CAPITAN SILVER ANNOUNCES $20 MILLION BOUGHT DEAL FINANCING

On December 8, 2025, Capitan Silver announced it has entered into an agreement with Stifel Canada for a "bought deal" private placement financing. The company will issue 9,855,000 common shares at a price of C$2.03 per share for gross proceeds of approximately C$20 million. The offering includes no warrants. The proceeds will be used to fund exploration activities at the company's Cruz de Plata gold-silver project, as well as for working capital and general corporate purposes. The offering is expected to close on or about December 29, 2025, subject to TSX Venture Exchange acceptance.

This financing is a strategically sound and material positive development for Capitan Silver, coming just three days after a significant resource update. To understand its impact, we must review the company's execution over the past year.

• Q1 2025: The company began the year with a weak balance sheet but quickly secured a C$5.3 million financing at C$0.40/unit (share + warrant) in February, led by strategic investor Jupiter Gold & Silver Fund. This provided the capital to launch a 10,000-metre drill program in March.

• Q2 & Q3 2025: Capitan focused on consolidating its flagship Cruz de Plata project. In June, it announced an LOI to acquire a strategic, royalty-free land package from Minera Fresnillo for US$4 million, effectively consolidating the district. It also moved to eliminate all royalties on the project. The positive news flow and rising share price allowed the company to accelerate the expiry of all 13.25 million warrants from the February financing, bringing in an additional C$6.6 million in cash in July. The Fresnillo land acquisition was finalized in August.

• Q3 & Q4 2025: A steady stream of exceptional drill results began in September, including high-grade intercepts like 2,636 g/t silver over 1.5 metres. The company strengthened its management team and expanded the drill program to 15,000 metres. This exploration success culminated in the December 5th updated Mineral Resource Estimate (MRE) for the Capitan Hill Oxide Gold Deposit, which showed a 115% increase in contained gold to 525,000 ounces in the inferred category. This MRE significantly de-risked the project by adding a substantial, tangible gold component to the company's silver-focused narrative.

The C$20 million financing is the logical capstone to this successful year. The company is capitalizing on its C$2.61 all-time high share price to fully fund its expanded exploration plans.

• Positive Aspects: The deal is a "bought deal," signifying underwriter confidence. At C$20 million, it is substantial and removes any financing overhang for the foreseeable future. Critically, there are no warrants attached, which minimizes future dilution and indicates strong institutional demand.
• Negative Aspects: The issue price of C$2.03 represents a 14.7% discount to the prior day's close of C$2.38, which is typical but still dilutive. The financing adds approximately 9.86 million shares, resulting in ~8% dilution on a pro-forma basis.

Conclusion: This is a classic case of an exploration company "filling the treasury" from a position of strength. The dilution is a small price to pay for securing the capital required to aggressively explore a recently de-risked and expanded project. This move eliminates short-term financial risk and allows management to focus entirely on creating value through the drill bit. The market should view this as a prudent and positive step.

Capitan Silver Corp. is a Canadian silver exploration company focused on its 100%-owned Cruz de Plata Project in Durango, Mexico. The project is an advanced-stage exploration asset characterized as an intermediate sulphidation epithermal system. The company has successfully consolidated the land package and is systematically buying out all royalties to make the project royalty-free. The flagship project contains multiple targets, including the high-grade Jesus Maria silver trend and the recently updated Capitan Hill oxide gold deposit, which hosts an inferred resource of 525,000 ounces of gold and 4.2 million ounces of silver.