International Tower Hill Mines : Q1 – Three months ended Mar. 31, 2024 - Financials

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited - Prepared by Management)

(Expressed in US Dollars)

Three Months Ended March 31, 2024 and 2023

Corporate Head Office

1570-200 Burrard Street

Vancouver, BC

Canada

V6C 3L6

Tel: [phone]

INTERNATIONAL TOWER HILL MINES LTD.

March 31, 2024 and 2023

INDEX

Page

Unaudited Condensed Consolidated Interim Financial Statements

Condensed Consolidated Interim Balance Sheets	3
Condensed Consolidated Interim Statements of Operations and Comprehensive Loss	4
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity	5
Condensed Consolidated Interim Statements of Cash Flows	6
Notes to the Condensed Consolidated Interim Financial Statements	7-13

PART 1

ITEM 1. FINANCIAL STATEMENTS

INTERNATIONAL TOWER HILL MINES LTD. CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS As at March 31, 2024 and December 31, 2023

(Expressed in US Dollars - Unaudited)

	Note		March 31,		December 31,
		2024		2023
ASSETS
Current
Cash and cash equivalents	1	$	2,588,036	$	1,687,690
Short-term investments			1,000,000		-
Prepaid expenses and other			209,653		304,726
Total current assets			3,797,689		1,992,416
Property and equipment			7,465		7,465
Capitalized acquisition costs	4		55,375,124		55,375,124
Total assets		$	59,180,278	$	57,375,005
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable		$	112,090	$	92,855
Accrued liabilities	5		172,477		142,096
Total liabilities			284,567		234,951
Shareholders' equity
Share capital, no par value; unlimited number of
authorized shares; 199,693,442 and 195,885,531
shares issued and outstanding at March 31, 2024
December 31, 2023, respectively	6		291,179,336		288,866,139
Contributed surplus	6		36,323,675		36,309,865
Accumulated other comprehensive income			1,502,786		1,528,828
Deficit			(270,110,086)		(269,564,778)
Total shareholders' equity			58,895,711		57,140,054
Total liabilities and shareholders' equity		$	59,180,278	$	57,375,005

General Information and Nature of Operations (Note 1)

Commitments (Note 8)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

3

INTERNATIONAL TOWER HILL MINES LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS For the Three Months Ended March 31, 2024 and 2023

(Expressed in US Dollars - Unaudited)

Three Months Ended

	Note		March 31,	March 31,
		2024	2023
Operating expenses
Consulting fees	6		$ 57,563	$	57,635
Insurance			52,876		49,574
Investor relations	6		9,816		4,071
Mineral property	4		130,104		145,895
Office			4,475		2,908
Other			4,164		4,222
Professional fees			42,259		41,305
Regulatory			67,450		61,364
Rent			33,796		33,796
Travel			2,114		1,911
Wages and benefits	6		208,292		115,649
Total operating expenses			(612,909)	(518,330)
Other income (expenses)
Gain(loss) on foreign exchange			38,404		(6,773)
Interest income			29,197		21,566
Total other income			67,601		14,793
Net loss for the period			(545,308)	(503,537)
Other comprehensive income
Exchange difference on translating			(26,042)		615
foreign operations
Total other comprehensive income			(26,042)		615
for the period
Comprehensive loss for the period		$	(571,350)	$ (502,922)
Basic and diluted loss per share		$	(0.00)	$	(0.00)
Weighted average number of shares
outstanding - basic and diluted		198,982,074	195,313,184

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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INTERNATIONAL TOWER HILL MINES LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY For the Three Months Ended March 31, 2024 and 2023

(Expressed in US Dollars - Unaudited)

			Three-Month Period Ended March 31, 2023
					Accumulated
					Other
		Number of	Share	Contributed	Comprehensive
		Shares	Capital	Surplus	Income	Deficit	Total
Balance, December 31, 2022	195,313,184	$288,484,901	$36,275,917	$1,500,196			$(266,166,809)	$60,094,205
Stock-basedcompensation-options	-	-	20,268	-			-	20,268
Exchange difference on
translating foreign operations	-	-	-	615			-	615
Net loss	-	-	-	-			(503,537)	(503,537)
Balance, March 31, 2023	195,313,184	$288,484,901	$36,296,185	$1,500,811			$(266,670,346)	$59,611,551
			Three-Month Period Ended March 31, 2024
					Accumulated
					Other
		Number of	Share	Contributed	Comprehensive
		Shares	Capital	Surplus	Income	Deficit	Total
Balance, December 31, 2023	195,885,531	$288,866,139	$36,309,865	$1,528,828			$(269,564,778)	$57,140,054
Share issuance	3,807,911	2,528,453	-	-			-	2,528,453
Share issuance costs	-	(215,256)	-	-			-	(215,256)
Stock-basedcompensation-options	-	-	13,810	-			-	13,810
Exchange difference on translating
foreign operations	-	-	-	(26,042)			-	(26,042)
Net loss	-	-	-	-			(545,308)	(545,308)
Balance, March 31, 2024	199,693,442	$291,179,336	$36,323,675	$1,502,786			$(270,110,086)	$58,895,711

