STOCK TITAN

U.S. GoldMining Inc. (USGO) widens loss while funding Whistler drilling push

(Moderate)
(Neutral)
Form Type
10-Q

Rhea-AI Filing Summary

U.S. GoldMining Inc. reported a significantly larger net loss as it ramped up exploration at its Whistler Project in Alaska. For the three months ended June 30, 2026, net loss was $4.21 million versus $0.91 million a year earlier; for the six months, net loss was $6.14 million versus $2.20 million, driven mainly by higher drilling and consulting costs and increased stock-based compensation.

Exploration expenses rose to $3.57 million for the first half of 2026 from $0.44 million, while general and administrative costs increased to $2.55 million from $1.72 million. The company had $7.42 million in cash and cash equivalents and working capital of $7.81 million as of June 30, 2026, supported by $6.25 million of financing proceeds from warrant exercises, an at-the-market program and a $4.0 million registered direct offering.

Management states that, as a non-revenue exploration-stage company dependent on external financing, there is substantial doubt about its ability to continue as a going concern, though it plans to use the ATM program to address liquidity. The filing also discloses potential rescission rights related to 8,633 shares issued upon warrant exercise when a prior registration statement was not current.

Positive

  • $6.25 million of cash inflows from financing activities in the first half of 2026 (warrant exercises, ATM sales and a registered direct offering) strengthened the company’s liquidity.
  • Cash and cash equivalents of $7.42 million and working capital of $7.81 million as of June 30, 2026 provide a funding base for the Whistler Project exploration program.

Negative

  • Net loss for the first half of 2026 increased to $6.14 million from $2.20 million a year earlier, with loss from operations rising to $6.22 million.
  • The company discloses substantial doubt about its ability to continue as a going concern due to ongoing losses and reliance on external financing.
  • A deemed dividend of $599,153 from warrant modifications reduced net income available to common shareholders and increased loss attributable to stockholders.
  • Potential rescission claims of approximately $112,229 plus statutory interest may arise from 8,633 shares issued upon warrant exercise while a prior registration statement was not current.

Filing Explained

Existing common holders face a completed share-count increase, while additional ATM issuance remains permitted and the audit chair resignation is pending.

The company reports that its June 26 registered direct offering was completed when $4,000,001 of shares were issued on July 6, 2026, after quarter-end; common shares outstanding were 13,512,860 at June 30, 2026 and 14,035,736 as of August 12, 2026.

Issuing those additional shares increases the total share count and reduces an existing holder’s percentage ownership absent offsetting changes.

The ATM program’s maximum aggregate offering price was increased on July 6, 2026 to approximately $4.2 million, excluding prior ATM sales; this is authorization to sell shares gradually, not disclosure that the full amount has been issued.

Separately, director Aleksandra Bukacheva’s resignation from the board and committee roles, including Audit Committee chair, is effective August 14, 2026.

Net loss, Q2 2026 $4,205,542 Three months ended June 30, 2026
Net loss, first half 2026 $6,135,722 Six months ended June 30, 2026
Exploration expenses, first half 2026 $3,573,184 Six months ended June 30, 2026 vs $443,356 in 2025
General and administrative expenses, first half 2026 $2,548,668 Six months ended June 30, 2026 vs $1,722,175 in 2025
Cash and cash equivalents $7,421,773 Balance as of June 30, 2026
Working capital $7,814,008 As of June 30, 2026
Registered direct offering proceeds $4,000,001 Gross proceeds from June 2026 registered direct offering
Deemed dividends from warrant extensions $599,153 Aggregate incremental fair value recognized in first half 2026
At-the-Market Offering Agreement financial
"entered into an At-the-Market Offering Agreement (the “Sales Agreement”) with a lead agent"
An at-the-market offering agreement lets a public company sell newly issued shares into the open market over time at the current trading price through an appointed broker, rather than all at once. Investors care because it provides the company flexible access to cash but can slowly reduce each existing shareholder’s ownership and put downward pressure on the stock price—like a shop owner quietly adding items for sale to a crowded shelf.
registered direct offering financial
"agreed to issue and sell in a registered direct offering 522,876 newly issued shares"
A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.
net smelter return financial
"2.75 % net smelter return (“NSR”) over all 377 claims and extending"
Net smelter return is the percentage of revenue from selling a mineral or metal that a mining company or project owner receives after deducting costs like refining and transportation. It functions like a share of the profits from the mineral's sale, giving investors an idea of how much money the project generates. This measure helps investors assess the potential profitability of a mining asset.
asset retirement obligation financial
"An asset retirement obligation represents the present value of estimated future costs"
A liability recorded for the future cost to retire, dismantle or clean up a long-lived asset — for example removing an oil rig, closing a mine, or decommissioning a plant. Investors care because it reduces reported profit and ties up capital: companies must estimate and set aside money now for a known future expense, and changes to that estimate can swing earnings, debt ratios and the company’s cash needs much like setting aside savings to repair or return a rented property later.
Restricted Shares financial
"granted awards of an aggregate of 635,000 shares of performance based Restricted Shares"
Restricted shares are company stock that cannot be sold or transferred immediately because they are subject to legal or contractual limits, such as a required holding period or performance conditions. They matter to investors because these locked-up shares can affect a company’s available stock for trading, future dilution, and insider incentives—imagine a gift that can’t be cashed until certain conditions are met, which changes when and how much supply can suddenly enter the market.
emerging growth company regulatory
"As an emerging growth company, we may rely on certain of these exemptions"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
Net loss (Q2 2026) $4,205,542 $3,300,522 decrease vs Q2 2025
Net loss (first half 2026) $6,135,722 $3,939,106 decrease vs first half 2025
Exploration expenses (first half 2026) $3,573,184 $3,129,828 increase vs first half 2025
G&A expenses (first half 2026) $2,548,668 $826,493 increase vs first half 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How much did USGO lose in the quarter ended June 30, 2026?

U.S. GoldMining Inc. reported a net loss of $4.21 million for the quarter ended June 30, 2026, compared with $0.91 million in the prior-year quarter, mainly from sharply higher exploration and general and administrative expenses.

What were U.S. GoldMining Inc. (USGO) exploration expenses in the first half of 2026?

For the six months ended June 30, 2026, exploration expenses totaled $3.57 million, up from $0.44 million in the same period of 2025, largely due to the 2026 Exploration Program at the Whistler Project and earlier commencement of field activities.

What is U.S. GoldMining Inc.’s cash and working capital position as of June 30, 2026?

As of June 30, 2026, U.S. GoldMining Inc. held $7.42 million in cash and cash equivalents and had working capital of $7.81 million, reflecting recent equity financings offset by exploration and administrative spending.

Did U.S. GoldMining Inc. (USGO) raise capital during the first half of 2026?

Yes. During the first half of 2026, the company raised $6.25 million from financing activities, including $1.70 million from warrant exercises, $0.55 million via its at-the-market program, and $4.0 million from a registered direct offering.

Is there a going concern risk disclosed by U.S. GoldMining Inc.?

The company states that recurring losses, lack of revenue, and dependence on external financing raise substantial doubt about its ability to continue as a going concern, though management plans to use its at-the-market program to help address liquidity needs.

What issue did USGO disclose about prior warrant share issuances?

U.S. GoldMining Inc. disclosed that 8,633 shares were issued upon warrant exercise when a prior registration statement prospectus was not current, potentially giving holders rescission rights for about $112,229 plus statutory interest, subject to available exemptions.

How many USGO shares are outstanding and who controls the company?

As of August 12, 2026, U.S. GoldMining Inc. had 14,035,736 common shares outstanding. GoldMining Inc. owned 10,000,751 shares, representing approximately 74.0% of the outstanding shares as of June 30, 2026.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2026

 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _____ to _____

 

Commission File Number: 001-41690

 

U.S. GOLDMINING INC.

(Exact name of registrant as specified in its charter)

 

Nevada   37-1792147
(State or other jurisdiction of incorporation of organization)   (I.R.S. Employer Identification No.)
     
1188 West Georgia Street, Suite 1830, Vancouver, BC, Canada   V6E 4A2
(Address of principal executive offices)   (Zip Code)

 

  (604) 388-9788  
  (Registrant’s telephone number, including area code)  

 

     
  (Former name, former address and former fiscal year, if changed since last report)  

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $0.001 per share   USGO   The Nasdaq Capital Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

☐ Large accelerated filer   ☐ Accelerated filer
Non-accelerated filer   Smaller reporting company
Emerging growth company    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 14,035,736 shares of common stock outstanding as of August 12, 2026.

 

 

 

 
 

 


U.S. GOLDMINING INC.

