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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-06 · 125 added, 92 removed, 92 unchanged (70% of the section changed)

1 unchanged sentence

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, 2025 and 2024, and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Solitario’s 2025 Annual Report.

Solitario's financial condition and results of operations as of and through March 31, 2026 are not necessarily indicative of what may be expected in future periods.

Solitario's financial condition and results of operations as of and through June 30, 2026 are not necessarily indicative of what may be expected in future periods.

Unless otherwise indicated, all references to dollars are to U.S.

1 unchanged sentence

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.

Currently our primary focus is the exploration of our 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.

3 unchanged sentences

however, we have conducted property evaluations for potential acquisition in other parts of the world.

At March 31, 2026, 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.

At June 30, 2026, 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 and the Bright Angel project in Colorado, neither of which have 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 project, the Cat Creek project and the Bright Angel project 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.

From time-to-time, we also conduct potential acquisition evaluations in other countries 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.

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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 March 31, 2026, 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, the Cat Creek project and the Bright Angel project;

As of June 30, 2026, 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, the Cat Creek project and the Bright Angel project;

(ii) conduct reconnaissance exploration and (iii) potentially acquire additional mineral property assets.

3 unchanged sentences

(b) Results of Operations

Comparison of the quarter ended March 31, 2026 to the quarter ended March 31, 2025

We had a net loss of $494,000 or $0.01 per basic and diluted share for the three months ended March 31, 2026 compared to a net loss of $511,000 or $0.01 per basic and diluted share for the three months ended March 31, 2025.

As explained in more detail below, the primary reasons for the decrease in the net loss in the three months ended March 31, 2026 compared to the loss in the three months ended March 31, 2025 were (i) a decrease in exploration expense to $182,000 during the three months ended March 31, 2026 compared to exploration expense of $239,000 during the three months ended March 31, 2025;

(ii) a decrease in general and administrative expense to $376,000 during the three months ended March 31, 2026 compared to general and administrative expense of $490,000 during the three months ended March 31, 2025;

(iii) no realized and unrealized loss on derivative instruments during the three months ended March 31, 2026 compared to a realized and unrealized loss on derivative instruments of $206,000 during the three months ended March 31, 2025;

and (iv) an increase in interest and dividend income to $65,000 during the three months ended March 31, 2026 compared to interest and dividend income of $46,000 during the three months ended March 31, 2025.

Partially offsetting this decrease in the net loss was a decrease in realized and unrealized gain on marketable equity securities to $2,000 during the three months ended March 31, 2026 compared to a realized and unrealized gain on marketable equity securities of $385,000 during the three months ended March 31, 2025.

Comparison of the three months ended June 30, 2026 to the three months ended June 30, 2025

We had a net loss of $1,830,000 or $0.02 per basic and diluted share for the three months ended June 30, 2026 compared to a net loss of $943,000 or $0.01 per basic and diluted share for the three months ended June 30, 2025.

As explained in more detail below, the primary reasons for the increase in our net loss in the three months ended June 30, 2026 compared to the net loss during the three months ended June 30, 2025 were (i) an increase in exploration expense to $1,508,000 during the three months ended June 30, 2026 compared to exploration expense of $671,000 during the three months ended June 30, 2025;(ii) an increase in general and administrative expense to $451,000 during the three months ended June 30, 2026 compared to general and administrative expense of $388,000 during the three months ended June 30, 2025;

and (iii) a decrease in the realized and unrealized gain on marketable equity securities to $56,000 during the three months ended June 30, 2026 compared to a realized and unrealized gain on marketable equity securities of $201,000 during the three months ended June 30, 2025.

Partially offsetting these increases in our net loss compared to the prior year period were (i) an increase in interest and dividend income to $77,000 during the three months ended June 30, 2026 compared to interest and dividend income of $52,000 during the three months ended June 30, 2025;

and (ii) no loss on derivative instruments during the three months ended June 30, 2026 compared to a loss on derivative instruments of $130,000 during the three months ended June 30, 2025.

Each of the major components of these items is discussed in more detail below.

