Mithril Silver & Gold Extends 8 km Long High-Grade Gold-Silver System at Copalquin; Drilling Ramps Up

(TheNewswire)

- Expanded ChannelSampling and Mapping Continue to Highlight District-Scale Property-

Melbourne, Australia and Vancouver, Canada –TheNewswire – July 7th. 2025 - Mithril Silver and Gold Limited ("Mithril” or the
"Company") MSG MTH ispleased to announce that it has defined an extensive high-gradegold-silver system spanning 8kilometres and 1,200 metresvertically, at its flagship Copalquin Project in Mexico. Building onhigh-grade channel sampling and detailed mapping, drilling is about tocommence at the Target 5 area with Target 3 progressing for drillinglate Q3 2025. New sampling has extended mineralization at Target 2 bya further 1,000 metres, highlighting the district’s significantdiscovery potential as multiple high-priority targets advance inparallel.

Highlights

• Drilling to commence this month at Target 5– following strong gold and silver channelsample assays (further to results announced June 3, 2025) 

• Target 3 drilling to commence late thisquarter - high-grade gold and silver channelsample results reported with excellent progress for drillreadiness 

• Target 2 mineralised trend extended by 1,000mWSW with new sampling results 

• Santa Cruz historic multi-level minesampled, confirming continuousmineralization spanning 8km across the district with 1,200 m verticalextent — assays pending. High-grade soilsampling results reported for Target 4 (SanManuel Mine): first drill holes at the ZaragosaMine area planned for this month. 

Highlight channel sample results from surface andunderground workings at Targets 2, 3, 4 and 5

• 0.50 m @ 6.21 g/t gold, 265 g/tsilver (814502; Mina Lico, T2) 

• 1.00 m @ 19.85 g/t gold, 270 g/tsilver (527248; Mina Constancia, T3) 

• 0.90 m @ 12.40 g/t gold, 820 g/tsilver (527285; Surface, T3) 

• 0.50 m @ 13.25 g/t gold, 558 g/tsilver (814552; T3) 

• 0.70 m @ 5.92 g/t gold, 392 g/tsilver (814557; T3) 

• 0.65 m @ 5.67 g/t gold, 365 g/tsilver (814559; T3) 

• 0.50 m @ 5.80 g/t gold, 1 g/tsilver (814572; T3) 

• 0.90 m @ 8.03 g/t gold, 108 g/tsilver (814572; T3) 

• 0.50 m @ 1.29 g/t gold, 252 g/tsilver (814045; Surface T5) 

• 0.50 m @ 3.07 g/t gold, 34.2 g/tsilver (814053; Surface T5) 

Target 4 soil sample highlights at San Manuel minearea

SM-037 @ 4.10 g/t gold, 83 g/tsilver

SM-083 @ 2.73 g/t gold, 102 g/tsilver

SM-111 @ 5.66 g/t gold, 154 g/tsilver

SM-112 @ 5.77 g/t gold, 139 g/tsilver

SM-114 @ 4.13 g/t gold, 120 g/tsilver

SM-124 @ 5.03 g/t gold, 237 g/tsilver

SM-127 @ 2.53 g/t gold, 20 g/tsilver

With drilling underway this month at Target 5 where wehave abundant veining mapped and sampled, the first drill holesplanned for the central Zaragosa Mine area and at Target 3 end of Q32025, we are entering an exciting phase of exploration atCopalquin,” said John Skeet, MD and CEO of Mithril Silver and Gold. “The scale of this high-grade epithermal gold-silver systemcontinues to impress, with mineralisation now extending 8 kilometresacross the district and over 1,200 metres vertically, as demonstratedby our recent work at the Santa Cruz historic mine at the eastern endof the middle trend. With multiple high-priority targets advancing inparallel and significant extensions identified at Target 2, we arewell-positioned to unlock the district’s substantialpotential.”

COPALQUIN GOLD-SILVER DISTRICT, DURANGO STATE,
MEXICO

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Figure 1 – Copalquin District
location map, locations of mining and exploration activity and local
infrastructure. Note: the reserve/resources from company websites for
the neighbouring properties does not necessarily apply to the
Copalquin Project. Resources/resources for neighbouring properties
marked with * include estimated past production.

