{"url_path":"/sec/nexm/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.**","topic":"sec","document":{"doc_type":"10-K/A","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/795800/0001493152-26-022760-index.html","accession_number":"0001493152-26-022760","cik":"0000795800","ticker":"NEXM","issuer_name":"NexMetals Mining Corp.","edgar_url":"https://www.sec.gov/Archives/edgar/data/795800/0001493152-26-022760-index.html","primary_entity_key":"0000795800","primary_entity_name":"NexMetals Mining Corp."},"word_count":15605,"has_tables":true,"body_markdown":"**Item\n8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.**\n\n \n\nThe\naudited consolidated financial statements of NexMetals Mining Corp. as of December 31, 2025, and 2024 are appended to this Report beginning\non page F-1.\n\n** **\n\n**Consolidated\nFinancial Statements**\n\n \n\n**For\nthe years ended December 31, 2025, and 2024**\n\n \n\n*In\naccordance with generally accepted accounting principles in the United States and pursuant to the rules and regulations of the U.S. Securities\nand Exchange Commission and stated in Canadian dollars, unless otherwise indicated*\n\n \n\n**INDEX**\n\n \n\n[Independent\nAuditor’s Report](#sq_001) (PCAOB ID 1930)\n\n \n\nConsolidated\nFinancial Statements\n\n \n\n \n■\n[Consolidated\nBalance Sheets](#sq_002)\n\n \n \n \n\n \n■\n[Consolidated\nStatements of Operations and Comprehensive Loss](#sq_003)\n\n \n \n \n\n \n■\n[Consolidated Statements of Changes in Shareholders’ Equity (Deficiency)](#sq_004)\n\n \n \n \n\n \n■\n[Consolidated\nStatements of Cash Flows](#sq_005)\n\n \n \n \n\n \n■\n[Notes\nto the Consolidated Financial Statements](#sq_006)\n\n \n\nF-1\n\n \n\n \n\n \n\nREPORT\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM\n\n \n\nTo\nthe Board of Directors and\n\nShareholders\nof NexMetals Mining Corp.\n\n \n\n**Opinion\non the Consolidated Financial Statements**\n\n \n\nWe\nhave audited the accompanying consolidated balance sheets of NexMetals Mining Corp. (Formerly Premium Resources Ltd.) (the “Company”)\nas at December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive loss, changes in shareholders’\nequity (deficiency), and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes (collectively\nreferred to as the “consolidated financial statements”).\n\n \n\nIn\nour opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the\nCompany as at December 31, 2025 and 2024, and the results of its consolidated operations and its consolidated cash flows for each of\nthe years in the two-year period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States\nof America.\n\n \n\n**Material\nUncertainty Related to Going Concern**\n\n \n\nThe\naccompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed\nin Note 1 to the consolidated financial statements, the Company has incurred recurring net losses and has not generated profitable operations\nfrom its resource activities. Which raises substantial doubt about its ability to continue as a going concern. Management’s plans in\nregard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might\nresult from the outcome of this uncertainty.\n\n \n\n**Basis\nfor Opinion**\n\n \n\nThese\nconsolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion\non the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public\nCompany Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company\nin accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission\nand the PCAOB.\n\n \n\nWe\nconducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.\nThe Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part\nof our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing\nan opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur\naudits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether\ndue to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence\nregarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles\nused and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.\nWe believe that our audits provide a reasonable basis for our opinion.\n\n** **\n\nF-2\n\n \n\n** **\n\n**Critical\nAudit Matters**\n\n \n\nThe\ncritical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements\nthat were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are\nmaterial to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The\ncommunication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole,\nand we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the\naccounts or disclosures to which they relate.\n\n* *\n\n*Going\nConcern*\n\n \n\n*Critical\nAudit Matter Description*\n\n \n\nAs\ndescribed in Note 1, the Company, being in the exploration stage, is subject to risks and challenges similar to companies in a comparable\nstage. These risks include the challenges of securing adequate capital for exploration and operational risks inherent in the mining industry,\nand global economic and metal price volatility and there is no assurance management will be successful in its endeavors. The ability\nof the Company to continue operations as a going concern is ultimately dependent upon achieving profitable operations and its ability\nto obtain adequate financing. To date, the Company has not generated profitable operations from its resource activities and will need\nto invest additional funds in carrying out its planned exploration and operational activities. Management has prepared future cash flow\nforecasts, which involves judgement and estimation of key variables, such as planned financing and capital and operational expenditures.\nFuture economic conditions and effects of key events subsequent to the year end, such as debt and equity financing, also impacted management’s\njudgements and estimates. We identified the Company’s ability to continue as a going concern as a critical audit matter because auditing\nthe Company’s going concern assessment is complex and involves a high degree of auditor judgment to assess the reasonableness of the\ncash flow forecasts, planned refinancing actions and other assumptions used in the Company’s going concern analysis. The Company’s ability\nto execute the planned refinancing actions are especially judgmental given that the global financial markets and economic conditions\nhave been, volatile. This matter is also described in the “Material Uncertainty Related to Going Concern” section of our report.\n\n \n\n*Audit\nResponse*\n\n \n\nWe\nresponded to this matter by performing procedures over management’s assessment of the Company’s ability to continue as a going concern.\nOur audit work in relation to this included, but was not restricted to, the following:\n\n \n\n●We\nevaluated the cash flow forecasts prepared by management and evaluated the integrity and\narithmetical accuracy of the model.\n\n   \n\n●We\nevaluated the key assumptions used in the model to estimate future cash flows for a reasonable\nperiod of time, not exceeding 12 months from the issued date of the consolidated financial\nstatements, by comparing assumptions used by management against budgets, economic and industry\nindicators and publicly available information.\n\n   \n\n●We\nevaluated the key assumptions pertaining to estimated cash flows from operating activities\nand expected cash flows from financing activities, underlying agreements, private placement\nraises and subsequent events thereafter.\n\n   \n\n●We\nassessed the adequacy of the going concern disclosures included in Note 1 of the consolidated\nfinancial statements and consider these to appropriately reflect the assessments that management\nhas performed.\n\n \n\nF-3\n\n \n\n \n\n*Valuation\nof the units issued for debt settlement*\n\n* *\n\n*Critical\nAudit Matter Description*\n\n* *\n\nAs\ndescribed in Note 10, on March 18, 2025, the Company closed the debt settlement through the issuance of units in full satisfaction of\nthe term loan previously advanced by the Company. Each settlement unit consists of one common share of the Company and one common share\npurchase warrant of the Company. The units had a four month hold period and the common share purchase warrants included an acceleration\nfeature. It required management judgements and estimates to fair value the units. We identified the valuation of the units issued for\ndebt settlement as a critical audit matter because auditing the fair value of the units is complex and involves a high degree of auditor\njudgment.\n\n* *\n\n*Audit\nResponse*\n\n* *\n\nWe\nresponded to this matter by performing audit procedures over the valuation of the units issued for debt settlement. Our audit work in\nrelation to this included, but was not restricted to, the following:\n\n \n\n●We\nobtained management’s calculations for the fair value of the units and ensure the gain/loss\non the debt extinguishment was recorded properly\n\n   \n\n●We\ninvolved our valuation specialists to assess the Company’s valuation methodology,\nthe model used, the various inputs utilized as well as certain significant assumptions and\nthe calculation was accurate.\n\n \n\nWe\nhave served as the Company’s auditor since 2022.\n\n \n\nMNP\nLLP\n\nChartered\nProfessional Accountants\n\nLicensed\nPublic Accountants\n\n \n\nOttawa,\nCanada\n\n \n\nMarch\n13, 2026\n\n \n\nPCAOB\nID: 1930\n\n \n\nF-4\n\n \n\n \n\n \n\n**Consolidated\nBalance Sheets**\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n  \nNotes \n\n**December\n31,**\n\n**2025**\n\n**$**\n  \n\n**December\n31,**\n\n**2024**\n\n**$**\n \n\n  \n  \nAs\nat \n\n  \nNotes \n\n**December\n31,**\n\n**2025**\n\n**$**\n  \n\n**December\n31,**\n\n**2024**\n\n**$**\n \n\nASSETS \n  \n    \n   \n\nCURRENT ASSETS \n  \n    \n   \n\nCash and cash equivalents \n3 \n 39,780,384  \n 6,105,933 \n\nPrepaid expenses \n  \n 1,039,206  \n 540,288 \n\nOther receivables \n4 \n 5,655,947  \n 972,022 \n\nTOTAL CURRENT ASSETS \n  \n 46,475,537  \n 7,618,243 \n\n  \n  \n    \n   \n\nNON-CURRENT ASSETS \n  \n    \n   \n\nExploration and evaluation assets \n5 \n 42,730,629  \n 8,846,821 \n\nProperty, plant and equipment \n6 \n 9,312,414  \n 8,488,405 \n\nTOTAL NON-CURRENT ASSETS \n  \n 52,043,043  \n 17,335,226 \n\nTOTAL\nASSETS \n  \n 98,518,580  \n 24,953,469 \n\n  \n  \n    \n   \n\nLIABILITIES \n  \n    \n   \n\nCURRENT LIABILITIES \n  \n    \n   \n\nTrade payables and accrued liabilities –\ncurrent \n2(c),7 \n 9,459,971  \n 3,893,216 \n\nVehicle financing – current \n2(c) \n 148,862  \n 136,935 \n\nMortgage payable – current \n9 \n 244,260  \n - \n\nDSU liability –\ncurrent \n12(c) \n 104,720  \n 177,602 \n\nTOTAL CURRENT LIABILITIES \n  \n 9,957,813  \n 4,207,753 \n\n  \n  \n    \n   \n\nNON-CURRENT LIABILITIES \n  \n    \n   \n\nTrade payables and accrued liabilities –\nnon-current \n2(c),7 \n -  \n 584,364 \n\nProvision for leave and severance \n  \n 1,365,850  \n 1,001,936 \n\nVehicle financing – non-current \n2(c) \n 137,361  \n 109,202 \n\nMortgage payable – non-current \n9 \n 1,089,094  \n - \n\nTerm Loan \n10 \n -  \n 18,983,212 \n\nNSR option liability \n11 \n 2,750,000  \n 2,750,000 \n\nDSU liability –\nnon-current \n12(c) \n 268,672  \n 764,062 \n\nTOTAL NON-CURRENT LIABILITIES \n  \n 5,610,977  \n 24,192,776 \n\nTOTAL\nLIABILITIES \n  \n 15,568,790  \n 28,400,529 \n\n  \n  \n    \n   \n\nSHAREHOLDERS’ EQUITY\n(DEFICIENCY) \n  \n    \n   \n\nCommon Shares (no par value, unlimited Common Shares authorized) (issued\nand outstanding: December 31, 2025 – 35,502,754, December 31, 2024 – 9,285,424) \n12 \n -  \n - \n\nPreferred shares (no par value, 20,000,000\nauthorized) Series 1 Convertible Preferred Shares (no par value, 4,000,000 authorized) (issued and outstanding: December 31, 2025\n– 118,186; December 31, 2024 – 118,186) \n12 \n 31,516  \n 31,516 \n\nAdditional paid-in capital \n  \n 291,858,035  \n 145,025,333 \n\nDeficit \n  \n (206,073,424) \n (146,987,099)\n\nAccumulated other comprehensive\nloss \n  \n (2,866,337) \n (1,516,810)\n\nTOTAL\nSHAREHOLDERS’ EQUITY (DEFICIENCY) \n  \n 82,949,790  \n (3,447,060)\n\nTOTAL\nLIABILITIES AND SHAREHOLDERS’ EQUITY \n  \n 98,518,580  \n 24,953,469 \n\nNature of Operations and Going Concern (Note\n1) \n  \n    \n   \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nApproved\nby the Board of Directors on March 13, 2026.