Mithril Silver drilling target 3 at Copalquin

Executive Summary

• Mithril Silver and Gold Ltd. has commenced its maiden drill program at Target 3 within the Copalquin gold-silver district in Durango, Mexico.
• The company plans to drill approximately 3,300 metres at Target 3 as part of a broader 25,000-metre drilling program for the district in the first half of 2026.
• Recent channel sampling at the El Jabali historic workings within Target 3 returned high-grade results, supporting the decision to test continuity and scale of mineralization in this area.

Key Details

• Drilling Activity: Maiden drill program commenced at Target 3; approximately 3,300 metres planned for this specific target.
• Total Program Scope: 25,000 metres of drilling planned for the Copalquin district in the first half of 2026.
• Target 3 Context: Located on the eastern side of the district with significant historical mining activity.
• Recent Sampling Results (El Jabali Historic Workings):
  • Up to 0.65 metres at 16 grams per tonne (g/t) gold.
  • Up to 1,275 grams per tonne (g/t) silver.
• Other Targets:
  • Target 5 and Target 1 drilling are progressing.
  • Target 1 drilling is scheduled for completion during Q1 2026, prior to updating the maiden mineral resource estimate (MRE).
• Upcoming Activities:
  • Drone magnetic survey over Copalquin and La Dura mining concession areas to commence this month.
  • Further assays from 2025 expected in the coming weeks.
• Historical Resource Data (Target 1 Maiden Resource):
  • Indicated: 691,000 tonnes at 5.43 g/t gold and 114 g/t silver for 121,000 ounces gold plus 2,538,000 ounces silver.
  • Inferred: 1,725,000 tonnes at 4.55 g/t gold and 152 g/t silver for 252,000 ounces gold plus 8,414,000 ounces silver.
  • Cut-off Grade: 2.0 g/t gold equivalent (AuEq).
  • Classification: 28.6% of resource tonnage classified as indicated.
• Project Status: Mining study and metallurgical testwork support conventional underground mining for the El Refugio-La Soledad resource.
• Concession Terms: Company has an exclusive option to purchase a 100% interest in Copalquin mining concessions by paying $10 million (U.S.) on or before August 7, 2028.

Notable Quotes

• "We are very pleased to have commenced drilling at target 3 following the Christmas break, marking another important milestone as we continue to advance multiple high-priority areas across the Copalquin district," said John Skeet, managing director and chief executive officer.
• "Target 3 represents a large and highly prospective area on the eastern side of the district, underpinned by extensive historic mine workings."
• "Our programs are designed to test both continuity and scale of mineralization at our targets and are important steps in our strategy to unlock the broader district-scale potential of the Copalquin epithermal system as we advance several targets in parallel."