Highlander Silver Provides Update; Drilling Commences at Corani Silver Project
Highlander Silver Provides Update; Drilling Commences at Corani Silver Project
Toronto, April 7, 202 6 – Highlander Silver Corp. (TSX, NYSE American: HSLV) (“Highlander
Silver” or the “Company”) is pleased to provide a portfolio update following the successful
completion of its combination with Bear Creek Mining (see press release dated February 26,
2026).
Daniel Earle, President and CEO of Highlander Silver, commented:
“Highlander Silver is well positioned to fast-track project advancement across its portfolio of high-
quality silver assets. This includes a focus on high-impact exploration, project optimization, and
site preparation for development of Corani, the largest fully permitted primary silver project in the
world, as well as permitting at San Luis, one of the highest M&I resource grade projects in both
the gold and silver sectors.
As of March 31, the Company had an unaudited cash balance of approximately US$100 million
and no debt. The Mercedes gold-silver mine also made a positive cash contribution in its first
month of operations following restructuring under our stewardship. We provide a summary of our
baseline plans below and forecast a year-end cash balance of approximately US$60 million. This
reflects a disciplined approach to spending that delivers on our core objectives while preserving
flexibility to scale up our exploration programs later in the year.”
Corani Silver Project – Puno, Peru
Personnel
• Carlos Ojeda appointed Vice President & General Manager — Mr. Ojeda has held
increasingly senior roles leading teams of up to 500 people in engineering, construction,
ramp-up and optimization at Anglo American’s major Quellaveco open pit mine in Peru,
with prior experience at other major open pit mines in the country, including Antamina,
Mina Justa and Constancia
Exploration
The Company will provide a standalone exploration update later this quarter that includes early
results from the exploration programs listed below:
• First-ever airborne magnetic survey totaling 620 line km, covering the majority of the land
package completed
• 54 km of planned 60 km induced polarization survey completed, with program expanded
to 96 km to cover additional potential extensions interpreted from results
• First exploration drilling program in over a decade is now underway with the first of four
planned rigs targeting high-impact exploration, resource growth, infill and oxide drilling, as
well as technical drilling to support optimization studies
Site Preparation and De-risking
• Earthworks for internal roads and platforms commenced
• Camp and facility improvements underway
• Long-lead-time equipment orders will be placed in late Q2/26
• Substation construction underway, with powerline to commence in late Q2/26
• Access road rehabilitation underway, with new road construction to commence in late
Q2/26
Studies, Consultants and Contractors
• Updated Feasibility Study based on staged-development approach completed by the end
of Q3/26 aiming to maximize returns on a per share basis while mitigating capital
expenditure, funding, timeline and execution risks
• Respected international and specialist-Peruvian consultants and contractors appointed for
the majority of the main work packages, with further appointments to follow:
o Resource, reserves and mine planning — MINSYS Mining Systems
o Processing plant and infrastructure — Ausenco Engineering
o Contractors — ApuCorp, Xplomine and CumbrEx
Mercedes Gold-Silver Mine – Sonora, Mexico
Personnel
• Orlando Chumpitaz appointed Vice President & General Manager — Mr. Chumpitaz has
held senior roles with leading companies operating major underground mines globally,
including Senior Mine Manager for Lundin Gold at its 5,000 tpd Fruta del Norte gold mine
in Ecuador, Project Manager for Endeavour Mining at its 6,000 tpd Mana Mine in Burkina
Faso, General Manager for Minera Volcan at its 5,500 tpd Animon mine in Peru, and
Operations Director for Fortuna Mining at its 3,000 tpd San Jose mine in Mexico
Restructuring
• Extinguished excessive gold stream and settled debt such that we expect the Mercedes
mine to generate free cash flow net of the critical investments detailed below
• Restored working capital, settled overdue payables and in the process of settling minor
unpaid taxes and establishing bonding program
• Settled union agreements
Recapitalization
Mercedes produced 30 koz of gold in 2025. Significant improvement across worker safety,
production and operating cost s are expected in the coming years with a rejuvenated workforce
operating under the proven leadership of Mr. Chumpitaz, and the following programs planned:
• Infill and definition drilling to support an improved reserve model
• Accelerated mine development to improve access and enhance operational productivity
• Upgrading critical infrastructure including ventilation, electrical systems, surface water
management and underground pumping capacity
• Geotechnical drilling and implementation of support systems to improve safety and reduce
dilution
• Cost assessment and right-sizing mine contractor deployment to enhance productivity
• Tailings Management Facilities expansion to support mine life extensions
• Resumption of greenfield and brownfield exploration campaigns across extensive land
package in geologically favorable and prospective areas
On behalf of Highlander Silver
“Daniel Earle”
President and CEO
Information contact
Arun Lamba, Vice President Corporate Development
About Highlander Silver
Highlander Silver is a high -quality silver-growth company developing a portfolio of advanced -
stage assets in Peru which includes the Corani silver project , the largest fully -permitted silver
deposit in the world, and the bonanza-grade San Luis gold-silver project, which ranks among the
10 highest-grade projects globally in both gold and silver categories.1 The Company also operates
the Mercedes gold -silver mine in Mexico. Highlander Silver's major shareholders include the
Augusta Group, Lundin family, and Eric Sprott.
Forward-looking statements
Certain information contained in this news release constitutes “forward-looking information” under
Canadian securities legislation. This includes, but is not limited to, forecasting a year -end cash
balance of approximately US$60 million; the Company will provide a standalone exploration
update later this quarter that includes early results from the exploration programs; Long lead time
equipment orders to be placed in late Q2/26; powerline to commence in late Q2/26; new road
construction to commence in late Q2/26; Updated Feasibility Study based on staged-development
approach completed by the end of Q3/26 ; we expect the Mercedes mine to generate free cash
flow net of the critical investments; significant improvement across worker safety, production and
operating costs are expected in the coming years with a rejuvenated workforce operating under
the proven leadership of Mr. Chumpitaz ; and the Mercedes recapitalization program. Such
forward looking information or statements can be identified by the use of words such as “ramp
up”, “attempting”, “intends”, “believes”, “plans”, “suggests”, “targets” or “prospects” or variations
(including negative variations) of such words and phrases, or state that certain actions, events or
results “will” be taken, occur, or be achieved. Forward -looking information involves known and
unknown risks, uncertainties, and other factors which may cause the actual results, performance,
1 S&P Global rankings including the Corani silver project and San Luis gold -silver project.
or achievements of the Company and/or its subsidiaries to be materially different from any future
results, performance, or achievements expressed or implied by the forward -looking information.
Such factors include, among others, general business, economic, competitive, political and social
uncertainties, the actual results of current exploration activities, changes in project parameters as
plans continue to be refined, future prices of precious and base metals, accident, labour disputes
and other risks of t he mining industry, and delays in obtaining governmental or stock exchange
approvals or financing. Although the Company has attempted to identify important factors that
could cause actual actions, events or results to differ materially from those described in forward-
looking information, there may be other factors that could cause actions, events or results to differ
from those anticipated, estimated or intended. Forward-looking information contained herein are
made as of the date of this news release. Ther e can be no assurance that forward -looking
information will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. The Company undertakes no obligation to update
forward-looking information if circumstances or management’s estimates or opinions should
change, except as required by applicable securities laws. Accordingly, the reader is cautioned not
to place undue reliance on forward-looking information.