Exhibit 99.1

 

 

 

 

 

 

Solaris Resources Inc.

 

Condensed Consolidated Interim Financial Statements

 

For the three and six months ended June 30, 2026 and 2025

 

(Unaudited)

 

 

 

 

 

Solaris Resources Inc.

Condensed Consolidated Interim Statements of Financial Position

(Unaudited – In thousands of United States dollars)

 

 

   Note   June 30,
2026
   December 31,
2025
 
             
Assets            
             
Current assets            
Cash and cash equivalents      $54,014   $25,210 
Prepaids and other  3    954    595 
Supplies inventory       168    156 
        55,136    25,961 
               
Non-current assets              
Restricted cash  5    571    821 
Exploration and evaluation assets  4    42,503    26,282 
Property, plant and equipment  6    4,701    4,964 
               
Total assets      $102,911   $58,028 
               
Liabilities and Equity              
               
Current liabilities              
Accounts payable and accrued liabilities  7   $6,497   $7,775 
Current tax liability       14    568 
Lease liability       41    57 
        6,552    8,400 
Long-term liabilities              
Lease liability       347    420 
Reclamation provision  5    4,623    4,227 
Deferred revenue  8    141,333    93,674 
Other long-term liability       348    288 
Total liabilities      $153,203   $107,009 
               
Shareholders’ deficit              
Common shares  9   $253,577    252,408 
Reserves  9    21,574    15,569 
Deficit       (333,258)   (324,810)
Deficit attributable to shareholders of the Company       (58,107)   (56,833)
Non-controlling interests       7,815    7,852 
Total shareholders’ deficit      $(50,292)  $(48,981)
               
Total liabilities and shareholders’ deficit      $102,911   $58,028 
               
Nature of operations and going concern (Note 1)              
Commitments (Notes 14(b), 17)              

 

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

 

Page 2 of 18

 

 

Solaris Resources Inc.

Condensed Consolidated Interim Statements of Net Loss and Comprehensive Loss

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, except share and per share amounts)

 

 

       Three months ended June 30,   Six months ended June 30, 
   Note   2026   2025   2026   2025 
                     
Gain on sale of royalty interest  8   $-   $(9,812)  $-   $(9,812)
Exploration expenses  11    1,195    8,850    2,005    21,167 
General and administrative expenses  12, 16    2,712    5,566    6,042    7,783 
Loss from operations      $3,907   $4,604    8,047    19,138 
                         
Finance cost  13   $1,603   $2,006   $2,708   $3,554 
Interest and other income       (425)   (121)   (567)   (334)
Foreign currency gains       (1,579)   (1,151)   (1,703)   (1,646)
Net loss      $3,506   $5,338   $8,485   $20,712 
                         
Other comprehensive income                        
Items that may be reclassified to profit or loss:                        
Foreign currency translation      $(1,785)  $2,518   $(3,356)  $2,254 
Total comprehensive loss      $1,721   $7,856   $5,129   $22,966 
                         
Net loss attributable to:                        
Shareholders of the Company      $3,492   $5,322   $8,448   $20,676 
Non-controlling interest       14    16    37    36 
       $3,506   $5,338   $8,485   $20,712 
                         
Total comprehensive loss attributable to:                        
Shareholders of the Company      $1,707   $7,840   $5,092   $22,930 
Non-controlling interest       14    16    37    36 
       $1,721   $7,856   $5,129   $22,966 
                         
Net loss per share attributable to shareholders of the Company                        
Basic and diluted      $0.02   $0.03   $0.05   $0.13 
                         
Weighted average number of shares outstanding                        
Basic and diluted       167,040,313    164,565,431    166,989,664    163,993,754 

 

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

 

Page 3 of 18

 

 

Solaris Resources Inc.

Condensed Consolidated Interim Statements of Cash Flows

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars)

 

 

       Three months ended June 30,   Six months ended June 30, 
   Note   2026   2025   2026   2025 
                     
Cash provided by (used in):                    
Operations                    
Net loss for the period      $(3,506)  $(5,338)  $(8,485)  $(20,712)
Adjustments for:                        
Finance cost  13    1,603    2,006    2,708    3,554 
Finance income       (425)   (121)   (567)   (334)
Foreign exchange       (1,579)   (1,151)   (1,703)   (1,646)
Share-based compensation  12    1,479    1,008    3,109    2,080 
Depreciation       27    177    43    395 
Warintza royalty sale  8        188        188 
Reclamation provision           164        252 
Income tax       (554)       (554)    
Other                   (6)
Net changes in working capital items:                        
Prepaids and other       (197)   (4)   (363)   43 
Supplies inventory       (12)       (12)    
Accounts payable and accrued liabilities       (59)   (2,170)   (2,271)   (6,366)
Reclamation provision settlement       (97)       (97)   (1)
Deferred Revenue  8    50,000    90,000    50,000    90,000 
Other long-term liability       32    (46)   60    8 
        46,712    84,713    41,868    67,455 
                         
