Financial statements
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APOLLO SILVER CORP. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AUGUST 31, 2025 UNAUDITED – PREPARED BY MANAGEMENT
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2 | Page NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated 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 Apollo Silver Corp. for the three and nine months ended August 31, 2025, have been prepared by and are the responsibility of management, and have been approved by the Board of Directors (the “Board”). The Company's independent external auditor has not performed a review of these condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of condensed interim consolidated financial statements by an entity's auditor.
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3 | Page APOLLO SILVER CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Stated in Canadian Dollars) (Unaudited – Prepared by Management) Nature and continuance of operations (Note 1) Subsequent events (Note 17) Approved and authorized for issue on behalf of the Board on October 30, 2025: Andrew Bowering Steven Thomas Andrew Bowering, Director Steven Thomas, Director The accompanying notes are an integral part of these condensed interim consolidated financial statements. August 31, November 30, Notes 2025 2024 ASSE TS Current assets Cash and cash equivalents 5 8,415,539$ 13,684,047$ Receivables 81,594 14,961 Prepaid ex penses and deposits 6 928,424 230,337 Total current assets 9,425,557$ 13,929,345$ Non-current assets Property and equipm ent 7 239,835 186,548 TOTAL ASSETS 9,665,392 $ 14,115,893$ LIABILITIES Current liabilities Accounts payable and accrued liabilities 254,311$ 290,901$ Lease liability 8(b) 100,211 59,987 Total current liabilities 354,522$ 350,888$ Non-current liabilities Lease liability 8(b) 96,485 53,434 TOTAL LIABILITIES 451,007 $ 404,322$ SHAREHOLDERS' EQUITY Capital s tock 9 114,872,206$ 114,761,639$ Res erves 9(d),(e) 6,509,737 5,143,032 Accum ulated other com prehensive loss (221,162) (202,737) Accum ulated deficit (111,946,396) (105,990,363) TOTAL SHAREHOLDERS' EQUITY 9,214,385 $ 13,711,571$ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 9,665,392 $ 14,115,893$
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4 | Page APOLLO SILVER CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Stated in Canadian Dollars) (Unaudited – Prepared by Management) The accompanying notes are an integral part of these condensed interim consolidated financial statements. Notes 2025 2024 2025 2024 Operating expenses Exploration and evaluation expenses 10 738,085$ 78,452$ 2,746,867$ 732,335$ Administrative expenses 11 1,466,542 290,586 3,311,533 869,308 Depreciation 7 34,357 36,071 108,773 103,655 Loss from operations 2,238,984 405,109 6,167,173 1,705,298 Other expenses Loss on foreign exchange 2,878 1,476 5,700 3,219 Interest expense 8(b) 9,444 5,947 26,344 18,996 Other income (65,073) (26,755) (243,103) (87,057) (Gain) loss on disposal of property and equipment 8 (81) 7,356 (81) 7,356 Loss before income taxes 2,186,152 393,133 5,956,033 1,647,812 Income taxes - - - - Net loss for the period 2,186,152 $ 393,133$ 5,956,033$ 1,647,812$ Other comprehensive loss (income) Items that may be reclassified subsequently to loss: Currency translation adjustment 1,537$ 2,147$ 18,425$ (876)$ Total other comprehensive loss (income) 1,537$ 2,147$ 18,425$ (876)$ Total comprehensive loss for the period 2,187,689 $ 395,280$ 5,974,458$ 1,646,936$ Loss per share (basic and diluted) 2(c) 0.05$ 0.01$ 0.12$ 0.05$ Weighted average number of basic and diluted common shares outstanding 2(c) 48,480,008 34,925,412 48,457,979 34,896,868 Nine months ended August 31,Three months ended August 31,
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5 | Page APOLLO SILVER CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Stated in Canadian Dollars) (Unaudited – Prepared by Management) Supplemental cash flow information (Note 15) The accompanying notes are an integral part of these condensed interim consolidated financial statements. Notes 2025 2024 Operating activities Net loss for the period (5,956,033)$ (1,647,812)$ Adjustments for non-cash items: Share-based payments 10,11 1,413,189 30,958 Depreciation 7 108,773 103,655 Interest expense 8(b) 26,344 18,996 Other expense - - (Gain) loss on disposition of property and equipment (81) 7,356 Unrealized foreign exchange (110,537) (10,007) Changes in non-cash working capital items: Receivables (66,633) (1,654) Prepaid expenses (698,087) (9,281) Accounts payable and accrued liabilities (19,636) 124,801 Cash used in operating activities (5,302,701) (1,382,988) Investing activities Acquisition of equipment 7 (11,674) (4,594) Disposition of equipment 7 1,500 - Cash used in investing activites (10,174) (4,594) Financing activities Share issuance costs 9(c) (16,954) - Proceeds from exercise of stock options 9(d) 64,083 29,167 Principal payments on lease liabilities 8(b) (69,172) (71,916) Interest payments on lease liabilities 8(b) (26,344) (18,996) Cash used in financing activities (48,387) (61,745) Effect of changes in foreign exchange rates on cashh and cash equivalents 92,754 11,287 Change in cash and cash equivalents (5,268,508) (1,438,040) Cash and cash equivalents, beginning of period 13,684,047 3,563,823 Cash and cash equivalents, end of period 8,415,539 $ 2,125,783$ Nine months ended August 31,
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6 | Page APOLLO SILVER CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Stated in Canadian Dollars) (Unaudited – Prepared by Management) The number of shares outstanding has been updated retrospectively to reflect the 5-for-1 share consolidation which became effective on September 15, 2025 (Note 2(c)). The accompanying notes are an integral part of these condensed interim consolidated financial statements. Notes Number of common shares (Note 2(c)) Share cap ital Contributed Surp lus S har e-bas ed payments reserv e Accumulated other comprehensiv e (loss) income Accumulated deficit Total Balance at November 30, 2023 34,892,079 101,628,076$ 1,114,447 $ 4,004,958 $ (208,069) $ (102,996,493)$ 3,542,919 $ Net loss for the period - - - - - (1,647,812) (1,647,812) Shares issued on ex ercise of stock options 9(c) 46,667 46,167 (17,000) 29,167 Share-based paym ents 9(e) - - - 30,958 - - 30,958 Other com prehensive incom e - - - - 876 - 876 Balance at August 31, 2024 34,938,746 101,674,243$ 1,114,447 $ 4,018,916 $ (207,193) $ (104,644,305)$ 1,956,108 $ Balance at Nov emb er 30, 2024 48,438,746 114,761,639 $ 1,114,447 $ 4,028,585 $ (202,737) $ (105,990,363)$ 13,711,571 $ Net loss for the period - - - - - (5,956,033) (5,956,033) Shares issued on exercise of stock options 9(c) 83,333 110,567 (46,484) 64,083 S hare-bas ed payments 9(e) - - - 1,413,189 - - 1,413,189 Other comprehensive loss - - - - (18,425) - (18,425) Balance at August 31, 2025 48,522,079 114,872,206 $ 1,114,447 $ 5,395,290 $ (221,162) $ (111,946,396)$ 9,214,385 $ E q uity Reserv es
