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

Phase 2 IP Survey Expands Silver Hill’s Target Pipeline

Metalsource Mining’s Phase 2 induced polarization survey at Silver Hill has significantly broadened the exploration pipeline, identifying about 2.4 kilometres of prospective strike length across two primary target zones. The largest is a continuous 1.8 kilometre anomaly in the southern project area near Silver Hill, while a separate 600 metre IP anomaly was detected in the property’s northeast corner.

These expanded target zones mark a major advancement in understanding the Silver Hill district. The newly identified targets remain open to the north and south of the historic mine, considerably enlarging the exploration pipeline and supporting management’s updated geological model that Silver Hill likely contains multiple mineralized occurrences rather than a single historic deposit.

Geophysical Data Supports Exploration Strategy

The Phase 2 IP survey’s high-priority drill targets show geophysical characteristics analogous to the mineralized corridor established by recent drilling, reinforcing confidence in the company’s targeting approach. At Silver Hill, combining IP chargeability and resistivity data offers two complementary signals that help rank anomalous zones by sulphide content and host rock environment.

Metalsource interprets elevated chargeability values above 20 milliseconds as indicative of metallic sulphide minerals. Resistivity values between 1,500 and 4,000 ohm-meters differentiate the silicified host rock from both the conductive weathered saprolite near surface and the highly resistive volcanic package exceeding 5,000 ohm-meters. This dual-parameter method enables identification of mineralization at the favorable contact between volcanic flows and silicified host rocks—the same setting where recent drilling encountered significant polymetallic mineralization.

Drilling Confirms Significant Metal Concentrations

Exploration drilling to date at Silver Hill has revealed substantial metal content within the target horizon. Drilling has intercepted mineralization over intervals up to 18 metres, with composite assay results reaching 209 g/t gold, 241 g/t silver, 18.8% lead, 39.4% zinc, and 5.4% copper. This consistent polymetallic mineralization validates Silver Hill as an ideal candidate for electrical geophysics and underpins the company’s evolving exploration model.

Notable drill results include hole SH26-07, which returned 46.5 g/t gold, 42.3 g/t silver, 1.4% lead, 3.3% zinc, and 0.1% copper over 12.62 metres, including a higher-grade interval of 84.0 g/t gold and 54.8 g/t silver over 6.95 metres. Additionally, hole SH26-05 yielded 2.2 g/t gold and 241.0 g/t silver over 0.91 metres. These results support the geophysical targeting method and confirm that the Phase 2 IP anomalies are situated within geologically and economically promising zones.

Multiple Mineralized Zones Indicate District-Scale Potential

Metalsource’s exploration thesis continues to be validated, with mineralization remaining open in all directions at Silver Hill. There are significant opportunities to increase scale through on-strike and down-dip drilling. The company’s updated geological model suggests Silver Hill comprises multiple mineral occurrences rather than a single historic deposit, creating potential to expand the system both along strike and down dip.

This shift in perspective moves the company from focusing solely on a single deposit to a district-scale exploration approach, recognizing multiple mineralization centers. The 2.4 kilometres of newly identified targets provide a systematic framework for focused drilling campaigns to independently evaluate each anomaly.

Plans to Boost Drilling and Accelerate Exploration

Management is advancing plans to increase drilling capacity to expand the known Silver Hill deposit while testing new high-priority targets concurrently. The strategy involves running one drill program to systematically grow the known deposit alongside additional drilling targeting the newly identified anomalies. The company notes that deciding where to drill first is challenging due to the quality of available opportunities.

The ramp-up in drilling is expected to generate multiple exploration catalysts in the near to medium term. Several assay results are pending from completed holes, promising ongoing news flow as the program progresses. Follow-up drilling will prioritize the highest-ranking IP anomalies exhibiting characteristics similar to successful previous drilling.

Silver Hill Project Location and Historical Significance

Silver Hill is situated on a 1,225-acre property in Davidson County, North Carolina, within the Carolina Terrane. The site is underlain by Neoproterozoic and Cambrian volcaniclastic and volcano-sedimentary rocks. Historically, Silver Hill is known as the location of America’s first significant silver discovery and first silver-producing mine, with operations dating back to 1839. The property benefits from an extensive historic dataset including drillhole data, underground mapping, historic dumps, and chip samples collected over more than 185 years of intermittent exploration and production.

Known mineralization extends to 550 metres from surface within steeply dipping lenses that remain open in multiple directions. Combining modern exploration techniques with this historically significant data offers Metalsource a unique opportunity to systematically reassess and expand Silver Hill’s resource potential under current exploration and resource estimation standards.

Quality Assurance and Laboratory Procedures

Metalsource adheres to strict quality assurance and control protocols throughout its exploration. Certified reference materials (standards), blanks, and duplicates are inserted into the sample stream. Drill core is halved using a diamond saw, with one half sent to the laboratory and the other retained on site for verification.

ALS Geochemistry in Reno, Nevada, and ALS Canada in Vancouver, British Columbia, conduct analytical testing. Samples are crushed to 70% passing 2 mm mesh, with a 250-gram split pulverized to 85% passing minus 75 microns. A four-acid digest on 0.25 grams of sample dissolves most geological materials, followed by ICP-AES, ICP-MS, and fire assay analyses. Chain of custody is maintained from drilling through laboratory submission.

Upcoming Exploration Catalysts and Strategic Focus

Several exploration catalysts and strategic priorities are expected to provide news flow soon. Multiple assays remain outstanding from completed drill holes, supporting continued updates as the program advances. The company plans to focus follow-up drilling on the highest-ranking IP anomalies analogous to successful prior drilling. Ongoing drilling, IP surveys, and geological interpretations will refine understanding of Silver Hill and evaluate opportunities to extend mineralization along strike, down dip, and beyond the historic footprint.

Beyond immediate exploration, management is assessing strategic options to enhance systematic exploration and unlock Silver Hill’s broader district potential. The company is entering a new exploration phase focused on expanding known mineralization and systematically evaluating the district for additional discoveries. This strategy, supported by the geophysical framework and pending assay results, aims to build district-scale value at Silver Hill.

Exploration Results Assessment and Limitations

Investors should note the exploration results are preliminary and insufficient to define a mineral resource. Further drilling is required to determine mineralization continuity, geometry, and grade distribution. Newly identified IP targets, while geophysically analogous to high-grade zones, remain exploration targets until drill tested. The immediate impact on share price is unclear from public information.

At release, assay results are pending from several drill holes, potentially providing material updates. Silver equivalent values disclosed use metal prices and recoveries that may change; metal prices are based on 200-day moving averages as of February 6, 2026, and recoveries derive from 1988 metallurgical testing, which may not reflect future performance or market conditions.