VIZSLA SILVER AWARDS EQUIPMENT SUPPLY AGREEMENT FOR PANUCO

Executive Summary

• Vizsla Silver Corp. has awarded a major equipment supply agreement to FLSmidth for its wholly-owned Panuco silver-gold project in Sinaloa, Mexico.
• The contract covers engineering and supply of eight major process plant equipment packages, supporting both the initial 3,300 tpd Phase 1 operation and a planned expansion to 4,000 tpd.
• A limited notice to proceed (LNTP) has been executed to begin early engineering and procurement while definitive contract terms are finalized, with a formal Notice to Proceed expected in the coming months.

Key Details

• Contract Award: Equipment Supply Agreement awarded to FLSmidth ("FLS") for the Panuco project.
• Scope of Work: Engineering and supply of major process plant equipment spanning the entire proposed flowsheet from the 2025 Feasibility Study.
• Equipment Packages: Covers eight major packages across crushing, grinding, thickening, counter-current decantation, Merrill Crowe, and refining circuits.
• Capacity & Expansion: Equipment specified to support initial 3,300 tpd Phase 1 and planned expansion to 4,000 tpd.
• Future Integration: Contract structure and equipment configuration designed to facilitate future integration of the Napoleon mine in Year 4 with minimal operational downtime.
• Notice to Proceed: Parties entered into a limited notice to proceed (LNTP) authorizing early engineering and procurement activities while definitive terms are finalized.
• Timeline: Engineering work commencing immediately; formal Notice to Proceed anticipated in the coming months to initiate equipment manufacturing.
• Service Offering: FLS will provide a Life-Cycle Service Offering to support commissioning, ramp-up, and operations phases.
• Feasibility Study Metrics (Nov 2025): 17.4 Moz AgEq annual production over a 9.4-year mine life, after-tax NPV(5%) of US$1.8B, 111% IRR, and 7-month payback at US$35.50/oz Ag and US$3,100/oz Au.
• Development Status: No production decision has been made; construction decision will follow completion of detailed engineering, financing arrangements, and receipt of all required permits and approvals.

Notable Quotes

• Simon Cmrlec, Chief Operating Officer, Vizsla Silver: "The award of this major equipment package to FLS represents a key procurement milestone for the Panuco Project... supports both the initial Phase 1 plant design and future Phase 2 expansion plans while remaining in line with the process plant capital budget outlined in the Feasibility Study. FLS's Life-Cycle Service Offering will provide us with a high level of support throughout the commissioning, ramp-up and operations phases of the Panuco facility."
• Qasim Abrahams, Products Business Line President, FLSmidth: "We are excited to be selected as Vizsla Silver's key technology partner for their complete silver processing flowsheet. With our leading technologies and life-cycle service offerings, we look forward to helping Vizsla Silver maximize silver recovery and production throughout the life cycle of this new operation."