Mr. Mark Ayranto reports

SILVERCO MINING PROVIDES LA NEGRA MINE OPERATIONS UPDATE

Silverco Mining Ltd. has provided an update on activities at its 100-per-cent-owned La Negra mine in Queretaro, Mexico, following the closing of the acquisition of the asset on May 19, 2026.

Mark Ayranto, chief executive officer of Silverco, commented: "Since acquiring La Negra, we have moved quickly to strengthen our operating team, commit capital to debottleneck operations and launch a 15,000-metre exploration program. These changes are already delivering initial operational improvements. We expect the mine to reach nameplate capacity of 2,500 tonnes per day in H1 2027, driven by the addition of new mobile equipment and a filtered tailings process.

"Concurrently, our 15,000-metre drilling program is under way, and we have engaged SGS Geological Services to complete a new resource estimate and preliminary economic assessment (PEA). We believe the current mine plan significantly understates what this asset can achieve. Filtered tailings, a renewed underground fleet and a materially better understanding of the orebody are the three key catalysts that will transform La Negra to key cash flow contributor, and all three are now in motion."

Highlights since acquisition:

• General manager appointed: The company has appointed a general manager with extensive experience in underground operations in Mexico. The general manager has been mandated to deliver operational improvements and efficiency at site, including strengthening mine planning, maintenance and operating disciplines, improving productivity and unit cost performance, and implementing the company's corporate technical standards and governance framework.
• Underground mobile fleet renewal ordered: The company has ordered underground equipment from Epiroc, including one development jumbo, one long-hole production drill and four scoops. Deliveries are scheduled across Q4 2026 and Q1 2027. The new fleet is expected to improve equipment availability and development rates, reduce maintenance costs, and support the higher mining rates required to sustain the mill at nameplate capacity.
• Tailings filtration project on track for Q1 2027 completion: The company has placed orders for a thickener and filter presses to transition La Negra from conventional tailings deposition to filtered (dry stack) tailings placement. Detailed engineering is progressing, and civil works are expected to start in the coming months. Equipment delivery is expected early Q1 2027, with installation and commissioning to be completed by the end of Q1 2027. Filtered tailings placement is expected to remove the constraint on throughput, allowing the mill to operate at its full 2,500-tonne-per-day nameplate capacity and to materially increase the total storage capacity and stability of the tailings facility over the life of the operation.
• Campaign milling implemented: Silverco has adopted a campaign milling strategy at the processing plant to improve operating efficiency, metallurgical stability and unit costs ahead of the transition to dry-stack tailings. The mill now runs at near full capacity for defined campaigns and is idled between campaigns, allowing for plant maintenance and improvements, with mined ore stockpiled on surface in the interim.
• Grade control improvement program implemented: A revised grade control program has been implemented at La Negra, including updated sampling, core logging, modelling and reconciliation procedures. The program is intended to improve the accuracy of short-term grade prediction, reduce dilution and ore loss, and improve mine-to-mill reconciliation.
• Updated mineral resource estimate and preliminary economic assessment (PEA) under way: SGS has been engaged to complete an updated mineral resource estimate and an initial PEA for La Negra. Results are expected to be released in late Q3 2026.
• Knight Piesold engaged as engineer of record: Knight Piesold Consulting has been engaged to transition into the role of engineer of record for the La Negra tailings storage facility and is currently undertaking the associated review and onboarding process. The engagement forms part of the company's adoption of industry best practice in tailings governance and management.
• 15,000-metre exploration program under way: In mid-July, Silverco initiated a 15,000-metre exploration drill program at La Negra. Approximately 1,000 metres have been completed, and the first assay results are expected to be received in late Q3 2026. The program is designed to test near-mine extensions and to support conversion and expansion of the current mineral resource, as outlined in the news release.

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-per-year silver equivalent 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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