SILVER BULL RESOURCES, INC. Annual Report - Your Investor's Guide

Gain essential insights into SILVER BULL RESOURCES, INC.'s latest annual report with this clear and concise summary. We've translated the company's performance, challenges, and future prospects into plain language, drawing directly from their official filings for the fiscal year ending October 31, 2025.

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1. Business Overview

SILVER BULL RESOURCES, INC. is a small mineral exploration company. It explores for and develops deposits of silver, zinc, lead, and copper. Its primary asset is the Sierra Mojada Project in Mexico, a past-producing silver-zinc-lead mine. The company also holds exploration properties in Kazakhstan and Canada. As an exploration company, it typically generates no revenue from mining operations.

For the fiscal year ending October 31, 2025, the company qualified as a "Smaller reporting company" and a "Non-accelerated filer." This means its public float (the market value of shares held by non-insiders) is under $700 million, allowing for less stringent reporting requirements than larger companies.

2. Financial Performance

As an exploration company, Silver Bull Resources generated no significant revenue from mining operations this fiscal year.

• Revenue: $0.0 million (primarily minor interest income).
• Net Loss: $5.8 million, up from $4.5 million last year. This increase reflects higher legal and administrative costs for the NAFTA claim and ongoing exploration.
• Loss Per Share (Basic & Diluted): ($0.05), compared to ($0.04) last year.
• Exploration Expenses: $2.1 million for the year, primarily for geological studies and permitting at Sierra Mojada, despite the ongoing blockade.
• General & Administrative Expenses: $3.5 million, including legal fees for the NAFTA claim and corporate overhead.

These results highlight the company's pre-production status and the substantial capital needed for mineral exploration, especially when operational disruptions and legal expenses add to the costs.

3. Risk Factors

Investors should consider several significant risks:

• Going Concern Uncertainty: The company has expressed significant doubt about its ability to continue operations for the next 12 months without securing additional funding. If it cannot raise capital, the company may face asset sales, significant dilution for existing shareholders, or even bankruptcy.
• Operational Disruptions & Blockade: An ongoing blockade by local miners at the flagship Sierra Mojada project in Mexico directly threatens the company's ability to explore and develop its main asset. Prolonged disruption could further impair assets and reduce their value.
• Asset Impairment: The company recorded a $1.2 million impairment charge for certain exploration assets in Kazakhstan. Further impairment of the Sierra Mojada concession remains a risk if the blockade continues or if title issues emerge.
• Permitting and Property Rights: The company risks difficulties in obtaining and maintaining necessary permits and could encounter unexpected title issues for its properties, potentially halting or delaying projects.
• Difficulty Raising Capital: Given its "going concern" status and small market capitalization, the company faces a significant risk of not being able to raise additional capital on favorable terms (or at all). This could lead to project delays or abandonment.
• Commodity Price Volatility: Global market prices, which are inherently volatile, heavily influence the value of potential discoveries (silver, zinc, lead, and copper).
• Political and Regulatory Instability: Operating in Mexico carries inherent risks, including political instability, potential nationalization of natural resources, changes in mining and tax policies, and community relations challenges.
• Project Development Uncertainty: There is no guarantee the Sierra Mojada project will ever become a working mine, or that the company will find enough valuable minerals to meet economic feasibility standards. Exploration is inherently risky.
• Key Personnel Retention: Losing key management, technical consultants, or experts could severely impact the company's ability to execute exploration programs and manage the NAFTA claim.
• NAFTA Claim Outcome: While the NAFTA claim offers significant potential upside, its outcome remains uncertain. An unfavorable ruling or a significantly lower award than anticipated could result in a major financial setback.

4. Management Discussion (MD&A highlights)

For the fiscal year ending October 31, 2025, the company reported a net loss of $5.8 million, an increase from $4.5 million last year. This rise primarily stems from increased legal and administrative costs related to the NAFTA claim and ongoing exploration. As a pre-revenue exploration company, the company continues to focus on managing expenses while advancing key projects.

A significant challenge is the "going concern" warning, which indicates substantial doubt about the company's ability to continue operations for the next 12 months without securing additional funding. An ongoing blockade by local miners at its Sierra Mojada property further exacerbates this challenge, severely hampering exploration and development activities. The company also recorded a $1.2 million impairment charge for certain exploration assets in Kazakhstan.

Despite these challenges, the company achieved strategic progress. It is actively pursuing a claim against the Mexican government under the North American Free Trade Agreement (NAFTA). It secured a "Funding Agreement" to cover up to 80% of legal and expert costs in exchange for a percentage of any future award. Initial hearings for this claim are expected in mid-2026. Technical progress included fine bubble flotation test work for mineral processing, with initial results showing a potential 5-10% improvement in zinc recovery rates.

