GR Silver: Positioned for Silver's Historic Rally

• Silver hit an all-time high of $121.62 per ounce on January 29, 2026, gaining 70% in January alone and 279% from its January 2025 starting point, benefiting exploration companies with advanced-stage projects like GR Silver Mining's Plomosas Project in Sinaloa, Mexico.
• The company has secured C$34 million in financing to fund a 20,000-metre drilling program at San Marcial, targeting significant resource expansion in the first half of 2026.
• GR Silver is advancing toward production through bulk sample test mining and pilot plant installation at the permitted Plomosas Mine, with existing infrastructure reducing capital requirements.
• The company is fully funded, debt-free, and well-capitalized, positioning it to execute its 2026 strategy without near-term dilution concerns.
• Planned milestones include an updated mineral resource estimate, preliminary economic assessment, and bulk sampling operations, all scheduled for 2026.

The precious metals sector is experiencing a rally that extends beyond gold's record-breaking performance. Silver has dramatically outpaced gold, rising from approximately $30 per ounce in January 2025 to hit an all-time high of $121.62 on January 29, 2026, representing a gain of 279%. Silver surged 70% in January 2026 alone. This surge comes amid investor uncertainty surrounding US policy shifts and a weakening dollar.

GR Silver Mining Ltd. (TSXV: GRSL), a Canadian-based junior explorer with 100% ownership of the Plomosas Project in Sinaloa, Mexico, has structured its operations to benefit from current market conditions. The company's January 15, 2026 guidance announcement outlined a 2026 program focused on resource expansion, development planning, and advancement toward production. With existing permits, recent equity financing, and multiple near-term catalysts, GR Silver demonstrates how junior miners can leverage favorable commodity cycles to advance projects from exploration toward development.

The combination of elevated silver prices, a funded treasury, and advanced-stage assets makes GR Silver's structure relevant for investors seeking exposure to the silver rally through companies showing operational progress.

Key Development: The 20,000-Metre San Marcial Drilling Campaign

The centerpiece of GR Silver's 2026 strategy is an initial 20,000-metre surface drilling program at San Marcial, scheduled for the first half of the year. This program represents an escalation of exploration activity, utilizing multiple drill rigs to accelerate resource delineation and test geological theories developed through recent 3D modeling work. The company's understanding of structural controls on high-grade silver mineralization has enabled management to design drill programs aimed at expanding the current National Instrument 43-101 Mineral Resource estimate completed in 2023. President and CEO Márcio Fonseca stated:

"GR Silver Mining is one of the few silver-focused explorers demonstrating consistent success in adding ounces at attractive discovery and drilling costs." 

The San Marcial program will focus on shallow, high-grade silver mineralization, testing for extensions of known zones and potential parallel discoveries outside the 2023 resource footprint.

A target for 2026 drilling includes recently discovered shallow parallel breccias located outside the 2023 Mineral Resource estimate area. These parallel structures have not been systematically tested. The company plans to incorporate drilling results into an updated mineral resource estimate targeted for the second half of 2026.

Strategic Significance: From Exploration to Development

GR Silver's 2026 strategy reflects a transition from exploration toward development activities, evidenced by parallel advancement of bulk sample test mining and pilot plant installation at the Plomosas Mine. The company has completed metallurgical test work, basic engineering studies, and initial pilot plant design. Management is currently evaluating three options for pilot plant installation: purchasing and relocating existing Mexican plants, fabricating new equipment, or combining portions of existing plants with newly sourced equipment. Fonseca added: 

"We see the Plomosas Mine's existing permits as a key advantage that allows us to streamline pilot operations and validate our metallurgical assumptions before committing to full-scale production." 

GR Silver can leverage this permitted infrastructure to generate early cash flow and validate metallurgical assumptions before committing to full-scale production decisions. The company has added experienced personnel in Mexico, including Jorge Sanchez, former Technical Services Manager at Los Filos, Los Gatos, and San Dimas operations.

Environmental and permitting work continues in parallel with operational planning. The company received a five-year drilling permit at San Marcial in September 2025 and is advancing environmental studies to support underground drilling, including preparation of a Manifesto de Impacto Ambiental for this activity.

