CEO.CA Chairman's Briefing

Vancouver, British Columbia--(Newsfile Corp. - December 5, 2025) - Capitan Silver Corp. (TSXV: CAPT) ("Capitan" or "the Company") is pleased to report that is has completed an updated Mineral Resource Estimate ("MRE") for the Capitan Hill Oxide Gold Deposit ("Capitan Hill") at its Cruz de Plata silver-gold project, located in Durango, Mexico.

Highlights:

• New pit-constrained MRE defined for Capitan Hill is reported at a 0.18 grams per tonne ("g/t") gold (Au) cut-off grade, using a US$2,500 Au price

  • Inferred Mineral Resources of 39,795,000 Tonnes (t) at 0.41 g/t Au for 525,000 troy ounces (oz) of gold, represents a 115% increase in contained gold ounces compared to the historical block model and the previous MRE¹

  • The 2025 updated MRE produced an in-pit resource that represents 78% of all the block modelled gold ounces above the lower cut-off at Capitan Hill to date. Only in-pit ounces are reported as part of the MRE

  • The historical 2020 Capitan Hill MRE reported resources within 150m depth from surface using a cut-off of 0.25 g/t Au, which contained 20,722,000 t at 0.46 g/t Au for 305,000 oz of gold

  • To allow comparison of pit-constrained contained metal, a conceptual pit based on the 2020 historical MRE parameters and a US$1,500/oz gold price was created to constrain the historical 2020 Capitan Hill MRE. Within this conceptual pit shell, the historical 2020 Capitan Hill MRE contains 15,358,000 t at 0.50 g/t Au for 244,000 oz of gold, using a 0.25 g/t Au cut-off

• The Capitan Hill Gold Deposit is in addition to the Company's Jesus Maria Silver Trend and represents approximately 1% of the total Cruz de Plata project area

• Upcoming:

  • Approximately 2/3 of the expanded 15,000m drill program for 2025 has been completed with only 1/3 of the assay results released

  • Assay results pending for 31 drillholes, with drilling ongoing into Q1 2026

  • Property-wide geophysical survey initiated, results expected in Q1 2026

Alberto Orozco, CEO of Capitan Silver, commented:

"While silver remains our primary focus and the strongest driver of value at Cruz de Plata, the updated in-pit constrained gold resource at Capitan Hill adds real strength to the project. The growth we achieved with limited drilling highlights the quality of the system and the optionality it brings to our silver-focused district.

"It's also worth noting that our team has had tremendous success in the past with deposits like Capitan Hill, where we have advanced and built two similar projects — both on time and on budget, while creating meaningful shareholder value along the way."

Capitan Hill Mineral Resource Summary

During 2020 and 2021 Capitan completed a total of 12,209m of Reverse Circulation ("RC") exploration drilling in forty-nine (49) drillholes at Capitan Hill. The focus of this drill program was to expand the oxide gold mineralization along strike to the northwest and southeast, as well as down-dip to the southwest of the previous MRE. Additionally, infill drilling was completed along some section lines to help constrain the higher-grade mineralization that occurs along the volcanic-sediment unconformity (see Figure 1).

Figure 1: Simplified geological map and mineral system model, including new identified targets. 1. Jesus Maria Silver Trend (Containing the Jesus Maria, Santa Teresa and San Rafael veins), 2. Gully Fault zone, 3. Jesus Maria East Trend, 4. San Rafael West, 5. Jesus Maria Northwest, 6. Casco Norte, 7. La Providencia, 8. Jesus Maria Silver Trend North, 9. La Purísima, 10. Capitan Hill gold deposit, 11. El Tubo hill gold target

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Figure 2 below illustrates the impact that the 2020/21 drill program has had on the depth and definition of the Capitan Hill Gold Deposit since the program concluded. The figure on the left represents the historic limits of the 2014/15 drilling and the 2015 resource estimate (block model). The figure on the right illustrates the expanded footprint of the 2025 Capitan Hill MRE, showing a more complete interpretation of the mineralized zones, and an expanded footprint of the deposit at depth.

The historical 2020 Capitan Hill MRE¹ was not constrained by a pit shell and instead used a 0.25 g/t Au lower cut-off and a 150m depth-from-topography reporting constraint. For comparison purposes only, APEX Geoscience Ltd. ("APEX") generated a conceptual pit shell using the historical 2020 block model and the metal price and cost assumptions disclosed in the historical 2020 technical report. APEX estimates that approximately 244,000 ounces of contained gold as a historical Inferred MRE would have likely been reported within that conceptual pit shell (at the same 0.25 g/t Au cut-off). For comparative purposes, the updated 2025 Capitan Hill MRE, utilizing new drilling and modern parameters for Reasonable Prospects for Eventual Economic Extraction ("RPEEE") within a current conceptual pit shell, contains approximately 115% more contained gold ounces than the historical block model and MRE. This increase is attributable to updated geological interpretation/resource estimation based on new drilling, together with updated metal price and mining cost assumptions used to generate the current pit shell for pit-constrained reporting.

