Metalsource Mining Boosts Silver Hill Drilling Capacity Threefold with Second Rig and Night Shift Launch

Strategic Expansion Signals Major Advancement in Silver Hill Exploration

Metalsource Mining's announcement on July 21, 2026, reveals a significant escalation in drilling capacity at Silver Hill, reflecting the company’s view that the project has outgrown single-rig operations. This expansion enables Metalsource to pursue two complementary exploration goals concurrently for the first time in its history.

The move follows recent drilling successes that confirmed a high-grade polymetallic system containing silver, gold, lead, zinc, and copper mineralization along a corridor open along strike and down plunge. Management attributes the expansion to a growing pipeline of high-quality targets generated from a recently completed property-scale induced polarization survey.

Dual-Track Exploration to Define Resources and Discover New Targets

The existing drill rig will continue systematic expansion drilling to delineate the high-grade polymetallic system, supporting the company’s goal of delivering an inaugural mineral resource estimate by early 2027. This represents a natural progression from exploration to formal resource definition.

The newly added drill rig will focus on testing newly identified high-priority exploration targets across the broader Silver Hill district. These targets, identified through the induced polarization survey, share geophysical signatures similar to areas with significant mineralization, reflecting a strategic shift toward uncovering additional discovery potential beyond the known system.

Tripling Drilling Capacity via Second Rig and Night Shift Operations

The approximately threefold increase in drilling capacity is achieved by adding a second diamond drill rig and introducing dedicated night shift operations, enabling continuous drilling and maximizing rig utilization. The new rig and expanded crew are scheduled to mobilize in early August 2026, marking one of the most substantial exploration expansions at Silver Hill in recent years.

Induced Polarization Survey Identifies High-Priority Targets

The expansion is grounded in technical work, notably a property-scale induced polarization survey that pinpointed multiple high-priority exploration targets exhibiting geophysical traits analogous to areas with strong drill results. This modern geophysical approach complements the historic mining district’s legacy and guides systematic testing of new areas.

Silver Hill, historically America’s first silver mine with production dating back to 1839, benefits from extensive historic data including drillhole records, underground mapping, and sampling accumulated over 150 years. Metalsource integrates this historic information with contemporary geophysics and drilling to apply advanced 21st-century exploration techniques.

Inaugural Mineral Resource Estimate Expected by Early 2027

Metalsource targets early 2027 for its inaugural mineral resource estimate at Silver Hill, marking a pivotal transition from exploration to formal resource definition under National Instrument 43-101 standards. The expansion drilling is critical to gathering the data necessary to support this milestone.

Known mineralization extends to 550 metres from surface in steeply dipping lenses that remain open in multiple directions. The expanded drilling program aims to further define the mineralization’s geometry and extent to underpin the resource estimate.

Ongoing Assay Results to Sustain Exploration Momentum

Multiple assay results are pending from the ongoing program, providing a steady flow of technical updates as drilling progresses. This continuous disclosure offers investors transparency on exploration advancements and progress toward key milestones like the resource estimate.

Silver Hill Project Overview and Historical Significance

The 1,225-acre Silver Hill Project is located in Davidson County, North Carolina, within the Carolina Terrane. The property features volcaniclastic and volcano-sedimentary rocks of Neoproterozoic and Cambrian age, interpreted as an extension of the Avalon Terrane, hosting the high-grade polymetallic mineralization under evaluation.

Silver Hill’s historic significance as the site of America’s first silver mine is supported by extensive datasets spanning over 150 years, including drillhole data, underground mapping, and sampling from historic dumps and workings. This historic data complements Metalsource’s modern exploration and geological modeling efforts.

Management Highlights Confidence in District-Scale Potential

CEO Joe Cullen emphasized the expansion as a milestone reflecting the company’s evolved understanding of the Silver Hill district. He noted the growing pipeline of high-priority targets with characteristics similar to the known mineralized corridor, justifying the need for increased drilling capacity.

Cullen described the dual-track strategy as transformational, enabling simultaneous resource definition and new discoveries for the first time in company history, potentially accelerating shareholder value creation.

Technical Review and Qualified Person Confirmation

All technical information has been reviewed and approved by Darcy Vis, B.Sc., P.Geo., President of Tripoint Geological Services Ltd., a contractor and Qualified Person as defined by National Instrument 43-101. This ensures compliance with regulatory standards for public disclosure in Canadian securities markets.

The involvement of an independent Qualified Person reflects established regulatory practices for mineral exploration companies, providing transparency and validation of the technical data disclosed.