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| Gibraltar (Cdn$ in thousands) | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | ||
| Gibraltar site operating costs (included in cost of sales) | 117,924 | 127,021 | 119,585 | 117,651 | 86,067 | ||
| Gibraltar capitalized stripping costs | 27,848 | 15,169 | 5,986 | 6,106 | 30,765 | ||
| Total site costs | 145,772 | 142,190 | 125,571 | 123,757 | 116,832 |
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Non-GAAP Performance Measures – Continued
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Adjusted net income (loss) and Adjusted EPS
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Adjusted net income (loss) removes the effect of the following transactions from net income (loss) as reported under IFRS Accounting Standards:
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- Unrealized foreign currency gains and losses;
- Unrealized gains and losses on derivatives (including any reversals for prior periods);
- Other operating costs;
- Realized gains on processing of ore stockpiles;
- Accretion on Cariboo consideration payable;
- Accretion on Florence royalty obligation;
- Realized costs of Florence financing obligations; and
- Tax effect of sale of non-controlling interest in New Prosperity
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Management believes that these transactions do not reflect the underlying operating performance of the Company’s core mining business and are not necessarily indicative of future operating results. Furthermore, unrealized gains and losses on derivative instruments, changes in the fair value of financial instruments, and unrealized foreign currency gains and losses are not necessarily reflective of the underlying operating results for the periods presented.
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Adjusted earnings per share (“Adjusted EPS”) is Adjusted net income (loss) attributable to common shareholders of the Company divided by the weighted average number of common shares outstanding for the period.
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| (Cdn$ in thousands) | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | ||
| Net income (loss) | 22,220 | 16,844 | 4,454 | (27,838) | ||
| Unrealized foreign exchange loss (gain) | 13,890 | 12,171 | (9,000) | 14,287 | ||
| Unrealized (gain) loss and fair value adjustments on derivatives | 3,750 | (9,582) | 37,676 | 14,977 | ||
| Accretion on Cariboo consideration payable | 1,765 | 1,261 | 4,048 | 4,041 | ||
| Accretion on Florence royalty obligation | 2,356 | 6,294 | 18,415 | 6,991 | ||
| Realized costs of Florence copper stream and royalty obligation | (1,875) | – | – | – | ||
| Estimated tax effect of adjustments | (1,619) | 547 | (14,068) | (6,874) | ||
| Adjusted net income | 40,487 | 27,535 | 41,525 | 5,584 | ||
| Adjusted EPS | $0.11 | $0.08 | $0.11 | $0.02 | ||
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Non-GAAP Performance Measures – Continued
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| (Cdn$ in thousands) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | ||
| Net income (loss) | 21,868 | (28,560) | (21,207) | (180) | ||
| Unrealized foreign exchange (gain) loss | (40,335) | 2,074 | 40,462 | (7,259) | ||
| Unrealized loss (gain) and fair value adjustments on derivatives | 9,489 | 23,536 | (25,514) | 1,821 | ||
| Accretion on Cariboo consideration payable | 4,484 | 664 | 4,543 | 9,423 | ||
| Accretion on Florence royalty obligation | 6,201 | 2,571 | 3,682 | 3,703 | ||
| Other operating costs | – | – | 4,132 | 4,098 | ||
| Realized gain on processing of ore stockpiles1 | – | – | 1,905 | 3,266 | ||
| Tax effect of sale of non-controlling interest in New Prosperity | (9,285) | – | – | – | ||
| Estimated tax effect of adjustments | (5,447) | (7,228) | 2,465 | (6,644) | ||
| Adjusted net income (loss) | (13,025) | (6,943) | 10,468 | 8,228 | ||
| Adjusted EPS | $(0.04) | $(0.02) | $0.03 | $0.03 | ||
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Adjusted EBITDA
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Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is presented as a supplemental measure of the Company’s performance and ability to service debt. Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry, many of which present adjusted EBITDA when reporting their results. Issuers of “high yield” securities also present adjusted EBITDA because investors, analysts and rating agencies considering it useful in measuring the ability of those issuers to meet debt service obligations.