Our exploration expense decreased to $182,000 during the three months ended March 31, 2026 compared to exploration expense of $239,000 during the three months ended March 31, 2025.

The decrease was primarily a result of (i) a decrease in expenses at our Golden Crest project to $149,000 during the three months ended March 31, 2026 compared to exploration expense of $216,000 during the three months ended March 31, 2025;

(ii) a decrease in our exploration expenditures at our Lik project to $5,000 during the three months ended March 31, 2026 compared to $11,000 during the three months ended March 31, 2025;

and (iii) a reduction in our exploration expenditures at our Cat Creek project to $1,000 during the three months ended March 31, 2026 compared to $5,000 during the three months ended March 31, 2025.

These reductions in costs were partially offset by the expenditures of $20,000 at our Bright Angel project during the three months ended March 31, 2026, with no expenditures for that project in the prior year period.

Our full-year 2026 total exploration and development budget is approximately $5,673,000, which reflects potential drilling programs both at the Golden Crest project during 2026 budgeted at $2,217,000 and the Cat Creek project during 2026 budgeted at $516,000 as well as a proposed limited exploration program at the Lik and Bright Angel projects.

All of the planned drilling during 2026 is dependent on receiving required permits and availability of third-party drilling contractors.

Nexa is responsible for all planned 2026 exploration expenditures at the Florida Canyon Project.

The proposed 2026 budget does not reflect any exploration costs for new projects or assets we may acquire during 2026.

Our planned exploration activities in 2026 may be modified, as necessary for any drilling programs we may undertake or other projects we may acquire.

Changes may occur to our planned 2026 exploration expenditures related to any number of factors including permitting delays, potential acquisition of new properties, joint venture funding, commodity prices and changes in the deployment of our capital.

We expect our full-year exploration expenditures for 2026 to be higher than the exploration expenditures for full-year 2025.

Exploration expense by project for the three months ended March 31, 2026 and 2025 consisted of the following:

(in thousands)

Golden Crest project

Cat Creek project

Bright Angel project

Our net exploration expense increased to $1,508,000 during the three months ended June 30, 2026 compared to exploration expense of $671,000 during the three months ended June 30, 2025 primarily as a result of (i) an increase in exploration expense at our Golden Crest project to $1,404,000 during the three months ended June 30, 2026 compared to $635,000 during the three months ended June 30, 2025 as a result of earlier commencement of drilling at the Golden Crest project during the second quarter of 2026, compared to the drilling in the second quarter of 2025;

(ii) an increase in exploration expense at our Lik project in Alaska during the three months ended June 30, 2026 of $25,000 compared to exploration expenditures of $19,000 during the three months ended June 30, 2025;

(iii) an increase in exploration expense at our Cat Creek project to $28,000 during the three months ended June 30, 2026 compared with $10,000 during the same period of 2025 and (iv) an increase in exploration expense at our Bright Angel project to $44,000 during the three months ended June 30, 2026, with no exploration expenses during the same period of 2025.

Drilling commenced in May 2026 at our Golden Crest project which resulted in approximately $1,140,000 in drilling expenditures in the three months ended June 30, 2026 compared to $347,000 in drilling expenditures in the three months ended June 30, 2025 as drilling did not commence until June in the three months ended June 30, 2025.

We have budgeted approximately $5,673,000 for the full-year exploration expenditure for 2026, which includes approximately $2,217,000 for drilling at the Golden Crest Project.

We expect our full-year exploration expenditure for 2026 to be higher than our full-year exploration expenditure for 2025.

Exploration expense (in thousands) by project consisted of the following:

Three months ended

Six months ended

Reconnaissance

Total exploration expense

General and administrative costs, excluding stock option compensation costs, discussed below, were $309,000 during the three months ended March 31, 2026 compared to $364,000 during the three months ended March 31, 2025.

