HONEY BADGER SILVER TO ACQUIRE IMPORTANT HIGH-GRADE PERMITTED(1) CANADIAN SILVER PROJECT; LAUNCHES $10 MILLION FINANCING

Honey Badger Silver Inc. has announced a transformative acquisition of Canadian Zinc Corporation, the 100% owner of the Prairie Creek Project in the Northwest Territories, for total consideration of $12 million. The deal structure includes $10 million in cash plus $2 million in Honey Badger shares and warrants, with the acquisition expected to close in Q2 2026. To fund the transaction, the company has launched a $10 million brokered private placement offering of subscription receipts at $0.16 per unit through SCP Resource Finance LP.

The Prairie Creek Project represents a significant strategic asset, hosting historical resources of 9.8 million tonnes of measured and indicated resources grading 139 g/t silver, 9.7% zinc and 8.8% lead, containing 240 million ounces of silver equivalent. Additional inferred resources of 6.4 million tonnes grade 150 g/t silver with 167 million ounces silver equivalent. The project benefits from existing underground development, mill facilities, surface infrastructure, and crucially, key regulatory approvals including Type A Water License, Land Use Permits and Environmental Assessment approvals.

Executive Chairman Chad Williams emphasized this marks the first time the project can be evaluated with silver over $100/oz, fundamentally shifting the value proposition from its historical zinc focus to silver-dominated economics. The project's advanced stage, with existing infrastructure and underground workings, materially reduces development risk compared to greenfield projects. The company has secured support from local Indigenous governments through signed Impact and Benefits Agreements with three First Nations.

This acquisition positions Honey Badger as a significant silver-focused development company, with the Prairie Creek Project offering both immediate resource scale and regional exploration potential across its 7,485 hectare land position. The strategic timing aligns with elevated silver prices and growing demand for critical minerals, as silver, zinc and lead are all designated critical minerals in North America.