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 7 | Page 1. NATURE AND CONTINUANCE OF OPERATIONS Apollo Silver Corp. (the “Company” or “Apollo”) is a publicly listed exploration and development company incorporated on September 22, 1999, under the laws of the Province of Alberta, Canada. The Company filed for continuance under the Canada Business Corporations Act on December 1, 2003, and then under the laws of British Columbia on November 2, 2010. The Company is listed on the TSX Venture Exchange (“TSX-V”) and its shares trade under the symbol APGO. The Company is also listed on the OTCQB and Frankfurt Stock Exchange and its shares trade under the symbols APGOF and 6ZF0, respectively. The Company’s head office and registered and records office is #710-1030 West Georgia Street, Vancouver, British Columbia, Canada, V6E 2Y3. The Company, together with its subsidiaries, is a mineral exploration and development group focused on advancing the Calico Silver Project (the “Calico Project”), its silver exploration and resource development project in the United States, as well as its newly optioned project in Chihuahua, Mexico, called the Cinco de Mayo Project (“Cinco de Mayo”). The Calico Project is comprised of the Waterloo pr operty (the “Waterloo Property”), the Langtry property (the “Langtry Property”), and the newly acquired Mule property (the “Mule Property”) in San Bernardino County, California. The principal business of the Company is the acquisition, exploration, and definition of potentially economically viable mineral resource deposits on mineral properties. These condensed interim consolidated financial statements have been prep ared in accordance with International Financial Reporting Standards (“IFRS”) applicable to a going concern, which assumes that the Company will continue operations for the foreseeable future and will be able to re alize its assets and discharge its liabilities in the normal course of business. The Company has incurred lo sses from inception and does not currently have the financial resources to sustain operations in the long term. For the three and nine months ended August 31, 2025, the Company had no operating revenue and incurred net losses of approximately $2.19 million and $5.96 million, respectively (August 31, 2024 - $393,000 and $1.65 million). At August 31, 2025, the Company had consolidated cash of approximately $8.42 million (November 30, 2024 - $13.68 million) to apply against current liabilities of approximately $345,000 (November 30, 2024 - $351,000). At August 31, 2025, the Company believed it had adequate resources to maintain its minimum obligations arising over the next 12 months, including general corporate activities, based on its cash position, its ability to modify planned activities or exploration programs, and ability to pursue additional sources of financing, including equity placements. The Company currently has no source of operating cash flow and no assurance that additional funding will be available for future exploration and development programs at its prope rties or to enable the Company to fulfill its obligations under any applicable agreements. The Company’s ability to continue as a going concern is dependent on its ability to obtain additional sources of financing to continue to ex plore, evaluate and develop its mineral properties and, ultimately, to achieve profitable operations. While the Company has been successful in obtaining funding in the past, there is no assurance that future financing will be availabl e or be available on favorable terms. The ability to secure financing may be impaired, or such financing may not be available on favorable terms due to conditions beyond the Company’s control, such as uncertainty in capital markets, changes in commodity prices or country-specific risk factors. 2. BASIS OF PREPARATION (a) Statement of compliance and basis of preparation These condensed interim consolidated financial statemen ts, including comparatives, have been prepared in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting (“IAS 34”) using accounting policies consistent with IFRS issued by the International Accounting Standards Board (“IASB”) and Interpretations of the International Financial Repor ting Interpretations Committee. These condensed interim consolidated financial statements do not include all the information and footnotes required by IFRS for annual financial statements and should be read in conjunc tion with the Company’s annual consolidated financial statements for the year ended November 30, 2024, which have been prepared in accordance with IFRS, as issued
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 8 | Page by the IASB. These condensed interim consolidated financial statements, including comparatives, have been prepared on the basis of accounting policies and methods of computation consistent with those applied in the Company’s annual consolidated financial statements for the year ended November 30, 2024. (b) Material accounting policies Basis of measurement The accounting policies applied in the preparation of these condensed interim consolidated financial statements, including comparatives, are consistent with those applied and disclosed in Note 3 of the Company’s annual consolidated financial statements for the year ended November 30, 2024. Basis of consolidation These condensed interim consolidated financial stat ements include the account s of the Company and its subsidiaries, which are entities controlled by the Comp any. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from the entity’s activities. The financial statements of subsidiaries are included in the condensed interim consolidated financial statements as at the date that control commences until th e date that control ceases. If the Company’s interest in a subsidiary that it has determined it controls, is less than 100%, the interest attributable to non-controlling shareholders is recognized as non-controlling interest. When necessary, adjustments are made to the financial statements of subsidiaries to align their accounting policies with those of the Company. Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated. Unrealized losses are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment. Functional and presentation currency These consolidated financial statements are presente d in Canadian dollars, which is also the Company’s functional currency. Each of the Company’s subsidiaries determines its own functional currency, and items included in the financial statements of each subsidiary are measured in that functional currency. The functional currency of the Company’s foreign exploration and development subsidiary in the USA is the US dollar. References to “$” are to Canadian dollars, except where otherwise indicated. Foreign currency (i) Foreign currency transactions Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing on the dates of the transactions. At each statement of financial position date, monetary items denominated in foreign currencies are translated into the functional currency at the exchange rate on the statement of financial position date. Non-monetary ite ms carried at fair value that are denominated in foreign currencies are translated in to the functional currency at the exchange rate on the date when the fair value was measured. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognized in profit or loss. (ii) Foreign operations The assets and liabilities of foreign operations are tr anslated into Canadian dollars using the exchange rates as at the date of the statement of financial position. The income and expenses of foreign operations are translated into Canadian dollars using the exchange rates prevailing on the transaction dates. Foreign currency differences are r ecognized in other comprehensive income (loss) and accumulated in
