RCM: Now drilling to expand 67 million ounce silver equivalent resource as silver price breaks new records every day.

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 13,213,571 RCM Shares at the time of publishing this article. The Company has been engaged by RCM to share our commentary on the progress of our Investment in RCM over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs.

Silver cracked through US$47 per ounce this week...

And is now only a few dollars from its ALL TIME highs...

If silver breaks through US$50 it will be the highest price it has ever been - and from there who knows what could happen...

(other than silver stocks should all have a great run)

One of our latest silver Investments is Rapid Critical Metals (ASX:RCM).

RCM has 67M ounces of high grade silver equivalent resource estimates (at around 400 g/t AgEq) in NSW, across three projects.

RCM is Australia’s highest grade, undeveloped, silver equivalent company.

Three big institutions came in on the last capital raise, which is when we Invested:

Sprott, Tribeca and Jupiter Asset Management - combined they will own 25.5% of the RCM register by early November (more on these guys below).

RCM is now targeting 100M ounces of silver equivalent resource estimates, via organic growth (which means drilling out its current assets - and RCM is drilling right now).

(Source)

In recent weeks/months we have been writing about a generational “cup and handle” forming in the 50 year silver price chart.

It looks like we have definitely entered the stage where the silver price tries to break out of the handle now.

Here is what typically happens when a chart puts in a cup and handle formation and then starts breaking out:

The question now is - will the silver price rally to well above its old all time highs? and how high can it go?

No one knows, but we think a clean breakout could really accelerate market buying in ASX listed silver companies...

We Invested in RCM at 3.5c only two weeks ago.

RCM now up to 8.5c - already up 143% from our Initial Entry Price.

(past performance is not an indicator of future performance)

Those price moves have been before RCM has put out any material news.

RCM just raised $14M cash at 3.5c, and as we flagged above, brought on some serious heavy hitters to the register including:

• Eric Sprott - Canadian billionaire mining investor that made his fortune off Kirkland Lake Gold. Now he runs Sprott Asset Management and is known for backing junior mining companies in gold and silver. (Sprott just lodged a substantial holder notice for RCM, and now owns 6.67% of the company).
• Tribeca Investment Partners - Australia’s largest natural resources fund with $3B+ assets under management.
• Jupiter Asset Management - Active resources fund based in the UK, backed a number of other investments in our Portfolio including Mithril Resources.

Between them, they took $10.5M of the $14M capital raise.

Post an EGM later this year, combined they will hold 25.5% of RCM shares.

Here’s the substantial holder notice from billionaire Eric Sprott (who is probably one of the most well known names in the silver investor community):

(Source)

Eric Sprott is known by some to be one of the “greatest resource investors ever”. (Source)

He is arguably the most famous silver bull on the planet and is on the record saying that he expects silver to do US$50-70/oz:

(source).

Eric coming on as a substantial shareholder (as well as Tribeca and Jupiter’s big positions pending the EGM) should mean RCM is front and centre of the market's mind when looking for silver exposure.

The market always tends to follow institutional money, so having three big names on the register casts a big international spotlight on RCM’s project.

IF Eric Sprott and his team like a stock, it's hard not to feel a little more at ease in a particular name...

Post the capital raise, RCM will have pro forma cash of $18.4M (source), which is the cash runway to drill out and grow its resource base.

RCM target is to take the assets towards 100M silver equivalent ounces “organically”:

(Source)

AND RCM is drilling right now with two rigs on site in an area of its projects where previous drilling has hit grades as high as 2,422g/t silver...

(Source)

Catalysts we are watching out for on RCM

The two main catalysts for RCM in the short term are:

1. Drilling results from RCM’s Webbs project.
2. Acquisition of the Webbs Consol project.

Catalyst 1: Drilling results from RCM’s Webbs project

RCM currently has two rigs drilling its Webbs project, aiming to:

1. Upgrade the existing resource estimate - That should mean we see a few holes with high grade hits from in and around the existing resource estimate.
2. Test for extensions to the south and west - which might attract more patient capital who take a longer term view on the potential of the assets).

One hole from the south had previously hit 9.6m at 2,422g/t from 83m. Anything similar to that could really get the market moving:

(Source)

We also note RCM going to drill test for a “parallel lode” to the west - this could be big if it comes in:

(Source)

Catalyst 2: Acquisition of the Webbs Consol project

Beyond the drilling at Webbs, we also want to see RCM complete the acquisition of the Webbs Consol project.

Once complete RCM will be the first company to consolidate the ground around its Webbs resource inside one entity.

The deal adds scale to RCM’s Webbs deposit and now means there will be ~46.3M ounces of silver equivalent resources all within a few km of one another.

Once the deal closes we can finally see RCM drill out the ~12km of strike in and around the two deposits:

We think it’s possible RCM can multiply its current high grade 67M ounce resource base over the coming years, in a bull market for silver.

(Source)

Next for the deal is a general meeting for shareholders to approve the transaction.

After that we expect to see drilling really fire up on these projects...

Which we think the market will like especially given the old hits from the project:

10 reasons why we are Invested in RCM

Below are the key reasons why we Invested in RCM from our initiation note on 17th September 2025.

Note: Some of the calculations in the reasons may be out of date, given the recent run in RCM’s share price.

Check out the full initiation note here: Our New Investment: Rapid Critical Metals (ASX: RCM

1. RCM has an estimated 67M ounces of high grade silver equivalent JORC resource estimates. We think it can grow bigger.

Across all its nearby projects, RCM will have an estimated ~67M ounces of high grade silver equivalent JORC resources. With capital to put into drilling now, we think RCM can multiply this resource with new discoveries and by extending its existing discoveries.