 

TABLE OF CONTENTS

  

PART I – FINANCIAL INFORMATION 3
  Item 1. Financial Statements 3
  Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 17
  Item 3. Quantitative and Qualitative Disclosures About Market Risk 27
  Item 4. Controls and Procedures 27
PART II – OTHER INFORMATION 28
  Item 1. Legal Proceedings 28
  Item 1A. Risk Factors 28
  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29
  Item 3. Defaults Upon Senior Securities 29
  Item 4. Mine Safety Disclosures 29
  Item 5. Other Information 29
  Item 6. Exhibits 30
SIGNATURES 31

 

2
 

 

PART I – FINANCIAL INFORMATION

 

Item 1.Financial Statements

 

U.S. GOLDMINING INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited – Expressed in U.S. Dollars)

 

 

 

   Notes   June 30, 2026   December 31, 2025 
             
Current assets               
Cash and cash equivalents   3   $7,421,773   $7,377,562 
Restricted cash   3    42,562    43,235 
Other receivables        6,039    56,024 
Inventories        89,119    28,644 
Prepaid expenses   4    592,581    79,639 
Total current assets        8,152,074    7,585,104 
                
Exploration and evaluation assets        31,392    31,392 
Operating lease right-of-use assets, net        72,458    86,224 
Property and equipment, net   5    1,069,545    742,962 
Total assets       $9,325,469   $8,445,682 
                
                
Current liabilities               
Accounts payable       $194,525   $223,821 
Accrued liabilities        112,844    123,914 
Current portion of lease liabilities        30,697    30,221 
Other payables        -    180,863 
Total current liabilities        338,066    558,819 
                
Lease liabilities        40,235    58,171 
Asset retirement obligations   6    244,391    219,582 
Total liabilities        622,692    836,572 
                
Stockholders’ equity               
Capital stock               
Common stock $0.001 par value: 300,000,000 shares authorized as at June 30, 2026 and December 31, 2025; 13,512,860 shares issued and outstanding as at June 30, 2026 and 13,308,985 shares issued and outstanding as at December 31, 2025   9    13,513    13,309 
Additional paid-in capital        41,613,220    37,784,883 
Share issuance obligation   9.1    4,000,001    - 
Accumulated deficit        (36,923,957)   (30,189,082)
Total stockholders’ equity        8,702,777    7,609,110 
Total liabilities and stockholders’ equity       $9,325,469   $8,445,682 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

3
 

 

U.S. GOLDMINING INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited – Expressed in U.S. Dollars)

 

 

 

   Notes            
      Three Months Ended June 30   Six Months Ended June 30 
   Notes  2026   2025   2026   2025 
Operating expenses                       
Exploration expenses  7  $3,041,344   $220,129   $3,573,184   $443,356 
General and administrative expenses  8   1,138,631    666,367    2,548,668    1,722,175 
Accretion      5,453    4,952    10,777    9,787 
Depreciation      47,023    35,436    83,408    70,870 
Total operating expenses      4,232,451    926,884    6,216,037    2,246,188 
Loss from operations      (4,232,451)   (926,884)   (6,216,037)   (2,246,188)
                        
Other income (expenses)                       
Interest income      29,444    29,801    85,354    61,704 
Foreign exchange loss      (2,535)   (7,876)   (5,039)   (8,767)
Net loss for the period before tax     $(4,205,542)  $(904,959)  $(6,135,722)  $(2,193,251)
Current income tax expense      -    (61)   -    (3,365)
Net loss for the period     $(4,205,542)  $(905,020)  $(6,135,722)  $(2,196,616)
                        
Loss per share                       
Basic and diluted  10  $(0.36)  $(0.07)  $(0.50)  $(0.18)
                        
Weighted average shares outstanding                       
Basic and diluted      13,414,299    12,509,273    13,363,375    12,483,779 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

4
 

  

U.S. GOLDMINING INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited – Expressed in U.S. Dollars)

 

 

 

         
   Six Months Ended June 30 
   2026   2025 
Net cash provided by (used in):          
 Net cash provided by (used in): Operating activities            
Operating activities          
Net loss for the period  $(6,135,722)  $(2,196,616)
Adjustments to reconcile net loss to net cash used in operating activities:          
Accretion   10,777    9,787 
Depreciation   83,408    70,870 
Stock-based compensation   857,191    295,065 
Non-cash lease expenses   15,135    23,637 
Changes in operating assets and liabilities          
Inventories   (60,475)   - 
Prepaid expenses   (512,942)   (23,043)
Other receivables   49,985    (16,400)
Accounts payable   (29,296)   14,094 
Accrued liabilities   (71,225)   48,376 
Lease liabilities   (18,829)   (17,943)
Net cash used in operating activities   (5,811,993)   (1,792,173)
           
Investing activities          
Purchase of equipment   (395,959)   - 
Net cash used in investing activities   (395,959)   - 
           
Financing activities          
Proceeds from At-The-Market offering, net of issuance costs   550,790    1,089,099 
Proceeds from common shares issued upon exercise of warrants   1,700,699    - 
Proceeds from registered direct offering   4,000,001    - 
Net cash provided by financing activities   6,251,490    1,089,099 
           
Net change in cash, cash equivalents and restricted cash   43,538    (703,074)
Cash, cash equivalents and restricted cash, beginning of period   7,420,797    3,967,008 
Cash, cash equivalents and restricted cash, end of period  $7,464,335   $3,263,934 

  

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

5
 

 

U.S. GOLDMINING INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited – Expressed in U.S. Dollars)

 

 

 

   Note  Shares                
      Common Stock  

Additional

Paid-In 

  

Share

Issuance

   Accumulated  

Total

Stockholders’

 
   Note  Shares   Amount  

Capital

   Obligation   Deficit   Equity 
Balance at December 31, 2025       13,308,985   $13,309   $37,784,883   $-   $(30,189,082)  $7,609,110 
Common stock                                 
Issued upon vesting of restricted stock units  9.6   5,175    5    (5)   -    -    - 
Issued upon exercise of warrants  9.4   8,333    8    108,321    -    -    108,329 
Stock-based compensation                                 
Amortization of stock-based compensation  9.3, 9.5, 9.6   -    -    454,647    -    -    454,647 
Net loss for the period      -    -    -    -    (1,930,180)   (1,930,180)
Balance at March 31, 2026      13,322,493   $13,322   $38,347,846   $-   $(32,119,262)  $6,241,906 
Common stock                                 
Issued under At-The-Market offering  9.1   47,595    48    567,076    -    -    567,124 
Issuance costs for At-The-Market offering  9.1   -    -    (16,334)   -    -    (16,334)
Issued upon vesting of restricted stock units  9.6   5,175    5    (5)   -    -    - 
Issued upon exercise of warrants  9.4   137,597    138    1,592,232    -    -    1,592,370 
Issuance costs for exercise of warrants  9.4   -    -    (33,959)   -    -    (33,959)
Issuable upon registered direct offering  9.1   -    -    -    4,000,001    -    4,000,001 
Issuance costs for registered direct offering  9.1   -    -    (26,196)   -    -    (26,196)
Stock-based compensation                                 
Amortization of stock-based compensation  9.3, 9.5, 9.6   -    -    402,544    -    -    402,544 
Reversal of other payables      -    -    180,863    -    -    180,863 
Deemed dividends  9.4   -    -    599,153    -    (599,153)   - 
Net loss for the period      -    -    -    -    (4,205,542)   (4,205,542)
Balance at June 30, 2026      13,512,860   $13,513   $41,613,220   $4,000,001   $(36,923,957)  $8,702,777 

 

   Note  Shares             
      Common Stock  

Additional

Paid-In

   Accumulated  

Total

Stockholders’

 
   Note  Shares   Amount  

Capital

   Deficit   Equity  
Balance at December 31, 2024      12,456,815   $12,457   $27,630,696   $(23,198,018)  $4,445,135 
Common stock                            
Issued upon exercise of stock options  9.5   1,596    2    (2)   -    - 
Issued upon vesting of restricted stock units  9.6   3,763    3    (3)   -    - 
Stock-based compensation                            
Amortization of stock-based compensation  9.3, 9.5, 9.6   -    -    172,415    -    172,415 
Net loss for the period      -    -    -    (1,291,596)   (1,291,596)
Balance at March 31, 2025      12,462,174   $12,462   $27,803,106   $(24,489,614)  $3,325,954 
Common stock                            
Issued under At-The-Market offering  9.1   111,422    111    1,122,142    -    1,122,253 
Issuance costs for At-The-Market offering  9.1   -    -    (33,154)   -    (33,154)
Issued upon vesting of restricted stock units  9.6   3,563    4    (4)   -    - 
Stock-based compensation                            
Amortization of stock-based compensation  9.3, 9.5, 9.6   -    -    122,650    -    122,650 
Net loss for the period      -    -    -    (905,020)   (905,020)
Balance at June 30, 2025      12,577,159   $12,577   $29,014,740   $(25,394,634)  $3,632,683 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

6
 

 

U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

Note 1: Business

 

U.S. GoldMining Inc. (the “Company”) was incorporated under the laws of the State of Alaska as “BRI Alaska Corp.” on June 30, 2015. On September 8, 2022, the Company redomiciled from Alaska to Nevada and changed its name to “U.S. GoldMining Inc.” The Company is a subsidiary of GoldMining Inc. (“GoldMining”), a mineral exploration and development company organized under the laws of Canada listed on the Toronto Stock Exchange and NYSE American. GoldMining owns a controlling interest in the Company of 10,000,751 shares of common stock, representing approximately 74.0% of the outstanding shares of the Company as of June 30, 2026.

 

The Company’s common stock is listed on the Nasdaq Capital Market under the symbols “USGO”.

 

The Company is a mineral exploration company with a focus on the exploration and development of a project located in Alaska, USA. The Company’s registered office is 3773 Howard Hughes Pkwy #500s Las Vegas, NV 89169, its principal executive office address is 1188 West Georgia Street, Suite 1830, Vancouver, British Columbia, Canada V6E 4A2 and its head operating office address is 301 Calista Court, Suite 200, Office 203, Anchorage, AK 99518.

 

The Company’s primary asset is the 100%-owned Whistler exploration property (the “Whistler Project”) located in Alaska, USA. Access to the Whistler Project area is by fixed wing aircraft to a gravel airstrip located adjacent to the Whistler Project exploration camp. The Company is undertaking exploration and mining studies to determine whether the Whistler Project contains mineral reserves where extraction is technically feasible and commercially viable and whether the Whistler Project will be mined by open-pit or underground methods.

 

These unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2026 and 2025 have been prepared on a going concern basis, which assumes that the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company is a resource exploration stage company, which does not generate any revenue and has been relying mainly on equity-based financing to fund its operations. For the six months ended June 30, 2026, the Company incurred a net loss of $6,135,722 (June 30, 2025: $2,196,616). The Company will require additional financing through the issuance of shares of Common Stock pursuant to private placements, public offerings, including under the At The Market Offering (the “ATM Program”), and short-term or long-term loans or a combination thereof to meet its administrative costs and to continue to explore and develop the Whistler Project. There is no assurance that sufficient future funding will be available on a timely basis or on terms acceptable to the Company. As such, these events and conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management has a plan, through the use of its ATM Program, to alleviate the substantial doubt of the Company’s ability to continue as a going concern. These unaudited interim condensed consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern, and any such adjustments may be material.

