Bunker Hill Mining Corp. 10-Q

Item 1. Financial Statements The condensed interim consolidated financial statements of Bunker Hill Mining Corp., (“Bunker Hill”, the “Company”, or the “Registrant”) a Nevada corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission. Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2024, and all amendments thereto. Bunker Hill Mining Corp. Condensed Interim Consolidated Balance Sheets (Expressed in U.S. Dollars) Unaudited June 30, December 31, 2025 2024 ASSETS Current assets Cash $ 7,614,181 $ 3,786,277 Restricted cash (note 8) 2,975,000 4,475,000 Accounts receivable and prepaid expenses (note 3) 859,511 690,358 Asset held for sale 40,000 40,000 Spare parts inventory 341,004 341,004 Total current assets 11,829,696 9,332,639 Non-current assets Long term deposit (note 6) 1,244,807 254,106 Equipment (note 4) 1,528,335 1,741,981 Right-of-use asset (note 4) 686,967 758,125 Land 309,861 309,861 Bunker Hill Mine and mining interests (note 6) 18,651,322 18,795,591 Process plant (note 5) 82,312,485 66,409,247 Total assets $ 116,563,473 $ 97,601,550 EQUITY AND LIABILITIES Current liabilities Accounts payable (note 15) $ 3,986,081 $ 14,678,901 Accrued liabilities 1,926,206 5,210,939 Current portion of lease liability (note 7) 164,028 189,368 Deferred share units liability (note 11) 710,112 929,466 Environment protection agency cost recovery payable (note 8) 3,000,000 3,000,000 Current portion of silver loan (note 9) 249,000 - Current portion of stream debenture (note 9) - 4,063,253 Interest payable (note 9) 1,230,278 522,485 Current income tax payable (note 13) 950,000 1,050,000 Total current liabilities 12,215,705 29,644,412 Non-current liabilities Lease liability (note 7) 18,903 62,282 Series 1 convertible debenture (note 9) 3,950,572 5,494,151 Series 2 convertible debenture (note 9) 8,243,767 13,898,481 Series 3 convertible debenture (note 9) 2,296,941 - Stream debenture (note 9) - 52,923,747 Silver loan (note 9) 35,526,913 31,802,708 Debt facility (note 9) 14,027,760 9,236,610 Environment protection agency cost recovery liability, net of discount (note 8) 6,385,091 5,549,229 Derivative warrant liability (note 10) 5,115,899 1,125,295 Total liabilities 87,781,551 149,736,915 Shareholders’ equity (deficiency) Preferred shares, $ 0.000001 par value, 10,000,000 preferred shares authorized; nil preferred shares issued and outstanding (note 10) - - Common shares, $ 0.000001 par value, 2,500,000,000 and 1,500,000,000 common shares authorized; 911,615,863 and 349,698,625 shares of common stock issued and outstanding, respectively (note 10) 910 348 Additional paid-in-capital (note 10) 122,652,648 61,233,369 Accumulated other comprehensive income 2,381,410 ( 3,002,361 ) Accumulated deficit ( 96,253,046 ) ( 110,366,721 ) Total shareholders’ equity (deficiency) 28,781,922 ( 52,135,365 ) Total shareholders’ equity (deficiency) and liabilities $ 116,563,473 $ 97,601,550 The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. 5 Bunker Hill Mining Corp. Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Expressed in United States Dollars) Unaudited Three Months Ended Six Months Ended June 30, June 30 2025 2024 2025 2024 Operating expenses (note 14) $ ( 3,110,392 ) $ ( 4,150,114 ) $ ( 6,019,766 ) $ ( 7,937,745 ) Other income or gain (expense or loss) Interest income 58,149 164,381 121,478 455,711 Change in derivative liabilities (note 10) 1,832,864 ( 351,402 ) 2,295,627 ( 615,345 ) Gain (loss) on FV of debentures (note 9) 1,081,127 ( 498,263 ) 1,002,763 ( 655,495 ) Loss on FV of silver loan (note 9) ( 2,961,015 ) - ( 9,029,947 ) - Interest expense (note 7,8,9) ( 2,092,965 ) ( 2,176,868 ) ( 4,303,963 ) ( 4,260,603 ) Finance costs (note 9) ( 1,007,750 ) - ( 1,014,866 ) - (Loss) gain on stream debentures (note 9) ( 549,854 ) 2,748,000 4,149,606 2,531,000 Gain on debt modification silver loan (note 9) 468,878 - 468,878 - Gain on debt settlement (note 9) 29,850,212 - 29,850,212 - Loss on debt settlement (note 9) ( 3,077,979 ) ( 133,232 ) ( 3,376,692 ) ( 203,325 ) Other income - - - 694 Loss on foreign exchange ( 31,387 ) ( 9,704 ) ( 29,655 ) ( 4,050 ) Income (loss) for the period pre tax $ 20,459,888 $ ( 4,407,202 ) $ 14,113,675 $ ( 10,689,158 ) Deferred tax recovery (note 13) - 504,798 - 1,204,718 Income (loss) for the period $ 20,459,888 $ ( 3,902,404 ) $ 14,113,675 $ ( 9,484,440 ) Other comprehensive income, net of tax: Gain on change in FV on own credit risk (note 9) 3,351,229 475,762 5,383,771 764,134 Other comprehensive income 3,351,229 475,762 5,383,771 764,134 Comprehensive income (loss) $ 23,811,117 $ ( 3,426,642 ) $ 19,497,446 $ ( 8,720,306 ) Net income (loss) per common share – basic $ 0.04 $ ( 0.01 ) $ 0.03 $ ( 0.03 ) Net income (loss) per common share – fully diluted $ 0.03 $ ( 0.01 ) $ 0.02 $ ( 0.03 ) Weighted average common shares – basic 501,502,772 338,800,384 434,941,924 334,103,756 Weighted average common shares – fully diluted 711,968,496 338,800,384 640,203,697 334,103,756 The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. 6 Bunker Hill Mining Corp. Condensed Interim Consolidated Statements of Cash Flows (Expressed in U.S. Dollars) Unaudited Six Months Six Months Ended Ended June 30, 2025 June 30, 2024 Operating activities Net income (loss) for the period $ 14,113,675 $ ( 9,484,440 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation (note 10) 119,810 1,009,951 Depreciation expense (note 4) 304,493 185,656 Change in fair value of warrant liability (note 10) ( 2,295,627 ) 615,345 Deferred tax expense (note 13) - ( 1,204,718 ) Change in fair value of silver loan (note 9) 9,029,947 - Interest expense on lease liability (note 7) 18,451 41,005 Financing costs ( 449,545 ) - (Gain) on debt settlement (note 9) ( 29,850,212 ) - Loss on debt settlement (note 9) 3,376,692 203,325 (Gain) on debt modification (note 9) ( 4,618,484 ) ( 2,531,000 ) Accretion of liabilities (note 8, 9) 2,534,538 3,209,877 (Gain) loss on fair value of convertible debentures (note 9) ( 1,002,763 ) 655,495 Changes in operating assets and liabilities: Accounts receivable and prepaid expenses ( 1,159,854 ) ( 1,016,447 ) Accounts payable ( 2,779,621 ) 1,595,914 Accrued liabilities 105,968 ( 134,370 ) Current income tax payable ( 100,000 ) - Interest payable 1,724,453 1,009,728 Net cash (used in) operating activities ( 10,928,079 ) ( 5,844,679 ) Investing activities Process plant ( 21,200,108 ) ( 10,414,510 ) Mine improvements ( 2,110,812 ) ( 1,465,994 ) Purchase of machinery and equipment - ( 441,654 ) Net cash (used in) investing activities ( 23,310,920 ) ( 12,322,158 ) Financing activities Proceeds from issuance of common shares, net 25,779,387 - Proceeds from debt facility 11,000,000 - Proceeds from Teck promissory note 4,400,000 - Repayment of Teck promissory note ( 4,487,160 ) - Lease payments ( 125,324 ) ( 397,335 ) Net cash provided by (used in) financing activities 36,566,903 ( 397,335 ) Net change in cash 2,327,904 ( 18,564,172 ) Cash, beginning of period 8,261,277 26,578,596 Cash, end of period $ 10,589,181 $ 8,014,424 Supplemental disclosures Non-cash activities Interest payable settled with common shares $ 1,017,473 $ 1,015,262 Services settled with common shares $ 3,964,979 $ - Loan Facility settled with common shares $ 6,044,210 $ - Stream settled with common shares $ 20,472,126 $ - Reconciliation from Cash Flow Statement to Balance Sheet: Cash and restricted cash end of period $ 10,589,181 $ 8,014,424 Less restricted cash 2,975,000 4,475,000 Cash end of period $ 7,614,181 $ 3,539,424 The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. 7 Bunker Hill Mining Corp. Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity (Deficiency) (Expressed in U.S. Dollars) Unaudited Accumulated Additional other Common stock paid-in- comprehensive Accumulated Shares Amount capital income deficit Total Balance, December 31, 2024 349,698,625 $ 348 $ 61,233,369 $ ( 3,002,361 ) $ ( 110,366,721 ) $ ( 52,135,365 ) Stock-based compensation - - 265,217 - - 265,217 Shares issued for interest payable 12,223,216 12 1,289,963 - - 1,289,975 Shares issued for DSUs vested Shares issued for DSUs vested, shares Shares issued for RSUs vested 672,450 1 ( 1 ) - - - Shares issued for services 37,758,202 38 3,877,676 - - 3,877,714 Shares issued for private placement 252,215,751 252 19,500,019 - - 19,500,271 Shares issued for debt 259,047,619 259 26,516,336 - - 26,516,595 Initial recognition of CD1, CD2, and CD3 - - 9,970,069 - - 9,970,069 OCI - - - 5,383,771 - 5,383,771 Net (loss) for the period - - - - 14,113,675 14,113,675 Balance, June 30, 2025 911,615,863 $ 910 $ 122,652,648 $ 2,381,410 $ ( 96,253,046 ) $ 28,781,922 Balance, December 31, 2023 322,661,482 $ 321 $ 57,848,953 $ 808,662 $ ( 85,025,098 ) $ ( 26,367,162 ) Balance 322,661,482 $ 321 $ 57,848,953 $ 808,662 $ ( 85,025,098 ) $ ( 26,367,162 ) Stock-based compensation - - 873,076 - - 873,076 Shares issued for interest payable 23,619,707 24 2,427,541 - - 2,427,565 Shares issued for DSUs vested 750,000 1 83,801 - - 83,802 Shares issued for RSUs vested 2,667,436 2 ( 2 ) - - - OCI - - - ( 3,811,023 ) - ( 3,811,023 ) Net (loss) for the period - - - - ( 25,341,623 ) ( 25,341,623 ) Balance, December 31, 2024 349,698,625 $ 348 $ 61,233,369 $ ( 3,002,361 ) $ ( 110,366,721 ) $ ( 52,135,365 ) Balance 349,698,625 $ 348 $ 61,233,369 $ ( 3,002,361 ) $ ( 110,366,721 ) $ ( 52,135,365 ) The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements. 8 Bunker Hill Mining Corp. