Caballo Blanco's Profitability and Growth

Arturo Préstamo Elizondo, Executive Chairman and CEO of Santacruz Silver Mining Ltd. (TSXV: SCZ) (OTCQX: SCZMF) (FSE: 1SZ), joins me unpack the decision to uplist onto the Nasdaq exchange in the US, and to delve into the details of Q3 2025 operational results across their portfolio of producing mines.

On October 28th, the Company announced that it has applied to list its common shares on the Nasdaq Capital Market (NASDAQ); as a significant milestone in Santacruz's growth strategy. We discussed how a big board US listing will increase transparency and liquidity to an expanded American shareholder base, and he explains the rationale for going with the NASDAQ over the NYSE.  In connection with the proposed listing, the Company will seek shareholder approval at the upcoming AGSM for, among other things, a consolidation of its common shares to meet Nasdaq's initial listing requirements, which include a minimum bid price of US$4 per share. 

We discussed that the share consolidation is for a positive reason and for listing requirements, which is much different than when cash-starved juniors typically roll back their shares to initiate further series of dilutive financings.  Santacruz Silver paid off their loan to Glencore in September, and is generating record revenues at current metals prices; so they are in a totally different financial position than a pre-revenue junior resource stock. Their motivation for the share consolidation is merely to meet the NASDAQ listing requirements.

We also get into a comprehensive review of all producing operations, as well as discussing future growth through exploration around current mines, development of Soracaya, and the potential for accretive acquisitions. Santacruz Silver operates 1 mine in Mexico, and 5 mines, 3 mills, and an ore feed-sourcing and metals trading business in Bolivia, as an emerging mid-tier silver and base metals producer.

On November 3rd, Santacruz Silver reported its Q3 2025 production results from its Bolívar mine, Porco mine, Caballo Blanco Group of mines and the San Lucas Group (which includes the Reserva Mina) and the San Lucas feed sourcing business, all located in Bolivia, and the Zimapan mine located in Mexico.

Q3 2025 Production Highlights:

• Silver Equivalent Production: 3,424,817 silver equivalent ounces
• Silver Production: 1,241,929 ounces
• Zinc Production: 21,581 tonnes
• Lead Production: 2,603 tonnes
• Copper Production: 331 tonnes

During Q3 2025, Santacruz maintained steady consolidated production, supported by strong operational performance from Caballo Blanco and San Lucas, which helped offset the lower silver production at the Bolívar mine. This third quarter captured the largest impacts of the water inflow event that first occurred at the Bolívar Mine in May 2025. Since then, their operations team has been actively working on strengthening the pumping system at Bolívar, with the fourth line commissioned in September and the installation of a fifth submersible line underway, which together will increase total pumping capacity to 340 liters per second (l/s). These improvements are facilitating the gradual dewatering and recovery of the affected zones in the Bolívar mine.  The Company expects production from the high-grade Pomabamba and Nané areas at Bolívar to resume in February 2026 and ramp up steadily through the remainder of the year.

In Mexico, Zimapán continued to deliver stable production, reflecting consistent plant throughput and recoveries. we discussed the higher-grade 960 Level at the Zimapan Mine starting to contribute, and how this will continue growing in the Q3 and Q4 production profile from Zimapan for the balance of this year and for many years into the future.

If you have any follow up questions for Arturo regarding Santacruz Silver, then please email those to me Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Santacruz Silver at the time of this recording, and may choose to buy or sell shares at any time.

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