Peruvian Metals Corp. Closes Sale of the Maria Norte Ag-Au-Pb-Zn to Rio Silver Inc.

The most recent news, dated December 15, 2025, announces that Peruvian Metals Corp. (PER) has closed the sale of its wholly-owned subsidiary, Mamaniña Exploraciones S.A.C., which holds the mining rights to the Maria Norte Ag-Au-Pb-Zn project, to Rio Silver Inc.

The consideration for the sale consists of: - 3,999,999 common shares of Rio Silver Inc. (TSXV: RYO), which represents approximately 9.27% of Rio Silver's issued and outstanding share capital. - US$250,000 in aggregate cash payments over five years, to be paid in semi-annual installments.

Jeffrey Reeder, CEO and Chairman, expressed satisfaction with the transaction, highlighting that Peruvian Metals now holds a significant interest in Rio Silver, allowing it to indirectly benefit from any exploration or development success at Maria Norte. He reiterated the company's focus on its Peruvian gold and silver projects in Northern Peru, specifically Palta Dorada, Yanayco, and Minas Vizca, while continuing to generate positive cash flow from the Aguila Norte Processing Plant.

This news confirms the completion of a strategic asset disposition that Peruvian Metals had previously announced (March 26, 2025) and provided an update on (October 28, 2025).

The material impact is multi-faceted:

• Strategic Alignment: The sale of Maria Norte, a non-core asset, aligns directly with the company's stated strategy to focus on the Peruvian gold and silver space in Northern Peru, particularly the Palta Dorada project. This streamlines the company's portfolio and allows for concentrated efforts and capital allocation.
• Asset Diversification & Liquidity: Peruvian Metals gains a tangible equity stake (9.27%) in another publicly traded company, Rio Silver Inc., which provides exposure to a different asset base and potential appreciation, while maintaining some indirect upside from Maria Norte. The US$250,000 cash consideration, spread over five years, provides a modest, recurring cash flow stream, contributing to working capital over the medium term.
• Balance Sheet Enhancement: The transaction strengthens the company's asset base with a new equity investment and a predictable, albeit small, cash flow. This is particularly relevant given Peruvian Metals' historically tight cash position and negative working capital.
• Confirmation of Execution: The successful closing of the transaction demonstrates management's ability to execute on its strategic initiatives, which can bolster investor confidence.

Compared to previous news: * The initial announcement on March 26, 2025, indicated consideration of 15,000,000 Rio Silver shares and 5,000,000 warrants, along with US$15,000 down payment and US$250,000 over 5 years. * The update on October 28, 2025, amended the share consideration to "9.9% of issued capital shares up to 4 million shares" and confirmed the US$250,000 in semi-annual option payments (implied cash). * The final closed deal specifies 3,999,999 shares (9.27%) and the US$250,000 aggregate cash payment. This means the share component was significantly reduced from the initial proposal but is consistent with the amended terms announced in October. The warrants component of the original deal was removed in the final terms, which is a missed upside opportunity, but the 9.27% equity stake is still a solid asset.

Overall, while the core transaction was anticipated, the definitive closing and the specific terms (especially the equity stake in Rio Silver and the fixed cash payments) are a positive development, further clarifying the company's financial and strategic position. The impact is routine in the sense that it was expected, but positive for the company's focus and financial structure.

Peruvian Metals Corp. (TSXV: PER) is a Canadian-based mineral processing and exploration company with operations primarily in Peru. The company is actively involved in operating a mineral processing plant and advancing exploration projects for gold, silver, and base metals.

Flagship Project: The company's primary revenue-generating asset is the Aguila Norte Processing Plant, an 80%-owned facility located in Northern Peru. This plant has a permitted capacity of 100 tonnes per day (tpd) and operates on a toll-milling basis, processing mineral from various local mining operations. It consistently reports strong production figures and is a source of positive operating cash flow for the company. The plant has an environmental permit (IGAC) allowing for potential expansion beyond its current capacity.

Other Key Projects and Initiatives: * Palta Dorada Project (100% owned): An Au-Ag-Cu project located in Northern Peru, identified as a key focus area for the company's strategic shift into the Peruvian gold space. It hosts high-grade gold in oxide and sulphide material, with access roads to underground workings re-established in late 2024 and early 2025. The company is exploring other gold opportunities in the area and contemplating a Carbon-in-Pulp (CIP) plant. * Mercedes Property: A gold-silver-lead-zinc-copper property in central Peru, in which Peruvian Metals holds a 50% interest through its investment in San Maurizo Mines Inc. This property has extensive underground workings and is slated for bulk sampling in early 2025. * Maria Norte Project: (Previously Ag-Au-Pb-Zn project in south-central Peru). This project has now been divested to Rio Silver Inc., indicating a strategic streamlining of assets. * Yanayco and Minas Vizca projects: Gold-silver exploration projects in Peru, mentioned as part of the company's ongoing focus.