Southern Silver Announces Non-Brokered LIFE Private Placement for Gross Proceeds of up to C$4.0 Million

Southern Silver Exploration Corp. announced a non-brokered private placement of up to 6,666,666 common shares at C$0.60 per share, targeting gross proceeds of up to C$4.0 million. The proceeds are earmarked for a 12,500-metre infill drill program on the Puro Corazon claim, an updated mineral resource estimate (planned for Q2 2026), advancement of engineering opportunities identified in the 2024 PEA, and general working capital. The offering is not underwritten; the company may pay finders’ fees in cash and non-transferable warrants. Closing is expected on or about June 5, 2026.

The financing is incremental and expected. The company has been funding an aggressive drill program at Puro Corazon and had previously guided that an updated Mineral Resource Estimate and revised PEA would follow the completion of the 23‑hole program and the incorporation of its results. This C$4.0M raise is a relatively small top‑up following earlier, larger raises (C$15M in July 2025, C$6M in December 2025). The offering price of C$0.60 per share represents a 20% premium to the December 2025 bought‑deal price of C$0.50, and is at or near the current trading range—a modestly positive signal of market support, but not a material change in the company’s outlook. No warrants are attached to the common shares (other than potential finder warrants), which is slightly more shareholder‑friendly than the previous unit offering. Overall, the announcement does not alter the fundamental narrative; it is routine housekeeping that provides capital to complete a planned resource update.

Southern Silver Exploration Corp. is a junior mining company focused on advancing its 100%‑owned Cerro Las Minitas (CLM) project in Durango, Mexico — a high‑grade, polymetallic (Ag‑Pb‑Zn) skarn/CRD deposit. The 2024 Mineral Resource Estimate delineated 302 Moz AgEq in Indicated + Inferred resources at an average grade of ~256 g/t AgEq. A Preliminary Economic Assessment (2024) outlined a robust underground mining scenario with pre‑tax NPV US$888M, IRR 30%, initial capex US$388M, and average annual production of 14.4 Moz AgEq over the first 8 years. The project has zero royalties, strong infrastructure, and community support.

In September 2025, Southern Silver acquired the right to purchase the adjacent Puro Corazon claim (9 ha), which hosts a small operating mine (~60 t/d) and is integrated into the CLM plan to improve capital efficiency and mine sequencing. Drilling at Puro Corazon returned bonanza‑grade intercepts (e.g., 10.5m @ 1,115 g/t AgEq). The company also holds early‑stage exploration projects (Nazas, Oro, Hermanas) that are not currently material.