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Prismo Metals Inc. Management Reports 2025
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Management Reports
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PRISMO METALS INC.
(An Exploration Stage Company)
Management's Discussion and Analysis (MD&A)
Quarterly Highlights
Three Months Ended March 31, 2025
(Expressed in Canadian Dollars)
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
The following interim Management's Discussion and Analysis ("Interim MD&A") of Prismo Metals Inc. (the "Company" or "Prismo") for the three months ended March 31, 2025 has been prepared to provide material updates to the business operations, liquidity and capital resources of the Company since its last annual management discussion & analysis, being the Management's Discussion & Analysis ("Annual MD&A") for the year ended December 31, 2024. This Interim MD&A does not provide a general update to the Annual MD&A, or reflect any non-material events since the date of the Annual MD&A.
This Interim MD&A has been prepared in compliance with section 2.2.1 of Form 51-102F1, in accordance with National Instrument 51-102 – Continuous Disclosure Obligations. This discussion should be read in conjunction with the Annual MD&A, audited annual consolidated financial statements of the Company for the year ended December 31, 2024 and 2023, together with the notes thereto, and unaudited condensed interim consolidated financial statements of the Company for the three months ended March 31, 2025, together with the notes thereto. Results are reported in Canadian dollars, unless otherwise noted. The Company's unaudited condensed interim consolidated financial statements and the financial information contained in this Interim MD&A are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and interpretations of the IFRS Interpretations Committee. The unaudited condensed interim consolidated financial statements have been prepared in accordance with International Standard 34, Interim Financial Reporting. Accordingly, information contained herein is presented as of May 30, 2025, unless otherwise indicated.
For the purposes of preparing this Interim MD&A, management, in conjunction with the Board of Directors (the "Board"), considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of the Company common shares; (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the total mix of information available to investors. Management, in conjunction with the Board, evaluates materiality with reference to all relevant circumstances, including potential market sensitivity.
This Interim MD&A contains forward-looking information as further described in the "Cautionary Note Regarding Forward-Looking Statements" at the end of this Interim MD&A. Please also make reference to those risk factors identified or otherwise indirectly referenced in the "Risks and Uncertainties" section below.
This Interim MD&A contains forward-looking information as further described in the "Cautionary Note Regarding Forward-Looking Statements" at the end of this Interim MD&A. Please also make reference to those risk factors identified or otherwise indirectly referenced in the "Risks and Uncertainties" section below.
Description of Business and Nature of Operations
Prismo Metals Inc. was incorporated under the provisions of the Canada Business Corporations Act on October 17, 2018, as 11047612 Canada Inc., renamed as Prismo Metals Inc. on November 1, 2018, and registered as an extra-provincial corporation under the laws of the Province of British Columbia on November 6, 2018.
The Company is in the business of acquisition, exploration, and development of mineral properties, and is in one operating segment, namely mineral exploration in Mexico and Arizona, USA.
Financial and Operating Highlights
During the three months ended March 31, 2025, 125,000 RSUs were settled through the issuance of common shares.
On February 24, 2025, the Company announced the granted 250,000 stock options to a consultant of the Company. The stock options are each exercisable to purchase one common share at an exercise price of $0.12 for a period of two years. The stock options will vest as of 25% vesting immediately and 25% every three months thereafter.
On February 24, 2025, the Company announced that it provided Minera Cascabel with a notice of termination of the Option Agreement dated October 11th, 2019 in respect of the Los Pavitos project. In the current market conditions Prismo is not in a position to support this project and considering the ongoing funding requirement just to hold the property, it was decided that terminating the option was the best course of action.
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
On March 10, 2025, the Company completed debt settlement transactions with certain creditors of the Company, pursuant to which the Company issued to the creditors an aggregate of 4,451,175 common shares of the Company at issue prices ranging from $0.075 to $0.23 per common share in full and final settlement of accrued and outstanding indebtedness in the aggregate amount of approximately $464,409.
Outlook
The Company intends to continue exploring properties that have the potential to contain precious metals in its properties located in Mexico and base metals in its property located in Arizona, USA. In addition, management will review project submissions, and conduct independent research, for projects in such jurisdictions and commodities as it may consider prospective. In our forward planning for the 2025 year, we recognized that economic uncertainties and market challenges are factors that need to be considered.
Trends and Economic Conditions
- Prices of minerals are extremely volatile and there are times when there is very limited availability of equity financing for the purposes of mineral exploration and development.
- The Company's future performance is largely tied to the outcome of future drilling results and the overall financial markets; and
- Current financial markets are likely to be volatile in Canada for the calendar 2025, reflecting ongoing economic concerns due to, among other things, inflation, the imposition or threatened imposition of tariffs by the President of the United States, and the war in Ukraine and overseas. The actual and perceived impacts of these and other macro influences may have a material adverse effect on the global economy and on the stock market, including trading prices of the Company's shares and its ability to raise new capital. Companies worldwide have been negatively affected by these trends. As a result, the Company may have difficulties raising equity financing for the purposes of base and precious metals exploration and development, particularly without excessively diluting the interest of current shareholders of the Company.
These trends may limit the Company's ability to discover and develop an economically viable mineral deposit. See "Cautionary Note Regarding Forward-Looking Statements" and "Risk and Uncertainties" below.
Financial Highlights
Three months ended March 31, 2025, compared with three months ended March 31, 2024
The Company's net loss totaled $83,102 for the three months ended March 31, 2025, with basic and diluted loss per share of $0.00. This compares with a net loss of $57,194 with basic and diluted loss per share of $0.00 for the three months ended March 31, 2024. The increase in net loss of $25,908 was principally due to:
- The Company recorded a realized gain on marketable securities of $26,424 for the three months ended March 31, 2025, compared to a realized gain of $60,180 for the same period in 2024. The decrease in realized gain was primarily due to a lower volume of common shares of Vizsla sold during the current period.
- The loss on settlement of debt increased to $219,594 for the three months ended March 31, 2025, compared to $nil for the same period in the prior year. The loss resulted from the settlement of outstanding liabilities through the issuance of common shares, where the carrying amount of the debt exceeded the fair value of the shares issued.
- Share-based payments increased to $103,704 for the three months ended March 31, 2025, compared to $66,065 in the prior period. The increase is primarily due to the timing of expense recognition related to the estimated fair value of stock options, share appreciation rights (SARs), and restricted share units (RSUs) granted in both current and prior periods. The Company recognizes share-based payment expenses in accordance with the vesting schedules of the respective awards, which may result in fluctuations in expense from year to year depending on the volume, timing, and terms of the grants.
