Mr. David Stein reports

KUYA SILVER ANNOUNCES JOINT VENTURE AGREEMENT ON UMM HADID SILVER-GOLD PROJECT, SAUDI ARABIA

Kuya Silver Corp. has completed a joint venture agreement with Sumou Holding Company, the majority shareholder of Silver for Mining LLC, which holds the 246-square-kilometre Umm Hadid exploration licence in the Kingdom of Saudia Arabia.

Kuya Silver will maintain an active role in the management of the project providing technical and strategic expertise alongside its partner Sumou and the consultants and employees of Silver LLC. The joint venture agreement awards Kuya Silver a significant interest in the project in two parts: an immediate 5-per-cent non-dilutable (or carried) interest over the initial five-year work program and a strategic option to acquire an additional 40-per-cent participating interest, bringing its potential ownership to 45 per cent.

Firstly, Kuya Silver will maintain a 5-per-cent carried, non-dilutable interest in the joint venture company during the initial work program phase of the project, which correlates to the five-year work program committed in the making the winning bid awarded in January, 2024 (see Kuya Silver press release dated Feb. 15, 2024). It is estimated to entail approximately $20-million (U.S.) in exploration expenditures over five years from the granting of the licences (that is, June, 2029), including expenditures made to date.

Secondly, Kuya Silver retains a back-in right, up until April, 2027, to acquire an additional 40 per cent of Silver LLC by reimbursing 40 per cent of the expenditures made up to that point in time, to hold a total 45-per-cent interest in the project. From that point that the back-in right is exercised, the additional interest (that is, 40 per cent) will be participating and subject to dilution as additional expenditures are made, while the original 5-per-cent interest remains protected from dilution until the initial work program period is completed.

David Lewis, PGeo, Kuya Silver's vice-president, exploration, remarked: "I have had the pleasure of a site visit to the Umm Hadid property over the last few weeks to follow up on our now fully realized joint venture. The timing of this visit was especially fortunate, as we hosted a delegation of the Saudi Geological Survey, including the deputy minister of the Ministry of Industry and Natural Resources to the project area. We have completed two remote sensing surveys of the property to date, including a satellite-based hyperspectral survey (to identify mineral distribution) and a ground-based detailed magnetic survey (to identify rock types and structures). The property hosts a cluster of historic veins near some of these magnetic anomaly targets, and we have now identified several new veins, up to one metre wide in four-metre-wide zones and traceable for 600 m in some of the other targets. We expect to be drilling a first-pass, 5,000-metre drill program testing many of these targets starting in June, and I am looking forward to these results."

National Instrument 43-101 disclosure

The technical content of this news release has been reviewed and approved by David Lewis, MSc, PGeo, vice-president, exploration, with Kuya Silver, a qualified person as defined by National Instrument 43-101.

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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