Mr. Fredy Salazar of Salazar reports

SALAZAR SIGNS DEFINITIVE AGREEMENT FOR THE PURCHASE OF ECUADORIAN EXPLORATION PROPERTIES FROM SILVERCORP METALS INC.

Further to the news release of Dec. 23, 2024, Salazar Resources Ltd. (the company) and two subsidiaries of Silvercorp Metals Inc. have finalized and signed the definitive agreement pursuant to which the company is to acquire certain exploration assets in Ecuador from the Silvercorp subsidiaries. The company and Silvercorp are moving to close the transaction.

Under the terms of the definitive agreement, the key terms of which are outlined below, the Silvercorp subsidiaries will transfer the shares of two of Silvercorp's subsidiaries to Salazar, which subsidiaries hold interests in the following four mineral exploration properties in Ecuador in exchange for the following net smelter return royalties in such properties:

1. An 8-per-cent interest in the Santiago project in exchange for a 1.5-per-cent NSR royalty on the entire project, subject to a $3-million repurchase option;
2. An 8-per-cent interest in the Pijili project in exchange for a 1.5-per-cent NSR royalty on the entire project, subject to an option to repurchase two-thirds of this NSR royalty (a 1-per-cent NSR royalty) in exchange for $1-million;
3. A 10-per-cent interest in the Tarqui project in exchange for a 1.5-per-cent NSR royalty on the project, subject to an option to repurchase two-thirds of this NSR royalty (a 1-per-cent NSR royalty) in exchange for $1-million; and
4. A 10-per-cent interest in the Quimi project in exchange for a 1.5-per-cent NSR royalty on the project, subject to an option to repurchase two-thirds of this NSR royalty (a 1-per-cent NSR royalty) in exchange for $1-million.

Salazar currently owns 2 per cent of the Santiago and Pijili projects, and this transaction provides the company with full ownership of these projects. These properties were previously held under the exploration alliance agreement between Salazar and Adventus Mining Corp., a subsidiary of Silvercorp, which agreement will be terminated on closing. La Canela concession was excluded from the definitive agreement.

Fredy Salazar, chief executive officer, stated: "Finalization of definitive agreements was more complicated than anticipated, but I am very pleased we can now move forward to advance the properties acquired. The company plans to finalize an agreement for the farmout of the Tarqui and Quimi projects in return for work commitments, cash and equity. The company plans to retain an interest of at least 25 per cent. A non-refundable payment of $200,000 (U.S.) has been received from an Ecuadorean company, and this payment provided exclusivity. We will now move forward to finalize the definitive agreement."

About Salazar Resources Ltd.

Salazar is focused on creating value and positive change through discovery, exploration and development in Ecuador. The team has an unrivalled understanding of the geology in country and has played an integral role in the discovery of many of the major projects in Ecuador, including the two newest operating gold and copper mines. Salazar Resources has a wholly owned pipeline of copper-gold exploration projects across Ecuador with a strategy to make another commercial discovery and farm out non-core assets. Salazar Resources actively engages with Ecuadorean communities, and, together with the Salazar family, it co-founded The Salazar Foundation, an independent non-profit organization dedicated to sustainable progress through economic development. Salazar Resources already has carried interests in three projects. At its maiden discovery, Curipamba, Salazar Resources has a 25-per-cent stake fully carried through to production. At two copper-gold porphyry projects, Pijili and Santiago, Salazar Resources has a 2-per-cent stake and is to acquire the rest of such projects from Silvercorp pursuant to the transaction.

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