Magma Silver CEO Letter to Shareholders

Core Viewpoint - Magma Silver has positioned itself for significant growth in 2026 following the acquisition of the Niñobamba silver asset in Peru, with plans for exploration and resource confirmation amid rising silver prices [1][9]. Group 1: Acquisition and Operations - In January 2025, Magma Silver acquired 100% control of the Niñobamba project, a primary silver asset in Peru, enhancing its leverage to silver prices [1]. - The company established operations in Peru and retained consultants to foster relationships with local communities, which is crucial for long-term success [2]. - Historical work by major mining companies indicated that Niñobamba could be a viable operation even at lower silver and gold prices, and recent field programs confirmed and exceeded these historical results [6]. Group 2: Financial Performance - Magma completed financings totaling $6.5 million in 2025, ending the year with over $5 million in treasury, indicating strong financial backing for future programs [3]. - The share price of Magma increased by 209% during 2025, reflecting positive market sentiment and investor interest [3]. Group 3: Exploration Plans for 2026 - The company plans to commence drilling at Niñobamba in Q1 2026, the first drilling since 2010, with ongoing surface sampling and geological mapping to identify high-potential targets [4]. - The anticipated low-cost open-pit operation at Niñobamba is expected to benefit directly from rising silver prices, enhancing profitability [9]. - The company aims to add compliant ounces to support the project's potential and create long-term value for stakeholders [4][10]. Group 4: Community Engagement and Investor Relations - Magma will continue efforts to engage with the strategic long-term investment community and maintain relationships with local communities, which are vital for successful operations [5].