Diablillos

All dollar ($) figures are presented in US dollars unless otherwise stated. Base case metal prices used in the PFS are $2,050 per gold (“Au”) ounce (“oz”) and $25.50 per silver (“Ag”) oz.

PFS Study Highlights:

• Attractive project economics:  $747 million after-tax Net Present Value discounted at 5% per annum (“NPV₅%”); 27.6% Internal Rate of Return (“IRR”) and 2.0-year payback period.
  • At current spot prices¹ an after-tax NPV_5% of $1,291 million with an IRR of 39.3% and payback of 1.5 years.
• Substantial silver and gold production – 13.4 Moz silver-equivalent (“AgEq”) average annual production over a 14-year life-of-mine (“LOM”), comprised of 7.6 Moz Ag and 72 koz Au, with average annual production of 16.4 Moz AgEq over the first five years of full mine production, comprised of 11.7 Moz Ag and 59 koz Au.
• Low All-in Sustaining Cash Costs (“AISC”)² – Average AISC of $12.67/oz AgEq over LOM, and $11.23/oz AgEq over the first five years of full mine production.
• Initial capital expenditures - Initial pre-production capital expenditure of $544 million (including contingency) with a further $77 million in sustaining capital over the LOM.
• Significant potential for additional economic improvements – Several additional opportunities that may further enhance the economic returns as detailed later in this release:
  • Replacement of on-site self-generation from a combined solar-diesel power plant with a connection to the national grid under a long-term power purchase agreement  from a third party. Capturing this opportunity would provide a meaningful reduction to initial capital, lower operating costs and, potentially, improve the carbon footprint of the Project.
  • A revised mine plan based on a new Mineral Resource and Reserve estimate that incorporates the additional Phase IV exploration drilling results at JAC and the northeast zone of Oculto as well as higher metal price assumptions. A new mine plan may present the opportunity to reduce strip ratio, and improve operating cashflow.
  • Expansion of available water resources to the Project to remove constraints on plant throughput resulting in increased metal production.
  • Treatment of marginal material currently classified as waste through secondary processing, such as heap leaching, resulting in increased metal production.
  • Improvements to the design of the Tailings Storage Facility (“TSF”) to reduce capital and operating cost, and also decrease the environmental footprint.  

Project Economics

Table 1 – Commodity Price Sensitivity Analysis

Economic Parameters	Base Case Prices	Spot Prices1	Down-Side Prices
Silver Price ($/oz)	$25.50	$30.70	$23.50
Gold Price ($/oz)	$2,050	$2,651	$1,850
After-tax NPV (5%, USD$ / CAD$ million)	$747 / $1,046	$1,291 / $1,808	$552 / $772
After-tax NPV (8%, USD$ / CAD$ million)	$552 / $772	$994 / $1,392	$392 / $549
After-Tax IRR (%)	27.6%	39.3%	22.8%
Payback (years)	2.0	1.5	2.4

¹Note:  Spot Price as at close on November 29^th, 2024, per https://www.lbma.org.uk/    USD:CAD F/X rate: 1.40

The PFS presents a range of metal pricing scenarios on an after-tax basis to evaluate the economics of both upside and downside price scenarios. The economics of Diablillos are very robust and offer significant leverage to both silver and gold prices, with an after-tax NPV_5% of $1,291 Million and an IRR of 39.3% at current spot silver and gold prices (Table 1).

Production Summary

Diablillos is designed as a conventional open-pit mining operation with mill throughput of 9,000 tonnes per day (“tpd”) and an optimized production sequence targeting high-grade silver and gold mineralization in the early years of the mine plan.  Over the 14-year mine life, the Project is expected to average annual production of 7.6 Moz silver and 72 koz gold, with an average of 11.7 Moz silver and 59 koz gold over the first five years of full mine production (Table 2 and Figure 1).  The robust production profile in the initial years underlines the Project’s efficiency and strong cash-flow generation potential. 

The processing plant has been designed for a nameplate capacity of 9,000 tpd, or 3.15 million tonnes per annum (“tpa”) considering 350 days a year of operation.  A conventional silver/gold processing plant flowsheet was developed that incorporates crushing, grinding, gravity concentration, an intense cyanidation circuit, cyanide leaching with oxygen addition, counter current decantation washing thickeners and Merrill-Crowe precious metal recovery from solution followed by on-site smelting to doré bars. The leached solids are detoxified, thickened, and pumped to a TSF for permanent disposal.

