Grafton Resources Announces LOI to Acquire Silver One Project in Chile

Executive Summary

• Grafton Resources entered a non‑binding LOI to acquire 100 % of the Silver One project in Chile for total deemed consideration of C$820,000 (C$100k cash + 800,000 common shares at $0.90 each).
• Historic waste‑dump sampling returned exceptionally high grades – average 296 g/t Ag and 2.6 % Cu on vein material, indicating a potentially high‑grade silver‑copper target.
• The company announced a ticker change to “GFTFF” on the OTCQB effective Jan 20 2026 and plans to commence drilling in the second half of 2026.

Key Details

• Transaction Terms – C$100,000 cash payable at closing; issuance of 800,000 common shares (deemed price $0.90 per share) subject to escrow and a 36‑month release schedule.
• Project Location – Silver One sits on the San Lorenzo 1‑18 concession in the historic Pedernal district, Petorca Municipality, central Chile; accessed via established gravel roads from Chincolco and Pedernales.
• Historic Waste‑Dump Results – 13.85 kg of vein material assayed at an average 296 g/t Ag and 2.6 % Cu; bulk waste dump (~8,120 t) averaged 96 g/t Ag and 0.80 % Cu (based on a bulk density of 1.43 g/cm³).
• Geological Context – Epithermal low‑sulphidation vein systems hosted in Cretaceous volcanic‑andesitic sequences; underground mapping identified mineralised veins within grey volcanic breccias with reducing characteristics.
• Exploration Plan – Secure safe access to historic stopes, conduct IP/resistivity geophysical surveys, and execute focused drilling to test continuity, thickness, and grade of interpreted vein zones (drilling slated for H2 2026).
• Technical Advisor Comments – Merlin Marr‑Johnson highlighted the “almost 300 g/t Ag” in waste material as highly encouraging, suggesting primary material could be even higher grade.
• CEO/Chairman Comment – Campbell Smyth emphasized Silver One’s potential to become a “next high‑grade Ag‑Cu deposit” and noted logistical synergies with the recently signed Alicahue Copper project.
• Ticker Symbol Change – Effective Jan 20 2026, Grafton’s OTCQB ticker changes from PMSXF to GFTFF, aligning with its CSE symbol “GFT.”
• Qualified Person – Gilberto Schubert, QP (NI 43‑101), reviewed and approved all technical information and assay data.

Notable Quotes

“Silver One offers the opportunity to explore a high‑grade silver‑copper target that is uniquely well suited for development… we plan to drill Silver One in the second half of 2026.” – Campbell Smyth, CEO & Chairman

“Silver grades of almost 300 g/t in the waste material are highly encouraging. The hope is that the primary material is even higher grade.” – Merlin Marr‑Johnson, Technical Advisor