Mithril Silver and Gold Limited Reports Significant MRE Upgrade and Quarterly Activities

Melbourne, Australia and Vancouver, Canada — July 31, 2026 — Leads & Copy — Mithril Silver and Gold Limited announced its quarterly activities and cash flow for its Copalquin and La Dura properties in Durango State, Mexico, for the period ended June 30, 2026. The company reported a significant mineral resource estimate (MRE) upgrade for Target 1, with total constrained and diluted Indicated and Inferred resources of 343,000 ounces of gold and 8.479 million ounces of silver (464,000 ounces AuEq), and 103,000 ounces of gold and 3.398 million ounces of silver (151,000 ounces AuEq), respectively. Indicated resources total 3.391 million tonnes grading 3.15 g/t gold and 77.8 g/t silver, while Inferred resources total 1.436 million tonnes grading 2.23 g/t gold and 73.6 g/t silver.

This represents a 196% increase in higher-confidence indicated gold and silver compared to the previous MRE, with 75% of the total gold and silver now classified as indicated. The resource is constrained within preliminary underground mining shapes and incorporates expected mining dilution, offering a more realistic basis for future engineering and economic studies. The MRE remains open along strike and at depth, presenting multiple expansion opportunities. The discovery cost for Target 1 MRE is less than US$20 per ounce AuEq, derived from approximately 60,000 metres of drilling in 204 drill holes.

Exploration at the Target 3 area, the first drilling since 2020, has revealed extensive gold and silver mineralization with high-grade intercepts, and further drilling is planned for the next quarter. Drilling at Target 5 has expanded the known gold-silver mineralization, also with high-grade intercepts in the La Maquina area. The final Target 1 drilling for the MRE upgrade yielded strong results on the western end of the deposit area, supporting extensional follow-up.

Financially, Mithril reported a cash balance of A$7.3 million as of June 30, 2026, and the company remains debt-free. Mexican value-added tax refunds have continued, with MXN11.5 million (approximately A$940,000) received in Mexico during the June 2026 quarter.

John Skeet, Managing Director and CEO, commented that the June quarter marked a significant step in de-risking Target 1 and expanding the broader Copalquin epithermal silver-gold system. He highlighted that the upgraded MRE provides a practical foundation for mine planning and economic evaluation. The Target 1 drilling program strengthened the geological model, confirmed continuity through and beyond a post-mineral dyke system, and identified additional mineralized structures, demonstrating that the system remains open. The knowledge gained at Target 1 is being applied across the wider Copalquin district.

Mithril has two drills active on-site, executing the remaining fully funded 12,000 metres of drilling for the 2026 program, aimed at advancing other target areas for additional resources and testing deeper system drivers identified through extensive mapping, geophysics, and structural work.

Planned exploration activities for the September 2026 quarter include drill testing west and northwest of the Target 1 resource area, follow-up drilling along strike from high-grade intercepts at the historic Copalquin mine workings, progressing deep, key structural targeting drill holes across the district, and further drilling at Target 3. The company also plans to progress economic assessment and derisking work for Target 1 and initiate drill planning and permitting for La Dura. The program remains fully funded to complete the remaining 12,000 metres of drilling for 2026.

Details on the Target 1 MRE upgrade were provided, including tables showing undiluted and diluted mineralisation based on various gold price sensitivities and reporting within underground mining shapes. The MRE was generated assuming a bulk underground mining method (long hole open stoping) with an average mining width of approximately 4 metres on a diluted basis. The difference between undiluted and diluted grades reflects the conservative mining dilution assumption.

The company also detailed drilling results from Target 3, including high-grade intercepts such as 0.50 m at 33.2 g/t gold and 5.9 g/t silver. Initial drilling at Target 3 has confirmed extensive epithermal-style mineralization, establishing it as a prospective area for growth. Further drilling is planned for the second half of 2026.

Drilling at Target 5, specifically at the La Maquina discovery, yielded intercepts such as 0.85 m at 6.20 g/t gold and 764 g/t silver. This area, hosted in granodiorite within a parallel vein set, shows high-grade silver and gold mineralization.

The report also included pre-MRE upgrade drilling results for Target 1, showing various gold and silver intercepts, and discussed the geological understanding of the El Refugio and La Soledad areas. The company noted that recent age dating confirms the mineralization age at approximately 27 million years, relative to the post-mineral dyke system at 22 million years.

The corporate and financial summary reiterated the A$7.3 million cash balance and debt-free status. Exploration expenditure for the quarter was A$3.4 million, focused entirely on the Copalquin District. Payments to related parties of the entity per ASX Listing Rule 5.3.5 pertained to fees, salary, and superannuation for directors and consultants.

Regarding planned exploration for the September 2026 quarter, Mithril plans to drill test west and northwest of Target 1, conduct follow-up drilling along strike from historic mine workings, progress deep structural targeting drill holes, test deeper at Target 3, advance economic assessment for Target 1, and prepare for initial drilling and permitting at La Dura. The company is fully funded for the remaining 12,000 metres of drilling in 2026.

About the Copalquin and La Dura Gold Silver Properties, Mithril is undertaking an aggressive exploration program in 2026, with 25,000 metres of drilling planned across the Copalquin District. The district features over 100 historic underground workings. Mithril has an exclusive option to purchase 100% interest in the Copalquin mining concessions. The La Dura property, recently added to the portfolio, offers a brownfield site with multiple historic workings and an identified 1.5 km mineralization corridor.

Source: Mithril Silver and Gold Limited