SOLITARIO RESOURCES CORP. 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with the information contained in the consolidated financial statements of Solitario for the years ended December 31, 2024 and 2023, and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Solitario’s 2024 Annual Report. Solitario’s financial condition and results of operations as of and through June 30, 2025 are not necessarily indicative of what may be expected in future periods. Unless otherwise indicated, all references to dollars are to U.S. dollars. (a) Business Overview and Summary We are an exploration stage company as defined by rules issued by the SEC, with a focus on the acquisition of precious and base metal properties with exploration potential and the development or purchase of royalty interests. Currently our primary focus is the acquisition and exploration of precious metals, zinc and other base metal exploration mineral properties. However, we continue to evaluate other mineral properties for acquisition, and we hold a portfolio of mineral exploration properties and assets for future sale, joint venture or on which to create a royalty prior to the establishment of proven and probable reserves. Although our mineral properties may be developed in the future by us, through a joint venture or by a third party, we have never developed a mineral property. In addition to focusing on our current mineral exploration properties, from time-to-time we also evaluate potential strategic transactions for the acquisition of new precious and base metal properties and assets with exploration potential. Our current geographic focus for the evaluation of potential mineral property assets is in North and South America; however, we have conducted property evaluations for potential acquisition in other parts of the world. At June 30, 2025, we consider our Golden Crest Project in South Dakota, our carried interest in the Florida Canyon Project in Peru, and our interest in the Lik Project in Alaska to be our core mineral property assets. In addition, we own the Cat Creek Project in Colorado, which has not been explored to the degree of any of our three core assets, described above. We are conducting exploration activities in the United States on our own at the Golden Crest and Cat Creek Projects and through joint ventures operated by our partners in Peru at the Florida Canyon Project and in Alaska at the Lik Project. From time to time we also conduct potential acquisition evaluations in other countries located in South and North America. We have recorded revenue in the past from the sale of mineral properties, however revenues and / or proceeds from the sale or joint venture of properties or assets, although generally significant when they have occurred in the past, have not been a consistent source of revenue and would only occur in the future, if at all, on an infrequent basis. We have reduced our exposure to the costs of our exploration activities in the past through the use of joint ventures. Although we anticipate that the use of joint ventures to fund some of our exploration activities will continue for the foreseeable future, we can provide no assurance that these or other sources of capital will be available in sufficient amounts to meet our needs, if at all. As of June 30, 2025, we have balances of cash and short-term investments that we anticipate using, in part, to (i) fund costs and activities intended to further the exploration of our Lik Project, Florida Canyon Project, Golden Crest Project and Cat Creek Project; (ii) conduct reconnaissance exploration and (iii) potentially acquire additional mineral property assets. The fluctuations in precious metal and other commodity prices contribute to a challenging environment for mineral exploration and development, which has created opportunities as well as challenges for the potential acquisition of advanced mineral exploration projects or other related assets at potentially attractive terms. The extent to which our business, including our exploration and other activities and the market for our securities, may be impacted by public health threats, rising geopolitical tension, general economic uncertainty and market volatility will depend on future developments, which are highly uncertain and cannot be predicted at this time. Please see Part I, Item 1A, “Risk Factors,” in our 2024 Annual Report. 