Mr. John Carter reports

SILVER BULLET MINES SIGNS AGREEMENT TO DIRECT SHIP MATERIAL FROM MAJOR OFFTAKE CLIENT

Silver Bullet Mines Corp. has signed an agreement to directly ship material from both the KT gold mine and the SC silver mine. The agreement has a term of one year commencing Dec. 16, 2025, with annual renewals contemplated. The client is a large industry participant, and Silver Bullet sees very little counterparty risk.

Both the KT mine and the SC mine are located in the Globe area of Arizona proximate to Silver Bullet's wholly owned mill. This agreement will have no effect on the company's existing milling operations at its mill, where it will continue to process mineralized material into concentrate for sale.

The client has agreed to purchase material for direct shipping to its facilities. This material will not be processed through the Silver Bullet mill. It is to be crushed to a one-fourth-inch product at the respective mine sites and either loaded in super sacs or bulk direct into containers. The tonnage purchased will be initially up to 12,000 tons for calendar 2026, with the client agreeing to purchase larger amounts if available.

The company is evaluating several options to provide the most economical method to crush to spec and load the material. It is anticipated shipping should commence during the first quarter of calendar 2026. Acquisition of the necessary equipment to commence processing of this material has begun. This equipment should be readily available.

Pursuant to the agreement, the company will receive a provisional payment of 80 per cent of the estimated value of the shipment within five days of the client's receipt of documentation. The final balance will be paid when final weights and assays have been determined. Payments will be made based upon a price equal to the mean of the daily U.S.-dollar LMBA morning and afternoon quotations for gold and silver at the date of processing.

The client for the direct ship material is the same client that has an agreement to purchase the silver concentrate from the SC mine. Silver Bullet believes this is further confirmation it is expanding the company in a manner that is attracting high-quality long-term clients with aspirations to work together and build a significant mining operation.

This agreement represents yet another potential significant revenue generator for the company. It is made possible because of the incredible potential of KT and SC mines. The dramatic increase in the prices of precious metals also enables the company to expand its material recovery to include lower-grade material that otherwise might not have been saleable. This latest agreement will enable the company to focus on the much higher-grade material from underground at KT but still increase its daily volumes. The company also plans to expand and increase the throughput of the mill and finance the underground development of both the SC and KT mines. The company believes this a significant move forward in the implementation of its business plan.

The company also announces that its fourth batch of concentrate is ready for pickup resulting cumulatively in approximately 11,500 pounds of concentrate processed.

In addition, the company announces that it has incurred interest expense in the amount of $62,082 with respect to convertible debentures. Payment of the interest will be satisfied by the issuance of 258,675 common shares at 24 cents per share.

We seek Safe Harbor.