Part I [Financial Statements (unaudited)](index=4&type=section&id=Item%201%20Financial%20Statements%20(unaudited)) Dakota Gold Corp. reported a net loss of $9.3 million for Q1 2023, significantly higher than the $2.2 million loss in the prior year, primarily due to increased exploration expenses [Condensed Consolidated Interim Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Balance%20Sheets) Total assets decreased to $101.6 million from $105.0 million, primarily due to a reduction in cash and cash equivalents, while stockholders' equity also declined Condensed Consolidated Interim Balance Sheets Highlights | Balance Sheet Highlights | March 31, 2023 ($) | December 31, 2022 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | 20,273,152 | 23,911,722 | | Total current assets | 21,241,782 | 24,637,991 | | Mineral rights and properties | 78,757,287 | 78,737,287 | | Total assets | 101,598,146 | 105,022,719 | | Total liabilities | 3,540,074 | 3,846,981 | | Total stockholders' equity | 98,058,072 | 101,175,738 | [Condensed Consolidated Interim Statement of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Loss) Net loss for Q1 2023 was $9.3 million, a significant increase from a $1.3 million net income in Q1 2022, driven by higher exploration expenses Condensed Consolidated Interim Statement of Comprehensive Loss Highlights | Income Statement Highlights (Three months ended March 31) | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Exploration expenses | 6,837,759 | 1,217,212 | | General and administrative expenses | 2,737,421 | 6,420,954 | | Loss from operations | (9,575,180) | (7,638,166) | | Net loss and comprehensive loss | (9,266,031) | (2,194,295) | | Net income (loss) attributable to Dakota Gold Corp. | (9,266,031) | 1,259,605 | | Basic and diluted profit (loss) per share | (0.13) | 0.04 | [Condensed Consolidated Interim Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to $8.5 million, with financing activities providing $4.9 million, resulting in a net cash decrease Condensed Consolidated Interim Statements of Cash Flows Summary | Cash Flow Summary (Three months ended March 31) | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (8,461,825) | (2,760,928) | | Cash used in investing activities | (72,022) | (2,628,438) | | Cash provided by financing activities | 4,895,277 | 0 | | Net change in cash and cash equivalents | (3,638,570) | (5,389,366) | | Cash and cash equivalents, end of period | 20,273,152 | 41,401,116 | [Notes to the Condensed Consolidated Interim Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Notes clarify the company's exploration-stage status, management's going concern confidence, mineral property valuation, and financing details - Management believes its cash balance of approximately **$20.3 million** at March 31, 2023, and its ability to utilize its ATM program alleviate doubt about the company's ability to continue as a going concern[21](index=21&type=chunk) - The carrying cost of the Company's mineral properties, aggregated as the Black Hills Property, totaled **$78,757,287** as of March 31, 2023[30](index=30&type=chunk)[32](index=32&type=chunk) - During Q1 2023, the company raised gross proceeds of approximately **$5 million** by issuing **1,886,800 shares** of common stock through its ATM program[39](index=39&type=chunk) - Total stock-based compensation expense for Q1 2023 was **$1,292,734**, comprising **$647,649** for stock options and **$645,085** for RSUs and PSUs[15](index=15&type=chunk)[45](index=45&type=chunk)[57](index=57&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discussed increased exploration activities and new discoveries, with planned $30 million expenditures for 2023, contributing to a higher net loss [Overview and Strategy](index=19&type=section&id=Overview%20and%20Strategy) The company's strategy focuses on acquiring and exploring gold properties in South Dakota's Homestake District, aiming to build a dominant land position - The company's goal is to create stockholder value through acquisition, exploration, and development of gold properties in the Homestake District of South Dakota, leveraging its team's extensive experience in the region[75](index=75&type=chunk) - Dakota Gold has built a dominant land position covering **45,752 acres** in the Homestake District, believing the area outside the historic mine is underexplored[31](index=31&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [Drill Programs and Planned Activities](index=20&type=section&id=Drill%20Programs%20and%20Planned%20Activities) The company operated four drill rigs, completing **77,994 feet** of drilling in Q1 2023, leading to new discoveries and planning **$30 million** in expenditures - In Q1 2023, the company operated four drill rigs and completed **77,994 feet (23,773 meters)** of core drilling across its Maitland, Richmond Hill, and Cambrian Unconformity projects[80](index=80&type=chunk) - Significant discoveries were announced, including the Unionville Zone and the JB Gold Zone, the latter of which showed mineralization style similar to the historic Homestake Mine[81](index=81&type=chunk)[82](index=82&type=chunk) - The company anticipates expenditures of approximately **$30 million** for the calendar year 2023, which will require raising additional capital, but can scale down the program if funding is not secured[85](index=85&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) As an exploration-stage