Silver Storm Advances La Parrilla with Sulphide Circuit Startup and New Financing

TSX.V: SVRS | OTCQX: SVRSF | FSE: SVR

Overview

Silver Storm Mining Ltd. announced on July 14, 2026, the commencement of hot commissioning of the sulphide processing circuit at its 100%-owned La Parrilla Silver Mine Complex in Durango State, Mexico. According to the company, hot commissioning represents a stage in the commissioning process during which mineralized material is introduced into the processing circuit to test the circuit under real operating conditions.

In conjunction with this operational update, Silver Storm also announced an amendment to its concentrate prepayment agreement with Samsung C&T and a US$5 million non-revolving unsecured term loan from First Majestic Silver Corp., which the company intends to use to fund working capital related to ramping up operations at La Parrilla.

Key Highlights

• Hot commissioning of the sulphide processing circuit at La Parrilla has commenced, using mineralized material from the high-grade sulphide stockpile as feed.
• The sulphide circuit is expected to produce a silver-rich lead concentrate and a zinc concentrate, according to the company.
• The feed for the sulphide circuit will continue to be sourced from the stockpile until underground development in the Quebradillas and Rosarios areas of the mine starts to provide access to run-of-mine mineralized sulphide material.
• Silver Storm, Samsung C&T Hong Kong Ltd. (SSHK), and QSSC, S.A. de C.V. have agreed to amend the concentrate prepayment agreement, extending the grace period for initial principal and arrangement fee payments to September 2026 from May 2026, with each subsequent monthly repayment deferred by a corresponding four-month period.
• The related concentrate supply period has been extended by six months to thirty months under the amended Prepayment Agreement; all other terms remain unchanged.
• First Majestic Silver Corp. advanced a non-revolving unsecured term loan of US$5 million to Silver Storm, which closed on July 10, 2026.
• The Loan matures 36 months following the closing date, bearing interest at a rate of 15% per annum, compounded quarterly.
• Interest accrued during the first 12 months is due and payable in full on the date that is 12 months following the closing date; thereafter, accrued interest is payable quarterly together with each principal instalment.
• The principal amount is repayable in eight equal quarterly instalments of US$625,000, with the first instalment due 15 months following the closing date.
• The company may prepay the Loan, in whole or in part, at any time without penalty.
• First Majestic beneficially owns, or exercises control or direction over, approximately 15.69% of the issued and outstanding common shares of Silver Storm on a non-diluted basis (approximately 18.26% on a partially-diluted basis), making the Loan a related party transaction under Multilateral Instrument 61-101.

Strategic and Operational Context

Greg McKenzie, President and CEO of Silver Storm, stated: "The start of hot commissioning of the sulphide circuit marks an important milestone for the Company. Reaching this milestone less than three years after closing the acquisition of La Parrilla is a tremendous achievement for the Silver Storm team. With the first doré pour from the oxide circuit completed recently and hot commissioning of the sulphide circuit underway, we are now in the final stages of the operational restart at La Parrilla."

The company stated that the deferral of the Samsung C&T Prepayment Agreement obligations helps to align Silver Storm's obligations more closely with the operations ramp-up plan at La Parrilla. The company noted it is relying on exemptions from minority shareholder approval requirements under sections 5.7(1)(a) and 5.7(1)(f) of MI 61-101 in connection with the First Majestic Loan, on the basis that neither the fair market value of the Loan nor the consideration for the Loan exceeds 25% of the company's market capitalization, and that the Loan was negotiated on reasonable commercial terms not less advantageous to the company than if obtained from an arm's-length lender. The Loan and its terms were reviewed and unanimously approved by the company's Board of Directors.

What to Watch Next

• Underground development in the Quebradillas and Rosarios areas is expected to eventually provide access to run-of-mine mineralized sulphide material to feed the sulphide circuit, according to the company.
• The first principal instalment of the First Majestic Loan (US$625,000) is due 15 months following the July 10, 2026 closing date.
• Initial principal and arrangement fee payments under the amended Samsung C&T Prepayment Agreement are now deferred to September 2026.

About Silver Storm Mining Ltd.

Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango State, Mexico. Silver Storm is committed to advancing toward a potential near-term restart of its 100%-owned La Parrilla Silver Mine Complex, a prolific operation comprised of a 2,000 tpd mill and three underground mines. The Company also holds a 100% interest in the San Diego Project which ranks among the largest undeveloped silver projects in Mexico. For more information regarding the Company and its projects, please visit our website at www.silverstorm.ca.

Read full press release here.

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