Skeena Gold & Silver Confirms Eskay Creek Reaches 49% Completion & Provides Project Update; Initial Production Remains on Schedule for Q2 2027

Executive Summary

• Updated 2026 construction budget for the Eskay Creek Gold‑Silver Project increased to US$659 million (up $99 M vs. 2023 DFS) while incorporating leasing arrangements that offset $94 M of upfront costs.
• Project is 49% complete as of Feb 28 2026, with 66% of total project costs contractually committed and initial production still on schedule for Q2 2027; commercial production targeted for Q3 2027.
• Remaining development spend estimated at US$354 M (net of leasing), with peak construction spending of ~US$291 M in 2026 and the balance in 2027.

Key Details

• Construction Cost Update:
• 2023 DFS estimate: US$560 M (incl. $35 M contingency).
• Updated 2026 estimate: US$659 M (incl. $35 M contingency) → +US$99 M increase.

• Leasing of water‑treatment plant, high‑voltage electrical infrastructure and camp facilities reduces upfront CAPEX by ≈US$94 M.

• Project Progress (as of Feb 28 2026):

• Overall completion: 49% complete.
• Contractual cost commitments: 66% of total project costs.
• Process Plant Detailed Engineering: 92% complete (forecast finish Apr 2026).
• Procurement: 88% of costs committed; key equipment received.
• Process Plant Construction: 46% complete; concentrator building and critical‑path concrete finished, mechanical installation underway.
• Open Pit Mining: 3 M tonnes mined to date for construction material.
• Electrical Infrastructure: BC Hydro grid tap‑in completed; ~50% of overhead line installed.
• Water Treatment (Stage 1): Installation & dry commissioning complete; MRSA pond excavation finished late 2025.

• Permanent Camp: Earthworks cleared, utilities in progress; occupancy targeted July 2026.

• Major Construction Highlights:

• Initial large mining equipment mobilized and commissioned H1 2025.
• Tailings Facility access road completed H2 2025; dam construction slated for 2026.
• Assay Lab operational since 2024 (2‑year run).

• Access road bridge replacements finished H1 2025.

• Cost Drivers Behind the Increase:

• Inflationary pressures on labour, materials, and services.
• Revised BC water discharge standards & incorporation of Tahltan community values → enhanced water‑management infrastructure.
• Optimization of permanent camp location linked to Tailings Storage Facility layout.
• Design enhancements for reliability, safety, winter operations (e.g., mill building snow management, covered conical ore stockpile, upgraded dewatering capacity, HVAC & dust control).
• Updated high‑voltage electrical scope and substation engineering due to global equipment demand.
• Additional IBA‑related procurement and partnership commitments.

• Six‑month schedule extension incorporated in prior financing disclosure (June 25 2024).

• Remaining Construction Scope (pre‑production):

• Continue open‑pit mining for construction rock; commence ore mining & stockpiling Q4 2026.
• Widen haul road to Tailings Management Facility; complete Stage 1 TMSF dam.
• Advance water‑management ponds/diversions; finish Stage 1 & Stage 2 water treatment plants.
• Complete processing facility construction, mechanical completion testing, and pre‑commissioning.
• Finish Volcano Creek substation, 69 kV overhead line, and Eskay Creek substation; energize facilities with permanent grid power.
• Complete permanent camp build‑out.

Notable Quotes

• Randy Reichert, President & CEO: “Our strategy of initiating development activities well ahead of final permit receipt has delivered meaningful value for our shareholders… By acting early, we reduced project timeline risk and minimized inflationary impacts across key scopes by securing procurement contracts earlier.”