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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INTERNATIONAL TOWER HILL MINES LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2024 and 2023

(Expressed in US Dollars - Unaudited)

			Three Months Ended
		March 31, 2024	March 31, 2023
Operating Activities
Loss for the period	$	(545,308)	$	(503,537)
Add items not affecting cash:
Stock-basedcompensation-options		13,810		20,268
Changes in non-cash items:
Accounts receivable		(34,598)		(20,971)
Prepaid expenses and other		124,763		2,933
Accounts payable and accrued liabilities		(12,985)		(115,419)
Cash and cash equivalents used in operating activities			(454,318)		(616,726)
Financing Activities
Issuance of shares		2,528,453		-
Share issuance costs		(150,256)		-
Cash and cash equivalents provided by financing activities		2,378,197		-
Investing Activities
Short-term investments	(1,000,000)		-
Cash and cash equivalents used by investing activities	(1,000,000)		-
Effect of foreign exchange on cash		(23,533)		598
Change in cash and cash equivalents			900,346		(616,128)
Cash and cash equivalents, beginning of the period		1,687,690		4,847,429
Cash and cash equivalents, end of the period	$	2,588,036	$	4,231,301
Supplementary Disclosures:
Non-cash financing and investing transactions
Share issuance costs in accrued liabilities	$	65,000		-

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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INTERNATIONAL TOWER HILL MINES LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Three Months Ended March 31, 2024 and 2023

(Expressed in US dollars - Unaudited)

1. GENERAL INFORMATION AND NATURE OF OPERATIONS

International Tower Hill Mines Ltd. ("ITH" or the "Company") is incorporated under the laws of British Columbia, Canada. The Company's head office address is 1570 - 200 Burrard Street, Vancouver, British Columbia, Canada.

International Tower Hill Mines Ltd. consists of ITH and its wholly-owned subsidiaries Tower Hill Mines, Inc. ("TH Alaska") (an Alaska corporation), Tower Hill Mines (US) LLC ("TH US") (a Colorado limited liability company), and Livengood Placers, Inc. ("LPI") (a Nevada corporation). The Company is in the business of acquiring, exploring and evaluating mineral properties, and either joint venturing or developing these properties further or disposing of them when the evaluation is completed. At March 31, 2024, the Company has a 100% interest in its Livengood Gold Project in Alaska, U.S.A (the "Livengood Gold Project").

These unaudited condensed consolidated interim financial statements have been prepared on a going-concern basis, which presumes the realization of assets and discharge of liabilities in the normal course of business for the foreseeable future.

As at March 31, 2024, the Company had cash and cash equivalents of $2,588,036 compared to $1,687,690 at December 31, 2023. The Company has no revenue generating operations from which it can internally generate funds.

The Company will require significant additional financing to continue its operations (including general and administrative expenses) in connection with advancing activities at the Livengood Gold Project and the development of any mine that may be built at the Livengood Gold Project. There is no assurance that the Company will make a decision to build a mine at the Livengood Gold Project and, if so, that it will be able to obtain the additional financing required on acceptable terms, if at all. In addition, any significant delays in the issuance of required permits for the ongoing work at the Livengood Gold Project, or unexpected results in connection with the ongoing work, could result in the Company being required to raise additional funds to advance permitting efforts. The Company's review of its financing options includes considering a future strategic alliance to assist in further development, permitting and future construction costs, although there can be no assurance that any such strategic alliance will, in fact, be pursued or realized.

Despite the Company's success to date in raising significant equity financing to fund its operations, there is significant uncertainty that the Company will be able to secure any additional financing in the current or future equity markets. The amount of funds to be raised and the terms of any proposed equity financing that may be undertaken will be negotiated by management as opportunities to raise funds arise. Specific plans related to the use of proceeds will be devised once financing has been completed and management knows what funds will be available for these purposes. As at May 9, 2024, management believes that the Company has sufficient financial resources to maintain its operations for the next twelve months.

