SPANISH MOUNTAIN GOLD LTD. Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2026 and 2025
(Unaudited - Expressed in Canadian dollars)
Notice of Disclosure of Non-auditor Review of the Condensed Interim Consolidated Financial Statements for the Three and Six Months Ended June 30, 2026 and 2025Pursuant to National Instrument 51-102 Continuous Disclosure Obligations, part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed interim consolidated financial statements of Spanish Mountain Gold Ltd. for the interim periods ended June 30, 2026 and 2025, have been prepared in accordance with the International Accounting Standard 34 Interim Financial Reporting, as issued by the International Accounting Standards Board, and are the responsibility of management.
The independent auditors, BDO Canada LLP, have not performed a review of these unaudited condensed interim consolidated financial statements.
August 31, 2026
Condensed Interim Consolidated Statements of Financial Position(Unaudited - Expressed in Canadian dollars)
Note | June 30, 2026 | December 31, 2025 | |
ASSETS Current assets Cash 15(a) | $ 29,860,073 | $ 3,837,097 | |
Accounts receivable 5 | 3,637,863 | 169,713 | |
Current portion of prepaid expenses and deposits 6 | 245,605 | 209,950 | |
Subscription receivable 13(b) | - | 180,000 | |
33,743,541 | 4,396,760 | ||
Exploration stage mineral property 7,14 | 112,998,023 | 107,877,397 | |
Property and equipment 8 | 934,203 | 933,709 | |
Prepaid expenses and deposits 6 | 523,734 | 123,734 | |
Deposits for reclamation 7 | 91,000 | 91,000 | |
Rent deposit 11 | 10,444 | 10,444 | |
Total assets | 148,300,945 | 113,433,044 | |
LIABILITIES Current liabilities Accounts payable and accrued liabilities | 9,14 | 3,029,111 | 493,008 |
Current portion of lease liability | 11 | 73,387 | 71,006 |
3,102,498 | 564,014 | ||
Flow-through premium liability | 10 | - | 162,411 |
Lease liability | 11 | 57,496 | 94,647 |
Deferred tax liability | 17 | - | 538,828 |
Net smelter royalty liability | 12 | 30,594,375 | - |
Total liabilities | 33,754,369 | 1,359,900 | |
SHAREHOLDERS' EQUITY Share capital | 13(b) | 135,079,982 | 129,613,632 |
Shares to be issued | 13(b) | 37,550 | - |
Reserves | 3,454,169 | 3,893,647 | |
Deficit | (24,025,125) | (21,434,135) | |
Total shareholders' equity | 114,546,576 | 112,073,144 | |
Total liabilities and shareholders' equity | 148,300,945 | 113,433,044 | |
Nature of operations (Note 1) Subsequent events (Note 18) | |||
Approved and authorized for issue on behalf of the Board of Directors: | |||
/s/ "Richard Orazietti" /s/ "Lembit Janes"
Director Director
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss(Unaudited - Expressed in Canadian dollars, except number of shares)
Three months ended
June 30,
Six months ended
June 30,
Note | 2026 | 2025 | 2026 | 2025 | |
$ | $ | $ | $ | ||
Operating expenses | |||||
Consulting | 60,495 | 25,202 | 102,366 | 71,403 | |
Depreciation | 8 | 19,499 | 18,480 | 37,763 | 36,905 |
Investor relations, travel and filing fees | 186,352 | 114,386 | 481,983 | 250,134 | |
Legal and accounting | 92,476 | 155,378 | 351,248 | 225,949 | |
Office and administrative | 90,211 | 58,715 | 173,598 | 138,980 | |
Salaries and wages | 14 | 650,576 | 287,277 | 853,913 | 503,364 |
Share-based compensation | 13(d),14 | 514,532 | 194,353 | 578,779 | 245,037 |
1,614,141 | 853,791 | 2,579,650 | 1,471,772 | ||
Other income (expenses) | |||||
Amortization of flow-through premium liability | 10 | - | 256,234 | 162,411 | 558,646 |
Interest expense | 11 | (1,787) | (2,627) | (3,789) | (5,451) |
Interest income (reversal) | 7 | (310,386) | 72,113 | 501,087 | 125,094 |
Foreign exchange gain | 1,067,439 | - | 1,067,439 | - | |
Transaction costs on net smelter royalty | |||||
arrangement | 12 | (2,277,316) | - | (2,277,316) | - |
Net loss and comprehensive loss before | |||||
income tax | (3,136,191) | (528,071) | (3,129,818) | (793,483) | |
Deferred income tax recovery | 17 | 800,244 | - | 538,828 | - |
Net loss and comprehensive loss | (2,335,947) | (528,071) | (2,590,990) | (793,483) | |
Loss per share: | |||||
Basic and diluted | (0.00) | (0.00) | (0.01) | (0.00) | |
Weighted average number of common shares: | |||||
Basic and diluted | 519,058,231 | 444,742,340 | 513,763,440 | 444,742,340 | |
(Unaudited - Expressed in Canadian dollars)
Six months ended
June 30,
2026 | 2025 | |
$ | $ | |
Operating activities | ||
Net loss and comprehensive loss | (2,590,990) | (793,483) |
Adjustments for: | ||
Depreciation | 37,763 | 36,905 |
Share-based compensation | 578,779 | 245,037 |
Amortization of flow-through premium liability | (162,411) | (558,646) |
Interest expense | 3,789 | 5,451 |
Interest income | (20,671) | - |
Deferred income tax recovery | (538,828) | - |
Unrealized foreign exchange gain | (1,066,257) | - |
Changes in non-cash working capital: | ||
Accounts receivable | (267,479) | (39,367) |
Prepaid expenses and deposits | (435,655) | (470,847) |
Accounts payable and accrued liabilities | 3,218,945 | (121,013) |
Net cash used in operating activities | (1,243,015) | (1,695,963) |
Investing activities | ||
Expenditure on exploration stage mineral property | (9,709,845) | (5,845,854) |
Mineral exploration tax credit received | 3,040,619 | 1,327,740 |
Expenditure on property, plant and equipment | (59,699) | - |
Net cash used in investing activities | (6,728,925) | (4,518,114) |
Financing activities | ||
Shares to be issued | 37,550 | - |
Proceeds from exercise of options | 172,000 | - |
Proceeds from exercise of warrants | 4,440,609 | - |
Proceeds from net smelter royalty arrangement | 30,594,375 | - |
Transaction costs on net smelter royalty arrangement | (2,277,316) | - |
Lease payments | (38,559) | (37,408) |
Net cash provided by (used in) financing activities | 32,928,659 | (37,408) |
Effect of foreign exchange on cash | 1,066,257 | - |
Changes in cash | 26,022,976 | (6,251,485) |
Cash, beginning of the period | 3,837,097 | 6,873,687 |
Cash, end of the period | 29,860,073 | 622,202 |
Supplemental cash flow information: | ||
Expenditures on exploration stage mineral property included in accounts payable and | ||
accrued liabilities | 1,770,858 | 390,992 |
Share-based compensation included in exploration stage mineral property | 15,484 | 31,625 |
Depreciation included in exploration stage mineral property | 21,442 | 15,224 |
Cash interest received | 110,644 | 45,366 |
Cash interest received related to the mineral exploration tax credit | 369,772 | 67,669 |