Vancouver, British Columbia--(Newsfile Corp. - June 9, 2025) - Capitan Silver Corp. (TSXV: CAPT) ("Capitan" or "the Company") is pleased to announce that it has entered into a Letter of Intent ("LOI") to acquire a strategic property package which consists of seven (7) mineral concessions which are located immediately adjacent to and surrounding its Cruz de Plata silver-gold project in Durango, Mexico.

Key Highlights:

• Acquisition of a 100% interest in 7 mineral concessions totaling 2,171.4 hectares, directly adjacent to and surrounding the Cruz de Plata Project

• Increases Capitan Silver's total land position in the district by approximately 85%

• Expands the surface expression of the 2.5 km silver-gold trend by to 3.7 km (additional 1.2 km to the east)

• This transaction allows for the consolidation of the land package while opening up additional ground for potential infrastructure development and optimizing the project design

Capitan is acquiring the properties from Minera Fresnillo S.A. de C.V. ("Fresnillo"). The price of the transaction is US$4.0 million, in two installments: US$2.0 million payable upon execution and ratification of the definitive agreement ("Closing") and US$2 million payable on or before the second anniversary of the Closing. There are no royalties or share payments for this transaction.

Closing is subject to Capitan's technical and legal due diligence and Fresnillo's corporate due diligence; execution of the definitive agreement is targeted within 90 days.

Alberto Orozco, President & CEO, commented:

"This is a transformative step for Capitan. By consolidating ownership of this highly prospective corridor, we not only expand our exploration footprint by 85%, but also unlock significant development potential with continuity across the district. This transaction positions the Company strongly for the next phase of growth through further exploration at Cruz de Plata. We're excited to move forward with a more unified and scalable land package."

Figure 1. Cruz de Plata property map showing the resulting consolidated property that would result upon completion of the transactions with Fresnillo. The map also shows the location of the high-grade silver trend, which would extend for an additional 1.2Km to the East into the consolidated property, and the location of the Capital hill disseminated oxide gold deposit.

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