Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) is pleased to provide an operational update for the third quarter of 2026 at the Bethania silver project. During this quarter, the Company made the decision to prioritize mine development over near-term production to prepare for the planned expansion of underground throughput in the coming months and quarters. Significant progress was made during the quarter toward achieving this objective.

Operational Highlights

• Infrastructure Improvements: A higher-horsepower winch system, scheduled for commissioning in the coming weeks, is expected to increase underground haulage capacity and support the Company’s targeted mining rate of 350 tonnes per day (tpd), without requiring completion of the previously announced ramp project. A redesigned ramp project, as outlined in this release, is expected to improve access to additional mineralized material and support potential future expansion beyond 350 tpd.
• Record Underground Development: Advanced 575 metres underground and excavated 4,713 tonnes of development material during Q3, establishing additional working areas to support increased mining rates.
• Q3 Production: Mined 3,401 tonnes of mineralized material while prioritizing underground development. Processed 12,179 ounces of silver (16,055 silver-equivalent ounces), generating approximately US$1.3 million in revenue.
• Española Vein Development: Encountered a new mineralized zone up to 1.1 metres wide. An initial 372-tonne blended processing batch containing material from this zone, processed in October, averaged 10 oz/t silver and achieved 91% silver recovery.
• Exploration Drilling: Restarted drilling in late September as part of the Company’s 20,000-metre exploration program.
• Carmelitas Exploration: Signed a surface rights agreement with the Poroche community for exploration of the Carmelitas vein system.

David Stein, Kuya Silver’s President and CEO, stated, “Our mine development operations really started to hit their stride in Q3 and continuing into October with record levels of underground development positioning the operation for significant growth in mining rates. Since June 30, 2026, we have successfully added to our head count at the Bethania operations by approximately 20%. As our team grows we are seeing better productivity and operational efficiency allowing Kuya Silver to advance in the development of the Bethania project on multiple fronts. With a strong cash position and our 20,000-metre drill program now underway, Kuya Silver is now in an excellent position to demonstrate the scale of the Bethania silver project over the next few years.”

Kuya Silver Accelerates Mine Development in Q3

Production of mineralized material at the Bethania Project totaled 3,401 metric tonnes in the quarter, a reduction from Q2 2026 but slightly higher production than Q1 2026. During the quarter, the Company made the decision to reduce output in the short term to prioritize mine development to prepare the necessary working areas for a more significant production increase in Q4 2026 and in 2027. The Company’s production guidance remains unchanged.

Silver recoveries improved to 83.3% during Q3 2026 up from 79.7% in Q2 2026, despite processing lower grade material. During the quarter, the Company worked with its processing partners at the Camila plant to further optimize silver recoveries while processing lower-grade development material averaging 5.4 oz/t silver (approximately 168 g/t Ag) and 8.5 oz/t silver equivalent (265 g/t AgEq). Kuya Silver has previously achieved silver recoveries exceeding 90% when processing higher-grade batches. The Company expects recoveries to continue improving toward these levels as mining and processing operations continue to ramp up.

Figure 1: Q3 2026 Production Summary and Operational Highlights
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^{Figure 1: Production highlights from the Bethania silver mine}

1. Amounts previously disclosed were revised from 398m to 185m in Q1 2026 and from 437m to 280m in Q2 2026 due to changes in measurement methodology.
2. Information has been revised from amounts previously disclosed in the Company’s press release dated April 22, 2026. The revisions relate primarily to the correction of previously reported production metrics.
3. prices for silver equivalent calculations use period ending spot prices and are as follow: Sept. 30, 2026 $61/oz, lead $1,847/tonne, zinc $3,818/tonne June 30, 2026 $61/oz, lead $1,877/tonne, zinc $3,552/tonne. Mar. 31 2026 silver $74/oz, lead $1,909/tonne, zinc $3,230/tonne. Sept. 30, 2025 $46/oz, lead $1,964/tonne, zinc $2,938/tonne June 30, 2025 $36/oz, lead $2,205/tonne, zinc$2,764/tonne Mar. 31 2026 silver $74/oz, lead $1,909/tonne Mar. 31, 2025 period; silver $34/oz, gold $3122.80/oz, lead $2,002/tonne, zinc $2,829/tonne.
4. includes only payable recovery i.e. lead in the silver- lead concentrate and zinc in the zinc concentrate and silver in both concentrates.
5. may include provisional settlements at the end of the period, net of treatment and refining costs.

Underground Infrastructure Improvements Support Pathway to 350 TPD and Future Expansion

The Company has advanced improvements to its existing underground haulage infrastructure that are expected to provide a more immediate pathway to achieving its targeted mining rate of 350 tpd. While the development of a new ramp was originally intended to address underground haulage constraints, upgrades to the existing winch system are now expected to provide the additional material handling capacity required to support this production target without requiring completion of the ramp project.

