All references to dollar amounts are references to U.S. Dollars, unless otherwise stated

Toronto, Ontario--(Newsfile Corp. - July 21, 2026) - Kuya Silver Corporation (CSE: KUYA) (OTCQB: KUYAF) (FSE: 6MR1) (the "Company" or "Kuya Silver") is pleased to report record quarterly production and provide an operational update for the second quarter of 2026 at the Bethania silver project, which again delivered record daily and quarterly production rates as the ramp-up continued to show significant progress during the quarter. Although the short-term progress at Bethania is encouraging, preparations are underway for upward step change in production later this year as additional underground development is completed.

Operational Highlights

• 5,097 metric tonnes of mineralized material mined at Bethania, a 66% increase quarter over quarter.
• Record 23,912 oz silver (30,559 silver equivalent) processed during the quarter.
• Record monthly production in June of 13,273 silver equivalent ounces as grades improved toward the end of the quarter.
• Continued strong underground development with record 437 meters advanced while drilling and blasting 1,535 metric tonnes of development material to support the expansion of underground mining operations.
• Silver production was 87% of the quarterly revenue from Bethania in Q2 with an average selling price of $72/oz.
• The Company continued to develop partnerships with local contractors to accelerate our exploration and mine development objectives.

Kuya Silver Delivers Steady Progress at Bethania in Q2

Production of mineralized material at the Bethania Project totalled 5,097 metric tonnes, another quarterly record and a 66% improvement over Q1 2026 as production continues to steadily ramp up. Development activities achieved total of 437 metres of underground advancement and 1,535 tonnes of development material in the quarter. Kuya Silver achieved a record daily production of 124 tonnes and a record monthly production of 2,040 tonnes (68 tpd) in Q2, as well as a monthly record for silver production (13,273 oz Ag eq.) demonstrating that the Company's methodical ramp-up process is generating positive results.

Silver recoveries averaged 79.7% during Q2 2026, directly reflecting the lower-grade development material and stope scheduling early in the quarter, which resulted in an average grade of 5.9 oz/t silver (8.8 oz/t or 274 g/t Ag equivalent). Mine sequencing optimizations implemented by the Kuya Silver team began delivering positive results mid-quarter. By June, silver grades increased to 6.66 oz/t exceeding management's expectations, and silver recoveries improved to approximately 82%. Kuya Silver has previously achieved silver recoveries exceeding 90% when processing higher-grade batches, the Company expects recoveries to continue improving toward these levels as the mine reaches steady-state production. Furthermore, Kuya Silver has launched a metallurgical testing campaign to further optimize recoveries.

In addition, Kuya Silver approved the installation of a dual-car hoisting winch system at Bethania, expected to be commissioned in October 2026. This infrastructure upgrade is expected to improve efficiency of the mine's ore extraction by enabling simultaneous haulage of two ore cars. This improvement will support the ongoing production ramp-up and provide flexibility and redundancy to materials handling as the Company advances the underground ramp project.

David Stein, Kuya Silver's President and CEO, stated, "The ramp up strategy to produce at the Bethania mine while taking on ambitious mine development to expand production to our Phase 1 target of 350 tpd has allowed the Company to generate significant revenue and reduce our burn rate. The revenue from mining operations on top of the Company's already strong balance sheet puts Kuya Silver in an excellent position, for the first time in our history, to deliver on its near-term production targets while at the same time expanding our exploration efforts to delineate more silver at the Bethania mine and the six other silver veins systems we control in the Bethania district."

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Table 1: Production highlights from the Bethania silver mine

^{(1) Information has been revised from amounts previously disclosed in the Company's press release dated April 22, 2026. The revisions relate primarily to the correction of previously reported production metrics.}

^{(2) prices for silver equivalent calculations use period ending spot prices and are as follows: June 30, 2026 $61/oz, lead $1,877/tonne, zinc$3,552/tonne Mar. 31 2026 silver $74/oz, lead $1,909/tonne, zinc$3,230/tonne June 30, 2025 $36/oz, lead $2,205/tonne, zinc$2,764/tonne Mar. 31 2026 silver $74/oz, lead $1,909/tonne Mar. 31, 2025 period; silver $34/oz, gold $3122.80/oz, lead $2,002/tonne, zinc $2,829/tonne.}

^{(3) includes only payable recovery i.e. lead in the silver- lead concentrate and zinc in the zinc concentrate and silver in both concentrates.}

^{(4) may include provisional settlements at the end of the period, net of treatment and refining costs.}

Developing Partnerships with Local Mining and Exploration Contractors

As part of its strategy to sustain production growth and expand exploration efforts at the Bethania project, Kuya Silver is in the process of onboarding up to three specialized contractors to support development, drilling and operations at the project. The underground drilling contract to operate three drill rigs at Bethania has been formally awarded to Safasermin S.A.C., an experienced Peruvian drilling and exploration contractor, pending the finalization of contract details. All three rigs are initially planned to operate underground at the Bethania mine; however, surface drilling is expected to be added and become a significant component of the drilling program during the second half of 2026.