\n\n \n\n“signed”\n\nSean\nWhiteford\n\nDirector\nand Chief Executive Officer\n\n“signed”\n\nJason\nLeBlanc\n\nDirector\n\n \n\nF-5\n\n \n\n \n\n \n\n**Consolidated\nStatements of Operations and Comprehensive Loss**\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n  \n  \n2025  \n2024 \n\n  \n  \nYear\nended December 31, \n\n  \n  \n2025  \n2024 \n\n  \nNotes \n$  \n$ \n\nEXPENSES \n  \n    \n   \n\nGeneral exploration expenses \n5 \n 36,113,842  \n 29,651,360 \n\nDepreciation and amortization \n6 \n 2,068,821  \n 1,581,270 \n\nGeneral and administrative expenses \n2(c),18 \n 8,423,722  \n 7,617,245 \n\nInvestor relations and communications \n2(c) \n 4,981,937  \n 362,933 \n\nDirector fees \n  \n 482,396  \n 1,020,523 \n\nFair value movement of DSUs \n12(c) \n (298,914) \n (963,340)\n\nImpairment loss \n5 \n 501,497  \n - \n\nNet foreign exchange loss \n  \n 839,857  \n 408,086 \n\nLOSS FOR THE YEAR BEFORE\nOTHER ITEMS \n  \n 53,113,158  \n 39,678,077 \n\n  \n  \n    \n   \n\nOTHER ITEMS \n  \n    \n   \n\nInterest income, net \n  \n (437,638) \n (114,114)\n\nInterest expense and accretion on term loan \n10 \n 428,371  \n 3,109,319 \n\nLoss on term loan extinguishment \n10 \n 5,982,434  \n - \n\nOther income \n  \n -  \n (252,999)\n\nNET LOSS FOR THE YEAR \n  \n 59,086,325  \n 42,420,283 \n\n  \n  \n    \n   \n\nOTHER COMPREHENSIVE LOSS\n(INCOME) \n  \n    \n   \n\nExchange differences on\ntranslation of foreign operations \n  \n 1,349,527  \n (272,177)\n\n  \n  \n    \n   \n\nTOTAL\nCOMPREHENSIVE LOSS FOR THE YEAR \n  \n 60,435,852  \n 42,148,106 \n\n  \n  \n    \n   \n\nBasic and diluted loss per\nshare \n  \n 2.86  \n 5.02 \n\nWeighted average number\nof Common Shares outstanding – basic and diluted \n  \n 20,650,750  \n 8,446,643 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-6\n\n \n\n \n\n \n\n**Consolidated\nStatements of Changes in Shareholders’ Equity (Deficiency)**\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n  \nNotes \nNumber\nof\nshares  \n\n**Preferred**\n\n**shares**\n\n**$**\n  \n\n**Additional**\n\n**paid-in**\n\n**capital**\n\n**$**\n  \n\n**Deficit**\n\n**$**\n  \n\n**Accumulated**\n\n**other**\n\n**comprehensive**\n\n**(loss)\nincome**\n\n**$**\n  \n\n**Total**\n\n**shareholders’**\n\n**(deficiency)**\n\n**equity**\n\n**$**\n \n\nBALANCE,\nDECEMBER 31, 2024 \n -\n 9,285,424  \n 31,516  \n 145,025,333  \n (146,987,099) \n (1,516,810) \n (3,447,060)\n\nNet loss for the period \n - \n -  \n -  \n -  \n (59,086,325) \n -  \n (59,086,325)\n\nShare capital issued through public offering \n12(a)-\n 14,035,100  \n \n-\n  \n 80,000,070  \n -  \n -  \n 80,000,070 \n\nShare issue costs – public offering \n12(a)- \n -  \n -  \n (5,333,881) \n -  \n -  \n (5,333,881)\n\nShare capital issued through private placement \n12(a)- \n 8,394,953  \n -  \n 49,709,891  \n -  \n -  \n 49,709,891 \n\nShare issue costs – private placement \n12(a)- \n -  \n -  \n (5,389,306) \n -  \n -  \n (5,389,306)\n\nShare capital issued through debt conversion \n10- \n 3,768,941  \n -  \n 26,594,817  \n -  \n -  \n 26,594,817 \n\nShare issue costs – debt conversion \n10- \n -  \n -  \n (2,161,483) \n -  \n -  \n (2,161,483)\n\nExercise/settlement of share-based awards,\nnet \n12(c)- \n 18,336  \n -  \n -  \n -  \n -  \n - \n\nShare-based compensation \n12(c)- \n -  \n -  \n 3,412,594  \n -  \n -  \n 3,412,594 \n\nExchange differences on\ntranslation of foreign operations \n - \n -  \n -  \n -  \n -  \n (1,349,527) \n (1,349,527)\n\nBALANCE, DECEMBER 31,\n2025 \n - \n 35,502,754  \n 31,516  \n 291,858,035  \n (206,073,424) \n (2,866,337) \n 82,949,790 \n\n  \n  \n    \n    \n    \n    \n    \n   \n\nBALANCE, DECEMBER 31,\n2023 \n - \n 7,465,041  \n 31,516  \n 116,069,973  \n (104,566,816) \n (1,788,987) \n 9,745,686 \n\nBalance \n - \n 7,465,041  \n 31,516  \n 116,069,973  \n (104,566,816) \n (1,788,987) \n 9,745,686 \n\n  \n  \n    \n    \n    \n    \n    \n   \n\nNet loss for the period \n - \n -  \n -  \n -  \n (42,420,283) \n -  \n (42,420,283)\n\nShare capital issued through private placement \n - \n 1,814,070  \n -  \n 28,239,254  \n -  \n -  \n 28,239,254 \n\nShare issue costs \n - \n -  \n -  \n (1,239,037) \n -  \n -  \n (1,239,037)\n\nExercise/settlement of share-based awards,\nnet \n - \n 6,313  \n -  \n -  \n -  \n -  \n - \n\nShare-based compensation \n - \n -  \n -  \n 1,955,143  \n -  \n -  \n 1,955,143 \n\nExchange differences on\ntranslation of foreign operations \n - \n -  \n -  \n -  \n -  \n 272,177  \n 272,177 \n\nBALANCE, DECEMBER 31,\n2024 \n - \n 9,285,424  \n 31,516  \n 145,025,333  \n (146,987,099) \n (1,516,810) \n (3,447,060)\n\nBalance \n - \n 9,285,424  \n 31,516  \n 145,025,333  \n (146,987,099) \n (1,516,810) \n (3,447,060)\n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-7\n\n \n\n \n\n \n\n**Consolidated\nStatements of Cash Flows**\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n  \nNotes \n\n**2025**\n\n**$**\n  \n\n**2024**\n\n**$**\n \n\nOPERATING ACTIVITIES \n  \n    \n   \n\nNet loss for the period \n  \n (59,086,325) \n (42,420,283)\n\nAdjustments to reconcile net loss to net cash\nused in operating activities: \n  \n    \n   \n\nDSUs granted \n  \n 28,209  \n 1,020,523 \n\nFair value movement of DSUs \n12(c) \n (298,914) \n (963,340)\n\nShare-based compensation \n12(c) \n 3,412,594  \n 1,955,143 \n\nDepreciation and amortization \n6 \n 2,068,821  \n 1,581,270 \n\nProvision for leave and\nseverance \n  \n 363,914  \n 470,858 \n\nInterest and accretion,\nnet \n  \n 100,775  \n 1,046,280 \n\nAccrued interest on lease\nliability \n  \n -  \n 114,335 \n\nLoss on term loan extinguishment \n10 \n 5,982,434  \n - \n\nDSU redemption \n12(c) \n (297,567) \n - \n\nImpairment loss \n5 \n 501,497  \n - \n\nOther income \n  \n -  \n (252,999)\n\nUnrealized foreign exchange\ngain \n  \n (231,202) \n - \n\nChanges in non-cash working capital \n  \n    \n   \n\nPrepaid expenses and other\nreceivables \n  \n (5,107,198) \n (348,655)\n\nTrade\npayables and accrued expenses \n  \n 4,982,390  \n 197,434 \n\nNet\ncash used in operating activities \n  \n (47,580,572) \n (37,599,434)\n\n  \n  \n    \n   \n\nINVESTING ACTIVITIES \n  \n    \n   \n\nAcquisition of property, plant and equipment \n6 \n (2,786,684) \n (1,022,231)\n\nAcquisition of exploration\nand evaluation assets \n6 \n (34,441,488) \n - \n\nNet\ncash used in investing activities \n  \n (37,228,172) \n (1,022,231)\n\n  \n  \n    \n   \n\nFINANCING ACTIVITIES \n  \n    \n   \n\nProceeds from issuance of units \n12(a) \n 126,000,070  \n 27,499,999 \n\nShare issue costs \n10,12(a) \n (7,697,337) \n (358,746)\n\nVehicle loan financing, net of payments \n  \n 48,901  \n (6,155)\n\nMortgage financing \n9 \n 1,413,144  \n - \n\nMortgage payments \n9 \n (79,789) \n - \n\nLease payments \n  \n -  \n (1,788,454)\n\nNet\ncash provided by financing activities \n  \n 119,684,989  \n 25,346,644 \n\n  \n  \n    \n   \n\nEffect\nof exchange rate changes on cash and cash equivalents \n  \n (1,201,794) \n 135,326 \n\nChange in cash and cash equivalents for the\nyear \n  \n 33,674,451  \n (13,139,695)\n\nCash and cash equivalents\nat the beginning of the year \n  \n 6,105,933  \n 19,245,628 \n\nCash\nand cash equivalents at the end of the year \n  \n 39,780,384  \n 6,105,933 \n\n  \n  \n    \n   \n\nSupplemental cash flow information \n  \n    \n   \n\nNon-cash financing activities: \n  \n    \n   \n\nFair value of Common Shares\nissued for\nconversion of term loan \n10 \n 17,727,018  \n - \n\nFair value of Settlement\nWarrants issued\nfor conversion of term loan \n10 \n 7,398,104  \n - \n\nFair value of Common Shares\nissued for\nfinder’s fees and advisory services \n10,12(a) \n 5,179,586  \n 1,087,755 \n\nOther cash flow information: \n  \n    \n   \n\nIncome taxes paid \n  \n -  \n - \n\nInterest paid \n  \n 342,969  \n 2,213,032 \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-8\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**1.\nNATURE OF OPERATIONS AND GOING CONCERN**\n\n \n\n*a)\nNature of Operations*\n\n \n\nNexMetals\nMining Corp. and its wholly owned subsidiaries’ (formerly Premium Resources Ltd.) principal business activity is the\nexploration and evaluation of the Selebi Main and Selebi North copper-nickel-cobalt mines in Botswana as well as the exploration and\nevaluation of the copper, nickel, cobalt, platinum-group elements of the Selkirk mine in Botswana.\n\n \n\nThe\ncommon shares of NEXM are listed and posted for trading on the Nasdaq and on the TSXV under the symbol “NEXM”. Prior to June\n11, 2025, the Company traded on the TSXV under its previous name and symbol, Premium Resources Ltd. and “PREM”, respectively.\nThe Company’s head and registered office is located at 1111 West Hastings Street, 15th Floor, Vancouver, British Columbia, Canada,\nV6E 2J3.\n\n \n\n*b)\nGoing Concern*\n\n \n\nThe\nCompany, being in the exploration stage, is subject to risks and challenges similar to companies in a comparable stage of exploration\nand development. These risks include the challenges of securing adequate capital for exploration and advancement of the Company’s\nmaterial projects, operational risks inherent in the mining industry, and global economic and metal price volatility, and there is no\nassurance management will be successful in its endeavours.\n\n \n\nThese\nconsolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it\nwill continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course\nof operations. The ability of the Company to continue operations as a going concern is ultimately dependent upon achieving profitable\noperations and its ability to obtain adequate financing. The Company incurred a net loss of $59,086,325 for the year ended December 31,\n2025. To date, the Company has not generated profitable operations from its resource activities and will need to invest additional funds\nin carrying out its planned evaluation, development and operational activities.\n\n \n\nIt\nis not possible to predict whether future financing efforts will be successful or if the Company will attain a profitable level of operations.\nThese material uncertainties cast substantial doubt about the Company’s ability to continue as a going concern. These consolidated\nfinancial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification\nof liabilities and the reported expenses and comprehensive loss that might be necessary should the Company be unable to continue as a\ngoing concern. These adjustments could be material.\n\n \n\nThe\nproperties in which the Company currently has an interest are in pre-revenue stage. As such, the Company is dependent on external financing\nto fund its activities. In order to carry out the planned activities and cover administrative costs, the Company will use its existing\nworking capital and raise additional amounts as needed.\n\n \n\nOn\nNovember 17, 2025, the Company closed a public offering for gross proceeds of $80,000,070 (Note 12(a)). While this transaction provided\nsufficient capital for the Company to pay the second instalment under the Selebi APA (defined in Note 5) of $34,441,488 (US$25,000,000)\nand fund operations in the near term, the Company will need further funding to support advancement of the Selebi Mines and the Selkirk\nMine toward the development stage.\n\n \n\nAlthough\nthe Company has been successful in its past fundraising activities, there is no assurance as to the success of future fundraising efforts\nor as to the sufficiency of funds raised in the future.\n\n \n\nF-9\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**2.\nBASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES**\n\n \n\n*(a)\nStatement of Compliance*\n\n \n\nThese\nconsolidated financial statements reflect the accounts of the Company and have been prepared in accordance with US GAAP and pursuant\nto the rules and regulations of the SEC.\n\n \n\n*(b)\nBasis of Preparation*\n\n \n\nThese\nconsolidated financial statements have been prepared under the historical cost convention, modified by the revaluation of any financial\nassets and financial liabilities where applicable. The preparation of these consolidated financial statements in accordance with US GAAP\nrequires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial\nstatements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from\nthose estimates. The Company assessed certain accounting matters that generally require consideration of forecasted financial information\nin context with the information reasonably available to the Company as of December 31, 2025, and through the date of this Report filing.\n\n \n\nOperating\nsegments are reported in a manner consistent with the internal reporting provided to executive management. The Company determined that\nit has one reportable operating segment being that of the acquisition, exploration and evaluation of mineral properties in three geographic\nsegments, which are Canada, Barbados and Botswana (Note 15).\n\n \n\nThe\nCompany’s presentation currency is Canadian dollars. Reference herein of $ or CAD is to Canadian dollars, US$ or USD is to United\nStates dollars, and BWP is to Botswana pula.\n\n \n\n*(c)\nReclassification*\n\n \n\nCertain\ncomparative figures on the consolidated balance sheets, consolidated statements of operations and comprehensive loss and the notes\nto the consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications\nhave no effect on net loss or shareholders’ equity as previously reported. For the year ended December 31, 2024, general and\nadministrative expenses were reduced by $362,933 with\nan increase to investor relations and communications in the same amount. Trade payables and accruals of $584,364 was\nreclassified from current to non-current and vehicle financing of $136,935 was reclassified from non-current to current for the year\nended December 31, 2024.\n\n \n\nF-10\n\n \n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n*(d)\nShare Consolidation*\n\n \n\nOn\nJune 20, 2025, the Company consolidated its Common Shares on the basis of twenty (20) pre-consolidated shares for every one (1) post-consolidation\nshare (the “**Share Consolidation**”). No fractional shares were issued in connection with the Share Consolidation. All\nfractional shares created by the Share Consolidation were rounded to the nearest whole number of Common Shares, with any fractional interest\nrepresenting one-half (1/2) or more Common Shares entitling holders thereof to receive one whole Common Share.\n\n \n\nAs\na result of the Share Consolidation, the number of Common Shares issuable upon exercise of outstanding warrants has been adjusted in\naccordance with the applicable warrant terms, such that each warrant now entitles the holder to receive one post-consolidation Common\nShare for every twenty Common Shares previously issuable, at a proportionally adjusted exercise price. The total number of warrants outstanding\nwas not affected by the Consolidation. For comparative and presentation purposes, all warrant figures presented herein, including the\nnumber of warrants outstanding and the number of Common Shares issuable upon exercise, are presented on a post-consolidation basis.\n\n \n\nThe\nexercise price, Options outstanding, and number of Common Shares issuable upon the exercise of outstanding Options presented in these\nfinancial statements were proportionately adjusted to reflect the Share Consolidation. Further, the number of restricted share units\nand deferred share units, and number of Common Shares issuable upon the vesting of restricted share units presented in these financial\nstatements were also proportionately adjusted to reflect the Share Consolidation. All information respecting outstanding Common Shares\nand other securities of the Company, including basic and diluted loss per share, in the current and comparative periods presented herein\ngive effect to the Share Consolidation.