AbraSilver Intersects 75 Metres of 2.44 g/t Gold and 106 g/t Silver at Oculto; 253 Metres of 0.54 g/t Gold at Oculto East

AbraSilver Resource Corp. (ABRA) has reported results from two diamond drill holes from the Phase VI programme at the Oculto deposit, located at Diablillos in Salta and Catamarca, Argentina. The reported widths are drilled widths, with true widths explicitly unknown. The intervals are uncut and undiluted, with no cutoff grade stated.

• DDH-26-064 (infill, inside the planned Oculto pit): 75.0 m @ 2.44 g/t Au and 106.3 g/t Ag from 220.0 m downhole, oxide. Includes 8.0 m @ 5.94 g/t Au / 63.5 g/t Ag from 228.0 m and 7.0 m @ 7.97 g/t Au / 78.3 g/t Ag from 252.0 m.
• DDH-26-064, separate shallower interval: 5.0 m @ 556.4 g/t Ag (0.18 g/t Au) from 158.0 m, oxide; plus 2.0 m @ 119.6 g/t Ag from 170.0 m and 3.0 m @ 0.96 g/t Au from 110.0 m.
• DDH-26-064, sulphide tail: 16.5 m @ 1.50 g/t Au, 11.1 g/t Ag, 0.44% Cu from 310.0 m, below the base of oxidation.
• DDH-26-063A (eastern extension, toward Oculto East): 253.0 m @ 0.54 g/t Au and 9.8 g/t Ag from 116.0 m to 369.0 m downhole, oxide. Includes only 4.0 m @ 2.24 g/t Au from 229.0 m.

The release noted that three rigs are currently active, with Phase VI expected to finish by year-end. An updated mineral resource estimate is targeted for Q2/2027, with a heap leach preliminary economic assessment expected "shortly" and a final investment decision targeted for Q2/2027. Table 1 flags only intercepts above 25 gram-metres Au or 2,000 gram-metres Ag, a reporting threshold rather than a cutoff.

AbraSilver Resource Corp. (ABRA) is a development company with a completed Definitive Feasibility Study (DFS) for its Oculto project, which outlines an after-tax NPV5% of US$3.0 billion (C$4.2 billion), an internal rate of return (IRR) of 41.9%, and an initial capital expenditure of US$722 million. The project features a 25-year mine life, a 9,000 tonnes per day tank leach operation, and a targeted financial close (FID) in the second quarter of 2027. The company holds a Proven and Probable (P&P) reserve of 77.9 million tonnes at 146 grams per tonne silver-equivalent (g/t AgEq), has secured all principal provincial environmental approvals, benefits from RIGI fiscal stability, and raised approximately C$52 million in July 2026. At a market capitalization of roughly C$1.88 billion, the equity is priced based on the DFS, financing path, and FID decision rather than recent infill drilling results.

Recent drilling has improved confidence in the mine plan at Oculto. A 75-meter interval averaging approximately 2.5 times the reserve grade was encountered inside the designed pit, intersecting all three mineralized horizons. This result de-risks the early-year high-grade schedule. The scale of the system remains essentially unchanged, as the eastern step-out is low grade and does not add a new high-grade center, adding only areal extent of marginal material. Additionally, the oxide depth is mildly positive for the heap-leach thesis, with 253 meters of continuous oxide identified.

The most significant recent result is drill hole DDH-26-061, published on October 21, 2026, which returned 228.0 meters at 1.79 grams per tonne gold (g/t Au), including 66.0 meters at 4.04 g/t Au. This intersection is located below the pit design and outside the current resource model. The step-out is materially weaker than this anchor hole in grade-and-width substance.

Market reaction to the October discovery hole has been muted. The stock closed at C$11.29 on October 20, 2026, spiked to C$12.70 on the release date (+12.5%), and then reversed the move, closing at C$11.79 the following session and falling to C$10.05 by October 30, 2026. The stock currently trades at C$11.35, essentially at the level it traded before the anchor hole announcement. This is approximately 40% below its May 2026 high of C$19.02.

