Underground Development

Defining a large underground resource

Development Strategy and Growth Potential 

The Camino Rojo deposit comprises three continuous zones with distinct characteristics: 

1. The company has a phased de-risking strategy extending through 2026,including optimization studies, exploration decline development, and staged underground drilling, with a pre-feasibility study planned for 2027. 
2. Over 110,000 metres of drilling since 2020 support the project, with more than 4 million ounces of gold equivalent in measured and indicated mineral resources. 
3. Mineralization remains open at depth in Zone 22, providing considerable exploration upside.

PEA Highlights

Economic Performance and Production Metrics

Mine Life	17 Yrs
Production (Yrs 1-10 Avg)	228,000 oz/yr AuEq
Total Recovered AuEq*	2,965 Koz
Initial Capital	$608 M
After-tax NPV(5%) – @$3100 Au	1.3B
IRR – @$3100 Au	30%
AISC (AuEq)1	$1,339/oz Au
Mineral Resources2
Measured & Indicated Au	4,267 Koz
Inferred	376 Koz

The PEA demonstrates robust economics with an after-tax NPV of $1.3 billion and 30% IRR at $3,100/oz gold, scaling up to $3.3 billion NPV and 61% IRR at $5,000/oz gold. Production projections indicate an average of 215,000 ounces of gold annually over the first 10 years, with all-in sustaining costs averaging $1,304 per payable ounce, providing strong operational margins across various gold price scenarios.

*Note: Gold equivalent (AuEq) reflects total metal presented on an equivalent basis. The Company uses conversion ratios for calculating gold equivalent for its silver and zinc production, which are calculated by multiplying the volumes of silver and zinc by the respective assumed metal prices, recoveries (varies), and dividing the resulting figure by assumed gold price. The following metal prices and recoveries (averaged) were used:

• Gold: $3,100/oz and 87% recovery
• Silver: $37.50/oz and 75% recovery
• Zinc: $1.20/lb and 40% recovery

1. AISC is a non-GAAP measure. The Project does not currently have operations and therefore does not have historical equivalent measures to compare to and cannot perform a reconciliation of this non-GAAP financial performance measure. See “Non-GAAP Measures” in the Legal Notice
2. See Feb. 19, 2026 press release

Underground Extension

Zone 22 Discovery

Zone 22 is the vertical and down-plunge extension of the Camino Rojo Sulphides, is hosted by limestone-rich formations and extends from 700 to 1,300 metres in vertical depth below surface. Following its discovery in 2024, a 20,000-meter drill program was completed in 2025, which focused on infill and extension. Mineralization remains open at depth and down-plunge. 

Highlights from the 2025 Zone 22 Campaign (reported as true widths): 

• 142.0 g/t AuEq over 1.4 m (Hole CRSX24-36D) 
  • 9.8 g/t AuEq over 9.4 m (Hole CRSX25-47B) 
  • 9.0 g/t AuEq over 7.9 m (Hole CRSX25-48A) 

Highlights from the 2024 Zone 22 Campaign:

• CRSX24-36C: 31.5 g/t AuEq over 2.7m, incl. 143.4 g/t AuEq over 0.6m
• CRSX24-40A: 11.2 g/t AuEq over 4.5m, incl. 22.4 g/t AuEq over 1.3m
• CRSX24-40A:11.1 g/t AuEq over 2.8m, incl. 16.9 g/t AuEq over 1.5m 
• CRSX24-31: 5.68 g/t AuEq over 4.9m, incl. 27.8 g/t AuEq over 0.5m 

Full drill results tables

Underground Mineral Resource Estimate

Zone 22 is the vertical and down-plunge extension of the Camino Rojo Sulphides, is hosted by limestone-rich formations and extends from 700 to 1,300 metres in vertical depth below surface. Following its discovery in 2024, a 20,000-meter drill program was completed in 2025, which focused on infill and extension. Mineralization remains open at depth and down-plunge. 

