# Q2 – Six months ended Jun. 30, 2026 - MD&A

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Original source: https://www.ithmines.com/_resources/financials/quarterly-reports/2026/ITH-SEDAR-MDA-Jun-30-2026.pdf?v=091207
EGM generated: 2026-09-27
Company: International Tower Hill Mines Ltd. (THM)

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# Q2 – Six months ended Jun. 30, 2026 - MD&A

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# Q2 – Six months ended Jun. 30, 2026 - MD&A
INTERNATIONAL TOWER HILL MINES LTD.
For the quarterly period ended June 30, 2026
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should
be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 as well as the “Forward
Looking Statements” legend contained elsewhere in this report. All currency amounts are stated in U.S. dollars unless noted
otherwise. References to C$ refer to Canadian currency.
Current Business Activities
General
International Tower Hill Mines Ltd. (“ITH” or the “Company”) consists of ITH and its wholly-owned subsidiaries Tower Hill
Mines, Inc. (“TH Alaska”) (an Alaska corporation), Tower Hill Mines (US) LLC (“TH US”) (a Colorado limited liability
company), and Livengood Placers, Inc. (“LPI”) (a Nevada corporation). The Company is in the business of acquiring, exploring
and evaluating mineral properties, and either joint venturing or developing these properties further or disposing of them when
the evaluation is completed. The Company currently holds or has the right to acquire interests in a development stage project
in Alaska referred to as the “Livengood Gold Project” or the “Project”. The Company has not yet begun extraction of
mineralization from the deposit or reached commercial production. The Company has a 100% interest in the Livengood Gold
Project, which as of December 31, 2025, has proven and probable reserves of 430.1 million tonnes at an average grade of 0.65
g/tonne (9.0 million ounces) based on a gold price of $1,680 per ounce and a measured and indicated mineral resource, exclusive
of mineral reserves, of 274.51 million tonnes at an average grade of 0.52 g/tonne (4.62 million ounces), based on a gold price
of $1,650 per ounce, both as reported in the Technical Report Summary attached as Exhibit 96.1 to the Company’s Annual
Report on Form 10-K/A for the year ended December 31, 2022, filed with the SEC on October 17, 2023. A more complete
description of the Livengood Gold Project, including detailed presentation of resources and reserves, is set forth in Part I, Item
2. Properties of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on
March 11, 2026.
Recent Developments
Livengood Gold Project
On January 27, 2026, the Company completed a public offering (the “Public Offering”) of 33,672,000 Common Shares, which
included 4,392,000 Common Shares issued pursuant to the full exercise by the underwriters of their option to purchase
additional Common Shares in connection with the Public Offering. The Public Offering was priced at a price to the public of
$2.22 per Common Share, resulting in gross proceeds of approximately $74.8 million to the Company, before deducting
underwriting discounts and estimated offering expenses. Concurrent with the closing of the Public Offering, the Company
closed a US$40 million private placement (the “Concurrent Private Placement”) of 18,018,018 Common Shares to affiliates of
Paulson, a related party of the Company, at the same offering price, resulting in total gross proceeds from the Public Offering
and the Concurrent Private Placement to the Company of approximately $114.8 million. On January 29, 2026, affiliates of
Paulson subscribed for an additional 1,501,982 Common Shares as part of the Concurrent Private Placement at the same
offering price for additional proceeds of approximately US$3.3 million to the Company, representing a proportional increase
to Paulson’s investment to account for the upsize in the Public Offering and exercise of the corresponding underwriters’ option.
The Company expects to use the net proceeds of the Offering and the Concurrent Private Placement to fund the exploration
and development of the Livengood Gold Project, including drilling, metallurgical studies, feasibility studies, technical studies,
baseline environmental studies, detailed engineering in support of permitting, permitting, legal support, community
engagement, mineral lease and land payments, acquisitions and general corporate purposes.
The 2026 work program will include obtaining metallurgical samples by core drilling, metallurgical test work, initiating
feasibility studies, and advancing ongoing baseline environmental data collection and community engagement. This 2026 work
program is anticipated to cost $20-25 million.
On April 13, 2026, the Company announced that it had awarded Livengood Gold Project Feasibility Study Phase 1 contracts
to a consortium comprised of BBA Consultants USA LP, (“BBA”), Hatch Ltd, (“Hatch”), Newfields Mining Design and
Technical Services LLC (“Newfields”) Resource Development Associates, Inc. (“RDS”) and JDS Energy and Mining Inc.
(“JDS”).
1
The Company also announced that core drilling to support the feasibility study had commenced. Alloy Drilling Inc., an Alaska-
based drilling contractor with operations throughout the western United States, mobilized two rigs to Livengood and began
drilling large-diameter PQ core holes in April within the 9.0 million ounce gold reserve. The drilling program is designed to
provide representative fresh ore samples for advanced metallurgical testing and process optimization work. By June 30, 2026,
10 of the approximately 20 planned holes had been completed.
The metallurgical testwork on this fresh core will focus on evaluating opportunities to enhance gold recoveries and overall
project economics in the context of a substantially higher gold price than the $1,680 per ounce assumption utilized in the
Company’s prior study.
