Silver Tiger Announces a PEA FOR the Underground with an After Tax NPV of US$304M and an Updated PFS FOR the Stockwork Zone with an After Tax NPV of US$456M at the El Tigre Silver-GOLD Project, Sonora, Mexico
NEWS RELEASE
SILVER TIGER ANNOUNCES A PEA FOR THE UNDERGROUND WITH AN AFTER TAX NPV OF
US$304M AND AN UPDATED PFS FOR THE STOCKWORK ZONE WITH AN AFTER TAX NPV OF
US$456M AT THE EL TIGRE SILVER-GOLD PROJECT, SONORA, MEXICO
HALIFAX, NOV A SCOTIA – January 20, 2026 – Silver Tiger Metals Inc. (TSXV:SLVR and OTCQX:SLVTF)
("Silver Tiger" or the “Corporation”) is pleased to announce the results of a Preliminary Economic Assessment
(“PEA”) on the underground at El Tigre and an updated Pre-Feasibility Study (“PFS”) on the Stockwork Zone for its
100% owned, silver-gold El Tigre Project (the "Project" or "El Tigre") located in Sonora, Mexico. The bolt-on PEA
is centred on the underground mining economics of the high-grade El Tigre, Sulphide, Black Shale and Seitz Kelly
zones. The underground PEA and updated PFS is based on new consensus economics metal prices of $38 per ounce
silver and $3,200 per ounce gold . The PEA mine design can be constructed independently of the Stockwork Zone
development and is focused on the underground Mineral Resource. Prospective areas exist outside of the areas defined
by the PEA and PFS with the historic “El Tigre North Mine” Mineral Resource located 700 metres to the North (see
Exploration Potential section below).
Highlights of the PEA, with a base case silver price of $38/oz and gold price of $3,200/oz are as follows (all figures
in US dollars unless otherwise stated):
• After-Tax net present value (“NPV”) (using a discount rate of 5%) of $304 million with an After-Tax IRR of
42.8% and Payback Period of 2.6 years (Base Case);
• 15-year UG mine life with 3-year historical tailings processing recovering a total of 38 million payable silver
equivalent ounces (“AgEq”) or 453 thousand gold equivalent ounces (“AuEq”), consisting of 34 million silver
ounces and 130 thousand gold ounces;
• Total Project undiscounted after-tax cash flow of $496 million;
• Initial capital costs of $83.5 million, including $10.9 million in contingency costs, over an expected 18-month
build, and sustaining capital costs of $213 million over the life of mine (“LOM”);
• The 2026 PEA mine plan is designed as stand-alone to the PFS, with a potential overlap of initial capital cost
of $17M (e.g., grid power, offices);
• Average LOM operating cash costs of $1,3 51/oz AuEq, and all in sustaining costs (“AISC”) of $2,0 19/oz
AuEq or Average LOM operating cash costs of $16.05/oz AgEq, and AISC of $23.98/oz AgEq;
• Average annual production of approximately 2. 3 million AgEq oz or 27.8 thousand AuEq oz, consisting of
2.1 million silver ounces and 8.0 thousand gold ounces (refer to Table 10 footnotes for conversion to Eq ozs);
and
• PEA Study of the Southern Veins does not include the 38 million ounces AgEq contained in the Northern
Veins (see details in updated Mineral Resource Estimate below).
Highlights of the updated PFS, with new base case silver price of $38/oz and gold price of $3,200/oz are as follows
(all figures in US dollars unless otherwise stated):
• After-Tax net present value (“NPV”) (using a discount rate of 5%) of $456 million with an After-Tax IRR of
65.7% and Payback Period of 1.4 years;
• 10-year mine life recovering a total of 43 million payable silver equivalent ounces (“AgEq”) or 509 thousand
payable gold equivalent ounces (“AuEq”), consisting of 9 million silver ounces and 408 thousand gold
ounces;
• Total Project undiscounted after-tax cash flow of $625 million;
• Initial capital costs of $86.8 million, which includes $9.3 million of contingency costs, over an expected 18-
month build, expansion capital of $20.1 million in year 3 and sustaining capital costs of $6.2 million over the
life of mine (“LOM”);
• Average LOM operating cash costs of $997/oz AuEq, and all in sustaining costs (“AISC”) of $1,238/oz AuEq
or Average LOM operating costs of $11.7/oz AgEq, and all in sustaining costs (“AISC”) of $14.5/oz AgEq;
• Average annual production of approximately 4.8 million AgEq oz or 56.5 thousand AuEq oz; and
• Three (3) years of production in the Proven category in the Phase 1 Starter Pit with 60% of overall final pit
Mineral Reserve in Proven category.
