What you need to know: • CAPT reported assay results from eight holes headlined by 1,071 g/t AgEq over 2.0m within a broader 250 g/t over 15.8m. • Drilling continues to display vertical continuity of mineralization, and grades and width are improving at depth. • Capitan has now confirmed continuity over 2.5km of strike at an average depth of 250m, and the system remains open for further growth. • A fourth drill rig arrived on site last week, completing the fleet for the aggressive 60,000m campaign, with 54 holes pending final assays. This morning, Capitan Silver (CAPT:TSXV, CAPTF:OTC) reported assay results from eight holes from its 60,000m 2026 drill program at the Cruz de Plata Project in Durango, Mexico. The release was headlined by Hole 26-ERDD-10, which intersected 1,071 g/t AgEq over 2.0m within a broader interval of 250 g/t AgEq over 15.8m. Multiple holes extended down-dip mineralization, with widths and grades improving at depth. CAPT has now confirmed continuity >2.5km of strike, at an average depth of ~250m, and continues to grow the large-scale system with four drills now on site to ramp up the drill campaign. We are maintaining our BUY rating and target price of $3.50/share on Capitan Silver. As CAPT advances deeper in the system, mineralization is widening with improving grades, while also discovering new zones of mineralization. Hole 26-ERDD-10, which was drilled on the same section as hole 26-ERRC-48 reported in April (read our note here), displayed this trend, returning significant grades within a wider interval, successfully extending high-grade mineralization a further 50m down-dip. While Hole 10 was the headline, several holes displayed vertical down-dip continuity of silver mineralization. Hole 26-ERDD-01 returned 394.4 g/t AgEq over 1.7m in the upper zone, and 620.3 g/t AgEq over 2m within 182.6 g/t over 7.9m in the lower zone, discovering a new high-grade zone at depth, and extending mineralization a further 55m down-dip. Hole 26-SRRC-12 intersected 280.5 g/t AgEq over 6.1m within a broader 167.2 g/t over 16.9m, which extended mineralization a further 90m down-dip, cumulatively displaying the significant potential for scale in the system, which we expect will continue to grow as the lack of base metals suggests drilling remains high in the epithermal system that remains open at depth. This morning’s release follows the first batch of drilling from the 60,000m program reported last month, which included 23 holes, and similarly displayed improving widths and grades deeper in the system. Drilling included an intercept of 934.6 g/t AgEq over 1.3m within a broader 157.3 g/t over 20.0m (26-ERDD-08), extending mineralization 150m deeper in the area. We discuss the May 11th release in further detail below. The Company has now defined mineralization at the Jesus Maria Main Vein over 2.5km of strike at an average depth of 250m. Importantly, the silver vein is only one of several that make up the Jesus Maria Silver Trend, with >21km of mineralized vein structures identified.