Sierra Madre Reports Solid Q2 2026 Financial Results, Advances Growth Plans

Sierra Madre Gold and Silver Ltd. is pleased to provide financial results for the quarter ended June 30, 2026. Unless otherwise noted, all amounts are expressed in U.S. dollars. Alex Langer, Chief Executive Officer, commented, "Q2 was a very productive quarter for Sierra Madre with $8.23 million in net revenues and $1.58 million in gross profit from La Guitarra, as we made significant progress on the expansion, continued the ramp up of the Coloso and Nazareno mines and added equipment and staff to support increased production.

During the search for the required mill for Phase I, the Company located and purchased a larger-than-planned mill, with the expectation that it would meet the milling requirements for both phases of the expansion. While the additional foundation and electrical work for the larger mill, along with certain shipping delays for other components of the Phase I expansion extended the completion of Phase I by several weeks, we continue to expect Phase II commissioning prior to the end of Q3 2027. Throughput levels have reached up to 672 tonnes per day so far in August. In June, we also closed the acquisition of a second substantially production-ready asset, the Del Toro silver mine in Zacatecas State, building on our Mexico production-focused platform. We closed out the quarter with US$25 million in working capital and near-term catalysts, including completion of the Phase I expansion and the commencement of East District drilling at La Guitarra."

Q2 2026 Highlights Revenues: Silver revenues for the quarter totalled $5.0 million ($75.65 per ounce) and gold revenues totalled $4.3 million ($4,529 per ounce). Silver revenues for the quarter ended June 30, 2025, totalled $2.2 million ($33.36 per ounce) and gold revenues totalled $3.6 million ($3,272 per ounce). Adjusted EBITDA of $3.5 million for the six months ended June 30, 2026 compares to $2.6 million for the six months ended June 30, 2025. Gross Profit was $1.58 million for Q2 2026, as compared to $1.69 million for Q2 2025.

Cash from Operations: the Company generated $1.89 million of cash from operating activities in H1 2026 as compared to $1.37 million in H1 2025. Cash and Cash Equivalents at June 30, 2026 totalled $22.2 million, with $25.0 million in working capital, compared to $13.2 million and $14.4 million at March 31, 2026, respectively.

Daily Production is now reaching up to 672 tonnes per day, a 34% increase over the previous level of 500 tpd. Del Toro Acquisition: Following shareholder approval and Mexican Antitrust approval, the Company closed the acquisition of a 100% interest in the Del Toro silver mine, as announced on June 22, 2026. With this acquisition, Sierra Madre completed a concurrent financing for gross proceeds of CAD$57.5 million. Geologic mapping and sampling have started at Del Toro with a re-evaluation of surveys underway and drilling expected to start in mid-2027. East District Exploration: Following quarter-end, as released on July 14, 2026, Sierra Madre received approval to start drilling in the East District of the Guitarra complex. Target definition work is underway with drilling bids in hand for a long-hole sub-horizontal drill program planned from the Tlacotal property (a permitted area designated for mining). Drilling is expected to start in H2 2026. First Majestic Loan Repayment: As announced on July 8, 2026, the Company has fully repaid the US$5 million non-revolving, secured term loan with First Majestic Silver.