First Andes to acquire Australian exploration assets

Executive Summary

• First Andes Silver Ltd. has entered into an asset purchase agreement to acquire three silver-focused exploration licence applications (Carrington, Stoney Creek, and Dartmoor) in New South Wales, Australia, from South Star Pty. Ltd.
• The acquired portfolio covers approximately 454 square kilometres in the Lachlan orogenic belt and includes historic high-grade silver and gold production, with multiple deposit styles including skarns, epithermal veins, and VHMS mineralization.
• The transaction consideration consists of $15,500 AUD and 1.5 million common shares of First Andes Silver, subject to a four-month resale restriction and TSX Venture Exchange approval.

Key Details

• Assets Acquired: Three exploration licence applications (ELAs) totalling ~454 sq km (45,400 hectares):
  • Carrington Project (ELA 6982): 160 sq km; iron-rich gold-silver-lead-antimony skarn system. Historic rock-chip sampling returned up to 6,037 g/t Ag and 85 g/t Au.
  • Stoney Creek Project (ELA 6983): 247 sq km; orogenic base metal to low-sulphidation epithermal vein systems. Historic sampling returned up to 212 g/t Ag and 18.4 g/t Au; historic drilling reported 5m at 3.0 g/t Au.
  • Dartmoor Project (ELA 6981): 47 sq km; VHMS-style polymetallic mineralization. Historic small-scale production averaged 980 g/t Ag and 12% Cu.
• Transaction Consideration:
  • Cash: $15,500 AUD.
  • Equity: 1.5 million common shares of First Andes Silver Ltd.
  • Restrictions: Shares subject to a four-month resale restriction from the date of issue.
• Strategic Context: The acquisition complements First Andes's flagship Santas Gloria silver project in Peru, providing a cost-effective exploration pipeline in a jurisdiction known for silver-rich deposits.
• Qualified Person: Dr. Christopher Wilson, PhD, FAusIMM (CP), FSEG, FGS, Chief Geologist of First Andes Silver, has reviewed and approved the technical information.

Notable Quotes

• "We are pleased to be acquiring three highly prospective silver exploration licences in New South Wales, a jurisdiction well known for its silver-rich deposits. The combination of high-grade historic silver and gold results, multiple deposit styles and excellent access to infrastructure provides First Andes with a cost-effective, year-round exploration pipeline that complements our flagship Santas Gloria silver project in Peru." — Colin Smith, Chief Executive Officer