Idaho Strategic Resources Reports Second Quarter 2024 Operating and Financial Performance

About this update from Idaho Strategic Resources, Inc.

Highlighted by an 89.26% Increase in Revenue and a 558.30% Increase in Net Income - IDR's 6-Month Net Income in 2024 is Nearly 4x Last Year's Total Net Income COEUR D'ALENE, ID / ACCESSWIRE / July 30, 2024 / Idaho Strategic Resources, Inc. (NYSE American:IDR) ("IDR", "Idaho Strategic" or the "Company") today announced its consolidated operating and financial results for the second quarter ending June 30, 2024. IDR achieved an 89.26% increase in revenue and a 558.30% increase in net income compared to the second quarter of 2023. Key highlights include: Operational Performance:     Q2 2024     % Change       Q2 2023   Ore Tonnes Processed     9,260       -20.91% %     11,708   Average Flotation Feed Grade (gpt)     10.29       40.77 %     7.31   Ounces Produced     2,903       34.99 %     2,152   All-In Sustaining Cost Per Ounce ($USD)     $ 1,319.40       17.66 %     $ 1,121.39   Financial Performance ($USD):     Q2 2024     % Change       Q2 2023   Revenue     $ 6,125,382       89.26 %     $ 3,236,515   Total Cost of Sales     $ 3,051,957       24.93 %     $ 2,442,932   Gross Profit     $ 3,073,425       287.28 %     $ 793,583   Net Income Attributable to IDR     $ 2,157,873       558.30 %     $ 327,793   Earnings Per Share (EPS)     $ 0.17       466.67 %     $ 0.03   Idaho Strategic's CEO and President, John Swallow stated, "Our folks did a great job during the second quarter. We have a lot going on (in addition to daily activities) - underground and surface drilling at the Golden Chest, pad and road construction for the paste backfill plant, power upgrade underway, paste plant structure and equipment ordered, upcoming drill program at Eastern Star in September, added two geologists and seasonal help to our staff, and possibly one or two other items on deck. Not to mention that the macro picture seems to be evolving more and more toward our business plan. In alignment with our discretionary ‘win as we go' approach to compensation, each employee, officer, and director earned another quarterly ‘paycheck bonus' on top of the normal pay structure." Golden Chest Highlights for Q2 2024 Include: At the Golden Chest, ore mined from underground stopes totaled approximately 11,500 tonnes with all of the tonnage coming from H-Vein stopes. A significant stockpile of ore was built up at the mill by the end of the quarter. A total of 3,230 cubic meters of cemented rockfill ("CRF") were placed during the quarter, which is a new quarterly record. The Main Access Ramp ("MAR") and associated drifts and raises were advanced by about 100 meters during the quarter. For the quarter ended June 30, 2024, a total of 9,260 dry metric tonnes ("dmt") were processed at the Company's New Jersey mill with a flotation feed head grade of 10.29 gpt gold and gold recovery of 93.6%. An exploration program consisting of both underground and surface core drilling was started in the second quarter. Underground drilling was focused on exploring the Klondike area and the projected northerly strike of the H-vein. Surface drilling was started in Butte Gulch with plans to move to the northern area of the Golden Chest in the third quarter. Rare Earth Highlights for Q2 2024 Include: Continued discussions with various laboratories, universities, and partners to advance our understanding of Idaho's rare earth mineralogy and broader mineral endowment. Mr. Swallow concluded, "I am not sure where I saw or heard the phrase that bees don't waste their time explaining to flies that honey is better than sh*t, but we now receive considerably less unsolicited ‘advice' from those that hadn't built a producer 10 years ago, and still haven't as of today. As I reflected on the discussion around this record quarter, I found myself concurring with those that describe the feeling of the early days as when you have a lot of music to make yet haven't any instruments and only sounds in your head. Compared to now (as a result of our approach) having the luxury to produce the albums you want to make and the song selection is yours. And I am sure Rob and Grant feel the same way; although Grant with a few more expletives and a heck of a lot less external reflection and Rob with a wistful story of sleeping out in front of the core shack, not making any money and still as enthusiastic as ever. Production and minding costs are always within our daily focus… And when you control the part you can control, sometimes the part you cannot control becomes part of the reward." Notes accompanying the financial statements below can be found in the Company's quarterly report filed this morning with the SEC on EDGAR. Qualified person IDR's Vice President, Grant A. Brackebusch, P.E. is a qualified person as such term is defined under S-K 1300 and has reviewed and approved the technical information and data included in this press