(“Ero”, the “Company”, or “we”) as at, and for the three months ended March 31, 2026, and related notes thereto, which are prepared in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting as permitted by the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”). All references in this MD&A to “Q1 2026” and “Q1 2025” are to the three months ended March 31, 2026 and March 31, 2025, respectively. As well, this MD&A should be read in conjunction with the Company’s December 31, 2025 audited consolidated financial statements and MD&A. All dollar amounts are expressed in United States (“US”) dollars and tabular amounts are expressed in thousands of US dollars, unless otherwise indicated. References to “$”, “US$”, “dollars”, or “USD” are to US dollars, references to “C$” are to Canadian dollars, and references to “R$” or “BRL” are to Brazilian Reais.

This MD&A refers to various alternative performance (Non-IFRS) measures, including copper C1 cash cost, realized copper price, gold C1 cash cost, gold all-in sustaining cost (“AISC”), realized gold price, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share attributable to owners of the Company, net (cash) debt, working capital and available liquidity. Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" for a discussion of non-IFRS measures.

This MD&A contains “forward‐looking statements” that are subject to risk factors set out in a cautionary note contained at the end of this MD&A. The Company cannot assure investors that such statements will prove to be accurate, and actual results and future events may differ materially from those anticipated in such statements. The results for the periods presented are not necessarily indicative of the results that may be expected for any future period. Investors are cautioned not to place undue reliance on such forward-looking statements. All information contained in this MD&A is current and has been approved by the Board of Directors of the Company (the “Board”) as of May 4, 2026, unless otherwise stated.

Ero is a Brazil-focused, growth-oriented mining company with a diversified portfolio of copper and gold assets, headquartered in Vancouver, B.C. The Company operates two copper mines – the Caraíba Operations in Bahia State and the Tucumã Operation in Pará State – as well as the Xavantina Operations, a producing gold mine in Mato Grosso State. In addition to its operating assets, Ero is advancing the Furnas Copper-Gold Project, located in the mineral-rich Carajás Province in Pará State, through a definitive earn-in agreement with Vale Base Metals to acquire a 60% interest in the project.

(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

(2)    The Company declared commercial production at the Tucumã Operation effective July 1, 2025. As such, 2025 copper C1 cash cost for the Tucumã Operation and consolidated copper operations reflect only Tucumã Operation's costs from Q3 2025 onward.

(3)    Gold sold in concentrate includes gold ounces produced from the CIL circuit and the pond.        

(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

•Consolidated copper production totaled 17,287 tonnes in concentrate at C1 cash costs(1) of $2.39 per pound produced.

◦The Caraíba Operations produced 8,826 tonnes of copper in concentrate, reflecting strong throughput rates and the continued benefit of the 2025 plant debottlenecking initiative. Planned stope sequencing at the Pilar Mine drove lower mined copper grades during the period, resulting in C1 cash costs(1) of $2.79 per pound produced.

◦The Tucumã Operation produced 8,461 tonnes of copper in concentrate at C1 cash costs(1) of $1.97 per pound produced, reflecting higher plant throughput supported by the early completion in Q4 2025 of planned mill liner replacement maintenance originally scheduled for Q1 2026, and lower planned processed copper grades.

•The Xavantina Operations undertook an important, and necessary, ventilation project during the quarter resulting in production of 5,495 ounces during the quarter at C1 cash costs(1) and AISC(1) of $2,120 and $4,441 per ounce, respectively. Gold sales in the period totaled 10,330 ounces, including contributions from Xavantina's gold concentrate sales program.

•Quarterly financial performance benefitted from solid operating results at the Caraíba and Tucumã Operations along with strong metal prices.

◦Net income attributable to the owners of the Company was $108.8 million ($1.04 per share on a diluted basis).

◦Adjusted net income attributable to the owners of the Company(1) was $72.4 million ($0.69 per share on a diluted basis).

◦Cash flow from operations was $92.8 million.

