Uncertainties Remain Despite Mithril’s Promising Silver-Gold Intercepts at Copalquin

Target 3 Drilling Confirms Extensive High-Grade Mineralisation

Mithril Silver and Gold Limited (ASX:MTH, TSXV: MSG, OTCQB: MTIRF) has announced encouraging results from its 2026 drilling program at the Copalquin silver-gold project in Durango State, Mexico. The recent shallow drilling at Target 3 tested approximately 700 metres of strike within a 1.2 km by 1.2 km area, confirming widespread epithermal-style mineralisation. Highlights include intercepts such as 0.50 metres at 6.91 g/t gold and 475 g/t silver from 102.5 metres (hole JA26-004), and 0.50 metres at 33.2 g/t gold and 5.9 g/t silver from 134.95 metres (hole GU26-002). These results indicate the mineralisation is situated at a relatively high level in the system, with thicker veins and better grades observed at greater depths within the drill holes.

The drilling program at Target 3 comprised 3,039 metres across four historic workings, with vein styles and grades consistent with a district-scale epithermal system extending over 9 kilometres in strike and more than 1,200 metres vertically. The continuity of mineralisation down dip and along strike remains open, underscoring Target 3's potential for resource growth.

New High-Grade Vein Discovery at Target 5 La Maquina

At Target 5, Mithril completed one drill hole (MA26-001) at the La Maquina area, located 1.6 kilometres southwest of the El Gallo workings. This hole intercepted 0.85 metres at 6.20 g/t gold and 764 g/t silver from 122.8 metres, confirming the presence of high-grade silver-gold mineralisation down dip from surface. The mineralisation is hosted within granodiorite and characterised by concordant veining with banding and microbands of black sulphides. Surface channel sampling had previously returned grades up to 3.54 g/t gold and 11.3 g/t silver over 0.5 metres, supporting the drill results. The continuity of veins mapped and sampled to the northwest presents a promising target for further drilling.

Resource Upgrade and District-Scale Exploration Progress

Meanwhile, at Target 1, two drill rigs are advancing resource upgrade drilling, with resource reporting on schedule for later in the first half of 2026. Mithril’s maiden JORC mineral resource estimate at Target 1, released in November 2021, reported an indicated resource of 691 kt at 5.43 g/t gold and 114 g/t silver, and an inferred resource of 1,725 kt at 4.55 g/t gold and 152 g/t silver, equating to a combined 373,000 ounces of gold and over 10.9 million ounces of silver. This resource underpins the district’s high-grade potential and supports ongoing development plans.

In addition to drilling, Mithril is expanding detailed geological mapping across the 70 km Copalquin mining concession, with 24 km mapped to date. The company has completed an aerial magnetic survey, currently under evaluation by a newly engaged geophysicist, to identify key geological trends and support a district-wide structural geology study. This integrated approach aims to generate new targets and refine existing ones, leveraging historic workings identified by LiDAR and remote sensing technologies.

These exploration efforts build on Mithril’s recent progress, including the acquisition of the adjacent La Dura property, which adds a brownfield asset with existing mapping, sampling, and drilling data. The La Dura property features historic high-grade mines and a 1.5 km mineralisation corridor identified for future drilling.

Strategic Outlook and Option to Acquire Full Interest

Mithril holds an exclusive option to acquire 100% interest in the Copalquin mining concessions by paying US$10 million on or before August 7, 2028. The company’s aggressive exploration program for 2026 targets up to 25,000 metres of drilling across the district, focusing on expanding known mineralised zones and testing new high-priority targets. The district’s extensive historic workings and multiple mineralisation events highlight its potential as a major epithermal gold-silver centre within the Sierra Madre Occidental.

These latest results and ongoing work align with Mithril’s strategy to unlock the broader district-scale potential at Copalquin. This follows earlier positive developments, including the maiden JORC resource and high-grade zones unveiled in early 2026, which set the foundation for the current exploration momentum.