Mr. Mark Ireton reports

MEDARO SIGNS LOI TO ACQUIRE UP TO 100% INTEREST IN THE PAST PRODUCING SALA SILVER-ZINC PROJECT, SWEDEN

Medaro Mining Corp. has entered into a non-binding letter of intent with Alicanto Minerals Ltd. (the optionor), pursuant to which Medaro may acquire up to a 100-per-cent legal and beneficial interest in the Sala zinc-silver project, located in Sweden. The property comprises several exploration permits covering an area of 91 square kilometres prospective for zinc and silver. The LOI provides for an exclusivity deposit, and the parties are targeting execution of a definitive agreement by the end of May, 2026.

Sala is a brownfield polymetallic zinc-silver-lead skarn project located in the Bergslagen mining district of Sweden, approximately 180 kilometres from Stockholm. The project hosts an inferred mineral resource of 9.7 million tonnes at 214 grams per tonne silver equivalent.

Key highlights:

• Inferred mineral resource of 9.7 million tonnes at 214 g/t AgEq, including zinc, silver and lead mineralization defined at the Prince Lode and Sala/Sala NW zones;
• Established brownfield setting, with historic mining activity at Sala dating back to at least the 15th century;
• High-grade historic silver-lead production, with more recent geological reviews citing cumulative historic production of approximately 450 tonnes silver and 35,000 tonnes lead from approximately five million tonnes of mined material;
• Demonstrated high-grade mineralization, including locally bonanza-grade silver ore historically mined at Sala and high-grade zinc-silver-lead drill intercepts reported by Alicanto;
• Substantial exploration data set, including more than 28,000 metres of diamond drilling completed by Alicanto and review of over 35,000 metres of historical drill core;
• Multiple growth targets, with the mineralized system remaining open in several directions and priority targets identified around Prince Lode, Sala, Sala NW and Bronas within the property and other limestone/dolomite-hosted zones;
• The 2025 Fraser Institute ranked Sweden as the second-top jurisdiction in Europe and ninth globally.

The Sala zinc-silver project comprises a zinc-silver-lead mineralized limestone/skarn system hosted within the Bergslagen volcanic region. The deposit has geological similarities to other major polymetallic underground mines in the district, including Boliden's Garpenberg and Zinkgruvan mines.

The current inferred mineral resource includes the Prince lode (located immediately south of the historic Sala mine) and the Sala mine/Sala NW zone. Alicanto reported that the Prince lode has been defined over approximately 950 m of strike and 700 m downdip, while the silver-dominant Sala mine/Sala NW zone has been defined over approximately 350 m of strike and 485 m downdip.

The broader Sala project area remains underexplored relative to its historic significance. Alicanto reported base metal mineralization extending over more than three km by 1.5 km within the prospective limestone/dolomite host sequence, with numerous follow-up targets (including the Bronas mine area, which historically produced ore grading approximately 350 g/t Ag, 2.0 per cent Zn and 4.2 per cent Pb6) as well as surface rock-chip results (including 1,480 g/t Ag, 1.3 per cent Cu and 10.3 per cent Zn).

Alicanto Minerals

Alicanto Minerals is an Australian gold exploration and development company focused on advancing the Mount Henry gold project in Western Australia's Eastern goldfields. Mount Henry hosts a 915,000-ounce JORC (2012) mineral resource defined across three primary deposits within a broader, approximately 16-kilometre mineralized corridor.

Alicanto is backed by a highly experienced Board, leadership and technical team with a proven record of success across companies including Firefly Metals Ltd., Bellevue Gold Ltd., Cygnus Metals Ltd., Andean Silver Ltd. and Midas Minerals Ltd., bringing deep expertise across geology, project development and capital markets to advance Mount Henry as a scalable gold system with a clear pathway to development.

Transaction terms

Pursuant to the LOI, the company may acquire up to a 100-per-cent interest in the property in stages by making cash payments and share issuances to the optionor and incurring exploration expenditures.

The company may earn up to a 90-per-cent interest in the property by making aggregate cash payments of $800,000, issuing an aggregate of 800,000 common shares and incurring aggregate exploration expenditures of $1.75-million as follows:

• Initial payment: $50,000 in cash and 250,000 consideration shares, payable within five days of the effective date of the definitive agreement;
• Year 1 earn-in (50-per-cent total interest): $250,000 in cash, 250,000 consideration shares and $750,000 of exploration expenditures on or before the first anniversary of the effective date;
• Year 2 earn-in (90-per-cent total interest): $500,000 in cash, 300,000 consideration shares and $1-million of exploration expenditures on or before the second anniversary of the effective date.