2. BASIS OF PRESENTATION

These unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X under the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 as filed in our Annual Report on Form 10-K. In the opinion of the Company's management, these financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Company's financial position at March 31, 2024 and the results of its operations for the three months then ended. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the

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INTERNATIONAL TOWER HILL MINES LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Three Months Ended March 31, 2024 and 2023

(Expressed in US dollars - Unaudited)

period. These judgments, estimates and assumptions are continuously evaluated and are based on management's experience and knowledge of the relevant facts and circumstances. While management believes the estimates to be reasonable, actual results could differ from those estimates and could impact future results of operations and cash flows.

On May 9, 2024, the Board of Directors of the Company (the "Board") approved these condensed consolidated interim financial statements.

All currency amounts are stated in U.S. dollars unless noted otherwise. References to C$ refer to Canadian currency.

Basis of consolidation

These condensed consolidated interim financial statements include the accounts of ITH and its wholly-owned subsidiaries TH Alaska, TH US, and LPI. All intercompany transactions and balances have been eliminated.

3. FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying values of cash and cash equivalents, short-term investments, accounts receivable and accounts payable and accrued liabilities approximate their fair values due to the short-term nature of these financial instruments.

Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the significance of the inputs used in making the measurement. The three levels of the fair value hierarchy are as follows:

• Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;
• Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and
• Level 3 - Inputs that are not based on observable market data.

There were no financial instruments measured at fair value.

4. MINERAL PROPERTY

The Company did not incur any acquisition costs in respect of the Livengood Gold Project during the three months ended March 31, 2024:

Capitalized acquisition costs		Amount
Balance, December 31, 2023	$	55,375,124
Acquisition costs		-
Balance, March 31, 2024	$	55,375,124

The following table presents costs incurred for mineral property activities for the three months ended March 31,

2024 and 2023:

	March 31, 2024	March 31, 2023
Mineral property costs:
Environmental	$	35,274	$	34,273
Equipment rental		9,278		15,164
Field costs		42,214		50,280
Land maintenance and tenure		30,200		30,200
Legal		12,181		11,568
Transportation and travel		957		4,410
Total expenditures for the period	$	130,104	$	145,895

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INTERNATIONAL TOWER HILL MINES LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Three Months Ended March 31, 2024 and 2023

(Expressed in US dollars - Unaudited)

Livengood Gold Project Property

The Livengood property is located in the Tintina gold belt approximately 70 miles (113 kilometers) northwest of Fairbanks, Alaska. The property consists of land leased from the Alaska Mental Health Trust, a number of smaller private mineral leases, Alaska state mining claims purchased or located by the Company and patented ground held by the Company.

Details of the leases are as follows:

