U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED ~~April 30, 2023~~January 31, 2024.

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _________.

Commission File Number: 001-33125

SILVER BULL RESOURCES, INC.

(Exact name of registrant as specified in its charter)

Nevada	91-1766677
State or other jurisdiction of incorporation or organization	(I.R.S. Employer Identification No.)

777 Dunsmuir Street, Suite 1605

Vancouver, B.C., Canada V7Y 1K4

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (604)-687-5800

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of ~~June 13, 2023,~~March 15, 2024, there were ~~35,680,652~~47,365,652 shares of the registrant’s $0.01 par value common stock outstanding, the registrant’s only outstanding class of voting securities.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

TABLE OF CONTENTS

Page

PART I – FINANCIAL INFORMATION	3
ITEM 1. FINANCIAL STATEMENTS.	3
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	1921
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.	26
ITEM 4. CONTROLS AND PROCEDURES.	26
PART II – OTHER INFORMATION	2627
ITEM 1. LEGAL PROCEEDINGS.	2627
ITEM 1A. RISK FACTORS.	2627
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.	2627
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.	2627
ITEM 4. MINE SAFETY DISCLOSURES.	2627
ITEM 5. OTHER INFORMATION.	2627
ITEM 6. EXHIBITS.	2728
SIGNATURES	2829

[The balance of this page has been intentionally left blank.]

2

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED BALANCE SHEETS

April 30,
2023

October 31,
2022

(Unaudited)
ASSETS

CURRENT ASSETS
Cash and cash equivalents (Note 13) $ 497,783 $ 886,728
Other receivables 6,287 2,834
Prepaid expenses and deposits 35,411 49,537
Due from related party (Note 5) 2,428 23,196
Total Current Assets 541,909 962,295

Value-added tax receivable, net of allowance for uncollectible taxes of $506,311 and $449,219, respectively (Note 6) 134,639 127,036
Office and mining equipment, net (Note 7) 136,230 143,568
Property concessions (Note 8) 5,004,386 5,019,927
TOTAL ASSETS $ 5,817,164 $ 6,252,826

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable $ 313,844 $ 159,585
Accrued liabilities and expenses 275,032 179,607
Income tax payable 1,500 3,000
Loan payable (Note 9) 44,189 —
Total Current Liabilities 634,565 342,192

Loan payable (Note 9) — 43,959
TOTAL LIABILITIES $ 634,565 $ 386,151

COMMITMENTS AND CONTINGENCIES (Note 14)

STOCKHOLDERS’ EQUITY (Notes 4, 10, 11 and 12)
Common stock, $0.01 par value; 150,000,000 shares authorized,
35,680,652 and 35,055,652 shares issued and outstanding, respectively 2,424,665 2,418,415
Additional paid-in capital 140,883,647 140,750,310
Accumulated deficit (138,217,961 ) (137,394,298 )
Other comprehensive income 92,248 92,248
Total Stockholders’ Equity 5,182,599 5,866,675

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 5,817,164 $ 6,252,826

	January 31, 2024			October 31, 2023
	(Unaudited)			(Audited)
ASSETS

CURRENT ASSETS
Cash and cash equivalents (Note 15)	$	489,502		$	1,008,507
Other receivables		4,303			5,685
Accounts receivable (Note 5)		209,682			140,097
Prepaid expenses and deposits		34,061			44,637
Due from related party (Note 7)		62,840			57,853
Total Current Assets		800,388			1,256,779


Value-added tax receivable, net of allowance for uncollectible taxes of $570,472 and $536,010, respectively (Note 8)		106,519			100,613
Office and mining equipment, net (Note 9)		128,494			130,937
Property concessions (Note 10)		5,004,386			5,004,386
TOTAL ASSETS	$	6,039,787		$	6,492,715

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable	$	84,897		$	517,489
Accrued liabilities and expenses		340,265			258,590
Income tax payable		4,000			3,000
Loan payable (Note 11)		—			43,256
Total Current Liabilities		429,162			822,335

Warrant derivative liability (Note 14)		148,171			78,088
TOTAL LIABILITIES		577,333			900,423

COMMITMENTS AND CONTINGENCIES (Note 16)

STOCKHOLDERS’ EQUITY (Notes 6, 12, 13 and 14)
Common stock, $0.01 par value; 150,000,000 shares authorized, 47,365,652 shares issued and outstanding		2,541,515			2,541,515
Additional paid-in capital		141,666,852			141,604,015
Accumulated deficit		(138,838,161	)		(138,645,486	)
Other comprehensive income		92,248			92,248
Total Stockholders’ Equity		5,462,454			5,592,292

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	6,039,787		$	6,492,715

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

3

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)

Three Months Ended
April 30,

Six Months Ended
April 30,

2023 2022 2023 2022

REVENUES $ —   $ —   $ —   $ —

EXPLORATION AND PROPERTY HOLDING COSTS
Exploration and property holding costs 38,259 53,493 155,465 161,781
Depreciation (Note 7) 3,667 5,483 7,338 10,726
Concessions impairment (Note 8) —   —   15,541 —
Goodwill impairment —   2,058,031 —   2,058,031
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS 41,926 2,117,007 178,344 2,230,538

GENERAL AND ADMINISTRATIVE EXPENSES
Personnel 106,906 187,516 195,680 279,651
Office and administrative 65,919 96,374 100,431 131,222
Professional services 219,283 59,805 266,247 118,552
Directors’ fees 26,324 69,954 60,150 88,870
Provision for uncollectible value-added taxes (Note 6) 2,108 2,867 10,434 9,302
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES 420,540 416,516 632,942 627,597

LOSS FROM OPERATIONS (462,466 ) (2,533,523 ) (811,286 ) (2,858,135 )

OTHER EXPENSES
Interest income 6,297 5 13,091 11
Foreign currency transaction loss (2,554 ) (13,962 ) (5,396 ) (18,355 )
Other costs (Note 13) (19,355 ) —   (19,355 ) —
      TOTAL OTHER EXPENSES (15,612 ) (13,957 ) (11,660 ) (18,344 )

LOSS BEFORE INCOME TAXES (478,078 ) (2,547,480 ) (822,946 ) (2,876,479 )

INCOME TAX RECOVERY (EXPENSE) 283 (500 ) (717 ) (1,500 )

NET AND COMPREHENSIVE LOSS (477,795 ) (2,547,980 ) (823,663 ) (2,877,979 )

BASIC AND DILUTED NET LOSS PER COMMON SHARE $ (0.01 ) $ (0.07 ) $ (0.02 ) $ (0.08 )
  BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES 35,420,820 34,958,654 35,235,210 34,749,841

	Three Months Ended January 31,
	2024			2023
REVENUES	$	—		$	—

EXPLORATION AND PROPERTY HOLDING COSTS
Exploration and property holding costs		131,890			117,205
Depreciation (Note 9)		2,442			3,672
Funding Agreement reimbursement (contra expense) (Note 5)		(75,084	)		—
Concessions impairment (Note 10)		—			15,541
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS		59,248			136,418

GENERAL AND ADMINISTRATIVE EXPENSES
Personnel		98,944			88,774
Office and administrative		62,917			34,512
Professional services		69,590			46,964
Directors’ fees		46,664			33,826
Provision for uncollectible value-added taxes (Note 8)		6,208			8,326
Funding Agreement reimbursement (contra expense) (Note 5)		(194,501	)		—
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES		89,822			212,402

LOSS FROM OPERATIONS		(149,070	)		(348,820	)

OTHER (EXPENSES) INCOME
Interest income		2,998			6,794
Foreign currency transaction gain (loss)		6,376			(2,842	)
Other income (Note 11)		14,719			—
Change in fair value of warrants derivative liability (Note 14)		(66,698	)		—
TOTAL OTHER (EXPENSES) INCOME		(42,605	)		3,952

LOSS BEFORE INCOME TAXES		(191,675	)		(344,868	)

INCOME TAX EXPENSE		(1,000	)		(1,000	)
NET AND COMPREHENSIVE LOSS		(192,675	)		(345,868	)


BASIC AND DILUTED NET LOSS PER COMMON SHARE (Note 6)	$	(0.00	)	$	(0.01	)

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING		47,365,652			35,055,652

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

4

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

Common Stock
Number of Shares Amount Additional Paid-in Capital
Accumulated
Deficit

Other
Comprehensive Income

Total
Equity

Six months ended April 30, 2023
Balance, October 31, 2022 35,055,652 $ 2,418,415 $ 140,750,310 $ (137,394,298 ) $ 92,248 $ 5,866,675
Issuance of common stock as follows:
- For compensation at $0.14 per share (Note 10) 625,000 6,250 82,161 —   —   88,411
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 11) —   —   51,176 —   —   51,176
Net loss for the six-month period ended April 30, 2023 —   —   —   (823,663 ) —   (823,663 )
Balance, April 30, 2023 35,680,652 $ 2,424,665 $ 140,883,647 $ (138,217,961 ) $ 92,248 $ 5,182,599

	Common Stock
	Number of Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Other Comprehensive Income		Total Stockholders’ Equity

Three months ended January 31, 2024
Balance, October 31, 2023	47,365,652	$	2,541,515	$	141,604,015	$	(138,645,486	)	$	92,248	$	5,592,292
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 13)	—		—		62,837		—			—		62,837
Net loss for the three-month period ended January 31, 2024	—		—		—		(192,675	)		—		(192,675	)
Balance, January 31, 2024	47,365,652	$	2,541,515	$	141,666,852	$	(138,838,161	)	$	92,248	$	5,462,454

	Common Stock
	Number of Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Other Comprehensive Income		Total Stockholders’ Equity

Three months ended January 31, 2023
Balance, October 31, 2022	35,055,652	$	2,418,415	$	140,750,310	$	(137,394,298	)	$	92,248	$	5,866,675
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees and advisors (Note 13)	—		—		54,350		—			—		54,350
Net loss for the three-month period ended January 31, 2023	—		—		—		(345,868	)		—		(345,868	)
Balance, January 31, 2023	35,055,652	$	2,418,415	$	140,804,660	$	(137,740,166	)	$	92,248	$	5,575,157

Common Stock
Number of Shares Amount
Additional
Paid-in Capital

Accumulated
Deficit

Other
Comprehensive Income

Total
Equity

Three months ended April 30, 2023
Balance, January 31, 2023 35,055,652 $ 2,418,415 $ 140,804,660 $ (137,740,166 ) $ 92,248 $ 5,575,157
Issuance of common stock as follows:

- For compensation at $0.14 per share (Note 10) 625,000 6,250 82,161 —   —   88,411
Stock option activity as follows:
- Stock-based compensation (recovery) for options issued to directors, officers, employees, and advisors (Note 11) —   —   (3,174 ) —   —   (3,174 )
Net loss for the three-month period ended April 30, 2023 —   —   —   (477,795 ) —   (477,795 )
Balance, April 30, 2023 35,680,652 $ 2,424,665 $ 140,883,647 $ (138,217,961 ) $ 92,248 $ 5,182,599

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

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF ~~STOCKHOLDERS’ EQUITY (CONTINUED)~~CASH FLOWS (Unaudited)

Common Stock
Number of Shares Amount
Additional
Paid-in Capital

Accumulated
Deficit

Other
Comprehensive Income
Total Stockholders’ Equity
Six months ended April 30, 2022
Balance, October 31, 2021 34,547,838 $ 2,413,337 $ 139,803,515 (134,226,099 ) $ 92,248 $ 8,083,001
Issuance of common stock as follows:
- For compensation at $0.25 per share (Note 10) 507,814 5,078 123,016 —   —   128,094
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 11) —   —   197,080 —   —   197,080
Net loss for the six-month period ended April 30, 2022 —   —   —   (2,877,979 ) —   (2,877,979 )
Balance, April 30, 2022 35,055,652 $ 2,418,415 $ 140,123,611 (137,104,078 ) $ 92,248 $ 5,530,196


