Annual Report 2025

ANNUAL REPORT

CEO comment: A year

of significant advancements

and strong momentum 4

Comment from the Chairman 6

Arctic Minerals in brief 8

Projects in Sweden 10

Projects in Norway 25

Projects in Finland 26

Directors' report 28

Summary of financial

performance 2021-2025 34

Income statements for the Group

and the Parent Company 35

Balance sheets for the Group

and the Parent Company 36

Change in equity 38

Cash flow statements for the

Group and the Parent Company 39

Disclosures and notes 41

Signatures 51

Auditor's report 52

Board of directors 56

Graphic design and print: https://www.ClearDesign.se

Photo / illustrations: BJP7images / Shutterstock.com (p 10, 19), TSViPhoto / Shutterstock.com (p 24) and Wirestock Creators / Shutterstock.com (p 26).

Arctic Minerals, unless otherwise stated.

Arctic Minerals AB (publ) CIN 556569-3602

The annual report and consolidated financial statements for the financial year 1/1/2025-31/12/2025.

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 2025 ("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 2025

The past year marked a truly transformational period for Arctic Minerals and was characterised by substantial strategic and operational progress. We have successfully strengthened our position as a leading Nordic exploration and development company and built a robust foundation for continued advancement and long-term value creation.

Key milestones at the flagship Hennes Bay copper-silver project include the definition of a maiden JORC Mineral Resource Estimate ("MRE"), a positive conceptual underground mining study, and a significant expansion of the project's exploration potential through cutting-edge geophysical work. Recent

airborne magnetotelluric surveying and magnetic vector inversion modelling conducted in the second half of 2025 indicate that mineralisation in several target areas may be connected and extends beyond previously drilled zones. This has resulted in multiple new priority targets for continued exploration. The current MRE of 55 Mt @ 1.0% CuEq at Hennes Bay is therefore considered an excellent starting point with substantial potential for near-term growth.

We now start the work on our 3-phase drilling campaign to bring the known prospects into the MRE, test the newly discovered anomalies discovered through geophysics and to increase the confidence in the MRE. In terms of the broader portfolio, the Company also advanced its Swan Lake project in northern Sweden through ongoing fieldwork and geophysical surveys. Results from an Induced Polarisation (IP) survey conducted during the second half of the year, announced early 2026, confirmed

the potential for epithermal gold-silver and porphyry copper-gold mineralisation, supporting and further refining priority drill

targets. Looking ahead, the Company is also evaluating opportunities and plans to intensify its activities in Norway and Finland.

With over 30 years in the mining industry,

I view Arctic Minerals as one of the most compelling opportunities I have encountered, given the strength of the project portfolio, its geological potential and the current market context. Since the strategic transformation initiated late 2024, as Arctic Minerals acquired Rare Earth Energy Metals, the Company has undergone significant organisational and operational changes, emerging as a more focused and capable exploration company with a strengthened asset base.

With clear direction and strong momentum, we are now advancing our portfolio with

Hennes Bay as the flagship, and I believe Arctic Minerals is well positioned to play a meaningful role in supporting Europe's long-term supply of critical raw materials. I am very proud of what we have achieved so far and look forward to leading the Company into its next chapter.

Peter George

Managing Director and Chief Executive Officer

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Looking back at 2025, Arctic Minerals has made substantial progress in its development. The year has been characterised by significant change, with a deliberate focus on strengthening our operational leadership, organisational capacity, and strategic direction. Entering 2026, we have a strong platform to continue advancing the Company and its project portfolio into its next phase.

An important part of this progress has been strengthening of the Company's leadership and governance structure. Peter George has recently assumed the role of Managing

Director and Chief Executive Officer ("CEO"), with Erik Lundstam - previously part of the Advisory Committee - appointed Deputy CEO and Chief Geologist. Together, they bring a depth and breadth of expertise that is difficult to replicate, combining extensive

experience across mineral exploration, project development, and mine operations in Sweden and globally.

In parallel, several additional changes have been made at Board, Advisory Committee, and Executive Management levels. These include the appointment of Joakim Lidfeldt as a new Board member and the addition of Pierre Olsson to the Advisory Committee.

