Silver about to pop? PAT to drill up to 774 million ounce silver exploration target.

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 19,130,000 PAT Shares and the company’s staff own 750,000 PAT Shares. The Company has been engaged by PAT to share our commentary on the progress of our Investment in PAT 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. Any forward-looking statements are uncertain and not a guaranteed outcome.

“One of the largest undeveloped silver systems globally” can now be drilled.

For the first time in over a decade... and it's happening very soon

We think silver is going on another major run even higher...

and if it does it will take small ASX silver stocks with it (again) - past performance is not an indicator of future performance.

(convinced enough on a near term silver run to have purchased “silver to $106 by November 2026” call options a couple of weeks ago - absolutely NOT financial advice, they are already down a lot)

Today our silver Investment Patriot Resources (ASX:PAT) got “Land Access approvals” for exploration on its silver project in Peru.

Meaning PAT has everything it needs to drill its 31.4M ounce silver equivalent JORC resource estimate.

Which sits inside a giant independently verified JORC exploration target of 559 Million ounces to 774 Million ounces silver equivalent.

(note exploration targets are conceptual in nature and it is uncertain whether more exploration will result in a mineral resource estimate)

PAT also confirmed drilling would “commence shortly” - so not long to go now.

(source)

PAT’s just raised $3M in cash too (at 5.5c per share) so the company's cash balance won't be holding it back either.

We participated in the capital raise and Increased our Investment in PAT too.

All we need now is a couple of big drill results from PAT into (hopefully) a running silver price.

Finally, over the coming months, we will find out what was compelling enough about this project for it to have once been owned by mining giant $49BN Teck Resources.

And to see PAT do what Teck couldn’t - actually drill into the giant JORC exploration target.

A reminder if you are new:

$49BN Teck had this project optioned between 2019-2024, before PAT acquired it.

Mining majors don’t mess around when collecting pre-drill data.

They spend big, take time and have big technical teams - unlike cash, time and team constrained micro cap explorers.

Teck collected pre-drill data on the project for that entire 2019-2024 period.

Imagine if a micro-cap ASX explorer told the market it wanted to do four years of sampling work before drilling anything.

Teck ran ~36km of IP geophysics across it.

Built an (expensive) 3D geological model.

Had 1,832 surface samples.

Then, right before drilling the project, Teck’s board of directors pivoted the entire company's focus to copper...

and told everyone in the company to stop work on any non-copper projects.

Mining major Teck wouldn’t spend four years of a technical team's time on something that looks like “just” a 31Moz inferred JORC resource estimate.

The company would have been looking for the much bigger system hiding underneath.

(mining majors generally only go after Tier 1 global asset potential)

Maybe something like PAT’s giant 559 Million ounces to 774 Million ounces silver equivalent JORC exploration target...

PAT now has the benefit of all that data AND the data from companies who owned the asset before (there is some drilling data from 2010).

Since acquiring the asset, PAT delivered the first-ever integration of 20+ years of multi-source datasets into a single JORC-compliant geological model which shows:

• A structure over 2,880m north-south by ~950m wide, down to ~550m depth
• 19 mineralised zones across the corridor (the current 31.4 Moz Inferred Resource is in just 3 of them)
• 479 to 663 Moz of silver at 42-49 g/t - confirming this is a silver-dominant system, not a headline dressed up with base-metal credits
• 1,832 surface samples, 8,500m of historical diamond drilling,
• ~36km IP geophysics,
• ~70km ground magnetics

Which culminated into this image:

(source)

Finally now, PAT can go and explore this project.

When PAT starts drilling we want to see two things.

First is to see PAT hit silver in the red parts of the image above (where the JORC exploration target is).

Second is to see PAT test the gold potential of its project (which has never been drill tested properly).

We are Invested in PAT primarily for the silver BUT PAT’s project is ~18km away from the San Gabriel gold mine owned by $12BN Buenaventura

(Source)

PAT’s project is also ~16km away from the ~6M ounce gold, ~46M ounce silver Chucapaca deposit owned by Goldfields/Buenaventura.

