"The very high-grade CDH-140intercept is an excellent result adding significantly to the El Refugio resource confidence on this westerly 'section 800' where there is no previous drilling. Drill hole CDH-141intercepted a wide zone of gold-silvermineralisation with several reportable and high-gradeintercepts, demonstrating the size and continuity of the El Refugio structure and its significance in the Copalquin District. Drilling at the eastern end of El Refugio has been completed with good observations in drill core and awaiting assays. Study work is producing development opportunities for the El Refugio resource to progress over the coming months."
CONTINUED HIGH-GRADEDRILLING AT EL REFUGIO, COPALQUIN
DISTRICT, MEXICO

ASX ANNOUNCEMENT

27 July 2022

onlyHighlight Results

  • Excellent intercept confirming high-gradegold-silver at the western end of the El Refugio resource area with first drilling on section 800

o 5.83m @ 15.7 g/t gold, 474 g/t silver from 91.77m, (CDH-140),including

use

1.81m

@ 45.5 g/t gold, 1,387 g/t silver from 93.77m

• CDH-140 is along strike from CDH-094 which intercepted 18.67m @ 9.64 g/t gold, 279 g/t silver

from 144.0m and further supports the high-gradegold-silver on the western side of El Refugio

• Additional drilling on section 600 filled a down dip area and demonstrates the size of the El

Refugio structure with broad 62.4m wide mineralised intercept which includes

o 5.49m @ 2.54 g/t gold, 23.8 g/t silver from 292.51m, (CDH-141),including

1.00m

@ 7.09 g/t gold, 60.5 g/t silver from 292.51m, and including

personal

1.00m

@ 4.04 g/t gold, 20.2 g/t silver from 297.00m, plus

o 4.00m @ 1.35 g/t gold, 47.6 g/t silver from 276.00m, plus

2.00m

@ 0.82 g/t gold, 27.7 g/t silver from 317.00m, plus

2.00m

@ 0.98 g/t gold, 30.5 g/t silver from 325.00m, plus

1.00m

@ 0.94 g/t gold, 22.8 g/t silver from 331.00m, plus

1.80m

@ 1.67 g/t gold, 54.8 g/t silver from 292.51m

• Drilling has been completed at the eastern end of El Refugio with good observations in drill core

and samples dispatched for assay

• A drill core relogging programme has commenced for future resource modelling work

• Study work progressing to optimise a development at El Refugio including a stage one access via

a 300m adit to a zone of 51.6kt @24.65g/t gold and 187g/t silver within the indicated resource1

_________

Mithril Resources Ltd (ASX: MTH) (Mithril or the Company) is pleased to provide exploration results for its 100%

For

ptioned Copalquin Gold Silver Project in Mexico where a maiden 529koz gold equivalent* high-gradegold-silver JORC resource has been defined at El Refugio-La Soledad *(see ASX announcement 17 November 2021)

Mithril CEO and Managing Director, John Skeet, commented:

DIRECTORS

MITHRIL RESOURCES LIMITED

REGISTERED OFFICE

John Skeet - Managing Director & CEO

ACN: 099 883 922

Level 4

Garry Thomas - Non-Executive Director

ASX: MTH

100 Albert Rd

Stephen Layton - Non-Executive Director

South Melbourne VIC 3204

Claire Newstead-Sinclair - Company Secretary

www.mithrilresources.com.au

T: +61 3 9692 7222

E: info@mithrilresources.com.au

Page 2

El Refugio Drilling May-June 2022

Drilling recommenced at El Refugio in May 2022 with a program of six deep holes, three drilled from a location slightly oblique to the main structure, in order to reduce the length of the drill holes to reach the targeted depth. Assays have been received for all drill holes. The program successfully achieved the objective of locating the main structure

onlyand confirming high-grade gold and silver on the western side of the El Refugio resource area while providing additional information for the location of the upwelling feeder zone. The previously reported intercept in hole CDH- 137 of 5.67m @ 4.37 g/t gold, 174g/t silver from 331.33m, (CDH-137), including 1.67m @ 9.64 g/t gold, 399 g/t silver from 331.33 plus 1.00m @ 1.68 g/t gold, 67.2 g/t silver from 367.0m and 1.00m @ 1.27 g/t gold, 46.1 g/t silver from 370.0m filled a gap down dip on section 560 and drill hole CDH-136 confirms the downdip extension with some further high-grade gold and silver mineralisation and multiple intercepts.

The first drill holes on section 800 are reported with exceptional high-grade gold and silver intercepts in this western side of the El Refugio resource area with 5.83m @ 15.7 g/t gold, 474 g/t silver from 91.77m, (CDH-140), including 1.81m @ 45.5 g/t gold, 1,387 g/t silver from 93.77m down dip of hole CDH-139 (Figure 3). This supports the high-

usegrade previously intercepted 40m west by drill hole CDH-094 with 18.87m @ 9.67g/t gold, 279g/t silver.

personalForigure 1 - Plan view at El Refugio - La Soledad showing the maiden JORC MRE area, drill traces and section lines with the locations of the drill intercepts for drill holes CDH-140 and CDH-141 reported in this announcement

1 see page 6 for JORC MRE details

www.mithrilresources.com.au

Page 3

For personal use only

Figure 2 - Cross section 600 showing the well developed El Refugio structure which hosts multiple gold-silver bearing veins including very high-grade grades

Figure 3 - Cross section 800 where the first drill holes have been completed at the western side of the El Refugio resource area with very high-grade gold and silver developing down dip and one section east of the high-gradeCDH-094 intercept.

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Figure 5 Oblique long section showing the La Soledad and El Refugio vein models with drill hole traces and resource block model. Scale and elevations are approximate.
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Figure 4 Photo of drill core from drill hole CDH-144at 268m, showing black silver sulphides and sulphosalts and pyrite
1cm
A drill programme has recently been completed on the eastern side of El Refugio targeting deep and near to where onlythe main El Refugio upwelling zone is projected.
Core from the most recent holes have the first observed occurrences of platy quartz after calcite, a texture indicative of boiling and gold deposition. Late amethyst is also observed filling what was open space at the time of mineralization. This texture is indicative of boiling. Visible silver minerals are commonly observed in the mineralized veins. All drill core samples have been dispatched for assay.
For usepersonal
El Refugio Drilling June-July2022

Page 4

Figure 6 Copalquin District Geologic Model for epithermal gold/silver - geologic model (author: Hall Stewart PG, Chief Geologist)

Page 5

The above figure shows an oblique view of the La Soledad-El Refugio vein and block models with traces of drill holes to date. Recent drill logs and results show significant depth potential of this major system and also indicate the general location of the El Refugio upwelling feeder zone and this is consistent with the epithermal gold-silver model shown in the

figure below. onlyuse

personalScoping Study Work

Work is progressing to assess the first stage development options to optimally exploit the high-grade El Refugio resource. Recent drilling has been spaced across the strike of the mineralized zone to infill strategic areas. There are options to reduce the mine development meterage and to take advantage of topography and high-grade zones within the El Cometa-El Refugio resource on the eastern side of the deposit to potentially produce attractive development

Foreconomics including low initial capital requirements and short payback period.

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Mithril Resources Limited published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2022 23:41:04 UTC.