Financial statements
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ABRASILVER RESOURCE CORP. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (Expressed in Thousands of Canadian Dollars) (UNAUDITED)
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ABRASILVER RESOURCE CORP. Condensed Interim Consolidated Statements of Financial Position (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) June 30, December 31, 2026 2025 As at (Unaudited) (Audited) Assets Current assets Cash and cash equivalents $ 8,088 $ 29,412 Term deposits (*) 15,435 29,047 Receivables 604 395 Prepaid expenses 215 306 Total current assets 24,342 59,160 Equipment (note 6) 529 388 Mineral property interests (note 7) 33,389 26,513 Total Assets $ 58,260 $ 86,061 Liabilities Current liabilities Accounts payable and accrued liabilities (note 12) $ 5,404 $ 7,243 Total current liabilities 5,404 7,243 Total Liabilities 5,404 7,243 Shareholders' Equity Share capital (note 11) 231,280 226,694 Reserves (notes 11(b), (c) and (d)) 12,642 13,122 Accumulated other comprehensive income 2,430 1,220 Accumulated deficit (193,496) (162,218) Total shareholders' equity 52,856 78,818 Total Liabilities and Shareholders' Equity $ 58,260 $ 86,061 (*) The term deposits consist of guaranteed investment certificates with maturities between August 2026 and April 2027. Nature of operations and going concern (note 1) Commitments (note 15) Subsequent event (notes 7 and 16) Approved by the Board of Directors: Director: (s) " Flora Wood" Director: (s) "Robert Bruggeman" The notes to the unaudited condensed interim c onsolidated financial statements are an integral part of these statements. - 2 -
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ABRASILVER RESOURCE CORP. Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) Three months ended Six months ended June 30, June 30, 2026 2025 2026 2025 Administrative expenses Consulting fees $ 187 $ 371 $ 222 $ 518 Insurance 45 38 73 88 Investor relations 44 33 69 111 Office and administration and depreciation 666 710 1,239 1,158 Professional fees (note 12) 995 361 1,677 770 Salaries, benefits and director fees (note 12) 400 544 797 811 Share-based payments (notes 11 and 12) 1,560 978 3,400 2,339 Transfer agent and filing fees 72 80 346 298 Total administrative expenses 3,969 3,115 7,823 6,093 Evaluation and exploration expenses (note 9) 12,951 9,344 23,840 15,961 Other (income) expenses Gain on sale of marketable securities (note 13) - (166) - (786) Other income (note 7(b)) - (682) - (689) Interest income (189) (735) (596) (987) Accretion of consideration payable (note 10) - 36 - 361 Foreign exchange gain (627) 1,673 (1,012) 1,650 Write off of equipment 7 - 7 - Loss on settlement of consideration payable (note 10) - 200 - 200 Loss on disposition of subsidiary (note 8) - 88 - 88 Total other (income) expense (809) 414 (1,601) (163) Net loss from continuing operations 16,111 12,873 30,062 21,891 Loss from discontinued operation (note 8) - 7 - 12 Total net loss for the period 16,111 12,880 30,062 21,903 Other comprehensive (income) loss: Foreign currency translation adjustment - continuing operations (585) 1,368 (1,210) 1,322 Foreign currency translation adjustment - discontinued operations - 13 - 113 Total comprehensive loss for the period - continuing operations 15,526 14,241 28,852 23,213 Total comprehensive loss (income) for the period - discontinued operation - 20 - 125 Total comprehensive loss for the period $ 15,526 $ 14,261 $ 28,852 $ 23,338 Basic and diluted loss per share - continuing operations $ 0.10 $ 0.04 $ 0.19 $ 0.15 Basic and diluted loss per share - discontinued operation $ 0.00 $ 0.00 $ 0.00 $ 0.00 Weighted average number of shares outstanding - basic and diluted (000's) 160,957 152,559 160,550 147,442 The notes to the unaudited condensed interim c onsolidated financial statements are an integral part of these statements. - 3 -
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ABRASILVER RESOURCE CORP. Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) Share Capital Share-based Accumulated other payment comprehensive Accumulated Number Amount reserve income (loss) Deficit Total Balance, December 31, 2024 128,693,370 $ 123,609 $ 7,208 $ 2,449 $ (104,515) $ 28,751 Shares issued in private placement, net of costs 22,959,215 56,220 - - - 56,220 Shares issued for settlement of RSU 76,667 144 (144) - - - Shares issued from exercise of stock options 874,104 503 (261) - (170) 72 Share-based payments - - 2,339 - - 2,339 Foreign currency translation adjustment - - - (1,435) - (1,435) Net loss for the period from continuing operations - - - - (21,891) (21,891) Net loss for the period from discontinued operation - - - - (12) (12) Balance, June 30, 2025 152,603,356 $ 180,476 $ 9,142 $ 1,014 $ (126,588) $ 64,044 Balance, December 31, 2025 159,879,512 $ 226,694 $ 13,122 $ 1,220 $ (162,218) $ 78,818 Shares issued for acquisition of mineral property interests 94,650 1,293 - - - 1,293 Shares issued from exercise of stock options 1,115,939 2,114 (2,386) - (530) (802) Shares issued for settlement of RSU 259,133 1,179 (1,494) - (686) (1,001) Cancellation of shares (18,752) - - - - - Share-based payments - - 3,400 - - 3,400 Foreign currency translation adjustment - - - 1,210 - 1,210 Net loss for the period from continuing operations - - - - (30,062) (30,062) Balance, June 30, 2026 161,330,482 $ 231,280 $ 12,642 $ 2,430 $ (193,496) $ 52,856 The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements. - 4 -
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ABRASILVER RESOURCE CORP. Condensed Interim Consolidated Statements of Cash Flows (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) Six Months Ended June 30, 2026 2025 Operating Activities Net loss for the period from continuing operations $ (30,062) $ (21,891) Items not affecting cash: Accrued interest income (396) (139) Accretion of consideration payable - 361 Foreign exchange loss (gain) (1,012) 1,650 Share-based payments 3,400 2,339 Gain on sale of marketable securities - (786) Loss on settlement of consideration payable - 200 Write off of equipment 7 - Depreciation 44 36 Changes in non-cash operating working capital: Receivables (209) 106 Prepaid expenses 91 (181) Accounts payable and accrued liabilities (3,901) 2,186 Cash (used in) operating activities from continuing operations (32,038) (16,119) Cash (used in) operating activities from discontinued operation (note 8) - (18) Cash (used in) operating activities (32,038) (16,137) Investing Activities Additions to mineral interests (4,436) (1,640) Redemption of term deposits 14,522 - Proceeds from sale of marketable securities - 14,532 Purchase of term deposits - (14,220) Purchase of marketable securities - (13,745) Additions to equipment (168) (85) Payment for acquisition of equipment of Condoryacu (7) - Cash (used in) provided by investing activities - continuing operations 9,911 (15,158) Cash (used in) provided by investing activities - discontinued operation - - Cash (used in) provided by investing activities 9,911 (15,158) Financing Activities Proceeds from issuance of shares in private placements, net of issuance costs - 56,220 Proceeds from exercise of stock options 259 271 Payment to settle consideration payable - (9,661) Cash provided by financing activities - continuing operations 259 46,830 Cash (used in) financing activities - discontinued operation - - Cash provided by financing activities 259 46,830 - 5 -
