Idaho Strategic Resources Reports Third Quarter 2024 Operating and Financial Performance

About this update from Idaho Strategic Resources, Inc.

Highlighted by an 86.39% Increase in Revenue and a 376.44% Increase in Net Income - IDR Continued its Strong Financial Performance Despite Increased Exploration Expense Leading to the Discovery of the Red Star Vein COEUR D'ALENE, ID / ACCESSWIRE / November 4, 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 September 30, 2024. IDR achieved an 86.39% increase in revenue and a 376.44% increase in net income compared to the second quarter of 2023. Key highlights include: Operational Performance: Q3 2024 % Change Q3 2023 Ore Tonnes Processed 10,470 0.38% 10,430 Average Flotation Feed Grade (gpt) 9.32 45.40% 6.41 Ounces Produced 2,892 45.11% 1,993 All In Sustaining Cost Per Ounce ($USD)* $1,500.86 12.53% $1,333.73 *Adjusted all in sustaining costs excluding exploration expenses were $1,109.79 for the three-month period ending September 30, 2024. Financial Performance ($USD): Q3 2024 % Change Q3 2023 Revenue $6,153,287 86.39% $3,301,221 Total Cost of Sales $3,155,931 43.76% $2,195,289 Gross Profit $2,997,356 171.03% $1,105,932 Net Income Attributable to IDR $2,004,280 376.44% $420,679 Earnings Per Share (EPS) $0.15 400.00% $0.03 Idaho Strategic's CEO and President, John Swallow stated, "Congrats to our team for another good quarter. We exceeded $6m in revenue and $2m in net income, and every employee shared financially in our ‘win as you go' philosophy. It has become increasingly apparent that our business approach, asset mix and production experience are somewhat of a rarity as we have not suffered from the "bifurcation" so many look to as an explanation instead of the possibility of having yesterday's business plan. Considerable cash (and equivalents) were added to the balance sheet from both operations and through our ATM, and with cash levels at an all-time high I feel that we maintained a disciplined approach toward cash flow, investment, and improving the balance sheet. The opportunity to focus on the balance sheet and our savings account came largely near the end of the quarter, and as we plan for more of the same from operations some debt reduction will be added in Q4. This quarter we had three drills turning, the paste backfill (new mill) building construction, tailings permitting and other work underway. And a few of us spent much of October on the road at shows and conferences (from Toronto to WA DC to Boise). At the mine our geologists are literally buried in core and we should have six total geologists on staff by mid-November to help lighten the load, grow production potential, prepare for MGB and Eastern Star drilling, advance Lemhi Pass and continue to look to the future. Needless to say, there are a lot of moving parts at IDR and the rapid growth is being handled in a logical and straightforward manner. I have long said that not everyone comes along for the ride and sometimes you get surprised by those that run with you toward the storm - and I can say with great confidence that the entire team is engaged, looking ahead and fully turned into the wind. This is what we were built for and we continue to look into asset growth for the near-term, intermediate and over the longer term. Including taking a global view toward planting trees that may not bear fruit for some time. This was the approach and ‘common thread' set of assumptions we began with 10 years ago and see no reason to change, except to leverage what we have learned and focus on the same, but more of it". Golden Chest Highlights for Q3 2024 Include: At the Golden Chest, ore mined from underground stopes totaled approximately 10,500 tonnes with all of the tonnage coming from H-Vein stopes. A total of 3,820 cubic meters of cemented rockfill ("CRF") were placed during the quarter which is a new quarterly record. The Main Access Ramp ("MAR") and associated attack ramps were advanced by approximately 154 meters during the quarter. For the quarter ended September 30, 2024, a total of 10,470 dry metric tonnes ("dmt") were processed at the Company's New Jersey mill with a flotation feed head grade of 9.32 gpt gold and gold recovery of 93.1%. An exploration program consisting of both underground and surface core drilling was continued during the third quarter. Underground drilling was focused on exploring the Klondike area and targeting the newly found Red Star zone and northerly projections of the H-vein. Surface drilling was completed in Butte Gulch and this rig was moved to the northern area of the Golden Chest. A third drill rig was moved to Wesp Gulch to drill down-dip on the Idaho fault and associated veining during the quarter. Rare Earth Highlights for Q3 2024 Include: Attended the Adamas Rare Earth Mines, Magnets and Motors Conference in Toronto, Canada during the quarter. Subsequent to quarter end, Idaho Strategic representatives attended the International Rare Earth Elements Conference in Washington DC. 