	Three Months Ended January 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(192,675	)	$	(345,868	)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation		2,442			3,672
Provision for uncollectible value-added taxes		6,208			8,326
Foreign currency transaction loss (gain)		9,345			(497	)
Stock options issued for compensation (Note 13)		62,837			54,350
Change in fair value of warrant derivative liability (Note 14)		66,698			—
Other income (Note 11)		(14,719	)		—
Concessions impairment		—			15,541
Changes in operating assets and liabilities:
Value-added tax receivable		(6,759	)		(2,714	)
Other receivables		1,391			(492	)
Accounts receivable		(69,585	)		—
Prepaid expenses and deposits		10,835			12,291
Due from related party (Note 7)		(4,987	)		12,314
Accounts payable		(434,734	)		90,817
Accrued liabilities and expenses		73,136			10,340
Income tax payable		1,000			1,000
Net cash used in operating activities		(489,567	)		(140,920	)


CASH FLOWS FROM FINANCING ACTIVITY:
Loan repayment		(29,438	)		—
Net cash used in financing activities		(29,438	)		—

					—
Net decrease in cash and cash equivalents		(519,005	)		(140,920	)

Cash and cash equivalents beginning of period		1,008,507			886,728

Cash and cash equivalents end of period	$	489,502		$	745,808

Common Stock
Number of Shares Amount Additional Paid-in Capital
Accumulated
Deficit

Other
Comprehensive Income

Total
Stockholders’ Equity

Three months ended April 30, 2022
Balance, January 31, 2022 34,547,838 $ 2,413,337 $ 139,803,515 (134,556,098 ) $ 92,248 $ 7,753,002
Issuance of common stock as follows:
- For compensation at $0.25 per share (Note 10) 507,814 5,078 123,016 —   —   128,094
Stock option activity as follows:
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 11) —   —   197,080 —   —   197,080
Net loss for the three-month period ended April 30, 2022 —   —   —   (2,547,980 ) —   (2,547,980 )
Balance, April 30, 2022 35,055,652 $ 2,418,415 $ 140,123,611 (137,104,078 ) $ 92,248 $ 5,530,196

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

6

SILVER BULL RESOURCES, INC.

(AN EXPLORATION STAGE COMPANY)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)

Six Months Ended
April 30,

2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (823,663 ) $ (2,877,979 )
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation 7,338 10,726
Concessions impairment (Note 8) 15,541 —
Goodwill impairment —   2,058,031
Provision for uncollectible value-added taxes 10,434 9,302
Foreign currency transaction (income) loss (2,194 ) 36,363
Stock options issued for compensation (Note 11) 51,176 197,080
Shares of common stock issued for services (Note 10) 88,411 128,094
Changes in operating assets and liabilities:
Value-added tax receivable (5,870 ) (10,572 )
Other receivables (3,435 ) (272 )
Prepaid expenses and deposits 14,581 148,087
Accounts payable 178,276 (159,201 )
Accrued liabilities and expenses 61,193 (117,920 )
Due to related party (Note 5) 20,767 7,547
    Income tax payable (1,500 ) 1,500
Net cash used in operating activities (388,945 ) (569,214 )

CASH FLOWS FROM INVESTING ACTIVITY:
Proceeds from sale of investments —   469,484
Net cash provided by investing activity —   469,484

CASH FLOWS FROM FINANCING ACTIVITY:
Net cash provided by financing activity —   —

Effect of exchange rates on cash and cash equivalents —   (2,574 )

Net decrease in cash and cash equivalents (388,945 ) (102,304 )

Cash and cash equivalents beginning of period 886,728 189,607

Cash and cash equivalents end of period $ 497,783 $ 87,303

		Three Months Ended January 31,
		2024		2023

SUPPLEMENTAL CASH FLOW DISCLOSURES:

Income taxes paid	$	—	$	—
Interest paid	$	—	$	—

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

7

~~SILVER BULL RESOURCES, INC.~~

~~(AN EXPLORATION STAGE COMPANY)~~

~~CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)~~

~~(Unaudited)~~

Six Months Ended
April 30,

2023 2022

SUPPLEMENTAL CASH FLOW DISCLOSURES:

Income taxes paid $ 2,220 $ 1,803
Interest paid — $ —

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

8

NOTE 1 – ORGANIZATION, DESCRIPTION OF BUSINESS AND GOING CONCERN

Silver Bull Resources, Inc. (the “Company”) was incorporated in the State of Nevada on November 8, 1993 as the Cadgie Company for the purpose of acquiring and developing mineral properties. The Cadgie Company was a spin-off from its predecessor, Precious Metal Mines, Inc. On June 28, 1996, the Company’s name was changed to Metalline Mining Company. On April 21, 2011, the Company’s name was changed to Silver Bull Resources, Inc. The Company’s fiscal year-end is October 31. The Company has not realized any revenues from its planned operations and is considered an exploration stage company. The Company has not established any reserves with respect to its exploration projects and is not expected to enter into the development stage with respect to any of its projects.

The Company ~~has been engaged in the business of mineral exploration. The Company currently~~ owns a number of property concessions located in Coahuila, Mexico (collectively known as the “Sierra Mojada Property”). The Company conducts its operations in Mexico through its wholly-owned subsidiary corporations, Minera Metalin S.A. de C.V. (“Minera Metalin”) and Minas de Coahuila SBR S.A. de C.V. (“Minas”).

On April 16, 2010, Metalline Mining Delaware, Inc., a wholly-owned subsidiary of the Company incorporated in the State of Delaware, was merged with and into Dome Ventures Corporation (“Dome”), a Delaware corporation. As a result, Dome became a wholly-owned subsidiary of the Company. Dome has a wholly-owned subsidiary Dome Asia Inc., ~~which is~~ incorporated in the British Virgin Islands.

On April 23, 2023, Nomad Minerals Ltd. (“Nomad Minerals"), a wholly-owned subsidiary of the Company, was incorporated in British Columbia, Canada. On April 28, 2023, Nomad Metals Limited was incorporated at Astana International Financial Centre in Astana, Republic of Kazakhstan, as a wholly-owned subsidiary of Nomad Minerals.

The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally in the Sierra Mojada Property located in Coahuila, Mexico (the “Sierra Mojada Project”). The Company has not determined whether its exploration properties contain ore reserves that are economically recoverable. The ultimate realization of the Company’s investment in exploration properties is dependent upon the success of future property sales, the existence of economically recoverable reserves, and the ability of the Company to obtain financing or make other arrangements for exploration, development, and future profitable production activities. The ultimate realization of the Company’s investment in exploration properties cannot be determined at this time.

~~Illegal Blockade~~The Company is presently pursuing an Arbitration Claim (the “Arbitration” or the “Claim”) against the United Mexican States (“Mexico”). The Arbitration arises from Mexico’s unlawful expropriation and other unlawful treatment of ~~Sierra Mojada Property~~

~~The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally with respect to the Sierra Mojada Property located in Coahuila, Mexico.~~

~~On June 1, 2018, the Company~~Silver Bull and its subsidiaries Minera Metalin and Contratistas de Sierra Mojada S.A. de C.V. entered into an earn-in option agreement (the “South32 Option Agreement”) with South32 International Investment Holdings Pty Ltd (“South32”), a wholly-owned subsidiary of South32 Limited (ASX/JSE/LSE: S32), whereby South32 was able to obtain an option to purchase 70% of the shares of Minera Metalin (the “South32 Option”).

On October 11, 2019, the Company and its subsidiary Minera Metalin issued a notice of force majeure to South32 pursuant to the South32 Option Agreement. Due to an illegal blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (“Mineros Norteños”), the Company halted all work on the Sierra Mojada Property. The notice of force majeure was issued because the Company and its subsidiary Minera Metalin was unable to perform their obligations under the South32 Option Agreement due to the blockade. Pursuant to the South32 Option Agreement, any time period provided for in the South32 Option Agreement was to be generally extended by a period equal to the period of delay caused by the event of force majeure.

~~On August 31, 2022, due to the ongoing blockade of the site, the South32 Option Agreement was mutually terminated by South32 and the Company.~~

9

No portion of the equity value of the Company has been classified as temporary equity as the South32 Option has no intrinsic value. South32 paid $518,000 to the Company as a final payment for the exploration costs incurred by the Company during the blockade and the Company released South32 from all of claims as of the date of termination.

~~As of June 13, 2023, the blockade by Mineros Norteños at, on and around the Sierra Mojada Property is ongoing, and the Company remains unable to access the Sierra Mojada Property.~~

On March 2, 2023, the Company filed a Notice of Intent with Mexico’s Directorate General of Foreign Investment to initiate a legacy NAFTA claim under Annex 14-C of the United States-Mexico-Canada Agreement to recover economic damagesinvestments resulting from the illegal blockade of ~~the~~Silver Bull’s Sierra Mojada ~~Property by Mineros Norteños (“NAFTA Notice of Intent”).~~Property. The Company ~~has been unable~~is continuing to ~~access the project since the illegal blockade commenced in September 2019. Despite numerous demands~~seek out other exploration projects for potential development and ~~requests for action by the Company, Mexican governmental agencies have allowed this unlawful behaviour to continue and, as such, failed to protect the Company’s~~ investment.

On or before June 30, 2023, the Company intends to file the request for arbitration (the “Request”) in the legacy NAFTA claim at the International Centre for Settlement of Investment Dispute (the “ICSID”).

~~Arras Minerals Corp. Spin-Off~~

On August 12, 2020, the Company entered into an option agreement (the “Beskauga Option Agreement”) with Copperbelt AG, a corporation existing under the laws of Switzerland (“Copperbelt Parent”), and Dostyk LLP, an entity existing under the laws of Kazakhstan and a wholly-owned subsidiary of Copperbelt (the “Copperbelt Sub,” and together with Copperbelt Parent, “Copperbelt”), pursuant to which the Company has the exclusive right and option to acquire Copperbelt’s right, title and 100% interest in the Beskauga property located in Kazakhstan (the “Beskauga Property”), which consists of the Beskauga Main project (the “Beskauga Main Project”) and the Beskauga South project (the “Beskauga South Project,” and together the Beskauga Main Project, the “Beskauga Project”). The transaction contemplated by the Beskauga Option Agreement closed on January 26, 2021.

On February 5, 2021, Arras Minerals Corp. (“Arras”) was incorporated in British Columbia, Canada, as a wholly-owned subsidiary of the Company. On March 19, 2021, pursuant to an asset purchase agreement with Arras, the Company transferred its right, title and interest in and to the Beskauga Option Agreement, among other things, to Arras in exchange for 36,000,000 common shares of Arras. On September 24, 2021, the Company distributed to its shareholders one Arras common share for each Silver Bull share held by such shareholders, or 34,547,838 Arras shares in total. Upon completion of the distribution, the Company retained 1,452,162 Arras common shares as a strategic investment and Arras became a stand-alone company.

In December 2021 and June 2022, the Company sold 600,000 and 852,262 common shares of Arras at a price of $CDN 1.00 and $CDN 1.50 per shares, respectively. The Company has no interest in Arras as of April 30, 2023.

Exploration Stage

The Company has established the existence of mineral resources for the Sierra Mojada Project. The Company has not established proven or probable reserves, as defined by the United States Securities and the U.S. Securities and Exchange Commission (the “SEC”) subpart 1300 of Regulation S-K (“S-K 1300”), through the completion of a “final” or “bankable” feasibility study for Sierra Mojada Project. Furthermore, the Company has no plans to establish proven or probable reserves for Sierra Mojada Project. As a result, and despite the fact that the Company commenced extraction of mineral resources at the Sierra Mojada Property, the Company remains an exploration stage company, as defined by the SEC.

Beginning with the Company’s annual report on Form 10-K for the year ended October 31, 2022, the Company reports its mineral resources in accordance with S-K 1300.

