Discovery Reports Strong Earnings Growth and Cash Generation in Q4 2025

Press Release

Cash of $410.7 million at December 31, 2025

75% INCREASE IN ADJUSTED EPS

• Net earnings $65.3M or $0.08/share, with adjusted net earnings¹ of $113.5M or $0.14/share versus $61.1M or $0.08/share in Q3 2025

6% GROWTH IN GOLD PRODUCTION

• 66,718 oz produced versus 63,154 oz in Q3 2025

12% IMPROVEMENT IN OPERATING CASH COSTS

• Operating cash costs¹ of $1,185/oz sold compared to $1,339/oz in Q3 2025

AISC REFLECTS HIGHER SUSTAINING CAPITAL¹

• AISC/oz^1,2 averaged $2,034; Site-level AISC/oz³ averaged $1,824

INVESTING TO IMPROVE AND GROW PORCUPINE

• Sustaining capital expenditures¹ of $33.8M, with growth capital expenditures¹ of $66.1M versus $20.8M and $44.4M, respectively, in Q3 2025

STRONG CASH FLOW FROM GOLD SALES

• Net cash from operating activities of $163.2M; Free cash flow¹ of $67.9M

20% GROWTH IN CASH POSITION

• Cash at December 31, 2025, of $410.7M, with $250M of liquidity from an undrawn revolving credit facility and $100M accordion feature

EXPLORATION SUCCESS AT ALL TARGETS

• Excellent drill results from resource conversion and expansion drilling at Hoyle Pond, Borden and Pamour, continued success at Owl Creek, and encourage initial results from Dome, TVZ and Broulan Pit

2026 GUIDANCE INCLUDES SOLID PRODUCTION GROWTH, INVESTMENTS FOR THE FUTURE

• 2026 guidance includes back half weighted production of 260 – 300 koz; operating cash costs/oz of $1,250 – $1,400, AISC/oz of $1,950 – $2,250; front half weighted sustaining capital expenditures of $120M – $165M and growth capital expenditures of $195M – $235M

1. Example of Non-GAAP measure. See the section in this press release entitled, “NON-GAAP MEASURES” for more information.
2. Refers to all-in sustaining costs per ounce sold.
3. Site-level AISC includes corporate G&A allocation and excludes remaining corporate G&A, share-based compensation costs and corporate-level sustaining capital expenditures.

February 19, 2026, Toronto, Ontario – Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF) (“Discovery” or the “Company”) today announced the Company’s financial and operating results for the fourth quarter (“Q4 2025”) and full year of 2025 (“FY 2025”). Discovery began reporting the results of gold production and sales following the Company’s acquisition (“Acquisition” or “Porcupine Acquisition”) of the Porcupine Complex (“Porcupine”) in and near Timmins, Ontario on April 15, 2025. The Company’s full financial statements and management discussion & analysis are available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.discoverysilver.com. All dollar amounts are in US dollars, unless otherwise noted.

Tony Makuch, Discovery’s CEO, commented: “We have built considerable momentum since acquiring Porcupine last April, with production in Q4 2025 totaling 66,718 ounces and operating cash costs improving to $1,185/oz.  AISC has remained relatively unchanged as we have increased sustaining capital expenditures to provide needed investment for the Porcupine operations to achieve their full value potential. Our solid operating performance, in combination with higher gold prices, has resulted in improved profitability and substantial cash flow generation. We ended 2025 with a very strong financial position, with cash totaling $410.7 million and no debt.

“Another key area of accomplishment has been exploration. Last week, we reported excellent drilling results across our key Porcupine targets, including additional high-grade intersections from resource conversion and extension drilling at Hoyle Pond, Borden and Pamour; district drilling success at Owl Creek, as well as at the new Broulan target near Pamour; and very encouraging initial drilling results from our two key near-term growth projects, Dome and TVZ.

“Looking ahead, we issued our 2026 guidance today with our Q4 2025 results. The guidance includes significant production growth, reflecting higher output at Hoyle Pond and Borden, as well as increased production from open pit sources, including both Pamour and Hollinger, where we are currently resuming operations. Unit costs will be near the top of the target ranges in the first half of the year and improve significantly over the final six months as production levels increase, sustaining capital declines and we benefit from our investments in equipment,  development and infrastructure at our operations. We will also be investing $55 – $75 million in exploration, which is a direct result of the success we are achieving and the tremendous upside we see at all our Porcupine operations and projects.”

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