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited) Three and Six Months Ended June 30, 2025 (Expressed in U.S. Dollars) 1. Nature and Continuance of Operations Bunker Hill Mining Corp. (“we”, “us”, “Bunker Hill”, or the “Company”) was incorporated under the laws of the state of Nevada, U.S.A. on February 20, 2007, under the name Lincoln Mining Corp. Pursuant to a Certificate of Amendment dated February 11, 2010, the Company changed its name to Liberty Silver Corp., and on September 29, 2017, the Company changed its name to Bunker Hill Mining Corp. The Company’s registered office is located at 1802 N. Carson Street, Suite 212, Carson City, Nevada 89701, and its Canadian office is located at 300-1055 West Hastings Street, Vancouver, British Columbia, Canada, V6E 2E9. As of the date of this Form 10-Q, the Company had one subsidiary, Silver Valley Metals Corp. (“Silver Valley”, formerly American Zinc Corp.), an Idaho corporation created to facilitate the work being conducted at the Bunker Hill Mine in Kellogg, Idaho (“Bunker Hill Mine”). The Company was incorporated for the purpose of engaging in mineral exploration, and exploitation activities, and is currently focused on the development and planned operations of the Bunker Hill Mine. Bunker Hill holds a 100 % interest in the historic Bunker Hill Mine located in the town of Kellogg, Idaho. The Bunker Hill Mine previously operated between 1885 and 1981 producing over 165 million ounces of silver and 5 million tons of base metals during that time. We are currently focused on the construction of the Bunker Hill Mine mill facilities and upgrades to the Bunker Hill Mine historic underground infrastructure as well as further delineating the mine’s mineral resources. Going Concern These condensed interim consolidated financial statements have been prepared on a going concern basis. As is typical for a pre-production mining development company, the Company has incurred losses since inception resulting in an accumulated deficit of $ 96,253,046 and further losses are anticipated in the development of its business. The Company does not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without deferring payment on certain current liabilities and raising additional funds. In order to continue to meet the Company’s financial obligations in the current fiscal year and beyond, the Company must seek additional financing. This raises substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon the ability to create profitable and sustainable mining operations in the future and to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The accompanying condensed interim consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. These condensed interim consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. 9 2. Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the U.S. and the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, shareholders’ deficiency, or cash flows. It is management’s opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The unaudited condensed interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, which contains the annual audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis, for the year ended December 31, 2024. The interim results for the period ended June 30, 2025 are not necessarily indicative of the results for the full fiscal year. The unaudited condensed interim consolidated financial statements are presented in United States dollars, which is the Company’s functional currency. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes for items such as mineral reserves, useful lives and depreciation methods, potential impairment of long-lived assets, sale of mineral properties for the accounting of the conversion of the royalty convertible debenture (the “RCD”), deferred income taxes, settlement pricing of commodity sales, fair value of stock based compensation, accrued liabilities, estimation of asset retirement obligations and reclamation liabilities, convertible debentures, stream obligation, and warrants. Estimates are based on historical experience and various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates. 3. Accounts receivable and prepaid expenses Accounts receivable and prepaid expenses consists of the following: Schedule of Accounts Receivable and Prepaid Expenses June 30, December 31, 2025 2024 Prepaid expenses and deposits $ 696,222 $ 464,380 HST and interest receivable 163,289 125,978 U.S. Environment Protection Agency overpayment (note 8) - 100,000 Total $ 859,511 $ 690,358 4. Equipment, Right-of-Use Asset Equipment consists of the following: Schedule of Equipment June 30, December 31, 2025 2024 Equipment $ 2,454,489 $ 2,468,339 Less accumulated depreciation ( 926,154 ) ( 726,358 ) Equipment, net $ 1,528,335 $ 1,741,981 The total depreciation expense relating to equipment during the three and six months ended June 30, 2025, was $ 76,975 and $ 195,181 , respectively. Compared to the three and six months ended June 30, 2024, was $ 50,492 and $ 96,957 , respectively. 10 Right-of-use asset consists of the following: Schedule of Right-of-use Asset June 30, December 31, 2025 2024 Right-of-use asset 1,022,717 984,562 Less accumulated depreciation ( 335,750 ) ( 226,437 ) Right-of-use asset, net $ 686,967 $ 758,125 The total depreciation expense during the three and six months ended June 30, 2025, was $ 65,625 and $ 109,313 , respectively. Compared to the three and six months ended June 30, 2024, was $ 44,349 and $ 88,699 respectively. 5. Process Plant On May 13, 2022, the Company purchased a comprehensive package of equipment and parts inventory from Teck Resources Limited (“Teck”) a related party as of June 5, 2025 (note 15). The package comprised substantially all processing equipment of value located at the Pend Oreille mine site, including complete crushing, grinding and flotation circuits suitable for a planned ~1,500 ton-per-day operation at the Bunker Hill site, and total inventory of nearly 10,000 components and parts for mill, assay lab, conveyer, field instruments, and electrical spares. The process plant was purchased in an assembled state in the seller’s location, and included major processing systems, significant components, and a large inventory of spare parts. The Company has disassembled and transported it to the Bunker Hill site, and is reassembling it as an integral part of the Company’s future operations. The Company determined that the transaction would be accounted for as an asset acquisition, with the process plant representing a single asset, with the exception of the inventory of spare parts, which has been separated out on the condensed interim consolidated balance sheets as a non-current asset. As the plant is demobilized, transported and reassembled, installation and other costs associated with these activities are being captured and capitalized as components of the asset. Process plant consists of the following: Schedule of Process Plant June 30, December 31, 2025 2024 Mill purchase, detailed engineering, and construction costs $ 79,898,431 $ 65,545,594 Capitalized interest (note 9) 3,398,874 1,848,473 Disposal of grinding circuits ( 984,820 ) ( 984,820 ) Process Plant $ 82,312,485 $ 66,409,247 In August 2024, the Company sold a grinding circuit previously purchased from Teck as part of the Pend Oreille Mill purchase for $ 20,000 recognizing a loss on sale of equipment of $ 308,273 . In September 2024, the Company reclassified two remaining grinding circuits as assets at $ 40,000 held for sale and recognized a loss on sale of equipment of $ 616,547 . 6. Bunker Hill Mine and Mining Interests The Company purchased the Bunker Hill Mine (the “Mine”) in January 2022. The carrying cost of the Mine is comprised of the following: Schedule of Carrying Cost of Mine June 30, December 31, 2025 2024 Bunker Hill Mine purchase $ 14,247,210 $ 14,247,210 Capitalized development 8,189,484 6,626,865 Sale of mineral properties (note 9) ( 4,476,498 ) ( 2,768,510 ) Land 202,000 202,000 Definition drilling 489,126 488,026 Bunker Hill mine $ 18,651,322 $ 18,795,591 11 Land purchase and leases The Company owns a 225-acre surface land parcel valued at its original purchase price of $ 202,000 which includes the surface rights to portions of 24 patented mining claims, for which the Company already owns the mineral rights. On March 3, 2023, the Company entered into a lease agreement with C & E Tree Farm LLC for the lease of a land parcel overlaying a portion of the Company’s existing mineral claims package. The Company is committed to making monthly payments of $ 10,000 through February 2026. The Company has the option to purchase the land parcel through March 1, 2026, for $ 3,129,500 less 50% of the payments made through the date of purchase. On June 5, 2025, the Company executed an equity payment agreement with C & E Tree Farm, L.L.C., pursuant to which the Company issued 4,761,905 June 5, 2025 units (note 10) to C&E at a deemed price $ 0.105 to satisfy $ 500,000 of the purchase price payable under an existing option agreement between Silver Valley and C&E, dated March 3, 2023. Additionally, on June 6, 2025, the Company paid $ 500,000 to C&E Tree Farm LLC to satisfy $ 500,000 of the purchase price payable under an existing option agreement between Silver Valley and C&E dated March 3, 2023. This balance ($ 1,000,000 ) has been recognized on the condensed interim consolidated balance sheets as l ong term deposit. Sale of Mineral Properties On June 5, 2025, as consideration for Sprott stream conversion as described in note 9, the Company granted a royalty for 1.65 % of life-of-mine gross revenue from mining claims compromising of