Drilling Starts at Bitterroot Resources' Nighthawk Gold/Silver Project, Nevada

Bitterroot Resources Ltd. announced on November 13, 2025, that its drilling contractor has commenced a 10-hole, 3,000-4,000 metre reverse circulation (RC) drilling program at its 100%-owned Nighthawk Gold/Silver Project in Nevada, USA. The program targets untested Miocene-age structures and potential intrusions. Drilling is expected to continue until late December 2025, with results anticipated in Q1 2026.

This news is a positive, but routine, development for Bitterroot Resources. The initiation of the drilling program at the Nighthawk Gold/Silver Project is the direct result of the private placement financing announced on July 19, 2025, and subsequently closed on August 26, 2025. The private placement was specifically arranged to fund this drilling program and for general working capital. Therefore, the start of drilling is an expected execution of the company's stated plans rather than an unexpected, materially positive event.

From a critical equity analyst perspective, while progress is always welcomed, this news merely confirms that the company is proceeding with its previously announced exploration activities. It does not introduce new information about the potential of the Nighthawk project or significantly alter the company's financial standing beyond the funds already secured. The market would have largely priced in the commencement of this drilling program following the successful close of the private placement. The true material impact will come with the actual drilling results, expected in Q1 2026.

The company's financial position, as per the July 31, 2025, interim financial statements (released September 23, 2025), showed very low cash ($28,627) and negative working capital before the proceeds from the August 26, 2025, private placement were fully reflected. The approximately $1 million raised from the private placement was critical to fund this drilling program and address immediate working capital needs. The commencement of drilling indicates these funds are now being deployed as intended.

The Perseverance Metals Inc. investment, which constitutes a significant portion of Bitterroot's non-current assets, has continued to be problematic. The July 31, 2025, financials confirmed an unrealized loss of $553,340 for the nine-month period and an amendment to the option agreement that removed Perseverance's requirement to go public and extended the exploration expenditure deadline. This indicates a downgrade in the expected value and liquidity of this investment and highlights a key risk. Moreover, Bitterroot's Perseverance shares are pledged as security for related party loans, which are substantial and increasing.

Therefore, while the drilling start is a necessary step and positive for operational momentum, it's a routine event in the context of the company's overall strategy and financial situation, not a game-changer.

Bitterroot Resources Ltd. is a Canadian exploration company listed on the TSX Venture Exchange. The company is primarily focused on the exploration and development of mineral properties.

Flagship Project: * Nighthawk Gold/Silver Project: This is a 100%-owned project located near Tonopah in Nevada, USA. It is currently in the exploration stage. The recent news indicates the start of a 10-hole, 3,000-4,000 metre reverse circulation drilling program targeting untested Miocene-age structures and potential intrusions. The project is considered a key focus of the company's exploration efforts, with recent financing specifically raised to fund its maiden drilling program.

Other Properties/Interests: Bitterroot also holds various royalty interests and options on other mineral properties, primarily in Michigan, USA, through its subsidiary Trans Superior Resources, Inc. These include: * A 2% net smelter returns (NSR) royalty on the Voyageur Lands (approximately 250 square miles) held by Altius Minerals Corporation, and the right to repurchase a 1% NSR on the Copper Range Lands. * An option to reduce a 3% NSR to 2% on the LM Property by paying US$1,000,000 prior to December 31, 2064. * A minerals lease and purchase option with MPC, where MPC retains a 2% NSR for underground mining and 3% NSR for open-pit mining, with options for Bitterroot to purchase 1% of each NSR for US$1,000,000 each.

Investment in Perseverance Metals Inc.: The company holds an investment in Perseverance Metals Inc., which is classified as fair value through profit or loss (FVTPL). As of July 31, 2025, Bitterroot owns 1,689,334 shares of Perseverance Metals Inc. This investment has seen a significant unrealized loss ($553,340 for the nine months ended July 31, 2025). Importantly, an amendment to the option agreement removed the requirement for Perseverance to go public and extended its exploration expenditure deadline, indicating a lack of progress towards liquidity for this investment. These shares are also pledged as security for related party loans.