Going Concern

Since its inception in November 1993, the Company has yet to ~~generated~~generate revenue and has incurred an accumulated deficit of ~~$138,218,000.~~$138,838,000. Accordingly, the Company has not generated cash flows from operations. Since inception, the Company has relied primarily upon proceeds from private placements and registered direct offerings of the Company’s equity securities, sales of investments and warrant exercises as the primary sources of financing to fund the Company’s operations. As of ~~April 30, 2023,~~January 31, 2024, the Company had cash and cash equivalents of approximately ~~$498,000. Based~~$489,000. With respect to the anticipated costs associated with the aforementioned arbitration, as of September 5, 2023, the Company has secured third-party arbitration finance from Bench Walk Advisors LLC (“Bench Walk” or the “Funder”) in an amount of up to $9.5 million. The funding has been completed as purchase of a contingent entitlement to damages in the event that a damages award is recovered from Mexico (Note 5).

Despite the arbitration finance in place, based on the Company’s ~~limited~~constrained cash and cash equivalents, and history of losses, there ~~is substantial doubt as to whether~~exists a certain level of uncertainty regarding the Company’s ~~existing cash resources are sufficient~~ability to ~~enable the Company to continue~~sustain its ~~operations for~~operation over the next 12 months as a going concern. While the Company entered into a Funding Agreement aimed at covering arbitration legal costs and certain other costs, supplemental fundraising will be essential to meet more extensive operational demands. Management plans to pursue possible financing and strategic options, including, but not limited to, obtaining additional equity financing, and the exercising of warrants by warrantholders. Management has successfully pursued these options previously and believes that they alleviate the substantial doubt that the Company can continue its operations for the next 12 months as a going concern. However, there is no assurance that the Company will be successful in pursuing these ~~plans~~.plans.

10

These interim condensed consolidated financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary in the event the Company can no longer continue as a going concern. Such adjustments could be material.

NOTE 2 – BASIS OF PRESENTATION

The Company’s interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and applicable rules of the SEC regarding interim reporting. All intercompany transactions and balances have been eliminated during consolidation. Certain information and note disclosures typically included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The consolidated balance sheet at October 31, ~~2022~~2023, was derived from the audited consolidated financial statements. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended October 31, ~~2022.~~2023.

All figures are in United States dollars unless otherwise noted.

The interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, the interim condensed consolidated financial statements furnished herein include all adjustments, all of which are of a routine recurring nature, necessary for a fair statement of the results for the interim periods presented. Uncertainties with respect to estimates and assumptions are inherent in the preparation of the Company’s interim condensed consolidated financial statements. Accordingly, operating results for the ~~six~~three months ended ~~April 30, 2023,~~January 31, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, ~~2023,~~2024, or any future period.

NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies are defined in the Company’s Annual Report on Form 10-K for the year ended October 31, ~~2022~~2023 filed with the SEC on January 26, ~~2023.~~2024.

Recent Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

Other recent accounting pronouncements issued by the ~~Financial Accounting Standards Board (“FASB”)~~FASB (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a significant impact on the Company’s present or future consolidated financial statements.

NOTE 4 – ILLEGAL BLOCKADE OF SIERRA MOJADA PROPERTY AND ICSID ARBITRATION

The Company’s efforts and expenditures have been concentrated on the exploration of properties, principally with respect to the Sierra Mojada Property located in Coahuila, Mexico.

On June 1, 2018, the Company and its subsidiaries Minera Metalin and Contratistas de Sierra Mojada S.A. de C.V. entered into an earn-in option agreement (the “South32 Option Agreement”) with South32 International Investment Holdings Pty Ltd (“South32”), a wholly-owned subsidiary of South32 Limited (ASX/JSE/LSE: S32), whereby South32 was able to obtain an option to purchase 70% of the shares of Minera Metalin (the “South32 Option”).

On October 11, 2019, the Company and its subsidiary Minera Metalin issued a notice of force majeure to South32 pursuant to the South32 Option Agreement. Due to an illegal blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, S.C.L. (“Mineros Norteños”), the Company halted all work on the Sierra Mojada Property. The notice of force majeure was issued because the Company and its subsidiary Minera Metalin were unable to perform their obligations under the South32 Option Agreement due to the blockade. Pursuant to the South32 Option Agreement, any time period provided for in the South32 Option Agreement was to be generally extended by a period equal to the period of delay caused by the event of force majeure.

On August 31, 2022, due to the ongoing blockade of the site, the South32 Option Agreement was mutually terminated by South32 and the Company.

No portion of the equity value of the Company was classified as temporary equity as the South32 Option had no intrinsic value. South32 paid $518,000 to the Company as a final payment for the exploration costs incurred by the Company during the blockade, and the Company released South32 from all of claims as of the date of termination.

As of March 15, 2024, the blockade by Mineros Norteños at, on and around the Sierra Mojada Property is ongoing, and the Company remains unable to access the Sierra Mojada Property.

On March 2, 2023, the Company filed the NAFTA Notice of Intent. The Company has been unable to access the project since the illegal blockade commenced in September 2019. Despite numerous demands and requests for action by the Company, Mexican governmental agencies have allowed this unlawful conduct to continue and, as such, failed to protect the Company’s investment.

The Company held a meeting with Mexican government officials in Mexico City on May 30, 2023, in an attempt to explore amicable settlement options and avoid arbitration. However, the 90-day period for amicable settlement under NAFTA expired on June 2, 2023, without a resolution.

On June 28, 2023, the Company commenced international arbitration proceedings against Mexico under the United States-Mexico-Canada Agreement (“USMCA”) and NAFTA (the “Arbitration”). The Arbitration was initiated under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States process, which falls under the auspices of the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”), to which Mexico is a signatory.

The Company has engaged Boies Schiller Flexner (UK) LLP as its legal advisers on the legacy NAFTA claim.

NOTE 5 – ARBITRATION FINANCING

On September 5, 2023, the Company entered into a litigation funding agreement (“Funding Agreement” or the “LFA”) with Bench Walk, a third party, which specializes in funding litigation and arbitration claims. Under the terms of the LFA, Bench Walk has agreed to fund the Company with up to $9.5 million to cover the Company’s legal, tribunal and external expert costs and defined corporate operating expenses associated with the Arbitration proceedings as a purchase of a contingent entitlement to damages.

During the three months ended January 31, 2024, pursuant to the terms of the LFA, the Company received a reimbursement of corporate operating costs in the amount of $200,000 from Bench Walk (year ended October 31, 2023: $96,740). Additionally, Bench Walk has made payments on the Company’s behalf for legal and arbitration costs totaling $205,300 during the three months ended January 31, 2024 and accumulated legal and arbitration costs of $864,878 since September 2023. The Company continues to have complete control over the conduct of the international arbitration proceedings, insofar as the proceedings relate to the Company’s claims, and continues to have the right to settle with Mexico, discontinue proceedings, pursue the proceedings to a merits hearing and take any action the Company considers appropriate to enforce the resulting arbitral award.

The Company agreed that Bench Walk shall be entitled to receive a share of any proceeds arising from the Claim (the “Claim Proceeds”) of up to 3.5x Bench Walk’s capital outlay (or, if greater, a return of 1.0x Bench Walk’s capital outlay plus 30% of Claim Proceeds). The actual return to Bench Walk may be lower than the foregoing amounts depending on how quickly the Claim is resolved.

As security for Bench Walk’s entitlement to receive a share of the Claim Proceeds under the LFA, the Company granted to Bench Walk a security interest in the Claim Proceeds, the Claim, all documents of title pertaining to the Claim, rights under any appeal bond or similar instrument posted by any of the defendants in the Claim, and all proceeds of any of the foregoing.

During the three months ended January 31, 2024 and fiscal year ended October 31, 2023, the following is a summary of the Company’s expenditures that have been incurred and reimbursed or are expected to be reimbursed from Bench Walk.


	January 31, 2024			October 31, 2023

Exploration and property holding costs	$	75,084		$	27,829
Personnel		57,575			49,812
Office and administrative		53,689			68,303
Professional services		60,841			47,974
Directors’ fees		22,396			42,919
		269,585			236,837
Less: Received		(59,903	)		(96,740	)
Accounts receivable	$	209,682		$	140,097

NOTE 46 – NET LOSS PER SHARE

The Company had stock options and warrants outstanding at ~~April 30,~~January 31, 2024 and 2023 ~~and 2022~~ that upon exercise were issuable into ~~4,971,289~~12,538,788 and ~~5,215,039~~5,165,039 shares of the Company’s common stock, respectively. They were not included in the calculation of loss per share because they would have been anti-dilutive.

NOTE 57 – DUE FROM RELATED PARTY

As of ~~April 30, 2023,~~January 31, 2024, due from related party consists of ~~$2,428~~$62,840 (October 31, ~~2022~~2023 - ~~$23,196)~~$57,853) due from Arras Minerals Corp. (“Arras”) for shared employees’ salaries and office expenses. This amount is non-interest bearing and is to be repaid on demand.

NOTE 68 – VALUE-ADDED TAX RECEIVABLE

Value-added tax (“VAT”) receivable relates to VAT paid in Mexico. The Company estimates a net VAT of ~~$134,639~~$106,519 (October 31, ~~2022~~2023 - ~~$127,036)~~$100,613) will be received and believes that it remains legally entitled to be refunded the full amount of the VAT receivable and intends to rigorously continue its VAT recovery efforts. While the Company continues to pursue recovery from the Mexican government, the outcomes and process for recovering VAT can be lengthy and unpredictable based on the continued failure to recover the VAT receivable and a recent preliminary unfavorable ruling from the Mexican tax authority, which the Company is in the process of challenging. The allowance for uncollectible VAT was estimated by management based upon several factors, including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and estimated net recovery after commissions.

A summary of the changes in the allowance for uncollectible VAT for the ~~six~~three months ended ~~April 30, 2023~~January 31, 2024, is as follows:

Allowance for uncollectible VAT – October 31, 2022 $ 449,219
Provision for VAT receivable allowance 10,434
Foreign currency translation adjustment 46,658
Allowance for uncollectible VAT – April 30, 2023 $ 506,311

Allowance for uncollectible VAT – October 31, 2023	$	536,010
Provision for VAT receivable allowance		6,208
Foreign currency translation adjustment		28,254
Allowance for uncollectible VAT – January 31, 2024	$	570,472

NOTE 79 – OFFICE AND MINING EQUIPMENT

The following is a summary of the Company’s office and mining equipment at ~~April 30, 2023~~January 31, 2024 and October 31, ~~2022,~~2023, respectively:

April 30, October 31,
2023 2022

Mining equipment $ 396,153 $ 396,153
Vehicles 92,873 92,873
Buildings and structures 185,724 185,724
Computer equipment and software 74,236 74,236
Well equipment 39,637 39,637
Office equipment 47,597 47,597
836,220 836,220
Less: Accumulated depreciation (699,990 ) (692,652 )
Office and mining equipment, net $ 136,230 $ 143,568

	January 31,			October 31,
	2024			2023

Mining equipment	$	396,153		$	396,153
Vehicles		92,873			92,873
Buildings and structures		185,724			185,724
Computer equipment and software		74,236			74,236
Well equipment		39,637			39,637
Office equipment		47,597			47,597
		836,220			836,220
Less: Accumulated depreciation		(707,726	)		(705,283	)
Office and mining equipment, net	$	128,494		$	130,937

1112

On January 26, 2024, the Company granted options to acquire ~~150,000~~2,425,000 shares of common stock with a weighted-average grant-date fair value of ~~$0.07~~$0.06 per share.

No options were exercised during the three months ended January 31, 2024.

No options were granted or exercised during the three months ended January 31, 2023.

