Financial Analysis

NOTE 15 COMMITMENTS AND CONTINGENCIES Legal Update From time to time, the Company is involved in legal matters in the ordinary course of its business. The Company intends to defend itself vigorously against any such claims. It is the Companys policy to accrue for amounts related to lawsuits brought against it if it is probable that a liability has been incurred and an amount can be reasonably estimated. Although the outcome of such matters cannot be predicted with certainty and no assurances can be given with respect to such matters, the Company believes that the outcome of those ordinary course matters in which it is currently involved will not have a materially adverse effect on its results of operations, liquidity, or financial position. Concession Taxes The Company is required to pay taxes in Mexico in order to maintain mining concessions owned by DynaMexico. Additionally, the Company is required to incur a minimum amount of expenditures each year for all concessions held. The minimum expenditures are calculated based upon the land area, as well as the age of the concessions. Amounts spent in excess of the minimum may be carried forward indefinitely over the life of the concessions and are adjusted annually for inflation. Based on Managements recent business activities and current and forward plans and considering expenditures on mining concessions from 2002-2017 and continuing expenditures in current and forward activities, the Company does not anticipate that DynaMexico …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 13 STOCK BASED COMPENSATION On December 28, 2022, the Company issued 1,500,000 shares of restricted common stock to certain key employees and consultants. The shares were 25 % vested at issuance and vest an additional 25 % on December 28, 2023, 2024, and 2025. The shares were valued at the closing stock price of $ 2.35 on the date of issuance and accounted for under ASC 718. Stock compensation expense for the years ended December 31, 2025 and 2024 was $ 1,249,459 and $ 1,219,062 , respectively, representing the 25 % vested portion of the total stock value. In addition the 2024 expenses included accelerated vesting of $ 327,813 due to terminations. In addition to the accelerated vesting 112,500 shares under these awards were cancelled in December 2024. As of December 31, 2025, deferred compensation totaling $ nil remained unvested. On June 3, 2024, Mr. Rohan Hazelton was appointed as the Companys new Chief Executive Officer. In connection with Mr. Hazeltons appointment, the Company entered into an Employment Agreement with Mr. Hazelton that included a signing bonus of 750,000 stock options as detailed below, 500,000 Restricted Stock Units vesting one-third per year on each of the first three anniversaries of the grant date, the terms of which are to be determined by the Compensation Committee and 500,000 Deferred Stock Units, the terms and metrics of which are to be determined by the Compensation Committee. On July 22, 2024, Mr. Alonso Sotomayor was appointed as the Compa …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 16 FAIR VALUE OF FINANCIAL INSTRUMENTS The ASC guidance for fair value measurements and disclosure establishes 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 (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs Quoted prices for identical instruments in active markets. Level 2 Inputs Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 Inputs Instruments with primarily unobservable value drivers. As of December 31, 2025 and 2024, the Companys financial instruments were carried at fair value and were measured at fair value using Level 3 inputs, with the exception of cash, accounts receivable, foreign tax receivable, notes payable, mining concession duties payable, which are measured at amortized cost. A description of the valuation of the Level 3 inputs is discussed in Note 8. Quoted Prices in Active Markets For Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Measurement at December 31, 2025: (Level 1) (Level 2) (Level 3) Liabilit …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 14 INCOME TAXES FASB ASC 740-10, Income Taxes, mandates the asset and liability approach to determine the income tax provision or benefit. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Income tax receivables and liabilities and deferred tax assets and liabilities are recognized based on the amounts that more likely than not will be sustained upon ultimate settlement with taxing authorities. Developing the provision for income taxes and analysis of uncertain tax positions requires significant judgment and knowledge of federal and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. The Company assess the realization of our deferred tax assets to determine whether an income tax valuation allowance is required. Based on all available evidence, both positive and negative, and the weight of that evidence to the extent such evidence can be objectively verified, we determine whether it is more likely than not that all or a portion of the deferred tax assets will be realized. The Company considers many factors when evaluating our uncertain tax positions, and such judgments are subject to periodic review. Tax benefits associated with uncertain tax positions a …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncements In the fourth quarter of 2024 , the Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 enhances reportable segment disclosures by requiring disclosures such as significant segment expenses, information on the CODM and disclosures for entities with a single reportable segment. Additionally, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. The adoption of ASU 2023-07 did not have an impact on the consolidated results of operations, financial condition or statement of cash flows. Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 19 RELATED PARTY TRANSACTIONS Management Bonuses On March 28, 2025, the Compensation Committee approved bonus awards to the management team in cash and common stock. The stock portion is based on the closing price of $ 0.91 per share on March 28, 2025. Of these awards $ 70,000 in cash and $ 125,000 in stock (equivalent to 137,363 shares) were allocated to directors and officers. The Board ratified these awards on April 2, 2025. Independent Director Compensation On March 28, 2025, the Compensation Committee approved annual compensation for independent directors, consisting of a base cash payment of $ 25,000 per director, plus additional cash compensation of $ 4,000 for each committee membership and $ 2,000 for each committee chairmanship held by the director. In addition, each independent director was awarded $ 50,000 in equity compensation, to be paid in shares of common stock. The equity awards are subject to a vesting schedule whereby one-third vests immediately, one-third vests one year from the grant date, and the remaining one-third vests two years from the grant date. The Board approved this compensation on April 2, 2025. During the years ended December 31, 2025 and 2024 , the Company paid or accrued $ 234,500 and $ 312,500 in management fees to its directors. Included in accounts payable at December 31, 2025 is $ 278,600 (2024 - $ 412,500 ) due to related parties. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 18 - SEGMENTED INFORMATION The Company operates as one reportable segment focused on the development and operation of its gold-silver project in Mexico, The Companys Chief Executive Officer (CEO) acts as the Chief Operating Decision Maker (CODM) and the CODM uses consolidated net income/loss as the measure of segment profit and loss to assess performance and allocate resources. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets, with a majority of these assets located in Mexico and had the following geographic concentrations as of December 31, 2025 and 2024: Mexico United States Total December 31, 2025 Mineral property interests, plant and equipment, net $ 17,260,659 $ 47,664 $ 17,308,323 Current assets 9,919,495 280,859 10,200,354 Other assets 28,642,912 1,444,997 30,087,909 Total assets $ 55,823,066 $ 1,773,520 $ 57,596,586 December 31, 2024 Mining concessions 4,132,678 4,132,678 Property and equipment, net 79,290 79,290 Current assets 7,591,704 4,578,998 12,170,702 Other assets 20,002,992 2,138,285 22,141,277 Total assets $ 31,727,374 $ 6,796,573 $ 38,523,947 Year Ended Year Ended Year Ended December 31, 2025 December 31, 2024 Total Revenue for the year - Mexico $ 58,467,565 $ 46,503,016 Total Revenue for the year - United States - - Total Revenue for the year $ 58,467,565 $ 46,503,016 Year Ended Year Ended Year Ended December 31, 2025 December 31, 2024 Total comprehensive income (loss) for the year - Mexico $ 4,43 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 12 STOCKHOLDERS EQUITY The total number of shares of all classes of capital stock which the Company has the authority to issue is 60,001,000 shares, consisting of (i) twenty million and one thousand ( 20,001,000 ) shares of Preferred Stock, par value $ 0.0001 per share (Preferred Stock), of which 1,734,992 shares are designated as Series C Preferred Stock, 3,000,000 shares are designated as Series D Preferred Stock, and 1,552,795 shares are designated as Series E Preferred Stock, and (ii) forty million ( 40,000,000 ) shares of common stock, par value $ 0.01 per share. As of December 31, 2025 , 13,713,213 of Preferred Stock remain undesignated. Series C Senior Convertible Preferred Stock As of December 31, 2025 and 2024, there were 1,734,992 shares of Series C Preferred Stock outstanding. As of December 31, 2025, the Series C Preferred Stock is convertible to common stock at $ 1.95 per share or redeemable in cash at the shareholders option and include anti-dilution protection. The Series C Preferred Stock may receive a 4 % per annum dividend, payable if available, and in arrears, calculated at 4 % of $ 4,337,480 payable annually on June 30. As of December 31, 2025 , dividends for the years ending December 31, 2017 through 2025 totaling $ 1,574,274 were in arrears (2024 - $ 1,400,784 ). Because the Series C Preferred Stock is mandatorily redeemable by the Company at the election of the holder upon maturity, it is classified as ""temporary equity on the consolidated balanc …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 20 SUBSEQUENT EVENTS The Company has evaluated events from December 31, 2025, through the date the consolidated financial statements were issued. No subsequent events were identified that required adjustment to or disclosure in the consolidated financial statements. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing