Mr. Darwin Green reports

MACKAY GOLD & SILVER COMPLETES ACQUISITION OF COMSTOCK INC.'S NEVADA MINING ASSETS TO FURTHER CONSOLIDATE THE COMSTOCK DISTRICT

Further to the press release dated June 22, 2026, Mackay Gold & Silver Corp. has completed its acquisition of 100 per cent of Comstock Inc.'s mining assets in Storey county and Lyon county, Nevada, referred to herein as the Silver City lode properties. The acquisition expands Mackay's total landholdings by 70 per cent to 4,343 hectares (43 square kilometres), consolidating the largest claim package held by one company in Comstock district history.

"The historic Comstock district hosted some of the most productive mining ground in 19th century America, and we believe there is a lot more gold and silver to be found," stated Darwin Green, chief executive officer of Mackay. "Since the company's inception, Mackay has been intently focused on consolidation of the patchwork of mining properties that make up the district, which we view as a prerequisite to applying the type of modern, large-scale, systematic exploration the district deserves. The close of this acquisition is a pivotal advancement in this goal, uniting the district's three major vein systems, the Silver City lode, Occidental-Brunswick lode and Comstock lode, under single ownership for the first time. The acquisition adds two oxide gold-silver deposits supported by recent S-K 1300 historical estimates, plus a permitted heap leach and Merrill-Crowe processing facility providing future development optionality. Mackay is well funded, and, with two drill rigs already turning, our team is eager to unlock Comstock's potential."

Pursuant to the terms of the securities purchase agreement dated June 21, 2026, between Comstock, the company and the company's wholly owned U.S. subsidiary Mackay Precious Metals Inc., the buyer acquired all of the issued and outstanding membership interests in Comstock Mining LLC, Comstock Processing LLC, and Comstock Exploration and Development LLC, and all of the issued and outstanding shares of capital stock of Comstock Real Estate Inc. The acquired entities own or control the SCL properties, representing effectively all of Comstock's property interests and assets within the historic Comstock mining district. On closing of the acquisition, Comstock also assigned to the buyer the cash collateral for the reclamation surety bond on the American Flats processing facility and the Lucerne mine in the approximate amount of $4-million (U.S.).

In consideration for the acquisition of the acquired entities, on closing, the buyer paid $20-million (U.S.) in cash to Comstock, and the company issued two million common shares of the company to Comstock. On or before Dec. 21, 2027, the buyer shall pay to Comstock $7-million (U.S.), with up to $2-million (U.S.) of the second tranche payment payable in common shares of the company, subject to the approval of the TSX Venture Exchange and certain other conditions. The second tranche payment is secured by deeds of trust registered against the SCL properties. If, at any time on or prior to the date that is seven years after the closing date: (i) the buyer makes a construction decision in respect of a mine on any of the SCL properties; or (ii) a change of control of the buyer or Mackay for aggregate consideration of $500-million (U.S.) or greater occurs, then the buyer shall make a one-time payment to Comstock of $10-million (U.S.) in cash no later than 90 days following the occurrence of such triggering event.

Comstock retains a net smelter return royalty on the SCL properties at a rate of 1.5 per cent less the existing royalty burden on such part of the SCL properties as of the closing date provided that, with respect to any part of the SCL properties situated in Lyon county, Nevada, the royalty rate shall not be less than 0.5 per cent unless the existing royalty burden on such Lyon county parcel as of the closing date is greater than 2.25 per cent, in which case the total royalty burden on such Lyon county parcel including the NSR royalty shall not exceed 2.75 per cent. For the avoidance of doubt, if the existing royalty burden on a Lyon county parcel as of the effective date is 2.75 per cent or greater, the royalty rate applicable to such Lyon county parcel would be 0 per cent. The buyer shall have the right at any time to repurchase 100 per cent of the NSR royalty for a payment of $3.5-million (U.S.), provided that, if the seven-year period for the payment of the contingent payment has lapsed without the payment of the contingent payment, the royalty buyout payment shall be increased to $7-million (U.S.).

For further information on the SCL properties and the terms of the agreement, see the company's press release dated June 22, 2026.

The company obtained the conditional approval of the exchange for the acquisition of the acquired entities. The acquisition remains subject to the customary final approval process of the exchange. The first tranche shares are subject to a hold period expiring on Dec. 22, 2026, in accordance with applicable securities laws. The first tranche shares are also subject to a contractual hold period, such that 25 per cent of the first tranche shares shall become freely transferable on Feb. 22, 2028, an additional 25 per cent shall become freely transferable on June 22, 2028, an additional 25 per cent shall become freely transferable on Oct. 22, 2028, and the remaining 25 per cent shall become freely transferable on Feb. 22, 2029.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Mr. Green, chief executive officer and director of the company, and a qualified person under National Instrument 43-101. Mr. Green is not independent of the company.

About Mackay Gold & Silver Corp.

Mackay is a Nevada-focused gold and silver exploration company with 100-per-cent control of a large, consolidated land package in one of America's richest, productive and oldest mining districts. With an estimated 8.2 million ounces of historical gold production and 192 million ounces of silver produced between 1859 and 1926 from so-called bonanza lodes that averaged 35 grams per tonne gold and 726 g/t silver, the Comstock district is recognized as one of America's highest-grade epithermal systems and an attractive setting for modern discovery. Led by an experienced team with a strong record of discovery, development and value creation, Mackay is well funded and committed to delivering shareholder value through disciplined exploration and responsible resource development.

We seek Safe Harbor.