Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to provide exploration results for its Copalquin Gold Silver Project in Mexico.

Mithril CEO and Managing Director, John Skeet, commented: 'Our expansive exploration program across the district has delivered excellent results ahead of resource development drilling along strike from the high-grade maiden resource at El Refugio. The vein system at La Soledad has been extended and we have intercepted veins further east of La Soledad and along strike at Los Pinos. Mapping and soil sampling has developed a large new target along the same mineralised trend at La Montura to be drill ready. La Montura, which shares similarities with El Refugio, is 2km along trend within low angle structures extending at least 4 km. Together with planned deep drilling at El Refugio and the confirmed extension at Refugio West, Copalquin is well positioned for significant gold-silver resource growth throughout 2022.'

Drilling at La Soledad and East at Los Pinos

The series of holes completed at La Soledad have clearly shown the existence of a sheeted vein system and association with a granodiorite pre-mineral intrusion. The intrusion of the granodiorite into the favourablyfracturing andesite rock unit, created cracks and voids that later became sites for mineralised deposits. Where there are voids along the gold-silver veins, favourable conditions lead to the formation of high-grade 'clavos' (oreshoots) such as the one mined historically at La Soledad and discovered at El Refugio, as part of the maiden resource drilling. The recent drilling and interpretation at La Soledad are guiding the discovery of further clavos and veins along strike and deeper at La Soledad, with highly encouraging results to date.

At Los Pinos, the ridge just to the east of El Refugio-La Soledad, the extensive surface alteration and the strong gold in soils anomaly rank this area as a high-priority target. To date, only a handful of exploration holes have been completed at Los Pinos and importantly, drill hole CDH-113 has intercepted a narrow, high-grade vein only 78 metres down hole. Locating this high-grade vein allows planning of further drilling at Los Pinos as we continue to search of the main source of the alteration and strong surface gold anomaly. The angle and orientation of the vein suggest it may be on the same structure as the La Soledad veins, 700 metres away

District Middle Section - Target Expansion

The dry season mapping program (January-May) in the Copalquin District further strengthens data supporting the high prospectivity of the district. Already we have demonstrated the high-quality resource potential of the district with the excellent maiden resource with high-grade gold and silver at El Refugio-La Soledad delivered after only 15 months of drilling. New targets to the east and to the west of Refugio along the trend of rhyolite intrusives are being developed towards being drill-ready for expansion of the resource footprint. Soil sampling is underway at La Montura in preparation for drilling.

ABOUT THE COPALQUIN GOLD SILVER PROJECT

The Copalquin mining district is located in Durango State, Mexico and covers an entire mining district of 70km2 containing several dozen historic gold and silver mines and workings, ten of which had notable production. The district is within the Sierra Madre Gold Silver Trend which extends north-south along the western side of Mexico and hosts many world-class gold and silver deposits. Multiple mineralisation events, young intrusives thought to be system-driving heat sources, widespread alteration together with extensive surface vein exposures and dozens of historic mine workings, identify the Copalquin mining district as a major epithermal centre for Gold and Silver.

Mining study and metallurgical test work supports the development of the El Refugio-La Soledad resource with conventional mining methods indicated as being appropriate and with high gold-silver recovery to produce metal on-site with conventional processing. Mithril is currently exploring in the Copalquin District to expand the resource footprint in 2022 to demonstrate its multi-million ounce gold and silver potential. Mithril Resources is earning 100% interest in the Copalquin District mining concessions via a purchase option agreement detailed in ASX announcement dated 25 November 2019.

Contact:

John Skeet

Tel: +61 435 766 809

Email: jskeet@mithrilresources.com.au

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