Vizsla Silver - ESG Report Showcases Commitment to Sustainable Mining & Growth

• Vizsla Silver releases its second annual Sustainability Report, emphasizing ESG practices on environmental stewarship, community wellbeing, and good governance.
• The company's environmental initiatives include planting 4,000 native trees and rehabilitating legacy tailings facilities.
• Social responsibility efforts feature health fairs serving 550 community members and CA$100,000 local investment.
• Governance improvements focus on strengthening ESG reporting and updating social impact assessments. The report aligns with GRI Standards and SASB Metals and Mining Sustainability Accounting Standard.
• Vizsla Silver continues to expand operations and has budgeted for over 45,000 metres of resource and discovery-based drilling in 2024 for its Panuco project in southern Sinaloa, Mexico.

Vizsla Silver Corp. (TSXV:VZLA) has recently published its second annual Sustainability Report, marking a significant milestone in its journey towards sustainable and responsible mining practices. As a Canadian mineral exploration and development company, Vizsla Silver is primarily focused on advancing its flagship Panuco silver-gold project in Sinaloa, Mexico. The company's commitment to environmental stewardship, social responsibility, and ethical governance is clearly reflected in this comprehensive report.

Second Annual Sustainability Report: A Blueprint for Responsible Mining

Headquartered in Vancouver, BC, Vizsla Silver is at the forefront of silver and gold exploration in Mexico. The company's crown jewel, the 100%-owned Panuco project, is an emerging high-grade discovery that has seen over 380,000 metres of drilling to date. With a substantial 2024 drilling program of over 45,000 metres planned, Vizsla Silver aims to expand and upgrade its mineral resource while exploring new high-priority targets across the district.

Environmental Stewardship

One of the most notable achievements highlighted in Vizsla Silver's Sustainability Report is the company's dedication to environmental conservation. In a move that goes beyond mere compliance, Vizsla has taken proactive steps to enhance the local ecosystem and mitigate the environmental impact of its operations.

Native Tree Cultivation Program

The company has successfully cultivated approximately 4,000 native trees, representing 15 different species. This initiative serves a dual purpose:

• Biodiversity Enhancement: By focusing on native species, Vizsla is contributing to the preservation and enhancement of local biodiversity.
• Future Restoration: These trees are being grown with the specific intention of using them in future restoration activities, demonstrating long-term environmental planning.

Legacy Tailings Rehabilitation

In a commendable display of environmental responsibility, Vizsla Silver has maintained voluntary efforts to rehabilitate two aging tailing storage facilities from legacy operations. This action showcases the company's commitment to addressing historical environmental issues, even those that predate its own operations.

The significance of these environmental initiatives cannot be overstated. For investors, this demonstrates that Vizsla Silver is not only focused on resource extraction but is also invested in the long-term health of the ecosystems in which it operates. Such practices can mitigate environmental risks, enhance community relations, and potentially lead to more favorable regulatory treatment.

Social Responsibility: Investing in Community Well-being

Vizsla Silver's approach to social responsibility is multifaceted, focusing on both immediate community needs and long-term development.

Health Fairs: A Lifeline for Local Communities

The company facilitated three health fairs, providing essential medical care to nearly 550 community members. In regions where access to healthcare can be limited, such initiatives can have a profound impact on community well-being. For investors, this demonstrates Vizsla's commitment to maintaining a strong social license to operate, which is crucial for the long-term success of mining projects.

Substantial Community Investment

Vizsla Silver invested nearly CA$100,000 in the local community over the past year, bringing its cumulative total investment to over CA$400,000. This significant financial commitment underscores the company's dedication to fostering positive relationships with local stakeholders.

The scale of this investment is noteworthy, especially for a company still in the exploration and development phase. It suggests that Vizsla Silver is taking a proactive approach to community relations, which can pay dividends in terms of local support for future operations.

Governance: Strengthening the Foundation

Good governance is the bedrock of sustainable business practices, and Vizsla Silver has made significant strides in this area. The company has strengthened its ESG reporting framework and increased transparency by preparing its second annual sustainability report. This commitment to regular, comprehensive reporting allows investors and stakeholders to track Vizsla's progress on sustainability metrics over time.

Social Impact Assessment UpdateVizsla has initiated the process of updating its social impact assessment and formalizing the Social Management Plan. This proactive approach to understanding and managing social impacts demonstrates the company's commitment to maintaining positive community relations and mitigating potential social risks.

For investors, these governance improvements signal that Vizsla Silver is serious about managing ESG risks and opportunities. Strong governance practices can lead to better risk management, improved stakeholder relations, and potentially higher valuations in the long run.

