Letter from our Chair

Dear Shareholders and Stakeholders,

It has been a busy and successful year thus far for AbraSilver with even more progress to come before 2026 draws to a close.  The achievements in recent months have positioned us well as we advance construction plans for Diablillos and lay the groundwork for the significant ramp up in activities that is expected to happen in a very short time.

Reflecting on year-to-date 2026

In March, the Diablillos project was approved for inclusion under Argentina’s Large Investment Incentive Regime (“RIGI”). Both Salta and Catamarca Provinces, where Diablillos is located, have opted into the regime.   The long-term fiscal stability along with competitive tax, customs, and foreign-exchange benefits add significantly to the project value and the compelling case for development.

In April, we received environmental approval from Salta province and in June the environmental approval from Catamarca province followed, making Diablillos the largest fully-permitted construction-ready silver-gold project globally.

In May, we announced the updated Mineral Resource estimate on Diablillos. The updated resource revealed Measured & Indicated resources now totaling 232 million tonnes, containing approximately 248 Moz of silver and 2.54 Moz of gold (454 Moz silver-equivalent). The contained metal in M&I increased by a substantial 25% for silver, 48% for gold and 30% for silver-equivalent since the prior mineral resource estimate from just under a year earlier in July 2025.

In June, we announced the results of the Definitive Feasibility Study that confirmed Diablillos as the premier undeveloped silver-gold project globally with $3 billion (CAD$4.2B) after-tax NPV5%, a 42% IRR and a 1.7 year payback period at base case metal prices of $50/oz Ag and $3,650/oz Au.  First production is targeted before year-end 2029.

In July, the Company completed an equity offering for proceeds of approximately C$52 ($37.7), comprised of a C$50 million public offering of common shares and a concurrent private placement to Kinross of C$2 million. This places us well to fund early works in advance of a larger project financing package.  

And in September, AbraSilver was named to the 2026 TSX30, the Toronto Stock Exchange’s annual ranking of its 30 top-performing listed companies, on the strength of 904% dividend-adjusted share price appreciation over the three-year period ended June 30, 2026. It is gratifying to see the market recognize the value the team has created over that period, and it reflects the confidence our shareholders have placed in us.

Argentina: Multi-Jurisdiction Support

We are fortunate to have the support of the government in Argentina at multiple levels and jurisdictions. During our recent visit in late August/early September, we had the opportunity to meet with federal and provincial government officials.  Listing by date of the meeting, we met with the Secretary of Mining Gustavo Carrizo of  Salta, Governor Raúl Jalil of Catamarca, Minister of Mining Teresita Regalado of Catamarca, Minister of Government, Security and Justice Alberto Natella of Catamarca and the Secretary of Mining Luis Lucero of the Government of Argentina. We appreciate the warm welcome and openness to receive us in the provinces and in the capital. We had conversations about how the development of Diablillos can benefit the local communities through direct employment, procurement and the secondary economic activity that will result from our investment.

It was also a pleasure to spend time with our teams, at site, in Salta, Catamarca and in Buenos Aires. We have a high-performing group of dedicated employees who are excited about the next phase of development for Diablillos. We have been adding talent to the teams as we ramp up activity to prepare for the final construction decision in the first half of next year. We will be continuing this effort throughout the coming months. 

Looking Ahead

The pace of activity is not slowing down for us. Over the next several months we will be completing early works and adding talent that will build and operate this future world-class silver mine. We will be assessing our financing alternatives and selecting the optimal financing package. As we carry on with the important activities towards construction we will not overlook the multiple opportunities that exist to further enhance value beyond the DFS.

Value enhancing opportunities we will focus on in coming months include:

Heap Leach Expansion: A Phase 2 heap leach expansion provides a significant improvement to the mid-term production profile by processing lower grade mineralized material to provide incremental gold and silver production. The Company is completing a Preliminary Economic Assessment and expects to release the results in the fourth quarter. 

Exploration Programs: We will continue to drill on existing concessions and also look for nearby opportunities that can provide prospectivity within our regional footprint.  We are planning a drill campaign on the newly acquired Condoryacu area where initial confirmatory drilling returned very strong results, including a broad, high-grade intercept of 72 metres grading 18.7 g/t gold, 117 g/t silver and 2.06% copper beginning at surface.  This intercept represents the strongest gold grade-thickness intersection ever reported within the broader Diablillos district. Diablillos remains open for exploration both laterally and at depth.

And while we continue to explore, we also recognize that our current stated resources are based on very conservative values. By demonstrating the heap leach viability through our PEA, we can expect improvements in R&R at consensus pricing levels to further enhance heap leach values.  

In summary, steady progress has been made thus far in 2026, creating significant value and de-risking the project considerably.  I would like to thank our executive and site teams for their continuing achievements as a result of persistent efforts and dedication.   

Thank you to our shareholders for your continued support. We have been welcoming new shareholders and staying connected with our long term holders. Whether you are new to the AbraSilver story or have been a long-time supporter, we thank you for your confidence and will strive to continue to create value for all.

Yours truly,

Marie Inkster

Executive Chair, AbraSilver Resource Corp.