Ares Strategic Mining : Consolidated Financial Statements For the Years Ended 30 September 2025 and 2024 VIEW

About this update from Ares Strategic Mining Inc

2025 Ares Strategic Mining Inc. Consolidated Financial Statements For the Years Ended 30 September 2025 and 2024 Stated in Canadian Dollars Table of Contents Management's Responsibility I INDEPENDENT AUDITORS' REPORT II Consolidated Statements of Financial Position 1 Consolidated Statements of Loss and Comprehensive Loss 2 Consolidated Statements of Changes in Equity 3 Consolidated Statements of Cash Flows 4 C ONSOLIDATED S TATEMENTS OF C ASH F LOWS (C ONT .) 5 Nature of operations and going concern 6 Summary of material accounting policies 7 New accounting standards 15 Critical accounting judgements and key sources of estimation uncertainty 15 Financial instruments and risk management 17 Amounts receivable 18 Share proceeds receivable 19 Construction in progress 21 Deposits 21 Property, plant, and equipment 22 Exploration and evaluation assets 23 Short-term loans 24 Convertible debentures 24 USDA loan payable 25 PAB loan payable 26 State of Utah loan payable 28 Share capital 28 Related party transactions and obligations 35 Segmented disclosure 36 Capital management 36 Commitments and contingencies 36 Income taxes 37 Subsequent events 38 ‌Management's Responsibility To the Shareholders of Ares Strategic Mining Inc.: Ares Strategic Mining Inc . Canadian Dollars Management is responsible for the preparation and presentation of the accompanying Consolidated Financial Statements, including responsibility for significant accounting judgments and estimates in accordance with IFRS Accounting Standards. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required. In discharging its responsibilities for the integrity and fairness of the Consolidated Financial Statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of the consolidated financial statements. The Board of Directors and the Audit Committee are composed primarily of Directors who are neither management nor employees of the Company. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and the external auditors. The Audit Committee has the responsibility of meeting with management, and the external auditors to discuss the internal controls over the financial reporting process, auditing matters and financial reporting issues. The Audit Committee is also responsible for recommending the appointment of Ares Strategic Mining Inc.'s external auditors. We draw attention to Note 1 in the Consolidated Financial Statements which indicates the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. Manning Elliott LLP, an independent firm of Chartered Professional Accountants, is appointed by the shareholders to audit the Consolidated Financial Statements and report directly to them; their report follows. The external auditors have full and free access to meet periodically and separately with the Audit Committee, and management to discuss their audit findings. "James Walker" "Viktoriya Griffin" James Walker, CEO Viktoriya Griffin, CFO ‌INDEPENDENT AUDITORS' REPORT To the Shareholders and Directors of Ares Strategic Mining Inc. Opinion We have audited the consolidated financial statements of Ares Strategic Mining Inc. and its subsidiaries (together, the "Company") which comprise: the consolidated statements of financial position as at September 30, 2025 and 2024 ; the consolidated statements of loss and comprehensive loss for the years ended September 30, 2025 and 2024; the consolidated statements of changes in shareholders' equity for the years ended September 30, 2025 and 2024; the consolidated statements of cash flows for the years ended September 30, 2025 and 2024; and the notes to the consolidated financial statements, including material accounting policy information and other explanatory information. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at September 30, 2025 and 2024, and its consolidated financial performance and its cash flows for the years ended September 30, 2025 and 2024 in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board. Basis for Opinion We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the consolidated financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the ethical requirements that are relevant to our audits of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements. Material Uncertainty Related to Going Concern We draw attention to Note 1 of the accompanying consolidated financial statements, which describes matters and conditions that indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended September 30, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern section, the key audit matters to be communicated in our auditors' report are as follows: Assessment of Impairment Indicators on Construction in Progress We draw attention to notes 2(f), 2(h), 4(a) and 8 of the consolidated financial statements. The carrying amount of the construction in progress amounted to $25,721,163 as of September 30, 2025. The Company's construction in progress is assessed for impairment at the end of each reporting period. We identified the assessment of impairment indicators on construction in progress as a key audit matter due to the judgements made by management in their assessment of the presence of impairment indicators related to construction in progress, which in turn led to additional auditor judgment, subjectivity, and effort in performing procedures to evaluate audit evidence relating to the judgments made by management in this area that could give rise to the requirement to prepare an estimate of the recoverable amount of the construction in progress. Our audit response to the key audit matter was as follows: We evaluated management's assessment of impairment indicators; We examined the nature and amount of the Company's expenditures in the year compared to the project budgets; We assessed the Company's plans and ability to continue with the construction of the assets based on the Company's available funds, funds secured subsequent to year-end, and the Company's history of raising funds through equity or debt instruments; and We examined documentation such as the Company's Board of Director's meeting minutes and the Company's press releases to assess whether there may be indications of impairment. Other Information Management is responsible for the other information. The other information comprises the Company's Management Discussion and Analysis to be filed with the relevant Canadian securities commissions. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process. Auditors' Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are, therefore, the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditors' report is Waseem Javed. CHARTERED PROFESSIONAL ACCOUNTANTS Vancouver, British Columbia January 28, 2026 ‌Consolidated Statements of Financial Position Note As at 30 September 2025 As at 30 September 2024 Assets Current Assets Cash and cash equivalents 6,580,793 $ 93,460 Restricted cash (15) 1,370,912 2,123,653 Share proceeds receivable (7) 1,374,825 452,804 Amounts receivable (6) 101,386 54,237 Prepaid amounts and other assets 1,403,006 646,026 10,830,922 3,370,180 Non-current Assets Deposits (9) 109,798 8,388,432 Share proceeds receivable (7) 333,613 393,743 Construction in progress (8) 25,721,163 9,762,608 Property, plant, and equipment (10) 8,053,448 6,178,264 Exploration and evaluation assets (11) 8,822,414 8,362,151 43,040,436 33,085,198 53,871,358 $ 36,455,378 Liabilities Current Liabilities Accounts payable and accrued liabilities (18) 2,027,556 $ 3,790,412 Short-term loans (12) 839,906 441,983 Convertible debentures (13) 244,400 1,386,189 PAB loan payable - current portion (15) 2,255,550 1,431,000 USDA loan payable - current portion (14) 6,289,193 5,768,569 Non-Current Liabilities 11,656,605 12,818,153 State of Utah loan payable (16) 14,403,425 - PAB loan payable (15) 10,775,253 11,058,977 USDA loan payable (14) 989,775 - 37,825,058 23,877,130 Equity Equity Attributable to Shareholders Share capital (17) 51,538,331 44,479,373 Options - Contributed surplus (17) 1,543,500 1,905,500 Warrants - Contributed surplus (17) 2,353,921 1,930,007 Accumulated other comprehensive income ("OCI") 146,702 158,411 Deficit (38,318,063) (34,674,978) Non-controlling interests (17) 17,264,391 (1,218,091) 13,798,313 (1,220,065) Total Equity 16,046,300 12,578,248 53,871,358 $ 36,455,378 Nature of operations and going concern (1) Capital management (20) Basis of preparation - Statement of Compliance (2) Commitments and contingencies (21) Related party transactions and obligations (18) Subsequent events (23) The Consolidated Financial Statements were approved by the Board of Directors on 28 January 2026 and were signed on its behalf by: "Paul Sarjeant" "Raul Sanabria" Paul Sarjeant, Director Raul Sanabria, Director 1 | P a g e ‌Consolidated Statements of Loss and Comprehensive Loss Year Ended 30 September Year Ended 30 September Note 2025 2024 General and Administrative Office and marketing $ 2,119,332 $ 320,829 Interest and accretion (12)(13)(14)(15)(16) 1,645,687 2,002,398 Professional fees (18) 566,756 466,429 Depreciation (10) 275,106 41,115 Management fees (18) 150,750 193,500 Transfer agent and filing fees 82,927 82,912 Insurance 56,610 67,117 Shareholder relations 20,165 18,286 Travel 19,681 1,938 Bank charges 6,814 7,540 Resource property (income) (2,358) (11,529) Foreign exchange loss/(gain) (81,236) 45,320 Other Income/(Expenses) Realized and unrealized gain on share proceeds receivable (7) Interest income Gain on sale of marketable securities Gain on settlement of debt (17) Other (income) expenses Net (Loss) for the Year Other Comprehensive Income (Loss) Foreign operations - foreign exchange Comprehensive (Loss) for the Year Net (Loss) Attributed to: Shareholders Non-controlling interest Comprehensive (Loss) Attributed to: Shareholders Non-controlling interest (4,860,234) (3,235,855) 875,952 16,461 66,718 186,347 22,857 87,700 332,951 - (79,355) 20,000 (3,641,111) (2,925,347) (11,709) 19,224 $ (3,652,820) $ (2,906,123) (3,643,085) (2,928,737) 1,974 3,390 $ (3,641,111) $ (2,925,347) (3,654,794) (2,909,513) 1,974 3,390 $ (3,652,820) $ (2,906,123) Basic and Diluted Loss per Share $ (0.02) $ (0.02) Weighted Average Number of Common Shares Outstanding 190,527,939 150,543,048 2 | P a g e -- The accompanying notes form an integral part of the consolidated financial statements -- ‌Consolidated Statements of Changes in Equity Ares Strategic Mining Inc . Canadian Dollars Equity attributable to shareholders Shares # Share capital $ Subscriptions received $ Options $ Warrants $ Accumulated OCI $ Deficit $ Total Equity $ Equity attributable to NCI $ Total $ Balance as at 1 October 2023 139,000,722 39,582,659 4,725 1,929,500 1,531,855 139,187 (31,746,241) 11,441,685 (1,223,455) 10,218,230 Shares issued for private placement, net 15,938,596 2,578,469 90,875 - 36,000 - - 2,705,344 - 2,705,344 Shares issued in conjunction with the PAB loan 6,780,500 1,356,100 - - - - - 1,356,100 - 1,356,100 Shares issued for debt settlement 2,335,537 421,760 - - - - - 421,760 - 421,760 Shares issued for Sorbie 8,916,666 362,935 - - 362,152 - - 725,087 - 725,087 Stock options exercised 445,000 81,850 - (24,000) - - - 57,850 - 57,850 Other comprehensive income - - - - - 19,224 - 19,224 - 19,224 Net loss for the year - - - - - - (2,928,737) (2,928,737) 3,390 (2,925,347) Balance as at 30 September 2024 173,417,021 44,383,773 95,600 1,905,500 1,930,007 158,411 (34,674,978) 13,798,313 (1,220,065) 12,578,248 Shares issued for private placement, net Shares issued for convertible debt Shares issued for debt settlement Stock options exercised Shares issued for Sorbie Other comprehensive loss Net loss for the year Balance as at 30 September 2025 765,170 137,731 (95,600) - - - - 42,131 - 42,131 5,346,642 1,390,127 - - - - - 1,390,127 - 1,390,127 18,004,197 4,069,432 - - - - - 4,069,432 - 4,069,432 6,792,131 1,244,977 - (362,000) - - - 882,977 - 882,977 7,229,730 312,291 - - 423,914 - - 736,205 - 736,205 - - - - - (11,709) - (11,709) - ( 11,709 ) - - - - - - (3,643,085) (3,643,085) 1,974 (3,641,111) 211,554,891 51,538,331 - 1,543,500 2,353,921 146,702 (38,318,063) 17,264,391 (1,218,091) 16,046,300 3 | P a g e -- The accompanying notes form an integral part of the consolidated financial statements -- ‌Consolidated Statements of Cash Flows Note Year Ended 30 September 2025 Year Ended 30 September 2024 Operating Activities Loss for the Year $ (3,641,111) $ (2,925,347) Items not Affecting Cash Interest and accretion on convertible debt (13) 248,338 672,324 Interest and accretion on loans (14)(15)(16) 496,726 1,330,074 Depreciation (10) 275,106 39,901 Unrealized gain on share proceeds receivable (7) (668,045) (16,461) Gain on sale of marketable securities - (87,700) (3,288,986) (987,209) Net Change in Non-cash Working Capital Accounts payable and accrued liabilities 2,243,649 1,956,189 Amounts receivable (47,149) (32,867) Prepaid amounts and other assets (840,690) (530,656) (1,933,176) 405,457 Investing Activities Construction in progress (8) (7,596,211) (4,192,791) Purchase of equipment (10) (407,233) - Resource property - expenditures (11) (412,587) (412,587) Advance on construction in progress - (8,109,450) Construction of ramp (10) (1,559,472) (3,317,500) (9,975,503) (16,032,328) Financing Activities Proceeds from State of Utah, net of costs (16) 14,143,171 - Proceeds from the USDA loan, net of repayments (14) 1,366,488 - Short term loan (paid)/received (12) 397,923 95,293 Proceeds from options exercised 882,977 57,850 Proceeds from share proceeds receivable, net (7) 605,267 - Proceeds from private placement 42,131 2,705,344 Proceeds from sale of marketable securities - 219,548 Transaction issue costs - (907,572) Proceeds from PAB loan, net - 13,987,68 17,437,977 16,158,146 Net effect of foreign currency translation 205,294 22,187 Net Increase/(Decrease) in cash and cash equivalents 5,734,592 553,462 Cash and cash equivalents - Beginning of Year 2,217,113 1,663,651 Cash and cash equivalents - End of Year $ 7,951,705 $ 2,217,113 ‌Consolidated Statements of Cash Flows (Cont.) Year Ended 30 September 2025 Year Ended 30 September 2024 Cash position comprised of: Restricted cash $ 1,370,912 $ 2,123,653 Cash and cash equivalents 6,580,793 93,460 Supplementary Disclosure of Cash Flow Information: Shares issued for financial asset - Sorbie 312,291 362,935 Interest paid 2,330,803 1,229,858 Notes to the Consolidated Financial Statements ‌Nature of operations and going concern Ares Strategic Mining Inc. ("Ares" or the "Company"), was incorporated pursuant to the Company Act (Ontario) by registration of its Memorandum and Articles on 20 November 2009. On 9 July 2010, the Company registered in British Columbia for extra provincial registration as the Company's administrative office is located at 1001-409 Granville Street, Vancouver BC, V6C 1T2. The Company is classified as a Junior Natural Resource Mining Company and is listed on the Canadian Securities Exchange under the stock symbol "ARS". The Company was previously in the business of acquiring and exploring lithium properties in Nevada and Arizona. On 18 February 2020, the Company completed a three-cornered amalgamation transaction (the "Amalgamation") with American Strategic Minerals Inc. ("ASM"). As a result, Ares is focusing on progressing its fluorspar projects towards exploitation, production, and supplying metspar and acidspar to the markets. These consolidated financial statements (the "Financial Statements") have been prepared on the basis of the accounting principles applicable to a going concern, which assumes the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. There are several adverse conditions that cast significant doubt upon the soundness of this assumption. The business of mining and exploration involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The recoverability of exploration and evaluation expenditures and construction in progress is dependent upon several factors; these factors include the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development of these properties and construction in progress, and future profitable production or proceeds from the disposition of mineral properties or construction in progress once completed. Consistent with other companies in the mineral exploration sector, the Company has incurred operating losses since inception, has limited sources of revenue, is unable to self-finance operations and has significant cash requirements to meet its overhead, maintain its mineral interests and fund the completion of its construction in progress. These factors indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. As discussed in Note 14, the Company was in breach of certain financial covenants as at September 30, 2025. The lender has not demanded repayment; however, this condition contributes to the material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. For the