Mr. Mark Ayranto reports

SILVERCO BEGINS EXPLORATION DRILLING AT LA NEGRA PROJECT

Surface and underground exploration drills have been mobilized at Silverco Mining Ltd.'s 100-per-cent-owned La Negra project in Queretaro, Mexico.

Mark Ayranto, chief executive officer of Silverco, commented: "Commencing our first exploration program at La Negra marks an exciting milestone for Silverco. With two rigs now active as part of a planned 15,000-metre 2026 program, we are focused on testing high-grade silver zones with potential to feed into the mine plan early in the mine life and additional priority targets. Through the remainder of H2 2026, we expect initial results from this program, an updated mineral resource estimate and a life-of-mine plan for La Negra. These catalysts are in addition to expected results from the ongoing 30,000-metre drill program and the planned restart of Cusi in late Q4 2026, making for a catalyst-rich H2 2026."

The primary focus of the 2026 program will be targeting areas with the potential for high-grade silver within proximity of the existing La Negra underground mine. The project database contains more than 2,850 drill holes totalling over 230,000 metres, completed over the property's more-than-50-year history. The majority of drilling over the last 20 years has been near existing development. This drilling has returned numerous significant historical results, including wide intervals and high grades, across a multitude of deposits and orebodies that the company believes carry high potential and warrant substantial follow-up. Many of these zones have seen limited or no drilling in over a decade, and mineralization remains open vertically and laterally. Selected historical results are presented in Table 1.

Surface drilling will initially focus on the Valenciana target, located less than one kilometre northwest of existing underground workings, while underground drilling will test multiple target areas proximal to existing mine development, including Maravillas, Valeria and Blanca. Collectively, these targets are prioritized based on the strength of historical drill results, proximity to existing infrastructure and the potential to add high-grade silver material to future mine plans.

Work to date

Drill mobilization follows several months of systematic technical groundwork completed in the first half of 2026. The company has consolidated and validated the project's drill hole database, reviewed historical geological mapping from previous operators, and completed new underground mapping across existing mine workings. Standardized core logging protocols and quality assurance/quality control procedures have been established for the 2026 program, and drill core will be submitted for multielement analysis, providing the geochemical data set needed to vector toward silver-rich portions of the zoned skarn system. In parallel, the company has reinterpreted the deposit's resource wire frames through rigorous three-dimensional geological modelling, which now form the foundation for an updated mineral resource estimate (MRE) expected to be completed in the coming months.

The company also plans to fly a property-wide lidar survey aimed at identifying potential surface expressions of chimney-style high-grade mineralization, including historical workings, subsidence features and structural lineaments not evident in existing topographic data.

This work has generated a substantial inventory of exploration targets across the property. The 2026 program will test a prioritized subset of these targets, with the remainder forming a multiyear exploration pipeline.

Deposit style

La Negra is a silver-rich polymetallic (silver-lead-zinc-copper) skarn deposit, part of the broader family of carbonate replacement deposit (CRD) and skarn systems that host many of Mexico's largest and longest-lived silver mines. Mineralization formed where fluids associated with granitic intrusions replaced the surrounding Cretaceous carbonate rocks, producing clusters of high-grade sulphide bodies along intrusive contacts and favourable structures. Orebodies in CRD-skarn systems rarely occur in isolation, and mineralization at La Negra remains open at elevation, at depth, and laterally along the host structures and intrusive contacts.

Detailed historical drill results, along with notable assays results, are provided in Table 1.

Quality assurance/quality control and sampling procedures

Historical drill results disclosed in this news release are derived from drill logs, digital databases and technical reports in the company's possession. The qualified person has reviewed the available historical records and considers the results to be reasonably reliable and relevant to the current exploration program; however, the company has not independently resampled or reassayed the historical drill core, and the QA/QC protocols employed at the time of the original drilling cannot be fully verified.

All drill core samples from the 2026 exploration program will be subject to industry-standard QA/QC protocols, including the systematic insertion of certified reference materials, blanks and duplicates into the sample stream.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Nico Harvey, PEng, vice-president, project development, of Silverco, a qualified person as defined in National Instrument 43-101. Mr. Harvey is not independent of the company. Mr. Harvey has reviewed the technical information disclosed herein.

About Silverco Mining Ltd.

Silverco Mining is a Canadian silver producer focused on building a leading multiasset silver portfolio in Mexico. The company owns 100 per cent of the producing La Negra mine in Queretaro and the past-producing Cusi silver complex in Chihuahua, two established underground mining operations with significant infrastructure, exploration upside and district-scale land positions. The company is restarting Cusi in the second half of 2026, positioning Silverco to become a significant primary silver producer in the Americas in the near term. Led by an experienced management team with a proven record in mine development, operations and capital markets, Silverco is focused on creating long-term shareholder value through disciplined growth and responsible mining practices with a goal of becoming a 10-million-ounce-silver-equivalent-per-year producer within three years. Silverco's common shares trade on the TSX Venture Exchange under the symbol SICO and on the OTCQB under the symbol SICOF.

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