Liberty Gold Corp (TSX: LGD) reported a net income of $43.0 million for the three months ended June 30, 2026, marking a significant reversal from the $4.3 million loss recorded in the corresponding period of 2025. On a per-share basis, the company posted earnings of $0.07, representing an 800% increase over the $(0.01) loss per share from the same period last year. The company also posted a net income of $37.0 million for the first half of FY26, compared to a $7.0 million loss in H1 FY25.

The financial turnaround was primarily driven by strategic divestitures and capital management activities during the quarter. Liberty Gold closed the sale of its Goldstrike Project to Heliostar Metals Ltd for total consideration of up to $72.5 million, receiving an initial payment of $10 million in cash and approximately 1.6 million Heliostar shares valued at $2.5 million. Additionally, the company sold interests in the Gage Project to Blue Moon Metals Inc for approximately $2.7 million in shares and a 2.0% net smelter return royalty.

Balance Sheet Strengthening

The company’s liquidity position improved materially over the six-month period. Cash and cash equivalents rose to $36.5 million as of June 30, 2026, from $28.1 million at year-end 2025. Total shareholders’ equity expanded to $87.6 million, up from $37.5 million at December 31, 2025, reflecting the proceeds from asset sales and equity issuances.

Working capital strengthened to $43.5 million, compared to $26.0 million at the start of the fiscal year. Current liabilities remained stable at $5.7 million, while non-current liabilities saw a minor increase to $1.3 million. Total assets more than doubled to $94.6 million, driven by cash accumulation and receivables from the Goldstrike transaction.

Strategic Capital Raises

Liberty Gold executed multiple equity transactions to fund operations and maintain shareholder structures. Centerra Gold Inc exercised its "top-up right" twice during the first half of 2026 to maintain its 9.9% equity interest. These exercises resulted in the issuance of approximately 4.1 million common shares, generating aggregate proceeds of roughly C$5.9 million. Additionally, the company raised C$8.0 million through the exercise of common share purchase warrants linked to a May 2024 private placement.

Project Development Updates

Operational focus remains on the Black Pine Gold Project in Idaho. The US Forest Service initiated the formal National Environmental Policy Act review process, including a Notice of Intent to prepare an Environmental Impact Statement. Liberty Gold submitted a Preliminary Design Report to initiate the cyanidation permitting process with the Idaho Department of Environmental Quality.

Exploration activities are accelerating, with the 2026 drill program expanded to 50,000 metres. Recent drill results from the 2025 program included intersections such as 1.04 g/t Au over 19.8 metres and 0.64 g/t Au over 50.3 metres. The current drilling campaign prioritizes pre-production de-risking, resource growth, and permitting support.

What the Numbers Show

The shift from a $(0.01) loss per share to $0.07 profit per share in Q2 2026 highlights a fundamental change in the company’s revenue model, moving from pure exploration expenditure to monetization of non-core assets. With total assets rising from $44.1 million to $94.6 million while liabilities remained relatively flat, the balance sheet is now significantly more levered towards equity and cash, reducing near-term financing risk for the development of the flagship Black Pine project.

Liberty Gold Corp. President and CEO Jon Gilligan will present live at the Precious Metals & Critical Minerals Virtual Investor Conference on July 22, 2026. The event, hosted by VirtualInvestorConferences.com, provides a platform for the company to update investors on its U.S.-focused gold development activities, specifically the Black Pine Oxide Gold Project in southern Idaho.

The presentation is scheduled for 11:00 AM ET and will be an interactive online event allowing investors to ask questions in real time. A webcast replay will be made available following the conclusion of the event.

Liberty Gold is currently advancing the Black Pine project through feasibility and permitting phases. The project is proceeding under the U.S. federal FAST-41 framework, with a coordinated permitting schedule published on the Federal Permitting Dashboard. This framework provides visibility toward a targeted Record of Decision in early 2028.

Project Highlights

The company provided several key updates regarding the status and scale of the Black Pine project:

• FAST-41 Schedule Visibility: A coordinated federal and Idaho state permitting schedule is published, offering clear milestone visibility through to the targeted Record of Decision in early 2028.
• Formal NEPA Process Underway: The U.S. Forest Service has issued a Notice of Intent initiating the Environmental Impact Statement process, moving the project into a structured federal permitting phase.
• Mineral Resource: The most recent mineral resource estimate includes approximately 4.9 million ounces of indicated gold and approximately 1.0 million ounces of inferred gold.
• Feasibility Study Timeline: Engineering, metallurgical optimization, and mine planning are advancing in coordination with permitting, positioning the company toward a Feasibility Study targeted for Q4 2026.
• Corporate Strategy: Following the completion of the Goldstrike transaction, Liberty Gold remains focused on advancing Black Pine as a cornerstone U.S. gold development asset while maintaining capital discipline.

About Liberty Gold

Liberty Gold is a gold company focused on advancing Black Pine, its 100% owned oxide gold project in Idaho. The asset is located within the Great Basin and is described as a large-scale, past-producing, run-of-mine heap leachable gold deposit progressing toward a modern open-pit mining operation.