Cerro Bayo Drilling Yields 46m at 219g/t AgEq, Advancing Resource Upgrade

Robust Drilling Extends Mineralisation at Cerro Bayo

Andean Silver Limited has delivered a compelling update from its Cerro Bayo Silver-Gold Project in Chile, reporting strong drilling results that continue to expand and upgrade the mineral resource base. The recent campaign at the Laguna Verde Mine Complex has intersected some of the thickest mineralised zones within 500 metres of the processing mill, highlighting the potential for both open pit and underground mining operations.

The standout discovery is the Appaloosa Breccia, an emerging large-scale mineralised structure located just 100 metres from the mill. Drilling has revealed wide breccia zones with pervasive high-grade silver and gold mineralisation, including impressive intercepts such as 46.4 metres at 219 grams per tonne silver equivalent. This breccia hosts multiple mineralisation styles, including high-grade vein fragments that act as geological indicators of deeper, undiscovered shoots.

Temer Vein Complex Strengthens Resource Outlook

Meanwhile, the Temer vein complex continues to impress with ultra-high-grade intercepts, including a remarkable 0.8 metres at 4,131 grams per tonne silver equivalent. Located only 750 metres from the processing facility, Temer offers a low-cost pathway to production and is a key focus for the company’s restart plans. Drilling has also identified new hangingwall veins, expanding the known mineralised footprint and confirming the scale of this historically productive area.

Resource Growth and Upgrade Strategy

Currently, Cerro Bayo hosts a Mineral Resource Estimate of 9.8 million tonnes grading 353 grams per tonne silver equivalent, containing 111 million ounces of silver equivalent. Andean Silver is aggressively pursuing both resource growth and upgrading inferred resources to the more valuable measured and indicated categories. This strategy is critical to underpin the feasibility and restart studies underway, aiming to transition the project from exploration to production readiness during 2026.

Chief Executive Tim Laneyrie emphasised the company’s commitment to value creation through drilling, stating that the ongoing infill and extension drilling results will feed into an updated Mineral Resource Estimate expected in the coming quarter. He also highlighted the improved economic outlook given the sharp rise in silver and gold prices since the project acquisition, which enhances Cerro Bayo’s potential profitability.

Well-Funded to Accelerate Development

Andean Silver is well positioned financially, with approximately A$56.1 million in cash following a recent successful capital raising and Share Purchase Plan. These funds will support accelerated drilling, exploration, and restart study activities throughout 2026. The company is also considering increasing its drilling fleet beyond the current four rigs to meet its ambitious development timeline.

Looking ahead, Andean plans to advance feasibility-level work, including updated geotechnical and metallurgical studies, while continuing regional exploration to identify further growth opportunities within its extensive 330 square kilometre landholding in the Aysen region of southern Chile.