Metallurgical test work has been carried out in a range of different laboratories between 1996 and 2023 and all the results have been considered as part of the PFS. A geo-metallurgical model has been developed segregating the deposit into five distinct domains, with overall LOM silver and gold recoveries averaging 83.6% and 86.8%, respectively. 

Tailings from the process plant will be stored in a multi-phase, fully lined, cross valley TSF. The facility will be raised using the downstream method with the initial starter impoundment, constructed from borrow material and open pit pre-strip waste, providing storage for the first three years of production.

Table 2 – Grade and Production Profile

	Units	Avg. First 5 Years Full Production	Avg. LOM (Year 1 – 14)
Silver Grades	(g/t)	143 g/t	91 g/t
Gold Grades	(g/t)	0.71 g/t	0.81 g/t
Silver-Equivalent Grades	(g/t)	201 g/t	159 g/t
Silver Production	(M oz)	11.7	7.6
Gold Production	(k oz)	59	72
AgEq Production	(M oz)	16.4	13.4

Note:  AgEq is calculated using base case prices for silver and gold (Au/Ag price ratio of 80.39)

Figure 1 – Annual Silver Equivalent Production and Grade Profile

Operating Costs

The operating cost estimates are based on an owner-operated truck and shovel mining operation, conventional processing plant, and TSF with power provided from an on-site combined solar-diesel power plant.

The PFS operating cost estimates are shown on a per tonne milled basis in Table 3. The PFS estimates that the AISC averages $11.23/oz AgEq the first five years of production, and $12.67/oz AgEq over the LOM.  This AISC is believed to be at the low end of the primary silver production cost curve².

Table 3 – Mine Operating Cost Estimates 

Operating Costs	Basis	Avg. LOM ($)
Mining (ore and waste)	per tonne milled	14.50
Processing Plant, Utilities and Maintenance	per tonne milled	22.71
Camp and Service Hub	per tonne milled	4.29
G&A and Logistics	per tonne milled	3.91
Total Operating Cost	per tonne milled	45.42

Project Capital Costs 

The initial pre-production capital expenditures for the Project are summarized in Table 4. Capital expenditures to be incurred after the start-up of operations are assigned to sustaining capital and are projected to be covered by operating cash flows. Initial capital costs are estimated at $544 million including contingency and total sustaining capital costs are estimated at $77 million. Approximately 80% of the costs are based on quoted prices and this has resulted in a lower estimated contingency cost of $26 million. Over 60% of equipment, supplies, construction, and service procurement packages will be sourced from local companies, complying with local regulations.

Table 4 – Summary of Capital Cost Estimates

Description	Updated PFS Study	Prior PFS (Mar. 25, 2024)	Change
			Updated PFS vs. Prior PFS
	$ millions	$ millions	% Change	$ Change
Surface Mining	128.6	39.3	227%	89.3
Processing	111.7	96.9	15%	14.8
Site Infrastructure	166.7	152.0	10%	14.7
Owner and Indirect Costs	110.2	64.9	70%	45.3
Initial Capital Costs (excl. contingency)	517.2	353.2	46%	164
Contingency & Other Provisions	26.3	20.3	30%	6
Initial Capital Costs	543.5	373.5	46%	170
Sustaining Capital	76.5	65.0	18%	11.5
Closure	26.4	11.1	138%	15.3
Total Capital Costs	646.4	449.6	44%	196.8

Taxes and Royalties

The PFS incorporates the impact of Argentina’s recently enacted RIGI legislation designed to stimulate new large-scale investments.   Under this framework, the Company expects a competitive fiscal regime, with key rates as follows:

• Argentina corporate income tax: 25%
• Municipal taxes: 1.2%
• Stamp Tax 1.6%
• Provincial mining royalty: 3%
• Export duties: 0%

In total, the updated taxes, royalties and export duties total $536 million in the PFS, compared to $965 million under the Prior PFS. Additionally, the RIGI program provides benefits such as the removal of all foreign exchange restrictions, value-added tax (VAT) reimbursement on capital expenditures, and tax stability for the life of mine.

A 1% NSR royalty is payable to EMX Royalty Corporation.

Summary of Economic Results

Table 5 summarizes the key economic results and parameters of the PFS.

