Silver Hammer Enters into Option Agreement to Acquire 100% Interest in a Strategic and Prospective Silver Project in the Silver Valley of Idaho

Executive Summary

• Silver Hammer Mining Corp. entered into an option agreement to acquire 100% of the Fahey Group Property in Idaho’s Coeur d’Alene silver district.
• The company will pay US$50,000 cash and issue up to C$450,000 of its common shares (priced at the 20‑day VWAP) over a ten‑year schedule, plus meet minimum exploration spend commitments of C$1.5 million.
• Upon exercise, Fahey will receive a 2.0% net smelter return royalty (potentially reduced to 1.5%) and a US$1.5 million milestone payment after commercial production begins.

Key Details

• Property Overview
• 360‑acre land package comprising 18 unpatented US lode claims in the “Silver Belt” of the Coeur d’Alene Mining District.
• Historically surrounded by major silver producers (Galena Mine, Sunshine Mine, etc.) with >1 billion ounces produced in the district.

• More than 20 veins identified on‑property – more than adjacent Bunker Hill and Sunshine mines.

• Option Agreement Consideration

• Cash: US$25,000 within 3 business days of effective date; additional US$25,000 by 30 Jun 2026.

• Share issuances (C$450,000 total) on a staggered schedule:

  • C$50,000 by 31 Dec 2026
  • C$75,000 by 31 Dec 2027
  • C$75,000 by 31 Dec 2028
  • C$125,000 by 31 Dec 2029
  • C$125,000 by 31 Dec 2030

• Share Pricing Mechanism

• Shares priced at the volume‑weighted average price (VWAP) of Silver Hammer’s CSE shares over the 20 trading days preceding issuance.

• If VWAP < C$0.05 or otherwise insufficient to meet dollar amount, cash shortfall will be paid in US$ within 60 days.

• Exploration Expenditure Commitment

• Minimum total spend: C$1,500,000 by 31 Dec 2030.
• At least C$200,000 must be spent by 31 Dec 2027; remaining C$1,300,000 by 31 Dec 2030.

• Excess early‑stage expenditures may be credited toward later commitments.

• Extension & Acceleration Rights

• Company may extend final share payment and exploration deadline by one year for an additional issuance of C$50,000 in shares.

• Company may accelerate cash payments, share issuances, or exploration spend at its discretion without penalty.

• Royalty & Milestone Payments

• Upon exercise, Fahey receives a 2.0% net smelter return royalty on the property; can be reduced to 1.5% upon payment of US$1,000,000 to Fahey.

• After commercial production commences, Silver Hammer will pay Fahey a US$1,500,000 milestone (cash, shares, or combination) within 30 days.

• Regulatory & Closing Conditions

• Transaction subject to corporate and regulatory approvals, including CSE approval.
• No changes to board/management; no finder's fees.
• All issued securities will be under a four‑month statutory hold period.

Notable Quotes

“It is not often a junior is able to have the opportunity to acquire such an exciting silver project that has remained relatively underexplored and more notably surrounded by close to one billion ounces of silver… Our technical team looks forward to bringing modern exploration to such an interesting and highly prospective silver project.” – Peter A. Ball, President & CEO

All non‑material boilerplate, safe‑harbor statements, and disclaimer text have been omitted for clarity.