Dual Revenue Model and Expanding Cash Flow Support Higher Valuation for Silver Bullet Mines

Silver Bullet Mines Corp. (“SBMI” or “the Company”) is a Canadian-based silver, gold, and copper exploration and development company. The Company’s primary asset is the Black Diamond (BD) Property, located near Globe, Arizona, which includes five past-producing, high-grade silver mines, including the Buckeye Silver Mine (“Buckeye Mine”) and a wholly owned mill in Globe, Arizona.
SBMI began production at the Buckeye Mine in 2022, but is currently prioritizing higher-margin production and generating revenue by processing mineralized material from the King Tut (KT) and Super Champ (SC) mines. The Company has also secured a direct ship ore (DSO) agreement covering material from its Arizona assets, and recently acquired the past-producing Columbia and Gold Queen mines to expand its hub-and-spoke processing model.
SBMI is also advancing its Washington Mine (WM) in Idaho, a historical silver and gold mine, which is being prepared for production. Additionally, the Company is exploring copper-gold porphyry targets on the BD Property.
(1.0) RECENT COMPANY UPDATES: (1.1) Offtake Agreements: SBMI received its first payment from Arizona operations, following multiple concentrate shipments from both KT & SC under its offtake arrangement. Five shipments have now been completed, marking SBMI’s transition into repeatable, cash-generating operations. (1.2) Other Arizona Activities: At KT, underground development has been completed and mining has commenced, with management expecting higher head grades from underground material. SBMI also secured a one-year DSO agreement covering up to 12,000 tons in 2026, enabling monetization of additional material outside the mill while maintaining production from SC. (1.3) Washington Mine Progress: In Idaho, SBMI advanced the WM through underground rehabilitation & surface sampling, reporting average silver assays of 33.9 oz/ton from recent work. Work continues as the Company finalizes third-party processing arrangements. (1.4) Strengthened Financial Position: In addition to prior equity financings totaling approximately $4.9 million in 2025, recent warrant exercises have added incremental working capital during the production ramp-up phase. (2.0) FINANCIAL ANALYSIS & VALUATION: (2.1) We are maintaining a Speculative Buy rating on SBMI and increasing our one-year Target Price to $0.70. (2.2) Our valuation is based on a 12-month forward-looking cash flow estimate from the expected production at KT and SC, the bulk sample from the WM, the recently announced DSO agreement, and assigning a $5 million value to the McMorris Mine and other legacy properties.