Mithril Confirms High-Grade and Widespread Silver and Gold at Target 3, Copalquin Project

Hole ID

From (m)

To (m)

Interval (m)

Au g/t

Ag g/t

AuEq g/t

Target 5

MA26-001*

122.80

123.65

0.85

6.20

764.0

17.11

MA26-001*

169.45

170.20

0.75

1.16

18.1

1.42

Target 3

JA26-002

29.35

29.95

0.60

0.14

10.9

0.30

JA26-002

35.00

36.00

1.00

0.16

7.6

0.26

JA26-002

36.00

36.50

0.50

0.95

120.0

2.67

JA26-002

92.00

93.35

1.35

0.33

0.5

0.34

JA26-002*

155.45

156.35

0.90

2.79

151.0

4.95

JA26-003

57.45

58.45

1.00

0.23

1.2

0.25

JA26-003

69.65

70.50

0.85

0.26

5.2

0.33

JA26-004

27.95

29.45

1.50

0.38

3.3

0.42

JA26-004

34.70

36.80

2.1

0.12

18.4

0.38

JA26-004*

102.50

103.00

0.50

6.91

475.0

13.70

JA26-006*

54.50

55.15

0.65

1.12

17.8

1.37

GU26-001

6.70

7.70

1.00

0.27

1.2

0.29

GU26-001

25.70

26.70

1.00

0.16

17.0

0.40

GU26-001

74.30

75.00

0.70

1.02

68.4

2.00

GU26-001

79.50

80.00

0.50

0.50

1.5

0.52

GU26-002*

134.95

135.45

0.50

33.20

5.9

33.28

GU26-003

19.20

20.20

1.00

0.69

0.9

0.70

GU26-003

20.20

21.20

1.00

0.29

2.1

0.32

GU26-003

19.20

21.20

2.00

0.49

1.5

0.51

GU26-003*

68.65

69.15

0.50

0.76

27.7

1.16

GU26-004

11.10

11.60

0.50

0.28

1.2

0.30

GU26-004

31.75

33.50

1.75

0.41

0.3

0.41

GU26-004

33.50

34.00

0.50

0.37

0.9

0.38

GU26-004

62.30

62.80

0.50

0.80

0.7

0.81

GU26-004

67.35

68.00

0.65

0.20

6.7

0.30

GU26-004

68.00

69.20

1.20

0.54

21.2

0.84

GU26-004*

75.85

76.40

0.55

1.24

6.1

1.33

GU26-004

80.50

81.05

0.55

0.26

0.3

0.26

GU26-005

32.20

33.00

0.80

0.19

8.4

0.31

GU26-005

48.65

50.15

1.50

0.39

2.4

0.42

GU26-005

68.30

68.90

0.60

0.18

8.3

0.30

CS26-002

48.65

49.15

0.50

0.13

15.6

0.35

CS26-002

54.50

56.00

1.50

0.26

1.9

0.29

Hole ID

Easting

Northing

Elevation

Azimuth

Inclination

Depth (m)

Assays

(m)

(m)

(m)

(degrees)

(degrees)

Target 5

MA26-001

288986

2822914

751

210

-45

201

Received

Target 3

JA26-001

292606

2824793

1483.26

280

-60

351

Received

JA26-002

292538

2824809

1439.05

280

-55

189

Received

JA26-003

292478

2824666

1373.88

290

-55

201

Received

JA26-004

292395

2824625

1351.80

255

-55

120

Received

JA26-005

292395

2824627

1353.24

290

-55

132

Received

JA26-006

292502

2824738

1400.50

270

-55

177

Received

GU26-001

293060

2824415

1600.78

180

-60

234

Received

GU26-002

292992

2824386

1597.58

180

-70

213

Received

GU26-003

292992

2824386

1597.58

210

-60

258

Received

GU26-004

292952

2824397

1607.43

210

-65

150

Received

GU26-005

293105

2824383

1568.82

186

-60

132

Received

EM26-001

292675

2823937

1277.06

215

-55

270

Received

EM26-002

292676

2823938

1276.65

215

-75

279

Received

CS26-001

292514

2824490

1357.28

215

-60

207

Received

CS26-002

292996

2824278

1496.13

200

-60

126

Received

Tonnes

(kt)

