Mithril Reports High-Grade Drilling Extending Copalquin Resource by 30%

District-Scale Discovery Advances

Mithril Silver and Gold Limited has delivered another quarter of significant exploration progress at its flagship Copalquin gold-silver project in Durango State, Mexico. The December 2025 quarterly report confirms Copalquin as a large, vertically extensive epithermal system, with mineralisation traced over an impressive 9-kilometre strike length and 1,200 metres vertical extent. This scale underpins Mithril's confidence in the district’s multi-million-ounce potential.

Drilling at Target 1 – the Refugio-La Soledad area – continues to expand and infill the maiden resource footprint. Recent intercepts include high-grade gold and silver assays such as 8.03 metres at 7.19 g/t gold and 260 g/t silver, extending the strike length by over 30%. Mithril plans a resource update in the second quarter of 2026, following a 3,000-metre drilling campaign designed to refine the geological model and underpin future development.

Emerging Silver-Rich Opportunities

Beyond Target 1, the maiden drilling at Target 5 – the Apomal-Candelaria area – has confirmed a compelling silver-rich epithermal system. High-grade intercepts include 2.75 metres at 660 g/t silver equivalent, with some assays exceeding 1,700 g/t silver equivalent over narrower widths. Surface sampling has returned exceptional grades, including historic workings with up to 4,520 g/t silver and 38.3 g/t gold. These results highlight substantial upside potential, as only a fraction of the mapped veins have been tested to date.

Meanwhile, Target 3 – El Jabali-Guadelupe – has moved to the drilling phase with a maiden program commenced in January 2026. This target is characterised by coherent mineralisation adjacent to rhyolite domes, with channel sampling returning notable grades such as 0.65 metres at 16 g/t gold and 1,275 g/t silver. The systematic approach combining mapping, sampling, and geophysical surveys is strengthening Mithril’s district-scale geological model, identifying key structural corridors and feeder systems responsible for mineralisation.

Strategic Acquisition Expands Portfolio

In a strategic move to consolidate its presence in the region, Mithril executed an agreement in December 2025 to acquire 100% of the La Dura mining concessions, located just 20 kilometres from Copalquin. La Dura hosts a significant gold-silver sheeted vein system with historic underground workings extending to 140 metres depth. The acquisition adds over 2,000 hectares of prospective ground, with initial LiDAR surveys completed and aerial magnetic surveys planned to guide upcoming exploration.

The La Dura property complements Mithril’s Copalquin assets, allowing the company to leverage its local expertise and infrastructure while minimising additional financial outlay. This acquisition underscores Mithril’s commitment to building a district-scale gold-silver portfolio in one of Mexico’s prolific mining regions.

Financial Position and Outlook

Financially, Mithril remains well positioned with a cash balance of A$14.1 million at the end of December 2025 and no debt. Exploration expenditure for the quarter was A$3.88 million, focused entirely on advancing the Copalquin district. The company also continues to process Mexican value-added tax refunds, which are expected to provide additional liquidity in the coming months.

Looking ahead, Mithril plans an aggressive 2026 exploration program with 25,000 metres of drilling scheduled across multiple targets. Key activities include resource expansion at Target 1, further drilling at Target 5, maiden drilling at Target 3, and advancing exploration at Targets 4 and 6. The integration of aerial magnetic survey data will refine drill targeting and support the company’s district-scale exploration thesis.

Managing Director John Skeet emphasised the company’s strong momentum – "With multiple drill programs underway and a robust treasury, Mithril is well positioned to deliver on its exploration milestones and unlock the full potential of the Copalquin district and newly acquired La Dura property in 2026."