Defiance Silver Finalizes Long Term Access Agreement

Defiance Silver Corp. has successfully finalized a crucial six-year surface access agreement for its Tepal Gold-Copper Project in Michoacán, Mexico, marking a significant milestone in the project's development trajectory. The agreement grants comprehensive rights to conduct surface exploration, drilling, and engineering studies while enabling the collection of essential data required for permit applications to advance the project toward development.

Under the terms of the agreement, Defiance will make structured annual payments consisting of cash payments indexed to Mexico's annual inflation rate plus common share issuances totaling US$40,000 per year in value. The share component is capped at 1,400,000 shares over the six-year term, providing cost predictability while offering the surface rights holder participation in the project's potential upside. For the inaugural year, the Company will issue 201,452 common shares at a deemed price of C$0.27 per share, subject to TSX Venture Exchange approval.

This access agreement represents a strategic foundation for Defiance's broader development strategy across its Mexican portfolio, which includes both the Tepal Gold-Copper Project and the district-scale Zacatecas silver project. The secured surface rights eliminate a key development risk and provide the operational framework necessary to advance exploration activities and engineering studies that will inform future resource estimates and development planning.

The agreement's six-year duration provides sufficient time for comprehensive exploration and development activities while the inflation-indexed payment structure offers protection against currency devaluation risks in the Mexican market. This milestone positions Defiance to accelerate its capital-efficient exploration strategy focused on resource growth and new mineral discoveries across its diversified precious and base metals portfolio.