Core Insights - Solitario Resources Corp. has filed a Plan of Operations with the US Forest Service to conduct core drilling at its Bright Angel gold-copper project in Colorado, marking the first drilling since 1970 [1] - The proposed drilling program aims to explore a mineralized porphyry stockwork that contains significant gold and copper values, with mineralization traced over an area approximately 750 meters long and up to 600 meters wide [1] - The company emphasizes the importance of environmental protection in its drilling plans, aiming for minimal surface impact and adherence to state and federal abandonment standards [1] Company Overview - Solitario is focused on high-quality Tier-1 projects in gold, copper, zinc, and critical metals, with significant land holdings in South Dakota and other projects slated for drilling in 2026 [1] - The company holds a 100% interest in the Cat Creek critical minerals project and has joint ventures in high-grade zinc deposits in Alaska and Peru, with over $110 million spent collectively on these properties [1] - Solitario's current cash position is approximately US$8.2 million, and it is traded on the NYSE American and Toronto Stock Exchange [1] Historical Context - The Bright Angel project has a history of exploration dating back to the late 1960s, with Anaconda Copper having drilled 11 core holes in 1970, which intersected significant copper grades but did not prioritize gold due to fixed pricing [1] - Anaconda's exploration concluded that the Bright Angel porphyry was not a calc-alkaline system, leading to its eventual exit from mineral exploration [1] - The company plans to conduct additional surveys, including a drone magnetic survey and possibly an Induced Polarization geophysical survey, in the upcoming field season [1]

Project Interests and Operations - Solitario Resources Corp. holds a 50% operating interest in the Lik zinc-lead-silver property in Alaska, which is estimated to contain a large tonnage, high-grade deposit potentially mineable by open-pit methods [23]. - The Florida Canyon zinc project in Peru is a core asset, with Solitario holding a 39% interest, and Nexa Resources is fully funding project expenditures, increasing its ownership to 70% upon positive feasibility study [24]. - Solitario has incurred costs totaling $1,078,000 as initial acquisition costs related to the Golden Crest project, with a commitment of $3,000,000 in exploration expenditures over the first five years of the lease [25]. - The Cat Creek project in Colorado requires additional annual payments totaling $127,000 through July 2028, with escalating work commitments of $2,270,000 through December 31, 2029 [27]. - The Bright Angel project in Colorado has a lease agreement requiring additional annual payments totaling $325,000 through August 2034, with work commitments of $2,250,000 through December 31, 2034 [30]. Financial Performance and Condition - Solitario has recorded revenue in the past from the sale of mineral properties and assets, but such revenues have not been a consistent source of cash [33]. - The company is committed to addressing various risks, including macro-economic uncertainties and operational challenges, to maintain its financial condition and liquidity [20]. - The company has experienced losses related to mineral property impairments in the past and may incur similar losses in the future if capitalized costs are not recoverable [46]. - The company has reported losses in 29 of its 32 years of operations, with net income recorded in only three years: 2015, 2003, and 2000 [80]. - The company has never paid cash dividends and does not intend to do so in the foreseeable future, making returns dependent on stock price appreciation [81]. - The company has the authority to issue up to 200,000,000 shares of common stock and has an ATM program allowing the sale of up to $10,000,000 in shares [82]. - As of December 31, 2025, the company held $7,573,000 in money market funds and approximately $38,000 in uninsured deposit accounts [84]. Exploration Activities and Results - The company is actively monitoring the exploration progress of its core projects, including Florida Canyon and Lik, in collaboration with joint venture partners [12]. - The Florida Canyon and Lik projects have reported mineral resources, but the potential for upgrading these to reserves depends on additional geological work and economic evaluations by joint venture partners [48]. - The company has conducted limited exploration activities at its Golden Crest, Cat Creek, and Bright Angel projects, which currently have no reported mineral resources or reserves [52]. - Solitario has drilled a total of 4,346 meters across eleven core holes in 2024 and 2,652 meters across seven core holes in 2025 [137]. - The drilling program for 2026 includes a Phase-1, two-rig, 4,000-meter drilling initiative at Ponderosa, consisting of approximately 20 exploration core holes [157]. - The company plans an expanded Phase-2, 6,000-meter drilling program depending on results and additional funding, utilizing a third drill rig [157]. Market and Regulatory Environment - The company operates in the mineral exploration segment, conducting activities in Peru, Alaska, Colorado, and South Dakota, with total assets of $22,000 and $35,000 for operations outside the United States as of December 31, 2025, and 2024 respectively [40]. - The market price of commodities, particularly gold and zinc, significantly affects the