Mr. Alberto Orozco reports

CAPITAN SILVER ANNOUNCES $20 MILLION BOUGHT DEAL FINANCING

Capitan Silver Corp. has entered into an agreement with Stifel Canada, pursuant to which Stifel Canada will act as sole bookrunner and lead underwriter, together with a syndicate of underwriters, in connection with a bought deal private placement offering of 9,855,000 common shares of the company at a price of $2.03 per common share for aggregate gross proceeds of $20,005,650, with the common shares to be offered and sold pursuant to the listed issuer financing exemption (as defined below).

The company has granted the underwriters an option to purchase (or arrange for substituted purchasers to purchase) up to an additional 1,478,250 common shares at the issue price on the same terms and conditions as the offering. The underwriters' option will be exercisable, in whole or in part, at any time up until 48 hours prior to the closing of the offering.

The net proceeds of the offering shall be used to finance exploration activities at the company's Cruz de Plata gold-silver project and for working capital and general corporate purposes, as is more fully described in the offering document (as defined herein).

The offering is expected to close on or about Dec. 17, 2025, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the acceptance of the TSX Venture Exchange.

A cash commission equal to 6 per cent of the gross proceeds of the offering shall be paid to the underwriters.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106, Prospectus Exemptions, the common shares will be offered for sale to purchasers resident in each of the provinces of Canada, except Quebec, pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption. As the offering is being completed pursuant to the listed issuer financing exemption, the common shares issued pursuant to the offering will not be subject to a statutory hold period pursuant to applicable Canadian securities laws. The common shares may also be offered in the United States or to, or for the account or benefit of, U.S. persons, by way of private placement pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended, and in jurisdictions outside of Canada and the United States on a private placement or equivalent basis, in each case in accordance with all applicable laws, provided that no prospectus, registration statement or other similar document is required to be filed in such jurisdiction.

There is an offering document related to the offering that can be accessed under the company's issuer profile on SEDAR+ and on the company's website. Prospective investors should read the offering document before making an investment decision.

About Capitan Silver Corp.

Capitan Silver is defining a new high-grade silver system at its Cruz de Plata project, located in the heart of Mexico's primary silver belt. The company is led by a proven and accomplished management team that has previously advanced three projects into production, on time and on budget. The company has been diligent in maintaining a tight share structure and has one of the tightest share structures among its peer group, with the top three shareholders owning over 38 per cent of the company's share capital. Capitan Silver is fully financed and actively drilling at its Cruz de Plata silver project.

We seek Safe Harbor.