MDA

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# MDA

Source: https://westredlakegold.com/wp-content/uploads/2026/04/WRLG-MDA-YE-2025-FINAL.pdf
Fetched: 2026-09-09T11:42:41.479+00:00
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## Content

# MDA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the 12 months ended December 31, 2025 and 13 months ended December 31, 2024
(Expressed in thousands of Canadian dollars, unless otherwise stated)
West Red Lake Gold Mines Ltd.
Management’s Discussion and Analysis for the 12 Months Ended December 31, 2025
(expressed in thousands of Canadian dollars, except as noted)
This Management’s Discussion and Analysis (“MD&A”) was prepared as of April 21, 2026 and provides an analysis
of the financial and operating results of West Red Lake Gold Mines Ltd. (“West Red Lake”, “WRLG” or “the
Company”) for the 12 months ended December 31, 2025. Additional information regarding West Red Lake, as well
as other information filed with the Canadian regulatory authorities under the Company’s profile on the System for
Electronic Document Analysis and Retrieval Plus (“SEDAR+”) at www.sedarplus.ca. All monetary amounts are in
Canadian dollars unless otherwise specified.
The following discussion and analysis of the financial condition and results of operations of West Red Lake should
be read in conjunction with the Company’s audited consolidated financial statements for the 12 months ended
December 31, 2025 as well as the audited consolidated financial statements for the 13 months ended December
31, 2024, and the related notes (the “Annual Financial Statements”), which have been prepared in accordance with
IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”) (the “IFRS”).
This MD&A should also be read in conjunction with the Company’s most recently filed annual information form
(“AIF”). Other than the information set out under the heading ‘Risk Factors’ in the AIF, which is incorporated by
reference herein, the AIF does not constitute part of this MD&A.
The Audit Committee of the Company’s Board of Directors (the “Board”) reviews and recommends for approval to
the Board, who then review and approve, the Annual Financial Statements and this MD&A. This MD&A contains
forward-looking information. Please see the section, “Cautionary Note Regarding Forward-Looking Information” for
a discussion of the risks, uncertainties and assumptions used to develop the Company’s forward-looking
information.
1
West Red Lake Gold Mines Ltd.
Management’s Discussion and Analysis for the 12 Months Ended December 31, 2025
(expressed in thousands of Canadian dollars, except as noted)
CAUTIONARY NOTE REGARDING FORWARD – LOOKING INFORMATION
This MD&A contains or incorporates by reference “forward-looking statements” (also referred to as “forward-looking
information”) within the meaning of applicable Canadian securities legislation. Forward-looking statements are
provided for the purpose of providing information about management's current expectations and plans and allowing
investors and others to get a better understanding of the Company’s operating environment. All statements, other
than statements of historical fact, are forward-looking statements. In this MD&A, forward-looking statements
include, but are not limited to statements regarding the Company’s future results and are necessarily based upon
a number of estimates and assumptions that, while considered reasonable by the Company at this time, are
inherently subject to significant business, economic and competitive uncertainties and contingencies that may
cause the Company's actual financial results, performance, or achievements to be materially different from those
expressed or implied herein. Some of the material factors or assumptions used to develop forward-looking
statements include, without limitation, the uncertainties associated with: regulatory and permitting considerations,
financing of the Company’s acquisitions and other activities, exploration, development and operation of mining
properties and the overall impact of misjudgments made in good faith in the course of preparing forward-looking
information. Forward-looking statements involve risks, uncertainties, assumptions, and other factors including
those set out below, that may never materialize, prove incorrect or materialize other than as currently contemplated
which could cause the Company’s results to differ materially from those expressed or implied by such forward-
looking statements. Any statements that express or involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified
by words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates",
"assumes", "intends", "strategy", "goals", "objectives", "potential", "possible" or variations thereof or stating that
certain actions, events, conditions or results "may", "could", "would", "should", "might" or "will" be taken, occur or
be achieved, or the negative of any of these terms and similar expressions) are not statements of fact and may be
forward-looking statements. Such factors include, among others: risks related to: exploration and development
activities at the Company’s projects, and factors relating to whether or not mineralization extraction will be
commercially viable at the Rowan Property; risks related to the ongoing commercial production at the Madsen
Mine;; risks related to mining operations and the hazards and risks normally encountered in the exploration,
development and production of minerals, such as unusual and unexpected geological formations, rock falls, seismic
activity, flooding and other conditions involved in the extraction and removal of materials; uncertainties regarding
regulatory matters, including obtaining permits and complying with laws and regulations governing exploration,
development, production, taxes, labour standards, occupational health, waste disposal, toxic substances, land use,
