Latin Metals Provides Update on Partner-Funded Exploration, Cerro Bayo Gold-Silver Project, Argentina

On January 20, 2026, Latin Metals provided an exploration update for its Cerro Bayo Gold-Silver Project in Santa Cruz, Argentina. The work is being funded and conducted by their option partner, Daura Gold Corp. Key developments include: * Completed Work: Daura Gold finished approximately 27 line-kilometers of pole-dipole Induced Polarization (IP) surveying. * Targeting: The survey identified multiple anomalies, refining 15 priority drill target areas. * Upcoming Catalyst: A Phase 1 diamond drilling program consisting of 1,500 meters across 22 holes is scheduled to commence in mid-February 2026. * Regional Work: A regional gradient array IP survey has started in the northern area of the project. * Marketing: The company confirmed attendance at VRIC, CEM, and PDAC conferences in Q1 2026.

This news is Routine - Positive. It confirms that the Prospect Generator (PG) model is functioning as intended for the Cerro Bayo asset. The partner (Daura) is spending the capital to advance the project, shielding Latin Metals shareholders from dilution and financial risk for this specific exploration program.

However, the impact is limited by the scale of the program. A 1,500-meter drill program is a "scout" campaign (averaging ~68m per hole across 22 holes), which is designed to test near-surface concepts rather than define a resource. While positive that work is proceeding, this does not carry the weight of a definition program. This news serves primarily to maintain news flow and confirm that the project has not stalled following the option agreement signed in November 2025.

Latin Metals Inc. operates as a Prospect Generator. They acquire prospective mineral assets, perform low-cost initial work, and then option the projects to partners who fund major drilling in exchange for equity. This minimizes shareholder dilution.

• Flagship 1 (Active Partner): Cerro Bayo (Argentina). Advanced exploration gold-silver project. Currently optioned to Daura Gold, who is funding the upcoming 1,500m drill program.
• Flagship 2 (Orphaned): Organullo (Argentina). A large alteration zone with high-sulphidation gold potential. Previously optioned to AngloGold Ashanti, who terminated the deal in Oct 2025 citing a change in global strategy, despite investing ~$3.3M. This is now 100% LMS owned but lacks a funding partner.
• Spin-Out Assets: Para and Auquis (Peru) are copper projects being spun out into a new entity, Latin Explore Inc., to separate the "self-funded drilling" strategy from the LMS prospect generator model.