With 100 historic underground gold-silver mines and
workings plus 198 surface workings/pits throughout 70km2 of mining concession area, Copalquin
is an entire mining district with high-grade exploration results and a
maiden JORC resource. To date there are several target areas in the
district with one already hosting a high-grade gold-silver
JORC mineral resource estimate (MRE) at the
Target 1 area (El Refugio-La Soledad)1  and a NI 43-101 Technical Report filed on SEDAR+, supportedby a conceptional underground miningstudy completed on the maiden resource in early2022 and metallurgical test work (see ASX Announcement 25 February
2022). There is considerable strike anddepth potential to increase the resource at El Refugio and at othertarget areas across the district, plus the underlying geologic systemthat is responsible for the widespread gold-silvermineralisation.

With the district-wide gold and silver occurrences andrapid exploration success, it is clear the Copalquin District isdeveloping into another significant gold-silver district like the manyother districts in this prolific Sierra Madre Gold-Silver Trend ofMexico.

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Figure 2 LiDAR
identified historic workings across the 70km2 district. Current
drilling locations at Targets 1 and 2, high priority drill target area
of La Constancia-El Jabali (Target 3) and the new developing Target 5.
 Several new areas highlighted across the district for follow-up
work.

Copalquin District Exploration Progress
Update

Surficial and underground channel sampling at
Target 2, 3, 4 and 5 Areas
have continued to deliver excellent results, with several channel samples intersecting very high-grade
silver and high-grade gold within broad,
outcropping vein systems (Figure 3).

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Figure 3 Property-wide
channel sampling results

Ongoing mapping at Target 5 — including the El
Apomal, El Duraznito, Veta Azul, and Dulces Nombres areas —
continues to identify additional vein systems and underground
workings, significantly expanding the Target 5 area both along strike
and across strike (Figure 4). Several of the mapped veins display good
continuity, with some traceable for over 600 metres. The vein system
is predominantly striking northwest-southeast with veins in the
southwest of the target area dipping to the southwest and veins in the
northeast dipping to the northeast (Figure 4). Target 5 veins mapped to date, are hosted in granodiorite and
are situated at a lower elevation in the system at 650 – 900 m
compared with the mineralised zones at Target 1 (900 – 1,150 m) and
Target 2 (1,500 - 1,700 m).  

Surface and underground channel sampling continues to
return anomalous gold and silver values, with numerous assay results
still pending.

Complete sample results are presented in Table
1.

Significant gold and silver target 5 channel sampling
highlights include:

0.6 m @ 1.17 g/t Au, 85 g/t Ag (814016; surface)

0.55 m @ 1.17 g/t Au, 34.1 g/t
Ag (814033; surface)

0.5 m @ 1.28 g/t Au, 59.3 g/t
Ag (814037; surface)

0.5 m @ 1.29g/t Au, 252 g/t
Ag (814045; surface)

0.5 m @ 3.07 g/t Au, 34.2 g/t
Ag (814053; surface)

0.3 m @ 1.11 g/t Au, 43.0 g/t
Ag (814058; surface)

An exploration road is advancing to the Target 5 area
to provide access for drill pads.

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Figure 4: Channel sample results and vein traces in theTarget 5 Area

Target 3, which includes the Jabali, Constancia, SanAntonio, and Guadalupe mines, has revealed a network of veins throughongoing mapping efforts (Figure 5). While many of these veins exhibitlimited continuity, they occur in various orientations, with adominant northwest strike over a cumulative strike length of 1km.Channel sampling from both surface and underground workings hasreturned numerous high-grade gold and silver values, highlighting thepotential of the area. Notably, the Jabali minehosts veins characterized by abundant amethyst, suggesting a distinctmineralogical signature that may be useful for further vectoring.

Mapping and sampling will continue in the area to fullydevelop drill targeting.

Complete sample results are presented in Table1.

