Highlander Silver Corp.

[ASSET SCOPE, added Task #573, 2026-08-24] Highlander Silver holds THREE assets following the 26 Feb 2026 Bear Creek Mining business combination: the producing Mercedes gold-silver mine (Sonora, Mexico -- the asset this row's stage=PRODUCTION is anchored on), the Corani silver-lead-zinc project (Puno, Peru -- the post-merger flagship: fully permitted, 2019 feasibility study filed, NO construction decision/FID), and San Luis (Ancash, Peru -- now a secondary project). The San Luis block immediately below PREDATES the combination and describes SAN LUIS ONLY. It is accurate on its own terms and is retained verbatim and unchanged, but it is not a description of the company. See the Task #537g block for the stage reasoning and the Task #573 block at the end for the Mercedes/Corani rewrite and the open ouncesFound question. San Luis Project (Ancash, Peru; bonanza-grade epithermal Au-Ag; Augusta Group/Lundin family-backed). Current NI 43-101 Indicated Mineral Resource = 356 Koz Au @ 24.4 g/t Au and 8.4 Moz Ag @ 579 g/t Ag, per 'Technical Report on the San Luis Property', effective 15 Jan 2025, independent QP Martin Mount (MSc MCSM FGS CGeol FIMMM CEng), filed on SEDAR+ and restated verbatim in Highlander's own press releases through early 2026. No Measured category exists -- Indicated is the full M+I figure. This NI 43-101-compliant estimate SUPERSEDES the older 'historical' 2010 estimate (9,003,300 oz Ag / 348,000 oz Au, from the 2010 San Luis Feasibility Study prepared for the prior owners) cited in Highlander's original Mar 2024 acquisition announcement -- that 2010 figure was explicitly flagged by the company itself as a historical estimate a qualified person had not verified and which the company was 'not treating... as a current mineral resource,' so it is deliberately not the figure written here. Company completed a business combination with Bear Creek Mining (announced/closed Feb 2026); active drilling continues at San Luis with no resource update published as of this pass (Aug 2026). [Task #537g stage correction, 2026-08-22] RESOLVED 2026-08-22 (Task #537g): raised stage RESOURCE_DEFINITION -> PRODUCTION, and set stageEnteredAt = 2026-02-26. This resolves the stage flag raised (deliberately unfixed) by scripts/backfill-milestone-task537g-batchA.ts, commit a37764f. ANCHOR IS MERCEDES, NOT CORANI. The 26 Feb 2026 Bear Creek business combination added not only the Corani silver project but the OPERATING Mercedes gold-silver mine (Sonora, Mexico). Highlander's own H1 2026 6-K/MD&A states its principal business is "the acquisition, exploration and development of mineral properties located in Peru, and the production and sale of gold and silver in Mexico, operating the Mercedes gold-silver mine," and reports revenue of US$56.227M for the six months ended 30 Jun 2026, ALL of it from Mercedes (Q1/26 sales US$18.33M; H1 net income US$8.675M). Mercedes produced 30 koz gold in 2025 and ~1 Moz Au / ~4 Moz Ag since start-up, and Highlander's 7 Apr 2026 release describes it as having "made a positive cash contribution in its first month of operations following restructuring" with further improvement expected "in the coming years" -- an asset being kept and improved, not wound down. Real audited sales revenue from an operating mine clears the Task #516 PRODUCTION standard directly. Stage is anchored on Mercedes per the multi-project convention in the Stage enum doc comment (Task #99/VCU): stage = the furthest evidenced milestone on the company's MOST ADVANCED project, "never a blend/average across projects, and not necessarily whichever project is the market-narrative 'flagship'" -- Corani is the flagship, Mercedes is the most advanced. CORANI CHECKED SEPARATELY AND IS NOT