Table 5 – Summary of Project Economics

Metrics	Units	Results
Life of mine	years	14
Total mineralized material mined	M tonnes	42.3
Total contained silver	M oz	123.4
Total contained gold	k oz	1,108.2
Strip ratio (excludes pre-stripping)	Waste:ore	6.2
Throughput	tpd	9,000
Head grade – silver (first 5 years / LOM)	g/t	143 / 91
Head grade – gold (first 5 years / LOM)	g/t	0.71 / 0.81
Recoveries – silver (first 5 years / LOM)	%	83.5 / 83.6
Recoveries – gold (first 5 years / LOM)	%	85.2 / 86.8
Average Production – silver (first 5 years / LOM)	M oz	11.7 / 7.6
Average Production – gold (first 5 years / LOM)	k oz	58.7 / 71.9
AISC (LOM) – silver equivalent (first 5 years / LOM)	$/oz AgEq	11.23 / 12.67
Initial Capital Costs (including contingency)	$ M	544
Sustaining Capital Costs	$ M	77
Pre-Tax NPV5%	$ M	1,114
After-Tax NPV5%	$ M	747

Mineral Reserve Estimate – As of March 07, 2024

The Table below shows the Proven and Probable Mineral Reserves at Diablillos by deposit. The Mineral Reserves were estimated using a silver price of $22.50/oz and a gold price of $1,750/oz.

Diablillos Mineral Reserve Estimate

Mineral Reserve (all domains)	Tonnage (000 t)	Au (g/t)	Ag (g/t)	AgEq (g/t)	Contained Ag (koz)	Contained Au (koz)	Contained AgEq (koz)
Proven	12,364	0.86	177.7	246	46,796	341	97,839
Probable	29,930	0.80	79.7	143	76,684	766	136,267
Total Proven and Probable	42,294	0.81	90.8	154	123,480	1,107	209,619

Notes for Mineral Reserve Estimate:

1. Mineral reserves have an effective date of March 07, 2024.
2. The Qualified Person for the Mineral Reserve Estimate is Mr. Miguel Fuentealba, P.Eng.
3. The mineral reserves were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), Definition Standards for Mineral Resources and Reserves, as prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
4. The mineral reserves were based on a pit design which in turn aligned with an ultimate pit shell selected from a WhittleTM pit optimization exercise. Key inputs for that process are:
   • Metal prices of U$S 1,750/oz Au; U$S 22.50/oz Ag
   • Variable Mining cost by bench and material type. Average costs are U$S 1.94/t for all lithologies except for “cover” Cover mining cost of U$U 1.73/t, respectively.
   • Processing costs for all zone, U$S 22.97/t.
   • Infrastructure and G&A cost of U$S 3.32/t.
   • Pit average slope angles varying from 37° to 60°
   • The average recovery is estimated to be 82.6% for silver and 86.5% for gold.
5. The Mineral Reserve Estimate has been categorized in accordance with the CIM Definition Standards (CIM, 2014).
6. A Net Value per block (“NVB”) cut-off was used to constrain the Mineral Reserve with the reserve pitshell. The NVB was based on "Benefits = Revenue-Cost" being positive, where, Revenue = [(Au Selling Price (US$/oz) - Au Selling Cost (US$/oz)) x (Au grade (g/t)/31.1035)) x Au Recovery (%)] + [(Ag Selling Price (US$/oz) - Ag Selling Cost (US$/oz)) x (Ag grade (g/t)/31.1035)) x Ag Recovery (%)] and Cost = Mining Cost (US$/t) + Process Cost (US$/t) + Transport Cost (US$/t) + G&A Cost (US$/t) + [Royalty Cost (%) x Revenue]. The NVB method resulted in an average equivalent cut-off grade of approximately 46g/t AgEq.
7. In-situ bulk density was read from the block model, assigned previously to each model domain during the process of mineral resource estimation, according to samples averages of each lithology domain, separated by alteration zones and subset by oxidation.
8. All tonnages reported are dry metric tonnes and ounces of contained gold are troy ounces.
9. Mining recovery and dilution factors have not been applied to the Mineral Resource estimates.

