Contango Silver & Gold Inc. Investor update

Of Contango Silver & Gold, Shawn Khunkhun, the company's president, and on-site Dave Larimer, the company's rock star and VP exploration. To run through the very exciting mineral resource estimate at the Kitswalt Valley project in British Columbia. Gentlemen, how's everything going? Yeah, it's great.

You know, Beaver Creek this time of year is always beautiful. Fall colors. Nice crisp air. Not a better place to be than everybody's excited, so.

Awesome. No, glad to hear it. Here's how today is going to work, just for the folks in the room. I'm going to do some really quick housekeeping, then we'll get into the protein fast, I promise. I'm going to ask the gentleman here some questions, just based on the press release. But this is an open forum. Please do use the chat button at the bottom of the screen. I know several of you have already sent questions in over email. We'll get to those. Once I'm done prepared questions, then I'll try to get to as many as I can in the chat. Get them in early, and I'll likely get to them. But if for whatever reason I can't get to your question, I'll make sure the Contango Silver & Gold team gets them and is able to get back to you quickly, using either your phone number or email found at registration. The only other thing I'll say is this event is being recorded, and will be available for replay in the late afternoon Eastern Time. It'll pop right in your inbox. We'll also be available on Six's YouTube channel. But okay, let's get into the good stuff.

I was very excited to read this press release. Rick, I'm going to start with you, and then Shawn, I want to kind of hear your perspective. The headline number, obviously a very exciting 93% increase in indicated resources. To just shy of 90 million ounces of silver equivalent. So before we get into how you got there, which I do want to do, give us a big picture. What does this estimate tell investors about what Contango actually owns in the golden triangle right now?

A lot of silver. When we combined companies, we actually got booted out of the zilch. And we were not happy about that. And so this is kind of a statement piece that says, hey, guys, this is the largest silver resource in Canada. Don't forget about us. And it's high-grade silver. It's close to 10 ounces. It's over 10 ounces of silver equivalent per ton. And that equivalent is made up of gold. It's not. It's only 10% of the equivalent number is made up of base metal. So this is a precious metals silver-biased big high-grade silver deposit. So it's like, hey, we're coming. We're coming back on the zilch.

That's exciting. Shawn, I'll throw it to you, obviously. You're very, very familiar with the project. For your perspective on this, I'm very.

Yeah. Look, we're the project is located in what they call the golden triangle. There's been a lot of silver discovered up in the golden triangle, and there's been a lot of silver produced up in the golden triangle. And so we've identified the largest silver resource in Canada. Primary silver. Romeo, you highlighted the big increase in the indicated category, and you expressed a silver equivalent. If we just looked at the silver resource, we're talking 83 million ounces of high-grade primary 300 gram per ton silver and a million ounces of gold. So what this gives Contango is it gives us a high degree of confidence in a very, very unique globally unique project. And again, and one thing I want to highlight here is we've got one of the largest land packages in that golden triangle. And this resource only represents maybe 3% of that entire land package. These deposits are open. They've really except for one exception have not been drilled to a greater depth than 300 vertical meters. So we're open at depth. We're open along strike. And the company this year in 2026 is in the midst of a 53,000 meter drill program that has not been incorporated into this estimate, but will be incorporated into the next one.

And the last thing I'll say is when a company puts out a resource estimate, you've got to look at the data. This resource estimate is built on almost half a million meters of drilling. And almost 2,000 drill holes. So the amount of confidence we have in this resource is very high.

I appreciate that very much. And thanks. For both of you giving your perspective. But Dave, with respect to Shawn and Rick, you're the star of today's show to some degree. You're the guy who signed off on these numbers. So I'd love to start with the language in the MRE. Indicated versus inferred. Obviously, we talk about it a lot on these kind of calls. In plain English, and keeping in mind as far as I know, Rick is threatening to cut you off if you get too technical. What does it mean that 90 million ounces now sit in the indicated category?

Yeah, yeah. Plain English. You know, the difference is basically indicated and inferred. It's just a level of confidence that you have in that estimate. If you start on the lower side, you know, the inferred resource, it's supported by drilling. Geologic evidence. But the drill space is generally a little wider. There's a little more uncertainty in that continuity. But that's how you build these things up. You believe the mineralization is there, but additional drilling is needed to tighten that geology and the continuity through that. You take that to the next higher category, that indicated resource category. It has closer spacing. Stronger geologic support. And it gives you greater confidence that the amount, the grade, the shape, and the continuity of that mineralization is there. Additionally, it's that indicated category is considered reliable enough just to start your meaningful engineering and economic evaluations at this level. Which we're moving forward to in the initial assessment. So when you look at that 90 million silver equivalent ounces in that indicated category, that's a large portion of the project that is now defined at that higher level, that technical confidence that we have. It gives you a strong foundation, evaluating that future potential mining approaches, processing options, and those different deposits on how they start to fit together in the development plan.

I will have to say, at the end of the day, this is a mineral resource. I got to throw on my QP hat. This is not a reserve. It doesn't demonstrate economic viability. But it is significant improvements at this scale in confidence of the resource. It can help us maneuver into the next phase of the project. But without getting too much more technical, I'll kind of leave it there. But I could dive all day if we want on geostatistics and math on this. But I'll leave it there for any follow-up questions on it.

I might have to do a separate section with just you, me, and the nerds in the audience for one of of those. But I do have one question. Because a couple of Sharpe investors did ask, over email, inferred ounces did come down about 25% from the 2023 numbers. Walk us through why a smaller inferred inventory coming out of this remodel is a sign the estimate got better, not that the ounces went somewhere.

Nope, absolutely fair question. That's an important question. I would caveat that by saying the first thing that I think is important is the objective of any mineral resource estimate is not to maximize your number of ounces, but it's to produce the most accurate defensible representation of that mineralization supported by the available drilling. A lot of available drilling that went into this and the significant part of this reduction of the inferred ounces reflects a successful conversion from the inferred into the indicated category. Looking at that indicated silver equivalence, we increased that by approximately 43 million ounces, while the inferred decreased by 22 million ounces. Again, it's not a one-for-one conversion, but the overall movement into that larger, higher confidence resource is an extreme success for us. We also looked at the remodeling. When we talk about the data, the amount of data that went into this, we were able to apply tighter geologic controls, better data, better understanding of the geology that's sitting in that mineralized bodies. And we've rebuilt these mineralized domains. And all the data that supports it behind it. In some areas, this brought the mineralization into the better defined shapes. And in other areas, this material that was previously extrapolated from the last drilling was a little too broad.

And it was no longer supported in this estimate. So the ounces didn't simply disappear. Some of them moved to that higher confidence, indicated category, while others were refined. Removed from the reported inventory because the new model is what we consider more disciplined. And this is what a good mineral resource model does. And an update. It should reflect the data, that supports it, and then rather than just preserving ounces and throwing everything in there, it maintains that discipline approach of what's there.