DENARIUS METALS ANNOUNCES US$7 MILLION UPSIZING OF ITS PREPAYMENT FACILITY WITH TRAFIGURA TO FUND EXPLORATION AND THE ACCELERATION OF DEVELOPMENT ACTIVITIES AT ITS ZANCUDO PROJECT

Executive Summary

• Denarius Metals upsized its prepayment facility with Trafigura from US$9 million to US$16 million, securing up to US$7 million in additional financing to fund exploration drilling and accelerate development at the Zancudo Project.
• The company received US$3.5 million from the Third Advance this week, bringing total proceeds to US$9 million (including US$500,000 in capitalized interest), and outlined specific 20- to 26-month repayment schedules tied to production.
• In conjunction with the facility upsizing, Denarius agreed to issue 3,000,000 common share purchase warrants to Trafigura at a CA$1.00 exercise price, expiring December 8, 2028, subject to regulatory approval and a statutory hold period.

Key Details

• Facility Upsizing & Proceeds: Prepayment agreement with Trafigura increased from US$9,000,000 to US$16,000,000, unlocking up to US$7,000,000 in additional financing.
• Use of Proceeds: Funds will finance the current exploration drilling campaign at Zancudo and accelerate development of a new portal and 600-meter ramp at the Las Brisas-Manto Antiguo area to enable mining front exploitation by mid-2027.
• Cash Received & Total Financing: US$3,500,000 received this week from Trafigura under the Third Advance. Total financing received to date: US$9,000,000 (includes US$500,000 capitalized interest during the Grace Period ending June 30, 2026).
• Repayment Schedule (First & Second Advances): US$5,000,000 total; repaid with interest from production over a 26-month period commencing July 1, 2026.
• Repayment Schedule (Third Advance): US$4,000,000; repaid with interest from production over a 20-month period commencing January 1, 2027.
• Repayment Schedule (Fourth Advance): Up to US$7,000,000; may be drawn in one or more tranches over six months ending December 31, 2026. Repaid with interest from production over a 20-month period commencing January 1, 2027. Amount is inclusive of capitalized interest on Third and Fourth Advances from July 1, 2026 to December 31, 2026.
• Warrant Terms: 3,000,000 common share purchase warrants issued to Trafigura at a CA$1.00 exercise price, expiring December 8, 2028. Subject to a statutory four-month hold period and final Cboe Canada approval.
• Early Production & Of take Context: Long-term commercial agreement (signed April 2024, amended 2025) covers 100% of high-grade Au-Ag concentrates from the new 1,000 tpd processing plant (expected Q3 2026) and crushed ore during early production.
• Q1-Q2 2026 Shipment Metrics: April and May 2026 mining progress enabled shipment of 2,162 tonnes to a local port for Trafigura. Grades averaged 11.4 g/t Au and 222.3 g/t Ag, containing ~795 oz Au and ~15,457 oz Ag.
• Payable Metal Production: Q2 2026 (first two months): 540 oz Au, 5,580 oz Ag. Q1 2026: 593 oz Au, 7,839 oz Ag. Total for first five months of 2026: 1,133 oz Au, 13,419 oz Ag. Full year 2025: 333 oz Au, 5,749 oz Ag.