Agreement Provides Significant Upside Participation for Kuya Silver

5000 m drill program planned for June

Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (Frankfurt: 6MR1) is pleased to announce that it has completed a joint venture agreement with Sumou Holding Company, the majority shareholder of Silver for Mining LLC which holds the 246-square-kilometre Umm Hadid exploration license in the Kingdom of Saudia Arabia.

Kuya Silver will maintain an active role in the management of the project providing technical and strategic expertise alongside its partners, Sumou, as well as the consultants and employees of Silver LLC. The joint venture agreement awards Kuya Silver a significant interest in the project in two parts: an immediate 5% non-dilutable (or carried) interest over the initial five-year work program, and a strategic option to acquire an additional 40% participating interest, for a total bring its potential ownership to 45%.

Firstly, Kuya Silver will maintain a 5% carried, non-dilutable interest in the joint venture company during the initial work program phase of the project, which correlates to the 5-year work program committed in the making the winning bid awarded in January 2024 (see Kuya Silver Press Release, February 15, 2024). It is estimated to entail approximately USD $20 million in exploration expenditures over five years from the granting of the licenses (i.e. June 2029), including expenditures made to date.

Secondly, Kuya Silver retains a back in right, up until April 2027, to acquire an additional 40% of Silver LLC, by reimbursing 40% of the expenditures made up to that point in time, to hold a total 45% interest in the project. From that point that the back-in right is exercised, the additional interest (ie. 40%) will be participating and subject to dilution as additional expenditures are made, while the original 5% interest remains protected from dilution until the initial work program period is completed.

David Lewis, P. Geo, Kuya Silver’s VP Exploration, remarked, “I have had the pleasure of a site visit to the Umm Hadid property over the last few weeks to follow up on our now fully realized joint venture. The timing of this visit was especially fortunate, as we hosted a delegation of the Saudi Geological Survey, including the Deputy Minister of the Ministry of Industry and Natural Resources to the project area. We have completed two remote sensing surveys of the property to-date, including a satellite-based hyperspectral survey (to identify mineral distribution) and a ground-based detailed magnetic survey (to identify rock types and structures). The property hosts a cluster of historic veins near some of these magnetic anomaly targets, and we have now identified several new veins, up to 1 m wide in 4 m wide zones and traceable for 600 m, in some of the other targets. We expect to be drilling a first-pass, 5,000 m drill program testing many of these targets starting in June, and I am looking forward to these results.”

National Instrument 43-101 Disclosure 

The technical content of this news release has been reviewed and approved by David Lewis, M.Sc., P.Geo., Vice President Exploration with Kuya Silver Corp. and a Qualified Person as defined by National Instrument 43-101.

About Kuya Silver Corporation

Kuya Silver is a Canadian‐based, growth-oriented mining company with a focus on silver. Kuya Silver operates the Bethania silver mine in Peru, while developing district-scale silver projects in mining-friendly jurisdictions including Peru and Canada.