Vizsla Silver: Strategic Financing & Fast-Track Development Position for Near-Term Production Success

• Strategic Financial Position: C$130 million cash position (US$90+ million) provides full funding for near-term objectives and future development phases
• Advanced Development Status: Transition from exploration to development backed by industry-leading PEA with 5x NPV to CAPEX ratio
• Production Timeline: Test mine underway with targeted production in H2 2027; potential construction start in H1 2026
• Resource Growth: 43% increase in M&I resources to 222 million ounces, with significant exploration upside
• Market Positioning: Set to become the world's largest single-asset primary silver producer with sub-$9 AISC

Setting the Stage for 2025

Vizsla Silver has undergone a transformative evolution in 2024, positioning itself as a premier silver developer on the cusp of becoming a significant producer. As CEO Michael Konnert emphasizes:

"We fundamentally shifted from a solely exploration company into a development company last year in 2024."

This transition is backed by substantial financial resources and technical achievements, most notably their industry-leading Preliminary Economic Assessment (PEA).

The company's strong treasury position of C$130 million (US$90+ million) provides a solid foundation for executing their development strategy. This financial strength was achieved through strategic fundraising following key technical milestones, particularly the PEA which demonstrated "incredible economics, NPV to capex ratio of five times."

"[The PEA is] truly industry leading, unlike anything that we've seen in the silver market in a very long time."

Interview with President & CEO, Michael Konnert

Financial Strategies & Market Positioning

Vizsla's approach to financing demonstrates a strategic departure from industry norms, raising capital earlier in the development cycle to ensure maximum flexibility and risk mitigation. As Konnert explains the rationale:

"If I'm an investor in a company, I want the management to basically de-risk the future of the company by ensuring that there's a significant amount of capital to accomplish not only the near-term goals. For us, the near-term goals are the test mine, which we're fully funded for, the feasibility study, and that exploration drilling that we're doing in the East. So we're well funded for that, but we're also funded for the next phase, which means that if we get our permits quicker than we expect and if we can move this project into production quicker than we expect, we won't see that pressure from the market expecting a financing. We can go out and say we're financed to do this next phase of development and the market's not going to punish us and force us into a discounted financing."

This proactive financing strategy serves multiple purposes:

• Fully funds immediate development priorities including the test mine and feasibility study
• Provides capital for continued exploration in the eastern section
• Creates flexibility to accelerate development if permitting progresses faster than anticipated
• Prevents potential dilution from future forced financings

The company's position as a pure-play silver developer has proven particularly attractive to institutional investors. As Konnert notes:

"The landscape of silver producers and silver developers is quite sparse. There's really only a handful of meaningful silver primary producers out there. And because of that, they command a higher premium and they trade at excellent valuations."

The Test Mine: A Step Towards Production

Vizsla's test mine development represents a strategic cornerstone of their future production infrastructure, not merely a preliminary exploration effort. The current development features a 5-by-5-meter box cut into the mountainside, with ongoing shotcrete application and wall reinforcement ensuring long-term stability. This permanent decline will extend just under a kilometer in length, with completion targeted for 2025.

The development's strategic location adjacent to the planned mill site creates significant operational efficiencies for future production. By developing what will become the permanent mine entrance, Vizsla can immediately begin ore extraction and stockpiling once the decline reaches the Copala vein. This approach addresses one of the most common challenges in underground mining operations - ensuring sufficient ore availability during mill startup.

The test mine allows for geological model validation, detailed geotechnical studies, and bulk metallurgical testing. Most importantly, it enables the accumulation of substantial ore stockpiles before mill construction, effectively de-risking the crucial early production phase. With Copala's impressive 10-meter vein thickness - approximately ten times the average of similar Mexican silver veins - this approach positions Vizsla to maximize early cash flows and minimize operational risks during the critical startup period.

Production Timeline & Market Dynamics

Vizsla has outlined a clear pathway to production, targeting commencement in the second half of 2027. Konnert provides specific timing:

"We could be constructing this mine in the first half of 2026." The project's economics are particularly compelling, with "a nine month payback period... at spot prices today, it's probably more like six months payback."

The company's progress is supported by positive developments in the permitting environment, with Konnert noting recent government initiatives: "I met with the government of Mexico City and they said that... they want to expedite permitting."

Exploration & Future Growth Opportunities

Recent drilling success has significantly enhanced the project's resource base, with Konnert highlighting "a 43% increase in M&I. Now that gives us over 222 million ounces that can go into this updated mine plan." This expansion materially improves the upcoming feasibility study's potential.

Looking ahead, the company maintains significant exploration potential:

"We've got centers of mass that we've seen sprinkled throughout the project, mostly to the east, that we're going to be testing. Any success on that could be really momentous for Vizsla because it means that not only do we have this project number one, but now we have a line of sight towards the next step of organic growth."

M&A Considerations & Strategic Focus

While maintaining an opportunistic approach to M&A, management's priority remains developing their flagship asset. Konnert is clear about the company's focus:

"When we look at the M&A landscape, there's really nothing out there that we would like to prioritize over what we're doing. We think that this is the best silver development project in the world."

The company's strategic focus has been on district consolidation, with Konnert noting: "We were the first company to consolidate this district in modern history... we ended up tripling our land package."

The Investment Thesis for Vizsla Silver

• Strong Financial Position: Fully funded through near-term milestones with C$130 million treasury
• Clear Path to Production: Well-defined timeline with construction potential in H1 2026
• Industry-Leading Economics: 5x NPV/CAPEX ratio with sub-$9 AISC
• Significant Resource Growth: 43% M&I resource increase with further upside
• Strategic Land Position: Dominant position in an emerging silver district
• Experienced Management: Team with proven track record in mine development
• Market Re-rating Potential: Multiple catalysts including feasibility study and permitting progress

Macro Thematic Analysis

The silver market presents a compelling investment case, particularly for well-positioned developers like Vizsla Silver. As Konnert notes:

"We're in a fifth year of a supply deficit and silver probably has the most attractive supply and demand equation out of any metal. And it's such a small market that any real movements in that can cause the price of the metal to multiply very rapidly."

The current market environment, characterized by geopolitical tensions and economic uncertainty, typically favors precious metals as safe-haven assets. This dynamic is particularly relevant given recent geopolitical developments, with Konnert observing that "there's a flight to security in the sense of people like to buy gold and silver in times of uncertainty like this."

The scarcity of quality silver development projects adds significant strategic value to Vizsla's asset base. With few pure-play silver developers advancing projects of similar scale and grade, the company is well-positioned to capture investor attention as it progresses toward production. The project's location in Mexico, despite recent tariff discussions, remains advantageous due to the country's established mining framework and infrastructure.

The company's low projected AISC of under $9 per ounce provides significant operating leverage to higher silver prices while maintaining profitability at current price levels. This operational flexibility, combined with the project's scale and grade, positions Vizsla as a potentially attractive investment opportunity in the silver sector. As Konnert concludes:

"If silver goes to $40 or $50, that's going to be excellent for us, of course, because we're producing at an ASIC of sub $9. So that's an incredible margin. But we don't need it to. We're going to be a very high margin producer at most silver prices."