Updated Mineral Resources, Mineral Reserves and Enhanced Project Economics for the Curipamba-El Domo Project, Ecuador

Salazar Resources Limited (TSX-V: SRL) (OTCQB: SRLZF) (FSE: CCG) is pleased to provide an update on the Curipamba-El Domo polymetallic project, located in the Bolívar and Los Ríos provinces of Ecuador. The update is based on an independent NI 43-101 Technical Report prepared by SRK Consulting (China) Ltd. for the Project operator, Silvercorp Metals Inc. with an effective date of December 31, 2025 and issued on May 31, 2026, and includes a comparison with the October 26, 2021 Feasibility Study. Salazar retains a 25% carried interest in the Project, while Silvercorp holds the remaining 75% interest and serves as the operator.

“The new economic analysis in the 2025 Technical Report significantly upgrades our flagship asset, directly benefiting every Salazar Resources shareholder. The new study confirms the quality of the deposit and reflects a meaningful increase in after-tax net present value, while additional mineralized material remains in place with the potential to further extend the mine’s operating life. This is positive news for Salazar, our loyal shareholders, the local communities and all stakeholders. With construction on track, and first production expected in 2027, El Domo is transitioning from study to cash generation. Through our fully carried 25% interest, shareholders gain exposure to a producing copper-gold asset without further development funding, positioning the Company for a durable future cash flow stream.”

— Fredy Salazar, CEO, Salazar Resources

Key Highlights

Mineral Resource:

• Measured + Indicated (M+I) Mineral Resources increased by 27%, from 9 Mt to 11.4 Mt, grading 1.85% Cu, 2.11 g/t Au, 2.42% Zn, 0.22% Pb, and 41.69 g/t Ag.
• Inferred Mineral Resources increased by 245%, from 1.1 Mt to 3.8 Mt, grading 0.46% Cu, 0.97% Zn, 0.13% Pb, 0.80 g/t Au, and 28.49 g/t Ag.

El Domo Project Mineral Reserves:

• Mineral Reserves (Proven + Probable): 7.13 Mt, an increase of 10% compared to the 6.48 Mt reserves reported in the 2025 Technical Report.
• The metal content of the reserves increased by 10% for copper (137.7 kt), 11% for gold (584 koz), 16% for zinc (187.7 kt), 14% for lead (18.4 kt), and 15% for silver (11.0 Moz).

Update on the Analysis of Economic Data for the El Domo Project:

• After-Tax NPV (8% discount rate) is US$573 million, representing a 121% increase compared to the October 2021 Feasibility Study. After-Tax NPV (5% discount rate), is US$ 705.6 million according to the updated economic analysis.
• Construction of El Domo is fully funded, and production of the first commercial concentrates is expected to begin in mid-2027.
• The El Domo Project is currently under construction, with a mine life of 13 years processing 666,000 metric tons of mineralized material per year. This mine life includes the approximately 1.5 years of mine construction.
• Salazar’s 25% interest is fully carried through to commercial production, with no additional development or construction financing obligations.

Project Overview

SRK Consulting (China) Ltd. an independent consulting firm, was engaged by Silvercorp Metals Inc. to prepare an update to the Mineral Resource estimate and the Feasibility Study published on October 26, 2021, for the El Domo polymetallic project, located in Las Naves Canton, Bolívar Province, Ecuador. SRK commenced work in November 2025 and delivered the independent Technical Report in May 2026.

For the Curipamba-El Domo Project, Salazar holds a 25% interest, while Silvercorp holds the remaining 75% interest and is the operator.

Updated Mineral Resource Estimate as of December 31, 2025

The current Mineral Resource estimate is based on information obtained from 427 diamond drill holes, totaling 79,357 metres, completed between 2007 and 2024. This updated Mineral Resource estimate (since the latest NI 43-101 Technical Report dated October 26, 2021) includes 28 additional infill drill holes completed within the open pit and underground areas, as well as 8 drill holes completed for metallurgical testing.

