Core Viewpoint - Salazar Resources Limited is involved in a joint venture with Silvercorp Metals Inc. for the development of the El Domo mine, with an updated construction budget of $284 million, reflecting a $44 million increase from previous estimates, and a projected production start date of July 1, 2027, which is a six-month delay from earlier projections [2][3]. Financial Summary - The updated construction budget for the El Domo Project is $284 million, up from the previous estimate of $240 million [3]. - The budget breakdown includes significant increases in various packages, such as Package 1 (site preparation) increasing to $57.4 million and Package 3 (processing plant) increasing to $54.8 million [3][5]. - The VAT rate has been revised from 12% to 15%, leading to additional VAT costs that can be recovered as a tax credit once concentrate exports commence [5]. Construction Progress - In 2025, the company spent $44.5 million, which is approximately 16% of the total new budget, and made significant progress in site preparation and construction activities [6]. - Over 2.6 million cubic meters of material were moved for site preparation, and 8.1 km of internal haul roads were built [6][4]. - The construction camp with a capacity of over 600 beds has been completed and commissioned [6]. Contracting and Operations - The company is expected to execute a mining contract with China Railway 19th Bureau Group Co., Ltd. for the construction and operation of the Project, valued at $35 million for the construction phase and approximately $63 million for the operations phase [7]. - The contract includes the construction and management of the Tailings Storage Facility (TSF) dam, valued at $8 million [7]. Engineering and Equipment - Jinpeng is set to complete the detailed engineering design of the processing plant by early April 2026, which will initiate the bidding process for construction [8]. - Most long-lead time major equipment for the process plant has been ordered, with a down payment of $7.2 million made towards a total contract price of $16.9 million [16]. Community and Environmental Engagement - The company has engaged with various communities and stakeholders for support and has built an effective construction team collaborating across multiple locations [16]. - The company has implemented and complied with an Environmental Management Plan during construction activities, maintaining a strong safety culture with over 960,000 hours worked without major incidents [16].

Financing Details - Salazar Resources Limited closed a non-brokered private placement financing, raising gross proceeds of $1,430,498 by issuing 11,003,830 common shares at a price of $0.13 per share [1] - Finder's fees amounted to $15,600 in cash and 120,000 finder's warrants, each allowing the purchase of one common share at $0.13 for two years [1] - Net proceeds will be allocated to fund costs on the Company's resource properties and for general working capital purposes [1] Insider Participation - Certain insiders purchased an aggregate of 839,600 shares in the financing, which is classified as a "related party transaction" [3] - This transaction was exempt from formal valuation and minority shareholder approval requirements as it did not exceed 25% of the Company's market capitalization [3] - No directors expressed disagreement regarding the insider participation, and a material change report was not filed 21 days prior to the closing due to unconfirmed details at that time [3] Investor Relations Agreement - The Company entered into an investor relations and communications agreement with Baystreet.ca Media Corp, which will provide marketing services for an initial term of three months starting January 2026 [5] - Compensation for Baystreet will be $20,000 per month, with no securities issued as compensation [6] - The agreement is subject to approval by the TSX Venture Exchange [6] Company Overview - Salazar Resources Limited focuses on discovery, exploration, and development in Ecuador, with a strong understanding of the local geology [7] - The Company has interests in three projects, including a 25% stake in the Curipamba project and a 20% stake in the Pijili and Santiago projects [7] - Salazar Resources is committed to sustainable progress through economic development, co-founding The Salazar Foundation [7]

