Sierra Madre Fully Repays First Majestic Loan

Sierra Madre Gold and Silver Ltd. has fully repaid its US$5 million non-revolving, secured term loan with First Majestic Silver Corp., bringing the company to a debt-free status. The repayment reflects strong cash generation from the La Guitarra operation, which restarted commercial production in January 2025.

The loan was originally announced on May 8, 2024, and was previously extended via a term extension announced on June 5, 2025, setting a maturity date of May 8, 2027. A partial prepayment was announced on March 24, 2026. With this final repayment, the Company is now debt-free and producing positive operating cash flows. Management intends to use the reduced financial obligations to advance exploration and development activities at both the La Guitarra and Del Toro assets. Sierra Madre also closed the acquisition of the Del Toro silver mine in June 2026.

Concurrently, the company granted 8,800,000 stock options to employees, directors, management, and consultants at $1.38 per share, subject to TSX Venture Exchange approval. The options are exercisable for five years from the grant date.

The recipients include employees of La Guitarra Compania Minera, S.A. de C.V., certain directors, members of management, and consultants. The general vesting schedule dictates that one-third vests immediately upon grant, one-third vests six months after grant, and one-third vests twelve months after grant. For Adelaide Capital Markets Inc., 150,000 options were granted to an investor relations consultant, with a vesting schedule of one-quarter at three months, one-quarter at six months, one-quarter at nine months, and one-quarter at twelve months.

Alexander Langer, President, Chief Executive Officer and Director, stated: "We are happy to announce the full repayment of our loan facility with First Majestic, which reflects the strong cash generation from our La Guitarra operation. The Company is currently debt free and producing positive operating cash flows. By reducing our financial obligations, we are on a strong path to advance exploration and development activities at both La Guitarra and Del Toro."