GFG Resources: First Quarter 2026 Management Discussion & Analysis

Management's Discussion & Analysis

For the three months ended September 30, 2025 and 2024

Marc Lepage, Vice President, Business Development GFG Resources Inc.

202 - 640 Broadway Avenue Saskatoon, Saskatchewan Canada S7N 1A9

Phone: (306) 931-0930

[email protected] https://www.gfgresources.com

This Management's Discussion and Analysis ("MD&A") dated as of November 12, 2025, is to assist readers in understanding GFG Resources Inc.'s ("GFG" or the "Company") financial and operating performance for the three months ended September 30, 2025 and 2024. This MD&A should be read in conjunction with the Company's condensed interim consolidated financial statements (unaudited) as at September 30, 2025 and the Company's June 30, 2025 and 2024 audited consolidated financial statements and related notes thereto which were prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accountings Standards Board, as well as the annual MD&A for the years ended June 30, 2025 and 2024. The Board of Directors has approved the disclosure presented herein.

The Financial Statements of the Company have been prepared in accordance with IFRS Accounting Standards as issued by the International Accountings Standards Board. Except as otherwise disclosed, all dollar figures included therein and in the following MD&A are quoted in Canadian dollars, which is the functional and presentation currency of the Company. The functional currency of the entity is determined using the currency of the primary economic environment in which that entity operates.

Additional information can be found on the Company's website (https://www.gfgresources.com) or SEDAR+ (https://www.sedarplus.ca).

Certain sections of this MD&A may contain forward-looking statements.

All statements, other than statements of historical fact, made by the Company that address activities, events or developments that the Company expects or anticipates will or may occur in the future are considered forward-looking information, including, but not limited to, statements preceded by, followed by or that include words such as "may", "will", "would", "could", "should", "believes", "estimates", "projects", "potential", "expects", "plans", "intends", "anticipates", "targeted", "continues", "forecasts", "designed", "goal", or the negative of those words or other similar or comparable words.

Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Although the Company has attempted to identify important factors and various risks that could cause actual results, performance or achievements to differ materially from those described in forward-looking information, there may be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, and accordingly readers should not place undue reliance on forward-looking information.

See additional discussion under "Risks and Uncertainties" section for a non-exhaustive list of risk factors that could cause actual results to differ materially from the forward-looking information included in this MD&A.

The forward-looking information contained in this MD&A is expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information and readers should carefully consider the matters discussed under "Risks and Uncertainties" in this MD&A.

HIGHLIGHTS FOR THE QUARTER AND OTHER SIGNIFICANT EVENTS

• On November 3, 2025, the Company closed the first tranche of its private placement with the issuance of 11,411,438 premium flow-through units of the Company (each, a "Premium Unit") at a price of $0.2224 per Premium Unit for gross proceeds of $2,537,907.

• On November 7, 2025, the Company closed the second and final tranche of its private placement with the issuance of 8,550,128 flow-through common shares of the Company for gross proceeds of $1,581,773.

  OUTLOOK

  Through the remainder of 2025 and into the first quarter of 2026, GFG is positioned for a catalyst-rich period of exploration across its Timmins portfolio. The Company has commenced a 3,000-metre Phase 2 diamond drill program at the Aljo Gold

  Project that is designed to confirm and extend high-grade shoots within the Main Zone, expand multiple Hangingwall zones, and aggressively follow up on the newly discovered FW3 zone. Infill drilling on 40-60 metre centres and systematic step-outs are expected to advance Aljo toward resource-scale spacing while continuing to demonstrate the growth potential at Aljo as the gold system remains open in all directions.

  The Aljo program is complemented by an aggressive regional campaign along approximately 10 kilometres of the Pipestone Deformation corridor in the Wilkie, Walker and Carr townships at the Goldarm Property. Surface geochemistry, geophysics, sonic base-of-till and top-of-bedrock drilling, and targeted diamond drilling will be employed to refine anomalies and seed the next generation of drill targets. Recent district discoveries underscore the potential of this corridor to host high-grade, large-scale gold systems, and GFG is well-positioned to systematically test and advance this pipeline.