both primary and secondary claims, as well as any new or complementing surface and mineral rights derived from the surface and mineral rights within the existing boundaries of the Land Package that are subsequently acquired by the Company or Silver Valley. A sale of mineral properties of $ 1,324,199 corresponding to the issuance of the royalty on the interim consolidated balance sheets. On January 17, 2025, as consideration for Sprott advancing the debt facility, as described in note 9, the Company granted a royalty for 0.5 % of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company’s 2021 ground geophysical survey. A 0.35 % rate will apply to claims outside of these areas. On June 5, 2025, the 0.5 % royalty was amended to apply to both primary and secondary claims comprising the Project. A sale of mineral properties of $ 383,789 corresponding to the issuance of the royalty on the interim consolidated balance sheets. On December 19, 2024, as consideration for Sprott advancing the debt facility, as described in note 9, the Company granted a royalty for 0.5 % of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company’s 2021 ground geophysical survey. A 0.35 % rate will apply to claims outside of these areas. On June 5, 2025, the 0.5 % royalty was amended to apply to both primary and secondary claims comprising the Project. A sale of mineral properties of $ 397,335 corresponding to the issuance of the royalty on the interim consolidated balance sheets. On December 12, 2024, as consideration for Sprott advancing the debt facility, as described in note 9, the Company granted a royalty for 0.5 % of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company’s 2021 ground geophysical survey. A 0.35 % rate will apply to claims outside of these areas. On June 5, 2025, the 0.5 % royalty was amended to apply to both primary and secondary claims comprising the Project. A sale of mineral properties of $ 397,335 corresponding to the issuance of the royalty on the interim consolidated balance sheets. As a result of the above transactions with Sprott, including the (i) conversion of the royalty convertible debenture into a 1.85% royalty, (ii) consideration of Sprott advancing $15,000,000 on the loan facility a 1.5% royalty was granted, and (iii) Sprott stream conversion a 1.65% royalty was granted, as of June 30, 2025 Sprott holds a 5% life-of-mine gross revenue applying to both primary and secondary claims comprising the Project. These Sprott transactions were treated as a sale of mineral interest. The portion of the mineral interest sold was determined based on an analysis of discounted life-of-mine royalty payments relative to discounted future cash flows generated from the mine net of capital and operating costs, applied to the carrying value of the Bunker Hill Mine as of above funding dates, before consideration of the sale of mineral properties. This analysis utilized a discount rate of 15% and long-term metal prices of $1.20/lb, $0.95/lb and $27.29/oz for zinc, lead and silver respectively. 12 7. Lease Liability As of June 30, 2025, and December 31, 2024, The Company’s undiscounted lease obligations consisted of the following: Schedule of Lease Liability June 30, December 31, 2025 2024 Gross lease obligation – minimum lease payments 1 year $ 160,618 $ 200,755 2- 3 years 39,725 64,375 4-5 years - - Future interest expense on lease obligations ( 17,412 ) ( 13,480 ) Total lease liability 182,931 251,650 Current lease liability 164,028 189,368 Non-current lease liability 18,903 62,282 Total lease liability 182,931 251,650 Interest expense for the three and six months ended June 30, 2025, was $ 9,545 and $ 18,451 , respectively. Compared to the three and six months ended June 30, 2024, was $ 13,997 and $ 41,005 , respectively. 8. Environmental Protection Agency (“EPA”) Settlement Agreement and Water Treatment Liabilities Effective December 19, 2021, the Company entered into an amended Settlement Agreement between the Company, Idaho Department of Environmental Quality, U.S. Department of Justice, and the EPA (the “Amended Settlement”). Upon the effectiveness of the Amended Settlement, the Company would become fully compliant with its payment obligations to these parties. The Amended Settlement modified the payment schedule and payment terms for recovery of the historical environmental response costs. Pursuant to the terms of the Amended Settlement, upon purchase of the Bunker Hill Mine and the satisfaction of financial assurance commitments (as described below), the $ 19,000,000 of cost recovery liabilities were to be paid by the Company to the EPA on the following dates: Schedule of Amended Settlement Environmental Protection Agency Agreement Date Amount Within 30 days of Settlement Agreement $ 2,000,000 November 1, 2024 $ 3,000,000 November 1, 2025 $ 3,000,000 November 1, 2026 $ 3,000,000 November 1, 2027 $ 3,000,000 November 1, 2028 $ 3,000,000 November 1, 2029 $ 2,000,000 plus accrued interest In addition to the changes in payment terms and schedule, the Amended Settlement includes a commitment by the Company to secure financial assurance for the principle outstanding in the form of performance bonds or letters of credit deemed acceptable to the EPA. The financial assurance can be drawn on by the EPA in the event of non-performance by the Company of its payment obligations under the Amended Settlement (the “Financial Assurance”). The amount of the bonds will decrease over time as individual payments are made. In December 2024, the Company made the second payment under the 2021 Amended Settlement Agreement in the amount of $ 3,000,000 . As a result, the remainder of the payment obligation is $ 14,000,000 . As of December 31, 2024 and June 30, 2025, the Company had two payment bonds of $ 9,999,000 and $ 4,001,000 , in place to secure the EPA liability. As of June 30, 2025, the collateral for the payment bonds is comprised of a $ 2,975,000 letter of credits and a land pledged by third parties, with whom the Company has entered into a financing cooperation agreement (the “Cooperation Agreement”) that contemplates a monthly fee of $ 20,000 (payable in cash or common stock of the Company, at the Company’s election). As of December 31, 2024, the collateral for the payment bonds was comprised of two letters of credit totaling $ 4,475,000 in aggregate, as well as land pledged by third parties with whom the company has entered into a financing cooperation agreement (“Cooperation Agreement”) that contemplates a monthly fee of $ 20,000 (payable in cash or common shares of the Company, at the Company’s election). The letters of credit are secured by cash deposits under an agreement with a commercial bank, which comprise the $ 2,975,000 of restricted cash shown within current assets as of June 30, 2025, and $ 4,475,000 December 31, 2024. 13 The Company recorded accretion expense on the liability of $ 427,849 and $ 835,862 for the three and six months ended June 30, 2025, respectively, bringing the net liability to $ 9,385,091 (previously accrued interest of $ 156,743 ) as of June 30, 2025. The Company recorded accretion expense on the liability of $ 479,854 and $ 932,661 for the three and six months ended June 30, 2024, respectively. Water Treatment Charges – Idaho Department of Environmental Quality (“IDEQ”) Separate to the cost recovery liability under the EPA Settlement Agreement obligations above, the Company has agreed to pay ongoing water treatment charges. Water treatment charges incurred through December 31, 2021 were payable to the EPA, and charges thereafter became payable to the Idaho Department of Environmental Quality (“IDEQ”) following a change in management for the Central Treatment Plant (“CTP”) from the EPA to the IDEQ as of that date. The Company is currently charged a monthly amount of $ 100,000 by the IDEQ as instalments toward the cost of treating water at the CTP. Upon receipt of an invoice from the IDEQ for actual CTP costs incurred, a reconciliation is performed relative to payments made, with an additional amount due or refund received as applicable. The Company accrues $ 100,000 per month based on its estimate of the monthly cost of water treatment. As of June 30, 2025, a prepaid expense of $ nil (December 31, 2024: $ 100,000 ) represented the difference between the estimated cost of water treatment and net payments made by the Company to the IDEQ to date. Any balance is recognized on the condensed interim consolidated balance sheets as accounts receivable and prepaid expenses. 