Mr. Mark Ayranto reports

SILVERCO MINING BEGINS UNDERGROUND DEVELOPMENT AT CUSI, RESTART REMAINS ON BUDGET AND ON SCHEDULE

Silverco Mining Ltd. has provided an update on restart activities at its 100-per-cent-owned Cusi property in Chihuahua, Mexico. Overall restart progress is approximately 68 per cent complete and the company remains on budget and schedule to deliver first concentrate in Q4 2026.

Mark Ayranto, chief executive officer of Silverco, commented:

"The Cusi restart has moved from preparation into execution. Contractors and equipment are active underground, our first blast is now complete, our primary ventilation fans are on site and the Mal Paso plant is well past the halfway mark of its refurbishment. Importantly all of this work has been delivered safely with zero lost-time injuries. We remain on budget and schedule and our focus through the remainder of Q3 2026 is ramping up development, opening the San Miguel portal and finishing the plant refurbishment so that we can deliver first concentrate in Q4 2026 and exit the year with two producing silver mines in Mexico."

Restart highlights

• Zero lost-time injuries -- across 192,900 exposure hours worked by Silverco and contractor personnel at Cusi to date in 2026;
• On budget and schedule -- overall restart progress was approximately 68 per cent complete as of July 23, 2026. The Cusi restart capital budget and the company's targeted production milestones remain unchanged with an upfront capital of $19.2-million (U.S.) and first concentrate production targeted in Q4 2026;
• Contractors mobilized and active -- underground mining contractors are mobilized and active at both initial mining zones, Promontorio and San Miguel, with more than 240 Silverco and contractor personnel working at Cusi. Initial underground development equipment is on site and commissioned. Mobilization is now substantially complete;
• First development blast complete: The first underground development blast was recently completed along the main Promontorio ramp. Initial blasting is focused on slashing the main ramp to the widths required for efficient and productive operations;
• San Miguel portal on track -- preparatory works for the new San Miguel portal are continuing, including installation of ground support. The initial portal blast is expected imminently, following which ramp development will advance toward the San Miguel mineralized zones;
• Primary ventilation fans on site: the primary ventilation fans for Promontorio have been received at site. Foundations are complete and installation works are in progress, including drilling of service holes to route power cable to the substation that will supply the fans;
• Mal Paso plant refurbishment on track: refurbishment of the process plant is over 65 per cent complete. The crushing circuit is approximately 89 per cent complete, with work advancing across the grinding, flotation and laboratory areas;
• Exploration identifying opportunities within planned mine footprint: recent drill results (see June 16, 2026, and July 7, 2026, news releases) from the company's 30,000-metre program have reinforced the potential to define additional mineralization within or close to the planned mine footprint at Cusi. This presents an opportunity to enhance the mine plan early in the restart. Exploration drilling is continuing and will also target the high potential San Miguel and San Juan deposits.

Planned Cusi restart

As outlined in an April 13, 2026, news release, the Cusi project offers compelling economics based on the results from the 2026 PEA (preliminary economic assessment), which outlined a project with average annual silver equivalent production of approximately 2.5 Moz (million ounces) at site all-in-sustaining costs of $26.75 (U.S.)/ounce payable AgEq (silver equivalent) from 2028 to 2032, once fully ramped up. At an average base case silver price of $44.58 (U.S.)/oz, the after-tax NPV of Cusi is $104.1-million (U.S.) with an IRR (internal rate of return) of 94.8 per cent and a payback period of 0.9 year, and at $75.00 (U.S.)/oz, the after-tax NPV is $312.2-million (U.S.) with an IRR of 186.9 per cent and a payback period of 0.5 year. In addition to Cusi providing very near-term cash flow, the continuing exploration program has the potential to significantly enhance project economics early in the mine life. With 90 per cent of the revenue generated from silver and low upfront capital of $19.2-million (U.S.), Cusi represents a unique opportunity in the silver industry and for Silverco to advance its vision of becoming a 10-million-ounce-per-year silver equivalent producer within three years.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Nico Harvey, PEng, vice-president, project development, of Silverco, a qualified person as defined in National Instrument 43-101. Mr. Harvey is not independent of the company. Mr. Harvey has reviewed the technical information disclosed herein.

About Silverco Mining Ltd.

Silverco Mining is a Canadian silver producer focused on building a leading multiasset silver portfolio in Mexico. The company owns 100 per cent of the producing La Negra mine in Queretaro and the past-producing Cusi silver complex in Chihuahua, two established underground mining operations with significant infrastructure, exploration upside and district-scale land positions. The company is restarting Cusi in H2 2026, positioning Silverco to become a significant primary silver producer in the Americas in the near term.

Led by an experienced management team with a proven record in mine development, operations and capital markets, Silverco is focused on creating long-term shareholder value through disciplined growth and responsible mining practices, with a goal of becoming a 10-million-ounce-per-year silver equivalent producer within three years. Silverco's common shares trade on the TSX Venture Exchange under the symbol SICO and on the OTCQB under the symbol SICOF.

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