Metalsource Mining expands drilling at Silver Hill

New drilling will target strike and down plunge extensions of the exceptional polymetallic mineralization intersected in Hole SH26-07 as the Company's second drill rig prepares to evaluate newly identified district scale exploration targets.

Vancouver, British Columbia--(Newsfile Corp. - August 6, 2026) - Metalsource Mining Inc. (CSE: MSM) (OTCQB: MSMMF) (FSE: E9Z) ("Metalsource" or the "Company") is pleased to announce the next phase of drilling at its flagship Silver Hill Project in North Carolina. Building on the success of recent drilling and an increasingly refined geological model, the Company is launching a focused expansion program targeting strike and down plunge extensions of the highest grade polymetallic mineralization identified to date. The program is designed to systematically expand known mineralization while advancing Silver Hill toward an inaugural mineral resource estimate currently targeted for early 2027.

The next phase of drilling will focus on the area surrounding Hole SH26-07, one of the most significant intercepts reported by the Company to date. SH26-07 intersected 12.62 metres grading 3,786 g/t silver equivalent* , including 6.95 metres grading 6,730 g/t silver equivalent* and 2.74 metres grading 16,604 g/t silver equivalent* , highlighted by 209.1 g/t gold , together with strong silver, lead and zinc mineralization. Management believes the evolving geological model now provides a significantly improved understanding of the controls on this high grade intercept and is positioning the drill program to evaluate its continuity along strike, down plunge and at depth.

Key Highlights

Targeting the highest grade mineralization identified to date, anchored by Hole SH26-07, which returned up to 16,604 g/t silver equivalent over 2.74 metres.

New drill platforms will allow systematic testing of strike and down plunge extensions while improving continuity between previously successful drill holes, including SH26-05 and SH25-02.

Dual track exploration strategy continues, with the current program focused on expanding the known Silver Hill mineralization while a second drill rig prepares to evaluate newly identified district scale exploration targets generated through the Company's recent IP survey.

Technical Discussion

Construction of additional drill platforms west of the current drilling area is planned to facilitate testing of the interpreted deep extension of the Silver Hill polymetallic system and continued expansion of mineralization along strike and at depth. Concurrently, the Company will construct additional drill platforms positioned to evaluate exploration targets identified through the recently completed property scale IP survey.

During construction activities, drilling will temporarily transition to the eastern portion of the system, where step out holes will evaluate the interpreted up dip extension of the high grade polymetallic mineralization defined by SH26-07. These holes are designed to test the continuity of gold rich mineralization along trend while also improving geological understanding between SH26-07, SH26-05 and SH25-02, all of which intersected significant polymetallic mineralization with gold enrichment.

Joe Cullen, Chief Executive Officer, commented:

"One of the advantages of a successful exploration program is that each drill hole makes the next one more intelligent. Over the past several months we've significantly improved our understanding of the geological controls at Silver Hill, and we're now applying that knowledge by deliberately targeting the highest grade mineralization identified to date.

"Hole SH26-07 demonstrated the exceptional grade potential of the system, and our objective now is to determine how far that mineralization extends along strike, down plunge and at depth while continuing to strengthen the continuity of the broader polymetallic system. This work is fundamental to building a robust geological model and advancing toward our inaugural resource estimate.

"At the same time, exploration across the broader district continues to accelerate. While this program remains focused on expanding the known Silver Hill deposit, our second drill rig will begin evaluating newly identified high priority targets generated through our recent IP survey. For the first time, we'll be targeting mineralization along strike and pursuing new discoveries simultaneously, marking another important step in the evolution of the Silver Hill project."

Why This Matters to Investors

This phase of drilling represents a natural progression in Metalsource's exploration strategy. Rather than simply stepping out from previous holes, the Company is now applying an increasingly refined geological model to systematically target extensions of the highest grade polymetallic mineralization identified to date.

Importantly, this program is designed to accomplish two complementary objectives. First, it seeks to expand and strengthen the continuity of the known Silver Hill mineralization in support of an inaugural mineral resource estimate. Second, as the Company's second drill rig begins evaluating newly identified district scale targets, Metalsource will simultaneously pursue opportunities for new discoveries beyond the historic mine footprint.

Together, these initiatives represent an important evolution in Metalsource's exploration strategy. The Company is now systematically expanding the exceptional high grade polymetallic mineralization highlighted by Hole SH26-07 while simultaneously advancing district scale exploration beyond the historic mine footprint. By integrating modern drilling, geophysics and geological interpretation, management believes Silver Hill is transitioning from a historic producing mine into a growing polymetallic district with multiple opportunities for defining a resource and new discoveries.

Metalsource QA/QC protocols are maintained through the insertion of certified reference material (standards), blanks, and duplicates within the sample stream. The drill core is cut in half with a diamond saw, with one half placed in sealed bags and shipped to the laboratory and the other half retained on site. Chain of custody is maintained from the drill to the submittal into the laboratory preparation facility.

Analytical testing is performed by ALS Geochemistry (Reno, NV) and ALS Canada (Vancouver, BC). The entire sample is crushed to 70% passing 2mm mesh, with a 250 gram split pulverized to 85% passing minus 75 micron. A four-acid digest is performed on 0.25g of sample to quantitatively dissolve most geological materials. Analysis is performed with a combination of ICP-AES and ICP-MS and fire assay.

