-->

Mithril Reports 10.9 G/T Aueq (7.19 G/T Gold, 260 G/T Silver) Over 8.03m, Extending Target 1 Area By 300 Metres, At Copalquin, Mexico

Melbourne, Australia and Vancouver, Canada – TheNewswire - October 16, 2025 - Mithril Silver and Gold Limited ("Mithril” or the "Company") (TSXV: MSG) (ASX: MTH) (OTCQB: MTIRF) is pleased to provide exploration results and update for multiple targets at Mithril’s district scale Copalquin property, Durango State, Mexico.

Update Highlights

The current Copalquin resource lies within the Target 1 area, where recent drilling has successfully expanded the strike continuity by 300 metres, demonstrating strong potential for further growth.
- 7.20 m @ 2.78 g/t gold, 148 g/t silver from 260.9 m (MTH-RE25-44), including

2.05 m @ 7.41 g/t gold, 419 g/t silver from 266.05 m

2.80 m @ 3.97 g/t gold, 208 g/t silver from 272.35 m

- 8.03 m @ 7.19 g/t gold, 260 g/t silver from 257.72 m (MTH-RE25-45), including

4.40 m @ 9.87 g/t gold, 507 g/t silver from 260.7 m

The above intercepts extend the Target 1 strike over 30%

Target 5 drilling rapidly progressing with 11 drill holes now completed with assays pending for the first batch of holes in the laboratory. Ongoing channel sampling at Target 5 has significantly expanded the footprint of this target to 2 km x 2 km
Target 3 drill plan advancing to be drill ready in the coming months with addition of a third drill
District wide aerial magnetic survey commences later this month supporting district model drilling, designed to locate the conduit for the widespread gold and silver mineralisation across the vast Copalquin District
The mineralised horizon is currently expanded to over 1,300 metres vertical across 9 km (Santa Cruz to El Jarillal) in the southern half of the Copalquin district.

“Drilling at Target 1 continues to deliver strong results, confirming the western extension of the key district-scale east–west structure and expanding the strike length of the Target 1 area by more than 30%, with wide, high-grade intercepts throughout”, commented John Skeet, Managing Director & CEO. “Target 1 lies within the District Middle Section, which now extends over seven kilometres, linking multiple high-grade historic mines and numerous prospective structural features to be tested as part of Mithril’s fully funded 45,000-metre drill program.

At the large, silver-rich Target 5 area in the southern section, drilling has progressed rapidly with 11 holes completed and first assays pending. In parallel, our geological team is advancing the district-scale model, supported by an ongoing petrographic study and upcoming aerial magnetic survey, as we vector in on the conduit system responsible for the widespread high-grade gold and silver mineralisation across the Copalquin District. The defining hallmark of Copalquin remains its exceptional distribution of bonanza-grade gold and silver mineralisation throughout this 70 km² property.”

See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.

District Outlook

Mithril is fully funded to complete 45,000 metres of drilling over the next 12–14 months, with preparations to add a third drill rig by early 2026 at Target 3. Exploration, including drilling and detailed mapping, continues to advance across multiple targets, underpinning the district-scale potential of Copalquin. A closely spaced aerial magnetic survey will be flown late October 2025 and a petrographic fluid inclusion study on samples across the district is supporting the ongoing development of the district scale model for this large epithermal gold-silver system.

Target 1 resource expansion drilling is ongoing with a resource update pending upon completion of the current drill program. Drilling throughout 2025 has refined geologic interpretation and presented numerous target zones for drill testing.

Target 5 – Silver Rich in Southwest of Copalquin District – initial drilling continues around the Apomal historic mine in the Target 5 area, with the first 11 holes completed (assays pending) for an initial 5,000 metre program. Apomal is being tested down dip, below the old mine workings and along strike in the northwestern part of this large target area. This program marks the first drilling at Target 5 and is designed to test the mapped veins while stepping out into untested areas along strike and at depth.

Previously completed mapping and sampling at Target 5 has recently returned excellent results from surface and underground samples with the discovery of the historic La Lianas, Los Martires, Jarillal, and Tasolera Mines within the Target 5 area, which covers 2 km x 2 km

Target 3 – Preparing for 2025 Drilling - ongoing systematic mapping and sampling at Target 3 are further defining priority targets in this large prospective area, with maiden drilling set to commence in the coming months.

