HSLV Q4 2025 Interim Financial Statements

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# HSLV Q4 2025 Interim FS FINAL

Source: https://highlandersilver.com/wp-content/uploads/2026/02/HSLV-Q4-2025-Interim-FS-FINAL.pdf
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# HSLV Q4 2025 Interim FS FINAL
Highlander Silver Corp.
Condensed Consolidated Interim Financial Statements
For the three and twelve months ended September 30, 2025 and 2024
(Unaudited)
Highlander Silver Corp.
Condensed Consolidated Interim Statements of Financial Position
(Unaudited – in Canadian Dollars)
September 30, 2024 October 1, 2023
Note September 30, 2025 (Restated – Note 4) (Restated – Note 4)
Assets
Current assets
Cash and cash equivalents $ 102,425,229 $ 2,500,894 $ 229,702
Receivables 8 93,968 275,000 –
Prepaids and other 220,672 25,536 14,268
Value-added tax receivable 185,609 15,357 8,904
102,925,478 2,816,787 252,874
Reclamation deposit 60,630 59,052 11,096
Property and equipment 282,093 94,523 –
Mineral property interests 5 11,943,472 10,758,885 44,013
Value-added tax receivable 248,803 89,730 –
Total assets $ 115,460,476 $ 13,818,977 $ 307,983
Liabilities and Equity
Current liabilities
Accounts payable and accrued liabilities 8 $ 1,826,740 $ 372,481 $ 234,986
Consideration payable 5 1,740,125 1,687,375 –
3,566,865 2,059,856 234,986
Non-current liabilities
Consideration payable 5 – 1,687,375 –
Reclamation provision 6 634,151 492,426 –
Total liabilities 4,201,016 4,239,657 234,986
Equity
Common shares 7 131,772,672 19,524,567 7,219,766
Reserves 7 3,338,213 1,724,026 1,385,293
Commitment to issue shares 7 – 46,319 46,319
Foreign currency reserve 505,676 (432,731) (63,899)
Deficit (24,357,101) (11,282,861) (8,514,482)
Total equity 111,259,460 9,579,320 72,997
Total liabilities and equity $ 115,460,476 $ 13,818,977 $ 307,983
Nature of operations and going concern (Note 1)
Commitments (Note 15)
Subsequent event (Note 3, 16)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Page 1
Highlander Silver Corp.
Condensed Consolidated Interim Statements of Net Loss and Comprehensive Loss
For the three and twelve months ended September 30, 2025 and 2024
(Unaudited – in Canadian Dollars, except share amounts)
Three months ended Twelve months ended
September 30, September 30,
2024 2024
(Restated (Restated
Note 2025 – Note 4) 2025 – Note 4)
Exploration expenses 11 $ 2,896,353 $ 590,241 $ 7,526,552 $ 1,432,595
General and administrative expenses 12 1,506,153 508,597 5,608,667 1,685,611
Loss from operations 4,402,506 1,098,838 13,135,219 3,118,206
Gain on disposal of equipment – (20) (137,294) (11,847)
Finance cost 5,447 8,237 237,243 8,237
Interest and other income (174,238) (57,131) (509,733) (152,663)
Foreign exchange loss 46,352 – 181,486 –
Write-off of mineral property interests – 62 – 36,722
Write-off of receivables 13 – 86,540 182,052 86,540
Net loss 4,280,067 1,136,526 13,088,973 3,085,195
Other comprehensive (income) loss
Items that may be reclassified to profit or loss:
Foreign currency translation (404,914) (587,755) (938,407) 368,832
Total comprehensive loss $ 3,875,153 $ 548,771 $ 12,150,566 $ 3,454,027
Net loss per share attributable to:
Shareholders of the Company
Basic and diluted $ 0.04 $ 0.01 $ 0.14 $ 0.05
Weighted average number of shares outstanding
Basic and diluted 105,733,266 81,031,833 94,834,084 67,071,265
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Page 2
Highlander Silver Corp.
Condensed Consolidated Interim Statements of Cash Flows
For the three and twelve months ended September 30, 2025 and 2024
(Unaudited – in Canadian Dollars)
Three months ended Twelve months ended
September 30, September 30,
2024 2024
(Restated (Restated
Note 2025 – Note 4) 2025 – Note 4)
Cash provided by (used in):
Operations
Net loss for the period $ (4,280,067) $ (1,136,526) $ (13,088,973) $ (3,085,195)
Adjustments for:
Bonus expense – 46,500 – 46,500
Depreciation 14,757 26,759 28,183 29,608
Finance cost 5,447 8,237 237,243 8,237
Foreign exchange 49,973 (115,042) (83,856) (119,928)
Gain on disposal of equipment – – (137,294) –
Interest income (173,626) (19,088) (460,702) (80,052)
Reclamation provision 48,767 – 79,979 –
Restructuring payment – 91,094 – 91,094
