BHLL

New in FY2025

• General Risk Factors The Bunker Hill Mine restart is targeted for HY1 2026.
• Further changes to this timeline, or other factors impacting the restart, including project budget increases or delays in equipment or construction activities, would impact the Company’s ability to restart timely or require additional capital , which would adversely affect the Company’s ability to successfully restart the Mine and ultimately impact the Company’s ability to secure additional funding after restart, thereby adversely affecting our financial condition.
• The estimated timing and budget estimates of the Bunker Hill Mine restart is subject to change further based on factors beyond the Company’s control.
• These bonds are renewed annually, and as of December 31, 2025, require $2,975,000 of collateral in the form of restricted cash.
• Advancing the Mine through the development stage requires significant capital and time, and successful commercial production from the Mine will be subject to completing the requisite studies, permitting and re-commissioning, constructing and completing a processing plant, and completing other related works and infrastructure.
• As a result, the Company is subject to all of the risks associated with developing and establishing new mining operations and business enterprises, including: ● completion of studies to upgrade resources to reserves and to identify new resources and to verify commercial viability; ● the timing and cost, which can be considerable, of further exploration and, preparing feasibility studies, and permitting; ● the availability and costs of drill equipment, exploration personnel, skilled labor, and mining and processing equipment, if required; ● compliance with stringent environmental and other governmental approval and permit requirements; ● the availability of funds to finance exploration, development, and construction activities, as warranted; ● potential opposition from non-governmental organizations, local groups or local inhabitants that may delay or prevent operating activities; ● potential increases in exploration, construction, and operating costs due to changes in the cost of fuel, power, materials, and supplies; and ● potential shortages of mineral processing, construction, and other facilities related supplies.
• The Company has a history of losses and may to continue to incur losses in the future.
• The Company has incurred losses since inception, has had negative cash flow from operating activities, and may to continue to incur losses in the future.
• The Company has incurred the following losses from operations during each of the following periods: ● $13,595,412 for the year ended December 31, 2025; ● $15,649,142 for the year ended December 31, 2024; and ● $11,600,574 for the year ended December 31, 2023.
• The Company expects to continue to incur losses until such time as the Mine enters into commercial production and generates sufficient revenues to fund continuing operations.
• Government actions, such as tariffs, duties and/or foreign policy actions could adversely and unexpectedly impact the Company’s business.
• The U.S. federal government has imposed new and/or increased tariffs, duties and other trade restrictions on certain exports and/or imports to the U.S..
• These tariffs have and are likely to continue to impact imports and exports to and from the United States.
• The extent of such measures and their impacts continue, there is a risk that they could have a significant effect on the Company’s financial performance and/or business outlook.
• The Company’s principal and interest payments on the Silver Loan with Monetary Metals are denominated in silver ounces.
• The effect of these factors on the price of base and precious metals, and therefore the economic viability of the Company’s business, could negatively affect its ability to secure financing, repay the contractual obligations under the Silver Loan, or the results of its operations.
• Costs charged to the Company by the Idaho Department of Environmental Quality (“IDEQ”) for treatment of wastewater fluctuate and are not within the Company’s control.
• The Company is responsible for the cost of water treatment activities performed by the IDEQ on behalf of the EPA who is the owner of the water treatment plant.
• The water treatment costs that the Company pays are partially related to the EPA’s direct cost of treating the water emanating from the Bunker Hill Mine, which are comprised of lime and flocculant usage, electricity consumption, maintenance and repair, labor and some overhead.
• The Company is subject to significant governmental regulations that affect its operations and costs of conducting its business and may not be able to maintain all required permits and licenses to place its properties into production.
• The Company’s current and future operations, including exploration and development of the Mine, requires permits and licenses from certain governmental authorities and activities are governed by laws and regulations, including: ● laws and regulations governing mineral concession acquisition, prospecting, development, mining, and production; ● laws and regulations related to exports, taxes, and fees; ● labor standards and regulations related to occupational health and mine safety; and ● environmental standards and regulations related to waste disposal, toxic substances, land use reclamation, and environmental protection.
• It may be necessary to obtain the following environmental permit or approved plan prior to commencement of mine operations: ● Reclamation and closure plan If a reclamation and closure plan is required, there can be no assurance that the Company will be able to obtain it in a timely manner or at all.
• The Company’s activities are subject to environmental laws and regulations that may change and increase its costs of doing business and restrict its operations.
• Current publicized concern over climate change may lead to carbon taxes, requirements for carbon offset purchases or new regulations.
• The Company may experience difficulty attracting and retaining qualified management to meet the needs of its anticipated growth.
• The Company may be unable to secure or purchase additional required surface rights.