•Available liquidity(1) at quarter-end was $146.2 million, including $91.2 million in cash and cash equivalents and $55.0 million of undrawn availability under the Company's senior secured revolving credit facility ("Senior Credit Facility"). During the quarter, a $10.0 million repayment on the Senior Credit Facility contributed to a reduction in total balance sheet debt of over $25 million to $581.9 million, from $607.1 million at year-end 2025.

•Consolidated copper production guidance of 67,500 to 77,500 tonnes is expected to be second-half weighted, reflecting increasing projected throughput volumes and copper grades at the Caraíba Operations in H2 2026 and higher mill throughput at the Tucumã Operation over the remaining quarters of the year, partially offset by a planned decline in copper grades.

•At the Xavantina Operations, the installation and tie-in of ventilation and cooling infrastructure undertaken during Q1 was substantially complete at the end of April. As a result, mining rates, mill throughput and processed grades are expected to increase sequentially over the remaining quarters of the year, with full-year gold production of 40,000 to 50,000 ounces projected to be second-half weighted. Gold concentrate sales are expected to benefit meaningfully from dryer conditions as the rainy season ends, with average quarterly rainfall at Xavantina typically declining from approximately 650 to 700 millimeters in Q1 to approximately 60 millimeters in Q2 and Q3, significantly reducing drying times and supporting higher concentrate sales volumes through the remainder of the year.

•Consolidated copper C1 cash cost guidance is maintained at $2.15 to $2.35 per pound produced, with unit costs expected to decrease in H2 2026 when processed grades at the Caraíba Operations are projected to increase. Full-year gold C1 cash cost(1) and AISC(1) guidance for the Xavantina Operations is maintained at $1,000 to $1,250 and $2,000 to $2,500 per ounce, respectively, with unit costs expected to improve with the ventilation and cooling system supporting higher mine production levels.

•Full-year capital expenditure guidance is maintained at $275 to $320 million.

The Company continues to advance the Furnas Copper-Gold Project, publishing an inaugural Preliminary Economic Assessment on March 30, 2026.(2)

•The Preliminary Economic Assessment ("PEA") for the Furnas Copper-Gold Project ("Furnas" or the "Project") was filed on SEDAR+ on March 30, 2026. The PEA outlines a large-scale, long-life operation with compelling economics, including an after-tax net present value (8%) of $2.0 billion and a 27.0% after-tax internal rate of return based on long-term copper, gold and silver prices of $4.60 per pound, $3,300 per ounce, and $40.00 per ounce, respectively.

•During Q1 2026, the Company completed over 12,000 meters of drilling at Furnas as part of the 50,000-meter 2026 drill program. The program is focused on two primary objectives: (i) upgrading inferred mineral resources to higher confidence categories ahead of future technical studies and (ii) extending mineralization along strike within the high-grade zones adjacent to planned infrastructure. Additional site activities during the quarter included advancement of engineering, environmental and permitting work.

The PEA is preliminary in nature and includes inferred mineral resources, which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

(2)    For more information on the Furnas PEA, please see the Company's press release dated March 30, 2026.

(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

The Caraíba Operations produced 8,826 tonnes of copper in concentrate during the quarter at a C1 cash cost(1) of $2.79 per pound of copper produced.

Copper production declined approximately 15% from the prior quarter, reflecting lower processed grades due to planned stope sequencing at the Pilar Mine and reduced contributions from the Surubim pit during the quarter due to seasonal rainfall.

Copper production from the Caraíba Operations is expected to total between 35,000 to 40,000 tonnes in 2026, with processed tonnage and grades expected to be similar in Q2 before increasing in H2 2026. Full-year 2026 copper C1 cash cost(1) guidance of $2.30 to $2.50 per pound produced is maintained, with unit costs expected to be above the guidance range in H1 2026 and decline sequentially through the third and fourth quarters.

(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

(2)    The Company declared commercial production at the Tucumã Operation effective July 1, 2025. As such, 2025 copper C1 cash cost for the Tucumã Operation and consolidated copper operations reflect only Tucumã Operation's costs from Q3 2025 onward.