CONSTRUCTION STAGE: its "largest fully permitted primary silver project in the world" claim is accurate and real (ESIA approved by Peru's MEM in 2013 on the 2011 FS; Ministry of Culture archaeological monitoring plan approved Jul 2018 completing the construction-linked permit set; construction and water-use permits in hand; full NI 43-101 Feasibility Study effective 17 Dec 2019 by Ausenco filed by Bear Creek), but NO construction decision/FID has been made -- the H1 2026 6-K prices the Corani NSR buyback options off an FID that has not happened ("6 months after a final investment decision (FID) is made", "[i]f the FID is obtained before December 31, 2028"), the staged-development Feasibility Study update targeted for end of Q3/26 is the document that would underpin any construction financing decision and had not been published as of this pass (22 Aug 2026), and the same filing states "[a]s at June 30, 2026, no significant environmental disturbance had been caused by the activities conducted on the Corani Project." The visible site activity (earthworks for internal roads/platforms, camp improvements, substation and powerline, access-road rehabilitation, a four-rig drill program from 7 Apr 2026) is EARLY WORKS AHEAD OF A DECISION; some third-party headlines frame it as "construction advancing" but the company's own regulatory filing does not, and the filing governs (same non-reliance/supersession test as Task #432/LVG and the Task #516 "not payable metal" standard). On Corani alone the highest defensible stage would be PERMITTING -- so the stored RESOURCE_DEFINITION was wrong under both readings; the most-advanced-project rule is what makes the answer PRODUCTION rather than PERMITTING. No evidence was found that Corani's permits have lapsed or been suspended; note that this pass could confirm the permits' grant/approval history but could NOT affirmatively verify a current statutory expiry date for the 2013 ESIA, so "fully permitted" is recorded as the company's current and uncontradicted claim rather than as an independently re-verified expiry check. stageEnteredAt = 2026-02-26 is the business-combination completion date -- Mercedes has been in commercial production since 1 Feb 2012, but that is when THIS COMPANY became a producer, and stageEnteredAt is a company-level field. Five Mercedes-anchored MinerConstructionMilestone rows were created alongside this change (the row previously had none, so raising the stage without them would have left live lifecycle-gate violations); dates are asserted only where a source pins them to the day. FLAGGED, NOT FIXED (separate follow-up, deliberately out of scope for a stage correction): this row's `description` and the San Luis body of `technicalReportNote` still describe HSLV as a pre-PEA single-asset explorer with "no PEA completed yet" and mention neither Corani nor Mercedes -- materially stale and now contradictory next to stage=PRODUCTION; `commodity`=SILVER and `projectName`="San Luis Gold-Silver Project" likewise no longer describe the stage-bearing asset; and ouncesFound (8.4 Moz Ag) is San Luis's figure, not Corani's or Mercedes's, so the deposit-data gate is being satisfied by a different project's number. Re-check when the staged-development Feasibility Study lands and when/if a Corani FID is announced. Sources: https://www.sec.gov/Archives/edgar/data/0002013223/000117184326004317/exh_991.htm ; https://highlandersilver.com/news/highlander-silver-provides-update-drilling-commences-at-corani-silver-project/ ; https://www.newsfilecorp.com/release/50866/Bear-Creek-Mining-Files-2019-NI-43101-Technical-Report-for-Corani-Project ; https://www.yamana.com/English/investors/news/news-details/2011/Yamana-Begins-Operations-at-the-Mercedes-Mine-in-Mexico/default.aspx ; highlandersilver.com news index (business combination completed 26 Feb 2026). Full reasoning: scripts/correct-hslv-stage-task537g.ts. [Task #573 descriptive-field rewrite, 2026-08-24] Rewrote `description` and `projectName`, added the asset-scope header above, and AFFIRMED `commodity` = SILVER unchanged. This closes the descriptive-field follow-up that Task #537g (commit bf22b06) deliberately flagged and left unfixed when it raised stage to PRODUCTION. PROJECTNAME: was "San Luis Gold-Silver Project, Ayacucho, Peru" -- single-asset, and it placed San Luis in AYACUCHO, which is a straight factual error. This row's own technicalReportNote, its MetricSource(projectLatitude) note quoting the SEC-filed NI 43-101 ("District of Shupluy, Yungay Province, Ancash Department, Peru"), and its stored coordinates (-9.3833 / -77.7833) all agree on ANCASH. Corrected, and the field now lists all three assets in the multi-asset producer format already used by HOC, EDR, APM, MAI and CTGO. DESCRIPTION: was a pre-PEA single-asset San Luis explorer framing that mentioned neither Mercedes nor Corani and read as a direct contradiction of stage=PRODUCTION. Rewritten around the post-combination reality: Mercedes producing (US$56.227M revenue and US$8.675M net income for H1 2026, ALL from Mercedes; 30 koz gold in 2025; ~1 Moz Au / ~4 Moz Ag since 2011 start-up), Corani the permitted-but-pre-FID flagship (staged-development feasibility study update targeted end of Q3/26; the H1 2026 filing still prices the Corani royalty buyback options off an FID that has not occurred), San Luis secondary. The San Luis resource figures from the prior description (356 koz Au @ 24.4 g/t, 8.4 Moz Ag @ 579 g/t, no PEA) are preserved verbatim -- they were correct, only the framing was wrong. COMMODITY = SILVER, AFFIRMED UNCHANGED after an explicit review against this repo's actual multi-commodity precedent (not decided from first principles). The primary tag in this DB follows the STATED FLAGSHIP, not revenue share: LCY (Task #106) kept primary=OTHER while gold was ~100% of revenue, explicitly rejecting a revenue-driven repoint; BBB (Task #106) held that a decisive capital-allocation shift is "not a change of stated flagship"; APMI (Task #153) and MM1 (Task #142) moved the tag only when the flagship project itself changed. Peer precedent is unanimous and includes a near-exact structural twin: HOC (Hochschild, PRODUCTION, Peru) is SILVER + secondary GOLD while carrying an outright gold mine (Mara Rosa) and reporting in gold-equivalent ounces; AG (First Majestic) is SILVER + secondary GOLD while selling 34,660 oz gold a quarter; GSVR, IPT, SM, USA, APM, AYA and EDR are all silver-primary producers with real gold/polymetallic output. COUNTER-ARGUMENT, RECORDED NOT SUPPRESSED (the SNG.V pattern): the asset carrying this row's stage=PRODUCTION is Mercedes, which is gold-dominant (30 koz Au in 2025; ~1 Moz Au vs ~4 Moz Ag lifetime), so gold is the large majority of actual revenue and a reader could reasonably argue the tag should follow the stage anchor. Rejected because the company is named and self-identifies as a silver company; its stated flagship Corani is a silver-lead-zinc deposit and the whole strategic thesis of the merger (the combination's own announcement headline was "...Combine to Create Leading Growth Company in the Silver Sector"); and the gold exposure is already correctly carried as a MinerCommodity(GOLD) secondary row, which is exactly what that table exists for. Unlike LCY, keeping SILVER manufactures no false claim -- Mercedes is a gold-SILVER mine and genuinely produces silver, so commodity=SILVER next to stage=PRODUCTION is true, just not revenue-weighted. REVISIT if Corani is sold, deprioritised