company's operations and the value of its mineral properties, with fluctuations in prices posing risks to financial performance [53]. - The company is subject to various governmental regulations that govern exploration and mining activities, and failure to comply could adversely impact operations [37]. - Environmental regulations are becoming more restrictive, potentially leading to increased capital expenditures and operating costs for the company [38]. - Exploration operations require permits from various governments, and delays in obtaining these permits could adversely affect results and financial condition [69]. Competitive Landscape - The company faces intense competition in acquiring mineral properties, with many competitors having greater technical and financial resources, which may hinder the company's ability to compete effectively [35]. - The company is at a competitive disadvantage due to limited financial and human capital resources compared to larger competitors in the natural resources sector [60]. - The company relies on joint ventures for project success, which subjects it to risks associated with the financial condition and priorities of joint venture partners [74]. Risks and Liabilities - The title to mineral properties may be defective or challenged, potentially leading to significant costs and adverse effects on financial position [61]. - The company maintains limited insurance coverage, exposing it to risks of human injury, environmental liability, and loss of assets [64]. - The company may face insufficient funding for exploration and development, which could impair operational results and growth potential [59]. - The capital required for exploration and development of mineral properties is substantial, necessitating additional capital or joint venture arrangements [59]. - Compliance with the Foreign Corrupt Practices Act (FCPA) is critical, as violations could lead to severe penalties and adversely affect business operations [77]. - The company is dependent on key executives, and the loss of these individuals could negatively impact future operations and financial condition [73]. Specific Project Details - The Golden Crest project consists of 1,592 unpatented lode claims covering approximately 30,388 acres [99]. - The Golden Crest project is located in the Black Hills of South Dakota, an area with a historical gold production of approximately 51 million ounces through 2020 [110]. - Solitario has identified over twenty gold-enriched target areas, with fourteen containing multi-gram gold per tonne and the remaining prospects returning values between 0.1 and 1.0 grams per tonne [124]. - In 2022, the Spur trench yielded an average grade of 0.82 grams per tonne gold over 234 meters, while the Zig Zag trench resulted in an average grade of 3.22 grams per tonne gold over 27 meters [129]. - The Downpour prospect has been traced over a length of nearly 4 kilometers and a width of up to 500 meters, with 34 out of 101 reconnaissance samples containing gold values exceeding 1.0 grams per tonne [126]. - The Geyser Zone, identified in 2022, has been expanded through extensive sampling in 2023, suggesting the high-grade gold zone extends another two kilometers to the northeast [133]. - Significant gold mineralization was encountered in the Lower Deadwood Formation, particularly in hole GC-008, which showed strong mineralization [147]. - The Florida Canyon project consists of 11 concessions covering 8,700 hectares, with Solitario holding a 39% interest [162]. - Nexa may earn an additional 9% interest in the Florida Canyon project by funding future exploration and development expenditures until a production decision is made [163]. - Total payments of approximately $753,000 to the Peruvian government will be due in June 2026 to maintain all Florida Canyon mineral rights [164]. - Approximately 80% of mineralization defined at Florida Canyon is sulfide-dominant, with the remainder being mixed sulfide-oxide or oxide-dominant [178]. - The Florida Canyon project area has seen the completion of approximately 40 kilometers of access road in 2023, improving accessibility for exploration [168]. - The identified zones of strong zinc mineralization in the Florida Canyon district remain open to expansion, with interconnected mineralized zones [185]. - Florida Canyon project has estimated mineral resources of 2,441,647 tonnes with an average zinc grade of 10.62% and lead grade of 1.33% [196]. - Measured resources total 806,945 tonnes with a zinc grade of 11.32% and lead grade of 1.39% [196]. - Indicated resources total 1,634,702 tonnes with a zinc grade of 10.28% and lead grade of 1.31% [196]. - Inferred resources amount to 14,858,733 tonnes with a zinc grade of 9.63% and lead grade of 1.26% [196]. - Zinc recovery for sulfide mineralization is estimated at 91.7% with a concentrate grade of 56.6% [191]. - Lead recovery for sulfide mineralization is estimated at 88.5% with a concentrate grade of 52.1% [191]. - No commercial mining operations have occurred at the Florida Canyon project, but 700 meters of underground tunneling were completed by December 31, 2022 [198]. - The Lik Zinc project consists of 47 contiguous mining claims covering approximately 6,075 acres [204]. - Solitario holds a 50% interest in the Lik property, acquired from Zazu Metals Corp for $20 million [206]. - The joint venture with Teck for the Lik project requires unanimous approval for annual expenditures exceeding $1 million [207].

