Peruvian processes 27,994 tonnes at Aguila in 9 months

Executive Summary

• Peruvian Metals reports strong year-to-date production at its 80%-owned Aguila Norte processing plant in Northern Peru, processing 27,994 metric tonnes in the first three quarters of 2025, a 13% increase over the same period in 2024, putting the company on track for a record production year.
• The company provides an update on the amended terms of the sale of the Minas Maria Norte project to Rio Silver Inc., including a revised equity stake of up to 4 million shares (9.9% of issued capital) and retained cash payments, while eliminating prior warrants and royalties.
• CEO Jeffrey Reeder highlights the strategic value of the Rio Silver transaction in enhancing working capital and allowing the company to focus on the Palta Dorada project, while noting the Aguila Norte plant’s environmental permit allows for expansion beyond the current 100-tonne-per-day capacity.

Key Details

• Aguila Norte Plant Production (Q3 2025):
  • Processed 9,494 metric tonnes (mt) during the third quarter.
  • Plant operated at full capacity for the first three quarters of 2025.
• Year-to-Date Production (First Three Quarters 2025):
  • Total processed: 27,994 mt.
  • Comparison to 2024: Exceeded 2024 levels (24,734 mt) by more than 13%.
  • Outlook: Company is on track to achieve a yearly production record for 2025.
• Minas Maria Norte Project Disposition Update (Rio Silver Inc.):
  • Original Deal Reference: Press release dated March 26, 2025.
  • Amended Equity Consideration: Issuance of payment securities equal to 9.9% of Rio Silver’s issued capital shares, capped at a maximum of 4 million shares.
  • Valuation Date: Calculated on the date immediately following the completion and closing of Rio Silver’s financing announced on September 11, 2025.
  • Cash Consideration:
    • Upfront payment: $22,500 (U.S.).
    • Semi-annual option payments: $25,000 (U.S.) per period.
    • Aggregate option payments: $250,000 (U.S.).
  • Removed Terms: All prior warrants and royalties associated with the transaction have been eliminated.
  • Regulatory Status: Subject to applicable regulatory approvals, including the TSX Venture Exchange.
• Strategic Context:
  • Proceeds from the Rio Silver deal are expected to enhance Peruvian Metals' working capital.
  • Transaction allows Peruvian Metals to focus on the Palta Dorada Au-Ag-Cu project in Northern Peru.
  • Aguila Norte plant holds an environmental permit (IGAC) allowing expansion past the current 100-tonne-per-day level.

Notable Quotes

• "We are on track for record production for 2025. Furthermore, we expect to complete the closing of the disposition of a non-core asset to Rio Silver shortly. The deal will enhance the working capital of Peruvian Metals and further shows the ability of the company to acquire prospective mineral properties in Peru at a low cost and add significant value for shareholders. This disposition will also allow Peruvian Metals to focus on its prospective Palta Dorada Au-Ag-Cu project in Northern Peru." — Jeffrey Reeder, Chief Executive Officer