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 9 | Page other reserves within equity, except to the extent that the translation difference is allocated to non- controlling interests. On the disposal of a foreign op eration, such exchange differences are reclassified from other reserves to profit or loss. (c) Comparative figures A 5 for 1 share consolidation was completed on September 15, 2025 (the “Share Consolidation”). As per IAS 33, Earnings Per Share, when there has been a capital event such as a share consolidation in the period, or after the reporting date but before the date that the financ ial statements are authorized for issue, retrospective adjustments are required for all periods prior to the share consolidation. All shares and per share data presented in the Company’s condensed interim consolidated financial statements have been retrospectively adjusted to reflect the Share Consolidation. Accordingly, all referenc es to the number of shares, options, warrants and per share data for all prior periods have been adjusted to reflect the Share Consolidation (Note 9(b)). 3. ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS AND INTERPRETATIONS During the three and nine months ended August 31, 2025, the Company did not adopt any new amendments to IFRS that had a significant impact on the Company’s consolidated financial statements. In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements, which replaces IAS 1, Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income statement by requiring income and expenses to be presented into the three main categories of operating, investing and financing, and by specifying certain defined totals and subtotals. An entity may use certain subtotals of income and expenses in public communications outside the financial statements to commun icate management’s view of an aspect of the financial performance of the entity as a whole to users, and these subtotals are not specifically required by IFRS Accounting Standards. IFRS 18 requires companies to disclose expl anations around these measures , which are referred to as management-defined performance measures. IFRS 18 also provides additional guidance on principles of aggregation and disaggregation that apply to the primary financial statements and the notes. IFRS 18 will not affect the recognition and measurement of items in the financial statements, nor will it affect which items are classified in other comprehensive income and how these items are classified. The standard is eff ective for reporting periods beginning on or after January 1, 2027, including for interim financial statements. Retrospective application is required, and early application is permitted. The Company is currently assessing the effect of this new standard on its consolidated financial statements and will defer implementation until the effective date. 4. CRITICAL ACCOUNTING ESTIMATES AND SIGNIFICANT JUDGMENTS In applying the Company’s accounting policies, as described in Note 3 of the Company’s annual consolidated financial statements for the year ended November 30, 2024, manage ment is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. These estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments. Actual results may differ from these estimates. Significant assumptions about the future and other sources of estimation and judgment uncertainty that management has made at the end of the reporting period, could result in a material adjustment to the carrying amounts of assets and liabilities in the event that actual results differ from assumptions made. The critical accounting estimates and si gnificant judgments made by manage ment in the preparation of these condensed interim financial statements are consistent w ith those disclosed in Note 5 of the Company’s annual consolidated financial statements for the year ended November 30, 2024. 5. CASH AND CASH EQUIVALENTS The Company’s cash and cash equivalents comprises approximately $340,000 (November 30, 2024 - $460,000) held in deposit accounts and $8.08 million (November 30, 2024 - $13.22 million) held in redeemable short-term investments that earn interest and are redeemable at any time prior to maturity without penalty.
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 10 | Page 6. PREPAID EXPENSES AND DEPOSITS 7. PROPERTY AND EQUIPMENT 8. LEASES (a) Right-of-use-assets At August 31, 2025, approximately $173,000 (November 30, 2024 - $93,000) of ROU assets, consisting of the Company’s head office premises in Vancouver, BC, and warehouse in Barstow, California are recorded as part of property and equipment (Note 7). The Company’s lease pertaining to its warehouse in Barstow, California expired on January 31, 2025, and was extended for an additional 36 months, resulting in an addition of approximately $160,000 to ROU assets in January 2025. ROU assets are depreciated on a straight-line basis over the shorter of the lease term and the useful life of the underlying assets. August 31, November 30, 2025 2024 Prepaid ex penses 913,139$ 127,581$ Prepaid ex ploration and evaluation ex penses 2,960 67,543 Deposits 12,326 35,213 Total prepaid ex penses and deposits 928,424$ 230,337$ Computer equipment Furniture & equipment Leasehold improv ements Vehicles ROU assets (Note 8(a)) Total Cost Balance - November 30, 2023 29,617 $ 22,127 $ 33,910 $ 144,547$ 319,182 $ 549,383 $ Additions 9,100 - - - 54,262 63,362 Write-offs and disposals (17,167) - - - - (17,167) Foreign ex change - 389 - 4,555 5,610 10,554 Balance - Nov emb er 30, 2024 21,550 22,516 33,910 149,102 379,054 606,132 Ad d itions 11,674 - - - 160,101 171,775 Write-offs and d isp osals (12,439) - - - - (12,439) Foreign exchange - (244) - (2,852) (11,264) (14,360) Balance - August 31, 2025 20,785 $ 22,272 $ 33,910 $ 146,250 $ 527,891 $ 751,108 $ Accumulated amortization Balance - November 30, 2023 12,693 $ 15,043 $ 14,755 $ 54,012 $ 186,417$ 282,920 $ Charge for the year 5,457 3,095 6,782 29,019 94,879 139,232 Write-offs and disposals (9,811) - - - - (9,811) Foreign ex change - 386 - 2,503 4,354 7,243 Balance - Nov emb er 30, 2024 8,339 18,524 21,537 85,534 285,650 419,584 Charge for the period 7,238 1,549 5,087 22,401 72,498 108,773 Write-offs and d isp osals (11,020) - - - - (11,020) Foreign exchange - (248) - (2,102) (3,715) (6,065) Balance - August 31, 2025 4,557 $ 19,825 $ 26,624 $ 105,833 $ 354,433 $ 511,272 $ Net book value - Novem ber 30, 2024 13,211 $ 3,992 $ 12,373$ 63,568 $ 93,404 $ 186,548$ Net b ook v alue - August 31, 2025 16,228 $ 2,447 $ 7,286 $ 40,417 $ 173,458 $ 239,835 $
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 11 | Page (b) Lease liabilities The Company’s leases comprise only fixed payments over the term of the lease. The Company’s lease pertaining to its warehouse in Barstow, California expired on January 31, 2025, and was extended for an additional 36 months, resulting in an addition of approximately $160,101 to the Company’s lease liability in January 2025. The Company recorded interest expense of $9,311 and $26,344 on lease liabilities for the three and nine months ended August 31, 2025 (August 31, 2024 - $5,955 and $18,996). During the three and nine months ended August 31, 2025, and August 31, 2024, the Company recorded $Nil related to short-term leases. The contractual maturities in respect of the Company’s lease obligations are as follows: 9. SHARE CAPITAL AND RESERVES (a) Authorized share capital The Company is authorized to issue an unlimited number of common shares without par value. At August 31, 2025, the Company had 48,522,079 common shares issued and outstanding (November 30, 2024 – 48,438,746 (242,193,729 pre-Share Consolidation)). Office Warehouse Total Right of use assets Net book value of ROU assets at Novem ber 30, 2023 127,761$ 5,004 $ 132,765$ Additions - 54,262 54,262 Amortization charge for the year (43,803) (51,076) (94,879) Foreign ex change - 1,256 1,256 Net book value of ROU assets at Novem ber 30, 2024 83,958 9,446 93,404 Additions - 160,101 160,101 Amortization charge for the p eriod (32,853) (39,646) (72,499) Foreign exchange - (7,548) (7,548) Net b ook v alue of ROU assets at August 31, 2025 51,105 $ 122,353 $ 173,458 $ August 31, 2025 Novem ber 30, 2024 Lease liab ility continuity Balance at beginning of period 113,421$ 155,679$ Non-cash changes Additions 160,101 54,262 Accretion 26,344 23,863 Change in foreign ex change and other (7,659) 1,174 Cas h flows Principal paym ents (69,172) (97,694) Interest payments (26,344) (23,863) Total lease liab ilities, end of p eriod 196,691 $ 113,421$ August 31, 2025 Novem ber 30, 2024 Maturity analysis - contractual undiscounted cash flows Less than one year 128,163$ 71,585$ One to two years 80,217 57,246 Two to three years 30,232 - Total und iscounted lease liab ilities 238,612 128,831 Effect of discounting (41,921) (15,410) Total lease liab ilities 196,691$ 113,421$ Current 100,206$ 59,987$ Non-current 96,485$ 53,434$
