Safi Silver Announces Proposed Extension of Warrants

Safi Silver Corp. has applied to the TSX Venture Exchange to extend the expiry date of 2,500,000 common share purchase warrants from July 12, 2026, to December 31, 2026. The Company also announced an application to reduce the exercise price of these warrants from $1.50 to $0.50, subject to the inclusion of an acceleration clause and holder approval. Both the Warrant Extension and Warrant Repricing are subject to TSXV approval and are not contingent on each other.

The warrants in question were issued pursuant to a private placement of units that closed on July 12, 2023. The current quantity of 2,500,000 warrants reflects a 5-for-1 share consolidation completed on June 4, 2024. The original expiry date for these instruments was July 12, 2026.

Regarding the repricing application, dated January 22, 2026, the exercise price would be reduced from $1.50 to $0.50 per share. This adjustment includes an acceleration clause: if the closing price of Safi common shares is at or above $0.63 per share for ten consecutive trading days, the exercise period of the amended warrants will be reduced to 30 days. The reduced 30-day period begins no more than seven calendar days after the tenth premium trading day.

Approval of the Warrant Acceleration is required from holders of the Warrants pursuant to the warrant indenture dated July 12, 2023. The Company is working to obtain this requisite approval.