Mr. John Skeet reports

MITHRIL SILVER & GOLD KICKS OFF MAIDEN DRILL PROGRAMME AT TARGET 3, IN THE MULTI-TARGET COPALQUIN GOLD-SILVER DISTRICT

Mithril Silver and Gold Ltd.'s 2026 drilling is off to a good start, with work commenced at target 3 at its Copalquin district gold-silver project in Durango state, Mexico.

Target 3 is a large area with significant historical mining activity on the eastern side of the district. Recent channel sampling results, at the El Jabali historic workings in target 3, returned results up to 0.65 metre (m) at 16 grams per tonne (g/t) gold and 1,275 g/t silver (see news release dated Dec. 1, 2025). Approximately 3,300 metres is planned at target 3 for its inaugural program as part of the 25,000 metres of drilling planned for the Copalquin district in the first half of 2026.

The target 3 maiden drill program is designed to test the continuity and scale of mineralization and represents an important step toward unlocking the broader potential of the Copalquin epithermal system as the company continues to advance multiple targets in parallel.

Additionally, target 5 and target 1 drilling is progressing, with the target 1 drilling scheduled for completion during Q1 (first quarter) 2026, ahead of updating the target 1 maiden mineral resource estimate (MRE).

The drone magnetic survey over the Copalquin and the La Dura mining concession areas will commence this month, and the company is expecting further assays from 2025 over the next few weeks.

"We are very pleased to have commenced drilling at target 3 following the Christmas break, marking another important milestone as we continue to advance multiple high-priority areas across the Copalquin district," said John Skeet, managing director and chief executive officer.

"The 3,300-metre maiden drill program at target 3 is commencing around the El Jabali historic workings, where recent channel sampling delivered high-grade results of up to 0.65 metres at 16 grams per tonne gold and 1,275 grams per tonne silver. Target 3 represents a large and highly prospective area on the eastern side of the district, underpinned by extensive historic mine workings.

"As we have seen across the Copalquin district, multiple high-grade historic workings and targets provide strong evidence of a well-developed feeder-style epithermal system. Our programs are designed to test both continuity and scale of mineralization at our targets and are important steps in our strategy to unlock the broader district-scale potential of the Copalquin epithermal system as we advance several targets in parallel."

About the Copalquin gold silver project

The Copalquin mining district is located in Durango state, Mexico, and covers an entire mining district of 70 square kilometres containing several dozen historic gold and silver mines and workings, 10 of which had notable production. The district is within the Sierra Madre gold-silver trend, which extends north-south along the western side of Mexico and hosts many gold and silver districts.

Multiple mineralization events, young intrusives thought to be system-driving heat sources, widespread alteration, together with extensive surface vein exposures and dozens of historic mine workings, identify the Copalquin mining district as a major epithermal centre for gold and silver.

Within 15 months of drilling in the Copalquin district, Mithril delivered a maiden JORC mineral resource estimate at the first of several target areas (target 1), demonstrating the high-grade gold and silver resource potential for the district. This maiden resource is detailed below (see news release dated Nov. 17, 2021) and in a National Instrument 43-101 technical report filed on SEDAR+.

Target 1 maiden resource:

• Indicated: 691,000 tonnes (t) at 5.43 g/t gold and 114 g/t silver for 121,000 ounces (oz) gold plus 2,538,000 oz silver;
• Inferred: 1,725,000 t at 4.55 g/t gold and 152 g/t silver for 252,000 oz gold plus 8,414,000 oz silver (using a cut-off grade of 2.0 g/t gold equivalent (AuEq));
• 28.6 per cent of the resource tonnage is classified as indicated.

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement, and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the competent person's findings are presented have not been materially modified from the original market announcement.

Mining study (conceptual) and metallurgical testwork support the development of the El Refugio-La Soledad resource with conventional underground mining methods indicated as being appropriate and with high gold-silver recovery to produce metal on site with conventional processing. The average vein width is approximately 4.5 metres.

Mithril is currently exploring in the Copalquin district to expand the resource footprint, demonstrating its multimillion-ounce gold and silver potential. Mithril has an exclusive option to purchase a 100-per-cent interest in the Copalquin mining concessions by paying $10-million (U.S.) on or any time before Aug. 7, 2028.

Qualified persons -- NI 43-101

Scientific and technical information in this report has been reviewed and approved by Mr. Skeet (FAusIMM, CP), Mithril's managing director and CEO. Mr. Skeet is a qualified person within the meaning of NI 43-101.

Samples are sent to ALS Global with sample preparation performed in Chihuahua City, Mexico, and assaying of sample pulps performed in North Vancouver, B.C., Canada.