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 12 | Page (b) Share consolidation On September 15, 2025 (subsequent to the reporting period), the Company completed the previously announced five-for-one Share Consolidation. Following completion of the Share Consolidation, the Company had 48,522,079 common shares issued and outstanding, compared to 242,610,395 common shares prior to the Share Consolidation. No fractional shares were issued as a result of the Share Consolidation, and any fractional interests were rounded to the nearest whole share. The Company’s name and trading symbol remained unchanged. All outstanding stock options and other convertible securities were adjusted proportionately to reflect the 5:1 ratio in accordance with their respective terms. The ou tstanding share purchase warrants, however, were not consolidated. Instead, the conversion ratio was adjusted such that five (5) warrants are now exercisable for one (1) post-consolidation common share, with the exercise price per warrant remaining at $0.79 (equivalent to $3.95 per post-consolidation share). The Share Consolidation occurred subsequent to the reporting period and has been reflected retrospectively in these condensed interim consolidated financial statements (Note 2(c). (c) Share issuances (i) Shares issued during the nine months ended August 31, 2025 During the nine months ending August 31, 2025, a total of 83,333 common shares were issued upon the exercise of 53,333 share purchase options with an exercise price of $0.625 per share and 30,000 share purchase options with an exercise price of $1.025 per share. The Company received total proceeds of $64,083 from the exercise of share purchase options, and $46,484 was transferred from the share-based payments reserve to share capital. (ii) Shares issued during the year ended November 30, 2024 Private placement On November 8, 2024, the Company closed a non-brokered private place ment (the “Private Placement”), issuing 13,500,000 common shares at a price of $1.00 per share for aggregate gross proceeds of $13,500,000. Total share issuance costs were $412,604, of which $16,954 remained payable as at November 30, 2024, and were subsequently paid during the three months ended February 28, 2025. Exercise of stock options A total of 46,667 common shares were issued in during the year ended November 30, 2024, after 46,667 stock options were exercised at a price of $0.625 per share. Total proceeds of $29,167 were received by the Company in exchange for the common shares issued (Note 9(e)). (d) Share purchase warrants During the nine months ended August 31, 2025, and year ended November 30, 2024, there were no share purchase warrants issued, exercised, or expired. Details of the warrants outstanding as at August 31, 2025, are as follows: (i) On July 4, 2023, the Company held a special meeting of warrant holders to approve amendments to warrants originally expiring July 8, 2023. Pursuant to the approved amendments, the expiry date wa s extended three years to July 8, 2026, and the exercise price was fixed at $0.79 per warrant. Following the completion of the five -for-one Share Consolidation on September 15, 2025, the warrant s were adjusted in accordance with their terms such that five (5) warrants are now exercisable for one (1) post-consolidation com mon share. The exercise price per warrant remains $0.79, representi ng an effective post-consolidation exercise price of $3.95 per s hare. Expiry Date Note Number of warrants outstanding Number of common shares upon ex ercise Weighted average ex ercise price ($ per warrant) as at August 31, 2025 Weighted average remaining contractual life (years) as at August 31, 2025 July 8, 2026 9(d)(i) 35,266,667 7,053,333 0.79 $ 0.85 35,266,667 7,053,333 0.79 $ 0.85
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 13 | Page The warrants themselves were not consolidated or replaced; only the conversion ratio was adjusted to preserve the holders’ economic position following the share consolidation. The warrants themselves were not consolidated or replaced; only the conversion ratio was adjusted to preserve the holders’ economic position following the Share Consolidation. (e) Share-based payments The Company has an Omnibus Incentive Plan (the “Plan”) under which it is authorized to grant share purchase options, restricted share units (“RSUs ”) and deferred share units (“DSUs”) to executive officers, directors, employees and consultants of the Company. The aggregate number of securities reserved for issuance will be not more than 10% of the issued and outstanding common stock of the Company. Under the Plan, the exercise price of each option will be set by the Board of Directors and ca nnot be less than the discounted market price, which is equal to the market price of the Company’s stock at the time of the grant, less the applicable discount permitted by the TSX-V. The options can be granted for a maximum term of 5 years with vesting determined by the Board of Directors. Stock options On December 18, 2024, the Company granted a total of 1,640,000 stock options to directors, officers, employees and consultants of the Company. The newly granted options have a term of five (5) years and are exercisable at a price of $1.025 per common share and will vest over a 24-month period, with one third (1/3rd) of the new granted options vesting on the grant date, a further one-third (1/3rd) vesting after twelve (12) months, and the balance after 24 months. On February 24, 2025, the Company granted 60,000 stock options to one of its directors. The options have a term of five (5) years and are exercisable at a price of $1.275 per common share and will vest over a 24-month period, with one third (1/3rd) of the new granted options vesting on the grant date, a further one-third (1/3rd) vesting after twelve (12) months, and the balance after 24 months. On May 5, 2025, the Company granted 500,000 stock options to its newly appointed President and Chief Executive Officer. The options have a term of five (5) years and are exercisable at a price of $1.575 per common share and will vest over a 24-month period, with one third (1/3rd) of the new granted options vesting on the grant date, a further one-third (1/3rd) vesting after twelve (12) months, and the balance after 24 months. On August 15, 2025, the Company granted 866,000 stock options, 453,000 RSUs and 280,000 DSUs to directors, officers, employees and consultants of the Company. The newly granted options have a term of five (5) years and are exercisable at a price of $2.20 per common shar e and will vest over a 24-month period, with one third (1/3rd) of the new granted options vesting on the grant date, a further one third (1/3rd) vesting after twelve (12) months, and the balance after 24 months. The newly gran ted RSUs will vest over a 36-month period, with one third (1/3rd) of the newly granted RSUs vesting after twelve (12) months, a further one third (1/3rd) vesting after twenty-four (24) months, and the balance after thirty-six (36) months. The newly granted DSUs will vest over a twelve (12) month period, with all newly granted DSUs vesting after twelve (12) months. The weighted average fair value of the share purchase options granted during the nine months ended August 31, 2025, was estimated to be $0.932 on the date of issuance using the Black-Scholes option pricing model with the following weighted average assumptions: risk-free interest rate of 2.89%, expected life of 3.5 years, annualized volatility of 95.76% and dividend yield of 0%. Share-based payments expense relating to the vesting of stock options for the three and nine months ended August 31, 2025, was $586,513 and $1,359,493, respectively (August 31, 2024 - $11,704 and $30,957) and has been allocated between administrative expenses (Note 11) and exploration and evaluation expenses (Note 10) in the condensed interim consolidated statements of loss and comprehensive loss.
