Mr. Colin Smith reports

FIRST ANDES SILVER TO ACQUIRE SILVER FOCUSED PROPERTIES IN NEW SOUTH WALES, AUSTRALIA

First Andes Silver Ltd. has entered into an asset purchase agreement to acquire three silver-focused exploration licence applications totalling approximately 454 square kilometres in New South Wales, Australia. The concessions, located within the well-mineralized Lachlan orogenic belt, are known as the Carrington project, the Stoney Creek project and the Dartmoor project.

Highlights:

• Three large silver-gold exploration licence applications totalling approximately 454 square kilometres (45,400 hectares) in the highly prospective Lachlan orogen of New South Wales, Australia;
• Portfolio covers an area containing at least 12 historic silver, gold and polymetallic mines and prospects, including multiple high-grade past producers;
• Historical silver and gold grades from surface grab, chip and production samples (see Sentinel Resources Corp.'s news release dated Oct. 13, 2020):
  • 6,037 grams per tonne silver and 85 grams per tonne gold at Carrington;
  • 212 grams per tonne silver and 18 grams per tonne gold at Stoney Creek;
  • Small-scale historic production averaging 980 grams per tonne silver and 12 per cent copper at Dartmoor;
• Multiple complementary deposit styles: iron-rich gold-silver-lead-antimony skarns at Carrington, epithermal and/or orogenic gold-silver vein systems at Stoney Creek, and VHMS-style (volcanic-hosted massive sulphide) mineralization at Dartmoor;
• Transaction structured with modest upfront consideration and staged exploration commitments, aligning with First Andes's capital deployment strategy;
• Provides additional exploration opportunities while continuing to aggressively advance First Andes's flagship Santas Gloria silver project.

Colin Smith, chief executive officer, commented: "We are pleased to be acquiring three highly prospective silver exploration licences in New South Wales, a jurisdiction well known for its silver-rich deposits. The combination of high-grade historic silver and gold results, multiple deposit styles and excellent access to infrastructure provides First Andes with a cost-effective, year-round exploration pipeline that complements our flagship Santas Gloria silver project in Peru. While Santas Gloria remains our primary focus, we see strong potential to generate additional discoveries and shareholder value from the NSW silver projects over time."

Carrington (ELA 6982)

Carrington is a 160-square-kilometre exploration licence application (ELA 6982) covering an iron-rich skarn system with gold-silver-lead-antimony mineralization located in the Lachlan orogenic belt of southeastern New South Wales. Two parallel mineralized structures lie east and west of a sandstone ridge, with the historic Carrington mine developed on the eastern structure and the Iron Duke prospect on the western structure. The prospects are hosted by limestone members of the Jerrara formation and are spatially associated with the regionally significant Yarralaw fault.

Historic mining at Carrington exploited laterally extensive mineralized gossans up to six metres wide. Rock-chip sampling of gossanous material has returned grades of up to 85 g/t Au, 6,037 g/t Ag, 24.8 per cent Pb and 16.8 per cent Sb (see Sentinel Resources' news release dated Oct. 13, 2020). Aeromagnetic data define a strong magnetic corridor that trends south from the Lockyersleigh granite through the Carrington mine and along strike within limestone units of the Jerrara formation, supporting the interpretation of an extensive iron-rich skarn system with more than 10 kilometres of prospective strike length.

Furthermore, the NSW government Minview website states that over 500,000 tonnes of iron gossan is present. This is significant given silver-gold mineralization is commonly associated with gossans developed above primary sulphide mineralization. The tonnage cited suggests a robust system.

Stoney Creek (ELA 6983)

Stoney Creek is a 247-square-kilometre licence application (ELA 6983) situated in the Lachlan orogenic belt, covering a highly prospective corridor of Devonian volcanic rocks. The project hosts at least seven historic silver-gold mines and prospects, including the Stony Creek prospect and the Krawaree underground silver mine, which are classified as orogenic base metal to low-sulphidation epithermal vein systems developed along the westerly dipping Gundillion fault.

The Stony Creek prospect comprises an approximately 85-metre-wide alteration zone hosting quartz-sulphide vein stockworks. Historic rock-chip sampling has returned assays of up to 18.4 g/t Au and 212 g/t Ag, while historic drilling by Canyon Resources Pty. Ltd. in 1986 reported an intercept of five metres grading 3.0 g/t Au.

Gundillions Reef, located approximately 1.4 kilometres northwest of Stony Creek, is defined by a series of shafts, drives and small open pits that have been worked to depths of around 200 metres. Underground workings have been traced for over two kilometres and rock-chip grab samples have returned assays of up to 44 g/t Au and 150 g/t Ag, highlighting the potential for high-grade gold-silver shoots along the Gundillion fault corridor (see Sentinel Resources' news release dated Oct. 13, 2020).

Dartmoor (ELA 6981)

Dartmoor is a 47-square-kilometre exploration licence application (ELA 6981) located at the western margin of the Hill End and Cooma zones in the eastern Lachlan orogenic belt. The tenure includes two historic polymetallic mines, Dartmoor and Dartmoor East, interpreted to be of VHMS-Kuroko affinity. Mineralization is expressed as an extensive gossanous horizon that can be traced for over 1.5 kilometres along strike.

Small-scale historic production at Dartmoor reportedly averaged approximately 980 g/t Ag and 12 per cent Cu, underscoring the high-grade nature of the system (see Sentinel Resources' news release dated Oct. 13, 2020). First Andes views Dartmoor as a compelling target for the discovery of massive gold/silver/base metal sulphide lenses to be explored using a combination of modern EM (electromagnetic) geophysics, geochemistry and drilling.

Terms of transaction

The company entered into an asset purchase agreement with South Star Pty. Ltd. (the vendor), whereby the vendor has agreed to sell all of its interest in the silver projects for $15,500 (Australian) and 1.5 million common shares of the company. The shares will be subject to restrictions on resale for a period of four months from the date of issue. The transaction is subject to acceptance of the TSX Venture Exchange.

Qualified person

Dr. Christopher Wilson, PhD, FAusIMM (CP), FSEG, FGS, a qualified person under National Instrument 43-101, has reviewed and approved the technical information contained in this news release. Dr. Wilson serves as chief geologist of First Andes Silver and is a shareholder of the company.

About First Andes Silver Ltd.

First Andes Silver is a British Columbia company that holds a 100-per-cent interest in the high-grade Santas Gloria silver property, located in a major mining district 55 km east of Lima, Peru. Santas Gloria has excellent established road access, is situated within a well-known intermediate-sulphidation epithermal belt, and hosts over 12 km of multiphase veins mapped at surface that had never been historically drilled or explored by modern techniques before 2024. First Andes's maiden diamond drill program last year reported high-grade silver grades on all drilled vein systems, confirming silver endowment and warranting high-priority follow-up drilling in 2025.

We seek Safe Harbor.