Thunder Mountain Gold Closes US$2.5 Million Private Placement

The most recent news, dated October 27, 2025, announces that Thunder Mountain Gold, Inc. has successfully closed a US$2.5 million private placement. This financing involved the issuance of 10,000,000 units at a price of US$0.25 per unit. Each unit consists of one common share and one-half common share purchase warrant, with each whole warrant exercisable at US$0.40 for a period of 24 months. The securities issued are subject to a statutory four-month hold period expiring February 24, 2026. The gross proceeds will be used to advance technical work at the South Mountain Project, including drilling, metallurgy, resource and mine planning studies, and for general working capital.

This closing follows earlier announcements on October 2 and October 3, 2025, where the company initially announced and then clarified the details of this private placement.

The successful closing of the US$2.5 million private placement is a material positive development for Thunder Mountain Gold. Coming shortly after the announcement of a small-scale production agreement for the South Mountain project in September 2025, this financing provides essential capital to fund critical technical advancements and exploration activities.

Positive Impacts: - Secured Funding: The US$2.5 million provides a much-needed capital injection for ongoing operations and significant project milestones, including advancing the South Mountain technical work (drilling, metallurgy, resource, and mine planning studies), which are crucial steps towards de-risking and potentially developing the project. - Operational Continuity: Given the company's historical cash burn and negative working capital at times, this financing extends its operational runway, allowing management to execute planned exploration and development programs without immediate liquidity concerns. - Confidence Endorsement: The successful raise, especially at US$0.25 per unit (CAD$0.35 equivalent), indicates continued investor confidence in the South Mountain Project's potential. Notably, this financing price is significantly below the stock's recent trading prices (e.g., $0.75 CAD close on Oct 24), suggesting strong market demand beyond the private placement participants. - Strategic Alignment: The use of proceeds directly supports the advancement of the flagship South Mountain Project, aligning with the company's stated strategic objectives to move the resource towards production and expand its exploration footprint, as highlighted by recent executive appointments and renewed exploration efforts.

Considerations/Risks: - Dilution: The issuance of 10,000,000 common shares represents further dilution for existing shareholders. Including shares from previous financings, the total number of shares outstanding continues to increase. - Warrant Overhang: An additional 5,000,000 warrants issued at US$0.40 (CAD$0.55) could lead to further dilution if exercised. However, if these warrants are in the money and exercised, they provide additional non-dilutive capital to the company. The exercise price of CAD$0.55 is currently below the market price, making future exercise likely if the price holds. - Dependence on Financings: Despite securing this capital, the company's operational burn rate means it will likely continue to depend on further financings or substantial cash flow from the small-scale production in the future. - Unaddressed Lease Expiry: The March 31, 2025 financial statements noted that the Lowry Lease, covering 376 acres at the South Mountain Project, was set to expire on October 24, 2025. There has been no subsequent news release clarifying its renewal or impact. The expiration of a significant land package without communication could be a hidden negative.

Overall, the financing is a necessary and positive step, allowing Thunder Mountain Gold to continue advancing its South Mountain Project, especially given the recent small-scale production agreement that provides an exciting new non-dilutive funding path. The strong current market price relative to the financing price suggests the market views these developments positively.

Thunder Mountain Gold, Inc. (THM) is a junior exploration company, founded in 1935, focused on base and precious metals projects in the Western U.S. Its principal asset and flagship project is the South Mountain Project, a polymetallic (zinc, silver, gold, copper, lead) development project located approximately 70 miles southwest of Boise, Idaho, on private land.

The South Mountain project has a history of high-grade production by Anaconda Mining in the mid-20th century, with historical grades including 14.5% zinc, 10.6 oz/t silver, 0.058 oz/t gold, and 1.4% copper. Thunder Mountain Gold has invested approximately US$25 million since 2007 to rehabilitate over 4,000 feet of underground workings and conduct extensive exploration, resulting in SK-1300 and NI 43-101 compliant resource estimates. The company is actively pursuing an updated Mineral Resource Estimate (MRE) and a Preliminary Economic Assessment (PEA).

Recent developments at South Mountain include: - Appointment of an experienced technical team and new COO/VP of Operations to drive project advancement. - Commencement of Phase I fieldwork and Phase II field exploration (geological mapping, sampling, advanced geophysical surveys like MT and IP) targeting deeper porphyry systems and expanding known CRD/skarn mineralization. - A small-scale production agreement with MFD Investment Holdings SA to finance and operate a small-scale mining operation, providing a non-dilutive revenue stream. Thunder Mountain Gold retains operator control, and MFD can earn a 10% interest for US$1 million expenditure by October 31, 2026. - The company holds an option to purchase the South Mountain mineral interest for a capped $5 million (less net returns royalties) from its majority-owned subsidiary Owyhee Gold Trust (OGT), which expires in November 2026.

Thunder Mountain Gold also holds the Trout Creek project, a gold exploration project in Nevada adjacent to Nevada Gold Mines (a Barrick and Newmont Gold Inc. joint venture).