Vizsla Silver Commences Fully Funded Test Mining & Bulk Sample Program at Flagship Panuco Project

• Vizsla Silver has commenced a fully funded and permitted test mining and 10,000 tonne bulk sample program at its Panuco silver-gold project in Mexico
• The program will reconcile geotechnical conditions, validate resource models, and build operational experience for the Panuco team
• Surface infrastructure, including roads, offices, workshops and stockpiles, is being constructed to support the program
• In addition to test mining, Vizsla is continuing exploration drilling and geophysical surveys to discover new high-grade mineralization
• An updated resource estimate is expected in Q1 2025 followed by a Feasibility Study in H2 2025, which will move Panuco closer to a construction decision

About Vizsla Silver

Vizsla Silver is a Canadian mining company focused on advancing its 100%-owned Panuco silver-gold project in Sinaloa, Mexico. The company's vision is to become a leading global silver producer by utilizing a dual-track approach at Panuco, combining mine development with ongoing exploration to expand the resource base and make new discoveries.

Commenting on the company's strategy, President and CEO Michael Konnert stated:

"Vizsla Silver aims to become the world's leading silver company by implementing a dual track development approach at Panuco, advancing mine development, while continuing district scale exploration through low-cost means."

This dual-track approach provides a clear pathway to production while preserving the exceptional exploration upside at Panuco. By investing in both mine development and exploration in tandem, Vizsla can maximize the value of the project for shareholders.

Vizsla completed the acquisition of Panuco in early 2021 and has aggressively explored and advanced the project since then. The project has an extensive history of past production yet remains vastly underexplored in the modern era. Panuco currently hosts an indicated resource of 155.8 million silver equivalent (AgEq) ounces and an inferred resource of 169.6 million AgEq ounces across multiple vein structures.

A Preliminary Economic Assessment (PEA) completed in July 2024 demonstrated robust project economics, including average annual production of 15.2 million AgEq ounces over an initial 10.6 year mine life. The PEA delivered an after-tax NPV(5%) of $1.1 billion, IRR of 86%, and payback period of only 9 months at conservative metal price assumptions. With these strong fundamentals and significant exploration upside remaining, Panuco is well-positioned to be an attractive development project for silver.

Fully Funded Test Mining & Bulk Sample Program Underway

On December 11, 2024, Vizsla announced that it has commenced a major de-risking initiative at Panuco with the start of a fully funded and permitted test mining and bulk sample program. This program represents an important milestone as Vizsla advances Panuco from an exploration and development story towards an operating mine.The key objectives of the program are to:

• Reconcile actual geotechnical conditions in the Copala zone with the current geotechnical model, in preparation for full-scale development. This will ensure underground designs are optimized for the rock conditions.
• Validate the resource block models by comparing mined grades and tonnages against the estimates. Detailed data will be collected to enhance the accuracy and predictability of the models.
• Build operational experience for the Panuco team as they transition to an operating mindset. This will be invaluable for the successful development and ramp-up to commercial production.

Approximately 1,071 meters of underground ramp and lateral development is planned to access the Copala structure on the 460-meter level. From here, roughly 10,000 tonnes of high-grade material will be extracted through ore development tunnels. This material will be stockpiled on surface for potential use in future metallurgical testing.

To support the underground activities, Vizsla has begun constructing key surface infrastructure. This includes access roads, office and workshop facilities, and properly engineered stockpile locations for ore, waste rock and topsoil. Construction is being managed by an experienced Mexican earthworks contractor that Vizsla has an existing relationship with from previous civil works at Panuco.

Mining will be conducted by a specialized underground contractor with an excellent track record in Mexico. The fully-equipped mining team is currently mobilizing to site to set up operations. Mining will begin in the coming weeks, with the program expected to run for 6-8 months.The comprehensive dataset generated from this test mining program will form a crucial input to the Feasibility Study that is planned for completion in the second half of 2025. The Feasibility Study is a foundational technical and economic assessment that will support a future construction decision at Panuco.

