Mr. Peter Ball reports

SILVER HAMMER ENTERS INTO OPTION AGREEMENT TO ACQUIRE 100% INTEREST IN A STRATEGIC AND PROSPECTIVE SILVER PROJECT IN THE SILVER VALLEY OF IDAHO

Silver Hammer Mining Corp. has entered into an option agreement on Oct. 20, 2025, with Fahey Group Mines Inc., pursuant to which the company has been granted the right to acquire a 100-per-cent legal and beneficial interest in the Fahey Group property.

Key highlights of the Fahey property:

• The Fahey property consists of 360 acres, covered by 18 unpatented U.S. lode claims, situated directly in the strategic centre of the Silver Belt portion of the Coeur d'Alene mining district, one of the top known producing silver regions in the world where the Idaho State University (2006) estimated 1.18 billion ounces of silver has been produced.
• It is estimated by the Idaho State Historical Society that about 686 million ounces of Idaho state's total silver production (up to 1964), or half of all silver produced, came from the Coeur d'Alene district.
• The Fahey property is the last property within the Silver Belt, which has remained largely unexplored despite its strategic prime location and has been one of the desired properties to be acquired and explored for many years.
• The Fahey property has been owned by same family for over 60 years and this will represent for the first time the property has been available for exploration with modern exploration.
• The Fahey property is ideally situated between two of the well-known silver mines in North America: the currently operating Galena mine and the historic Sunshine mine. The Fahey property occupies a strategic position between property owned by Sunshine Silver Mining and Refining, and Americas Gold and Silver.
• The Fahey property is underlain by the same favourable Revett formation quartzite.
• The Sunshine land position surrounds the Fahey Group on three sides, which includes the multimillion-ounce silver producers notably the Sunshine mine, the Silver Summitt mine and the Polaris mine. The Americas Silver and Gold land position borders the Fahey property to the east, which includes the operating Galena mine and has produced million ounces of silver, along with the Coeur mine and the Mineral Point mine.
• More than 20 veins have been identified within the Fahey property, which is more than the number of veins in either the Bunker Hill mine (the largest mine in the district) or the Sunshine mine, with the greatest silver production in the Coeur d'Alene mining district.

"The company is extremely pleased to be able to secure such a strategic landholding surrounded by senior silver producers and explorers in one of the most sought-after locations in the Silver Valley. We are grateful to the Fahey Group to have confidence in our experienced exploration team," commented Peter A. Ball, president and chief executive officer. "It is not often a junior is able to have the opportunity to acquire such an exciting silver project that has remained relatively underexplored and more notably surrounded by close to one billion ounces of silver that have been discovered, developed and mined over the past 100 years. Our technical team looks forward to bringing modern exploration to such an interesting and highly prospective silver project. We are pleased with the terms of the acquisition, allowing Silver Hammer to focus our hard dollars into the ground to make a potential discovery for our shareholders and the Fahey Group."

Transaction overview

Under the terms of the option agreement, the company may earn a 100-per-cent interest in the property, free and clear of all encumbrances other than a retained royalty, by paying Fahey $50,000 (U.S.) in cash and issuing $450,000 (Canadian) worth of common shares of the company, to be satisfied as follows: $25,000 (U.S.) in cash within three business days of the effective date of the option agreement; $25,000 (U.S.) in cash on or before June 30, 2026; $50,000 (Canadian) in consideration shares on or before Dec. 31, 2026; $75,000 (Canadian) in consideration shares on or before Dec. 31, 2027; $75,000 (Canadian) in consideration shares on or before Dec. 31, 2028; $125,000 (Canadian) in consideration shares on or before Dec. 31, 2029; and $125,000 (Canadian) in consideration shares on or before Dec. 31, 2030.

In addition, the company must incur an aggregate of at least $1.5-million (Canadian) in exploration expenditures on the property, consisting of a minimum of $200,000 (Canadian) on or before Dec. 31, 2027, and a further $1.3-million (Canadian) on or before Dec. 31, 2030, with any excess expenditures from earlier periods credited toward later commitments.

The company may extend the deadline for the final share payment due Dec. 31, 2030, as well as the exploration expenditure deadline of Dec. 31, 2030, by one year through the issuance of $50,000 (Canadian) worth of consideration shares. The company may also accelerate any cash payments, share issuances or exploration expenditures at its sole discretion without penalty.

All consideration shares issued under the option agreement will be priced at the volume-weighted average trading price of the company's shares on the Canadian Securities Exchange for the 20 trading days prior to issuance, subject to the CSE's minimum pricing requirements. If the deemed price is less than five Canadian cents or otherwise not permitted under CSE policies and results in the aggregate value of the consideration shares issued being less than the stated dollar amount of the applicable installment, the company will pay the shortfall to Fahey in cash (converted to equivalent value in U.S. dollars) within 60 days of the applicable issuance date. The company will also have the option to make any payments in cash (converted to equivalent value in U.S. dollars) in lieu of issuing consideration shares.

Upon exercise of the option, the company will grant Fahey a 2.0-per-cent net smelter return royalty on the property, which may be reduced by 0.5 per cent (to 1.5 per cent) upon payment of $1-million (U.S.) to Fahey.

Following exercise of the option, upon the commencement of commercial production at the property, the company will also make a milestone payment of $1.5-million (U.S.) to Fahey, payable in cash, shares or any combination thereof, at the company's discretion, within 30 days of achieving commercial production.

Completion of the transaction remains subject to receipt of all required corporate and regulatory approvals, including the approval of the CSE. The transaction is an arm's-length transaction and will not result in any changes to the company's board or management. No finders' fees will be paid in connection with the transaction.

All securities issued pursuant to the transaction will be subject to a statutory hold period of four months in accordance with applicable securities laws.

Fahey project overview

The 18 unpatented claims of the Fahey property are located in the heart of the Silver Belt sector of the Coeur d'Alene mining district. The Coeur d'Alene district is one of the premier silver-producing mining districts in the world. The Silver Belt accounts for just over half of the silver produced in the district, and there is no meaningful production recorded and very limited exploration on the Fahey property.

Readers are cautioned that the company has not independently verified the information in respect of properties adjacent to the Fahey property and the mineralization on adjacent properties may not be indicative of the mineralization on the Fahey property.

The scientific and technical information in this news release has been reviewed and approved by Damir Cukor, PGeo, the company's technical director, projects, and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Silver Hammer Mining Corp.

Silver Hammer is a junior resource company focused on advancing past-producing high-grade silver projects in the United States. Silver Hammer controls 100 per cent of seven previously producing silver mines that are located within the Silver Strand project in the Coeur d'Alene mining district in Idaho, and within the Eliza silver project and the Silverton silver mine in Nevada. The company also controls the Lacy gold project in British Columbia, Canada. Silver Hammer's primary focus is to explore, define and develop silver projects near past-producing mines that have not been adequately tested. The company's portfolio also provides exposure to copper and gold.

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