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TORONTO, July 29, 2025 /CNW/ - George Weston Limited (TSX: WN) ("GWL" or the "Company") today announced its consolidated unaudited results for the 12 weeks ended June 14, 2025 (2). GWL's 2025 Second Quarter Report has been filed on SEDAR+ and is available at and in the Investor Centre section of the Company's website at "George Weston had another strong quarter of operational and financial performance," said Galen G. Weston, Chairman and Chief Executive Officer, George Weston Limited. "Our operating businesses continue to position George Weston for success as Loblaw delivers on its strategy while providing exceptional value for Canadians, and Choice Properties strengthened its portfolio with disciplined property acquisitions and divestitures." Loblaw Companies Limited ("Loblaw") delivered strong performance this quarter by continuing to provide Canadians with quality, value, service, and convenience across its nationwide network of stores and digital platforms. 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GWL also separately announced today a 3-for-1 common share stock split to ensure its common shares remain accessible to retail investors and employees who participate in the Company's employee share ownership program. The stock split will not dilute shareholders' equity. The stock split will be implemented by way of a stock dividend. Further details are provided in the Company's separate news release of July 29, 2025. 2025 SECOND QUARTER HIGHLIGHTS Revenue was $14,823 million, an increase of $732 million, or 5.2%. Adjusted EBITDA (1) was $1,923 million, an increase of $117 million, or 6.5%. Net earnings available to common shareholders of the Company were $258 million ($1.96 per common share), compared to $400 million ($2.97 per common share) in the same period in 2024. 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The consolidation of these entities into the Company's financial statements reflects the impact of eliminations, intersegment adjustments and other consolidation adjustments, which can positively or negatively impact the Company's consolidated results. Additionally, cash and short-term investments and other investments held by the Company, and all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs are included in GWL Corporate. To help our investors and stakeholders understand the Company's financial statements and the effect of consolidation, the Company reports its results in a manner that differentiates between the Loblaw segment, the Choice Properties segment, the effect of consolidation of Loblaw and Choice Properties, and lastly, GWL Corporate. The Company's results reflect the year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the significant changes in Choice Properties' unit price, recorded in net interest expense and other financing charges. The Company's results are impacted by market price fluctuations of Choice Properties' Trust Units on the basis that the Trust Units held by Unitholders, other than the Company, are redeemable for cash at the option of the holder and are presented as a liability on the Company's consolidated balance sheet. The Company's financial results are negatively impacted when the Trust Unit price increases and positively impacted when the Trust Unit price declines. ($ millions except where otherwise indicated) For the periods ended as indicated 12 Weeks Ended Jun. 14, 2025 Jun. 15, 2024 $ Change % Change Revenue $ 14,823 $ 14,091 $ 732 5.2 % Operating income $ 1,440 $ 795 $ 645 81.1 % Adjusted EBITDA (1) from: Loblaw $ 1,838 $ 1,711 $ 127 7.4 % Choice Properties 252 240 12 5.0 % Effect of consolidation (157) (140) (17) (12.1) % Publicly traded operating companies (i) $ 1,933 $ 1,811 $ 122 6.7 % GWL Corporate (10) (5) (5) (100.0) % Adjusted EBITDA (1) $ 1,923 $ 1,806 $ 117 6.5 % Adjusted EBITDA margin (1) 13.0 % 12.8 % Net earnings attributable to shareholders of the Company $ 268 $ 410 $ (142) (34.6) % Loblaw (ii) $ 377 $ 241 $ 136 56.4 % Choice Properties (154) 514 (668) (130.0) % Effect of consolidation 61 (154) 215 139.6 % Publicly traded operating companies (i) $ 284 $ 601 $ (317) (52.7) % GWL Corporate (26) (201) 175 87.1 % Net earnings available to common shareholders of the Company $ 258 $ 400 $ (142) (35.5) % Diluted net earnings per common share ($) $ 1.96 $ 2.97 $ (1.01) (34.0) % Loblaw (ii) $ 381 $ 350 $ 31 8.9 % Choice Properties 112 105 7 6.7 % Effect of consolidation (50) (29) (21) (72.4) % Publicly traded operating companies (i) $ 443 $ 426 $ 17 4.0 % GWL Corporate (42) (32) (10) (31.3) % Adjusted net earnings available to common shareholders of the Company (1) $ 401 $ 394 $ 7 1.8 % Adjusted diluted net earnings per common share (1) ($) $ 3.06 $ 2.93 $ 0.13 4.4 % (i) Publicly traded operating companies is the contribution to the Company's financial performance from its controlling interest in Loblaw and Choice Properties after the effect of consolidation, each of which are publicly traded entities. Effect of consolidation includes eliminations, intersegment adjustments and other consolidation adjustments. See "Results by Operating Segment" section of this News Release for further information. (ii) Contribution from Loblaw, net of non-controlling interests. Net earnings available to common shareholders of the Company in the second quarter of 2025 were $258 million ($1.96 per common share), a decrease of $142 million ($1.01 per common share) compared to the same period in 2024. The decrease was due to the unfavourable year-over-year net impact of adjusting items totaling $149 million ($1.14 per common share), partially offset by an improvement of $7 million ($0.13 per common share) in the consolidated underlying operating performance of the Company. The unfavourable year-over-year net impact of adjusting items totaling $149 million ($1.14 per common share) was primarily due to: the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability of $462 million ($3.50 per common share) as a result of the increase in Choice Properties' unit price in the second quarter of 2025; and the unfavourable year-over-year impact of the prior year reversal of a transaction related provision of $39 million ($0.29 per common share) that was determined to be no longer required at Choice Properties; partially offset by, the favourable year-over-year impact of prior year charges related to the settlement of class action lawsuits of $253 million ($1.89 per common share); the favourable year-over-year impact of lower amortization of intangible assets at Loblaw of $41 million ($0.31 per common share) primarily related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart Corporation ("Shoppers Drug Mart") which are now fully amortized; the favourable year-over-year impact of the fair value adjustment on Choice Properties' investment in real estate securities of Allied Properties Real Estate Investment Trust ("Allied") of $33 million ($0.25 per common share) as a result of the change in Allied's unit price; and the favourable year-over-year impact of the fair value adjustment on investment properties of $29 million ($0.23 per common share) driven by Choice Properties, net of the effect of consolidation. Adjusted net earnings available to common shareholders of the Company (1) in the second quarter of 2025 were $401 million, an increase of $7 million, or 1.8%, compared to the same period in 2024. The increase was driven by the favourable year-over-year impact of $17 million from the contribution of the publicly traded operating companies, partially offset by the unfavourable year-over-year impact of $10 million at GWL Corporate