BBA, Newfields, JDS and RDA each bring industry-leading expertise and Livengood Gold Project experience as co-authors
of the Company’s 2017 and 2023 Pre-Feasibility Studies. Hatch has been added to the team to provide additional expertise in
POX processing, metallurgical optimization and trade-off studies. The parties will collaborate across technical disciplines
where appropriate, with BBA leading overall integration and coordination of the feasibility study deliverables.
Results of Operations
Summary of Quarterly Results
Description June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025
Net income (loss) $ (3,383,754) $ 2,274,143 $ (1,311,876) $ (732,303)
Basic and diluted net income (loss) per common share $ (0.01) $ 0.01 $ (0.01) $ (0.00)
June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024
Net loss $ (1,925,086) $ (669,068) $ (954,847) $ (667,302)
Basic and diluted net loss per common share $ (0.01) $ (0.00) $ (0.01) $ (0.00)
Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025
The Company had a net loss of $3,383,754 for the three months ended June 30, 2026, compared to a net loss of $1,925,086 for
the three months ended June 30, 2025.
Mineral property expenditures were $5,354,879 for the three months ended June 30, 2026, compared to $801,909 for the three
months ended June 30, 2025. The increase of $4,552,970 was primarily due to increased activity on the Livengood Gold Project
of $2,896,190 for drilling-related activities, $1,578,077 for field services and supplies to support the drilling programs,
increased expenses for land-related legal of $66,264, and land-related fees of $12,439.
Excluding share-based costs of $154,250 and $59,470 for the three months ended June 30, 2026 and June 30, 2025, respectively,
wages and benefits were $498,294 for the three months ended June 30, 2026 compared to $228,363 for the three months ended
June 30, 2025. The increase of $269,931 was primarily due to the addition of four new employees for $223,822 and the Chief
Executive Officer salary returning to 100% reflecting the additional work required to advance the Livengood Gold Project
through feasibility study and permitting for $46,109.
Excluding share-based costs of $567,357 and $382,682 for the three months ended June 30, 2026 and June 30, 2025,
respectively, consulting fees were $108,713 for the three months ended June 30, 2026 compared to $56,672 for the three months
ended June 30, 2025. The increase of $52,041 was primarily due to an increase in investor relations services provided of
$31,323 and an increase in other consulting fees of $20,718.
Professional fees were $107,496 and $56,572 for the three months ended June 30, 2026 and June 30, 2025, respectively. The
increase of $50,924 is due primarily to increased fees for legal of $27,703 and recruiting of $24,841, and decreased fees due to
timing variances for accounting and auditing services of $1,620.
Travel costs were $28,616 and $2,305 for the three months ended June 30, 2026 and June 30, 2025, respectively. The increase
of $26,311 was primarily due to increased travel related to the current project activities.
Excluding share-based costs of $11,017 and $4,248 for the three months ended June 30, 2026 and June 30, 2025, respectively,
investor relations costs were $45,468 for the three months ended June 30, 2026 compared to $29,591 for the three months
ended June 30, 2025. The increase of $15,877 was primarily due to increased mailing and filing costs related to the Annual
General Shareholder meeting on May 27, 2026.
Insurance costs were $42,869 and $65,136 for the three months ended June 30, 2026 and June 30, 2025, respectively. The
decrease of $22,267 is primarily due to an agent change.
2
Excluding share-based payments, all other operating expense categories reflected only moderate changes period over period.
Share - based payment charges
Share-based payment charges for the three-month periods ended June 30, 2026 and 2025 were allocated as follows:
Expense category: June 30, 2026 June 30, 2025
Consulting $ 567,357 $ 382,682
Investor relations 11,017 4,248
Wages and benefits 154,250 59,470
Total $ 732,624 $ 446,400
Share-based payment charges were $732,624 during the three months ended June 30, 2026 compared to $464,400 during the
three months ended June 30, 2025. The increase of $286,224 was mainly the result of equity compensation issued or granted
to certain directors and employees of the Company on May 27, 2026, as compared to the three months ended June 30, 2025.
Other items amounted to total other income of $3,615,757 during the three-month period ended June 30, 2026 compared to
total other expense of $161,552 during the three-month period ended June 30, 2025. As a result of the impact of exchange rates
on certain of the Company’s U.S. dollar cash balances, the Company had a foreign exchange gain of $2,134,885 during the
three-month period ended June 30, 2026, compared to a loss of $190,324 during the three-month period ended June 30, 2025.
The average exchange rate during the three-month period ended June 30, 2026 was C$1 to $0.7225, compared to C$1 to $0.7226
during the three-month period ended June 30, 2025. Interest income was $1,480,872 for the three-month period ended June 30,
2026, compared to $28,772 for the three-month period ended June 30, 2025. The increase of $1,452,100 was primarily due to
the investment of the net proceeds of the Public Offering and the Concurrent Private Placement in short-term certificates of
deposit.
Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025
The Company had a net loss of $1,109,611 for the six months ended June 30, 2026, compared to a net loss of $2,594,154 for
the six months ended June 30, 2025.
Mineral property expenditures were $5,608,987 for the six months ended June 30, 2026, compared to $950,396 for the six
months ended June 30, 2025. The increase of $4,658,591 was primarily due to incre

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