Santacruz Silver Quarterly Report - 30 September 2025

• Completed final payment to Glencore, eliminating base purchase price obligation with working capital of $69.20 million at quarter end
• Revenue of $79.99 million with gross profit of $20.17 million, up 28% year-over-year
• Adjusted EBITDA of $19.51 million, up 67% year-over-year, with cash and marketable securities of $59.23 million
• Water inflow at Bolívar mine in May 2025 affected Pomabamba and Nané veins, with recovery plan targeting Q4 2026
• Silver equivalent production of 3.42 million ounces maintained through Caballo Blanco, Zimapán and San Lucas operations

Santacruz Silver Mining Ltd. (TSX-V:SCZ) is a Canadian-based company focused on the operation, acquisition, exploration and development of mineral properties in Latin America. The company's Bolivian operations include the Bolívar, Porco and Caballo Blanco mining complexes, the San Lucas ore sourcing business, the Reserva mine, and the Soracaya exploration project. In Mexico, the company operates the Zimapán mine.

Financial Performance and Glencore Debt Payoff Completion

The company completed its final instalment payment to Glencore during the quarter for the acquisition of Bolivian assets, eliminating the base purchase price obligation. Working capital at quarter end was $69.20 million, up 186% from the prior year period. Cash and marketable securities reached $59.23 million, representing a 225% increase year-over-year.

Revenue for the quarter was $79.99 million, a 2% increase from the prior year. Gross profit rose to $20.17 million, up 28% year-over-year, whilst adjusted EBITDA reached $19.51 million, representing a 67% increase. Net income was $16.34 million, down 7% from the prior year quarter.

CEO Arturo Préstamo stated:

"We paid off the final instalment payment to Glencore for the acquisition of our Bolivian assets, extinguishing the base purchase price obligation. This eliminated a significant liability and materially strengthened our balance sheet. Even after completing this payoff, we closed the quarter with $69.20 million in working capital."

Bolívar Mine Flooding Impact and Remediation Progress

A water inflow event at the Bolívar mine in May 2025 affected two production veins, Pomabamba and Nané, restricting access to high-grade zones. Silver production declined 73% year-over-year and 57% quarter-over-quarter. Silver head grades at Bolívar decreased 53% from the previous quarter.

The company implemented remediation activities including dewatering operations. A fourth pumping line was commissioned in September, with a fifth submersible line initiated during the quarter. According to the company's restoration plan, progressive access and production from Pomabamba and Nané are expected to resume beginning in February 2026, with volumes increasing throughout the year.

Full recovery at Bolívar is anticipated by the fourth quarter of 2026. During the affected period, production from Caballo Blanco, San Lucas and Zimapán provided operational continuity. Caballo Blanco increased milled tonnes and silver equivalent production, whilst Zimapán delivered gains in output driven by stronger zinc grades.

Cost Performance and Currency Impact on Operations

Consolidated all-in sustaining costs rose to $35.62 per silver equivalent ounce from $24.27 in Q3 2024. Cash costs increased to $28.62 per ounce, up 28% year-over-year. Bolívar's all-in sustaining costs reached $50.89 per ounce due to ongoing remediation activities and reduced production from high-grade zones.

The Bolivian boliviano appreciated 31% during the quarter, increasing costs across Bolivian operations when converted to US dollars.

Mr. Préstamo stated:

"The appreciation of the Bolivian boliviano, supported by positive market sentiment toward the newly elected government, contributed to increased costs across our Bolivian operations."

At San Lucas, higher silver and zinc prices increased ore purchase costs under the operation's margin-based sourcing model. At Zimapán, cash costs rose 19% and all-in sustaining costs increased 27% year-over-year, reflecting mine development at level 960 and plant upgrades intended to improve recoveries.

Looking Ahead

The company completed the Glencore debt obligation during the quarter and maintains working capital of $69.20 million. Restoration activities at Bolívar continue according to schedule, with initial production from affected zones expected to resume in February 2026 and full recovery targeted for Q4 2026. Operations at Caballo Blanco, Zimapán and San Lucas continue. Management stated the company remains focused on operational efficiency and maintaining balance sheet strength.

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