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# MDA

Source: https://outcropsilver.com/site/assets/files/6336/2026_q2_ocg_financials_final.pdf
Fetched: 2026-09-12T07:07:44.853+00:00
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## Content

# MDA
OUTCROP SILVER & GOLD CORPORATION
Condensed Interim Consolidated Financial Statements
For the six months ended February 28, 2026 and 2025
(unaudited)
OUTCROP SILVER & GOLD CORPORATION
Condensed interim consolidated statements of financial position
(Unaudited - expressed in Canadian dollars)
As at Notes February 28, 2026 August 31, 2025
ASSETS
Current assets
Cash $ 22,577,626 $ 5,107,316
Marketable securities 5 5,041,733 2,384,895
Receivables 94,011 53,740
Advances and prepaid expenses 420,537 867,713
Assets held for sale 6 - 10,000
28,133,907 8,423,664
Non-current assets
Equipment 7 488,270 88,570
Investment in associate 6 10,000 -
Reclamation bond - 16,299
Mineral properties 8 9,857,537 9,844,317
10,355,807 9,949,186
Total assets $ 38,489,714 $ 18,372,850
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities 9 $ 1,629,507 $ 1,156,626
Total liabilities $ 1,626,507 $ 1,156,626
SHAREHOLDERS’ EQUITY
Share capital 10 $ 124,036,142 $ 96,728,072
Share subscriptions receivable 10 (59,400) -
Reserves 10 34,791,358 33,427,190
Accumulated other comprehensive loss (91,898) (39,309)
Deficit (121,815,995) (112,899,729)
Total shareholders’ equity 36,860,207 17,216,224
Total liabilities and shareholders’ equity $ 38,489,714 $ 18,372,850
Nature of operations and going concern 1
Subsequent events 15
Approved for issue by the Board of Directors on April 13, 2026.
On behalf of the Board of Directors:
“Ian Harris” “Kevin Nishi”
Ian Harris, Director Kevin Nishi, Director
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
OUTCROP SILVER & GOLD CORPORATION
Condensed interim consolidated statements of loss and comprehensive loss
(Unaudited - expressed in Canadian dollars)
Three months ended Six months ended
Note February 28, February 28, February 28, February 28,
2026 2025 2026 2025
Expenses
Exploration 8,11 $ 3,705,506 $ 2,114,972 $ 7,035,458 $ 4,340,334
Foreign exchange 370,892 66,693 713,741 28,349
General and administrative 11 1,075,234 943,274 1,962,910 1,499,682
Investor relations 229,100 148,799 741,714 418,899
Professional fees 11 258,205 101,138 339,392 183,221
Stock-based compensation 10,11 67,054 522,312 250,435 1,046,469
Wages and benefits 11 715,134 163,474 857,390 248,756
(6,421,125) (4,060,662) (11,901,040) (7,765,710)
Other income (expenses)
Interest income 140,238 32,713 263,282 33,885
Unrealized gain on marketable securities 5 1,108,519 - 2,721,492
1,248,757 32,713 2,984,774 33,885
Loss for the period (5,172,368) (4,027,949) (8,916,266) (7,731,825)
Foreign currency translation differences for
(62,629) 79,157 (52,589) 84,870
foreign operations
Comprehensive loss for the period $ (5,234,997) $ (3,948,792) $ (8,968,855) $ (7,646,955)
Basic and diluted loss per share $ (0.01) $ (0.01) $ (0.02) $ (0.02)
Weighed average number of common shares
472,801,746 339,297,743 455,316,747 329,970,709
outstanding – basic and diluted
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
OUTCROP SILVER & GOLD CORPORATION
Condensed interim consolidated statements of cash flows
(Unaudited - expressed in Canadian dollars)
Six months ended February 28, 2026 February 28, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period $ (8,916,266) $ (7,731,825)
Adjustments for items not involving cash:
Depreciation 13,536 14,362
Stock-based compensation 250,435 1,046,469
Interest expense - 24
Unrealized gain on marketable securities (2,721,492) -
Unrealized foreign exchange (43,931) (47,149)
(11,417,718) (6,718,119)
Net changes in non-cash working capital items:
Receivables (40,271) 1,797
Advances and prepaid expenses 447,176 (178,269)
Accounts payable and accrued liabilities 472,881 (367,539)
Net cash outflows from operating activities (10,537,932) (7,262,130)
CASH FLOWS FROM INVESTING ACTIVITIES
Exploration and evaluation assets - 230,228
Equipment acquisitions (413,236) (27,825)
Net cash inflows (outflows) from investing activities (413,236) 202,403
CASH FLOWS FROM FINANCING ACTIVITIES
Shares issued 30,222,486 9,969,644
Share issue costs (1,860,083) (258,481)
Repayment of lease liability - (1,732)
Net cash inflows from financing activities 28,362,403 9,709,431
Effect of foreign exchange on cash 59,075 26,465
Change in cash during the period 17,470,310 2,676,169
Cash, beginning of period 5,107,316 1,122,749
Cash, end of period $ 22,577,626 $ 3,798,918
Supplemental disclosure with respect to cash flows – Note 14
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
OUTCROP SILVER & GOLD CORPORATION
Condensed interim consolidated statements of shareholders’ equity
(Unaudited - expressed in Canadian dollars)
Accumulated
Share
Number of Share Stock-Based Warrant DSU Other
Subscription Deficit Total
Shares Capital Reserves Reserves Reserves Comprehensive
Receivable
Income (Loss)
Balance, August 31,
290,524,636 $ 78,313,834 $ - $13,317,985 17,374,359 $ 15,750 $ (53,327) $ (95,170,512) $ 13,798,089
2024
Common shares issued 47,996,823 8,999,644 - - 970,000 - - - 9,969,644
Common shares issued
3,074,499 678,265 - - - - - - 678,265
for acquisition
Share issue costs - (258,481) - - - - - - (258,481)
Transfer of fair value of
- 767,388 - - (767,388) - - - -
warrants exercised
Transfer of fair value of
- 398,313 - (398,313) - - - - -
options exercised
Stock-based
- - - 1,046,469 - - - - 1,046,469
compensation
Foreign currency
- - - - - - 84,870 - 84,870
translation adjustment
Loss for the period - - - - - - - (7,731,825) (7,731,825)
Balance, February 28,
341,595,958 $ 88,898,963 $ - $13,966,141 $17,576,971 $ 15,750 $ 31,543 $ (102,902,337) $ 17,587,031
2025
Balance, August 31,
