Mr. Daniel Earle reports

HIGHLANDER SILVER PROVIDES UPDATE; DRILLING COMMENCES AT CORANI SILVER PROJECT

Highlander Silver Corp. has provided a portfolio update following the successful completion of its combination with Bear Creek Mining (see press release dated Feb. 26, 2026).

Daniel Earle, president and chief executive officer of Highlander Silver, commented: "Highlander Silver is well positioned to fast track project advancement across its portfolio of high-quality silver assets. This includes a focus on high-impact exploration, project optimization and site preparation for development of Corani, the largest fully permitted primary silver project in the world, as well as permitting at San Luis, one of the highest M&I resource grade projects in both the gold and silver sectors.

"As of March 31, the company had an unaudited cash balance of approximately $100-million (U.S.) and no debt. The Mercedes gold-silver mine also made a positive cash contribution in its first month of operations following restructuring under our stewardship. We provide a summary of our baseline plans below and forecast a year-end cash balance of approximately $60-million (U.S.). This reflects a disciplined approach to spending that delivers on our core objectives while preserving flexibility to scale up our exploration programs later in the year."

Corani silver project -- Puno, Peru

Personnel

• Carlos Ojeda appointed vice-president and general manager -- Mr. Ojeda has held increasingly senior roles leading teams of up to 500 people in engineering, construction, ramp-up and optimization at Anglo American's major Quellaveco open pit mine in Peru, with prior experience at other major open pit mines in the country, including Antamina, Mina Justa and Constancia.

Exploration

The company will provide a standalone exploration update later this quarter that includes early results from the exploration programs listed below:

• First-ever airborne magnetic survey totalling 620 line kilometres, covering the majority of the land package completed;
• Fifty-four km of planned 60 km induced polarization survey completed, with program expanded to 96 km to cover additional potential extensions interpreted from results;
• First exploration drilling program in over a decade is now under way with the first of four planned rigs targeting high-impact exploration, resource growth, infill and oxide drilling, as well as technical drilling to support optimization studies.

Site preparation and derisking

• Earthworks for internal roads and platforms commenced;
• Camp and facility improvements under way;
• Long-lead-time equipment orders will be placed in late Q2 2026;
• Substation construction under way, with powerline to commence in late Q2 2026;
• Access road rehabilitation under way, with new road construction to commence in late Q2 2026.

Studies, consultants and contractors

• Updated feasibility study based on staged-development approach completed by the end of Q3 2026 aiming to maximize returns on a per-share basis while mitigating capital expenditure, funding, timeline and execution risks.
• Respected international and specialist -- Peruvian consultants and contractors appointed for the majority of the main work packages, with further appointments to follow:
  • Resource, reserves and mine planning -- MINSYS Mining Systems;
  • Processing plant and infrastructure -- Ausenco Engineering;
  • Contractors -- ApuCorp, Xplomine and CumbrEx.

Mercedes gold-silver mine -- Sonora, Mexico

Personnel

• Orlando Chumpitaz appointed vice-president and general manager -- Mr. Chumpitaz has held senior roles with leading companies operating major underground mines globally, including senior mine manager for Lundin Gold at its 5,000-tonne-per-day Fruta del Norte gold mine in Ecuador, project manager for Endeavour Mining at its 6,000 tpd Mana mine in Burkina Faso, general manager for Minera Volcan at its 5,500 tpd Animon mine in Peru and operations director for Fortuna Mining at its 3,000 tpd San Jose mine in Mexico.

Restructuring

• Extinguished excessive gold stream and settled debt such that the company expects the Mercedes mine to generate free cash flow net of the critical investments detailed below;
• Restored working capital, settled overdue payables and in the process of settling minor unpaid taxes and establishing bonding program;
• Settled union agreements.

Recapitalization

Mercedes produced 30,000 ounces of gold in 2025. Significant improvement across worker safety, production and operating costs are expected in the coming years with a rejuvenated work force operating under the proven leadership of Mr. Chumpitaz, and the following programs planned:

• Infill and definition drilling to support an improved reserve model;
• Accelerated mine development to improve access and enhance operational productivity;
• Upgrading critical infrastructure including ventilation, electrical systems, surface water management and underground pumping capacity;
• Geotechnical drilling and implementation of support systems to improve safety and reduce dilution;
• Cost assessment and right-sizing mine contractor deployment to enhance productivity;
• Tailings management facilities expansion to support mine life extensions;
• Resumption of greenfield and brownfield exploration campaigns across extensive land package in geologically favourable and prospective areas.

About Highlander Silver Corp.

Highlander Silver is a high-quality silver-growth company developing a portfolio of advanced-stage assets in Peru which includes the Corani silver project, the largest fully permitted silver deposit in the world, and the bonanza-grade San Luis gold-silver project, which ranks among the 10 highest-grade projects globally in both gold and silver categories. The company also operates the Mercedes gold-silver mine in Mexico. Highlander Silver's major shareholders include the Augusta Group, Lundin family and Eric Sprott.

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