Significant Increase Inferred Mineral Resources At Capitan Hill Oxide Gold Deposit

VANCOUVER – Capitan Silver Corp. has completed an updated Mineral Resource Estimate (MRE) for the Capitan Hill Oxide Gold Depositat its Cruz de Plata silver-gold project, located in Durango, Mexico. New pit-constrained MRE defined for Capitan Hill is reported at a 0.18 grams per tonne (g/t) gold (Au) cut-off grade, using a US$2,500 Au price. Inferred Mineral Resources of 39,795,000 Tonnes (t) at 0.41 g/t Au for 525,000 troy ounces (oz) of gold, represents a 115% increase in contained gold ounces compared to the historical block model and the previous MRE. 

The 2025 updated MRE produced an in-pit resource that represents 78% of all the block modelled gold ounces above the lower cut-off at Capitan Hill to date. Only in-pit ounces are reported as part of the MRE. The historical 2020 Capitan Hill MRE reported resources within 150m depth from surface using a cut-off of 0.25 g/t Au, which contained 20,722,000 t at 0.46 g/t Au for 305,000 oz of gold. To allow comparison of pit-constrained contained metal, a conceptual pit based on the 2020 historical MRE parameters and a US$1,500/oz gold price was created to constrain the historical 2020 Capitan Hill MRE. Within this conceptual pit shell, the historical 2020 Capitan Hill MRE contains 15,358,000 t at 0.50 g/t Au for 244,000 oz of gold, using a 0.25 g/t Au cut-off.

The Capitan Hill Gold Deposit is in addition to the Company’s Jesus Maria Silver Trend and represents approximately 1% of the total Cruz de Plata project area. 

The company has planned approximately 2/3 of the expanded 15,000m drill program for 2025 has been completed with only 1/3 of the assay results released; assay results pending for 31 drillholes, with drilling ongoing into Q1 2026; property-wide geophysical survey initiated, results expected in Q1 2026.

Alberto Orozco, CEO, said, “While silver remains our primary focus and the strongest driver of value at Cruz de Plata, the updated in-pit constrained gold resource at Capitan Hill adds real strength to the project. The growth we achieved with limited drilling highlights the quality of the system and the optionality it brings to our silver-focused district.

It’s also worth noting that our team has had tremendous success in the past with deposits like Capitan Hill, where we have advanced and built two similar projects — both on time and on budget, while creating meaningful shareholder value along the way.”