9. Promissory Notes Payable, Convertible Debentures, and Silver Loan $6,000,000 Convertible Debenture (CD1) CD1 bore interest at an annual rate of 7.5 %, payable in cash or shares at the Company’s option on principal of $ 6,000,000 . The CD1 is secured by a pledge of the Company’s properties and assets. In August 2024, the Company and Sprott agreed to amend the maturity date of CD1 from March 31, 2026, to March 31, 2028, and that CD1 would remain outstanding until the new maturity date unless the Company elects to exercise its option of early repayment . The Company determined that the amendments to the terms of the CD1 should not be treated as an extinguishment of the CD1 and have therefore been accounted for as a modification. The CD1 was convertible into Common Shares at a price of Canadian Dollars (“C$”) C$ 0.30 per Common Share, subject to stock exchange approval. In June 2025, the Company and Sprott agreed to amend the rate of interest of CD1 reducing it from 7.5 % to 5.0 % per annum, and the current conversion price, being the U.S. dollar equivalent of C$ 0.30 per Common Share, was reduced to $ 0.105 . The Company determined that the amendments to the terms of the CD1 should be treated as an extinguishment of the CD1. The new debt was bifurcated between host debt and the conversion option valued at $ 3,912,661 (net of transaction costs of $ 52,161 ) and $ 1,928,753 respectively, as of June 5, 2025. The debt and the conversion option were fair valued using a binomial lattice methodology based on a modified Cox-Ross-Rubenstein (“CRR”) approach. $15,000,000 Series 2 Convertible Debenture (CD2) CD2 bore interest at an annual rate of 10.5 %, payable in cash or shares at the Company’s option on principal of $ 15,000,000 . CD2 is secured by a pledge of the Company’s properties and assets. In August 2024, the Company and Sprott agreed to amend the maturity date of CD2 from March 31, 2026, to March 31, 2029 , and that CD2 would remain outstanding until the new maturity date unless the Company elects to exercise its option of early repayment. The Company determined that the amendments to the terms of the CD2 should not be treated as an extinguishment of the CD2 and have therefore been accounted for as a modification. In June 2025, the Company and Sprott agreed to amend the rate of interest of CD2 reducing it from 10.5 % to 5.0 % per annum, and the current conversion price, being the U.S. dollar equivalent of C$ 0.29 per Common Share, was reduced to $ 0.105 . The Company determined that the amendments to the terms of the CD2 should be treated as an extinguishment of the CD2. The new debt was bifurcated between host debt and the conversion option valued at $ 8,164,765 (net of transaction costs of $ 130,401 ) and $ 6,482,376 respectively, as of June 5, 2025. The debt and the conversion option were fair valued using a binomial lattice methodology based on a modified CRR approach. Prior to the extinguishment on June 5, 2025, the Company determined that in accordance with ASC 815 Derivatives and Hedging, each debenture will be valued and recorded as a single instrument, with the periodic changes to fair value accounted through earnings, profit and loss. 14 Consistent with the approach above, the following table summarizes the key valuation inputs as at applicable valuation dates: Schedule of Key Valuation Inputs Reference (1,2,3) Valuation date Maturity date Contractual Interest rate Stock price (US$) Expected equity volatility Credit spread Risk-free rate Risk- adjusted rate CD1 note 12-31-24 03-31-28 7.50 % 0.113 105 % 4.72 % 4.28 % 15.45 % CD2 note 12-31-24 03-31-29 10.50 % 0.113 105 % 5.03 % 4.34 % 17.89 % CD1 note 03-31-25 03-31-28 7.50 % 0.102 100 % 6.88 % 3.89 % 16.06 % CD2 note 03-31-25 03-31-29 10.50 % 0.102 100 % 7.06 % 3.93 % 18.16 % (1) The CD1 carried a Discount for Lack of Marketability (“DLOM”) of 5.0 % as of the issuance date. The CD2 carried a DLOM of 10.0 % as of the issuance date. (2) CD1 carries an instrument-specific spread of 7.23 %, CD2 carries an instrument-specific spread of 9.32 %. (3) The conversion price of the CD1, CD2 and CD3 are $ 0.105 as of June 30, 2025. The conversion price of the CD1 is $ 0.208 and CD2 is $ 0.202 as of December 31, 2024. The gain (loss) on changes in fair value of convertible debentures recognized on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) during the three and six months ended June 30, 2025, was $ 1,081,127 and $ 1,002,763 , respectively, and $ ( 498,263 ) and $ ( 655,495 ) for the three and six months ended June 30, 2024. The portion of changes in fair value that is attributable to changes in the Company’s credit risk is accounted for within other comprehensive income. During the three and six months ended June 30, 2025, the Company recognized $ 255,009 and $ 795,907 respectively, within other comprehensive income. Compared to $ 475,762 and $ 764,134 for the three and six months ended June 30, 2024. Interest expense on the pre extinguished CD1 from January 1, 2025 to June 5, 2025 was $ 193,459 . Interest expense on the pre extinguished CD2 from January 1, 2025 to June 5, 2025 was $ 684,041 . For the three and six months ended June 30, 2025, the Company recognized $ 824 , and $ 285,565 , respectively, loss on debt settlement on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) as a result of settling interest by issuance of shares. Compared to $ 133,232 and $ 203,325 for the three and six months ended June 30, 2024. For the three and six months ended June 30, 2025, the Company recognized $ 3,077,155 , and $ 3,077,155 , respectively, loss on debt settlement on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) as a result of extinguishment of CD1 and CD2. Compared to $ nil and $ nil for the three and six months ended June 30, 2024. The Company recorded accretion expense on host debt of CD1 of $ 37,911 from June 6, 2025 to June 30, 2025, bringing the net liability to $ 3,950,572 as of June 30, 2025. The Company recorded accretion expense on the host debt of CD2 of $ 79,002 from June 6, 2025 to June 30, 2025, bringing the net liability to $ 8,243,767 as of June 30, 2025. At June 30, 2025 interest of $ 444,167 ($ 510,411 at December 31, 2024) is included in interest payable on the condensed interim consolidated balance sheets. 15 $4,000,000 Series 3 Convertible Debenture (CD3) The Company closed the $ 4,000,000 CD3 on June 5, 2025 (note 15). CD3 bears interest at an annual rate of 5.0 %, payable in cash or shares at the Company’s option, and matures on June 5, 2030 . CD3 is secured by a pledge of the Company’s properties and assets and CD3 is convertible into Common Shares at a price of $0 .105 per Common Share, subject to the stock exchange approval. The new debt was bifurcated between host debt and the conversion option valued at $ 2,268,397 (net of transaction costs of $ 174,576 ) and $ 1,558,941 respectively, as of June 5, 2025. The debt and the conversion option were fair valued using a binomial lattice methodology based on a modified CRR approach. The Company recorded accretion expense on host debt of CD3 of $ 28,545 and $ 28,545 for the three and six months ended June 30, 2025 ($ nil and $ nil for the three and six months ended June 30, 2024), bringing the net liability to $ 2,296,941 as of June 30, 2025. At June 30, 2025, interest of $ nil ($ nil at December 31, 2024) is included in interest payable on the condensed interim consolidated balance sheets. The Company performs quarterly testing of the covenants in the CD1, CD2, CD3 and was in compliance with all such covenants as of June 30, 2025. The Stream On June 23, 2023, all conditions were met for the closing of the Stream, and $ 46,000,000 was advanced to the Company. The Stream was secured by the same security package that is in place with respect to the RCD, CD1, and CD2. The Stream was repayable by applying 10% of all payable metals sold until a minimum quantity of metal is delivered consisting of, individually, 63.5 million pounds of zinc, 40.4 million pounds of lead, and 1.2 million ounces of silver (subsequently amended, as described below). Thereafter, the Stream was repayable by applying 2% of payable metals sold. The delivery price of streamed metals was 20% of the applicable spot price. The Company incurred $ 740,956 of transactions costs directly related to the Stream which were capitalized against the initial recognition of the Stream. The Company determined that in accordance with ASC 815 derivatives and hedging, the Stream does not meet the criteria for treatment as a derivate instrument as the quantities of metal to be sold thereunder are not subject to a minimum quantity, and therefore a notional amount is not determinable. The Company has therefore determined that in accordance with ASC 470, the stream obligation should be treated as a liability based on the indexed debt rules thereunder. The initial recognition has been made at fair value based on cash received, net of transaction costs, and the discount rate calibrated so that the future cash flows associated with the Stream, using forward commodity prices, equal the cash received. The measurement of the stream obligation is accounted for at amortized cost with accretion at the discount rate. Subsequent changes to the expected cash flows associated with the Stream will result in the adjustment of the carrying value of the stream obligation using the same discount rate, with changes to the carrying value recognized in the condensed interim consolidated statements of income (loss) and comprehensive income (loss). The Company determined the effective interest rate of the Stream obligation to be 10.6 % and recorded accretion expense on the liability of $ 625,279 and $ 1,570,574 for the three and six months ended June 30, 2025 ($ 1,178,156 and $ 2,277,216 for the three and six months ended June 30, 2024) recognized in the consolidated statement of (loss) and comprehensive (loss), accretion expense on the liability of $ 407,721 and $ 971,426 for the three and six months ended June 30, 2025 ($ 226,840 and $ 485,784 for the three and six months ended June 30, 2024) capitalized into the process plant (note 5) on the condensed interim consolidated balance sheets and gain (loss) on revaluation of the liability of ($ 549,854 ) and $ 4,149,606 for the three and six months ended June 30, 2025, respectively (gain of $ 2,748,000 and $ 2,531,000 for the three and six months ended June 30, 2024, respectively). The revaluation is because of a change in projections of the key assumptions: The key assumptions used in the revaluation are production of 700,000,000 lbs of zinc, 385,000,000 lbs of lead, 8,700,000 oz of silver over 14 years and long-term commodity prices of 1.20 $/lb to 1.28 $/lb for zinc, 0.91 $/lb to 0.93 $/lb for lead, 27.76 $/oz to $31.96 $/oz for silver, and timing of production . On June 5, 2025, the existing metals purchase agreement (the “Metals Purchase Agreement”) dated June 23, 2023, by and among the Company, Silver Valley, and Sprott Streaming, pursuant to which Sprott Streaming previously advanced a $ 46,000,000 deposit to Silver Valley, was terminated and exchanged (the “Exchange Agreement”) for (i) 200,000,000 shares of the Company’s common stock; (ii) the CD3; and (iii) an additional 1.65 % life-of-mine gross revenue royalty (note 6) on primary and secondary claims comprising the Bunker Hill Mine. A gain on debt settlement $ 29,580,954 was recognized on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) for the three and six months ended June 30, 2025. 