# Idaho Strategic Resources, Inc. (IDR) Informational only - not investment advice. CIK: 0001030192 SIC: 1040 Gold and Silver Ores SIC breadcrumb: [Mining](/division/B/) > [Metal Mining](/major-group/10/) > [SIC 1040 Gold and Silver Ores](/industry/1040/) Latest 10-K filed: 2026-03-23 SEC page: https://www.sec.gov/edgar/browse/?CIK=1030192 Filing source: https://www.sec.gov/Archives/edgar/data/1030192/000165495426002560/idr_10k.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 42406253 | USD | 2025 | 2026-03-23 | | Net income | 16715674 | USD | 2025 | 2026-03-23 | | Assets | 116238730 | USD | 2025 | 2026-03-23 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001030192.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 92,538 | 1,891,173 | 544,751 | 4,281,571 | 3,629,837 | | | 7,630,416 | 9,580,189 | 13,656,733 | 25,765,373 | 42,406,253 | | Net income | | | -1,361,008 | -22,124 | 752,279 | -726,507 | -739,939 | -3,260,361 | -2,631,092 | 1,157,746 | 8,836,685 | 16,715,674 | | Operating income | | | -1,036,381 | 297,513 | 824,442 | -686,025 | -995,106 | -3,060,286 | -2,552,237 | 1,012,370 | 8,425,535 | 15,601,001 | | Gross profit | | | 69,222 | 1,189,027 | -726,881 | 738,548 | 67,546 | 487,877 | 1,553,921 | 3,965,036 | 12,950,493 | 26,205,927 | | Diluted EPS | | | | | | | | | | 0.09 | 0.67 | 1.14 | | Operating cash flow | | | -672,941 | 337,619 | -1,415,135 | 206,407 | -482,418 | -1,351,027 | -1,817,090 | 2,104,009 | 10,840,886 | 19,101,691 | | Capital expenditures | 600,869 | 133,260 | 131,657 | 144,464 | 317,485 | | | 664,645 | 1,441,874 | 772,245 | 2,219,147 | 6,714,393 | | Assets | | | 8,858,012 | 9,379,847 | 10,638,749 | 10,852,181 | 14,669,061 | 17,919,201 | 20,983,621 | 23,889,789 | 44,021,630 | 116,238,730 | | Liabilities | | | 3,712,068 | 2,532,360 | 1,492,842 | 2,195,204 | 3,404,897 | 4,855,399 | 3,270,551 | 3,354,191 | 3,608,316 | 5,396,782 | | Stockholders' equity | | | 2,003,632 | 3,735,193 | 6,072,675 | 5,653,089 | 8,313,276 | 10,171,801 | 14,877,238 | 17,753,101 | 37,685,365 | 108,169,742 | | Free cash flow | | | -804,598 | 193,155 | -1,732,620 | | | -2,015,672 | -3,258,964 | 1,331,764 | 8,621,739 | 12,387,298 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | -0.52% | 20.72% | | | -42.73% | -27.46% | 8.48% | 34.30% | 39.42% | | Operating margin | | | | 6.95% | 22.71% | | | -40.11% | -26.64% | 7.41% | 32.70% | 36.79% | | Return on equity | | | -67.93% | -0.59% | 12.39% | -12.85% | -8.90% | -32.05% | -17.69% | 6.52% | 23.45% | 15.45% | | Return on assets | | | -15.36% | -0.24% | 7.07% | -6.69% | -5.04% | -18.19% | -12.54% | 4.85% | 20.07% | 14.38% | | Liabilities / equity | | | 1.85 | 0.68 | 0.25 | 0.39 | 0.41 | 0.48 | 0.22 | 0.19 | 0.10 | 0.05 | | Current ratio | | | 0.23 | 0.61 | 1.05 | 0.96 | 2.84 | 1.96 | 2.06 | 2.57 | 5.15 | 13.96 | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-14. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001030192.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q4 | 2022-12-31 | | 603,650 | | derived Q4 = FY annual - nine-month YTD | | 2023-Q1 | 2023-03-31 | | 44,186 | | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | 44,186 | | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 3,236,515 | | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 3,301,221 | | | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 3,777,401 | | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 5,898,938 | 2,155,814 | | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | 2,155,814 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 6,125,382 | | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 6,153,287 | 1,989,508 | | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 7,587,766 | 2,556,441 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 7,278,536 | 1,608,979 | 0.12 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 9,476,739 | 2,767,458 | 0.20 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 11,081,272 | 2,974,558 | 0.20 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 14,569,706 | 9,364,679 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 14,482,286 | 6,387,992 | 0.40 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - 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[NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1030192/000165495426004833/idr_10q.