Financial statements
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Chesapeake Gold Corp. Condensed Consolidated Interim Financial Statements For the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated)
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Chesapeake Gold Corp. Condensed Consolidated Interim Statements of Financial Position (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) The accompanying notes are an integral part of these condensed consolidated interim financial statements. 1 Subsequent events (Note 13) Approved by the Board of Directors “P.Randy Reifel” Director “Jeff Stieber” Director 30-Jun-26 31-Dec-25AssetsCurrent assetsCash and cash equivalents 24,482 10,651 Other receivables - VAT4961 1,101 Other receivables and prepaid expenses 4501 550 Marketable securities 5(a)606 406 Total current assets 26,550 12,708 Long-term investments5(b)668 979 Exploration and evaluation assets6160,471 153,691 Equipment29 34 Reclamation deposits443 429 Total assets 188,161 167,841 LiabilitiesCurrent liabilitiesAccounts payable and accrued liabilities 2,005 1,918 Total current liabilities 2,005 1,918 Deferred income tax liabilities10,722 10,722 Decommissioning obligation435 421 Total liabilities 13,162 13,061 Shareholders’ equityShare capital 7260,013 241,919 Reserves836,429 32,029 Deficit(125,956) (123,506) Shareholders’ equity – attributable to the shareholders170,486 150,442 Non-controlling interest 14,513 4,338 Total shareholders’ equity 174,999 154,780 Total liabilities and shareholders’ equity 188,161 167,841 As atNote
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Chesapeake Gold Corp. Condensed Consolidated Interim Statements of Loss and Comprehensive Income (Loss) (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) The accompanying notes are an integral part of these condensed consolidated interim financial statements. 2 30-Jun-26 30-Jun-25 30-Jun-26 30-Jun-25General and administrative expensesDepreciation(4) (3) (7) (6) Exploration6c551 (35) - (60) General and administrative(720) (593) (1,534) (1,027) Management fees(63) (63) (125) (125) Professional fees(370) (288) (555) (417) Stock-based compensation 8(473) (77) (559) (156) Total general and administrative expenses (1,079) (1,059) (2,780) (1,791) Other income (expense)Finance income150 52 197 114 Foreign exchange gain (loss)90 (7) 400 (32) Unrealized gain (loss) on marketable securities and long-term investments5263 (93) (106) 22 Other income (expense)- 193 - 193 Total other income (expense) 503 145 491 297 Net loss (576) (914) (2,289) (1,494) Other comprehensive incomeItems that may be reclassified subsequently to net loss:Cumulative translation adjustment952 671 3,292 1,328 Total comprehensive income (loss) 376 (243) 1,003 (166) Net gain (loss) attributable toControlling equity holders of the Company(816) (889) (2,450) (1,462) Non-controlling interest 1, 6c240 (25) 161 (32) Total net loss (576) (914) (2,289) (1,494) Total comprehensive income (loss) attributable toControlling equity holders of the Company136 (218) 842 (134) Non-controlling interest1 240 (25) 161 (32) Total comprehensive income (loss) 376 (243) 1,003 (166) Loss per common shareBasic and diluted(0.01) (0.01) (0.03) (0.02) Weighted average shares outstanding (000’s)Basic and diluted76,886 68,743 76,171 69,085 NoteThree Months Ended Six Months Ended
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Chesapeake Gold Corp. Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity for the Six Months Ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) The accompanying notes are an integral part of these condensed consolidated interim financial statements. 3 Share Total forcapital ownersBalance at January 1, 2026 72,094 241,919 29,042 2,987 (123,506) 150,442 4,338 154,780 Net loss for the period - - - (2,450) (2,450) 161 (2,289)Cumulative translation adjustment - - 3,292 - 3,292 - 3,292 Units issued for cash (net of expenses) 7 4,792 18,657 - - - 18,657 - 18,657 Broker warrants issued (share issuance costs)7 (563) 563 - - - - - Stock-based compensation charges - 545 - - 545 14 559 Balance at June 30, 2026 76,886 260,013 30,150 6,279 (125,956) 170,486 4,513 174,999 Balance at January 1, 2025 68,394 237,503 28,655 299 (120,287) 146,170 2,359 148,529 Net loss for the period - - - (1,462) (1,462) (32) (1,494)Cumulative translation adjustment - - 1,328 - 1,328 - 1,328 Units issued for cash 3,700 4,440 - - - 4,440 4,440 Stock-based compensation charges - 141 - - 141 15 156 Balance at June 30, 2025 72,094 241,943 28,796 1,627 (121,749) 150,617 2,342 152,959 DeficitNon-controlling TotalNotes Shares SBC reserveFX reserve
