Defiance Silver Closes Initial Tranche of Private Placement

Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") has successfully closed the first tranche of its non-brokered private placement (the "Offering"), raising C$2,613,900 in aggregate gross proceeds. The Offering was priced at C$0.20 per Unit, with each Unit consisting of one common share of the Company and one-half of one common share purchase warrant. The net proceeds will be used for exploration and general working capital purposes.

The Offering remains subject to the final approval of the TSX Venture Exchange. In connection with the closing of the Offering, the Company paid finder's fees comprised of an aggregate cash commission of $146,809.00 and an aggregate of 633,870 non-transferable warrants to arm-length finders. Each Finder Warrant entitles the holder to purchase common shares of the Company at a price of C$0.20 per common share for a period of two (2) years following the Closing Date.

The closing of the Offering represents an increase in Defiance Silver's market capitalization, which could potentially impact the Company's share price. The issuance of new shares could potentially dilute the value of existing shares, leading to a decrease in the share price. However, the increase in market capitalization could also attract more investors, potentially leading to an increase in the share price. The net proceeds of the Offering will be used for exploration and general working capital purposes, which could potentially lead to an increase in the Company's value and share price.

Defiance Silver's strategic objectives align with the funding from the private placement. The Company aims to expand its projects through capital-efficient exploration focused on resource growth and new mineral discoveries. The Zacatecas project in Mexico, one of the most prolific silver regions historically, offers leverage to rising silver prices, while the Tepal project in Michoacán State provides added gold-copper optionality. The funding from the private placement will help Defiance Silver to further explore and develop these projects, potentially leading to increased resource potential and optionality.

In conclusion, Defiance Silver's successful closing of the initial tranche of its private placement aligns with the Company's strategic objectives, providing capital for exploration and working capital purposes. The Offering's impact on the Company's share price and market capitalization is complex and depends on various factors, including the Company's future performance, market conditions, and investor sentiment. While the issuance of new shares could potentially lead to a decrease in the share price due to dilution, the increase in market capitalization and the use of funds for exploration and working capital purposes could potentially lead to an increase in the share price. The finder's fees could also potentially lead to an increase in the share price, as the finders may be incentivized to promote the Company and attract more investors.