Following completion of the earn-in, the company may acquire the remaining 10-per-cent interest in the property by paying $500,000 in cash and issuing 400,000 consideration shares on or before the third anniversary of the effective date.

Upon the company earning a 90-per-cent interest in the property, the optionor will retain a 1.0-per-cent net smelter return royalty, which will increase to 2.0 per cent upon the company acquiring a 100-per-cent interest in the property.

The earn-in and the option are exercisable at the company's sole discretion, and the company may accelerate the timing of the payments, share issuances and exploration expenditures.

All securities issued in connection with the transaction will be subject to a four-month statutory hold period in accordance with applicable securities laws.

The completion of the transactions contemplated by the earn-in and option are subject to a number of terms and conditions, including and without limitation to the following: negotiation and execution of a definitive agreement; there being no material adverse changes in respect of either the company or the optionor; the parties obtaining all necessary consents, orders and regulatory approvals, including the approval of the Canadian Securities Exchange if required; completion of customary due diligence by each party of the other party; and other standard conditions of closing for a transaction in the nature of the earn-in and option.

Comments on historic resource estimate

The Sala zinc-silver project hosts a historical mineral resource estimate prepared by Alicanto Minerals in accordance with the JORC Code (2012 edition), as announced on July 13, 2022, entitled "Outstanding maiden Resource confirms Sala has global scale with immense scope for more growth." Alicanto reported an inferred mineral resource estimate of 9.7 million tonnes grading 3.2 per cent Zn, 47.3 g/t Ag and 0.5 per cent Pb (4.5 per cent ZnEq (zinc equivalent) or 214 g/t AgEq) at a 2.5-per-cent ZnEq cut-off, containing approximately 311,000 tonnes Zn, 14.7 million ounces Ag and 44,200 tonnes Pb. The estimate was prepared by Cube Consulting Pty. Ltd. using ordinary kriging and dynamic interpolation methods applied to geological wireframes constrained by drilling, geological interpretation and mineralization domains. The estimate incorporated 135 drill holes for approximately 35,909 metres of drilling, including approximately 20,771 metres of drilling completed by Alicanto between 2021 and 2022. Metal equivalent calculations assumed recoveries of 93.8 per cent Zn, 82.0 per cent Ag and 89.9 per cent Pb and metal prices of $2,976 (U.S.) per tonne Zn, $22.62 (U.S.) per ounce Ag and $2,259 (U.S.) per tonne Pb. Alicanto reported that all resources were classified as inferred mineral resources under the JORC code due to drill spacing, continuity assumptions and reliance in part on historical drilling data.

A qualified person on behalf of Medaro has not completed sufficient work to classify the historical estimate as current mineral resources or mineral reserves under National Instrument 43-101, and Medaro is not treating the historical estimate as current mineral resources or mineral reserves. The historical estimate is considered relevant as it demonstrates the presence of a significant polymetallic Zn-Ag-Pb mineralized system and provides an exploration target basis for further technical review. However, additional work will be required to verify the estimate, including review and validation of the drill hole database, quality assurance/quality control procedures, geological modelling, density assumptions, estimation methodology and underlying supporting technical data, as well as confirmatory drilling and metallurgical test work. The historical estimate was prepared and reported in accordance with the JORC code (2012 edition).

The JORC code inferred mineral resource category is broadly comparable with the CIM (Canadian Institute of Mining, Metallurgy and Petroleum) definition standards for an inferred mineral resource incorporated by reference in NI 43-101. Both classifications are intended to reflect mineralization for which quantity and grade are estimated on the basis of limited geological evidence and sampling and for which geological and grade continuity are reasonably assumed but not verified. Both classifications carry a lower level of confidence than indicated or measured mineral resources and are considered too speculative geologically to have economic considerations applied to them in a manner that would enable categorization as mineral reserves. While there are differences in reporting and disclosure requirements between the JORC code and NI 43-101, no material differences are considered to exist between the underlying definitions of an inferred mineral resource and readers are cautioned not to place undue reliance on the historical estimate.

Qualified person

Amanda Scott, FAusIMM, a qualified person as defined under NI 43-101, Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.

About Medaro Mining Corp.

Medaro is a mineral exploration company focused on the acquisition and advancement of high-quality mineral projects in Ontario, Quebec and Sweden. The company's strategy is to build shareholder value through systematic exploration, disciplined project evaluation and responsible development.

We seek Safe Harbor.