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CAPT: Intersects 1,833 g/t AgEq over 1.5m; Core Rig On-Site

What you need to know:
• CAPT reported assay results for an additional nine drill holes from its 2025 RC drill program at Cruz de Plata.
• Drilling was highlighted by an intercept of 1,833 g/t AgEq over 1.5m, drilled west of the Peñoles Fault.
• Additional assays outline extensions to the north-east and east as the Company continues to define mineralization within the silver system.
• Further, a core rig has arrived on-site as part of the 60,000m 2026 program, as CAPT continues to unlock the system’s substantial potential.
• We recently published a silver thematic which highlights the promising potential at Cruz de Plata (see our note here).

This morning, Capitan Silver (CAPT:TSXV) released assays for an additional nine holes from its 2025 RC Drill Program. Step-out drilling continues to intersect high-grade mineralization, with this morning’s release highlighted by an intersection of 1,833.1 g/t AgEq over 1.5m, within 340.4 g/t AgEq over 21.3m (25-ERRC-37), near the Peñoles Fault. Reported intercepts extend mineralization west, north-east, and up-dip to the east of the Fault, outlining the significant large-scale potential of the Jesus Maria Silver Trend at Cruz de Plata. This follows news yesterday that a core drill has arrived on site, joining the RC drill that carried out the 2025 program, as the Company commences its large 60,000m 2026 program. We are maintaining our BUY rating and target price of $3.50/share on Capitan Silver.

Highlight intercepts:
• 25-ERRC-37: 1,833.1 g/t AgEq over 1.5m, within 340.4 g/t over 21.3m.
• 25-ERRC-32: 1,254.8 g/t AgEq over 1.5m, within 157.3 g/t over 16.8m.
• SRRC-06: 381.4 g/t AgEq over 1.5m, within 153.6 g/t AgEq over 4.6.

Hole 25-ERRC-37 was drilled west of the Fault, expanding mineralization 20-80m down-dip and is one of the stronger intercepts reported by CAPT, while Hole 25-ERRC-32 outlines a north-easterly offset extension of the Peñoles Fault, down-dip from a previously reported intercept of 1,541 g/t AgEq over 1.5m (25-ERRC-20). Further, Hole SRRC-06 was drilled east of the Fault and extended mineralization ~200m up-dip toward surface. Importantly, mineralization remains open in all these target areas. The 2025 drill program continues to expand the system with each batch of drilling, and final assay results are still pending for 24 holes.

Yesterday, CAPT announced that it has mobilized a second drill rig to site, which is one of three core rigs planned for the 2026 campaign. We remind readers that this year’s 60,000m drill program is 4x larger than 2025’s, and drilling to date has been relatively shallow with the use of RC rigs. The core drill’s initial focus will be on expanding this newly defined high-grade silver zone discovered proximal to the Peñoles fault, including testing the system at depth.