Mr. Glenn Jessome reports

SILVER TIGER METALS INC. ANNOUNCES $87 MILLION BOUGHT DEAL FINANCING AND EL TIGRE PROJECT CAPITAL COST UPDATE

Silver Tiger Metals Inc. has entered into an agreement with Stifel Nicolaus Canada Inc. (Stifel Canada), on its own behalf and on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 87 million units of the company at a price of $1 per unit for gross proceeds to the company of $87-million. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.

Each unit comprises one common share of the company and one-half of one warrant. Each warrant shall be exercisable into one common share of the company at a price of $1.35 per warrant share for an exercise period of 24 months from the closing of the offering.

The company will grant the underwriters an option, exercisable in whole or in part, at any time until and including 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the offering. If this option is exercised in full, an additional $13.05-million in gross proceeds will be raised pursuant to the offering and the aggregate gross proceeds of the offering will be approximately $100-million.

The company plans to use the net proceeds from the offering to finance exploration and development expenditures at the company's silver-gold El Tigre project, located in Sonora, Mexico, as well as for working capital and general corporate purposes.

The offering is scheduled to close on or about Oct. 13, 2026, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX and the securities regulatory authorities.

The units will be offered by way of a short form prospectus to be filed in all provinces of Canada, except Quebec. The units will also be sold to U.S. buyers on a private placement basis pursuant to an exemption from the registration requirements in Rule 144A of the United States Securities Act of 1933, as amended, and other jurisdictions outside of Canada provided that no prospectus filing or comparable obligation arises.

The preliminary short form prospectus and the final short form prospectus will be available on SEDAR+. Copies of the preliminary short form prospectus and final short form prospectus may also be obtained by contacting the company or Stifel Canada, attention: ProspectusCanada@stifel.com.

Capital expenditure update for El Tigre project

The company is also providing an update on the expected capital expenditures (capex) for the construction of the mine and process plant for the stockwork zone at the project.

On March 18, 2026, the board of directors of the company approved the construction decision for the stockwork zone at the project and in the same month, entered into an engineering, procurement and construction management contract (EPCM) with Kappes, Cassiday & Associates (KCA), and Kappes, Cassiday del Norte S de RL de CV (KCN), to assist in the construction of the mine and process plant at the project. The company also hired its own experienced mine construction executive team to work with KCA and KCN. Commissioning and first pour are targeted for December, 2027.

The updated estimated capex for the project is now approximately $124-million (U.S.) (an increase of approximately $37-million (U.S.) from the initial capex estimate in the company's technical report, titled "Stockwork Zone Pre-Feasibility Study and Underground Preliminary Economic Assessment of the El Tigre Silver-Gold Project Sonora, Mexico," effective as of June 20, 2025, and dated Jan. 22, 2026), comprising approximately $108-million (U.S.) under the EPCM and approximately $16-million (U.S.) managed directly by the company.

The updated estimated capex is a result of the following:

• Following completion of the technical report, titled "Pre-Feasibility Study of the El Tigre Silver-Gold Project Sonora, Mexico for Silver Tiger Metals Inc.," effective as of Oct. 22, 2024, and dated Dec. 6, 2024, the company entered into a front-end engineering and design (FEED) contract with KCA, which included a review and update for the capex estimation. The increased capex was the result of this detailed exercise, which reflected the following:
  • Cost escalation in the mining industry over the last couple of years has been significant and has contributed an estimated 10 per cent to the current capex estimate compared to the time of the 2024 technical report.
  • Following the 2026 technical report, the company conducted additional geotechnical drilling and, on the basis of that analysis, added approximately $25-million (U.S.) to the scope of the earthworks. In particular, the Class C volumes (the material requiring blasting) have nearly doubled in the final design.
  • The company has entered into binding supply agreements for major equipment, including the crushing plant, Merrill Crowe precipitation circuit, and the conveying and stacking systems, with local suppliers. The negotiated pricing resulted in additional costs compared to the 2026 technical report, consistent with realized cost escalation in the industry.

Readers are reminded that the results of the economic analysis included in the 2026 technical report for the stockwork zone were based on certain assumptions made as of the effective date of the report and that those inputs are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those presented therein. Readers are encouraged to consider, among other things, the impact of the increased capex estimate on the economic analysis included in the 2026 technical report for the stockwork zone.

As at Sept. 10, 2026, the company had contractually committed approximately $81-million (U.S.), representing approximately 66 per cent of the total estimated capex, and had incurred approximately $17-million (U.S.) toward the capex requirement. The attached table summarizes the company's estimated remaining capex requirements and pro forma cash position following completion of the offering.

About Silver Tiger Metals Inc.

Silver Tiger is constructing the El Tigre stockwork zone project, a silver and gold heap leach project located in Sonora, Mexico. The project is 100 per cent owned by Silver Tiger and covers over 37,000 hectares. The 2026 technical report is available on SEDAR+ and under the company's profile, as well as on its website.

Qualified person

Dave Duncan, PGeo, vice-president of exploration of Silver Tiger, is the qualified person for Silver Tiger as defined under National Instrument 43-101. Mr. Duncan has reviewed and approved the scientific and technical information in this news release.

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