Financial statements
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Argenta Silver Corp. Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Expressed in Canadian Dollars) (Unaudited) NOTICE OF NO AUDITOR REVIEW Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited condensed interim consolidated financial statements of Argenta Silver Corp. have been prepared by and are the responsibility of the Company’s management.
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ARGENTA SILVER CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited, expressed in $000s) June 30, 2026 December 31, 2025 $ $ Assets Current Assets Cash 30,098 22,384 Accounts receivable 177 106 Prepaids 507 1,130 Reclamation deposits (Note 5) 114 113 30,896 23,733 Non-current Assets Mineral properties (Note 3) 6,370 6,144 Property and equipment (Note 4) 1,146 1,064 Total Assets 38,412 30,941 Liabilities Current Liabilities Accounts payable and accrued liabilities 1,253 2,654 Provision for environmental liabilities (Note 6) 18 18 1,271 2,672 Non-current Liabilities Decommissioning obligations (Note 7) 2,332 2,204 Total Liabilities 3,603 4,876 Shareholders' Equity Share capital (Note 8(a)) 85,474 64,097 Equity reserve (Note 8(b)) 5,513 3,106 Deficit (56,443) (41,185) Accumulated other comprehensive income 265 47 Total Shareholders' Equity 34,809 26,065 Total Liabilities and Shareholders' Equity 38,412 30,941 Nature of operations and going concern (Note 1) See accompanying notes to the condensed interim consolidated financial statements. Approved on behalf of the Board of Directors: (signed) (signed) Geir Liland D. Jeffrey Harder Director Director
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ARGENTA SILVER CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS For the three and six months ended June 30 (Unaudited, expressed in $000s, except share and per share amounts) 2026 2025 2026 2025 $ $ $ $ Expenses Exploration and evaluation expense (Note 9) 6,142 1,496 10,638 2,090 General and administration expense (Note 10) 1,420 1,144 2,796 1,694 Share-based compensation (Note 8(b)) 565 248 2,151 248 Net finance expense (income) (Note 11) (157) 39 (307) 78 Depreciation (Note 4) 44 31 83 63 (8,014) (2,958) (15,361) (4,173) Other items Loss on provision (Note 8) - (5) - (5) Foreign exchange gain (17) (6) 103 61 Net loss (8,031) (2,969) (15,258) (4,117) Other comprehensive loss Foreign currency translation adjustment 85 (273) 218 (275) Comprehensive Loss (7,946) (3,242) (15,040) (4,392) Loss per share – basic and diluted (0.03) (0.02) (0.05) (0.02) Weighted average number of common shares outstanding - basic and diluted 290,337,502 188,391,355 286,034,545 179,040,841 See accompanying notes to the condensed interim consolidated financial statements. Three months ended Six months ended
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ARGENTA SILVER CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, expressed in $000s) 2026 2025 $ $ Operating Activities Net loss (15,258) (4,117) Items not affecting cash: Share-based compensation 2,151 248 Net finance expense (income) (307) 78 Depreciation 83 63 Unrealized foreign exchange 22 60 Loss on provision - 5 Interest earned on reclamation deposits (2) (2) Net interest income received 353 115 Change in non-cash working capital (Note 14) (849) (681) Cash used in operating activities (13,807) (4,231) Investing Activities Property and equipment additions (124) (36) Cash used in investing activities (124) (36) Financing Activities Proceeds from private placement 23,000 5,000 Transaction costs paid on private placement (1,899) (67) Proceeds on option exercises 510 336 Proceeds on warrant exercises 22 25 Cash provided by financing activities 21,633 5,294 Net change in cash 7,702 1,027 Effect of variation in the foreign exchange rate on cash 12 (53) Change in cash 7,714 974 Cash, beginning of period 22,384 9,062 Cash, end of period 30,098 10,036 See accompanying notes to the condensed interim consolidated financial statements. For the six months ended June 30
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ARGENTA SILVER CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited, expressed in $000s) Number of Common Shares Share Capital Equity Reserve Deficit AOCI (1) Total $$ $$ $ Balance at December 31, 2025 259,014,377 64,097 3,106 (41,185) 47 26,065 Shares issued through private placement 28,750,000 23,000 - - - 23,000 Share issuance costs - (2,503) 604 - - (1,899) Shares issued through option exercise 2,536,250 858 (348) - - 510 Shares issued through warrant exercise 36,875 22 - - - 22 Share-based compensation - - 2,151 - - 2,151 Loss for the period - - - (15,258) - (15,258) Foreign currency translation adjustment - - - - 218 218 Balance at June 30, 2026 290,337,502 85,474 5,513 (56,443) 265 34,809 Balance at December 31, 2024 169,214,377 37,605 3,161 (26,786) 240 14,220 Shares issued through private placement 25,000,000 5,000 - - - 5,000 Shares issued for administrative fees on private plac e 1,000,000 265 - - - 265 Share issuance costs - (332) - - - (332) Shares issued through option exercise 2,100,000 595 (259) - - 336 Shares issued through warrant exercise 155,000 32 (7) - - 25 Share-based compensation - - 248 - - 248 Loss for the period - - - (4,117) - (4,117) Foreign currency translation adjustment - - - - (275) (275) Balance at June 30, 2025 197,469,377 43,165 3,143 (30,903) (35) 15,370 (1) Accumulated other comprehensive income See accompanying notes to the condensed interim consolidated financial statements.
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 5 1. NATURE OF OPERATIONS AND GOING CONCERN Argenta Silver Corp. (the “Company” or “Argenta”) is incorporated under th e Business Corporatio ns Act (British Columbia). The Company’s head office and principal a ddress is 3123 - 595 Burrard Street, Vancouver, British Columbia, Canada, V7X 1J1. The Company lists its common sh ares on Tier 1 of the TSX Venture Exchange (“TSX-V”) under the symbol ‘AGAG’. Argenta’s common shares are also listed on the OTCQX in the United States of America under the symbol “AGAGF” and the Frankfurt Stock Exchange in Germany under the symbol "T1K”. The Company is engaged in the acquisitio n, exploration and development of mineral properties in Argentina. The Company controls a 100% interest in the El Quevar silver pr oject, located in Salta province, Argentina, through the Company’s wholly owned Argentine subsidiary, Silex Argent ina SA (“Silex”). The Company is primarily focused in advancing its exploration and evaluation of the 100% owned El Quevar silver project. Going concern The Company is in the process of explor ing and evaluating its mineral property asset to determine the extent of mineral reserves that are economically recoverable. The recoverability of the amounts shown for mineral properties and continuance of operations is dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain necessary financing to complete the development of those mineral reserves and maintain sufficient working capital, and upon future production or proceeds from the disposition thereof. The Company’s condensed interim consolidated financial statements are prepared on a going concern basis, which contemplates that the Company will continue its operations for at least twelve months and will be able to realize its assets and discharge its liabilities in the normal course of business. The Co mpany had an accumulated deficit of $56,443 and working capital of $29,625 at June 30, 2026 (December 31, 2025 - $41,185 and $21,061, respectively). The Company incurred a loss of $15,258 for the six months ended June 30, 2026 (2025 - $4,117). The Company has relied principally upon the issuance of equity securities to raise funds. Although the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adeq uate financing in the future or that such financing will be on terms that are acceptable to the Company. The Company has not generated revenue fr om operations to date and will requi re additional financing or outside participation to undertake further exploration and subsequent development of its mineral properties. There can be no assurance that the Company will be ab le to raise sufficient financing on ac ceptable terms. Future operations of the Company are dependent upon its ability to raise additional equity financing, maintain sufficient working capital and upon future production or proceeds from the disposition of its mineral properties interest. These condensed interim consolidated financial statements do not includ e any adjustments relating to the recoverability and classification of reco rded asset amounts and classification of liabilities that might be necessary should the Company be unable to cont inue in existence. Management estimates its current working capital will be sufficient to fund its current level of activities for the next twelve months. 2. BASIS OF PRESENTATION (a) Statement of compliance These condensed interim consolidated financial statements were prepared by management in accordance with IFRS Accounting Standards as issued by the International Account ing Standards Board. These condensed interim consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting and follow the same accounting policies and methods of application as the Company’s most recent annual consolidated financial statements. Accordingly, thes e condensed interim consolidated financ ial statements should be read in conjunction with the Company’s annual consolidated financial statements for the year ended December 31, 2025.