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Adjusted EBITDA represents net income before interest, income taxes, depreciation and amortization, and also eliminates the impact of a number of transactions that are not considered indicative of ongoing operating performance. Certain items of expense are added back and certain items of income are deducted from net income that are not likely to recur or are not indicative of the Company’s underlying operating results for the reporting periods presented or for future operating performance and consist of:
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- Unrealized foreign exchange gains and losses;
- Unrealized gains and losses on derivative (including any reversals for prior periods);
- Realized costs of Florence financing obligations;
- Amortization of share-based compensation expense;
- Other operating costs; and
- Realized gains on processing of ore stockpiles.
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Non-GAAP Performance Measures – Continued
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| (Cdn$ in thousands) | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | ||
| Net income (loss) | 22,220 | 16,844 | 4,454 | (27,838) | ||
| Depletion and amortization | 39,839 | 29,166 | 27,207 | 27,974 | ||
| Finance and accretion expenses | 24,932 | 20,214 | 36,925 | 24,888 | ||
| Finance income | (1,058) | (1,474) | (1,098) | (1,368) | ||
| Income tax expense | 18,891 | 16,657 | 13,096 | 2,918 | ||
| Unrealized foreign exchange loss (gain) | 13,890 | 12,171 | (9,000) | 14,287 | ||
| Unrealized (gain) loss and fair value adjustments on derivatives | 3,750 | (9,582) | 37,676 | 14,977 | ||
| Realized costs of Florence copper stream and royalty obligation | (1,875) | – | – | – | ||
| Share-based compensation expense | 4,505 | 9,467 | 7,204 | 6,299 | ||
| Adjusted EBITDA | 125,094 | 93,463 | 116,464 | 62,137 | ||
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| (Cdn$ in thousands) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | ||
| Net income (loss) | 21,868 | (28,560) | (21,207) | (180) | ||
| Depletion and amortization | 25,210 | 22,425 | 24,641 | 20,466 | ||
| Finance and accretion expenses | 23,943 | 18,877 | 21,473 | 25,685 | ||
| Finance income | (124) | (1,330) | (1,674) | (1,504) | ||
| Income tax expense (recovery) | (27,439) | (7,980) | 11,707 | (200) | ||
| Unrealized foreign exchange loss (gain) | (40,335) | 2,074 | 40,462 | (7,259) | ||
| Unrealized loss (gain) and fair value adjustments on derivatives | 9,489 | 23,536 | (25,514) | 1,821 | ||
| Share based compensation expense (recovery) | 4,820 | 5,349 | (323) | 1,496 | ||
| Other operating costs | – | – | 4,132 | 4,098 | ||
| Realized gain on processing of ore stockpiles | – | – | 1,905 | 3,266 | ||
| Adjusted EBITDA | 17,432 | 34,391 | 55,602 | 47,689 | ||
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Earnings from mining operations before depletion, amortization and non-recurring items
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Earnings from mining operations before depletion, amortization and non-recurring items is earnings from mining operations with depletion and amortization, and any items that are not considered indicative of ongoing operating performance added back. The Company discloses this measure, which has been derived from the Company’s financial statements and applied on a consistent basis, to assist in understanding the results of the Company’s operations and financial position, and it is meant to provide further information about the financial results to investors.
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| Three months ended June 30, | Six months ended June 30, | |||||
| (Cdn$ in thousands) | 2026 | 2025 | 2026 | 2025 | ||
| Earnings (loss) from mining operations | 114,732 | (502) | 199,175 | 15,864 | ||
| Add: | ||||||
| Depletion and amortization | 39,245 | 25,210 | 68,411 | 47,635 | ||
| Other operating costs | – | (4,008 ) | 952 | (4,008) | ||
| Earnings from mining operations beforedepletion, amortization and non-recurring items | 153,977 | 20,700 | 268,538 | 59,491 | ||
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Non-GAAP Performance Measures – Continued
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Gibraltar site operating costs per ton milled
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The Company discloses this measure, which has been derived from the Company’s financial statements and applied on a consistent basis, to assist in understanding the Company’s Gibraltar site operations on a tons milled basis.