company, Dakota Gold relies on equity financing, holding **$18.8 million** in working capital and raising **$4.9 million** from its ATM program - As of March 31, 2023, the company had working capital of approximately **$18.8 million**[88](index=88&type=chunk) - In Q1 2023, the company raised approximately **$4.9 million** in net proceeds from its ATM program, along with an additional **$30,757** from the exercise of stock options and warrants[89](index=89&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Loss from operations increased to **$9.6 million** in Q1 2023 due to higher exploration expenses, while general and administrative expenses decreased to **$2.7 million** - Exploration expenses increased from **$1.2 million** in Q1 2022 to **$6.8 million** in Q1 2023, primarily due to an increase in drilling activity from one to four operating drills[93](index=93&type=chunk) - General and administrative expenses decreased from **$6.42 million** in Q1 2022 to **$2.74 million** in Q1 2023, mainly due to lower stock-based compensation and reduced professional and consulting fees[95](index=95&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable to the company for the reporting period - Not applicable[102](index=102&type=chunk) [Controls and Procedures](index=23&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes in internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2023, the Company's disclosure controls and procedures were effective[103](index=103&type=chunk) - There were no changes in internal control over financial reporting during the three months ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, the Company's internal controls[105](index=105&type=chunk) Part II [Legal Proceedings](index=24&type=section&id=Item%201%20Legal%20Proceedings) The company reported that there were no legal proceedings during the period - None[107](index=107&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Transition Report on Form 10-KT - No material changes from the risk factors previously disclosed in the Company's Transition Report on Form 10-KT[108](index=108&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not sell any equity securities that were not registered under the Securities Act of 1933 during the three months ended March 31, 2023 - The company did not have any unregistered sales of equity securities in Q1 2023[109](index=109&type=chunk) [Defaults Upon Senior Securities](index=24&type=section&id=Item%203%20Defaults%20Upon%20Senior%20Securities) This section is not applicable - Not applicable[110](index=110&type=chunk) [Mine Safety Disclosure](index=24&type=section&id=Item%204%20Mine%20Safety%20Disclosure) For the three months ended March 31, 2023, the company's exploration properties were not subject to regulation by the Federal Mine Safety and Health Administration - The Company's exploration properties were not subject to regulation by the Federal Mine Safety and Health Administration during the quarter[111](index=111&type=chunk) [Other Information](index=24&type=section&id=Item%205%20Other%20Information) There was no other information to report for the period - None[112](index=112&type=chunk) [Exhibits](index=25&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO and XBRL data files

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________to ___________ Commission file number 000-41349 Dakota Gold Corp. (Exact Name of Registrant as Specified in its charter) Nevada 85-3475290 (State or other j ...

Financial Performance - Net loss for the three months ended June 30, 2022, was $5,808,725, compared to a net loss of $12,842,724 for the same period in 2021, representing a 54.8% improvement[16] - Basic and diluted loss per share improved to $(0.08) from $(0.17) year-over-year[16] - For the three months ended June 30, 2022, the net loss attributable to owners of the Company was $5,808,725, a decrease from a net loss of $8,294,677 for the same period in 2021, representing a 30% improvement[16] - The total operating expenses for the three months ended June 30, 2022, were $7,080,178, down from $12,912,389 in the prior year, indicating a reduction of approximately 45%[16] - The total other income for the three months ended June 30, 2022, was $52,729, compared to an expense of $105,315 in the same period of 2021, indicating a significant turnaround[16] - The Company reported a deferred tax benefit of $1,218,724 for the three months ended June 30, 2022, compared to $174,980 in the same period of 2021, marking a substantial increase[16] Assets and Liabilities - Total current assets decreased from $41,872,612 to $36,677,980, a decline of approximately 12.5%[10] - Total stockholders' equity decreased from $113,834,405 to $109,960,197, a decline of about 3.8%[11] - Total liabilities decreased from $6,250,177 to $5,042,258, a reduction of approximately 19.3%[12] - Total assets decreased from $120,084,582 to $115,002,455, a decline of approximately 4.2%[10] - Cash and cash equivalents at the end of the period were $35,042,049, down from $41,401,116, a decrease of approximately 15.4%[19] - The total current liabilities as of June 30, 2022, were $2,547,959, compared to $2,537,154 as of March 31, 2022[12] Exploration and Investment - Exploration expenses increased to $3,771,517 from $2,183,641, reflecting a 72.8% rise year-over-year[16] - The carrying cost of the company's mineral properties was $77,000,841 as of June 30, 2022, slightly