A summary of the range of assumptions used to value stock options granted for the ~~six~~three months ended ~~April 30,~~January 31, 2024 and 2023 ~~and 2022~~ are as follows:

Six Months Ended
April 30,

Options 2023 2022

Expected volatility 74% – 81% 81% – 87%
Risk-free interest rate 3.83% – 3.96% 1.60% – 1.74%
Dividend yield — —
Expected term (in years) 2.50 – 3.50 2.50 – 3.50

12

~~No options were exercised during the six months ended April 30, 2023.~~

	Three Months Ended January 31,
Options	2024	2023

Expected volatility	74% – 78%	—
Risk-free interest rate	4.12% – 4.25%	—
Dividend yield	—	—
Expected term (in years)	2.50 – 3.50	—

~~During~~The expected volatility assumption is based on the ~~six months period ended April 30, 2022, the Company granted options to acquire 3,300,000 shares~~historical of common stock price. The risk-free interest rate assumption is based on yield curves on government zero-coupon bonds with a ~~weighted-average grant-date fair value~~remaining term equal to the stock options’ expected life. The Company has not paid and does not anticipate paying dividends on its common stock. Companies are required to utilize an estimated forfeiture rate when calculating the expense for the reporting period. Based on the best estimate, the Company applied the estimated forfeiture rate of ~~$0.14 per share.~~

~~No options were exercised during~~0% in determining the ~~six months ended April 30, 2022.~~expense recorded in the accompanying statements of comprehensive loss.

The following is a summary of stock option activity for the ~~six~~three months ended ~~April 30, 2023:~~January 31, 2024:

Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value

Outstanding at October 31, 2022 3,193,750 $ 0.25 4.25 $ —
Granted 150,000 0.14
Cancelled (300,000 ) 0.24
Expired (43,750 ) 1.27
Outstanding at April 30, 2023 3,000,000 0.23 3.14 —
Exercisable at April 30, 2023 2,150,000 $ 0.23 2.83 $ —

Options		Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

	Outstanding at October 31, 2023		2,300,000	$	0.22		3.37	$	—
	Granted		2,425,000		0.12
	Outstanding at January 31, 2024		4,725,000		0.17		3.91		—
	Exercisable at January 31, 2024		2,291,667	$	0.19		3.64	$	—

The Company recognized stock-based compensation costs for stock options of ~~$51,176~~$62,837 and ~~$197,080~~$54,350 for the ~~six~~three months ended ~~April 30,~~January 31, 2024 and 2023, ~~and 2022,~~ respectively. As of ~~April 30, 2023,~~January 31, 2024, there was ~~$47,430~~$94,953 of total unrecognized compensation expense.

Summarized information about stock options outstanding and exercisable at ~~April 30, 2023~~January 31, 2024 is as follows:

Options Outstanding Options Exercisable
Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price
$ 0.24 2,850,000 3.05 $ 0.24 2,100,000 $ 0.24
0.14 150,000 4.87 0.14 50,000 0.14

	Options Outstanding					Options Exercisable
	Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price	Number Exercisable		Weighted Average Exercise Price
$	0.23	2,150,000	3.05	$	0.23	1,433,333	$	0.23
	0.14	150,000	4.12		0.14	50,000		0.14
	0.12	2,425,000	4.65		0.12	808,334		0.12
$	0.17	4,725,000	3.91		0.17	2,291,667		0.19

NOTE 1214 – WARRANTS

A summary of warrant activity for the ~~six~~three months ended ~~April 30, 2023~~January 31, 2024 is as follows:

Warrants Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value

Outstanding and exercisable at October 31, 2022 1,971,289 $ 0.59 2.99 $ —
Outstanding and exercisable at April 30, 2023* 1,971,289 0.59 2.50 —

Warrants	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

Outstanding and exercisable at October 31, 2023		7,813,788	$	0.23		4.24	$	—
Outstanding and exercisable at January 31, 2024*		7,813,788		0.23		3.99		46,942

* Pursuant to the terms of the Separation and Distribution Agreement (the “Distribution”), dated as of August 31, 2021, between Silver Bull and Arras entered into in connection with the Distribution, ~~(Note 1),~~ 1,971,289 warrants with a weighted average exercise price of $0.59 are exercisable into one share of common stock of the Company and one common share of Arras. The Company will receive $0.34 of the proceeds from the exercise of each of these warrants and the remaining proceeds will be paid to Arras.

13

No warrants were issued or exercised during the ~~six~~three months ended ~~April 30, 2023~~January 31, 2024 or ~~2022.~~2023.

Summarized information about warrants outstanding and exercisable at ~~April 30, 2023~~January 31, 2024 is as follows:

Warrants Outstanding and Exercisable
Exercise Price
Number
Outstanding
Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price
$ 0.59 1,971,289 2.50 $ 0.59

	Warrants Outstanding and Exercisable
	Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price
$	0.59	1,971,289	1.74	$	0.59
	0.11*	5,842,499	4.75		0.11
$	0.23	7,813,788	3.99	$	0.23

* The Company’s $CDN warrants have been recognized as a derivative liability. The following is a summary of the Company’s warrant derivative liability at January 31, 2024:

Warrant derivative liability at October 31, 2023	$	78,088
Foreign currency translation adjustment		3,385
Change in fair value of warrant derivative liability		66,698
Warrant derivative liability at January 31, 2024	$	148,171

NOTE 1315 – FINANCIAL INSTRUMENTS

Fair Value Measurements

All financial assets and financial liabilities are recorded at fair value on initial recognition. Transaction costs are expensed when incurred, unless they are directly attributable to the acquisition of financial assets or the assumption of liabilities carried at amortized cost, in which case the transaction costs adjust the carrying amount.

The three levels of the fair value hierarchy are as follows:

	Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
	Level 2	Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
	Level 3	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Under fair value accounting, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of cash and cash equivalents, accounts ~~payable,~~receivable, due from related party, accounts payable, loan payable and ~~loan payable.~~warrant derivative liability.

The carrying amounts of cash and cash equivalents, accounts ~~payable and~~receivable, due from related party and accounts payable approximate fair value at ~~April 30, 2023~~January 31, 2024 and October 31, ~~2022~~2023 due to the short maturities of these financial instruments. Loan payable is classified as Level 2 in the fair value hierarchy.

Derivative liability

The Company classifies warrants on its consolidated balance sheets as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance, as the functional currency of Silver Bull is the U.S. dollar and the exercise price of the warrants is the $CDN. The Company has used the Black-Scholes pricing model to fair value the warrants (Note 14). Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates used may cause the value to be higher or lower than that reported. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, is based on the historical volatility adjusted to reflect the implicit discount to historical volatilities observed in the prices of traded warrants. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend yield is expected to be none as the Company has not paid dividends nor does the Company does not anticipate paying any dividend in the foreseeable future.

The derivative is not traded in an active market, and the fair value is determined using valuation techniques. The estimates may be significantly different from those recorded in the consolidated financial statements because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market. All changes in the fair value are recorded in the consolidated statement of operations and comprehensive loss each reporting period. This is considered to be a Level 3 financial instrument.

Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations. To mitigate exposure to credit risk on financial assets, the Company has established policies to ensure the liquidity of funds and ensure that counterparties demonstrate acceptable levels of creditworthiness.

The Company maintains its U.S. dollar and Canadian dollar cash and cash equivalents in bank and demand deposit accounts with major financial institutions with high credit standings. Cash deposits held in Canada are insured by the Canada Deposit Insurance Corporation (“CDIC”) for up to $CDN 100,000. Certain Canadian bank accounts held by the Company exceed these federally insured limits or are uninsured as they relate to U.S. dollar deposits held in Canadian financial institutions. As of ~~April 30, 2023,~~January 31, 2024, and October 31, ~~2022,~~2023, the Company’s cash and cash equivalent balances held in Canadian financial institutions included ~~$423,968~~$428,628 and ~~$802,761,~~$913,397, respectively, which was not insured by the CDIC. The Company has not experienced any losses on such accounts, and management believes that using major financial institutions with high credit ratings mitigates the credit risk to cash and cash equivalents.

14

~~In February~~As at January 31, 2024 and 2023, a cash ~~balance~~and cash equivalents consist of ~~$19,355 ($MXN 349,884) was subject to seizure by the Mexican government due to a dispute over certain years’ VAT~~guaranteed investment certificates of $241,994 and ~~corporate tax. As a result, the~~$3,172, respectively, held in bank accounts.

The Company ~~does not maintain~~also maintains cash in bank accounts in ~~Mexico as of April 30, 2023.~~Mexico. These accounts ~~were~~are denominated in the local currency and are considered uninsured. As of ~~April 30,~~January 31, 2024 and 2023, ~~and October 31, 2022,~~ the U.S. dollar equivalent balance for these accounts was $~~nil~~$24,828 and ~~$10,702,~~$23,183, respectively.

~~As at April 30,~~Other receivables, accounts receivable and due from related party comprise receivable from GST refunds, Bench Walk and a related party. Receivable balances are monitored on an ongoing basis with the result that the Company’s exposure to impairment is not significant. At January 31, 2024 and 2023, ~~and October 31, 2022, cash and cash equivalents consist~~none of ~~guaranteed investment certificates of $224,186 and $369,551, respectively, held in bank accounts.~~the Company’s receivables are impaired.

Liquidity Risk

Liquidity risk is the risk that the Company will ~~encounter difficulty in satisfying~~be unable to meet its financial obligations as they ~~become~~fall due. The ~~Company manages~~Company’s approach to managing its liquidity risk ~~by forecasting cash flows from operations and anticipating investing and financing activities. As at April 30, 2023,~~is to ensure, as far as possible, that it will have sufficient liquid funds to meet its liabilities when due.

At January 31, 2024, the Company ~~had working capital deficiency~~has $489,502 (October 31, 2023 - $1,008,507) of ~~$92,656 and~~ cash and cash equivalents to settle current liabilities of ~~$497,783 and is exposed to significant liquidity risk at this time. Furthermore,~~$429,162 (October 31, 2023 - $822,335). All payables classified as ~~the Company is in the exploration stage, it will periodically have to raise funds to continue operations and intends to raise further financing through equity offerings.~~

~~Accounts payable and accrued~~current liabilities are ~~non-interest-bearing and are typically settled on 30-day terms.~~due within one year.

Interest Rate Risk

The Company holds substantially all of its cash and cash equivalents in bank and demand deposit accounts with major financial institutions. The interest rates received on these balances may fluctuate with changes in economic conditions. Based on the average cash and cash equivalent balances during the ~~six~~three months ended ~~April 30, 2023,~~January 31, 2024, a 1% decrease in interest rates would have resulted in a reduction of approximately ~~$2,771~~$578 in interest income for the period.

Foreign Currency Exchange Risk

Certain purchases of labor, operating supplies and capital assets are denominated in $CDN, $MXN or other currencies. As a result, currency exchange fluctuations may impact the costs of the Company’s operations. Specifically, the appreciation of the $MXN or $CDN against the U.S. dollar may result in an increase in operating expenses and capital costs in U.S. dollar terms. The Company currently does not engage in any currency hedging activities.

Based on the net exposures as at ~~April 30, 2023,~~January 31, 2024, a 5% depreciation or appreciation of the $CDN and $MXN against the US dollar would result in an increase and decrease, respectively, of approximately ~~$5,000~~$9,000 in the Company’s net income.

NOTE 1416 – COMMITMENTS AND CONTINGENCIES

Compliance with Environmental Regulations

The Company’s exploration activities are subject to laws and regulations controlling not only the exploration and mining of mineral properties but also the effect of such activities on the environment. Compliance with such laws and regulations may necessitate additional capital outlays or affect the economics of a project, and cause changes or delays in the Company’s activities.

Property Concessions in Mexico

To properly maintain property concessions in Mexico, the Company is required to pay a semi-annual fee to the Mexican government and complete annual assessment work.

Royalty

The Company has agreed to pay a 2% net smelter return royalty on certain property concessions within the Sierra Mojada Property based on the revenue generated from production. Total payments under this royalty are limited to $6.875 million (the “Royalty”). To date, no royalties have been paid.

