FULLTEXT DEL 2 AV 2

Kvartalsrapport Q4 2025

LUNDIN GOLD INC.
Consolidated Statements of Financial Position
(Expressed in thousands of U.S. Dollars)

The accompanying notes are an integral part of these consolidated financial statements.

December 31, December 31,
Note 2025 2024

ASSETS

Current assets
Cash and cash equivalents 19 $ 630,181 $ 349,200
Trade receivables and other current assets 4 260,101 233,555
Inventories 5 92,882 88,210
Advance royalty - 3,494
983,164 674,459
Non-current assets
VAT recoverable 4 18,591 24,287
Property, plant and equipment 6 664,622 695,703
Mineral properties 7 110,144 133,032
Deferred income tax assets 18 10,637 -

$ 1,787,158 $ 1,527,481
LIABILITIES

Current liabilities
Accounts payable and accrued liabilities 8 $ 159,667 $ 109,947
Income taxes payable 18 204,502 96,843
Other current liabilities 12 24,341 8,725
388,510 215,515

Non-current liabilities
Other non-current liabilities 12 25,893 3,457
Reclamation provisions 10 8,626 7,866
Deferred income tax liabilities 18 - 84,344

423,029 311,182

EQUITY
Share capital 11 1,057,225 1,035,399
Equity-settled share-based payment reserve 12 6,621 9,059
Accumulated other comprehensive loss (40,658) (40,747)
Retained earnings 340,941 212,588
1,364,129 1,216,299
$ 1,787,158 $ 1,527,481

Commitments (Note 24)

Approved by the Board of Directors

/s/ James A. Beck /s/ Ian W. Gibbs
James A. Beck Ian W. Gibbs

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LUNDIN GOLD INC.
Consolidated Statements of Income and Comprehensive Income
(Expressed in thousands of U.S. Dollars, except share and per share amounts)

The accompanying notes are an integral part of these consolidated financial statements.

Years Ended December 31,
Note 2025 2024

Revenues 13 $ 1,782,940 $ 1,193,050

Cost of goods sold
Operating expenses 14 318,743 283,527
Royalty expenses 102,819 69,158
Depletion and depreciation 135,041 136,979

556,603 489,664

Income from mining operations 1,226,337 703,386

Other expenses (income)
Exploration 15 59,523 41,168
Corporate administration 16 64,417 34,531
Finance expense 17 - 266,542
Finance income (22,863) (16,289)
Other expense (income) 1,718 (12,946)
Derivative gain 9 - (243,737)

102,795 69,269

Net income before tax 1,123,542 634,117

Income tax expense
Current income tax expense 18 426,372 192,107
Deferred income tax (recovery) expense 18 (94,981) 15,960
331,391 208,067

Net income for the year $ 792,151 $ 426,050

OTHER COMPREHENSIVE INCOME (LOSS)

Items that will not be reclassified to net income
Currency translation adjustment - (11,984)
Derivative loss related to the Company’s own credit risk 9 - (37,332)
Deferred income tax on accumulated other comprehensive
income

6,339
Other 89 275

Comprehensive income for the year $ 792,240 $ 383,348

Income per common share
Basic 11 $ 3.29 $ 1.78
Diluted 11 3.27 1.76

Weighted-average number of common shares outstanding
Basic 241,033,793 239,312,029
Diluted 242,510,385 241,426,325

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LUNDIN GOLD INC.
Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. Dollars, except number of common shares)

The accompanying notes are an integral part of these consolidated financial statements.

Equity-settled
Number of share-based Retained
common Share payment Other earnings
Note shares capital reserve reserves (deficit) Total

Balance, January 1, 2024 237,860,048 $ 1,008,932 $ 14,535 $ 1,955 $ (69,616) $ 955,806

Exercise of stock options 1,454,753 12,424 (3,425) - - 8,999
Vesting of share units 75,757 901 (3,025) - - (2,124)
Exercise of anti-dilution rights 11 804,340 13,142 - - - 13,142
Stock-based compensation 12 - - 4,280 - - 4,280
Reclassification of share units 12 - - (3,306) - - (3,306)
Other comprehensive loss - - - (42,702) - (42,702)
Net income for the year - - - - 426,050 426,050
Dividends paid - - - - (143,846) (143,846)

Balance, December 31, 2024 240,194,898 $ 1,035,399 $ 9,059 $ (40,747) $ 212,588 $ 1,216,299

Exercise of stock options 963,425 10,351 (2,576) - - 7,775
Vesting of share units 21,635 315 (315) - - -
Exercise of anti-dilution rights 11 252,592 11,160 - - - 11,160
Stock-based compensation 12 - - 1,094 - - 1,094
Reclassification of share units 12 - - (641) - - (641)
Other comprehensive income - - - 89 - 89
Net income for the year - - - - 792,151 792,151
Dividends paid - - - - (663,798) (663,798)

Balance, December 31, 2025 241,432,550 $ 1,057,225 $ 6,621 $ (40,658) $ 340,941 $ 1,364,129

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LUNDIN GOLD INC.
Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. Dollars)

The accompanying notes are an integral part of these consolidated financial statements.

` Years Ended December 31,
Note 2025 2024

OPERATING ACTIVITIES

Net income for the year $ 792,151 $ 426,050
Items not affecting cash:
Depletion and depreciation 135,131 137,003
Stock-based compensation 12 48,460 15,734
Derivative gain - (243,737)
Other expense (income) 1,302 (10,917)
Finance (income) expense (22,863) 250,253
Deferred income tax (recovery) expense (94,981) 15,960

859,200 590,346
Changes in non-cash working capital items:
Trade receivables and other current assets (9,597) (32,059)
Inventories (4,278) 2,419
Advance royalty 3,494 13,000
Accounts payable and accrued liabilities 54,629 27,999
Income taxes payable 107,659 48,355
Interest received 22,863 16,289
Share units settled in cash 12 (10,941) (3,959)

Net cash provided by operating activities 1,023,029 662,390

FINANCING ACTIVITIES

Repayments of long-term debt 9 - (101,106)
Interest paid 9 - (3,688)
Finance charge paid 9 - (260,990)
Proceeds from exercise of stock options 7,775 8,999
Proceeds from exercise of anti-dilution rights 11 11,160 13,142
Dividends paid (663,798) (143,846)

Net cash used for financing activities (644,863) (487,489)

INVESTING ACTIVITIES

Acquisition and development of property, plant and equipment (85,977) (82,398)
VAT paid on investing activities (11,253) (11,106)

Net cash used for investing activities (97,230) (93,504)

Effect of foreign exchange rate differences on cash 45 (222)

Net increase in cash and cash equivalents 280,981 81,175

Cash and cash equivalents, beginning of year 349,200 268,025

Cash and cash equivalents, end of year $ 630,181 $ 349,200

Supplemental cash information (Note 20)

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LUNDIN GOLD INC.
Notes to the consolidated financial statements as at December 31, 2025
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)

1. Nature of operations

Lundin Gold Inc. together with its subsidiaries (collectively referred to as “Lundin Gold” or the “Company”) is
focused on its Fruta del Norte gold operation and developing its portfolio of mineral concessions in Ecuador.