District-Scale Exploration Continues

Concurrent with advancing the test mining program, Vizsla is continuing its aggressive exploration efforts across the Panuco district. The immediate focus is on the underexplored eastern portion of the project, outside of the initial development areas contemplated in the 2024 PEA.

Two drill rigs are currently turning as part of a fully-funded 10,000 meter discovery-based drill campaign. The main objective is to locate and define new high-grade mineralized centers that have potential to drive resource growth. Any discoveries made could be incorporated into an expanded mine plan that enhances the already robust PEA economics.

As a second exploration initiative, Vizsla has engaged a geophysical contractor to conduct ground electromagnetic (EM) surveys on six prospective areas of the Panuco district. EM methods are highly effective at directly detecting massive sulfide mineralization, which is a known style of high-grade mineralization at Panuco. Integrating the geophysical data with Vizsla's extensive geological mapping and sampling databases will generate high-quality drill targets for follow-up.

Updated Resource & Feasibility Study on the Horizon

Looking ahead to early 2025, Vizsla is planning to publish an updated mineral resource estimate that incorporates all the successful exploration drilling from 2022-2024. This will be a major milestone that crystalizes the full extent of the mineralized vein systems defined so far.

The updated resource will feed into a Feasibility Study in the second half of 2025. This is essentially a larger and more detailed version of the PEA. It will include the new resource, optimized mine designs, additional metallurgical test work, and refined cost estimates. The Feasibility Study will be the definitive economic assessment of Panuco that allows Vizsla to make a formal production decision.

The Investment Thesis for Vizsla Silver

Vizsla Silver presents a compelling opportunity for investors to gain leveraged exposure to rising silver prices through a high-quality development project with exceptional exploration upside. The key highlights of the investment thesis include:

• Robust project economics and scale as demonstrated by the 2024 PEA, with additional optimization and growth potential as Panuco advances
• High-grade silver and gold mineralization in a historic mining district that is underexplored with modern methods, providing strong potential for new discoveries
• Favorable mining jurisdiction in Mexico with a streamlined permitting process and access to skilled labor and contractors
• Fully-funded to execute on its dual-track business plan, with major de-risking and value creation milestones approaching
• Well-capitalized company with a tight capital structure and strong institutional support
• Proven management team and Board with a track record of exploration success and project development expertise

With the commencement of the test mining and bulk sample program, Vizsla has entered an exciting phase as it takes a major step forward in de-risking Panuco. The program will provide valuable geotechnical and operational data while allowing for detailed reconciliation of the resource model. This significantly enhances the project on the path to production.

In parallel, Vizsla continues to systematically explore the Panuco district with the drill bit. The ongoing 10,000 meter drill campaign and geophysical survey work has potential to deliver new high-grade discoveries in the near-term. Any exploration success could drive further resource growth and mine life extension.

Altogether, Vizsla is well positioned to unlock the full potential of the Panuco district and in doing so, create significant value for shareholders. The next 12 months will be transformative as test mining progresses, an updated resource estimate is published, and a Feasibility Study is advanced towards completion. Vizsla is an emerging silver developer to watch closely.

Key Takeaways

The key implications and takeaways from Vizsla Silver's latest news release are:

• The fully funded and permitted test mining and bulk sample program at Panuco is a major de-risking milestone that will provide key technical and economic data as the project advances towards production
• Construction of supporting surface infrastructure and mobilization of an experienced mining contractor is underway, with the program expected to run for 6-8 months
• Ongoing exploration drilling and geophysical surveys in the underexplored eastern portion of Panuco has potential to deliver new high-grade discoveries that drive resource growth
• An updated resource estimate in Q1 2025 and Feasibility Study in H2 2025 are major upcoming catalysts that will showcase the full extent of the geological endowment and robust economics of Panuco
• Vizsla Silver is well-capitalized and fully-funded to execute on its dual-track business plan of resource expansion and mine development, with multiple opportunities for value creation on the horizon