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Chesapeake Gold Corp. Condensed Consolidated Interim Statements of Cash Flows (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) The accompanying notes are an integral part of these condensed consolidated interim financial statements. 4 See Note 6, 7 and 8 for a summary of non-cash transactions. 30-Jun-26 30-Jun-25Cash flows used in operating activitiesNet loss for the period(2,289) (1,494) Items not affecting cashDepreciation7 6 Unrealized foreign exchange gain- (7) Unrealized loss (gain) on marketable securities and long-term investments5106 (22) Share-based compensation expense8559 156 Other receivables and prepaid expenses244 (40) Accounts payable and accrued liabilities(42) (433) Total cash flows used in operating activities (1,415) (1,834) Cash flows from financing activitiesNet proceeds from issue of units718,657 4,440 Total cash flows from financing activities 18,657 4,440 Cash flows used in investing activitiesProceeds from sale of marketable securities5 19 Reclamation bonds- (56) Exploration and evaluation expenditures6(3,428) (1,422) Total cash flows used in investing activities (3,423) (1,459) Foreign exchange impact on cash and cash equivalents12 5 Increase (decrease) in cash and cash equivalents 13,831 1,152 Cash and cash equivalents - beginning of period 10,651 10,989 Cash and cash equivalents - end of period 24,482 12,141 NoteSix Months Ended
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 5 1. Nature of operations Chesapeake Gold Corp. (“Chesapeake” or the “Company”) is a Canadian exploration and evaluation stage mining company focused on the exploration and development of precious metal deposits in North and Central America. The Company has exploration and evaluation assets and does not generate mining revenues from operations. The Company’s operations are principally directed towards the development of the Metates project in the state of Durango, Mexico and generating a pipeline of regional exploration projects in the region. The Company is domiciled in Vancouver, Canada and its common shares are listed on the TSX Venture Exchange under the trading symbol “CKG.V”. The Company also trades on the OTCQX marketplace in the United States, under the symbol “CHPGF”. The Company’s head office is located at 201 – 1512 Yew Street, Vancouver BC, Canada. As at June 30, 2026, the Company owns 57% (December 31, 2025 – 57%) of Gunpoint Exploration Ltd. (“Gunpoint”), a Vancouver based company listed on the TSX Venture Exchange, symbol “GUN.V”. Gunpoint owns 100% of the Talapoosa gold project, located in Nevada, United States. During the six months ended June 30, 2026, the Company incorporated Chesapeake Royalties Corp., a wholly owned subsidiary incorporated under the laws of British Columbia, Canada. The subsidiary was established for future corporate purposes and had not commenced operations as at June 30, 2026. The Company had a consolidated net loss of $2,289 (2025 – net loss of $1,494) for the six months ended June 30, 2026, and an accumulated deficit of $125,956 as at June 30, 2026 (December 31, 2025 - $123,506). The Company’s working capital (current assets less current liabilities) as at June 30, 2026 is $24,545 (December 31, 2025 - $10,790) which included cash of $24,482 (December 31, 2025 - $10,651). Management believes that it has sufficient funds, following the two financings for gross proceeds of $20,127 closed in January 2026, to maintain the status of its properties in good standing, to pay its ongoing general and administrative expenses and to meet its other liabilities, obligations and existing commitments beyond the ensuing twelve months as they fall due. The Company has the ability to scale its exploration activities and capital expenditures, and will do so as necessary, based on cash availability. The Company will need to raise further financing to fund its future operations and its development expenditures. 2. Basis of presentation These unaudited condensed consolidated interim financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board applicable to the preparation of interim financial statements, under International Accounting Standard ("IAS") 34 - Interim Financial Reporting and have been condensed with certain disclosures from the Company's audited consolidated financial statements for the year ended December 31, 2025 (the "2025 Annual Financial Statements") omitted. These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2025. The Company’s management makes judgments in its process of applying the Company’s accounting policies in the preparation of its unaudited condensed consolidated interim financial statements. In addition, the preparation of the financial data requires that the Company’s management make assumptions and estimates of the effects of uncertain future events on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively. The critical judgments and estimates applied in the preparation of the Company’s unaudited condensed consolidated interim financial statements are consistent with those applied and disclosed in the Company’s consolidated financial statements for the year ended December 31, 2025. In addition, the accounting policies applied in these unaudited condensed consolidated interim financial statements are consistent with those applied and disclosed in the Company’s audited financial statements for the year ended December 31, 2025. The Company’s interim results are not necessarily indicative of its results for a full year.