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 14 | Page The following table summarizes share purchase option activity for the nine months ended August 31, 2025, and August 31, 2024: The following table summarizes the share purchase options outstanding as at August 31, 2025: Restricted share units On August 15, 2025, the Company granted an aggregate of 453,000 RSUs to certain officers, employees and consultants of the Company pursuant to the Plan. Each RSU entitles the holder to receive one common share of the Company upon vesting, subject to the terms of the plan. The RSUs vest as to one-third on each of the first, second, and third anniversaries of the grant date, subject to the participant’s continued service with the Company. The fair value of the RSUs granted was determined based on the market price of the Company’s common shares on the grant date of $2.20 per share, for a total fair value of $996,600, which will be recognized as share-based compensation expense over the vesting period. During the three and nine months ended August 31, 2025, the Company recognized $26,693 and $26,693, respectively, in share-based compensation expense related to DSUs (August 31, 2024 – $Nil and $Nil) and has been allocated between administrative expenses (Note 11) and exploration and evaluation expenses (Note 10) in the condensed interim consolidated statements of loss and comprehensive loss.. Deferred share units On August 15, 2025, the Company granted an aggregate of 280,000 DSUs to certain non-executive directors of the Company under the Plan. Each DSU entitles the holder to receive one common share of the Company upon settlement, which occurs upon the individual’s cessation of service as a director, in accordance with the Plan. In accordance with the Plan, no DSU may vest prior to the first anniversary of the grant date. Accordingly, the DSUs vest on August 15, 2026, subject to the holder’s continued service as a director. The fair value of the DSUs granted was determined based on the market price of the Company’s common shares on the grant date of $2.20 per share, for a total fair value of $616,000, which will be recognized as share-based compensation expense over Number of stock options Weighted average exercise price ($ per share) Number of stock options Weighted average exercise price ($ per share) Outstanding, beginning of period 1,480,000 2.30 $ 2,203,333 2.50 $ Granted 3,066,000 1.43 - - Exercised (83,333) 0.77 (46,667) 0.63 Expired (220,000) 1.65 - - Forfeited/cancelled (163,334) 2.36 (306,667) 2.60 Outstanding, end of period 4,079,333 1.72 $ 1,849,999 2.50 $ Exercisable, end of period 2,101,984 1.95 $ 1,600,000 2.70 $ Nine months ended August 31, 2025 Nine months ended August 31, 2024 Options exercisable Exercise price ($ per share) Number of stock options Weighted average remaining contractual life (years) Number of stock options Weighted average remaining contractual life (years) $0.625 520,000 2.21 520,000 2.21 $1.025 1,543,333 4.27 516,653 4.30 $1.275 60,000 4.48 20,000 4.48 $1.575 500,000 4.67 166,667 4.67 $2.20 866,000 4.96 288,664 4.96 $2.95 60,000 1.56 60,000 1.56 $3.55 120,000 1.19 120,000 1.19 $4.10 50,000 1.07 50,000 1.07 $4.30 360,000 0.88 360,000 0.88 4,079,333 3.74 2,101,984 2.99 Options outstanding
Page 15
APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 15 | Page the vesting period. During the three and nine months ended August 31, 2025, the Company recognized $27,003 and $27,003, respectively, in share-based compensation expense related to DSUs (August 31, 2024 – $Nil and $Nil). 10. EXPLORATION AND EVALUATION EXPENSES Exploration and evaluation expenses are summarized as follows: (a) Calico Silver Project, California, USA The Calico Project, comprised of the adjacent Waterloo Property, Langtry Property, and newly acquired Mule Property, is located in the Calico Silver Mining Distri ct in the Mojave Desert of San Bernardino County, California, USA. (i) The Waterloo Property Pan American Minerals Inc., a wholly-owned subsidiary of Pan American Silver Corp., retains a 2% Net Smelter Royalty on any future production of minerals from the Waterloo Property. (ii) The Langtry Property The Langtry Property comprises 20 patented claims (413 acres) and 38 unpatented lode mining claims (765 acres), totalling approximately 1,178 acres. 20 patented claims and two unpatented claims are under option between Stronghold USA and the Bruce and Elizabeth Strachan Revocable Living Trust dated 7- 25-2007 (“Strachan”), while the remaining 36 unpat ented claims are under op tion between Stronghold USA and Athena Minerals Inc. (“Athena”). Each agreement is subject to various royalties and encumbrances. Calico Silv er Project Cinco de Mayo Project Other Total Calico Silver Project Cinco de Mayo Project Other Total Salaries and benefits 54,584$ 18,195 $ - $ 72,779$ 30,841$ - $ - $ 30,841$ Share-based paym ents - - 100,113 100,113 - - 2,536 2,536 Lab, assay & m etallurgy 4,078 - - 4,078 1,701 - - 1,701 Permits, fees, licences and taxes 134,846 198,202 - 333,048 27,419 - - 27,419 Acquisition costs and option paym ents 8,603 - - 8,603 - - - - Ex ploration & geology - 8,314 - 8,314 - - - - Resource developm ent and technical reports 105,240 - - 105,240 5,501 - - 5,501 Com m unity - - - - - - - - G eneral and adm inistrative operational costs 3,544 75,907 - 79,451 6,442 - - 6,442 Travel - 610 - 610 - - - - Other 11,428 - - 11,428 4,012 - - 4,012 Total ex ploration and evaluation ex penses 336,744$ 301,228 $ 100,113 $ 738,085 $ 75,916$ - $ 2,536$ 78,452$ Three months end ed August 31, 2025 Three m onths ended August 31, 2024 Calico Silv er Project Cinco de Mayo Project Other Total Calico Silver Project Cinco de Mayo Project Other Total Salaries and benefits 137,312$ 45,771 $ - $ 183,083$ 200,708$ - $ - $ 200,708$ Share-based paym ents - - 170,775 170,775 - - 3,552 3,552 Lab, assay & m etallurgy 389,980 - - 389,980 22,259 - - 22,259 Permits, fees, licences and taxes 337,024 593,052 - 930,076 215,332 - - 215,332 Acquisition costs and option paym ents 539,178 - - 539,178 168,150 - - 168,150 Ex ploration & geology 22,560 22,899 - 45,459 - - - - Resource developm ent and technical reports 150,611 43,183 - 193,794 36,696 - - 36,696 Com m unity - - - - 11,923 - - 11,923 Professional, regulatory and compliance costs 14,421 - - 14,421 1,363 1,363 G eneral and adm inistrative operational costs 54,129 185,583 - 239,712 53,319 - - 53,319 Travel - 8,717 - 8,717 - - - - Other 30,472 1,200 - 31,672 19,033 - - 19,033 Total ex ploration and evaluation ex penses 1,675,687$ 900,405 $ 170,775 $ 2,746,867 $ 728,783$ - $ 3,552$ 732,335$ Nine months end ed August 31, 2025 Nine m onths ended August 31, 2024
