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Dakota Gold Corp. 10-Q Summary: Q2 2025

Business Context and Reporting Period

This report covers the quarterly period ended June 30, 2025. Dakota Gold Corp. is a mineral exploration company focused on the Homestake District in South Dakota. The company operates in a single segment: Exploration and Evaluation. As of the reporting date, the company remains in the exploration stage with no commercial production or declared mineral reserves, except for a mineral resource estimate at the Richmond Hill Project. The company is classified as a Smaller Reporting Company and an Emerging Growth Company.

Key Financial Metrics

Material Changes vs. Prior Period

• Reduced Net Loss: The net loss for the six months ended June 30, 2025, decreased significantly to $10.21 million compared to $17.75 million in the same period in 2024. This improvement is primarily due to reduced exploration expenses.
• Exploration Expenses: Exploration costs dropped to $6.93 million (YTD 2025) from $12.97 million (YTD 2024). The decrease is attributed to a lower level of drilling activity in the first half of 2025, as the company focused on the Richmond Hill Initial Assessment.
• Capital Raise: In March 2025, the company completed a public offering raising net proceeds of approximately $32.7 million. Additionally, the company raised $7.3 million through its At-The-Market (ATM) program and $1.86 million from warrant exercises during the six-month period.
• Liquidity Improvement: Cash balances increased from $9.41 million at year-end 2024 to $41.97 million at June 30, 2025, driven by the successful equity financings.

Outlook, Management Commentary, and Risks

• Strategic Focus: Management is advancing the Richmond Hill Project toward feasibility and production, targeting completion in 2029. A revised Initial Assessment filed in July 2025 projects an after-tax NPV of $1.6 billion to $2.1 billion depending on the plan.
• Drilling Program: The 2025 drilling campaign began in April. As of June 30, 84 core holes totaling 35,491 feet were completed at Richmond Hill. Drilling at the Maitland project may resume later in the year pending technical analysis.
• Liquidity Outlook: With $42.0 million in cash and working capital of $39.7 million, management believes it has sufficient funds to operate for the next 12 months, with anticipated expenditures of approximately $25.0 million for the year ending December 31, 2025.
• Risks: The company faces standard exploration risks, including the uncertainty of discovering economically recoverable reserves, regulatory permitting delays, and the need for future capital to fund development. The company has no revenue and relies on equity financing.

Key Investor Verification Points

• Capital Sufficiency: Verify the company's ability to fund the $25 million annual budget and future feasibility studies without significant dilution, given the current cash balance of $42 million.
• Richmond Hill Assessment: Review the July 2025 updated Initial Assessment (filed as an 8-K) to understand the assumptions behind the projected NPV and IRR, noting these are not yet proven reserves.
• Option Agreements: Confirm the terms of the extended option agreements with Barrick Gold (Richmond Hill and Homestake options) extended to December 31, 2028, including the required annual cash payments.
• Drilling Results: Monitor upcoming drill results from the 2025 campaign to validate the resource model and potential for resource conversion.