The Tucumã Operation produced 8,461 tonnes of copper in concentrate during Q1 2026 at a C1 cash cost(1) of $1.97 per pound of copper produced.

Mill throughput showed steady performance increasing by more than 9% quarter-on-quarter and approximately 90% when compared to Q1 2025. Copper production decreased approximately 9% quarter-on-quarter, reflecting lower processed copper grades, partially offset by higher plant throughput.

Copper production from the Tucumã Operation is expected to total between 32,500 to 37,500 tonnes in 2026, modestly weighted to the second half of the year on higher plant throughput. Full-year C1 cash cost(1) guidance for Tucumã is maintained at $1.95 to $2.15 per pound produced.

In Q1 2026, the Company ordered modular tailings filters to augment Tucumã's tailings filtration circuit. The additional filters are expected to be installed and commissioned in H2 2026 and, accordingly, any incremental filtration capacity and associated plant throughput benefits have not been incorporated into full-year operational guidance.

(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

The Xavantina Operations produced 5,495 ounces of gold during the quarter at C1 cash costs(1) and AISC(1) of $2,120 and $4,441 per ounce, respectively.

As expected, gold production declined from the previous quarter as mining activity was impacted during Q1 by the installation and tie-in of ventilation and cooling infrastructure and the installation of additional ground support, both of which are expected to support higher development and mining rates beginning in the second quarter.

Gold production from the Xavantina Operations is expected to total between 40,000 to 50,000 ounces in 2026 at full-year C1 cash costs(1) of $1,000 to $1,250 per ounce and AISC(1) of $2,000 to $2,500 per ounce. The installation and tie-in of the ventilation and cooling infrastructure was advanced during Q1 and was substantially complete at the end of April. As a result, mining rates, mill throughput and processed grades are expected to increase through the remainder of the year, with full-year production projected to be significantly second-half weighted and unit costs expected to decline in conjunction with higher production levels.

Quarterly gold sales totaled 10,330 ounces, including contributions from Xavantina's gold concentrate sales program, which declined as expected relative to the prior quarter due to seasonal rainfall that extends drying time. Gold concentrate sales are expected to benefit from dryer seasonal conditions throughout the remainder of the year.

Consolidated copper production guidance is maintained in the range of 67,500 to 77,500 tonnes. Full-year copper production is expected to be second-half weighted at both the Caraíba and Tucumã Operations. Production at Caraíba in Q2 is expected to be broadly similar to Q1 before increasing in H2 2026, driven by higher processed grades from planned mine sequencing along with higher throughput levels. Production at Tucumã is expected to be modestly higher in H2 2026 on higher plant throughput, partially offset by lower planned copper grades.

Full-year consolidated copper C1 cash cost(1) guidance is maintained at $2.15 to $2.35 per pound produced, with costs expected to be above the guidance range in H1 2026 and to decrease sequentially through H2 2026 as processed grades at the Caraíba Operations increase.

At the Xavantina Operations, gold production from mining and processing operations is expected to total between 40,000 to 50,000 ounces in 2026. Gold production is expected to be lowest in Q1, with mining rates, mill throughput and processed grades expected to increase sequentially through the remainder of the year with work on the ventilation and cooling system tie-in substantially complete at the end of April. As a result, production at Xavantina is expected to be weighted towards H2 2026.

Full-year gold C1 cash cost(1) and AISC(1) guidance for the Xavantina Operations is maintained at $1,000 to $1,250 and $2,000 to $2,500 per ounce, respectively. Unit costs are expected to be highest in Q1 and to decline over the remaining quarters of the year as production volumes increase.

(1)    Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

Note:    Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company’s SEDAR+ and EDGAR filings, including the most recent Annual Information Form ("AIF"), for a detailed summary of risk factors.

(1) Please refer to the section titled "Alternative Performance (Non-IFRS) Measures" within this MD&A.

Total capital expenditures guidance remains unchanged at a range between $275 to $320 million.