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 Nine-Month Periods Ended September 30, 2024 and 2023     September 30, 2024     September 30, 2023       Three Months     Nine Months     Three Months     Nine Months                             Revenue:                         Sales of products   $ 6,153,287     $ 18,177,607     $ 3,301,221     $ 9,879,332   Total revenue     6,153,287       18,177,607       3,301,221       9,879,332                                     Costs of Sales:                                 Cost of sales and other direct production costs     2,670,417       7,825,357       1,831,847       6,079,697   Depreciation and amortization     485,514       1,443,232       363,442       1,034,521   Total costs of sales     3,155,931       9,268,589       2,195,289       7,114,218   Gross profit     2,997,356       8,909,018       1,105,932       2,765,114                                     Other operating expenses:                                 Exploration     1,185,460       2,073,364       435,439       916,250   Management     92,967       292,380       58,998       183,477   Professional services     81,663       320,889       80,856       444,899   General and administrative     203,732       543,851       117,178       504,241   (Gain) loss on disposal of equipment     (6,000 )     1,431       -       (224 ) Total other operating expenses     1,557,822       3,231,915       692,471       2,048,643   Operating income     1,439,534       5,677,103       413,461       716,471                                     Other (income) expense:                                 Equity (income) loss on investment in Buckskin Gold and Silver, Inc     (1,301 )     (1,579 )     (1,608 )     (2,965 ) Timber revenue net of costs     -       (19,406 )     -       (20,724 ) Loss on investment in equity securities     -       453       1,543       4,423   Interest income     (167,801 )     (247,904 )     (23,560 )     (61,253 ) Interest expense     37,128       83,295       33,103       52,999   Government grant income     (418,000 )     (418,000 )     -       -   Total other (income) expense     (549,974 )     (603,141 )     9,478       (27,520 )                                   Net income     1,989,508       6,280,244       403,983       743,991   Net loss attributable to non-controlling interest     (14,772 )     (53,018 )     (16,696 )     (65,080 ) Net income attributable to Idaho Strategic Resources, Inc.   $ 2,004,280     $ 6,333,262     $ 420,679     $ 809,071                                     Net income per common share-basic   $ 0.15     $ 0.49     $ 0.03     $ 0.07                                     Weighted average common share outstanding-basic     13,111,073       12,821,279       12,256,523       12,238,172                                     Net income per common share-diluted   $ 0.15     $ 0.49     $ 0.03     $ 0.07                                     Weighted average common shares outstanding- diluted     13,259,638       13,012,689       12,263,318       12,243,055   Idaho Strategic Resources, Inc. Condensed Consolidated Balance Sheets (Unaudited)     September 30, 2024     December 31, 2023   ASSETS             Current assets:             Cash and cash equivalents   $ 8,392,556     $ 2,286,999   Investments in debt securities     3,198,452       -   Gold sales receivable     1,054,051       1,038,867   Government grant receivable     418,000       -   Inventories     971,507       876,681   Joint venture receivable     855       2,080   Investment in equity securities     -       5,649   Other current assets     405,267       236,837   Total current assets     14,440,688       4,447,113                     Property, plant and equipment, net of accumulated depreciation     11,565,402       10,233,640   Mineral properties, net of accumulated amortization     10,013,290       7,898,878   Investment in Buckskin Gold and Silver, Inc     340,348       338,769   Investment in joint venture     435,000       435,000   Investments in debt securities, non-current     2,940,780       -   Reclamation bond     249,110       251,310   Deposits     842,743       285,079   Total assets   $ 40,827,361     $ 23,889,789                     LIABILITIES AND STOCKHOLDERS' EQUITY                 Current liabilities:                 Accounts payable and accrued expenses   $ 1,366,345     $ 484,221   Accrued payroll and related payroll expenses     445,848       266,670   Notes payable, current portion     802,312       978,246   Total current liabilities     2,614,505       1,729,137                     Asset retirement obligations     300,602       286,648   Notes payable, long term     2,117,715       1,338,406   Total long-term liabilities     2,418,317       1,625,054                     Total liabilities     5,032,822       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; September 30, 2024-13,462,705 and December 31, 2023-12,397,615 shares issued and outstanding     43,929,336       34,963,739   Accumulated deficit     (10,877,376 )     (17,210,638 ) Total Idaho Strategic Resources, Inc stockholders' equity     33,051,960       17,753,101   Non-controlling interest     2,742,579       2,782,497   Total stockholders' equity     35,794,539       20,535,598                     Total liabilities and stockholders' equity   $ 40,827,361     $ 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 Q4 2024 financial performance that is in-line, better, or worse than Q3 2024, the potential for the Company to initiate, continue, and/or complete additional capital investments that may or may not lead to increased production, the Company's plans to reduce debt in the Q4, the Company's plans to increase its exploration and development efforts, the potential for Idaho Strategic's operations to remain profitable in Q4 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 paste backfill system to be completed on time and on budget, the potential for the paste backfill building to serve as a future mill building, the potential for the Company to complete a drill program at Eastern Star and/or Lemhi Pass next 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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