Gone since FY2024

• General Risk Factors There is substantial doubt about our ability to continue as a going concern.
• To date, the Company has earned no revenue from operations and has an accumulated deficit of $110,366,721 as of December 31, 2024.
• In addition, the Company has limited financial resources.
• As of December 31, 2024, the Company had cash and equivalents of $3,786,277 (excluding $4,474,000 of restricted cash) and a working capital deficit of $20,311,773.
• Continuation as a going concern is dependent upon achieving future financing or strategic transactions, including but not limited to a possible debt funding package from the Export-Import Bank of the United States (“EXIM”), a restructuring of the Company’s outstanding debt alongside an equity financing and new standby facility .
• However, there is no assurance that the Company will be able to successfully complete these financing and/or strategic transactions.
• Accordingly, there is substantial doubt as to whether existing cash resources and working capital are sufficient to enable the Company to continue its operations for the next 12 months as a going concern.
• Ultimately, if the Company is unable to secure sufficient additional financial resources, the Company may need to curtail or suspend its development or operations plans regarding the Bunker Hill Mine.
• The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern.
• The consolidated financial statements do not include any adjustments that may result from the outcome of this uncertainty.
• The Company’s consolidated financial statements do not give effect to any adjustments required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying Financial Statements.
• The Company’s planned debt restructure and equity financing may not be finalized, or timely finalized, which could lead to the Company being required to cease development activities and place the Mine on care and maintenance or require the Company to enter reorganization and/or liquidation proceedings.
• The Company plans to restructure its debt, raise equity and/or engage in other restructuring/financing activities.
• If these financing efforts are delayed or are not successful, there is risk that, among other things: ● third parties lose confidence in our ability to execute on the Company’s business strategy; ● it may become more difficult to attract, retain or replace key employees, and the Company’s employees could be distracted from performance of their duties or more easily attracted to other career opportunities; ● the Company could lose some or a significant portion of its liquidity, as a result of, among other things, stricter credit terms from suppliers, the commencement of reorganization, bankruptcy or insolvency proceedings or the inability to provide adequate protection to our secured lenders to permit us to access some or all of our cash; and ● the Company’s suppliers, vendors and service providers and applicable regulatory authorities could seek to renegotiate the terms of the Company’s arrangements, terminate their relationship with the Company or require financial assurances from the Company.
• Additionally, in accordance with the TSX-V policies, the approval of the Company’s stockholders will be required with respect to any Control Person (as defined in the TSX-V policies) with over 20% ownership in the Company as a result of these equity/debt financing transactions.
• In lieu of a special meeting of its stockholders, the Company intends to obtain the written consent of disinterested stockholders holding more than 50% of the current issued and outstanding Common Shares, which stockholder consent will exclude any votes held by a Control Person (each as defined in the TSX-V policies).
• There can be no assurance that this stockholder consent will be successfully obtained upon the completion of these equity/debt financing transactions.
• The Bunker Hill Mine restart has been delayed to 2026.
• Further changes to this timeline, or other factors impacting the restart project budget, will increase the Company’s required capital needs through the completion of the project, which would adversely affect the Company’s ability to secure additional funding, thereby adversely affecting its financial condition.
• On December 13, 2024 the Company announced that the Bunker Hill Mine restart project underwent a strategic review resulting in an updated timeline and capital requirements.
• Pursuant to this review, the Company now forecasts a total restart expenditure (excluding working capital) of $103,000,000, up from the previously forecasted $67,000,000 and $56,000,000 in the PFS, with the restart project anticipated to be delayed by up to four months.
• To provide sufficient project financing for the ongoing development of the Bunker Hill Mine, the Company has been drawing down in tranches on the Standby Facility provided by Sprott and seeking to finalize the ongoing discussions with its strategic partners for potential offtake or similar financing for up to an additional $40,000,000.
