First Quarter 2026 – Download MD&A

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# First Quarter 2026 – Download MD&A

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# First Quarter 2026 – Download MD&A
TRX GOLD CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the three month period ended November 30, 2025
Management’s Discussion
and Analysis
November 30, 2025
The following Management’s Discussion and Analysis (“MD&A”) of the financial condition and results of
operations for TRX Gold Corporation (“TRX Gold” or the “Company”) should be read in conjunction with the
Company’s Unaudited Interim Condensed Consolidated Financial Statements for the three months ended
November 30, 2025, as well as the Company’s audited consolidated financial statements included in the
Company’s Annual Report on Form 40-F and Annual Information Form for the year ended August 31, 2025.
The financial statements and related notes of TRX Gold have been prepared in accordance with
International Financial Reporting Standards (“IFRS”). 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, on EDGAR at www.sec.gov/edgar, and on our website at www.TRXGold.com.
This MD&A reports our activities to date, January 14, 2026, unless otherwise indicated. References to the
1st quarter of 2026 or Q1 2026, and references to the 1st quarter of 2025 or Q1 2025 mean the three months
ended November 30, 2025, and November 30, 2024, respectively. References to fiscal 2026 and fiscal
2025 mean the twelve months ended August 31, 2026 and August 31, 2025, respectively. Unless otherwise
noted, all references to currency in this MD&A refer to US dollars. Unless clearly otherwise referenced to a
specific table, numbers referenced refer to numbered Endnotes on page 45.
Disclosure and Cautionary Statement Regarding Forward Looking Information
This MD&A contains certain forward-looking statements and forward-looking information, including without
limitation statements about TRX Gold’s future business, operations and production capabilities. All
statements, other than statements of historical fact, included herein are forward-looking statements and
forward-looking information that involve various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate, and actual results and future events could differ materially from
those anticipated in such statements. Although TRX Gold believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such statements are not guarantees of
future performance. The actual achievements of TRX Gold or other future events or conditions may differ
materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and
other factors. These risks, uncertainties and factors include general business, legal, economic, competitive,
political, regulatory and social uncertainties; actual results of exploration activities and economic
evaluations; fluctuations in currency exchange rates; changes in costs; future prices of gold and other
minerals; mining method, production profile and mine plan; delays in exploration, development and
construction activities; changes in government legislation and regulation; the ability to obtain financing on
acceptable terms and in a timely manner or at all; contests over title to properties; employee relations and
shortages of skilled personnel and contractors; and the speculative nature of, and the risks involved in, the
exploration, development and mining business.
Mr. Richard Boffey, BE Mining (Hons) F AusIMM, Chief Operating Officer of TRX Gold Corporation, is the
Company’s in-house Qualified Person under National Instrument 43-101 “Standards of Disclosure for
Mineral Projects” (“NI 43-101”) and has reviewed and assumes responsibility for the scientific and technical
content in this MD&A.
1
Management’s Discussion
and Analysis
November 30, 2025
The disclosure contained in this MD&A of a scientific or technical nature relating to the Company’s Buckreef
Project has been summarized or extracted from the technical report prepared in accordance with NI 43-
101 – Standards of Disclosure for Mineral Projects on the Buckreef Gold Project (“Buckreef Gold”) titled
Preliminary Economic Assessment and Updated Mineral Resource Estimate of the Buckreef Gold Mine
Project, Tanzania (“PEA”) with an effective date of April 15, 2025. The PEA was prepared in accordance
with NI 43-101 guidelines by P&E Mining Consultants Inc. (“P&E”). Input to this PEA was also provided by
D.E.N.M. Engineering Ltd. (“D.E.N.M.”). The information contained herein is subject to all of the
assumptions, qualifications and procedures set out in, and is qualified in its entirety by reference to the full
text of, the PEA and reference should be made to the full details of the PEA which has been filed with the
applicable regulatory authorities and is available on the Company’s profile at www.sedarplus.ca.
Certain information presented in this MD&A may constitute “forward-looking statements” and “forward
looking information” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
under securities legislation applicable in Canada, respectively. Such forward-looking statements and
information are based on numerous assumptions, and involve known and unknown risks, uncertainties, and
other factors, including risks inherent in mineral exploration and development, which may cause the actual
results, performance, or achievements of the Company to be materially different from any projected future
results, performance, or achievements expressed or implied by such forward-looking statements and
information. Investors are referred to our description of the risk factors affecting the Company, as contained
in our U.S. Securities and Exchange Commission (“SEC”) filings, including our Annual Report on Form 40-
F and Report of Foreign Private Issuer on Form 6-K, and our Annual Information Form also posted on
SEDAR+ and EDGAR, for more information concerning these risks, uncertainties, and other factors.
TRX Gold Corporation
TRX Gold is a high margin and growing gold company advancing the Buckreef Gold Project in Tanzania.
Buckreef Gold includes an established open pit operation and 2,000 tonnes per day process plant with
upside potential demonstrated in the May 2025 PEA. The PEA outlines average gold production of 62,000
oz per annum over 17.6 years at 3,000 tonnes per day of throughput capacity, and $1.9 billion pre-tax
NPV5% at average life of mine gold price of $4,000/oz. The Buckreef Gold Project hosts a Measured and
Indicated Mineral Resource of 10.8 million tonnes (“MT”) at 2.57 grams per tonne (“g/t”) gold containing
893,000 ounces (“oz”) of gold and an Inferred Mineral Resource of 9.1 MT at 2.47 g/t gold for 726,000 oz
of gold. The leadership team is focused on creating both near-term and long-term shareholder value by
increasing gold production to generate positive cash flow to fund the expansion as outlined in the PEA and
grow Mineral Resources through exploration. TRX Gold’s actions are led by the highest environmental,
social and corporate governance (“ESG”) standards, evidenced by the relationships and programs that the
Company has developed during its nearly two decades of presence in the Geita Region, Tanzania.
2
Management’s Discussion
and Analysis
November 30, 2025
Highlights – First Quarter 2026
The Company continued its positive trajectory by achieving record gold production during Q1 2026 as the
Company benefited from access to higher grade ore following successful completion of the scheduled
Stage 1 stripping campaign in fiscal 2025. The production rate improved in Q1 2026 as planned, and the
Company continued to demonstrate leverage to record gold spot prices during Q1 2026, recording higher
revenue, gross profit, adjusted net income, operating cash flow and EBITDA compared to the prior year
comparative period. As a result, the Company was able to continue to improve its working capital position
while continuing to invest in the future growth and development of Buckreef Gold. During fiscal 2025, the
Company filed a robust Preliminary Economic Assessment for Buckreef Gold, reporting average annual
production of approximately 62 thousand ounces of gold per year over a 17.6 year mine life, including an
underground expansion, and an NPV5% of $1.9 billion pre-tax ($1.2 billion after-tax) at $4,000 per ounce of
gold. During Q1 2026, the Company announced it would upgrade and expand processing capacity to a
larger processing facility than was initially contemplated in the PEA. The expanded plant is now expected
to produce greater than 62 thousand ounces of average annual gold as published in the PEA and will be
funded from cashflow from operations. The Company’s short-to-medium term priorities are to continue to
expand and upgrade processing capacity as outlined or above the PEA, continue advancing exploration in
key areas, and continue to strengthen liquidity. These positive results continue to demonstrate the growth
potential at Buckreef Gold and reflect successful execution of the Company’s sustainable business plan
where cash flow from operations funds value creating activities.
Key Q1 2026 Financial and Operational Highlights:
• During Q1 2026, the Company announced it has begun executing on a larger processing facility than
was initially contemplated in the PEA, consisting of a 3,000+ tpd processing circuit for sulphide material
as well as a 1,000 tpd processing circuit for oxide and transition material, and tailings retreatment, while
also being capable of processing sulphide material. The newly designed processing plant expansion is
now expected to produce average annual gold production in excess of the 62,000 ounces of gold
published in the PEA and is expected to be financed from internally generated cashflow over the next
18-24 months.
• During Q1 2026 the Company made progress on upgrades to the 2,000 tpd plant and the expansion to
a 3,000+ tpd processing plant, including finalization of procurement and accelerated manufacturing for
several key components, including the pre-leach thickener, upgraded agitators & interstage screens,
Aachen reactor, oxygen plant, ADR plant and new gold room, and apron feeder & belt magnet. The
plant upgrades are scheduled for completion in fiscal 2026 and are expected to boost plant reliability
and performance.
• During Q1 2026, Buckreef Gold poured a record 6,597 ounces of gold and sold 6,492 ounces of gold
at a record average realized price (net)1 of $3,860 per ounce, recognizing revenue of $25.1 million,
gross profit of $14.2 million, adjusted net income1 of $7.7 million, operating cash flow of $4.0 million
and EBITDA1 of $13.2 million, all of which reflect increases compared to the prior year comparative
period, demonstrating the Company’s leverage to record gold prices during Q1 2026.
• During Q1 2026, the Company continued to strengthen its working capital position through increased
production, organically generated cashflow, improved liquidity and an increase in stockpile inventory.
As a result, the Company’s current ratio has improved from approximately 1.3 at August 31, 2025 to
approximately 1.7 at November 30, 2025, after adjusting for non-cash liabilities.
Numerical annotations throughout the text of the remainder of this document refer to the endnotes found on page 45.
3
Management’s Discussion
and Analysis
November 30, 2025
• During Q1 2026, the Company continued to invest in mine development, mill optimizations, and run of
mine (ROM) stockpile inventory. The ROM stockpile has grown from approximately 15,162 ounces of
contained gold at August 31, 2025, to an estimated 19,698 ounces of contained gold

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