Note:    Guidance is based on estimates and assumptions including, but not limited to, mineral reserve estimates, grade and continuity of interpreted geological formations and metallurgical recovery performance. Please refer to the Company’s SEDAR+ and EDGAR filings, including the most recent AIF, for a detailed summary of risk factors.

The following table provides a summary of the financial results of the Company for Q1 2026 and Q1 2025. Tabular amounts are in thousands of US dollars, except share and per share amounts.

Notes:

1.    Revenues from copper sales in Q1 2026 was $220.7 million (Q1 2025 - $109.5 million) on sale of 39.6 million lbs of copper (Q1 2025 - 26.7 million lbs). The increase in copper revenues was primarily attributed to a 48% increase in copper sold and a 36% higher average realized price against the comparative period.

Revenues from gold sales in Q1 2026 was $42.5 million (Q1 2025 - $15.6 million) on sale of 6,019 ounces of gold in dore (Q1 2025 - 5,834 ounces) and 4,311 ounces of gold in concentrate (Q1 2025 - nil ounces) at an average realized price of $4,195 per ounce (Q1 2025 - $2,705 per ounce). The increase in gold revenues was primarily driven by 55% higher realized gold price and 77% higher sales volumes.

2.    Cost of sales for Q1 2026 from copper sales was $136.2 million (Q1 2025 - $59.5 million). Cost of sales includes production costs which primarily consist of $33.0 million (Q1 2025 - $14.7 million) in depreciation and depletion, $25.8 million (Q1 2025 - $6.3 million) in contracted services, $23.0 million (Q1 2025 - $16.0 million) in salaries and benefits, $17.5 million (Q1 2025 - $10.2 million) in materials and consumables, $15.8 million (Q1 2025 - $8.8 million) in maintenance costs, $11.1 million (Q1 2025 - $3.6 million) in sales expenses, $5.3 million (Q1 2025 - $3.6 million) in utilities, and $3.8 million decrease (Q1 2025 - $4.1 million increase) in inventories. The increase in cost of sales in Q1 2026 compared to Q1 2025 was primarily attributed to a $41.8 million increase in cost of sales at the Tucumã Operation upon achieving commercial production in Q3 2025, as well as a $34.9 million increase at the Caraíba Operations reflecting higher mining and processing costs due to increased ore processed to offset lower head grades.

Cost of sales for Q1 2026 from gold sales was $21.1 million (Q1 2025 - $10.1 million). Cost of sales includes production costs which primarily consist of $5.0 million (Q1 2025 - $3.6 million) in depreciation and depletion, $4.5 million (Q1 2025 - $2.9 million) in salaries and benefits, $2.4 million (Q1 2025 - $1.5 million) in materials and consumables, $3.0 million (Q1 2025 - $1.9 million) in contracted services, $1.3 million (Q1 2025 - $0.7 million) in maintenance costs, $0.9 million (Q1 2025 - $0.5 million) in utilities, and $1.7 million decrease (Q1 2025 - $1.3 million increase) in inventories. The increase in cost of sales as compared to Q1 2025 reflects higher mining costs as the operation transitioned to mechanized mining, as well as increase in tonnes processed to offset lower head grades.

3.    Finance expense for Q1 2026 was $11.1 million (Q1 2025 - $4.7 million) and was primarily comprised of interest on loans and borrowings of $5.4 million (Q1 2025 - nil), other finance expense of $2.3 million (Q1 2025 - $2.7 million), accretion of deferred revenue of $1.9 million (Q1 2025 - $0.6 million), accretion of asset retirement obligations of $0.8 million (Q1 2025 - $0.8 million), and lease interest of $0.7 million (Q1 2025 - $0.6 million). The increase in finance expense from Q1 2025 was primarily due to a decrease in capitalization of borrowing costs after commercial production was achieved at the Tucumã Operation effective July 1, 2025. During the quarter, $4.9 million (Q1 2025 - $11.0 million) in borrowing costs were capitalized to projects in progress primarily related to Deepening project.