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| Gibraltar (Cdn$ in thousands) | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | ||
| Gibraltar site operating costs (included in cost of sales) | 117,924 | 127,021 | 119,585 | 117,651 | 86,067 | ||
| Gibraltar tons milled (thousand tons) | 7,159 | 7,000 | 7,200 | 7,852 | 7,663 | ||
| Site operating costs per ton milled | $16.47 | $18.15 | $16.61 | $14.98 | $11.23 |
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Technical Information
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The technical information contained in this MD&A related to Florence Copper is based on the report titled “NI 43-101 Technical Report – Florence Copper Project, Pinal County, Arizona” issued on March 30, 2023 with an effective date of March 15, 2023 (the “Florence 2023 Technical Report”), which is available on SEDAR+. The Florence 2023 Technical Report was prepared under the supervision of Richard Tremblay, P. Eng., MBA, Richard Weymark, P. Eng., MBA, and Robert Rotzinger, P. Eng. Mr. Tremblay is employed by the Company as Chief Operating Officer, Mr. Weymark is employed by the Company as Vice President, Engineering, and Mr. Rotzinger is employed by the Company as Vice President, Capital Projects. All three are Qualified Persons as defined by NI 43-101.
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The technical information contained in this MD&A related to Yellowhead is based on the report titled “Technical Report Update on the Yellowhead Copper Project, British Columbia, Canada” issued on July 10, 2025 with an effective date of June 15, 2025 (the “Yellowhead 2025 Technical Report”), which is available on SEDAR+. The Yellowhead 2025 Technical Report was prepared under the supervision of Richard Weymark, P. Eng., MBA, Jeremy Guichon, P. Eng., and Adil Cheema, P. Eng. Mr. Weymark is employed by the Company as Vice President, Engineering, Mr. Guichon is employed by the Company as Director, Mine Engineering, and Mr. Cheema is employed by the Company as Director, Process Engineering. All three are Qualified Persons as defined by NI 43-101.
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No regulatory authority has approved or disapproved of the information contained in this news release
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Caution Regarding Forward-Looking Information
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This document contains “forward-looking statements” that were based on Trekor’s expectations, estimates and projections as of the dates as of which those statements were made. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “outlook”, “anticipate”, “project”, “target”, “believe”, “estimate”, “expect”, “intend”, “should” and similar expressions.
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Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These included but are not limited to:
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- uncertainties about the future market price of copper and the other metals that we produce or may seek to produce;
- changes in general economic conditions, the financial markets and in the market price for our input costs including due to inflationary impacts, such as diesel fuel, acid, steel, concrete, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar, and the continued availability of capital and financing;
- inherent risks associated with mining operations, including our current mining operations at Gibraltar and Florence Copper, and their potential impact on our ability to achieve our production estimates;
- our high level of indebtedness and its potential impact on our financial condition and the requirement to generate cash flow to service our indebtedness and refinance such indebtedness from time to time;
- any increases in interest rates may increase our borrowing costs and impact the profitability of our operations;
- the amounts we are required to pay for our acquisition of Cariboo will increase with higher copper prices;
- the risk of inadequate insurance or inability to obtain insurance to cover our business risks;
- uncertainties related to the accuracy of our estimates of Mineral Reserves (as defined below), Mineral Resources (as defined below), production rates and timing of production, future production and future cash and total costs of production and milling;
- the risk that we may not be able to expand or replace Mineral Reserves as our existing Mineral Reserves are mined;
- the risk that the ramp-up of the Florence Copper commercial production facility does not proceed within projected timelines or cost estimates, or that initial operations do not achieve results consistent with the projections in the Florence Copper Technical Report, including with respect to operating costs, revenue, sustaining capital, rates of return and cash flows from operations;
- our ability to comply with all conditions imposed under the APP and UIC permits for the operation of Florence Copper;
- the availability of, and uncertainties relating to, any additional financing necessary for the continued ramp-up and commercial operation of Florence Copper, including with respect to our ability to obtain any additional financing, if needed, to continue and expand commercial operations at Florence Copper;
