Grafton Resources Announces LOI to Acquire Silver One Project in Chile

(TheNewswire)

Vancouver, British Columbia –January 20, 2026 – TheNewswire - GraftonResources (CSE:GFT; OTCQB: GFTFF)("GraftonResources" or the "Company") ispleased to announce that the Company has entered into a non-bindingletter of intent (the “LOI”) with Asesorias e Inversiones Sol SpA(the “Vendor”) pursuant to which the Company proposes to acquire adirect 100% interest in the Silver One project (“Silver One” or the“Project”) located in Chile (the “Proposed Acquisition”).

Highlights

• Potentially high-grade silver-copper veins as wastedump vein material averages 296 g/t Ag and 2.6% Cu 

• Historic mining district hosts many Au-Ag-Cu epithermalvein systems 

• Silver One Project hosts an undrilled and open-endedmineralizing system 

Campbell Smyth, CEO and Chairman, commented:“Silver One offers theopportunity to explore a high-grade silver-copper target that isuniquely well suited for development. The project is located in awell-established mining area and Silver One has the potential to bethe next high-grade Ag-Cu deposit in this district.

Grafton now has two ideally locatedprojects in a premier mining jurisdiction. There is a global shortageof silver and copper assets with good grade, clean metallurgy andsimple geometry. We plan to drill Silver One in the second half of2026 and are currently building up our local exploration team. SilverOne is also accessed from the same logistical hub as the recentlysigned Alicahue Copper project offering further logisticalsynergies.”

Merlin Marr-Johnson, Technical Advisor, commented:“Silver grades of almost300 g/t in the waste material are highly encouraging. The hope is thatthe primary material is even higher grade. The high tenor of thetarget, coupled with good access means that significant value can becreated within a compact package.”  

Silver One Project Overview

Location

The Silver One Project is centered on the San Lorenzo1-18 concession located in the historic Au-Ag-Cu mining Pedernaldistrict of the Petorca Municipality, central Chile. The project isaccessed via established gravel roads from Chincolco and Pedernales,with short private-road access to the site. Historic work was carriedout by Eagle Rock Resources SpA (“Eagle Rock”) undera lease agreement with S.C.M. Cerro Pedernal Dos.

Background

The Silver One Project is located in the region aroundPetorca which hosts nearly 90 ore bodies, mostly polymetallic veins,some copper veins, and one copper breccia pipe. The area ischaracterised by epithermal low sulfidation vein systems hosted byCretaceous volcanic andesitic sequences (Camus et al., 1991) in thewestern foothills of the Andean Cordillera of central Chile.

The Silver One Project targets silver-copper-bearingsulphide vein systems historically exploited by underground methods.The adit mouth is located at 332,252 E; 6,448,714 N (WGS 84, UTM Zone19 South) Historic workings indicate the presence of structurallycontrolled mineralization hosted within volcanic and volcaniclasticsequences, with mineral assemblages consistent with Ag–Cusulphide systems typical of the region. Workcompleted by Eagle Rock focused on integrating modern surveytechniques with geological mapping and targeted sampling:

• High-resolution drone-based topographic survey,generating 2 m contour intervals and a 3D surface model. 

• Surface geological mapping identifying avolcanic–volcaniclastic stratigraphic sequence dominated byandesitic lavas, volcanic breccias, and tuffs. 

• Rehabilitation and LIDAR survey of the Esperanza Adit(~400 m), enabling accurate 3D modelling of undergroundaccess. 

• Detailed underground geological mapping of the adit,identifying a vertically stacked sequence of grey to red andesitesoverlain by thick volcanic breccia and tuff units. 

• Trenching and channel sampling of historic mine wastedumps to establish a proxy for grade where direct access to old stopeswas not possible. 

Geological Interpretation andResults

The underground mapping identifies that mineralizedveins are hosted within grey volcanic breccias with reducingcharacteristics, interpreted as the favourable horizon for Ag–Cusulphide deposition. The absence of surface exposure impliesmineralization is blind and structurally controlled, potentiallyconfined to a coherent zone with a probable SW–NE structuralorientation.

