# EDGAR Filing Document

**Accession Number:** 0001853962
**File Stem:** 0001628280-23-007879
**Filing Date:** 2023-3
**Character Count:** 461429
**Document Hash:** 12994da9d175d176f8d9241e3c19aee9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-23-007879.hdr.sgml**: 20230314

**ACCESSION NUMBER**: 0001628280-23-007879

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 140

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230314

**DATE AS OF CHANGE**: 20230314

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** i-80 Gold Corp.
- **CENTRAL INDEX KEY:** 0001853962
- **STANDARD INDUSTRIAL CLASSIFICATION:** GOLD & SILVER ORES [1040]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41382
- **FILM NUMBER:** 23731788

**BUSINESS ADDRESS:**
- **STREET 1:** 5190 NEIL ROAD, SUITE 110
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89820
- **BUSINESS PHONE:** 1-888-346-1390

**MAIL ADDRESS:**
- **STREET 1:** 5190 NEIL ROAD, SUITE 110
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89820

?xml version="1.0" ? iaux-20221231

6-K 1 i80form6k.htm FORM 6-K

---

| |
|:---|
| &nbsp;&nbsp;**UNITED STATES** |
| &nbsp;&nbsp;**SECURITIES AND EXCHANGE COMMISSION** |
| &nbsp;&nbsp;Washington, D.C. 20549 |
| **FORM 6-K** |
| **REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934** |
| For the month of: March, 2023 |
| **Commission file number: 001-41382** |
| **i-80 Gold Corp.** |
| &nbsp;&nbsp;(Translation of registrant's name into English) |
| 5190 Neil Road, Suite 460, Reno, NV 89502 |
| &nbsp;&nbsp;(Address of principal executive offices) |
| &nbsp;&nbsp;Indicate by check mark whether the registrant files or will file annual reports under cover: ☐ Form 20-F ☒ Form 40-F |
| &nbsp;&nbsp;&nbsp;Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐ |
| &nbsp;&nbsp;&nbsp;Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐ |

---

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| Exhibit | Description |
| 99.1 | <u>[The Company's audited consolidated financial statements, together with the notes thereto and the auditors' reports](iaux-20221231_d2.htm)</u> (PCAOB ID Number 248) thereon. |
| 99.2 | <u>[Management's Discussion and Analysis for the fiscal year ended December 31, 2022](a2022q4i-80goldcorpmda.htm)</u> |
| 99.3 | <u>[Press Release dated March 14, 2022 - i-80 Gold Reports Q4 and Full Year 2022 Operating Results](a2022q4i-80goldcorppr.htm)</u> |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| Date: March 14, 2023 | /s/ Ryan Snow |
| | Ryan Snow |
| | Chief Financial Officer |

---

## Exhibit 99.1

?xml version="1.0" ? iaux-20221231_d2

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

Consolidated Financial Statements

December 31, 2022

(Stated in thousands of United States Dollars)

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Board of Directors and Shareholders

i-80 Gold Corp

**Opinion on the financial statements** 

We have audited the accompanying consolidated statement of financial position of i-80 Gold Corp (a British Columbia, Canada corporation) and subsidiaries (the "Company") as of December 31, 2022, the related consolidated statements of income/(loss) and comprehensive income/(loss), changes in equity, and cash flows for the year ended December 31, 2022, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its operations and its cash flows for the year then ended in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

**Basis for opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical audit matters**

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ GRANT THORNTON LLP

We have served as the Company's auditor since 2022.

Salt Lake City, Utah

March 14, 2023

------

**Independent auditor's report**

**To the Shareholders of i-80 Gold Corp**

**Opinion**

We have audited the consolidated financial statements of i-80 Gold Corp ("the Company"), which comprise the consolidated statements of financial position as at December 31, 2021, and the consolidated statement of income and comprehensive income, consolidated statement of changes in equity, and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

**Basis for Opinion**

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

**Key Audit Matters**

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

**Asset Exchange with Nevada Gold Mines LLC**

Refer to Note 1(b) of the consolidated financial statements.

On October 14, 2021, the Company completed an asset exchange with Nevada Gold Mines LLC ("NGM"). The Company acquired the Lone Tree and Buffalo Mountain mineral properties, as well as certain processing infrastructure and mining equipment in consideration for the Company's 40% ownership interest in the South Arturo property.

The asset exchange with NGM was determined to be a key audit matter given the significance of the transaction to the consolidated financial statements, the complexity of the accounting for transaction and that management's assessment process is complex, highly judgmental and includes high estimation uncertainty for the fair values of the net assets acquired.

Our audit procedures included, amongst other procedures:

• Review of the asset exchange agreement to identify and assess relevant terms and conditions;

• Assessment of the qualifications and objectivity of the third-party valuation expert utilized by the Company to complete the valuation report for the fair value of the net assets acquired in the exchange, as well as the purchase price allocation;

• Involvement of our internal valuation team to assess management expert's valuation report for the inputs and management's assumptions, including the valuation of property, plant and equipment acquired, comparable transactions used to value the mineral property assets, and applicable discount rates used to reflect the Company's weighted cost of capital;

• Assessment of the transaction for appropriate accounting under provisions of IFRS;

**Financing Package**

Refer to Notes 1(d), 10(i) and 10(ii) of the consolidated financial statements.

During the year, the Company entered into a financing package consisting of a two convertible loans, a gold prepay purchase and sale agreement, a silver purchase and sale agreement, and a gold offtake agreement. As at December 31, 2021, only the convertible debentures and offtake agreement were funded. As part of the financing package, the Company issued 5.5M common share purchase warrants.

The funded components of the financing package were determined to be a key audit matter given the significance of the transaction to the consolidated financial statements, and that the accounting for the financing package was complex and included high estimation uncertainty and significant management judgment with respect to valuing the different components of the package.

Our audit procedures included, amongst other procedures:

• Engagement of our financial instrument subject matter specialist to review the financing package agreements and accounting conclusions reached by management;

• Assessment of the qualifications and objectivity of the third-party valuation expert utilized by the Company to complete the valuation of the financing package and its components;

• Engagement of our internal valuation team to assess management expert's valuation report for the methodology applied, as well as the inputs and assumptions, including the volatility, credit spread, and discount rates and;

• Confirmation of the key terms of the financing package directly with the lender.

------

**Acquisition of Ruby Hill Mining Company LLC**

Refer to Note 1(b) of the consolidated financial statements.

On October 18, 2021, the Company acquired Ruby Hill Mining Company LLC ("Ruby Hill"). Ruby Hill has an operating open pit mine as well as other mineral property deposits for potential exploration and development. Consideration for the transaction included cash, common shares, and future milestone payments.

The Ruby Hill business acquisition was determined to be a key audit matter given the significance of the transaction to the consolidated financial statements, and that management's assessment process is complex, highly judgmental and includes estimation uncertainty for the fair values of the net assets acquired and the fair value of the contingent consideration.

Our audit procedures included, amongst other procedures:

• Review of the purchase agreement to identify and assess relevant terms and conditions;

• Assessment of the qualifications and objectivity of the third-party valuation expert utilized by the Company to complete the valuation report for the fair value of the net assets acquired in the exchange, as well as the purchase price allocation;

• Engagement of our internal valuation team to assess management expert's valuation report for the inputs and assumptions, including the valuation of property, plant and equipment acquired, comparable transactions used to value the mineral property assets, valuation of contingent consideration and applicable discount rates used to reflect the Company's weighted cost of capital;

• Assessment of the transaction for appropriate accounting under provisions of IFRS;

**Information Other than the Consolidated Financial Statements and Auditor's Report Thereon** 

Management is responsible for the other information. The other information comprises the Management Discussion and Analysis but does not include the consolidated financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

**Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements** 

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

**Auditor's Responsibilities for the Audit of the Consolidated Financial Statements** 

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

------

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because of the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Mark Irwin.

/s/ GRANT THORNTON LLP

Toronto, Canada &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chartered Professional Accountants

March 28, 2022 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licensed Public Accountants

We served as the Company's auditor from 2020 to 2021.

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**

(Stated in thousands of United States Dollars)

---

| | | | |
|:---|:---|:---|:---|
| | Note | **December 31,<br>2022** | December 31, 2021 |
| **ASSETS** |  |  |  |
| **Current assets** |  |  |  |
| Cash and cash equivalents |  | $**48276** | $87658 |
| Receivables |  | **623** | 393 |
| Inventory | 5 | **16535** | 26000 |
| Prepaids and deposits |  | **5595** | 4795 |
| Current portion of other assets | 6 | **6280** | 2650 |
| **Total current assets** |  | **77309** | 121496 |
| **Non-current assets** |  |  |  |
| Other assets | 6 | **2487** |  |
| Restricted cash and cash equivalents | 8 | **32902** | 30777 |
| Long-term receivable | 7 | **—** | 1427 |
| Property, plant and equipment | 9 | **529261** | 502649 |
| **Total non-current assets** |  | **564650** | 534853 |
| **Total assets** |  | $**641959** | $656349 |
| **LIABILITIES** |  |  |  |
| **Current liabilities** |  |  |  |
| Accounts payable |  | $**10622** | $8533 |
| Accrued liabilities |  | **6612** | 5533 |
| Current portion of long-term debt | 10 | **21288** | 58 |
| Current provision for environmental rehabilitation | 11 | **946** |  |
| Current portion of other liabilities | 12 | **46181** | 15795 |
| **Total current liabilities** |  | **85649** | 29919 |
| **Non-current liabilities** |  |  |  |
| Deferred tax liabilities | 21 | **8020** | 19853 |
| Long-term debt | 10 | **94588** | 41378 |
| Provision for environmental rehabilitation | 11 | **70680** | 92849 |
| Non-current portion of other liabilities | 12 | **49610** | 65372 |
| **Total non-current liabilities** |  | **222898** | 219452 |
| **Total liabilities** |  | **308547** | 249371 |
| **EQUITY** |  |  |  |
| Share capital | 13 | **354470** | 350198 |
| Reserves |  | **15042** | 13683 |
| Surplus / (deficit) |  | **(36100)** | 43097 |
| **Total equity** |  | **333412** | 406978 |
| **Total liabilities and equity** |  | $**641959** | $656349 |

---

Subsequent events (notes 10(v), 12(iv), 13(d), and 26)

*See accompanying notes to the Consolidated Financial Statements*

Approved by the Board of Directors and authorized for issue on March 14, 2023

---

| | |
|:---|:---|
| /s/ John Seaman | /s/ Ewan Downie |
| **John Seaman** | **Ewan Downie** |
| *Director* | *Director* |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**CONSOLIDATED STATEMENTS OF INCOME / (LOSS) AND COMPREHENSIVE INCOME / (LOSS)**

(Stated in thousands of United States Dollars, except for share data)

---

| | | | |
|:---|:---|:---|:---|
| | | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | Note | **2022** | 2021 |
| **Revenue** |  | $**36958** | $— |
| Cost of sales |  | **(28861)** |  |
| Depletion, depreciation and amortization | 9 | **(4528)** |  |
| **Mine operating income** |  | **3569** |  |
| **Expenses** |  |  |  |
| Exploration, evaluation and pre-development | 16 | **38809** | 10477 |
| General and administrative | 17 | **17090** | 10456 |
| Restructuring costs |  | **—** | 4444 |
| Property maintenance |  | **3249** | 387 |
| Share-based payments | 13 | **3280** | 2683 |
| **Loss before the following** |  | **(58859)** | (28447) |
| Other income / (expense) | 18 | **(11683)** | 126942 |
| Finance expense | 19 | **(20488)** | (645) |
| Related party interest expense |  | **—** | (1177) |
| **Income / (loss) before income taxes** |  | **(91030)** | 96673 |
| Current tax expense |  | **—** | (200) |
| Deferred tax recovery / (expense) | 21 | **11833** | (19853) |
| **Income / (loss) and comprehensive income / (loss) for the year** |  | **(79197)** | 76620 |
| Income from discontinued operations for the year | 4 | **—** | 11603 |
| **Income / (loss) and comprehensive income / (loss) for the year** |  | $**(79197)** | $88223 |
| **Income / (loss) per common share** |  |  |  |
| Basic income / (loss) per share | 14 | $**(0.33)** | $0.60 |
| Diluted income / (loss) per share | 14 | $**(0.33)** | $0.58 |
| **Weighted average number of common shares outstanding** |  |  |  |
| Basic weighted average shares outstanding | 14 | **240100023** | 148288884 |
| Diluted weighted average shares outstanding | 14 | **240100023** | 153041598 |

---

*See accompanying notes to the Consolidated Financial Statements*

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(Stated in thousands of United States Dollars)

---

| | | | |
|:---|:---|:---|:---|
| | | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | Note | **2022** | 2021 |
| **OPERATING ACTIVITIES** |  |  |  |
| **Income / (loss) for the year** |  | $**(79197)** | $76620 |
| **Items not affecting cash** |  |  |  |
| Depletion, depreciation and amortization | 9 | **6184** | 361 |
| Non-cash share-based payments | 13(f) | **2915** | 2683 |
| Non-cash items included in other income | 15(ii) | **8066** | (126321) |
| Related party interest expense |  | **—** | 1177 |
| Loss on foreign exchange |  | **403** | 200 |
| Finance expense |  | **20460** |  |
| Deferred taxes | 21 | **(11833)** | 19853 |
| Change in non-cash working capital balances related to operations | 15(i) | **7160** | 2872 |
| Cash used in operating activities of continuing operations |  | **(45842)** | (22555) |
| Cash provided by operating activities of discontinued operations |  | **—** | 9548 |
| Cash used in operating activities |  | $**(45842)** | $(13007) |
| **INVESTING ACTIVITIES** |  |  |  |
| Capital expenditures on property, plant and equipment | 9 | **(50221)** | (6015) |
| Acquisition of Ruby Hill |  | **—** | (75084) |
| Acquisition of Granite Creek |  | **—** | (23310) |
| Net cash on asset exchange |  | **—** | 5100 |
| Environmental liability security |  | **(2125)** | (30177) |
| Reclamation expenditures | 11 | **(622)** |  |
| Other assets | 6(iv) | **(1767)** |  |
| Purchase of investments |  | **—** | (1954) |
| Cash used in investing activities of continuing operations |  | **(54735)** | (131440) |
| Cash used in investing activities of discontinued operations |  | **—** | (6146) |
| Cash used in investing activities |  | $**(54735)** | $(137586) |
| **FINANCING ACTIVITIES** |  |  |  |
| Proceeds from Gold Prepay Agreement | 10 | **41737** |  |
| Proceeds from Silver Purchase Agreement | 10 | **29889** |  |
| Principal repayment on Gold Prepay Agreement | 10 | **(12901)** |  |
| Net proceeds on Orion convertible loan | 10 | **—** | 48590 |
| Net proceeds on Sprott convertible loan | 10 | **—** | 10000 |
| Proceeds on loan from Equinox | 10 | **—** | 20750 |
| Repayment of loan from Equinox | 10 | **—** | (20750) |
| Proceeds from shares issued in equity financing | 1(a) | **—** | 63724 |
| Proceeds from shares issued in private placements | 13(b) | **—** | 103117 |
| Share issue costs |  | **—** | (2602) |
| Stock option and warrant exercises |  | **3139** | 1882 |
| Finance fees paid |  | **—** | (644) |
| Related party interest paid |  | **—** | (1177) |
| Other |  | **(437)** | 5 |
| Cash provided by financing activities of continuing operations |  | **61427** | 222895 |
| Cash provided by / (used in) financing activities of discontinued operations |  | **—** |  |
| Cash provided by financing activities |  | $**61427** | $222895 |
| Change in cash and cash equivalents during the year |  | **(39150)** | 72302 |
| Cash and cash equivalents, beginning of year |  | **87658** | 15239 |
| Effect of exchange rate changes on cash held |  | **(232)** | 117 |
| Cash and cash equivalents, end of year |  | $**48276** | $87658 |

---

*Supplemental cash flow information [Note 15]*

*See accompanying notes to the Consolidated Financial Statements*

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

(Stated in thousands of United States Dollars, except for share data)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Share Capital** | **Share Capital** | **Share Capital** | **Share Capital** | **Share Capital** | **Share Capital** | **Share Capital** |
| **Issued and outstanding** | **Note** | **Number of<br>shares** | **Share capital** | **Equity settled <br>employee <br>benefits** | **Surplus / (deficit)** | **Total equity** |
| **Balance as at December 31, 2020** |  | 481 | $10218 | $7141 | $(33898) | $(16539) |
| Shares issued to Premier to settle intercompany | 1(c) | 1133 | 140395 |  |  | 140395 |
| Transfer of Premier USA shares to the Company | 1(a) | (1614) | (150613) |  |  | (150613) |
| Shares issued to Premier on transfer of Premier USA Shares | 1(a) | 137624461 | 144274 | 4384 |  | 148658 |
| Loss on modification of shareholder loan | 1(c) |  |  |  | (8832) | (8832) |
| Shares issued in equity financing | 13(b) | 30914614 | 60841 |  |  | 60841 |
| Shares issued to Equinox in private placement | 13(b) | 5479536 | 11760 |  |  | 11760 |
| Shares issued on acquisition of Granite Creek | 13(b) | 13036846 | 27000 |  |  | 27000 |
| Shares issued on land acquisition | 13(b) | 2430488 | 5000 |  |  | 5000 |
| Shares issued in private placement | 13(b) | 8784122 | 18305 |  |  | 18305 |
| Shares issued to NGM for Asset Exchange | 13(b) | 22757393 | 47422 |  |  | 47422 |
| Shares issued to Orion in private placement | 13(b) | 7500000 | 15629 |  |  | 15629 |
| Shares issued to Waterton on acquisition of Ruby Hill | 13(b) | 3191358 | 8000 |  |  | 8000 |
| Shares issued to Orion for offtake transfer | 13(b) | 839799 | 1750 |  |  | 1750 |
| Shares issued to Equinox for anti-dilution rights | 13(b) | 4800000 | 10000 |  |  | 10000 |
| Orion forced conversion option | 10(i) |  |  |  | (2029) | (2029) |
| Sprott forced conversion option | 10(ii) |  |  |  | (367) | (367) |
| Exercise of stock options | 13(d) | 1345200 | 2819 | (938) |  | 1881 |
| Share-based payments |  |  |  | 3096 |  | 3096 |
| Share issue costs |  |  | (2602) |  |  | (2602) |
| Income for the year |  |  |  |  | 88223 | 88223 |
| **Balance as at December 31, 2021** |  | 238703817 | 350198 | 13683 | 43097 | 406978 |
| Exercise of warrants and stock options | 13(d) | 1857200 | 4272 | (573) |  | 3699 |
| Share-based payments | 13(f) |  |  | 1932 |  | 1932 |
| Loss for the year |  |  |  |  | (79197) | (79197) |
| **Balance as at December 31, 2022** |  | **240561017** | $**354470** | $**15042** | $**(36100)** | $**333412** |

---

*See accompanying notes to the Condensed Consolidated Interim Financial Statements*

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**1.NATURE OF BUSINESS**

i-80 Gold Corp ("i-80 Gold" or the "Company"), is a Nevada-focused, growth-oriented gold and silver producer engaged in the exploration, development and production of gold, silver and polymetallic deposits. The Company's principal assets include the Ruby Hill Mine, Lone Tree Mine, Granite Creek Project and McCoy-Cove Project. Each property is wholly-owned by the Company.

The Company was incorporated on November 10, 2020, in the province of British Columbia, Canada. The Company's common shares are listed on the Toronto Stock Exchange ("TSX") under the symbol IAU and the New York Stock Exchange ("NYSE") under the symbol IAUX. Its head office is located at Suite 460, 5190 Neil Road, Reno, Nevada, 89502.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)Plan of Arrangement with Equinox Gold**

On December 16, 2020, Premier Gold Mines Limited ("Premier") and Equinox Gold Corp. ("Equinox Gold") announced that the companies entered into a definitive agreement (the "Agreement") whereby Equinox Gold would acquire all the outstanding shares of Premier (the "Transaction"). Concurrently, Premier would spin out its U.S. assets and operations which are included in the entities listed in Note 2(b) to a newly formed Canadian domiciled company i-80 Gold. On closing of the Transaction, existing Equinox Gold and Premier shareholders would own approximately 84% and 16% of Equinox Gold, and Equinox Gold and existing shareholders of Premier would own 30% and 70% of the Company, respectively, on an issued share basis.

On February 23, 2021, Premier's security holders voted to approve the Transaction. By approving the Transaction, Premier security holders also approved the spin out to its shareholders shares of the Company.

On March 18, 2021, the Company completed its private placement offering of 30,914,614 subscription receipts at a subscription price of C$2.60 for aggregate gross proceeds of approximately C$80.4 million ($60.8 million). Each subscription receipt entitled the subscriber to one common share of the Company and one-quarter share purchase warrant at an exercise price of C$3.64 with an expiration date of October 7, 2022 (total share purchase warrants issued of 7,728,654).

Concurrently with the Company's offering, Equinox Gold advanced to the Company a $20.75 million bridge loan that was used by the Company for the purposes of making a $20.75 million cash deposit with affiliates of Waterton Global Resource Management, Inc. ("Waterton") in partial satisfaction of the purchase price payable to Waterton for the acquisition of the Granite Creek Project. The loan matured and was repaid within 10 days following the closing of the Transaction in accordance with the agreement.

The Transaction closed on April 7, 2021. Premier shareholders received 0.1967 of an Equinox Gold share for each Premier share held representing an at market acquisition based on the 10 day volume weighted average closing prices for both Equinox Gold and Premier shares on the TSX; and 0.4 of a share of the Company for each Premier share held.

On April 7, 2021, just prior to the completion of the spin out of Premier by way of a Plan of Arrangement ("the Arrangement"), the Company issued 137,624,461 common shares to Premier for the transfer of its investment in Premier Gold Mines USA Inc. ("Premier USA") to the Company for the carrying amount of the investment, $150.6 million (1,614 common shares) offset by $4.4 million allocated to the equity settled employee benefits reserve for replacement options, $0.9 million for the transfer of the South Arturo silver stream, and $0.5 million for replacement warrants issued pursuant to the Arrangement resulting in $144.9 million in equity.

In accordance with the terms of the Arrangement, the Company and Equinox Gold exchanged existing Premier stock options at the same ratio as shareholders received on the distribution of the Company to Premier shareholders and as such, the Company issued 0.4 of a stock option for each Premier option held. This resulted in 5,722,000 replacement options to option holders on record as of April 7, 2021, at an average option price of C$1.88. The replacement options were valued at $4.4 million and reduced the investment in Premier USA and were allocated to the equity settled employee benefits reserve.

Also, in accordance with the terms of the Arrangement, a portion of the existing Premier silver stream agreement and replacement warrants were also allocated to the Company. The resulting valuation of $0.9 million for the transfer of the South Arturo silver stream and

$0.5 million for 800,000 replacement warrants reduced the investment in Premier USA and were included as other long-term liabilities of the Company.

Following the completion of the spin out on April 7, 2021, the subscription receipts were released from escrow and converted to common shares of the Company and were listed and posted for trading on the TSX. Trading in the Company's common shares commenced at the opening of the TSX on April 13, 2021, under the symbol "IAU".

------

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**(b)Acquisition and Purchase Agreements**

*Osgood Mining Company LLC Acquisition*

On April 15, 2021, the Company, together with its subsidiary Premier USA completed the purchase agreement with affiliates of Waterton to acquire from Waterton all the outstanding membership interests of Osgood Mining Company LLC ("Osgood"). Osgood is the owner of the Granite Creek Project (formerly the "Getchell Project") in the Getchell gold belt near Winnemucca, Nevada. Consideration paid to Waterton consisted of (i) $23.0 million in cash, (ii) 13,036,846 common shares of the Company, (iii) warrants to purchase 12,071,152 common shares of the Company, with an exercise price C$3.64 per common share, for a period of 36 months following the closing date, and (iv) contingent value rights including a payment to Waterton in the amount of $5.0 million upon the public announcement of a positive production decision related to the Granite Creek Project (underground or open pit), and an additional $5 million upon production of the first ounce of gold (excluding ordinary testing and bulk sampling programs) following a 60 consecutive day period where gold prices have exceeded $2,000 per ounce. The common shares and warrants issued were subject to a statutory hold period under applicable Canadian securities legislation that expired on August 15, 2021.

The Osgood acquisition was accounted for as an asset acquisition as management determined that substantially all the fair value of the gross assets acquired were concentrated on the Granite Creek Project mineral property. The components of consideration that were paid and the allocation to the net assets acquired is detailed in the table below:

---

| | |
|:---|:---|
| **Components of consideration paid:** | |
| Cash | $23000 |
| Common shares | 27000 |
| Warrants | 6065 |
| Transaction costs | 309 |
|  | $**56374** |
| **Allocated value:** |  |
| Other assets | $28 |
| Buildings and equipment | 356 |
| Mineral properties | 58041 |
| Reclamation and closure cost obligations | (2051) |
|  | $**56374** |

---

For contingent consideration and payments, an accounting policy choice exists, and an entity may recognize a liability for the expected variable payments at the time control of the underlying asset is obtained or they may only recognize such a liability as the related activity that gives rise to the variability occurs. For the Osgood acquisition, management did not recognize a liability for contingent payments as the conditions required for these payments had not been met as of the date the assets were acquired.

*Christison Purchase Agreement*

On December 15, 2020, Premier USA entered into a definitive purchase agreement with the Christison Family Trust and Seven Dot Cattle Co. LLC to acquire certain fee lands and unpatented mining claims (the "First Property" and the "Second Property") (collectively the "Christison Acquisition") situated in Humboldt County, Nevada, for consideration consisting of $10 million in cash and $5 million in common shares of the Company. The mining claims are located adjacent to the Granite Creek Project. During the fourth quarter of 2020 Premier USA paid $7.5 million in cash as consideration for the First Property. On May 10, 2021, Premier USA completed the acquisition of the Second Property for consideration of $2.5 million in cash and 2,430,488 common shares of the Company.

On completion of the transactions, the properties acquired in the Christison Acquisition and the Osgood Mining Company LLC acquisition were combined under the Granite Creek Project.

*Acquisition of Ruby Hill*

On October 18, 2021, the Company completed the acquisition of Ruby Hill Mining Company, LLC ("Ruby Hill"). The Ruby Hill property is host to multiple deposits that contain gold and silver resources, potential for significant base metal mineralization, and a previously producing open pit mine.

The Company acquired 100% of the issued and outstanding shares of Ruby Hill for payment of $75 million in cash, 3,191,358 common shares of the Company valued at $8 million, and future milestone payments of up to $67 million that are subject to an early prepayment option that could reduce the milestone payments to $47 million.

------

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

The four milestone payments and corresponding early prepayment options are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $17 million in cash and/or shares of i-80 Gold payable on the earlier of 60 days following the issuance of a press release by the Company regarding the completion of a new or updated Mineral Resource estimate for Ruby Hill or 15 months after closing, based on the market price of i-80 Gold's shares at the time of such payment (the "First Milestone Payment");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $15 million in cash and/or shares of i-80 payable on the earlier of 60 days following the issuance of a press release by the Company regarding the completion of a Feasibility Study for Ruby Hill or 24 months after closing, based on the market price of i-80 Gold's shares at the time of such payment (the "Second Milestone Payment"). An early prepayment option to reduce the payment by $5 million is available if the payment is made less than 15 months after closing and if the payment in shares of the Company does not exceed up to $7.5 million of the total amount, at the Company's discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $15 million in cash and/or shares of i-80 Gold payable on the earlier of 30 months after closing and 90 days following the announcement by the Company of a construction decision related to a deposit on any portion of Ruby Hill that is not currently being mined, based on the market price of i-80 Gold's shares at the time of such payment (the "Third Milestone Payment"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $20 million in cash and/or shares of i-80 Gold payable on the earlier of 36 months after closing and 90 days following the announcement by the Company of achieving Commercial Production related to a deposit on any portion of Ruby Hill that is not currently being mined, priced based on the market price of i-80 Gold's shares at the time of such payment (the "Fourth Milestone Payment"). An early prepayment option to reduce the payment for the third and fourth milestone payments to $20 million is available if the payments are done prior to 24 months after closing, if the payment in shares of the Company did not exceed up to $10 million of the total amount, at the Company's discretion, and if shares held by Waterton do not exceed 9.99% of the outstanding shares of the Company.

The Company determined that the Ruby Hill Acquisition represents a business combination, with i-80 as the acquirer. Transaction costs incurred in respect of the acquisition totaling $1.2 million were expensed and presented within professional fees in general and administrative expense in profit or loss during the period ended December 31, 2021.

---

| | |
|:---|:---|
| **The acquisition date fair value of the consideration transferred consisted of the following:** | |
| Cash | $75084 |
| Share-based consideration | 8000 |
| Current portion of deferred consideration (i) (Note 12) | 15540 |
| Long-term portion of deferred consideration (i) (Note 12) | 26355 |
| **Total consideration** | $**124979** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Management's best estimate is that the early prepayment options will be exercised for all milestone payments (discounted at a rate of 7.5%): the fair value of the first milestone payment of $17 million, the second milestone prepayment of $10 million, and the third and fourth milestone prepayment of $20 million.

---

| | |
|:---|:---|
| **Net assets (liabilities) acquired:** | |
| Accounts receivable and other assets | $195 |
| Inventory | 13800 |
| Property, plant and equipment | 29981 |
| Mineral property interests | 105877 |
| Accounts payable | (1003) |
| Accrued liabilities | (663) |
| Provision for environmental rehabilitation | (23208) |
| **Fair value of net assets acquired** | $**124979** |

---

The fair value of property, plant and equipment, mineral property interests, and the provision for environmental rehabilitation were estimated using discounted cash flow models, comparable transactions, and other market-based information. Expected future cash flows are based on estimates of future gold and silver prices and projected revenues, estimated quantities of mineral reserves and mineral resources, expected future production costs and capital expenditures based on life-of-mine plans at the acquisition date. The fair value of inventory was based on forward gold prices and the cost to complete inventory to finished product in determining the net realizable value.

From the date of acquisition up to December 31, 2021, the Ruby Hill property did not generate any revenue with all direct and indirect operating costs in that intervening period capitalized into inventory. Accordingly, the operating costs did not impact the consolidated statement of income / (loss) for the period ended December 31, 2021. The Company incurred incremental general and administrative costs in relation to Ruby Hill, however, it is impracticable to allocate these costs to Ruby Hill as there were other acquisitions throughout 2021 that had also driven increases to these costs.

On acquisition of the Ruby Hill property, Waterton did not provide historical financial information on the assets performance and therefore it is not possible to disclose the impact on the consolidated statement of income / (loss) for the year ended December 31, 2021, as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period.

------

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

*Asset Exchange with Nevada Gold Mines LLC*

On October 14, 2021, the Company completed the Asset Exchange Agreement ("Asset Exchange") with Nevada Gold Mines LLC ("NGM"), a joint-venture between Barrick Gold Corporation and Newmont Corporation. As part of the Asset Exchange, the Company acquired the Lone Tree and Buffalo Mountain gold deposits and certain processing infrastructure, including an autoclave, from NGM in consideration for: (i) the Company's 40% ownership in the South Arturo Property; (ii) assignment of the Company's option to acquire the adjacent Rodeo Creek exploration property; (iii) contingent consideration of up to $50 million based on an amount equal to $25 per ounce of recovered gold produced from the mineral resources at the Lone Tree property; and (iv) arrangement of substitute bonding in respect of the Lone Tree and Buffalo Mountain reclamation obligations. In addition, at closing of the Asset Exchange, NGM reimbursed the Company approximately $7.3 million for amounts previously advanced by the Company for the autonomous truck haulage test work completed at South Arturo and for funds advanced by the Company that were not used for reclamation activities.

The legal transfer was effective June 1, 2021 and as such, the Company obtained the free cash flow from Lone Tree's operations from June 1, 2021 until October 14, 2021 and in exchange, NGM obtained the free cash flow of South Arturo's operation from June 1, 2021 until October 14, 2021. NGM also entered into a Subscription Agreement where NGM subscribed to $47.7 million of the Company's common shares.

The Company determined that the Asset Exchange represents an asset acquisition. Transaction costs incurred with respect to the Asset Exchange totaled $3.3 million which were included in the components of consideration paid.

---

| | |
|:---|:---|
| The disposal of the Company's 40% interest in South Arturo created no gain or loss of control.<br>**Components of consideration paid:** | |
| Book value of South Arturo asset (Note 4) | $42819 |
| NGM reimbursement | (7331) |
| Transaction costs | 3289 |
| Offtake Transfer Payment | 1750 |
| **Total consideration** | $**40527** |

---

The underlying assets purchased and liabilities assumed were recorded at cost allocated based upon their relative fair values at the date of purchase. The table below presents the values of the assets purchased and liabilities assumed on the date of acquisition:

---

| | |
|:---|:---|
| **Net assets (liabilities) acquired:** | |
| Cash | $1058 |
| Inventory | 3474 |
| Property, plant and equipment | 166480 |
| Mineral property interests | 65521 |
| Provision for environmental rehabilitation | (60475) |
| **Fair value of net assets acquired - Gross of tax** | $**176058** |
| Taxes payable | (1125) |
| Deferred tax liability | (27704) |
| **Fair value of net assets acquired - Net of tax** | $**147229** |

---

The fair value of property, plant and equipment, mineral property interests, and the provision for environmental rehabilitation were estimated using discounted cash flow models, comparable transactions, and other market-based information. Expected future cash flows are based on estimates of future gold and silver prices and projected revenues, estimated quantities of mineral reserves and mineral resources, expected future production costs and capital expenditures based on life-of-mine plans at the acquisition date. The fair value of inventory was based on forward gold prices and the cost to complete inventory to finished product in determining the net realizable value.

---

| | |
|:---|:---|
| **Income statement impact:** | |
| Gain arising on asset exchange - Gross of tax | $135531 |
| Income tax expense | 28829 |
| **Total gain arising on asset exchange - Net of tax** | $**106702** |

---

For contingent consideration and payments, an accounting policy choice exists and an entity may recognize a liability for the expected variable payments at the time control of the underlying asset is obtained or they may only recognize such a liability as the related activity that gives rise to the variability occurs. For the Asset Exchange, management has not recognized a liability for contingent payments as the conditions required for these payments have not been met as of the date the assets were acquired.

*Argenta Property Acquisition*

On November 10, 2022, the Company through its wholly owned subsidiary Argenta LLC ("Argenta") acquired a strategic property package located in Lander Country, Nevada (the "Argenta Property"), that includes water rights, a rail heading, barite deposits, and barite processing infrastructure from Baker Hughes Oilfield Operations LLC for consideration of $3.7 million. The strategic acquisition provides the Company with water rights for development and operation of the McCoy-Cove Project.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

The Company determined that the Argenta Property acquisition represents an asset acquisition. The underlying assets purchased and liabilities assumed were recorded at cost allocated based upon their relative fair values at the date of purchase. The table below presents the values of the assets purchased and liabilities assumed on the date of acquisition:

---

| | |
|:---|:---|
| **Net assets (liabilities) acquired:** | |
| Property, plant and equipment | $3122 |
| Other assets | 1767 |
| Provision for environmental rehabilitation | (1169) |
| **Fair value of net assets acquired** | $**3720** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**(c)Related Party Balances**

In connection with the closing of the Transaction, all intercompany balances including the receivable from Premier, the payable due to Premier, and the intercompany note with Premier were settled with a combination of cash, a distribution of the Company's shares and a conversion to Premier equity prior to the spin-out of the Company to i-80 Gold. The gold sale receivable from Premier was settled in cash other than $4 million which was distributed back to Premier in the form of a dividend subject to a 5% withholding tax. The payable due to Premier and the intercompany note with Premier were converted to 1,133 shares of the Company at a value of $140.4 million.

In April 2021, the Company modified a portion of its intercompany note payable to Premier to change the repayment currency from CAD to USD. This modification resulted in the extinguishment of the original intercompany note and recognition of a new intercompany note, with the difference of $8.8 million recorded directly into surplus / (deficit) during the period ended December 31, 2021, as this transaction is with Premier in their capacity as a shareholder and is therefore outside the scope of IFRIC 19 *- Extinguishing Financial Liabilities with Equity Instruments*.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)Financing Agreements**

Also, in connection with the closing of the Transaction on April 7, 2021, the Company entered into an offtake agreement with OMF Fund II

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(O) Ltd. ("Orion") and a silver stream agreement with OMF Fund II SO Ltd. ("Nomad").

*Offtake Agreement*

Under the terms of the Offtake Agreement, the Company agreed to sell, and Orion agreed to purchase (i) an aggregate of 29,750 ounces of refined gold for 2021, and (ii) up to an aggregate of 31,500 ounces of refined gold annually (the "Annual Gold Quantity") from the Company's Eligible Projects until March 1, 2027. The Company's Eligible Projects include the South Arturo Project, the Granite Creek Project, and the McCoy-Cove Project. The final purchase price to be paid by Orion will be, at Orion's option, a market referenced gold price in US dollars per ounce during a defined pricing period before and after the date of each sale. In the event that the Company does not produce the Annual Gold Quantity in any given year, the obligation is limited to those ounces actually produced. The Offtake Agreement was amended and restated December 13, 2021, as further described below.

*South Arturo Purchase and Sale Agreement (Silver)*

The Company entered into a Purchase and Sale Agreement (Silver) (the "Stream Agreement") with Nomad, which was connected to South Arturo, whereby the Company will deliver to Nomad (i) 100% of the refined silver from minerals from the main stream area, and (ii) 50% of the refined silver from the exploration stream area. Nomad will pay an ongoing cash purchase price equal to 20% of the silver market price on the day immediately preceding the date of delivery and will credit the remaining 80% against the liability. Following the delivery of an aggregate amount of refined silver equal to $1.0 million to Nomad under the Stream Agreement, Nomad would continue to purchase the refined silver at an ongoing cash purchase price equal to 20% of the prevailing silver price. The liability for the Stream Agreement was included in the net asset value in connection with the asset exchange with NGM, and therefore, is no longer on the statement of financial position as of December 31, 2021.

*Orion and Sprott Financing Package*

The Company entered into a financing package with OMF Fund III (F) Ltd. an affiliate of Orion Mine Finance (collectively "Orion") on December 31, 2021, and a fund managed by Sprott Asset Management USA, Inc. and a fund managed by CNL Strategic Asset Management, LLC ("Sprott") on December 9, 2021 (together the "Finance Package").

The Finance Package in its aggregate consists of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $50 million convertible loan (the "Orion Convertible Loan")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $10 million convertible loan (the "Sprott Convertible Loan" and together with the Orion Convertible Loan, the "Convertible Loans")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $45 million gold prepay purchase and sale agreement entered into with affiliates of Orion (the "Gold Prepay Agreement"), including an accordion feature potentially to access up to an additional $50 million at i-80 Gold's option

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $30 million silver purchase and sale agreement entered into with affiliates of Orion (the "Silver Purchase Agreement"), including an accordion feature to potentially access an additional $50 million at i-80 Gold's option and an amended and restated offtake agreement entered into with affiliates of Orion (the "A&R Offtake Agreement")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 5,500,000 warrants of the Company issued to Orion (the "Orion Warrants" and together with the Orion Convertible Loan, Gold Prepay Agreement, Silver Purchase Agreement and the A&R Offtake Agreement, the "Orion Finance Package").

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

The $60 million in Convertible Loans were fully funded and issued in 2021. The obligations under the Gold Prepay Agreement and Silver Purchase Agreement will be senior secured obligations of the Company and its wholly-owned subsidiaries Ruby Hill Mining Company, LLC and Osgood Mining Company, LLC and secured against the Ruby Hill project in Eureka County, Nevada and the Granite Creek project in Humboldt County, Nevada.

The Sprott and Orion Convertible Loans bear interest at 8.0% per annum and mature on December 9, 2025 and December 13, 2025, respectively. If a change of control occurs prior to the maturity date, the Company shall make an offer to prepay the Convertible Loans in cash, in an amount equal to 101% of the then outstanding principal amount. Outstanding amounts under the Convertible Loans are convertible into common shares of the Company at any time prior to maturity at the option of the applicable respective lender (a) in the case of the outstanding principal, C$3.275 per common share, and (b) in the case of accrued and unpaid interest, subject to TSX approval, at the market price of the common shares on the TSX at time of the conversion of such interest. Commencing 120 days following the closing date of the Convertible Loans, on any date when the volume weighted average price equals or exceeds 150% of the conversion price for each of the preceding 20 days, the Company may at its option elect to require the lenders to convert at the conversion price all of the then outstanding principal amount and any accrued and unpaid interest into common shares of the Company.

Under the Gold Prepay Agreement, i-80 Gold was due to deliver to Orion 3,000 troy ounces of gold for each of the quarters ending March 31, 2022 and June 30, 2022, and thereafter, 2,000 troy ounces of gold per calendar quarter until September 30, 2025 in satisfaction of the $45 million prepayment, for aggregate deliveries of 32,000 troy ounces of gold. i-80 Gold may request an increase in the $45 million prepayment by an additional amount not exceeding $50 million in aggregate in accordance with the terms of the Gold Prepay Agreement.

Prior to funding, the Gold Prepay Agreement was amended to adjust the quantity of the quarterly deliveries of gold, but not the aggregate amount of gold, to be delivered by the Company to Orion over the term of the Gold Prepay Agreement. Under the amended Gold Prepay Agreement, commencing on the date of funding, the Company is required to deliver to Orion 1,600 troy ounces of gold for the quarter ending March 31, 2022, 3,100 troy ounces of gold for the quarter ending June 30, 2022, and thereafter 2,100 troy ounces of gold per calendar quarter until September 30, 2025, in satisfaction of the $45 million prepayment, for aggregate deliveries of 32,000 troy ounces of gold, subject to adjustment as contemplated by the terms of the Gold Prepay Agreement. As the funding from Orion did not occur until April 2022, payment for the delivery of 1,600 ounces for the quarter ending March 31, 2022 was offset against the $45 million of proceeds received from Orion.

