Kuya mines 1,999 mt of material at Bethania in Q4

Executive Summary

• Kuya Silver Corp. reported record Q4 and full-year production at its Bethania silver project, driven by accelerated underground development and ramp-up activities.
• The company secured a CAD$25.5 million private placement financing to vertically integrate processing capacity, targeting the acquisition or construction of a dedicated flotation plant to improve recoveries and margins.
• Operational highlights include record mining of 1,999 metric tonnes of mineralized material and significant underground development advances, while the company strategically deferred fresh ore processing to January 2026 to capitalize on higher silver prices.

Key Details

• Q4 Production Metrics:
  • Record 1,999 metric tonnes of mineralized material mined.
  • 172 metres of underground development advanced.
  • 2,318 metric tonnes of development material moved (54% of total material extracted).
  • 88% of Q4 revenue derived from silver in concentrate; 92% for the full year.
• Financing Details:
  • Closed a brokered private placement for gross proceeds of CAD$25.5 million.
  • Use of proceeds: Acquire or construct a dedicated flotation plant to vertically integrate production, improve silver recoveries, and capture minor gold/copper currently lost in toll-milling.
  • Strategic goal: Support ramp-up to phase one target of 350 tonnes per day.
• Operational Strategy & Stockpiles:
  • Deferred majority of fresh mineralized material processing to January 2026 to benefit from higher silver prices.
  • Q4 processed historic low-grade stockpile material (4.1 oz/t Ag) blended with fresh ore (9.2 oz/t Ag), resulting in temporarily lower grades and metallurgical recoveries due to oxidation.
  • Stockpile inventory at quarter-end: ~1,254 metric tonnes of fresh mineralized material (estimated grade 8.15 oz/t Ag), currently being processed in January.
  • Prepared 5,095 metric tonnes of additional low-grade stockpiled material (estimated 3.07 oz/t Ag) for future shipment/processing when mill capacity allows.
• Technical & QA/QC:
  • Underground vein sampling conducted every four meters via channel sampling.
  • Stockpile sampling via trenching at regular intervals.
  • Assays performed via fire assay and atomic absorption spectroscopy at Dmtri I. Mendelejeff laboratory in Huancayo.
  • Results cross-checked against independent buyer analyses; strict custody chain protocols in place.
• Management Commentary:
  • CEO David Stein noted Q4 was the first time since startup the company had excess working capital, allowing focus on growth, development, hiring, and 2026 capital projects (drill program and ramp project).

Notable Quotes

• "The fourth quarter was the first time since starting up the Bethania mine that the company enjoyed an excess in working capital, which allowed the mine to focus on fundamental growth, development, hiring employees and preparations for valued-added capital projects throughout 2026 such as the drill program and ramp project." — David Stein, President and CEO