COPALQUIN GOLD-SILVER DISTRICT, DURANGO STATE, MEXICO

With 100 historic underground gold-silver mines and workings plus 198 surface workings/pits throughout 70km2 of mining concession area, Copalquin is an entire mining district with high-grade exploration results and a maiden JORC resource. To date there are several target areas in the district with one already hosting a high-grade gold-silver JORC mineral resource estimate (MRE) at the Target 1 area (El Refugio-La Soledad)1 and a NI 43-101 Technical Report filed on SEDAR+, supported by a conceptional underground mining study completed on the maiden resource in early 2022 and metallurgical test work (see ASX Announcement 25 February 2022). There is considerable strike and depth potential to increase the resource at El Refugio and at other target areas across the district, plus the underlying geologic system that is responsible for the widespread gold-silver mineralisation.

With the district-wide gold and silver occurrences and rapid exploration success, it is clear the Copalquin District is developing into another significant gold-silver district like the many other districts in this prolific Sierra Madre Gold-Silver Trend of Mexico.

Click Image To View Full Size

Figure 1 – Copalquin District location map, locations of mining and exploration activity and local infrastructure.

Click Image To View Full Size

Figure 2 LiDAR identified historic workings across the 70km2 district. Current drilling locations at Target 1 west and Target 5 (El Apomal), and recent drilling at Zaragoza mine in Target 1 south, high priority drill target area of La Constancia-El Jabali (Target 3). Several new areas highlighted across the district for follow-up work including recently sampled Target 6

Copalquin District Exploration Progress Update

Click Image To View Full Size

Figure 3 Property-wide channel sampling results for the middle and south district sections within ~50% of the 70 km2 mining concession area covering the Copalquin District

Target 1 Drilling Discussion

Target 1 resource expansion drilling successfully extended the east-west structure 300 m west giving a total strike length from of over 1,300 m (Table 1; Figure 4).

Table 1 Reported drill hole intervals

Drill Hole ID	From (m)	To (m)	Interval (m)	Au g/t	Ag g/t	Au Eq g/t
MTH-ZG25-40	431.6	433.1	1.5	0.298	59.1	1.14
MTH-ZG25-40	450.7	453.55	2.85	1.12	25.20	1.47
MTH-RE25-41	137	138.35	1.35	1.255	71.9	2.28
MTH-RE25-41	140.8	143.9	3.1	0.63	31.10	1.07
MTH-RE25-41	180.82	181.6	0.78	0.71	33.90	1.2
MTH-RE25-41	378.5	379	0.5	3.21	1.20	3.23
MTH-ZG25-42	No reportable intercepts
MTH-RE25-43	No reportable intercepts
MTH-RE25-44	260.9	268.1	7.20	2.78	148	4.89
Including	266.05	268.1	2.05	7.41	418.8	13.39
MTH-RE25-44	272.35	275.15	2.80	3.97	209.4	6.97
MTH-RE25-45	257.72	265.75	8.03	7.19	259.7	10.9
Including	260.7	265.1	4.40	9.87	506.8	15.43

Click Image To View Full Size

Figure 4 Target 1 Drill results in this announcement and showing the 300 metre extension west

Click Image To View Full Size

Figure 5 Cross section of holes MTH-RE25-44 and MTH-RE25-45 extending drilling 300 metres west at Target 1.

Table 2 Drill hole collar details reported in this announcement

Hole ID	Zone	Easting	Northing	Elevation	Azimuth	Inclination	Depth
MTH-ZG25-40	Zaragoza	289965	2823484	996.8	221	-53	474
MTH-RE25-41	Refugio	289079	2823785	1155.77	225	-48	411
MTH-ZG25-42	Zaragoza	290030	2823410	1000.27	212	-45	399
MTH-RE25-43	Refugio	289066	2824050	1178.85	208	-75	600
MTH-RE25-44	Refugio	288654	2823892	1177.09	200	-70	378
MTH-RE25-45	Refugio	288654	2823892	1177.09	215	-66	384

