Capitan Silver Receives Key Drill Permit for the Cruz De Plata Project and Commences Drilling on Untested High-Priority Regional Targets

Executive Summary

• Capitan Silver Corp. has secured a key exploration permit at its Cruz de Plata project in Mexico, enabling drilling expansion beyond the previously permitted 2.5 km Jesus María Silver Trend to test new, untested high-priority targets to the east, northwest, and north.
• The company is actively executing a 60,000-metre multi-rig drill program (3 diamond, 1 RC), with the RC rig exclusively dedicated to rapidly and cost-effectively testing surface-grade targets, followed by diamond drilling to define zones and test depth.
• Recent grab and chip sampling from the new target areas has returned strong silver-gold intercepts, with assays pending for 57 drill holes, positioning the company for near-term catalysts as it tests a broader, system-wide geological thesis.

Key Details

• Permit & Target Expansion: New exploration permit allows drilling beyond the 2.5 km permitted strike length at the Jesus María Silver Trend to test untested targets on concessions recently acquired from Minera Fresnillo S.A. de C.V.
• Sample Highlights (Grab/Chip):
• Casco Norte: 4,291 g/t AgEq (62.1 g/t Au, 18.3 g/t Ag, 0.76% Cu)
• Jesus Maria East: 1,337.5 g/t AgEq (0.74 g/t Au, 1,364 g/t Ag)
• Jesus Maria Northwest: 2,268.1 g/t AgEq (27.5 g/t Au, 200 g/t Ag, 4.0% Pb, 2.2% Zn, 0.73% Cu)
• Drilling Program & Rig Allocation: 60,000-metre drill program underway with 4 active rigs (3 diamond/core, 1 RC). The RC rig is exclusively dedicated to untested high-priority targets to maximize metres drilled per day at lower cost. Future RC success will be followed by diamond drilling to define potential new zones and test depth.
• Geological Framework: Jesus María Silver Trend currently drilled on a 2.5 km strike to 400m down-dip. A new mineral system concept identifies a C-shaped pattern wrapping around a granodiorite intrusive, expanding cumulative strike length to over 8 km. Including radial and cross-cutting features (Peñoles Fault, Gully Fault, El Casco, El Tubo, La Providencia), cumulative strike length increases to 21 km.
• Upcoming Catalysts: Assays pending for 57 drill holes (31 core, 26 RC), with additional results arriving weekly.
• AgEq Calculation & Assumptions: AgEq = Ag g/t + (80x Au g/t) + (0.003 x Pb g/t) + (0.0037 x Zn g/t). Metal Recovery assumptions: Ag 94%, Au 86%, Pb 93.5%, Zn 92%. High grades have not been capped.
• QAQC & Laboratory Protocols: Field samples sent to Bureau Veritas Lab (Durango, Mexico) for prep. Surface samples analyzed via MA300 (4-acid digestion, multi-element), FA430 (Au Fire Assay), and MA370/AQ300 for overlimit/ICP finishes. QAQC program includes regular insertion of standards, blanks, and duplicates. Check assays performed at SGS laboratories in Durango, Mexico.

Notable Quotes

• Alberto Orozco, CEO: "We are very excited to be drilling these prospective, untested high-priority targets at Cruz de Plata. These recently permitted targets allow Capitan to extend its drilling beyond the 2.5 km Jesus Maria Silver Trend... The addition of these targets is significant because it enables the Company to test the broader mineralized system and true large-scale potential of the project."
• Alberto Orozco, CEO: "The RC drilling of these new target areas will follow on the proven exploration method Capitan applied in 2025... I believe using RC, which allows us to drill more metres in a shorter period of time and for a considerably lower cost, is the most intelligent and capital efficient approach to drill test these new targets, as risk is minimized."
• Alberto Orozco, CEO: "We have entered a very exciting stage in the evaluation of the Cruz de Plata mineral system as we are concurrently testing the full strike length of the system and testing the system at depth in the Jesus María Silver Trend. With four drill rigs now at work on our 60,000-metre drill program, our understanding of the mineral system will evolve very quickly"