Vancouver, British Columbia--(Newsfile Corp. - July 8, 2026) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") is pleased to announce that it has successfully completed the final option payment for the San Acacio mining concessions. This payment, executed through its wholly owned subsidiary, Minera Santa Remy S.A., grants the Company a 100% interest in the San Acacio property at its Zacatecas Silver Project, located in the historic Zacatecas silver district of Mexico.

The San Acacio property covers the historic, silver-rich Veta Grande vein system, which has a multi-century mining history. The vein system trends northwest-southeast through the property and outcrops in the western portion, with numerous historic surface and underground workings along a 2 km of strike length. The land package covers approximately 50% of the historic mine workings in the Veta Grande system, including adjacent ground considered prospective under modern exploration methods.

The Company is currently in the midst of completing a 10,000-metre drill program at the Zacatecas Project designed to confirm the extension of the known mineralized structures both laterally and vertically as well as to validate the current geological model that will be used for the upcoming Mineral Resource Estimate.

Exploration potential remains at depth, with the Veta Grande system extending to at least 335 metres and other district veins extending beyond 1 km. Historic data includes 10,234.6 metres drilled in 44 holes and 233 trench and chip samples, while a further 10,000-plus metres in 32 holes were completed between 2014 and 2019, testing the system at depth beyond previous programs, with several holes intercepting mineralization below prior limits.

Earlier work evaluated an open-pit scenario, while current efforts assess underground mining potential, and base metals, not studied in detail before 2019, represent an additional consideration. Securing 100% ownership consolidates this core asset of the Zacatecas Project under Defiance's direct control, ensuring that future exploration and any resource growth across the property accrue entirely to the Company.

TERMS OF SAN ACACIO PROPERTY AGREEMENT

Defiance has fulfilled its final acquisition obligations to the local vendor through a concluding payment of US$2,300,000 (plus applicable taxes). This milestone secures 100% ownership of the San Acacio mining concessions, a core component of the Zacatecas Silver Project.

In a strategic expansion of the project footprint, the Company has also acquired two additional surface land parcels within the concession area, totaling approximately 24 hectares.

• Final Payment: US$2,300,000.

• Net Smelter Returns (NSR): Per the original agreement, the vendor retains a 2.5% NSR on the property.

• Buy-back Provision: Defiance maintains the right to purchase the full 2.5% NSR for a total consideration of US$2,500,000.

EXECUTIVE COMMENTARY

"Securing 100% ownership of the San Acacio concessions is a transformative milestone that consolidates our core portfolio. With 100% interests now held across our Zacatecas, Tepal, and Green Earth projects, Defiance is positioned as a premier, unencumbered explorer in Mexico. This achievement reinforces our long-term growth strategy as we pivot immediately toward delivering an updated Mineral Resource Estimate at San Acacio."

- Chris Wright, Chairman & CEO

TENURE MAP OF THE ZACATECAS PROJECT

Map 1. Tenure Map of the Zacatecas Project: The figure delineates the Lucita and San Acacio areas, including their main vein systems, historic mine workings, drill collar positions, defined mineralized zones, and roads within and around the project.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2950/304342_2f138a9904cb88d1_001full.jpg

SHARES FOR SERVICES

The Company previously entered into a non-arm's length administrative services agreement dated May 1, 2023 (the "Agreement"), for services provided by an officer of the Company. As part of the consideration payable by the Company under the Agreement, the Company has agreed to issue that number of Common Shares equal to $1,330 per month (the "Service Shares"), to be issued on a semi-annual basis and pursuant to the policies of the TSX Venture Exchange (the "TSXV"). The Agreement was for a term of three months and has automatically renewed in accordance with its terms, terminable by either party providing 30 days' notice of such termination.

The deemed value of the Service Shares to be issued for a particular month, is to be the closing price of the Company's shares on the last trading day of the month.

For services rendered under the Agreement between the period of July 1, 2025, to December 31, 2025, the Company issued 33,839 Common Shares at a weighted average price of $0.238 per Common Share, extinguishing the accrued debt under the Agreement of $7,980. The transaction was subject to the approval of the TSXV.

The Service Shares issued are subject to a four-month hold period, which will expire on a date that is four months and one day from the date of issuance.

No new insiders will be created, nor will any change of control occur, as a result of the issuance of the Service Shares.

As certain insiders are parties to the Agreement, it may be considered a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders In Special Transactions ("MI 61-101") and the TSXV. The Company is relying on the exemptions from the formal valuation and the minority shareholder approval requirements of MI 61-101 contained in section 5.5 (a) and Section 5.7 (1)(a) as the fair market value of the Common Shares being issued to insiders in connection with the Service Shares does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.

ABOUT DEFIANCE SILVER CORP.

Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (FSE: D4E) is an exploration company focused on advancing district-scale precious and base metal projects in Mexico. The Company's portfolio includes: The Zacatecas Project in the historic Zacatecas Silver District, the 100%-owned Tepal Gold-Copper Project in Michoacán, and the Green Earth Metals property portfolio in Sonora State. Defiance is led by a proven management and technical team with experience advancing exploration assets through discovery and development. The Company is committed to capital-efficient exploration, disciplined growth, and responsible development.

On behalf of Defiance Silver Corp.

Chris Wright
Chairman of the Board

Disclaimer

Neither 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.

Caution 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. The words "believe", "expect", "anticipate", "contemplate", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule", "understand" and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things: the Company's expectations regarding the ability of the Mining Bureau of Mexico City to reinstate ownership of the concessions to the Company, cooperation with the Mining Bureau relating to such reinstatement and the potential for any successful solution resulting therefrom.

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. 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: the inability of the Company to regain possession of its concessions; political risks associated with the Company's operations in Mexico; the failure of the Mining Bureau in Mexico City to take any coercive action to reinstate ownership of the concessions to the Company; and the inability of the Company and its subsidiaries to enforce their legal rights in certain circumstances. For additional risk factors, please see the Company's most recently filed Management Discussions & Analysis for its quarter ended February 29, 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.

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