Mr. Michael Konnert reports

VIZSLA SILVER TO ACQUIRE LARGE SANTA FE CLAIM PACKAGE INCLUDING A PRODUCING MINE ALONG TREND AND IMMEDIATELY SOUTH OF PANUCO

Vizsla Silver Corp. has entered into an agreement to acquire the Santa Fe project, including both production and exploration concessions, comprising 12,229 hectares located to the south of the company's flagship Panuco project for a combination of cash and shares. The Santa Fe project benefits from permitted on-site production infrastructure, including an operating 350-tonne-per-day mill situated along the highly prospective Panuco/San Dimas corridor, and is covered 100 per cent with lidar and high-resolution aeromagnetic and radiometric surveys.

Highlights:

• Large property package comprising 12,229 hectares located 22 kilometres southeast from Panuco and immediately south of the recently acquired San Enrique prospect (see press release dated April 16, 2024);
• Fully permitted 350-tonne-per-day flotation plant that produces silver and gold from a northwest-trending epithermal vein;
• From 2020 through 2024, the Santa Fe mine processed 370,366 tonnes of ore at average head grades of 203 grams per tonne silver and 2.17 grams per tonne gold;
• The project area is covered 100 per cent with lidar and high-resolution aeromagnetic and radiometric surveys as well as detailed mapping and IP (induced polarization) geophysics around the mine area;
• Previous drilling campaigns completed by Aurico Gold and Fortuna Mining in 2014 and 2020, respectively, outlined the high-grade shoot currently being mined but also reported anomalous silver intercepts in four other target areas;
• The producing Santa Fe mine and known vein prospects identified to date account for approximately 12 per cent of the total property package.

"Vizsla Silver continues to expand its land position in western Mexico along the highly prospective Sinaloa silver belt with the acquisition of the producing Santa Fe mine," stated Michael Konnert, president and chief executive officer. "With an option agreement now in place on the Santa Fe production concessions, Vizsla Silver has the potential to bolster its overall production profile well beyond the 20.2 million ounces gold equivalent of initial annual production envisioned for Panuco project No. 1. This is supported by permitted operating infrastructure including a 350-tonne-per-day flotation plant and open-ended mineralized vein structures located right at surface. Furthermore, the mine production and historic drilling completed to date covers less than 12 per cent of the overall Santa Fe property package. With previous geophysical surveys highlighting at least four key target areas outboard of the underground mine, the Santa Fe exploration concessions provide Vizsla Silver with increased exploration upside along trend of known mining centres. Although we continue to be active in terms of corporate development, the company remains focused on delivering a feasibility study for Panuco in the second half of this year, with a goal of achieving first silver in the second half of 2027."

About the Santa Fe project

Mining at Santa Fe likely dates back to the Spanish era, based on a historic shaft and smelter furnace discovered by the previous operator, Eduardo de la Pena Gaitan, when he started mining historic waste dumps on the property in 2008. Approximately 20,000 tonnes of dump material containing approximately 2.0 grams per tonne gold and approximately 200 grams per tonne silver were trucked to the El Coco mill in Panuco for processing (personal communication, Mr. de la Pena).

Between 2008 and 2014, Mr. de la Pena staked additional claims around the original Santa Fe mine and in 2014 drilled the first 1,000 metres on the property. In 2014, Oro de Altar (ODA, a subsidiary of Aurico Gold) optioned the property and conducted a high-resolution airborne survey, detailed mapping of the mine area and drilled 11,957 metres in 45 diamond drill holes. Aurico's drilling delineated a high-grade shoot along the main Mother vein, which motivated Mr. de la Pena to construct additional mine infrastructure, including a six-kilometre-long power line in 2016 and, later, in 2018, a processing plant and underground mine. In 2020, Minera Cuzcatlan (a subsidiary of Fortuna Silver Mines Inc.) optioned the property and drilled 7,547 metres in 17 holes and completed a lidar survey. Between 2020 and 2024, the Santa Fe plant processed 370,366 tonnes of ore with average head grades of 203 grams per tonne silver and 2.17 grams per tonne gold (internal exploration and production reports provided by Mr. de la Pena).

Transaction terms

Option agreement -- production concessions

The company entered into an option agreement dated May 14, 2025, with Mr. de la Pena, on his own behalf and in representation of Margarita Gaitan Enriquez, Mariano Pablo Fuente Chapoy, Industrial Minera Tres Tortugas SA de CV, Grupo Tres Tortugas SA de CV, Industrial Minera Sinaloa, SA de CV and Inca Azteca Gold SA de CV. Under the terms of the option agreement, Vizsla Silver has the option to acquire a 100-per-cent interest in certain production concessions comprising the Santa Fe project over a five-year period.