The major components of these costs were related to (i) salaries and benefit expense of $73,000 during the three months ended March 31, 2026 compared to salary and benefit costs of $118,000 during the three months ended March 31, 2025, as a result of a reduction in staff in 2026;

(ii) legal and professional expenditures of $67,000 during the three months ended March 31, 2026 compared to legal and professional expenditures of $54,000 during the three months ended March 31, 2025;

(iii) office rent and expenses of $28,000 during the three months ended March 31, 2026 compared to $29,000 during the three months ended March 31, 2025;

and (iv) travel and shareholder relation costs of $141,000 during the three months ended March 31, 2026 compared to $163,000 during the three months ended March 31, 2025.

We anticipate the overall full-year general and administrative costs will be comparable between 2026 and 2025.

We recorded $67,000 of stock option expense for the amortization of unvested grant date fair value with a credit to additional paid-in-capital during the three months ended March 31, 2026 compared to $126,000 of stock option compensation expense during the three months ended March 31, 2025.

The lower costs during the three months ended March 31, 2026 related to the grant date fair value of 2,125,000 options granted during 2024 which are being amortized over three years, resulting in higher initial costs during 2025.

These non-cash charges for the amortization of grant date fair values are related to vesting of stock options outstanding during the three months ended March 31, 2026 and 2025.

General and administrative costs, excluding stock option compensation costs, discussed below, were $351,000 during the three months ended June 30, 2026 compared to $263,000 during the three months ended June 30, 2025.

The major components of our general and administrative costs were (i) salaries and benefit expense of $185,000 during the three months ended June 30, 2026 compared to salary and benefit costs of $79,000 during the three months ended June 30, 2025 as a result of salary increases and bonuses paid in 2026;

(ii) legal and accounting expenditures of $54,000 in the three months ended June 30, 2026 compared to $61,000 in the three months ended June 30, 2025;

(iii) office rent and expenses of $39,000 during the three months ended June 30, 2026 compared to $17,000 during the three months ended June 30, 2025;

and (iv) travel and shareholder relation costs of $73,000 during the three months ended June 30, 2026 compared to $106,000 during the three months ended June 30, 2025.

We anticipate the full-year general and administrative costs will be comparable for 2026 and 2025.

We recorded $100,000 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, 2026 compared to $125,000 of stock option compensation expense during the three months ended June 30, 2025.

These non-cash charges related to the expense for vesting on stock options outstanding during the three months ended June 30, 2026 and 2025.

The primary reason for the decrease in stock option compensation expense during the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was as a result of certain options from prior years becoming fully vested or forfeited in prior periods with no grant date fair value amortized on those option during the three months ended June 30, 2026 compared to 2025.

The remaining expense related to the amortization of grant date fair values of outstanding unvested options for the three months ended June 30, 2026 and 2025 was comparable.

See Note 10, “Employee Stock Compensation Plans,” above, for additional information on our stock option expense.

We recorded a realized and unrealized gain on marketable equity securities of $2,000 during the three months ended March 31, 2026 compared to a realized and unrealized gain on marketable equity securities of $385,000 during the three months ended March 31, 2025 as further discussed above in Note 3 “Marketable Equity Securities” to the condensed consolidated financial statements.

The gain during the three months ended March 31, 2026 was related to a realized gain of $37,000 on the sale of 10,000 shares of Vox Royalty common stock which was partially offset by unrealized loss of $29,000 on our holdings of Vendetta common stock during the three months ended March 31, 2026 and an unrealized loss of $6,000 on our holdings of Vox Royalty common stock during the three months ended March 31, 2026.

The gain during the three months ended March 31, 2025 was primarily related to an increase of $334,000 in the value of our holdings of Kinross common stock;

and (ii) an increase of $77,000 on our holdings of Vox Royalty common stock.

These unrealized gains during the three months ended March 31, 2025 were partially offset by a $27,000 loss on our holdings of Vendetta Mining Corp.

common stock.

We recorded interest and dividend income of $65,000 during the three months ended March 31, 2026 compared to interest income of $46,000 during the three months ended March 31, 2025.

The increase in interest income is related to an increase in the balance of our short-term investments during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily as a result of ATM equity sales during the 2026 period in excess of exploration and other expenditures during the three months ended March 31, 2026.

