Americas Gold & Silver Puts 90% Recovery Ahead of Speed at Cosalá

• Americas Gold & Silver produced a record 800,458 ounces of silver in the third quarter of 2026, with Cosalá contributing 415,879 ounces, 23% above the second quarter.
• Drilling at Cosalá returned 20.5 meters at 654.7 grams per tonne silver and 1.5% copper, more than 5 times the EC120 2025 Inferred Mineral Resource grade.
• Access to the higher-grade ground is sequenced to avoid giving up 8% to 12% recovery.
• Grinding finer lifted recovery by 8 percentage points, and a third mill already on site is being tied in to process 2,000 tons per day at about 90% recovery.
• Most growth spending is funded from operating cash flow, the approach management says it used at Karora, where $600 million of reinvested cash flow lifted Beta Hunt from 20,000 to 100,000 tons a month.

Americas Gold and Silver Corporation (TSX: USA | NYSE American: USAS) is pacing its Cosalá operations in Sinaloa, Mexico around recovery. Cosalá produced 415,879 ounces of silver in the third quarter of 2026, 23% above the second quarter, and access to the higher-grade ground drilled this year is sequenced to avoid giving up 8% to 12% recovery.

Third Quarter Record Includes a 23% Cosalá Gain

Americas produced 800,458 ounces of silver and sold 860,850 ounces in the third quarter, both records. Cosalá sold 423,141 ounces and produced 736,094 pounds of copper.

Cosalá produced 494,567 silver equivalent ounces, calculated at third-quarter realized prices of US$60.54 per ounce for silver and US$6.41 per pound for copper. Grades stayed strong as Cosalá entered the heart of the EC120 orebody, bolstered by strong muck movement underground.

EC120 Drilling Returns More Than 5 Times Resource Grade

The Cosalá land package lies just outside the town of Cosalá and has been in the company's portfolio for more than 10 years. Mining there started at the Nuestra Señora mine, moved to San Rafael, and a financing package from Trafigura paid for the construction of EC120.

Drilling at Cosalá returned 20.5 meters at 654.7 grams per tonne silver and 1.5% copper. The intercept grades more than 5 times the EC120 2025 Inferred Mineral Resource grade and is just outside that resource boundary. The property also holds 7 other outcropping targets in shallow-plunging orebodies reachable by a tunnel from surface.

Recovery Sets the Pace for Access

Recoveries at the Cosalá mill ran at about 80% to 82% on a coarser grind that maximized throughput. Grinding finer lifted recovery by 8 percentage points and cut the tonnage the mill can handle.

The company is tying in a third mill that already sits on its foundation on site; the tie-in waited on capital. At the finer grind, the mill targets 2,000 tons per day at about 90% recovery.

Chairman and Chief Executive Officer of Americas Gold & Silver, Paul Andre Huet, explained the sequencing of access to the drilled ground:

"Why would we ever try to accelerate and get into that faster and give up 8 to 12% recovery? We would not."

The ounces are in the ground, with holes 30 to 50 meters from the existing resource. A couple more months of drilling will define where waste development and access go, with close to 10 percentage points more recovery targeted as the payoff. Upper San Rafael, which connects to EC120, is targeted for inclusion in mine plans in the second half of 2027 once further drilling adds certainty. Management also says the ounces will likely sell at a higher metal price.

The Karora Record Behind the Approach

Management describes funding growth from operating cash flow as the approach it used at Karora. At Karora, $600 million of cash flow reinvested in the assets took production from essentially zero to close to 200,000 ounces of gold a year and Beta Hunt from 20,000 tons a month to 100,000 tons a month. Americas was named to the 2026 TSX30 ranking, with its dividend-adjusted share price up 477% over 3 years.

Huet tied the Americas approach to his earlier companies:

"It's exactly what we did at Karora. We did it at Klondex. We generate enough cash flow to support the operations and spend the capital on the growth at the same time."

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