UNICO SILVER LIMITED — Capital/Financing Update 2024

Mar 25, 2024

26 March 2024

Unico moves to 100% ownership of Conserrat

Unico Silver ( USL or the Company ) is pleased to announce that it has entered into a share purchase agreement to acquire the outstanding 20% in the Conserrat project, bringing USL's interest to 100%.

PROJECT CONSOLIDATION

HIGHLIGHTS

• USL moves to 100% ownership of the Conserrat project and silver-gold resource[1] (the Conserrat project ) and surrounding titles held by Argentine subsidiary Minera Los Domos SA ( MLD ).

• The transaction increases mineral resources attributable to USL by 2.29 million silver equivalent ounces (AgEq)[2] at a cost of A$0.17c per ounce[3] .

• Simplified 100% ownership across USL's entire Santa Cruz portfolio.

• Removal of the 20% free-carried interest on all mineral titles held by MLD, which includes three priority pipeline projects:

• Corona project south of Newmont's Cerro Negro mine,

• Angostura project west of Pingüino, both prospective for extensions of known epithermal gold-silver veins, and

• Paredes project located in the Rio Negro province, prospective for porphyry copper-gold mineralisation.

• Total consideration is 3m ordinary USL shares issued under existing placement capacity LR 7.1

Managing Director, Todd Williams states: "We are pleased to move to 100% ownership of Conserrat. This is an accretive transaction that increases total attributable silver-gold resources and streamlines the portfolio, providing Unico Silver with greater optionality and flexibility to unlock value from future exploration at Conserrat as well as high-priority regional tenements".

1ASX Announcement, Unico Silver, 18 May 2023, Cerro Leon silver resource grows 84% to 92 million silver equivalent ounces.

2AgEq = Ag (g/t) + 79.18 x Au (g/t) + 25.56 x Pb (%) + 39.41 x Zn (%), where: silver price is $23.5/oz and recovery is 95%, gold price is $1964/oz and recovery is 90%, lead price is $0.95/lb and recovery is 87.6% and zinc price is $1.39/lb and recovery is 92.3%

3 USL share price of 13 cents at 25/03/2024.

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TRANSACTION OVERVIEW

USL is pleased to announce that it has signed a binding share purchase agreement ( the Agreement ) to acquire the outstanding 20% shares in Minera Los Domos S.A. ( MLD ), a private Argentinian company that owns the Conserrat project and regional tenements shown in Figure 1.

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Figure 1. Santa Cruz portfolio

Conserrat is host to indicated and inferred resources of 11.4 million ounces AgEq at 149gpt AgEq (see Table 1). The transaction is accretive and increases mineral resources attributable to USL by 2.29-million-ounce AgEq at a cost of A$0.17c per ounce[3] .

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Table 1: Cerro Leon summary of mineral resources reported at variable cut offs

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The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. Due to rounding to appropriate significant figures minor discrepancies may occur. All tonnages reported are dry metric.

Minera Los Domos also holds early-stage exploration projects in the Santa Cruz and Rio Negro provinces, including the Corona , Angostura and Paredes projects:

Corona properties (Santa Cruz)

• 14,790Ha contiguous landholding south of Newmont's Cerro Negro mine.

• Centred on the Rio Pinturas fault zone - host to all known epithermal gold-silver veins.

• 11 prospects untested by drilling.

• Rock chip values up to 6.5gpt Au.

Angostura property (Santa Cruz)

• 6554Ha title west and immediately adjacent to the Sierra Blanca (Capella Minerals / Austral Gold) and Pinguino vein districts.

• Continuation of major west-northwest structures.

Paredes properties (Rio Negro)

• 9,970Ha landholding centred on unexplored porphyry copper-gold prospect.

• 900m by 700m gold-in-soil anomaly coincident to argillic alteration and local porphyry veins.

• Up to 16.7gpt Au, 148gpt Ag, 25% Cu in rock chip samples.

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Currently USL has an 80% shareholding in MLD, an incorporated joint venture with private Australian company RN Gold Pty Ltd (RN Gold), pursuant to which RN Gold is free carried to completion of a PreFeasibility Study on each project and has a right to convert to a 1.5% net-smelter return royalty if its interest dilutes below 5% in respect all existing permits held by MLD.

USL, via its wholly owned subsidiary, has executed an Agreement with RN Gold, to acquire the residual 20% of the shares on issue in MLD., which it does not already own, bringing USL’s total interest in MLD. to 100%.

On Completion of the Agreement, USL and RN Gold will terminate the incorporated Joint Venture Agreement entered 20 December 2018, which include restrictions on USL and MLD independently pursuing opportunities within an agreed area of interest.

TOTAL CONSIDERATION

The total consideration payable by USL for the acquisition is 3 million fully paid USL shares ( Consideration Shares ), to be issued and allotted on the completion date of the Agreement. RN Gold will also retain a 1.5% net-smelter return royalty in respect all existing permits of MLD (see Figure 1).

It is expected that Completion of the proposed acquisition will occur in the coming weeks.

COMPETENT PERSON’S STATEMENT

Information in this report that relates to Exploration results and targets is based on, and fairly reflects, information compiled by Unico Silver Limited and Todd Williams, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr. Williams is the Managing Director to Unico Silver Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Williams consents to the inclusion of the data in the form and context in which it appears.

FORWARD LOOKING STATEMENT

Certain statements in this announcement constitute “forward-looking statements” or “forward looking information” within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the Company’s current expectations regarding future events, performance and results, and speak only as of the date of this announcement.

All such forward-looking information and statements are based on certain assumptions and analyses made by

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USLM’s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believe are appropriate in the circumstances.

SCHEDULE OF TENEMENTS

Description	Tenement number	Holder
Evelina,Argentina	423.826/MS/09	Minera
Lago Hermoso,Argentina	423.827/MS/09	Minera
El Salado Este,Argentina	423.828/MS/09	Minera
El Salado Central I,Argentina	424.985/MS/10	Minera
El Porvenir Norte,Argentina	421.672/MS/12	Minera
Tres Cerros Oeste,Argentina	422.990/MS/12	Minera
Sierra Morena I,Argentina	430.269/MS/14	Minera
Sierra Morena II,Argentina	430.270/MS/14	Minera
Cañadón La Angostura,Argentina	437.502/BVG/17	Minera
Van Norte,Argentina	437.503/BVG/17	Minera
Corona Norte,Argentina	437.470/BVG/17	Minera
Corona Sur,Argentina	437.472/BVG/17	Minera
Corona Este,Argentina	423.084/MLD/23	Minera
Corona Oeste,Argentina	423.085/MLD/23	Minera
Conserrat,Argentina	437.471/BVG/17	Minera
Felipe,Argentina	440.732/LD/19	Minera
Corona Este(Cateo),Argentina	422.315/MLD/23	Minera
Cerros Blancos,Argentina	32.053/M/2007	Minera
Arroyo de la Ventana,Argentina	32.056/M/2007	Minera
Paredes Este,Argentina	45.248/M/2020	Minera
Paredes Norte,Argentina	46.387-M-2021	Minera
Paredes Sur,Argentina	47.465-M-2022	Minera

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