• However, the estimated timing of the Bunker Hill Mine restart is subject to change further based on factors beyond the Company’s control, including but not limited to supply chain dynamics.
• In addition, the Company’s pre-production budget estimates are subject to change further based on factors beyond its control, including but not limited to cost inflation and supply chain dynamics.
• These bonds are renewed annually, and as of December 31, 2024, require $4,475,000 of collateral in the form of letters of credit.
• Advancing the Mine through the development stage will require significant capital and time, and successful commercial production from the Mine will be subject to completing the requisite studies, permitting and re-commissioning, constructing a processing plant, and completing other related works and infrastructure.
• As a result, the Company is subject to all of the risks associated with developing and establishing new mining operations and business enterprises, including: ● completion of studies to verify reserves and commercial viability, including the ability to find sufficient ore reserves to support a commercial mining operation; ● the timing and cost, which can be considerable, of further exploration, preparing feasibility studies, and permitting and construction of infrastructure, mining and processing facilities; ● the availability and costs of drill equipment, exploration personnel, skilled labor, and mining and processing equipment, if required; ● the availability and cost of appropriate smelting and/or refining arrangements, ● compliance with stringent environmental and other governmental approval and permit requirements; ● the availability of funds to finance exploration, development, and construction activities, as warranted; ● potential opposition from non-governmental organizations, local groups or local inhabitants that may delay or prevent development activities; ● potential increases in exploration, construction, and operating costs due to changes in the cost of fuel, power, materials, and supplies; and ● potential shortages of mineral processing, construction, and other facilities related supplies.
• The Company has a history of losses and expects to continue to incur losses in the future.
• The Company has incurred losses since inception, has had negative cash flow from operating activities, and expects to continue to incur losses in the future.
• The Company has incurred the following losses from operations during each of the following periods: ● $15,649,142 for the year ended December 31, 2024; ● $11,600,574 for the year ended December 31, 2023; and ● $16,487,161 for the year ended December 31, 2022.
• The Company expects to continue to incur losses unless and until such time as the Mine enters into commercial production and generates sufficient revenues to fund continuing operations.
• Government actions, such as tariffs and/or foreign policy actions could adversely and unexpectedly impact the Company’s business.
• As a result of the 2024 United States federal election, there is an increased risk that the United States could implement new and/or increased tariffs and other trade restrictions on all exports to the United States or that other counties could implement reciprocal measures on imports from the United States.
• The extent of such measures and their impact is unknown, and there is a risk that they could have a significant effect on the Company’s financial performance and/or business outlook.
• The effect of these factors on the price of base and precious metals, and therefore the economic viability of the Company’s business, could negatively affect its ability to secure financing or its results of operations.
• Costs charged to the Company by the Idaho Department of Environmental Quality (“IDEQ”) for treatment of wastewater fluctuate a great deal and are not within the Company’s control.
• The Company is billed annually for water treatment activities performed by the IDEQ on behalf of the EPA who is the owner of the water treatment plant.
• The water treatment costs that the Company is billed for are partially related to the EPA’s direct cost of treating the water emanating from the Bunker Hill Mine, which are comprised of lime and flocculant usage, electricity consumption, maintenance and repair, labor and some overhead.
• The Company is subject to significant governmental regulations that affect its operations and costs of conducting its business and may not be able to obtain all required permits and licenses to place its properties into production.
• The Company’s current and future operations, including exploration and development of the Mine, do and will require permits from governmental authorities and will be governed by laws and regulations, including: ● laws and regulations governing mineral concession acquisition, prospecting, development, mining, and production; ● laws and regulations related to exports, taxes, and fees; ● labor standards and regulations related to occupational health and mine safety; and ● environmental standards and regulations related to waste disposal, toxic substances, land use reclamation, and environmental protection.

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