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
- All other expenses were related to general working capital purposes.
Liquidity and Capital Resources
From management's point of view, the Company has cash of $3,504 as of March 31, 2025, and additional financing will be required to fund future exploration and to cover current expenditures.
The Company may, from time to time, when marketing and financing conditions are favourable, proceed with fundraising to fund exploration and property acquisition projects.
The activities of the Company, principally the acquisition and exploration of properties that have the potential to contain precious and base metals, are financed through the completion of equity transactions such as equity offerings and the exercise of stock options. There is no assurance that equity capital will be available to the Company in the future in the amounts or at the times desired or on terms that are acceptable to the Company, if at all. See "Risk and Uncertainties" below.
As of March 31, 2025, and to the date of this Interim MD&A, the cash resources of the Company are held with certain Canadian chartered banks.
Regardless of whether the Company discovers a significant silver deposit, given its working capital deficit of $1,115,327 as of March 31, 2025, it is anticipated that the Company would need to inject funds for it to continue operations for the twelve-month period ending December 31, 2025.
Additional financing will be required to fund future exploration and for working capital purposes.
Most of the Company's requirements for capital to maintain its ownership level in its properties, as well as pay for exploration expenditures and administrative expenses have been met through the completion of private placements and the exercise of stock options and warrants. Typically, these monies have come from institutional and high net worth investors and the amounts raised have been a function of the level of market interest in the junior resource industry as well as the general level of interest in the equity and mineral commodity markets. The Company will have to rely on further equity financings to maintain an adequate liquidity base with which to support its general operations and exploration and development mandate.
The mineral exploration business is risky and most exploration projects will not become mines. The Company may offer other mining companies the opportunity to acquire interests in any of its properties in return for funding by such companies of all or part of the exploration and development of such properties. For the funding of any property acquisitions or exploration conducted by the Company; the Company depends on the issue of shares from treasury to investors. Such financing will depend, in turn, on various factors, such as a positive mineral exploration climate, positive stock market conditions, the Company's track record and the experience of management. If such financing is unavailable for any reason, the Company may become unable to retain its mineral interests and carry out its business plan. The Company will have to seek additional financing in order to sustain its operations for the next year. The longer-term ability of the Company to continue its business is dependent on the continuing success of its exploration programs coupled with available funding through sale of its share capital.
Cash Flows
As of March 31, 2025, the Company had cash of $3,504. The decrease in cash of $3,680 from December 31, 2024 cash balance of $7,184 was a result of cash outflows in operating activities of $115,083 and cash inflows in investing activities of $111,403.
Operating activities were affected by adjustments of realized gain on marketable securities of $26,424, share-based payments of $103,704, loss on settlement of debt of $219,594 and net change in non-cash working capital balances of $110,333 because of a decrease in receivables of $852, a decrease in prepaid expenses of $45,034, a decrease in accounts payable and accrued liabilities of $81,991 and a decrease in due to related parties of $17,544.
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
Cash provided by investing activities was $111,403 for the three months ended March 31, 2025. This cash related to proceeds from sale of marketable securities of $153,513 which was offset by cash used for exploration and evaluation assets of $42,110.
The Company continues to monitor its cash resources closely and is evaluating financing and strategic options to support ongoing operations and exploration activities.
Mineral Properties Update
Mineral Properties
The Company has option agreements with respect to one mineral exploration project in Mexico (Palos Verdes), and one mineral exploration project in Arizona, USA, as follows:
a) Palos Verdes project
Palos Verdes is an intermediate stage exploration project located about 65km northeast of Mazatlán in Sinaloa State, Mexico and is accessed via the interstate highway from Mazatlán to Durango near the village of Santa Lucía. The property consists of one concession, Palos Verdes, comprising 22.7707 hectares (the “Palos Verdes Property”). The Palos Verdes Property is within the Pánuco-Copala mining district, a historically important mining area in the region. Numerous small mines and prospects are located in the region with several intermittently active mines and mills. The district is known for precious- and base-metal bearing epithermal veins.
On May 7, 2019, the Company entered into an option agreement with Prospeccion Y Desarrollo Minero Del Norte, S.A. de C.V., a company incorporated under the laws of Mexico (“ProDeMin”) and carrying mineral exploration contracting activities and controlled by the CXO of the Company (the “ProDeMin Option”) to earn up to 75% interest in the Palos Verdes Property. On November 30, 2020, the Company entered into an option agreement with the underlying owner of the remaining 25% of the Palos Verdes Property (the “Palos Verdes 25% Agreement”), thus securing the possibility of earning up to 100% interest in the property.
On November 24, 2022, the Company announced that Vizsla signed an LOI to complete a strategic investment in Prismo, including a first right of refusal on the Palos Verdes concession. The Strategic Investment would include a cash payment of 500,000 and issuance of $1.5 million in Vizsla shares for 4,000,000 units of Prismo, with each unit consisting of one share and one half of one purchase warrant. This agreement also contemplated the formation of a joint Technical Committee consisting of one member of each company and one additional member acceptable to both parties. The agreement also gives Vizsla the right to nominate one director to Prismo’s board of directors and allows for Vizsla to maintain its percentage equity position with future financing.
On December 12, 2022, the Company closed a brokered private placement of $3,016,000, consisting of 5,800,000 units at a price of $0.52. Each unit consisted of one common share and one half of a common share purchase warrant exercisable at a price of $0.75 for three years following the closing.
On January 9, 2023, the Company signed the definitive Strategic Investment agreement with Vizsla.
Drilling of several campaigns at Palos Verdes has intersected what the Company believes is the upper part of a mineralized shoot typical of the veins in the Panuco district. Bonanza grade intercepts have been reported, including the exceptional interval of 3,100 g/t Ag, 102 g/t Au (11,520 g/t Ag equivalent) over 0.5 m in hole PV-25, and 2336 g/t Ag with 8.42 g/t Au and 2.46% Zn (3,205 g/t Ag equivalent) over 1.15 m in hole PV-02. Work completed in 2023 indicates that this mineralized body may be cut off and down dropped along a fault on the east.
