Silver Wolf Exploration completes Ana Maria acquisition

Executive Summary

• Silver Wolf Exploration Ltd. has completed the acquisition of a 100% interest in the Ana Maria and El Laberinto properties in Mexico from Avino Silver & Gold Mines Ltd., fulfilling all expenditure and option payment requirements under the August 2020 option agreement.
• The transaction involved the issuance of 2 million common shares to Avino at a deemed price of 20 cents per share (valued at $400,000), bringing the total share consideration to $600,000 (3,181,718 shares), alongside over $750,000 in exploration expenditures.
• Concurrently, Avino updated its early warning disclosure to reflect its increased stake in Silver Wolf, holding approximately 18.19% of issued shares (non-diluted) and 21.85% (partially diluted), following a prior private placement and this acquisition.

Key Details

• Transaction Completion: Silver Wolf acquired 100% interest in the Ana Maria and El Laberinto properties in Mexico.
• Consideration Structure:
  • Share Issuance: Issued 2 million common shares to Avino at a deemed price of 20 cents per share for an aggregate value of $400,000.
  • Total Share Value: Cumulative share issuance to Avino totals $600,000, satisfied by 3,181,718 common shares at 20 cents each.
  • Expenditures: Incurred over $750,000 in exploration expenditures on the properties.
• Project Details:
  • Location: 21 km northwest of Gomez Palacio and Torreon, Mexico.
  • Size: 2,549 hectares.
  • Geology: Located in a prolific area for carbonate replacement deposits (CRDs).
• Strategic Updates:
  • AI Partnership: Partnered with Vrify to deploy AI exploration intelligence software for prospectivity mapping and targeting.
  • Drill Program: The AI software will optimize an upcoming 3,000-metre, 13-hole drill program.
  • Funding: The drill program is fully funded by a recently completed upsized private placement.
• Avino Ownership & Early Warning Disclosure:
  • Pre-Transaction (Non-diluted): Avino held 9,307,052 shares (~15.47%) and 2,916,677 warrants.
  • Post-Transaction (Non-diluted): Avino holds 11,307,052 shares (~18.19%) and 2,916,677 warrants.
  • Post-Transaction (Partially Diluted): Assuming full warrant exercise, Avino controls ~21.85% of outstanding shares.
  • Warrant Limitation: Warrants are subject to a contractual limitation preventing exercise if it results in ownership exceeding 19.99% of issued shares.
  • Private Placement Context: Avino previously acquired 5 million units at 15 cents/unit ($750,000) in a private placement announced Nov 25, 2025, bringing its total holdings prior to this acquisition to 9,307,052 shares.

Notable Quotes

• "Reaching this milestone ahead of schedule demonstrates our full commitment to advancing the Ana Maria project," said Peter Latta, president of Silver Wolf Exploration. "Full ownership of the project, combined with the recently completed and upsized private placement to fully fund the upcoming drill program, positions Silver Wolf and its shareholders for an exciting 2026."