Under the Silver Purchase Agreement, commencing April 30, 2022, i-80 Gold will deliver to Orion 100% of the silver production from the Granite Creek and Ruby Hill projects until the delivery of 1.2 million ounces of silver, after which the delivery will be reduced to 50% until the delivery of an aggregate of 2.5 million ounces of silver, after which the delivery will be reduced to 10% of the silver production solely from the Ruby Hill Project. Orion will pay i-80 Gold an ongoing cash purchase price equal to 20% of the prevailing silver price. Until the delivery of an aggregate of 1.2 million ounces of silver, i-80 Gold is required to deliver the following minimum amounts of silver (the "Annual Minimum Delivery Amount") in each calendar year: (i) in 2022, 300,000 ounces, (ii) in 2023, 400,000 ounces, (iii) in 2024, 400,000 ounces, and (iv) in 2025, 100,000 ounces. Upon a construction decision for the Ruby Hill project, comprised of one or both of the Ruby Deep or Blackjack Deposits, which construction decision is based on a feasibility study in form and substance satisfactory to Orion, acting reasonably, i-80 Gold will have the right to request an additional deposit from Orion in the amount of $50 million in aggregate in accordance with the terms of the Silver Purchase Agreement.

Both the Gold Prepay Agreement and the Silver Purchase Agreement were funded on April 12, 2022 with i-80 Gold receiving net proceeds of $71.6 million after netting the aforementioned March 31, 2022 gold delivery and closing costs as further described in Note 10 and Note 24 of these Financial Statements.

The main amendments reflected in the A&R Offtake Agreement include the increase in the term of the agreement to December 31, 2028, the inclusion of the Granite Creek and Ruby Hill projects, and the increase of the annual gold quantity to up to an aggregate of 37,500 ounces in respect of the 2022 and 2023 calendar years and up to an aggregate of 40,000 ounces in any calendar year after 2023. During the year ended December 31, 2022, Orion assigned all of its rights, title and interest under the A&R Offtake Agreement to TRR Offtakes LLC ("Trident").

Additionally, in connection with the Gold Prepay Agreement, the Company issued to Orion the Warrants to purchase up to 5,500,000 common shares of the Company. The Warrants may be exercised at any time at an exercise price of C$3.275 per common share until December 13, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)COVID-19**

The Company continually monitors guidance from the United States Department of Health and Human Services' Centers for Disease Control and Prevention ("CDC"), and mandates issued by the State of Nevada to mitigate the effects of COVID-19 at all of its mine sites and corporate office locations.

Other than the macro-economic impact of inflationary pressure and supply chain challenges, operating activities at Lone Tree, Granite Creek, Ruby Hill and McCoy-Cove are continuing with no significant interruptions to date from COVID-19. The extent to which COVID-19 will impact the Company's operations in the future remains highly uncertain and cannot be accurately estimated at the present time.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**2.SIGNIFICANT ACCOUNTING POLICIES**

&nbsp;&nbsp;&nbsp;&nbsp;**(a)Basis of Preparation and Statement of Compliance**

These Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). Certain comparative amounts have been reclassified to conform with the current year's financial statement presentation. Such reclassifications were not considered material.

The accounting policies applied in these Consolidated Financial Statements are based on IFRS issued and outstanding as of March 14, 2023, the date the Board of Directors approved the statements.

These Consolidated Financial Statements have been prepared on the historical cost basis, except as detailed in the Company's accounting policies as described below. The methods used to measure fair values of derivative instruments are discussed in Note 24(d). The methods used to measure the fair value of the Company's acquired assets and assumed liabilities are discussed in Note 2(t).

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively.

*Basis of measurement and impact of the Arrangement*

These Consolidated Financial Statements have been prepared on a historical cost basis. Transactions occurring prior to the Arrangement on April 7, 2021 were derived from the accounting records of Premier Gold Mines USA Inc. ("Premier USA"). The financial information prior to April 7, 2021 is intended to be representative of the entities had i-80 Gold been operating them as a stand-alone entity, subject to i-80 Gold's control, during this time. The financial information related to this period has been prepared by i-80 Gold's management in accordance with IFRS and requires the use of significant judgments made in allocating reported amounts related to Premier USA. In the opinion of management, these Consolidated Financial Statements reflect all adjustments necessary to present fairly the consolidated statements of financial position and the consolidated statements of net income (loss) and comprehensive income (loss) in accordance with IFRS.

*Presentation of the consolidated statements of financial position*

The transfer of Premier USA's assets and liabilities from Premier to i-80 Gold was recorded by the Company at the carrying amounts recorded in Premier USA's unaudited interim condensed consolidated statement of financial position at the time of the transfer.

The assets, liabilities and equity on the consolidated statements of financial position in the comparative period are directly attributable to Premier USA, and from April 7, 2021, to i-80 Gold.

*Presentation of the consolidated statements of income (loss) and comprehensive income (loss)*

All revenue and operating expenses on the consolidated statements of income (loss) and comprehensive income (loss) are directly attributable to Premier USA and from April 7, 2021, to i-80 Gold. General and administrative expenses recorded prior to the Arrangement have been determined based on actual expenses. Share-based compensation recorded by Premier USA prior to April 7, 2021 has been allocated to Premier USA based on the compensation of Premier USA employees. From April 7, 2021 to December 31, 2021 amounts recorded for expenses are based on amounts incurred by i-80 Gold and Premier USA.

*Presentation of the consolidated statements of changes in equity*

For reporting periods prior to the Arrangement, Premier USA's equity reflects the net assets of the stand-alone entity. At the close of the Arrangement, the carrying amount of the net investment of $10.2 million was transferred to the share capital of i-80 Gold along with the additional equity generated through the settlement of the intercompany balances in the amount of $140.4 million discussed further in Note 1(c).

&nbsp;&nbsp;&nbsp;&nbsp;**(b)Basis of consolidation**

The Financial Statements incorporate the financial statements of the Company and entities controlled by the Company. Control is achieved when the Company is exposed to variable returns and has the ability to affect those returns through power to direct the relevant activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. Subsidiaries will be de-consolidated from the date that control ceases.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Subsidiary** | **Location** | **Percentage of ownership** | **Property** | **Principle activity** |
| Premier Gold Mines USA Inc. | Nevada | 100% | Holding | Mineral exploration |
| Goldcorp Dee LLC | Humboldt, Nevada | 100% | Lone Tree | Production |
| Ruby Hill Mining Company LLC | Eureka, Nevada | 100% | Ruby Hill | Production |
| Osgood Mining Company LLC | Humboldt, Nevada | 100% | Granite Creek | Pre-development |
| Au-Reka Gold Corporation | Eureka, Nevada | 100% | McCoy-Cove | Pre-development |
| Argenta LLC | Lander, Nevada | 100% | Inactive | Mineral exploration |
| Premier Gold Mines Nevada Inc. | Nevada | 100% | Inactive | Mineral exploration |
| Premier Goldbanks LLC | Nevada | 100% | Inactive | Mineral exploration |
| Premier Rye LLC | Nevada | 100% | Inactive | Mineral exploration |

---

All transactions and balances between the Company and its subsidiaries are eliminated on consolidation, including unrealized gains and losses on transactions between the companies. Where unrealized losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Company. Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the period are recognized from the effective date of acquisition, or up to the effective date of disposal, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)Business combinations**

For business combinations that are determined to be a combination of businesses not under common control, the consideration transferred by the Company to obtain control of a subsidiary is calculated as the sum of the acquisition date fair values of the assets transferred, the liabilities assumed and the equity interests issued by the Company, which includes the fair value of any asset or liability arising from a contingent consideration arrangement. Acquisition costs are expensed as incurred.

The Company recognizes identifiable assets acquired and liabilities assumed in a business combination regardless of whether they have been previously recognized in the acquiree's financial statements prior to the acquisition. Assets acquired and liabilities assumed are generally measured at their acquisition date fair values. Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of a) fair value of consideration transferred, b) the recognized amount of any non-controlling interest in the acquiree and c) acquisition date fair value of any existing equity interest in the acquiree, over the acquisition date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount is recognized immediately as income in the statement of income (loss) and comprehensive income (loss).

For business combinations that are determined to be a common control transaction, it is necessary for management to use judgement in applying appropriate accounting treatment that will provide relevant and reliable information. For the Arrangement, management determined that the transaction was a common control transaction as Premier shareholders retained control of i-80 Gold and Premier USA, before and after the Arrangement. As a result, management determined that the most relevant and reliable information would be presented in the consolidated financial statements of i-80 Gold applying the predecessor value or book-value method, which records and consolidates the existing book values of the acquired assets and liabilities of the combined entities, rather than fair values, and no goodwill is recorded. In addition, the investment in the transferred subsidiary (Premier USA) transfers to the new parent (i-80 Gold) at the carrying value of Premier. For comparative presentation purposes, because Premier USA will continue to operate under i-80 Gold, comparative amounts will be retained and continue to be presented in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)Functional and presentation currency**

The functional currency of the Company is the United States dollar ("USD" or "US dollars") which reflects the underlying transactions, events and conditions that are relevant to the entity. Management considers primary and secondary indicators in determining functional currency including the currency that influences sales prices, labor, purchases and other costs. Other indicators include the currency in which funds from financing activities are generated and the currency in which receipts from operations are usually retained.

Reference to $ or USD is to US dollars, reference to C$ or CAD is to Canadian dollars.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)Financial instruments**

Financial instruments are measured on initial recognition at fair value, plus, in the case of financial instruments other than those classified as fair value through profit or loss ("FVPL"), directly attributable transaction costs. Financial instruments are recognized when the Company becomes a party to the contracts that give rise to them and are classified at amortized cost, fair value through profit or loss or fair value through other comprehensive income, as appropriate. The Company considers whether a contract contains an embedded derivative when the entity first becomes a party to it. The embedded derivatives are separated from the host contract if the host contract is not measured at fair value through profit or loss and when the economic characteristics and risks are not closely related to those of the host contract. Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

<u>Financial assets at FVPL</u>

Financial assets at FVPL include financial assets held for trading and financial assets not designated upon initial recognition as amortized cost or fair value through other comprehensive income ("FVOCI"). A financial asset is classified in this category principally for the purpose of selling in the short term, or if so designated by management. Transaction costs are expensed as incurred. On initial recognition, a financial asset that otherwise meets the requirements to be measured at amortized cost or FVOCI may be irrevocably designated as FVPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial assets measured at FVPL are measured at fair value with changes in fair value recognized in profit or loss.

<u>Financial assets at amortized cost</u>

A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, and is not designated as FVPL. Financial assets classified as amortized cost are measured subsequent to initial recognition at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial asset or financial liability and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts/payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or (when appropriate) a shorter period, to the net carrying amount on initial recognition.

<u>Financial liabilities</u>

Financial liabilities are classified as measured at amortized cost or FVPL. A financial liability is classified as at FVPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Gains and losses are recognized in net earnings when the liabilities are derecognized as well as through the amortization process. Borrowing liabilities are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date.

<u>Derivative instruments</u>

Derivative instruments, including embedded derivatives, are measured at fair value on initial recognition and at each subsequent reporting period. Any gains or losses arising from changes in fair value on derivatives are recorded in profit or loss.

<u>Fair values</u>

The fair value of quoted investments is determined by reference to market prices at the close of business on the statement of financial position date. Where there is no active market, fair value is determined using valuation techniques. These include using recent arm's length market transactions; reference to the current market value of another instrument which is substantially the same; discounted cash flow analysis; and, pricing models.

Financial instruments that are measured at fair value subsequent to initial recognition are grouped into a hierarchy based on the degree to which the fair value is observable as follows:

Level 1 fair value measurements are quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

<u>Impairment of financial assets</u>

A loss allowance for expected credit losses is recognized in OCI for financial assets measured at amortized cost. At each balance sheet date, on a forward-looking basis, the Company assesses the expected credit losses associated with its financial assets carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. The impairment model does not apply to investments in equity instruments.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

The expected credit losses are required to be measured through a loss allowance at an amount equal to the 12-month expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date) or full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument). A loss allowance for full lifetime expected credit losses is required for a financial instrument if the credit risk of that financial instrument has increased significantly since initial recognition.

<u>Derecognition of financial assets and liabilities</u>

A financial asset is derecognized when either the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party. If neither the rights to receive cash flows from the asset have expired nor the Company has transferred its rights to receive cash flows from the asset, the Company will assess whether it has relinquished control of the asset or not. If the Company does not control the asset then derecognition is appropriate.

A financial liability is derecognized when the associated obligation is discharged or canceled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in net earnings.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)Cash and cash equivalents**

Cash and cash equivalents is comprised of cash on hand and demand deposits.

&nbsp;&nbsp;&nbsp;&nbsp;**(g)Inventory**

Material extracted from our mines is classified as either ore or waste. Ore represents material that, at the time of extraction, is expected to be processed into a saleable form and sold at a profit. Raw materials are comprised of both ore in stockpiles and ore on leach pads as processing is required to extract benefit from the ore. Ore is accumulated in stockpiles that are subsequently processed into gold and silver in a saleable form. The recovery of gold from certain oxide ores is achieved through the heap leaching process. Work-in-process represents gold and silver in the processing circuit, including ore and leach pads, that has not completed the production process, and is not yet in a saleable form. Finished goods inventory represents gold and silver in saleable form. Mine operating supplies represent commodity consumables and other raw materials used in the production process, as well as spare parts and other maintenance supplies that are not classified as capital items.

Inventories are valued at the lower of cost and net realizable value ("NRV"). Cost is determined on a weighted average basis and includes all costs incurred, based on a normal production capacity, in bringing each product to its present location and condition. Cost of inventories comprises direct labour, materials and contractor expenses, including non-capitalized stripping costs; depreciation on property, plant and equipment including capitalized stripping costs; and an allocation of general and administrative costs. As ore is removed for processing, costs are removed based on the average cost per ounce in the stockpile.

Provisions to reduce inventory to NRV are recorded to reflect changes in economic factors that impact inventory value and to reflect present intentions for the use of slow moving and obsolete supplies inventory. NRV is determined with reference to relevant market prices less applicable variable selling expenses. Provisions recorded also reflect an estimate of the remaining costs of completion to bring the inventory into its saleable form. Provisions are also recorded to reduce mine operating supplies to NRV, which is generally calculated by reference to its salvage or scrap value, when it is determined that the supplies are obsolete. Provisions are reversed to reflect subsequent recoveries in NRV where the inventory is still on hand.

&nbsp;&nbsp;&nbsp;&nbsp;**(h)Property, plant and equipment**

<u>General</u>

Property, plant and equipment are recorded at cost less accumulated depreciation, depletion and impairment charges.

Major overhaul expenditures and the cost of replacement of a component of plant and mobile equipment are capitalized and depreciated over the average expected life between major overhauls. All other replacement spares and other costs relating to maintenance of mobile equipment are charged to the cost of production.

Directly attributable costs incurred for major capital projects and site preparation are capitalized until the asset is in a location and condition necessary for operation as intended by management. These costs include dismantling and site restoration costs to the extent these are recognized as a provision. Management annually reviews the estimated useful lives, residual values and depreciation methods of the Company's property, plant and equipment and also when events or changes in circumstances indicate that such a review should be made. Changes to estimated useful lives, residual values or depreciation methods resulting from such review are accounted for prospectively.

An item of property, plant and equipment is de-recognized upon disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between any proceeds received and the carrying amount of the asset) is included in the statements of income / (loss) and comprehensive income / (loss) in the period the asset is de-recognized.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

<u>Exploration, evaluation and pre-development expenditures</u>

The exploration, evaluation and pre-development expenditure policy is to charge exploration and evaluation expenditures within an area of interest as expense until management concludes that the technical feasibility and commercial viability of extracting a mineral resource are demonstrable and that future economic benefits are probable. In making this determination, the extent of exploration, as well as the degree of confidence in the mineral resource is considered. Once a project has been established as commercially viable and technically feasible and has been subject to an impairment analysis, further expenditures are capitalized and classified as development properties.

Exploration, evaluation and pre-development expenditures consist of:

–gathering exploration data through topographical and geotechnical studies;

–exploratory drilling, trenching and sampling;

–determining the volume and grade of the resource;

–test work on geology, metallurgy, mining, geotechnical and environmental; and

–conducting engineering, marketing and financial studies.

Exploration and evaluation assets acquired are initially recognized at fair value as exploration rights within tangible assets.

<u>Development properties (underground and open pit)</u>

A property, either open pit or underground, is classified as a development property when a mine plan has been prepared and technical feasibility has been established, a permit has been obtained and a decision is made to commercially develop the property and mineralization is classified as proven and probable. Development expenditure is accumulated separately for each area of interest for which economically recoverable mineral reserves have been identified.

All expenditures incurred prior to the commencement of commercial levels of production from each development property are capitalized. In addition, capitalized costs are assessed for impairment when there is an indicator of impairment. Proceeds received from selling output produced before the asset is ready for its intended use are recognized in profit or loss. The related cost of producing the output is measured using the guidance in IAS 2, 'Inventories', and it is recognized as an expense in profit or loss when sold.

Development properties are not amortized until they are reclassified as mine property assets following the achievement of commercial levels of production.

<u>Mine properties</u>

After a mine property has been brought into commercial production, costs of any additional mining, in-pit drilling and related work on that property are expensed as incurred. Mine development costs incurred to expand operating capacity, develop new ore bodies or develop mine areas in advance of current production, including the stripping of waste material, are deferred and then amortized on a unit-of- production basis.

<u>Deferred stripping costs</u>

Stripping costs incurred in the production phase of a mining operation are accounted for as variable production costs and are included in the costs of inventory produced. Stripping activity that improves access to ore in a future period is accounted for as an addition to or enhancement of an existing asset. The Company recognizes stripping activity assets when it is probable that the future economic benefit associated with the stripping activity will flow to the Company; the component of the ore body for which access has been improved can be identified; and the costs relating to the stripping activity associated with that component can be measured reliably.

Stripping activity assets are amortized on a unit of production basis in subsequent periods over the proven and probable reserves to which they relate.

<u>Depreciation and depletion</u>

The carrying amounts of mine properties, plant and equipment are depreciated or depleted to their estimated residual value over the estimated economic life of the specific assets to which they relate, using the depreciation methods or depletion rates as indicated below. Estimates of residual values or useful lives and depreciation methods are reassessed annually and any change in estimate is taken into account in the determination of the remaining depreciation or depletion rate. Depreciation or depletion commences on the date the asset is available for its use as intended by management.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

Depreciation or depletion is computed using the following rates:

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| | | |
|:---|:---|:---|
| **Item** | **Methods** | **Rates** |
| Mine properties | Units of production | Estimated proven and probable mineral reserves |
| Equipment, leasehold improvements | Straight line | Lesser of lease term and estimated useful life |
| Buildings | Straight line | 20 years |
| Furniture, office equipment and software | Straight line | 2 – 5 years |
| Plant and equipment | Straight line, units of production | 4 – 10 years, estimated proven and probable mineral reserves |
| Mining equipment | Straight line | 1 – 10 years based on life of mine |
| Deferred stripping costs | Units of production | Estimated proven and probable mineral reserves accessible due to stripping activity |

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&nbsp;&nbsp;&nbsp;&nbsp;**(i)Provisions**

Provisions are recognized when the Company or its subsidiaries have a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. Contingent liabilities are not recognized in the financial statements, if not estimatable and probable, and are disclosed in notes to the financial information unless their occurrence is remote. Contingent assets are not recognized in the financial statements, but are disclosed in the notes if their recovery is deemed probable.

<u>Environmental rehabilitation</u>

Provisions for environmental rehabilitation are made in respect of the estimated future costs of closure and restoration and for environmental rehabilitation costs (which include the dismantling and demolition of infrastructure, removal of residual materials and remediation of disturbed areas) in the accounting period when the related environmental disturbance occurs. The provision is discounted using a pretax rate, and the unwinding of the discount is included in finance costs. At the time of establishing the provision, a corresponding asset is capitalized and is depreciated over future production from the mining property to which it relates. The provision is reviewed each reporting period for changes in cost estimates, discount rates and operating lives. Changes to estimated future costs are recognized in the statement of financial position by adjusting the rehabilitation asset and liability. If, for mature mines, the revised mine assets net of rehabilitation provisions exceeds the carrying value, that portion of the increase is charged directly to expenses. For closed sites, changes to estimated costs are recognized immediately in profit and loss.

&nbsp;&nbsp;&nbsp;&nbsp;**(j)Leases**

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether the:

–contract involves the use of an identified asset:

–this may be specified explicitly or implicitly,

–should be physically distinct or represent substantially all of the capacity of a physically distinct asset, and

–if the supplier has a substantive substitution right, then the asset is not identified.

–Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use, and

–Company has the right to direct the use of the asset. The Company has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either the:

–Company has the right to operate the asset, or

–Company designed the asset in a way that predetermines how and for what purpose it will be used.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset will be periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability when applicable.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

–fixed payments, including in-substance fixed payments,

–variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date,

–amounts expected to be payable under a residual value guarantee, and

–the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company presents right-of-use assets that do not meet the definition of investment property in "Property, plant and equipment" and lease liabilities in "Other liabilities".

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases of items that have a lease term of 12 months or less and leases of low-value assets including non-specialized IT equipment. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;**(k)Share capital and warrants**

Share capital represents the fair value of consideration received. Equity instruments are contracts that give a residual interest in the net assets of the Company. Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. Incremental costs directly attributable to the issue of new shares or options are also shown in equity as a deduction.

The Company periodically issues units to investors consisting of common shares and warrants in non-brokered private placements or as additional consideration in a brokered financing or purchase transaction. Each whole warrant issued entitles the holder to acquire a common share of the Company, at a fixed Canadian dollar price over a specified term. These warrants are not transferable from the original investor to a new investor and are considered derivatives because their exercise price is in CAD whereas the Company's functional currency is in USD. Accordingly, the Company recognizes the warrants as a liability at fair value with changes in fair value recognized in profit or loss except the Premier warrants that were replaced on the spin-out recorded as a reduction of equity. When investor or other warrants are exercised, the liability is revalued prior to derecognition with the change in fair value recognized in profit or loss, proceeds received are added to share capital and the liability is derecognized.

Holders of the Company's common shares will be entitled to receive dividends out of any funds legally available when, as and if declared by the Board. Each holder of the Company's common shares is entitled to one vote per share on all matters on which shareholders are generally entitled to vote. The Company's articles do not provide for cumulative voting in the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;**(l)Share-based compensation**

All goods and services received in exchange for the grant of any share-based payment are measured at their fair values or where fair value of the goods and services received is indeterminable estimated using an option pricing model. Where employees are rewarded using share-based payments, the fair values of employees' services are determined indirectly by reference to the fair value of the equity instruments granted. This fair value is determined at the grant date. In the comparative period prior to closing of the Transaction, all share-based payments were granted by Premier and allocated to the Company.

All share-based remuneration is ultimately recognized as an expense in profit or loss with a corresponding credit to reserves.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

<u>Share Option Plan</u>

Stock options are equity-settled share-based compensation awards. The fair value of stock options at the grant date is estimated using the Black-Scholes option pricing model. Compensation expense is recognized over the vesting period based on the number of units estimated to vest. Vesting periods may range from immediate to five years. This expense is recognized as share-based compensation expense with a corresponding increase in equity reserves.

<u>Restricted Share Unit Plan</u>

Restricted share units ("RSU") are granted to eligible members of the Board of Directors, eligible employees and eligible contractors. The RSUs are settled in cash or equity at the option of the Company. The RSUs vest subject to an RSU award letter but no later than December 31, of the third calendar year following the service year determined based on date of grant. The RSUs granted are accounted for under the equity method where the RSU grant letter specifies settlement in shares.

<u>Deferred Share Unit Plan</u>

Deferred share units ("DSU") are granted to eligible members of the Board of Directors, eligible employees and eligible contractors. The DSUs are settled in cash or equity at the option of the Company. The DSUs vest subject to a DSU award letter but no later than December 31, of the third calendar year following the service year determined based on date of grant. The DSUs granted are accounted for under the liability method where the DSU grant letter specifies settlement in cash, and the equity method where the DSU grant letter specifies settlement in shares. DSUs must be retained until the Director leaves the Board, at which time the awards will be equity or cash settled.

&nbsp;&nbsp;&nbsp;&nbsp;**(m)Assets held for sale and discontinued operations**

Non-current assets classified as held for sale are presented separately and measured at the lower of their carrying amounts immediately prior to their classification as held for sale and their fair value less costs to sell. Once classified as held for sale, the assets are not subject to depreciation or amortization.

Any profit or loss arising from the sale of a discontinued operation or its remeasurement to fair value less costs to sell is presented as part of a single line item, profit or loss from discontinued operations.

In the absence of direct guidance from IFRS 5 or IFRS 3 regarding the treatment of transaction costs in the case of a disposal, the Company will defer these costs and recognize them against the gain or loss incurred upon closing of the transaction. The transaction costs will be classified in the asset held for sale line item until the transaction is closed and the related assets and liabilities are derecognized.

&nbsp;&nbsp;&nbsp;&nbsp;**(n)Impairment of non-financial assets**

At each financial position reporting date the carrying amounts of the Company's non-financial assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs of disposal and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm's length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in the profit or loss for the period.

For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;**(o)Revenue**

The Company follows a 5-step process in determining whether to recognize revenue from the sale of precious metals, gold and silver:

–Identifying the contract with a customer;

–Identifying the performance obligations;

–Determine the transaction price;

–Allocating the transaction price to the performance obligations; and

–Recognizing revenue when/as performance obligation(s) are satisfied.

------

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

The Company earns revenue from contracts with customers under the gold offtake arrangement and from gold sold in the London spot market. Revenue from contracts with customers is generally recognized on the settlement date, which is the date the customer obtains control of the promised asset and the Company satisfies its performance obligation. The Company considers the terms of the contract in determining the transaction price. The transaction price is based upon the amount the Company expects to be entitled to in exchange for the transferring of the promised goods. The transaction price is either fixed on the settlement date or at spot prices based upon the terms of the contract. The Company typically receives payment within one to three days of the settlement date.

In the comparative period and prior to the closing of the Transaction, the Company earned revenue from the sale of precious metals to Premier, a related party. All sales were at market prices and a trading margin of 1.8% is applicable in situations where Premier was required to perform significant sales and trading activities for the refined metals. Revenue from related party sales was recognized at the fair value of the consideration received.

&nbsp;&nbsp;&nbsp;&nbsp;**(p)Income taxes**

Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity.

Current income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current or prior reporting periods, that are unpaid at the reporting date. Current tax is payable on taxable profit or other current tax activities, which differs from profit or loss in the financial statements. Calculation of current tax expense is based on tax rates and tax laws that have been enacted by the end of the reporting period.

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred tax on temporary differences associated with investments in subsidiaries and co-ownership is not provided if reversal of these temporary differences can be controlled by the Company and it is expected that reversal will not occur in the foreseeable future.

Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are always provided for in full.

Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. To the extent that the Company does not consider it probable that a future tax asset will be recovered, it is not recognized in the financial statements.

Deferred tax assets and liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same taxation authority.

Changes in deferred tax assets or liabilities are recognized as a component of taxable income or expense in profit or loss, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;**(q)Income / (loss) per share**

The Company presents basic income / (loss) per share data for its common shares, calculated by dividing the income / (loss) attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted income per share is determined using the treasury stock method and the weighted average number of common shares outstanding for the effects of all dilutive stock options.

&nbsp;&nbsp;&nbsp;&nbsp;**(r)Segment reporting**

An operating segment is a component of an entity (i) that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), (ii) whose operating results are regularly reviewed by the entity's management, and (iii) for which discrete financial information is available.

&nbsp;&nbsp;&nbsp;&nbsp;**(s)Interest**

Interest income and expenses are reported on an accrual basis using the effective interest method.

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**(t)Significant accounting judgements and estimates**

The preparation of these Consolidated Financial Statements in accordance with IFRS requires management to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities, disclosure of commitments and contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of judgement based on various assumptions and other factors such as historical experience, current and expected economic conditions. Actual results could differ from these estimates.

The significant judgments and estimates used in the preparation of these Consolidated Financial Statements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities and earnings within the next financial year include:

<u>Osgood Mining Company LLC Acquisition</u>

With regard to the acquisition of Osgood, management followed the guidance within IFRS 3 – Business Combinations and determined that the transaction should be accounted for as an asset acquisition. In such cases, the acquirer identifies and recognizes the individual identifiable assets acquired and liabilities assumed. The cost of the group is allocated to the individual identifiable assets and liabilities on the basis of their relative fair values at the date of purchase. Such a transaction or event will not give rise to recording goodwill.

The Osgood transaction was recorded based on the total consideration paid for the assets. Total consideration paid in excess of the acquired assets' book values represented the fair value of the net assets acquired and was attributable to the acquired mineral interests.

For contingent consideration and payments, an accounting policy choice exists, and an entity may recognize a liability for the expected variable payments at the time control of the underlying asset is obtained or they may only recognize such a liability as the related activity that gives rise to the variability occurs. For the Osgood acquisition, management has not recognized any liability for contingent payments as the performance conditions required for these payments had not been met as of the date the assets were acquired.

<u>Acquisition of Ruby Hill</u>

The acquisition of Ruby Hill was assessed by management under the guidance of IFRS 3 – Business Combinations, management determined that they acquired a business and therefore accounted for the acquisition as a business combination under this standard. The fair value of assets acquired and liabilities assumed in this business combination, including deferred consideration, was estimated based on information available at the date of acquisition. Various valuation techniques were applied for measuring fair value including market comparables and discounted cash flows which rely on assumptions such as forward commodity prices, quantity of mineral resources, mining and processing costs and discount rates. Changes in these variables could significantly impact the carrying value of the net assets.

Deferred consideration related to Ruby Hill is recognized as a financial liability at FVPL. In determining fair value on acquisition and at each reporting period, management judgement was required in respect to input variables of the financial model used for estimation purposes. These variables include management's best estimate that the early prepayment options will be exercised for all milestone payments and a discount rate that reflects the risk associated with the payment of contingent consideration.

<u>Asset Exchange with Nevada Gold Mines LLC</u>

The Asset Exchange with Nevada Gold Mines LLC was assessed by management under the guidance of IFRS 3 – Business Combinations. Management determined the assets acquired in this transaction did not meet the definition of a business and therefore accounted for the acquisition as an asset acquisition. As the consideration for this transaction was largely the South Arturo operations, the fair value of consideration given could not be measured as reliably as the fair value of the assets acquired and so management took the approach of valuing the assets acquired at fair value instead of the consideration paid, The fair value of assets acquired and liabilities assumed in this asset acquisition, was estimated based on information available at the date of acquisition. Various valuation techniques were applied for measuring fair value including market comparables and discounted cash flows which rely on assumptions such as forward commodity prices, quantity of mineral resources, mining and processing costs and discount rates. Changes in these variables could significantly impact the carrying value of the net assets. A gain was recognized on this transaction, which reflected the difference between the carrying value of the non-cash consideration and its fair value.

<u>Assets held for sale and discontinued operations</u>

Significant judgement was required in the application of IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations ("IFRS 5") regarding the Company's 40% interest in the South Arturo asset classification as assets held for sale and classification as a discontinued operation.

In October, 2021, the Company announced that it had entered into a definitive agreement with Nevada Gold Mines ("NGM") whereby the Company acquired the Lone Tree and Buffalo Mountain gold deposits in exchange for (among other consideration) the Company's 40% interest in the South Arturo property. Management determined that the South Arturo asset should be classified as a discontinued operation in the Consolidated Financial Statements.

------

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

<u>Provisions for environmental rehabilitation</u>

Management assesses the provisions for environmental rehabilitation on acquisition, on an annual basis or when new information becomes available. This assessment includes the estimation of the future rehabilitation costs required based on the existing laws and regulations in each jurisdiction the Company operates in, the timing of these expenditures, and the impact of changes in the discount rate. The actual future expenditures may differ from the amount currently provided if the estimates made are significantly different than actual results or if there are significant changes in environmental and / or regulatory requirements in the future.

<u>Valuation of financial instruments</u>

The Company issued warrants as further described in Note 1 and Note 12(i) of these Financial Statements. The warrants are considered derivatives because their exercise price is in C$ whereas the Company's functional currency is in USD. Accordingly, the Company recognizes the warrants as liabilities at fair value with changes in fair value recognized in profit or loss. In determining fair value, management judgement is required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as the Company's share price, share price variability, trading volumes and risk-free rates of return. The fair value of the warrants recognized on inception were calculated using Premier's share price volatility and at December 31, 2022, and December 31, 2021, using i-80 Gold's share price volatility.

The financing instruments described in Note 1(d) were valued by simulating the relevant prices of the underlying assets; gold, silver and the Common Shares, from December 9 or 13, 2021, to their respective maturity dates of each financial instrument, using LongstaffSchwartx MonteCarlo simulation, assuming they follow correlated Geometric Brownian Motion and modeling the payoffs of each financial instrument in the Financing Package. The derivatives (including embedded) were fair valued with the residual balance being allocated to the host contracts. The derivatives (including embedded) will continue to be recognized at FVPL whilst the host contracts are at amortized cost.

The conversion and change of control rights contained in the Convertible Loans are recognized as derivative liabilities and separately measured at FVPL each reporting period. In determining the fair value at each reporting period, management judgement is required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as managements estimate of the probability and date of a change of control event, the Company's share price, share price variability, credit spreads, and interest rates.

The Gold Prepay Agreement is recognized as a financial liability at amortized cost and it contains an embedded derivative in relation to the embedded gold price within the agreement that is measured at FVPL each reporting period. In determining the fair value of the embedded derivative at each reporting period, management judgement is required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as metal prices, metal price volatility, and risk free borrowing rates.

The Silver Purchase Agreement is recognized as a financial liability at amortized cost and it contains two embedded derivatives; one in relation to the embedded silver price within the agreement and the other in relation to the gold substitution option whereby i-80 Gold can choose to deliver gold instead of silver at a ratio of 75:1, both are measured at FVPL each reporting period. In determining the fair value of the embedded derivatives at each reporting period, management judgement is required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as metal prices, metal price volatility, risk free borrowing rates and the Company's production profile.

The South Arturo Stream Agreement is recognized as a financial liability at FVPL. In determining the fair value of the Stream Agreement management judgement was required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as the Company's production profile, credit spread, and metal prices. Using the inputs above the Company used a discounted cash flow analysis to determine the present value of the financial liability.

<u>Valuation of Inventories</u>

Finished goods, work-in-process, heap leach ore and stockpile ore are valued at the lower of cost and NRV. The assumptions used in the valuation of work-in-process inventories include estimates of gold contained in the ore stacked on leach pads, assumptions of the amount of gold stacked that is expected to be recovered from the leach pads, and the amount of gold in the mill circuits. The determination of NRV involves the use of estimates. The NRV of inventories is calculated as the estimated price at the time of eventual sale based on prevailing and forecast metals prices less estimated future costs to convert the inventories into saleable form and associated selling costs. The NRV of inventories is assessed at the end of each reporting period. Changes in estimates of NRV may result in a write-down of inventories or the reversal of a previous write-down.

------

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

<u>Recoverable ounces</u>

The carrying amounts of the Company's mining property is depleted based on recoverable ounces contained in proven and probable mineral reserves. Changes to estimates of recoverable ounces and depletable costs including changes resulting from revisions to mine plans and changes in metal price forecasts can result in a change in future depletion rates.

The figures for mineral reserves and mineral resources are determined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects, issued by the Canadian Securities Administrators. This National Instrument lays out the standards of disclosure for mineral projects including rules relating to the determination of mineral reserves and mineral resources. There are numerous uncertainties inherent in estimating mineral reserves and mineral resources, including many factors beyond the Company's control. Such estimation is a subjective process, and the accuracy of any mineral reserve or mineral resource estimate is a function of the quantity and quality of available data and of the assumptions made and judgements used in engineering and geological interpretation. Differences between management's assumptions, and actual events including economic assumptions such as metal prices and market conditions, could have a material effect in the future on the Company's financial position and results of operation.

<u>Impairment and reversal of impairment for non-current assets</u>

Non-current assets are tested for impairment at the end of each reporting period if in management's judgement there is an indicator of impairment. If there are indicators, management performs an impairment test on the major assets within this balance.

In the case of mineral property assets, recoverability is dependent on a number of factors common to the natural resource sector. These include the extent to which the Company can continue to renew its exploration and future development licenses with local or other authorities, establish economically recoverable reserves on its properties, the availability of the Company to obtain necessary financing to complete the development of such reserves and future profitable production or proceeds from the disposition thereof. The Company will use the evaluation work of professional geologists, geophysicists and engineers for estimates in determining whether to commence or continue mining and processing. These estimates generally rely on scientific and economic assumptions, which in some instances may not be correct, and could result in the expenditure of substantial amounts of money on a deposit before it can be determined whether or not the deposit contains economically recoverable mineralization.

&nbsp;&nbsp;&nbsp;&nbsp;**3.ADOPTION OF NEW ACCOUNTING STANDARDS**

**New Accounting Standards and Interpretations not yet Adopted**

*IAS 1 - Classification of liabilities as current or non-current*

In January 2020, the IASB issued amendments to IAS 1 - Presentation of Financial Statements to clarify that liabilities are classified as either current or non-current, depending on the existence of the substantive right at the end of the reporting period for an entity to defer settlement of the liability for at least twelve months after the reporting period. The amendments are effective January 1, 2024 with early adoption permitted. The amendments are required to be adopted retrospectively. The Company does not anticipate any significant impact from these amendments on the financial statements as a result of initial application.

*Amendments to IAS 12 and IFRS 1 – Deferred taxes related to assets and liabilities arising from a single transaction*

In May 2021, the IASB issued amendments to IAS 12 - Income Taxes, which requires companies to recognize deferred tax on particular transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and are to be applied retrospectively. The Company does not expect a material impact from this amendment on the financial statements as a result of the initial application.

------

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**4.DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE AND DISCONTINUED OPERATIONS**

In October 2021, the Company and NGM completed an exchange agreement whereby the Company acquired the Lone Tree and Buffalo Mountain properties in exchange for the Company's 40% interest in the South Arturo property. As a result, assets and liabilities allocable to the South Arturo assets were classified as a disposal group held for sale. Revenue and expenses, gains and losses relating to the discontinuation of South Arturo have been eliminated from profit or loss from the Company's continuing operations and are shown as a single line item in the statement of profit or loss in the comparative period.

Operating profit of the South Arturo asset classified as held for sale in the comparative period is summarized as follows:

---

| | |
|:---|:---|
| | Year ended <br>December 31, 2021 |
| **Revenue** | $31991 |
| Cost of sales | (17207) |
| Depletion, depreciation and amortization | (1691) |
| **Mine operating income from discontinued operations** | **13093** |
| **Expenses** |  |
| Exploration, evaluation and pre-development | 1034 |
| General and administrative | 175 |
| **Income from discontinued operations before the following** | **11884** |
| Environmental rehabilitation accretion | (44) |
| Other | 16 |
| **Other expense** | **(28)** |
| **Income from discontinued operations before income taxes** | **11856** |
| Current tax expense | (253) |
| **Income from discontinued operations for the period** | $**11603** |

---

The carrying amounts of assets and liabilities in this disposal group are summarized as follows:

---

| | |
|:---|:---|
| | October 14, 2021 |
| **ASSETS** |  |
| **Current assets** |  |
| Cash and cash equivalents | $3361 |
| Inventory | 3184 |
| **Total current assets** | **6545** |
| **Non-current assets** |  |
| Restricted cash and cash equivalents | 5483 |
| Long-term inventory | 3125 |
| Property, plant and equipment | 35710 |
| **Total non-current assets** | **44318** |
| **Total assets** | $**50863** |
| **LIABILITIES** |  |
| **Current liabilities** |  |
| Accounts payable | $3539 |
| Accrued liabilities | 26 |
| Taxes payable | 111 |
| Current provision for environmental rehabilitation | 4 |
| **Total current liabilities** | **3680** |
| **Non-current liabilities** |  |
| Deferred taxes | 897 |
| Provision for environmental rehabilitation | 3467 |
| **Total non-current liabilities** | **4364** |
| **Total liabilities** | $**8044** |

---

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**5.INVENTORY**

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | December 31,<br>2021 |
| Ore in stockpiles and on leach pads | $**12492** | $22477 |
| Work-in-process | **3059** | 3523 |
| Finished goods | **984** |  |
| **Total inventory** | $**16535** | $26000 |

---

The amount of inventory recognized as an expense in cost of sales for the year ended December 31, 2022 was $28.9 million (nil for the year ended December 31, 2021).

During the year ended December 31, 2022, the Company recognized within cost of sales $6.4 million (nil for the year ended December 31, 2021) in write-downs of inventory to NRV relating to heap leach ore at Ruby Hill and Lone Tree.

&nbsp;&nbsp;&nbsp;&nbsp;**6.OTHER ASSETS**

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | December 31,<br>2021 |
| Investment in Paycore (i) | $**2185** | $2650 |
| Gold Prepay Agreement embedded derivative (ii)  | **2916** |  |
| Silver Purchase Agreement embedded derivative (iii)  | **1898** |  |
| Other assets (iv) | **1768** |  |
| Total other assets | **8767** | 2650 |
| Less current portion | **6280** | 2650 |
| Long-term portion | $**2487** | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;On May 11, 2021, the Company completed a subscription agreement to purchase common shares (the "Purchased Securities") from Paycore Minerals Inc. ("Paycore"), whereby the Company agreed to purchase 800,000 common shares at a price of C$1.00 per common share for aggregate of C$0.80 million. On December 3, 2021, the Company completed an additional subscription agreement

to purchase 800,000 common shares at a price of C$2.10 per common share for aggregate of C$1.68 million, bringing the Company's

total investment to C$2.48 million ($1.95 million). On April 25, 2022, shares of Paycore were listed and posted for trading on the TSXV under the symbol "CORE.V".