Compared to the historical 2020 Capitan Hill MRE, the updated 2025 Capitan Hill MRE applies updated reporting constraints aligned with demonstrating RPEEE (pit-constrained vs depth-constrained), and provides a solid foundation for Capitan Silver to build upon in terms of understanding:

• The limits of mineralization across the deposit
• The continuity and distribution of higher-grade mineralization
• Where and how to add additional ounces at the deposit and the project as a whole
• Guidance on how to upgrade portions of the resource to an indicated category

Figure 2: Cross section comparison: 2025 Capitan Hill MRE vs historical 2020 Capitan Hill MRE

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Mineral Resource modelling was conducted in UTM Coordinate system relative to the World Geodetic System 1984 ensemble / UTM zone 13N (EPSG:32613). The MRE utilized a block model with a size of 10 metres (X) by 5 metres (Y) by 5 metres (Z) to honour the mineralization wireframes for estimation. Gold and silver (Ag) grades were estimated for each block using Ordinary Kriging with locally varying anisotropy to ensure grade continuity in various directions is reproduced in the block model. The resource block model underwent several pit optimization scenarios using Deswik's Pseudoflow pit optimization. The resulting conceptual pit shell is used to constrain the reported open-pit resources. The reported open-pit resources utilize a cut-off of 0.18 g/t Au. The MRE is reported as undiluted.

The 2025 Capitan Hill MRE comprises an Inferred Mineral Resource of 525,000 oz of gold at an average grade of 0.41 g/t Au and 4,244,000 oz of silver at an average grade of 3.3 g/t Ag, within a total of 39,795,000 t. Table 1 provides the complete 2025 Capitan Hill MRE statement.

Table 1: Summary of the Pit-Constrained Inferred Capitan Hill Mineral Resources on the Cruz de Plata Project (as of September 17, 2025)

Notes:

1. Warren Black, M.Sc., P.Geo., Senior Consultant: Mineral Resources and Geostatistics of APEX Geoscience Ltd., who is deemed a Qualified Person as defined by NI 43-101 is responsible for the completion of the mineral resource estimation, with an effective date of September 17, 2025.
2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
3. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
4. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could potentially be upgraded to an Indicated Mineral Resources with continued exploration.
5. The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
6. Economic assumptions used include US$2,500/oz Au, US$26.5/oz Ag, process recoveries of 70% and 45% for Au and Ag respectively, a US$5/t processing cost, and a G&A cost of US$1.5/t.
7. The constraining pit optimization parameters include a US$2.5/t mining cost for both mineralized and waste material and 45° pit slopes. Pit-constrained Mineral Resources are reported at a cut-off of 0.18 g/t Au.

Table 2: Sensitivities of the Inferred Pit-Constrained 2025 Capitan Hill MRE (as of September 17, 2025)

Notes:

1. All tonnage, grade, and contained metal values in this table are reported within the optimized pit shell used to constrain the stated mineral resource estimate.
2. The cut-off grade used to report the stated pit-constrained mineral resource estimate is 0.18 g/t Au.

The current Mineral Resource Estimate for Capitan Hill will be fully documented in an independent Technical Report prepared in accordance with National Instrument 43-101 ("NI 43-101") to be filed on SEDAR+ and the Capitan website www.capitansilver.com within 45 days of this press release.

¹References made in this news release to the "previous" or "historical" Mineral Resource Estimate for Capitan Hill refer to the NI 43-101 Technical Report titled "NI 43-101 Technical Report on the Peñoles Gold-Silver Project Durango Mexico" dated January 12, 2020, prepared by Derrick Strickland, P. Geo. And Robert Sim, P. Geo. of Sim Geological Inc. The 2020 MRE is considered to be historical due to new drilling and the estimation of a new current MRE with more appropriate RPEEE parameters at this time.

New Oxide Gold Targets at Cruz De Plata

On October 1, 2025, Capitan provided an update on new silver and gold targets across its recently consolidated property package. This included the El Tubo Target area, which is located approximately 1.75km to the east-northeast of Capitan Hill (see also Figure 1).