On February 6, 2024, the Company announced a plan to conduct a deeper drill program from adjoining ground controlled by its Strategic Investment Partner Vizsla Silver to test for the extension of high-grade mineralization encountered at shallow depths as well as the possible down dropped extension of this body to the northeast. On July 31, 2024, the
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
Company announced mobilization of a crew to the site to begin preparations for the drill program. Drilling commenced on September 24, 2024. Two holes were completed from remote site PV005 to drill downdip from the high-grade mineralized body drilled previously: PV-24-34 was drilled to a depth of 286.5 meters and hole PV-24-35 was drilled to a depth of 318.0 meters. The program was curtailed in late November after slow advances and budgetary considerations. Assays from the latest drilling are pending.
The Company has undertaken several drill campaigns at the project and a total of about 6,052 meters has been drilled in 33 holes to date, including 5 holes drilled by ProDeMin in 2018, shown in the table below.
Table 1. Drill hole data for past drilling and Prismo's drill holes.
| Hole | Easting | Northing | Elev. | Azimuth | Inclination | Depth (m) |
|---|---|---|---|---|---|---|
| PV-18-01 | 413,759 | 2,593,160 | 1,222 | 318 | -50° | 80.00 |
| PV-18-02 | 413,762 | 2,593,161 | 1,222 | 318 | -75° | 120.10 |
| PV-18-03 | 413,762 | 2,593,160 | 1,222 | 280 | -45° | 63.00 |
| PV-18-04 | 413,759 | 2,593,160 | 1,222 | 270 | -65° | 100.00 |
| PV-18-05 | 413,607 | 2,593,040 | 1,257 | 335 | -60° | 94.00 |
| 2020 drill campaign | ||||||
| PV-20-06 | 413,767 | 2,593,146 | 1,207 | 330 | -75° | 101.40 |
| PV-20-07 | 413,768 | 2,593,146 | 1,207 | 355 | -60° | 104.40 |
| PV-20-08 | 413,765 | 2,593,098 | 1,208 | 345 | -60° | 125.40 |
| PV-20-09 | 413,764 | 2,593,099 | 1,208 | 330 | -50° | 107.40 |
| PV-20-10 | 413,597 | 2,592,994 | 1,240 | 10 | -55° | 134.40 |
| 2022 drill campaign | ||||||
| PV-22-11 | 413,761 | 2,593,096 | 1,209 | 355 | -82 | 393.00 |
| PV-22-12 | 413,759 | 2,593,095 | 1,209 | 325 | -75 | 207.00 |
| PV-22-13 | 413,758 | 2,593,094 | 1,209 | 300 | -80 | 300.00 |
| PV-22-14 | 413,610 | 2,529,919 | 1,230 | 330 | -75 | 303.00 |
| PV-22-15 | 413,607 | 2,529,918 | 1,230 | 15 | -80 | 337.50 |
| PV-22-16 | 413,767 | 2,593,098 | 1,209 | 70 | -60 | 288.00 |
| PV-22-17 | 413,765 | 2,593,148 | 1,205 | 340 | -50 | 115.00 |
| PV-22-18 | 413,770 | 2,593,149 | 1,205 | 40 | -50 | 156.00 |
| 2023 drill campaign | ||||||
| PV-23-19 | 414,023 | 2,593,310 | 1,313 | 326 | -44 | 93.00 |
| PV-23-20 | 414,049 | 2,593,296 | 1,296 | 324 | -59 | 201.00 |
| PV-23-21 | 414,004 | 2,593,260 | 1,294 | 330 | -45 | 160.00 |
| PV-23-22 | 414,008 | 2,593,262 | 1,294 | 330 | -60 | 129.00 |
| PV-23-23 | 413,963 | 2,593,219 | 1,261 | 300 | -45 | 144.00 |
| PV-23-24 | 413,806 | 2,593,118 | 1,226 | 315 | -70 | 201.00 |
| PV-23-25 | 413806 | 2593083 | 1236 | 320 | -68 | 258.00 |
| PV-23-26 | 413,807 | 2,593,082 | 1,236 | 10 | -45 | 327.00 |
| PV-23-27 | 413,814 | 2,593,082 | 1,226 | 320 | -75 | 234.00 |
| PV-23-28 | 413,801 | 2,593,136 | 1,244 | 35 | -60 | 117.00 |
| PV-23-29 | 413,735 | 2,593,073 | 1,216 | 330 | -75 | 183.00 |
| PV-23-30 | 413,707 | 2,592,990 | 1,202 | 330 | -50 | 180.00 |
| PV-23-31 | 413,709 | 2,592,990 | 1,200 | 330 | -75 | 246.00 |
| PV-23-32 | 413,677 | 2,592,942 | 1,211 | 315 | -50 | 199.50 |
| PV-23-33 | 413,678 | 2,592,938 | 1,216 | 330 | -75 | 250.50 |
Coordinates in UTM WGS84 from a handheld GPS
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
The results of the Company's drilling are shown in the following table, along with the results from the previous drilling by ProDeMin.
