Annual Report 2024

ANNUAL REPORT

A word from the Chairman 4

Arctic Minerals in brief 6

Projects in Sweden 7

Projects in Norway 17

Projects in Finland 19

Directors' report 21

Summary of financial

performance: 2020-2024 28

Income statements for the

Group and the Parent Company 29

Balance sheets for the Group

and the Parent Company 30

Change in equity 32

Cash flow statements for the

Group and the Parent Company 34

Disclosures and notes 35

Signatures 46

Auditor's report 47

Board of Directors 50

Glossary 54

Graphic design: ClearDesign.se

Photo/illustrations: Arctic Minerals, srip / Freepik.com (p. 6), sg-naturephoto.com / Shutterstock.com (p. 19)

Arctic Minerals AB (publ) CIN 56569-3602

The annual report and consolidated financial statements for the financial year 1/1/2024-31/12/2024.

The Board of Directors of Arctic Minerals AB (publ) CIN 556569-3602 ("Arctic Minerals",

"the Company" or "the Parent Company" and together with its subsidiaries "the Group")

("the Board of Directors") and the CEO present the following annual report and consolidated

financial statement for the Parent Company and the Group for 2024 ("the Annual Report").

Unless otherwise specified, all figures are presented as SEK thousand.

This Annual Report is a translation of the Swedish original. If there is any inconsistency between the Swedish and English versions, the Swedish version shall prevail.

3

ARCTIC MINERALS, ANNUAL REPORT 2024

metal content comprises 447,000 t of copper and 1,049 t of silver. 100% of the mineral resource estimate is classified as Inferred Resource. In addition to the announced mineral resource estimate, the Hennes Bay project also has extensive exploration potential, and we make the assessment that the current mineral resource estimate could be significantly expanded following additional drilling.

Through the acquisition of REEM, Arctic Minerals also gains control over the Swedish copper-gold-silver project Swan Lake in Norrbotten.

The project is promising, hosting several outcrops of copper-gold-silver mineralisations that need to be verified through additional drilling. The deposit is located on the same geological trend as Boliden's Aitik mine, one of Europe's largest copper mines.

As part of the deal, Arctic Minerals also gains access to REEM's management, which has many years of experience in the mining and exploration industry.

During 2024, Arctic Minerals completed the acquisition of the Australian company Rare Earth Energy Metals (REEM). This is a transformational deal for Arctic Minerals

and entails substantial value creation for the Company's shareholders.

The acquisition of REEM gives Arctic Minerals 100 percent ownership of the Hennes Bay copper and silver deposit in Sweden. In March 2025, the Company announced a mineral resource estimate for the project. The mineral resource for Hennes Bay amounts to 55.39 Mt with 1.0% Copper Equivalent (CuEq) (0.8% copper and 20.8 g/t silver), corresponding to 543,000 t CuEq (cut-off 0.8% CuEq). The total

Through the acquisition, Arctic Minerals has now positioned itself as a significant copper exploration company in the Nordic region, with five high-quality copper projects in Sweden, Norway and Finland. These assets combine two identified deposits, Hennes Bay and Bidjovagge, with a strong pipeline of advanced exploration targets at Swan Lake, Tavast and Kuusi. The current exploration portfolio provides us with considerable opportunities to create additional shareholder value going forward.

Stockholm, 20 May 2025

Peter Walker

Chairman of the Board of Directors of Arctic Minerals AB (publ)

5

Arctic Minerals is a Nordic mineral exploration and mining development company that focuses on identifying and developing the copper deposits of the future in Sweden, Norway and Finland.

With respect for the environment and local culture, we combine traditional "boots on

the ground" geology, the modern art of engineering, and the latest in technology to contribute to the Green Revolution.

Our objective is to develop the next generation of high-tech copper mines at the same time

as we extract critical minerals to contribute to sustainable development in the Nordic region.