The common shares of the Company are listed for trading on the Toronto Stock Exchange (the “TSX”) and Nasdaq
Stockholm under the symbol “LUG” and the OTCQX Best Market under the symbol “LUGDF”. The Company was
originally incorporated in British Columbia and continued under the Canada Business Corporations Act in 2002.

The Company’s head office is located at Suite 2800, 1055 Dunsmuir Street, Vancouver, BC, and it has an office
in Quito, Ecuador.

2. Basis of preparation

These consolidated financial statements, including comparatives, have been prepared in accordance with
International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS
Accounting Standards”). The principal accounting policies applied in the preparation of these consolidated
financial statements are set out below and have been consistently applied to all the periods presented.

These consolidated financial statements were approved for issue by the Board of Directors on February 19, 2026.

The following entities are included in these consolidated financial statements:

Ordinary shares held
Country of December 31, December 31,
incorporation 2025 2024

Aurelian Resources Inc. Canada 100% 100%
Aurelian Resources Corporation Ltd. Canada 100% 100%
Aurelian Exploration Inc. Canada 100% 100%
Condor Finance Corp. Canada 100% 100%
Aurelian Ecuador S.A. Ecuador 100% 100%
AurelianEcuador Holding S.A. Ecuador 100% 100%
Ecoaurelian Agricola S.A. Ecuador 100% 100%
Aurelianmenor S.A. Ecuador 100% 100%
SurNorte S.A. Ecuador 100% 100%
SurNorte Ventures Pte. Ltd. Singapore 100% 100%
SurNorte Holdings I Pte. Ltd. Singapore 100% 100%

The proportion of the voting rights held directly by the parent company does not differ from the proportion of
ordinary shares held.

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3. Summary of material accounting policies

The Company’s material accounting policies are outlined below:

(a) Basis of consolidation

These consolidated financial statements incorporate the financial statements of the Company and the entities
controlled by the Company. Control exists when the Company is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability to affect those returns through its power over the
investee. The financial information of subsidiaries is included in the consolidated financial statements from
the date that control commences until the date that control ceases. All significant intercompany transactions
and balances have been eliminated. Accounting policies of subsidiaries have been changed where necessary
to ensure consistency with the policies adopted by the Company.

(b) Foreign currency translation

The presentation currency of these consolidated financial statements is U.S. dollars. The functional currency
of the Company’s significant subsidiary, Aurelian Ecuador S.A., and certain entities is U.S. dollars. Effective
January 1, 2025, the functional currency of other entities with a functional currency different from the
presentation currency was changed from Canadian dollars (“CAD”) to U.S. dollars in order to reflect its
financing structure.

Transactions and balances

In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recorded at the rates of exchange prevailing at the dates of the
transactions. At each statement of financial position date, monetary assets and liabilities are translated using
the period end foreign exchange rate. Non-monetary assets and liabilities are translated using the historical
rate on the date of the transaction. All gains and losses on translation of these foreign currency transactions
are included in the statement of income.

The preparation of consolidated financial statements requires management to make judgments, estimates
and assumptions that affect the application of policies and reported amounts of assets and liabilities, and
expenses. The estimates and associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and further periods if the review affects both current and future periods.

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3. Summary of material accounting policies (continued)

Significant assumptions about the future and other sources of estimation uncertainty that management has
made at the end of the reporting period that have a significant risk of resulting in a material adjustment to the
carrying amounts of assets and liabilities in the event that the actual results differ from assumptions made,
relate to, but are not limited to, the following:

Mineral reserves and resources – The Company estimates its mineral reserves and resources based on
information compiled and reviewed by qualified persons as defined in accordance with NI 43-101
requirements. The estimation of mineral reserves and resources requires judgment to interpret geological
data and metallurgical testing, design of appropriate mining methods, recovery methods and establishment of
a life of mine production schedule. The estimation of recoverable reserves is also based on assumptions
such as capital costs, operating costs and metal pricing. New geological data or changes in the above
assumptions may change the economic viability of reserves and may, ultimately, result in the reserves being
revised. Changes in the reserve or resource estimates may impact the valuation of property, plant and
equipment and mineral properties, the depletion and depreciation of property, plant and equipment and
mineral properties, utilization of tax losses and decommissioning and site restoration provisions.

Assessment of impairment indicators – Management applies significant judgement in assessing whether
indicators of impairment exist for a cash generating unit which would necessitate impairment testing. Internal
and external factors such as significant changes in the use of the asset, commodity prices, foreign exchange
rates, capital and production forecasts, mineral reserve and resource quantities, and discount rates are used
by management in determining whether there are any indicators. As at December 31, 2025, management did
not identify any impairment indicators on the Company’s mineral properties, property, plant, and equipment.

Deferred taxes – Deferred tax provisions are calculated by the Company while the actual amounts of income
tax expense are not final until tax returns are filed and accepted by the relevant authorities. Judgment is
required in assessing whether deferred tax assets and certain deferred tax liabilities are recognized on the
balance sheet, in interpreting applicable tax laws, and what tax rate is expected to be applied in the year when
the related temporary differences reverse. Deferred tax liabilities arising from temporary differences are
recognized unless the reversal of the temporary differences is not expected to occur in the foreseeable future
and can be controlled. Assumptions about the generation of future taxable profits and repatriation of retained
earnings depend on management’s estimates of future production and sales volumes, gold prices, reserves
and resources, operating costs, decommissioning and restoration costs, capital expenditures, dividends and
other capital management transactions. These estimates and judgments are subject to risk and uncertainty
and could result in an adjustment to the deferred tax provision and a corresponding credit or charge to profit.

Decommissioning and site restoration provisions – The Company has obligations for site restoration and
decommissioning related to Fruta del Norte. The future obligations for decommissioning and site restoration
activities are estimated by the Company using mine closure plans or other similar studies which outline the
requirements that will be carried out to meet the obligations. The provision for decommissioning and site
restoration is remeasured at the end of each reporting period for changes in estimates or circumstances.
Changes in estimates or circumstances include changes in legal or regulatory requirements, increased
obligations arising from additional mining and exploration activities, changes to cost estimates, and changes
to inflation and discount rates.

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3. Summary of material accounting policies (continued)

(d) Financial instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual
provisions of the instrument.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets
or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities measured at fair value through profit or loss are recognized
immediately in the statement of income.

Financial assets

The Company classifies its financial assets according to the following measurement categories:

i. Amortized cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost.

ii. Fair value through other comprehensive loss (“FVOCI”)

Assets that are held for both collection of contractual cash flows and future potential sale, where the
assets’ cash flows represent solely payments of principal and interest, are measured at fair value
through other comprehensive loss.

iii. Fair value through profit or loss (“FVPL”)

Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through
profit or loss.

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired
or have been transferred and the Company has transferred substantially all the risks and rewards of
ownership.

Impairment of financial assets

The Company assesses the expected credit losses associated with its financial assets carried at amortized
cost and FVOCI. The impairment methodology applied depends on whether there has been a significant
increase in credit risk.

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3. Summary of material accounting policies (continued)

Financial liabilities

The Company classifies its financial liabilities according to the following measurement categories:

i. FVPL

Liabilities that are (i) held for trading or (ii) designated as FVPL, are measured at FVPL.