Measured + Indicated (M+I) Mineral Resources total 11.4 Mt, grading 1.85% Cu, 0.22% Pb, 2.42% Zn, 2.11 g/t Au, and 41.69 g/t Ag (containing 211.6 kt Cu, 25.2 kt Pb, 275.9 kt Zn, 775 koz Au, and 15.3 Moz Ag). In addition, Inferred Mineral Resources total 3.8 Mt, grading 0.46% Cu, 0.13% Pb, 0.97% Zn, 0.80 g/t Au, and 28.49 g/t Ag (containing 17.6 kt Cu, 5.0 kt Pb, 37.1 kt Zn, 98.0 koz Au, and 3.5 Moz Ag).

See Table 1 for a full summary of Mineral Resource Statement for El Domo Project, as of December 31, 2025.

Table 1. Mineral Resource Statement for El Domo Project, as of December 31, 2025

 Notes:

1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are reported above an NSR cut-off value of US$38/t for potential open pit Mineral Resources, and the underground portion are reported using an NSR cut-off value of US$100/t NSR.
3. The NSR value is based on estimated processing recoveries, assumed metal prices, and smelter terms, which include payable factors treatment charges, penalties, and refining charges：84.9 *[Cu] (%) +46.9*[Au] (g/t) + 0.6*[Ag] (g/t) + 3.4 *[Pb] (%) + 19.8*[Zn] (%)
4. Mineral Resources are estimated using the metal price assumptions: USD 10,700/t Cu, USD 3,000/ oz Au, USD40/oz Ag, USD 2,300/t Pb, and USD3,220/t Zn.
5. Mineral Resources are inclusive of Mineral Reserves.
6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
7. Numbers may not add due to rounding.

See Table 2 and 3 for a comparison of Mineral Resource tonnage, grades, and contained metal between the 2021 FS published in October 2021 and 2025 Technical Report in December 2025.

Table 2. Comparison of Measured + Indicated (M+I) Mineral Resources, October 2021 (2021 FS) and December 2025 (2025 Technical Report)

Table 3. Comparison of Inferred Mineral Resources, October 2021 (2021 FS) and December 2025 (2025 Technical Report)

While reported grades for the Mineral Resources are lower than in the 2021 FS, total contained metal increased across all payable metals. The change in grade primarily reflects: (i) a higher open-pit NSR cut-off value (US$38/t versus US$29/t in 2021); (ii) materially higher metal price assumptions, which brought additional lower-grade material into the resource envelope; and (iii) the incorporation, at higher metal prices, of material previously modelled as a separate underground resource into the open-pit envelope. Grades for the Mineral Reserves are unchanged to slightly higher than in the 2021 FS.

Mineral Reserve Statement for El Domo Project (Open Pit) as of December 31, 2025

Above a cut-off value of US$55/t, there are 7.13 Mt of Proven and Probable Mineral Reserves at an average NSR grade of US$312/t.

Proven and Probable Mineral Reserves total 7.13 Mt, grading 2.55 g/t Au, 47.82 g/t Ag, 1.93% Cu, 0.26% Pb, and 2.63% Zn, containing 584 koz Au (+11%), 11.0 Moz Ag (+15%), 137.7 kt Cu (+10%), 18.4 kt Pb (+14%), and 187.7 kt Zn (+16%).

Note: The percentages shown in parentheses represent the increase in Mineral Reserves and contained metal relative to the Feasibility Study dated October 26, 2021.

See Table 4 for Mineral Reserve Statement For El Domo Project, as of December 31, 2025.

Table 4. Mineral Reserve Statement For El Domo Project, as of December 31, 2025

 Sources: El Domo Project, SRK summarized

Notes:

1. Any differences between totals and sum of components are due to rounding.
2. A Cut-off Value (COV) of 55 USD/t was applied.
3. The COV estimates are based on the forecast prices 2,600USD/oz gold, 31 USD/oz silver, 9,250 USD/t copper， 2,000 USD/t lead, and 2,800 USD/t zinc.
4. The Mineral Reserves are reported on a metric dry tonne basis.
5. Mineral Resources are inclusive of Mineral Reserves.
6. The Mineral Resources are effective as of December 31, 2025.