15 Table of Contents (b) Results of Operations Comparison of the three months ended June 30, 2025 to the three months ended June 30, 2024 We had a net loss of $943,000 or $0.01 per basic and diluted share for the three months ended June 30, 2025 compared to a net loss of $762,000 or $0.01 per basic and diluted share for the three months ended June 30, 2024. As explained in more detail below, the primary reasons for the increase in our net loss in the three months ended June 30, 2025 compared to the net loss during the three months ended June 30, 2024 were (i) an increase in exploration expense to $671,000 during the three months ended June 30, 2025 compared to exploration expense of $487,000 during the three months ended June 30, 2024; (ii) a decrease in interest and dividend income to $52,000 during the three months ended June 30, 2025 compared to interest and dividend income of $106,000 during the three months ended June 30, 2024; (iii) an increase in the loss on derivative instruments to $130,000 during the three months ended June 30, 2025 compared to a loss on derivative instruments of $21,000 during the three months ended June 30, 2024; and (iv) an unrealized loss on marketable equity securities of $1,150,000 during the three months ended June 30, 2025 compared to an unrealized gain on marketable equity securities of $248,000 during the three months ended June 30, 2024. Partially offsetting these increases in net loss were(i) a decrease in general and administrative expense to $388,000 during the three months ended June 30, 2025 compared to general and administrative expense of $656,000 during the three months ended June 30, 2024; and (ii) a gain on sale of marketable equity securities of $1,351,000 during the three months ended June 30, 2025 compared to a gain on sale of marketable equity securities of $54,000 during the three months ended June 30, 2024. Each of the major components of these items is discussed in more detail below. Our net exploration expense increased to $671,000 during the three months ended June 30, 2025 compared to exploration expense of $487,000 during the three months ended June 30, 2024 primarily as a result of (i) an increase in exploration expense at our Golden Crest Project to $635,000 during the three months ended June 30, 2025 compared to $450,000 during the three months ended June 30, 2024 as a result of the commencement of drilling at Golden Crest during the second quarter of 2025, with no drilling in the second quarter of 2024; and (ii) an increase in exploration expense at our Lik Project in Alaska during the three months ended June 30, 2025 of $19,000 compared to exploration expenditures of $16,000 during the three months ended June 30, 2024. Drilling commenced in June 2025 at our Golden Crest Project which resulted in approximately $347,000 in drilling expenditures in the three months ended June 30, 2025 with no similar amount during the three months ended June 30, 2024. Partially offsetting these increases in exploration expense were reductions of the limited work at our Cat Creek Project and reconnaissance work during both the three months ended June 30, 2025 and 2024. We have budgeted approximately $3,910,000 for the full-year exploration expenditure for 2025, which includes approximately $1,911,000 for drilling at the Golden Crest Project. We expect our full-year exploration expenditures for 2025 to be comparable to our full-year exploration expenditures for 2024. Exploration expense (in thousands) by project consisted of the following: Three months ended June 30, Six months ended June 30, Project Name 2025 2024 2025 2024 Golden Crest $ 635 $ 450 $ 851 $ 785 Lik 19 16 30 24 Cat Creek 10 13 15 13 Reconnaissance 7 8 14 19 Total exploration expense $ 671 $ 487 $ 910 $ 841 General and administrative costs, excluding stock option compensation costs, discussed below, were $263,000 during the three months ended June 30, 2025 compared to $301,000 during the three months ended June 30, 2024. The major components of our general and administrative costs were (i) salaries and benefit expense of $79,000 during the three months ended June 30, 2025 compared to salary and benefit costs of $83,000 during the three months ended June 30, 2024 as a result of a reduction in administrative staff costs; (ii) legal and accounting expenditures of $61,000 in the three months ended June 30, 2025 compared to $60,000 in the three months ended June 30, 2024; (iii) office rent and expenses of $17,000 during the three months ended June 30, 2025 compared to $33,000 during the three months ended June 30, 2024; and (iv) travel and shareholder relation costs of $106,000 during the three months ended June 30, 2025 compared to $125,000 during the three months ended June 30, 2024. We anticipate the full-year general and administrative costs will be comparable for 2025 and 2024. 