Financing                        
Other finance costs paid       (13)       (13)    
Proceeds from private placements of common shares                   244 
Proceeds from exercise of stock options           407        463 
Interest expense related to loan payable  8         (7,257)       (7,257)
Loan drawdown  8        15,000        15,000 
Loan repayment  8        (60,000)       (60,000)
Payment of lease liability       (52)   (65)   (112)   (122)
        (65)   (51,915)   (125)   (51,672)
                         
Investing                        
Restricted cash withdrawal  5            250     
Finance income received       425    87    567    341 
Capital expenditure on property, plant and equipment       (272)   (593)   (511)   (1,357)
Capital expenditure on exploration and evaluation assets       (5,658)       (13,310)    
        (5,505)   (506)   (13,004)   (1,016)
                         
Effect of exchange rate changes on cash and cash equivalents       (22)   513    65    542 
                         
Increase in cash and cash equivalents       41,120    32,805    28,804    15,309 
Cash and cash equivalents, beginning of period       12,894    14,242    25,210    31,738 
                         
Cash and cash equivalents, end of period      $54,014   $47,047   $54,014   $47,047 

 

Supplemental cash flow information (Note 18)

 

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

 

Page 4 of 18

 

 

Solaris Resources Inc.

Condensed Consolidated Interim Statements of Changes in Equity

For the six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, except number of shares)

 

 

       Share Capital   Reserves             
   Note   Number of
Shares
   Amount   Options,
RSUs and
warrants
   Foreign
currency
translation
   Total   Deficit   Non-controlling
interest
   Total
equity
 
                                     
Balance, December 31, 2025       166,896,936    252,408    15,586    (17)   15,569    (324,810)   7,852    (48,981)
Shares issued on exercise of stock options  9    174,686    1,169    (1,169)       (1,169)            
Share-based compensation  9            3,818        3,818            3,818 
Net loss and comprehensive loss                   3,356    3,356    (8,448)   (37)   (5,129)
Balance, June 30, 2026       167,071,622    253,577    18,235    3,339    21,574    (333,258)   7,815    (50,292)
                                             
Balance, December 31, 2024       163,234,932    244,718    18,546    2,118    20,664    (282,582)   7,914    (9,286)
Private placement equity financing, net of share issue costs  9    83,333    244                        244 
Shares issued on exercise of stock options  9    2,441,373    1,616    (1,154)       (1,154)           462 
Share-based compensation  9              2,080         2,080              2,080 
Net loss and comprehensive loss                   (2,254)   (2,254)   (20,676)   (36)   (22,966)
Balance, June 30, 2025       165,759,638    246,578    19,472    (136)   19,336    (303,258)   7,878    (29,466)

 

The accompanying notes form an integral part of these condensed consolidated interim financial statements.

 

Page 5 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

1.Nature of operations AND GOING CONCERN

 

Solaris Resources Inc. (the “Company” or “Solaris”) was incorporated under the Business Corporations Act of British Columbia on June 18, 2018 as a wholly owned subsidiary of Equinox Gold Corp. (“Equinox”). Equinox subsequently completed a spin-out of Solaris pursuant to a plan of arrangement (the “Arrangement”). Solaris’ common shares trade on the Toronto Stock Exchange under the symbol “SLS” and the NYSE American under the symbol “SLSR”.

 

The Company is engaged in the acquisition, exploration and development of mineral property interests. The Company’s assets consist primarily of the Warintza property (“Warintza”) and ENAMI concessions in Ecuador, the 60% owned La Verde property (“La Verde”) in Mexico and the Tamarugo property (“Tamarugo”) in Chile. In November 2025, the Company published the results of a pre-feasibility study (“PFS”) for the Warintza project. The Company has not yet determined whether its properties contain mineral reserves where extraction is both technically feasible and commercially viable. The business of mining and exploration for minerals involves a high degree of risk and there can be no assurance that such activities will result in profitable mining operations.

 

These condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due for the foreseeable future. The Company does not generate operating cash flow from a producing mine and has incurred operating losses to date. The Company has relied on cash received from share issuances and project financing to fund its business activities, including planned corporate expenditures, exploration expenses, and development activities for the Warintza project. The Company’s ability to continue as a going concern is dependent upon the successful execution of its business plan, meeting certain Warintza project milestones, raising additional capital and/or evaluating strategic alternatives for its mineral property interests. The Company expects to continue to obtain the necessary funds primarily through the remaining drawdown from the Royal Gold funding package (see below) and/or the issuance of common shares in support of its business objectives. While the Company has been successful in securing financing to date, there can be no assurances that debt facilities, future equity financing, or strategic alternatives will be available on acceptable terms to the Company or at all.

