Exceptional Drilling Results from Mithril Silver and Gold at Copalquin

Mithril Silver and Gold Extends High-Grade Mineralisation at Target 3, Copalquin

Mithril Silver and Gold Limited (ASX: MTH, TSXV: MSG, OTCQB: MTIRF) has delivered exceptional drilling results from Mithril Silver and Gold at Target 3 at its flagship Copalquin project in Mexico, confirming extensive high-grade silver and gold mineralisation across a 700-metre strike length. The results reinforce Copalquin's status as a district-scale epithermal system spanning 9 kilometres with over 1,200 metres of vertical extent.

Furthermore, these latest discoveries position Mithril as a significant player in Mexico's precious metals sector, with the company systematically unlocking the potential of one of the country's most promising epithermal systems.

Outstanding Target 3 Drilling Results Delivered

The latest drilling campaign has produced some of the most impressive intercepts to date, demonstrating the exceptional grades that make epithermal systems highly attractive to investors.

Target 3 Standout Results

The 3,039-metre drilling programme tested four historic workings within the 1.2km x 1.2km Target 3 area, with results confirming extensive epithermal-style mineralisation:

• 0.90m @ 2.79 g/t gold, 151 g/t silver from 151.0m (JA26-002)
• 0.50m @ 6.91 g/t gold, 475 g/t silver from 102.5m (JA26-004)
• 0.50m @ 33.2 g/t gold, 5.9 g/t silver from 134.95m (GU26-002)

Importantly, the drilling results from Mithril Silver and Gold indicate the best intercepts and vein thicknesses were found deeper in drill holes, suggesting the system remains open for expansion. This discovery pattern is particularly encouraging for future resource growth potential.

Target 5 Adds New High-Grade Discovery

At Target 5, Mithril has made a significant new discovery at La Maquina, where no historic workings were previously known. This breakthrough demonstrates the effectiveness of modern exploration techniques in identifying previously overlooked mineralisation.

La Maquina Discovery

The standout intercept of 0.85m @ 6.20 g/t gold, 764 g/t silver from 122.8m (MA26-001) extends high-grade mineralisation 68 metres down-dip from surface. The mineralisation is hosted within granodiorite and located 1.6km southwest of El Gallo.

In addition, this discovery validates Mithril's systematic exploration approach combining ground mapping, sampling, and advanced remote sensing techniques across the broader district.

What is Epithermal Mineralisation?

Epithermal deposits form from hot, mineral-rich fluids circulating near the Earth's surface, typically at depths of 50-1,500 metres below the ancient surface level. Understanding these systems is crucial for investors evaluating precious metals projects.

These systems are characterised by:

• High-grade precious metal concentrations in quartz veins and fragmented rock zones
• Large-scale alteration zones extending beyond mineralised areas
• Multiple generations of mineralisation creating extensive systems
• Excellent processing characteristics with high gold and silver recoveries

Why it matters to investors: Epithermal systems like Copalquin often contain multi-million ounce resources and are among the most profitable mine types due to their high grades and relatively simple processing requirements.

Aggressive 2026 Exploration Campaign Underway

Mithril is executing an ambitious 25,000-metre drilling programme across the first 6-8 months of 2026. However, this represents just the beginning of a systematic approach to unlock the district's full potential.

Key 2026 Objectives

1. Resource expansion at Target 1 (resource update scheduled H1 2026)
2. Testing new high-priority targets identified through systematic mapping
3. Integration of district-wide geophysical data from recent surveys
4. Advancing district-scale exploration thesis across the 70km² concession

Moreover, the company has completed detailed mapping across 24km² of the 70km² mining concession, with LiDAR surveys identifying over 300 historic workings requiring systematic evaluation.

Expert Commentary on Recent Success

"The drilling results from Mithril Silver and Gold open up new expansion opportunities within the Copalquin district with the drill-confirmed vein extensions from historically mined and recently mapped veins. The intersection of both high-grade silver and gold at the Jabali area is unique for the eastern part of the district," commented James Barr, VP Exploration.

