3. Liquidity

The Company’s cash needs going forward will primarily relate to exploration of the Contango Properties, repayment of debt and related interest, and general and administrative expenses of the Company. As of December 31, 2025, the Company has working capital deficit balance of $8.0 million, which includes $66.5 million connected with the fair value of the current maturities of the hedges. During the fiscal year ended December 31, 2025, the Company generated $25.7 million from operating activities and increased its cash by $44.6 million. There are no anticipated future cash calls going forward from the Peak Gold JV. Operations commenced in July 2024 which has allowed the Peak Gold JV to operate from the cash flows generated from its operations and has resulted in excess cash for distributions. The Company received from the Peak Gold JV $40.5 million in cash distributions in 2024 and $102.0 million in cash distributions in 2025, relating to production at Manh Choh. In total, the Company has received $142.5 million in cash distributions from the Peak Gold JV since commencing the processing of Manh Choh ore in July 2024. There can be no guarantee that the Peak Gold JV will make future distributions to the Company. The Company believes that distributions are probable. During 2025, the Company completed capital raises for net proceeds totaling $9.6 million and $47.0 million through its ATM offering and Underwritten offering, respectively (See Note 7 - Stockholders' Equity). The Company made principal payments on the Facility of $7.9 million in 2024 and $37.5 million in 2025. Subsequent to year end, the Company completed a capital raise for net proceeds totaling $47.2 million through an underwritten offering (See Note 19 - Subsequent Events). The Company believes it will maintain sufficient liquidity generated from cash flows from operations, and if necessary, cash from equity issuances. The ability of the Company to refinance current debt or arrange additional financing in the future will depend, in part, on the prevailing capital market conditions, the results achieved at the Peak Gold JV Property, as well as the market price of metals. The Company cannot be certain that financing will be available on acceptable terms, if at all, and that it will maintain sufficient liquidity to meet its working capital requirements, including repayment of obligations of approximately $4.0 million on the Facility, as defined in Note 14 - Debt, and delivery into its hedge contracts, for the twelve consecutive months subsequent to the date of this report.