Silver Hill
America's First Significant Silver Discovery
Davidson County, North Carolina — Approximately 1,300 Acres, Including Optioned Additions
September 16 results: SH26-22 returned 7.32 m at 261 g/t AgEq, including the 1.37 m interval above; SH26-23 returned 12.31 m at 140 g/t AgEq, including the 1.86 m interval above. Widths are core length; true widths are not established.
Current Results & Expansion Program — September 2026
On September 16, 2026, Metalsource reported new assays from SH26-22, SH26-23 and SH26-06 and described an expanded two-drill program. The company said ongoing step-out drilling was testing continuation into previously untested ground and that the second drill provided capacity to begin testing priority IP anomalies beyond the historic mine footprint.
- One drill was stepping out from known mineralization to test its continuation along strike and into previously untested ground
- Metalsource was preparing larger north and south step-outs to test the broader strike potential
- The second drill provided capacity to begin testing priority IP anomalies beyond the historic mine footprint
*Widths are core length; additional data is needed to estimate true widths. AgEq uses 200-day average prices as of February 6, 2026 (Au US$124.5/g, Ag US$1.58/g, Cu US$4.9/lb, Pb US$0.90/lb and Zn US$1.11/lb) and metal-specific recovery factors of Au 95.5%, Ag 92.9%, Cu 90.8%, Pb 89.2% and Zn 93.8% derived from historical metallurgical testing. These exploration results are preliminary and insufficient to define a mineral resource.
Overview
The Silver Hill land position totals approximately 1,300 acres in Davidson County, North Carolina, following the July 2, 2026 execution of option agreements over three additional properties totaling approximately 141 acres. The project area is entirely on privately owned land with no federal, state, or Native American ground, and features on-site roads, power and water.
Metalsource COO Tom Kleeberg and his team bring exceptional expertise on these properties, and their years of groundwork provide us with an invaluable platform for exploration.
Project History
*Underground diamond drilling. Widths reported are core length; true widths have not been determined. For complete drilling, sampling and analytical methodology, QA/QC procedures, and qualified person information (Darcy Vis), refer to the Company’s news releases filed on SEDAR+ at www.sedarplus.ca.
Cumulative Drill Results — Published Through September 16, 2026
| Drill Hole | From (m) | To (m) | Length (m) | Ag (g/t) | Au (g/t) | Cu (%) | Pb (%) | Zn (%) | AgEq (g/t)* |
|---|---|---|---|---|---|---|---|---|---|
| SH25-01 | 14.32 | 32.49 | 18.17 | 67.9 | 1.8 | 0.1 | 3.1 | 1.0 | 267 |
| Including | 24.69 | 32.49 | 7.80 | 66.1 | 3.2 | 0.1 | 3.6 | 0.9 | 383 |
| Including | 24.69 | 27.43 | 2.74 | 139.9 | 4.8 | 0.3 | 7.1 | 1.2 | 640 |
| SH25-02 | 14.23 | 29.57 | 15.33 | 33.2 | 2.1 | 0.1 | 1.1 | 1.4 | 237 |
| Including | 24.66 | 29.57 | 4.91 | 61.5 | 5.7 | 0.1 | 2.7 | 3.8 | 613 |
| Including | 26.40 | 28.13 | 1.74 | 68.7 | 13.2 | 0.1 | 2.9 | 0.5 | 1,155 |
| SH25-03 | 16.92 | 20.06 | 3.14 | 43.2 | 0.0 | 0.0 | 0.7 | 0.6 | 60 |
| Including | 16.92 | 18.41 | 1.49 | 61.4 | 0.0 | 0.0 | 0.5 | 0.1 | 67 |
| SH25-04 | 58.55 | 60.11 | 1.55 | 40.4 | 0.2 | 0.0 | 1.5 | 2.6 | 113 |
| Including | 59.56 | 60.11 | 0.55 | 103.0 | 0.7 | 0.0 | 3.9 | 6.0 | 279 |
| SH26-05 | 116.10 | 117.01 | 0.91 | 241.0 | 2.2 | 0.2 | 16.6 | 34.6 | 1,170 |
| SH26-06 | 119.30 | 119.69 | 0.40 | 2.6 | 3.1 | 0.0 | 0.0 | 0.0 | 236 |