Both bring vast financial sector and global capital markets experience. In addition, Johan Spetz has been appointed Chief Financial Officer and will join the Company during the spring. He has a background in equity research and commodity markets, including senior roles at Pareto Securities and Goldman Sachs, and brings strong experience from the Swedish public equity

market. Bino Drummond has also recently been appointed as Chief Sustainability Officer. Bino Drummond is a highly experienced political and communications professional with a demonstrated history of working in

government, private and public industry. Skilled in Public Affairs, Political Communication, Political Strategy, Political Science, and Government, he brings extensive political and industry markets experience to the Company's management team. He has previously been Chairman of the Municipal Board in the Swedish town of Norrtälje, a Senior Advisor with Prime Weber Shandwick and a Member of Parliament in the Swedish Government.

Alongside organisational changes, the Company has made solid operational progress across the entire project portfolio. At the flagship Hennes Bay project, exploration activities have yielded extremely positive results and strengthened confidence in the project's scale and long-term potential. The key priority moving forward is to systematically demonstrate the full potential and value of Hennes Bay through targeted work programs and drilling, as well as continuing to advance the Company's other projects in the Nordics.

Looking ahead, we expect 2026 to be another busy and productive year, with continued progress across multiple workstreams spanning all projects in our portfolio.

7

The broader market environment remains supportive, with long-term demand for copper, silver and other strategically important metals underpinned by electrification, infrastructure development and expanding technology use.

In parallel, growing focus on securing resilient supply chains continues to elevate the strategic importance of critical raw materials in Europe and the Nordics, reinforcing the relevance of projects such as ours.

In this market context, Arctic Minerals is very well positioned in both the short and long term. With a solid foundation, strong momentum, and a clear long-term direction, we remain focused on advancing our flagship Hennes Bay project into the development phase, whilst continuing to progress exploration activities

at the Company's other projects to deliver new discoveries and increased market value.

Robert Behets Chairman of the Board

Arctic Minerals is a Nordic mineral exploration and development company focused on copper and other strategically important minerals in the Nordic region. As a leading player in the new generation of Nordic mining companies, Arctic Minerals identifies and develops new

discoveries that strengthen Europe's development and secure access to the metals and minerals that power the future. The Company is listed on Nasdaq First North Growth Market Stockholm (ticker: "ARCT").

Location map of Arctic Minerals' Projects.

Arctic Minerals offers investors an attractive exposure to copper and other strategically important critical minerals that are essential for Europe's electrification, infrastructure development and long-term resource self-sufficiency. As demand for critical raw materials accelerates, with copper among the most

essential metals for electrification and infrastructure, the Nordic countries are emerging as one of Europe's most important regions for new mineral discoveries.

With an exceptionally strong exploration portfolio covering some of the most prospective

areas across the Nordics, an experienced management team with deep geological knowledge, and highly favourable market dynamics, Arctic Minerals is well positioned to deliver significant long-term value.

World-class exploration portfolio with exceptional mineral prospects

• Strong pipeline of copper-focused projects across the Tier-1 mining jurisdictions of Sweden, Norway and Finland.

• Flagship copper-silver project Hennes Bay with a MRE of 55 Mt at 0.8% Cu and 21 g/t Ag and significant upside potential across a largely untested mineralised system.

• Diversified portfolio combining two advanced stage assets with greenfields exploration projects, positioned to deliver near-term discoveries and long-term growth.

  Significant expansion potential and resource growth opportunities

• Strong potential for resource expansion beyond the currently defined MRE at Hennes Bay through further drilling.

• Large (4142) package remains largely untested, with less than 5% of the prospective area drilled, highlighting substantial upside potential.

• Extensive, under-explored land position with multiple drill-ready targets and a pipeline

  of prospects, including potential for other critical metals.

  Exposure to major structural changes driving long-term demand

• Accelerating global electrification and energy transition are driving a structural copper deficit and the need for new long-life supply.

• EU's Critical Raw Materials Act and growing focus on supply security strongly support Nordic exploration and local sourcing of critical minerals.

• Nordic location provides access to skilled workforce, renewable power, strong infrastructure and key European end-markets.

  Experienced team with proven track-record of creating value

• Leadership and technical team with extensive mining experience from successful exploration projects as well as large scale mining operations.

• Strong track record of value creation through mineral development and project execution.

• Supported by a highly experienced advisory board including recognised industry veterans and mining experts.

