Brian Wilkes

I thought Bunker Hill was a good one to do now because they have a few potential catalysts and a very good entry price at the time, down over 70% from it's high. This is obviously not financial advice, but the catalysts I see is they are just starting production, which in and of itself, should change the profile of this company, and get more eyes on it, but the major piece is the acquisition of Silver 47 Exploration. So they have gone quickly from a small development company to a major player in the Silver mining industry. And their current market cap is only US $144 million. Bunker Hill Mining — Investment Analysis TSX: BNKR | OTCQB: BHLL Primary jurisdiction: Idaho, USA Core commodity exposure: Silver, lead, zinc New portfolio: Bunker Hill Mine + Silver47's Red Mountain, Hughes and Mogollon projects 1. The Bunker Hill story has changed Originally, Bunker Hill was essentially a single-asset restart story: Rehabilitate the historic Bunker Hill Mine → restart production → ramp to 1,800 tpd → potentially expand to 2,500 tpd. That was already attractive because the company was moving from development toward actual production. But the Silver47 transaction changes the structure of the company. The combined company is intended to have: the producing/restarting Bunker Hill Mine in Idaho; Red Mountain in Alaska; Hughes in Nevada; Mogollon in New Mexico; approximately 80 Moz AgEq M&I resources; approximately 308 Moz AgEq inferred resources; and three active exploration programs. In other words: Bunker Hill is evolving from a mine restart into a U.S. silver platform. That is a big change in how this mining company will be viewed. 2. The Bunker Hill Mine itself This remains the foundation of the company. The historic mine produced approximately 165 million ounces of silver and roughly 4.5–5 million tonnes of base metals before closing in 1981. The modern company has rebuilt the operation rather than simply trying to reopen the old plant. It now has a new: 1,800-tpd processing facility crushing/grinding circuit differential flotation lead concentrate circuit zinc concentrate circuit tailings filtration modern underground rehabilitation The processing plant is only about 3.5 miles from the underground mine portal. Concentrates are being shipped to Teck's Trail smelter in British Columbia. Bunker Hill produced its first concentrate on June 29, 2026 and shipped its first concentrate to Trail on July 31. Commercial production is targeted by the end of 2026. That's a major change in risk profile. The company has gone from: developer → commissioning → first concentrate → ramp-up → commercial production. 3. Production growth could be substantial The initial plant is designed for: 1,800 tonnes per day But Bunker Hill is already looking toward: 2,500 tonnes per day The company's current presentation describes the 2,500-tpd "Bunker Hill 2.0" expansion as using the existing mineral inventory and targeting approximately a 13-year mine life at that scale. The Silver47 transaction presentation lays out a potential production trajectory of approximately 980k AgEq oz in 2026, 2.5M AgEq oz in 2027 and 5M+ AgEq oz per year thereafter. The company itself notes that the 2026/2027 production figures are based on analyst consensus projections, so I would not treat them as guaranteed company guidance. But the important thing is the direction of travel. This isn't a 500,000-ounce-per-year mine with nowhere to go. There is a plausible pathway toward becoming a multi-million-ounce silver-equivalent producer. 4. The Cate-8 discovery makes the existing mine more interesting Bunker Hill has been drilling the Cate-8 vein, which has produced some spectacular results. The August 2026 results included: 12.5 ft at 2.94 oz/t Ag + 3.2% Pb = 3.75 oz/t AgEq including 7 ft at 4.75 oz/t Ag + 4.4% Pb = 5.82 oz/t AgEq Another interval included 15.7 oz/t silver + 33.7% lead, equivalent to approximately 23.9 oz/t AgEq. More importantly, the company says Cate-8 has now been traced for more than: 1,100 feet along strike and 1,250 feet downdip. The objective is to establish an initial resource for Cate-8 by the end of 2026. That's potentially significant because this isn't exploration 50 miles away from the processing plant. It's inside the existing mine environment. If Cate-8 proves economic and can be incorporated into the mine plan, it could: increase grades; increase silver production; improve mine economics; extend mine life; accelerate the 2,500-tpd expansion case. That's excellent exploration leverage. 