due to the year-over-year impact of the fair value adjustment on other investments, an increase in adjusted net interest expense and other financing charges (1) and an increase in income tax expense related to GWL's participation in Loblaw's Normal Course Issuer Bid ("NCIB"). Adjusted diluted net earnings per common share (1) were $3.06 in the second quarter of 2025, an increase of $0.13 per common share, or 4.4%, compared to the same period in 2024. The increase was due to the performance in adjusted net earnings available to common shareholders (1) as described above and the favourable impact of shares purchased for cancellation over the last 12 months ($0.09 per common share) pursuant to the Company's NCIB. GWL CORPORATE FINANCING ACTIVITIES The Company completed the following select GWL Corporate financing activities: NCIB – Purchased and Cancelled Shares In the second quarter of 2025, the Company purchased and cancelled 1.1 million common shares (2024 – 1.8 million common shares) for aggregate consideration of $295 million (2024 – $339 million) under its NCIB. As at June 14, 2025, the Company had 128.3 million common shares issued and outstanding, net of shares held in trusts (June 15, 2024 – 132.1 million common shares). The Company has an automatic share purchase plan ("ASPP") with a broker in order to facilitate the repurchase of the Company's common shares under its NCIB. During the effective period of the ASPP, the Company's broker may purchase common shares at times when the Company would not be active in the market. Refer to note 11, "Share Capital", of the Company's second quarter 2025 unaudited interim period condensed consolidated financial statements for more information. Participation in Loblaw's NCIB The Company participates in Loblaw's NCIB in order to maintain its proportionate percentage ownership interest. In the second quarter of 2025, Loblaw repurchased 0.9 million common shares (2024 – 1.3 million common shares) from the Company for aggregate consideration of $200 million (2024 – $190 million). 12 Weeks Ended Jun. 14, 2025 Jun. 15, 2024 ($ millions) For the periods ended as indicated Loblaw Choice Properties Effect of consol- idation GWL Corporate Total Loblaw Choice Properties Effect of consol- idation GWL Corporate Total Revenue $ 14,672 $ 351 $ (200) $ — $14,823 $ 13,947 $ 336 $ (192) $ — $ 14,091 Operating income $ 1,237 $ 350 $ (136) $ (11) $ 1,440 $ 866 $ 273 $ (82) $ (262) $ 795 Adjusted operating income (1) 1,247 251 (73) (11) 1,414 1,147 239 (57) (6) 1,323 Adjusted EBITDA (1) $ 1,838 $ 252 $ (157) $ (10) $ 1,923 $ 1,711 $ 240 $ (140) $ (5) $ 1,806 Net interest expense (income) and other financing charges $ 212 $ 504 $ (231) $ 5 $ 490 $ 190 $ (241) $ 48 $ — $ (3) Adjusted net interest expense (income) and other financing charges (1) 212 139 (54) 5 302 190 134 (53) — 271 Earnings (loss) before income taxes $ 1,025 $ (154) $ 95 $ (16) $ 950 $ 676 $ 514 $ (130) $ (262) $ 798 Income taxes $ 270 $ — $ 34 $ (2) $ 302 $ 180 $ — $ 24 $ (73) $ 131 Adjusted income taxes (1) 273 — 31 14 318 254 — 25 14 293 Net earnings attributable to non-controlling interests $ 378 $ — $ — $ 2 $ 380 $ 255 $ — $ — $ 2 $ 257 Prescribed dividends on preferred shares in share capital — — — 10 10 — — — 10 10 Net earnings (loss) available to common shareholders of the Company $ 377 $ (154) $ 61 $ (26) $ 258 $ 241 $ 514 $ (154) $ (201) $ 400 Adjusted net earnings available to common shareholders of the Company (1) 381 112 (50) (42) 401 350 105 (29) (32) 394 Effect of consolidation includes the following items: LOBLAW OPERATING RESULTS Loblaw has two reportable operating segments, retail and financial services, with all material operations carried out in Canada. Loblaw's retail segment consists primarily of food retail and drug retail. Loblaw provides Canadians with grocery, pharmacy and healthcare services, other health and beauty products, apparel, general merchandise and financial services. Revenue Loblaw revenue in the second quarter of 2025 was $14,672 million, an increase of $725 million, or 5.2%, compared to the same period in 2024, driven by an increase in retail sales and in financial services revenue. The sale of Wellwise by Shoppers™ (" Wellwise") was completed in the first quarter of 2025. Revenue related to Wellwise in the second quarter of 2025 was nil (2024 – $21 million). Excluding the impact of revenue related to Wellwise, revenue increased by 5.4%. Retail sales were $14,389 million, an increase of $731 million, or 5.4%, compared to the same period in 2024. The increase was primarily driven by the following factors: food retail sales were $10,213 million (2024 – $9,653 million) and food retail same-store sales growth was 3.5% (2024 – 0.2%); Loblaw's internal food inflation was lower than the Consumer Price Index for Food Purchased from Stores of 3.3% (2024 – 1.7%); and food retail traffic increased and basket size increased. drug retail sales were $4,176 million (2024 – $4,005 million) and drug retail same-store sales growth was 4.1% (2024 – 1.5%); pharmacy and healthcare services same-store sales growth was 6.2% (2024 – 5.4%), led by specialty prescriptions. On a same-store basis, the number of prescriptions increased by 3.1% (2024 – 2.1%) and the average prescription value increased by 3.9% (2024 – 1.9%); and front store same-store sales growth was 1.7% (2024 – decline of 2.4%). Front store same-store sales growth was primarily driven by higher sales of beauty and over-the-counter ("OTC") products, partially offset by the decision to exit certain low margin electronics categories. In the second quarter of 2025, 10 food and drug stores were opened and 1 food and drug store was closed. Retail square footage was 72.5 million square feet, a net increase of 1.2 million square feet, or 1.7% compared to the same period in 2024. Financial services revenue was $377 million, an increase of $10 million, or 2.7%, compared to the same period in 2024, primarily driven by higher sales attributable to The Mobile Shop™ and higher insurance commission income, partially offset by lower interest income. Operating Income Loblaw operating income in the second quarter of 2025 was $1,237 million, an increase of $371 million, or 42.8%, compared to the same period in 2024. Adjusted EBITDA (1) Loblaw adjusted EBITDA (1) in the second quarter of 2025 was $1,838 million, an increase of $127 million, or 7.4%, compared to the same period in 2024, driven by an increase in retail of $110 million and an increase in financial services of $17 million. Retail adjusted EBITDA (1) increased by $110 million compared to the same period in 2024, driven by an increase in retail gross profit of $238 million, partially offset by an increase in retail selling, general and administrative expenses ("SG&A") of $128 million. Retail gross profit percentage of 32.0% was stable compared to the same period in 2024, primarily driven by improvements in shrink, offset by changes in sales mix in drug retail pharmacy categories. Retail SG&A as a percentage of sales was 19.8%, a favourable decrease of 10 basis points compared to the same period in 2024, primarily due to operating leverage from higher sales and the year-over-year impact of certain real estate activities, partially offset by incremental costs related to opening new stores and the automated distribution facility. Financial services adjusted EBITDA (1) increased by $17 million compared to the same period in 2024, primarily driven by higher revenue as described above, lower operating costs, and lower credit card receivable charge-offs. The increase was partially offset by higher loyalty program costs. Depreciation and