DPM Metals Inc. (TSX: DPM) (ASX: DPM) (ARBN: 689370894) announced its operating and financial results for the first quarter ended March 31, 2026.

Highlights

(Unless otherwise stated, all monetary figures in this news release are expressed in U.S. dollars.)

• On-track to meet guidance: Produced 84,042 gold equivalent ounces (“GEO”)¹ in the first quarter. DPM is on-track to achieve 2026 production guidance.
• All-in sustaining cost: Reported cost of sales per GEO sold of $1,323 and all-in sustaining cost per GEO sold² of $1,686, which ref lected a $186 per GEO sold impact related to mark-to-market adjustments to share-based compensation as a result of DPM’s strong share price performance. DPM reconfirmed its 2026 guidance for all-in sustaining cost of $1,300 to $1,450 per GEO sold.
• Record free cash flow generation: Generated $203 million of free cash flow² and $155 million of cash provided from operating activities.
• Strong adjusted net earnings per share: Reported adjusted net earnings² of $168 million ($0.76 per share²) and record net earnings of $166 million ($0.75 per share).
• Vareš ramp-up to full production on-track: DPM has continued to make strong progress at Vareš, with development rates in-line with expectations. Va reš is on track to achieve the 850,000 tonnes per year rate by year-end.
• Advancing Čoka Rakita: Permitting continues to advance as planned, in support of targeted start-up of mine construction in early 2027.
• Dumitru Potok drilling program: DPM received the normal course renewal of exploration permits for the Čoka Rakita licence as anticipated in mid-March 2026. A 20,000-metre drilling program was initiated with nine drill rigs currently active.
• Substantial liquidity for growth: Ended the quarter with a total of $575.5 million in cash and cash equivalents and an undrawn revolving $400 million credit facility with accordion feature to $550 million.
• Continued capital discipline: Returned $33.6 million, representing 17% of free cash flow, to shareholders during the quarter through dividends paid and shares repurchased.

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¹   The Company uses conversion ratios for calculating GEO for its silver, copper, zinc and lead production and sales, which are calculated by multiplying the volumes of metal produced or sold, as applicable, by the respective average market metal prices, and dividing the resulting figure by the average market gold price.
²   Free cash flow, adjusted net earnings, adjusted basic earnings per share, and all-in sustaining cost per GEO sold are non-GAAP financial measures or ratios. These measures have no standardized meanings under IFRS Accounting Standards (“IFRS”) and may not be comparable to similar measures presented by other companies. Refer to the “Non-GAAP Financial Measures” section commencing on page 12 of this news release for more information, including reconciliations to IFRS measures.

CEO Commentary

David Rae, President and Chief Executive Officer, made the following comments in relation to the first quarter results:

“The combination of DPM’s solid operating performance in the first quarter and strong metals prices generated a record $203 million of free cash flow. The high-grade, low-cost nature of our operations and our disciplined focus on cost management positions us well to continue delivering consistent margins in the midst of challenging global economic conditions.

We are very pleased with the progress we are making at Vareš, which continues to be on track to achieve the 850,000 tonne per year run-rate by year-end. We are achieving our targeted development rates, and advancing construction of the paste backfill plant, which is expected to commission in the third quarter.

“We initiated a 20,000-metre drilling program at Dumitru Potok near the end of March as planned. With a significant mineral resource already defined, we are excited to continue work to infill and extend Dumitru Potok, which together with the Čoka Rakita project, highlight the Rakita camp’s district-scale potential.”

Use of non-GAAP Financial Measures

Certain financial measures referred to in this news release are not measures recognized under IFRS and are referred to as non-GAAP financial measures or ratios. These measures have no standardized meanings under IFRS and may not be comparable to similar measures presented by other companies. The definitions established and calculations performed by DPM are based on management’s reasonable judgment and are consistently applied. These measures are intended to provide additional information and should not be considered in isolat ion or as a substitute for measures prepared in accordance with IFRS. Non-GAAP financial measures and ratios, together with other financial measures calculated in accordance with IFRS, are considered to be important factors that assist investors in assessing the Company’s performance.

The Company uses the following non-GAAP financial measures and ratios in this news release:

• mine cash cost
• cash cost per tonne of ore processed
• mine cash cost of sales
• cash cost per GEO sold
• all-in sustaining cost
• all-in sust aining cost per GEO sold
• adjusted earnings (loss) before interest, taxes, depreciation and amortization (“adjusted EBITDA”)
• adjusted net earnings (loss)
• adjusted basic earnings (loss) per share
• cash provided from operating activities, before changes in working capital
• free cash flow
• average realized metal prices

For a detailed description of each of the non-GAAP financial measures and ratios used in this news release and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the ‍ Non-GAAP Financial Measures” section commencing on page 14 of this news release.

