Mr. Kit Marrs reports

ALASKA SILVER ANNOUNCES PLAN FOR DEFERRED MANAGEMENT FEES TRANSACTION

Alaska Silver Corp. has entered into agreements to settle $1,237,962 in outstanding management fee debt through the issuance of an aggregate of 1,509,710 common shares of the company at a price of 82 cents per common share.

This settlement transaction represents deferred management fees owed to the company's president and chief executive officer, Christopher (Kit) Marrs, its vice-president, administration, Joan Marrs, and its chief exploration officer, Joe Piekenbrock, which accrued pursuant to employment and consulting agreements between the company and the creditors between 2023 and 2025 (in the case of Mr. Marrs and Ms. Marrs) and from 2022 to present (in the case of Mr. Piekenbrock).

The company's board of directors and management believe that completing the debt settlement by issuing shares is in the best interests of the company as it will allow the company to preserve its cash resources for continuing and planned operations.

Mr. Marrs stated: "We are very happy with this proposal to tighten up our balance sheet and remove this debt that has built up since 2022. Joan, Joe and I consciously deferred our compensation when times were tough because we wanted to prioritize cash for drilling and advancing our project and ultimately increasing shareholder value."

Completion of the debt settlement remains subject to receipt of all necessary regulatory approvals, including acceptance by the TSX Venture Exchange and the approval of disinterested shareholders of the company. The company will be seeking disinterested shareholder approval of the debt settlement at its annual general and special meeting of shareholders to be held on June 19, 2026. For the purposes of the resolution to approve the debt settlement, all of the common shares beneficially owned by the creditors, including their associates and affiliates (as those terms are defined under the policies of the exchange), will not be entitled to vote on the resolution to approve the debt settlement.

The settlement shares will be subject to a four-month hold period from the date of issuance in accordance with applicable Canadian securities laws in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside of Canada.

Multilateral Instrument 61-101 matters

The debt settlement is considered to be a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 in reliance on Section 5.5(b) of MI 61-101 as the company is not listed on a specified market within the meaning of MI 61-101. Additionally, the debt settlement is exempt from the minority approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(1)(a) of MI 61-101 insofar as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the settlement shares issuable to the creditors exceeds 25 per cent of the company's market capitalization.

Grant of stock options

In addition, the company announces that it has granted 100,000 stock options to an officer pursuant to its long-term incentive plan. The grants were made in accordance with the company's compensation policy. Each stock option is exercisable at 82 cents per share for a term of five years.

About Alaska Silver Corp.

Alaska Silver is a junior exploration company focused on the discovery and development of high-grade silver, gold and critical metal assets within one of North America's major high-grade silver and critical mineral districts at its Illinois Creek project in western Alaska. Illinois Creek is a contiguous, 100-per-cent-owned land package totalling 80,895 acres (126.4 square miles or 32,337 hectares) anchored by two resource-level mineralization zones separated by eight kilometres of high-potential exploration ground. At one end lies the high-grade silver mineralization at the Waterpump Creek zone, which hosts an inferred mineral resource of 75 million ounces silver equivalent at a grade of 279 g/t silver, 11.28 per cent zinc and 9.87 per cent lead that remains open to the north and south, as well as by the Illinois Creek mine. At the western end is the historical past-producing Illinois Creek mine that closed due to low metal prices leaving untouched indicated mineral resources of 260,000 ounces gold at 0.92 g/t Au and 8.3 Moz silver at 29.72 g/t Ag, along with inferred mineral resources of 290,000 oz gold at 0.84 g/t Au and 10.4 Moz silver at 30.11 g/t Ag. The IC project is located approximately 38 kilometres from the Yukon River, the region's primary marine transportation corridor. Headquartered in Alaska and Arizona, Alaska Silver is led by a team with a proven record of large-scale mine discoveries.

Qualified person

Patrick Donnelly, PGeo, executive vice-president of Alaska Silver, a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this news release.

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