Amortization Loblaw depreciation and amortization in the second quarter of 2025 was $600 million, a decrease of $79 million compared to the same period in 2024, primarily driven by the impact of lower amortization related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart which are now fully amortized, partially offset by an increase in depreciation of fixed assets related to conversions of retail locations and opening new stores, and an increase in depreciation of leased assets. Included in depreciation and amortization was the amortization of intangible assets related to the acquisitions of Shoppers Drug Mart and Lifemark Health Group ("Lifemark") of $9 million (2024 – $115 million). Choice Properties owns, manages and develops a high-quality portfolio of commercial and residential properties across Canada. Revenue Choice Properties revenue in the second quarter of 2025 was $351 million, an increase of $15 million, or 4.5%, compared to the same period in 2024 and included revenue of $201 million (2024 – $193 million) generated from tenants within Loblaw. The increase in revenue in the second quarter of 2025 was primarily driven by: higher rental rates primarily in the retail and industrial portfolios; and contributions from acquisitions, net of dispositions, and completed developments; partially offset by, lower lease surrender revenue. Net Interest Expense (Income) and Other Financing Charges Choice Properties net interest expense and other financing charges in the second quarter of 2025 were $504 million, compared to net interest income and other financing charges of $241 million in the same period in 2024. The change of $745 million was primarily driven by the unfavourable year-over-year change in the fair value adjustment on the Class B LP units ("Exchangeable Units") of $737 million, as a result of the increase in the unit price in the quarter. Net (Loss) Income Choice Properties recorded a net loss of $154 million in the second quarter of 2025, compared to net income of $514 million in the same period in 2024. The unfavourable change of $668 million was primarily driven by: higher net interest expense and other financing charges as described above; and the unfavourable year-over-year impact of the prior year reversal of a transaction related provision of $39 million that was determined to be no longer required; partially offset by, the favourable year-over-year change in the fair value adjustment on investment properties, including those held within equity accounted joint ventures, of $67 million; the favourable year-over-year change in the fair value adjustment of investment in real estate securities of $37 million driven by the change in Allied's unit price; and an increase in rental revenue as described above. Funds from Operations (1) Funds from Operations (1) in the second quarter of 2025 were $192 million, an increase of $7 million compared to the same period in 2024. The increase was primarily due to an increase in rental income and lower general and administrative expenses. The increase was partially offset by higher interest expense and lower interest income. OUTLOOK (2) The Company's 2025 outlook remains unchanged and it continues to expect adjusted net earnings (1) to increase due to the results from its operating segments, and to use excess cash to repurchase shares. Loblaw Loblaw will continue to execute on retail excellence while advancing its growth initiatives with the goal of delivering consistent operational and financial results in 2025. Loblaw's businesses remain well positioned to meet the everyday needs of Canadians. In 2025, Loblaw's results will include the impact of a 53rd week, which is expected to benefit adjusted net earnings per common share (1) growth by approximately 2%. On a full-year comparative basis, excluding the impact of the 53rd week, Loblaw continues to expect: its retail business to grow earnings faster than sales; adjusted net earnings per common share (1) growth in the high single-digits; to continue investing in its store network and distribution centres by investing a net amount of $1.9 billion in capital expenditures, which reflects gross capital investments of approximately $2.2 billion, net of approximately $300 million of proceeds from property disposals; and to return capital to shareholders by allocating a significant portion of free cash flow to share repurchases. Choice Properties Choice Properties is focused on capital preservation, delivering stable and growing cash flows and net asset value appreciation. Its high-quality portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to its overall portfolio. Choice Properties will continue to advance its development program, with a focus on commercial developments, which provides the best opportunity to add high-quality real estate to its portfolio at a reasonable cost and drive net asset value appreciation over time. Choice Properties is confident that its business model, stable tenant base, strong balance sheet and disciplined approach to financial management will continue to benefit its operations. In 2025, Choice Properties is targeting: stable occupancy across the portfolio, resulting in approximately 2% - 3% year-over-year growth in Same-Asset NOI, cash basis (3); annual FFO (1) per unit diluted (3) in a range of $1.05 to $1.06, reflecting approximately 2% - 3% year-over-year growth; and strong leverage metrics, targeting Adjusted Debt to EBITDAFV (3) below 7.5x. FORWARD-LOOKING STATEMENTS This News Release contains forward-looking statements about the Company's objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this News Release include, but are not limited to, statements with respect to the Company's anticipated future results, events and plans, strategic initiatives and restructuring, regulatory changes including further healthcare reform, future liquidity, planned capital investments, and the status and impact of information technology systems implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "Outlook" section of this News Release. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may", "should" and similar expressions, as they relate to the Company and its management. Forward-looking statements reflect the Company's estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in the "Enterprise Risks and Risk Management" section of the Management's Discussion and Analysis in the Company's 2024 Annual Report and the Company's Annual Information Form for the year ended December 31, 2024. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this News Release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. DECLARATION OF QUARTERLY DIVIDENDS Subsequent to the end of the second quarter of 2025, the Company's Board of Directors declared a quarterly dividend on GWL Common Shares, Preferred Shares, Series I, Preferred Shares, Series III, Preferred Shares, Series IV and Preferred Shares, Series V payable as follows: Common Shares $0.8938 per share (on a pre-stock split basis) payable October 1, 2025, to shareholders of record September 15, 2025; Preferred Shares, Series I $0.3625 per share payable September 15, 2025, to shareholders of record August 31, 2025; Preferred Shares, Series III $0.3250 per share payable October 1, 2025, to shareholders of record September 15, 2025; Preferred Shares, Series IV $0.3250 per share payable October 1, 2025, to shareholders of record September 15, 2025; Preferred Shares, Series V $0.296875 per share payable October 1, 2025, to shareholders of record September 15, 2025. 