| SH26-07 | 129.91 | 142.52 | 12.62 | 42.3 | 46.5 | 0.1 | 1.4 | 3.3 | 3,786 |
| Including | 135.58 | 142.52 | 6.95 | 54.8 | 84.0 | 0.2 | 1.1 | 1.8 | 6,730 |
| And | 139.78 | 142.52 | 2.74 | 93.6 | 209.1 | 0.1 | 0.3 | 1.2 | 16,604 |
| SH26-08 | 186.05 | 199.00 | 12.95 | 42.5 | 1.3 | 0.2 | 6.5 | 13.4 | 447 |
| Including | 186.05 | 191.48 | 5.43 | 61.6 | 1.6 | 0.2 | 11.1 | 23.5 | 705 |
| Including | 188.37 | 191.48 | 3.11 | 94.1 | 2.2 | 0.3 | 17.2 | 36.0 | 1,063 |
| And | 196.44 | 199.00 | 2.56 | 74.8 | 2.1 | 0.3 | 8.8 | 15.0 | 604 |
| SH26-10 | 111.98 | 116.59 | 4.60 | 23.9 | 0.7 | 0.1 | 2.7 | 6.1 | 202 |
| Including | 116.01 | 116.59 | 0.58 | 146.8 | 1.2 | 0.3 | 13.6 | 17.6 | 656 |
| SH26-11 | 138.41 | 149.05 | 10.64 | 27.0 | 3.3 | 0.2 | 3.3 | 7.9 | 434 |
| Including | 139.96 | 149.05 | 9.08 | 30.3 | 3.7 | 0.2 | 3.7 | 8.5 | 488 |
| Including | 142.98 | 146.15 | 3.17 | 52.4 | 9.7 | 0.4 | 6.5 | 14.7 | 1,087 |
| Including | 142.98 | 144.51 | 1.52 | 92.0 | 19.1 | 0.5 | 11.7 | 25.1 | 2,050 |
| SH26-15 | 218.66 | 228.84 | 10.18 | 16.4 | 2.1 | 0.4 | 1.5 | 2.9 | 257 |
| Including | 218.66 | 219.36 | 0.70 | 59.5 | 8.3 | 5.4 | 0.4 | 1.4 | 1,039 |
| Including | 226.13 | 228.84 | 2.71 | 41.0 | 4.5 | 0.2 | 5.3 | 10.3 | 594 |
| SH26-16 | 224.45 | 233.02 | 8.56 | 7.7 | 0.6 | 0.0 | 0.8 | 2.1 | 90 |
| Including | 224.45 | 224.85 | 0.40 | 23.8 | 11.3 | 0.1 | 1.5 | 6.0 | 984 |
| Including | 232.87 | 233.02 | 0.15 | 146.0 | 0.4 | 0.0 | 18.8 | 39.4 | 951 |
| SH26-17 | 185.59 | 185.75 | 0.15 | 21.5 | 0.7 | 0.5 | 3.8 | 10.5 | 292 |
| SH26-18 | 199.40 | 211.23 | 11.83 | 34.3 | 1.4 | 0.1 | 2.2 | 5.4 | 245 |
| Including | 199.40 | 200.80 | 1.40 | 19.7 | 7.3 | 0.3 | 1.5 | 16.0 | 833 |
| Including | 199.40 | 200.04 | 0.64 | 36.8 | 13.8 | 0.7 | 2.7 | 29.8 | 1,580 |
| Including | 208.94 | 211.23 | 2.29 | 152.7 | 1.7 | 0.4 | 9.8 | 16.0 | 636 |
| SH26-19 | 218.60 | 224.88 | 6.28 | 54.0 | 9.9 | 0.1 | 3.7 | 21.7 | 1,156 |
| Including | 218.60 | 222.20 | 3.60 | 43.7 | 16.5 | 0.1 | 2.8 | 32.2 | 1,789 |
| Including | 224.00 | 224.88 | 0.88 | 157.3 | 2.7 | 0.3 | 10.8 | 18.9 | 762 |
| And | 227.93 | 228.23 | 0.30 | 64.6 | 3.3 | 0.3 | 4.2 | 15.9 | 609 |
| SH26-20 | 227.56 | 237.13 | 9.57 | 30.2 | 2.5 | 0.2 | 2.6 | 7.6 | 364 |
| Including | 227.56 | 229.82 | 2.26 | 37.0 | 8.4 | 0.6 | 1.9 | 12.8 | 913 |
| Including | 232.90 | 237.13 | 4.24 | 47.9 | 0.7 | 0.1 | 4.7 | 10.3 | 308 |
| SH26-21 | 247.01 | 262.31 | 15.30 | 25.2 | 0.9 | 0.1 | 2.6 | 5.8 | 207 |
| Including | 247.65 | 252.07 | 4.42 | 28.6 | 1.7 | 0.1 | 4.2 | 8.9 | 340 |
| Including | 249.63 | 252.07 | 2.44 | 47.4 | 2.9 | 0.2 | 7.3 | 11.0 | 515 |
| Including | 256.21 | 262.31 | 6.10 | 36.9 | 0.5 | 0.1 | 3.1 | 6.7 | 208 |
| SH26-22 | 245.67 | 252.98 | 7.32 | 33.7 | 1.4 | 0.1 | 3.7 | 5.4 | 261 |
| Including | 251.61 | 252.98 | 1.37 | 157.6 | 3.0 | 0.4 | 17.1 | 23.6 | 930 |
| SH26-23 | 246.80 | 259.11 | 12.31 | 12.0 | 0.9 | 0.0 | 1.0 | 3.3 | 140 |
| Including | 257.25 | 259.11 | 1.86 | 70.3 | 5.7 | 0.1 | 5.7 | 18.2 | 833 |
How to read the table: Rows through SH26-19 reproduce the later cumulative table published July 16, 2026; SH26-20 and SH26-21 reproduce the August 18 table; SH26-22, SH26-23 and SH26-06 reproduce the September 16 table. The source relationship labels are preserved. In particular, SH26-19's 0.30 m interval from 227.93 m to 228.23 m is a separate And interval outside the 218.60 m to 224.88 m parent interval. Between them, 3.05 m of core from 224.88 m to 227.93 m was not recovered. Metalsource interpreted that loss as previously mined material based on mapped historic workings and stated that additional drilling is required to confirm continuity.
