Santacruz Silver Reports 3.4 Million Silver Equivalent Ounces in Q3 2025

• Q3 2025 production totalled 3,424,817 silver equivalent ounces, down 3% from Q2 2025 and 15% from Q3 2024
• Bolivar mine silver equivalent production declined 30% quarter-over-quarter due to restricted access to Pomabamba and Nané high-grade zones following May water inflow event
• Fourth pumping line commissioned in September 2025, increasing capacity to 300 litres per second; fifth line installation underway targeting 340 litres per second by year-end
• Caballo Blanco increased silver equivalent production 3% quarter-over-quarter to 707,465 ounces; San Lucas up 5% to 986,403 ounces
• High-grade production at Bolivar expected to resume February 2026, with Pomabamba South zone containing reserves averaging 309 grams per tonne silver

Santacruz Silver Mining Ltd. (TSXV:SCZ) is a Latin American mining company that operates five mining complexes in Bolivia and Mexico. The company's Bolivian assets include the Bolivar mine, Porco mine, and Caballo Blanco complex (comprising Tres Amigos and Colquechaquita mines), as well as the San Lucas ore sourcing business with the Reserva mine. The Zimapan mine is located in Mexico. The company also holds the Soracaya exploration project in Bolivia. Santacruz produces silver, zinc, lead, and copper from polymetallic deposits.

Q3 2025 Consolidated Production Results and Performance Metrics

Consolidated production for Q3 2025 reached 3,424,817 silver equivalent ounces, a 3% decrease from Q2 2025 and 15% below Q3 2024 levels. The company processed 486,585 tonnes of material across all operations, up 1% from the previous quarter. Year-to-date production stands at 10,660,000 silver equivalent ounces, down 12% compared to the same period in 2024.

Metal production included 1,241,929 ounces of silver (down 13% quarter-over-quarter), 21,581 tonnes of zinc (up 2%), 2,603 tonnes of lead (down 6%), and 331 tonnes of copper (up 45%). The quarterly decrease in silver production was primarily driven by the Bolivar mine, where access to high-grade zones remained restricted following the May 2025 water inflow event. Zinc production increased on contributions from Caballo Blanco and San Lucas operations.

Underground development across all operations totalled 12,634 metres during the quarter. The company completed drilling above Level 340 at Bolivar in October 2025 to expand resources toward the southern extension of Pomabamba. Silver equivalent calculations used prices of $31.41 per ounce for silver, $2,775.53 per tonne for zinc, $2,085.90 per tonne for lead, and $9,762.69 per tonne for copper.

Bolivar Mine Water Inflow Impact and Recovery Efforts

The water inflow event at Bolivar in mid-May 2025 continued to affect operations throughout Q3, with silver equivalent production declining 30% to 420,612 ounces compared to Q2 2025. Silver production decreased 57% quarter-over-quarter to 132,146 ounces, while silver grades dropped from 190 grams per tonne to 89 grams per tonne. Year-over-year, silver production was down 73% compared to Q3 2024.

The company commissioned the fourth pumping line in September 2025, increasing total pumping capacity to approximately 300 litres per second. Installation of a fifth submersible pumping line began in mid-October 2025, with completion targeted by year-end to bring combined capacity to 340 litres per second.

Executive Chairman and CEO Arturo Préstamo stated:

"We have been actively working on strengthening the pumping system at Bolivar, with the fourth line commissioned in September and the installation of a fifth submersible line underway, which together will increase total pumping capacity to 340 liters per second."

Production from the Pomabamba and Nané zones is expected to resume in February 2026. The Pomabamba South vein contains reserves with silver grades averaging 309 grams per tonne. The installation schedule for the fifth pumping line experienced delays due to logistics related to pump delivery. Dewatering and rehabilitation work advanced during the quarter to enable gradual recovery of the affected zones.

Operational Performance Across Mine Portfolio Including Porco, Caballo Blanco, San Lucas, and Zimapan

Porco mine produced 318,694 silver equivalent ounces in Q3 2025, down 12% from the previous quarter. The operation processed 49,161 tonnes with zinc production of 2,488 tonnes, an 11% quarterly decrease attributed to a 10% decline in zinc grades. Zinc recoveries remained at 93%. Silver production decreased in line with the mine plan, which prioritised zinc-dominant zones. On a year-over-year basis, zinc production declined 5% while silver output fell 47%.

Caballo Blanco recorded silver equivalent production of 707,465 ounces, up 3% from Q2 2025. The operation processed 62,221 tonnes, an 8% quarterly increase. Silver production remained flat at 294,524 ounces. Year-over-year, silver equivalent production increased 9% and silver output rose 18%, supported by silver grade improvement of 8% and recovery gains of 3%. Zinc production increased 4% quarter-over-quarter to 4,131 tonnes, while lead production rose 21% to 722 tonnes.

San Lucas processed 100,550 tonnes and produced 986,403 silver equivalent ounces, increases of 6% and 5% respectively from Q2 2025. Silver production rose 2% to 326,873 ounces. Zinc production increased 6% to 7,032 tonnes. Year-over-year, silver equivalent production declined 6%, with silver output down 8% and zinc down 7%. Zimapan mine in Mexico produced 991,643 silver equivalent ounces, up 3% quarter-over-quarter. The operation processed 222,629 tonnes with silver production of 396,385 ounces, essentially flat from the previous quarter. Zinc production increased 5% to 4,744 tonnes, while copper production rose 45% to 331 tonnes on higher grades and improved recoveries.

Looking Ahead

The company continues dewatering efforts at Bolivar with the fifth pumping line installation expected to complete by year-end 2025. Access to the high-grade Pomabamba and Nané zones is scheduled to resume in February 2026, with production ramping up through the remainder of the year. Operations at Caballo Blanco, San Lucas, Porco, and Zimapan continue according to mine plans. The company's Q3 results reflect the ongoing transition period as Bolivar recovery work progresses toward restoration of full mining access.

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