or written down, or if the company rebrands away from silver -- at that point Mercedes would be both stage anchor and flagship and GOLD would become correct. Note aiscValue is null on this row, so the SILVER cost-curve basis in src/lib/cost-metrics.ts is currently inert either way. OUNCESFOUND = 8,400,000 LEFT UNCHANGED AND STILL FLAGGED AS OPEN -- deliberately not guessed. It remains San Luis's Indicated contained-silver figure, i.e. a SECONDARY project's number satisfying the CONSTRUCTION-or-later deposit-data gate on a PRODUCTION row (dcfNpvUsd and mineLifeYears are both null, so ouncesFound is the only thing satisfying that gate; clearing it would open a live violation). The correct replacement is Corani's own reserve base. A candidate figure exists -- the 2019 feasibility study's P&P reserves of 139.1 Mt @ 50.3 g/t Ag / 0.9% Pb / 0.59% Zn, roughly 225 Moz contained silver -- but it is NOT written here because (1) this pass reached it only through a secondary aggregator summary, not the NI 43-101 itself; (2) the staged-development feasibility study update targeted for end of Q3/26 will restate Corani's reserves within weeks, so writing a weakly-sourced 2019 number immediately before its supersession is the worst available timing; and (3) changing it also forces the ouncesFoundUnit / metal-basis question and silently moves this company between resource-size tiers and match buckets -- a deposit-data pass, which is what Task #537g itself said this should be. NEEDS ITS OWN TASK NUMBER; also flagged on MetricStatus(ouncesFound).note. STILL OPEN from Task #537g, unchanged by this pass: no current statutory expiry date for Corani's 2013 ESIA was independently re-verified, so "fully permitted" remains the company's current and uncontradicted claim rather than an independently checked one. NOT TOUCHED by this pass: stage, stageEnteredAt, the five Mercedes-anchored milestone rows, currentMilestoneLabel/Date, ouncesFound's value, and the Project table (which still holds a single San Luis row at stage=RESOURCE_DEFINITION -- real Mercedes and Corani Project rows are a separate gap, not created here). Sources: https://www.sec.gov/Archives/edgar/data/0002013223/000117184326004317/exh_991.htm ; https://highlandersilver.com/news/highlander-silver-provides-update-drilling-commences-at-corani-silver-project/ ; https://www.newsfilecorp.com/release/50866/Bear-Creek-Mining-Files-2019-NI-43101-Technical-Report-for-Corani-Project ; https://highlandersilver.com/news/highlander-silver-and-bear-creek-mining-combine-to-create-leading-growth-company-in-the-silver-sector/ ; https://www.sec.gov/Archives/edgar/data/2013223/000121390026021707/ea027235501ex99-23_high.htm ; https://www.sec.gov/Archives/edgar/data/1261252/000121716009000198/sanluistechreport.htm . Full reasoning: scripts/fix-hslv-descriptive-fields-task573.ts. [Task #574 deposit-data pass, 2026-08-24] ouncesFound corrected 8,400,000 -> 331,400,000 contained troy oz silver, closing the flag Task #573 (commit 7342f0f) raised and deliberately left open. CORANI MINERAL RESERVE AND RESOURCE STATEMENT, read directly out of the SEC-filed primary document (Highlander Silver news release 19 Dec 2025, EX-99.62 to Form 40FR12B, https://www.sec.gov/Archives/edgar/data/2013223/000121390026021707/ea027235501ex99-62_high.htm), which states the figures "have been taken from the 2019 Feasibility Study, a copy of which is filed on Bear Creek's SEDAR+ profile". MINERAL RESERVES: Proven 20 Mt @ 59.7 g/t Ag / 1.00% Pb / 0.60% Zn (39 Moz Ag, 450 Mlb Pb, 269 Mlb Zn); Probable 118 Mt @ 49.9 g/t Ag / 0.88% Pb / 0.55% Zn (190 Moz Ag, 2,292 Mlb Pb, 1,426 Mlb Zn); PROVEN & PROBABLE 139 Mt @ 51.3 g/t Ag / 0.90% Pb / 0.55% Zn = 229 Moz Ag, 2,742 Mlb Pb, 1,694 Mlb Zn. Reserve