Mr. Eric Vanderleeuw reports

ZACATECAS SILVER CLOSES THE SECOND TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Zacatecas Silver Corp. has closed the second and final tranche of its previously announced non-brokered private placement (see news release dated July 14, 2026, and July 29, 2026) by issuing 14,639,941 units at seven cents per unit for gross proceeds of $1,024,795.87. Under the entire offering, the company issued a total of 35,714,142 units at seven cents per unit for gross proceeds of $2,499,989.94.

Each unit consists of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at an exercise price of nine cents for a period of two years from the closing date, subject to the company's right to accelerate the expiry date of the warrants if, following the expiry of the applicable hold period, the 20-day volume-weighted average trading price of the company's common shares on the exchange equals or exceeds 18 cents, by providing notice to warrantholders and press release, in which case the warrants will expire 30 days following the date of such notice.

Charles Hethey, a director of the company, subscribed for, indirectly through a corporation of which he has control, 300,000 units under the second tranche. Mr. Hethey's participation is considered to be a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company relied on the exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that the participation in the offering by Mr. Hethey will not exceed 25 per cent of the fair market value of the company's market capitalization.

In connection to the second tranche, the company paid total finder's fee of $4,256.42 and issued a total of 60,805 non-transferable share purchase warrants to finders. Under the entire offering, the company paid total finder's fee of $71,190 and issued a total of 1,016,999 finder warrants. Each finder warrant entitles the holder to purchase an additional common share at nine cents per common share at an exercise price of nine cents for a period of two years from the closing date, subject to the company's acceleration right.

All securities issued in connection with the offering will be subject to a four-month-and-one-day hold period from the date of closing under applicable Canadian securities laws.

Proceeds of the offering will be used to finance the company's planned maiden drill program at the Oso Negro project in Sonora, Mexico, following the recent completion of phase 2 rock chip sampling and vein mapping (see news release dated July 9, 2026), together with continued exploration across the company's six-project Mexican portfolio and general working capital.

About Zacatecas Silver Corp.

Zacatecas Silver is a multiasset precious metal exploration company with a portfolio of six projects across Mexico, spanning Zacatecas, Sonora, Morelos and Oaxaca.

The Zacatecas silver project is located in Zacatecas state, within the highly prospective Fresnillo silver belt, which has produced over 6.2 billion ounces of silver. The company holds 7,826 hectares of ground prospective for low-sulphidation and intermediate-sulphidation silver-base metal mineralization. A mineral resource estimate at the Panuco deposit comprises 3.41 million tonnes at 187 gram per tonne silver equivalent for 20.5 million ounces AgEq (see news release dated May 31, 2023). The property is 25 kilometres southeast of Mag Silver's Juanicipio mine and Fresnillo PLC's Fresnillo mine, and shares boundaries with Defiance Silver and Endeavour Silver.

Esperanza is an advanced-stage, attractive low-cost, low-capital-intensity and low-technical-risk growth project located in Morelos state, Mexico. The company announced a mineral resource estimate at Esperanza consisting of a measured and indicated mineral resource estimate of 45.4 million tonnes at 0.79 gram per tonne AuEq (0.76 g/t gold and 8.5 g/t silver) for 1.15 million ounces AuEq (1.11 million ounces gold and 12.37 million ounces silver) and an inferred mineral resource estimate of 11.2 million tonnes at 0.57 g/t AuEq (0.53 g/t gold and 11.2 g/t silver) for 208,000 ounces AuEq, 190,000 ounces gold and 4.02 million ounces silver (see news release dated June 22, 2026).

The company also holds four exploration properties in Sonora and Oaxaca. Oso Negro (Sonora) is an undrilled, high-grade low-sulphidation epithermal system with multiple veins across a two-kilometre strike length. Cumaro (Sonora) is situated along trend from Coeur Mining's El Picacho development and hosts extensions of proven low-sulphidation vein systems with high-grade channel sampling results. La Lola (Sonora) is a large, underexplored 1,183-hectare property anchored by La Barra vein, a five-kilometre structure reaching up to 40 metres in width. Ejutla (Oaxaca) comprises 10,603 hectares in the Taviche-Miahuatlan region near the former Fortuna Silver San Jose mine, hosting multiple vein systems and alteration zones anomalous in gold, silver and Carlin-style pathfinder elements.

Qualified person

The technical information in this news release has been reviewed and approved by Dr. Chris Wilson, BSc (honours), PhD, FAusIMM (CP), FSEG, FGS, chief geologist of Zacatecas Silver. Dr. Wilson is a qualified person as defined by National Instrument 43-101 and is not independent due being chief geologist and a director.

We seek Safe Harbor.