During the quarter, the Company received a cash distribution of $9 M from the Peak Gold JV. On May 13, 2026, the Peak Gold JV started processing Manh Choh’s second campaign of 2026 and are guiding to 10,000 ounces of production to Contango’s account for this campaign, which includes ore in stockpiles at Fort Knox that were not processed during Q1-2026.

Lucky Shot Project:

In November 2025, the Company mobilized a drill rig at the Lucky Shot mine site to commence the first phase of a 18,000-meter underground and surface in-fill drilling program. The Company began reporting assay results from this program during the first quarter of 2026. This drilling program, along with detailed engineering, hydrology and geotechnical studies, is expected to support the preparation of a feasibility level mine and transportation plan for Lucky Shot, with the objective of targeting annual gold production of 40,000 to 50,000 using the Direct Shipping Ore (DSO) approach, assuming positive exploration results. The Company expects to complete the feasibility study in the first half of 2027 and make a production decision in 2027.

Johnson Tract Project:

Activities at the Johnson Tract Project focused on planning, resourcing, permitting coordination, and logistical preparations in support of the Company’s planned 2026 field program. On December 1, 2025, the Johnson Tract Critical Metals Project was posted to the Federal Permitting Dashboard as a covered project under Title 41 of the Fixing America’s Surface Transportation Act, commonly referred to as FAST-41. The Federal Permitting Improvement Steering Council announced the project’s FAST-41 coverage on December 2, 2025. The U.S. Army Corps of Engineers is identified as the lead federal permitting agency for the project.

The Company has advanced planning activities for the proposed 2026 field season, including solicitation and review of bids for road construction and helicopter support associated with planned access improvements between the Johnson Tract camp and the proposed portal site. These activities are intended to support the Company’s operational timeline and continued advancement of the project through the permitting and development planning process. To date, the Company has completed three key steps of the overall permitting process through meeting various timelines as laid out in the FAST-41 permitting dashboard. The Company is also continuing to advance State of Alaska permits required to start construction of the exploration adit in 2027.

Kitsault Valley Project:

Following completion of a new mineral resource estimate expected by the end of the second quarter of 2026, a 40,000 meter surface drilling program is expected to begin in June. The planned $25 M campaign aims to infill known mineral resources at Homestake, Homestake Silver, Wolf, Dolly Varden, North Star and Torbrit, while testing high-priority exploration targets across the project’s wider holdings in the southern corner of the Golden Triangle. Following this year’s drill program, the Company is planning to prepare a preliminary development plan in the form of an Initial Assessment for the Kitsault Valley assets.
 

Repayments of Debt, Reduction of Hedge Contracts and Financing:

• The Company’s cash and cash equivalents position as of March 31, 2026 was $97.5 M.
• In Q1-2026, Contango repaid $1.0 M on the credit facility, reducing the outstanding principal balance to $13.6 M.
• On February 12, 2026, the Company raised gross proceeds of $50 M by issuing 1,678,206 shares of common stock and pre-funded warrants to purchase up to 325,000 shares of common stock at an offering price of $24.96 per share and $24.95 per pre-funded warrant.
• On February 12, 2026, the Company paid $46.4 M to settle gold hedge contracts for 15,446 ounces with an average strike price of $2,025 per ounce with maturities ranging between March and September 2026. In addition, as part of a price protection strategy to offset the hedge settlements, the Company paid $0.4 M to purchase 15,446 puts with a strike price of $4,000 per ounce.
• On March 26, 2026, the Company sold 4,445 put contracts with a maturity date of March 31, 2026 for proceeds of $52,946. The cost of these put contracts were $41,023. 11,000 put contracts remain outstanding with maturity dates in June and September of 2026.
• As of the date of this release, the remaining gold hedge contracts total 7,000 ounces which mature on December 31, 2026 and 15,000 ounces that mature in the first half of 2027

Corporate Development – Dolly Varden Merger:

On March 26, 2025, the Company completed its merger-of-equals with Dolly Varden Silver Corporation (“Dolly Varden”). Upon completing the acquisition, Dolly Varden shareholders owned approximately 48% of the combined company. The combined Company changed the name to Contango Silver & Gold and was successfully listed to the Toronto Stock Exchange (“TSX”) where trading began on April 13, 2026 under the same trading symbol CTGO.

Corporate Development – Acquisition of Lucky Shot Lease and Royalty

Subsequent to quarter end, on May 4, 2026, the Company entered into a purchase and sale agreement (with Alaska Hardrock Inc. to acquire 100% ownership of its Lucky Shot project by purchasing from AHI the underlying real property, mining claims and mining equipment and extinguishing the outstanding 2% net smelter returns royalty held by AHI. The consideration totaled $16,074,000, comprised of the following:

• Cash deposit of $300,000 (paid)
• Cash payment of $1,709,250 due on signing of the Purchase Agreement (paid)
• Cash payable of $4,064,750 due on closing, which is expected to occur no later than July 1, 2026 (the “Closing Date”)
• Promissory note of $10 M:
  • 5% annual interest rate compounding monthly, payable annually
  • Principal repayments of $2,000,000 on the second and third anniversary dates of the Closing Date with the remaining principal balance due on the fourth anniversary of the Closing Date
  • Secured by real property, mining claims, and other assets acquired

Statement of Operations for Q1-2026 compared to Q1-2025:

The Company reported total income from operations of $4.8 M in Q1-2026 compared to $19.3 M for Q1-2025. In Q1-2026, the Company reported adjusted net income of $4.7 M compared to $17.9 M for Q1-2025. The Company reported net loss of $14.3 M or $0.83 loss per fully diluted share. This compares to a net loss of $22.5 M for Q1-2025 or $1.88 loss per fully diluted share. The net loss for Q1-2026 and Q1-2025 includes a loss on derivative contracts related to the hedges in the amounts of $19.0 M and $40.5 M, respectively.

Statement of Cash Flows for Q1-2026 compared to Q1-2025:

Net cash used in operating activities was $49.6 M for Q1-2026 compared to $28.6 M provided by operating activities in Q1-2025. The reduction in net cash provided by operating activities was primarily driven by realized loss of hedge contracts recognized during Q1-2026. Cash provided by investing activities was $30.8 M for Q1-2026 compared to $nil M in Q1-2025. Cash provided by financing activities in Q1-2026 was $51.4 M, primarily related to cash proceeds from an equity offering offset by principal repayments of $1.0 M on the credit facility. This compares to cash outflows of $13.7 M in Q1-2025, primarily related to principal repayments of $13.8 M on the credit facility. The Company’s cash and cash equivalents position as of March 31, 2026 was $97.5 M compared to $64.8 M as of December 31, 2025.

Adjusted Net Income (Non-GAAP)

Management uses Adjusted Net Income to evaluate the Company’s operating performance, and to plan and forecast operations. The Company believes the use of Adjusted Net Income reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Management’s determination of the components of Adjusted Net Income is evaluated periodically and is based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net loss (GAAP) is reconciled to Adjusted net income (Non-GAAP) adjusted for loss on derivative contracts in the following table: