Axo Metals Reports Early Drill Results at San Antonio Gold Project, Advances Towards Economic Study

• The best hole from the first batch of results returned 23.6 metres grading 2.13 grams per tonne (g/t) gold from surface, indicating mineralisation that begins at ground level.
• Early drilling at the Sapuchi deposit is intersecting gold grades above the cut-off threshold in areas previously classified as waste in the 2021 resource model, which may affect the size of the mineable resource.
• Channel sampling at the untested El Tigre zone, located outside the existing resource boundary, returned grades as high as 6.24 g/t gold over 5.4 metres, with broader intervals also returning notable grades.
• P&E Mining Consultants has been engaged to complete a Preliminary Economic Assessment (PEA), an industry-standard study that models the financial viability of a mining operation, with completion targeted for late third-quarter 2026.
• San Antonio currently holds a total resource of 576,000 ounces of gold in the Indicated category and 544,000 ounces in the Inferred category. The new resource estimate and PEA will apply updated gold price assumptions, compared to the US$1,750 per ounce figure used in 2021.

Axo Metals Corp. (TSXV: AXO) is a Canada-based mineral exploration company with two projects in Mexico. Its flagship asset is the San Antonio gold project in Sonora, an advanced-stage property with a defined multi-hundred-thousand-ounce gold resource across multiple deposit types. The company also holds the La Huerta copper property in Jalisco, where early exploration has returned high-grade copper at surface and at depth.

Initial Sapuchi Deposit Drill Results and Resource Upgrade Programme

Axo has released assay results from the first 21 drill holes, covering approximately 3,000 metres, all focused within and around the Sapuchi deposit. Sapuchi is being evaluated as a potential starter pit for the San Antonio project, given its high-grade oxide gold resources and relatively flat terrain. The 2021 resource estimate placed Sapuchi's oxide material at 53,000 ounces in the Indicated category and 75,000 ounces in the Inferred category.

The standout result from this first batch is hole SOSAP-26-020, which returned 23.6 metres of 2.13 g/t gold beginning at surface. The same hole also returned additional gold-bearing intervals at 7.5 metres grading 1.45 g/t and 3.8 metres grading 1.24 g/t. Other holes confirmed continuity of mineralisation, with SOSAP-26-021 returning 27.1 metres at 1.31 g/t and SOSAP-26-018 returning 26.8 metres at 1.33 g/t.

Several holes are intersecting gold grades above the cut-off threshold in areas the 2021 resource model had classified as waste. Hole SOSAP-026-013, for instance, intercepted 27.9 metres at 0.43 g/t gold approximately 100 metres north of the nearest previously modelled ore domain. The full Sapuchi programme is planned for 25,000 metres, and results will feed into the updated resource estimate.

El Tigre Zone Channel Sampling Results and Drill Programme Commencement

The El Tigre zone covers a footprint of roughly 1,500 metres by 500 metres and sits outside the boundaries of the 2021 resource estimate. Axo conducted structural mapping followed by channel sampling, a technique where rock is sampled continuously along a line to provide a representative grade over a defined distance. Drilling at El Tigre is set to commence shortly, with an initial budget of 5,000 metres.

Results from three separate channels have been returned. One yielded 1.11 g/t gold over 68.6 metres, including a higher-grade section of 4.00 g/t over 12.2 metres. A second channel returned 0.82 g/t over 46.8 metres with an internal interval of 5.76 g/t over 4.9 metres, and a third returned 6.24 g/t over 5.4 metres. These results will be used to guide the upcoming drill programme at El Tigre.

Axo also has access to an on-site laboratory, a legacy of San Antonio's prior production history. This allows grab and channel samples to be processed directly at the project, while all drill core continues to be sent to an independent third-party laboratory for certified assaying.

Preliminary Economic Assessment Initiation and Updated Resource Estimate

Axo has retained P&E Mining Consultants to complete a PEA for the San Antonio project, with work already underway. A PEA is an early-stage economic study that estimates costs, revenues, and potential returns based on a defined mining scenario, and is one of the standard steps in demonstrating a project's financial case. The study is expected to be delivered by late third-quarter 2026.

The PEA will incorporate a new resource estimate using the same drilling database as the 2021 estimate but with updated commodity price assumptions. The 2021 resource was modelled using a gold price of US$1,750 per ounce, and the new estimate will apply a revised figure to reflect current market conditions. Both the updated resource and the PEA are expected by the same timeline.

President and Chief Executive Officer Jonathan Egilo commented:

"Initial results at the Sapuchi deposit have proven very encouraging, highlighted by strong grades being seen directly from surface. We are also excited to be testing prospective areas beyond the resource boundary, following up on excellent work by our field team that has been generating targets."

Outlook

Axo is advancing on three fronts at San Antonio: an ongoing 25,000-metre drill programme at Sapuchi, an upcoming 5,000-metre drill programme at El Tigre, and a PEA targeted for completion in late third-quarter 2026. Investors should watch for further drill results from both Sapuchi and El Tigre, as well as the updated resource estimate and PEA.

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