Following a competitive bidding process, comprehensive site visits and final negotiations, Kuya Silver has issued a formal Letter of Award to Minera Tauro S.A.C. to perform additional underground development at the Bethania mine. The contractor has officially confirmed its acceptance. Pending final execution of the contract, Minera Tauro is expected to mobilize in the coming weeks to accelerate underground development. This partnership will allow Kuya Silver's in-house operations staff to focus on achieving greater production levels as the ramp-up continues.

Kuya Silver has also commenced portal development for the new internal ramp project and advanced a rigorous, competitive bidding process to shift the majority of the ramp development to a specialized mining contractor. Following comprehensive site visits and detailed evaluations of the project's technical data and Terms of Reference, Kuya Silver has finalized the receipt of complete technical and economic proposals from four highly respected mining contractors. The Company is currently evaluating the final submissions and expects to formally award the contract and mobilize the selected contractor shortly.

In parallel, Kuya Silver has completed a geomechanical assessment and ground-support design study for the ramp project, characterizing rock-mass conditions and establishing the optimal reinforcement system for each section of the planned corridor. This engineering work enables the Company to move directly from contractor award to mobilization without delay. The preparatory work is expected to provide greater confidence in both the execution timeline and the cost profile of this critical infrastructure investment.

Christian Aramayo, Kuya Silver's Chief Operating Officer, remarked, "At Bethania, our development decisions are driven by geology, not short-term price volatility. We are partnering with elite contractors and expanding our team to optimize development ahead of completing our Phase 1 ramp-up. We are committing to disciplined, high-return infrastructure, such as advancing our new internal ramp project, to unlock the deeper, and higher-grade vein structures within the Bethania system. Our strong balance sheet allows us to build our infrastructure the right way, ensuring we develop a safe and flexible operation, capable of maximizing the margin of every ounce we mine."

Camila Plant Update

Kuya Silver continues to process its mineralized material at the Camila Plant. The Company announced an LOI on January 27, 2026 (see press release) and plans to make a separate announcement.

Support for Local Districts and Earthquake Relief Efforts

While Kuya Silver's Bethania mine and infrastructure reported no measurable impact from the July 19th 5.5 magnitude earthquake in the Junin region, we recognize the severe toll this seismic event has taken on the surrounding towns and districts, particularly in the district of Chongos Bajo and the highly affected area of Chupuro. Kuya Silver extends its deepest sympathies to the people of Junin and is actively working to support recovery efforts.

As part of our commitment to our local workforce and neighboring populations, Kuya Silver is providing direct assistance to our employees who have family members in the affected areas. Furthermore, the Company is making direct donations to support the local emergency relief efforts.

For our partners, contractors, and stakeholders who wish to join these relief efforts, local institutions have established official donation reception centers to support the victims. Donations of drinking water, non-perishable food, warm clothing, and essential medicines are currently being received at the following collection point: Municipalidad Distrital de Chongos Bajo: Main municipal offices.

Quality Assurance and Quality Control

Quality assurance and quality control include two sampling procedures. Underground vein material from stopes are sampled to confirm vein grades and to reconcile against the mine model; and sampling of freshly mined material in stockpiles to determine dilution and the head grade that is sent to the processing plant.

Underground vein sampling was conducted systematically every 4 meters along the galleries. This involved excavating a narrow and continuous channel either parallel to the vein or perpendicular to its orientation. The entire volume of material excavated from the channel was collected as a sample.

Freshly mined material in the stockpiles and concentrate stockpiles were sampled using trenching, a method involving the excavation of narrow trenches perpendicular to the major axis of the pile. Trenches were systematically dug at regular intervals across all depths of the pile. The location of each trench was referenced to a topographic control point and recorded in the sampling log.

All material was carefully collected on plastic sheets, then pulverized at the mine site. The pulverized material was quartered, and one quarter was labeled and secured in vinyl sample bags. The samples were then transported to Dmtri I. Mendelejeff laboratory in Huancayo for processing using fire assay followed by atomic absorption spectroscopy (AAS).

All concentrate assay results are cross-checked against independent analyses conducted by the buyer. Furthermore, sample security protocols include sealed trucks for transporting run-of-mine (ROM) material and concentrate trucks with tamper-proof devices with safety seals, and a documented custody chain overseen by the mine superintendent (Bethania).

National Instrument 43-101 Disclosure

The technical content of this news release has been reviewed and approved by Mr. Kevin J. O'Connell, P.E., Independent Technical Advisor to of Kuya Silver and a Qualified Person as defined by National Instrument 43-101.

About Kuya Silver Corporation

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.

Reader Advisory

This news release contains statements that constitute "forward-looking information," including statements regarding the plans, intentions, beliefs, and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words "may," "would," "could," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect," "must," "next," "propose," "new," "potential," "prospective," "target," "future," "verge," "favorable," "implications," and "ongoing," and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking information. Investors are cautioned that statements including forward-looking information are not guarantees of future business activities and involve risks and uncertainties, and that the Company's future business activities may differ materially from those described in the forward-looking information as a result of various factors, including but not limited to fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing, and general economic, market, and business conditions. There can be no assurances that such forward-looking information will prove accurate, and therefore, readers are advised to rely on their own evaluation of the risks and uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

Neither the Canadian Securities Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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