Assay highlights for holes drilled at the Palos Verdes Project
| Hole | From (m) | To (m) | Width (m) | Est True width (m) | Au (g/t) | Ag (g/t) | Cu (%) | Pb (%) | Zn (%) | Ag eq g/t |
|---|---|---|---|---|---|---|---|---|---|---|
| ProDeMin holes (previously released) | ||||||||||
| PV-01 | 23.90 | 28.80 | 4.90 | 4.2 | 0.89 | 31 | 0.21 | 0.30 | 2.63 | 228 |
| PV-02 | 40.35 | 48.70 | 8.35 | 5.5 | 1.69 | 474 | 0.54 | 1.09 | 3.84 | 840 |
| incl. | 45.25 | 48.70 | 3.45 | 2.3 | 3.75 | 1098 | 0.67 | 1.99 | 3.00 | 1,650 |
| incl. | 46.55 | 47.70 | 1.15 | 0.8 | 8.42 | 2336 | 0.27 | 1.72 | 2.46 | 3,205 |
| PV-03 | 31.30 | 40.65 | 9.35 | 7.0 | 1.45 | 15 | 0.05 | 0.11 | 1.04 | 180 |
| incl. | 39.55 | 40.65 | 1.10 | 0.8 | 12.15 | 50 | 0.26 | 0.53 | 5.01 | 1,280 |
| PV-04 | 55.45 | 59.00 | 3.55 | 3.0 | 0.12 | 37 | 0.31 | 0.12 | 0.74 | 111 |
| PV-05 | 54.25 | 57.40 | 3.15 | 2.0 | 0.25 | 23 | 0.06 | 0.32 | 0.62 | 82 |
| Prismo holes | ||||||||||
| PV-06 | 70.55 | 75.85 | 5.3 | 3.2 | 0.13 | 69 | 0.14 | 0.12 | 0.29 | 108 |
| 75.00 | 75.85 | 0.85 | 0.5 | 0.46 | 317 | 0.12 | 0.09 | 0.21 | 378 | |
| PV-08 | 92.70 | 96.05 | 3.35 | 2.5 | 0.24 | 17 | 0.09 | 0.19 | 0.58 | 73 |
| 92.70 | 93.65 | 0.95 | 0.7 | 0.55 | 37 | 0.24 | 0.61 | 1.21 | 169 | |
| PV-09 | 87.10 | 88.95 | 1.85 | 1.3 | 0.73 | 38 | 0.19 | 0.61 | 3.89 | 270 |
| PV-10 | 125.30 | 126.50 | 1.20 | 0.9 | 0.03 | 6 | 0.06 | 0.03 | 1.4 | 77 |
| PV-11 | 114.85 | 115.55 | 0.7 | 0.42 | 4.18 | 207 | 0.02 | 0.02 | 0.02 | 553 |
| PV-12 | 117.9 | 118.8 | 0.9 | 0.54 | 3.18 | 13 | 0.01 | - | - | 276 |
| PV-13 | 118.5 | 120.0 | 1.5 | 0.9 | 0.66 | 93 | - | - | - | 148 |
| PV-14 | 165.0 | 172.2 | 7.2 | 4.3 | 0.06 | 21 | 0.08 | 0.49 | 0.85 | 77 |
| Incl | 169.4 | 171.0 | 1.6 | 2.5 | 0.07 | 28 | 0.12 | 0.52 | 1.01 | 88 |
| 179.9 | 184.2 | 4.3 | 2.6 | 0.03 | 27 | 0.41 | 0.81 | 1.01 | 92 | |
| 193.0 | 195.9 | 2.9 | 1.7 | 0.05 | 12 | 0.27 | 0.14 | 1.88 | 93 | |
| Incl | 194.1 | 195.9 | 1.8 | 1.1 | 0.07 | 14 | 0.36 | 0.13 | 2.80 | 133 |
| PV-15 | 238.5 | 243.0 | 4.5 | 2.7 | 0.18 | 43 | 0.29 | 0.36 | 1.60 | 131 |
| 263.5 | 272.5 | 9 | 5.4 | 1.02 | 16 | 0.23 | 1.10 | 1.41 | 187 | |
| Incl | 266.45 | 272.5 | 6.05 | 3.6 | 0.91 | 22 | 0.33 | 1.61 | 2.04 | 222 |
| PV-19 | Anomalous Ag | |||||||||
| PV-20 | 2.99 | 3.90 | 0.91 | 0.90 | 1.58 | 58 | - | 0.01 | 0.01 | 189 |
| PV-21 | Anomalous Au & Ag | |||||||||
| PV-24 | 120.05 | 123.90 | 2.85 | 2.00 | 0.87 | 43 | 0.07 | 0.04 | 1.46 | 178 |
| Incl. | 121.40 | 122.60 | 1.20 | 0.84 | 1.84 | 95 | 0.05 | 0.05 | 1.26 | 302 |
| 150.22 | 152.85 | 2.63 | 1.83 | 3.30 | 32 | 0.14 | 0.40 | 1.57 | 384 | |
| Incl. | 150.22 | 150.92 | 0.70 | 0.49 | 11.9 | 60 | 0.20 | 0.75 | 3.93 | 1,234 |
| PV-25 | 78.70 | 79.00 | 0.30 | - | 1.36 | 384 | 0.11 | 0.15 | 0.27 | 512 |
| 134.10 | 135.45 | 1.35 | - | 38.2 | 1,157 | 0.08 | 0.06 | 0.10 | 4,311 | |
| Incl. | 134.60 | 135.10 | 0.50 | - | 102.0 | 3,100 | 0.20 | 0.17 | 0.26 | 11,520 |
| PV-27 | 0.90 | 1.30 | 0.40 | 0.10 | 0.22 | 107 | - | 0.02 | 0.02 | 126.2 |
| PV-32 | 109.40 | 111.60 | 2.20 | 1.41 | 0.16 | 17.5 | 0.27 | 0.92 | 1.30 | 115.4 |
| 111.30 | 111.60 | 0.30 | 0.19 | 0.83 | 45.0 | 0.68 | 4.32 | 4.67 | 333.9 | |
| 150.10 | 155.65 | 5.55 | 3.57 | 0.20 | 20.7 | 0.16 | 0.61 | 1.09 | 103.8 | |
| 155.25 | 155.65 | 0.40 | 0.26 | 0.04 | 17 | 0.21 | 3.56 | 6.03 | 391.5 | |
| 225.65 | 226.40 | 0.75 | 0.26 | 0.03 | 94.8 | 2.28 | 0.31 | 3.39 | 253.4 | |
| 225.95 | 226.40 | 0.45 | 0.14 | 0.04 | 144 | 3.65 | 0.45 | 5.12 | 382.2 |
*Silver equivalent values are calculated using the following metals prices: Au, US$1,750/oz, Ag, $21.24/oz, Pb, $0.97/lb and Zn, $1.34/lb. Cu was not used in the calculation, and metallurgical recoveries were not considered as there is no data available for the Palos Verdes vein. True width estimated from hole inclination and estimated vein dip, where known.
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
b) Hot Breccia project
On January 29, 2023, the Company entered into a definitive agreement to acquire a 75% interest in the Hot Breccia project located in the Arizona Copper Belt.
The Hot Breccia project consists of 227 mining concessions that lie about four kilometers from the historic Christmas mine which recorded production of about 481.6 Mlbs of copper from 20.2 M tons at a grade of 1.2% Cu plus significant gold and silver (Sources: Arizona Geological Society Spring Field Trip Guide in 2014). The Company has not been able to verify the production information and it is not necessarily indicative of the mineralization on the Hot Breccia property. It is believed that the Hot Breccia property may contain high grade skarn mineralization similar to that originally mined at the Christmas mine and the historical information is being used by the Company solely to plan and guide future exploration.
