INTERNATIONAL TOWER HILL MINES LTD

Previous wording

The Company had a net loss of $545,308 for the three months ended March 31, 2024, compared to a net loss of $503,537 for the three months ended March 31, 2023.

Current wording

The Company had a net loss of $1,431,915 for the three months ended June 30, 2024, compared to a net loss of $1,467,897 for the three months ended June 30, 2023.

Previous wording

Excluding share-based costs of $12,084 and $17,734 for the three months ended March 31, 2024 and March 31, 2023, respectively, wages and benefits were $196,208 for the three months ended March 31, 2024 compared to $97,915 for the three months ended March 31, 2023. The increase of $98,293 was primarily due to prior year-end payroll accruals reversing $82,867 and to the timing of payroll benefits $15,426.

Current wording

Excluding share-based costs of $57,829 and $55,574 for the six months ended June 30, 2024 and June 30, 2023, respectively, wages and benefits were $410,016 for the six months ended June 30, 2024 compared to $308,842 for the six months ended June 30, 2023. The increase of $101,174 was primarily due to prior year-end payroll accruals reversing of $82,867 and to the timing of payroll benefits of $18,307.

Previous wording

Mineral property expenditures were $130,104 for the three months ended March 31, 2024, compared to $145,895 for the three months ended March 31, 2023. The decrease of $15,791 was primarily due to timing variances for environmental activities for a decrease of $16,404, partially offset by an increase of $613 for legal services.

Current wording

Mineral property expenditures were $759,055 for the six months ended June 30, 2024, compared to $787,643 for the six months ended June 30, 2023. The decrease of $28,588 was primarily due to decreased legal services of $26,198 and timing variances for environmental activities for a decrease of $6,519 and project-related expenses for an increase of $4,129.

Previous wording

Excluding share-based costs of $863 and $1,267 for the three months ended March 31, 2024 and March 31, 2023, respectively, investor relations costs were $8,953 for the three months ended March 31, 2024 compared to $2,804 for the three months ended March 31, 2023. The increase of $6,149 was primarily due to increased investor relations services.

Current wording

Excluding share-based costs of $4,131 and $3,970 for the six months ended June 30, 2024 and June 30, 2023, respectively, investor relations costs were $37,957 for the six months ended June 30, 2024 compared to $30,841 for the six months ended June 30, 2023. The increase of $7,116 was primarily due to increased utilization of investor relations services.

Previous wording

Share-based payment charges for the three-month periods ended March 31, 2024 and 2023 were allocated as follows:

Current wording

Share-based payment charges for the six-month periods ended June 30, 2024 and 2023 were allocated as follows:

Previous wording

Share-based payment charges were $13,810 during the three months ended March 31, 2024 compared to $20,268 during the three months ended March 31, 2023. The decrease of $6,458 was mainly the result of the stock options for common shares of the Company issued to its employees and consultants on May 25, 2021 being fully vested during the three months ended March 31, 2024.

Current wording

Share-based payment charges were $359,333 during the six months ended June 30, 2024 compared to $321,067 during the six months ended June 30, 2023. The increase of $38,266 was mainly the result of the DSUs issued on May 29, 2024 being expensed at $293,242 compared to the DSUs issued on May 23, 2023 being expensed at $257,553 for an increase of $35,689 and stock options for common shares of the Company issued to its employees and consultants vesting during the six months ended June 30, 2024 for an increase of $2,577.

Previous wording

Other items amounted to total other income of $67,601 during the three-month period ended March 31, 2024, compared to total other income of $14,793 during the three-month period ended March 31, 2023. As a result of the impact of exchange rates on certain of the Company’s U.S. dollar cash balances, the Company had a foreign exchange gain of $38,404 during the three-month period ended March 31, 2024, compared to a loss of $6,773 during the three-month period ended March 31, 2023. The average exchange rate during the three-month period ended March 31, 2024 was C$1 to $0.7380, compared to C$1 to $0.7394 during the three-month period ended March 31, 2023. Interest income was $29,197 for the three-month period ended March 31, 2024, compared to $21,566 for the three-month period ended March 31, 2023. The increase of $7,631 was primarily due to short-term investment certificates being re-invested upon maturity at a higher interest rate.