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-05-14 Report date: 2026-03-31 ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Plan of Operation Idaho Strategic is a gold producer and critical minerals exploration company focused on a diversified asset base and cash flows from operations. Its portfolio of mineral properties are located in the historic producing silver and gold districts of the Coeur d’Alene Mining region of north Idaho and the Elk City region of north-central Idaho, as well as the historic REE-Th Belt located near the city of Salmon in central Idaho. The Company’s plan of operation is to generate positive cash flow, increase its gold production and asset base over time while being mindful of corporate overhead. The Company’s management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a focus on gold production and critical minerals exploration. The Company’s gold properties include: the Golden Chest (currently in production), and the New Jersey Mill (majority ownership interest), as well as the Little Baldy and Niagara exploration properties and other less advanced properties. The Company’s primary focus as it relates to its gold properties is to continue to grow production at the Golden Chest Mine and look to reinvest the cash flow into both the Golden Chest, the New Jersey Mill, and furthering its exploration efforts near the Golden Chest, as well as at its REE properties. In addition to its gold properties, Idaho Strategic has three REE exploration properties in Idaho known as Mineral Hill, Lemhi Pass, and Diamond Creek. The Company’s expansion into REE’s came about in an effort to diversify its holdings towards the anticipated demand for these elements in advanced robotics, low-carbon technologies, and a renewed focus on the United States’ domestic critical minerals supply chain security for national defense. To date, Idaho Strategic has conducted numerous exploration programs on its REE properties which include mapping, sampling, trenching, and drilling of certain areas within the Company’s 21,385-acre landholdings. Idaho Strategic has been able to leverage its track record of operations and experience in mining, milling, and exploring at the Golden Chest to develop relationships with different state government agencies, universities, national labs, and other government and non-government entities to advance its REE exploration activities on multiple fronts. Idaho Strategic plans to continue to look for additional partnerships to find mutually beneficial solutions to advance the U.S.' domestic REE supply chain. Critical Accounting Estimates The Company has three critical accounting estimates. The ounces of gold contained in process and concentrate inventory is based on assays taken at the time the ore is processed and the ounces of gold contained in shipped concentrate which is based upon assays taken prior to shipment, however, subject to final assays at the refinery, these shipments are also subject to the fluctuation in gold prices between shipment date and estimated and actual final settlement date. Additionally, the reclamation bond obligation on the Company’s balance sheet is based on an estimate of the future cost to recover and remediate its properties as required by permits upon cessation of operations and may differ when operations are actually ceased. Finally, the amortization of development costs at the Golden Chest Mine is based on an estimate of reserves and measured and indicated resources calculated annually by the Company’s mine engineers. The Company’s concentrate sales sometimes involve variable consideration, as they can be subject to changes in metals prices between the time of shipment and their final settlement. However, the Company can reasonably estimate the transaction price for the concentrate sales at the time of shipment using forward prices for the estimated month of settlement, and previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement for financial reporting purposes. The embedded derivative contained in the Company’s concentrate sales is adjusted to fair value through earnings each period prior to final settlement. It is unlikely a significant reversal of revenue for the concentrate receivable will occur upon final settlement of the lots. As such, the Company uses the expected value method to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At March 31, 2026, metals that had been sold but not finally settled included 7,819 ounces of which 7,102 ounces were sold at a predetermined price with the remaining 717 exposed to future price changes until prices are locked in based on the month of settlement. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable. 15 Table of Contents The asset retirement obligation and asset on the Company’s balance sheet is based on an estimate of the future cost to recover and remediate its properties as required by permits upon cessation of operations and may differ when operations are actually ceased. At March 31, 2026 the Company reviewed its December 31, 2025 estimate that the cost of the machine and man hours probable to be needed to put its properties in the condition required by permits once operations are ceased. The March 31, 2026 estimated costs would be $104,000 for the Golden Chest Mine property and $224,000 for the New Jersey Mine and Mill. For purposes of the estimate, the Company evaluated the expected life in years and costs that, initially, are comparable to rates that it would incur at the present. An expected present value technique is used to estimate the fair value of the liability. This includes inflating the estimated costs in today’s dollars using a reasonable inflation rate up to the date of expected retirement and discounting the inflated costs using a credit-adjusted risk-free rate. Upon initial recognition of the liability, the carrying amount of the related long-lived asset is increased by the same amount. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is amortized over the life of the related asset. The Company is adding to the liability each year, and amortizing the asset over the estimated life, which decreases net income in total each year. Changes resulting from revisions to the timing or amount of the original estimate of undiscounted cash flows are recognized as either an increase or a decrease in the carrying amount of the liability for an asset retirement obligation and the related asset retirement cost capitalized as part of the carrying amount of the related long-lived asset. Upward revisions of the amount of undiscounted estimated cash flows are discounted using the current credit-adjusted risk-free rate. Downward revisions in the amount of undiscounted estimated cash flows are discounted using the credit-adjusted risk-free rate that existed when the original liability was recognized. The Company reviews, on an annual basis, unless otherwise deemed necessary, the asset retirement obligations. Separately, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and able to be reasonably estimated. Amortization of development costs is calculated using the units-of-production method over the expected life as per the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 360-10-35-4. This includes the cost to define proven and probable reserves and measured and indicated resources accessible via the Main Access Ramp (“MAR”). Measured resources are 90-100% interpolated, and indicated resources 75-80% interpolated, using a 2 grams per tonne gold cut-off grade at the diluted minimum mining width. Conservative estimation parameters (three samples within 25 meters for measured, two within 50 meters for indicated) and economic factors ensure viability. Inferred resources are excluded to reduce uncertainty, and therefore, the volumes are risk-adjusted. Assumptions are regularly evaluated, with material deviations disclosed to ensure a systematic and rational cost allocation. More information on the Company’s reserves and resources can be found in the Technical Report Summary For the Golden Chest Mine which was included as Exhibit 96.1 to the Company’s Form 10-K filed with the Securities and Exchange Commission on March 23, 2026. Highlights during the first quarter of 2026 include: REE Exploration · Exploration plans for the 2026 field season were finalized during the quarter. The bulk of the Company’s REE exploration efforts are planned for high-grade prospects at both its Mineral Hill and Lemhi Pass projects. To support these programs, IDR has retained the help of a seasoned REE exploration geologist following his successful initial consulting stint with the Company in 2025. Golden Chest/Operations · At the Golden Chest, ore mined from underground stopes totaled approximately 11,290 tonnes with all of the tonnage coming from H-Vein stopes. · During the quarter, a total of 193 meters of development was completed in the MAR and associated workings including an escapeway/ventilation raise. A quarterly record of 4,008 cubic meters of cemented rockfill (“CRF”) backfill was placed during the quarter. · For the quarter ended March 31, 2026, a total of 11,290 dry metric tonnes (“dmt”) were processed at the Company’s New Jersey Mill with a flotation feed head grade of 9.68 gpt gold and gold recovery of 92.1%. · Some long lead items for the new mill at the Golden Chest were delivered such as a jaw crusher and a cone crusher. Additional underground mining equipment including two 4-yard LHDs were delivered to the mine during the first quarter. · An exploration program consisting of surface and underground core drilling was continued during the first quarter