1517

Litigation and Claims

Mineros Norteños Case

On May 20, 2014, Mineros Norteños filed an action in the Local First Civil Court in the District of Morelos, State of Chihuahua, Mexico, against the Company’s subsidiary, Minera Metalin, claiming that Minera Metalin breached an agreement regarding the development of the Sierra Mojada Property. Mineros Norteños sought payment of the Royalty, including interest at a rate of 6% per annum since August 30, 2004, even though no revenue has been produced from the applicable mining concessions. It also sought payment of wages to the cooperative’s members since August 30, 2004, even though none of the individuals were hired or performed work for Minera Metalin under this agreement and Minera Metalin did not commit to hiring them. On January 19, 2015, the case was moved to the Third District Court (of federal jurisdiction). On October 4, 2017, the court ruled that Mineros Norteños was time barred from bringing the case. On October 19, 2017, Mineros Norteños appealed this ruling. On July 31, 2019, the Federal Appeals Court upheld the original ruling. This ruling was subsequently challenged by Mineros Norteños and on January 24, 2020, the Federal Circuit Court ruled that the Federal Appeals Court must consider additional factors in its ruling. In March 2020, the Federal Appeals Court upheld the original ruling after considering these additional factors. In August 2020, Mineros Norteños appealed this ruling, which appeal the Company timely responded and objected to on October 5, 2020. On March 26, 2021, the Federal Circuit Court issued a final and conclusive resolution, affirming the Federal Appeals Court decision. Despite the judgments in favour of the Company, Mineros Norteños has continued to block access to the facilities at Sierra Mojada since September 2019. The Company has filed criminal complaints with the State of Coahuila, federal and state authorities have been contacted to intervene and terminate the blockade, and the Company has attempted to negotiate with Mineros Norteños, without resolution to date. The Company has not accrued any amounts in its interim condensed ~~interim~~ consolidated financial statements with respect to this claim.

~~Legacy investment claim under the North American Free Trade Agreement (“NAFTA”)~~ICSID Arbitration

On March 2, 2023, the Company filed athe NAFTA Notice of Intent (Note 4). As is required by Article 1118 of NAFTA, the Company sought to settle this dispute with Mexico’s Directorate General of Foreign Investment to initiate a legacy NAFTA claim under Annex 14-C of the United States-Mexico-Canada Agreement to recover economic damages resulting from the illegal blockade of the Sierra Mojada Property by Mineros Norteños (Note 1).Mexico through consultations. On May 30, 2023, the Company attended a meeting with Mexican government officials in Mexico City, but, notwithstanding the Company’s good faith efforts to resolve the dispute amicably, no settlement ~~had been reached and~~was reached. Accordingly, the ~~Request in the legacy NAFTA claim will be~~Company filed a request for arbitration with the ICSID on ~~or before~~ June ~~30,~~28, 2023. On July 20, 2023, ICSID registered the request.

~~The Company has engaged Boies Schiller Flexner (UK) LLP as its legal advisers on the legacy NAFTA claim. To support the legacy NAFTA claim,~~As Arbitration proceedings are in early stages, the Company ~~engaged an arbitration consultant, who, upon a successful arbitration ruling, is~~cannot determine the likelihood of succeeding in collecting any amount, as such has not accrued any amounts in the interim condensed consolidated financial statements with respect to ~~receive an arbitration fee amounting to 6% of the net amount of the award by ICSID less all associated direct costs incurred by the Company.~~this claim.

Valdez Case

On February 15, 2016, Messrs. Jaime Valdez Farias and Maria Asuncion Perez Alonso (collectively, “Valdez”) filed an action before the Local First Civil Court of Torreon, State of Coahuila, Mexico, against the Company’s subsidiary, Minera Metalin, claiming that Minera Metalin had breached an agreement regarding the development of the Sierra Mojada Property. Valdez sought payment in the amount of $5.9 million for the alleged breach of the agreement. On April 28, 2016, Minera Metalin filed its response to the complaint, asserting various defenses, including that Minera Metalin terminated the agreement before the payment obligations arose and that certain conditions precedent to such payment obligations were never satisfied by Valdez. The Company and the Company’s Mexican legal counsel asserted all applicable defenses. In May 2017, a final judgment was entered finding for the Company, the defendant, acquitting the Company of all of the plaintiff’s claims and demands. However, due to a technicality in an early procedural act, Valdez was allowed to, and did, challenge the judgment before a local Appeals Court. On October 1, 2020, the Appeals Court entered a resolution overturning the previous judgment and entering a resolution in favor of Valdez in the amount of $5 million, plus court costs. In November 2020, the judgment of the Appeals Court was timely challenged by the Company by means of an “Amparo” lawsuit (Constitutional protection) before a Federal Circuit Court. In June 2021, the Federal Circuit Court ruled in favour of the plaintiff. The Company believes these judgments are contrary to applicable law. The plaintiff initiated proceedings to enforce the Appeals Court resolution, and the Company has offered a mining concession as a payment in full to terminate this controversy definitively. The Company believes the likelihood of the plaintiff succeeding in collecting any amount on this claim is remote, as such the Company has not accrued any amounts in its condensed interim consolidated financial statements with respect to this claim.

From time to time, the Company is involved in other disputes, claims, proceedings and legal actions arising in the ordinary course of business. The Company intends to vigorously defend all claims against the Company and pursue its full legal rights in cases where the Company has been harmed. Although the ultimate outcome of these proceedings cannot be accurately predicted due to the inherent uncertainty of litigation, in the opinion of management, based upon current information, no other currently pending or overtly threatened proceeding is expected to have a material adverse effect on the Company’s business, financial condition or results of operations.

1618

Arbitration Financing

On September 5, 2023, the Company entered into the LFA with Bench Walk (Note 5). Under the terms of the LFA, Bench Walk has agreed to fund the Company with up to $9.5 million to cover the Company’s legal, tribunal and external expert costs and defined corporate operating expenses associated with the Claim in relation to the international arbitration proceedings as a purchase of a contingent entitlement to damages. The Company continues to have complete control over the conduct of the international arbitration proceedings, insofar as the proceedings relate to the Company’s claims, and continues to have the right to settle with the respondent, discontinue proceedings, pursue the proceedings to trial and take any action the Company considers appropriate to enforce judgment.

The Company agreed that Bench Walk shall be entitled to receive a share of any proceeds arising from the Claim Proceeds of up to 3.5x Bench Walk’s capital outlay (or, if greater, a return of 1.0x Bench Walk’s capital outlay plus 30% of Claim Proceeds). The actual return to Bench Walk may be lower than the foregoing amounts depending on how quickly the Claim is resolved.

As security for Bench Walk’s entitlement to receive a share of the Claim Proceeds under the LFA, the Company granted to Bench Walk a security interest in the Claim Proceeds, the Claim, all documents of title pertaining to the Claim, rights under any appeal bond or similar instrument posted by any of the defendants in the Claim, and all proceeds of any of the foregoing.

Management Retention Agreement and Salaries

The Company has established a Management Retention Agreement (the “MRA”), which is a long-term incentive program to retain key personnel of the Company who have important historical information and knowledge to contribute with respect to the Arbitration. The MRA provides that if the Company is successful and the Company receives damages proceeds, 12% of the net proceeds will be directed to the MRA for distribution to its participants. Each participant must satisfy specific Arbitration related duties and if they do so, each participant may be entitled to a pre-defined percentage of the proceeds received by the MRA. The Toronto Stock Exchange (the “TSX”) has provided its conditional approval of the MRA dependent upon the MRA being approved by the Company’s disinterested shareholders at Silver Bull’s 2024 annual meeting of shareholders in April 2024.

Additionally, management of the Company has agreed to defer a portion of its salaries, as well as an annual bonuses granted, with the deferred amounts only being paid in the event that the Company is successful in its Arbitration proceedings and the Company having sufficient funds to pay the deferred amounts after discharging amounts owed to priority creditors, such as Bench Walk. Deferred amounts owed to management will accrue interest at a rate of 6% per annum, compounded annually. As of January 31, 2024, the deferred salary and bonus amounts, with accrued interest is approximately $196,000.

As the outcome of the Arbitration is not determinable as at January 31, 2024, no expense has been recorded in relation to the above.

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NOTE 1517 – SEGMENT INFORMATION

The Company operates in a single reportable segment: the exploration of mineral property interests. The Company has mineral property interests in Sierra Mojada, Mexico.

Geographic information is approximately as follows:

	For the Three Months Ended						For the Six Months Ended						For the Three Months Ended
	April 30,						April 30,						January 31,
	2023			2022			2023			2022			2024			2023
Net loss
Canada													$	(63,000	)	$	(190,000	)
Mexico														(130,000	)		(156,000	)
Net loss													$	(193,000	)	$	(346,000	)

Mexico		(55,000	)	$	(2,117,000	)	$	(211,000	)	$	(2,231,000	)
Canada		(423,000	)		(431,000	)		(613,000	)		(647,000	)
Net Loss		(478,000	)	$	(2,548,000	)	$	(824,000	)	$	(2,878,000	)

The following table details the allocation of assets included in the accompanying balance sheet at ~~April 30, 2023:~~January 31, 2024:

	Canada		Mexico		Total		Canada		Mexico		Total
Cash and cash equivalents	$	498,000	$	—	$	498,000	$	465,000	$	24,000	$	489,000
Other receivables		6,000		—		6,000		4,000		1,000		5,000
Accounts receivables								210,000		—		210,000
Prepaid expenses and deposits		30,000		5,000		35,000		29,000		5,000		34,000
Due from related party		3,000		—		3,000		63,000		—		63,000
Value-added tax receivable, net		—		135,000		135,000		—		107,000		107,000
Office and mining equipment, net		—		136,000		136,000		—		128,000		128,000
Property concessions		—		5,004,000		5,004,000		—		5,004,000		5,004,000
	$	537,000	$	5,280,000	$	5,817,000	$	771,000	$	5,269,000	$	6,040,000

17

The following table details the allocation of assets included in the accompanying balance sheet at October 31, ~~2022:~~2023:

	Canada		Mexico		Total		Canada		Mexico		Total
Cash and cash equivalents	$	876,000	$	11,000	$	887,000	$	985,000	$	23,000	$	1,008,000
Value-added tax receivable, net		—		127,000		127,000
Other receivables		3,000		—		3,000		6,000		—		6,000
Accounts receivables								140,000		—		140,000
Prepaid expenses and deposits		45,000		4,000		49,000		40,000		5,000		45,000
Due from related party		23,000		—		23,000		58,000		—		58,000
Value-added tax receivable, net								—		101,000		101,000
Office and mining equipment, net		—		144,000		144,000		—		131,000		131,000
Property concessions		—		5,020,000		5,020,000		—		5,004,000		5,004,000
	$	947,000	$	5,306,000	$	6,253,000	$	1,229,000	$	5,264,000	$	6,493,000

The Company has significant assets in Coahuila, Mexico. Although Mexico is generally considered economically stable, unanticipated events in Mexico, such as the blockade, can, and may in the future, disrupt the Company’s operations. The Mexican government does not require foreign entities to maintain cash reserves in Mexico.

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ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

~~ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.~~

When using the terms “Silver Bull,” or the “Company,” management is referring to Silver Bull Resources, Inc. and its subsidiaries, unless the context otherwise requires. Management has included technical terms important to an understanding of the Company’s business under “Glossary of Common Terms” in its Annual Report on Form 10-K for the fiscal year ended October 31, ~~2022.~~2023.

