Mr. John Skeet reports

MITHRIL TO ACQUIRE THE LA DURA GOLD-SILVER PROPERTY ADJACENT TO ITS FLAGSHIP COPALQUIN PROPERTY, DURANGO STATE, MEXICO

Mithril Silver and Gold Ltd. has executed a purchase option to acquire the La Dura gold-silver property close to Mithril's flagship and district scale Copalquin property, both in Durango state, Mexico.

• The La Dura property consists of five contiguous mining concessions for a total area of 2,052 hectares, located less than five kilometres from the town of El Durazno and less than 20 km from the company's flagship Copalquin district property.
• The La Dura property hosts several historic mines and workings with the most notable being the four-level La Dura gold-silver mine with a 60-tonne-per-day processing facility.
• The property has a large historic database of mining records and data from various sampling campaigns from 1990's to 2018. The mine last operated in 2013.
• The company has an exclusive option to purchase 100-per-cent interest in the concessions at any time over four years by paying $4-million (U.S.) to the vendor.
• The company will maintain the La Dura mining concessions in good standing and has committed to complete lidar (light detection and ranging) and aerial magnetic surveys over the property in the first year and a minimum spend of $200,000 (U.S.) on exploration work in the second year. The lidar survey is scheduled to be flown over the property this month followed by the aerial magnetic survey in early 2026. There are no further exploration expenditure commitments.
• The acquisition of the La Dura property expands the company's landholding close to the company's flagship Copalquin district property, where drilling is progressing at targets 1 and 5, with target 3 drilling scheduled to commence in January, 2026. The first half of 2026 will be a pivotal period in the rapid advancement of the Copalquin district as the company progresses target expansion drilling and continue the company's geologic development of the feeder system responsible for the widespread gold and silver mineralization across this large district.

"The historic La Dura mine was a notable past producer, and the local geology provides potential to host gold and silver mineralization across the 20-square-kilometre mining concession area," said John Skeet, managing director and chief executive officer. "La Dura lies within the same geologic locality as our flagship Copalquin property and is only five kilometres from our existing support office in the town of El Durazno. The upcoming lidar and aerial magnetic surveys will provide an initial assessment of the prospectivity across the 20-square-kilometre concession area ahead of detailed mapping, sampling and future drill testing.

"Mithril has a strong foundation of knowledge at La Dura, with management having completed exploration work on the property in 2017 to 2018. The team's proven technical strengths and discovery experience at Copalquin position the company well to unlock value at La Dura."

About the La Dura project

La Dura consists of five contiguous mining concessions with a total area of 2,052 hectares and located in Durango state, Mexico, five km from the town of El Durazno and 20 km from Mithril's flagship Copalquin property.

The property hosts a significant Au-Ag (gold-silver) sheeted to stockwork vein system associated with northwest-striking faults in Tertiary rhyolite. Mineralization occurs on surface along 650 metres of strike and has been mined in the San Manuel shoot at the La Dura historic mine, to about 140 metres depth. Veins are characterized by low sulphide mineralization with minimal to no alteration of the host rhyolite tuff. Historically, the veins have been exploited and explored solely on the progress of the underground workings and assaying. The project warrants property-scale mapping, wide-spaced soil sampling and channel sampling to develop targets for drill testing. Lidar and aerial magnetic surveys are planned as precursors to a field program.

The veins at the various workings appear to be hosted by Upper Series volcanic rocks and may have significant depth potential should they extend into the lower series andesitic rocks at some greater depth.

Transaction terms

Upon execution of the purchase option agreement (POA) Mithril will pay to the vendor $25,000 (U.S.) and issue to the vendor 50,000 ordinary Mithril shares. The shares will be subject to a four-month hold period. The option payment schedule is as follows:

• At the 12-month anniversary pay the vendor $30,000 (U.S.);
• At the 18-month anniversary pay the vendor $30,000 (U.S.);
• At the 24-month anniversary pay the vendor $50,000 (U.S.);
• At the 30-month anniversary pay the vendor $50,000 (U.S.);
• At the 36-month anniversary pay the vendor $50,000 (U.S.);
• At the 42-month anniversary pay the vendor $50,000 (U.S.).

At any time during the 48-month term, Mithril may purchase 100-per-cent interest in the La Dura concession by paying the vendor $4-million (U.S.). Payment of any remaining six monthly payments subsequent to the purchase is not required.

The vendor may elect to receive all or part payment of the $4-million (U.S.) purchase price provided the Mithril 20-day VWAP (volume-weighted average price) share price is greater than or equal to the equivalent of $1.00 (U.S.) per share. Mithril may elect to make the payment in cash only and not be obligated to make any part of the payment in shares.

Mithril commits to complete lidar and aerial magnetic surveys over the concession areas during the first 12 months and a minimum direct exploration spend of $200,000 (U.S.) during the second 12 months.