16 $15,000,000 Debt Facility On June 23, 2023, the Company closed a $ 21,000,000 debt facility with Sprott which was available for draw at the Company’s election for a period of 2 years. Any amounts drawn will bear interest of 10 % per annum, from the later of the Funding Date and June 30, 2027, to the date of repayment in full, at the rate of per cent 15.0 % per annum, which is payable annually in cash or capitalized at the Company’s election. The maturity date of any drawings under the Debt Facility will be June 30, 2030 . For every $ 5,000,000 or part thereof advanced under the Debt Facility, the Company will grant a new 0.5% life-of-mine gross revenue royalty, on the same terms as the Royalty, to a maximum of 2.0% on the Primary Claims and 1.4% on the Secondary Claims. The Company may buy back 50% of these royalties for $ 20,000,000 . On January 31, 2025, the Company drew $ 6,000,000 on the debt facility. On January 17, 2025, the Company drew $ 5,000,000 on the debt facility. The proceeds were bifurcated between host debt and the underlying sale of mineral interest to Sprott (note 6). On December 12, 2024, the Company drew $ 5,000,000 on the debt facility. The proceeds were bifurcated between host debt and the underlying sale of mineral interest to Sprott (note 6). On December 19, 2024, the Company drew $ 5,000,000 on the debt facility. The proceeds were bifurcated between host debt and the underlying sale of mineral interest to Sprott (note 6). On June 5, 2025, the Company repaid $ 6,000,000 of principal and $ 200,000 of interest owed to Sprott on the debt facility by issuing 57,142,857 and 1,904,762 Common Stock. For the six months ended June 30, 2025, and June 30, 2024, the Company recognized $ 155,731 and $ nil , respectively, gain on debt settlement on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) as a result of settling principal and interest by issuance of shares. On June 5, 2025, the Company and Sprott agreed to amend the Terms of the debt Facility, specifically the Company agreed to changes to the interest payment mechanism, specifically the removal of capitalized interest and the insertion of the ability to pay interest via shares in addition to a $ 2,000,000 , payable at maturity of the Debt Facility on June 30, 2030 . The Company determined that the amendments to the terms of the debt facility should not be treated as an extinguishment of the debt facility and have therefore been accounted for as a modification. The Company recorded accretion expense on the debt facility of $ 342,371 and $ 681,596 for the three and six months ended June 30, 2025 ($ nil and $ nil for the three and six months ended June 30, 2024), accretion expense on the liability of $ 334,440 and $ 578,975 for the three and six months ended June 30, 2025 ($ nil and $ nil for the three and six months ended June 30, 2024) capitalized into the process plant (note 5) on the condensed interim consolidated balance sheets bringing the net liability to $ 14,027,760 as of June 30, 2025. At June 30, 2025, interest of $ 786,111 ($ nil at December 31, 2024) is included in interest payable on the condensed interim consolidated balance sheets. The Company performs quarterly testing of the covenants in the Debt Facility and was in compliance with all such covenants as of June 30, 2025. Silver Loan On August 8, 2024, the Company entered into definitive agreements with Monetary Metals Bond III LLC, an entity established by Monetary Metals & Co., for a silver loan in an amount of U.S. dollars equal to up to 1.2 million ounces of silver, to be advanced in one or more tranches, in support of the re-start and ongoing development of the Bunker Hill Mine (the “Silver Loan”). In June 2025, the Company and Monetary Metals & Co. agreed to amend the rate of interest of the silver loan reducing it from 15 % to 13.5 % effective August 9, 2025. In consideration for Monetary Metals’ participation in the June 5, 2025 restructuring transactions of Bunker Hill and Silver Valley, Bunker Hill agreed to pay the following fees to Monetary Metals: a fee in the amount of $ 249,000 due and payable on August 8, 2025 and $ 249,000 due and payable on August 8, 2026. The Company determined that the amendments to the terms of the Silver Loan should not be treated as an extinguishment of the Silver Loan and have therefore been accounted for as a modification. The Company recognized a gain on modification of debt of $ 468,878 for the three and six months ended June 30, 2025 compared to $ nil for the three and six months ended June 30, 2024. 17 The Company determined that in accordance with ASC 815 Derivatives and Hedging, the Silver Loan is valued and recorded as a single instrument, with the periodic changes to fair value accounted through earnings, profit and loss. The fair value of the Silver Loan was determined using the Black-Derman-Toy (“BDT”) model. BDT models the evolution of interest rates over time using a binomial tree structure by capturing level of interest rates and volatility and estimates the value of the prepayment option by assessing how the borrower’s incentive to prepay changes with interest rate movements. The key inputs include: Schedule of Estimates Value of Prepayment Option by Assessing Interest Rate Movements Reference Valuation Date Maturity Date Contractual Interest Rate Interest Rate Volatility Risk-free rate Credit Spread Risk-adjusted rate Tranche 1, 2, 3, 4, & 5 Dec 31, 2024 Aug 8, 2027 15 % 26.5 % 4.23 % 4.53 % 16.54 % Tranche 1, 2, 3, 4, & 5 Mar 31, 2025 Aug 8, 2027 15 % 30.5 % 4.24 % 6.76 % 18.80 % Tranche 1, 2, 3, 4, & 5 June 30, 2025 Aug 8, 2027 13.5 % 30.5 % 4.24 % 11.83 % 18.80 % The resulting fair values of the Silver Loan at June 30, 2025, and December 31, 2024, and as of the issuance date, were as follows: Reference June 30, 2025 Dec 31, 2024 Silver Loan $ 35,775,913 $ 31,802,708 The loss on changes in fair value of Silver Loan recognized on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) during the three and six months ended June 30, 2025, was $ 2,961,015 and $ 9,029,947 respectively compared to $ nil and $ nil for the three months ended June 30, 2024. The portion of changes in fair value that is attributable to changes in the Company’s credit risk is accounted for within other comprehensive income during the three and six months ended June 30, 2025, was $ 3,096,220 , and $ 4,587,864 compared to $ nil and $ nil for the three months ended June 30, 2024. The Company performs quarterly testing of the covenant of the Silver Loan and was in compliance with all such covenants as of June 30, 2025. Teck Promissory Note On March 21, 2025, the Company closed an unsecured promissory note for an aggregate principal amount of up to $ 3,400,000 (the “Note”). The Note bore interest at 12 % per annum, with such interest capitalized and added to the principal amount outstanding under the Note monthly. The Note was available in multiple advances at the discretion of Teck and was paid on demand on June 6, 2025. On March 21, 2025, the Company received $ 763,000 in advance from Teck. On March 25, 2025, the Company received $ 2,325,000 advance from Teck. On May 21, 2025, the Note was amended to increase the aggregate principal amount to $ 4,400,000 , concurrently $ 1,000,000 was advanced from Teck under the Note. On June 6, 2025, the Company repaid principal and accrued interest on the unsecured Note. As of June 30, 2025, the principal and interest outstanding on the unsecured Note is $ nil ($ nil at December 31, 2024) on the condensed interim consolidated balance sheets. Interest expense for the three and six months ended June 30, 2025, was $ 80,064 and $ 87,160 respectively ($ nil and $ nil for the three and six months ended June 30, 2024). $10,000,000 Teck Standby Facility On June 5, 2025, the Company closed an uncommitted demand standby prepayment credit facility with Teck for $ 10,000,000 . The facility will bear interest at a rate of 13.5 % per annum until June 30, 2027, and a rate equal to 15.0 % per annum thereafter, calculated and capitalized quarterly. The facility will be available to the Company, until the earlier of (i) June 30, 2028, or (ii) the date on which the Bunker Hill project hits 90% of name plate capacity or on the date on which the Company is cash flow positive for a quarter, unless terminated earlier by Teck. As of December 31, 2024, and June 30, 2025, no advances have been made on the facility. The Company determined that no recognition is required on the financial statements as of June 30, 2025, as no amount has been drawn from the facility. 