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 6 These condensed interim consolidated financial statements for the six months ended June 30, 2026, were authorized for issue by the Board of Directors on August 25, 2026. (b) Basis of measurement The condensed interim consolidated financial statements have been prepared on a historical cost basis except where noted in the accounting policies. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information. (c) Basis of consolidation These condensed interim consolidated financial statements include the financial statements of the Company and its 100% owned subsidiaries: (i) Silex Argentina S.A., a company incorporated under the laws of Argentina. (ii) 1289087 B.C. Ltd., a company incorporated under the Business Corporations Act (British Columbia). Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities . The financial statements of s ubsidiaries, including entities which the Company controls, are included in the consolidated financial stat ements from the date that control commences until the date that control ceases. All intercompany transactions and balances have been eliminated. (d) Functional and presentation currency Items included in the condensed interi m consolidated financial statements of each of the Company's entities are measured using the currency of the primary economic envi ronment in which the entity operates (“the functional currency”). The functional currency of the Company and its Canadian subsid iary is the Canadian dollar. Silex Argentina S.A., the Company’s wholly-owned subsidiary in Argentina, uses the United States dollar as its functional currency. These condensed interim consolidated financial statements are presented in Canadian dollars. (e) Management Estimates and Judgments The preparation of these condensed interim consolidated financial statements requires management to make estimates and use judgments regarding the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the year. By their nature, estimates are subject to measurement uncertainty and changes in such estimates in future years could require a material change in the condensed interim consolidated financial statements. Accordingly, actual results may differ from the estimated amounts as future confirming events occur. Significant estimates and judgments made by management in the preparation of these condensed interim consolidated financial statements are as follows: (i) The Company's assets are reviewed for the indication of impairment at each reporting date in accordance with IFRS 6 - Exploration for and evaluation of mineral resources. Management applies judgment in evaluating if impairment indicators are considered to exist. Factors considered in clude if (i) the right to explore the area has expired or will expire in the ne ar future with no expectation of renewal; (ii) Substantive expenditure on further exploration for and evaluation of mineral resources in the area is neither planned nor budgeted; (iii) No commercially viable deposits have been discovered, and the decision had been made to discontinue exploration in the area ; and (iv) Sufficient work has been
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 7 performed to indicate that the carrying amount of th e expenditure carried as an asset will not be fully recovered. (ii) Amounts recorded for the provision of environmental liabilities require the use of estimates with respect to the amount and timing of reclamation expenditure s for existing wells as part of former oil and gas operations. The ultimate amount and timing of the restoration expenses are uncertain, and cost estimates can vary in response to many factors. Based on a revi ew of the expected timing of future cash flows, it was management’s judgment that the time value of money was not material and therefore did not need to present value the expenditures expected to be required to settle the obligation. (iii) The Company estimates future remediation costs of mineral properties (referred to as decommissioning obligations) at different stages of development and construction of assets or facilities. In most instances, removal of assets occurs many ye ars into the future. This requires assumptions regarding abandonment date, future environmental and regulatory legislation, the extent of reclamation activities, the engineering methodology for estimating cost, future removal te chnologies in determining the removal cost and liability-specific discount