HSLV Financial Statements Q3 2025

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# HSLV FS Q3 2025 FINAL

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# HSLV FS Q3 2025 FINAL
Highlander Silver Corp.
Condensed Consolidated Interim Financial Statements
For the three and nine months ended June 30, 2025 and 2024
(Unaudited)
Highlander Silver Corp.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited – in Canadian Dollars)
June 30, 2025 September 30, 2024 October 1, 2023
Note (Restated – Note 3) (Restated – Note 3)
Assets
Current assets
Cash and cash equivalents $ 24,281,664 $ 2,500,894 $ 229,702
Receivables 7 54,736 275,000 –
Prepaids and other 145,541 25,536 14,268
Value-added tax receivable 199,214 15,357 8,904
24,681,155 2,816,787 252,874
Reclamation deposit 59,610 59,052 11,096
Property and equipment 210,950 94,523 –
Mineral property interests 4 11,509,553 10,758,885 44,013
Value-added tax receivable 22,311 89,730 –
Total assets $ 36,483,579 $ 13,818,977 $ 307,983
Liabilities and Equity
Current liabilities
Accounts payable and accrued liabilities 7 $ 1,104,824 $ 372,481 $ 234,986
Consideration payable 4 1,705,375 1,687,375 –
2,810,199 2,059,856 234,986
Non-current liabilities
Consideration payable 4 – 1,687,375 –
Reclamation provision 5 572,201 492,426 –
Total liabilities 3,382,400 4,239,657 234,986
Equity
Common shares 6 50,221,727 19,524,567 7,219,766
Reserves 6 2,855,724 1,724,026 1,385,293
Commitment to issue shares 6 – 46,319 46,319
Foreign currency reserve 100,762 (432,731) (63,899)
Deficit (20,077,034) (11,282,861) (8,514,482)
Total equity 33,101,179 9,579,320 72,997
Total liabilities and equity $ 36,483,579 $ 13,818,977 $ 307,983
Nature of operations and going concern (Note 1)
Commitments (Note 14)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
1
Highlander Silver Corp.
Condensed Consolidated Interim Statements of Net Loss and Comprehensive Loss
For the three and nine months ended June 30, 2025 and 2024
(Unaudited – in Canadian Dollars, except share amounts)
Three months ended June 30, Nine months ended June 30,
2025 2024 2025 2024
(Restated – (Restated –
Note Note 3) Note 3)
Exploration expenses 10 $ 3,458,000 $ 338,970 $ 4,630,199 $ 842,354
General and administrative expenses 11 1,731,474 71,172 4,102,514 1,177,014
Loss from operations 5,189,474 410,142 8,732,713 2,019,368
Gain on disposal of equipment – (7,511) (137,294) (11,827)
Finance cost 95,009 – 231,796 –
Interest and other income (210,437) (44,197) (335,495) (95,532)
Foreign exchange (income) loss (116,960) – 135,134 –
Write-off of mineral property interests – 174 – 36,660
Write-off of receivables 12 5,649 – 182,052 –
Net loss 4,962,735 358,608 8,808,906 1,948,669
Other comprehensive (income) loss
Items that may be reclassified to profit or loss:
Foreign currency translation 216,867 857,941 (533,493) 956,587
Total comprehensive loss $ 5,179,602 $ 1,216,549 $ 8,275,413 $ 2,905,256
Net loss per share attributable to:
Shareholders of the Company
Basic and diluted $ 0.05 $ 0.00 $ 0.10 $ 0.03
Weighted average number of shares outstanding
Basic and diluted 105,053,403 72,551,350 91,161,778 62,468,456
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
2
Highlander Silver Corp.