A financial liability is classified as held for trading if:

 It has been incurred principally for the purpose of repurchasing it in the near term; or
 On initial recognition it is part of a portfolio of identified financial instruments that the
Company may manage together and has a recent actual pattern of short-term profit-taking;
or
 It is a derivative, except for a derivative that is a financial guarantee contract or a designated
and effective hedging instrument.

A financial liability that is not a financial liability held for trading may be designated as FVPL upon
initial recognition if:

 Such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise; or
 The financial liability forms part of a group of financial assets or liabilities or both, which is
managed and its performance is evaluated on a fair value basis; or
 It forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits
the entire combined contract to be designated as FVPL.

The amount of change in the fair value of the financial liability that is attributable to changes in the
credit risk of that liability is recognised in other comprehensive income. The remaining amount of
change in the fair value of liability is recognised in the statement of income. Changes in fair value
attributable to a financial liability’s credit risk that are recognised in other comprehensive income are
not subsequently reclassified to the statement of income; instead, they are transferred to retained
earnings upon derecognition of the financial liability.

ii. Amortized cost

Liabilities not measured at FVPL are measured subsequently at amortized cost using the effective
interest method.

Financial liabilities are derecognized when, and only when, the Company’s obligations are discharged,
cancelled or have expired.

(e) Cash and cash equivalents

Cash and cash equivalents include cash on hand and deposits held with banks, which are readily convertible
into known amounts of cash or mature within 90 days from the original dates of acquisition. Cash is classified
as a financial asset that is subsequently measured at amortized cost.

(f) Inventories

Ore stockpiles, in-circuit and finished metal inventory are valued at the lower of weighted average production
cost and net realizable value. Production costs include the cost of raw materials, direct labour, mine-site
overhead expenses and applicable depreciation and depletion of mineral properties, plant and equipment.
Net realizable value is calculated as the estimated price at the time of sale based on prevailing and long-term
metal prices less estimated future production costs to convert the inventories into saleable form and estimated
costs to sell.

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3. Summary of material accounting policies (continued)

Ore stockpile inventory represents ore on the surface that has been extracted from the mine and is available
for further processing. In-circuit inventory represents material in the mill circuit that is in the process of being
converted into a saleable form. Finished metal inventory represents doré and concentrate located at the mine,
in transit to and at port, and doré at refineries.

Materials and supplies inventories are valued at the lower of weighted average cost and net realizable value
with a provision recorded for obsolete or slow-moving inventory. Replacement costs of materials and spare
parts are generally used as the best estimate of net realizable value.

Any write-downs of inventory to net realizable value are recorded within cost of sales in the statement of
income. If there is a subsequent increase in the value of inventory, the previous write-downs to net realizable
value are reversed up to cost to the extent that the related inventory has not been sold.

(g) Property, plant and equipment

Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses. The
cost of an asset consists of its purchase price, any directly attributable costs of bringing the asset to its present
working condition and location for its intended use and an initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is located.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably.

Depreciation of a majority of asset classes is calculated using the straight-line method to allocate its cost less
its residual value over its estimated useful life. Mine and plant facilities are depleted using a unit of production
method over the total recoverable reserves. The estimated useful lives of property, plant and equipment are
as follows:

Buildings 20 years
Machinery and equipment 5 to 10 years
Vehicles 5 years
Furniture and office equipment 3 to 10 years
Mine and plant facilities based on total recoverable reserves on a unit of production basis

Depreciation methods and estimated useful lives and residual values are reviewed annually and when facts
and circumstances require a re-estimate.

The Company reviews the estimated total recoverable reserves annually and when events and circumstances
indicate that such a review should be made. Changes to estimated total recoverable reserves are accounted
for prospectively.

Expenditures on major maintenance or repairs, including the cost of the replacement of parts of assets and
overhaul costs or where an asset or part of an asset is replaced, is capitalized and the remaining carrying
amount of the item repaired, overhauled or replaced is derecognized when it is probable that future economic
benefits associated with the item will be available to the Company. All other costs are expensed as incurred.

An item of plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any related gain or loss is determined as the difference
between the net disposal proceeds or residual value, as applicable, and the carrying amount of the asset, and
is recognized in the statement of income.

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3. Summary of material accounting policies (continued)

(h) Exploration and evaluation (“E&E”) expenditures and mineral properties

Exploration and evaluation expenditures are those costs required to find a mineral property and determine
commercial viability. E&E costs include costs to establish an initial mineral resource and determine whether
Inferred mineral resources can be upgraded to Measured and Indicated mineral resources and whether
Measured and Indicated mineral resources can be converted to Proven and Probable reserves.

E&E costs consist of, but are not limited to:

 gathering exploration data through topographical and geological studies;
 exploratory drilling, trenching and sampling;
 determining the volume and grade of the resource;
 test work on geology, metallurgy, mining, geotechnical and environmental; and
 conducting engineering, marketing and financial studies.

Project costs in relation to these activities are expensed as incurred until such time that the project
demonstrates technical feasibility and commercial viability. Technical feasibility and commercial viability
generally coincides with the establishment of Proven and Probable mineral reserves. Upon demonstrating
technical feasibility and commercial viability, and subject to an impairment analysis, any such future costs,
including costs incurred to increase Proven and Probable reserves, are capitalized as development costs
within mineral properties.

After initial recognition, mineral properties are valued at cost less accumulated depletion and any impairment
losses. Costs associated with acquiring a mineral property are capitalized as incurred. Upon commencement
of commercial production, mineral properties are depleted based on total recoverable reserves on a unit of
production basis.

(i) Impairment of non-financial assets

Assets that are subject to amortization are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recorded
immediately if the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating
units).

Fair value is the price that would be received from selling an asset or cash generating unit in an orderly
transaction between market participants at the measurement date. Costs to sell are incremental costs directly
attributable to the disposal of an asset or cash generating unit. Fair value less costs to sell is measured by
estimating future after tax cash flows using estimated future prices, mineral reserves and resources and
operating and capital costs. All inputs used are those that an independent market participant would consider
appropriate.

Value in use is determined as the present value of the future cash flows expected to be derived from continuing
use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset or cash generating unit for which estimates of future cash flows
have not been adjusted.

Non-financial assets that have been impaired in prior periods are reviewed for possible reversal of the
impairment at each reporting date. When identified, a reversal of an impairment loss is recognized in the
statement of income immediately.

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3. Summary of material accounting policies (continued)

(j) Provisions

Asset retirement obligations

The Company recognizes a liability for an asset retirement obligation on long-lived assets when a present
legal or constructive obligation exists, as a result of past events, and the amount of the liability is reasonably
determinable. Asset retirement obligations are initially recognized and recorded as a liability based on
estimated future cash flows discounted at a risk-free rate. This is adjusted at each reporting period for changes
to factors including the expected amount of cash flows required to discharge the liability, the timing of such
cash flows and the risk-free discount rate. Corresponding amounts and adjustments are added to the carrying
value of the related long-lived asset and depleted to operations over the life of the related asset.

(k) Current and deferred income tax

Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other
comprehensive income or directly in equity. In this case the tax is also recognized in other comprehensive
income or directly in equity, respectively.

i. Current tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted on the statement of financial position date in the countries where the Company’s subsidiaries
operate and generate taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.

ii. Deferred tax

Deferred income tax is recognized on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. However, the
deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws)
that have been enacted or substantively enacted by the statement of financial position date and are
expected to apply when the related deferred income tax asset is realized or the deferred income tax
liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilized.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries,
except where the timing of the reversal of the temporary difference is controlled by the Company and
it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred income taxes assets and
liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or
different taxable entities where there is an intention to settle the balances on a net basis.