  At the Pen Gold Project, the Company continues to advance its high-priority Muskego and Chabot targets. At Muskego, new structural, geochemical, and petrographic data are being integrated into an updated geological model that highlights the prospectivity of altered porphyry intrusive suites along the Destor-Porcupine Fault. This work is generating a ranked portfolio of drill-ready targets. At Chabot, follow-up work around a recent intercept of 4.06 g/t Au over 4.2 metres has expanded the mineralized footprint and constrained structural orientations, supporting the development of a focused follow-up drill program.

  Management believes that the Company's balanced strategy-pairing near-term drilling at Aljo with advancing a strong pipeline of regional and Pen Gold targets-provides multiple opportunities for value creation. Near-term catalysts expected over the next 6 to 9 months include:

• Delivery of assay results from the current 3,000-metre Aljo drill program.

• Advancement of surface geochemistry, geophysics, and sonic drilling campaigns along the Pipestone corridor with select anomalies advanced to drilling in Q1 2026.

• Finalization of permitting and drill planning for follow-up programs at Chabot and Muskego.

With a strengthened geological model, multiple active exploration fronts, and a disciplined approach to target development, the Company anticipates steady news flow and a robust set of discovery opportunities through late 2025 and into 2026.

Sale of the Rattlesnake Property

On December 16, 2024, the Company closed the sale of its 100% owned Rattlesnake Property to Patriot for $1,700,000 in cash, a $1,000,000 non-interest bearing promissory note, due December 16, 2025, and 3,061,224 common shares (subject to resale restrictions) of Axcap Ventures Inc. (the parent company of Patriot) having an undiscounted value of $581,633. As part of the transaction, Patriot assumed the asset retirement obligation of $288,095.

The total gain on sale was recorded as follows:

The transaction had the following additional terms:

• Patriot would replace the USD $219,000 cash deposit held with the Wyoming Department of Environmental Quality.

• If a National Instrument 43-101 ("NI 43-101") compliant resource estimate in the Rattlesnake Property reveals a mineral resource greater than 3,000,000 ounces of gold in a Measured and Indicated or Inferred category, Patriot will pay to GFG a further $1 per total mineral resource ounce in cash or common shares of Patriot, at the election of Patriot.

• Patriot reimbursed GFG for all costs and expenses relating to the Rattlesnake Property incurred from the May 9, 2024 letter of intent to December 16, 2024. During the year ended June 30, 2025, the Company was reimbursed for

$342,042 (June 30, 2024 - $nil) of costs and expenses relating to the Rattlesnake Property.

Other Corporate Developments

Financing

On November 3, 2025, the Company closed the first tranche of its private placement with the issuance of 11,411,438 premium flow-through units of the Company (each, a "Premium Unit") at a price of $0.2224 per Premium Unit for gross proceeds of

$2,537,907. Each Premium Unit consists of one common share of the Company and one-half of one share purchase warrant (each whole such share purchase warrant, a "Warrant"), with each Warrant entitling the holder to acquire one additional common share of the Company at an exercise price of $0.24 for a period of 24 months from the date of issuance.

On November 7, 2025, the Company closed the second and final tranche of its private placement with the issuance of 8,550,128 flow-through common shares of the Company at a price of $0.185 per common share for gross proceeds of $1,581,773.

The Company was incorporated on January 24, 2012, under the laws of the Province of British Columbia, Canada. Following the completion of its initial public offering on June 26, 2012, the Company secured designation as a Capital Pool Company, according to the regulations of the TSX Venture Exchange (the "Exchange"). The Company's current corporate structure is primarily a result of the Rapier Acquisition and the following transactions:

1. On September 2, 2016, the Company entered into an arrangement agreement to acquire 100% of the issued and outstanding shares of 1070900 BC Ltd. ("1070900"), in exchange for shares of the Company which would result in a reverse take-over of the Company by the shareholders of 1070900 (the "Transaction"). As 1070900 is deemed to be the accounting acquirer for accounting purposes, its assets, liabilities and operations are included in the financial statements at their historical carrying values.

   On October 21, 2016, the Transaction closed and the Company acquired, on a one for one basis, all issued and outstanding shares of 1070900 in exchange for 38,503,483 common shares of the Company. Effective June 30, 2017, the Company completed the wind-up and dissolution of 1070900.

2. On July 5, 2016, 1070900 entered into an agreement and plan of share exchange with GFG Resources (US) Inc. ("GFG-US") to acquire all the issued and outstanding shares of GFG-US in exchange for common shares of 1070900, on a one share for one share equivalent basis. This would result in a reverse take-over of 1070900 by the shareholders of GFG-US (the "Arrangement").