ABOUT THE COPALQUIN GOLD SILVER PROJECT

The Copalquin mining district is located in Durango State, Mexico and covers an entire mining district of 70km2 containing several dozen historic gold and silver mines and workings, ten 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 mineralisation 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 demonstrating the high-grade gold and silver resource potential for the district. This maiden resource is detailed below (see ASX release 17 November 2021)^ and a NI 43-101 Technical Report filed on SEDAR+

Indicated 691 kt @5.43 g/t gold, 114 g/t silver for 121,000 oz gold plus 2,538,000 oz silver
Inferred 1,725 kt @4.55 g/t gold, 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 AuEq*)

28.6% of the resource tonnage is classified as indicated

Table 33 Mineral resource estimate El Refugio – La Soledad using a cut-off grade of 2.0 g/t AuEq*

	Tonnes (kt)	Tonnes (kt)	Gold (g/t)	Silver (g/t)	Gold Eq.* (g/t)	Gold (koz)	Silver (koz)	Gold Eq.* (koz)
El Refugio	Indicated	691	5.43	114.2	7.06	121	2,538	157
	Inferred	1,447	4.63	137.1	6.59	215	6,377	307
La Soledad	Indicated	-	-	-	-	-	-	-
	Inferred	278	4.12	228.2	7.38	37	2,037	66
Total	Indicated	691	5.43	114.2	7.06	121	2,538	157
	Inferred	1,725	4.55	151.7	6.72	252	8,414	372

* In determining the gold equivalent (AuEq.) grade for reporting, a gold:silver price ratio of 70:1 was determined, using the formula: AuEq grade = Au grade + ((silver grade/70) x (silver recovery/Au recovery)). The metal prices used to determine the 70:1 ratio are the cumulative average prices for 2021: gold USD1,798.34 and silver: USD25.32 (actual is 71:1) from kitco.com. At this early stage, the metallurgical recoveries were assumed to be equal (93%). Subsequent preliminary metallurgical test work produced recoveries of 91% for silver and 96% for gold (ASX Announcement 25 February 2022) and these will be used when the resource is updated in the future. In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold.

^ The information in this report that relates to Mineral Resources or Ore Reserves is based on information provided in the following ASX announcement: 17 Nov 2021 - MAIDEN JORC RESOURCE 529,000 OUNCES @ 6.81G/T (AuEq*), which includes the full JORC MRE report, also available on the Mithril Resources Limited Website.

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 test work supports 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 multi-million-ounce gold and silver potential. Mithril has an exclusive option to purchase 100% interest in the Copalquin mining concessions by paying US$10M on or any time before 7 August 2028.

-ENDS-

Released with the authority of the Board.

For further information contact:

John Skeet

Managing Director and CEO

jskeet@mithrilsilvergold.com

+61 435 766 809

NIKLI COMMUNICATIONS

Corporate Communications

liz@mithrilsilvergold.com

nicole@mithrilsilvergold.com

The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Competent Persons Statement - JORC

The information in this announcement that relates to metallurgical test results, mineral processing and project development and study work has been compiled by Mr John Skeet who is Mithril’s CEO and Managing Director. Mr Skeet is a Fellow of the Australasian Institute of Mining and Metallurgy. This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.

Mr Skeet has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Skeet consents to the inclusion in this report of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

The information in this announcement that relates to sampling techniques and data, exploration results and geological interpretation for Mithril’s Mexican project, has been compiled by Mr Darren LeFort who is Mithril’s Exploration Manager. Mr LeFort is a member of the Engineers and Geoscientists of British Columbia and a Certified Professional Geologist (P.Geo). This is a Recognised Professional Organisation (RPO) under the Joint Ore Reserves Committee (JORC) Code.

