Mr. John Miniotis reports

ABRASILVER ANNOUNCES C$20 MILLION IN STRATEGIC INVESTMENTS BY KINROSS GOLD AND CENTRAL PUERTO AND FORMATION OF A REGIONAL PARTNERSHIP IN ARGENTINA

Abrasilver Resource Corp. has entered into subscription agreements in respect of a strategic $20-million non-brokered private placement of Abrasilver common shares with Kinross Gold Corp. and an affiliate of Central Puerto SA at a subscription price of 40 cents per common share.

Highlights:

• Each of Kinross and Central Puerto has entered into a subscription agreement with Abrasilver, pursuant to which they will each invest $10-million, resulting in aggregate gross proceeds of $20-million to the company.
• The company will issue an aggregate of 50 million common shares at a subscription price of 40 cents per common share, representing approximately a 3-per-cent premium to the closing price of the common shares on April 19, 2024.
• Upon closing of the private placement, Kinross and Central Puerto will each own approximately 4.0 per cent of the outstanding common shares on an undiluted basis.
• Following completion of the private placement, the company plans to consolidate its common shares, on the basis of one postconsolidation common share for every five preconsolidation common shares.
• Upon closing of the private placement, Abrasilver will enter into an investor rights agreement with each of Kinross and Central Puerto that includes, among other things, standard anti-dilution and equity participation rights and the formation of a technical advisory committee and a strategic and operational committee.
• Pursuant to the terms of the investor rights agreement with Kinross, Abrasilver and Kinross will form a regional partnership to jointly explore for and acquire new projects in Argentina focused on silver, gold and copper.

John Miniotis, president and chief executive officer of Abrasilver, commented: "We are very excited to welcome both Kinross and Central Puerto as important strategic shareholders and partners. Through this transaction, Abrasilver is well funded for a dual strategy to aggressively advance the Diablillos project towards a production decision and to accelerate our exploration efforts. The company also gains access to the deep technical expertise in mineral exploration, mine development and power generation. We look forward to working closely with our new partners as we embark upon the next stages of successfully advancing the development of our high-quality Diablillos silver-gold project."

Rob Bruggeman, chairman of Abrasilver, commented: "The strategic investments by Kinross and Central Puerto represent a strong endorsement of the Diablillos project and our technical team. The exploration team has successfully grown mineral resources and reserves at the Diablillos project, and we look forward to unlocking additional value at Diablillos and, potentially, other projects in Argentina. We look ahead to leveraging the relationships with Kinross and Central Puerto as we continue to grow the company."

All common shares issued in the private placement will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws. Closing of the private placement is expected to occur on or about April 26, 2024, and is subject to certain conditions, including, but not limited to, approval by the TSX Venture Exchange.

The company will use the proceeds of the private placement for exploration and development of the company's flagship Diablillos project in Salta Province, Argentina, and for working capital and general corporate purposes.

Central Puerto is the largest private-sector power generation company in Argentina, with a record of more than 100 years in the energy industry.

Investor rights agreement

Upon closing of the private placement, Abrasilver will enter into separate investor rights agreements, with each of Kinross and Central Puerto, which provide, among other things, the grant of standard anti-dilution and equity participation rights.

The investor rights agreement will also provide for the formation of a five-person technical advisory committee comprising two members from Abrasilver, two members from Kinross and one member from Central Puerto. The technical advisory committee will provide advice and guidance on the coming phase IV exploration campaign and the future development plans for Diablillos. Separately, a strategic and operational committee will be formed, comprising two members from Abrasilver and two members from Central Puerto. The strategic and operational committee will provide advice and guidance on strategic, operational, financial, tax, infrastructure, government and regulatory affairs, among others matters.

Formation of regional partnership with Kinross in Argentina

Abrasilver and Kinross aim to form a regional partnership to jointly explore for and acquire new projects in Argentina focused on silver, gold and copper. Upon closing of the private placement, Abrasilver will grant Kinross a right of first offer (ROFO) to acquire at least 50 per cent of newly staked or acquired projects in Argentina beyond Diablillos. For any projects which Kinross elects to exercise its ROFO, Kinross and Abrasilver will establish an exploration program and budget and enter into a joint venture agreement with standard financing and dilution mechanisms.

Share consolidation

Following completion of the private placement, the company is expected to complete a consolidation of its common shares, subject to TSX-V approval, on the basis of one postconsolidation common share for every five preconsolidation common shares. The company's common shares will commence trading on a postconsolidated basis on a date to be determined in consultation with the TSX-V, which date will be announced in a subsequent news release once confirmed. The company's name and trading symbols will remain unchanged.

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 proven and probable mineral reserve estimate for Diablillos consists of 42.3 million tonnes grading 91 grams per tonne silver and 0.81 gram per tonne gold, containing approximately 124 million ounces silver and 1.1 million ounces 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. Abrasilver is listed on the TSX-V under the symbol ABRA and in the United States on the OTCQX under the symbol ABBRF.

We seek Safe Harbor.