(l) Share capital

Common shares are classified as equity.

Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from the
proceeds.

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3. Summary of material accounting policies (continued)

(m) Stock-based compensation

The Company has a stock-based compensation plan, under which the entity receives services from
employees and non-employees as consideration for equity instruments (options and share units) of the
Company.

Stock options and share units granted to employees and non-employees are measured on the grant date.
The fair value of the employee and non-employee services received in exchange for the grant of the options
and share units are recognized as an expense. The total amount to be expensed is determined by reference
to the fair value of the stock options and share units granted and the vesting periods. The total expense is
recognized over the vesting period, which is the period over which all of the specified vesting conditions are
to be satisfied.

As share units are expected to be settled in cash, the liability is remeasured at fair value at each reporting
period and at the date of settlement, with changes in fair value recognized as stock‐based compensation
expense in the consolidated statements of income and comprehensive income in the period incurred.

The cash subscribed for the shares issued when the options are exercised is credited to share capital, net of
any directly attributable transaction costs.

(n) Earnings per share

Basic earnings per share is computed by dividing the net income available to common shareholders by the
weighted average number of shares outstanding during the reporting period. Diluted earnings per share is
computed similar to basic earnings per share except that the weighted average shares outstanding are
increased to include additional shares for the assumed exercise of stock options, if dilutive. The number of
additional shares is calculated by assuming that outstanding stock options were exercised and that the
proceeds from such exercises were used to acquire common stock at the average market price during the
reporting periods.

(o) Comprehensive income

Comprehensive income is the change in the Company’s net assets that results from transactions, events and
circumstances from sources other than the Company’s shareholders and includes items that would not
normally be included in net profit such as derivative gains (losses) related to the Company’s own credit risk
on designated financial liabilities measured at fair value through profit or loss. The Company’s comprehensive
income, components of other comprehensive income (loss) and cumulative translation adjustments are
presented in the consolidated statements of income and comprehensive income and the statements of
changes in equity.

(p) Revenue recognition

Revenues are presented based on the location where the sale originated and recognized when all of the
following criteria are met:
 Control has been transferred to the customer;
 Neither continuing managerial involvement to the degree usually associated with ownership, nor
effective control over the goods sold, has been retained;
 The amount of revenue can be reliably measured;
 It is probable that the economic benefits associated with the sale will flow to the Company; and
 The costs incurred or to be incurred in respect of the sale can be reliably measured.

These conditions are generally satisfied when title passes to the customer.

Doré sales

Revenues are recorded at the time of physical delivery, which is also the date that title of the gold and silver
passes to the customer. The sales price is fixed on the date of sale based on the spot price.

===== SIDA 64 =====

3. Summary of material accounting policies (continued)

Concentrate sales

Based on the terms of concentrate sales contracts with independent smelting companies, revenues are
recorded when the concentrate is loaded on vessels for shipment to the customers, which is also the date that
title passes to the customer. Sales prices are provisionally set at that time based on the then market prices.
Subsequent determination of final gold prices can range from one to four months after shipment depending
on the customer. For sales that are provisionally priced at year end, an estimate of the adjustment to revenues
and trade receivables is calculated based on the expected month when the final gold price is forecast to be
determined and the related forward price of gold at the end of the reporting period.

(q) New IFRS accounting standards and amendments

The following standards and interpretations, which may be applicable to the Company, have been issued but
are not yet effective as of December 31, 2025:

Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial
Instruments

In May 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent questions
arising in practice, and to include new requirements not only for financial institutions but also for corporate
entities. These amendments:
 clarify the date of recognition and derecognition of some financial assets and liabilities, with a new
exception for some financial liabilities settled through an electronic cash transfer system;
 clarify and add further guidance for assessing whether a financial asset meets the solely payments
of principal and interest (SPPI) criterion;
 add new disclosures for certain instruments with contractual terms that can change cash flows (such
as some financial instruments with features linked to the achievement of environment, social and
governance targets); and
 update the disclosures for equity instruments designated at FVOCI.

The amendments are effective for annual periods beginning on or after January 1, 2026 with early application
permitted, and are not expected to have a material impact on our financial statements.

IFRS 18 – Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure of Financial Statements (IFRS 18), which
replaces IAS 1, Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income
statement by requiring income and expenses to be presented into the three defined categories of operating,
investing and financing, and by specifying certain defined totals and subtotals. Where company-specific
measures related to the income statement are provided, IFRS 18 requires companies to disclose explanations
around these measures, which are referred to as management-defined performance measures. IFRS 18 also
provides additional guidance on principles of aggregation and disaggregation which apply to the primary
financial statements and the notes. IFRS 18 will not affect the recognition and measurement of items in the
financial statements, nor will it affect which items are classified in other comprehensive income and how these
items are classified.

The standard is effective for reporting periods beginning on or after January 1, 2027, including for interim
financial statements. Retrospective application is required and early application is permitted. The Company
is currently assessing the effect of this new standard on our financial statements.

===== SIDA 65 =====

4. Trade receivables and other current assets

December 31, December 31,
2025 2024

Trade receivables (a) $ 199,227 $ 155,948
VAT recoverable (b) 42,534 58,028
Prepaid expenses and others 18,340 19,579

$ 260,101 $ 233,555

(a) Trade receivables represent the value of concentrate and doré sold as at period end for which the funds
are not yet received. Consistent with industry standards, concentrate sales generally have relatively long
payment terms and are not settled in full until two to five months after export.

Concentrate sales are first recorded based on provisional prices. For sales that are provisionally priced as
at December 31, 2025, an adjustment is estimated and recorded using the forward gold price at year end
for the future month when the final gold price for each individual sale is expected to be determined. This
adjustment resulted in an increase of $33.8 million in trade receivables as of December 31, 2025 (December
31, 2024 - $5.1 million increase) reflecting rising gold prices during the period.

(b) Subject to submission of VAT claims and their acceptance by the applicable tax authorities, VAT paid in
Ecuador by the Company is being refunded or applied as a credit against taxes payable, based on the level
of export sales in any given month. Therefore, a portion of the VAT recoverable has been reclassified as
current assets based on the Company’s assessment of the estimated time for processing VAT claims during
the next twelve months.

5. Inventories

December 31, December 31,
2025 2024

Ore stockpile $ 4,529 $ 8,254
Gold in circuit 9,724 8,546
Doré and concentrate 20,416 18,687
Materials and supplies 58,213 52,723

$ 92,882 $ 88,210

As at December 31, 2025, the Company maintained a provision of $4.0 million (December 31, 2024 - $4.0 million)
associated with obsolete or slow-moving materials & supplies inventory.

