GR Silver Mining

The investment opportunity centers on GR Silver's ability to expand its silver resource base at the San Marcial discovery while simultaneously de-risking the project through integration with the permitted Plomosas Mine infrastructure. The San Marcial deposit demonstrates exceptional drill efficiency metrics, with only 88 holes totaling 15,367 meters delineating 68 million ounces AgEq, translating to 4,425 ounces AgEq discovered per meter drilled. This compares favorably to other recent Mexican silver discoveries: Vizsla Silver's Panuco project achieved 957 ounces per meter across 981 holes, while Prime Mining's Los Reyes project (recently acquired for C$440 million) delivered 1,212 ounces per meter over 654 holes.

Geophysical data indicates that approximately 80% of the chargeability anomaly at San Marcial remains untested, with the mineralized system appearing to represent the upper portions of a larger epithermal system associated with an intrusive porphyry center. Recent 2025 step-out drilling has successfully extended mineralization at least 100 meters beyond the existing resource envelope, with hole SMS25-09 intersecting 75 meters grading 293 g/t AgEq and the discovery of multiple sub-parallel mineralized structures. Notable intercepts include 101.6 meters at 308 g/t Ag, 44.5 meters at 156 g/t Ag, and 1,487 g/t Ag over narrow intervals, with the system remaining open in multiple directions along northeast-trending structural corridors.

Beyond resource expansion, the Plomosas Mine provides optionality for near-term value creation, having historically produced approximately 2 million tonnes between 1986 and 2000, grading 134 g/t Ag, 0.92% Pb, and 1.5% Zn. All necessary mining permits and surface rights are in place, with 21 underground areas accessible for bulk sampling. The company completed a successful bulk sampling program at the nearby San Juan mine in 2024, processing 20,430 tonnes and producing 420 tonnes of concentrate averaging 8,357 g/t Ag and 8.19 g/t Au, demonstrating the technical feasibility of selective mining approaches that could be applied at Plomosas while the broader silver market context and recent M&A activity in the Mexican silver sector supports investment in quality development projects.

The management team and board bring extensive experience in exploration, mine development, and capital markets within Mexico and globally, reducing execution risk and enhancing the probability of converting exploration success into shareholder value. Marcio Fonseca, President and CEO, holds over 30 years of mining and financial industry experience, including senior roles with Echo Bay Mines, Phelps Dodge, and Vale in Latin America, and previously served as Division Director for Macquarie Bank's Metals and Energy division where he managed the C$150 million acquisition of SilverCrest Mines by First Majestic. Eric Zaunscherb, Executive Chairman, brings 30 years of mining equity analysis experience as former Managing Director of Metals and Mining Research at Canaccord Genuity, combining geological background with capital markets expertise for strategic value creation.

Luis Coto, Vice President of Exploration, has over 20 years of district-scale exploration experience, having participated in the discovery of Fortuna Mining's San Jose Mine in Mexico and led the team that defined the Mina Justa copper-gold deposit in Peru for Minsur. Cacho Molina, Country Manager, is a Certified Professional Geologist with 35 years of experience in major Mexican silver projects, having served as Senior Vice President for Mexico at Coeur Mining where he played a central role in the exploration, discovery, and development of the Palmarejo mine, providing valuable local relationships and regulatory knowledge.

The board includes Brent McFarlane with 35 years of mining engineering experience including senior positions at Mexican operations for Minefinders, New Gold, and SilverCrest Mines, and Larry Taddei, former CFO of MAG Silver, bringing expertise in financial reporting, treasury, and ESG policies for Mexican development projects. The team's collective experience spans discovery, development, construction, and operations across multiple jurisdictions with particular depth in Sinaloa, providing relevant operational context for both exploration expansion and potential bulk sampling initiatives.

GR Silver pursues a two-pronged strategy focused on resource expansion at San Marcial while advancing bulk sampling studies at Plomosas, balancing near-term value creation with longer-term resource growth. The primary focus involves step-out drilling at San Marcial to expand the existing 68 million ounce AgEq resource, with the company securing a five-year drilling permit covering both areas enabling continuous exploration without regulatory delays. Phase 1 drilling commenced in July 2025 with 3,000 meters targeting northwestern extensions and parallel breccia zones, and following successful results including the discovery of multiple sub-parallel structures, the company plans an additional 15,000 meters of drilling in H1 2026, targeting a resource update and preliminary economic assessment in H2 2026.

