Silver X launches 40,000 m drill program at Recuperada

Executive Summary

• Silver X Mining Corp. has launched a 40,000-metre diamond drill program, the largest in the company's history, funded by recent bought deal financing proceeds.
• The company is targeting a production increase of at least 40%, aiming to reach 1,000 tonnes per day by Q2 2026, which would double current output.
• Strategic initiatives include the "Plan 100" cost reduction target of $100/tonne and exploration of high-grade satellite targets (RedSilver and Tangana West) to support long-term expansion toward a 3,000-tonne-per-day processing capacity.

Key Details

• Drill Program: Launch of a 40,000-metre diamond drill campaign focused on expanding and upgrading resources at the Nueva Recuperada district in Huancavelica, Peru.
• Funding: The program is supported by proceeds from a recently completed bought deal financing.
• Production Targets:
  • Current output is set to double, targeting 1,000 tonnes per day by Q2 2026.
  • The processing plant is undergoing permit adaptations to allow operation at up to 1,000 tonnes per day.
  • Long-term vision includes a 3,000-tonne-per-day processing capacity (outlined in the September 2025 Preliminary Economic Assessment).
  • Full expansion is expected to produce over 6.2 million ounces of silver (AgEq) annually.
• Cost Efficiency: Implementation of "Plan 100," aiming for combined operating and sustaining costs of $100 (U.S.) per tonne to position Silver X among Latin America's lowest-cost silver producers.
• Exploration Focus:
  • Drilling will test high-grade satellite targets, specifically RedSilver and Tangana West.
  • Identified grades at these targets range from 15 to 20 ounces per tonne, representing potential near-term production opportunities.
  • Objectives include increasing mineral resources, upgrading classifications, enhancing grade continuity, and identifying new high-grade silver zones.
• Operational Improvements:
  • Acceleration of underground infrastructure projects, including new ventilation systems and improved mine access.
  • Contractor-supported equipment upgrades to enhance safety, productivity, and efficiency.
  • Continued emphasis on selectivity, dilution control, and grade improvement to drive stronger cash flow and higher operating margins.
• Qualified Person: A. David Heyl, BSc, CPG, has reviewed and approved the technical content.

Notable Quotes

• "We have done the hardest part -- building a company during challenging times with limited access to capital," said Jose Maria Garcia, chief executive officer of Silver X Mining. "Now, with a stronger balance sheet and the largest exploration program in our history, we are positioned to capitalize on the current metal price environment and drive meaningful growth."
• "The funds raised will allow us to expand our resources, enhance our operations and unlock the full potential of the Nueva Recuperada district. With the quality of our assets, the expertise of our team and the momentum we've built, Silver X is entering a new phase -- one focused on scale, profitability and long-term value creation."