===== SIDA 66 =====

6. Property, plant and equipment

Cost
Construction-
in-progress
Mine and
plant
facilities
Machinery
and
equipment Vehicles
Furniture
and office
equipment Total

Balance, January 1,
2024 $ 7,009 $ 986,741 $ 49,591 $ 24,440 $ 2,543 $ 1,070,324

Additions 38,363 47,629 1,086 423 2,730 90,231
Disposals and other - - (1,465) (1,561) - (3,026)
Reclassifications (6,128) 6,128 - - - -
Cumulative
translation adjustment - (1,057) - - (12) (1,069)

Balance, December
31, 2024 39,244 1,039,441 49,212 23,302 5,261 1,156,460

Additions 49,238 23,338 4,261 2,706 1,614 81,157
Disposals and other - (290) (271) (2,165) - (2,726)
Reclassifications (49,376) 49,376 - - - -

Balance, December
31, 2025 $ 39,106 $ 1,111,865 $ 53,202 $ 23,843 $ 6,875 $ 1,234,891

Accumulated
depletion and
depreciation
Construction-
in-progress
Mine and
plant
facilities
Machinery
and
equipment Vehicles
Furniture
and office
equipment Total

Balance, January 1,
2024 $ - $ 306,896 $ 24,669 $ 19,583 $ 280 $ 351,428

Depletion and
depreciation - 102,883 6,530 1,884 831 112,128
Disposals and other - (866) (1,561) - (2,427)
Cumulative translation
adjustment - (371) - - (1) (372)

Balance, December
31, 2024 - 409,408 30,333 19,906 1,110 460,757

Depletion and
depreciation - 101,835 6,588 1,678 1,775 111,876
Disposals and other - (22) (177) (2,165) - (2,364)

Balance, December
31, 2025 $ - $ 511,221 $ 36,744 $ 19,419 $ 2,885 $ 570,269

Net book value

As at December 31,
2024 $ 39,244 $ 630,033 $ 18,879 $ 3,396 $ 4,151 $ 695,703

As at December 31,
2025 $ 39,106 $ 600,644 $ 16,458 $ 4,424 $ 3,990 $ 664,622

===== SIDA 67 =====

7. Mineral properties

Cost Fruta del Norte

Balance, January 1, 2024 $ 160,028

Adjustments to restoration asset (1,677)
Depletion (25,319)

Balance, December 31, 2024 133,032

Adjustments to restoration asset -
Depletion (22,888)

Balance, December 31, 2025 $ 110,144

8. Accounts payable and accrued liabilities

December 31, December 31,
2025 2024

Accounts payable $ 15,201 $ 18,261
Accrued liabilities 55,907 52,051
Accrued profit sharing to employees and royalties 88,559 39,635

$ 159,667 $ 109,947

9. Long-term debt

The stream loan credit facility (the “Stream Facility”) and the offtake derivative liability (the “Offtake”) were
accounted for as financial liabilities at fair value through profit or loss until the closing of their buy out from Newmont
Corporation (“Newmont”) on June 27, 2024 (the “Closing Date”) following payment of the first tranche of the
purchase price of $180 million. The second and final tranche of $150 million was paid on September 30, 2024.
The total buy out price of $330 million was comprised of the remaining unamortized principal balance of $94.4
million and finance expense of $235.6 million. The derivative adjustments during the year ended December 31,
2024 reflect the reversal of accumulated derivative adjustments recorded on the Stream Facility since its inception
in 2017.

Until the Closing Date, the Company made scheduled monthly payments under the Stream Facility totaling $35.8
million of which $6.7 million was paid on account of principal; $3.7 million for accrued interest; and the remaining
$25.4 million as a finance expense. Following the buy out of the Stream Facility, the remaining balance of deferred
transaction costs were recognized within finance expense.

===== SIDA 68 =====

10. Reclamation provision

The Company’s reclamation provision relates to the rehabilitation of Fruta del Norte. The reclamation provision
has been calculated based on total estimated rehabilitation costs and discounted back to its present value. The
pre-tax discount rate and inflation rate are adjusted annually and reflect current market assessments.

At December 31, 2025, the Company applied a pre-tax discount rate of 9.4% (2024 – 9.7%) and an inflation rate
of 1.0% (2024 – 1.3%). The estimated total future liability for reclamation and remediation costs on an
undiscounted basis and adjusted for an estimate of future inflation is approximately $29.8 million (2024 – $30.7
million).

December 31, December 31,
2025 2024

Balance, beginning of year $ 7,866 $ 8,722

Change in discount rate, amount, and timing of cash flows - (1,677)
Accretion of liability component of obligations 760 821

Balance, end of year $ 8,626 $ 7,866

11. Share capital

Authorized:
 Unlimited number of common shares without par value
 Unlimited number of preference shares without par value

During the year ended December 31, 2025, the Company issued 252,592 common shares to Newmont
Corporation (“Newmont”), indirectly through its subsidiary Newcrest Canada Inc. (“Newcrest”), at a weighted
average price of CAD$44.18 per share for total proceeds of $11.2 million. During the year ended December 31,
2024, 804,340 common shares were issued to Newcrest at a weighted average price of CAD$22.40 per share for
total proceeds of $13.1 million. These issuances were completed in accordance with anti-dilution rights granted
from an initial investment into the Company by Newcrest, which was subsequently acquired by Newmont.

Income per common share

December 31, December 31,
2025 2024

Net income $ 792,151 $ 426,050

Basic weighted average number of common shares outstanding 241,033,793 239,312,029
Dilutive stock options 1,476,592 1,414,639
Dilutive share units - 699,657
Diluted weighted average number of common shares outstanding 242,510,385 241,426,325

Income per common share:
Basic $ 3.29 $ 1.78
Diluted 3.27 1.76

===== SIDA 69 =====

12. Stock-based compensation

Under an omnibus incentive plan (the “Omnibus Plan”) that allows for the reservation of a maximum 6% of the
common shares issued and outstanding for issuance at any given time, the Company may grant stock options,
restricted share units and deferred share units (collectively, the “Awards”). Subject to specific provisions under
the Omnibus Plan, the eligibility, vesting period, term, and number of Awards are granted at the discretion of the
Company’s board of directors.

Recipients of share units granted and outstanding on a dividend record date are entitled to receive an award of
additional share units equal to the cash dividends declared and paid on the Company’s common shares (“Dividend
Equivalent”). Dividend Equivalents are calculated in accordance with the Omnibus Plan based on the number of
share units held, the dividend per share and the weighted average trading price of the Company’s shares on the
TSX for the five days preceding the date the dividend was paid. These additional share units are subject to the
same terms and conditions as the underlying share units.

(a) Stock options

Stock options granted and outstanding under the Omnibus Plan have an expiry date of five years and vest
over a period of three or four years from date of grant. Stock options are exercisable into one common share
of the Company at the price specified in the terms of the option agreement.

During the year ended December 31, 2025, 148,200 stock options were granted to employees under the
Omnibus Plan. The fair value based method of accounting was applied to stock options on the date of grant
using the Black-Scholes option pricing model with the following weighted-average assumptions:

December 31, 2025 December 31, 2024

Risk-free interest rate 2.65% 3.16%
Expected stock price volatility 35.26% 33.29%
Expected life 4.0 years 3.7 years
Expected dividends (CAD) $1.23 $0.55

Weighted-average fair value per option granted (CAD) $9.65 $3.77

A continuity summary of the stock options granted and outstanding under the Omnibus Plan is presented
below:

Year ended Year ended December 31, 2025 December 31, 2024
Weighted
average
Weighted
average
Number of exercise price Number of exercise price
stock options (CAD) stock options (CAD)

Balance, beginning of period 2,378,949 $ 11.87 3,594,969 $ 10.18

Granted 148,200 40.49 350,900 16.07
Forfeited - - (112,167) 16.02
Exercised(1) (963,425) 11.41 (1,454,753) 8.40

Balance outstanding, end of period 1,563,724 $ 14.87 2,378,949 $ 11.87
Balance exercisable, end of period 1,032,230 $ 11.14 1,523,442 $ 10.99
(1) The weighted average share price on the exercise date for the stock options exercised during the year ended December
31, 2025 was CAD$55.08 (2024 - CAD$19.65).

