Mr. Alberto Orozco reports

CAPITAN SILVER AMENDS ACQUISITION AGREEMENTS & GRANTS OPTIONS

Capitan Silver Corp. has amended its agreement to repurchase a royalty on its Cruz de Plata silver-gold project, located in Durango, Mexico. The net smelter royalty (NSR) is held by Exploraciones del Altiplano (Altiplano) entitling its owner an NSR of up to 2 per cent (see press release dated Jan. 13, 2022). The amendments have restructured the final payments to Altiplano, which totalled $1-million (U.S.) into three smaller payments over the course of a year. Upon signing of the amendment, a cash payment of $87,500 (U.S.) was made, with remaining payments to consist of 50 per cent cash and 50 per cent shares as follows: $200,000 (U.S.) in October, 2024, and $300,000 (U.S.) in April, 2025.

The company has also amended its option agreement to purchase the El Casco U property from Minera Fresnillo SA de CV, originally announced on Dec. 6, 2022. The amendment to the contract modified the second payment which was due in November, 2023, for $150,000 (U.S.), to May, 2024, which includes 3-per-cent interest for a total payment of $156,300 (U.S.), which has since been paid. No other changes or modifications have been made to the option agreement.

The company would also like to announce its first option issuance since September, 2020, granting an aggregate of 3.94 million options to officers, directors and consultants of the company at an exercise price of 20 cents for a period of five years in accordance with the company's stock option plan. The option exercise price represents a 25-per-cent premium to pricing of the company's most recent equity financing (See press release dated April 19, 2024). The options were issued pursuant to the terms of the company's stock option plan and the requirements of the TSX Venture Exchange.

About Capitan Silver Corp.

Capitan Silver is a well-financed junior exploration company focused on its 100-per-cent-owned Cruz de Plata gold-silver project in Durango, Mexico. The company is led by a management team that has successfully advanced and developed several heap-leach operations in Mexico over the past 16 years.

We seek Safe Harbor.