Core Viewpoint - Salazar Resources Limited has finalized a definitive agreement to acquire exploration properties in Ecuador from Silvercorp Metals Inc, enhancing its ownership in key projects and positioning itself for future growth [1][2]. Group 1: Transaction Details - The agreement involves the transfer of shares from Silvercorp's subsidiaries to Salazar, granting full ownership of the Santiago and Pijili Projects, which Salazar previously held a 20% interest in [2][7]. - The transaction includes a net smelter return (NSR) royalty structure, with Salazar acquiring an 80% interest in both the Santiago and Pijili Projects, and a 100% interest in the Tarqui and Quimi Projects, each subject to a 1.5% NSR royalty [6]. Group 2: Future Plans - The company plans to finalize an agreement for the farm-out of the Tarqui and Quimi projects, aiming to retain at least a 25% interest while receiving cash and equity in return for work commitments [3]. - A non-refundable payment of US$200,000 has been received from an Ecuadorian company, providing exclusivity for the upcoming agreements [3]. Group 3: Company Background - Salazar Resources is focused on exploration and development in Ecuador, with a strong understanding of the local geology and a pipeline of copper-gold projects [4]. - The company has a 25% carried interest in its maiden discovery, Curipamba, and is actively engaged with local communities through initiatives like The Salazar Foundation [4].

Core Viewpoint - The implementation of a new mining inspection fee by the Ecuadorian Control and Regulation Agency (ARCOM) aims to enhance oversight and combat illegal mining, but it poses a significant financial burden on mining companies, potentially harming the Ecuadorian mining industry and its investment reputation [1][3][5]. Company Summary - Salazar Resources Limited is required to pay approximately US$332,000 for its current concessions, with US$47,000 due in June 2025 and US$285,000 due in January 2026. This fee is about ten times higher than the company's annual concession fees in Ecuador [2]. - The company is actively collaborating with various chambers and associations in the Ecuadorian mining sector to communicate the detrimental impact of the new fee on the industry and the country's investment appeal [3]. - Salazar Resources has reached out to the Ecuadorian Government and is in discussions with the Mining Chamber of Ecuador to seek the rescindment of the regulation, while also exploring further actions [4]. Industry Summary - The new fee structure is viewed as unsustainable and is expected to hinder exploration activities, which are crucial for the mining industry's success. The CEO of Salazar Resources expressed concerns that this ruling could damage Ecuador's international reputation as a mining destination [5]. - The company emphasizes the importance of exploration in discovering new mineral deposits and believes that the fee will deter most exploration efforts in Ecuador [5].

Core Viewpoint - Salazar Resources Limited provides an update on the construction plan and schedule for the El Domo Project, which is a joint venture with Silvercorp Metals Inc. targeting production by the end of 2026 at an estimated cost of $240.4 million, slightly lower than the previous estimate of $247.6 million from the 2021 feasibility study [1][3][24]. Group 1: Joint Venture and Ownership - Silvercorp holds a 75% interest in the joint venture for the El Domo mine, while Salazar has a 25% carried interest [2]. - Once commercial production is achieved, Silvercorp will receive 95% of the dividends until its investment is recouped, after which dividends will be shared on a 75%/25% basis [4]. Group 2: Construction and Cost Estimates - The total estimated capital cost for the El Domo Project is $240.4 million, with a breakdown of costs across various packages [3][24]. - The construction schedule includes significant expenditures in fiscal years 2026 and 2027, with direct costs totaling $159.4 million, VAT at $19.1 million, and contingencies at $31.9 million [6][24]. Group 3: Detailed Engineering and Infrastructure - Advanced detailed engineering has been conducted for the tailings storage facilities, open pit mine design, and project infrastructure, with contracts awarded for site preparation [7][8]. - The construction of a power line and standby diesel generators is also in progress, with the power line expected to be completed in 13-17 months [16]. Group 4: Mining and Production Plans - The joint venture plans to commence stripping of the open pit in August 2025, with an estimated 5.4 million cubic meters of sediments and waste rocks to be stripped [12]. - By the end of 2026, the project expects to produce 43,000 tonnes of ore, with 550,000 cubic meters of ore ready for mining [12]. Group 5: Cost Comparison and Adjustments - The updated cost estimates reflect a reduction of $32.6 million in direct costs compared to the 2021 feasibility study, attributed to savings from employing a unit cost contract and detailed engineering [24]. - The contingency costs have increased by $9.9 million, while owner's costs have risen by $20 million [24].