18 10. Capital Stock, Warrants, Stock Options and Restricted Share Units Authorized The total authorized capital is as follows: ● 2,500,000,000 ( 1,500,000,000 as of December 31, 2024) Common Shares with a par value of $ 0.000001 per Common Share; and ● 10,000,000 preferred shares with a par value of $ 0.000001 per preferred share. Issued and outstanding In January 2025, the Company issued 1,053,335 shares of common stock in connection with its election to satisfy financing cooperation fee relating to the Cooperation Agreement for the six months ended September 30, 2024. In January 2025, the Company issued 621,500 shares of common stock in connection with its election to satisfy financing cooperation fee relating to the Cooperation Agreement for the three months ended December 31, 2024. The Company recognized a loss on debt settlement of $ nil and $ 13,972 for the three and six months ended June 30, 2025 (compared to $ nil and $ nil for the three and six months ended June 30, 2024) in the on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) for satisfying the financing cooperation fee with shares. In January 2025, the Company issued 7,392,859 shares of common stock in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ending December 31, 2024. In January 2025, the Company issued 672,450 shares of common stock in connection with settlement of RSUs. In April 2025 the Company issued 187,500 shares of common stock in connection with its election to satisfy interest payments under the outstanding convertible debenture for the three months ending March 31, 2024. On June 5, 2025, we, closed the brokered private placement (the “Brokered Offering”) for aggregate cash consideration of $ 6,200,000 , which included participation by Sprott Streaming and Royalty Corp. (together with its affiliates, “Sprott Streaming”), and concurrent non-brokered private placement (the “Non-Brokered Offering” and together with the Brokered Offering, collectively, the “Equity Offerings”) with Teck Resources Limited (together with its affiliates, “Teck”) for $ 20,500,000 . As part of the equity offering the Company incurred $ 918,425 of financing costs recognized in additional paid in capital on the condensed balance sheets and $ 216,008 of financing costs on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) relating to the issuance of 126,107,872 warrants. As part of the Equity Offerings, we issued an aggregate of our 252,215,751 units (“Units”) at a price of C$ 0.15 per Unit (the “Offering Price”). Each Unit issued under the Equity Offerings consisted of one share of our common stock and one-half of one share of common stock purchase warrant (a “Warrant”). Each whole Warrant will be exercisable to acquire one additional share of our common stock (a “Warrant Share”) at a price of C$ 0.25 per Warrant Share for a period of three years following the date of issuance, subject to customary adjustments. In the Brokered Offering, 56,921,096 Units were sold at the Offering Price by a syndicate of agents led by BMO Capital Markets, CIBC Capital Markets and Red Cloud Securities Inc., as joint bookrunners, and including National Bank Financial Inc. (collectively, the “Agents”), of which Sprott Streaming acquired 10,000,000 Units (the “Sprott Subscription”). In the Non-Brokered Offering, Teck acquired 195,294,655 Units (the “Teck Units”) at the Offering Price. We intend to use the net proceeds of the Equity Offerings to support the construction, start-up and ramp-up of the Bunker Hill Mine. The Equity Offerings, including both the brokered and non-brokered components, were conducted on a private placement basis pursuant to applicable exemptions from the requirements of securities laws under National Instrument 45-106 – Prospectus Exemptions and the United States Securities Act of 1933, as amended (the “Securities Act”), in such other jurisdictions outside of Canada and the United States pursuant to applicable exemptions from the prospectus, registration or other similar requirements in such other jurisdictions. All securities issued pursuant to the Equity Offerings (i) are subject to a four month plus one day hold period in accordance with applicable Canadian securities laws and, if applicable, the policies of the TSX Venture Exchange (the “TSX-V”) and (ii) have not been registered under the Securities Act or any U.S. state securities laws and may not be offered or sold in the United States without registration under the Securities Act and all applicable state securities laws or compliance with requirements of an applicable exemption therefrom. 19 Sprott Stream Conversion On June 5, 2025, the existing metals purchase agreement (the “Metals Purchase Agreement”) dated June 23, 2023, by and among us, Silver Valley, and Sprott Streaming, pursuant to which Sprott Streaming previously advanced a $ 46,000,000 deposit to Silver Valley, was terminated and exchanged (the “Exchange Agreement”) for (i) 200,000,000 shares of our common stock; (ii) senior secured Series 3 convertible debentures in the aggregate principal amount of US$ 4 million and with a maturity date of June 5, 2030 (the “Series 3 CDs”); and (iii) an additional 1.65 % life-of-mine gross revenue royalty (the “New Royalty”) on primary and secondary claims comprising the Bunker Hill Mine. Sprott Streaming Debt Settlements On June 5, 2025, The Company and Silver Valley entered into the debt settlement agreements with Sprott Streaming (collectively, the “Sprott Debt Settlement Agreements”), pursuant to which an aggregate of 63,690,476 shares of our common stock were issued to Sprott Streaming at the Offering Price in full satisfaction of (i) $ 487,500 of unpaid interest under the secured convertible debentures held by Sprott Streaming, and (ii) $ 6,200,000 , consisting of the principal amount of US$ 6 million previously advanced to us under the Debt Facility, together with an aggregate of $ 200,000 of interest accrued thereon. Additional Debt Settlements The Company agreed to settle outstanding receivables and other amounts owing (including, where applicable, accrued and unpaid interest thereon) in aggregate amounts of approximately $ 80,000 , $ 3,072,254 and C$ 195,000 with certain creditors, contractors, and directors, respectively, of the Company’s or Silver Valley through the issuance of equity securities at the Offering Price. On June 5, 2025, concurrently with the closing of the Equity Offerings, the Company entered into debt settlement agreements (collectively, the “Debt Settlement Agreements”) with such creditors, contractors, and directors (collectively, the “Debt Settlements”) in order to preserve its cash for the potential restart and ongoing development of the Bunker Hill Mine. In connection with the Debt Settlements, the Company issued: (a) 761,904 Units to MineWater, for a financing cooperation fee; (b) 257,379 shares of our common stock to four of our directors for their services for the period beginning on March 1, 2025, and ending on April 30, 2025; and (c) 30,302,181 Units to certain other arm’s length creditors or contractors of the Company to settle certain other outstanding receivables and other amounts owing in the aggregate amount of approximately $ 3,072,254 . Equity Payment Silver Valley and C & E Tree Farm, L.L.C. (“C&E”) previously entered into an option agreement dated March 3, 2023 (the “Option Agreement”), pursuant to which Silver Valley has an option to purchase certain real property in Idaho, USA, from C&E upon making a cash payment of $ 3,129,500 , subject to adjustment for lease payments made pursuant to a commercial lease agreement between the parties. The Company wanted to satisfy a portion of the purchase price payable under the Option Agreement through the issuance of equity securities. Accordingly, on June 5, 2025, the Company, Silver Valley and C&E entered into an equity payment agreement (the “Equity Payment Agreement”), pursuant to which the Company issued 4,761,905 Units to C&E at a deemed price equal to the Offering Price to satisfy $ 500,000 of the purchase price payable under the Option Agreement. Each Unit issued pursuant to the Equity Payment Agreement consists of one shares of our common stock and one-half of one Warrant, with each whole Warrant exercisable for one additional Warrant Share at an exercise price of C$ 0.25 per Warrant Share for a period of three years following the date of issuance, being June 5, 2028. The payment is included in long term deposits on the June 30, 2025, interim consolidated balance sheets. The Company recognized a gain on debt settlement of $ 113,527 and $ 113,527 for the three and six months ended June 30, 2025 (compared to $ nil and $ nil for the three and six months ended June 30, 2024) in the on the condensed interim consolidated statements of income (loss) and comprehensive income (loss) for the additional debt settlements, and the equity payment. 