Mr. David Stein reports

KUYA SILVER ANNOUNCES CLOSING OF ADDITIONAL CONVERTIBLE FINANCING

Kuya Silver Corp. has closed a second tranche in connection with a convertible financing agreement with an investor, as disclosed in its news releases of Oct. 1, 2024, and Oct. 10, 2024. Under the terms of the agreement, the investor subscribed for, and the company issued, an additional unit comprising a secured convertible debenture of the company in the principal amount of $436,500 (face value of $485,000) and 560,595 common share purchase warrants of the company, exercisable at 37 cents until June 5, 2027. The additional debenture includes an original issue discount of 10 per cent in favour of the investor. The company received net proceeds of $436,500, less a 2-per-cent transaction fee to the investor and applicable closing costs.

The additional debenture matures 15 months from the date of issuance and bears an annualized interest rate of 8 per cent, calculated daily and paid quarterly in cash or in common shares of the company, at the option of the company. At the option of the investor, the principal amount of additional debenture (up to a maximum of $436,500), together with accrued interest on such principal amount, is convertible into common shares of the company at a conversion price equal to the closing price of the common shares on the Canadian Securities Exchange on the day prior to the conversion. The company may elect to repay all or part of the additional debenture prior to the maturity date at an amount equal to 110 per cent of the principal amount, plus accrued interest and interest to the end of the quarter in which the repayment was made. Upon receipt of a notice of repayment, the investor shall have the option to exclude up to one-third of the then outstanding principal amount of the additional debenture from such early repayment. The securities underlying the additional unit will not be subject to any statutory hold period under applicable Canadian securities laws. The proceeds of the financing will be used for mining operations at the Bethania project, Peru, and general working capital.

Subsequent to the disclosure in the company's interim consolidated financial statements for the period ended Sept. 30, 2024, an additional $200,000 of the debenture issued Oct. 9, 2024, was converted into common shares and, separately, the company repaid $48,500 in cash against the additional debenture. At the present time, the total loan principal remaining on the debentures relating to the agreement is $836,500.

About Kuya Silver Corp.

Kuya Silver is a Canadian-based, growth-oriented mining company with a focus on silver. Kuya Silver operates the Bethania silver mine in Peru, while developing district-scale silver projects in mining-friendly jurisdictions including Peru and Canada.

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