2025 SECOND QUARTER REPORT The Company's 2024 Annual Report and 2025 Second Quarter Report are available in the Investor Centre section of the Company's website at and have been filed on SEDAR+ and are available at INVESTOR RELATIONS Shareholders, security analysts and investment professionals should direct their requests to Roy MacDonald, Group Vice-President, Investor Relations, at the Company's Executive Office or by e-mail at [email protected]. Additional financial information has been filed electronically with various securities regulators in Canada through SEDAR+. This News Release includes selected information on Loblaw, a public company with shares trading on the Toronto Stock Exchange ("TSX"), and selected information on Choice Properties, a public real estate investment trust with units trading on the TSX. For information regarding Loblaw or Choice Properties, readers should refer to the respective materials filed on SEDAR+ from time to time. These filings are also maintained on the respective companies' corporate websites at and Ce rapport est disponible en français. APPENDIX 1: NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses non-GAAP and other financial measures and ratios as it believes these measures and ratios provide useful information to both management and investors with regard to accurately assessing the Company's financial performance and financial condition. Further, certain non-GAAP measures and other financial measures of Loblaw and Choice Properties are included in this document. For more information on these measures, refer to the materials filed by Loblaw and Choice Properties, which are available on or at or respectively. Management uses these and other non-GAAP and other financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing underlying consolidated and segment operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. The Company adjusts for these items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring. These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies, and should not be construed as an alternative to other financial measures determined in accordance with GAAP. ADJUSTED EBITDA The Company believes adjusted EBITDA is useful in assessing and making decisions regarding the underlying operating performance of the Company's ongoing operations and in assessing the Company's ability to generate cash flows to fund its cash requirements, including its capital investment program. The following table reconciles adjusted EBITDA to operating income, which is reconciled to GAAP net earnings attributable to shareholders of the Company reported for the periods ended as indicated. (i) The following items impacted adjusted EBITDA in 2025 and 2024: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark The acquisition of Shoppers Drug Mart in 2014 included approximately $6 billion of definite life intangible assets, which are being amortized over their estimated useful lives. In 2024, the annual amortization associated with the acquired intangibles was $479 million. The annual amortization will decrease to approximately $130 million in 2025, of which $110 million and $6 million was recorded in the first and second quarters of 2025, respectively. Annual amortization will be approximately $30 million in 2026 and thereafter. The acquisition of Lifemark in 2022 included approximately $299 million of definite life intangible assets, which are being amortized over their estimated useful lives. Fair value adjustment of derivatives Loblaw is exposed to commodity price and U.S. dollar exchange rate fluctuations. In accordance with Loblaw's commodity risk management policy, Loblaw enters into exchange traded futures contracts and forward contracts to minimize cost volatility relating to fuel prices and the U.S. dollar exchange rate. These derivatives are not acquired for trading or speculative purposes. Pursuant to Loblaw's derivative instruments accounting policy, changes in the fair value of these instruments, which include realized and unrealized gains and losses, are recorded in operating income. Despite the impact of accounting for these commodity and foreign currency derivatives on Loblaw's reported results, the derivatives have the economic impact of largely mitigating the associated risks arising from price and exchange rate fluctuations in the underlying commodities and U.S. dollar commitments. Fair value adjustment on investment properties The Company measures investment properties at fair value. Under the fair value model, investment properties are initially measured at cost and subsequently measured at fair value. Fair value is determined based on available market evidence. If market evidence is not readily available in less active markets, the Company uses alternative valuation methods such as discounted cash flow projections or recent transaction prices. Gains and losses on fair value are recognized in operating income in the period in which they are incurred. Gains and losses from disposal of investment properties are determined by comparing the fair value of disposal proceeds and the carrying amount and are recognized in operating income. Fair value adjustment of investment in real estate securities Choice Properties received Allied Class B Units as part of the consideration for the Choice Properties disposition of six office assets to Allied in 2022. Choice Properties recognized these units as investments in real estate securities. The investment in real estate securities is exposed to market price fluctuations of Allied trust units. An increase (decrease) in the market price of Allied trust units results in income (a charge) to operating income. Gain on sale of non-operating property In the second quarter of 2025, Loblaw recorded a gain related to the sale of a non-operating property to a third party of $1 million (2024 – nil). Charges related to settlement of class action lawsuits On July 24, 2024, the Company and Loblaw entered into binding Minutes of Settlement and on January 31, 2025, the Company and Loblaw entered into a Settlement Agreement to resolve nationwide class action lawsuits against them relating to their role in an industry-wide price-fixing arrangement involving certain packaged bread products. In the second quarter of 2024, the Company and Loblaw recorded charges of $256 million and $164 million, respectively, in SG&A, relating to the settlement and related costs. The Settlement Agreement was approved by the Ontario Superior Court of Justice in May 2025 and if approved by the court in Quebec, it will resolve all of the consumers' claims against the Company and Loblaw relating to this matter. Transaction costs and other related recoveries In the second quarter of 2024, Choice Properties recorded a reversal of a transaction related provision for $39 million that was determined to be no longer required. ADJUSTED NET INTEREST EXPENSE AND OTHER FINANCING CHARGES The Company believes adjusted net interest expense and other financing charges is useful in assessing the ongoing net financing costs of the Company. The following table reconciles adjusted net interest expense and other financing charges to GAAP net interest expense and other financing charges reported for the periods ended as indicated. The following item impacted adjusted net interest expense and other financing charges in 2025 and 2024: Fair value adjustment of the Trust Unit liability The Company is exposed to market price fluctuations as a result of the Choice Properties Trust Units held by Unitholders other than the Company. These Trust Units are presented as a liability on the Company's consolidated balance sheets as they are redeemable for cash at the option of the holder, subject to certain restrictions. This liability is recorded at fair value at each reporting date based on the market price of Trust Units at the end of each period. An increase (decrease) in the market price of Trust Units results in a charge (income) to net interest expense and other financing charges. ADJUSTED INCOME TAXES AND ADJUSTED EFFECTIVE TAX RATE The Company believes the adjusted effective tax rate applicable to adjusted earnings before taxes is useful in assessing the underlying operating performance of its business. The following table reconciles the effective tax rate applicable to adjusted earnings before taxes to the GAAP effective tax rate applicable to earnings before taxes as reported for the periods ended as indicated. 