Core Viewpoint - Solitario Resources Corp. has received a Decision Memo from the U.S. Forest Service for its Ponderosa drilling program in South Dakota, marking the completion of the NEPA process for the project [1] Group 1 - The U.S. Forest Service - Northern Hills District has officially documented the completion of the NEPA process for Solitario's Ponderosa drilling program [1]

Core Viewpoint - Solitario Resources Corp. has successfully acquired the Bright Angel copper-gold project in Colorado, which contains significant mineralized porphyry stockwork with valuable gold and copper, along with minor silver values [1] Group 1 - The acquisition of the Bright Angel project marks a strategic expansion for Solitario Resources Corp. in the mining sector [1] - The mineralized porphyry stockwork at Bright Angel is noted for its significant values of gold and copper, indicating potential for future revenue generation [1] - The project also includes minor silver values, which could contribute additional value to the overall resource assessment [1]

Financial Performance - Net loss for the three months ended September 30, 2025, was $1,870,000, a decrease of 17.8% compared to a net loss of $2,276,000 for the same period in 2024[19] - Net loss for the nine months ended September 30, 2025, was $3,324,000, a decrease of 11.8% compared to a net loss of $3,768,000 for the same period in 2024[19] - For the three months ended September 30, 2025, the company reported a net loss of $1,870,000 or $0.02 per share, compared to a net loss of $2,276,000 or $0.03 per share for the same period in 2024, indicating a decrease in net loss of approximately 18%[83] - The company recorded a net gain of $666,000 on marketable equity securities for the nine months ended September 30, 2025, compared to $420,000 in the same period of 2024[49] Assets and Liabilities - Total assets increased to $25,372,000 as of September 30, 2025, compared to $23,040,000 as of December 31, 2024, representing an increase of 10.1%[14] - Current assets rose to $8,370,000, up from $5,992,000, marking a 39.8% increase[14] - Total current liabilities increased to $485,000 as of September 30, 2025, compared to $368,000 at December 31, 2024, representing a 31.8% increase[16] - Solitario's accumulated deficit increased to $66,334,000 as of September 30, 2025, compared to $63,010,000 at the end of 2024[17] - As of September 30, 2025, Solitario's total exploration mineral properties amounted to $16,706,000, slightly up from $16,701,000 as of December 31, 2024[39] Cash and Investments - Cash and cash equivalents increased to $602,000 at the end of the period, compared to $186,000 at the end of September 2024, reflecting a significant improvement[21] - As of September 30, 2025, the company had $7,945,000 in cash and short-term investments, with $7,573,000 invested in a money market account[103] - The company anticipates using cash and short-term investments to fund exploration activities for its core mineral projects, including the Florida Canyon Project and Lik Project[26] - Solitario's investments in money market funds amounted to $7,573,000 as of September 30, 2025, included in short-term investments[36] Exploration and Operating Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $3,834,000, down 13.7% from $4,440,000 in the same period of 2024[19] - Exploration expenses for the three months ended September 30, 2025, were $1,645,000, a decrease of 20.4% from $2,067,000 in the same period of 2024[40] - Exploration expenses decreased to $2,555,000 during the nine months ended September 30, 2025, down from $2,908,000 in the same period of 2024, primarily due to reduced drilling activities[96] - The company budgeted approximately $3,910,000 for full-year exploration expenditures in 2025, which includes around $1,911,000 allocated for drilling at the Golden Crest Project[85] Shareholders' Equity and Stock Options - Shareholders' equity increased from $22,520,000 at December 31, 2024, to $24,742,000 at September 30, 2025[68] - The total unrecognized stock-based compensation expense related to non-vested options is $477,000, expected to be recognized over 20 months[67] - As of September 30, 2025, the intrinsic value of outstanding stock options under the 2013 Plan is $204,000[62] - The company recorded stock-based compensation expense of $364,000 for the nine months ended September 30, 2025, compared to $540,000 for the same period in 2024[99] Market Activity - The company issued common stock, net of issuing costs, amounting to $4,976,000 during the nine months ended September 30, 2025, compared to $1,218,000 in the same period of 2024[21] - The average price per share sold under the ATM Agreement for the three months ended September 30, 2025, was $0.76, resulting in net proceeds of $418,000 after commissions and sale expenses[74] - The company sold an aggregate of 572,013 shares under the ATM Agreement during the three months ended September 30, 2025, compared to 1,802,060 shares sold in the same period of 2024[74] Reclamation and Liabilities - Solitario recorded an asset retirement obligation of $125,000 for the Lik Project, reflecting estimated reclamation costs[41] - The company has recorded a reclamation liability of $20,000 for remaining reclamation activities at the Golden Crest Project as of September 30, 2025[44] - As of September 30, 2025, Solitario has recorded an asset retirement and reclamation liability obligation of $145,000 related to its Lik Project and Golden Crest Project[60] General and Administrative Expenses - General and administrative expenses decreased to $1,257,000 for the nine months ended September 30, 2025, compared to $1,511,000 for the same period in 2024, reflecting cost management efforts[95] - The company recorded a decrease in general and administrative expenses to $379,000 for the three months ended September 30, 2025, compared to $383,000 for the same period in 2024[84]

Group 1: Stock Highlights - Solitario Resources Corp. (XPL) has seen a 33.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - CTO Realty Growth, Inc. (CTO) has experienced a 4.4% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] - Maximus, Inc. (MMS) has had a 6.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Gold Fields Limited (GFI) has seen a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Universal Insurance Holdings, Inc. (UVE) has experienced a significant 63.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1 - The company has secured drilling permits for its Cat Creek critical metals project in Colorado [1] - The Cat Creek project is characterized as a high-quality undrilled molybdenum-rhenium porphyry system [1]

Core Insights - Solitario Resources Corp. has reported a significant discovery of 1,445 grams per tonne silver (46.5 oz) in drill hole GC-012, indicating a high-grade interval of precious metal mineralization [1] Company Summary - The high-grade silver interval is noted to represent an unrecognized style of precious metal mineralization for the Golden Crest project [1] - This mineralization is also described as unique compared to the historic Homestake and Wharf mining areas [1]

Core Points - Solitario Resources Corp. will have President and CEO Chris Herald present at the 37th Annual Mining Forum Americas 2025 Conference [1] - The presentation is scheduled for September 16, 2025, at 9:20 am Mountain Time [1] - The focus of the presentation will be on a strategic overview of Solitario's activities and recent drilling results from the Golden Crest gold project in South Dakota [1] Company Activities - The company is actively engaged in a drilling program for 2025 at its Golden Crest gold project [1] - Recent drilling results will be highlighted during the upcoming presentation [1] Industry Context - The Mining Forum Americas 2025 Conference serves as a platform for industry leaders to discuss developments and opportunities within the mining sector [1]

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents Solitario's unaudited condensed consolidated financial statements, management's discussion, market risk disclosures, and controls and procedures [Item 1. Financial Statements](index=2&type=section&id=Item%201%20Financial%20Statements) This section presents Solitario's unaudited financial statements, detailing Q2 2025 increased net loss and six-month period performance [Condensed Consolidated Balance Sheets](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) This section details Solitario's financial position, including assets, liabilities, and equity as of June 30, 2025 | (in thousands of U.S. dollars) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | **Assets** | | | | Cash and cash equivalents | $195 | $81 | | Short-term investments | $8,823 | $4,523 | | Marketable equity securities | $401 | $1,322 | | Total current assets | $9,648 | $5,992 | | Mineral properties | $16,701 | $16,701 | | Total assets | $26,663 | $23,040 | | **Liabilities** | | | | Accounts payable | $461 | $258 | | Kinross call option liability | $- | $67 | | Total current liabilities | $490 | $368 | | Total liabilities | $635 | $520 | | **Shareholders' Equity** | | | | Common stock | $900 | $816 | | Additional paid-in capital | $89,592 | $84,714 | | Accumulated deficit | $(64,464) | $(63,010) | | Total shareholders' equity | $26,028 | $22,520 | - Total assets increased by **$3,623,000 (15.7%)** from December 31, 2024, to June 30, 2025, primarily driven by increases in cash and short-term