Existing mineral resources and

drill-ready targets

Projects with the potential to be large-scale and high-grade deposits

Arctic Mineral's team has a demonstrated track record of creating shareholder value

Advantageous market conditions and stable political landscape

7

PROJECTS IN SWEDEN

Sweden is one of Europe's leading mining economies and has a long mining history. It is home to one of Europe's largest copper

producers (Boliden), an extensive infrastructure network, and proximity to end markets.

Sweden ranks among the top 20 leading mining jurisdictions globally. The Swedish government has a stated ambition to be a leader in the Green Industrial Revolution with an acceptance that mining is required to provide critical metals.

Sweden is considered to have very good exploration potential, with little or no modern exploration undertaken outside of known deposits.

Arctic Minerals has two copper projects in Sweden: Hennes Bay in Dalsland and Swan Lake in Norrbotten.

Picture 1: Hennes Bay and Swan Lake projects.

Picture 2: Hennes Bay: Geological environment and analogues.

The Hennes Bay Project, for which the Company is the sole owner, is located in the province of Dalsland in southwestern Sweden. The project comprises granted exploration permits covering a total of 322 km2. A further 80 km2 is under application.

The project is located in a largely unexplored part of the Grenville Orogeny, a mountain range formation that occurred one billion years ago and gave rise to world-class sediment-hosted copper deposits, well-known examples include Kamoa-Kakula and Tenke-Fungurumi (Democratic Republic of Congo) and White Pine (USA).

Hennes Bay mineral resource estimate

Arctic Mineral announced the maiden mineral resource estimate (MRE) for the Hennes Bay Project on 26 March 2025. Cube Consulting, an independent and competent legal entity, prepared and reported the MRE in accordance with the JORC code (2012).

The calculation of the MRE is based solely on the Dingelvik prospect and 62 drill holes

totalling 8,822 m completed by SGAB in 1982-1984. Arctic Minerals has completed detailing relogging and reassaying of the drill cores, and resurveyed drill hole collars to demonstrate the veracity of the historical data.

Picture 3: Map of the Dingelvik prospect (included in the mineral resource), other drilled prospects and local infrastructure.

Table: The Hennes Bay project's JORC-compatible mineral resource estimation with a sensitivity analysis for different cut-off values.

Mineral resource estimation is reported for the cut-off 0.8% CuEq. The totals can vary due to rounding. The above table is based on the assumptions referred to in the report Hennes-Bay-JORC-Mineral-Resource-Estimate.

The MRE for the Hennes Bay Project is 55.39 Mt at 1.0% CuEq (0.8% Cu & 20.8 g/t Ag) for a total 543,000 t CuEq metal content (above a 0.8% CuEq cut-off). The total metal content

comprises 447,000 t of copper and 36,990,000 ounces of silver (1,049 t of silver).

Growth potential

While the announcement of a maiden MRE for Hennes Bay is a significant milestone, the project has immense resource growth and exploration upside potential. Arctic Minerals believes the opportunity to significantly

expand on the MRE in the near to medium term is substantial.

The MRE announced on 26 March is based solely on the Dingelvik prospect, where mineralisation remains open in all directions. Extensive zones of mineralisation defined by historical drilling are located at several other prospects. The prospects Asselbyn,

Henneviken, Baldersnäs, Åsnebo and Härserud Norra, have not been included in the MRE.

With limited drilling, these prospects have the potential to be upgraded to the Inferred Resource category and added to the Hennes Bay MRE (Figure 4).

The drilled mineralisations located in the northern portion of Arctic Mineral's extensive land holding at Hennes Bay are interpreted to

Picture 4: The Hennes Bay Project - Geographic map of the Dingelvik prospect (included in MRE) and other prospects.

represent the distal part of a sediment-hosted stratiform copper mineral system ("SSC").

SSC mineral systems tend to form very large deposits and mineral districts. They represent the most important source of copper produced in the world after porphyry copper deposits and account for 20-25% of the global production and available reserves.

