Mr. Arturo Prestamo reports

SANTACRUZ SILVER ANNOUNCES PUBLICATION OF 2025 SUSTAINABILITY REPORT FOR MEXICAN OPERATIONS

Santacruz Silver Mining Ltd. has released its 2025 sustainability report for its wholly owned Mexican subsidiary, Compania Minera Zilar Mendi, S.A. de C.V., which operated as Carrizal Mining S.A. de C.V. during the 2025 reporting period. The report highlights the company's environmental, social and governance (ESG) performance and progress across its Mexican operations during 2025.

"We are pleased to release our first sustainability report for our Mexican operations at Compania Minera Zilar Mendi, which operated under the name Carrizal Mining during the 2025 reporting period. This report represents an important milestone in our broader commitment to advancing sustainability practices across the entire company. At Carrizal Mining, 2025 was more than a period of expansion; it was a year devoted to a comprehensive assessment of our processes, a critical review of our operating model, and the design of a new strategy that will enable us to move more decisively toward a more sustainable operation," commented Arturo Prestamo, executive chairman and chief executive officer of Santacruz. "Our approach focuses on strengthening safety, environmental performance, operational efficiency, governance and social dialogue, while advancing innovation and responsible resource management. The result is a renewed corporate strategy with clear objectives to enhance our ability to generate sustainable value and respond responsibly to stakeholder expectations."

This report has been prepared with reference to the 2021 Global Reporting Initiative (GRI) standards. It covers the period from Jan. 1, 2025, to Dec. 31, 2025. The report for Carrizal Mining is available on Santacruz's website.

Key 2025 highlights

ESG approach

The company's ESG approach is integrated into its corporate strategy and stakeholder engagement framework, guided by environmental, social and governance pillars that support responsible, ethical and sustainable operations.

Environment

Carrizal Mining's environmental priorities include preserving the natural environment and preventing pollution, reducing greenhouse gas emissions, optimizing water and energy use, managing waste through efficiency, and recovery measures, and ensuring compliance with applicable environmental legislation and obligations.

Carrizal Mining also maintained a measurement-based energy management approach focused on operational efficiency, continuous monitoring and the gradual adoption of more efficient technologies to reduce costs and environmental footprint while strengthening operational resilience. In 2025, the company recorded electricity consumption of 696.31 kilowatt hour per tonne of concentrate produced, representing an increase of two kWh per tonne compared with 2024.

The company further advanced its waste management and recovery initiatives during 2025. Non-mineral hazardous waste generation declined by 27.62 per cent compared with 2024 as a result of stricter process controls and waste minimization programs, while flotation tailings increased by 1.17 per cent in line with higher production levels and were managed through enhanced handling and storage practices.

Carrizal Mining also expanded its recycling and recovery efforts through internal awareness campaigns, dedicated collection programs and partnerships with authorized waste management providers to support environmentally responsible disposal and recycling practices.

Social

Carrizal Mining recognizes occupational health and safety as a core priority given the nature of underground mining operations and the inherent risks associated with the industry.

During 2025, Carrizal Mining continued strengthening its health and safety management practices through the implementation of its Field Safety Leadership Activities (FSLA) framework, which promotes visible leadership, employee participation and early risk identification. The company also continued advancing initiatives aimed to support employee well-being, critical incident management and continuous improvement across operations.

Safety management covers 780 employees.

Governance

Carrizal Mining's governance structure supports oversight of the company's strategic, operational and sustainability objectives through dedicated management areas covering operations, risk management, technical services and controllership. Governance processes focus on regulatory compliance, operational oversight, financial integrity and risk management.

During 2025, the company continued strengthening internal controls and executive accountability through annual performance evaluations linked to corporate objectives, ethics, environmental performance, occupational health and safety, and human rights policies.

2026 ESG priorities

Looking ahead, the company's priorities in 2026 include strengthening its preventive culture, progressively incorporating technological innovation and advancing ESG performance to support a modern, competitive and socially responsible mining operation that generates sustainable value for stakeholders.

About Santacruz Silver Mining Ltd.

Santacruz Silver is engaged in the operation, acquisition, exploration and development of mineral properties across Latin America. In Bolivia, the company operates the Bolivar, Porco and Caballo Blanco mining complexes, with Caballo Blanco comprising the Tres Amigos and Colquechaquita mines. The Reserva mine, whose production is provided to the San Lucas ore sourcing and trading business, is also located in Bolivia. Additionally, the company oversees the Soracaya exploration project. In Mexico, Santacruz operates the Zimapan mine.

We seek Safe Harbor.