Mr. Daniel Rodriguez reports

MERCADO MINERALS PROVIDES EXPLORATION UPDATE ON COPALITO; REVEALS NEW VEIN DISCOVERIES

Mercado Minerals Ltd. has made continued progress from continuing exploration activities at its flagship Copalito project. The company's technical team in Mexico has been actively mapping, sampling and advancing preparations for Mercado's inaugural 3,000-metre diamond drill program.

Exploration highlights:

• Newly discovered veins in outcrop have been identified in three previously unexplored areas, with significant ground still to be evaluated.
• Mapping and prospecting are 40 per cent complete, which is designed to comprehensively cover all areas of the Copalito project yet to be mapped and explored.
• Drone-based airborne magnetic surveying is completed. Preliminary data reveal potential vein extensions and will provide valuable structural insights when combined with mapping and geochemical data.
• Drone lidar surveying has been completed. Following receipt of the survey data, analysis of the data will commence to investigate for features that may potentially be associated with vein mineralization outside of the known veins on the property.
• Soil sampling on the property is 25 per cent complete, which is covering the potential northwest extension of the vein system at Copalito.

Discovery of new veins and outcrops

Prospecting across underexplored areas of Copalito has led to the discovery of multiple new vein occurrences in outcrop. Three newly identified areas of vein mineralization occur as quartz to quartz-carbonate veins, vein breccias and stockworks that range in width from 0.5 metre to 1.5 metres. Individual vein outcrops have been traced over a strike length of one metre to 10 metres, with two of the three new areas having veins exposed intermittently over a strike length of approximately 100 metres and 200 metres, respectively.

One of the new vein discoveries, currently interpreted to be the extension of the 5 Senores vein, occurs approximately one kilometre to the northwest of the last known location of the vein. This vein segment can be traced intermittently in two large outcrops over approximately 100 metres of strike length.

The second vein discovery, located near a historical surface float sample that returned 460 grams per tonne silver, 0.31 g/t gold, 0.17 per cent lead and 0.16 per cent zinc, appears to be an extension of either the Cobriza or El Pilar veins. This new vein can be traced intermittently in four outcrops over 200 metres of strike length. The reader is cautioned that the above assay result is of a historic nature and that grab and float samples are not reliably indicative of the nature of the vein mineralization.

The third discovery is located approximately 500 m southwest of the 5 Senores vein, in an area with no previously documented mineralization. The discovery outcrop occurs as silicification and quartz stockwork found in andesite, which hosts galena sulphides and potentially silver-bearing sulphosalts. This area is intriguing as it is potentially located outside of the Copalito graben, within which all previous known mineralization has been discovered.

All newly identified veins and mineralization have been sampled and are ready for shipment and analysis. Results from these samples will be released to the market once received. The full significance of the newly identified veins and mineralization is unknown pending further investigation and assay results.

Drone airborne magnetic survey

The high-resolution drone-based magnetic survey has been completed, with data being compiled for detailed interpretation. Early integration of magnetic results with existing geological and geochemical data sets is yielding encouraging correlations. Preliminary imagery highlights magnetic lineaments that correlate with known structures that host veins and mineralization, as well as new magnetic signatures away from known veins that have the potential to reveal new structures, potential veins and extensions to known veins. Current mapping and prospecting efforts in the areas of these new magnetic signatures have encountered new structures and vein mineralization discoveries that support this correlation.

Drone lidar survey

Processing of the completed drone lidar survey is under way. Initial interpretation is expected to enhance understanding of surface expressions, identify subtle topographic features associated with veining, reveal areas with historic mine workings, and highlight new areas of interest for sampling and mapping.

Soil sampling

A systematic soil grid covering the know vein system and unexplored portions of Copalito is 25 per cent complete. The program is designed to fingerprint the soil geochemical signature over the known veins and expand the grid toward the northwest to help further define the extension of existing veins or identify new target areas. This may reveal signatures that can aid in identifying new veins and vein systems in underexplored areas, as well as providing insight into the outcropping veins at Copalito.

Chief executive officer comments

Daniel Rodriguez, chief executive officer and director, commented: "Our team is firing on all cylinders as we advance Copalito toward our first drill program. Prospecting in underexplored areas is already proving highly rewarding, and I'm eager to see the assay results from the newly discovered veins. Our technical team in Mexico continues to demonstrate exceptional expertise in the Sierra Madre, and, with drilling on the horizon, I look forward to being on the ground with them as we take this next major step."

Qualified person

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects), and was reviewed and approved by Kelson Willms, PGeo, of Archer, Cathro & Associates (1981) Ltd. Mr. Willms is a qualified person for the purposes of National Instrument 43-101.

About Mercado Minerals Ltd.

Mercado is a silver-focused exploration company targeting the next world-class discovery in Mexico's emerging Western silver belt, part of the prolific Sierra Madre Occidental mining district. With a proven team boasting extensive experience in Mexican exploration, Mercado is actively advancing multiple projects across more than 3,000 hectares. The company is committed to creating shareholder value through disciplined exploration, strategic growth and discovery-driven results.

We seek Safe Harbor.