Mithril Resources Ltd. release details on the recently completed mining concepts study from its Copalquin Gold Silver District, Mexico. Highlights: Mining concepts study completed following the excellent high-grade maiden resource estimate delivered in November 2021 and the recently announced metallurgical test work; The conceptual exploration access - mine design indicates El Refugio-La Soledad has the potential as an underground project utilising common contemporary mechanised mining methods suited to narrow to moderate mining widths; Early underground access initially for exploration drilling is considered as part of longer-term mining development; Outcomes of the study will aid design of the future drilling at El Refugio to advance resource classification and resource expansion; Drilling, mapping and geochemical sampling are progressing in the district, and the company awaits laboratory assay results for this work. AMC Consultants has completed a mining concepts design study for the El Refugio-La Soledad maiden JORC mineral resource estimate.

The high-grade maiden MRE released 17 November 2021 is given below. 2,416,000 tonnes @ 4.80 g/t gold, 141 g/t silver for 373,000 oz gold plus 10,953,000 oz silver (Total 529,000 oz AuEq) using a cut-off grade of 2.0 g/t AuEq; 28.6% of the resource tonnage is classified as indicated The study considered open pit potential and various underground mining techniques. The positioning of the underground mine development was also assessed.

The study work shows that there is some open pit potential requiring further drilling work to better define near surface high-grade material at El Cometa. The most likely scenario from the study indicates that the resource would be most effectively mined by underground methods. Some geotechnical logging of exploration holes has been undertaken and historical workings are present.

AMC notes that rock mass conditions indicate "good" to "very good" rock but can generally be categorised as "fair" until recommended geotechnical assessment work has been undertaken. AMC has recommended geotechnical work, which includes geotechnical logging of existing drill core on site, geotechnical diamond core drilling, structural modelling and structure confirmation drilling (to coincide with resource infill drilling) to be completed prior to further mining study work. The preferred conceptual exploration access - mine design was constructed, and sequence animated based on: Twin mine area accesses from twin southern adits connected to a valley-to-valley exploration access developed in the footwall of the El Refugio orebody.

A separate eastern adit exploration access is developed in the footwall of the Soledad orebodies with maximum access gradient reduced to 1:8, Primary infrastructure developed off the exploration access, with primary infrastructure positioned within the footwall. Mine access layout based on Avoca benching with rockfill. Mine design to avoid ventilation raises to surface, provide a cost-efficient flow-through primary ventilation circuit as soon as possible and provide emergency secondary egress as soon as possible within the mine plan.

If ongoing exploration drilling identifies significant additional near surface mineralisation adjacent to the current understanding of the El Refugio mineral resources, then Mithril should consider re-assessing the project for open pit mining potential. The key recommendations for the next phase of data collection include: Assess where infill and extensional drilling is required to upgrade Inferred Mineral Resources and unclassified mineralisation. Once target areas are identified, assess what can be achieved more cost effectively from an underground drilling platform, taking into consideration ease of access, timing, drilling accuracy and usage of hole wedging methods.

Undertake a geotechnical data collection programme which will be critical to better understand mine design parameters like potential stope and pillar sizes, development offsets to stoping voids, mine modifying factors (overbreak), open pit wall angles and the impact of these on the project economics. AMC makes the following underground planning recommendations: Undertake next-study-level geotechnical assessments to understand the geotechnical constraints to establish the largest practical unsupported spans to maximise extraction (less rib and sill pillars) and/or to improve development efficiency via taller level intervals. This requires careful balancing of the development efficiency against the plan dilution.

Critically assess inclusion of incremental stoping resources. Obtain indicative contractor rates to conduct the conceptualised project works, confirm the processing cost and assumed site administration costs, to then confirm project viability accounting for capital estimates. There may be opportunities to rent the infrastructure, with the contractor to take on these items as part of their rates or to enter into other contracting agreements.

Identify local contractors with small profile equipment to ascertain the smallest on-lode sill development profile possible with trackless equipment, and based on this, re-assess the impact of on-lode sill development dilution on the inventory head grade. Enquire about acquiring specialist narrow vein equipment. If a suitable narrow vein development jumbo cannot be sourced, investigate the option to use traditional handheld airleg miners for the on-lode sill drive development and then use mechanised production drilling for the stope production.

Conduct next stage mine plan optimisation potentially using a combination of mining methods to address narrow versus wider lode areas, waste rock availability, delaying of capital development using a top-down extraction sequence in selected areas, etc. Conduct ventilation simulation analysis to e diesel dilution volumes and fan pressure requirements and required airway sizes to practically balance operating costs against capital costs.