GR Silver Completes $17.5M Financing for Mexico Growth

• GR Silver Mining secured $17.5 million through an upsized bought-deal offering to fund aggressive drilling at its San Marcial discovery and advance bulk sampling at the permitted Plomosas Mine in Mexico
• The company controls 134 million ounces of silver-equivalent resources across fully owned Mexican concessions, with 80% of the San Marcial geophysical anomaly still untested
• Recent step-out drilling intersected 75 meters at 293 g/t silver-equivalent, confirming mineralization continuity 100 meters beyond the existing resource area
• With C$28.8 million in estimated cash post-closing, GR Silver is fully funded to execute its 2026 resource update and preliminary economic assessment without near-term dilution
• The financing closes as silver prices reached $59.165 per ounce on COMEX and all-time highs on India's MCX, driven by currency weakness, Federal Reserve rate-cut expectations, and supply constraints

Silver Prices Hit Records as Junior Secures Growth Capital

GR Silver Mining Ltd. has positioned itself at the intersection of favorable commodity pricing and aggressive exploration funding. The Vancouver-based junior announced December 1, 2025, that it increased its previously announced bought-deal offering to $17.5 million, providing the financial runway to advance its wholly owned Plomosas Project in Sinaloa State, Mexico. The financing comes as silver futures climbed to unprecedented levels on India's Multi-Commodity Exchange, with March 2026 contracts reaching ₹184,727 per kilogram, while COMEX January 2026 delivery contracts rallied to $59.165 per troy ounce.

The timing reflects strategic capital allocation during a period of heightened institutional interest in silver-focused equities. Market observers cite multiple tailwinds supporting silver's ascent, including weakness in emerging market currencies against the U.S. dollar, speculation around Federal Reserve monetary policy shifts, and reduced silver inventories in major consuming nations. These macroeconomic factors have translated into increased investor attention on development-stage silver projects with near-term production potential and resource expansion upside.

For GR Silver Mining, the upsized financing represents a significant endorsement of its two-pronged development strategy. The company has delivered consistent share price performance throughout 2025, posting year-to-date gains of 71.01% as of December 1, while maintaining top-10 volume trader status on the TSX Venture Exchange with average daily liquidity of 6.5 million shares during the June-to-November period. This liquidity profile distinguishes GR Silver from many junior exploration peers and facilitates institutional participation in the equity.

Company Overview: Concentrated Exposure to Mexican Silver

GR Silver Mining operates as a Mexico-focused junior mineral exploration company with 100% ownership of assets located on the eastern edge of the Rosario Mining District in southeastern Sinaloa State. The company's flagship Plomosas Project encompasses 78 square kilometers of highly prospective concessions that include the former Plomosas underground mine, which produced silver, gold, lead, and zinc between 1986 and 2000. This past-producing status provides GR Silver with permitted infrastructure, including 21 accessible underground areas suitable for bulk sampling programs.

The company's resource base, as defined in its May 2023 National Instrument 43-101 technical report, totals 134 million ounces of silver-equivalent across three distinct areas. The San Marcial Area contributes 52 million ounces silver-equivalent in the indicated category and 16 million ounces silver-equivalent inferred. The Plomosas Mine Area adds 31 million ounces silver-equivalent indicated and 17 million ounces silver-equivalent inferred. These resources are calculated using metal prices of $22.00 per ounce for silver, $1,750 per ounce for gold, $1.10 per pound for lead, $1.30 per pound for zinc, and $4.20 per pound for copper, with area-specific metallurgical recoveries ranging from 71% to 94% for silver.

The management team brings operational and financial experience from major producers. President and CEO Marcio Fonseca previously held senior roles with major international mining companies in Latin America, complemented by investment banking experience as former Division Director for Macquarie Bank's Metals and Energy group, where he managed a $150 million acquisition transaction. Executive Chairman Eric Zaunscherb served as Managing Director of Mining Research at Canaccord Genuity, bringing three decades of equity analysis expertise to strategic decision-making. Country Manager Ignacio "Cacho" Molina, a Certified Professional Geologist with over 35 years of experience in Mexican silver projects, contributed to the discovery and development of a major silver mine in Mexico during his tenure as Senior Vice President for Mexico operations with a mid-tier producer.

Key Development: Strategic Financing Structure

The December 1 announcement detailed a bought-deal structure totaling $17.5 million, divided between two offerings designed to optimize regulatory efficiency and investor access. Research Capital Corporation serves as sole bookrunner and co-lead underwriter alongside Red Cloud Securities Inc. The transaction consists of 33,334,000 units priced at $0.30 per unit for gross proceeds of $10,000,200 under the Listed Issuer Financing Exemption, commonly known as the LIFE Exemption. An additional 25,000,000 units will generate $7,500,000 through a concurrent private placement pursuant to National Instrument 45-106 prospectus exemptions.