We anticipate our interest income will be comparable during the full year of 2026 and 2025 as we plan to use our short-term investments and our cash balances during the remainder of 2026 for ordinary overhead, operational costs, and the exploration, evaluation and / or acquisition of mineral properties discussed above.

See “Liquidity and Capital Resources” below for further discussion of our cash and cash equivalent balances.

During the three months ended March 31, 2025, we recorded a non-cash loss on derivative instruments of $206,000 related to certain Kinross calls we sold during 2024.

The Kinross calls were settled in the second quarter of 2025 upon the sale of our holdings of Kinross common stock.

We had no derivative instruments during the three months ended March 31, 2026.

We recorded a realized and unrealized gain on marketable equity securities of $56,000 during the three months ended June 30, 2026 compared to a realized and unrealized gain on marketable equity securities of $201,000 during the three months ended June 30, 2026.

The realized and unrealized gains and losses are detailed below.

We recorded a non-cash unrealized loss on marketable equity securities of $82,000 during the three months ended June 30, 2026 compared to an unrealized loss on marketable equity securities of $1,150,000 during the three months ended June 30, 2025.

The non-cash unrealized loss on marketable equity securities of $82,000 during the three months ended June 30, 2026 was as a result of (i) a decrease in the fair value of 5,700 shares of Vox Royalty common stock of $3,000 based on quoted market prices, and (ii) the transfer of $138,000 of prior unrealized gain to realized gain on the sale of 34,300 shares of Vox Royalty common stock.

These decreases were partially offset by (i) an increase in the fair value of our 7,750,000 shares of Vendetta Mining Corp.

(“Vendetta”) common stock of $27,000 during the three months ended June 30, 2026 based on quoted market prices and (ii) an unrealized increase of $32,000 in the value of the 34,300 shares of Vox Royalty sold during the three months ended June 30, 2026.

The non-cash unrealized loss during the three months ended June 30, 2025 of $1,150,000 was 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 $32,000 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 $264,000 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.

During the three months ended June 30, 2026 we recorded a realized gain on sale of $138,000 from the sale of 34,300 shares of Vox Royalty common stock compared to the three months ended June 30, 2025 when we recorded a realized gain of $1,319,000 from the sale of 100,000 shares of Kinross common stock and a realized gain of $32,000 from the sale of 34,055 shares of Vox Royalty common stock.

We recorded interest and dividend income of $77,000 during the three months ended June 30, 2026 compared to interest income of $52,000 during the three months ended June 30, 2025.

This increase was primarily due to an increase in our funds held in our money market account during the three months ended June 30, 2026 compared to the funds held in our money market account during the three months ended June 30, 2025.

During the three months ended June 30, 2025, we recorded a non-cash loss on derivative instruments of $130,000 with no comparable income or loss during the three months ended June 30, 2026, as we no longer held Kinross calls.

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.

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 months ended March 31, 2026 and 2025, we recorded no property impairments.

At March 31, 2026 and 2025, our net operating loss carry-forwards exceed our built-in gains on marketable equity securities resulting in a net tax asset position for which we provide a valuation allowance for all net deferred tax assets.

We recorded no income tax expense or benefit during the three months ended March 31, 2026 or 2025.

As a result of our exploration activities, we anticipate we will not have currently payable income taxes during 2026.

During the three and six months ended June 30, 2026 and 2025, we recorded no property impairments.

We recorded no income tax expense or benefit during the three and six months ended June 30, 2026 or 2025 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 2026.

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 regard 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, 2026 to the six months ended June 30, 2025

We had a net loss of $2,324,000 or $0.03 per basic and diluted share for the six months ended June 30, 2026 compared to a net loss of $1,454,000 or $0.02 per basic and diluted share for the six months ended June 30, 2025.

As explained in more detail below, the primary reasons for the increase in our net loss were (i) an increase in exploration expense to $1,690,000 during the six months ended June 30, 2026 compared to exploration expense of $910,000 during the six months ended June 30, 2025 and (ii) a decrease in the realized and unrealized gain on marketable equity securities to $58,000 during the six months ended June 30, 2026, compared with a realized and unrealized gain on marketable equity securities of $586,000 during the six months ended June 30, 2025.

