[Video Enhanced] Dolly Varden Silver CEO Shawn Khunkhun Delivers Year End Address to Shareholders

Executive Summary

• Dolly Varden Silver announced a definitive merger with Contango ORE to create a North‑American mid‑tier silver‑gold producer, targeting near‑term production and long‑term growth.
• The company reported a step‑change in market capitalization (≈ $304 M → $590 M) and raised CAD 63 M in 2025, ending the year with > CAD 60 M cash.
• A 56,131 m drill program delivered multiple high‑grade intercepts (e.g., 1,422 g/t Ag over 21.70 m; 166 g/t Au over 1.30 m) and the combined entity will have ≈ US$812 M market cap with > US$100 M cash on hand.

Key Details

• Merger Highlights
• Transaction creates a diversified silver‑gold company with assets from advanced exploration to operating mines.
• Combined cash on hand > US$100 M; debt ≈ US$15 M.
• Post‑merger market capitalization projected at ~US$812 M (C$1.1 B).
• Shareholder support agreements cover ~22 % of outstanding shares for each company; additional voting support pledged.

• Expected merger close: March 2026; shareholder vote scheduled for February 22, 2026.

• Financial & Capital Position

• Raised CAD 63 M in 2025 (source not specified).
• Year‑end cash balance > CAD 60 M.

• Over US$100 M combined cash after merger; minimal debt.

• Strategic Acquisitions & Land Package

• Prospective land holdings increased > 6× to > 100,000 ha in the southern Golden Triangle.
• Acquired properties: Kinskuch, Theia, Porter, BA, Red Cliff, American Creek.

• Controls > 50 km of Hazelton Formation, including “Red Line” marker.

• Exploration Results (56,131 m drill program)

• Wolf Vein: 1,422 g/t Ag over 21.70 m (incl. 10,700 g/t Ag over 1.00 m).

• Homestake Silver – multiple intercepts:

  • 3.34 g/t Au over 120 m (incl. 166 g/t Au over 1.30 m).
  • 26.74 g/t Au over 14.76 m (incl. 122 g/t Au over 2.85 m).
  • 14.50 g/t Au over 21.18 m (incl. 113 g/t Au & 997 g/t Ag over 0.68 m).

• Key Operating Assets (Contango)

• Manh Choh Mine, Alaska – joint‑venture with Kinross; 173,400 oz Au produced in first 9 months of 2025; AISC US$1,505/oz; US$87 M cash distributions to Contango.
• Lucky Shot Mine, Alaska – indicated resource 0.1 Moz Au @14.5 g/t; 18,000 m drill program underway targeting 400–500 k oz Au resources; DSO feasibility by 2027.

• Johnson Tract, Alaska – indicated 0.7 Moz Ag, 0.6 Moz Au, 400 M lb Zn; NPV5% US$615 M, IRR 53 %; road permit received, DSO study by 2029.

• Kitsault Valley, BC (Dolly Varden)

• Indicated resources: 34.7 Moz Ag, 0.2 Moz Au; inferred 29.3 Moz Ag, 0.8 Moz Au.

• Historical production > 20 Moz Ag from Dolly Varden Mine (1,100 g/t Ag) and Torbit Mine (466 g/t Ag).

• Future Catalysts

• Pending assay results from the 56,131 m drill program.
• 2026 exploration plan targeting resource growth.
• New resource estimate expected H1 2026.
• Ongoing M&A due diligence for accretive opportunities.

Notable Quotes

• “The Dolly Varden merger makes sense for them because it takes their five‑year plan and turns it into a 20‑year plan.” – Shawn Khunkhun, President & CEO, Dolly Varden Silver (Jay Martin Show).
• “Contango has a solid five‑year plan. They've got operations, a great balance sheet, and a good pipeline.” – Shawn Khunkhun, on the strategic fit of the merger.