- shortages of water supply, critical spare parts, acid, diesel, maintenance service and new equipment and machinery or our ability to manage surplus water on our mine sites may materially and adversely affect our operations and development projects;
- our ability to comply with the extensive governmental regulation to which our business is subject;
- uncertainties related to our ability to obtain necessary title, licenses and permits for our development projects and project delays due to third party opposition;
- uncertainties related to Indigenous people’s claims and rights, and legislation and government policies regarding the same;
- our reliance on the availability of infrastructure necessary for development and on operations, including on rail transportation and port terminals for shipping of our copper concentrate production from Gibraltar, and rail transportation and power for the feasibility of our other British Columbia development projects;
- uncertainties related to unexpected judicial or regulatory proceedings;
- changes in, and the effects of, the laws, regulations and government policies affecting our exploration and development activities and mining operations;
- potential changes to the mineral tenure system in British Columbia, which is undergoing reform including for compliance with the British Columbia Declaration on the Rights of Indigenous Peoples Act (“DRIPA”);
- our dependence solely on our 100% interest in Gibraltar and in due course, Florence Copper for our revenues and our operating cash flows;
- our ability to extend existing concentrate off-take agreements and cathode purchase agreements or enter into new agreements;
- environmental issues and liabilities associated with mining including processing and stockpiling ore;
- labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mines, industrial accidents, equipment failure or other events or occurrences, including third party interference that interrupt the production of minerals in our mines;
- environmental hazards and risks associated with climate change, including the potential for damage to infrastructure and stoppages of operations due to extreme cold, extreme heat, forest fires, flooding, drought, earthquakes or other natural events in the vicinity of our operations;
- litigation risks and the inherent uncertainty of litigation;
- our actual costs of reclamation and mine closure may exceed our current estimates of these liabilities;
- our ability to renegotiate our existing union agreement for Gibraltar when it expires in May 2027;
- the capital intensive nature of our business both to sustain current mining operations and to develop any new projects;
- our ability to develop new mining projects in British Columbia may be impacted by joint decision-making and consent agreements being implemented by the Government of British Columbia with First Nations under DRIPA;
- The ability to develop the New Prosperity Project is subject to the restrictions set out in our June 2025 Tripartite Agreement with the Province of British Columbia and the Tŝilhqot’in Nation (the “Teẑtan Biny Agreement”), under which the New Prosperity Project is subject to a land use planning process with the Province of British Columbia and we are not permitted to be the proponent of any development of the New Prosperity Project;
- our reliance upon key personnel;
- the competitive environment in which we operate;
- the effects of forward selling instruments to protect against fluctuations in copper prices and other input costs including diesel and acid;
- the risk of changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates;
- uncertainties relating to the war in Ukraine, the escalating military conflict involving Iran and broader Middle East instability, and other future geopolitical events including social unrest, which could disrupt financial markets, commodity markets, supply chains, the price and availability of energy, availability of materials and equipment and execution timelines for any project development;
- uncertainties relating to the delivery of oil through the Strait of Hormuz resulting from Middle East instability, which could have an adverse effect on global economic activity and potentially increase operating costs generally and reduce global demand for copper, and have a material adverse effect on our business, operations, and the feasibility of our development projects;
- changes to U.S. trade policies and tariff measures, including retaliatory tariffs imposed or threatened by Canada and other trading partners, may adversely impact overall economic conditions, copper markets, supply chains, metal prices and input costs; and
- other risks detailed from time-to-time in our annual information forms, annual reports, MD&A, quarterly reports and material change reports filed with and furnished to securities regulators, and those risks which are discussed under the heading “Risk Factors”.
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For further information on Trekor, investors should review the Company’s annual report on Form 40-F filed with the United States Securities and Exchange Commission and available at www.sec.gov and home jurisdiction filings that are available at www.sedarplus.ca.
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