HALIFAX, NS / ACCESS Newswire / May 26, 2026 / Axo Metals Corp. (TSXV:AXO) ("Axo", "Axo Metals" or the "Company") is pleased to announce the first batch of assayed drillholes from its recently acquired, San Antonio project in Sonora, Mexico. Axo is also providing an exploration update at the project's El Tigre target, with drilling underway imminently. The company has also announced that it has engaged P&E Mining Consultants, who are preparing a Preliminary Economic Assessment for San Antonio.

"Following our recent acquisition of San Antonio and the subsequent financing, we were excited to get underway with our drilling and exploration plans for the project" says Jonathan Egilo, President & CEO. "Initial results at the Sapuchi deposit have proven very encouraging, highlighted by strong grades being seen directly from surface. We are also excited to be testing prospective areas beyond the resource boundary, following up on excellent work by our field team that has been generating targets."

San Antonio Drill Results

The company is reporting the results of the first 21 holes, or approximately 3,000 metres of drilling, with all drilling to date concentrated in and around the Sapuchi deposit. Axo is considering Sapuchi as a potential starter-pit due to its high-grade oxide resources, and favourable topography. Oxide resources at Sapuchi within the 2021 resource block model stood at 53koz Au grading 0.85 g/t Au in the Indicated category, and 75koz Au grading 0.74 g/t Au in the Inferred category. Total resources at San Antonio stand at 576koz Au grading 1.20 g/t Au and in the Indicated category, with 544koz Au grading 1.02 g/t Au in the Inferred category across all deposit types (oxide, transition and sulphide).

The goal of the Sapuchi drill program, where the Company plans to complete 25,000 metres, is to upgrade resource confidence, infill gaps within the block model designated as waste, and test the periphery of the deposit.

Highlights from the results include:

• Hole SOSAP-26-018 which assayed 1.33g/t Au over 26.8 metres from 82 metres down the hole.

FIGURE 1: NEW DRILLHOLE LOCATIONS ACROSS THE SAPUCHI DEPOSIT

Figure 2 below is a cross section through the Sapuchi deposit. The section highlights examples of early success of the drill campaign thus far, as Axo is testing under-drilled sections of the deposit to see if blocks previously modelled as waste within the pit can be converted into ore. Hole SOSAP-026-15 intercepted 18.4 metres of 0.61g/t Au from only 36 metres down the hole, while SOSAP-026-013 intercepted 27.9 metres of 0.43g/t Au from 31 metres down the hole (with a higher-grade interval of 7.1 metres at 0.82g/t Au).

Both intervals were above cut-off grade and are in-pit, within what was previously modelled as waste in the 2021 MRE block model. The SOSAP-026-013 intercept was approximately 100 metes north from the nearest modeled ore domain within the 2021 Resource.

FIGURE 2: CROSS SECTION OF HOLES 26-015 AND 26-013 INTERCEPTING MINERALIZATION THROUGH WASTE WITHIN THE 2021 MRE RESOUCE PIT

El Tigre Zone Channel Sampling and Drill Program Startup

In the time since Axo acquired the San Antonio project, the company has undergone a target generation campaign at the El Tigre target, a footprint measuring approximately 1,500 metres long by 500 metres wide, which has seen numerous historical high-grade grab samples. Work has included a detailed structural mapping campaign, followed by channel sampling. The company's exploration field work has been able to benefit from an on-site laboratory which was originally installed when San Antonio was in production. This has allowed for target generation work including grab samples and channel samples to be processed on site, while any drilling will continue to be assayed by a third-party lab.

Recent prospecting channel results have been encouraging, including results from three separate channels that have returned 1.11g/t Au over 68.6 metres (including 4.00g/t Au over 12.2 metres), 0.82g/t Au over 46.8 metres (including 5.76g/t Au over 4.9 metres), and 6.24g/t Au over 5.4 metres. Drilling at the El Tigre zone has been slated to start up imminently. The resource expansion drill program at San Antonio, has been budgeted for 5,000 metres, and the company is well financed to expand the scale of this program pending success.

The Figure 3 below shows the location of the El Tigre target west of Golfo de Oro resource, overlain with historical chip samples and Axo's recent channel results.

FIGURE 3: LOCATION OF CHANNEL RESULTS AND EL TIGRE ZONE

Initiated Preliminary Economic Assessment

Axo has engaged P&E Mining Consultants to complete a Preliminary Economic Assessment (PEA) for the San Antonio project. The study is already underway. P&E will also be completing a new resource estimate for the PEA, relying on the same drilling databased used in the Micon 2021 pit-constrained resource estimate, while updating the metals price used. The 2021 resource used a US$1,750/oz gold price assumption. The PEA is expected to be complete by late-Q3 2026.

Table 1: San Antonio Assay Results