release. About Idaho Strategic Resources, Inc. Idaho Strategic Resources (IDR) is an Idaho-based gold producer which also owns the largest rare earth elements land package in the United States. The Company's business plan was established in anticipation of today's volatile geopolitical and macroeconomic environment. IDR finds itself in a unique position as the only publicly traded company with growing gold production and significant blue-sky potential for rare earth elements exploration and development in one Company. For more information on Idaho Strategic Resources, visit https://idahostrategic.com/presentation/ , go to www.idahostrategic.com or call: Travis Swallow, Investor Relations & Corporate Development Email: [email protected] Phone: (208) 625-9001 Idaho Strategic Resources, Inc. Condensed Consolidated Statements of Operations (Unaudited) For the Three and Six-Month Periods Ended June 30, 2024 and 2023     June 30, 2024     June 30, 2023       Three Months     Six Months     Three Months     Six Months                             Revenue:                         Sales of products   $ 6,125,382     $ 12,024,320     $ 3,236,515     $ 6,578,111   Total revenue     6,125,382       12,024,320       3,236,515       6,578,111                                     Costs of Sales:                                 Cost of sales and other direct production costs     2,596,027       5,154,940       2,099,890       4,247,850   Depreciation and amortization     455,930       957,718       343,042       671,079   Total costs of sales     3,051,957       6,112,658       2,442,932       4,918,929   Gross profit     3,073,425       5,911,662       793,583       1,659,182                                     Other operating expenses:                                 Exploration     620,056       887,904       207,369       480,811   Management     90,313       199,413       55,568       124,479   Professional services     84,982       239,226       123,238       364,043   General and administrative     179,456       340,119       123,765       387,063   (Gain) loss on disposal of equipment     3,022       7,431       (6,344 )     (224 ) Total other operating expenses     977,829       1,674,093       503,596       1,356,172   Operating income     2,095,596       4,237,569       289,987       303,010                                     Other (income) expense: Equity (income) loss on investment in Buckskin Gold and Silver, Inc     1,589       (278 )     (1,007 )     (1,357 ) Timber revenue net of costs     (6,049 )     (19,406 )     -       (20,724 ) Loss on investment in equity securities     -       453       2,880       2,880   Gain on short term investments     (21,862 )     (21,862 )     -       -   Interest income     (38,606 )     (58,241 )     (18,756 )     (37,693 ) Interest expense     25,602       46,167       11,048       19,896   Total other (income) expense     (39,326 )     (53,167 )     (5,835 )     (36,998 )                                   Net income     2,134,922       4,290,736       295,822       340,008   Net loss attributable to non-controlling interest     (22,951 )     (38,246 )     (31,971 )     (48,384 ) Net income attributable to Idaho Strategic Resources, Inc.   $ 2,157,873     $ 4,328,982     $ 327,793     $ 388,392                                     Net income per common share-basic   $ 0.17     $ 0.34     $ 0.03     $ 0.03                                     Weighted average common share outstanding-basic     12,836,205       12,674,789       12,256,523       12,228,844                                     Net income per common share-diluted   $ 0.17     $ 0.34     $ 0.03     $ 0.03                                     Weighted average common shares outstanding- diluted     13,043,026       12,904,998       12,259,438       12,232,638     Idaho Strategic Resources, Inc. Condensed Consolidated Balance Sheets (Unaudited)     June 30, 2024     December 31, 2023   ASSETS             Current assets:             Cash and cash equivalents   $ 1,801,257     $ 2,286,999   Short term investments     6,344,725       -   Gold sales receivable     1,516,514       1,038,867   Inventories     766,612       876,681   Joint venture receivable     1,413       2,080   Investment in equity securities     -       5,649   Other current assets     172,036       236,837   Total current assets     10,602,557       4,447,113                     Property, plant and equipment, net of accumulated depreciation     10,492,298       10,233,640   Mineral properties, net of accumulated amortization     9,459,771       7,898,878   Investment in Buckskin Gold and Silver, Inc     339,047       338,769   Investment in joint venture     435,000       435,000   Reclamation bond     256,310       251,310   Deposits     600,267       285,079   Total assets   $ 32,185,250     $ 23,889,789                     LIABILITIES AND STOCKHOLDERS' EQUITY                 Current liabilities:                 Accounts payable and accrued