Condensed Consolidated Interim Statements of Cash Flows
For the three and nine months ended June 30, 2025 and 2024
(Unaudited – in Canadian Dollars)
Three months ended June 30, Nine months ended June 30,
2025 2024 2025 2024
(Restated – (Restated
Note Note 3) – Note 3)
Cash provided by (used in):
Operations
Net loss for the period $ (4,962,735) $ (358,608) $ (8,808,906) $ (1,948,669)
Adjustments for:
Depreciation 6,922 345 13,426 2,849
Finance cost 95,009 – 231,796 –
Foreign exchange (162,013) (4,886) (133,829) (4,886)
Gain on disposal of equipment – – (137,294) –
Interest income (209,278) (24,382) (287,076) (60,964)
Reclamation provision 31,212 – 31,212 –
Share-based compensation 6 476,897 – 1,580,194 599,005
Write-off of mineral property interests – 174 – 36,660
Write-off of receivables 5,649 – 182,052 –
Net changes in non-cash working capital
items:
Receivables (363) 36,358 38,212 36,358
Value-added tax receivable (96,166) 5,420 (116,438) (2,898)
Prepaid and other (125,463) (16,868) (120,005) (25,405)
Accounts payable and accrued liabilities 671,842 105,097 732,343 31,764
Reclamation provision settlement (935) – (935) –
(4,269,422) (257,350) (6,795,248) (1,336,186)
Financing
Proceeds from private placement, net of
share issue costs 6 – 9,206,900 30,036,728 12,188,380
Finance costs paid (213,367) – (213,367) –
Proceeds from exercise of options 6 – – 86,600 –
Proceeds from exercise of warrants 6 90,000 3,750 93,750 3,750
(123,367) 9,210,650 30,003,711 12,192,130
Investing
Mineral property interest 4 (22,349) (174) (22,349) (36,660)
Milestone payment under acquisition
agreement with SSR Mining 4 (1,701,500) – (1,701,500) –
Property and equipment (74,140) (11) (113,056) (2,196)
Interest income received 209,278 9,334 287,076 9,334
Proceeds from disposal of equipment – 36 137,294 7,490
Acquisition of Reliant Ventures S.A.C. – (6,904,791) – (6,904,791)
Cash acquired on purchase of Reliant
Ventures S.A.C. – 167,237 – 167,237
(1,588,711) (6,728,369) (1,412,535) (6,759,586)
Effect of exchange rate changes on cash and
cash equivalents (30,990) (810,736) (15,158) (926,034)
Increase (decrease) in cash and cash
equivalents (6,012,490) 1,414,195 21,780,770 3,170,324
Cash and cash equivalents, beginning of period 30,294,154 1,985,831 2,500,894 229,702
Cash and cash equivalents, end of period $ 24,281,664 $ 3,400,026 $ 24,281,664 $ 3,400,026
Supplemental cash flow information (Note 8)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
3
Highlander Silver Corp.
Condensed Consolidated Interim Statements of Changes in Equity
For the nine months ended June 30, 2025 and 2024
(Unaudited – in Canadian Dollars, except number of shares)
Commitment Foreign
Number of to issue currency Total
Shares Amount Reserves shares reserve Deficit equity
Balance, October 1, 2024 (Restated) 81,221,620 $ 19,524,567 $ 1,724,026 $ 46,319 $ (432,731) $ (11,282,861) $ 9,579,320
Private placement, net of share issue costs 23,000,000 30,036,728 – – – – 30,036,728
Fair value reversal on expired stock options – – (14,733) – – 14,733 –
Shares issued on exercise of warrants and
stock options 1,249,365 614,113 (433,763) – – – 180,350
Share-based compensation – – 1,580,194 – – – 1,580,194
Reclassification of commitment to issue
shares to common shares – 46,319 – (46,319) – – –
Net loss and comprehensive loss – – – – 533,493 (8,808,906) (8,275,413)
Balance, June 30, 2025 105,470,985 $ 50,221,727 $ 2,855,724 $ – $ 100,762 $ (20,077,034) $ 33,101,179
Balance, October 1, 2023 (Restated) 30,460,475 $ 7,219,766 $ 1,385,293 $ 46,319 $ (63,899) $ (8,514,482) $ 72,997
Private placement, net of share issue costs 50,514,222 12,163,457 – – – 24,923 12,188,380
Fair value reversal on expired stock options – – (291,893) – – 291,893 –
Shares issued on exercise of warrants 25,000 3,750 – – – – 3,750
Share-based compensation – – 599,005 – – – 599,005
Translation adjustment for the period – – – – – 30,553 30,553
Net loss and comprehensive loss – – – – (956,587) (1,948,669) (2,905,256)
Balance, June 30, 2024 80,999,697 $ 19,386,973 $ 1,692,405 $ 46,319 $ (1,020,486) $ (10,115,782) $ 9,989,429
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
4
Highlander Silver Corp.
