Currently, Silver Wolf Exploration Ltd. is in the process of completing the environmental permitting for its three claims, in anticipation of commencing the proposed drill program later this year. Each area is permitted separately, as per the Mexican MIA procedures, and as such, each area will be permitted in order of drill priority. Through relationship with Avino Silver and Gold Mines Ltd., Silver Wolf is able to utilize drilling rigs at a discount and substantially reduce the cost of drilling on a per meter basis, which provides a compelling competitive advantage to some of peers.

The first priority for exploration drilling is at El Soldado, the southern claim block. These claims are located in an area that is prolific for carbonate replacement deposits (CRDs). These are typically high grade, and the work from 2021/2022 program has shown high grade values and geological hallmarks that suggest a CRD may be present and is worth prioritizing.

The El Soldado claim is hosted by the Cretaceous Aurora limestone formation. It has been observed that Ag-Pb-Zn mineralization has a preferred linear orientation along a NW-SE trend. Mineralization is hosted in recrystallized limestone associated with a system of mantos and breccias with thicknesses ranging from 15 to 50 cm, and the presence of fine-grained black sulfides.

Mineralized breccias contain sulfide clasts of 0.5 to 1 cm size with presence of abundant calcite veins and oxides such as hematite and jarosite. Common hydrothermal minerals also include calcite, siderite, manganese, and quartz. The orientation of mineralized breccia bodies is controlled by NW-SE and NE-SW structures with inclinations ranging from 55° to 75°.

The folding of the limestone units is interpreted to control the location of mineralization. The second priority is the skarn zone at the La Recompensa claim. A skarn structure has been identified outcropping on surface and has been traced to the length of the claim on the boundary between the El Sarnoso intrusive rock and the Aurora limestone country rock.

An airborne magnetic survey performed in 2022 confirmed the extent of the skarn structure as well as identifying its size. Silver Wolf will begin the drill program on this claim after reviewing the results of the southern claim to ensure a measured approach to drilling is taken. With 2022 presenting a number of challenges in the mineral exploration space as interest rates increased, economies around the world delevered, and investors shifted away from higher risk asset classes, Silver Wolf continues to focus on what it can control.

This includes managing spending rate while maintaining a tight share structure, expanding the geological team through the Company's extensive wealth of industry experience and connections, and undertaking detailed and practical geological work to refine and prioritize top drill targets. The Company's goal is capital efficient exploration so that more dollars go directly into the ground to provide the best opportunity for a significant mineral discovery.