Company to continue to operate as a going concern, it must continue to obtain additional financing to maintain operations. Although the Company has been successful in the past at raising funds, there can be no assurance that this will continue in the future. Subsequent to year-end , the Company has raised additional equity financing and plans to obtain additional equity and debt financing to continue to explore and develop its mineral properties and complete its construction in progress. If the going concern assumptions were not appropriate for these Financial Statements, then adjustments would be necessary to the carrying value of assets and liabilities, the reported expenses and the statement of financial position classifications used, and such adjustments could be material. (Rounded 000's) 30 September 2025 30 September 2024 Working capital (deficit) $ (826,000) $ (9,448,000) Accumulated deficit attributed to shareholders $ (38,318,000) $ (34,675,000) Notes to the Consolidated Financial Statements (Cont.) ‌Summary of material accounting policies Basis of presentation Statement of Compliance These Financial Statements, including comparatives, have been prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Financial Statements have been prepared on a historical cost basis, except for financial instruments classified as financial instruments at fair value through profit and loss, which are stated at their fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting except for cash flow information. The policies set out were consistently applied to all the years presented unless otherwise noted below. The preparation of the Financial Statements requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies. The preparation of the Financial Statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, profit and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These Financial Statements incorporate the accounts of Ares and the entities controlled by the Company, which consist of: Canadian Iron Metallics Inc. ("Canadian Iron"), which was incorporated on 11 September 2014 in Ontario, Canada, owned 85% by Lithium Energy. Griffith Iron Metallics Inc. ("Griffith Iron"), which was incorporated on 11 September 2014 in Ontario, Canada, wholly owned by Canadian Iron. Karas Iron Metallics Inc. ("Karas Iron"), which was incorporated on 11 September 2014 in Ontario, Canada, wholly owned by Canadian Iron. 1200944 BC Ltd., which was formed on 18 February 2020 in BC, Canada as part of the Amalgamation with ASM, wholly owned by Ares. 101017 BC Inc., which was incorporated on 11 October 2017 in the state of Delaware in the United States, wholly owned by 1200944 BC Ltd. Ares Strategic Mining, Inc. ("Ares Utah"), which was incorporated on 12 May 2020 in the state of Utah in the United States, wholly owned by Ares. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity to obtain benefits from its activities. The financial statements of subsidiaries are included in the Financial Statements from the date that control commences until the date that control ceases. All significant intercompany transactions and balances have been eliminated. Non-controlling interest in the net assets of consolidated subsidiaries are identified separately from the Company's equity. Non-controlling interest consists of the non-controlling interest at the date of the original business combination plus the non-controlling interest's share of changes in equity since the date of acquisition. Notes to the Consolidated Financial Statements (Cont.) Foreign currency These Financial Statements are presented in Canadian dollars, which is the functional and presentation currency of the parent. Each entity determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency of the Company's Canadian subsidiaries is the Canadian dollar. The functional currency of 101017 BC Inc. and ARES Strategic Mining Inc. (Utah) is the United States dollar. Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the end of reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated. Changes in the fair value of monetary securities denominated in foreign currency classified as fair value through profit or loss are analysed between translation differences and other changes in the carrying amount of the security. Translation differences are recognized in the consolidated statements of loss and comprehensive loss and other changes in carrying amount are recognized in equity. Translation differences on non-monetary financial assets are included in equity. Cash and cash equivalents The Company considers cash and cash equivalents to include amounts held in banks and highly liquid investments with original maturities at a point of purchase of three months or less. Restricted cash Restricted cash represents cash as balances that are not available for general use by the Company and are typically held for specific purposes, such as for purchase and construction of fluorspar related capital assets. Marketable securities Marketable securities consist of equity securities over which the Company does not have control or significant influence. Property, plant, and equipment Property, plant, and equipment are depreciated using the straight-line method based on estimated useful lives. Land is not depreciated. Where an item of property, plant, and equipment is comprised of major components with different useful lives, the components are accounted for as separate items of property, plant, and equipment. Expenditures incurred to replace a component of an item of property, plant, and equipment that is accounted for separately, including major inspection and overhaul expenditures, are capitalized. Directly attributable expenses incurred for major capital projects and site preparation are capitalized until the asset is brought to a working condition for its intended use. These costs include dismantling and site restoration costs to the extent these are recognized as a provision. The costs of day-to-day servicing are recognized in profit or loss as incurred. These costs are more commonly referred to as "maintenance and repairs." Notes to the Consolidated Financial Statements (Cont.) Financing costs directly associated with the construction or acquisition of qualifying assets are capitalized at interest rates relating to loans specifically raised for that purpose, or at the average borrowing rate where the general pool of group borrowings is utilized. Capitalization of borrowing costs ceases when the asset is substantially complete. The depreciation method, useful life and residual values are assessed annually. Property, plant, and equipment are stated, in the consolidated statement of financial position, at cost less accumulated depreciation and accumulated impairment losses. Assets in the course of construction are carried at cost, less any recognized impairment loss. Depreciation of these assets commences when the assets are ready for their intended use. The cost of property, plant, and equipment includes directly attributed incremental costs incurred in their acquisition and installation. Assets held under capital lease are depreciated over their expected useful lives on the same basis as owned assets, or where shorter, the term of the relevant lease. The gain or loss arising on the disposal or retirement of an item of equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in the consolidated statements of loss and comprehensive loss. Subsequent costs The cost of replacing part of an item within property, plant, and equipment is recognized when the cost is incurred if it is probable that the future economic benefits will flow to the Company and the cost of the item can be measured reliably. All other costs are recognized as an expense as incurred. Impairment The Company's tangible and intangible assets are reviewed for an indication of impairment at each consolidated statement of financial position date. If indication of impairment exists, the asset's recoverable amount is estimated. An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit, exceeds its recoverable amount. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Impairment losses are recognized in profit and loss for the year. