Wesdome Gold Mines Ltd. (TSX: WDO) (OTCQX: WDOFF) announced its financial results for the three and six months ended June 30, 2025. Preliminary operating results for Q2 2025 were disclosed in the Company’s press release dated July 14, 2025.

Highlights

• Improving Safety Performance: Total Classified Incident Frequency Rate was 0.00 in Q2 2025 and 0.19 for H1 2025, a significant improvement from the 2024 average of 1.34.
• Production and costs: Consolidated gold production was 42,781 ounces; a 3% decrease compared to Q2 2024. Cost of sales per ounce sold decreased by 1% to US$932, while all-in sustaining costs (“AISC”) per ounce sold¹ increased 6% to US$1,528. The average realized price of gold sold in Q2 2025 was US$3,279 per ounce.
• Expanding margins: Gross profit increased by 146% year-over-year to $132.2 million and cash margin¹ grew by 96% to $149.4 million.
• Record quarterly net income: Net income increased to $82.7 million, or $0.55 earnings per share, a nearly threefold increase from Q2 2024.
• Record quarterly EBITDA¹: EBITDA¹ increased by 104% to $138.4 million relative to the comparative quarter in 2024.
• Record net cash from operating activities and free cash flow¹: Net cash from operating activities was $100.9 million, or $0.67 per share³, while free cash flow¹ was $52.9 million, or $0.35 per share.
• Record liquidity: As at June 30, 2025, liquidity stood at $530.0 million, including $187.6 million in cash and US$250.0 million of undrawn full capacity available under its recently upsized revolving credit facility, compared to liquidity of $273.1 million (including $123.1 million in cash) as at December 31, 2024.
• Amended and Restated Credit Agreement: On June 19, 2025, the Company amended and restated its credit agreement, extending the maturity of its secured revolving credit facility by three years to June 19, 2028, and upsizing it to US$250 million, with an option to increase the available credit by US$50 million through an accordion feature, for total availability of up to US$300 million.
• Completed acquisition of Angus Gold: The strategic addition of Angus Gold has quadrupled Eagle River’s land package. In total, exploration spending will increase by about $5 million in 2025 due to Angus.

Anthea Bath, President and Chief Executive Officer, commented: “Eagle River delivered a strong second quarter, despite a planned 18-day mill maintenance shutdown. Ongoing improvements in development and dilution control practices are continuing to result in stronger grades, while growing surface stockpiles are contributing to more consistent mill throughput.

“At Kiena, production slightly exceeded first-quarter levels, reflecting continuing equipment constraints and consequently limited access to stopes, as well as underperformance in one high-grade stope due to limited delineation. To improve reliability and production flexibility, efforts remain focused on developing additional mining horizons, with the completion of the second and third mining areas in the Presqu’île Zone and level 136 in Kiena Deep targeted before year-end. In addition, the team is actively resourcing open positions and building operational redundancy. Key initiatives include expanding the maintenance team and workshop infrastructure, introducing additional shifts, and improving short-interval control practices and spare parts management.

“Given performance to date and the expectation of stronger results in the second half of the year across our operations, we have updated our full-year outlook to reflect performance to date at both assets. At Eagle River, we are raising the upper end of our production guidance and lowering cost expectations. At Kiena, while the team is actively implementing measures to support second-half production and we continue to see improvements in mining execution, we have prudently updated our targets for production and unit costs. Updated cost guidance for 2025 also reflects strategic investments in additional technical studies and infrastructure, enabled by the strength of our balance sheet. For example, additional growth capital has been earmarked to enhance ventilation infrastructure linked to the Presqu’île exploration ramp and to accelerate development activities.

“Wesdome continues to strengthen its financial foundation, underpinned by higher gold prices, robust cash generation, and a debt‑free balance sheet. With liquidity now exceeding $500 million, Wesdome is in its strongest position in company history and is developing a capital framework that will balance growth with a disciplined capital return to shareholders.”

Consolidated Financial and Operating Highlights

Eagle River (Ontario, Canada)

Eagle River, which is located 50 kilometres due west of Wawa, Ontario, consists of the Eagle River underground mine (producing since 1995) and a mineral processing facility with a permitted capacity of 1,200 tonnes per day.

Operational and Financial Results

1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.

1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.

