Mr. Ray Wladichuk reports

SILICON METALS CORP. EXECUTES LETTER OF INTENT RESPECTING MINERAL CLAIMS IN NEWFOUNDLAND AND LABRADOR

Silicon Metals Corp. has executed a letter of intent (LOI) dated as of April 17, 2026, with OIG Overseas Investment Group Ltd., which contemplates Silicon Metals purchasing OIG's exclusive option to acquire a 100-per-cent interest in and to seven mineral licences totalling 69 mineral claims covering approximately 1,700 hectares in Newfoundland and Labrador. The property is prospective for high-purity silica.

OIG is the optionee under an option agreement dated effective March 31, 2025, with Noseworthy Group Inc., pursuant to which OIG has the option to acquire a 100-per-cent interest in and to the property (subject to a 2.5-per-cent net smelter return (NSR) royalty in favour of the optionor) by making cash payments, issuing shares and incurring exploration expenditures on the property.

The LOI contemplates Silicon Metals acquiring OIG's entire right, title, interest and obligation under the option agreement, in exchange for issuing 10 million company common shares to OIG or its shareholders. The shares will be issued at 13.5 cents per share, representing an aggregate value of $1.35-million. When issued, the shares will have such restrictions on transfer as required pursuant to applicable securities laws and the policies of the Canadian Securities Exchange.

Under the LOI, Silicon Metals and OIG have agreed to proceed diligently and in good faith to draft, negotiate and attempt to finalize a definitive written agreement within 45 days of the execution of the LOI. Closing of the transaction remains subject to a number of conditions, including completion of due diligence by both parties, negotiation and execution of the definitive agreement, the optionor's written consent to the assignment of the option agreement by OIG to Silicon Metals (including any amendments to the option agreement as may be necessary or advisable in connection with such assignment), and approval of the Canadian Securities Exchange, if required. Each of OIG and Noseworthy Group Inc. is arm's length to Silicon Metals. The company will provide updates respecting the proposed transaction as and when warranted.

About Silicon Metals Corp.

Silicon Metals is focused on exploration and development of critical minerals, with a focus on high-purity silica. The company's Maple Birch project, located approximately 30 kilometres southeast of Sudbury, Ont., is a high-purity quartz pegmatite project with a 3,000-tonne-per-year production permit. The company holds a 100-per-cent interest in the Crystal Hills project, located approximately 40 kilometres north of the city of North Bay, Ont., Canada, which consists of five mineral claims comprising 18 cells totalling approximately 400 hectares. The company also holds an undivided 100-per-cent right, title and interest in the Ptarmigan silica project, located approximately 130 kilometres from Prince George, B.C., which has a five-year exploration drilling and blast permit. The company has also acquired an undivided 100-per-cent right, title and interest in both the exploration-stage Silica Ridge silica project, located approximately 70 kilometres southeast from the town of MacKenzie in British Columbia, as well as the exploration-stage Longworth silica project, located approximately 85 kilometres east from Prince George, B.C.

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