Resource Type	Category	Kt	Average Grade				Contained Metal				NSR Cut-Off Grade ($/t)
			Gold (g/t)	Silver (g/t)	Zn (ppm)*	AuEq (g/t)	000 oz Au	000 oz Ag	million lb Zn	000 oz AuEq
Heap Leach	Measured	0	–	–	–	–	–	–	–	–	57 to 66
	Indicated	3,298	2.54	12.23	–	2.66	269	1,297	–	282
	M&I	3,298	2.54	12.23	–	2.66	269	1,297	–	282
	Inferred	198	2.39	14.62	–	2.53	15	93	–	16
Mill	Measured	0	–	–	–	–	–	–	–	–	63 to 72
	Indicated	45,965	2.53	11.28	3,783	2.7	3,745	16,674	383	3,985
	M&I	45,965	2.53	11.28	3,783	2.7	3,745	16,674	383	3,985
	Inferred	3,974	2.51	10.95	6,613	2.82	321	1,398	58	360
Total	Measured	0	–	–	–	–	–	–	–	–	57 to 72
	Indicated	49,263	2.53	11.35	3,530	2.69	4,014	17,971	383	4,267
	M&I	49,263	2.53	11.35	3,530	2.69	4,014	17,971	383	4,267
	Inferred	4,172	2.50	11.12	6,299	2.80	336	1,491	58	376

1. Definitions from the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards on Mineral Resources & Mineral Reserves adopted by the CIM Council on May 10, 2014 (the “CIM Definition Standards”) were followed for estimating Mineral Resources.
2. Mineral Resources are estimated in the optimized pit shell at a net smelter return (“NSR”) cut-off value of $8.44/t for leach material and $14.06/t for Mill material, while the underground reporting shapes are using a NSR cut-off value for long-hole stoping of $57/t for heap leach material and $63/t for mill material were applied. For cut-and-fill mining, NSR cut-off values of $66/t for heap leach material and $72/t for mill material were used. 
3. Mineral Resources are estimated using a long-term price of $2,800 per ounce for gold, $33 per ounce for silver, and $1.25 per pound for zinc, with an US$:C$ exchange rate of 1:1.34.
4. Stockpiles are using a cut-off grade of 0.21 g/t Au based on a long-term price of $2,300 per ounce gold, with an US$:C$ exchange rate of 1:1.34.
5. Bulk density varies from 2.40 t/m³ to 2.67 t/m³ for the mineralization and estimation domains and 2.0 t/m³ for the overburden.
6. Metallurgical recoveries vary according to geometallurgical domains and process type (Leach or Mill) and are either a constant or formula based. Heap leach recoveries range from 40% to 70% for gold and 11% to 34% for silver. For mill flotation concentrate, recoveries range from 80% to 89% for gold, 52% to 86% for silver, and 87% to 90% for zinc; zinc recovery is assumed to be 0% for the Transition and S1a_CAR geometallurgical domains.
7. The NSR is calculated by material type with the following formulas:
   • Heap Leach Material NSR ($/t) = (Au grade (g/t) x (((2,800-1.69) x Au recovery Heap Leach x 0.999 x (1-0.03)) / 31.103477)) + (Ag grade (g/t) x (((33-1.69) x Ag recovery Heap Leach x 0.98 x (1-0.03)) / 31.103477))
   • Mill Material NSR ($/t) = (Au NSP ($/g Au) x Au grade (g/t)) + (Ag NSP ($/g Ag) x Ag grade (g/t)) + (Zn NSP ($/g Zn) x Zn grade (ppm))
8. The gold equivalent (AuEq) by material types are calculated with the following formulas, including the recoveries in Item 5:
   • Heap Leach Material AuEq = Au grade (g/t) + (Ag NSP ($/g) / Au NSP ($/g) x Ag grade (g/t)).
   • Mill Material AuEq = Au grade (g/t) + (Ag NSP ($/g) / Au NSP ($/g) x Ag grade (g/t)) + ((Zn NSP ($/lb) x 2,204.62 / 100 / Au NSP ($/g)) x Zn grade (ppm) / 10,000)). 
9. Mineral Resources are constrained by an optimized resource pit shell and underground resource panels with a minimum mining width of 2 m for long-hole stoping and 5 m for cut-and-fill.
10. Mineral Resources are inclusive of Mineral Reserves.
11. Numbers may not add due to rounding.
12. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves.

* Zinc is only considered in the Mill scenario, and its grade is averaged over the final total numbers.

** AuEq depends on net smelter price (“NSP”) parameters that vary by geometallurigcal domain, which cannot be defined for stockpiled material. Instead of a calculated AuEq value, the stockpiles use the Au value for the AuEq, which does not include the contribution from Ag.

Underground Gallery