5. Then Silver47 enters the picture This is the part that really changes things for Bunker Hill. Bunker Hill has agreed to acquire 100% of Silver47 Exploration. The transaction is an all-share arrangement. Silver47 shareholders will receive 0.1724 Bunker Hill shares for each Silver47 share, and the resulting company is expected to have approximately 43% ownership by former Silver47 shareholders and 57% by existing Bunker Hill shareholders. The deal remains subject to shareholder, court and regulatory approvals and is expected to close following the November 2026 meetings if conditions are satisfied. So there is meaningful dilution. But what is Bunker Hill getting? Three additional U.S. silver projects. That’s big. 6. Red Mountain — Alaska Red Mountain is a high-grade silver-lead-zinc project in Alaska. The important point isn't merely that it has ounces. It gives the combined company another large-scale exploration/development opportunity in the United States, complementing the producing Idaho asset. This starts creating a portfolio effect: Idaho → production Alaska → development/exploration Nevada → precious-metals exploration New Mexico → large exploration system That is much more valuable strategically than simply owning another early-stage property. 7. Hughes — Nevada Hughes gives the company exposure to Nevada. That matters because Nevada remains one of the world's premier mining jurisdictions, and having a project there potentially broadens the company's future precious-metals portfolio beyond the Idaho Silver Valley. It also provides a potential pathway to gold/silver diversification rather than being exclusively a silver-lead-zinc company. I would not give Hughes enormous valuation credit today — it remains an exploration/development asset — but it contributes meaningful optionality. 8. Mogollon — New Mexico This may ultimately become one of the most exciting exploration pieces. Mogollon is a large historic vein system with approximately 77 km of cumulative vein strike, but only a small portion has been systematically explored/drilled. Recent drilling has already returned high-grade results, including 31 metres at 448 g/t AgEq including approximately 129 g/t silver and 3.88 g/t gold. The significance isn't just the individual intercept. It's the enormous amount of underexplored strike length behind it. That creates the possibility of a major resource expansion if drilling succeeds. Though I would classify that as optionality rather than current NAV. 9. The combined resource is now substantial The transaction gives the combined company approximately 80 Moz AgEq M&I Plus 308 Moz AgEq inferred for roughly 388 Moz AgEq total across the four-project portfolio. It does not, however, mean Bunker Hill suddenly has 388 million ounces of economically mineable silver. AgEq incorporates silver, lead, zinc and gold and a large portion is inferred. So I wouldn't use 388 Moz as a valuation denominator. But it does demonstrate something important: The company now has enough geological inventory to potentially build a much larger U.S. precious-metals business. 10. Why I like the U.S. jurisdiction particularly well This is one of Bunker Hill's biggest advantages in our scenario. The entire combined portfolio is U.S.-based. That's unusual among the smaller silver companies I’ve been looking at And Bunker Hill already has: Existing mining permits; Local infrastructure; Highway access; Grid power; Established mining workforce; An existing water-treatment arrangement; An operating mine; An established smelter relationship. The company also says it has relationships with: U.S. EPA EXIM Bank Department of Energy Office of Strategic Capital and expects to leverage those relationships for financing, permitting and development. I wouldn't count government financing as guaranteed. But in a world increasingly focused on domestic critical-minerals supply, Bunker Hill is positioned unusually well. 11. The financing situation is the biggest weakness Bunker Hill is not sitting on a massive cash pile like some of our other companies. And it is currently in the expensive transition from commissioning to commercial production. As of August 31, it had drawn another US$2M from its Teck standby facility and announced plans to draw the remaining US$2M plus up to US$7M from a concentrate prepayment facility during September and October to support working capital and the ramp-up. That tells us the mine is working, but the company still has to finance the ramp. That's not necessarily alarming — early-stage mine ramp-ups commonly require working capital — but it doesn’t have as strong as financial position as some others I’ve looked at. 12. Silver47 also creates dilution This is the biggest downside of the acquisition. Existing Bunker Hill shareholders won't own 100% of the enlarged company. Former Silver47 shareholders will own approximately 43% on the basic transaction structure. That's potentially an excellent strategic transaction, but it means we can't simply take Bunker Hill value + Silver47 value and assign all of that value to current BNKR shareholders. The