Tinka Resources: Unlocking $434M NPV in Peru’s Zinc Market

Investor Insight

Tinka Resources offers early high-grade zinc and silver opportunities for investors through a diversified portfolio in the Americas, led by its 100 percent-owned flagship Ayawilca project in Peru.

Overview

Canadian mineral exploration and development company Tinka Resources (TSXV:TK, OTCQX: TKRFF) is focused on precious and critical metal assets in Central Peru with its flagship Ayawilca asset. Ayawilca’s 2024 PEA boasts compelling economics with an NPV of US$434 million after-tax and a 20-year mine life, and offers substantial upside for silver as the Colquipucro deposit was not incorporated into the PEA. It also represents an advanced investment opportunity for silver and base metals in Peru, as the country is usually known for its copper deposits.

Aside from Ayawilca, the company holds the adjacent Silvia copper-gold project acquired from BHP in 2021. The 10,900 hectare Silvia project is located within an area renowned for deposits rich in copper and gold. In 2025, the company carried out an initial phase of drilling at a target known as Silvia NW. A follow-up ground geophysical program in 2026 identified two large low-resistivity anomalies (conductors) underneath copper bearing outcrops which represent high priority drill targets.

Through its subsidiary Tinka Saudi Resources, Tinka Resources also holds a 5 percent stake in the Huwaymidan Gold project in central Saudi Arabia, which is largely owned by Midad Al Mona. The project boasts surface trench results up to 2.5 meters at 10 g/t gold, yet to be tested with drilling. A drill program is in progress.

Led by a veteran management team and board of directors with a celebrated track record of multi-million-ounce discoveries, corporate mergers and successful mine developments across Latin America, Tinka Resources aims to bring its core assets from the advanced exploration stage into profitable, multi-concentrate mining operations.

Company Highlights

• Investment-friendly location: Peru is pursuing a favourable legal framework to attract foreign investors, providing equal opportunities to foreign and local investors and therefore supporting mining exploration and development companies in marketing projects.
• Large-scale portfolio: Tinka Resources holds a total of 66 granted mining concessions in the world-class mining belt of central Peru, covering 21,700 hectares or 217 square kilometers with excellent infrastructure and road access.
• Robust flagship project resource: The Ayawilca polymetallic project has a total of 30 million ounces of silver in indicated resources and 3.6 billion pounds of zinc, with significant exploration potential for silver and tin, including inferred resources.
• Colquipucro silver resource: The Colquipucro silver deposit, located 2 km from Ayawilca, has near-surface mineral resources containing 15 million ounces of silver in indicated resources and 13 million ounces in inferred resources within a conceptual open pit (based on 2016 mineral resource using a $24 per ounce silver price).
• Compelling project economics: The 2024 preliminary economic assessment (PEA) for Ayawilca (excluding Colquipucro) boasts a net present value (NPV) of US$434 million after-tax and a 20-year mine life, alongside a 29.5 percent internal rate of return (IRR) after tax.
• Fully funded 2026 program: Closed C$14.2 million placement in late 2025 will support a roughly 5,000-meter drilling program at Ayawilca scheduled for the fourth quarter of 2026 and beyond.
• Established relationship with local communities: Tinka holds a 12-year track record of progressive local community relations and active structural social licensing, with a 3-year renewal of community social agreement to be signed in 2026.

Key Projects

Ayawilca Zinc-Silver-Tin Project

Ayawilca is a large polymetallic sulphide mineral resource located 200 kilometers north of Lima in the Pasco region of central Peru. Tinka has completed over 100,000 meters of diamond drilling on the property, building on a PEA base case of 2 million tonnes per year in 2024.

The PEA indicates that Ayawilca has a 20-year mine life and an NPV of US$434 million after-tax (US$732 million pre-tax), alongside a 29.5 percent IRR after tax. It used a silver price of US$22 per ounce in 2024, representing substantial upside with a 2026 silver spot price of approximately US$60 to 70 per ounce. Colquipucro was also not incorporated into the PEA.

The project is categorized into three zones:

• Zinc Zone: Contains an indicated resource of 3.6 billion pounds of zinc and 14.9 million ounces of silver (28 million tonnes at 7 percent zinc).