Tonnes

(kt)

Gold

(g/t)

Silver

(g/t)

Gold Eq.* (g/t)

Gold

(koz)

Silver

(koz)

Gold Eq.* (koz)

El Refugio

Indicated

691

5.43

114.2

7.06

121

2,538

157

Inferred

1,447

4.63

137.1

6.59

215

6,377

307

La Soledad

Indicated

-

-

-

-

-

-

-

Inferred

278

4.12

228.2

7.38

37

2,037

66

Total

Indicated

691

5.43

114.2

7.06

121

2,538

157

Inferred

1,725

4.55

151.7

6.72

252

8,414

372

John Skeet

Managing Director and CEO

jskeet@mithrilsilvergold.com

+61 435 766 809

NIKLI COMMUNICATIONS

Corporate Communications

liz@mithrilsilvergold.com

nicole@mithrilsilvergold.com

Criteria

JORC Code explanation

Commentary

Sampling techniques

• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representativity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the Public Report.

• In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Drill core samples are cut lengthwise with a diamond saw. Intervals are nominally 1 m but may vary between 0.5 m to 1.5 m based on geologic criteria.

• The same side of the core is always sent to sample (left side of saw).

• Reported intercepts are calculated as either potentially underground mineable (100m down hole) or as potentially open-pit mineable (near surface).

• Potentially underground mineable intercepts are calculated as length weighted averages of material greater than or equal to 1 g/t AuEQ_70 allowing up to 2m of internal dilution.

• Potentially open-pit mineable intercepts are calculated as length weighted averages of material greater than or equal to 0.25 g/t AuEQ_70 allowing for up to 2m of internal dilution.

• Rock Sawn Channel samples underground and surface are collected with the assistance of a handheld portable saw. The channels are 2.5 to 3cm deep and 6-8 cm wide along continuous lines oriented perpendicular to the mineralized structure. The samples are as representative as possible

• Rock Sawn Channel surface samples were surveyed with a Handheld GPS then permanently mark with an aluminium tag and red colour spray across the strike of the outcrop over 1 metre. Samples are as representative as possible

• Rock Sawn Channel underground samples were located after a compass and tape with the mine working having a surveyed control point at the portal, then permanently marked with an aluminium tag and red colour spray oriented perpendicular to the mineralized structure. Samples are as representative as possible

• Soil sampling has been carried out by locating pre-planned points by handheld GPS and digging to below the first colour-change in the soil (or a maximum of 50 cm). In the arid environment there is a 1 - 10 cm organic horizon and a 10 - 30 cm B horizon above the regolith. Samples are sieved to -80 mesh in the field. Samples are collected on a 20 m x 50 m grid or every 20 m on N-S lines 50 m apart. These samples are considered representative of the medium being sampled and lines are appropriately oriented to the nearly E-W structural trend.

Drilling techniques

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• Drilling is done with MP500 man-portable core rigs capable of drilling HQ size core to depths of 350-400m (depending on ground conditions), reducing to NQ size core for greater depths. Core is recovered in a standard tube.

Drill sample recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• Drill recovery is measured based on measured length of core divided by length of drill run.

• Recovery in holes CDH-001 through CDH-025 and holes CDH-032 through CDH-077 was always above 90% in the mineralized zones. Detailed core recovery data are maintained in the project database.

• Holes CDH-026 through CDH-031 had problems with core recovery in highly fractured, clay rich breccia zones.

• There is no adverse relationship between recovery and grade identified to date.

Logging

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• The total length and percentage of the relevant intersections logged.

• Geotechnical and geological logging of the drill core takes place on racks in the company core shed.

• Core samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Core logging is both qualitative or quantitative in nature. Photos are taken of each box of core before samples are cut. Photos of cut core intervals are taken after sampling. Core is wetted to improve visibility of features in the photos.

• All core has been logged and photographed.

• Rock sawn channel samples are marked, measured and photographed at location

• Soil samples are recorded at location, logged and described

Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter, half or all core taken.

• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representativity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• Core is sawn and half core is taken for sample.

• Samples are prepared using ALS Minerals Prep-31 crushing, splitting and pulverizing. This is appropriate for the type of deposit being explored.

• Visual review to assure that the cut core is ½ of the core is performed to assure representativity of samples.

• Crushed core duplicates are split/collected by the laboratory and submitted for assay (1 in 30 samples)

• Sample sizes are appropriate to the grain size of the material being sampled.

• Rock sawn channel samples and soil samples are prepared using ALS Minerals Prep-31 crushing, splitting and pulverizing. This is appropriate for the type of deposit being explored.

Quality of assay data and laboratory tests

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

• Samples are assayed for gold using ALS Minerals Au-AA25 method a 30 g fire assay with an AA finish. This is considered a total assay technique.

• Samples are assayed for silver using ALS Minerals ME-ICP61 method. Over limits are assayed by silverOG63 and silverGRAV21. These are considered a total assay technique.

• Standards and blanks are inserted at a rate of one per every 25 samples and one per every 40 samples, respectively. Pulp duplicate sampling is undertaken for 3% of all samples (see above). External laboratory checks will be conducted as sufficient samples are collected. Levels of accuracy (ie lack of bias) and precision have not yet been established.

• Certified Reference Materials - Rock Labs and CDN CRMs have been used throughout the project including, low (~2 g/t Au), medium (~9 g/t Au) and high (~18g/t Au and ~40 g/t Au). Results are automatically checked on data import into the BEDROCK database to fall within 2 standard deviations of the expected value.

• Samples with significant amounts of observed visible gold are also assayed by AuSCR21, a screen assay that analyses gold in both the milled pulp and in the residual oversize from pulverization. This has been done for holes CDH-075 and CDH-077.

Verification of sampling and assaying

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Discuss any adjustment to assay data.

• The verification of significant intersections by either independent or alternative company personnel has not been conducted. A re-assay programmeof pulp duplicates is currently in progress.

• MTH has drilled one twin hole. Hole CDH-072, reported in the 15/6/2021 announcement, is a twin of holes EC-002 and UC-03. Results are comparable.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols are maintained in the company's core facility.

• Assay data have not been adjusted other than applying length weighted averages to reported intercepts.

Location of data points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Specification of the grid system used.

• Quality and adequacy of topographic control.

• Drill collar coordinates are currently located by handheld GPS. Precise survey of hole locations is planned. Downhole surveys of hole deviation are recorded using a Reflex Multishot tool for all holes. A survey measurement is first collected at 15 meters downhole, and then every 50 meters until the end of the hole. Locations for holes have been surveyed with differential GPS to a sub 10 cm precision.

• UTM/UPS WGS 84 zone 13 N

• High quality topographic control from LiDAR imagery and orthophotos covers the entire project area.

Data spacing and distribution

• Data spacing for reporting of Exploration Results.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

• Data spacing is appropriate for the reporting of Exploration Results.

• The Resource estimation re-printed in this announcement was originally released on 17 Nov 2021

• No sample compositing has been applied.

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• Cut lines are marked on the core by the geologists to assure that the orientation of sampling achieves unbiased sampling of possible structures. This is reasonably well observed in the core and is appropriate to the deposit type.

• The relationship between the drilling orientation and the orientation of key mineralised structures is not considered to have introduced a sampling bias.

• Rock sawn channel samples are cut perpendicular to the observed vein orientation wherever possible

Sample security

• The measures taken to ensure sample security.

• Samples are stored in a secure core storage facility until they are shipped off site by small aircraft and delivered directly to ALS Global sample preparation facility in Chihuahua, Mexico. ALS airfreights the sample pulps to their assaying facility in North Vancouver, BC, Canada

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• A review with spot checks was conducted by AMC in conjunction with the resource estimate published 17 Nov 2021. Results were satisfactory to AMC.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• Concessions at Copalquin

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Previous exploration by Bell Coast Capital Corp. and UC Resources was done in the late 1990's and in 2005 - 2007. Work done by these companies is historic and non-JORC compliant. Mithril uses these historic data only as a general guide and will not incorporate work done by these companies in resource modelling.