Key Operating and Financial Highlights

(1)  Operating and financial highlights for the first quarter of 2025 did not include Vareš results, which was acquired on September 3, 2025.
(2)  The Company uses conversion ratios for calculating GEO for its silver, copper, zinc and lead production and sales, which are calculated by multiplying the volumes of metal produced or sold, as applicable, by the respective average market metal prices, and dividing the result ing figure by the average market gold price.
(3)  Cost of sales per GEO sold represents total cost of sales for Chelopech, Ada Tepe and Vareš, where applicable, divided by GEO sold, while all-in sustaining cost per GEO sold includes treatment and freight charges, where applicable, all of which are reflected in revenue.
(4)  All-in sustaining cost per GEO sold; average realized metal prices; adjusted EBITDA; adjusted net earnings; adjusted basic earnings per share and free cash flow are non-GAAP financial measures or ratios. Refer to the “Non-GAAP Financial Measures” section commencing on page 14 of this news release for more information, including reconciliations to IFRS measures.
(5)  Capital expenditures incurred are reported on an accrual basis and do not represent the cash outlays for capital expenditures.
(6)  Sustaining capital expenditures are generally defined as expenditures that support the ongoing operation of the asset or business wit hout any associated increase in capacity, life of assets or future earnings. This measure is used by management and investors to assess the extent of non-discretionary capital spending being incurred by the Company each period.
(7)  Growth capital expenditures are generally defined as capital expenditures that expand existing capacity, increase life of assets and/or increase future earnings. This measure is used by management and investors to assess the extent of discretionary capital spending being undertaken by the Company each period.
(8)  Excluded cash provided from operating activities of $173.2 million during the first quarter of 2025 related to a tolling agreement between DPM and Sinomine Resource Group Co. Ltd. (“Sinomine”) as a result of the disposition of the Tsumeb smelter by DPM in August 2024 (the “DPM Tolling Agreement”).
(9)  Excludes payments for taxes on share repurchases of $2.3 million (2025 – $1.0 million) for the first quarter o f 2026.

Performance Highlights

The following table compares production, sales and cash cost measures by asset for the first quarter of 2026 against 2026 guidance:

(1)  At Vareš, cash cost per tonne of ore processed is calculated based on gross operating costs, prior to pre-co mmercial production cost capitalization, divided by total volumes of ore processed. On a net basis, cash cost was $182 per tonne of ore processed for the first quarter of 2026.

With solid operating performance in the first quarter of 2026, the Company is on track to meet its guidance for 2026, with higher production planned in the second half of the year as Vareš continues to ramp-up and remains on track to achieve full production by year-end.

Highlights include the following:

Chelopech, Bulgaria: GEO produced in the first quarter of 2026 was lower than 2025, due primarily to lower production and higher prices for gold, partially offset by higher production and prices for copper and silver. Production is expected to increase in the second quarter, and Chelopech is on-track to achieve its production guidance for 2026. Gold contained in concentrates produced in the first quarter of 2026 was lower than 2025, due primarily to lower gold recoveries and lower volumes of ore processed. Copper production in the first quarter of 2026 was higher than 2025, due primarily to higher copper grades, in line with the mine plan.

GEO sold in the first quarter of 2026 was comparable to 2025 due primarily to lower GEO produced, largely offset by timing of deliveries. Payable gold in concentrates sold in the first quarter of 2026 was lower than 2025, due primarily to timing of deliveries. Payable copper in the first quarter of 2026 was higher than 2025, due primarily to higher copper production and timing of deliveries.

All-in sustaining cost per GEO sold in the first quarter of 2026 was higher than 2025, due primarily to a stronger Euro relative to the U.S. dollar, higher labour costs, higher royalties reflecting higher metal prices, and timing of maintenance activities.

Ada Tepe, Bulgaria: Ada Tepe is s cheduled to reach the end of its life by mid-2026, with the final production blast completed on April 16, 2026. Gold contained in concentrate produced and GEO produced in the first quarter of 2026 were comparable to 2025.

Payable gold in concentrate sold and GEO sold in the first quarter of 2026 were slightly lower than 2025 due primarily to the timing of deliveries.

All-in sustaining cost per GEO sold in the first quarter of 2026 was higher than 2025, due primarily to higher royalties reflecting higher royalty rates effective January 2026 and higher metal prices, a stronger Euro relative to the U.S. dollar and lower volumes of GEO sold, partially offset by lower cash outlays for sustaining capital expenditures as a result of the upcoming mine closure.