\n\n \n\n*(e)\nBasis of Consolidation*\n\n \n\nThese\nconsolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries as summarized in\nthe table below. All intercompany transactions, balances, income and expenses are eliminated upon consolidation.\n\n \n\nSCHEDULE OF ITS WHOLLY-OWNED SUBSIDIARIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS\n\n**Name\nof Entity**\n** **\n\n**Place\nof**\n\n**Incorporation**\n\n** **\n\n**Percentage**\n\n**Ownership**\n\n** **\n**Functional\nCurrency**\n\n \n \n \n \n \n \n \n\nNexMetals\nMining Corp.\n \nBritish\nColumbia, Canada\n \n \n \nCAD\n\nNAN\nExploration Inc.\n \nOntario,\nCanada\n \n100\n \nCAD\n\nPNR\nAmalco Ltd.\n \nOntario,\nCanada\n \n100\n \nCAD\n\nPremium\nResources International Ltd.\n \nBarbados\n \n100\n \nUSD\n\nPremium\nResources Selkirk (Barbados) Limited\n \nBarbados\n \n100\n \nUSD\n\nPremium\nResources Selebi (Barbados) Limited\n \nBarbados\n \n100\n \nUSD\n\nPremium\nNickel Group Proprietary Limited\n \nBotswana\n \n100\n \nBWP\n\nPremium\nNickel Resources Proprietary Limited\n \nBotswana\n \n100\n \nBWP\n\n \n\n*(f)\nForeign currency translation*\n\n \n\nForeign\ncurrency transactions are translated into the functional currency using the exchange rates prevailing at the date of the transaction.\nForeign denominated monetary items are translated at the rates prevailing on the balance sheet date. Non-monetary items measured at historical\ncost continue to be carried at the exchange rates prevailing at the date of the transaction. Non-monetary items measured at fair value\nare reported at the exchange rate prevailing at the date when fair values were determined.\n\n \n\nExchange\ndifferences arising on the translation of monetary items or on settlement of monetary items are recognized in net loss in the year in\nwhich they arise.\n\n \n\nExchange\ndifferences arising on the translation of non-monetary items are recognized in other comprehensive loss to the extent that gains and\nlosses arising on those non-monetary items are also recognized in other comprehensive loss. Where the non-monetary gain or loss is recognized\nin net loss, the exchange component is also recognized in net loss.\n\n \n\n*(g)\nForeign operations*\n\n \n\nIn\nthe Company’s consolidated financial statements, all assets, liabilities and transactions of the Company’s entities with\na functional currency other than the Canadian dollar are translated into Canadian dollars upon consolidation. The functional currency\nof the Company’s subsidiaries in Barbados is the USD, and the BWP for the subsidiaries in Botswana. On consolidation, assets and\nliabilities have been translated into Canadian dollars at the closing rate on the balance sheet date. Fair value adjustments arising\non the acquisition of a foreign entity have been treated as assets and liabilities of the foreign entity and translated into Canadian\ndollars at the closing rate on the balance sheet date. Income and expenses have been translated into Canadian dollars at the average\nrate over the reporting period. Exchange differences are charged or credited to other comprehensive loss and recognised in the currency\ntranslation reserve in equity. On disposal of a foreign operation, the related cumulative translation differences recognised in equity\nare reclassified to profit or loss and are recognised as part of the gain or loss on disposal.\n\n \n\nF-11\n\n \n\n* *\n\n**\n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n* *\n\n*(h)\nCash and Cash Equivalents*\n\n \n\nCash\nand cash equivalents include all highly-liquid investments with an original maturity of three months or less. The Company minimizes its\ncredit risk by investing its cash and cash equivalents with major Canadian and international banks and financial institutions with a\nminimum long-term credit rating of A, as defined by Standard & Poor’s. The Company’s management believes that no concentration\nof credit risk exists with respect to the investment of its cash and cash equivalents.\n\n \n\n*(i)\nExploration and evaluation assets*\n\n \n\nCosts\nof leasing, exploration, evaluation, carrying and retaining unproven mineral properties are expensed as incurred. If the Company identifies\nproven and probable reserves in its investigation of a property and upon the establishment of commercial feasibility, the property would\nenter the development stage and future costs would be capitalized until production is established. When a property reaches the production\nstage, the related capitalized costs are amortized on a units-of-production basis over the proven and probable reserves following the\ncommencement of production. Interest expense allocable to the cost of developing mining properties and to construct new facilities is\ncapitalized until assets are ready for their intended use.\n\n \n\nTo\ndate, the Company has not established the commercial feasibility of any exploration prospects; therefore, all exploration and evaluation\ncosts are being expensed.\n\n \n\n*ASC\n930-805 - Extractive Activities-Mining: Business Combinations* states that mineral rights consist of the legal right to explore, extract,\nand retain at least a portion of the benefits from mineral deposits. Mining assets include mineral rights which are considered tangible\nassets under *ASC 930-805*. *ASC 930-805* requires that mineral rights be recognized at fair value as of the acquisition date.\nAs a result, the direct costs to acquire mineral rights are initially capitalized as tangible assets. Mineral rights include costs associated\nwith acquiring patented and unpatented mining claims.\n\n \n\n*(j)\nImpairment of long-lived assets*\n\n \n\nLong-lived\nassets, including exploration and evaluation assets and property, plant and equipment, are subject to impairment tests whenever events\nor changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances that could trigger a review include,\nbut are not limited to: significant decreases in the market price of the assets; significant adverse changes in the business climate\nor legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction\nof the assets; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated\nwith the use of the assets; and current expectation that the assets will more likely than not be sold or significantly disposed of before\nthe end of their estimated useful life.\n\n \n\nWhen\nindicators of potential impairment are present, the Company prepares a projected undiscounted cash flow analysis for the respective asset\nor asset group. If the sum of the undiscounted cash flows is less than the carrying value of the asset or asset group, an impairment\nloss is recognized equal to the excess of the carrying value over the fair value. Fair value can be determined using a market approach,\nincome approach or cost approach. Recognized impairment losses are not reversed.\n\n \n\nDuring\nthe year ended December 31, 2025, the Company recorded an impairment loss of $501,497 in relation to the Phikwe South and Southeast Extension\ndeposits (Note 5).\n\n \n\n*(k)\nLeases*\n\n \n\nAt\ncommencement of a contract, the Company assesses whether a contract is, or contains, a lease by determining whether the contract conveys\nthe right to control the use of an identified asset for a period of time in exchange for consideration. A right-of-use (the “**ROU**”)\nasset and lease liability are recognized at the lease commencement date. The lease liability is initially measured at the present value\nof all future lease payments that have not been paid as of the commencement date of the lease, discounted using the Company’s incremental\nborrowing rate, unless the rate implicit in the lease is readily determinable. The ROU asset is initially measured at cost, which is\ncalculated as the initial amount of the lease liability, with an adjustment for any initial direct costs incurred, plus adjustments for\nany lease payments made in advance of the commencement date, and less any lease incentives received.\n\n \n\nASC\n842 requires a lessee to classify a lease as either a finance or operating lease. Interest and amortization expense are recognized for\nfinance leases while only a single lease expense is recognized for operating leases, typically on a straight-line basis.\n\n \n\nROU\nassets are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable.\nThe right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.\nThe lease liability is remeasured when there is a change in future lease payments, when there is a change in the Company’s estimate\nof the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise\na purchase, extension or termination option. These adjustments are recorded through profit or loss.\n\n \n\nF-12\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n* *\n\n*(l)\nProperty, plant and equipment*\n\n \n\nProperty,\nPlant and Equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses.\n\n \n\nSubsequent\ncosts are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that\nfuture economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying\namount of a significant replaced part is derecognized. All other repairs and maintenance are charged to net loss during the financial\nperiod in which they are incurred. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and\nare recognized in net loss.\n\n \n\nDepreciation\nis calculated using the straight-line method to charge the cost, less residual value, of the assets to net loss over their estimated\nuseful lives. The depreciation rate applicable to each category of property, plant and equipment is as follows:\n\n \n\nSCHEDULE\nOF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT \n\n**Property,\nPlant & Equipment**\n** **\n\n**Estimated**\n\n**useful\nlife**\n\n**(years)**\n\nComputer\nand software\n \n2\n\nVehicles\n \n4\n\nEquipment\n \n5\n\nFurniture\nand fixtures\n \n10\n\nBuildings\n \n25\n\n \n\n*(m)\nAdditional paid-in capital*\n\n \n\nAdditional\npaid-in capital is presented at the value of the shares issued as the Company’s shares have no stated par value. Transaction costs\ndirectly attributable to the issuance of Common Shares are recognized as a deduction from equity. Transactions with shareholders are\ndisclosed separately in equity.\n\n \n\nThe\nproceeds from the exercise of Options or warrants, together with amounts previously recorded in additional paid-in capital over the applicable\nvesting periods for Options, warrants, and restricted share units, are recorded as additional paid-in capital.\n\n \n\n*(n)\nUnit placements*\n\n \n\nThe\nCompany uses the relative fair value method with respect to the measurement of shares and warrants issued as private placement or public\noffering units. Under the relative fair value method, the Company first determines the fair value of the Common Shares and warrants issued\nin a private placement or public offering, calculates the total fair value of the issued units, and then allocates the proceeds received\nbetween the Common Shares and warrants based on their relative fair values.\n\n \n\n*(o)\nShare-based compensation*\n\n \n\nThe\nCompany grants equity settled share-based compensation in the form of Options and RSUs and cash settled share-based compensation in the\nform of DSUs in exchange for the provision of services. The Company records share-based compensation in accordance with *ASC 718 -\nCompensation – Stock Compensation* using the fair value method. All transactions in which goods or services are the consideration\nreceived for the issuance of equity instruments are accounted for based on the fair value of the equity instrument issued.\n\n \n\nThe\nCompany determines the fair value of the awards on the date of grant. The value of the portion of the award that is ultimately expected\nto vest is recognized as an expense in net loss over the requisite service period. At the end of the reporting period, the Company updates\nits estimate of the number of awards that are expected to vest and adjusts the total expense to be recognized over the vesting period.\nWhere an unvested award is cancelled by the Company or the counterparty, any remaining element of the fair value of the award is expensed\nimmediately or reversed through profit or loss, depending on the type of cancellation.\n\n \n\nThe\nliability with respect to cash settled DSUs is revalued at the end of each reporting period to reflect changes in the Company’s\nshare price, with these fair value adjustments recognized in net loss for the period.\n\n \n\n*(p)\nLoss per Common Share*\n\n \n\nBasic\nloss per Common Share is calculated using the weighted average number of Common Shares outstanding during the period and does not include\noutstanding Options, RSUs and warrants. Diluted loss per Common Share is not presented differently from basic loss per Common Share as\nthe conversion of outstanding Options, RSUs and warrants into Common Shares would be anti-dilutive given the Company’s ongoing\nnet loss position.\n\n* *\n\nF-13\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n* *\n\n*(q)\nIncome taxes*\n\n \n\nThe\nCompany’s tax provision consists of taxes currently payable or receivable, plus any change during the period in deferred tax assets\nand liabilities. The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets\nand liabilities are recognized for certain temporary differences between the financial statement carrying amounts of assets and liabilities\nand their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable\nincome in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and\nliabilities of a change in tax rates is recognized in net loss in the period of the enactment date. In addition, a valuation allowance\nis established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred\ntax asset will not be realized.