Mr. Keith Henderson reports

LATIN METALS OPTIONS ORGANULLO GOLD PROJECT, SALTA PROVINCE, ARGENTINA

Latin Metals Inc. has entered into a binding letter agreement with Aumin Argentina S.A.U., whereby Aumin has been granted an option to acquire a 100-per-cent interest in the company's Organullo gold project, located in Salta province, Argentina.

Option highlights:

• $4.0-million (U.S.) aggregate option cash payments to Latin Metals;
• Minimum cumulative drilling of 3,000 metres (m) by first anniversary, 15,000 m by third anniversary and 40,000 m by sixth anniversary;
• Following the stock exchange listing of Aumin or a designated listing vehicle and exercise of the option by Aumin, Latin Metals may elect for either:
  • 19.9-per-cent ownership of the listed vehicle, with customary participation rights and board representation;
  • Or a 2-per-cent net smelter return (NSR) royalty on the project (elective NSR royalty), up to a 1-per-cent royalty of which elective NSR royalty may be repurchased within three years for $20-million (U.S.), leaving Latin Metals with a 1-per-cent NSR royalty with no further buyback right;
• Potential aggregate cash consideration of up to $24-million (U.S.), assuming non-accelerated option exercise and elective royalty buyback are completed.

Potential acceleration of option:

• Following completion of at least 15,000 metres of drilling, Aumin may elect to accelerate the option exercise (the accelerated acquisition) by paying all remaining option cash payments plus an additional $16-million (U.S.) cash;
• Latin Metals retains a 2-per-cent NSR royalty on the project (acceleration NSR royalty) if Aumin elects to complete the accelerated acquisition;
• Up to a 1-per-cent royalty of the acceleration NSR royalty may be repurchased for $20-million (U.S.), leaving Latin Metals with a 1-per-cent NSR royalty with no further buyback right;
• Potential aggregate cash consideration of up to $40-million (U.S.), assuming the accelerated acquisition and acceleration NSR royalty buyback are both completed.

Argentina-based team with exceptional record

The team behind Aumin, led by Hernan Zaballa, has extensive experience in Argentina, with a record that includes the founding of AbraSilver Resource Corp. and the acquisition and development of its Diablillos silver-gold project. Having worked together in Argentina-focused mineral exploration and project generation for more than a decade, the respective experience of the team combines geology and exploration strategy, Argentine mining law and transaction structuring, and in-country operational, environmental and social expertise.

Today, Diablillos has become one of Argentina's most significant advanced-stage precious metal development projects. In 2026, AbraSilver reported combined measured and indicated resources containing approximately 248 million ounces of silver and 2.54 million ounces of gold, and completed a definitive feasibility study containing proven and probable reserves of approximately 183.5 million ounces of silver and 1.76 million ounces of gold (AbraSilver Resource news release dated June 22, 2026). AbraSilver has a current market capitalization of approximately $2.2-billion.

Readers are cautioned that the Diablillos deposit discussed above is a mineral deposit located in Salta province and that Latin Metals has no interest in or right to acquire any interest in the deposit, 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' Organullo property or the potential production from, or cost or economics of, any future mining of any of Latin Metals' mineral properties.

Keith Henderson, president and chief executive officer of Latin Metals, stated:

"We are particularly pleased with the group that will be taking Organullo forward. Hernan and his team have worked together in Argentina for many years and bring complementary technical, legal, transactional and operational expertise. Their history with Diablillos is particularly compelling. They identified an opportunity in an asset that had become non-core to a much larger mining company, negotiated a creative transaction to acquire it and founded AbraSilver. Diablillos is today a major advanced-stage silver-gold project in Argentina.

"I believe that the experience this group brings, in particular with respect to in-country operational, environmental and social expertise, makes them an excellent partner for Organullo."

Mr. Henderson continued:

"The transaction preserves meaningful upside for our shareholders under various option exercise scenarios. Under a potential accelerated acquisition, Latin Metals would receive up to $40-million (U.S.) in cash while retaining a 1-per-cent NSR royalty."

Hernan Zaballa, president of Aumin, stated:

"Organullo is a compelling opportunity for Aumin: a large, underexplored gold system in Salta with significant technical work already completed and considerable room for new discovery. The previous work provides us with a strong technical foundation, but importantly, we believe there is still substantial exploration potential across the broader property.

"Our team has spent many years acquiring, financing and advancing mineral projects in Argentina, and we intend to bring that same disciplined approach to Organullo. We are very pleased to be partnering with Latin Metals and look forward to advancing the project through systematic exploration and drilling."

Option terms

Latin Metals has granted Aumin or its designee an exclusive option to acquire a 100-per-cent interest in the project by paying an aggregate $4-million (U.S.) cash to Latin Metals and completing an aggregate 40,000 m of drilling on the project over a six-year period (table 1).

Aumin shall pay Latin Metals $100,000 (U.S.) cash within 10 days of the execution of the letter agreement (paid). Thereafter, Aumin has an exclusive period of three months, extendable by up to one additional month, to complete due diligence and execute a definitive agreement, or, if the definitive agreement is not executed, to deliver a confirmation notice to Latin Metals confirming Aumin intends to proceed with the option. Upon execution of definitive agreement or receipt of the confirmation notice, Aumin will pay an additional $150,000 (U.S.).

The commencement date is defined as the earlier of: (i) six months following execution of the letter agreement (March 16, 2027); (ii) the date upon which the definitive agreement is executed; or (iii) the date on which all drill permit filings with governmental entities have been approved.

Upon completion of the cash payments and drill commitments outlined above, the option shall be exercised in full and Aumin shall acquire 100 per cent of the project, subject to Latin Metals' election within 30 days to either:

• Obtain a 19.9-per-cent ownership interest in the listed vehicle, with participation rights and board representation;
• Or receive a 2-per-cent elective NSR royalty.