Drill targeting leverages 3D geophysical modeling that identified a large chargeability anomaly associated with an intrusive porphyry system, with primary silver mineralization correlating with the chargeability contact providing a predictive tool for resource expansion. Recent holes successfully tested geophysical anomalies 100-150 meters beyond the resource envelope, validating the geological model and supporting further step-out drilling. The deposit's bulk-tonnage characteristics and shallow depths, with mineralization extending from surface to 800+ meters depth, support open-pit mining scenarios in future studies, while metallurgical recoveries of 94% for silver at San Marcial compare favorably to other Mexican deposits.

Parallel to exploration, GR Silver is advancing engineering studies for a bulk sampling test mining program at Plomosas, having commissioned a preliminary engineering study including metallurgical testing and assessment of on-site pilot plant alternatives with plans to commence selective mining from accessible underground areas in early 2026. The bulk sampling approach serves multiple purposes: providing operating cash flow to partially fund ongoing exploration, generating metallurgical data and grade reconciliation information to refine resource models, and demonstrating technical and social license capabilities to de-risk larger-scale development scenarios. Integration of San Marcial resources with Plomosas infrastructure represents a longer-term strategic initiative, with a potential tunnel connecting the two areas enabling underground access to San Marcial mineralization while utilizing existing Plomosas mining permits and infrastructure, potentially reducing development capital and timelines.

GR Silver completed a C$28.8 million bought deal financing in December 2025, providing sufficient capital to execute planned drilling and engineering programs through 2026, with the financing initially sized at C$13 million but upsized twice due to investor demand indicating strong market support. Pro forma the financing, GR Silver holds approximately C$28.8 million in cash with 488 million shares outstanding and maintains a lean cost structure with quarterly operating expenses averaging C$1-1.5 million, providing funding for approximately 18-24 months of operations. The capital structure includes 119 million warrants at an average exercise price of C$0.25, representing potential additional funding of approximately C$30 million if exercised, with many warrants currently in-the-money at the share price of C$0.42.

With 134 million ounces AgEq in resources and a market capitalization of C$210 million, GR Silver trades at approximately C$1.57 per AgEq ounce, representing a discount to other development-stage silver projects in Mexico such as Vizsla Silver at C$6.87 per ounce. The valuation gap reflects several factors including resource classification, project advancement stage, and market capitalization considerations, but also suggests potential for valuation re-rating as GR Silver advances its project through drilling success and development studies, with historical precedent indicating that resource expansion and conversion from inferred to indicated categories typically drives share price appreciation.

Trading liquidity has improved significantly, with GR Silver ranking among the top 10 volume traders on the TSX Venture Exchange from June to November 2025 with average daily trading volume reaching 6.5 million shares, enhancing the stock's attractiveness to institutional investors who represent approximately 23% of the shareholder base alongside 3% management and insider ownership. The company's share price has demonstrated strong performance, increasing 129.73% year-to-date as of January 5, 2026, reflecting both broader silver market strength and company-specific catalysts including successful drilling results and completion of the financing.

GR Silver Mining presents an investment opportunity in a silver-focused exploration and development company with demonstrated discovery success, systematic resource growth, and near-term catalysts including planned resource expansion drilling and potential bulk sampling operations. The company has efficiently delineated 134 million ounces AgEq since acquiring the Plomosas Project in 2020, with the San Marcial discovery accounting for 68 million ounces from only 88 drill holes, achieving drill efficiency metrics of 4,425 ounces AgEq per meter that compare favorably to recent Mexican discoveries attracting premium valuations. The investment thesis rests on an established resource base that has grown consistently, an extensive geophysical anomaly that remains 80% untested suggesting significant exploration upside, operational optionality through the permitted Plomosas Mine, an experienced management team with track records in Mexican mining, and adequate financing to execute near-term programs.

Recent drilling results validating geological models and extending mineralization beyond existing resources support the probability of continued resource expansion, while the current valuation of approximately C$1.57 per AgEq ounce appears conservative relative to peers and recent transaction multiples, particularly considering the project's infrastructure position, permit status, and exploration potential. The 129.73% share price appreciation year-to-date reflects growing market recognition of asset quality, though the company remains substantially smaller than comparable development-stage silver projects. Primary risks include commodity price exposure, regulatory considerations in Mexico, technical execution challenges, and eventual capital requirements, which the company addresses through polymetallic diversification, established permit positions, systematic drilling approaches, and experienced management.

For investors seeking exposure to silver with exploration leverage and development optionality, GR Silver offers a combination of established resources, efficient discovery capabilities, and clear milestones with H2 2026 targets for resource updates and preliminary economic assessment. While early-stage mining investments carry inherent risks, GR Silver's systematic approach to value creation, demonstrated discovery success at drill efficiency metrics superior to peers, access to permitted infrastructure providing near-term optionality, and favorable comparative valuations suggest potential for continued resource growth and valuation appreciation as the company advances through exploration and development stages.