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ABRASILVER RESOURCE CORP. Condensed Interim Consolidated Statements of Cash Flows (Continued) (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) Six Months Ended June 30, 2026 2025 Foreign exchange effect on cash and cash equivalents - continuing operations 544 (1,301) Foreign exchange effect on cash and cash equivalents - discontinued operation (note 8) - (114) Foreign exchange effect on cash and cash equivalents 544 (1,415) Change in cash and cash equivalents during the period (21,324) 14,120 Cash and cash equivalents, beginning of the period 29,412 13,727 Cash and cash equivalents, end of the period $ 8,088 $ 27,847 Cash and cash equivalents are comprised of: Cash $ 8,088 $ 12,147 Cash equivalents - 15,700 $ 8,088 $ 27,847 Supplemental cash flow information: Interest received $ 132 $ 231 Non-cash investing and financing activities Shares issued for mineral property interests $ 1,293 $ - Shares issued for settlement of RSUs $ - $ 144 The notes to the unaudited condensed interim consolidated financial statements are an integral part of these statements. - 6 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 1. Nature of operations and going concern AbraSilver Resource Corp. (formerly AbraPlata Resource Corp.) (the “Company” or "AbraSilver") was incorporated on August 31, 1993 under the Alberta Business Corporations Act. On September 30, 2015, the Company’s incorporation jurisdiction was moved to British Columbia. The Company’s registered office is located at Suite 550, 220 Bay Street, Toronto, Ontario, M5J 2W4. These unaudited condensed interim consolidated 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 business. As at June 30, 2026, the Company has working capital of $18,938 (December 31, 2025 – $51,917) and has an accumulated deficit of $193,496. The continued operations of the Company are dependent on its ability to generate future cash flows or obtain additional financing. As at June 30, 2026, the Company h as not achieved profitable operations however it had $18,938 working capital and therefore has sufficient resources to sustain operations for the next 12 months, although the Company will need additional funding to achieve its long-term business objectives. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern. On March 4, 2021, the Company changed its name from "AbraPlata Resource Corp." to "AbraSilver Resource Corp.". The common shares of the Company began trading under the Company's new name on the TSX Venture Exchange (the "TSXV") on March 9, 2021. On February 2 4, 2025, the Company a nnounced that it has received final listing approval from the Toronto Stock Exchange (the "TSX") to graduate from the TSXV. The common shares of the Company began trading on the TSX effective at the market open on February 27, 2025, under the symbol "ABRA". The Company’s business may be affected by c hanges in political and market conditions, such as interest rates, availability o f credit, inflation rates, changes in laws, tariffs, and national and international circumstances. Recent geopolitical events, and potential economic global challenges such as the risk of higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company’s business. 2. Basis of preparation Statement of compliance These unaudited condensed interim consolidated financial statements, including comparatives, have been prepared in accordance with International Accounting Standard (“IAS”) 34 ‘Interim Financial Reporting’ (“IAS 34”) using accounting policies consistent with IFRS® Accounting Standards as issued by t he International Accounting Standards Board (“IFRS") and Interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). The accounting policies and methods of computation applied by t he Company i n these unaudited condensed interim consolidated financial statements are the same as those applied in the Company’s annual consolidated financial statements for the year ended December 31, 2025 other than as discussed below. These unaudited condensed interim c onsolidated financial statements were authorized for issue by t he Board of Directors on August 13, 2026. Comparative information Certain comparative information has been reclassified to conform to current period presentation. - 7 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 3. Change in accounting policy Certain new accounting standards and interpretations have been published that are either applicable in the current period or not mandatory for the current period. Future accounting standards IFRS 18 Presentation and Disclosure in Financial Statements was issued by the IASB in April 2024, and introduces three sets of new requirements to give investors more transparent and comparable information about companies’ financial performance for better investment decisions, with mandatory application of the standard in annual reporting periods beginning on or after January 1 , 2027. The Company is still assessing the impact of the implementation of these amendments. No standards have been early adopted in the current period. 4. Financial instruments (a) Fair value estimation The fair value of financial instruments is determined by valuation methods depending on hierarchy levels as defined below: 1. Level 1 of the fair value hierarchy i ncludes unadjusted quoted prices in active markets for identical assets or liabilities; 2. Level 2 of the hierarchy includes inputs that are observable for the asset or liability, either directly or indirectly; and 3. Level 3 includes inputs for the asset or liability that are not based on observable market data. The Company’s marketable securities are valued using level 1 fair value hierarchy. At June 30, 2026 and December 31, 2025, the carrying value was $nil. The carrying values of other financial instruments maturing in the short term approximates their fair values. (b) Financial risks The Company m ay be exposed to risks of varying degrees of significance which could affect its ability to achieve its strategic objectives. The Company manages risks to minimize potential losses. The main objective of the Company’s risk management process is to ensure that the risks are properly identified and that the capital base is adequate in relation to those risks. The Company’s risk exposure and the impact on the Company’s financial instruments are summarized below: Credit risk Credit risk is the risk of potential loss to the Company i f the counterparty t o a financial instrument fails to meet its contractual obligations. The Company is exposed to credit risk with respect to its cash and cash equivalents, receivables and term deposits. The Company’s maximum exposure to credit risk is their carry ing amounts disclosed in the consolidated statements of financial position. Credit risk associated with cash and cash equivalents and term deposits are minimized by placing these instruments with major Canadian financial institutions with strong investment-grade ratings as determined by a primary ratings agency. Credit risk associated with receivables is minimal. - 8 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 4. Financial instruments (continued) (b) Financial risks (continued) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. At June 30, 2026, the Company had a cash and cash equivalents balance of $8,088 and term deposits of $15,435 to settle current liabilities of $5,404. The Company i ntends to finance future requirements from share issuances, the exercise of options, debt or other sources. There can be no certainty of the Company’s ability to raise additional financing through these means. The Company has the following contractual cash flow requirements as at June 30, 2026: June 30, December 31, 2026 2025 Accounts payable and accrued liabilities $ 5,404 $ 7,243 $ 5,404 $ 7,243 Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market factors. Market risk