5. Mineral Properties and Rights, Plant and Equipment, Right-of-Use Asset, and Land

Mineral properties and rights, plant and equipment, right-of-use assets, and land are comprised of the following:

Schedule of Equipment 

The Company purchased the Bunker Hill Mine (the “Mine”) in January 2022. The carrying cost of the Mine is included in Mineral properties and rights. Included in additions to Mineral properties and rights is $117,963 and $157,232 of definition drilling for the three and six months ended June 30, 2026, respectively (three and six months ended June 30, 2025 - $nil and $1,100, respectively).

On May 13, 2022, the Company purchased a comprehensive package of equipment and parts inventory from Teck Resources Limited (“Teck”), a related party as of June 5, 2025 (note 14). The package comprised substantially all processing equipment of value located at the Pend Oreille mine site, including complete crushing, grinding and flotation circuits suitable for a planned ~1,500 ton-per-day operation at the Bunker Hill site, and total inventory of nearly 10,000 components and parts for mill, assay lab, conveyer, field instruments, and electrical spares.

The process plant was purchased in an assembled state in the seller’s location, and included major processing systems, significant components, and a large inventory of spare parts. The Company disassembled it, transported it to the Bunker Hill Mine site, and reassembled it. The Company determined that the transaction would be accounted for as an asset acquisition, with the process plant representing a single asset, with the exception of the inventory of spare parts, which was separated out on the condensed interim consolidated balance sheets as a non-current asset. As the plant was demobilized, transported and reassembled, installation and other costs associated with these activities were captured and capitalized as components of the asset.

Plant and equipment is comprised of the following, net of accumulated depreciation:

Schedule of Plant and Equipment Facilities

Included in the process plant is $5,579,410 of capitalized interest as of June 30, 2026 (December 31, 2025 – $4,155,884).

The Company’s lease contracts are primarily comprised of mining related mobile equipment. Included in long-term deposit on the condensed interim consolidated balance sheets is a down payment for additional mining related mobile equipment which the Company intends to lease from Caterpillar Inc.

Land purchase and leases

The Company owns a 225-acre surface land parcel valued at its original purchase price of $202,000, which includes the surface rights to portions of 24 patented mining claims, for which the Company owns the mineral rights.

On March 3, 2023, the Company entered into a lease agreement with C & E Tree Farm LLC for the lease of a land parcel overlaying a portion of the Company’s existing mineral claims package. The Company is committed to making monthly payments of $10,000 through February 2026. The Company had the option to purchase the land parcel through March 1, 2026, for $3,129,500 less 50% of the payments made through the date of purchase. In February 2026, the Company exercised its option to purchase the land paying the remaining purchase price of $1,939,620 after deducting payments previous made of $1,000,000 which was reclassed from long term deposit to land in the six months ending June 30, 2026.

On December 12, 2025, the Company entered into an asset purchase agreement with Silver Dollar Resources (Idaho) Inc., a subsidiary of Silver Dollar Resources Inc. (“Silver Dollar”), to acquire the Ranger Page property which includes, six past-producing underground high-grade silver-lead-zinc mines located immediately adjacent to and to the west of the Bunker Hill Mine in the prolific Silver Valley mining district of Idaho, USA. The Company acquired the properties for total consideration of approximately $4,200,000 comprised of 666,667 shares of Bunker Hill’s common stock, subject to the below contractual escrow.

 Schedule of Property Acquisition Details

Sale of Mineral Properties – Royalties

On January 17, 2025, as consideration for Sprott Private Resource Streaming & Royalty Corp. (“Sprott”), a related party (note 14), advancing the debt facility, as described in note 9, the Company granted a royalty for 0.5% of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company’s 2021 ground geophysical survey. A 0.35% rate will apply to claims outside of these areas. On June 5, 2025, the 0.5% royalty was amended to apply to both primary and secondary claims comprising the Project. A sale of mineral properties of $383,789 corresponding to the issuance of the royalty on the condensed interim consolidated balance sheets.

On June 5, 2025, as consideration for Sprott Stream Conversion, as defined and described in note 9, the Company granted a royalty for 1.65% of life-of-mine gross revenue from mining claims compromising of both primary and secondary claims, as well as any new or complementing surface and mineral rights derived from the surface and mineral rights within the existing boundaries of the Bunker Hill Mine that are subsequently acquired by the Company or Silver Valley. A sale of mineral properties of $1,324,199 corresponding to the issuance of the royalty was recognized on the condensed interim consolidated balance sheets.

As of June 30, 2026, Sprott holds a 5% life-of-mine gross revenue applying to both primary and secondary comprising the Project as a result of various transactions with Sprott, including the (i) conversion of the royalty convertible debenture into a 1.85% royalty, (ii) consideration of Sprott advancing $15,000,000 on the Sprott Debt Facility, as described and defined in note 8, a 1.5% royalty was granted, and (iii) Sprott Stream Conversion a 1.65% royalty was granted.

These Sprott transactions were treated as a sale of mineral interest. The portion of the mineral interest sold was determined based on an analysis of discounted life-of-mine royalty payments relative to discounted future cash flows generated from the mine net of capital and operating costs, applied to the carrying value of the Bunker Hill Mine as of above funding dates, before consideration of the sale of mineral properties. This analysis utilized a discount rate of 15% and long-term metal prices of $1.20/lb, $0.95/lb and $27.29/oz for zinc, lead and silver respectively.