On August 24, 2016, the Arrangement closed and the shareholders of 1070900 received 21,194,612 common shares of 1070900 for all the issued and outstanding shares of GFG-US. Out of 21,194,612 commons shares of 1070900, 19,050,419 common shares were issued in exchange for all of GFG-US's issued and outstanding common shares on a one for one basis. In addition to the common shares exchanged, 2,144,193 additional shares were withheld, pending the receipt of clearance certificates from the U.S. Internal Revenue Service. In January 2017, the Company received the required clearance and issued 2,144,193 common shares effective March 7, 2017.

The shareholders of 1070900 also issued 875,000 stock options in exchange for all the issued and outstanding stock options of GFG-US.

On October 27, 2016, upon receiving final acceptance from the Exchange, Crest Petroleum Corp. changed its name to GFG Resources Inc. and began trading on the Exchange as a Tier 2 Mining Issuer under the symbol "GFG". Further, on December 12, 2016, the Company announced that it had also started trading on the OTCQB Venture Market in the U.S. under the symbol "GFGSF".

The Company's head office address is Suite 202 - 640 Broadway Avenue, Saskatoon, Saskatchewan, S7N 1A9. The

Company's principal business activity is the exploration and acquisition of mineral properties.

In Ontario, the Company operates three gold projects (see Figures 1 & 2), each large and highly prospective gold properties within the prolific gold district of Timmins, Ontario. The Goldarm Property, Pen Gold and Dore Gold projects have similar geological settings to many of the gold deposits found in the Timmins Gold Camp which have produced over 70 million ounces of gold.

Utilizing two earn-in agreements, multiple purchase and sale agreements and a series of staking programs, GFG acquired and consolidated a large, highly prospective land package east of the Timmins Gold Camp (see Figure 2). This consolidated land package, the Goldarm Property, is comprised mainly of the Montclerg Gold Project (see news release dated October 25, 2021), the WWCC Property (see news release dated April 13, 2022) and the Aljo Gold Project (see news release dated April 27, 2022). In addition, the Company staked more than a 6,500-hectare land package that is adjacent to both the WWCC Property and the Aljo Gold Project.

The Aljo Gold Project (see Figure 2), which host portions of the historic Aljo Gold Mine, are located adjacent to the easternmost section of the Goldarm property. The Aljo Gold Mine was the focus of underground exploration and development during the early 1900's, including two shafts to depths of 400 and 575 feet. Limited, intermittent production occurred through the 1940's. During the 1980's and early 1990's, Kingswood Exploration completed surface exploration and drilling on the property between 1988 and 1992. This historic drilling returned high-grade gold mineralization associated with quartz-carbonate veins in highly carbonate-altered mafic volcanic rocks (see Table 1). Gold mineralization is also documented in the adjacent ultramafic and porphyric felsic intrusive rocks which, along with the presence of extensional- and shear-vein systems, provides support for multiple mineralized zones and the overall high prospectivity of the area.

(1) Drill intercepts are historical and GFG's QP has not verified the laboratory accreditation, analytical method, sample size or QA/QC procedures utilized for the historic drill results. True widths have not been estimated.

In late 2024 and early 2025, GFG completed a 12-hole, 2,600 metre Phase 2 drill program at the Aljo Gold Project, part of the Goldarm Property in the eastern portion Timmins Gold District. This program was designed to follow up on high-grade results

from earlier campaigns, test the downdip and strike potential of the Hangingwall ("HW"), Main, and Footwall ("FW") zones, and explore new targets in the Aljo West and Northwest areas. The program has been highly successful, both in extending known zones and in identifying a new high-potential footwall corridor (See Figures 3-4 and Table 2).