The Company records its investment in Paycore at fair value as further described in Note 24(d) of these Financial Statements. At December 31, 2022, the fair value of the Company's investment in Paycore was C$2.96 million ($2.19 million). For the year ended December 31, 2022, the Company recorded a fair value loss related to the revaluation of the investment of $0.3 million (gain of $0.7 million for the year ended December 31, 2021) through the statement of income as further described in Note 18 of these Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;The asset balance represents the embedded derivative in relation to the fixed gold price included in the Gold Prepay Agreement as further described in Note 1(d), Note 10(iv), and Note 24(d) of these Financial Statements. The Company recognizes the embedded derivative at fair value with changes in fair value recognized in profit or loss. For the year ended December 31, 2022, the Company recorded a fair value gain related to the valuation of the embedded derivative of $2.9 million through the statement of income as further described in Note 18 of these Financial Statements. As of December 31, 2022, the current portion of the Gold Prepay Agreement embedded derivative was $1.3 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;The asset balance represents the embedded derivative in relation to the silver price included in the Silver Purchase Agreement as further described in Note 1(d), Note 10(v), and Note 24(d) of these Financial Statements. The Company recognizes the embedded derivative at fair value with changes in fair value recognized in profit or loss. For the year ended December 31, 2022, the Company recorded a fair value gain related to the valuation of the embedded derivative of $1.9 million through the statement of income as further described in Note 18 of these Financial Statements. As of December 31, 2022 the current portion of the Silver Purchase Agreement embedded derivative was $1.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;This balance represents other non-core assets acquired in the Argenta Property acquisition, as further described in Note 1(b) of these Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;**7.LONG-TERM RECEIVABLE**

The receivable in the comparative period is Alternative Minimum Tax ("AMT") recoverable due to the enactment of U.S. Tax Reform legislation on December 22, 2017. The Company had a total of $1.43 million in AMT credits as a result of the Corona Virus Aid, Relief, and Economic Security ("CARES") Act which was enacted March 27, 2020. During the year ended December 31, 2022, the Company recovered the balance receivable plus accrued interest.

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**8.RESTRICTED CASH AND CASH EQUIVALENTS**

---

| | | |
|:---|:---|:---|
| **Property** | **December 31,<br>2022** | December 31,<br>2021 |
| McCoy-Cove, Nevada (i) | $**1955** | $600 |
| Lone Tree, Nevada (ii) | **25877** | 25593 |
| Ruby Hill, Nevada (iii) | **4604** | 4584 |
| Granite Creek, Nevada (iv) | **466** |  |
| Total restricted cash and cash equivalents | $**32902** | $30777 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Company has $2.0 million in restricted cash relating to the reclamation of the Company's McCoy-Cove property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The Company has $25.9 million in restricted cash relating to the reclamation of the Company's Lone Tree property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) &nbsp;&nbsp;&nbsp;&nbsp;The Company has $4.6 million in restricted cash relating to the reclamation of the Company's Ruby Hill property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) &nbsp;&nbsp;&nbsp;&nbsp;The Company has $.5 million in restricted cash relating to the reclamation of the Company's Granite Creek property.

&nbsp;&nbsp;&nbsp;&nbsp;**9.PROPERTY, PLANT AND EQUIPMENT**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Cost** | **Mine properties**<br>**(i)** | **Development properties**<br>**(ii)** | **Exploration, evaluation and pre-development properties**<br>**(iii)** | **Buildings, plant and equipment** | **Total** |
| **Balance as at January 1, 2021** | $96537 | $30902 | $52463 | $18490 | $**198392** |
| Additions | 3677 | 69049 | 169195 | 199952 | **441873** |
| Disposals |  |  |  | (3) | **(3)** |
| IFRS 16 Right of Use assets |  |  |  | 634 | **634** |
| Change in estimate of provision for environmental rehabilitation |  | 318 | 1762 |  | **2080** |
| Transfers | (355) | 2703 | (200) | (2148) | **—** |
| Adjustments |  |  |  | (26) | **(26)** |
| Classified as held for sale | (97699) | (26587) |  | (10658) | **(134944)** |
| **Balance as at December 31, 2021** | 2160 | 76385 | 223220 | 206241 | **508006** |
| Additions |  | 32422 | 241 | 23450 | **56113** |
| Disposals |  |  |  | (24) | **(24)** |
| IFRS 16 Right of Use assets |  |  |  | 280 | **280** |
| Transfers |  | 899 | 7182 | (8081) | **—** |
| Change in estimate of provision for environmental rehabilitation |  | (994) | (22608) |  | **(23602)** |
| **Balance as at December 31, 2022** | $**2160** | $**108712** | $**208035** | $**221866** | $**540773** |
| **Accumulated depreciation and impairment** |  |  |  |  |  |
| **Balance as at January 1, 2021** | $93298 | $— | $— | $4938 | $**98236** |
| Depletion, depreciation and amortization | 2877 |  |  | 3481 | **6358** |
| Disposals |  |  |  | (3) | **(3)** |
| Classified as held for sale | (94015) |  |  | (5219) | **(99234)** |
| **Balance as at December 31, 2021** | 2160 |  |  | 3197 | **5357** |
| Depletion, depreciation and amortization |  |  |  | 6177 | **6177** |
| Disposals |  |  |  | (22) | **(22)** |
| **Balance as at December 31, 2022** | $**2160** | $**—** | $**—** | $**9352** | $**11512** |
| **Carrying amounts** |  |  |  |  |  |
| Balance, December 31, 2021 | $— | $76385 | $223220 | $203044 | $**502649** |
| **Balance as at December 31, 2022** | $**—** | $**108712** | $**208035** | $**212514** | $**529261** |

---

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Mine properties:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Property | January 1,<br>2021 | Additions | Transfers | Depletion | Classified as held for sale | December 31, 2021 |
| Ruby Hill, Nevada<sup>1</sup> | $— | $2160 | $— | $(2160) | $— | $**—** |
| South Arturo, Nevada <sup>2</sup> | 3239 | 1517 | (355) | (717) | (3684) | **—** |
| Total | $3239 | $3677 | $(355) | $(2877) | $(3684) | $**—** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Development properties:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Property** | **January 1, 2022** | **Additions** | **Change in estimate of environmental provision** | **Transfers** | **Classified as held for sale** | **December 31, 2022** |
| South Arturo, Nevada | $— | $— | $— | $— | $— | $**—** |
| Granite Creek, Nevada | 76385 | 32422 | (994) | 899 |  | **108712** |
| Total | $76385 | $32422 | $(994) | $899 | $— | $**108712** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Property | January 1,<br>2021 | Additions | Change in estimate of environmental provision | Transfers | Classified as held for sale | December 31, 2021 |
| South Arturo, Nevada | $23402 | $482 | $— | $2703 | $(26587) | $— |
| Granite Creek, Nevada | 7500 | 68567 | 318 |  |  | 76385 |
| Total | $30902 | $69049 | $318 | $2703 | $(26587) | $76385 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Exploration, evaluation and pre-development properties:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Property** | **January 1, 2022** | **Additions** | **Change in estimate of environmental provision** | **Transfers** | **Classified as held for sale** | **December 31, 2022** |
| McCoy-Cove, Nevada | $54105 | $— | $(84) | $7182 | $— | $**61203** |
| Ruby Hill, Nevada | 103594 |  | (10705) |  |  | **92889** |
| Lone Tree, Nevada | 65521 |  | (12988) |  |  | **52533** |
| Argenta, Nevada |  | 241 | 1169 |  |  | **1410** |
| Total | $223220 | $241 | $(22608) | $7182 | $— | $**208035** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Property | January 1,<br>2021 | Additions | Change in estimate of environmental provision | Transfers | Classified as held for sale | December 31, 2021 |
| McCoy-Cove, Nevada | $52213 | $— | $1842 | $50 | $— | $**54105** |
| Ruby Hill, Nevada |  | 103674 | (80) |  |  | **103594** |
| Rodeo Creek, Nevada | 250 |  |  | (250) |  | **—** |
| Lone Tree, Nevada |  | 65521 |  |  |  | **65521** |
| Total | $52463 | $169195 | $1762 | $(200) | $— | $**223220** |

---

<sup>1</sup> The Ruby Hill property relates to the Archimedes open pit, fully depleted in Q4 2021.

<sup>2</sup> The South Arturo property was disposed of October 14, 2021, as part of the Asset Exchange with NGM.

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Depreciation, depletion and amortization on property, plant and equipment during the year ended December 31, 2022 and 2021 include amounts allocated to:

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Depreciation, depletion and amortization | $**4528** | $— |
| Recorded in exploration, evaluation and pre-development | **484** | 198 |
| Recorded in general and administrative | **346** | 163 |
| Recorded in property maintenance | **816** |  |
| Depreciation, depletion and amortization capitalized into properties | **215** |  |
| Depreciation, depletion and amortization in discontinued operations | **—** | 1691 |
|  | **6389** | 2052 |
| Inventory movement | **(212)** | 4306 |
| Total depletion, depreciation and amortization | $**6177** | $6358 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)The Company's leased assets include buildings and vehicles. Right-of-use assets include:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Buildings** | **Equipment** | **Vehicles** | **Total** |
| **As at December 31, 2020** | $91 | $— | $3 | $**94** |
| Additions | 635 |  |  | **635** |
| Terminations | 26 |  |  | **26** |
| Depreciation | 118 |  | 3 | **121** |
| **As at December 31, 2021** | 582 |  |  | **582** |
| Additions |  | 280 |  | **280** |
| Depreciation | 212 | 128 |  | **340** |
| **As at December 31, 2022** | $370 | $152 | $— | $**522** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**(a)Impairment**

The Company regularly reviews the carrying amount of its non-financial assets to determine whether there is any indication that those assets have suffered an impairment loss. Mineral property interests are tested for impairment when events or changes in circumstances indicate that their carrying amount may not be recoverable. In the absence of other factors, a mineral property that has not been actively explored within the past three years and for which no future exploration plans exist will be considered to be impaired. There were no impairments recorded for the year ended December 31, 2022, and 2021.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)Acquisitions and option agreements**

*Granite Creek Project*

As disclosed in Note 1(b) of these Financial Statements, the Granite Creek Project was acquired through the acquisition agreement with Osgood and Christison. The purchase price paid in 2021 was a combination of non-cash shares and warrants of $38.0 million and cash of $23.2 million. In 2020, $2.3 million in cash was paid on deposit to Waterton on the purchase of Osgood; and $7.5 million in cash was paid for the Christison Project, which was transferred into the Granite Creek Project in 2021.

On May 6, 2022, the Company entered into an agreement to acquire strategic land sections adjoining the Company's Granite Creek Property from NGM. The total consideration for the purchase of the property sections consists of a cash payment of $4.0 million and the inclusion of the acquired sections into the existing 10% net profits royalty that NGM currently holds on the existing property.

In September 2022, the Company paid to Waterton $5.0 million as part of the contingent value rights payment due upon the public announcement of a positive production decision related to the Granite Creek Project. As further described in Note 1(b) of these Financial Statements, on acquisition of Osgood the Company did not recognize contingent payments as the conditions required for these payments had not been met as of the date the assets were acquired. The $5.0 million contingent value rights payment is recorded in property, plant and equipment on the consolidated statements of financial position at December 31, 2022.

*Tabor Exploration and Option Agreement*

On August 24, 2020, the Company through its wholly owned subsidiary Au-Reka Gold Corporation ("Au-Reka") entered into an option agreement with Renaissance Exploration, Inc. to acquire a 100% interest in the Tabor Project located in Esmeralda County, Nevada. The option agreement is subject to a firm commitment to spend $0.3 million towards exploration activities by the one-year anniversary date that the Company acquires an exploration permit on the property plus initial earn-in option payments of $5.2 million.

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**(c)Summary of mineral property Net Smelter Return ("NSR") royalties (as at December 31, 2022)**

---

| | |
|:---|:---|
| **Active properties** | **NSR (i)** |
| McCoy-Cove, Nevada | 1.5% NSR Maverix Metals Inc. |
|  | 2% NSR Maverix Metals Inc. |
| Tabor, Nevada | 3% NSR Renaissance |
| Granite Creek | 1-4% NSR Royal Gold/D.M. Duncan |
|  | 3-5% NSR Royal Gold/D.M. Duncan |
|  | 2% NSR Franco-Nevada/S&G Pinson |
|  | Portions of 7.5% NSR Stoffer/Noceto/Phillips |
|  | 2% NSR Stoffer/Noceto/Phillips/Murphy/Christison |
|  | 10% NPI Nevada Gold Mines |
|  | 2% Newmont Capital Limited |
| Lone Tree | 3% NSR |
|  | 5% NSR VEK/Andrus |
|  | 1% NSR Franco-Nevada Mining Corporation, Inc. |
|  | 4-5% NSR Marigold Mining Company |
|  | 5% NSR Richardson |
|  | 5% NSR BTF Properties |
| Ruby Hill | 2.5% NSR Placer Dome U.S. Inc. |
|  | 3% Biale Trust |
|  | 4% NSR Asarco Incorporated |
|  | 3% RG Royalties |
| **Inactive properties** | **NSR** |
| Rodeo Creek, Nevada | 2% NSR Nevada Select Royalty Inc |
| South Arturo, Nevada | 4-9% Annual minimum royalty Franco-Nevada Corporation |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)These royalties are tied to specific mining claims and may not apply to the entire property.

&nbsp;&nbsp;&nbsp;&nbsp;**10.LONG-TERM DEBT**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Orion convertible credit**<br>**(i)** | **Sprott convertible credit**<br>**(ii)** | **Stream Agreement<br>(iii)** | **Gold Prepay Agreement**<br>**(iv)** | **Silver Purchase Agreement**<br>**(v)** | **Other**<br>**(vi), (vii)** | **Total** |
| **As at January 1, 2021** | $— | $— | $— | $— | $— | $105 | $**105** |
| Fair value on inception | 32745 | 7634 | 853 |  |  |  | **41232** |
| Loan advance |  |  |  |  |  | 20750 | **20750** |
| Additions and adjustments |  |  |  |  |  | 799 | **799** |
| Principal repayment |  |  | (11) |  |  | (20859) | **(20870)** |
| Disposals |  |  | (897) |  |  |  | **(897)** |
| Fair value adjustments |  |  | 55 |  |  |  | **55** |
| Finance charge | 211 | 51 |  |  |  |  | **262** |
| **As at December 31, 2021** | 32956 | 7685 |  |  |  | 795 | **41436** |
| Fair value on inception |  |  |  | 41737 | 29889 |  | **71626** |
| Additions and adjustments |  |  |  |  |  | 334 | **334** |
| Amortization of finance costs | 308 |  |  | 45 |  |  | **353** |
| Principal repayment |  |  |  | (14498) | (134) | (348) | **(14980)** |
| Finance charge | 6477 | 1218 |  | 6720 | 2692 |  | **17107** |
| **As at December 31, 2022** | $**39741** | $**8903** | $**—** | $**34004** | $**32447** | $**781** | $**115876** |
| Less current portion |  | **—** |  | **9610** | **11208** | **470** | **21288** |
| **Long-term portion** | $**39741** | $**8903** | $**—** | $**24394** | $**21239** | $**311** | $**94588** |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i)Orion convertible credit*

On December 13, 2021, the Company entered into a Convertible Credit Agreement with Orion to borrow $50 million. The Orion convertible credit bears interest at a rate of 8.0% annually and matures on December 13, 2025. The Orion convertible credit contains a change of control feature, a conversion feature, and a forced conversion feature that are considered embedded derivatives by the Company. The change of control feature and conversion feature are classified as derivative financial liabilities, measured at FVTPL, whereas the forced conversion feature is classified as an equity instrument measured at fair value on inception and is not subsequently remeasured. During the year ended December 31, 2022, none of the features were exercised. The derivative financial liability was recorded at $13.6 million at inception and $27.0 million at December 31, 2022 ($18.5 million at December 31, 2021). For the year ended December 31, 2022, the Company recorded a fair value loss related to the valuation of the embedded derivatives of $8.5 million (loss of $4.9 million for the year ended December 31, 2021) through the statement of income as further described in Note 18 of these Financial Statements. The equity instrument was recorded at $2.0 million at inception and period end.

The Orion convertible note is presented in the balance sheet as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | December 31,<br>2021 |
| Opening balance | $**32956** | $— |
| Fair value of notes issued | **—** | 50000 |
| Other liabilities | **—** | (17230) |
| Other equity securities | **—** | 2029 |
| Deferred financing costs and other | **—** | (2054) |
|  | $**32956** | $32745 |
| Amortization of finance costs | **308** |  |
| Finance expense | **6477** | 211 |
| Non-current liability | $**39741** | $32956 |

---

Interest expense is calculated by applying the effective interest rate of 18.90% to the host liability component. Interest expense is included in finance expense.

The initial fair value of the liability portion of the convertible loan was determined using a market interest rate for an equivalent non- convertible loan at the issue date. The liability is subsequently recognized on an amortized cost basis until extinguished on control, conversion or maturity of the loan. The remainder of the proceeds, after removing components classified as liabilities, is allocated to the forced conversion option and recognized in shareholder's equity, net of income tax, and not subsequently remeasured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii)Sprott convertible credit*

On December 10, 2021, the Company entered into a Convertible Credit Agreement with Sprott to borrow $10 million. The Sprott convertible credit bears interest at a rate of 8.0% annually and matures on December 9, 2025. The Sprott convertible credit contains a change of control feature, a conversion feature, and a forced conversion feature that are considered embedded derivatives by the Company. The change of control feature and conversion feature are classified as derivative financial liabilities, measured at FVTPL whereas the forced conversion feature is classified as an equity instrument measured at fair value on inception and is not subsequently remeasured. During the period ended December 31, 2022, none of the features were exercised. The derivative financial liability was recorded at $2.7 million at inception and $5.3 million at December 31, 2022 ($3.9 million at December 31, 2021). For the year ended December 31, 2022, the Company recorded a fair value loss related to the valuation of the embedded derivatives of $1.4 million (loss of $1.2 million for the year ended December 31, 2021) through the statement of income as further described in Note 18 of these Financial Statements. The equity instrument was recorded at $0.4 million at inception and period end.

The Sprott convertible note is presented in the balance sheet as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | December 31,<br>2021 |
| Opening balance | $**7685** | $— |
| Fair value of notes issued | **—** | 10000 |
| Other financial liabilities | **—** | (2733) |
| Other equity securities | **—** | 367 |
|  | $**7685** | $7634 |
| Finance expense | **1218** | 51 |
| Non-current liability | $**8903** | $7685 |

---

Interest expense is calculated by applying the effective interest rate of 14.92% to the host liability component. Interest expense is included in finance expense.

The initial fair value of the liability portion of the convertible loan was determined using a market interest rate for an equivalent non- convertible loan at the issue date. The liability is subsequently recognized on an amortized cost basis until extinguished on control, conversion or maturity of the loan. The remainder of the proceeds, after removing components classified as liabilities, is allocated to the forced conversion option and recognized in shareholder's equity, net of income tax, and not subsequently remeasured.

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iii)Stream Agreement*

The Stream Agreement was tied to production from South Arturo and as part of the Asset Exchange with NGM the fair value as of October 14, 2021, was included in the disposal group classified as held for sale.

On April 7, 2021, the Company entered into a Stream Agreement with Nomad, whereby the Company will deliver from South Arturo to Nomad (i) 100% of the refined silver from minerals from the main stream area, and (ii) 50% of the refined silver from the exploration stream area. Nomad will pay an ongoing cash purchase price equal to 20% of the silver market price on the day immediately preceding the date of delivery. Following the delivery of an aggregate amount of refined silver equal to $1.0 million to Nomad under the Stream Agreement, Nomad will continue to purchase the refined silver at an ongoing cash purchase price equal to 20% of the prevailing silver price. The principal repayment on the liability is variable based on 80% of the silver price applied to ounces delivered under the contract. The Stream Agreement is unsecured and the initial term of the agreement is 40 years.

The liability has been recorded as a reduction in the equity issued on the spin-out of Premier USA to the Company as the agreement resulted from the Silver Stream Agreement with Nomad that existed with Premier prior to the spin-out. The initial fair value of the Stream Agreement recognized on inception was $0.9 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iv)Gold Prepay Agreement*

On December 13, 2021, the Company entered into a Gold Prepay Agreement with Orion. In April 2022, the Gold Prepay Agreement was amended as further described in Note 1(d) of these Financial Statements. Under the terms of the amended Gold Prepay Agreement, in exchange for $41.9 million, the Company is required to deliver to Orion 3,100 troy ounces of gold for the quarter ending June 30, 2022, and thereafter, 2,100 troy ounces of gold per calendar quarter until September 30, 2025, for aggregate deliveries of 30,400 troy ounces of gold. As of December 31, 2022, the Company had delivered 7,300 troy ounces of gold towards the Gold Prepay Agreement with Orion, leaving 23,100 ounces remaining to be delivered under the agreement.

The Gold Prepay Agreement is recognized as a financial liability at amortized cost and it contains an embedded derivative in relation to the embedded gold price within the agreement that is measured at FVTPL each reporting period, as further described in Note 6(ii) and Note 24(d) of these Financial Statements.

Interest expense is calculated by applying the effective interest rate of 24.48% to the financial liability. Interest expense is included in finance expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(v)Silver Purchase Agreement*

On December 13, 2021, in exchange for $30 million, the Company entered into a Silver Purchase Agreement with Orion. Under the Silver Purchase Agreement, commencing April 30, 2022, the Company will deliver to Orion 100% of the silver production from the Granite Creek and Ruby Hill projects until the delivery of 1.2 million ounces of silver, after which the delivery will be reduced to 50% until the delivery of an aggregate of 2.5 million ounces of silver, after which the delivery will be reduced to 10% of the silver production solely from Ruby Hill Project. Orion will pay the Company an ongoing cash purchase price equal to 20% of the prevailing silver price. Until the delivery of an aggregate of 1.2 million ounces of silver, the Company is required to deliver the following minimum amounts of silver in each calendar year: (i) in 2022, 300,000 ounces, (ii) in 2023, 400,000 ounces, (iii) in 2024, 400,000 ounces, and (iv) in 2025, 100,000 ounces. The Silver Purchase Agreement was funded April 2022.

As of December 31, 2022, the Company had delivered 6,491 ounces of silver towards the Silver Purchase Agreement with Orion. Subsequent to the year ended December 31, 2022, the Company delivered 293,509 ounces of silver to Orion in satisfaction of the 2022 Annual Minimum Delivery Amount. The current portion of the liability is $11.2 million at December 31, 2022, which includes 293,509 ounces delivered January 13, 2023, in relation to the 2022 Annual Minimum Delivery Amount and 400,000 ounces in relation to the 2023 Annual Minimum Delivery Amount.

The Silver Purchase Agreement is recognized as a financial liability at amortized cost and it contains two embedded derivatives as further described in Note 6(iii) and Note 24 (d) of these Financial Statements.

Interest expense is calculated by applying the effective interest rate of 12.28% to the financial liability. Interest expense is included in finance expense.

The obligations under the Gold Prepay Agreement and Silver Purchase Agreement are senior secured obligations of the Company as further described in Note 1(b) of these Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(vi)Equinox loan agreement*

In the first quarter of 2021, Equinox Gold advanced to the Company a $20.8 million bridge loan that the Company then advanced to Premier USA for the purposes of making a deposit with affiliates of Waterton in partial satisfaction of the purchase price payable to Waterton for the acquisition of the Granite Creek Project as further described in Note 1(b) of these Financial Statements. The loan matured April 16, 2021, 10 days following the closing of the arrangement and bore interest at a rate of 5% per annum payable in arrears on the maturity date. The loan was secured against the assets of the Company, Premier and Premier USA, and subordinated to the security of Premier's existing secured creditors. The loan matured and the principal balance of $20.8 million along with accrued interest of $0.06 million was repaid through a combination of the Equinox Gold subscription receipts in the amount of $19.2 million and the remainder in cash following the closing of the Transaction.

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(vii)Lease liability*

Lease liabilities relate to leases on buildings and mobile mining equipment which have a remaining lease term between one and two years and an interest rate between 3.3% and 14.4% over the term of the lease.

The schedule of undiscounted lease payment obligations is as follows:

---

| | |
|:---|:---|
| | **December 31,<br>2022** |
| Less than one year | $432 |
| One to three years | 192 |
| Total undiscounted lease liabilities | $624 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**11.PROVISION FOR ENVIRONMENTAL REHABILITATION**

The Company's provision for environmental rehabilitation results from mining equipment and previously mined property interests. The provision consists primarily of costs associated with mine reclamation and closure activities. These activities, which tend to be site specific, generally include costs for decommissioning the mill complex and related infrastructure, physical and chemical stability of the tailings area and, post-closure site security and monitoring costs. The Company considers such factors as changes in laws and regulations, and requirements under existing permits in determining the estimated costs. Such analysis is performed on an on-going basis.

The Company estimates that the undiscounted un-inflated value of the cash flows required to settle the provision is $8.6 million for the McCoy-Cove property, $1.8 million for the Granite Creek property, $67.5 million for the Lone Tree property, $18.1 million for the Ruby Hill property and $1.2 million for the Argenta property. In calculating the best estimate of the Company's provision, management used risk-free interest rates ranging from 3.88% to 4.14%. A reconciliation of the discounted provision is provided below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Argenta** | **McCoy-Cove** | **Granite Creek** | **Lone Tree** | **Ruby Hill** | **Total** |
| Balance as at January 1, 2022 | $— | $6684 | $2394 | $60592 | $23179 | $**92849** |
| Acquisitions | 1170 |  |  | 77 |  | **1247** |
| Change in estimate capitalized |  | (84) | (995) | (13066) | (10704) | **(24849)** |
| Accretion expense |  | 212 | 74 | 1917 | 798 | **3001** |
| Reclamation expenditures |  |  |  | (622) |  | **(622)** |
| Disposal |  |  |  |  |  | **—** |
| Balance as at December 31, 2022 | 1170 | 6812 | 1473 | 48898 | 13273 | **71626** |
| Less current portion | 398 |  |  | 548 |  | **946** |
| Long-term portion | $772 | $6812 | $1473 | $48350 | $13273 | $**70680** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **South Arturo** | **McCoy-Cove** | **Granite Creek** | **Lone Tree** | **Ruby Hill** | **Total** |
| Balance as at January 1, 2021 | $3427 | $4728 | $— | $— | $— | $8155 |
| Acquisitions |  |  | 2051 | 60475 | 23208 | 85734 |
| Change in estimate capitalized |  | 1842 | 318 |  | (80) | 2080 |
| Accretion expense | 44 | 114 | 25 | 117 | 51 | 351 |
| Reclamation expenditures |  |  |  |  |  |  |
| Disposal | (3471) |  |  |  |  | (3471) |
| Balance as at December 31, 2021 |  | 6684 | 2394 | 60592 | 23179 | 92849 |
| Less current portion |  |  |  |  |  |  |
| Long-term portion | $— | $6684 | $2394 | $60592 | $23179 | $92849 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**12.OTHER LIABILITIES**

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | December 31,<br>2021 |
| Warrant liability (i) | $**15945** | $15465 |
| Share-based payment liability (ii) | **983** |  |
| Orion - Conversion and change of controls rights (iii) | **27029** | 18534 |
| Sprott - Conversion and change of controls rights (iii) | **5299** | 3895 |
| Deferred consideration (iv) | **45805** | 42543 |
| Offtake liability (v) | **730** | 730 |
| Total other liabilities | **95791** | 81167 |
| Less current portion | **46181** | 15795 |
| Long-term portion | $**49610** | $65372 |

---

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![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Warrant liability</u>

In connection with the Plan of Arrangement with Equinox discussed in Note 1 (a) of these Financial Statements, the Company issued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.73 million Common Share Purchase Warrants ("warrants") which are exercisable into one fully paid and non-assessable common share of the Company at an exercise price of C$3.64 per share until October 7, 2022. The warrants included a four month hold period. The initial fair value<sup>3</sup> of the warrants recognized on inception was $2.9 million and at December 31, 2022 nil ($2.2 million at December 31, 2021). The warrants expired during the year ended December 31, 2022.

In connection with the Transaction, the Company assumed a warrant liability for 40% of 2.0 million Premier warrants that were outstanding with Orion Mine Finance on the date of the Transaction. On the exercise of the warrants, the Company will issue 800,000 shares of the Company in settlement. The liability has been recorded as a reduction in the equity issued on the spin-out of Premier USA to the Company. The initial fair value<sup>1</sup> of the replacement warrants recognized on inception was $0.5 million and at December 31, 2022 nil ($0.8 million at December 31, 2021). The warrants were exercised during the year ended December 31, 2022.

In connection with the Acquisition of Osgood as further described in Note 1(b) of these Financial Statements, the Company issued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 million warrants which are exercisable into one fully paid and non-assessable common share of the Company at an exercise price of C$3.64 per share until April 14, 2024. The warrants included a four month hold period. The initial fair value<sup>1</sup> of the warrants recognized on inception was $6.1 million and at December 31, 2022 $10.1 million ($8.9 million at December 31, 2021). Subsequent to the year ended December 31, 2022, Waterton exercised 350,000 warrants to purchase 350,000 common shares of the Company.

In connection with the financing as further described in Note 1(d) of these Financial Statements, the Company issued 5.5 million common share warrants exercisable at C$3.275 per share with an exercise period of 36 months or until December 13, 2024. The initial fair value of the warrants recognized on inception was $3.5 million and at December 31, 2022 $5.9 million ($3.5 million at December 31, 2021).

The warrants are considered derivatives because their exercise price is in C$ whereas the Company's functional currency is in USD. Accordingly, the Company recognizes the warrants as liabilities at fair value with changes in fair value recognized in profit or loss. For the year ended December 31, 2022, the Company recognized a loss on the revaluation of the liability of $1.0 million ($2.5 million loss for the year ended December 31, 2021) through the statement of income as further described in Note 18 of these Financial Statements.

The fair value of the warrants were calculated using the Black-Scholes option pricing model, or a Monte Carlo simulation model, if applicable taking into the account the four months hold restriction, and with the following weighted average assumptions:

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | December 31,<br>2021 |
| Risk free rate | **3.96% to 4.25%** | 0.18% to 0.69% |
| Warrant expected life | **15 to 24 months** | 4 to 30 months |
| Expected volatility | **56% to 60%** | 50% to 57% |
| Expected dividend | **0%** | 0% |
| Share price | **C$3.78** | C$3.11 |

---

As of December 31, 2022, there were 17,561,152 warrants outstanding (26,099,806 at December 31, 2021).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Share-based payment liability</u>

The Company recognized a share-based payment liability of $1.0 million at December 31, 2022 (nil at December 31, 2021) under the Company's restricted and deferred share unit plans as discussed in Note 13(e) of these Financial Statements. The current portion of the liability is $0.4 million at December 31, 2022 (nil at December 31, 2021) representing the cash settlement expected on the next vesting date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)<u>Conversion and change of controls right</u>

The financial liability represents the conversion and change of control rights included in the Orion and Sprott Convertible Loans as further described in Note 1(d), Note 10 and Note 24(d) of these Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)<u>Deferred consideration</u>

In connection with the acquisition of Ruby Hill the Company recorded a financial liability associated with the milestone payments subject to an early prepayment option, as further described in Note 1(b) of these Financial Statements. The Company recognizes the liability at fair value with changes in fair value recognized in profit or loss. The initial fair value of the liability recognized on inception was $41.9 million and $45.8 million at December 31, 2022 ($42.5 million at December 31, 2021). For the year ended December 31, 2022, the Company recognized a loss on the revaluation of the liability of $3.3 million through the statement of income as further described in Note 18 of these financial statements.

<sup>3</sup> The initial fair value of the warrants issued in April 2021, were calculated using Premier's share price volatility, and at December 31, 2022, and December 31, 2021, using i-80 Gold's share price volatility.

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

Subsequent to the year ended December 31, 2022, the Company exercised the early prepayment option and paid to Waterton total consideration of $27.0 million in satisfaction of the First Milestone Payment and Second Milestone Payment, as further described in Note 1(b) of these Financial Statements. Consideration paid to Waterton consisted of $11.0 million in cash and 5,515,313 common shares of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)<u>Offtake liability</u>

The financial liability represents the gold look back component of the offtake agreement discussed in Note 1(b) and Note 24 of these Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;**13.SHARE CAPITAL**

&nbsp;&nbsp;&nbsp;&nbsp;**(a)Authorized share capital**

At December 31, 2022, the authorized share capital consisted of an unlimited number of common shares without par value.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)Issued share capital**

On April 7, 2021, just prior to the completion of the Arrangement discussed in Note 1(a), the Company issued 137,624,461 common shares to Premier for the transfer of its investment in Premier USA to the Company for the carrying amount of its investment, C$189.2 million ($150.6 million) offset by C$5.5 million ($4.4 million) allocated to the equity settled employee benefits reserve for replacement options, C$1.1 million ($0.9 million) for the transfer of the South Arturo silver stream, C$0.7 million ($0.6 million) for transfer of the offtake agreement and C$0.7 million ($0.5 million) for replacement warrants issued pursuant to the arrangement.

On April 7, 2021, the Company issued 30,914,614 common shares at a price of C$2.60 per share for aggregate gross proceeds of approximately C$80.4 million ($60.8 million) for completing the private placement discussed in Note 1(a). This issuance also included the issuance of 7,728,654 share purchase warrants at an exercise price of C$3.64 with an expiration date of October 7, 2022. A cash commission was paid equal to 5.25% of the gross proceeds, other than (i) on proceeds from the sale of shares to Orion Mine Finance Group and any directors or officers of the Company or Premier for which the commission was reduced to 2.5% of the gross proceeds received and (ii) on proceeds from the sale of shares to Equinox, for which no commission was paid.

On April 14, 2021, the Company issued 13,036,846 common shares at a price of C$2.60 per common share for total gross proceeds of

$27.0 million (C$33.9 million) as part of the consideration on the acquisition of the Osgood Mining Company LLC property further discussed in Note 1(b).

On May 10, 2021, the Company issued 2,430,488 common shares at a price of C$2.50 per common share for total gross proceeds of

$5.0 million (C$6.1 million) as part of the consideration on the acquisition of the Christison properties, as discussed in Note 1(b).

On May 26 2021, the Company issued 5,479,536 common shares at a price of C$2.60 per common share for aggregate gross proceeds of $11.8 million (C$14.2 million) in satisfaction of an anti-dilution right of Equinox contemplated in the Agreement and immediately prior to the closing of the Christison Acquisition.

On October 14, 2021, in connection with the Asset Exchange, the Company issued 22,757,393 common shares at a price of C$2.62 to NGM for gross proceeds of $47.4 million.

On October 14, 2021, the Company issued 8,784,122 common shares at a price of C$2.62 per common share for gross proceeds of

$18.3 million in connection with a private placement.

On October 14, 2021, the Company entered into a Subscription Agreement with Orion whereby Orion agreed to purchase 7,500,000 common shares of the Company for $15.6 million.

On October 18, 2021, the Company issued 3,191,358 common shares to Waterton as partial consideration for the acquisition of Ruby Hill of $8.0 million.

On October 21, 2021, the Company issued 839,799 common shares to Orion as a fee $1.75 million for the transfer of the Offtake Agreement in connection with the Asset Exchange.

On December 9, 2021, the Company issued 4,800,000 common shares at a price of C$2.62 for gross proceeds of $10.0 million to Equinox in satisfaction of an anti-dilution right within the Agreement.

On January 31, 2022, in connection with the Arrangement and as further described in Note 12(i) of these Financial Statements, the Company issued 800,000 shares for share purchase warrants that were exercised in settlement of the warrant liability that was assumed for 40% of 2 million Premier warrants that were outstanding with Orion Mine Finance on the date of the Arrangement.

During the year ended December 31, 2022, the Company issued 1,047,200 shares for stock options exercised.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)Share option plan**

The Company has a share option plan (the "Plan") which is restricted to directors, officers, key employees and consultants of the Company. The number of common shares subject to options granted under the Plan (and under all other management options and employee stock purchase plans) is limited to 10% in the aggregate and 1% with respect to any one optionee of the number of issued and outstanding common shares of the Company at the date of the grant of the option. Options issued under the Plan may be exercised during a period determined by the Company's Board of Directors which cannot exceed ten years. Vesting periods may range from immediate to five years.

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**(d)Stock options**

The continuity of the Premier stock options that were outstanding and subsequently settled in connection with the spin-out, the replacement options that were issued by the Company, and the new options granted in accordance with the Share Option Plan are as follows:

---

| | | |
|:---|:---|:---|
| | **Options outstanding** <br>**#** | **Weighted average price** <br>**C$** |
| Outstanding at January 1, 2021 | 3244000 | 2.15 |
| Exercised | (62000) | 1.46 |
| Expired | (9000) | 3.18 |
| Outstanding at April 7, 2021 | 3173000 | 2.19 |
| Settled in connection with Premier USA spin-out | (3173000) | 2.19 |
| Replacement options issued (Note 1(a)) | 5722000 | 1.88 |
| Granted | 2975000 | 2.74 |
| Exercised | (1345200) | 1.75 |
| Expired | (662800) | 2.79 |
| Outstanding at December 31, 2021 | 6689000 | 2.21 |
| Granted | 2673179 | 2.65 |
| Exercised | (1047200) | 2.45 |
| Expired | (320106) | 2.71 |
| Forfeited | (116127) | 2.62 |
| **Outstanding at December 31, 2022** | **7878746** | **2.30** |

---

The weighted average share price at the date of exercise for the year ended December 31, 2022 was C$2.99 (C$2.56 for the year ended December 31, 2021).

At December 31, 2022, the following options were outstanding, and outstanding and exercisable:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Outstanding** | **Outstanding** | **Outstanding** | **Outstanding and Exercisable** | **Outstanding and Exercisable** | **Outstanding and Exercisable** |
| **Exercise price<br>CAD** | **Options

#** | &nbsp;&nbsp;&nbsp;&nbsp;**Weighted average exercise price**<br>**C$** | **Weighted average remaining life in years** | **Options

#** | **Weighted average exercise price**<br>**C$** | **Weighted average remaining life in years** |
| $1.18 - $2.44 | 2487800 | $1.38 | 1.99 | 2280800 | $1.29 | 1.74 |
| $2.45 - $2.64 | 2392246 | $2.60 | 3.90 | 1017774 | $2.58 | 3.63 |
| $2.65 - $3.67 | 2998700 | $2.81 | 3.14 | 2700164 | $2.76 | 3.02 |
|  | 7878746 | $2.30 | 3.01 | 5998738 | $2.17 | 2.63 |

---

Total vested stock options at December 31, 2022 were 5,998,738 with a weighted average exercise price of C$2.17 (5,086,500 at December 31, 2021 with a weighted average exercise price of C$2.12).

The Company applies the fair value method of accounting for all share-based compensation awards and accordingly, $1.9 million was recorded for options issued as compensation during the year ended December 31, 2022 ($2.1 million for the year ended December 31, 2021) per the table in (f) share-based payments below. The options had a weighted average grant date fair value of C$2.65 at December 31, 2022. As of December 31, 2022, there were 1,880,008 unvested stock options (1,602,500 at December 31, 2021).

Subsequent to the year ended December 31, 2022, 1,888,683 stock options were granted under the plan.

For purposes of the options granted, the fair value of each option was estimated on the date of grant using the Black-Scholes option pricing model, with the following assumptions:

---

| | | |
|:---|:---|:---|
| | **December 31,<br>2022** | December 31,<br>2021 |
| Risk-free interest rate | **1.55% to 4.20%** | 0.09% to 0.75% |
| Annualized volatility based on historic volatility | **51% to 62%** | 32% to 62% |
| Expected dividend | **Nil** | Nil |
| Forfeiture rate | **0% to 5.7%** | Nil |
| Expected option life | **3 years** | 4 years |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**(e)Restricted and Deferred Share Unit Plan**

The Company adopted the RSU plan to allow the Board of Directors to grant its employees non-transferable share units based on the value of the Company's share price at the date of grant. The awards have a graded vesting schedule over a three-year period. Under the RSU plan, the awards can be equity or cash settled immediately upon vesting.

The Company adopted the DSU plan to grant members of its Board of Directors non-transferable share units based on the value of the Company's share price at the date of grant. The awards have a graded vesting schedule over a three-year period. DSUs must be retained until the Director leaves the Board, at which time the awards will be equity or cash settled.

For the period ended December 31, 2021, the RSUs were settled in shares of i-80 Gold and Equinox Gold and the corresponding liability was reversed in conjunction with the closing of the Arrangement discussed in Note 1(a).

The following table summarizes the continuity of the RSUs and DSUs for the period ended December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **RSUs outstanding #** | **Weighted average RSU price C$** | **DSUs outstanding #** | **Weighted average DSU price C$** |
| Outstanding at January 1, 2021 | 413666 | $3.01 |  | $— |
| Settled in connection with Premier USA spin-out | (413666) | 1.38 |  |  |
| Outstanding at December 31, 2021 |  |  |  |  |
| Granted | 772170 | 2.62 | 175091 | 2.68 |
| Settled | (236301) | 2.25 |  |  |
| Forfeited | (70227) | 2.62 |  |  |
| **Outstanding at December 31, 2022** | **465642** | **$2.62** | **175091** | **$2.68** |

---

As the RSUs and DSUs are expected to be settled in cash, at December 31, 2022 a current liability of $0.4 million and a long-term liability of $0.6 million was outstanding and included in other liabilities (nil outstanding at December 31, 2021). For the year ended December 31, 2022, $1.3 million has been recorded as an expense and included in share-based payments ($1.0 million for the year ended December 31, 2021). The total fair value of the vested and unvested RSUs and DSUs at December 31, 2022 was C$1.7 million (nil at December 31, 2021).

