In the news release, Kootenay Silver Announces Positive PEA with a US$763 Million After-Tax NPV & 41% IRR for La Cigarra Silver Project, issued 15-Jun-2026 by Kootenay Silver Inc. over CNW, we are advised by the company that changes have been made. The complete, corrected release follows, with additional details at the end:

Kootenay Silver Announces Positive PEA with a US$763 Million After-Tax NPV & 41% IRR for La Cigarra Silver Project

The Project includes a 14-year open-pit silver project delivering strong economics, a rapid 1.9(EQNX::nobreakspace)year payback, and a 63.7-million-ounce payable silver production profile with significant exploration upside remaining along a 9-kilometre mineralized trend.

VANCOUVER, BC, June 15, 2026 /CNW/ - Kootenay Silver Inc. (the "Company" or "Kootenay") (TSXV: KTN) (OTCQX: KOOYF) is pleased to announce the results of a positive Preliminary Economic Assessment ("PEA")ⁱ prepared by the engineering firms Sacr(EQNX::eacute)-Davey Engineering Inc. and Canenco Consulting Corp. for its 100%-owned La Cigarra Silver Project ("La Cigarra" or the "Project") in Chihuahua, Mexico.

The La Cigarra Project is situated within the well-established Parral Mining District of Chihuahua State, Mexico), which hosts two nearby mining operations, the Santa Barbara Mine and the San Francisco Del Oro Mine. Both mines are active silver producers located approximately 20(EQNX::endash)30 kilometres to the south of La Cigarra along the same mineralized trend and are actively mining to depths of up to 2,000 kilometres deep. Together, these two operations produced 440 million ounces of silver from 1650 to 1988 (Grant and Ruiz, 1988) with both operations still in production today. Readers are cautioned that the information disclosed from adjacent properties is not necessarily indicative to the mineralization on the Project that is the subject of this disclosure.(EQNX::nobreakspace)

Key Highlights of the PEA

All monetary values are in U.S. dollars unless otherwise noted.

Project Economics

• After-tax net present value at consensus metal pricesⁱⁱ(EQNX::nobreakspace)(5% discount rate): $763 million
• After-tax internal rate of return (IRR): 41%
• After-tax net present value at spot metal pricesⁱⁱⁱ(EQNX::nobreakspace)(5% discount rate): $1,295 million and IRR of 64%

Capital and Cost Structure

• Initial capital cost: $332 million
• Sustaining capital cost: $80 million
• Payback period: 1.9 years (after tax)
• Study life-of-mine (LOM): 14 years

Production Profile

• Average annual silver production over Years 1(EQNX::endash)5: 6.22 million ounces.
• Average LOM annual payable silver production: 4.55 million ounces
• LOM payable-silver production: 63.6 million ounces
• Average annual after-tax revenue: $107 million per year.
• Average all-in sustaining cost: $18.73/oz Ag
• Processing rate: 6,000 tonnes per day
• Average silver recovery: 89.3%

Management Commentary

James McDonald, President and CEO of Kootenay Silver, said:

"The Preliminary Economic Assessment marks a significant milestone in advancing La Cigarra toward development. The 14-year mine life, strong annual production, and IRR demonstrate the potential for a long-life silver operation in one of Mexico's premier mining districts, a district that has been producing for nearly 500 years. We believe the combination of attractive economics, substantial resource-growth potential, existing infrastructure, and strong silver market fundamentals, positions La Cigarra as a compelling development asset, significantly adding value to the stakeholders in the region."

Ken Berry, Chairman of Kootenay Silver, added:

"This study validates our strategy of advancing our portfolio of silver assets through the development pipeline. With La Cigarra now supported by a positive PEA, we are evaluating the next steps to unlock additional value through resource expansion, engineering optimization, and advancement toward permitting and feasibility engineering."

Cautionary Statement Regarding the PEA

The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Inferred Mineral Resources have a lower level of confidence than that applied to Measured and Indicated Mineral Resources and there is no certainty that Inferred Mineral Resources will be converted to Measured or Indicated Mineral Resources through further exploration. There is no certainty that the results of the PEA will be realized.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Project does not contain any Mineral Reserves and the economic analysis contained in the PEA is based on Mineral Resources, including Inferred Mineral Resources and there is no certainty that Mineral Resources will be converted into Mineral Reserves.

PEA Inputs

The following tables outline various operation and capital cost inputs, production details including ounces of silver and gold produced and pounds of lead and zinc produced, mining rate, tonnes mined, strip ratio, metal recovery factors, total cash cost for silver, all in sustaining cost for silver long term price assumptions for silver, gold, lead and zinc, tax inputs, EBITA, pre and post-tax for net present values, internal rate of return, free cash flow, and payback period.

Table of production details in the PEA

Table of capital cost inputs

Table of operating cost inputs.

Table of tax inputs

Table of revenue source by metal

Project Overview

La Cigarra is approximately 26 kilometers from the historic mining city of Parral, and benefits from strong existing infrastructure, including road access, nearby power, and a skilled local workforce.

The updated Project Mineral Resource estimate ("MRE") (Table 1) forms the basis of the PEA.

Highlights of the Project MRE are as follows:

• Measured + Indicated Mineral Resources are estimated at 23.02 Mt grading 81 g/t Ag, 0.06(EQNX::nobreakspace)g/t Au, 0.14%(EQNX::nobreakspace)Pb, and 0.19% Zn (93 g/t AgEq). The Measured + Indicated MRE includes 60.02(EQNX::nobreakspace)Moz Ag, 45.2 koz Au, 71.3 Mlb Pb, and 97.0 Mlb Zn (69.02 Moz AgEq).
• Inferred Mineral Resources are estimated at 6.78 Mt grading 79 g/t Ag, 0.05 g/t Au, 0.15%(EQNX::nobreakspace)Pb, and 0.17%(EQNX::nobreakspace)Zn (90 g/t AgEq). The Inferred MRE includes 17.25(EQNX::nobreakspace)Moz(EQNX::nobreakspace)Ag, 11.90 koz Au, 22.7 Mlb Pb, and 25.5 Mlb Zn (19.72 Moz AgEq).

Table 1:(EQNX::nobreakspace)(EQNX::nobreakspace)(EQNX::nobreakspace)(EQNX::nobreakspace)(EQNX::nobreakspace)(EQNX::nobreakspace)La Cigarra Deposit Mineral Resource Estimate, April 4, 2026

The updated Project in-pit MRE at various cut-off grades is presented in Table 2.

Table 2:(EQNX::nobreakspace)(EQNX::nobreakspace)(EQNX::nobreakspace)(EQNX::nobreakspace)(EQNX::nobreakspace)(EQNX::nobreakspace)In-Pit Mineral Resource Estimate at Various AgEq Cut-off Grades, April(EQNX::nobreakspace)4,(EQNX::nobreakspace)2026

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