Vizsla Silver's Parallel Development Strategy: Building While Still Drilling

• Vizsla Silver awarded EPCM contract to M3 Engineering (US$170 million scope) and mine design contract to Mining Plus (US$90 million scope), enabling detailed engineering to proceed in parallel with permitting and exploration.
• The company has completed 902 metres of waste development and 169 metres of ore development at the Copala test mine, extracting a 10,000-tonne bulk sample to de-risk plant commissioning through geotechnical confirmation and high-grade ore stockpiling.
• US$60.2 million of the US$238.7 million initial capital expenditure (capex) is allocated to a two-year pre-production mining phase in Copala (South) and Napoleon (South) zones to feed the 3,300-tonne-per-day processing facility from year one.
• Infill drilling targets 25 million ounces of inferred silver equivalent at the northern Copala-Christiano intersection for conversion into the first 5 years of production, while 25,000 metres of 2026 drilling tests regional targets across a district where less than 28% of known veins have been drilled.
• The November 2025 feasibility study reports US$1.8 billion after-tax net present value at a 5% discount rate (NPV5%), 111% internal rate of return (IRR), and a seven-month payback, with a construction decision targeted for mid-to-late 2026, first silver production in the second half of 2027, and US$445 million cash on hand.

Mine Design Partnership

Vizsla Silver Corp. (TSX: VZLA | NYSE: VZLA) has awarded the engineering, procurement & construction management (EPCM) contract to M3 Engineering & Technology Corp. and entered into a mine design contract with Mining Plus for its Panuco silver & gold project in Sinaloa, Mexico. The contract awards formalise relationships that began following the November 2025 feasibility study (FS) and position the company to advance detailed engineering and underground development while permitting and infill drilling proceed in parallel. The EPCM scope covers the process plant and surface infrastructure valued at approximately US$170 million, while Mining Plus's scope covers approximately US$50 million in development capital and approximately US$40 million in ore development over the next 2 years of pre-production.

Development & Engineering Progress

M3 Engineering specialises in mineral processing and infrastructure projects and has participated in the design and construction of several mining projects in Mexico. The firm has worked with Vizsla Silver since finalising the Panuco FS to support planning and development of the project. The company and M3 Engineering are currently finalising the terms and conditions of the definitive EPCM agreement. Mining Plus, part of The Byrnecut Group, is a global mining services firm that has worked with Vizsla Silver since finalising the Panuco preliminary economic assessment (PEA) published in July 2024. Mining Plus has supported mine design, planning, scheduling, and geotechnical work, including contributions to the development of the company's Morgan Test Mine at Panuco.

The company submitted the environmental impact assessment (MIA) in February 2025. Approval and a formal construction decision are both targeted for mid-to-late 2026, with first silver production scheduled for the second half of 2027. With its partners, the company will work off-site to advance detailed design, construction planning, and equipment procurement, while continuing to advance go-forward, long-term security plans for the Panuco project. Vizsla Silver advises that key development activities continue to progress in line with previously disclosed timelines.

Key mining schedule items include awarding a mining contract in the Second Quarter 2026, beginning mining operations upon receipt of the MIA permit, and implementing an infill drilling program over an initial 2-year period to support ramp-up and stockpiling ahead of process plant commissioning. 

Parallel Exploration & Development

The company commenced a bulk sample test mine at the Copala portal in the Fourth Quarter 2024, running parallel to the preparation of the resource update (First Quarter 2025) and completion of the FS (effective November 2025). Pre-production underground work includes 902 metres of waste development (5.5 metres wide by 5.5 metres high) and 169 metres of ore development situated 70 vertical metres below the surface. This development allows Vizsla to extract a 10,000-tonne bulk ore sample. A dedicated pre-stockpile facility is designated on the site layout adjacent to the test mine and Copala portal.

Out of the US$238.7 million initial capital expenditure (capex), US$60.2 million is allocated to pre-production mining. Mine schedules show a 2-year pre-production development phase focused on the Copala (South) and Napoleon (South) zones, ensuring these sectors are ready to feed the 3,300-tonne-per-day processing facility immediately in years 1 and 2. The test mine is being used to confirm geotechnical conditions, determine spatial orientation, and conduct metallurgical testing. Stockpiling high-grade ore before commercial operations acts as a material buffer to heavily de-risk the processing plant's start-up phase. 

Exploration drilling is strategically sequenced to support early production. Vizsla is focusing its infill drilling on the northern Copala-Christiano intersection to upgrade approximately 25 million ounces of inferred silver equivalent. This area is prioritised because it contains optimal mineralisation for extraction during the first 5 years of the mine plan. The company plans a 25,000-metre drill programme in 2026 to test regional targets. To date, less than 28% of the known vein targets at Panuco have been drill tested.

Development Economics & Timeline

The November 2025 FS highlights average annual production of 17.4 million ounces of silver equivalent over an initial 9.4-year mine life, an after-tax net present value at 5% discount rate (NPV5%) of US$1.8 billion, 111% internal rate of return (IRR), and a seven-month payback at US$35.50 per ounce silver and US$3,100 per ounce gold. The study reports proven & probable (P&P) reserves at 318 grams per tonne silver and 2.05 grams per tonne gold for Copala, and 139 grams per tonne silver and 1.95 grams per tonne gold for Napoleon & La Luisa, totalling 123 million ounces of contained silver equivalent in P&P reserves. The mineral reserve was calculated using long-term metal prices of US$28.50 per ounce of silver and US$2,300 per ounce of gold. 

Initial capex is US$238.7 million, including a US$24 million contingency and an additional provision for US$5.4 million project growth, totaling US$29.4 million (14% of the total project estimate). Sustaining capital is US$287 million over the life of the mine. The FS estimates average life-of-mine (LOM) payable silver equivalent production of 17.4 million ounces, average years 1 to 5 payable silver equivalent production of 20.1 million ounces, and all-in sustaining cost (AISC) of US$10.61 per ounce silver equivalent. Operating expenditure (OpEx) is US$85.11 per tonne milled. LOM head grade is 425 grams per tonne silver equivalent.

Execution & Next Steps

Upcoming milestones include awarding the mining contract in the Second Quarter of 2026, MIA permit approval targeted for mid-2026, construction decision targeted for mid-to-late 2026, and first silver production in the second half of 2027. The company is fully financed with US$445 million cash plus in-the-money (ITM) options and US$60 million in equity holdings, including US$240 million net proceeds from a capped call convertible bond issuance completed in November 2025.

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