Vizsla Silver Expands Mexican Silver Footprint with Santa Fe Acquisition

• Vizsla Silver has announced an agreement to acquire the Santa Fe Project, a 12,229-hectare property including both production and exploration concessions located along the Panuco-San Dimas corridor in western Mexico.
• The acquisition includes a fully permitted 350 tonne-per-day flotation plant currently producing silver and gold, which has processed 370,366 tonnes of ore at average grades of 203 g/t silver and 2.17 g/t gold from 2020-2024.
• The Santa Fe Project is strategically located 22 km southeast of Vizsla's flagship Panuco project and immediately south of their recently acquired San Enrique prospect, further consolidating the company's position in the highly prospective Sinaloa Silver Belt.
• The transaction structure includes both an option agreement for production concessions and a purchase agreement for exploration concessions, with a combination of cash payments and share issuances over a five-year period.
• This acquisition has the potential to bolster Vizsla's production profile beyond the 20.2 million ounces AgEq of initial annual production projected for Panuco, while also providing significant exploration upside with only 12% of the property explored to date.

Vizsla Silver Corp. (TSX:VZLA) is a Canadian mineral exploration and development company headquartered in Vancouver, BC, focused on advancing its flagship, 100%-owned Panuco silver-gold project located in Sinaloa, Mexico. The company completed a Preliminary Economic Study for Panuco in July 2024 which highlights 15.2 Moz AgEq of annual production over an initial 10.6-year mine life, an after-tax NPV5% of US$1.1B, 86% IRR and a 9-month payback at US$26/oz Ag and US$1,975/oz Au.

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. The company continues to demonstrate strong execution on its growth strategy in Mexico's Sinaloa Silver Belt, with the Santa Fe acquisition representing another strategic step toward building a significant silver producer with multiple production centers.

Acquisition of Santa Fe Project

On May 2025, Vizsla Silver announced an agreement to acquire the Santa Fe Project, a significant 12,229-hectare property package located along the highly prospective Panuco-San Dimas corridor in western Mexico. The Santa Fe Project sits 22 kilometers southeast of Vizsla's flagship Panuco project and immediately south of the company's recently acquired San Enrique prospect.

The acquisition includes both production and exploration concessions and is being structured as a combination of option and purchase agreements. The company will pay for these assets using a combination of cash and shares over a five-year period.

What makes the Santa Fe Project particularly valuable is its operating infrastructure, which includes a fully permitted 350 tonne-per-day (tpd) flotation plant that is currently producing silver and gold from a northwest-trending epithermal vein. Between 2020 and 2024, the Santa Fe mine processed 370,366 tonnes of ore at average head grades of 203 g/t silver and 2.17 g/t gold, demonstrating the asset's production capabilities.

"Vizsla Silver continues to expand its land position in western Mexico along the highly prospective Sinaloa Silver Belt with the acquisition of the producing Santa Fe mine," stated Michael Konnert, President, and CEO of Vizsla Silver. "With an option agreement now in place on the Santa Fe production concessions, Vizsla Silver has the potential to bolster its overall production profile well beyond the 20.2 million ounces AgEq of initial annual production envisioned for Panuco Project #1."

Strategic Significance for Vizsla Silver

The Santa Fe acquisition plays an important role in Vizsla's growth strategy for several reasons:

• Operating Production Asset: Perhaps the most immediate benefit is the acquisition of an operating production facility. The Santa Fe Project comes with permitted on-site production infrastructure, including an operating 350 tpd flotation plant and an underground mine. This operational asset could potentially accelerate Vizsla's timeline to becoming a multi-asset producer, complementing their development plan for Panuco.

• Regional Consolidation: The acquisition further establishes Vizsla's dominant position in the Sinaloa Silver Belt. With the Santa Fe Project located 22 km southeast from Panuco and immediately south of the recently acquired San Enrique prospect, Vizsla is creating a significant regional footprint along a known mineralized trend. This regional consolidation approach has proven successful for many major mining companies looking to establish mining districts with centralized infrastructure and geological continuity.

