HSLV Launches First Drilling at World’s Largest Permitted Silver Project
Highlander Silver Provides Update; Drilling Commences at Corani Silver Project
Highlander Silver Corp. (TSX, NYSE American: HSLV) (“Highlander Silver” or the “Company”) is pleased to provide a portfolio update following the successful completion of its combination with Bear Creek Mining (see press release dated February 26, 2026).
“Highlander Silver is well positioned to fast-track project advancement across its portfolio of high-quality silver assets. This includes a focus on high-impact exploration, project optimization, and site preparation for development of Corani, the largest fully permitted primary silver project in the world, as well as permitting at San Luis, one of the highest M&I resource grade projects in both the gold and silver sectors.
As of March 31, the Company had an unaudited cash balance of approximately US$100 million and no debt. The Mercedes gold-silver mine also made a positive cash contribution in its first month of operations following restructuring under our stewardship. We provide a summary of our baseline plans below and forecast a year-end cash balance of approximately US$60 million. This reflects a disciplined approach to spending that delivers on our core objectives while preserving flexibility to scale up our exploration programs later in the year.”
👤 Personnel
Carlos Ojeda appointed Vice President & General Manager — Mr. Ojeda has held increasingly senior roles leading teams of up to 500 people in engineering, construction, ramp-up and optimization at Anglo American’s major Quellaveco open pit mine in Peru, with prior experience at other major open pit mines in the country, including Antamina, Mina Justa and Constancia.
🔍 Exploration
The Company will provide a standalone exploration update later this quarter that includes early results from the exploration programs listed below:
- ✓ First-ever airborne magnetic survey totaling 620 line km, covering the majority of the land package — completed
- ✓ 54 km of planned 60 km induced polarization survey completed, with program expanded to 96 km to cover additional potential extensions interpreted from results
- ✓ First exploration drilling program in over a decade is now underway with the first of four planned rigs targeting high-impact exploration, resource growth, infill and oxide drilling, as well as technical drilling to support optimization studies
🏗 Site Preparation & De-risking
- ▶Earthworks for internal roads and platforms commenced
- ▶Camp and facility improvements underway
- ▶Long-lead-time equipment orders to be placed in late Q2/26
- ▶Substation construction underway; powerline to commence in late Q2/26
- ▶Access road rehabilitation underway; new road construction to commence in late Q2/26
📋 Studies, Consultants & Contractors
Updated Feasibility Study based on staged-development approach to be completed by end of Q3/26, aiming to maximize returns on a per share basis while mitigating capital expenditure, funding, timeline and execution risks.
Respected international and specialist-Peruvian consultants and contractors appointed for the majority of the main work packages:
| Work Package | Appointed Firm |
|---|---|
| Resource, Reserves & Mine Planning | MINSYS Mining Systems |
| Processing Plant & Infrastructure | Ausenco Engineering |
| Contractors | ApuCorp, Xplomine & CumbrEx |
👤 Personnel
Orlando Chumpitaz appointed Vice President & General Manager — Mr. Chumpitaz has held senior roles with leading companies operating major underground mines globally, including:
- Senior Mine Manager for Lundin Gold at its 5,000 tpd Fruta del Norte gold mine in Ecuador
- Project Manager for Endeavour Mining at its 6,000 tpd Mana Mine in Burkina Faso
- General Manager for Minera Volcan at its 5,500 tpd Animon mine in Peru
- Operations Director for Fortuna Mining at its 3,000 tpd San Jose mine in Mexico
🔄 Restructuring
- ▶Extinguished excessive gold stream and settled debt — Mercedes mine expected to generate free cash flow net of critical investments
- ▶Restored working capital, settled overdue payables, and in the process of settling minor unpaid taxes and establishing bonding program
- ▶Settled union agreements
📈 Recapitalization
Mercedes produced 30 koz of gold in 2025. Significant improvement across worker safety, production and operating costs are expected in the coming years with a rejuvenated workforce operating under the proven leadership of Mr. Chumpitaz.
Programs planned include:
- ▶Infill and definition drilling to support an improved reserve model
- ▶Accelerated mine development to improve access and enhance operational productivity
- ▶Upgrading critical infrastructure including ventilation, electrical systems, surface water management and underground pumping capacity
- ▶Geotechnical drilling and implementation of support systems to improve safety and reduce dilution
- ▶Cost assessment and right-sizing mine contractor deployment to enhance productivity
- ▶Tailings Management Facilities expansion to support mine life extensions
- ▶Resumption of greenfield and brownfield exploration campaigns across extensive land package in geologically favorable and prospective areas
On behalf of Highlander Silver,
“Daniel Earle”
President & CEO
Arun Lamba — Vice President Corporate Development
alamba@highlandersilver.com
Highlander Silver is a high-quality silver-growth company developing a portfolio of advanced-stage assets in Peru which includes the Corani silver project, the largest fully-permitted silver deposit in the world, and the bonanza-grade San Luis gold-silver project, which ranks among the 10 highest-grade projects globally in both gold and silver categories. The Company also operates the Mercedes gold-silver mine in Mexico. Highlander Silver’s major shareholders include the Augusta Group, Lundin family, and Eric Sprott.
Certain information contained in this news release constitutes “forward-looking information” under Canadian securities legislation. This includes, but is not limited to, forecasting a year-end cash balance of approximately US$60 million; updated Feasibility Study completion by end of Q3/26; expected free cash flow from the Mercedes mine; and the Mercedes recapitalization program. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause actual results to differ materially. The Company undertakes no obligation to update forward-looking information, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA’s President has purchased 125,000 shares of HSLV and can buy or sell shares at any time. This message is meant for informational and educational purposes only and does not provide investment advice.