Unaudited Condensed Interim Consolidated Financial Statements of
FORTUNE BAY CORP.June 30, 2026
(Expressed in Canadian Dollars)
In accordance with National Instrument 51-102 Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed interim consolidated financial statements, they must be accompanied by a notice indicating that these condensed interim consolidated financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.
FORTUNE BAY CORP. Unaudited Condensed Interim Consolidated Statements of Financial PositionExpressed in Canadian dollars | June 30, 2026 | December 31, 2025 |
Assets Current assets Cash and cash equivalents | $ 4,672,379 | $ 7,900,489 |
Restricted cash (Note 6) | 1,846,959 | 10,751 |
Investments (Note 4) | 151,667 | 125,667 |
Accounts receivable (Note 3) | 199,302 | 215,485 |
Prepaid expenses | 131,951 | 69,882 |
7,002,258 | 8,322,274 | |
Reclamation deposit | 42,119 | 42,119 |
Property and equipment (Note 5) | 207,356 | 162,820 |
Investments (Note 4) | 635,880 | 251,541 |
Exploration and evaluation assets (Note 6) | 27,655,481 | 24,890,359 |
Total assets | $ 35,543,094 | $ 33,669,113 |
Liabilities Current liabilities Accounts payable and accrued liabilities (Note 7) | $ 2,206,555 | $ 710,788 |
Flow-through premium liability (Note 11) | - | 447,962 |
2,206,555 | 1,158,750 | |
Deferred income tax liability (Note 11) | 1,744,412 | 964,195 |
3,950,967 | 2,122,945 | |
Equity Shareholders' equity | 31,592,127 | 31,546,168 |
Total liabilities and equity | $ 35,543,094 | $ 33,669,113 |
Nature of operations and going concern (Note 1) Commitments and contingencies (Note 16) Subsequent events (Note 17)
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
Approved on behalf of the Board of Directors on August 27, 2026
"Wade Dawe" "Melinda Lee"
Director Director
1
FORTUNE BAY CORP. Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive LossExpressed in Canadian dollars | |||||
Three-month period ended June 30, 2026 | Three-month period ended June 30, 2025 | Six-month period ended June 30, 2026 | Six-month period ended June 30, 2025 | ||
Operating expenses | |||||
Salaries and benefits | $ 121,235 | $ 96,566 | $ 249,132 | $ 182,533 | |
Share-based compensation | 190,596 | 68,642 | 411,462 | 102,954 | |
Marketing and investor relations | 92,074 | 11,901 | 489,753 | 24,679 | |
Professional fees | 46,079 | 57,641 | 89,064 | 94,394 | |
Office, travel and general | 32,166 | 28,718 | 70,599 | 52,770 | |
Securities and regulatory | 27,023 | 26,299 | 54,573 | 50,659 | |
Finance fees and interest | 1,287 | 6,032 | 1,287 | 44,790 | |
Foreign exchange loss (gain) | (6,641) | 7,179 | (3,267) | 8,688 | |
Depreciation of property and equipment | 679 | 682 | 1,352 | 1,173 | |
(504,498) | (303,660) | (1,363,955) | (562,640) | ||
Other income (expenses) | |||||
Other income (Note 10) | 394,101 | 11,958 | 394,101 | 51,580 | |
Interest income | 27,863 | - | 58,982 | - | |
Unrealized gain (loss) on investments (Note 4) | (10,563) | 66,667 | 43,484 | 40,000 | |
Net loss before income tax | (93,097) | (225,035) | (867,388) | (471,060) | |
Deferred income tax recovery (expense) (Note 11) | (81,493) | 7,233 | (332,255) | (124,794) | |
Net loss and comprehensive loss for the period | $ (174,590) | $ (217,802) | $ (1,199,643) | $ (595,854) | |
Loss per share - basic and diluted | $ 0.00 | $ 0.00 | $ 0.02 | $ 0.01 |
Weighted-average number of common shares outstanding | 69,463,635 | 55,793,038 | 68,773,992 | 52,258,417 |
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
2
FORTUNE BAY CORP. Unaudited Condensed Interim Consolidated Statements of Changes in EquityExpressed in Canadian dollars | Number of Common Shares | Common Shares | Warrants | Contributed Surplus | Retained Earnings (Deficit) | Total Shareholders' Equity |
$ | $ | $ | $ | $ | ||
Balance, January 1, 2025 | 48,684,522 | 15,368,004 | 298,243 | 3,707,773 | 2,588,113 | 21,962,133 |
Net loss and comprehensive loss for the period | - | - | - | - | (595,854) | (595,854) |
Units issued pursuant to private placement (Note 9) | 9,375,000 | 2,400,000 | 600,000 | - | - | 3,000,000 |
Warrants issued as finder's fee (Note 9) | - | - | 14,219 | - | - | 14,219 |
Share and warrant issue costs (Note 9) | - | (40,347) | (10,087) | - | - | (50,434) |
Share-based compensation | - | - | - | 120,707 | - | 120,707 |
Balance, June 30, 2025 | 58,059,522 | 17,727,657 | 902,375 | 3,828,480 | 1,992,259 | 24,450,771 |
Balance, January 1, 2026 | 68,076,685 | 25,037,032 | 912,893 | 4,175,339 | 1,420,904 | 31,546,168 |
Net loss and comprehensive loss for the period | - | - | - | - | (1,199,643) | (1,199,643) |
Shares issued for warrants exercised (Note 9) | 1,587,500 | 913,516 | (199,141) | - | - | 714,375 |
Shares issued for stock options exercised (Note 9) | 235,000 | 106,800 | - | (43,250) | - | 63,550 |
Shares issued for DSUs exercised (Note 9) | 28,333 | 9,450 | - | (9,450) | - | - |
Share-based compensation | - | - | - | 467,677 | - | 467,677 |
Balance, June 30, 2026 | 69,927,518 | 26,066,798 | 713,752 | 4,590,316 | 221,261 | 31,592,127 |
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
3
FORTUNE BAY CORP. Unaudited Condensed Interim Consolidated Statements of Changes in Cash Flows Six-month period endedSix-month period ended
Expressed in Canadian dollars | June 30, 2026 | June 30, 2025 |
Operating activities | ||
Net loss for the period | $ (1,199,643) | $ (595,854) |
Charges to loss not involving cash: | ||
Depreciation of property and equipment | 1,352 | 1,173 |
Share-based compensation | 411,462 | 102,954 |
Deferred income tax expense (Note 11) | 332,255 | 124,794 |
Unrealized loss (gain) on investments (Note 4) | (43,484) | (40,000) |
Finance fees | - | 21,757 |
Net change in non-cash working capital related to operations (Note 12) | (45,966) | (324,716) |
Net cash used in operating activities | (544,024) | (709,892) |
Investing activities | ||
Net additions to exploration and evaluation assets | (3,403,631) | (386,792) |
Purchases of property and equipment | (58,380) | (5,167) |
Net cash used in investing activities | (3,462,011) | (391,959) |
Financing activities | ||
Proceeds received on financing, net of issue costs (Note 9) | - | 2,963,785 |
Cash received upon exercise of warrants (Note 9) | 714,375 | - |
Cash received upon exercise of stock options (Note 9) | 63,550 | - |
Repayment of loan from related party (Note 8) | - | (565,692) |
Net cash provided by (used in) financing activities | 777,925 | 2,398,093 |
Net change in cash during the period | (3,228,110) | 1,296,242 |
Cash, beginning of period | 7,900,489 | 456,661 |
Cash, end of period | $ 4,672,379 | $ 1,752,903 |
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
4