===== SIDA 70 =====

12. Stock-based compensation (continued)

The following table summarizes outstanding options at December 31, 2025:

Outstanding options
Range of
exercise prices
(CAD)
Number of
options
outstanding
Weighted average
remaining
contractual life
(years)
Weighted average
exercise price
(CAD)

$ 9.79 to 10.72 723,762 0.73 $ 10.05
$ 10.73 to 29.53 689,149 2.44 14.36
$ 29.54 to 98.65 150,813 4.17 40.30

1,563,724 1.82 $ 14.87

The equity-settled share-based payment reserve includes the fair value of employee options as measured at
grant date and amortized over the period during which the employees become unconditionally entitled to the
options. During the year ended December 31, 2025, the Company recorded stock-based compensation
expense of $1.0 million (2024 – $1.2 million) related to options.

(b) Share units

Under the Omnibus Plan, the Company has granted restricted share units and deferred share units
(collectively, “Share Units”) to eligible employees and non-employee directors as presented below:

Restricted share units
with performance
criteria

Restricted
share units Deferred
share units

Balance at January 1, 2024 562,852 175,201 13,467

Granted 240,871 132,180 30,934
Granted – Dividend Equivalent 16,564 6,126 1,194
Forfeited (56,876) (15,823) -
Settled (266,949) (122,704) -

Balance at December 31, 2024 496,462 174,980 45,595

Granted 235,632 51,260 15,031
Granted – Dividend Equivalent 17,782 8,491 2,746
Forfeited - (793) -
Settled (371,097) (54,328) -

Balance at December 31, 2025 378,779 179,610 63,372

Share Units can be settled in common share or cash at the discretion of the Company’s board of directors and
were initially expected to be settled in shares. Starting December 31, 2024, to the extent permitted by the
Company’s omnibus incentive plan, Share Units are expected to generally settle in cash in future period and
reclassified as financial liabilities measured at fair value. As at December 31, 2025, all Share Units are
accounted for as cash-settled stock-based payments.

===== SIDA 71 =====

12. Stock-based compensation (continued)

Restricted share units with performance criteria (“PSUs”)

PSUs are granted to eligible employees and vest three years from date of grant subject to continued
employment and certain performance conditions being met. The number of PSUs that vest are adjusted using
a multiplier that is based on total shareholder return by the Company’s shares over the three-year period
relative to a peer group as defined by the Company’s board of directors. Each vested PSU entitles the
recipient to a payment of one common share or cash at the discretion of the Company’s board of directors.

The fair value of PSUs was measured at each reporting date using Monte Carlo simulation and resulted in a
weighted-average fair value per unit of CAD$182.50 as at December 31, 2025 (2024 – CAD$32.09).

During the year ended December 31, 2025, the Company recorded stock-based compensation expense of
$34.8 million (2024 – $10.1 million) relating to PSUs and a liability of $36.1 million as at December 31, 2025
(2024 – $10.7 million).

Restricted share units without performance criteria (“RSUs”)

RSUs are granted to eligible employees and vest one to three years from date of grant subject to continued
employment. Each vested RSU entitles the recipient to a payment of one common share or cash at the
discretion of the Company’s board of directors.

The fair value of RSUs was measured at each reporting period using the 5-day volume weighted average
share price and resulted in a weighted-average fair value per unit of CAD$116.45 as at December 31, 2025
(2024 – CAD$31.09).

During the year ended December 31, 2025, the Company recorded stock-based compensation expense of
$8.0 million (2024 – $2.3 million) relating to RSUs and a liability of $8.7 million as at December 31, 2025 (2024
– $1.5 million)

Deferred share units (“DSUs”)

DSUs are granted to non-employee directors and do not vest until the end of service as a director of the
Company. Each vested DSU entitles the recipient to a payment of one common share or cash at the discretion
of the Company’s board of directors. Given DSUs are expected to generally settle in cash in future periods,
outstanding DSUs were reclassified as financial liabilities measured at fair value starting June 30, 2025.

Using the 5-day volume weighted average share price, fair value of DSUs was measured as at the December
31, 2025 with a weighted-average fair value per unit of CAD$116.45. For the year ended December 31, 2024,
the fair value of DSUs was measured on the date of grant with a weighted-average fair value per unit of
CAD$18.86.

During the year ended December 31, 2025, the Company recorded stock-based compensation expense of
$4.7 million (2024 – $0.5 million) relating to DSUs. The total liability of DSUs as at December 31, 2025 was
$5.4 million (2024 - $nil).

===== SIDA 72 =====

13. Revenues

December 31,
2025
December 31,
2024

Doré sales (1) $ 597,836 $ 423,550
Concentrate sales 1,100,448 772,200
Gain (loss) on provisionally priced trade
receivables
84,656 (2,700)

$ 1,782,940 $ 1,193,050

(1) During the year ended December 31, 2024, $177.9 million of doré sales were sold under the Offtake to Newmont
until the Closing Date of the Stream Facility and Offtake buy out.

14. Operating expenses

December 31,
2025
December 31,
2024

Direct production costs $ 250,254 $ 244,373
Transportation 27,762 21,372
Direct sales costs, including employee portion of profit sharing 39,514 19,408
Change in inventories 1,213 (1,626)

$ 318,743 $ 283,527

15. Exploration

December 31,
2025
December 31,
2024

Catering and camp expenses $ 3,720 $ 2,891
Concessions and land 1,103 699
Mining supervision & control fees (1) 3,231 -
Development 871 1,954
Drilling 24,659 17,667
Environmental 1,798 1,477
Geophysics 1,775 2,006
Salaries and benefits 8,031 6,204
Sampling and supplies 11,450 7,027
Study and evaluation 1,290 -
Others 1,595 1,243

$ 59,523 $ 41,168

(1) Effective June 2025, the Government of Ecuador introduced the new mining supervision and control fee which
is intended to fund oversight activities carried out by the Mining Regulation and Control Agency.

===== SIDA 73 =====

16. Administration

December 31,
2025
December 31,
2024

Corporate social responsibility $ 2,063 $ 2,119
Investor relations 456 285
Office and general 4,162 3,896
Professional fees 2,370 2,284
Regulatory and transfer agent 740 469
Salaries and benefits 5,163 6,739
Special government levy (1) - 1,913
Stock-based compensation 48,460 15,734
Travel 1,003 1,092

$ 64,417 $ 34,531

(1) In March 2024, the Government of Ecuador introduced a special one-time temporary security contribution to
strengthen security amid rising violence in the country.

17. Related party transactions

(a) Key management compensation

Key management includes executive officers and directors of the Company. The compensation paid or
payable to key management for employee services, including amounts paid to certain executive officers
following the end of their employment, during the year ended December 31 is shown below.