20 In January 2024, the Company issued 7,392,859 shares of common stock in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ending December 31, 2023. In March 2024, the Company issued 2,546,436 shares of common stock in connection with settlement of RSUs. In April 2024, the Company issued 100,000 shares of common stock in connection with settlement of RSUs. In April 2024, the Company issued 6,398,439 shares of common stock in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ending March 31, 2024. The Company has accounted for the warrants in accordance with ASC Topic 815. The warrants are considered derivative instruments as they were issued in a currency other than the Company’s functional currency of the U.S. dollar. The estimated fair value of warrants accounted for as liabilities was determined on the date of issue and marked to market at each financial reporting period. The change in fair value of the warrant is recorded in the condensed interim consolidated statements of income (loss) and comprehensive income (loss) as a gain or loss and is estimated using the Binomial model. The fair value of the warrant liabilities related to the various tranches of warrants issued during the period were estimated using the Binomial model to determine the fair value using the following assumptions as at June 30, 2025 and December 31, 2024: Schedule of Fair Value of Warrant Liabilities Related to Various Tranches of Warrants Issued June 2025 warrants June 30, 2025 Grant Date Expected life 1071 days 1096 days Volatility 95 % 105 % Risk free interest rate 2.62 % 2.62 % Dividend yield 0 % 0 % Share price (C$) $ 0.12 $ 0.135 Fair value $ 4,935,982 $ 6,279,115 Change in derivative liability $ ( 1,343,133 ) January 2025 warrants June 30, 2025 Grant Date Expected life 769 days 943 days Volatility 80 % 105 % Risk free interest rate 2.59 % 2.85 % Dividend yield 0 % 0 % Share price (C$) $ 0.12 $ 0.165 Fair value $ 3,481 $ 7,116 Change in derivative liability $ ( 3,635 ) November 2024 warrants June 30, 2025 December 2024 Expected life 769 days 950 days Volatility 80 % 95 % Risk free interest rate 2.59 % 2.96 % Dividend yield 0 % 0 % Share price (C$) $ 0.12 $ 0.155 Fair value $ 19,431 $ 32,374 Change in derivative liability $ ( 12,943 ) October 2024 warrants June 30, 2025 December 2024 Expected life 769 days 950 days Volatility 80 % 95 % Risk free interest rate 2.59 % 2.96 % Dividend yield 0 % 0 % Share price (C$) $ 0.12 $ 0.155 Fair value $ 13,047 $ 25,881 Change in derivative liability $ ( 12,834 ) 21 August 2024 warrants June 30, 2025 December 2024 Expected life 769 days 950 days Volatility 80 % 95 % Risk free interest rate 2.59 % 2.96 % Dividend yield 0 % 0 % Share price (C$) $ 0.12 $ 0.155 Fair value $ 41,770 $ 82,857 Change in derivative liability $ ( 41,087 ) March 2023 warrants June 30, 2025 December 31, 2024 Expected life 270 days 451 days Volatility 24 % 24 % Risk free interest rate 2.59 % 2.96 % Dividend yield 0 % 0 % Share price (C$) $ 0.12 $ 0.155 Fair value $ 102,185 $ 915,046 Change in derivative liability $ ( 812,861 ) April 2022 special warrants issuance June 30, 2025 December 31, 2024 Expected life Expired 91 days Volatility N/A 70 % Risk free interest rate N/A 2.96 % Dividend yield N/A 0 % Share price (C$) $ N/A $ 0.155 Fair value $ - $ 1 Change in derivative liability $ ( 1 ) April 2022 non-brokered issuance June 30, 2025 December 31, 2024 Expected life Expired 91 days Volatility N/A 70 % Risk free interest rate N/A 2.96 % Dividend yield N/A 0 % Share price (C$) $ N/A $ 0.155 Fair value $ - $ 1 Change in derivative liability $ ( 1 ) June 2022 issuance June 30, 2025 December 31, 2024 Expected life Expired 91 days Volatility N/A 70 % Risk free interest rate N/A 2.96 % Dividend yield N/A 0 % Share price (C$) $ N/A $ 0.155 Fair value $ - $ 1 Change in derivative liability $ ( 1 ) 22 February 2021 issuance June 30, 2025 December 31, 2024 Expected life 224 days 405 days Volatility 75 % 70 % Risk free interest rate 2.59 % 2.96 % Dividend yield 0 % 0 % Share price (C$) $ 0.12 $ 0.155 Fair value $ 1 $ 44,465 Change in derivative liability $ ( 44,464 ) June 2019 issuance June 30, 2025 December 31, 2024 Expected life 184 days 365 days Volatility 85 % 70 % Risk free interest rate 2.59 % 2.96 % Dividend yield 0 % 0 % Share price (C$) $ 0.12 $ 0.155 Fair value $ 1 $ 9,724 Change in derivative liability $ ( 9,723 ) August 2019 issuance June 30, 2025 December 31, 2024 Expected life 184 days 365 days Volatility 85 % 70 % Risk free interest rate 2.59 % 2.96 % Dividend yield 0 % 0 % Share price (C$) $ 0.12 $ 0.155 Fair value $ 1 $ 14,945 Change in derivative liability $ ( 14,944 ) 23 Outstanding warrants at June 30, 2025 and December 31, 2024 were as follows: Schedule of Warrant Activity Weighted Weighted average average Number of exercise price grant date warrants (C$) value ($) Balance, December 31, 2023 145,061,976 $ 0.37 $ 0.09 Issued 2,157,384 0.15 0.07 Expired ( 40,538,969 ) 0.37 0.15 Balance, December 31, 2024 147,219,360 $ 0.37 $ 0.09 Balance, December 31, 2024 147,219,360 $ 0.37 $ 0.09 Issued 126,208,269 0.25 0.05 Expired ( 40,538,969 ) 0.37 0.15 Balance, June 30, 2025 232,888,660 $ 0.30 $ 0.06 At June 30, 2025, the following warrants were outstanding: Schedule of Warrants Outstanding Exercise Price Exercise Number of Number of warrants Expiry date price (C$) warrants exercisable December 31, 2025 0.59 32,895,200 32,895,200 February 9, 2026 0.60 17,112,500 17,112,500 February 16, 2026 0.60 2,881,580 2,881,580 March 27, 2026 0.15 51,633,727 51,633,727 August 8, 2027 0.16 1,680,591 1,680,591 August 8, 2027 0.15 100,397 100,397 August 8, 2027 0.12 476,793 476,793 June 5, 2028 0.25 126,107,872 126,107,872 232,888,660 232,888,660 Compensation options At June 30, 2025, and December 31, 2024 the following broker options were outstanding: Schedule of Compensation Options Weighted Number of average broker exercise price options (C$) Balance, December 31, 2023 4,301,150 $ 0.24 Expired – February 2024 ( 351,000 ) 0.50 Expired – April 2024 ( 1,879,892 ) 0.30 Balance, December 31, 2024 2,070,258 0.15 Balance, December 31, 2024 (i) 2,070,258 0.15 Balance, June 30, 2025 (i) 2,070,258 0.15 (i) The grant date fair value of the March 2023 Compensation Options was estimated at $ 111,971 using the Black-Scholes valuation model with the following underlying assumptions: 24 Schedule of Estimated Using Black-Scholes Valuation Model for Fair Value of Broker Options Grant Date Risk free interest rate Dividend yield Volatility Stock price Weighted average life March 2023 3.4 % 0 % 120 % C$ 0.11 3 years Schedule of Broker Exercise Price Exercise Number of Grant date Fair value Expiry date price (C$) broker options ($) March 27, 2026 (i) $ 0.15 2,070,057 $ 111,971 i) Exercisable into one March 2023 Unit. Stock options Outstanding stock options at June 30, 2025, and December 31, 2024 were as follows: Schedule of Stock Options Weighted average Number of exercise price stock options (C$) Balance, December 31, 2023 8,970,636 $ 0.52 Granted August 1, 2024 87,493 $ 0.16 Expired October 24, 2024 ( 1,575,000 ) $ 0.60 Expired October 31, 2024 ( 1,037,977 ) $ 0.34 Balance, December 31, 2024 6,445,152 $ 0.52 Balance, December 31, 2024 6,445,152 $ 0.52 Expired April 20, 2025 ( 5,957,659 ) $ 0.55 Balance, June 30, 2025 487,493 $ 0.15 The following table reflects the stock options issued and outstanding as of June 30, 2025: Schedule of Actual Stock Options Issued and Outstanding Number of remaining Number of options Exercise contractual options vested Grant date price (C$) life (years) outstanding (exercisable) fair value ($) 0.15 2.40 400,000 400,000 37,387 0.16 4.09 87,493 - 7,242 487,493 400,000 $ 44,629 The vesting of stock options during the three and six months ending June 30, 2025, resulted in stock based compensation expense of $ 1,805 and $ 3,591 , respectively ($ 6,423 and $ 31,516 for the three and six months ending June 30, 2024, respectively). Restricted Share Units Effective March 25, 2020, the Board of Directors approved a Restricted Share Unit (“RSU”) Plan to grant RSUs to its officers, directors, key employees and consultants. 25 Outstanding RSUs at June 30, 2025 and December 31, 2024 were as follows: Schedule of Restricted Share Units Weighted average grant date fair value Number of per share shares (C$) Unvested as at December 31, 2023 7,044,527 $ 0.24 Granted 9,720,403 $ 0.11 Vested ( 2,667,436 ) $ 0.23 Forfeited ( 71,000 ) $ 0.50 Unvested as at December 31, 2024 14,026,494 $ 0.15 Unvested as at December 31, 2024 14,026,494 $ 0.15 Vested ( 672,450 ) 0.10 Unvested as at June 30, 2025 13,354,044 $ 0.15 (i) On January 29, 2024, the Company granted 672,450 RSUs to the CFO of the Company, which vest on January 29, 2025. The vesting of these RSUs resulted in stock-based compensation of $ 3,552 and $ 3,552 , respectively, for the three and six months ended June 30, 2025, which is included in operating expenses condensed interim consolidated statements of income (loss) and comprehensive income (loss), compared to $12,432 and $21,311 for the three and six months ended June 30, 2024, respectively. (ii) On March 13, 2024, the Company granted 9,047,953 RSUs to certain executives and employees of the Company, which vest in one-third increments on March 13 of 2025, 2026 and 2027. The vesting of these RSUs resulted in stock-based compensation of $ 51,061 and $ 150,040 , respectively, for the three and six months ended June 30, 2024, which is included in operating expenses condensed interim consolidated statements of income (loss) and comprehensive income (loss) compared to $ 112,334 and $ 134,554 , for the three and six months ended June 30, 2024, respectively. The vesting of RSU’s during the three and six months ending June 30, 2025, resulted in stock based compensation expense of $ 78,850 and $ 261,626 respectively ($ 189,808 and $ 426,664 for the three and six months ending June 30, 2024, respectively). 