SOMA GOLD ANNOUNCES US$10 MILLION NON-DILUTIVE SILVER ROYALTY TRANSACTION TO FUND GROWTH STRATEGY

Soma Gold Corp. has entered into a definitive agreement with Silver Crown Royalties Inc. to grant a silver royalty over the Cordero, La Ye, and Los Mangos mines in Colombia. The transaction provides US$10 million in non-dilutive capital, structured in two tranches: US$3 million at closing, expected November 30, 2026, and US$7 million upon discharge of existing financing security and registration of first-ranking security, expected by December 31, 2026.

The royalty is ring-fenced to payable silver from the specified projects, with a delivery threshold of 305,500 ounces before transitioning to a 7.5% Net Smelter Return for the life of the project. Minimum quarterly delivery obligations are set at 5,500 ounces for Q4 2026, 30,000 ounces for 2027, and 60,000 ounces annually from 2028 to 2031 until the threshold is met. A repurchase option is triggered if existing financing security is not discharged by December 31, 2026.

Management frames the deal as a strategic move to unlock value from silver, which represents approximately 1% of ongoing revenue, while preserving equity structure and funding growth priorities.

Soma Gold Corp. (SOMA) has secured a transaction providing C$10 million in non-dilutive capital, a move that extends the company's cash runway and funds growth capital expenditures without immediate equity dilution. The royalty agreement is strictly limited to silver from specific assets, representing approximately 1% of revenue, meaning the absolute margin impact is immaterial in dollar terms.

The structure is defensive in nature, with US$7 million contingent on discharging existing financing security, indicating a balance sheet reshuffle rather than pure greenfield growth funding. Minimum delivery obligations and a repurchase clause create a fixed cash outflow and contingent liability until the 305,500-ounce threshold is satisfied. The move signals liquidity pressure, consistent with the recent price collapse and prior cash drawdowns, but does not alter the core gold production thesis or reserve base.

Soma Gold Corp. operates the El Bagre Gold Complex in Antioquia, Colombia, which includes the Cordero, El Limon, Aurora, and Escondida mines. The company holds 100% ownership of these assets, which are situated within extensive concessions in the Otú Fault system and host high-grade epithermal gold veins.

The El Bagre Mill currently operates at a capacity of 450 tons per day, with permitted expansion capability up to 1,400 tons per day. Meanwhile, the El Limon Mill resumed operations in the third quarter of 2025. Soma Gold targets annual production of 60,000 to 65,000 AuEq ounces by 2028.