For purposes of the vesting of the RSUs and DSUs, the fair value of the liability was estimated using the share price of the valuation date and an expected weighted average forfeiture rate of nil.

Subsequent to the year ended December 31, 2022, 731,544 RSUs were granted under the RSU plan and 110,919 DSUs were granted under the DSU plan.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)Share-based payments**

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Stock option valuation | $**1932** | $2116 |
| RSUs and DSUs | **1348** | 980 |
| Subtotal | $**3280** | $3096 |
| Reversal of RSU liability | **—** | (413) |
| Total | $**3280** | $2683 |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**14.BASIC AND DILUTED INCOME / (LOSS) PER SHARE**

Basic income / (loss) per share is calculated based on the weighted average number of common shares and common share equivalents outstanding during the year ended December 31, 2022, and 2021. Diluted income / (loss) per share is based on the assumption that stock options and warrants that have an exercise price less than the average market price of the Company's common shares during the period have been exercised on the later of the beginning of the year and the date granted. Net income / (loss) and basic weighted average shares outstanding are reconciled to diluted net income / (loss) and diluted weighted average shares outstanding, respectively, as follows:

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Income / (loss) from continuing operations | $**(79197)** | $76620 |
| Income from discontinued operations | **—** | 11603 |
| Net income / (loss) for the year | **(79197)** | 88223 |
| Basic weighted average shares outstanding | **240100023** | 148288884 |
| Dilution adjustment for stock options | **—** | 4752714 |
| Diluted weighted average shares outstanding | **240100023** | 153041598 |
| Basic income / (loss) per share from continuing operations | **(0.33)** | 0.52 |
| Basic income per share from discontinued operations | **—** | 0.08 |
| Basic income / (loss) per share | $**(0.33)** | $0.60 |
| Diluted income / (loss) per share from continuing operations | **(0.33)** | 0.50 |
| Diluted income per share from discontinued operations | **—** | 0.08 |
| Diluted income / (loss) per share | $**(0.33)** | $0.58 |

---

7,878,746 stock options (Note 13(d)) and 17,561,152 warrants (Note 12(i)) were excluded from the computation of diluted weighted average shares outstanding for the year ended December 31, 2022 as their effect would be anti-dilutive.

&nbsp;&nbsp;&nbsp;&nbsp;**15.SUPPLEMENTAL CASH FLOW INFORMATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The following table summarizes the increase and (decrease) in non-cash working capital balances:

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Receivables | $**1223** | $(303) |
| Receivable from related parties | **—** | (4) |
| Prepaids and deposits | **(799)** | (4013) |
| Inventory | **9220** | (4575) |
| Accounts payable and accrued liabilities | **(2484)** | 11767 |
| Increase in working capital | $**7160** | $2872 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The following table summarizes non-cash items included in other income / (expense):

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Loss on warrants | $**(1040)** | $(2515) |
| Loss on fair value measurement of convertible loans derivative | **(9899)** | (6097) |
| Loss on deferred consideration | **(3262)** | (649) |
| Gain / (loss) on investments | **(295)** | 696 |
| Gain on sales from Gold Prepay Agreement | **1596** |  |
| Gain on fair value measurement of Gold Prepay derivative | **2916** |  |
| Gain on fair value measurement of Silver Purchase derivative | **1898** |  |
| Gain on asset exchange | **—** | 135531 |
| Other | **20** | (645) |
| Total non-cash items included in other income / (expense) | $**(8066)** | $126321 |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**16.EXPLORATION, EVALUATION AND PRE-DEVELOPMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The following table summarizes the Company's exploration, evaluation and pre-development expenditures by property:

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| McCoy-Cove, Nevada | $**4196** | $1137 |
| Granite Creek, Nevada | **13578** | 8423 |
| Ruby Hill, Nevada | **19552** | 825 |
| Buffalo Mountain, Nevada | **1483** |  |
| Other | **—** | 92 |
| Total exploration, evaluation and pre-development | $**38809** | $10477 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The following table summarizes the Company's exploration, evaluation and pre-development expenditures by activity:

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Drilling | $**26117** | $5812 |
| Assays | **3998** | 282 |
| Salaries and benefits | **2106** | 890 |
| Field support | **2861** | 1670 |
| Operating supplies | **1313** | 210 |
| Studies and permits | **768** | 320 |
| Consulting and professional fees | **760** | 735 |
| Claim Filing and Maintenance Fees | **411** | 360 |
| Depreciation & amortization | **475** | 198 |
| Total exploration, evaluation and pre-development | $**38809** | $10477 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**17.GENERAL AND ADMINISTRATIVE**

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Corporate administration | $**6225** | $2740 |
| Salaries and benefits | **7537** | 4451 |
| Professional fees | **3328** | 3265 |
| Total general and administrative | $**17090** | $10456 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**18.OTHER INCOME / (EXPENSE)**

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Loss on warrants | $**(1040)** | $(2515) |
| Loss on fair value measurement of convertible loans derivative | **(9899)** | (6097) |
| Loss on deferred consideration | **(3262)** | (649) |
| Loss on foreign exchange | **(404)** | (122) |
| Gain / (loss) on investments | **(295)** | 696 |
| Gain on sales from Gold Prepay Agreement | **1596** |  |
| Gain on fair value measurement of Gold Prepay derivative | **2916** |  |
| Gain on fair value measurement of Silver Purchase derivative | **1898** |  |
| Gain on asset exchange | **—** | 135531 |
| Other | **(3193)** | 98 |
| Total other income / (expense) | $**(11683)** | $126942 |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**19.FINANCE EXPENSE**

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Interest accretion on convertible loans | $**7695** | $262 |
| Interest accretion on Gold Prepay Agreement | **6720** |  |
| Interest accretion on Silver Purchase Agreement | **2692** |  |
| Amortization of finance costs | **353** |  |
| Environmental rehabilitation accretion | **3001** | 307 |
| Interest paid | **27** | 76 |
| Total finance expense | $**20488** | $645 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**20.SEGMENTED INFORMATION**

Results of the operating segments are reviewed by the Company's chief operating decision makers ("CODM") to make decisions about resources to be allocated to the segments and to assess their performance. Each CODM is a member of the senior management team who rely on management positioned in each operating segment of the Company.

**Operating mine property, development and exploration projects**

The Company's operating segments are reported by operating mine properties and exploration and development projects. The results from operations for these reportable segments are summarized in the following tables:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Continuing operations** | **Continuing operations** | **Continuing operations** | | | |
| **Year ended December 31, 2022** | **Nevada Production<sup>4</sup>** | **Exploration and Development<sup>5</sup>** | **Corporate and other** | **Total** | **Discontinued operations** | **Total** |
| Revenue | $36958 | $— | $— | $**36958** | $— | $**36958** |
| Cost of sales | (28861) |  |  | **(28861)** |  | **(28861)** |
| Depletion, depreciation and amortization | (4528) |  |  | **(4528)** |  | **(4528)** |
| Exploration, evaluation and pre-development | (21039) | (17801) | 31 | **(38809)** |  | **(38809)** |
| Overhead costs | (2899) | (308) | (20412) | **(23619)** |  | **(23619)** |
| Other income / (expense) | (6611) | 11 | (5083) | **(11683)** |  | **(11683)** |
| Finance expense | (2722) | (287) | (17479) | **(20488)** |  | **(20488)** |
| Income / (loss) before income taxes | (29702) | (18385) | (42943) | **(91030)** |  | **(91030)** |
| Deferred tax recovery |  |  | 11833 | **11833** |  | **11833** |
| **Income / (loss) for the period** | $**(29702)** | $**(18385)** | $**(31110)** | $**(79197)** | $**—** | $**(79197)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Continuing operations** | **Continuing operations** | **Continuing operations** | | | |
| Year ended December 31, 2021 | Nevada Production<sup>1</sup> | Exploration and Development<sup>2</sup> | Corporate and other | Total | Discontinued operations | Total |
| Revenue | $— | $— | $— | $— | $31991 | $31991 |
| Cost of sales |  |  |  |  | (17207) | (17207) |
| Depletion, depreciation and amortization |  |  |  |  | (1691) | (1691) |
| Exploration, evaluation and pre-development | (829) | (9613) | (35) | (10477) | (1034) | (11511) |
| Overhead costs | (29) | (363) | (17578) | (17970) | (175) | (18145) |
| Other income / (expense) | 134887 | 13 | (7958) | 126942 | 16 | 126958 |
| Related party interest expense |  |  | (1177) | (1177) |  | (1177) |
| Finance expense | (168) | (139) | (338) | (645) | (44) | (689) |
| Income / (loss) before income taxes | 133861 | (10102) | (27086) | 96673 | 11856 | 108529 |
| Current tax expense |  |  | (200) | (200) | (253) | (453) |
| Deferred tax expense | (27704) |  | 7851 | (19853) |  | (19853) |
| **Income / (loss) for the period** | $**106157** | $**(10102)** | $**(19435)** | $**76620** | $**11603** | $**88223** |

---

<sup>4</sup> Includes Ruby Hill and Lone Tree

<sup>5</sup> Includes Granite Creek and McCoy-Cove

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Continuing operations** | **Continuing operations** | **Continuing operations** | | | |
| **As at December 31, 2022** | **Nevada Production<sup>6</sup>** | **Exploration and Development<sup>7</sup>** | **Corporate and other** | **Total** | **Discontinued operations** | **Total** |
| Capital expenditures | $11151 | $44441 | $522 | $**56114** | $— | $**56114** |
| Property, plant and equipment | 346176 | 178920 | 4165 | **529261** |  | **529261** |
| Total assets | 394584 | 186298 | 61077 | **641959** |  | **641959** |
| Total liabilities | $142432 | $14524 | $151590 | $**308547** | $— | $**308547** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Continuing operations** | **Continuing operations** | **Continuing operations** | | | |
| As at December 31, 2021 | Nevada Production<sup>1</sup> | Exploration and Development<sup>2</sup> | Corporate and other | Total | Discontinued operations | Total |
| Capital expenditures | $368503 | $68856 | $932 | $438291 | $2366 | $**440657** |
| Property, plant and equipment | 363715 | 138056 | 878 | 502649 |  | **502649** |
| Total assets | 416003 | 140680 | 99666 | 656349 |  | **656349** |
| Total liabilities | $159311 | $10971 | $79089 | $249371 | $— | $**249371** |

---

**Revenue by customer**

The following table represents sales to individual customers representing 100% of the Company's gold and silver revenue:

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Customer 1 | $**22280** | $— |
| Customer 2 | **14678** |  |
| Customer 3 | **—** | 31991 |
| **Total revenue from major customers** | $**36958** | $31991 |

---

The Company is not economically dependent on a limited number of customers for the sale of its product because gold and other metals can be sold through numerous commodity market traders worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;**21.INCOME TAXES**

&nbsp;&nbsp;&nbsp;&nbsp;(a)The major components of income tax expense / (recovery) are as follows:

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Current income tax expense | $**—** | $200 |
| Deferred income tax expense / (recovery) | **(11833)** | 19853 |
| **Income tax expense / (recovery)** | $**(11833)** | $20053 |

---

<sup>6</sup> Includes Ruby Hill and Lone Tree

<sup>7</sup> Includes Granite Creek and McCoy-Cove

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;(b)The income tax expense for the year can be reconciled to the accounting profit as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31,** | **December 31,** | December 31, | December 31, |
| | **2022** | **2022** | 2021 | 2021 |
| Income / (loss) before income tax | $**(91030)** |  | $108276 |  |
| Canadian federal and provincial income tax rates | **(24578)** | **27%** | 29235 | 27% |
| Increase / (decrease) due to: |  |  |  |  |
| Permanent differences | **873** | **(1)** | 518 |  |
| Impact of foreign tax rates | **3494** | **(4)** | (7575) | (7) |
| Other foreign exchange differences | **(3028)** | **3** | 959 | 1 |
| Prior year's adjustments relating to tax provision and tax returns | **727** | **(1)** |  |  |
| Change in unrecognized deferred taxes | **10829** | **(12)** | (3214) | (3) |
| Other | **(150)** | **—** | 130 |  |
| **Income tax expense / (recovery)** | $**(11833)** | **13%** | $20053 | 19% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(c)Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset.

Movement in net deferred tax liabilities:

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | December 31, 2021 |
| Balance at the beginning of year | $**(19853)** | $— |
| Recognized in profit / (loss) | **11833** | (19853) |
| **Balance at the end of the year** | $**(8020)** | $(19853) |

---

The Company recognizes deferred taxes by taking into account the effects of local enacted tax legislation. Deferred tax assets are fully recognized when the Company concludes that sufficient positive evidence exists to demonstrate that it is probable that a deferred tax asset will be realized. The main factors that the Company considers are:

–Historic and expected future taxable income;

–Any tax planning that can be implemented to realize the tax assets; and

–The nature, amount and timing and reversal of taxable temporary differences.

Future income is impacted by changes in market gold and silver prices as well as forecasted future costs and expenses to produce gold and silver reserves. In addition the quantities of proven and probable gold and silver reserves, market interest rates and foreign currency exchange rates also impact future levels of taxable income. Any change in any of these factors will result in an adjustment to the recognition of deferred tax assets to reflect the Company's latest assessment of the amount of deferred tax assets that is probable will be realized.

The following is the analysis of deferred tax assets / (liabilities) presented in the consolidated statements of financial position:

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | December 31, 2021 |
| **Deferred income tax assets** |  |  |
| Unused losses | $**26054** | $8117 |
| Financing costs | **422** | 562 |
| Asset retirement obligation | **17269** | 14188 |
| Other | **29109** | 4131 |
| Gross deferred tax asset | $**72854** | $26998 |
| Offset by deferred income tax liabilities | **(58395)** | (23316) |
| Net deferred tax asset | $**14459** | $3682 |
| **Deferred income tax liabilities** |  |  |
| Inventory | **(983)** | (350) |
| Capital assets | **(43559)** | (39492) |
| Other | **(21873)** | (3327) |
| Gross deferred tax liabilities | $**(66415)** | $(43169) |
| Deferred income tax liabilities used to offset deferred tax asset | **58395** | 23316 |
| Net deferred income tax assets / (liabilities) | $**(8020)** | $(19853) |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;(d)Deferred tax assets not recognized

The deductible temporary differences and unused tax losses in respect of which a deferred tax asset has not been recognized in the consolidated statements of financial position are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2022** | **Year ended December 31, 2022** | Year ended December 31, 2021 | Year ended December 31, 2021 |
| | **Canada** | **United States** | Canada | United States |
| Deferred tax assets not recognized |  |  |  |  |
| Loss carry forwards | $**25953** | $**—** | $5078 | $— |
| Conversion feature | **—** | **—** | 8493 |  |
| Financing costs | **—** | **—** | 2082 |  |
| Other | **20710** | **—** | 82 |  |
| Total deferred tax assets not recognized | $**46663** | $**—** | $15735 | $— |
| Non capital loss carry-forwards | $**25953** | $**—** | $5078 | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;**22.RELATED PARTY TRANSACTIONS**

Related parties include key management personnel and entities which have control or significant influence as described in Note 2(b) of these Financial Statements. Related party transactions included in these Financial Statements are with Premier, the former parent company and with Equinox Gold.

The following are related party transactions, recorded at the exchange amount as agreed to by the parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Company recognized revenue of $32.0 million for the year ended December 31, 2021 from the sale of gold and silver under the transfer pricing agreement with Premier. The transfer pricing agreement with Premier was terminated on closing of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Included in related party interest expense is interest accrued on an intercompany loan payable to Premier in the amount of $1.2 million for the year ended December 31, 2021. The intercompany note was settled on closing of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Included in finance expense is interest paid to Equinox Gold of $0.06 million for the year ended December 31, 2021 for the bridge loan further described in Note 10(vi) of these Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Included in the statement of cash flows for the year ended December 31, 2021, is the proceeds from Equinox Gold and the subsequent repayment to Equinox Gold for the $20.75 million bridge loan further described in Note 1(a) of these Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Included in operating expenses is share-based payments of $0.6 million for the year ended December 31, 2021. The share-based payments are for allocation of expenses from Premier. The corresponding share-based payment liability previously recorded in Premier USA, was settled on closing of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Included in operating expenses is transition services costs of $0.1 million to Equinox Gold for the year ended December 31, 2022 ($0.2 million for the the year ended December 31, 2021). The transition services costs are for general and administrative services provided by Equinox Gold to the Company's head office in Reno, Nevada. The transition services agreement was terminated March 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)In April 2021, the Company modified a portion of its intercompany note payable to Premier to change the repayment currency from CAD to USD. This modification resulted in the extinguishment of the original intercompany note and recognition of a new intercompany note, with the difference of $8.8 million recorded directly into surplus / (deficit).

**Remuneration of key management personnel**

Key management personnel include the executive leadership team and members of the Board of Directors. Compensation for key management personnel was as follows:

*Compensation of executive leadership team*

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Salary, wages and benefits | $**3410** | $1597 |
| Share-based payments | **1772** | 1198 |
| Total compensation of executive leadership team | $**5182** | $2795 |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

*Compensation of directors*

---

| | | |
|:---|:---|:---|
| | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | 2021 |
| Fees earned and other remuneration | $**163** | $242 |
| Share-based payments | **570** | 423 |
| Total compensation of directors | $**733** | $665 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**23.COMMITMENTS**

**Surety bonds**

At December 31, 2022, the Company has outstanding surety bonds in the amount of $126.1 million in favor of either the United States Department of the Interior, Bureau of Land Management ("BLM"), or the State of Nevada, Department of Conservation & Natural Resources as financial support for environmental reclamation and exploration permitting. This includes surety bonds for the Lone Tree project and the Ruby Hill property in the amounts of $87.0 million and $22.8 million, respectively. The surety bonds are secured by a $32.9 million deposit and are subject to fees competitively determined in the marketplace. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As specific requirements are met, the BLM and State of Nevada as beneficiary of the instruments, will return the instruments to the issuing entity. As these instruments are associated with operating sites with long-lived assets, they will remain outstanding until closure.

&nbsp;&nbsp;&nbsp;&nbsp;**24.FINANCIAL INSTRUMENTS**

The Company's operations include the acquisition and exploration of mineral properties in the State of Nevada. The Company examines the various financial risks to which it is exposed and assesses the impact and likelihood of occurrence. These risks may include credit risk, liquidity risk, currency risk, interest rate risk and other risks. Where material, these risks are reviewed and monitored by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)Credit risk**

Counterparty credit risk is the risk that the financial benefits of contracts with a specific counterparty will be lost if a counterparty defaults on its obligations under the contract. This includes any cash amounts owed to the Company by those counterparties, less any amounts owed to the counterparty by the Company where a legal right of offset exists and also includes the fair values of contracts with individual counterparties which are recorded in the Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Trade credit risk

The Company closely monitors its financial assets and does not have any significant concentration of trade credit risk. The Company sells its products exclusively to large international financial institutions and other organizations with strong credit ratings. The historical level of customer defaults is negligible and, as a result, the credit risk associated with trade receivables is considered to be negligible. The trade receivable balance outstanding at December 31, 2022 and at December 31, 2021 was nil.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Cash

In order to manage credit and liquidity risk the Company invests only in highly rated investment grade instruments that have maturities of 90 days or less and which are liquid after 30 days or less into a known amount of cash. Limits are also established based on the type of investment, the counterparty and the credit rating. The credit risk on cash and cash equivalents is therefore negligible.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)Liquidity risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure.

The following table summarizes the Company's contractual maturities and the timing of cash flows as at December 31, 2022. The amounts presented are based on the undiscounted contractual cash flows and may not agree with the carrying amounts on the Financial Statements.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **With 1 year** | **1-2 years** | **2-3 years** | &nbsp;&nbsp;&nbsp;&nbsp;**Thereafter** | &nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | $17233 | $— | $— | $— | $**17233** |
| &nbsp;&nbsp;Convertible loans |  |  | 60000 |  | **60000** |
| &nbsp;&nbsp;Gold Prepay Agreement | 17043 | 17469 | 13359 |  | **47871** |
| &nbsp;&nbsp;Silver Purchase Agreement | 14604 | 8679 | 2191 |  | **25474** |
| &nbsp;&nbsp;Deferred consideration | 47000 |  |  |  | **47000** |
| &nbsp;&nbsp;Reclamation and closure obligations | 923 | 857 | 810 | 94565 | **97155** |
| **Total** | $**96803** | $**27005** | $**76360** | $**94565** | $**294733** |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**(c)Market risk**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As the Company holds excess cash in interest bearing bank accounts rather than investments, the interest rate risk is minimal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognized assets and liabilities are denominated in a currency that is not the Company's functional currency. The Company's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)Fair value**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Definitions

IFRS 13 establishes a fair value hierarchy that prioritizes the input to valuation techniques used to measure fair value as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Valuation techniques used to determine fair values

The Company calculates fair values based on the following methods of valuation and assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*a.Financial assets*

Financial assets other than the Company's investment described below are carried at amortized cost. The fair value of cash and cash equivalents and receivables approximate their carrying value due to their short-term nature.

The Company's investment as further described in Note 6 of these Financial Statements was classified within level 2 of the fair value hierarchy and is fair valued using the common share price from the most recent subscription agreement at December 31, 2021, however during the year ended December 31, 2022, the investment listed on the TSX and therefore a quoted market price for this investment is available and is now classified within level 1 of the fair value hierarchy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*b.Financial liabilities*

Financial liabilities not classified as fair value through profit or loss ("FVTPL") are carried at amortized cost. Accounts payable and accrued liabilities approximate their carrying value due to their short term nature.

The fair value of the loan payable to Premier approximates the carrying value as the interest rates are comparable to current market rates.

The share-based payment and warrant liabilities are classified within level 2 of the fair value hierarchy and are fair valued using a valuation model that incorporates such factors as the Company's share price volatility, risk free rates and expiry dates including managements assumptions on forfeiture rates.

The Stream Agreement liability was classified within level 3 of the fair value hierarchy and was fair valued using the net present value of expected future cash flows based on management assumptions on silver deliveries under the stream and a discount rate that includes the risk premium that market participants require. This liability was extinguished as of December 31, 2021.

Deferred consideration related to Ruby Hill was recognized at fair value on acquisition and at December 31, 2022. This liability is classified within level 3 of the fair value hierarchy as it involves management's best estimate of whether or not the key activities as described in Note 1(b) of these Financial Statements required for each milestone payment will be achieved. Management has assumed that all milestones will be achieved and the early repayment option will be taken so the fair value of the deferred consideration is the $47 million discounted at 7.5%.

The Finance Package is classified within level 3 of the fair value hierarchy and is fair valued using credit spread calculated at inception and simulating out the expected movement in gold, silver and the Company's share price while considering key assumptions like the discount rate that includes the risk premium that market participants require, the volatility in the Company's share price and the discount for lack of marketability.

The Convertible Loans contain conversion and change of control rights that are separately measured at FVTPL each reporting period (level 3). The valuation of these options are dependent on the changes in the prices of the underlying assets and the probability that a change of control event would be expected to occur on December 13, 2023. The forced conversion rights were measured at fair value on inception but do not get revalued subsequently.

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

The Gold Prepay Agreement is recognized as a financial liability at amortized cost and it contains an embedded derivative in relation to the embedded gold price within the agreement that is measured at FVTPL each reporting period (level 3). The change in fair value is dependent on the movement in gold prices and the change in the risk free borrowing rate.

The Silver Purchase Agreement is recognized as a financial liability at amortized cost and it contains two embedded derivatives; one in relation to the embedded silver price within the agreement and the other in relation to the gold substitution option whereby i-80 Gold can choose to deliver gold instead of silver at a ratio of 75:1, both are measured at FVTPL each reporting period (level 3). On initial recognition and at December 31, 2022, the gold substitution option did not have any value. The change in fair value of the embedded derivative related to the silver price is dependent on the movement in silver prices and the change in the risk free borrowing rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Fair value measurements using significant unobservable inputs (level 3)

The following table presents the changes in level 3 items for the periods ended December 31, 2022 and December 31, 2021:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | Orion | Orion | Orion | Sprott | Trident |
| | Stream Agreement | Deferred consideration | Conversion and change of control rights | Silver Purchase Agreement - silver price derivative | Gold Prepay Agreement - gold price derivative | Conversion and change of control rights | A&R Offtake gold lookback option |
| Balance as at January 1, 2021 | $— | $— | $— | $— | $— | $— | $— |
| Initial recognition | (853) | (41895) | (13599) |  |  | (2733) | (577) |
| Principal repayment | 11 |  |  |  |  |  |  |
| Disposals | 897 |  |  |  |  |  |  |
| Fair value adjustments | (55) | (648) | (4935) |  |  | (1162) | (153) |
| Balance as at December 31, 2021 | $— | $(42543) | $(18534) | $— | $— | $(3895) | $(730) |
| Fair value adjustments |  | (3262) | (8495) | 1898 | 2916 | (1404) |  |
| **Balance as at December 31, 2022** | $**—** | $**(45805)** | $**(27029)** | $**1898** | $**2916** | $**(5299)** | $**(730)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Valuation inputs and relationships to fair value

The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Balance as at December 31, 2022** | **Unobservable input** | **Fair Value** | **Change in Fair Value** | **Change in Fair Value** |
| Assumption: |  |  | -10% | 10% |
| Silver Purchase Agreement - silver price derivative | Change in forecast silver price | 1898 | 4638 | (4638) |
| Gold Prepay Agreement - gold price derivative | Change in forecast gold price | 2916 | 4208 | (4208) |

---

The valuation of the Convertible Loans and related embedded derivatives were dependent on the changes in the prices of the underlying assets and the probability that a change of control event would be expected to occur on December 13, 2023.

The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Balance as at December 31, 2022** | **Unobservable input** | **Fair Value** | **Change in Fair Value** | **Change in Fair Value** |
| Assumption: |  | 25% | 15% | 35% |
| Orion - Conversion Option and Change of Control Option | Change of control probability | (27029) | 327 | 327 |
| Sprott - Conversion Option and Change of Control Option | Change of control probability | (5299) | (62) | 62 |

---

------

![iaux-20221231_g1.jpg](iaux-20221231_g1.jpg)

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

(Stated in thousands of United States Dollars)

&nbsp;&nbsp;&nbsp;&nbsp;**25.MANAGEMENT OF CAPITAL**

The Company manages its share capital and equity settled employee benefits reserve as capital, the balance of which is $369.5 million at December 31, 2022 ($363.9 million at December 31, 2021). The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going-concern in order to pursue the exploration and development of its mineral properties and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, acquire or dispose of assets or acquire new debt.

In order to maximize ongoing exploration and development efforts, the Company does not pay out dividends. The Company's investment policy is to invest its short-term excess cash in highly liquid short-term interest-bearing investments with short-term maturities, selected with regard to the expected timing of expenditures from continuing operations.

To effectively manage its capital requirements, the Company has in place a planning and budgeting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. In connection with the financing described in Note 26 of these Financial Statements, the Company expects it will have sufficient capital to carry out its development, exploration and evaluation plans through 2023.

&nbsp;&nbsp;&nbsp;&nbsp;**26.SUBSEQUENT EVENTS**

***Private Placement Offering***

On February 22, 2023, the Company closed a private placement offering of $65 million principal amount of secured convertible debentures (the "Convertible Debentures") of the Company. The Convertible Debentures will bear interest at a fixed rate of 8.00% per annum and will mature on February 22, 2027, being the date that is four years from the offering closing date.

The Convertible Debentures will be the senior unsecured obligation of the Company and will be secured on a limited recourse basis by Premier USA, the Company's wholly-owned subsidiary, with recourse limited to a pledge of all present and future limited liability company units issued by its wholly-owned subsidiary, Au-Reka. The Convertible Debentures will be guaranteed on a full recourse basis by Au-Reka which is secured by a first ranking security over all of Au-Reka's present and future real and personal property (including the McCoy-Cove project).

The Convertible Debentures are not redeemable prior to the Maturity Date; provided, however, that, if the Company has not executed the security documents relating to the security being provided in connection with the offering within 90 days from the closing date, the Company shall be obligated to repurchase the Convertible Debentures, by the date that is 120 days from the closing date, at a price equal to 100% of the principal amount of the Convertible Debentures then outstanding plus any accrued and unpaid interest thereon up to and including the date of redemption.

Certain directors and/or officers of the Company subscribed for $0.23 million in principal amount of Convertible Debentures under the offering.

***Agreement to Acquire Paycore Minerals***

On February 27, 2023, the Company, and Paycore announced that the companies entered into a definitive agreement whereby i-80 will acquire all of the outstanding common shares of Paycore (the "Paycore Shares") pursuant to a statutory plan of arrangement.

Paycore owns the FAD property that is host to the FAD deposit located immediately south of, and adjoining, the Company's Ruby Hill Property located in Eureka County, Nevada. The transaction will consolidate the northern portion of the Eureka District, increasing the Company's land package at Ruby Hill

Pursuant to the transaction, Paycore shareholders will receive 0.68 of an i-80 Gold common share for each Paycore Share held (the "Exchange Ratio"), representing a 36% premium for Paycore shareholders based on the 20-day volume-weighted average price for both Paycore and i-80 Gold for the period ended on February 24, 2023 and a 26% premium based on the closing prices of both companies on February 24, 2023. Based on the Exchange Ratio, upon completion of the transaction, existing i-80 Gold shareholders will own approximately 90% and former Paycore shareholders will own approximately 10% of the combined company, on a fully diluted in-the-money basis.

***Milestone payments***

In January 2023, the Company exercised the early prepayment option and paid to Waterton total consideration of $27.0 million in satisfaction of the First Milestone Payment and Second Milestone Payment, as further described in Note 1(b) of these Financial Statements. Consideration paid to Waterton consisted of $11.0 million in cash and 5,515,313 common shares of the Company.

## Exhibit 99.2

![image_0a.jpg](image_0a.jpg)

Management's Discussion and Analysis of Operations and Financial Condition

For the three months and year ended December 31, 2022

------

![image_1a.jpg](image_1a.jpg)

**Table of Contents**

---

| | |
|:---|:---|
| &nbsp;&nbsp;**[Highlights](#i4390d04750b240d895c97f04024244ab_10)** | **[3](#i4390d04750b240d895c97f04024244ab_10)** |
| &nbsp;&nbsp;**Fourth Quarter and Year End**  | **[3](#i4390d04750b240d895c97f04024244ab_10)** |
| **[OVERVIEW](#i4390d04750b240d895c97f04024244ab_16)** | **[4](#i4390d04750b240d895c97f04024244ab_16)** |
| &nbsp;&nbsp;**[Company Overview](#i4390d04750b240d895c97f04024244ab_19)** | **[4](#i4390d04750b240d895c97f04024244ab_19)** |
| &nbsp;&nbsp;**[Financing Agreements](#i4390d04750b240d895c97f04024244ab_22)** | **[4](#i4390d04750b240d895c97f04024244ab_22)** |
| &nbsp;&nbsp;**[Strategic Overview](#i4390d04750b240d895c97f04024244ab_698)** | **[6](#i4390d04750b240d895c97f04024244ab_698)** |
| &nbsp;&nbsp;**[Granite Creek Acquisition (Osgood Mining Company and Christison)](#i4390d04750b240d895c97f04024244ab_727)** | **[6](#i4390d04750b240d895c97f04024244ab_727)** |
| &nbsp;&nbsp;**[Lone Tree and Ruby Hill Acquisition](#i4390d04750b240d895c97f04024244ab_744)** | **[7](#i4390d04750b240d895c97f04024244ab_744)** |
| &nbsp;&nbsp;**[Plan of Arrangement with Equinox Gold](#i4390d04750b240d895c97f04024244ab_681)** | **[10](#i4390d04750b240d895c97f04024244ab_681)** |
| &nbsp;&nbsp;**[Functional and Presentation Currency](#i4390d04750b240d895c97f04024244ab_31)** | **[10](#i4390d04750b240d895c97f04024244ab_31)** |
| **[RESULTS OF OPERATIONS](#i4390d04750b240d895c97f04024244ab_37)** | **[11](#i4390d04750b240d895c97f04024244ab_37)** |
| &nbsp;&nbsp;**[Three](#i4390d04750b240d895c97f04024244ab_40)[and](#i4390d04750b240d895c97f04024244ab_40)[Twelve](#i4390d04750b240d895c97f04024244ab_40)[Month Results](#i4390d04750b240d895c97f04024244ab_40)** | **[11](#i4390d04750b240d895c97f04024244ab_40)** |
| &nbsp;&nbsp;**[Selected Quarterly Information](#i4390d04750b240d895c97f04024244ab_43)** | **[13](#i4390d04750b240d895c97f04024244ab_43)** |
| &nbsp;&nbsp;**[Operational Highlights](#i4390d04750b240d895c97f04024244ab_665)** | **[14](#i4390d04750b240d895c97f04024244ab_665)** |
| &nbsp;&nbsp;**[Exploration, Evaluation and Pre-development,](#i4390d04750b240d895c97f04024244ab_49)[McCoy-Cove,](#i4390d04750b240d895c97f04024244ab_49)[Granite Creek](#i4390d04750b240d895c97f04024244ab_49)[,](#i4390d04750b240d895c97f04024244ab_49)[Buffalo Mountain](#i4390d04750b240d895c97f04024244ab_49)[and Ruby Hill](#i4390d04750b240d895c97f04024244ab_49)** | **[15](#i4390d04750b240d895c97f04024244ab_49)** |
| **[FINANCIAL POSITION](#i4390d04750b240d895c97f04024244ab_52)** | **[18](#i4390d04750b240d895c97f04024244ab_52)** |
| &nbsp;&nbsp;**[Balance Sheet Review](#i4390d04750b240d895c97f04024244ab_55)** | **[18](#i4390d04750b240d895c97f04024244ab_55)** |
| &nbsp;&nbsp;**[Liquidity and Capital Resources](#i4390d04750b240d895c97f04024244ab_58)** | **[19](#i4390d04750b240d895c97f04024244ab_58)** |
| **[RELATED PARTY TRANSACTIONS](#i4390d04750b240d895c97f04024244ab_61)** | **[21](#i4390d04750b240d895c97f04024244ab_61)** |
| **[COMMITMENTS AND CONTINGENCIES](#i4390d04750b240d895c97f04024244ab_67)** | **[22](#i4390d04750b240d895c97f04024244ab_67)** |
| &nbsp;&nbsp;**[Environmental Rehabilitation Provision](#i4390d04750b240d895c97f04024244ab_70)** | **[22](#i4390d04750b240d895c97f04024244ab_70)** |
| &nbsp;&nbsp;**[Surety Bonds](#i4390d04750b240d895c97f04024244ab_73)** | **[23](#i4390d04750b240d895c97f04024244ab_73)** |
| &nbsp;&nbsp;**[Option Agreements](#i4390d04750b240d895c97f04024244ab_76)** | **[23](#i4390d04750b240d895c97f04024244ab_76)** |
| &nbsp;&nbsp;**[Changes to Other Agreements](#i4390d04750b240d895c97f04024244ab_79)** | **[23](#i4390d04750b240d895c97f04024244ab_79)** |
| &nbsp;&nbsp;**[Off Balance Sheet Arrangements](#i4390d04750b240d895c97f04024244ab_82)** | **[23](#i4390d04750b240d895c97f04024244ab_82)** |
| **[CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES, POLICIES AND CHANGES](#i4390d04750b240d895c97f04024244ab_88)** | **[24](#i4390d04750b240d895c97f04024244ab_88)** |
| &nbsp;&nbsp;**[Significant Accounting Judgements and Estimates](#i4390d04750b240d895c97f04024244ab_91)** | **[24](#i4390d04750b240d895c97f04024244ab_91)** |
| **[NON-IFRS FINANCIAL PERFORMANCE MEASURES](#i4390d04750b240d895c97f04024244ab_94)** | **[26](#i4390d04750b240d895c97f04024244ab_94)** |
| **[RISKS AND RISK MANAGEMENT](#i4390d04750b240d895c97f04024244ab_97)** | **[30](#i4390d04750b240d895c97f04024244ab_97)** |
| &nbsp;&nbsp;**[Financial Instruments and Related Risks](#i4390d04750b240d895c97f04024244ab_100)** | **[30](#i4390d04750b240d895c97f04024244ab_100)** |
| &nbsp;&nbsp;**[Management of Capital Risk](#i4390d04750b240d895c97f04024244ab_103)** | **[32](#i4390d04750b240d895c97f04024244ab_103)** |
| &nbsp;&nbsp;**[Risks and Uncertainties](#i4390d04750b240d895c97f04024244ab_106)** | **[33](#i4390d04750b240d895c97f04024244ab_106)** |
| **[MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING](#i4390d04750b240d895c97f04024244ab_109)** | **[38](#i4390d04750b240d895c97f04024244ab_109)** |
| **[Disclosure Controls and Procedures](#i4390d04750b240d895c97f04024244ab_112)** | **[39](#i4390d04750b240d895c97f04024244ab_112)** |
| **[Internal Control over Financial Reporting](#i4390d04750b240d895c97f04024244ab_115)** | **[39](#i4390d04750b240d895c97f04024244ab_115)** |
| **[Limitations of Controls and Procedures](#i4390d04750b240d895c97f04024244ab_118)** | **[39](#i4390d04750b240d895c97f04024244ab_118)** |
| **[TECHNICAL INFORMATION](#i4390d04750b240d895c97f04024244ab_121)** | **[39](#i4390d04750b240d895c97f04024244ab_121)** |
| **[CAUTIONARY STATEMENT ON FORWARD LOOKING STATEMENTS](#i4390d04750b240d895c97f04024244ab_124)** | **[39](#i4390d04750b240d895c97f04024244ab_124)** |

---

------

![image_1a.jpg](image_1a.jpg)

**Management's Discussion and Analysis of Operations and Financial Condition**

*This Management's Discussion and Analysis of Operations and Financial Condition ("MD&A") of i-80 Gold Corp. (the "Company" or "i-80 Gold") should be read in conjunction with the Company's audited consolidated financial statements (the "Financial Statements") for the year ended December 31, 2022, and the notes thereto. The Company's Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Unless otherwise stated, all amounts discussed herein are denominated in U.S. dollars. This MD&A was prepared as of March 14, 2023, and all information is current as of such date. Readers are encouraged to read the Company's public information filings on i-80 Gold's web-site at www.i80gold.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.*

*This discussion provides management's analysis of the Company's historical operating and financial results and provides estimates of future operating and financial performance based on information currently available. Actual results may vary from estimates and the variances may be significant. Readers should be aware that historical results are not necessarily indicative of future performance. Cautionary statements regarding mineral reserves and mineral resources, and forward-looking information can be found in the Sections titled "Technical Information" and "Cautionary Statements on Forward-Looking Statements" in this MD&A.*

*The Company has included certain non-IFRS financial performance measures, which the Company believes, that together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-IFRS financial performance measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar non-IFRS financial performance measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Descriptions and reconciliations associated with the non-IFRS financial performance measures can be found in the section titled "Non-IFRS Financial Performance Measures" in this MD&A.*

**Highlights**

**Fourth Quarter**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Q4 2022 gold sales of 6,769 ounces at an all-in sustaining cost of $1,137 per ounce sold <sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• December 31 cash balance of $48 million and $33 million in restricted cash

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continued exploration success at Ruby Hill with multiple high-grade intercepts including the discovery of polymetallic and base metal mineralization zones (4,509 core feet and 6,875 reverse circulation (RC) feet drilled)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 5,039 core feet and 4,940 RC feet drilled to expand monitoring of the hydraulic properties at McCoy Cove

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed step-out and infill drilling at Buffalo Mountain (4,699 core feet, and 925 RC feet drilled)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 15,882 tons of oxide mineralized material shipped to Lone Tree from Granite Creek for processing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acquisition of the Argenta property with key water rights for executing on the Cove Project de-watering strategy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lone Tree autoclave engineering study progressing on plan

**Full Year 2022**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gold sales of 21,097 ounces; all-in sustaining cost of $1,182 per ounce sold <sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Commenced trading on the New York Stock Exchange on May 19, 2022 under the symbol IAUX

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Closed and funded the gold prepay and silver purchase and sale agreements totaling $75 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increased the size of the Granite Creek property package by approximately 1,280 acres (518 hectares), extending exposure along the primary fault structure by approximately 1.6 km north towards the Turquoise Ridge Mine, and 1.6 km south of Granite Creek

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Achieved high-grade results from the underground drill program at Granite Creek with multiple intercepts in the Ogee and South Pacific zones, comprised primarily of oxide mineralization, amenable to non-refractory processing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Discovery of the Hilltop zone, a new zone of mineralization at Ruby Hill, containing high-grade precious metals and base metals

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 4,359 feet of development completed at Granite Creek

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3,095 feet of exploration ramp advancement completed at McCoy-Cove

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed first gold sale in Company history

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A total of 240,449 feet (core and RC) drilled during the year with multiple positive results, especially at Ruby Hill and Granite Creek to expand mineralization further

<u>______________________________________________________________________________________________</u>

<sup>1</sup> See "Non-IFRS Financial Performance Measures" section of this MD&A.

------

![image_1a.jpg](image_1a.jpg)

**OVERVIEW**

**Company Overview**

i-80 Gold Corp. is a Nevada-focused growth-oriented gold and silver producer engaged in the exploration, development, and production of gold, silver and polymetallic deposits. The Company's principal assets (all wholly-owned) include the Ruby Hill Mine, Lone Tree Mine, Granite Creek Project, and McCoy-Cove Project.

The Company was incorporated on November 10, 2020, in the province of British Columbia, Canada. The Company's common shares are listed on the Toronto Stock Exchange ("TSX") under the symbol IAU and the New York Stock Exchange ("NYSE") under the symbol IAUX. The Company's headquarters are located at 5190 Neil Road, Suite 460, Reno, Nevada, 89502.