Strong Foundation: Established JORC Resource at Target 1

Mithril's exploration success builds upon an established JORC-compliant resource at Target 1, providing a solid foundation for the expanding district exploration programme.

Key Resource Highlights

• 28.6% indicated classification demonstrating resource confidence
• Average vein width of 4.5 metres supporting underground mining potential
• High-grade core with 91% silver recovery and 96% gold recovery demonstrated
• Conventional processing methods validated through preliminary testing

Strategic Asset Portfolio Expansion

Beyond Copalquin, Mithril has strategically added the 20km² La Dura property, providing additional value through proven geological potential.

Furthermore, this expansion provides:

• Brown-field opportunity with existing geological database
• 4-level high-grade La Dura mine with historic production
• 1.5km mineralisation corridor identified as priority drill target
• Multiple historic workings revealed through LiDAR surveys

The addition of La Dura expands Mithril's total land position to 90km² in the prolific Sierra Madre Occidental trend.

Target 3 Drilling Programme Details

The drilling results from Mithril Silver and Gold at Target 3 tested four distinct areas within the broader target zone, each demonstrating unique characteristics of the epithermal system.

Jabali Area

Six drill holes tested two veins mapped on surface and within historical workings. The Jabali main workings feature less than 150 metres of lateral development over two levels, whilst smaller southern workings have approximately 40 metres of development on one level.

Recent channel sampling in the Jabali main workings returned results of up to 0.65m @ 16.0 g/t gold and 1,275 g/t silver. These surface results validate the high-grade potential intersected in drilling.

Guadalupe Area

Five holes tested the continuation of a small historical working. Hole GU26-002 intersected minor veining and stockwork with visible gold.

In addition, channel samples from quartz veining near historical workings on surface returned 13.25 g/t gold and 558 g/t silver over 0.50m, confirming the continuity of high-grade mineralisation.

Constancia Area

Two holes tested northwest trending Constancia veins. The first hole tested a small historical working approximately 150 metres south of Jabali.

However, the second tested down-dip continuity of mapped surface veining 100 metres south of the Guadalupe workings, demonstrating the interconnected nature of the vein system.

El Maizon Area

Two holes tested continuity of a newly mapped vein grading 0.25 g/t gold and 23 g/t silver over 0.50m along an interpreted east-west trend. The holes successfully intersected quartz breccia and epithermal veining with anomalous gold and silver values over several intervals.

Why Investors Should Follow Mithril Silver and Gold

The company presents a compelling investment thesis based on systematic exploration success and district-scale potential.

Compelling Investment Thesis

1. District-Scale System: Copalquin represents a rare district-scale opportunity with 9km of strike length and multiple target areas beyond the established resource

2. High-Grade Resource Growth: The drilling results from Mithril Silver and Gold at Target 3 and Target 5 demonstrate significant expansion potential with mineralisation remaining open in all directions

3. Systematic Exploration Success: The La Maquina discovery validates Mithril's modern exploration techniques combining geological mapping with advanced geophysical methods

4. Strategic Location: Position within the Sierra Madre Occidental trend provides access to world-class epithermal systems with established infrastructure

5. Clear Development Pathway: With conventional underground mining methods indicated and high metallurgical recoveries demonstrated, Copalquin offers a clear path to production

Financial Position and Upcoming Catalysts

Financial Position: Mithril maintains the financial capacity to execute its aggressive 2026 exploration programme whilst advancing resource development at Target 1.

Furthermore, investors should monitor these upcoming catalysts:

• Q2 2026: Updated JORC resource estimate incorporating Target 1 expansion drilling
• Mid-2026: Results from 25,000m district-wide drilling campaign
• H2 2026: Completion of geological mapping across entire 70km² concession
• 2026-2028: Systematic testing of 300+ identified historic workings

Mithril Silver and Gold has positioned itself as a major player in Mexican precious metals exploration, with exceptional high-grade discoveries at Target 3 and Target 5 demonstrating the district-scale potential at Copalquin. With an aggressive 25,000-metre drilling programme underway and resource expansion drilling progressing at Target 1, investors should closely monitor upcoming developments as Mithril unlocks one of Mexico's most promising epithermal silver-gold systems.

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