It is a condition of the letter agreement that the listed vehicle shall complete the listing of its common shares on the TSX Venture Exchange or other recognized stock exchange in Canada, the United States, Australia or England. If the listed vehicle has not been listed on a recognized stock exchange for a period of at least 12 months prior to the exercise of the option, Latin Metals shall have 30 days from the date that is 12 months following the completion of such listing to elect to receive either the equity interest or the 2-per-cent elective NSR royalty, provided that the listing requirement shall not apply if Aumin elects to complete the accelerated acquisition.

Accelerated option exercise

At any time after Aumin has completed 15,000 m of drilling, Aumin shall have the right to complete the accelerated acquisition and buyout Latin Metals' right to receive an equity interest.

To complete the accelerated acquisition, Aumin is required to: (i) pay Latin Metals the aggregate amount of all cash payments contemplated under the option that remain unpaid as of the date of acceleration, whether or not such payments would otherwise have become due at that time; and (ii) pay Latin Metals an additional $16-million (U.S.) cash payment in consideration for the cancellation and extinguishment of its right to receive the equity interest. If the accelerated acquisition is completed, Latin Metals shall retain a 2-per-cent NSR royalty on the project.

Royalty buyback rights

In any case in which Latin Metals retains the election NSR royalty or the acceleration NSR royalty, Aumin shall have the right, for three years following the date on which the election NSR royalty or the acceleration NSR royalty is granted, to repurchase up to an aggregate one-half of the applicable royalty, as follows:

• $10-million (U.S.) to repurchase one-quarter (0.5 per cent) of the election NSR royalty or the acceleration NSR royalty, as applicable;
• Or $20-million (U.S.) to repurchase one-half (1 per cent) of the election NSR royalty or the acceleration NSR royalty, as applicable.

About the Organullo gold project

Organullo is a 100-per-cent-owned gold exploration project with an approved social and environmental impact report (SEIR) (informe de impacto ambiental y social -- etapa de exploracion avanzada) for exploration drilling at the project. The SEIR approval is issued in favour of Cardero Argentina S.A., a wholly owned subsidiary of Latin Metals, and authorizes various exploration activities, including up to 11,900 m of diamond drilling.

The project is subject of a National Instrument 43-101 technical report, entitled "2015 Technical report on the Organullo Project," which includes details of a report written by GeoRes, an Australian consulting firm. The 2012 GeoRes report, entitled "Organullo Exploration Targets and Pit Optimization," resulted in: (i) potential exploration target tonnages; and (ii) potential exploration target grades of gold at the Organullo project, which were reported at lower and upper ranges. At a lower gold cut-off grade of 0.5 g/t the total exploration targets ranged from a lower 19.8 million tonnes (t) at 0.94 gram per tonne (g/t) gold (600,000 ounces of gold) to an upper 31.6 million t at 0.92 g/t (940,000 ounces of gold).

It should be noted that these potential exploration target quantities and grades are conceptual in nature, that insufficient exploration and geological modelling have been done to define a mineral resource, and that it is uncertain if further exploration will result in the delineation of a mineral resource.

Most recently, the project was optioned to AngloGold Ashanti, which completed technical work and identified three priority target areas as part of its evaluation of the property. Exploration at Organullo has identified extensive advanced argillic alteration associated with a geological environment prospective for high-sulphidation epithermal mineralization and porphyry-style systems. The Salares Norte gold deposit in Chile (Goldfields project; proven and probable reserve (2024); 3.4 million ounces (oz) grading 5.36 g/t gold) is Anglo's technical analogue for Organullo high-sulphidation epithermal drill targets.

Readers are cautioned that the Salares Norte gold deposit analogy above is located in Chile, and that Latin Metals has no interest on or right to acquire any interest in the deposit, and that mineral deposits on similar properties, and any production therefore or economics thereto, are not in any way indicative of mineral deposits at Organullo or the potential production from, or cost or economics of, any future mining of any of Latin Metals' mineral properties.

The 2012 GeoRes report points to potential gold mineralization in areas where there has been significant historical drilling. The high-sulphidation drill targets identified by AngloGold are unrelated to historically drilled areas and are located in an untested portion of the Organullo property.

About Aumin and its management team

The management team at Aumin negotiated the acquisition of the Diablillos silver-gold project from Silver Standard Resources Inc. (now SSR Mining Inc.) in 2016, through Huayra Minerals Corp. At the time of the transaction, Diablillos was a substantial, drilled and technically studied silver-gold project with a defined mineral resource. The group recognized an opportunity to acquire and advance an asset that had become non-core within a much larger mining company.

The acquisition was structured with relatively modest upfront cash consideration, together with deferred payments, equity and a retained royalty. Silver Standard became a 19.9-per-cent shareholder of Huayra and retained a 1-per-cent NSR royalty, providing it with continued exposure to the project's future success.

Huayra subsequently completed a reverse takeover in 2017 to create AbraPlata Resource Corp. Hernan Zaballa served as executive chairman. AbraPlata completed significant drilling at Diablillos and ultimately published a positive preliminary economic assessment in 2018.

Following a subsequent recapitalization and management transition beginning in 2019, AbraPlata (subsequently renamed AbraSilver Resource) expanded exploration at Diablillos and advanced the project through resource definition, engineering and feasibility. AbraSilver has a current market capitalization of approximately $2.2-billion.

Readers are cautioned that the Diablillos deposit discussed above is a mineral deposit located in Salta province and that Latin Metals has no interest in or right to acquire any interest in the deposit, 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' Organullo property or the potential production from, or cost or economics of, any future mining of any of Latin Metals' mineral properties.

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 16 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 (QP)

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 officer of the company and holds securities of the company.

We seek Safe Harbor.