 

As at June 30, 2026, the Company had cash and cash equivalents of $54,014. On May 21, 2025, the Company entered into a funding package (the “Funding Package”) with RGLD Gold AG (“Royal Gold”), a subsidiary of Royal Gold, Inc., for the Warintza project. The total cash consideration under the agreements is $200,000, comprising a gold stream agreement (the “Stream Agreement”) and net smelter return royalty agreement (the “Royalty Agreement”) (collectively, the “Financing Agreements”). Royal Gold will pay Solaris total cash consideration of $200,000 in three instalments as follows:

 

First tranche of $100,000 upon close of the transaction (funds received at closing which occurred concurrently with signing). $90,000 allocated to the Stream and $10,000 allocated to the Royalty as per the contracts and cash received;

 

Second tranche of $50,000 made available following the publication of the PFS and receipt of the technical approval of the EIA, received on April 14, 2026 and allocated to the Stream as per the contract; and

 

Third tranche of $50,000 made available on the first anniversary of the closing date and completion of all filings necessary to fully perfect Royal Gold’s security, which is ongoing. On completion this will be allocated to the Stream as per the contract.

 

Based on its current forecasted expenditures, the Company requires the additional financing from the third tranche of the Royal Gold funding package to fund ongoing operations for the next twelve months. As a result, material uncertainty exists that casts significant doubt about the Company’s ability to continue as a going concern. These condensed consolidated interim financial statements do not reflect the adjustments to carrying values of assets and liabilities, expenses, and financial position classifications that would be necessary if the going concern assumption were not appropriate. These adjustments could be material. Refer to Note 8 for details on the Stream Agreement.

 

Page 6 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

2.Basis of preparation

 

(a)Statement of compliance

 

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 (“IAS 34”), Interim Financial Reporting, and do not include all of the information required for annual financial statements prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”). However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company’s financial position and performance since the last annual financial statements.

 

These condensed consolidated interim financial statements should be read in conjunction with the Company’s most recent annual audited financial statements for the year ended December 31, 2025. The accounting policies, significant judgments made by management in applying these policies and key sources of estimation uncertainty are the same as those applied in the Company’s annual audited consolidated financial statements for the year ended December 31, 2025.

 

These condensed consolidated interim financial statements were approved and authorized for issuance by the Board of Directors on August 5, 2026.

 

(b)Revision of prior period financial statement

 

In preparing the condensed consolidated interim financial statements as of and for the three and nine months ended September 30, 2025, the Company identified an error whereby a provision of $713 which had been held against salary and benefits at December 31, 2024 had not been released against the recognition of cost in the correct quarter. The identified error impacts the condensed consolidated interim financial statements for the six months ended June 30, 2025. The disclosures relating to these items in the periods mentioned above have been restated to correct for this error.

 

Additionally, the Company identified an error whereby the foreign currency calculations related to retranslation of deferred revenue to the functional currency of $1,479 and amortization of loan arrangement fees of $651 had been incorrectly calculated. The identified error impacts the condensed consolidated interim financial statements for the six months ended June 30, 2025. The Company evaluated the error and determined that the related impacts were not material. The disclosures relating to these items in the periods mentioned above have been restated to correct for this error.

 

3.Prepaids and other

 

    Note  June 30,
2026
   December 31,
2025
 
Prepaid expenses and deposits      $792   $519 
Taxes recoverable       30    40 
Amounts receivable and other       132    36 
        954   $595 

 

Page 7 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

4.Exploration and evaluation assets

 

   Note  June 30,
2026
   December 31,
2025
 
La Verde (Mexico)  a)  $19,741   $19,741 
Warintza (Ecuador)  b)   22,262    6,291 
ENAMI Concessions (Ecuador)  c)   500    250 
      $42,503   $26,282 

 

The Company’s additions to the Warintza asset in the six months ended June 30, 2026 are provided below (six months to June 30, 2025: $(188) reduction).

 

   June 30,
2026
   December 31,
2025
 
Opening  $6,291   $188 
Exploration and evaluation expenditures   14,164    5,772 
Capitalized share-based compensation   709    120 
Capitalized depreciation of property, plant and equipment   731    331 
Changes to reclamation provision   367    68 
Reduction on sale of royalty   -    (188)
Closing  $22,262   $6,291 

 

a)La Verde

 

La Verde is situated in the Sierra Madre del Sur west of Mexico City in Michoacán State, Mexico and consists of the Unificación Santa Maria claim. The project is held 60% by the Company and 40% by a subsidiary of Teck Resources Limited. The joint venture agreement governing the operation and funding of La Verde was formalized effective February 28, 2015 (the “Agreement”). The Agreement provides that Solaris is the operator of the project. The Agreement further provides for dilution of either parties’ ownership should funding not be provided in accordance with their respective participating interests. La Verde is subject to a 0.5% net smelter royalty held by Minera CIMA, S.A. de C.V.