16 Table of Contents We recorded $125,000 of stock option compensation expense for the amortization of unvested grant date fair value with a credit to additional paid-in-capital during the three months ended June 30, 2025 compared to $356,000 of stock option compensation expense during the three months ended June 30, 2024. These non-cash charges related to the expense for vesting on stock options outstanding during the three months ended June 30, 2025 and 2024. The primary reason for the decrease in stock option compensation expense during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was as a result of the grant of a total of 2,125,000 options in the second quarter of 2024, which included amortization of 25%, or $280,000 on the grant date of the total grant date fair value of $1,120,000, with no similar grant date amortization during the three months ended June 30, 2025. The remaining expense related to the amortization of grant date fair values of outstanding unvested options for the three months ended June 30, 2025 and 2024 was comparable. See Note 10, “Employee Stock Compensation Plans,” above, for additional information on our stock option expense. We recorded a non-cash unrealized loss on marketable equity securities of $1,150,000 during the three months ended June 30, 2025 compared to an unrealized gain on marketable equity securities of $248,000 during the three months ended June 30, 2024. The non-cash unrealized loss during the three months ended June 30, 2025 was primarily related to (i) the transfer $915,000 of unrealized gain on our holdings of Kinross common stock to realized gain upon the sale of shares of Kinross during the three months ended June 30, 2025; (ii) the transfer of $33,000 of unrealized gain on our holdings of Vox Royalty common stock upon the sale of the shares of Vox Royalty during the three months ended June 30, 2025; and (iii) a decrease of $263,000 in the value of the holdings of our Kinross shares during the three months ended June 30, 2025 to the date of sale of the shares. Partially offsetting this non-cash unrealized loss on marketable equity securities during the three months ended June 30, 2025 was (i) an increase of $6,000 on our Vox Royalty common shares sold during the three months ended June 30, 2025 to the date of sale; (ii) an increase of $31,000 in the value of our holdings of Vendetta common stock during the three months ended June 30, 2025; and (iii) an increase of $24,000 in the value of our remaining holdings of Vox Royalty common stock during the three months ended June 30, 2025. The non-cash unrealized gain on marketable equity securities of $248,000 during the three months ended June 30, 2024 was as a result of an increase in the fair value of our then held 100,000 shares of Kinross common stock of $219,000, based on quoted market prices; and (ii) an increase in the fair value of our 134,055 shares of Vox Royalty common stock of $91,000 based on quoted market prices. These increases were partially offset by a decrease in the fair value of our 7,750,000 shares of Vendetta Mining Corp. (“Vendetta”) common stock of $30,000 based on quoted market prices. In addition, during the three months ended June 30, 2024, we transferred $32,000 of prior unrecognized gain on the sale of our 100,000 shares of Highlander common stock to realized gain on the sale of marketable equity securities. During the three and six months ended June 30, 2025, we sold our holdings of 100,000 shares of Kinross common stock for gross proceeds of $1,401,000, which was netted by the settlement of $403,000 to close out the $10.00 Kinross covered call covering all 100,000 shares of Kinross, which had a May 16, 2025 settlement date, resulting in net cash proceeds of $998,000, after fees and commissions. We recorded a gain on sale of the Kinross shares of $1,319,000 on the date of sale. Also, during the three and six months ended June 30, 2025, we sold 34,055 of our Vox Royalty shares for proceeds of $106,000 and recorded a gain on sale of the Vox Royalty shares of $32,000 on the date of sale. During the three months ended June 30, 2024, we sold our 100,000 Highlander common shares for proceeds of $54,000 and recorded a gain on sale of marketable equity securities of $54,000. See Note 3 “Marketable Equity Securities” to the condensed consolidated financial statements. We recorded interest and dividend income of $52,000 during the three months ended June 30, 2025 compared to interest income of $106,000 during the three months ended June 30, 2024. This decrease was primarily due to a decrease in our funds held in our money market account during the three months ended June 30, 2025 compared to the funds held in our money market account during the three months ended June 30, 2024. Our dividend income potion of interest and dividend income during in the three and six months ended June 30, 2025 of $2,000 and $5,000, respectively, was comparable to the same periods of 2024. During the three months ended June 30, 2025, we recorded a non-cash loss on derivative instruments of $130,000 compared to a non-cash loss on derivative instruments of $21,000 during the three months ended June 30, 2024 related to the Kinross calls we held during the three months ended June 30, 2025 and 2024. The Kinross calls were settled upon the sale of our holdings of Kinross common stock, discussed above. See Note 7, “Derivative Instruments,” above for a discussion of our Kinross calls. 