 

Note 2: Summary of Significant Accounting Policies

 

Basis of Presentation

 

The accompanying unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2025. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements include all adjustments that are necessary for a fair presentation of the Company’s interim financial position, operating results and cash flows for the periods presented.

 

7
 

 

U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

 

Consolidation

 

The consolidated financial statements include the financial statements of the Company and US GoldMining Canada Inc., a wholly owned subsidiary of the Company. A subsidiary is consolidated from the date the Company obtains control and continue to be consolidated until the date that control ceases. Control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

 

All inter-company transactions, balances, income and expenses are eliminated through the consolidation process.

 

Management’s Use of Estimates

 

The preparation of these condensed consolidated financial statements in conformity with U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the quarters presented. On an ongoing basis, management evaluates its judgments and estimates in relation to assets, liabilities, income and expenses. Management uses historical experience and various other factors it believes to be reasonable under given circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates under different assumptions and conditions. Significant estimates made by management include, but are not limited to, asset retirement obligations and stock-based compensation.

 

Recently Issued Accounting Pronouncements

 

In November 2024, the FASB issued ASU-2024-03, Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires public entities to disclose specified information about certain costs and expenses at each interim and annual reporting period, which includes amounts for inventory purchases, employee compensation, depreciation, intangible asset amortization, and expenses related to oil and gas activities. This ASU will be effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and related disclosures.

 

Note 3: Cash and Cash Equivalents and Restricted Cash

   

   June 30, 2026   December 31, 2025 
Cash and cash equivalents consist of:          
Cash at bank  $4,421,773   $577,562 
Term deposits   3,000,000    6,800,000 
Total  $7,421,773   $7,377,562 

 

    June 30, 2026    December 31, 2025 
Cash and cash equivalents  $7,421,773   $7,377,562 
Restricted cash   42,562    43,235 
Total cash, cash equivalents and restricted cash  $7,464,335   $7,420,797 

 

Restricted cash relates to term deposits held by the bank as security for corporate credit cards.

  

8
 

 

U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

Note 4: Prepaid Expenses

 

Prepaid expenses consist of the following:

    

   June 30, 2026   December 31, 2025 
Advances(1)  $444,003   $- 
Prepaid insurance   68,699    44,614 
Prepaid dues and subscriptions   40,087    4,663 
Prepaid corporate development expenses   33,307    24,464 
Other prepaid expenses   6,485    5,898 
Total  $592,581   $79,639 

 

(1)Advances relate to the cash advanced to Equity Geoscience Ltd. (“Equity Geoscience”), a technical consulting company for the management of an exploration program for the Whistler Project.

 

Note 5: Property and Equipment

 

Property and equipment consist of the following:

  

   June 30, 2026   December 31, 2025 
   Cost  

Accumulated

Depreciation

  

Net Book

Value

   Cost  

Accumulated

Depreciation

  

Net Book

Value

 
Camp structures  $781,738   $(225,503)  $556,235   $767,706   $(187,117)  $580,589 
Vehicles and hauling equipment   255,766    (104,484)   151,282    174,508    (79,989)   94,519 
Exploration equipment   422,838    (61,385)   361,453    108,137    (41,287)   66,850 
Computer hardware   2,574    (1,999)   575    2,574    (1,570)   1,004 
   $1,462,916   $(393,371)  $1,069,545   $1,052,925   $(309,963)  $742,962 

 

Note 6: Asset Retirement Obligations (the “ARO”)

 

The Whistler Project’s exploration activities are subject to the State of Alaska’s laws and regulations governing the protection of the environment. The Whistler Project ARO is valued under the following assumptions:

  

   June 30, 2026   December 31, 2025 
Undiscounted amount of estimated cash flows  $412,600   $385,600 
Life expectancy (years)   7    8 
Inflation rate   2.00%   2.00%
Discount rate   9.32% to 11.40%    9.32% to 11.40% 

 

The following table summarizes the movements of the Company’s ARO:

  

   June 30, 2026   December 31, 2025 
Balance, beginning of period  $219,582   $199,525 
Accretion   10,777    20,057 
Change in estimate   14,032    - 
Balance, end of period  $244,391   $219,582 

 

9
 

 

U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

Note 7: Exploration Expenses

 

The following table presents costs incurred for exploration activities for the three and six months ended June 30, 2026, and 2025:

  

             
   Three Months Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
Drilling and associated costs  $1,135,944   $1,097   $1,171,318   $25,243 
Consulting fees   653,024    196,600    1,089,914    318,092 
Transportation & travel expenses   550,131    453    567,852    17,000 
Camp and field support expenses   547,966    18,811    584,265    61,878 
Other exploration expenses   154,279    3,168    159,835    21,143 
Total  $3,041,344   $220,129   $3,573,184   $443,356 

 

Note 8: General and Administrative Expenses

 

The following table presents general and administrative expenses for the three and six months ended June 30, 2026, and 2025:

  

             
   Three Months Ended June 30,   Six Months Ended June 30, 
   2026   2025   2026   2025 
Office, consulting, investor relations, insurance and travel(1)  $384,327   $314,266   $989,969   $883,684 
Stock-based compensation   402,544    122,650    857,191    295,065 
Professional fees   162,634    80,261    340,201    256,053 
Management fees, salaries and benefits   122,248    102,669    243,348    196,029 
Filing, listing, dues and subscriptions   66,878    46,521    117,959    91,344 
Total  $1,138,631   $666,367   $2,548,668   $1,722,175 

 

(1)Office, consulting, investor relations, insurance and travel expenses include costs for Blender Media Inc. (“Blender”), a company controlled by a direct family member of a co-chairman and director of GoldMining (Note 13).

 

Note 9: Capital Stock

 

9.1 Equity Financing

 

ATM Program

 

On May 15, 2024, the Company entered into an At The Market Offering Agreement (the “Sales Agreement”) with a lead agent and co-agents (collectively, the “sales agents”) providing for an at-the-market equity sales program. The ATM Program and the related prospectus supplement initially permitted the Company to sell newly issued shares of its Common Stock having an aggregate offering price of up to $5.5 million from time to time through the sales agents subject to the terms of the Sales Agreement. In September 30, 2025, and December 12, 2025, the Company filed prospectus supplements with the SEC to increase the maximum aggregate amount sold under the ATM Program to $7.6 million and $6.1 million, respectively.

 

On June 26, 2026, the Company filed a prospectus supplement reducing the maximum aggregate offering price of Common Stock issuable pursuant to the ATM Program to approximately $2.1 million.

 

On July 6, 2026, the Company filed a prospectus supplement to increase the maximum aggregate offering price of Common Stock issuable pursuant to the ATM Program to approximately $4.2 million, which does not include the Common Stock that were sold pursuant to the ATM Program prior to July 6, 2026, having an aggregate gross sales price of approximately $10.7 million.

 

Sales under the ATM Program may be made directly or through the facilities of the NASDAQ or other active trading market in the United States. A fixed cash commission rate of 2.5% on the gross sales price per share of Common Stock sold under the ATM Program is payable to the agents in connection with any such sales.

 

During the three and six months ended June 30, 2026, the Company sold 47,595 shares of Common Stock, under the ATM Program for gross proceeds of $567,124, with aggregate commissions paid to the agents and other share issuance and settlement costs of $16,334.

 

10
 

 

U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

Registered Direct Offering

 

On June 26, 2026, the Company entered into a securities purchase agreement with an institutional investor, pursuant to which the Company agreed to issue and sell in a registered direct offering 522,876 newly issued shares of its Common Stock, at a purchase price of $7.65 per share. The gross proceeds to the Company from the registered direct offering were $4,000,001. Aggregate issuance costs payable under the registered direct offering were $26,196. The shares were issued to the investor on July 6, 2026.

 

9.2 Common and Preferred Stocks

 

The authorized share capital of the Company is comprised of 300,000,000 shares of common stock with par value of $0.001 and 10,000,000 shares of preferred stock with par value of $0.001.

 

As of June 30, 2026, there were 13,512,860 shares of common stock issued and outstanding and no preferred stock issued and outstanding.

 

9.3 Restricted Shares

 

On September 23, 2022, the Company adopted an equity incentive plan (the “Legacy Incentive Plan”). The Legacy Incentive Plan only provides for the grant of restricted stock awards. The purpose of the Legacy Incentive Plan is to provide an incentive for employees, directors and certain consultants and advisors of the Company or its subsidiaries to remain in the service of the Company or its subsidiaries. The maximum number of shares of common stock that may be issued pursuant to the grant of the restricted stock awards is 1,000,000 shares of common stock in the Company.

 

On September 23, 2022, the Company granted awards of an aggregate of 635,000 shares of performance based restricted shares (the “Restricted Shares”) under the Legacy Incentive Plan to certain of its and GoldMining’s executive officers, directors and consultants, the terms of which were amended on May 4, 2023. These awards are subject to performance-based restrictions, whereby the restrictions will be cancelled if certain performance conditions are met in specified periods. As of June 30, 2026, 254,000 of the 635,000 Restricted Shares remain unvested, with the balance having become vested and no longer subject to restrictions.

 

The unvested Restricted Shares are subject to restrictions that, among other things, prohibit the transfer thereof until certain performance conditions are met. In addition, if such conditions are not met within applicable periods, the restricted shares will be deemed forfeited and surrendered by the holder thereof to the Company without the requirement of any further consideration. The conditions are as follows:

 

(a) with respect to 15% of the Restricted Shares, if the Company has not re-established the Whistler Project camp and performed of a minimum of 10,000 meters of drilling prior to September 30, 2026, pursuant to an amendment to the award terms.
   
