Mr. Colin Smith reports

FIRST ANDES SILVER CLOSES OVERSUBSCRIBED $2 MILLION PRIVATE PLACEMENT FINANCING

First Andes Silver Ltd. has closed its previously announced private placement financing (see news release dated Jan. 21, 2026). The company has increased the size of the offering and issued a total of 16,708,331 common shares at a price of 12 cents per common share for aggregate gross proceeds of $2,004,999.72 under the offering.

The common shares issued under the offering are not subject to a hold period in Canada as the common shares were offered pursuant to the listed issuer financing exemption under Section 5A.2 of National Instrument 45-106, Prospectus Exemptions, as amended by Coordinated Blanket Order 45-935, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption.

In connection with the offering, the company paid finders' a fee in cash totalling $120,790 and issued a total of 1,001,583 share purchase warrants as permitted under the rules of the TSX Venture Exchange. Each finder warrant will be exercisable at a price of 12 cents per share for a period of two years from the date of issue.

The net proceeds of the offering will be used on: (i) an augmented Q2 2026 drilling program at the Santas Gloria property; (ii) exploration work the Santas Gloria property; (iii) annual mineral claim payments in Peru; and (iv) general working capital purposes.

Ian Stalker, the company's executive chairman and a director of the company, subscribed for 1,041,667 common shares, contributing $125,000 to the offering. This participation constitutes a related party transaction as defined under Multilateral Instrument 61-101. However, the company expects to be exempt from formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(a) of MI 61-101 as his participation does not exceed 25 per cent of the company's market capitalization.

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 kilometres 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 kilometres of multiphase veins mapped at surface that had never been historically drilled or explored by modern techniques prior to 2024. In only two phases of diamond drilling (2024 to 2025), First Andes has reported strong near-surface epithermal silver intercepts in 21 of 26 drill holes, confirming silver mineralization across multiple vein systems and supporting systematic, project-wide exploration and follow-up drilling in 2026.

We seek Safe Harbor.