**FINANCING AGREEMENTS**

*Private Placement Offering*

On February 22, 2023, the Company closed a private placement offering of $65 million principal amount of secured convertible debentures (the "Convertible Debentures") of the Company. The Convertible Debentures will bear interest at a fixed rate of 8.00% per annum and will mature on February 22, 2027, being the date that is four years from the offering closing date.

The Convertible Debentures will be the senior unsecured obligation of the Company and will be secured on a limited recourse basis by Premier Gold Mines USA, Inc. ("Premier USA"), the Company's wholly-owned subsidiary, with recourse limited to a pledge of all present and future limited liability company units issued by its wholly-owned subsidiary, Au-Reka Gold Corporation ("Au-Reka"). The Convertible Debentures will be guaranteed on a full recourse basis by Au-Reka which is secured by a first ranking security over all of Au-Reka's present and future real and personal property (including the McCoy-Cove project).

The Convertible Debentures are not redeemable prior to the Maturity Date; provided, however, that, if the Company has not executed the security documents relating to the security being provided in connection with the offering within 90 days from the closing date, the Company shall be obligated to repurchase the Convertible Debentures, by the date that is 120 days from the closing date, at a price equal to 100% of the principal amount of the Convertible Debentures then outstanding plus any accrued and unpaid interest thereon up to and including the date of redemption.

Certain directors and/or officers of the Company subscribed for $0.23 million in principal amount of Convertible Debentures under the offering.

*Orion and Sprott Financing Package*

The Company entered into a financing package with OMF Fund III (F) Ltd. an affiliate of Orion Mine Finance (collectively "Orion") on December 31, 2021, and a fund managed by Sprott Asset Management USA, Inc. and a fund managed by CNL Strategic Asset Management, LLC ("Sprott") on December 9, 2021 (together the "Finance Package").

The Financing Package in its aggregate consists of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.$50 million convertible loan (the "Orion Convertible Loan")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.$10 million convertible loan (the "Sprott Convertible Loan" and together with the Orion Convertible Loan, the "Convertible Loans")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.$45 million gold prepay purchase and sale agreement entered into with affiliates of Orion (the "Gold Prepay Agreement"), including an accordion feature potentially to access up to an additional $50 million at i-80 Gold's option

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.$30 million silver purchase and sale agreement entered into with affiliates of Orion (the "Silver Purchase Agreement"), including an accordion feature to potentially access an additional $50 million at i-80 Gold's option and an amended and restated offtake agreement entered into with affiliates of Orion (the "A&R Offtake Agreement")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.5,500,000 warrants of the Company issued to Orion (the "Orion Warrants" and together with the Orion Convertible Loan, Gold Prepay Agreement, Silver Purchase Agreement and the A&R Offtake Agreement, the "Orion Finance Package").

The $60 million in Convertible Loans have been fully funded and issued. The obligations under the Gold Prepay Agreement and Silver Purchase Agreement are senior secured obligations of the Company and its wholly-owned subsidiaries Ruby Hill Mining Company, LLC and Osgood Mining Company, LLC and secured against the Ruby Hill project in Eureka County, Nevada and the Granite Creek Project in Humboldt County, Nevada.

The Sprott and Orion Convertible Loans bear interest at 8.0% per annum and mature on December 9, 2025 and December 13, 2025, respectively. If a change of control occurs prior to the maturity date, the Company shall make an offer to prepay the Convertible Loans in cash, in an amount equal to 101% of the then outstanding principal amount. Outstanding amounts under the Convertible Loans are convertible into common shares of the Company at any time prior to maturity at the option of the applicable respective lender (a) in the case of the outstanding principal, C$3.275 per common share, and (b) in the case of accrued and unpaid interest, subject to TSX approval, at the market price of the common shares on the TSX at time of the conversion of such interest. Commencing 120 days following the closing date of the Convertible Loans, on any date when the volume weighted average price equals or exceeds 150% of the conversion price for each of the preceding 20 days, the Company may at its option elect to require the lenders to convert at the conversion price all of the then outstanding principal amount and any accrued and unpaid interest into common shares of the Company.

Under the Gold Prepay Agreement, i-80 Gold was due to deliver to Orion 3,000 troy ounces of gold for each of the quarters ending March 31, 2022 and June 30, 2022, and thereafter, 2,000 troy ounces of gold per calendar quarter until September 30, 2025 in satisfaction of the $45 million prepayment, for aggregate deliveries of 32,000 troy ounces of gold. i-80 Gold may request an increase in the $45 million prepayment by an additional amount not exceeding $50 million in aggregate in accordance with the terms of the Gold Prepay Agreement.

------

![image_1a.jpg](image_1a.jpg)

The final Gold Prepay Agreement includes an amendment to adjust the quantity of the quarterly deliveries of gold, but not the aggregate amount of gold, to be delivered by the Company to Orion over the term of the Gold Prepay Agreement. Under the amended Gold Prepay Agreement, commencing on the date of funding, the Company is required to deliver to Orion 1,600 troy ounces of gold for the quarter ending March 31, 2022, 3,100 troy ounces of gold for the quarter ending June 30, 2022, and thereafter 2,100 troy ounces of gold per calendar quarter until September 30, 2025, in satisfaction of the $45 million prepayment, for aggregate deliveries of 32,000 troy ounces of gold, subject to adjustment as contemplated by the terms of the Gold Prepay Agreement. As the funding from Orion did not occur until April 2022, payment for the delivery of 1,600 ounces for the quarter ending March 31, 2022 was offset against the $45 million of proceeds received from Orion.

Under the Silver Purchase Agreement, commencing April 30, 2022, i-80 Gold will deliver to Orion 100% of the silver production from the Granite Creek and Ruby Hill projects until the delivery of 1.2 million ounces of silver, after which the delivery will be reduced to 50% until the delivery of an aggregate of 2.5 million ounces of silver, after which the delivery will be reduced to 10% of the silver production solely from the Ruby Hill Project. Orion will pay i-80 Gold an ongoing cash purchase price equal to 20% of the prevailing silver price. Until the delivery of an aggregate of 1.2 million ounces of silver, i-80 Gold is required to deliver the following minimum amounts of silver (the "Annual Minimum Delivery Amount") in each calendar year: (i) in 2022, 300,000 ounces, (ii) in 2023, 400,000 ounces, (iii) in 2024, 400,000 ounces, and (iv) in 2025, 100,000 ounces. Upon a construction decision for the Ruby Hill project, comprised of one or both of the Ruby Deep or Blackjack Deposits, which construction decision is based on a feasibility study in form and substance satisfactory to Orion, acting reasonably, i-80 Gold will have the right to request an additional deposit from Orion in the amount of $50 million in aggregate in accordance with the terms of the Silver Purchase Agreement.

Both the Gold Prepay Agreement and the Silver Purchase Agreement were funded on April 12, 2022 with i-80 Gold receiving net proceeds of $71.6 million after netting the aforementioned March 31, 2022 gold delivery and closing costs as further described in Note 10 and Note 24 in the Company's Financial Statements.

The main amendments reflected in the A&R Offtake Agreement include the increase in the term of the agreement to December 31, 2028, the inclusion of the Granite Creek and Ruby Hill projects, and the increase of the annual gold quantity to up to an aggregate of 37,500 ounces in respect of the 2022 and 2023 calendar years and up to an aggregate of 40,000 ounces in any calendar year after 2023. During the year ended December 31, 2022, Orion assigned all of its rights, title and interest under the A&R Offtake Agreement to TRR Offtakes LLC ("Trident").

Additionally, in connection with the Gold Prepay Agreement, the Company issued to Orion the Warrants to purchase up to 5,500,000 common shares of the Company. The Warrants may be exercised at any time at an exercise price of C$3.275 per common share until December 13, 2024.

*Equinox Investmen<u>t</u>*

In December 2021, under its anti-dilution rights as contemplated in the agreement discussed in the "Plan of Arrangement with Equinox Gold" section further below, Equinox Gold Corp. ("Equinox Gold") exercised a portion of its anti-dilution right and subscribed to an additional $10 million of Common Shares at a price of C$2.62 per Common Share.

*Private Placement*

On October 14, 2021, the Company announced that it closed a non-brokered private placement (the "Private Placement"), pursuant to which the Company sold an aggregate of 39,041,515 common shares in the capital of the Company ("Common Shares") at a price of C$2.62 per Common Share (the "Issue Price"), which represented the five-day volume-weighted average trading price of the Common Shares on the TSX ending on September 2, 2021, which was the last trading date prior to the date of announcing the asset exchange agreement with Nevada Gold Mines LLC (See "Lone Tree and Ruby Hill Acquisition" further below), for aggregate gross proceeds of approximately $81.4 million (C$102.3 million).

In addition, in connection with the asset exchange agreement mentioned above, the Company and Orion agreed that the $1.75 million transfer fee payable on the disposition of the Company's interest in the South Arturo project ("South Arturo") under the offtake agreement with Orion (refer to "Previous Financing Agreements" immediately below) would be satisfied by the issuance of 839,799 common shares of the Company at a price of C$2.62 per common share. On October 21, 2021, the Company issued 839,799 Common Shares to Orion in satisfaction of the project transfer Fee.

**Previous Financing Agreements**

Also, in connection with the closing of the arrangement with Equinox Gold on April 7, 2021 (See "Plan of Arrangement with Equinox Gold" below), the Company entered into an offtake agreement with OMF Fund II (O) Ltd. ("Orion") and a silver stream agreement with OMF Fund II SO Ltd. ("Nomad").

*Offtake Agreement*

Under the terms of the Offtake Agreement, the Company agreed to sell, and Orion agreed to purchase (i) an aggregate of 29,750 ounces of refined gold for 2021, and (ii) up to an aggregate of 31,500 ounces of refined gold annually (the "Annual Gold Quantity") from the Company's Eligible Projects until March 1, 2027. The Company's Eligible Projects include the South Arturo Project, the McCoy-Cove Project, and the Granite Creek Project. The final purchase price to be paid by Orion will be, at Orion's option, a market-referenced gold price in U.S. dollars per ounce during a defined pricing period before and after the date of each sale. In the event that the Company does not produce the Annual Gold Quantity in any given year, the obligation is limited to those ounces actually produced.

------

![image_1a.jpg](image_1a.jpg)

*South Arturo Purchase and Sale Agreement (Silver)*

The Company entered into a Purchase and Sale Agreement (Silver) (the "Stream Agreement") with Nomad, which was connected to South Arturo, whereby the Company will deliver to Nomad (i) 100% of the refined silver from minerals from the main stream area, and (ii) 50% of the refined silver from the exploration stream area. Nomad will pay an ongoing cash purchase price equal to 20% of the silver market price on the day immediately preceding the date of delivery and will credit the remaining 80% against the liability. Following the delivery of an aggregate amount of refined silver equal to $1.0 million to Nomad under the Stream Agreement, Nomad would continue to purchase the refined silver at an ongoing cash purchase price equal to 20% of the prevailing silver price. The liability for the Stream Agreement was included in the net asset value in connection with the asset exchange with Nevada Gold Mines LLC ("NGM") discussed in the "Lone Tree and Ruby Hill Acquisition" section below, and therefore, is no longer impacting the Financial Statements as of December 31, 2021.

**STRATEGIC OVERVIEW**

***Agreement to Acquire Paycore Minerals***

On February 27, 2023, the Company, and Paycore Minerals Inc. ("Paycore") announced that the companies entered into a definitive agreement whereby i-80 will acquire all of the outstanding common shares of Paycore (the "Paycore Shares") pursuant to a statutory plan of arrangement.

Paycore owns the FAD property that is host to the FAD deposit located immediately south of, and adjoining, the Company's Ruby Hill Property located in Eureka County, Nevada. The transaction will consolidate the northern portion of the Eureka District, increasing the Company's land package at Ruby Hill 14,272 acres.

Pursuant to the transaction, Paycore shareholders will receive 0.68 of an i-80 Gold common share for each Paycore Share held (the "Exchange Ratio"), representing a 36% premium for Paycore shareholders based on the 20-day volume-weighted average price for both Paycore and i-80 Gold for the period ended on February 24, 2023 and a 26% premium based on the closing prices of both companies on February 24, 2023. Based on the Exchange Ratio, upon completion of the transaction, existing i-80 Gold shareholders will own approximately 90% and former Paycore shareholders will own approximately 10% of the combined company, on a fully diluted in-the-money basis.

***Argenta Acquisition***

On May 10, 2022, the Company entered into an agreement for the acquisition of the Argenta property package with Baker Hughes Oilfield Operations, LLC ("Baker Hughes"). The Argenta property located in Lander County, Nevada, includes, 582 acre-feet of water rights, a rail heading on the Nevada Central Railway, several advanced-stage barite deposits, full barite processing infrastructure, a tailing pond of approximately 50.0 acres and known gold mineralized zones from Baker Hughes. This strategic acquisition provides water rights for development and operation of the Cove open pit mine. On November 10, 2022, the Company completed the acquisition of the Argenta property for a total consideration of $3.7 million.

***Granite Creek Acquisition (Osgood Mining Company and Christison)***

On April 15, 2021, the Company, together with its subsidiary Premier USA completed the purchase agreement with affiliates of Waterton Nevada Splitter, LLC and Waterton Nevada Splitter II, LLC (collectively "Waterton") to acquire from Waterton all the outstanding membership interests of Osgood Mining Company, LLC ("Osgood"). Osgood is the owner of the Granite Creek Project (formerly the "Getchell Project") in the Getchell gold belt near Winnemucca, Nevada. Consideration paid to Waterton consisted of (i) $23.0 million in cash, (ii) 13,036,846 common shares of the Company, (iii) warrants to purchase 12,071,152 common shares of the Company, with an exercise price C$3.64 per common share, for a period of 36 months following the closing date, and (iv) contingent value rights including a payment to Waterton in the amount of $5.0 million upon the public announcement of a positive production decision related to the Granite Creek Project (underground or open pit), and an additional $5.0 million upon production of the first ounce of gold (excluding ordinary testing and bulk sampling programs) following a 60 consecutive day period where gold prices have exceeded $2,000 per ounce. The common shares and warrants issued were subject to a statutory hold period under applicable Canadian securities legislation that expired on August 15, 2021.

The Osgood acquisition was accounted for as an asset acquisition as management determined that substantially all the fair value of the gross assets acquired were concentrated on the Granite Creek Project mineral property. The components of consideration that were paid and the allocation to the net assets acquired is detailed in the table below:

------

![image_1a.jpg](image_1a.jpg)

---

| | |
|:---|:---|
| Components of consideration paid: | $ million |
| Cash | $23.0 |
| Common shares | 27.0 |
| Warrants | 6.1 |
| Transaction costs | 0.3 |
|  | $56.4 |
| Allocated value: |  |
| Buildings and equipment | $0.4 |
| Mineral properties | 58.0 |
| Reclamation and closure cost obligations | (2.0) |
|  | $56.4 |

---

For contingent consideration and payments, an accounting policy choice exists, and an entity may recognize a liability for the expected variable payments at the time control of the underlying asset is obtained or they may only recognize such a liability as the related activity that gives rise to the variability occurs. For the Osgood acquisition, management has not recognized a liability for contingent payments as the conditions required for these payments had not been met as of the date the assets were acquired.

In September 2022, the Company paid to Waterton $5.0 million as part of the contingent value rights payment due upon the public announcement of a positive production decision related to the Granite Creek Project.

*Christison Acquisition*

On December 15, 2020, Premier USA entered into a definitive purchase agreement with the Christison Family Trust and Seven Dot Cattle Co. LLC to acquire certain fee lands and unpatented mining claims (the "First Property" and the "Second Property") (collectively the "Christison Acquisition") situated in Humboldt County, Nevada, for consideration consisting of $10.0 million in cash and $5.0 million in common shares of the Company. The mining claims are located adjacent to the Granite Creek Project. During the fourth quarter of 2020 Premier USA paid $7.5 million in cash as consideration for the First Property. On May 10, 2021, Premier USA completed the acquisition of the Second Property for consideration of $2.5 million in cash and 2,430,488 common shares of the Company.

On completion of the transactions, the properties acquired in the Christison Acquisition and the Osgood Mining Company, LLC acquisition have been combined under the Granite Creek Project.

Osgood controlled a 100% interest in private lands that make up approximately 1,280 acres of the Granite Creek area through outright ownership. Additionally, Osgood controlled a 100% interest in unpatented federal lode mining claims covering approximately 797 additional acres either by outright ownership or through mining lease agreements and owned an undivided 41.67% interest in private land and unpatented federal lode mining claims covering approximately 468 additional acres.

Granite Creek has mineral resources that may be amenable to underground and open pit mining methods. The latest technical report was completed in 2020 by AMC Mining Consultants. Premier USA requested proposals to remodel the existing resource and complete a NI 43-101-compliant Preliminary Economic Assessment (PEA) based upon that resource. Global Resource Engineering (GRE), a Denver-based consulting company, completed the PEA in October 2021 in the name of i-80 Gold Corp. The report was filed on SEDAR in the fourth quarter of 2021. The Company intends to rapidly develop this property and expects that completion of the recommendations from the PEA will afford the opportunity to advance the project to full feasibility and a construction decision.

*Strategic Land Acquisition*

On May 9, 2022, the Company announced an agreement with NGM (a joint venture between Barrick Gold Corporation ("Barrick") and Newmont Corporation) to acquire strategic land sections adjoining the Granite Creek property. Total consideration for the purchase of the property sections consists of a cash payment of $4.0 million and the inclusion of the acquired sections into the existing 10% Net Profits Royalty that NGM currently holds on the existing property. Barrick will also retain a 0.5% Net Smelter Return on the new property sections.

***Lone Tree and Ruby Hill Acquisition***

In October 2021, the Company completed the closing of several agreements to create a comprehensive Nevada mining complex through the acquisition of the Ruby Hill Mine from Waterton, an asset exchange agreement with NGM, and related equity and financing agreements with NGM, Equinox Gold, and Orion Resource Partners ("Orion"). Each of these transactions are explained more fully below.

*Ruby Hill Acquisition*

On October 18, 2021, the Company completed the acquisition of Ruby Hill Mining Company, LLC ("Ruby Hill"). The Ruby Hill property is host to a historical open pit mine and multiple deposits that contain gold and silver resources, and potential for significant base metal mineralization.

The Company acquired 100% of the issued and outstanding shares of Ruby Hill for payment of $75 million in cash, 3,191,358 common shares of the Company valued at $8 million, and future milestone payments of up to $67 million that are subject to an early prepayment option that could reduce the milestone payments to $47 million.

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![image_1a.jpg](image_1a.jpg)

The four milestone payments and corresponding early prepayment options are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $17 million in cash and/or shares of i-80 Gold payable on the earlier of 60 days following the issuance of a press release by the Company regarding the completion of a new or updated Mineral Resource estimate for Ruby Hill or 15 months after closing, based on the market price of i-80 Gold's shares at the time of such payment (the "First Milestone Payment");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $15 million in cash and/or shares of i-80 Gold payable on the earlier of 60 days following the issuance of a press release by the Company regarding the completion of a Feasibility Study for Ruby Hill or 24 months after closing, based on the market price of i-80 Gold's shares at the time of such payment (the "Second Milestone Payment"). An early prepayment option to reduce the payment to $5 million is available if the payment is made less than 15 months after closing and if the payment in shares of the Company does not exceed up to $7.5 million of the total amount, at the Company's discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $15 million in cash and/or shares of i-80 Gold payable on the earlier of 30 months after closing and 90 days following the announcement by the Company of a construction decision related to a deposit on any portion of Ruby Hill that is not currently being mined, based on the market price of i-80 Gold's shares at the time of such payment (the "Third Milestone Payment"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $20 million in cash and/or shares of i-80 Gold payable on the earlier of 36 months after closing and 90 days following the announcement by the Company of achieving Commercial Production related to a deposit on any portion of Ruby Hill that is not currently being mined, priced based on the market price of i-80 Gold's shares at the time of such payment (the "Fourth Milestone Payment").

Up to 50% of the foregoing milestone payments may consist of i-80 Gold common shares, provided that the number of i-80 Gold shares then held by Waterton after giving effect to the share issuance shall not exceed 9.99% of the then issued and outstanding shares of i-80 Gold calculated on a partially diluted basis. i-80 Gold may prepay the Second Milestone Payment by paying to Waterton, on or before 15 months following closing, $10 million provided that up to $7.5 million of such amount may be satisfied, at i-80 Gold's option, in common shares of the Company, based on the market price of i-80 Gold's shares at the time of such prepayment and i-80 Gold may prepay the aggregate of the Third and Fourth Milestone Payments by paying to Waterton, on or before 24 months following closing $20 million provided that up to $10 million of such amount may be satisfied, at i-80 Gold's option, in common shares of the Company, based on the market price of i-80 Gold's shares at the time of such prepayment, provided that the number of i-80 Gold shares then held by Waterton after giving effect to the share issuance shall not exceed 9.99% of the then issued and outstanding shares of i-80 Gold calculated on a partially diluted basis.

Ruby Hill includes an open pit mine and related infrastructure, including a mill and heap leach processing circuit, and is located west of the town of Eureka, Nevada near Highway 50. Ruby Hill is host to multiple gold, silver, and base metal deposits. Refractory mineralization from Ruby Hill is expected to be trucked to the Lone Tree complex for processing following the autoclave refurbishment project.

The Company determined that the Ruby Hill Acquisition represents a business combination, with i-80 Gold as the acquirer. Transaction costs incurred in respect of the acquisition totaling $1.2 million were expensed and included within general and administrative expense in the statement of loss and comprehensive loss.

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| | |
|:---|:---|
| The acquisition date fair value of the consideration transferred consisted of the following: | $ million |
| Cash | $75.1 |
| Share-based consideration | 8.0 |
| Current portion of deferred consideration (i) | 15.5 |
| Long-term portion of deferred consideration (i) | 26.4 |
| Total consideration | $125.0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) Management's best estimate of fair value is that the early prepayment option will be exercised for all milestone payments and discounted at a rate of 7.5%: the fair value of the first milestone payment of $17 million, the second milestone prepayment of $10 million, and the third and fourth milestone prepayments totaling $20 million.

---

| | |
|:---|:---|
| Net assets (liabilities) acquired: | $ million |
| Accounts receivable and other assets | $0.2 |
| Inventory | 13.8 |
| Property, plant and equipment | 30.0 |
| Mineral property interests | 105.9 |
| Accounts payable | (1.0) |
| Accrued liabilities | (0.7) |
| Provision for environmental rehabilitation | (23.2) |
| Fair value of net assets acquired | $125.0 |

---

The fair value of property, plant and equipment, mineral property interests, and the provision for environmental rehabilitation were estimated using discounted cash flow models, comparable transactions, and other market-based information. Expected future cash flows are based on estimates of future gold and silver prices and projected revenues, estimated quantities of mineral reserves and mineral resources, expected future production costs and capital expenditures based on life-of-mine plans at the acquisition date. The fair value of inventory was based on forward gold prices and the cost to complete inventory to finished product in determining the net realizable value.

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![image_1a.jpg](image_1a.jpg)

*Asset Exchange*

On October 14, 2021, the Company completed the Asset Exchange Agreement ("Asset Exchange") with NGM. As part of the Asset Exchange, the Company acquired the Lone Tree and Buffalo Mountain gold deposits and certain processing infrastructure, including an autoclave, from NGM in consideration for: (i) the Company's 40% ownership of the South Arturo Property; (ii) assignment of the Company's option to acquire the adjacent Rodeo Creek exploration property; (iii) contingent consideration of up to $50 million based on an amount equal to $25 per ounce of recovered gold produced from the mineral resources at the Lone Tree property; and (iv) arrangement of substitute bonding in respect of the Lone Tree and Buffalo Mountain reclamation obligations. In addition, NGM reimbursed the Company approximately $7.3 million for funds previously advanced by the Company to NGM for the autonomous truck haulage test work completed at South Arturo and for funds advanced by the Company that were not used for reclamation activities at South Arturo.

The legal transfer was effective June 1, 2021 and as such, the Company obtained the free cash flow from Lone Tree's operations from June 1, 2021 until October 14, 2021 and in exchange, NGM obtained the free cash flow from the Company's 40% of South Arturo's operation from June 1, 2021 until October 14, 2021. NGM also entered into a Subscription Agreement where NGM subscribed to $47.4 million in the Company's common shares.

The Company determined that the Asset Exchange represents an asset acquisition. Transaction costs incurred with respect to the Asset Exchange totaled $3.3 million which were included in the components of consideration paid.

The disposal of the Company's 40% interest in South Arturo created no gain or loss of control.

---

| | |
|:---|:---|
| Components of consideration paid: | $ million |
| Book value of South Arturo asset | $42.8 |
| NGM reimbursement | (7.3) |
| Transaction costs | 3.3 |
| Transfer payment | 1.8 |
| Total consideration | $40.6 |

---

The underlying assets purchased and liabilities assumed were recorded at cost, and were allocated based upon their relative fair values at the date of purchase. The table below presents the values of the assets purchased and liabilities assumed on the date of acquisition:

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| | |
|:---|:---|
| Net assets (liabilities) acquired: | $ million |
| Cash | $1.1 |
| Inventory | 3.5 |
| Property, plant and equipment | 166.5 |
| Mineral property interests | 65.5 |
| Provision for environmental rehabilitation | (60.5) |
| Fair value of net assets acquired - Gross of tax | $176.1 |
| Taxes payable | (1.1) |
| Deferred tax liability | (27.7) |
| Fair value of net assets acquired - Net of tax | $147.3 |

---

The fair value of property, plant and equipment, mineral property interests, and the provision for environmental rehabilitation were estimated using discounted cash flow models, comparable transactions, and other market-based information. Expected future cash flows are based on estimates of future gold and silver prices and projected revenues, estimated quantities of mineral reserves and mineral resources, expected future production costs and capital expenditures based on life-of-mine plans at the acquisition date. The fair value of inventory was based on forward gold prices and the cost to complete inventory to finished product in determining the net realizable value.

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| | |
|:---|:---|
| Income statement impact: | $ million |
| Gain arising on asset exchange - Gross of tax | $135.5 |
| Income tax expense | (28.8) |
| Total gain arising on asset exchange - Net of tax | $106.7 |

---

For contingent consideration and payments, an accounting policy choice exists and an entity may recognize a liability for the expected variable payments at the time control of the underlying asset is obtained or they may only recognize such a liability as the related activity that gives rise to the variability occurs. For the Asset Exchange, management has not recognized a liability for contingent payments as the conditions required for these payments have not been met as of the date the assets were acquired.

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![image_1a.jpg](image_1a.jpg)

***Plan of Arrangement with Equinox Gold***

On December 16, 2020, Premier Gold Mines Limited ("Premier") and Equinox Gold announced that the companies entered into a definitive agreement (the "Agreement") whereby Equinox Gold would acquire all the outstanding shares of Premier (the "Transaction"). Concurrently, Premier would spin out its U.S. assets and operations which are included in the entities listed in Note 2(b) of the Financial Statements to a newly formed Canadian domiciled company i-80 Gold Corp. On closing of the Transaction, existing Equinox Gold and Premier shareholders would own approximately 84% and 16%, respectively, of Equinox Gold, and Equinox Gold and existing shareholders of Premier would own 30% and 70% of the Company, respectively, on an issued share basis.

On February 23, 2021, Premier's security holders voted to approve the Transaction. By approving the Transaction, Premier security holders also approved the spin out to its shareholders shares of the Company.

On March 18, 2021, the Company completed its private placement offering of 30,914,614 subscription receipts at a subscription price of C$2.60 for aggregate gross proceeds of approximately C$80.4 million.

Concurrently with the Company's offering, Equinox Gold advanced to the Company a $20.75 million bridge loan that was used by the Company for the purposes of making a $20.75 million cash deposit with affiliates of Waterton Global Resource Management, Inc. ("Waterton") in partial satisfaction of the purchase price payable to Waterton for the acquisition of the Granite Creek Project. The loan matured and was repaid within 10 banking days following the closing of the Transaction in accordance with the agreement.

The Transaction closed on April 7, 2021. Premier shareholders received 0.1967 of an Equinox Gold share for each Premier share held representing an at-market acquisition based on the 10-day volume-weighted average closing prices for both Equinox Gold and Premier shares on the TSX; and 0.4 of a share of the Company for each Premier share held.

On April 7, 2021, just prior to the completion of the spin out of Premier by way of the Plan of Arrangement ("the Arrangement"), the Company issued 137,624,461 common shares to Premier for the transfer of its investment in Premier USA to the Company for the carrying amount of the investment, $150.6 million (1,614 common shares) offset by $4.4 million allocated to the equity settled employee benefits reserve for replacement options, $0.9 million for the transfer of the South Arturo silver stream, and $0.5 million for replacement warrants issued pursuant to the Arrangement resulting in $144.9 million in equity.

In accordance with the terms of the Arrangement, the Company and Equinox Gold exchanged existing Premier stock options at the same ratio as shareholders received on the distribution of the Company to Premier shareholders and as such, the Company issued 0.4 of a stock option for each Premier option held. This resulted in 5,722,000 replacement options to option holders on record as of April 7, 2021 at an average option price of C$1.88. The replacement options were valued at $4.4 million and reduced the investment in Premier USA and were allocated to the equity settled employee benefits reserve.

Also, in accordance with the terms of the Arrangement, a portion of the existing Premier silver stream agreement and replacement warrants were also allocated to the Company. The resulting valuation of $0.9 million for the transfer of the South Arturo silver stream and $0.5 million for 800,000 replacement warrants reduced the investment in Premier USA and were recorded as liabilities of the Company.

Following the completion of the spin out on April 7, 2021, the subscription receipts were released from escrow and converted to common shares of the Company and were listed and posted for trading on the TSX. Trading in the Company's common shares commenced at the opening of the TSX on April 13, 2021, under the symbol "IAU".

**Functional and Presentation Currency**

The functional currency of the Company is the United States dollar ("USD" or "US dollars") which reflects the underlying transactions, events and conditions that are relevant to the entity. Management considers primary and secondary indicators in determining functional currency including the currency that influences sales prices, labor, purchases and other costs. Other indicators include the currency in which funds from financing activities are generated and the currency in which receipts from operations are usually retained.

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![image_1a.jpg](image_1a.jpg)

**RESULTS OF OPERATIONS**

**Three and Twelve Months Results**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2022** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** | **Three months ended December 31, 2021** |
|<br>*(in thousands of U.S. dollars, unless otherwise noted)* | **From Continuing Operations** | **From Disc. Operations** | **Total** | **From Continuing Operations** | **From Disc. Operations** | **Total** |
| **Revenue** | **11647** | **—** | **11647** |  |  |  |
| Cost of sales | **(13530)** | **—** | **(13530)** |  |  |  |
| Depletion, depreciation and amortization | **(1579)** | **—** | **(1579)** |  |  |  |
| **Mine operating income (loss)** | **(3462)** | **—** | **(3462)** |  |  |  |
| **Expenses** |  |  |  |  |  |  |
| Exploration, evaluation, and pre-development | **6625** | **—** | **6625** | 4537 |  | 4537 |
| General and administrative | **4509** | **—** | **4509** | 3930 | 6 | 3936 |
| Restructuring cost | **—** | **—** | **—** |  |  |  |
| Property maintenance | **2111** | **—** | **2111** | 116 |  | 116 |
| Share-based payments | **820** | **—** | **820** | 291 |  | 291 |
| **Operating income (loss)** | **(17527)** | **—** | **(17527)** | (8874) | (6) | (8880) |

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** |
|<br>*(in thousands of U.S. dollars, unless otherwise noted)* | **From Continuing Operations** | **From Disc. Operations** | **Total** | **From Continuing Operations** | **From Disc. Operations** | **Total** |
| **Revenue** | **36958** | **—** | **36958** |  | 31991 | 31991 |
| Cost of sales | **(28861)** | **—** | **(28861)** |  | (17207) | (17207) |
| Depletion, depreciation and amortization | **(4528)** | **—** | **(4528)** |  | (1691) | (1691) |
| **Mine operating income** | **3569** | **—** | **3569** |  | 13093 | 13093 |
| **Expenses** |  |  |  |  |  |  |
| Exploration, evaluation, and pre-development | **38809** | **—** | **38809** | 10477 | 1034 | 11511 |
| General and administrative | **17090** | **—** | **17090** | 10456 | 175 | 10631 |
| Restructuring cost | **—** | **—** | **—** | 4444 |  | 4444 |
| Property maintenance | **3249** | **—** | **3249** | 387 |  | 387 |
| Share-based payments | **3280** | **—** | **3280** | 2683 |  | 2683 |
| **Operating income (loss)** | **(58859)** | **—** | **(58859)** | (28447) | 11884 | (16563) |

---

**Mine operating loss** from continuing operations of $3.5 million for the three months ended December 31, 2022, was driven mainly by revenue of $11.6 million from sales of 6,769 ounces of gold and 2,072 ounces of silver offset by cost of sales and depletion, depreciation and amortization of $13.5 million and $1.6 million, respectively. Depletion, depreciation and amortization expenses relates to the specific assets at Lone Tree and Ruby Hill. During the three months ended December 31, 2022, an impairment to reduce the inventories to net realizable value of $6.5 million was recorded against cost of sales. The inventory impairment is derived primarily from an increase on leaching chemicals and reagents costs, particularly cyanide, antiscalent and caustic soda which increased due to the shifting economic environment and high inflation rates. Inflation rates impacted most of the goods and services used in the operations. The inventory write-down occurred due to this increase in cost which was coupled with a decrease in the recovered ounces as the heap leach recovery is reducing on the residual leach pads for both Ruby Hill and Lone Tree operations.

**Mine operating income** from continuing operations of $3.6 million for the year ended December 31, 2022, was driven mainly by revenue of $37.0 million from sales of 21,097 ounces of gold and 8,027 ounces of silver, offset by cost of sales and depletion, depreciation and amortization of $28.9 million and $4.5 million, respectively. Depletion, depreciation and amortization expenses relates to the specific assets at Lone Tree and Ruby Hill. The cost of sales for the full year was impacted by the inventory write-down as described in the preceding paragraph.

Mine operating income from discontinuing operations of $13.1 million for the year ended December 31, 2021, was from 40% interest in the South Arturo mine. On 2021, the Company completed the Asset Exchange with NGM (discussed previously) and South Arturo was classified as a discontinued operation.

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![image_1a.jpg](image_1a.jpg)

**Operating loss** of $17.5 million for the three months ended December 31, 2022 increased $8.6 million from operating loss of $8.9 million for the comparable three month period of 2021 mainly due to an increase in exploration, evaluation and pre-development expenses of $2.1 million, higher property maintenance expenses associated with activities to upkeep the properties of $2.0 million and a decrease in mine operating income from continuing operations of $3.5 million, as explained in the previous paragraph. During the three months ended December 31, 2022, the Company continued to advance the surface and underground drill program at Ruby Hill and ramp-up a drilling program at McCoy Cove and Buffalo Mountain. At Ruby Hill, activities continued for infill and step-out drilling of the Hilltop Zone. At McCoy Cove, a surface drilling program started and continued to progress to measure pore water pressure (piezometric level) in the ground as part of the pre-development plan. At Buffalo Mountain exploratory drilling was performed to collect samples for metallurgical work as well as increase confidence in the geologic and resource models.

**Operating loss** of $58.9 million for the year ended December 31, 2022 increased $42.3 million over the operating loss of $16.6 million for the year ended December 31, 2021 mainly due to a decrease in mine operating income from continuing and discontinuing operations of $9.5 million, and an increase of $27.3 million and $6.5 million in exploration and general and administrative costs, respectively. During the year ended December 31, 2022, the Company continued to advance the surface drilling program at Ruby Hill, as discussed immediately above, and completed an exploratory drilling program to further expand the resources at Granite Creek. General and administrative expenses are associated with the growth and development of the organization, as the Company became a stand-alone entity in April 2021, and started incurring stand-alone general and administrative expenses.

**Exploration, evaluation, and pre-development** total costs of $6.6 million for the three months ended December 31, 2022 increased $2.1 million over the comparable three month period of 2021 mainly due to exploration and pre-development work at McCoy Cove and exploration activities at Ruby Hill and Buffalo Mountain, as mentioned above. At Ruby Hill, a total of 4,509 feet of core and 6,875 feet of RC were completed as part of the continuing drilling program of the Upper and Lower Hilltop Zones. At McCoy Cove, a total of 5,039 feet of core and 4,940 feet of RC were completed to expanded water monitoring capabilities and study the hydraulic properties of the project to support permitting efforts. At Buffalo Mountain, 4,699 feet of core and 925 feet of RC were completed for the exploratory drilling program.

For the year ended December 31, 2022 exploration, evaluation, and pre-development costs increased $27.3 million over the year ended December 31, 2021 as the Company continued to progress drilling programs at both Granite Creek and Ruby Hill. At Granite Creek, a total of 83,887 feet of core and RC drilling has been completed to further expand the resources within the Ogee, Otto, Adam Peak, Range Front and the South Pacific zones. At Ruby Hill, activities continued for infill and step-out drilling of the Ruby Deeps, 426 and Hilltop Zones, completing a total of 137,210 feet of core and RC drilling. At McCoy Cove, a total of 9,979 feet of core and RC drilling were completed, as mentioned above. At Buffalo Mountain, a total of 9,374 feet of core and RC drilling has been completed as part of the exploration drilling program to update the geologic model.

**General and administrative expenses** totaled $4.5 million for the three months ended December 31, 2022 compared to $3.9 million for the three months ended December 31, 2021, mainly due to an increase in insurance premium costs of $0.5 million.

General and administrative expenses of $17.1 million for the year ended December 31, 2022 increased $6.5 million over the general and administrative expenses of $10.6 million for the year ended December 31, 2021. During the 2021 period, the Company's subsidiary, Premier USA, previously a subsidiary of Premier Gold Mines Limited, incurred minimal corporate general and administrative expenses until the completion of the Transaction with Equinox Gold in April, 2021. Additionally, the Company has increased corporate administrative staff, as planned, following the growth-related acquisitions completed in the second half of 2021 and during 2022, the mentioned administrative staff increase totaled $3.0 million, furthermore, the Company incurred an increase in insurance premium costs of $1.8 million, compared to 2021.

**Share-based payments** relate to the issuance of stock options, restricted share units and deferred share units. Share-based payments totaled $0.8 million for the three months ended December 31, 2022, compared to $0.3 million for the same three month period of 2021.

Share-based payments of $3.3 million for the year ended December 31, 2022 compared to the year ended December 31, 2021 of $2.7 million increased due to associated advancement and growth of the organization headcount year over year.

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![image_1a.jpg](image_1a.jpg)

**Selected Quarterly Information**

The following is a summary of selected operating and financial information from the past eight quarters.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| *(in thousands of U.S. dollars, unless otherwise noted)* | **Q4** | **Q3** | **Q2** | **Q1** | **Q4** | **Q3** | **Q2** | **Q1** |
|  | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2021** |
| From continued and discontinued operations: |  |  |  |  |  |  |  |  |
| Gold sales (ounces) (ii) | **6769** | 9332 | 3507 | 1489 |  | 4575 | 5745 | 7529 |
| Revenue | **11647** | 16065 | 6383 | 2864 |  | 8166 | 10250 | 13576 |
| Costs of sales | **(13530)** | (9834) | (3966) | (1532) |  | (4374) | (6491) | (6342) |
| Depletion, depreciation and amortization | **(1579)** | (2126) | (655) | (168) |  | (467) | (329) | (894) |
| Mine operating income / (loss) | **(3462)** | 4105 | 1762 | 1164 |  | 3325 | 3430 | 6340 |
| **Other significant income / (loss):** |  |  |  |  |  |  |  |  |
| Exploration, evaluation and pre-development | **(6625)** | (10798) | (12132) | (9254) | (4537) | (3690) | (2724) | (560) |
| General and administrative | **(4509)** | (4743) | (4565) | (3273) | (3937) | (3389) | (2543) | (762) |
| Restructuring costs | **—** |  |  |  |  |  | (4444) |  |
| Exchange gain / (loss) on related party balance | **—** |  |  |  |  |  | 1058 | (809) |
| Share-based payments | **(820)** | (471) | (547) | (1442) | (291) | (424) | (1898) | (70) |
| Other income / (expense) | **(43696)** | 3524 | 38772 | (10281) | 130504 | (4908) | 473 | (49) |
| Finance expense | **(5954)** | (6298) | (5880) | (2357) |  |  | 73 | (1250) |
| Income / (loss) for the period | **(63938)** | (11272) | 19276 | (23265) | 101775 | (9340) | (7062) | 2851 |

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(i)May not total to annual amounts due to rounding.

(ii)The Company previously held a 40% interest in the South Arturo mine located in Nevada. On October 14, 2021, the Company completed the asset exchange with NGM (discussed previously) and South Arturo was classified as a discontinued operation.

Gold sales of 6,769 ounces in Q4 2022 decreased 2,563 ounces over Q3 2022. Gold ounces sold in Q3 2021 and prior quarters were from discontinued operations (South Arturo). Gold ounces sold in 2022 are from residual heap leaching operations continuing at Lone Tree and Ruby Hill.

Revenue of $11.6 million in Q4 2022 was $4.4 million lower as compared to Q3 2022 due to a decrease in gold ounces sold, the average realized gold price in Q4 2022 was $1,714 per ounce sold compared to $1,712 per ounce sold in Q3 2022. Similar to gold ounces sold, revenue in Q3 2021 and prior quarters was from the discontinued South Arturo operation. Revenue in 2022 is from residual heap leaching operations continuing at Lone Tree and Ruby Hill.

Cost of sales of $13.5 million in Q4 2022 increased $3.7 million from Q3 2022. The increase in cost of sales was driven mainly by an inventory impairment of $6.5 million and by global inflationary pressures on operating costs, offset by lower gold sales.

