Denarius Metals upsizes Trafigura prepayment facility to US$7 million for Zancudo exploration

DENARIUS METALS ANNOUNCES US$7 MILLION UPSIZING OF ITS PREPAYMENT FACILITY WITH TRAFIGURA TO FUND EXPLORATION AND THE ACCELERATION OF DEVELOPMENT ACTIVITIES AT ITS ZANCUDO PROJECT PR Newswire TORONTO , June 18, 2026 /PRNewswire/ - Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or the "Company") announced today that it has upsized its prepayment agreement dated February 7, 2025 (the "Facility") with Trafigura Pte. Ltd. ("Trafigura") from US$9,000,000 to US$16,000,000. The additional financing of up to US$7,000,000 will be used by the Company to fund the current exploration drilling campaign being carried out at the Zancudo Project and toward the development of a new portal and 600 m ramp at the Las Brisas-Manto Antiguo area to open access to new mining fronts in the Zancudo Project for exploitation by mid-2027.

The Company also announced today that it received US$3,500,000 in cash this week from Trafigura pursuant to the Third Advance available under the Facility. This brings the total financing that the Company has received to date under the Facility to US$9,000,000, including US$500,000 of interest that has been capitalized to the principal amount of the debt during the initial Grace Period ending June 30, 2026. In April 2024, the Company signed a long-term commercial agreement with Trafigura for sale at market prices of 100% of the high-grade gold-silver concentrates to be produced at Zancudo from its new 1,000 tonnes per day processing plant.

In 2025, this offtake contract was amended to include the sale of crushed ore from Zancudo to Trafigura during the early production period up to the commencement of the plant operations. In April and May 2026, mining rates have progressed, enabling the Company to ship a total of 2,162 tonnes to a local port for sale to Trafigura. With grades averaging 11.4 g/t gold and 222.3 g/t silver, these shipments contained approximately 795 ounces of gold and 15,457 ounces of silver.

Payable gold and silver for the first two months of the second quarter of 2026 amounted to 540 ounces and 5,580 ounces, respectively. In the first quarter of 2026, payable gold and silver was 593 ounces and 7,839 ounces, respectively. This brings the total for the first five months of 2026 to 1,133 payable ounces of gold and 13,419 payable ounces of silver.

In 2025, payable gold and silver amounted to 333 ounces and 5,749 ounces, respectively. The First and Second Advances under the Facility totaling US$5,000,000 will begin to be repaid, with interest, from production over a 26-month period commencing July 1, 2026. The aggregate amount of the Third Advance of US$4,000,000 will begin to be repaid, with interest, from production over a 20-month period commencing January 1, 2027.

The Fourth Advance of up to US$7,000,000 may be drawn at the Company's request in one or more tranches over the six months ending December 31, 2026 and will begin to be repaid, with interest, from production over a 20-month period commencing January 1, 2027. The amount available under the Fourth Advance is inclusive of interest capitalized on the Third and Fourth Advances during the period from July 1, 2026 to December 31, 2026. In conjunction with the execution of the upsizing of the Facility, the Company has agreed to issue a total of 3,000,000 common share purchase warrants to Trafigura with an exercise price of CA$1.00 per common share that will expire on December 8, 2028.