Salazar Resources Reports El Domo After-Tax NPV (8% Discount Rate) of US$573 Million, Representing a 121% Increase Compared to the October 2021 Feasibility Study. Updated Mineral Resources, Mineral Reserves and Enhanced
NEWS RELEASE
SALAZAR RESOURCES REPORTS EL DOMO AFTER-TAX NPV (8%
DISCOUNT RATE) OF US$573 MILLION, REPRESENTING A 121%
INCREASE COMPARED TO THE OCTOBER 2021 FEASIBILITY STUDY.
UPDATED MINERAL RESOURCES, MINERAL RESERVES AND ENHANCED
PROJECT ECONOMICS FOR THE CURIPAMBA–EL DOMO PROJECT, ECUADOR.
Vancouver, BC July 15, 2026
Salazar Resources Limited (TSX -V: SRL) (OTCQB: SRLZF) (Frankfurt: CCG.F) ("Salazar" or the
"Company") is pleased to provide an update on the Curipamba– El Domo polymetallic project ("El
Domo" or the "Project"), located in the Bolívar and Los Ríos provinces of Ecuador. The update is
based on an independent NI 43- 101 Technical Report prepared by SRK Consulting (China) Ltd.
("SRK") for the Project operator, Silvercorp Metals Inc. ("Silvercorp"), with an effective date of
December 31, 2025 and issued on May 31, 2026 (the "2025 Technical Report") , and includes a
comparison with the October 26, 2021 Feasibility Study (the "2021 FS"). Salazar retains a 25%
carried interest in the Project, while Silvercorp holds the remaining 75% interest and serves as the
operator.
“The new economic analysis in the 2025 Technical Report significantly upgrades our flagship
asset, directly benefiting every Salazar Resources shareholder. The new study confirms the
quality of the deposit and reflects a meaningful increase in after -tax net present value, while
additional mineralized material remains in place with the potential to further extend the mine's
operating life. This is positive news for Salazar, our loyal shareholders, the local communities
and all stakeholders. W ith construction on track, and first production expected in 2027, El
Domo is transitioning from study to cash generation. Through our fully carried 25% interest,
shareholders gain exposure to a producing copper -gold asset without further development
funding, positioning the Company for a durable future cash flow stream.”
— Fredy Salazar, CEO, Salazar Resources
Key Highlights
Mineral Resource:
• Measured + Indicated (M+I) Mineral Resources increased by 27%, from 9 Mt to 11.4 Mt,
grading 1.85% Cu, 2.11 g/t Au, 2.42% Zn, 0.22% Pb, and 41.69 g/t Ag.
• Inferred Mineral Resources increased by 245%, from 1.1 Mt to 3.8 Mt, grading 0.46% Cu,
0.97% Zn, 0.13% Pb, 0.80 g/t Au, and 28.49 g/t Ag.
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El Domo Project Mineral Reserves:
• Mineral Reserves (Proven + Probable): 7.13 Mt, an increase of 10% compared to the 6.48
Mt reserves reported in the 2025 Technical Report.
• The metal content of the reserves increased by 10% for copper (137.7 kt), 11% for gold
(584 koz), 16% for zinc (187.7 kt), 14% for lead (18.4 kt), and 15% for silver (11.0 Moz).
Update on the Analysis of Economic Data for the El Domo Project:
• After-Tax NPV (8% discount rate) is US$573 million, representing a 121% increase compared
to the October 2021 Feasibility Study. After-Tax NPV (5% discount rate), is US$ 705.6 million
according to the updated economic analysis.
• Construction of El Domo is fully funded, and production of the first commercial concentrates
is expected to begin in mid-2027.
• The El Domo Project is currently under construction, with a mine life of 13 years processing
666,000 metric tons of mineralized material per year. This mine life includes the approximately
1.5 years of mine construction.
• Salazar’s 25% interest is fully carried through to commercial production, with no additional
development or construction financing obligations.