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis. The recoverable amount is the greater of the asset's fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Reversal of impairment An impairment loss is reversed if there is an indication that there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. An impairment loss with respect to goodwill is never reversed. Notes to the Consolidated Financial Statements (Cont.) Depreciation is charged so as to write off the cost of the asset using the straight-line method over the estimated useful lives as follows: Computer Equipment 1-3 years Field Equipment 3-10 years Auto 10 years Building 20 years Ramp 20 years Exploration and evaluation assets The Company is currently in the exploration stage with all of its mineral interests. Exploration and evaluation costs include the costs of acquiring licenses, costs incurred to explore and evaluate properties, and the fair value, upon acquisition, of mineral properties acquired in a business combination. Costs of acquisition and exploration of mineral properties are capitalized until either commercial production is established or a property is abandoned. Once commercial production has commenced, the net costs of the applicable property are charged to operations using the unit-of-production method based on estimated proven and probable recoverable reserves. The net costs related to abandoned properties are charged to income. Office and administration costs not specifically related to mineral projects are expensed in the year in which they occur. The Company reviews the indicators of impairment of each property on an annual basis, at a minimum. This review generally is made by reference to the timing of exploration work, work programs proposed, and the exploration results achieved by the Company and others. When the indicators of impairment exist, the carrying value of a property is compared to its net recoverable amount. An impairment adjustment is made for the decline in fair value. The amounts shown for the exploration and evaluation assets represent costs incurred to date and do not reflect present or future values. Acquisition costs represent shares or cash paid to acquire the rights to the resource property, while exploration expenditures represent amounts paid to explore and develop the resource properties. The recoverability of these capitalized costs is dependent upon the existence of economically recoverable reserves and the ability of the Company to obtain necessary financing to successfully complete their exploration program. From time to time, the Company may acquire or dispose of mineral interests pursuant to the terms of option agreements. Since options are exercisable entirely at the discretion of the optionee, the amounts payable or receivable are not recorded. Option payments are recorded in the year that the payments are made or received. The Company does not accrue costs to maintain mineral interests in good standing. Construction in progress Expenditure incurred during the construction period on the projects under implementation are treated as preoperative expenses pending allocation to property, plant and equipment and are included under construction in progress, which is stated at the amount incurred up to the date of the consolidated statements of financial position. Notes to the Consolidated Financial Statements (Cont.) Capitalized borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that takes a substantial period of time to get ready for its intended use are capitalized until such time that the assets are substantially ready for their intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred. Where funds are borrowed specifically to finance a project, the amount capitalized represents the actual borrowing costs incurred. Where the funds used to finance a project form part of general borrowings, the amount capitalized is calculated using a weighted average of interest rates applicable to relevant general borrowings of the Company during the period, to a maximum of actual borrowing costs incurred. Provision for reclamation and remediation The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the retirement of property, plant and equipment when those obligations result from the acquisition, construction, development or normal operation of the assets. The net present value of future rehabilitation cost estimates is capitalized along with a corresponding increase in the rehabilitation provision in the period incurred. Discount rates using a pre-tax rate that reflect the time value of money are used to calculate the net present value. The rehabilitation asset is depreciated on the same basis as mining assets. The Company's estimates of reclamation costs could change because of changes in regulatory requirements and assumptions regarding the amount and timing of the future expenditures. These changes are recorded directly to mining assets with a corresponding entry to the rehabilitation provision. The Company's estimates are reviewed annually for changes in regulatory requirements, effects of inflation and changes in estimates. Changes in the net present value, excluding changes in the Company's estimates of reclamation costs, are charged to profit and loss for the year. The costs of rehabilitation projects that were included in the rehabilitation provision are recorded against the provision as incurred. The cost of ongoing current programs to prevent and control pollution is charged against profit and loss as incurred. Provisions Provisions are recorded when a present legal or constructive obligation exists as a result of past events where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the consolidated statement of financial position date, considering the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received, and the amount receivable can be measured reliably. Notes to the Consolidated Financial Statements (Cont.) Income Taxes Income tax expense comprises current and deferred tax. Income tax expense is recognized in the consolidated statement of loss and comprehensive loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized on the initial recognition of assets or liabilities in a transaction that is not a business combination. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis, or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Financial instruments All financial instruments are measured at initial recognition at fair value plus any transaction costs that are directly attributable to the acquisition of the financial instruments except for transaction costs related to financial instruments classified as at fair value through profit or loss (FVPL) which are expensed as incurred. The initial classification of a financial asset depends upon the Company's business model for managing its financial assets and the contractual terms of the cash flows. There are three categories into which the Company can classify its financial assets: Amortized cost. A financial asset is measured at amortized cost if the contractual cash flows to repay the principal and interest are made at specific dates and if the Company's business model is to collect the contractual cashflows. Subsequent measurement uses the effective interest method, less any provision for impairment. Fair value through other comprehensive income (FVOCI). A financial asset is measured at FVOCI if the Company's business model is both to collect the contractual cashflows and sell assets and the contractual terms of the assets give rise on specified dates to cash flows that are solely repayments of principal and interest. Fair value through profit or loss (FVPL). A financial asset is measured at FVPL if it cannot be measured at amortized cost or FVOCI. At initial recognition the Company may also irrevocably designate a financial asset at FVPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency. Financial assets at FVPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss to the extent they are not part of a designated hedging relationship. Notes to the Consolidated Financial Statements (Cont.) A financial asset is derecognized when the Company no longer has the rights to the contractual cash flows due to expiration of that right or the transfer of the risks and rewards of ownership to another party. The Company recognizes a loss allowance for expected credit losses on its financial assets using the simplified approach which permits the use of the lifetime expected loss provision for all amounts receivables. At each reporting date the Company assesses impairment of amounts receivable on a collective basis as its amounts receivable possess shared credit risk characteristics and have been grouped based on days past due. The loss allowance will be based upon the Company's historical credit loss experience over the expected life of trade receivables and contract assets, adjusted for forward looking estimates. Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. The Company's financial assets consist of cash and cash equivalents, restricted cash, and share proceeds receivable which have been classified at FVPL. A financial liability is initially classified as measured at amortized cost or FVPL. A financial liability is classified as measured at FVPL if it is held for trading, a derivative, contingent consideration of an acquirer in a business combination, or has been designated as FVPL on initial recognition. Financial liabilities at FVPL are measured at fair value with changes in fair value, along with any interest expense, recognized in profit or loss. All other financial liabilities are initially measured at fair value less directly attributable transaction costs and are subsequently measured at amortized cost using the effective interest method. The Company's financial liabilities consist of accounts payable, short-term loans, convertible debentures, and long-term loans, which have been classified as financial liabilities at amortized cost and are measured at amortized cost using the effective interest method. A financial liability is derecognized when the obligation is discharged, cancelled or expired. Share capital Share capital issued for non-monetary consideration is recorded at an amount based on the quoted market value of the Company's shares at the time of issuance. The Company engages in equity financing transactions to obtain the funds necessary to continue operations and explore and evaluate mineral properties. These equity financing transactions may involve issuance of common shares or units. A unit comprises a certain number of common shares and a certain number of share purchase warrants ("Warrants"). Depending on the terms and conditions of each equity financing agreement ("Agreement"), the Warrants are exercisable into additional common shares prior to expiry at a price stipulated by the Agreement. Warrants that are part of units are measured at fair value on the date of issue using the Black-Scholes option pricing model and included in share capital with the common shares that were concurrently issued, based on their relative fair values. Broker compensation options are classified as issuance costs and a deduction from equity and measured at fair value on the date of issue using the Black-Scholes option pricing model. After issuance the terms of Warrants may be modified throughout the Warrant life. At the time of the modification the Warrant is valued under the new terms immediately preceding and immediately after the modification using the Black-Scholes pricing model. The incremental value in the Warrants issued as compensation for services is added to warrant equity and a warrant modification expense is recorded to the consolidated statement of loss and comprehensive loss. Share-based payments The Company grants stock options to buy common shares of the Company to directors, officers, employees and service providers. The board of directors grants such options for periods of up to five years, with vesting periods determined at its sole discretion and at prices equal to or greater than the closing market price on the day preceding the date the options were granted. Notes to the Consolidated Financial Statements (Cont.) The fair value of the options is measured at grant date, using the Black-Scholes option pricing model, and is recognized during the year that the employees earn the options. The fair value is recognized as an expense with a corresponding increase in equity. The amount recognized as expense is adjusted to reflect the number of share options expected to vest. Forfeitures of stock options are accounted for as incurred. Loss per share Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the reporting year. Diluted earnings per share is computed like basic earnings per share except that the weighted average shares outstanding are increased to include additional shares for the assumed exercise of stock options and warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods. Convertible debentures The liability, equity and other (when applicable) components of convertible debentures are presented separately on the consolidated statements of financial position, starting from initial recognition. The Corporation determines the carrying amount of the financial liability by discounting the stream of future payments at the prevailing market rate for a similar liability of comparable credit status and substantially providing the same cash flows. Subsequently, the liability component is then increased by accretion of the discounted amounts to reach the nominal value of the convertible debenture at maturity, which is recorded in the consolidated statements of loss and comprehensive loss as accretion expense. The carrying amount of other components (when applicable), such as warrants, is obtained by deducting the nominal value of the debentures and the present value of future capital payments at the prevailing market rate for a convertible debenture without warrants. The carrying amount of the equity component is calculated by deducting the carrying amount of the financial liability and the carrying amounts of any other components (when applicable) from the amount of the convertible debenture and is presented in Equity as an equity component of convertible debenture. The equity component is not re-measured subsequent to initial recognition, except on conversion or expiry. The transaction costs are distributed between liability, equity and other components (when applicable) on a pro-rata basis, according to their carrying amounts. Comprehensive income (loss) Comprehensive income (loss) is the change in the Company's net assets that results from transactions, events and circumstances from sources other than the Company's shareholders and includes items that would not normally be included in net profit/loss such as unrealized gains or losses on available-for-sale investments, gains or losses on certain derivative instruments and foreign currency gains or losses related to self-sustaining operations if the functional currency is not the Canadian dollar. The Company's comprehensive loss is presented in the consolidated statements of loss and comprehensive loss and the consolidated statements of changes in equity. Notes to the Consolidated Financial Statements (Cont.) ‌New accounting standards The following amendments to standards and interpretations became effective for the annual periods beginning on or after 1 January 2024. The application of these amendments and interpretations had no significant impact on the Company's consolidated financial position or results of operations. The IASB and the IFRIC have issued the following new and revised standards and interpretations that are not yet effective for the relevant reporting periods and the Company has not early adopted these standards, amendments and interpretations. However, the Company is currently assessing what impact the application of these standards or amendments will have on the consolidated financial statements of the Company. The Company intends to adopt these standards, if applicable, when the standards become effective: Effective 1 January 2027, the Company will adopt IFRS 18, Presentation and Disclosure in Financial Statements. The new standards replace IAS 1, Presentation of Financial Statements, and for all entities will - Introduce a new defined structure for the statement of profit and loss and require the classification of income and expenses in that statement into one of five categories: operating; investing; financing; income taxes; and discontinued operations. IFRS 18 introduces definitions of these categories for purposes of the statement of profit and loss. Specific categorization requirements will apply to entities whose 'main business activity' is to Provide financing to customers or to invest in specified assets. Entities will also be required to present new subtotals for 'operating profit or loss' and 'profit or loss before financing and income taxes; Require disclosure of 'management-defined performance measures' (MPMs) in a single note to the financial statements. MPMs are subtotals of income and expenses that an entity uses in public communications outside of its financial statements, to communicate management's view of an aspect of the financial performance of the entity as a whole to