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the U.S. Private Securities Litigation Reform Act of 1995, and “forward-looking information” within the meaning of applicable Canadian securities legislation. Management uses words such as “anticipate,” “continue,” “likely,” “estimate,” “expect,” “may,” “will,” “projection,” “should,” “believe,” “potential,” “could,” or similar words suggesting future outcomes (including negative and grammatical variations) to identify forward-looking statements. Forward-looking statements include statements the Company makes regarding:

The sufficiency of the Company’s existing cash resources to enable it to continue operations for the next 12 months as a going concern;
The prospects of athe claim process, or award, under ~~NAFTA;~~the North American Free Trade Agreement (“NAFTA”);
The Funding Agreement (as defined in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section), and continued payment of legal, tribunal and external expert costs, and reimbursement of corporate operating expenses, under its terms;
Prospects of entering the development or production stage with respect to any of the Company’s projects;
Plans at the Sierra Mojada Project in ~~2023~~2024 and beyond;
Whether any part of the Sierra Mojada Project will ever be confirmed or converted into “proven or probable mineral reserves” as defined under Item 1300 of Regulation S-K;
The requirement of additional power supplies for the Sierra Mojada Project if a mining operation is determined to be feasible;
The Company’s ability to obtain and hold additional concessions in the Sierra Mojada Project areas;
Whether the Company will be required to obtain additional surface rights if a mining operation is determined to be feasible;
The possible impact on the Company’s operations of the blockade by a cooperative of miners on the Sierra Mojada Property;
The potential acquisition of additional mineral properties or property concessions;
Testing of the impact of the fine bubble flotation test work on the recovery of minerals and initial rough concentrate grade;
The impact of recent accounting pronouncements on financial position, results of operations or cash flows and disclosures;
The impact of changes to current state or federal laws and regulations on estimated capital expenditures, the economics of a particular project and/or activities;
The Company’s ability to raise additional capital and/or pursue additional strategic options, and the potential impact on the business, financial condition and results of operations of doing so or not;
The impact of changing foreign currency exchange rates on the Company’s financial condition;
The impairment of concessions and likelihood of further impairment of other long-lived assets;

1921

Whether using major financial institutions with high credit ratings mitigates credit risk;
The impact of changing economic conditions on interest rates;
Expectations regarding future recovery of value-added taxes (“VAT”) paid in Mexico; and
The merits of any claims in connection with, and the expected timing of any, ongoing legal proceedings.

These statements are based on certain assumptions and analyses made by us in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, and the actual results could differ from those expressed or implied in these forward-looking statements as a result of the factors described under “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, ~~2022,~~2023, including without limitation, risks associated with the following:

The ability to obtain additional financial resources on acceptable terms to (i) ~~fund the Company’s legacy NAFTA claim (ii)~~ maintain its property concessions in Mexico and ~~(iii)~~(ii) maintain general and administrative expenditures at acceptable levels;
The ability to acquire additional mineral properties or property concessions;
The ability of the Company to maintain its assets in Mexico given the performance of the Mexican government at various levels, including those described in PART II, ITEM 1A RISK FACTORS;
Worldwide economic and political events affecting (i) the market prices for silver, zinc, lead, copper and other minerals that may be found on the Company’s exploration properties (ii) interest rates and (iii) foreign currency exchange rates;
The amount and nature of future capital and exploration expenditures;
Volatility in the Company’s stock price;
The Company’s inability to obtain required permits;
Competitive factors, including exploration-related competition;
Timing of receipt and maintenance of government approvals;
Unanticipated title issues;
Changes in tax laws;
Changes in regulatory frameworks or regulations affecting our activities;
The Company’s ability to retain key management, consultants and experts necessary to successfully operate and grow the business; and
Political and economic instability in Mexico and other countries in which the Company conducts its business, and future potential actions of the governments in such countries with respect to nationalization of natural resources or other changes in mining or taxation policies.

22

These factors are not intended to represent a complete list of the general or specific factors that could affect the Company.

20

All forward-looking statements speak only as of the date made. All subsequent written and oral forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements. Except as required by law, management undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. Readers should not place undue reliance on these forward-looking statements.

Cautionary Note Regarding Exploration Stage Companies

Silver Bull is an exploration stage company and does not currently have any known reserves and cannot be expected to have reserves unless and until a feasibility study is completed for the Sierra Mojada concessions that shows proven and probable reserves. There can be no assurance that these concessions contain proven and probable reserves, and investors may lose their entire investment. See the sections titled “Risk Factors” in this Form 10-Q and in our Annual Report on Form 10-K for the fiscal year ended October 31, ~~2022.~~2023.

Business Overview

Silver Bull, incorporated in Nevada, is an exploration stage company, engaged in the business of mineral exploration, and its primary objective is to define sufficient mineral reserves on the Sierra Mojada Property to justify the development of a mechanized mining operation. The Company conducts its operations in Mexico through its wholly-owned Mexican subsidiaries, Minera Metalin S.A. de C.V. (“Minera Metalin”) and Minas de Coahuila SBR S.A. de C.V. On August 26, 2021, the wholly-owned Mexican subsidiary, Contratistas de Sierra Mojada S.A. de C.V. merged with and into Minera Metalin. As noted above, the Company has not established any reserves at the Sierra Mojada Property, and it is in the exploration stage, and may never enter the development or production stage.

On August 12, 2020, the Company entered into an option agreement (the “Beskauga Option Agreement”) with Copperbelt AG, a corporation existing under the laws of Switzerland (“Copperbelt Parent”), and Dostyk LLP, an entity existing under the laws of Kazakhstan and a wholly-owned subsidiary of Copperbelt Parent (the “Copperbelt Sub,” and together with Copperbelt Parent, “Copperbelt”), pursuant to which it had the exclusive right and option (the “Beskauga Option”) to acquire Copperbelt’s right, title and 100% interest in the Beskauga property located in Kazakhstan (the “Beskauga Property”), which consists of the Beskauga Main project (the “Beskauga Main Project”) and the Beskauga South project (the “Beskauga South Project,” and together the Beskauga Main Project, the “Beskauga Project”). The transaction contemplated by the Beskauga Option Agreement closed on January 26, 2021.

On February 5, 2021, Arras Minerals Corp. (“Arras”) was incorporated in British Columbia, Canada, as a wholly-owned subsidiary of Silver Bull. On March 19, 2021, pursuant to an asset purchase agreement with Arras, the Company transferred its right, title and interest in and to the Beskauga Option Agreement, among other things, to Arras in exchange for 36,000,000 common shares of Arras. On September 24, 2021, Silver Bull distributed to its shareholders one Arras common share for each Silver Bull share held by such shareholders, or 34,547,838 Arras common shares in total (the “Distribution”), and Arras became a stand-alone company. Upon completion of the distribution, the Company retained 1,452,162 Arras common shares as a strategic investment, and Arras became a stand-alone company.

In December 2021 and June 2022, the Company sold 600,000 and 852,262 common shares of Arras at a price of $CDN 1.00 and $CDN 1.50 per shares, respectively. The Company has no interest in Arras as of April 30, 2023.

On April 23, 2023, Nomad Minerals Ltd. (“Nomad Minerals"), a wholly-owned subsidiary of the Company, was incorporated in British Columbia, Canada. On April 28, 2023, Nomad Metals Limited was incorporated at Astana International Financial Centre in Astana, Republic of Kazakhstan, as a wholly-owned subsidiary of Nomad Minerals.

On June 28, 2023, the Company filed a request for arbitration (the “Arbitration”) before the World Bank’s International Centre for Settlement of Investment Disputes (“ICSID”) against the United Mexican States (“Mexico”) under the United States-Mexico-Canada Agreement (the “USMCA”) and NAFTA, (together with the USMCA, the “Treaties”). Since the arbitration request, the Arbitration has become the Company’s core focus. The Arbitration seeks compensation for the losses resulting from the Mexican State’s wrongful conduct and its breaches of the Treaties’ protections, including expropriation, breach of the fair and equitable treatment standard, discrimination, and other unlawful treatment in respect of the Sierra Mojada Property. If successful in the Arbitration, the Company will take appropriate steps to enforce and recover such an arbitral award (“Award”). The execution and enforcement of an Award may present material challenges and take a number of years.

Silver Bull’s principal office is located at 777 Dunsmuir Street, Suite 1605 Vancouver, BC, Canada V7Y 1K4, and the telephone number is 604-687-5800.

~~Recent Developments~~Properties Concessions and Outlook

~~Commencement~~Sierra Mojada Property

The focus of the ~~Legacy NAFTA Claim~~

~~On March 2, 2023,~~Company for the 2024 calendar year will be to continue with the Arbitration process. If the blockade and the Arbitration proceedings are resolved, any continued exploration of the Sierra Mojada Property ultimately may require the Company ~~filed the NAFTA Notice~~to raise additional capital, identify other sources of ~~Intent.~~funding or identify a strategic partner, or other strategic alternatives. The Company ~~has been unable~~is also continuing to ~~access the project since the illegal blockade commenced in September 2019. Despite numerous demands~~seek out other exploration projects for potential development and ~~requests for action by the Company, Mexican governmental agencies have allowed this unlawful behaviour to continue and, as such, failed to protect the Company’s~~ investment. ~~Silver Bull will be seeking to recover no less than US$178 million in damages that it has suffered as a result of Mexico’s breach of its NAFTA obligations.~~

On May 30, 2023, the Company attended a meeting with Mexican government officials in Mexico City, no settlement had been reached and the Request in the legacy NAFTA claim will be filed with the ICSID on or before June 30, 2023.

2123

~~Properties Concessions and Outlook~~

~~Sierra Mojada Property~~

~~The focus of the Company for the remainder of the 2023 calendar year is to continue the legacy NAFTA claim process in relation to the blockade at the Sierra Mojada Property.~~

~~Management and Board Changes~~

On April 25, 2023, Mr. Darren Klinck ceased serving as a President of the Company. Mr. Tim Barry (the Company’s Chief Executive Officer) was appointed the Company’s President, replacing Mr. Klinck.

On March 2, 2023, Mr. William Matlack was appointed to the Board of Directors as an independent director. Mr. Matlack is a veteran geologist over a 20-year career in the mining industry, working primarily with Santa Fe Pacific Gold Corp. (now Newmont Mining) and Gold Fields. Mr. Matlack was involved in the exploration and development of several world-class gold discoveries in Nevada and California. Later, he was an equity research analyst in metals & mining with Citigroup and BMO Capital Markets, and an investment banker in metals & mining with Scarsdale Equities. From 2012 to 2018, he was interim CEO and a director of Klondex Mines Limited during its transformation from an explorer to gold producer in Nevada. Mr. Matlack has served as a director of Timberline Resources Corp. since October 2019.

Results of Operations

Three Months Ended ~~April 30,~~January 31, 2024 and January 31, 2023 ~~and April 30, 2022~~

For the three months ended ~~April 30, 2023,~~January 31, 2024, the Company ~~had~~recorded a net loss of ~~$478,000,~~$193,000, or approximately ~~$0.01~~$nil per share, compared to a net loss of ~~$2,548,000,~~$346,000, or approximately ~~$0.07~~$0.01 per share, during the comparable period last year. The ~~$2,070,000~~$153,000 decrease in net loss was primarily due to a ~~$2,075,000~~$77,000 decrease in exploration and property holding costs ~~(which was significantly the result of the $2,058,000 goodwill impairment during the comparable period last year)~~and a $122,000 decrease in administrative expenses, which was partially offset by a ~~$17,000 decrease~~$43,000 in ~~exploration and property costs~~other expense compared to a $4,000 in other income in the ~~comparable~~same period last year as described below.

Exploration and Property Holding Costs

Exploration and property holding costs decreased ~~$2,075,000~~$77,000 to ~~$42,000~~$59,000 for the three months ended ~~April 30, 2023,~~January 31, 2024, compared to ~~$2,117,000~~$136,000 for the comparable period last year. This decrease was mainly due to a $75,000 reimbursement from Bench Walk pursuant to the ~~result of~~litigation Funding Agreement in the three months ended January 31, 2024 and a ~~$2,058,000 goodwill~~$16,000 concessions’ impairment in the ~~comparable~~same period last ~~year which~~year. As the Funding Agreement was ~~partially offset by a $17,000 decrease~~entered into in ~~exploration and holding costs.~~September 2023, there is no comparable amount in the same period last year.