(b) with respect to 15% of the Restricted Shares, if the Company has not achieved a $250,000,000 market capitalization, based on the number of shares of its outstanding common stock multiplied by the volume-weighted average price for any applicable five (5) consecutive trading day period on the principal stock exchange on which its common stock is listed prior to the date that is five years after the date of grant of such award; or
   
(c) with respect to 10% of the Restricted Shares, if the Company has not achieved a share price of $25.00 prior to the date that is six years after the date of grant of such award.

 

11
 

 

U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

Upon satisfaction of the conditions referenced in both (b) and (c) above (regardless of whether they occur simultaneously or consecutively), all of the unvested Restricted Shares will be 100% vested and will be deemed Released Stock.

 

In the event the Company files the disclosure specified in Subpart 1300 of the SEC Regulation S-K Report with the SEC or the disclosure specified in Canadian National Instrument 43-101, Standards for Disclosure for Mineral Products, to the relevant Canadian securities regulator (the “Securities Filing”) that includes, in either disclosure, an aggregate estimate of mineral resources for the Whistler Project or any other project owned or operated by the Company of 3,000,000 additional gold or gold equivalent ounces from the amount reported on the disclosure specified in the Company’s Subpart 1300 of the SEC Regulation S-K Report dated September 22, 2022, 190,500 Restricted Shares will be deemed released as of the date of such Securities Filing (or if such amount exceeds the number of shares of Restricted Shares that have not yet become Released Stock at the time, such lesser number of shares of Restricted Shares) reducing, on a proportional basis, the number of unvested shares of Restricted Shares subject to each vesting condition.

 

During the three and six months ended June 30, 2026, the Company recognized stock-based compensation expense of $217,148 and $431,909, respectively ($1,875 and $3,829, respectively, during the three and six months ended June 30, 2025), related to the Restricted Shares.

 

9.4 Stock Purchase Warrants

 

A continuity schedule of the Company’s outstanding common stock purchase warrants for the three and six months ended June 30, 2026, is as follows:

  

  

Number of

Warrants

  

Weighted Average

Exercise Price

  

Weighted Average

Remaining

Contractual Life

(Years)

 
Balance at December 31, 2025   1,740,992   $13.00    0.31 
Exercised   (8,333)   13.00      
Balance at March 31, 2026   1,732,659    13.00    0.07 
Exercised   (447,504)   13.00      
Expired   (1,285,155)   13.00      
Balance at June 30, 2026   -   $-    - 

 

During the three and six months ended June 30, 2026, the Company issued 122,490 shares and 130,823 shares, respectively, of common stock in connection with the exercise of an equal number of warrants. Additionally, during the three and six months ended June 30, 2026, the Company issued 15,107 shares of common stock in connection with the cashless exercise of 325,014 warrants.

 

During the three and six months ended June 30, 2026, the Company extended the expiration date of its outstanding common stock purchase warrants from April 24, 2026, to May 1, 2026, and further extended the expiration date of the warrants from May 1, 2026, to May 11, 2026, and from May 11, 2026, to May 22, 2026. The warrants expired on May 22, 2026, and are no longer outstanding.

 

The incremental fair value resulting from each extension was measured based on the quoted market price of the Company’s publicly traded warrants (“USGOW”) immediately before and after each modification. The aggregate incremental fair value of $599,153 arising from these warrant modifications was recognized as deemed dividends during the six months ended June 30, 2026.

 

12
 

 

U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

9.5 Stock Options

 

On February 6, 2023, the Company adopted a long term incentive plan (“2023 Incentive Plan”). The purpose of the 2023 Incentive Plan is to provide an incentive for employees, directors and certain consultants and advisors of the Company or its subsidiaries to remain in the service of the Company or its subsidiaries. The 2023 Incentive Plan provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock units (the “RSUs”), performance awards, restricted stock awards and other cash and equity-based awards. The aggregate number shares of common stock issuable under the 2023 Incentive Plan in respect of awards shall not exceed 10% of the common stock issued and outstanding.

 

The stock options are exercisable for a period of five years from the date of grant and will vest as follows: (a) 25% on the grant date; and (b) 25% on each of the dates that are six, twelve and eighteen months thereafter. The following table presents, on a weighted-average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant date fair value of stock options granted:

  

       
   Six Months Ended June 30, 
   2026   2025 
Risk Free Interest Rate   3.43%   - 
Expected Life in Years   3.00    - 
Expected Volatility   66.13%   - 
Expected Dividend Yield   0.00%   - 
Estimated forfeiture rate   0.00%   - 

 

The following table summarizes the Company’s stock option activity:

  

  

Number of

Stock Options

  

Weighted Average

Exercise Price

  

Weighted Average

Remaining

Contractual Term

(in years)

 
Balance at December 31, 2025   425,300   $9.79    3.89 
Granted   10,000    11.67      
Forfeited   (5,800)   9.79      
Balance at March 31, 2026   429,500    9.84    3.67 
Balance at June 30, 2026   429,500   $9.84    3.42 

 

As of June 30, 2026, the aggregate intrinsic value under the provisions of ASC 718 of all outstanding stock options was $nil. The unrecognized stock-based compensation expense related to the unvested portion of stock options totaled $173,517 to be recognized over the next 0.73 years.

 

During the three and six months ended June 30, 2026, the Company recognized stock-based compensation expenses of $142,827 and $302,415, respectively ($92,347 and $201,849 respectively, during the three and six months ended June 30, 2025), for the stock options granted.

 

9.6 Restricted Stock Units

 

The Company’s RSUs vest in four equal annual instalments during the recipient’s continual service with the Company. The compensation expense is calculated based on the fair value of each RSU as determined by the closing value of the Company’s common stock at the date of the grant. The Company recognizes compensation expense over the vesting period of the RSUs.

 

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U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

The following table summarizes the Company’s RSUs activity:

  

   Number of RSUs  

Weighted Average

Grant-Date Fair Value

 
Balance at December 31, 2025   19,950   $9.12 
Vested   (5,175)   9.36 
Forfeited   (500)   9.40 
Balance at March 31, 2026   14,275   $9.02 
Vested   (5,175)   9.36 
Balance at June 30, 2026   9,100   $8.83 

 

During the three and six months ended June 30, 2026, the Company recognized stock-based compensation expense of $42,569 and $122,867, respectively ($28,428 and $89,387 respectively, during the three and six months ended June 30, 2025) related to the RSUs.

 

Note 10: Net Loss Per Share

 

The following table provides reconciliation of net loss per share of common stock:

  

             
   Three Months Ended June 30   Six Months Ended June 30 
   2026   2025   2026   2025 
Numerator                
Net loss for the period  $(4,205,542)  $(905,020)  $(6,135,722)  $(2,196,616)
Deemed dividends   (599,153)   -    (599,153)   - 
Net loss attributable to common stockholders  $(4,804,695)  $(905,020)  $(6,734,875)  $(2,196,616)
                     
Denominator                    
Weighted average number of shares, basic and diluted   13,414,299    12,509,273    13,363,375    12,483,779 
                     
Net loss per share, basic and diluted  $(0.36)  $(0.07)  $(0.50)  $(0.18)

 

The basic and diluted net loss per share are the same as the Company is in a net loss position.

 

The Company’s potentially dilutive securities, including stock options (stock options to purchase 429,500 and 293,550 shares of common stock outstanding as of June 30, 2026, and 2025, respectively), RSUs (9,100 and 7,124 RSUs outstanding as of June 30, 2026, and 2025, respectively) and warrants (warrants to purchase nil and 1,740,992 shares of common stock outstanding as of June 30, 2026, and 2025, respectively), have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same.

 

Note 11: Financial Instruments

 

Financial Risk Management Objectives and Policies

 

The financial risks arising from the Company’s operations are credit risk, liquidity risk and currency risk. These risks arise from the normal course of operations and all transactions undertaken are to support the Company’s ability to continue as a going concern. The risks associated with these financial instruments and the policies on how the Company mitigates these risks are set out below. Management manages and monitors these exposures to ensure appropriate measures are implemented in a timely and effective manner.

 

Credit Risk

 

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily associated with its bank balances. The Company mitigates credit risk associated with its bank balances by holding cash and cash equivalents with large, reputable financial institutions.

 

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U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

Liquidity Risk

 

Liquidity risk is the risk that the Company will not be able to settle or manage its obligations associated with financial liabilities. To manage liquidity risk, the Company closely monitors its liquidity position to ensure it has adequate sources of funding to finance its projects and operations. The Company had working capital as of June 30, 2026, of $7,814,008. The Company’s accounts payable, accrued liabilities and current portion of lease liabilities are expected to be realized or settled within a one-year period.

 

The Company has not generated any revenue from operations and the only sources of financing to date have been through advances from GoldMining, its initial public offering, the exercise of stock purchase warrants, the ATM Program and the registered direct offering. The Company’s ability to meet its obligations and finance exploration activities depends on its ability to generate cash flow through the issuance of shares of common stock pursuant to private placements, public offerings, including under the ATM Program, and short-term or long-term loans. Capital markets may not be receptive to offerings of new equity from treasury or debt, whether by way of private placements or public offerings. This may be further complicated by the limited liquidity for the Company’s common stock, restricting access to some institutional investors. The Company’s growth and success is dependent on external sources of financing which may not be available on acceptable terms, or at all.

 

Currency Risk

 

The Company reports its financial statements in U.S. dollars. The Company is exposed to foreign exchange risk when it undertakes transactions and holds assets and liabilities in currencies other than its functional currency. Financial instruments that impact the Company’s net loss due to currency fluctuations include cash and cash equivalents, restricted cash, accounts payable and accrued liabilities which are denominated in Canadian dollars. A 10% change in the exchange rate of U.S. dollars to Canadian dollars would have an impact of approximately $3,193 on net loss for the six months ended June 30, 2026.