Vareš, Bosnia and Herzegovina: DPM has continued to make strong progress at Vareš, with development rates in-line with expectations, and contin ues to advance construction of the paste backfill plant. Metals contained in concentrates produced was in line with the planned ramp-up of the mine to full production of 850,000 tonnes per annum by the end of 2026. Vareš is on track to achieve its guidance for 2026. During the second quarter, the processing plant will be shut down for approximately 20 days for the preparation of installation tie-ins for the second tailings filter. This will allow installation of the tailings filter with minimal impact to the higher production rates anticipated in the second half of the year.

Payable metals in concentrates sold were lower than metals produced due primarily to timing of deliveries.

Cash operating costs, before capitalization, are expected to be in line with the 2026 guidance. As the mine achieves commercial production, the Company will be evaluating opportunities to optimize the cost structure for 2027 and beyond, targeting the cash cos t per tonne metrics outlined in the Vareš Technical Report.

Consolidated Operating Highlights

Production: GEO production in the first quarter of 2026 was 42% higher than 2025 due primarily to higher overall metal production following the acquisition of Vareš.

Deliveries: GEO sold in the first quarter of 2026 was 25% higher than 2025 due primarily to higher overall metals sold following the acquisition of Vareš, partially offset set by timing of deliveries.

Cost measures: Cost of sales in the first quarter of 2026 was 47% higher than 2025 due primarily to the inclusion of Vareš, a stronger Euro relative to U.S. dollar, higher labour costs and higher royalties.

All-in sustaining cost per GEO sold in the first quarter of 2026 was 12% higher than 2025, due primarily to a stronger Euro relative to the U.S. dollar, and higher royalties reflecting higher metal prices at Chelopech and Ada Tepe, as well as higher royalty rates at Ada Tepe.

Mark-to-market adjustments to share-based compensation expenses resulted in an increase of $186 per GEO sold in the first quarter of 2026 compared to an increase of $188 per GEO sold in 2025.

Capital expenditures: Sustaining capital expenditures incurred in the first quarter of 2026 were 58% lower than 2025, due primarily to no capital expenditures at Ada Tepe as a result of its upcoming mine closure, partially offset by timing of expenditures at Chelopech.

Growth and other capital expenditures incurred in the first quarter of 2026 were 190% higher than 2025, due primarily to the capital expenditures at Vareš, including the capitalization of certain pre-commercial production operating costs, partially offset by lower costs related to the Čoka Rakita project d ue primarily to timing of expenditures.

Consolidated Financial Highlights

DPM delivered record quarterly financial results in the first quarter of 2026 in earnings and free cash flow, benefiting from higher metal prices and the addition of the Vareš mine to its portfolio. The financial results of Vareš have been included in the Company’s consolidated financial statements since September 3, 2025, the date of acquisition.

Revenue: Revenue in the first quarter of 2026 was 115% higher than 2025 due primarily to higher realized metal prices and the inclusion of Vareš pre-commercial production revenue.

Net earnings: Net earnings in the first quarter of 2026 were 395% higher than 2025 due primarily to higher realized metal prices and the inclusion of Vareš, partially offset by higher income taxes and cost of sa les. The first quarter of 2025 also included a one-time levy of $24.4 million to the Bulgarian state budget related to Chelopech and Ada Tepe.

Adjusted net earnings: Adjusted net earnings in the first quarter of 2026 were 203% higher than 2025, due primarily to the same factors affecting net earnings, with the exception of adjusting items primarily related to the one-time Bulgarian levy in 2025.

Cash provided from operating activities: Cash provided from operating activities in the first quarter of 2026 was 181% higher than 2025, due primarily to higher adjusted net earnings, partially offset by changes in working capital related to timing of payments to suppliers and cash redemption of certain Deferred Share Units (“DSUs”).

Free cash flow: Free cash flow in the first quarter of 2026 was 157% higher than 2025, due primarily to the same factors impacting adju sted net earnings. Free cash flow is calculated before changes in working capital.

Development Projects Update

Čoka Rakita, Serbia

Project execution readiness as well as operational readiness planning continued in the first quarter, leveraging the project’s proximity to DPM’s Chelopech underground mine and Ada Tepe processing facilities to support training and development of key personnel for future operating roles.

The Company continues to advance permitting for the Čoka Rakita project in-line with the well-defined Serbian permitting process to support commencement of construction in early 2027. The Special Purpose Spatial Plan, which was initiated in November 2025 and is a key permitting milestone, continues to progress well and is expected to be approved and adopted in the second half of 2026. Following that, DPM anticipates submission of the exploita tion field application. Most baseline studies required for the Environmental and Social Impact Assessment have been completed, and it is expected to be submitted at year-end. The Company continues to proactively engage with relevant authorities and stakeholders to support timely advancement of remaining permits and approvals.

