Mr. Campbell Smyth reports

GRAFTON RESOURCES INTRODUCES THE NEW SILVER-COPPER-GOLD-ANTIMONY CALDERA PROJECT IN THE AG-CU-AU-SB PEDERNAL DISTRICT, VALPARAISO, CHILE.

Grafton Resources Inc. has established a new, high-potential Ag-Cu-Au-Sb (silver-copper-gold-antimony) project called Caldera, in the Pedernal district, Valparaiso region, Chile. The Caldera project comprises a number of concessions targeting favourable geology in the Morro Hediondo Caldera region of Petorca.

Highlights

• 3.8 kilometres of vein trends secured across continuous outcrop, entirely undrilled;
• Historical samples grade up to 4.0 g/t Au, 300 g/t Ag and 12.4 per cent Cu in epithermal vein systems;
• Vein systems previously exploited by artisanal miners and zones of strong epithermal alteration that have never been tested by modern exploration methods.

Campbell Smyth, chairman of Grafton Resources, commented: "By leveraging proprietary in-country expertise, Grafton Resources has secured licences over highly prospective vein systems that are known to host high-grade mineralization but never subjected to systematic modern exploration. The project areas sit at low elevation in a mining district that can be accessed and explored year-round. Grafton Resources geologists have already started work on these concession areas and results will follow shortly. We are excited to be able to establish a highly prospective land position on strike from an existing operating mine. "

The Caldera project -- a consolidated land position

The Caldera project consolidates multiple prospective land positions within the Pedernal district into a single coherent exploration package:

• 10 newly staked exploration concessions, totalling 2,100 hectares, covering continuous trends of mineralized vein outcrop and areas with classic epithermal alteration;
• The Silver One concessions (San Lorenzo 1-18), the subject of the company's letter of intent with Asesorias e Inversiones Sol SpA (AIS) announced on Jan. 17, 2026;
• A historic geological database covering the broader district, which originally informed the concession selection.

In combination, the Caldera project brings the principal northwest-southeast vein trend, the parallel northeast-southwest trend that hosts the Silver One concessions, and the surrounding alteration targets into a single project approximately 10 km from the producing El Bronce mine.

The Pedernal district

The Pedernal district lies on the eastern margin of the Morro Hediondo Caldera, a 14-kilometre-diameter, geologically remarkable circular structure. The area is characterized by a conspicuous porphyritic ring dike and widespread hydrothermal alteration at its centre. This circular structure, in the Petorca Municipality of central Chile, is also commonly associated with the genesis of the historic Au-Cu-Ag El Bronce mine, located five km to the southwest.

Mineralization at El Bronce is largely hosted in a series of high-grade ore shoots within consistently mineralized epithermal veins. The epithermal vein sets of El Bronce extend almost eight km in a north-south trend and is estimated to have contained 25 tonnes of gold, 105 tonnes of silver and 16,000 tonnes of Cu, at grades of 4.8 g/t Au, 20 g/t Ag and 0.3 per cent Cu. El Bronce remains in operation.

The Morro Hediondo Caldera hosts several low-sulphidation epithermal vein and alteration systems, ranging from predominantly gold-bearing veins to veins rich in base metals and silver. Outside the caldera, such as at El Bronce, gold is the dominant metal. Inside the caldera, such as in the Pedernal district, silver and copper are the dominant metals.

The new set of concessions

Grafton Resources has staked exploration concessions directly from the government, totalling 2,100 Ha, covering continuous trends of mineralized vein outcrop.

The selection of these areas was based on a historic sampling database inherited from the agreements with AIS in connection with the acquisition of the Silver One concession (see news release of Jan. 16, 2026). In addition to the samples within the Silver One concession, the database contains 150 samples from elsewhere in the district, analyzed by ICP multielement, Au fire assay and selected base metals by atomic absorption.

Ninety-two per cent of the samples returned anomalous Cu (greater than 0.1 per cent Cu), 24 per cent exceeded 3.0 per cent Cu and the maximum was 12.4 per cent Cu. Silver shows a similar pattern, with 25 per cent of the samples exceeding 100 ppm (parts per million) Ag. Notably, 12 per cent of the silver assays exceeded the method's maximum detection limit (100 ppm in some cases, 300 ppm in others), so the true grades of these samples remain unknown. Few samples were assayed for gold, and the highest values (up to 4.0 g/t Au) come from the Silver One area.

