AbraSilver Resource Corp. reported positive results from metallurgical optimization testing on the Oculto deposit at its wholly-owned Diablillos property in Salta Province, Argentina ("Diablillos" or the "Project"). The program was completed by independent metallurgical consultants, SGS Canada Inc.,
at its testing facilities in Lakefield, Ontario. Key takeaways from the PFS-level metallurgical test work include: Recovery rates at the Oculto deposit are expected to range between 82% - 86% for silver and 84% - 89% for gold. These results represent a significant increase over the average recovery
rates of 73.5% for silver and 86% for gold used in the 2022 Preliminary Economic Assessment ("PEA"). A substantial percentage of the silver and gold at Oculto can be recovered by gravity separation which results in higher recovery rates and lower processing costs. Importantly, fine grinding is not necessary with the most efficient recoveries achieved at a grind size of 150 microns for both gravity and cyanidation and an optimal retention time of 36 hours. The latest program involved metallurgical testing of four composites from the Oculto deposit, including gravity separation testing and cyanidation of the gravity tailings for the recovery of gold and silver. The composite samples were selected from prior samples used for metallurgical testing, which are representative of four distinct mineralogical regimes at the Oculto deposit. The campaign was designed to supplement and optimize the results from prior metallurgical test work programs, conducted between 1996 and 2021, which formed the basis of the 2022 PEA for the Diablillos project. The latest test work demonstrated that gravity separation can be used before cyanide leaching to recover substantial amounts of silver and gold at Oculto. The overall gold and silver recoveries achieved by gravity separation followed by cyanidation of the gravity tailings are summarized in the table below, and will be incorporated in the upcoming Mineral Resource estimate ("MRE") update and PFS for the Diablillos project. The process design for the PFS will consist of a conventional silver/gold processing plant flowsheet incorporating crushing, grinding, gravity concentration and intense cyanidation circuit, cyanide leaching with oxygen addition, counter current decantation ("CCD") washing thickeners and Merrill-Crowe precious
metal recovery from solution followed by on-site smelting to doré bars. Upcoming Milestones and Catalysts: Bottle roll and column testing is currently being conducted to evaluate the viability of heap leaching lower- grade mineralized material from the Oculto deposit, with results expected by the end of the year. It is anticipated that heap leaching some lower-grade material that is not otherwise expected to be incorporated in the mine plan, could result in increased mineral resources and a further reduction in the overall strip ratio at Diablillos. The Company anticipates announcing several significant milestones over the next few months, including: Announcing assay and geophysical survey results from regional exploration targets at JAC North, Alpaca and Fantasma (October 2023); Updated Mineral Resource estimate for the Diablillos project (late October /early November 2023); Bottle roll and column testing results for heap leach processing (fourth quarter of 2023); Pre-Feasibility Study results for the Diablillos project (January 2024).