Planning for the Čoka Rakita project continues to emphasize responsible environmental management, social development, and the design, operation, and closure of the mine in accordance with industry best practices and applicable Serbian and European Union standards.

The Company has planned to spend between $49 million to $53 million of growth capital expenditures for the Čoka Rakita project in 2026, with $3.9 million incurred in the first quarter of the year.

These activities are primarily related to pre-construction activities, including detailed engineering, environmental and permitting a ctivities, early works, and operational readiness planning. Subject to permitting progress and schedule acceleration, approximately $42 million of pre-committed initial capital for the project was also included in the 2026 detailed guidance related to early contractor engagement and procurement activities in advance of a formal construction decision, which is expected in early 2027.

Exploration

Rakita Camp, Serbia

During the first quarter of 2026, exploration activities in Serbia were performed on the Potaj Čuka licence, which is adjacent to Čoka Rakita, and the Miranovac licence, which is located in eastern Serbia, approximately 80 kilometres from Bor. A total of 5,455 metres of drilling was completed during the quarter.

The Company continued its drilling campaign on the Potaj Čuka licence, which is primarily focused on the Valja Saka prospect, increasin g the number of drill rigs to eight by the end of the quarter. This program aims to test the continuation of mineralized zones and different mineralization styles intersected in previous campaigns, as well as to confirm the interpreted structural pattern of the area. The Company is also prepared for drilling at additional Potaj Čuka targets, including a new target area which was identified between Valja Saka and Dumitru Potok prospects as a potential extension of the Dumitru Potok mineralized system.

In mid-March 2026, DPM received the normal course renewal of exploration permits for the Čoka Rakita licence as anticipated. A 20,000-metre drilling program was initiated at the end of March, with nine drill rigs currently active. A significant component of the drilling program will be allocated to infilling and extending mineralization at Dumitru Potok and increasing the drilling density prior to initiating an economic study. An additional 20,000 metres of dri lling and six to eight drill rigs will be dedicated to the Putaj Čuka licence, targeting the same north-west geological trend of the Čoka Rakita and Dumitru Potok projects.

The Company has planned to spend between $25 million and $30 million in 2026 for Serbian exploration activities, with $6.2 million incurred in the first quarter of the year, primarily focused on Čoka Rakita and Potaj Čuka licences.

Chelopech, Bulgaria

In-mine exploration: DPM remains committed to extending the life of the Chelopech mine through its focused in-mine exploration program targeting resource development. During the first quarter of 2026, the Company completed 11,644 metres of drilling with 2,619 metres dedicated to extensional drilling. The program aimed to expand the existing mineralization, improve ore boundary definition, and increase confidence in the Mineral Resource Estimate within the Ch elopech deposit.

In 2026, the Company has planned a total of $4 million to $5 million for Chelopech in-mine exploration activities, which is included in the 2026 guidance for the growth capital expenditures, primarily focused on extensional drilling in the upper levels of the mine.

Wedge Zone Deep: Target delineation drilling of the new high-grade mineralization at the Wedge Zone Deep target, located within the northern flank of the Chelopech mine concession, continues with two drill rigs active. A total of 10,126 metres were drilled in the first quarter of 2026. Interpretation, modelling, geotechnical and metallurgical test works are being advanced to support initial mineral resource evaluation for the Wedge Zone Deep target. DPM plans to provide an update on results and significant drilling intercepts within the second quarter of 2026.

Other brownfields exploration: Brownfield exploration continued within the Chelopech mine concession and Brevene exploration licence during the first quarter of 2026 with a total of 19,374 metres of exploration and target delineation drilling with twelve active diamond drill rigs.

The Company continues to advance the process of converting the Brevene exploration licence to a Commercial Discovery, the next phase of work towards converting the licence to a mining concession under the Bulgarian permitting process. Surface drilling continues sequentially, following receipt of drilling permits, with six drill rigs focused on assessing the mineral resource potential in the Vozdol area and prioritized targets within the exploration licence.

The Company has planned a total of $16 million to $17 million for Chelopech brownfield exploration activities in 2026, primarily focused on testing near-mine targets on the Chelopech mine concession, with $5.6 million incurred in the first quarte r.