Each unit comprises one common share and one-half of one common share purchase warrant. Full warrants entitle holders to acquire additional common shares at an exercise price of $0.42 per share for 36 months following closing, scheduled for the week of December 15, 2025. The underwriters received an over-allotment option exercisable up to 48 hours prior to closing, permitting increases of 3,999,333 LIFE units and 4,333,500 private placement units. If exercised in full, aggregate gross proceeds would reach $20,000,049.90. Underwriter compensation includes a 6.0% cash commission on gross proceeds plus broker warrants equal to 6.0% of units sold, exercisable at $0.30 per unit for 36 months post-closing.

The LIFE Exemption portion carries immediate free-trading status under Canadian securities laws, enhancing liquidity for participating investors and potentially supporting secondary market pricing. Private placement units carry a four-month-plus-one-day statutory hold period from closing. The company directed net proceeds toward advancement of the Plomosas Project, working capital requirements, and general corporate purposes. With an estimated cash position of C$28.8 million following the transaction close, GR Silver has eliminated near-term financing risk and secured capital to execute planned drilling programs through the anticipated H2 2026 resource update and preliminary economic assessment.

Management Perspective on Growth Strategy

President and CEO Marcio Fonseca, who brings over 30 years of mining and financial industry experience including senior roles with major producers and Macquarie Bank, contextualized the financing within the company's broader development trajectory:

"This financing positions GR Silver Mining with the capital required to aggressively pursue resource expansion at San Marcial while simultaneously advancing our permitted Plomosas Mine toward production readiness. We're executing a de-risking strategy that integrates a high-grade silver discovery with existing infrastructure in one of Mexico's most prolific mining districts. With silver prices reaching historic levels and our geological model confirming a district-scale system, we have the funding and the technical foundation to deliver significant value growth over the next 18 months."

Fonseca's comments reflect management's confidence in the geological potential remaining at San Marcial, where systematic drilling continues to intersect wide zones of silver mineralization beyond the boundaries of the current resource estimate. The company's technical team, led by Vice President of Exploration Luis Coto, who previously participated in the discovery of a major mine in Mexico and led exploration at a world-class copper-gold deposit in Peru, has interpreted the San Marcial discovery as representing only the upper portions of a much larger epithermal system.

The financing structure also addresses investor preferences for junior explorers with clear catalyst timelines and operational transparency. By securing funding sufficient to complete a comprehensive drilling program and deliver updated economic studies without additional dilution, GR Silver has positioned itself favorably relative to peers who face recurring financing requirements that compress valuations during capital raises.

Strategic Significance: De-Risking Through Permitted Infrastructure

The Plomosas Project's strategic value extends beyond its resource tonnage to encompass fully permitted mining infrastructure rarely available to junior explorers. The Mexican regulatory framework requires extensive environmental and social impact assessments before granting development and extraction permits. GR Silver inherited permits covering both the historical Plomosas underground mine and exploration activities across the broader concession area, iincluding a five-year drilling permit granted for the San Marcial-Plomosas corridor in September-December 2025. This permitting advantage compresses the typical timeline from discovery to production decision, potentially reducing capital requirements and execution risk.

The company has secured complete land ownership at the Plomosas Mine site, eliminating surface rights negotiations that frequently delay or derail mining projects in Mexico. Land agreements remain in place for other areas of the project, supported by what management characterizes as strong community relationships developed through consistent engagement with local stakeholders. This social license represents an often-underappreciated asset in Latin American mining jurisdictions, where community opposition has halted projects with billions in sunk capital. GR Silver's community investment track record and local employment practices position it favorably for expansion approvals.

Integration of the permitted Plomosas Mine with the expanding San Marcial resource creates optionality around production scenarios. The company has initiated a preliminary engineering study for bulk sample test mining at Plomosas, including metallurgical work and assessment of an on-site pilot plant. A similar program executed at the nearby San Juan mine during 2024 processed 20,430 tonnes through a third-party mill, producing 420 tonnes of lead-silver-gold concentrate averaging 10.43% lead, 8,357 g/t silver, and 8.19 g/t gold. This bulk sampling approach serves dual purposes: validating grade reconciliation models for resource reporting while generating revenue to offset exploration expenditures during the development phase.

