Guanajuato Silver talks Bolanitos plans

Executive Summary

• Guanajuato Silver is executing an operational optimization program ahead of the expected January 2026 closing of its acquisition of Bolanitos S.A. de C.V. from Endeavour Silver Corp.
• The company is temporarily closing the Cata processing plant and rerouting mineralized material from the Valenciana mines complex to the El Cubo mill to maximize utilization of the Bolanitos and Cubo mills while reducing standby costs.
• In a separate legal matter, a Mexico City court ruled that the company's subsidiary is liable to pay NucTech Mexico $6.96 million in damages and $3.34 million in costs; the company intends to appeal, which will stay payment pending resolution.

Key Details

• Bolanitos Acquisition:
  • Definitive agreement signed on Nov. 24, 2025, to acquire the Bolanitos gold-silver mine from Endeavour Silver Corp.
  • Closing is subject to customary conditions, including TSX Venture Exchange approval, and is expected in January 2026.
• Operational Optimization & Plant Rerouting:
  • Cata Plant: Temporarily closed (care and maintenance) to stop receiving material from San Ignacio; expected to take ~15 days to complete. Future of the facility is under evaluation.
  • Valenciana Mines Complex (VMC): Mineralized material will now be sent to the El Cubo mill (approx. 10 km away).
  • Utilization Metrics (2024): Bolanitos plant utilization averaged 73%; Cata was 60%; Cubo was 66%. The rerouting aims to maximize Bolanitos and Cubo utilization.
  • Future Synergies: Company is studying potential synergies, including reactivating Cebada, a past-producing mine contiguous and north of VMC.
• Legal Update (NucTech Mexico S.A. de C.V. vs. Minera Mexicana Rosario S.A. de C.V.):
  • Allegation: NucTech claims MMR failed to compensate for installation/use of mineral sorting equipment at San Ignacio mine and seeks compensation for future rentals over 10 years.
  • Court Ruling: Mexico City court ruled MMR liable to pay $6.96 million (U.S.) in damages and reimburse ~$3.34 million (U.S.) in costs (Mexican peso equivalent).
  • Company Response: Guanajuato Silver intends to file a direct appeal (Amparo Directo) citing procedural issues and incomplete expert evidence regarding equipment failures.
  • Impact: The appeal will stay payment of damages/costs until resolved. Average resolution time for such appeals is ~8 months.

Notable Quotes

• "As we continue moving towards closing of the recently announced Bolanitos acquisition, management has started executing an optimization program to ensure maximum performance of our Guanajuato district assets. With the addition of a third processing plant within a 20 km radius, we are realigning our mineral transport routes within our hub-and-spoke processing model." — James Anderson, Chairman and CEO