Mr LeFort has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. MrLeFort consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The information in this announcement that relates to Mineral Resources is reported by Mr Rodney Webster, former Principal Geologist at AMC Consultants Pty Ltd (AMC), who is a Member of the Australian Institute of Geoscientists. The report was peer reviewed by Andrew Proudman, Principal Consultant at AMC. Mr Webster is acting as the Competent Person, as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, for the reporting of the Mineral Resource estimate. A site visit was carried out by Jose Olmedo a geological consultant with AMC, in September 2021 to observe the drilling, logging, sampling and assay database. Mr Webster consents to the inclusion in this report of the matters based on information in the form and context in which it appears

Qualified Persons – NI 43-101

Scientific and technical information in this Report has been reviewed and approved by Mr John Skeet (FAUSIMM, CP) Mithril’s Managing Director and Chief Executive Officer. Mr John 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, BC, Canada.

Table 3 Drill hole intervals of greater than or equal to 0.1 g/t Au Eq

Hole ID	Sample ID	From (m)	To (m)	Interval (m)	Au g/t	Ag g/t	AuEq g/t
MTH-ZG25-40	826483	385.76	386.3	0.54	0.025	7.5	0.13
MTH-ZG25-40	826498	405.5	406.55	1.05	0.015	6.3	0.11
MTH-ZG25-40	826516	425.45	426.6	1.15	0.059	3.8	0.11
MTH-ZG25-40	826517	426.6	427.45	0.85	0.042	4.8	0.11
MTH-ZG25-40	826518	427.45	427.95	0.5	0.074	5.2	0.15
MTH-ZG25-40	826521	428.45	429.53	1.08	0.037	8.9	0.16
MTH-ZG25-40	826522	429.53	430.5	0.97	0.074	8.5	0.2
MTH-ZG25-40	826523	430.5	431.08	0.58	0.057	5.9	0.14
MTH-ZG25-40	826524	431.08	431.6	0.52	0.071	36.3	0.59
MTH-ZG25-40	826526	431.6	433.1	1.5	0.298	59.1	1.14
MTH-ZG25-40	826527	433.1	434.32	1.22	0.06	10.6	0.21
MTH-ZG25-40	826538	450.7	451.53	0.83	2.67	38.1	3.21
MTH-ZG25-40	826539	451.53	452.3	0.77	0.189	12.8	0.37
MTH-ZG25-40	826541	452.3	453.55	1.25	0.655	24.4	1
MTH-RE25-41	821128	133	135	2	0.057	3.9	0.11
MTH-RE25-41	821129	135	136.4	1.4	0.419	13.8	0.62
MTH-RE25-41	821130	136.4	137	0.6	0.131	7.9	0.24
MTH-RE25-41	821131	137	138.35	1.35	1.255	71.9	2.28
MTH-RE25-41	821132	138.35	139.5	1.15	0.089	4.6	0.15
MTH-RE25-41	821133	139.5	140.8	1.3	0.264	5.1	0.34
MTH-RE25-41	821134	140.8	141.83	1.03	0.963	54.6	1.74
MTH-RE25-41	821135	141.83	142.33	0.5	0.773	39.3	1.33
MTH-RE25-41	821136	142.33	143.3	0.97	0.117	5	0.19
MTH-RE25-41	821137	143.3	143.9	0.6	0.745	26	1.12
MTH-RE25-41	821143	149.16	150.12	0.96	0.198	2.6	0.24
MTH-RE25-41	821145	151.17	151.67	0.5	0.272	4.6	0.34
MTH-RE25-41	821146	151.67	152.45	0.78	0.115	2.1	0.15
MTH-RE25-41	821147	152.45	153.1	0.65	0.328	2.1	0.36
