Mithril Reports 10.9 G/T Aueq (7.19 G/T Gold, 260 G/T Silver) Over 8.03m, Extending Target 1 Area By 300 Metres, At Copalquin, Mexico

On October 16, 2025, Mithril Silver and Gold reported high-grade drill results from its ongoing resource expansion program at the Target 1 area of the Copalquin project in Mexico. The key intercepts include: * Hole MTH-RE25-45: 8.03 metres (m) grading 7.19 g/t gold (Au) and 260 g/t silver (Ag), for a gold equivalent (AuEq) of 10.9 g/t. This included a higher-grade sub-interval of 4.40 m grading 9.87 g/t Au and 507 g/t Ag. * Hole MTH-RE25-44: 7.20 m grading 2.78 g/t Au and 148 g/t Ag.

These results successfully extend the mineralized strike continuity of the Target 1 area by over 300 metres to the west, an increase of more than 30%. The company also noted that drilling is rapidly progressing at Target 5 (11 holes completed, assays pending) and that Target 3 is being advanced to a drill-ready state. A district-wide aerial magnetic survey is set to commence in late October 2025.

The news is materially positive. The assay results, particularly from hole MTH-RE25-45, are excellent, demonstrating both high grades and significant width. This successfully confirms a 300-metre step-out on the main resource structure, as anticipated in the October 9, 2025 news release. This extension is a meaningful addition to the Target 1 resource footprint and should have a positive impact on the upcoming Mineral Resource Estimate (MRE).

However, the analysis must be viewed in the context of the company's past projections. The MRE for Target 1 has been subject to repeated delays: * Initially guided for completion by the end of Q1 2025. * Pushed to late May 2025 (as per the April 10 release). * Further delayed to H2 2025 (as per the July 29 release).

While today's drill results are strong and build confidence in the quality of the deposit, the persistent delays in delivering the cornerstone MRE catalyst are a significant concern and reflect poorly on management's ability to meet stated timelines.

The update also confirms that assays for 11 holes from the maiden drill program at Target 5 are still pending. These results will be critical in validating the potential of a second major mineralized zone within the district.

Overall, the drill results are a clear operational success and de-risk the western extension of Target 1. The market reaction should be positive, but investor enthusiasm may be tempered by the history of missed deadlines for the MRE.

Mithril Silver and Gold Limited is a precious metals exploration company focused on its flagship Copalquin Gold-Silver Project in Durango State, Mexico. The project is a district-scale, 70 km² land package containing over 100 historic mines. The geological setting is a low-sulphidation epithermal system within the prolific Sierra Madre Gold-Silver Trend.

The company's primary focus has been the Target 1 area (El Refugio-La Soledad), where it established a maiden JORC-compliant MRE in November 2021 totalling 529,000 AuEq ounces at a high grade of 6.81 g/t AuEq. The current strategy is to expand the Target 1 resource and systematically explore and drill multiple other high-priority targets (Targets 2, 3, 5, 6) to demonstrate multi-million-ounce potential across the district.

The company does not own the project outright but holds an exclusive option to purchase a 100% interest for US$10M on or before August 7, 2028.