rates to determine the present value of these cash flows. (iv) Tax interpretations, regulations and legislation are subject to change. As such, income taxes are subject to measurement uncertainty. Management assesses deferred income tax assets at the end of the reporting period to determine the likelihood that they will be realized from future taxable earnings. (v) Going Concern presentation of the consolidated fi nancial statements which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due. (vi) The determination of whether a set of assets acquired, and liabilities assumed constitute a business may require the Company to make certain judgments, taking into account all facts and circumstances. A business is presumed to be an inte grated set of activities and assets capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or economic benefits. (f) Accounting standards adoptions and pronouncements The Company plans to adopt the following amendments to accounting standards, issued by the IASB, that are effective for annual periods beginning on or after January 1, 2027. The pronouncements are not expected to have a material impact on the financial statements. IFRS 7 and 9 – Financial Instruments Effective January 1, 2026, the Company has prospectively adopted Amendments to the Classification and Measurement of Financial Instruments, as issued May 2024. The amendments relate to IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial Instruments. The amendments clarify the timing of recognition and derecognition of financial assets and liabilities. The amendments require opening balances of financial assets, financial liabilities, and retained earnings be adjusted to recognize the effect of the initial application if re trospective application is not selected. The initial application did not result in a ma terial impact to the Company’s consolidated financial statements. IFRS 18 – Presentation and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements ("IFRS 18") which will replace IAS 1 and includes requirements for all entities applying IFRS Accounting Standards for the presentation and disclosure of information in the financial statements. IFRS 18 will introduce new totals, subtotals and categories for income and expenses in the statements of comprehen sive income, as well as classification changes to the consolidated statements of cash flows. IFRS 18 also requires disclosures of management-defined performance
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 8 measures (“MPMs”) and additional requirements rega rding the aggregation and disaggregation of certain information. The new guidance is expected to improve the usefulness of information presented and disclosed in the consolidated financial statements of companies. IFRS 18 will be effective for annual reporting periods beginning on or after January 1, 2027, and must be adopted on a retrospective basis. The Company is currently assessing system changes, preparing draft disclosures, and planning comparative restatements ahead of the 2027 effective date. 3. MINERAL PROPERTIES Mineral properties comprise all direct costs, including transact ion costs, incurred by th e Company to acquire its mineral properties and to maintain its ownership rights at the El Quevar silver project. Mineral properties consist of the following amounts as at June 30, 2026, and December 31, 2025: El Quevar Project ($000s) Balance, December 31, 2024 13,669$ Revision of asset retirement estimate (Note 7) (6,877) Effect of foreign exchange translation (648) Balance, December 31, 2025 6,144 Effect of foreign exchange translation 226 Balance, June 30, 2026 6,370$ 4. PROPERTY AND EQUIPMENT The Company’s property and equipment comprise mining equipment as well as facilities and surface infrastructure at the El Quevar silver project. Property and equipment co nsist of the following amount s as at June 30, 2026, and December 31, 2025: Computer equipment & software Office equipment & furniture Vehicles Machinery & equipment Camp installations & facilities Total Cost ($000s) Balance, December 31, 2024 7 $ 13 $ 55 $ 177 $ 802 $ 1,054 $ Addi ti ons 47 - - - 169 216 Effect of foreign exchange translation (2) (1) (2) (8) (38) (51) Balance, December 31, 2025 52 12 53 169 933 1,219 Addi ti ons 6 - - 91 27 124 Effect of foreign exchange translation 2 - 1 8 30 41 Balance, June 30, 2026 60 12 54 268 990 1,384 Accumulated depreciation ($000s) Balance, December 31, 2024 - - 3 4 15 22 Addi ti ons 14 2 13 23 81 133 Balance, December 31, 2025 14 2 16 27 96 155 Addi ti ons 9 1 7 19 47 83 Balance, June 30, 2026 23 3 23 46 143 238 Net book value ($000s) Balance, December 31, 2025 38 10 37 142 837 1,064 Balance, June 30, 2026 37 $ 9 $ 31 $ 222 $ 847 $ 1,146 $