Current Activities: Aggressive Step-Out Drilling at San Marcial

GR Silver's operational focus centers on systematic testing of geophysical anomalies at the San Marcial discovery, where approximately 80% of the intrusive-related chargeability signature remains undrilled. The company completed a 3,000-meter step-out program during the September-to-December 2025 period, with assay results continuing to expand the known mineralized envelope. Drill hole SMS25-09 intersected 75 meters at 260 g/t silver, including multiple intervals exceeding 1,000 g/t silver-equivalent. This intersection confirmed continuity of high-grade silver mineralization at least 100 meters beyond the boundary of the existing resource area, demonstrating the system remains open along strike and down-dip.

The geological model interprets San Marcial as a silver-dominant epithermal system hosted along the southwestern edge of a regional porphyry intrusive complex. Surface mapping and drilling have identified wide zones of chlorite-hematite-rich hydrothermal breccia with boiling textures, mineralogical indicators suggesting proximity to the high-temperature core of the epithermal system. Recent drilling discovered multiple sub-parallel silver-mineralized structures controlled by a northeast-southwest structural trend that intersects major northwest-southeast regional faults. Holes SMS25-08 and SMS25-10A intersected separate high-grade zones separated by 150 meters horizontally, indicating the system possesses width in addition to strike length.

The company has designed a 15,000-meter drilling campaign for H1 2026 targeting resource expansion and infill drilling to convert inferred resources to the indicated category. Metallurgical test work proceeds in parallel, with silver recoveries of 94% achieved in previous tests on San Marcial material through conventional flotation. This high recovery rate, combined with the silver-dominant nature of the mineralization, positions San Marcial favorably in jurisdictions where complex metallurgy or penalty elements often constrain project economics. Management has indicated the 2026 drilling program will inform an updated National Instrument 43-101 resource estimate and preliminary economic assessment targeted for H2 2026 completion.

The Investment Thesis for Silver Juniors in a Rising Price Environment

• The C$28.8 million cash position provides 18-24 months of operational flexibility without additional financing requirements.
• At C$146.5 million market capitalization, the company trades at approximately $1.09 per silver-equivalent ounce in situ, below the C$2-4 range typical for advanced-stage Mexican silver projects.
• Projects with existing permits and proven metallurgy reduce the probability of permitting delays or technical failures that commonly impair junior valuations.
• Current spot silver pricing at $59 per ounce exceeds the $22 per ounce assumption in the 2023 resource estimate by 168%, suggesting significant leverage to metal price in economic studies.
• Recent drilling has consistently delivered silver-equivalent grades 1.5x to 2.5x higher than resource block model averages, indicating potential for both tonnage and grade expansion.
• Average daily trading volume of 6.5 million shares during recent months enables meaningful accumulation without significant market impact.

GR Silver Mining presents institutional and retail investors with leveraged exposure to silver price appreciation through a combination of expanding resources, near-term production optionality, and jurisdictional advantages in Mexico's established mining districts. The $17.5 million financing eliminates capital constraints that might otherwise force management to defer high-priority drill targets or rush into suboptimal development timelines. With 80% of the San Marcial geophysical footprint still untested and recent drilling continuing to intersect wide zones of high-grade mineralization, the company has created a pipeline of news flow extending through 2026.

The convergence of record silver prices with the company's exploration funding cycle creates conditions favorable for valuation rerating. Institutional investors typically apply higher valuation multiples to projects demonstrating resource growth in rising commodity price environments, particularly when those projects possess permitted infrastructure that accelerates the path to production decisions. GR Silver's ownership of a past-producing mine with accessible underground workings and an on-site pilot plant assessment in progress provides near-term production scenarios that development-stage explorers typically cannot offer.

The investment case ultimately rests on resource expansion potential in a favorable pricing environment. Investors allocating capital to GR Silver Mining gain exposure to systematic testing of a largely undrilled geophysical anomaly, with visible catalysts in the form of ongoing drill programs, metallurgical studies, and the anticipated 2026 resource update. The company's position as a top-volume TSX Venture trader provides liquidity for position sizing adjustments as new information becomes available. For investors constructing portfolios with graduated exposure across the silver exploration and development spectrum, GR Silver occupies the growth-oriented segment with near-term catalyst visibility and established resource credibility.

TL;DR

GR Silver Mining closed a $17.5M financing to advance its 134Moz silver-equivalent Plomosas Project in Mexico. With C$28.8M cash post-closing, the company is fully funded through 2026 resource catalysts. Recent drilling extended mineralization 100+ meters beyond existing resources at the largely untested San Marcial discovery. The permitted Plomosas Mine provides production optionality while bulk sampling studies advance. Trading at approximately $1/oz in-situ against peers at $2-4/oz, with silver at $59/oz versus $22/oz resource assumptions, the company offers leverage to both resource growth and metal price appreciation. Key risks include single-project concentration and silver price volatility.

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