ASX:PAT

- Patriot Resources Ltd

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:

(source)

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.

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).

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).

(Source)

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)

(source)

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.

(source)

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.

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).

Here is how PAT ranks against other peers:

(source - PAT presentation from March 2026)

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.

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).

(Source)

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.

(source)

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.

(source)

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).

This asset is fairly early stage (trenching/sampling) BUT if a few drillholes are put in and they come in, it could become an interesting M&A target for the owners of that nearby plant.