(via TheNewswire)

Melbourne, Australia and Vancouver, Canada – TheNewswire - October 28, 2026 - Mithril Silver and Gold Limited ("Mithril" or the "Company") (TSXV: MSG) (ASX: MTH) (OTCQB: MTIRF) is pleased to report on its quarterly activities and cash flow for its Copalquin and La Dura properties in Durango State, Mexico for the period ended September 30, 2026.

EXPLORATION HIGHLIGHTS

• First systematic drilling of the Copalquin-Zaragoza Structure at Target 4 returned wide, high-grade and near-surface silver-gold mineralisation, confirming mineralisation over a strike length of 550 metres and 200 metres vertically within a structure with a potential strike length of 1.5 km1: 

  • 11.70 m @ 456 g/t AgEq2 (1.06 g/t gold and 381 g/t silver) from 22.0 m (CO26-001), including 

3.40 m @ 1,239 g/t AgEq (2.72 g/t gold and 1,049 g/t silver) from 28.4 m, and including

0.60 m @ 3,877 g/t AgEq (4.81 g/t gold and 3,540 g/t silver) from 31.2 m

• • 13.95 m @ 387 g/t AgEq (1.76 g/t gold and 264 g/t silver) from 88.85 m (CO26-002), including 

1.00 m @ 1,747 g/t AgEq (7.03 g/t gold and 1,255 g/t silver) from 97.0 m

• • 6.50 m @ 320 g/t AgEq (0.22 g/t gold and 305 g/t silver) from 93.4 m (CO26-003), including 

0.50 m @ 1,890 g/t AgEq (1.07 g/t gold and 1,815 g/t silver) from 97.0 m

• The Copalquin-Zaragoza Structure remains open, with approximately 400 m of strike to the northwest towards El Refugio (Target 1) and 600 m to the southeast towards the historic San Manuel mine. Drilling has progressed with two drills at Target 4 to expand the structural corridor (assays pending). 

• Follow-up drilling at La Maquina (Target 5) intercepted 0.50 m @ 12.20 g/t gold and 848 g/t silver (1,702 g/t AgEq) from 168.25 m (MA26-002), extending the La Maquina high-grade discovery 150 m to the northwest. 

• Post-resource-upgrade drilling at Target 1 intercepted 13.45 m @ 1.55 g/t gold and 16.6 g/t silver from 30.4 m (LS26-008), including 0.50 m @ 27.90 g/t gold and 156 g/t silver from 41.2 m at La Soledad, and 0.55 m @ 7.54 g/t gold, 17.4 g/t silver from 404.95 m (RE26-017) down dip at El Refugio. 

• Target 1 Scoping Study/Preliminary Economic Assessment (PEA) commenced3, underpinned by the upgraded Mineral Resource Estimate (75% Indicated), with permitting work progressing. 

• NI 43-101 Technical Report for the upgraded Target 1 Mineral Resource Estimate (effective date June 29, 2026) filed on SEDAR+ on August 17, 2026. 

Corporate

• Cash balance of A$4.1M as of 30 September 2026 and Mithril remains debt free. 

• Mexican value added tax refunds of MXN3.5M (~A$270k) were received in Mexico during the September 2026 quarter. 

• Annual Report and Management Discussion and Analysis for the year ended 30 June 2026 released on ASX and TSXV 29 September 20264. 

• Mithril presented at the Precious Metals Summit, Beaver Creek, Colorado (22–25 September 2026). 

Commenting on the September 2026 quarter, Managing Director and CEO John Skeet said:

"The September quarter delivered a second potential resource area at Copalquin. Our first systematic drilling of the Copalquin-Zaragoza Structure at Target 4 (adjacent to Target 1) returned wide, high-grade silver-gold intercepts and confirmed mineralisation over 550 metres of strike and 200 metres vertically, with the structure open in both directions. Applying the geological model developed at Target 1, in particular our understanding of the post-mineral dyke system, has been central to this success and we look to apply this to other key areas of this large district.

At Target 1, the upgraded resource, now 75% Indicated and constrained within underground mining shapes, provides a strong foundation for a Scoping Study/Preliminary Economic Assessment (PEA).  The PEA is the key next step in demonstrating the economic potential of a high-grade underground silver-gold development at the first target area in the Copalquin district with results for early 2027.  Permitting to further derisk the target 1 development is progressing.

Two drills have been focused on Target 4 as we complete the fully funded 25,000 m 2026 program (assays pending). La Dura, Targets 3 and 5 and Cucaracha are lined up for drilling in 2027in addition to ongoing Target 4 resource drilling, giving Mithril a strong pipeline of news flow and catalysts over the coming months."

Click Image To View Full Size

Figure 1: Copalquin mining concession area map (70km2) showing the current main target areas, Target 1 resource area and the Target 4 structure location with other potential areas of model application (in red) across the district.