4.    Foreign exchange gain for Q1 2026 was $53.7 million (Q1 2025 - $58.4 million gain). This amount is primarily comprised of $34.6 million (Q1 2025 - $45.1 million gain) in foreign exchange gain on USD denominated debt at MCSA for which the functional currency is the BRL, $16.5 million (Q1 2025 - $16.8 million gain) of unrealized foreign exchange gain on derivative contracts, and $7.3 million (Q1 2025 - $2.2 million loss) of realized foreign exchange gain on derivative contracts, partially offset by other foreign exchange losses of $4.8 million (Q1 2025 - $1.3 million losses). The unrealized foreign exchange gain on USD denominated debt and on derivative contracts was a result of a 5% strengthening of the BRL against the USD during the period.

5.    In Q1 2026, the Company recognized $17.9 million in income tax expense (Q1 2025 $14.7 million expense). The increase in income tax expense was primarily a result of an increase in income before taxes as compared to the same quarter of the prior year.

6.    The foreign currency translation gain is a result of a fluctuation of the BRL against the USD during Q1 2026, which strengthened from approximately 5.50 BRL per US dollar at the beginning of Q1 2026 to approximately 5.22 BRL per US dollar by the end of the quarter, when translating the net assets of the Company’s Brazilian subsidiaries to USD for presentation in the Company’s condensed consolidated interim financial statements.

The following table presents selected financial information for each of the most recent eight quarters. Tabular amounts are in millions of US Dollars, except share and per share amounts.

Notes:

1.During Q1 2026, the Company recognized net income of $109.3 million compared to net income of $78.7 million in the preceding quarter. The increase in net income compared to the prior quarter was primarily attributable to a $77.0 million increase in foreign exchange gains ($53.7 million gain compared to $23.3 million loss in the prior quarter), a $6.3 million decrease in share-based compensation, a $5.6 million decrease in income tax expense, partially offset by a $58.5 million decrease in gross profit and a $1.8 million increase in other expenses.

2.During Q4 2025, the Company recognized net income of $78.7 million compared to net income of $36.5 million in the preceding quarter. The increase in net income compared to the prior quarter was primarily attributable to a $107.0 million higher gross profit, partially offset by $45.4 million lower foreign exchange gain ($23.3 million loss compared to $22.1 million gain in the prior quarter), $10.7 million increase in income tax expense, $6.2 million increase in other expenses, and $2.2 million increase in share-based compensation from mark-to-market revaluation of share-based compensation liability.

3.During Q3 2025, the Company recognized net income of $36.5 million compared to net income of $71.0 million in the preceding quarter. The decrease in net income compared to the prior quarter was primarily attributable to a $16.5 million lower foreign exchange gain, $9.9 million lower gross profit and $5.4 million higher finance expense from the cessation of capitalization of borrowing costs at the Tucumã Operation following the declaration of commercial production on July 1, 2025.

4.During Q2 2025, the Company recognized net income of $71.0 million compared to net income of $80.6 million in the preceding quarter. The decrease in net income was primarily attributable to a lower foreign exchange gain of $38.6 million in the current quarter compared to $58.4 million in the preceding quarter, partially offset by a higher gross profit of $67.3 million in the current quarter compared to $55.5 million in the preceding quarter.

5.During Q1 2025, the Company recognized net income of $80.6 million compared to net loss of $48.9 million in the preceding quarter. The increase in net income was primarily attributable to foreign exchange gains of $58.4 million compared to foreign exchange losses of $92.8 million in the preceding quarter, partially offset by an income tax expense of $14.7 million compared to an income tax recovery of $5.9 million in the preceding quarter.

6.During Q4 2024, the Company recognized net loss of $48.9 million compared to net income of $41.4 million in the preceding quarter. The decrease in net income was primarily attributable to foreign exchange losses of $92.8 million compared to foreign exchange gains of $17.2 million in the preceding quarter, partially offset by income tax recovery of $5.9 million compared to income tax expense of $8.3 million in the preceding quarter.

