Mithril Silver & Gold Kicks Off Maiden Drill Programme At Target 3, In The Multi-Target Copalquin Gold-Silver District

(TheNewswire)

Melbourne, Australia and Vancouver, Canada – January15, 2026 – TheNewswire - Mithril Silver and Gold Limited ("Mithril” or the"Company") (TSXV: MSG) (ASX: MTH) (OTCQB: MTIRF)is pleased to advise that 2026 drilling is offto a good start with work commenced at Target3 at its Copalquin District gold-silver projectin Durango State, Mexico.

Target 3 is a large area withsignificant historic mining activity on the eastern side of thedistrict. Recent channel sampling results, at the El Jabali historicworkings in Target 3 ,returned results up to 0.65 m @ 16 g/t gold and 1,275 g/t silver. (See ASX announcement, 1 December 2025).  Approximately3,300 metres is planned at Target 3 for its inaugural programme aspart of the 25,000 metres of drilling planned for the CopalquinDistrict in the first half of 2026.

The Target 3 maiden drill programme is designed to testthe continuity and scale of mineralisation and represents an importantstep toward unlocking the broader potential of the Copalquinepithermal system as we continue to advance multiple targets inparallel.

Additionally, Target 5 and Target 1 drilling isprogressing with the Target 1 drilling scheduled for completion duringQ1, 2026 ahead of updating the Target 1 maiden mineral resourceestimate (MRE).

The drone magnetic survey over the Copalquin and the LaDura mining concession areas will commence this month, and we areexpecting further assays from 2025 over the next few weeks.

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Figure 1 Drill commencing maiden drillprogramme this week at the Jabali workings in the Target 3 area on theeastern side of the Copalquin District.

“We are very pleased to have commenced drilling atTarget 3 following the Christmas break, marking another importantmilestone as we continue to advance multiple high-priority areasacross the Copalquin District,” said John Skeet, Managing Director& CEO.

“The 3,300-metre maiden drill program at Target 3 iscommencing around the El Jabali historic workings, where recentchannel sampling delivered high-grade results of up to 0.65 metres at16 grams per tonne gold and 1,275 grams per tonne silver. Target 3represents a large and highly prospective area on the eastern side ofthe district, underpinned by extensive historic mineworkings”

“As we have seen across the Copalquin District,multiple high-grade historic workings and targets provide strongevidence of a well-developed feeder-style epithermal system. Ourprograms are designed to test both continuity and scale ofmineralisation at our targets and are important steps in our strategyto unlock the broader district-scale potential of the Copalquinepithermal system as we advance several targets in parallel.”

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Figure 2  Plan map of Target 3 withthe planned drill hole locations for the 3.300 m maiden drillprogramme.

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Figure 3  Lower half of the CopalquinDistrict showing the channel sampling results at the multiple targetareas in the Copalquin District.  The maiden drill programme atTarget 3 has commenced at the Jabali historic mine in the north of theTarget 3 area.

 
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Figure 4 Mithril’s Copalquin and LaDura property locations in Durango State, Mexico

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Figure 5 LiDARidentified historic workings across the 70km2district. Current drilling locations at Target 1west and Target 5 (El Apomal), and Target 3.

ABOUT THE COPALQUIN GOLD SILVER PROJECT

The Copalquin mining district is located in DurangoState, Mexico and covers an entire mining district of 70km2 containing several dozen historicgold and silver mines and workings, ten of which had notableproduction. The district is within the Sierra Madre Gold Silver Trendwhich extends north-south along the western side of Mexico and hostsmany 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 17 November2021)^ and a NI 43-101 Technical Reportfiled on SEDAR+

Target 1 Maiden Resource:

• Indicated 691 kt @5.43 g/t gold,114 g/t silver for 121,000 oz goldplus 2,538,000 oz silver 

• Inferred 1,725 kt @4.55 g/t gold,152 g/t silver for 252,000 oz goldplus 8,414,000 oz silver 

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

• 28.6% of the resource tonnage is classified asindicated 

Table 3 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.

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

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 thisannouncement that relates to sampling techniques and data, explorationresults and geological interpretation for Mithril’s Mexican project,has been compiled by Mr Darren LeFort who is Mithril’s ExplorationManager. Mr LeFort is a member of the Engineers and Geoscientists ofBritish Columbia and a Certified Professional Geologist (P.Geo). Thisis a Recognised Professional Organisation (RPO) under the Joint OreReserves 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 – NI 43-101

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

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