See Table 5 for a comparison of Mineral Reserve tonnage, grades, and contained metal between the October 2021 Feasibility Study and the December 2025 update.

Table 5. Comparison of Minerals Reserves, October 2021 (2021 FS) and December 2025 (2025 Technical Report)

Update on the Analysis of Economic Data for the El Domo Project, as of December 31, 2025

The cash flow estimate includes only the revenue, costs, taxes, and other factors directly associated with El Domo Project. The assumptions are as follows:

The ROM (run-of-mine) and final products of El Domo Project, which are lead, zinc, and copper concentrates, are based on the LOM schedule.

The local currency for El Domo Project is USD and is used for technical-economic analysis.

The effective date is December 31, 2025.

The technical-economic analysis was conducted using conventional Discounted Cash Flow techniques. The projection for Project operation shows a positive economic prospect. At a discount rate of 8%, the NPV of the Project is USD 573 million. The net present values at different discount rates were estimated by SRK through DCF model, presented in Table 6.

The economic analysis was conducted for 7.13 Mt, classified as reserves at the El Domo open-pit mine, see in Table 7. An additional approx. 8 million tonnes of mineralized material remain within the Measured & Indicated and Inferred Mineral Resource categories, representing meaningful upside potential to extend mine life and increase future production as these resources advance toward Reserve classification.

Table 6. Estimated NPVs at Different Discount Rate, NPV in US$ millions

Table 7. Analysis of Economic Data for the El Domo Project

Prices Assumed, DRA, October 26, 2021: US$1,700 Oz of Gold, US$23 Oz of Silver, 7,716 US$/t copper (US$3.5 /lb), US$0.95 /lb of lead, US$1.20 /lb of zinc

Prices Assumed, SRK, December 31, 2025: US$2,600 Oz of Gold, US$31 Oz of Silver, 9,250 US$/t copper, 2,000 US$/t lead, 2,800 US$/t zinc

Next Steps

In accordance with National Instrument 43-101, the Company will file a technical report prepared for and addressed to Salazar, supporting the disclosure in this news release, under its profile on SEDAR+ (www.sedarplus.ca) within 45 days of the date of this news release. The report will also be made available on the Company’s website at www.salazarresources.com.

Qualified Person

The scientific and technical information contained in this news release is derived from the 2025 Technical Report entitled “Technical Report on the Curipamba-El Domo Polymetallic Project, in Ecuador”, prepared by SRK Consulting (China) Ltd. for Silvercorp Metals Inc., with an effective date of December 31, 2025. The independent Qualified Persons for the 2025 Technical Report include Ms. Yanfang Zhao (MAIG), responsible for the Mineral Resource estimate, and Mr. Falong Hu (FAusIMM), responsible for the Mineral Reserve estimate. The estimates have been classified in accordance with the 2014 CIM Definition Standards. The 2021 comparative figures are derived from the Feasibility Study dated October 26, 2021 (the “2021 Technical Report”). Dorota El-Rassi, M.Sc., P.Eng, was responsible for the Mineral Resource estimate in the 2021 Technical Report and Daniel M. Gagnon, P.Eng was responsible for the Mineral Reserve estimate in the 2021 Technical Report.

Mr. Falong Hu (FAusIMM), a qualified person under NI 43-101 who is independent of Salazar, has reviewed and approved the scientific and technical disclosure in this news release,

References

¹DRA (2021). NI 43-101 Technical Report – Feasibility Study Curipamba-El Domo Project

²News Release (2021). Adventus and Salazar announce Feasibility Study Results and Updated Mineral Resources for the Curipamba Copper-Gold Project

³SRK Consulting China Ltd. (2026). Technical Report on Curipamba-El Domo Polymetallic Project, in Ecuador.

About Salazar Resources

Salazar Resources Limited is focused on creating value and driving positive change through mineral discovery, exploration, and development in Ecuador. The Company holds a 25% carried interest in the Curipamba-El Domo Project, together with a portfolio of 100%-owned copper-gold exploration projects in Ecuador and carried interests in additional projects.