Mr. David Stein reports

KUYA SILVER SECURES PROCESSING CAPACITY THROUGH STRATEGIC ALLIANCE WITH CAMILA PLANT

Kuya Silver Corp. has closed a transaction with SMRL Camila 2008, the company that owns the Camila concentrate plant which Kuya uses to process its mineralized material into concentrates. All amounts are in United States dollars, unless otherwise noted.

Kuya Silver and the owners of Camila have finalized a revised transaction structure which replaces the previously announced letter of intent (see Kuya Silver press release dated Jan. 27, 2026) with a strategic toll-milling and financing agreement. Under the amended terms, Kuya Silver secures guaranteed access to the expanding processing throughput at Camila as the company continues to ramp up the Bethania silver mine. Kuya Silver will support the planned expansion of the Camila plant by providing secured financing to Camila.

David Stein, Kuya Silver's president and chief executive officer, stated: "We are thrilled to have completed this win-win partnership with the Camila plant which allows Kuya Silver to preserve its robust cash position while providing important funding to support the owner's expansion plans and secure processing throughput in the short term. After significant analysis by our team, we concluded that redirecting our capital towards the fully permitted Bethania plant project at site would provide a stronger risk-adjusted outcome for the future growth of the project."

Camila financing and processing guarantees

Kuya Silver has executed a secured loan with SMRL Camila 2008 for $400,000 to finance the expansion of the Camila processing plant to a capacity of approximately 280 wet tonnes per day (tpd). The loan bears interest at an annualized rate of 7 per cent for 24 months with equal monthly repayments. The loan is secured against equipment and includes a cash sweep from income generated by the plant during the term of the loan.

For the remainder of 2026 and until the end of March, 2027, Camila will reserve up to 3,000 tonnes per month (equivalent to approximately 100 tpd) of processing capacity exclusively for Kuya Silver, and from April, 2027, until maturity of the loan Camila will reserve 4,000 tonnes per month (equivalent to approximately 133 tpd) for Kuya Silver. Subject to advanced notice Kuya Silver will have the ability to secure additional capacity over and above the reserved levels with the potential to utilize the plant's full capacity. Favourable commercial terms have been agreed with the processing fee indexed to inflation over the term of the loan.

This strategic agreement provides Kuya Silver with significant operational flexibility to increase its concentrate production, sales and cash flow as the Bethania mine ramps up production in the short term. Any additional material produced at the Bethania operations in excess of the processing capacity at Camila can be stockpiled for future processing at the Bethania plant or processed at another third party facility.

Advancing the Bethania plant project

Kuya Silver expects to prioritize and accelerate the construction of its fully permitted 350 tpd Bethania plant at site, which would eventually become the primary processing facility for the Bethania mine and the potential satellite deposits located in the surrounding silver district. Kuya Silver is in the process of updating and optimizing its previous engineering design and cost estimates. Kuya Silver's longer-term plan to construct and process mineralized material at site has remained consistent, and the company believes that starting this project earlier could be an excellent opportunity to accelerate growth. The company expects to provide further updates on pre-construction milestones as the project progresses.

National Instrument 43-101 disclosure

The technical content of this news release has been reviewed and approved by Kevin J. O'Connell, independent technical adviser to Kuya Silver and a qualified person as defined by National Instrument 43-101.

About Kuya Silver Corp.

Kuya Silver is a Canadian-based, growth-oriented mining company with a focus on silver. Kuya Silver operates the Bethania silver mine in Peru, while developing district-scale silver projects in mining-friendly jurisdictions including Peru, Canada and Saudi Arabia.

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