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 6 These unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board of Directors on August 25, 2026. These unaudited condensed consolidated interim financial statements have been prepared on a historical cost basis except for certain financial instruments which are measured at fair value. 3. Material accounting policies The accounting policies applied in the preparation of these condensed consolidated interim financial statements are consistent with those applied and disclosed in notes 2, 3 and 4 to the Company’s audited consolidated financial statements for the year ended December 31, 2025. In May 2024, the IASB issued amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. These amendments, effective January 1, 2026, did not result in any changes to the Company’s consolidated financial statements. New standards issued but not yet effective Presentation and Disclosures in Financial Statements (IFRS 18) Effective January 1, 2027, IFRS 18 introduces new requirements for the presentation and disclosure of financial information. The Company is currently evaluating the potential impact of IFRS 18 on its consolidated financial statements. While the full implications are yet to be determined, the standard is expected to enhance the transparency and comparability of financial disclosures. The Company will adopt IFRS 18 in accordance with its effective date and provide further updates in subsequent reporting periods. 4. Other receivables and prepaid expenses Value added taxes (“VAT”) paid in Mexico are fully recoverable. However, due to the complex filing requirements surrounding VAT recoveries, timing of receipt of refunds is uncertain. The Company uses judgment to classify current and non-current portions of its VAT such as the regularity of payments received, discussions with and communications from Mexican tax authorities and expected length of time for refunds in accordance with Mexican tax authorities. Based on improved recovery patterns and the expectation that these balances will be realized within twelve months of the reporting date, certain amounts previously classified as non-current have been reclassified to current assets since the quarter ended December 31, 2025. 5. a) Marketable securities Marketable securities are publicly traded stocks. 30-Jun-26 31-Dec-25Other receivables380 216 Prepaid expenses121 334 VAT receivable961 1,101 1,462 1,651 31-Dec-25 30-Jun-26Fair Value Fair ValueMarketable securities406 - (5) 205 606 31-Dec-24 31-Dec-25Fair Value Fair ValueMarketable securities 636 1,192 (1,855) 433 406 Acquired and Fx Proceeds from saleRealized and unrealized Gain/(loss)Acquired and Fx Proceeds from saleRealized and unrealized Gain/(loss)
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 7 5. b) Long-term investments Long-term investments are investments that management does not have any intent to sell within a year. On November 12, 2025, the Company completed the sale of its Tatatila project to Mexican Gold Mining Corp (“Mexican Gold”) and acquired 4,451,361 common shares of Mexican Gold (“Consideration Shares”) for $512 as part of the consideration. These Consideration Shares were fair valued at $668 as at June 30, 2026 ($979 as at December 31, 2025). The Consideration Shares shall be subject to a lock up (the “Lock Up”), in addition to the statutory four month and one day hold period commencing on the date of the issuance. On the one (1) year anniversary of the date of issuance and every six (6) months thereafter, 25% of the Consideration Shares shall be released from the Lock Up such that all Consideration Shares shall be released from Lock Up two and a half (2.5) years from the date of issuance. Chesapeake has also agreed for a period of two and one-half (2.5) years to vote the Consideration Shares in accordance with Mexican Gold management instructions. 6. Exploration and evaluation assets a. Metates Project The Company’s Metates project (“Metates”) is located in Durango State, Mexico and is subject to a 0.5% net smelter royalty (the “Metates NSR”) held by Wheaton Precious Metals Corp. (“WPM”) for which the Company holds a right of first refusal to purchase in the event WPM elects to sell the Metates NSR to a third party, on the same terms and conditions as the third party’s offer. The terms of the Metates NSR grant a right of first refusal to WPM on any future silver stream or royalty which the Company receives and accepts, on the same terms and conditions as the third party’s offer. In 2023, the Dirección General de Minas of Mexico (the “DGM”) cancelled the San Vicente 3 mineral concession on the basis that the Company did not provide adequate evidence to support the Company’s performance of the exploration work required to maintain the concession. The San Vicente 3 mineral concession is one of 12 mineral concessions comprising the Metates property, representing 700 hectares of the 4,260 hectares in the Metates project, and encompasses Metates(a, b)Regional(d)Talapoosa (c) TotalDecember 31, 2024 137,768 4,453 5,611 147,832 Effect of foreign exchange on translation 2,250 478 - 2,728 Assays 1 90 - 91 Concession acquisition 171 417 378 966 Community, taxes, camp and supplies433 21 - 454 Environmental23 2 - 25 Geological and engineering 2,586 266 - 2,852 Travel 131 35 - 166 Other - (1,423) - (1,423) December 31, 2025 143,363 4,339 5,989 153,691 Effect of foreign exchange on translation2,853 499 - 3,352 Assays- 9 - 9 Concession acquisition91 84 - 175 Community, taxes, camp and supplies94 15 - 109 Environmental30 6 - 36 Geological and engineering1,727 347 674 2,748 License, dues and fees- - 264 264 Travel71 16 - 87 June 30, 2026 148,229 5,315 6,927 160,471