\n\n \n\nThe\nCompany operates in multiple jurisdictions where uncertainties arise in the application of complex tax regulations. Therefore, there\nare many transactions and calculations for which the ultimate tax determination is uncertain. Accounting for income taxes requires a\ntwo-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition\nby determining if available evidence indicates it is more likely than not that the tax position will be sustainable based on its technical\nmerits. The second step is to measure the tax benefit as the largest amount with a greater than 50 percent likelihood of being realized\nupon ultimate settlement. For tax positions that are 50 percent or less likely of being sustained upon audit, the Company does not recognize\nany portion of that benefit in the financial statements.\n\n \n\n*(r)\nDerivative instruments*\n\n \n\nThe\nCompany evaluates its financial instruments and other contracts to determine if those contracts, or embedded components of those contracts,\nqualify as derivatives to be separately accounted for in accordance with *ASC 815 – Derivatives and Hedging*. The result of\nthis accounting treatment is that the fair value of the embedded derivative is marked-to-market at each balance sheet date and recorded\nas an asset or liability and the change in fair value is recorded in net loss.\n\n \n\nThe\nclassification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed\nat the end of each reporting period. Derivative instruments that become subject to reclassification are reclassified at the fair value\nof the instrument on the reclassification date.\n\n \n\n*(s)\nDebt Extinguishment*\n\n \n\nUpon\nthe extinguishment of debt, the difference between the consideration transferred on extinguishment, including miscellaneous costs of\nreacquisition, and the net carrying amount of the debt being extinguished, being the amount due at maturity, adjusted for unamortized\npremiums, discounts, and costs of issuance, is recognized as a gain or loss when the debt is extinguished. The fair value of the assets\ntransferred or the fair value of an equity interest granted is used in accounting for the settlement of the debt unless the fair value\nof the debt being settled is more clearly evident.\n\n \n\n \n\n*(t)*\nUse of Estimates\n\n \n\nThe\npreparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions\nthat can affect reported amounts of assets, liabilities, revenues and expenses and the accompanying disclosures. Estimates and assumptions\nare continuously evaluated and are based on management’s historical experience and on other assumptions believed to be reasonable\nat the time of preparation of the consolidated financial statements. However, different estimates and assumptions could result in outcomes\nthat require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The more significant areas\nrequiring the use of management estimates and assumptions include the recoverability of exploration and evaluation assets; asset lives\nfor depreciation and amortization; the Company’s ability to continue as a going concern; valuation of share-based compensation\nand warrants; deferred taxes and valuation allowances; and asset retirement obligations. Management has determined that the Company has\nno asset retirement obligations at December 31, 2025.\n\n \n\nF-14\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**Recently\nAdopted Accounting Pronouncements**\n\n \n\n*(u)\nASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures*\n\n \n\nIn\nDecember 2023, the FASB issued a final standard on improvements to income tax disclosures. The standard requires disaggregated information\nabout a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. This new standard does\nnot affect the recognition, measurement or financial statement presentation. The Company adopted the new standard effective January 1,\n2025. Refer to Note 17 – *Income Taxes* for further information.\n\n \n\n**Recently\nIssued Accounting Pronouncements and Disclosures Not Yet Adopted**\n\n \n\n*(v)\nASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures and ASU 2025-01 (Subtopic\n220-40): Clarifying the Effective Date*\n\n \n\nIn\nNovember 2024, FASB issued an ASU which will require entities to provide disaggregated disclosure of specified categories of expenses\nthat are included on the face of the income statement, including: purchases of inventory, employee compensation, depreciation, amortization\nand depletion. In January 2025, FASB clarified the effective dates of this ASU, which becomes effective January 1, 2027. The Company\nis assessing the impact of this ASU, and upon adoption, may be required to include certain additional disclosures in the notes to its\nconsolidated financial statements.\n\n \n\n**3.\nCASH AND CASH EQUIVALENTS**\n\n \n\nA\nsummary of the Company’s cash and cash equivalents is detailed in the table below:\n\n \n\nSCHEDULE OF CASH AND CASH EQUIVALENTS\n\n  \n\n**December\n31,**\n\n**2025**\n\n**$**\n  \n\n**December\n31,**\n\n**2024**\n\n**$**\n \n\n  \n   \n  \n\nCash \n 39,492,884  \n 4,015,933 \n\nShort-term deposits \n 287,500  \n 2,090,000 \n\nTotal\ncash and cash equivalents \n 39,780,384  \n 6,105,933 \n\n \n\n**4.\nOTHER RECEIVABLES**\n\n \n\nA\nsummary of the Company’s other receivables is detailed in the table below:\n\n \n\nSCHEDULE OF OTHER RECEIVABLES\n\n  \n\n**December\n31,**\n\n**2025**\n\n**$**\n  \n\n**December\n31,**\n\n**2024**\n\n**$**\n \n\n  \n   \n  \n\nHST on purchases \n 319,180  \n 503,235 \n\nVAT on purchases \n 5,249,975  \n 468,787 \n\nOther receivables \n 86,792  \n - \n\nTotal\nother receivables \n 5,655,947  \n 972,022 \n\n \n\nVAT on purchases includes a receivable in the amount of $4,813,564 (Note 7) arising from the second instalment payment in respect of\nthe Selebi Mines and Selkirk Mine (Note 5), which the Company received on February 16, 2026.\n\n \n\nF-15\n\n \n\n \n\n** **\n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**5.\nEXPLORATION AND EVALUATION ASSETS**\n\n \n\nThe\nexploration and evaluation assets of the Company consist of the acquisition costs of mining assets located in Botswana:\n\n \n\nSCHEDULE\nOF EXPLORATION AND EVALUATION ASSETS\n\n  \n\n**Selebi**\n\n**$**\n  \n\n**Selkirk**\n\n**$**\n  \n\n**Total**\n\n**$**\n \n\n  \nBotswana  \n  \n\n  \n\n**Selebi**\n\n**$**\n  \n\n**Selkirk**\n\n**$**\n  \n\n**Total**\n\n**$**\n \n\n  \n   \n   \n  \n\nBalance, December 31, 2023 \n 8,285,523  \n 309,275  \n 8,594,798 \n\nForeign\ncurrency translation \n 242,955  \n 9,068  \n 252,023 \n\nBalance, December 31, 2024 \n 8,528,478  \n 318,343  \n 8,846,821 \n\nBalance \n 8,528,478  \n 318,343  \n 8,846,821 \n\nImpairment loss – Phikwe\nSouth and Southeast Extension \n (501,497) \n -  \n (501,497)\n\nAddition\n– Selebi APA Second Instalment \n 34,441,488  \n -  \n 34,441,488 \n\nForeign\ncurrency translation \n (60,249) \n 4,066  \n (56,183)\n\nBalance, December 31,\n2025 \n 42,408,220  \n 322,409  \n 42,730,629 \n\nBalance \n 42,408,220  \n 322,409  \n 42,730,629 \n\n \n\nThe\nfollowing is a description of the Company’s exploration and evaluation assets and the related spending commitments:\n\n \n\n**Botswana\nAssets - Selebi and Selkirk**\n\n \n\nIn\nSeptember 2021, the Company executed the Selebi APA with the BCL liquidator to acquire the Selebi Mines formerly operated by BCL. In\nJanuary 2022, the Company closed the transaction and ownership of the Selebi Mines transferred to the Company.\n\n \n\nPursuant\nto the Selebi APA, the aggregate purchase price payable to the seller for the Selebi Mines shall be the sum of $77,646,318 (US$56,750,000),\nwhich amount shall be paid in three instalments:\n\n \n\n●\n$2,086,830\n(US$1,750,000) payable on the closing date. This payment has been made. The Company also made care and maintenance funding contributions\nin respect of the Selebi Mines from March 22, 2021, to the closing date of $6,164,688 (US$5,178,747).\n\n \n \n\n●\n$34,441,488\n(US$25,000,000)\npayable upon the approval by the Botswana Ministry of Mineral Resources, Green Technology and Energy Security\n(“**MMRGTES**”) of the Company’s Section 42 and Section 43 applications (for the further extension of the\nmining license and amendment of mining program, respectively) which are to be submitted along with a compliant economic study on or\nprior to December 31, 2026 (extended by the BCL liquidator from the previous submission timeline of March 2026). The Company prepaid\nthe non-refundable $34,441,488\non December 2, 2025, securing unencumbered title to both Selebi and Selkirk mines.\n\n \n \n\n●\n$41,118,000\n(US$30,000,000) payable on the earlier of completion of mine construction and production start-up (commissioning) by the Company,\nor December 1, 2029.\n\n \n\nThe\ntotal acquisition cost of the Selebi Mines includes the first instalment of $2,086,830 (US$1,750,000), the payment of the care and maintenance\nfunding contribution of $6,164,688 (US$5,178,747), and the second instalment of $34,441,488 (US$25,000,000).\n\n \n\nIn\naddition to the Selebi APA, the purchase of the Selebi Mines is also subject to a royalty agreement as well as a contingent consideration\nagreement with the liquidator. The royalty agreement consists of a NSR royalty of 2% on the net value of sales of concentrate or other\nmaterials with respect to production from the Selebi mining licence, of which the Company has the right to buy-back 50% (Note 11). The\ncontingent consideration agreement consists of two components: (i) a sliding scale payment of US$0.50/tonne of ore up to US$1.40/tonne\nof ore with respect to the discovery of new mineable deposits greater than 25 million tonnes of ore from a base case of 15.9 million\ntonnes, with a minimum grade of 2.5% nickel equivalent, accrued at the time of a decision to mine; and (ii) price participation of 15%\non post-tax net earnings directly attributable to an increase of 25% or more in commodity prices, on a quarterly basis, for a period\nof seven years from the date of first shipment of concentrate or other materials.\n\n \n\nF-16\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\nThe\nCompany also negotiated a separate Selkirk APA with the liquidator of TNMC in January 2022 to acquire the Selkirk deposit and related\ninfrastructure formerly operated by TNMC. The transaction closed in August 2022.\n\n \n\nThe\nSelkirk APA does not provide for a purchase price or initial payment for the purchase of the assets. The acquisition cost of the\nSelkirk Mine of $327,109\n(US$244,954)\nwas the care and maintenance funding contribution from April 1, 2021, to the closing date of the Selkirk APA. The Selkirk APA\nprovides that if the Company elects to develop the Selkirk Mine first, the payment of the second Selebi instalment of $34,441,488\n(US$25,000,000)\nwould be upon the approval by the MMRGTES of the Company’s Section 42 and Section 43 applications (for the further extension\nof the Selkirk mining licence and amendment of the Selkirk mining program, respectively). The Company prepaid the non-refundable\nsecond instalment on December 2, 2025. For the third Selebi instalment of $41,118,000\n(US$30,000,000),\nif the Selkirk Mine were to be commissioned earlier than the Selebi Mines, the payment would trigger on the Selkirk Mine’s\ncommission date. The Selkirk APA provides for a three-year study phase originally expiring August 17, 2025, which has been extended\nfor one year to August 17, 2026.\n\n \n\nIn\naddition to the Selkirk APA, the purchase of the Selkirk Mine is also subject to a royalty agreement as well as a contingent consideration\nagreement with the liquidator. The royalty agreement consists of a NSR royalty of 1% on the net value of sales of concentrate or other\nmaterials with respect to production from the Selkirk mining licence, which the Company has the right to buy-back in full (Note 11).\nThe contingent consideration agreement is on similar terms as the Selebi Mines contingent consideration.\n\n \n\nIn\nAugust 2023, the Company entered into a binding commitment letter with the liquidator of BCL to acquire a 100% interest in two additional\ndeposits, Phikwe South and the Southeast Extension, located adjacent to and immediately north of the Selebi North shaft. The agreement\nhas since lapsed and on August 11, 2025, the Company informed the liquidator of BCL that it would no longer be pursuing the acquisition\nof the Phikwe South and the Southeast Extension deposits. As a result, the Company recorded an impairment loss of $501,497 during the\nyear ended December 31, 2025, related to care and maintenance costs during the evaluation period of the properties in 2023, which had\nbeen previously capitalized as part of the Selebi Mines acquisition cost.\n\n \n\nBoth\nthe Selebi Mines and Selkirk Mine are subject to a royalty payable to the Botswana Government of 5% of all precious metals sales and\n3% of all base metals sales.