Mr. Jeffrey Reeder reports

PERUVIAN METALS FULL CAPACITY THROUGHPUT AT AGUILA NORTE PROCESSING PLANT IN 2025 AND FOCUSES ON SILVER AND GOLD FOR 2026

Peruvian Metals Corp. has released production results for 2025 at its 80-per-cent-owned Aguila Norte processing plant, located in Northern Peru. The company is also pleased to provide a summary of its core and non-core projects, which shows the company has a significant exposure to gold and silver in Peru.

During 2025, the plant processed a yearly record of 36,616 tonnes of third party mineral. Compared with 33,889 in 2024, 30,199 tonnes in 2023 and 29,667 tonnes in 2022, production has increased five straight years. The 2025 production represents an increase of 8 per cent compared with 2024. The plant was at full capacity during 2025. Plant expansion plans are currently being considered.

The company is currently planning its 2026 development and exploration programs for its 100-per-cent-owned properties. The 2026 development programs will also include the company's Mercedes property, in which the company has a 50-per-cent indirect interest. Development costs will be equally shared with its partner, Hudson Heartland. Permitting is well advanced at both Palta Dorada and Mercedes, allowing for extraction of mineral for processing. The company is also encouraged by the gold oxide mineral on both the Palta Dorada gold-silver-copper site and at the Aguila Norte plant site. Oxide material will be sold to local toll mills for immediate payment while the company plans to design a future carbon-in-pulp (CIP) plant. The company is currently conducting metallurgical studies at both Palta Dorada and Mercedes and will provide results once available. Sulphide mineral from Palta Dorada will be processed at the Aguila Norte plant, whereas mineral from Mercedes will be processed at a third party mill located 12 kilometres from the property site.

The company will start to review the gold-silver-copper veins located in and around the Aguila Norte plant in early 2026. The company received 54 tonnes of oxide gold material grading 5.31 ounces gold per tonne as a royalty from a small miner during 2025. The mineral was extracted from old workings located on the company's concession. The company successfully sold this mineral, showing potential profitability. Development plans are currently under way, which include portal locations, metallurgical work and topographic control. Assay results and a more detailed summary of the area are outlined in the company's press release dated Dec. 17, 2025.

Non-core properties of interest include the 100-per-cent-owned Minas Vizca and the Yanayco properties located in northern Peru. Both properties have significant silver and gold values. Minas Vizca was acquired in 2021 by application with the mining public registry. Assays from 10 samples taken from old stockpiles in four different areas ranged from 0.06 to 1.24 grams gold per tonne, 0.71 to 47.82 ounces silver per tonne, 0.34 per cent to 9.25 per cent lead and 0.13 per cent to 4.93 per cent zinc, averaging 0.49 gram gold per tonne, 12.93 ounces silver per tonne, 2.62 per cent lead and 1.68 per cent zinc (see the company's press release dated Nov. 10, 2021).

Yanayco, formerly called Pueblo de Oro, hosts a historic gold mine from 1980s. There exists an old mine working, which is extensive. Mining focused on folded brecciated quartzites belonging to the Chimu formation. The Chimu quartzites are excellent hosts for precious metal mineralization in northern Peru. Barrick's Alto Chicama mine and Zijin's La Arena mine are examples of this type of precious metal mineralization. The company believes Yanayco has the potential to be an underground high-grade operation similar to PPX Mining's Igor project in northern Peru.

Sampling in the old working returned up to 7.33 grams gold per tonne and 30.9 ounces silver per tonne in individual samples. In total, 36 random grab samples were taken underground and averaged 0.73 gram gold per tonne and 1.95 ounces silver per tonne. It is apparent that the gold-silver grade depends on the brecciation intensity. The old mine dumps returned anomalous results from grab samples ranging from four grams gold per tonne and 12.58 ounces silver per tonne. In total, 14 samples were collected from the old mine dumps and averaged 0.81 gram gold per tonne and 4.41 ounces silver per tonne.

In December, 2025, Peruvian Metals received 3,999,999 shares of Rio Silver Inc. for the sale of Minas Maria property. Rio Silver closed at 50 cents on Dec. 31. The company is pleased to be the single largest shareholder of Rio Silver.

"We are pleased to achieve several milestones during 2025. The company achieved record production at our Aguila Norte plant. With historic highs for gold and silver, we are making significant progress on permitting and metallurgical work on Palta Dorada and Mercedes properties. We will continue to review additional gold opportunities in northern Peru by moving into the Peruvian gold space, which is bolstered by the progress Palta Dorada. The acquisition is one of many catalysts and sources of material for a potential CIP circuit," commented Jeffrey Reeder, chief executive officer of the company.

Peruvian Metals has granted incentive stock options to various directors, officers and consultants to purchase up to 4.2 million common shares of the company on or before Jan. 6, 2029, at an exercise price of six cents per share, in accordance with its stock option plan and subject to regulatory approval.

Qualified person

Jeffrey Reeder, PGeo, is the qualified person, as defined in National Instrument 43-101, who has reviewed and approved the technical contents of this release.

About Peruvian Metals Corp.

Peruvian Metals is a Canadian exploration and mineral processing company. The company's business model is to acquire and develop precious and base metal properties in Peru and to provide clients with toll milling services and produce high-grade marketable concentrates from mineral purchases. The Aguila Norte processing plant has an environmental permit (IGAC) from the Peruvian government, which provides the company with the ability to expand operations past the current 100-tonne-per-day level.

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