investments[13](index=13&type=chunk)[14](index=14&type=chunk) - Total current liabilities increased by **$122,000 (33.1%)** from December 31, 2024, to June 30, 2025, mainly due to an increase in accounts payable and the elimination of the Kinross call option liability[14](index=14&type=chunk)[15](index=15&type=chunk) - Total shareholders' equity increased by **$3,508,000 (15.6%)** from December 31, 2024, to June 30, 2025, largely due to additional paid-in capital from stock issuances[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section outlines Solitario's financial performance for the three and six months ended June 30, 2025 and 2024 | (in thousands of U.S. dollars, except per share amounts) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Exploration expense | $671 | $487 | $910 | $841 | | General and administrative | $388 | $656 | $878 | $1,128 | | Total operating expense | $1,066 | $1,149 | $1,802 | $1,982 | | Interest and dividend income | $52 | $106 | $98 | $201 | | Loss on derivative instruments | $(130) | $(21) | $(336) | $(21) | | Realized and unrealized gain on sale of marketable equity securities | $201 | $302 | $586 | $310 | | Total other income (loss) | $123 | $387 | $348 | $490 | | Net loss | $(943) | $(762) | $(1,454) | $(1,492) | | Loss per common share (Basic and diluted) | $(0.01) | $(0.01) | $(0.02) | $(0.02) | - Net loss increased by **$181,000 (23.7%)** for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to higher exploration expense and derivative losses[18](index=18&type=chunk) - Net loss decreased by **$38,000 (2.5%)** for the six months ended June 30, 2025, compared to the same period in 2024, mainly driven by lower general and administrative expenses and higher realized gains on marketable equity securities[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) This section presents Solitario's cash flows from operating, investing, and financing activities | (in thousands of U.S. dollars) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(1,401) | $(1,570) | | Net cash (used) provided by investing activities | $(3,196) | $414 | | Net cash provided by financing activities | $4,711 | $1,232 | | Net increase in cash and cash equivalents and restricted cash | $114 | $76 | | Cash, cash equivalents and restricted cash, end of period | $425 | $276 | - Net cash used in operating activities decreased by **$169,000 (10.8%)** for the six months ended June 30, 2025, compared to the same period in 2024[20](index=20&type=chunk) - Net cash used in investing activities significantly increased to **$(3,196,000)** for the six months ended June 30, 2025, from a net cash provided of **$414,000** in the prior year, primarily due to net purchases of short-term investments[20](index=20&type=chunk) - Net cash provided by financing activities increased by **$3,479,000 (282.4%)** for the six months ended June 30, 2025, mainly driven by common stock issuances from private placements[20](index=20&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and disclosures for the unaudited financial statements [1. Business and Significant Accounting Policies](index=4&type=section&id=1.%20Business%20and%20Significant%20Accounting%20Policies) This note describes Solitario's business operations and significant accounting policies - Solitario Resources Corp. is an exploration stage company focused on acquiring and exploring precious metal, zinc, and other base metal mineral properties, primarily in North and South America[21](index=21&type=chunk)[22](index=22&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - Core mineral property assets include the Florida Canyon zinc project in Peru, the Lik zinc project in Alaska, and the Golden Crest project in South Dakota, along with the early-stage Cat Creek project in Colorado[24](index=24&type=chunk)[78](index=78&type=chunk) - The company adopted ASU 2023-05 (Joint Venture Formations) and ASU 2023-09 (Income Tax Disclosures) in Q1 2025, neither of which had a material impact on financial position or results[28](index=28&type=chunk)[29](index=29&type=chunk) - Solitario is assessing the impact of ASU 2024-03 (Expense Disaggregation Disclosures), effective for annual periods beginning after December 15, 2026[30](index=30&type=chunk)[31](index=31&type=chunk) [2. Mineral Properties](index=6&type=section&id=2.%20Mineral%20Properties) This note provides details on Solitario's mineral property assets and associated exploration expenditures | (in thousands) | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Lik Project | $15,611 | $15,611 | | Golden Crest Project | $1,078 | $1,078 | | Cat Creek Project | $12 | $12 | | Total exploration mineral properties | $16,701 | $16,701 | | (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------- | :----------------