Executive Summary / Key Takeaways

• Rise Gold Corp. (RYES) is an exploration-stage company singularly focused on unlocking the value of its wholly-owned, historic Idaho-Maryland Gold Mine in California, a past-producing, high-grade asset.
• The company's immediate future hinges on a critical legal battle to affirm its vested right to mine without a use permit, with oral arguments scheduled for January 9, 2026, acting as a significant near-term catalyst.
• Recent strategic moves include successful equity financing of US$7.0 million in October 2025 and the divestiture of non-core assets, bolstering liquidity to fund ongoing litigation and operations.
• Beyond gold, Rise Gold is strategically reviewing historical data for significant tungsten potential at the Idaho-Maryland Mine, positioning itself to capitalize on the growing demand for critical metals.
• Despite a history of operational losses and the inherent risks of an exploration-stage company, management believes recent financing provides sufficient funds for the next 12 months, though long-term funding remains a consideration.

A Legacy Reimagined: The Idaho-Maryland Gold Mine and its Potential

Rise Gold Corp. (RYES) stands at a pivotal juncture, aiming to resurrect one of the United States' most prolific historical gold mines, the Idaho-Maryland Gold Mine (I-M Mine Property), located in Grass Valley, California. Incorporated in 2007 and solidifying its focus on the I-M Mine Property through a 100% acquisition in 2017, Rise Gold is an exploration-stage company with a singular, high-potential asset. The company's overarching strategy is to transition from an exploration entity to a producing mine by leveraging the I-M Mine's rich history and demonstrated high-grade gold mineralization.

The I-M Mine Property boasts a remarkable past, having produced an estimated 2.40 million ounces of gold at an impressive average mill head grade of approximately 0.50 ounces per ton (17.10 grams per tonne) between 1863 and 1956. In 1941, it was reportedly the second-largest gold mine in the United States before a government-mandated shutdown in 1942. This historical productivity underscores the foundational strength of Rise Gold's asset, differentiating it from many early-stage exploration plays. The proposed project design envisions recommencing underground mining at an average throughput of 1,000 tons per day, utilizing the existing 3,400-foot-deep Brunswick Shaft for rock conveyance and constructing a second service shaft. Gold processing would employ conventional gravity and flotation methods to produce concentrates, a technique proven effective for the mine's free-milling gold. Operational plans also include using barren rock and sand tailings to create approximately 58 acres of industrial zoned land for future economic development, alongside a water treatment plant to ensure regulatory compliance for discharge. At full production, the project is estimated to require approximately 300 employees.

The Legal Crucible: Vested Rights and the Path to Production

The path to production for Rise Gold is currently defined by a high-stakes legal battle to affirm its constitutionally protected vested right to mine at the I-M Mine Property without requiring a new use permit. This legal strategy emerged after the Nevada County Board of Supervisors rejected the company's vested rights petition in December 2023, following a Use Permit application submitted in November 2019 that was ultimately denied in February 2024. In response, Rise Gold filed a Writ of Mandamus with the Superior Court of California in May 2024, seeking to compel the Board to recognize its established mining rights.

A significant development occurred on August 8, 2025, when the Superior Court rejected the County's motion for summary judgment, affirming Rise Gold's beneficial interest in the mine property and its possession of all necessary surface and mineral estate should its vested right be recognized. Oral arguments for this pivotal case are stipulated to take place on January 9, 2026, making the Superior Court's decision an immediate catalyst expected in the first quarter of 2026.

Should the Court reject the writ, the company's financial implications would shift towards a compensation claim under the Fifth Amendment of the U.S. Constitution. The company's ability to secure these rights is paramount, as the traditional Use Permit process involves extensive regulatory hurdles, including compliance with the California Environmental Quality Act (CEQA) and the Surface Mining and Reclamation Act (SMARA), with no assurance that all necessary permits would be obtainable on reasonable terms.

Beyond Gold: Unlocking Tungsten's Value

In a strategic move to diversify its mineral portfolio and capitalize on evolving market demands, Rise Gold has commenced a review of historical data indicating significant tungsten potential at the Idaho-Maryland Mine. Announced on November 4, 2025, this initiative is particularly timely given tungsten's inclusion in the U.S. Department of Energy's 2023 DOE Critical Metals List. Historical reports from the 1950s show the property previously produced tungsten concentrates exceeding 70% WO3, with reported tonnages of 3,086 short tons at 1.30% WO3 in 1955 and 5,898 short tons at 0.83% WO3 in 1956.

While the company's primary focus remains gold, the exploration of tungsten represents a significant strategic initiative. The inherent "technology" here lies not in a novel mining process, but in the proven historical presence and recoverability of these valuable minerals within the I-M Mine Property. The strategic intent is to leverage the existing asset's geological endowment to potentially establish an additional revenue stream, thereby de-risking its reliance on gold and tapping into the growing market for critical metals. The company plans to engage industry consultants to review records and recommend further work, potentially including re-assaying existing drill core and pulps for tungsten. This could provide a quantifiable benefit by adding a new, high-demand commodity to its potential output.