Arctic Minerals' exploration permit in the Dalsland province covers 322 km², and an additional 80 km² is under application. Less than 5% of the target horizon has been drill tested to date (Figure 5).

As mentioned above, the mineralisation at Dingelvik and the other known prospects is interpreted to represent the distal part of a SSC mineral system. This interpretation is due to the uniform mineralisation grades observed over such a large area. A preliminary geological reconstruction of the original rift basin also places the known mineralisation peripherally within this system. Identifying the proximal parts of the SSC mineral system is a priority given the potential for these target areas to host higher grade mineralisation (Figure 5 and Figure 6).

Mineralised outcrops have been mapped and sampled (with results up to 1.78% Cu & 40 g/t Ag) up to 17 km from the MRE.

Over the past two years, detailed relogging and reassaying of historical cores, extensive fieldwork, and thorough analysis of available geophysical data have confirmed the potential for substantial mineral resource growth and new discoveries through further targeted drilling in the Hennes Bay Project.

Picture 5: Dingelvik prospect - Geological profile 1550S

Picture 6: Dingelvik prospect - Geological profile 1900S

Picture 7: Isometric map showing the drilled prospects, mineralisation of outcrops, and interpreted scope of the target horizon for the sediment-hosted stratiform copper mineral system. Less than 5% of the potential contact has been drilled to date.

Picture 8: Hennes Bay Project - Exploration model.

Work plan going forward

The major milestone of delivering the maiden MRE for the Hennes Bay Project positions it as one of the fastest growing, near-surface copper and silver projects with genuine scale and substantial exploration upside in Europe.

Arctic Minerals' focus is to build on this very solid foundation and systematically demonstrate the Hennes Bay Project's full potential and value through targeted work programs and drilling.

The planned work program comprises five initial workstreams over the next two years:

• Dialogue with stakeholders

• Environment and culture

  • Baseline studies of flora, fauna and cultural heritage within the potentially affected areas

• Mineral resource expansion

  • Drill testing in the extension of the known mineralisation of the Dingelvik prospect

• Infill and extension drilling at the other prospects in the area to upgrade them to the Inferred Resource category

• Testing of the exploration model through the application of modern geophysics and discovery drilling:

  • Continued field mapping and geophysical surveys using modern techniques

  • Generation of regional targets and regional exploration drilling to discover higher grade zones of mineralisation in the proximal parts of the SSC mineral system

• Project development:

  • Detailed mine design and scheduling

  • Preliminary metallurgical testwork, enrichment plant and TSF location(s)

  • Preliminary economic assessment (PEA) to determine potential for a modern mine. A relatively large tonnage, high grades, and predictable ore body geometry make SSC deposits very attractive for large-scale mining operations

The Swan Lake Project in the southern Norrbotten region comprises two granted exploration permits covering approximately 218 km2 (Figure 9).

Northern Sweden has a well-established mining industry, with multiple base and precious metal mines currently operating in the Norrbotten and Skellefte Field ore districts. The Swan Lake Project is located

between these two historic ore districts, 20 km northwest of Boden.

The exploration permits form part of an earn-in agreement (EIA), where Arctic Minerals holds 51% of the project and has the right to receive up to 80% by spending a total of AUD 750,000 on the permits. Pursuant to the EIA, Arctic Minerals is solely responsible for funding all

activities on the permits up to completion of a feasibility study.

The project is located within the Proterozoic Norrbotten volcanic belt, which also includes the Aitik mine, one of Europe's copper mines, and the Laver Project, both owned by Boliden.

Recent research has shown that much of the mineralisation in Norrbotten appears to be controlled by deep deformation zones that dissect large parts of the crust in northern Scandinavia. While historic mining and exploration activities to date have centered around the known ore districts, the continuation of these structures outside the known mining areas remains largely unexplored.

