DENARIUS METALS ANNOUNCES SECOND QUARTER AND FIRST HALF 2026 FINANCIAL RESULTS

TORONTO, Aug. 13, 2026 /CNW/ -- Denarius Metals Corp. (Cboe CA: DMET) (OTCQX: DNRSF) ("Denarius Metals" or "the Company") announced today that it has filed its unaudited interim condensed consolidated financial statements and accompanying management's discussion and analysis (MD&A) for the three and six months ended June 30, 2026. These documents can be found on its website at www.denariusmetals.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca. All financial figures contained herein are expressed in U.S. dollars unless otherwise noted. Non-GAAP financial performance measures in this press release are identified with "^NG". For a detailed description of each of the non-GAAP measures used in this press release and a detailed reconciliation to the most directly comparable measure under IFRS, please refer to the Company's MD&A.

Early production continued to ramp up in the second quarter of 2026 at Denarius Metals' Zancudo Project in Colombia as the Company advances construction at its new 1,000 tonnes per day processing plant. During the second quarter of 2026, the Company delivered a total of 3,907 tonnes of mined material to a local port for sale to Trafigura Pte. Ltd. ("Trafigura"), representing a 67% increase compared with the first quarter this year. Head grades remained solid in the second quarter of 2026, averaging 11.3 g/t for gold and 217.1 g/t for silver. These shipments contained approximately 1,416 ounces of gold and 27,265 ounces of silver. Payable gold and silver in the second quarter of 2026, net of final liquidation adjustments from previous deliveries, amounted to 923 ounces and 9,304 ounces, respectively. This brought the total payable production for the first half of 2026 to 1,516 ounces of gold and 17,143 ounces of silver. Payable production in the first half of 2025 included only the Company's first shipment of 64 tonnes to Trafigura in June 2025 yielding 13 ounces of gold and 136 ounces of silver.

		Second Quarter				First Half
		2026		2025		2026	2025
Operating data
Gold sold (ounces)		923		13		1,516	13
Average realized gold price ($/oz sold) ^NG		$       4,536		$   3,303		$       4,667	$   3,303
Total cash cost ($/oz sold) ^NG		$       2,513		2,260		$       2,463	2,260
Financial data ($000's except per share)
Revenue		$       4,920		$        49		$       8,447	$           49
Gross profit		1,868		14		3,341	14
Loss from operations		(197)		(1,413)		(922)	(2,695)
Net income (loss)		8,270		(5,012)		(10,140)	(9,255)
Per share – basic and diluted		0.04		(0.05)		(0.05)	(0.09)
Exploration and capital expenditures		3,347		2,094		5,447	3,221

		June 30,	December 31,
		2026	2025
Balance sheet ($000's):
Cash and cash equivalents		$      18,947	$        6,899
Total assets		135,910	112,623
Convertible Debentures (at fair value) ^(1)		51,573	55,559

(1)

As at June 30, 2026 and December 31, 2025, the total principal amount of Convertible Debentures issued and outstanding amounted to CA$34.2 million (equivalent to approximately $24.0 million). Subsequent to June 30, 2026, the Company fully redeemed the Convertible Debentures with common shares on July 31, 2026.

Total revenue in the second quarter of 2026 amounted to $4.9 million bringing the total revenue for the first half of 2026 to $8.4 million, up from $1.7 million of revenue recorded in its full 2025 fiscal year. In the first half of 2026, the average realized gold price ^NG was $4,667 per ounce sold and the total cash costs ^NG was $2,463 per ounce of gold sold. The Company generated a gross profit of $1.9 million in the second quarter of 2026 bringing the total for the first half of 2026 to $3.3 million, equivalent to approximately 40% of total revenue.

The Company reported net income of $8.3 million ($0.04 per share) in the second quarter of 2026 compared with a net loss in the second quarter of 2025 of $5.0 million ($0.05 per share). The improvement in the Company's net earnings in the second quarter of 2026 compared with the second quarter last year can be attributed to the gross profit from gold and silver sales of $1.9 million and the non-cash gain recognized on financial instruments of $15.5 million in the second quarter this year, partially offset by an increase in finance costs associated with the Convertible Debentures due to the commencement of the Series 1 Debentures' gold premiums in 2026. This brought the net loss for the first half of 2026 to $10.1 million ($0.05 per share), up from $9.3 million ($0.09 per share) in the first half last year.

The Company successfully took a major step forward to improve its future liquidity by fully retiring its Convertible Debentures on July 31, 2026 through an early redemption using its common shares. At June 30, 2026, the Company had a total of CA$34.2 million (equivalent to approximately $24.0 million) principal amount of Convertible Debentures issued and outstanding with a fair value of $51.6 million, included in the Company's current liabilities. At June 30, 2026, the Company had a working capital deficit of $38.8 million. Retiring the Convertible Debentures improves the Company's adjusted working capital at June 30, 2026 to $12.8 million. It also eliminates a source of volatility in the Company's earnings driven by the quarterly fair value adjustments recognized on financial instruments in the statement of operations. However, more important to the Company's decision to retire the Convertible Debentures is the positive impact on its future cash flow achieved through the elimination of payments for gold premiums and interest associated with the Convertible Debentures, estimated to total approximately CA$157 million over the next four years.