comprises three types of risk: price risk, interest rate risk and currency risk. Price risk Price risk is the risk that the fair value of future cash flows of the Company ’s financial instruments will fluctuate because of changes in market prices. The Company is not exposed to price risks. Interest rate risk Interest rate risk is the risk that the fair values and future cash flows of the Company will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk to the extent that the cash and cash equivalents and term deposits, if any, maintained at financial institutions is subject to a floating rate of interest. The interest rate risk on cash and cash equivalents and term deposits is not considered significant. Currency risk Currency risk is the risk that the fair values or future cash flows of the Company’s financial instruments will fluctuate because of changes in foreign currency exchange rates. The Company is exposed to currency risk through financial assets and liabilities denominated in currencies other than the functional currency o f the entity w hich holds the financial asset or liability. The Company’s financial instruments denominated in currencies other than the functional currency of the entity which holds the financial asset of liability as at June 30, 2026 are as follows: - 9 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 4. Financial instruments (continued) (b) Financial risks (continued) Market risk (continued) Currency risk (continued) Cost ('000) Argentine peso US$ C$ equivalent Cash and cash equivalents 311,575 1,838 2,910 Term deposits - 10,086 14,307 Accounts payable and accrued liabilities 1,549,315 1,185 3,168 The Company’s sensitivity analysis suggests that a 10% depreciation or appreciation of the foreign currencies against the Canadian dollar would have resulted in an approximate $1,405 decrease or increase in the Company’s total net income or loss. As at June 30, 2026, US dollar amounts have been translated at a rate of C$1.421 per US dollar, and Argentine peso amounts have been translated at C$0.0010 per Argentine peso. 5. Capital management The Company’s objectives when managing capital are to safeguard the Company’s ability t o continue as a going concern in order to pursue the development and exploration of its mineral properties and to maintain a flexible capital structure, which optimizes the costs of capital to an acceptable risk. The Company c onsiders its capital to include shareholders' equity. The Company depends on external financing to fund its activities and there can be no guarantee that external financing will be available at terms acceptable to the Company. Additional funding will be required by the Company to complete its strategic objectives and continue as a going concern. There is no certainty that additional financing at terms that are acceptable to the Company w ill be available. The capital structure of the Company c urrently c onsists of common shares. The Company m anages the capital structure and makes adjustments to it in light of changes in economic conditions and risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company m ay i ssue new debt, new shares or warrants. The Company is not subject to externally r estricted capital requirements. Management reviews its capital management approach on a regular basis. There were no changes in the Company’s approach to capital management. - 10 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 6. Equipment Cost Equipment Balance, December 31, 2024 $ 370 Additions 139 Impact of foreign exchange (25) Balance, December 31, 2025 484 Additions 168 Additions from acquisition of Condoryacu (note 7) 9 Write off (9) Impact of foreign exchange 21 Balance, June 30, 2026 $ 673 Accumulated depreciation Balance, December 31, 2024 $ 27 Depreciation 76 Impact of foreign exchange (7) Balance, December 31, 2025 96 Depreciation 44 Additions from acquisition of Condoryacu (note 7) 2 Write off (2) Impact of foreign exchange 4 Balance, June 30, 2026 $ 144 Net book value Balance, December 31, 2025 $ 388 Balance, June 30, 2026 $ 529 The additions to the equipment during the six months ended June 30, 2026 include camp equipment from the acquisition of Condoryacu. The additions to the equipment during the year ended December 31, 2025 include containers used in mineral property interest projects and are depreciated over five years on a declining balance. The depreciation of the equipment is included in the evaluation and exploration expenses (note 9). 7. Mineral property interests Through the Company’s wholly-owned subsidiaries, the Company controls exploration projects in Argentina classified by the Company into the Diablillos Project and La Coipita Project. All acquisition costs and option payments related to these exploration projects are capitalized as mineral property interests and are incurred in US dollars and translated to Canadian dollars, the presentation currency for the Company. - 11 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 7. Mineral property interests (continued) (a) Diablillos project (1) On November 1, 2016, the Company closed a share purchase agreement dated August 23, 2016, as amended and restated on March 21, 2017, and further amended on September 11, 2019, with SSR Mining Inc. ("SSRM") and Fitzcarraldo Ventures Inc. (the "Diablillos SPA") pursuant to which Huayra Mineral Corporation, a wholly o wned subsidiary o f the Company, acquired from SSRM all of the issued and outstanding shares of Pacific Rim M ining Corporation Argentina S.A., ABP Global Inc. (BVI) and ABP Diablillos Inc.(BVI) (together, the “SSRM subsidiaries”). Through the acquisition of the SSRM subsidiaries, the Company a cquired certain exploration projects in Salta Province, Argentina (the "Diablillos Project"). Cash consideration payable to SSRM consists of the following: 1. US$300 on closing; this amount to be increased by an amount equal to the US dollar equivalent of the amount of Argentine pesos deposited in entity purchased by the Company (paid); 2. US$300 on or before February 15, 2017 (as amended) (paid); 3. US$500 on 180th day after closing (paid); 4. US$50 on or before January 12, 2018 (as amended) (paid); 5. $ 200 to be paid on December 19, 2019 (paid); 6. US$5,000 to be paid on the earlier of (paid): o the date on which a Diablillos Feasibility Study in respect of all or any part of the Diablillos Concessions has been obtained; o July 31, 2023; and o 90 days after demand by S SRM for payment if (a) AbraSilver’s market capitalization exceeds $100,000 for 20 consecutive trading days (on the primary s tock exchange on which such entity’s shares are traded) or (b) after November 1, 2020, the spot price of silver (based on the London Bullion Market Association (LBMA) Silver Price as published by the LBMA on its website (or should that quotation cease, another similar quotation acceptable to the parties acting reasonably) (the “Benchmark”) exceeds $25 per ounce for 20 consecutive trading days on the Benchmark; 7. US$7,000 to be paid on the earlier of (note 10 and paid): o the date on which Commercial Production occurs in respect of all or any part of the Diablillos Concessions (not reached yet); and o July 31, 2025. On September 2, 2020 AbraSilver’s market capitalization exceeded $100,000 for twenty (20) consecutive trading days on the TSXV for the period from and after August 6, 2020 to and including September 2, 2020. On the same day SSRM requested the US$5,000 to be paid within 90 days. During the year ended December 31, 2020, the Company p aid $6,534 (US$5,000) as an addition to the Diablillos project. - 12 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 