Skeena Resources Limited (TSX: SKE) (NYSE: SKE) announces that it has completed its previously announced offering of US$750 million aggregate principal amount of 8.500% Senior Secured Notes. The Notes will mature in 2031 and are non-callable for the first two years, with semi-annual interest payments. All dollar amounts expressed in this news release are in United States dollars.

Refinancing Strategy Overview

The offering of the Notes represents a comprehensive refinancing strategy, designed to optimize the Company’s capital structure by reducing its overall cost of capital and enhancing financial flexibility. The refinancing includes the cancellation and replacement of its undr awn Senior Secured Loan of US$350 million and Cost Overrun Facility under the Gold Stream (as defined below) of US$100 million (together, the “Facilities”) and the repurchase of approximately 66.67% of the US$200 million Gold Stream. The Company intends to use the gross proceeds from the sale of the Notes to:

• Repurchase 66.67% of the Gold Stream for US$184 million to materially increase Skeena’s exposure to gold prices and future production from Eskay Creek;
• Prefund interest on the Notes for 18 months with US$94 million deposited to an interest reserve account, equal to the first three semi-annual interest payments on the Notes; and
• Use the remaining capital of approximately US$470 million to support the remaining construction at Eskay Creek through a disbursement account, for general corporate pur poses, and for expenses associated with the issuance of the Notes.

Walter Coles, Executive Chairman of Skeena, commented: “Skeena has a track record of breaking new ground in the mining industry, and this transaction represents another important milestone. We are proud to be the first pre-revenue mining company in more than a decade to successfully complete a public high-yield notes offering. The strong support for this debt issuance from leading global investment firms, including KKR and Bank of America, underscores growing confidence in our strategy, our management team, and the robustness of the Eskay Creek project as we progress toward initial production in Q2 2027.”

Mr. Coles continued: “Our constructive outlook on gold prices further supports the decision to pursue the gold stream buyback as a disciplined and value accretive capital allocation strate gy. By reducing our streaming encumbrance earlier than originally contemplated, we simplify our capital structure, increase our exposure to rising gold prices, lower our expected cost per ounce of gold, materially improve future operating margins and enhance the overall economics and long-term value of the Eskay Creek project.”

Refinancing of Former Project Financing Package

In 2024, Skeena secured a project financing package consisting of the US$350 million Senior Secured Loan, the US$100 million Cost Overrun Facility, and the US$200 million Gold Stream (see news release dated June 25, 2024) (the “Gold Stream”) with Orion and certain of its affiliates . Under the original financing structure, Skeena retained the contractual flexibility to terminate both the Senior Secured Loan and the Cost Overrun Facility without penalty. As both Facilities remain undrawn, the Company will not incur cancellation fees for today’s cancellation. The transition to the Notes will lower the Company’s overall cost of capital and improve financial flexibility, reflecting the covenant-light nature of the Notes relative to the prior Facilities.

Buyback of Gold Stream

The Company completed drawing the full US$200 million Gold Stream in 2025 to support construction activities. Under the original terms, the stream holders were entitled to receive 10.55% of payable gold production at a price equal to 10% of the market price under the Gold Stream for the life of mine of the Eskay Creek project. Skeena also retained the option to repurchase up to 66.67% of the Gold Stream at an 18% imputed in ternal rate of return following the commencement of commercial production.

The Company has successfully negotiated the right to exercise this buyback option in advance of the originally contemplated timeline, today repurchasing 66.67% of the Gold Stream for USD$184 million. By completing this transaction, the Company materially improves future operating margins, increases its exposure to gold prices and future production and enhances overall project economics.

About Skeena

Skeena is a leading precious metals development company focused on advancing the Eskay Creek Gold-Silver Project in British Columbia’s Golden Triangle. With the Project fully permitted and under construction, the Company is progressing Eskay Creek towards initial production and cash flow in the second quarter of 2027. Once in operation, Eskay Creek is expected to be one of the world’s highest-grade and lowest-cost open-pi t precious metals mines, with significant silver by-product production that exceeds the output of many primary silver mines. Skeena is committed to responsible and sustainable mining in partnership with Indigenous communities, while maximizing the value of its mineral resources to generate long-term shareholder returns.