Project Overview
SRK Consulting (China) Ltd. ("SRK"), an independent consulting firm, was engaged by Silvercorp
Metals Inc. to prepare an update to the Mineral Resource estimate and the Feasibility Study published
on October 26, 2021, for the El Domo polymetallic project, located in Las Naves Canton, Bolívar
Province, Ecuador. SRK commenced work in November 2025 and delivered the independent
Technical Report in May 2026.
For the Curipamba– El Domo Project, Salazar holds a 25% interest, while Silvercorp holds the
remaining 75% interest and is the operator.
Updated Mineral Resource Estimate as of December 31, 2025
The current Mineral Resource estimate is based on information obtained from 427 diamond drill holes,
totaling 79,357 metres, completed between 2007 and 2024. This updated Mineral Resource estimate
(since the latest NI 43-101 Technical Report dated October 26, 2021) includes 28 additional infill drill
holes completed within the open pit and underground areas, as well as 8 drill holes completed for
metallurgical testing.
Measured + Indicated (M+I) Mineral Resources total 11.4 Mt, grading 1.85% Cu, 0.22% Pb, 2.42%
Zn, 2.11 g/t Au, and 41.69 g/t Ag (containing 211.6 kt Cu, 25.2 kt Pb, 275.9 kt Zn, 775 koz Au, and
15.3 Moz Ag). In addition, Inferred Mineral Resources total 3.8 Mt, grading 0.46% Cu, 0.13% Pb,
0.97% Zn, 0.80 g/t Au, and 28.49 g/t Ag (containing 17.6 kt Cu, 5.0 kt Pb, 37.1 kt Zn, 98.0 koz Au,
and 3.5 Moz Ag).
See Table 1 for a full summary of Mineral Resource Statement for El Domo Project, as of December
31, 2025.
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Table 1. Mineral Resource Statement for El Domo Project, as of December 31, 2025
Notes:
1 CIM (2014) definitions were followed for Mineral Resources.
2 Mineral Resources are reported above an NSR cut-off value of US$38/t for potential open pit Mineral Resources, and the
underground portion are reported using an NSR cut-off value of US$100/t NSR.
3 The NSR value is based on estimated processing recoveries, assumed metal prices, and smelter terms, which include payable
factors treatment charges, penalties, and refining charges：84.9 *[Cu] (%) +46.9*[Au] (g/t) + 0.6*[Ag] (g/t) + 3.4 *[Pb] (%) +
19.8*[Zn] (%)
4 Mineral Resources are estimated using the metal price assumptions: USD 10,700/t Cu, USD 3,000/ oz Au, USD40/oz Ag, USD
2,300/t Pb, and USD3,220/t Zn.
5 Mineral Resources are inclusive of Mineral Reserves.
6 Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
7 Numbers may not add due to rounding.
See Table 2 and 3 for a comparison of Mineral Resource tonnage, grades, and contained metal
between the 2021 FS published in October 2021 and 2025 Technical Report in December 2025.