The company reported no significant changes to its executive leadership team or Board of Directors during the fiscal year. The company's strategy remains focused on resolving the NAFTA claim, advancing the Sierra Mojada Project (despite the blockade), optimizing existing assets through technical studies, and evaluating new opportunities. However, current financial constraints limit immediate action.

External factors continue to influence operations and strategic decisions. These include global economic events affecting commodity prices, changes in Mexican government policies and regulations, and an increasing focus on ESG (Environmental, Social, and Governance) considerations. Global supply chain issues can also impact the cost and availability of equipment and materials.

5. Financial Health

The company's financial health is precarious, as its "going concern" warning highlights.

• Cash and Cash Equivalents: As of October 31, 2025, the company held $0.7 million in cash and cash equivalents, a decrease from $2.5 million at the end of the prior fiscal year.
• Working Capital Deficit: The company reported a $1.5 million working capital deficit, meaning its current liabilities exceed current assets.
• Debt: The company carries no significant long-term debt but has current liabilities primarily from accounts payable and accrued expenses.
• Burn Rate: The average monthly cash burn rate (excluding NAFTA claim costs covered by the funding agreement) was approximately $0.4 million during the fiscal year. This means current cash reserves are insufficient for the next 12 months.
• Market Capitalization: As of April 30, 2025, the market value of the company's common stock held by non-insiders was approximately $4.6 million, implying a total market capitalization of around $6.0 million based on outstanding shares.
• Liquidity Challenge: The ability to raise additional capital presents a critical risk. While the NAFTA Funding Agreement offers some relief for legal costs and limited operating expenses, it does not fully address the broader operational funding requirements.

6. Future Outlook

Looking ahead, the company's immediate future depends heavily on resolving its liquidity issues and the ongoing blockade at Sierra Mojada.

• Strategic Priorities: The company's strategy primarily focuses on:
  1. Resolving the NAFTA claim: This is a key strategic priority, as it could provide substantial non-dilutive capital.
  2. Advancing the Sierra Mojada Project: Despite the blockade, the company continues efforts on permitting, technical studies, and community engagement to prepare for future exploration and development, contingent on resolving the blockade.
  3. Optimizing existing assets: Through technical studies like fine bubble flotation test work, the company aims to improve the economic viability of its projects.
  4. Evaluating new opportunities: While constrained, the company continues to seek potential acquisitions that could diversify its portfolio.
• Sierra Mojada Activities: If the company resolves the blockade and secures funding, it plans to resume drilling programs, metallurgical testing, and environmental baseline studies at Sierra Mojada in late 2026 and beyond. These activities will likely require an initial investment of $3-5 million over 12-18 months.
• NAFTA Claim Resolution: The company anticipates significant progress on the NAFTA claim. Arbitration hearings are expected to conclude by mid-2027, potentially leading to a resolution or award thereafter.
• VAT Recovery: The company is actively pursuing the recovery of approximately $1.5 million in Value-Added Taxes (VAT) paid in Mexico. A successful recovery would significantly improve its cash position.
• Long-Term Goal: The ultimate goal is to advance the Sierra Mojada project towards a pre-feasibility or feasibility study and eventually enter the development or production stage. However, this remains a long-term prospect contingent on overcoming current challenges.

7. Competitive Position

The mineral exploration industry is highly competitive. Silver Bull Resources competes with numerous other small and large mining companies for:

• Acquisition of new properties: Intense competition exists for promising mineral concessions globally.
• Access to capital: Small exploration companies like Silver Bull often compete for limited investment funds, especially in challenging market conditions.
• Skilled personnel: Attracting and retaining experienced geologists, engineers, and management teams is crucial.

While the company possesses a potentially significant asset in Sierra Mojada, its current operational challenges and financial constraints disadvantage it compared to larger, better-funded competitors. These competitors can more easily absorb exploration risks and operational delays. Its focus on the NAFTA claim and specific technical improvements aims to differentiate the company, but the overall competitive landscape remains challenging.

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Investing in Silver Bull Resources, Inc. at this stage means understanding its high-risk, high-reward profile. The company faces significant financial challenges and operational hurdles, particularly the ongoing blockade at its primary asset and its "going concern" status. However, the potential upside from a successful NAFTA claim and the long-term development of the Sierra Mojada project, if current obstacles are overcome, could be substantial. Your decision should weigh these significant risks against the potential for future value creation, keeping in mind the company's current pre-revenue exploration stage and reliance on external funding.