Contango Silver & Gold — Q3 2026 Earnings Summary

Financial Performance:

• Reported a total loss from operations of $24.2 million for Q3 2026, compared to income from operations of $25.0 million in Q3 2025.
• Reported a net loss of $23.0 million ($0.66 per fully diluted share) for Q3 2026, compared to a net loss of $5.4 million ($0.44 per fully diluted share) in Q3 2025.
• Reported an adjusted net loss of $20.9 million for Q3 2026, compared to an adjusted net income of $24.9 million in Q3 2025.
• Cash and cash equivalents were $56.6 million as of September 30, 2026, down from $64.8 million as of December 31, 2025.
• Net cash used in operating activities was $109.1 million year-to-date (YTD) 2026, compared to $60.2 million provided by operating activities YTD 2025.
• Cash distributions received from the Peak Gold JV totaled $18.0 million YTD 2026, down from $87.0 million YTD 2025.
• Losses on derivative contracts were $2.0 million in Q3 2026, compared to $30.3 million in Q3 2025.
• Exploration expenditures increased to $26.9 million in Q3 2026, compared to $2.1 million in Q3 2025.
• Cash costs per ounce sold were $2,699 in Q3 2026, compared to $2,676 for the first nine months of 2026.
• All-in Sustaining Costs (AISC) per ounce sold were $2,909 in Q3 2026, compared to $2,854 for the first nine months of 2026.
• Average realized spot gold price was $4,275 per ounce in Q3 2026.

Guidance and Future Outlook:

• The fourth 2026 campaign is scheduled to commence in mid-November with anticipated production of 13,000 to 15,000 gold equivalent ounces net to Contango.
• The Company expects to meet the lower end of 2026 production guidance of 40,000 gold equivalent ounces.
• 2026 cash costs and AISC are guided at $2,700 and $2,900 per ounce of gold sold, respectively.
• A final cash distribution of $16 million is expected in the fourth quarter, bringing total 2026 cash distributions to $40 million.
• 2027 production and cost guidance is expected to be provided later in December 2026.
• An updated mineral resource estimate (MRE) for Kitsault Valley and Lucky Shot is targeted for the first half of 2027.
• An Initial Assessment (IA) for Kitsault Valley is targeted for release in late 2027.
• A feasibility study for Lucky Shot is targeted for release in late 2027.
• Underground exploration tunnel construction at Johnson Tract is scheduled to begin in 2027.

Business Segments and Product Lines:

• Manh Choh Mine (Peak Gold JV):
  • Contango's share of production sold in Q3 2026 totaled 7,333 ounces of gold and 5,349 ounces of silver.
  • Total gold equivalent ounces produced by Contango in Q3 2026 were 7,657.
  • Total gold sales for Contango in Q3 2026 were $31,349,035; total silver sales were $334,646.
  • Ore tons mined increased approximately 16% to 304,102 tons in Q3 2026 compared to Q2 2026.
  • Gold recovery improved to 86.5% in Q3 2026 from 80.4% in Q2 2026.
  • Operational improvements included the installation of a new oxygen sparging system, restoration of a cement addition system, and upgrades to the silo cone and screw.
  • The project transitioned from the north pit to the south pit, resulting in higher mining costs due to pre-stripping and higher copper/sulfide content requiring mill modifications.
  • Ore transportation to the Fort Knox mill is outperforming and expected to exceed the 2026 budget.
• Lucky Shot Project:
  • Completed surface and underground drilling programs totaling over 11,000 meters and 536 meters of underground tunnel development.
  • Commenced the next phase of underground drilling in mid-September with two rigs operating 24-7.
  • Completed the purchase of underlying lease and 2% net smelter return royalty for $16,074,000 in July 2026.
  • Recorded an addition of approximately $10.0 million to mineral properties for the Lucky Shot purchase in Q3 2026.
  • Targeting a high-grade Direct Shipping Ore (DSO) operation of 40,000 to 50,000 gold ounces per year.
• Kitsault Valley Project:
  • Completed 56,000 meters of drilling, roughly 40% more than the planned 40,000 meters, remaining on budget.
  • Updated MRE (as of September 11, 2026) includes 7.66 million tonnes of indicated resources (58.70 million oz Ag, 394.70 thousand oz Au) and 6.31 million tonnes of inferred resources (22.80 million oz Ag, 620.82 thousand oz Au).
  • Drill results included intervals of 13.90 meters grading 506 g/t AgEq and 4.96 meters grading 807 g/t AgEq.
• Johnson Tract Project:
  • Completed construction of a 2.6-mile access road and portal laydown area.
  • Expanded camp footprint to ready the site for expansion and year-round operations.
  • Advanced permitting through the FAST-41 program; a Section 404 permit was upheld by the U.S. District Court for the District of Alaska on September 14, 2026.