If Mithril purchases the La Dura concessions, the vendor will be entitled to a NSR on production of 2.5 per cent. The NSR can be reduced to 1 per cent by paying the vendor $2.5-million (U.S.).

About the Copalquin gold silver project

The Copalquin mining district is located in Durango state, Mexico, and covers an entire mining district of 70 square km containing several dozen historic gold and silver mines and workings, 10 of which had notable production. The district is within the Sierra Madre gold-silver trend which extends north-south along the western side of Mexico and hosts many gold and silver districts.

Multiple mineralization events, young intrusives thought to be system-driving heat sources, widespread alteration together with extensive surface vein exposures and dozens of historic mine workings, identify the Copalquin mining district as a major epithermal centre for gold and silver.

Within 15 months of drilling in the Copalquin district, Mithril delivered a maiden JORC (Joint Ore Reserves Committee) mineral resource estimate demonstrating the high-grade gold and silver resource potential for the district. This maiden resource is detailed below (see Australian Securities Exchange release Nov. 17, 2021)^ and a National Instrument 43-101 technical report filed on SEDAR+.

• Indicated 691,000 tonnes at 5.43 grams per tonne gold, 114 g/t silver for 121,000 oz gold plus 2,538,000 oz silver;
• Inferred 1,725,000 t at 4.55 g/t gold, 152 g/t silver for 252,000 oz gold plus 8,414,000 oz silver.

(Using a cut-off grade of 2.0 g/t AuEq (gold equivalent).)

• 28.6 per cent of the resource tonnage is classified as indicated.

At this early stage, the metallurgical recoveries were assumed to be equal (93 per cent). Subsequent preliminary metallurgical testwork produced recoveries of 91 per cent for silver and 96 per cent for gold (ASX announcement Feb. 25, 2022) and these will be used when the resource is updated in the future. In the company's opinion there is reasonable potential for both gold and silver to be extracted and sold.

^ The information in this report that relates to mineral resources or ore reserves is based on information provided in the following ASX announcement: Nov. 17, 2021 -- maiden JORC resource 529,000 ounces at 6.81 g/t (AuEq), which includes the full JORC MRE (mineral resource estimate) report, also available on the Mithril Resources website.

The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the competent Person's findings are presented have not been materially modified from the original market announcement.

Mining study (conceptual) and metallurgical testwork supports the development of the El Refugio-La Soledad resource with conventional underground mining methods indicated as being appropriate and with high gold-silver recovery to produce metal on site with conventional processing. The average vein width is approximately 4.5 metres.

Mithril is currently exploring in the Copalquin district to expand the resource footprint, demonstrating its multimillion-ounce gold and silver potential. Mithril has an exclusive option to purchase 100-per-cent interest in the Copalquin mining concessions by paying $10-million (U.S.) on or any time before Aug. 7, 2028.

The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Competent persons statement -- JORC

The information in this announcement that relates to metallurgical test results, mineral processing, and project development and study work has been compiled by John Skeet who is Mithril's chief executive officer and managing director. Mr. Skeet is a fellow of the Australasian Institute of Mining and Metallurgy. This is a recognized professional organization (RPO) under the Joint Ore Reserves Committee (JORC) Code.

Mr. Skeet has sufficient experience of relevance to the styles of mineralization and the types of deposits under consideration, and to the activities undertaken, to qualify as a competent person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Skeet consents to the inclusion in this report of the matters based on information in the form and context in which it appears. The Australian Securities Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

The information in this announcement that relates to sampling techniques and data, exploration results and geological interpretation for Mithril's Mexican project, has been compiled by Darren LeFort who is Mithril's exploration manager. Mr. LeFort is a member of the Engineers and Geoscientists of British Columbia and a certified professional geologist (PGeo). This is a recognized professional organization (RPO) under the Joint Ore Reserves Committee (JORC) Code.

Mr. LeFort has sufficient experience of relevance to the styles of mineralization and the types of deposits under consideration, and to the activities undertaken, to qualify as a competent person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. LeFort consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

The information in this announcement that relates to mineral resources is reported by Rodney Webster, former principal geologist at AMC Consultants Pty. Ltd., who is a member of the Australian Institute of Geoscientists. The report was peer reviewed by Andrew Proudman, principal consultant at AMC. Mr. Webster is acting as the competent person, as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, for the reporting of the mineral resource estimate. A site visit was carried out by Jose Olmedo a geological consultant with AMC, in September, 2021, to observe the drilling, logging, sampling and assay database. Mr. Webster consents to the inclusion in this report of the matters based on information in the form and context in which it appears

Qualified persons -- National Instrument 43-101

Scientific and technical information in this report has been reviewed and approved by Mr. Skeet (FAUSIMM, CP) Mithril's managing director and chief executive officer. Mr. Skeet is a qualified person within the meaning of NI 43-101.

Samples are sent to ALS Global with sample preparation performed in Chihuahua City, Mexico, and assaying of sample pulps performed in North Vancouver, B.C., Canada