Geodrill loses $1.5-million (U.S.) in Q3 2025

Mr. Greg Borsk reports GEODRILL ANNOUNCES THIRD QUARTER 2025 FINANCIAL RESULTS Geodrill Ltd. has released its financial results for the three- and nine-month period ended Sept. 30, 2025. All figures are reported in United States dollars, unless otherwise indicated. Geodrill's financial statements are prepared in accordance with international financial reporting standards (IFRS). Financial overview Q3 2025: Generated revenue of $39.0-million, a 14-per-cent increase compared with Q3 2024; Delivered gross profit of $2.4-million compared with gross profit of $8.4-million for Q3 2024; EBITDA (earnings before interest, taxes, depreciation and amortization) totalled $4.3-million, or 11 per cent of revenue, compared with $7.6-million or 22 per cent of revenue for Q3 2024; Reported a net loss of $(1.5)-million, or (three cents) per share, compared with a profit of $2.6-million, or six cents per share for Q3 2024; EBITDA and net loss were favourably impacted by the expected lifetime credit recovery of $100,000, foreign exchange gain of $800,000 and $1.8-million gain on equity investments; Ended the quarter with net cash of $11.1-million (excluding lease liabilities). Operational and strategic Q3 2025: South American expansion continues, with rig count increasing to 19 rigs across the region to support major multiphase contracts that commenced in Q3 2025; West Africa shows strong postwet season demand; Surface drill programs in Egypt are restarting in Q4 2025, expected to drive regional performance; Multiyear, multirig contracts remain active, providing a solid foundation for revenue growth and profitability over the next three to five years; Achieved 7.8 million man hours LTI free. Outlook: Demand for drilling services remains strong; the business is resilient despite continuing tariff pressures; High gold and copper prices continue to fuel drilling activity; A highly active bidding pipeline signals sustained industry interest and future growth opportunities. "While the third quarter presented operational challenges, our year-to-date results reflect the underlying strength and resilience of our business model. Over the first nine months, we have delivered solid performance, maintained financial discipline and continued to position Geodrill for long-term value creation. We remain focused on execution and are confident in our ability to navigate strategic expansion while building on the strong foundation we have established over the years," said Greg Borsk, chief financial officer of Geodrill. "This quarter underscores the complex realities of strategic expansion. We have successfully doubled our rig count in South America, a move that reflects our commitment to long-term growth despite short-term cost absorption. Our focus remains on building a resilient, geographically diversified platform capable of delivering consistent performance across seasonal and regional cycles," said Dave Harper, president and chief executive officer of Geodrill. "We are not driven by quarterly volatility -- we are executing a deliberate strategy to position the company for sustained operational excellence and long-term shareholder value." Geodrill's consolidated financial statements and management's discussion and analysis (MD&A), for the three-month and nine-month period ended Sept. 30, 2025, are available via Geodrill's website and will be available on SEDAR+. Following the release, management of the company will host a conference call at 10 a.m. ET to discuss the financial results. Q3 2025 conference call information Date and time:  Thursday, Nov. 13, at 10 a.m. ET Telephone:  toll-free (North America) 1-888-699-1199; local 1-416-945-7677 Conference ID:  06315 followed by the pound key Conference call replay Telephone:  toll-free replay (North America) 1-888-660-6345; local replay 1-289-819-1450 Entry code:   06315 followed by the pound key The conference call replay will be available from 12 p.m. ET on Nov. 20, 2025 until, 11:59 p.m. ET. About Geodrill Ltd. Geodrill has been successful in establishing a leading market position in Ghana and Ivory Coast. The company also operates in other African jurisdictions including Egypt and Senegal, and is expanding its geographic presence in the South America countries of Chile and Peru. With the large fleet of multipurpose rigs, Geodrill provides a broad selection of diverse drilling services, including exploration, delineation, underground and grade control drilling, to meet the specific needs of its clients. The company's client mix is made up of senior mining, intermediate and junior exploration companies. Geodrill has 47,163,170 common shares outstanding. We seek Safe Harbor.