Mr. Tony Makuch reports

DISCOVERY ENTERS INTO ASSET PURCHASE AGREEMENT TO ACQUIRE CERTAIN TIMMINS MINERAL PROPERTIES FROM MCEWEN INC.

Discovery Mining Ltd.'s wholly owned subsidiary has entered into an asset purchase agreement to acquire, through wholly owned subsidiaries of McEwen Inc. (collectively the seller) certain mineral properties adjacent to the Dome mine, including the Fuller project, as well as the seller's 60-per-cent interest in the Paymaster joint venture (the purchased assets) for total consideration of $55-million, payable $50-million in common shares of the company and $5-million in cash. All amounts are in United States dollars unless otherwise specified.

• Supports Discovery's vision to significantly grow gold production in the Timmins camp;
• Expands the current land position contiguous with the Dome mine to support potential future expansion of the Dome mine, including the potential future location for processing and tailings infrastructure;
• Consideration to McEwen Inc. at closing includes $5-million in cash and $50-million payable in common shares of the company;
• Discovery enters into amended royalty agreement with Franco-Nevada Canada Holdings Inc., a subsidiary of Franco-Nevada Corp. with respect to the purchased claims in exchange for $8-million payable to Discovery, on closing of the acquisition.

Tony Makuch, Discovery's president and chief executive officer, commented: "The transaction announced today is an important step forward as we continue to establish the land position needed to achieve our extensive growth plans in the Timmins camp. In addition to further exploration upside, a key benefit of the land being acquired is that it provides an ideal location for potential new processing and tailings facilities to support large-scale production from our Dome mine. Dome has an 11-million-ounce inferred resource and we are working on plans to resume operations over the next five years using the existing Dome mill for processing. Longer term, we will look to operate the mine at a significantly higher level of production using a new processing facility to be located at the adjacent purchased assets."

The company also announced today that it has entered into a royalty purchase agreement with Franco-Nevada, pursuant to which the parties have agreed to amend, on closing of the transaction, the terms of the royalty agreement entered into as of April 15, 2025, with respect to the Porcupine operations, extending Franco-Nevada's existing royalty interest to include the purchased assets in exchange for $8-million payable to the company.

M. Makuch continued: "We want to thank Franco-Nevada for their continued support as we advance our ongoing expansion plans and transformational growth in the Timmins camp. From the very beginning of our efforts to acquire and grow Porcupine, the Franco-Nevada team has shared our vision and worked constructively with us to once again establish Timmins as one of the world's great gold camps."

Discovery anticipates closing of the transaction to occur in October, 2026. Completion of the transaction remains subject to certain conditions, including, among other things, the transfer of the property and all associated claims comprising the purchased assets and other customary closing conditions for a transaction of this nature including the extinguishment of the existing NPI royalty on the Fuller project and regulatory approvals including the approval of the Toronto Stock Exchange with respect to any common shares of the company to be issued as consideration.

About Discovery Mining Ltd.

Discovery Mining is a growing precious metals company that is creating value for stakeholders through exposure to gold, silver and other critical minerals. Discovery is advancing plans to more than double annual gold production, to over half a million ounces per year, through investment in the company's Porcupine assets, which include multiple operations, attractive growth projects, and significant exploration upside in one of the world's most renowned gold camps in and near Timmins, Ont. The acquisition of the Kidd operations in June, 2026, further increased Discovery's land position within the camp, provided valuable infrastructure that will support the company's growing gold business and added critical minerals to the company's current production profile. Discovery's silver exposure comes mainly from the 100-per-cent-owned Cordero project, one of the world's largest undeveloped silver deposits, which is located close to infrastructure in a prolific mining belt in Chihuahua state, Mexico.

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