Megado Minerals Advances High-Grade Copper and Silver Exploration in Spain’s Extensive District-Scale Projects

Iberian Copper Project: Extensive Sedimentary Copper-Silver Systems Spanning 185 Kilometres

The Iberian Copper Project offers a large-scale sedimentary copper-silver exploration opportunity across 777 square kilometres of prospective stratigraphy within a well-known copper belt in Spain. Historical mining records document copper workings extending over 185 kilometres east-west, including 12 historical mines and 50 additional mineral occurrences throughout the district. The geological environment corresponds to a sedimentary "Red Bed" or Lisbon Valley-style copper-silver system, a proven mineralisation type that has supported commercial mining in similar geological settings.

Exploration targets include both copper oxide and sulphide mineralisation, with rock chip assay results from historical waste and ore samples indicating grades exceeding 5% copper and 100 grams per tonne silver. The extensive strike length and historical mining footprint provide a robust framework for exploration planning. Near-mine exploration is a priority, enabling evaluation of mineral potential both along strike and at depth within the established mining district. The large landholding offers scale and flexibility for phased exploration across multiple mineralised horizons and geographic zones.

Alpartir Project: Silver-Dominant Vein System Extending Over 36 Kilometres

The Alpartir Project represents Megado Minerals’ second major exploration focus, covering 576 square kilometres and targeting a silver-copper-antimony vein system documented over at least 36 kilometres of vein-controlled mineralisation. Historical mining includes 31 documented mines and 65 mineral occurrences along the vein network, reflecting sustained historical mining activity across a broad area. The project is secured under a five-year option agreement, providing tenure for systematic exploration and evaluation.

Rock chip assays from ore and waste samples linked to historical workings indicate silver grades exceeding 1,000 grams per tonne and copper grades above 5%, characteristic of precious metal-dominant vein systems that have historically supported high-grade silver mining in the region. The vein-controlled mineralisation style offers significant near-mine exploration upside, with historical workings and tailings providing direct evidence of mineralised structures suitable for follow-up drilling and sampling. Exploration potential extends both along strike and at depth, with ample opportunity to expand the known vein network across the landholding.

Geological and Regulatory Advantages within Spain’s Mineral Resource Framework

Both projects benefit from Spain’s formal recognition of copper and silver as strategic minerals within its mineral resource development policies. Copper is listed under the European Union Critical Raw Materials Act 2024, underscoring its vital role in energy transition technologies, digital infrastructure, and the green economy. The Spanish Mineral Raw Materials Plan 2025–2029 further supports domestic exploration and development of copper and other critical minerals, creating a favourable environment for exploration companies operating in Spain.

Market conditions support demand for both metals targeted by Megado’s projects. Silver demand is expected to remain strong, driven by industrial applications, renewable energy technologies, and investment interest. Copper and silver are critical to electrification, renewable energy deployment, battery manufacturing, and digital technologies essential to the energy transition. Current supply-demand dynamics for copper remain favourable for exploration and development of near-surface, high-grade deposits with economical extraction potential. Megado’s projects’ strategic location within Spain’s mineral resource framework and proximity to established mining infrastructure provide significant advantages for project advancement.

Historical Mining Records and Rock Chip Assay Highlights

The exploration rationale for both Megado projects is underpinned by extensive historical mining records and rock chip assay data from waste and ore samples associated with historical workings. Collectively, the Iberian Copper Project’s 12 historical mines and 50 mineral occurrences, alongside the Alpartir Project’s 31 mines and 65 occurrences, represent 43 documented historical mines and 115 mineral occurrences across the company’s Spanish landholdings.

Assay results demonstrate the potential for high-grade mineralisation, with copper grades exceeding 5% and silver grades over 100 grams per tonne at the Iberian Copper Project, and silver grades surpassing 1,000 grams per tonne with copper greater than 5% at Alpartir. While these results derive from historical samples requiring confirmation through systematic exploration—including sampling, mapping, and drilling—they provide a strong foundation for near-mine exploration targeting extensions and depth extensions of known mineralised zones.

Capital Structure and Financial Position

Megado Minerals has a capital structure consisting of 720.7 million ordinary shares and 370 million performance rights and options on a fully diluted basis, totaling 1,171.2 million fully diluted shares outstanding as of the latest update. As of 21 July 2026, the company’s share price was $0.017, equating to an undiluted market capitalisation of $12.3 million and a fully diluted market capitalisation of $19.9 million. The company reported a pro forma cash balance of $2.95 million as of 21 April 2026, which includes proceeds from a $1.65 million placement completed during the quarter.

These financial resources support the capital-intensive nature of mineral exploration and enable the company to conduct systematic exploration across its large district-scale projects. Cash is allocated toward advancing exploration, corporate administration, and evaluating project development opportunities. The use of performance rights and options reflects Megado’s capital management and employee incentive strategies. Future funding needs will depend on exploration outcomes and the company’s ability to access capital markets.