A detailed evaluation of a historic waste dump combinedtrenching, systematic sampling, granulometric analysis, topographicsurveying, 3D modelling, and volumetric estimation. Ten pits (1–3 mdeep) and 24 samples defined an estimated 8,120 tonnes of historicmine waste, with average grades of approximately 96 g/t Ag and 0.80%Cu, calculated using a loose bulk density of 1.43 g/cm³. The locationof the waste dump and associated samples is 332,245 E; 6,448,707 N(WGS 84, UTM Zone 19 South).

The waste material was screened using a 5 cm mesh toobtain samples suitable for manual sorting. Vein material(silica–carbonate) was separated from host rock (andesite), and eachfraction was sent to the laboratory for analysis as separate samples.The vein material showed sulphide mineralization dominated bytennantite–tetrahedrite (locally freibergite),chalcocite–covellite, chalcopyrite, galena, and rare bornite. Theveins include abundant barite and banded quartz, consistent withepithermal to mesothermal vein systems. 13.85 kg of vein material wasassayed at AAA Laboratories and returned an average grade of 296 g/tAg and 2.6% Cu.

Project Potential & NextSteps

Although the historic workings are not fullyaccessible, the combination of underground geometry, favourablelithological hosts, and multi-element sulphide mineralization confirmsthe presence of an open-ended mineralizing system. Potential nextsteps include:

• Securing safe access to historic stopes and raises todirectly sample in situ vein material. 

• Targeted geophysical surveys (IP/resistivity) to definesulphide structures beneath cover. 

• Focused drilling to test continuity, thickness, andgrade of interpreted vein zones. 

Transaction Terms

Under the terms of the LOI, the Company proposes toacquire the Project in exchange for total deemed consideration ofC$820,000 comprised of:

(i) a cash payment of C$100,000to the Vendor; and

(ii) the issuance of 800,000common shares in the capital of the Company (the “Consideration Shares”) to the Vendor at a deemed price of $0.90 perConsideration Share having an aggregate deemed value of C$720,000. Theshares issued will be subject to voluntary escrow provisions and willbe released over 36 months.

The final structure of the Proposed Acquisition issubject to, among other things, the negotiation and execution of adefinitive agreement, completion of satisfactory due diligence, andthe satisfaction of customary closing conditions. There can be noassurance that a definitive agreement will be entered into or that theProposed Acquisition will be completed.

The Proposed Acquisition is consistent with theCompany’s strategy focused on the discovery and development ofmineral assets in the Americas. Subject to closing, the Companyintends to advance the Project through systematic technical review anddisciplined exploration planning.

OTCQB SymbolChange

TheCompany is also pleased to announced that its common shares willcommence trading under its new OTC ticker symbol “GFTFF",effective January 20, 2026.

Thechange from the previous symbol "PMSXF" to "GFTFF"is part of the Company's ongoing efforts to align its U.S. marketidentity with its current corporate name and Canadian SecuritiesExchange ticker "GFT." The Company's CUSIP numberremain unchanged.

QA/QC Procedures

Eagle Rock followed robust QA/QC procedures. The aimwas to characterise silver, copper, and associated metal content ofhistoric waste dump material through systematic channel and rocksampling. Channel samples were cut using hand tools to a consistentwidth (~10–20 cm) and depth (~3–5 cm). Material was collectedcontinuously along the channel and placed directly into labeled samplebags. The rock chips were screened to be greater than 5 cm and samplesare intended to be indicative, not representative of bulk grade. Thefragments were separated into vein, wall rock, and unmineralized hostrock by hand, weighed by rock type, and samples were assigned a uniquesample ID at the time of collection. The samples were sealed inheavy-duty plastic sample bags, tagged internally and externally, andtransported by company personnel to the certified, independent AAALaboratory in Chile. After standard sample preparation at thelaboratory, silver and base metals were analysed using ICP-MSfollowing four-acid digestion.