 

b)Warintza

 

The Company owns a 100% interest in Warintza. Warintza is located in southeastern Ecuador in the province of Morona Santiago, Canton Limon Indanza. It consists of nine mining concessions (the “Concessions”) covering a total of 26,773 hectares. The Concessions have a term of 25 years and can be renewed for additional periods of 25 years. South32 Royalty Investments Pty Ltd holds a 2% net smelter royalty on the original four concessions covering a total of 10,000 hectares. Additionally, Royal Gold holds a 0.3375% net smelter return royalty covering a total of 18,600 hectares.

 

c)ENAMI Concessions

 

(i)ENAMI 1

 

Solaris has entered an option agreement to acquire up to a 100% interest in 10 new exploration concessions (“Solaris 1”) from the Ecuadorian state-owned mining company, Empresa Nacional Minera (“ENAMI EP”). These concessions comprise a land package of approximately 40,000 hectares adjacent to the Warintza project and the San Carlos-Panantza porphyry copper-molybdenum deposits in southeastern Ecuador.

 

The Company made an upfront payment to ENAMI EP of $250 on May 10, 2024 and, in order to exercise the option to acquire one or more of the 10 concessions, the Company is required to (i) incur exploration expenditures of $25,000 during the exploration phase of the concessions, as defined by the Ecuadorian Mining Law and (ii) pay the exercise price, the amount of which will be determined for each of the concessions that the Company elects to acquire by independent experts at the time of exercise. The term of the option agreement ends at the earlier of (i) the execution of the specific commercial agreement for each concession, which will stipulate a new term or (ii) four years from May 7, 2024 and is renewable with the agreement of the parties.

 

Page 8 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

(ii)ENAMI 2

 

On January 28, 2026, Solaris entered into a second option agreement with ENAMI EP to acquire up to a 100% interest in new exploration areas (“Solaris 2”) including an upfront payment of $250. The new areas expand Solaris’ footprint around Warintza by approximately 40,000 hectares and are interpreted to host significant copper mineralization, characterized by widespread potassic alteration typical of large copper porphyry systems. The award of the Solaris 2 areas follows a process established by ENAMI EP pursuant to which credentialed bidders submit nonbinding proposals for proposed minimum investments on the new areas. The award is subject to entry into a definitive framework agreement for the new areas, with the terms expected to include: (i) a proposed minimum exploration program of $25,000 over the four-year exploration phase; (ii) up to $1,750 subject to the achievement of certain milestones and (iii) the exclusive option to acquire the claims from ENAMI EP at a price to be determined by independent experts. The award follows the same commercial structure as the Solaris 1 earn-in arrangement.

 

d)Tamarugo

 

Tamarugo is a grass-roots copper porphyry target strategically located in northern Chile approximately 85 kilometres northeast of Copiapo and approximately 65 kilometres southwest of Codelco’s El Salvador Copper Mine. The Company owns a 100% interest in Tamarugo, which consists of claim blocks covering a total of approximately 7,600 hectares.

 

e)Other projects

 

Solaris has earn-in agreements on certain other projects including the Capricho and Paco Orco projects in Peru. The Capricho project is a 3,769 hectare copper-molybdenum-gold property. The Paco Orco project is a 88,900 hectare lead, zinc and silver property.

 

5.Reclamation provision

 

   June 30,
2026
   December 31,
2025
 
Balance, start of period  $4,227   $3,765 
Additions   568    535 
Accretion   30    44 
Settlement   (97)   (125)
Change in estimate   (105)   8 
Balance, end of period   4,623   $4,227 

 

The reclamation provision represents the estimated costs for restoration and rehabilitation for environmental disturbances at Warintza, estimated to be incurred at the end of the year 2027. The total undiscounted and uninflated estimated cash flows required to settle these obligations as at June 30, 2026 are $4,741 (December 31, 2025 – $4,322), which have been inflated at an average rate of 2.69% per annum (December 31, 2025 – 2.43%) and discounted at an average rate of 4.14% (December 31, 2025 – 3.55%).

 

Restricted cash of $571 (December 31, 2025 – $821) represents funds being used to collateralize guarantees issued to support environmental bonding requirements with respect to the environmental disturbances at Warintza. The decrease in the period represents a guarantee paid to ENAMI EP relating to the expansion of the Warintza district (Note 4).