up from $76,962,958 as of March 31, 2022[33] - The Company completed the purchase of the Maitland Gold Property for a total consideration of $4.82 million, including $3.5 million in cash and 750,000 shares valued at $1.76 each[29] - The Company made a cash payment of $1.3 million and issued 1 million shares valued at $4,850,000 to acquire surface rights and facilities in the Homestake District[30] - The Company holds a total of 43,971 acres of surface and mineral lease rights across eleven brownfield project areas in the Homestake District[32] - The Company has not established proven or probable mineral reserves under Regulation S-K Subpart 1300 as of June 30, 2022[32] Stock and Compensation - The weighted average number of basic and diluted shares outstanding increased to 70,958,194 from 49,064,261, an increase of about 44.5%[16] - The Company recognized stock-based compensation related to the vesting of RSUs totaling $1,068,173 for the three months ended June 30, 2022, with $903,544 allocated to administrative expenses[53] - The Company recognized stock-based compensation related to the vesting of stock options totaling $854,344 for the three months ended June 30, 2022[46] - The unrecognized compensation cost related to unvested options as of June 30, 2022, was $1,626,055, which will be expensed through December 2023[51] - As of June 30, 2022, there were 7,615,718 warrants outstanding, all with an exercise price of $2.08, expiring on March 15, 2026[52] - The Company issued 800,000 shares of common stock for restricted stock units during the three months ended June 30, 2022[22] Mergers and Acquisitions - Dakota Gold Corp. completed the DTRC Merger on March 31, 2022, acquiring the remaining shares of Dakota Territory Resource Corp. for an equal number of shares[24] - The DTRC Merger was completed on March 31, 2022, resulting in Dakota Gold owning approximately 51% of the combined entity, enhancing its market position[24]

Exploration and Development - Dakota Gold Corp. reported a significant increase in exploration expenditures, totaling $5 million for the year, representing a 25% increase compared to the previous year[14]. - The company anticipates a 15% increase in mineral reserves at its Black Hills Property following ongoing drilling programs[15]. - Dakota Gold Corp. plans to expand its operations in the Homestake District, with an estimated budget of $10 million allocated for future exploration activities[14]. - The company successfully raised $3 million in capital to support its exploration plans, reflecting strong investor confidence[15]. - Dakota Gold Corp. is in the process of obtaining necessary permits for future drill programs, which is expected to enhance operational efficiency[15]. - The company reported a 20% increase in the average grade of ore from its recent drilling results, indicating improved mineral quality[14]. - Dakota Gold Corp. expects to achieve a production target of 50,000 ounces of gold in the upcoming fiscal year, a 30% increase from the previous year[15]. - The company is exploring potential acquisition opportunities to enhance its asset portfolio and market position[15]. - The company aims to introduce new technologies in its mining operations to increase efficiency and reduce costs by 10% over the next year[14]. Risks and Challenges - The company faces risks associated with a lack of defined resources that are not SEC S-K 1300 compliant reserves[16]. - The company has a history of losses and requires additional financing to develop a producing mine[16]. - The exploration activities may not be commercially successful, impacting the company's financial condition[16]. - The company is subject to fluctuations in commodity prices, which can affect its operations[16]. - There are risks related to governmental and environmental regulations that may impact future operations[16]. - The company has identified potential risks associated with the COVID-19 pandemic and cybersecurity threats[16]. - The company is dependent on key personnel, which poses risks related to its ability to manage growth[16]. - The company has a limited operating history, which adds uncertainty to its future performance[16]. - The company may face challenges in attracting and retaining qualified personnel[16]. Forward-Looking Statements - The company cautions that actual results may vary materially from forward-looking statements due to various risks and uncertainties[17]. - The company anticipates future results and developments based on forecasts and management assumptions[14]. - Forward-looking statements include expectations regarding the exploration program at the Black Hills Property in South Dakota[15]. - The company acknowledges risks associated with fluctuations in commodity prices affecting its financial condition[16]. - There are uncertainties regarding the success of obtaining necessary permits for future drill programs[15]. - The exploration activities are currently in the exploration stage, which presents inherent risks[16]. - The company is subject to various regulatory and environmental risks that could impact operations[16]. - There is a potential need for additional financing to develop a producing mine if warranted[16]. - The company warns against placing undue reliance on forward-looking statements due to inherent uncertainties[17]. - The company disclaims any obligation to revise forward-looking statements after their date[17].