Southern Silver to acquire Puro Corazon mining claim

Executive Summary

• Southern Silver Exploration Corp. has secured the right to purchase the Puro Corazón mining claim adjacent to its wholly‑owned Cerro Las Minitas project in Durango, Mexico.
• The company will launch a 12,000‑metre infill drilling program at Puro Corazón immediately and target an updated technical report and Preliminary Economic Assessment (PEA) by Q1 2026.
• The acquisition is structured as cash payments over 40 months with no issuance of securities, aiming to boost resource growth, capital efficiency, and overall project economics.

Key Details

• Asset Acquired: Right to purchase the Puro Corazón mining claim (contiguous to Cerro Las Minitas).
• Current Operations at Puro Corazón: Privately operated mine processing ~60 t/day of ore into silver‑lead and zinc concentrates.
• Drilling Program: 12,000 m of infill drilling to commence immediately after acquisition.
• Timeline for Technical Work: Updated technical report and PEA preparation slated for Q1 2026, in accordance with NI 43‑101.
• Transaction Structure: Cash consideration payable over a 40‑month period following execution of a definitive assignment agreement; no securities issued.
• Strategic Benefits Highlighted:
• Near‑term resource growth through infill drilling and incremental resource additions.
• Capital efficiency gains by accessing higher‑grade, near‑surface mineralization earlier in the mine plan.
• Enhanced sequencing of the overall Cerro Las Minitas mine plan, potentially improving NPV and IRR.
• Synergies across permitting, environmental management, safety, and data collection.
• Management Comments:
• Lawrence Page KC (President) – “The acquisition … will allow us to derisk and accelerate the development of Cerro Las Minitas in a capital‑efficient manner, with significantly enhanced production profile and economics.”
• Robert Macdonald (VP Exploration) – Emphasized high‑grade, near‑surface targets and historic data that will feed into the updated PEA.

Notable Quotes

• “The acquisition of Puro Corazón will allow us to derisk and accelerate the development of Cerro Las Minitas in a capital‑efficient manner, with significantly enhanced production profile and economics.” – Lawrence Page KC, President
• “I am excited about the opportunity to begin drilling at Puro Corazón… we will be able to add significant value to the Cerro Las Minitas project.” – Robert Macdonald, Vice‑President of Exploration