12 Weeks Ended ($ millions except where otherwise indicated) Jun. 14, 2025 Jun. 15, 2024 Adjusted operating income (i) $ 1,414 $ 1,323 Adjusted net interest expense and other financing charges (i) 302 271 Adjusted earnings before taxes $ 1,112 $ 1,052 Income taxes $ 302 $ 131 Add impact of the following: Tax impact of items excluded from adjusted earnings before taxes (ii) — 142 Outside basis difference in certain Loblaw shares 16 20 Adjusted income taxes $ 318 $ 293 Effective tax rate applicable to earnings before taxes 31.8 % 16.4 % Adjusted effective tax rate applicable to adjusted earnings before taxes 28.6 % 27.9 % (i) See reconciliations of adjusted operating income and adjusted net interest expense and other financing charges above. (ii) See the adjusted EBITDA table and the adjusted net interest expense and other financing charges table above for a complete list of items excluded from adjusted earnings before taxes. In addition to certain items described in the "Adjusted EBITDA" and "Adjusted Net Interest Expense and Other Financing Charges" sections above, the following item impacted adjusted income taxes and the adjusted effective tax rate in 2025 and 2024: Outside basis difference in certain Loblaw shares The Company recorded a deferred tax recovery of $16 million in the second quarter of 2025 (2024 – $20 million) on temporary differences in respect of GWL's investment in certain Loblaw shares that are expected to reverse in the foreseeable future as a result of GWL's participation in Loblaw's NCIB. ADJUSTED NET EARNINGS AVAILABLE TO COMMON SHAREHOLDERS AND ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE The Company believes that adjusted net earnings available to common shareholders and adjusted diluted net earnings per common share are useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business. The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted net earnings attributable to shareholders of the Company to net earnings attributable to shareholders of the Company and then to net earnings available to common shareholders of the Company reported for the periods ended as indicated. ($ millions except where otherwise indicated) 12 Weeks Ended Jun. 14, 2025 Jun. 15, 2024 Net earnings attributable to shareholders of the Company $ 268 $ 410 Less: Prescribed dividends on preferred shares in share capital (10) (10) Net earnings available to common shareholders of the Company $ 258 $ 400 Less: Reduction in net earnings due to dilution at Loblaw (4) (3) Net earnings available to common shareholders for diluted earnings per share $ 254 $ 397 Net earnings attributable to shareholders of the Company $ 268 $ 410 Adjusting items (refer to the following table) 143 (6) Adjusted net earnings attributable to shareholders of the Company $ 411 $ 404 Less: Prescribed dividends on preferred shares in share capital (10) (10) Adjusted net earnings available to common shareholders of the Company $ 401 $ 394 Less: Reduction in net earnings due to dilution at Loblaw (4) (3) Adjusted net earnings available to common shareholders for diluted earnings per share $ 397 $ 391 Diluted weighted average common shares outstanding (in millions) 129.6 133.6 The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted diluted net earnings per common share to GAAP net earnings available to common shareholders of the Company and diluted net earnings per common share as reported for the periods ended as indicated. (i) Contribution from Loblaw, net of non-controlling interests. (ii) Net of income taxes and non-controlling interests, as applicable. GWL CORPORATE FREE CASH FLOW GWL Corporate free cash flow is generated from dividends received from Loblaw, distributions received from Choice Properties, and proceeds from participation in Loblaw's NCIB, less corporate expenses, interest and income taxes paid. (i) GWL Corporate, financing, and other costs includes all other company level activities that are not allocated to the reportable operating segments such as net interest expense, corporate activities, administrative costs and changes in non-cash working capital. Also included are preferred share dividends. CHOICE PROPERTIES' FUNDS FROM OPERATIONS Choice Properties considers Funds from Operations to be a useful measure of operating performance as it adjusts for items included in net income that do not arise from operating activities or do not necessarily provide an accurate depiction of its performance. Funds from Operations is calculated in accordance with the Real Property Association of Canada's Funds from Operations & Adjusted Funds from Operations for International Financial Reporting Standards issued in January 2022. The following table reconciles Choice Properties' Funds from Operations to net income for the periods ended as indicated. SOURCE George Weston Limited
Cision Canada
12 minutes ago
- Cision Canada
VIZSLA SILVER INCREASES EXPLORATION, COMPLETES GEOPHYSICAL SURVEY HIGHLIGHTING NEW TARGETS PROXIMAL TO PANUCO PROJECT 1 & COMMENCES INITIAL FIELD WORK AT NEWLY ACQUIRED SANTA FÉ PROPERTY TO THE SOUTH OF PANUCO IN THE HUNT FOR PROJECT 2
VANCOUVER, BC, July 29, 2025 /CNW/ - Vizsla Silver Corp. (TSX: VZLA) (NYSE: VZLA) (Frankfurt: 0G3) (" Vizsla Silver" or the " Company") is pleased to announce preliminary results from its recently completed HLEM survey covering the Copala and Napoleon Vein corridors at its flagship Panuco silver-gold district (the "Property" or "Panuco") and outlines initial exploration plans to test the newly acquired producing Santa Fé property located south of Panuco in Western, Mexico. "As our development team continues to de-risk and advance Project #1 in the west, our exploration team led by Dr. Jesus Velador, has been busy compiling and analysing new data to locate additional mineralized centers across not only the original contiguous Panuco District but within Vizsla Silver's newly acquired properties situated along the emerging Western Mexico Silver Belt," commented Michael Konnert – CEO."Since our initial discovery at Napoleon we have completed over 390,000 metres of diamond drilling, made several new discoveries and outlined a robust, high-grade resource base which serves as the foundation for Panuco Project 1, located in the southwest corner of the district. We are now determined to identify the next epicenter of high-grade mineralization with the potential to host similar resources to that outlined in Project 1. To support this objective, we have completed a new geophysical survey focused on the Copala and Napoleon vein corridors, highlighting several new near-surface anomalies. This combined with results from ongoing mapping and sampling, observations of metal ratios, alteration, and other exploration methods has improved our geologic understanding of the structural controls to mineralization and has outlined several new high priority targets to both enhance Project #1 and hunt for Project #2." Key Exploration Objectives for 