1. A lease of the Alaska Mental Health Trust mineral rights having a term commencing July 1, 2004 and extending 19 years until June 30, 2023, subject to further extensions beyond June 30, 2023 by either (1) commercial production or (2) payment of an annual advance minimum royalty equal to 125% of the amount paid in year 19 and diligent pursuit of development. Both requirements of (2) above have been satisfied through June 30, 2024. The lease requires minimum work expenditures and advance minimum royalties (all of which minimum royalties are recoverable from production royalties) which escalate annually with inflation. A net smelter return ("NSR") production royalty of between 2.5% and 5.0% (depending upon the price of gold) is payable to the lessor with respect to the lands subject to this lease. In addition, an NSR production royalty of l% is payable to the lessor with respect to the unpatented federal mining claims subject to the lease described in b) below and an NSR production royalty of between 0.5% and 1.0% (depending upon the price of gold) is payable to the lessor with respect to the lands acquired by the Company as a result of the purchase of LPI in December 2011. During the three months ended March 31, 2024 and from the inception of this lease, the Company has paid $Nil and $4,813,947, respectively.
2. A lease of federal unpatented lode mining claims having an initial term of ten years commencing on April 21, 2003 and continuing for so long thereafter as advance minimum royalties are paid and mining related activities, including exploration, continue on the property or on adjacent properties controlled by the Company. The lease requires an advance minimum royalty of $50,000 on or before each anniversary date for the duration of the lease (all of which minimum royalties are recoverable from production royalties). An NSR production royalty of between 2% and 3% (depending on the price of gold) is payable to the lessors. The Company may purchase 1% of the royalty for $1,000,000. During the three months ended March 31, 2024 and from the inception of this lease, the Company has paid $Nil and $980,000, respectively.
3. A lease of patented lode mining claims having an initial term of ten years commencing January 18, 2007, and continuing for so long thereafter as advance minimum royalties are paid. The lease requires an advance minimum royalty of $20,000 on or before each anniversary date through January 18, 2017 and $25,000 on or before each subsequent anniversary (all of which minimum royalties are recoverable from production royalties). An NSR production royalty of 3% is payable to the lessors. The Company may purchase all interests of the lessors in the leased property (including the production royalty) for $1,000,000 (less all minimum and production royalties paid to the date of purchase), of which $500,000 is payable in cash over four years following the closing of the purchase and the balance is payable by way of the 3% NSR production royalty. The Company has acquired a 40% interest in the mining claims subject to the lease, providing the Company with a 40% interest in the lease. The Company paid $15,000 of royalties during the three months ended March 31, 2024, for a total of $310,000 from the inception of this lease.
4. A lease of unpatented federal lode mining and federal unpatented placer claims having an initial term of ten years commencing on March 28, 2007, and continuing for so long thereafter as advance minimum royalties are paid and mining related activities, including exploration, continue on the property or on adjacent properties controlled by the Company. The lease requires an advance minimum royalty of $15,000 on or before each anniversary date for the duration of the lease (all of which minimum royalties are recoverable from production royalties). The Company is required to pay the lessor an additional sum of $250,000 upon making a positive production decision, of which $125,000 is payable within 120 days of the decision and $125,000 is payable within a year of the decision (all of which are recoverable from production royalties). An NSR production royalty of 2% is payable to the lessor. The Company may purchase all of the interest of the lessor in the leased property (including the production royalty) for $1,000,000. The Company paid

9

INTERNATIONAL TOWER HILL MINES LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS Three Months Ended March 31, 2024 and 2023

(Expressed in US dollars - Unaudited)

$15,000 of royalties during the three months ended March 31, 2024, for a total of $233,000 from the inception of this lease.

Title to mineral properties

The acquisition of title to mineral properties is a detailed and time-consuming process. The Company has taken steps to verify title to all mineral properties in which it has an interest. Although the Company has taken every reasonable precaution to ensure that legal title to its properties is properly recorded in the name of the Company, there can be no assurance that such title will ultimately be secured.

5. ACCRUED LIABILITIES

The following table presents the Company's accrued liabilities balances at March 31, 2024 and December 31, 2023.

		March 31, 2024	December 31, 2023
Accrued liabilities	$	143,563	$	93,719
Accrued salaries and benefits		28,914		48,377
Total accrued liabilities	$	172,477	$	142,096

Accrued liabilities at March 31, 2024 include accruals for general corporate costs and project costs of $97,235 and $46,328, respectively. Accrued liabilities at December 31, 2023 include accruals for general corporate costs and project costs of $65,791 and $27,928, respectively.

6. SHARE CAPITAL

Authorized

The Company's authorized share capital consists of an unlimited number of common shares without par value. At December 31, 2023 and March 31, 2024, there were 195,885,531 and 199,693,442 shares issued and outstanding, respectively.

Share issuances

During the three months ended March 31, 2024, the Company issued 3,807,911 common shares pursuant to a $2.5 million non-brokered private placement at a price of $0.664 per common share to existing major shareholders of the Company.

Stock options

The Company adopted an incentive stock option plan in 2006, as amended September 19, 2012, and reapproved by the Company's shareholders on May 28, 2015, May 30, 2018, and May 25, 2021 (the "Stock Option Plan"). The essential elements of the Stock Option Plan provide that the aggregate number of common shares of the Company that may be issued pursuant to options granted under the Stock Option Plan and any other share-based compensation arrangements may not exceed 10% of the number of issued shares of the Company at the time of the granting of options. Options granted under the Stock Option Plan will have a maximum term of ten years. The exercise price of options granted under the Stock Option Plan shall be fixed in compliance with the applicable provisions of the Toronto Stock Exchange ("TSX") Company Manual in force at the time of grant and, in any event, shall not be less than the closing price of the Company's common shares on the TSX on the trading day immediately preceding the day on which the option is granted, or such other price as may be agreed to by the Company and accepted by the TSX. Options granted under the Stock Option Plan vest immediately, unless otherwise determined by the Board at the date of grant.

A summary of the options outstanding under the Stock Option Plan as of March 31, 2024 and December 31, 2023 is presented below:

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