Acquisition of Joaquin Silver District Completes

Unico Silver Limited (“USL” or the “Company”) refers to the announcement on 20 August 2024 regarding the proposed acquisition of Minera Joaquin S.R.L, the 100% owner of the mineral claims that make up the Joaquin project, and the 100% acquisition of the mineral titles that make up the Cerro Puntudo project (collectively the “Joaquin Project”).

Following the satisfaction of all required approvals and consents, and execution of final definitive legal agreements between Pan American Silver Corp. (“PAAS”) and USL, the Company is pleased to advise that it has completed the acquisition of the Joaquin Project.

HIGHLIGHTS

• 100% acquisition of two contiguous properties (Joaquin and Cerro Puntudo) totalling 35,G46Ha.
• Joaquin contains a historical Foreign Estimate¹ of 16.7Mt at 136gpt silver equivalent (AgEq²) for 73Moz AgEq (68Moz Ag, 64koz Au) in the La Negra and La Morocha deposits.
• Strategically located 60km west of USL’s G1Moz AgEq Cerro Leon resource² and portfolio, enhancing future development options, with added scale and economics.
• Historical Foreign Estimates exclude adjacent Cerro Puntudo mineral properties which host the along strike extensions of the La Negra and La Morocha deposits.
• USL is planning a comprehensive exploration program on four advanced prospects, aiming to boost current Foreign Estimates and publish a maiden JORC (2012) MRE.
• Historical drill holes that fall outside the current resource:
  • La Negra Feeder: 4.5m at 16GGgpt Ag, 22gpt Au from 272m
  • La Negra Extension: 3m at 2723gpt Ag, 4.1gpt Au from 54m
  • La Morocha Extension: 8m at 226gpt Ag, 0.5gpt Au from 189m
• Cerro Puntudo is host to numerous vein targets (Brunilda, La Esmeralda, Isabella) with high silver gold values at surface that are untested by drilling.
• The transaction includes camp infrastructure and a mining and access agreement valid until 2034.
• Upfront consideration of USD$2m funded from existing cash reserves, with future payments of USD$2m on publication of an economic study supporting a mineral resource at the Joaquin project and USD$8m on commercial production.

Cautionary Statement

(a) The estimates of mineralisation included in this announcement are foreign estimates and are not reported in accordance with the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code) and is a “Foreign Estimate”

(b) A Competent Person has not yet done sufficient work to classify the Foreign Estimate as Mineral Resources or Ore Reserves in accordance with the 2012 JORC Code.

(c) It is uncertain that following evaluation and/or further exploration work that the Foreign Estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code 2012.

Figure 1: Joaquin and Cerro Puntudo project location

The information in this Announcement that relates to foreign estimates of mineralisation has been extracted from information contained in the Company’s ASX announcement of 20 August 2024. USL confirms that it is not in possession of any new information or data relating to the foreign estimates of mineralisation that materially impacts on the reliability of those foreign estimates or USL’s ability to verify the foreign estimates a mineral resources or ore reserves in accordance with Appendix 5A (JORC Code). USL confirms that the supporting information provided in the initial market announcement of 20 August 2024 continues to apply and has not materially changed.

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