2025 Complete +25,000 metres of exploration drilling (~8,000 metres completed). Complete Airborne Electromagnetic (TEM) survey on +1,000 l-km at Panuco. Advance mapping of the district to 70% coverage. Generate near-mine drilling targets at Santa Fé through detailed mapping and data analysis. Webcast Vizsla Silver will be hosting a webcast at 10:00 am PT (2:00 pm ET) on Wednesday July 30, 2025, to present and discuss the geology of the Panuco district and outline its exploration plans and objectives for the remainder of the year. To register, please click here. Enhancing Project #1: Vizsla Silver exploration approach and programs completed to date have resulted in a significantly improved geologic understanding of the district and have successfully defined multiple layers of exploration upside radiating out from the current center of mass in the west. This center of mass, referred to as Project 1, hosts ~98% of the current mineral resources in the District and is the focus of the pending Feasibility Study (see Press Release related to mineral resources update from January 6, 2025, and PEA from July 24, 2024). Project #1 upside potential supported by a recently completed ground HLEM survey consists of 1) expansions to open resources on known structures within the Copala and Napoleon corridors and 2) proximal targets located in Panuco West situated within potential hauling distance to the proposed PEA processing location. Resource Extension Targets: The Copala structure remains open down-dip in the south and along strike to the north. Additionally, the recent discovery of the historic Copala adit and near surface high-grade mineralization intercepted below it, there exists potential for additional high-grade shoots extending to surface along strike to the south. Napoleon HW4 is a shallow dipping vein that splays off to the east from the main Napoleon Vein. Drilling to date, targeting Napoleon Main has reported multiple high-grade intercepts along HW4 that support potential future resource expansion down dip to the east. La Luisa remains open at depth and along strike to the southeast and to the north in the 400-metre gap zone. Updated geologic modelling and observed metal ratios suggest two potential new feeder zones at depth that warrant future drill-testing. Cruz Negra is a relatively narrow (1.20 mTW on average), gold-rich vein trending northwest that splays off from the Josephine Vein (situated to the west and parallel to Napoleon). Open-ended intercepts completed in 2022 suggest that mineralization continues to the northwest in the direction of the Alacran Vein in the northwest. This 500-metre gap between drilling completed at Cruz Negra in the southeast and Alacran in the northwest hosts potential for near surface resource expansion. Proximal Targets: Colorada-Napoleon intersection is a conceptual target located at the projected intersection of the Copala fault and the northern extent of Napoleon, where geologic conditions suggests good structural preparation within in favorable host rock. This is further supported by preliminary AI and Machine Learning analysis completed by VRIFY. Additionally, the recently completed, frequency-domain ground HLEM geophysical survey has revealed multiple conductor anomalies. Some of these anomalies that deviate from trends coincide with mapped vein traces or vein projections. Vizsla Silver's team is analyzing the geophysical data to plan additional exploratory drilling in this area. 4 de Mayo is a set of narrow subvertical veins trending northwest located 1.0 km to the west of La Luisa, where exploratory drilling has reported high-grade silver intercepts close to surface. The 4 de Mayo veins show strong pinch and swell characteristics but remain open to the south and at depth. Ground HLEM geophysics has identified a series of compelling anomalies along and south of the 4 de Mayo vein system, supporting the case for follow-up exploration drilling. San Jack and San Peter are two parallel structures that show subtle quartz veining and strong hydrothermal alteration on surface. These structures are located 2.5 km west of Napoleon and 1.5 km west of La Luisa, in the southwest dipping, western block of the district. Extrapolation of our working exploration model applied at Napoleon and La Luisa suggests that the top of vein mineralization could occur below the rhyolite tuff – andesite contact, approximately 200 metres below surface. HLEM geophysics defined conductor anomalies over San Jack and San Peter, making these two vein targets appealing. The Esmeralda-Tecolote target comprises two newly mapped epithermal veins. Sampling results and observed vein textures indicate a high-level position within the epithermal system, supporting future drill testing. The Hunt for Project #2: Beyond expanding resources and testing targets which complement Project #1 in the west, Vizsla Silver is committed to finding additional mineralized centers in the central and east areas of the district. Supporting evidence for multiple mineralized centers includes intrusions of varying age and composition, the widespread presence of dikes and domes, extensive hydrothermal alteration across the district, >150 known vein prospects, and geochemical data indicating distinct ages of mineralization at Copala and Panuco compared to the alteration age at the La Guayanera dome above the Animas Vein. New age dating analysis determined 40 Ar/ 39 Ar age dates resolved mineralization at Copala and Napoleon at 25.81 ± 0.05 Ma and 25.72 ± 0.06 Ma (identical age within error for the two veins) and sericite alteration at the Guayanera dome along the Animas vein trend at 32.14 ± 0.17 Ma. The age gap of ~6 Ma between epithermal mineralization in the west and hydrothermal alteration (activity) farther east, supports the hypothesis that multiple hydrothermal centers operated in the district over time. Since consolidation of the Panuco district, Vizsla Silver has continuously conducted detailed geologic mapping and rock chip sampling to identify additional mineralized centers. To date Vizsla Silver has mapped 68% of the district at a 1:1,000 scale and has collected over 5,000 rock chip samples. The mapping and sampling efforts, supported by a LiDAR survey conducted in 2023, have allowed the Company to define over 158 targets in the district, of which 43 have been drill tested. With the recent integration of Terraspec data, WorldView-III, and ASTER satellite imagery, the Company is enhancing its ability to prioritize and rank these exploration targets. An example of this is the most recent discovery of high-grade mineralization along the Animas vein system at the La Pipa target where hole AM-25-90 intercepted 653 g/t silver, 4.26 g/t gold, 0.02 % lead and 0.04 % zinc (897 g/t AgEq) over 5.80 metres true width (mTW) and 457 g/t silver, 2.00 g/t gold, 0.08 % lead and 0.18 % zinc (568 g/t AgEq) over 2.60 mTW (see News Release from March 31, 2025). For the remainder of 2025, Vizsla Silver will continue its ongoing fully funded +25,000 metre exploration drill program designed to test vein extensions and geophysical anomalies at Colorada North, Napoleon – Copala fault intersection, Animas (La Pipa), and to explore for potential blind to surface veins along three E-W oriented drill-hole Fences in Panuco West. Other district wide exploration initiatives planned for Q4 2025 include a time domain Electro Magnetic (TEM) survey, airborne geophysical survey on over 1,000-line km with flight lines oriented NE-SW at 100 m line-spacing and NW-SE oriented tie-lines at 500 m spacing. Data from these surveys will be combined with existing geological, geochemical, alteration, and