7. Mineral property interests (continued) (a) Diablillos project (continued) The US$7,000 balance would be paid on earlier of the date on which commercial production occurs in respect of all or any part of the Diablillos Project and July 31, 2025. On April 10, 2025, the Company c ompleted the final payment ahead of schedule by t he paying US$6.85 million, a reduced total obligation from the original US$7.0 million payment obligation. With this final payment, the Company has fully satisfied its purchase obligation, securing 100% ownership of the Diablillos project. (2) On August 30, 2017 the Company signed a share purchase agreement, which was amended September 6, 2019, to acquire all of the issued and outstanding shares of Minera Cerro Bayo S.A. (“Cerro Bayo”), a privately held Argentine company. Cerro Bayo owns certain mineral rights that, as a result of a long-standing border dispute between two neighboring provinces in northwestern Argentina, overlap and potentially conflict with the Company's mineral rights to its Diablillos Ag-Au project. The acquisition of the potentially conflicting mineral rights through the acquisition of Cerro Bayo means that the Company will retain its title to the Diablillos Ag-Au project regardless of the ultimate outcome of the provincial border dispute. Cash and equity consideration payable under the agreement is as follows: 1. US$225 upon closing (paid); 2. US$175 on or before February 28, 2018 (paid); 3. US$15 upon signing of the September 6, 2019, amendment (paid); 4. US$350 and 300 common shares on or before November 30, 2019 (paid and issued); 5. US$65 on or before April 30, 2020 (paid); 6. US$65 and 200 common shares on or before October 31, 2020 (paid and issued); 7. US$65 on or before April 30, 2021(paid); 8. US$65 on or before October 31, 2021 (paid); 9. US$65 on or before April 30, 2022 (paid); 10. US$65 on or before October 31, 2022 (paid); 11. US$1,000 on or before July 31, 2023 (paid); 12. US$1,170 on or before July 31, 2025 (paid). - 13 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 7. Mineral property interests (continued) (a) Diablillos project (continued) (3) On June 20, 2025, the Company entered into a net smelter returns royalty agreement (the “Catamarca Agreement”) with EMX Royalty C orporation (“EMX”) in respect of certain mineral concessions comprising part of the Diablillos Project and located in the province of Catamarca. The mineral concessions that are subject to the Catamarca Agreement overlap with certain mineral concession located in the province of Salta and which are subject to the historical net smelter returns royalty agreement dated November 1, 2016 and which has been duly assigned to EMX. The Catamarca Agreement memorializes the agreement of the parties to grant, in the aggregate, a 1% production royalty t o EMX on the net smelter returns from the Diablillos Project, irrespective of whether certain of the mineral concessions comprising the Diablillos Project are finally d etermined to be located in the province of Salta or Catamarca. As consideration for the entering into of the Catamarca Agreement, EMX made a pay ment to AbraSilver of US$500 ($682) which is recorded as other income in profit or loss. (4) On December 2025 , the Company e ntered into agreements with multiple arms’ length parties to acquire several strategic mining properties in the vicinity of its flagship Diablillos project in Argentina. Mi Belelo 3 Property On December 3, 2025, AbraSilver, through its wholly owned subsidiary, Pacific Rim Mining Corporation Argentina SA ("PRMC"), received an offer to enter into a purchase agreement to purchase a 100% interest in a mineral property known as Mi Belelo 3 Property, located in the Antofagasta de la Sierra Department in the Province of Catamarca, Argentina. In accordance with the agreement, the Company must pay to the owners US$200 (paid). Natalia Property On December 3, 2025, AbraSilver, through its wholly o wned subsidiary, PRMC received an offer to enter into a purchase agreement to purchase a 100% interest in a mineral property k nown as Natalia Property, located in the Antofagasta de la Sierra Department in the Province of Catamarca, Argentina. In accordance with the agreement, the Company must pay to the owners US$200 (paid). Condoryacu Property On December 15, 2025, AbraSilver, through its wholly o wned subsidiary, PRMC, received an offer to enter into an Agreement for the Exploration of Condoryacu Mining Properties and Purchase Option of Condoryacu SRL (“Condoryacu”), the offer was accepted by P RMC on December 17, 2025 (the Execution date). The Condoryacu Property is in the cooperation area between the provinces of Salta and Catamarca and includes the following Mining concessions: María Amalia Mine, located in the province of Salta; Condor Yacu I Mine (the ”Concessions”), located in the province of Catamarca, and a water easement, in the province of Salta. The Concessions are subject to a 1% net smelter return royalty (“NSR”) on production. To earn 100% interest in Condoryacu the Company must: a. Pay US$250 within 15 days from the Execution date (paid); and b. Pay US$2,500 within 90 days from the Execution date (paid). On March 27, 2026 the Company submitted the notice exercising the Exploration of Condoryacu Mining Properties and the Purchase Option of Condoryacu. - 14 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 7. Mineral property interests (continued) (a) Diablillos project (continued) Condoryacu Property (continued) Condoryacu assets consist of a group of mining properties described above, and it does not have any processes, workforce, or other inputs capable of producing outputs. As the acquired corporation does not meet the definition of a business under IFRS 3 Business Combinations, the transaction has been accounted for as an asset acquisition. Accordingly, no goodwill has been recognized, and no other assets or liabilities were acquired. The allocation of the consideration to assets and liabilities acquired is as follows: Consideration Cash (paid in 2025) $ 348 Cash (paid during the three months ended March 31, 2026) 3,469 $ 3,817 Assets acquired Equipment $ 7 Mineral property interest 3,810 $ 3,817 María Amalia 1 Property On December 15, 2025, AbraSilver, through its wholly owned subsidiary PRMC, received an offer to enter into an option agreement to purchase a 100% interest in a mineral property known as María Amalia 1 Property, located in the Los Andes Department in the Province of Salta, Argentina. To earn the interest the Company must pay to the owner the total amount of US$250 within 90 days from the offer date (paid). Bianca X On February 6, 2026, AbraSilver, through its wholly owned subsidiary, PRMC, received an offer to enter into a purchase agreement to purchase a 100% interest in a mineral property k nown as Bianca X, with a surface area of 2,945.5 hectares, located in San Antonio de los Cobres los Andes Department in the Province of Salta, Argentina. To acquire the interest the Company w as required to pay t he owners US$100 and issued 94,650 shares of the Company. On February 13, 2026, US$100 was paid by PRMC and 94,650 AbraSilver Shares were issued which was valued at $1,293 based on the Company's share price of $13.66 on the date of issuance. In addition, the Company p aid $10 share issuance cost for the shares issued for the addition to mineral property interest. - 15 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 7. Mineral property interests (continued) (a) Diablillos project (continued) El Chañal On January 30, 2026, AbraSilver, through its wholly owned subsidiary PRMC, received an offer to enter into a purchase option