environmental protection, site safety and other matters, and the potential for existing laws and regulations to be
amended or more stringently implemented by the relevant authorities; uncertainties regarding estimating mineral
resources, which estimates may require revision (either up or down) based on actual production experience; risks
relating to fluctuating metals prices and the ability to operate the Company’s projects at a profit in the event of
declining metals prices and the need to reassess feasibility of a particular project that estimated mineral resources
will be recovered or that they will be recovered at the rates estimated; risks related to title to the Company’s
properties, including the risk that the Company’s title may be challenged or impugned by third parties; the ability of
the Company to access necessary resources, including mining equipment and crews, on a timely basis and at
reasonable cost; risks related to high inflation, interest rate increases and price volatility; geopolitical risks and
tariffs; competition within the mining industry for the discovery and acquisition of properties from other mining
companies; risks related to the stage of the Company’s development, including risks relating to limited financial
resources, limited availability of additional financing and potential dilution to existing shareholders; reliance on its
management and key personnel; inability to obtain adequate or any insurance; currently unprofitable operations;
risks regarding the ability of the Company and its management to manage growth; potential conflicts of interest;
risks related to the restrictive covenants contained in the Nebari Credit Facility and the ability for the Company to
obtain additional financing; risks relating to being able to service the Company’s current debt obligations under the
gold-linked notes ( the “Gold-Linked Notes”) and Nebari Credit Facility; and all those risks identified in the section
entitled “Risk Factors” in this MD&A and other risk factors identified in the AIF.
The foregoing list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements.
Forward-looking statements are statements about the future and are inherently uncertain, and the Company’s actual
achievements or other future events or conditions may differ materially from those reflected in the forward-looking
2
West Red Lake Gold Mines Ltd.
Management’s Discussion and Analysis for the 12 Months Ended December 31, 2025
(expressed in thousands of Canadian dollars, except as noted)
statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to
in this MD&A.
Investors are cautioned not to put undue reliance on forward-looking statements, and investors should not infer that
there has been no change in the Company’s affairs since the date of this MD&A that would warrant any modification
of any forward-looking statement made in this document, other documents periodically filed with or furnished to the
relevant securities regulators or documents presented on the Company’s website. All subsequent written and oral
forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in
their entirety by this notice. The Company disclaims any intent or obligation to update publicly or otherwise revise
any forward-looking statements or the foregoing list of assumptions or factors, whether as a result of new
information, future events or otherwise, subject to the Company’s disclosure obligations under applicable Canadian
securities regulations. Investors are urged to read the Company’s filings with Canadian securities regulatory
agencies, which can be viewed online at www.sedarplus.ca.
3
West Red Lake Gold Mines Ltd.
Management’s Discussion and Analysis for the 12 Months Ended December 31, 2025
(expressed in thousands of Canadian dollars, except as noted)
BUSINESS OVERVIEW
West Red Lake is a company that declared it achieved commercial production effective January 1, 2026 and is
focused on safely maximizing production at its flagship Madsen Gold Mine project (the “Madsen Property” or
“Madsen Mine”) and the associated 47 sq-kilometer (“km2”) highly prospective land package in the Red Lake Gold
District of Ontario. West Red Lake also holds the wholly owned Rowan Property in Red Lake, with a property
position covering 31 km2 including three past producing gold mines – Rowan, Mount Jamie, and Red Summit.
The Company was incorporated on March 4, 1993 under the Business Corporations Act (Ontario) as New Dolly
Varden Minerals Inc., and continued under the Business Corporations Act (British Columbia) on November 27, 2017
as DLV Resources Ltd. The Company changed its name to West Red Lake Gold Mines Ltd. on December 29,
2022, and is listed on the TSX Venture Exchange (“TSXV”) under the symbol ‘WRLG’. The Company’s registered
and records office is 25th Floor, 700 West Georgia Street, Vancouver, British Columbia, V7Y 1B3. The Company
is a reporting issuer in each of the provinces and territories of Canada.
HIGHLIGHTS
Operational
Madsen Mine
On January 7, 2025, the Company published the results of the Madsen Mine Pre-Feasibility Study (“PFS”). The
PFS validated the rationale to restart Madsen Mine by generating strong economic results, including almost $70
million in average annual free cash flow over 6 full production years.
On May 7, 2025, the Company announced the successful results of its completed bulk sample program at Madsen
Mine, subsequent to which the Board approved the official restart of the Madsen Mine on May 22, 2025.
In 2025, the Madsen Mine poured 20,113 ounces of gold. This gold was sold at an average price of $5,170 per oz.
for total gold sales revenues of $103 million. The Company generated $45 million of income from mining operations
and $23 million of income from overall operations.
O

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