Experienced Management and Technical Team

Megado’s management team brings extensive expertise in mineral exploration, corporate development, and capital markets. Executive Director Lachlan Rutherford holds a PhD, MBA, and Bachelor of Science with Honours, and is a member of the Australasian Institute of Mining and Metallurgy. With over 25 years of experience, Rutherford has worked on critical mineral projects in Spain and Finland and has significant venture capital, corporate development, and project management experience. Non-Executive Director Bradley Drabsch holds a Bachelor of Science with Honours in Geology, is a member of the Australian Institute of Geoscientists, and has over 23 years in mineral exploration, including leadership roles and founding exploration companies.

Finance Director and Company Secretary Aaron Bertolatti is a chartered accountant with more than 18 years of mining and accounting experience, including senior financial leadership in Australian and international markets. Independent Non-Executive Director Adrien Wing brings over 25 years of corporate experience in audit and advisory roles. Collectively, the team’s expertise in exploration, project development, governance, and capital markets equips Megado to execute its exploration strategy and manage regulatory requirements in Spain.

Competent Person Review and Compliance with Technical Standards

Exploration results and technical data in the company update have been compiled and reviewed by qualified professionals adhering to industry standards for competent person declarations. Independent geological consultant Mr Fernando Palero, a Member of the European Federation of Geologists, has reviewed exploration results and possesses relevant experience in the mineralisation styles and deposit types under consideration. Executive Director Lachlan Rutherford, a member of the Australasian Institute of Mining and Metallurgy, also has pertinent expertise in exploration geology and deposit evaluation.

Both professionals meet the criteria as Competent Persons under the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Their involvement ensures technical accuracy and compliance with reporting standards. Mr Palero and Mr Rutherford have consented to the inclusion of exploration results in the company update as presented.

Near-Mine Exploration Potential and Extension Opportunities

A key element of Megado’s exploration strategy is targeting near-mine opportunities within and adjacent to the extensive historical workings across both projects. The concentration of historical mines and mineral occurrences provides a framework for prioritising exploration targets where mineralisation is confirmed and geological data is established. Near-mine exploration typically carries lower technical risk compared to greenfield ventures and leverages historical data to focus drilling and sampling on high-probability targets.

Exploration potential exists both along strike and at depth within the mining districts. The Iberian Copper Project’s mineralisation extends over 185 kilometres, while the Alpartir Project’s vein system covers at least 36 kilometres, offering substantial scope for discovering extensions to known mineralised zones. Depth potential remains largely unexplored, as historical mining focused on oxide zones and upper sulphide levels accessible with past technology and economics. Modern exploration techniques and improved economics may enable discovery of deeper mineralisation at viable mining depths.

Strategic Metal Demand and Energy Transition Implications

Copper and silver, the primary metals targeted by Megado’s Spanish projects, play critical roles in the global energy transition, digital technology deployment, and the green economy. Copper is vital for electrical conductivity and efficiency in renewable energy systems such as wind turbines, solar photovoltaic installations, and grid infrastructure necessary for large-scale renewable energy distribution. The European Union’s designation of copper as a critical raw material under the 2024 Critical Raw Materials Act highlights its strategic importance for European industrial competitiveness and energy security. Expanding battery manufacturing for electric vehicles and grid-scale energy storage further drives copper demand as electrification accelerates worldwide.

Silver demand similarly benefits from renewable energy and digital technology trends, with growing applications in photovoltaic cells, battery technologies, and electronics manufacturing. Industrial demand remains strong across jewellery, investment, and manufacturing sectors. Market dynamics for copper and silver support exploration and capital investment in projects targeting near-surface, high-grade deposits with economical extraction potential. Megado’s projects’ strategic location within Spain’s mineral resource framework and focus on metals essential to the energy transition align with policy support and favourable commodity demand trends.

Exploration Risks and Uncertainties

As an exploration-stage company, Megado Minerals faces inherent risks associated with mineral exploration and the progression of projects to mineral resources and reserves. The company currently holds no JORC Code-compliant mineral resources or ore reserves. Exploration results, including rock chip assays and historical mining data, do not constitute mineral resources and involve significant uncertainties regarding grade, continuity, and economic viability.

Megado’s limited operating history in mineral extraction and absence of revenue from mining activities present material risks to business execution and financing. Substantial additional capital will be required to advance exploration and develop projects toward production. Access to funding depends on commodity prices, investor sentiment, and positive exploration outcomes. Geological uncertainties related to mineralisation extent, grade distribution, and economic feasibility remain inherent. Regulatory approvals, permitting, environmental assessments, and social acceptance are further requirements for project advancement.