SICO.V · 2026-04-13 12:00:00

Silverco Mining Releases Robust PEA for the Cusi Mine Highlighting High-Margin, Low Capital Restart

Economic Studies

Silverco Mining Releases Robust PEA for the

Cusi Mine Highlighting High-Margin, Low

Capital Restart

Vancouver, British Columbia--(Newsfile Corp. - April 13, 2026) - Silverco Mining Ltd. (TSXV: SICO)

(OTCQB: SICOF) (the

"Company"

) is pleased to announce the results of an independent Preliminary

Economic Assessment ("PEA") for the restart of its 100%-owned Cusi Mine located in Chihuahua,

Mexico.

Key Highlights:

After-tax NPV (5%) of US$104.1 million ("M"), IRR of 94.8% and a payback period of 0.9-years at

base case average silver price of US$44.58/ounce ("oz").

After-tax NPV (5%) of US$312.2 M, IRR of 186.9% and a payback period of 0.5-years at the

upside case of US$75.00/oz.

Average annual production of ~2.5 Moz silver equivalent (“AgEq”)

(2028-2033) with ~90%

revenue from silver.

Life-of-mine AISC of US$26.75 per payable oz AgEq.

Initial capital of only US$19.2 M, delivering 5.4x after-tax NPV/to initial capital at base case metal

prices.

Restart of processing targeted for late 2026 with full ramp-up by mid-2027

30,000 metre surface and underground drill program underway targeting infill, resource growth and

mine life extension.

Early restart work is underway at the mine and mill and discussions are underway to select an

underground contractor.

Mark Ayranto, President and CEO, commented:

"We believe the PEA confirms Cusi as one of the most compelling primary silver restart opportunities

globally. With low upfront capital, rapid payback, and strong leverage to rising silver prices, Cusi is

positioned to deliver near-term production and cash flow. Importantly, ongoing drilling and restart work

provide clear upside to both scale and mine life.

We have sufficient funds currently on hand to finance the restart and continue our previously

announced 30,000 m drill program that is testing for on strike and downthrown extensions, in addition

to infill drilling. Work is also well underway at the mine and mill to support the restart, including

dewatering and mine rehabilitation, hiring of key discipline managers, and commencement of the bid

process for an underground mine contractor. With concentrate production scheduled to begin in late

2026 and full ramp-up by mid-2027, we are looking at a very rapid timeline to meaningful production

and cash flow."

The results of the PEA are preliminary in nature and include Inferred Mineral Resources that are

considered too speculative geologically to have economic considerations applied to them that would

enable them to be categorized as Mineral Reserves.

A report supporting this news release will be available on SEDAR+ (

www.sedarplus.ca

) and on the

Company's website (

www.silvercomining.com

) within the next 45 days. All dollar amounts referenced in

this news release are in United States dollars (USD or US$) unless otherwise noted.

PEA Overview

The PEA was prepared by JDS Energy & Mining Inc. ("JDS"), Forte Dynamics ("Forte"), and SGS

Geological Services ("SGS").

The PEA outlines a low-capital restart of an existing underground mine with an initial approximately nine-

year mine life and steady-state throughput of 1,200 tonnes per day (“tpd”). Production is scheduled to

begin in late 2026, with full ramp-up by mid-2027, and average annual output of 2.47 million oz AgEq

produced from 2028-2033.

Table 1: PEA Summary Table

Units

Mill Feed

Mine Life

years

8.3

Mine Throughput

Mt/annum

4.4

Milling Throughput

t/d

1,200

Silver Recovery

84.0%

Lead Recovery

91.5

Zinc Recovery

73.0

Gold Recovery

79.0

Average AgEq Produced

(1)

M AgEqoz/year

2.1 (peak 2.8)

Average AgEq Payable

(1)

M AgEqoz/year

1.7 (peak 2.4)

Financial Analysis - Base Case (Average Ag - $44.58/oz)

(2)

Pre-Tax NPV5%

188.2

Pre-Tax IRR

155.7

Pre-Tax Payback

years

0.6

After-Tax NPV(5%)

104.1

After-Tax IRR

94.8%

After-Tax Payback

years

0.9

Financial Analysis - Upside Case (Fixed Ag - $75/oz)

(2)

After-Tax NPV(5%)

312.2

After-Tax IRR

186.9

After-Tax Payback

years

0.5

Capital Costs

Initial

(3)

19.2

Sustaining, including closure

140.6

Operating Costs

Mining

$/t

40.27

Processing

$/t

23.23

G&A

$/t

9.03

Contingency

$/t

3.63

Cash Operating Costs

$/AgEqoz

17.24

Site AISC

$/AgEqoz

26.75

Notes:

Average Produced and Payable excludes values from 2026

Metal prices for Lead, Zinc, and Gold for both Base and Upside cases are $0.91/lb, $1.21/lb, and $3,000/oz respectively.