Glenn Jessome, President and CEO, stated “This updated PFS for the Stockwork Zone and initial PEA for the
underground provide the first look at the combined economics of El Tigre. At current spot silver and gold prices, the
Stockwork Zone Project generates an after-tax NPV of approximately $950 million US dollars and the underground
project generates an after-tax NPV of approximately $1.20 billion US dollars at a discount rate of 5%. At current spot
silver and gold prices, the Stockwork Zone Project generates approximately $1.30 billion US dollars of net cashflow
after tax over life of mine and the underground project generates approximately $1.85 billion US dollars of net
cashflow after tax over life of mine. ” Mr. Jessome further stated, “In the backdrop of all -time high silver and gold
prices we are completing detailed engineering and proceeding to build the Stockwork Zone Project .” Mr. Jessome
continued, “The underground at El Tigre is a standalone bolt-on project and we intend to complete development for
this low capex underground project and advance towards production as quickly as possible.”
Underground Preliminary Economic Assessment Summary
The PEA was prepared by independent consultants P&E Mining Consultants Inc. (“P&E”), with metallurgical test
work completed by SGS Lakefield, geotechnical work by WSP Canada Ltd., process plant design and costing by
D.E.N.M. Engineering Ltd., and environmental and permitting led by CIMA Mexico.
The 2026 PEA underground mine and mineral processing plan is scheduled over a production period of ~1 7 years.
The mine plan portion of the Mineral Resource Estimate for the El Tigre 202 6 PEA totals 5.0 Mt at average grades
of 331.7 g/t AgEq, 251.3 g/t Ag, 0.91 g/t Au, 0.03% Cu, 0.10% Pb and 0.17% Zn (base metals provide no economic
benefit under the proposed cyanidation process). Approximately 85% of the mine plan portion of the Mineral
Resource, including historical tailings and low-grade stockpile mineral ization, is classified as Measured and
Indicated.
Following are tables and figures showing key assumptions, results, and sensitivities.
Figure 1: El Tigre –UG PEA Stopes and Development by Zone (Southern Veins)
Table 1: El Tigre UG PEA Key Economic Assumptions and Results
Assumption / Result Unit Value Assumption / Result Unit Value
Plant Feed Processed kt 5,023 Net Revenue US$M 1,665.4
Waste Rock Mined kt 2,439 Initial Capital US$M 83.5
Silver Grade g/t 251.3 Sustaining Capital US$M 213.6
Gold Grade g/t 0.91 Mining and Haulage
Costs $/t processed 62.49
Silver Recovery (UG) % 84 Processing Costs (UG
and Stockpile) $/t processed 41.55 /
24.25
Gold Recovery (UG) % 90 G&A Costs $/t processed 18.71
Silver Price US$/oz 38.00 Operating Cash Cost US$/oz
AgEq
16.0
Gold Price US$/oz 3,200 All-in Sustaining Cost US$/oz
AgEq
24.0
Payable Silver Metal Moz 33.6 After-Tax NPV
(5% discount) US$M 304.0
Payable Gold Metal koz 130 Pre-Tax NPV
(5% discount) US$M 487.3
Payable AgEq Moz 38.5 After-Tax IRR % 42.8
Production and
Reclamation years 18 Pre-Tax IRR % 65.2
Average Feed Processed tpd 800 After-Tax Payback
Period years 2.6
Figure 1: El Tigre Underground Stope and Development Visualization
Figure 2 : El Tigre UG PEA Cash Flow Profile by Year
Figure 2 above highlights the after-tax cash flows of $496 million associated with the UG component of the Project.