Prismo Earn-In Obligations to Walnut:
| As at January 31, | Work Commitments | Property Payments |
|---|---|---|
| 2024 | $500,000 (ii) | $165,000 (i) |
| 2025 | $1,000,000 | $100,000 (ii) |
| 2026 | $1,750,000 | $275,000 |
| 2027 | $2,000,000 | - |
| Total | $5,250,000 | $540,000 |
(i) On April 5, 2024, the Company issued 832,571 common shares (valued at $162,351) to Walnut in partial settlement of property payments.
(ii) On February 5, 2025, Prismo and Walnut agreed to the following amendments: (1) issuance of 2,845,592 common shares of Prismo (valued at $284,559) in settlement of the 2024 work commitment deficit, to be issued on or before February 15, 2025; (2) a cash payment of $100,000 due on the earlier of July 31, 2025 or five business days following the closing of an equity financing by Prismo of at least $500,000; and (3) a cash fee of $10,000 payable on or before February 12, 2025 as consideration for granting the payment extension. If the $100,000 payment is not made by July 31, 2025, an additional penalty of $20,000 will be due by August 15, 2025. These arrangements are in addition to, and do not modify, the terms of the existing Agreement.
Upon satisfaction of the earn-in obligations and the option being exercised, Prismo and Infinitum will enter into a joint venture agreement whereby Prismo will be the initial operator of the project. After all earn-in obligations are satisfied, Prismo will have acquired 75% of the Hot Breccia property, subject to a 2% NSR royalty to Walnut.
Dr. Gibson, CXO of Prismo stated that "This acquisition agreement gives Prismo exposure to a copper system in the world class Arizona Copper Belt with possible precious metal values. Prismo has enough cash on hands to meet property payments and minimum exploration expenditures on all its projects, including Hot Breccia, through 2024."
The Project was previously explored by Bear Creek Mining, a subsidiary of Kennecott Copper Co., on a portion of the property in the 1970's and early 80's. Although the data is not complete and not NI 43-101 compliant, several intercepts of high-grade mineralization were reported as detailed below. Kennecott drilled seven holes from 1972 to 1981 and Phelps Dodge drilled two holes near the current property in the same era. All drill holes intersected hydrothermal alteration within the volcanic rocks that overlie the typically better mineralized Paleozoic carbonate rocks with increasing alteration intensity downwards. The carbonate host units have several copper intercepts reported to exceed 1% copper and elevated zinc.
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
Kennecott reported highlights:
OC-1: 77' with 0.54% Cu at 2,100'
OCC-7 60' of 1.4% Cu, 4.6% Zn at 2900'
OCC-8: 25' with 1.73% Cu and 0.11% Zn at 2,305' and 15' with 1.4% Cu and 0.88% Zn at 2,350'
Phelps Dodge drill hole PD 2 reported: 1,270 feet of variably mineralized skarn with several intercepts over 1% copper and a high of 3.16% copper
The source for the drill hole data above is Keating, L. DSc, CPG (2021): "The HotBx Claims, Winkelman, Pinal County, Arizona". Data package prepared for Infinitum Copper Corp. by Walnut Mines LLC.
The drill data presented in the Company's January 9, 2023 press release is incomplete and is not qualified under NI 43-101, but is believed to be accurate. The Company has not verified the historic data presented and it cannot be relied upon, and it is being used solely to aid in the development of exploration plans.
Drill hole data for holes from the Kennecott program
| Hole | Easting | Northing | Elev. (ft) | Azim | Incl | Depth (ft) |
|---|---|---|---|---|---|---|
| OC-1 | 526,901 | 3,653,535 | Unknown | Vert | - | 2406 |
| OC-2 | 526,090 | 3,653,577 | Unknown | Vert | - | +970? |
| OC-3 | 527,117 | 3,653,763 | Unknown | Vert | - | +970? |
| UnknownOC-5 | 525,869 | 3,653,946 | Unknown | Vert | - | +500? |
| OCC-6 | 526,890 | 3,653,709 | 2,520 | Vert | - | 3,704 |
| OCC-7 | 527,078 | 3,653,356 | 2,500 | Vert | - | 3,587 |
| OCC-8 | 526,957 | 3,653,368 | 2,500 | Vert | - | 2,908 |
Coordinates in UTM NAD27 estimated from drill logs.
On June 16, 2023, the Company provided an update on exploration, including completion a surface survey for an environmental report, the contracting of an airborne ZTEM geophysical survey, and initial results of a LiDAR survey conducted over the area of historic drilling at Hot Breccia. On July 11, 2023, the Company announced that the airborne ZTEM geophysical survey had been completed, and also announced assay results for initial sampling at the project.
On February 9, 2024, the Company announced that priority drill targets had been identified at Hot Breccia through the ZTEM survey, where a large conductive body was identified at depth below the surface exposure of a large dike swarm that hosts the namesake breccias. Anomalous copper and gold assays are locally present at the surface in this area (see press release of July 11, 2023), and high-grade copper and zinc assays are present above this anomaly in historic drill holes completed by major copper producers in the 1970's and early 1980's (see press release of January 29, 2023). While all of the historic drill holes intersected hydrothermal alteration within the volcanic rocks that overlie the typically better mineralized Paleozoic carbonate rocks with increasing alteration intensity downwards, no historic drilling targeted this newly identified conductive zone identified in Prismo's ZTEM survey. The carbonate host units above the anomaly have several copper intercepts reported to exceed 1% copper and elevated zinc levels.
Dr. Craig Gibson, CXO commented: "The ZTEM survey conducted in 2023 has identified a priority conductive anomaly at depth that appears to be related to a dike swarm with associated polymictic breccia. We are looking forward to drilling this target which has characteristics that are similar to the mineralized copper and base metal deposits at the adjacent Christmas mine, an important historic producer and location of an unmined porphyry copper deposit owned by Freeport. The project is also located along the trend of several very large porphyry copper deposits, including Resolution, 40 km to the north, and San Manuel / Kalamazoo 35 km to the south."
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
On March 4, 2024, the Company announced that it had engaged ExploreTech Inc. to apply xFlare, their Artificial Intelligence (AI)-Optimized drill planning solution, to its Hot Breccia Project where a number of features suggests well mineralized Arizona-style Copper Porphyry lies at depth. The xFlare AI approach is specifically designed to combine surface geology and drilling results with computationally intensive remodeling of existing geophysical datasets to optimize targeting of covered targets. The process quickly generates thousands of solutions that cluster on the best fits between the geological and geophysical data and then generates drillhole trajectories designed to cut those clusters most effectively.