Initial capital is inclusive of all capital spend and owners costs to end of Q1 2027 and includes revenue generation during commissioning

period from Q4 2026 to Q1 2027

Silver Revenue

The Cusi Project's economic profile is defined by its substantial leverage to silver prices, with 88% of the

projected life-of-mine Net Smelter Return (NSR) revenue generated directly from silver production. The

remaining 12% of the NSR revenue is comprised of by-product metals, including lead (8%), gold (3%),

and zinc (1%), as calculated using the PEA's metallurgical recovery, metal price assumptions, and

payabilities.

Figure 1 - Life-of-Mine Net Smelter Return by Metal

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10393/292137_silvercofig1.jpg

Mining activities will focus on three primary zones: Promontorio, San Miguel, and Eduwiges. Initial

production will prioritize the Promontorio zone to leverage extensive existing underground infrastructure

and advanced mine development. Development of the newly defined San Miguel zone is slated to

proceed concurrently, with a target to be fully ramped up by the end of H1 2027. The extraction will utilize

conventional sublevel long-hole open stoping in a retreat strategy, performed by specialized contract

miners. To optimize grade delivery, the Company will employ a stockpiling strategy for lower-grade

material.

Table 2: Production Schedule

Units

Y-1

Y8-9

LOM

Mill Feed

Milled (kt)

370

432

554

3,556

Ag Feed Grade

g/t

175.3

162.6

186.7

160.3

193.5

125.6

132.7

158.8

101.3

151.0

Au Feed Grade

g/t

0.06

0.17

0.21

0.22

0.13

0.15

0.10

0.13

0.10

0.15

Pb Feed Grade

0.25

0.50

0.73

078

0.92

1.57

1.15

0.83

0.43

0.85

Zn Feed Grade

0.28

0.46

0.75

1.88

1.21

1.92

1.85

1.18

0.68

1.10

Metal Recovered to Concentrate

Koz

188

1,624

2,178

1,871

2,258

1,465

1,548

1,853

1,516

14,502

Koz

0.1

1.6

2.3

2.4

1.5

1.7

1.0

1.4

13.4

Mlbs

0.2

3.8

6.4

6.8

8.0

13.6

10.1

7.2

4.8

60.9

Mlbs

0.2

2.7

5.2

6.1

8.4

13.3

12.8

8.2

6.1

63.1

AgEq Produced

(1)

koz

198

1,818

2,534

2,346

2,821

2,377

2,308

2,416

1,950

18,768

Payable Metals

Koz

179

1,543

2,069

1,777

2,145

1,392

1,471

1,761

1,441

13,777

Koz

0.0

1.0

1.6

1.7

0.7

1.0

0.3

0.7

0.5

7.4

Mlbs

0.1

2.5

4.9

5.3

6.5

12.1

8.6

5.7

2.9

48.6

Mlbs

0.0

0.4

0.5

0.7

1.1

1.0

0.7

0.1

4.4

AgEq Payable

(2)

koz

181

1,644

2,268

2,037

2,398

1,823

1,766

2,004

1,589

15,711

Units

Y-1

Y8-9

LOM

Notes:

AgEq Produced represents the total value of all recovered metals expressed in silver ounces. This is calculated by converting byproduct

metal production (gold, lead, and zinc) into silver ounces based on the relative value of their price assumptions compared to the silver price

assumption.

AgEq Payable represents the total value of all payable metals expressed in silver ounces. This is calculated by converting byproduct

payable metal (gold, lead, and zinc) into silver ounces based on the relative value of their price assumptions compared to the silver price

assumption.

Figure 2: Life-of-Mine Payable Revenue by Metal and Silver Equivalent Production

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10393/292137_silvercofig2.jpg

The Cusi underground mine is located approximately 120 kilometre ("km") West from the city of

Chihuahua and 20 km south of Cuauhtemoc city. The location allows for access to an experienced

labour pool with a population of more than one million people. Ore will be transported from the mine via

30-tonne highway trucks to the Company's existing 1,200 tpd processing facility, located approximately

40 km from the mining areas. The mill utilizes a conventional comminution and flotation circuit designed

to produce a high-value bulk lead-silver concentrate. The project currently maintains constructed tailings

storage capacity for the first 12 months of production. Permitting is already in place for additional

capacity required by the end of 2027.

