AbraSilver Drills Best Gold Intercept to Date at Oculto: 228 Metres Grading 1.79 g/t Gold In Oxides, Including 66 Metres at 4.04 g/t Gold

AbraSilver Resource Corp. (ABRA) released assay results from four diamond drill holes at the Oculto East target, part of the Phase VI program at its 100%-owned Diablillos silver-gold project in Salta and Catamarca, Argentina. The most significant intercept came from hole DDH-26-061, which returned 228.0 meters grading 1.79 g/t gold and 12.1 g/t silver starting at 101.0 meters downhole, consisting entirely of oxide material.

Nested within this interval, the company reported 66.0 meters grading 4.04 g/t gold and 19.1 g/t silver from 263.0 meters. A further nested section within that interval returned 11.0 meters grading 15.97 g/t gold and 47.6 g/t silver from 276.0 meters. The company noted that widths represent drilled widths, true widths are unknown, assays are uncut and undiluted, and no cutoff grade is stated.

The remaining three holes returned nominal gold grades. DDH-26-051 returned 50.5 meters at 0.25 g/t gold and 10.0 meters at 0.60 g/t gold, along with silver-only intervals of 22.0 meters at 64.8 g/t silver and 14.0 meters at 36.6 g/t silver. DDH-26-052 returned 15.0 meters at 0.17 g/t gold and 41.0 meters at 0.22 g/t gold. DDH-26-058 returned 7.0 meters at 0.48 g/t gold and 10.5 meters at 0.28 g/t gold. The company stated that the high-grade core sits approximately 50 meters below the current open pit design and outside the current Mineral Resource model.

Phase VI of the program has completed approximately 13,500 meters in 51 holes since January 2026, plus 2,000 meters in 13 condemnation holes. Three rigs are currently active, with Phase VI expected to complete by year-end. An updated Mineral Resource estimate is guided for Q2/2027, a Heap Leach Preliminary Economic Assessment is expected in the coming weeks, and the Final Investment Decision on Phase 1 remains on schedule for Q2/2027.

AbraSilver Resource Corp. (ABRA) is conducting an exploration step-out within the operating DFS mine-plan area at Diablillos. This is not a discovery hole, nor is it an infill hole that changes reserve classification. The company is in the development stage, with Diablillos having completed a DFS that projects an after-tax NPV5% of US$3.0B / C$4.2B at base case, a 41.9% IRR, a 25-year LOM, a 9,000 tpd tank leach operation, and initial capex of US$722M. Reserves stand at 77.9 Mt @ 146 g/t AgEq (184 moz Ag, 1.8 moz Au).

At a C$1.87B market cap, one exploration hole outside the mine plan cannot, by itself, move reserves, mine life or NAV. The DFS pit design is already fixed, and deepening beyond the design to chase a 66 m zone ~50 m below the pit would add strip. Capturing it may require underground or a pit pushback, neither of which is studied. The realistic path to value is the Q2/2027 Mineral Resource update and any Phase 2 expansion, including a heap leach PEA in the coming weeks and plant debottlenecking scenarios.

The stock has round-tripped from $5.76 (Oct 21, 2025) to $19.02 (May 13, 2026) on the resource upgrade, RIGI approval, permitting and DFS, then back down to $11.29 — roughly -40% from the high. The drill story is therefore not embedded in the current price. A hole that is materially better than anything previously demonstrated on the property, comes from below the pit design and outside the resource boundary, and is not priced, is a genuine positive. However, the magnitude is capped by the company's size, the fact no resource update lands until Q2/2027, and the FID/financing news flow that dominates the equity.

AbraSilver Resource Corp. (TSX: ABRA; OTCQX: ABBRF) is a silver-gold development company focused on its 100%-owned Diablillos silver-gold project, located on the Salta/Catamarca border in the Puna region of Argentina across approximately 15 contiguous concessions. The project hosts Proven & Probable Reserves of 77.9 Mt @ 146 g/t AgEq (184 moz Ag, 1.8 moz Au) and Measured & Indicated Mineral Resources of 232 Mt @ 33 g/t Ag, 0.34 g/t Au (454 moz AgEq). These resources are split into tank-leach (102 Mt @ 65 g/t Ag, 0.62 g/t Au) and heap-leach (130 Mt @ 8 g/t Ag, 0.12 g/t Au) categories, with Inferred resources totaling 49.3 Mt @ 12 g/t Ag, 0.26 g/t Au.

A completed DFS outlines a 9,000 tpd tank-leach open pit with a 25-year mine life. The project economics include a US$3.0B after-tax NPV5% (C$4.2B), a 41.9% IRR, and a life-of-mine AISC of approximately US$20/oz AgEq. Initial capital expenditure is estimated at US$722M, with first production targeted before year-end 2029 and a final investment decision (FID) planned for Q2/2027. Argentina's RIGI fiscal regime was approved in March 2026, establishing a 25% corporate tax and 0% export duties.

The company’s secondary asset is La Coipita in San Juan, held under an earn-in option/JV with Teck. Teck has completed approximately US$23M of work, with an 80/20 Teck/AbraSilver JV set to form upon completion. AbraSilver has US$1.5M in cash remaining to be spent by Jan 31, 2028. Notable shareholders include Eric Sprott (~8%), Helikon (~7%), and Kinross Gold (~4%).