• Exploration Upside: A key aspect of the Santa Fe acquisition is the exploration potential. The producing Santa Fe mine and known vein prospects identified to date account for approximately 12% of the total property package. This suggests significant untapped exploration potential across the remaining 88% of the land package.

• Previous Drilling Success: Previous drilling campaigns completed by Aurico Gold and Fortuna Mining in 2014 and 2020, respectively, not only outlined the high-grade shoot currently being mined but also reported anomalous silver intercepts in four other target areas. This historical drilling provides immediate exploration targets for Vizsla to follow up on, potentially expanding the resource base.

Moreover, the entire project area is covered 100% with LiDAR and high-resolution aero-magnetic and radiometric surveys, as well as detailed mapping and IP geophysics around the mine area. This existing technical data will provide Vizsla with a head start on future exploration efforts.

Transaction Structure

The acquisition has been structured in two parts: an option agreement for the production concessions and a purchase agreement for the exploration concessions.

Under the terms of this agreement, Vizsla has the option to acquire a 100% interest in certain production concessions comprising the Santa Fe Project over a five-year period. To exercise this option, Vizsla must:

1. Incur exploration expenditures of US$4,000,000 on the Production Concessions over a five-year period, beginning with US$500,000 within 24 months and concluding with US$500,000 within 60 months of the effective date.
2. Pay to the Optionors a total cash consideration of US$1,500,000 over five years, with US$300,000 payments made annually.
3. Issue to the Optionors 1,373,390 common shares in the capital of the Company over five years, with 274,678 shares issued annually.

As part of the consideration, the Vendor will receive from the company the processing plant known as El Coco plant, including associated assets, in-kind. The Company will provide an inventory valuation of the El Coco plant within 30 days of the effective date.

Panuco Project Progress

While expanding through the Santa Fe acquisition, Vizsla remains committed to advancing its flagship Panuco project.

"Although we continue to be active in terms of corporate development, the company remains focused on delivering a feasibility study for Panuco in the second half of this year, with a goal of achieving first silver in the second half of 2027," added Konnert.

The Panuco project itself is impressive in scale. The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlán. The 7,189.5-hectare, past-producing district benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, roads, power, and permits.

The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.

The company announced an updated mineral resource estimate for Panuco which includes an estimated in-situ combined measured and indicated mineral resource of 222.4 Moz AgEq and an in-situ inferred resource of 138.7 Moz AgEq.

Outlook for Investors

For investors evaluating Vizsla Silver, the Santa Fe acquisition represents a strategic enhancement to the company's Mexican silver portfolio. The acquisition provides multiple potential catalysts:

1. Immediate Production: Unlike most junior mining acquisitions that require years of development, the Santa Fe project brings immediate production capability through its operating 350 tpd plant.
2. Production Growth Potential: The addition of Santa Fe's production could significantly boost Vizsla's overall production profile beyond what was already projected for Panuco.
3. Exploration Upside: With only 12% of the Santa Fe property package explored to date and four established target areas, there is substantial potential for resource expansion.
4. Regional Synergies: The proximity of Santa Fe to Panuco and San Enrique creates potential operational synergies that could improve overall economics.
5. De-risking Through Diversification: By establishing multiple production centers, Vizsla is reducing single-asset risk while leveraging its regional expertise.

The company is advancing toward becoming a silver producer through its dual-track approach of mine development and district-scale exploration. With the feasibility study for Panuco expected in the second half of 2025 and a target of first silver production in the second half of 2027, investors have multiple potential value-creation milestones ahead.

Vizsla Silver's acquisition of the Santa Fe Project represents a significant expansion of the company's footprint in the highly prospective Sinaloa Silver Belt. The acquisition brings immediate production capability through an operating mine and processing plant, while also adding substantial exploration upside with only 12% of the property explored to date.

For investors, this transaction demonstrates Vizsla's commitment to growth through both organic development and strategic acquisitions. The company continues to progress its flagship Panuco project toward production while simultaneously expanding its regional presence and production potential.

As silver continues to play an important role in both monetary and industrial applications, particularly in green technologies like solar panels, Vizsla Silver is positioning itself to become a significant producer in Mexico, one of the world's premier silver jurisdictions.