Mr. Daniel Rodriguez reports

MERCADO MINERALS SIGNS LOI TO ACQUIRE LA FRANCA WITHIN THE ZAMORA PROJECT AND SAMPLES 1.00 METRE OF 1.53 KG/T SILVER AND 1.39 G/T GOLD

Mercado Minerals Ltd. has signed a letter of intent (LOI) to purchase the La Franca concession surrounded by Mercado's Campanillas concession on the Zamora project in Sinaloa, Mexico. Once a definitive agreement is signed, it is structured as a three-year option agreement to acquire 100 per cent subject to a 2-per-cent net smelter return royalty (NSR or royalty). Consolidation of the Campanillas area unlocks 750 metres of mineralized veining that has never been drill tested. High-grade silver and gold surface chip sampling results from La Franca returned multiple high-grade intervals, including 1.00 metre of 1.53 kilograms per tonne silver and 1.39 g/t gold (1,501 g/t AgEq (silver equivalent)) and 0.80 metre of 534 g/t silver and 3.58 g/t gold (757 g/t AgEq).

Highlights:

• Consolidation of the La Franca and Campanillas concessions unlocks 750 metres of combined vein strike extent of high-grade silver and gold mineralization that has never been drill tested.
• 2026 chip Sampling from the La Franca segment of the vein returned:
  • 1.00 metre of 1,530 g/t silver and 1.39 g/t gold (1,501 g/t AgEq);
  • 0.80 metre of 534 g/t silver and 3.58 g/t gold (757 g/t AgEq);
  • 3.00 metres (true width) of 229 g/t silver and 1.12 g/t gold (295 g/t AgEq).
• Historic samples from the La Franca segment of the vein returned:
  • 1,720 g/t silver and 12.96 g/t gold (2,530 AgEq) in a stope wallrock grab sample;
  • 460 g/t silver and 2.90 g/t gold (634 AgEq) in a 42-kilogram blended underground grab sample.
• The company intends to initiate the process to apply for permits to drill test Campanillas-La Franca immediately.

CEO comment

Daniel Rodriguez, chief executive officer and director, commented:

"The 2026 results at La Franca, together with the historical data, confirm why we want to acquire the concession. Consolidating La Franca with the Campanillas segment of the vein gives us 750 metres of combined vein strike extent of high-grade silver and gold mineralization at Zamora that has never been drill tested, including multiple results exceeding one kilogram per tonne in silver. Our team's field mapping and sampling have built the confidence to move forward with permitting and advancing Mercado's inaugural diamond drill program to test this vein system and unlock its full potential."

The technical information and data for the Zamora property appears to be of a good standard. However, the QP has not conducted sufficient work to independently validate the assay rock sample results from Zamora. Therefore, the company is treating the Zamora results as historical in nature and are not to be relied on. The QP will independently verify results of the historic work during a site visit later this year.

Letter of intent terms

Under the terms of the LOI, and contemplated for the definitive agreement, Mercado can earn a 100-per-cent interest in La Franca through staged option payments totalling $600,000 (U.S.) over three years: $100,000 (U.S.) payable upon signing, followed by three payments of $33,333.33 (U.S.) each at four, eight and 12 months after signing (the 12-month payment coinciding with the first anniversary), $200,000 (U.S.) on the second anniversary and $200,000 (U.S.) on the third anniversary. The concession remains subject to a 2-per-cent net smelter return royalty (NSR), which Mercado has the right to buy back in whole for $500,000 (U.S.) to acquire the full 2-per-cent royalty.

Quality assurance/quality control and chain of custody

All 2026 rock samples are chip samples. Chip samples are laid out with visual sample interval marks, across the perceived true width of veins and structures, before being systematically chipped into sample bags. Once bagged, samples are grouped into rice bags and secured by a locking security tag with a unique security tag identification number. Sample batches are transported from the exploration site in Zamora to a secured courier transport service vehicle provided by ALS Laboratories. The samples are delivered by ALS secured courier to their laboratory in Hermosillo for analysis.

Samples are crushed by ALS to over 70 per cent passing below two millimetres and split using a riffle splitter. Sample splits are then pulverized to over 85 per cent passing below 75 micrometres. Gold determinations are completed by fire assay with an atomic absorption (AA) finish on a 30 g subsample of the prepared pulp (Au-AA23). Any sample returning over 10 g/t gold is reanalyzed by fire assay with a gravimetric finish on a 50 g subsample (Au-GRA21). In addition, a 34-element analysis is performed on a 0.25 g subsample of the prepared pulps by a four-acid digestion followed by an inductively coupled plasma atomic emission spectroscopy (ICP-AES) finish (ME-ICP61). Samples that return overlimit values for silver, lead or zinc are finished by ore grade analysis (Ag-OG62, Pb-OG62 and/or Zn-OG62).

Qualified person

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and was reviewed and approved by Kelson Willms, PGeo, of Archer, Cathro & Associates (1981) Ltd. Mr. Willms is a qualified person for the purposes of National Instrument 43-101.

About Mercado Minerals Ltd.

Mercado Minerals is a silver-focused exploration company targeting the next world-class discovery in Mexico's emerging Western silver belt, part of the prolific Sierra Madre occidental mining district. With a proven team boasting extensive experience in Mexican exploration, Mercado is actively advancing multiple projects across more than 3,000 hectares. The company is committed to creating shareholder value through disciplined exploration, strategic growth and discovery-driven results.

We seek Safe Harbor.