Partially offsetting these increases in our net loss during the six months ended June 30, 2026 compared to the net loss during the six months ended June 30, 2025 were (i) a decrease in general and administrative expense to $827,000 during the six months ended June 30, 2026 compared to general and administrative expense of $878,000 during the six months ended June 30, 2025;

(ii) no loss on derivative instruments during the six months ended June 30, 2026 compared to a loss on derivative instruments of $336,000 during the six months ended June 30, 2025;

(iii) an increase in interest and dividend income to $142,000 during the six months ended June 30, 2026 compared to interest and dividend income of $98,000 during the six months ended June 30, 2025 and (iv) a decrease in depreciation to $7,000 during the six months ended June 30, 2026 compared to depreciation expense of $14,000 during the six months ended June 30, 2025.

The significant changes for these items are discussed in more detail below.

Our net exploration expense increased to $1,690,000 during the six months ended June 30, 2026 compared to $910,000 during the six months ended June 30, 2025.

The primary reasons for the increase were (i) exploration expenditures at our Golden Crest project increased to $1,553,000 during the six months ended June 30, 2026 compared to $851,000 during the six months ended June 30, 2025 as our drilling program in 2026 started earlier in the six months ended June 30, 2026, with drilling and related expenditures of approximately $1,140,000 through June 30, 2026 compared with $347,000 through June 30, 2025;

(ii) an increase in our exploration expenditures at our Cat Creek project to $29,000 during the six months ended June 30, 2026 compared to $15,000 during the six months ended June 30, 2025 and (iii) expenditures at our Bright Angel project of $64,000 during the six months ended June 30, 2026, with no similar amount during the six months ended June 30, 2025.

We anticipate a significant increase in exploration expenditures at our Cat Creek project in the second half of 2026 primarily due to planned drilling on the project, as discussed above.

General and administrative costs, excluding stock option compensation costs discussed below, were $660,000 during the six months ended June 30, 2026 compared to $627,000 during the six months ended June 30, 2025.

The major components of the costs were (i) salary and benefit expense during the six months ended June 30, 2026 of $258,000 compared to salary and benefit expense of $197,000 during the six months ended June 30, 2025;

(ii) legal and accounting expenditures of $121,000 during the six months ended June 30, 2026, compared to $114,000 during the six months ended June 30, 2025;

(iii) office and other costs of $67,000 during the six months ended June 30, 2026 compared to $46,000 during the six months ended June 30, 2025;

and (iv) travel and shareholder relation costs of $214,000 during the six months ended June 30, 2026 compared to $270,000 during the six months ended June 30, 2025.

During the six months ended June 30, 2026 and 2025, Solitario recorded $167,000 and $251,000, respectively, of stock option expense for the amortization of unvested grant date fair value with a credit to additional paid-in capital.

The decrease during the six months ended June 30, 2026 was primarily related to a fewer options granted during 2025 compared to 2024, discussed above.

During the six months ended June 30, 2026 Solitario recorded a realized gain of $175,000 and unrealized loss on marketable equity securities of $117,000 netting to a realized and unrealized gain of $58,000 compared to a realized gain of $1,351,000 and unrealized loss of $765,000 netting to a realized and unrealized gain on marketable equity securities of $586,000 during the six months ended June 30, 2025.

These are detailed below.

We recorded an unrealized loss on marketable equity securities of $117,000 during the six months ended June 30, 2026 primarily as a result of (i) an unrealized loss on the transfer of prior unrealized gain on the sale of 44,300 shares of Vox Royalty upon their sale of $175,000 and (ii) an unrealized loss during the six months ended June 30, 2026 of $2,000 on our holdings of 7,750,000 shares of Vendetta common stock.

These losses were partially offset by (i) an increase in the value of our 5,700 shares of Vox Royalty of $17,000, and (ii) an unrealized gain of $43,000 on our holdings of 44,300 shares of Vox Royalty share through the date of their sale during the six months ended June 30, 2026.