All anomalous silver samples also returned very high values for antimony (up to 1.22 per cent Sb), arsenic (up to 7,300 ppm As) and mercury (up to 8,040 ppm Hg) -- a typical epithermal low-sulphidation signature, consistent with the upper levels of the system. The sampling, carried out by AIS, was done during 2021. Most results are supported by laboratory certificates but lack formal QA/QC (quality assurance/quality control) and should be treated as a historical, initial indicator only.

The principal concession block covers 3,100 m of the northwest-southeast vein trend, along which 13 samples grade more than 3.0 per cent Cu and seven exceed 100 g/t Ag. The northwestern end of the trend includes the historic artisanal La Plata mine, where local residents report past production of very high-grade silver ore. A second block of concessions covers 900 m of a northeast-southwest trend, interpreted as a parallel to the Silver One vein system. To the west-southwest, one concession covers one of the strongest hydrothermal alteration zones in the caldera. Two further concessions cover the strike extensions of historic Cu-Ag mines in the north of the district (Los Maquis and La Nueva).

Elevations within the project area range from 1,000 m to 1,800 m above sea level. Access is via established paved roads from Chincolco and gravel roads from Pedernales, allowing year-round work.

Silver One definitive agreements

The company, its wholly owned Chilean subsidiary Grafton Resources Chile SpA, and AIS have entered into: (i) a framework agreement dated July 21, 2026; (ii) two definitive option agreements dated July 21, 2026, relating to each of the Silver One concession, and the Silver Two and Silver Three concessions, respectively; and (iii) a share consideration agreement dated July 21, 2026, which supersede the letter of intent announced by the company on Jan. 16, 2026.

Under the revised terms of the Silver One agreements, the company has been granted: (i) an option to acquire a 100-per-cent interest in the Silver One property (comprising the Silver One, Silver Two and Silver Three concessions) on the following basis:

• Cash payments totalling $248,000, to be paid in a first tranche of $148,000 on signing and a further $100,000 within 24 months of signing;
• Share consideration equal in value to $400,000 in aggregate, to be issued in two tranches of $200,000 on signing and a further $200,000 within 24 months of signing. The number of shares issued in each tranche is calculated using the closing price of the company's common shares on the Canadian Securities Exchange (CSE) on the trading day immediately preceding issuance.

The option remains subject to CSE approval. On exercise of the option, and assuming that the Silver Two and Silver Three mining concession applications (pedimentos) are approved, Grafton Chile will hold a 100-per-cent interest in the Silver One property (which will be consolidated under the wider Caldera project).

Historic data acquisition

Under an additional information agreement with AIS, a historic geological database covering the broader Caldera licence area, comprising approximately 150 surface and underground samples with multielement assays has been acquired by Grafton Resources. The database was used in the selection of the concessions described above and it will continue to support target generation across the consolidated Caldera project.

Next steps

Grafton Resources has begun a geological reconnaissance of the granted areas. This program will resample the historically mineralized sites, extend the sampling coverage to support the consolidated Caldera project, and produce preliminary geological models of each occurrence. Results will be reported as they become available.

Qualified person

Gilberto Schubert (BSc, MSc, MBA, MSc, Min Ec), a qualified person as defined by National Instrument 43-101 and geological consultant to the company, has reviewed and approved the technical information provided in this news release, including the historical sample database and the analytical methods used at this time. Mr. Schubert is not independent, as he is a director of the company. The QP verified selected laboratory assay certificates against the reported rock samples. Insufficient work has been done to validate the sampling methodology and the validity of the historical results presented.

About Grafton Resources Inc.

Grafton Resources is a Canadian exploration company listed on the Canadian Securities Exchange (CSE), focused on the discovery and development of copper and gold assets in the Americas. The company is committed to responsible exploration, strong community partnerships and generating shareholder value through disciplined project advancement.

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