\n\n \n\nF-17\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**General\nExploration Expenses**\n\n \n\nDetails\nof the general exploration expenses by nature are presented as follows:\n\n \n\nSCHEDULE\nOF GENERAL EXPLORATION EXPENSES\n\n \n \n1\n \n \n2\n \n \n3\n \n \n4\n \n \n5\n \n \n6\n \n \n7\n \n \n8\n \n\n \n \nYear\nended December 31, 2025\n \n \nYear\nended December 31, 2024\n \n\n \n \n\n**Selebi**\n\n**$**\n\n \n \n\n**Selkirk**\n\n**$**\n\n \n \n\n**Other**\n\n**$**\n\n \n \n\n**Total**\n\n**$**\n\n \n \n\n**Selebi**\n\n$\n\n \n \n\n**Selkirk**\n\n$\n\n \n \n\n**Other**\n\n**$**\n\n \n \n\n**Total**\n\n**$**\n\n \n\nDrilling\n \n \n7,063,432\n \n \n \n1,640,695\n \n \n \n-\n \n \n \n8,704,127\n \n \n \n6,703,402\n \n \n \n-\n \n \n \n-\n \n \n \n6,703,402\n \n\nSite operations, administration,\n& overhead\n \n \n4,327,546\n \n \n \n808,072\n \n \n \n305,648\n \n \n \n5,441,266\n \n \n \n4,298,941\n \n \n \n435,957\n \n \n \n156,457\n \n \n \n4,891,355\n \n\nInfrastructure & equipment\nmaintenance\n \n \n3,022,358\n \n \n \n101,335\n \n \n \n-\n \n \n \n3,123,693\n \n \n \n3,872,782\n \n \n \n-\n \n \n \n-\n \n \n \n3,872,782\n \n\nGeology\n \n \n2,387,878\n \n \n \n1,607,693\n \n \n \n-\n \n \n \n3,995,571\n \n \n \n3,042,562\n \n \n \n505,783\n \n \n \n-\n \n \n \n3,548,345\n \n\nMine development\n \n \n2,859,779\n \n \n \n-\n \n \n \n-\n \n \n \n2,859,779\n \n \n \n3,030,676\n \n \n \n-\n \n \n \n-\n \n \n \n3,030,676\n \n\nElectricity\n \n \n4,318,262\n \n \n \n21,397\n \n \n \n- \n \n \n \n4,339,659\n \n \n \n2,904,188\n \n \n \n27,377\n \n \n \n-\n \n \n \n2,931,565\n \n\nEngineering & technical\nstudies\n \n \n2,701,547\n \n \n \n269,746\n \n \n \n-\n \n \n \n2,971,293\n \n \n \n1,066,361\n \n \n \n248,343\n \n \n \n-\n \n \n \n1,314,704\n \n\nGeophysics\n \n \n843,239\n \n \n \n195,272\n \n \n \n-\n \n \n \n1,038,511\n \n \n \n993,152\n \n \n \n107,942\n \n \n \n-\n \n \n \n1,101,094\n \n\nFreight, tools, supplies,\n& other consumables\n \n \n1,614,795\n \n \n \n269,225\n \n \n \n-\n \n \n \n1,884,020\n \n \n \n915,925\n \n \n \n10,417\n \n \n \n-\n \n \n \n926,342\n \n\nHealth & safety\n \n \n482,355\n \n \n \n7,138\n \n \n \n-\n \n \n \n489,493\n \n \n \n319,146\n \n \n \n44\n \n \n \n-\n \n \n \n319,190\n \n\nEnvironmental, social &\ngovernance\n \n \n453,692\n \n \n \n1,387\n \n \n \n-\n \n \n \n455,079\n \n \n \n302,737\n \n \n \n-\n \n \n \n-\n \n \n \n302,737\n \n\nShare-based\ncompensation\n \n \n547,364\n \n \n \n263,987\n \n \n \n-\n \n \n \n811,351\n \n \n \n567,335\n \n \n \n141,833\n \n \n \n-\n \n \n \n709,168\n \n\nTotal\n \n \n30,622,247\n \n \n \n5,185,947\n \n \n \n305,648\n \n \n \n36,113,842\n \n \n \n28,017,207\n \n \n \n1,477,696\n \n \n \n156,457\n \n \n \n29,651,360\n \n\n \n\nF-18\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**6.\nPROPERTY, PLANT AND EQUIPMENT**\n\n \n\nThe\ntables below set out costs and accumulated depreciation and amortization as at December 31, 2025, and December 31, 2024:\n\n \n\nSCHEDULE OF PROPERTY,\nPLANT AND EQUIPMENT\n\nCost \n\n**Land\nand Buildings(1)**\n\n**$**\n  \n\n**Equipment(1,2)**\n\n**$**\n  \n\n**Furniture\n&**\n\n**Fixtures**\n\n**$**\n  \n\n**Vehicles**\n\n**$**\n  \n\n**Computer\n& Software**\n\n**$**\n  \n\n**Total**\n\n**$**\n \n\nBalance – December 31, 2023 \n 2,909,637  \n 5,476,434  \n 191,899  \n 398,032  \n 567,407  \n 9,543,409 \n\nAdditions \n 73,049  \n 1,129,567  \n 30,121  \n 111,629  \n 6,543  \n 1,350,909 \n\nForeign\ncurrency translation \n 86,264  \n (22,306) \n 3,857  \n 11,561  \n 35,317  \n 114,693 \n\nBalance – December 31, 2024 \n 3,068,950  \n 6,583,695  \n 225,877  \n 521,222  \n 609,267  \n 11,009,011 \n\nBalance, Cost \n 3,068,950  \n 6,583,695  \n 225,877  \n 521,222  \n 609,267  \n 11,009,011 \n\nAdditions \n -  \n 2,461,636  \n 2,826  \n 276,385  \n 45,851  \n 2,786,698 \n\nAdditions, Cost \n -  \n 2,461,636  \n 2,826  \n 276,385  \n 45,851  \n 2,786,698 \n\nForeign\ncurrency translation \n 39,191  \n 30,335  \n 2,234  \n 7,485  \n 8,275  \n 87,520 \n\nForeign currency translation, Cost \n 39,191  \n 30,335  \n 2,234  \n 7,485  \n 8,275  \n 87,520 \n\nBalance\n– December 31, 2025 \n 3,108,141  \n 9,075,666  \n 230,937  \n 805,092  \n 663,393  \n 13,883,229 \n\nBalance, Cost \n 3,108,141  \n 9,075,666  \n 230,937  \n 805,092  \n 663,393  \n 13,883,229 \n\n \n\nAccumulated\nDepreciation and Amortization \n\n**Land\nand**\n\n**Buildings(1)**\n  \n**Equipment(1)**  \n\nFurniture\n\n&\n\nFixtures\n  \nVehicles  \n\nComputer\n\n&\n\nSoftware\n  \nTotal \n\nBalance – December 31, 2023 \n 170,256  \n 401,409  \n 19,079  \n 106,083  \n 145,948  \n 842,775 \n\nDepreciation during the year \n 110,535  \n 1,229,847  \n 14,750  \n 113,688  \n 162,644  \n 1,631,464 \n\nForeign currency translation \n 2,609  \n 13,358  \n 750  \n 4,581  \n 25,069  \n 46,367 \n\nBalance – December 31, 2024 \n 283,400  \n 1,644,614  \n 34,579  \n 224,352  \n 333,661  \n 2,520,606 \n\nBalance, Accumulated Depreciation & Amortization \n 283,400  \n 1,644,614  \n 34,579  \n 224,352  \n 333,661  \n 2,520,606 \n\nDepreciation during the period \n 100,514  \n 1,494,323  \n 28,066  \n 166,145  \n 279,773  \n 2,068,821 \n\nDepreciation during the period, Accumulated Depreciation & Amortization \n 100,514  \n 1,494,323  \n 28,066  \n 166,145  \n 279,773  \n 2,068,821 \n\nForeign currency translation \n 4,703  \n (35,881) \n 631  \n 4,657  \n 7,278  \n (18,612)\n\nForeign currency translation, Accumulated Depreciation & Amortization \n 4,703  \n (35,881) \n 631  \n 4,657  \n 7,278  \n (18,612)\n\nBalance – December\n31, 2025 \n 388,617  \n 3,103,056  \n 63,276  \n 395,154  \n 620,712  \n 4,570,815 \n\nBalance, Accumulated Depreciation & Amortization \n 388,617  \n 3,103,056  \n 63,276  \n 395,154  \n 620,712  \n 4,570,815 \n\n \n\nCarrying\nValue \n\n**Land\nand**\n\n**Buildings(1)**\n  \n**Equipment(1)(2)**  \n\nFurniture\n&\n\nFixtures\n  \nVehicles  \n\nComputer\n\n&\n\nSoftware\n  \nTotal \n\nBalance –\nDecember 31, 2024 \n 2,785,550  \n 4,939,081  \n 191,298  \n 296,870  \n 275,606  \n 8,488,405 \n\nBalance, Carrying Value \n 2,785,550  \n 4,939,081  \n 191,298  \n 296,870  \n 275,606  \n 8,488,405 \n\nBalance – December\n31, 2025 \n 2,719,524  \n 5,972,610  \n 167,661  \n 409,938  \n 42,681  \n 9,312,414 \n\nBalance, Carrying Value \n 2,719,524  \n 5,972,610  \n 167,661  \n 409,938  \n 42,681  \n 9,312,414 \n\n \n\nNotes:\n\n \n\n(1)\n\nLand\nand Buildings contains the Syringa Lodge ROU asset and Equipment contains the drilling equipment\nsupply agreement ROU asset (Note 8). The Company obtained full title to these assets during\nthe year ended December 31, 2024.\n\n \n \n\n(2)\nIncluded within Equipment\nis $216,002 related to a third underground to surface drill conversion kit and other capital components in transit at December 31,\n2025, and $227,545 related to a deposit on a second Marcotte deep drill which was being fabricated by the supplier at December 31,\n2025, both of which are currently non-depreciable.\n\n \n\nF-19\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**7.\nTRADE PAYABLES AND ACCRUED LIABILITIES**\n\n \n\nA\nsummary of trade payables and accrued liabilities is detailed in the table below:\n\n \n\nSCHEDULE\nOF TRADE PAYABLES AND ACCRUED LIABILITIES\n\n  \n\n**December\n31,**\n\n**2025**\n\n**$**\n  \n\n**December\n31,**\n\n**2024**\n\n**$**\n \n\n  \n   \n  \n\nAmounts due to related parties\n(Note 13) \n 540,443  \n 1,259,665 \n\nTrade payables \n 7,147,173  \n 2,493,306 \n\nAccrued liabilities \n 751,511  \n 724,609 \n\nSeverance payable \n 1,020,844  \n - \n\nTotal \n 9,459,971  \n 4,477,580 \n\nLess: current portion \n 9,459,971  \n 3,893,216 \n\nNon-current\nportion \n -  \n 584,364 \n\n \n\nTrade\npayables include $4,813,564 (Note 4) of VAT due to the BCL liquidator arising from the second instalment payment in respect of the Selebi\nMines and Selkirk Mine (Note 5).\n\n \n\nSeverance\npayable at December 31, 2025, includes amounts due to the Company’s former Chief Executive Officer and Chief Financial Officer\nwho departed the Company in December 2024 and July 2025, respectively, of which: $48,697 is payable in equal monthly instalments until\nDecember 31, 2026, and $59,792 is payable in equal monthly instalments until July 31, 2026. The Company has reported the full amounts\nas current at December 31, 2025. For the year ended December 31, 2024, the corresponding amount due to the Company’s former Chief\nExecutive Officer of $1,168,729 was reported in amounts due to related parties, of which $584,364 was reported as non-current.\n\n \n\nAmounts\ndue to related parties at December 31, 2025, includes severance payable of $500,000 due to the Company’s former Chief Executive\nOfficer in accordance with the succession plan announced on December 15, 2025, which was paid upon their departure in January 2026.\n\n** **\n\n**8.\nLEASE LIABILITIES**\n\n \n\nThe\nfollowing table summarizes quantitative information pertaining to the Company’s finance and operating leases:\n\n \n\nSCHEDULE\nOF FINANCE AND OPERATING LEASES COST\n\n  \n\n**2025**\n\n**$**\n  \n\n**2024**\n\n**$**\n \n\n  \nYear\nended December 31, \n\n  \n\n**2025**\n\n**$**\n  \n\n**2024**\n\n**$**\n \n\nLease cost \n    \n   \n\nFinance lease cost: \n    \n   \n\nAmortization\nof finance lease right-of-use assets \n -  \n 317,957 \n\nInterest on lease liabilities \n -  \n 114,335 \n\nShort-term operating lease\ncost \n 1,876,302  \n 1,327,338 \n\nTotal\nlease cost \n 1,876,302  \n 1,759,630 \n\n \n\nSCHEDULE OF SUPPLEMENTAL CASH FLOWS INFORMATION\n\n  \n\n2025\n\n$\n  \n\n2024\n\n$\n \n\n  \nYear\nended December 31, \n\n  \n\n2025\n\n$\n  \n\n2024\n\n$\n \n\nCash paid for amounts included in the measurement\nof lease liabilities: \n    \n   \n\nOperating cash\nflows from operating leases \n 1,876,302  \n 1,327,338 \n\nFinancing cash flows from\nfinance leases, principal payment \n -  \n 1,674,119 \n\nFinancing cash flows from\nfinance leases, interest payment \n -  \n 114,335 \n\nNon-cash additions (reductions) to right-of-use\nassets and lease liabilities: \n    \n   \n\nRecognition of right-of-use\nassets for finance leases \n -  \n - \n\nDepreciation of right-of-use\nassets for finance leases \n -  \n (317,957)\n\n* *\n\nF-20\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n*Finance\nLeases*\n\n \n\n**Syringa\nLodge**\n\n \n\nIn\nJuly 2022, the Company executed a sales agreement (the “**Lodge Agreement**”) with Tuli Tourism Pty Ltd. (the “**Seller**”)\nfor the Syringa Lodge in Botswana. Pursuant to the Lodge Agreement, the aggregate purchase price payable to the Seller shall be the sum\nof $3,213,404 (BWP 30,720,000), payable in three instalments. A deposit of $482,011 (BWP 4,608,000) was paid in August 2022, and a second\ninstalment of $1,306,906 (BWP 13,056,000) was paid in July 2023. The Company paid 50% of the final instalment of $653,061 (BWP 6,528,000)\non September 12, 2024, and paid the final outstanding balance of $656,064 (BWP 6,528,000) on December 10, 2024. There were no amounts\noutstanding under the agreement for the years ended December 31, 2025, and 2024, and the assets are now 100% owned by the Company.\n\n \n\nIn\naddition to the above purchase price, the Company was required to pay to the Seller an agreed interest amount of 6% per annum on the\noutstanding balance, accrued and payable monthly. The Company recognized a finance lease for this lease.\n\n \n\n**Drilling\nEquipment**\n\n \n\nIn\nMarch 2023, the Company entered into a drilling equipment supply agreement (the “**Equipment Agreement**”) with Forage\nFusion Drilling Ltd. (“**Forage**”) to purchase specific drilling equipment on a “rent to own” basis with\nthe purchase price to be paid in monthly payments.\n\n \n\nPursuant\nto the Equipment Agreement, the aggregate purchase price payable to Forage was $2,942,000. A deposit of $1,700,000 was paid in March\n2023. The balance was payable in twelve equal monthly instalments of $103,500. Based on the stated equipment purchase price of $2,735,000\nand monthly instalments, the implied interest rate for the arrangement was 35%. The final instalment was paid on April 12, 2024, and\nthe equipment is now 100% owned by the Company. The Company recognized a finance lease for this lease.\n\n \n\n*Operating\nLeases*\n\n \n\nThe\nCompany has operating leases primarily related to surveying and mobile equipment with initial lease terms of twelve months or less. The\nCompany records these in general exploration expenses within the statement of operations and comprehensive loss.\n\n \n\n**9.\nMORTGAGE PAYABLE**\n\n \n\nOn\nAugust 20, 2025, the Company’s indirect wholly owned Botswanan subsidiary, PNRPL, entered into a mortgage in respect of the Company’s\npreviously acquired Syringa Lodge located near the Selebi Mines. The Company had acquired the Syringa Lodge to house non-local personnel\nand consultants when visiting the Selebi Mines and for additional office space. The proceeds of the mortgage were used to fund ongoing\ndrilling programs at the Selebi Mines.\n\n \n\nThe\nremaining principal amount of the mortgage is $1,333,354 (BWP 12,932,638), is denominated in Botswanan pula, bears interest at Absa Prime\nLending Rate (6.76% at December 31, 2025) plus 1.5% per annum, is repayable in fifty six (56) equal monthly blended instalments of principal\nand interest with a maturity date of August 20, 2030, and is secured by the Syringa Lodge. There is no fee for prepayment, and the mortgage\nis subject to a cash flow to debt service covenant which takes into consideration parent company capital contributions and is to be assessed\nbased on each calendar year. The Company was in compliance with this covenant as of December 31, 2025.\n\n \n\nF-21\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**10.\nTERM LOAN**\n\n \n\nThe\nCompany had a three-year Term Loan with Cymbria, the lender and an affiliate of the Company’s largest shareholder, EdgePoint, in\nthe amount of $20,882,353 which bore interest at a rate of 10% per annum and was to mature on June 28, 2026.\n\n \n\nOn\nMarch 18, 2025, the Company closed a financing transaction the March 2025 Financing which included a non-brokered private placement (Note\n12(a)) and the Debt Conversion.\n\n \n\nThe\nCompany issued to Cymbria an aggregate of 3,480,392 Settlement Units at a deemed issue price of $6.00 per Settlement Unit in full satisfaction\nof the $20,882,353 principal amount outstanding under the Term Loan. Each Settlement Unit consisted of one Common Share of the Company\nand a Settlement Warrant of the Company. Accrued interest under the Term Loan, up to the date of the Debt Conversion, in the amount of\n$268,896, was settled in cash.