Starcore Reports Q3 Results

• Latest release (2026-03-02): Starcore reports Q3 results signaling a return to full production at the San Martin mine in Mexico. Key takeaways include earnings from mining operations of $6.2 million (and $10.4 million for the nine months), positive cash flow of over $8.4 million, and cash and cash equivalents of $12.4 million as of January 31, 2026. Gold and silver sales were $13.5 million; EBITDA for the nine months ended January 31, 2026 was $4.0 million. Gold-equivalent production was 2,162 ounces for the period, with mine operating cash costs of $2,394 per equivalent ounce and AISC of $3,554 per equivalent ounce. CEO commentary highlights a near-term ramp in monthly production due to equipment installations processing higher-grade carbonaceous ore, with expectations of continued improvement.
• Prior material events (context and progression):
• 2026-02-17: Starcore reported Q3 2026 production results showing a material, quarter-over-quarter uptick and meeting budget targets; exploration and processing improvements indicated ongoing operational turnaround.
• 2026-02-02: Spin-out announcement: plan to distribute Africa-related mineral properties to EU Gold Mining Inc. (1 Starcore share for 2 EU Gold shares), enabling Starcore to focus on Mexican assets; governance notes and strategic rationale emphasize concentrating on San Martin and La Tortilla.
• 2025-12-15 and earlier: Mixed quarterly results with a stance that Q2-Q3 improvements and ongoing cost management would drive future profitability; private placements and financing activity occurred to support growth and Tortilla project exploration.
• 2025-10 to 2025-07: Financing activity (private placements oversubscribed) and development of Tortilla (Tortilla lease finalized in mid-2025), plus Q1-Q2 exploration work in Ivory Coast (Kimoukro and Tortilla-related projects) and spin-out-related strategic planning.
• Investor presentation (Feb 2025): San Martin is the flagship asset, with 104,962 AuEq ounces in reserves/resources (as of April 30, 2024) and a plan to expand through exploration and potential acquisitions; Ivory Coast portfolio components (Kimoukro, Tiebissou, Oume) noted with a strategy to leverage EU Gold for Africa-focused growth and a higher-value, separate listing structure.
• Corporate actions and governance: 2025-10-24 AGM results include director appointments and plan-of-arrangement for the Ivory Coast spin-out; 2025-10-15 Tortilla silver project lease secured (ten-year), with net smelter royalty and options to purchase; 2025-10-08 and 2025-08-26 private placements and investor participation metrics; 2025-07-14 and 2025-07-10 Tortilla project LOI and historical context releases.

Material impact assessment - Overall assessment: Positive, but not a game changer. The latest Q3 results confirm operational stability and a meaningful improvement path after earlier production issues and preg-robbing challenges. The new Q3 metrics (positive EBITDA, operating cash flow, and higher production) align with management's stated trajectory and the prior interim updates. The March 2 release provides confirmation of the ongoing turnaround rather than an unexpected, outsized catalyst. - How it lines up with expectations: The Q3 update reinforces the ongoing improvement trend seen in late 2025 and early 2026, including higher earnings from mining operations, improved cash flow, and a ramp in monthly production anticipated from processing higher-grade carbonaceous ore. The ongoing ramp and the continuation of the San Martin operation are consistent with prior guidance and management commentary. - Improvements vs misses: Improvement in production metrics and cash generation is positive relative to prior quarters with impairment and recovery challenges; however, margins remain sensitive to unit costs, ore grade, and the effectiveness of carbonaceous ore processing (CIL). The all-in sustaining costs (AISC) at $3,554/EqOz reflect ongoing cost management but also highlight that profitability remains contingent on sustained production gains and commodity prices. - Corporate actions interplay: The February spin-out of African assets to EU Gold Mining Inc. supports Starcore's strategic refocusing on its Mexican operations, potentially streamlining governance and capital allocation. The spin-out may limit downside risk from Ivory Coast exploration and diversify investor exposure, albeit the Tortilla project and related moves remain a near-term optionality.

