Prismo closes property assignment with Blade Resources

Executive Summary

• Prismo Metals Inc. has closed a strategic transaction assigning all rights to its Hot Breccia copper project in Arizona to Blade Resources Inc. in exchange for 6,755,000 common shares of Blade and $185,000 in cash.
• Following the transaction, Prismo holds approximately 24% of Blade’s issued and outstanding shares, making it Blade's largest single shareholder, and retains the right to nominate one board representative.
• Concurrently, Prismo provided an update on its Silver King project, confirming the successful completion of the first drill hole (SK-26-01) which intersected visible silver minerals and sulphides, with a Phase 1 program of 1,000 meters of drilling planned.

Key Details

• Transaction Structure: Prismo assigned all rights, interests, and obligations in the Hot Breccia copper project to Blade Resources.
• Consideration: Prismo received 6,755,000 common shares of Blade and a cash payment of $185,000.
• Shareholding: Prismo now owns approximately 24% of Blade’s issued and outstanding shares, becoming the largest single shareholder.
• Strategic Rationale:
  • Prismo leverages its Hot Breccia investment into a significant stake in Blade.
  • Provides access to capital for Hot Breccia drilling through Blade without direct dilution to Prismo shareholders.
  • Allows Prismo to focus on remaining projects (Silver King and Ripsey gold) while Blade focuses on Hot Breccia.
• Prismo Rights:
  • Right to nominate one representative to Blade’s board of directors.
  • Participation rights in future equity offerings to maintain undiluted ownership percentage.
• Early Warning Disclosure: Prismo acquired the Blade shares for a total consideration of $2,364,250 for investment purposes with a view to Blade's potential listing on a Canadian stock exchange.
• Silver King Drilling Update (SK-26-01):
  • Vertical hole reached total depth of 477 feet (145 metres).
  • Intersected two small voids likely representing underground workings near the 114-foot level.
  • Quartz veining extended ~100 feet downhole from this level.
  • Visible sulphide minerals present; silver minerals confirmed via visual identification and hand-held XRF.
  • Identified minerals include Freibergite (Ag-bearing tetrahedrite), stromeyerite (AgCuS), and probably acanthite (AgS).
• Silver King Phase 1 Plan:
  • 1,000 metres of diamond drilling planned to test the upper portion of the steeply plunging, pipe-like mineralized body.
  • Program is fully financed.
  • Estimated at nine holes.
  • Second phase to test deeper levels and areas adjacent to historic mine.
• Geological Context: Silver King features epithermal-mesothermal silver-dominant veins in porphyry, contrasting with the nearby Magma mine’s mesothermal copper-focused veins. Vertical zoning suggests Silver King's shallower silver system may transition into deeper copper styles similar to Magma/Resolution.

Notable Quotes

• Alain Lambert, CEO: "In our opinion, Hot Breccia is one of the most compelling copper exploration opportunities in North America. We remain committed to advancing it toward drilling. The principals and financial backers of Blade have a long history and strong track record in raising significant capital for exploration programs of the scale required at Hot Breccia. We expect this will result in Hot Breccia being drilled this year."
• Dr. Craig Gibson, CEO: "The first drill hole at Silver King, SK-26-01, was drilled vertically, and was successful in traversing the mineralized body as projected from the historic workings and reached a total depth of 477 feet (145 metres)... Visible sulphide minerals are present in several intervals and the presence of silver minerals, including native silver, was confirmed through visual identification and with a hand-held XRF analyzer."