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 8 a portion of the Metates mineral resource. The Company’s legal position, supported by external Mexican counsel, is that the work required to maintain the concession was conducted on the property and appropriate evidence was submitted to the DGM to substantiate the work. On May 3, 2023, the Company began nullity proceedings to have the cancellation of San Vicente 3 declared as null and void by the North Center III and Auxiliary Regional Chamber of the Federal Court of Administrative Justice (the "Chamber") in the state of Durango, Mexico on the basis that the DGM failed to comply with mandated cancellation procedures in accordance with applicable legislation. The Chamber dismissed the Company's lawsuit in a 2-1 split decision. The Company has appealed the decision to the Collegiate Court on the basis that the Chamber had erroneously found that the DGM had complied with mandated cancellation procedures and, therefore, it violated the Company’s fundamental rights such as due process and effective judicial protection. The Company continues to pursue all legal remedies available to it to protect and defend its position with respect to San Vicente 3. The DGM has been barred by an Appellate Court from carrying out a bidding process for said mineral concession until a definitive decision is reached. While the Company is confident that it will be successful in reinstating its ownership of the concession, there can be no assurance of this. In the event the Company is unsuccessful, the current resource estimate and the mine development plan for Metates as proposed in the Company’s 2023 Amended PEA will be materially affected and the Company’s ability to develop the Metates project will be materially affected. Reliance on the 2023 Amended PEA is therefore contingent on the outcome of the litigation. As of June 30, 2026, $98,632 (December 31, 2025 - $93,766) relate to Metates project development costs while $49,597 (December 31, 2025 - $49,597) relate to acquisition costs in connection with the sulphide leaching technology. b. License and evaluation of technical feasibility On January 19, 2021, the Company closed the acquisition of Alderley Gold Corp (“Alderley Gold”), a private British Columbia company (that was previously controlled by the former CEO of Chesapeake Gold). Through the acquisition of Alderley Gold, the Company gained access to the mining technology (“Technology”) that is currently being used to determine the technical and commercial feasibility of the Metates project. Under the terms of the Agreement, the Company issued 10,000,000 common shares (fair value of $45,000) (the “Alderley Shares”) to the shareholders of Alderley Gold. The Alderley Shares were placed in escrow and will be released based on time or milestone conditions over 7 years as follows: i. 5% released on each of the first four anniversaries of January 19, 2021 (“Closing Date”), resulting in the release of 2,000,000 common shares as of December 31, 2025; ii. 10% released on the earlier of: (a) date of a positive feasibility study or (b) the fifth anniversary of Closing Date (January 19, 2026); iii. 30% released on the earlier of: (a) duly certified commencement of construction of a mine or (b) the sixth anniversary of Closing Date (January 19, 2027); and iv. 40% released on the earlier of: (a) duly certified commencement of commercial production or (b) the seventh anniversary of Closing Date (January 19, 2028). v. All Alderley Shares will be released upon a change of control (“COC”) of the Chesapeake Gold Corp. For greater clarity, if COC occurs, the Alderley Shares will be released and not follow the escrow schedule noted in (i)(ii)(iii)(iv). On June 4, 2024, the Company, through its wholly owned subsidiary Alderley Gold, acquired the patents, patent applications, and certain other technology rights and assets for the sulphide leaching technology from Hycroft Mining Holding Corp. and its wholly owned subsidiaries. On closing, Chesapeake paid $2-million in cash and issued 1,026,518 common shares of the Company valued at $2,597 on the date of the closing. c. Talapoosa Gunpoint owns a 100% interest in the Talapoosa property (“Talapoosa”), which is subject to a lease agreement with a third party (the “Unpatented Leased Land”). These claims are administered by the Bureau of Land Management (“BLM”) and the annual maintenance fees for these claims payable to the BLM are approximately $116 (US$88). In addition, there are certain payments required for the land owned subject to leases with private landowners (the “Fee Leased Land”). The current annual payments for Fee Leased Land are approximately $90 (US$68).
