First Andes Silver to Acquire Silver Focused Properties in New South Wales, Australia

On December 9, 2025, First Andes Silver announced it has entered into an agreement to acquire three silver-focused exploration licence applications in New South Wales (NSW), Australia. The properties, named Carrington, Stoney Creek, and Dartmoor, are being acquired from South Star Pty Ltd. for a total consideration of AUD $15,500 in cash and 1,500,000 common shares of First Andes. The shares are subject to a four-month resale restriction.

CEO Colin Smith stated that while the company's flagship Santas Gloria Silver Project in Peru remains the primary focus, the Australian projects provide a "cost-effective, year-round exploration pipeline" in a well-known silver jurisdiction that complements their main asset.

The acquisition of Australian exploration properties is a strategic diversification, but it is not a material event for the company's near-term valuation. The primary value driver for First Andes remains exploration success at its Santas Gloria project in Peru.

• Progression of Projections: The company has followed through on its stated plans for Santas Gloria in 2025. After a management shake-up and recapitalization in early 2025, the new team announced and executed a 2,000-metre drill program. Visual results announced in July 2025 created significant positive momentum, driving the stock to a high of $0.17. However, the subsequent assay results in August and September, while showing decent silver grades (e.g., 6.2m of 190.5 g/t AgEq), did not meet the market's heightened expectations, leading to a sharp pullback in the share price. Since then, management has prudently outlined a more systematic, data-driven exploration program for Santas Gloria (Nov 19) and has been executing it (Dec 8 update).

• Context of Current News: This acquisition is the first strategic move outside of Peru. It is a low-cost entry into a Tier-1 mining jurisdiction, which is a positive from a risk-management perspective. The cash outlay is negligible, though the 1.5 million shares represent ~2.2% dilution. The CEO's comments appropriately frame this as a complementary, secondary focus. However, for a junior explorer with limited capital and management bandwidth, any diversification can be a distraction from the primary asset. This could be interpreted as a hedge against the risk that Santas Gloria does not develop into a standalone project, or simply a prudent long-term move to build a project pipeline.

• Overall Impact: The impact is Routine - Positive. The diversification is a sound strategic decision that reduces long-term geopolitical risk and adds to the project portfolio at a low cost. It does not, however, add immediate, tangible value in the way a significant drill discovery would. The investment thesis remains unchanged: it is a high-risk bet on exploration success at Santas Gloria.

First Andes Silver Ltd. is a junior mineral exploration company focused on silver. Its flagship asset is the 100%-owned Santas Gloria Silver Project, located 55 km east of Lima, Peru. The project is an intermediate-sulphidation epithermal system with over 12 km of mapped veins that saw historical mining but was never subjected to modern, systematic exploration until the company's maiden drill program in 2024. The company has recently expanded its portfolio by acquiring three early-stage silver exploration projects in New South Wales, Australia.