Reyna Silver Advances High-Potential CRD Projects in Nevada and Mexico

• Reyna Silver is a silver exploration company focused on district-scale projects in Nevada and Mexico
• Closed a $4.6M CAD financing to primarily fund drilling at the Griffin project in Nevada
• Griffin is an advanced Carbonate Replacement Deposits (CRD) silver project with 12,000m of historic drilling, geophysics, and sampling
• Sentiment is cautiously optimistic on silver; supply shortage due to lack of new discoveries
• Uncertainty around Mexican election and mining law changes, but Reyna's projects largely insulated

About Reyna Silver

Reyna Silver Corp (TSXV:RSLV) is a silver-focused exploration company advancing district-scale projects in the prolific jurisdictions of Nevada, USA and Mexico. Led by CEO Jorge Ramiro Monroy and noted geologist Dr. Peter Megaw, the company's experienced technical team specializes in high-grade Carbonate Replacement Deposits (CRDs). With a tight share structure and strong shareholder support, Reyna recently closed a $4.6 million CAD financing to aggressively explore its project portfolio, headlined by drilling at the advanced-stage Griffin CRD project in Nevada.

Interview with Chief Executive Officer, Jorge Ramiro Monroy

Griffin Project: Drilling a High-Grade CRD in Nevada

The financing proceeds will be primarily directed to a substantial drill program at the 100%-owned Griffin silver-zinc-lead project in Nevada. Acquired in November 2022, Griffin hosts significant CRD mineralization within a large, underexplored land package.

The project boasts an extensive historical database including 12,000 meters of drilling, 4,000 surface samples, and multiple geophysical surveys. However, this data was generated by previous operators focused on Carlin-type gold mineralization. Reyna's technical team recognized the potential for a significant CRD system and will be the first to systematically explore Griffin from this perspective.

"Griffin is by far the project that's more advanced in terms of the historic information," explained Reyna Silver CEO Jorge Ramiro Monroy in a recent interview. "The core that we're going to look at has pretty much never been looked at with the eyes of CRDs. And you know, it has very specific characteristics."

The initial focus will be on relogging the historic drill core and integrating the extensive data to refine drill targets in areas of known mineralization. Permitting is underway for a drill program to commence this field season. Reyna expects to rapidly advance the project towards a maiden resource estimate.

Nevada is experiencing increased staking and M&A activity for CRD projects, highlighted by major miner Hecla's recent acquisition of Alexco Resources for its Keno Hill silver project. Reyna's Griffin project represents one of the largest and most advanced CRD projects in this emerging district.

Silver Market Outlook

The silver market has faced headwinds over the past two years despite record inflation and global uncertainty - conditions that are typically positive for precious metals. However, the sentiment among experienced investors appears to be cautiously optimistic.

"The investor community in general is definitely interested and the appetite is there, but I think there's also something to be said that investors don't have a lot of liquidity," noted Monroy. "From fund managers, people have been facing redemptions, and then from high net worth individuals, a lot of them have given us feedback saying, 'Look, I can go and buy a bond that pays 12-13-14%.'"

Despite the challenging market conditions, many silver companies are struggling to replenish their project pipelines. The last major silver discoveries were made over a decade ago, and the lack of new high-quality projects is expected to lead to a significant supply shortage in the coming years.

"When you're look at the uses for silver, that's all growing," explained Monroy. "But on a more fundamental level, on the mining side, there's very few projects. If you look at the last four or five years, the big silver companies - Pan American Silver, First Majestic - they didn't go and buy silver projects. They used their silver premium, looked around and said, 'There's no silver projects.' So there is certainly a need to make new silver discoveries."

This dynamic is expected to be very positive for Reyna Silver and other companies that can make significant new high-grade silver discoveries in attractive mining jurisdictions.

Mexican Project Portfolio

In addition to its Nevada projects, Reyna Silver has a portfolio of earlier-stage silver projects in Mexico. These projects, which include Guigui and Batopilas, were acquired from MAG Silver in 2019 as part of a deal that saw Dr. Peter Megaw join Reyna as Chief Technical Advisor.

Mexico has a long mining history and is considered a top jurisdiction for silver production globally. However, recent uncertainty surrounding proposed changes to the mining law has impacted foreign investment and led some companies to focus exploration efforts elsewhere.

The Mexican government under President Andrés Manuel López Obrador has taken a more nationalistic approach to the mining sector and introduced a number of proposed reforms. These include increased consultation with local communities, shorter license terms, and most recently a proposed ban on open pit mining. However, according to Monroy, the potential impacts to Reyna Silver appear to be minimal.

"95% of the silver projects in Mexico are underground, so I don't think we'll see too big of a negative impact," he explained. "If they really ban open pit mining, that's very significant. It's a big problem. I don't have a good sense of whether it's political points or if they genuinely want to ban open pit mining. That would be the one thing to watch for."

Mexico is set to have a presidential election in July, with the new government to be sworn in this December. Reyna Silver, like many other foreign operators, is taking a cautious approach to the uncertainty. The company is maintaining its property portfolio and continuing low-cost exploration activities but is electing not to drill until the political situation is resolved.

"Just from a business point of view, the election is in July, but the Mexican election has this peculiarity that they get elected in July to start in December," said Monroy. "So just from a business point of view, it makes sense to just wait and see what the panorama is going to be like."

Despite the near-term uncertainty, Reyna remains optimistic about the long-term potential of its Mexican portfolio. All of the company's key projects are road accessible and located in historic mining districts with significant upside potential. With a number of major silver miners looking to make acquisitions, Reyna is well-positioned to realize value from these assets through either a joint venture or outright sale.

Conclusion

With a strong treasury, experienced management team, and portfolio of high-quality exploration projects, Reyna Silver Corp represents a compelling opportunity for silver investors. The company's near-term focus on drilling the advanced-stage Griffin CRD project in Nevada provides the potential for a significant new discovery in a world-class jurisdiction. Meanwhile, the earlier-stage Mexican portfolio offers investors additional upside optionality once the near-term political uncertainty is resolved. With the silver market facing a significant supply shortage due to a lack of new discoveries globally, Reyna Silver is well-positioned for success.

The Investment Thesis for Reyna Silver

• High-grade silver Carbonate Replacement Deposits (CRD) projects in Nevada and Mexico provide discovery potential and optionality
• Near-term drilling at advanced Griffin project funded by recent $4.6M financing
• Griffin hosts 12,000m of historic drilling to be relogged and used to refine priority targets
• Experienced management team with history of CRD discoveries; Dr. Peter Megaw as technical advisor
• Lack of new silver discoveries globally expected to lead to supply shortage and higher prices
• Near-term caution on Mexican projects due to political uncertainty, but significant long-term upside
• Tight share structure, strong investor support, and attractive valuation compared to peers