Current Activities: Building the Foundation

GR Silver's current activities reflect preparation for development-stage operations. The company has appointed a Country Manager with experience in large-scale silver-gold operations, bringing expertise in legal, regulatory, and governmental affairs at local, state, and national levels. This appointment addresses a requirement for companies operating in Mexico, where navigation of regulatory frameworks requires both technical competence and relationship-building capabilities.

The company is advancing a gap analysis to identify studies required for the first integrated development plan for the Plomosas Project. This work assesses operational and infrastructure synergies between San Marcial and the Plomosas Mine, evaluating how to optimize capital efficiency by sharing processing facilities, power infrastructure, and logistics networks. Independent engineering firm engagement is expected shortly, with a Preliminary Economic Assessment targeted for the second half of 2026. Fonseca highlighted, 

"Our integrated development plan is designed to optimize existing infrastructure and reduce capital intensity, ensuring we can advance efficiently without unnecessary dilution." 

GR Silver has also initiated discussions with potential offtake partners to explore funding options for bulk sample test mining and advancement activities.

Market Context: The Silver Rally & Industrial Demand

The broader metals market provides context for evaluating GR Silver's structure. Silver's historic performance reflects both safe-haven demand and concerns over potential Chinese export restrictions. China implemented new export restrictions on refined silver starting January 1, 2026, requiring companies to obtain special government licenses and meet stringent production capacity requirements. As China controls between 60% and 70% of the world's refined silver supply, these restrictions have contributed to global supply concerns and drove silver to its all-time high of $121.62 on January 29, 2026.

A weaker US dollar has supported higher metal prices by encouraging foreign and speculative buying, while global investor uncertainty related to U.S. policy shifts drives demand for real assets. Some analysts question whether fundamentals fully justify the rallies, particularly for base metals, suggesting speculative dynamics may be contributing to price strength. However, silver's position as both a monetary metal and industrial commodity provides multiple demand drivers.

The current price environment creates an opportunity for silver-focused companies to advance projects that might struggle to attract financing during weak commodity cycles. Fonseca noted, 

"In a strong silver market, the ability to efficiently add ounces is what drives real value for shareholders."

For Investors

• Monitor the company's Q2 2026 drilling results and consider adding exposure if high-grade intercepts extend mineralization beyond the 2023 resource envelope.
• Evaluate the updated mineral resource estimate in H2 2026 to determine if the resource base justifies current valuation multiples compared to peer silver explorers.
• Track bulk sampling results and pilot plant progress as key de-risking events that could support a re-rating from explorer to developer valuation.
• Consider GR Silver as a tactical play on silver price momentum, particularly if prices sustain above recent highs and validate the company's accelerated development timeline.
• Assess the Preliminary Economic Assessment upon release to evaluate project economics, capital requirements, and potential returns relative to silver price assumptions.
• Diversify into mid-cap silver developers if the silver rally extends beyond 2026, as companies transitioning from exploration to production typically capture premium valuations.

GR Silver's financial position represents a component of its investment structure. The company is fully funded, debt-free, and well-capitalized following the completion of over C$34 million in equity financing during the second half of 2025. This capital position enables management to execute the 2026 program without near-term dilution concerns. The financing also improved share liquidity and institutional ownership. The company's approach to resource expansion is built on cost efficiency. As Fonseca summarized, 

This efficiency is relevant when evaluating junior explorers, as companies that can add resources at lower costs require less capital to achieve growth.

Investors must consider the risks associated with junior exploration companies. Drilling results remain uncertain, permitting timelines can extend beyond expectations, and silver prices may not sustain current levels. The transition from exploration to development requires execution across multiple technical, operational, and financial dimensions. GR Silver's existing permits and infrastructure at Plomosas reduce some development risks, but the company must still demonstrate that bulk sampling validates metallurgical assumptions and that integrated project economics justify full-scale production investment.

TL;DR

GR Silver Mining is advancing a 2026 program at its 100%-owned Plomosas Project in Mexico, featuring 20,000 metres of drilling at San Marcial and bulk sample test mining at the permitted Plomosas Mine. With C$34 million in recent financing, the company is fully funded and debt-free, positioned to capitalize on silver's historic rally to an all-time high of $121.62 on January 29, 2026. Multiple catalysts planned for 2026 include an updated mineral resource estimate, preliminary economic assessment, and pilot plant advancement.

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