 

Page 9 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

6.Property, plant and equipment

 

   Site
infra-structure
and equipment
   Construction
in progress
   Warehouse &
office
equipment &
furniture
   Right-of-use
assets
   Total 
Cost                    
As at December 31, 2024  $3,768   $1,235   $873   $1,002   $6,878 
Additions   429    1,689    162    317    2,597 
Transfers   2,434    (2,434)            
Disposals               (119)   (119)
As at December 31, 2025  $6,631   $490   $1,035   $1,200   $9,356 
Additions   67    41    403        511 
Transfers   8    (8)            
Disposals                    
As at June 30, 2026  $6,706   $523   $1,438   $1,200   $9,867 
                          
Accumulated depreciation                         
As at December 31, 2024  $1,842   $   $618   $552   $3,012 
Depreciation   1,049        143    238    1,430 
Disposals               (50)   (50)
As at December 31, 2025  $2,891   $   $761   $740   $4,392 
Depreciation   582        102    90    774 
Disposals                    
As at June 30, 2026  $3,473   $   $863   $830   $5,166 
                          
Net book value                         
As at December 31, 2025  $3,740   $490   $274   $460   $4,964 
As at June 30, 2026  $3,233   $523   $575   $370   $4,701 

 

7.ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

 

   June 30,
2026
   December 31,
2025
 
Trade payables  $1,292   $2,188 
Employee liabilities   101    735 
Accrued liabilities   4,945    4,698 
Other   159    154 
Balance, end of period  $6,497   $7,775 

 

Page 10 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

8.WARINTZA PROJECT FINANCING

 

On December 11, 2023, the Company entered into a financing package with OMF Fund IV SPV D LLC and OMF Fund IV SPV E LLC (collectively “OMF”), entities managed by Orion, to provide up to approximately $80,000 in aggregate funding for the advancement of the Warintza project in Ecuador. The financing package is comprised of a $60,000 Senior Loan, a subscription for $10,000 in common shares with a commitment for $10,000 in additional equity financing and a copper offtake agreement to purchase concentrate produced by the Warintza project. On December 19, 2023, the Company also signed a molybdenum offtake agreement with OMF.

 

a)Senior Loan – OMF Fund IV SPV D LLC

 

A first advance of $30,000 was received on December 21, 2023. An additional advance of $15,000 was received on September 13, 2024. A final advance of $15,000 was received on May 14, 2025.

 

   December 31, 2025 
Balance, start of period  $49,206 
Advances   15,000 
Transaction costs   (168)
Accrued interest   2,367 
Amortization of transaction cost   796 
Foreign Exchange and Other   56 
Loan and accrued interest repayment   (67,257)
Balance, end of period  $ 

 

Amounts drawn on the Senior Loan bear interest payable quarterly at the higher of (a) adjusted term secured overnight financing rate (“SOFR”) and (b) 2.00%, plus either 7.00% per annum in the case of interest paid in cash, or 7.50% in the case of interest that is accrued to the loan balance in accordance with the Senior Loan Facility agreement. At May 21, 2025, when fully repaid the Senior Loan was measured at amortized cost using an effective interest rate of 16.18%.

 

The Company had the option quarterly to elect to pay the interest in cash or accrue it to the principal amount of the Senior Loan and pay it upon maturity. The interest until repayment was accrued to the principal amount of the Senior Loan Facility.

 

On May 21, 2025, the Company entered into a financing agreement with Royal Gold and provided the funding required to repay the senior loan facility, as outlined in (c) below.

 

b)Offtake agreements

 

Under the terms of the offtake agreements, OMF will purchase the greater of (i) 20% of the copper and molybdenum concentrates produced from the Warintza project in each contract year, and (ii) the percentage of production of concentrates required to deliver a minimum 30,000 tonnes of copper and 1,500 tonnes of molybdenum in each contract year as well as the corresponding amount of gold and silver contained in the copper concentrate.

 

The offtake agreements will expire 20 years after the achievement of commercial production as defined in the agreements. If commercial production has not been achieved by December 31, 2027, then the term will extend by one year for each calendar year that commercial production has not been achieved, and if commercial production has not been achieved by December 31, 2032, then the term is extended for the duration of the mine life as defined in the offtake agreements.

 

Page 11 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

c)Funding package with Royal Gold

 

On May 21, 2025, the Company entered into a Funding Package with Royal Gold, a subsidiary of Royal Gold, Inc. for the Warintza project. The total cash consideration under the Financing Agreements is $200,000, comprising a Stream and a Royalty.