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 9 5. RECLAMATION DEPOSIT In January 2018, the Company was required to provide a security deposit to the Alberta Energy Regulator in order for the Company to proceed with the finalization of the reclamation on previously abandoned wells from former operations in the province of Alberta, Canada. These deposits are refundable upon final acceptance of the reclamation certificates by the Alberta Energy Regulator. 6. PROVISION FOR ENVIRONMENTAL LIABILITIES The Company maintains a provision of $1 8 for the completion of reclamation activities on previously abandoned wells on former ownership interest in oil and gas properti es in Alberta, Canada (Dec ember 31, 2025: $18). Costs associated with obligations in Alberta, Canada are projected to be incurred within the next twelve months. As at June 30, 2026, funds have been set aside to settle the obligations in Alberta, Canada (see Note 5). 7. DECOMMISSIONING OBLIGATIONS The Company’s decommissioning obligations result from ownership interests in mineral properties in Argentina. The Company estimates the total uninflated, undiscounted amount of cash flows required to settle its decommissioning obligation at June 30, 2026, to be $3,735 (December 31, 2025 - $3,602). Costs associated with obligations in Argentina are not projected to be incurred until 2054 an d forward. As such, the balance of decommissioning obligations related to mineral properties in Argentina are recorded as a non- current liability given that there is no anticipated obligation expected to be incurred within the next twelve months. Th e decommissioning obligations have been estimated using existing technology at current prices. At June 30, 2026, a US inflation rate of 2.4% and a US risk-free rate of 4.15% were used in the valuation of the liabilities. For decommissioning obligations in Argentina, settlement of the obligations is anticipated to be invoiced in US dollars and settled in Argentine pesos. Changes to decommissioning obligations were as follows: ($000s) Balance, December 31, 2024 9,136$ Accretion expense 386 Change in estimate (6,877) Effect of foreign exchange translation (441) Balance, December 31, 2025 2,204 Accretion expense 46 Effect of foreign exchange translation 82 Balance, June 30, 2026 2,332$ During the year ended December 31, 2025, the Company recognized a change in estimate arising from an anticipated change in the scope of work. Management determined that certain infrastructure is no longer expected to require reclamation and, accordingly, derecognized the associated reclamation costs. This change had a nominal net impact on the Company’s net asset position. 8. SHARE CAPITAL (a) Common shares The Company is authorized to issue an unlimited number of common shares, wi thout nominal or par value, with holders of common shares entitled to one vote per share and to dividends, if declared. Outstanding common shares as at June 30, 2026, are as follows:
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 10 Common shares Amount ($000s) Balance, December 31, 2024 169,214,377 37,605 $ Shares issued through private placement, net of costs 68,750,000 20,106 Shares issued for administrative fees on private placement 1,000,000 265 Exercise of share options 7,875,000 2,715 Exercise of warrants 12,175,000 3,406 Balance, December 31, 2025 259,014,377 64,097 Shares issued through private placement, net of costs 28,750,000 20,497 Exercise of share options 2,536,250 858 Exercise of warrants 36,875 22 Balance, June 30, 2026 290,337,502 85,474 $ January 2026 Private Placement In January 2026, the Company closed a “bought deal” private placement of 28,750,000 common shares of the Company at a price of $0.80 per common share for gross proceeds of $23,000. As co nsideration for services rendered, underwriters received cash fees of $1,380 and 1,725,000 brok er warrants. Each broker warrant is exercisable into one common share of the Company at $0.80 per common share until January 22, 2028. Total share issuance costs of $2,503 in relation to this private placement consisted of paid transaction costs of $1,899 and a fair value of $604 for broker warrants issued. Exercise of Share Options and Warrants During