Executive Summary / Key Takeaways

• Silver North Resources Ltd. (OTCQB: TARSF) is strategically transforming into a focused silver exploration company, targeting high-grade deposits in established districts like the Keno Hill and Silvertip-Midway regions of the Yukon, aligning with the increasing industrial demand for silver in sustainable technologies.
• The company's exploration approach, centered on identifying Keno-style vein mineralization and Carbonate Replacement Deposit (CRD) systems, is proving effective, with recent 2024 drilling at the Haldane property yielding significant high-grade silver and gold intersections.
• Despite being an exploration-stage company with no operating revenue, Silver North has improved its liquidity, with cash increasing to C$709,647 as of September 30, 2024, and has secured recent financings to fund its aggressive 2025 exploration programs.
• Strategic partnerships, notably with Coeur Mining Inc. on the Tim Property, provide external funding and expertise, validating the geological potential of Silver North's assets and mitigating some of the inherent capital risks of exploration.
• While an investment remains speculative due to reliance on financing and exploration success, the company's focused portfolio, promising drill results, and strategic alliances position it for potential long-term value creation in a competitive, silver-hungry market.

The Strategic Reorientation Towards Silver's Future

Silver North Resources Ltd. is an exploration-stage mineral company undergoing a significant strategic reorientation, focusing its efforts on high-grade silver exploration in Canada's Yukon Territory. This pivot, formalized by its name change in August 2023, reflects a clear vision to capitalize on silver's pivotal role in sustainable technologies and the burgeoning industrial demand driven by sectors like solar, artificial intelligence, and e-mobility. The company's strategy involves both 100% owned projects and strategic partnerships, aiming to unlock value through targeted exploration in geologically prospective regions.

The company's history, originating as Tarsis Capital Corporation in 2005 and evolving through various acquisitions and consolidations, has culminated in this focused silver mandate. Early acquisitions, such as the MOR, Tim, and Goz Creek properties in 2007, laid the groundwork for its exploration endeavors. Subsequent portfolio adjustments, including the divestment of non-core assets in Nevada and Colorado in 2023 and 2024, underscore a disciplined approach to concentrate capital and expertise on its most promising silver prospects. This strategic streamlining is crucial in the highly competitive mineral industry, where larger players often possess greater resources.

Geological Edge: Targeting High-Grade Silver Systems

Silver North's differentiation in the competitive exploration landscape stems from its focused geological approach, targeting specific, high-grade silver mineralization styles within established districts. This is not a proprietary technology in the traditional sense, but rather a specialized expertise in identifying and advancing particular geological models that have historically yielded significant discoveries. The company's primary targets are Keno-style silver-lead-zinc vein systems and Carbonate Replacement Deposit (CRD) systems, both known for their potential to host rich mineralization.

At the Haldane property in the Keno Hill Silver District, Silver North is exploring for structurally-controlled, silver-bearing veins. Recent drilling in 2024 at the Main Fault target successfully intersected "strong Keno District style veining characteristics," indicating the presence of the desired geological environment. Similarly, at the Tim property and the newly optioned GDR Project, the company is focused on CRD-style mineralization. The 2024 drilling program at Tim, funded by partner Coeur Mining Inc. , confirmed the presence of a CRD system through diagnostic features such as "fugitive calcite veining that fluoresces in UV light (displaying the classic “barbeque” pink and orange fluorescence), re-crystallization of the host limestones, disseminated pyrite – sphalerite and galena sulphide and derived oxide mineralization, and massive pyrrhotite with scheelite mineralization (an important tungsten bearing mineral)." These geological indicators provide a tangible benefit by guiding exploration efforts towards areas with a higher probability of economic discovery, potentially reducing overall exploration risk and enhancing the efficiency of capital deployment. For investors, this focused geological expertise and the presence of these diagnostic features suggest a higher probability of discovering commercially viable deposits, which is fundamental to the company's long-term growth strategy and competitive positioning against broader-based explorers.

Operational Momentum and Project Advancement

Silver North is actively advancing its core silver projects, with recent operational successes and clear plans for 2025. The 2024 drill program at the 100% owned Haldane property, the first by the company on the Main Fault, yielded compelling results. Intersections included a high-grade oxidized and brecciated siderite vein fault material returning 1.83 meters (true width) averaging 1,088 g/t silver and 3.90 g/t gold, as well as a wider intersection of 28.36 meters (true width) averaging 130 g/t silver, 0.55% lead, and 0.52% zinc. These results validate the Main Fault as a viable silver target with significant potential. The company plans a ten-hole, approximately 2,500-meter diamond drilling program at Haldane in mid-August 2025, primarily targeting the Main Fault to expand its down-dip and strike potential. One hole may also test the Bighorn target, following up on previous silver-bearing vein intersections.

The Tim property, under option to Coeur Mining Inc. , also saw significant activity in 2024. Coeur's drilling confirmed the presence of a CRD-style system and favorable host rocks. The best intercept from this program returned 3.39 meters of 52.8 g/t silver, 0.28 g/t gold, 0.11% lead, and 0.27% zinc within the Wolf Fault. Coeur is expected to conduct follow-up drilling in 2025, leveraging the 2024 data to prioritize targets. This partnership with a major producer like Coeur Mining provides external validation and funding, a critical strategic advantage for an exploration-stage company.

