Capitan Silver Corp. Reports Significant Increase in Inferred Mineral Resources at Capitan Hill Oxide Gold Deposit

On December 5, 2025, Capitan Silver announced an updated, pit-constrained Inferred Mineral Resource Estimate (MRE) for its Capitan Hill Oxide Gold Deposit, part of the Cruz de Plata Project in Mexico.

The updated MRE reports 39.8 million tonnes at a grade of 0.41 g/t gold and 3.3 g/t silver. This equates to 525,000 ounces of contained gold and 4,244,000 ounces of contained silver, using a 0.18 g/t gold cut-off. This represents a 115% increase in contained gold ounces compared to a historical 2020 estimate.

The company also provided an update on its ongoing exploration program, stating that 10,000 metres of a planned 15,000-metre drill program have been completed, with assays for 31 holes pending. A new drill-ready gold target, "El Tubo," has been identified, and a property-wide geophysical survey is underway with results expected in Q1 2026.

The news is materially positive and represents the successful delivery of a key milestone outlined at the beginning of the year. The 115% increase in inferred gold ounces significantly adds to the project's overall scale and provides valuable optionality, even as the company maintains its primary focus on high-grade silver.

Reviewing the company's progress through 2025 reveals a systematic and successful de-risking strategy: - Q1 2025: Capitan secured a C$5.3 million financing at a premium ($0.40/unit), bringing in strategic investor Jupiter Gold & Silver Fund. They then announced and commenced a 10,000m drill program focused on the high-grade Jesus Maria silver trend and stated their intention to update the Capitan Hill gold resource. - Q2-Q3 2025: The company executed several strategic corporate moves. It consolidated its land package by acquiring an adjacent 2,171-hectare property from Fresnillo for US$4 million, expanding the mineralized trend. It also cleaned up its royalty structure, buying out the Altiplano royalty. A C$6.6 million cash injection from the exercise of all outstanding warrants in July left the company well-funded with a clean capital structure. - Q3-Q4 2025: The drill program began yielding exceptional results. The September 2nd release reported bonanza-grade silver (2,636 g/t Ag over 1.5m), which served as a major market catalyst. Subsequent drill results in October and November confirmed high-grade continuity and discovered new zones, prompting an expansion of the drill program to 15,000 metres.

The December 5th resource update fits perfectly into this timeline of execution. While the market's primary focus has been on the high-grade silver drill results, this large, bulk-tonnage gold resource adds a solid foundation to the Cruz de Plata project. CEO Alberto Orozco's statement correctly frames this as adding "real strength" and "optionality" to their silver district. The market has been anticipating this update, and the significant increase in size meets or exceeds reasonable expectations. The news provides fundamental justification for the stock's strong performance and further validates management's strategy.

A critical point is that this is an Inferred resource, the lowest confidence category. The grade of 0.41 g/t Au is low and its economic viability is highly sensitive to the assumptions used in the MRE (e.g., US$2,500/oz gold price, low operating costs). However, as a secondary asset to a high-grade silver project, it provides significant strategic value.

Capitan Silver Corp. is a Canadian exploration company focused on its 100%-owned Cruz de Plata Silver-Gold Project in Durango, Mexico. The project is a district-scale, intermediate sulphidation epithermal system. The company's strategy is focused on advancing two primary target types: 1. Jesus Maria Silver Trend: A series of high-grade silver-polymetallic veins, which is the company's primary exploration focus. 2. Capitan Hill Gold Deposit: A bulk-tonnage, oxide-gold deposit amenable to open-pit mining.

Recent land acquisitions have consolidated the district, and the project is now considered royalty-free after the company executed agreements to eliminate all existing royalties.