MD&A

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# MD&A

Source: https://troilusmining.com/_resources/financials/MDA-Q2-2026.pdf?v=091207
Fetched: 2026-09-12T07:12:13.488+00:00
Source artifact: 789cf3d5-212d-4497-a1dd-9f53228595d8
Normalizer input: text

## Content

# MD&A
TROILUS MINING CORP. (formerly Troilus Gold Corp.)
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the three and six months ended January 31, 2026, and 2025
1
Management’s Discussion and Analysis
For the three and six months ended January 31, 2026 and 2025
The following Management’s Discussion and Analysis (“MD&A”) relates to the financial condition and
results of operations of Troilus Mining Corp. (formerly Troilus Gold Corp.) (“we”, “our”, “us”, “Troilus”,
“Troilus Mining” or the “Company”) for the three and six months ended January 31, 2026 and should be
read in conjunction with the Company’s condensed interim financial statements for the three and six
months ended January 31, 2026, as well as the Company’s audited annual consolidated financial
statements and MD&A for the year ended July 31, 2025. The financial statements and related notes of
Troilus have been prepared in accordance with International Financial Reporting Standards (“IFRS”).
Certain Non-IFRS measures are discussed in this MD&A and are clearly disclosed as such. Additional
information, including our press releases, has been filed electronically on SEDAR+ and is available online
under the Company’s profile at www.sedarplus.ca and on our website at www.troilusgold.com.
This MD&A is intended to supplement and complement the Company’s unaudited condensed interim
financial statements as at and for the three and six months ended January 31, 2026 (“Financial
Statements”) and the notes thereto, which were prepared in accordance with IFRS Accounting Standards
(“IFRS”). This MD&A reports our activities through March 5, 2026 unless otherwise indicated. References
to the 1st and 2nd quarter of 2026 or Q1 and Q2 -2026, and the 1st and 2nd quarter of 2025 or Q1 and Q2-
2025 mean the three months ended October 31, 2025 and January 31, 2026 and October 31, 2024 and
January 31, 2025 respectively. Unless otherwise noted, all references to currency in this MD&A refer to
Canadian dollars.
BACKGOUND:
The Troilus Mining property is located northeast of the Val-d’Or mining district, within the Frotêt-Evans
Greenstone Belt in Quebec, Canada. The Company holds a strategic land position of 435 km2 and includes
the former Troilus mine.
From 1997 to 2010 Inmet Mining Company ("Inmet") operated the Troilus mine, which produced in excess
of 2,000,000 ounces of gold and 70,000 tonnes of copper. Inmet commissioned the Troilus mill in 1996
and achieved commercial production in April 1997 at a rate of 10,000 tonnes per day with recoveries of
83.3% gold and 89.1% copper and a concentrate grade of 19% copper, eventually reaching a production
milestone of 20,000 tonnes per day in 2006. First Quantum Minerals Ltd. (“First Quantum”) acquired the
Troilus Mining property through its acquisition of Inmet in 2013.
The Troilus Mining property was acquired in various transactions. The first consisted of the acquisition
from First Quantum of 81 mineral claims and one surveyed mining lease that collectively covered
approximately 4,700 hectares and included the former Troilus Mine. The second transaction consisted of
the acquisition from Emgold Mining Corporation (“Emgold”) of 209 mineral claims that covers
approximately 11,300 hectares. The next transaction consisted of the acquisition of 3 mining claims from
O3 Mining Inc. (“O3”) that fall within the boundaries of the northern block of the Troilus Mining property
and cover approximately 160 hectares. The Company had also acquired 627 claims from O3 representing
approximately 33,000 hectares.
2
The Company had acquired 91 claims from Globex Mining Enterprises Inc. (“Globex”) and 21 claims from
Canadian Mining House (“CMH”). In addition, the Company had staked 956 claims covering an area of
approximately 52,000 hectares.
In May 2021, the Company acquired 100% of the issued and outstanding shares of UrbanGold Minerals
Inc. (“UrbanGold”), which added over 35,000 hectares to the Company’s current land package. Included
in the land package acquired are claims subject to a 50-50 Joint Venture. In October 2021, the Company
effected a statutory amalgamation with UrbanGold.
In November 2022, the Company completed the sale of 1,824 claims representing an area of
approximately 985 square kilometres to a subsidiary of Sayona Mining Limited (“Sayona”). In March 2023,
an additional 3 claims were sold to a publicly traded company. In August 2024, the Company closed an
agreement to sell 105 non-core mining claims to Comet Lithium Corporation. The transferred claims do
not include any of the claims on which the Company has a current National Instrument 43-101 gold and
copper resource estimate, nor do they include ground where the majority of recent exploration activities
were undertaken by the Company.
The Company’s head office is in Montreal, Quebec, while the Company’s registered office is in Toronto,
Ontario. The Company also has a local office in the city of Chibougamau, Quebec and an information
center in the Cree Nation town of Mistissini.
ACCOMPLISHMENTS AND OUTLOOK
• In August 2025, the Company signed a Memorandum of Agreement with Aurubis AG for the long-
term offtake of copper-gold concentrate from the Troilus Project, this milestone reinforces
Troilus’ role as a future North American supplier to European markets and supports secure critical
mineral supply chains.
• Basic engineering led by BBA Inc. has been completed and transitioned into a bridging period for
engineering work in advance of detailed engineering work which is expected to commence in the
first half of calendar 2026.
• In October 2025, Troilus was awarded the “Entrepreneur of the Year” distinction by the Québec
Mineral Exploration Association, the recognition underscores the Company’s growing strategic
importance within Québec and Canada’s critical minerals sector.