Operating Highlights

During Q2 2025, Eagle River produced 25,612 ounces of gold as compared to 19,272 ounces in Q2 2024 primarily due to a 44% increase in average grade. As planned, during Q2 2025, a major portion of tonnes produced were from two zones: 300 and 720F.

In the first half of 2025, Eagle River has produced 54,611 ounces, a 24% increase over 44,171 ounces in the first half of 2024. The increase relative to the prior period reflects a 19% increase in average grade and a 4% increase in mill throughput, supported by reduced dilution, higher grade reconciliation and consistent tonnage yielding increased ounces from the 300 Zone. These results demonstrate continued progress in optimizing stope design, improving execution, and refining grade control.

Mill throughput of 48,623 tonnes was 7% lower than the second quarter of 2024, impacted by an 18-day planned shutdown in May and June 2025 for mill maintenance and parts replacement to support growth plans. Mill throughput of 108,633 tonnes during the first half of 2025 was 4% higher when compared to the same period in 2024 as initiatives to increase drilled and developed inventories started to deliver results. Daily throughput rose 5% year-over-year to 600 tonnes in the first half of 2025 up from 572 tonnes in the comparative period in 2024.

Q2 2025 production costs of $598 per tonne were largely unchanged compared to the comparative quarter in 2024 despite a planned maintenance shutdown, which resulted in a greater share of fixed costs spread over lower throughput. For the first six months of 2025, production costs per tonne increased by 2% to $597, reflecting similar factors.

Financial Highlights

In Q2 2025, Eagle River’s gold revenue increased by 119% to $122.6 million from $55.9 million in Q2 2024 due to a higher average realized price of gold sold and a 54% increase in ounces sold. During the first half of 2025, Eagle River’s gold revenue increased by 78% when compared to the same period in 2024 due to a higher average realized price of gold sold and a 22% increase in ounces sold.

Cost of sales in Q2 2025 was $32.7 million, an increase of 10% relative to the comparative period in 2024 primarily due to a $4.3 million increase in mine and mill operating costs and increased royalties mainly due to more ounces produced, partially offset by a change in inventory levels of $2.4 million. Cost of sales for the first half of 2025 totaled $69.6 million, a 10% increase compared to the same period in 2024. This was principally driven by an $8.8 million increase in mine and mill operating costs, reflecting higher throughput and increased royalties from greater gold production. The impact was partially offset by a $4.6 million change in inventory levels.

Cash costs per ounce of gold sold declined to $1,207 (US$872) in Q2 2025 from $1,695 (US$1,239) in Q2 2024 due to an increase in ounces sold. Similarly, cash costs per ounce of gold sold decreased to $1,268 (US$899) in the first half of 2025 from $1,410 (US$1,038) in the comparative period in 2024 due to an increase in ounces sold.

In Q2 2025, AISC per ounce of gold sold decreased by 24% to $1,929 (US$1,394) as compared to Q2 2024, due to a 54% increase in ounces sold partially offset by 10% higher cash costs and 44% growth in sustaining capital expenditures. During the first half of 2025, AISC per ounce of gold sold decreased by 4% to $1,924 (US$1,365) as compared to the same period in 2024, due to a 22% increase in ounces sold partially offset by 10% higher cash costs and 43% growth in sustaining capital expenditures. In H2 2025, the rate of capital expenditures is expected to increase as Eagle River accelerates deferred development and new equipment is received.

Exploration Update

Drilling Continues to Delineate 300 Zone and Expand 6 Central Zone

Drill results at the 300-Fold Zone in the second quarter confirm the updated interpretation of a sub-parallel structure with mineralization plunging at a shallower angle than the main 300 Zone mineralization. Gaps in the interpreted mineralization wireframe will be targeted with infill drilling in the coming quarter.

In the 6 Central Zone, drilling continues to confirm the down-plunge continuity of mineralization, demonstrating similar thickness and grade. Located near existing infrastructure, the zone remains open at depth and provides the potential opportunity to establish another new high-grade mining front at intermediate depths.

Near Surface Opportunities for 720 Falcon

A combination of surface holes and underground holes were drilled to evaluate the lateral and up-plunge continuity of the 720 Falcon Zone mineralization. Logging of quartz veining in core at the target depths gives visual confirmation of the continuation of the host structure, with assays pending.

