Mithril Silver & Gold Builds Momentum at Copalquin with Third Drill Mobilization and Expanded 2026 Exploration Program

(TheNewswire)

Melbourne, Australia and Vancouver,Canada – TheNewswire- December 22, 2025 -Mithril Silver and Gold Limited("Mithril” or the "Company") (TSXV: MSG) (ASX: MTH)(OTCQB: MTIRF) is pleased to provide anexploration update at its 100%-owned Copalquin District gold-silverproject in Durango State, Mexico, including the mobilization of athird drill rig, an update on ongoing drilling activities, and asummary of exploration momentum heading into 2026.

Drilling Update – CopalquinDistrict - Three drills will be turning at Copalquin in 2026

Target 3 drilling will commence in the first week ofJanuary 2026, after the Christmas break. The first phase of the maidendrill programme at Target 3 consists of 3,300 metres and drilling willcommence near the El Jabali historic workings where recent channelsampling returned results of up to 0.65 m @ 16 g/t gold and 1,275 g/tsilver.1 Target3 is a large area with significant historic mining activity.

Target 1 drilling progressed throughout 2025 producinga robust and predictive model ahead of a new resource estimation atthis target in 2026.  Further drilling will test along strike fromthe recent western step-out hole that returned 8.03 m @ 7.19 g/t gold, 260 g/tsilver (MTH-RE25-45)2.  Approximately 3,000 metres will be drilled at Target inQ1 2026 ahead of the resource update.

The Target 5 maiden drill programme has tested thestructures around the historic Apomal workings producing excellentresults from the first holes returning 2.75 m @ 2.28 g/t gold, 500 g/tsilver (AP25-003), including 1.00 m @ 5.80 g/t gold, 1,308 g/tsilver and 3.35 m @ 1.71 g/t gold, 246 g/t silver (AP25-005), including 1.05 m @ 5.35 g/t gold, 771 g/t silver3

At Target 5, drilling has progressed along strike withfive holes completed at the Tasolera workings (assays pending) wherechannel sampling reported up to 3,300 g/t silver and 2.00 g/t gold over 1.40 m4.  Drilling in 2026will test further along strike at the Candelaria workings with up to0.60 m @ 38.3 g/t gold, 4,520g/t silver in channel sampling1.

Assay Update

The Company continues to experience significant delaysat its external assay laboratory which has persisted throughout thesecond half of 2025.  Final assay results are currently pending forapproximately 20 drill holes, with an additional 12 drill holesdispatched to the laboratory over the past two weeks. Drilling resultsat Targets 1 and 5 will be reported upon receipt and compilation ofthe pending assays.

Regional Exploration

At the recently acquired La Dura concession area (20km2), LiDAR surveying has been completed, with interpretationand analysis due early 2026. In addition, the Company is scheduled tofly a district-scale aerial magnetic survey over both the Copalquinand La Dura concession areas in January 2026, aimed at refiningstructural interpretations, identifying new targets, and supportingcontinued district-scale exploration work.

Year-End Reflection

As 2025 comes to a close, Mithril has completed a yearof significant exploration progress at the Copalquin District,advancing multiple targets in parallel and reinforcing the scale andcontinuity of a high-grade, district-scale gold-silver system. Successat Target 1, the emergence of Target 5, and the advancement of Target3 to drill-ready status have positioned the Company for continuedgrowth.

“The work completed in 2025 hassignificantly expanded the potential of the Copalquin District andconfirmed the presence of a large, vertically extensive epithermalgold-silver system,” said John Skeet, CEO& Managing Director. “With a strong balance sheet, multiple targets advancing within adistrict scale property, andan expanded land position, we are entering 2026 with momentum and aclear pathway to unlock further value for shareholders.”

2026 Outlook

Mithril is advancing toward an aggressive explorationprogram in 2026, with 25,000 metres of drilling planned and up tothree drills turning during the first half of the year across theCopalquin District. Upcoming work will focus on expanding knownmineralized zones, testing new high-priority targets, integratingdistrict-wide geophysical data, and continuing to advance theCompany’s district-scale exploration thesis.

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Figure 1 Mithril’sCopalquin and La Dura property locations in Durango State, Mexico

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Figure 1 LiDARidentified historic workings across the 70km2 district. Currentdrilling locations at Target 1 west and Target 5 (El Apomal), andrecent drilling at Zaragoza mine in Target 1 south, high prioritydrill target area of La Constancia-El Jabali (Target 3).  Several newareas highlighted across the district for follow-up work includingrecently sampled Target 6

ABOUT THE COPALQUIN GOLD SILVERPROJECT

The Copalquin mining district is located in DurangoState, Mexico and covers an entire mining district of 70km2 containingseveral dozen historic gold and silver mines and workings, ten ofwhich had notable production. The district is within the Sierra MadreGold Silver Trend which extends north-south along the western side ofMexico and hosts many gold and silver districts.