Further expanding its footprint in the Silvertip-Midway District, Silver North optioned the GDR Silver Project in May 2024. This project, comprising the Veronica, MR, and MFW claim groups, is prospective for CRD mineralization similar to that at Coeur's nearby Silvertip Mine. The Veronica claims, in particular, host an unexplained 450-meter by 450-meter multi-element soil anomaly of silver, lead, and zinc. A C$100,000 field program is budgeted for Veronica in late July 2025, with C$30,000 eligible for reimbursement under the Yukon Mineral Exploration Program (YMEP), further demonstrating a prudent approach to exploration funding.

Financial Health and Capital Strategy

As an exploration-stage company, Silver North Resources does not generate operating revenue, and its financial performance is characterized by ongoing losses and a reliance on external financing. For the fiscal year ended September 30, 2024, the company reported a comprehensive loss of C$2.03 million (C$0.05 per share), an increase from C$817,618 (C$0.02 per share) in 2023. This larger loss was primarily due to increased expenses, including C$336,735 in share-based payments and C$602,716 for investor relations, alongside a C$717,378 write-down of exploration and evaluation assets as non-core properties were divested.

Despite these losses, the company has shown an improvement in its liquidity position. As of September 30, 2024, Silver North had a working capital deficit of C$361,496, an improvement from C$683,657 in the prior year, with cash balances rising significantly to C$709,647 from C$135,203. This improvement was largely driven by financing activities, which provided C$2.22 million in cash, primarily from the issuance of C$2.39 million in common shares.

Management anticipates approximately C$600,000 in Selling, General & Administrative (SG&A) expenses for fiscal 2025 and plans to raise additional funds through common and flow-through share issuances to finance its exploration programs. The company also holds C$91,124 in unspent flow-through exploration funds earmarked for the Haldane project in fiscal 2025. The absence of long-term debt (Debt/Equity ratio of 0.00%) provides financial flexibility, though the ongoing need for equity financing poses a risk of dilution for existing shareholders.

Competitive Landscape and Strategic Positioning

The mineral exploration industry is intensely competitive, with Silver North Resources vying for properties and joint venture agreements against companies that often possess greater financial and operational scale. Key competitors include established silver producers like Coeur Mining , Pan American Silver (PAAS), First Majestic Silver (AG), and Hecla Mining . These larger entities benefit from diversified portfolios, established production, and robust cash flow generation, allowing for substantial investment in exploration and development.

Silver North's strategic positioning, however, leverages its focus on high-grade silver districts and its ability to form strategic partnerships. Its Haldane project is situated next to Hecla Mining Inc.'s (HL) Keno Hill Mine, and the Tim project is under option to Coeur Mining Inc. , both indicating the company's presence in highly prospective areas. CEO Jason Weber emphasizes that targeting these established districts, where new Keno vein-style discoveries are being made, sets Silver North apart. While Silver North's current financial metrics, such as its 0.00% gross, operating, and net profit margins, reflect its exploration stage and contrast sharply with producing competitors, its P/B ratio of 2.51 is within the range of its peers, suggesting market recognition of its asset potential.

The partnership with Coeur Mining on the Tim property is a testament to the geological prospectivity of Silver North's assets, providing external funding and expertise that a smaller company might otherwise struggle to secure independently. This model allows Silver North to advance its projects while mitigating some of the capital intensity and risk associated with early-stage exploration.

Risks and Outlook

Investing in Silver North Resources carries inherent risks, primarily due to its exploration-stage nature. The company's auditors have issued a "Going Concern Opinion" for the fiscal year ended September 30, 2024, underscoring its dependence on securing additional financing. Failure to raise sufficient funds could lead to a significant reduction in exploration and operational budgets, potentially forcing the company to relinquish mineral claims or cease operations. Mineral exploration is inherently speculative, with no guarantee of discovering economically recoverable reserves, and commodity price volatility for silver, gold, lead, and zinc can significantly impact future profitability. Furthermore, the company's unhedged exposure to foreign currency fluctuations, particularly between the Canadian and U.S. dollars, presents an additional financial risk.

Despite these challenges, the outlook for Silver North is anchored in its focused exploration strategy and the increasing demand for silver. The planned 2025 drill programs at Haldane and the Veronica project, coupled with Coeur Mining's continued exploration at Tim, represent significant catalysts. The company's commitment to high-grade silver districts, combined with strategic partnerships and a disciplined approach to capital allocation, positions it to potentially benefit from the long-term structural silver shortage driven by green and high-tech industries.

Conclusion

Silver North Resources Ltd. is carving out a distinct identity in the precious metals sector, strategically aligning its exploration efforts with the burgeoning demand for silver in sustainable technologies. The company's deliberate focus on high-grade silver deposits in proven districts, exemplified by its Haldane and Tim projects, represents a calculated approach to maximize discovery potential. Recent drill results from Haldane's Main Fault highlight the promise of its geological targets, while the ongoing partnership with Coeur Mining (CDE) on the Tim property validates the quality of its assets and provides crucial financial and technical support.

While the inherent risks of an exploration-stage company, particularly its reliance on external financing and the speculative nature of mineral discovery, necessitate a discerning investment approach, Silver North's improved liquidity and clear operational roadmap for 2025 offer a compelling narrative. The company's ability to leverage its geological expertise and strategic alliances to advance its core silver projects, against a backdrop of increasing industrial silver demand, positions it as a noteworthy contender in the pursuit of future silver supply. The success of its upcoming drill programs and continued access to capital will be critical determinants of its trajectory in this dynamic market.