Item 3. Legal Proceedings
ITEM
3. LEGAL PROCEEDINGS
Other
than as described below, neither the Company nor its property is the subject of any pending legal proceedings. The Company is not aware
of any other legal proceedings in which any director, officer or affiliate of the Company, any owner of record or beneficially of more
than 5% of any class of the Company’s voting securities, or any associate of any such director, officer, affiliate or security
holder of the Company, is a party adverse to the Company or any of its subsidiaries or has a material interest adverse to the Company
or any of its subsidiaries.
Crescent
Mining Litigation
On
July 28, 2021, a lawsuit was filed in the U.S. District Court for the District of Idaho brought by Crescent Mining, LLC (“Crescent”).
The named defendants include Placer Mining, Robert Hopper Jr., and the Company. The lawsuit alleges that Placer Mining and Robert Hopper
Jr. intentionally flooded the Crescent Mine during the period from 1991 and 1994, and that the Company is jointly and severally liable
with the other defendants for unspecified past and future costs associated with the presence of acid mine drainage in the Crescent Mine.
The plaintiff has requested unspecified damages. On September 20, 2021, the Company filed a motion to dismiss Crescent’s claims
against it, contending that such claims are facially deficient. On March 2, 2022, Chief U.S. District Court Judge, David C. Nye
granted in part and denied in part the Company’s motion to dismiss. The court granted the Company’s motion to dismiss in
respect of Crescent’s cost recovery claim under CERCLA Section 107(a) and declaratory judgment, tortious interference, trespass,
nuisance and negligence claims. These claims were dismissed without prejudice. The court denied the motion to dismiss filed by Placer
Mining Corp. for Crescent’s trespass, nuisance and negligence claims. Crescent later filed an amended complaint on April 1, 2022.
Placer Mining Corp. and Bunker Hill Mining Corp are named as co-defendants. Bunker Hill responded to the amended filing, refuting and
denying all allegations made in the complaint except those that are assertions of fact as a matter of public record. The Company believes
Crescent’s lawsuit is without merit and intends to vigorously defend itself, as well as Placer Mining Corp. pursuant to the Company’s
indemnification of Placer Mining Corp. in the sale and purchase agreement executed between the companies for the Mine on December 15,
2021.
38
During the year ended December 31, 2025, the Company
attended a mediation session with the plaintiff. The lawsuit continues to advance through the discovery and pre-trail phase, in which
information is gathered and exchanged. On December 12, 2025 Americas Gold and Silver Corporation closed the acquisition of Crescent Silver,
LLC which owns the Crescent Mine in Idaho, USA.
On
October 26, 2021, the Company asserted claims against Crescent in a separate lawsuit. Bunker Hill Mining Corporation v. Venzee Technologies
Inc. (Venzee) et al, Case No. 2:21-cv-209-REP, was filed in the U.S. District Court for the District of Idaho on May 14, 2021. The Company
has subsequently executed a tolling agreement with Venzee in exchange for dropping its lawsuit. The Company originally filed this lawsuit
on May 14, 2021 against other parties but has since filed an amended complaint to include its claims against Crescent. This lawsuit has
been consolidated into the lawsuit Crescent filed on July 28, 2021.
ITEM
4. MINE SAFETY DISCLOSURES
The
enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (“the Act”) requires the operators of mines to include
in each periodic report filed with the SEC certain specified disclosures regarding the Company’s history of mine safety. The information
concerning mine safety disclosures required by the Act and this Item is included in Exhibit 95.1 to this report.
PART
II