17 Table of Contents We regularly perform evaluations of our mineral property assets to assess the recoverability of our investments in these assets. All long-lived assets are reviewed for impairment whenever events or circumstances change which indicate the carrying amount of an asset may not be recoverable utilizing guidelines based upon future net cash flows from the asset as well as our estimates of the geological potential of an early-stage mineral property and its related value for future sale, joint venture or development by us or others. During the three and six months ended June 30, 2025 and 2024, we recorded no property impairments. We recorded no income tax expense or benefit during the three and six months ended June 30, 2025 or 2024 as we provide a valuation allowance for the tax benefit arising out of our net operating losses for all periods presented. As a result of our administrative expenses and exploration activities, we anticipate we will not have currently payable income taxes during 2025. In addition to the valuation allowance discussed above, we provide a valuation allowance for our foreign net operating losses, which are primarily related to our exploration activities in Peru. We anticipate we will continue to provide a valuation allowance for these net operating losses until we are in a net tax liability position with regards to those countries where we operate or until it is more likely than not that we will be able to realize those net operating losses in the future. Comparison of the six months ended June 30, 2025 to the six months ended June 30, 2024 We had a net loss of $1,454,000 or $0.02 per basic and diluted share for the six months ended June 30, 2025 compared to a net loss of $1,492,000 or $0.02 per basic and diluted share for the six months ended June 30, 2024. As explained in more detail below, the primary reasons for the decrease in our net loss were (i) a decrease in general and administrative expense to $878,000 during the six months ended June 30, 2025 compared to general and administrative expense of $1,128,000 during the six months ended June 30, 2024; and (ii) a realized gain on sale of marketable equity securities of $1,351,000 on the sale of marketable equity securities during the six months ended June 30, 2025, compared with a gain on sale of marketable equity securities of $54,000 during the six months ended June 30, 2024. Partially offsetting these decreases in the net loss during the six months ended June 30, 2025 compared to the net loss during the six months ended June 30, 2024 were (i) ) an increase in exploration expense to $910,000 during the six months ended June 30, 2025 compared to exploration expense of $841,000 during the six months ended June 30, 2024; (ii) an increase in the a loss on derivative instruments to $336,000 during the six months ended June 30, 2025 compared to a loss on derivative instruments of $21,000 during the six months ended June 30, 2024; (iii) a decrease in interest and dividend income to $98,000 during the six months ended June 30, 2025 compared to interest and dividend income of $201,000 during the six months ended June 30, 2024 and (iv) an unrealized loss of $765,000 on marketable equity securities during the six months ended June 30, 2025 compared to an unrealized gain on marketable equity securities of $256,000 during the six months ended June 30, 2024. The significant changes for these items are discussed in more detail below. Our net exploration expense increased to $910,000 during the six months ended June 30, 2025 compared to $841,000 during the six months ended June 30, 2024. The primary reasons for the increase were (i) exploration expenditures at our Golden Crest Project increased to $851,000 during the six months ended June 30, 2025 compared to $785,000 during the six months ended June 30, 2024 as we started a drilling program in June of 2025, with drilling and related expenditures of approximately $347,000 through June 30, 2025, with no similar drilling costs during 2024. These increases in costs at our Golden Crest Project were partially offset by a reduction in permitting activities at the Golden Crest Project during the six months ended June 30, 2025 compared to the six months ended June 30, 2024; (ii) an increase in our exploration expenditures at our Lik Project in Alaska to $30,000 during the six months ended June 30, 2025 compared to $24,000 during the six months ended June 30, 2024 and (iii) an increase in expenditures at our Cat Creek Project during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Partially offsetting these increases in exploration expenditures at the Golden Crest and Lik Projects were reductions in the expenditures related to our reconnaissance activities during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, as detailed above. We anticipate a significant increase in exploration expenditures at our Golden Crest Project in the second half of 2025 primarily due to planned drilling on the project as discussed above. General and administrative costs, excluding stock option