Technical basis: Widths are core length; additional data is needed to estimate true widths. AgEq uses 200-day average prices as of February 6, 2026 (Au US$124.5/g, Ag US$1.58/g, Cu US$4.9/lb, Pb US$0.90/lb and Zn US$1.11/lb) and recovery factors of Au 95.5%, Ag 92.9%, Cu 90.8%, Pb 89.2% and Zn 93.8%, derived from 1988 batch metallurgical testing used to estimate recoveries of Silver Hill ores. Individual metal values are composited values without recovery factors; recoveries are applied only to their respective AgEq components. These exploration results are preliminary and insufficient to define a mineral resource. Further drilling is required to determine continuity, geometry and grade distribution.
Sources: July 16 cumulative results, August 18 results and September 16 results and current collars.
Land Package Expansion
On July 2, 2026, Metalsource announced a strategic expansion of its Silver Hill land package through option agreements covering three additional properties totaling approximately 141 acres. These agreements increased the Company's consolidated land position to approximately 1,300 acres and provide access to prospective areas interpreted to be along strike and down dip of known mineralization.
The optioned ground is part of the evolving Silver Hill geological model and supports the Company's objective of evaluating the broader district-scale potential beyond the historic mine footprint.
Management continues to evaluate strategic land acquisition opportunities that align with its evolving geological model, strengthening the Company's ability to systematically explore and unlock the broader potential of Silver Hill.
This is a strategic acquisition we've been working toward for some time. As drilling, geophysics and geological interpretation have continued to improve our understanding of the Silver Hill system, it became increasingly important to secure these highly prospective properties while the opportunity was available. We're grateful to the families who have owned this land for generations and appreciate the trust they've placed in our team. Every successful drill hole has strengthened our confidence in the broader district and helped define where we believe the next phase of exploration should be focused. These newly acquired properties provide access to compelling exploration targets that we look forward to advancing in the near term as we continue expanding the known mineralized footprint at Silver Hill.
– Joe Cullen, CEOPhase 2 IP Survey — July 2026
A recently completed induced polarization (IP) survey has identified approximately 2.4 kilometres of prospective strike length across two primary target areas at Silver Hill, including:
- 1.8 kilometre anomaly in the southern portion of the project area, in the immediate vicinity of Silver Hill
- 600 metre IP anomaly in the northeast corner of the property
High-priority drill targets display geophysical characteristics analogous to the mineralized corridor defined by recent drilling. The combination of IP chargeability and resistivity data provides two complementary signals: elevated chargeability values (greater than 20 milliseconds) are interpreted to potentially reflect the presence of metallic sulphide minerals, while resistivity distinguishes the silicified host of the mineralization (1,500 to 4,000 ohm-m) from both the conductive weathered saprolite at surface and the highly resistive volcanic package.