• Tin Zone: Hosts an Inferred Resource of 200 million pounds of tin (13 million tonnes at 0.76 percent tin) that remains open for expansion.
• Silver Zone: High-grade, silver-rich vein structures cut across the deposit, and 3D structural modeling has mapped out six distinct silver veins at West Ayawilca targeted for a 5,000-meter drilling program.

“We continue to make good progress in our discussions with local communities to extend our social agreement for an additional three years,”said President and CEO Dr. Graham Carman. “Tinka has been working with these same communities for over 10 years, with signed

agreements renewed multiple times. Our relationship with the communities remains strong.”

Colquipucro Silver Deposit

Situated 2 kilometers north of the Ayawilca Zinc Zone, Colquipucro is a disseminated silver deposit hosted in sandstones. It holds potential for low-strip, open-pit mining with oxidized mineralization with an indicated resource of 14.3 million ounces of silver grading 60 g/t, and an inferred resource of 13.2 million ounces of silver grading 48 g/t, calculated across historical drill programs totaling 8,700 meters (2016 mineral resource used $24/oz silver price)

Tinka Resources is aggressively re-evaluating Colquipucro and internal studies are underway to evaluate the project at higher silver prices based on long-term benchmarks. The deposit was not included in the 2024 PEA.

Silvia Copper-Gold Project

Acquired from BHP in 2021, the Silvia copper-gold project consists of 16 contiguous concessions spanning 10,906 hectares in Huanuco, Central Peru, located 100 kilometers south of the giant Antamina mine. It is adjacent to the flagship Ayawilca project and within the highly mineralized Andean belt, an area known for rich copper and gold deposits.

The company notes that copper mineralization at the project is associated with chalcopyrite, while gold is present as native gold. Results from an initial 1.400 meter drill program at the project demonstrated up to 15.1 meters at 0.17 percent copper and 0.26 g/t gold from 18.5-meter depth, including 4.1 meters at 0.54 percent copper and 0.86 g/t gold.

A ground magnetotellurics (MT) geophysical survey covering several targets over at the full target area at Silvia NW was completed in July 2026.

Management Team

Brandon Macdonald – Executive Chairman and Director

With experience in exploration geology, mining operations, capital markets, and M&A finance, Macdonald is a professional geologist with tenure at Macquarie Bank London. He was the founding CEO of Fireweed Metals, owner of the Macpass zinc project in Canada and currently serves on the board of Enduro Metals.

Dr. Graham Carman – President, CEO and Director

A geologist with over 25 years of South American exploration expertise, Carman lived in Peru for less than a decade and assessed Peruvian projects for major mining companies such as Rio Tinto, Savage Resources and Pasminco. He contributed to zinc-lead discoveries Yanque and Accha and the Bongara zinc asset, all in Peru. He completed his PhD on the geology of the Lihir Island gold deposit in Papua New Guinea from 1990 to 1993 at Monash University.

Benedict McKeown – Director

A mining engineer with over 30 years of resource experience, McKeown has worked across various sectors and in several jurisdictions including iron ore, lithium, precious metals, base metals and oil and gas. He held roles in multiple companies, including Ferrous Resources and Rincon Lithium and was a partner at the mining-focused private equity firm Sentient Group for a decade.

Mary L. Little – Director

With over 25 years of experience evaluating Latin American precious metals environments, Little is an earth scientist known for leading Mirasol Resources for over a decade. She currently serves on the board of Sandstorm Gold and Pure Energy Minerals.

Jones Belther – Director

Belther is a corporate geologist who concurrently serves as the Senior VP of Mineral Exploration & Technology at Nexa Resources SA, anchoring deep operational ties within Latin American mining networks.

Michael Horner – Director

Horner is a corporate finance and chemical engineering professional with over a decade of capital markets and operational experience. He is the CFO of Adriatic Metals, where he led the US$1.5B sale to DPM Metals and raised over US$100M through the development phase of the Vares zinc-silver project.

Alejandro Hermoza — Director

Hermoza is a board nominee of Compañía de Minas Buenaventura, one of Tinka’s largest shareholders. He holds over 20 years of leadership experience in sustainability, environmental and social affairs, community relations and corporate governance, having served as Vice President of Sustainability at Buenaventura for 15 years.