Mr. Jeffrey Reeder reports

PERUVIAN METALS PROVIDES PROGRESS UPDATE ON MERCEDES AU-AG PROPERTY WITH ASSAY RESULTS FROM THE NEWLY SAMPLED KELLY VEIN

Peruvian Metals Corp. has provided an update on the progress made by the company in 2026 on the Mercedes silver-gold property. The company acquired 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. Metallurgical results show that high silver recoveries and gold recoveries are achievable showing recoveries of 97.85 per cent for Ag and 92.19 per cent Au. More detailed information on the recoveries is provided in the company's press release dated Jan. 23, 2026. The property is being developed jointly with Hudson Heartland Ltd. (50-per-cent partner), with development and exploration costs to be equally shared.

Mercedes has extensive historical underground workings with horizontal drifts and shafts totalling approximately 900 metres. The company has located several historic workings from the 1980s, and has cleaned out and reinforced mine openings for safety and access. Five mineralized structures have been located, and all structures show Au and Ag mineralization. Mineral extraction from the underground working on the Victor II vein has commenced, and material is being placed in sacks and stockpiled. An assay from a random grab sample from the stockpiled material returned 5.88 grams gold per metric tonne, 5.55 ounces Ag/mt, 4.95 per cent lead and 7.07 per cent zinc. Once sufficient material is extracted, the company will ship this initial material to the company's Aguila Norte processing plant for an initial pilot bulk sample test. It is important to note that the assay from the stockpiled material may not represent the final grade for the first batch to be processed.

The company recently cleaned out and re-established the mine opening exposing the Kelly vein. Assays from one sample over a 0.60-metre width returned 3.16 grams Au/mt, 8.42 ounces Ag/mt, 0.58 per cent Pb and 4.88 per cent Zn. A large sample was collected from the underground working for metallurgical testing. The Kelly mineralized structure is located 140 metres west of the Victor II vein, and generally trends in the same direction as the Victor I, Victor II, Charo and Herraje veins. The company plans to develop a 225-metre drift to crosscut the Kelly, Victor 1 and Victor II veins allowing extraction from six possible mineralized faces. Certain permits are pending for this underground development.

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. Several permits and permissions have been granted allowing for small-scale extraction and processing of the mineralized material. Permitting is almost complete, which will allow the development of the crosscuts for bulk sampling extraction.

Jeffrey Reeder, the chief executive officer of Peruvian Metals, stated: "Our company is excited to jointly develop and explore the prospective Mercedes property. 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 and gold at $2,100 (U.S.) per ounce. Now that silver is in the $70 (U.S.) and gold in the $4,600 (U.S.) per ounce range, the economics has greatly improved. Our agreement with San Maurizo follows our business model by associating with small miners throughout Peru by providing them capital, permitting and geological expertise. Partnering with a private company will enable both entities to generate substantial cash flow."

Mr. 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 company's Aguila Norte plant. Assaying of the material was performed by Procesmin Ingenieros Srl, located in Caraz Ancash, by fire assay for Au-Ag.

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.

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