And similarly to that mega deposit - PAT’s project has deeper gold targets (that have only ever had three holes put into them).

All three of those old holes hit gold (albeit at low grades) - 81.9m at 0.41 g/t gold and ~234m at 0.25g/t gold.

The CEO of the previous company that owned PAT’s project said this in 2010:

"multi-phase nature of the volcanic diatreme complex at Tassa as well as the presence of similar host sediments to the nearby Chucapaca gold discovery”.

(source)

It will be interesting to see what PAT can find with some deeper drilling...

Ultimately, we think PAT got hold of an asset that has been largely ignored by explorers (probably because of a low silver price) for over a decade.

And now ~16 years and all of that Teck work later - PAT’s got all of the approvals in place to go drilling...

Maybe (with some luck) PAT will be drilling its giant exploration target just as the silver price starts running again?

The big wildcard for PAT now will be what the silver price does over the next few months.

The ideal time you want to be poking holes into a giant exploration target like PAT’s is when the underlying commodity (in this case silver) is running.

A silver price that's running will usually mean silver stocks run alongside it.

Especially ones that are active and can capture some market attention (usually the ones putting out strong drill results into big silver up days).

Like we saw a few months back - here is a chart of what happen to our Investments during that Dec 2025 - Jan 2026 window when silver was running:

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

We are bullish silver and think the price is currently consolidating after a face melting run in late 2025.

Silver was the best performing commodity of 2025.

From its March 2025 lows of US$29/oz to a peak of US$121/oz just ten months later in January 2026:

But like most price run ups, silver needs to consolidate at a new higher level for a while - which it has been doing for the last ~6-7 months.

And finally it's starting to look like it MAY have bottomed... (we could be wrong though, of course).

There was this recent interview from well known silver investor Eric Sprott:

Eric Sprott on Gold, Silver, & His Biggest Investing Wins and Losses

Here are a couple of quotes that caught our attention:

“I think the targets for gold, if we go up as much as we did in the last two bull runs, we have a long way to go in terms of pricing of gold and silver and perhaps it'll be more exciting for silver in my mind.”

"Gold production hardly ever goes up. In fact, silver production seems to keep going down... So I would say the impetus to own gold [and silver] is incredibly strong right now."

But if silver DOES do something silly like go to US$300 or US$500 - well it's game on for a second (hopefully much stronger) rally in silver stocks like PAT.

ESPECIALLY if PAT can lob in a few unexpected big silver hits while drilling...

OR prove that the exploration target is actually translatable into a JORC resource - that would be big for PAT which is capped at just $17.3M right now...

Even if we only get a fraction of what Sprott is predicting and silver runs to US$150 per ounce we think silver stocks could do really well from here.

But once again - all commodity prices are extremely hard to predict, and there’s no guarantee that any future silver price will eventuate.

Ultimately, silver prices and success with drilling is what will help PAT achieve our Big Bet as follows:

Our PAT Big Bet:

"PAT re-rates to a $150M plus market cap by proving up the size and scale of its Peruvian silver asset"

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 PAT Investment Memo.

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

The 10 Reasons We Invested in PAT

Below are the 10 reasons why we Invested in PAT from our Initiation note done on the 10th of April 2026.

Given some time has passed since then, here are the reasons again with updates where necessary:

1. We think silver is getting ready to run to new all time highs

Silver was the best performing commodity of 2025.

From its March 2025 lows of US$29/oz, it went to a peak of US$121/oz just ten months later in January 2026.

But like most price run ups, silver needs to consolidate at a new higher level for a while - which it has been doing for the last two months.

And after some consolidation... we think it’s going higher than its January all time highs (we could be wrong though, of course).

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

2. PAT has an existing 31.4M ounce silver equivalent resource that we think can grow

PAT’s project has a JORC 31.4M ounce silver equivalent resource.

PAT’s resource is open in all directions across a ~2.8km structural corridor.