Market and Competitive Landscape:

• The Company operates in the mining industry with exposure to gold and silver price volatility.
• Contango holds a 30% interest in the Peak Gold JV, with the remaining 70% owned by KG Mining (Alaska), Inc., an indirect subsidiary of Kinross Gold Corporation.
• The Company's flagship Canadian asset comprises approximately 247,000 acres in British Columbia's Golden Triangle.
• The Company holds a lease on the Johnson Tract project (21,000 acres) and 100% ownership of the Lucky Shot project (8,600 acres).

Risks and Challenges:

• Production in Q3 2026 was below budget due to persistent above-average rainy conditions in September and reduced tons processed due to mine sequencing and ore characteristics changes.
• Higher mining costs are associated with the transition from the north pit to the south pit at Manh Choh.
• Increased direct operating costs are driven by higher diesel costs for ore transportation and increased reagents/consumables required to process higher copper and sulfide content.
• Reduced mining equipment availability occurred early in Q2 and Q3 2026.
• Forward-looking statements involve risks including operational risks, geology uncertainties, weather, financing availability, debt servicing, and regulatory approvals.

Management Commentary and Tone:

• CEO Rick Van Nieuwenhuyse stated the focus for the third quarter was to advance and de-risk the portfolio of advanced-stage exploration projects.
• Management expressed confidence in being on track to meet the lower end of 2026 production guidance.
• Management noted that operational enhancements continue to be made ahead of the fourth campaign.
• The tone regarding Kitsault Valley and Lucky Shot is one of active advancement, with significant drilling completed and permitting milestones achieved.

Other Key Points:

• Credit Facility Amendment: On July 1, 2026, the Company amended its Credit Agreement, eliminating 15,000 ounces of hedge contracts in exchange for a $33,732,426 increase in the secured credit facility and the purchase of 15,000 put option contracts. The aggregate principal outstanding increased to $46.3 million.
• Debt Repayment: In Q3 2026, the Company repaid $1.0 million on the amended credit facility, reducing the outstanding principal balance to $45.3 million.
• Hedge Contracts: The Company delivered 4,000 gold ounces into carry trade contracts and cash settled 15,000 ounces of maturing hedge contracts in Q3 2026, eliminating all remaining hedge delivery obligations except for 7,000 ounces of carry trade maturing December 31, 2026.
• ATM Program: On November 13, 2026, the Company entered into a Controlled Equity Offering Sales Agreement to offer and sell shares of common stock with an aggregate sales price of up to $75.0 million.
• Acquisition: The Company closed the purchase of mineral claims, property, equipment, and a 2% NSR royalty for the Lucky Shot Project on July 1, 2026, for a total consideration of $16,074,000, including a $10,000,000 secured promissory note.
• Dolly Varden Acquisition: The Company acquired the Dolly Varden project in Q1 2026, which added Kitsault Valley drilling costs to the current period with no comparable costs in Q3 2025.
• Cash Acquired: Cash acquired in the Dolly Varden acquisition was $36.0 million YTD 2026.
• Equity Issuances: Net proceeds from equity issuances were $63.4 million YTD 2026.
• Credit Facility Repayment Schedule: Remaining principal repayments are $1.0 million on December 31, 2026; $15.5 million on March 31, 2027; and $28.8 million on June 30, 2027.