Capitan starts 60,000 m drill program at Cruz de Plata

Executive Summary

• Capitan Silver Corp. announced a significant expansion of its exploration activities, commencing a 60,000-metre multi-rig drilling program at its Cruz de Plata project for 2026, representing a 400% increase over the 2025 program.
• The company provided a comprehensive 2025 year-in-review, highlighting the successful closure of two financings totaling $29 million, the removal of the main Altiplano royalty, and the consolidation of its land package with Fresnillo.
• Key operational milestones included the filing of a NI 43-101 technical report for the Capitan Hill gold deposit and the announcement of high-grade silver intercepts from the 2025 drilling campaign, alongside the engagement of a market maker for 2026.

Key Details

• 2026 Drilling Program:
  • Total planned drilling: 60,000 metres.
  • Rig configuration: Ramp-up from one RC rig to four rigs total (three core rigs, one RC rig).
  • Focus areas:
    • Jesus Maria Silver Trend: Core drilling to extend mineralization down dip, along strike, and define high-grade zones (Gully fault and Penoles fault targets).
    • New Targets: RC drilling at Casco Norte, La Purisima, and Jesus Maria Northwest.
    • Capitan Hill Gold Deposit: Infill core drilling to convert inferred resources to measured and indicated.
    • Gold Opportunities: First-pass shallow RC drilling at La Providencia and El Tubo.
  • Additional activities: Prospecting, mapping, mechanical trenching, and results from a property-wide airborne geophysical survey expected in H1 2026.
• 2025 Financial & Corporate Updates:
  • Financing: Closed two financings in December 2025 totaling $29 million from institutional investors, including Jupiter Silver and Gold Fund, Michael Gentile, CFA, and Schroder Investment Management Ltd.
  • Royalty Buyback: Completed the purchase of the Altiplano royalty (NSR) from Exploraciones del Altiplano for $1 million (cash and shares), eliminating the main royalty on the project.
  • Land Consolidation: Acquired 100% interest in seven mineral concessions from Fresnillo, increasing the land position by 85% and expanding the silver-gold trend from 2.5 km to 3.7 km.
  • Resource Update: Increased inferred mineral resources at the Capitan Hill gold deposit by 115% to 525,000 contained gold ounces (pit-constrained).
• 2025 Drilling Highlights (High-Grade Intercepts):
  • Hole 25-ERRC-12: 2,636 g/t Ag over 1.5 m (within 1,400 g/t Ag over 4.6 m; broader zone 370.2 g/t Ag over 19.8 m).
  • Hole 25-ERRC-20: 1,541 g/t AgEq over 1.5 m (within 201.65 g/t AgEq over 18.3 m).
  • Hole 25-ERRC-26:
    • Lower zone: 1,767.4 g/t AgEq over 1.5 m (within 1,222.1 g/t AgEq over 3 m; broader interval 234.2 g/t AgEq over 25.9 m).
    • Upper zone: 612.9 g/t AgEq over 1.5 m (within 155.9 g/t AgEq over 6.1 m).
  • Hole JMRC-33: 803.6 g/t AgEq over 1.5 m (within 129.2 g/t AgEq over 22.9 m).
  • Hole JMRC-26: 502.0 g/t AgEq over 1.5 m and 328.6 g/t AgEq over 1.5 m (within 238.4 g/t AgEq over 10.7 m).
• Market Maker Engagement:
  • Retained Generation IACP Inc. (GIACP) as market maker effective Feb 1, 2026.
  • Fee: $8,500 + taxes per month.
  • Term: Initial 6 months, auto-renewing for 3-month periods. Fee increases 3% annually after the first anniversary.
• Technical Report:
  • Filed NI 43-101 technical report for the Capitan Hill oxide gold deposit on Jan 19, 2026, with an effective date of Oct 14, 2025.
  • Prepared by APEX Geoscience Ltd.

Notable Quotes

• Alberto Orozco, CEO: "Capitan's 2026 drilling campaign represents a significant step forward for the company's exploration at the Cruz de Plata silver-gold project. The 60,000 planned metres for this year's program is expected to more than double the entirety of the drilling completed at the property to date."
• Alberto Orozco, CEO: "We have big aspirations for Capitan Silver. With the combined $29-million in funding we raised in December, 2025, the company has never been in a better position to expand what is already a very compelling, rich silver system."