Significant gold and silver target 3 channel samplinghighlights include:

• 1.0m @ 1.08g/t Au, 114 g/t Ag (527246;underground) 

1.0 m @ 19.85 g/t Au, 270 g/tAg (527248; underground)

1.0 m @ 3.49 g/t Au, 231 g/tAg (527255; surface)

0.5 m @ 1.32 g/t Au, 66 g/tAg (527256; surface)

1.0 m @ 2.31 g/t Au, 60.8 g/tAg (527271; surface)

1.0 m @ 3.08 g/t Au, 179 g/tAg (527272; surface)

0.5 m @ 1.46 g/t Au, 50.6 g/tAg (527284; surface)

0.9 m @ 12.40 g/t Au, 820 g/tAg (527285; surface)

0.6 m @ 2.54 g/t Au, 170 g/tAg (742048; underground)

0.5 m @ 2.52 g/t Au, 155 g/tAg (742049; underground)

0.6 m @ 1.02 g/t Au, 83.3 g/tAg (814551; underground)

0.5 m @ 13.25 g/t Au, 558 g/tAg (814552; underground)

0.5 m @ 4.04 g/t Au, 314 g/tAg (814553; underground)

0.7 m @ 1.40 g/t Au, 83.3 g/tAg (814557; surface)

0.65 m @ 5.67 g/t Au, 365 g/tAg (814559; surface)

0.7 m @ 3.47 g/t Au, 256 g/tAg (814565; surface)

0.5 m @ 5.80 g/t Au, 1 g/tAg (814572; surface)

0.5 m @ 1.49 g/t Au, 41.7 g/tAg (527288; underground)

0.8 m @ 1.02 g/t Au, 41.7 g/tAg (814608; surface)

1.0 m @ 2.00 g/t Au, 4.7 g/tAg (814609; surface)

1.0 m @ 1.73 g/t Au, 27.6 g/tAg (814610; underground)

1.0 m @ 2.08 g/t Au, 43.4 g/tAg (814611; underground)

0.8 m @ 1.34 g/t Au, 52.0 g/tAg (814612; underground)

0.9 m @ 8.03 g/t Au, 108 g/tAg (814613; underground)

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Figure 5: Channel sample results and vein traces in theTarget 3 Area

Mina Lico, located just over one kilometrewest-southwest of Las Brujas within Target 2, has returned high-gradegold and silver values from limited sampling (Figure 1, Table 1).These results further support the potential for property-wide forhigh-grade mineralization and point to the need for continued mappingand sampling in the Target 2 area.

Significant gold and silver target 2 channel samplinghighlights include:

0.5 m @ 1.83 g/t Au, 213 g/t
Ag (742097; underground)

0.5 m @ 2.59 g/t Au, 191 g/t
Ag (742098; underground)

0.6 m @ 1.36 g/t Au, 142 g/t
Ag (814501; underground)

0.5 m @ 6.21 g/t Au, 265 g/t
Ag (814502; underground)

Table 1 High-Grade Gold and Silver Assay Results from The Copalquin
Project Area Channel Samples.

Drilling at Target 1 and 2
Areas

Ongoing resource drilling continues at Target 1 (Figure
6), focused on the eastern extent of the La Soledad and Refugio
structures.  While recent drill results have not yielded consistent
high gold and silver grades, 6 of the 9 drillholes released today
intersected mineralized quartz veins, with values up to 4.07 g/t Au
and 328 g/t Ag returned (MTH-LS25-21 and MTH-RE25-24, respectively). 
These drillholes also improved data spacing in sparsely drilled areas
of the Refugio and La Soledad vein systems which were classified as
sub-Inferred in the previous Mineral Resource Estimate (MRE).

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Figure 6:  Target 1 Area drill results

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Figure 7:  Los Reyes drill results (Target 1Area)

Table 2 Gold and Silver Assay Drillhole Results from the Target 1 Area

Final drill results are reported for the Target 2 areafor the maiden drill program targeting near surface mineralisation atthe two historic mine areas of La Brujas and El Peru. Recent drillingresults at Target 2 have not returned significant assay resultsobserved in previous drilling (see May 19th, 2025 news release) and channelsamples from underground workings. Further follow-up field work andinterpretation is needed before drilling continues.

Table 3 Gold and Silver Assay Drillhole Results from the Target 2Area.

Soil Sampling in Target 4

Previously unreported soil samples from the San ManuelMine (Target 4) Area have returned numerous high-grade gold and silverassay results. The high-grade samples are located primarily to thenorth of the workings of the San Manuel Mine (Figure X). Thesehigh-grade results further indicate the potential for the extension ofmineralised structures from the San Manuel Mine and warrant detailedmapping and sampling to fully develop the Target 4 Area.

