Silver Co.'s Merger Makes Strategic Sense: Analyst
Research Report

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Disclosures for Haywood Capital Markets, Dolly Varden Silver Corp., December 8, 2025

This research report is only for informational purposes. Nothing contained in this report is, or should be, relied upon as a promise or representation as to the future performance. The opinions and information in this communication constitutes the current judgment of the authors as of the date and time of this report and are subject to change without notice. There is no representation, warranty or other assurance that any projections contained in this report will be realized. Past performance is not indicative of future results. This report is not intended to provide personal investment advice. Investors are encouraged to seek advice regarding the advisability or suitability of any investments or strategies discussed in this report. Individuals involved in the production of research materials operate independently and without influence from any other Haywood Securities Inc. departments, including Haywood Securities Inc. affiliates. This report is not and is not to be construed as: (i) an offer to sell or solicitation of an offer to buy securities; (ii) an offer to transact business in any jurisdiction; or (iii) investment advice to any party. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in our research is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. Products and services described herein are only available where they can be lawfully provided. All research reports are disseminated and available to all clients simultaneously. No part of this material or any research report may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of Haywood Securities Inc. Analyst Certification I, Marcus Giannini, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations. Important Disclosures Of the companies included in the report the following Important Disclosures apply:  Haywood Securities, Inc. has reviewed lead projects of Dolly Varden Silver Corp. (DV-V) and a portion of the expenses for this travel may have been reimbursed by the issuer.  Haywood Securities, Inc. or an Affiliate has managed or co-managed or participated as selling group in a public offering of securities for Dolly Varden Silver Corp. (DV-V) in the last 12 months.  Haywood Securities Inc. is engaged as a financial advisor on the subject transaction and will receive fees if the transaction successfully concludes. Haywood has also provided a positive fairness opinion in respect of the transaction and will be paid a fee for its professional opinion. Distribution of Rat

Dolly Varden Silver Corp. (DV:TSX.V; DVS:NYSEA; DVQ:FSE) agreed to merge with Contango ORE Inc. (CTGO:NYSEA), creating a North America-focused, gold and silver company with advanced exploration-stage to producing assets, reported Haywood Securities Analyst Marcus Giannini in a Dec. 8 research note. The transaction is expected to close in late February-early March 2026.

"We believe the arrangement makes sense from a strategic perspective, offering non-dilutive capital from cash flow generated from [Contango's] Manh Choh [project] to fund exploration and the eventual development of [Dolly's] Kitsault Valley," Giannini wrote. "Dolly has continued to showcase uncapped growth upside at Kitsault, and we expect further advancement of the asset to remain a key growth driver of the merged company."

73% Return Implied

Haywood Securities maintained its CA$11.25 per share (CA$11.25/share) target price on Dolly Varden Silver, trading at about CA$6.51/share at the time of Giannini's report, the analyst noted. From that share price, the return to target is 73%.

Dolly remains a Buy.

The company has 91.9 million shares outstanding. Its market cap is CA$598 million (CA$598M). Its 52-week range is CA$3.21–7.46/share.

Terms of the Arrangement

In this merger of equals, effected through a statutory plan of arrangement, Contango will acquire all of the issued and outstanding common shares of Dolly Varden Silver at 0.1652 of a Contango common stock share for each Dolly Varden share held.

The merger must be approved by the British Columbia Supreme Court, 66⅔% of the votes cast by Dolly Varden shareholders, and a majority of Contango shareholders' shares. Both companies' merger-related shareholder meetings are planned for February 2026.

Assuming the merger is approved, after it closes, existing Dolly shareholders and existing Contango shareholders will own about 50% each of the outstanding shares of the merged company, on a fully diluted, in-the-money basis. Those shareholders should benefit from greater critical mass with a combined market capitalization of about US$812M (CA$1.1 billion) and increased trading liquidity, index inclusion, research coverage, and institutional ownership.

The new entity will have more than US$100M in combined cash on hand, US$15M in debt, and cash flow from Manh Choh. Rick Van Nieuwenhuyse will be the chief executive officer, Shawn Khunkhun the president, and Mike Clark the executive vice president and chief financial officer. The plan is to list the combined company, Contango Silver & Gold Inc., under the ticker CTGO on the New York Stock Exchange American and the Toronto Stock Exchange.

"We expect the high-grade, North American-focused asset base will appeal to a wider investment audience, offering a rerating opportunity," Giannini wrote.

Combined Project Portfolio

In terms of assets, Contango brings to the merger three, including its fully permitted and producing Manh Choh in Alaska. A joint venture project, Manh Choh is co-owned by Contango (30%) and operator Kinross Gold Corp. (K:TSX; KGC:NYSE) (70%). The project is one of the highest-grade, open-pit mines in the world; its gold reserves have an estimated grade of 8 grams per ton. In the first three quarters of 2025, Manh Choh produced 173,400 ounces of gold (52,020 ounces attributable to Contango) at an all-in sustaining cost of US$1,505 per ounce. Manh Choh offers exploration upside on 675,000 acres.

Lucky Shot is another of Contango's assets, also in Alaska. This advanced exploration-stage project is fully permitted for mining. It will take an estimated two to three years to develop a roughly 400,000–500,000 gold equivalent ounce resource. The goal is to start production there prior to 2029.

The goal with Contango's third asset, Johnson Tract in Alaska, is to finish permitting in two years, complete a feasibility study followed by a mine construction decision by 2028-2029, and begin production in five years.

Dolly Varden's asset is Kitsault Valley in British Columbia's Golden Triangle. This year, the explorer acquired 85,000 hectares of prospective land. Currently, assays are pending for 56,131 meters (56,131m) of drilling. New exploration targets have been identified for 2026.

Giannini highlighted that the combined company intends to use cash flow from the Manh Choh mine to fund exploration at Manh Choh, exploration and development of Kitsault Valley, and advancement of the Lucky Shot and Johnson Tract projects.

"We expect the asset's margin generation to remain strong under the current gold price environment, providing nondilutive financing," Giannini wrote.

Catalysts in 2026

Next year, the combined company plans activity at all of its assets, any of which could catalyze its stock, reported Giannini.

At Manh Choh, gold production will continue, and a 5,000m drill program will be carried out.

At Kitsault Valley, 50,000m of drilling will be done, followed in Q1/26 by an updated mineral resource estimate.

At Lucky Shot, 18,000m of underground infill drilling are planned.

At Johnson Tract, work is to include applying for a surface infrastructure permit, making camp upgrades, and starting construction.