Mr. Keith Henderson reports

LATIN METALS AND DAURA GOLD AGREE TO OPTION TERMS FOR CERRO BAYO AND LA FLORA PROJECTS, SANTA CRUZ PROVINCE, ARGENTINA

Latin Metals Inc. has entered into a binding letter agreement with Daura Gold Corp., under the terms of which Daura can earn an up-to-80-per-cent interest in the Cerro Bayo and La Flora projects.

Option terms

Daura will be granted the option to earn a 75-per-cent undivided interest in the properties for a period of 38 months from the date of execution and delivery of the letter agreement.

To exercise the option, Daura must make aggregate payments of $1.7-million (U.S.) to Latin Metals, assume payments of $400,000 (U.S.) to the underlying vendor (as defined below), complete exploration work commitments, and prepare and deliver to Latin Metals a report prepared in accordance with Form 43-101F1 on the properties, addressed to Latin Metals and containing a mineral resource estimate on the properties.

Irrevocable work commitments to be completed on or before April 30, 2026, are 50 line kilometres of induced polarization profiling, 150 line km of gradient array IP and 1,500 metres of drilling. A total of 28,000 metres of drilling must be completed prior to the exercise of the option.

Keith Henderson, chief executive officer of Latin Metals, stated: "Partnering with Daura Gold on the Cerro Bayo and La Flora projects demonstrates the continued success of our prospect generator model. Daura brings both financial strength and a strong technical team, enabling meaningful exploration in one of Argentina's most prolific precious metal belts. This agreement ensures our shareholders retain exposure to potential discovery while minimizing dilution."

Mark Sumner, president of Daura Gold, commented: "Cerro Bayo and La Flora strengthen Daura Gold's existing Peruvian portfolio with these properties in the Deseado massif, one of the most productive precious metal belts in the world. Through our agreement with Latin Metals, we're well positioned to rapidly advance drill-ready targets and unlock the projects' full potential."

The properties are currently subject to an underlying purchase agreement (as amended) (see news release dated June 25, 2025) between Latin Metals and Tres Cerros Exploraciones SRL. The underlying vendor retains a 0.75-per-cent net smelter return royalty, and 0.5 per cent can be purchased for $1-million (U.S.), which cost will be assumed by Daura.

Top-up right

Concurrently with the exercise of the option, Daura may give notice to Latin Metals of its intention to increase its interest in the properties to 80 per cent. To exercise the top-up right, Daura must make cash payments to Latin Metals based on the measured, indicated and inferred mineral resources included in the mineral resource estimate set out in the technical report, as follows:

1. $7 (U.S.) per gold equivalent ounce of measured and indicated resources; and
2. $5 (U.S.) per gold equivalent ounce of inferred resources.

Joint venture

Upon written notice by Daura to Latin Metals of the exercise of the option, Latin Metals and Daura will be deemed to have formed a joint venture in respect of which the initial participating interests of the parties will be 75 per cent Daura (80 per cent if the top-up right is exercised) and 25 per cent Latin Metals (20 per cent if the top-up right is exercised).

Upon the formation of the joint venture, Daura will assume Latin Metals' existing right to repurchase 0.5 per cent of the existing 0.75-per-cent net smelter return royalty from the underlying vendor for $1-million (U.S.).

If the interest of either party falls below 10 per cent, the parties' interest will be converted to a 2-per-cent NSR royalty, of which half (being 1 per cent) can be purchased by the other party for $5-million (U.S.) at any time until three months after a production decision.

Latin Metals royalty option

Following the top-up right expiry date and for 90 days thereafter, Latin Metals may elect in its sole discretion to convert its interest in the joint venture to a 3.0-per-cent net smelter return royalty, leaving Daura with a 100-per-cent interest in the properties. Daura shall have the right to purchase 33.33 per cent (being 1 per cent) of the converted royalty upon the payment to Latin Metals of $5-million (U.S.) at any time until the date that is three months after a production decision on the properties has been made, in which case the converted royalty shall be reduced to 2.0 per cent.

About Cerro Bayo and La Flora

In March, 2025, Latin Metals received formal approval of the environmental impact assessment, authorizing exploration drilling at Cerro Bayo. The approved permit includes authorization for 21 drill pads across the project area. A total of nine high-priority targets are defined by historical and recent exploration, and the project is year-round accessible, with excellent infrastructure and an experienced work force in Santa Cruz province.

Exploration work completed to date, including geochemical sampling, detailed mapping and over 100 line kilometres of magnetic surveys, has defined a six-kilometre-wide structural corridor with multiple low-sulphidation epithermal-style vein targets.

Strategic position in the Deseado massif

Cerro Bayo and La Flora are located in the heart of the Deseado massif, a prolific region with over 600 million ounces of silver and 20 million ounces of gold discovered since 1990. The district hosts multiple producing mines and advanced-stage projects, including:

• Newmont's Cerro Negro mine (approximately seven million ounces gold equivalent);
• Hochschild's San Jose mine (approximately 64 Moz AgEq).

Cerro Bayo's geological setting, structural controls and alteration footprint are consistent with known high-grade gold-silver systems in the region.

Readers are cautioned that the mineral deposits discussed above are adjacent properties, that Latin Metals has no interest in or right to acquire any interest in the deposits, and that mineral deposits on adjacent or similar properties, and any production therefore or economics with respect thereto, are not in any way indicative of mineral deposits on Latin Metals' Cerro Bayo property or the potential production from, or cost or economics of, any future mining of any of Latin Metals' mineral properties.

About Daura Gold Corp.

Daura is advancing high-impact exploration projects in Peru's renowned Ancash region. Daura owns a 100-per-cent undivided interest in over 15,900 hectares of exploration concessions in Ancash, including the 900-hectare Antonella target and adjacent 2,900 Libelulas concessions.

About Latin Metals Inc.

Latin Metals is a copper, gold and silver exploration company operating in Peru and Argentina under a prospect generator model, minimizing risk and dilution while maximizing discovery potential. With 18 projects, the company secures option agreements with major mining companies to finance exploration. This approach provides early-stage exposure to high-value mineral assets. Latin Metals is actively seeking new strategic partners to advance its portfolio.

Qualified person

Eduardo Leon, QP, is the company's qualified person as defined by National Instrument 43-101, and has reviewed the scientific and technical information that forms the basis for portions of this news release. He has approved the disclosure herein. Mr. Leon is not independent of the company as he is an employee of the company and holds securities of the company.

We seek Safe Harbor.