Qualified Person

Gilberto Schubert (B.Sc., M.Sc., MBA, M.Sc. Min Ec.), aQualified Person as defined by National Instrument 43-101 and anindependent Technical Advisor to the Company, has reviewed andapproved the technical information provided in this news release,including the sampling, analytical and test data underlying thetechnical information contained in this news release. Specifically,the QP verified selected laboratory assay certificates against thereported rock samples.

About GraftonResources

Grafton Resources is a Canadian exploration companylisted on the Canadian Securities Exchange (CSE), focused on thediscovery and development of mineral assets in the Americas. TheCompany is committed to responsible exploration, strong communitypartnerships, and generating shareholder value through disciplinedproject advancement.

On behalf of Grafton Resources.

Campbell Smyth
Interim Chief Executive Officer, Chairman andDirector

For further information, please contact:

Campbell Smyth
csmyth@graftonresources.com
+61403203402

CAUTIONARY STATEMENT REGARDINGFORWARD-LOOKING INFORMATION

This news release includes certainstatements and information that constitute forward-looking informationwithin the meaning of applicable Canadian securities laws. Allstatements in this news release, other than statements of historicalfacts are forward-looking statements. Such forward-looking statementsand forward-looking information specifically include, but are notlimited to, statements that relate to the Proposed Acquisition,potential mineralization at the Project, future exploration plans onthe Project and the timing and results of future exploration..

Statements contained in this releasethat are not historical facts are forward-looking statements thatinvolve various risks and uncertainty affecting the business of theCompany. Such statements can generally, but not always, be identifiedby words such as "expects", "plans","anticipates", "intends", "estimates","forecasts", "schedules", "prepares","potential" and similar expressions, or that events orconditions "will", "would", "may","could" or "should" occur. All statements thatdescribe the Company's plans relating to operations and potentialstrategic opportunities are forward-looking statements underapplicable securities laws. These statements address future events andconditions and are reliant on assumptions made by the Company'smanagement, and so involve inherent risks and uncertainties, asdisclosed in the Company's periodic filings with Canadiansecurities regulators, including without limitation, risks related tothe completion of the Proposed Acquisition; the dangers inherent inexploration, development and mining activities; actual exploration ordevelopment plans and costs differing materially from the Company’sestimates; the ability to obtain and maintain any necessary permits,consents or authorizations required for mining activities;environmental regulations or hazards and compliance with complexregulations associated with mining activities; climate change andclimate change regulations; fluctuations in exchange rates; theavailability of financing; operations in foreign and developingcountries and the compliance with foreign laws, remote operations andthe availability of adequate infrastructure; fluctuations in price andavailability of energy and other inputs necessary for miningoperations; shortages or cost increases in necessary equipment,supplies and labour; regulatory, political and country risks,including local instability or acts of terrorism and the effectsthereof; the reliance upon contractors, third parties and jointventure partners; challenges to title or surface rights; thedependence on key personnel and the ability to attract and retainskilled personnel; the risk of an uninsurable or uninsured loss;adverse climate and weather conditions; litigation risk; andcompetition with other mining companies. As a result of these risksand uncertainties, and the assumptions underlying the forward-lookinginformation, actual results could materially differ from thosecurrently projected, and there is no representation by the Companythat the actual results realized in the future will be the same inwhole or in part as those presented herein. the Company disclaims anyintent or obligation to update forward-looking statements orinformation except as required by law. Readers are referred to theadditional information regarding the Company's business containedin the Company's reports filed with the securities regulatoryauthorities in Canada. Although the Company has attempted to identifyimportant factors that could cause actual actions, events, or resultsto differ materially from those described in forward-lookingstatements, there may be other factors that could cause actions,events or results not to be as anticipated, estimated or intended. Formore information on the Company and the risks and challenges of itsbusiness, investors should review the Company's filings that areavailable at www.sedarplus.ca.

The Company provides no assurancethat forward-looking statements and information will prove to beaccurate, as actual results and future events could differ materiallyfrom those anticipated in such statements or information. Accordingly, readers should not placeundue reliance on forward-looking statements or information. TheCompany does not undertake to update any forward looking statements,other than as required by law.

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