Silver Storm begins rehabilitation work at La Parrilla

Executive Summary

• Silver Storm Mining Ltd. has commenced rehabilitation activities at its 100%-owned La Parrilla silver mine complex in Durango, Mexico, marking a significant step toward restarting operations.
• Engineering contractor Dynamic Engineering Services Ltd. has been engaged to rehabilitate the processing plant, with an estimated completion time of seven to nine months.
• The company is expanding the sulphide circuit capacity to 1,250 tonnes per day (a 25% increase) and has ordered long-lead items, including flotation cells and a new cyclone, with delivery expected by December 2025.
• SRK Consulting (Canada) Inc. has been engaged to independently review the company's restart plan, covering geomechanical, ventilation, and processing considerations.
• Management targets a potential restart of operations as early as the second quarter of 2026, subject to further technical evaluations.

Key Details

• Contractor Engagement: Dynamic Engineering Services Ltd. awarded the contract for rehabilitation of the La Parrilla processing plant; team mobilized to site on Sept. 3, 2025.
• Timeline: Rehabilitation and preparation activities estimated to take seven to nine months; potential restart targeted for Q2 2026.
• Processing Plant Expansion:
  • Sulphide circuit nameplate capacity expanding to 1,250 tonnes per day (25% increase).
  • Expansion aligns with mineralization profile showing large growth in sulphide material (per March 2025 technical report).
• Equipment Orders & Delivery:
  • July 2025: Ordered eight new 1,000-cubic-foot rougher and scavenger cells for the flotation circuit.
  • New cyclone ordered to increase grinding circuit capacity.
  • Manufacturing underway; delivery of flotation cells and cyclone expected by December 2025.
• Specific Rehabilitation Activities:
  • Infrastructure: Rehabilitating kitchen/mess hall, living quarters, and office areas; replacing roofs on several buildings.
  • Crushing/Milling: Primary jaw crusher to be replaced; ball mills to be relined; motor systems serviced; feed lines, conveyors, screens, and cyclones serviced/repairs; secondary crushing system building reinforced.
  • Circuit Redirection: One of three ball mills redirected from oxide circuit to process feed exclusively to the sulphide circuit.
  • Oxide/Tailings: Five leach tanks repaired; all pumps, valves, and mechanical parts serviced/cleaned/reinstalled; tailings systems inspected, cleaned, and serviced.
  • Commissioning: Dynamic Engineering to lead/manage/supervise all commissioning activities through wet commissioning.
• Underground Works: Initial activities include drift cleaning, scaling, ventilation upgrades, and recommissioning of underground services.
• Independent Review: SRK Consulting (Canada) Inc. engaged to review restart plan components: geomechanical, ventilation, water management, underground mine design, development schedules, and mineral processing.
• Risk Disclosure: No preliminary economic assessment, prefeasibility study, or feasibility study currently exists for the project, resulting in increased uncertainty and higher risks of economic/technical failure.
• Qualified Person: Shane Ghouralal, PEng, reviewed and approved scientific and technical information per National Instrument 43-101.

Notable Quotes

• "The commencement of rehabilitation activities and the ordering of long-lead items at La Parrilla marks an important milestone for Silver Storm. With the existing infrastructure in place and recent financings completed, we are taking decisive steps in respect of the company's objective of bringing the historic La Parrilla silver mine complex back into production and creating value for our shareholders and the communities of Durango. Rehabilitation and preparation activities will take seven to nine months, and, subject to further technical evaluations, we could target the potential restart of operations as early as the second quarter of 2026." — Greg McKenzie, President and CEO