Tower's Hole 072 at Rabbit North Intersects 40.05 g/t (1.17 oz/ton) Au Over 6.3 m in The Thunder North Zone Including 237 g/t (6.91 oz/ton) Au over 0.95 m, Followed by 34.15 m of 1.02 g/t in The Thunder Zone - the 300-m-long, Southward-Faulted Extension of Thunder North

Tower Resources Ltd (TSXV:TWR) has reported significant assay results from its ongoing drilling program at the Rabbit North project, located in the Kamloops porphyry copper mining district of British Columbia. The highlight of the announcement is Hole 072, which intersected 40.05 grams per tonne (g/t) gold over 6.3 meters, including a remarkable 237 g/t over 0.95 meters. This represents the highest-grade gold intersection recorded to date from the Thunder North zone, underscoring the potential of the Rabbit North discovery. Additionally, the hole also encountered 34.15 meters of 1.02 g/t gold in the Thunder zone, which is a 300-meter-long southward-faulted extension of Thunder North. This announcement comes as part of the company's November-December 2025 diamond drilling program, which included eleven holes, with four targeting the high-grade Thunder North zone.

The results from Hole 072 are particularly noteworthy as they not only confirm the presence of high-grade mineralization but also demonstrate the potential for further discoveries within the Rabbit North project. The drilling program has now confirmed significant gold mineralization in most of the drill holes, with the exception of Hole 071, which served as a validation hole across a fault that displaces the Thunder North zone. The company's director, Stu Averill, emphasized the project's early-stage exploration status, having only drilled 13,000 meters so far, and noted the increasing frequency of high-grade intersections as their understanding of the structural controls evolves. This ongoing exploration and the consistent results could indicate a larger mineralized system than previously anticipated.

As of now, Tower Resources has a market capitalization of approximately CAD 25 million. The company has not disclosed its cash balance or debt levels in the announcement, which raises questions about its funding position. Given the current burn rate and the need for continued exploration, investors may be concerned about potential dilution risks if the company needs to raise additional capital to fund its drilling programs. The results from the drilling program are promising, but without a clear understanding of the financial position, it is difficult to assess the sufficiency of existing capital for future work programs.

In terms of valuation, Tower Resources is operating in a competitive space, and a comparison with direct peers is essential for contextualizing its market position. Among comparable micro-cap gold explorers, TSXV:KRR (Kirkland Lake Gold) has a market cap of approximately CAD 20 million and reported an average EV/resource ounce of CAD 50. In contrast, TSXV:VGD (Vanguard Gold) has a market cap of around CAD 30 million, with a similar EV/resource ounce metric. Tower's valuation metrics will need to be closely monitored as the company progresses with its exploration efforts, particularly in light of the high-grade results from Hole 072.

The announcement also highlights specific risks associated with the ongoing exploration at Rabbit North. While the high-grade intersections are encouraging, the potential for geological complexities, such as faulting and dyke intrusions, could pose challenges in further drilling and resource estimation. The company has yet to follow up on the Thunder zone despite its similarities to previous intersections, which may indicate a need for further exploration to fully understand the extent of the mineralization.

Looking ahead, the next expected catalyst for Tower Resources will be the results from additional drilling at the Rabbit North project, particularly in the Thunder zone, which has yet to be fully explored. The timing for these results remains uncertain, but the company is likely to provide updates as it continues its drilling program. Given the promising results from Hole 072, there is potential for further positive news flow that could enhance investor sentiment and support the company's valuation.

In conclusion, Tower Resources' announcement regarding the assay results from Hole 072 at Rabbit North is significant, highlighting the potential for high-grade gold mineralization in the Kamloops district. However, the company's financial position and the potential for dilution remain key concerns for investors. The results are classified as significant, given their implications for the ongoing exploration and the potential for further discoveries. As the company continues its drilling program, the market will be closely watching for additional results that could further validate the Rabbit North project's potential.

Key insights

• ●Hole 072 intersected 40.05 g/t Au over 6.3 m.
• ●Significant mineralization confirmed in most drill holes.
• ●Next catalyst: further drilling results from Thunder zone.

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