Denarius Metals begins work for Aguablanca restart

Mr. Michael Davies reports DENARIUS METALS COMMENCING ACTIVITIES TO RESTART OPERATIONS AT THE AGUABLANCA PROJECT IN SPAIN Denarius Metals Corp. has commenced activities for the restart of operations at the Aguablanca project in Spain. Serafino Iacono, executive chairman of Denarius Metals, commented: "In our capacity as operator, we have initiated activities to restart mining operations at the Aguablanca project, the only nickel mine in Spain that has also been recognized by the EU [European Union] as a strategic project under the Critical Raw Materials Act. We have engaged Metso, a global pioneer in providing sustainable technologies, integrated solutions and services for the quarrying, mineral processing and metal refining industries, to lead the work required to refurbish Aguablanca's 5,000-tonnes-per-day processing plant. METSO will provide financing for the reconditioning services in phase 2 and commissioning in phase 3 of the refurbishment project. We have also completed the design of the dewatering system and have commenced pilot activities as part of the dewatering program that will provide access to the existing underground mine. If the work all goes as currently planned, we expect to have the Aguablanca underground mine back in production by mid-2026, processing material at a rate of over 800,000 tonnes per year and producing an average of approximately 70,000 tonnes per year of nickel-copper concentrates. We are also in the process of designing a brownfield drilling program to commence in 2026 aimed at extending the life of the Aguablanca mine, focusing on expanding reserves in the known main orebodies, as well as expanding the resource footprint of the satellite mineralization of the deposit." The Aguablanca project is 100 per cent owned by Rio Narcea Recursos SA (RNR). Denarius Metals, through its wholly owned subsidiary, Alto Minerals SLU, owns 21 per cent of RNR and is the operator of the Aguablanca project. RNR recently signed an agreement with Metso Spain SA to carry out a phase 1 detailed assessment, commencing in September, of the condition of the existing processing facility to determine the extent of the required expenditures in phase 2 and phase 3 of the refurbishment program that will be financed by Metso. The reconditioning services in phase 2 and subsequent commissioning of the plant in phase 3 will then be carried out by a Portuguese company with extensive experience in industrial maintenance under the supervision of Metso Spain. As the processing facility has been maintained in good condition, maintenance and commissioning activities to resume operation of the plant are expected to last no longer than eight months. Refurbishment work on all plant services will run in parallel with the dewatering activities. Pilot dewatering activities commenced in July with the installation of a 10-nozzle forced evaporation system to accelerate the evaporation of water from the tailings dam during the hot summer months in Spain. Two more evaporators with much higher evaporation capacity will be installed in August to test their efficiency. In October, the company expects to commence the dewatering of the existing open pit to gain access to the underground mine workings. The design and engineering of the dewatering system have been completed and will be carried out by a renowned Andalusian company specializing in providing dewatering solutions for the mining sector. The installation of the dewatering system will take place during the month of September. Dewatering activities to resume operation of the underground mine are expected to last no longer than six months. Negotiations are under way with Endesa, one of the three largest electricity companies in Spain, for the installation and maintenance of underground electrical connections. Once dewatering is completed, the underground assessment of ventilation, ramp access and power in the mine will commence. Construction of a new escapeway system in the underground mine will commence after dewatering of the main ramp is completed. In addition to the financing being provided by Metso, Denarius Metals is continuing its efforts to secure additional project financing directly through RNR to finance the capital expenditures associated with start-up activities at the Aguablanca project. About Denarius Metals Corp. Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of precious metals and polymetallic mining projects in high-grade districts in Colombia and Spain. Denarius Metals is listed on Cboe Canada, where it trades under the symbol DMET. The company also trades on the OTCQX market in the United States under the symbol DNRSF. In Colombia, Denarius Metals commenced mining operations in the second quarter of 2025 at its 100-per-cent-owned Zancudo project, a high-grade gold-silver deposit, which includes the historic producing Independencia mine, located in the Cauca belt, about 30 kilometres southwest of Medellin. In Spain, Denarius Metals has interests in three projects focused on in-demand critical minerals. The company owns a 21-per-cent interest in Rio Narcea Recursos SL and is the operator of its Aguablanca project, which has been recognized by the EU as a strategic project. The Aguablanca project comprises a turnkey 5,000-tonne-per-day processing plant and the rights to exploit the historic producing Aguablanca nickel-copper mine, located in Monesterio, Extremadura. Denarius Metals also owns a 100-per-cent interest in the Lomero project, a polymetallic deposit located on the Spanish side of the prolific copper-rich Iberian pyrite belt, approximately 88 kilometres southwest of the Aguablanca project, and a 100-per-cent interest in the Toral project, a high-grade zinc-lead-silver deposit located in the Leon province, northern Spain. We seek Safe Harbor.