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 16 | Page Strachan Agreement Stronghold USA, the optionee, and Strachan, the optionor, entered into an Option to Purchase Agreement (the “Strachan Agreement”) dated December 23, 2020, which grants Stronghold USA the right to acquire a 100% interest in 20 patented land claims and two unpatented lode mining claims forming a portion of the Langtry Property (the “Strachan Lands”) for the greater of (i) US$5,200,000; or (ii) the spot price of 220,000 troy ounces of silver, on or before December 24, 2025 (the “Original Agreement”). Under the terms of the Original Agreement, Stronghold USA was required to make annual payments of US$100,000 on each anniversary date to maintain the option in good standing, with all payments creditable against the purchase price. On August 15, 2025, Stronghold USA and Strachan entered into an amendment to the Original Agreement (the “Amendment”) which: (i) extends the option expiry date from December 24, 2025, to December 24, 2034; (ii) increases the purchase price to the greater of US$7.0 million or the spot price of 250,000 troy ounces of silver (the “Amended Purchase Price”), less any option payments made to date; and (iii) provides for additional annual option maintenance payments totaling US$3.9 million over the nine-year extension period, all creditable against the Amended Purchase Price. To date, the Company has made aggregate option payments of US$500,000. To remain in good standing, Stronghold USA must make the following payments to the Strachan Trust: US$500,000 on or before December 24, 2025; US$250,000 on or before December 24, 2027; US$300,000 on or before December 24, 2028; US$350,000 on or before December 24, 2029; US$400,000 on or before December 24, 2030; US$450,000 on or before December 24, 2031; US$500,000 on or before December 24, 2032; US$550,000 on or before December 24, 2033; and US$600,000 on or before December 24, 2034, plus all applicable real estate taxes, fees, and assessments payable to governmental authorities. All option payments made to date and those required under the amended payment schedule are creditable against the Amended Purchase Price. Upon full exercise of the option, Stronghold USA will grant to Strachan (i) a 1% net smelter return (“NSR”) royalty on any future production of silver from the Strachan Lands, (ii) a 5% gross royalty on all other mineral production, and (iii) a 10% gross royalty on all non-mineral production income derived from other commercial use of the Strachan Lands. The Langtry Property is further subject to (i) a 2% NSR royalty on silver production from the patented claims in favour of a subsidiary of ExxonMobil Corporation, following a US$150,000 payment by Athena Minerals Inc. reducing the original royalty; and (ii) a 1% NSR royalty payable by the Strachan Trust (or its successor-in-interest) to Athena Minerals Inc. pursuant to a deed dated November 1, 2021. Athena Agreement Stronghold USA, the optionee, and Athena, the optionor, entered into an Option to Purchase Agreement (the “Athena Agreement”) dated December 21, 2020 , and amended on January 11, 2023, which gives Stronghold USA the right to acquire 100% interest in 36 unpatented lode mining claims forming a portion of the Langtry Property (“Athena Lands”) for an aggregate purchase price of US$1,000,000 to be made on or before December 21, 2025. Terms of the Athena Agreement included US$15,000 upon execution of the Athena Agreement (paid in December 2020, prior to Apollo acquiring Stronghold USA) and US$25,000 on each Athena Agreement anniversary date. All payments made by the optionee to the optionor during the 24-month period prior to the full exercise of the option shall be credited against the purchase price. Upon vesting of 100% interest, Stronghold USA will grant to Athena a 1% Net Smelter Royalty on any future production of minerals from the Athena Lands. The royalty shall only apply on those Athena Lands that currently do not have existing royalties of 1% or higher such that at no time will any property have a royalty of greater than 2%.
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 17 | Page As of August 31, 2025, the Company has made four non-refundable option payments of US$25,000 to Athena, under the terms of the Athena Agreement. (iii) The Mule Property On May 20, 2025, the Company acquired 418 highly prospective unpatented lode mining claims (2,215 hectares) to Waterloo at Calico. The newly acquired claims referred to as the Mule Property were acquired through Apollo’s wholly owned U.S. subsidiary, Stronghold, for US$250,000 in cash, and LAC retains a 2% net smelter return royalty on the claims. Apollo, through Stronghold, retains the right to buy back 1% of the Royalty at any time on or before the date that is thirty (30) days from the date of commencement of commercial production, for a payment of US$1,000,000. (b) Cinco de Mayo Project, Chihuahua, Mexico On September 23, 2024, the Company announced that it had entered into an exploration, earn-in and option agreement (the “Option Agreement”), dated effective September 20, 2024, with MAG Silver Corp. (“MAG”) and its subsidiary, Minera Pozo Seco, S.A. de C.V. (“MPS”), pursuant to which the Company has the option (the “Transaction”) to acquire Cinco de Mayo. MAG was acquired by Pan American Silver Corp. (NYSE: PAAS, TSX: PAAS) (“Pan American”) on September 4, 2025, pursuant to a plan of arrangement. Following the acquisition, Pan American became the counterparty to the Company’s option agreement relating to the Cinco de Mayo Property. Cinco de Mayo comprises 29 concessions totalling approximately 25,000 hectares and is located in the north central part of Chihuahua, Mexico approximately 190 kilome tres (“km”) northwest of the state capital of Chihuahua City in the Municipio de Buenaventura. The Cinco de Mayo area is located immediately west of the village of Benito Juárez and for the purposes of exploration, benefits from excellent access via local dirt roads. Pursuant to the terms of the Transaction, the Company has been granted an option (the “Option”) to acquire all the outstanding share capital of 0890887 B.C. Ltd. (“NumberCo”), now a wholly-owned subsidiary of Pan American, which itself is the indirect controlling shareholder of MPS. MPS is the sole registered and beneficial owner of the mineral concessions comprising the Cinco de Mayo. In order to exercise the Option, the Company is required to obtain the necessary licensing to access and conduct mini ng activities at Cinco, and subsequently complete no less than 20,000 meters of exploratory drilling, all within a five-year period (the “Option Term”). Upon exercise of the Option, and subject to the final approval of the TSX-V, the Company will issue to Pan American common shares (the “Consideration Shares”) equivalent to 19.9% of the then issued and outstanding common shares of the Company, on a non-diluted basis. During the Option Term, the Company will control all exploration and development activities at Cinco de Mayo and will be responsible for all expenses associated with maintaining the Cinco de Mayo Project in good standing. Following exercise of the Option, Pan American will be granted certain rights allowing it to participate in subsequent equity interests to maintain its percentage ownership interest in the Company. The Consideration Shares will be subject to a four-month statutory hold period in accordance with applicable securities laws. The Company is at arms-length from Pan American (and MAG) and MPS, and no finders’ fees or commissions are payable in connection with entering into the Option Agreement. In the event the Option is exercised, and Cinco de Mayo is acquired by the Company, a finders’ fee equivalent to 3.5% of the value of the Consideration Shares is due and owing to an arms-length third-party wh o assisted in facilitating the Transaction. The finders’ fee is payable in cash or common shares of the Company, or any combination, at the discretion of the Company, and subject to the approval of the TSX-V. In the event any portion of the finders’ fee is payable in common shares of the Company, the shares will be issuable at an equivalent deemed price to the Consideration Shares. At the time of entering into the Option Agreement, the Company evaluated its nature and concluded that it does not meet the definition of a financial instrument under IFRS 9. Accordingly, all costs related to the Option Agreement and the underlying Cinco de Mayo are treated as exploration and evaluation expenditures under IFRS