MTH-RE25-41	821148	153.1	153.9	0.8	0.137	2.5	0.17
MTH-RE25-41	821152	155.2	156.1	0.9	0.421	7.1	0.52
MTH-RE25-41	821153	156.1	156.88	0.78	0.517	12.2	0.69
MTH-RE25-41	821154	156.88	157.75	0.87	0.098	1.8	0.12
MTH-RE25-41	821155	157.75	158.72	0.97	0.182	3.5	0.23
MTH-RE25-41	821156	158.72	159.32	0.6	0.08	1.9	0.11
MTH-RE25-41	821158	160.75	162.15	1.4	0.122	2.1	0.15
MTH-RE25-41	821160	163.3	164.6	1.3	0.107	2.1	0.14
MTH-RE25-41	821161	164.6	165.3	0.7	0.103	1.9	0.13
MTH-RE25-41	821163	166.4	167.15	0.75	0.102	3.1	0.15
MTH-RE25-41	821166	169.2	170.17	0.97	0.078	4	0.14
MTH-RE25-41	821167	170.17	171.15	0.98	0.158	5.1	0.23
MTH-RE25-41	821168	171.15	172.04	0.89	0.104	5.8	0.19
MTH-RE25-41	821169	172.04	172.75	0.71	0.171	5.8	0.25
MTH-RE25-41	821173	176.33	178	1.67	0.042	3.8	0.1
MTH-RE25-41	821177	180.82	181.6	0.78	0.713	33.9	1.2
MTH-RE25-41	821213	282.5	283	0.5	0.165	9.1	0.3
MTH-RE25-41	821214	283	283.5	0.5	0.075	3.3	0.12
MTH-RE25-41	821218	286.9	288.2	1.3	0.115	1.2	0.13
MTH-RE25-41	821238	304.75	305.45	0.7	0.258	9.3	0.39
MTH-RE25-41	821244	312.5	314	1.5	0.075	1.6	0.1
MTH-RE25-41	821296	377.5	378.5	1	0.27	0.6	0.28
MTH-RE25-41	821297	378.5	379	0.5	3.21	1.2	3.23
MTH-ZG25-42	826570	181.7	183	1.3	0.138	1.2	0.16
MTH-ZG25-42	826584	214.9	215.45	0.55	0.088	3.2	0.13
MTH-ZG25-42	826586	216.2	217.3	1.1	0.19	7.6	0.3
MTH-ZG25-42	826598	228.4	228.9	0.5	0.023	6.1	0.11
MTH-ZG25-42	826645	303	304.5	1.5	0.17	1.5	0.19
MTH-RE25-43	821337	467.62	468.8	1.18	0.021	6.1	0.11
MTH-RE25-43	821338	468.8	469.85	1.05	0.055	8.3	0.17
MTH-RE25-43	821339	469.85	470.35	0.5	0.099	10.3	0.25
MTH-RE25-43	821340	470.35	471	0.65	0.028	5.1	0.1
MTH-RE25-43	821341	471	472	1	0.034	4.7	0.1
MTH-RE25-44	821356	260.9	261.45	0.55	0.242	12	0.41
MTH-RE25-44	821357	261.45	262.15	0.7	0.847	40.8	1.43
MTH-RE25-44	821358	262.15	263	0.85	1.05	60.2	1.91
MTH-RE25-44	821359	263	263.82	0.82	1.805	69.8	2.8
MTH-RE25-44	821360	263.82	264.35	0.53	0.838	16.8	1.08
MTH-RE25-44	821361	264.35	265	0.65	0.932	33.6	1.41
MTH-RE25-44	821362	265	266.05	1.05	0.677	31.1	1.12
MTH-RE25-44	821363	266.05	266.55	0.5	2.07	66.9	3.03
MTH-RE25-44	821364	266.55	267.5	0.95	7.79	393	13.4
MTH-RE25-44	821365	267.5	268.1	0.6	11.25	753	22.01
MTH-RE25-44	821366	268.1	269.1	1	0.288	21.7	0.6
MTH-RE25-44	821367	269.1	270.55	1.45	0.154	18	0.41
MTH-RE25-44	821368	270.55	271.75	1.2	0.056	3.5	0.11
MTH-RE25-44	821369	271.75	272.35	0.6	0.36	23.7	0.7
MTH-RE25-44	821370	272.35	273.5	1.15	6.19	300	10.48
MTH-RE25-44	821371	273.5	274	0.5	0.83	37.7	1.37
MTH-RE25-44	821372	274	274.5	0.5	4.13	276	8.07
MTH-RE25-44	821373	274.5	275.15	0.65	2.34	130	4.2
MTH-RE25-44	821374	275.15	276.12	0.97	0.045	6.1	0.13
MTH-RE25-44	821383	286.65	288	1.35	0.076	4.6	0.14
MTH-RE25-44	821391	294.23	294.73	0.5	0.136	18.1	0.39