The Swan Lake Project is characterised by a large-scale alteration system that has been delineated over tens of square kilometres and contains a historic occurrence of Cu-Au-Ag-Mo mineralisation as well as high-grade boulders of similar metal assemblage. A dumortierite-quartzite occurrence, previously drilled and trial mined to investigate its potential use as ornamental or gemstone, is

now interpreted to represent the upper parts of a porphyry-epithermal system, directly linked to stockwork Cu-Au-Ag-Mo mineralisation (Figure 10). Fieldwork has uncovered several occurrences of polyphase quartz sulphide stockwork veining in the area.

Based on the interpretation of geological mapping, rock-chip and soil sampling, and ground geophysical surveys completed by the JV partner, the project area is considered

highly prospective for epithermal-altered lithocap gold-silver and porphyry copper-gold style mineralisation.

Planned work programs at Swan Lake through the end of 2025 include field mapping, extension of soil sampling coverage, drone magnetics, and target prioritisation for electromagnetic (EM) and induced polarization (IP) geophysical surveys.

These work programs will substantially enhance the knowledge about the area, which is expected to lead to the generation of initial priority drill targets in 2026.

Picture 9 - Swan Lake Project in southern Norrbotten's high-potential copper-gold district.

Picture 10 - Swan Lake: Geological map, outcrops and soil sampling and ground magnetic survey results.

17

PROJECTS IN NORWAY

Arctic Minerals holds the mineral rights covering the ore zone in the Bidjovagge area. The Bidjovagge mine project is in Finnmark in northern Norway in the Kautokeino municipality, which is home to approximately 3,000 residents. The closest town is Alta,

which lies approximately 130 kilometers to the north of the mining area.

Ore extraction in the area has occurred sporadically, most recently between 1985 and 1991 by Outokumpu. Arctic Minerals holds a 100% interest in the mining and exploration permits that the Company has for the area.

In 2021, an indicated mineral resource was prepared pursuant to the JORC code (2012) comprising 3.3 Mt of grading 1.27 g/t gold and 0.97% copper. This corresponds to metal content of 4,180 kg of gold and 32,200 t of copper. The mineralisation also identifies potential for cobalt and tellurium.

The Company considers there to be excellent potential to substantially increase the mineral resource through further exploration. A recent study of old drill cores has identified three new areas with exceptionally high grades of

gold and copper. These include the following sections:

• 18.0 m @ 2.21% Cu & 33.8 g/t Au

• 27.3 m @ 3.11% Cu & 0.58 g/t Au

• 15.0 m @ 2.0% Cu & 8.55 g/t Au

Picture 11. Bidjovagge gold-copper project in Finnmark in northern Norway.

19

PROJECTS IN FINLAND

Arctic Minerals owns 100% of the exploration permit Kuusi at the Peräpohja copper project in Finnish Lapland.

Arctic Minerals has been exploring for copper in Peräpohja since 2017 and has found widespread copper mineralisation in both outcrops and boulders. Exploration to date includes core drilling, geophysical surveys, exploration for ore boulders and mineralised outcrops, and geological mapping.

Tavast is located in an almost geographically unexplored and sparsely populated part of central Finland. Boulders in the area have been found to assay up to 4.4% Cu.

The area has previously only been explored around 25 years ago by a geologist who found

boulders assaying up to 4.2% Cu and also some gold/silver-bearing boulders with up to 5.1 g/t of gold and 35 g/t of silver. Some of the boulders were found in an area that is now inside a wind farm, but there is still a considerable area open for exploration on the western side of the wind farm. The most

prospective area is covered by Arctic Minerals' Tavast reservation (at year-end 2024).

The reservation covers an area of 444 km2 approximately 120 km southeast of Oulu.

Arctic Minerals' geologists have found a number of copper-, gold- and silver-bearing boulders in the area outside the wind farm but within the Tavast reservation. These boulders assayed up to 4.4% Cu. One copper-rich boulder also assayed 0.56 g/t Au and another assayed 17 g/t Ag. The company believes that the boulders' source may be local.