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 9 During the three months ended June 30, 2026, the Company capitalized $551 of qualifying exploration and evaluation expenditures previously incurred, which resulted in a $551 credit to exploration and evaluation expense in the current quarter. Of this amount, $237 was attributable to non-controlling interests and $314 was attributable to shareholders of the Company. The capitalized amount of $551 offsets a corresponding expense recognized in the first quarter of 2026, resulting in $nil expense for the six-month period ended June 30, 2026. d. Regional El Duraznito (Durango State, Mexico) On March 3, 2020, the Company announced an option to acquire a 100% interest in the El Duraznito gold-silver project ("El Duraznito") located near the town of Tayoltita in Durango State, Mexico. El Duraznito is located east of First Majestic Silver Corp.'s San Dimas Mine ("San Dimas"). At present, Chesapeake has an option agreement over one of El Duraznito Claims (“Teresa”). In 2024, the Company paid US$78 ($93) to earn 60% of the rights. After completion of the feasibility study, Chesapeake will pay US$100 to earn an additional 20% interest in the project. Upon commencement of mine construction, the Company will have acquired 100% interest in the Teresa claim with a final payment of US$150. The Teresa option agreement continues to be in good standing. In late 2025, the Company concluded negotiations with the holders of a claim adjacent to Duraznito and acquired the Ursina mineral concession. Lucy (Sinaloa State, Mexico) Lucy was staked by Chesapeake in 2017 and the Company completed mapping, trenching and channel sampling in 2021 and 2022, which identified the presence of a gold-bearing skarn system. The Company is continuing to explore the property during 2026. Nicole (Durango State, Mexico) The Nicole Project is located north of the Company’s flagship Metates project. In 2025, the Company received the Environmental drilling permit for Nicole. The Company is currently undertaking limited exploration activity on the project. Crisy (Durango State, Mexico) The Crisy project is located south-east of the Company’s flagship Metates project. During the year ended December 31, 2023, the Company completed its payments per the earn-in option agreement to own 100% of the mineral claim. The Company is currently undertaking limited exploration activity on the project. Tatatila (Veracruz State, Mexico) On November 12, 2025, the Company closed the sale of the Tatatila project to Mexican Gold. As per the terms of this sale agreement, the Company acquired 4,451,361 common shares of Mexican Gold, representing 14.99% of the outstanding Mexican Gold common shares on an undiluted basis. The Company also received a 1.5% net smelter return royalty. Mexican Gold may repurchase 0.5% of the Royalty (reducing the Royalty to 1.0%) for US$500 within ten (10) years from the date of execution of the agreement. e. Impairment During the six months ended June 30, 2026, there was no impairment on any of the Company’s exploration assets. 7. Share capital The Company’s authorized share capital consists of an unlimited number of common shares without par value and an unlimited number of Series 1 Class A restricted voting shares without par value, convertible and redeemable at $0.01 per share and an unlimited number of preferred shares without par value. As at June 30, 2026, 7,000,000 (December 31, 2025 – 8,000,000) common shares were held in escrow, subject to release per escrow conditions in Note 6(b) and upon approval of the regulatory authorities.
