Shine outlines Red Cloud Silver acquisition terms

Executive Summary

• Shine Minerals Corp. provides an update on its binding letter of intent to acquire 100% of Red Cloud Silver Ltd. (RCS) and its option on the Silver District project in Arizona.
• The transaction is classified as a fundamental acquisition under TSX-V Policy 5.3, rather than a reverse takeover.
• The Silver District is a historically productive silver-dominant district with significant exploration upside for silver, fluorspar, and barite.

Key Details

• Transaction Structure: Binding letter of intent dated Dec. 10, 2025, to acquire 100% of Red Cloud Silver Ltd. and its option on the Silver District project.
• Regulatory Classification: The transaction is expected to be treated as a fundamental acquisition under TSX-V Policy 5.3, not a reverse takeover or change of business under Policy 5.2.
• Historical Production: The Silver District has a recorded production of 1.56 million ounces (44,225 kg) of silver and 2.33 million lb (1.06 million kg) of lead, primarily from 1883 to 1893.
• Project Location: Arizona's La Paz County, described as one of the most mining-friendly jurisdictions in the United States.
• Mineralization: The project hosts a large, multitarget system with demonstrated silver, fluorspar, and barite mineralization. These are identified as United States critical minerals.
• Drill Data: The project includes 468 tightly spaced historical drill holes defining 10 key zones of high-grade silver oxide (and fluorspar-barite) mineralization.
• Depth and Geometry: Mineralization starts from surface and extends to an average depth of only 30 meters. Veins range from 7.5 meters to 45 meters in width.
• Geographic Scope: Silver-enriched carbonate veins cover a 3.5-by-6.5-kilometer area, including West (4.5 km strike), Central (3.5 km strike), and East (4.5 km strike) vein-fault zones.
• Exploration Potential: Shine Minerals identifies excellent potential for expansion down dip, along strike, and down plunge. There is potential for oxide mineralization at surface to transition to dominantly sulphide mineralization at depth.
• Historical Context: Discovered in 1862; most production came from underground Red Cloud and Clip mines. The area remains a source of specimen wulfenite and vanadinite.

Notable Quotes

• "The Silver District project represents a rare opportunity to consolidate a historically productive silver-dominant district in one of the most mining-friendly jurisdictions in the United States... We believe the property offers exceptional discovery upside, supported by modern exploration, strong geology and a clear pathway to 100-per-cent ownership. This is exactly the kind of high-impact asset that can reposition Shine and drive meaningful value creation for our shareholders." — Dev Randhawa, CEO
• "The Silver District project includes 468, tightly spaced drill holes defining 10 key zones of high-grade silver oxide (and fluorspar-barite) mineralization starting from surface and extending to an average depth of only 30 metres... The Silver District project has excellent potential for expansion down dip, along strike and down plunge of established mineralized zones." — Devinder Randhawa, CEO