Current wording

Other items amounted to total other income of $121,809 during the six-month period ended June 30, 2024, compared to total other income of $5,685 during the six-month period ended June 30, 2023. As a result of the impact of exchange rates on certain of the Company’s U.S. dollar cash balances, the Company had a foreign exchange gain of $64,435 during the six-month period ended June 30, 2024, compared to a loss of $60,616 during the six-month period ended June 30, 2023. The average exchange rate during the six-month period ended June 30, 2024 was C$1 to $0.7361, compared to C$1 to $0.7421 during the six-month period ended June 30, 2023. Interest income was $57,374 for the six-month period ended June 30, 2024, compared to $55,821 for the six-month period ended June 30, 2023. The increase of $1,553 was primarily due to short-term investment certificates being re-invested upon maturity at a higher interest rate. Other income was $Nil for the six-month period ended June 30, 2024, compared to $10,480 for the six-month period ended June 30, 2023.

Previous wording

As at March 31, 2024, the Company had cash and cash equivalents of $2,588,036 compared to $1,687,690 at December 31, 2023. The increase of approximately $0.9 million resulted mainly from net financing activities of $2.4 million partially offset by short-term investments of $1.0 million and operating activities of $0.5 million.

Current wording

As at June 30, 2024, the Company had cash and cash equivalents of $2,269,940 compared to $1,687,690 at December 31, 2023. The increase of approximately $0.6 million resulted mainly from net financing activities of $2.3 million and a positive foreign exchange impact of $0.1 million partially offset by operating activities of $1.8 million.

Previous wording

Financing activities during the three-month period ended March 31, 2024 included the Private Placement pursuant to which the Company issued 3,807,911 common shares to existing major shareholders to raise gross proceeds of approximately $2.5 million.

Current wording

Financing activities during the six-month period ended June 30, 2024 included the Private Placement, pursuant to which the Company issued 3,807,911 common shares to existing major shareholders to raise gross proceeds of approximately $2.5 million.

Previous wording

The Company had no cash flows from financing activities during the three-month period ended March 31, 2023.

Current wording

The Company had no cash flows from financing activities during the six-month period ended June 30, 2023.

Previous wording

The Company had no cash flows from investing activities during the three-month period ended March 31, 2023.

Current wording

The Company had no cash flows from investing activities during the six-month periods ended June 30, 2024 and June 30, 2023.

Previous wording

As at March 31, 2024, the Company had working capital of $3,513,122 compared to working capital of $1,757,465 at December 31, 2023. The Company expects that it will operate at a loss for the foreseeable future, but believes the current cash and cash equivalents will be sufficient to cover the anticipated 2024 work plan at the Livengood Gold Project and satisfy its currently anticipated general and administrative costs through at least the next 12 months.

Current wording

As at June 30, 2024, the Company had working capital of $2,373,525 compared to working capital of $1,757,465 at December 31, 2023. The Company expects that it will operate at a loss for the foreseeable future, but believes the current cash and cash equivalents will be sufficient to cover the anticipated 2024 work plan at the Livengood Gold Project and satisfy its currently anticipated general and administrative costs through at least the next 12 months.

Previous wording

For a discussion of the accounting judgments and estimates that the Company's management has identified as critical in the preparation of the Company’s financial statements, please see “Critical Accounting Estimates” under Part II. Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes in the Company’s critical accounting estimates during the three months ended March 31, 2024.

Current wording

For a discussion of the accounting judgments and estimates that the Company’s management has identified as critical in the preparation of the Company’s financial statements, please see “Critical Accounting Estimates” under Part II. Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes in the Company’s critical accounting estimates during the six months ended June 30, 2024.