Vizsla Silver Corp. (TSX-V: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) is pleased to announce its intention to spin out the shares of Vizsla Royalties Corp., a wholly-owned subsidiary of Vizsla Silver, to the Company’s shareholders. Vizsla Royalties currently holds, indirectly, a net smelter royalty on any potential future mineral production at Vizsla Silver’s flagship, 100% owned Panuco silver-gold project located in Sinaloa, Mexico.

The Royalty consists of: (i) a 2.0% net smelter return royalty on certain unencumbered concessions comprising the Project; and (ii) a 0.5% net smelter return royalty on certain encumbered concessions comprising the Project which have a pre-existing 3.0% net smelter return royalty.

Vizsla Silver is also expected to: (i) transfer to Vizsla Royalties the right to purchase one-half of the 3% Underlying Royalty; (ii) grant Vizsla Royalties the right to acquire a royalty on any future projects acquired by Vizsla Silver in the 24-month period after completion of the Spinout, which right would automatically terminate upon a change of control of Vizsla Royalties or Vizsla Silver and (iii) make a cash injection into Vizsla Royalties.

It is expected that the Spinout will be completed pursuant to a plan of arrangement under the Business Corporations Act (British Columbia). The Spinout would be subject to shareholder, court, stock exchange and regulatory approvals, as well as, at management’s continued discretion. Pursuant to the Spinout, common shares of Vizsla Royalties would be distributed to shareholders of Vizsla Silver. Vizsla Silver is expected to hold approximately a 49% ownership interest in Vizsla Royalties, with the remaining shares of Vizsla Royalties being distributed to shareholders of Vizsla Silver on a pro-rata basis at a time to be determined by the board of directors of Vizsla Silver. There will be no change in shareholders’ holdings in Vizsla Silver as a result of the Spinout.

Subsequent to completion of the Spinout, the board of directors of Vizsla Royalties may decide to pursue a listing on the TSX Venture Exchange if and when the Vizsla Royalties Board determines it is in the best interests of the Vizsla Royalties shareholders. It is expected that, at the time Vizsla Royalties pursues a listing on the TSX Venture Exchange, a majority of the members of its management team and the Vizsla Royalties Board will be independent of Vizsla Silver.

Additional details regarding the Spinout, including the proposed record date, will be provided as they become available. There is no certainty Vizsla Silver will proceed with the Spinout.

Shareholders are invited to contact Vizsla Silver via email at info@vizslasilver.ca for additional information regarding the Spinout.

About the Panuco Project

The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlán. The 7,189.5 hectare, past producing district benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, roads, power, and permits.

The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation.

On January 8, 2024, the Company announced an updated mineral resource estimate for Panuco. The Updated Mineral Resource includes an estimated in-situ indicated mineral resource of 155.8 Moz AgEq and an in-situ inferred resource of 169.6 Moz AgEq. An updated technical report is being prepared on the updated Mineral Resource Estimate in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects and will be available on the Company’s website and SEDAR within 45 days of the date of announcement of the Updated Mineral Resource.

About Vizsla Silver

Vizsla Silver is a Canadian mineral exploration and development company headquartered in Vancouver, BC, focused on advancing its flagship, 100%-owned Panuco silver-gold project located in Sinaloa, Mexico. To date, Vizsla Silver has completed over 350,000 metres of drilling at Panuco leading to the discovery of several new high-grade veins. For 2024, Vizsla Silver is focused on de-risking the resource base located in the western portion of the district ahead of a development decision. Additionally, Vizsla Silver has budgeted +65,000 metres of resource/discovery-based drilling designed to upgrade and expand the Project’s mineral resource, as well as test other high priority targets across the district.

In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects, Martin Dupuis, P.Geo., Chief Operating Officer, is the Qualified Person for the Company and has reviewed and approved the technical and scientific content of this news release.