The historic Copalquin mine is located on the northwest margin of the Copalquin arroyo, above the historic San Manuel workings. Two short tunnels were driven on a 0.4 to 0.8 m wide, steeply dipping quartz vein that sits within a 15 m wide structural corridor of thinner veins. Across the ridge to the northwest, the caved Zaragoza workings appear to be developed on the same structure.5

Earlier drilling below the Copalquin workings in 2024 returned 5.66 m @ 2.58 g/t gold and 230 g/t silver from 18.5 m (CDH-152), while several holes intersected a post-mineral dyke system (Tapp) that was previously interpreted to terminate the mineralisation. In 2025, drilling at Zaragoza intercepted 0.57 m @ 6.40 g/t gold and 4,400 g/t silver from 342.4 m (MTH-ZG25-37), approximately 130 m down dip from the historic workings.

Applying the revised interpretation of the post-mineral dyke system developed at El Refugio6, three holes (CO26-001 to CO26-003, totalling 528 m) were drilled during the quarter to test the Copalquin structure along strike, at a similar elevation and across the dykes. All three holes intercepted the target structure within the host granodiorite:

• CO26-001 – the first hole drilled on the east side of the Copalquin arroyo, a 60 m step-out from CDH-152, intercepted an 11.70 m wide (downhole) hydrothermal vein and quartz breccia zone. 

• CO26-002 – a 120 m step-out northwest of CDH-156 and 70 m southeast of MTH-ZG25-42, designed to bridge the Copalquin and Zaragoza structures, intercepted a 13.95 m wide (downhole) mineralised hydrothermal quartz breccia. 

• CO26-003 – a 60 m step-out southeast of CO26-001, intercepted two zones of mineralisation; the upper zone partially truncated by the dyke system and the lower zone spanning 6.50 m (downhole) of mineralised quartz breccia and stockwork. 

The program extended the known footprint of the Copalquin vein along strike at a consistent elevation of approximately 850 metres above sea level and bridged the Copalquin and Zaragoza structures. Untested ground remains along approximately 600 m of strike and 350 m up-dip to the southeast between CO26-003 and the historic San Manuel mine, and along approximately 400 m of strike with 250 m up-dip to the northwest towards El Refugio.

Anomalous base metal mineralisation, dominated by zinc and lead with less common copper, was intercepted in all three holes at generally low concentrations. This may reflect a polymetallic component at the deeper or lower-temperature levels of the broader epithermal silver-gold system. Base metals are not included in metal equivalent calculations.

Click Image To View Full Size

Figure 2: Copalquin-Zaragoza Structure plan map showing drill traces and recent drill intercepts

Click Image To View Full Size

Figure 3: Long section of the El Refugio – Copalquin-Zaragoza vein system looking northeast

Following completion of the Target 1 Mineral Resource Estimate (MRE) drilling program in June 2026, Mithril commenced an exploration drilling campaign testing geophysical and structural targets, advancing methodically from west to east across the district.7

• El Refugio and La Soledad – four holes were completed after the MRE cut-off date at El Refugio (2 holes, 1,038 m) and La Soledad (2 holes, 723 m). RE26-017 intercepted mineralisation in two zones down dip of the El Refugio vein, while drilling at La Soledad tested the southeast extension of the vein, returning several notable intercepts including 13.45 m @ 1.55 g/t gold and 16.6 g/t silver from 30.4 m (LS26-008). 

• Refugio West – five holes were drilled at El Gallo (2 holes, 462 m), La Guacima (1 hole, 228 m) and El Platano (2 holes, 1,143 m) to test the western extension of the Refugio vein between the Mineral Resource area and El Gallo. The Refugio structure was intercepted; however, mineralisation contained no reportable grades. At El Platano, EP26-002 intersected the Refugio structure between 306.05 m and 311.60 m downhole as a brecciated zone with hydrothermal quartz and minor sulphides, with anomalous but non-reportable grades. 

Click Image To View Full Size

Figure 4: Target 1 plan map showing drill hole trace locations, highlight intercepts in this announcement and resource footprint area

In the Target 5 area, drilling tested the depth and northwest extensions of El Apomal (3 holes, 865 m), Las Lianas (3 holes, 513 m) and La Maquina (1 hole, 234 m).8

• La Maquina – MA26-002 followed up the discovery hole MA26-0019 as a 150 m step-out to the northwest and intercepted the structure approximately 100 m below surface, returning 0.50 m @ 12.20 g/t gold and 848 g/t silver from 168.25 m. 

• El Apomal – holes intercepted quartz breccia structures at the projected depths with reportable intercepts for gold and silver. AP26-003 intersected a semi-massive sulphide zone within a northeast-trending structure, returning 6.2 m of 0.58% lead and 0.55% zinc from 200 m, including 1 m of 2.62% lead and 1.61% zinc from 205.2 m, providing insight into the broader mineralised system. 

