Kootenay Silver Announces Positive PEA with a US$763 Million After-Tax NPV & 41% IRR for La Cigarra Silver Project

Executive Summary

• Kootenay Silver announced a positive Preliminary Economic Assessment (PEA) for its 100%-owned La Cigarra Silver Project in Chihuahua, Mexico, demonstrating strong project economics and a clear development pathway.
• The PEA outlines a 14-year open-pit mine life with a $763 million after-tax NPV (5% discount rate) and a 41% internal rate of return (IRR) at consensus metal prices, alongside a rapid 1.9-year after-tax payback period.
• The project targets a life-of-mine production of 63.6 million payable ounces of silver, with average annual production of 6.22 million ounces over the first five years, supported by significant exploration upside along a 9-kilometre mineralized trend.

Key Details

• Project Economics: After-tax NPV of $763M at consensus prices ($50/oz Ag); $1,295M NPV and 64% IRR at spot prices. Pre-tax NPV is $1,265M with a 55% IRR and 1.7-year payback.
• Capital & Cost Structure: Initial capital cost of $332.2M (including closure deposit); Sustaining capital of $79.7M; Total LOM capital of $378.6M. Average all-in sustaining cost (AISC) is $18.73/oz Ag, with an operating cash cost of $16.85/oz AgEq.
• Production Profile: 14-year mine life; 6,000 tonnes per day (t/d) processing rate; 63.66M koz total payable silver; 27.3 koz gold; 45.3 Mlb lead; 48.5 Mlb zinc. Average LOM annual payable silver: 4.55M oz. Years 1-5 average annual production: 6.22M oz. Average silver recovery: 89.3%.
• Mineral Resources (April 4, 2026): Measured + Indicated: 23.02 Mt @ 81 g/t Ag, 0.06 g/t Au, 0.14% Pb, 0.19% Zn (93 g/t AgEq) containing 60.02 Moz Ag. Inferred: 6.78 Mt @ 79 g/t Ag, 0.05 g/t Au, 0.15% Pb, 0.17% Zn (90 g/t AgEq) containing 17.25 Moz Ag. Base-case cut-off grade: 30 g/t AgEq.
• Development Plan: Conventional open-pit mining, crushing and grinding circuits, flotation and leaching process plant, tailings and water management facilities, and progressive mine development.
• Upside & Next Steps: Exploration upside remains along a 9-km trend. Next steps include initiating resource expansion drilling, advancing environmental baseline studies, conducting geotechnical and hydrogeological investigations, evaluating a Feasibility Study, and continuing stakeholder engagement and permitting activities.
• Technical Reporting: Full NI 43-101 technical report to be filed on SEDAR+ within 45 days. Qualified Persons include representatives from Sacré-Davey Engineering, SGS Canada, AKF Mining Services, Canenco Consulting, and Knight Piésold.

Notable Quotes

• James McDonald, President and CEO: "The Preliminary Economic Assessment marks a significant milestone in advancing La Cigarra toward development. The 14-year mine life, strong annual production, and IRR demonstrate the potential for a long-life silver operation in one of Mexico's premier mining districts... We believe the combination of attractive economics, substantial resource-growth potential, existing infrastructure, and strong silver market fundamentals, positions La Cigarra as a compelling development asset..."
• Ken Berry, Chairman: "This study validates our strategy of advancing our portfolio of silver assets through the development pipeline. With La Cigarra now supported by a positive PEA, we are evaluating the next steps to unlock additional value through resource expansion, engineering optimization, and advancement toward permitting and feasibility engineering."