expenses   $ 732,832     $ 484,221   Accrued payroll and related payroll expenses     286,187       266,670   Notes payable, current portion     745,132       978,246   Total current liabilities     1,764,151       1,729,137                     Asset retirement obligations     295,874       286,648   Notes payable, long term     1,985,742       1,338,406   Total long-term liabilities     2,281,616       1,625,054                     Total liabilities     4,045,767       3,354,191                     Commitments Notes 5 and 9     -       -                     Stockholders' equity:                 Preferred stock, no par value, 1,000,000 shares authorized; no shares issued or outstanding     -       -   Common stock, no par value, 200,000,000 shares authorized; June 30, 2024-12,958,574 and December 31, 2023- 12,397,615 shares issued and outstanding     38,264,643       34,963,739   Accumulated deficit     (12,881,656 )     (17,210,638 ) Total Idaho Strategic Resources, Inc stockholders' equity     25,382,987       17,753,101   Non-controlling interest     2,756,496       2,782,497   Total stockholders' equity     28,139,483       20,535,598                     Total liabilities and stockholders' equity   $ 32,185,250     $ 23,889,789   Forward Looking Statements This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Often, but not always, forward-looking information can be identified by forward-looking words such as "intends", "potential", "believe", "plans", "expects", "may", "goal', "assume", "estimate", "anticipate", and "will" or similar words suggesting future outcomes, or other expectations, beliefs, assumptions, intentions, or statements about future events or performance. Forward-looking information includes, but are not limited to, Idaho Strategic Resources' potential to deliver Q3 2024 financial performance that is in-line, better, or worse than Q2 2024, the potential for the Company to initiate and complete additional capital investments that may or may not lead to increased production, the Company's plans to increase its exploration and development efforts, the potential for Idaho Strategic's operations to remain profitable in Q3 2024, the potential for ongoing and future drilling and exploration work to yield positive results, the potential for the Company's planned power upgrades to be completed on time and on budget, the potential for the Company to complete a drill program at Eastern Star this year, and the potential monetary and operational benefits of implementing the paste backfill system. Forward-looking information is based on the opinions and estimates of Idaho Strategic Resources as of the date such information is provided and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of IDR to be materially different from those expressed or implied by such forward-looking information. Investors should note that IDR's claim as the largest rare earth elements landholder in the U.S. is based on the Company's internal review of publicly available information regarding the rare earth landholdings of select companies within the U.S., which IDR is aware of. Investors are encouraged not to rely on IDR's claim as the largest rare earth elements landholder in the U.S. while making investment decisions. The forward-looking statement information above, and those following are applicable to both this press release, as well as the links contained within this press release. With respect to the business of Idaho Strategic Resources, these risks and uncertainties include risks relating to widespread epidemics or pandemic outbreaks; interpretations or reinterpretations of geologic information; the accuracy of historic estimates; unfavorable exploration results; inability to obtain permits required for future exploration, development or production; general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; fluctuating mineral and commodity prices; the ability to obtain necessary future financing on acceptable terms; the ability to operate the Company's projects; and risks associated with the mining industry such as economic factors (including future commodity prices, and energy prices), ground conditions, failure of plant, equipment, processes and transportation services to operate as anticipated, environmental risks, government regulation, actual results of current exploration and production activities, possible variations in ore grade or recovery rates, permitting timelines, capital and construction expenditures, reclamation activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Readers are cautioned not to place undue reliance on such information. Additional information regarding the factors that may cause actual results to differ materially from this forward‐looking information is available in Idaho Strategic Resources filings with the SEC on EDGAR. IDR does not undertake any obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

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