The unrealized loss on marketable equity securities of $765,000 during the six months ended June 30, 2025 was primarily related to (i) the transfer of $915,000 of unrealized gain, as an unrealized loss, 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, as an unrealized loss, 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 losses on 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.

Our realized gain on marketable equity securities of $175,000 during the six months ended June 30, 2026 was from the sale of 44,300 shares of Vox Royalty shares for net proceeds of $270,000.

The realized gain of $1,351,000 during the six months ended June 30, 2025 was from (i) $915,000 transferred from unrealized gain upon the sale of 100,000 shares of Kinross, (ii) $33,000 transferred from unrealized gain upon the sale of Vox Royalty shares and (iii) the recognition of the proceeds of $403,000 for the settlement of the Kinross calls upon the sale of the Kinross shares.

We recorded interest and dividend income of $142,000 during the six months ended June 30, 2026 compared to interest and dividend income of $98,000 during the six months ended June 30, 2025.

The increase in interest income was primarily related to an increase in our average outstanding balance of money market holdings during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

We anticipate interest income will decrease during the remainder of 2026, as a result of the use of funds in the money market account to fund our exploration and general and administrative expenditures.

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, with no similar loss or gain on derivative instruments during the six months ended June 30, 2026.

Cash and Short-term Investments

As of March 31, 2026, we have $8,442,000 in cash and short-term investments.

As of June 30, 2026, we have $9,009,000 in cash and short-term investments.

Our short-term investments are comprised of $8,500,000 invested in a money market account with a brokerage firm.

3 unchanged sentences

Our marketable equity securities are carried at fair value, which is based upon market quotes of the underlying securities.

At March 31, 2026, we owned 7,750,000 shares of Vendetta common stock and 40,000 shares of Vox common stock.

At March 31, 2026, the Vendetta shares are recorded at their fair value of $28,000, and the Vox shares are recorded at their fair value of $209,000.

During the three months ended March 31, 2026 we sold 10,000 shares of our Vox Royalty common stock for proceeds of $59,000 and recorded a realized gain on sale of $37,000.

We did not sell any of our marketable equity securities during the three months ended March 31, 2025.

At June 30, 2026, we owned 7,750,000 shares of Vendetta common stock and 5,700 shares of Vox common stock.

At June 30, 2026, the Vendetta shares are recorded at their fair value of $55,000, and the Vox shares are recorded at their fair value of $27,000.

During the six months ended June 30, 2026 we sold 44,300 shares of our Vox Royalty common stock for proceeds of $270,000 and recorded a realized gain on sale of $175,000.

We sold our 100,000 shares of Kinross during the six months ended June 30, 2025 for net proceeds of $998,000, after settlement of our outstanding Kinross call, and recorded a realized gain on sale of $915,000, and we sold 34,055 shares of Vox Royalty shares for net proceeds of $106,000 and recorded a realized gain on sale of $33,000.

We anticipate we may sell a portion of our holdings of marketable equity securities during the remainder of 2026 depending on cash needs and market conditions.

Working Capital

We had working capital of $8,579,000 at March 31, 2026 compared to working capital of $7,795,000 at December 31, 2025.

Our working capital at March 31, 2026 consists primarily of our cash and cash equivalents, our short-term investments, discussed above, our investment in marketable equity securities of $237,000, and other current assets of $171,000, less our accounts payable of $271,000.

As of March 31, 2026, our cash balances along with our short-term investments and marketable equity securities are adequate to fund our expected expenditures over the next year.

We had working capital of $8,584,000 at June 30, 2026 compared to working capital of $7,795,000 at December 31, 2025.

Our working capital at June 30, 2026 consists primarily of our cash and cash equivalents, our short-term investments, discussed above, our investment in marketable equity securities of $82,000, and other current assets of $143,000, less our accounts payable of $650,000.

The increase in our working capital from December 31, 2025 is primarily the result of our receipt of cash proceeds from sales of our common stock under the ATM Program and in a private placement that we completed in May 2026.

As of June 30, 2026, 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.