• In November 2025, the Company successfully completed a bought deal public offering, including
the full exercise of the over-allotment option, for aggregate gross proceeds of approximately
$172.5 million.
• In November 2025, Troilus increased its previously announced debt financing mandate from
US$700 million to up to US$1.0 billion.
• In November 2025, repaid amounts previously drawn, being US$15 million plus interest ($20.4
million), from its US$35 million (approximately $48.5 million) loan facility from Auramet
International Inc. (“Auramet”).
• In December 2025, the Company completed its name change from Troilus Gold Corp. to Troilus
Mining Corp.
3
The Company is currently:
• In the review process with both the Federal and Provincial governments after submitting its
Environment and Social Impact Assessment (“ESIA”).
• Continuing community engagement and consultation, particularly with the Cree Nation of
Mistissini and Cree Nation Government to ensure our stakeholders voices and knowledge are
included in our decision making and planning as we continue to move forward.
• Working through a due diligence process with the export credit agencies and potential lenders as
part of the project financing process. The Company continues to work with Auramet as Financial
Advisor to assist in financing the Troilus Project.
Subsequent to the end of the quarter:
• In February 2026, Troilus announced the appointment of Marty Rendall as Chief Financial Officer,
effective March 1, 2026.
• In February 2026, the Company completed an option agreement with Delta Resources Limited
(“Delta”), under which Troilus may earn a 100% interest in the Delta-2 mineral claims located near
Chibougamau, Québec. Refer to Exploration activities for details.
EXPLORATION ACTIVITIES
Drilling Programs
In October 2023, the Company released an updated mineral resource estimate, which was effective
October 2, 2023 (see Current Mineral Resource Estimate). Total indicated mineral resource was 11.21
million ounces AuEq (508.3 Mt with an average grade of 0.69 g/t AuEq) and total inferred mineral resource
was 1.8 million ounces AuEq (80.5 Mt with an average grade of 0.69 g/t AuEq). Over 99% of the mineral
4
resources in the Indicated category were classified as amenable to “Open Pit” from zones Z87, J, X22 and
Southwest, which formed the basis of the Feasibility Study released in May 2024 (please see “Feasibility
Study” later in this report).
The Feasibility Study included the Company inaugural Mineral Reserve estimate totaling Probable
reserves of 380 million tonnes, grading 0.59g/t AuEq (0.49 g/t Au, 0.058 % Cu and 1.0 g/t Ag) and
containing 7.26 million ounces of gold equivalent (6.02 Moz Au, 484 Mlb Cu and 12.15 Moz Ag), reflecting
the successful conversion of Mineral Resources (see Current Mineral Reserve Estimate).
A new gold zone named the West Rim Zone located within 200 metres west of Zones 87, J and X22, was
identified during the 2024 drill program. The West Rim target is an exhalative stratigraphic horizon hosted
within felsic to intermediate metavolcanic rocks along the north-west margin of the Troilus intrusion. This
prospective sequence can be traced for more than 4 km from the hanging wall of the J Zone, continuing
through the West Rim toward the Southwest hanging wall. The eastern boundary of the Troilus intrusion
has been extensively explored, and reserves defined within the Z87 and SW Pits align along this eastern
boundary. The western boundary of the diorite (West Rim) has been left un-explored and remains open
to further drilling. The Company completed approximately 1,900 metres of drilling at the West Rim target
with positive initial results (see press release dated September 3, 2024 on SEDAR+).
The 2025 exploration program commenced in January 2025 and focused on better defining higher grade
mineralization and enhancing confidence in the block model within the Southwest Zone. Results received
demonstrated strong continuity of higher-grade mineralization and reinforce the potential to optimize
and de-risk the Southwest Zone Mineral Resource and Reserve estimates. Drilling in the first half of
calendar 2025 targeted high-grade structures within the Phase 1 Southwest Reserve Pit, 1,440 metres
were allocated to target near-site geophysical anomalies in the footwall to the Southwest zone, which led
to the discovery of the Bear Lake mineralized trend. Planning is underway for 2026 with several
opportunities remaining both at site and regionally.
The Company closed an option agreement with Delta, under which Troilus may earn a 100% interest in
the Delta-2 mineral claims located near Chibougamau, Québec. The agreement includes:
• Up to $8.25 million in staged cash and/or share payments to Delta over a period to December 15,
2028
• Initial payment of C$1.0 million as at closing ($500,000 in cash and $500,000 in shares paid in
February 2026)
• A 1.0% Net Smelter Return (NSR) royalty retained by Delta on the Delta-2 Claims, half of which
may be repurchased for $0.5 million if and when the option is exercised
• Troilus will act as operator during the option period, funding all exploration and claim
maintenance expenditures
Regional Exploration Program
In February 2025, the Company initiated 2,100 line-kilometres of airborne VTEM surveys covering
extensions of the Troilus mine trend and the Pallador target claim blocks to refine exploration models.
The results of this survey will be integrated with existing datasets to better define exploration targets.
And an Induced Polarization (“IP”) survey was also initiated over high-priority soil anomalies to further
delineate and prioritize drill targets. During the summer of 2025, regional exploration included the
collection of approximately 2,900 soil samples to infill key data gaps in existing geochemical surveys to
5
enhance target generation as well as prospective and detailed geological mapping across multiple targets
with the Company’s land package.
In Oct

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]