Mithril Silver and Gold Delivers High-Grade Copalquin Drill Results Ahead of Resource Update

Mithril Silver and Gold Drills 4.01 g/t Gold and 225 g/t Silver Over 7.25 Metres at Copalquin — Resource Update Imminent

Mithril Silver and Gold Limited (ASX: MTH | TSXV: MSG | OTCQB: MTIRF) has released the final batch of drill results from its 2026 Target 1 resource upgrade campaign at the Copalquin district in Durango State, Mexico — and the numbers are compelling. The company has now completed its near-term drilling objectives at the El Refugio and La Soledad areas within Target 1, setting the stage for an updated Mineral Resource Estimate (MRE) anticipated in late June 2026.

The headline intercept — 7.25 metres grading 4.01 g/t gold and 225.1 g/t silver (7.22 g/t AuEq) from drill hole RE26-013 — sits approximately 190 metres from a previously announced result of 9.65 metres at 7.00 g/t gold and 370.3 g/t silver (12.29 g/t AuEq). Together, these two intercepts demonstrate meaningful lateral continuity across the western expansion zone of the El Refugio structure.

With 11,238 metres of drilling now complete out of a planned up to 25,000 metres across the Copalquin district, Mithril is executing an aggressive 2026 programme designed to expand known zones, test new targets, and unlock a resource upgrade that management believes could deliver a substantial conversion from Inferred to Indicated classification.

The Numbers That Matter: Key Intercepts from the Final Drilling Phase

The following table summarises the standout results reported in this announcement across both the El Refugio and La Soledad areas:

The peak intercept within RE26-013 — 0.50 metres at 15.25 g/t gold and 533 g/t silver — represents the kind of exceptionally high-grade core that epithermal systems are known to produce. While narrow, this sub-interval sits within a broader 12.6-metre zone of quartz-filled polymictic breccia, which the company's geologists interpret as evidence of a large, high-energy mineralised system.

"The continued success at the western expansion area of El Refugio has defined continuity of the structure with a plunge of mineralisation directed to the northwest that remains open for further drill testing in the future." — James Barr, VP Exploration, Mithril Silver and Gold

Understanding the Geology: What Is an Epithermal System and Why Does It Matter?

What Is a Low-Sulphidation Epithermal Deposit?

An epithermal deposit forms when hot, mineral-rich fluids travel upward through fractures and faults in the Earth's crust and deposit metals — primarily gold and silver — as they cool closer to the surface. "Low-sulphidation" refers to a specific chemical environment within these systems, typically associated with near-neutral, near-surface fluids.

These conditions tend to produce well-structured vein and breccia systems that are geologically predictable — and very well suited to bulk-scale underground mining. Furthermore, the vein and breccia geometry at Copalquin — with average widths of approximately 4.5 metres — is well-matched to conventional underground mining methods, as supported by the company's own conceptual mining study.

Why Does This Matter to Investors?

Epithermal systems in Mexico's Sierra Madre Occidental have historically been among the most productive silver-gold belts in the world, hosting numerous multi-million-ounce deposits. The presence of wide breccia textures, including a 12.6-metre zone in RE26-013, suggests potential for bulk-mineable widths at high grades — not just narrow high-grade veins.

In addition, the system at Copalquin remains open to depth, meaning drilling has not yet reached the lower limits of mineralisation. This characteristic typically signals further resource growth potential, which is a key consideration for investors monitoring the story.

Glossary of Key Terms

• AuEq (Gold Equivalent): A method of expressing combined gold and silver grades as a single gold figure using a price ratio. Mithril uses a 70:1 gold-to-silver price ratio with 93% assumed recovery for both metals in this calculation.
• Inferred Resource: The lowest confidence category in JORC/NI 43-101 resource estimation. Conversion to Indicated through infill drilling is what Mithril's current campaign is designed to achieve.
• Indicated Resource: A higher-confidence resource category that carries sufficient geological understanding to support preliminary economic assessments.
• Quartz Breccia: A rock type formed by the fracturing and cementation of fragments within a quartz-rich vein system. Often associated with high-energy fluid events and commonly hosts gold and silver mineralisation.
• Post-Mineral Dyke: An intrusive rock body that cuts across an existing mineralised zone after mineralisation occurred. Recent drilling at El Refugio confirmed that mineralisation continues at similar grade and thickness across such a dyke.

What This Drilling Campaign Has Unlocked: The Geological Breakthrough

One of the more technically significant outcomes from this campaign is Mithril's identification and characterisation of a post-mineral dyke system within the El Refugio structure. Previously, geological modelling treated this unit as part of the pre-mineral volcanic package — effectively masking the continuity of the mineralised zone across it.

Recent K-Ar age dating has now confirmed that mineralisation formed approximately 27 million years ago, while the intrusive dyke is younger, dating to approximately 22 million years ago. This means the dyke physically split and offset the mineralised structure after gold and silver were deposited — but the mineralisation itself was not destroyed.

Drilling has consequently confirmed that grades and widths are comparable on both sides of the dyke. This breakthrough has meaningfully de-risked the geological model and will be incorporated into the updated MRE for the first time.

