Silver Storm Commences Hot Commissioning of the La Parrilla Sulphide Circuit, Amends the Samsung Prepayment Agreement, and Secures US$5 Million Loan from First Majestic
TToronto, Ontario, July 14, 2026: Silver Storm Mining Ltd. (“Silver Storm” or the "Company") (TSX.V: SVRS | OTCQX: SVRSF | FSE: SVR) is pleased to announce the commencement of hot commissioning of the sulphide processing circuit at the Company’s 100%-owned La Parrilla Silver Mine Complex (“La Parrilla”) in Durango State, Mexico. Hot commissioning represents a stage in the commissioning process during which mineralized material is introduced into the processing circuit to test the circuit under real operating conditions.
Greg McKenzie, President and CEO, commented, “The start of hot commissioning of the sulphide circuit marks an important milestone for the Company. Reaching this milestone less than three years after closing the acquisition of La Parrilla is a tremendous achievement for the Silver Storm team. With the first doré pour from the oxide circuit completed recently and hot commissioning of the sulphide circuit underway, we are now in the final stages of the operational restart at La Parrilla.”
As part of the hot commissioning process, the sulphide processing circuit will use mineralized material from the high-grade sulphide stockpile. The feed for the sulphide circuit will continue to be sourced from the stockpile until underground development in the Quebradillas and Rosarios areas of the mine starts to provide access to run-of-mine mineralized sulphide material. The mineralized sulphide material will be utilized to produce a silver-rich lead concentrate and a zinc concentrate.
Amendment to the Samsung C&T concentrate prepayment agreement
Silver Storm, Samsung C&T Hong Kong Ltd. (“SSHK”) and QSSC, S.A. de C.V. (“QSSC”, and together with SSHK, “Samsung C&T”) have agreed to amend the concentrate prepayment agreement that was entered into among the parties (the “Prepayment Agreement”) by extending the grace period for the initial principal and arrangement fee payments under the Prepayment Agreement to September 2026 from May 2026, with each subsequent monthly repayment deferred by a corresponding four-month period. In addition, the related concentrate supply period has also been extended by six months to thirty months. All other terms of the Prepayment Agreement remain unchanged. The deferral helps to align Silver Storm’s obligations under the Prepayment Agreement more closely with the operations ramp-up plan at La Parrilla. For additional details on the Prepayment Agreement, please refer to Silver Storm’s news releases dated October 10, 2025 and November 4, 2025.
Non-dilutive loan financing from First Majestic Silver Corp.
First Majestic Silver Corp. (“First Majestic”) has advanced to Silver Storm a non-revolving unsecured term loan (the “Loan”) totaling US$5 million pursuant to the terms of a loan agreement entered into between the Company and First Majestic. Silver Storm intends to use the proceeds of the Loan to fund working capital related to ramping up operations at La Parrilla.
The Loan closed on July 10, 2026 (the “Closing Date”) and matures 36 months following the Closing Date (the “Maturity Date”) bearing interest at a rate of 15% per annum, compounded quarterly. Interest accrued during the first 12 months following the Closing Date is due and payable in full on the date that is 12 months following the Closing Date; thereafter, accrued interest is payable quarterly, together with each principal instalment described below, until the Maturity Date. The principal amount of the Loan is repayable in eight equal quarterly instalments of US$625,000, with the first instalment due 15 months following the Closing Date and each subsequent instalment due on the corresponding three-month anniversary thereafter, up to and including the Maturity Date. The Company may prepay the Loan, in whole or in part, at any time without penalty.