December 31, December 31,
2025 2024

Salaries, bonuses and benefits $ 5,240 $ 5,226
Stock-based compensation 33,971 4,076

$ 39,211 $ 9,302

(b) Other related party transactions

During the year ended December 31, 2025, the Company incurred $0.9 million (2024 – $1.3 million), primarily
relating to office rental and related services provided by a company associated with a director of the Company.
In addition, the Company entered into transactions with its largest shareholder, Newmont, during the years
ended December 31, 2025 and December 31, 2024 as disclosed in Note 9, Note 11, and Note 13.

18. Income taxes

(a) Income tax expense

Current income tax expense is generated from net income for tax purposes in Ecuador relating to operations
at Fruta del Norte. In addition to corporate income taxes in Ecuador which are levied at a rate of 22% and
dividend withholding taxes levied at a rate of 5% related to the anticipated portion of net income distributed
from Ecuador, included in current income tax expense is the portion of profit sharing payable to the
Government of Ecuador which is calculated at a rate of 12% of net income for tax purposes. The employee
portion of profit sharing, calculated at a rate of 3% of net income for tax purposes, is considered an
employment benefit and included in operating costs.

===== SIDA 74 =====

18. Income taxes (continued)

The rates used in Ecuador differ from the amount that would result from applying the Canadian federal and
provincial income tax rates to net income before tax. These differences result from the following items:

December 31,
2025 2024

Net income before tax $ 1,123,542 $ 634,117

Canadian federal and provincial income tax rates 27.00% 27.00%

Expected income tax expense based on the above rates 303,356 171,212

Increase (decrease) due to:
Differences in foreign tax rates (49,339) (4,731)
Non-deductible costs 19,286 7,130
Withholding taxes (current and deferred) 38,930 31,681
Losses and temporary differences for which an income tax asset has
not been recognized

14,945

3,951
Non-taxable portion of capital gains - (1,176)
Global minimum top-up tax 4,213 -

Income tax expense $ 331,391 $ 208,067

(b) Deferred income taxes

Deferred tax assets (liabilities) have been recognized on the statement of financial position as follows:

December 31,
2025 2024

Inventories $ (5,646) $ (3,697)
Mineral properties and property, plant and equipment (99,789) (137,070)
Long-term debt 105,444 65,018
Trade receivables and other current assets 18,211 10,475
Accounts payable and accrued liabilities 3,017 2,430
Other (10,600) (21,500)

$ 10,637 $ (84,344)

Deductible temporary differences for which no deferred taxes assets have been recognized are as follows:

December 31,
2025 2024

Non-capital losses - Canada $ 27,760 $ 24,205
Net-capital losses - Canada - 5,192
Mineral properties and property, plant and equipment 66,860 66,866
Other 61,008 13,045

$ 155,628 $ 109,308

===== SIDA 75 =====

18. Income taxes (continued)

As at December 31, 2025, the Company has the following tax losses which may be used to reduce future
taxable income:

Year of expiry Canada

2026 $ -
2027 -
2028 -
2029 -
2030 and onwards 27,760

Total $ 27,760

Effective January 1, 2025, the Company became subject to the OECD Pillar Two model rules as two out of
the last four year’s revenues exceeded €750 million. Pillar Two legislation was enacted in Canada effective
January 1, 2024 and Singapore effective January 1, 2025. Under the legislation, the Company is liable to pay
a top-up tax for the difference between the GloBE effective tax rate for each jurisdiction and the 15% minimum
rate. The Company has effective tax rates that exceed 15% in all jurisdictions in which it operates, except for
one jurisdiction. The Company has performed an analysis of the country-by-country reporting safe harbour
test and concluded the safe harbour does not apply in 2025.

19. Supplemental cash information

Cash and cash equivalents are comprised of the following:

December 31, December 31,
2025 2024

Cash $ 410,068 $ 224,783
Short-term investments 220,113 124,417

$ 630,181 $ 349,200

Other supplemental cash information:

December 31, December 31,
2025 2024

Income taxes paid (1) $ 312,637 $ 136,913

Change in accounts payable and accrued
liabilities related to:

Acquisition of property, plant and equipment (4,820) 7,833

(1) Effective January 1, 2024, the Company is subject to monthly income tax instalment payments in Ecuador using
a rate published by the tax authorities in Ecuador based on the previous year’s tax return. During the year ended
December 31, 2025, in addition to monthly corporate income tax instalment payments, the Company remitted
$70.6 million to the Government of Ecuador as a partial payment against its annual income taxes due in April 2026.

===== SIDA 76 =====

20. Segmented information

Operating segments are components of an entity that engage in business activities from which they incur expenses
and whose operating results are regularly reviewed by a chief operating decision maker to make resource
allocation decisions and to assess performance. The Chief Executive Officer is responsible for allocating
resources and reviewing operating results of each operating segment on a periodic basis.

The Company’s primary business activity is the Fruta del Norte operating mine in Ecuador where all revenues
originate. Materially all of the Company’s non-current assets and non-current liabilities relate to Fruta del Norte.
In addition, the Company conducts exploration activities and maintains a number of concessions in Ecuador
outside of Fruta del Norte.

The following are summaries of the Company’s current and non-current assets, current and non-current liabilities,
and income from mining operations:

Fruta del
Norte
Exploration
activities
Corporate
and other Total

As at December 31, 2025

Current assets $ 640,673 $ 585 $ 341,906 $ 983,164
Non-current assets 803,373 90 531 803,994

Total assets 1,444,046 675 342,437 1,787,158

Current liabilities 354,265 4,798 29,447 388,510
Non-current liabilities 8,626 - 25,893 34,519

Total liabilities 362,891 4,798 55,340 423,029

For the year ended December 31, 2025

Revenues 1,782,940 - - 1,782,940
Operating expenses (318,743) - - (318,743)
Royalty expenses (102,819) - - (102,819)
Depletion and depreciation (135,041) - - (135,041)

Income from mining operations 1,226,337 - - 1,226,337

As at December 31, 2024

Current assets $ 446,585 $ 166 $ 227,708 $ 674,459
Non-current assets 852,348 78 596 853,022

Total assets 1,298,933 244 228,304 1,527,481

Current liabilities 204,667 1,478 9,370 215,515
Non-current liabilities 70,710 - 24,957 95,667

Total liabilities 275,377 1,478 34,327 311,182

For the year ended December 31, 2024

Revenues 1,193,050 - - 1,193,050
Operating expenses (283,527) - - (283,527)
Royalty expenses (69,158) - - (69,158)
Depletion and depreciation (136,979) - - (136,979)

Income from mining operations 703,386 - - 703,386

===== SIDA 77 =====

20. Segmented information (continued)

The Company generated 76% of its revenue from four major customers during the year ended December 31, 2025
(2024 – 69% from four major customers). However, the Company is not economically dependent on these customers
as gold and silver can be sold to smelters and through numerous banks and commodity market traders worldwide.

21. Financial instruments and risk management

(a) Fair value of financial instruments

The Company’s financial instruments include cash, cash equivalents and certain receivables, which are
categorized as financial assets at amortized cost, and accounts payable and accrued liabilities, which are
categorized as financial liabilities at amortized cost. The fair value of these financial instruments approximates
their carrying values due to the short-term nature of these instruments. Further, provisionally priced trade
receivables of $199.2 million (December 31, 2024 - $156.0 million) are measured at fair value using quoted
forward market prices (Fair value hierarchy level 2).

