OUTCROP SILVER LAUNCHES PROJECT ARGENTUM: TECHNICAL WORK PLAN APPROVED FOR SANTA ANA PILOT OPERATION, TARGETED FOR PRODUCTION IN 2027

Outcrop Silver & Gold Corporation announced the public launch of "Project Argentum" at its 100%-owned Santa Ana project in Falan, Tolima, Colombia, confirming that the Colombian National Mining Agency (ANM) has approved the Technical Work Plan (PTO) for Concession Contract HFL-151.

According to the company’s Oct 15, 2026 release, the project will feature a pilot plant and small-scale underground mine of up to 40 tonnes per day (tpd) on the La Porfía vein system. The operation will be accessed via the La Ivanna portal, with first production targeted for 2027. The mining method will be non-mechanized cut-and-fill with backfill, involving selective mining down to 0.8 m widths. Resource modelling uses a 1.0 m minimum mining width, with narrower intervals diluted to 1.0 m.

Processing will involve crushing, grinding, gravity concentration, and flotation, followed by smelting and refining to silver-gold doré. The process is described as cyanide- and mercury-free, with process water recirculated and dry-stack tailings, a significant portion of which will be returned underground as backfill. The plant will be located on the company-owned 22-hectare La Ivanna property, approximately 115 m from the La Porfía vein, adjacent to the Falan road with power lines on or near the property.

An Environmental Impact Assessment (EIA) has been filed with CORTOLIMA, the regional authority. The environmental licence is expected in early 2027, and construction and research activities are expected to commence in 2027, making the licence the gating item before construction begins. A Preliminary Economic Assessment (PEA) is to commence shortly after the filing of the technical report for the Sept 14, 2026 Mineral Resource Estimate (MRE). The technical report is due by the end of October 2026. The PEA will evaluate scaling to a "medium-scale" underground operation, defined under Colombian Decree 1666 of 2016 as more than 15,000 and up to 300,000 tonnes per year. Scaling would require further permit applications.

The Argentum Innovation Center in Falan opened to the public on Oct 4, 2026. Described as a community, education, and research asset, it is not a revenue item.

Resource context from the Sept 14, 2026 release, prepared by APEX Geoscience Ltd., includes an Indicated resource of 1,793 kt at 519 g/t AgEq (29.9 moz AgEq) and an Inferred resource of 2,352 kt at 368 g/t AgEq (27.9 moz AgEq), effective Sept 10, 2026. Metal price assumptions are US$40/oz Ag and US$3,100/oz Au, with recoveries of 96.3% Ag and 98.5% Au, and an AgEq ratio of approximately 79:1. The 35,000-metre drill campaign continues, now utilizing four rigs. Carlos Torres, P.Geo., VP Exploration, is the Qualified Person.

The release does not provide a capital cost estimate for the pilot plant, an operating cost estimate, production or revenue guidance, or mine life. There are no Mineral Reserves, and the company cautioned that the production decision "is not based on a feasibility study of Mineral Reserves demonstrating economic and technical viability," noting that this creates "increased uncertainty and there are multiple technical and economic risks of failure." Additionally, there is no funding plan for construction, and no confirmation that the technical report underpinning the MRE has actually been filed, as it remains "expected" by the end of October 2026.

Outcrop Silver & Gold Corporation (OCG) received approval for its Preliminary Technical Objective (PTO) from the National Mining Agency (ANM), marking the second stage in the company’s four-step Colombian permitting process. The remaining steps include securing an environmental license via CORTOLIMA/ANLA, followed by construction and production. This approval moves the La Porfía/La Ivanna pilot into an approved mine plan, addressing regulatory requirements for the project.

The pilot operates at 40 tonnes per day (tpd), implying approximately 14,600 tonnes of feed annually, which remains below the 15,000 tonnes per year threshold for medium-scale operations in Colombia. Based on the September 10, 2026, Indicated resource average of 519 g/t AgEq, the pilot is estimated to produce a few hundred thousand ounces of AgEq per year at full availability. The company describes the pilot as a data-generation platform intended to produce bulk metallurgical and operating data to de-risk larger-scale scenarios, rather than as a commercial mine.

