Initial sampling and panning of the mineralized material from the new zone yielded significant high-grade silver, with gold and lead. Twelve samples were taken. Subsequent internal test results of these twelve samples range from seven to twenty-seven ounces per ton of silver. Control tests are sent to an external laboratory for confirmation. This area differs from the main vein of the KT mine in that results to date from the newly discovered zone indicate high-grade silver with gold versus high-grade gold with silver in the main zone. Readers are cautioned that the samples are random in nature and may not represent the new zone as a whole.
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SBMI’s geology team, including Nick Barr, the company’s in-house geologist, is developing a plan to advance this new discovery. To enable a more detailed evaluation of the new zone, the company is conducting excavations along the vein. It was also able to identify the vein at a distance of more than 60 meters in length. An approximately 2.5 meter wide surface vein has been exposed and it is not yet known whether this surface vein is part of the main KT vein, the new zone or another new zone. Excavations are underway to uncover further mineralization during the strike.
As part of the development of the new zone, the company has removed a bulk sample of approximately 200 tonnes for processing at its plant/analysis facility located in close proximity to the KT mine. The results of that material are still in development and will be available soon. The material from this newly discovered zone will be processed into concentrate and most likely sold to the same buyer who already purchases concentrate from the company.
SBMI’s business plan is based on a hub-and-spoke model, where the mill is the hub. Owning its own processing complex allows SBMI to quickly evaluate and advance opportunities as new targets are identified. The company can then make quick, accurate decisions based on clear facts and figures. This puts SBMI in an excellent position to meet the growing need for silver/gold. As previously stated, SBMI plans to expand production capacity in the near future to meet this increasing demand.
The geology team continues to evaluate the potential of this new discovery and will provide further updates in the near future.
The processing of material from the KT main zone continues. To date, four shipments of concentrate from that material have been made, with a fifth shipment expected to be picked up this week. Underground development at the KT has been completed and the company expects mining to begin this week. SBMI reasonably believes that the top quality of the subsurface material should increase significantly.
The first shipment of concentrate was received by Buyer on October 29, 2025. Buyer has completed its standard internal procedures to process that shipment, advising SBMI to send samples of that concentrate to two independent laboratories for analysis on December 16, 2025. These laboratories are currently testing the concentrate samples and results are expected shortly. Subsequent batches of SBMI may not require this level of analysis.
The company expects that payment for the first shipment will be made immediately upon receipt of the comparison results, assuming no major discrepancies exist. This is slightly longer than expected due to loss of time due to the holidays and extra work that the Buyer carries out on behalf of SBMI.
The company is currently evaluating the results of its highly successful fall development program at the Washington Mine in Idaho and will provide an update in the near future.
Finally, 1,923,334 warrants issued in connection with a private placement were recently exercised at an exercise price of $0.17, and 625,000 warrants previously issued in connection with convertible notes were recently exercised at an exercise price of $0.16. The exercise of warrants provides the Company with additional working capital. The cumulative exercise of warrants during the first and second quarters of fiscal 2026 includes 4,684,167 warrants at an exercise price of $0.16 and 1,923,334 warrants at an exercise price of $0.17.
QA/QC
The samples described in this press release were analyzed by SBMI at its facility near Globe, Arizona. These samples were processed into an aliquot via the Lab Jaw Crusher, Lab Hammer Mill and Splitter Box. Most of the pulverized portion was mixed with a combination of flux and flour and melted in a crucible at 1850 degrees Fahrenheit, while the remainder was recorded and archived. After cooling, the cast melt was in the shape of a metal button and slug, then a bone ash cupel was used to remove the lead in the button to form a bead. The bead was then weighed, after which a solution of 6:1 distilled water in nitric acid was used to dissolve the gold in the bead at approximately 175 degrees Fahrenheit. A much more detailed description of the process and a photo of the testing laboratory can be found at QA/QC Testing Laboratory – Silver Bullet Mines Corp.
Mr. Robert G. Komatechka, P.Geo., an independent consultant, has reviewed and verified SBMI’s work referenced herein and is the qualified person for this release. Mr Komatechka was not on site when the samples were collected.
Cautionary and forward-looking statements
This press release contains certain statements that may be forward-looking statements as they relate to SBMI and its subsidiaries. Forward-looking statements are not historical facts, but represent management’s current expectations of future events, and can be identified by words such as “believe,” “expect,” “will,” “intend,” “plan,” “project,” “anticipate,” “estimate,” “continue” and similar expressions. Although management believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements involve assumptions and are subject to inherent risks and uncertainties that may cause actual future results, conditions, actions or events to differ materially from those expressed in the forward-looking statements. If and when forward-looking statements are set forth in this new press release, SBMI will also set forth the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, SBMI assumes no obligation to update or revise any forward-looking statements. The future outcomes relating to forward-looking statements could be affected by many factors, including but not limited to: the impact of SARS CoV-2 or any other global pathogen; dependence on key personnel; the thoroughness of its QA/QA procedures; the continuity of the global supply chain of materials that SBMI can use in the exploration and production and processing of mineralized material; the results of exploration and development activities; the results of mining and milling activities; shareholder and regulatory approvals; activities and attitudes of local communities at the location of SBMI properties; risks of future legal proceedings; income tax and tariff matters; fires, floods, snowfall, spring thaw and other natural phenomena; the inflation rate; counterparty risk relating to any purchaser of the Company’s products; availability and terms of financing; distribution of securities; prices of raw materials; currency fluctuations, especially between the USD and CDN; effect of market interest rates on the price of securities; and potential dilution. SARS CoV-2 and other potential global pathogens create risks that are currently immeasurable and impossible to define.
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