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representativity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Drill core samples are cut lengthwise with a diamond saw. Intervals are nominally 1 m but may vary between 0.5 m to 1.5 m based on geologic criteria. The same side of the core is always sent to sample (left side of saw). Reported intercepts are calculated as either potentially underground mineable (100m down hole) or as potentially open-pit mineable (near surface). Potentially underground mineable intercepts are calculated as length weighted averages of material greater than or equal to 1 g/t AuEQ_70 allowing up to 2m of internal dilution. Potentially open-pit mineable intercepts are calculated as length weighted averages of material greater than or equal to 0.25 g/t AuEQ_70 allowing for up to 2m of internal dilution. Rock Sawn Channel samples underground and surface are collected with the assistance of a handheld portable saw. The channels are 2.5 to 3cm deep and 6-8 cm wide along continuous lines oriented perpendicular to the mineralized structure. The samples are as representative as possible Rock Sawn Channel surface samples were surveyed with a Handheld GPS then permanently mark with an aluminium tag and red colour spray across the strike of the outcrop over 1 metre. Samples are as representative as possible Rock Sawn Channel underground samples were located after a compass and tape with the mine working having a surveyed control point at the portal, then permanently marked with an aluminium tag and red colour spray oriented perpendicular to the mineralized structure. Samples are as representative as possible Soil sampling has been carried out by locating pre-planned points by handheld GPS and digging to below the first colour-change in the soil (or a maximum of 50 cm). In the arid environment there is a 1 – 10 cm organic horizon and a 10 – 30 cm B horizon above the regolith. Samples are sieved to -80 mesh in the field. Samples are collected on a 20 m x 50 m grid or every 20 m on N–S lines 50 m apart. These samples are considered representative of the medium being sampled and lines are appropriately oriented to the nearly E–W structural trend.
Drilling techniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	Drilling is done with MP500 man-portable core rigs capable of drilling HQ size core to depths of 350-400m (depending on ground conditions), reducing to NQ size core for greater depths. Core is recovered in a standard tube.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Drill recovery is measured based on measured length of core divided by length of drill run. Recovery in holes CDH-001 through CDH-025 and holes CDH-032 through CDH-077 was always above 90% in the mineralized zones. Detailed core recovery data are maintained in the project database. Holes CDH-026 through CDH-031 had problems with core recovery in highly fractured, clay rich breccia zones. There is no adverse relationship between recovery and grade identified to date.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.	Geotechnical and geological logging of the drill core takes place on racks in the company core shed. Core samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Core logging is both qualitative or quantitative in nature. Photos are taken of each box of core before samples are cut. Photos of cut core intervals are taken after sampling. Core is wetted to improve visibility of features in the photos. All core has been logged and photographed. Rock sawn channel samples are marked, measured and photographed at location Soil samples are recorded at location, logged and described
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representativity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.	Core is sawn and half core is taken for sample. Samples are prepared using ALS Minerals Prep-31 crushing, splitting and pulverizing. This is appropriate for the type of deposit being explored. Visual review to assure that the cut core is ½ of the core is performed to assure representativity of samples. Crushed core duplicates are split/collected by the laboratory and submitted for assay (1 in 30 samples) Sample sizes are appropriate to the grain size of the material being sampled. Rock sawn channel samples and soil samples are prepared using ALS Minerals Prep-31 crushing, splitting and pulverizing. This is appropriate for the type of deposit being explored.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Samples are assayed for gold using ALS Minerals Au-AA25 method a 30 g fire assay with an AA finish. This is considered a total assay technique. Samples are assayed for silver using ALS Minerals ME-ICP61 method. Over limits are assayed by silverOG63 and silverGRAV21. These are considered a total assay technique. Standards and blanks are inserted at a rate of one per every 25 samples and one per every 40 samples, respectively. Pulp duplicate sampling is undertaken for 3% of all samples (see above). External laboratory checks will be conducted as sufficient samples are collected. Levels of accuracy (ie lack of bias) and precision have not yet been established. Certified Reference Materials – Rock Labs and CDN CRMs have been used throughout the project including, low (~2 g/t Au), medium (~9 g/t Au) and high (~18g/t Au and ~40 g/t Au). Results are automatically checked on data import into the BEDROCK database to fall within 2 standard deviations of the expected value. Samples with significant amounts of observed visible gold are also assayed by AuSCR21, a screen assay that analyses gold in both the milled pulp and in the residual oversize from pulverization. This has been done for holes CDH-075 and CDH-077.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.	The verification of significant intersections by either independent or alternative company personnel has not been conducted. A re-assay program of pulp duplicates is currently in progress. MTH has drilled one twin hole. Hole CDH-072, reported in the 15/6/2021 announcement, is a twin of holes EC-002 and UC-03. Results are comparable. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols are maintained in the company’s core facility. Assay data have not been adjusted other than applying length weighted averages to reported intercepts.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.	Drill collar coordinates are currently located by handheld GPS. Precise survey of hole locations is planned. Downhole surveys of hole deviation are recorded using a Reflex Multishot tool for all holes. A survey measurement is first collected at 15 meters downhole, and then every 50 meters until the end of the hole. Locations for holes CDH-001 through CDH-048 and CDH-051 through CDH-148 have been surveyed with differential GPS to a sub 10 cm precision. Hole CDH-005 was not surveyed UTM/UPS WGS 84 zone 13 N High quality topographic control from LiDAR imagery and orthophotos covers the entire project area.
Data spacing and distribution	Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied.	Data spacing is appropriate for the reporting of Exploration Results. The Resource estimation re-printed in this announcement was originally released on 17 Nov 2021 No sample compositing has been applied.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	Cut lines are marked on the core by the geologists to assure that the orientation of sampling achieves unbiased sampling of possible structures. This is reasonably well observed in the core and is appropriate to the deposit type. The relationship between the drilling orientation and the orientation of key mineralised structures is not considered to have introduced a sampling bias. Rock sawn channel samples are cut perpendicular to the observed vein orientation wherever possible
Sample security	The measures taken to ensure sample security.	Samples are stored in a secure core storage facility until they are shipped off site by small aircraft and delivered directly to ALS Global sample preparation facility in Chihuahua, Mexico. ALS airfreights the sample pulps to their assaying facility in North Vancouver, BC, Canada
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	A review with spot checks was conducted by AMC in conjunction with the resource estimate published 17 Nov 2021. Results were satisfactory to AMC.

