Carlton required to upgrade permit application in Peru

Executive Summary

• Carlton Precious Inc. has been notified by the Peruvian Ministry of Mines and Energy (MINEM) that its application for an FTA-level drilling permit at the Esquilache silver project must be upgraded to a standard DIA (Declaration de Impacto Ambiental) permit due to historical mine liabilities and rehabilitation requirements.
• The company expects to submit the DIA application in early 2026, which will delay the commencement of planned drilling operations.
• Upon approval of the DIA, Carlton plans to execute a 5,000-metre core drilling program designed to advance the project toward a reportable mineral resource estimate.

Key Details

• Project Location and Ownership: Esquilache silver project, Puno region, Southern Peru; 1,600 hectares; 100% owned royalty-free by Carlton Precious.
• Historical Context: Formerly developed by Hochschild Mining PLC; historical production (1960s-1970s) exceeded one million tonnes grading 3.4 oz/t Ag, 3.8% Zn, 4.2% Pb, and 0.3 g/t Au.
• Permitting Status: MINEM rejected the initial FTA-level permit application, requiring an upgrade to a DIA permit due to outstanding surface mine liabilities and rehabilitation work committed to by local authorities.
• Timeline: DIA application submission expected in early 2026.
• Future Work Plan: A 5,000-metre core drilling program is planned immediately following DIA approval.
• Strategic Objective: The drilling aims to estimate a reportable mineral resource and potentially trigger engineering programs and feasibility studies, leveraging recent increases in silver prices.
• Technical Review: Content reviewed by Steven L. Park, MSc, CPG, a Qualified Person under National Instrument 43-101.