What to watch next (immediate, 3-6 Months) - Immediate (next weeks to months): - Spin-out execution and distribution (EU Gold Mining Inc. related) and any related market liquidity or ownership changes (the plan and press materials indicate a March 5, 2026 distribution date; this is a near-term event to monitor for price and ownership effects). - Q4 2026 results and Q4 production updates from San Martin: additional evidence of sustained production ramp and cost discipline. - 3-6 months: - Tortilla project development and any NI 43-101 updates or new metallurgical results from ongoing Ivory Coast exploration; potential strategic milestones tied to EU Gold’s Africa-focused execution and Starcore’s Mexican asset focus. - Further drilling results and plant optimization updates at San Martin (CIL optimization, cyanide destruction module progress, and ore-feed variability). - Private placement reconciliation and potential new fundraising at favorable terms if market conditions or stock performance improves; monitoring for any changes in warrants and options outstanding. - Any updates to management or governance that might affect execution capability or strategic direction.

Conclusion on Materiality - Materiality rating for the most recent news (2026-03-02): Routine - Positive. The release confirms the ongoing operational improvement and cash generation, building on prior updates, but it does not constitute a fresh, market-moving surprise relative to the trajectory outlined in prior quarters. The near-term material catalyst remains the March 5, 2026 distribution related to the Africa spin-out, which is outside the March 2 release itself but directly impacts equity structure and investor perception around Starcore’s value proposition.

Technical Analysis and Price Support Resistance Breakout levels - Price data: Price data not provided. - Therefore, technical trend, support/resistance levels, and breakout buy levels cannot be determined from the given data. If time-series data is provided later, we would: - Identify trend direction (up, down, or range-bound) from price series. - Define key supports from consolidations or swing lows and resistances from swing highs or tops. - Highlight any breakouts signaling entry points, particularly around the spin-out event timing or Q4 production milestones.

Company overview and flagship project - Flagship asset: San Martin gold-silver mine, Queretaro, Mexico (producing; ramping back to full production post-issues). - Production profile: Q3 2026 results show improved earnings from mining operations and a positive cash flow trajectory. - Other asset: Tortilla project (San Juan Nepomuceno) in Queretaro, Mexico, with a ten-year lease and 2% NSR after lease payments; potential for future development via Tortilla project (Jection to create value via private arrangements and NI 43-101 work). - Ivory Coast exploration portfolio: Kimoukro, Tiebissou, and Oume permits; ongoing exploration, IP/geophysical surveys, auger drilling campaigns, and potential Austrian (EU Gold) spin-out alignment.

Capital structure including financings and levels - Outstanding shares: 66,863,517. - Warrants outstanding (various tranches; expiry dates and exercise prices): - 5,323,577 warrants at $0.35 (exp 2027-09-26) - 4,676,422 warrants at $0.35 (exp 2027-10-28) - 3,333,333 warrants at $0.25 (exp 2026-06-07) - 183,680 warrants at $0.35 (exp 2026-09-26) - 184,719 warrants at $0.35 (exp 2026-10-28) - Financing activity: - 2025-08-26 and 2025-10-08/10-28 financings; private placements largely oversubscribed, with multiple tranche closings and finders’ warrants; total gross proceeds up to around $5 million across tranches. - The 2025-10-28 private placement (unit price $0.25) included 20 million units; 2-year warrants with $0.35 exercise price; hold period four months plus one day. - Notable investments and investments in other entities: - Westward Gold Inc. (WG) investment disclosed in late 2024 and ongoing; value tracked in interim statements. - EU Gold Mining Inc. spin-out (Africa-focused) with Starcore shareholders receiving EU Gold shares; potential strategic value if Africa assets mature; distribution timing around March 2026. - Royalties/NSR: 2% NSR on Tortilla project after lease payments; NSR and other royalties embedded in known projects (El Creston, Tortilla, etc.).

Strategic investors - Westward Gold Inc. holding and unrealized value shown in Starcore’s interim statements. - EU Gold Mining Inc. spin-out is a strategic corporate vehicle intended to unlock Africa assets; this is a structural move rather than a traditional equity investment. - Private placements indicate broad investor base (reported as from seven countries in one tranche), signaling diversified non-domestic interest.

