Metalsource Mining Uncovers 2.4 km of Prime Drill Targets at Silver Hill, North Carolina

Induced Polarization Survey Broadens Exploration Targets at Silver Hill

Metalsource Mining announced the completion of a Phase 2 induced polarization survey aimed at pinpointing drill targets along strike from the historic Silver Hill mine in Davidson County, North Carolina. The survey delineated roughly 2.4 kilometres of prospective strike length across two main target zones. The most notable is a continuous 1.8 kilometre chargeability anomaly in the southern part of the property adjacent to the historic Silver Hill workings. Additionally, a 600 metre IP anomaly was detected in the northeast corner, significantly expanding the company’s exploration pipeline beyond the historic mine area.

This discovery marks a significant advancement in the Silver Hill exploration program. Moving beyond traditional drilling based solely on geological intuition, the company now utilizes a geophysically defined framework for systematic district-wide exploration. The results indicate that mineralization extends well beyond historic mining footprints, supporting management’s evolving geological model that Silver Hill hosts multiple mineralized zones rather than a single deposit.

Geophysical Signatures Correlate with High-Grade Drill Results

The newly identified IP targets exhibit geophysical traits closely matching the mineralized corridor revealed by recent drilling. Elevated chargeability values above 20 milliseconds suggest the presence of metallic sulphide minerals, while resistivity measurements differentiate the silicified host rock (1,500 to 4,000 ohm-m) from both the conductive weathered saprolite at surface and the highly resistive volcanic rocks (>5,000 ohm-m). This dual-parameter approach enables prioritization of anomalies based on sulphide content and host rock environment, targeting mineralization at the contact between volcanic flows and silicified host rocks.

The company’s interpretation indicates these geophysical signatures align with drill holes returning high-grade polymetallic mineralization, reducing exploration risk and guiding prioritization of the 2.4 kilometres of anomalies. Targets remain open to the north and south of the historic mine, broadening the exploration pipeline and creating multiple discovery opportunities.

Recent Drilling Confirms Significant Polymetallic Mineralization

Drilling at Silver Hill has confirmed substantial metal content within the target horizon. Intervals up to 18 metres have yielded composite assays of up to 209 g/t gold, 241 g/t silver, 18.8% lead, 39.4% zinc, and 5.4% copper. These results underpin the geophysical targeting strategy and validate the use of IP surveys to identify additional mineralized zones.

Drilling has tested multiple depths and orientations, with varying widths and grades depending on location. Notably, one interval returned 209.1 g/t gold and 93.6 g/t silver over 2.74 metres, while another intersected 241.0 g/t silver with 16.6% lead and 34.6% zinc over 0.91 metres. These assays highlight the economic potential and justify accelerating exploration efforts.

Transitioning from Historic Mining to Modern District-Scale Exploration

The Silver Hill property, historically America’s first silver-producing mine dating back to 1839, covers 1,225 acres underlain by Neoproterozoic and Cambrian volcaniclastic and volcano-sedimentary rocks. The company benefits from extensive historic data including drillhole records, underground mapping, dumps, and chip samples, providing valuable context for modern exploration. Current interpretations suggest the Carolina Terrane hosting Silver Hill is an extension of the Avalon Terrane.

Metalsource is shifting from asset ownership to systematic modern exploration, transforming Silver Hill into a district-scale opportunity through advanced geological modeling, systematic drilling, and geophysical techniques. The IP survey results deliver a property-scale framework to prioritize drilling and optimize exploration capital. Management believes combining drilling, geophysics, and structural analysis will unlock district potential and advance toward a modern resource estimate.

Expanding Drilling Capacity to Accelerate Exploration

Management is progressing plans to increase drilling capacity to pursue two parallel strategies: expanding the known Silver Hill deposit and testing newly identified high-priority targets from the Phase 2 IP survey. This dual approach reflects confidence in both expanding known mineralization and exploring new targets. Several assay results remain pending from completed holes, providing ongoing exploration catalysts.

Joe Cullen, CEO of Metalsource Mining, emphasized the strategic importance of the survey results, calling the quality of identified targets a major validation of the exploration thesis. He noted that selecting initial drill targets is challenging due to the abundance of quality opportunities. The company plans to aggressively test these targets soon and is exploring strategic options to enhance systematic exploration of the broader Silver Hill district.

Pending Assays and Upcoming Exploration Catalysts

Several drill assays are outstanding, representing near-term catalysts that could further validate the exploration model or reveal additional high-grade mineralization warranting accelerated follow-up. The timing and results of these assays will influence investor perception and future drilling priorities.

Follow-up drilling will focus on the highest-ranking IP anomalies exhibiting characteristics similar to successful drilling corridors. This disciplined approach optimizes exploration capital compared to conventional methods. Ongoing drilling, IP surveys, and geological interpretation will refine understanding of Silver Hill and evaluate extensions along strike, down dip, and beyond historic mine limits.

Robust Quality Assurance and Analytical Testing Protocols

Metalsource enforces strict quality assurance and control protocols, inserting certified reference materials, blanks, and duplicates into the sample stream to ensure data integrity. Drill core is halved with a diamond saw; one half is sent to the laboratory while the other remains onsite for verification. Chain of custody is maintained throughout.

Samples are analyzed by ALS Geochemistry in Reno, Nevada, and ALS Canada in Vancouver, British Columbia. The protocol includes crushing to 70% passing 2 mm, pulverizing a 250 g split to 85% passing minus 75 microns, and performing a four-acid digest on 0.25 g of sample. Analysis uses ICP-AES, ICP-MS, and fire assay methods. Results are preliminary and insufficient to define a mineral resource; further drilling is needed to determine mineralization continuity, geometry, and grade distribution.

Metallurgical Basis and Silver Equivalent Calculations

Silver equivalent values are calculated using 200-day moving average metal prices as of February 6, 2026, in US dollars: gold at $124.5/g, silver at $1.58/g, copper at $4.9/lb, lead at $0.90/lb, and zinc at $1.11/lb. Metallurgical recoveries from 1988 batch testing—95.5% gold, 92.9% silver, 89.2% lead, 93.8% zinc, and 90.8% copper—are applied in the calculations. Reported individual metal values are composites not adjusted for recovery; recoveries apply only to silver equivalent computations.

The use of 1988 metallurgical data reflects the property’s historic processing background. Metalsource acknowledges that updated metallurgical testing may be required for future resource definition and development. The silver equivalent metric facilitates comparison of polymetallic intersections but depends on assumed metal prices and recovery rates and should be considered illustrative.

Additional Exploration at Byrd-Pilot Mountain Project

Beyond Silver Hill, Metalsource holds interests in the Byrd-Pilot Mountain Project in central North Carolina’s Carolina Terrane. USGS surveys from the 1980s identified the area as prospective for a porphyry gold-copper system. Company exploration has revealed broad gold mineralization in soils, trenches, and shallow drilling coinciding with strong self-potential anomalies. Geological features include intense quartz-sericite-pyrite alteration, high-sulphidation signatures, and high-alumina minerals, indicating potential for a large epithermal or porphyry gold system similar to the Haile and Brewer deposits to the south.

Geological modeling shows an east-west mineralization trend at Byrd-Pilot Mountain that remains open in multiple directions, with oxidation noted to depths of about 30 metres. The Meridian discovery zone has not been drilled since the 1980s, suggesting significant resource expansion potential. The company is positioned to advance work under existing agreements, providing a secondary exploration focus alongside Silver Hill.