Mr. John Miniotis reports

ABRASILVER EXECUTES DEFINITIVE OPTION & JOINT VENTURE AGREEMENT ON LA COIPITA PROJECT

Abrasilver Resource Corp. has executed a definitive option and joint venture agreement with a subsidiary of Teck Resources Ltd. to explore and develop the La Coipita copper-gold project in San Juan, Argentina. This announcement follows on from the company's news release dated Jan. 2, 2024, which contemplated the transaction.

The agreement grants Teck an option to acquire an 80-per-cent interest in La Coipita by financing cumulative exploration expenditures of $20-million (U.S.) over a five-year period, making staged cash payments to, and an equity placement in Abrasilver totalling $3-million (U.S.) (including an initial mandatory payment of $500,000 (U.S.)), and making up to $6.3-million (U.S.) in optional cash payments in respect of amounts payable to the underlying project vendors. Following an initial transition period during which Abrasilver will support field operations, Teck is expected to act as operator for the duration of the option (as defined herein).

John Miniotis, president and chief executive officer, commented: "We are extremely pleased to be partnering with Teck in order to advance the highly prospective La Coipita project. As the drilling field season is now opening up at site, we expect an active drill campaign to commence shortly, and look forward to keeping all stakeholders updated on the exploration progress."

Key terms of the transaction

Pursuant to the agreement, Teck has an option to acquire an 80-per-cent interest in the project. Teck may exercise the option by:

• Making the following payments to or equity placement in Abrasilver:

1. Initial mandatory cash payment of $500,000 (U.S.);
2. On or before Jan. 31, 2025, a cash payment of $1-million (U.S.) or at Teck's election, subscription for $1-million (U.S.) of common shares of Abrasilver to be priced at the greater of (a) a 25-per-cent premium to the preceding 20-day volume weighted average price of the Abrasilver shares, or (b) 35 cents per Abrasilver share;
3. On or before Jan. 31, 2028, a cash payment of $1.5-million (U.S.).

• Incurring an aggregate of $20-million (U.S.) in exploration expenditures on the project over a five-year period;
• Making up to $6.3-million (U.S.) in optional cash payments in respect of amounts payable to the underlying project vendors.

Upon exercise of the option, the parties will incorporate a company in Argentina (Newco) to become the titleholder of the project. Teck will hold 80 per cent of Newco's outstanding shares, with Abrasilver holding the remaining 20 per cent. Each party will finance its pro rata share of future expenditures on the project through equity contributions to Newco or incur dilution in Newco. If a party's shareholding interest in Newco is diluted below 10 per cent or pursuant to certain other conditions of the agreement, its shareholding interest will be converted to a 1.1-per-cent net smelter returns royalty on the project, of which 0.6 per cent can be bought back by the payor for a cash payment of $3-million (U.S.) at any time.

About Abrasilver Resource Corp.

Abrasilver is an advanced-stage exploration company focused on rapidly advancing its 100-per-cent-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina. The current measured and indicated mineral resource estimate for Diablillos consists of 53.3 million tonnes (Mt) grading 87 grams per tonne (g/t) Ag and 0.79 g/t Au, containing approximately 148 million ounces (Moz) silver and 1.4 Moz gold, with significant further exploration upside potential. In addition, the company has entered into an earn-in option and joint venture agreement with Teck on the La Coipita project, whereby Teck can finance up to $20-million (U.S.) in exploration expenditures and make certain other payments to earn up to an 80-per-cent interest.

We seek Safe Harbor.