users. Entities must disclose a reconciliation between the measure and the most directly comparable total or subtotal specifically required to be disclosed by IFRS Accounting Standards or subtotal listed in IFRS 18; Enhance guidance about how to group information within the financial statements; and For the statement of cash flows, require that 'operating profit or loss' be used as the starting point for determining cash flows from operating activities under the indirect method, and remove the optionality around classification of cash flows from interests and dividends. ‌IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, including for interim financial statements. Earlier application is permitted. The new standard is to be applied retrospectively, and, in the year of adoption, a reconciliation is required between how the statement of profit or loss was presented in the comparative period under IAS 1 and how it is presented in the current year under IFRS 18. Critical accounting judgements and key sources of estimation uncertainty In the application of the Company's accounting policies, management is required to make judgments, estimates and assumptions about the carrying amount and classification of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revisions affect only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. Notes to the Consolidated Financial Statements (Cont.) The following are the critical judgments and areas involving estimates, that management have made in the process of applying the Company's accounting policies and that have the most significant effect on the amount recognized in the Financial Statements. Judgements Income taxes Deferred tax assets are recognized for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that probable that future taxable profit will be available against which the deductible temporary differences and carry-forward of unused tax assets and unused tax losses can be utilized. In addition, the valuation of tax credits receivable requires management to make judgements on the amount and timing of recovery. Going concern evaluation As discussed on Note 1, these Financial Statements have been prepared under the assumptions applicable to a going concern. If the going concern assumption were not appropriate for these Financial Statements, then adjustments would be necessary to the carrying value of assets and liabilities, the reported expenses and the consolidated statement of financial position classifications used and such adjustments could be material. The Company reviews the going concern assessment at the end of each reporting period. There were no material changes to the assessment as at 30 September 2025. Exploration evaluation assets The Company makes certain estimates and assumptions regarding the recoverability of the carrying values of exploration and evaluation assets. The amounts shown for exploration and evaluation assets do not necessarily represent present or future values. The recoverability of the assets' carrying values is dependent upon the determination of economically recoverable reserves, the ability of the Company to obtain the necessary financing and permits to complete development and future profitable production or proceeds from the disposition thereof. The Company has taken steps to verify title to exploration and evaluation assets in which it has or is in the process of earning an interest, including review of condition of title reports, vesting deeds, mining claim location notices and filings, and property tax and other public records and is not presently aware of any title defects. The procedures the Company has undertaken and may undertake in the future to verify title provide no assurance that the underlying properties are not subject to prior agreements or transfers of which the Company is unaware. Long-lived assets The Company makes certain judgements in its assessment of whether indicators of impairment exist with respect to its long-lived assets. The carrying amounts of the Company's long-lived assets are reviewed at each reporting date for indicators of impairment. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the amount of the impairment, if any. The recoverable amount of an asset is evaluated at the cash-generating unit level, which is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. The recoverable amount of a CGU is the greater of its fair value less costs to sell and its value in use. Notes to the Consolidated Financial Statements (Cont.) Estimates Useful lives of property, plant and equipment Useful lives are estimated by management based on the expected period over which the assets are anticipated to be available for use, taking into consideration factors such as expected usage, physical wear and tear, technical or commercial obsolescence, and legal or other limits on the use of the assets. The useful lives and residual values of property, plant and equipment are reviewed at least annually and are adjusted prospectively if expectations differ from previous estimates. Changes in the estimated useful lives of assets could result in changes to depreciation expense in current and future periods. ‌Financial instruments and risk management Financial instrument classification and measurement Financial instruments of the Company carried on the consolidated statement of financial position are carried at amortized cost. There are no significant differences between the carrying value of financial instruments and their estimated fair values as at 30 September 2025. There have been no changes in levels during the period. The Company classifies the fair value of these transactions according to the following hierarchy: Level 1 - quoted prices in active markets for identical financial instruments. Level 2 - quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 - valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Fair values of financial assets and liabilities The Company's financial instruments include cash and cash equivalents, accounts payable, short-term loans and long-term loans. As at 30 September 2025, the carrying value of cash and cash equivalents is at fair value. Accounts payable and short-term loans approximate their fair value due to their short-term nature. Market risk Market risk is the risk that changes in market prices will affect the Company's earnings or the value of its financial instruments. Market risk is comprised of commodity price risk and interest rate risk. The objective of market risk management is to manage and control exposures within acceptable limits, while maximizing returns. The Company is not exposed to significant market risk. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company's primary exposure to credit risk is on its bank accounts. The Company's bank accounts are held with major banks in Canada, accordingly the Company is not exposed to significant credit risk. Interest rate risk Interest rate risk is the risk of losses that arise as a result of changes in contracted interest rates. The Company is not exposed to significant interest rate risk. ‌Notes to the Consolidated Financial Statements (Cont.) Currency risk Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign currency risk on its restricted cash and USDA and PAB loans payable balances that are denominated in other than the functional currencies. As at 30 September 2025, the Company held currency totalling the following: Currency (Rounded) 30 September 2025 30 September 2024 Canadian (Dollars) $ 183,000 180,000 US (Dollars) $ 5,580,000 1,509,000 Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company controls liquidity risk by ensuring that it has sufficient cash resources to pay for its financial obligations. As at 30 September 2025, the Company had a cash balance of $6,580,793 to settle current liabilities of $11,656,605 that are due within one year. The Company's outstanding liabilities, their current values and the principal amounts along with the due dates are as stated in the table below: Carrying value Principal amount Less than 1 year 1 - 5 years 5+ years Accounts payable and accrued liabilities $ 2,027,556 $ 2,027,556 $ 2,027,556 $ - $ - Short-term loans 839,906 839,906 839,906 - - Convertible debentures 244,400 244,400 244,400 - - USDA loan 7,278,968 7,278,968 7,278,968 - - State of Utah bill 14,403,425 15,313,100 - - 15,313,100 PAB loan 13,030,803 14,617,050 828,300 4,287,668 9,501,083 Total $ 37,825,058 $ 40,320,980 $ 11,219,130 $ 4,287,668 $ 24,814,183 ‌Amounts receivable Amounts