Mr. Robert Archer reports

PINNACLE CONFIRMS HIGH-GRADE MINERALIZATION IN UNDERGROUND DRILLING AT EL POTRERO WITH UP TO 58.2 G/T AU AND 631 G/T AG

Pinnacle Silver and Gold Corp.'s continuing underground drilling has confirmed and extended the previously announced high-grade gold-silver mineralization at the historic Pinos Cuates mine at the Potrero property in Durango, Mexico.

As announced on Aug. 18, 2026 , hole EPUG26035 was drilled horizontally along the Dos de Mayo vein to test the strike continuity of the mineralization and intersected a 13.18-metre core length assaying 9.69 grams per tonne gold and 143 grams per tonne silver. Follow-up drilling from the main level below and drilled updip on the vein has now intersected a well-mineralized section returning 6.19 g/t Au and 90 g/t Ag over a core length of 10.89 metres in hole EPUG26068. The best mineralized section, with visible gold and silver sulphides, returned 58.2 g/t Au and 631 g/t Ag over 0.41 metre. Additional holes have been drilled to better define the continuity of this zone and assays are pending.

"We are very pleased to see the continuity of grade in this area of the Pinos Cuates mine," stated Robert Archer, president and chief executive officer of Pinnacle. "Hole EPUG26068 was assayed on a rush basis due to the visibly apparent high-grade mineralization and to allow time for follow-up drilling before the drill was moved to the Dos de Mayo mine. The intersection in hole EPUG26068 is approximately 15 metres downdip of that in hole EPUG26035, and the continuity will help with stope definition once mine planning commences later in the year. Assays have been received up to hole EPUG26053, with others pending. Significantly, results to date indicate that, while many holes intersected only the fringes of the vein zone, with the core having been mined out, holes such as 26035 and 26068 (that intersected the entirety of the vein) have returned very strong results. This implies that the mineralization outside of the limited mine workings should still be intact."

To date, 76 holes have been drilled and assays received for the first 53 (see Table 1 below). Drilling is continuing at Pinos Cuates and it is anticipated that the drill will move to Dos de Mayo starting with hole EPUG26084. The best assay results to date are associated with zones of strong silicification and oxidation with veinlets of dark-grey to black quartz, which commonly occur within the centre of the vein. It has been observed that higher-grade material can sometimes be surrounded by a halo of lower-grade material.

Surface drilling is anticipated to commence in October and will fill in gaps between the historic mines in addition to testing updip and downdip and along strike to the northwest on the Dos de Mayo vein. Other mineralized veins such as El Capulin and La Estrella will also be drilled for the first time ever. The combined results will then be used to generate an internal resource estimate that will, in turn, be used to develop a preliminary mine plan.

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.

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.

The sampling and assay data from the core sampling and reporting are monitored through a QA/QC program designed according to best industry practice. Samples from HQ- and NQ-sized drill core are selected by Pinnacle geologists and cut into halves with a diamond saw at the project site. Half of the core is retained at the site for reference purposes. Sample intervals vary from 0.2 to 1.5 metres in length for HQ core and vary from 0.35 to 1.5 metres for NQ core, with samples being selected to honour geological contacts.

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

About the Potrero property

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 can be 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 will 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 royalty.

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.