Americas Gold & Silver Removes US$85M in Legacy Metal Obligations, Reaffirms 2026 Silver Guidance

• Americas Gold & Silver eliminated more than US$85 million in legacy precious metal delivery obligations during the second quarter, simplifying its balance sheet while reaffirming 2026 production guidance.
• The second quarter of 2026 production totalled 665,000 ounces of silver, contributing to first-half silver production of 1.5 million ounces.
• The company settled legacy silver and gold delivery obligations through share issuances, a physical gold delivery and proceeds from previously established gold price protection instruments, eliminating more than US$28 million in annual debt servicing obligations.
• Americas Gold & Silver ended the second quarter with an unaudited consolidated cash balance of US$89 million and continues investing in operational improvements at the Galena Complex and Crescent Mine.
• Management plans to advance US$90 million to US$120 million in total capital investments during 2026 while targeting full-year silver production of 3.2 million to 3.6 million ounces.

What Has Happened

Americas Gold & Silver (TSX: USA | NYSE American: USAS) completed transactions during the second quarter that eliminated more than US$85 million in legacy precious metal delivery obligations, simplifying its balance sheet while reporting consolidated silver production of 665,000 ounces. The company also reaffirmed full-year 2026 guidance of 3.2 million to 3.6 million ounces of silver at an all-in sustaining cost (AISC) of US$30 to US$35 per ounce, as operational improvements continue across its producing assets.

Second Quarter Production Supports 2026 Guidance

Americas Gold & Silver produced 665,000 ounces of silver, 2.3 million pounds of lead, 850,000 pounds of copper, 97,000 pounds of antimony and 800,735 silver-equivalent ounces during the second quarter of 2026. Consolidated silver production for the first half of the year reached 1.5 million ounces, with management reaffirming full-year guidance despite production remaining weighted toward the second half as mining rates continue to increase at the Galena Complex.

Operational improvements at Galena continued during the quarter following completion of upgrades to the No. 3 Shaft. The shaft achieved record monthly skipping rates after the installation of a new hoist motor, braking system, and communications infrastructure, thereby increasing ore-handling capacity as underground mining activity ramps up. At the Cosalá Operations in Mexico, commercial production from the EC120 deposit continued to support silver and base-metal output, while exploration activities progressed across the district.

Legacy Delivery Obligations Removed

During the second quarter, Americas Gold & Silver completed two transactions that removed more than US$85 million in variable future precious metal delivery obligations inherited from historical financing arrangements. Unlike conventional debt, these obligations increased in value as silver and gold prices rose, creating liabilities that expanded alongside higher commodity prices. The settlements eliminated commitments linked to future silver and gold deliveries while reducing derivative-related earnings volatility and lowering future debt servicing costs.

The first transaction extinguished a remaining obligation to deliver 592,000 ounces of silver to Sprott Mining Inc. through the issuance of 7.96 million common shares at a deemed price of US$5.57 per share. A second agreement settled an obligation to deliver 8,861 ounces of gold to an affiliate of Royal Gold by issuing 2.65 million common shares at US$5.86 per share, together with the delivery of 5,000 ounces of physical gold. The proceeds of approximately US$7 million from previously established gold price protection instruments substantially offset the cash required for the physical gold settlement.

The settlements eliminated more than US$28 million in annual debt-servicing obligations and removed variable precious-metal delivery commitments, allowing future silver production to be sold at prevailing market prices rather than being committed under legacy agreements.

Capital Directed Toward Operational Growth

Americas Gold & Silver ended the second quarter with an unaudited consolidated cash balance of US$89 million, while US$50 million had been drawn under its US$100 million senior secured credit facility. The strengthened balance sheet provides additional financial flexibility to fund operational improvements and growth projects while reducing future cash requirements associated with the legacy precious metal delivery obligations.

Capital investment during 2026 remains focused on expanding mining capacity and improving operating efficiency at the Galena Complex. Planned initiatives include continued implementation of long-hole stoping, construction of a paste backfill plant, modernisation of underground infrastructure and installation of new flotation cells at the Galena mill, with delivery scheduled during the fourth quarter. The company is also progressing integration of the Crescent Mine, acquired in December 2025, to increase high-grade ore feed into the Galena processing complex and support future production growth.

Executive Vice President of Corporate Development at Americas Gold & Silver, Oliver Turner,  outlined the company's near-term production objectives at Galena:

"We're going to exit this year at 650 tonnes per day. And over the course of the next two years we'll ramp up north of 1,000 tonnes per day. It's all about efficiencies in that mine."

The infrastructure investments completed during the first half of the year are expected to support higher mining rates and improved operating performance as additional production comes online during the second half of 2026.

Operational Priorities for the Second Half of 2026

Americas Gold & Silver reaffirmed full-year 2026 guidance of 3.2 million to 3.6 million ounces of silver at an AISC of US$30 to US$35 per ounce, with production expected to be weighted toward the second half of the year as mining rates continue to increase at the Galena Complex.

The company plans to make total capital investments of US$90 million to US$120 million during 2026, comprising both sustaining and growth capital. Key operational milestones include commissioning the paste backfill plant, installing new flotation cells following their scheduled fourth-quarter delivery and continuing the integration of the Crescent Mine into the Galena mining complex. Exploration also remains a priority, with a 64,000-metre drilling program underway across the Galena Complex, Crescent Mine and the Cosalá Operations to expand high-grade mineralisation and support future mine planning.

At the Cosalá Operations, commercial production from the EC120 deposit is expected to continue contributing to second-half output while exploration programs target opportunities to extend mineralisation across the district. Americas Gold & Silver's priorities for the remainder of 2026 are to increase mining rates at the Galena Complex, complete planned infrastructure upgrades and deliver its reaffirmed production guidance. Progress against those operational milestones will demonstrate whether the company's balance sheet restructuring and operational investments translate into higher production and stronger operating cash flow through the remainder of the year.

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