receivable consists of: Amounts Receivable 30 September 2025 30 September 2024 Goods and services tax receivable $ 36,393 $ 32,892 Receivable on disposition 64,993 21,345 101,386 54,237 Notes to the Consolidated Financial Statements (Cont.) Share proceeds receivable The following table summarizes the details of share proceeds receivable associated with Sorbie Bornholm LP (" Sorbie") equity swap agreements, measured through profit and loss: SHARE PROCEEDS RECEIVABLE 30 September 2025 30 September 2024 Balance - Beginning of Year $ 846,547 $ - Addition of share proceeds receivable (initial recognition) 842,006 830,086 Proceeds received (856,067) - Realized gain upon receipt of proceeds 207,907 - Unrealized gain 668,045 16,461 Balance - End of Year $ 1,708,438 $ 846,547 The following table provides a breakdown of the share proceeds receivable between current and non-current assets based on the timing of the expected cash flows: SHARE PROCEEDS RECEIVABLE 30 September 2025 30 September 2024 Current $ 1,374,825 $ 452,804 Non-current 333,613 393,743 $ 1,708,438 $ 846,547 On 2 April 2025, the Company entered into a subscription agreement with Sorbie whereby Sorbie agreed to purchase 7,229,730 Units at a price of C$0.1998 per Unit for gross proceeds of $1,000,0000 over 24 months. Each Unit consists of one common share in the capital of the Company ("Common Share") and one common share purchase warrant ("Warrant"), Note 17. Sorbie and the Company entered into an equity swap agreement ("Sharing Agreement") at C$0.1998 (the "Benchmark Price"). The Sharing Agreement shall provide the Company's economic interest will be realized in 24 monthly settlement tranches as measured against the Benchmark Price. If, at the time of settlement, the Settlement Price (determined monthly based on a volume weighted average price for 20 trading days prior to settlement date) ("Settlement Price") exceeds the Benchmark Price, the Company shall receive more than 100% of the monthly settlement due, on a pro rata basis. There is no upper limit placed on the additional proceeds receivable by the Company as part of the monthly settlements. If, at the time of settlement, the Settlement Price is below the Benchmark Price, the Company will receive less than the 100% of the monthly settlement due, on a pro rata basis. The share proceeds receivable relating to the cash receivable of $1,000,000 do not meet the classification of a financial asset measured at amortized cost or at fair value through other comprehensive income as the Company does not have a business model whose objective is to hold financial assets in order to collect contractual cash flows, and the financial asset does not give rise to cash flows that are solely payments of principal and interest. Therefore, the cash receivable is classified as a financial asset measured at fair value through profit or loss. In accordance with IFRS 9, Financial Instruments, 7,229,730 units were valued based on the fair value of the share proceeds receivable. The Company assessed the fair value of the share proceeds receivable under IFRS 9 and determined to be $842,006 on the date of issuance. The corresponding fair value of the equity instruments of Notes to the Consolidated Financial Statements (Cont.) $842,006 was allocated between the Common Shares and Warrants based on their relative fair values in accordance with IAS 32, Financial Instruments: Presentation, and the Company's accounting policy. Subsequently, the financial asset was revalued at 30 September 2025 with the difference between the initial valuation and the value recognized in profit or loss as an unrealized gain (loss) on financial asset. On 30 September 2025, the fair value of the share proceeds receivable was calculated based on the net present value of each future expected cash flows relating to the receivable, adjusted for the observable Settlement Price on the date of measurement. As at 30 September 2025, based on the fair value calculations, the fair value of the share proceeds receivable was determined to be $973,127. This resulted in an increase to the carrying value of the share proceeds receivable of $326,477 which was recognized in the consolidated statement of loss and comprehensive loss as an unrealized gain on share proceeds receivable. During the year ended 30 September 2024: As at 30 September 2024, the Company entered into a subscription agreement with Sorbie whereby Sorbie agreed to purchase 8,333,333 Units at a price of C$0.1800 per Unit for gross proceeds of $1,500,000 over 24 months. Each Unit consists of one Common Share in the capital of the Company and one Warrant, Note 17. Sorbie and the Company entered into a sharing agreement during Fiscal 2024 at C$0.2610 benchmark price, similar to the Fiscal 2025 Sharing Agreement described above. The share proceeds receivable relating to the cash receivable of $1,500,000 did not meet the classification of a financial asset measured at amortized cost or at fair value through other comprehensive income as the Company does not have a business model whose objective is to hold financial assets in order to collect contractual cash flows, and the financial asset does not give rise to cash flows that are solely payments of principal and interest. Therefore, the cash receivable is classified as a financial asset measured at fair value through profit or loss. In accordance with IFRS 9, 8,333,333 units were valued based on the fair value of the share proceeds receivable. The Company assessed the fair value of the share proceeds receivable under IFRS 9 and determined to be $830,086 on the date of issuance. The corresponding fair value of the equity instruments of $830,086 was allocated between the Common Shares and Warrants based on their relative fair values in accordance with IAS 32 and the Company's accounting policy. Subsequently, the financial asset was revalued at 30 September 2024 and 30 September 2025 with the difference between the initial valuation and the value recognized in profit or loss as an unrealized gain (loss) on financial asset. On 30 September 2024 and 30 September 2025, the fair value of the share proceeds receivable was calculated based on the net present value of each future expected cash flows relating to the receivable, adjusted for the observable Settlement Price on the date of measurement. As at 30 September 2025, based on the fair value calculations, the fair value of the share proceeds receivable was determined to be $735,311 (30 September 2024 - $846,547). This resulted in an increase to the carrying value of the share proceeds receivable of $341,568 (30 September 2024 - $16,461), which was recognized in the consolidated statement of loss and comprehensive loss as an unrealized gain on share proceeds receivable. Notes to the Consolidated Financial Statements (Cont.) ‌Construction in progress During the year ended 30 September 2021, the Company entered into an agreement to acquire a fluorspar lump manufacturing facility (the "Facility") pursuant to the terms and conditions of a Profit-Sharing Agreement dated 9 February 2021, as amended (the "Profit Sharing Agreement") between the Company and the Mujim Group, a non-arm's length private Shanghai company ("Mujim"). Pursuant to the terms of the Profit-Sharing Agreement, the Company had agreed to acquire the Facility by issuing an aggregate of 5,300,000 common shares in the capital of the Company (each, a "Share"), the fair value of which was determined based on the date when they were issued, i.e. $0.67, and the consideration was recorded as a capital advance to Mujim as at 30 September 2021. The Company has agreed that, upon completion of the Facility, it would incur costs pertaining to the installation of the Facility, including compensating contractors from Mujim to assist with installation and to begin operating the Facility. Furthermore, once the Facility is operational within parameters and specifications defined in the Profit-Sharing Agreement, the company will pay Mujim, US$20 per ton for ongoing technical support, and has also agreed to pay Mujim, US$10 per ton as agency fee for any sales in Asia. The final purchase price may vary depending on certain target production output metrics defined in the Profit-Sharing agreement. During the year ended 30 September 2022, the Company received significant components (including the structure) of the Facility and incurred an additional $572,139 to acquire these additional components and structure for the Facility and received their