Non-IFRS Financial Measures 

This news release contains certain non-IFRS measures, including AISC.  AISC includes operating costs, royalties, sustaining capital, closure costs, and corporate G&A and is calculated based on guidance provided by the World Gold Council (“WGC”). WGC is not a regulatory industry organization and does not have the authority to develop accounting standards for disclosure requirements. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company and the results of the PFS. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

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¹ Spot prices: $30.70/oz Ag & $2,651/oz Au closing prices on November 29^th, 2024 (Source: https://www.lbma.org.uk/

² Please see “Non-IFRS Financial Measures”

² www.silverinstitute.org/wp-content/uploads/2023/11/SilverMarket2023_interim-report.pdf?v=082811

July 2025 Mineral Resource Estimate Statement

Total Diablillos Mineral Resource Summary (Tank & Heap Leach) – As of July 21, 2025.  

Refer to footnotes in Tables 2 and 4

Visualization of Oculto and JAC Mineral Resource Estimate

Diablillos Mineral Resource Estimate by Deposit (Tank Leach Material Only) – As of July 21, 2025.  

Deposit	Zone	Category	Tonnes (000 t)	Ag (g/t)	Au (g/t)	AgEq (g/t)	Contained Ag (000 Oz)	Contained Au (000 Oz)	Contained AgEq (000 Oz)
Oculto	Oxides	Measured	20,485	107	0.89	188	70,193	588	123,611
		Indicated	36,898	45	0.77	115	53,128	917	136,439
		Measured & Indicated	57,382	67	0.82	141	123,321	1,505	260,051
		Inferred	8,026	27	0.67	88	6,898	173	22,663
JAC	Oxides	Measured	6,061	161	0.08	169	31,371	17	32,875
		Indicated	7,073	119	0.05	124	27,121	11	28,090
		Measured &	13,134	139	0.06	144	58,492	27	60,965
		Indicated
		Inferred	1,036	77	0.01	78	2,558	0	2,602
Fantasma	Oxides	Measured	-	-	-	-	-	-	-
		Indicated	1,049	72	0.01	73	2,436	0	2,455
		Measured & Indicated	1,049	72	0.01	73	2,436	0	2,455
		Inferred	475	64	0.01	65	978	0	986
Laderas	Oxides	Measured	-	-	-	-	-	-	-
		Indicated	806	17	0.67	78	428	17	2,014
		Measured & Indicated	806	17	0.67	78	428	17	2,014
		Inferred	104	15	0.68	77	51	2	259
Sombra	Oxides	Measured	-	-	-	-	-	-	-
		Indicated	758	54	0.12	65	1,317	3	1,594
		Measured & Indicated	758	54	0.12	65	1,317	3	1,594
		Inferred	51	80	0.04	84	131	0	137
Total (tank leach)	Oxides	Measured	26,545	119	0.71	183	101,564	604	156,487
		Indicated	46,584	56	0.63	114	84,430	948	170,592
		Measured & Indicated	73,129	79	0.66	139	185,994	1,553	327,078
		Inferred	9,693	34	0.57	79	10,616	176	26,647

1. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
2. The formula for calculating AgEq is as follows: Silver Eq Oz = Silver Oz + Gold Oz x (Gold Price/Silver Price) x (Gold Recovery/Silver Recovery).
3. The Mineral Resource model was populated using Ordinary Kriging grade estimation within a three-dimensional block model and mineralized zones defined by wireframed solids, which are a combination of lithology and alteration domains.  The 1m composite grades were capped where appropriate.
4. The Mineral Resource is reported inside a conceptual Whittle open pit shell derived using US$ 27.50/oz Ag price, US $2,400/oz Au price, 83% process recovery for Ag, and 87% process recovery for Au.
5. The constraining open pit optimization parameters used were US $1.94/t mining cost, US $22.96/t processing cost, US $3.32/t G&A cost, and average 51-degree open pit slopes.
6. The MRE has been categorized in accordance with the CIM Definition Standards (CIM, 2014).
7. A Net Value per block [NVB] calculation was used to constrain the Mineral Resource, determine the "Benefits = Income-Cost", where, Income = [(Au Selling Price (US$/oz) - Au Selling Cost (USD/Oz)) x (Au grade (g/t)/31.1035)) x Au Recovery (%)] + [(Ag Selling Price (US$/oz) - Ag Selling Cost (USD/Oz)) x (Ag grade (g/t)/31.1035)) x Ag Recovery (%)] and Cost = Mining Cost (US$/t) + Process Cost (US$/t) + Transport Cost (US$/t) + G&A Cost (US$/t) + [Royalty Cost (%) x Income]
8. The Mineral Resource is sub-horizontal with sub-vertical feeders and a reasonable prospect for eventual economic extraction by open pit and tank leach processing methods.
9. In-situ bulk density were assigned to each model domain, according to samples averages for each lithology domain, separated by alteration zones and subset by oxidation.
10. All tonnages reported are dry metric tonnes and ounces of contained gold are troy ounces.
11. Mining recovery and dilution factors have not been applied to the Mineral Resource estimates.
12. The Mineral Resource was estimated by Luis Rodrigo Peralta, B.Sc., FAusIMM CP (Geo), Independent Qualified Person under NI 43-101.
13. Mr. Peralta is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues that could materially affect the potential development of the Mineral Resource.
14. All figures are rounded to reflect the relative accuracy of the estimates. Minor discrepancies may occur due to rounding to appropriate significant figures.