Fair value measurements and hierarchy

IFRS Accounting Standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities and the lower priority to unobservable inputs. The three levels of the
fair value hierarchy are as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities that the reporting entity has
the ability to access at the measurement date.

Level 2: Inputs that are observable, either directly or indirectly, for substantially the full term of the
asset or liability.

Level 3: Inputs that are both significant to the fair value measurement and unobservable.

(b) Financial risk management

The Company’s financial instruments are exposed to a variety of financial risks by virtue of its activities or by
their nature.

Currency risk

Lundin Gold is a Canadian company, with foreign operations in Ecuador. Revenues generated and
expenditures incurred in Ecuador are primarily denominated in U.S. dollars. However, equity capital, if
needed, is typically raised in Canadian dollars. As such, the Company is subject to risk due to fluctuations in
the exchange rates of foreign currencies. Although the Company does not enter into derivative financial
instruments to manage its exposure, the Company tries to manage this risk by maintaining most of its cash in
U.S. dollars. Based on this exposure, a 2% change in the U.S. dollar exchange rate would give rise to an
increase or decrease of approximately $1.0 million in net income for the year.

Credit risk

Credit risk is the risk of a financial loss to the Company if a counterparty to a financial instrument fails to meet
its contractual obligations. The majority of the Company’s cash is held in large financial institutions with a
high investment grade rating. The Company is also subject to credit risk associated with its trade receivables.
The Company manages this risk by only selling to reputable customers with strong financial statements.

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21. Financial instruments and risk management (continued)

Concentration of credit risk

Cash and cash equivalents are held with high quality financial institutions. Substantially all of the Company’s
cash and cash equivalents held with financial institutions exceed government-insured limits. The Company
has established a treasury policy that seeks to minimize its credit risk by entering into transactions with
investment grade creditworthy and reputable financial institutions and by monitoring the credit standing of
those financial institutions. The Company seeks to limit the amount of exposure with any one counterparty in
accordance with its established treasury policy.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its obligations as they become due. Cash
flow forecasting is performed regularly to monitor the Company’s liquidity requirements to ensure it has
sufficient cash to always meet its operational needs. In addition, management is actively involved in the
review, planning and approval of significant expenditures and commitments.

The maturities of the Company’s current liabilities are due to be settled within one year, and other non-current
liabilities are due to be settled within two to three years. As at December 31, 2025, the Company’s cash and
cash equivalent balances exceeded the total liabilities.

Commodity price risk

The Company is subject to commodity price risk from fluctuations in the market prices of gold and silver.
Commodity price risks are affected by many factors that are outside the Company’s control including global
or regional consumption patterns, the supply of and demand for metals, speculative activities, the availability
and costs of substitutes, inflation, and political and economic conditions. The Company has not hedged the
price of any commodity at this time.

The fair value of a portion of the Company’s trade receivables are impacted by fluctuations of commodity
prices. Based on this exposure, an increase or decrease of 5% in gold and silver prices would increase or
decrease the fair value of the Company’s trade receivables by $8.9 million.

22. Capital risk management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern and operate Fruta del Norte and to maintain a flexible capital structure which optimizes the cost of capital
at an acceptable risk while continuing to provide a return to shareholders through dividends.

In the management of capital, the Company considers items included in shareholders’ equity. The Company
manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk
characteristics of the Company’s assets. In order to maintain or adjust the capital structure, the Company may
choose to attempt to issue new shares or debt instruments, acquire or dispose of assets, or to bring in joint venture
partners.

In order to facilitate the management of its capital requirements, the Company prepares annual budgets that are
updated as necessary depending on various factors, including successful capital deployment and general industry
conditions. The annual and updated budgets are approved by the Board of Directors.

===== SIDA 79 =====

23. Commitments

Significant capital and other expenditures contracted as at December 31, 2025 but not recognized as liabilities are
as follows:

Capital
expenditures

Other

2026 $ 25,785 $ 476
2027 - 476
2028 onward - 5,319

Total $ 25,785 $ 6,271

The Company’s sales are subject to a 5% net smelter royalty payable to the Government of Ecuador and a 1% net
revenue royalty payable to third parties.

===== SIDA 80 =====

Corporate Information

BOARD OF DIRECTORS
Jack Lundin, Chairman
Vancouver, Canada
Carmel Daniele
London, United Kingdom
Gillian Davidson
Edinburgh, United Kingdom
Ian Gibbs
Vancouver, Canada
Melissa Harmon
Denver, USA
Ashley Heppenstall
London, United Kingdom
Jamie Beck
Vancouver, Canada
Scott Langley
Toronto, Canada
Angelina Mehta
Montreal, Canada

OFFICERS
Jamie Beck
President & Chief Executive Officer
Chester See Chief Financial Officer Terry Smith Chief Operating Officer Sheila Colman
Vice President, Legal and Sustainability
Andre Oliveira Vice President, Exploration Brendan Creaney Vice President, Corporate Development and Investor Relations
OFFICES
CORPORATE HEAD OFFICE
Lundin Gold Inc.
Four Bentall Centre
1055 Dunsmuir Street, Suite 2800
Vancouver, BC V7X 1L2
Telephone: 604-689-7842
Toll Free: 1-888-689-7842
Facsimile: 604-689-4250

REGIONAL HEAD OFFICE
Aurelian Ecuador S.A.,
a subsidiary of Lundin Gold Inc.
Av. Amazonas N37-29 y UNP Edificio
Eurocenter, Piso 5
Quito, Pichincha
Ecuador
Telephone: 593-2-299-6400
COMMUNITY OFFICE
Calle 1ro de Mayo y 12 de Febrero,
esquina
Los Encuentros, Zamora-Chinchipe,
Ecuador

STOCK EXCHANGE
LISTINGS
The Toronto Stock Exchange
Trading Symbol: LUG
Nasdaq Stockholm
Trading Symbol: LUG

SHARE REGISTRAR AND
TRANSFER AGENT
Computershare Investor Services Inc.
510 Burrard Street, 3rd Floor
Vancouver, BC V6C 3B9
Telephone: 1-800-564-6253

AUDITOR
PricewaterhouseCoopers LLP
250 Howe St, Suite 700
Vancouver, BC V6C 3S7
Telephone: 604-806-7000

ADDITIONAL INFORMATION
Further information about Lundin Gold
is available by contacting:
Brendan Creaney
Vice President, Corporate
Development and Investor
Relations
Telephone: 604-806-3089
Toll Free: 1-888-689-7842
info@lundingold.com
Lundin Gold Ecuador

===== SIDA 81 =====

Four Bentall Centre
1055 Dunsmuir Street, Suite 2800
Vancouver, BC V7X 1L2
Canada
Av. Amazonas N37-29 y UNP Edificio
Eurocenter, Piso 5
Quito, Pichincha, Ecuador

Telephone: 604-689-7842
Toll Free: 1-888-689-7842
Telephone: 593-2-299-6400

info@lundingold.com www.lundingold.com

@LundinGold @LundinGoldEC Lundin Gold

Lundin Gold

Lundin Gold Ecuador