compensation costs discussed below, were $627,000 during the six months ended June 30, 2025 compared to $713,000 during the six months ended June 30, 2024. The major components of the costs were (i) salary and benefit expense during the six months ended June 30, 2025 of $197,000 compared to salary and benefit expense of $214,000 during the six months ended June 30, 2024 as a result of a reduction in staff during the six months ended June 30, 2025 compared to 2024; (ii) legal and accounting expenditures of $114,000 during the six months ended June 30, 2025, compared to $129,000 during the six months ended June 30, 2024; (iii) office and other costs of $46,000 during the six months ended June 30, 2025 compared to $57,000 during the six months ended June 30, 2024; and (iv) travel and shareholder relation costs of $270,000 during the six months ended June 30, 2025 compared to $313,000 during the six months ended June 30, 2024. 18 Table of Contents During the six months ended June 30, 2025 and 2024, Solitario recorded $251,000 and $415,000, respectively, of stock option expense for the amortization of unvested grant date fair value with a credit to additional paid-in capital. The increase during the six months ended June 30, 2024 was primarily related to the grant of options for a total of 2,125,000 shares of our common stock during June of 2024, which resulted in the amortization of $280,000 of grant date fair value on the date of grant of those options, as discussed above. We recorded an unrealized loss on marketable equity securities of $765,000 during the six months ended June 30, 2025 compared to an unrealized gain on marketable equity securities of $256,000 during the six months ended June 30, 2024. The non-cash unrealized gain during the six months ended June 30, 2025 was primarily related to (i) the transfer of $915,000 of unrealized gain on our holdings of Kinross common stock to realized gain upon the sale of shares of Kinross during the three months ended June 30, 2025; and (ii) the transfer of $33,000 of unrealized gain on our holdings of Vox Royalty common stock upon the sale of the shares of Vox Royalty during the three months ended June 30, 2025. These unrealized increases in the value of our marketable equity securities were partially offset by (i) an increase in the value of our holdings of Kinross through the date of sale of $71,000; (ii) an increase in the value of our holdings of Vendetta common stock of $4,000 based on quoted market prices; and (iii) an increase in the value of our Vox Royalty common stock sold of $6,000 through the date of sale for the Vox Royalty shares sold and an increase in the value of remaining holdings of Vox Royalty common stock for the six months ended June 30, 2025 of $102,000. The non-cash unrealized gain during the six months ended June 30, 2024 was primarily related to (i) an increase in the fair value of our holdings of 100,000 shares of Kinross common stock at June 30, 2024 of $227,000 based on quoted market prices; (ii) an increase in the fair value of our holdings of 134,055 shares of Vox Royalty common stock of $95,000 based on quoted market prices; and (iii) an increase of $21,000 in the fair value of our holdings of 100,000 shares of Highlander common stock to the date of the sale of our holdings of the Highlander shares. These unrealized increases in the value of our marketable equity securities during the six months ended June 30, 2024 were partially offset by (i) a decrease in the value of our holdings of Vendetta common stock of $33,000 based on quoted market prices; and (ii) the transfer of $54,000 of unrealized gain to realized gain on the sale of our 100,000 Highlander common shares upon the sale of those shares during the six months ended June 30, 2024. We recorded interest and dividend income of $98,000 during the six months ended June 30, 2025 compared to interest and dividend income of $201,000 during the six months ended June 30, 2024. The decrease in interest income was primarily related to a decrease in our average outstanding balance of money market holdings during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. We anticipate interest income will increase during the remainder of 2025, as a result of the completion of private placements of our common stock during the three months ended June 30, 2025 for net proceeds of $4,411,000. However, we anticipate we will utilize the funds in the money market account to fund our exploration and general and administrative expenditures, which will mitigate the future interest income during the remainder of 2025 and the sale of our holdings of Kinross will eliminate our dividend income for the remainder of 2025. See “Liquidity and Capital Resources” below for further discussion of our cash and short-term investment balances. During the six months ended June 30, 2025, we recorded a non-cash loss on derivative instruments of $336,000 related to the Kinross calls