The Board of Directors and the CEO of Arctic Minerals AB (publ), CIN 556569-3602, hereby present the annual report and consolidated financial statement for the financial year 1/1/2024-31/12/2024.

The Group consists of the Parent Company Arctic Minerals AB, 556569-3602, ("Arctic Minerals", "the Company" or "the Parent Company" and together with its subsidiaries

"the Group") and the wholly owned subsidiaries Arctic Gold AB, 556798-9420 ("Arctic Gold"), Arctic Minerals Exploration AB, 556739-6717, ("Arctic Minerals Exploration"), Arctic Exploration AS, 926 646 029, ("Arctic Exploration"), Rare Earth Energy Metals Pty Ltd 657 977 136 ("REEM Ltd"), and Rare Earth Energy Metals Sweden AB, 559425-2404, ("REEM AB"). Arctic Minerals is listed on Nasdaq OMX First North Growth Market under the ticker symbol ARCT.

Arctic Minerals' function is to be the owner of subsidiaries and is not directly involved in exploration. The Company is responsible for obtaining capital for the business and providing administrative services to the

subsidiaries, through which Arctic Minerals will fulfill the formal Board and Group functions and serve as an internal bank.

Arctic Minerals Exploration is a modern exploration company with considerable knowledge about and focus on Finland. At the end of 2024, Arctic Minerals Exploration in Finland had a registered exploration reservation corresponding to 7.7 km2 (773 hectares) in

total and an application for an ore exploration permit for 17.9 km2 (1,790 hectares).

Arctic Gold is operational within exploration and mine development in Norway and focuses on development of new mining operations in the Bidjovagge field in northern Norway. At the

end of 2024, the Company had 16 extraction rights corresponding to a total of 7.9 km2 (790 hectares) and eight exploration permits corresponding to 15.1 km2 (1,506 hectares).

Arctic Exploration is operational within exploration in Norway and focuses on project development. At the end of 2024, the Company had nine exploration permits corresponding to

15.3 km2 (1,530 hectares).

REEM Ltd has a number of exploration permits in Sweden. At the end of 2024, the Company had 13 exploration permits corresponding to 540 km2 (54,000 hectares).

REEM AB is operational in Sweden. The Company currently has no registered exploration permits.

• On 8 January 2024, Arctic Minerals announced in a press release that the Directorate of Mining for Norway (Direktoratet for mineralforvaltning, DMF) had granted the Company a prolongation of its oldest extraction permits at the Bidjovagge gold-copper project in Norway. This means that all of the Company's extraction permits in Bidjovagge now are valid until December 2028. For more information, refer to the Bidjovagge gold-copper project in Norway.

• On 9 April 2024, Arctic Minerals announced in a press release that there had recently been positive political developments in Norway that the Company considers very helpful for its Bidjovagge gold-copper project in Norway. As a result of these developments, Arctic Minerals began to plan a new drilling program at Bidjovagge. During the summer of 2024, work then began on the new drilling program in that Arctic Minerals submitted detailed plans for the program to the Norwegian mineral authorities. The program targets the

  western limb and also the northern part of the geological "anticline" structure that hosts the Bidjovagge mineralisations.

  The Company also held meetings during the summer with representatives for the Norwegian Ministry of Trade, Industry and Fisheries to discuss the Bidjovagge Project. For more information, refer to the

  Bidjovagge gold-copper project in Norway.

  • On 7 October 2024, Arctic Minerals announced that the Company had acquired Rare Earth Energy Metals. For more information, see Acquisition of Rare Earth Energy Metals.

  • On 7 October 2024, Arctic Minerals announced that the Company had completed a directed issue of units, raising proceeds of approximately SEK 13.6 million for Arctic Minerals before issue costs. For more information, see Directed issues of units in Arctic Minerals.