Updated Tank Leach Mineral Resource Estimate Highlights Significant Growth at JAC and Oculto

The largest gains in the updated tank leach MRE stem from significant extensions at the JAC and Oculto deposits.   These expansions underscore the high-grade continuity of mineralization at both deposits and their central role in supporting the upcoming mine plan.  In total, the Diablillos project is now comprised of five deposits (Oculto, JAC, Fantasma, Laderas and Sombra) containing defined Mineral Resources.

• At Oculto, M&I tonnage increased by 23%, with contained silver up 11% and gold up 14%.   The growth is primarily driven by strong drill results from holes DDH-24-011, DDH-24-021, DDH-24-027, DDH-24-031, DDH-24-034, DDH-24-043, DDH-24-049, DDH-24-051, DDH-24-052, DDH-25-011 and DDH-25-024, which extended both the Silver Enrichment and Deep Gold zones to the northeast.
• At JAC, M&I Mineral Resources increased by 148% in tonnage, with contained silver rising 70% and contained gold up 23%.  This substantial increase reflects the success of the Phase IV drilling campaign, which focused on extending the orebody to the southwest and expanding the margins, further highlighting the potential of high-grade, near-surface silver mineralization in this area.
• At Fantasma, M&I Mineral Resources grew by 54% in tonnage and 6% in contained silver.  The increase in metal price assumptions has upgraded material previously classified as waste into lower grade mineralization, enhancing the size of the Mineral Resource in this area. 
• At Laderas, M&I tonnage rose by 74%, with contained silver up 79% and gold up 21%.  As with Fantasma, higher metal price assumptions have led to the reclassification of material previously categorized as waste into lower grade silver and gold mineralization.  
• At Sombra, the initial M&I Mineral Resource is supported by 11 initial drill holes in this newly discovered area. Drill holes DDH-24-069, DDH-24-062, DDH-24-036, DDH-25-019 and DDH-25-026 confirm the potential of this zone.  Although still at an early stage, Sombra shows significant potential as the mineralization lies beneath only 35 metres of easily mineable unconsolidated colluvial cover.

 Comparison of the July 2025 M&I MRE (tank leach) to the Prior Estimate (November 2023).

Deposit		Category	Tonnes (000 t)	Ag (g/t)	Au (g/t)	Contained Ag (k oz Ag)	Contained Au (k oz Au)
Oculto	Current Resource	Measured & Indicated	57,382	67	0.82	123,321	1,505
	Prior Resource	Measured & Indicated	46,824	74	0.88	111,401	1,325
	Variance (%)		23%	-9%	-7%	11%	14%
	Current Resource	Measured & Indicated	13,134	139	0.06	58,492	27
JAC	Prior Resource	Measured & Indicated	5,286	202	0.13	34,329	22
	Variance (%)		148%	-31%	-54%	70%	23%
Fantasma	Current Resource	Measured & Indicated	1,049	72	-	2,436	-
	Prior Resource	Measured & Indicated	683	105	-	2,306	-
	Variance (%)		54%	-31%	-	6%	-
Laderas	Current Resource	Measured & Indicated	806	17	0.67	428	17
	Prior Resource	Measured & Indicated	464	16	0.91	239	14
	Variance (%)		74%	6%	-26%	79%	21%
Sombra	Current Resource	Measured & Indicated	758	54	0.12	1,317	3
	Prior Resource	Measured & Indicated	-	-	-	-	-
	Variance (%)		n/a	n/a	n/a	n/a	n/a
All deposits (tank leach only)	Current Resource	Measured & Indicated	73,129	79	0.66	185,994	1,553
	Prior Resource	Measured & Indicated	53,257	87	0.79	148,275	1,360
	Variance (%)		37%	-9%	-16%	25%	14%