 

Royal Gold will pay Solaris a total cash consideration of $200,000 in three instalments as follows:

 

First tranche of $100,000 upon close of the transaction (funds received at closing which occurred concurrently with signing). $90,000 allocated to the Stream and $10,000 allocated to the Royalty as per the contracts and cash received;

 

Second tranche of $50,000 made available following the publication of the PFS and receipt of the technical approval of the EIA, received on April 14, 2026 and allocated to the Stream as per the contract; and

 

Third tranche of $50,000 made available on the first anniversary of the closing date and completion of all filings necessary to fully perfect Royal Gold’s security, which is ongoing. On completion this will be allocated to the Stream as per the contract.

 

Under the terms of the Stream, Royal Gold will receive gold deliveries equivalent to 20 ounces per 1 million pounds of copper produced from a defined area (RGLD Gold AOI). For each ounce of gold delivered under the Stream, Royal Gold will pay the Company a purchase price equal to 20% of spot price until 90,000 ounces have been delivered; and then 60% of spot price thereafter.

 

Under the terms of the Royalty, Royal Gold will receive a 0.3% net smelter return royalty on all metal production from a defined area (RGLD Gold Expanded AOI). The Royalty will increase annually by 0.0375%, up to a maximum of 0.6%, until the earlier of: the first delivery of gold under the Stream; or eight years following the closing date.

 

The Company’s obligations under the Stream and related documents are secured by (i) an all-asset British Columbia-law general security agreement made by the Company in favour of Royal Gold, and (ii) a British Columbia-law share pledge agreement made by the Company in favour of Royal Gold in respect of all of the shares of its direct wholly-owned subsidiary Lowell Copper Holdings Inc. (“Lowell Copper”). The obligations under the Stream are further guaranteed pursuant to a British Columbia-law guarantee from (i) Lowell Copper, which guaranteed obligations are secured by an all-asset British Columbia-law general security agreement made by Lowell Copper in favour of Royal Gold, and (ii) Lowell Mineral Exploration Ecuador S.A. (“Lowell Ecuador”). The obligations under the Stream will be further (i) secured pursuant to an Ecuador-law share pledge agreement to be granted by Lowell Copper in favour of Royal Gold in respect of all of the shares of its direct wholly-owned subsidiary Lowell Ecuador, and (ii) guaranteed pursuant to an Ecuador-law guarantee to be granted by Lowell Ecuador in favour of Royal Gold, which guaranteed obligations are to be secured by an Ecuador-law assignment of mining rights.

 

Solaris Resources AG’s (“Solaris Switzerland”) obligations under the Royalty and related documents are guaranteed (i) by a British Columbia-law limited recourse guarantee from the Company, which guaranteed obligations are to be secured by a Swiss-law share pledge agreement to be granted by the Company in respect of all of the shares of its direct wholly-owned subsidiary Solaris Switzerland. In addition to the above-noted guarantees and security, as further guarantees and security for the obligations under the Royalty, (i) Solaris Switzerland is to grant in favour of Royal Gold a Swiss-law security assignment of all receivables owed by the Company or Lowell Ecuador to Solaris Switzerland in respect of certain intercompany receivables and funding arrangements between the Company or Lowell Ecuador and Solaris Switzerland, (ii) the Company is to grant in favour of Royal Gold a Swiss-law share pledge agreement in respect of all of the shares of its direct wholly-owned subsidiary Solaris Switzerland. Additionally, the guarantees and security granted to Royal Gold in respect of the obligations under the Stream are to guarantee and/or secure the obligations under the Royalty.

 

Page 12 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

The Company recorded the Stream Upfront Payment as deferred revenue. The Company determines the amortization of deferred revenue on a per unit basis using the estimated total gold production over the life of the Warintza project.

 

Deferred revenue consists of: 1) initial Stream Upfront Payment received by the Company for future delivery of gold under the terms of the Stream, and 2) a significant financing component of the stream agreement resulting from the difference in the timing of the upfront payment received and the promised goods delivered. As such, the Company recognizes interest expense at each reporting period and will accrete the deferred revenue balance to recognize the significant financing element that is part of the Stream. The interest rate of 4.6% is determined based on the effective rate in the expected deliveries against the deferred revenue.

