Kuya Silver Secures Camila Processing Deal

The Ontario-based Kuya Silver Corporation has secured a strategic alliance with SMRL Camila 2008, the company that operates the Camila concentrate plant, to ensure access to the expanding processing throughput at the facility. This partnership, which replaces a previously announced letter of intent, is formalized through a Strategic Toll-Milling and Financing Agreement. Under the amended terms, Kuya Silver will secure guaranteed access to the Camila plant's processing capacity as the company ramps up production at its Bethania silver mine.

The transaction includes a secured loan from SMRL Camila 2008 for $400,000 to finance the expansion of the Camila processing plant to a capacity of approximately 280 wet tonnes per day (tpd). The loan bears an annualized interest rate of 7% for a period of 24 months, with equal monthly repayments. The loan is secured against the plant's equipment and includes a cash sweep from income generated by the plant during the term of the loan.

For the remainder of 2026 and until the end of March 2027, Camila will reserve up to 3,000 tonnes per month (equivalent to approximately 100 tpd) of processing capacity exclusively for Kuya Silver. From April 2027 until the maturity of the loan, Camila will reserve 4,000 tonnes per month (equivalent to approximately 133 tpd) for Kuya Silver. Kuya Silver will have the flexibility to secure additional capacity over and above the reserved levels, with the potential to utilize the plant's full capacity. Favorable commercial terms have been agreed upon, with the processing fee indexed to inflation over the term of the loan.

This strategic agreement provides Kuya Silver with significant operational flexibility to increase its concentrate production, sales, and cash flow as the Bethania mine ramps up production in the short term. Any additional material produced at the Bethania operations in excess of the processing capacity at Camila can be stockpiled for future processing at the Bethania plant or processed at another third-party facility.

Kuya Silver expects to prioritize and accelerate the construction of its fully permitted 350-tpd Bethania plant at site, which would eventually become the primary processing facility for the Bethania mine and the potential satellite deposits located in the surrounding silver district. The company is in the process of updating and optimizing its previous engineering design and cost estimates. Kuya Silver's longer-term plan to construct and process mineralized material at site has remained consistent, and the Company believes that starting this project earlier could be an excellent opportunity to accelerate growth. The Company expects to provide further updates on pre-construction milestones as the project progresses.

National Instrument 43-101 Disclosure The technical content of this news release has been reviewed and approved by Mr. Kevin J. O'Connell, Independent Technical Advisor to Kuya Silver and a Qualified Person as defined by National Instrument 43-101.

Kuya Silver Corporation is a Canadian-based, growth-oriented mining company with a focus on silver. The company operates the Bethania silver mine in Peru, while developing district-scale silver projects in mining-friendly jurisdictions including Peru, Canada, and Saudi Arabia.