Mr. Mark Ayranto reports

SILVERCO PROVIDES ADDITIONAL INFORMATION ON THE AGREEMENT TO ACQUIRE NUEVO SILVER AND THE LA NEGRA MINE IN QUERETARO MEXICO

Silverco Mining Ltd. has provided further information regarding the previously announced transaction pursuant to the binding letter with Nuevo Silver Inc.

As previously announced on Jan. 20, 2026, Silverco is proposing to acquire Nuevo Silver, which has entered into a share purchase agreement, effective Jan. 18, 2026, with parties that are arm's length to Silverco and Nuevo Silver, to acquire 100 per cent of La Negra mine in Queretaro, Mexico, which is a producing silver mine.

Nuevo Silver does not currently hold title to La Negra mine, and it is a condition of closing of the acquisition that Nuevo Silver complete its purchase of La Negra mine.

Silverco will also be obtaining a technical report in respect of La Negra mine as a condition of closing of the acquisition. Nico Harvey, vice-president, project development, of Silverco, a qualified person for the purposes of National Instrument 43-101 (Standards of Disclosure for Mineral Projects) is unaware of any other material scientific or technical information on La Negra mine at this time.

Nuevo Silver and the subscription receipt financing

Nuevo Silver is a corporation existing under the laws of the Province of Ontario. To facilitate the acquisition of La Negra mine, Nuevo Silver issued 30,346,280 subscription receipts at a price of $1 (U.S.) per subscription receipt for total gross proceeds of $30,346,280 (U.S.). Nuevo Silver has no assets other than cash and its rights to acquire the operating La Negra mine under the SPA.

The financing was launched on Oct. 3, 2025,. and closed in tranches between November, 2025, and January, 2026, with over $29.5-million (U.S.) of the total financing amount (greater than 97 per cent) completed by Dec. 3, 2025. The aggregate proceeds of the financing have been deposited into escrow and are being held in trust by a third party pending the satisfaction of certain escrow release conditions in connection with the acquisition of La Negra mine. Each subscription receipt entitles the holder thereof to receive one common share of Nuevo Silver and will be automatically converted (for no additional consideration and with no further action on the part of the holder thereof) upon the satisfaction of certain of the escrow release conditions in connection with such acquisition. Other than the subscription receipts, there are no outstanding securities of Nuevo Silver convertible into Nuevo Silver shares.

No Silverco insiders are existing shareholders of Nuevo Silver or the vendors of La Negra mine. Mark Ayranto, Gary Brown, Tim Sorensen, Nico Harvey and Eric Sprott, all of whom are Silverco insiders, have participated in the financing, with their participation being, in the aggregate, less than 10 per cent of the total financing. Silverco insider ownership in Nuevo Silver following the conversion of the subscription receipts upon satisfaction of the escrow release conditions will be less than 5 per cent, with Silverco board and management representing less than 1 per cent.

Nuevo Silver's purchase of La Negra mine

The purchase price to be paid by Nuevo Silver for La Negra mine is composed of a combination of cash, Nuevo Silver shares and assumption of debt.

Negotiations between Nuevo Silver and the vendors of La Negra mine commenced in February, 2025, following which the parties negotiated the purchase price and agreed to terms in September, 2025. After completion of due diligence, the SPA was finalized and executed.

Silverco's acquisition of Nuevo Silver

As previously announced, Silverco will issue an aggregate of 16,802,316 common shares of Silverco to holders of Nuevo Silver shares to purchase Nuevo Silver under the acquisition, with approximately 61 per cent of such Silverco shares to be issued to holders of the subscription receipts. The acquisition is being proposed at a valuation that is higher than the purchase terms for La Negra mine that were negotiated by Nuevo Silver in September, 2025.

The increase in value of Nuevo Silver is directly attributable to the strong increase in silver prices, silver equities and the resulting cash flow potential at La Negra mine operations. In addition to the greater-than-$45-(U.S.)-per-ounce improvement in silver price since purchase terms were agreed between Nuevo Silver and the vendors in September, 2025, La Negra mine's operating cash flow potential is also benefiting from the final delivery of a $36-(U.S.)-per-ounce-silver forward sale contract in January, 2026.

The approximately 160-per-cent increase in Nuevo Silver's share price since the launch of the financing on Oct. 3, 2025, is slightly below Silverco's share price appreciation of 175 per cent since its first day of trading on Oct. 24, 2025.

The acquisition constitutes a fundamental acquisition as defined in TSX Venture Exchange Policy 5.3 (Acquisitions and Dispositions of Non-Cash Assets) and is a non-arm's-length transaction pursuant to exchange policies as a result of the Silverco insider participation in the financing.

As previously announced, closing of the acquisition is subject to a number of customary conditions, including all necessary consents, approvals and other authorizations of any regulatory authorities or third parties being obtained, including, without limitation, the conditional approval of the exchange; completion by Nuevo Silver of the acquisition of La Negra mine; completion by Silverco of due diligence and its assessment of the potential benefits to Silverco of the acquisition; receipt by Silverco of a technical report in respect of La Negra mine; receipt by the Silverco board of a favourable fairness opinion; and Silverco board approval. Disinterested Silverco shareholder approval will be sought if required pursuant to exchange policies. All securities issued pursuant to the acquisition are also subject to applicable escrow requirements pursuant to exchange policies. The vendors will also have a right after closing of the acquisition to nominate one person to the Silverco board.

Trading resumption

The common shares of Silverco will resume trading on the exchange tomorrow, Wednesday, Jan. 28, 2026.

Qualified person

All scientific and technical information in this news release has been reviewed and approved by Nico Harvey. Mr. Harvey is vice-president, project development, of the company, and is a qualified person for the purposes of National Instrument 43-101.

About Silverco Mining Ltd.

The company owns a 100-per-cent interest in the 11,665-hectare Cusi project located in Chihuahua state, Mexico. It lies within the prolific Sierra Madre Occidental gold-silver belt. There is an existing 1,200-ton-per-day mill with tailings capacity at the Cusi property.

The Cusi property is a past-producing underground silver-lead-zinc-gold project approximately 135 kilometres west of Chihuahua city. The Cusi property boasts excellent infrastructure, including paved highway access and connection to the national power grid.

The Cusi property hosts multiple historical silver-gold-lead-zinc producing mines each developed along multiple vein structures. The Cusi property hosts several significant exploration targets, including the extension of a newly identified down-thrown mineralized geological block and additional potential through claim consolidation.

We seek Safe Harbor.