 

Note 12: Commitments and Contingencies

 

Payments Required to Maintain the Whistler Project

 

The Company is required to make annual land payments to the Department of Natural Resources of Alaska in the amount of $230,605 in 2026 and thereafter, to keep the Whistler Project in good standing. Additionally, the Company has an annual labor requirement of $135,200 for 2026 and thereafter, for which a cash-in-lieu payment equal to the value of the annual labor requirement may be made instead.

 

Future Commitments

 

The Company has obligations pursuant to underlying agreements on the Whistler Project, as follows:

 

  1. 2.75% net smelter return (“NSR”) over all 377 claims and extending outside the current claims over an Area of Interest defined by the maximum historical extent of claims held on the Whistler Project to Osisko Mining (USA) Inc. (“OM”) pursuant to an Amended and Restated Net Smelter Returns Royalty Deed dated December 16, 2014, granted by Geoinformatics Alaska Exploration Inc. (as assumed by the Company on August 5, 2015) in favor of MF2 LLC (as assumed by OM). Gold Royalty U.S. Corp. holds a right to buy down the royalty percentage from 2.75% to 2.0% upon payment to OM of a one-time payment of $5,000,000. The royalty was subsequently assigned to Nevada Select Royalty, Inc. (a subsidiary of Gold Royalty Corp.).
     
  2. 2.0% net proceeds royalty interest over an Area of Interest specified by standard township sub-division overlying the Whistler Deposit and Raintree West deposit to Sandstorm Gold Ltd. pursuant to an agreement dated October 1, 1999, between the Company (the ultimate successor-in-interest to Kent Turner, Jr.) and Sandstorm Gold Ltd. (the ultimate successor-in interest to Cominco American Incorporated). In October 2025, following the acquisition of Sandstorm Gold Ltd. by Royal Gold, Inc., the interest was transferred to RG Royalties, a wholly owned subsidiary of Royal Gold, Inc.

 

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U.S. GOLDMINING INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited – Expressed in U.S. Dollars)

 

  3. 1.0% NSR over the Whistler Project to Gold Royalty U.S. Corp. pursuant to a Net Smelter Returns Royalty Agreement dated January 11, 2021, between the Company and Gold Royalty U.S. Corp.

 

Note 13: Related Party Transactions

 

The Company shares personnel, including key management personnel, office space, equipment, and various administrative services with other companies, including GoldMining. Costs incurred by GoldMining are allocated between its related subsidiaries based on an estimate of time incurred and use of services and are charged at cost.

 

During the three and six months ended June 30, 2026, the Company incurred $1,125 and $2,152, respectively, and during the three and six months ended June 30, 2025, $2,450 and $3,707, respectively, in general and administrative costs, paid to Blender, a company whose principal is an immediate family member of a co-chairman and director of GoldMining, for information technology, corporate branding, sponsorships and advertising, media, website design, maintenance and hosting services, provided by Blender to the Company.

 

During the three and six months ended June 30, 2026, stock-based compensation costs included $136,786 and $272,069, respectively ($1,182 and $2,418 during the three and six months ended June 30, 2025), in amounts incurred for a co-chairman and director of GoldMining for performance based Restricted Shares granted in September 2022 (Note 9.3).

 

During the three and six months ended June 30, 2026, stock-based compensation costs included $8,549 and $17,004, respectively ($74 and $151 during the three and six months ended June 30, 2025), in amounts incurred for an immediate family member of a co-chairman and director of GoldMining for performance based Restricted Shares granted in September 2022 (Note 9.3).

 

In May 2026, GoldMining exercised 122,490 warrants at a price of $13.00 per warrant for a total consideration of $1,592,370.

 

Related party transactions are based on the amounts agreed to by the parties. During the three months ended June 30, 2026, and 2025, the Company did not enter into any contracts or undertake any commitment or obligation with any related parties other than as described herein.

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

U.S. GoldMining Inc.

 

Management’s Discussion and Analysis

For the three and six months ended June 30, 2026

 

General

 

Unless the context otherwise requires, references to “we”, “us” and “our” refer to U.S. GoldMining Inc., a Nevada corporation, and references to “$” or “dollars” are to United States dollars.

 

You should read this management’s discussion and analysis of our financial condition and results of operations for the three and six months ended June 30, 2026 (the “MD&A”) in conjunction with our unaudited interim condensed consolidated financial statements included in Item 1 of our Quarterly Report on Form 10-Q for the three and six months ended June 30, 2026 (the “Quarterly Report”), as well as our annual consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “Annual Report”), including, in each case, the related notes contained therein.

 

Cautionary Note Regarding Forward-Looking Statements

 

This MD&A includes forward-looking statements and forward-looking information as respectively defined under applicable Canadian securities laws and the Private Securities Litigation Reform Act of 1995, collectively referred to as “forward-looking statements”. Forward-looking statements include statements that relate to our plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs and other information that is not historical information. Forward-looking statements can often be identified by the use of terminology such as “subject to”, “believe”, “anticipate”, “plan”, “target”, “expect”, “intend”, “estimate”, “project”, “outlook”, “may”, “will”, “should”, “would”, “could”, “can”, the negatives thereof, variations thereon and similar expressions, or by discussions of strategy. In addition, any statements that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. In particular, forward-looking statements include, but are not limited to, statements about:

 

  expectations regarding developing the 100%-owned Whistler exploration property located in Alaska, USA (the “Whistler Project”);
  planned activities, including proposed exploration, development and the completion of proposed studies pertaining to the Whistler Project and the goals thereof; and
  estimates regarding future liquidity requirements and the need for additional financing in the future.

 

These forward-looking statements are based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances, including that:

 

  the timing and ability to obtain requisite operational, environmental and other licenses, permits and approvals, including extensions thereof will occur and proceed as expected;
  current gold, silver, base metal and other commodity prices will be sustained, or will improve;
  the proposed development of the Whistler Project will be viable operationally and economically and will proceed as expected;
  any additional financing required by us will be available on reasonable terms or at all; and
  we will not experience any material accident, labor dispute or failure of plant or equipment.

 

Despite a careful process to prepare and review the forward-looking statements, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct.

 

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Forward-looking statements are necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the risk factors described in greater detail under Item 1A. Risk Factors in our Annual Report. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements.

 

These factors should not be construed as exhaustive and should be read with other cautionary statements in this document. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking statements, which speak only as of the date made. The forward-looking statements contained in this document represent our expectations as of the date of this MD&A (or as the date they are otherwise stated to be made) and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

 

Business Overview

 

We are a United States domiciled exploration stage company and our sole project is currently the Whistler Project. The Whistler Project is a gold-copper exploration project located in the Yentna Mining District, approximately 105 miles (170 kilometres) northwest of Anchorage, in Alaska.

 

We are a subsidiary of GoldMining Inc. (“GoldMining”), a company organized under the laws of Canada and listed on the Toronto Stock Exchange and NYSE American. As of the date hereof, GoldMining owns 10,000,751 shares of our common stock, par value $0.001 per share (“Common Stock”), representing 71.3% of the outstanding shares of our Common Stock.

 

Our principal executive offices are located at 1188 West Georgia Street, Suite 1830, Vancouver, British Columbia, Canada V6E 4A2, our registered office is 3773 Howard Hughes Pkwy #500s Las Vegas, NV 89169 and our head operating office is located at 301 Calista Court, Suite 200, Office 203, Anchorage, Alaska, 99518. Our website address is www.usgoldmining.us.

 

Our shares of Common Stock are listed on the Nasdaq Capital Market under the symbol “USGO”.

 

Recent Developments

 

On January 20, 2026, we announced the initial results of our 2025 exploration program.

 

On March 2, 2026, we announced the results of an initial economic assessment (the “PEA”) on the Whistler Project. The PEA is preliminary in nature and there is no certainty that the project envisaged in the PEA will be realized. Further information concerning the PEA is set out in the technical report summary prepared for us titled “Whistler Gold-Copper Project, S-K 1300 Technical Report Summary and Initial Assessment with Economic Analysis, Alaska, United States of America” with a date of issue of March 19, 2026, and an effective date of March 2, 2026, a copy of which is available under our profile at www.sec.gov.

 

On April 20, 2026, we announced our exploration program for the 2026 field season at the Whistler Project (the “2026 Exploration Program”). The 2026 Exploration Program consists of diamond core drilling targeting near-deposit extensions and new targets within the Whistler–Raintree area.

 

On June 26, 2026, we entered into a securities purchase agreement with an institutional investor, pursuant to which we agreed to issue and sell 522,876 shares of our Common Stock at a purchase price of $7.65 per share in the June 2026 Registered Direct Offering (as defined below). Such shares of common stock were issued on July 6, 2026.

 

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On July 6, 2026, we announced the commencement of drilling under our 2026 Exploration Program. The initial assay results are expected by the end of the third quarter of 2026, subject to laboratory turnaround times.

 

At-The-Market Equity Program

 

On May 15, 2024, we entered into an At-the-Market Offering Agreement (the “Sales Agreement”) with a lead agent and co-agents providing for an at-the-market equity sales program (the “ATM Program”). The ATM Program initially allowed us to sell newly issued shares of our Common Stock having an aggregate offering price of up to $5.5 million from time to time through the sales agents subject to the terms thereof. Subsequently, the ATM Program was amended on September 30, 2025, and December 12, 2025, to increase such amount to $7.6 million and $6.1 million, respectively.

 

On June 26, 2026, we filed a prospectus supplement reducing the maximum aggregate offering price of Common Stock issuable pursuant to the ATM Program to approximately $2.1 million.

 

On July 6, 2026, we filed an additional prospectus supplement to increase the maximum aggregate offering price of Common Stock issuable pursuant to the ATM Program to approximately $4.2 million, which does not include the Common Stock that were sold pursuant to the ATM Program prior to July 6, 2026, having an aggregate gross sales price of approximately $10.7 million.