  • On 5 November 2024, Arctic Minerals announced that the Company had acquired all shares in Rare Earth Energy Metals. For more information, see Acquisition of Rare Earth Energy Metals.

  • On 6 November 2024, Arctic Minerals issued a notice to attend an extraordinary general meeting that would be held on 9 December 2024. At the meeting, Robert Behets and Peter George were proposed for election to the Board of Directors of Arctic Minerals. For more information, see New directors of the Board of Directors of Arctic Minerals.

  • On 18 November 2024, Arctic Minerals announced that the Company is establishing an advisory board consisting of Lars-Eric Aaro, Duncan Large and Erik Lundstam. For more information, see Advisory Board.

  • On 22 November 2024, Arctic Minerals presented an updated company presentation in which the Company described in more detail the Swedish projects obtained through the acquisition of Rare Earth Energy Metals.

  • On 9 December 2024, Arctic Minerals held an extraordinary general meeting (EGM) at which Robert Behets and Peter George

    were elected to the Board of Directors of Arctic Minerals. The EGM also resolved on a set-off issue and a directed issue totaling approximately SEK 2.5 million before issue costs. The EGM also resolved on a 1:10 reverse share split of the shares of Arctic Minerals. For more information, see Extraordinary General Meeting of Arctic Minerals.

    SIGNIFICANT EVENTS AFTER THE END OF 2024

• On 3 February 2025, Arctic Minerals announced that Jonas Lindholm, a Swedish-Australian entrepreneur and international business facilitator, was joining Arctic Minerals' Advisory Board. For more information, see Advisory Board.

• On 26 February 2025, Arctic Minerals announced that the Board of Directors had resolved on the record date for the reverse share split: 5 March 2025. Through the reverse split, ten (10) existing shares were consolidated into one (1) share

  (Sw. sammanläggning 1:10).

• On 26 March 2025, Arctic Minerals announced a mineral resource estimation for the Hennes Bay copper-silver project in Sweden ("Hennes Bay" or "the Project"). The mineral resource estimation for Hennes Bay is 55.39 Mt with 1.0% Copper Equivalent ("Cu Eq") (0.8% Cu and 20.8 g/t Ag), corresponding to 543,000 t of Cu Eq (cutoff 0.8% Cu Eq). The total metal content comprises 447,000 t Cu and 1,049 t Ag.

During 2024, the Group's net revenue amounted to SEK 0.0 million (0.0), and profit after tax amounted to SEK -5.8 million (-11.3).

The lower loss compared to the previous year was primarily attributable to decreased expenses for the operations.

Consolidated equity amounted to SEK 102.7 million (48.7) as per 31 December 2024, which corresponds to an equity/assets ratio of 92 per cent (85). Cash and cash equivalents amounted at the same time to SEK 13.0 million (4.6). The change in cash and cash equivalents during the year constitutes cash flow from operating activities after the change in working capital of SEK -4.5 million (-10.1), from

investing activities of SEK -1.0 million (-0.0), and from financing activities SEK 13.9 million (9.2).

Intangible assets in the subsidiary Arctic Gold consist of actual costs incurred for work and exploration in the form of core drilling, geophysics, chemical analyses, etc. The Board of Directors believes there is cause to keep these assets at their carrying amounts as long as the permits are valid. Capitalised expenditure amounts to a total of SEK 30.9 million.

In the subsidiary Arctic Minerals Exploration, intangible assets consist of capitalised expenditure for consultants for the review and interpretation of geodata as well as

for field work and sampling. Capitalized expenditure amounts to a total of SEK 2.3 million. The Board of Directors believes the carrying amount is justified given the Group's exploration portfolio in Finland. The subsidiary Arctic Minerals Exploration will continue until further notice in the role of operator in the exploration in Finland.