The project also has a 40-87M ounce silver equivalent exploration target. With some drilling we think PAT can get closer to that upper end (and potentially extend way beyond that number).

Only 26 drill holes have been completed across a 2.8km structural corridor and there are IP geophysical anomalies down to ~100-400m depth that remain largely undrilled.

(and some targets to the north down to ~500m depths - completely untested)

🚨Update:

PAT’s JORC exploration target is now 559 Million ounces to 774 Million ounces silver equivalent making it “One of the largest undeveloped silver systems globally”.

3. We are backing the team from Prospect Resources here

PAT’s got the same team behind it as Prospect Resources.

PAT’s chairman, Hugh Warner, was one of the co-founders of Prospect Resources, where he oversaw the Arcadia lithium project in Zimbabwe, picking up the asset, making the discovery, then growing that into what is now the largest operating lithium mine in Africa.

(Hugh holds ~6.3% of PAT shares at last count and is one of PAT’s single biggest shareholders).

Prospect Resources ended up selling that lithium asset for US$378M in 2022 and returned ~A$444M to shareholders off the back of the sale - an incredible outcome for what started as a $6M capped explorer in 2016.

We Invested in PAT now in the early stages of its exploration as we are backing Hugh to repeat the same formula as he executed at Prospect Resources.

He has brought some of the Prospect team along with him into PAT too.

4. ~$12M market cap and a tight capital structure.

PAT trades at an enterprise value of ~$7M ($12M market cap, ~$4.9M cash and no debt).

(That cash balance is based on our $500K we just committed to at 5c, plus $2.2M cash at 31 Dec + the $2.25M T2 placement, settled in January)

PAT also has a fairly tight capital structure with only ~290M shares on issue and high ownership amongst the management team.

🚨Update:

After the most recent capital raise, PAT will have ~347M shares on issue and a market cap of ~$17M at yesterday’s close price of 5c.

5. The current resource underpins PAT’s valuation

PAT trades at an enterprise value of ~$7M.

With a 31.4M ounce silver equivalent resource, PAT’s effectively trading at an EV/silver equivalent ounce of resource at $0.22 per ounce.

For context - Andean Silver (ASX: ASL), a more advanced development stage silver-gold play in Chile, trades at ~A$2.20/oz (based on yesterday’s close price).

🚨Update:

PAT’s enterprise value is now closer to ~$14M meaning PAT’s effectively trading at an EV/silver equivalent ounce of resource at ~$0.45c per ounce.

Andean Silver currently trades at ~A$3.50 EV/silver equivalent per ounce resource.

6. PAT’s silver asset was previously owned by $38BN Teck Resources

Teck - one of the world's largest diversified miners - had the asset for 4 years, validated the geology and secured drill permits.

Then, before a single hole was drilled Teck walked away in 2024 as the company repositioned as a pure-play copper company.

We think that if the project was interesting enough for one of the world’s biggest miners - Teck - to spend time and cash on the asset then we think it could be a potential company maker for a small cap like PAT.

7. PAT’s project is next door to the 1.8M ounce San Gabriel gold mine, owned by $14BN capped Buenaventura

PAT’s direct neighbour, Compañía de Minas Buenaventura (NYSE: BVM), has 1.8 million ounces of Proven and Probable gold reserves at 3.71 g.t gold and 3.1 million ounces of silver.

The San Gabriel gold mine poured its first gold bar on December 23rd, 2025.

PAT’s project gets to benefit from all the infrastructure developed by Buenaventura (and the interest that would have come into this part of Peru).

8. Peru is a fertile hunting ground for silver

Peru is the third largest producer of silver in the world accounting for ~13% of global silver production.

It’s also home to some of the biggest silver mines in the world.

The area PAT operates in is active with some of the world’s biggest mining companies like $38BN Teck Resources, $101BN Barrick and $51BN Fresnillo.

9. Exploration upside in addition to silver (gold and copper)

We think there is also gold (and copper) exploration upside on PAT’s project.

As mentioned earlier, PAT’s project is ~18km away from the San Gabriel gold mine - which entered production in late 2025.