Drilling in Falcon 311 Targeting Growth Along Strike and Down-Plunge

The year-end 2024 resource model identified growth opportunities at the Falcon 311 Zone, with mineralization open to the east, west, and down-plunge. Drilling during the quarter focused on evaluating the continuity of the mineralization to the east and down-plunge to the southeast in areas closer to existing development. Assays remain pending with further drilling planned to evaluate the continuity to the west and down-plunge to the southwest.

Global Model

Four underground rigs will be drilling global model targets between now and November, representing nearly 40,000 metres. These global model targets are advanced, a block model mixture of geologic potential with some locally inferred material. The drill program will enable category conversion of the target material. The global model drill results will contribute to the updated technical report, which has a new cut-off date of December 31, 2025.

Surface drilling at the Mishi deposit commenced in the second quarter with one rig, with a second rig scheduled to commence in September. The drill program has been designed to twin existing holes as part of a geological and structural review including evaluating continuity between mineralized zones and potential controls on deep mineralization beneath the existing open pit. Drilling at Mishi will contribute to the global model initiative, with the aim of evaluating potential to support the fill-the-mill strategy.

Surface Exploration

Falcon 720 drill core was prioritized in the second quarter and will remain a key focus, together with core and surface geochemical samples from the Birch Vein during the third quarter. Birch Vein is located approximately two kilometres northeast of the intrusive diorite that hosts the Eagle River Mine.

Surface drilling during the quarter also evaluated potential parallel structure between 6 zone and 2 zone in the Eagle River Mine intrusive diorite. Assays are expected in quarter three, where follow-up drilling may be executed after the Mishi-Magnacon drill programs.

Kiena (Québec, Canada)

Kiena is a fully permitted integrated mining and milling operation located on a 75 km² land package in Val-d’Or, Québec. The site features a mill with a permitted capacity of 2,040 tonnes per day.

Operational and Financial Results

1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.

1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.

Operating Highlights

In Q2 2025, Kiena produced 17,169 ounces, a 31% decrease from 24,763 ounces in Q2 2024. Lower production levels reflect a 13% reduction in throughput and a 20% decline in average grade, due to continued equipment constraints that limited access to planned stopes as well as underperformance in one high-grade stope due to limited delineation. Improved key mobile fleet availability and utilization through enhancements to maintenance resources and practices, together with access to new mining horizons and recent changes to site leadership point to a stronger second half.

Production in the first half of 2025, which was entirely sourced from Kiena Deep, totaled 33,862 ounces compared to 33,186 ounces in the first half of 2024. As previously indicated, production is expected to be weighted toward the second half of the year, with Q4 representing about 40% of production for the year.

Average grade for the quarter was 10.7 g/t, down from 13.5 g/t in Q2 2024. Access to higher-grade areas was impacted by continued equipment availability constraints that limited access to planned stopes and several high-grade stopes originally scheduled for Q2 were deferred. As a result, similar to the first quarter, several recovered stopes at lower grade were mined.

Subsequent to quarter end, a longer than planned hoist maintenance shutdown resulted in reduced mine production for ten days. An independent review of critical infrastructure at Kiena is currently underway as part of a risk assessment.

Production costs per tonne were $494 in Q2 2025, up from $391 in Q2 2024, driven by higher stockpile and inventory adjustments, including additional contractor support and maintenance expenses. Production costs per tonne increased to $492 in the first half of 2025 from $424 in the comparative prior year period, reflecting similar factors as well as lower throughput volumes.

Financial Highlights

In Q2 2025, Kiena’s gold revenue increased by 20% to $85.8 million from $71.8 million in Q2 2024, primarily due to a higher average realized price per ounce of gold sold. In the first half of 2025, Kiena’s gold revenue increased by 66% to $157.7 million from $95.1 million in the comparative period in 2024, due to an 18% increase in ounces sold and a higher average realized price per ounce of gold sold.

Cost of sales in Q2 2025 was $26.5 million, an increase of 21% over the comparative period in 2024 primarily due to a $2.6 million increase in mine operating costs, which was driven by lower average grade. Cost of sales in the first half of 2025 was $49.6 million, an increase of 17% over the comparative period in 2024 primarily due to a $5.9 million increase in mine operating costs.

