Mr. Alberto Orozco reports

CAPITAN SILVER RECEIVES KEY DRILL PERMIT FOR THE CRUZ DE PLATA PROJECT AND COMMENCES DRILLING ON UNTESTED HIGH-PRIORITY REGIONAL TARGETS

Capitan Silver Corp. has received a key exploration permit at its Cruz de Plata silver-gold project in Durango, Mexico. The new permit allows the company to significantly expand its permitted drill targets along the Jesus Maria silver trend, while also allowing for drill testing of several mineralized structures to the east, northwest and north on the concessions which were recently acquired from Minera Fresnillo S.A. de C.V. (see Capitan news release dated Aug. 22, 2025) and had not been previously drilled.

Highlights:

• Newly granted exploration drill permit allows Capitan to drill beyond previously permitted 2.5-kilometre mineralized strike length at the Jesus Maria silver trend:
  • The company has identified several key untested high-priority targets that outcrop to the east, northwest and north of the Jesus Maria silver trend.
  • Strong potential for the silver-rich mineralization at Jesus Maria to expand significantly and continue around the large intrusive granodiorite to the north.
  • Highlights of grab and chip samples on untested high-priority targets include (see Capitan news release dated Oct. 1, 2025):
    • Casco Norte: 4,291 grams per tonne AgEq (silver equivalent) (62.1 Au (gold), 18.3 g/t Ag (silver), 0.76 per cent Cu (copper));
    • Jesus Maria East: 1,337.5 g/t AgEq (0.74 g/t Au, 1,364 g/t Ag);
    • Jesus Maria Northwest: 2,268.1 AgEq (27.5 g/t Au, 200 g/t Ag, 4.0 per cent Pb (lead), 2.2 per cent Zn (zinc), 0.73 per cent Cu).
• Never-before-drilled targets to test large-scale potential of property and broader system-wide geological thesis:
  • Capitan has identified over 21 km of cumulative mineralized strike length in multiple veins and structures across its different exploration targets.
  • In October, 2025, the Capitan announced a new geological concept for Cruz de Plata as a larger, robust, mineralized silver system (see Capitan news release dated Oct. 1, 2025).
• Reverse-circulation (RC) rig now exclusively dedicated to drilling untested high-priority targets:
  • Capitan is executing a proven RC-focused drilling strategy which allows the company to quickly and cost-effectively identify high-grade mineralization in the new target area.
• Upcoming catalysts:
  • Assays pending for 57 drill holes: 31 core and 26 RC holes, with more arriving weekly;
  • Four rigs actively drilling: three diamond (core) drill rigs and one RC rig.

Alberto Orozco, chief executive officer of Capitan Silver, commented:

"We are very excited to be drilling these prospective, untested high-priority targets at Cruz de Plata. These recently permitted targets allow Capitan to extend its drilling beyond the 2.5 km Jesus Maria silver trend, where we are currently conducting deeper, down-dip drilling. The addition of these targets is significant because it enables the company to test the broader mineralized system and true large-scale potential of the project.

"The RC drilling of these new target areas will follow on the proven exploration method Capitan applied in 2025 to expand the Jesus Maria trend on strike. I believe using RC, which allows us to drill more metres in a shorter period of time and for a considerably lower cost, is the most intelligent and capital-efficient approach to drill test these new targets, as risk is minimized.

"We have entered a very exciting stage in the evaluation of the Cruz de Plata mineral system as we are concurrently testing the full strike length of the system and testing the system at depth in the Jesus Maria silver trend. With four drill rigs now at work on our 60,000-metre drill program, our understanding of the mineral system will evolve very quickly."

Discussion of expanded drill program

In Q4 2025, the company published a new mineral system concept for the Cruz de Plata project containing multiple never-before-drilled targets (see Capitan news release dated Oct. 1, 2025). This new mineral system not only expanded the strike length of the previously identified Jesus Maria high-grade silver trend to the east, northwest and north, but also included several radial structures within the granodiorite unit and a clear concept for additional near-surface targets. These untested high-priority targets are based on surface mapping and prospecting samples and have recently been further refined by the completion of a property-wide, deep-penetrating, mobile MT geophysical survey (see Capitan news release dated May 8, 2026), which has also identified potential new targets at depth.

The Jesus Maria silver trend, which has currently been drilled on a 2.5 km strike length to a maximum depth of 400 m down dip, sits proximal to a contact between a package of carbonaceous siliciclastic sediments and a granodiorite intrusive. This contact has been interpreted through mapping and prospecting, and further refined by the mobile MT survey, to wrap around the western perimeter of the granodiorite intrusive, forming a C-shaped pattern for a total cumulative strike length of over eight kilometres, comprising multiple structures and targets. In addition, when considering identified radial and cross-cutting features including the Penoles fault, Gully fault, El Casco, El Tubo and La providencia structures, the cumulative strike length increases to 21 km.

The new exploration permit received by Capitan allows the company to drill beyond its current 2.5 km strike length to test all the additional targets described above. The company will dedicate its RC rig, already active on site, exclusively to drilling the untested high-priority targets at Cruz de Plata. The company used this approach successfully in its 15,000 m drill program in 2025 to expand mineralization on strike, close to surface, over the Jesus Maria silver trend. This method allows the company to efficiently test multiple high-priority targets; drilling more metres in a shorter time frame with lower costs than it would otherwise test if it were to drill with diamond drilling. Consistent with the strategy used at Jesus Maria silver trend, the company plans to follow up future rc drill success with diamond drilling to define potential new silver mineralized zones while also testing potential at depth.

AgEq grades are reported using the following assumption: metal recovery: Ag 94 per cent, Au 86 per cent, Pb 93.5 per cent, Zn 92 per cent. AgEq considers Ag, Au, Pb and Zn and calculated as follows: AgEq equals Ag g/t plus (80x Au g/t) plus (0.003 multiplied by Pb g/t) plus (0.0037 multiplied by Zn g/t). High grades have not been capped. Capitan Silver field samples are sent to the Bureau Veritas Lab in Durango, Mexico, for prep. Surface exploration samples have been analyzed using the following codes: MA300, four-acid digestion, multielement analysis. Au is analyzed using fire assay (FA430). Overlimit (greater than 200 parts per million Ag) assays utilize method MA370, with gravimetric utilized for any overlimit thereafter. Additional analysis codes from previous operators include: MA250 (50 element, four-acid, ICP finish), AA24 -- Au 30 g fire assay, ICP61 -- Au 30 g fire assay, AQ300 1:1:1 aqua regia multielement. QA/QC (quality assurance/quality control): Capitan Silver maintains a rigorous QA/QC program and inserts multiple standards, blanks and duplicates into the sample stream at regular intervals. Check assays are performed at SGS laboratories in Durango, Mexico. The data presented includes both chip and grab samples. This type of sampling can be selective in nature and may not be representative of the average grade of the mineralized zones, potentially introducing a positive bias.

Qualified person

The scientific and technical information in this news release has been reviewed and approved by Marc Idziszek, PGeo, vice-president, exploration, of Capitan, and a qualified person (with the meaning of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects).

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 approximately 37 per cent of the company's share capital. Capitan Silver is fully financed and actively drilling at its Cruz de Plata silver project.

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