agreement to purchase a 100% interest in a mineral property k nown as El Chañal, with a surface area of 3,498.91 hectares, located in San Antonio de los Cobres, los Andes Department in the Province of Salta, Argentina. To acquire the interest, the Company paid to the owners US$350 during the six months ended June 30, 2026. (b) La Coipita project On January 3 1, 2020, AbraSilver entered into an option agreement, through its wholly o wned subsidiary, AbraPlata Argentina SA, to acquire a 100% interest in the La Coipita project (“La Coipita”) located in San Juan province, Argentina by paying a total of US$4,265 in staged payments over 60 months (US$4,265 paid to March 31, 2026) to the optionors. On October 23, 2023, the Company a nd the optionors amended the US$1,000 cash amount to be paid to the optionors in January 2024 and the US$2,500 cash amount to be paid in January 2025. As per the amendment the Company p aid US$ 500 on January 3 1, 2024, paid US$1,000 in January 2 025 and paid the remaining US$2,000 January 2026. Cash consideration payable per the letter agreement were as follows: 1. US$35 upon acceptance of the letter agreement (paid); 2. US$30 in February 2020 (paid); 3. US$100 in January 2021 (paid); 4. US$200 in January 2022 (paid); 5. US$400 in January 2023 (paid); 6. US $500 in January 2024 (paid); 7. US$1,000 in January 2025 (paid); and 8. US$2,000 in January 2026 (paid). In the event the project is placed into commercial production, the optionors shall be entitled to collect 1.1% of the net smelter return (“NSR”), which AbraSilver may purchase for US$3,000 during the 60 months after the first staged payment was made, or for US$5,000 thereafter until start-up of construction of the project. On February 5 , 2020, AbraPlata Argentina SA ("AbraPlata") entered into a binding letter agreement with Altius Resources Inc. to sell its right to acquire the 1.1% NSR from the optionors. In consideration, Altius agreed to invest in AbraPlata by way of subscription for common shares or share units in its next equity financing a minimum sum of $125 (received). On August 9, 2021, AbraSilver entered into an option agreement, through its wholly owned subsidiary, AbraPlata, to acquire a 100% interest in the Yaretas project (“Yaretas”) located in San Juan province, Argentina by paying a total of US$3,025 in staged payments over 60 months (US$1,525 paid to December 31, 2025) to the optionors (“Yaretas Project Owners”). On August 11, 2023, the Company and the Yaretas Project Owners amended the US$ 200 cash amount to be paid to the owners in August 2023. As per the amendment the Company paid US$100 on August 31, 2023 and the remaining US$ 100 was paid in August 2024. - 16 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 7. Mineral property interests (continued) (b) La Coipita Project (continued) Cash consideration payable per the letter agreement is as follows: 1. US$50 upon celebration of the letter agreement (paid); 2. US$75 in August 2022 (paid); 3. US$100 in August 2023 (paid); 4. US$500 in August 2024 (paid); 5. US$800 in August 2025 (paid); and 6. US$1,500 in August 2026 (paid subsequent to June 30, 2026). In the event the project is placed into commercial production, the Yaretas Project Owners shall be entitled to collect 1.1% of NSR, which AbraSilver may purchase for US$5,000 at any time. Agreement with Teck Resources Limited ("Teck") On January 22, 2024 the Company announced that it has executed a definitive option and joint venture agreement (the “Agreement”) with a subsidiary o f Teck, to explore and develop the La Coipita copper-gold project i n San Juan, Argentina. The Agreement grants Teck an option (the “La Coipita Option”) to acquire an 80% interest in La Coipita by f unding cumulative exploration expenditures of US$20,000 over a five-year period, making staged cash payments to AbraSilver, and participating in an equity p lacement in AbraSilver totaling US$3,060 (including an initial mandatory p ayment of US$560), and making up to US$6,300 in optional cash payments in respect of amounts payable to the underlying Project vendors. Following an initial transition period during which AbraSilver will support field operations, Teck is expected to act as operator for the duration of the La Coipita Option. Cash consideration receivable per the Agreement are as follows: 1. US$560 cash payment upon closing of the agreement (optional payment - received); 2. US$1,000 cash payment or at Teck’s election, subscription for US$1,000 of common shares of AbraSilver (“ABRA Shares”) on or before January 31, 2025, to be priced at the greater of (a) a 25% premium to the preceding 20-day volume weighted average price of ABRA shares, or (b) $1.75 per ABRA Share (optional payment or subscription) (shares issued); and 3. US$1,500 cash payment on or before January 31, 2028 (optional payment). In settlement of the second milestone above, 408,163 shares were issued on December 19, 2024 for gross proceeds of $1,426 (US$1,000). The value of the shares were determined to be $9,445 based on the fair market value of the Company's shares on the date of issuance and the difference of $482 was offset against the capitalized costs of the La Coipita project. Additional cash payments in respect of amounts for expenditures required to settle payments to the project optionors: 1. US$500 Initial payment (mandatory payment - received); 2. US$500 on or before July 31, 2024 (optional payment - received); 3. US$1,000 on or before January 15, 2025 (optional payment - received); 4. US$800 on or before July 31, 2025 (optional payment - received); 5. US$2,000 on or before January 15, 2026 (optional payment - received in December 2025); and 6. US$1,500 on or before July 31, 2026 (optional payment - received in July 2026). - 17 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 7. Mineral property interests (continued) (b) La Coipita Project (continued) Agreement with Teck (continued) The $3,897 (US$2,800) received from Teck during the year ended December 31, 2025 and $3,509 (US$2,560) received from Teck during the year ended December 31, 2024 were applied against the mineral property interest of La Coipita. Upon exercise of the La Coipita Option, the parties will incorporate a company in Argentina (“Newco”) to become the titleholder of La Coipita. Teck will hold 80% of Newco’s outstanding shares, with AbraSilver holding the remaining 20%. Each party will fund its pro-rata share of future expenditures on La Coipita through equity contributions to Newco or incur dilution in Newco. If a party’s shareholding interest in Newco is diluted below 10% or pursuant to certain other conditions of the Agreement, its shareholding interest will be converted to a 1.1% net smelter returns royalty o n La Coipita, of which 0.6% can be bought back by the payor for a cash payment of US$3,000 at any time. Diablillos La Coipita Project Project Total December 31, 2024 $ 24,816 $ 440 $ 25,256 Additions, cash(i) 2,546 3,897 6,443 Options payment received from Teck - (3,897) (3,897) Foreign exchange translation (1,268) (21) (1,289) December 31, 2025 26,094 419 26,513 Additions, cash (ii) 4,436 - 4,436 Shares issued for acquisition of Bianca X 1,293 - 1,293 Foreign exchange translation 1,132 15 1,147 June 30, 2026 $ 32,955 $ 434 $ 33,389 (i) The additions of $2,546 includes $1,640 of additions which fulfilled the payment obligation of US$1,170 as shown in note 7(a) and $906 which fulfilled the payment obligation of US$650 for the new properties acquired in 2025 under Diablillos project as shown in note 7(a). (ii) The additions of $4,436 includes $3,462 (US$2,495) for the Condoryacu Property, $343 (US$250) for Maria Amalia 