Reyna Silver Corp. (TSX-V: RSLV) (OTCQB: RSNVF) (FRA: 4ZC) is pleased to announce the closing of the second tranche of its previously announced “bought deal” private placement of units for gross proceeds of C$3,011,916. Under the AI Tranche, the Company sold 10,039,720 units of the Company at a price of C$0.30 per Unit. The Offering is being completed pursuant to an underwriting agreement dated February 13, 2023, as amended by an amending agreement dated February 21, 2023 with Eight Capital, as lead underwriter and bookrunner, and a syndicate of underwriters.

Each Unit issued in the AI Tranche is comprised of one common share of the Company and one common share purchase warrant, with each Warrant entitling the holder thereof to purchase one additional Common Share at a price of C$0.40 per Common Share at any time on or before February 23, 2026.

Pursuant to the Underwriting Agreement, under the AI Tranche, the Underwriters received a cash amount of $126,102.90 and were issued 517,009 compensation warrants. Each Compensation Warrant entitles the holder to purchase one unit of the Company at a price of C$0.30 per Compensation Unit at any time on or before February 23, 2025. Each Compensation Unit is comprised of one common share of the Company and one common share purchase warrant. Each Compensation Warrant is exercisable to acquire one common share of the Company for a period of 36 months following the date of issue at an exercise price of $0.40 per Compensation Warrant Share. The Company also paid cash finder’s fees totaling $51,743.62 to certain arm’s length finders.

The Company intends to use the net proceeds of the Offering for ongoing exploration and drilling at the Company’s Medicine Springs, Guigui and Batopilas projects, and for general corporate purposes.

“We thank our long-term investors as well as the new institutional and high-profile investors whose enthusiasm and support made the $8M CAD over-subscribed bought-deal financing with Eight Capital and syndicates Canaccord and Echelon a success,” said Jorge Ramiro Monroy, CEO of Reyna Silver. “The proceeds of the raise enable Reyna Silver to move all three of our district-scale projects forward.”

The 10,039,720 Units sold pursuant to the AI Tranche were offered for sale to purchasers pursuant to the accredited investor exemption under section 2.3 of NI 45-106 and are subject to a statutory hold period of four months and one day.

The Company closed the first tranche of the Offering on February 13, 2023 for gross proceeds of C$4,999,800. Under the LIFE Tranche, the Company sold 16,666,000 units on the same terms of the Units in the AI Tranche, other than in relation to the statutory hold period, as described below.

In compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 – Prospectus Exemptions, the 16,666,000 units sold pursuant to the LIFE Tranche were offered for sale to purchasers resident in Canada, except Quebec, and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 and are not subject to a statutory hold period.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction. No securities may be offered or sold in the United States or in any other jurisdiction in which such offer or sale would be unlawful absent registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom or qualification under the securities laws of such other jurisdiction or an exemption therefrom.

About Reyna Silver Corp.

Reyna Silver Corp. is a growth-oriented junior exploration and development company focused on exploring for high-grade, district-scale silver deposits in Mexico and USA.

Reyna’s principal properties are the Guigui and Batopilas Properties in Chihuahua, Mexico. Guigui covers the interpreted source area for the Santa Eulalia District and Batopilas covers most of Mexico’s historically highest-grade silver system. The Company also has an option to acquire 100% of the Medicine Springs property in Nevada, USA as well as the early stage La Durazno and Matilde and La Reyna mineral properties in Mexico.