at the Golden Chest. A total of 8,700 meters of drilling was completed at the Golden Chest targeting the Paymaster, the Red Star, Katie-Dora, and the H-vein. Results of Operations Idaho Strategic’s financial performance during the quarter is summarized below: · Revenue increased 99% to $14,482,286 from $7,278,536 for the three-month periods ended March 31, 2026 and 2025 respectively. The increase in revenue was 97% due to the increased average gold price realized on ounces sold which was $4,702.04 in the first quarter of 2026 and $2,848.74 in the first quarter of 2025. The remaining 3% of the increased revenue was from producing 334 more ounces of gold. · Gross profit as a percentage of sales increased from 50.8% in the first quarter of 2025 to 66.1% in the first quarter of 2026. · Exploration expense was almost unchanged in the first quarter of 2026 when compared to 2025. In the current quarter, the Company capitalized $960,713 of core drilling costs at the Golden Chest, compared to $0 in the first quarter of 2025. · Operating income for the three-month period ended March 31, 2026 was $7,582,160 which is an increase of 441.1% from operating income of $1,401,254 in the first quarter of 2025. The increase is due to the increase in realized gold prices on ounces sold, while keeping cost increases as low as possible. · Other income decreased $44,247 from income of $190,597 in the first quarter of 2025, to income of $146,350 in the same period in 2026. The decrease was from one-time losses sustained when liquidating the Company’s equity and mutual fund investments, which was slightly offset by increased interest income from US treasuries. · Net income for the three-month period ended March 31, 2026 was $6,369,190 compared to $1,591,851 in 2025. The increase in net income is largely due to the increased realized gold price on ounces sold while also pr [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Plan of Operation Idaho Strategic is a gold producer and critical minerals exploration company focused on a diversified asset base and cash flows from operations. Its portfolio of mineral properties are located in the historic producing silver and gold districts of the Coeur d’Alene Mining region of north Idaho and the Elk City region of north-central Idaho, as well as the historic REE-Th Belt located near the city of Salmon in central Idaho. The Company’s plan of operation is to generate positive cash flow, increase its gold production and asset base over time while being mindful of corporate overhead. The Company’s management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a focus on gold production and critical minerals exploration. The Company’s gold properties include: the Golden Chest (currently in production), and the New Jersey Mill (majority ownership interest), as well as the Little Baldy and Niagara exploration properties and other less advanced properties. The Company’s primary focus as it relates to its gold properties is to continue to grow production at the Golden Chest Mine and look to reinvest the cash flow into both the Golden Chest, the New Jersey Mill, and furthering its exploration efforts near the Golden Chest, as well as at its REE properties. In addition to its gold properties, Idaho Strategic has three REE exploration properties in Idaho known as Mineral Hill, Lemhi Pass, and Diamond Creek. The Company’s expansion into REE’s came about in an effort to diversify its holdings towards the anticipated demand for these elements in advanced robotics, low-carbon technologies, and a renewed focus on the United States’ domestic critical minerals supply chain security for national defense. To date, Idaho Strategic has conducted numerous exploration programs on its REE properties which include mapping, sampling, trenching, and drilling of certain areas within the Company’s 21,385-acre landholdings. Idaho Strategic has been able to leverage its track record of operations and experience in mining, milling, and exploring at the Golden Chest to develop relationships with different state government agencies, universities, national labs, and other government and non-government entities to advance its REE exploration activities on multiple fronts. Idaho Strategic plans to continue to look for additional partnerships to find mutually beneficial solutions to advance the U.S.' domestic REE supply chain. Critical Accounting Estimates The SEC has requested that all registrants address their most critical accounting policies. The SEC has indicated that a “critical accounting policy” is one which is both important to the representation of the registrant’s financial condition and