Arctic Minerals has two projects located in Sweden, one of Europe's major mining economies. The country has a long mining

history and is home to one of Europe's largest copper producers (Boliden), with proximity

to end markets. Sweden has an extensive infrastructure network (roads, rail, ports, air, communications), hydro and nuclear base load power.

The country ranks in the Top 10 mining jurisdictions globally, with a government that is supportive of mining ad low corporate taxes

(20.6%) and low exploration and mining permit fees. The government has a stated ambition to be a leader in the Green Industrial Revolution with an acceptance that mining is required to provide critical and strategic metals.

In terms of exploration potential, Sweden has massive metal endowment and little to no modern exploration has been undertaken outside of known deposits. Arctic Minerals' first-class team of explorers and developers have extensive operating experience and recent success in Sweden.

The Company's 100% owned Hennes Bay copper-silver project, comprising 14 granted exploration permits covering ~414km2, is located in the Dalsland region of southwest Sweden.

The Project is located in a largely unexplored part of the Grenville Orogeny - mountain building system which gave rise to world class sediment-hosted copper deposits

including Kamoa-Kakula and Tenke-Fungurumi (Democratic Republic of Congo) and White Pine (USA).

Copper mineralisation occurs primarily as chalcopyrite disseminations at the contact between a quarzitic sandstone and overlying shales of the 1.2-1.0Ga Dalgroup formation.

The sedimentary rocks are generally weakly folded, resulting in a gentle dip and undulous geometry of the ore horizon throughout most of the region. Both historic and recent fieldwork have identified the copper mineralised horizon at numerous locations throughout the project area, confirming the large scale of the system.

Recent fieldwork and assessment of historic data have shown the copper mineralisation to be of variable thickness, ranging from several meters to locally up to 11.5m. Re-assaying

of historic drill core has further highlighted the presence of several critical metals e.g. gallium, germanium, vanadium, and rare earth elements, that were previously not tested for.

Hennes Bay project located in the Dalsland region of Sweden.

Hennes Bay: Cross section at the Dingelvik prospect showing the extensive 'blind' potential for continuity of mineralisation underneath the granite nappe.

Hennes Bay: Dingelvik prospect historic drilling.

The Dalgroup Formation is locally covered by thin sheets of granitic thrusts that often form prominent topographic highs in the region.

Historic drilling through the thrust and recent fieldwork have demonstrated the copper mineralisation at the Dingelvik prospect continues underneath these granites, thereby further extending the project's scale (Figures).

In March 2025, Arctic Minerals presented a maiden MRE for Hennes Bay at 55.39Mt at 1.0% CuEq (0.8% Cu & 20.8g/t Ag) for a total 543,000t Copper Equivalent ("CuEq")

contained metal (above a 0.8% CuEq cut-off). The total metal content comprises 447kt of copper and 37.0Moz of silver.

The Company engaged Cube Consulting, a highly regarded Australian independent consulting firm, to prepare and report the

maiden MRE for Hennes Bay in accordance with the JORC Code (2012).

The MRE is based on the Dingelvik prospect where 62 drill holes for 8,822m of drilling were completed by 1984 by SGAB. Arctic Minerals has completed detailing relogging and reassaying of the drill core, and resurveying of drill hole collars, for a representative subset of historical drill holes to demonstrate the veracity of the historical data.

Table: Hennes Bay Maiden JORC Compliant Mineral Resource Estimate and cutoff grade sensitivity.

Growth potential

The MRE doesn't include five other outcropping prospects (Asselbyn, Henneviken, Baldersnäs, Åsnebo and Härserud Norra) with extensive zones of mineralisation defined by historical drilling.

The MRE is interpreted as the distal part of a sediment-hosted stratiform copper system ("SSC") with less than 5% of the aerially extensive target horizon having been drill tested within the 414km2 tenement package.

SSC mineral systems favor the formation of very large deposits and mineral districts, and 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 reserves.

Surface outcrops of the same mineralised contact have been mapped and sampled (grab sample results including 1.78% Cu & 40 g/t Ag) up to 17km from the MRE (Figure).