Vareš, Bosnia and Herzegovina

During the first quarter of 2026, exploration activities at Vareš were concentrated on the Selište and Rupice–Medujak–Borovica prospect areas within the Veovača–Orti–Selište–Mekuše and Rupice-Borovica exploration licence areas, respectively. Work completed during the quarter included finalization of channel sampling at Selište, re-logging and re-sampling of previously overlooked intervals in drill holes at Medujak, Borovica and Rupice, and prospecting and detailed geological mapping at Borovica and Juraševac. Regional 3D geological modelling covering all Vareš exploration licences was completed during the quarter, while the Rupice geological model advanced to approximately 70% completion.

The Company expects to begin its 2026 surface drilling program during the second quarter. Priorities for the second quarter include commencement of drilling at p riority Rupice-Borovica targets, advancement of the Rupice and Droškovac 3D models, completion of the Droškovac geometallurgical assessment, and execution of planned geophysical surveys and mapping to support target generation.

The Company has planned a total of $10 million to $11 million in expenditures for Vareš brownfield exploration, and $1 million to $2 million for Bosnia greenfield exploration in 2026, with a total of $1.4 million incurred in the first quarter.

Balance Sheet Strength and Financial Flexibility

The Company continues to maintain a strong cash and liquidity position and is well-positioned to fund growth, ending the year with a cash position of $575.5 million, no debt and an undrawn $400.0 million revolving credit facility with an accordion feature to $550 million.

Cash and cash equivalents increased by $77.7 million in 2026 due primarily to earnings generated in the pe riod, partially offset by cash outlays for capital expenditures, cash redemption of certain DSUs, payments for shares repurchased under the NCIB and dividends paid.

Return of Capital to Shareholders

In line with its disciplined capital allocation framework, DPM continues to return excess capital to shareholders, which currently includes a sustainable quarterly dividend and periodic share repurchases under the NCIB.

During the first quarter of 2026, the Company returned a total of $33.6 million to shareholders through the repurchase of approximately 0.7 million shares, for a total cash payment of $24.7 million, and $8.9 million of dividends paid. During April 2026, the Company purchased additional 0.4 million shares, bringing year-to-date 2026 repurchases to 1.1 million shares for an aggregate cost of $40.3 million.

The Company’s Board of Directors has authorized management to repurchase up to $200 million of the Company’s shares in 2026 under the NCIB.

On May 5, 2026, the Company declared a dividend of $0.04 per common share payable on July 15, 2026 to shareholders of record on June 30, 2026.

2026 Guidance and Three-year Outlook

With higher production planned for the balance of the year, DPM is on track to achieve its 2026 guidance, including expected GEO production of 305,000 to 365,000 ounces, and an all-in sustaining cost of $1,300 to $1,450 per GEO sold, subject to dynamics such as the mark-to-market impact of DPM’s share price, as well as other movements as outlined below relative to guidance assumptions.

Certain key cost measures in the Company’s detailed guidance for 2026 are sensitive to market assumptions, including metal prices, oil prices and foreign exchange rates. The following table demonstrates the sensitivity in these market assumptions over the balance of the year on the consolidated GEO sold and all-in sustaining cost per GEO sold provided in the 2026 guidance.

1. The Company’s 2026 guidance assumes an oil price of $65 per barrel. The increase in crude oil prices beginning in March 2026 had a minimal impact on the Company’s all-in sustaining cost per GEO sold in the first quarter. However, if oil prices remain elevated under the current geopolitical environment, the Company expects higher costs for diesel consumed in mine operations, as well as for freight charges included in selling cost, which are sensitive to oil prices. For the balance of 2026, each $10 per barrel change in the oil price is expected to impact the Company’s all-in sustaining cost by approximately $11 per GEO sold, comprising an estimated $3 per GEO impact from direct diesel costs and $8 per GEO impact from freight charges.

For additional information regarding the Company’s detailed guidance for 2026 and current three-year outlook, please refer to the “Three-Year Outlook” section of the MD&A.

This news release and DPM’s unaudited condensed interim financial statements and MD&A for the three months ended March 31, 2026 are posted on the Company’s website at www.dpmmetals.com and have been filed on SEDAR+ at www.sedarplus.ca.

Qualified Person

The technical and scientific information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves, and has been reviewed and approved by Ross Overall, B.Sc. (Applied Geology ), Director, Corporate Technical Services, of DPM, who is a Qualified Person as defined under NI 43-101, and who is not independent of the Company.

About DPM Metals Inc.

DPM Metals Inc. is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Bosnia and Herzegovina, Serbia and Ecuador. The Company’s purpose is to unlock resources and generate value to thrive and grow together. Our strategic objective is to become a mid-tier precious metals company, which is based on sustainable, responsible and efficient gold production from our portfolio, the development of quality assets, and maintaining a strong financial position to support growth in mineral reserves and production through disciplined strategic transactions. This strategy creates a platform for robust growth to deliver above-average returns for our shareholders.