Earnings Call - SOLARIS RESOURCES INC

Explicit Guidance:

• Permitting Timeline: Technical Environmental Impact Assessment (EIA) approval expected in Q1 2026; full project permitting targeted for the first half of 2027.
• Financial Decision & Funding: Final Investment Decision (FID) targeted for the back end of 2027.
• Feasibility Study: Full Feasibility Study (FS) currently in progress with a delivery target of the first half of 2027.
• Pre-feasibility Study: Delivered in November 2025 (cited as a past milestone establishing the basis for the FS).

Business-Segment Outlook:

• Wurinsa Project (Primary Asset): Described as a near-term project with a 55+ year life of mine and 5.8 billion tons of resources. Designed as a 165,000 ton/day open-pit concentrator with "tier one" quality and significant free cash generation potential post-FID.
• Peruvian Assets (Paco Orco & Capricho): Drilling operations scheduled to commence in early 2027.
• Strategic Divestment/Spin-out: Potential to spin out non-core Peruvian assets to shareholders at an unspecified future "right time" to drive value, contingent on successful de-risking.
• Exploration Upside: Continued exploration on the 260 sq km land package, specifically targeting the "Tinky concessions" in the southeastern tenements where potassic alteration resembles a large porphyry system. Drill permits are pending, with drilling expected "relatively shortly."

Market and Competitive Outlook:

• Regional Context: Ecuador's southeastern mining corridor is characterized as mature and well-accepted, hosting two large producers (Mirador and Fruta del Norte) within 40–70 km.
• Structural Demand: Management views the region as a primary destination for future large-scale porphyry deposits, noting a profound geological profile extending from Chile/Peru through Ecuador and Colombia.
• Currency & Stability: Operates in a USD-denominated environment with a history of long-term protection agreements across successive governments (left, center, and right).

Macro / Industry Outlook:

• Government Policy: The current Noboa government is identified as highly focused on mining, which is the third-largest export pillar and a key driver of economic growth.
• Regulatory Environment: Project advancement relies on finalizing the exploitation contract with the state, tailings/water permits, and energy permits.
• Social License: Significant progress in free, prior, and informed consultation (FPIC), collective agreements, and community relocation agreements, viewed as a precursor to the natural progression of other permits.

Strategic Initiatives:

• Funding Strategy: Pursuing a standalone financing solution combining project-level debt (potentially via EPC/EPCM structures) and precious metal streaming (gold/silver byproducts).
• Streaming History & Future: A small stream concluded in May 2025 (12% of gold content price, 6% of metal volume). Future financing may involve streaming additional byproducts.
• Supply Chain: Exploring government debt and supply chain independence as potential financing or partnership avenues.
• Partnerships: Actively seeking partners for expertise and capital, emphasizing that partners must bring the "right caliber" and "impetus" rather than just financial capital.

Risks and Headwinds to Outlook:

• Permitting Dependencies: Remaining critical path items include the finalization of the exploitation contract, tailings permits, water permits, energy permits, and the successful crystallization of social license agreements (relocation/collective agreements).
• Exploration Risk: Future value from the Tinky concessions and the non-core portfolio is contingent on successful drill results and regulatory approval.
• Financing Complexity: Dependence on securing the right mix of debt, streaming, and partnerships without equity attachments to major miners, which could delay FID if solutions are not aligned.
• Regulatory Finalization: Finalizing the exploitation contract with the state is a specific, near-term regulatory hurdle.

Management Tone on the Future:

• Confidence Level: High confidence in the asset's quality ("tier one," "unique," "global scale") and the regulatory/social environment in Ecuador.
• Strategic Flexibility: Emphasized repeatedly as a key advantage, particularly regarding the ability to fund via streams/debt and the optionality to spin out non-core assets.
• Urgency: Uses phrases like "full speed full speed ahead" regarding the Feasibility Study and characterizes the project as "near-term" and "very unique" in terms of delivery speed relative to other global assets.
• Hedges: While optimistic, management notes that permit approvals are dependent on the social license being accepted first ("will fall into place naturally"), and partnership criteria are strict ("right caliber," "right impetus").

Miscellaneous:

• Project Capacity: 165,000 tons per day concentrator design.
• Resource Base: 5.8 billion tons total resources.
• Byproduct Credits: Significant credit expected from Molle, gold, and silver.
• Non-Core Assets: Includes La Verde joint venture (60:40 favoring Solaris) and an early-stage asset in Chile.