effective date 5 November 2019; estimated at US$20.00/oz Ag, US$1.00/lb Zn, US$0.95/lb Pb on a revenue-factor-1.00 pit shell, with economic viability demonstrated at US$18.00/oz Ag, US$1.10/lb Zn, US$0.95/lb Pb; NSR cutoff >= US$10.79/t. MINERAL RESOURCES (INCLUSIVE OF MINERAL RESERVES): Measured 31 Mt @ 50.0 g/t Ag (49 Moz Ag); Indicated 208 Mt @ 40.9 g/t Ag (274 Moz Ag); MEASURED & INDICATED 239 Mt @ 42.1 g/t Ag / 0.66% Pb / 0.44% Zn = 323 Moz Ag, 3,466 Mlb Pb, 2,313 Mlb Zn; INFERRED 73 Mt @ 35.5 g/t Ag = 84 Moz Ag, 641 Mlb Pb, 484 Mlb Zn. Underlying report: "Bear Creek Mining Corani Project NI 43-101 Technical Report" dated 17 December 2019; Terre Lane (MMSA, Principal Mining Engineer, GRE) is the QP for Mineral Resource and Reserve Estimates and Mining Methods; the report was coordinated by Ausenco Services Pty Ltd. 2019 FS economics (Bear Creek's own 5 Nov 2019 results release): after-tax NPV5 US$531M, NPV8 US$369M, IRR 22.9%, initial capital US$579M, payback 2.4 years, 27,000 t/d, LOM AISC US$4.55/oz Ag, 15-year mine life, average annual payable production 9.6 Moz Ag / 98 Mlb Pb / 69 Mlb Zn. WHAT WAS WRITTEN AND WHY: ouncesFound = Corani M+I 323 Moz + San Luis Indicated 8.4 Moz = 331.4 Moz, contained silver, M+I category, 100%-project basis. Additive per playbook 7.1 across two wholly-owned projects at the same category (precedent AGLD). M+I rather than the P&P reserve because the playbook permits a P&P substitute only where no separate M+I is disclosed, and Corani discloses both -- resources are stated "inclusive of Mineral Reserves", so 323 Moz already contains the 229 Moz P&P and nothing is double-counted. Inferred is excluded per the same rule and recorded here instead. METAL BASIS RESOLVED: CONTAINED SILVER, not silver-equivalent -- the statement reports Ag, Pb and Zn in three separate contained-metal columns (M oz / M lb / M lb) and the strings "equivalent" and "AgEq" each occur ZERO times in the filing. Rule 2 (CuEq/AuEq exclusion) tested and does not bite: at the FS's own base-case prices silver is ~51% of LOM revenue (9.6 Moz x $18.00 vs 98 Mlb Pb x $0.95 vs 69 Mlb Zn x $1.10), the largest single contributor and the economic driver, not a by-product credit. MERCEDES IS EXCLUDED from the sum: no current disclosed M+I containing silver was retrieved this pass; the omission is conservative and explicit. ROYALTIES ARE NOT OWNERSHIP: Royal Gold holds an aggregate 2.75% secured NSR on Corani and Equinox 0.5%, but these are net smelter return royalties, not ownership dilution -- and ouncesFound is never scaled by ownership in any case (playbook Rule 1). FS UPDATE HAS SLIPPED: the staged-development Feasibility Study update that Task #537g and Task #573 both recorded as targeted for end of Q3/26 is now stated as "to be completed in Q4/26" in the Q2 2026 MD&A dated 12 Aug 2026 (https://www.sec.gov/Archives/edgar/data/2013223/000121390026088535/ea030166101ex99-2.htm), which also names AMC Mining Consultants (not MINSYS Mining Systems, named in April) for "Resource, reserves and mine planning", with Ausenco Engineering now scoped to "Processing plant and infrastructure". No 2026 restatement of Corani's reserves or resources exists in any Highlander SEC filing, so the 2019 FS remains the current authoritative estimate. RECOMPUTE this figure when the Q4/26 study publishes. dcfNpvUsd and mineLifeYears REMAIN NULL by convention -- Corani's 2019 FS economics above describe Corani alone and must not be written into company-level fields alongside a producing Mercedes and a secondary San Luis (playbook 7.1: NPV/IRR/mine-life are never combined across projects). Full reasoning: scripts/correct-hslv-ouncesfound-task574.ts and research-notes/task574-hslv-corani-ouncesfound-2026-08-24.md.