Intangible assets in the subsidiary Rare Earth Energy Metals Pty Ltd consist of capitalised expenditure for the Swedish projects Hennes Bay and Swan Lake.

Arctic Minerals is a junior mining company that does not generate its own revenue. The Company is therefore dependent on external financing. The Board of Directors works with a range of alternatives to ensure additional financing for the Company in the short and long term. As per 31 December 2024, the

Company's cash amounted to SEK 13.0 million.

On 7 October 2024, Arctic Minerals announced the acquisition of all shares in the Australian company Rare Earth Energy Metals (REEM).

The acquisition of all shares in REEM was concluded on 5 November 2024. The purchase price was paid in the form of seller promissory notes of approximately SEK 45.0 million, which were offset against 166,485,291 newly issued shares in Arctic Minerals at a subscription price of SEK 0.27 per share.

Through the acquisition of REEM, Arctic Minerals gains control over two copper projects in Sweden, Hennes Bay and Swan Lake.

Hennes Bay is a copper-silver deposit with a historic mineral resource of SEK 25 Mt, which the Company assesses could be significantly expanded through further drilling. Swan Lake is a promising discovery with several outcrops of copper-gold-silver mineralisations located in the same geological area as Boliden's Aitik mine, one of Europe's largest copper mines.

During the second half of 2024, the Company conducted a directed new issue of units of approximately SEK 13.6 million before issue costs ("First Directed Issue").

The First Directed Issue of units was resolved by the Board of Directions pursuant to the authorisation granted by the Company's Annual General Meeting on 28 June 2024.

The First Directed Issue amounted in total to 28,319,981 units, where one unit corresponds to two shares and one warrant of series TO5. In total, 56,639,962 shares and 28,319,981 warrants were issued for a total of SEK 13,593,590.88 before issue costs.

During the second half of 2024, the Company also conducted a set-off issue, which was resolved by the Company's Extraordinary General Meeting on 9 December 2024, through which debt of approximately SEK 2.0 million was offset ("Offset Issue").

The Offset Issue amounted in total to 4,166,664 units, where one unit corresponds to two shares and one warrant of series TO5. In total, 8,333,339 shares and 4,166,664 warrants were issued, through which debt of SEK 1,999,999.2 was offset.

During the second half of 2024, the Company also conducted a directed new issue of units resolved by the Company's Extraordinary General Meeting on 9 December 2024 of approximately SEK 0.5 million before issue costs ("Second Directed Issue").

The Second Directed Issue amounted in total to 1,041,666 units, where one unit corresponds to two shares and one warrant of series TO5. In total, 2,083,332 shares and 1,041,666 warrants were issued for a total of SEK 4,999,999.68 before issue costs.

The Group has an expressed strategy of keeping Arctic Minerals' fixed costs low and relies on a number of key competences in management and the Board of Directors.

Arctic Minerals offers management and administrative functions for the entire Group. For 2024, revenue for invoiced costs at subsidiaries of SEK 1.2 million (2.1) was reported, the Parent Company's costs amounted to SEK 7.7 million (13.6), and profit

after tax amounted to SEK -8.4 million (-11.5).

Business and ownership is always associated with risk-taking, and Arctic Minerals is no exception. The business Arctic Minerals conducts offers great opportunities but

also entails significant risks. Arctic Minerals' operations must be evaluated against the risks, costs and difficulties that companies active in exploration often face.

The risks in an exploration company are primarily linked to the outcome of and costs for exploration and the price development on the metal market but also permit matters related to surveys, enrichment and the

environment. Obtaining the necessary permits and rights in Finland and Norway is associated with risks for the Company. All estimates of extractable mineral resources in the ground are largely based on probability assessments. There are therefore no guarantees that estimated mineral resources will remain unchanged over time.

In Norway, the Planning and Building Act gives the municipal council the sole right to decide on the Planning Program and Zoning Plan after

consultations. An additional factor to consider is that the municipal council's composition can change every four years following national elections. The Norwegian government highly values the local community's right to decide itself on the activities carried out in the municipality.

