Page 1

Santacruz Silver Reports Second Quarter 2026 Financial Results Vancouver , British Columbia -- ( Newsfile Corp. - August 17 , 2026 ) - Santacruz Silver Mining Ltd. ( NASDAQ : SCZM ) ( TSXV : SCZ ) ( " Santacruz " or the " Company " ) reports its financial and operating results for the quarter ended June 30 , 2026 ( " Q2 2026 " ) . The full version of the unaudited Q2 2026 financial statements ( the " Financial Statements " ) and accompanying Management's Discussion and Analysis ( the " MD & A " ) can be viewed on the Company's website at www.santacruzsilver.com or on SEDAR + at www.sedarplus.ca . All amounts are expressed in U.S. dollars , unless otherwise stated . Q2 2026 Highlights • Revenues of $ 113.5 million , a 55 % increase year - over - year . • Gross profit of $ 51.1 million , a 102 % increase year - over - year . • Adjusted EBITDA ( 1 ) of $ 46.7 million , a 74 % increase year - over - year . • Cash and highly - liquid marketable securities ( 2 ) of $ 72.8 million , an 82 % increase year - over- year . • Working capital of $ 86.1 million , a 43 % increase year - over - year . • Net income of $ 2.0 million , a 90 % decrease year - over - year , reflecting the impact of the non- recurring tax event and non - cash CVR revaluation discussed below . • Average realized price per silver ounce sold ( 1 ) of $ 72.17 , a 118 % increase year - over - year . • AISC per silver ounce sold ( 1 ) of $ 21.87 , a 25 % increase year - over - year . • Realized mining margin per silver ounce sold ( 1 ) of $ 50.30 , a 222 % increase year - over - year . • Average realized price per zinc tonne sold ( 1 ) of $ 3,302 , a 12 % increase year - over year . • AISC per zinc tonne sold ( 1 ) of $ 2,219 , a 46 % increase year - over - year . • Realized mining margin per zinc tonne sold ( 1 ) of $ 1,083 , a 24 % decrease year - over - year . 1. The Company reports non - GAAP measures , which includes : adjusted EBITDA , average realized price per silver ounce and zinc tonne sold , all - in sustaining cost per ounce of silver and zinc tonne sold ( AISC ) and realized mining margin per silver ounce and zinc tonne sold . These measures are widely used in the mining industry as a benchmark for performance , but do not have a standardized meaning and may differ from methods used by other companies even though the metrics have the same or similar names . Refer to the section titled " Non - GAAP Measures " in the MD & A for more information . 2. Cash includes $ 50.4 million and highly - liquid marketable securities includes $ 22.4 million , consisting of US treasury notes and bills , of which $ 15.8 million serves as collateral for short - term borrowings . Arturo Préstamo , Executive Chairman and Chief Executive Officer of Santacruz , commented : " Santacruz delivered strong operating and financial performance in Q2 2026 , with revenue up 55 % year- over - year to $ 113.5 million , Adjusted EBITDA up 74 % to $ 46.7 million , and realized mining margin per silver ounce sold rising to $ 50.30 from $ 15.63 . The Company ended the quarter with $ 72.8 million in cash and highly liquid marketable securities . Our cash position was affected by the $ 7.7 million repayment of San Lucas promissory notes in June , which have been reissued in Q3 2026. In addition , we further expect to grow our cash reserves from the reduction of our unusually high trade receivables balance at the current quarter end . " Andrés Bedregal , CFO of Santacruz , stated : " It's important to note that our net income for the quarter was significantly impacted by two non - recurring tax events associated with changes in Bolivia's exchange rate and inflation assumptions , as well as a non - cash fair value adjustment related to the Glencore contingent value rights ( CVRs ) . These items obscure the underlying strength of our operating performance this quarter . " Mr. Bedregal added : " The largest impact on net income was an unusually high $ 36.1 million income tax expense caused by two non - recurring events . One event was the result of the revaluation of the Boliviano following the change in the official exchange rate from 6.96 to 9.77 Bolivianos per U.S. dollar , a 40 %