Defiance Silver Finalizes Long Term Access Agreement

Rhea-AI Summary

Defiance Silver Corp. has secured a crucial six-year access agreement for its Tepal Gold-Copper Project in Michoacán, Mexico. The agreement enables surface exploration, drilling, and engineering studies, along with data collection for permit applications. As compensation, the company will make inflation-adjusted annual cash payments and issue shares valued at US$40,000/year, with a total cap of 1.4 million shares over the term. For the first year, 201,452 common shares will be issued at C$0.27 per share, pending TSX Venture Exchange approval. Defiance Silver, listed on TSXV, OTCQX, and FSE, focuses on developing the Zacatecas Silver District project and the Tepal Gold/Copper Project in Mexico.

Positive

• Secured long-term access rights for 6 years enabling exploration and development activities
• Structured payment terms with both cash and shares, helping preserve cash position
• Annual share issuance capped at 1.4 million shares, limiting dilution
• Agreement enables permit application process advancement

Negative

• Additional share dilution through annual issuance worth US$40,000
• Ongoing cash payment obligations indexed to Mexican inflation

Vancouver, British Columbia--(Newsfile Corp. - June 16, 2025) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") is pleased to announce that it has finalized a six-year agreement that grants the Company the rights to conduct surface exploration, drilling, and engineering studies in support of its Tepal Gold-Copper Project located in Michoacán, Mexico (see news release dated June 3, 2025). The agreement also enables the Company to collect essential data required for the submission of permit applications to advance the development of the project.

As consideration for these rights, the Company will make annual cash payments, indexed to the annual rate of inflation in Mexico, and issue common shares with a total annual value of US$40,000/year to the surface rights holder. Over the six-year term, the total number of shares issued will not exceed 1,400,000.

For the upcoming year, the Company will issue 201,452 common shares at a deemed price of C$0.27 per share to the counterparty. This remains subject to approval of the TSX Venture Exchange.

On behalf of Defiance Silver Corp.

"Chris Wright"

CEO and Chairman of the Board

For more information, please contact:

Investor Relations
Tel: +1 (604) 343-4677
info@defiancesilver.com
www.defiancesilver.com
Suite 2900-550 Burrard Street
Vancouver, BC V6C 0A3
Canada

Disclaimer

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Defiance Silver Corp.

Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (FSE: D4E) is an exploration company advancing the district-scale Zacatecas project, located in the historic Zacatecas Silver District and the Tepal Gold/Copper Project in Michoacán state, Mexico. Defiance is managed by a team of proven mine developers with a track record of exploring, advancing, and developing several operating mines and advanced resource projects. Defiance's corporate mandate is to advance our projects through capital-efficient exploration focused on resource growth and new mineral discoveries.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/255669

FAQ

What are the key terms of Defiance Silver's (DNCVF) new access agreement?

The agreement grants six-year access rights for surface exploration, drilling, and engineering studies at the Tepal Project, requiring annual inflation-adjusted cash payments and share issuances worth US$40,000/year, capped at 1.4 million shares total.

How many shares will Defiance Silver issue in the first year of the agreement?

Defiance Silver will issue 201,452 common shares at C$0.27 per share for the first year, subject to TSX Venture Exchange approval.

What projects is Defiance Silver (DNCVF) currently developing?

Defiance Silver is developing the district-scale Zacatecas project in the historic Zacatecas Silver District and the Tepal Gold/Copper Project in Michoacán state, Mexico.

What is the maximum number of shares that can be issued under the access agreement?

The maximum number of shares that can be issued over the six-year term is 1.4 million shares.

Where is Defiance Silver's Tepal Gold-Copper Project located?

The Tepal Gold-Copper Project is located in Michoacán, Mexico.