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 18 | Page 6. In line with the Company’s accounting policy for IFRS 6, all such expenditures—including acquisition costs and option payments—are expensed as incurred. No cost s are capitalized unless econ omically viable reserves have been identified and a formal decision to proceed with development has been made. Under the Option Agreement, the Comp any has agreed to reimburse Pan Am erican for property maintenance related costs, including bi-annual concession payments for a minimum of two years from the effective date of the Option Agreement. The underlying cost s are expected to be incurred in Mexican pesos, and the Company has estimated the value of the commitments as follows: 11. ADMINISTRATIVE EXPENSES 12. RELATED PARTY TRANSACTIONS Transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. During the three and nine months ended August 31, 2025, and August 31, 2024, the Company did not have any transactions with related parties, other than pa yments made to its key management personnel as disclosed below. Key management personnel include those persons having authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of the Company’s officers and members of the Company's Board of Directors. The remuneration of directors and key management personnel during the three and nine months ended August 31, 2025, and August 31, 2024, were as follows: (i) $Nil of salaries, benefits and consulting fees are allocated to exploration and evaluation expenses for the three and nine months ended August 31, 2025 (August 31, 2024 - $Nil and $72,000). (ii) Share-based payments represent the fair value of the stock-optio ns granted to key management pe rsonnel that were recognized in the condensed interim consolidated statements of loss and comprehensive loss in the three and nine months ended August 31, 2025, and August 31, 2024. Less than one year 1,000,000$ Between one and two years 168,000 1,168,000$ 2025 2024 2025 2024 Salaries and benefits 347,427$ 118,525$ 980,493$ 443,655$ Directors fees 70,639 42,917 177,736 155,417 Share-based payments 540,096 9,169 1,242,414 27,406 Office and administration 28,078 20,088 75,992 64,792 Investor relations and marketing 350,802 48,969 588,352 60,613 Professional fees 64,144 11,593 94,657 11,593 Transfer agent and filing fees 30,365 3,057 52,600 18,755 Insurance 8,411 8,465 26,170 29,598 Accounting, audit and tax compliance - - 32,927 24,005 Business development 6,210 27,062 7,220 27,242 Travel 9,677 - 20,361 3,974 Other 10,693 741 12,611 2,258 Total adm inistrative ex penses 1,466,542$ 290,586$ 3,311,533$ 869,308$ Three months ended August 31, Nine months ended Au gust 31, 2025 2024 2025 2024 Salaries, benefits and consulting fees (i)(iii) 316,368$ 104,494$ 864,750$ 476,755$ Director fees 70,639 42,917 177,736 155,417 Share-based payments (ii) 420,558 10,339 896,757 30,905 Total key management compensation 807,565$ 157,750$ 1,939,243$ 663,077$ Nine months ended August 31,Three months ended August 31,
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 19 | Page (iii) Salaries, benefits and consulting fees includes termination payments paid to former officers. At August 31, 2025, $Nil was owed to any directors or officers of the Company relating to unpaid director fees or expense reimbursements (November 30, 2024 - $24,000). 13. SEGMENTED INFORMATION The Company currently operat es in three geographically based industry segments: Canada, the United States, and Mexico. The Company’s head office is in Vancouver, Canada. The reported loss from operations for the three and nine months ended August 31, 2025, and August 31, 2024, respectively in each segment is as follows: The Company’s non-current assets at August 31, 2025, and November 30, 2024, were located in Canada, the United States, and Mexico, as follows: 14. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Financial assets and liabilities have been classified into categories that determine their basis of measurement and, for items measured at fair value on a recurring basis, whether changes in fair value are recognized at fair value through profit or loss or fair value through other comprehensive income. The Company’s financial assets and financial liabilities are classified as follows: IFRS 7, Financial Instruments: Disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities; USA Canada Mexico Total USA Canada Mex ico Total E&E expens es 342,016$ 100,113 $ 295,956 $ 738,085 $ 75,916$ 2,536 $ - $ 78,452$ Adm inistrative ex penses 54,862 1,411,680 - 1,466,542 441 290,145 - 290,586 Depreciation 19,941 14,416 - 34,357 21,325 14,746 - 36,071 Loss from operations 416,819$ 1,526,209 $ 295,956 $ 2,238,984 $ 97,682$ 307,427$ - $ 405,109$ Three months ended August 31, 2025 Three m onths ended May 31, 2024 USA Canada Mexico Total USA Canada Mex ico Total E&E expens es 1,680,959$ 170,775 $ 895,133 $ 2,746,867 $ 728,783$ 3,552 $ - $ 732,335$ Adm inistrative ex penses 71,318 3,240,215 - 3,311,533 14,771 854,537 - 869,308 Depreciation 62,129 46,644 - 108,773 59,798 43,857 - 103,655 Loss from op erations 1,814,406$ 3,457,634 $ 895,133 $ 6,167,173 $ 803,352$ 901,946 $ - $ 1,705,298$ Nine m onths ended August 31, 2024Nine months end ed August 31, 2025 August 31, Novem ber 30, August 31, Novem ber 30, August 31, Novem ber 30, August 31, Novem ber 30, 2025 2024 2025 2024 2025 2024 2025 2024 Property and equipm ent 162,775$ 73,099$ 77,060$ 113,449$ -$ -$ 239,835$ 186,548$ Non-current assets 162,775$ 73,099$ 77,060$ 113,449$ -$ -$ 239,835$ 186,548$ USA Canada Mexico Total August 31, November 30, 2025 2024 Financial assets Cash and cash equivalents 8,415,539$ 13,684,047$ Receivables 33,935 - Deposits 12,325 35,213 Total financial as s ets 8,461,799$ 13,719,260$ Financial liabilities Accounts payable and accrued liab ilities 254,311$ 290,901$ Leas e liabilities 196,696 113,421$ Total financial liabilities 451,007$ 404,322$
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 20 | Page Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs). Cash and cash equivalents, receiva bles, deposits, accounts payable and accrued liabilities and lease liabilities approximate their fair value because of the short-term nature of these instruments. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjec tive in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk and market risk, and the impact on the Company’s financial instruments are summarized below: a) Credit risk Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its liquid financial assets including cash. The Company limits exposure to credit risk on liquid financial assets through maintaining its cash with high-quality financial institutions as determin ed by a primary ratings agency. Receivables primarily consist of a GST receivable for input tax credits from the Government of Canada. The Company has been successful in recovering input tax credits and receivables from the Government of Canada in the past and believes credit risk with respect to receivables is insignificant. b) Liquidity risk Liquidity risk is the risk that the Company will not have sufficient cash to meet its financial obligations as they come due. The Company’s approach to managing liquidity risk is to for ecast its cash flows required for its planned operating, investing and financing activities so th at it will have sufficient liquidity to meet liabilities when due. At August 31, 2025, the Company had a cash balance of