Salazar Resources Announces Private Placement

On December 3, 2025, Salazar Resources Announces a non-brokered private placement financing to raise gross proceeds of up to CAD $1,430,000. The company plans to issue up to 11,000,000 common shares at a price of $0.13 per share. The proceeds are intended to fund costs on the Company's resource properties and for general working capital. The release also notes participation from certain insiders and a four-month hold period on the issued securities, subject to TSX Venture Exchange acceptance.

This private placement is a necessary action for Salazar Resources to address its ongoing capital requirements. The most recent interim financial statements for the period ended September 30, 2025, indicated a cash balance of only $560,717 CAD. Over the six months ended September 30, 2025, the company reported a net loss of -$1,128,179, used -$599,385 in operating activities, and -$517,170 in investing activities. This demonstrates a significant cash burn rate and an immediate need for capital to sustain operations.

The announced financing of $1.43 million will provide critical short-term liquidity. While necessary, it comes at a discount to the recent closing price of $0.17 CAD, indicating a pressing need for funds and potentially a limited ability to raise capital at market prices for a larger placement. This will result in approximately 4.4% dilution to existing shareholders (11,000,000 new shares / 248,859,254 current shares).

Compared to the previous financing completed on January 17, 2025, which raised $1.75 million at $0.07 per share, this new placement at $0.13 per share reflects a higher price, which is a positive sign that the company's valuation or market sentiment has improved since the last dilutive event. However, the need for continuous financing signals that the company has not yet achieved financial self-sufficiency or secured sufficient long-term funding for its development and exploration plans.

The use of proceeds for "resource properties" and "working capital" is standard but doesn't point to any new, specific value-generating initiatives beyond maintaining current activities and meeting operational expenses, including the recently announced Ecuadorean mining inspection fee payments. The fee ($47,000 due June 2025, $285,000 due January 2026) is a significant and unexpected cost that contributes to the company's cash burn and highlights the challenging operating environment.

Overall, the financing is crucial for the company's liquidity but does not fundamentally alter its financial trajectory or project development strategy. It is a routine step to keep the company funded given its current cash burn.

Salazar Resources Limited (SRL) is a Canadian mineral exploration company focused on properties in Ecuador. The company's primary asset is a 25% carried interest in the El Domo Joint Venture (JV) with Silvercorp Metals Inc., which holds a 75% interest and acts as operator. The El Domo mine is targeting production by the end of 2026. Salazar's carried interest value is US$20 million, meaning Silvercorp funds Salazar's initial share of costs up to this amount. Post-recoupment, dividend distribution will be pro-rata (75%/25%).

Beyond El Domo, Salazar Resources holds a portfolio of other exploration assets in Ecuador. Recent developments include: * Acquisition of Exploration Properties from Silvercorp (December 2024 / July 2025): Salazar acquired full ownership of the Santiago, Pijili, Tarqui, and Quimi projects (previously held 20% interest in Santiago and Pijili, and gained 10% interest in Tarqui and Quimi). In exchange, Silvercorp received NSR royalties on these projects, with buy-back options for Salazar. * Macara Project: Comprises two concessions, subject to a 0.5% NSR which can be purchased for US$1 million. * Los Osos Concession: 100% owned, with a 1% NSR retained by the vendor, purchasable for US$1 million. * Ruminahui Project: 100% interest in two concessions. The company also has pending concession applications.

Salazar Resources is actively working to advance its projects through exploration and, in the case of El Domo, construction and development, while also seeking farmout agreements for some of its recently acquired exploration properties to fund their advancement.