Peruvian Metals Corporation announced the purchase of Rio Silver's 50% interest in the Palta Dorada Gold-Silver-Copper property ("Palta Dorada" or the "Property") located in Northern Peru, resulting in 100% ownership. The Company previously earned 50% ownership in the Property in 2020 by investing USD 250,000 and continued to fund project costs into 2021 and after. The acquisition of the remaining interest in Palta Dorada provides the Company with a strategic advantage due to the unique high-grade gold-silver mineralization that occurs in both oxides and sulphides.

Peruvian Metals' 80% owned Aquila Norte flotation plant is located 120 km northwest of the Property and can process the sulphides creating a highly marketable Cu-Au-Ag concentrate. The oxide material will be treated differently, and the Company will seek to build a Carbon-in-Pulp ("CIP") gold ore processing circuit either at Aquila Norte or near the project site at Palta Dorada. Further updates regarding the proposed gold process circuit, size and location will be issued as they become available.

Palta Dorada Work History and Geology: The Palta Dorada Au-Ag-Cu property is in the Ancash mining department in northern Peru and covers an area of approximately 2,250 hectares. The Property is accessible from the Aguila Norte plant by approximately 120 km of mainly paved roadway. The development of the Property has been delayed since April 2023 due to extensive damage to the access road from El Niño flooding.

The construction of a new access road will be a priority moving forward. The development work by Peruvian Metals at Palta Dorada concentrated on the main San Juan vein which surface exposure shows at least an 840-metre strike length. Work to date includes a 160-meter access drift on the lower 895-metre level.

The Company has also opened and widened a 53-metre shaft where artisanal miners had extracted hundreds of tonnes of highly mineralized ore that was sold to local toll mills. Seven chip samples were taken at various depths in the shaft from a quartz vein containing sulphides. Previously reported assay results from these samples range from 3.06 g/t Au to 24.1 g/t Au, 36 g/t Ag to 865 g/t Ag and 0.31 % Cu to 4.94 % Cu over an average width of 0.60 metres.

The weighted average of the assay results is 10.51 g/t Au, 329 g/t Ag and 1.74 % Cu. The shaft clearly shows the transition from the oxide zone to the sulphide zone. Assay results from the oxide zone within the shaft range from 0.87 to 55.3 g/t Au.

In 2022, 31 tonnes of oxide gold mineral were extracted in the shaft area, shipped, and sold to a local mill in Southern Peru. The mineral averaged 8.83 g/t Au with a 90% recovery. A second well-mineralized structure north of the main structure has had twelve samples taken from oxide material over a strike length of approximately 480 meters.

All samples were strongly oxidized, and assay results ranged from 1.40 g/t Au to 17.3 g/t Au, 10.8 g/t Ag to 456 g/t Ag over widths of 0.20 to 0.80 meters. The weighted average of the results is 7.92 g/t Au and 102 g/t Ag. A mini-bulk sample was taken for metallurgical work from sacks containing oxide gold material.

A bottle-roll metallurgical test was performed with a head grade of 13.0 g/t Au and 102 g/t Ag returned 92.15% gold and 65 % silver recoveries over 36 hours. Terms of the Acquisition: To acquire the remaining 50% interest in Palta Dorada, Peruvian Metals will pay Rio Silver $250,000 over five months. An initial payment of $25,000 has been made with Rio Silver retaining a 3% NSR which is capped at $2 million.

Peruvian Metals must also ensure that the royalty will pay a minimum of $50,000 per year for a period of five years.