Interpretation of historical and recent airborne geophysical data over the Dalsland formation has provided substantial insights to the stratigraphy and structural evolution in the region which have been incorporated into the Company's conceptual geological model and exploration targeting criteria for Hennes Bay. Interpretation of whole rock

lithogeochemistry from drill core and outcrops was also completed to aid in distinguishing key stratigraphic markers, as well as to

give a preliminary assessment of vectoring methodologies.

Hennes Bay: Historical resource areas (yellow) represent <5% drill testing of prospective target horizon.

Highly successful geophysical campaign

The results of the recently completed airborne magneto-telluric ("MMT") survey and magnetic vector inversion ("MVI") modelling of historical airborne magnetic data at Hennes Bay were reported in January 2026. The highlights of the survey were as follows:

• Highly successful geophysics campaign generated multiple high-priority targets, including extensions to known prospects and new near surface and at depth anomalies, noting that the MMT survey

  covered only ~33% of the overall 414km2 tenement package (Figures on next page).

• The combined area of the new targets is 10 times larger (by surface extrapolation) than the footprint of the existing 55.39Mt MRE at Dingelvik.

• Integration of MMT and MVI data has delivered high confidence targeting.

• Next steps include ground validation and drill testing.

• Further MMT surveys are planned for 2026..

Map of new target zones delineated by integration of MMT and MVI data at Hennes Bay.

Map showing the Hennes Bay geology, resource (Red), prospects (Yellow) and recently completed MMT survey grid lines.

Positive underground mining conceptual study

The findings of the UG Conceptual Study (the "Study") announced in September 2025, clearly demonstrated the potential for a large-scale UG mining operation at Hennes Bay.

The Study has confirmed the technical viability of mining the Dingelvik MRE via decline access and UG Room and Pillar stoping, with an estimated haulage rate of between 3.0 Mtpa and 4.0 Mtpa for at least ten years (Figures).

Room and Pillar mining method.

Oblique view of conceptual Twin Decline locations (blue) and stoping area (red) with reference to the surface (grey).

Cross section view looking north of the conceptual Twin Declines (blue) and stoping locations (red) at Dingelvik.

Diamond Drilling Underway at Hennes Bay

The Phase 1 - Diamond Drilling Program

("DP-01") commenced in April and is scheduled to be completed by the end of July 2026.

The DP-01 drilling program, which comprises a total of ~4,000m, is focused on the potential upgrading of mineralisation defined by historical drilling at several prospects (Asslebyn, Henneviken, Baldersnäs, Åsnebo) to the Inferred resource category, as well as increasing the current MRE through step out drilling at the Dingelvik prospect.

The drilling is being undertaken by leading Nordic focussed diamond drilling company Protek Norr who were awarded the contract for the DP-01 drilling program.

Planned and Ongoing Work Program

The planned and ongoing work program at Hennes Bay comprises five workstreams over the next two years with the aim of rapidly advancing the project's development and realising its immense resource growth and exploration upside potential:

• Stakeholder Engagement

  • Community Liaison Office established to manage effective ongoing communication with stakeholders at a local, kommun, and federal level.

• Permitting:

  • Desktop and fieldwork to determine the current baseline status of the Flora

    and Fauna, Water, Sediments, Historical and Cultural sites within the potentially affected areas.

• Preliminary Economic Analysis ("PEA"):

  • Following completion of the UG conceptual study, planned PEA workstreams include:

    • Preliminary metallurgical testwork and process flowsheet design studies to confirm historical recoveries,

      ore characteristics and process equipment requirements.

    • Geotechnical and hydrogeological studies to enable detailed mine design and water management requirements.

    • Preliminary infrastructure studies to define corridors for road, rail, power, communications, and water.

    • Tailings storage facility design and location studies.

• Resource Expansion:

  • Drill testing of the peripheries of the Dingelvik prospect, which remains open in multiple directions.

  • Infill and extension drilling at the other five prospects with extensive zones

    of mineralisation defined by historical drilling. With limited further drilling, the Asselbyn, Henneviken, Baldersnäs, Åsnebo and Härserud Norra prospects may be added to the MRE.

• Regional Exploration:

  • Further refinement of the Exploration Model through the application of modern geophysics and discovery drilling:

    • Additional MMT surveys covering areas of interest along the prospective copper horizon.

    • Generation and drill testing of regional targets to discover higher grade zones of mineralisation in the proximal parts of the SSC mineral system..