It's also ~16km away from the ~6M ounce gold, ~46M ounce silver Chucapaca deposit owned by Goldfields/Buenaventura.

PAT’s project has similar deep gold targets to the Chucapaca deposit, which to date, have only been tested by three holes that all hit gold (albeit at low grades) - 81.9m at 0.41 g/t gold and ~234m at 0.25g/t gold.

The CEO of the previous owners of the project had said in 2010 that the "multi-phase nature of the volcanic diatreme complex at Tassa as well as the presence of similar host sediments to the nearby Chucapaca gold discovery”.

So it will be interesting to see what PAT finds with some deeper drilling.

10. Two non-core projects could be sold to free up cash for the silver project

PAT also has two non-core assets that we think could provide non-dilutive funding for the company (IF sold):

• A lithium asset in Canada - PAT’s project sits along strike from ~$160M Frontier Lithium’s deposits - one of North America’s largest and highest grade lithium deposits, expected to come into production in the coming years.

As mentioned earlier, PAT’s team knows lithium well (from the Prospect exit), so we are backing them to get the most out of this asset for PAT.

• Copper in Zambia - PAT’s project sits ~4km from Sinomine Resources Group's Kitumba copper processing plant (which is scheduled to come online in late 2026).

What do we want to see PAT do next?

🔲 Drill and update the current silver resource

We want to see PAT drill its silver project in Peru and confirm the existing 31.4M ounce silver equivalent JORC resource estimate.

With the first drill campaign, we want to see the previous results confirmed with infill drilling.

Here are the milestones we are tracking for that program:

• ✅ Land Access Agreements
• 🔲 Drilling permits
• 🔲 Drilling starts
• 🔲 Drilling results

🔄 Divestments of side assets

We noticed PAT said it is looking to divest its recent copper discovery in Zambia (next door to $7.5BN Sinomine’s copper project) AND its lithium asset in Canada .

(source)

We want to see PAT land a deal that is positive for us as shareholders.

Ideally some sort of cash payments OR scrip in the entity that takes the assets.

What could go wrong?

Over the next few months the key risks for PAT will be “Exploration risk” and “Commodity price risk”.

Exploration when drilling starts because there is no guarantee anything economic is discovered AND there is always a chance PAT is unable to deliver results that prove its giant JORC exploration target.

Exploration risk

PAT’s silver project has a resource based on ~26 historical drill cores and is 100% in the inferred category. There is no guarantee that PAT's upcoming drill programs will confirm the presence of additional mineralisation, upgrade the resource classification, or deliver the kind of results needed to justify a development pathway. Early-stage exploration is inherently risky and many projects fail to deliver economic mineralisation.

Source: “What could go wrong” - PAT Investment Memo 13 April 2026

And of course Commodity price risk because PAT’s share price will naturally move with the silver price.

Commodity price risk

PAT, as a silver exploration company is exposed to movements in the silver price. Silver prices are currently near all-time highs - should silver prices fall, this could hurt the PAT share price significantly. A silver price correction from current levels is a real and meaningful risk.

Source: “What could go wrong” - PAT Investment Memo 13 April 2026

Other risks

Like any early-stage exploration company, PAT carries significant risk, here we aim to identify a few more risks.

While PAT holds a massive exploration target of up to 774 million ounces of silver equivalent, exploration targets are purely conceptual in nature and there is no guarantee that upcoming drilling will convert this into an economic JORC-compliant resource.

Relying on multi-source historical datasets spanning over 20 years also carries the risk that past findings may not translate cleanly to modern drill success.

Operating in Peru exposes the company to country and political risks, where unexpected regulatory changes, environmental opposition, or local community delays could halt exploration schedules.

Drilling campaigns are inherently capital-intensive, meaning PAT will likely need to raise additional capital in the future, presenting ongoing shareholder dilution risk.

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

Our PAT Investment Memo

You can read our PAT Investment Memo in the link below.

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

Our PAT Investment Memo covers:

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