Southern Silver Exploration Corp.

Southern Silver Exploration Corp. is a junior silver development company headquartered in Vancouver, Canada, operating primarily in Mexico. The company's portfolio consists of 1 development project, in addition to several early-stage exploration prospects. Key assets include Cerro Las Minitas. The company's business model centers on the acquisition, exploration, and subsequent development of natural resource properties. Value enhancement is pursued with the objective of disposition through sales agreements or advancement via third-party option and joint venture arrangements. Operational activities are heavily reliant on systematic exploration, including extensive drilling programs designed to define and expand mineralization. The organization utilizes comprehensive technical evaluations, such as Preliminary Economic Assessments, to demonstrate economic potential and de-risk assets for potential partners or acquirers. A key competitive advantage is holding assets that are not burdened by royalties, which presents potential financing opportunities. The enterprise also investigates technological improvements to reduce project expenditures, having conducted positive preconcentration test work which could lower both capital and operating costs on future developments.

Strategic priorities are focused on advancing a core asset portfolio while concurrently identifying and securing new properties. The approach to asset advancement involves systematic exploration, including infill and step-out drilling programs, to increase resource confidence, de-risk geology, and potentially add high-margin mineralization. Engineering and optimization studies are integral to the strategy, with efforts to improve mine scheduling, increase potential throughput, and refine processing circuits to enhance project economics. Growth is also pursued through acquisitions, as demonstrated by a recent letter agreement for a new property, which is subject to a due diligence period. The entity's long-term vision includes collaborating with experienced mining companies to develop properties toward production. Capital allocation relies on raising funds through the issuance of share capital to finance exploration, development, and administrative activities.

Governance is overseen by a Board of Directors, which includes an Audit Committee composed of 3 directors, 2 of whom are independent. This committee meets at least quarterly to review financial reporting and internal controls and has established a formal whistleblower policy. The organization's operational model relies on a small group of key personnel and leverages external service agreements with related parties for administrative, financial, geological, corporate development, and legal functions. Technical oversight for exploration and development programs is the responsibility of a designated Qualified Person, a professional geoscientist with a Master of Science degree and specialized experience in relevant deposit types. A key executive officer is entitled to termination benefits equal to 36 months’ compensation in the event of a change of control, highlighting retention mechanisms for senior leadership.

The corporate structure is actively managed through targeted acquisitions and divestitures. On January 31, 2025, the company entered into a letter agreement to purchase a 100% interest in the Nazas property, an arrangement subject to a 4-month due diligence period. A subsequent transaction on February 27, 2025, involved a share purchase agreement with Nickelex Resource Corporation to acquire its dormant subsidiary, Minera Reyterra, S.A. de C.V. Concurrently, the organization is streamlining its portfolio by liquidating another dormant subsidiary, Exploraciones Magistral S.A. de C.V., a process initiated in October 2024. During the reporting period, the company also sold certain non-core claims and, on September 9, 2024, relinquished 2 mineral leases to further optimize its asset base. The business model explicitly includes seeking third-party option and joint venture agreements to advance its properties.