Update To Carmelitas Project In The Bethania District

VANCOUVER - Kuya Silver Corporation reported that the terms of its agreement to acquire the Carmelitas concessions in Peru have been amended, and Kuya Silver intends to commence initial field work. The acquisition of the three concessions was first announced on May 14, 2021, with the purchase price consisting of cash and common shares of Kuya Silver, to be paid on a schedule over eighteen months. Kuya Silver and the vendor, Freddy Canales, have agreed to amend the terms of the transaction as follows: Earlier issuance of common shares. Kuya Silver has issued 1,084,490 common shares to the vendor, equivalent in value to US$400,000 (at a price of CAD$0.49 per share, equivalent to the 20-day volume-weighted average price (VWAP) ending on September 16, 2022; and New timing for cash payments and increase in cash consideration. Prior to the amendment, Kuya Silver had already paid US$293,500 in cash (including US$42,500 of other costs allocated to the transaction), with US$199,000 remaining to be paid. In accordance with the amended agreement, Kuya Silver paid the vendor US$60,000 on September 15, 2022, and will pay the vendor an additional US$199,000 by November 30, 2022, representing an increase of US$60,000 in the cash consideration. The total purchase price for the Carmelitas concessions, reflecting both cash and common shares, has increased from US$892,500 to US$952,500. Title to the three concessions totaling 800 hectares has already been transferred to Kuya Silver's Peruvian subsidiary, Kuya Silver S.A.C.

Carmelitas Project Update

The Carmelita concessions, and, in particular, the recently past-producing Carmelitas Mine, remain an area of focus for Kuya Silver's regional exploration in the greater Bethania district. Up until 2020, the Carmelitas Mine hosted small-scale silver-lead-zinc production of epithermal-related mineralization, similar to mineralization hosted at the Bethania Mine, which is located only 3 km to the east. To date, Kuya Silver personnel have mapped and observed five veins, of which three saw recent production with access via several horizontal adits in two vertical levels approximately 40 meters apart.