External factors such as supply and demand and economic downturns and booms can have an impact on operating costs, metal prices on the global market, and share valuation. The Company's future revenue and share valuation could be impacted by these factors, which are beyond the control of the Company.

Arctic Minerals' organisation consists of a limited number of individuals, and the Company's key staff have considerable competence and extensive experience in the Group's business area. The loss of one or several key staff members could have an adverse impact on the business and its performance.

Through its business, the Company is exposed to a number of financial risks, such as currency risk, interest risk, price risk, credit risk, liquidity risk, and cash flow risk. The Company's overarching risk management policy focuses on the unpredictability of the financial markets and strives to mitigate potential unfavourable effects on the Company's financial performance.

Purchases in the Group occur primarily in EUR, SEK and NOK.

Global prices for metals are experiencing historically large fluctuations. If metal prices fall in the long term, this could have a negative impact on the value of the Company's project portfolio and influence investors' decisions

on whether to buy the Company's shares or participate in the financing of the business..

Liquidity risk is the risk that payment obligations cannot be met due to insufficient liquidity. Management closely follows rolling forecasts for the Company's liquidity reserve.

The Company needs new capital continuously for further exploration. The Company's possibility to meet future capital needs

is highly dependent on how the business develops, and there are no guarantees that Arctic Minerals will succeed in raising new capital even if the business develops positively. This is determined, among other things, by the general situation for venture capital.

The Group's objective for its capital structure is to secure its ability to be a going concern in order to generate returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure to keep capital expenditure down. To maintain or adjust the capital structure, Arctic Minerals can change potential dividends paid to the shareholders, repay capital to shareholders, issue new shares, or sell assets to reduce the debt.

The ongoing war in Ukraine and the changed situation related to security policy has not affected Arctic Minerals, but the Board of

Directors and management are following the course of events to evaluate and manage potential risks.

The Board of Directors is working continuously to secure long-term financing for the Company to ensure a going concern. The Company is dependent on external financing to be able to carry out the development of the Company's project for full-scale mines or to sell the projects. If sufficient financing to continue operations is not obtained, there is a risk

that this will affect the business. Overall, this means that there are significant uncertainty factors that could lead to strong doubt that the Company could continue according to the going concern principle. This could primarily impact the value of the intangible assets.

The number of outstanding shares in the Company at the end of the period amounted to 400,027,206 (166,485,291).

The share capital in Arctic Minerals amounted

share in Arctic Minerals during the subscription period at a subscription price of SEK 0.31

per share. The subscription period is 15-26 September 2025.

After the reverse share split in Arctic Minerals in March 2025, the conditions for warrants

of series TO5 have been restated. After restatement, ten (10) warrants of series TO5 entitle the holder to subscribe to one (1) new share in Arctic Minerals during the subscription period at the subscription price of SEK 3.1

per share. The subscription period is 15-26 September 2025.

Since 29 November 2010, Arctic Minerals' share has been traded on Nasdaq OMX First North Growth Market, Stockholm, under the ticker symbol ARCT. The ISIN code for the share is SE0024172779.

Parent Company

Non-restricted equity at the disposal of the Annual General Meeting:

The Company has a total of 32,088,729 outstanding shares of series TO5. As per 31 December 2024, one (1) warrant of series TO5 entitled the holder to subscribe to one (1) new

The Board of Directors proposes that the non-restricted equity at the disposal of the Annual General Meeting be carried forward.

The income statements and balance sheets, the change in equity, the cash flow statement

and the notes below present the Group's and the Parent Company's performance and

position in general. All amounts are expressed

in SEK thousands (TSEK) unless otherwise specified.

The historic performance of Arctic Minerals for the period 2020-2024 is presented below.

Accompanying notes are an integral part of the financial statements.

Accompanying notes are an integral part of the financial statements.