The Swan Lake Project, comprising two granted exploration permits covering ~218km2, is located in the Southern Norrbotten region in northern Sweden (Figure). The Company holds an initial 51% interest in the Project and has the right to earn up to 80% pursuant to an earn-in agreement with Boden Prospektering AB.

Northern Sweden has a well-established mining industry, with multiple base and precious metal mines currently operating in the Northern Norrbotten and Skellefte Field ore districts. The Project is located between these two historic ore districts, 20km northwest of the emerging industrial town of Boden.

Access to the Project is excellent through a network of sealed and well-maintained forest roads. Notably, the ore train connecting the mining operations in Kiruna and Gällivare with all-year port facilities in the coastal city of Luleå runs through the centre of the Project area.

The Project is located within the Proterozoic Norrbotten volcanic belt surrounded by granitic intrusions that host the giant Aitik and Laver porphyry copper-gold ("PCG") deposits owned by Boliden (Figure). The Aitik mine, which has been in operation since 1968, is one of Europe's largest copper producers.

Northern Sweden's Porphyry District and location of the Swan Lake Project.

The copper deposit at Aitik was discovered in the 1930s. Mining began in 1968 when technology was sufficiently advanced to

profitably extract the metal. Aitik is famous for being one of the most efficient open pit copper mines in the world.

The Aitik deposit consists of chalcopyrite and pyrite yielding copper, gold and silver.

Approximately 40Mt of ore is mined and concentrated per annum, with the current dimensions of the open pit being 3km in length, 1.1km in width and 450m in depth. The current Mineral Reserve Estimate for Aitik is 1.091Bt @ 0.23% Cu, 0.16 g/t Au and 1.3 g/t Ag. In addition to the Mineral Reserves, the current MRE totals 0.905Bt @ 0.17% Cu, 0.10 g/t Au, 0.7 g/t Ag.

Laver is an advanced stage bulk open pit copper-gold-silver-molybdenum project with a MRE of 0.961Bt @ 0.23% Cu, 0.13 g/t Au, 3.9

g/t Ag and 35 g/t Mo.

The PCG occurrences observed along the Aitik-Laver-Tallberg trend in the Southern Norrbotten region are typical of more recent world class porphyry districts such as the Chilean PCG region. Whilst mining and exploration activities in the Southern Norrbotten region to date have been

centred around the known PCG deposits, the continuation of the controlling structures

for these deposits outside the mining areas remains largely unexplored.

Swan Lake Project - Local Geology.

Regional and Prospect Scale Geological Setting and Style of Mineralisation

Based on the interpretation of geological mapping, rock-chip and soil sampling, and geophysical surveys completed by the Company to date, the Project area is

considered highly prospective for epithermal altered lithocap Au-Ag and PGC style mineralisation (Figures above and on next page).

On a local scale, the Project is characterised by a large-scale alteration system that has been delineated over tens of km2 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 stone or gemstone, is now interpreted to represent the upper parts of a porphyry-epithermal system, directly linked

to stockwork Cu-Au-Ag-Mo mineralisation. Recent fieldwork has uncovered polyphase quartz sulphide stockwork veining in the area.

The results of 125 line kms of ground magnetic surveys conducted in the area have outlined

a more than 2km long, low magnetic anomaly in parts associated with strong alteration and brecciation. Multiple outcrops have been

located with mineralisation grading up to 0.7% Cu, 0.16 g/t Au and 55 g/t Ag.

Swan Lake Project - Geological Mapping, Rock-chip/Soil Sampling, and Geophysical Survey Results (pre 2025).

Swan Lake Project - Geological Interpretation.

Exploration Results - Induced Polarisation ("IP") Surveys and Field Work

Exploration undertaken at Swan Lake in late 2025 included additional regional and prospect scale field mapping, sampling, and geophysical surveys.

Several known alteration zones within the northern part of the Project area were followed up with more detailed mapping and sampling (Figure).

A gradient array IP geophysical survey was completed in November 2025 targeting the previously defined low-magnetic anomaly associated with dumortierite alteration and anomalous gold-silver-tellur-bismuth rock chip analyses (Au-Ag-Te-Bi association), as well as the mapped hydrated quartz vein systems with Cu and Au mineralisation (Figure). An additional Pole-Dipole IP survey was completed in order to refine targets for subsequent drill testing.