the six months ended June 30 , 2026, 2,536,250 common shares were issued pursuant to the exercise of 2,536,250 share options for proceeds of $510 and the exercise of 36,875 warrants for proceeds of $22. As a result of these exercises, $348 as attributed fair value of thes e share options and $nil as attributed fair value of these warrants was reclassified from equity reserves to share capital. (b) Equity reserve Warrants A summary of the changes in share purchase warrants is presented below: Warrants Weighted average exercise price ($) Balance, December 31, 2024 9,800,000 0.16 Issued - May 2025 pri vate pl acement 5,200,000 0.26 Issued - August 2025 pri vate pl acement 21,875,000 0.60 Issued - broker warrants 2,002,950 0.40 Exercised (12,175,000) 0.25 Balance, December 31, 2025 26,702,950 0.52 Issued - broker warrants 1,725,000 0.80 Exercised (36,875) 0.60 Balance, June 30, 2026 28,391,075 0.54 On January 22, 2026, the Company issued 1,725,000 broker warrants as consideration under a “bought deal” private placement (Note 8(a)). The broker warrants are exercisable at a price of $0.80 per share for a period of two years from the date of issuance, expiring January 22, 2028. The fair value of the broker warrants issued was determined
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 11 to be $604, or $0.35 per broker warrant, using the Black- Scholes option pricing model. The following assumptions were used for the valuation of the warrants: risk-free interest rate of 2.56%, life of approximately 2 years, annualized volatility of 75%, and dividend rate of 0.00%. The following summarizes information about total warrants, outstanding and exercisable, as at June 30, 2026: Exercise prices ($) Outstanding Exercisable Expiry date ### Weighted average term to expiry (years) 0.26 5,200,000 5,200,000 May 1, 2030 ## 3.84 0.40 2,002,950 2,002,950 August 12, 2028 ## 2.12 0.60 19,463,125 19,463,125 August 12, 2028 ## 2.12 0.80 1,725,000 1,725,000 January 22, 2028 ## 1.56 28,391,075 28,391,075 2.40 Share options The Company has established a rolling Share Option Plan (the “Plan”). Under the Plan, the number of shares reserved for issuance may not exceed 10% of the total number of i ssued and outstanding shares and, to any one optionee, may not exceed 5% of the issued shares on a yearly basis. The maximum term of each option shall not be greater than ten years. The exercise price of each option shall not be less than the market price of the Company’s shares at the date of grant. Options granted to consultants performing investor relations activities shall vest over a minimum of twelve months with no more than one quarter of such options vesting in any three-month period. All other options vest at the discretion of the Board of Directors. A summary of the changes in share options is presented below: Share options Weighted average exercise price ($) Balance, December 31, 2024 14,214,000 0.21 Granted 7,199,000 0.29 Exercised (7,875,000) 0.20 Balance, December 31, 2025 13,538,000 0.26 Granted 11,085,000 0.81 Exercised (2,536,250) 0.20 Balance, June 30, 2026 22,086,750 0.54 On January 28, 2026, the Company granted 6,000,000 incentive share options to a certain officer of the Company, exercisable at a price of $0.82 per share until January 28, 2031. The options vest over three years with one quarter vesting immediately and one quarter vesting on each of the first, second, and third anniversaries of the grant date, respectively. Using the Black-Scholes valuation model, the grant date fair value was $0.46 per option. The following weighted average assumptions were used for the valuation of the options: share price of $0.75, risk-free interest rate of 2.94%, option life of 5 years, annualized volatility of 75%, and dividend rate of 0%. On February 13, 2026, the Company granted 5,085,000 in centive share options to ce rtain directors, officers, employees, and consultants of the Company, exercisable at a price of $0.80 per share until February 13, 2031. The options vest over three years with one quarter vesting i mmediately and one quarter vesting on each of the first, second, and third anniversaries of the grant date, respecti vely. Using the Black-Scholes valuation model, the grant date fair value was $0.39 per option. The following weighted average assumpti ons were used for the valuation of the options: share price of $0.66, risk-free interest rate of 2.79%, option life of 5 years, annualized volatility of 75%, and dividend rate of 0%.