ownership split has to be accounted for. 13. But the transaction may solve another problem There's a strategic benefit to the dilution. Bunker Hill's pro forma basic market capitalization is expected to be around US$326 million after the combination. That potentially puts the company into a much more interesting size range for institutional investors. The company is also pursuing an NYSE American listing, although there is no guarantee it will obtain it. That's important for my personal investment thesis because I love the potential micro-cap → institutional rerating pathway. Bunker Hill has a plausible version of it: Small developer to: → U.S. producer → multi-million-ounce producer → large U.S. resource portfolio → potential NYSE American listing → institutional ownership That is a powerful rerating mechanism if execution goes well. 14. How I rank the risks 🟢 Low relative risk Jurisdiction: Extremely strong. Existing infrastructure: Excellent. Permitting: Much better than starting a new mine from scratch. Metallurgical/offtake: Established processing and Teck relationship. 🟡 Medium risk Mine ramp-up: The plant is operating, but commercial production hasn't yet been fully achieved. Expansion: 2,500 tpd still requires execution and capital. Cate-8: Very promising, but not yet a resource. 🔴 High risk Financing Silver47 integration-The transaction needs to close and then the assets need capital & management attention. Exploration Much of the 388 Moz AgEq is not currently economic reserves. Dilution Existing shareholders give up substantial ownership in the merger. 15. Valuation framework I would not value Bunker Hill today by simply multiplying its 388 Moz AgEq resource by a dollar-per-ounce figure. That would be far too aggressive. Instead, I'd break the company into four buckets: A. Operating Bunker Hill Mine Highest valuation confidence Already producing concentrate. B. Bunker Hill 2.0 Medium-high confidence Existing mineral inventory and infrastructure provide a logical expansion pathway. C. Cate-8 Medium confidence Very exciting grades and growing strike/dip extent, but resource still being defined. D. Silver47 projects Low-to-medium confidence Potentially enormous optionality, but most of the value still needs to be demonstrated through exploration, studies and permitting. That framework prevents us from paying for exploration ounces as if they were reserves. 16. What could be the catalysts for Bunker Hill? There are five major catalysts I'd watch. 1. Commercial production by year-end 2026 This removes one of the biggest remaining risks. 2. 2027 guidance This will tell us whether the 2.5M AgEq production trajectory is realistic. 3. Cate-8 resource A substantial resource here could materially improve the existing mine's economics. 4. Silver47 transaction closes That converts the conceptual portfolio into an actual combined company. 5. Mogollon/Red Mountain drilling If either produces a major resource expansion, the company could transition from small producer to U.S. silver growth company. 17. What could be the potential issues? The opposite factors: Prolonged ramp-up problems; Poor recoveries; Unexpected operating costs; Inability to finance the 2,500-tpd expansion; Excessive future dilution; Silver47 integration problems; Disappointing drilling; Cate-8 failing to become economically mineable; Production remaining much closer to 1M AgEq than 2.5–5M. Conclusion I think the Silver47 acquisition makes Bunker Hill materially more interesting than it was previously. The old thesis was: High-grade Idaho silver mine coming back into production. The new thesis is: A U.S.-based silver producer entering commercial production, with a pathway from ~1M to 2.5M and potentially 5M+ AgEq ounces, a growing high-grade resource at Cate-8, and three additional U.S. silver/precious-metals exploration platforms. But if Bunker Hill reaches commercial production, Cate-8 becomes a meaningful resource, the Silver47 transaction closes, and 2027 production approaches the 2.5M AgEq target, the value of this company could skyrocket. The drawbacks are that they still have to prove the economics of the larger platform, finance the expansion, absorb the Silver47 dilution, and demonstrate that the exploration assets can actually be converted into economic resources.

Regarding Bunker Hill.....who are very very cheap right now. Were trading over $8 and now at $3 and JUST started producing June 29th so will finally have revenue AND recently acquired Silver 47 Exploration which makes them a major player in the Silver market...AND their market cap is only $143 million. Dirt cheap. Silver 47 has over $100 million market cap itself. This should rerate soon and could take off in short order with several major catalysts. Full project and investment analysis coming over the next few days.