11. Commitments and Contingencies

EPA and IDEQ Obligations

As stipulated in the EPA Amended Settlement Agreement (as further set forth in note 8), the Company is required to make two types of payments to the EPA and IDEQ, one for historical water treatment cost-recovery to the EPA, and the other for ongoing water treatment. Water treatment costs incurred through December 2021 are payable to the EPA, and water treatment costs incurred thereafter are payable to the IDEQ. The IDEQ invoices the Company on an annual basis for the water treatment costs, which may exceed the estimated costs. When the Company receives the water treatment invoices, it records any liability for actual costs over and above any estimates made and adjusts future estimates as required based on these actual invoices received. The Company is required to pay for the actual costs regardless of the periodic required estimated accruals and payments made each year.

During 2025, the Company commenced discussions with the EPA and the IDEQ to advance a second amendment to the Amended Settlement Agreement. Specifically, the Company is seeking a restructure of the ongoing obligations to the EPA and IDEQ. Discussions continued through the first half of 2026 and remain ongoing.

Crescent Legal Proceeding

On July 28, 2021, Crescent Mining, LLC (“Crescent” or the “Plaintiff”) filed a lawsuit in the U.S. District Court for the District of Idaho (the “Court”) naming the Company, Placer Mining Corporation (“Placer”), and Robert Hopper Jr. as defendants. The Plaintiff requested unspecified damages and alleged that Placer and Robert Hopper Jr. intentionally flooded the Crescent Mine during the period from 1991 and 1994, and that the Company is jointly and severally liable with the other defendants for unspecified past and future costs associated with the presence of acid mine drainage in the Crescent Mine. The Company subsequently filed a motion to dismiss the claims, resulting in the dismissal of certain claims without prejudice on March 2, 2022. The Court denied the motion to dismiss filed by Placer for Crescent’s trespass, nuisance and negligence claims. Crescent subsequently filed an amended complaint on April 1, 2022 naming Placer and the Company as co-defendants. During 2025, the parties participated in mediation sessions. The Company defended the claims on behalf of itself and Placer, pursuant to an indemnification obligation under the terms of the sale and purchase agreement between the companies dated December 15, 2021. On June 26, 2026, the Court granted the Company and Placer complete summary judgment on the Plaintiff’s two CERCLA claims and partial summary judgment on Crescent’s state-law claims for damages arising before specified cutoff dates. The Plaintiff’s later-period state-law claims and the Company’s and Placer’s CERCLA contribution claims remain pending for trial or further proceedings. The Court also denied the Plaintiff’s motion seeking dismissal of the Company’s CERCLA Section 113(f) contribution claim, which remains pending for trial.