7.During Q3 2024, the Company recognized net income of $41.4 million compared to net loss of $53.4 million in the preceding quarter. The increase in net income was primarily attributable to higher revenues, as well as foreign exchange gains of $17.2 million compared to foreign exchange losses of $70.5 million in the preceding quarter, as well as a $10.7 million write-down in exploration and evaluation assets recognized in the preceding quarter.

8.During Q2 2024, the Company recognized net loss of $53.4 million compared to net loss of $6.8 million in the preceding quarter. The increase in loss was primarily attributable to foreign exchange losses of $70.5 million compared to $19.0 million in the preceding quarter. The change in foreign exchange gain or loss was primarily driven by volatility of the Brazilian Real against the US Dollar during the respective periods. In addition, during the quarter, the Company terminated the Fides option agreement, resulting in a write-down in exploration and evaluation assets of $10.7 million.

As at March 31, 2026, the Company had cash and cash equivalents of $91.2 million and available liquidity of $146.2 million. Cash and cash equivalents were primarily comprised of cash held with reputable financial institutions and are invested in highly liquid short-term investments with maturities of three months or less. The funds are not exposed to liquidity risk and there are no restrictions on the ability of the Company to use these funds to meet its obligations.

Cash and cash equivalents decreased by $14.2 million from December 31, 2025. The Company’s cash flows from operating, investing, and financing activities for the three months ended March 31, 2026, are summarized as follows:

•Cash from operating activities of $92.8 million, primarily consists of:

◦$125.2 million of adjusted EBITDA (see Non-IFRS Measures);

◦$24.1 million of net change in non-cash working capital items;

◦$5.3 million of amortization of non-cash deferred revenues; and

◦$2.4 million of derivative contract settlements.

Partially offset by:

•Cash used in investing activities of $60.1 million, including:

◦$55.8 million of additions to mineral property, plant and equipment; and

◦$5.0 million of additions to exploration and evaluation assets;

◦$0.7 million in interest received.

•Cash used in financing activities of $42.5 million, primarily consists of:

◦$21.4 million of principal repayments on loans and borrowings;

◦$16.8 million of interest paid on loans and borrowings; and

◦$5.2 million of lease payments;

◦$2.7 million of new loans and borrowings; and

◦$1.1 million of proceeds from exercise of stock options.

As at March 31, 2026, the Company had working capital of $66.2 million.

The Company’s primary sources of capital are comprised of cash from operations, and cash and cash equivalents on hand. The Company continuously monitors its liquidity position and capital structure and, based on changes in operations and economic conditions, may adjust such structure by issuing new common shares or new debt as necessary. Taking into consideration expected cash flow from existing operations and available liquidity, management believes that the Company has sufficient capital to fund its planned operations and activities, and other initiatives, for the foreseeable future.

At March 31, 2026, the Company had available liquidity of $146.2 million, including $91.2 million in cash and cash equivalents and $55.0 million of undrawn availability under its Senior Credit Facility.

The Company has a senior revolving credit facility (the "Senior Revolving Credit Facility") which has a borrowing limit of $200 million and matures in December 2028. The applicable interest margin is based on sliding scales of SOFR plus 2.00% to 4.25% and commitment fee ranges from 0.45% to 0.96%, based on the Company's net leverage ratio, with lower leverage ratios resulting in lower pricing.

In relation to its loans and borrowings, the Company is required to comply with certain financial covenants. As of the date of the condensed consolidated interim financial statements, the Company is in compliance with these covenants. The loan agreements also contain covenants that could restrict the ability of the Company and its subsidiaries, including MCSA, Ero Gold, and NX Gold, to, among other things, incur additional indebtedness needed to fund its respective operations, pay dividends or make other distributions, make investments, create liens, sell or transfer assets or enter into transactions with affiliates. There are no other restrictions or externally imposed capital requirements of the Company.