held during the six months ended June 30, 2025 as a result of the increase in the underlying value of our holdings of Kinross common stock, discussed above. These calls were settled during the six months ended June 30, 2025 upon the sale of our holdings of Kinross. During the six months ended June 30, 2024, we recorded a non-cash loss on derivative instruments of $21,000 related to the Kinross calls as a result of an increase in the value of the underlying Kinross common stock, discussed above. (c) Liquidity and Capital Resources Cash and Short-term Investments As of June 30, 2025, we have $9,018,000 in cash and short-term investments. Our short-term investment is comprised of $8,823,000 invested in a money market account with a brokerage firm. We anticipate we will roll over that portion of our short-term investments not used for exploration expenditures, operating costs or mineral property acquisitions as they become due during the remainder of 2025. We intend to utilize a portion of our cash and short-term investments in our exploration activities and the potential acquisition of mineral assets over the next several years. 19 Table of Contents Investment in Marketable Equity Securities Our marketable equity securities are carried at fair value, which is based upon market quotes of the underlying securities. At June 30, 2025, we owned 7,750,000 shares of Vendetta common stock, and 100,000 shares of Vox Royalty common stock. At June 30, 2025, the Vendetta shares are recorded at their fair value of $85,000, and the Vox Royalty shares are recorded at their fair value of $316,000. We sold our holdings of 100,000 shares of Kinross common stock for net proceeds of $998,000 during the six months ended June 30, 2025, and sold 34,055 shares of Vox Royalty common stock for net proceeds of $106,000, each discussed above. During the six months ended June 30, 2024 we sold all of our holdings of Highlander for proceeds of $54,000. We anticipate we may sell some portion of our remaining holdings of marketable equity securities during the remainder of 2025 depending on cash needs and market conditions. Working Capital We had working capital of $9,158,000 at June 30, 2025 compared to working capital of $5,624,000 at December 31, 2024. The increase was largely attributable to the completion of the private placements of our common stock during June 2025 described above. Our working capital at June 30, 2025 consists primarily of our cash and cash equivalents, our short-term investments, discussed above, our investment in marketable equity securities of $401,000, and other current assets of $229,000, less our accounts payable of $461,000 and other current liabilities of $29,000. As of June 30, 2025, our cash balances along with our short-term investments and marketable equity securities are adequate to fund our expected expenditures over the next year. The nature of the mineral exploration business requires significant sources of capital to fund exploration, development and operation of mining projects. We will need additional capital if we decide to develop or operate any of our current exploration projects or any projects or assets we may acquire. We anticipate we would finance any such development through the use of our cash reserves, short-term investments, joint ventures, issuance of debt or equity, or the sale of our interests in other exploration projects or assets. Stock-Based Compensation Plans As of June 30, 2025 and December 31, 2024, there were options outstanding from the 2013 Plan to acquire an aggregate of 2,145,000 and 3,173,500 shares, respectively, of Solitario common stock, with exercise prices between $0.69 per share and $0.60 per share at June 30, 2025. As of June 30, 2025 and December 31, 2024 there were options outstanding from the 2023 Plan to acquire 2,175,000 and 2,175,000 shares, respectively, of Solitario common stock with exercise prices between $0.51 per share and $0.85 per share. During the three and six months ended June 30, 2025, options for 250,000 and 1,028,500 shares, respectively, of Solitario common stock were exercised from the 2013 Plan with an exercise price of $0.20 per share for proceeds of $50,000 and $206,000. During the six months ended June 30, 2024, options for 50,000 shares of Solitario common stock were exercised from the 2013 Plan with an exercise price of $0.28 per share for proceeds of $14,000. There were no options exercised during the three months ended June 30, 2024. We do not anticipate the exercise of any additional options during the remainder of 2025. (d) Cash Flows Net cash used in operations during the six months ended June 30, 2025 decreased to $1,401,000 compared to $1,570,000 of net cash used in operations for the six months ended June 30, 2024 primarily as a result of (i) decrease in general and administrative expense during the six months ended June 30, 2025 to $$878,000 compared to $1,128,000 during the six months ended