 

   June 30,
2026
   December 31,
2025
 
Balance, start of year  $93,674   $- 
Advances   50,000    90,000 
Interest expense   2,655    2,562 
Foreign exchange   (4,996)   1,112 
Balance, end of period  $141,333   $93,674 

 

9.Share capital

 

a)Common shares

 

Authorized: Unlimited common shares, with no par value

 

Issued and fully paid: 167,071,622 (December 31, 2025 – 166,896,936)

 

b)Share purchase options

 

For the three and six months ended June 30, 2026, the Company recognized a share-based compensation expense included in general and administrative expenditures of $1,479 and $3,109, respectively (three and six months ended June 30, 2025 – $1,008 and $2,080, respectively) and in exploration and evaluation assets of $266 and $709 respectively (2025 - $nil). The following table shows the change in the shares issuable for Arrangement options and Solaris options during the six months ended June 30, 2026 and 2025:

 

For the six months ended June 30,  2026   2025 
Balance, start of period   11,307,500    14,165,000 
Exercised   (362,500)   (2,441,373)
Forfeited/expired   (387,500)   (818,627)
Balance, end of period   10,557,500    10,905,000 

 

The weighted average exercise price per share of options exercised and forfeited during the six months ended June 30, 2026 was C$6.85 and C$7.06, respectively. The weighted average exercise price per share of options exercised and forfeited during the six months ended June 30, 2025 was C$0.80 and C$5.11, respectively. During the reporting period, option holders exercised a total of 362,500 stock options on a net-settlement (cashless) basis provided for under the company’s share plan rules resulting in the issuance of 174,686 shares.

 

Page 13 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

Solaris options

 

The following is a summary of the Company’s outstanding and exercisable options as at June 30, 2026:

 

Outstanding  Exercisable 
Grant date  Exercise price
(C$)
                 
August 9, 2022  $7.36    200,000    1.11    150,000    1.11 
February 24, 2023  $5.94    2,317,500    1.65    1,886,250    1.65 
February 23, 2024  $3.79    900,000    2.65    650,000    2.65 
September 18, 2024  $3.30    2,008,750    3.22    747,500    3.22 
October 4, 2024  $3.32    236,250    3.27    56,250    3.27 
November 19, 2024  $3.44    1,300,000    3.39    633,333    3.39 
December 13, 2024  $4.56    100,000    3.46    25,000    3.46 
December 20, 2024  $4.56    300,000    3.48    75,000    3.48 
December 27, 2024  $5.00    260,000    3.50         
December 10, 2025  $10.58    2,935,000    4.45         
   $6.13    10,557,500    3.17    4,223,333    2.39 

 

c)Restricted share units

 

Pursuant to the Arrangement, holders of Equinox restricted share units (“RSUs”) or RSUs with non-market-based performance vesting conditions (“pRSUs”) received RSUs or pRSUs of Solaris (“Arrangement RSUs”), which were proportionate to, and reflective of the terms of, their existing RSUs or pRSUs of Equinox. The holder of the Arrangement RSUs acquires one-tenth of a Solaris share upon vesting. During the six months ended June 30, 2026 and 2025, there were no RSUs redeemed under the provision of the Company’s RSU plan and as of June 30, 2026, 260,836 RSUs and pRSUs are outstanding with 26,085 of Solaris shares issuable.

 

10.Segmented information

 

The Company has determined that it has one operating segment, being the exploration of mineral properties.

 

Information about the Company’s non-current assets by jurisdiction is detailed below:

 

   June 30,
2026
   December 31,
2025
 
Mexico  $19,747   $19,747 
Ecuador   27,555    11,723 
Chile   6    6 
Peru   70    480 
Canada   397    111 
   $47,775   $32,067 

 

Information about the Company’s exploration expenditures by jurisdiction is detailed in Note 11.

 

Page 14 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

11.Exploration expenditures

 

The Company’s exploration expenditures by activity are as follows:

 

Following the completion of the PFS in November 2025, exploration and evaluation expenditure for the Warintza project has been capitalized (Note 4).

 

   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
Salaries, studies, geological consultants and support, and travel  $658   $3,419   $869   $9,003 
Site preparation, supplies, field and general   327    2,203    690    4,567 
Drilling and drilling related costs       69        1,041 
Assay and analysis       127        587 
Community relations, environmental and permitting   15    2,652    23    4,824 
Concession fees   168    41    379    500 
Reclamation provision       163        251 
Depreciation   27    176    44    394 
   $1,195   $8,850   $2,005   $21,167 

 

The Company’s exploration expenditures by jurisdiction are as follows:

 

   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
Ecuador  $177   $7,164   $227   $17,974 
Chile   19    14    53    36 
Mexico   323    42    381    96 
Peru1   676    1,630    1,344    3,061 
   $1,195   $8,850   $2,005   $21,167 

 

1For the three and six months ended June 30, 2025 exploration expenditure in Peru includes costs for shared technical services, performed in Lima.

