Silver Storm Commences Rehabilitation Activities at La Parrilla

On October 21, 2025, Silver Storm Mining announced that it has commenced rehabilitation activities at its 100%-owned La Parrilla Silver Mine Complex in Durango, Mexico. The key activities include: - Processing plant rehabilitation and expansion of the sulphide circuit capacity by 25% to 1,250 tonnes per day. - Underground rehabilitation work. - Ordering of long-lead items, including flotation cells and a cyclone, with expected delivery by December 2025. - Engagement of SRK Consulting to review the restart plan.

The company estimates the rehabilitation and preparation activities will take seven to nine months, and it is targeting a potential restart of operations as early as the second quarter of 2026. The news release includes a standard disclaimer that no preliminary economic assessment, pre-feasibility, or feasibility study has been completed, and no mineral reserves have been established.

The news is a positive and logical progression of the company's stated strategy. After successfully completing multiple significant financings and securing a US$7.0 million offtake agreement with Samsung C&T, the commencement of rehabilitation work is the expected next step. It transitions the company's story from financing and de-risking to execution.

However, the impact is rated as "Routine - Positive" rather than "Material." The market was anticipating this news as the explicit use of proceeds from recent capital raises was for this exact purpose. The material de-risking events were the C$13.76 million bought deal financing in September and the Samsung offtake financing in early October. This announcement simply confirms that the company is now deploying that capital as planned.

The key takeaway is that the project is now moving forward towards production, with a tangible timeline. The primary risk profile shifts from financing risk to execution risk. A critical point of concern, highlighted in the news release's disclaimers, is the company's decision to advance to production without a formal economic study (PEA, PFS, or FS). This is a high-risk strategy, as the project's economics have not been publicly vetted through an independent engineering study, making potential returns and capital costs less certain.

Silver Storm Mining Ltd. is a Canadian-based mining company focused on restarting its 100%-owned La Parrilla Silver Mine Complex in Durango, Mexico. La Parrilla is a past-producing underground silver mine that was operated by First Majestic Silver until it was placed on care and maintenance in September 2019. The complex includes a 2,000-tonne-per-day dual-circuit processing facility (oxide and sulphide), five underground mines, and an open pit.

Since acquiring the project, Silver Storm has focused on exploration to expand the resource base and has recently transitioned to financing and refurbishment with the goal of restarting production. In February 2025, the company announced an updated NI 43-101 Mineral Resource Estimate, highlighting a 107% increase in Indicated Resources to 10.8 Moz AgEq and a 58% increase in Inferred Resources to 16.3 Moz AgEq.