Mercado Minerals — M&A Activity 2025

Jul 28, 2025

MERCADO MINERALS LTD

Trading Symbol (CSE: MERC)
615-625 Howe Street
Vancouver, British Columbia
Canada V6C 2T6
Tel: (604) 353 4080
www.mercadominerals.com

Mercado Minerals Provides Update on LOI Signed with Concordia Silver - Pursues Two Projects within the Emerging Western Mexico Silver Belt of the Prolific Sierra Madre Occidental

Vancouver, BC, July 28, 2025 – Mercado Minerals Ltd. (CSE: MERC) ("Mercado" or the "Company") is pleased to provide an update to the letter of intent (the "LOI"), dated June 6, 2025, with Concordia Silver Company S.A. DE C.V. ("Concordia"), an arms-length party. (See news release dated June 11, 2025). Pursuant to the LOI, Mercado intends to acquire 100% of Concordia and its underlying property rights in Mexico, including the Copalito property and the Zamora property. Both properties are located along the western side of the Sierra Madre Occidental, a world class mining district host to many silver and gold deposits.

Daniel Rodriguez, CEO and Director, stated, "To have the opportunity to secure a district scale land position over such a large number of high grade vein occurrences that have never been drilled at Zamora is exactly the type of prospective potential we want to provide our shareholders. We see an immense opportunity in both properties with existing drill results or the lack of them, indicating we have the potential to make further discoveries and create value for our shareholders. We continue to compile data and complete our due diligence on both properties and on Concordia in preparation for the signing of a definitive agreement and future exploration."

Copalito Project

The Copalito project presents a district scale opportunity with known and drilled silver – gold low sulphidation vein mineralization that is open for expansion. Historical third-party high grade silver and significant gold and base metal drill intercepts include; 347 g/t silver, 0.22 g/t gold, 0.18% lead and 0.38% zinc over 13.10 m in BDH-20-004 and 125 g/t silver, 2.00 g/t gold, 0.34% lead and 0.58% zinc over 23.00 m in BDH-21-055. Under the terms of the LOI, Mercado will acquire an option to purchase seven concessions covering 2,820 Ha. Six principle known veins on the project have a cumulative strike length of over 8 km. The Copalito project is located approximately 123 km northeast of Culiacan, Sinaloa. The property has good access, moderate topography, and infrastructure nearby. The neighbouring property to Copalito is McEwen Mining's "El Gallo mine" complex, located 35 km to the west. Kootenay Silver Inc. ("Kootenay") was the most recent operator of the Copalito project. Kootenay successfully explored and drilled 81 diamond drill holes on the property, over 6 veins of primary interest. This historical drilling has only tested approximately 60% of strike of the veins and only to an average depth of 100 m. Mercado has also acquired the existing drill data, which provides an excellent base for future exploration drill targeting of higher and thicker grade portions of veins along strike and to depth.

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Table 1 – Copalito Property Significant Historical Drill Intersections$^{1,2}$

