Mr. Nick DeMare reports

SALAZAR RESOURCES' 25% EL DOMO INTEREST REMAINS FULLY CARRIED THROUGH UPDATED US$298 MILLION CONSTRUCTION BUDGET

Silvercorp Metals Inc., the operator of the Curipamba/El Domo copper-gold project, has updated the project's construction budget to $298.2-million (U.S.), an increase of $14.6-million (U.S.) (approximately 5 per cent). Salazar Resources Ltd.'s 25-per-cent interest in El Domo is fully carried through to commercial production, with no additional development or construction financing obligations. The company is not required to finance any part of the budget increase.

More than half of the net budget increase, $8.3-million (U.S.), reflects higher diesel costs after Ecuador eliminated diesel subsidy. Silvercorp attributes the schedule change to extended rainfall at site. Silvercorp had spent $90.9-million (U.S.) on construction to Sept. 30, 2026, and the updated budget retains $14.3-million (U.S.) of owner contingency. Silvercorp has stated that the production target is subject to, among other things, weather conditions and contractor performance and there can be no assurance that production will commence when targeted.

In its news release of Oct. 27, 2026, the company stated that it would report the updated schedule once the operator provided it. This news release fulfills that undertaking.

Highlights (as reported by Silvercorp in its news release dated Nov. 3, 2026):

• Spending: $90.9-million (U.S.) to Sept. 30, 2026, with $207.3-million (U.S.) remaining; the budget includes $36.7-million (U.S.) of value-added tax;
• Schedule: production is now targeted for November, 2027, four months later than previously planned; Silvercorp attributes the four-month delay to extended rainfall at site linked to the Super El Nino;
• Budget: $298.2-million (U.S.), a net increase of $14.6-million (U.S.) (approximately 5 per cent) from Silvercorp's Feb. 4, 2026, estimate of $283.6-million (U.S.) (the 2021 feasibility study budget was $248-million (U.S.)); gross increases of $24.4-million (U.S.) were partly offset by $9.8-million (U.S.) of reductions;
• Main cost increases: diesel fuel ($8.3-million (U.S.)), after Ecuador eliminated diesel subsidies; water management enhancements at the tailings storage facility (TSF) ($4.7-million (U.S.)); processing plant construction ($3.7-million (U.S.)) following execution of the plant construction contract; site power equipment and distribution ($2.4-million (U.S.)); and new items, including two reactive power compensators and other power items ($3.3-million (U.S.)) and additional water-control works at the TSF (approximately $2-million (U.S.));
• Offsetting reductions: $9.8 million (U.S.), including a $2.7-million (U.S.) reduction in contingency; Silvercorp notes that the contingency reduction is a lower allowance for future cost increases, not a direct cost saving; owner contingency of $14.3-million (U.S.) remains in the budget;
• Mining contract: open-pit mining and stripping have been awarded to China Railway 19th Bureau Group Co. Ltd. on a unit-cost basis, valued at $35-million (U.S.); the mining package budget has increased by $5-million (U.S.), of which $4.7-million (U.S.) relates to diesel;
• Power: construction of the substation at the El Domo site is under way; Silvercorp now reports that only construction of the substation has commenced and that construction of the external power line has been delayed pending further reviews and approvals from CNEL; Silvercorp's Oct. 19, 2026, news release, on which the company's news release of Oct. 27, 2026, was based, had reported that construction of the external power line had also commenced; 10 generator sets with a combined capacity of 17 megawatts have been manufactured and are ready to be shipped to site. Silvercorp notes that continued delays to the power line would require the project to rely on the generator sets for longer, which may increase operating costs.

Updated budget by package

Silvercorp's updated budget by package, compared with its Feb. 4, 2026, estimate and actual expenditures to Sept. 30, 2026, is summarized below (millions of U.S. dollars).

Construction progress

Silvercorp reported that site preparation for the process plant has been completed and that foundation and building work is in progress. Completion by area at Sept. 30, 2026, was as follows.

Most of the process plant equipment has been ordered, with down payments of approximately 30 per cent paid, and the prefabricated structural steel has been shipped from the factories. As previously reported by Silvercorp in its news release dated Oct. 19, 2026, the first batch of major long-lead-time equipment, including the mill, has arrived at port in Ecuador. Silvercorp identified the TSF and the non-contact water channel as the main sources of delay in the site preparation package.

Management commentary

Fredy Salazar, president and chief executive officer of Salazar Resources, stated: "Silvercorp has reset the schedule after an exceptionally wet season, and the process plant is now taking shape on site. Our 25-per-cent interest remains fully carried through to commercial production, and we are not funding any part of the increase. While El Domo moves towards production, we are drilling the Yumi veins at Tarqui, with Monja to follow in the new year."

Salazar exploration

While Silvercorp builds El Domo, Salazar is advancing its 100-per-cent-owned exploration portfolio. Drilling of the Yumi veins at the Tarqui-Quimi project began in October, 2026, with 1,500 metres planned and first results expected in early December, 2026. Drilling at Monja is scheduled to begin in January, 2027.

Source of information

The information in this news release about El Domo is taken from Silvercorp's news release dated Nov. 3, 2026, which is available under Silvercorp's profile on SEDAR+. Readers are referred to that release for full details of the updated budget and schedule. The company has relied on the information provided by the operator and has not independently verified it.

About Salazar Resources Ltd.

Salazar Resources is a Canadian junior exploration company focused on the discovery and development of mineral deposits in Ecuador. The company's strategy combines in-house geological expertise with a disciplined, systematic approach to project generation and advancement. Alongside a 25-per-cent interest in the Curipamba-El Domo copper-gold project, discovered by the Salazar team, currently under construction and fully carried through to commercial production, Salazar holds a 100-per-cent-owned exploration portfolio comprising the Monja, Santiago, Pijili, El Tigre and Tarqui-Quimi projects across multiple prospective copper-gold belts in Ecuador.

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