The El Refugio system now comprises four veins on the footwall and hangingwall sides of the main structure — up from what was modelled in earlier work — following infill drilling that identified two additional veins earlier in 2026. At La Soledad, meanwhile, drilling has identified six sub-parallel mineralised structures in the footwall near the intersection with the Refugio main vein, further expanding the geological complexity and resource potential of the Target 1 area.

The Copalquin District: A District-Scale Opportunity

Mithril's Copalquin property is not a single-mine story. The 70 km² mining concession in Durango State spans an entire historic mining district. Key features include:

• Over 100 historic underground workings dating from approximately 1850 to 1910
• 200 small surface workings
• Multiple distinct target areas across the lower and upper portions of the concession
• A 7-kilometre strike length of semi-continuous mineralised zones across the southern portion alone
• Evidence of a large epithermal silver-gold system with multiple conduit structures

The northern half of the concession — covering large alteration zones identified through LiDAR imagery — represents an additional, potentially significant exploration area that has not yet been drill-tested.

Programme Scope and Progress

The La Dura Property: Expanding the Portfolio

In December 2025, Mithril secured an exclusive option to acquire 100% of the 2,052-hectare La Dura gold-silver property, located approximately 20 kilometres from Copalquin in Durango, Mexico. This brownfield property adds considerable optionality to the portfolio, including:

• A database of historical mapping, sampling, and drilling
• Multiple historic workings revealed by LiDAR survey, including the 4-level high-grade La Dura mine
• An initial 1.5-kilometre mineralisation corridor identified as a future drill target
• An aerial magnetic survey that has been completed, with interpretation work currently in progress

As part of the initial acquisition consideration, Mithril will issue 50,000 ordinary shares at A$0.51 per share to the vendor alongside an initial payment of US$25,000. The shares are subject to a four-month hold period.

The addition of La Dura broadens Mithril's footprint in the Durango silver-gold belt without materially diluting existing shareholders, and positions the company to expand exploration activity once initial targeting work is complete.

What's Next: Catalysts to Watch

Mithril's near-term schedule is active, with several investor-relevant milestones anticipated in the coming weeks and months.

Immediate (Late June 2026)

The updated Target 1 Mineral Resource Estimate will incorporate:

• New western El Refugio extension drilling results
• Post-mineral dyke modelling for the first time
• Targeting substantial conversion from Inferred to Indicated classification
• New vein discoveries, now four veins at El Refugio, and six sub-parallel structures at La Soledad

H2 2026 and Beyond

Looking further ahead, a number of additional catalysts are on the horizon:

• Expansion of ground-based mapping activities to the District North Section, an area of large alteration zones not yet drill-tested
• Target development at previously undrilled locations across the district
• Extensional drilling to follow up on previous successes in the Target 5 area
• Continued interpretation of the aerial magnetic survey at La Dura
• Ongoing integration of district-wide geophysical data across Copalquin

The Investment Case: Size, Grade, and a Resource on the Move

The existing Target 1 maiden resource at Copalquin already demonstrates meaningful scale and grade at this early stage of development.

Target 1 Maiden Mineral Resource Estimate (2021, 2.0 g/t AuEq Cut-Off)

Several key points emerge from the existing resource:

• Only 28.6% of total resource tonnage is currently classified as Indicated, meaning the majority sits in the lower-confidence Inferred category — with the 2026 drilling campaign directly targeted at upgrading this
• Average vein width of approximately 4.5 metres, consistent with the intercepts being reported throughout 2026
• Preliminary metallurgical test work produced recoveries of 96% for gold and 91% for silver — strong results that support the economic case for the deposit
• Conventional underground mining methods have been identified as appropriate in a conceptual mining study

Importantly, the maiden resource was established using just 77 drill holes. Mithril has since drilled 127 additional holes at Target 1 — more than doubling the dataset — and the forthcoming updated MRE will reflect this significantly expanded knowledge base for the first time.

The company holds an exclusive option to purchase 100% of the Copalquin mining concessions for US$10 million, exercisable on or before 7 August 2028, providing a clear pathway to outright ownership.

Why Investors Should Keep Watching Mithril

Mithril sits at a genuinely consequential inflection point. However, to fully appreciate the significance of this moment, it helps to consider what the 2026 drilling campaign has collectively achieved:

1. Extended the El Refugio structure laterally to the west and confirmed mineralisation continues across a post-mineral dyke that previously masked continuity
2. Delivered high-grade intercepts across multiple holes, including the headline 7.25 metres at 7.22 g/t AuEq
3. Identified new veins within the El Refugio system and additional sub-parallel structures at La Soledad
4. Established grade and geological continuity across a broader footprint — directly supporting the upcoming resource upgrade
5. Expanded the district portfolio through the La Dura option, adding a second brownfield target with initial surveys now complete

With a resource update expected within weeks, a continued drilling programme across one of Mexico's most historically productive silver-gold belts, and a system that remains open to depth, Mithril represents a compelling watch for investors focused on precious metals exploration in a Tier-1 mining jurisdiction.

Mithril Silver and Gold has positioned itself as a district-scale precious metals explorer in Mexico's Sierra Madre gold-silver belt, with a high-grade, growing resource at Copalquin and an imminent resource update that targets a substantial conversion of Inferred ounces to a higher confidence category. With extensional drilling at Target 5, new target development across a largely untested northern district section, and the La Dura property adding further optionality, the H2 2026 news flow could be significant for investors tracking this story.

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