\n\n \n\nEach\nSettlement Warrant entitles the holder to acquire one additional Common Share of the Company at a price of $8.00 per Common Share until\nMarch 18, 2028. If, at any time prior to the expiry date, the volume-weighted average trading price of the Common Shares is at least\n$40.00 per Common Share for a period of 20 trading days, the Company may, at its option, accelerate the expiry date with 30 days’\nnotice to the Settlement Warrant holders.\n\n \n\nThe\nfair value of the Common Shares issued as part of the Settlement Units was estimated at $17,727,018 and was determined by applying an\nimplied discount of 37.9% per Common Share for lack of marketability to the market observed price on the date of issuance. The fair value\nof the Settlement Warrants was estimated at $7,398,104 using a Monte Carlo model. The $5,982,434 difference between the fair value of\nthe Settlement Units issued of $25,125,122 and the carrying amount of the Term Loan of $19,142,687 was recognized as a loss in the current\nperiod.\n\n \n\nThe\nMonte Carlo model used to value the Settlement Warrants was based on the following assumptions:\n\n \n\nSCHEDULE\nOF FAIR VALUE OF SETTLEMENT WARRANTS\n\n  \n\nSettlement\n\nWarrants\n \n\nExpected dividend yield \n 0%\n\nShare price \n$5.00 \n\nExpected share price volatility \n 81.8%\n\nRisk free interest rate \n 2.57%\n\nExpected life of warrant \n 3\nyears \n\n \n\nThe\nvolatility was determined by calculating the historical volatility of the Company’s share price over a 3-year period using daily\nclosing prices. The formula used to compute historical volatility is the standard deviation of the logarithmic returns. The same implied\ndiscount for lack of marketability for purposes of the Common Shares valuation was also applied to the share price for the Settlement\nWarrants valuation.\n\n \n\nIn\nconnection with the March 2025 Financing, the Company issued: (i) 200,000 Common Shares to TriView for its services as finder; (ii) 450,000\nCommon Shares to Fiore and 187,500 Common Shares to Bowering for certain advisory services; and (iii) 179,335 Common Shares to a financial\nadvisor for financial advisory services. The fair value of these shares was determined to be $5,179,586. In addition to the Common Shares,\nthe Company incurred various legal, listing and financing fees payable in cash totaling $2,371,203. Certain of these fees were allocated\nbetween the non-brokered private placement (Note 12(a)) and Debt Conversion transactions based on the value of the units issued under\neach transaction.\n\n \n\nAll\nsecurities issued as part of the Debt Conversion are subject to a hold period, which expired July 19, 2025, with the exception of the\nCommon Shares issued to Fiore and Bowering which have a hold period expiring March 18, 2026.\n\n \n\nThe\nfollowing is a continuity of the Term Loan:\n\n \n\nSCHEDULE\nOF CONTINUITY OF TERM LOAN\n\n  \n$ \n\nTerm Loan balance, December\n31, 2023 \n 17,956,423 \n\nAccrued interest \n 2,082,530 \n\nAccretion of warrant\nvalue and transaction costs \n 1,026,789 \n\nInterest\npaid \n (2,082,530)\n\nTerm Loan balance, December 31, 2024 \n 18,983,212 \n\nAccrued interest \n 268,896 \n\nAccretion of warrant\nvalue and transaction costs \n 159,475 \n\nInterest paid \n (268,896)\n\nDebt\nConversion \n (19,142,687)\n\nTerm\nLoan balance, December 31, 2025 \n - \n\n \n\nF-22\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**11.\nNSR OPTION**\n\n \n\nIn\n2023, Cymbria paid an aggregate of $2,750,000 (“**Option Payment**”) to two subsidiaries of NEXM to acquire a right to\nparticipate with such subsidiaries in the exercise of certain contractual rights. The Option Payment was allocated to PNRPL and PNGPL\n(defined below) for $2,500,000 and $250,000, respectively.\n\n \n\nAs\nthe NSR options are exercisable entirely at the discretion of Cymbria and the underlying projects are in the exploration stage, the fair\nvalue of the call and put on the options as at December 31, 2025, and December 31, 2024, is $nil. The Option Payment received in cash\nwas recorded as a non-current liability.\n\n \n\nNEXM’s\nindirect wholly owned subsidiary, PNRPL, acquired the Selebi Mines in January 2022 out of liquidation. Pursuant to the acquisition agreement,\nthe liquidator retained a 2% net smelter returns royalty on the Selebi Mines. PNRPL has a contractual right to repurchase one-half of\nthe Selebi NSR at a future time on payment by PNRPL to the liquidator of $27,412,000 (US$20,000,000).\n\n \n\nNEXM’s\nindirect wholly owned subsidiary, PNGPL, acquired the Selkirk Mine in August 2022 out of liquidation. Pursuant to the acquisition agreement,\nthe liquidator retained a 1% net smelter returns royalty on the Selkirk Mine. PNGPL has a contractual right to repurchase the entirety\nof the Selkirk NSR at a future time on payment by PNGPL to the liquidator of $2,741,200 (US$2,000,000).\n\n \n\nEach\nof PNRPL and PNGPL has agreed to grant Cymbria, in exchange for the Option Payment, an option to participate in any such repurchase of\nthe applicable portion of its NSR from the relevant liquidator. Cymbria will, following the exercise of its option to participate in\nany such repurchase, acquire a 0.5% NSR royalty on the applicable property by paying an amount equal to one half of the repurchase price\npayable by PNRPL or PNGPL pursuant to the applicable NSR, less the Option Payment paid at closing pursuant to the relevant option agreement\namong Cymbria and PNRPL or PNGPL. Cymbria also has the right: (i) at any time following the date of any buyback exercise notice from\nPNRPL and/or PNGPL and prior to the first anniversary of sale of product, to terminate the option and receive from PNRPL and/or PNGPL\na refund of the related option price paid by Cymbria; (ii) upon receipt from PNRPL and/or PNGPL of any termination, settlement or waiver\nof the buyback right or royalty agreement and prior to the first anniversary of sale of product, to exercise the option or terminate\nthe option, and if terminated PNRPL and/or PNGPL shall refund the related option price paid by Cymbria; (iii) to exercise the option\nand compel PNRPL and/or PNGPL to exercise the buyback right at any time within the first nine months immediately following the first\nanniversary of sale of product and not less than 60 days prior to the date of exercise of the buyback right; and (iv) to require PNRPL\nand/or PNGPL to repurchase the option from Cymbria for an amount equal to the option price at any time commencing on the first anniversary\nof sale of product, provided PNRPL and/or PNGPL have not provided a buyback exercise notice or notice of any termination, settlement\nor waiver of the buyback right or royalty agreement to Cymbria.\n\n \n\nUnder\nthe NSR option purchase agreements, Cymbria could acquire a 0.5% net smelter returns royalty on the Selebi Mines and Selkirk Mine upon\npayment of $11,105,287 (US$8,102,500) and $1,110,529 (US$810,250), respectively.\n\n \n\nF-23\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**12.\nSHARE CAPITAL**\n\n \n\nAs\ndisclosed in Note 2(d), the Share Consolidation has been applied retrospectively herein.\n\n \n\nThe\nauthorized capital of the Company comprises an unlimited number of Common Shares without par value and 20,000,000 Preferred Shares, issuable\nin series, of which 4,000,000 are authorized to be designated as Series 1 Convertible Preferred Shares.\n\n \n\nThere\nare currently 118,186 Series 1 Convertible Preferred Shares outstanding, without par value, which are convertible at a ratio of 180:1,\nto 657 Common Shares.\n\n \n\n*a)*\n*Common\nShares Issued and Outstanding*\n\n \n\n**Year\nended December 31, 2025**\n\n** **\n\n**November\n2025 Financing**\n\n** **\n\nOn\nNovember 17, 2025, the Company closed the November 2025 Financing which consisted of issuing 14,035,100 November 2025 Units of the Company\nat a price of $5.70 per unit for aggregate proceeds of $80,000,070. Each November 2025 Unit consisted of one Common share of the Company\nand one November 2025 Warrant. Each November 2025 Warrant entitles the holder to acquire one additional Common Share at a price of $8.00\nper share until November 17, 2027.\n\n \n\nIn\nconnection with the November 2025 Financing, the agents received a total cash fee of $4,512,017 equal to 6.0% of the gross proceeds and\na reduced cash fee equal to 2.0% for sales to certain individuals. The Company also incurred various legal, listing and financing fees\npayable in cash totaling $821,864.\n\n \n\nThe\nrelative fair value of the Common Shares issued under the November 2025 Financing was estimated at $61,884,376\nand was determined based on the market observed price on the date of issuance. The relative fair value of the November 2025 Warrants\nwas estimated at $18,115,694\nusing the Black-Scholes Option Pricing Model. Gross proceeds raised of $80,000,070\nand related issuance costs were allocated to the Common Shares and warrants based on relative fair values.\n\n \n\nThe\nfair value of the November 2025 Warrants was calculated using the following assumptions:\n\n \n\nSCHEDULE\nOF FAIR VALUE OF WARRANTS\n\n \n** **\n\n**November\n2025**\n\n**Warrants**\n\n** **\n\nExpected\ndividend yield\n \n \n0\n%\n\nShare\nprice\n \n$\n4.91\n \n\nExpected\nshare price volatility\n \n \n77.47\n%\n\nRisk\nfree interest rate\n \n \n2.49\n%\n\nExpected\nlife of warrant\n \n \n2\nyears\n \n\n \n\nThe\nvolatility was determined by calculating the historical volatility of the Company’s share price over a 2-year period using daily\nclosing prices. The formula used to compute historical volatility is the standard deviation of the logarithmic returns.\n\n** **\n\nF-24\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n** **\n\n**March\n2025 Financing**\n\n** **\n\nOn\nMarch 18, 2025, the Company closed the March 2025 Financing which included a non-brokered private placement and the conversion of its\n$20,882,353 three-year Term Loan with Cymbria (Note 10).\n\n \n\nThe\nnon-brokered Private Placement consisted of issuing 7,666,667 Private Placement Units of the Company at a price of $6.00 per unit for\naggregate gross proceeds of $46,000,000. Each Private Placement Unit consisted of one Common Share of the Company and a Private Placement\nWarrant of the Company. Each Private Placement Warrant entitles the holder to acquire one additional Common Share at a price of $11.00\nper share until March 18, 2028.\n\n \n\nIn\nconnection with the March 2025 Financing, the Company issued: (i) 200,000 Common Shares to TriView for its services as finder; (ii) 450,000\nCommon Shares to Fiore and 187,500 Common Shares to Bowering for certain advisory services; and (iii) 179,335 Common Shares to a financial\nadvisor for financial advisory services. The fair value of these shares was determined to be $5,179,586. In addition to the Common Shares,\nthe Company incurred various legal, listing and financing fees payable in cash totaling $2,371,203. Certain of these fees were allocated\nbetween the Private Placement and Debt Conversion (Note 10) transactions based on the value of the units issued under each transaction.\n\n \n\nAll\nsecurities issued as part of the Private Placement are subject to a hold period which expired July 19, 2025, with the exception of the\nCommon Shares issued to Fiore and Bowering which have a hold period expiring March 18, 2026.\n\n \n\nThe\nfair value of the Common Shares issued under the Private Placement was estimated at $39,048,922 and was determined by applying an implied\ndiscount of 37.9% per Common Share for lack of marketability to the market observed price on the date of issuance. The fair value of\nthe Private Placements Warrants was estimated at $6,951,078 using the Black-Scholes Option Pricing Model.\n\n \n\nThe\nfair value of the Private Placement Warrants was calculated using the following assumptions:\n\n \n\n  \n\nPrivate\nPlacement\n\nWarrants\n \n\nExpected dividend yield \n 0%\n\nShare price \n$5.00 \n\nExpected share price volatility \n 81.8%\n\nRisk free interest rate \n 2.57%\n\nExpected life of warrant \n 3\nyears \n\n \n\nThe\nvolatility was determined by calculating the historical volatility of the Company’s share price over a 3-year period using daily\nclosing prices. The formula used to compute historical volatility is the standard deviation of the logarithmic returns. The same implied\ndiscount for lack of marketability for purposes of the Common Shares valuation was also applied to the share price for the Settlement\nWarrants valuation.\n\n \n\nF-25\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\nDuring\nthe year ended December 31, 2025, 2,124 Common Shares were issued for the net exercise of 12,000 Options, and 16,212 Common Shares were\nissued for the vesting and settlement of RSUs.\n\n \n\nAs\nat December 31, 2025, the Company had 35,502,754 Common Shares issued and outstanding (December 31, 2024 – 9,285,424).\n\n \n\n**Year\nended December 31, 2024**\n\n \n\nOn\nJune 14, 2024, the Company closed the first tranche of a non-brokered private placement offering (the “**June 2024 Financing**”),\npursuant to which the Company issued an aggregate 961,730 units of the Company (the “**June 2024 Units**”) at a price\nof $15.60 per June 2024 Unit for aggregate gross proceeds of $15,002,999. Each June 2024 Unit was comprised of one Common Share and one\nCommon Share purchase warrant of the Company (each, a “**June 2024 Warrant**”).\n\n \n\nOn\nJune 21, 2024, the Company closed the second tranche of the June 2024 Financing and issued an additional 801,090 June 2024 Units at $15.60\nper June 2024 Unit for gross proceeds of $12,497,000.\n\n \n\nEach\nJune 2024 Warrant entitles the holder thereof to acquire one Common Share for a period expiring 60 months following the date of issuance\nat a price of $22.00 per Common Share. If, at any time prior to the expiry date, the volume-weighted average trading price of the Common\nShares is at least $40.00 per Common Share for a period of 20 trading days, the Company may, at its option, accelerate the expiry date\nwith 30 days’ notice to the June 2024 Warrant holders.