Section 2 Reporting of Exploration Results

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Concessions at Copalquin

No.	Concession	Concession Title number	Area (Ha)	Location
1	LA SOLEDAD	52033	6	Tamazula, Durango, Mexico
2	EL COMETA	164869	36	Tamazula, Durango, Mexico
3	SAN MANUEL	165451	36	Tamazula, Durango, Mexico
4	COPALQUIN	178014	20	Tamazula, Durango, Mexico
5	EL SOL	236130	6,000	Tamazula, Durango and Badiraguato, Sinaloa, México
6	EL CORRAL	236131	907.3243	Tamazula, Durango and Badiraguato, Sinaloa, México

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Previous exploration by Bell Coast Capital Corp. and UC Resources was done in the late 1990’s and in 2005 – 2007. Work done by these companies is historic and non-JORC compliant. Mithril uses these historic data only as a general guide and will not incorporate work done by these companies in resource modelling.
Work done by the Mexican government and by IMMSA and will be used for modelling of historic mine workings which are now inaccessible (void model)

Geology

Deposit type, geological setting and style of mineralisation.

Copalquin is a low sulfidation epithermal gold-silver deposit hosted in andesite. This deposit type is common in the Sierra Madre Occidental of Mexico and is characterized by quartz veins and stockworks surrounded by haloes of argillic (illite/smectite) alteration. Veins have formed as both low-angle semi-continuous lenses parallel to the contact between granodiorite and andesite and as tabular veins in high-angle normal faults. Vein and breccia thickness has been observed up to 30 meters wide with average widths on the order of 3 to 5 meters. The overall strike length of the semi-continuous mineralized zone from El Gallo to Refugio, Cometa, Los Pinos, Los Reyes, La Montura to Constancia and Santa Cruz is almost 7 kilometres. The southern area from south west of Apomal to San Manuel and to Las Brujas-El Peru provides additional exploration potential up to 6km.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
easting and northing of the drill hole collar
• elevation or RL (Reduced Level – elevation above
sea level in metres) of the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

See Table 2 in the announcement.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated.

