Advance Metals Reports Outstanding Initial Drill Results at Gavilanes Silver Project, Mexico

Initial Gavilanes Drilling Confirms Extensive High-Grade Silver Intersections

Advance Metals initiated its first diamond drilling program at the Gavilanes Silver Project during the quarter, marking a key milestone in its Mexican silver growth strategy. The inaugural diamond drill hole, GV-26-001, aimed to test depth and strike extensions of the existing high-grade silver system and evaluate additional targets beyond known mineralisation. This represents the company’s first modern diamond drilling test of the deposit, enabling detailed geological analysis and core logging to support resource estimation.

GV-26-001 surpassed expectations by intersecting a broad zone of high-grade silver mineralisation, returning 33.9 metres at 220 grams per tonne silver from 117.6 metres depth, including a higher-grade 6.2-metre interval at 718 grams per tonne silver from 133 metres. This broad intersection highlights the scale and continuity of mineralisation at depth, validating Advance’s exploration model targeting downdip extensions of historically mapped high-grade zones and supporting the company’s strategy to expand the Gavilanes mineralised system.

Deeper Polymetallic Mineralisation Reveals Multi-Element Potential

Beyond the primary silver zone, GV-26-001 intersected deeper polymetallic mineralisation including silver, gold, copper, lead, and zinc, indicating a complex mineralising system. The hole returned 3.3 metres at 270 grams per tonne silver, 0.2 grams per tonne gold, 0.7% copper, 0.7% lead, and 1.1% zinc from 164.6 metres depth. Within this, a higher-grade 1.65-metre section graded 394 grams per tonne silver, 0.4 grams per tonne gold, 1.1% copper, 1.1% lead, and 1.7% zinc from 166.25 metres. The strongest assay recorded 0.9 metres at 467 grams per tonne silver, 0.6 grams per tonne gold, 1.4% copper, 1.4% lead, and 2.1% zinc from 169 metres downhole. These findings suggest a stacked or zoned mineralising system with economic potential across multiple metals.

Follow-Up Drilling Confirms Expanding High-Grade Silver and Copper-Gold Zones

After quarter-end, results from drill holes GV-26-002 and GV-26-003 further confirmed the expanding nature of the Gavilanes mineralised system. GV-26-002 intersected 8.4 metres at 245 grams per tonne silver from 90 metres, including 3 metres at 523 grams per tonne silver, followed by 54.6 metres at 0.6% copper, 22 grams per tonne silver, and 0.3 grams per tonne gold from 180 metres, demonstrating significant polymetallic mineralisation below the primary silver zones.

GV-26-003 delivered the project’s most substantial polymetallic interval to date, including 15.6 metres at 309 grams per tonne silver from 24 metres depth, with narrower intervals grading up to 569 grams per tonne silver. Deeper mineralisation included 37.5 metres at 83 grams per tonne silver, 0.8 grams per tonne gold, 0.6% copper, 0.6% zinc, and 0.3% lead from 205.8 metres, featuring a 5.5-metre section grading 160 grams per tonne silver, 2.3 grams per tonne gold, and 1.5% copper. These wide polymetallic zones indicate strong potential for economic extraction of multiple commodities.

Diamond Drilling Program Targets JORC Resource Upgrade in Q4 2026

The ongoing maiden diamond drilling program at Gavilanes comprises 15 to 18 holes totaling up to 4,500 metres, designed to support a JORC Mineral Resource estimate upgrade targeted for early Q4 2026. The comprehensive geological and assay data will underpin resource classification under JORC Code standards, transitioning Gavilanes from early-stage exploration to a defined resource project.

Integration of new diamond drilling results with historic core sampling and geological modelling will enhance confidence in mineralisation continuity and geometry. The planned Q4 resource upgrade is a critical value inflection point, potentially attracting investor interest and facilitating future financing. The robust scale and grades intersected in the initial drill holes suggest the resource could be significant at this early stage.

Progress Toward Full Ownership of Victorian Myrtleford and Beaufort Gold Projects

During the quarter, Advance advanced toward 100% ownership of the high-grade Myrtleford and Beaufort Gold Projects in Victoria, Australia, through an amended agreement with 1548043 B.C. Ltd. These projects are key gold assets in the company’s portfolio, complementing its precious metals focus across Mexico and Australia. Full ownership eliminates external interests, allowing Advance to capture all upside from exploration and development success.

The amended agreement reflects confidence in asset quality, supported by recent exploration and metallurgical testwork results. Full control enables Advance to direct future drilling, resource estimation, and development activities without minority interest constraints, streamlining capital allocation and supporting future financing discussions.

Happy Valley Gold Testwork Indicates Low-Cost Processing Potential

Gravity recoverable gold testwork at Happy Valley, part of the Myrtleford and Beaufort portfolio, showed gold recoveries up to 96.1%, highlighting potential for low-cost gravity-based processing. Gravity separation offers lower capital and operating costs compared to alternative methods, suggesting economic development options if sufficient tonnage and grade are defined.

Recent drilling at Happy Valley returned high-grade gold results, including 1 metre at 22.3 grams per tonne gold from 95.7 metres, with a narrower 0.2 metre interval grading 108.5 grams per tonne gold. These results, combined with strong gravity recoveries, support the potential for a high-grade gold operation with efficient processing. A 3D geological model provides a framework for targeting additional mineralisation extensions.

Regional Exploration Advances at Historic Victorian Workings

Advance has initiated regional mapping and rock chip sampling across historic workings at Myrtleford and Beaufort, focusing on the 16-kilometre Magpie Barwidgee trend, where modern drilling has yet to be conducted. This systematic exploration aims to identify drill targets in areas with historical mining but limited modern data, with rock chip sampling characterising surface mineralisation and prioritizing zones for follow-up drilling.

The Magpie Barwidgee trend represents a significant exploration opportunity with known mineralisation but no drilling legacy. This approach reduces exploration risk by targeting historically mineralised zones and supports development of a drill target pipeline across Victorian projects, focusing on high-confidence prospects.

Advance Positioned for Continued Exploration Success Through Late 2026

Advance Metals’ Managing Director and CEO, Dr Adam McKinnon, stated the quarter marked a pivotal phase as maiden drilling commenced at Gavilanes with excellent initial results. The broad high-grade silver intercepts in GV-26-001 underpin the planned JORC resource upgrade. He also highlighted progress in the Victorian gold portfolio, moving toward full ownership following strong drilling and gravity recovery outcomes at Happy Valley, supporting a potential high-grade gold opportunity with low-cost processing.

With active drilling in Mexico and ongoing target generation in Victoria, Advance is set to deliver consistent exploration news flow through the second half of 2026. The Mexican drilling program offers near-term updates, while Victorian asset development supports medium-term value creation. The planned Q4 2026 JORC resource upgrade at Gavilanes is a key upcoming catalyst, complemented by advancement of Myrtleford, Beaufort, and Happy Valley projects. This diversified portfolio across two jurisdictions and multiple commodities provides exposure to both silver and gold upside, with multiple value creation pathways through 2026 and beyond.