Salazar Provides Update on the Construction of the Mine at the El Domo Project

El Domo’s construction is advancing on budget with strong project economics and stream financing in place, keeping commissioning targeted for July 2027.

Rhea-AI Summary

Salazar Resources (SRLZF) reports construction progress and updated economics for the Curipamba‑El Domo polymetallic project in Ecuador as of mid‑2026. Salazar holds a 25% fully carried interest, while Silvercorp owns 75% and operates the project.

The mine has Proven and Probable Mineral Reserves of 7.13 Mt containing 137.7 kt Cu, 584 koz Au, 187.7 kt Zn, 18.4 kt Pb and 11.0 Moz Ag, supporting an 11.5‑year life of mine. On a 100% basis, the after‑tax NPV is US$573 million at 8% and US$705.6 million at 5%, with a 45% IRR, ~3‑year payback, initial capex of US$283.7 million and total life‑of‑mine capital of US$373.5 million. Copper and gold recoveries are improved by 5.4% and 6.2% over the 2021 study.

Cumulative capex reached US$66.2 million by June 30, 2026. Construction is fully funded, supported by a US$175.5 million stream financing, of which about US$87.8 million has been received, and commissioning remains targeted for July 2027.

Positive

• After-tax NPV US$573m at 8% and US$705.6m at 5% on 100% basis
• IRR 45% with ~3-year payback and initial capex of US$283.7m
• Copper and gold recoveries improved by 5.4% and 6.2% versus 2021 FS
• Cumulative capex US$66.2m spent by June 30, 2026 on construction
• Stream financing US$175.5m total, ~US$87.8m received in two installments
• Commissioning target July 2027 with construction reported as fully funded

Negative

• None.

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Vancouver, British Columbia--(Newsfile Corp. - September 9, 2026) - Salazar Resources Limited (TSXV: SRL) (OTCQB: SRLZF) (FSE: CCG) ("Salazar" or the "Company") is pleased to provide an update on the Curipamba-El Domo polymetallic project ("El Domo" or the "Project"), located in the Bolívar and Los Ríos provinces of Ecuador. This update reflects the progress of the development and construction of the infrastructure, open pit mine, and processing plant at the El Domo Deposit (construction update last published in Salazar's Press Release dated February 5, 2026). Salazar retains a 25% carried interest in the Project, fully carried to production, and Silvercorp holds the remaining 75% interest and serves as the operator.

Management Commentary

"We have been following the ongoing construction at El Domo and are very pleased with the progress being made. Senior management of Salazar has just completed a site tour and have seen firsthand how the mine is developing. We look forward to the commissioning of operations targeted for July 2027," said President & CEO, Fredy Salazar.

PROJECT OVERVIEW

• Mineral Resource: Measured + Indicated (M+I) 11.4 Mt, grading 1.85% Cu, 2.11 g/t Au, 2.42% Zn, 0.22% Pb, and 41.69 g/t Ag. Inferred Mineral Resources 3.8 Mt, grading 0.46% Cu, 0.97% Zn, 0.13% Pb, 0.80 g/t Au, and 28.49 g/t Ag. Mineral Resources are reported inclusive of Mineral Reserves.
• Mineral Reserves (Proven + Probable): 7.13 Mt, grading 2.55 g/t Au, 47.82 g/t Ag, 1.93% Cu, 0.26% Pb, and 2.63% Zn.
• Contained metal in Mineral Reserves: copper (137.7 kt), gold (584 koz), zinc (187.7 kt), lead (18.4 kt), and silver (11.0 Moz).
• Refined flowsheet: Cu and Au recoveries improved by 5.4% and 6.2% respectively compared with the 2021 Feasibility Study.
• Life of Mine: 11.5 years (construction period excluded)
• Update on the Analysis of Economic Data for the El Domo Project (100% project basis):
  • After-Tax NPV: at 8% discount rate US$573 million, at 5% discount rate US$ 705.6 million
  • IRR (Internal Rate of Return): 45%
  • Nominal processing capacity: 666 ktpy (thousand tonnes per year)
  • Payback Period: ~3 years
• Initial Capital Cost: US$ 283.7M
• Sustaining Capital: US$ 72.5M; Closure Cost: US$ 17.3M; Total Life-of-Mine Capital: US$ 373.5M
• Life-of-Mine Operating Cost: US$ 416.3 million (US$ 58.39 per tonne milled)
• Mineral Reserves average NSR grade: US$ 312/t, reported above a US$ 55/t cut-off value
• Upside: approximately 8 million tonnes of additional mineralized material remain within the Measured & Indicated and Inferred Mineral Resource categories, representing potential to extend mine life

