Santacruz Silver Acquires 500-Tonne-Per-Day Milling Facility in Bolivia

Santacruz Silver Mining Ltd. has completed the acquisition of a 500-tonne-per-day (tpd) milling facility in Bolivia, marking a significant step in the company’s expansion plans. The new facility, located approximately 5 kilometres from the company’s Reserva mine, part of the Caballo Blanco group of mines, will provide additional processing capacity to support continued production growth.

The newly acquired facility comprises two 250-tonne-per-day processing circuits, each equipped with selective flotation systems for the recovery of lead and zinc with high-grade silver contents. Arturo Préstamo, Executive Chairman and CEO of Santacruz Silver Mining, commented, "This acquisition is a win-win for Santacruz's operating platform. The addition of 500 tpd of milling capacity gives San Lucas a clear path to continue increasing its volumes, while freeing up capacity at our existing milling facilities for ore from our own mines."

The company expects the facility to be commissioned during the fourth quarter of 2026 and to reach commercial production by year-end 2026. The total investment in the milling facility is expected to be approximately US$14 million, inclusive of acquisition, commissioning, and all costs required to bring the facility to commercial production.

Préstamo further stated, "The new facility also creates a significant opportunity to accelerate growth across our Bolivian operations. We expect the additional processing capacity, together with ongoing mine development, operational optimization initiatives, and increased ore availability, to support continued production growth across Santacruz's platform. As a result, we anticipate increased consolidated production in 2027, while San Lucas is expected to further expand its standalone production, demonstrating the scalability and operating leverage of the Company's vertically integrated Bolivian platform."

The acquisition is part of Santacruz's strategy to leverage its existing infrastructure, expand processing capacity, and maximize production growth while maintaining a disciplined approach to capital allocation. The company has paid US$4.6 million toward the US$9.2 million total purchase price, with the remaining US$4.6 million payable on November 8, 2026, one month following receipt of the milling facility, expected on October 8, 2026. A further US$4.8 million will be allocated to milling upgrades and working capital through commissioning and the achievement of commercial production.