ABRA Abra Silver Resource Corp

AbraSilver Resource Corp. (TSXV: ABRA) (“AbraSilver” or the “Company”) is pleased to announce that it has entered into an agreement with National Bank Financial Inc. and Beacon Securities Limited, acting as co-bookrunners, and on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis, 8,550,000 common shares of the Company (the “Common Shares”) at a price of $2.55 per Common Share (the “Issue Price”), for aggregate gross proceeds of $21,802,500 (the “Offering”). The Underwriters will have an option to purchase up to an additional 15% of the Common Shares issued under the Offering at the Issue Price to cover over allotments, exercisable in whole or in part, at any time until 30 days after the closing of the Offering.

In addition to and concurrent with the Offering, the Company intends to complete a private placement offering (the “Concurrent Private Placement”) of up to 10,434,062 Common Shares of the Company at the Issue Price for gross proceeds of up to $26,606,858.10 in connection with the exercise of a participation right held by an affiliate of Central Puerto SA (“Central Puerto”) and Kinross Gold Corporation (“Kinross”). In connection with the Concurrent Private Placement, the Company has entered into a binding subscription agreement with Central Puerto, pursuant to which Central Puerto has agreed to purchase 9,701,157 Common Shares, which is expected to increase Central Puerto’s ownership interest to approximately 9.9% of the issued and outstanding Common Shares, on a non-diluted basis. Kinross also holds a participation right and is expected to elect to participate in the Concurrent Private Placement to maintain its current ownership position. Should the Over-Allotment Option be exercised, Kinross and Central Puerto will have the option to purchase additional Common Shares under the Concurrent Private Placement in accordance with the terms of their participation right. The Common Shares sold pursuant to the Concurrent Private Placement will be subject to a hold period of four months plus one day from the closing date of the Concurrent Private Placement. The closing of the Concurrent Private Placement is expected to occur concurrently with or shortly following the closing of the Offering and is subject to the Company receiving all necessary approvals, including the conditional approval from the TSX Venture Exchange.

John Miniotis, President and CEO, commented, “We are truly delighted to announce this $48.4 million financing, providing us with immense financial flexibility to accelerate the development of our Diablillos project and continue unlocking its full potential. The strong support from both institutional investors and strategic partners reinforces confidence in our vision and the long-term value of our assets. With this financing, we are extremely well-positioned to achieve all key development milestones and create significant value for all our shareholders.”

The net proceeds of the Offering will be used to fund the continued advancement of the 100%-owned Diablillos silver-gold project in the Salta province of Argentina and for general corporate purposes.

The closing date of the Offering is expected to occur on or about February 7, 2025, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the conditional approval from the TSX Venture Exchange.

The Common Shares will be offered publicly in all provinces and territories of Canada, except Quebec and Nunavut, by way of a prospectus supplement (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated April 14, 2023 (the “Base Shelf Prospectus”) and may be offered on a private placement basis to “qualified institutional buyers” in the U.S. using Rule 144A or such other exemption as not to require registration; and, in accordance with applicable securities laws, any other jurisdictions that would not require the filing of a prospectus, registration statement, offering memorandum or similar document and would not result in the Company having any reporting or other obligation in such jurisdiction.

Access to the Prospectus Supplement, the Base Shelf Prospectus and any amendment to such documents is provided in accordance with securities legislation relating to the procedures for providing access to a shelf prospectus supplement, a base shelf prospectus and any amendment. The Base Shelf Prospectus is, and the Prospectus Supplement will be (within two business days from the date hereof), accessible on SEDAR+ at www.sedarplus.com. An electronic or paper copy of the Prospectus Supplement, Base Shelf Prospectus, and any amendment to such documents may be obtained, without charge, from National Bank Financial Inc., by phone at (416) 869-8414 or by e-mail at NBFSyndication@bnc.ca by providing the contact with an email address or address, as applicable.

About AbraSilver

AbraSilver is an advanced-stage exploration company focused on rapidly advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta and Catamarca provinces of Argentina. The current Proven and Probable Mineral Reserve estimate for Diablillos, consists of 42.3 Mt grading 91 g/t Ag and 0.81 g/t Au, containing approximately 124 Moz silver and 1.1 Moz gold, with significant further exploration upside potential. In addition, the Company has entered into an earn-in option and joint venture agreement with Teck on the La Coipita project, located in the San Juan province of Argentina. AbraSilver is listed on the TSX-V under the symbol “ABRA” and in the U.S. on the OTCQX under the symbol “ABBRF.”

For further information please visit the AbraSilver Resource website at www.abrasilver.com, our LinkedIn page at AbraSilver Resource Corp., and follow us on Twitter at www.twitter.com/abrasilver

Alternatively please contact:

John Miniotis, President and CEOinfo@abrasilver.comTel: +1 416-306-8334

Cautionary Note Regarding Forward-Looking Information

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation, including in respect of the Offering, the Concurrent Private Placement, the expected closing date, the use of net proceeds thereof and the expected graduation to the TSX. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in the Company’s disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR+ at www.sedarplus.ca. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.