On March 28, 2025, the Company extended the terms of the Original Xavantina Stream with Royal Gold to expand the area of influence from which production is subjected to the arrangement to include additional tenements acquired by the Company since the Original Xavantina Stream was completed, and extend the gold delivery threshold milestone from 93,000 ounces of gold to 160,000 ounces of gold, before decreasing to 10% of gold produced over the remaining life of the mine. In exchange, the Company received additional upfront cash consideration of $50.0 million. The delivery of additional ounces under the amended stream is expected to commence in 2028.

The Company has a precious metals purchase agreement (the "Xavantina Gold Stream") with RGLD Gold AG ("Royal Gold"), a wholly-owned subsidiary of Royal Gold, Inc., whereby the Company is obligated to sell a portion of its gold production from the Xavantina Operations at contract prices.

Refer to the "Liquidity Risk" section for further information on the Company's contractual obligations and commitments.

The Company examines the various financial instruments and risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, currency risk, commodity price risk and interest rate risk. Where material, these risks are reviewed and monitored by the Board.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers. The carrying amount of the financial assets below represents the maximum credit risk exposure as at March 31, 2026 and December 31, 2025:

The Company invests cash and cash equivalents with financial institutions that are financially sound based on their credit rating.

The Company’s exposure to credit risk associated with accounts receivable is influenced mainly by the individual characteristics of each customer.

In 2022, one of the Company's customers in Brazil, Paranapanema S/A ("PMA"), filed for bankruptcy protection. As a preferred supplier to PMA, the Company had a note receivable arrangement with PMA, which was excluded from the judicial recovery process and provides the Company with certain judicial guarantees. According to the note receivable arrangement, repayment was structured over 24 monthly installments beginning in March 2024, with an annual interest rate equivalent to Brazil's CDI rate of approximately 11.65%.

At March 31, 2026, PMA continued to be in default of the agreement and the gross amount of accounts and note receivable from PMA was $26.1 million (December 31, 2025 - $24.4 million). Accordingly, the note receivable is considered credit impaired, and the Company recorded a credit loss provision and present value discount of $15.7 million (December 31, 2025 - $14.9 million). The carrying value of the PMA note receivable at March 31, 2026 was $10.4 million (December 31, 2025 - $9.5 million), entirely included in deposits and other non-current assets. No provision was recorded on the credit loss provision in the three months ended March 31, 2026 (nil for the three months ended March 31, 2025).

Liquidity risk is the risk associated with the difficulties that the Company may have meeting the obligations associated with financial liabilities that are settled with cash payments or with another financial asset. The Company's approach to liquidity management is to ensure as much as possible that sufficient liquidity exists to meet their maturity obligations on the expiration dates, under normal and stressful conditions, without causing unacceptable losses or with risk of undermining the normal operation of the Company.

The table below shows the Company's maturity of non-derivative financial liabilities on March 31, 2026:

The Company also has a derivative financial asset for foreign exchange collar contracts whose notional amounts and maturity information are disclosed below under foreign exchange currency risk.

The Company’s subsidiaries in Brazil are exposed to exchange risks primarily related to the US dollar. In order to minimize currency mismatches, the Company monitors its cash flow projections considering

future sales expectations indexed to US dollar variation in relation to the cash requirement to settle the existing financings.

The Company may use certain foreign exchange derivatives, including collars and forward contracts, to manage its foreign exchange risks. A summary of the Company's foreign exchange derivatives at March 31, 2026 is summarized as follows:

The aggregate fair value of the Company's foreign exchange derivatives was a net asset of $23.6 million (December 31, 2025 - net asset of $4.4 million).The fair values of foreign exchange contracts were determined based on option pricing models, forward foreign exchange rates, and information provided by the counter party.

The change in fair value of foreign exchange derivatives was a gain of $16.5 million for the three months ended March 31, 2026 (a gain of $16.8 million for the three months ended March 31, 2025), which has been recognized in foreign exchange gain.

In addition, during the three months ended March 31, 2026, the Company recognized a realized gain of $7.3 million (realized loss of $2.2 million for the three months ended March 31, 2025) related to the settlement of foreign currency forward collar contracts.