Industry Context: The Importance of ESG in Mining

Vizsla Silver's focus on ESG practices is not occurring in a vacuum. The mining industry as a whole is under increasing pressure to operate more sustainably and responsibly. Several factors are driving this trend:

• Investor Demand: Institutional and retail investors are increasingly considering ESG factors in their investment decisions. Companies with strong ESG practices often enjoy lower costs of capital and higher valuations.
• Regulatory Pressure: Governments worldwide are implementing stricter environmental and social regulations for mining operations. Companies that proactively adopt best practices are better positioned to navigate this evolving regulatory landscape.
• Community Expectations: Local communities are demanding more benefits and fewer negative impacts from mining operations. Companies that fail to meet these expectations risk losing their social license to operate.
• Climate Change Concerns: The mining industry is a significant contributor to greenhouse gas emissions. Companies that take steps to reduce their carbon footprint and support the transition to a low-carbon economy are likely to be more resilient in the long term.
• Supply Chain Scrutiny: End-users of metals and minerals, particularly in sectors like technology and electric vehicles, are increasingly demanding responsibly sourced materials. This creates opportunities for mining companies with strong ESG credentials.

In this context, Vizsla Silver's commitment to sustainable practices, as evidenced by its Sustainability Report, positions the company favorably within the industry.

The Panuco Project: A Silver Lining in Mexico

While the Sustainability Report focuses on ESG practices, it's important for investors to understand the asset that underpins Vizsla Silver's operations – the Panuco project.

The Panuco silver-gold project is located in southern Sinaloa, Mexico, near the city of Mazatlán. Key features include 17,856 hectare land package with over 86 kilometres of total vein extent, 35 kilometres of underground mines, and existing infrastructure including roads and power.

The district contains intermediate to low sulfidation epithermal silver and gold deposits, hosted mainly in continental volcanic rocks correlated to the Tarahumara Formation. This geological setting is favorable for the discovery of high-grade precious metal deposits.

As of January 2024, Vizsla Silver announced an updated mineral resource estimate for Panuco:

• Indicated mineral resource: 155.8 Moz AgEq (silver equivalent)
• Inferred resource: 169.6 Moz AgEq

These figures represent a substantial resource base that positions Panuco as a significant silver-gold project with considerable exploration upside.

2024 Exploration Plans

Vizsla Silver has budgeted for over 45,000 metres of resource and discovery-based drilling in 2024. The objectives of this program are twofold:

• Upgrade and expand the existing mineral resource
• Test high-priority exploration targets across the district

This aggressive exploration approach demonstrates Vizsla's confidence in the potential of the Panuco project and its commitment to creating value through the drill bit.

Challenges & Opportunities

While Vizsla Silver's ESG initiatives are commendable, it's important for investors to consider both the challenges and opportunities that lie ahead:

Challenges:

• Balancing Growth and Sustainability: As Vizsla transitions from exploration to potential development and production, maintaining its high ESG standards while scaling operations will be crucial.
• Regulatory Compliance: Operating in Mexico presents both opportunities and challenges. Navigating the country's evolving regulatory environment will require ongoing diligence.
• Community Expectations Management: As the project advances, local communities may have increasing expectations for benefits and involvement. Managing these expectations will be key to maintaining strong relationships.
• Resource Depletion: Like all mining companies, Vizsla faces the challenge of replacing and expanding its resource base over time.

Opportunities:

• ESG Premium: Companies with strong ESG practices often trade at a premium to their peers. Vizsla's commitment to sustainability could translate into higher valuations over time.
• Access to Capital: As ESG-focused investing grows, Vizsla may find it easier to attract capital for project development.
• Operational Efficiencies: Many ESG initiatives, such as energy efficiency programs, can lead to cost savings and operational improvements.
• First-Mover Advantage: By adopting best practices early, Vizsla may be better positioned to adapt to future regulatory changes and stakeholder expectations.

Investment Thesis for Vizsla Silver

• Strong ESG Foundation: The company has established a solid foundation of ESG practices, which can mitigate risks and create long-term value.
• Significant Exploration Potential: The Panuco project offers substantial resource growth potential, backed by an aggressive exploration program.
• Strategic Location: Operating in Mexico provides access to established mining infrastructure and a skilled workforce.
• Management Commitment: The leadership's focus on sustainable practices suggests a forward-thinking approach to mining development.
• Potential for Premium Valuation: As ESG factors become increasingly important in investment decisions, Vizsla's strong performance in this area could lead to favorable valuations.

While challenges remain, particularly as the company navigates the path from exploration to potential production, Vizsla Silver's commitment to responsible mining practices positions it well for the future. For investors seeking exposure to precious metals through a company that prioritizes sustainability, Vizsla Silver presents an intriguing opportunity in the junior mining sector.

As with any investment in the mining sector, thorough due diligence is essential. However, Vizsla Silver's transparent reporting and clear commitment to ESG principles provide a solid foundation for investors to assess the company's potential as both a financial and responsible investment.