AbraSilver Resource Corp. (TSX-V: ABRA) (OTCQX: ABBRF) is pleased to announce that it has closed its previously announced underwritten private placement financing including the exercise in full of the underwriters’ option. Pursuant to the Offering, the Company issued an aggregate of 27,027,000 units for gross proceeds of $9,999,990.

Each Unit, priced at $0.37 per Unit, consists of one common share in the capital of the Company and one-half of one Common Share purchase warrant. Each Warrant entitles the holder thereof to purchase one additional Common Share at an exercise price of $0.50 until December 6, 2024.

The Company intends to use the net proceeds of the Offering: (i) to complete the ongoing Phase III drilling program on the Diablillos Project in the Salta province of Argentina; (ii) to commence and complete a drilling program on the La Coipita Project in the San Juan province of Argentina; (iii) to satisfy the Company’s mineral interest commitments for the Diablillos Project and the La Coipita Project; and (iv) for working capital purposes, as further described in the Company’s offering document under the Listed Issuer Financing Exemption dated November 29, 2022.

The Offering was led by a syndicate of underwriters, with Eight Capital acting as lead underwriter and sole bookrunner and including National Bank Financial Inc., Clarus Securities Inc., and Stifel GMP. In connection with the Offering, the Underwriters received an aggregate cash commission in the amount of approximately $565,000 and an aggregate of 1,527,075 non-transferable broker warrants. Each Broker Warrant entitles the holder thereof to acquire one Unit at an exercise price of $0.37 until June 6, 2024.

The Offering was completed pursuant to the Listed Issuer Financing Exemption (as defined in National Instrument 45-106 – Prospectus Exemptions), and the securities issued to purchasers in the Offering are not subject to a hold period pursuant to applicable Canadian securities laws.

The Offering is subject to the final approval of the TSX Venture Exchange (the “Exchange”). The securities issued to certain insiders of the Company in the Offering are subject to a four-month hold period ending on April 7, 2023 in accordance with the policies of the Exchange.

Certain directors of the Company participated in the Offering and purchased an aggregate of 190,000 Units. The insider participation in the Offering constitutes a related party transaction pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.

The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61- 101 in respect of related party participation in the Offering as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved related parties, exceeded 25% of the Company’s market capitalization as determined under MI 61-101.

Advisors

Dentons Canada LLP acted as counsel to the Company. Borden Ladner Gervais LLP acted as counsel to the Underwriters.

About AbraSilver

AbraSilver is an advanced-stage exploration company focused on rapidly advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina. The current Measured and Indicated Mineral Resource estimate for Diablillos consists of 51.3 Mt grading 66g/t Ag and 0.79g/t Au, containing approximately 109Moz silver and 1.3Moz gold, with significant further upside potential based on recent exploration drilling. The Company is led by an experienced management team and has long-term supportive shareholders including Mr. Eric Sprott. In addition, AbraSilver owns a portfolio of earlier-stage copper-gold projects including the La Coipita copper-gold project in the San Juan province of Argentina.