Mine operating loss for Q4 2022 was $3.5 million, a decrease of $7.6 million compared to Q3 2022 due to a decrease in gold sales and an increase in cost of sales, as mentioned previously, partially offset by a decrease in depletion, depreciation and amortization expenditures.

The loss in Q4 2022 of $63.9 million was primarily impacted by other expenses of $43.7 million and also by exploration, evaluation and pre-development expenditures of $6.6 million, general and administrative expenditures of $4.5 million, finance expenses of $6.0 million and a mine operating loss of $3.5 million, mainly due to exploration-related expenditures at Ruby Hill, McCoy Cove and Buffalo Mountain, corporate administrative salaries and wages, insurance premium costs and outside consulting fees, a loss related to the embedded derivatives on the convertible loans and warrants, a loss related to the embedded derivatives on the gold prepay and silver purchase agreements, as further discussed below in the "Other Income and Expense" section, and accretion expenses recognized during the period related to the asset retirement obligations from the Company's properties. The loss on the embedded derivatives from the convertible loans relates to the effective interest calculation from the discounted cash flow models. The loss on the embedded derivatives related to the gold prepay and silver purchase agreements is the difference between the fair values at the inception date of the agreements and at December 31, 2022 and is attributable to the variability between the foregone revenue applied to the revenue streams and the estimated amount and timing of ounces to be delivered.

Exploration, evaluation, and pre-development costs decreased in Q4 2022 compared to previous quarters in 2022 mainly due to the completion of the drilling program at Granite Creek.

Finance expenses in Q4 2022 of $6.0 million decreased compared to Q3 2022 mainly due to a decrease in interest accretion of $0.2 million on the asset retirement obligations from the Company's properties.

The income in Q4 2021 of $101.7 million included a gain on the Asset Exchange of $135.5 million, discussed previously in the "Strategic Overview" section.

------

![image_1a.jpg](image_1a.jpg)

**Operational Highlights**

<u>Ruby Hill</u>

Ruby Hill is located within the Battle Mountain-Eureka Trend, and is host to the Archimedes open pit and multiple gold, silver and base metal deposits. Processing infrastructure at Ruby Hill includes a primary crushing plant, grinding mill, leach pad, and carbon-in-column circuit. The Company's interest in Ruby Hill is held through Ruby Hill Mining Company, LLC. Highlights for the three and twelve months ended December 31, 2022, include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gold production and sales during Q4 2022 of 4,002 ounces (Year to date of 13,031 ounces) at an average realized gold price of $1,678 per ounce sold (Year to date $1,710 per ounce sold) <sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Q4 2022 Cash cost of $1,135 per ounce sold (Year to date $1,126 per ounce sold); All-in sustaining cost of $1,185 per ounce sold (Year to date $1,187 per ounce sold) <sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Systematically re-leaching multiple areas of the heap with primary focus on mineralized material stacked in 2020-2021, during the fourth quarter of 2022 began leaching side slopes of heap leach material

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shipped approximately 14,850 gold ounces on loaded carbon from site for further processing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed scoping study for processing plant restart

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Permit modifications submitted for in-pit portal, office, shotcrete plant and additional infrastructure in preparation for underground development

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Advancing permitting for underground development

<u>______________________________________________________________________________________________</u>

<sup>1</sup> See "Non-IFRS Financial Performance Measures" section of this MD&A.

<u>Lone Tree</u>

Lone Tree is an advanced-stage development project located within the Battle Mountain-Eureka Trend, midway between the Company's Granite Creek and McCoy-Cove projects. The property consists of the past-producing Lone Tree mine and processing facility, as well as the nearby Buffalo Mountain deposit and the Brooks open pit mine, which is currently on care and maintenance. Processing infrastructure at Lone Tree includes an autoclave, carbon-in-leach mill, flotation mill, heap leach facility, assay lab and gold refinery, tailings dam, waste dumps and several buildings that the Company anticipates will be useful for developing all mining projects, including a warehouse, maintenance shop and administration building. Highlights for the three and twelve months ended December 31, 2022, include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gold production and sales during Q4 2022 of 2,768 ounces (Year to date 8,066 ounces) at an average realized gold price of $1,766 per ounce sold (Year to date $1,799 per ounce sold) <sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Q4 2022 Cash cost of $894 per ounce sold (Year to date $936 per ounce sold); All-in sustaining cost of $1,067 per ounce sold (Year to date $1,174 per ounce sold)<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Autoclave engineering study progressing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Developing project execution plan for autoclave refurbishment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tailings trade-off study of conventional deposition versus filtered tails completed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engineering for environmental permitting, air, water, and tailings for autoclave refurbishment continued

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Metallurgical test work continues, preliminary results used to inform the plant Process Design Criteria

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Residual leaching of the heap on plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shipped approximately 8,800 gold ounces on loaded carbon from site for further processing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continued Trona additions to the pit lake for pH control on plan, as required by environmental permit

<u>______________________________________________________________________________________________</u>

<sup>1</sup> See "Non-IFRS Financial Performance Measures" section of this MD&A.

<u>Granite Creek</u>

Granite Creek has an extended history of gold exploration and mining activity. Gold was initially discovered in the mid to late 1930's. Approximately one million ounces have been produced from the property since that time. Granite Creek comprises several land parcels which now encompass approximately 4,480 acres, located in the Potosi mining district, 27 miles northeast of Winnemucca, within the southeastern part of Humboldt County, Nevada. The seven-square miles of land contain all areas of past gold production and the area of the currently estimated mineral resource. This area includes the historical Pinson Mine. Highlights for the three and twelve months ended December 31, 2022, include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continued upgrading existing de-watering infrastructure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed backfill aggregate crushing campaign

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed drilling a supplementary de-watering well extending beyond previously existing wells

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Instituted ore control procedures and reconciliation process

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ventilation raise 105' deeper in mine completed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Developed three new mining levels in the Ogee Zone

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commissioned and utilized backfill plant

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 15,882 tons of oxide material hauled to the Lone Tree leach pad

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed 4,359 feet of development as of December 31, continued developing main ramp deeper in the mine

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First mineralized material delivery to Twin Creeks under NGM agreement started in June

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![image_1a.jpg](image_1a.jpg)

Processing of mineralized material delivered to NGM will commence once the contractual initial tonnage of refractory mineralized material is delivered. Mining to date has encountered significantly more oxide (not-refractory) mineralized material than expected leading to less refractory tons delivered to NGM. Preparations to leach oxide material from Granite Creek at the existing Lone Tree leach pad were made. At the end of 2022, oxide material from Granite Creek was placed on a designated section of the Lone Tree leach pad and was put under leach in early 2023. Total mineralized material production is expected to improve following the completion of the drop raise, which will enable three additional fully-developed levels.

<u>McCoy Cove</u>

The McCoy Cove Project covers 30,923 acres and is located 32 miles south of the town of Battle Mountain, in the Fish Creek Mountains of Lander County, Nevada, and lies within the McCoy Mining District. The McCoy Cove Project is, for the most part, on land controlled by the U.S. Department of Interior, Bureau of Land Management ("BLM") and patented mining claims. The McCoy-Cove Project consists of 1,535 100%-owned unpatented claims and twelve leased patented claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commenced drilling activities involving Rapid Infiltration Basins (RIBs) characterization and deep well installations for groundwater studies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed 1,202 feet of development during the fourth quarter, 3,095 feet of development as of December 31, 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• De-watering and water treatment scenarios trade-off evaluation moving forward

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Advancing permitting for full mine plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Integrated Argenta water rights and facilities into i-80

**Exploration, Evaluation and Pre-development, McCoy-Cove, Granite Creek, Buffalo Mountain and Ruby Hill** 

During the year ended December 31, 2022, the Company was primarily focused on exploration and pre-development activities at McCoy Cove, Granite Creek, Buffalo Mountain and Ruby Hill. The following table summarizes the exploration, evaluation, and pre-development expenditures for the three and twelve months ended December 31, 2022 and 2021.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended<br>December 31,** | **Three months ended<br>December 31,** | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| McCoy-Cove, Nevada | **2073** | 233 | **4196** | 1137 |
| Granite Creek, Nevada | **227** | 3471 | **13578** | 8423 |
| Ruby Hill, Nevada | **3352** | 825 | **19552** | 825 |
| Buffalo Mountain, Nevada | **961** |  | **1483** |  |
| Other (i) | **12** | 8 | **—** | 92 |
| **Total exploration, evaluation and pre-development** | **6625** | **4537** | **38809** | **10477** |

---

(i)Other includes charges for regional technical services costs not charged to a property.

**Exploration, evaluation and pre-development** expenses from continuing operations of $6.6 million for the three months ended December 31, 2022 increased $2.1 million compared to the three month period ended December 31, 2021 primarily as a result of exploration and pre-development work at McCoy-Cove, Buffalo Mountain and Ruby Hill, and a decrease in exploration-related activities in Granite Creek. The increase of $28.3 million for the year ended December 31, 2022 in contrast with the same period of 2021 was mainly due to the increase in exploration and pre-development costs at McCoy-Cove, Granite Creek and Ruby Hill, as a result of a full year ownership of these properties and the success and expansion of the drilling programs. Further details regarding the Company's exploration, evaluation and pre-development activities at these properties are discussed immediately below.

<u>Granite Creek</u>

The 2022 underground drill program at Granite Creek was focused on delineating mineralization for mining as well as upgrading and expanding resources expected to provide the bulk of mineralization to be mined in the following twelve months. Multiple underground levels have been developed, especially on the Ogee Zone, and the Company continued to extend the decline to depth, with the goal of initiating access to the new South Pacific Zone located immediately below and to the north of the underground mine workings. The Company targets to complete underground drilling and bring the newly discovered South Pacific Zone into the Granite Creek mine plan in 2023. In the upper parts of the mine, high-grade gold mineralization was being defined in the Otto, Adam Peak and Range Front horizons, while from the lower levels drilling was focused on defining mineralization in the Ogee Zone that is expected to be the primary zone in the near future. The amount of drilling completed as of December 31, 2022 totaling 83,887 feet was in line with the Company's drilling plan.

For the full year 2022, 17,455 tonnes of mineralized material was mined at an average grade of 7.6 g/t. The refractory material was shipped to the Twin Creeks facility for processing pursuant to the toll milling agreement that is in place with Nevada Gold Mines. The oxide material was stockpiled and has subsequently been shipped to Lone Tree for processing.

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![image_1a.jpg](image_1a.jpg)

<u>Ruby Hill</u>

During the fourth quarter, drilling of the Ruby Deeps and the Hilltop zones continued with multiple high-grade mineralization intercepts and multiple brownfield exploration targets tested, including discovery of polymetallic mineralization. 4,509 feet of core drilling and 6,875 feet of RC drilling was completed during the quarter, with a combined total of 137,210 feet completed in the year ended December 31, 2022. Due to the substantial success of the 2022 drill campaign at Ruby Hill, the program has been expanded into 2023. The primary targets of the first part of the program will be the Hilltop Corridor that includes polymetallic Carbonate Replacement Deposit (CRD) mineralization including the Upper, Lower and East Hilltop Zones, skarn mineralization in the Blackjack and Hilltop Corridor targets, and multiple untested geophysical anomalies. The Ruby Hill property provides significant optionality as it is host to oxide gold, sulphide gold, polymetallic CRD and skarn base metal mineralization. All deposits are located in close proximity to the underground infrastructure development being planned in 2023.

The Company continued to advance permitting for the construction of a decline to access the high-grade Ruby Deeps deposit and the Blackjack Zone with the intent of trucking refractory mineralization for processing at Lone Tree. The Company also completed a scoping study during the quarter for the restart of the existing oxide mill and subsequent conversion to a base metals facility.

<u>McCoy-Cove</u>

There was 9,979 feet of core and RC drilling conducted during the fourth quarter of 2022 for hydrogeologic characterization to support permitting efforts. Expenditures continued during the quarter on the exploration ramp and hydrology studies, and engineering of de-watering and mining options. The Board of Directors of the Company approved an exploration ramp and underground drilling program at McCoy Cove on November 9, 2021 and commencement of an underground portal began on February 23, 2022. As of the end of the fourth quarter, development footage completed was 3,095 feet. Commencement of an underground portal began on February 23, 2022.

<u>Buffalo Mountain</u>

A total of 5,624 feet of core and RC was drilled during the fourth quarter of 2022, with a combined total of 9,374 feet completed in the year ended December 31, 2022. The Buffalo Mountain drill program consisted of infill and step-out drilling to obtain material for metallurgical work and to further increase confidence in the geological and resource model.

The following table represents the cumulative exploration, evaluation, and pre-development expenses to date by project.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Status** | **Cumulative to December 31, 2020** | **Period ending December 31, 2021** | **Cumulative to December 31, 2021** | **Period ending December 31, 2022** | **Cumulative life of project to date** |
| *(in thousands of U.S. dollars) (i)* |  |  |  |  |  |  |
| Granite Creek, Nevada | Active |  | 8423 | 8423 | **13578** | **22001** |
| McCoy-Cove, Nevada | Active | 56609 | 1137 | 57746 | **4196** | **61942** |
| Lone Tree, Nevada | Active |  | 4 | 4 | **—** | **4** |
| Ruby Hill, Nevada | Active |  | 825 | 825 | **19552** | **20377** |
| Buffalo Mountain, Nevada | Active |  |  |  | **1483** | **1483** |
| Goldbanks, Nevada | Terminated | 7420 |  | 7420 | **—** | **7420** |
| Rye, Nevada | Terminated | 1195 | 1 | 1196 | **—** | **1196** |
| Other (ii) |  | 401 | 87 | 488 | **—** | **488** |
| **Total** |  | 65625 | 10477 | 76102 | **38809** | **114911** |

---

(i)May not add due to rounding

(ii)Other includes technical work not associated with an above property

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![image_1a.jpg](image_1a.jpg)

**Other Income and Expense**

<br> ---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended<br>December 31,** | **Three months ended<br>December 31,** | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
|<br>*(in thousands of U.S. dollars)* | **2022** | **2021** | **2022** | **2021** |
| Gain / (loss) on warrants | **(10788)** | 583 | **(1040)** | (2515) |
| Loss on fair value measurement of convertible loans derivative | **(19000)** | (6097) | **(9899)** | (6097) |
| Loss on deferred consideration | **(821)** | (649) | **(3262)** | (649) |
| Gain / (loss) on foreign exchange | **44** | 930 | **(404)** | (122) |
| Gain / (loss) on investments | **872** | 696 | **(295)** | 696 |
| Gain on sales from Gold Prepay Agreement | **454** |  | **1596** |  |
| Gain / (loss) on fair value measurement of Gold Prepay derivative | **(4205)** |  | **2916** |  |
| Gain / (loss) on fair value measurement of Silver Purchase derivative | **(9523)** |  | **1898** |  |
| Gain on asset exchange | **—** | 135531 | **—** | 135531 |
| Other | **(729)** | 50 | **(3193)** | 98 |
| **Total other income / (expense)** | **(43696)** | 131044 | **(11683)** | 126942 |

---

**Other expense** for the three-month period December 31, 2022, was $43.7 million compared to other income of $131.0 million for the three-month period December 31, 2021, resulting in a decrease of $174.7 million due to the one time non-cash gain on the asset exchange with NGM in 2021 of $135.5 million, along with a loss on the fair value of warrants, a loss related to the embedded derivatives on the gold prepay and silver purchase agreements and a loss related to the embedded derivatives within the convertible loans. The loss on the fair value of warrants was driven by a increase in the Company's share price at the comparable end-of-period dates. The loss on the embedded derivatives related to the gold prepay and silver purchase agreements was driven by the increase in gold and silver forward prices at the comparable end-of-period dates. The loss on the embedded derivatives on the convertible loans is driven mainly by an increase in the Company's share price at December 31, 2022 compared to the September 30, 2022.

Other expense for the year ended December 31, 2022, was $11.7 million compared to other income of $126.9 million for year ended December 31, 2021, resulting in a decrease of $138.6 million. Same as in the three-month period ended December 31, 2022, a decrease of $135.5 million over the comparable period of 2021 was due to the one time non-cash gain on the asset exchange with NGM. The decrease during the period was also impacted by a loss related to the embedded derivatives within the convertible loans, a loss on the deferred consideration related to the acquisition of Ruby Hill, and a loss related to the equity investment in Paycore, partially offset by a gain related to the embedded derivatives on the gold prepay and silver purchase agreements. The loss on the fair value of warrants and the loss on the embedded derivatives within the convertible loans was driven by a increase in the Company's share price at December 31, 2022, as compared to December 31, 2021 . The gain on the embedded derivatives related to the gold prepay and silver purchase agreements was due to a decrease in gold and silver forward prices from inception of the agreements in April 2022 to December 31, 2022 . The loss on the equity investment was driven by a decrease in the share price of Paycore, and the loss on the deferred consideration was driven mainly by an increase in the present value of the discounted milestone payments from the Ruby Hill acquisition.

**Interest and Finance Expense**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended<br>December 31,** | **Three months ended<br>December 31,** | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
|<br>*(in thousands of U.S. dollars)* | **2022** | **2021** | **2022** | **2021** |
| Interest accretion on convertible loans | **1954** | 262 | **7695** | 262 |
| Interest accretion on Gold Prepay Agreement | **2204** |  | **6720** |  |
| Interest accretion on Silver Purchase Agreement | **954** |  | **2692** |  |
| Amortization of finance costs | **82** |  | **353** |  |
| Environmental rehabilitation accretion | **750** | 268 | **3001** | 307 |
| Interest paid | **10** | 7 | **27** | 76 |
| Related party interest expense | **—** |  | **—** | 1177 |
| **Total interest and finance expense** | **5954** | **537** | **20488** | **1822** |

---

**Interest and finance expense** for the three months ended December 31, 2022, of $6.0 million increased $5.4 million compared to the three month period ended December 31, 2021, primarily from interest accretion on convertible loans of $1.7 million, interest accretion on gold prepay and silver purchase agreements of $3.2 million and increased accretion on environmental rehabilitation of $0.5 million mainly due to the long-term risk-free rate update.

------

![image_1a.jpg](image_1a.jpg)

Interest and finance expense for the year ended ended December 31, 2022, of $20.5 million increased $18.6 million over the year ended ended December 31, 2021 primarily due to the interest accretion on convertible loans of $7.4 million, interest accretion on gold prepay and silver purchase agreements of $9.4 million and increased accretion on environmental rehabilitation of $2.7 million due to the long-term risk-free rate update mentioned previously, partially offset by a decrease in related party interest expense of $1.2 million. Related party interest expense for the year ended December 31, 2021, results from interest paid on an intercompany note held by Premier related to the purchase of the Company's interest in South Arturo, which was paid in full during April 2021, and interest paid to Equinox Gold for the bridge loan further described in Note 1(a) of the Company's Financial Statements.

**Current and Deferred Taxes - Continuing Operations**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended<br>December 31,** | **Three months ended<br>December 31,** | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
|<br>*(in thousands of U.S. dollars)* | **2022** | **2021** | **2022** | **2021** |
| Income (loss) before income taxes | **(67177)** | 121634 | **(91030)** | 96673 |
| Current tax (expense) | **—** |  | **—** | (200) |
| Deferred tax recovery | **3239** | (19853) | **11833** | (19853) |
| **Income / (loss) for the period from continued operations** | **(63938)** | **101781** | **(79197)** | **76620** |

---

Current and deferred taxes are comprised of taxes on income. For the three and twelve months ended December 31, 2022, current and deferred tax recovery of $3.2 million and $11.8 million, respectively, increased from an expense of $19.9 and $20.1 million for the three and twelve month periods of 2021 due to an increase in deferred tax recovery.

**FINANCIAL POSITION**

**Balance Sheet Review** 

*Assets*

Cash and cash equivalents decreased from $87.7 million to $48.3 million over the twelve month period ended December 31, 2022, primarily as a result of the operating activities from exploration and pre-development costs at Granite Creek and Ruby Hill, capital expenditures at Granite Creek and Lone Tree, the exploration ramp at McCoy-Cove, corporate general and administrative expenditures, and the property acquisitions at Granite Creek and the Argenta project, offset by net funds received from the gold prepay and silver purchase agreements of $41.7 million and $29.9 million, respectively, and gold and silver sales of $37.0 million.

Current and long-term receivables decreased $1.2 million mainly due to the recovery of the Alternative Minimum Tax ("AMT") receivable during the third quarter of 2022.

Inventory decreased from $26.0 million to $16.5 million during the year ended December 31, 2022 and represents the value associated with residual heap leaching operations at Lone Tree and Ruby Hill, the work in process doré and refined gold from the mentioned sites, and the ore stockpiles and heap leach from Granite Creek. During Q4 2022, the Company recognized an inventory impairment of $6.5 million. The impairment was recorded to reduce the inventories to net realizable value.

Property, plant and equipment increased $26.6 million during the twelve month period of 2022 with a primary focus on the capital investment for pre-development work, value rights and properties acquisitions at Granite Creek, the exploration ramp at McCoy-Cove, the engineering and design work on the autoclave at Lone Tree, and the acquisition of the Argenta property.

Restricted cash and cash equivalents increased from $30.8 million to $32.9 million during the year ended December 31, 2022, due to additional collateral deposited on outstanding reclamation bonds.

Total other assets increased $6.1 million mainly due to the embedded derivatives in relation to the gold prepay and silver purchase agreements totaling $2.9 million and $1.9 million, respectively, and other assets acquired from the Argenta acquisition of $1.8 million. This amount was partially offset by a decrease of $0.5 million non-cash market price adjustment of the equity investment in Paycore.

*Liabilities*

Accounts payable and accrued liabilities increased from a total of $14.0 million at December 31, 2021 to a total of $17.2 million at December 31, 2022 mainly due to an increase in operating activities at Granite Creek, and exploration-related activities at McCoy Cove and Buffalo Mountain, and normal course of the accounts payable cycle.

Current and non-current portion of long-term debt increased $21.2 million and $53.2 million, respectively, mainly due to the liability related to the gold prepay and silver purchase agreements, and the interest accretion on convertible loans.

Total other liabilities increased $14.6 million primarily due to the fair value increase on the embedded derivatives related to the convertible loans and the deferred consideration.

Total provision for environmental rehabilitation decreased $21.2 million mainly due to the new assessment of the fair value of the remediation estimates perform during the fourth quarter of 2022. The decrease is largely due to deferring closure costs to align with the Company's operating plans and changes in the discount rates which resulted in a reduction of the liability.

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![image_1a.jpg](image_1a.jpg)

**Working Capital**

Working capital, as of December 31, 2022 was $(8.3) million compared to $91.6 million as of December 31, 2021, decreased primarily due to a decrease of $39.4 million in cash and cash equivalents, a decrease of $9.5 million in inventory, an increase of $3.6 million in current portion of other assets, an increase of $3.2 million in accounts payable and accrued liabilities, an increase of $21.2 million in current portion of long term debt and an increase of $30.4 million in current portion of other liabilities.

As mentioned in the recent financing section above, on February 2023, the Company closed a private placement offering of $65 million principal amount of Convertible Debentures. Proceeds will be used to fund the Company's everyday operations, exploration and development, surety or bonding relating mine closure, asset retirement and environmental reclamation obligations of the Company's material mineral projects.

**Cash Flow**

For the year ended December 31, 2022, the Company had cash and cash equivalents of $48.3 million compared to $87.7 million as of December 31, 2021.

Cash used in continuing operating activities for the three and twelve months ended December 31, 2022, was $4.9 million and $45.8 million, respectively, compared to cash used in operating activities in the same periods of 2021 of $7.4 million and $22.6 million, respectively. The decrease in cash used in operating activities from continuing operations over the three month period of 2022 as compared to the three month period of 2021 resulted primarily from gold and silver sales collections, partially offset by an increase in exploration, evaluation and pre-development costs, and general and administrative expenses. The increase in cash used in operating activities from continuing operations over the twelve month period of 2022 was driven mainly by an increase in exploration, evaluation and pre-development costs, general and administrative expenses and property maintenance costs as compared to the same period of 2021.

Cash provided by operating activities from discontinued operations for the twelve months ended December 31, 2022 was nil compared to $9.5 million for the comparable period of 2021 due to cash flow from the discontinued South Arturo operations in 2021.

Cash used in investing activities from continuing operations for the three and twelve months ended December 31, 2022 was $19.2 million and $54.7 million compared to $106.5 million and $131.4 million for the three and twelve months ended December 31, 2021, respectively. The decrease in the three and twelve month periods of 2022 was primarily due to acquisitions of the Granite Creek and Ruby Hill properties and collateral deposited on outstanding reclamation bonds in 2021, partially offset by payments made in 2022 of the contingent consideration to Waterton and NGM for the Granite Creek property, the engineering and design work on the autoclave at Lone Tree, capital investment in the development at McCoy-Cove and Granite Creek, and the acquisition of the Argenta property package.

Cash used in financing activities from continuing operations for the three months ended December 31, 2022, was $3.6 million compared to cash provided by financing activities from continuing operations in the same period of 2021 of $149.1 million. Cash used in financing activities from continuing operations for the three months ended December 31, 2022 was primarily due to repayments on the Gold Prepay agreement. Cash provided by financing activities for the three months ended December 31, 2021, was mainly by proceeds from Orion and Sprott convertible loans ($58.6 million) and private placements ($91.4 million). Cash provided by financing activities from continuing operations for the twelve months ended December 31, 2022, was $61.4 million compared to cash provided by financing activities from continuing operations of $222.9 million for the comparable period of 2021. Cash provided by financing activities from continuing operations for the twelve month period ended December 31, 2022 was mainly driven by proceeds from the Gold Prepay and Silver Purchase agreements ($71.6 million), partially offset by repayments on the Gold Prepay agreement ($12.9 million). Cash provided by financing activities from continuing operations for the twelve month period ended December 31, 2021 was primarily from net proceeds received from

shares issued in equity financings ($63.7 million), private placements ($103.1 million) and convertible loans ($58.6 million).

**Liquidity and Capital Resources**

**Liquidity Outlook** 

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| | | |
|:---|:---|:---|
| For the period ended | For the period ended | For the period ended |
| *(in thousands of U.S. dollars)* | **December 31, 2022** | **December 31, 2021** |
| Cash and cash equivalents | **48276** | 87658 |
| Working capital | **(8339)** | 91577 |

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The Company funds current exploration, evaluation, and pre-development expenditures through its cash flow from recent equity and financing completed in the fourth quarter of 2021, and the gold prepay and silver purchase agreements funded in April 2022. With the completion of the private placement offering of $65 million from February 2023, and the cash expected to be generated from the gold and silver sales, the Company anticipates that it will have sufficient funds to meet its obligations and to finance continued exploration and development activities for the next 12 months.

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**Equity**

At December 31, 2022, the authorized share capital consisted of an unlimited number of common shares without par value, of which 240,561,017 shares were outstanding. Between December 31, 2022 and the date of this MD&A, there were 327,763 shares issued for stock options exercised. As of the date of this MD&A, there are 246,754,094 shares outstanding. In addition, as of December 31, 2022, the Company had 17,561,152 warrants, and 7,878,746 stock options outstanding. Subsequent to the year ended December 31, 2022, 1,888,683 stock options were granted.

The Company has outstanding the Orion Convertible Credit Agreement dated December 13, 2021, between the Company, Premier USA, Osgood Mining Company, LLC, Ruby Hill Mining Company, LLC and OMF Fund III (F) Ltd. in the principal amount of $50 million (the "Orion Convertible Loan"). The Orion Convertible Loan bears interest at a rate of 8.0% per annum and matures on December 13, 2025 and has a conversion price of C$3.275. The Canadian dollar equivalent of the $50 million principal of the Orion Convertible Loan was deemed to be C$63.5 million (as determined in accordance with the Orion Convertible Credit Agreement) An aggregate of 19,389,313 Common Shares have been reserved for issuance in connection with the full conversion of the initial principal amount of the Orion Convertible Loan.

The Company has outstanding the Sprott Convertible Credit Agreement dated December 10, 2021, between the Company, Premier USA, Osgood Mining Company, LLC, Ruby Hill Mining Company, LLC, Sprott Hathaway Special Situations Fund Master Fund LP, as administrative agent, SAF Sub Holdings, LLC and SAF Bullion Sub, LLC, in the principal amount of $10 million (the "Sprott Convertible Loan"). The Sprott Convertible Loan bears interest at a rate of 8.0% per annum and matures on December 9, 2025 and has a conversion price of C$3.275. The Canadian dollar equivalent of the $10 million principal of the Sprott Convertible Loan was deemed to be C$12.64 million (as determined in accordance with the Sprott Convertible Credit Agreement). An aggregate of 3,860,152 Common Shares have been reserved for issuance in connection with the full conversion of the initial principal amount of the Sprott Convertible Loan.

On February 22, 2023, the Company entered into an agreement with Co-Lead Agents in connection with a "best efforts" private placement offering of $65 million principal amount of secured convertible debentures. The Convertible Debentures will bear a fixed interest of 8.00% per annum and will mature on the date that is four years from the offering closing date (the "Maturity Date"). The principal amount of the Convertible Debentures may be converted into common shares of the Company at a conversion price of $3.38 per share. The Company shall have the option but not the obligation to pay interest in common shares at its own discretion, subject to the approval of the TSX. If the Company decides to pay interest in common shares, then it will be priced at the greater of (i) 90% of the average closing price of the Company's common shares as measured in U.S. dollars on the NYSE American exchange during the ten business days leading up to the interest payment, or (ii) the lowest price permitted by the TSX. At any time, and from time to time, until the earlier of the business day preceding the Maturity Date and the date of repayment in full of the principal amount of the Convertible Debentures and all accrued and unpaid interest thereon, each purchaser may at its option elect to convert all or any portion of the principal amount owing to such purchaser, into Common Shares at the conversion price. If at any time the daily volume weighted average of the Company's common shares as measured in U.S. dollars on the NYSE American exchange equals or exceeds 150% of the conversion price per share for 20 consecutive trading days commencing 120 days after the closing date, the Company shall have the right within three trading days after such trading period to have all of the principal amount outstanding under the Convertible Debentures converted into common shares at the Conversion price.

**Share Capital Issued**

On April 7, 2021, just prior to the completion of the Arrangement, the Company issued 137,624,461 common shares to Premier for the transfer of its investment in Premier USA to the Company for the carrying amount of investment, $150.6 million offset by $4.4 million allocated to the equity settled employee benefits reserve for replacement options, $0.9 million for the transfer of the South Arturo silver stream, and $0.5 million for replacement warrants issued pursuant to the arrangement.

On April 7, 2021, the Company issued 30,914,614 common shares at a price of C$2.60 per share completing the private placement discussed in Note 1(a) of the Financial Statements. A cash commission was paid equal to 5.25% of the gross proceeds, other than (i) on proceeds from the sale of shares to Orion Mine Finance Group and any directors or officers of the Company or Premier for which the commission was reduced to 2.5% of the gross proceeds received and (ii) on proceeds from the sale of shares to Equinox Gold, for which no commission was paid.

On April 14, 2021, the Company issued 13,036,846 common shares at a price of C$2.60 per common share for total gross proceeds of $27.0 million (C$33.9 million) as part of the consideration on the Granite Creek acquisition.

On May 10, 2021, the Company issued 2,430,488 common shares at a price of C$2.50 per common share for total gross proceeds of $5.0 million (C$6.1 million) as part of the consideration on the acquisition of the Christison properties.

On May 26, 2021, the Company issued 5,479,536 common shares at a price of C$2.60 per common share for aggregate gross proceeds of $11.8 million (C$14.2 million) in satisfaction of an anti-dilution right of Equinox Gold contemplated in the Agreement and immediately prior to the closing of the Christison Acquisition.

On October 14, 2021, the Company issued 39,041,515 common shares at a price of C$2.62 per common share for aggregate gross proceeds of approximately C$102.3 million ($81.4 million) in connection with the closing of a non-brokered private placement.

On October 18, 2021, the Company issued 3,191,358 common shares to Waterton as partial consideration for the acquisition of Ruby Hill of $8.0 million.

On October 21, 2021, in connection with the Asset Exchange, the Company and Orion agreed that the $1.75 million transfer fee payable on the disposition of the Company's interest in South Arturo under the offtake agreement with Orion would be satisfied by the issuance of 839,799 common shares of the Company at a price of C$2.62 per common share. On October 21, 2021, the Company issued 839,799 Common Shares to Orion in satisfaction of the Project Transfer Fee.

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On December 9, 2021, the Company issued 4,800,000 common shares at a price of C$2.62 for gross proceeds of $10.0 million to Equinox Gold in satisfaction of an anti-dilution right within the Agreement.

On January 31, 2022, in connection with the Arrangement, the Company issued 800,000 shares for share purchase warrants that were exercised in settlement of the warrant liability that was assumed for 40% of 2 million Premier warrants that were outstanding with Orion Mine Finance on the date the Arrangement.

During the year ended December 31, 2022, the Company has issued 1,047,200 shares for stock options exercised. During the fourth quarter 2022, there were 192,400 shares issued for stock options exercised.

Subsequent to the year ended December 31, 2022, 1,888,683 stock options were granted.

**Share Purchase Warrants**

In connection with the subscription receipts discussed in Note 1 of the Financial Statements, the Company issued 7,728,654 Common Share Purchase Warrants ("warrants") which are exercisable into one fully paid and non-assessable common share of the Company at an exercise price of C$3.64 per share. These warrants expired on October 7, 2022 and were not exercised. The warrants included a four month hold period, and the initial fair value of the warrants recognized on inception was $2.9 million.

In connection with the Arrangement, the Company assumed a warrant liability for 40% of 2 million Premier warrants that were outstanding with Orion Mine Finance on the date the Arrangement. The warrants were set to expire January 31, 2022, however, these warrants were exercised in full prior to the expiration date and the Company issued 800,000 shares in settlement. The liability has been recorded as a reduction in the equity issued on the spin-out of Premier USA to the Company. The initial fair value of the replacement warrants recognized on inception was $0.5 million.

In connection with the acquisition of Osgood as further described in Note 1(b) of the Financial Statements, the Company issued 12,071,152 warrants which are exercisable into one fully paid and non-assessable common share of the Company at an exercise price of C$3.64 per share until April 14, 2024. The warrants included a four month hold period, and the initial fair value of the warrants recognized on inception was $6.0 million.

In connection with the Finance Package as further described in Note 1(d) of the Financial Statements, the Company issued 5.5 million common share warrants exercisable at C$3.275 per share with an exercise period of 36 months or until December 13, 2024. The fair value of the warrants at inception and at December 31, 2021 was $3.5 million.

The warrants are considered derivatives because their exercise price is in CAD whereas the Company's functional currency is in USD. Accordingly, the Company recognizes the warrants as liabilities at fair value with changes in fair value recognized in profit or loss. For the year ended December 31, 2022, the Company recognized a decrease in the estimated fair value of the liability of $0.5 million.

**Stock Option Plan**

The Company has a share option plan (the "Plan") which is restricted to directors, officers, key employees and consultants of the Company. The number of common shares subject to options granted under the Plan (and under all other management options and employee stock purchase plans) is limited to 10% in the aggregate and 1% with respect to any one optionee of the number of issued and outstanding common shares of the Company at the date of the grant of the option. Options issued under the Plan may be exercised during a period determined by the Company's Board of Directors which cannot exceed ten years.

**Restricted Share Unit Plan** 

The Company adopted the Restricted Share Unit ("RSU") plan to allow i-80's Board of Directors to grant its employees non-transferable share units based on the value of the Company's share price at the date of grant. The awards have a graded vesting schedule over a three-year period. Under the RSU plan, the awards can be equity or cash settled immediately upon vesting. As of December 31, 2022, there were 465,642 RSU's outstanding. Subsequent to the year ended December 31, 2022, and as of the date of this MD&A, 731,544 RSU's were granted.

**Deferred Share Unit Plan** 

The Company adopted the Deferred Share Unit ("DSU") plan to grant non-transferable share units to eligible members of the Board of Directors, eligible employees and eligible contractors. The DSU's are priced based on the value of the Company's share price at the date of grant. The awards have a graded vesting schedule over a three year period. Under the DSU plan, the awards can be equity or cash settled immediately upon vesting. As of December 31, 2022, there were 175,091 DSU's outstanding. Subsequent to the year ended December 31, 2022, and as of the date of this MD&A, 110,919 DSU's were granted.

**RELATED PARTY TRANSACTIONS**

Related parties include key management personnel and entities which have control or significant influence as described in Note 2(b) of the Company's Financial Statements. Related party transactions included in the Financial Statements are with Premier, the former parent company, and with Equinox Gold.

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The following are related party transactions, recorded at the exchange amount as agreed to by the parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Company recognized revenue of $32.0 million for the year ended December 31, 2021 from the sale of gold and silver under the transfer pricing agreement with Premier. The transfer pricing agreement with Premier was terminated on closing of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Included in related party interest expense is interest accrued on an intercompany loan payable to Premier in the amount of $1.2 million for the year ended December 31, 2021. The intercompany note was settled on closing of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Included in finance expense is interest paid to Equinox Gold of $0.06 million for the year ended December 31, 2021 for the bridge loan further described in Note 10(vi) of the Company's Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Included in the statement of cash flows for the year ended December 31, 2021, is the proceeds from Equinox Gold and the subsequent repayment to Equinox Gold for the $20.75 million bridge loan further described in Note 1(a) of the Company's Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Included in operating expenses is share-based payments of $0.6 million for the year ended December 31, 2021. The share-based payments are for allocation of expenses from Premier. The corresponding share-based payment liability previously recorded in Premier USA, was settled on closing of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Included in operating expenses is transition services costs of $0.1 million to Equinox Gold for the year ended December 31, 2022 ($0.2 million for the the year ended December 31, 2021). The transition services costs are for general and administrative services provided by Equinox Gold to the Company's head office in Reno, Nevada. The transition services agreement was terminated March 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)In April 2021, the Company modified a portion of its intercompany note payable to Premier to change the repayment currency from CAD to USD. This modification resulted in the extinguishment of the original intercompany note and recognition of a new intercompany note, with the difference of $8.8 million recorded directly into surplus / (deficit).

**COMMITMENTS AND CONTINGENCIES**

**Environmental Rehabilitation Provision**

The Company currently has five active environmental rehabilitation obligations related to past and current mining activities. As per the table below, the provisions for each property are updated regularly for changes to projected inflation rates, the risk-free discount rate, accretion, and currency adjustments if applicable. Changes in cost estimates to perform the environmental rehabilitation work at each property are applied where an engineering assessment of the project has been completed**.** 

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| | | |
|:---|:---|:---|
| **For the period ended** | **For the period ended** | **For the period ended** |
| *(in thousands of U.S. dollars)* <sup>(i)</sup> | **December 31, 2022** | **December 31, 2021** |
| Granite Creek | **1473** | 2394 |
| Lone Tree | **48898** | 60592 |
| Ruby Hill | **13273** | 23179 |
| McCoy-Cove | **6812** | 6684 |
| Argenta | **1170** |  |
| **Total** | **71626** | 92849 |

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*Granite Creek*

This project has a current remediation plan of 10 years after the current approximate life of mine of the project of 11 years. There are no expenditures projected in the next few years. Management conducted an environmental assessment of the property during 2022 and updated the estimated environmental obligation as part of its normal year-end review. The estimated remediation costs includes closure of all permitted mining and exploration disturbance at the property.

*Lone Tree*

The assets at Lone Tree include an autoclave and flotation mill, which are currently not operating. There are reclamation activities ongoing at Lone Tree related to the treatment of the pit lake; during the year of 2022, reagents were added periodically to maintain a neutral pH. The Company spent $0.6 million towards treatment and management of the Lone Tree Pit Lake. As of December 31, 2022, Management estimates the environmental rehabilitation obligation at Lone Tree at $48.9 million after inflation and present value discounting. This amount is based on cost estimates from an environmental assessment of the property conducted during 2022 and includes closure of all permitted mining and exploration disturbance at the property.

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*Ruby Hill*

As of December 31, 2022, Management estimates the environmental rehabilitation obligation at $13.3 million after inflation and present value discounting. This amount includes the closure of all permitted mining and exploration disturbance and is calculated using standardized reclamation cost estimators. Management conducted an environmental assessment of the property during 2022 and updated the estimated environmental obligation as part of its normal year-end review.

*McCoy-Cove*

The Company is responsible for all environmental liabilities related to the closure of the McCoy-Cove Property as well as final clean-up of surface drill pads and minor drill roads. The McCoy-Cove reclamation obligation is in part related to the McCoy portion of the property purchased from Newmont Mining Corporation in 2014. All closure activities other than reclamation of three water treatment ponds, evaporation of the tailings facility and water quality testing have been temporarily put on hold pending the potential for future production out of the Cove underground. The property had a remaining obligation from previous mining activities, most of which was completed prior to acquiring the property. Structural reclamation is on hold for several years pending a new mine plan for the property. The other portion is related to the Cove underground project which will not commence reclamation for several years, and was impacted by accretion and an updated risk-free discount rate. Management conducted an environmental assessment of the property during 2022 and updated the estimated environmental obligation as part of its normal year-end review, the estimated environmental rehabilitation obligation sits at $6.8 million after inflation and present value discounting.

*Argenta*

This recently acquired project includes barite processing facilities and associated infrastructure, which are currently not operating. The Argenta mine and mill complex has a current remediation plan of 5 years. The estimated remediation costs includes procedures in order to reclaim any land disturbed during mine development, construction and operations of the site done prior acquisition by the Company.