Notes to the Condensed Consolidated Interim Financial Statements
For the three and nine months ended June 30, 2025 and 2024
(Unaudited – in Canadian Dollars, unless otherwise noted)
1. NATURE OF OPERATIONS AND GOING CONCERN
Highlander Silver Corp. (the “Company” or “Highlander”) was incorporated under the laws of the Province of British
Columbia, Canada. The Company’s head office is located at 2500 – 100 King Street West, Toronto, Ontario, Canada, M5X
1A9. Its records office is located at 1200 - 750 West Pender Street, Vancouver, British Columbia, Canada, V6C 2T8. Its
main business activity is the acquisition, exploration and evaluation of mineral properties located in Peru. These condensed
consolidated interim financial statements of the Company as at and for the three and nine months ended June 30, 2025,
and 2024 comprise the Company and its subsidiaries. On May 13, 2025, the Company’s common shares commenced
trading on the Toronto Stock Exchange (“TSX”) under the symbol HSLV. Prior to this date, the Company’s shares were
listed on the Canadian Securities Exchange.
The Company has not yet determined whether its mineral property interests contain mineral reserves that are economically
viable. The Company's continued operations, and the underlying value and recoverability of the amounts shown for mineral
property interests, are dependent upon the existence of economically recoverable mineral reserves in the mineral properties
that the Company holds an interest in. The continued exploration and development of projects will depend on the Company
receiving future cash flows from its ability to obtain share capital financing.
These condensed consolidated interim financial statements are prepared on the basis that the Company will continue as a
going concern, which assumes that the Company will be able to continue in operation for the foreseeable future and will be
able to realize its assets and discharge its liabilities and commitments in the normal course of operations. As an exploration
stage company, the Company does not have traditional revenue sources, and has historically relied on share capital
financing, as well as property option or sale proceeds to fund its property acquisition, exploration and evaluation
expenditures, and operating expenses.
As at June 30, 2025, the Company had cash and cash equivalents of $24,281,664 (September 30, 2024 – $2,500,894). The
Company has financed its operations primarily through the issuance of common shares.
On March 11, 2025, the Company closed its previously announced bought deal private placement, pursuant to which the
Company sold 23,000,000 common shares of the Company at a price of $1.40 per common share for aggregate gross
proceeds of $32,200,000, which includes the full exercise of the underwriters’ option of 3,000,000 shares. The Company
intends to use the net proceeds of $30,036,728 from the private placement to fund the advancement of exploration activities
at the Company’s San Luis gold-silver project in Peru, as well as for working capital and general corporate purposes.
2. STATEMENT OF COMPLIANCE AND SUMMARY OF MATERIAL ACCOUNTING POLICIES
Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with International Financial
Accounting Standard 34 (“IAS 34”), Interim Financial Reporting, and do not include all of the information required for annual
financial statements prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International
Accounting Standards Board (“IASB”).
However, selected explanatory notes are included to explain events and transactions that are significant to an understanding
of the changes in the Company’s financial position and performance since the last annual financial statements.
These condensed consolidated interim financial statements were approved and authorized for issuance by the Board of
Directors on August 12, 2025.
Summary of material accounting policies
These condensed consolidated interim financial statements follow the same accounting policies and methods of application
as the Company's most recent annual financial statements, except as described below, and should be read in conjunction
with the annual audited consolidated financial statements

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