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 10 As at June 30, 2026, the Company had 4,482,570 warrants outstanding, detailed as follows: Six months ended June 30, 2026 On January 27, 2026, the Company closed a bought deal public offering of 4,107,225 units at a price of $4.20 per unit for aggregate gross proceeds of $17,250, which included the full exercise of the over-allotment option. Each unit consisted of one common share of the Company and one-half of one Common Share purchase warrant. Each warrant entitles the holder thereof to purchase one Common Share at a price of $5.65 until January 27, 2029. Concurrent with the bought deal offering, the Company completed a $2,877 non-brokered private placement of 685,000 units with 2176423 Ontario Ltd., a corporation beneficially owned by Eric Sprott, as the sole investor, on the same terms and conditions as the bought deal offering. In aggregate, the Company raised gross proceeds of $20,127 from these financings and issued 2,396,112 warrants. The Company applied the residual method to allocate the proceeds to common shares and warrants and concluded no value was allocated to warrants. Additionally, the Company issued 236,458 broker warrants as compensation to certain brokers. Each broker warrant entitles the holder to acquire one common share of the Company at an exercise price of $4.20 per share until January 27, 2029. The broker warrants were measured at $563, which was their grant date fair value using the Black-Scholes option pricing model. The fair value of the broker warrants was recorded as a share issue cost within equity, with a corresponding credit to reserves. Year ended December 31, 2025 On June 13, 2025, the Company issued 3,700,000 units at $1.20 per unit which consisted of one common share and one- half share purchase warrant for gross proceeds of $4,440. Each whole warrant is exercisable for one share of the Company at a price of $1.65 for a period of three years. The Company applied the residual method to allocate the proceeds to common shares and warrants and concluded no value was allocated to warrants. 8. Share-based compensation On August 6, 2025, the Company adopted a fixed up-to-10-per-cent stock option plan to replace its prior rolling up-to- 10-per-cent stock option plan. All outstanding options granted under the prior plan will continue to remain issued and governed under the terms of the fixed plan. Under the terms of the fixed plan, the Company may issue up to 7,209,338 (December 31, 2025 – 7,209,338) common shares of the Company which may be granted to eligible optionees from time to time. Generally, share options granted have a maximum term of five years, and a vesting period and exercise price determined by the directors. The exercise price may not be less than the closing quoted price of the Company’s common shares traded through the facilities of the exchange on which the Company’s common shares are listed. As at June 30, 2026, the remaining share options available for issue under the plan were 4,115,338 (December 31, 2025 – 6,015,338). On February 26, 2025, the Company granted stock options under its stock option plan to purchase an aggregate of 100,000 common shares of the Company at an exercise price of $1.00 per share for a five-year term, expiring February 26, 2030. The stock options were granted to an officer of the Company. The options will vest and be exercisable on the basis of 25% annually, commencing February 26, 2026, the first anniversary of the date of the grant. The fair value of the options granted was $63 which will be recognized over the vesting period. On December 19, 2025, the Company granted stock options under its stock option plan to purchase an aggregate of 69,000 common shares of the Company at an exercise price of $2.84 per share for a five-year term, expiring December 19, 2030. The stock options were granted to officers of the Company. The options vested immediately and $154 being the fair value of the options granted was expensed during the year ended December 31, 2025. Grant date Number of Warrants Price Per Share ($) Expiry DateRemaining Life (Years)13-Jun-25 1,850,000 1.65 13-Jun-28 1.96 27-Jan-26 2,396,112 5.65 27-Jan-29 2.58 27-Jan-26 236,458 4.20 27-Jan-29 2.58 Total 4,482,570 3.92 2.32
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 11 On January 5, 2026, the Company granted stock options under its stock option plan to purchase an aggregate of 100,000 common shares of the Company at an exercise price of $4.24 per share for a five-year term, expiring January 5, 2031. The stock options were granted to an officer of the Company. The options will vest and be exercisable on the basis of 25% annually, commencing January 5, 2027, the first anniversary of the date of the grant. The fair value of the options granted was $330 which will be recognized over the vesting period. On May 7, 2026, the Company granted stock options under its stock option plan to purchase an aggregate of 2,200,000 common shares of the Company at an exercise price of $3.40 per share for a five-year term, expiring May 