General and Administrative Expenses

~~The Company recorded general~~General and administrative expenses ~~of $421,000 for~~decreased by $122,000 to $90,000 in the three months ended ~~April 30, 2023 as compared to $417,000 for~~January 31, 2024 from $212,000 in the ~~comparable~~same period last year. The $4,000 increase was mainly the result of a $81,000 decrease in personnel costs, a $30,000 decrease in office and administrative costs, a $44,000 decrease in directors’ fees, which was offset by a $159,000 increase in professional servicesyear as described below.

Stock-based compensation was a factor in the fluctuations in general and administrative expenses. The Company recorded ~~a $4,000 recovery of~~$60,000 in stock-based compensation ~~as the result of the resignation of the Company’s President (as described in the “Management and Board Changes” section)~~ included in general and administrative ~~expenses~~expense for the three months ended ~~April 30, 2023,~~January 31, 2024 compared to ~~$191,000~~$53,000 for ~~the comparable period last year as the result of stock options granted to our employees, directors and advisors in the three months ended April 30, 2022.~~

22

Personnel costs decreased $81,000 to $107,000 for the three months ended April 30, 2023 as compared to $188,000 for the comparable period last year. This decrease was mainly due to a decrease in stock-based compensation expenses in the three months ended April 30, 2023 from $151,000 in the comparable period last year as a result of stock options vesting in the three months ended April 30, 2023 having a lower fair value than stock options vesting in the comparable period last year, which was partially offset by a $68,000 increase in employees’ bonus in the three months ended April 30, 2023..

~~Office~~were granted and ~~administrative~~vested to employees, directors and consultants.

Personnel costs ~~decreased $30,000~~increased $10,000 to ~~$66,000~~$99,000 for the three months ended ~~April 30, 2023~~January 31, 2024 as compared to ~~$96,000 for the comparable period last year. This decrease was primarily due to decreased investor relations activities and insurance.~~

~~Professional fees increased $123,000 to $219,000 for the three months ended April 30, 2023 compared to $60,000~~$89,000 for the comparable period last year. This increase iswas mainly due to ~~arbitration related costs incurred~~a $11,000 increase in ~~relation~~salaries due to revised agreements with the Company’s management in September 2023 and a $4,000 increase in accrued vacation, which was offset by a $4,000 decrease in stock-based compensation compared to the ~~legacy NAFTA claim (as described in the “Recent Developments” section).~~same period last year.

~~Directors’ fees decreased $44,000~~Office and administrative expenses increased by $28,000 to ~~$26,000~~$63,000 for the three months ended ~~April 30, 2023 as~~January 31, 2024 compared to ~~$70,000~~$35,000 for the comparable period last year. This ~~decrease~~increase was primarily due to ~~decrease in the stock-based compensation expense compared~~increased travel costs.

Professional fees increased $23,000 to ~~the comparable period last year as a result of stock options vesting in the three months ended April 30, 2023 having a lower fair value than stock options vesting in the comparable period last year.~~

~~A provision for uncollectible VAT in the amount of $2,000 was recorded~~$70,000 for the three months ended ~~April 30, 2023, which~~January 31, 2024 compared to $47,000 for the comparable period last year. This increase was ~~similar~~mainly due to increases in accounting fees, legal fees and other professional fees related to the ~~$3,000~~Company’s 2024 annual meeting of shareholders.

Directors’ fees increased $13,000 to $47,000 for the three months ended January 31, 2024 as compared to $34,000 for the comparable period last year. This increase was primarily due to a $12,000 increase in ~~such costs~~stock-based compensation compared to the same period last year.

The Company recorded a $6,000 provision for uncollectible VAT for the three months ended January 31, 2024 as compared to a $8,000 provision for uncollectible VAT in the comparable period last year. The allowance for uncollectible ~~taxes~~VAT was estimated by management based upon a number of factors, including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and estimated net recovery after commissions.

During the three months ended January 31, 2024, the Company recorded a contra expense of $195,000 in the general and administrative expenses which is comprised of funds from the Litigation Funding Agreement. Bench Walk is funding the Company’s legal, tribunal and external expert costs and defined corporate operating expenses. This is a nonrecourse agreement, and the Company has no obligation to repay any funds received under the agreement. In the event of a favorable outcome, Bench Walk would recover disbursed funding as part of their investment return. As the Funding Agreement was entered into in September 2023, there is no comparable amount in the same period last year.

24

During the three months ended January 31, 2024, the Arbitration lawyers incurred $205,300 in legal costs, all of which were paid by Bench Walk directly.

Other ~~Expenses~~(Expenses) Income

~~Other~~The Company recorded other expenses of ~~$16,000 were incurred~~$43,000 for the three months ended ~~April 30, 2023~~January 31, 2024 as compared to other ~~expenses~~income of ~~$14,000~~$4,000 for the comparable period last year. The significant factor contributing to other expenses ~~was $19,000 other costs related to the certain years’ VAT and corporate taxes disputes with Mexican tax authorities for~~in the three months ended ~~April 30, 2023.~~January 31, 2024 was a $67,000 expense from change in fair value of the warrant derivative liability, which was offset by $3,000 interest income, a $6,000 foreign currency transaction income and a $15,000 in other income on partial forgiveness of the Company’s Canada Emergency Business Account (“CEBA”) loan. The $67,000 expense from change in fair value of the warrant derivative liability was due to an increase in the fair value of warrants with a $CDN exercise price from October 31, 2023 to January 31, 2024. The significant ~~factor~~factors contributing to other ~~expenses~~income for the comparable period last year was ~~a $14,000 foreign currency transaction loss.~~

~~Six Months Ended April 30, 2023 and April 30, 2022~~

For the six months ended April 30, 2023, the Company had a net loss of $824,000, or approximately $0.02 per share, compared to a net loss of $2,878,000, or approximately $0.08 per share, during the comparable period last year. The $2,054,000 decrease$6,000 in ~~net loss was primarily due to a $2,058,000 goodwill impairment in exploration and property holding costs in the comparable period last year as described below.~~

~~Exploration and Property Holding Costs~~

Exploration and property holding costs decreased $2,053,000 to $178,000 for the six months ended April 30, 2023, compared to $2,231,000 for the comparable period last year. This decrease was mainly the result of a $2,058,000 goodwill impairment in the comparable period last year.

~~General and Administrative Expenses~~

~~The Company recorded general and administrative expenses of $633,000~~ for the six months ended April 30, 2023 as compared to $628,000 for the comparable period last year. The $5,000 increase was mainly the result of a $147,000 increase in professional services, which were partially offset by a $34,000 decrease in personnel costs, a $31,000 decrease in office and administrative costs and a $29,000 decrease in directors’ fees as described below.

Stock-based compensation was a factor in the fluctuations in general and administrative expenses. Overall stock-based compensation included in general and administrative expense decreased to $49,000 for the six months ended April 30, 2023 from $191,000 for the comparable period last year. This was mainly due to stock options granted to our employees, directors and advisors in the comparable period last year.

22

Personnel costs decreased $84,000 to $196,000 for the six months ended April 30, 2023 as compared to $280,000 for the comparable period last year. This decrease was mainly due to a $110,000 decrease in stock-based compensation expenses in the six months ended April 30, 2023 from $143,000 in the comparable period last year as a result of stock options vesting in the six months ended April 30, 2022 having a higher fair value than stock options vesting in the comparable period last year, which were partially offset by a $25,000 increase in employees’ salaries and bonus.

Office and administrative costs decreased $31,000 to $100,000 for the six months ended April 30, 2023 as compared to $131,000 for the comparable period last year. This decrease was primarily due to decreased investor relations activities and insurance.

Professional fees increased $147,000 to $266,000 for the six months ended April 30, 2023 compared to $119,000 for the comparable period last year. This increase was mainly due to arbitration related costs incurred in relation to the legacy NAFTA claim (as described in the “Recent Developments” section).

Directors’ fees decreased $29,000 to $60,000 for the six months ended April 30, 2023 as compared to $89,000 for the comparable period last year. This decrease was primarily due to a $31,000 decrease the stock-based compensation expense to $17,000 in the six months ended April 30, 2023 from $48,000 in the comparable period last year as a result of stock options vesting in the six months ended April 30, 2023 having a lower fair value than stock options vesting in the comparable period last year.

The Company recorded a $10,000 provision for uncollectible VAT for the six months ended April 30, 2023 as compared to a $9,000 provision for uncollectible VAT in the comparable period last year. The allowance for uncollectible taxes was estimated by management based upon a number of factors, including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and estimated net recovery after commissions.

~~Other Expenses~~

Other expenses of $12,000 were incurred for the six months ended April 30, 2023 as compared to other expenses of $18,000 for the comparable period last year. The significant factor contributing to other expenses was $19,000 other costs related to the certain years’ VAT and corporate taxes disputes with Mexican tax authorities for the six months ended April 30, 2023, which was offset by a $13,000 interest income. ~~The significant factor contributing to other expenses for the comparable period last year was a $18,000 foreign currency transaction loss.~~

Material Changes in Financial Condition; Liquidity and Capital Resources

Cash Flows

During the ~~six~~three months ended ~~April 30, 2023,~~January 31, 2024, cash and cash equivalents were primarily utilized to fund general and administrative ~~expenses and exploration activities at the Sierra Mojada Property.~~expenses. As a result of the ~~exploration activities and~~ general and administrative expenses, cash and cash equivalents decreased from ~~$887,000~~$1,009,000 at October 31, ~~2022~~2023 to ~~$498,000~~$490,000 at ~~April 30, 2023.~~January 31, 2024.

Cash flows used in operating activities for the ~~six~~three months ended ~~April 30, 2023~~January 31, 2024 were ~~$389,000,~~$490,000, as compared to ~~$569,000~~$141,000 for the comparable period in ~~2022.~~2023. This ~~decrease~~increase was mainly due to the timing of certain ~~payments.~~payments and the timing of the accounts receivable collection.

Cash flows provided by investing activities for the ~~six~~three months ended ~~April 30,~~January 31, 2024 and 2023 were $nil. ~~Cash flows provided by investing activities for the six months ended April 30, 2022 were proceeds of $470,000 from the sale of 600,000 Arras common shares at a price of $CDN 1.00 per share.~~

Cash flows ~~provided~~used by financing activities for the ~~six~~three months ended ~~April 30,~~January 31, 2024 were $29,000 as the Company repaid the payable portion of the CEBA loan. Cash flows used by financing activities for the three months ended January 31, 2023 ~~and 2022~~ were $nil.

23

Capital Resources

As of ~~April 30, 2023,~~January 31, 2024, the Company had cash and cash equivalents of ~~$498,000,~~$490,000, as compared to cash and cash equivalents of ~~$887,000~~$1,009,000 as of October 31, ~~2022.~~2023. The decrease in liquidity and working capital were primarily the result of the ~~exploration activities at the Sierra Mojada Property and~~net repayment of accounts payable of $430,000, general and administrative ~~expenses.~~expenses and payments, which were partially offset by the Arbitration funding during the three months ended January 31, 2024.

Since the Company’s inception in November 1993, it has not generated revenue and has incurred an accumulated deficit of ~~$138,218,000.~~$138,838,000. Accordingly, ~~Silver Bull~~the Company has not generated cash flows from operations, and since inception has relied primarily upon proceeds from private placements and registered direct offerings of ~~the Company’s~~its equity securities, warrant exercises, the sale of investments and funding from Bench Walk and South32 as the primary sources of financing to fund ~~our operations. Based~~operations

Despite the arbitration finance in place, based on the Company’s ~~limited~~constrained cash and cash equivalents, and history of losses, there ~~is substantial doubt as~~exists a certain level of uncertainty regarding the company’s ability to ~~whether~~sustain its ~~existing cash resources are sufficient to enable it to continue operations for~~operation over the next 12 months as a going concern. While the Company entered into a Funding Agreement aimed at covering arbitration legal costs and certain other costs, supplemental fundraising will be essential to meet more extensive operational demands. Management plans to pursue possible financing and strategic options, including, but not limited to, obtaining additional equity financing, and the ~~exercise~~exercising of warrants by warrantholders. Management has successfully pursued these options previously and believes that they alleviate the substantial doubt that the Company can continue its operations for the next 12 months as a going concern. However, there is no assurance that the Company will be successful in pursuing these plans.

