Santacruz Silver Completes Acquisition of Dedicated Bolivian Milling Facility to Support San Lucas and Own-Mine Growth

• Santacruz Silver Mining Ltd. has completed the acquisition of a 500-tonne-per-day (tpd) milling facility in Bolivia, made up of two 250 tpd circuits with selective flotation systems for lead and zinc concentrates carrying silver content
• The facility will process ore exclusively from San Lucas, the Company's wholly owned Bolivian ore sourcing and trading subsidiary
• Transitioning San Lucas ore to the new facility is expected to free up capacity at the Company's existing three mine processing facilities in Bolivia
• The facility is located approximately 5 kilometres from the Reserva mine, part of the Caballo Blanco group, and is targeted to reach commercial production by year-end 2026
• Total investment in the facility, covering acquisition, commissioning and related costs, is expected to be approximately US$14 million

Santacruz Silver Mining Ltd. (NASDAQ: SCZM) (TSXV: SCZ) is a Canada-based company engaged in the operation, acquisition, exploration and development of mineral properties across Latin America. In Bolivia, the Company operates the Bolivar, Porco and Caballo Blanco mining complexes, with Caballo Blanco comprising the Tres Amigos and Colquechaquita mines, and also holds the Reserva mine and the Soracaya exploration project. In Mexico, Santacruz operates the Zimapan mine. The Company's San Lucas subsidiary sources and processes third-party ore in Bolivia.

Acquisition Adds Dedicated Milling Capacity for San Lucas at a Total Investment of US$14 Million

Santacruz Silver has completed the purchase of a 500 tpd milling facility in Bolivia, consisting of two 250 tpd processing circuits. Each circuit uses selective flotation to recover lead and zinc concentrates with high-grade silver content. The facility will be dedicated to processing ore sourced through San Lucas, the Company's Bolivian ore sourcing and trading subsidiary.

The total investment in the facility is expected to be approximately US$14 million, covering the acquisition, commissioning, and all costs required to bring the facility to commercial production.

Of the US$9.2 million purchase price, Santacruz has paid US$4.6 million, with the remaining US$4.6 million due on November 8, 2026, one month after the facility is delivered, expected around October 8, 2026. A further US$4.8 million has been allocated to milling upgrades and working capital through commissioning and the achievement of commercial production.

Freed Capacity at Existing Mines Is Expected to Support Own-Mine Development

Ore from San Lucas and ore from Santacruz's own Bolivian mines have both been processed through the Company's existing three mine facilities. By transitioning San Lucas volumes to the newly acquired mill, Santacruz expects to free up processing capacity at those existing facilities.

According to the Company, this is expected to allow it to advance its mine development plans and increase production from its own Bolivian operations without internally competing for available processing capacity.

The acquired facility is located approximately 5 kilometres from the Reserva mine, part of the Caballo Blanco group, providing logistical and operational proximity to the Company's existing operations. 

Executive Chairman and CEO Arturo Préstamo said:

"This acquisition is a win-win for Santacruz's operating platform. The addition of 500 tpd of milling capacity gives San Lucas a clear path to continue increasing its volumes, while freeing up capacity at our existing milling facilities for ore from our own mines. This will allow our mining operations to advance their development and production growth plans without being constrained by milling capacity. This is exactly the type of operating leverage we look for at Santacruz-one investment that allows two parts of our business to grow at the same time."

Q4 2026 Commissioning Timeline Supports Increased Consolidated 2027 Production

The facility is expected to be commissioned during the fourth quarter of 2026, with commercial production targeted by year-end. Commissioning will include testing and optimisation of the milling and selective flotation circuits, followed by a ramp-up toward commercial production.

Santacruz expects the additional processing capacity, combined with ongoing mine development, operational optimisation initiatives and increased ore availability, to support continued production growth across its Bolivian platform, with increased consolidated production anticipated in 2027.

Executive Chairman and CEO Arturo Préstamo said:

"The new facility also creates a significant opportunity to accelerate growth across our Bolivian operations. We expect the additional processing capacity, together with ongoing mine development, operational optimization initiatives and increased ore availability, to support continued production growth across Santacruz's platform. As a result, we anticipate increased consolidated production in 2027, while San Lucas is expected to further expand its standalone production, demonstrating the scalability and operating leverage of the Company's vertically integrated Bolivian platform. Importantly, this acquisition is consistent with Santacruz's strategy of leveraging our existing infrastructure, expanding processing capacity and maximizing production growth while maintaining a disciplined approach to capital allocation."

Milestones and Next Steps

Delivery of the milling facility is expected around October 8, 2026, with the final payment of US$4.6 million due on November 8, 2026. Commissioning is targeted for the fourth quarter of 2026, with commercial production expected by year-end 2026 and increased consolidated production anticipated across the Company's Bolivian platform in 2027.

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