Salazar Resources’ 25% El Domo Interest Remains Fully Carried Through Updated US$298 Million Construction Budget

Posted on November 5th, 2026 | Filed under Press Releases

Operator targets production in November 2027; US$90.9 million of Silvercorp-funded construction to date

Vancouver, British Columbia–(Newsfile Corp. – November 5, 2026) – Salazar Resources Limited (TSXV: SRL) (OTCQB: SRLZF) (FSE: CCG) (“Salazar” or the “Company“) reports that Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) (“Silvercorp“), the operator of the Curipamba-El Domo copper-gold project (“El Domo” or the “Project“), has updated the Project’s construction budget to US$298.2 million, an increase of US$14.6 million (approximately 5%). Salazar’s 25% interest in El Domo is fully carried through to commercial production, with no additional development or construction financing obligations. The Company is not required to fund any part of the budget increase.

More than half of the net budget increase, US$8.3 million, reflects higher diesel costs after Ecuador eliminated diesel subsidy. Silvercorp attributes the schedule change to extended rainfall at site. Silvercorp had spent US$90.9 million on construction to September 30, 2026, and the updated budget retains US$14.3 million of owners’ contingency. Silvercorp has stated that the production target is subject to, among other things, weather conditions and contractor performance, and that there can be no assurance that production will commence when targeted.

In its news release of October 27, 2026, the Company stated that it would report the updated schedule once the operator provided it. This news release fulfils that undertaking.

HIGHLIGHTS (AS REPORTED BY SILVERCORP IN ITS NEWS RELEASE DATED NOVEMBER 3, 2026)

Spending: US$90.9 million to September 30, 2026, with US$207.3 million remaining. The budget includes US$36.7 million of value added tax.
Schedule: production is now targeted for November 2027, four months later than previously planned. Silvercorp attributes the four-month delay to extended rainfall at site linked to the Super El Niño.
Budget: US$298.2 million, a net increase of US$14.6 million (approximately 5%) from Silvercorp’s February 4, 2026, estimate of US$283.6 million (the 2021 Feasibility Study budget was US$248 million). Gross increases of US$24.4 million were partly offset by US$9.8 million of reductions.
Main cost increases: diesel fuel (US$8.3 million), after Ecuador eliminated diesel subsidies; water management enhancements at the tailings storage facility (“TSF”) (US$4.7 million); processing plant construction (US$3.7 million), following execution of the plant construction contract; site power equipment and distribution (US$2.4 million); and new items, including two reactive power compensators and other power items (US$3.3 million) and additional water-control works at the TSF (approximately US$2.0 million).
Offsetting reductions: US$9.8 million, including a US$2.7 million reduction in contingency. Silvercorp notes that the contingency reduction is a lower allowance for future cost increases, not a direct cost saving. Owner’s contingency of US$14.3 million remains in the budget.
Mining contract: open-pit mining and stripping has been awarded to China Railway 19th Bureau Group Co., Ltd. on a unit-cost basis, valued at US$35 million. The mining package budget has increased by US$5.0 million, of which US$4.7 million relates to diesel.
Power: construction of the substation at the El Domo site is under way. Silvercorp now reports that only construction of the substation has commenced and that construction of the external power line has been delayed pending further reviews and approvals from CNEL. Silvercorp’s October 19, 2026, news release, on which the Company’s news release of October 27, 2026, was based, had reported that construction of the external power line had also commenced. Ten generator sets with a combined capacity of 17 MW have been manufactured and are ready to be shipped to site. Silvercorp notes that continued delays to the power line would require the Project to rely on the generator sets for longer, which may increase operating costs.

UPDATED BUDGET BY PACKAGE

Silvercorp’s updated budget by package, compared with its February 4, 2026, estimate and actual expenditures to September 30, 2026, is summarised below (US$ million):

Package	Feb 4, 2026 budget	Nov 3, 2026 updated budget	Spent to Sep 30, 2026	Remaining
Package #1 – Site preparation, roads, channels, TSF and SWD	57.4	57.2	26.7	30.5
Package #2 – Open-pit mining and stripping	35.0	40.0	2.4	37.6
Package #3 – Processing plant construction and equipment	54.8	62.2	14.1	48.1
Construction and permanent camps	7.0	6.3	3.2	3.1
Packages #4 and #5 – Site infrastructure (bypass roads, power line, standby diesel generators, water treatment plant)	45.4	49.3	16.6	32.7
Direct costs sub-total	199.3	215.1	63.0	152.1
Owner’s contingency	17.0	14.3	0.0	14.3
Owner’s cost	32.1	32.0	19.1	12.9
Value added tax (VAT)	35.2	36.7	8.8	27.9
Grand total	283.6	298.2	90.9	207.3

Totals may not sum due to rounding.