7, 2031. The stock options were granted to the directors and a consultant of the Company. The options will vest and be exercisable on the basis of 25% annually, commencing May 7, 2027, the first anniversary of the date of the grant. The fair value of the options granted was $5,017 which will be recognized over the vesting period. The fair value of stock options granted have been estimated using the Black-Scholes option pricing model assuming no expected dividends or forfeitures and the following weighted average assumptions: The following table discloses the number of options and vested options outstanding as at June 30, 2026: During the six months ended June 30, 2026, the Company recognized $559 (2025 - $156) as share-based compensation expense, of which $545 (2025 - $141) relates to the Company and $14 (2025 – $15) related to the NCI of Gunpoint. The weighted average contractual life of outstanding stock options as at June 30, 2026 was 4.24 years (December 31, 2025 – 2.52 years). June 30, 2026 June 30, 20253.16%2.70%5582%80%$3.44 $1.00Risk-free interest rateExpected life (years)Expected volatilityWeighted average stock price Six-months endedNumber of options (000's)Weighted average exercise price ($)Number of options (000's)Weighted average exercise price ($) 944 2.40 2,425 3.68 2,300 3.44 169 1.75 (150) 4.55 (1,650) 4.22 3,094 3.07 944 2.40 Dec 31, 2025Outstanding - beginning of the periodGrantedForfeited/ExpiredOutstanding - end of the periodJune 30, 2026 Number of options ('000s) Number of options vested('000s) Exercise price Expiry Date 40 30 1.92 28-Sep-27 200 150 2.15 7-Feb-28 20 15 2.70 28-Apr-28 100 75 1.70 31-May-28 200 100 2.20 4-Dec-28 65 16 1.80 5-Nov-29 100 25 1.00 26-Feb-30 69 69 2.84 19-Dec-30 100 - 4.24 5-Jan-31 2,200 - 3.40 7-May-31 3,094 480 3.07
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 12 9. Related party transactions The Company’s related parties include its subsidiaries and key management. Transactions with related parties for goods and services are made on normal commercial terms in the normal course of operations. Short-term employee benefits include salaries payable within twelve months of the statement of financial position date and other annual employee benefits. The Company incurred the following expenses with related parties during the three and six months ended June 30, 2026 and 2025: Management fees were paid or accrued to a private company owned by the Executive Chairman of the Company. Consulting fees were paid or accrued to a director of the Company. As at June 30, 2026, the Company had amounts payable of $44 to related parties (December 31, 2025 - $Nil). These amounts are unsecured and non-interest bearing, due on demand and are included in accounts payable and accrued liabilities. On January 19, 2021, the Company closed the acquisition of Alderley Gold, a private British Columbia mining technology company (that was previously controlled by the former CEO of the Chesapeake Gold Corp.). Through the acquisition of Alderley Gold, the Company gained access to the Technology that is currently being used to determine the technical and commercial feasibility of the Metates project. 7,400,000 shares were issued to a company controlled by the former CEO. The remaining 2,600,000 shares were issued to non-related parties. As at June 30, 2026, 5,180,000 shares issued to a Company controlled by the former CEO are still held in escrow. 10. Capital management The capital of the Company consists of items included in shareholders’ equity net of cash. The Company’s objectives for capital management are to safeguard its ability to support the Company’s normal operating requirement on an ongoing basis, continue the development and exploration of its mineral properties, and support any expansionary plans. The capital of the Company consists of items included in shareholders’ equity (excluding NCI), net of cash as follows: The Company manages its capital structure and makes adjustments in light of changes in its economic environment and the risk characteristics of the Company’s assets. To effectively manage the entity’s capital requirements, the Company has in place a planning, budgeting and forecasting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. As at June 30, 2026, the Company expects its capital resources will support its normal operating requirements, planned development and exploration of its mineral properties for the next twelve months. There are no externally imposed capital requirements to which the Company has not complied. There were no changes in the Company’s approach to capital management during the six months ended June 30, 2026. 30-Jun-26 30-Jun-25 30-Jun-26 30-Jun-25Professional fees - consulting95 100 190 185 General and administration – salary262 70 531 140 General and administration – directors’ fees66 93 132 168 Management fees 63 63 125 125 Share-based compensation expense 458 54 529 110 Six Months EndedThree Months Ended 30-Jun-26 31-Dec-25Total equity for owners 170,486 150,442 Cash (24,482) (10,651) 146,004 139,791