[See next page for Tables 2 and 3]
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Table 2. Comparison of Measured + Indicated (M+I) Mineral Resources, October 2021 (2021
FS) and December 2025 (2025 Technical Report)
Parameter FS 2021 SRK 2025 Variation
Measured + Indicated Tonnage and Grades
Tonnage (Mt) 9.0 11.4 +27%
Cu Grade (%) 2.11 1.85 - 12%
Au Grade (g/t) 2.36 2.11 - 11%
Zn Grade (%) 2.59 2.42 - 7%
Pb Grade (%) 0.24 0.22 - 8%
Ag Grade (g/t) 45.00 41.69 - 7%
Contained Metal
Contained Cu (kt) 189.4 211.6 +12%
Contained Au (koz) 680 775 +14%
Contained Zn (kt) 231.7 275.9 +19%
Contained Pb (kt) 21.6 25.2 +17%
Contained Ag (koz) 12,969 15,299 +18%
Table 3. Comparison of Inferred Mineral Resources, October 2021 (2021 FS) and December
2025 (2025 Technical Report)
Parameter FS 2021 SRK 2025 Variation
Inferred
Tonnage (Mt) 1.1 3.8 +245%
Cu Grade (%) 1.72 0.46 - 73%
Au Grade (g/t) 1.62 0.80 - 51%
Zn Grade (%) 2.18 0.97 - 56%
Pb Grade (%) 0.14 0.13 - 7%
Ag Grade (g/t) 32 28.49 - 11%
Contained Metal
Contained Cu (kt) 18.5 17.6 −5%
Contained Au (koz) 57 98 +72%
Contained Zn (kt) 23.6 37.1 +57%
Contained Pb (kt) 1.5 5.0 +233%
Contained Ag (koz) 1,118 3,524 +215%
While reported grades for the Mineral Resources are lower than in the 2021 FS, total contained metal
increased across all payable metals. The change in grade primarily reflects: (i) a higher open-pit NSR
cut-off value (US$38/t versus US$29/t in 2021); (ii) materially higher metal price assumptions, which
brought additional lower -grade material into the resource envelope; and (iii) the incorporation, at
higher metal prices, of material previously modelled as a separate underground resource into the
open-pit envelope. Grades for the Mineral Reserves are unchanged to slightly higher than in the 2021
FS.
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Mineral Reserve Statement for El Domo Project (Open Pit) as of
December 31, 2025
Above a cut-off value of US$55/t, there are 7.13 Mt of Proven and Probable Mineral Reserves at an
average NSR grade of US$312/t.
Proven and Probable Mineral Reserves total 7.13 Mt, grading 2.55 g/t Au, 47.82 g/t Ag, 1.93% Cu,
0.26% Pb, and 2.63% Zn, containing 584 koz Au (+11%), 11.0 Moz Ag (+15%), 137.7 kt Cu
(+10%), 18.4 kt Pb (+14%), and 187.7 kt Zn (+16%).
Note: The percentages shown in parentheses represent the increase in Mineral Reserves and
contained metal relative to the Feasibility Study dated October 26, 2021.
See Table 4 for Mineral Reserve Statement For El Domo Project, as of December 31, 2025.
Table 4. Mineral Reserve Statement For El Domo Project, as of December 31, 2025
Sources: El Domo Project, SRK summarized
Notes:
1 Any differences between totals and sum of components are due to rounding.
2 A Cut-off Value (COV) of 55 USD/t was applied.
3 The COV estimates are based on the forecast prices 2,600USD/oz gold, 31 USD/oz silver, 9,250 USD/t copper， 2,000 USD/t lead,
and 2,800 USD/t zinc.
4 The Mineral Reserves are reported on a metric dry tonne basis.
5 Mineral Resources are inclusive of Mineral Reserves.
6 The Mineral Resources are effective as of December 31, 2025.
See Table 5 for a comparison of Mineral Reserve tonnage, grades, and contained metal between the
October 2021 Feasibility Study and the December 2025 update.
Table 5. Comparison of Minerals Reserves, October 2021 (2021 FS) and December 2025
(2025 Technical Report)
Parameter FS, DRA Oct
26, 2021
SRK Dec 31,
2025 Variation
Tonnage and Grades
Tonnage (Mt) 6.48 7.13 +10%
Cu Grade (%) 1.93 1.93 0
Au Grade (g/t) 2.52 2.55 +1%
Zn Grade (%) 2.49 2.63 +6%
Pb Grade (%) 0.25 0.26 +4%
Ag Grade (g/t) 45.7 47.82 +5%
Contained Metal
Contained Cu (kt) 124.9 137.7 +10%
Contained Au (koz) 524.6 584 +11%
Contained Zn (kt) 161.4 187.7 +16%
Contained Pb (kt) 16.2 18.4 +14%
Contained Ag (koz) 9,516.7 10,960 +15%
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Update on the Analysis of Economic Data for the El Domo Project, as of
December 31, 2025
The cash flow estimate includes only the revenue, costs, taxes, and other factors directly associated
with El Domo Project. The assumptions are as follows:
The ROM (run -of-mine) and final products of El Domo Project, which are lead, zinc, and copper
concentrates, are based on the LOM schedule.