Cash costs per ounce of gold sold in Q2 2025 were $1,397 (US$1,009), an increase of 44% compared to $967 (US$707) in Q2 2024 primarily due to a decrease in ounces sold and an increase in mine operating costs. Cash costs per ounce of gold sold in the first half of 2025 were $1,354 (US$961), a decrease of 1% compared to $1,374 (US$1,011) in the comparative period in 2024 primarily due to an increase in ounces sold offset by higher mine operating costs.

AISC per ounce of gold sold increased by 55% in Q2 2025 to $2,380 (US$1,720) from $1,536 (US$1,123) in Q2 2024 due to a 16% decrease in ounces sold, an increase in aggregate mine operating costs and a 56% increase in sustaining capital expenditures. AISC per ounce of gold sold decreased by $14 in the first half of 2025 to $2,209 (US$1,567) from $2,223 (US$1,636) in the first half of 2024 due to an 18% increase in ounces sold offset by increase in aggregate mine operating costs and increased sustaining capital expenditures.

Progress at Presqu’île Zone and Exploration Ramp

Ramp access to the Presqu’île orebody is well established. Exploration and delineation drilling programs are underway with early delineation drilling of the first stopes intersecting visible gold in areas of higher-grade block model designs, giving early-stage confidence in the modelling work. Surface drilling to evaluate the down-plunge continuity of the mineralization has commenced. Development remains on track with initial stope production expected in late 2025 or Q1 2026. Processing of stockpiled development ore has commenced under the bulk sample permit received in the second quarter. The mining permit has been submitted with approval expected in early fall.

The exploration ramp development is on schedule for completion with breakthrough to 33-level anticipated to be achieved by year end. The project cost is trending higher than budget, driven primarily by scope expansion to upgrade ventilation capacity and attain greater mining flexibility. Kiena is looking at options to reduce costs by bringing certain work in-house.

Exploration Update

Exploration Drift on 109-Level to be Extended

Drilling of the VC Zone from the new 109-level exploration drift was suspended during the second quarter due to poor ground conditions between the drilling bay and the VC Zone resulting in difficulty reaching the target. A decision was made to extend the drift a further 200 metres to the northwest, thereby establishing a drill platform in favourable basaltic host rock. Drilling of the VC Zone and the nearby North Zone target will recommence in the fourth quarter after the new development is completed. The VC Zone is a top priority for exploration in 2025 as it historically returned a high-grade intercept at the base of the mineralization wireframe, is open at depth, and demonstrates a mineralization style analogous to Kiena Deep.

Kiena Deep Continues to Deliver; Drilling From 134-Level Begins

The ongoing exploration of the Kiena Deep A and Kiena Deep Footwall zones from the 127-level ramp and remuck is confirming the continuity of the zone. Drill assays and geological modeling continue to support the initial interpretation that additional lenses may be delineated with further drilling, and some existing lenses can be extended laterally. Drill information is being incorporated into an updated lithostructural model and an updated mineral resource, both of which will form a basis for the 2026 technical report.

Drilling from the second drill bay on the 134-level exploration drift is commencing in August. The planned program will target Kiena Deep and Footwall mineralization, with the more optimal drill intersection angle expected to improve true width intercepts and provide stronger geostatistical support for grade continuity and resource modelling.

33-Level Accessible for Drilling, Delineation of Presqu’île Underway

Rehabilitation of the 33-level development to the east has allowed the establishment of more optimal drilling platforms for the testing of Dubuisson, Duchesne, and other 33-level targets. Exploration drilling on 33-level in the second quarter targeted lateral extensions and the down-plunge continuation of the No.22 Shawkey Zone and the historic Shawkey Main mine. Drilling has intersected mineralization in positions that could represent the northwest continuation of Shawkey Main mineralization. Further holes are planned before the rig relocates to Dubuisson early in the third quarter, where underground drilling is planned to evaluate the down plunge continuity of mineralization.

Surface Exploration

The summer barge drilling program at Kiena commenced in June with three rigs currently active. At Dubuisson, one drill rig will initially focus on infill and geotechnical drilling in support of reserve growth, with evaluation of the lateral continuity of the mineralization and resource growth scheduled for later in the quarter. The other two rigs will evaluate the potential of regional targets at Wesdome and the 134 Zone located to the northwest of Dubuisson. A high-resolution drone magnetic survey led by Abitibi Geophysics has commenced, with modelling and interpretive work expected to be completed before end of the third quarter.

