Mr. Jeffrey Reede reports

PERUVIAN METALS CORP. COMMENCES UNDERGROUND DEVELOPMENT TO ACCESS HIGH-GRADE AU-AG SULPHIDES AT PALTA DORADA

Peruvian Metals Corp. has commenced underground development at its 100-per-cent-owned Palta Dorada gold-silver property located in the Ancash department in northern Peru. Road access throughout the property has been significantly improved, and all historic adits and mine openings have been cleaned out with new re-established mine portals. The company has also purchased the required equipment and reconditioned the generator and an industrial winch for this work to commence immediately. The camp has been significantly improved to house more personnel, and communication infrastructure has been established.

The property covers an area of approximately 2,250 hectares. It is accessible from Peruvian Metals' Aguila Norte processing plant by approximately 140 kilometres of mainly paved roadway. The company is capable of extracting both oxide and sulphide material. Oxide material will be initially sold to local toll mills capable of treating oxide material whereas sulphide material will be shipped to the plant for processing.

The work from May to the end of August consisted of re-establishing the main mine portals to the San Juan vein from two different level locations. The main portal, located on the 883-metre level, is the primary access to a 180-metre-long drift, which required several places to be cleaned out and re-established with new support infrastructure. This work is complete, allowing for a safer working environment.

The second working consists of a 53-metre-deep shaft located at the 940-metre level, 320 metres along strike east-northeast of the lower main portal entrance. The shaft is accessible from surface but also by a short 20-metre adit at the 920-metre level where the oxide-sulphide transition begins. This drift was also cleaned out and re-established with new support.

In 2022, a 31-tonne bulk sample grading 9.74 grams gold per tonne (Au/mt) was extracted from the oxide zone and sold to a local mill. Previously announced assay results on seven chip samples taken at various depths in the shaft from the quartz vein containing sulphides returned a weighted average of 10.51 grams Au/mt, 329 grams silver per tonne and 1.74 per cent copper. Assay results from these samples range from 3.06 to 24.1 grams Au/mt, 36 to 865 grams Ag/mt and 0.31 per cent Cu to 4.94 per cent Cu over an average width of 0.60 metre.

The initial development will consist of a 50-metre crosscut collared at the 910-metre level aimed to crosscut the east-northeast-southwest-south-trending mineralized structure southwest of the shaft. The purpose of this drift is to intersect the sulphide zone exposed in the shaft, enabling the company to simultaneously work two mineralized faces. The company is also installing an industrial size, winch located on surface at the 940-metre level capable of hauling to surface one-half metric tonnes of material per load. Material from this working will be shipped to the company's Aguila Norte plant for processing.

As previously announced (see company's press release dated April 14, 2026), the head grade of a metallurgical sample assayed by Certmin SA, an independent and accredited lab, assayed 11.10 grams Au/mt and 145 grams Ag/mt. Metal recoveries on this sulphide material using flotation methods confirmed 89 per cent for gold and 75 per cent for silver. Oxide material taken in the short adit above the oxide-sulphide transition returned 35.1 grams Au/mt and 1.51 ounces Ag/mt. The sample taken was a composite over one-half metre width. Previously announced metallurgical results on the oxide zone showed agitated cyanide leaching results with recoveries of 82 per cent for gold and 58 per cent for silver over 48 hours.

Once mineral processing starts, the company plans to extend the main access on the 883-metre elevation level to a distance of 350 metres. Once completed, the company will extend the shaft downward to intersect the main drift. This work will provide further improvements to the underground infrastructure. Part of the future development will also establish underground drill stations to test the San Juan vein at depth. The current known strike length of the San Juan vein is 840 metres and remains open in both directions along strike.

The company will also start re-establishing old workings on the southeast-northwest-trending North 1 structure located on the opposite side of the valley where 12 previously announced samples were taken from oxide material over a strike length of approximately 450 metres. All samples were strongly oxidized, and assay results ranged from 1.40 to 17.3 grams Au/mt Au and 10.8 to 456 grams Ag/mt Ag over widths of 0.20 to 0.80 metre. The weighted average of the results is 7.92 grams Au/mt and 102 grams Ag/mt. A mini-bulk sample was taken for metallurgical work from sacks containing oxide gold material. A bottle-roll metallurgical test was performed on oxide material with a head grade of 13 grams Au/mt and 113 grams Ag/mt showing recoveries of 92 per cent for gold and 65 per cent for silver over 36 hours. Nine of these samples were taken 600 metres west-northwest of the main portal entrance at an elevation of 1,040 metres. The remaining three samples were sampled at the 950-metre elevation 420 metres along strike to the southeast.

"The company is pleased to start the underground development at Palta Dorada. The equipment is now on site, and workers have returned from break to start the new crosscut and the establish the winch above the shaft. Metallurgical results from both oxide and sulphide material highlight the gold potential at Palta Dorada. With the new infrastructure, the company will also start a property wide exploration program once mineral processing starts. The property hosts at least four mineralized structures that are now accessible. We have sold gold oxide material from Palta Dorada in 2022. Sulphide material will be transported to our Aguila Norte plant for processing to produce a Au-Ag concentrate for sale," commented Jeffrey Reeder, chief executive officer, of the company.

Qualified persons

Jeffrey Reeder, PGeo, is the qualified person, as defined in National Instrument 43-101, who has reviewed and approved the technical contents of this release. The previous metallurgical work was supervised by Ing Jose Orlando Moncada Rejas, who is the main metallurgist at the Aguila Norte plant. Assaying was performed by Procesmin Ingenieros SRL located in Caraz Ancash by fire assay for Au-Ag. The metallurgical work on the main San Juan structure was performed by Certmin's chief metallurgist Ing Luis Loaiza. Assaying was done in-house at Certmin, and metallurgical work on the oxide material was processed and analyzed by fire assay at Auro Met Labs located in Trujillo. Auro Met Labs is used by many of the miners and toll mills in the area.

About Peruvian Metals Corp.

Peruvian 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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