 

Sales under the ATM Program may be made directly or through the facilities of the NASDAQ or other active trading market in the United States. A fixed cash commission rate of 2.5% on the gross sales price per share of Common Stock sold under the ATM Program is payable to the agents in connection with any such sales.

 

During the three and six months ended June 30, 2026, we sold 47,595 shares of Common Stock under the ATM Program for gross proceeds of $567,124, with aggregate commissions paid to the agents and other share issuance and settlement costs of $16,334.

 

June 2026 Registered Direct Offering

 

On June 26, 2026, we entered into a securities purchase agreement with an institutional investor, pursuant to which we agreed to issue and sell in a registered direct offering 522,876 shares of our Common Stock, at a purchase price of $7.65 per share (the “June 2026 Registered Direct Offering”). The aggregate gross proceeds from the registered direct offering were $4,000,001, prior to deducting offering expenses payable by us. Aggregate issuance costs and expenses payable in connection with the registered direct offering were $26,196. The shares were issued to the investor on July 6, 2026.

 

Results of Operations

 

Three months ended June 30, 2026, compared to three months ended June 30, 2025

 

   Three Months Ended June 30 
   2026   2025   Change 
Selected operating results               
Net loss for the period  $(4,205,542)  $(905,020)  $(3,300,522)
Net loss attributable to common stockholders   (4,804,695)   (905,020)   (3,899,675)
Loss from operations   (4,232,451)   (926,884)   (3,305,567)
Exploration expenses   3,041,344    220,129    2,821,215 
General and administrative expenses   1,138,631    666,367    472,264 
Depreciation  $47,023   $35,436   $11,587 

 

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For the three months ended June 30, 2026, we had a net loss of $4.21 million (or $0.31 per share), compared to $0.91 million (or $0.07 per share) for the same period of 2025. The increase was primarily due to higher exploration expenses and general and administrative expenses. During the three months ended June 30, 2026, we recognized a deemed dividend of $599,153 arising from extensions of the expiration date of our outstanding common stock purchase warrants ($nil for the same period of 2025). After giving effect to this deemed dividend, net loss attributable to holders of our Common Stock was $4.81 million (or $0.36 per share), compared to $0.91 million (or $0.07 per share) for the same period of 2025.

 

For the three months ended June 30, 2026, we had exploration expenses of $3.04 million, compared to $0.22 million for the same period of 2025. The increase was primarily attributable to our 2026 Exploration Program at the Whistler Project and the earlier commencement of field activities in April 2026, compared to the 2025 field program, which commenced in July 2025 after the end of the comparative reporting period. During the three months ended June 30, 2026, exploration expenses primarily consisted of:

 

  (i) drilling and associated costs of $1.14 million, compared to $0.00 million for the same period of 2025. Such expenses during the three months ended June 30, 2026, were primarily for the 2026 drilling program at the Whistler Project, which features diamond core drilling focused on high-priority targets within the Whistler-Raintree area.
     
  (ii) third-party consulting fees of $0.65 million, compared to $0.20 million for the same period of 2025. The consulting fees during the three months ended June 30, 2026, were primarily related to the planning and management of our exploration activities at the Whistler Project. In addition, consulting fees to third parties to conduct regulator, community and other stakeholder engagements;
     
  (iii) transportation, travel and other exploration expenses of $0.55 million, compared to $0.00 million for the same period of 2025. Such expenses were primarily for aircraft charter costs to transport crews, equipment and supplies to the Whistler Project, to ensure adequate stocks of equipment and consumables for the 2026 Exploration Program;
     
  (iv) camp and field support expenses of $0.55 million, compared to $0.02 million for the same period of 2025. The expenses during the three months ended June 30, 2026, were primarily for camp costs for the 2026 filed program, including equipment maintenance, camp management labor and supplies for the 2026 Exploration Program, as well as stakeholder engagement to support the Alaska state led future access road; and
     
  (v) other exploration expenses of $0.15 million, compared to $0.00 million for the same period of 2025. Such expenses during this period were primarily related to fuel consumption and equipment rentals in support of the 2026 Exploration Program.

 

For the three months ended June 30, 2026, general and administrative expenses were $1.14 million, compared to $0.67 million for the same period of 2025. During the three months ended June 30, 2026, general and administrative expenditures primarily consisted of:

 

  (i) stock-based compensation expenses of $0.40 million, which consisted of $0.22 million related to the award of restricted shares, $0.18 million related to the fair value of stock options and restricted stock units (“RSUs”) issued by us to management, directors, consultants and employees, compared to $0.12 million for the same period of 2025. The increase was primarily related to performance based restricted shares, following a reassessment in 2025 of the probability of achieving the applicable performance conditions, which resulted in the additional stock-based compensation expenses;
     
  (ii) consulting, corporate development and investor relations expenses of $0.27 million, compared to $0.19 million for the same period of 2025. The increase was primarily attributable to higher digital marketing expenses;

 

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  (iii) professional fees of $0.16 million, compared to $0.08 million for the same period of 2025;
     
  (iv) management fees, salaries and benefits of $0.12 million, compared to $0.10 million for the same period of 2025;
     
  (v) office administrative and insurance expenses of $0.10 million, compared to $0.11 million for the same period of 2025;
     
  (vi) filing, listing, dues and subscriptions expenses of $0.07 million, compared to $0.05 million for the same period of 2025; and
     
  (vii) travel, website design and hosting expenses of $0.02 million, compared to $0.02 million for the same period of 2025.

 

For the three months ended June 30, 2026, depreciation expenses were $0.05 million, compared to $0.04 million in the same period of 2025. The increase was primarily due to depreciation of new equipment acquired during the period.

 

For the three months ended June 30, 2026, our loss from operations was $4.23 million, compared to $0.93 million for the same period of 2025. The increase was primarily related to the increase of exploration expenses and general and administrative expenses.

 

Six months ended June 30, 2026, compared to six months ended June 30, 2025

 

   Six Months Ended June 30 
   2026   2025   Change 
Selected operating results               
Net loss for the period  $(6,135,722)  $(2,196,616)  $(3,939,106)
Net loss attributable to common stockholders   (6,734,875)   (2,196,616)   (4,538,259)
Loss from operations   (6,216,037)   (2,246,188)   (3,969,849)
Exploration expenses   3,573,184    443,356    3,129,828 
General and administrative expenses   2,548,668    1,722,175    826,493 
Depreciation  $83,408   $70,870   $12,538 

 

For the six months ended June 30, 2026, we recorded a net loss of $6.14 million (or $0.46 per share), compared to $2.20 million (or $0.18 per share) for the same period of 2025. The increase was primarily due to higher exploration expenses and general and administrative expenses. During the six months ended June 30, 2026, we recognized a deemed dividend of $599,153 arising from extensions of the expiration date of our outstanding common stock purchase warrants ($nil for the same period of 2025). After giving effect to this deemed dividend, net loss attributable to holders of our Common Stock was $6.73 million (or $0.50 per share), compared to $2.20 million (or $0.18 per share) for the same period of 2025.

 

For the six months ended June 30, 2026, we had exploration expenses of $3.57 million, compared to $0.44 million for the same period of 2025. The increase was primarily attributable to our 2026 Exploration Program at the Whistler Project and the earlier commencement of field activities in April 2026, compared to the 2025 field program, which commenced in July 2025, after the end of the comparative reporting period. During the six months ended June 30, 2026, exploration expenses primarily consisted of:

 

  (i) drilling and associated costs of $1.17 million, compared to $0.03 million for the same period of 2025. In the six months ended June 30, 2026, such expenses were primarily for the 2026 drilling program at the Whistler Project, which features diamond core drilling focused on high-priority targets within the Whistler-Raintree area;

 

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  (ii) third-party consulting fees of $1.09 million, compared to $0.32 million for the same period of 2025. The consulting fees during the six months ended June 30, 2026, were primarily related to the planning and management of our exploration activities at the Whistler Project and the completion of the PEA. In addition, consulting fees to third parties to conduct regulator, community and other stakeholder engagements;
     
  (iii) camp and field support expenses of $0.58 million, compared to $0.06 million for the same period of 2025. The expenses during the six months ended June 30, 2026, were primarily for camp costs for the 2026 field program, including equipment maintenance, camp management labor and supplies for the 2026 Exploration Program, as well as stakeholder engagement to support the Alaska state led future access road;
     
  (iv) transportation and travel expenses of $0.57 million, compared to $0.01 million for the same period of 2025. Such expenses were primarily for aircraft charter costs to transport crews, equipment and supplies to the Whistler Project;
     
  (v) other exploration expenses of $0.16 million, compared to $0.02 million for the same period of 2025. Such expenses during this period were primarily related to fuel consumption and equipment rentals in support of the 2026 Exploration Program.

 

For the six months ended June 30, 2026, general and administrative expenditures were $2.55 million, compared to $1.72 million for the same period of 2025. During the six months ended June 30, 2026, general and administrative expenditures primarily consisted of:

 

  (i) stock-based compensation expenses of $0.86 million, which consisted of $0.43 million related to the award of restricted shares, $0.43 million related to the fair value of stock options and RSUs issued by us to management, directors, consultants and employees, compared to $0.30 million for the same period of 2025. The increase was primarily related to performance based restricted shares, following a reassessment in 2025 of the probability of achieving the applicable performance conditions, which resulted in the additional stock-based compensation expenses;
     
  (ii) consulting, corporate development and investor relations expenses of $0.75 million, compared to $0.63 million for the same period of 2025. The increase was primarily attributable to higher digital marketing expenses;
     
  (iii) professional fees of $0.34 million, compared to $0.26 million for the same period of 2025;
     
  (iv) management fees, salaries and benefits of $0.24 million, compared to $0.20 million for the same period of 2025;
     
  (v) office administrative and insurance expenses of $0.20 million, compared to $0.21 million for the same period of 2025;
     
  (vi) filing, listing, dues and subscriptions expenses of $0.12 million, compared to $0.09 million for the same period of 2025; and
     
  (vii) travel, website design and hosting expenses of $0.04 million, compared to $0.03 million for the same period of 2025.