• Las Lianas – narrow silver-bearing intercepts including 0.65 m @ 0.48 g/t gold and 53.7 g/t silver from 74.35 m (LI26-002). 

Drill results reported during the quarter

Table 1: Significant drill results reported during the September 2026 quarter

Downhole lengths reported; true widths not yet established. AuEq10 and AgEq as defined in the footnotes. See ASX announcement dated 27 August 2026 for full results ≥0.10 g/t AuEq and JORC Table 1.

Table 2: Drill hole collar details for holes reported during the quarter (UTM WGS84 Zone 13N)

Some collar locations may be from handheld GPS pending differential GPS survey.

TARGET 1 MINERAL RESOURCE AND SCOPING STUDY/PEA

The upgraded Target 1 Mineral Resource Estimate (MRE), announced on 30 June 2026 and amended on 3 July 2026, is constrained within preliminary underground mining shapes and incorporates expected mining dilution11. 75% of the total contained gold and silver is classified as Indicated (Table 3).

Building on the MRE, Mithril has commenced a Scoping Study/Preliminary Economic Assessment (PEA) for Target 1, targeted for early 2027, providing additional basis for the permitting work to continue progress. The supporting NI 43-101 Technical Report, "Technical Report – Updated Mineral Resource Estimate – Target 1, Copalquin Property, Durango Mexico", with an effective date of June 29, 2026, was filed on SEDAR+ on August 17, 2026 and is available at www.mithrilsilvergold.com.

Table 3: Upgraded Copalquin Target 1 Mineral Resource Estimate (underground mining shape constrained and diluted)

Effective date June 29, 2026.

1. Numbers may not add due to rounding. All dollar values in United States Dollars unless otherwise noted.

2. Mineral Resources were prepared in accordance with the JORC Code (2012) and the CIM Definition Standards (2014) and Estimation of Mineral Resource and Mineral Reserve Best Practice guidelines (2019). The estimate was supervised by John Sims, President of Sims Resources LLC, independent Competent Person and Qualified Person (CPG, AIPG).

3. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources have a lower level of confidence than Indicated Mineral Resources.

4. Constrained and diluted Mineral Resources are based on metal prices of US$3,300/oz Au and US$50/oz Ag and metallurgical recoveries of 96% Au and 91% Ag. AuEq g/t = Au g/t + (Ag g/t x (Ag price/Au price) x (Ag recovery/Au recovery)).

5. Reported within mining shapes generated using Datamine's Mineable Shape Optimizer (MSO) for long hole open stoping, diluted to a minimum 2 m shape width with 92% mining recovery and a total operating cost of US$97/t processed ($60/t incremental mining, $25/t processing, $10/t G&A, $2/t sustaining).

6. Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues. In the Company's opinion there is reasonable potential for both gold and silver to be extracted and sold.

LA DURA PROPERTY

The nearby 20 km² La Dura property, held under an exclusive four-year option to acquire 100%12, is a brownfield property with a database of mapping, sampling and drilling. The LiDAR survey13 revealed multiple historic workings, including the four-level high-grade La Dura mine, and an initial 1.5 km long, approximately 300 m wide mineralisation corridor. The aerial magnetic survey has been completed and interpreted, with key features identified for a field program. Drill planning and permitting continued during the quarter, with La Dura positioned as a ‘walk-up’ drill target for early 2027.

CORPORATE AND FINANCIAL SUMMARY

• Cash balance of A$4.1M at September 30, 2026 and Mithril remains debt free. 

• Mexican value added tax refunds of MXN3.5M (~A$270k) received in Mexico during the September 2026 quarter. 

• The Company released its Annual Report and Management Discussion and Analysis for the year ended June 30, 2026 on September 29, 202614. 

• The NI 43-101 Technical Report supporting the upgraded Target 1 MRE was filed on SEDAR+ on August 17, 2026. 

• Mithril presented at the Precious Metals Summit in Beaver Creek, Colorado (22–25 September 2026)15. 

• 4,258,700 unlisted securities with an exercise price of $0.30 expired unexercised on September 5, 2026. 

Capital structure

As at 30 September 2026.

Exploration Expenditure

Exploration expenditure for the quarter was A$2.58M, focussed entirely on the Copalquin District and planning work for the La Dura property, both in Mexico.

Related Party Payments

In line with its obligations under ASX Listing Rule 5.3.5, Mithril Silver and Gold Limited notes that the only payments to related parties of the Company, as advised in the Appendix 5B for the period ended 30 September 2026, pertain to Director fees, employee salaries and consulting services (A$169k included in item 1 and A$12k included in item 2).

ASX Listing Rule 5.3.1, 5.3.2 and 5.3.3

Exploration activities and expenditure during the quarter are described above. There were no mining production or development activities during the quarter. Changes to tenement interests during the quarter are nil. Tenement and mining concession information is provided at the end of this report.

ASX ANNOUNCEMENTS RELEASED DURING THE SEPTEMBER 2026 QUARTER