Figure 3 and 4 - Cusi Property Location (Left) and Property Claims (Right)

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10393/292137_silvercofig3.jpg

Figure 5 - Cusi Mine Layout

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_005full.jpg

Figure 6 - Promontorio and San Juan Mine Design - Long Section View, Looking North

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_006full.jpg

Figure 7 - San Miguel Mine Design - Long Section View, Looking North

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_007full.jpg

Figure 8 - Eduwiges Mine Design - Long Section View, Looking North

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/10393/292137_67cbaf69f4928a63_008full.jpg

Forecast Operating Cost Estimates

Operating costs were estimated as a combination of historical operating costs at Cusi (based on data

from 2022 and 2023 operations at a reduced throughput), updated with new contractor rates for

development, reagent and consumable pricings, and benchmarked against comparable Mexican

operations.

Operating costs include a contingency of 5%.

Life-of-mine cash operating costs have been estimated at $76.15/t and all-in-sustaining-costs ("AISC")

are estimated at $26.75/AgEq oz.

Table 3: Operating Cost Estimates

Operating Costs

LOM Total ($M)

Unit Cost ($/AgEq oz)

Unit Cost ($/t)

Mining

$139.0

$9.12

$40.27

Processing

$80.2

$5.26

$23.23

General & Administrative

$31.2

$2.04

$9.03

Contingency (5%)

$12.5

$0.82

$3.63

Total Cash Operating Costs

$262.9

$17.24

$76.15

TC/RCs & Royalties

$4.35

$0.29

$1.26

Total Cash Costs

$267.2

$17.53

$77.38

Net Sustaining Capital Costs

$140.6

$9.22

$40.72

Total Site AISC

(1)

$407.8

$26.75

$118.13

Notes:

PEA AISC excludes exploration and corporate costs. AISC does include grade control and infill drilling.

Life-of-Mine Capital Summary

The initial net capital requirements are forecasted to be $19.2 M. This includes revenue contributions

from initial concentrate production during ramp-up. The initial construction capital estimate consists

primarily of mine development at both Promontorio and San Miguel, refurbishment of the existing 1,200

tpd mill, installation of a tailing's thickener for reduced water consumption, capitalized operating costs

during the ramp-up phase, miscellaneous mine and surface infrastructure upgrades, and working capital.

Working capital has been excluded from capital but included within the financial model.

Initial capital

costs include 25% contingency

Sustaining capital is estimated at $140.6 M over the life-of-mine, primarily related to ongoing

underground mine development and associated infrastructure, tailings expansions, underground grade

control drilling, and closure costs.

Sustaining capital includes an average of 22% contingency

Table 4: Life-of-Mine Capital Estimates

LOM Capital

Cost ($M)

Construction Capital

(1)

$47.5

Commissioning Revenue

(2)

($28.3)

Net Initial Capital

$19.2

Sustaining Capital

$109.3

Closure

$31.3

Net Sustaining Capital

$140.6

Total LOM Capital

$159.8

Notes:

Construction capital includes all capital and operating cost from initial restart works to achieving commercial throughput. This period is

forecasted until the end of Q1 2027. Concentrate production is planned to begin at the start of Q4 2026. Continued ramp up to full throughput

is completed by end of H1 2027.

Commissioning revenue is all revenue generated up to the end of Q1 2027.

Metal Price Assumptions

The base case utilizes fixed metal prices for gold, lead, and zinc. Silver uses a simplified silver curve

starting at $65/oz for 2026 and tapering off to a long-term price of $38/oz beginning in year 5. The

average life-of-mine realized price is $44.58/oz. The silver prices in the early years of the project are

based on the restart of production in late 2026, current spot prices and consensus price projections.

Base case silver prices are discounted on average approximately 13% below consensus pricing of 32

banks and financial institutions.

The upside case utilizes a fixed average silver price of $75.00/oz. Other metal prices remain unchanged

from the base case assumptions.

Table 5: Base Case Metal Price Assumptions

Life of Mine

2026

2027

2028

2029

2030+

Ag ($/oz)

$44.58

$65

$60

$55

$45

$38

Au ($/oz)

$3,000

Pb ($/lb)

$0.91

Zn ($/lb)

$1.29

Forecast Return Estimates

The economic analysis outlines a base case after-tax Net Present Value ("NPV") of $104.1M at a 5%

discount rate with a payback of 0.9-years. The upside case outlines an after-tax NPV of $312.2M with a

payback of 0.5-years at the same discount rate.

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