results and requires management’s most difficult, subjective, or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain. The Company bases its estimates on experience and on various other assumptions that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results will differ and may differ materially from these estimates under different assumptions or conditions. Additionally, changes in accounting estimates could occur in the future from period to period. Company management has discussed the development and selection of the most critical financial estimates with the Audit and Finance Committee of the Company’s Board of Directors. The following paragraphs identify the most critical accounting policies: The Company’s concentrate sales sometimes involve variable consideration, as they can be subject to changes in metals prices between the time of shipment and their final settlement. However, the transaction price can be reasonably estimated for the concentrate sales at the time of shipment using forward prices for the estimated month of settlement, and previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement for financial reporting purposes. The embedded derivative contained in the Company’s concentrate sales is adjusted to fair value through earnings each period prior to final settlement. It is unlikely a significant reversal of revenue for any one concentrate lot will occur. As such, the expected value method is used to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At December 31, 2025, metals that had been sold but not final settled included 6,103 ounces of gold of which 5,089 ounces were sold at a predetermined price with the remaining 1,014 ounces exposed to future price changes until prices are locked in based on the month of settlement. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable. 39 Table of Contents The asset retirement obligation and asset on the balance sheet is based on an estimate of the future cost to recover and remediate Company properties as required by permits upon cessation of operations and may differ when operations actually cease. At December 31, 2025, the Company made an estimate that the cost of the machine and man hours probable to be needed to put its properties in the condition required by permits once operations cease would be $104,000 for the Golden Chest Mine property and $224,000 for the New Jersey Mine and Mill. For purposes of the estimate, the Company evaluated the expected life in years and costs that, initially, are comparable to rates that would be presently incurred. The Company is adding to the liability each year, and amortizing the asset over the estimated life, which decreases net income in total each year. Periodic reviews are made of the remaining life of the mine and other operations, and the estimated remediation costs upon closure, and account balances are adjusted accordingly. At this time, the Company thinks that an adjustment in its asset recovery obligation is not required, and an adjustment in future periods would not have a material impact in the year of adjustment but would change the amount of the annual accretion and amortization costs charged to expenses by an undetermined amount. Amortization of development costs is calculated using the units-of-production method over the expected life as per the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 360-10-35-4. This includes the cost to define proven and probable reserves and measured and indicated resources accessible via the Main Access Ramp (“MAR”). Measured resources are 90-100% interpolated, and indicated resources 75-80% interpolated, using a 2 grams per tonne gold cut-off grade at the diluted minimum mining width. Conservative estimation parameters (three samples within 25 meters for measured, two within 50 meters for indicated) and economic factors ensure viability. Inferred resources are excluded to reduce uncertainty, and therefore, the volumes are risk-adjusted. Assumptions are regularly evaluated, with material deviations disclosed to ensure a systematic and rational cost allocation. More information on the Company’s reserves and resources can be found in the Technical Report Summary For the Golden Chest Mine which is included as Exhibit 96.1 to this Form 10-K. Golden Chest Highlights for 2025 include: · Produced a total of 12,538 ounces of gold contained in concentrates and doré. · Mining was focused on the high-grade H-Vein at the Golden Chest mine. · Mined 41,840 tonnes of ore from the H-Vein underground at the Golden Chest Mine at an average grade of 10.14 gpt gold and completed 315 meters of development on the MAR and 116 meters of