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SIERRA MADRE Gold & Silver 123,483 Silver Equivalent Ounces Sold in Q2 2026 ; Quarterly Net Revenues of US $ 8.23 Million and Gross Profit of US $ 1.58 Million ; Phase I of La Guitarra Expansion Expected On - Line Before the End of Q3 2026 Vancouver , British Columbia -- ( Newsfile Corp. - August 27 , 2026 ) - Sierra Madre Gold and Silver Ltd. ( TSXV : SM ) ( OTCQX : SMDRF ) ( " Sierra Madre " or the " Company " ) is pleased to provide financial results for the quarter ended June 30 , 2026 ( " Q2 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 ( " Q2 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 ( " H1 2026 " ) compares to $ 2.6 million for the six months ended June 30 , 2025 ( " H1 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 ( " tpd " ) , a 34 % increase over the previous level of 500 tpd . Del Toro Acquisition : Following shareholder approval ( April 28 , 2026 news release ) and Mexican Antitrust approval ( announced May 22 , 2026 ) , 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 .