VIZSLA SILVER PROVIDES UPDATE ON SITUATION IN CONCORDIA

The most recent news (March 5, 2026) confirms a deteriorating humanitarian and security situation at the Panuco project in Concordia, Mexico. Following the January 28, 2026, abduction of 10 colleagues from the project site, the company has confirmed that two additional families have received news of deceased loved ones, while three individuals remain missing. This follows a string of negative updates since late January. Concurrently, Siskinds LLP has launched an investigation into a potential class-action lawsuit (March 3, 2026) following a 15% share price drop. Operations at the site remain suspended, with only remote engineering work continuing.

The impact is Material and Negative. While the company entered 2026 with a massive cash balance (US$450M) and a stellar Feasibility Study (111% IRR), the security crisis creates several non-financial hurdles that could derail the timeline for "First Silver H2 2027": - Operational Halt: Physical site activities are suspended. Every month of delay pushes back the 2027 production target and increases burn rate. - Social License and Labor: The loss of life among the workforce is a catastrophic blow to morale and local community relations. Recruiting and retaining specialized labor in a "high-risk" zone will now carry a significant premium. - Legal/Regulatory Risk: The class-action investigation adds a layer of litigation risk. Furthermore, Mexican authorities may impose stricter (and costlier) security requirements or delay the MIA permit (expected mid-2026) until safety can be guaranteed. - Valuation Discount: Mining in Mexico already carries a jurisdictional discount; a confirmed kidnapping and multi-fatality event will likely lead to a permanent re-rating of the risk premium applied to the Panuco NPV.

Vizsla Silver is developing the 100%-owned Panuco silver-gold project in Sinaloa, Mexico. It is a past-producing district with over 86 km of vein extent. - Flagship: Panuco Project. - Feasibility Study (Nov 2025): After-tax NPV(5%) of US$1.8B, 111% IRR, and a 7-month payback at US$35.50/oz Ag. - Production Profile: 17.4 Moz AgEq annually over a 9.4-year mine life.