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 12 The following summarizes information about the share options, outstanding and exercisable, at June 30, 2026: Exercise prices ($) Outstanding Exercisable Expiry date ### Weighted average term to expiry (years) 0.14 730,000 730,000 May 6, 2034 7.85 0.16 3,220,000 3,220,000 October 24, 2034 8.32 0.29 900,000 900,000 May 15, 2033 6.88 0.30 4,837,750 2,538,250 May 16, 2030 3.88 0.35 150,000 150,000 July 13, 2032 6.04 0.50 1,164,000 1,164,000 October 8, 2030 4.27 0.80 5,085,000 1,271,250 February 13, 2031 4.62 0.82 6,000,000 1,500,000 January 28, 2031 4.58 22,086,750 11,473,500 5.18 The value of the share options vesting in the six months ended June 30, 2026, equaled $2,151 (2025 - $248), which was expensed as share-based compensation. 9. EXPLORATION AND EVALUATION EXPENSE The components of exploration and evaluation expense for the three and six months ended June 30, 2026 and 2025, from continuing operations, are as follows: ($000s) 2026 2025 2026 2025 Field costs, surveys and othe r 3,782 $ 340 $ 6,633 $ 623 $ Wage s and salarie s 664 878 971 996 Transportation and meals 315 138 542 264 Consulting and professional fees 306 89 555 156 Geophysics 220 - 220 - Licenses, taxes and fees 855 51 1,717 51 Total exploration and evaluation expense 6,142 $ 1,496 $ 10,638 $ 2,090 $ Three months ended Six months ended 10. GENERAL AND ADMINISTRATION EXPENSES The components of general and administration expenses for the three and six months ended June 30, 2026 and 2025, are as follows: ($000s) 2026 2025 2026 2025 Marke ting and inve stor re lations 511 $ 214 $ 1,231 $ 324 $ Wages and salaries 329 301 532 411 Advisory and consulting 104 294 194 372 Office and administration 199 111 331 187 Profess i onal fees 104 88 159 162 Business taxes and fees 96 93 167 111 Travel 68 22 98 56 Regulatory and transfer agent 9 21 84 71 Total general and administration expense 1,420 $ 1,144 $ 2,796 $ 1,694 $ Three months ended Six months ended
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 13 11. NET FINANCE EXPENSE (INCOME) The components of net finance expense (income) for the three and six months ended June 30, 2026 and 2025, are as follows: ($000s) 2026 2025 2026 2025 Interest income (198) $ (67) $ (395) $ (132) $ Bank fees 18 11 42 18 A ccre tion on de commissioning obligations 23 95 46 192 Total net finance expense (income) (157) $ 39 $ (307) $ 78 $ Three months ended Six months ended 12. RELATED PARTY TRANSACTIONS The Company incurred consulting fees under the terms of a service agreement from a corporation affiliated with an officer of the Company. For the six months ended June 30, 2026, the Company recognized $7 in expenses for services rendered by the consultant in the period (2025 - $148). As of June 30, 2026, no amounts were payable to the related party (December 31, 2025 - $nil). Compensation of Key Management Key management personnel are those people who have au thority and responsibility for planning, directing, and controlling the activities of the Comp any, directly or indirectly. Senior management personnel include the Company’s executive officers and members of the Board of Directors. Key management personnel compensation during the six months ended June 30, 2026 and 2025, is as follows: ($000s) 2026 2025 Salaries and benefits 175 $ 232 $ Di rector fees 68 - Share-based compensation 1,539 71 Total 1,782 $ 303 $ As of June 30, 2026, there was no balance of management compensation that remained outstanding and payable (December 31, 2025 - $nil). 13. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Fair Value Measurement Financial instruments measured at fair value are classifi ed into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to es timate the fair values. The three levels of the fair value hierarchy are: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices that are obse rvable for the asset or liability either directly or indirectly; and Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumption that market participants would use in pricing.