WorldView-III multispectral datasets to refine exploration targeting and guide the search for new zones of mineralization. District Targets: Notable targets to be tested in the central, and east area of the district with potential to host similar mineral resources to that outlined in Project #1 in the west include: La Pipa is a high-grade shoot discovered this year along the proliferous 7-km long Animas vein system. The company plans to drill +8,000 metres on Animas to follow up on the recent discovery and to explore for additional high-grade shoots in the area. Camelia-San Dimas area consists of two almost vertical subparallel veins in the Camelia trend and the high-grade, flat lying and east dipping San Dimas Vein. San Fernando-Nacaral are two parallel veins with significant silver anomalies on surface. More importantly, geologic mapping suggests that exposed outcrops of the veins occur proximal to the paleosurface, thus providing great potential at depth. El Roble, Oregano and La Wicha are NW trending veins located on the eastern side of the Project. Previous mapping and rock geochemistry on these veins suggest high elevation in the vein system and therefore warrant additional exploration drilling. Jesusita-Palos Verdes is a northeast trending vein target in the east area of the district. Positive drill results and alteration-based interpretations done by Prismo Metals, combined with significant silver anomalies on surface and extensive vein outcrops warrant additional drilling at depth. Greenfields exploration: The recent acquisitions of the La Garra, San Enrique and Santa Fé properties has increased Vizsla Silver's land package to over 47,000 Ha (~650% increase) in the highly prospective Panuco-San Dimas corridor situated on the emerging Western Mexico Silver belt. This adds yet another layer of blue-sky exploration potential beyond that of the initial contiguous Panuco District. The Company has started building a GIS database of the region and plans to apply the same exploration approach that has been successful at the initial Panuco property to these three prospects in the future. The Company is undertaking mapping and interpretations and will target initial drilling at Santa Fé in the coming quarters. Santa Fé The Santa Fé Project is situated along the highly prospective Panuco – San Dimas corridor and includes both production and exploration concessions covering 12,229 Ha. Santa Fé is located to the south of the Company's flagship Panuco project and benefits from permitted on-site production infrastructure including an operating 350 tonne per day (" tpd") mill. Mining at Santa Fé likely dates back to the Spanish era, based on an old smelter-furnace and shaft discovered by Eduardo de La Peña (current operator) when he started mining waste dumps back in 2008; approximately 20,000 tonnes of dump-material containing ~2.0 g/t gold and ~200 g/t silver were trucked to the El Coco mill at Panuco for processing (Pers. Comm. Eduardo de la Peña). Between 2008 and 2014, Mr. de La Peña staked additional claims around the original Santa Fé mine and in 2014 drilled the first 1,000 meters on the property, discovering the "Mother" or "Santa Fé" vein. In 2014, Oro de Altar (ODA, a subsidiary of Aurico Gold) optioned the property and conducted a high-resolution airborne magnetic and radiometric survey, mapped the mine area and drilled 11,957 meters in 45 diamond drill holes. Aurico´s drilling delineated a high-grade shoot along the main "Mother" vein, which motivated Mr. de la Peña to construct additional mine infrastructure including a 6 km long power line in 2016, and later in 2018, a processing plant and underground mine. In 2020, Minera Cuzcatlan (subsidiary of Fortuna Silver Mines Inc.) optioned the property, drilled 7,547 metres in 17 holes, completed an Induced Polarization geophysical survey over approximately 756 Ha, and completed a LiDAR survey over 21,000 Ha. Between 2020 and 2024 the Santa Fé plant processed 370,366 tonnes of ore with average head grades of 203 g/t silver and 2.17 g/t gold (Internal exploration and production reports provided by Mr. Eduardo de la Peña). Vizsla Silver has commenced detailed mapping and analysis of drilling and geophysical data with the objective of generating near-mine drill targets by the end of the third quarter of 2025. Subject to the results of this exploration work, the Company plans to initiate drilling before year-end. The Santa Fé, or Mother Vein, is a NW-striking structure exhibiting classic low sulfidation epithermal characteristics. It has been drill tested along approximately 1,050 meters of strike length. There are six near mine vein targets known to date within an 800 Ha area of the mine: Santa Fé HW (hanging wall), San Jose, San Jose North, Rosarito, Tahonitas and Natalia. Select exploration holes previously drilled by Aurico and Fortuna returned anomalous to significant silver and gold values on these vein targets. Vizsla Silver's technical team is currently reviewing the data to support the development of a near-mine drill program. San Enrique The San Enrique prospect area comprises two titled mining claims covering 10,667 Ha between Panuco and Santa Fé projects in the emerging silver-gold-rich Panuco – San Dimas corridor. LiDAR and airborne magnetic surveys in the area show strong NW-trending lineaments, indicative of regional faults and fractures. Two of these lineaments are aligned and seem to be the SE extensions of the Copala fault and the Cordon del Oro - Animas vein structures in Panuco (see Figure 5). Several factors highlight the strong prospectivity of the San Enrique area. These include its strategic location within the Panuco to San Dimas corridor, proximity to high grade deposits immediately to the north with a measured and indicated mineral resource of 222.4 million ounces silver equivalent and an inferred resource of 138.7 million ounces silver equivalent (refer to Vizsla Silver's press release dated January 6, 2025), structural extensions of the Copala fault and the Cordon to Animas lineament, the presence of multiple domes, and the Santa Fé mine along with six additional vein prospects located directly to the south along a separate northwest trending regional fault. The recently acquired multispectral WorldView-III satellite image covers the whole Panuco and San Enrique claims, which in combination with the existing LiDAR survey, will assist during Vizsla Silver's target generation process. Furthermore, the Company intends to conduct regional recognizance-mapping and a stream-sediment geochemistry at San Enrique and Santa Fé in the near future. La Garra The La Garra-Metates District, comprised of 16 claims covering 16,962 Ha, is located approximately 32 km N-NW of the Panuco Project and 32 km south-southwest of First Majestic's flagship San Dimas mine. The district contains N-NNW-trending silver-gold-rich epithermal veins in a geological setting – akin to the Panuco Project and San Dimas. To date, two principal vein systems have been identified: the NS trending La Garra vein, with approximately 2.6 kilometers of known strike length, and the northwest trending Cerro Verde to Las Playas vein system, with approximately 1.8 kilometers of known strike length. In December 2023, Vizsla Silver completed a five-day site visit, collecting 37 samples from vein outcrops and underground pillars within the La Garra and Cerro Verde to Las Playas vein systems. Fourteen rock chip samples taken across veins (ranging from 0.30 to 2.50 metres in width) returned silver equivalent grades greater than 200 g/t, including 2.22 to 12.30 g/t gold and 22 to 1,156 g/t silver. Given the area's