Comstock Inc.

Comstock Inc. expects to receive $20 million in cash in August upon closing the sale of 100% of its legacy mining assets to Mackay Precious Metals, while also targeting an immediate start of its first industry-scale solar panel recycling facility at 25% capacity that same month. CFO Judd Merrill stated the company ended the second quarter with approximately $31.4 million of cash and no debt, and total working capital of $39.9 million. CEO Corrado De Gasperis acknowledged the facility's commissioning is a few months later than previously thought but said testing of the oven will be completed by the end of July, with panel feeding beginning in August and plans to run at least 25% capacity through December. Management tied cash flow positivity to utilization, with Merrill noting that once the facility reaches 20 to 20-plus percent capacity it will generate cash from operations, and at 40 to 50 percent it will cover all corporate costs. The mining asset sale is expected to remove all reclamation liabilities and bonding requirements while retaining upside through net smelter return royalties and equity in Mackay.

Comstock Metals has entered into a Solar Material Recycling Services Agreement with Illuminate USA to recycle solar panel manufacturing byproducts from Illuminate's Pataskala, Ohio facility, the largest single-site solar panel manufacturing plant in North America. Under the agreement, Comstock Metals will provide safe transportation, sorting, and zero-landfill recycling for a broad range of manufacturing byproducts, ensuring materials are repurposed into new industrial goods. Illuminate USA operates a 1.1 million square foot facility that began production in February 2024 and has produced more than 15 million solar panels with a five-gigawatt annual capacity. The partnership aims to advance circularity in the solar energy supply chain and aligns with both companies' strategies to enable a clean lifecycle for solar energy production.

Comstock Metals has integrated, tested, and operated the robotic loading and initial conveyance system at its first-of-a-kind, industry-scale solar recycling facility, marking a significant step toward full commissioning of the 100,000 ton per year production line. The robotic arms and continuous loading and conveyance systems that feed the initial crushers are now fully operational, with capacity tests exceeding design maximums by 10%. The company will next stress-test the particle size reduction stage and continue integrating its proprietary process, aiming to have all nine distinct unit operations running together by next month. Continuous operations are expected to commence in August, while the team also works on secondary upgrading processes for offtake products like glass to meet customer specifications.

Comstock Metals, a wholly owned subsidiary of Comstock Inc., has selected Cambridge, Ohio, as one of the national locations for its industrial-scale solar panel recycling and production facility and logistics hub. The selection was made in collaboration with JobsOhio and OhioSE, and the operation is expected to create 20 full-time positions, supported by a newly announced $75,000 JobsOhio Grant. The Cambridge facility will expand capacity to ultimately produce aluminum, silver, and glass bead outputs for resale into Midwest industrial supply chains.

Comstock Inc. has agreed to sell 100% of its mineral, mining, processing, and related real estate entities to Mackay Precious Metals Inc., a wholly owned subsidiary of Mackay Gold & Silver Corp., in a deal valued at over $45 million. The transaction includes over $30 million in cash and stock payments, a retained 1.5% net smelter return royalty, the assumption of all reclamation obligations, and a contingent future payment of $10 million. At closing, Comstock will receive $20 million in cash and 2 million shares of Mackay Gold & Silver valued at over $3.5 million, with a secured second-tranche cash payment of $7 million due within 18 months. Comstock expects the divestiture to generate over $1.5 million in annualized cost savings and will retain upside through the royalty and a potential $10 million contingent payment tied to a mine construction decision or a change-of-control transaction exceeding $500 million within seven years. The sale marks a milestone in Comstock's transformation into a renewable metals and materials company.