**Surety Bonds**

At December 31, 2022, the Company has outstanding surety bonds in the amount of $126.1 million in favor of either the United States Department of the Interior, Bureau of Land Management ("BLM"), or the State of Nevada, Department of Conservation & Natural Resources as financial support for environmental reclamation and exploration permitting. This includes surety bonds for the Lone Tree project and the Ruby Hill property in the amounts of $87.0 million and $22.8 million, respectively. The surety bonds are secured by a $32.9 million deposit and are subject to fees competitively determined in the marketplace. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As specific requirements are met, the BLM and State of Nevada as beneficiary of the instruments, will return the instruments to the issuing entity. As these instruments are associated with operating sites with long-lived assets, they will remain outstanding until closure.

**Option Agreements**

*Tabor Exploration and Option Agreement*

On August 24, 2020, the Company through its wholly owned subsidiary Au-Reka entered into an option agreement with Renaissance Exploration, Inc. to acquire a 100% interest in the Tabor Project located in Esmeralda County, Nevada. The option agreement is subject to a firm commitment to spend $0.3 million towards exploration activities by the one-year anniversary date that the Company acquires an exploration permit on the property plus initial earn-in option payments of $5.2 million.

**Changes to Other Agreements**

In connection with the closing of the Arrangement on April 7, 2021, the offtake, gold prepay and silver stream agreements were amended to exclude certain parties and projects that were included in the original agreements.

The Second Amended and Restated Offtake Agreement entered into with OMF Fund II (O) Ltd. (formerly OMF Fund II SO Ltd.) was replaced with a new Offtake Agreement with i-80 Gold ("New Offtake Agreement") covering the Company's projects, including Osgood Mining Company, LLC. Under the terms of the New Offtake Agreement, the Annual Gold Quantity means (i) an aggregate of 29,750 ounces of refined gold for 2021, and (ii) up to an aggregate of 31,500 ounces of refined gold annually each year. The New Offtake Agreement ends on March 1, 2027.

The Amended and Restated Silver Stream Agreement was replaced with a new South Arturo Purchase and Sale Agreement (Silver) between i-80 Gold and OMF Fund II SO Ltd. with amended terms. Agreement was included in the net asset value in connection with the asset exchange with NGM, and therefore no longer on the balance sheet as of December 31, 2021.

As part of the Finance Package the Company entered on December 13, 2021 there was an amendment to the offtake agreement entered into with affiliates of Orion. The main amendments reflected in the A&R Offtake Agreement include the increase in the term of the agreement to December 31, 2028, the inclusion of the Ruby Hill and Granite Creek projects, and the increase of the annual gold quantity to up to an aggregate of 37,500 ounces in respect of the 2022 and 2023 calendar years and up to an aggregate of 40,000 ounces in any calendar year after 2023.

**Off Balance Sheet Arrangements**

The Company has no off-balance sheet or income statement arrangements other than the surety bonds discussed above.

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**CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES, POLICIES AND CHANGES**

**Significant Accounting Judgements and Estimates**

The preparation of the Consolidated Financial Statements in accordance with IFRS requires management to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities, disclosure of commitments and contingent liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of judgement based on various assumptions and other factors such as historical experience, current and expected economic conditions. Actual results could differ from these estimates.

The significant judgments and estimates used in the preparation of the Consolidated Financial Statements that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities and earnings within the next financial year include:

*Osgood Mining Company LLC Acquisition*

With regard to the acquisition of Osgood, management followed the guidance within IFRS 3 – Business Combinations and determined that the transaction should be accounted for as an asset acquisition. In such cases, the acquirer identifies and recognizes the individual identifiable assets acquired and liabilities assumed. The cost of the group is allocated to the individual identifiable assets and liabilities on the basis of their relative fair values at the date of purchase. Such a transaction or event will not give rise to recording goodwill.

The Osgood transaction was recorded based on the total consideration paid for the assets. Total consideration paid in excess of the acquired assets' book values represented the fair value of the net assets acquired and was attributable to the acquired mineral interests.

For contingent consideration and payments, an accounting policy choice exists, and an entity may recognize a liability for the expected variable payments at the time control of the underlying asset is obtained or they may only recognize such a liability as the related activity that gives rise to the variability occurs. For the Osgood acquisition, management has not recognized any liability for contingent payments as the performance conditions required for these payments had not been met as of the date the assets were acquired.

*Acquisition of Ruby Hill*

The acquisition of Ruby Hill was assessed by management under the guidance of IFRS 3 – Business Combinations, management determined that they acquired a business and therefore accounted for the acquisition as a business combination under this standard. The fair value of assets acquired and liabilities assumed in this business combination, including deferred consideration, was estimated based on information available at the date of acquisition. Various valuation techniques were applied for measuring fair value including market comparables and discounted cash flows which rely on assumptions such as forward commodity prices, quantity of mineral resources, mining and processing costs and discount rates. Changes in these variables could significantly impact the carrying value of the net assets.

Deferred consideration related to Ruby Hill is recognized as a financial liability at FVPL. In determining fair value on acquisition and at each reporting period, management judgement was required in respect to input variables of the financial model used for estimation purposes. These variables include management's best estimate that the early prepayment options will be exercised for all milestone payments and a discount rate that reflects the risk associated with the payment of contingent consideration.

*Asset Exchange with Nevada Gold Mines LLC*

The Asset Exchange with Nevada Gold Mines LLC was assessed by management under the guidance of IFRS 3 – Business Combinations. Management determined the assets acquired in this transaction did not meet the definition of a business and therefore accounted for the acquisition as an asset acquisition. As the consideration for this transaction was largely the South Arturo operations, the fair value of consideration given could not be measured as reliably as the fair value of the assets acquired and so management took the approach of valuing the assets acquired at fair value instead of the consideration paid, The fair value of assets acquired and liabilities assumed in this asset acquisition, was estimated based on information available at the date of acquisition. Various valuation techniques were applied for measuring fair value including market comparables and discounted cash flows which rely on assumptions such as forward commodity prices, quantity of mineral resources, mining and processing costs and discount rates. Changes in these variables could significantly impact the carrying value of the net assets. A gain was recognized on this transaction, which reflected the difference between the carrying value of the non-cash consideration and its fair value.

*Assets held for sale and discontinued operations*

Significant judgement was required in the application of IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations ("IFRS 5") regarding the Company's 40% interest in the South Arturo asset classification as assets held for sale and classification as a discontinued operation.

In October, 2021, the Company announced that it had entered into a definitive agreement with Nevada Gold Mines ("NGM") whereby the Company acquired the Lone Tree and Buffalo Mountain gold deposits in exchange for (among other consideration) the Company's 40% interest in the South Arturo property. Management determined that the South Arturo asset should be classified as a discontinued operation in the Consolidated Financial Statements.

*Provisions for environmental rehabilitation*

Management assesses the provisions for environmental rehabilitation on acquisition, on an annual basis or when new information becomes available. This assessment includes the estimation of the future rehabilitation costs required based on the existing laws and regulations in each jurisdiction the Company operates in, the timing of these expenditures, and the impact of changes in the discount rate. The actual future expenditures may differ from the amount currently provided if the estimates made are significantly different than actual results or if there are significant changes in environmental and / or regulatory requirements in the future.

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*Valuation of financial instruments*

The Company issued warrants as further described in Note 1 and Note 12(i) of the Financial Statements. The warrants are considered derivatives because their exercise price is in C$ whereas the Company's functional currency is in USD. Accordingly, the Company recognizes the warrants as liabilities at fair value with changes in fair value recognized in profit or loss. In determining fair value, management judgement is required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as the Company's share price, share price variability, trading volumes and risk-free rates of return. The fair value of the warrants recognized on inception were calculated using Premier's share price volatility and at December 31, 2022, and December 31, 2021, using i-80 Gold's share price volatility.

The financing instruments described in Note 1(d) of the Financial Statements were valued by simulating the relevant prices of the underlying assets; gold, silver and the Common Shares, from December 9 or 13, 2021, to their respective maturity dates of each financial instrument, using LongstaffSchwartx MonteCarlo simulation, assuming they follow correlated Geometric Brownian Motion and modeling the payoffs of each financial instrument in the Financing Package. The derivatives (including embedded) were fair valued with the residual balance being allocated to the host contracts. The derivatives (including embedded) will continue to be recognized at FVPL whilst the host contracts are at amortized cost.

The conversion and change of control rights contained in the Convertible Loans are recognized as derivative liabilities and separately measured at FVPL each reporting period. In determining the fair value at each reporting period, management judgement is required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as managements estimate of the probability and date of a change of control event, the Company's share price, share price variability, credit spreads, and interest rates.

The Gold Prepay Agreement is recognized as a financial liability at amortized cost and it contains an embedded derivative in relation to the embedded gold price within the agreement that is measured at FVPL each reporting period. In determining the fair value of the embedded derivative at each reporting period, management judgement is required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as metal prices, metal price volatility, and risk free borrowing rates.

The Silver Purchase Agreement is recognized as a financial liability at amortized cost and it contains two embedded derivatives; one in relation to the embedded silver price within the agreement and the other in relation to the gold substitution option whereby i-80 Gold can choose to deliver gold instead of silver at a ratio of 75:1, both are measured at FVPL each reporting period. In determining the fair value of the embedded derivatives at each reporting period, management judgement is required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as metal prices, metal price volatility, risk free borrowing rates and the Company's production profile.

The South Arturo Stream Agreement is recognized as a financial liability at FVPL. In determining the fair value of the Stream Agreement management judgement was required in respect to input variables of the financial model used for estimation purposes. These variables include such inputs as the Company's production profile, credit spread, and metal prices. Using the inputs above the Company used a discounted cash flow analysis to determine the present value of the financial liability.

*Valuation of Inventories*

Finished goods, work-in-process, heap leach ore and stockpile ore are valued at the lower of cost and NRV. The assumptions used in the valuation of work-in-process inventories include estimates of gold contained in the ore stacked on leach pads, assumptions of the amount of gold stacked that is expected to be recovered from the leach pads, and the amount of gold in the mill circuits. The determination of NRV involves the use of estimates. The NRV of inventories is calculated as the estimated price at the time of eventual sale based on prevailing and forecast metals prices less estimated future costs to convert the inventories into saleable form and associated selling costs. The NRV of inventories is assessed at the end of each reporting period. Changes in estimates of NRV may result in a write-down of inventories or the reversal of a previous write-down.

*Recoverable ounces*

The carrying amounts of the Company's mining property is depleted based on recoverable ounces contained in proven and probable mineral reserves. Changes to estimates of recoverable ounces and depletable costs including changes resulting from revisions to mine plans and changes in metal price forecasts can result in a change in future depletion rates.

The figures for mineral reserves and mineral resources are determined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects, issued by the Canadian Securities Administrators. This National Instrument lays out the standards of disclosure for mineral projects including rules relating to the determination of mineral reserves and mineral resources. There are numerous uncertainties inherent in estimating mineral reserves and mineral resources, including many factors beyond the Company's control. Such estimation is a subjective process, and the accuracy of any mineral reserve or mineral resource estimate is a function of the quantity and quality of available data and of the assumptions made and judgements used in engineering and geological interpretation. Differences between management's assumptions, and actual events including economic assumptions such as metal prices and market conditions, could have a material effect in the future on the Company's financial position and results of operation.

*Impairment and reversal of impairment for non-current assets*

Non-current assets are tested for impairment at the end of each reporting period if in management's judgement there is an indicator of impairment. If there are indicators, management performs an impairment test on the major assets within this balance.

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In the case of mineral property assets, recoverability is dependent on a number of factors common to the natural resource sector. These include the extent to which the Company can continue to renew its exploration and future development licenses with local or other authorities, establish economically recoverable reserves on its properties, the availability of the Company to obtain necessary financing to complete the development of such reserves and future profitable production or proceeds from the disposition thereof. The Company will use the evaluation work of professional geologists, geophysicists and engineers for estimates in determining whether to commence or continue mining and processing. These estimates generally rely on scientific and economic assumptions, which in some instances may not be correct, and could result in the expenditure of substantial amounts of money on a deposit before it can be determined whether or not the deposit contains economically recoverable mineralization.

**NON-IFRS FINANCIAL PERFORMANCE MEASURES**

The Company has included certain terms or performance measures commonly used in the mining industry that are not defined under IFRS in this document. These include: by-product cash cost per ounce sold, by-product all-in sustaining cost ("AISC") per ounce sold, earnings before interest, tax, depreciation and amortization, capital expenditures (expansionary), capital expenditures (sustaining), adjusted net earnings and average realized price per ounce. Non-IFRS financial performance measures do not have any standardized meaning prescribed under IFRS, and therefore, they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and should be read in conjunction with the Company's Financial Statements.

**Definitions**

*Adjusted earnings / (loss) and adjusted earnings / (loss) per share* excludes significant write-down adjustments and the gain / (loss) from financing instruments.

*All-in sustaining costs on a by-product* basis per ounce include total production cash costs on a by-product basis and costs related to sustaining production.

*Average realized gold price* represents the sales price of gold per ounce before deducting mining royalties, treatment and refining charges and gains or losses derived from the offtake agreement with Orion.

*By-product credits* include revenues from the sale of by-products from operating mines.

*Capital expenditure (expansionary)* is a capital expenditure intended to expand the business or operations by increasing production capacity beyond current levels of performance and includes capitalized exploration.

*Capital expenditure (sustaining)* is a capital expenditure necessary to maintain existing levels of production. The sustaining capital expenditures maintain the existing mine fleet, mill and other facilities so that they function at levels consistent from year to year.

*Cost of sales* per ounce sold is calculated by dividing the attributable cost of sales by the attributable ounces sold.

*Exploration and evaluation (sustaining)* expense is presented as mine site sustaining if it supports current mine operations.

*Rehabilitation – accretion and amortization* include depreciation on the assets related to the rehabilitation provision of gold operations and accretion on the rehabilitation provision of gold operations.

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![image_1a.jpg](image_1a.jpg)

**Average realized gold price per ounce of gold sold**

Average realized gold price per ounce of gold sold is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. It may not be comparable to information in other gold producers' reports and filings.

---

| | | |
|:---|:---|:---|
| | Three months ended<br>December 31, | Year ended<br>December 31, |
| (in thousands of U.S. dollars, unless otherwise noted)(i) | 2022 | 2022 |
| **Nevada production** |  |  |
| Revenue per financial statements | $11647 | 36958 |
| Silver revenue from mining operations | $(46) | (169) |
| Gold revenue from mining operations | $11601 | 36789 |
| Ounces of gold sold | 6769 | 21097 |
| **Average realized gold price** | **1714** | **1744** |
| **Lone Tree** |  |  |
| Revenue per financial statements | $4896 | 14543 |
| Silver revenue from mining operations | $(7) | (35) |
| Gold revenue from mining operations | $4889 | 14508 |
| Ounces of gold sold | 2768 | 8066 |
| **Average realized gold price** | **1766** | **1799** |
| **Ruby Hill** |  |  |
| Revenue per financial statements | $6752 | 22415 |
| Silver revenue from mining operations | $(39) | (135) |
| Gold revenue from mining operations | $6713 | 22280 |
| Ounces of gold sold | 4002 | 13031 |
| **Average realized gold price** | **1678** | **1710** |

---

(i)May not add due to rounding.

***Cash Costs***

Cash costs per ounce sold represents all direct and indirect operating costs related to the physical activities of producing gold, including on-site mining costs, processing, third-party smelting, refining and transportation costs, on-site general and administrative costs, community site relations, royalties and royalty taxes. State of Nevada net proceeds taxes are excluded. Cash costs incorporate the Company's share of production costs but exclude, among other items, the impact of depletion, depreciation and amortization ("DD&A"), reclamation costs, inventory write-downs, financing costs, capital development and exploration and income taxes. In order to arrive at consolidated cash costs, the Company includes its attributable share of total cash costs from operations where less than 100% interest in the economic share of production is held.

Cash cost: by-product - When deriving the cash costs associated with an ounce of gold, the Company includes by-product credits, as the Company considers that the cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production process. Accordingly, total production costs are reduced for revenues earned from silver sales.

Cash costs per ounce is a common financial performance measure in the mining industry, but the term does not have any standardized meaning. In determining its cash cost and cash cost per ounce, the Company has considered the guidelines provided by the World Gold Council, a non-regulatory, non-profit market development organization for the gold industry. A Company's adoption of the standard is voluntary and other companies may quantify these measures differently as a result of different underlying principles and policies applied.

***All-in Sustaining Costs ("AISC")***

AISC include total production cash costs incurred at the Company's mining operations, which forms the basis of the Company's by-product cash costs. Additionally, the Company includes sustaining capital expenditures which are expended to maintain existing levels of production (to which costs do not contribute to a material increase in annual gold ounce production over the next 12 months), rehabilitation accretion and amortization, and sustaining exploration and evaluation expenses. The Company does not allocate corporate general and administrative expenses. The measure seeks to reflect the full cost of production from current operations, therefore expansionary capital is excluded. Certain other cash expenditures, including tax payments (including the State of Nevada net proceeds tax), dividends and financing costs are also excluded. The Company reports AISC on a per ounce sold basis.

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![image_1a.jpg](image_1a.jpg)

This financial performance measure was adopted as a result of an initiative undertaken within the gold mining industry; however, this performance measure has no standardized meaning and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. In determining AISC, the Company has considered the guidelines provided by the World Gold Council, a non-regulatory, non-profit market development organization for the gold industry. A Company's adoption of the standard is voluntary and other companies may quantify these measures differently as a result of different underlying principles and policies applied.

The following table provides a reconciliation on a by-product basis for gold cash cost and AISC for the three and twelve months ended December 31, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the three and twelve months ended December 31, 2022 |  |  |  |  |
| *(in thousands of U.S. dollars, except per ounce information in dollars) (i)* | Nevada Production | Nevada Production | Nevada Production | Nevada Production |
|  | Three months ended <br>December 31, 2022 | Three months ended <br>December 31, 2022 | Year ended <br>December 31, 2022 | Year ended <br>December 31, 2022 |
| **By-Product** | **000$** | **Per gold ounce sold** | **000$** | **Per gold ounce sold** |
| Cost of sales excluding depletion, depreciation and amortization and royalty tax | 13330 | 1969 | 28156 | 1334 |
| Depletion, depreciation and amortization | 1579 | 234 | 4528 | 215 |
| **Total cost of sales** | **14909** | **2203** | **32684** | **1549** |
| Depletion, depreciation and amortization | (1579) | (234) | (4528) | (215) |
| Royalty tax | 200 | 29 | 705 | 33 |
| By-product credits | (46) | (7) | (169) | (8) |
| Inventory net realizable value adjustment | (6467) | (954) | (6467) | (306) |
| **Cash cost : by-product** | **7017** | **1037** | **22225** | **1053** |
| Rehabilitation - accretion and amortization | 679 | 100 | 2715 | 129 |
| **All-in sustaining cost : by-product** | **7696** | **1137** | **24940** | **1182** |
| **Total gold ounces produced** |  | **6769** |  | **21097** |
| **Total ounces sold** |  | **6769** |  | **21097** |

---

<sup>(i)</sup>May not add due to rounding.

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the three and twelve months ended December 31, 2022 |  |  |  |  |
| *(in thousands of U.S. dollars, except per ounce information in dollars) (i)* | Lone Tree | Lone Tree | Lone Tree | Lone Tree |
|  | Three months ended <br>December 31, 2022 | Three months ended <br>December 31, 2022 | Year ended <br>December 31, 2022 | Year ended <br>December 31, 2022 |
| **By-Product** | **000$** | **Per gold ounce sold** | **000$** | **Per gold ounce sold** |
| Cost of sales excluding depletion, depreciation and amortization | 4613 | 1667 | 9715 | 1204 |
| Depletion, depreciation and amortization | 110 | 40 | 570 | 71 |
| **Total cost of sales** | **4723** | **1707** | **10285** | **1275** |
| Depletion, depreciation and amortization | (110) | (40) | (570) | (71) |
| By-product credits | (7) | (3) | (35) | (4) |
| Inventory net realizable value adjustment | (2131) | (770) | (2131) | (264) |
| **Cash cost : by-product** | **2475** | **894** | **7549** | **936** |
| Rehabilitation - accretion and amortization | 479 | 173 | 1917 | 238 |
| **All-in sustaining cost : by-product** | **2954** | **1067** | **9466** | **1174** |
| **Total gold ounces produced** |  | **2768** |  | **8066** |
| **Total ounces sold** |  | **2768** |  | **8066** |

---

<sup>(i)</sup>May not add due to rounding.

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![image_1a.jpg](image_1a.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| For the three and twelve months ended December 31, 2022 |  |  |  |  |
| *(in thousands of U.S. dollars, except per ounce information in dollars) (i)* | Ruby Hill | Ruby Hill | Ruby Hill | Ruby Hill |
|  | Three months ended <br>December 31, 2022 | Three months ended <br>December 31, 2022 | Year ended <br>December 31, 2022 | Year ended <br>December 31, 2022 |
| **By-Product** | **000$** | **Per gold ounce sold** | **000$** | **Per gold ounce sold** |
| Cost of sales excluding depletion, depreciation and amortization and royalty tax | 8717 | 2178 | 18441 | 1415 |
| Depletion, depreciation and amortization | 1469 | 367 | 3958 | 304 |
| **Total cost of sales** | **10186** | **2545** | **22399** | **1719** |
| Depletion, depreciation and amortization | (1469) | (367) | (3958) | (304) |
| Royalty tax | 200 | 50 | 705 | 54 |
| By-product credits | (39) | (9) | (135) | (10) |
| Inventory net realizable value adjustment | (4336) | (1084) | (4336) | (333) |
| **Cash cost : by-product** | **4542** | **1135** | **14675** | **1126** |
| Rehabilitation - accretion and amortization | 199 | 50 | 799 | 61 |
| **All-in sustaining cost : by-product** | **4741** | **1185** | **15474** | **1187** |
| **Total gold ounces produced** |  | **4002** |  | **13031** |
| **Total ounces sold** |  | **4002** |  | **13031** |

---

<sup>(i)</sup>May not add due to rounding.

**Adjusted Earnings / (Loss)**

Adjusted earnings / (loss) and adjusted earnings / (loss) per share are non-IFRS measures that the Company considers to better reflect normalized earnings because it eliminates non-recurring items. Certain items that become applicable in a period may be adjusted for, with the Company retroactively presenting comparable periods with an adjustment for such items and conversely, items no longer applicable may be removed from the calculation. Neither adjusted earnings / (loss) nor adjusted earnings / (loss) per share have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

The following table shows a reconciliation of adjusted earnings / (loss) for the three and twelve months ended December 31, 2022 and 2021, to the net earnings / (loss) for each period.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended<br>December 31,** | **Three months ended<br>December 31,** | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
|<br>*(in thousands of U.S. dollars, unless otherwise noted)* | **2022** | **2021** | **2022** | **2021** |
| **Net income / (loss) for the period - Continuing operations** | $**(63938)** | $101781 | $**(79197)** | $76620 |
| **Adjust for:** |  |  |  |  |
| Restructuring costs | **—** |  | **—** | (4444) |
| Gain / (loss) on warrants | **(10788)** | 583 | **(1040)** | (2515) |
| Loss on convertible loans | **(19000)** | (6097) | **(9899)** | (6097) |
| Loss on deferred consideration | **(821)** | (649) | **(3262)** | (649) |
| Gain / (loss) on fair value measurement of Gold Prepay derivative | **(4205)** |  | **2916** |  |
| Gain / (loss) on fair value measurement of Silver Purchase derivative | **(9523)** |  | **1898** |  |
| Gain on asset exchange | **—** | 135531 | **—** | 135531 |
| Inventory net realizable value adjustment | **(6467)** |  | **(6467)** |  |
| **Total Adjustments** | $**(50804)** | $129368 | $**(15854)** | $121826 |
| **Adjusted loss for the period** | $**(13134)** | $(27587) | $**(63343)** | $(45206) |
| **Weighted average shares for the period** | **240420340** | 228398521 | **240100023** | 148288884 |
| **Adjusted loss per share for the period** | $**(0.05)** | $(0.12) | $**(0.26)** | $(0.30) |

---

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![image_1a.jpg](image_1a.jpg)

**RISKS AND RISK MANAGEMENT**

The Company's activities expose it to risks, including financial and operational risks of varying degrees of significance which could affect its ability to achieve its strategic objectives for growth and shareholder returns and which are more fully described in the "Risks and Uncertainties" section of this MD&A.

**Financial Instruments and Related Risks**

The Company's operations include the acquisition and exploration of mineral properties in the State of Nevada. The Company examines the various financial risks to which it is exposed and assesses the impact and likelihood of occurrence. These risks may include credit risk, liquidity risk, currency risk, interest rate risk and other risks. Where material, these risks are reviewed and monitored by the Board of Directors.

**Credit risk**

Counterparty credit risk is the risk that the financial benefits of contracts with a specific counterparty will be lost if a counterparty defaults on its obligations under the contract. This includes any cash amounts owed to the Company by those counterparties, less any amounts owed to the counterparty by the Company where a legal right of offset exists and also includes the fair values of contracts with individual counterparties which are recorded in the Financial Statements.

*Trade credit risk*

The Company closely monitors its financial assets and does not have any significant concentration of trade credit risk. The Company sells its products exclusively to large international financial institutions and other organizations with strong credit ratings. The historical level of customer defaults is negligible and, as a result, the credit risk associated with trade receivables is considered to be negligible. The trade receivable balance outstanding at December 31, 2022 and at December 31, 2021 was nil.

*Cash* 

In order to manage credit and liquidity risk the Company invests only in highly rated investment grade instruments that have maturities of 90 days or less and which are liquid after 30 days or less into a known amount of cash. Limits are also established based on the type of investment, the counterparty and the credit rating. The credit risk on cash and cash equivalents is therefore negligible.

**Liquidity risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure.

The following table summarizes the Company's contractual maturities and the timing of cash flows as at December 31, 2022. The amounts presented are based on the undiscounted contractual cash flows and may not agree with the carrying amounts on the Financial Statements.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **With 1 year** | **1-2 years** | **2-3 years** | &nbsp;&nbsp;&nbsp;&nbsp;**Thereafter** | &nbsp;&nbsp;&nbsp;&nbsp;**Total** |
| &nbsp;&nbsp;Accounts payable and accrued liabilities | $17233 | $— | $— | $— | $**17233** |
| &nbsp;&nbsp;Convertible loans |  |  | 60000 |  | **60000** |
| &nbsp;&nbsp;Gold Prepay Agreement | 17043 | 17469 | 13359 |  | **47871** |
| &nbsp;&nbsp;Silver Purchase Agreement | 14604 | 8679 | 2191 |  | **25474** |
| &nbsp;&nbsp;Deferred consideration | 47000 |  |  |  | **47000** |
| &nbsp;&nbsp;Reclamation and closure obligations | 923 | 857 | 810 | 94565 | **97155** |
| **Total** | $**96803** | $**27005** | $**76360** | $**94565** | $**294733** |

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**Market risk**

*Interest rate risk*

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As the Company holds excess cash in interest bearing bank accounts rather than investments, the interest rate risk is minimal.

*Currency risk*

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognized assets and liabilities are denominated in a currency that is not the Company's functional currency. The Company's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

**Fair value**

(i) Definitions<br>IFRS 13 establishes a fair value hierarchy that prioritizes the input to valuation techniques used to measure fair value as follows:

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![image_1a.jpg](image_1a.jpg)

<br>Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;<br>Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and<br>Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(ii) Valuation techniques used to determine fair values<br>The Company calculates fair values based on the following methods of valuation and assumptions:

*Financial assets*

Financial assets other than the Company's investment described below are carried at amortized cost. The fair value of cash and cash equivalents and receivables approximate their carrying value due to their short-term nature.<br>The Company's investment as further described in Note 6 of the Financial Statements was classified within level 2 of the fair value hierarchy and is fair valued using the common share price from the most recent subscription agreement at December 31, 2021, however during the year ended December 31, 2022 the investment listed on the TSX and therefore a quoted market price for this investment is available and is now classified within level 1 of the fair value hierarchy.

*Financial liabilities*

Financial liabilities not classified as fair value through profit or loss ("FVTPL") are carried at amortized cost. Accounts payable and accrued liabilities approximate their carrying value due to their short term nature.<br>The fair value of the loan payable to Premier approximates the carrying value as the interest rates are comparable to current market rates.<br>The share-based payment and warrant liabilities are classified within level 2 of the fair value hierarchy and are fair valued using a valuation model that incorporates such factors as the Company's share price volatility, risk free rates and expiry dates including managements assumptions on forfeiture rates.<br>The Stream Agreement liability was classified within level 3 of the fair value hierarchy and was fair valued using the net present value of expected future cash flows based on management assumptions on silver deliveries under the stream and a discount rate that includes the risk premium that market participants require. This liability was extinguished as of December 31, 2021.

Deferred consideration related to Ruby Hill was recognized at fair value on acquisition and at December 31, 2022. This liability is classified within level 3 of the fair value hierarchy as it involves management's best estimate of whether or not the key activities as described in Note 1(b) of the Company's Financial Statements required for each milestone payment will be achieved. Management has assumed that all milestones will be achieved and the early repayment option will be taken so the fair value of the deferred consideration is the $47 million discounted at 7.5%.

The Finance Package is classified within level 3 of the fair value hierarchy and is fair valued using credit spread calculated at inception and simulating out the expected movement in gold, silver and the Company's share price while considering key assumptions like the discount rate that includes the risk premium that market participants require, the volatility in the Company's share price and the discount for lack of marketability. <br>The Convertible Loans contain conversion and change of control rights that are separately measured at FVTPL each reporting period (level 3). The valuation of these options are dependent on the changes in the prices of the underlying assets and the probability that a change of control event would be expected to occur on December 13, 2023. The forced conversion rights were measured at fair value on inception but do not get revalued subsequently. <br>The Gold Prepay Agreement is recognized as a financial liability at amortized cost and it contains an embedded derivative in relation to the embedded gold price within the agreement that is measured at FVTPL each reporting period (level 3). The change in fair value is dependent on the movement in gold prices and the change in the risk free borrowing rate.<br>The Silver Purchase Agreement is recognized as a financial liability at amortized cost and it contains two embedded derivatives; one in relation to the embedded silver price within the agreement and the other in relation to the gold substitution option whereby i-80 Gold can choose to deliver gold instead of silver at a ratio of 75:1, both are measured at FVTPL each reporting period (level 3). On initial recognition and at December 31, 2022, the gold substitution option did not have any value. The change in fair value of the embedded derivative related to the silver price is dependent on the movement in silver prices and the change in the risk free borrowing rate.

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![image_1a.jpg](image_1a.jpg)

(iii) Fair value measurements using significant unobservable inputs (level 3)<br>The following table presents the changes in level 3 items for the periods ended December 31, 2022 and December 31, 2021:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | Orion | Orion | Orion | Sprott | Trident |
| | Stream Agreement | Deferred consideration | Conversion and change of control rights | Silver Purchase Agreement - silver price derivative | Gold Prepay Agreement - gold price derivative | Conversion and change of control rights | A&R Offtake gold lookback option |
| Balance as at January 1, 2021 | $**—** | $**—** | $**—** | $**—** | $**—** | $**—** | $**—** |
| Initial recognition | (853) | (41895) | (13599) |  |  | (2733) | (577) |
| Principal repayment | 11 |  |  |  |  |  |  |
| Disposals | 897 |  |  |  |  |  |  |
| Fair value adjustments | (55) | (648) | (4935) |  |  | (1162) | (153) |
| Balance as at December 31, 2021 |  | (42543) | (18534) |  |  | (3895) | (730) |
| Fair value adjustments |  | (3262) | (8495) | 1898 | 2916 | (1404) |  |
| **Balance as at December 31, 2022** | **—** | **(45805)** | **(27029)** | **1898** | **2916** | **(5299)** | **(730)** |

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(iv) Valuation inputs and relationships to fair value<br>The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Balance as at December 31, 2022** | **Unobservable input** | **Fair Value** | **Change in Fair Value** | **Change in Fair Value** |
| Assumption: |  |  | -10% | 10% |
| Silver Purchase Agreement - silver price derivative | Change in forecast silver price | 1898 | 4638 | (4638) |
| Gold Prepay Agreement - gold price derivative | Change in forecast gold price | 2916 | 4208 | (4208) |

---

The valuation of the Convertible Loans and related embedded derivatives were dependent on the changes in the prices of the underlying assets and the probability that a change of control event would be expected to occur on December 13, 2023.<br>The following table summarizes the quantitative information about the significant unobservable inputs used in level 3 fair value measurements:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Balance as at December 31, 2022** | **Unobservable input** | **Fair Value** | **Change in Fair Value** | **Change in Fair Value** |
| Assumption: |  | 25% | 15% | 35% |
| Orion - Conversion Option and Change of Control Option | Change of control probability | (27029) | 327 | 327 |
| Sprott - Conversion Option and Change of Control Option | Change of control probability | (5299) | (62) | 62 |

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**Management of Capital Risk**

The Company manages its share capital and equity settled employee benefits reserve as capital, the balance of which is $369.5 million at December 31, 2022 ($363.9 million at December 31, 2021). The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going-concern in order to pursue the exploration and development of its mineral properties and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk.<br>The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, acquire or dispose of assets or acquire new debt.<br>In order to maximize ongoing exploration and development efforts, the Company does not pay out dividends. The Company's investment policy is to invest its short-term excess cash in highly liquid short-term interest-bearing investments with short-term maturities, selected with regard to the expected timing of expenditures from continuing operations.<br>To effectively manage its capital requirements, the Company has in place a planning and budgeting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. In connection with the financing described in Note 26 of the Financial Statements, the Company expects it will have sufficient capital to carry out its development, exploration and evaluation plans through 2023.

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![image_1a.jpg](image_1a.jpg)

**Risks and Uncertainties**

*COVID-19 and Other Global Pandemics*

Though mining operations and exploration and development work at Lone Tree, Ruby Hill, Granite Creek and McCoy-Cove, are continuing with no significant interruptions to date, the Company may nonetheless be impacted at any time by an epidemic, pandemic or other public health crises that may arise, including COVID-19, as well as related governmental regulations, restrictions and other measures and business disruptions due to the impact of same on third parties with whom the Company is associated or does business. The Company is currently complying with all federal, state and local governmental regulations concerning COVID-19 and continues to monitor the developments and impact of COVID-19 and any epidemic, pandemic or public health crises as they may arise. In addition, government authorities could impose new or additional requirements resulting in further limitations on the activities, or the suspension of all activities.

In the event of an outbreak of a contagious disease at site at any of the Company's projects, government authorities, either federally or locally, or the Company could determine that a full suspension of all of its operations is necessary for the safety and protection of the workers. A complete suspension of operations could result in delays in production, the development of the project, result in additional increases in costs and have a material adverse effect on the financial position of the Company. If authorities were to impose a suspension order caused by any public health crises (including a resurgence of COVID-19), or if there is a full suspension of operations at the mine site for an undefined period of time there could be additional medical and other costs to be incurred, project delays, cost overruns, and operational restart costs. Moreover, the actual and threatened further spread of COVID-19 or any other pandemic diseases globally could materially and adversely impact the Company's business and stock markets and cause volatility and disruptions in the supply and demand for gold and other metals and minerals, global supply chains and financial markets, as well as declining trade and market sentiment and reduced mobility of people, which could have an adverse effect on the trading price of the Company's Common Shares, the Company's ability to raise capital, the demand for gold and the Company's future prospects.

*Fluctuating Commodity Prices*

Historically, gold and other precious metals prices have fluctuated widely and are affected by numerous external factors beyond the Company's control, including industrial and retail demand, central bank lending, sales and purchases of gold, forward sales of gold by producers and speculators, production and cost levels in major producing regions, short-term changes in supply and demand because of speculative hedging activities, confidence in the global monetary system, expectations of the future rate of inflation, the strength of the US dollar (the currency in which the price of gold is generally quoted), interest rates, terrorism and war, and other global or regional political or economic events. Resource prices have fluctuated widely and are sometimes subject to rapid short-term changes because of speculative activities. The exact effect of these factors cannot be accurately predicted, but any one of or any combination of, these factors may result in not receiving an adequate return on invested capital and a loss of all or part of an investment in securities in the Company.

*No Assurance of Title*

The acquisition of title to mineral projects is a very detailed and time-consuming process. Although the Company has taken precautions to ensure that legal title to its property interests is properly recorded in its name where possible, there can be no assurance that such title will ultimately be secured. Furthermore, there is no assurance that the interests of the Company in any of its properties may not be challenged or impugned. Title insurance is generally not available for mineral properties and the Company has a limited ability to ensure that it has obtained secure ownership claims to individual mineral claims. While the Company's intention is to take all reasonable steps to maintain title to its mineral properties, there can be no assurance that the Company will be successful in extending or renewing mineral rights on or prior to expiration of their term or that the title to any such properties will not be affected by an unknown title defect.

*Construction and Start-up of New Mines*

The success of construction projects and the start up of new mines by the Company is subject to a number of factors including the availability and performance of engineering and construction contractors, mining contractors, suppliers and consultants, the receipt of required governmental approvals and permits in connection with the construction of mining facilities and the conduct of mining operations (including environmental permits), the successful completion and operation of ore passes, the adsorption/de-adsorption, recovery plants and conveyors to move minerals, among other operational elements. Any delay in the performance of any one or more of the contractors, suppliers, consultants or other persons on which the Company is dependent in connection with its construction activities, a delay in or failure to receive the required governmental approvals and permits in a timely manner or on reasonable terms, or a delay in or failure in connection with the completion and successful operation of the operational elements in connection with new mines could delay or prevent the construction and start up of new mines as planned. There can be no assurance that current or future construction and start up plans implemented by the Company will be successful, that the Company will be able to obtain sufficient funds to finance construction and start up activities, that personnel and equipment will be available in a timely manner or on reasonable terms to successfully complete construction projects, that the Company will be able to obtain all necessary governmental approvals and permits or that the completion of the construction, the start up costs and the ongoing operating costs associated with the development of new mines will not be significantly higher than anticipated by the Company. Any of the foregoing factors could adversely impact the operations and financial condition of the Company.

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![image_1a.jpg](image_1a.jpg)

*Permits and Licenses*

The operations of the Company require licenses and permits from various governmental authorities. The Company believes that it presently holds all necessary licenses and permits required to carry on with activities which it is currently conducting under applicable laws and regulations, and believes it is presently complying in all material respects with the terms of such licenses and permits. However, such licenses and permits are subject to change in regulations and in various operating circumstances. Where required, obtaining necessary licenses and permits can be a complex and time-consuming process. The costs and delays associated with obtaining necessary licenses and permits could stop or materially delay or restrict the Company from proceeding with the development of an exploration project. There can be no assurance that the Company will be able to obtain all necessary licenses and permits required to carry out exploration, development, and mining operations at its mineral projects or that the Company will be able to comply with the conditions of all such necessary licenses and permits in an economically viable manner.

*Environmental Regulations and Potential Liabilities*

The operations of the Company are subject to environmental regulations promulgated by government agencies from time to time. Environmental legislation provides for restrictions and prohibitions on spills, releases or emissions of various substances produced in association with certain mining industry operations, such as seepage from tailings disposal areas, which would result in environmental pollution. In addition, certain types of operations require the submission and approval of environmental impact assessments. Environmental hazards may exist on the properties on which the Company holds interests which are unknown at present, and which have been caused by previous or existing owners or operators of the properties. Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions there under, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. Parties engaged in exploration or mining operations may be required to compensate those suffering loss or damage by reason of the exploration or mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations and, in particular, environmental laws.

Environmental legislation is evolving in a manner that will require stricter standards and enforcement, increased fines and penalties for noncompliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors, and employees. Amendments to current laws, regulations and permits governing operations and activities of mining companies, or more stringent implementation thereof, could have a material adverse impact on the Company and cause increases in exploration expenses, capital expenditures or production costs, reduction in levels of production at producing properties, or abandonment or delays in development of new mining properties. The potential financial exposure may be significant.

*Infrastructure*

Mining, processing, development, and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, railways, power sources and water supply are important determinants affecting capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect the Company's operations, financial condition, and results of operations.

*Availability and Costs of Infrastructure, Energy and Other Commodities*

Mining, processing, mine construction and development, capital development projects and exploration activities depend on adequate infrastructure. Reliable access to energy and power sources and water supply are important factors that affect capital and operating costs. If the Company does not have timely access to adequate infrastructure, there is no assurance that it will be able to start or continue exploiting and develop projects, complete them on timely basis or at all. There is no assurance that the ultimate operations will achieve the anticipated production volume, or that construction costs and operating costs will not be higher than estimates calculated.

The profitability of the Company's business is also affected by the market prices and availability of commodities and resources which are consumed or otherwise used in connection with the Company's operations and development projects such as diesel fuel, electricity, finished steel, tires, steel, chemicals, and reagents. Prices of such commodities and resources are also subject to volatile price movements, which can be material and can occur over short periods of time due to factors beyond the Company's control.

If there is a significant and sustained increase in the cost of certain commodities, the Company may decide that it is not economically feasible to continue all of the Company's production and development activities and this could have an adverse effect on profitability. An increase in worldwide demand for critical resources like input commodities, drilling equipment, mobile mining equipment, tires and skilled labor could affect the Company's ability to acquire them and lead to delays in delivery and unanticipated cost increases, which could have an effect on the Company's operating costs, capital expenditures and production schedules.

Further, the Company relies on certain key third party suppliers and contractors for services, equipment, raw materials used in, and the provision of services necessary for, the development, construction, and continuing operation of its assets. As a result, the Company's activities are subject to a number of risks some of which are outside its control, including negotiating agreements with suppliers and contractors on acceptable terms, the inability to replace a supplier or a contractor and its equipment, raw materials or services in the event that either party terminates the agreement, interruption of operations or increased costs in the event that a supplier or contractor ceases its business due to insolvency or other unforeseen event and failure of a supplier or contractor to perform under its agreement with the Company. The occurrences of one or more of these events could have a material effect on the business, results of operations and financial condition of the Company.