CONSTRUCTION PROGRESS

Silvercorp reported that site preparation for the process plant has been completed and that foundation and building work is in progress. Completion by area at September 30, 2026, was as follows:

Process plant area	Type of work	Completed at Sep 30, 2026
Fine ore bin	Foundations	92%
Dewatering plant	Foundations	86%
Laboratory	Building	78%
Warehouse	Foundations	75%
Office	Building	46%
Grinding and flotation	Foundations	45%
Oil depot	Foundations	35%
Thickener	Foundations	21%

Most of the process plant equipment has been ordered, with down payments of approximately 30% paid, and the prefabricated structural steel has been shipped from the factories. As previously reported by Silvercorp in its news release dated October 19, 2026, the first batch of major long lead-time equipment, including the mill, has arrived at port in Ecuador. Silvercorp identified the TSF and the non-contact water channel as the main sources of delay in the site preparation package.

MANAGEMENT COMMENTARY

Fredy Salazar, President and CEO of Salazar Resources, stated: “Silvercorp has reset the schedule after an exceptionally wet season, and the process plant is now taking shape on site. Our 25% interest remains fully carried through to commercial production, and we are not funding any part of the increase. While El Domo moves towards production, we are drilling the Yumi veins at Tarqui, with Monja to follow in the new year.”

SALAZAR EXPLORATION

While Silvercorp builds El Domo, Salazar is advancing its 100%-owned exploration portfolio. Drilling of the Yumi veins at the Tarqui-Quimi project began in October 2026, with 1,500 metres planned and first results expected in early December 2026. Drilling at Monja is scheduled to begin in January 2027.

SOURCE OF INFORMATION

The information in this news release about El Domo is taken from Silvercorp’s news release dated November 3, 2026, which is available under Silvercorp’s profile on SEDAR+ at www.sedarplus.ca. Readers are referred to that release for full details of the updated budget and schedule. The Company has relied on the information provided by the operator and has not independently verified it.

ABOUT SALAZAR RESOURCES LIMITED

Salazar Resources Limited (TSXV: SRL) (OTCQB: SRLZF) (FSE: CCG) is a Canadian junior exploration company focused on the discovery and development of mineral deposits in Ecuador. The Company’s strategy combines in-house geological expertise with a disciplined, systematic approach to project generation and advancement. Alongside a 25% interest in the Curipamba-El Domo copper-gold project, discovered by the Salazar team, currently under construction and fully carried through to commercial production, Salazar holds a 100%-owned exploration portfolio comprising the Monja, Santiago, Pijilí, El Tigre and Tarqui-Quimi projects across multiple prospective copper-gold belts in Ecuador.

For further information, please contact Nick DeMare, Director, at [email protected] or at 604-685-9316. Please also visit the Company’s website at www.salazarresources.com.

Investor Relations: Patrick Piette, Minera IR Inc., [email protected], 416-526-9911

FORWARD-LOOKING STATEMENTS

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, including statements about the development of the Curipamba-El Domo project, its construction budget and schedule, the targeted timing of production, the power supply to the Project and the absence of funding obligations for the Company. Forward-looking information is based on management’s current expectations and assumptions, including that the operator of the Curipamba-El Domo project will continue to advance and fund construction as described. Forward-looking information is subject to risks and uncertainties that could cause actual results to differ materially, including construction and commissioning risks at the Curipamba-El Domo project; weather conditions and contractor performance; further cost increases; delays in reviews, permits and approvals for the external power line and the associated risk of longer reliance on generator sets and higher operating costs; the Company’s reliance on information provided by the operator; metal prices; and regulatory and political conditions in Ecuador. There can be no assurance that production will commence when targeted. Readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking information except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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