\n\n \n\nIn\nconnection with the June 2024 Financing, the Company issued 51,250 June 2024 Units (comprised of 51,250 Common Shares and 51,250 non-transferable\nJune 2024 Warrants) to a financial advisor.\n\n \n\nThe\nfair value of the June 2024 Warrants, calculated using the Monte Carlo model, was estimated at $12,533,135. Gross proceeds of $27,499,999\nand related issuance costs of $358,746 in cash, and the value of $1,087,755 for 51,250 June 2024 Units granted to the financial advisor\nwere allocated to the Common Shares and the June 2024 Warrants based on relative fair values. The key inputs used in the Monte-Carlo\nmodel were as follows:\n\n \n\nSCHEDULE\nOF FAIR VALUE OF WARRANTS\n\n  \n\nJune\n14,\n\n2024\n  \n\nJune\n21,\n\n2024\n \n\nExpected dividend yield \n 0% \n 0%\n\nShare price \n$16.20  \n$16.80 \n\nExpected share price volatility \n 83.17% \n 83.71%\n\nRisk free interest rate \n 3.23% \n 3.30%\n\nExpected life of warrant \n 5\nyears  \n 5\nyears \n\n \n\nThe\nvolatility was determined by calculating the historical volatility of stock prices of the Company over a 5-year period using daily closing\nprices. The formula used to compute historical volatility is the standard deviation of the logarithmic returns.\n\n \n\nDuring\nthe year ended December 31, 2024, 6,313 Common Shares were issued for the net exercise of 13,905 Options.\n\n \n\n*b)**Warrants*\n\n \n\nThe\nfollowing summarizes Common Share purchase warrant activity:\n\n \n\nSUMMARY\nOF COMMON SHARE PURCHASE WARRANT ACTIVITY\n\n  \nYear ended  \nYear ended \n\n  \nDecember\n31, 2025  \nDecember\n31, 2024 \n\n  \n\nNumber\n\nOutstanding\n  \n\nWeighted\n\nAverage\n\nExercise\n\nPrice $\n  \n\nNumber\n\nOutstanding\n  \n\n**Weighted**\n\n**Average**\n\n**Exercise**\n\n**Price\n$**\n \n\nOutstanding, beginning of the year \n 2,126,342  \n 23.02  \n 344,555  \n 30.00 \n\nIssued \n 21,348,826  \n 8.54  \n 1,814,070  \n 22.00 \n\nExpired \n (11,072) \n 35.00  \n (32,283) \n 41.00 \n\nOutstanding, end of the period \n 23,464,096  \n 9.84  \n 2,126,342  \n 23.02 \n\n \n\nF-26\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\nAt\nDecember 31, 2025, the Company had outstanding Common Share purchase warrants exercisable to acquire Common Shares as follows:\n\n \n\nSCHEDULE OF DETAILS OF WARRANTS OUTSTANDING\n\n**Warrants**\n\n**Outstanding**\n  \n\n**Warrants**\n\n**Exercisable**\n  \n\n**Expiry**\n\n**Date**\n \n\n**Exercise**\n\n**Price**\n\n**$**\n  \n\n**Intrinsic**\n\n**Value**\n\n**$**\n \n\n 301,200  \n 301,200  \nJune 28, 2026 \n 28.75  \n - \n\n 1,012,981  \n 1,012,981  \nJune 14, 2029 \n 22.00  \n - \n\n 801,089  \n 801,089  \nJune 21, 2029 \n 22.00  \n - \n\n 3,833,334  \n 3,833,334  \nMarch 18, 2028 \n 11.00  \n - \n\n 3,480,392  \n 3,480,392  \nMarch 18, 2028 \n 8.00  \n    - \n\n 14,035,100  \n 14,035,100  \nNovember 17, 2027 \n 8.00  \n - \n\n 23,464,096  \n 23,464,096  \n  \n    \n - \n\n \n\n*c)*\n*Omnibus\nPlan*\n\n \n\nDuring\nthe second quarter of 2025, the Company adopted a new “*rolling up to 10%*” long-term Omnibus Plan which replaces the\nCompany’s existing stock option plan, restricted share unit plan, and deferred share unit plan.\n\n \n\nThe\nOmnibus Plan provides for the award of RSUs, DSUs and Options to directors, officers, employees and consultants upon approval by the\nBoard of Directors. The maximum aggregate number of Common Shares issuable in respect of all past and future Awards granted or issued,\nat any point, shall not exceed 10% of the total number of issued and outstanding Common Shares on a non-diluted basis at such point in\ntime, subject to certain participation limits on grants. No Award granted or issued under the Omnibus Plan, other than Options, may vest\nbefore the date that is one year following the date it is granted or issued.\n\n \n\n**Options**\n\n \n\nAn\nOption is an Award that gives a participant the right to purchase one Common Share at a specified price. The exercise price of each Option\nshall not be less than the discounted market price on the grant date and as approved by the Board of Directors of the Company. The Options\ncan be granted for a maximum term of ten years.\n\n \n\nThe\nfollowing summarizes the Option activity:\n\n \n\nSCHEDULE\nOF OPTION ACTIVITY \n\n  \nYear ended  \nYear ended \n\n  \nDecember\n31, 2025  \nDecember\n31, 2024 \n\n  \n\nNumber\n\nOutstanding\n  \n\n**Weighted**\n\n**Average**\n\n**Exercise**\n\n**Price**\n\n**$**\n  \nNumber\nOutstanding  \n\n**Weighted**\n\n**Average**\n\n**Exercise**\n\n**Price**\n\n**$**\n \n\nOutstanding, beginning of the\nyear \n 779,343  \n 25.60  \n 674,401  \n 27.80 \n\nGranted \n 299,000  \n 9.99  \n 170,500  \n 21.00 \n\nExercised \n (12,000) \n 9.00  \n (13,905) \n 17.20 \n\nExpired/cancelled \n (53,603) \n 19.58  \n (51,653) \n 40.20 \n\nOutstanding, end of the period \n 1,012,740  \n 21.51  \n 779,343  \n 25.60 \n\n \n\nF-27\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\nThe\ntotal intrinsic value of Options exercised for the year ended December 31, 2025, was $30,996 (year ended December 31, 2024 - $149,405).\n\n \n\nDuring\nthe year ended December 31, 2025, the Company granted an aggregate of 299,000 Options to employees, directors, officers and consultants\nwith a term of five years. The Options have a weighted average exercise price of $9.99 per Common Share. Of the 299,000 Options granted,\n287,500 vests as to one-half on the date of grant and the balance on the first anniversary of the date of grant, 7,000 vested immediately\non the date of grant, and 4,500 vest annually in equal thirds beginning on the date of grant.\n\n \n\nFor\nthe year ended December 31, 2025, a total of $1,926,779 (December 31, 2024 - $1,881,417) was recorded as share-based compensation expense\nand credited to additional paid-in capital related to Options.\n\n \n\nThe\nfair value of Options granted was calculated using the Black-Scholes Option Pricing Model. The volatility was determined using the historical\ndaily volatility over the expected life of the Options. The expected life of the Options considered the contractual term of the Options,\nas well as an estimate of the time to exercise. The Black-Scholes Option Pricing Model used the following assumptions:\n\n \n\nSCHEDULE\nOF FAIR VALUE OF STOCK OPTION GRANTED\n\n  \nYear ended  \nYear ended \n\n  \n\nDecember\n31,\n\n2025\n  \n\nDecember\n31,\n\n2024\n \n\nStock price \n 8.20-8.70  \n 9.60-16.20 \n\nStrike price \n 9.80-10.00  \n 9.80-22.00 \n\nExpected dividend yield \n 0% \n 0%\n\nExpected forfeiture rate \n 0% \n 0%\n\nExpected share price volatility range \n 76.3-78.6% \n 74.2-79.8%\n\nWeighted average expected share price volatility \n 77.5% \n 75.9%\n\nRisk free interest rate \n 2.54%-2.70% \n 2.91%-3.23%\n\nExpected life of Options \n 2.5-3.5\nyears  \n 2.5-3.5\nyears \n\n \n\nDetails\nof Options outstanding as at December 31, 2025, are as follows:\n\n \n\nSCHEDULE\nOF DETAILS OF OPTIONS OUTSTANDING\n\n**Options**\n\n**Outstanding**\n  \n\n**Options**\n\n**Exercisable**\n  \n\n**Expiry**\n\n**Date**\n \n\n**Exercise**\n\n**Price**\n\n**$**\n  \n\n**Intrinsic**\n\n**Value**\n\n**$**\n \n\n 160,736  \n 160,736  \nJanuary 26, 2026 \n 7.80  \n - \n\n 21,250  \n 21,250  \nFebruary 25, 2026 \n 32.00  \n - \n\n 55,335  \n 55,335  \nSeptember 29, 2026 \n 18.20  \n - \n\n 49,940  \n 49,940  \nOctober 25, 2026 \n 40.00  \n - \n\n 97,499  \n 97,499  \nJanuary 20, 2027 \n 48.00  \n - \n\n 163,330  \n 108,887  \nAugust 8, 2028 \n 35.00  \n - \n\n 150,650  \n 100,433  \nAugust 14, 2029 \n 22.00  \n - \n\n 15,000  \n 10,833  \nDecember 4, 2029 \n 9.80  \n - \n\n 287,500  \n 143,750  \nMarch 18, 2030 \n 10.00  \n - \n\n 11,500  \n 8,500  \nApril 24, 2030 \n 9.80  \n - \n\n 1,012,740  \n 757,163  \n  \n    \n - \n\n  \n\nF-28\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**RSUs**\n\n \n\nAn\nRSU is an Award that upon settlement, entitles the recipient participant to receive one Common Share. The number, terms, and vesting\nconditions of RSUs awarded will be determined by the Board of Directors from time to time. The Company uses the fair value method of\naccounting for the recording of RSU grants, and the fair value of the RSUs was determined based on the closing price of the Company’s\nCommon Shares on the grant date.\n\n \n\nDuring\nthe year ended December 31, 2025, the Company granted an aggregate of 491,262 RSUs to employees, directors, officers and consultants\nwith 203,750 vesting in full on the first anniversary of the date of grant and the remaining 287,512 vesting over three years from the\ngrant date.\n\n \n\nThe\nfollowing is a continuity of the RSUs which are fixed and are not subject to vesting conditions other than service:\n\n \n\nSCHEDULE\nOF CONTINUITY OF RSU\n\n  \nYear end ended  \nYear ended \n\n  \nDecember\n31, 2025  \nDecember\n31, 2024 \n\n  \n\n**Number**\n\n**Outstanding**\n  \n\n**Weighted**\n\n**Average**\n\n**Grant-Date**\n\n**Fair\nValue Per Award $**\n  \n\n**Number**\n\n**Outstanding**\n  \n\n**Weighted**\n\n**Average**\n\n**Grant-Date**\n\n**Fair\nValue Per Award $**\n \n\nOutstanding, beginning of the year \n 50,000  \n 12.00  \n -  \n - \n\nGranted \n 491,262  \n 7.20  \n 50,000  \n 12.00 \n\nVested / Settled \n (16,670) \n 12.00  \n -  \n - \n\nOutstanding, end of the period \n 524,592  \n 7.51  \n 50,000  \n 12.00 \n\n \n\nFor\nthe year ended December 31, 2025, a total of $1,485,815 (December 31, 2024 – $73,726) was recorded as share-based compensation\nexpense and credited to additional paid-in capital related to RSUs. The total intrinsic value of RSUs redeemed during the year ended\nDecember 31, 2025, was $92,723 (December 31, 2024 – $nil).\n\n \n\n**DSUs**\n\n \n\nDSUs\nare granted annually by the Board of Directors and outstanding DSUs are settled in cash upon redemption. The number and vesting conditions\nof DSUs awarded will be determined by the Board of Directors from time to time. Each director may elect to receive any part or all of\ntheir cash-based portion of director fees in DSUs.\n\n \n\nThe\nDSUs credited to the account of a director may be redeemed no earlier than 90 days after the end of the year in which they ceased to\nbe a director, and no later than the end of the calendar year following the year in which the holder ceases to be a director.\n\n \n\nThe\nfollowing is a continuity of the DSUs:\n\n \n\nSCHEDULE\nOF DSU GRANTED\n\n  \n\nNumber\nof\n\nAwards\n  \n\n**Price(1)**\n\n**$**\n \n\nDSUs outstanding at December\n31, 2023 \n 36,548  \n 24.20 \n\nGranted \n 71,688  \n 14.24 \n\nDSUs outstanding at December 31, 2024 \n 108,236  \n 8.70 \n\nGranted \n 46,600  \n 4.91 \n\nRedeemed \n (39,749) \n 7.49 \n\nCancelled \n (4,699) \n 4.90 \n\n**DSUs\noutstanding at December 31, 2025**** **\n** ****110,388**** **** **\n** ****5.37**** **\n\n \n\nNote:\n\n \n\n(1)\nFor\nDSUs granted, cancelled and outstanding, price represents the closing price of the Company’s Common Shares on the grant date,\ncancellation date and balance sheet date, respectively. For DSUs redeemed, price represents the volume weighted average price on\nthe TSXV for the last five trading days immediately preceding the redemption date.\n\n \n\nDuring\nthe year end ended December 31, 2025, the Company granted 46,600 DSUs to Directors. During the year ended December 31, 2025, the Company\nrecorded a fair value adjustment gain of $298,914 on the outstanding DSUs (December 31, 2024 – $963,340). During the year ended\nDecember 31, 2025, the DSU compensation, net of fair value adjustments was a net gain of $270,705 (December 31, 2024 – net expense\nof $57,183). The total intrinsic value of DSUs redeemed during the year ended December 31, 2025, was $297,567 (December 31, 2024 –$nil).\n\n \n\nThe\nDSUs are classified as a derivative financial liability measured at fair value, with changes in fair value recorded in profit or loss.\nThe fair value of the DSUs was determined based on the closing price of the Company’s Common Shares on the respective balance sheet\ndate. As at December 31, 2025, the Company reassessed the fair value of the DSUs at $373,392 and recorded the amount as a DSU liability\n(December 31, 2024 - $941,664).\n\n \n\nF-29\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**13.\nRELATED PARTY TRANSACTIONS**\n\n \n\nThe\nfollowing amounts due to related parties are included in trade payables and accrued liabilities (Note 7).\n\n \n\nSCHEDULE\nOF RELATED PARTY TRANSACTIONS\n\n  \n\n**December\n31,\n2025**\n\n**$**\n  \n\n**December\n31,\n2024**\n\n**$**\n \n\n  \n   \n  \n\nDirectors\nand officers of the Company \n 540,443  \n 1,259,665 \n\nTotal \n 540,443  \n 1,259,665 \n\n \n\nAmounts due to related parties at December 31, 2025, includes\nseverance payable of $500,000\ndue to the Company’s former Chief Executive Officer in\naccordance with the succession plan announced on December 15, 2025, which was paid upon their departure in January 2026.\n\n \n\nIncluded\nin the amounts due to related parties at December 31, 2024, is $1,168,729 due to the Company’s former Chief Executive Officer related\nto his retirement from the Company in December 2024 and is payable in equal monthly instalments of $48,697 until December 31, 2026; the\nformer Chief Executive Officer was not considered a related party at December 31, 2025.\n\n \n\nThese\namounts are unsecured, non-interest bearing and have 30-day fixed terms of repayment with the exception of the retirement payment, as\nnoted above.\n\n \n\n(a)\nRelated\nparty transactions\n\n \n\nOn\nMarch 18, 2025, the Company closed the March 2025 Financing which included the conversion of its Term Loan held by EdgePoint and its\naffiliates to equity (Note 10). The Company issued to EdgePoint and its affiliates an aggregate of 3,480,392 Settlement Units. EdgePoint\nand its affiliates also subscribed for 1,578,500 November 2025 Units as part of the November 2025 Financing. As of December 31, 2025,\nEdgePoint and its affiliates beneficially owned an aggregate of 6,250,553 Common Shares and 5,744,707 warrants, representing approximately\n17.6% of the outstanding Common Shares (approximately 29.1% on a partially-diluted basis assuming the exercise of all warrants held by\nEdgePoint).