The local currency for El Domo Project is USD and is used for technical-economic analysis.
The effective date is December 31, 2025.
The technical-economic analysis was conducted using conventional Discounted Cash Flow (“DCF”)
techniques. The projection for Project operation shows a positive economic prospect. At a discount
rate of 8%, the NPV of the Project is USD 573 million. The net present values (“NPVs”) at different
discount rates were estimated by SRK through DCF model, presented in Table 6.
The economic analysis was conducted for 7.13 Mt, classified as reserves at the El Domo open -pit
mine, see in Table 7. An additional approx. 8 million tonnes of mineralized material remain within the
Measured & Indicated and Inferred Mineral Resource categories, representing meaningful upside
potential to extend mine life and increase future production as these resources advance toward
Reserve classification.
Table 6. Estimated NPVs at Different Discount Rate, NPV in US$ millions
Table 7. Analysis of Economic Data for the El Domo Project
Open-pit, economic data update DRA, October 26, 2021 SRK, December 31,
2025 Variation
Study Type
Feasibility Study Results
and Updated Mineral
Resources
Technical Report on
Curipamba-El Domo
Polymetallic
—
After-Tax NPV (US$ million, 8%
discount rate) US$259 US$573 +121%
After-Tax IRR (%) 32% 45% +41%—
Payback Period (years) 2.6 3 —
Initial Capital Cost (US$ M) US$248 US$283.7 +14%
Total Estimated LOM operating
cost (US$ million)
US$364
US$416.3 + 14%
Average Unit Cost (US$/t -milled) US$56.21N/A US$58.39 + 4%
Sustaining Capex (US$ million) US$29 US$72.5 + 150%
Closure Cost (US$ million) US$24 US$17.3 - 28%
Total LOM Capital US$ 323M (incl. US$
22M Pre-Construction) US$373.5 +16%
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Open-pit, economic data update DRA, October 26, 2021 SRK, December 31,
2025 Variation
Mine life (years) 10 13 total (≈11.5 operating
+ 1.5 construction) +1.5 operating years
Proven + Probable Reserves 6.48 Mt 7.13 Mt +10%
Nominal processing capacity (tpd/
tpy-annual) 1,850 tpd 666k tpy —
Prices Assumed, DRA, October 26, 2021: US$1,700 Oz of Gold, US$23 Oz of Silver, 7,716 US$/t copper (US$3.5 /lb), US$0.95 /lb of
lead, US$1.20 /lb of zinc
Prices Assumed, SRK, December 31, 2025: US$2,600 Oz of Gold, US$31 Oz of Silver, 9,250 US$/t copper, 2,000 US$/t lead, 2,800
US$/t zinc
Next Steps
In accordance with National Instrument 43-101, the Company will file a technical report prepared for
and addressed to Salazar, supporting the disclosure in this news release, under its profile on
SEDAR+ (www.sedarplus.ca) within 45 days of the date of this news release. The report will also be
made available on the Company's website at www.salazarresources.com.
On behalf of Salazar Resources Limited
Fredy Salazar
President and CEO
For more information, visit Salazar’s website at www.salazarresources.com or contact:
Email: [email protected]
Telephone: +1 (604) 685-9316
Qualified Person
The scientific and technical information contained in this news release is derived from the 2025
Technical Report entitled "Technical Report on the Curipamba– El Domo Polymetallic Project, in
Ecuador", prepared by SRK Consulting (China) Ltd. for Silvercorp Metals Inc., with an effective date
of December 31, 2025. The independent Qualified Persons for the 2025 Technical Report include
Ms. Yanfang Zhao (MAIG), responsible for the Mineral Resource estimate, and Mr. Falong Hu
(FAusIMM), responsible for the Miner al Reserve estimate. The estimates have been classified in
accordance with the 2014 CIM Definition Standards. The 2021 comparative figures are derived from
the Feasibility Study dated October 26, 2021 (the “2021 Technical Report”). Dorota El-Rassi, M.Sc.,
P.Eng, was responsible for the Mineral Resource estimate in the 2021 Technical Report and Daniel