IP is a geophysical technique that measures how the subsurface stores and releases charge over time, as well as the resistivity of the bedrock. It typically detects disseminated sulphide mineralisation in the bedrock where other electromagnetic ("EM") techniques used for more massive style sulphide mineralisation fail. It can also outline areas void of sulphides which, in epithermal gold systems, can sometimes be associated with the highest-grade mineralisation.

Gradient IP investigates the top part of the bedrock, producing a two-dimensional style surface map of resistivity and conductivity. A Pole-Dipole IP survey creates a profile deeper down into the bedrock and is commonly used to get the third dimension after a Gradient IP survey.

The IP survey covered a previously measured magnetic low anomaly (Figure) spatially associated with what has been interpreted

Swan Lake Project - Ground Magnetics, IP and Resistivity from up to down.

Swan Lake Project - Gradient IP with Pole-Dipole profile outlined A-B. Swan Lake Project - IP Pole-Dipole profile, and

Resistivity (the lower figure).

as an Au-Ag-Te-Bi anomalous advanced argillic alteration (interpreted epithermal part). The magnetic low anomaly is conspicuously mirrored by an IP positive anomaly strongly indicating that the magnetite destruction is caused by a sulphide precipitating event.

The outcropping polyphase quartz vein system (interpreted porphyry part) in the SE of the survey area, with up to 0.7% copper and 0.16 ppm gold analysed in rock chips, shows a

very strong and well-defined linear IP positive anomaly. Whether this is caused by a dyke-like structure or part of a faulted structure remains to be investigated.

Only one pole-dipole profile was completed due to time shortage, with the location being sub-optimal but a balance between capturing structures from dumortierite alteration in the NW and the outcropping polyphase quartz vein system in the SE (figure). Even so, the eastern dipping structures are captured well, particularly by the resistivity data. The IP, despite being located in a low-gradient IP area, captures chargeability well near surface (figure).

In addition to the geophysical surveys, known copper occurrences and alteration zones in central and northern parts of the Swan Lake claims were visited and sampled. A previously unknown copper occurrence was also discovered in the northeastern parts of the claim area

by careful studies of Lidar terrain maps and a follow up field visit. Rock samples of the float around trial mining pits in the NE of the project area returned 0.16% copper and 0.07 ppm gold (figure).

Planned Work Program

Next steps at Swan Lake include systematic rock sampling across the IP positive anomaly associated with the interpreted epithermal parts of the system, as well as the strong IP anomalous quartz vein system in the SE. This will be undertaken utilising a combination

of outcrop sampling, Bottom of Till ("BOT") sampling and diamond drilling. Additional IP measurements to the north are also warranted.

The encouraging results in the NE of the project will be followed up with additional fieldwork, mapping and sampling.

Arctic Minerals holds a 100% interest in mining and exploration permits at the past-producing Bidjovagge Au-Cu mine, located in the Kautokeino municipality of northern Norway (figure).

The deposit hosts an Indicated MRE (2021) of 3.3Mt @ 1.27g/t Au and 0.97% Cu. Total contained metal is 134,000oz of gold and 32,200t of copper. Potential for cobalt and tellurium has also been identified.

The Company considers that there is excellent potential to substantially increase the MRE with further exploration. A recent study

of old drill cores has identified three new

areas with exceptionally high grades of Au and Cu mineralization, including historical intersections of:

• 18.0m @ 2.21% Cu & 33.8g/t Au

• 27.3m @ 3.11% Cu & 0.58 g/t Au

• 15.0m @ 2.0% Cu & 8.55g/t Au.

Recent analysis of geophysical data also indicates the continuation of the ore zone in several directions.

The Company is currently focused on

re-analysis of the historical data for the purpose of delineating target areas for future resource growth.

Bidjovagge project location.

Arctic Minerals owns 100% of the Kuusi Copper-Gold-PGE Project in Finnish Lapland. The Company has been exploring for copper in Peräpohja since 2017 and has found

widespread Cu mineralisation in both outcrops and boulders. Work to date includes drilling, geophysical surveys, prospecting for ore boulders and outcrops and geological mapping.

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 1/1/2025-31/12/2025.

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.