\n\n \n\nIn\nconnection with the March 2025 Financing and November 2025 Financing, certain insiders of the Company subscribed for an aggregate of\n196,833 Private Placement Units for gross proceeds of $1,181,000 and 116,500 November 2025 Units for gross proceeds of $664,050.\n\n \n\nFor\nthe year ended December 31, 2025, the Company paid interest of $268,896 (December 31, 2024 - $2,082,530) to Cymbria. For the year ended\nDecember 31, 2025, the Company recognized a loss on the Debt Conversion of $5,982,434 (December 31, 2024 - $nil)\n\n \n\nDuring\n2024, EdgePoint and its affiliates, related parties of the Company, subscribed for 384,615 June 2024 Units as part of the June 2024 Financing.\nAs of December 31, 2024, EdgePoint and its affiliates beneficially owned 1,191,661 Common Shares and 685,815 warrants, representing approximately\n12.8% of the issued and outstanding Common Shares (approximately 18.8% on a partially-diluted basis assuming the exercise of all warrants\nheld by EdgePoint).\n\n \n\n(b)\nKey\nmanagement personnel are defined as members of the Board of Directors and certain senior management.\n\n \n\nKey\nmanagement compensation was related to the following:\n\n \n\n  \n\n**Year\nended**\n\n**December\n31,**\n \n\n  \n\n**2025**\n\n**$**\n  \n\n**2024**\n\n**$**\n \n\nSalaries and management fees \n 821,655  \n 1,373,388 \n\nSeverance and transition costs \n 1,228,611  \n 1,168,729 \n\nSite operations and administration \n 1,479,430  \n 2,088,356 \n\nDirector fees, net of DSU fair value movements \n 183,482  \n 57,183 \n\nShare-based compensation \n 1,366,218  \n 1,252,483 \n\nTotal\ncompensation \n 5,079,396  \n 5,940,139 \n\n \n\nFor\nthe year ended December 31, 2025, the Company incurred $1,228,611 in severance and transition costs related to the departure in January\n2026 and July 2025 of the Company’s former Chief Executive Officer and Chief Financial Officer, respectively. For the year ended\nDecember 31, 2024, severance and transition costs of $1,168,729 relate to the retirement of the Company’s former Chief Executive\nOfficer in December 2024.\n\n \n\nF-30\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**14.\nFAIR VALUE OF FINANCIAL INSTRUMENTS**\n\n \n\n*ASC\n820 - Fair Value Measurement*establishes a three-tier fair value hierarchy. The fair value hierarchy’s three tiers are based\non the extent to which inputs used in measuring fair value are observable in the market, and are as follows:\n\n \n\n \nLevel\n1:\nQuoted\nprices (unadjusted) in active markets for identical assets or liabilities;\n\n \n \n \n\n \nLevel\n2:\nInputs\nother than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and\n\n \n \n \n\n \nLevel\n3:\nOne\nor more significant inputs used in a valuation technique are unobservable in determining fair values of the asset or liability.\n\n \n\nDetermination\nof fair value and the resulting hierarchy requires the use of observable market data whenever available. The classification of an asset\nor liability in the hierarchy is based upon the lowest level of input that is significant to the measurement of fair value.\n\n \n\nThe\ncarrying value of cash and cash equivalents, trade payables and accrued liabilities approximate their fair value due to their short-term\nnature and therefore have been excluded from the table below. A summary of the carrying value and fair value of other financial instruments\nwere as follows:\n\n \n\nSCHEDULE\nOF CARRYING VALUE AND FAIR VALUE OF OTHER FINANCIAL INSTRUMENTS\n\n  \n  \nDecember\n31, 2025  \nDecember\n31, 2024 \n\n  \nClassification \n\n**Carrying**\n\n**Value**\n\n**$**\n  \n\n**Fair\n\nValue**\n\n**$**\n  \n\n**Carrying**\n\n**Value**\n\n**$**\n  \n\n**Fair\n\nValue**\n\n**$**\n \n\nDSU liability(1) \nLevel 1 \n 373,392  \n 373,392  \n 941,664  \n 941,664 \n\nVehicle financing(2) \nLevel 2 \n 286,223  \n 286,223  \n 246,137  \n 246,137 \n\nMortgage payable(2) \nLevel 2 \n 1,333,354  \n 1,333,354  \n -  \n - \n\nTerm loan(3) \nLevel 3 \n -  \n -  \n 18,983,212  \n 20,862,478 \n\nNSR option liability(4) \nLevel 2 \n 2,750,000  \n 2,750,000  \n 2,750,000  \n 2,750,000 \n\n \n\nNotes:\n\n \n\n(1)\n\n \n\nFor\nDSU liability, the fair value of the DSUs is measured using the closing price of the Company’s\nCommon Shares at the end of each reporting period.\n\n \n \n\n(2)\nFor\nvehicle financing and mortgage payable, the fair values approximate carrying values as the interest rates are comparable to current\nmarket rates.\n\n \n \n\n(3)\nThe\nTerm Loan is carried at amortized cost. The fair value measurement of the Term Loan was based on an income approach.\n\n \n \n\n(4)\nThe\nfair value of the NSR options is determined using a valuation model that incorporates such factors as discounted cash flow projections,\nmetal price volatility, and risk-free interest rate. As the NSR options are exercisable entirely at the discretion of Cymbria and\nthe underlying projects are in the exploration stage, the fair value of the call and put on the options as at December 31, 2025,\nand December 31, 2024, is $nil.\n\n \n\nThe\nfollowing represents a summary of the Company’s future debt maturities based on the principal amounts outstanding for vehicle financing\nand mortgage payable at December 31, 2025:\n\n \n\nSCHEDULE\nOF FUTURE DEBT MATURITIES\n\n**2026**\n\n**$**\n  \n\n**2027**\n\n**$**\n  \n\n**2028**\n\n**$**\n  \n\n**2029**\n\n**$**\n  \n\n**2030**\n\n**$**\n  \n\n**Total**\n\n**$**\n \n\n 393,122  \n 361,203  \n 329,349  \n 312,682  \n 223,221  \n 1,619,577 \n\n \n\nF-31\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**15.\nSEGMENTED INFORMATION**\n\n \n\nThe\nCompany has identified its Chief Executive Officer as its Chief Operating Decision Maker (“**CODM**”). The CODM evaluates\nthe Company’s performance and segmented results based on Loss for the Year Before Other Items. The significant segment expenses\nreviewed by the CODM are consistent with the expense line items presented in Loss for the Year Before Other Items in the Company’s\nconsolidated statements of operations and comprehensive loss. The CODM uses Loss for the Year Before Other Items to assess segment performance\nagainst the Company’s planned results, and to allocate capital investment.\n\n \n\nThe\nCompany operates in one reportable operating segment being that of the acquisition, exploration and evaluation of mineral properties\nin three geographic segments, being Botswana, Barbados and Canada. The Company’s geographic segments are as follows:\n\n \n\nSCHEDULE OF INFORMATION ABOUT COMPANY’S GEOGRAPHIC SEGMENTS\n\n  \n\n**December\n31,**\n\n**2025**\n\n**$**\n  \n\n**December\n31,**\n\n**2024**\n\n**$**\n \n\nCurrent assets \n    \n   \n\nCanada \n 33,301,948  \n 4,066,121 \n\nBarbados \n 167,178  \n 89,446 \n\nBotswana \n 13,006,411  \n 3,462,676 \n\nTotal \n 46,475,537  \n 7,618,243 \n\nCurrent assets \n 46,475,537  \n 7,618,243 \n\n  \n    \n   \n\nExploration and evaluation assets \n    \n   \n\nBotswana \n 42,730,629  \n 8,846,821 \n\nExploration and evaluation assets  \n 42,730,629  \n 8,846,821 \n\nProperty, plant and equipment \n    \n   \n\nBotswana \n 9,312,414  \n 8,488,405 \n\nProperty, plant and equipment \n 9,312,414  \n 8,488,405 \n\n \n\n**16.\nCONTINGENT LIABILITIES**\n\n \n\nThere\nare no environmental liabilities associated with the Mines as at the acquisition dates as all liabilities incurred prior to the acquisitions\nare the responsibility of the sellers, BCL and TNMC. The Company has an obligation for the rehabilitation costs arising subsequent to\nthe acquisitions. As of December 31, 2025, there were no material rehabilitation costs for which the Company expects to incur, and management\nis not aware of or anticipating any contingent liabilities that could impact the financial position or performance of the Company related\nto its exploration and evaluation assets.\n\n \n\nF-32\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\n**17.\nINCOME TAXES**\n\n \n\nThe\nreported recovery of income taxes differs from amounts computed by applying the Federal statutory income tax rates to the reported loss\nbefore income taxes as follows:\n\n* *SCHEDULE\nOF FEDERAL STATUTORY INCOME TAX RATES\n\n  \n    \n    \n    \n   \n\n  \nYear\nended December 31, \n\n  \n\n**2025**\n\n**$**\n  \n\n**Percent**\n\n**%**\n  \n\n**2024**\n\n**$**\n  \n\n**Percent**\n\n**%**\n \n\nNet loss for the year before\ntax \n (59,086,325) \n    \n (42,420,283) \n   \n\nCanadian Federal Statutory tax rate \n (8,862,949) \n 15.00  \n (6,363,042) \n 15.00 \n\nLocal income taxes, net of federal benefit \n (2,692,067) \n 4.56  \n (1,474,885) \n 3.48 \n\nForeign tax effects \n    \n    \n    \n   \n\nBarbados \n    \n    \n    \n   \n\nStatutory tax rate difference\nbetween Barbados and Canada \n 159,853  \n (0.27) \n 196,625  \n (0.46)\n\nChange in valuation\nallowance \n 92,547  \n (0.16) \n 113,835  \n (0.27)\n\nBotswana \n    \n    \n    \n   \n\nStatutory tax rate difference\nbetween Botswana and Canada \n (2,438,733) \n 4.13  \n (1,926,699) \n 4.54 \n\nChange in valuation allowance \n 7,664,589  \n (12.97) \n 6,510,888 \n (15.35)\n\nOther adjustments \n -  \n - \n (455,547) \n 1.07 \n\nEffect of changes in tax laws or rates in\nthe year \n (61,107) \n 0.10 \n -  \n - \n\nChange in valuation allowance \n 3,893,937  \n (6.59) \n 2,847,454  \n (6.71)\n\nNon-taxable or non-deductible items \n    \n    \n    \n   \n\nNon-deductible\n(non-taxable) items \n (40,068) \n 0.07  \n 33,258  \n (0.08)\n\nLoss on term loan extinguishment \n \n1,371,088\n  \n \n(2.32\n) \n -  \n -\n\nStock-based compensation \n 912,910  \n (1.55) \n 518,113  \n (1.22)\n\nDeferred tax recovery \n -  \n -  \n -  \n - \n\n \n\nThe\nCompany has recorded a valuation allowance as the Company believes it is not more likely than not that the deferred tax assets will be realized in\nthe foreseeable future. The Company’s deferred tax assets and liabilities are comprised of the following:\n\n SCHEDULE\nOF DEFERRED TAX ASSETS AND LIABILITIES\n\n  \n    \n   \n\n  \nAs\nat December 31, \n\n  \n\n**2025**\n\n**$**\n  \n\n**2024**\n\n**$**\n \n\nDeferred tax assets \n    \n   \n\nNon-capital losses available\nfor carry-forward \n 25,676,838  \n 15,499,405 \n\nProperty, plant and equipment \n 688,645  \n 717,416 \n\nResource deductions \n 1,634,132  \n 1,142,853 \n\nNon-deductible interest \n 2,272,514  \n - \n\nDSU liability \n 100,181  \n 249,541 \n\nShare issuance costs \n 3,601,065  \n 1,282,390 \n\nOther \n 95,122  \n - \n\n Deferred tax assets  \n 34,068,497  \n 18,891,605 \n\nDeferred tax liabilities \n    \n   \n\nTerm Loan \n -  \n (152,537)\n\nProperty, plant and\nequipment \n (1,265,517) \n (715,673)\n\nDeferred\ntax liabilities \n (1,265,517) \n (868,210)\n\nNet deferred tax asset \n 32,802,980  \n 18,023,395 \n\nValuation allowance \n (32,802,980) \n (18,023,395)\n\nDeferred tax asset/(liability) \n -  \n - \n\n \n\nF-33\n\n \n\n \n\n \n\n**Notes\nto the Consolidated Financial Statements**\n\nFor\nthe years ended December 31, 2025 and 2024\n\n*(Expressed\nin Canadian dollars)*\n\n \n\nThe\nCompany has Canadian non-capital losses of approximately $35,680,514 (2024 - $25,742,976) available for deduction against future taxable\nincome, which if not utilized will expire between the years of 2039 and 2045. The Company also has Barbados losses of approximately $6,918,708\n(2024 - $5,531,343) which expire between 2029 and 2032. Losses in Botswana of $71,695,499 (2024 - $38,060,423) do not expire.\n\n \n\nThe\npotential tax benefit of the non-capital losses has not been recognized in these consolidated financial statements. The non-capital losses\nthat have not been recognized expire as follows:\n\n SCHEDULE\nOF NON-CAPITAL LOSSES\n\n  \n\nCanada\n\n$\n  \n\nBotswana\n\n$\n  \n\n**Barbados**\n\n**$**\n \n\n2029 \n -  \n -  \n 1,365,227 \n\n2030 \n -  \n -  \n 1,832,617 \n\n2031 \n -  \n -  \n 2,070,943 \n\n2032 \n -  \n -  \n 1,649,921 \n\n2039 \n 101,573  \n -  \n - \n\n2040 \n 351,131  \n -  \n - \n\n2041 \n 2,756,891  \n -  \n - \n\n2042 \n 3,402,293  \n -  \n - \n\n2043 \n 7,624,794  \n -  \n - \n\n2044 \n 6,996,987  \n -  \n - \n\n2045 \n 14,446,845  \n -  \n - \n\nIndefinite \n -  \n 71,695,499  \n - \n\n**Operating\nloss carryforwards**** **\n** ****35,680,514**** **** **\n** ****71,695,499**** **** **\n** ****6,918,708**** **\n\n** **\n\n**18.\nGENERAL AND ADMINISTRATIVE EXPENSES**\n\n \n\nDetails\nof the general and administrative expenses are presented in the following table:\n\n \n\nGENERAL\nAND ADMINISTRATIVE EXPENSES\n\n  \n    \n   \n\n  \n\n**Year\nended**\n\n**December\n31,**\n \n\n  \n\n**2025**\n\n**$**\n  \n\n**2024**\n\n**$**\n \n\nAdvisory and consultancy \n 153,148  \n 413,065 \n\nFiling fees \n 269,385  \n 517,488 \n\nGeneral office expenses \n 418,650  \n 564,473 \n\nInsurance \n 518,365  \n 326,193 \n\nProfessional fees \n 1,630,889  \n 1,322,957 \n\nSalaries and management fees \n 1,603,431  \n 2,058,366 \n\nSeverance and transition costs \n 1,228,611  \n 1,168,729 \n\nShare-based compensation \n 2,601,243  \n 1,245,974 \n\nTotal \n 8,423,722  \n 7,617,245 \n\n \n\nFor\nthe year ended December 31, 2025, the Company incurred $1,228,611 in severance and transition costs related to the departure in January\n2026 and July 2025 of the Company’s former Chief Executive Officer and Chief Financial Officer, respectively. For the year ended\nDecember 31, 2024, severance and transition costs of $1,168,729 relate to the retirement of the Company’s former Chief Executive\nOfficer in December 2024.\n\n \n\nF-34\n\n \n\n \n\n**Part\nIV**"}