Mr. Jeffrey Reeder reports

PERUVIAN METALS SECURES 6 YEAR AGREEMENT WITH COMMUNITY AT MERCEDES PROJECT

The agreement between Peruvian Metals Corp.'s 50-per-cent-owned San Maurizo Mines Ltd., a private Manitoba company which holds a 100-per-cent direct interest in the Mercedes property, and Comunidades Campesinas y Nativas Comunidad Campesina de Pomamanta (the community) has been accepted and registered with Sunarp Peru's public registry. Development and exploration costs will be equally shared with Hudson Heartland Ltd.

The agreement with the community is valid for six years and allows local access to the mine site for exploration and exploitation of minerals. With the agreement and provisional permits in place, the company can commence the extraction of mineral for sale and/or processing. The company expects to complete the entire permitting process by the end of year to be able to extract up to 350 tonnes per day.

Initially, work will start on the Victor II vein, where previously announced metallurgical results show that high silver and gold recoveries are achievable. Metallurgical results, previously released (see the company's news release dated Jan. 23, 2026), 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, respectfully. New timber has replaced old timber to restore the historic underground workings, ensuring safe working conditions.

Mercedes will continue to be managed by Eric Hinton, PEng, and Jeff Reeder, PGeo. Mr. Hinton is the sole shareholder of Hudson Heartland, is a member of the Professional Engineers of Ontario and the Association of Professional Engineers and Geoscientists of the Province of Manitoba, and a fellow of the Canadian Institute of Mining and Metallurgy, and 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.

Jeffrey Reeder, the chief executive officer of Peruvian Metals, stated: "Our company is excited to work with the local community at Mercedes. Current permitting allows the company to commence the extraction of bulk samples. The company is continuing the process to receive full permits, and, with the support of the local community, the company expects to complete the process by year-end. When Peruvian Metals acquired an interest in the property, gold was trading at $2,175 (U.S.) per ounce and silver trading at $23 (U.S.) per ounce. Now that gold is in the $5,100 (U.S.) and silver in the $90 (U.S.) per ounce range, the economics has greatly improved. The company will be able to produce commercially marketable Au-Ag concentrates."

Jeffrey Reeder, PGeo, a qualified person as defined in National Instrument 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 Ing Jose Orlando Moncada Rejas, 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 Au-Ag.

Financing amendment

The company is also announcing that it has amended the proposed warrant terms in the financing announced Jan. 29. The warrants are exercisable at 15 cents for one year, rather than 20 cents for two years. All other terms of the financing remain unchanged.

About Peruvian Metals Corp.

Peruvian Metals is a Canadian exploration and mineral processing company. Its 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 from the Peruvian government, which provides the company with the ability to expand operations past the current 100-tonne-per-day level.

We seek Safe Harbor.