West Red Lake Gold Reports Second Quarter 2026 Results: 51% Production Increase, 30% AISC Reduction

• Gold production increased 51% to 8,576 ounces in the second quarter of 2026.
• Revenue rose 17% to $49 million from 8,260 ounces sold at an average realized price of US$4,288 per ounce.
• All-in sustaining costs (AISC) declined by 30% to US$3,284 per ounce, in line with 2026 guidance.
• West Red Lake Gold generated $9.7 million in free cash flow and ended the quarter with $31.2 million in cash.
• Mill throughput increased 47% to 842 tonnes per day, with processing targeted to reach approximately 1,000 tonnes per day in the second half.

Company Overview

West Red Lake Gold Mines Ltd. (TSXV: WRLG | OTCQX: WRLGF) is a Canadian gold producer and developer advancing a high-grade, district-scale opportunity in Ontario's Red Lake district. The company's flagship Madsen Mine achieved commercial production in 2025 and is positioned as the central processing hub for a growing multi-asset platform across a47-square-kilometere land package in the Red Lake district, which has historically produced over 20 million ounces of gold. West Red Lake Gold also owns the Rowan Property in Red Lake, which covers 31 square kilometers and includes three past-producing mines, Rowan, Mount Jamie, and Red Summit, representing a key source of future production growth.

Second Quarter 2026 Financial Highlights

West Red Lake Gold Mines Ltd. reported second quarter 2026 revenue of $49 million from 8,260 ounces of gold sold at an average realized gold price of US$4,288 per ounce, a 17% increase from $41.8 million in the first quarter of 2026. Income from mine operations was $20.1 million, a 31% increase from $15.3 million in the first quarter of 2026, with operating margin improving to 41% from 37%.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 54% to $22.1 million from $14.4 million in the first quarter of 2026. Adjusted net earnings increased 98% to $12.6 million from $6.4 million in the first quarter of 2026. All-in sustaining costs  (AISC) decreased 30% to US$3,284 per ounce sold from US$4,678 per ounce in the first quarter of 2026, within the company's 2026 guidance range of US$2,800 to US$3,600 per ounce. The company generated $9.7 million of positive free cash flow (FCF) and ended the quarter with $31.2 million in cash and cash equivalents.

President and Chief Executive Officer of West Red Lake Gold Mines Ltd., Shane Williams, commented on the second quarter of 2026 results and the outlook for the balance of 2026: 

"The second quarter demonstrated the progress we are making at Madsen, with higher mining rates and gold production translating into stronger financial performance. Gold production increased 51%, and gold sales increased 34% over the first quarter, contributing to a 30% reduction in AISC to US$3,284 per ounce, within our 2026 guidance range, while Madsen generated $9.7 million of positive free cash flow. Our focus for the balance of 2026 is on consistent execution while continuing to invest in underground development and infrastructure to build production inventory and greater operating flexibility. These investments are important to strengthening the operation over the longer term, and the progress achieved during our first six months of commercial production has provided a stronger foundation from which to continue advancing Madsen."

Second Quarter 2026 Mine Operations

Gold production increased 51% to 8,576 ounces in the second quarter of 2026. Ore mined increased 46% to 75,524 tonnes, and average mined grade increased 18% to 4.3 grams per tonne of gold. Mined ounces increased 73% to 10,459 ounces from 6,033 ounces in the first quarter of 2026. Average mill throughput increased 47% to approximately 842 tonnes per day, with gold recovery remaining approximately 95%.

Higher mining rates relative to mill throughput allowed the Company to establish a surface stockpile of approximately 10,768 tonnes as of June 30, 2026, providing additional flexibility between underground mining and mill processing. Processing rates are targeted to increase to approximately 1,000 tonnes per day over the second half of 2026.

Capital Expenditures & Infrastructure

Sustaining capital decreased 20% to $12.3 million in the second quarter of 2026 from $15.4 million in the first quarter of 2026. Non-sustaining growth capital expenditures (CAPEX) totaled $6.3 million in the second quarter of 2026, primarily related to advancement of the Fork Deposit access drift and the Madsen shaft refurbishment project.

Next Steps

The company's unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A) for the three and six months ended June 30, 2026 are available on SEDAR+ at www.sedarplus.ca and on the company's website at www.westredlakegold.com. Processing rates are targeted to increase to approximately 1,000 tonnes per day over the second half of 2026.

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