Any future additional financing in the near term will likely be in the form of the issuance of equity securities, which will result in dilution to Silver Bull’s existing shareholders. Moreover, the Company may incur significant fees and expenses in the pursuit of a financing or other strategic transaction, which will increase the rate at which its cash and cash equivalents are depleted.

25

Capital Requirements and Liquidity; Need for Additional Funding

The Company’s management and board of directors monitor overall costs, expenses, and financial resources and, if necessary, will adjust planned operational expenditures in an attempt to ensure that the Company has sufficient operating capital. Management continues to evaluate the Company’s costs and planned expenditures, including for the Sierra Mojada Property, as discussed below.

The aforementioned ~~legacy NAFTA claim~~Arbitration process will require the Company to incur significant expense and devote significant resources. ~~Outcomes in legacy NAFTA~~The outcome of the Arbitration claim and the process for recovering funds, even if there is a successful outcome, ~~in legacy NAFTA claim,~~ can be lengthy and unpredictable. ~~Furthermore, there~~

If the blockade is ~~a risk that~~resolved, and exploration of the Sierra Mojada project is restarted, the Company will ~~be unable to secure the necessary funding to advance its claim.~~

~~In January 2023, Silver Bull’s board~~require significant amounts of directors approved a calendar year 2023 budget of $0.3 million for the Sierra Mojada Property and $0.7 million for general and administrative expenses for calendar year 2022. The focus of the Company’s 2023 calendar year program at the Sierra Mojada Property is to maintain its property concessions in Mexico.additional capital. As of ~~May 31, 2023,~~February 29, 2024, the Company had approximately ~~$0.35~~$0.4 million in cash and cash equivalents. ~~To maintain~~The continued exploration of the Sierra Mojada Property ~~and the legacy NAFTA claim~~ ultimately ~~will~~would require the Company to raise additional capital, identify other sources of funding, or identify a strategic ~~partner.~~partner or other strategic alternatives.

~~Management~~The Company will continue to evaluate ~~the Company’s~~its ability to obtain additional financial resources, and will attempt to reduce or limit expenditures on the Sierra Mojada Property as well as general and administrative costs if it is determined that additional financial resources are unavailable or available on terms that ~~management determine~~it determines are unacceptable. However, it may not be possible to reduce costs, and even if ~~management~~the Company is successful in reducing costs, ~~the Company~~it still may not be able to continue operations for the next 12 months as a going concern. Debt or equity financing may not be available on acceptable terms, if at all. Equity financing, if available, may result in substantial dilution to existing stockholders. If the Company is unable to fund future operations by ~~obtaining additional~~way of financings, including public or private offerings of equity or debt securities, its business, financial ~~resources, including an equity offering or other strategic transaction, management do not expect to have sufficient available cash~~condition and ~~cash equivalents to continue the Company’s~~results of operations ~~for the next 12 months as a going concern.~~will be adversely impacted.

Critical Accounting Policies

The critical accounting policies are defined in ~~our~~the Company’s Annual Report on Form 10-K for the year ended October 31, ~~2022~~2023 filed with the SEC on January 26, ~~2023.~~2024.

Other recent accounting pronouncements issued by the ~~FASB~~Financial Accounting Standards Board (including its Emerging Issues Task Force) and the SEC did not or are not expected to have a material impact on the Company’s present or future consolidated financial statements.

24

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 4.

CONTROLS AND PROCEDURES.

(a)

Evaluation of Disclosure Controls and Procedures.

Under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, management has carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of April 30, 2023. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective as of ~~April 30, 2023.~~January 31, 2024.

The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed in its reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in its reports filed or submitted under the Exchange Act is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

26

(b)

Changes in Internal Control over Financial Reporting

During the quarter ended ~~April 30, 2023,~~January 31, 2024, there have not been any changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

See Note 1416 – Commitments and Contingencies to the Company’s financial statements (Part I, Item 1 of this Quarterly Report on Form 10-Q) for information regarding legal proceedings in which it is involved.

ITEM 1A.

RISK FACTORS.

~~The risk factor outlined below should be considered along with~~There have been no material changes from the risk factors ~~disclosed~~included in the Company’s Annual Report on Form 10-K for the year ended October 31, ~~2022.~~2023.

~~The Company has litigation risk with respect to its legacy NAFTA claim under the United States-Mexico-Canada Agreement and other possible proceedings.~~

The Company is currently, and may in the future become, subject to litigation, arbitration or proceedings with other parties. On March 2, 2023, the Company filed a Notice of Intent with Mexico’s Directorate General of Foreign Investment to initiate a legacy NAFTA claim under Annex 14-C of the United States-Mexico-Canada Agreement to recover economic damages resulting from the illegal blockade of the Sierra Mojada Project by Mineros Norteños. On or before June 30, 2023, the Company will file the Request in the legacy NAFTA claim with the ICSID. If decided adversely to us, these legal proceedings, or others that could be brought against the Company in the future, could have a material adverse effect on our financial position or prospects. While the Company believes its legacy NAFTA claim is valid, litigation matters are inherently uncertain and there is no guarantee that the Company will be successful in its assessment, or that the likely outcome of this matter will be consistent with the ultimate resolution of the matter. The legacy NAFTA claim process will require the Company to incur significant expense, devote significant resources, and may generate adverse publicity, which could materially, and possibly adversely, affect its business. The Company’s inability to enforce its rights and the enforcement of rights on a prejudicial basis by foreign courts or international arbitral tribunals could have an adverse effect on the Company’s outlook. Outcomes in the legacy NAFTA claim and the process for recovering funds even if there is a successful outcome in the legacy NAFTA claim can be lengthy and unpredictable. Furthermore, there is a risk that the Company will be unable to secure the necessary funding to advance its claim.

Property concessions – October 31, 2022	$	5,019,927
Impairment		(15,541	)
Property concessions – April 30, 2023	$	5,004,386

Property concessions – October 31, 2022	$	5,019,927
Impairment		(15,541	)
Property concessions – October 31, 2023		5,004,386
Property concessions – January 31, 2024	$	5,004,386

	SILVER BULL RESOURCES, INC.


Dated: ~~June 13, 2023~~March 15, 2024	By:	/s/ Timothy Barry
		Timothy Barry
		President and Chief Executive Officer
		(Principal Executive Officer)
Dated: ~~June 13, 2023~~March 15, 2024	By:	/s/ Christopher Richards
		Christopher Richards
		Chief Financial Officer
		~~(Principal~~(Principal Financial Officer and Principal Accounting Officer)

	April 30, 2023			October 31, 2022
		(Unaudited)
ASSETS

CURRENT ASSETS
Cash and cash equivalents (Note 13)	$	497,783		$	886,728
Other receivables		6,287			2,834
Prepaid expenses and deposits		35,411			49,537
Due from related party (Note 5)		2,428			23,196
Total Current Assets		541,909			962,295


Value-added tax receivable, net of allowance for uncollectible taxes of $506,311 and $449,219, respectively (Note 6)		134,639			127,036
Office and mining equipment, net (Note 7)		136,230			143,568
Property concessions (Note 8)		5,004,386			5,019,927
TOTAL ASSETS	$	5,817,164		$	6,252,826

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable	$	313,844		$	159,585
Accrued liabilities and expenses		275,032			179,607
Income tax payable		1,500			3,000
Loan payable (Note 9)		44,189			—
Total Current Liabilities		634,565			342,192

Loan payable (Note 9)		—			43,959
TOTAL LIABILITIES	$	634,565		$	386,151

COMMITMENTS AND CONTINGENCIES (Note 14)

STOCKHOLDERS’ EQUITY (Notes 4, 10, 11 and 12)
Common stock, $0.01 par value; 150,000,000 shares authorized, 35,680,652 and 35,055,652 shares issued and outstanding, respectively		2,424,665			2,418,415
Additional paid-in capital		140,883,647			140,750,310
Accumulated deficit		(138,217,961	)		(137,394,298	)
Other comprehensive income		92,248			92,248
Total Stockholders’ Equity		5,182,599			5,866,675

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,817,164		$	6,252,826

	Three Months Ended April 30,						Six Months Ended April 30,
	2023			2022			2023			2022

REVENUES	$	—		$	—		$	—		$	—

EXPLORATION AND PROPERTY HOLDING COSTS
Exploration and property holding costs		38,259			53,493			155,465			161,781
Depreciation (Note 7)		3,667			5,483			7,338			10,726
Concessions impairment (Note 8)		—			—			15,541			—
Goodwill impairment		—			2,058,031			—			2,058,031
TOTAL EXPLORATION AND PROPERTY HOLDING COSTS		41,926			2,117,007			178,344			2,230,538

GENERAL AND ADMINISTRATIVE EXPENSES
Personnel		106,906			187,516			195,680			279,651
Office and administrative		65,919			96,374			100,431			131,222
Professional services		219,283			59,805			266,247			118,552
Directors’ fees		26,324			69,954			60,150			88,870
Provision for uncollectible value-added taxes (Note 6)		2,108			2,867			10,434			9,302
TOTAL GENERAL AND ADMINISTRATIVE EXPENSES		420,540			416,516			632,942			627,597

LOSS FROM OPERATIONS		(462,466	)		(2,533,523	)		(811,286	)		(2,858,135	)

OTHER EXPENSES
Interest income		6,297			5			13,091			11
Foreign currency transaction loss		(2,554	)		(13,962	)		(5,396	)		(18,355	)
Other costs (Note 13)		(19,355	)		—			(19,355	)		—
TOTAL OTHER EXPENSES		(15,612	)		(13,957	)		(11,660	)		(18,344	)

LOSS BEFORE INCOME TAXES		(478,078	)		(2,547,480	)		(822,946	)		(2,876,479	)

INCOME TAX RECOVERY (EXPENSE)		283			(500	)		(717	)		(1,500	)

NET AND COMPREHENSIVE LOSS		(477,795	)		(2,547,980	)		(823,663	)		(2,877,979	)

BASIC AND DILUTED NET LOSS PER COMMON SHARE	$	(0.01	)	$	(0.07	)	$	(0.02	)	$	(0.08	)
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES		35,420,820			34,958,654			35,235,210			34,749,841

	Common Stock
	Number of Shares		Amount		Additional Paid-in Capital		Accumulated Deficit			Other Comprehensive Income		Total Equity

Six months ended April 30, 2023
Balance, October 31, 2022		35,055,652	$	2,418,415	$	140,750,310	$	(137,394,298	)	$	92,248	$	5,866,675
Issuance of common stock as follows:
- For compensation at $0.14 per share (Note 10)		625,000		6,250		82,161		—			—		88,411
Stock option activity as follows:
- Stock-based compensation for options issued to directors, officers, employees, and advisors (Note 11)		—		—		51,176		—			—		51,176
Net loss for the six-month period ended April 30, 2023		—		—		—		(823,663	)		—		(823,663	)
Balance, April 30, 2023		35,680,652	$	2,424,665	$	140,883,647	$	(138,217,961	)	$	92,248	$	5,182,599

	Six Months Ended April 30,
	2023		2022

SUPPLEMENTAL CASH FLOW DISCLOSURES:

Income taxes paid	$	2,220	$	1,803
Interest paid		—	$	—

Allowance for uncollectible VAT – October 31, 2022	$	449,219
Provision for VAT receivable allowance		10,434
Foreign currency translation adjustment		46,658
Allowance for uncollectible VAT – April 30, 2023	$	506,311

Loan payable – October 31, 2022	$	43,959
Foreign currency translation adjustment		230
Loan payable – April 30, 2023	$	44,189

Loan payable – October 31, 2023	$	43,256
Repayment		(29,438	)
Foreign currency translation adjustment		901
Other income		(14,719	)
Loan payable – January 31, 2024	$	—