GR Silver Mining Allocates $28.8M Treasury to San Marcial Drilling & Plomosas Bulk Sampling Program

• GR Silver Mining has secured CAD$28.8 million in funding following a successful December 2025 bought deal, fully financing aggressive step-out drilling at San Marcial alongside bulk sampling engineering at Plomosas Mine.
• The company controls 134 million ounces of silver equivalent resources across wholly-owned Mexican properties, discovering ounces at 4,425 AgEq oz per meter drilled, significantly outpacing peers.
• San Marcial remains 80% untested with 2025 drilling confirming wide, high-grade silver zones including 75m at 293 g/t AgEq, validating a large epithermal system open for expansion.
• Plomosas Mine holds full operating permits, existing underground access, and 100% owned land, enabling low-cost bulk sampling test mining with near-term pilot plant assessment.
• Management targets a resource update and preliminary economic assessment in H2 2026, positioning the company to capitalize on silver prices exceeding US$60 per ounce.

GR Silver Mining has entered 2026 with CAD$28.8 million in treasury and a clear mandate to expand its silver resource base in Mexico's prolific Rosario Mining District. The Vancouver-based explorer closed a $20 million bought deal financing on December 17, 2025, providing the financial runway to execute an aggressive drill program at San Marcial and advance bulk sampling engineering at the fully permitted Plomosas Mine. With silver prices exceeding US$80 per ounce and the metal designated a critical mineral by the United States, GR Silver's timing aligns with structural tailwinds supporting precious metals demand.

The company's Plomosas Project hosts 134 million ounces of silver equivalent in indicated and inferred resources across three deposit areas, with San Marcial representing the highest-grade discovery. Recent drilling has confirmed wide, shallow mineralization along largely untested geophysical anomalies, demonstrating exploration upside that management believes can materially increase the resource base. Meanwhile, the permitted Plomosas underground mine offers accessible bulk mineable stopes and existing infrastructure, de-risking near-term production optionality through test mining programs modeled after the company's successful 2024 San Juan operation.

President and CEO Marcio Fonseca noted:

"The Company is now financially capable to carry-out an aggressive step-out and exploration drilling campaign at San Marcial Area, Plomosas Project, with the goal to significantly increase the NI 43-101 Mineral Resource Estimate, followed by a planned Preliminary Economic Assessment Report in the second half of 2026."

Company Overview

GR Silver Mining (TSXV: GRSL, OTCQB: GRSLF, DEU: GPE) is a precious metals explorer focused on district-scale silver projects in Sinaloa, Mexico. The company's flagship Plomosas Project encompasses three resource areas: San Marcial, Plomosas Mine, and San Juan-La Colorada, totaling 85 million ounces indicated and 49 million ounces inferred silver equivalent as of the May 2023 NI 43-101 technical report. The Rosario Mining District has produced silver for over 500 years, with Plomosas Mine historically processing 2.8 million tonnes at grades averaging 93 g/t silver between 1986 and 2000.

The management team brings decades of discovery and development experience from Echo Bay Mines, Vale, Coeur Mining, and Macquarie Bank, with Executive Chairman Eric Zaunscherb previously serving as Canaccord Genuity's Managing Director for Metals & Mining Research. Country Manager Cacho Molina played a pivotal role in the discovery and development of Coeur Mining's Palmarejo mine as Senior Vice President for Mexico, while VP Exploration Luis Coto participated in defining Minsur's world-class Mina Justa copper-gold deposit in Peru. This technical depth has enabled GR Silver to delineate 68 million ounces of silver equivalent at San Marcial through just 88 drill holes totaling 15,367 meters.

Key Development: $20 Million Bought Deal Financing

GR Silver announced the closing of its bought deal private placement on December 17, 2025, issuing 66.7 million units at CAD$0.30 per unit for gross proceeds of CAD$20 million. The offering included full exercise of the 8.3 million unit over-allotment option, underscoring strong institutional demand. 

The net proceeds will fund step-out and exploration drilling at San Marcial, advance bulk sampling test mining engineering studies at Plomosas Mine, and provide working capital for general corporate purposes. With CAD$28.8 million estimated cash post-closing and minimal debt, GR Silver has eliminated near-term financing risk and can execute its technical programs without dilution through late 2026 or early 2027.

Strategic Significance: San Marcial Resource Expansion

San Marcial hosts 52 million ounces indicated and 16 million ounces inferred silver equivalent at base-case cutoffs of 75 g/t AgEq for open pit and 125 g/t AgEq for underground scenarios. The deposit comprises wide, shallow hydrothermal breccias with silver-dominant mineralization concentrated along the contact of a chargeability geophysical anomaly measuring approximately 5 kilometers across. Only 20% of this anomaly has been tested by drilling, with 2025 step-out holes confirming continuity of high-grade zones 100 to 150 meters beyond the current resource boundary.

Hole SMS25-09 intersected 75 meters at 293 g/t AgEq from 440 to 515 meters depth, including multiple intervals exceeding 1,000 g/t AgEq. This intercept successfully tested 3D geophysical targets and confirmed continuity of the main high-grade mineralized structures at least 100 meters beyond the existing resource shell. The hole encountered wide chlorite-hematite-rich hydrothermal breccia with boiling textures, indicating possible proximity to the high-grade core of an epithermal system that remains open both down-dip and down-plunge.

VP Exploration Luis Coto has over 20 years of experience with district-scale exploration and participated in defining Minsur's Mina Justa copper-gold deposit, providing technical leadership for GR Silver's target generation. The 2025 drilling program identified two distinct mineralized zones spatially associated and controlled by a northeast-southwest structural trend that intersects major northwest-southeast regional structures.