*Values as reported in the Company's News Release dated July 15, 2026, supported by the NI 43-101 Technical Report on the Curipamba-El Domo Polymetallic Project prepared by SRK Consulting (China) Ltd. for Silvercorp Metals Inc., with an effective date of December 31, 2025, filed on SEDAR+ on August 13, 2026: https://www.salazarresources.com/investors/regulatory-news/salazar-resources-files-ni-43-101-technical-report-for-the-curipamba-el-domo-project/. All Mineral Resource, Mineral Reserve, economic, capital and operating cost figures are presented on a 100% project basis; Salazar holds a 25% interest in the Project that is fully carried to production.

UPDATE ON EL DOMO MINE CONSTRUCTION (CONSTRUCTION PROGRESS AS OF JULY 31, 2026; FINANCIAL FIGURES AS AT JUNE 30, 2026):

Since construction began in January 2025, and through June 30, 2026, cumulative capital expenditures on the El Domo mine totaled US$66.2 million; including US$12.3 million invested during the three months ended June 30, 2026, compared with US$4.8 million invested in the same period of the prior year. Construction of El Domo is fully funded, and on July 31, 2026 Silvercorp received the second of four installments, in the amount of US$43.9 million, under the US$175.5 million stream financing agreement with Wheaton Precious Metals in respect of the Project, bringing total proceeds received under the agreement to approximately US$87.8 million; the Project remains on track for commissioning in July 2027.

The construction project for the El Domo mine consists of the following packages:

• Package 1: Site Preparation/Roads/Channels/Tailing Storage Facility/Saprolite Waste Dump/Temporary Camp/Permanent Camp
• Package 2: Open-pit mining and Stripping
• Package 3: Processing Plant Construction and Equipment
• Packages 4 and 5: Site infrastructure (bypass roads, external high-voltage power line, backup diesel generators, water treatment plant).

HIGHLIGHTS

• Commissioning of the operation is targeted for July 2027.
• The Temporary Camp is now finalized and operational.
• Earthworks excavation for the Permanent Camp continues and is advancing as scheduled.
• The non-contact water channel, foundation work for the processing plant and the initial dam for the tailing storage facility advanced, with approximately 604,600 cubic metres of earthworks excavation and fill completed during the three months ended June 30, 2026.
• The major equipment for the processing plant and water treatment station have been procured and are being shipped to Ecuador. The contract for the construction of the process plant has been concluded with the same contractor that built the flotation mill at the Mirador copper-gold mine in Ecuador.
• The open-pit pre-stripping commenced, with efficiency improved via equipment additions, expanded operational areas, and road upgrades; approximately 4.1 million cubic metres of pre-stripping is planned in total.
• The work force at site is growing as construction advances, of significance is the number of workers from communities near El Domo project and surrounding cantons.

EL DOMO PROJECT

Fig 1. Panoramic view of the El Domo Project construction areas

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4631/313543_a828146364943b8c_002full.jpg

Package 1 (Site Preparation/Roads/Channels/TSF/SWD/Camps)

Package 1 consists of Earthworks at Haul Roads, Processing Plant, Permanent Camp, Waste Rock Facility, Saprolite Waste Dump, Tailing Storage Facility, Water Treatment Pond Facility and Non-contact Water Channel. All components of this package are progressing as scheduled.

In addition to the internal access infrastructure work continues advancing external access infrastructure with improvements being made to roads and bridges allowing for much improved access to mine site.

Fig 2. Temporary camp fully operating

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4631/313543_a828146364943b8c_003full.jpg

Fig 3. Saprolite Waste Dump

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4631/313543_a828146364943b8c_004full.jpg

Fig 4 & 5. Progress in non-contact water Channel construction

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4631/313543_salazar-fig4-5.jpg

Fig 6. Tailing Storage Facility

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https://images.newsfilecorp.com/files/4631/313543_a828146364943b8c_007full.jpg

Fig. 7 Reconstruction of the bridge along the Echeandía-El Congreso-El Domo road, the main access route for heavy equipment.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4631/313543_a828146364943b8c_008full.jpg

Package 2 (Open-pit Mining and Stripping)

Earthworks have begun in the open pit with the Project's open-pit mining and stripping contractor. Stripping also progressed, with improved productivity thanks to the addition of more machinery, the expansion of work areas, and improvements to access roads.

