Mr. Robert Archer reports

PINNACLE DISCOVERS SILVER-LEAD-ZINC MINERALIZATION FOLLOWING UP ON LIDAR SURVEY AT EL POTRERO

Pinnacle Silver and Gold Corp. has discovered previously unknown silver-lead-zinc (Ag-Pb-Zn) mineralization on the southern block of the high-grade El Potrero gold-silver project in Durango, Mexico. The discovery was made during the first few weeks of a mapping and prospecting program designed to follow up on shafts, adits and prospecting pits interpreted from the airborne lidar (light detection and ranging) survey recently completed over the property.

As announced on Jan. 6, 2026, the lidar survey was flown over the entire 1,074-hectare property and confirmed known structural trends, outlined previously unknown structures, and identified a total of six shafts, 64 adits and 51 prospecting pits on the two claim blocks comprising the project. Follow-up fieldwork began in early February on the southern Maria Fernanda 2 (MF2) claim block, where three shafts, 14 adits and 22 pits were interpreted across the concession.

On the first pass of follow-up work, several outcrops with silver-lead-zinc sulphides in silicified breccia veins hosted by porphyritic andesite were observed and sampled. Individual assays up to 266 grams per tonne (g/t) silver, 4.39 per cent lead and 2.89 per cent zinc (see the attached table) were obtained from channel samples up to 0.9 metre (m) in length.

"We were initially impressed with the prospectivity of the project implied by the lidar and now the identification of mineralized vein material in the artisanal workings is a testament to the effectiveness of the survey," stated Robert Archer, Pinnacle's president and chief executive officer. "The combination of leading-edge technology, superb interpretive skills by our consultant at GeoCloud Analytics, of Melbourne, Australia, and basic boots-on-the-ground follow-up prospecting have led to the discovery of a zone of polymetallic mineralization that we were previously unaware of. This is exploration at it's best.

"All of the mineralization on the northern El Potrero block is purely gold and silver with no base metals, so this new discovery represents an entirely new target for us on the project. Having said that, all four of the operating mines surrounding the project are polymetallic so this mineralization is not entirely surprising and we look forward to further defining the extent of this exciting new discovery."

The porphyritic andesite hosting the breccia veins is locally chloritized and pyrite is a common accessory mineral. A rhyolitic tuff/breccia overlies the andesite and typically exhibits strong argillic alteration, suggesting that the mineralized veins could extend underneath the rhyolite cover rocks. The rhyolite is believed to be one of, if not the uppermost, lithological units of the lower volcanic series, the most common host to precious and base metal mineralization in the Sierra Madre belt of western Mexico.

The newly discovered polymetallic veins have a northeasterly trend as opposed to the dominantly northwesterly trend of the gold-silver veins in the northern part of the Potrero property. The veins appear to extend for at least 650 metres along strike and additional samples have been submitted to SGS Labs in Durango for assaying. Artisanal workings lie approximately 150 metres to the west and have yet to be sampled. In a regional context, the Ag-Pb-Zn veins at the Topia mine, just four kilometres (km) away, are also northeast-trending (considered to be older than the northwest-trending gold mineralization) and it is possible that these new veins represent an extension of the Topia district mineralization.

Follow-up mapping, sampling and prospecting are continuing on the MF2 block and are being initiated on the unexplored part of the northern El Potrero block, where artisanal workings have been interpreted from the lidar survey.

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 Potrero project, has reviewed, verified and approved for disclosure the technical information contained in this news release.

About the 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 (tpd) Cienega mine (Fresnillo), the 1,000 tpd Tahuehueto mine (Luca Mining) and the 250 tpd 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 historical 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 tpd plant on site can be refurbished/rebuilt and historical 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 net smelter return (NSR) 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 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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