Current Activities: Permitted Drilling & Bulk Sampling Engineering

GR Silver received a five-year drill permit for the San Marcial Area in late 2025, authorizing up to 15,000 meters of step-out and exploration drilling in H1 2026. The permit covers extensions to the northwest, southeast, and along parallel breccia zone targets identified through surface rock sampling and geophysical surveys. Planned drilling will test chargeability anomalies that remain 80% undrilled, targeting resource conversion from inferred to indicated categories and testing for new high-grade silver discoveries outside the current resource envelope.

At Plomosas Mine, GR Silver is advancing a bulk sampling test mining engineering study targeting commencement of underground operations early in 2026. Metallurgical studies are in progress to refine processing parameters, building on successful bulk sampling completed at the nearby San Juan mine in 2024. The San Juan program extracted 20,620 tonnes from January to September 2024 and processed 20,430 tonnes at 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.

Plomosas Mine offers 21 accessible underground areas with historical stopes averaging 93 g/t silver based on historical production records. The mine holds full operating permits, land agreements with local communities, and 100% owned surface rights at the potential plant site, eliminating permitting risks associated with greenfield projects. The company is assessing alternatives to establish an on-site pilot plant capable of processing bulk samples and potentially small-scale production.

Investor Takeaway: Discovery Efficiency & Near-Term Catalysts

GR Silver's discovery efficiency at San Marcial of 4,425 silver equivalent ounces delineated per meter drilled significantly exceeds peers in the Mexican silver space. Vizsla Silver's Panuco project delivered 957 oz/m across 981 holes totaling 373,807 meters, while Prime Mining's Los Reyes (acquired by Torex Gold in October 2025 for CAD$440 million) achieved 1,212 oz/m through 654 holes and 191,451 meters. GR Silver's superior efficiency reflects the wide, bulk-mineable nature of San Marcial's hydrothermal breccias, which average 40 to 75 meters in true width compared to narrower vein systems typical of other Mexican deposits.

The company's current valuation of CAD$210.5 million market capitalization implies CAD$1.57 per silver equivalent ounce in the ground, below the CAD$2.00 to CAD$3.00 range typical for development-stage silver projects in Mexico. Comparable companies with similar resource sizes trade at higher multiples: Apollo Silver (168 Moz AgEq) at CAD$259M market cap implies CAD$1.54/oz, while Silver Tiger (275 Moz AgEq) at CAD$279M implies CAD$1.01/oz. GR Silver's discount reflects its earlier development stage, with no preliminary economic assessment completed to date.

The planned H2 2026 resource update and PEA could narrow this valuation gap if drilling successfully expands indicated resources and demonstrates positive economics at current silver prices. 

The Investment Thesis for GR Silver Mining

• San Marcial's 80% untested geophysical anomaly offers high probability of materially increasing indicated resources through systematic step-out drilling in H1 2026.
• Fully permitted Plomosas Mine with existing underground access enables low-capex test mining and potential pilot plant by late 2026.
• At 4,425 AgEq oz per meter drilled, San Marcial's discovery rate exceeds Mexican silver peer average by 3-4x.
• Silver's critical mineral designation and prices above US$60/oz create favorable backdrop for project valuation re-rating upon PEA completion.
• Executive team delivered SilverCrest Mines acquisition, Palmarejo mine discovery, and Mina Justa copper-gold definition.
• At CAD$1.57 per AgEq oz versus CAD$2-3/oz peer average, successful resource expansion could drive 30-50% appreciation.

GR Silver Mining enters 2026 with the financial capacity and technical roadmap to deliver multiple catalysts that could significantly re-rate the company's valuation. The fully funded CAD$28.8 million treasury eliminates near-term financing risk and enables aggressive step-out drilling at San Marcial, where 80% of a major geophysical anomaly remains untested. Early 2025 drilling confirmed wide, high-grade silver zones extending 100 meters beyond the current resource boundary, validating management's thesis that the deposit represents only the upper portion of a much larger epithermal system.

The company's dual-track strategy of resource expansion at San Marcial and bulk sampling engineering at Plomosas Mine provides near-term production optionality rare among junior explorers. Plomosas holds full operating permits, existing underground access, and 100% owned surface rights, enabling low-capex test mining that could generate cash flow during project de-risking. Management's planned resource update and preliminary economic assessment in H2 2026 will provide the technical framework for investment decisions on development capital and potential strategic partnerships.

Investors seeking exposure to silver's structural demand growth from industrial applications and critical mineral status should monitor GR Silver's drill results throughout 2026. Successful resource expansion could drive 30-50% share price appreciation toward peer valuations of CAD$2-3 per ounce in the ground, while positive PEA economics demonstrating after-tax NPV above CAD$300 million at current silver prices could attract strategic buyers similar to Torex's Prime Mining acquisition.

TL;DR

GR Silver Mining closed a $20 million bought deal in December 2025, bringing treasury to CAD$28.8 million to fund step-out drilling at San Marcial and bulk sampling engineering at Plomosas Mine. San Marcial hosts 68 million ounces silver equivalent discovered through 88 holes at 4,425 oz/m efficiency, with 80% of geophysical anomaly untested. Plomosas Mine holds full permits and underground access for low-capex test mining. Management targets H2 2026 resource update and PEA. Current valuation of CAD$1.57 per oz sits 20-40% below Mexican silver peer average.

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