The PTO approval was anticipated as a required stage but arrived one month after the Mineral Resource Estimate (MRE) and well before the Preliminary Economic Assessment (PEA). This timing suggests management intends to proceed with physical development rather than waiting for the PEA. The MRE was released on September 14, 2026, following a revised schedule that delayed the update from the originally guided Q1 2026 timeframe. Additionally, the company is meeting its forward-looking promises from the December 2025 CEO letter, which called for 35,000 meters of drilling in 2026 with at least three rigs; four rigs are now active.

The release does not include capital expenditure figures, average initial sustaining costs (AISC), net present value (NPV), internal rate of return (IRR), reserves, or disclosed sources of construction funding. No PEA currently exists, and there is no mention of new investment by named strategic shareholders.

Outcrop Silver & Gold Corporation shares closed at C$0.33 on the day of the September 14, 2026, MRE, which reported a 23.5% increase in Indicated ounces and a 106.3% increase in Inferred ounces. By October 14, 2026, the stock had fallen to C$0.26, representing a decline of approximately 21% during a period that also included high-grade drill results at Las Maras, Santa Ana Shoot 7, Morena, and Aguilar. The shares are currently 58% below their January 2026 high of C$0.62 and are within one cent of their 52-week low. No volume data was provided for the specific release, and no price data is available after October 14, 2026.

Outcrop Silver & Gold Corporation (TSX: OCG; OTCQX: OCGSF; FRA: MRG) is a pre-revenue junior explorer and developer focused on its flagship Santa Ana primary silver project. The company holds 100% ownership of the asset, which is located in the Mariquita District of Falan, Tolima, Colombia. The project encompasses approximately 28,000 hectares, including titles and applications, within a region the company describes as Colombia’s largest and highest-grade primary silver district, with mining records dating back to 1585. The site features a fully titled mineralized corridor spanning approximately 17 kilometers, with 13 major vein systems identified in the September 10, 2026 resource estimate.

The updated Mineral Resource Estimate (MRE), prepared by APEX Geoscience Ltd. and effective September 10, 2026, reports Indicated resources of 1,793 kilotonnes at 519 grams per tonne silver-equivalent (AgEq), comprising 376 grams per tonne silver (Ag) and 1.80 grams per tonne gold (Au), totaling 29.9 million ounces of AgEq. Inferred resources stand at 2,352 kilotonnes at 368 grams per tonne AgEq, comprising 266 grams per tonne Ag and 1.29 grams per tonne Au, totaling 27.9 million ounces of AgEq. The total resource stands at 57.8 million ounces of AgEq. Cutoff grades are set at 95 grams per tonne AgEq for the Santa Ana and Los Naranjos deposits, which utilize long-hole open stoping, and 130 grams per tonne AgEq for all other veins, which utilize cut-and-fill methods.

A release dated September 14, 2026, noted that Indicated ounces rose 23.5% and Inferred ounces rose 106.3% compared to the maiden estimate from June 2023. However, grades declined, with Indicated grades falling from 614 grams per tonne AgEq to 519 grams per tonne AgEq, and Inferred grades dropping from 435 grams per tonne to 368 grams per tonne. Tonnage growth is outpacing grade, a trend typical for expanding vein systems. The company has not yet conducted an economic study, and there are no Mineral Reserves or production history.

Infrastructure at the site includes highway access via Highway 43 to Falan, grid power from a high-voltage regional line crossing the La Ivanna property, water availability, and a local workforce of 130 employees, with 85% being local hires according to the investor presentation. Long-standing community programs include land access agreements covering 233 properties, as detailed in a December 2025 CEO letter.

The company also holds the non-core Kramer Hills gold project in California, which is optioned to Silver Mines, allowing the partner to earn an 80% interest. Regarding royalties, no information has been disclosed in provided materials. While Santa Ana is described as 100%-owned and the 22-hectare La Ivanna property is owned outright, no royalty, net smelter return (NSR), or third-party streaming arrangement is stated, and royalty-free status cannot be confirmed from the available data.