Complete sample results are presented in Table4.

Significant gold and silver target 4 soil samplinghighlights include:

SM-036 @ 2.56 g/t Au, 59 g/tAg

SM-037 @ 4.1 g/t Au, 83 g/tAg

SM-083 @ 2.73 g/t Au, 102 g/tAg

SM-111 @ 5.66 g/t Au, 154 g/tAg

SM-112 @ 5.77 g/t Au, 139 g/tAg

SM-113 @ 2.1 g/t Au, 58 g/tAg

SM-114 @ 4.13 g/t Au, 120 g/tAg

SM-124 @ 5.03 g/t Au, 237 g/tAg

SM-127 @ 2.53 g/t Au, 20 g/tAg

SM-128 @ 2.08 g/t Au, 47 g/tAg

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Figure 8:  2023 Soil sample results at the San ManuelMine Area (Target 4)

Table 1 Gold and Silver Assay Soil
Sample Results from the Target 4 (San Manuel) Area. Assay Results
greater than 0.25 AuEq

ABOUT THE COPALQUIN GOLD SILVER PROJECT

The Copalquin mining district is located in Durango
State, Mexico and covers an entire mining district of 70km2 containing several dozen historic
gold and silver mines and workings, ten of which had notable
production. The district is within the Sierra Madre Gold Silver Trend
which extends north-south along the western side of Mexico and hosts
many world-class gold and silver deposits.

Multiple mineralisation events, young intrusives
thought to be system-driving heat sources, widespread alteration
together with extensive surface vein exposures and dozens of historic
mine workings, identify the Copalquin mining district as a major
epithermal centre for Gold and Silver.

Within 15 months of drilling in the Copalquin District,
Mithril delivered a maiden JORC mineral resource estimate
demonstrating the high-grade gold and silver resource potential for
the district. This maiden resource is detailed below (see ASX release 17 November
2021)^ and a NI 43-101 Technical Report filed on SEDAR+

• Indicated 691 kt @5.43 g/t gold,114 g/t silver for 121,000 oz goldplus 2,538,000 oz silver 

• Inferred 1,725 kt @4.55 g/t gold,152 g/t silver for 252,000 oz goldplus 8,414,000 oz silver 

(using a cut-off grade of 2.0 g/t AuEq*)

• 28.6% of the resource tonnage is classified asindicated 

Table 2 -
Mineral resource estimate El Refugio – La Soledad using a cut-off
grade of 2.0 g/t AuEq*

*  In determining the gold equivalent (AuEq.) grade
for reporting, a gold:silver price ratio of 70:1 was determined, using
the formula: AuEq grade = Au grade + ((Ag grade/70) x (Ag recovery/Au
recovery)). The metal prices used to determine the 70:1 ratio are the
cumulative average prices for 2021: gold USD1,798.34 and silver:
USD25.32 (actual is 71:1) from kitco.com.  At this early stage, the metallurgical recoveries wereassumed to be equal (93% for gold and for silver). Subsequentpreliminary metallurgical test work produced recoveries of 91% forsilver and 96% for gold (ASX Announcement 25 February 2022) and thesewill be used when the resource is updated in the future.  In the Company’s opinion there isreasonable potential for both gold and silver to be extracted andsold.

^ The information in this reportthat relates to Mineral Resources or Ore Reserves is based oninformation provided in the following ASX announcement: 17 Nov 2021 -MAIDEN JORC RESOURCE 529,000 OUNCES @ 6.81G/T (AuEq*), which includes the full JORC MREreport, also available on the Mithril Resources LimitedWebsite.

The Company confirms that it is not aware of any newinformation or data that materially affects the information includedin the original market announcement and that all material assumptionsand technical parameters underpinning the estimates in the relevantmarket announcement continue to apply and have not materially changed.The company confirms that the form and context in which the CompetentPerson’s findings are presented have not been materially modifiedfrom the original market announcement.