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Stock-Based Compensation Plans

As of both March 31, 2026 and December 31, 2025, there were options outstanding from the 2013 Plan to acquire an aggregate of 1,965,000 shares of Solitario common stock, with exercise prices between $0.69 per share and $0.60 per share.

As of both March 31, 2026 and December 31, 2025 there were options outstanding from the 2023 Plan to acquire 3,600,000 shares of Solitario common stock with exercise prices between $0.51 per share and $0.85 per share.

We did not grant any options during the three months ended March 31, 2026 or 2025.

No options were exercised during the three months ended March 31, 2026.

During the three months ended March 31, 2025, options for 778,500 shares of Solitario common stock were exercised under the 2013 Plan with an exercise price of $0.20 per share for proceeds of $156,000.

As of June 30, 2026, there were options outstanding from the 2013 Plan to acquire an aggregate of 1,825,000 shares of Solitario common stock, all with an exercise price of $0.60 per share.

As of December 31, 2025, there were options outstanding from the 2013 Plan to acquire an aggregate of 1,965,000 shares of Solitario common stock, with exercise prices between $0.60 and $0.69 per share.

As of both June 30, 2026 and December 31, 2025 there were options outstanding under the 2023 Plan to acquire 3,600,000 shares of Solitario common stock with exercise prices between $0.51 per share and $0.85 per share.

We did not grant any options during the three and six months ended June 30, 2026 or 2025.

During the three and six months ended June 30, 2026, options for 90,000 shares of Solitario common stock were exercised under the 2013 Plan with exercise prices between $0.69 and $0.67 per share for proceeds of $61,000.

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 under the 2013 Plan with an exercise price of $0.20 per share for proceeds of $50,000 and $206,000, respectively.

We do not anticipate the exercise of options to be a significant source of capital during the remainder of 2026.

(d) Cash Flows

Net cash used in operations during the three months ended March 31, 2026 decreased to $473,000 compared to $598,000 of net cash used in operations for the three months ended March 31, 2025 primarily as a result of (i) the decrease in exploration expense during the three months ended March 31, 2026 to $182,000 compared to $239,000 during the three months ended March 31, 2025;

(ii) a reduction in general and administrative expenditures, excluding non-cash stock option expense, to $309,000 during the three months ended March 31, 2026 compared to general and administrative expenditures, excluding non-cash stock option expense, of $364,000 during the three months ended March 31, 2025;

(iii) an increase in interest income to $65,000 during the three months ended March 31, 2026 compared to interest income of $46,000 during the three months ended March 31, 2025;

and (iv) a reduction in the use of cash for the increase in accounts payable and other current liabilities during the three months ended March 31, 2026 of $56,000 compared to a use of cash for the decrease in accounts payable and other current liabilities of $51,000 during the three months ended March 31, 2025.

Partially offsetting this reduction in the use of cash was an increase in the use of cash of $110,000 for an increase in prepaid expenses and other current assets during the three months ended March 31, 2026, with no similar use during the three months ended March 31, 2025.

Based upon projected expenditures in our 2026 budget, we anticipate continued use of funds from operations through the remainder of 2026, primarily for exploration related to our Golden Crest project, our Lik project, our Cat Creek and Bright Angel projects and reconnaissance exploration.

Net cash used in operations during the six months ended June 30, 2026 increased to $1,848,000 compared to $1,401,000 of net cash used in operations for the six months ended June 30, 2025 primarily as a result of (i) an increase in exploration expenses to $1,690,000 during the six months ended June 30, 2026 compared to exploration expenses of $910,000 during the six months ended June 30, 2025.

Partially offsetting this increase in the use of cash were (i) a decrease in general and administrative expense during the six months ended June 30, 2026 to $827,000 compared to $878,000 during the six months ended June 30, 2025;

(ii) an increase in interest and dividend income to $142,000 during the six months ended June 30, 2026 compared to interest income of $98,000 during the six months ended June 30, 2025;

(iii) a reduction in the use of cash for prepaid expenses and other current assets to $82,000 for the six months ended June 30, 2026 compared to the use of cash of $163,000 for prepaid expenses and other current assets during the six months ended June 30, 2025.

and (iv) a provision of cash from an increase in accounts payable and other current liabilities during the six months ended June 30, 2026 of $435,000 compared to a provision of cash for an increase in accounts payable and other current liabilities of $181,000 during the six months ended June 30, 2025.