The HW Zone continues to deliver strong grades and continuity:

• ALJ-24-017 returned 1.74 g/t Au over 13.2 m, including 24.2 g/t Au over 0.5 m, confirming the HW Zone at shallow depths. This 30 m step-out hole demonstrated strong quartz-carbonate veining with visible gold, underscoring the near-surface potential of the zone.
• ALJ-24-018 extended the HW Zone down-dip by 50 m, intersecting 4.13 g/t Au over 5.2 m, including 8.98 g/t Au over 2.2 m.
• ALJ-24-020 intersected one of the thickest and highest-grade intervals reported at Aljo to date: 6.62 g/t Au over 11.2 m, including 7.24 g/t Au over 10.2 m, with visible gold. This hole also cut multiple additional intervals, such as 32.7 g/t Au over 0.5 m and 2.67 g/t Au over 3.8 m. This intercept represented a 25 m step-out from the previously reported

  13.94 g/t Au over 7.1 m in ALJ-24-012 (see news release dated August 19, 2024), extending the HW Zone eastward

  and highlighting its scalability.

  The HW Zone now demonstrates continuity from surface to over 300 m vertical depth and has consistently produced multi-metre, multi-gram intercepts with visible gold, providing confidence in the potential for both tonnage and grade.

  Main Zone:

  The Main Zone was targeted for both depth and lateral extensions:

• ALJ-24-018 returned 5.90 g/t Au over 1.4 m, extending mineralization 100 m down-dip from the 23.08 g/t Au over

  7.6 m intercept in ALJ-24-012 (see news release dated August 19, 2024).

• ALJ-24-019 intersected multiple stacked vein sets, including 8.0 g/t Au over 0.5 m and 5.11 g/t Au over 0.8 m. These results correlate with Main Zone intercepts from ALJ-23-004 (3.65 g/t Au over 6.3 m; see news release dated February 15, 2024) and historical drilling that returned 9.86 g/t Au over 8.0 m.

• ALJ-24-021 and ALJ-24-022 confirmed near-surface extensions of the Main Zone in the northwest, returning 4.24 g/t Au over 3.0 m (including 12.0 g/t Au over 1.0 m) and 4.38 g/t Au over 1.3 m (including 8.21 g/t Au over 0.7 m). These intercepts were 50-60 m step-outs, extending the mineralized system further along strike. ALJ-24-021 represents a 60 m step-out from ALJ-24-014 (9.94 g/t Au over 2.9 m; see news release dated November 28, 2024).

• ALJ-25-025 and ALJ-25-027 also confirmed shallow mineralization, with intercepts of 1.20 g/t Au over 11.4 m (including 5.12 g/t Au over 1.5 m) and 2.37 g/t Au over 4.0 m with visible gold. These holes stepped out 85 m from ALJ-23-004 (3.65 g/t Au over 6.3 m; see news release dated February 15, 2024).

  The Main Zone results reaffirm its role as a consistent, high-grade contributor, with stacked veining and strong associations to porphyry intrusions.

  Footwall Zones and Discovery of FW3 Zone:

  One of the most important outcomes of Phase 2 was the discovery of a new footwall zone (FW3):

• ALJ-24-017 also extended an earlier FW intercept by 55 m, returning 1.51 g/t Au over 5.2 m including 4.68 g/t Au over 1.5 m, further confirming continuity in the footwall environment.

• ALJ-24-019 cut a 45 m thick interval of altered basalt and porphyry, returning assays of 7.26 g/t Au over 0.6 m, 4.20 g/t Au over 0.7 m, and 2.17 g/t Au over 1.5 m. This represents a new corridor of mineralization not previously tested at depth, interpreted as a porphyry-associated gold system with significant scale potential. The FW3 discovery is a 60 m step-out from the FW2 intercept in ALJ-23-004 (13.35 g/t Au over 3.6 m; see news release dated February 15, 2024).

  FW3 represents a new target horizon for Aljo, with potential to deliver both additional high-grade lenses and broader zones of mineralization.

  Aljo West and Northwest Zones:

  Drilling also confirmed broader envelopes of mineralization in the Aljo West area, which may provide bulk-tonnage potential:

• ALJ-25-023 intersected 0.54 g/t Au over 20.4 m, including 2.54 g/t Au over 0.7 m, extending mineralization 85 m down-dip.
• ALJ-24-024 cut 0.69 g/t Au over 12.6 m, consistent with prior broad intercepts such as 1.39 g/t Au over 19.0 m and

  1.86 g/t Au over 17.5 m including 4.98 g/t Au over 3.6 m in ALJ-23-011 (see news release dated February 15, 2024).

  These results support the presence of lower grade but broad mineralized zones that could complement the higher-grade HW, Main, and FW3 intercepts.

