Southern Silver Closes First Tranche of Previously Announced Non-Brokered LIFE Private Placement

• Southern Silver Exploration Corp. closed the first tranche of its previously announced non-brokered private placement on June 15, 2026.
• The company issued 4,000,181 common shares at $0.55 per share, generating gross proceeds of approximately $2.2 million.
• Proceeds are earmarked for Phase 1 infill drilling (up to 12,500m) at the Puro Corazon target, updating the mineral resource estimate (scheduled Q2 2026), advancing engineering opportunities from the 2024 PEA, and general working capital.
• Finder's fees of $132,006 were paid, accompanied by 240,010 non-transferable warrants exercisable at $0.70 for 36 months. Trading of warrants and underlying shares is restricted until October 13, 2026.
• The closing remains subject to final TSX Venture Exchange approval.

Chronological Progression of Historical News: - October 2025: Southern Silver acquired the Puro Corazon claim and initiated a 12,000m drill program to test lateral extensions and depth targets, aiming to integrate results into an updated PEA by Q1 2026. - December 2025: The company closed a $6M bought-deal private placement at $0.50/share to fund project advancement. Concurrently, initial drill results from Puro Corazon returned bonanza-grade silver intercepts (up to 1,115 g/t AgEq), triggering a sharp price rally. - January-February 2026: Continued high-grade drill results extended mineralization to >360m depth, reinforcing the project's near-surface, high-grade potential. The stock peaked near $0.99 in late January. - March-April 2026: Final assay results from the 23-hole program were released, confirming lateral and vertical continuity. The company emphasized that results would feed into an updated Mineral Resource Estimate and revised PEA. - May 2026: Southern Silver announced a non-brokered private placement targeting up to $4M at $0.60/share, later amended on May 28 to $0.55/share to attract buyers amid a broader market pullback. - June 2026: The first tranche closed at $0.55, aligning with the amended price. The stock has since consolidated in the $0.43-$0.59 range.

• The financing is a routine execution of a previously announced capital raise. It was expected and follows a clear timeline from announcement (May 14) to amendment (May 28) to closing (June 15).
• The $0.55 issue price represents a discount to the stock's January highs and sits at the lower end of the recent trading range, indicating weak institutional demand or a need to incentivize participation.
• The capital is strictly allocated to funding the Puro Corazon drill program and resource update, which were already in progress. There is no new project catalyst, technology, or strategic partnership introduced.
• Dilution is present but manageable relative to the company's cash position and project stage. The primary impact is neutral-to-negative sentiment due to the depressed pricing and lack of immediate upside beyond existing plans.

• Southern Silver Exploration Corp. is focused on developing the Cerro Las Minitas (CLM) project, a 100% owned silver-lead-zinc deposit in Durango, Mexico.
• The flagship project features a high-grade skarn and carbonate replacement deposit (CRD) system.
• The recently acquired Puro Corazon claim (9 hectares) is integrated into the CLM property, offering near-surface, high-grade mineralization that complements the main skarn target.
• The 2024 Preliminary Economic Assessment (PEA) outlines robust life-of-mine economics: average AISC of US$13.23/oz AgEq, pre-tax NPV of US$888M, and IRR of 30%.
• The project benefits from zero royalties, strong infrastructure proximity, and community support.
• Additional early-stage assets include the Nazas project (Mexico) and the Oro and Hermanas projects (New Mexico, USA).