delivery. During the year ended 30 September 2023, the Company completed the acquisition of industrial land (Note 10) for installation of the Facility and a flotation plant and incurred further costs towards its completion such as design work and other prerequisites. During the year ended 30 September 2024, the Company purchased a flotation plant from a non-arm's length company, which is an entity controlled by a director of the Company. As a result, US$6,007,000 ($8,109,450) has been paid and recorded as a deposit at 30 September 2024. As at 30 September 2025, the construction of the Facility is in progress and significantly all components of the flotation plant were received. As at 30 September 2025, the Company has incurred $25,721,163 (2024 - $9,762,608) in construction costs on the Facility which included $2,747,544 (2024 - $1,214,437) of capitalized borrowing costs. The Company is expected to incur additional costs to complete the installation of the Facility and the flotation plant, and begin operations. ‌Deposits Deposits consist of: Deposits 30 September 2025 30 September 2024 Office lease $ 6,309 $ 2,912 Surety deposits 103,489 276,070 Flotation deposits - 8,109,450 $ 109,798 $ 8,338,432 Notes to the Consolidated Financial Statements (Cont.) As at 30 September 2025, the balance in deposits of $6,309 (2024 - $2,912) increased with the renewal of short term lease and represents a deposit for office lease; reclamation surety and bond in the amount of $103,489 (2024 - Addition Adjustment on currency translation 407,233 - - 2,200 - 1,559,472 1,966,705 84,732 96,210 183,142 Balance as at 30 September 2025 $ 568,562 $ 72,737 $ 2,876,794 $ 4,973,182 $ 8,491,275 $276,070) paid to the State of Utah for a five-year escalation at Lost Sheep and Bell Hill. ‌10) Property, plant, and equipment Property, Plant, and Equipment Equipment Auto Land Ramp Total Cost Balance as at 1 October 2023 $ 161,329 $ 70,699 $ 2,810,176 $ - $ 3,042,204 Addition - - - 3,317,500 3,317,500 Adjustment on currency translation (162) (18,114) (18,276) Balance as at 30 September 2024 $ 161,329 $ 70,537 $ 2,792,062 $ 3,317,500 $ 6,341,428 Depreciation Balance as at 1 October 2023 $ 106,289 $ 16,837 $ - $ - $ 123,126 Depreciation for the year 32,798 7,103 - - 39,901 Adjustment on currency translation - 137 - - 137 Balance as at 30 September 2024 $ 139,087 $ 24,077 $ - $ - $ 163,164 Carrying Amounts Balance as at 30 September 2024 $ 22,242 $ 46,460 $ 2,792,062 $ 3,317,500 $ 6,178,264 Balance as at 30 September 2025 $ 411,489 $ 40,642 $ 2,876,794 $ 4,724,523 $ 8,053,448 Depreciation for the year Adjustments on currency translation 17,985 - 7,301 718 - - 249,820 (1,161) 275,106 (443) Balance as at 30 September 2025 $ 157,072 $ 32,096 $ - $ 248,659 $ 437,828 Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is charged to recognize the cost of the asset on the consolidated statements of loss and comprehensive loss using the straight-line method over the estimated useful life of the asset. During the year ended 30 September 2023, the Company acquired an industrial land parcel located in Millard County, State of Utah in the United States for the purpose of setting up its fluorspar plant, which was pledged as collateral on the USDA loan. In addition to the land parcel acquired during the year, land comprises five Canadian properties located in Ontario, Canada (Note 11(f)). The Company earns revenues from sale of quarry rock located on these properties. These revenues are offset against maintenance payments made on the property and are included within the resource property expense on the consolidated statement of loss and comprehensive loss. Canadian Dollars Notes to the Consolidated Financial Statements (Cont.) ‌11) Exploration and evaluation assets The following table summarizes exploration and evaluation assets: Spor E XPLORATION AND E VALUATION A SSETS Mountain Ontario Properties Total Balance as at 1 October 2023 $ 7,960,140 $ 4 $ 7,960,144 Geological consulting 267,486 - 267,486 Administration and camp 59,142 59,142 Staking and claiming 85,942 - 85,942 Adjustments on currency translation (10,563) - (10,563) Balance as at 30 September 2024 $ 8,362,147 $ 4 $ 8,362,151 Drilling 147,860 147,860 Geological consulting 251,449 - 251,449 Staking and claiming 3,518 3,518 Administration and camp 54,369 - 54,369 Adjustments on currency translation 3,120 - 3,120 Balance as at 30 September 2025 $ 8,822,464 $ 4 $ 8,822,467 Spor Mountain (also known as Lost Sheep) The Company holds a 100% interest in and rights to certain U.S. federal mining claims located at the north-east end of the Spor Mountain Mining District, in section 21, T.12S. 12W, and T.13S. 12W, SLBM of Juab County, western Utah, USA (the "Spor Mountain"). The Spor Mountain property consists of several mineral claim blocks including the Lost Sheep Fluoride Mine, and other unpatented claims. The Company acquired its initial interest through the Amalgamation on 18 February 2020. During the year ended 30 September 2021, the Company acquired additional claims in the region through staking. As part of the amalgamation with ASM, the Company assumed an underlying property purchase agreement (the "Purchase Agreement") for certain unpatented claims comprising the Spor Mountain property, pursuant to which the Company would be required to make a payment of US$1,000,000 within 18 months from the commencement of production. During the year ended 30 September 2021, USD $1,000,000 was transferred to the underlying vendor, pursuant to which, the Company is deemed to have fulfilled its obligations under the Purchase Agreement, and the title to the unpatented claims was transferred to the Company. Ontario properties The Company holds a 100% interest in five properties located in Ontario, Canada. Canadian Dollars Notes to the Consolidated Financial Statements (Cont.) ‌Short-term loans The following is a summary of the Company's short-term loans as at 30 September 2025 and 30 September 2024: Outstanding S HORT -T ERM L OANS Year Principal Operational loans from related parties 2025 $ 812,141 2024 $ 342,210 Canada Emergency Business Account loan 2025 $ 27,765 2024 $ 34,773 Others 2025 $ - 2024 $ 65,000 Total as at 30 September 2025 2025 $ 839,906 Total as at 30 September 2024 2024 $ 441,983 As at 30 September 2025 , the Company obtained a net $696,413 (30 September 2024 - $233,400) loan from the CEO as well as received $112,203 (30 September 2024 $108,810) in loans from companies related to directors of the Company subject to 10% per annum and maturing on 30 August 2025, which have been settled after the year end date. There are no defined terms or due dates of repayment on the loans from the CEO and a non-related party obtained are unsecured. Canada Emergency Business Account loan of $60,000 was refinanced with the financial institution in order to repay the full amount in January 2024 and the Company qualified for $20,000 loan forgiveness which was recognized as other income during the year ended 30 September 2024. The refinanced balance of $40,000 is subsect to prime rate plus 2.14% per annum over 5-year term commencing on 18 January 2024. ‌Convertible debentures On 2 December 2022, the Company closed a non-brokered private placement offering of secured convertible debentures totalling $1,252,700. The Company incurred a financing fee equal to 45% of the principal amount amounting to $563,715 and paid a finders' fee totalling $52,720 for net proceeds of $636,265. The principal amount of convertible debentures will be convertible at holder's option into full-paid common shares in the capital of the Company at any time prior to maturity in two years, at an exercise price of $0.26 per common share. Interest on the debentures shall be paid semi-annually at an annual interest rate of 12% per annum. In connection with the convertible debentures, the Company also issued 202,771 finders' warrants, with each warrant exercisable into one common share of the Company for a period of two years at a price of $0.26 per common share. The fair value of the warrants was calculated to be $20,000 using the Black-Scholes option pricing model. During the year ended 30 September 2025, certain holders converted their principal convertible debt totalling $1,070,900 and associated interest of $319,227 into common shares of the Company. The following table summarizes the accounting for the convertible debentures and the amounts recognized during the year. 24 | P a g e

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