  Geological Interpretation and Significance

  The Phase 2 drill program has confirmed that Aljo hosts a robust, multi-zonal gold system characterized by:

• Strike length exceeding 600 m and confirmed vertical continuity from surface to over 300 m.
• Stacked, multi-vein architecture across the HW, Main, and FW zones, with strong spatial associations to mafic-ultramafic contacts and porphyry intrusions.
• Visible gold in multiple intercepts, confirming the high-grade nature of the system.
• A new footwall discovery (FW3) that significantly expands the exploration footprint and underscores the scalability of the system.

  These results collectively demonstrate that Aljo has potential to host a sizeable, high-grade, multi-zonal gold system with both near-surface and deeper mineralization.

  On the back of these results, GFG initiated a ~3,000 m follow-up drill program in September 2025. The program will prioritize:

• Expansion of the FW3 discovery both along strike and down-plunge.

• Step-outs to further test depth and strike continuity of the HW and Main Zones.

• Advancement of targets in the Aljo West and Northwest areas.

In parallel, the Company has advanced regional exploration across the Goldarm Property, including geophysics, geochemistry, and sonic till sampling, with a particular focus on a 4 km segment of the Pipestone Fault. This corridor remains underexplored but has demonstrated potential for large, high-grade systems, supported by recent regional discoveries.

*Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length with a minimum 1 gram-metre product. Composites include internal dilution of up to 3 m at grades less than 0.20 g/t Au. Included intervals are calculated using a 3 g/t cut-off at a minimum 1 gram-metre product unless otherwise stated. True width is estimated to be 30 to 90% drilled length.

(1)Drill intercepts are historical and GFG's QP has not verified the laboratory accreditation, analytical method, sample size

or QA/QC procedures utilized for the historic drill results. True widths have not been estimated.

(2)Historical drill intercepts are referenced from the 1989 Kingswood Explorations Ltd. assessment report # 42A09NW0568 authored by Ken Lapierre.

In June 2024, the Company completed 5 holes (1,700 m) focused on testing the downdip and lateral extensions of the historic Aljo Mine and completed step-out holes related to the Company's 2023 drill program. Drilling was successful in expanding known mineralized zones and identifying new zones of gold mineralization which host significant visible gold and tellurides (see Table 3 and Figures 5 and 6).

Drilling at Aljo in 2024 continued to expand high-grade mineralization both below and beyond historical mine workings (see news releases dated February 15, 2024, and August 19, 2024).

• ALJ-24-012 returned one of the best intercepts to date, grading 23.08 g/t Au over 7.6 m including 215.00 g/t Au over

  0.8 m, 160 m down-dip of a historic 1988 intercept of 9.86 g/t Au over 8.0 m. The hole also confirmed continuity in the Footwall Zone with visible gold and strong sulphide veining, approximately 100 m down-dip of 2023 results of

  13.35 g/t Au over 3.6 m.

• ALJ-24-013 intersected nine zones of mineralization with assays up to 2.55 g/t Au over 1.5 m, correlating with the high-grade Main Zone intercepts of ALJ-24-012, and confirmed continuity in the Footwall Zone (1.20 g/t Au over 2.2 m).
• ALJ-24-014 discovered three new high-grade veins northwest of the mine, highlighted by 9.94 g/t Au over 2.9 m,

  10.40 g/t Au over 0.7 m, and 6.41 g/t Au over 1.1 m, with peak assays of 22.8 g/t Au. These results complement broader bulk-tonnage style intercepts drilled in 2023 to the west.

• ALJ-24-015, drilled west of ALJ-24-014, intersected 1.36 g/t Au over 2.9 m including 3.57 g/t Au over 1.0 m, extending the northwest trend.
• ALJ-24-016, 200 m east of the workings across the Kingswood Shear, intersected multiple narrow zones including

  3.19 g/t Au over 0.6 m, extending the system eastward.