The El Tubo target occurs along a similar, preserved portion of the volcanic-sedimentary unconformity that hosts Capitan Hill. Along this unconformity, plugs of rhyolitic porphyry dykes have intruded and created areas of brecciation and veining, that look very similar to the mineralization at Capitan Hill. Grab and chip sampling along these zones have returned anomalous gold grades ranging from 15ppb to 1.25 g/t. This zone of mineralization has been traced for approximately 1.1km along strike and has been traced in outcrop over a width between 2-10m where exposed. This area is considered to be at the drill ready stage, with shallow RC drilling planned in 2026.

Exploration Update: Jesus Maria Silver Trend

Exploration at Cruz de Plata continues to steadily progress into December 2025. Drilling is expected to continue until December 20, with an additional six to seven RC drillholes targeted for completion before the holiday break. Drilling (completed and planned) since November has focused on:

• The down-dip expansion of the Jesus Maria Silver Trend to the south of previously released holes 25-ERRC-21, 25 and 12
• Down-dip and down-plunge expansion of the new high-grade zone discovered in drillholes 25-ERRC-12 and 26
• A southwest-oriented drillhole to test the new Peñoles Fault target between drillholes 25-ERRC-17 and 12
• Drilling along strike (to the west) of the newly-discovered high-grade zone at drillhole 25-ERRC-17
• Follow-up drilling down-dip and along strike of the high-grade result returned from drillhole 25-ERRC-20
• New targets defined by high-grade surface samples, to the north and west of the San Rafael zone

Figure 3 illustrates the size of Capitan Hill in relation to the silver targets currently being targeted in the 2025 drill program. Overall, Capitan Hill, in terms of its surface expression, represents only 1% of the total property size at the Cruz De Plata project. The image below illustrates how target-rich yet underexplored the Cruz de Plata project remains. As of December 5, 2025, sixty (60) drillholes have been completed as part of the expanded 15,000m drill program at Cruz de Plata, with twenty-nine (29) drillholes released thus far, and the remaining thirty-one (31) drillholes pending assays.

Figure 3: Location and dimensions of Capitan Hill in relation to the surface expression of known high-grade silver zones at the Cruz de Plata project

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Qualified Person

The Mineral Resource estimate for the Capitan Hill Gold Deposit was carried out under the supervision of Warren Black, M.Sc., P.Geo., an employee of APEX Geoscience Ltd., and independent of Capitan. He is a "Qualified Person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects and has read and approved the contents of this news release as it pertains to the Mineral Resource estimate disclosed. Mr. Black is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect their respective Mineral Resource estimate.

High grades have not been capped. Capitan Silver field samples are sent to the Bureau Veritas Lab in Durango, Mexico for prep. RC Drill samples have been analysed using the following codes: MA300, 4-acid digestion, multi-element analysis (Vancouver Lab). Au is analyzed using Fire Assay (FA430, Durango Lab). Overlimit (>200 ppm Ag) assays utilize method MA370, with gravimetric utilized for any overlimit thereafter. QAQC: Capitan Silver maintains a rigorous QAQC program and inserts multiple standards, blanks and duplicates into the sample stream at regular intervals. Check Assays are performed at SGS laboratories in Durango, Mexico.

Metal Recovery: Ag 94%, Au 86%, Pb 93.5%, Zn 92%
AgEq considers Ag, Au, Pb and Zn and calculated as follows: AgEq = Ag g/t + (80x Au g/t) + (0.003 x Pb g/t) + (0.0037 x Zn g/t).

The scientific and technical data contained in this news release pertaining to the Cruz de Plata project was reviewed and approved by Marc Idziszek, P.Geo, a non-independent qualified person to Capitan Silver, who is responsible for ensuring that the technical information provided in this news release is accurate and who acts as a "qualified person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

About Capitan Silver Corp.

Capitan Silver is defining a new high-grade silver system at its Cruz de Plata project, located in the heart of Mexico's primary silver belt. The Company is led by a proven and accomplished management team that has previously advanced three projects into production, on time and on budget. The Company has been diligent in maintaining a tight share structure and has one of the tightest share structures among its peer group, with the top three shareholders owning over 38% of the Company's share capital. Capitan Silver is fully funded and actively drilling at its Cruz de Plata silver project.

ON BEHALF OF CAPITAN SILVER CORP.

"Alberto Orozco"

Alberto Orozco, CEO

DISCLAIMER FOR FORWARD-LOOKING INFORMATION

Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward-looking terminology (e.g., "expect", "estimates", "intends", "anticipates", "believes", "plans"). Such information involves known and unknown risks -- including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Capitan in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

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 release.

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