• On 3 February, Arctic Minerals announced that Jonas Lindholm, an experienced Swedish-Australian entrepreneur and international business facilitator, had joined the Company's Advisory Committee.

• On 26 February, Arctic Minerals announced that the Board had resolved on the record date for the reverse share split.

• On 26 March, Arctic Minerals announced a maiden Mineral Resource Estimate for the Hennes Bay copper-silver project. The MRE is 55.39Mt at 1.0% Copper Equivalent for a total 543,000t CuEq contained metal. The total metal content comprises 447,000t of copper and 37Moz of silver.

• On 27 May, Arctic Minerals presented an update on Hennes Bay which detailed the immense resource growth and exploration potential beyond the initial MRE.

• On 10 June, Arctic Minerals held its Annual General Meeting.

• On 19 June, Arctic Minerals announced the completion of a directed share issue of approximately SEK 17.5 million before transaction costs.

• On 30 July, Arc Arctic Minerals announced that the Company had commenced an extensive airborne Magneto-Telluric survey at the Hennes Bay copper-silver project. The survey is focussed on the Dingelvik Mineral Resource Estimate area and additional areas of interest along the prospective copper horizon.

• On 18 August, Arctic Minerals announced the addition of experienced international financial sector advisor, Pierre Olsson, to the Company's Advisory Committee.

• On 1 September, Arctic Minerals advised that an Underground Mining Conceptual Study had confirmed the technical viability for a large-scale underground mining operation at the Hennes Bay Project.

• On 15 September, Arctic Minerals AB advised on recent commenced exploration activities at the Swan Lake copper-gold project in northern Sweden. Previous geological mapping, rock-chip and soil sampling, and geophysical surveys have highlighted the project's potential for epithermal altered lithocap gold-silver and porphyry copper-gold style mineralisation.

• On 1 October, Arctic Minerals announced the positive outcome of the exercise of warrants of series TO 5, which were issued in connection with the Company's issues of units in 2024. In total, 33,101,040 warrants of series TO 5 were exercised, corresponding to approximately 99 percent of the total number of outstanding warrants of series TO 5, for subscription of 3,310,104 shares at an exercise price of SEK 3.1 per share. Arctic Minerals received approximately SEK 10.3 million before transaction costs through the exercise of the warrants of series TO 5.

• On 6 October, Arctic Minerals announced the proposal of Joakim Lidfeldt to join the Company's Board of Directors. Mr. Lidfeldt

  was proposed to replace Krister Söderholm who retired from the Board after 13 years of service but will continue to support Arctic Minerals as a member of the Company's Advisory Committee.

• On 20 October, Arctic Minerals announced that the Board, pursuant to the authorisation granted by the Annual General Meeting

  held on 10 June 2025, had resolved on a directed set-off issue of shares to six of the Company's creditors of a maximum of 381,033 shares, which will reduce the Company's debt by a maximum of SEK

  2,229,043.05. The subscription price in the Set-off Issue amounted to SEK 5.85 per share.

• On 18 November, Arctic Minerals provided an update on exploration activities at the highly prospective Swan Lake copper-gold project in Sweden. Fieldwork and geophysics undertaken by the Company have highlighted the project's prospectivity and a follow-up geophysical survey had commenced.

• On 4 December, Arctic Minerals held an Extra General Meeting. On the Extra General Meeting Joakim Lidfeldt was elected new board member replacing Krister Söderholm.

• On 22 December, Arctic Minerals announced that Johan Spetz had been appointed Chief Financial Officer of the Company. He will assume the role during the second quarter of 2026.

  SIGNIFICANT EVENTS AFTER THE END OF 2025

• On 13 January 2026, Arctic Minerals reported the results of a recently completed airborne magneto-telluric survey and magnetic vector inversion modelling of historical airborne magnetic data at the Hennes Bay Copper-Silver Project in Sweden. MMT and MVI geophysical modelling reveals strong correlation with known mineralisation and identifies combined new target area 10 times larger than the Dingelvik deposit ready for drill testing.

• On 19 February 2026, Arctic Minerals announced changes to the Company's executive management team. Peter George was appointed Managing Director and Chief Executive Officer, and Erik Lundstam appointed Deputy Chief Executive

  Officer and Chief Geologist. Peter George succeeded Risto Pietilä, who stepped down from his role as CEO.