related development for sumps, muck-bays, and escape raises. Additionally, about 700 meters of stope access ramps were completed during the year. · Processed 41,840 dry metric tonnes at the Company’s New Jersey Mill with an average gold head grade of 10.14 gpt and gold recovery of 93.0%. · Completed 19,362 meters of core drilling at the Golden Chest at the Paymaster, H-Vein, Red Star, Jumbo, and Klondike areas. About half of the meterage was dedicated to converting Paymaster Mineral Resources to Mineral Reserves. · A highlight of 2025 exploration was drifting from the Jumbo Pit portal that intercepted the Jumbo vein and found 25 meters of vein strike length with an average thickness of 0.52 meters at a gold grade of 85 gpt. REE Exploration Highlights for 2025 include: · During the year the Company executed a long-term lease agreement for the mineral claims comprising approximately 1,500 acres of various in-holdings within the Company’s Mineral Hill and Lemhi Pass REE projects. Key prospects covered by the mineral claims leased by the Company include Cardinal (Mineral Hill), Lucky Horseshoe (Lemhi Pass, Idaho), Silver Queen (Lemhi Pass, Idaho), Last Chance (Lemhi Pass, Montana), Trapper (Lemhi Pass, Montana), and other prospects. Later in the year, Idaho Strategic sampled greater than 17.6% total REEs from the Cardinal prospect. · Idaho Strategic announced the signing of a Memorandum of Understanding with Clean Core Thorium Energy, Inc. (“CCTE”) to evaluate the feasibility of thorium mining, processing, and fuel fabrication to facilitate a “Made in America” thorium-based nuclear fuel supply chain utilizing thorium from the Company’s Lemhi Pass project and CCTE’s ANEEL fuel- an advanced nuclear fuel comprised of thorium and high assay low-enriched uranium for use in existing nuclear reactors. · The Company announced the discovery of a carbonatite with strong REE mineralization at the Lucky Horseshoe prospect within the Lemhi Pass project. Initial samples taken from outcrop assayed up to 6.14% total rare earth oxides with ratios of 65% magnet rare earth oxides (Nd, Pr, Dy, Tb) and 11% SEG oxides (Sm, Eu, Gd). · Idaho Strategic initiated a large-scale geophysics program across its Mineral Hill and Lemhi Pass projects including LiDAR, magnetics, and radiometrics surveys. · The Company initiated a soil sampling program covering many key prospects across the Idaho portion of its Lemhi Pass project. Initial success of the program at identifying areas of anomalous REEs in soils has led to an extension of the project scope. Soil sampling work will be utilized to aid in the planning of drill programs and other future exploration work. · Idaho Strategic completed its inaugural phase 1 drill program at a single prospect at Lemhi Pass. The program drilled 2,056 meters during the fourth quarter with logging and sampling ongoing. 40 Table of Contents Results of Operations Idaho Strategic’s financial performance for the years ended December 31, 2025, and 2024 is summarized below: · Revenue from concentrate sales increased 64.6% to $42,406,253 for the year ending December 31, 2025, compared to $25,765,373 for the comparable period in 2024. The increase was due to 665 more ounces of gold sold during the year, as well as higher realized gold prices recognized on concentrate sales. Realized gold price for 2025 was $3,583.43 vs $2,306.86 in 2024. Ore from the H-vein is anticipated to be the primary source of ore for 2026 as it was in 2025. · Gross profit for the year ended December 31, 2025 was $26,205,927 compared to a gross profit of $12,950,493 in 2024. This resulted in an increase in gross profit as a percentage of sales from 50.3% in 2024 to 61.8% in 2025. This increase is attributable to the higher head grade from H-Vein ore processed at the Company’s New Jersey Mill, as well as higher gold prices recognized on concentrate sales. · Net income for the year ended December 31, 2025 was $16,631,198 compared to net income for the year ended December 31, 2024 of $8,753,377. The increase was primarily due to higher gold prices. · The consolidated net income included non-cash charges of $4,556,936 ($1,973,746 in 2024) as follows: depreciation and amortization of $2,338,100 ($1,953,388 in 2024), accretion of asset retirement obligation of $20,042 ($18,761 in 2024), loss on disposal of equipment of $343,945 ($1,431 in 2024), equity income on investment in Buckskin Gold and Silver, Inc. $3,646 ($2,667 in 2024), write down of reclamation bond $0 ($300 in 2024) stock-based compensation of $1,505,244 ($0 in 2024), unrealized gain on equity securities and mutual funds of $110,092 ($0 in 2024), amortization of