2025 Outlook

During the first half of 2025, Wesdome continued to execute on its strategic plan, increasing gold production by 14% year-over-year while reducing cost of sales and all-in sustaining costs (AISC) per ounce by 7% and 3%, respectively. The Company also delivered record half-year results for net income, net cash from operating activities, and free cash flow, which rose to $100.4 million.

As outlined in the initial 2025 outlook, production remains weighted toward the second half of the year, with the fourth quarter expected to be the strongest quarter of the year.

At Eagle River, production is trending toward the high end of its initial guidance range, supported by higher grades and improved productivity. As a result, the Company is increasing Eagle River’s production guidance to 105,000 to 115,000 ounces from 100,000 to 110,000 previously and narrowing the grade guidance to 14 to 15 grams per tonne from 13 to 15 grams per tonne previously. Production at Eagle River in the second half of the year is expected to represent approximately 55% of its full year 2025 output.

Cash costs per ounce sold are expected to remain essentially unchanged, while AISC is expected to improve to US$1,375 to US$1,500 from US$1,400 to US$1,550 previously, benefitting from ongoing cost optimization initiatives. Surface exploration expenses at Eagle River are expected to increase by $5 million, primarily due to the acquisition of Angus.

At Kiena, production at mid-year is tracking at or slightly below the low end of the initial annual guidance range of 90,000 to 100,000 ounces, primarily due to equipment availability and utilization constraints that limited access to planned stopes. Following a comprehensive review of near term plans and risk mitigation strategies, the Company is updating Kiena’s full-year 2025 production guidance to 80,000 to 90,000 ounces from 90,000 to 100,000 ounces previously. As previously indicated, production is expected to be weighted toward the second half of the year, with Q4 representing about 40% of production for the year. Grade expectations remain unchanged.

Due to the lower volume of ounces expected to be sold and a temporary period of increased costs associated with enhanced maintenance and operational optimization, site cash costs per ounce have been revised to $1,200 to $1,375 from $1,025 to $1,150 and AISC per ounce is now expected to be US$1,400 to US$1,575 from US$1,225 to US$1,400 previously.

While sustaining capital guidance for Kiena remains unchanged, growth capital guidance has been revised to $65 million, up from the previous $40 million, reflecting redesign of the ventilation infrastructure and associated development and services, providing an independent circuit for the Presqu’île orebody, further unlocking the potential. Additional to this, investment is planned in capital development to accelerate the development footprint, providing mining flexibility, as Presqu’île ramps up for higher tonnage in 2026. Both investments are reflecting increased development and infrastructure spending related to the Presqu’île exploration ramp, which remains on track for completion later this year.

Corporate and general expenditures for 2025 are expected to be approximately $30 million, reflecting additional costs related to technical reporting and corporate process improvement initiatives. These expenditures are allocated equally across both operations and included in the Company’s AISC calculations.

The following table outlines Wesdome’s updated 2025 guidance compared to its initial guidance set forth in the Company’s press release dated January 14, 2025:

1. Consolidated 2025 guidance for corporate and general costs excludes an estimated $7 million in stock-based compensation. Corporate G&A of $30 million is allocated equally to each mine and is included in the Company’s AISC calculation.
2. Exploration and evaluation costs primarily include surface drilling activities and regional office expenses.
3. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of non-IFRS measurements to the financial statements.
4. Total capital expenditures are the sum of sustaining and growth capital expenditures and are reported under investing activities on the statements of cash flows in the Company’s financial statements.

2026 Production Guidance

The following table outlines Wesdome’s fiscal 2026 production guidance:

The financial statements and management’s discussion and analysis will be available on the Company’s website at www.wesdome.com and on SEDAR+ www.sedarplus.ca during the evening of Wednesday, August 13, 2025.

About Wesdome

Wesdome is a Canadian-focused gold producer with two high-grade underground assets, the Eagle River mine in Ontario and the Kiena mine in Québec. The Company’s primary goal is to responsibly leverage its operating platform and high-quality brownfield and greenfield exploration pipeline to build a growing value-driven gold producer.