ATHENA GOLD CORP Annual Report - How They Did This Year

I’ve put together a simple guide to help you understand Athena Gold Corp’s performance this past year. Think of this as a "cheat sheet" to help you decide if this company fits your investment goals.

1. What does this company do?

Athena Gold Corp is a "junior" mining company focused on finding and developing gold deposits in the Western United States. Unlike major producers, Athena is currently in the exploration stage. Their primary asset is the Excelsior Springs project in Nevada, which covers approximately 2,300 acres. This year, the company moved its corporate home from Delaware to British Columbia, Canada, to better align with Canadian market standards for mining operations.

2. Financial performance

Because the company is in the exploration phase, it does not yet generate revenue from mining. For the 2025 fiscal year, Athena reported a $1.2 million loss, driven by administrative costs and ongoing exploration expenses. The company maintains a burn rate of approximately $100,000 per month. To fund these operations, they rely on selling shares; by the end of 2025, they had 31.5 million shares outstanding.

3. Major wins and challenges

• Wins: The move to British Columbia has streamlined business operations and improved access to Canadian capital markets. Additionally, the company successfully raised $1.5 million through private stock sales, ensuring their drilling programs remain active.
• Challenges: The company consistently operates at a loss. Furthermore, they must navigate complex U.S. tax regulations. As a former U.S. entity, they face the risk of being classified as a "surrogate foreign corporation," which could result in higher U.S. tax obligations on their global income.

4. Financial health

Athena relies entirely on external funding. They held approximately $450,000 in cash at the end of the fiscal year. To keep the business running, they issue new shares and warrants. While these capital raises prevent the company from running out of cash, they also lead to share dilution, which reduces the percentage of ownership held by existing investors. Additionally, outstanding warrants can create a "ceiling" on the stock price, as they allow holders to purchase shares at a set price, which may limit future upside for current shareholders.

5. Key risks

• Dilution: Because the company funds itself by selling new shares, your ownership stake can shrink over time as more shares are issued to cover drilling costs.
• Exploration Risk: The Excelsior Springs project is speculative. There is no guarantee that the company will discover enough gold to make a mine profitable.
• Tax Uncertainty: The IRS may challenge the company's move to Canada. If the IRS determines that the company still owes U.S. taxes, it could significantly impact their limited cash reserves.
• Market Sensitivity: As a small-cap company, the stock is highly volatile. If gold prices drop, investors often sell speculative stocks first, which can cause the share price to fall sharply.

6. Future outlook

Athena is playing the long game with exploration goals set through 2029, including an extensive drilling program. Their primary strategy is to prove the value of their land and eventually be acquired by a larger mining company. Since junior explorers rarely build mines themselves, the goal is to make the Excelsior Springs project attractive enough for a major producer to purchase the asset at a premium.

Decision Checklist:

• Are you comfortable with high risk? This is a speculative exploration play, not a steady dividend-paying stock.
• Do you understand the dilution risk? Be prepared for the possibility that your ownership percentage may decrease as the company raises more capital.
• What is your timeline? This is a long-term hold, as the company's success depends on multi-year exploration results and a potential future buyout.