Pinnacle Arranges Non-Brokered Private Placement

On November 25, 2025, Pinnacle Silver and Gold Corp. announced its intention to conduct a non-brokered private placement to raise gross proceeds of up to C$2,520,000. The company plans to issue up to 18,000,000 units at a price of C$0.14 per unit. Each unit will consist of one common share and one full common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at an exercise price of C$0.20 for a period of 24 months.

The proceeds from the financing are designated for advancing the El Potrero gold-silver project, funding other project evaluations, and for general working capital purposes. The company noted that insiders are expected to participate in the placement.

The announcement of a C$2.52 million financing is a routine but necessary and positive development for an exploration-stage company like Pinnacle.

• Context and Timing: The financing follows a series of positive exploration updates throughout 2025, including high-grade surface and underground sampling results, encouraging preliminary metallurgy, and the initiation of a LiDAR survey to refine drill targets. With a successful target generation phase largely complete, the next logical and critical step is a maiden drill program. This financing provides the required capital to execute that program.
• Terms of the Deal: The C$0.14 issue price is aligned with the stock's closing price on the previous day, indicating no discount was required to attract capital, which is a neutral to slightly positive signal. The inclusion of a full warrant is dilutive, which is a negative for existing shareholders. However, the warrant's exercise price of C$0.20 represents a 43% premium to the financing price, which is a reasonable hurdle. If exercised, these warrants would provide an additional C$3.6 million in funding.
• Use of Proceeds: The stated use of proceeds—to advance the flagship El Potrero project—is exactly what investors should expect and want. It demonstrates management's focus on creating value at its key asset.
• Dilution vs. Progress: While the issuance of 18 million shares and 18 million warrants is dilutive, it is a necessary trade-off for an exploration company that does not generate revenue. Without this capital, exploration would cease, and the value generated by the positive results year-to-date could not be advanced. The participation of insiders, as stated in the release, would signal strong internal confidence in the project's prospects.

Compared to previous news, this financing is the logical culmination of the successful fieldwork conducted since the project was acquired in February 2025. The company has methodically de-risked the project through sampling and metallurgical work, and now it is funding the definitive test: drilling. The news is in line with a well-executed exploration strategy. Therefore, the impact is assessed as Routine - Positive. It is not game-changing, but it enables the next, potentially game-changing, phase of work.

Pinnacle Silver and Gold Corp. is a Canadian-based junior exploration company. Its flagship asset is the El Potrero gold-silver project, located in the prolific Sierra Madre Occidental in Durango, Mexico. Pinnacle has a staged option agreement to acquire up to a 100% interest in the project, which is subject to a 2% Net Smelter Return (NSR) royalty.

El Potrero is a past-producing, high-grade, low-sulphidation epithermal vein system that saw small-scale production in the late 1980s. The property hosts three historic mines and a previously operational 100 tpd plant. The company's strategy is to rapidly advance the project by confirming and expanding the known high-grade mineralization through modern exploration, with the goal of refurbishing the existing plant for near-term, low-cost production. Since acquiring the option in February 2025, the company has successfully extended the known vein system and reported numerous high-grade gold and silver assays from surface and underground channel sampling.