As at June 30, 2026, the Company's cash position stood at $18.9 million, up from $6.9 million at the end of 2025. A key contributor to the Company's growth in its cash position in the first half of 2026 was the receipt of $18.0 million from the exercise of warrants. The Company also received $3.5 million of additional funding in June 2026 from Trafigura pursuant to the Zancudo Prepayment Facility. These funds are being used to fund construction at its Zancudo Project. Also in June 2026, Trafigura agreed to increase the Zancudo Prepayment Facility from $9 million to $16 million. The additional financing of $7 million is available to be drawn by the Company in one or more tranches during the second half of 2026 to fund its current exploration program at Zancudo and to fund the accelerated mine development in the Las Brisas area of the Zancudo deposit.

In April 2026, the Company commenced a 15,100 meters diamond drilling campaign at the Zancudo Project, primarily focused on in-fill drilling to convert additional Inferred resources to the Indicated category. The campaign also includes 3,200 meters of brownfield drilling with the objective of increasing resources in the next mineral resource update expected to be completed in late 2026. In July 2026, the Company announced that multiple high gold and silver grade intercepts were intersected in the first four in-fill drill holes completed on the Las Brisas Target, providing further confirmation of the high-grade nature of the mineralization previously modelled on the Manto Antiguo and Santa Catalina structures. Further updates will be provided by the Company as drill results become available through the course of this year's drilling campaign.

In Spain, the Company, as operator of the Aguablanca Project, continues on a path to re-start operations with production expected to begin by mid-2027. At the end of the first quarter of 2026, the Company, on behalf of the Rio Narcea Recursos, S.A. ("RNR") joint venture, closed a private placement in two tranches of $7.5 million of five-year, 12% secured notes issued directly by RNR (the "RNR Notes"). RNR recently signed a term sheet with a third party for a $25 million senior secured facility to be undertaken by RNR that is expected to be finalized by the end of the third quarter of 2026. Early-stage dewatering activities have commenced and electrical maintenance work is in process at the RNR plant. Once the senior secured facility is in place, the RNR joint venture will be in a position to fully engage in the activities to dewater the underground mine, and in conjunction with the work to be carried out by METSO, to re-start Aguablanca's 5,000 tonnes per day processing plant.

On August 6, 2026, the Company announced it is making a strategic investment to acquire a 15.6% equity interest in Copper Giant Resources Corp. ("Copper Giant") through a CA$28.8 million subscription in a non-brokered private placement with Copper Giant, giving the Company exposure to Copper Giant's world class Mocoa copper-molybdenum deposit located in the Putumayo Department of southern Colombia. To fund this investment, the Company has agreed to issue 67,000,000 common shares and 12,500,000 warrants in a non-brokered private placement with Trafigura for cash proceeds of CA$28.8 million.

About Denarius Metals

Denarius Metals is a Canadian junior company engaged in the acquisition, exploration, development and eventual operation of precious metals and polymetallic mining projects in high-grade districts in Colombia and Spain. Denarius Metals is listed on Cboe Canada where it trades under the symbol "DMET". The Company also trades on the OTCQX Market in the United States under the symbol "DNRSF".

In Colombia, Denarius Metals is producing gold and silver in an "early production" phase at its 100%-owned Zancudo Project while it completes construction of a 1,000 tonnes per day processing plant that is expected to start producing high-grade gold-silver concentrates in the fourth quarter of 2026. The Zancudo Project is a high-grade gold-silver deposit, which includes the historic producing Independencia mine, and is located in the Cauca Belt, about 30 km southwest of Medellin.

In Spain, Denarius Metals has interests in three projects focused on in-demand critical minerals. The Company owns a 21.8% interest in Rio Narcea Recursos, S.L. and is the operator of its Aguablanca Project, which has been recognized by the EU as a Strategic Project. The Aguablanca Project comprises a turnkey 5,000 tonnes per day processing plant and the rights to exploit the historic producing Aguablanca nickel-copper mine, located in Monesterio, Extremadura. Denarius Metals also owns a 100% interest in the Lomero Project, a polymetallic deposit located on the Spanish side of the prolific copper rich Iberian Pyrite Belt, approximately 88 km southwest of the Aguablanca Project, and a 100% interest in the Toral Project, a high-grade zinc-lead-silver deposit located in the Leon Province, Northern Spain.

Denarius Metals entered into a strategic collaboration in early 2026 as JV partners with ProGrowth Ltd. Company, a Saudi-based diversified group of companies, focused on the processing, smelting and commercialization of material sourced from the Company's projects and to identify, acquire, develop and operate gold and nickel mining concessions within the KSA.

Additional information on Denarius Metals can be found on its website at www.denariusmetals.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca.

Cautionary Statement on Forward-Looking Information

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to anticipated business plans or strategies, including the timing to commence commercial concentrate production at the Zancudo Project, the timing and completion of the senior secured financing and the re-start of operations at the Aguablanca Project, the financial impact of the early redemption of the Convertible Debentures, the timing and amounts to be drawn under the Zancudo Prepayment Facility, the ongoing results from the Zancudo drilling program and the closing of the Copper Giant investment and associated private placement by the Company. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Denarius Metals to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated March 31, 2026 which is available for view on SEDAR+ at www.sedarplus.ca. Forward-looking statements contained herein are made as of the date of this press release and Denarius Metals disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

SOURCE Denarius Metals Corp.

For Further Information, Contact: Michael Davies, Chief Financial Officer, [phone], [email protected]