Santacruz Silver Reports Q1 2026 Silver Production of 1.34 Million Ounces, with Bolivar Up 28% Quarter-Over-Quarter

• Total Q1 2026 silver production of 1,341,499 ounces was broadly flat versus Q4 2025's 1,343,607 ounces, while zinc output reached 21,640 tonnes across all operations.
• Bolivar Mine silver production increased 28% quarter-over-quarter to 259,635 ounces, despite Q1 carrying fewer effective working days due to Bolivia's Carnival holiday period.
• San Lucas grew silver production 16% and zinc production 19% year-over-year, contributing to the broader Bolivian production portfolio.
• Santacruz introduced an updated production disclosure methodology starting Q1 2026, using actual quarterly LME prices in place of once-a-year budgeted prices.
• Caballo Blanco produced 306,888 ounces of silver in Q1 2026, up 6% quarter-over-quarter, with zinc up 12% and lead up 58% year-over-year.

Santacruz Silver Mining Ltd. (NASDAQ: SCZM / TSX.V: SCZ) is a Vancouver-based silver and base metals producer engaged in the operation, acquisition, exploration, and development of mineral properties across Latin America. In Bolivia, the company operates three mining complexes: Bolivar, Porco, and Caballo Blanco, which comprises the Tres Amigos and Colquechaquita mines. The company also runs San Lucas, an ore sourcing and trading business in Bolivia, and oversees the Soracaya exploration project. In Mexico, the company operates the Zimapan mine in the state of Hidalgo.

Q1 2026 Production Results and Bolivar Mine Recovery

Santacruz's consolidated silver production in Q1 2026 reached 1,341,499 ounces, nearly unchanged from 1,343,607 ounces in Q4 2025. Zinc output was 21,640 tonnes, down 9% quarter-over-quarter, while copper rose 7% to 308 tonnes. Compared to Q1 2025, silver production was 16% lower, though zinc grew 4% and copper improved 10%.

At the Bolivar Mine, silver output rose 28% quarter-over-quarter to 259,635 ounces from 202,193 ounces in Q4 2025, supported by higher silver grades as recovery work continued in areas affected by a localised flooding event in May 2025. Zinc production decreased 8% to 3,656 tonnes, reflecting lower zinc grades, while lead increased modestly to 198 tonnes. Q1 typically carries fewer effective working days than Q4 in Bolivia due to the Carnival holiday period.

CEO Arturo Préstamo commented:

"Q1 2026 was marked by strong operational progress at our Bolivar mine, where silver production increased 28% quarter-over-quarter to 259,635 ounces, driven by ongoing recovery efforts made in the areas affected by the localized flooding event that occurred in May 2025. Looking at our other assets in Bolivia, Caballo Blanco remained a steady contributor, while San Lucas continued to enhance plant utilization and operational flexibility. In Mexico, Zimapan consistently contributed to our consolidated production performance. It's important to note that Bolivar's production increased in Q1 despite fewer operating days."

Enhanced Production Disclosure Methodology and Transparency

Starting Q1 2026, Santacruz reports actual output for each metal as the primary measure, with silver equivalent (AgEq) ounces and zinc equivalent (ZnEq) tonnes presented as supplementary reference figures only. These equivalent metrics express multi-metal output in a single unit using one metal as a common denominator, but as the company noted, they can become less representative in periods when one metal's price moves significantly relative to others.

The company also changed how it calculates those equivalent figures. Previously, budgeted prices set once a year were applied; from Q1 2026 onwards, calculations use actual average quarterly prices as quoted on the London Metal Exchange (LME), the globally recognised benchmark for metals pricing. Previously reported equivalent figures have also been restated using the corresponding quarterly average LME prices.

CEO Arturo Préstamo noted:

"We believe this new approach provides investors with a clearer, transparent, and more balanced view of operating performance across our diversified production portfolio."

The updated framework also refines how San Lucas is presented within the company's production disclosures, as its ore-sourcing and processing model differs from a conventional mining operation.

Diversified Operations Performance Across Bolivia and Mexico

Caballo Blanco, comprising the Colquechaquita and Tres Amigos mines, produced 306,888 ounces of silver in Q1 2026, up 6% from Q4 2025. Higher silver grades and modestly improved recoveries (the percentage of metal successfully extracted during processing) supported the quarter's output. On a year-over-year basis, zinc grew 12% to 3,967 tonnes and lead rose 58% to 767 tonnes, while silver was broadly flat against Q1 2025's 313,266 ounces.

San Lucas, which sources mineralised material from third-party suppliers and processes it through the company's existing plant infrastructure in Bolivia, produced 341,405 ounces of silver and 7,144 tonnes of zinc in Q1 2026. Year-over-year, silver production grew 16% and zinc grew 19%. The business supports higher plant utilisation and fixed-cost absorption across the Bolivian operations, with its margin derived from the difference between ore purchase costs and the value of the processed metals.

In Mexico, the Zimapan mine contributed 362,863 ounces of silver, 4,040 tonnes of zinc, 1,005 tonnes of lead, and 308 tonnes of copper in Q1 2026. Output was lower compared to both Q4 2025 and Q1 2025, primarily due to limited access to higher-grade mining areas following a contractor delay in completing a ventilation shaft upgrade, and intermittent power supply interruptions from Mexico's national electricity provider. Copper production increased 7% quarter-over-quarter and 10% year-over-year. Zimapan remains a contributor to consolidated output and is managed with a focus on recoveries and concentrate quality (the purity and commercial grade of processed metal output).

Outlook

Q1 2026 marks a quarter of continued recovery at Bolivar, where silver production grew quarter-over-quarter through a period with fewer effective working days, and the company's updated production disclosure framework took effect with this reporting period. At Zimapan, the completion of a pending ventilation shaft upgrade and the resolution of power supply interruptions remain the key operational items to watch in the near term. Across Bolivia and Mexico, Santacruz's five producing operations delivered stable consolidated silver output while recovery work at Bolivar continued to advance.

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