Silver Storm Commences Hot Commissioning of the La Parrilla Sulphide Circuit, Amends the Samsung Prepayment Agreement, and Secures US$5 Million Loan from First Majestic

Silver Storm Mining Ltd. has begun hot commissioning of the La Parrilla sulphide processing circuit, utilizing feed from a high-grade sulphide stockpile. Concurrently, underground development is underway at the Quebradillas and Rosarios operations to supply run-of-mine material.

To support the ramp-up, the company secured a US$5 million non-revolving unsecured term loan from related party First Majestic Silver. The loan carries a 15% interest rate and a three-year maturity, with repayment structured in eight quarterly installments beginning 15 months post-closing.

Additionally, an amendment to the Samsung agreement has extended the grace period for initial principal and arrangement fee payments from May 2026 to September 2026. The supply period has also been lengthened by six months, bringing the total duration to 30 months, a move designed to align cash outflows with the operational ramp-up.

Silver Storm Mining Ltd. (SVRS) has begun the hot commissioning of its sulphide circuit, a milestone that aligns with the timeline set out in its June 11 first-doré release. That announcement had projected the start of sulphide commissioning for June 2026; while the actual start slipped into July, the delay falls within expected project execution parameters.

To support operations, the company secured a US$5 million loan. This financing is non-dilutive but carries a 15% coupon. The addition of cash brings the company’s total liquidity to approximately US$28.6 million as of March 31, 2026. This move provides a conservative buffer for an already well-funded balance sheet rather than signaling financial distress, and it is not considered transformative.

Additionally, an amendment to the Samsung agreement defers payments and extends the supply period by six months. This adjustment does not change the size or terms of the US$7 million offtake facility. Instead, it serves to match cash outflows with revenue generation, offering incremental flexibility.

The company’s operational restart is proceeding broadly on schedule, with the additional liquidity and flexibility representing routine progress for a company in this phase. There is no new unexpected information that significantly alters the investment case, valuation, or risk profile.

Silver Storm Mining Ltd. (SVRS) is focused on restarting the past-producing La Parrilla Silver Mining Complex in Durango, Mexico, which it owns 100%. The company acquired the site in 2023 and is nearing full recommissioning following the rehabilitation of the plant and underground infrastructure. The complex features a 2,000 tpd mill, three underground mines, and a large land package spanning 38,128 ha. Silver Storm also holds the San Diego advanced-stage silver project, which it owns 100% and which contains 55.5 moz Indicated and 155.3 moz Inferred Ag.Eq.