Multiple mineralisation events, young intrusivesthought to be system-driving heat sources, widespread alterationtogether with extensive surface vein exposures and dozens of historicmine workings, identify the Copalquin mining district as a majorepithermal centre for Gold and Silver.

Within 15 months of drilling in the Copalquin District,Mithril delivered a maiden JORC mineral resource estimate at the firstof several target areas (Target 1), demonstrating the high-grade goldand silver resource potential for the district. This maiden resourceis detailed below (see ASX release 17November 2021)^ and a NI 43-101Technical Report filed on SEDAR+

Target 1 Maiden Resource:

• Indicated 691 kt @5.43 g/t gold, 114 g/t silver for 121,000 oz gold plus2,538,000 oz silver 

• Inferred 1,725 kt @4.55 g/t gold, 152 g/t silver for 252,000 oz gold plus8,414,000 oz silver 

(using a cut-off grade of 2.0 g/tAuEq*)

• 28.6% of the resource tonnage isclassified as indicated 

Table 1 Mineral resource estimateat Target 1 El Refugio – La Soledad using a cut-off grade of 2.0 g/tAuEq*

*  In determining the gold equivalent (AuEq.) gradefor reporting, a gold:silver price ratio of 70:1 was determined, usingthe formula: AuEq grade = Au grade + ((Ag grade/70) x (Ag recovery/Aurecovery)). The metal prices used to determine the 70:1 ratio are thecumulative average prices for 2021: gold USD1,798.34 and silver:USD25.32 (actual is 71:1) from kitco.com.  

For silver equivalent (AgEq.) grade reporting, the samefactors as above are used with the formula AgEq grade = Ag grade +((Au grade x 70) x (Au recovery/Ag recovery))

At this early stage, the metallurgical recoveries wereassumed to be equal (93%). Subsequent preliminary metallurgical testwork produced recoveries of 91% for silver and 96% for gold (ASXAnnouncement 25 February 2022) and these will be used when theresource is updated in the future.   In the Company’s opinionthere is reasonable potential for both gold and silver to be extractedand sold.

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

The Company confirms that it is not aware of any newinformation or data that materially affects the information includedin the original market announcement and that all material assumptionsand technical parameters underpinning the estimates in the relevantmarket announcement continue to apply and have not materially changed.The company confirms that the form and context in which the CompetentPerson’s findings are presented have not been materially modifiedfrom the original market announcement.

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

Mithril is currently exploring in the CopalquinDistrict to expand the resource footprint, demonstrating itsmulti-million-ounce gold and silver potential.  Mithril has an exclusive option to purchase 100% interest in the Copalquin mining concessions by paying US$10Mon or any time before 7 August 2028.

-ENDS-

Released with the authority of the Board.

For further information contact:

The Australian Securities Exchange has not reviewed anddoes not accept responsibility for the accuracy or adequacy of thisrelease.

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

Competent Persons Statement -JORC

The information in this announcement that relates tometallurgical test results, mineral processing and project developmentand study work has been compiled by Mr John Skeet who is Mithril’sCEO and Managing Director. Mr Skeet is a Fellow of the AustralasianInstitute of Mining and Metallurgy. This is a Recognised ProfessionalOrganisation (RPO) under the Joint Ore Reserves Committee (JORC)Code.

Mr Skeet has sufficient experience of relevance to thestyles of mineralisation and the types of deposits underconsideration, and to the activities undertaken, to qualify as aCompetent Person as defined in the 2012 Edition of the Joint OreReserves Committee (JORC) Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves. Mr Skeetconsents to the inclusion in this report of the matters based oninformation in the form and context in which it appears. TheAustralian Securities Exchange has not reviewed and does not acceptresponsibility for the accuracy or adequacy of this release.

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

 Mr LeFort has sufficient experience of relevance tothe styles of mineralisation and the types of deposits underconsideration, and to the activities undertaken, to qualify as aCompetent Person as defined in the 2012 Edition of the Joint OreReserves Committee (JORC) Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves. Mr LeFortconsents to the inclusion in this report of the matters based oninformation in the form and context in which it appears.

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

Qualified Persons – NI43-101

Scientific and technical information in this Report hasbeen reviewed and approved by Mr John Skeet (FAUSIMM, CP) Mithril’sManaging Director and Chief Executive Officer. Mr John Skeet is aqualified person within the meaning of NI 43-101.

Samples are sent to ALS Global with sample preparationperformed in Chihuahua City, Mexico and assaying of sample pulpsperformed in North Vancouver, BC, Canada

1 See ASX Announcement 01 Dec 2025 Exploration Sampling up to4,520 g/t Silver, 38.2 g/t Gold

2 See ASX Announcement 16 Oct 2025 300 Metre T1 Extension-10.9 G/T AUEQ over 8.03m

3 See ASX Announcement 05 Nov 2025 Maiden T5 Drilling up to1,714 g/t AgEq Over 1m

4 See ASX Announcement 09 Oct2025 Silver Rich Target 5,Sampling Up To 3,300 g/t Silver

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