• On 23 February 2026, Arctic Minerals provided an update on exploration results at the highly prospective Swan Lake copper-gold project. Induced Polarisation geophysical survey data has supported previous results and further refined priority targets for drill testing.

• On 21 April 2026, Arctic Minerals announced the completion of a directed share issue

  of approximately SEK 40 million before transaction costs.

• On 28 April 2026, Arctic Minerals advised that the Company's maiden diamond drilling program has commenced at its flagship Hennes Bay copper-silver project in Sweden.

• On 11 May 2026, Arctic Minerals held an Extraordinary General Meeting, at which the shareholders approved the part of the directed share issue of a total of SEK 40 million (announced on 21 April 2026) that was directed to members of the Board of Directors and senior executives. This part of the share issue amounted to a total of SEK

0.7 million.

During 2025, the Group's net revenue amounted to SEK 0.0 million (0.0), and profit after tax amounted to SEK -19.2 million (-5.8). The higher loss compared to the previous year was primarily attributable to increased expenses for the operations.

Consolidated equity amounted to SEK 111.9 million (102.7) as per 31 December 2025, which corresponds to an equity/assets ratio of 91 per cent (92). Cash and cash equivalents amounted at the same time to SEK 18.8 million (13.0). The change in cash and cash equivalents during the year constitutes cash

flow from operating activities after the change in working capital of SEK -15.9 million (-4.5), from investing activities of SEK -5.0 million

(-1.0), and from financing activities SEK 26.7 million (13.9).

The Company's investments during the year primarily consisted of capitalised exploration costs related to the development of the Hennes Bay project.

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 2025, the

Company's cash amounted to SEK 18.8 million.

During 2025, Arctic Minerals carried out a directed cash share issue of 3,334,319 shares, raising approximately SEK 17.5 million before transaction costs. During 2025, the Company also completed a directed set-off share issue of 381,033 shares to six of the Company's

creditors, thereby reducing the Company's liabilities by approximately SEK 2.2 million.

During the year, warrants of series TO 5 were exercised. In total, 33,101,040 warrants of series TO 5 were exercised, corresponding to approximately 99 per cent of the total number of outstanding warrants of series TO 5, for subscription of 3,310,104 shares. Through the exercise of the TO 5 warrants, Arctic Minerals received approximately SEK 10.3 million before transaction 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 2025, revenue for invoiced costs at subsidiaries of SEK 1.4 million (1.1) was reported, the Parent Company's costs amounted to SEK 22.7 million (5.3), and profit

after tax amounted to SEK -16.2 million (-4.1).

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 SEK, EUR, GBP and AUD.

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.

This consolidated financial statement has been prepared on the basis of accounting principles applicable to a going concern, which

assumes that the Company will be able to realise its assets and settle its liabilities in the normal course of business.

It is the Company's assessment that the current cash position is sufficient to cover the Company's fixed costs for the coming 12 months. In order for the Group, also in the

longer term, to continue its operations in their current form and to realise the accumulated value of the Group's assets, continued access to financing through additional capital raisings will be required. It is the Company's assessment that Arctic Minerals will continue to have the ability to finance its operations through capital raisings over the longer term.

Based on the information presented regarding the operations in this annual report, the Board of Directors has resolved that the Parent Company's and the Group's financial reporting as of 31 December 2025 shall be prepared on the basis of the going concern assumption.

The number of outstanding shares in the Company at the end of the period amounted to 47,028,175 (40,002,719, adjusted for the 1:10 share consolidation carried out in March 2025).

The share capital of Arctic Minerals amounted to SEK 1,881,127 at year-end, divided among 47,028,175 shares.

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:

Share premium reserve 174,808 Reserve after reduction

of share capital 0

Profit/loss carried forward -9,473

Profit/loss for the year -16,224

TOTAL 149,110

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 2021-2025 is presented below.

Accompanying notes are an integral part of the financial statements.

Accompanying notes are an integral part of the financial statements.

Accompanying notes are an integral part of the financial statements.

Accompanying notes are an integral part of the financial statements. See also Note 11.

* Adjustments for non-cash items

Impairment of tangible and

intangible non-current assets 59

Total adjustments for non-cash

items 59

Accompanying notes are an integral part of the financial statements.

Accompanying notes are an integral part of the financial statements.