Share-based compensation 7 482,489 31,621 2,062,683 630,626
Write-off of mineral property interests – 62 – 36,722
Write-off of receivables – 86,540 182,052 86,540
Net changes in non-cash working capital items:
Receivables (39,232) (118,323) (1,020) (81,965)
Value-added tax receivable (212,887) (3,556) (329,325) (6,454)
Prepaid and other (75,131) 14,137 (195,136) (11,268)
Accounts payable and accrued liabilities 439,059 (28,686) 1,171,402 3,078
Reclamation provision settlement (4,634) – (5,569) –
(3,745,085) (1,116,271) (10,540,333) (2,452,457)
Financing
Proceeds from bought deal equity financing,
net of share issue costs paid 7 81,817,347 – 111,854,075 12,188,380
Finance costs paid – – (213,367) –
Proceeds from exercise of options 7 – – 86,600 –
Proceeds from exercise of warrants 7 16,455 – 110,205 3,750
81,833,802 – 111,837,513 12,192,130
Investing
Mineral property interest 5 – (253,785) (22,349) (36,722)
Milestone payment under acquisition
agreement with SSR Mining 5 – – (1,701,500) –
Interest income received 173,626 346 460,702 9,680
Property and equipment (74,347) (29,347) (187,403) (31,543)
Proceeds from disposal of equipment – 284 137,294 7,774
Acquisition of Reliant Ventures S.A.C. – – – (7,158,514)
Cash acquired on purchase of Reliant
Ventures S.A.C. – (57,561) – 109,676
99,279 (340,063) (1,313,256) (7,099,649)
Effect of exchange rate changes on cash and
cash equivalents (44,431) 557,202 (59,589) (368,832)
Increase (decrease) in cash and cash
equivalents 78,143,565 (899,132) 99,924,335 2,271,192
Cash and cash equivalents, beginning of period 24,281,664 3,400,026 2,500,894 229,702
Cash and cash equivalents, end of period $ 102,425,229 $ 2,500,894 $ 102,425,229 $ 2,500,894
Supplemental cash flow information (Note 9)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Page 3
Highlander Silver Corp.
Condensed Consolidated Interim Statements of Changes in Equity
For the twelve months ended September 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
Bought deal equity financing, net of share
issue costs 46,000,000 111,571,218 – – – – 111,571,218
Fair value reversal on expired stock options – – (14,733) – – 14,733 –
Shares issued on exercise of warrants and
stock options 1,359,067 630,568 (433,763) – – – 196,805
Share-based compensation – – 2,062,683 – – – 2,062,683
Reclassification of commitment to issue shares
to common shares – 46,319 – (46,319) – – –
Net loss and comprehensive loss – – – – 938,407 (13,088,973) (12,150,566)
Balance, September 30, 2025 128,580,687 $ 131,772,672 $ 3,338,213 $ – $ 505,676 $ (24,357,101) $ 111,259,460
Balance, October 1, 2023 (Restated) 30,460,475 $ 7,219,766 $ 1,385,293 $ 46,319 $ (63,899) $ (8,514,482) $ 72,997
Bonus shares issued 75,000 46,500 – – – – 46,500
Private placement, net of share issue costs 50,514,222 12,163,457 – – – 24,923 12,188,380
Shares issued – restructuring payment 146,923 91,094 – – – – 91,094
Fair value reversal on expired stock options – – (291,893) – – 291,893 –
Exercise of warrants 25,000 3,750 – – – – 3,750
Share-based compensation – – 630,626 – – – 630,626
Net loss and comprehensive loss – – – – (368,832) (3,085,195) (3,454,027)
Balance, September 30, 2024 81,221,620 $ 19,524,567 $ 1,724,026 $ 46,319 $ (432,731) $ (11,282,861) $ 9,579,320
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Page 4
Highlander Silver Corp.
Notes to the Condensed Consolidated Interim Financial Statements
For the three and twelve months ended September 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 twelve months ended September 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 September 30, 2025, the Company had cash and cash equivalents of $102,425,229 (September 30, 2024 –
$2,500,894). The Company has financed its operations primarily through the issuance of common shares.
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 November 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 of the Company for the year ended September 30, 2024.
Mineral property interests
Exploration and evaluation expenditures relate to costs incurred in the search for mineral resources, the determination of
technical feasibility and the assessment of commercial viab

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