Based upon projected expenditures in our 2026 budget, we anticipate continued use of funds from operations through the remainder of 2026, primarily for exploration related to our Golden Crest and Cat Creek project as well as our Bright Angel and Lik projects and reconnaissance exploration.

See “Results of Operations” above for further explanation of some of these variances.

During the three months ended March 31, 2026, we used $702,000 in cash, for the net purchases of short-term investments compared to $550,000 which was provided from the net sales of our short-term investments during the three months ended March 31, 2025.

In addition, we received $59,000 in proceeds from the sale of 10,000 shares of Vox Royalty common stock during the three months ended March 31, 2026.

There were no other significant provisions or use of cash from investing activities during the three months ended March 31, 2026 or 2025.

We anticipate we may sell a portion of our marketable equity securities during the remainder of 2026.

We will liquidate a portion of our short-term investments as needed to fund our operations and any potential mineral property acquisitions during the remainder of 2026.

We are not currently planning any potential mineral property acquisition or strategic corporate investment during the remainder of 2026.

During the six months ended June 30, 2026, we used $927,000 for net purchases of short-term investments, compared to the use of cash of $4,300,000 for net purchases of short-term investments during the six months ended June 30, 2025.

The increase during 2025 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.

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 2026, although we are not currently planning any potential mineral property acquisition or strategic corporate investment during the remainder of 2026.

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 three months ended March 31, 2026 we sold 1,640,425 shares of Solitario common stock through our ATM program at an average price of $0.76 per share for net proceeds of $1,201,000 after commissions and other expenses.

We did not issue any shares through our ATM program during the three months ended March 31, 2025.

During the three months ended March 31, 2025 we received $156,000 from the issuance of common stock from the exercise of stock options, discussed above in Note 10, “Employee Stock Compensation Plans,” to the condensed consolidated financial statements.

No options were exercised during the three months ended March 31, 2026.

We anticipate we may issue additional shares through the ATM program during the remainder of 2026, depending on our cash needs and market conditions.

During the six months ended June 30, 2026, we received $2,647,000 in net proceeds from the issuance of common stock under the ATM Program, and we received $228,000 from a private placement by Newmont.

We also received $61,000 from the exercise of stock options during the six months ended June 30, 2026.

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.

We also received $206,000 from the exercise of stock options during the six months ended June 30, 2025.

See Note 11, Shareholders’ Equity, above.

(e) Mineral Resources

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(f) Off-balance sheet arrangements

As of March 31, 2026 and December 31, 2025, we had no off-balance sheet obligations.

As of June 30, 2026 and December 31, 2025, 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 March 31, 2026.

As of March 31, 2026, 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 2025 Annual Report.

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, 2026.

As of June 30, 2026, 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 2025 Annual Report.

(h) Discontinued Projects

We did not record any mineral property write-downs during the three months ended March 31, 2026 and 2025.

We did not record any mineral property write-downs during the three and six months ended June 30, 2026 and 2025.

(i) Significant Accounting Policies and Critical Accounting Estimates

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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 March 31, 2026.

There has been no change to our assumptions, estimates or calculations during the three and six months ended June 30, 2026.

(j) Related Party Transactions

As of March 31, 2026, and for the three months ended March 31, 2026, we have no related party transactions or balances.

As of June 30, 2026, and for the three and six months ended June 30, 2026, we have no related party transactions or balances.

(k) Recent Accounting Pronouncements

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Our estimates of the value and recovery of our short-term investments;

The results of exploration activities and drilling programs at our projects;

Our estimates of future exploration, development, general and administrative and other costs;

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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, interest rate f;ictiatopms, fluctuations and impacts of announced tariff and trade policies, and labor and supply shortages;

The effects of macro-economic and geo-political conditions, including financial market volatility, inflation, interest rate 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;

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis