Silicon Metals Corp. Announces Various Corporate and Operational Updates

Vancouver, British Columbia--(Newsfile Corp. - August 21, 2025) - SILICON METALS CORP. (CSE: SI) (FSE: X6U) ("Silicon Metals", "Silicon", or the "Company") is pleased to announce various corporate and operational updates.

The Maple Birch Project - Permitted for production of up to 3,000 tonnes per year

As announced on August 12, 2025, and further to its news release dated July 15, 2025, Silicon made the final cash payment of $25,000 (for an aggregate payment to date of $50,000 cash plus 500,000 common shares) to Geotek Exploration and Prospecting Ltd. (the "Optionor"), pursuant to the Company's recently announced option (the "Option") to purchase an undivided 100% right, title, and interest in Aggregate Production Permit AP6453 (the "Production Permit") located in the world class Sudbury Mining District of Ontario, Canada.

The balance remaining of the payments to be made under the Option are as follows:

• On or before twelve (12) months following the CSE approval date, issue the Optionor 1,500,000 common shares; and
• On or before eighteen (18) months following the CSE approval date, issue the Optionor 1,500,000 common shares.

All securities issued in connection with the Option will be subject to a statutory hold period expiring four months and one day after the date of issuance, as set out in National Instrument 45‐102 - Resale of Securities.

The Silicon technical team has recently completed a reconnaissance program at Maple Birch in preparation for a 2025 Q4 work program, which is anticipated to be the beginning of extraction, hauling, processing, and delivery of high-purity pegmatite quartz. The work performed during the reconnaissance program included an assessment of the existing access roads in preparation for a rehabilitation and access plan, a tour from a potential contract mining company, and a 200 kg sample of ore was collected for advanced testing.

Silicon is thrilled to have the necessary funds in hand to execute the extraction of the first 3,000 tonnes as per its Production Permit, and is optimistic this will result in pathway to a non-dilutive way of adding capital to the Company as early as 2026. More details of the metrics and framework around this program will be announced as they become available. Additionally, the Company is planning other exploration work on the ~2,000 hectare property with the goal of identifying additional zones of high purity quartz mineralization.

The Ptarmigan Silica Project

Silicon is also very pleased to announce that it has received a five-year (5) Mines Act Permit and Free Use Permit from the B.C. Ministry of Mining and Critical Minerals, authorizing the Company to conduct its proposed exploration activities at its 100%-owned Ptarmigan Silica Project, located approximately 130 kilometres southeast of Prince George, British Columbia.

The permits, which are effective from July 31, 2025, to December 30, 2030, provide Silicon Metals with the necessary approvals to carry out a wide range of exploration activities, including surface drilling, trenching, bulk sampling of up to 2,000 tonnes, and construction of exploration access trails and infrastructure. These permits mark a major milestone for the Company as it aims to unlock the high-purity silica potential of the Ptarmigan Silica Project.

Obtaining this permit is a crucial piece of our British Columbia project portfolio. Work to date includes property wide sampling (2024) which resulted in numerous samples returning 99.9% purity (detailed in Silicon's news release dated June 04, 2025), a high definition LiDAR and ortho-imagery survey (detailed in Silicon's news release dated July 14, 2025), collection of bulk sample for metallurgical testing (June 2025, ongoing), structural mapping, ground truth, and sampling (completed August 6^th, 2025), and preliminary 3D modeling (ongoing).

Morgan Good Silicon's Chief Executive Officer and Director, commented: "We are pleased to be updating our audience with the last few months of efforts as they constitute a couple of major milestones for Silicon. Not only do we have a funded plan for work at our Sudbury Ontario based Maple Birch Project that is permitted to produce up to 3,000 tonnes per year, but we also received our 5-year Mines Act Permit and Free Use Permit including drilling for the British Columbia based Ptarmigan Silica Project. One provides the Company with near term potential cash flow anticipated in 2026, and the latter allows us to fine tune our Phase 1 drill program planning for Ptarmigan in or around Q2 2026, which increases exploration potential for size and grade."

Shares for Debt Issuances

Silicon also announces that it has agreed to issue an aggregate of 923,075 common shares to settle debt of $60,000 to certain consultants and Directors of the Company at a deemed price of $0.065, for amounts owed by the Company for unpaid services (the "Debt Settlement").

Accordingly, the portion of the Debt Settlement with the Directors constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance of the Shares to the Directors is exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company's Shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) as the value of the Shares being issued under the Debt Settlement does not exceed 25% of the Company's market capitalization.

All securities issued in connection with the Debt Settlement will be subject to a statutory hold period expiring four months and one day after the date of issuance, as set out in National Instrument 45‐102 - Resale of Securities.

Technical Information

Raymond Wladichuk, P.Geo., COO of Silicon Metals Corp., a qualified person as per National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific information in his new release. Mr. Wladichuk is a professional geoscientist registered in British Columbia and Ontario.

About Silicon Metals Corp.

Silicon Metals Corp. is currently focused on exploration and development in Canada, namely British Columbia and Ontario. The Company's Maple Birch Project, located approximately 30km south-east of Sudbury, Ontario, is a high purity quartz pegmatite project with a 3,000 tonne per year production permit. The Company also holds an undivided 100% right, title, and interest in the exploration stage and now fully 5-year permitted Ptarmigan Silica Project, located approximately 130km from Prince George, British Columbia. The Company has also acquired an undivided 100% right, title, and interest in both the exploration stage Silica Ridge Silica Project located approximately 70kms southeast from the town of MacKenzie, British Columbia, as well as the exploration stage Longworth Silica Project located approximately 85km East from Prince George, British Columbia.

ON BEHALF OF THE BOARD OF DIRECTORS OF

SILICON METALS CORP.

"Morgan Good"

Morgan Good
Chief Executive Officer and Director

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE accepts responsibility for the adequacy or accuracy of this release).

Cautionary Note Regarding Forward-Looking Statements

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the development and plans for the Production Permit, the issuance of the Shares to the Optionor, the proposed exploration of the Ptarmigan Silica Project, potential cash flow anticipated for the Company in 2026, and that the Company intends to tune its Phase 1 drill program for the Ptarmigan Silica Project and the timing thereof, and the expectation that this will increase exploration potential for size and grade of the project.

Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. In making the forward-looking statements in this news release, the Company has applied certain material assumptions, including without limitation, that the Company will be able to execute its plans for the development of the Production Permit, that the Company will have all the necessary resources, including personnel and capital to carry out its business plans, including the proposed exploration of the Ptarmigan Silica Project, that the Company will be successful in having cash flow in 2026 and that the Company will proceed with tuning its Phase drill program for the Ptarmigan Silica Project within the time frame expected and that this will result in increasing the exploration potential for size and grade of the project.

These forward‐looking statements involve numerous risks and uncertainties, and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, that the Company may not be able to develop the Production Permit as anticipated, that the Company will be unable to carry out its business plans as disclosed, including the proposed exploration of the Ptarmigan Silica Project; that the Company will fail to have cash flow in 2026; that the Company will fail to fine tune its Phase drill program for the Ptarmigan Silica Project within the time frame expected or at all, and that doing so will not increase the exploration potential for size and grade of the project; changes in applicable legislation impacting the Company's exploration plans; unanticipated costs; loss of key personnel; failure to raise the capital required to carry out the Company's business plans.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/263295