Debt risk and capital needs - Company exhibits modest liquidity with cash on hand and working capital primarily funded through equity financings and private placements. - There is no explicit long-term debt disclosure in the provided summaries; rehabilitation and closure provisions exist (USD and CAD), reflecting environmental and site obligations. - The Africa spin-out and equity financings help fund expansion, but ongoing capital needs depend on sustaining San Martin production, completing Tortilla-related development, and any follow-on exploration in Ivory Coast. - The spin-out reduces exposure to African assets, potentially improving balance sheet clarity but also potentially reducing diversification benefits.

Key and hidden risks - Operational risk at San Martin: reliance on successful ramp-up for carbonaceous ore processing; preg-robbing remains a potential risk if unmitigated. - Ivory Coast exploration risk: exploration-stage assets in Kinoukro, Tiebissou, and Oume carry political, regulatory, and commercial risk; NI 43-101 disclosures are key to value realization. - Spin-out concentration risk: while mitigating some risk, the separation could reduce Starcore’s accessible cash flow or corporate synergies and may introduce pricing and liquidity constraints on EU Gold. - Financing risk: reliance on equity financings with warrant overhang; potential dilution on exercise of warrants. - Commodity price sensitivity: gold and silver prices directly affect revenue and margins, especially with AISC in the $2k-$3k per ounce band for carbonate ore; low price environments could pressure profitability. - Environmental liabilities: rehabilitation and closure provisions require ongoing funding and could rise with higher production or delays in site closure.

Final summary and takeaways - The most recent release confirms a positive operational trend at San Martin, with cash generation and an improving production profile. The spin-out of Africa-related assets to EU Gold Mining is a major strategic move designed to focus Starcore on its Mexican assets, while Electing Africa-focused growth under EU Gold may unlock further value if Ivory Coast projects advance. - The near-term catalyst is the March 5, 2026 distribution from the Africa spin-out, which will alter the company’s equity structure and investor perception. In the near term, San Martin production ramp and Tortilla exploration updates will be key to watch. - The stock outlook hinges on sustaining production improvements, cost control, and the successful execution of corporate structure changes (spin-out) and Tortilla project development, weighed against ongoing capital needs and geopolitical risks in exploration regions. - Without time-series price data, technical timing signals cannot yet be derived. Price data should be incorporated when available to refine breakout levels and support zones around the spin-out event and production milestones.

Appendix and Sources - Data period and sources: - Most recent news: 2026-03-02 Starcore Reports Q3 Results (SAN, SAM) - Prior material: 2026-02-17 Starcore Reports Third Quarter Production Results - Corporate action: 2026-02-02 Starcore Closes Spin-Out of African Properties for Issue of Capital Dividend - Financing activity: 2025-10-28 Starcore Closes Private Placement; 2025-10-08 and 2025-07-08 financing updates - Tortilla project: 2025-10-15 Finalizes Silver Mine Lease; 2025-07-10 LOI for Tortilla project - Tortilla/Kimoukro exploration: 2025-04-04 Kimoukro structural trends; 2025-03-27 Kimoukro geology and CIL/test work - Interim and audited financial statements: 2025-12-12 SEDAR Interim Financial Statements; 2025-12-12 SEDAR Interim MD&A; 2025-07-28 SEDAR Audited Annual Financial Statements - Investor presentation: February 2025 Starcore Corporate Presentation (SAM) covering San Martin, Ivory Coast exploration, and management background - Time period of data: News coverage from 2025-03-14 through 2026-03-02; Investor presentation dated Feb 2025; Public filings through mid-2025 and early 2026.

Notes - Price data not provided in the data set; consequently, the technical analysis cannot generate supports/resistances or breakout levels without time-series price data. - Financial statements provided include quarterly and interim reports with revenue, mine production, and cash positions; warrants outstanding, private placements, and spin-out mechanics documented in multiple releases.