Medaro Signs LOI to Acquire up to 100% Interest in the past Producing Sala Silver-Zinc Project, Sweden

Medaro Mining Corp. entered a non-binding Letter of Intent (LOI) to acquire up to a 100% interest in the past-producing Sala Zinc-Silver Project in Sweden from Alicanto Minerals Ltd. The project contains an Inferred Mineral Resource of 9.7 million tonnes grading 214 g/t silver-equivalent (zinc, silver, lead). The earn‑in requires total cash payments of CDN$800,000, issuance of 800,000 common shares, and CDN$1.75 million in exploration expenditures over three years to reach 90% ownership. Medaro can acquire the remaining 10% for an additional CDN$500,000 cash and 400,000 shares. A 1.0% net smelter return (NSR) royalty (increasing to 2.0% upon 100% ownership) will be retained by Alicanto. A definitive agreement is targeted by end of May 2026.

The Sala acquisition is a material step‑up for Medaro. It adds a defined, past‑producing resource (∼67 Moz AgEq) that is far more advanced than the company’s earlier‑stage exploration permits (Bastnäs, Backegruvan, Clay Howells). The scale of the resource and the historical production record differentiate this from the string of routine Swedish staking and small property purchases. However, the earn‑in terms are substantial relative to Medaro’s recent financing capacity (the last placement raised only $976k). The company will almost certainly need additional dilutive equity raises to meet the CDN$1.75 million exploration commitment and cash payments. The non‑binding nature of the LOI introduces closing risk. On balance, the news is genuinely new, market‑moving information that can re‑rate the stock if the deal progresses, but execution and funding risks are high. The market’s reaction on May 13 is not captured in the provided data, but the preceding close at $0.51 suggests some anticipation or a small rally.

Medaro Mining Corp. is a Canadian junior exploration company that has pivoted aggressively into Sweden’s Bergslagen mining district. It holds: - Sala Zinc-Silver Project (pending LOI) – past‑producer with a 9.7 Mt @ 214 g/t AgEq inferred resource; this now becomes the flagship asset. - Backegruvan nr 1 – iron‑oxide copper‑gold/REE property (acquired April 2026). - Bastnäs project – two exploration permits (∼1,130 ha) targeting REE, copper, cobalt, gold, and base metals; exploration program underway since March 2026. - Clay Howells West – Ontario REE project, Phase 1 exploration beginning May 2026. - Legacy lithium properties (Pontax, Cyr South) in Quebec, which have received little recent attention.