Magma Silver CEO Letter to Shareholders
MAGMA SILVER CEO LETTER TO SHAREHOLDERS
Vancouver, British Columbia – January 13, 2026
Dear Shareholders,
Welcome to 2026. MagmaSilver started 2025 without a project and in January acquired 100%
control of Niñobamba, a primary silver asset in the mining-friendly country of Peru. This places
Magma in a highly leveraged position relative to silver prices. By the end of 2025, we ha d a
silver-gold asset that is drill -ready and permitted in a market that is significantly revaluing
both precious metals. 2026 will be a year of confirming existing resources and meaningful
expansion through an effective and intelligent utilization of a ful ly funded exploration
program.
In 2025, Magma completed the acquisition of the controlling interest in Niñobamba on
favorable business terms, established operations in Peru, and retained consultants to maintain
a sound relationship with the affected communities. Our technical team, with a combined 60
years of experience in the Peruvian mining sector, reviewed vast amounts of historical data
and conducted two field programs to verify the accuracy of known geological data and to
collect additional samples to expand our knowledge base as aprecursor to the upcoming 2026
drill program.
Magma had meaningful advancements on the corporate side during the year. We completed
financings totaling $6.5M to fully fund our programs through 2026. Through these financings
and warrant exercises, we ended the year with over $5M in the treasury. The oversubscribed
$5M financing, which closed in October, was led by Research Capital and attracted a more
mature investor audience, including Eric Sprott, who now holds a 13.4% fully diluted interest,
marking an important shift toward a long -term shareholder b ase. Magma’s share price
increased by 209% during 2025.
2026 will be an expansion and new discovery year for Magma. Niñobamba has been quietly
waiting to show its potential. Drills will turn in Q1 on one segment of the project for the first
time since 2010, and drilling and assay results are expected to continue throughout the year.
Concurrently with drilling, our team will cond uct surface sampling, trenching, and geological
mapping on the balance of the project, in preparation for an expanded drill program on high-
potential but not drill-tested silver and gold targets. Niñobamba is a shallow-to-near-surface
project, so assayed s amples from surface work will provide a meaningful indication of
mineralization lying slightly deeper. We will begin adding compliant ounces to further support
the project’s potential.
We will continue our efforts commenced in late 2025 to bring the Niñobamba project to the
attention of the strategic long -term investment community through conferences, direct
contact, and other media. We will maintain our relationship-building process with the affected
local communities, as that is paramount to a successful long-term operation and of the utmost
importance within our corporate philosophy.
Historical work by Newmont, AngloGold, Bear Creek, and Rio Silver indicated Niñobamba
would be a viable mining operation at lower silver and gold prices. The two field programs
conducted by Magma in August and September of 2025 confirmed and, in certain cases,
exceeded the historical results. Highlights from the Joramina and Randypata programs
included (news release dated October 30, 2025):
Grab sampling on the Joramina zone returned 17g/mt to 300 g/mt silver and 0.50 g/mt to
14.56 g/mt gold, averaging 136 g/mt silver and 5.32 g/mt gold.
Drift sampling on the Joramina zone returned a 5-metre composite returning 115.09 g/mt
silver and 10m of 2.32 g/mt gold.
Sampling close to the drift returned 0.70m of 395.19g/mt silver and 17.41 g/mt of gold.
A random composite grab sample returned 242 g/mt silver and 0.20 g/mt gold from the
undrilled Randypata zone 2 km silver anomaly.
Silver prices rose by approximately 173% in 2025, and many forecast the trend to continue.
Based on internal studies, including metallurgical testing and internal economic studies
completed by Newmont, Niñobamba is anticipated to be a shallow, low -cost open -pit
operation with projected low extraction and processing costs. Increases in silver price should
go directly to the bottom line of any future mining operation.
2025 was an organizational year, and 2026 will be a year to start delivering on the promise
of this project. We are taking the correct steps to position our company and shareholders to
realize the potential of Niñobamba. Our efforts are designed to expand on historical results
and create long -term incremental value for all stakeholders. We appreciate your continued
support.
Sincerely,
Stephen Barley, Chairman & CEO
www.magmasilver.com
Jeffrey Reeder, P.Geo, a Qualified Person as defined in National Instrument 43 -101 and a Senior
Technical Advisor of the Company, has prepared, or supervised the preparation of the assays and
approved the scientific and technical disclosure contained in this communication.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of theTSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This communication contains forward-looking statements and information under applicable Canadian
securities laws. These statements relate to future events or future performance and include, but are not
limited to, statements regarding the Company's exploration plans for 2026 at the Niñobamba project,
the timing and success of drilling programs, the potential for resource expansion and new discoveries,
the project's anticipated economics, future silver prices, and the Company's community and investor
relations initiatives. Such statements reflect management's current beliefs and are base d on
assumptions made by and information currently available to the Company. Forward-looking statements
are subject to known and unknown risks, uncertainties, and other factors that may cause actual results
to differ materially from those expressed or implied by the forward -looking statements. These risks
include risks inherent in mineral exploration, the interpretation of drill results, the volatility of commodity
prices, operational risks in Peru, the ability to secure necessary permits and financing, and reliance on
historical data. T he Company assumes no obligation to update or revise th ese forward -looking
statements, whether as a result of new information, future events or otherwise , except as required by
law. Readers are cautioned not to place undue reliance on forward-looking statements.