June 30, 2024; and (ii) a reduction in the use of cash for prepaid expenses and other current assets to $163,000 for the six months ended June 30, 2025 compared to the use of cash of $364,000 for prepaid expenses and other current assets during the six months ended June 30, 2024. Partially offsetting these decreases were (i) an increase in exploration expenses to $910,000 during the six months ended June 30, 2025 compared to exploration expenses of $841,000 during the six months ended June 30, 2024; (ii) a reduction in interest and dividend income to $98,000 during the six months ended June 30, 2025 compared to interest income of $201,000 during the six months ended June 30, 2024; and (iii) a provision of cash from an increase in accounts payable and other current liabilities during the six months ended June 30, 2025 of $181,000 compared to a provision of cash for an increase in accounts payable and other current liabilities of $126,000 during the six months ended June 30, 2024. Based upon projected expenditures in our 2025 budget, we anticipate continued use of funds from operations through the remainder of 2025, primarily for exploration related to our Golden Crest Project and Lik Project and reconnaissance exploration. See “Results of Operations” above for further explanation of some of these variances. 20 Table of Contents During the six months ended June 30, 2025, we used $4,300,000 for net purchases of short-term investments, compared to the provision cash of $388,000 for net sales of short-term investments during the six months ended June 30, 2024. The increase in our short-term investments was as a result of the funds received from (i) the sales of marketable equity securities discussed above; (ii) stock option exercises; and (iii) cash received through stock sales, discussed below. During the six months ended June 30, 2024, we acquired mineral property of $55,000 and equipment and other assets used in our exploration activities of $12,000, with no similar purchases during the six months ended June 30, 2025. We received cash proceeds of $39,000 from the sale of Kinross calls during the six months ended June 30, 2024, with no similar derivative instrument sale during the six months ended June 30, 2025. We will continue to liquidate a portion of our short-term investments as needed to fund our operations and any potential mineral property acquisitions during the remainder of 2025. We are not currently planning any potential mineral property acquisition or strategic corporate investment during the remainder of 2025. However, any such activity could involve a significant change in our cash provided or used for investing activities, depending on the structure of any potential transaction. During the six months ended June 30, 2025, we received $94,000 in net proceeds from the issuance of common stock under the ATM Program, and we received $4,411,000 from the issuance of common stock from private placements. See Note 11, Shareholders’ Equity, above. We also received $206,000 from the exercise of stock options during the six months ended June 30, 2025. During the six months ended June 30, 2024, we received net cash of $1,218,000 from the issuance of common stock under the ATM Program, discussed above. In addition, during the six months ended June 30, 2024 we received $14,000 from the issuance of common stock from the exercise of stock options, discussed above in Note 10, “Employee Stock Compensation Plans.” (e) Mineral Resources CAUTIONARY NOTE REGARDING DISCLOSURE OF MINERAL PROPERTIES Mineral Reserves and Resources We are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”), and applicable Canadian securities laws, and as a result we subject to reporting our mineral resources according to two different standards. U.S. reporting requirements are governed by Item 1300 of Regulation S-K (“S-K 1300”) issued by the SEC. Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 Standards of Disclosure for Mineral Projects adopted from the definitions provided by the Canadian Institute of Mining, Metallurgy and Petroleum. Both sets of reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, but the standards generally embody slightly different approaches and definitions. In our public filings in the U.S. and Canada and in certain other announcements not filed with the SEC, we disclose measured, indicated and inferred resources, each as defined in S-K 1300. The estimation of measured resources and indicated resources involve greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves, and therefore investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into S-K 1300-compliant reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources, and therefore it cannot be assumed that all or any part of inferred resources will ever be upgraded to a higher category. Therefore, investors are cautioned not to assume that all or any part of inferred resources exist, or that they can be mined legally or economically. 