Mr. Jeffrey Reeder reports

PERUVIAN METALS REPORTS: SILVER - GOLD RECOVERIES OF 97.85 % AND 92.19% RESPECTIVELY FROM THE VICTOR II VEIN AT THE MERCEDES AG-AU PROPERTY IN CENTRAL PERU

Peruvian Metals Corp. has provided an update on the progress made by the company in 2025 and its plans for exploration and development for 2026 on the Mercedes silver-gold property. The company is also pleased to announce it has completed its obligations to acquire a 50-per-cent interest in San Maurizo Mines Ltd., a private Manitoba company, which holds a 100-per-cent direct interest in the property through its wholly owned Peruvian subsidiary, Basic Minerals SAC. The new metallurgical results show that high silver recoveries and gold recoveries are achievable. The new venture will be jointly developed with Hudson Heartland Ltd. (50-per-cent partner) and development and exploration costs will be equally shared.

The Mercedes property is located in the Junin department in central Peru and covers an area of approximately 1,345 hectares. Mercedes is accessible from the town of Concepion located on the central highway by approximately 40 kilometres of a well-maintained gravel road. Peruvian Metals' team has assisted San Maurizo's Peruvian subsidiary in the permitting by submitting the documentation needed for bulk sampling extraction.

Mercedes has extensive historical underground workings with horizontal drifts and shafts totalling approximately 900 metres. Previous operators from the early 1980s focused on three main structures called the Victor I, Victor II and Kelly veins. In total over 15 mineralized structures were identified crossing Upper Cretaceous and Late Tertiary Sucllamachy granites. Historic reports indicate a total of over 15 mineralized structures/veins identified crossing Upper Cretaceous and Late Tertiary Sucllamachy granites. These structures generally trend north-northwest-south-southwest and are subparallel to a large U-shaped gully, allowing easy underground access to these mineralized structures. To date, the company has located six mineralized veins.

Recent metallurgical results have confirmed the high recoveries of silver and gold at Mercedes. The lead and zinc content is determined to be insignificant compared with the silver-gold. To achieve the higher recoveries, metallurgical work and future processing only focused on the recoveries of silver-gold. Therefore, the company will design its process method to produce only one silver-gold concentrate. Concentrates are expected to contain low to moderate amounts of lead.

One large composite sample over several tens of metres was recently taken in the Victor II workings. The head grade of the composite sample returned 3.69 grams per metric tonne gold and 9.4 ounces per metric tonne silver. Metallurgical results using flotation methods produced a concentrate grading 33.03 ounces per metric tonne silver and 12.23 grams per metric tonne gold. Silver-gold recoveries returned 97.85 per cent and 92.19 per cent, respectively. A mineral-to-concentrate ratio of 3.50:1 was also achieved. The Victor II vein is well exposed in two levels in the underground adits. The mineralized structure ranges in width from 0.30 to 1.0 metre in width, as reported by company geologists

The company recently located a fourth mineralized structure called the Charo vein. This mineralized structure is located 475 metres west of the Victor II vein and on the opposite side of the U-shaped gully. A historic 45-metre adit was located and cleaned out. The adit opening was re-established and secured for access. Initially, three samples were taken in the adit, and assays returned an average of 1.33 grams per metric tonne gold, 14.83 ounces per metric tonne silver and 1.36 per cent lead. Assays ranged from 0.25 to 2.59 grams per metric tonne gold, 0.398 to 41.697 ounces per metric tonne silver and 0.17 to 3.67 per cent lead over an average width of 0.35 metre. One large composite sample was taken over the length of vein for metallurgical work. The head grade of the composite assayed 0.63 gram per metric tonne gold and 6.10 ounces per metric tonne silver. Metallurgical results using flotation methods produced a concentrate grading 48.42 ounces per metric tonne silver and 4.01 grams per metric tonne gold. Silver-gold recoveries returned 92.3 per cent silver and 74.7 per cent gold. A mineral-to-concentrate ratio of 8.54:1 was achieved.

Mercedes has secured access agreements with the local community. A camp has been established and new road access to the upper showings is currently under way. During the first quarter of 2026, two groups of miners will start extracting mineral from the Victor II and Charo veins. Once the weather improves, the company will start the development of a 225-metre, 2.5-metre-by-3.0-metre crosscut to intersect the Kelly, Victor I and Victor II veins. This adit is designed to provide access to multiple mineralized faces and establishing underground drill sites. Mineral material will be processed at a local toll mill 12 kilometres from the project. The project is subject to a 20-per-cent net profit interest (NPI) and will be eliminated once $4-million (U.S.) is paid to the holder of this NPI.

Mercedes will continue to be managed by Eric Hinton, PEng, and Jeffrey Reeder, PGeo. Mr. Hinton is the sole shareholder of Hudson Heartland and is a member of the Professional Engineers of Ontario, the Association of Professional Engineers and Geoscientists of the Province of Manitoba and a fellow of the Canadian Institute of Mining and Metallurgy. He is a designated qualified person as defined by National Instrument 43-101 guidelines. Mr. Hinton has over 35 years of underground and open-pit mining experience in Canada, the United States, Ghana and Zimbabwe. Peruvian Metals will continue to be involved in the project by providing administrative, accounting, permitting and geological services.

Mr. Reeder, the chief executive officer of Peruvian Metals, states: "Our company is excited to jointly develop and explore the prospective Mercedes property with Hudson Heartland Ltd. The property has several high-grade precious metal veins ready to be explored and bulk sampled. When Peruvian Metals acquired an interest in the property, silver was trading at $23 (U.S.) per ounce. Now that silver is in the $90-(U.S.)-per-ounce range, the economics has greatly improved. The new metallurgical work suggests we focus on achieving the highest silver recoveries by producing only one concentrate, rich in silver and gold. Our agreement with San Maurizo follows our business model by associating with small miners throughout Peru by providing them capital, permitting and geological expertise. San Maurizo's Peruvian subsidiary is well established and permitting is almost complete. Partnering with a private company will enable both entities to generate substantial cash flow."

Mr. Reeder, a qualified person as defined in NI 43-101, has prepared, supervised the preparation or approved of the scientific and technical disclosure contained in this news release. The metallurgical work was performed by Jose Orlando Moncada Rejas, Ing, who is the main metallurgist at the Aguila Norte plant owned by the company. Assaying of the material was performed by Procesmin Ingenieros SRL, located in Caraz Ancash, by fire assay for gold-silver.

About Peruvian Metals Corp.

Peruvian Metals is a Canadian exploration and mineral processing company. The company's business model is to acquire and develop precious and base metal properties in Peru and to provide clients with toll milling services and produce high-grade marketable concentrates from mineral purchases. The Aguila Norte processing plant has an environmental permit (IGAC) from the Peruvian government, which provides the company with the ability to expand operations past the current 100-tonne-per-day level.

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