GR Silver Pairs De-Risking at 2 Assets With Acquisition Screening Beyond Sinaloa

• GR Silver Mining is focused on advancing & de-risking the Plomosas Project, and any offer for the company is up to shareholders to accept or not.
• Plomosas points to lead & zinc concentrates, while San Marcial is predominantly silver and points to a potential Merrill-Crowe operation producing doré.
• Management is screening potential Mexican acquisitions that could diversify exposure beyond Sinaloa.
• The company describes itself as fully funded with C$26 million in cash as of June 30, 2026, ahead of a resource update & preliminary economic assessment planned for the first half of 2027.
• The company's management team has a track record spanning discovery, project development & global mining mergers & acquisitions, along with an exploration team, access to capital & the ability to work in a challenging environment.

GR Silver Mining (TSXV: GRSL | OTCQX: GRSLF | FRA: GPE) owns 100% of the Plomosas Project in Sinaloa, Mexico, which combines the San Marcial silver discovery with the former Plomosas Mine 5 kilometers to the north. The 2023 NI 43-101 estimate reports 55 million ounces of silver Indicated and 22 million ounces Inferred. Management's stated priority is advancing & de-risking both assets, with acquisition screening alongside the drilling program.

Advancing & De-Risking Are the Company's Focus

President & Chief Executive Officer of GR Silver Mining, Eric Zaunscherb, described the company's focus:

"Truly, what we're doing is advancing the project and de-risking it. And if someone wants to come along and make an offer, that's up to the shareholders to accept or not."

The work is funded. The company says it is fully funded, with C$26 million in cash as of June 30, 2026. Its 5 planned catalysts are a 20,000-meter resource expansion drilling program, a resource update, a preliminary economic assessment (PEA), a bulk sample test mining (BSTM) program, and pilot plant engineering, with the resource update and PEA planned for the first half of 2027. Zaunscherb calls San Marcial the future of the company and said shortening San Marcial's path to cash flow by 1 to 2 years would have a positive effect on net present value for shareholders. The company reports it trades at US$0.67 per ounce against a US$2.13 per ounce peer mean as of November 2, 2026, a 68% discount.

Plomosas & San Marcial Point to Different Products

Zaunscherb describes Plomosas as a classic lead-zinc polymetallic deposit with precious-metal content, which points to lead & zinc concentrates. San Marcial, by contrast, is predominantly silver and points to a potential Merrill-Crowe operation producing doré.

Those lead & zinc concentrates are why the usual parties are in the company's data room, looking at what Plomosas could produce and where they could be involved, and the arrangement could include a strategic partner.

Plomosas has a production record. Grupo Mexico subsidiary IMMSA mined more than 2.5 million tonnes of ore there from 1986 to 2000 and produced more than 67,000 tonnes of lead concentrate and 31,000 tonnes of zinc concentrate. Mexico's environmental regulator, SEMARNAT, confirmed that no new Environmental Impact Authorization is required, as announced on May 21, 2026, and 21 underground areas are accessible for BSTM.

Acquisition Screening Looks Beyond Sinaloa

GR Silver is reviewing potential acquisitions that could diversify risk. The company acknowledges security & other risks in Mexico, and diversification could include another Mexican state if a problem arises in Sinaloa.

Mexico holds many very attractive small projects held back by a lack of capital, in Zaunscherb's assessment. They have not conducted exploration, have limited access to equipment, and in some cases face a difficult security situation. Screening them does not commit GR Silver to a transaction. Zaunscherb described management's responsibility to look:

"I think it's our duty as management of a company that has access to capital to look at some of those other projects to see if there's something that's absolutely compelling."

The company's management team's track record spans discovery, project development & global mining mergers & acquisitions, and Zaunscherb names an exploration team, access to capital & the ability to work in a challenging environment as strengths.

Capital Goes to Drilling, Access & Test Mining

The 20,000-meter drill program at San Marcial is covered by a 5-year drill permit. The best drill results to date at San Marcial, reported on May 19, 2026, returned 45.1 meters true width at 1,623 grams per tonne (g/t) silver, including 8.25 meters at 8,579 g/t. The company reports a historical cost of discovery of C$0.17 (US$0.12) per ounce of silver. Drilling results continue from the program.

The company is spending $1 million to upgrade the Durango access road, including a critical choke point in the final 40 kilometers, which should allow it to expand the drill camp and re-accelerate the drill program. At Plomosas, ongoing studies target an on-site pilot plant or toll milling. Zaunscherb sees toll milling or minegate sales as attractive because they avoid spending $10 million on a small pilot plant and carry lower capital cost and a shorter timeline. Selling at minegate also lowers execution risk. The road work targets a faster drill pace ahead of the resource update & PEA planned for the first half of 2027.

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