A higher-horsepower winch system is scheduled for commissioning in the coming weeks. In parallel, the Company has approved a significant redesign of the planned ramp to improve access to additional mineralized material and facilitate development of the eastern extensions of the Bethania vein system. The revised design is intended to provide more efficient access to new mining areas, increase operational flexibility and create opportunities to develop additional production zones as underground operations expand. This revised ramp design delivers several advantages: opens up access to the Hilltop zone where a number of mineralized silver veins have been identified at surface, sets up the operation to better leverage the mineral potential east of the current mine workings which is likely to be a significant part of future mining activities, is expected to improve ventilation and improve the operational efficiency by reducing potential traffic congestion on the steeper western slope of the mine area. With the upgraded winch system expected to support the initial 350 tpd target, the redesigned ramp will serve as an important component of the Company’s longer-term development strategy, supporting potential production growth beyond 350 tpd.

Figure 2: Bethania mine with silver veins projected to surface showing key infrastructure including existing and newly planned portal and preliminary ramp development.

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Kuya Silver Encounters Wider Zone as it Develops the Española Vein

During the quarter, the Company achieved record underground development of 575 metres and extracted 4,713 tonnes of development material. Development on Level 640 in the eastern portion of the Española vein exposed a segment measuring 93 metres in length, with an average true width of 0.82 metres to date and up to a true width of 1.1 metres.

An initial batch of 372 dry tonnes of mineralized material, including material from this shoot blended with other development material from the 12 de Mayo vein was processed in early October and reported an average silver grade of 10 oz/t (311 g/t), with minor lead and zinc, this batch resulted in an average silver recovery of 91% (Note that these results represent actual processing results from the Camila plant over a 3-day period in October rather than geochemical test results). While this batch is not necessarily representative of the overall mining operation, management interprets this occurrence as a positive indication for production upside in the short term and strengthens the case that the Española vein continues along strike to the east and to depth, beyond the limits of the previous drill program completed in 2021. This immediate area within the Española vein system is being prepared for potential production later in Q4 2026 and early 2027.

Separately, a north-south crosscut has been developed on the 640 level to access multiple working fronts associated with the 12 de Mayo vein, allowing for a second production area within the mine. Development for this southern area provided the first-ever underground access to the Carmen vein, discovered in 2022 and not included in the Project’s most recent mineral resource estimate. The Company is awaiting geochemical sampling from underground, but surface sampling of this vein reported high gold grades (see news release, January 26, 2022) and low base metals, an atypical mineralization profile compared to the conventional silver-polymetallic mineralization of the Bethania system. Given current gold prices, even modest gold grades at Carmen could have a meaningful impact on the broader economic potential of the Bethania Project. Further underground sampling and drilling are required to assess the grade and continuity of gold-silver mineralization at the Carmen vein.

Diamond Drill Program Underway

The Company is pleased to announce that the first drill rig for the previously announced 20,000-metre diamond drilling program has been operating underground since late September. Kuya Silver plans to mobilize two additional underground drill rigs in the next month before commencing surface drilling (which is expected to allow for faster drilling rates). The entire program is expected to be completed by the second quarter of 2027, and Kuya Silver is planning regular updates as assay results become available. The first underground rig is focused on testing the depth extension of the Española vein system and other veins in the northern section of the mine area, while the second underground rig is being positioned to test the depth extensions of the 12 de Mayo, Victoria, Carmen and other veins in the southern section of the mine. The third underground rig will target the eastern extension of the vein system towards the Hilltop zone and the new portal area.

Quality Assurance and Quality Control

Quality assurance and quality control include two sampling procedures. Underground vein material from stopes is sampled to confirm vein grades and to reconcile against the mine model; and sampling of freshly mined material in stockpiles to determine dilution and the head grade that is sent to the processing plant.

Underground vein sampling was conducted systematically every 4 meters along the galleries. This involved excavating a narrow and continuous channel either parallel to the vein or perpendicular to its orientation. The entire volume of material excavated from the channel was collected as a sample.

Freshly mined material in the stockpiles and concentrate stockpiles were sampled using trenching, a method involving the excavation of narrow trenches perpendicular to the major axis of the pile. Trenches were systematically dug at regular intervals across all depths of the pile. The location of each trench was referenced to a topographic control point and recorded in the sampling log.

All material was carefully collected on plastic sheets, then pulverized at the mine site. The pulverized material was quartered, and one quarter was labeled and secured in vinyl sample bags. The samples were then transported to Dmtri I. Mendelejeff laboratory in Huancayo for processing using fire assay followed by atomic absorption spectroscopy.

All concentrate assay results are cross-checked against independent analyses conducted by the buyer. Furthermore, sample security protocols include sealed trucks for transporting run-of-mine material and concentrate trucks with tamper-proof devices with safety seals, and a documented chain of custody chain overseen by the mine superintendent (Bethania).

Clarification

Further to its news release dated October 19, 2026, the Company clarifies that the exercise price of the 525,000 stock options granted on that date is $0.52, rather than the previously disclosed $0.50, with all other terms of the grant remaining unchanged.

National Instrument 43-101 Disclosure

The geological interpretations and exploration program information contained in the Diamond Drill Program Underway section have been reviewed and approved by Osbaldo Zamora, P.Geo., Vice President of Exploration of Kuya Silver and a Qualified Person as defined by NI 43-101. The technical information concerning mining operations, production and metallurgy has been reviewed and approved by Kevin J. O’Connell, P.E., a consultant to Kuya Silver and a Qualified Person as defined by NI 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.