Bunker Hill Mining Corp. ("Bunker Hill") (TSX:BNKR, OTCQB:BHLL), and Silver47 Exploration Corp. ("Silver47") (TSXV:AGA, OTCQX:AAGAF, Frankfurt: QP2))) are pleased to announce that they have entered into a definitive arrangement agreement dated August 20, 2026 (the "Arrangement Agreement") pursuant to which Bunker Hill has agreed to acquire all of the issued and outstanding common shares of Silver47 by way of a plan of arrangement (the "Transaction"). Concurrent with the Transaction, the combined company (the "Combined Company") will seek a name change to "Bunker Hill Silver Corp." and remain listed on the Toronto Stock Exchange ("TSX").

Under the terms of the Arrangement Agreement, Silver47 shareholders will receive 0.1724 shares of common stock in Bunker Hill (each whole share, a "Bunker Hill Share") in exchange for each Silver47 common share (each, a "Silver47 Share") held immediately prior to the closing of the Transaction (the "Exchange Ratio"). Upon completion of the Transaction, existing Bunker Hill shareholders and Silver47 shareholders are expected to own approximately 57% and 43% of the outstanding Bunker Hill Shares on a basic basis, respectively. The Exchange Ratio implies consideration of approximately US$0.67 (C$0.93) per Silver47 Share based on the last closing price of Bunker Hill on the TSX on August 20, 2026. The consideration represents a premium of approximately 38% to Silver47’s last closing price on the TSX Venture Exchange (the "TSXV") on August 20, 2026 and an approximately 30% premium to the 20-day volume-weighted average price ("VWAP").

Bunker Hill and Silver47 will host a joint conference call and webcast today, August 21, 2026, at 10:00 am Eastern Daylight Time (EDT). Details provided below.

The Transaction will combine the operational Bunker Hill Mine located in the Silver Valley of Idaho with Silver47’s silver-focused U.S. exploration and development pipeline in Alaska, Nevada and New Mexico. As Bunker Hill ramps up to commercial production, the mine will act as the operating engine that funds growth and development near the Bunker Hill Mine, and throughout the Combined Company’s expanded U.S. exploration and development portfolio. Operating cash flow and a strong pro forma cash balance is expected to provide the necessary capital to complete aggressive exploration and development, and provide working capital for the Bunker Hill Mine.

Bunker Hill has arranged additional funding from two of its existing partners, entering into a US$10,000,000 concentrate prepayment facility with Ocean Partners UK Ltd. ("Ocean Partners") and drawing US$1,000,000 under its standby facility with Teck Resources Limited ("Teck").

Transaction Highlights & Strategic Rationale

Creating a New U.S. Silver and Critical Minerals Champion: The combination of Bunker Hill’s anticipated cash-flow from the Bunker Hill Mine with Silver47’s high-quality development pipeline establishes a new ‘Made in America’ U.S. champion in silver and critical minerals. Bunker Hill is currently listed on the TSX and in the U.S. on the OTCQB and is pursuing a listing on the NYSE American. There is no guarantee the Bunker Hill Shares will be listed on the NYSE American.

 

Enhanced Scale for a Producer Multiple: With a pro forma basic market capitalization of US$326M, increased trading liquidity, and a strengthened shareholder base, the Combined Company, with commercial production expected to be achieved at the Bunker Hill Mine and a pipeline of additional mineral exploration assets, is expected to realize opportunity to attract broader institutional ownership and index inclusion.

 

Clear Path to Annual Production of +5 Moz AgEq: Production is expected to ramp from +980 koz AgEq in 2026 to +2,500 koz AgEq in 2027 at the Bunker Hill Mine¹, with the Bunker Hill 2.0 expansion to 2,500 tpd — the largest mill in the Silver Valley — driving annual production toward +5 Moz AgEq per year.

 

Top-Tier Portfolio of U.S. Silver Projects with District-Scale Upside: The Transaction brings together four U.S. silver projects with an aggregate mineral resource inventory of 80 Moz AgEq measured and indicated and 308 Moz AgEq inferred (see mineral resource table below for resources by project). Three drill programs are currently underway across the portfolio and multiple district-scale systems provide exploration upside with the potential to expand existing mineral resources through future exploration success.

 

Strengthened Balance Sheet and Access to Capital: An enhanced treasury and improved access to capital position the Combined Company to support the ramp-up at the Bunker Hill Mine, and ongoing exploration and development across the portfolio.

 

Proven Operators and Proven Explorers: Combining Bunker Hill's mine-building, stakeholder engagement and operating expertise with Silver47's exploration and discovery track record, the Combined Company will benefit from deep capital markets experience and a board with major-producer, M&A, and government relations expertise.

 

U.S. Government Partner of Choice: The Combined Company is expected to leverage its established relationships with the U.S. EPA, U.S. EXIM Bank, the U.S. Department of Energy, and the U.S. Office of Strategic Capital to support project financing, permitting, and development as the United States continues to prioritize domestic mining and critical minerals supply chains.