Mr. Robert Archer reports

PINNACLE PREPARES FOR UNDERGROUND DRILL PROGRAM ON HIGH-GRADE GOLD-SILVER TARGETS AT EL POTRERO

Pinnacle Silver and Gold Corp.'s geological team, led by Jorge Ortega, qualified person, has prepared an inaugural underground drilling program for the high-grade El Potrero gold-silver project in Durango, Mexico. Systematic underground channel sampling has been conducted since acquiring the project at the end of February and comprises 773 samples in the three historic mine workings along 500 metres of the Dos de Mayo epithermal vein system. This work has identified several shoots of high-grade gold-silver mineralization in the three mines (see Pinnacle news releases of June 2, July 22, Sept. 9 and Nov. 12, 2025), with individual grades up to 85.1 grams per tonne gold and 520 grams per tonne silver. Several hundred surface channel samples above the historic mines grading up to 37.4 grams per tonne gold and up to 2,280 grams per tonne silver (see Pinnacle news release of June 2, 2025) imply continuity of the mineralization to surface.

As the underground sampling was limited to the extent of the mine workings, detailed drilling is necessary to determine the ultimate size, shape and grade of the mineralized zones. Consequently, Pinnacle's geological team has compiled the results and created 3-D models of the Dos de Mayo vein and the exposed mineralization in the three mines in order to create a program of systematic drilling, whereby the vein structure will be tested every 12.5 metres along strike and vertically. As the holes will be collared either in or immediately adjacent to the vein structure, holes will be relatively short, in the range of 20 to 25 metres in length. At present, it is anticipated that the entire program will comprise approximately 2,600 metres in 112 holes and take about six weeks to complete.

"The underground drilling will be a significant step in the development of the Potrero project," stated Robert Archer, Pinnacle's president and chief executive officer. "It is not common that the first drill program on a new project is underground. However, we are fortunate to have good access to at least some of the mineralization through the historic mine workings and this detailed program will essentially be delineation drilling rather than exploration.

"With the results of this program, we will gain a very good understanding of the principal mineralized zones such that we can begin putting together a preliminary mine plan. Follow-on surface drilling can then test the areas between the mine workings in addition to less developed veins like El Capulin and La Estrella that are being sampled for the first time."

A certain amount of development work will be required in the historic workings to create enough room for the drill set-ups and make sure that the drillers will have a safe working environment. This work will begin early in the new year and will take about one month to complete, with drilling to follow as soon as possible.

Quality assurance/quality control

The technical results contained in this news release have been reported in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects. Pinnacle has implemented industry-standard practices for sample preparation, security and analysis given the stage of the project. This has included common industry QA/QC procedures to monitor the quality of the assay database, including inserting certified reference material samples and blank samples into sample batches on a predetermined frequency basis.

Systematic chip channel sampling was completed across exposed mineralized structures using a hammer and maul. The protocol for sample lengths established that they were not longer than two metres or shorter than 0.3 metre. The veins tend to be steeply dipping to vertical, and so these samples are reasonably close to representing the true widths of the structures. Samples were collected along the structural strike or oblique to the main structural trend. Grab samples, by their nature, are only considered as indicative of local mineralization and should not be considered as representative.

All samples were bagged in prenumbered plastic bags; each bag had a numbered tag inside and was tied off with adhesive tape and then bulk bagged in rice bags in batches not to exceed 40 kilograms. They were then numbered, and batch bags were tied off with plastic ties and delivered directly to the SGS laboratory facility in Durango, Mexico, for preparation and analysis. The lab is accredited to ISO/IEC 17025:2017. All samples were delivered in person by the contract geologist who conducted the sampling under the supervision of the qualified person.

SGS sample preparation code G_PRP89, including weight determination, crushing, drying, splitting and pulverizing, was used following industry best practices, where all samples were crushed to 75 per cent less than two millimetres, riffle split off 250 grams and pulverized split to greater than 85 per cent passing 75 microns. All samples were analyzed for gold using code GA_FAA30V5 with a fire assay determination on 30-gram samples with an atomic absorption spectrography finish. An ICP-OES analysis package (inductively coupled plasma -- optical emission spectrometry) including 33 elements and four-acid digestion was performed (code GE_ICP40Q12) to determine silver, zinc, lead, copper and other elements.

Qualified person

Jorge Ortega, PGeo, a qualified person as defined by National Instrument 43-101 and the author of the NI 43-101 technical report for the El Potrero project, has reviewed, verified and approved for disclosure the technical information contained in this news release.

About the El Potrero property

El Potrero is located in the prolific Sierra Madre Occidental of western Mexico and lies within 35 kilometres of four operating mines, including the 4,000-tonne-per-day Cienega mine (Fresnillo), the 1,000-tonne-per-day Tahuehueto mine (Luca Mining) and the 250-tonne-per-day Topia mine (Guanajuato Silver).

High-grade gold-silver mineralization occurs in a low-sulphidation epithermal breccia vein system hosted within andesites of the Lower Volcanic series and has three historic mines along a 500-metre strike length. The property has been in private hands for almost 40 years and has never been systematically explored by modern methods, leaving significant exploration potential.

A previously operational 100-tonne-per-day plant on site can be refurbished/rebuilt and historic underground mine workings rehabilitated at relatively low cost in order to achieve near-term production once permits are in place. The property is road accessible with a power line within three kilometres.

Pinnacle will earn an initial 50-per-cent interest immediately upon commencing production. The goal would then be to generate sufficient cash flow with which to further develop the project and increase the company's ownership to 100 per cent, subject to a 2-per-cent NSR (net smelter return) royalty. If successful, this approach would be less dilutive for shareholders than relying on the equity markets to finance the growth of the company.

About Pinnacle Silver and Gold Corp.

Pinnacle is focused on the development of precious metals projects in the Americas. The high-grade El Potrero gold-silver project in Mexico's Sierra Madre belt hosts an underexplored low-sulphidation epithermal vein system and provides the potential for near-term production. In the prolific Red Lake district of Northwestern Ontario, the company owns a 100-per-cent interest in the past-producing, high-grade Argosy gold mine and the adjacent North Birch project with an eight-kilometre-long target horizon. With a seasoned, highly successful management team and quality projects, Pinnacle Silver and Gold is committed to building long-term, sustainable value for shareholders.

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