The company may exercise the option by:

• Incurring exploration expenditures of $4-million (U.S.) on the production concessions according to the following schedule:
  • $500,000 (U.S.) within 24 months of the effective date of the option agreement;
  • An additional $500,000 (U.S.) within 36 months of the effective date;
  • An additional $2.5-million (U.S.) within 48 months of the effective date;
  • An additional $500,000 (U.S.) within 60 months of the effective date;
• Paying to the optionors a total cash consideration of $1.5-million (U.S.) according to the following schedule:
  • $300,000 (U.S.) within 12 months of the effective date;
  • An additional $300,000 (U.S.) within 24 months of the effective date;
  • An additional $300,000 (U.S.) within 36 months of the effective date;
  • An additional $300,000 (U.S.) within 48 months of the effective date;
  • An additional $300,000 (U.S.) within 60 months of the effective date;
• Issuing to the optionors 1,373,390 common shares in the capital of the company according to the following schedule:
  • 274,678 option shares within 12 months of the effective date;
  • An additional 274,678 option shares within 24 months of the effective date;
  • An additional 274,678 option shares within 36 months of the effective date;
  • An additional 274,678 option shares within 48 months of the effective date;
  • An additional 274,678 option shares within 60 months of the effective date.

All option shares will be subject to a hold period expiring four months and one day after their date of issue pursuant to applicable Canadian securities laws. In addition, the optionors have agreed to voluntary resale restrictions whereby one-third of the option shares will be released from voluntary resale restrictions 12, 24 and 36 months after their issue date. In addition to the voluntary resale restrictions, if at any time the optionors wish to sell or otherwise dispose of an amount equal to or greater than 20,000 shares in a single day or 100,000 shares over any five consecutive trading days, the company will have a right of first refusal to purchase such shares. The optionors must notify the company in advance of any such sale, and the company will have five business days to exercise its purchase right.

In addition, the company agreed to pay 50 per cent of the mining duties payable on the production concessions until the date that is 60 months after the effective date.

No finders' fees were paid on the arm's-length option agreement.

Purchase agreement -- exploration concessions

The company also entered into a purchase agreement dated May 14, 2025, with Mr. de la Pena. Under the terms of the purchase agreement, Vizsla Silver agreed to purchase certain exploration concessions comprising the Santa Fe project.

The company may complete the purchase by:

• Paying to the vendor a total cash consideration of $1,428,571 (U.S.) on the effective date of the purchase agreement;
• Issuing to the vendor 2,746,780 common shares in the capital of the company within 15 calendar days of the effective date.

All purchase shares will be subject to a hold period expiring four months and one day after their date of issue pursuant to applicable Canadian securities laws. In addition, the vendor has agreed to voluntary resale restrictions whereby one-third of the purchase shares will be released from voluntary resale restrictions 12, 24 and 36 months after their issue date. In addition to the voluntary resale restrictions, if at any time the optionors wish to sell or otherwise dispose of an amount equal to or greater than 20,000 shares in a single day or 100,000 shares over any five consecutive trading days, the company will have a right of first refusal to purchase such shares. The optionors must notify the company in advance of any such sale, and the company will have five business days to exercise its purchase right.

As part of the consideration under the purchase agreement, the vendor will receive from the company the processing plant known as the El Coco plant, including associated assets, in kind. The company will provide an inventory valuation of the El Coco plant within 30 days of the effective date.

In addition, the company agreed to pay 50 per cent of the mining duties due on the exploration concessions, which amount to approximately $394,682 (U.S.).

No finders' fees were paid on the arm's-length purchase agreement.

The option and purchase are subject to applicable regulatory approvals, including the approval of the Toronto Stock Exchange and New York Stock Exchange and the satisfaction of certain other closing conditions customary in transactions of this nature.

About the Panuco project

The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlan. The 7,189.5-hectare, past-producing district benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, roads, power and permits.

The district contains intermediate-to-low-sulphidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara formation.

On Jan. 6, 2025, the company announced an updated mineral resource estimate for Panuco, which includes an estimated in situ combined measured and indicated mineral resource of 222.4 million ounces gold equivalent and an in situ inferred resource of 138.7 million ounces gold equivalent (please refer to the company's technical report on updated mineral resource estimate and preliminary economic assessment for the Panuco silver-gold-lead-zinc project in Sinaloa state, Mexico, by Allan Armitage, Ben Eggers, Henri Gouin, Peter Mehrfert, James Millard, Sott Elfen and Jonathan Cooper, dated Feb. 20, 2025, and Vizsla's press release dated Jan. 6, 2025).

About Vizsla Silver Corp.

Vizsla Silver is a Canadian mineral exploration and development company headquartered in Vancouver, B.C., focused on advancing its flagship, 100-per-cent-owned Panuco silver-gold project located in Sinaloa, Mexico. The company recently completed a preliminary economic study for Panuco in July, 2024, which highlights 15.2 million ounces gold equivalent of annual production over an initial 10.6-year mine life, an after-tax net present value (discounted at 5 per cent) of $1.1-billion (U.S.), an 86-per-cent internal rate of return, and a nine-month payback at $26 (U.S.) per ounce silver and $1,975 (U.S.) per ounce gold. Vizsla Silver aims to become the world's leading silver company by implementing a dual-track development approach at Panuco, advancing mine development while continuing district-scale exploration through low-cost means.

Qualified person

In accordance with National Instrument 43-101, Dr. Jesus Velador, PhD, MMSA, qualified person, vice-president of exploration, is the qualified person for the company and has reviewed and approved the technical and scientific content of this news release.

Historical data disclosed in this news release relating to sampling results from previous operators are historical in nature. Neither the company nor a qualified person has yet verified these data and therefore investors should not place undue reliance on such data. The company's future exploration work may include verification of the data. The company considers historical results to be relevant as an exploration guide and to assess the mineralization as well as economic potential of exploration projects.

We seek Safe Harbor.