Defiance Silver Signs Long-Term Access Agreement at Tepal

Rhea-AI Summary

Defiance Silver Corp has secured a significant six-year surface access agreement for its 100%-owned Tepal Gold-Copper Project in Michoacán, Mexico. The agreement allows the company to conduct surface exploration, drilling, and engineering studies. Additionally, Defiance has restructured its option agreement to acquire a 2.5% Net Smelter Return royalty at Tepal, with payments scheduled at USD$75,000/month from July 2025 to February 2026, increasing to USD$150,000/month from July 2026 through September 2027. The company has also secured an extension for the final payment of the San Acacio option agreement at its Zacatecas Silver-Polymetallic project, moving the due date from March 31, 2025, to June 30, 2026.

Positive

• Secured long-term surface access agreement for Tepal Gold-Copper Project enabling exploration and development activities
• Successfully restructured NSR royalty acquisition option with clear payment schedule
• Extended payment deadline for San Acacio property option without changes to economic terms

Negative

• Significant upcoming financial commitments with monthly NSR payments ranging from $75,000 to $150,000
• Delayed final payment for San Acacio property indicates potential cash flow management challenges

Vancouver, British Columbia--(Newsfile Corp. - June 3, 2025) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") is pleased to announce that through its subsidiary, Geologix Mexico S.A. de C.V., it has successfully secured a long-term surface access agreement (the "Agreement") for its 100%-owned Tepal Gold-Copper Project, located in Michoacán, Mexico.

Surface Rights Agreement Highlights
Under the terms of the six-year agreement, the Company has secured the right to conduct surface exploration, drilling, and engineering studies at the Tepal Gold-Copper project.

Chris Wright, Executive Chairman & CEO of Defiance Silver, commented:​

"Securing long-term surface access to the Tepal Project represents a key milestone event for Defiance. This is the first formal agreement with the surface landowner, and it provides the certainty we need to advance our exploration and development work, such as: detailed mapping, sampling, and drilling across the North, South, and Tizate zones, while also evaluating new targets within the broader project area."

Restructured Option to Acquire Royalty at the Tepal Project
Defiance is pleased to announce that it has successfully restructured the option agreement (See News Release dated January 16th, 2023) to acquire the 2.5% Net Smelter Return (NSR) royalty associated with its Tepal Gold-Copper project with the project vendor, Minera Tepal S.A. de C.V. The revised payment schedule for the NSR option agreement is USD$75,000/month starting July 1, 2025 through February 1, 2026, and then USD $150,000/month from July 1, 2026 through September 1, 2027.

Extension of San Acacio Option Payment
Additionally, the Company has secured an extension for the final payment of the option agreement on the San Acacio land package at its Zacatecas Silver-Polymetallic project. Defiance through its wholly owned subsidiary, Minera Santa Remy S.A., has, at the Vendor's request, agreed to extend the term of its option to acquire 100% of the San Acacio property in the Zacatecas district. As a result of this amendment, the scheduled payment due March 31, 2025, has now been changed to June 30, 2026 (See October 31st and December 20th, 2024 news for more details). The amendment was signed by both parties and is pending ratification in the presence of a notary public in Mexico City. There were no changes to the economic terms of the option agreement.

On behalf of Defiance Silver Corp.
"Chris Wright"
Chairman and CEO

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
Canada
V6C 0A3

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.

Cautionary Statements Regarding Forward-Looking Information

Information contained in this news release which are not statements of historical facts may be "forward-looking information" for the purposes of Canadian securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward looking information. Forward-looking statements are generally identifiable by use of the words "believe", "expect", "anticipate", "contemplate", "plan", "intend", "continue", "budget", "estimate", "may", "will", "schedule", "understand" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements relate to, among other things: the Company's ability to complete certain payments in relation to its Tepal and Zacatecas projects.

Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Defiance, are inherently subject to significant technical, political, business, economic and competitive uncertainties and contingencies, which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information. Factors and assumptions that could cause actual results or events to differ materially from current expectations include, among other things and without limitation: political risks associated with the Company's operations in Mexico; the inability of the Company and its subsidiaries to enforce their legal rights in certain circumstances; failure to establish estimated mineral resources; the possibility that future exploration results will not be consistent with the Company's expectations; and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. For additional risk factors, please see the Company's most recently filed Management Discussions & Analysis for its financial year ended June 30, 2024 available on SEDAR+ at www.sedarplus.ca.

There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known, and unknown could cause actual results, performance or achievements to vary or differ materially from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained herein or incorporated by reference. Accordingly, all such factors should be considered carefully when making decisions with respect to Defiance, and prospective investors should not place undue reliance on forward looking information. Forward-looking information in this news release is made as at the date hereof. The Company assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.

About Defiance Silver Corp.

Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (FSE: D4E) is an exploration and development 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 its 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/254398

FAQ

What are the key terms of Defiance Silver's surface access agreement for the Tepal Project?

The agreement is a six-year term that grants Defiance Silver rights to conduct surface exploration, drilling, and engineering studies at the Tepal Gold-Copper project in Michoacán, Mexico.

How much will DNCVF pay for the Tepal Project NSR royalty acquisition?

Defiance will pay USD$75,000 monthly from July 2025 to February 2026, then USD$150,000 monthly from July 2026 through September 2027.

When is the new deadline for Defiance Silver's San Acacio property final payment?

The final payment deadline has been extended from March 31, 2025, to June 30, 2026.

What exploration activities can Defiance Silver conduct at the Tepal Project?

The company can conduct detailed mapping, sampling, and drilling across the North, South, and Tizate zones, as well as evaluate new targets within the broader project area.