Potentially underground mineable intercepts are calculated as length weighted averages of material greater than or equal to 1 g/t AuEQ_70 allowing up to 2m of internal dilution.
Potentially open-pit mineable intercepts are calculated as length weighted averages of material greater than or equal to 0.25 g/t AuEQ_70 allowing for up to 2m of internal dilution.
No upper cut-off is applied to reporting intercepts.
Length weighted averaging is used to report intercepts. The example of CDH-002 is shown. The line of zero assays is a standard which was removed from reporting.

Au Raw	silver raw	Length (m)	Au *length	silver *length
7.51	678	0.5	3.755	339
11.85	425	0.55	6.5175	233.75
0	0	0	0	0
0.306	16	1	0.306	16
0.364	31.7	1	0.364	31.7
3.15	241	0.5	1.575	120.5
10.7	709	0.5	5.35	354.5
15.6	773	0.5	7.8	386.5
					From	To	Length	Au gpt	silver gpt
		4.55	25.667	1481.9	91.95	96.5	4.55	5.64	325.7

In determining the gold equivalent (AuEq.) grade for reporting, a gold:silver price ratio of 70:1 was determined, using the formula: AuEq grade = Au grade + ((silver grade/70) x (silver recovery/Au recovery)). The metal prices used to determine the 70:1 ratio are the cumulative average prices for 2021: gold USD1,798.34 and silver: USD25.32 (actual is 71:1) from kitco.com At this early stage, the metallurgical recoveries are assumed to be equal (93%), Subsequent preliminary metallurgical test work produced recoveries of 91% for silver and 96% for gold (ASX Announcement 25 February 2022).
For Rock Saw Channel Sampling and soil sampling in the Copalquin District, silver equivalent (AgEq) is determined using the formula: AgEq grade = silver grade + ((Au grade x 70) x (Au recovery/silver recovery)). The metal prices used to determine the 70:1 ratio are the cumulative average prices for 2021: gold USD1,798.34 and silver: USD25.32 (actual is 71:1) fromkitco.com At this early stage, the metallurgical recoveries for Au and silver are assumed to be equal (93%) in the absence of metallurgical test work for Targets 2, 3, 4 and 5 material. In the Company’s opinion there is reasonable potential for both gold and silver to be extracted and sold.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

True widths at Refugio between sections 120 and 1,000 vary according to the hole’s dip. Holes drilled at -50 degrees may be considered to have intercept lengths equal to true-widths, Holes drilled at -70 degrees had true widths approximately 92% of the reported intercept lengths and holes drilled at -90 degrees had true widths of 77% of the reported intercept lengths.
True widths at La Soledad are not fully understood and downhole intercepts to date, are reported.
At Las Brujas in Target 2, true widths are not yet known since we are still in the early stages of target definition.
Rock sawn channel samples are cut perpendicular to the observed vein orientation wherever possible

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

See figures in announcement

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

All exploration results are reported for intercepts greater than or equal to 0.1 g/t gold equivalent (gold plus silver at 70:1 price ratio for gold:silver).

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

No additional exploration data are substantive at this time.
Metallurgical test work on drill core composite made of crushed drill core from the El Refugio drill hole samples has been conducted.
The samples used for the test work are representative of the material that makes up the majority of the Maiden Resource Estimate for El Refugio release on 17th November 2021.
The test work was conducted by SGS laboratory Mexico using standard reagents and test equipment.

Further work

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

The Company drilled 148 diamond core holes from July 2020 to July 2022 for 32,712 m. The Company has stated its target to drill 40,000m from June 2024 until the end of 2025.
Diagrams are included in the announcements and presentations showing the drill target areas within the Copalquin District

1 See ‘About Copalquin Gold Silver Project’ section for JORC MRE details and AuEq. calculation.

Archive

Mithril Reports 10.9 G/T Aueq (7.19 G/T Gold, 260 G/T Silver) Over 8.03m, Extending Target 1 Area By 300 Metres, At Copalquin, Mexico