 

For the six months ended June 30, 2026, depreciation expenses were $0.08 million, compared to $0.07 million in the same period of 2025. The increase was primarily due to depreciation of new equipment acquired during the period.

 

For the six months ended June 30, 2026, our loss from operations was $6.22 million, compared to $2.25 million for the same period of 2025. The increase was primarily related to the increase of exploration expenses and general and administrative expenses.

 

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Liquidity and Capital Resources

 

   As at June 30, 2026   As at December 31, 2025 
Cash and cash equivalents  $7,421,773   $7,377,562 
Working capital(1)   7,814,008    7,026,285 
Total assets   9,325,469    8,445,682 
Total current liabilities   338,066    558,819 
Accounts payable   194,525    223,821 
Accrued liabilities   112,844    123,914 
Total non-current liabilities   284,626    277,753 
Stockholders’ equity  $8,702,777   $7,609,110 

 

  (1) Working capital is the difference between total current assets and total current liabilities.

 

As of June 30, 2026, we had cash and cash equivalents of $7.42 million, compared to $7.38 million as of December 31, 2025. The increase was primarily attributable to proceeds received from the registered direct offering, the exercise of warrants, and the ATM Program, partially offset by general and administrative expenses and exploration expenditures incurred during the six months ended June 30, 2026. As of June 30, 2026, we had total working capital of $7.81 million, compared to $7.03 million as of December 31, 2025.

 

As of June 30, 2026, we had current liabilities of $0.34 million, compared to $0.56 million as of December 31, 2025. Current liabilities as of June 30, 2026, consisted of: (i) accounts payable of $0.20 million, compared to $0.22 million as of December 31, 2025; (ii) accrued liabilities of $0.11 million, compared to $0.13 million as of December 31, 2025; (iii) current portion of lease liabilities of $0.03 million, compared to $0.03 million as of December 31, 2025; and (iv) other payables of $nil, compared to $0.18 million as of December 31, 2025.

 

We are a resource exploration stage company that does not generate any revenue and have relied principally on equity-based financing to fund our operations. The only sources of financing to date have been through advances from GoldMining, our initial public offering (the “IPO”), the exercise of share purchase warrants, our ATM Program and the registered direct offering. For the six months ended June 30, 2026, we incurred a net loss of $6.14 million, and our ability to continue in operation for the foreseeable future and to realize our assets and discharge our liabilities in the normal course of business, including to meet our obligations and finance exploration activities, is dependent on our ability to obtain additional financing. There is no assurance that sufficient future funding will be available on a timely basis or on terms acceptable to us. Among other things, capital markets may not be receptive to offerings of new equity from treasury or debt, whether by way of private placements or public offerings. This may be further complicated by the limited liquidity for our shares of Common Stock, restricting access to some institutional investors. Our growth and success is dependent on external sources of financing, which may not be available on acceptable terms, or at all. As such, these events and conditions raise substantial doubt about our ability to continue as a going concern. Management has a plan, through the use of the ATM Program, to alleviate the substantial doubt about our ability to continue as a going concern. Our unaudited interim condensed consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern, and any such adjustments may be material.

 

As of June 30, 2026, we did not have any off-balance sheet arrangements.

 

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Summary of Cash Flows

 

Operating Activities

 

Net cash used in operating activities during the six months ended June 30, 2026, was $5.81 million, compared to $1.79 million during the same period of 2025. The increase in cash used was primarily due to an increase in operating expenses and an increase in prepaid expenses to $0.59 million, primarily relating to advances made to a third party technical consulting company for the management of the 2026 Exploration Program for the Whistler Project.

 

Net cash used in operating activities was primarily offset by non-cash items including stock-based compensation of $0.86 million, compared to $0.30 million in the same period of 2025; depreciation expenses of $0.08 million, compared to $0.07 million in the same period of 2025. The increase of stock-based compensation in 2026 was primarily related to vesting of stock options and RSUs granted in December 2025; and performance based restricted shares following a reassessment in 2025 of the probability of achieving the applicable performance conditions.

 

Changes in non-cash working capital used cash of $0.64 million for the six months ended June 30, 2026, compared to providing cash of $0.01 million for the six months ended June 30, 2025. The increased use of cash in non-cash working capital was primarily due to $0.44 million in cash advances to a third party technical consulting company for management of the 2026 exploration program for the Whistler Project.

 

Investing Activities

 

Net cash used in investing activities during the six months ended June 30, 2026, was $0.40 million, relating to the purchase of equipment, compared to $nil during the same period of 2025.

 

Financing Activities

 

For the six months ended June 30, 2026, net cash provided by financing activities was $6.25 million, attributable to proceeds of $1.70 million from warrant exercises, proceeds of $4.00 million from the June 2026 Registered Direct Offering and proceeds of $0.55 million from the ATM Program, compared to net cash provided by financing activities of $1.09 million for the same period in 2025, which was entirely attributable to proceeds from the ATM Program.

 

Commitments Required to Keep Whistler Project in Good Standing

 

We are required to make annual land payments to the Department of Natural Resources of Alaska in the amount of $0.23 million in 2026 and thereafter, to keep the Whistler Project in good standing. Additionally, we have an annual labor requirement of $0.14 million for 2026 and thereafter, for which a cash-in-lieu payment equal to the value of the annual labor requirement may be made instead.

 

Future Commitments

 

We have obligations pursuant to underlying agreements on the Whistler Project, as follows:

 

  1. 2.75% net smelter return (“NSR”) over all 377 claims and extending outside the current claims over an Area of Interest defined by the maximum historical extent of claims held on the Whistler Project to Osisko Mining (USA) Inc. (“OM”) pursuant to an Amended and Restated Net Smelter Returns Royalty Deed dated December 16, 2014, granted by Geoinformatics Alaska Exploration Inc. (as assumed by us on August 5, 2015) in favour of MF2 LLC (as assumed by OM). Gold Royalty U.S. Corp. holds a right to buy down the royalty percentage from 2.75% to 2.0% upon payment to OM of a one-time payment of $5 million. The royalty was subsequently assigned to Nevada Select Royalty, Inc. (a subsidiary of Gold Royalty Corp.).
     
  2. 2.0% net proceeds royalty interest over an Area of Interest specified by standard township sub-division overlying the Whistler Deposit and Raintree West deposit to Sandstorm Gold Ltd. pursuant to an agreement dated October 1, 1999, between us (the ultimate successor-in-interest to Kent Turner, Jr.) and Sandstorm Gold Ltd. (the ultimate successor-in-interest to Cominco American Incorporated). In October 2025, following the acquisition of Sandstorm Gold Ltd. by Royal Gold, Inc., the interest was transferred to RG Royalties, a wholly owned subsidiary of Royal Gold, Inc.

 

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  3. 1.0% NSR over the Whistler Project to Gold Royalty U.S. Corp. pursuant to a Net Smelter Returns Royalty Agreement dated January 11, 2021, between us and Gold Royalty U.S. Corp.

 

Transactions with Related Parties

 

During the three and six months ended June 30, 2026, we incurred $1,125 and $2,152, respectively, and during the three and six months ended June 30, 2025, $2,450 and $3,707, respectively, in general and administrative expenses related to website design, video production, website hosting services and marketing services paid to Blender Media Inc. (“Blender”), a company whose principal is an immediate family member of a co-chairman and director of GoldMining. Blender is a design and marketing agency that provides services to numerous publicly traded companies.

 

During the three and six months ended June 30, 2026, stock-based compensation costs related to the vesting of performance based Restricted Shares granted in September 2022 included: (i) $136,786 and $272,069, respectively ($1,182 and $2,418 during the three and six months ended June 30, 2025) for such performance based Restricted Shares granted to the co-chairman and a director of GoldMining; and (ii) $8,549 and $17,004, respectively ($74 and $151 during the three and six months ended June 30, 2025) to an immediate family member of a co-chairman and director of GoldMining.

 

In May 2026, GoldMining exercised 122,490 warrants at a price of $13.00 per warrant for a total consideration of $1,592,370.

 

Related party transactions are recorded based on the amounts agreed to by the parties. During the quarters ended June 30, 2026, and 2025, we did not enter into any contracts or undertake any commitment or obligation with any related parties other than as described herein.

 

Our Audit Committee is charged with reviewing and approving all related party transactions and reviewing and making recommendations to our board of directors or approving any contracts or other transactions with any of our current or former executive officers. The Charter of the Audit Committee sets forth our written policy for the review of related party transactions.

 

Outstanding Securities

 

As of the date of this Quarterly Report, we have 14,035,736 shares of our Common Stock outstanding, including 254,000 performance based Restricted Shares. In addition, we have outstanding stock options issued under our long-term incentive plan to purchase 429,500 shares of our Common Stock at an exercise price of $9.84 per share, and 9,100 outstanding RSUs. The exercise of stock options is at the discretion of their respective holders and, accordingly, there is no assurance that any of the stock options will be exercised in the future.

 

Critical Accounting Estimates and Judgments

 

The preparation of these financial statements in conformity with U.S. GAAP requires management to make judgments and estimates and form assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the year. On an ongoing basis, management evaluates its judgments and estimates in relation to assets, liabilities, income and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates under different assumptions and conditions.

 

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is as follows:

 

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Asset retirement obligation

 

An asset retirement obligation represents the present value of estimated future costs for the rehabilitation of our mineral property. These estimates include assumptions as to the future activities, cost of services, timing of the rehabilitation work to be performed, inflation rates, exchange rates and interest rates. The actual cost to rehabilitate a mineral property may vary from the estimated amounts because there are uncertainties in factors used to estimate the cost and potential changes in regulations or laws governing the rehabilitation of a mineral property. Management periodically reviews the rehabilitation requirements and adjusts the liability as new information becomes available and will assess the impact of new regulations and laws as they are enacted.