# For Target 5 area where silverequivalent (AgEq) has been used in the maps, AgEq is determined usingthe formula: AgEq grade = Ag grade + ((Au grade x 70) x (Aurecovery/Ag recovery)). The metal prices used todetermine the 70:1 ratio are the cumulative average prices for 2021:gold USD1,798.34 and silver: USD25.32 (actual is 71:1) from kitco.com.   At this early stage, the metallurgical recoveries for Au and Ag are assumed to be equal (90% forgold and for silver) in the absence of metallurgical test work forTarget 5 material. In the Company’s opinion there is reasonablepotential for both gold and silver to be extracted and sold.

Mining study and metallurgical test work supports thedevelopment of the El Refugio-La Soledad resource with conventionalunderground mining methods indicated as being appropriate and withhigh gold-silver recovery to produce metal on-site with conventionalprocessing.

Mithril is currently exploring in the CopalquinDistrict to expand the resource footprint, demonstrating itsmulti-million-ounce gold and silver potential.  Mithril has an exclusive option to purchase 100% interest in the Copalquin mining concessions by paying US$10Mon or any time before 7 August 2028.

-ENDS-

Released with the authority of the Board.

For further information contact:

• John Skeet

  Managing Director and CEO

  jskeet@mithrilsilvergold.com

  +61 435 766 809

• NIKLI COMMUNICATIONS

  Corporate Communications

  liz@mithrilsilvergold.com

  nicole@mithrilsilvergold.com

Competent Persons Statement - JORC

The information in this announcement that relates tometallurgical test results, mineral processing and project developmentand study work has been compiled by Mr John Skeet who is Mithril’sCEO and Managing Director. Mr Skeet is a Fellow of the AustralasianInstitute of Mining and Metallurgy. This is a Recognised ProfessionalOrganisation (RPO) under the Joint Ore Reserves Committee (JORC)Code.

Mr Skeet has sufficient experience of relevance to thestyles of mineralisation and the types of deposits underconsideration, and to the activities undertaken, to qualify as aCompetent Person as defined in the 2012 Edition of the Joint OreReserves Committee (JORC) Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves. Mr Skeetconsents to the inclusion in this report of the matters based oninformation in the form and context in which it appears. TheAustralian Securities Exchange has not reviewed and does not acceptresponsibility for the accuracy or adequacy of this release.

The information in this announcement that relates tosampling techniques and data, exploration results and geologicalinterpretation for Mithril’s Mexican project, has been compiled byMr Patrick Loury who is Mithril’s Project Consultant. Mr Loury is amember of the American Institute of Professional Geologists and aCertified Professional Geologist (CPG). This is a RecognisedProfessional Organisation (RPO) under the Joint Ore Reserves Committee(JORC) Code.

 Mr Loury has sufficient experience of relevance tothe styles of mineralisation and the types of deposits underconsideration, and to the activities undertaken, to qualify as aCompetent Person as defined in the 2012 Edition of the Joint OreReserves Committee (JORC) Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves. Mr Louryconsents to the inclusion in this report of the matters based oninformation in the form and context in which it appears.

The information in this announcement that relates toMineral Resources is reported by Mr Rodney Webster, PrincipalGeologist at AMC Consultants Pty Ltd (AMC), who is a Member of theAustralian Institute of Geoscientists. The report was peer reviewed byAndrew Proudman, Principal Consultant at AMC. Mr Webster is acting asthe Competent Person, as defined in the 2012 Edition of the Joint OreReserves Committee (JORC) Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves, for thereporting of the Mineral Resource estimate. A site visit was carriedout by Jose Olmedo a geological consultant with AMC, in September 2021to observe the drilling, logging, sampling and assay database. MrWebster consents to the inclusion in this report of the matters basedon information in the form and context in which it appears

The Australian Securities Exchange has not reviewed anddoes not accept responsibility for the accuracy or adequacy of thisrelease.

Qualified Persons – NI 43-101

Scientific and technical information in this Report hasbeen reviewed and approved by Mr John Skeet (FAUSIMM, CP) Mithril’sManaging Director and Chief Executive Officer. Mr John Skeet is aqualified person within the meaning of NI 43-101.

Table 6 Mineralised intercepts in reported drillholesequal to and above 0.1 g/t AuEq.

(*See ‘About Copalquin Gold Silver Project’ sectionfor JORC MRE details and AuEq. Calculation)

Table 7 Gold and Silver Results for Channel Samples atCopalquin (Previously Unreported)