The economics of the Project have been evaluated based on the base case scenario $38/oz silver price, and gold price
of $3,200/oz. As illustrated in the following sensitivity tables, the Project remains robust even at lower commodity
prices or with higher costs.
Table 2: El Tigre PEA Gold and Silver Price Sensitivities
Sensitivity -20% -10% Base
Case +10% +20%
Silver Price (US$/oz) 30 34 38 42 46
Gold Price (US$/oz) 2,560 2,880 3,200 3,520 3,840
After-Tax NPV (5%) (US$M) 153.9 229.1 304.0 378.9 453.9
After-Tax IRR (%) 24.8 33.8 42.8 51.8 61.0
After-Tax Payback (years) 3.5 3.0 2.6 2.2 1.9
Table 3: El Tigre PEA Operating Cost and Capital Cost Sensitivities
Sensitivity -20% -10% Base
Case +10% +20%
Operating Costs – NPV5 (US$M) 354.9 329.5 304.0 278.6 253.2
Operating Costs – IRR (%) 48.2 45.5 42.8 40.1 37.4
Capital Costs – NPV5 (US$M) 337.1 320.6 304.0 287.5 271.0
Capital Costs – IRR (%) 55.1 48.4 42.8 38.1 34.0
Capital and Operating Costs
Capital and Operating costs are listed in Table 4 below. The El Tigre Underground Project has been envisioned as an
independent underground operation at a processing rate of 800 tonnes per day with a mine life of 15 years. Before
full UG production, historical stockpile material (119 kt @176 g/t Ag and 0.85 g/t Au) is processed in Year-1. After
UG production is complete in Year 1 5, historical tailings (904 kt @ 77.6 g/t Ag and 0.27 g/t Au) will be processed
for an additional three years.
If the 2026 PEA mine plan was to be implemented after mining commenced as detailed in the PFS sections of th e
Technical Report, there would be a potential savings in PEA initial capital costs of approximately $17.0M. The
savings would consist of infrastructure such as the electrical powerline for grid power, and camp and office facilities,
plus much of the owner’s costs.
Water supply to the process plant is provided by pumping nearby water from dewatering wells to the process area
water distribution system , and high voltage grid power will be installed by the local utility to supply process and
infrastructure electrical requirements.
Table 4: LOM Capital Cost Estimate
2026 PEA Capital Cost Summary
Item
Initial Sustaining Total
($k) ($k) ($k)
Process Plant Directs 22,298 - 22,298
Process Plant Indirects 8,811 - 8,811
Underground Mining 49,518 173,508 223,026
Infrastructure 6,449 - 6,449
Dry Stack Tailings 3,978 12,230 16,208
Owner’s Costs 10,743 - 10,743
Pre-production revenues (29,175) - (29,175)
Subtotal 72,622 185,738 258,360
Contingencies @ 15% 10,893 27,861 38,754
Total 83,515 213,599 297,114
Mining
The El Tigre Underground Project is planned as a contractor-operated longhole mining operation with cemented paste
backfill supplemented by minor mechanized cut and fill mining and recovery of existing low grade and tailings
stockpiles. Underground mining contributes approximately 4,000 kt of mineralized material, with 119 kt from a n
historical low grade stockpile and 904 kt from a n historical tailings stockpile, for a total of 5,022.8 kt grading over
the LOM on average 331.7 g/t AgEq, 251.3 g/t Ag, 0.91 g/t Au, 0.033% Cu, 0.099% Pb and 0.166% Zn; base metals
provide no economic benefit under the cyanidation process. Underground production is scheduled at 290 kt per annum
(“ktpa”), giving an underground mine life of approximately 15 years and an overall Project life of approximately 18
years. Process plant commissioning with low grade stockpile material is planned in Year -1, and processing of
historical tailings stockpile at 365 ktpa is scheduled for three years after underground mining is depleted.