 

12.General and administrative expenditures

 

   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
Share-based compensation  $1,479   $1,008   $3,109   $2,080 
Salaries and benefits   494    296    1,143    684 
Office and other   207    301    439    633 
Filing and regulatory fees   71    161    208    213 
Professional fees   364    3,746    991    4,014 
Marketing and travel   97    54    152    159 
   $2,712   $5,566   $6,042   $7,783 

 

Page 15 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

13.FINANCE COST

 

   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
Interest expense – deferred revenue  $1,574   $462   $2,655   $462 
Interest expense – loans and borrowings   -    1,514    -    3,020 
Other   29    30    53    72 
   $1,603   $2,006   $2,708   $3,554 

 

14.Financial instrument risk exposure and risk management

 

The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors approves and monitors the risk management process.

 

a)Credit risk

 

Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s financial assets.

 

The Company is primarily exposed to credit risk on its cash and cash equivalents, restricted cash and amounts receivable. Credit risk exposure is limited through maintaining its cash with high-credit quality financial institutions. The carrying value of these financial assets of $54,747 represents the maximum exposure to credit risk.

 

b)Liquidity risk

 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company ensures that there is sufficient capital in order to meet short term business requirements after taking into account the Company’s holdings of cash.

 

At June 30, 2026, the Company had contractual cash flow commitments as follows:

 

   < 1 Year   1-3 Years   4-5 Years   > 5 Years   Total 
Accounts payable and accrued liabilities   6,497                6,497 
Lease liabilities   190    255            445 
Other long-term liabilities               339    339 
Capitalized exploration expenses and other   795    189            984 
    7,482    444         339    8,265 

 

Page 16 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

c)Foreign currency risk

 

The Company is exposed to currency risk on transactions and balances in currencies other than the functional currency. At June 30, 2026, the Company had not entered into any contracts to manage foreign exchange risk.

 

The functional currency of the Company is the Canadian dollar, therefore, the Company is exposed to currency risk from the assets and liabilities denominated in the US dollar. As at June 30, 2026, cash of $ 49,970 (December 31, 2025 – $19,257), and accounts payable and accrued liabilities of $325 (December 31, 2025 - $88) are denominated in the US dollar. For the six months ended June 30, 2026, if the US dollar to Canadian dollar currency exchange rate changes by 5% with all other variables held constant, the impact on the Company’s net loss would be $2,541 (six months ended June 30, 2025 – $1,562).

 

The Company is also exposed to currency risk on financial assets and liabilities denominated in a range of currencies. However, the impact on such exposure is not currently material.

 

15.Fair value measurements

 

The carrying values of cash and cash equivalents, restricted cash and accounts payable and accrued liabilities approximate fair value due to their short terms to maturity. There were no transfers between fair value levels in the periods presented.

 

16.Related party transactions

 

Compensation of key management personnel

 

Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company, and comprises the Company’s Chairman, President and Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and Directors.

 

Key management compensation for the three and six months ended June 30, 2026 and 2025 is comprised of the following:

 

   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
Share-based compensation  $1,255   $458   $2,536   $941 
Salaries and benefits   342    290    685    642 
   $1,597   $748   $3,221   $1,583 

 

Page 17 of 18

 

 

Solaris Resources Inc.

Notes to the Condensed Consolidated Interim Financial Statements

For the three and six months ended June 30, 2026 and 2025

(Unaudited – In thousands of United States dollars, unless otherwise noted)

 

 

Related party arrangement

 

On January 2, 2020, the Company entered into an arrangement to share office space, equipment, personnel, consultants and various administrative services with other companies related by virtue of certain directors and management in common. These services have been provided through a management company equally owned by each company party to the arrangement. Costs incurred by the management company are allocated and funded by the shareholders of the management company based on time incurred and use of services. All of the parties have jointly entered into a rental agreement for office space. On January 1, 2025, the Company terminated the arrangement to share office space, equipment, personnel, consultants and various administrative services with other companies related by virtue of certain directors and management in common. The agreed settlement cost associated with the termination of the agreement was $104.

 

The Company was charged for the following with respect to these arrangements in the three and six months ended June 30, 2026 and 2025:

 

   Three months ended June 30,   Six months ended June 30, 
   2026   2025   2026   2025 
Office and other               104 
   $   $   $   $104 

 

17.COMMITMENTS

 

The Company is committed to payments related to exploration assets for community agreements related to the Warintza project of $795 in 2026 and $189 in 2027.

 

18.Supplemental cash flow information

 

For the six months ended June 30,  2026   2025 
Non-cash items:        
Unrealized foreign exchange on working capital items  $10   $ 
Capitalized movements on accounts payable and accrued liabilities  $1,007   $ 
Capitalized movements on reclamation obligation  $464   $ 
Capitalized depreciation  $731   $ 
Capitalized share-based compensation  $709   $ 
Right of use asset acquired  $-   $126 

 

Accrued interest expense of $2,367 was paid on May 21, 2025, along with the repayment of the senior loan facility.

 

Page 18 of 18