Santacruz Silver Completes Second Tranche of BOB 70 Million Promissory Note Offering

• Completed second BOB 70 million promissory note offering on 8 August 2025 
• Total funds raised reach BOB 140 million across two tranches, fulfilling authorized programme amount 
• Notes carry 7.00% interest rate with June 2026 maturity date and are unsecured 
• Offering received demand from the Bolivian investment community for San Lucas ore sourcing business 
• Funding diversification approach supports treasury management and capital structure requirements

Santacruz Silver Mining (TSX.V:SCZ) is a Latin American-focused mining company engaged in the operation, acquisition, exploration, and development of mineral properties. The company operates multiple mining complexes in Bolivia including Bolivar, Porco, and Caballo Blanco, which encompasses the Tres Amigos and Colquechaquita mines.

Bolivian operations include the Reserva mine, which supplies ore to the San Lucas sourcing and trading business, and the Soracaya exploration project. In Mexico, Santacruz operates the Zimapán mine, providing geographic diversification across its operational portfolio.

Second Tranche Completed - Total of BOB 140 Million Raised

The completion of the second BOB 70 million tranche on 8 August 2025 brings total funds raised under the San Lucas Promissory Notes Issuance Program to BOB 140 million, representing the full authorized programme amount. The offering was executed through the Bolivian Stock Market under the designation "Pagarés Bursátiles San Lucas – Emisión 2."

The first tranche of BOB 70 million was completed in February 2025, as detailed in the company's 27 February 2025 news release. Both tranches were issued by San Lucas S.A., Santacruz's wholly owned Bolivian subsidiary that operates the ore sourcing and trading business.

The funds provide additional working capital for the company's Bolivian operations and support ongoing operational requirements across its mining complexes and exploration activities in the region.

Local Market Support and Funding Strategy

Executive Chairman and CEO Arturo Préstamo stated:

"With the majority of our operations based in Bolivia, the Offering reinforces our deep commitment to the country, where we continue to invest, expand and contribute meaningfully to the growth of the Bolivian mining sector, its communities and broader economic development."

The local funding approach aligns the company's financing sources with its operational base in Bolivia, where the majority of its mining activities are conducted. The local funding approach uses the same currency as the company's operational expenses in Bolivia.

Préstamo noted that the issuance "marks a key step in our strategy to diversify funding sources in line with our efficient treasury management approach, which further strengthens Santacruz's capital structure, supporting ongoing efforts to deliver long-term value for our shareholders." The programme establishes San Lucas S.A. as an issuer within the Bolivian capital markets.

Looking Forward

The completion of the BOB 140 million promissory note programme provides Santacruz with additional capital for its Bolivian operations and establishes access to local funding markets. The company will deploy the raised capital across its operational requirements, exploration activities, and investment needs within its Bolivian mining portfolio.

The programme completion fulfills the total authorized amount under the San Lucas Promissory Notes Issuance Program and provides a framework for potential future local market funding as operational requirements develop.

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