Capitan Expands High-Grade Silver Mineralization to 600 Metres Down-Dip and Announces New CRD Discovery at Cruz De Plata

Capitan Silver Corp. (CAPT) has released assay results from 22 drill holes targeting Areas A and B as part of its 60,000-square-meter 2026 program at the Cruz de Plata project in Durango, Mexico. Assays remain pending for an additional 80 holes, comprising 22 core and 58 reverse circulation (RC) samples.

The headline result came from hole 26-ERDD-49, the deepest hole on the property at approximately 600 meters down-dip. It returned 1,639.3 g/t AgEq over 0.9 meters (959 g/t Ag, 0.62 g/t Au, 2.72% Cu, 12.26% Pb, 7.96% Zn), along with 883.8 g/t AgEq over 0.5 meters within a wider 9.3-meter interval averaging 155.41 g/t AgEq.

Other notable intercepts include:

• Hole 26-ERDD-32: 1,142.01 g/t AgEq over 0.9 meters inside 4.1 meters at 330.2 g/t AgEq; the lower zone returned 315.9 g/t AgEq over 1.1 meters inside 5.6 meters at 230.1 g/t AgEq.
• Hole 26-ERDD-35: 676.8 g/t AgEq over 1.4 meters and 599.5 g/t AgEq over 1.1 meters.
• Hole 26-ERDD-34: 411.4 g/t AgEq over 1.0 meter inside 8.5 meters at 212.2 g/t AgEq.
• Hole 26-ERDD-19: 363.6 g/t AgEq over 2.4 meters inside 3.4 meters at 290.5 g/t AgEq and 551.3 g/t AgEq over 1.0 meter.
• Target B: Hole 26-SRDD-01 returned 572.4 g/t AgEq over 0.3 meters and 302.8 g/t AgEq over 0.9 meters inside 7.1 meters at 90.80 g/t AgEq; hole 26-SRRC-31 returned 240 g/t AgEq over 3.0 meters inside 6.1 meters at 154.3 g/t AgEq.

Geological analysis of holes 26-ERDD-49 and 26-ERDD-32 identified replacement-style, massive-sulphide CRD mineralization. This is interpreted as a separate, later mineralizing event overprinting the intermediate-sulphidation epithermal silver system. Previously reported CRD intervals include JM_DD_13_06 (3,532 g/t AgEq over 0.9 meters) and 26-JMDD-09 (1,366.3 g/t AgEq over 1.1 meters).

Technical parameters for the report include a 25 g/t AgEq cut-off and internal dilution capped at 3 meters. True width is estimated at 70-90% of drilled width on the Jesús María Trend, though this remains unknown at new targets. High grades were uncapped, and the AgEq formula disclosed recoveries of 94% for Ag, 86% for Au, 93.5% for Pb, 92% for Zn, and 75.7% for Cu.

Capitan Silver Corp. (CAPT) has released results from its latest drilling program at the Capitan Hill oxide gold deposit, which currently holds an inferred resource of 525,000 ounces of gold and 4.24 million ounces of silver. The company, which has a market capitalization of approximately C$245 million, stated that a maiden silver resource for the silver system remains a stated goal.

The drilling extended the demonstrated vertical extent of mineralization from approximately 400 meters to roughly 600 meters down-dip, marking the deepest-ever intercept at that location. This extension was corroborated up-dip on the same section. The results also confirmed that copper tenor rises at depth, reaching 2.72% copper, which is consistent with the hotter part of the system. Geologically, the company outlined a coherent two-event model involving epithermal and CRD overprint, which broadens the exploration target type on the property.

The best intercept recorded was 1,475 g.m, a figure essentially in line with immediately preceding anchor results on Target A. These prior results included 26-ERDD-13 at 756.6 x 2.0 = 1,513 g.m; 26-ERDD-14 at 1,123.6 x 1.0 = 1,124 g.m; and 26-ERDD-08 at 934.6 x 1.3 = 1,215 g.m. These figures remain below older shallow RC bonanzas, specifically 25-ERRC-12 at 2,571 x 1.5 = 3,857 g.m and 25-ERRC-38 at 2,451 x 1.5 = 3,677 g.m. The delta versus the September 14 anchor, 26-JMDD-09 at 1,363.1 x 1.1 = 1,499 g.m, was flat to marginally negative on gram-metres.

At Target B, the first-pass diamond drilling largely failed to replicate the September "new high-grade zone," with SRDD-02 and SRDD-03 returning near-barren results attributed to dyke displacement. The best Target B result was well below the September Target B anchor.

Following the September 14 release, the stock produced a brief pop from $2.07 on September 14 to $2.39 on September 21, which fully faded back to $2.05 by September 29 and $1.90 by October 16. The stock sits mid-range between a $2.55 March high and a $1.41 November 2025 low, having gone nowhere since the December 2025 financings at $2.03. The >150 m step-out to 600 m was explicitly telegraphed in the programme plan, and the airborne MT survey already indicated structural continuity to >1.5 km.

This is not an earnings release, so no revenue, margin, or segment teardown applies. Prior-period context for backdrop includes a net loss of C$1.84 million for the nine months ended June 30, 2026, with cash of C$21.8 million, no debt, working capital of C$21.7 million, and exploration capex of C$7.97 million for the nine months. Management states funding covers at least 12 months. All of that is prior-period, not disclosed in today's release.

Capitan Silver Corp. (TSXV: CAPT, OTCQX: CAPTF) is led by CEO Alberto Orozco, VP Exploration Marc Idziszek (QP), and CFO Rob Scott. The company’s flagship asset is the 100%-owned Cruz de Plata silver-gold project in Durango, Mexico, situated in the primary Mexican silver belt. The property features paved highway access, grid power, and an existing community agreement valid through 2030. It holds royalty-free status following the buyback of the Altiplano NSR for US$1M.

The project comprises two distinct assets: the Jesús María silver Trend and the Capitan Hill oxide gold deposit. The Jesús María Trend is characterized by intermediate-sulphidation epithermal silver, with a newly interpreted CRD massive-sulphide overprint, though no resource has been defined for this portion. The Capitan Hill deposit holds a pit-constrained inferred resource of 39.795 Mt @ 0.41 g/t Au and 3.3 g/t Ag for 525 koz Au and 4.24 moz Ag. This estimate was calculated at a 0.18 g/t Au cutoff, using US$2,500/oz Au and US$26.5/oz Ag prices, with 70% Au and 45% Ag recovery. The estimate was prepared by APEX Geoscience and is effective as of 2025-10-14.

Capitan Silver expanded its land package by approximately 85% through the acquisition of seven concessions from Minera Fresnillo. This acquisition extends the trend from 2.5 km to 3.7 km and broadens the system concept to 21 km of cumulative strike. A US$2.0M second instalment for these acquisitions is payable by 2027-08-21.

The company has outlined a drilling programme of 60,000 m for 2026, which is four times the 2025 programme, utilizing four rigs (three core and one RC). The property also contains more than 25,000 m of historic drilling.

As of 2026-06-30, Capitan Silver reported a balance sheet with C$21.8M in cash, total current liabilities of C$0.42M, nil total debt, and total equity of C$52.1M, resulting in a book value of approximately C$0.41 per share. Fundraising in December 2025 and January 2026 totalled approximately C$29M at a price of C$2.03. The company has 128,724,521 shares outstanding, with the top three shareholders holding approximately 37%. Capitan Silver currently has no revenue and no mine.