Mako Mining signs LOI for 20-year gold stream sale

Mako Mining Corp. (" Mako " or the " Company ") (NASDAQ: MAKO )(TSXV: MKO ) is pleased to announce that it has entered into a non-binding letter of intent dated and signed on September 11, 2026 (the " LOI ") with Sailfish Royalty Corp. (" Sailfish "), a non-arm's length entity, in connection with a proposed sale to Sailfish of a corporate level, long-term gold stream (the " Transaction ").

Proposed Terms of the Gold Stream The LOI provides for the proposed purchase by Sailfish from Mako of refined gold over a term of 240 months (the " Term "), as follows: until August 1, 2028 (" Part 1 "), 650 troy ounces of refined gold per month; immediately following Part 1, until February 1, 2031 (" Part 2 "), 750 troy ounces of refined gold per month; immediately following Part 2, until February 1, 2037 (" Part 3 "), 900 troy ounces of refined gold per month; and immediately following Part 3, for the remainder of the Term, 1,000 troy ounces of refined gold per month.

(the " Payable Gold ") For each ounce of refined gold delivered, Sailfish will pay to Mako a price equal to 25% of the London Bullion Market Association PM Fix price on the date of delivery. Mako may satisfy its obligations in respect of the delivery of all or a portion of the Payable Gold through the delivery of refined gold from any source (other than from Mako's Mt. Hamilton Project), including the delivery of any London Bullion Market Association gold delivery bars in the relevant quantity. 76 (based on a 5-day VWAP ending on the trading day immediately prior to signing the LOI).

The Sailfish Shares will be subject to a statutory hold period of four months and one day from the date of issuance. 00% of the issued and outstanding common shares of Sailfish. Transaction Rationale The purpose of the Transaction is to capitalize on the clear cost-of-capital differential between gold royalty companies and operating companies. Sailfish has announced that immediately following closing of the Transaction, it intends to amend its dividend policy such that, for every 18,000 common shares of Sailfish owned, shareholders will receive the cash equivalent of one ounce of gold per year, payable quarterly in arrears.

Mako is confident that, following the implementation of such amended dividend policy, Sailfish's common shares should command a premium valuation given their attractive yield and direct linkage to the gold price. Mako also believes that the Sailfish Shares can be used, directly or indirectly, as a strategic financing currency. The Sailfish Shares are expected to enhance Mako's ability to access lower-cost financing structures and pursue acquisition opportunities of a size and quality materially greater than those historically available to the Company.

In addition, lower cost financing structures are expected to enable Mako to return the majority of its US$112(1) million in cash and securities to shareholders in the form of dividends if no higher returning acquisitions are completed.