UPDATED: In RCM’s most recent investor presentation it stated a strategy of targeting 100M ounces of silver equivalent resources.

2. We like silver

Silver is now at 14 year highs, and we think its about to go on a once in a generation run to new all time highs (no guarantee of course).

Update: Since announcing our Investment in RCM silver hit new highs at US$47/oz.

3. There are very few silver exposures on ASX

There are very few silver names on the ASX. If silver runs, there could be a lot of capital chasing silver exposure in only a handful of names. This scarcity could mean valuations run from where they are now.

4. Silver stocks on the ASX (like RCM) are cheap relative to other exchanges

We think silver is misunderstood on the ASX and as a result, silver companies are not being valued in line with peers on North American exchanges.

We think that a big silver bull run could change that very quickly.

5. RCM is relatively cheap compared to other ASX listed silver stocks

RCM trades at an EV/silver equivalent JORC resource estimate of ~$0.38 per silver ounce equivalent (following the settlement of RCM’s latest acquisition).

NSW peer Silver Mines trades at a ~$1 per silver equivalent ounce.

This is before any of the exploration upside if factored into RCM.

6. We are Investing alongside Tribeca, Jupiter Asset Management and Eric Sprott

We have had success Investing alongside Tribeca (with Locksley Resources) and Jupiter Asset Management (with Mithril Silver and Gold).

Eric Sprott is also one of the most well known silver investors in the world.

We are following them all into RCM.

7. We know two of RCM’s projects really well

We were previously Invested in RCM’s Webbs and Conrad projects through a previous Investment (TMZ) which we held when silver was <US$25 per ounce.

TMZ back then hit a market cap >$50M.

Unfortunately, TMZ made a few errors and the company ended up suspended for years, and despite an attempted re-listing, it eventually sold its assets to RCM for a $6.5M cash and shares deal. We still hold a position in that unlisted vehicle now called SMG (ex TMZ) but unfortunately not sure what will happen to that.

Now with silver at US$42+ per ounce we think the same assets could be valued much higher in the current corporate vehicle (RCM).

8. We like the recent acquisition RCM completed

RCM just acquired a neighbouring deposit, adding a 32M ounce silver equivalent JORC resource estimate to its overall resource base.

9. Exploration upside (project area now 26x bigger)

We like the recent addition of ground around the newly acquired asset and RCM’s existing Webbs deposit.

The project area is now ~26x bigger and RCM will fully own the geological trend in between its two deposits.

None of this area has been drilled systematically - RCM plans to change this over the coming months.

10. Critical Metals “Side asset” in Canada could also come good

RCM also owns 100% of a germanium/gallium project in Canada. The project is at a very early stage, but previous drill holes have shown some of “the highest germanium grades globally”.

We didn’t Invest in RCM for this asset, however it could become a dark horse in RCM’s Portfolio of projects.

Ultimately, we want to see RCM drill out its silver assets in NSW and put together a resource base larger than where it is today which warrants taking the projects into development.

This also forms the basis for our RCM Big Bet which is as follows:

Our RCM Big Bet:

“RCM expands its existing silver resource through new discoveries into a silver bull market and re-rates by over 1,000% from our Initial Entry Price”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our RCM Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

What are the risks?

The two main risks we see for our RCM Investment in the short term are “exploration risk” and “deal risk”

Exploration risk because RCM is drilling right now and there is no guarantee that the company finds anything that is economically significant.

Poor exploration results could negatively impact RCM’s share price.

Exploration risk

There is no guarantee that RCM’s upcoming drill programs are successful. RCM may fail to find economic silver resources in which case we would expect the share price to re-rate lower.

Source: “What could go wrong” - RCM Investment Memo 17 Sep 2025

There is also an element of deal risk because RCM will need to get shareholder approvals to complete the acquisition from Lode Resources.

There is no guarantee the deal gets completed, despite the advanced stage nature of the deal.

We have seen plenty of deals fall through at really late stages in a deals life cycle.

IF the acquisition failed to go through we would expect a sell off in RCM as the market would have started pricing in the deal already being completed at today’s RCM share price.

To see a list of other risks check out our RCM Investment Memo.

Other Risks

Investing in RCM carries other risks which may affect the value of the company.

There is also market liquidity risk. As a small cap company, RCM’s shares may be thinly traded, and this could result in significant share price volatility or difficulty for investors seeking to enter or exit positions.

Broader geopolitical and macroeconomic factors may also impact the company’s prospects. A global economic slowdown, reduced demand for silver, or geopolitical instability could materially affect silver prices and investor sentiment toward the resources sector.

Environmental, social, and governance risks must also be considered. Any future changes in environmental regulations, permitting requirements, or opposition from local communities could delay or prevent project development.

Finally, there is execution risk. Even with funding secured and exploration programs underway, there is no guarantee RCM will deliver successful exploration results, expand its resource base as anticipated, or progress toward development within the expected timelines or budgets.

Investors should carefully consider these risks and seek professional advice tailored to their personal circumstances before investing.

Our RCM Investment Memo

Our Investment Memo provides a short, high-level summary of our reasons for Investing.

We use this memo to track the progress of all our Investments over time.

Click here to read our RCM Investment Memo where you will find:

• What does RCM do?
• The macro theme for RCM
• Our RCM Big Bet
• What we want to see RCM achieve
• Why we are Invested in RCM
• The key risks to our Investment Thesis
• Our Investment Plan