Vein	Hole	From (m)	To (m)	Interval (m)	Ag (g/t)	Au (g/t)	Pb (%)	Zn (%)	Cu (%)	AgEq (g/t)
5 Señores	BDH-20-004	54.00	67.10	13.10	347	0.22	0.18	0.38	-	375
	incl.	57.78	61.00	3.22	1297	0.29	0.36	0.47	-	1,336
	and incl.	60.00	61.00	1.00	2830	0.15	0.77	1.33	-	2,886
5 Señores	BDH-20-037	42.00	52.00	10.00	128	0.66	0.22	0.91	-	203
	incl.	45.75	48.00	2.25	484	2.19	0.58	2.29	-	711
	and incl.	47.00	48.00	1.00	846	3.11	1.18	4.97	-	1,216
5 Señores	BDH-20-040	26.00	35.05	9.05	124	2.09	0.16	0.64	-	297
	incl.	31.00	33.25	2.25	335	6.65	0.51	2.12	-	889
	and incl.	32.12	32.63	0.51	369	16.95	0.66	3.08	-	1,715
5 Señores	BDH-21-042	15.00	36.00	21.00	178	0.19	0.23	0.58	-	210
	incl.	25.50	36.00	10.50	334	0.35	0.43	1.04	-	392
	and incl.	30.00	31.18	1.18	1965	0.58	1.95	4.40	-	2,146
5 Señores	BDH-21-046	35.04	54.47	19.43	218	0.83	0.38	1.10	-	312
	incl.	46.50	54.47	7.97	330	1.24	0.51	1.45	-	466
	and incl.	46.50	46.72	0.22	3160	2.27	2.12	5.72	-	3,501
		63.00	78.00	15.00	61	0.75	0.10	0.29	-	126
	incl.	63.00	65.00	2.00	220	3.80	0.09	0.27	-	510
5 Señores	BDH-21-048	51.00	63.00	12.00	66	0.17	0.20	0.61	-	97
	incl.	56.30	58.50	2.20	241	0.42	0.11	0.74	-	292
	and incl.	56.30	56.76	0.46	335	1.04	0.05	0.50	-	425
	and incl.	57.12	57.39	0.27	318	0.79	0.51	2.46	-	444
Agua	BDH-20-006	1.50	3.05	1.55	303	0.06	0.07	0.07	-	311
Agua	BDH-21-055	78.00	101.00	23.00	125	2.00	0.34	0.58	-	294
	incl.	78.00	83.00	5.00	28	9.26	0.20	0.37	-	729
	and incl.	81.00	81.65	0.65	29	21.10	0.09	0.26	-	1,607
	incl.	97.00	100.00	3.00	587	0.82	0.64	0.94	-	682
Agua	BDH-21-056	50.00	71.00	21.00	101	0.22	0.25	0.61	-	137
	incl.	53.00	61.50	8.50	212	0.32	0.23	0.55	-	252
	and incl.	60.00	61.50	1.50	440	0.48	0.31	0.62	-	496
Chiva	BDH-20-009	33.00	51.00	18.00	63	0.15	0.14	0.60	-	91
	incl.	33.00	34.00	1.00	936	0.29	1.02	2.29	-	1,030
Chiva	BDH-21-063	29.68	31.50	1.82	86	0.92	2.37	3.09	-	270
	incl.	29.68	30.00	0.32	453	4.49	12.70	14.35	-	1,354
Pilar	BDH-21-073	120.00	124.40	4.40	13	1.04	0.70	1.65	0.05	146
	incl.	120.88	121.12	0.24	31	1.93	3.98	7.87	0.10	440
	incl.	123.50	124.40	0.90	14	4.36	2.09	4.03	0.22	491
Pilar	BDH-21-074	85.00	90.30	5.30	19	1.09	0.95	2.62	-	179
	incl.	88.50	89.40	0.90	20	4.01	0.85	1.30	-	365
Pilar	BDH-21-075	68.00	78.00	10.00	14	0.72	0.41	1.26	-	105
	incl.	68.35	69.20	0.85	103	5.20	4.13	11.81	-	842
Corbriza	BDH-20-022	15.00	21.35	6.35	40	0.15	0.02	0.05	0.17	68
	incl.	18.30	19.00	0.70	307	0.15	0.06	0.09	1.27	438

$^{1}$ Silver-equivalent values are calculated assuming typical recoveries based on metallurgical studies conducted on analogous epithermal vein deposits and are not necessarily reflective of metallurgy on the property. No metallurgical work has been reported on the property. The recoveries used are 91% silver, 94% gold, 70% lead, 75% zinc and 80% copper. The silver-equivalent formula is: ((24 * silver (g/t)0.91 / 31.1035) + (1900 * gold (g/t)0.94 / 31.1035) + (0.90 * 2204 * lead %0.7/100) + (1.10 * 2204 * zinc %0.75/100) + (4.002204copper %*0.8/100)) * (31.1035 / 24). Metal price assumptions are US$24/oz silver, US$1900/oz gold, US$0.90/lb lead, US$1.10/lb zinc and US$4.00/lb copper. Copper values are only included in the calculation of silver-equivalence for a mineralized intercept where the intercept contains at least one copper value that exceeds 0.1% copper. Numbers may not match due to rounding.
$^{2}$ True widths are unknown.

The technical information and data for the Copalito property appears to be of a good standard. However, the QP has not conducted sufficient work to independently validate the assay drill core results. Therefore, the Company is treating the Copalito results as historical in nature and are not to be relied on. The QP will independently verify results of the historic work during a site visit later this year.

