Pinnacle Silver and Gold Provides Update on El Potrero Project

VANCOUVER, BRITISH COLUMBIA — January 13, 2026 — Leads & Copy — Pinnacle Silver and Gold Corp. (TSXV: PINN, OTC: PSGCF, Frankfurt: P9J) has provided an update on its El Potrero gold-silver project in Durango, Mexico. The company signed an agreement at the end of February 2025 to acquire up to a 100% interest in the project.

Robert Archer, Pinnacle’s President & CEO, stated that 2025 was a pivotal year for Pinnacle due to the rapid progress towards production on the Potrero project. After only 10 months, the company has established a substantial high-grade epithermal gold-silver system and is ready to initiate underground delineation drilling, followed by surface drilling to fill in gaps and test new targets. Metallurgical test work is continuing, and discussions are progressing for an offtake agreement to secure production financing. Project evaluations are also ongoing, with the goal of making another acquisition this year.

In 2025, geological teams traced the El Potrero Project’s low-sulphidation epithermal gold-silver system for more than 1,600 metres along strike and 500 metres in width in the northern part of the property. The team conducted extensive and systematic surface and underground mapping and sampling, comprising 1,196 samples. This included the definition of veins such as El Capulin and La Estrella that potentially expand the mineralizing system laterally and have more vertical continuity.

The company says this work has confirmed the geological model and is ongoing in developing a detailed understanding of grade distribution and exploration potential. Gold-silver mineralization of potentially economic grades in vein deposits typically occurs in pockets or zones, called ‘clavos’ in Mexico, and the detailed sampling has aided in defining these within the historic mine workings on the property. Drilling will further define their size, shape, and overall grade.

One feature of low sulphidation epithermal deposits is that the grades can be locally very high. El Potrero displays this characteristic with individual underground channel samples grading up to 85.1 g/t Au and 520 g/t Ag, while surface sampling returned similar gold values but higher silver grades up to 2,280 g/t Ag. Diamond drilling, more sampling, and mineralogical work will be necessary to determine if this indicates a vertical zonation of silver or simply a surficial feature.

A key component of moving towards production is the determination of a deposit’s metallurgy. Three samples were taken from underground at the historic Pinos Cuates mine, the central of the three main mines on the Dos de Mayo structure, and sent to SGS Durango for preliminary test work. Leach tests indicated gold recoveries ranging from 92.81% to 96.79% and averaging 95.09%. Silver recoveries were lower and more variable, ranging from 41.41% to 73.53%, averaging 54.68%. Mineralogical studies and further optimization will be required to obtain consistently higher silver recoveries.

The processing plant on site is estimated to be capable of processing about 100 tonnes per day, but will need new equipment. Pinnacle has cleaned up the plant site and surrounding infrastructure and conducted a preliminary assessment of the cost to rebuild the plant and install a dry-stack tailings facility. These estimates will be updated based upon the ongoing metallurgical testing.

Pinnacle hired Carlos Castro Villalobos as Project Manager and Jorge Ortega, P.Geo. as Project Manager and Exploration Manager, respectively. Pinnacle says the experience of these two gentlemen will guide the technical success of the project. The company says it has a 100% Mexican team in-country, ensuring strong relationships with local communities and government officials.

Pinnacle has held preliminary discussions with local communities to ensure strong positive relationships and formalize long-term access agreements. The communities are very supportive. One of those communities is Topia, a mining town and staging ground for Pinnacle and an excellent source of supplies, equipment, contractors and skilled labour.

Pinnacle has conducted meetings with SEMARNAT, CONAGUA, and CFE, and preliminary submissions have been made towards obtaining various permits. Pinnacle recently conducted an airborne LiDAR survey across the entire 11 km2 property, from which 64 adits, 6 shafts and 51 prospecting pits were interpreted.

Contractors were on site last week to assess the conditions of the mine workings in order to prepare proposals for the work. Priority is being given to delineation drilling of mineralized zones on the Dos de Mayo vein structure that will lead to a preliminary mine plan. The first phase of this work will comprise approximately 1,100 meters in about 50 holes, with each hole being in the range of 20-25 metres in length. Surface drilling will be initiated as soon as permits are in place. Seven more samples have been taken for continued metallurgical testing.

Discussions with SEMARNAT, CONAGUA and CFE are continuing with the aim of obtaining a permit for surface drilling, to be followed by additional permits as required for underground development and plant reconstruction. Discussions are also being held with local communities to obtain formal long-term access agreements.

For further information, contact info@pinnaclesilverandgold.com or +1 (877) 271-5886 ext. 110.

Source: Pinnacle Silver and Gold Corp.