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 14 The Company’s financial instruments consist of cash, accounts receivable, reclamation deposits and accounts payable and accrued liabilities. Their carrying values approximate fair valu e due to the short-term nature of these instruments. Financial Risk Factors (a) Credit Risk Credit risk arises from the potential for non-performance by counterparties of contractual financial obligations. The Company is exposed to credit risk on ca sh and accounts receivable. The Company reduces its credit risk on cash by maintaining its bank a ccount with a large internationa l financial institution. Furth ermore, the majority of the Company’s receivables relate to tax receivable due from the Government of Canada and the Argentine Republic. (b) Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due and describes the Company’s ability to access cash. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient cash resources to fi nance operations, fu nd capital expenditu res, and to repay debt and other liabilities of the Company as they come due without incurring unacceptable losses or risking harm to the Company’s reputation. The Company’s processes for managing liquidity risk include preparing and monitoring capital and operating budgets, coordinating and authorizing project expenditures, and authorization of contractual agreements. The Company seeks additional financing based on the results of these processes (see also Note 1). The budgets are updated when required as conditions change. As of June 30, 2026, the Company curre ntly had cash and cash equivalents of $30,098 an d current liabilities of $1,271. (c) Market Risk Market risk is the risk or uncertainty that changes in pric e, such as commodity prices, foreign exchange rates, and interest rates will affect the Company’s net earnings and the value of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable limits, while maximizing returns. From time to time, the Company may utilize financial derivative contracts to manage market risks in accordance with the risk management policy that has been approved by the Board of Directors. There were no financial derivative contracts or embedded derivatives outstanding at June 30, 2026, and December 31, 2025. Interest Rate Risk The Company is nominally exposed to interest rate risk. The Company’s cash earns interest at variable rates. Interest rate exposure is considered to be insignificant. Foreign Currency Risk Foreign currency risk is the risk that the fair value of future cash flows will fluctuate as a result of changes in foreign currency exchange rates. Some of the Company’s business transactions and commitments occur in currencies other than the Canadian dollar. A portion of the Company’s mining activities in Argentina transact in Argentine Peso (ARS$) or US dollars. In addition, a portion of the Company’s administrative costs will be based and paid in ARS$. Therefore, the Company is exposed to the risk of fluctuations in foreign exchange rates between Canadian dollars, US dollars, and ARS$. As at June 30, 2026, the Company had not entered into any foreign currency derivatives to manage its exposure to currency fluctuations, nor were there any foreign currency derivatives as at the previous year ended December 31, 2025.
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Argenta Silver Corp. Notes to the Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2026 and 2025 (Unaudited, expressed in thousands of Canadian Dollars, except share and per share amounts or as otherwise noted) Page | 15 Price Risk The Company is exposed to price risk wi th respect to equity prices. Equity price risk is defined as the potential adverse impact on the Company’s earnings due to movements in individual equity prices or general movements in the level of the stock market. The Company closely monitors individual equity movements and the stock market to determine the appropriate course of action to be taken by the Company. Capital Management The Board of Directors has overall responsibility for th e establishment and oversight of the Company’s risk management framework. The Company’s objective when managing capital is to safeguard the Company’s ability to continue as a going concern such that it can continue to provide returns for shareholders and benefits for other stakeholders. The Company considers the items included in shareholders ’ equity as capital. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions, business opportunity and the risk characteristics of the underlying assets. In order to maintain or adjust its capital structure, the Company may issue new shares or return capital to its shareholders. Th e Company is not subject to externally imposed capital requirements. Management reviews its capital management approach on an ongoing basis. There was no change in the Company’s management of capital policies during the periods presented. 14. SUPPLEMENTAL CASH FLOW INFORMATION Information regarding changes in non-cash working capital for the six months ended June 30, 2026 and 2025, is as follows: ($000s) 2026 2025 A ccounts re ce ivable (71) $ 13 $ Prepaids 623 (662) V A T re ce ivable - (252) A ccounts payable and accrue d liabilitie s (1,401) 220 Change in non-cash working capital (849) (681) Relating to: Operating activities (849) (681) Change in non-cash working capital (849) $ (681) $