Notes to Mineral Comparison Table

1. Key Assumptions in July 2025 MRE:
   • Ag price: $ 27.50/oz & Au price: $2,400/oz
   • Average recovery rates (tank leach): 82.6% Ag and 86.5% Au
   • Cut-off grade: based on Net Value per Block, with an average cut-off grade equivalent to ~39 g/t AgEq
   • Open pit optimization parameters: Mining cost; $1.94/t; Processing cost; $22.97/t; G&A cost $3.32/t

2. Key Assumptions in 2023 MRE:
   • Ag price: $ 24.00/oz & Au price: $1,850/oz
   • Average recovery rates (tank leach): 82.6% Ag and 86.5% Au
   • Cut-off grade: based on Net Value per Block, with an average cut-off grade equivalent to ~45 g/t AgEq
   • Open pit optimization parameters: Mining cost; $1.94/t; Processing cost; $22.97/t; G&A cost $3.32/t
   • For additional details, please refer to “NI 43-101 Technical Report, Mineral Resource Estimate, Diablillos Project” with an effective date of November 22, 2023 and available on the Company’s profile on www.sedarplus.ca.

Heap Leach Mineral Resource Estimate

The inclusion of a maiden heap leach Mineral Resource estimate marks an important milestone for Diablillos.  This additional M&I tonnage of 30.8 Mt of lower-grade material is contained within the same constraining Whittle open pit as described above for the tank leach MRE. The vast majority of this tonnage, which is sourced from the Oculto deposit, was previously classified as waste and now provides the opportunity to reduce the strip ratio and further enhance overall Project economics.  Preliminary metallurgical testwork has demonstrated that the heap leach material offers a potential incremental, cost-effective processing route that complements the primary tank leach circuit.  A Preliminary Economic Assessment (“PEA”) evaluating the additional heap leach potential is planned for completion in H1 2026.    

Diablillos Mineral Resource Estimate (Heap Leach Material Only) – As of July 21, 2025.  

Deposit	Zone	Category	Tonnes (000 t)	Ag (g/t)	Au (g/t)	AgEq (g/t)	Contained Ag (000 Oz Ag)	Contained Au (000 Oz Ag)	Contained AgEq (000 Oz Ag)
Total	Oxides	Measured	6,673	16	0.14	25	3,486	30	5,342
		Indicated	24,102	12	0.17	23	9,163	133	17,506
		Measured &	30,774	13	0.16	23	12,649	162	22,848
		Indicated
		Inferred	10,024	9	0.20	27	2,811	64	6,850

Notes for July 2025 MRE (Heap Leach Material):

1. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
2. The formula for calculating AgEq is as follows: Silver Eq Oz = Silver Oz + Gold Oz x (Gold Price/Silver Price) x (Gold Recovery/Silver Recovery).
3. The Mineral Resource model was populated using Ordinary Kriging grade estimation within a three-dimensional block model and mineralized zones defined by wireframed solids, which are a combination of lithology and alteration domains.  The 1m composite grades were capped where appropriate.
4. The Mineral Resource is reported inside a conceptual Whittle open pit shell derived using US$ 27.50/oz Ag price, US $2,400/oz Au price, 80% process recovery for Ag, and 58% process recovery for Au.
5. The constraining open pit optimization parameters used and overall operational cost of US $11.31/t.
6. The MRE has been categorized in accordance with the CIM Definition Standards (CIM, 2014).
7. A Net Value per block [NVB] calculation was used to constrain the Mineral Resource, determine the "Benefits = Income-Cost", where, Income = [(Au Selling Price (US$/oz) - Au Selling Cost (USD/Oz)) x (Au grade (g/t)/31.1035)) x Au Recovery (%)] + [(Ag Selling Price (US$/oz) - Ag Selling Cost (USD/Oz)) x (Ag grade (g/t)/31.1035)) x Ag Recovery (%)] and Cost = Mining Cost (US$/t) + Process Cost (US$/t) + Transport Cost (US$/t) + G&A Cost (US$/t) + [Royalty Cost (%) x Income]
8. In-situ bulk density were assigned to each model domain, according to samples averages for each lithology domain, separated by alteration zones and subset by oxidation.
9. All tonnages reported are dry metric tonnes and ounces of contained gold are troy ounces.
10. Mining recovery and dilution factors have not been applied to the Mineral Resource estimates.
11. The Mineral Resource was estimated by Mr. Peralta, B.Sc., FAusIMM CP (Geo), Independent Qualified Person under NI 43-101.
12. Mr. Peralta is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues that could materially affect the potential development of the Mineral Resource.
13. All figures are rounded to reflect the relative accuracy of the estimates. Minor discrepancies may occur due to rounding to appropriate significant figures.

