Mr. Michael Davies reports

DENARIUS METALS ANNOUNCES US$7 MILLION UPSIZING OF ITS PREPAYMENT FACILITY WITH TRAFIGURA TO FUND EXPLORATION AND THE ACCELERATION OF DEVELOPMENT ACTIVITIES AT ITS ZANCUDO PROJECT

Denarius Metals Corp. has upsized its prepayment agreement dated Feb. 7, 2025, with Trafigura Pte. Ltd. from $9-million (U.S.) to $16-million (U.S.). The additional financing of up to $7-million (U.S.) will be used by the company to finance the current exploration drilling campaign being carried out at the Zancudo project and toward the development of a new portal and 600-metre ramp at the Las Brisas-Manto Antiguo area to open access to new mining fronts in the Zancudo project for exploitation by mid-2027.

The company also announced today that it received $3.5-million in cash this week from Trafigura pursuant to the third advance available under the facility. This brings the total financing that the company has received to date under the facility to $9-million (U.S.), including $500,000 (U.S.) of interest that has been capitalized to the principal amount of the debt during the initial grace period ending June 30, 2026.

In April, 2024, the company signed a long-term commercial agreement with Trafigura for sale at market prices of 100 per cent of the high-grade gold-silver concentrates to be produced at Zancudo from its new 1,000 tonnes per day processing plant. In 2025, this offtake contract was amended to include the sale of crushed ore from Zancudo to Trafigura during the early production period up to the commencement of the plant operations. In April and May, 2026, mining rates have progressed, enabling the company to ship a total of 2,162 tonnes to a local port for sale to Trafigura. With grades averaging 11.4 grams per tonne gold and 222.3 grams per tonne silver, these shipments contained approximately 795 ounces of gold and 15,457 ounces of silver. Payable gold and silver for the first two months of the second quarter of 2026 amounted to 540 ounces and 5,580 ounces, respectively. In the first quarter of 2026, payable gold and silver were 593 ounces and 7,839 ounces, respectively. This brings the total for the first five months of 2026 to 1,133 payable ounces of gold and 13,419 payable ounces of silver. In 2025, payable gold and silver amounted to 333 ounces and 5,749 ounces, respectively.

The first and second advances under the facility totalling $5-million (U.S.) will begin to be repaid, with interest, from production over a 26-month period commencing July 1, 2026.

The aggregate amount of the third advance of $4-million (U.S.) will begin to be repaid, with interest, from production over a 20-month period commencing Jan. 1, 2027.

The fourth advance of up to $7-million (U.S.) may be drawn at the company's request in one or more tranches over the six months ending Dec. 31, 2026, and will begin to be repaid, with interest, from production over a 20-month period commencing Jan. 1, 2027. The amount available under the fourth advance is inclusive of interest capitalized on the third and fourth advances during the period from July 1, 2026, to Dec. 31, 2026.

In conjunction with the execution of the upsizing of the facility, the company has agreed to issue a total of three million common share purchase warrants to Trafigura with an exercise price of $1 (Canadian) per common share that will expire on Dec. 8, 2028. The Trafigura warrants are subject to a statutory four-month hold period and their issuance is subject to the final approval of Cboe Canada.

About Denarius Metals Corp.

Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of precious metals and polymetallic mining projects in high-grade districts in Colombia and Spain. Denarius Metals is listed on Cboe Canada, where it trades under the symbol DMET. The company also trades on the OTCQX market in the United States under the symbol DNRSF.

In Colombia, Denarius Metals is producing gold and silver in an early production phase at its 100-per-cent-owned Zancudo project while it completes construction of a 1,000-tonne-per-day processing plant that is expected to start producing high-grade gold-silver concentrates by the third quarter of 2026. The Zancudo project is a high-grade gold-silver deposit, which includes the historic producing Independencia mine, and is located in the Cauca belt, about 30 kilometres southwest of Medellin.

In Spain, Denarius Metals has interests in three projects focused on in-demand critical minerals. The company owns a 21.8-per-cent interest in Rio Narcea Recursos SL and is the operator of its Aguablanca project, which has been recognized by the European Union as a strategic project. The Aguablanca project comprises a turnkey 5,000-tonne-per-day processing plant and the rights to exploit the historic producing Aguablanca nickel-copper mine, located in Monesterio, Extremadura. Denarius Metals also owns a 100-per-cent interest in the Lomero project, a polymetallic deposit located on the Spanish side of the prolific copper-rich Iberian pyrite belt, approximately 88 kilometres southwest of the Aguablanca project, and a 100-per-cent interest in the Toral project, a high-grade zinc-lead-silver deposit located in the Leon province in northern Spain.

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