 

Restricted Shares and RSUs

 

The fair values of restricted shares and RSUs are measured at the grant date and recognized over the period during which the restricted shares and RSUs vest. When restricted shares are conditional upon the achievement of a performance condition, we estimate the length of the expected vesting period at the grant date, based on the most likely outcome of the performance condition. The fair value of the restricted shares is determined based on the fair value of the shares of Common Stock on the grant date, adjusted for minority stockholder discount, liquidity discount and other applicable factors that are generally recognized by market participants. The fair values of restricted shares and RSUs are recognized as an expense over the vesting period based on the best available estimate of the number of restricted shares and RSUs expected to vest; that estimate will be revised if subsequent information indicates that the number of restricted shares and RSUs expected to vest differs from previous estimates.

 

Stock Options

 

We grant stock options to certain of our directors, officers, employees and consultants. We use the Black-Scholes option-pricing model to determine the grant date fair value of stock options. The fair value of stock options granted to employees is recognized as an expense over the vesting period with a corresponding increase in equity. An individual is classified as an employee when the individual is an employee for legal or tax purposes, provides services that could be provided by a direct employee, or has authority and responsibility for planning, directing and controlling our activities, including nonexecutive directors. The fair value is measured at grant date and recognized over the period during which the options vest. Forfeitures are accounted for as they occur. The Black-Scholes option-pricing model uses as inputs the fair value of our shares of Common Stock and assumptions we make for the volatility of our shares of Common Stock, the expected term of our stock options, the risk-free interest rate for a period that approximates the expected term of our stock options and our expected dividend yield.

 

Recently Issued Accounting Pronouncements

 

In November 2024, the FASB issued ASU-2024-03, Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires public entities to disclose specified information about certain costs and expenses at each interim and annual reporting period, which includes amounts for inventory purchases, employee compensation, depreciation, intangible asset amortization and expenses related to oil and gas activities. This ASU will be effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures.

 

JOBS Act

 

In April 2012 the JOBS Act was enacted. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.

 

We continue the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements under the JOBS Act. Subject to certain conditions, as an emerging growth company, we may rely on certain of these exemptions, including without limitation, providing an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act. We will remain an emerging growth company until the earlier of: (i) the last day of the fiscal year in which we have total annual gross revenue of $1.235 billion or more; (ii) the last day of the fiscal year following the fifth anniversary of the date of the completion of our IPO; (iii) the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under the rules of the SEC.

 

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Item 3.Quantitative and Qualitative Disclosures About Market Risk

 

We are a smaller reporting company as defined by Rule 12b-2 of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are not required to provide the information under this item.

 

Item 4.Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our management, with the participation of our Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”) and, as of June 30, 2026, our Principal Executive Officer and Principal Financial Officer have concluded that, as of the end of the period covered by this MD&A, our disclosure controls and procedures were effective. It should be noted that any system of controls is based in part upon certain assumptions designed to obtain reasonable (and not absolute) assurance as to its effectiveness, and there can be no assurance that any design will succeed in achieving its stated goals.

 

Changes in Internal Control over Financial Reporting

 

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our last completed fiscal quarter, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

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PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not currently a party to any material proceedings. Regardless of outcome, such proceedings or claims can have an adverse impact on us because of defense and settlement costs, diversion of resources and other factors, and there can be no assurances that favorable outcomes will be obtained.

 

Item 1A.  Risk Factors

 

The following description of risk factors includes any material changes to, and supersedes the description of, risk factors associated with our business, financial condition and results of operations previously disclosed in “Item 1A. Risk Factors” of our Annual Report for the year ended December 31, 2025 on Form 10-K. Our business, financial condition and operating results can be affected by a number of factors, whether currently known or unknown, including but not limited to those described below, any one or more of which could, directly or indirectly, cause our actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect our business, financial condition, operating results and stock price.

 

The following discussion of risk factors contains forward-looking statements. These risk factors may be important to understanding other statements in this Form 10-Q. The following information should be read in conjunction with the unaudited condensed consolidated financial statements and related notes in Part I, Item 1, “Financial Statements” and Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Form 10-Q.

 

The issuance of shares of common stock upon exercise of warrants during a period in which our registration statement on Form S-1 (Registration No. 333-269693) (the “Prior Registration Statement”) was not current may not have been in compliance with Section 5 of the Securities Act of 1933, as amended, which could give rise to rescission rights or other claims by holders of such shares.

 

Between March 1, 2024, the date on which the prospectus contained in our Prior Registration Statement was not current under Section 10(a)(3) of the Securities Act of 1933, as amended, and May 15, 2026, the date on which we implemented corrective measures with our transfer agent, 8,633 shares of our common stock (the “Affected Warrant Shares”) were issued upon exercise of our warrants without a restrictive legend for aggregate cash proceeds of $112,229. The Affected Warrant Shares were issued inadvertently, as the Company had not identified at the time of such exercises that the prospectus contained in the Prior Registration Statement was no longer current under Section 10(a)(3) of the Securities Act of 1933, as amended. Because the prospectus was not current at the time of the exercises described above, these issuances may not have been made in compliance with Section 5 of the Securities Act of 1933, as amended. As a result, holders of the Affected Warrant Shares may have rescission rights under Section 12(a)(1) of the Securities Act of 1933, as amended, which would entitle such holders to tender the Affected Warrant Shares back to us in exchange for a refund of the exercise price paid, which would be an aggregate amount of approximately $112,229, plus statutory interest. In addition, we could become subject to regulatory action by the SEC or other regulatory authorities in connection with any such non-compliance.

 

We do not intend to conduct a rescission offer as it would be impractical and we believe that the Affected Warrant Shares may have been issued pursuant to valid exemptions from registration. Of the 8,633 Affected Warrant Shares that were issued without an effective registration statement, 7,600 shares were issued to a director, who is an accredited investor and continues to hold those shares which have now been re-classified as restricted securities. We believe that these shares were able to have been issued pursuant to an exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, in accordance with Rule 506 of Regulation D. The remaining 1,033 Affected Warrant Shares were issued upon the exercise of warrants held in “street name” through The Depository Trust Company (“DTC”). Because such warrants were held through DTC and its participating brokers and other financial intermediaries, we have no visibility into, and no practical means of ascertaining, the identity of the beneficial holders of those shares, and we have no mechanism to compel DTC or its participants to disclose such information. Accordingly, we are unable to identify the holders of the remaining 1,033 Affected Warrant Shares or to determine whether such shares continue to be held or have been sold. In addition, we believe that the issuance of these shares may have been exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Sections 4(a)(1) and 4(a)(2) thereof. We believe that the actual exercise of the warrants may not have constituted a public offering and any resales of such shares may have been exempt to the extent such warrant holders were neither an underwriter nor a dealer.

 

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However, no assurance can be given that investors will not bring an action against us seeking the rescission of their paid exercise prices or that we will be able to successfully establish that all Affected Warrant Shares were issued to valid exemptions from registration.

 

Any potential Section 5 violation does not render the underlying shares void or legally defective. The 8,633 Affected Warrant Shares were duly authorized, validly issued, fully paid, and non-assessable upon exercise of the warrants and are legally issued and outstanding shares of common stock, subject to the applicable transfer restrictions referenced above with respect to the shares held by our director.

 

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

 

There were no unregistered sales of the Company’s equity securities during the six months ended June 30, 2026, other than those previously reported in a Current Report on Form 8-K except as set forth below:

 

Between March 1, 2024, the date on which the prospectus contained in our Prior Registration Statement was not current under Section 10(a)(3) of the Securities Act of 1933, as amended, and May 15, 2026, the date on which we implemented corrective measures with our transfer agent, 8,633 Affected Warrant Shares were issued upon exercise of our warrants without a restrictive legend for aggregate cash proceeds of $112,229.

 

Item 3.  Defaults Upon Senior Securities

 

None.

 

Item 4.  Mine Safety Disclosures

 

Not applicable.

 

Item 5.  Other Information

 

Resignation of Director

 

On August 11, 2026, Aleksandra Bukacheva notified the Company of her resignation as a member of the Company’s Board of Directors, including as a member of the Nominating and Corporate Governance Committee and the Compensation Committee, and as the Chairperson of the Audit Committee, effective as of August 14, 2026. Her resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.

 

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Item 6.  Exhibits

 

The following exhibits are included with this Quarterly Report:

 

Exhibit   Description of Exhibit
10.1   Form of Securities Purchase Agreement, dated June 26, 2026, by and among the Company and the investor signatory thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on June 29, 2026).
     
31.1*   Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
31.2*   Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
32.1**   Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Exchange Act Rules 13a-14(b) and 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
99.1  

Amendment to Warrant Agency Agreement, dated as of April 23, 2026, by and between U.S. GoldMining Inc. and Continental Stock Transfer & Trust Company, as warrant agent (incorporated by reference to Exhibit 99.1 to the Company’s Current Report on Form 8-K filed on April 23, 2026).

     
101.INS*   XBRL Instance Document
     
101.SCH*   XBRL Taxonomy Extension Schema Document
     
101.CAL*   XBRL Taxonomy Extension Calculation Linkbase Document
     
101.DEF*   XBRL Taxonomy Extension Definitions Linkbase Document
     
101.LAB*   XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE*   XBRL Taxonomy Extension Presentation Linkbase Document
     
104*   Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

 

* Filed herewith

** Furnished herewith

 

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SIGNATURES

 

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.

 

  U.S. GOLDMINING INC.
     
Date: August 12, 2026 By: /s/ Tim Smith
    Tim Smith
    President, Chief Executive Officer (Principal Executive Officer)
     
Date: August 12, 2026 By: /s/ Tyler Wong
    Tyler Wong
    Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

 

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