Drilling at Dome Continues to Confirm Large-Scale, Open-Pit Potential; New, High-Grade Intersections Extend Mineralization 600 Metres to South

Discovery Silver Corp. (DSV) released drilling results on October 20, 2026, titled "Drilling at Dome Continues to Confirm Large-Scale, Open-Pit Potential; New, High-Grade Intersections Extend Mineralization 600 Metres to South." The program comprised 36 holes totaling 16,365.4 meters, with 22 holes (7,188.0 m) located south of the resource pit and 14 holes (9,177.4 m) north of it.

On the south side, which serves as an extension of the deposit, core length intervals (uncut) included: - DOM26-046: 3.41 g/t over 17.3 m and 1.42 g/t over 17.0 m - DOM26-047: 1.71 g/t over 19.1 m, 11.41 g/t over 1.7 m, 1.15 g/t over 12.9 m - DOM26-044: 3.56 g/t over 21.0 m and 2.29 g/t over 4.0 m - DOM26-048: 2,310.00 g/t over 1.0 m, 2.09 g/t over 9.3 m, 6.52 g/t over 4.2 m, 2.01 g/t over 14.0 m - DOM26-071: 195.00 g/t over 0.6 m, 46.20 g/t over 1.0 m, 0.81 g/t over 14.6 m, 1.98 g/t over 18.7 m, 11.31 g/t over 6.7 m (including 214.00 g/t over 0.3 m) - DOM26-042: 6.80 g/t over 5.0 m and 3.75 g/t over 5.0 m - DOM26-049: 56.50 g/t over 1.1 m and 3.93 g/t over 5.0 m - DOM26-061A: 1.48 g/t over 22.0 m and 1.75 g/t over 14.9 m - DOM26-063: 11.63 g/t over 9.0 m (including 93.40 g/t over 1.0 m), 4.44 g/t over 3.0 m, 1.40 g/t over 7.5 m

On the north side, confirming existing mineralization and identifying new shallow structures, core length intervals (uncut) included: - DOM26-019: 331.0 g/t over 0.3 m, 19.56 g/t over 6.1 m (including 279.00 g/t over 0.4 m), 51.60 g/t over 2.0 m (including 102.00 g/t over 1.0 m) - DOM26-052: 72.54 g/t over 5.9 m (including 1,400.00 g/t over 0.3 m), 2.19 g/t over 13.5 m - DOM26-054: 5.28 g/t over 11.0 m (including 83.10 g/t over 0.3 m), 2.42 g/t over 10.9 m - DOM26-051: 17.92 g/t over 3.7 m (including 71.20 g/t over 0.8 m), 5.48 g/t over 7.0 m - DOM26-056: 3.48 g/t over 9.1 m (including 28.20 g/t over 0.8 m), 1.81 g/t over 9.0 m, 3.87 g/t over 7.0 m - DOM26-053: 2.34 g/t over 14.3 m and 51.87 g/t over 1.8 m - DOM26-058: 140.28 g/t over 2.6 m (including 1,170.00 g/t over 0.3 m)

The current Dome mineral resource stands at 222.3 million tonnes at 1.49 g/t for 11.0 million ounces, classified entirely as Inferred within a conceptual large-scale open-pit model. An update to the resource remains on track for release as part of a technical report for the company’s Porcupine operations early in 2027.

All assays reported are uncut, and intervals represent core lengths only; true widths are not known, and no cutoff grade was stated. Eight holes (DOM26-055, 057, 068, 064, 040, 043, 045, 066) were excluded from Table 1 due to "lower grade values," and their specific values were not provided.

Regarding strategy, the CEO stated the company is "re-evaluating our future plans for the Dome Mill" and "considering the establishment of a large, central milling facility at the Kidd Metallurgical site to provide processing for all of our operations." Geologically, the new southern zone follows the projected Dome Fault trace, remaining "open to the west" for a minimum of 1.5 km toward the Paymaster #2/#3 shaft area on ground acquired from McEwen Mining, an announcement made on October 9, 2026.