• Work done by the Mexican government and by IMMSA and will be used for modelling of historic mine workings which are now inaccessible (void model)

Geology

• Deposit type, geological setting and style of mineralisation.

• Copalquin is a low sulfidation epithermal silver-gold deposit hosted in andesite. This deposit type is common in the Sierra Madre Occidental of Mexico and is characterized by quartz veins and stockworks surrounded by haloes of argillic (illite/smectite) alteration. Veins have formed as both low-angle semi-continuous lenses parallel to the contact between granodiorite and andesite and as tabular veins in high-angle normal faults. Vein and breccia thickness has been observed up to 30 meters wide with average widths on the order of 3 to 5 meters. The overall strike length of the semi-continuous mineralized zone from El Gallo to Refugio, Cometa, Los Pinos, Los Reyes, La Montura to Constancia and Santa Cruz is almost 7 kilometres. The southern area from south west of Apomal to San Manuel and to Las Brujas-El Peru provides additional exploration potential up to 6km.

Drill hole Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

• easting and northing of the drill hole collar
  • elevation or RL (Reduced Level - elevation above

• sea level in metres) of the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth

• hole length.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

See

in the announcement.

Data aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• Potentially underground mineable intercepts are calculated as length weighted averages of material greater than or equal to 1 g/t AuEQ_70 allowing up to 2m of internal dilution.

• Potentially open-pit mineable intercepts are calculated as length weighted averages of material greater than or equal to 0.25 g/t AuEQ_70 allowing for up to 2m of internal dilution.

• No upper cut-off is applied to reporting intercepts.

• Length weighted averaging is used to report intercepts. The example of CDH-002 is shown. The line of zero assays is a standard which was removed from reporting.

• 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 + ((silver grade/70) x (silver 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 are assumed to be equal (93%), Subsequent preliminary metallurgical test work produced recoveries of 91% for silver and 96% for gold (ASX Announcement 25 February 2022).

• For Rock Saw Channel Sampling and soil sampling in the Copalquin District, silver equivalent (AgEq) is determined using the formula: AgEq grade = silver grade + ((Au grade x 70) x (Au recovery/silver 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) fromkitco.com At this early stage, the metallurgical recoveries for Au and silver are assumed to be equal (93%) in the absence of metallurgical test work for Targets 2, 3, 4 and 5 material. In the Company's opinion there is reasonable potential for both gold and silver to be extracted and sold.

Relationship between mineralisation widths and intercept lengths

• These relationships are particularly important in the reporting of Exploration Results.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

• True widths at Refugio between sections 120 and 1,000 vary according to the hole's dip. Holes drilled at -50 degrees may be considered to have intercept lengths equal to true-widths, Holes drilled at -70 degrees had true widths approximately 92% of the reported intercept lengths and holes drilled at -90 degrees had true widths of 77% of the reported intercept lengths.

• True widths at La Soledad are not fully understood and downhole intercepts to date, are reported.

• At Las Brujas in Target 2, true widths are not yet known since we are still in the early stages of target definition.

• Rock sawn channel samples are cut perpendicular to the observed vein orientation wherever possible

Diagrams

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

See figures in announcement

Balanced reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• All exploration results are reported for intercepts greater than or equal to 0.1 g/t gold equivalent (gold plus silver at 70:1 price ratio for gold:silver).

Other substantive exploration data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• No additional exploration data are substantive at this time.

• Metallurgical test work on drill core composite made of crushed drill core from the El Refugio drill hole samples has been conducted.

• The samples used for the test work are representative of the material that makes up the majority of the Maiden Resource Estimate for El Refugio release on 17th November 2021.

• The test work was conducted by SGS laboratory Mexico using standard reagents and test equipment.

Further work

• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• The Company drilled 148 diamond core holes from July 2020 to July 2022 for 32,712 m. The Company has stated its target to drill up to 45,000m from July 2025 until the second half of 2026

• Diagrams are included in the announcements and presentations showing the drill target areas within the Copalquin District