On March 26, 2024, the Company announced further results for samples taken in February during their ongoing exploration program at. The Hot Breccia property hosts a cluster of hydrothermal breccias originating from at least 1 kilometre depth that incorporated a wide range of wallrock fragments including variably copper and gold mineralized sedimentary and intrusive units. Assay results include a fragment of mineralized magnetite skarn encased within a quartz diorite porphyry that assayed 5.69% copper, 0.24 g/t gold and 32.8 g/t silver.
Assay highlights for samples taken in February from Hot Breccia
| Sample | Easting | Northing | Type | Width (m) | Cu_% | Au_g/t | Ag_g/t |
|---|---|---|---|---|---|---|---|
| 256613 | 526,484 | 3,653,645 | Dump | - | 0.98 | 6.5 | 1.4 |
| 256614 | 527,025 | 3,654,496 | Dump | - | 0.24 | 0.7 | 1.6 |
| 256615 | 526,754 | 3,654,359 | Chip | 0.5 | 0.02 | 9.7 | 2.5 |
| 256617 | 526,843 | 3,654,224 | Chip | 0.2 | 0.04 | 2.2 | 3.2 |
| 256618 | 525,978 | 3,653,864 | Chip | 2.3 | 0.10 | 0.6 | 9.5 |
| 256621 | 527,204 | 3,654,235 | Chip | 2.0 | 0.12 | 0.1 | 7.3 |
| 256622 | 527,276 | 3,653,903 | Chip | 2.5 | 0.40 | 1.8 | 1.6 |
| 256623 | 527,581 | 3,654,583 | Channel | 0.8 | 0.14 | 0.6 | 10.9 |
| 256624 | 527,525 | 3,654,538 | Channel | 1.2 | 0.03 | 4.7 | 50.7 |
| 256626 | 526,781 | 3,652,615 | Chip | 0.8 | 0.01 | 2.6 | 5.7 |
| 256630 | 526,670 | 3,652,304 | Chip | 1.5 | 0.68 | 0.0 | 2.6 |
| 256631 | 526,213 | 3,652,904 | Chip | 0.4 | 0.00 | 0.8 | 0.4 |
| 256632 | 526,160 | 3,652,867 | Chip | 1.2 | 1.86 | 0.2 | 1.7 |
| 256633 | 526,138 | 3,652,852 | Chip | 1.6 | 0.67 | 1.2 | 1.7 |
| 256635 | 526,555 | 3,654,221 | Selected | 0.2 | 0.02 | 2.9 | 2.1 |
| 256636 | 526,578 | 3,654,232 | Dump | Dump | 0.01 | 3.6 | 2.2 |
| 256638 | 525,699 | 3,654,310 | Dump | Dump | 0.01 | 5.6 | 1.1 |
| 256639 | 525,754 | 3,654,322 | Chip | 0.4 | 0.00 | 2.1 | 0.7 |
| 256641 | 526,123 | 3,654,474 | Chip | 1 | 0.02 | 0.5 | 4.3 |
| 256642 | 525,974 | 3,654,483 | Chip | 1.5 | 0.03 | 0.3 | 0.8 |
| 256643 | 525,905 | 3,654,416 | Dump | Dump | 0.01 | 2.4 | 0.4 |
| 256644 | 526,935 | 3,653,704 | Selected | Grab | 5.69 | 0.2 | 32.8 |
Coordinates in WGS84.
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
As of the date of this Interim MD&A, the option payment in the amount of USD$100,000 for the second year of the Option Agreement has been made.
On July 12, 2024, the company announced that it has secured permit approval for the Hot Breccia drill program from the BLM by posting the required reclamation bond. Maintenance of the road infrastructure at the project is planned prior to drilling.
On September 2, 2024, the Company announced that it had acquired important historical information on the project from a third party and had updated the exploration model for the Hot Breccia project. The information included Kennecott Copper Company (Through their exploration subsidiary Bear Creek Mining Company) exploration data, gathered between 1972 and mid-1974, including the complete log and assays for Kennecott's first drill hole (Hole OC-1), Induced Polarization (IP) geophysical data, and a geological interpretation incorporating holes OC-1 to OC-3. All the data are subsequent to those included in a master's thesis by Larry Barrett in 1972, which was the basis of Prismo's previous modeling. Important features of the acquired data are that they show: 1) the distribution of post mineral quartz diorite dikes containing fragments of copper-bearing mineralization brought up from depth and 2) the location of shallow and deep IP anomalies that Kennecott interpreted as indicating the presence of a deeper and larger sulfide body than they had previously recognized. Importantly, their IP anomaly appears to correspond closely to the area of the conductive anomaly identified in Prismo's 2023 ZTEM geophysical survey (see News Release of February 9, 2024).
Hole OC-1 was drilled to a depth of 733 meters in 1974. It was collared in the area of one of the property's namesake breccias that host copper skarn fragments sourced from deep below the surface. Prismo sampling of some of these fragments assayed up to 5.7% copper (See News Release dated March 26, 2024). Prismo previously possessed only the logs for the upper 295 meters of the hole; stopping in the volcanic rocks above the carbonate rocks that host the target skarn and porphyry indicated by the breccia fragments mapped at surface. The Kennecott data include the complete description and assay data for OC-1, as well as their interpretation of the results. An important conclusion of the interpretation is the presence of an altered quartz diorite interpreted to be the causative intrusion.
On October 15, 2024, the Company announced the results of the Artificial Intelligence study by ExploreTech. Computer simulations identified a large exploration target defined by the overlap of the numerous geological models and supports Prismo's model for mineralization and conforms with several key features, including (i) the presence of high-grade skarn mineralization at relatively shallow depths in historic drill holes, (ii) the presence of two areas where copper skarn fragments are present as xenoliths in quartz diorite dikes, and (iii) the location of a deeper IP anomaly in the historic information.
Subsequent to the end of the reporting period, on February 28, 2025, the Company provided an updated the exploration model for the Hot Breccia project based on a combined analysis of (i) the results of the airborne geophysical survey conducted in 2023 which consisted of data collected with a ZTEM (Z-axis Tipper Electromagnetic) System, (ii) historical exploration data and (iii) the AI study conducted by Prismo in 2024. Steve Robertson, President of Prismo Metals stated: "The results of the geophysical survey when taken in conjunction with the historical exploration data and the AI study provide a compelling exploration model for the Hot Breccia project. The data sets complement each other nicely and combine to form a model that is typical of porphyry copper deposits. The additional supportive context of the similarity of Hot Breccia's geologic setting, with the geologic setting at the Resolution deposit, culminates in this being an exciting and high priority exploration target."