Metallurgy
A metallurgical test program was carried out by SGS Lakefield of Ontario, Canada. The program included grinding
and flotation work. The samples comprised of drill core sampling rejects representing the various zones of the Mineral
Resource. This test program estimated average gold and silver respective hardrock metallurgical recoveries of 84.4%
and 89.7% for silver and gold respectively . While base metals were recoverable, it was determined that the mined
value of copper, lead and zinc does not justify the recovery cost of their respective metallurgical circuits.
Stockwork Zone Updated Pre-Feasibility Study Summary
The updated PFS used higher metal prices than the 2024 PFS (see release dated Oct 22, 2024) and was prepared by
independent consultants P&E Mining Consultants Inc. (“P&E”), with metallurgical test work completed by
McClelland Laboratories, Inc. , Sparks, Nevada, process plant design and costing by D.E.N.M. Engineering Ltd.,
environmental and permitting led by CIMA Mexico and geotechnical design by WSP Canada Ltd.
The base case LOM is scheduled over a period of ten years (one year of preproduction and nine production years) .
The Proven and Probable Mineral Reserve Estimate for the El Tigre Project totals 40.3 Mt at average grades of 0.40
g/t Au and 14.9 g/t Ag. Approximately 60% of the Mineral Reserve is classified as Proven.
Surface mining will be initiated in Year -1 (pre-stripping period) and will be completed in Year 9. The initial ore heap
leaching rate (Years 1 to 3) is 7,500 tpd (2.74 Mta). In Year 4 the crushing rate will increase to 15,000 tpd (5.5 Mtpa)
and this rate is maintained to the end of the mine life. The El Tigre Mine is planned to be a contract mining operation.
Over the LOM, 68.3 Mt of waste rock will be mined, with 40.3 Mt ore, for a total of 108.6 Mt at a strip ratio of 1.7:1.
After-Tax net present value (“NPV”) (using a discount rate of 5%) of $456 million with an After-Tax IRR of 65.7%
and Payback Period of 1. 4 years over 10 -year mine life recovering a total of 43 million payable silver equivalent
ounces (“AgEq”) or 50 9 thousand payable gold equivalent ounces (“AuEq”), consisting of 9 million silver ounces
and 408 thousand gold ounces. Total Project undiscounted after-tax cash flow of $625 million with initial capital costs
of $86.8 million, which includes $9.3 million of contingency costs, over an expected 18-month build. An expansion
capital allocation of $20.1 million is planned in year 3 with sustaining capital costs of $6.2 million over the life of
mine (“LOM”). Following are tables and figures showing key assumptions, results, and sensitivities.
Table 5: El Tigre PFS Key Economic Assumptions and Results(1-2)
Assumption / Result Unit Value Assumption / Result Unit Value
Total OP Plant Feed Mined kt 40,292 Net Revenue US$M 1,623.9
Operating Strip Ratio Ratio 1.7:1 Initial Capital Costs US$M 86.8
Silver Grade1 g/t 14.9
Expansion Capital
Costs US$M 20.1
Gold Grade1 g/t 0.40
Sustaining Capital
Costs US$M 6.2
Silver Recovery (Oxide/Sul.)2 % 45 / 40 Mining Costs $/t Material 2.24
Gold Recovery (Oxide/Sul.)2 % 83 / 56
Processing Costs
(Phase 1 and Phase 2) $/t Feed 5.79/4.74
Silver Price US$/oz 38.00 G&A Costs $/t Feed 1.27
Gold Price US$/oz 3,200
Operating Cash Cost US$/oz
AgEq 11.7
Payable Silver Metal Moz 8.57
All-in Sustaining Cost US$/oz
AgEq 14.5
Payable Gold Metal koz 408
After-Tax NPV (5%
discount) US$M 455.6
Payable AgEq Moz 42.9
Pre-Tax NPV (5%
discount) US$M 737.2
Mine Life Yrs 10 After-Tax IRR % 65.7
Average mining rate t/day 30,000 Pre-Tax IRR % 87.7
After-Tax Payback
Period Yrs 1.4
1. Grades shown are LOM average process plant feed grades include only OP sources. Mining losses and external dilution of 3.7% were incorporated
in the mining schedule.