The exploration results described herein are preliminary in nature and are insufficient to define a mineral resource. Further drilling is required to determine the continuity, geometry, and grade distribution of mineralization. At the time of this release analytical results remain pending.

*Metal values used in AgEq calculations are from the 200-day moving average values from 2/6/2026, and all values are in USD. PAu= $124.5/g, PAg= $1.58/g, PCu= $4.9/lbs, PPb=$0.90/lbs, PZn=$1.11/lbs, 0.00220462262 = grams-to-pounds conversion factor, 22.0462262 = pounds per tonne for 1% metal. Metal recoveries used in the AgEq calculation are Au: 95.5%, Ag: 92.9%, Pb: 89.2%, Zn: 93.8% and Cu 90.8%. These recovery values are derived from batch metallurgical testing used to estimate recoveries of Silver Hill ores, completed in 1988. Individual metal values in the results table are composited values and not factored by recovery. Metal recoveries are applied to their respective component of the AgEq calculation only.

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Qualified Person

All scientific and technical information has been reviewed and approved by Darcy Vis, B.Sc., P.Geo., President of Tripoint Geological Services Ltd., a contractor of the Company, and a Qualified Person as defined under National Instrument ("NI") 43-101 - Standards of Disclosure for Mineral Projects.

Silver Hill Project

Located in the Carolina Terrane, the property is underlain by volcaniclastic and volcano-sedimentary rocks predominantly of Neoproterozoic and Cambrian age. Current interpretations suggest this terrane is an extension of the Avalon Terrane. The property is 1,225 acres located in Davidson County, North Carolina. As the first significant discovery and first silver-producing mine in America, the property is supported by an extensive historic dataset, including drillhole data, underground mapping, historic dumps and underground chip samples. Currently known mineralization extends to 550m from surface, in a steeply trending series of lenses, which remain open in multiple directions.

Byrd-Pilot Mountain Project

The Byrd-Pilot Mountain Project is located in central North Carolina within the Carolina Terrane. Initial USGS surveys in the 1980s identified the area as a potential host for a porphyry gold-copper system. Subsequent exploration demonstrated broad gold mineralization in soils, trenches, and shallow RC drilling, coincident with strong self-potential anomalies. Geology shows intense quartz-sericite-pyrite alteration, high-sulfidation signatures, and high-alumina minerals (like Haile and Brewer deposits to the south), suggesting potential for a large epithermal or porphyry-related gold system. Geologic modelling of currently identified mineralization indicates an east-west trend open in multiple directions, with oxidation noted down to a depth of 30m. No drilling has tested the Meridian discovery zone since those 1980s campaigns, leaving potential for significant resource expansion through work commitments of the agreement.

Investor Relations Agreement

The Company has entered into an agreement dated August 1, 2026 with North Star Investor Relations Inc. ("North Star") pursuant to which the Company has engaged the services of North Star to provide investor relations and marketing services, beginning on August 1, 2026 and ending June 30, 2027.

Pursuant to the Agreement, North Star will receive a monthly payment of C$8,000 and 250,000 stock options to be granted in January 2027 at a price to be determined on the date of grant. The options shall be valid for a two year term and vest quarterly over one year. North Star does not currently own any interest, directly or indirectly, in the Company or its securities. North Star's address is 130 King Street West, Toronto, ON, M5X 2A2 (phone: (416) 842-9003, email: graham@northstarir.ca ). North Star and its directors and officers are arm's length from the Company.

About Metalsource Mining Inc.

Metalsource Mining Inc. is a U.S.-focused precious and critical metals exploration company advancing the Silver Hill Project in North Carolina, widely recognized as America's first silver mine. A historically producing mining district dating back to 1839, Silver Hill produced silver, gold, lead and zinc during the formative years of the American mining industry and remains one of the most historically significant mining assets in the United States.

The Company is focused on expanding known mineralization, advancing toward a modern resource estimate, and unlocking the broader potential of the Silver Hill district through systematic drilling, geological modeling and modern exploration techniques.

Metalsource Mining America's First Silver Mine. Modern Exploration. Historic Opportunity.

For further information, please contact: Joe Cullen CEO - Metalsource Mining Inc. Tel: (778) 919-8615 Email: jcullen@metalsourcemining.com

Cautionary Note About Forward-Looking Statements This news release may include forward-looking statements that are subject to risks and uncertainties. By its nature, this information is subject to ‎‎inherent risks and ‎‎uncertainties that may be general or specific and which give rise to the possibility that ‎‎expectations, ‎‎forecasts, predictions, projections, or conclusions will not prove to be accurate, that ‎‎assumptions may not ‎‎be correct, and that objectives, strategic goals and priorities will not be achieved. ‎‎These risks and ‎‎uncertainties include but are not limited those identified and reported in the Company's ‎‎public filings ‎‎under the Company's SEDAR+ profile at www.sedarplus.ca . Although the Company has ‎‎attempted to identify ‎‎important factors that could cause actual actions, events, or results to differ ‎‎materially from those ‎‎described in forward-looking information, there may be other factors that cause ‎‎actions, events or ‎‎results not to be as anticipated, estimated or intended. There can be no assurance that ‎‎such information ‎‎will prove to be accurate as actual results and future events could differ materially from ‎‎those ‎‎anticipated in such statements. The Company disclaims any intention or obligation to update or ‎‎revise any ‎‎forward-looking information, whether as a result of new information, future events or ‎‎otherwise unless ‎‎required by law.‎

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August 6, 2026 - 5:30 AM PDT

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