(c) Los Pavitos project and the Cascabel Option
In addition to the Palos Verdes and Hot Breccia projects, the Company held the Cascabel Option (as defined below) in respect of the Los Pavitos project during the reporting period but which was subsequently terminated.
Los Pavitos is an early-stage exploration project located in the Álamos area of Sonora State, Mexico. The project consists of one concession, Los Pavitos Reducción, that covers 5,289 hectares. The concession is located on the paved highway between Navajoa and Álamos at about the 17 km marker, and the main mineralized area is about 6 km North of the highway and can be reached by unmaintained dirt roads that access local ranches. Several interior concessions owned by third parties cover mineralized occurrences within the boundaries of the Los Pavitos concession.
11
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
On October 11, 2019, the Company entered into an option agreement (the "Cascabel Option") with Minera Cascabel S.A. de C.V. ("Cascabel"). Pursuant to the terms of the Cascabel Option, Cascabel granted the Company an option to earn up to 100% in the Los Pavitos concession, located in the state of Sonora, Mexico, over a period of five years. On March 19, 2021, the Company received an NI 43-101 Technical Report on the Los Pavitos property, commissioned as one of the requirements of the Cascabel Option Agreement. This report, titled "Geology and Exploration of the Los Pavitos Property, Municipality of Alamos, Sonora State, Mexico" and dated March 18, 2021, is available on SEDAR+. The report concluded that Los Pavitos has potential for both Epithermal Gold-Silver veins and Orogenic (Shear-hosted) Gold deposits. Epithermal veins are the most abundant mineralization style in the area, and several have been located in Los Pavitos. The project is hosted by Mesozoic metasediments that are part of older terranes that underlie much of Northwest Mexico and these rocks have been regionally sheared and later intruded by plutons of intermediate composition. Rocks of similar composition and history host several large Orogenic Gold deposits that have been discovered elsewhere in western Sonora.
On February 24, 2025, the Company announced that it provided Cascabel with a notice of termination of the Option Agreement dated October 11th, 2019 in respect of the Los Pavitos project. In the current market conditions Prismo is not in a position to support this project, and considering the ongoing funding requirement just to hold the property, it was decided that terminating the option was the best course of action.
Technical Information
Prismo's disclosure of a technical or scientific nature has been reviewed and approved by Dr. Peter Craig Gibson, Ph.D., Director and Chief Exploration Officer of the Company and a Qualified Person ("QP") under the definition of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
12
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
The Company has incurred the following exploration and evaluation investments:
| Balance, December 31, 2023 | $ 5,820,296 |
|---|---|
| ProDeMin Project | |
| Option payments | 300,054 |
| Palos Verdes remaining 25% option-cash | - |
| Drilling | 333,953 |
| Other | 343,811 |
| Additions to ProDeMin Project | 977,818 |
| Hot Breccia Project | |
| Option payment | - |
| Permitting | 159,049 |
| Drilling | 68,384 |
| Other | 347,237 |
| Additions to Hot Breccia Project | 574,670 |
| Los Pavitos Project | |
| Option payment | 155,154 |
| Drilling | 119,102 |
| Other | 56,181 |
| Write-off of Los Pavitos Project | (1,790,565) |
| Additions to Los Pavitos Project | (1,460,128) |
| Balance, December 31, 2024 | 5,912,656 |
| ProDeMin Project | |
| Option payments | 284,559 |
| Other | 8,812 |
| Additions to ProDeMin Project | 293,371 |
| Hot Breccia Project | |
| Other | 33,298 |
| Additions to Hot Breccia Project | 33,298 |
| Balance, March 31, 2025 | $ 6,239,325 |
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
Environmental Contingency
The Company's exploration activities are subject to various laws and regulations relating to the protection of the environment. These environmental regulations are continually changing and are generally becoming more restrictive. As of December 31, 2024, the Company does not believe that there are any significant environmental obligations requiring material capital outlays in the immediate future.
Transactions with Related Parties
Transactions with key management personnel and other related parties of the Company was as follows:
| Three Months Ended March 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Consulting fees paid to a company controlled by the Chief Executive Officer of the Company: | $ 29,500 | $ - |
| Consulting fees paid to a company controlled by the President of the Company: | $ 31,800 | $ - |
| Consulting fees paid to the Chief Exploration Officer of the Company for supervision of exploration programs: | $ 10,893 | $ - |
| Accounting fees paid to Marrelli Support Services Inc., a company controlled by the Chief Financial Officer of the Company: | $ 6,855 | $ 6,355 |
| Share-based payments: | $ 82,177 | $ 57,336 |
In addition to the above transactions, both the ProDeMin Option and the Cascabel Option are related party transactions, as ProDeMin is controlled by a director of the Company, and two directors of the Company have an interest in the project related to the Cascabel option.
The following amounts were due to related parties:
| As at March 31, 2025 | As at December 31, 2024 | |
|---|---|---|
| Amounts owed to the Chief Exploration Officer for consulting fees and reimbursable expenses | $ 39,663 | $ 57,356 |
| Amounts owed to Marrelli Support Services Inc., a company controlled by the Chief Financial Officer of the Company | 5,222 | 8,524 |
| Amounts owed to a company controlled by the Chief Executive Officer of the Company for consulting fees and reimbursable expenses | 13,072 | 9,500 |
| Amounts owed to a company controlled by the President of the Company for consulting fees and reimbursable expenses | 10,000 | 9,440 |
| Amount owed to a company controlled by the directors of the Company: | - | 681 |
| $ 67,957 | $ 85,501 |
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
Off Balance Sheet Arrangements
As of the date of this filing, the Company does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the results of operations or financial condition of the Company including, without limitation, such considerations as liquidity and capital resources that have not previously been discussed.
Proposed Transactions
There are no proposed transactions of a material nature being considered by the Company. The Company continues to evaluate properties and corporate entities that it may acquire in the future.