Financial Fortitude and Funding the Future

As an exploration-stage company, Rise Gold has consistently operated at a loss and has not generated revenue from mining operations since its inception. For the year ended July 31, 2025, the company reported a net loss of $3.26 million, an improvement from the $3.57 million loss in the prior year. Operating losses also decreased to $2.48 million in 2025 from $3.66 million in 2024, primarily due to a significant reduction in mineral exploration costs, which fell to $96,520 in 2025 from $808,832 in 2024. This reduction reflects a shift in focus towards the legal efforts surrounding the vested rights and Use Permit applications.

Share-based payments, however, increased to $697,122 in 2025 from $345,507 in 2024, aimed at incentivizing management and consultants.

Liquidity has seen a notable improvement. As of July 31, 2025, Rise Gold held a cash balance of $2.78 million, a substantial increase from $243,669 in the prior year. This led to a working capital surplus of $1.93 million, a significant turnaround from a $1.77 million deficit in 2024.

The company's cash position was bolstered by net cash provided by investing activities, totaling $2.61 million in 2025, primarily from the sale of non-core land parcels. Further strengthening its financial runway, Rise Gold successfully closed a financing round on October 24, 2025, raising US$7.0 million through the issuance of 28.0 million units at US$0.25 per unit. Each unit included one common share and one share purchase warrant exercisable at US$0.45 for three years. Management estimates that, with this recent equity financing, the company possesses sufficient funds to continue as a going concern for the next 12 months. However, the company acknowledges the absence of agreements for additional long-term financing, and there is no assurance that such funding will be available on acceptable terms.

Competitive Dynamics and Strategic Positioning

Rise Gold operates within the intensely competitive gold mining industry, where it is a niche, regionally focused player. Its primary competitors include large, established mining companies such as Barrick Gold Corporation (GOLD), Newmont Corporation (NEM), Kinross Gold Corporation (KGC), and Agnico Eagle Mines Limited (AEM). These industry giants possess substantial capabilities, greater financial and technical resources, and diversified global portfolios, allowing them to undertake larger projects and often achieve superior economies of scale.

Rise Gold's competitive positioning is primarily anchored in its 100% ownership of the Idaho-Maryland Gold Mine Property, which offers a unique value proposition through its historical high-grade production and localized operational control. This focused approach could allow for greater efficiency in specific exploration and development efforts within the Grass Valley district, potentially leading to better cost control in its core areas. However, its smaller scale and limited diversification expose it to higher risks associated with commodity price volatility and regulatory challenges. Compared to its larger rivals, Rise Gold typically exhibits lower cash flow generation and profitability margins, and may lag in innovation speed due to more constrained R&D budgets. The company's strategic response to this competitive landscape is to aggressively pursue its legal avenues to unlock its core asset's value and to explore additional mineral potential, such as tungsten, to broaden its future revenue base and enhance its strategic importance in the critical metals sector.

Key Risks and Challenges

Investing in Rise Gold Corp. carries significant risks inherent to an exploration-stage company. The primary risk remains the outcome of the ongoing litigation to secure vested mining rights; a negative court decision could severely impact the company's ability to commence mining operations and necessitate a shift to a potentially lengthy and uncertain compensation claim. Even if the legal battle is successful, the company faces substantial capital expenditure requirements for development, permitting, and construction, with no guarantee of securing future financing on favorable terms.

Commodity price volatility for both gold and tungsten could significantly affect future revenues and project economics. Furthermore, as an exploration company, there are inherent uncertainties in mineral resource estimates, and the actual grade of ore mined may differ from projections. The company's reliance on a small number of key employees and a material weakness in internal control over financial reporting due to insufficient personnel also present operational risks. Potential dilution from future equity financings and the intense competition for capital, properties, and skilled labor in the mining industry are ongoing concerns.

Conclusion

Rise Gold Corp. presents a compelling, albeit high-risk, investment narrative centered on the potential revival of the historic Idaho-Maryland Gold Mine. The company's strategic focus on asserting its vested mining rights through ongoing litigation represents a binary event, with the Superior Court's decision in early 2026 acting as a critical catalyst for its future. This legal gambit, coupled with recent successful financing and the promising exploration of tungsten as a critical metal, underscores a determined effort to unlock substantial value from a historically rich asset.

While the company faces significant challenges typical of an exploration-stage entity, including a history of losses, substantial capital requirements, and intense competition, its unique asset and proactive legal and diversification strategies offer a distinct investment thesis. The ability to transition from legal victories to operational success, supported by a robust financial strategy and potential for critical metal production, will be paramount for Rise Gold to realize its full potential and establish a sustainable position within the competitive mining landscape.