Dec 31, 2025 – Year End Financial Statements

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# Dec 31, 2025 – Year End Financial Statements

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# Dec 31, 2025 – Year End Financial Statements
SILVERCO MINING LTD.
(formerly Quetzal Copper Corp.)
Consolidated Financial Statements
For the year ended December 31, 2025 and for the period from April 18, 2024 to December 31, 2024
(Expressed in Canadian dollars)
Independent Auditor’s Report
To the Shareholders of:
SILVERCO MINING LTD.
(formerly Quetzal Copper Corp.)
Opinion
We have audited the consolidated financial statements of Silverco Mining Ltd. (formerly Quetzal
Copper Corp.) and its subsidiaries (collectively “the Company”), which comprise the
consolidated statements of financial position as at December 31, 2025 and 2024 and the
consolidated statements of loss and comprehensive loss, changes in shareholders’ equity and
cash flows for the year ended December 31, 2025 and for the period from the incorporation date
on April 18, 2024 to December 31, 2024, and notes to the consolidated financial statements,
including a summary of material accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the financial position of the Company as at December 31, 2025 and 2024, and its
financial performance and its cash flows for the year ended December 31, 2025 and for the
period from incorporation date on April 18, 2024 to December 31, 2024, in accordance with
International Financial Reporting Standards (“IFRS Accounting Standards”) as issued by the
International Accounting Standards Board (“IASB”).
Basis for Opinion
We conducted our audits in accordance with Canadian generally accepted auditing standards.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Consolidated Financial Statements section of our report. We are independent
of the Company in accordance with the ethical requirements that are relevant to our audit of the
consolidated financial statements in Canada, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the consolidated financial statements for the year ended December 31, 2025.
These matters were addressed in the context of our audit of the consolidated financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
Assessment of Reclamation Provision
We draw attention to Notes 3(l), 4(j) and 12 to the consolidated financial statements. The
Company recorded a reclamation provision of $2,884,693 for environmental rehabilitation or
reclamation resulting from mining activities. The provision is determined using expectations of
future activities and the amount and timing of associated cash flows discounted to their present
value.
We identified the assessment of reclamation provision as a key audit matter. This matter
represented an area of significant risk of material misstatement requiring specialized skills and
knowledge to evaluate the Company’s selection of future activities and the amount and timing
of the associated cash flows and the discount rate used to determine the present value of the
reclamation provision.
Audit Response
The following are the primary procedures we performed to address this key audit matter:
 We assessed the professional competence and experience of the Company's experts who produced the mine
closure plans and estimated the amount of expected cash flows.
 Due to the specialized skills and knowledge used by the Company to select future activities and the amount
and timing of associated cash flows, we engaged our own professionals with specialized skills and knowledge
in mine closure and environmental remediation, who assisted in evaluating a selection of cash flows by
comparing to recent third-party quotes and relevant supporting evidence.
 We held discussions with management’s experts to understand and challenge the adequacy and
appropriateness of assumptions utilized in the cost estimates of the various rehabilitation activities.
 We independently evaluated the discount rate and inflation rate applied by management by comparing them
to observable market data and third-party sources.
Other Information
Management is responsible for the other information. The other information comprises Management’s Discussion and
Analysis. Our opinion on the consolidated financial statements does not cover the other information and will not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
We obtained Management's Discussion and Analysis prior to the date of this auditor’s report. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to
enable the preparation of consolidated financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with Canadian generally accepted auditing standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
The accompanying notes are an integral part of these consolidated financial statements.
3
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Mike Kao.
WDM
Chartered Professional Accountants
Vancouver, B.C.
April 24, 2026
The accompanying notes are an integral part of these consolidated financial statements.
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SILVERCO MINING LTD. (formerly Quetzal Copper Corp.)
Consolidated Statements of Financial Position
(Expressed in Canadian dollars)
December 31, December 31,
Note 2025 2024
$ $
ASSETS
Current
Cash 1,124,955 2,002,050
Value added taxes and GST receivable 2,584,051 1,014,680
Prepaid expenses and deposits 245,223 52,195
Loan receivable 7 - 1,250,000
Total Current Assets 3,954,229 4,318,925
Property and equipment 8 369,333 325,061
Exploration and evaluation asset 9 7,555,692 4,393,563
Total assets 11,879,254 9,037,549
LIABILITIES
Current
Acc

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