Discovery Silver Corp. (DSV) released drill results highlighting a southern panel of mineralization located 100-600 meters outside the pit along the Dome Fault. Assays from several holes in this area, situated at shallow depths next to recently acquired ground, returned grades above the 1.49 g/t resource grade. The company also identified new shallow structures north of the main body, representing an unquantified expansion of the addressable footprint.

The results include the following intercepts: * 3.56 g/t over 21.0 m * 3.41 g/t over 17.3 m

These figures are comparable to or better in grade than previous broad Dome intercepts, such as DOM26-050, which reported 9.09 g/t over 17.3 m, and DOM26-005, which reported 278.48 g/t over 1.1 m, both released on 2026-08-05. The current release’s best broad intercepts include 11.63 g/t over 9.0 m, 3.56 g/t over 21.0 m, and 3.41 g/t over 17.3 m.

Discovery Silver is a multi-billion-dollar gold producer with approximately $1.3 billion in annualized revenue and a large asset portfolio including Dome, Hoyle Pond/TVZ, Pamour, Borden, Owl Creek, and Kidd. The company currently provides FY2026 gold guidance of 260-300 koz at an AISC of $1,950-2,250/oz, targeting production exceeding 500 koz/yr. Prior-period context indicates Q2 2026 revenue of $319.1M, net earnings of $52.1M, adjusted net earnings of $92.3M, EBITDA of $170.0M, and free cash flow of -$11.4M. The company holds $364.3M in cash and $607.8M in total liquidity, with no debt and approximately $156.5M implied drawn on a $400M revolver, leaving $243.5M in availability.

The stock has traded between a low of $4.79 and a high of $13.33 on 2026-09-03, driven by the Porcupine integration, the Kidd acquisition, record earnings, and a gold price realized at $4,908/oz in Q1 2026. The equity currently carries a market capitalization of approximately $9.1B, trading at roughly 12.5x book value of $0.90/share and mid-30s trailing P/E on annualized H1 2026 net earnings.

Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF), led by President, CEO and Chairman Tony Makuch, is a precious metals producer with exposure to gold, silver, and base and critical minerals. The company’s Porcupine Complex in Timmins, Ontario, includes the Dome mine, which holds 11.0 moz Inferred resources at 222.3 Mt @ 1.49 g/t and has produced 16.7 moz historically between 1910 and 2017. Other assets in the complex include Hoyle Pond, encompassing the TVZ and S Zone, as well as Pamour, which contains Indicated resources of 64.8 Mt @ 1.30 g/t for 2.70 moz and Inferred resources of 23.3 Mt @ 1.34 g/t for 1.00 moz. Additional targets include Borden, Owl Creek, and regional prospects. A 255,000-285,000 m drill program is currently underway in 2026, utilizing up to 23 rigs.

The company also operates the Kidd Operations in Timmins, which it acquired from Glencore in a transaction that closed on 2026-06-01. This acquisition adds the Kidd Met Site, featuring four circuits with approximately 6,000 tpd currently operating on two, a 1,200 ha tailings facility, 90 MW of power, and rail access. It also includes the Kidd Creek copper-zinc-silver mine, which is expected to produce approximately 10-15 kt of zinc, 5-7 kt of copper, and ~0.4 moz of silver for the remainder of the year through 2026.

In Mexico, Discovery Silver owns 100% of the Cordero silver-lead-zinc development project in Chihuahua. The company received federal MIA and change-of-land-use permits for the project on 2026-10-05.

The company’s growth plan aims to more than double Timmins gold output to over 500,000 oz/yr. This expansion is funded from $364.3M in cash and a $400M revolver with $243.5M available. Prior-period context not disclosed in today's release includes Q2 2026 revenue of $319.1M, net earnings of $52.1M, adjusted net earnings of $92.3M, EBITDA of $170.0M, free cash flow of -$11.4M, and total capex of $86.4M. The company’s 2026 guidance calls for 260-300 koz of gold at cash costs of $1,250-1,400/oz and AISC of $1,950-2,250/oz. With a book value of $0.90/share versus a $11.23 price, the stock trades at roughly 12.5x book based on arithmetic of the provided figures.