favorable location within the emerging Panuco to San Dimas silver and gold-rich corridor, along with its geological setting, vein orientation, and observed high grades, Vizsla Silver's technical team believes the La Garra–Metates District holds strong potential for the discovery of high grade mineralization along strike and at depth. Equity Compensation Grant In accordance with the existing approved equity compensation plan, the company has granted 42,500 stock options (" Options") at an exercise price of $4.33 and 132,000 restricted share units (each, an " RSU") employees and consultants (the " Optionees") of the Company. The Options are exercisable for a period of five years and will vest over the next two years and the RSUs will vest in three equal annual instalments commencing on the first anniversary of the grant date. The Options and RSUs are subject to the approval and policies of the Toronto Stock Exchange and the NYSE American. About the Panuco Project The newly consolidated Panuco silver-gold project is an emerging high-grade discovery located in southern Sinaloa, Mexico, near the city of Mazatlán. The original contiguous 7,189.5 Ha past producing district benefits from over 86 kilometres of total vein extent, 35 kilometres of underground mines, roads, power, and permits. The district contains intermediate to low sulfidation epithermal silver and gold deposits related to siliceous volcanism and crustal extension in the Oligocene and Miocene. Host rocks are mainly continental volcanic rocks correlated to the Tarahumara Formation. On January 6, 2025, the Company announced an updated mineral resource estimate for Panuco which includes an estimated in-situ combined measured and indicated mineral resource of 222.4 Moz AgEq and an in-situ inferred resource of 138.7 Moz AgEq (please refer to Vizsla's press release dated January 6, 2025). About Vizsla Silver Vizsla Silver is a Canadian mineral exploration and development company headquartered in Vancouver, BC, focused on advancing its flagship, 100%-owned Panuco silver-gold project located in Sinaloa, Mexico. The Company recently completed a Preliminary Economic Study for Panuco in July 2024 which highlights 15.2 Moz AgEq of annual production over an initial 10.6-year mine life, an after-tax NPV5% of US$1.1B, 86% IRR and a 9-month payback at US$26/oz Ag and US$1,975/oz Au. Vizsla Silver aims to become the world's leading silver company by implementing a dual track development approach at Panuco, advancing mine development, while continuing district scale exploration through low-cost means. Quality Assurance / Quality Control Drill core samples were shipped to ALS Limited in Zacatecas, Zacatecas, Mexico and in North Vancouver, Canada for sample preparation and for analysis at the ALS laboratory in North Vancouver and rock samples were shipped to SGS Lab in Durango Mexico for sample preparation and analysis. The ALS Zacatecas, North Vancouver facilities and SGS lab are ISO 9001 and ISO/IEC 17025 certified. Silver and base metals were analyzed using a four-acid digestion with an ICP finish and gold was assayed by 30-gram fire assay with atomic absorption ("AA") spectroscopy finish. Over limit analyses for silver, lead and zinc were re-assayed using an ore-grade four-acid digestion with AA finish. Control samples comprising certified reference samples, duplicates and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance / quality control protocol. Qualified Person In accordance with NI 43-101, Jesus Velador, Ph.D. MMSA QP, Vice President of Exploration, is the Qualified Person for the Company and has reviewed and approved the technical and scientific content of this news release. Information Concerning Estimates of Mineral Resources The scientific and technical information in this news release was prepared in accordance with NI 43-101 which differs significantly from the requirements of the U.S. Securities and Exchange Commission (the "SEC"). The terms "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" used herein are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards (the "CIM Definition Standards"), which definitions have been adopted by NI 43-101. Accordingly, information contained herein providing descriptions of our mineral deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies subject to the United States Federal securities laws and the rules and regulations thereunder. You are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, "inferred mineral resources" are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. Under Canadian rules, estimates of inferred mineral resources may not form the basis of Feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures. Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7. Effective February 25, 2019, the SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as amended (the "SEC Modernization Rules"), with compliance required for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". Information regarding mineral resources contained or referenced herein may not be comparable to similar information made public by companies that report according to U.S. standards. While the SEC Modernization Rules are purported to be "substantially similar" to the CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Definitions Standards. Accordingly, there is no assurance any mineral resources that the Company may report as "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the resource estimates under the standards adopted under the SEC Modernization Rules. This news release includes certain "Forward–Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward–looking information" under applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "would", "could", "schedule" and similar words or expressions, identify forward–looking statements or information. These forward–looking statements or information relate to, among other things: the Company's exploration and development plans, including key exploration objectives for 2025. Forward–looking statements and forward–looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Vizsla, future growth potential for Vizsla and its business, and future exploration plans are based on management's reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold, and other metals; costs of exploration and development; the estimated costs of development of exploration projects; Vizsla's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms. These statements reflect Vizsla's respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance, or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward–looking statements or forward-looking information and Vizsla has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company's dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company's mining activities in Mexico; regulatory, consent or permitting delays; risks relating to reliance on the Company's management team and outside contractors; risks regarding mineral resources and reserves; the Company's inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company's interactions with surrounding communities and artisanal miners; the Company's ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption "Risk Factors" in Vizsla's management discussion and analysis. Readers are cautioned against attributing undue certainty to forward–looking statements or forward-looking information. Although Vizsla has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Vizsla does not intend, and does not assume any obligation, to update these forward–looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law. SOURCE Vizsla Silver Corp.