The Company is principally exposed to the variation in interest rates on loans and borrowings with variable rates of interest. Management reduces interest rate risk exposure by entering into loans and borrowings with fixed rates of interest or by entering into derivative instruments that fix the ultimate interest rate paid.

The Company is principally exposed to interest rate risk through its Senior Credit Facility and Brazilian Real denominated bank loans. Based on the Company’s net exposure at March 31, 2026, a 1% change in the variable rates would not materially impact its pre-tax annual net income.

At March 31, 2026, the Company had provisionally priced sales that are exposed to commodity price changes. Based on the Company’s net exposure at March 31, 2026, a 10% change in the price of copper and gold would have changed pre-tax net income (loss) by $8.6 million.

For a discussion of additional risks applicable to the Company and its business and operations, including risks related to the Company’s foreign operations, the environment and legal proceedings, see “Risk Factors” in the Company’s AIF.

As at March 31, 2026, the Company had no material off-balance sheet arrangements.

As of May 4, 2026, the Company had 104,277,968 common shares issued and outstanding.

The preparation of condensed consolidated interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions about future events that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results may differ from these estimates.

The Company’s material accounting policies and accounting estimates are contained in the Company’s consolidated financial statements for the year ended December 31, 2025. Judgements have been made in the determination of the functional currency of the Company and its subsidiaries, assessment of the probability of cash outflow related to legal claims and contingent liabilities and income taxes. Critical accounting estimates represent estimates that are uncertain and for which changes in those estimates could materially impact the consolidated financial statements. Key sources of estimation uncertainty, including those the Company believes to be critical accounting estimates, include derivative instruments, deferred revenue, carrying amounts of mineral properties, provision for mine closure and reclamation costs, expected credit losses and realization of value-added tax receivable. Certain of these estimates are dependent on mineral reserves and resource information. Changes in mineral reserves and resources could impact depreciation and depletion rates, asset carrying amounts and the timing of mine closure and reclamation costs. The Company determines its mineral reserves and resources based on information compiled by competent individuals. Information regarding mineral reserves and resources is used in the calculation of depreciation, depletion and determination, when applicable, of the recoverable amount of CGUs, and for forecasting the timing of reclamation and closure cost expenditures. There are numerous uncertainties inherent in the determination of mineral reserves, and assumptions that are valid at the time of determination may change significantly when new information becomes available. Changes in the methodology, forecasted prices of commodities, exchange rates, production costs or recovery rates may change the economic status of mineral reserves and may, ultimately, result in changes in the mineral reserves.

Management continuously reviews its estimates, judgments and assumptions on an ongoing basis using the most current information available. Revisions to estimates are recognized prospectively.

The following table presents capital expenditures at the Company’s operations on an accrual basis.

The Company utilizes certain alternative performance (non-IFRS) measures to monitor its performance, including copper C1 cash cost, realized copper price, gold C1 cash cost, gold AISC, realized gold price, EBITDA, adjusted EBITDA, adjusted net income attributable to owners of the Company, adjusted net income per share, net (cash) debt, working capital and available liquidity. These performance measures have no standardized meaning prescribed within generally accepted accounting principles under IFRS and, therefore, amounts presented may not be comparable to similar measures presented by other mining companies. These non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The tables below provide reconciliations of these non-IFRS measures to the most directly comparable IFRS measures as contained in the Company’s financial statements.

Unless otherwise noted, the non-IFRS measures presented below have been calculated on a consistent basis for the periods presented.

Copper C1 cash cost is a non-IFRS performance measure used by the Company to manage and evaluate the performance of its copper mining operations.

Copper C1 cash cost is calculated as C1 cash costs divided by total pounds of copper produced during the period. C1 cash costs comprise the total cost of production, including expenses related to transportation, and treatment and refining charges. These costs are net of by-product credits and incentive payments.

While copper C1 cash cost is widely reported in the mining industry as a performance benchmark, it does not have a standardized meaning and is disclosed as a supplement to IFRS measures.

The Tucumã Operation(1)