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*Uncertainty of Production Estimates*

Future estimates of production for the Company's mining operations are derived from a mining plan and these estimates are subject to change. There is no assurance the production estimates will be achieved and failure to achieve production estimates could have a materially adverse effect on the Company's future cash flow, results of operations and financial condition. These plans are based on, among other things, mining experience, reserve estimates, assumptions regarding ground conditions and physical characteristics of ores and estimated rates and costs of production. Actual ore production may vary from estimates for a variety of reasons, including risks and hazards of the types discussed above.

Such occurrences could result in damage to mineral properties, interruptions in production, money losses and legal liabilities and could cause a mineral property that has been mined profitably in the past to become unprofitable.

Any decrease in production or change to the timing of production or the prices realized for gold sales, will directly affect the amount and timing of the cash flow from operations. A production shortfall or any of these other factors would change the timing of the Company's projected cash flow and its ability to use the cash to fund capital expenditures.

*Financing Risk* 

The ability of the Company to arrange additional financing in the future will depend, in part, on the prevailing debt and equity market conditions, the price of gold, the performance of the Company and other factors outlined herein. There can be no assurance that additional capital or other types of financing will be available if needed or that, if available, the terms of such financing will be favorable to the Company.

If the Company raises additional funds through the sale of equity securities or securities convertible into equity securities, shareholders may have their equity interest in the Company diluted.

In addition, failure to comply with covenants under the Company's current or future debt agreements or to make scheduled payments of the principal of, or to pay interest on, its indebtedness or to make scheduled payments under hedging arrangements would likely result in an event of default under the debt agreements and would allow the lenders to accelerate the debt under these agreements, which may affect the Company's financial condition.

*Early Redemption of the Convertible Debentures*

The Convertible Debentures are not redeemable prior to the Maturity Date; provided, however, that, if the Company has not executed the security documents relating to the security being provided in connection with the offering within 90 days from the closing date, the Company shall be obligated to repurchase the Convertible Debentures, by the date that is 120 days from the closing date, at a price equal to 100% of the principal amount of the Convertible Debentures then outstanding plus any accrued and unpaid interest thereon up to and including the date of redemption. The early redemption of the Convertible Debentures would have a material adverse effect on the Company's business, results of operations and financial condition.

*Dependence on Key Personnel*

The Company's success is dependent on a relatively small number of key employees. The loss of one or more of these key employees, if not replaced, could have a material adverse effect on the Company's business, results of operations and financial condition.

*Dependence on Third Parties*

The Company relies significantly on strategic relationships with other entities and also on good relationships with regulatory and governmental departments. The Company also relies upon third parties to provide essential contracting services. In some cases, the Company may hold interests in its properties through joint ventures where it is not the manager of the joint venture. In these situations, the joint venture decision may not accord with the Company's stated or desired plan. There can be no assurance that existing relationships will continue to be maintained or that new ones will be successfully formed, and the Company could be adversely affected by changes to such relationships or difficulties in forming new ones. Any circumstance, which causes the early termination or non-renewal of one or more of these key business alliances or contracts, could adversely impact the Company, its business, operating results, and prospects.

*Losses from, or Liabilities for, Risks which are not Insured*

Hazards such as unusual or unexpected geological formations and other conditions are involved in mineral exploration and development and mining. The Company may become subject to liability for pollution, cave-ins, or hazards against which it cannot insure or against which it may elect not to insure. The payment of such liabilities would have a material, adverse effect on the Company's financial position and results of operations.

Although the Company maintains liability insurance in an amount which it considers adequate, the nature of these risks is such that liabilities might exceed policy limits, the liabilities and hazards might not be insurable against, or the Company might not elect to insure itself against such liabilities due to high premium costs or other reasons, in which event the Company could incur significant costs that could have a materially adverse effect upon its financial condition and results of operations.

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*Governmental Regulation*

Exploration, development and mining of minerals are subject to extensive federal, state and local laws and regulations governing acquisition of the mining interests, prospecting, development, mining, production, exports, taxes, labor standards, occupational health, waste disposal, toxic substances, water use, land use, land claims that may be brought by third parties, environmental protection and remediation, endangered and protected species, mine safety and other matters. No assurance can be given that new rules and regulations will not be enacted or that existing rules and regulations will not be applied or amended in a manner that could have a material adverse effect on the business, financial condition, and results of operations of the Company. The costs and delays associated with obtaining necessary licenses and permits and complying with these licenses and permits and applicable laws and regulations could stop or materially delay or restrict the Company from proceeding with the development of a project. Any failure to comply with applicable laws and regulations or licenses and permits, even if inadvertent, could result in interruption or closure of exploration, development or mining operations or material fines, penalties, or other liabilities. The Company may be required to compensate those suffering loss or damage by reason of its mining operations and may have civil or criminal fines or penalties imposed for violations of such laws, regulations and permits. These laws and regulations are administered by various governmental authorities including the federal, state, and local governments.

*Health and Safety*

Mining operations generally involve a high degree of risk. Personnel involved in the Company's operations are subject to many inherent risks, including but not limited to, rock bursts, cave-ins, flooding, fall of ground, electricity, slips and falls and moving equipment that could result in occupational illness, health issues and personal injuries. The Company has implemented various health and safety measures designed to mitigate such risks. Such precautions, however, may not be sufficient to eliminate health and safety risks and employees, contractors and others may not adhere to the occupational health and safety programs that are in place. Any such occupational health and personal safety issues may adversely affect the business of the Company and its future operations.

*Tax Matters*

The Company's taxes are affected by a number of factors, some of which are outside of its control, including the application and interpretation of the relevant tax laws and treaties. If the Company's filing position, application of tax incentives or similar benefits were to be challenged for whatever reason, this could have a material adverse effect on the Company's business, results of operations and financial condition.

The Company is subject to routine tax audits by various tax authorities. Tax audits may result in additional tax, interest payments and penalties which would negatively affect the Company's financial condition and operating results. New laws and regulations or changes in tax rules and regulations or the interpretation of tax laws by the courts or the tax authorities may also have a substantial negative impact on the Company's business. There is no assurance that the Company's current financial condition will not be materially adversely affected in the future due to such changes.

*Information Technology*

The Company is reliant on the continuous and uninterrupted operations of its Information Technology ("IT") systems. User access and security of all IT systems are critical elements to the operations of the Company. Protection against cyber security incidents and cloud security, and security of all of the Company's IT systems are critical to the operations of the Company. Any IT failure pertaining to availability, access or system security could result in disruption for personnel and could adversely affect the reputation, operations or financial performance of the Company.

The Company's IT systems could be compromised by unauthorized parties attempting to extract business sensitive, confidential or personal information, corrupting information or disrupting business processes or by inadvertent or intentional actions by the Company's employees or vendors. A cyber security incident resulting in a security breach or failure to identify a security threat, could disrupt business and could result in the loss of business sensitive, confidential or personal information or other assets, as well as litigation, regulatory enforcement, violation of privacy and security laws and regulations and remediation costs.

*Labor Difficulties*

Factors such as work slowdowns or stoppages caused by the attempted unionization of operations and difficulties in recruiting qualified miners and hiring and training new miners could materially adversely affect the Company's business. This would have a negative effect on the Company's business and results of operations which might result in the Company not meeting its business objectives.

*Nature of Mineral Exploration and Mining*

The economics of exploring and developing mineral properties are affected by many factors including capital and operating costs, variations of the grades and tonnages of ore mined, fluctuating mineral market prices, costs of mining and processing equipment and such other factors as government regulations, allowable production, importing and exporting of minerals and environmental protection.

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The effect of these factors cannot be accurately predicted, but the combination of these factors may result in the Company not receiving an adequate return on invested capital. The operations of the Company are also subject to all of the hazards and risks normally incidental to exploration and development of mineral properties, any of which could result in damage to life or property, environmental damage and possible legal liability for any or all damage. The activities of the Company may be subject to prolonged disruptions due to inclement or hazardous weather conditions depending on the location of operations in which the Company has interests. Hazards, such as unusual or unexpected geological formations, rock bursts, formation pressures, cave-ins, flooding, or other conditions may be encountered in the drilling and removal of material. Other risks include, but are not limited to, mechanical equipment performance problems, industrial accidents, labor disputes, drill rig shortages, the unavailability of materials and equipment, power failures, hydrological conditions, earthquakes, fires, landslides, and other Acts of God. While the Company may obtain insurance against certain risks in such amounts as it considers adequate, the nature of these risks are such that liabilities could exceed policy limits or could be excluded from coverage. There are also risks against which the Company cannot insure or against which it may elect not to insure. The potential costs which could be associated with any liabilities not covered by insurance or in excess of insurance coverage or compliance with applicable laws and regulations may cause substantial delays and require significant capital outlays, adversely affecting the future earnings and competitive position of the Company and, potentially, its financial position.

*Estimates of Mineral Resources and Mineral Reserves*

Mineral reserves and mineral resources are estimates only, and no assurance can be given that the anticipated tonnages and grades will be achieved, that the indicated level of recovery will be realized or that mineral reserves can be mined or processed profitably. Mineral reserve and mineral resource estimates may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing and other relevant issues. There are numerous uncertainties inherent in estimating mineral reserves and mineral resources, including many factors beyond the Company's control. Such estimation is a subjective process, and the accuracy of any mineral reserve or mineral resource estimate is a function of the quantity and quality of available data, the nature of the ore body and of the assumptions made and judgments used in engineering and geological interpretation. These estimates may require adjustments or downward revisions based upon further exploration or development work or actual production experience. Fluctuations in gold or silver prices, results of drilling, metallurgical testing and production, the evaluation of mine plans after the date of any estimate, permitting requirements or unforeseen technical or operational difficulties, may require revision of mineral reserve and mineral resource estimates. Prolonged declines in the market price of gold (or applicable by-product metal prices) may render mineral reserves containing relatively lower grades of mineralization uneconomical to recover and could materially reduce the Company's mineral reserves. Should reductions in mineral resources or mineral reserves occur, the Company may be required to take a material write-down of its investment in mining properties, reduce the carrying value of one or more of its assets or delay or discontinue production or the development of new projects, resulting in increased net losses and reduced cash flow. Mineral resources and mineral reserves should not be interpreted as assurances of mine life or of the profitability of current or future operations. There is a degree of uncertainty attributable to the calculation and estimation of mineral resources and mineral reserves and corresponding grades being mined and, as a result, the volume and grade of mineral reserves mined and processed, and recovery rates may not be the same as currently anticipated. Any material reductions in estimates of mineral reserves and mineral resources, or of the Company's ability to extract these mineral reserves, could have a material adverse effect on the Company's results of operations and financial condition. Mineral resources are not mineral reserves and have a greater degree of uncertainty as to their existence and feasibility. There is no assurance that mineral resources will be upgraded to proven or probable mineral reserves.

*Competition*

There is significant competition in the precious metals mining industry for mineral rich properties that can be developed and produced economically, the technical expertise to find, develop, and operate such properties, the labor to operate the properties and the capital for the purpose of funding such properties. Many competitors not only explore for and mine precious metals but conduct refining and marketing operations on a global basis. As a result of this competition, some of which is with large established mining companies with substantial capabilities and greater financial and technical resources than the Company, the Company may be unable to acquire desired properties, to recruit or retain qualified employees or to acquire the capital necessary to fund its operations and develop its projects. Existing or future competition in the mining industry could materially adversely affect the Company's prospects for mineral exploration and success in the future. Increased competition can result in increased costs and lower prices for metal and minerals produced and reduced profitability. Consequently, the revenues of the Company, its operations and financial condition could be materially adversely affected.

From time to time several companies may participate in the acquisition, exploration and development of natural resource properties thereby allowing for their participation in larger programs, permitting involvement in a greater number of programs and reducing financial exposure in respect of any one program. It may also occur that a particular company will assign all or a portion of its interest in a particular program to another of these companies due to the financial position of the company making the assignment. In determining whether or not the Company will participate in a particular program and the interest therein to be acquired by it, the directors will primarily consider the degree of risk to which the Company may be exposed and its financial position at that time.

*Conflicts of Interest*

The directors and officers of the Company may serve as directors or officers of other public resource companies or have significant shareholdings in other public resource companies. Situations may arise in connection with potential acquisitions and investments where the other interests of these directors and officers may conflict with the interests of the Company. In the event that such a conflict of interest arises at a meeting of the directors of the Company, a director is required by the *Business Corporations Act* (British Columbia) to disclose the conflict of interest and to abstain from voting on the matter.

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*Failure to further develop the Ruby Hill Mine and the Lone Tree Project*

The ability of the Company to sustain or increase the present level of gold and silver production is dependent on the success of its projects. Following the completion of the Asset Exchange and the Ruby Hill Acquisition, the only gold sales for the Company are from residual heap leaching operations continuing at Lone Tree and Ruby Hill. Risks and unknowns inherent in all projects include, but are not limited to: the accuracy of mineral reserve and mineral resource estimates; metallurgical recoveries; geotechnical and other technical assumptions; capital and operating costs of ongoing production of the project; the future price of gold and silver; environmental compliance regulations and restraints; political climate and/or governmental regulation and control; the accuracy of engineering; the ability to manage large-scale construction and scoping of major projects, including delays, aggressive schedules and unplanned events and conditions. The significant capital expenditures and long time period required to further develop this project are considerable and changes in costs and market conditions or unplanned events or construction schedules can affect project economics. The Company's ability to maintain licenses to operate the Ruby Hill Mine or the Lone Tree project is also important to the success of this project. Actual costs and economic returns may differ materially from estimates prepared by the Company, or the Company could fail or be delayed in obtaining all approvals necessary for execution of the project, in which case, the project may not proceed either on its original timing or at all. In addition, neither the Ruby Hill Mine nor the Lone Tree project may demonstrate attractive economic feasibility at low gold or silver prices.

The capital costs for each the Ruby Hill Mine and Lone Tree project may outweigh the Company's capital, financial and staffing capacity and may adversely affect the development of the Ruby Hill Mine and the Lone Tree project. The inability to further develop the Ruby Hill Mine or the Lone Tree project could have a material adverse effect on the Company's business, financial condition, results of operations, cash flows or prospects.

Projects also require the successful completion of feasibility studies, the resolution of various fiscal, tax and royalty matters, the issuance of, and compliance with, necessary governmental permits and the acquisition of satisfactory surface or other land rights. It may also be necessary for the Company to, among other things, find or generate suitable sources of water and power for the project, ensure that appropriate community infrastructure is developed by third parties to support the project and to secure appropriate financing to fund these expenditures. It is also not unusual in the mining industry for mining operations to experience unexpected problems during the start-up phase, resulting in delays and requiring the investment of more capital than anticipated.

*Inability to Obtain Additional Financing and Reduction in Scope of Planned Business Objectives.*

The Company will have various capital requirements and exploration and development expenditures as it proceeds to expand exploration and development activities at its mineral properties (including the refurbishment and retrofit of the Lone Tree facilities), develop any such properties or take advantage of opportunities for acquisitions, joint ventures or other business opportunities that may be presented to it. Funds from mining operations at the Ruby Hill Mine are not expected to be sufficient to fund such capital requirements. The continued exploration and future development of the Company's exploration and development-stage properties will therefore depend on the Company's ability to obtain the required financing. In particular, any potential development of its projects will require substantial capital commitments, which the Company cannot currently quantify and may not currently have in place. The Company can provide no assurance that it will be able to obtain financing on favorable terms or at all.

In addition, the Company may incur substantial costs in pursuing future capital requirements, including investment banking fees, legal fees, accounting fees, securities law compliance fees, printing and distribution expenses and other costs. The ability to obtain needed financing may be impaired by such factors as the capital markets (both generally and in the gold industry in particular), the price of gold on the commodities markets (which will impact the amount of asset-based financing available) and/or the loss of key management personnel. If the Company is unable to obtain additional financing as needed, it may not be able to move forward with its planned exploration and development activities at the Ruby Hill Mine, the Lone Tree project (including the refurbishment and retrofit of the Lone Tree facilities), the McCoy-Cove Project, the Granite Creek Project and the Buffalo Mountain Project. Any of the foregoing could have a material adverse effect on the Company's business, financial condition, results of operations, cash flows or prospects.

*Failure to realize the all of the benefits of the Company's Acquisitions*

There can be no assurance that management of the Company will be able to fully realize the expected benefits of the Ruby Hill Acquisition and the Asset Exchange. In addition, although the Company conducted substantial due diligence in connection with the Ruby Hill Acquisition and Asset Exchange, there may be unknown or undisclosed risks or liabilities relating to the Ruby Hill Mine, Lone Tree and Buffalo Mountain properties which could have a material adverse effect on its business, results or operations and financial position of the Corporation.

There is a risk that some or all of the expected benefits in respect of the acquisitions will fail to materialize, or may not occur within the time periods anticipated by management of the Company, or that there are additional risks and costs, such as integrated related costs, that may result in the failure to realize all of the benefits anticipated in the Ruby Hill Acquisition and the Asset Exchange. The realization of such benefits may be affected by a number of factors, many of which are beyond the control of the Company. All of these factors could cause dilution to the Company's earnings per share or decrease or delay the anticipated accretive effect of the Ruby Hill Acquisition and the Asset Exchange and cause a decrease in the market price of the Common Shares.

**MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

In compliance with the Canadian Securities Administrators' Regulation, we have filed certificates signed by the Chief Executive Officer ("CEO") and the Chief Financial Officer ("CFO") that, among other things, report on the design of disclosure controls and procedures and the design of internal controls over financial reporting.

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**Disclosure Controls and Procedures**

The CEO and the CFO have designed disclosure controls and procedures or have caused them to be designed under their supervision, in order to provide reasonable assurance that (i) material information relating to the Company has been made known to them; and (ii) information required to be disclosed in the Company's filings is recorded, processed, summarized and reported within the time periods specified in securities legislation. There were no changes made to i-80 Gold's disclosure controls and procedures in the fourth quarter 2022. Based on this evaluation, the CEO and CFO have concluded that the Company's disclosure controls and procedures were effective as at December 31, 2022.

**Internal Control over Financial Reporting**

The CEO and the CFO have also designed internal controls over financial reporting ("ICFR") or have caused them to be designed under their supervision, in order to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control – Integrated Framework (COSO 2013). Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable, not absolute, assurance with respect to financial statement preparation and presentation. There have been no significant changes in our internal controls during the year ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, i-80 Gold's internal control over financial reporting. Based on this assessment management concluded that the Company's internal controls over financial reporting were effective as of December 31, 2022.

**Limitations of Controls and Procedures**

Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that any design will not succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

**TECHNICAL INFORMATION**

Scientific and technical information contained in this MD&A has been reviewed and approved by Tim George, PE, and Tyler Hill, CPG-12146, who are the Qualified Persons, as the term is defined in NI 43-101. For more detailed information regarding the Company's material mineral properties and technical information related thereto, including a complete list of current technical reports applicable to such properties, please refer to the Company's Annual Information Form and other continuous disclosure documents filed by the Company on SEDAR at www.sedar.com, and on the Company's web-site at www.i80gold.com.

**CAUTIONARY STATEMENT ON FORWARD LOOKING STATEMENTS**

Certain information set forth in this MD&A, including management's assessment of the Company's future plans and operations, contains forward looking statements. By their nature, forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the potential impact of the global COVID-19 pandemic, general economic and industry conditions, volatility of commodity prices, title risks and uncertainties, currency fluctuations, construction and operational risks, licensing and permit requirements, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, imprecision of resource, reserve or production estimates, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be inaccurate and, as such, reliance should not be placed on forward looking statements. the Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, if any, that the Company will derive there from. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by applicable law.

Additional information relating to i-80 Gold can be found on i-80 Gold's web-site at www.i80gold.com, SEDAR at www.sedar.com, and on EDGAR at www.sec.gov/edgar.

## Exhibit 99.3

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**i-80 Gold Reports Q4 and Full Year 2022 Operating Results**

Reno, Nevada, March 14, 2023 **– i-80 GOLD CORP. (TSX:IAU) (NYSE:IAUX) ("i-80", or the "Company")** reports its operating and financial results for the three and twelve months ended December 31, 2022. i-80's Consolidated Financial Statements ("financial statements"), as well as i-80's Management's Discussion and Analysis of Operations and Financial Condition ("MD&A") for the three and twelve months ended December 31, 2022, are available on the Company's website at www.i80gold.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov.

Unless otherwise stated, all amounts referred to herein are in U.S. dollars.

**2022 Fourth Quarter Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gold sales of 6,769 ounces; all-in sustaining cost of $1,137 per ounce sold<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• December 31 cash balance of $48 million and $33 million in restricted cash

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continued exploration success at Ruby Hill with multiple high-grade intercepts including the discovery of polymetallic and base metal mineralization zones (4,509 core feet and 6,875 reverse circulation (RC) feet drilled)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 5,039 core feet and 4,940 RC feet drilled to expand monitoring of the hydraulic properties at McCoy-Cove

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed step-out and infill drilling at Buffalo Mountain (4,699 core feet, and 925 RC feet drilled)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 15,882 tons of oxide mineralized material shipped to Lone Tree from Granite Creek for processing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Acquisition of the Argenta property with key water rights for executing on the Cove Project de-watering strategy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lone Tree autoclave engineering study progressing on plan

**2022 Full Year Highlights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gold sales of 21,097 ounces; all-in sustaining cost of $1,182 per ounce sold<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commenced trading on the New York Stock Exchange on May 19, 2022 under the symbol IAUX

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Closed and funded the gold prepay and silver purchase and sale agreements totaling $75 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increased the size of the Granite Creek property package by approximately 1,280 acres (518 hectares), extending exposure along the primary fault structure by approximately 1.6 km north towards the Turquoise Ridge Mine, and 1.6 km south of Granite Creek

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Achieved high-grade results from the underground drill program at Granite Creek with multiple intercepts in the Ogee and South Pacific zones

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Several new discoveries at Ruby Hill containing high-grade precious and base metals including the Upper and Lower Hilltop Zones, East Hilltop and 1428 Zone

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 4,359 feet of development completed at Granite Creek

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 3,095 feet of exploration ramp advancement completed at McCoy-Cove

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed first gold sale in Company history

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A total of 240,449 feet (core and RC) drilled during the year with multiple positive results, especially at Ruby Hill and Granite Creek to expand mineralization further

"The residual leaching at Lone Tree and Ruby Hill continued to produce ounces during the fourth quarter with 6,769 ounces sold in the quarter.", stated Ryan Snow, Chief Financial Officer of i-80. "The Residual leaching at both Lone Tree and Ruby Hill produced 21,097 ounces during the year and the Company recognized revenue of $37 million for the year. We invested heavily in exploration in 2022 totaling $38.8 million which resulted in the discovery of the Hilltop Zone at Ruby Hill and the South Pacific Zone at Granite Creek."

<sup>1</sup> Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure.

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| | | |
|:---|:---|:---|
| | Three months ended<br>December 31, | Year ended<br>December 31, |
| *(in thousands of U.S. dollars, unless otherwise noted)* | 2022 | 2022 |
| **Revenue** | 11647 | 36958 |
| Cost of sales | (13530) | (28861) |
| Depletion, depreciation, and amortization | (1579) | (4528) |
| **Mine operating income / (loss)** | (3462) | 3569 |
| **Expenses** |  |  |
| Exploration, evaluation, and pre-development | 6625 | 38809 |
| General and administrative | 4509 | 17090 |
| Property maintenance | 2111 | 3249 |
| Share-based payments | 820 | 3280 |
| **Operating loss** | (17527) | (58859) |

---

Production and sales from residual leaching at Ruby Hill and Lone Tree totaled 6,769 ounces for the quarter and 21,097 ounces year to date (YTD) at cash costs per ounce sold of $1,037<sup>1</sup> and $1,053<sup>1</sup>, respectively, and all-in sustaining cost per ounce sold of $1,137<sup>1</sup> and $1,182<sup>1</sup>, respectively.

Exploration, evaluation, and pre-development costs were $6.6 million in Q4 and $38.8 million YTD. This spend mainly reflects the exploration and pre-development work at Granite Creek and Ruby Hill.

**Lone Tree Processing Facilities** 

Lone Tree is expected to become the hub of i-80's Nevada operations and the central processing facility for mineralization from the Granite Creek, McCoy-Cove and Ruby Hill underground gold deposits. Importantly, Lone Tree is host to infrastructure that, following successful refurbishment efforts, will position i-80 as one of only three companies in the United States capable of processing both oxide and refractory mineralization.

During the quarter, the Company continued to advance the detailed engineering study and cost estimate for the restart of the autoclave.

Residual leaching activities at Lone Tree produced 2,768 ounces gold during Q4 and 8,066 YTD at a cash cost per ounce sold of $894<sup>1</sup> and $936<sup>1</sup>, respectively, and all-in sustaining cost per ounce sold of $1,067<sup>1</sup> and $1,174<sup>1</sup>, respectively.

**Granite Creek**

The 2022 underground drill program at Granite Creek was focused on delineating mineralization for mining as well as upgrading and expanding resources expected to provide the bulk of mineralization to be mined in the following twelve months. Multiple underground levels have been developed, especially on the Ogee Zone, and the Company continued to extend the decline to depth, with the goal of initiating access to the new South Pacific Zone located immediately below and to the north of the underground mine workings. The Company targets to complete underground drilling and bring the newly discovered South Pacific Zone into the Granite Creek mine plan in 2023. In the upper parts of the mine, high-grade gold mineralization was being defined in the Otto, Adam Peak and Range Front horizons, while from the lower levels drilling was focused on defining mineralization in the Ogee Zone that is expected to be the primary zone in the near future. The amount of drilling completed as of December 31, 2022 totaling 83,887 feet was in line with the Company's drilling plan.

<sup>1</sup> Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure.

------

![image.jpg](image.jpg)

For the full year 2022, 17,455 tonnes of mineralized material was mined at an average grade of 7.6 g/t. The refractory material was shipped to the Twin Creeks facility for processing pursuant to the toll milling agreement that is in place with Nevada Gold Mines. The oxide material was stockpiled and has subsequently been shipped to Lone Tree for processing.

**McCoy-Cove**

Total development for the fourth quarter was 1,202 feet and 3,095 feet for the full year which included construction of the exploration ramp which continued on plan. Additional work on metallurgical and hydrology studies, engineering of de-watering and mining options, and reclamation activities associated with the inactive tailings storage facility is also being advanced.

**Ruby Hill**

During the fourth quarter, drilling of the Ruby Deeps and the Hilltop zones continued with multiple high-grade mineralization intercepts and multiple brownfield exploration targets tested, including discovery of polymetallic mineralization. 4,509 feet of core drilling and 6,875 feet of RC drilling was completed during the quarter, with a combined total of 137,210 feet completed in the year ended December 31, 2022. Due to the substantial success of the 2022 drill campaign at Ruby Hill, the program has been expanded into 2023. The primary targets of the first part of the program will be the Hilltop Corridor that includes polymetallic Carbonate Replacement Deposit (CRD) mineralization including the Upper, Lower and East Hilltop Zones, skarn mineralization in the Blackjack and Hilltop Corridor targets, and multiple untested geophysical anomalies. The Ruby Hill property provides significant optionality as it is host to oxide gold, sulphide gold, polymetallic CRD and skarn base metal mineralization. All deposits are located in close proximity to the underground infrastructure development being planned in 2023.

The Company continued to advance permitting for the construction of a decline to access the high-grade Ruby Deeps deposit and the Blackjack Zone with the intent of trucking refractory mineralization for processing at Lone Tree. The Company also completed a scoping study during the quarter for the restart of the existing oxide mill and subsequent conversion to a base metals facility.

Residual leaching activities at Ruby Hill produced 4,002 ounces gold during Q4 and 13,031 YTD at a cash cost per ounce sold of $1,135<sup>1</sup> and $1,126<sup>1</sup>, respectively, and all-in sustaining cost per ounce sold of $1,185<sup>1</sup> and $1,187<sup>1</sup>, respectively.

---

| | |
|:---|:---|
| **Conference Call Participant Details** | **Conference Call Participant Details** |
| **Webcast URL:** | https://app.webinar.net/r9y1wkKwzJj |
| **Confirmation #:** | 1606681 |
| **Phone Number Information:** | North American Toll-free: 1-888-394-8218 |

---

**Qualified Person**

Tyler Hill, CPG-12146, Chief Geologist at i-80 has reviewed this press release and is the Qualified Person for the information contained in it and is a Qualified Person within the meaning of National Instrument 43-101.

**About i-80 Gold Corp.**

**i-80 Gold Corp.** is a Nevada-focused mining company with a goal of achieving mid-tier gold producer status through the development of multiple deposits within the Company's advanced-stage property portfolio anticipated to be processed at the centrally located Lone Tree processing facility and autoclave.

**For further information, please contact:**

Ewan Downie – CEO

Ryan Snow - CFO

Matthew Gollat – Executive Vice-President

1.866.525.6450 info@i80gold.com

www.i80gold.com

<sup>1</sup> Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure.

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![image.jpg](image.jpg)

**Forward-looking information**

Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, actual production results and costs, results of operation outcomes and timing of updated technical studies at the Company's mineral projects, timing to advance mineral projects to production and advance permitting and feasibility work on the on its mineral projects and future production, development and exploration results. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.

Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: material adverse changes, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labor unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to i-80's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR at www.sedar.com.

**NON-IFRS FINANCIAL PERFORMANCE MEASURES**

The Company has included certain terms or performance measures commonly used in the mining industry that are not defined under IFRS in this document. These include: by-product cash cost per ounce sold, by-product all-in sustaining cost ("AISC") per ounce sold, earnings before interest, tax, depreciation and amortization, capital expenditures (expansionary), capital expenditures (sustaining), adjusted net earnings and average realized price per ounce. Non-IFRS financial performance measures do not have any standardized meaning prescribed under IFRS, and therefore, they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and should be read in conjunction with the Company's Financial Statements.

**Definitions**

*Adjusted earnings / (loss) and adjusted earnings / (loss) per share* excludes significant write-down adjustments and the gain / (loss) from financing instruments.

*All-in sustaining costs on a by-product* basis per ounce include total production cash costs on a by-product basis and costs related to sustaining production.

*Average realized gold price* represents the sales price of gold per ounce before deducting mining royalties, treatment and refining charges and gains or losses derived from the offtake agreement with Orion.

*By-product credits* include revenues from the sale of by-products from operating mines.

<sup>1</sup> Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure.

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![image.jpg](image.jpg)

*Capital expenditure (expansionary)* is a capital expenditure intended to expand the business or operations by increasing production capacity beyond current levels of performance and includes capitalized exploration.

*Capital expenditure (sustaining)* is a capital expenditure necessary to maintain existing levels of production. The sustaining capital expenditures maintain the existing mine fleet, mill and other facilities so that they function at levels consistent from year to year.

*Cost of sales* per ounce sold is calculated by dividing the attributable cost of sales by the attributable ounces sold.

*Exploration and evaluation (sustaining)* expense is presented as mine site sustaining if it supports current mine operations.

*Rehabilitation – accretion and amortization* include depreciation on the assets related to the rehabilitation provision of gold operations and accretion on the rehabilitation provision of gold operations.

**Average realized gold price per ounce of gold sold**

Average realized gold price per ounce of gold sold is a non-IFRS measure and does not constitute a measure recognized by IFRS and does not have a standardized meaning defined by IFRS. It may not be comparable to information in other gold producers' reports and filings.

---

| | | |
|:---|:---|:---|
| | Three months ended<br>December 31, | Year ended<br>December 31, |
| (in thousands of U.S. dollars, unless otherwise noted)(i) | 2022 | 2022 |
| **Nevada production** |  |  |
| Revenue per financial statements | $11647 | 36958 |
| Silver revenue from mining operations | $(46) | (169) |
| Gold revenue from mining operations | $11601 | 36789 |
| Ounces of gold sold | 6769 | 21097 |
| **Average realized gold price** | **1714** | **1744** |
| **Lone Tree** |  |  |
| Revenue per financial statements | $4896 | 14543 |
| Silver revenue from mining operations | $(7) | (35) |
| Gold revenue from mining operations | $4889 | 14508 |
| Ounces of gold sold | 2768 | 8066 |
| **Average realized gold price** | **1766** | **1799** |
| **Ruby Hill** |  |  |
| Revenue per financial statements | $6752 | 22415 |
| Silver revenue from mining operations | $(39) | (135) |
| Gold revenue from mining operations | $6713 | 22280 |
| Ounces of gold sold | 4002 | 13031 |
| **Average realized gold price** | **1678** | **1710** |

---

(i) May not add due to rounding.

<sup>1</sup> Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure.

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![image.jpg](image.jpg)

***Cash Costs***

Cash costs per ounce sold represents all direct and indirect operating costs related to the physical activities of producing gold, including on-site mining costs, processing, third-party smelting, refining and transportation costs, on-site general and administrative costs, community site relations, royalties and royalty taxes. State of Nevada net proceeds taxes are excluded. Cash costs incorporate the Company's share of production costs but exclude, among other items, the impact of depletion, depreciation and amortization ("DD&A"), reclamation costs, inventory write-downs, financing costs, capital development and exploration and income taxes. In order to arrive at consolidated cash costs, the Company includes its attributable share of total cash costs from operations where less than 100% interest in the economic share of production is held.

Cash cost: by-product - When deriving the cash costs associated with an ounce of gold, the Company includes by-product credits, as the Company considers that the cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production process. Accordingly, total production costs are reduced for revenues earned from silver sales.

Cash costs per ounce is a common financial performance measure in the mining industry, but the term does not have any standardized meaning. In determining its cash cost and cash cost per ounce, the Company has considered the guidelines provided by the World Gold Council, a non-regulatory, non-profit market development organization for the gold industry. A Company's adoption of the standard is voluntary and other companies may quantify these measures differently as a result of different underlying principles and policies applied.

***All-in Sustaining Costs ("AISC")***

AISC include total production cash costs incurred at the Company's mining operations, which forms the basis of the Company's by-product cash costs. Additionally, the Company includes sustaining capital expenditures which are expended to maintain existing levels of production (to which costs do not contribute to a material increase in annual gold ounce production over the next 12 months), rehabilitation accretion and amortization, and sustaining exploration and evaluation expenses. The Company does not allocate corporate general and administrative expenses. The measure seeks to reflect the full cost of production from current operations, therefore expansionary capital is excluded. Certain other cash expenditures, including tax payments (including the State of Nevada net proceeds tax), dividends and financing costs are also excluded. The Company reports AISC on a per ounce sold basis.

This financial performance measure was adopted as a result of an initiative undertaken within the gold mining industry; however, this performance measure has no standardized meaning and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. In determining AISC, the Company has considered the guidelines provided by the World Gold Council, a non-regulatory, non-profit market development organization for the gold industry. A Company's adoption of the standard is voluntary and other companies may quantify these measures differently as a result of different underlying principles and policies applied.

<sup>1</sup> Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure.

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![image.jpg](image.jpg)

The following table provides a reconciliation on a by-product basis for gold cash cost and AISC for the three and twelve months ended December 31, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
| For the three and twelve months ended December 31, 2022 |  |  |  |  |
| (in thousands of U.S. dollars, except per ounce information in dollars) (i) | Nevada Production | Nevada Production | Nevada Production | Nevada Production |
|  | Three months ended <br>December 31, 2022 | Three months ended <br>December 31, 2022 | Year ended <br>December 31, 2022 | Year ended <br>December 31, 2022 |
| **By-Product** | **000$** | **Per gold ounce sold** | **000$** | **Per gold ounce sold** |
| Cost of sales excluding depletion, depreciation and amortization and royalty tax | 13330 | 1969 | 28156 | 1334 |
| Depletion, depreciation and amortization | 1579 | 234 | 4528 | 215 |
| **Total cost of sales** | **14909** | **2203** | **32684** | **1549** |
| Depletion, depreciation and amortization | (1579) | (234) | (4528) | (215) |
| Royalty tax | 200 | 29 | 705 | 33 |
| By-product credits | (46) | (7) | (169) | (8) |
| Inventory net realizable value adjustment | (6467) | (954) | (6467) | (306) |
| **Cash cost : by-product** | **7017** | **1037** | **22225** | **1053** |
| Rehabilitation - accretion and amortization | 679 | 100 | 2715 | 129 |
| **All-in sustaining cost : by-product** | **7696** | **1137** | **24940** | **1182** |
| **Total gold ounces produced** |  | **6769** |  | **21097** |
| **Total ounces sold** |  | **6769** |  | **21097** |

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<sup>(1)</sup> May not add due to rounding.

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| | | | | |
|:---|:---|:---|:---|:---|
| For the three and twelve months ended December 31, 2022 |  |  |  |  |
| (in thousands of U.S. dollars, except per ounce information in dollars) (i) | Lone Tree | Lone Tree | Lone Tree | Lone Tree |
|  | Three months ended <br>December 31, 2022 | Three months ended <br>December 31, 2022 | Year ended <br>December 31, 2022 | Year ended <br>December 31, 2022 |
| **By-Product** | **000$** | **Per gold ounce sold** | **000$** | **Per gold ounce sold** |
| Cost of sales excluding depletion, depreciation and amortization | 4613 | 1667 | 9715 | 1204 |
| Depletion, depreciation and amortization | 110 | 40 | 570 | 71 |
| **Total cost of sales** | **4723** | **1707** | **10285** | **1275** |
| Depletion, depreciation and amortization | (110) | (40) | (570) | (71) |
| By-product credits | (7) | (3) | (35) | (4) |
| Inventory net realizable value adjustment | (2131) | (770) | (2131) | (264) |
| **Cash cost : by-product** | **2475** | **894** | **7549** | **936** |
| Rehabilitation - accretion and amortization | 479 | 173 | 1917 | 238 |
| **All-in sustaining cost : by-product** | **2954** | **1067** | **9466** | **1174** |
| **Total gold ounces produced** |  | **2768** |  | **8066** |
| **Total ounces sold** |  | **2768** |  | **8066** |

---

<sup>(1)</sup> May not add due to rounding.

<sup>1</sup> Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure.

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![image.jpg](image.jpg)

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| | | | | |
|:---|:---|:---|:---|:---|
| For the three and twelve months ended December 31, 2022 |  |  |  |  |
| (in thousands of U.S. dollars, except per ounce information in dollars) (i) | Ruby Hill | Ruby Hill | Ruby Hill | Ruby Hill |
|  | Three months ended <br>December 31, 2022 | Three months ended <br>December 31, 2022 | Year ended <br>December 31, 2022 | Year ended <br>December 31, 2022 |
| **By-Product** | **000$** | **Per gold ounce sold** | **000$** | **Per gold ounce sold** |
| Cost of sales excluding depletion, depreciation and amortization and royalty tax | 8717 | 2178 | 18441 | 1415 |
| Depletion, depreciation and amortization | 1469 | 367 | 3958 | 304 |
| **Total cost of sales** | **10186** | **2545** | **22399** | **1719** |
| Depletion, depreciation and amortization | (1469) | (367) | (3958) | (304) |
| Royalty tax | 200 | 50 | 705 | 54 |
| By-product credits | (39) | (9) | (135) | (10) |
| Inventory net realizable value adjustment | (4336) | (1084) | (4336) | (333) |
| **Cash cost : by-product** | **4542** | **1135** | **14675** | **1126** |
| Rehabilitation - accretion and amortization | 199 | 50 | 799 | 61 |
| **All-in sustaining cost : by-product** | **4741** | **1185** | **15474** | **1187** |
| **Total gold ounces produced** |  | **4002** |  | **13031** |
| **Total ounces sold** |  | **4002** |  | **13031** |

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<sup>(1)</sup> May not add due to rounding.

**Adjusted Earnings / (Loss)**

Adjusted earnings / (loss) and adjusted earnings / (loss) per share are non-IFRS measures that the Company considers to better reflect normalized earnings because it eliminates non-recurring items. Certain items that become applicable in a period may be adjusted for, with the Company retroactively presenting comparable periods with an adjustment for such items and conversely, items no longer applicable may be removed from the calculation. Neither adjusted earnings / (loss) nor adjusted earnings / (loss) per share have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

The following table shows a reconciliation of adjusted earnings / (loss) for the three and twelve months ended December 31, 2022 and 2021, to the net earnings / (loss) for each period.

<sup>1</sup> Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see "Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial measure to the most directly comparable IFRS measure.

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![image.jpg](image.jpg)

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended<br>December 31,** | **Three months ended<br>December 31,** | **Year ended<br>December 31,** | **Year ended<br>December 31,** |
|<br>*(in thousands of U.S. dollars, unless otherwise noted)* | **2022** | **2021** | **2022** | **2021** |
| **Net income / (loss) for the period - Continuing operations** | $**(63938)** | $101781 | $**(79197)** | $76620 |
| **Adjust for:** |  |  |  |  |
| Restructuring costs | $**—** | $— | $**—** | $(4444) |
| Gain / (loss) on warrants | $**(10788)** | $583 | $**(1040)** | $(2515) |
| Loss on convertible loans | $**(19000)** | $(6097) | $**(9899)** | $(6097) |
| Loss on deferred consideration | $**(821)** | $(649) | $**(3262)** | $(649) |
| Gain / (loss) on fair value measurement of Gold Prepay derivative | $**(4205)** | $— | $**2916** | $— |
| Gain / (loss) on fair value measurement of Silver Purchase derivative | $**(9523)** | $— | $**1898** | $— |
| Gain on asset exchange | $**—** | $135531 | $**—** | $135531 |
| Inventory net realizable value adjustment | $**(6467)** | $— | $**(6467)** | $— |
| **Total Adjustments** | $**(50804)** | $129368 | $**(15854)** | $121826 |
| **Adjusted loss for the period** | $**(13134)** | $(27587) | $**(63343)** | $(45206) |
| **Weighted average shares for the period** | **240420340** | 228398521 | **240100023** | 148288884 |
| **Adjusted loss per share for the period** | $**(0.05)** | $(0.12) | $**(0.26)** | $(0.30) |

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