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 13 11. Segment disclosures The Company operates in one operating segment (Note 1) in three countries. Details of the investments in exploration and evaluation assets are disclosed in Note 6. The Company’s assets by country are: 12. Financial instruments and risk management Fair values of financial instruments The carrying values of cash and cash equivalents, other receivables, reclamation deposits, accounts payable and accrued liabilities approximate their fair values due to their short-term nature. Marketable securities and long-term investments are measured at fair value based on quoted market prices. Fair value measurements The following table sets forth the Company’s assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. June 30, 2026 Canada Mexico USA TotalCash and cash equivalents 23,676 289 517 24,482 Other receivables - VAT - 961 - 961 Other receivable and prepaid expenses 300 196 5 501 Marketable securities 204 - 402 606 Long-term investment 668 - - 668 Exploration and evaluation assets 54,423 99,121 6,927 160,471 Equipment - 29 - 29 Reclamation deposit - - 443 443 Total assets 79,271 100,596 8,294 188,161 December 31, 2025 Canada Mexico USA TotalCash and cash equivalents 10,052 97 502 10,651 Other receivables - VAT - 1,101 - 1,101 Other receivable and prepaid expenses 393 152 5 550 Marketable securities 406 - - 406 Long-term investment 979 - - 979 Exploration and evaluation assets 53,108 94,594 5,989 153,691 Equipment - 34 - 34 Reclamation deposit - - 429 429 Total assets 64,938 95,978 6,925 167,841 Total 30-Jun-26606 - - 606 Long-term investments 668 - - 668 1,274 - - 1,274 Total 31-Dec-25406 - - 406 Long-term investments 979 - - 979 1,385 - - 1,385 Level 1 Level 2 Level 3Marketable securitiesLevel 1 Level 2 Level 3Marketable securities
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Chesapeake Gold Corp. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited - amounts expressed in thousands of Canadian dollars, except where indicated) 14 The Company’s policy for determining when a transfer occurs between levels in the fair value hierarchy is to assess the impact at the date of the event or the change in circumstances that could result in a transfer. There were no transfers between the levels during the six months ended June 30, 2026 or the year ended December 31, 2025. Credit Risk Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents. The Company’s cash and cash equivalents are held primarily through large Canadian financial institutions. The carrying amount of the financial assets represents the maximum credit exposure. Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company settles its financial liabilities using its cash and cash equivalents. The Company manages liquidity risk through the management of its capital structure as described in Note 10. The accounts payable and accrued liabilities are due within the current operating period. Market Risk The Company’s financial instruments include investments which are publicly traded and therefore subject to the risks related to the fluctuation in market prices of publicly traded securities. The Company closely monitors market values to determine the most appropriate course of action. Interest Rate Risk Interest rate risk is the risk that the fair value of future cash flows from a financial instrument will fluctuate because of changes to market interest rates. The Company is exposed from time to time to interest rate risk as a result of holding fixed income cash equivalents and investments, of varying maturities. A 1% change in market interest rates would result in no significant change in value of cash and cash equivalents. The risk that the Company will realize a loss as a result of a decline in the fair value of these assets is limited as they are generally held to maturity and held with large Canadian financial institutions. Foreign Exchange Rate Risk Currency risk is the risk of a loss due to the fluctuation of foreign exchange rates and the effects of those fluctuations on the Company’s foreign currency denominated monetary assets and liabilities. The Company currently operates in Canada, the United States, and Mexico. Certain costs and expenses are incurred in US dollars and Mexican pesos. A 10% change in the exchange rate for Mexican Peso will have an impact of $3,300 on the condensed consolidated interim statement of loss and comprehensive income. A 10% change in the exchange rate for the US dollar will have a negligible impact on the condensed consolidated interim statement of loss and comprehensive loss. The Company does not use option or forward contracts to mitigate foreign exchange risk. 13. Subsequent Events On July 31, 2026, the Company granted stock options to its officers to purchase an aggregate of 227,000 common shares of the Company at an exercise price of $2.95 per share. The options have a five-year term and expire on July 31, 2031. The options will vest and become exercisable in four equal annual installments of 25%, commencing on July 31, 2027, being the first anniversary of the grant date.