discount on US treasury notes of $37,197 ($2,080 in 2024), and accrued income tax liability of $426,146 ($0 in 2024). · Cash cost per ounce increased $116.80 compared to 2024 due to slightly higher input costs. · All-in sustaining cost per ounce increased $417.74 compared to 2024 due to increased exploration at the Golden Chest which also increased sustaining capital. Adjusted all-in sustaining cost per ounce without exploration was $1,494.75 and $1,256.16 for 2025 and 2024, respectively. · Gold sales receivable increased to $3,912,922 from $1,578,694 at December 31, 2025 compared to 2024. · The Company saw an increase in exploration expenses of $4,716,900 for 2025 due to the expanded drilling program at the Golden Chest mine for development and exploration purposes. 41 Table of Contents Cash Costs and All-In Sustaining Costs Reconciliation to Generally Accepted Accounting Principles (“GAAP") Reconciliation of cost of sales and other direct production costs and depreciation, depletion, and amortization (GAAP) to cash cost per ounce and All-In Sustaining Costs (“AISC”) per ounce (non-GAAP). The table below presents reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion, and amortization to the non-GAAP measures of cash cost per ounce produced and AISC per ounce produced for the Company’s gold production for the years ended December 31, 2025, and 2024. The cost per ounce calculations are based on ounces produced. Upon sale, the Company typically receives payment at an average rate of 94% of ounces produced after smelting and refining charges are deducted. Cash cost per ounce is an important operating measure that we utilize to measure operating performance. AISC per ounce is an important measure that we utilize to assess net cash flow after costs for pre-development, exploration, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold do not capture all the expenditures incurred to discover, develop, and sustain gold production. During 2024, the Company adjusted the method of calculating sustaining capital to better reflect actual costs required to sustain mining operations. Prior periods have been restated in the table below to reflect this change. Idaho Strategic calculates sustaining capital by including depreciation and amortization as an estimate of property, plant, and equipment wear and tear necessary to maintain production capacity, plus Golden Chest capitalized development costs, net of current period amortization, to reflect expenses for sustaining mine access and gold production. December 31, 2025 2024 Cost of sales and other direct production costs and depreciation, depletion, and amortization $ 16,200,326 $ 12,814,880 Less depreciation, depletion, amortization and stock-based compensation (3,265,706 ) (1,953,388 ) Change in inventory (65,188 ) (23,243 ) Cash Cost $ 12,869,432 $ 10,838,249 Exploration 7,637,435 2,920,535 Less non-gold exploration and stock-based compensation (2,659,417 ) (324,333 ) Sustaining capital 5,974,247 3,385,893 General and administrative 1,092,822 763,040 Less stock-based compensation and other non-cash items (769,124 ) (20,058 ) AISC $ 23,719,249 $ 17,563,326 Divided by ounces produced 12,538 11,915 Cash cost per ounce $ 1,026.43 $ 909.63 AISC per ounce $ 1,891.79 $ 1,474.05 Financial Condition and Liquidity For the Years Ended December 31, Net cash provided (used) by: 2025 2024 Operating activities $ 19,101,691 $ 10,840,886 Investing activities (61,458,139 ) (20,762,889 ) Financing activities 51,139,312 8,741,905 Net change in cash and cash equivalents 8,782,864 (1,180,098 ) Cash and cash equivalents, beginning of period 1,106,901 2,286,999 Cash and cash equivalents, end of period $ 9,889,765 $ 1,106,901 The Company has retained earnings of approximately $8.3 million at December 31, 2025 and earned a consolidated net profit in 2025 of $16,631,198. The Company’s working capital at December 31, 2025 is $47,669,136. The Company is currently producing from underground at the Golden Chest. During 2025, production generated positive cash flow from operations of $19,101,691 compared to a positive cash flow from operations of $10,840,886 in 2024. Planned production for the next 18 months indicates a positive cash flow from operations will continue as underground mining of the H-Vein and Jumbo vein remains the primary source of ore feed for the mill. In prior years, the Company has been successful in raising required funds for ongoing operations from sale of its common stock or borrowing. Management believes it can meet its contractual obligations with continuing cash flows from operations, existing cash, and potential financings for the next 18 months.