2. Column testing indicated both variable gold and silver recovery for the oxide material vs the previously reported non-discounted PEA (83% and 64%)
at a 3/8-in crush size. In the process design and financial model for the PFS process design and financial mo del recoveries have been discounted by
3% for leaching in the field versus optimum conditions in the laboratory and shown accordingly. The presence of transition an d sulphide zones has
affected both the gold and silver recoveries and are shown as separate recoveries. These are reasonable and appropriate for use in this PFS design and
economic analysis.
Figure 3: PFS El Tigre Cash Flow Profile by Year
Figure 3 above highlights the after-tax cash flows of $625 million associated with the El Tigre Project. The economics
of the Project have been evaluated based on the base case scenario $ 38/oz silver price and gold price of $ 3,200/oz.
As illustrated in the following sensitivity tables, the Project remains robust even at lower commodity prices or with
higher costs.
Table 6: El Tigre PFS Gold and Silver Price Sensitivities
Sensitivity -20% -10% Base
Case +10% +20%
Silver Price (US$/oz) 30 34 38 42 46
Gold Price (US$/oz) 2,560 2,880 3,200 3,520 3,840
After-Tax NPV (5%) (US$M) 303.9 379.8 455.6 531.5 607.4
After-Tax IRR (%) 49.9 58.1 65.7 73.0 79.9
After-Tax Payback (years) 1.7 1.5 1.4 1.3 1.2
Table 7: El Tigre PFS Operating Cost and Capital Cost Sensitivities
Sensitivity -20% -10% Base
Case +10% +20%
Operating Costs – NPV5 (US$M) 502.0 478.8 455.6 432.5 409.3
Operating Costs – IRR (%) 70.7 68.2 65.7 63.2 60.6
Capital Costs – NPV5 (US$M) 470.2 462.9 455.6 448.3 441.0
Capital Costs – IRR (%) 77.7 71.2 65.7 61.1 57.0
Capital and Operating Costs
The El Tigre Project has been envisioned starting at a processing rate of 7,500 tonnes per day for years 1-3 and then
15,000 tonnes per day by year 4 after 1.5 years of construction for ramp up in year 3.
The process plant is comprised of conventional three (3) stage crushing to an optimum -3/8 inch (10 mm) crush size.
The crushed material will be conveyed and loaded on the lined pad areas. A series of pumping and piping will allow
irrigation of the stacked heap material and subsequent production of pregnant solution to flow to the respective
impoundment pond. The pregnant solution will be pumped to the recovery facility consisting of the Merrill – Crowe
process (zinc precipitation) and refinery to produce the gold and silver dore for marketing. The process barren solution
will be recycled (with NaCN addition) and pumped back to the heap for further leaching. The process plant location
will be adjacent to the pad and pond infrastructure area.
Water will be supplied from dewatering wells. Power to the El Tigre Property will be supplied by the national grid
via a 72 km 34.5 kV overhead power line. The routing of the power line will be from Nacozari de Garcia. Overhead
power lines will connect 13.8 kV, three phase and 60 Hz via a sub -station located near the process plant area.
Expansion capital includes the cost to increase the process plant capacity from 7,500 tonnes per day to 15,000 tonnes
per day as noted in Year 4 of operation.
Life of Mine (LOM) capital costing is listed below in Table 8, indicating Initial, Expansion and Sustaining Capital:
Table 8: LOM Capital Cost Estimate
Type
Initial Expansion Sustaining Total
(US$k) (US$k) (US$k) (US$k)
Process Plant direct costs 42,851 13,584 1,600 58,034
Mining direct costs 2,660 4,362 3,956 10,978
Pre-stripping 3,362 3,362
Infrastructure 20,489 20,489
Process indirect costs
(with EPCM) 8,121 8,121
Total 77,483 17,946 5,556 100,985
Contingency (12%) 9,298 2,199 622 12,118
Total with Contingency 86,780 20,145 6,178 113,103
Mining