M. Gagnon, P.Eng was responsible for the Mineral Reserve estimate in the 2021 Technical Report.
Mr. Falong Hu (FAusIMM), a qualified person under NI 43-101 who is independent of Salazar, has
reviewed and approved the scientific and technical disclosure in this news release,
References
¹ DRA (2021). NI 43-101 Technical Report – Feasibility Study Curipamba-El Domo Project
²News Release (2021). Adventus and Salazar announce Feasibility Study Results and Updated Mineral
Resources for the Curipamba Copper-Gold Project
³SRK Consulting China Ltd. (2026). Technical Report on Curipamba-El Domo Polymetallic Project, in
Ecuador.
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About Salazar Resources
Salazar Resources Limited is focused on creating value and driving positive change through
mineral discovery, exploration, and development in Ecuador. The Company holds a 25% carried
interest in the Curipamba–El Domo Project, together with a portfolio of 100%-owned copper-gold
exploration projects in Ecuador and carried interests in additional projects.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release
Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian
securities laws. Forward-looking information includes, but are not limited to, statements concerning
the mineral resource and mineral reserve estimates for El Domo and the economic analysis and net
present value of El Domo; estimates of production and the timing of production of first commercial
concentrates from El Domo; the estimated mine life of, and cash flow estimate, from El Domo; the
existence of 8 million tonnes of mineralized material that represent meaningful upside potential to
extend mine life and increase future production; the price of copper, gold and other metals; estimated
ore grades and construction progress; projected cash operating costs and all -in sustaining costs,
availability of and access to funding for operations, construction and development; as well as other
predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as “expects”, “anticipates”,
“believes”, “plans”, “projects”, “estimates”, “intends”, “targets”, “forecasts”, “budgets”, “schedules”,
“potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”,
“might” or “will” be taken, occur or be achi eved, or the negative of any of these terms and similar
expressions).
Forward-looking information is based on the opinions, assumptions, factors and estimates of
management considered reasonable at the date the statements are made, which may prove to be
incorrect. These include, but are not limited to: the specific assumptions set forth in this news release;
the expectations and beliefs of management; that prices for minerals, particularly copper and gold,
remain consistent with expectations; that there are no significant disruptions affecting operations,
including labour, supply, power or security disruptions, damage to or loss of equipment, whether due
to flooding, political changes, title issues, community intervention, environmental concerns, tariffs,
widespread health emergencies, or otherwise; that epidemics, pandemics, or other health crises will
not materially differ from expectations in their effects on operations and workforce; that operations,
development and exploration at the El Domo project proceed on a basis consistent with expectations
and plans and forecasts; that prices for key mining supplies, including labour costs and consumables,
remain consistent with expectations; that the availability and costs of inputs and the price and market
for outputs remain consistent with expectations; that plant, equipment and processes will operate as
anticipated; that there are no material variations in the current tax and regulatory environment; that
foreign exchange rates, taxation levels and social, economic and political conditions remain
substantially consistent with expectations; that Silvercorp will maintain access to surface rights; that
Silvercorp will obtain and maintain government approvals, permits and licenses for its operations,
development and exploration activities at the El Domo project; that Silvercorp can meet its current
and future obligations and access adequate financing, equipment and labour at acceptable rates; and
that estimates, projections, forecasts, studies and assessments are accurate and reliable.
By their very nature, forward-looking information is subject to known and unknown risks, uncertainties
and other factors that could cause actual results to differ materially from those reflected in forward -
looking information, including, without limitation: fluctuating commodity prices; recent market events
and conditions; shares reserved for future issuances; dilution; short selling and hedging activities;
estimation of mineral resources, mineral reserves and mineralization and metal recovery;