21 Table of Contents (f) Off-balance sheet arrangements As of June 30, 2025 and December 31, 2024, we had no off-balance sheet obligations. (g) Development Activities, Exploration Activities, Environmental Compliance and Contractual Obligations We are not involved in any development activities, nor do we have any contractual obligations related to any potential development activities as of June 30, 2025. As of June 30, 2025, there have been no material changes to our contractual obligations for exploration activities, environmental compliance or other obligations from those disclosed in our Management’s Discussion and Analysis included in our 2024 Annual Report. (h) Discontinued Projects We did not record any mineral property write-downs during the three and six months ended June 30, 2025 and 2024. (i) Significant Accounting Policies and Critical Accounting Estimates See Note 1 to the consolidated Financial Statements included in our 2024 Annual Report for a discussion of our significant accounting policies. Solitario’s valuation of mineral properties is a critical accounting estimate. We review and evaluate our mineral properties for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Significant negative industry or economic trends, adverse social or political developments, geologic results, geo-technical difficulties, or other disruptions to our business are a few examples of events that we monitor, as they could indicate that the carrying value of the mineral properties may not be recoverable. In such cases, a recoverability test may be necessary to determine if an impairment charge is required. There has been no change to our assumptions, estimates or calculations during the three months ended June 30, 2025. (j) Related Party Transactions As of June 30, 2025, and for the three and six months ended June 30, 2025, we have no related party transactions or balances. (k) Recent Accounting Pronouncements No recent accounting pronouncements are applicable to Solitario at this time. (l) Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the 1934 Act , with respect to our financial condition, results of operations, business prospects, plans, objectives, goals, strategies, future events, capital expenditures, and exploration and development efforts. Words such as “anticipates,” “expects,” “intends,” “forecasts,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” and similar expressions identify forward-looking statements. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described herein and the risk factors included under the heading “Risk Factors” in Part I, Item 1A of our 2024 Annual Report to which there have been no material changes. These forward-looking statements appear in a number of places in this report and include statements with respect to, among other things: · Our estimates of the value and recovery of our short-term investments; · Our estimates of future exploration, development, general and administrative and other costs; 22 Table of Contents · Our ability to realize a return on our investment in the Lik Project and Golden Crest Project; · Our ability to successfully identify and execute on transactions to acquire new mineral exploration properties and other related assets; · Our ability to secure financing in the credit or capital markets in amounts and on terms that will allow us to execute our business strategy, invest in new projects, and maintain adequate liquidity; · Our estimates of fair value of our investment in shares of Vendetta and Vox Royalty; · Our expectations regarding development and exploration of our properties including those subject to joint venture and shareholder agreements; · The impact of political and regulatory developments; · The impact of technological changes, system failures, or breaches of our network security as well as other cyber security risks that could subject us to increased operating costs, litigation and other liabilities; · The effects of macro-economic and geo-political conditions, including financial market volatility, inflation, rising interest rates, fluctuations and impacts of announced tariff and trade policies, and labor and supply shortages; · Our future financial condition or results of operations and our future revenues and expenses; · Our business strategy and other plans and objectives for future operations; and · Risks related to natural disasters or adverse external events such as epidemics or pandemics. Although we have attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that these statements will prove to be accurate as actual results and future events could differ materially from those anticipated in the statements. Except as required by law, we assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Item 3. Quantitative and Qualitative Disclosures about Market Risk Smaller Reporting Companies are not required to provide the information required by this item.