1 Property, $484 (US$350) for El Channal and $137 (US$100) for Bianca X and $10 for pay ment of share issuance costs for shares issued for acquisition of Bianca X under Diablillos project as shown in note 7(a). - 18 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 8. Discontinued operation On June 16, 2025, the Company disposed of its subsidiary, Aethon Minerals Chile SpA to a third party in Chile for $18 (US$13). The net assets of Aethon Minerals Chile SpA disposed of on June 16, 2025 was $106, resulting in a loss on disposition of subsidiary of $88. Aethon Minerals Chile SpA met the definition of a discontinued operation and has been presented as such in the condensed interim consolidated statement of loss and comprehensive loss. The comparative statements of loss and comprehensive loss have been re-presented to show the discontinued operation separately from continuing operations. The financial performance and cash flow information presented for the six months ended June 30, 2026 and 2025 are set out below. Three months ended Six months ended June 30, June 30, 2026 2025 2026 2025 Administrative expenses Office and administration and depreciation $ - $ 1 $ - $ 2 Professional fees - 7 - 11 Total administrative expenses - 8 - 13 Other expense Foreign exchange loss - (1) - - Interest income - - - (1) Total other expense - (1) - (1) Net loss from discontinued operations $ - $ 7 $ - $ 12 Cash flows from Aethon Minerals Chile SpA are as below: Six Months Ended June 30, 2026 2025 Operating Activities Net loss for the period from discontinued operation $ - $ (12) Changes in non-cash operating working capital: Receivables - (4) Accounts payable and accrued liabilities - (2) Cash (used in) operating activities $ - $ (18) Foreign exchange effect on cash and cash equivalents - (114) Change in cash and cash equivalents during the period - (132) Cash and cash equivalents, beginning of the period - 261 Cash and cash equivalents, end of the period $ - $ 129 - 19 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 9. Evaluation and exploration expenses Three months ended Six months ended June 30, June 30, 2026 2025 2026 2025 Diablillos Camp costs $ 1,827 $ 1,315 $ 3,095 $ 2,330 Drilling 4,345 3,990 8,734 7,401 Legal and regulatory fee 93 50 140 82 Engineering 1,097 503 1,734 525 Geology and lab 677 198 1,195 1,210 Personnel costs 1,620 1,156 2,787 1,817 Permitting 16 44 26 53 Travel and transport 476 241 689 462 Administration 397 182 764 398 Feasibility study 2,379 1,646 4,632 1,646 Depreciation 24 19 44 37 Total evaluation and exploration expenses $ 12,951 $ 9,344 $ 23,840 $ 15,961 10. Consideration payable As at As at June 30, December 31, 2026 2025 Opening balance $ - $ 9,287 Accretion - 361 Loss on settlement - 200 Payment - (9,661) Foreign exchange gain - (187) Ending balance $ - $ - The consideration payable represents the remaining payment in the amount of US$7,000 as per the Diablillos SPA, which is to be paid on the earlier of the date on which commercial production occurs in respect of all or any part of the Diablillos Concessions and July 31, 2025. The payment obligation is discounted and accreted at a discount rate of 15% per annum, with an estimated payment date of July 31, 2025, see note 7 (a). On April 10, 2025, the Company made the payment ahead of schedule by paying $9,661 (US6.85 million), a reduced total obligation and recorded a loss on settlement of consideration payable of $200 and foreign exchange gain of $187. 11. Share capital a) Authorized and issued Authorized: Unlimited common shares without par value. Unlimited first preferred shares without par value. Unlimited second preferred shares without par value. - 20 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 11. Share capital (continued) a) Authorized and issued (continued) (i) On February 12, 2025, the Company announced the completion of a bought deal public offering (the “Offering”). The Company i ssued 11,765,650 common shares at a price of $2.55 per share for aggregate gross proceeds of $30,002. The Offering was completed pursuant to an underwriting agreement dated February 4, 2025 entered into among the Company a nd a syndicate of underwriters, led by N ational Bank Financial Inc. and Beacon Securities Limited, acting as co-bookrunners, and including Raymond James Ltd., Scotia Capital Inc. and TD Securities Inc. (collectively, the “Underwriters”). In connection with the Offering, the Company p aid the Underwriters a cash commission equal to 6.0% of the aggregate gross proceeds raised. In connection with the Offering, the Company also issued 10,094,697 common shares to an affiliate of Central Puerto S.A. and 1,098,868 common shares to Kinross Gold Corporation, upon the exercise of certain participation rights held by s uch persons for gross proceeds of $28,544. The common shares sold pursuant to the Offering are subject to a hold period of four months plus one day from the closing date of the Offering. The Company incurred total transaction costs of $2,326. (ii) On October 22, 2025, the Company closed a bought deal private placement, pursuant to the listed issuer financing exemption (the “October 2025 Offering”), of 6,513,000 common shares at a price of $7.10 per share for aggregate gross proceeds of $46,242. This total includes the partial exercise of the underwriters' option. Concurrently with the October 2025 Offering, the Company issued 270,860 common shares to Kinross Gold Corporation, upon the exercise of a participation right held by Kinross (the "Concurrent Private Placement"), for aggregate gross proceeds of $1,923. The Company incurred share issuance costs of $2,926 related to the bought deal private placement and Concurrent Private Placement. The common shares sold pursuant to the Concurrent Private Placement are subject to a hold period of four months plus one day from the date of issuance. (iii) On February 13, 2026, 94,650 shares were issued for acquisition of Bianca X which was valued at $1,293 based on the Company's share price of $13.66 on the date of issuance (note 7 (a)). (iv) On March 9, 2026, 18,752 shares were canceled, as the deadline outlined in the Aethon Minerals Corporation and AbraPlata Resource Corp. Depositary Agreement had passed without the holder tendering their position. - 21 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 11. Share capital (continued) b) Stock options The share compensation plan of the Company (the “Share Compensation Plan”) was adopted by the Company’s board of directors (the “Board”) on July 16, 2020 and approved by the Company’s shareholders on August 27, 2020. On July 1 3, 2022, the Board approved certain administrative amendments to the share compensation plan, including: (i) clarifying the circumstances which the expiry time for options and RSUs may be extended during a black-out period; (ii) placing limits on when RSUs may vest; (iii) modifying the certain amendments to the share compensation plan that would require shareholder approval; (iv) adding certain defined terms to the share compensation plan to conform to the policies of the TSXV; (v) specifying that decisions relating to certain adjustments and vesting acceleration shall require the prior approval of the TSXV; (vi) specifying certain instances where a TSXV imposed hold period will be applied to awards; and (vii) allowing for the issuance of “incentive stock options”. On July 18, 2023, the Board approved a further amendment to the Share Compensation Plan in order to allow for the exercise of Options on a net basis whereby the option holders will be entitled to receive that number of common shares that is the equal to the quotient obtained by dividing: (i) the product of the number of options being exercised multiplied by t he difference between the market price of the common shares based on the volume weighted average price of the common shares traded on the TSXV for the five (5) consecutive trading day s prior to such date and the exercise price of the subject Options; by (ii) the market price of the common shares based on the volume weighted average price of the common shares traded on the TSXV for the five (5) consecutive trading day s prior to such date. On August 7, 2024, the Board approved a further amendment to the Share Compensation Plan to adjust, following the Consolidation, the type and number of securities or other property t o be received upon exercise or redemption of awards granted pursuant to and the total number of securities reserved and available for issuance under the Share Compensation Plan. On February 27, 2025, in connection with the Company’s delisting from the TSXV and listing on the TSX, the Board approved a further amendment to the Share Compensation Plan in order to effect administrative amendments to comply with the policies of the TSX. On May 15, 2025, the Board approved a further amendment to the Share Compensation Plan in order to change the Share Compensation Plan from a “rolling 10% plan” in respect of Options and a “fixed plan” in respect of RSUs to a “rolling 10% plan” in respect of Options and RSUs. The Share Compensation Plan was approved by the Company’s shareholders on June 26, 2025. - 22 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 11. Share capital (continued) b) Stock options (continued) Under the Share Compensation Plan, the Company i s authorized to grant Options and/or RSUs to officers, directors, employees and consultants enabling them to acquire up to that number of common shares equal to 10% of the issued and outstanding common shares of the Company at the time of the grant. The Options can be granted for a maximum of ten years and vest as determined by the Board. The exercise price of each option granted may not be less than the fair market value of the common shares. On March 10, 2025 the Company g ranted 300,000 Options to a consultant firm Caro & Navarro Limitada. The Options are exercisable at a price of $3.32 per common share for a period of five y ears from the date of grant. The options vest in 50% instalments on January 3 1, 2026 and June 30, 2026. The fair value of the Options was determined to be $700 using the Black-Scholes option pricing model with the following assumptions: 5 years expected life; share price at the grant date of $3.13; 89% volatility; risk free interest rate of 2.63%; and a dividend yield of 0%. On June 26, 2025 the Company g ranted an aggregate of 1,305,000 Options to directors, officers, employees, advisors and consultants of the Company. The Options are exercisable at a price of $4.55 per common share for a period of five years from the date of grant. The Options vest in 25% instalments every 6 months, starting from the date of the grant. The fair value of the Options was determined to be $3,940 using the Black-Scholes option pricing model with the following assumptions: 5 years expected life; share price at the grant date of $4.55; 82% volatility; risk free interest rate of 2.87%; and a dividend yield of 0%. On October 30, 2025 the Company granted an aggregate of 100,000 Options to a director of the Company. The Options are exercisable at a price of $6.59 per common share for a period of five y ears from the date of grant. The Options vest in 25% instalments every 6 months, starting from the date of the grant. The fair value of the Options was determined to be $420 using the Black-Scholes option pricing model with the following assumptions: 5 years expected life; share price at the grant date of $6.59; 77% volatility; risk free interest rate of 2.71%; and a dividend yield of 0%. Expected volatility was estimated based on the historical prices of the Company's stock. During the three and six months ended June 30, 2026, the Company recorded $793 and $1,857, respectively ( three and six months ended June 30, 2025 - $948 and $2,304, respectively) in share-based payments related to the stock options. The movement in the Company’s share options for the six months ended June 30, 2026 and 2025 are as follows: Number of stock Weighted average options outstanding exercise price Balance, December 31, 2024 6,917,500 $ 1.69 Exercised (1,020,000)(2) 0.41 Granted 1,605,000 4.32 Expired (40,000) 2.25 Balance, June 30, 2025 7,462,500 $ 2.61 Balance, December 31, 2025 6,881,000 $ 2.73 Exercised (1,405,000) (1) 2.39 Balance, June 30, 2026 5,476,000 $ 2.82 (1) 1,265,000 options were net settled by issuance of 975,939 shares. (2) 445,000 options were net settled by issuance of 299,104 shares. - 23 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 11. Share capital (continued) b) Stock options (continued) The weighted average trading price of the Company's shares on the dates of the exercises of Options was $14.16 for the six months ended June 30, 2026 (six months ended June 30, 2025 - $2.68). Stock options outstanding as at June 30, 2026: Remaining Options Exercise contractual Options Expiry date outstanding price ($) life (years) exercisable February 11, 2027 325,000 1.88 0.62 325,000 February 17, 2028 535,000 1.85 1.64 535,000 March 28, 2029 908,500 1.78 2.75 908,500 September 3, 2029 400,000 2.21 3.18 300,000 September 18, 2029 1,830,000 2.51 3.22 1,372,500 March 10, 2030 150,000 3.32 3.70 150,000 June 26, 2030 1,227,500 4.55 3.99 613,750 October 30, 2030 100,000 6.59 4.34 25,000 5,476,000 2.82 3.04 4,229,750 c) Warrants The Company has no warrants outstanding as at June 30, 2026 and December 31, 2024 and 2025. - 24 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 11. Share capital (continued) (d) RSU RSU movements are as follows: Balance, December 31, 2024 76,667 Granted 985,000 Vested and settled (76,667) Balance, June 30, 2025 985,000 Balance, December 31, 2025 1,085,000 Vested and settled (328,329) Balance, June 30, 2026 756,671 During the six months ended June 30, 2026, the Company issued 259,133 shares (six months ended June 30, 2025 - 76,667 shares in settlement upon vesting of 76,667 RSUs) in settlement upon vesting of 328,329 RSUs. On June 26, 2025, the Company granted 985,000 RSUs to officers, directors and consultants.The RSU will vest as follows: 33.33% on June 26, 2026; 33.33% on June 26, 2027 and 33.34% on June 26, 2028. For the three and six months ended June 30, 2026, the Company recorded $767 and $1,543, respectively (three and six months ended June 30, 2025 - $30 and $36, respectively) as a share-based payments relating to the RSUs. 12. Related party transactions Key management personnel include the members of the Board of Directors and officers of the Company , who have the authority a nd responsibility f or planning, directing and controlling the activities of the Company. Amounts paid and accrued to directors, former director, officers and companies in which directors and officers are shareholders or partners are as follows: Three months ended Six months ended June 30, June 30, 2026 2025 2026 2025 Salaries, benefits and director fees $ 325 $ 506 $ 649 $ 732 Professional fees 101 140 212 252 Share-based payments 1,117 584 2,421 1,532 $ 1,543 $ 1,230 $ 3,282 $ 2,516 As at June 30, 2026, $56 (December 31, 2025 – $528) was payable to directors, officers and companies in which directors and officers are shareholders or partners of the Company. These amounts are unsecured, non-interest bearing and have no specific terms of repayment. - 25 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 13. Use