Fig 8. Open-pit stripping

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4631/313543_a828146364943b8c_009full.jpg

Package 3 (Processing Plant Construction and Equipment)

Package 3 comprises the crushing workshop, conveyors, grinding and flotation workshop, dewatering workshop, laboratory and warehouse. All are progressing as scheduled.

Processing equipment and Package 3 steel structures have been procured and are being shipped to Ecuador. The construction contract for the processing plant was awarded to the same contractor that built the flotation mill at the Mirador copper-gold mine in Ecuador.

Fig 9. Processing plant foundation completed

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4631/313543_a828146364943b8c_010full.jpg

Packages 4 and 5 Site infrastructure (bypass roads, external high-voltage power line, backup diesel generators, water treatment plant).

Work is underway with an external contractor for the construction of the high-voltage power line to El Domo, which will support the project's future power requirements. In parallel, diesel generators are planned for installation near the processing plant to provide backup power capacity and ensure continuity of operations during the commissioning phase and subsequent operations.

Employment and Local Hiring

The site workforce continues to expand as construction progresses, with a significant proportion of workers coming from communities located near the El Domo Project and from surrounding cantons.

Qualified Person

The scientific and technical information in this news release relating to the Mineral Resource and Mineral Reserve estimates and the economic analysis for the Project is derived from the NI 43-101 Technical Report on the Curipamba-El Domo Polymetallic Project, prepared by SRK Consulting (China) Ltd. for Silvercorp Metals Inc., with an effective date of December 31, 2025. Ms. Yanfang Zhao (MAIG) was responsible for the Mineral Resource estimate and Mr. Falong Hu (FAusIMM) was responsible for the Mineral Reserve estimate.

About Salazar Resources

Salazar Resources Limited (TSXV: SRL) (OTCQB: SRLZF) (FSE: CCG) is a Canadian junior exploration company focused on the discovery and development of mineral deposits in Ecuador. The Company's strategy combines in-house geological expertise with a disciplined, systematic approach to project generation and advancement. Alongside a 25% carried interest in the Curipamba-El Domo copper-gold project, currently under construction, Salazar holds a 100%-owned exploration portfolio comprising the Monja, Santiago, Pijilí, El Tigre and Tarqui-Quimi projects across multiple prospective copper-gold belts in Ecuador. For further information, please contact Nick DeMare, Director, at ndemare@chasemgt.com or at 604-685-9316. Please also visit the Company's website at www.salazarresources.com.

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 news release.

Forward-Looking Statements

This news release includes forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. securities laws, including statements regarding the construction schedule, budget and expected commissioning date for the El Domo Project, expected timing of first commercial concentrate production, and the use of proceeds from the stream financing agreement. Forward-looking statements are based on the current expectations, estimates and assumptions of management as of the date of this news release and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated, including risks related to construction and development delays, fluctuating commodity prices, the availability of financing, regulatory and permitting matters in Ecuador, reliance on the Project operator and third-party contractors, community relations, and other risks associated with mineral exploration and development described in Salazar's filings available under the Company's profile on SEDAR+ at www.sedarplus.ca. Salazar does not undertake any obligation to update forward-looking statements except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/313543

FAQ

What ownership does Salazar have in the El Domo project and how is it funded for them?

Salazar holds a 25% interest in the Curipamba‑El Domo project, while Silvercorp owns the remaining 75% and is the operator. Salazar’s 25% interest is fully carried to production, meaning project development costs to that stage are funded without Salazar contributing its proportionate share.

How is the El Domo project construction being financed and how much stream funding has been received?

Construction is described as fully funded, supported in part by a US$175.5 million stream financing agreement with Wheaton Precious Metals. On July 31, 2026, Silvercorp received the second of four installments, for US$43.9 million, bringing total proceeds received under the stream to approximately US$87.8 million.

What is the planned processing capacity and operating cost profile for El Domo?

The nominal processing capacity is 666 thousand tonnes per year. Life‑of‑mine operating cost is estimated at US$416.3 million, or US$58.39 per tonne milled, on a 100% project basis.