Outstanding Share Data
The number of common shares of the Company outstanding and the number of common shares issuable pursuant to other outstanding securities of Prismo as at May 30, 2025 are as follows:
| Securities | As at May 30, 2025 |
|---|---|
| Common shares outstanding | 59,571,962 |
| Issuable under warrants | 7,164,757 |
| Issuable under options | 4,625,000 |
| Issuable under RSUs | 800,000 |
| Issuable under SARs | 1,625,000 |
| Total securities | 73,786,719 |
Risk Factors
An investment in the securities of the Company is highly speculative and involves numerous and significant risks. Such investment should be undertaken only by investors whose financial resources are sufficient to enable them to assume these risks and who have no need for immediate liquidity in their investment. Prospective investors should carefully consider the risk factors that have affected, and which in the future are reasonably expected to affect, the Company and its financial position. Please refer to the section entitled "Risks Factors" in the Company's Annual MD&A for the year ended December 31, 2024, available on SEDAR+ at www.sedarplus.ca.
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
Disclosure of Internal Controls
Management has established processes to provide them with sufficient knowledge to support representations that they have exercised reasonable diligence to ensure that the consolidated financial statements (i) do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, and (ii) fairly present in all material respects the financial condition, results of operations and cash flow of the Company, in each case as of the date of and for the periods presented by such statements.
In contrast to the certificate required for non-venture issuers under National Instrument 52-109 – Certification of Disclosure in Issuers' Annual and Interim Filings ("NI 52-109"), the Venture Issuer Basic Certificate filed by the Chief Executive Officer and Chief Financial Officer of the Company does not include representations relating to the establishment and maintenance of disclosure controls and procedures ("DC&P") and internal control over financial reporting ("ICFR"), as such terms are defined in NI 52-109. In particular, the certifying officers filing such certificate are not making any representations relating to the establishment and maintenance of:
(i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the Company in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
(ii) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS.
The Company's certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in such certificate. Investors should be aware that inherent limitations on the ability of the Company's certifying officers of a venture issuer to design and
implement, on a cost-effective basis, DC&P and ICFR may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports required to be provided under securities legislation.
For further information, the reader should refer to the Venture Issuer Basic Certificates filed by the Company with the annual filings on SEDAR+ at www.sedarplus.ca.
16
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
Cautionary Note Regarding Forward-Looking Statements
This Interim MD&A contains certain "forward-looking information" as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "budgeted", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved.
The forward-looking statements in this Interim MD&A speak only as of the date of this Interim MD&A or as of the date specified in such statements. The following table outlines certain significant forward-looking statements contained in this Interim MD&A and provides the material assumptions used to develop such forward-looking statements and material risk factors that could cause actual results to differ materially from the forward-looking statements.
| Forward-looking statements | Assumptions | Risk factors |
|---|---|---|
| Regardless of whether the Company discovers a significant precious or base metal deposit, it has working capital deficiency of $1,115,327 as at March 31, 2025, additional financings will be required to fund future exploration for the twelve-month period ending March 31, 2026. | The operating and exploration activities of the Company for the twelve-month period ending March 31, 2026, and the costs associated therewith, will be consistent with the Company's current expectations; and equity markets, exchange and interest rates and other applicable economic conditions will be favourable to the Company. | Unforeseen costs to the Company will arise; any particular operating cost increase or decrease from the date of the estimation; changes in operating and exploration activities; changes in economic conditions; timing of expenditures. |
| The Company's properties may contain economic deposits of minerals | The actual results of the Company's exploration and development activities will be favourable; operating, exploration and development costs will not exceed the Company's expectations; all requisite regulatory and governmental approvals for exploration projects and other operations will be received on a timely basis upon terms acceptable to the Company, and applicable political and economic conditions are favourable to the Company; the price of applicable commodities and applicable interest and exchange rates will be favourable to the Company; no title disputes exist or will arise with respect to the Company's properties; and the Company has or will obtain adequate property rights to support its exploration and development activities | Commodity price volatility; uncertainties involved in interpreting geological data and confirming title to acquired properties; inability to secure necessary property rights; the possibility that future exploration results will not be consistent with the Company's expectations; increases in costs; environmental compliance and changes in environmental and other applicable legislation and regulation; interest rate and exchange rate fluctuations; changes in economic and political conditions |
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
| The Company's anticipated business plans, including costs and timing for future exploration on its property interests and acquisitions of additional mineral resource properties or interests therein | The exploration activities of the Company and the costs associated therewith, will be consistent with the Company's current expectations; and equity markets, exchange and interest rates and other applicable economic conditions will be favourable to the Company; financing will be available for the Company's exploration and development activities on favourable terms; the Company will be able to retain and attract skilled staff; all applicable regulatory and governmental approvals for exploration projects and other operations will be received on a timely basis upon terms acceptable to the Company; the Company will not be adversely affected by market competition; the price of applicable commodities will be favourable to the Company; no title disputes exist or will arise with respect to the Company's properties; the Company has or will obtain adequate property rights to support its exploration and development activities; and the Company will be able to successfully identify and negotiate new acquisition opportunities. | Commodity price volatility; changes in the condition of debt and equity markets; timing and availability of external financing on acceptable terms may not be as anticipated; the uncertainties involved in interpreting geological data and confirming title to acquired properties; inability to secure necessary property rights; the possibility that future exploration results will not be consistent with the Company's expectations; increases in costs; environmental compliance and changes in environmental and other applicable legislation and regulation; interest rate and exchange rate fluctuations; changes in economic and political conditions; the Company may be unable to retain and attract skilled staff; receipt of applicable permits is subject to governmental and/or regulatory approvals; the Company does not have control over the actions of its joint venture partners and/or other counterparties |
|---|---|---|
| Management's outlook regarding future trends and exploration programs | Financing will be available for the Company's exploration and operating activities; the price of applicable commodities will be favourable to the Company; the actual results of the Company's exploration and development activities will be favourable; management is aware of all applicable environmental obligations | Commodity price volatility; changes in the condition of debt and equity markets; interest rate and exchange rate fluctuations; changes in economic and political conditions; the possibility that future exploration results will not be consistent with the Company's expectations; changes in environmental and other applicable legislation and regulation |
Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. Please also make reference to those risk factors identified or otherwise indirectly referenced in the "Risks and Uncertainties" section above. Readers are cautioned that the above chart does not contain an exhaustive list of the factors or assumptions that may affect the forward-looking statements contained in this Interim MD&A, and that the assumptions underlying such statements may prove to be incorrect. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward- looking statements contained in this Interim MD&A.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary note. Accordingly, readers should not place undue reliance on forward- looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward- looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more
18
Prismo Metals Inc.
Management's Discussion & Analysis – Quarterly Highlights
Three Months Ended March 31, 2025
Dated: May 30, 2025
forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements, unless required by law.
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