Targets remain open north and south of the historic mine, significantly expanding the Company's exploration pipeline. Results strengthen management's evolving geological model that Silver Hill may comprise multiple mineralized occurrences rather than a single historic deposit.
Phase 2 IP interpretation showing the southern and northeast target areas. The anomalies are exploration targets based on geophysical data; they do not establish mineralization.
IP Survey Highlights
- Phase 2 IP survey identifies approximately 2.4 kilometres of prospective target areas across the Silver Hill district
- High priority drill targets display geophysical characteristics analogous to the mineralized corridor defined by recent drilling
- Targets remain open north and south of the historic mine, significantly expanding the Company's exploration pipeline
- Results strengthen management's evolving geological model that Silver Hill may comprise multiple mineralized occurrences
- Company advancing plans to increase drilling capacity to simultaneously expand known mineralization and systematically test newly identified targets
Southern Step-Out — Hole SH26-27
Drill hole SH26-27 has intersected approximately 15 metres (core length) of polymetallic mineralization, extending the known Silver Hill system approximately 65 metres south of Hole SH26-19 and representing the southernmost drill intercept reported by the Company to date.
The target horizon comprises approximately 15 metres of widespread sphalerite and galena dominant polymetallic mineralization, including an internal interval of approximately 3.5 metres of semi-massive to massive sulphides. The style and intensity of sulphide mineralization observed in SH26-27 are consistent with mineralization intersected elsewhere within the Silver Hill system.
The visual presence of widespread sphalerite and galena is significant because these are the principal sulphide minerals associated with Silver Hill’s polymetallic mineralization, further strengthening confidence that drilling continues to intersect the same expanding mineralized system. Laboratory assays were pending when the visual observation was released on July 30, and SH26-27 remained listed as assay pending in the September 16 collar table.
SH26-27 is another encouraging step forward for the program. While we’ll allow the laboratory assays to speak for the grade, we’re very encouraged by the style, thickness and continuity of the sulphide mineralization observed in the core. Importantly, this hole extends the known mineralized corridor approximately 65 metres south of SH26-19 and continues to demonstrate that the system remains open for expansion.
– Joe Cullen, CEOExpansion Drilling — September 2026
Holes SH26-22 and SH26-23 continue to demonstrate high-grade polymetallic mineralization at depth, with both holes returning higher-grade intervals within broader mineralized horizons. SH26-22 returned 7.32 metres grading 261 g/t AgEq, including 1.37 metres grading 930 g/t AgEq from 251.61 m. SH26-23 returned 12.31 metres grading 140 g/t AgEq, including 1.86 metres grading 833 g/t AgEq from 257.25 m. SH26-06 returned minimal base metals but identified multiple mineralized intervals containing gold, including 0.40 m grading 3.1 g/t Au from 119.30 m.
Drillhole SH26-25 was drilled toward the WSW to test the developing structural model and investigate alteration assemblages south of Silver Hill. Strong quartz-sericite-pyrite + albite alteration was observed in hanging wall rocks stratigraphically above the down plunge projection of SH26-27. Metalsource said the alteration supports deeper exploration below SH26-27 and represents a potential growth opportunity.
On September 16, the company described an expanded two-drill program: ongoing step-out drilling was testing continuation into previously untested ground, while the second drill provided capacity to begin testing priority IP anomalies beyond the historic mine footprint. Metalsource also said it was preparing a subsequent phase of significantly larger step outs to the north and south. These are current exploration plans rather than completed outcomes.
Technical basis: Widths are core length; additional data is needed to estimate true widths. AgEq uses 200-day average prices as of February 6, 2026 and the metal-specific recovery factors detailed in the cumulative table note above. The exploration results are preliminary and insufficient to define a mineral resource. SH26-22, SH26-23 and SH26-06 are reported assay results and are listed as complete in the September 16 collar table; several other completed holes, including SH26-27, remained assay pending as of that release.
SH26-22 and SH26-23 give us continued confidence in the continuity of the Silver Hill mineralization at depth. Together with the alteration we’re seeing farther south, we’re building an increasingly coherent picture of how this system is organized and where it may continue. We intend to significantly increase the scale of our step out drilling to the north and south, while our second drill gives us the capacity to begin testing completely untested IP anomalies beyond the historic mine footprint, several of which exhibit geophysical characteristics similar to Silver Hill proper.
– Joe Cullen, CEO