Magna Mining Secures C$140 Million Investment From Peruvian Mining Group Alpayana

• Magna Mining Inc. has entered a non-brokered private placement with Alpayana S.A.C. for gross proceeds of approximately C$140,000,000.
• Alpayana will purchase 62,222,222 common shares at C$2.25 per share, resulting in an approximate 19.9% equity stake in Magna once the deal closes.
• Alpayana is a private Peruvian mining group with more than four decades of continuous underground mining operations across Peru and Mexico.
• Net proceeds are earmarked for development of Magna's past-producing Levack and Crean Hill projects, plus general corporate and working capital purposes.
• The placement remains subject to Toronto Stock Exchange approval and other customary closing conditions, with completion expected as soon as practicable.

Magna Mining Inc. (TSX: NICU) is a Canada-based mining company operating in the Sudbury district of Ontario. The company's primary asset is the McCreedy West Mine, currently in production, supported by a portfolio of past-producing and development-stage properties, including the Levack, Crean Hill, Podolsky, and Shakespeare projects.

C$140 Million Placement Gives Alpayana a 19.9% Stake

Magna Mining announced on July 6, 2026 that it has agreed to a non-brokered private placement with Alpayana S.A.C., a private Peruvian mining group. Under the terms of the deal, Alpayana will acquire 62,222,222 common shares of Magna at a price of C$2.25 per share, for total gross proceeds of approximately C$140 million.

Once the transaction closes, Alpayana is expected to hold approximately 19.9% of Magna's issued and outstanding shares. The offering requires approval from the Toronto Stock Exchange along with other customary closing conditions, including execution of a subscription agreement between the two companies. Shares issued to Alpayana will be subject to a statutory hold period in Canada expiring four months and one day after closing.

Canaccord Genuity Corp. is acting as financial advisor to Magna on the transaction, with Desjardins Capital Markets serving as strategic advisor. Magna will also pay finder's fees on the gross proceeds of the offering in accordance with applicable securities laws and TSX policies.

Alpayana Brings Latin American Underground Mining Experience

Alpayana is a private mining group with more than four decades of continuous operations in Peru and Mexico, where it currently operates multiple mines. The company combines operational expertise with disciplined project development and describes its approach as guided by sustainable and responsible mining practices.

Through its mining infrastructure at the Americana and Yauliyacu mines, Alpayana provides clean water to more than 2.5 million people. Magna's management has noted that Alpayana's operating experience in Peru and Mexico complements Magna's production base, advanced-stage projects, and knowledge of the Sudbury Basin.

Magna Mining Chief Executive Officer Jason Jessup said:

"We are extremely pleased with this proposed strategic investment from Alpayana and welcome them as a major shareholder of Magna. Alpayana is a Peruvian mining company with six operating underground mines in Latin America. Their operating experience in Peru and Mexico dovetails well with our growing production, advanced stage projects, extensive property portfolio and deep knowledge of the Sudbury Basin in northeastern Ontario. Most importantly, the values of our two companies are very closely aligned. This financing will allow us to simultaneously pursue multiple growth opportunities and accelerate the advancement of our past-producing Levack and Crean Hill projects. We look forward to working with the team from Alpayana in order to learn from each other and explore additional opportunities for growth in Sudbury."

Proceeds Set to Fund Levack and Crean Hill Development

The net proceeds from the placement will fund advancement of Magna's development activities at its mineral projects in the Sudbury region of Ontario, as well as general corporate and working capital purposes. Levack and Crean Hill, both past-producing mines within Magna's portfolio, are named directly in the release as projects the financing is intended to advance.

Alpayana Chairman Alejandro Gubbins said:

"This investment reflects Alpayana's confidence in Magna's team and in the exceptional geological endowment of the Sudbury Basin. As a private group with four decades of continuous operations in Latin America, we are proud to extend our long-term, responsible approach to mining into one of the world's most established districts, and to support Magna as it advances its growth pipeline in the region."

The transaction was arranged with Canaccord Genuity Corp. as financial advisor and Desjardins Capital Markets as strategic advisor to Magna.

Milestones and Next Steps

Completion of the placement depends on Toronto Stock Exchange approval and execution of a formal subscription agreement between Magna and Alpayana. The company expects closing as soon as practicable, subject to receipt of all required regulatory approvals. Once completed, Alpayana will hold approximately 19.9% of Magna's outstanding shares, and net proceeds will be directed toward advancing the Levack and Crean Hill projects along with general corporate purposes.

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