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Zamora Project

The Zamora project and greater area presents district scale potential that, according to available historic reports, has never been drilled. Under the terms of the LOI with Concordia, Mercado will acquire four (4) concessions covering 378 Ha, which covers small scale historic underground production at Campanillas, and the right to potentially bring another 2,999 Ha of concessions back into good standing with the government, thereby securing title. If successful, Mercado will own a total of 3,377 Ha covering a cumulative strike length of over 8 km of structures with 14 historic high grade silver gold mines on them (Table 3).

Historic sampling by the previous operators on concessions currently under LOI and controlled by Concordia includes results from underground workings at Campanillas that returned 14,561 g/t silver and 15.53 g/t gold from a grab sample (Table 2). Additional sampling at El Triunfo returned 286 g/t silver and 2.54 g/t gold over 1.00 m, while a soil sample near the Periguete workings is reported to have returned 8.00 g/t gold.

Table 2 - Zamora Project Significant Historical Rock Sample Results

Vein	Sample Type	Interval (m)	Ag (g/t)	Au (g/t)	AgEq (g/t)
Campanillas	stockpile-grab	-	14,561	15.53	14,406
Campanillas	grab	-	1,104	2.20	1,168
Campanillas	grab	-	383	1.00	423
El Triunfo	channel	1.00	286	2.54	449
El Triunfo	chip	-	174	1.08	238
Periguete	soil sample	-	-	8.00	595

Table 3 - Zamora Surrounding Area Significant Historical Rock Sample Results³

Vein	Sample Type	Interval (m)	Ag (g/t)	Au (g/t)	AgEq (g/t)
Los Olotes	channel	0.50	6,600	44.00	9,280
Los Olotes	channel	1.60	3,150	13.40	3,864
La Camichina	channel	0.80	5,100	23.50	6,390
La Camichina	channel	0.80	1,303	2.70	1,387
Zamora Vein	channel	1.60	3,150	13.40	3,864
Zamora Vein	channel	1.30	2,320	8.20	2,721
Zamora Vein	channel	1.10	1,760	9.50	2,309
Zamora Vein	channel	1.00	173	28.00	2,241
Zamora Vein	channel	1.00	1,250	11.00	1,956
Zamora Vein	channel	1.10	100	12.80	1,043
Zamora Vein	channel	1.50	1,102	3.60	1,271
Aguamas	channel	3.00	28	13.07	998
Including	channel	1.00	53	25.25	1,928
Aguamas	grab	-	98	34.05	2,623
Aguamas	grab	-	192	14.87	1,281

³These results are from outside current concessions held by Concordia and in the process of bringing the claims back into good standing. The reader is cautioned that the results are of a historic nature, have not been verified by the QP and are not to be relied on. There is no guarantee that Mercado will be successful in bringing the extended area of concessions back into good standing and thereby secure title. The results from the area surrounding Zamora are not necessarily indicative of the mineralization on the Zamora property.

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The technical information and data for the Zamora property appears to be of a good standard. However, the QP has not conducted sufficient work to independently validate the assay rock sample results from Zamora. Therefore, the Company is treating the Zamora results as historical in nature and are not to be relied on. The QP will independently verify results of the historic work during a site visit later this year.

Qualified Person

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf of Mercado by Thomas Hawkins P.Geo, Qualified Person.

About Mercado Minerals Ltd.

Mercado Minerals Ltd. (CSE: MERC) is a company involved in the business of acquiring and exploring mineral properties in the Americas. Mercado has been primarily involved in the exploration and evaluation of the Porter Property, located within the Alberni Mining Divisions of British Columbia.

For further information, contact:

Daniel Rodriguez
CEO & Director
Phone: (604) 353-4080
Email: drodriguez@mercadominerals.com

John Fraser
VP Business Development & Director
Phone: (604) 838-7677
Email: jfraser@mercadominerals.com

Forward-Looking Statement (Safe Harbor Statement):

This press release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate," "plan," "continue," "expect," "estimate," "objective," "may," "will," "project," "should," "predict," "potential" and similar expressions are intended to identify forward-looking statements. In particular, this press release contains forward-looking statements, including but limited to, the signing of a definitive agreement with Concordia and the Company's exploration plans. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on these statements because the Company cannot provide assurance that they will prove correct. Forward-looking statements involve inherent risks and uncertainties, and actual results may differ materially from those anticipated. Factors that could cause actual results to differ include conditions in equity financing markets, and receipt of regulatory and shareholder approvals. These forward-looking statements are made as of the date of this press release, and, except as required by law, the Company disclaims any intent or obligation to update publicly any forward-looking statements.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

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