approximately $8.42 million (November 30, 2024 - $13.68 million) to settle current liabilities of approximately $345,000 (November 30, 2024 - $351,000). All the Company’s accounts payable and accrued liabilities have contractual maturities of 30 days or are due on demand and are subject to normal trade terms, other than amounts due to related parties which are without stated terms of interest or repayment. The Company believes that its current cash is sufficient to settle its near-term obligations including general corporate activities and planned exploration expenditures, based on its cash position, its ability to modify planned activities or exploration programs and ability to pursue additional sources of financing, including further equity placements. Subsequent to period end, the Company completed a non-brokered private placement of units for gross proceeds of approximately $26.8 million (Note 17). The completion of this financing significantly strengthens the Company’s working capital position and enhances its overall liquidity. Moving forward, the Company will continue forecasting its cash flows to maintain liquidity and investigate opportunities to obtain further financin g through transactions such as equ ity placements, debt or joint venture arrangements, if necessary. c) Market risk Market risk is the risk of loss that may arise from chan ges in market factors such as interest rates, foreign exchange rates, and commodity and equity prices. The Company does not have a practice of trading derivatives. (i) Interest rate risk Interest rate risk is the risk that the fair values and future cash flows of the Company's financial instruments will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on its bank deposits, which is insignificant due to their short-term nature. The Company’s current
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 21 | Page policy is to invest excess cash in investment-grade sh ort-term deposit certificates issued by highly-rated financial institutions. The Company monitors the inve stments it makes and is satisfied with the credit ratings of its banks. As at August, 2025, the Co mpany held approximately $8.08 million (November 30, 2024 - $13.22 million) of its cash and cash equivalents in investment-grade short-term deposit certificates. (ii) Foreign currency risk The Company reports its financial results in Canadian dollars but also undertakes transactions denominated in US dollars and Mexican pesos. As the exchange rates between the Canadian dollar, US dollar and Mexican peso fluctuates, the Company e xperiences foreign exchange gains and losses. The Company has cash and cash equivalents, and accounts payable and accrued liabilities denominated in US dollars and Mexican pesos, all of which are subject to currency risk. The Company does not enter into any financial instruments to hedge currency risk, but the Company monitors its foreign exchange exposure and considers its exposure to foreign currency risk to be minimal as at August 31, 2025. (iii) Price risk The mining industry is heavily dependent upon the market price of the metals or minerals being mined. There is no assurance that, even if commercial quantities of mineral resources are discovered, a profitable market will exist for their sale. There can be no assu rance that mineral prices will be such that the Company’s properties can be mined at a profit. Factors beyond control of the Company may affect the marketability of any minerals discovered. The price of silver has experienced volatile and significant price movements over short periods of time and is affected by numerous factors beyond the Company’s control. The Company’s profitability and ability to raise capita l to fund exploration, evaluation and production activities is subject to risks associated with fluctuations in mineral prices. The Company closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company. 15. SUPPLEMENTAL CASH FLOW INFORMATION During the three and nine months ended August 31, 2025, the Company recognized right-of-use-assets of $Nil and $160,101 (August 31, 2024 - $Nil and $54,262) and corresponding lease liabilities under IFRS 16, which were non- cash transactions and excluded from the statement of cash flows. During the three and nine months ended August 31, 2025, the Company paid income tax of $Nil (August 31, 2024 - $Nil and $Nil). 16. CAPITAL MANAGEMENT The Company’s primary objectives in capital management ar e to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain sufficient funds to finance the acquisition and exploration of its exploration and evaluation assets. Capital is comprised of the Company’s shareholders’ equity. The Company manages its capital structure to maximize its financial flexibility by making adjustments to it in response to changes in economic conditions and the risk characteristics of the underlying assets and business opportunities. The Company does not presently utilize any quantitative measures to monitor its capital and is not subject to externally imposed capital requirements. The properties in which the Company currently has an inte rest are in the exploration stage and do not currently generate revenue; as such, the Company is dependent on external financing to fund its activities. The Company will spend its existing working capital and seek to raise additional amounts as needed by way of equity financing or debt to carry out its planned corporate development, general administrative costs and exploration and development programs. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so.
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APOLLO SILVER CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025, and August 31, 2024 (Stated in Canadian Dollars, unless otherwise noted) (Unaudited – Prepared by Management) 22 | Page 17. SUBSEQUENT EVENTS On October 1, 2025, the Company announced a non-brokered private placement (the “Offering”) of up to 5,800,000 units (each, a “Unit”) at a price of $3.60 per Unit for aggregate gross proceeds of up to $20,880,000. On October 3, 2025, due to strong investor demand, the Company increased the size of the Offering to 7,437,680 Units for aggregate gross proceeds of up to $26,775,648 (the “Upsized Offering”). Each Unit consists of one common share and one common share purchase warrant, wi th each warrant entitling the holder to purchase one additional common share at a price of $5.50 per share for a period of 24 months from the applicable closing date, subject to an acceleration provision whereby, if at any time after the date that is four months and one day following closing the Company’s shares trade on the TSX Venture Exchange at a closing price of $7.50 or greater per share for ten consecutive trading days, the Company may accelerate the expiry date of the warrants to 30 days following notice to holders. The Upsized Offering closed in two tranches. On October 23, 2025, the Company issued 6,981,707 Units for gross proceeds of $25,134,145.20. On October 28, 2025, the Company issued an additional 455,973 Units for gross proceeds of $1,641,503, completing the Upsized Offering for total gross proceeds of $26,775,648.20 through the issuance of 7,437,680 Units. In connection with subscripti ons received in the Upsized Offering, the Company will pay aggregate finder’s fees totaling $901,395.18, payable in cash and/or Units, in accordance with the policies of the TSX Venture Exchange. All securities issued under the Upsized Offering are subject to a four-month hold period in accordance with applicable securities laws.