Shine Provides Update on Acquisition of Red Cloud Silver

Executive Summary

• Shine Minerals entered into a binding LOI to acquire 100 % of Red Cloud Silver Ltd. (RCS) and RCS’s option on the historic Silver District Project in Arizona, adding a large, multi‑target silver‑fluorspar‑barite land package to its portfolio.
• The transaction is expected to be treated as a fundamental acquisition under TSX Venture Exchange Policy 5.3 rather than a reverse takeover, and will be disclosed further when a definitive agreement is executed.
• The Silver District Project comprises 468 shallow historical drill holes across three vein‑fault zones (West, Central, East) with near‑surface high‑grade silver oxide mineralization and significant fluorspar and barite occurrences, offering substantial upside for deeper exploration.

Key Details

• Transaction Structure: Binding Letter of Intent dated December 10 2025; aims to acquire 100 % of RCS and its option on the Silver District Project.
• Asset Description:
• Historical production: 1.56 Moz (44,225 kg) silver and 2.33 M lb (1.06 M kg) lead (produced mainly 1883‑1893).
• Land package spans a district‑scale area in La Paz County, Arizona, with three main vein‑fault zones covering ~3.5 × 6.5 km.
• 468 historical drill holes (average depth ≈30 m) defining 10 key high‑grade silver oxide zones; mineralized veins 7.5–45 m wide, tested to average depth of 35 m.
• Exploration Potential: Near‑surface oxide mineralization expected to transition to deeper sulphide mineralization; significant upside for down‑dip, along‑strike and down‑plunge extensions.
• Regulatory Treatment: Company clarifies the deal will not be a reverse takeover under TSXV Policy 5.2 but a fundamental acquisition per TSXV Policy 5.3; further disclosures to follow upon execution of definitive agreement.
• Management Commentary: CEO Dev Randhawa emphasizes the strategic fit, high‑grade nature of the asset, and its potential to reposition Shine Minerals as a Tier 2 issuer with meaningful shareholder value creation.

Notable Quotes

“The Silver District Project represents a rare opportunity to consolidate a historically productive silver‑dominant district in one of the most mining‑friendly jurisdictions in the United States… This is exactly the kind of high‑impact asset that can reposition Shine and drive meaningful value creation for our shareholders.” – Dev Randhawa, CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the release.