11. Deferred Share Units Effective April 21, 2020, the Board of Directors approved a Deferred Share Unit (“DSU”) Plan to grant DSUs to its directors. The DSU Plan permits the eligible directors to defer receipt of all or a portion of their retainer or compensation until termination of their services and to receive such fees in the form of cash at that time. Upon vesting of the DSUs or termination of service as a director, the director will be able to redeem DSUs based upon the then market price of the Company’s Common Share on the date of redemption in exchange for cash. Outstanding DSUs at June 30, 2025 and December 31, 2024 were as follows: Schedule of Deferred Share Units Weighted average grant date fair value Number of per share shares (C$) Unvested as at December 31 2023 1,495,454 $ 0.90 Granted 2,865,363 $ 0.13 Vested ( 4,023,342 ) $ 0.41 Unvested as at December 31 2024 337,475 $ 0.16 Unvested as at December 31 2024, and June 30, 2025 337,475 $ 0.16 The vesting of DSU’s during the three and six months ended June 30, 2025, resulted in a recovery of stock based compensation expense of $ 94,621 and $ 145,407 , respectively. The vesting of DSU’s during the three and six months ending June 30, 2024, resulted in stock based compensation expense of $ 476,794 and $ 551,772 , respectively. The fair value of each DSU is $ 0.09 as of June 30, 2025, and $ 0.12 as of June 30, 2024. 26 12. Commitments and Contingencies EPA and IDEQ Obligations As stipulated in the agreement with the EPA and as described in Note 8, the Company is required to make two types of payments to the EPA and IDEQ, one for historical water treatment cost-recovery to the EPA, and the other for ongoing water treatment. Water treatment costs incurred through December 2021 are payable to the EPA, and water treatment costs incurred thereafter are payable to the IDEQ. The IDEQ (as done formerly by the EPA) invoices the Company on an annual basis for the actual water treatment costs, which may exceed the recognized estimated costs significantly. When the Company receives the water treatment invoices, it records any liability for actual costs over and above any estimates made and adjusts future estimates as required based on these actual invoices received. The Company is required to pay for the actual costs regardless of the periodic required estimated accruals and payments made each year. Crescent Legal Proceeding 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” or “Plaintiff”). 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 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, the court 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 is defending the claims on behalf of itself and Placer Mining Corp. pursuant to an indemnification granted by Company of Placer Mining Corp. granted pursuant to the sale and purchase agreement executed between the companies for the Mine on December 15, 2021. The lawsuit is currently in the discovery phase, in which information is gathered and exchanged. 13. Deferred Tax liability The Company incurred no income tax recovery or expense for the three and six months ended June 30, 2025 and incurred income tax recovery of $ 504,798 and $ 1,204,718 for the three and six months ended June 30, 2024. The Company’s effective income tax rate for the first three months of 2024 was 12.6 %. The effective tax rate during the first three months of 2024 rate differed from the statutory rate primarily due to the recognition of deferred tax assets available to offset the deferred tax liability associated with the Stream Obligation. The Company maintains a valuation allowance against net operating losses subject to Section 382 and other deferred tax assets. Current liabilities at June 30, 2025, and December 31, 2024, include an income tax payable of $ 950,000 and $ 1,050,000 , respectively. This relates to the proceeds of the Stream which were classified as income under the U.S. internal revenue code. The Company elected to defer the income, one year, to 2024, in which most of the income was offset by losses incurred in the current year and previous years. A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will likely ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. 27 14. Operating Expenses Schedule of Operating Expenses 2025 2024 2025 2024 Three Months Ended Six Months Ended June 30, June 30 2025 2024 2025 2024 Operating expenses General administration expenses $ 2,597,219 $ 3,342,235 $ 4,706,256 $ 6,187,472 Salaries, wages, and consulting fees 513,173 807,879 1,313,510 1,750,273 Total 3,110,392 4,150,114 6,019,766 7,937,745 15. Related party transactions The Company’s key management personnel have the authority and responsibility for planning, directing and controlling the activities of the Company and consists of the Company’s executive management team and management directors. Schedule of Related Party Transactions Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 Consulting fees & wages $ 300,842 $ 353,417 $ 557,717 $ 827,610 At June 30, 2025 and June 30, 2024, $ 98,545 and $ 88,796 respectively is owed to key management personnel with all amounts included in accounts payable and accrued liabilities due to cash preservation efforts. Sprott Transactions In January 2025, the Company drew $ 11,000,000 on the Sprott debt facility. As consideration for Sprott advancing the debt facility the Company granted Sprott a royalty for 1.0% of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company’s 2021 ground geophysical survey and a 0.70% rate will apply to claims outside of these areas. In January 2025, the Company issued 7,119,049 shares of common stock to Sprott in connection with its election to satisfy interest payments under the outstanding convertible debentures owned by Sprott for the three months ended December 31, 2024. On June 5, 2025, the following transactions occurred: Equity Raise Participation Sprott Streaming acquired 10,000,000 Units in the Brokered Offering. at a price of C$ 0.15 per Unit (the “Offering Price”). Each Unit issued under the Equity Offerings consisted of one share of our common stock and one-half of one share of common stock purchase warrant (a “Warrant”). Each whole Warrant will be exercisable to acquire one additional share of our common stock (a “Warrant Share”) at a price of C$ 0.25 per Warrant Share for a period of three years following the date of issuance, subject to customary adjustments. Stream Conversion On June 5, 2025, the existing metals purchase agreement (the “Metals Purchase Agreement”) dated June 23, 2023, by and among us, Silver Valley, and Sprott Streaming, pursuant to which Sprott Streaming previously advanced a $ 46,000,000 deposit to Silver Valley, was terminated and exchanged (the “Exchange Agreement”) for (i) 200,000,000 shares of our common stock; (ii) senior secured Series 3 convertible debentures in the aggregate principal amount of $ 4,000,000 and with a maturity date of June 5, 2030 (the “Series 3 CDs”); and (iii) an additional 1.65 % life-of-mine gross revenue royalty (the “New Royalty”) on primary and secondary claims comprising the Bunker Hill Mine. 28 Sprott Streaming Debt Settlements On June 5, 2025, we and Silver Valley entered into the debt settlement agreements with Sprott Streaming (collectively, the “Sprott Debt Settlement Agreements”), pursuant to which an aggregate of 63,690,476 shares of our common stock were issued to Sprott Streaming at the Offering Price in full satisfaction of (i) $ 487,500 of unpaid interest under the secured convertible debentures held by Sprott Streaming, and (ii) $ 6,200,000 , consisting of the principal amount of $ 6,000,000 previously advanced to us under the Debt Facility, together with an aggregate of $ 200,000 of interest accrued thereon. Teck Transactions On March 21, 2025, the Company closed an unsecured promissory note for an aggregate principal amount of up to $ 3,400,000 (the “Note”). The Note interest rate was set at 12 % per annum, with such interest being capitalized and added to the principal amount outstanding under the Note monthly. The Note was available in multiple advances at the discretion of Teck and is payable on demand from Teck. On March 21, 2025, the Company received $ 763,000 in advance from Teck. On March 25, 2025, the Company received $ 2,325,000 advance from Teck. On April 7, 2025, the Company received $ 312,000 advance from Teck. On May 21, 2025, the Note was amended to increase the aggregate principal amount to $ 4,400,000 , concurrently $ 1,000,000 was advanced from Teck under the Note. On June 6, 2025, the Company repaid principal and accrued interest on the full balance of the unsecured Note. On June 5, 2025, the Company closed a non-brokered private placement (the “Non-Brokered Offering”) with Teck Resources Limited for 195,294,655 Units at a price of US$ 0.105 per Unit for aggregate gross proceeds to the Corporation of US$ 20,505,938.77 . Each Unit issued under the Equity Offerings consisted of one share of our common stock and one-half of one share of common stock purchase warrant (a “Warrant”). Each whole Warrant will be exercisable to acquire one additional share of our common stock (a “Warrant Share”) at a price of C$ 0.25 per Warrant Share for a period of three years following the date of issuance, subject to customary adjustments. 16. Geographic and Segment Information The Company has one reportable operating segment. The Company’s primary focus is the development and restart of our 100 % owned Bunker Hill Mine in Kellogg, Idaho, U.S. The Company reported no revenues during the three and six months ended June 30, 2025, and 2024. 17. Subsequent Events Share Issuance On July 9, 2025, the Company issued 15,378,473 shares of common stock in connection with its election to satisfy interest payments under the outstanding convertible debentures for the three months ended June 30, 2025 and the debt facility for the six months ended June 30, 2025. 29