of marketable securities From time to time, the Company may acquire and transfer marketable securities to facilitate intragroup funding transfers between the Canadian parent and its Argentine operating subsidiaries. The Company d oes not acquire marketable securities or engage in these transactions for speculative purposes. In this regard, under this strategy, the Company generally uses marketable securities of large and well established companies, with high trading volumes and low volatility. Nonetheless, as the process to acquire, transfer and ultimately sell the marketable securities occurs over several days, some fluctuations are unavoidable. As the marketable securities are acquired with the intention of a near term sale, they a re considered financial instruments that are held for trading, all changes in the fair value of the instruments, between acquisition and disposition, are recognized through profit or loss. The subsequent disposition of these marketable securities in exchange for Argentine pesos gave rise to a gain as the amount received in Argentine peso exceeds the amount of Argentine peso the Company w ould have received from a direct foreign currency exchange. As a result of having utilized this mechanism for intragroup funding for the three and six months ended June 30, 2026, the Company r ealized a gain of $nil (three and six months ended June 30, 2025 - $166 a nd $786, respectively) from the favorable foreign currency impact. During the three and six months ended June 30, 2026, the Company r eceived $nil (three and six months ended June 30, 2025 - $8,747 and $14,532, respectively) from the disposal of the marketable securities and paid $nil (three and six months ended June 30, 2025 - $8,580 and $13,745, respectively) for the purchase of the marketable securities. 14. Segmented information Operating segments are reported in a manner consistent with internal reporting provided to the chief operating decision maker. The chief operating decision maker is responsible for allocating resources and assessing performance of the operating segments and has been identified as the Company's CEO. During the three and six months ended June 30, 2026, the Company has three (three months ended June 30, 2025 – four) operating segments. The Company's reportable segments are based on the geographic region for the Company's operations and include Argentina, U.S. and Chile. The gains on sale of marketable securities are allocated to Argentina, as they are the result of funding provided to the Company’s Argentine subsidiaries. The segmental report is as follows: As at June 30, 2026 US Argentina Canada Total Current assets $ 22 $ 1,474 $ 22,846 $ 24,342 Equipment - 529 - 529 Mineral property interests - 33,389 - 33,389 Total assets $ 22 $ 35,392 $ 22,846 $ 58,260 Total liabilities $ 22 $ 2,308 $ 3,074 $ 5,404 As at December 31, 2025 US Argentina Canada Total Current assets $ 139 $ 2,118 $ 56,903 $ 59,160 Equipment - 388 - 388 Mineral property interests - 26,513 - 26,513 Total assets $ 139 $ 29,019 $ 56,903 $ 86,061 Total liabilities $ 112 $ 3,498 $ 3,633 $ 7,243 - 26 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 14. Segmented information (continued) Three months ended June 30, 2026 US Argentina Chile Canada Total Continuing operations Net loss $ - $ (11,254) $ - $ (4,857) $ (16,111) Six months ended June 30, 2026 US Argentina Chile Canada Total Continuing operations Net loss $ - $ (20,624) $ - $ (9,438) $ (30,062) Three months ended June 30, 2025 US Argentina Chile Canada Total Continuing operations Gain on sale of marketable securities $ - $ 166 $ - $ - $ 166 Net loss $ (339) $ (8,590) $ - $ (3,944) $ (12,873) Discontinued operation Net loss $ - $ - $ (7) $ - $ (7) Six months ended June 30, 2025 US Argentina Chile Canada Total Continuing operations Gain on sale of marketable securities $ - $ 786 $ - $ - $ 786 Net loss $ (433) $ (14,749) $ - $ (6,709) $ (21,891) Discontinued operation Net loss $ - $ - $ (12) $ - $ (12) 15. Commitments As at June 30, 2026, the Company has mineral interest commitments at its La Coipita and Diablillos projects in the form of option payments. The Company has the following commitments (option payments - at the Company's discretion): Year ended December 31, 2026 La Coipita $ 2,132 Total commitments $ 2,132 - 27 -
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ABRASILVER RESOURCE CORP. Notes to Condensed Interim Consolidated Financial Statements June 30, 2026 and 2025 (Expressed in Thousands of Canadian Dollars, except for securities and per share amounts) (Unaudited) 16. Subsequent events On July 3 , 2026, the Company i ssued 130,000 shares after 130,000 stock options were exercised at an exercise price of $1.775. On July 22, 2026, the Company announced the following changes to the Board and senior management team. Marie Inkster was appointed as Executive Chair of the Board, Hernan Zaballa and Sam Leung had stepped down from the Board. John Miniotis, the Company’s President and Chief Executive Officer, was appointed to the Board to fill one of the vacancies resulting from the resignations, Mr. Miniotis has served as President and CEO of the Company s ince 2019, Jeremy W eyland was promoted to Chief Operating Officer. Mr. Weyland previously served as Senior Vice President, Projects and Development. On July 22, 2026, the Company announced that it had entered into an agreement with National Bank Financial Inc., Beacon Securities Limited and Raymond James Ltd., acting as co-bookrunners, on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters agreed to purchase, on a “bought deal” basis, 3,062,000 common shares of the Company at a price of $14.70 per common share (the “Issue Price”), for aggregate gross proceeds of $45.01 million (the “Offering”). The Underwriters were also granted an option to purchase up to an additional 339,000 common shares at the Issue Price, exercisable in whole or in part, at any time until 30 days after the closing of the Offering for additional gross proceeds of $4.98 million to cover over-allotments, if any, and for market stabilization purposes. On July 29, 2026, the Company announced the successful closing of its previously announced bought deal public offering of 3,401,000 common shares of the Company at a price of $14.70 per common share for aggregate gross proceeds of $49.99 million. This total includes the full exercise of the over-allotment option. In addition to and in connection with the public offering, the Company intends to complete a private placement of up to 139,241 common shares pursuant to the exercise of participation rights held by K inross Gold Corporation (“Kinross”), at the Issue Price, for aggregate gross proceeds of up to approximately $2.05 million. On July 21, 2026, 65,000 unvested stock options and 26,667 restricted share units were forfeited. On July 31,2026, the Company announced the successful closing of a private placement of 139,241 common shares of the Company at a price of $14.70 per common share for aggregate gross proceeds of approximately $2.05 million. In connection with the private placement, the Company i ssued 139,241 common shares to Kinross, upon the exercise of certain participation rights held by Kinross. Subsequent to June 30, 2026, the Company issued 491,850 shares after 605,000 stock options were exercised at a weighted average exercise price of $2.57. The options were exercised using the net exercise procedure, net of withholding taxes and the exercise price cost. On August 10, 2026 the Company c ompleted the US$1,500,000 payment indicated in the Mineral property interest note 7(a) in connection with the Yaretas Project option agreement. - 28 -