Plan View of Mineral Resource Estimate

Mineral Resource Estimate Methodology

• The tank leach open pit constrained MRE for Diablillos is based on a Net Value per Block methodology that results in an approximate cut-off grade of approximately 39 g/t AgEq, derived from assumptions regarding specified metal prices and estimated operating costs for mining, processing and G&A.
• The updated processing assumptions now incorporate a secondary lower cost heap leaching metal recovery process for lower-grade material, complementing the primary tank leaching. The heap leach MRE has also employed a Net Value per Block method that results in a cut-off grade of approximately 22 g/t AgEq.
• The updated MRE was prepared by Luis Rodrigo Peralta, B.Sc., FAusIMM CP (Geo), Independent Consultant, in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards incorporated, by reference, and in compliance with National Instrument NI 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) and has been reviewed internally by AbraSilver.
• The MRE incorporates approximately 157,211 metres of drilling from 733 drill holes (both historical and current).
• The MRE is based on the Oculto, JAC, Fantasma, Laderas and Sombra deposits within the broader Diablillos property, reported within a constraining Whittle open pit shell.  The cut-off grade was determined using a Net Value per Block calculation, factoring in the economic parameters outlined in the Supporting Technical Disclosure section below.
• Gold and silver grades were estimated into the block model using RC and Diamond Drill Holes (DDH), including drilling completed up to March 30, 2025. Industry-standard estimation methodologies were applied, including Ordinary Kriging (OK) and validation against an Inverse Distance squared estimate (ID²). Drill hole intervals were composited to a length of 1 metre, which is the average sampling length for core sampling.
• Grade capping was applied to composited grade intervals on a case-by-case basis for each estimation domain. Domains were defined by a combination of lithology, alteration, and oxide / sulphide state, resulting in a total of 24 estimation domains for gold and silver.

Supporting Technical Disclosure

• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
• The MRE incorporates geological and structural constraints and is constrained by an optimized Whittle open pit containing a total of 103.9 Mt of M&I Mineral Resources and 514 Mt of waste.
• Individual metals are reported at 100% of in-situ grades.
• The effective date of the MRE is July 21, 2025 and is based on drilling through March 30, 2025.
• There are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resource.
• Key Assumptions are outlined below (all figures are in US dollars unless otherwise noted):
  • Commodity prices used were US$ 27.50/oz Ag price and US $2,400/oz Au price
  • Note: Commodity price assumptions were guided by the NI 43-101 requirement for the Mineral Resource to have 'reasonable prospects' of eventual economic extraction. 
• Metallurgical recoveries: tank leach metallurgical recoveries applied to the Mineral Resources were obtained from a geo-metallurgical model that has been built, based on metallurgical test works performed at SGS Canada. This model incorporates five domains applied into the block model, based on a master composite for each, based on 15 samples per domain approximately. A fixed value of metallurgical recovery has been applied to each domain. Overall average of these five domains are 87% for gold and 83% for silver, respectively.
• Metallurgical recoveries: heap leach metallurgical recoveries were obtained from a preliminary bottle roll test work campaign on the lower grade mineralization. Recovery assumptions of 58% for gold and 80% for silver were used.
• Operating cost estimations: mining costs of $1.94/t; tank leach processing costs of $22.96/t and G&A costs of $3.32/t. As for the heap leach an overall processing cost of $11.31/t respectively.
• Open pit slopes: Open pit shell slope angles applied are based on 2022 geotechnical drilling and modelling. Six geotechnical sectors have been defined. The average overall angle assumed for open pit shell optimization was 51 degrees.
• A Net Value per block [NVB] calculation was used to constrain the Mineral Resource, determine the "Benefits = Income-Cost", where, Income = [(Au Selling Price (US$/oz) - Au Selling Cost (USD/Oz)) x (Au grade (g/t)/31.1035)) x Au Recovery (%)] + [(Ag Selling Price (US$/oz) - Ag Selling Cost (USD/Oz)) x (Ag grade (g/t)/31.1035)) x Ag Recovery (%)] and Cost = Mining Cost (US$/t) + Process Cost (US$/t) + Transport Cost (US$/t) + G&A Cost (US$/t) + [Royalty Cost (%) x Income].
• The formula for calculating AgEq is as follows: Silver Eq Oz = Silver Oz + Gold Oz x (Gold Price/Silver Price) x (Gold Recovery/Silver Recovery).
• For additional information in respect of the Company’s drill results referenced herein, please refer to the Company’s news releases dated August 19, 2024, September 30, 2024, October 23, 2024, December 11, 2024, February 19, 2025, March 11, 2025, May 20, 2025 and July 15, 2025.

QA/QC and Core Sampling Protocols

AbraSilver applies industry standard exploration methodologies and techniques, and all drill core samples are collected under the supervision of the Company’s geologists in accordance with industry best practices. Drill core is transported from the drill platform to the logging facility where drill data is compared and verified with the core in the trays. Thereafter, it is logged, photographed, and split by diamond saw prior to being sampled. Samples are then bagged, and quality control materials are inserted at regular intervals at site; these include blanks and certified reference materials as well as duplicate core samples which are collected in order to assess sampling precision and reproducibility. Groups of samples are then placed in large bags which are sealed with numbered tags in order to maintain a chain-of-custody during the transport of the samples from the project site to the laboratory.

All samples are received by the ASA (Alex Stewart Argentina) preparation laboratory in Salta, where they are prepared, then the pulp sachet is directly dispatched to its facility in Mendoza, Argentina, where they are analyzed. All samples are analyzed using a multi-element technique consisting of a four-acid digestion followed by ICP/AES detection, and gold is analyzed by 50g Fire Assay with an AAS finish. Silver results greater than 100g/t are re-analyzed using four acid digestion with an ore grade AAS finish.

Qualified Persons and Technical Information

The site visit, review of various geological aspects including sampling techniques, drill core, logging, assay laboratory, secondary laboratory check samples and Mineral Resource estimate were done by Mr. Luis Rodrigo Peralta, B.Sc., FAusIMM CP (Geo). Mr. Peralta is an independent Qualified Person as defined by the NI 43-101. Mr. Peralta has reviewed and approved the technical content of this news release.

The full Technical Report in respect of the Mineral Resource estimate is being prepared in accordance with NI 43-101 and will be available on SEDAR+ (www.sedarplus.ca) under the Company’s issuer profile. The effective date of the Mineral Resource estimate is July 21, 2025.

Significant Exploration Upside Potential  

There remains substantial potential to further expand the Diablillos Mineral Resource estimate within the existing deposits, particularly at Oculto East.  Ongoing and planned drilling is aimed at both step-out exploration and defining new high-grade zones to extend the current Mineral Resources.   The Company is advancing its fully-funded Phase V drill program, which includes an additional 20,000 metres of drilling scheduled for completion by early 2026. 

Existing Deposits:

• Oculto: Ongoing exploration is focused on extending known zones of mineralization, particularly towards the northeast, where Oculto East represents a key growth opportunity.   Results from recently announced hole DDH 25-024, with 31m @ 9.96g/t Au and 16.2g/t Ag, show the very high-grade gold potential of the Oculto East area, and follow up drilling is underway with three rigs. Geological interpretation has identified several structures in the area with high-grade gold potential.
• JAC: Upcoming drilling will test the margins of the conceptual constraining open pit where mineralization remains open.
• Sombra: An initial Mineral Resource has now been established, and additional drilling is planned to expand this new discovery.  The mineralized zone is very shallow, covered by unconsolidated colluvium, and is open along strike. Drilling was postponed here following the high-grade gold intercept at Oculto East, which became the priority exploration area.

Diablillos Porphyry Complex:

• Cerro Viejo:   The shallow intercept of 36.0m at 1.91 g/t gold in hole DDH 24-056 in the root zone of epithermal mineralization at Cerro Viejo is scheduled for follow-up drilling later this year. Mapping has shown that gold mineralized silicified zones extend significantly towards the west of hole DDH 24-056.
• Cerro Blanco: This is the highest priority area for porphyry style mineralization based on shallow historical Reverse Circulation (“RC”) drill results and surface rock chip sampling of a mineralized breccia zone. The area has been mapped in detail and surface sampling completed in preparation for a deeper drilling program expected to commence before the end of August 2025.

Over US$50 million has been spent on exploration at Diablillos totaling over 100,000 meters of drilling in over 450 holes.