The release serves as a confirmation of grade where the mine plan requires it, supported by adequate QA/QC procedures. It does not alter the net asset value (NAV), reserves, mine life, or financing path.

AbraSilver Resource Corp. (TSX: ABRA, OTCQX: ABBRF) is a silver-gold development company focused on its core asset, the 100%-owned Diablillos project in the Puna region of Salta and Catamarca, Argentina. The project features over 170,000 meters of drilling across multiple shallow oxide silver-gold centers, including Oculto, JAC, Laderas, and Fantasma, as well as emerging targets Cerro Viejo and Condoryacu, all situated over a porphyry complex. The company’s adjacent land package was expanded by approximately 6,200 hectares in 2026 for roughly US$4.65 million.

According to the Mineral Resource Estimate (MRE) as of April 30, 2026, Diablillos holds measured and indicated resources of 231.98 million tonnes grading 33 grams per tonne silver, 0.34 grams per tonne gold, and 61 grams per tonne silver-equivalent, containing 248 million ounces of silver, 2.54 million ounces of gold, and 454 million ounces of silver-equivalent. This resource is split between tank leach material of 102.0 million tonnes at 65 grams per tonne silver and 0.62 grams per tonne gold (119 grams per tonne silver-equivalent), and heap leach material of 130.0 million tonnes at 8 grams per tonne silver and 0.12 grams per tonne gold (16 grams per tonne silver-equivalent). Additionally, there are inferred resources of 49.3 million tonnes at 32 grams per tonne silver-equivalent.

Reserves, calculated for tank leach material only, stand at 77.9 million tonnes grading 0.70 grams per tonne gold and 73 grams per tonne silver (146 grams per tonne silver-equivalent), containing 1.8 million ounces of gold, 184 million ounces of silver, and 366 million ounces of silver-equivalent.

A definitive feasibility study (DFS) completed in June 2026 outlines a 9,000 tonnes per day tank leach operation with a 5.9:1 strip ratio and a 25-year mine life. At silver prices of US$50 per ounce and gold prices of US$3,650 per ounce, the project projects an after-tax net present value at a 5% discount rate of US$3.0 billion (C$4.2 billion) and an internal rate of return of 41.9%. The study indicates a life-of-mine all-in sustaining cost of approximately US$19.89 per ounce silver-equivalent, an initial capital expenditure of US$722 million, and a payback period of 1.7 years, resulting in an NPV-to-capex ratio of 4.2x. Production is targeted at 20 million ounces of silver-equivalent per year in years one through five, averaging 10 million ounces per year for the life of the mine. First production is targeted before the end of 2029, with a final investment decision expected in the second quarter of 2027.

Permitting progress includes environmental impact assessment approvals from both Salta and Catamarca provinces. The company received RIGI approval in March 2026, securing a 25% corporate tax rate, 0% export duties, and 30-year fiscal stability. Engineering is advancing through a bridging-engineering long-term notice to proceed with Worley.

AbraSilver also holds a second asset, the La Coipita project in San Juan, under an earn-in joint venture with Teck. Teck has spent approximately US$23 million across 11,270 meters of drilling toward its US$20 million earn-in commitment; upon completion, the arrangement will form an 80/20 Teck/AbraSilver joint venture. The best intercept to date from hole DDH-LC26-010 returned 747.5 meters at 0.69% copper, 0.06 grams per tonne gold, and 142 parts per million molybdenum.

Prior-period financial data for the nine months ended September 30, 2025, showed selling, general, and administrative expenses of C$10.3 million, a net loss of C$38.5 million, and an operating cash outflow of C$30.8 million. The company held C$12.9 million in cash and C$51.0 million in total equity across 152.7 million shares outstanding. The company subsequently recapitalized, raising approximately C$52 million in July 2026 through a C$50.0 million bought deal at C$14.70 and a C$2.05 million private placement to Kinross, adding to earlier raises in 2024 and 2025. The company estimates its net cash position at approximately C$70 million in its investor presentation.