Contango ORE, Inc. Material Event: Merger Update

1. What happened?

Contango ORE, Inc. (CORE) officially merged with Dolly Varden Silver Corporation on March 26, 2026. The combined company is now named Contango Silver & Gold Inc. and continues to trade on the NYSE American under the ticker CTGO. This was an all-stock deal, resulting in a 50/50 ownership split between the original shareholders of both companies. The merger combines CORE’s Manh Choh gold project in Alaska with Dolly Varden’s silver assets in British Columbia.

2. Why does this matter for your investment?

This merger fundamentally changes the company's profile. Here is what you need to know:

• Diversification vs. Focus: The company is moving away from being a single-mine operator. While this spreads risk across two countries, it also introduces "integration drag"—the reality that merging two corporate cultures and operational teams often costs more and takes longer than expected.
• Growth Strategy: Expect a shift toward more aggressive acquisitions. The new leadership is signaling a "buy and build" strategy rather than focusing solely on the Manh Choh mine.
• Capital Complexity: The company issued "Exchangeable Shares" to Canadian residents for tax purposes. These function similarly to common stock but carry different voting and dividend rights. Be aware that this more complex capital structure could lead to future share dilution.

3. Who is leading the "New" Company?

The leadership team is a blend of both organizations:

• Rick Van Nieuwenhuyse: Remains President and CEO, focusing on the Manh Choh project.
• Clynton Nauman: Joins as Chairman of the Board, bringing significant mine development experience.
• Board Expansion: The board now includes Shawn Khunkhun (former Dolly Varden CEO), Forrester (Tim) Clark, and Darren Devine. Their addition is intended to help the company navigate Canadian mining regulations and markets.

4. What should you watch for next?

The company is currently in a 12-month integration phase. Keep an eye on these three areas to gauge the success of the merger:

• All-In Sustaining Costs (AISC): Watch the upcoming quarterly reports. The AISC will now reflect costs from both Alaska and British Columbia; if these costs spike, it may indicate that the integration is proving more expensive than anticipated.
• Technical Reports: A new technical report for the combined assets is expected in Q3 2026. This will be the first real test of whether the Kitsault Valley project adds the value the company claims.
• Management Incentives: Look for regulatory filings regarding executive pay plans. Seeing how management is rewarded—whether for production growth or share price performance—will tell you a lot about their priorities for the next few years.

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Investor Takeaway: This merger transforms CTGO from a focused gold developer into a diversified, but more complex, precious metals producer. If you prefer simple, single-asset stories, this may no longer fit your portfolio. However, if you are looking for a company with a broader geographic footprint and an aggressive acquisition strategy, this new structure provides that—provided they can successfully manage the integration of their Canadian and Alaskan operations.