Silver Bullet discovers new silver/gold zone at KT

Executive Summary

• Silver Bullet Mines discovered a new high-grade silver/gold vein at its KT Mine in Arizona, with initial in-house assays showing 7 to 27 ounces per ton of silver.
• The company is actively developing the new zone, having identified a vein over 200 feet in length and excavating a roughly 8-foot-wide surface vein. A 200-ton bulk sample has been sent to the company's mill for processing.
• Underground mining at the KT main zone is set to commence, with five shipments of concentrate already completed or scheduled, and payment for the first shipment pending independent assay results.

Key Details

• New Discovery: A new potential high-grade silver/gold zone was discovered during development at the KT Mine in Arizona. It is currently undetermined if this is an offshoot of the main KT vein or a parallel new vein.
• Assay Results: Twelve samples from the new zone yielded significant high-grade silver, with gold and lead. In-house assay results range from 7 to 27 ounces per ton silver. Check assays are pending third-party confirmation.
• Geological Characteristics: The new zone differs from the main KT vein, which typically yields high-grade gold with silver; the new zone indicates high-grade silver with gold.
• Exploration Progress: The geological team has identified the vein over a distance of 200 feet. A roughly 8-foot-wide vein was uncovered at surface. Excavation is continuing to expose further mineralization along strike.
• Bulk Sampling: A roughly 200-ton bulk sample was removed for processing at the company's mill/assay facility near the KT mine. Results are ongoing. The material will be processed into concentrate and sold to the existing buyer.
• KT Main Zone Operations:
  • Underground development is completed; mining is anticipated to commence this week.
  • Head grade of underground material is expected to increase significantly.
  • Four shipments of concentrate have occurred to date, with a fifth shipment scheduled for pickup.
  • First shipment received by buyer on Oct. 29, 2025.
  • Buyer sent samples to two independent labs for assay on Dec. 16, 2025. Results expected imminently.
  • Payment for the first shipment is anticipated immediately upon receipt of comparison results, assuming no major discrepancies.
• Warrant Exercises:
  • 1,923,334 warrants exercised at a strike price of 17 cents (previously issued in connection with a private placement).
  • 625,000 warrants exercised at a strike price of 16 cents (previously issued in connection with convertible debentures).
  • Cumulative exercise in Q1 and Q2 of fiscal 2026 includes 4,684,167 warrants at 16 cents and 1,923,334 warrants at 17 cents.
  • Proceeds provide additional working capital.
• Washington Mine: The company is evaluating results from its fall development program at the Washington mine in Idaho and will provide an update soon.
• QA/QC: Samples analyzed at in-house facility near Globe, Ariz. Process involved crushing, pulverizing, melting in a crucible at 1,850°F, and dissolving gold in a bead using nitric acid. Reviewed by Robert G. Komarechka, PGeo.

Notable Quotes

• "Silver Bullet's business plan is built upon a hub and spoke model, with the mill being the hub. Owning its own processing complex enables Silver Bullet to quickly evaluate and advance opportunities as new targets are identified."
• "The company can then make fast accurate decisions based on clear facts and numbers. This puts Silver Bullet is in an excellent position to fill the growing need for silver/gold."