385,233,529 $ 96,728,072 $ - $14,804,601 $18,606,839 $ 15,750 $ (39,309) $ (112,899,729) $ 17,216,224
2025
Common shares issued 98,364,680 26,637,886 (59,400) - 3,644,000 - - - 30,222,486
Share issue costs - (1,860,083) - - - - - - (1,860,083)
Transfer of fair value of
- 1,600,739 - - (1,600,739) - - - -
warrants exercised
Transfer of fair value of
- 929,528 - (929,528) - - - - -
options exercised
Stock-based
- - - 250,435 - - - - 250,435
compensation
Foreign currency
- - - - - - (52,589) - (52,589)
translation adjustment
Loss for the period - - - - - - - (8,916,266) (8,916,266)
Balance, February 28,
483,598,209 $ 124,036,142 $ (59,400) $14,125,508 $20,650,100 $ 15,750 $ (91,898) $ (121,815,995) $ 36,860,207
2026
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
OUTCROP SILVER & GOLD CORPORATION
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended February 28, 2026 and 2025
(Unaudited - expressed in Canadian dollars)
1. NATURE OF OPERATIONS AND GOING CONCERN
Outcrop Gold & Silver Corporation (“Outcrop” or the “Company”) is a publicly traded company
incorporated under the laws of the Province of British Columbia, Canada. The Company’s shares are
listed for trading on the Toronto Stock Exchange (“TSX”) under the symbol “OCG”. The Company
transitioned from the Toronto Venture Exchange (“TSX-V”) on November 18, 2025. The Company’s
corporate registered and records office is located at #905 – 1111 West Hastings Street, Vancouver, British
Columbia, V6E 2J3. The Company is engaged in the identification, acquisition, exploration, and
development of mineral properties in Colombia and USA. The Company has not placed any of its mineral
properties into production and is therefore considered to be in the exploration stage. These condensed
interim consolidated financial statements of the Company for the six months ended February 28, 2026,
are comprised of the results of the Company and its subsidiaries.
These condensed interim consolidated financial statements are prepared on a going concern basis, which
assumes that the Company will be able to realize its assets and discharge its liabilities in the normal
course of business in the foreseeable future. Management estimates its current working capital will be
sufficient to fund its current level of activities for the next twelve months. The Company’s ability to
continue on a going concern basis beyond the next twelve months depends on its ability to successfully
raise additional financing for the substantial capital expenditures required to achieve planned principal
operations. These condensed interim consolidated financial statements do not reflect adjustments that
would be necessary if the going concern assumption were not appropriate, which could be material.
2. BASIS OF PRESENTATION
Statement of compliance
These condensed interim consolidated financial statements have been prepared in accordance with
International Accounting Standards (“IAS”) 34, Interim Financial Reporting using the Principles of IFRS
Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
These condensed interim consolidated financial statements do not include all the information required
for full annual financial statements and, accordingly, should be read in conjunction with the Company’s
annual consolidated financial statements for the year ended August 31, 2025.
Basis of measurement
These condensed interim consolidated financial statements have been prepared using the historical
cost basis, except for certain financial instruments that are measured at fair value, using the accrual
basis of accounting, except for cash flow information.
Functional and presentation currency
The presentation currency of the Company is the Canadian dollar.
Items included in the financial statements of each entity in the Company are measured using the
currency of the primary economic environment in which the entity operates (the “functional currency”),
which has been determined for each entity within the Company using an analysis of the consideration
factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates. The functional currency of
Outcrop, the parent company, is the Canadian dollar; that of the Company’s US subsidiaries, Zaya
Resources Ltd., and Lustrum Exploration Corp., are the United States dollar. The functional
6
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OUTCROP SILVER & GOLD CORPORATION
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended February 28, 2026 and 2025
(Unaudited - expressed in Canadian dollars)
2. BASIS OF PRESENTATION (continued)
currency of all the Company’s Canadian subsidiaries is the Canadian dollar, and that of all the Colombian
branch operations and Colombian simplified share companies is also the Canadian dollar.
Use of estimates and judgments
The preparation of the consolidated financial statements in conformity with IFRS requires management
to make estimates, judgments and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these
estimates.
In preparing these condensed interim consolidated financial statements, significant judgments made by
management in applying the Company’s accounting policies and key sources of estimation uncertainty
were the same as those that applied to the consolidated financial statements for the year ended August
31, 2025.
Level of control or influence over companies
The accounting for investments in other companies can vary depending on the degree of control and
influence over those other companies. Management is required to assess at each reporting date the
Company’s control and influence over these other companies. Management has used its judgment to
determine which companies are controlled and require consolidation and those which are significantly
influenced and require equity accounting.
3. MATE

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