  Table 3: Aljo Gold Project Assay Results 2024 Phase 1

  Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone	Visible Gold
  ALJ-24-012 and and incl. and incl. and incl. and and	8.0 19.2 72.3 73.3 100.0 112.4 223.9 225.3 251.4 440.6	16.0 27.5 79.3 79.3 113.3 113.3 231.5 226.1 265.8 444.0	8.0 8.4 7.1 6.0 13.3 0.9 7.6 0.8 14.5 3.4	0.86 0.81 13.94 15.92 1.71 19.20 23.08 215.00 0.40 0.81	HW HW HW HW HW HW Main Main Main FW	VG VG VG VG VG VG VG VG VG VG
  ALJ-24-013 and and and and and and and and	103.0 165.5 217.0 231.0 258.1 266.5 369.9 393.8 409.1	107.7 174.9 227.4 238.5 259.0 269.5 377.5 400.0 411.3	4.7 9.3 10.4 7.5 0.9 3.0 7.6 6.3 2.2	0.72 0.53 0.52 0.71 2.03 0.53 0.41 0.53 1.20	Main Main Main Main Main Main Main Main Main
  ALJ-24-014 and and and	46.5 86.8 91.7 177.6	47.5 87.8 94.6 183.2	1.0 1.0 2.9 5.6	3.83 2.57 9.94 2.07	Aljo (New) Aljo (New) Aljo (New) Aljo West	VG

  incl. and incl. and	182.1 229.6 236.1 279.0	183.2 236.8 236.8 280.0	1.1 7.2 0.7 1.0	6.41 1.31 10.40 2.14	Aljo West Aljo West Aljo West Aljo West
  ALJ-24-015 incl. and and	170.1 172.0 181.5 229.9	173.0 173.0 188.0 233.6	2.9 1.0 6.5 3.7	1.36 3.57 0.50 0.38	Aljo West Aljo West Aljo West Aljo West
  ALJ-24-016 and incl.	88.8 163.7 163.7	90.0 165.7 164.3	1.2 2.0 0.6	1.02 1.70 3.19	Aljo East Aljo East Aljo East

  *Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length with a minimum 5 gram-metre product. Composites include internal dilution of up to 3 m at grades less than 0.2 g/t Au. Included intervals are calculated using a 3 g/t cut-off at a minimum 5 gram-metre product unless otherwise stated. True width is estimated to be 30 to 90% of drilled length.

  Figure 5: Aljo Gold Project Plan View Map
  
  
  Figure 6: Drill Core Photos from ALJ-24-012
  
  
  

  Based on these latest high-grade drill intercepts including those from the Aljo HW Zone (see news release dated August 19, 2024), the Company engaged a structural geological consultant to review drillcore intercepts from Aljo and provide feedback on the overall geologic setting and describe the vein styles in detail. This work has lead to an increased understanding of structural controls on mineralization. Petrographic work on specific gold-bearing quartz veins and porphyry dykes was also prioritized in order to better delineate the different generations of veins and dykes. The geological model has also been advanced with help from recent drilling and review of historical drill logs. This work will allow for the mafic volcanic packages to be subdivided into different types including amygdaloidal and variolitic varieties. These distinguishing features have been shown to be key in different parts of the Timmins belt where locally, they can act as excellent host-rocks to gold mineralization.

  2023 Exploration Program - Aljo Gold Project Phase 2 Drill Program

  As part of the 15-hole Phase 2 drill program at its Goldarm property, the Company completed a total of eight holes at the Aljo Gold Project during the fourth quarter of 2023. The program focused on step-out and in-fill drilling at Montclerg and tested a spectrum of targets at Aljo located within the Goldarm Property east of Timmins, Ontario (see Table 4 and Figure 7).

  Commentary on Assay Results
• ALJ-23-004 intersected broad anomalous gold from surface to 265 m, including multiple high-grade intervals such as 3.65 g/t Au over 6.3 m and 18.40 g/t Au over 1.1 m. The hole ended in strong mineralization, returning 13.35 g/t Au over 3.6 m including 32.94 g/t Au over 1.4 m, demonstrating significant upside below historic workings.
• ALJ-23-005 tested the down-dip extension of prior high-grade results, intersecting several mineralized intervals including 0.36 g/t Au over 14.1 m.
• ALJ-23-009 confirmed high-grade potential near the north shaft, yielding 20.30 g/t Au over 0.5 m in quartz-carbonate veining along the mafic-ultramafic contact.
• ALJ-23-011 returned strong results northwest of the mine with 1.39 g/t Au over 19.0 m, 1.86 g/t Au over 17.5 m, and

  4.98 g/t Au over 3.6 m with visible gold, further linking gold mineralization to porphyry dykes beyond the immediate mine area.

• Holes ALJ-23-006, 007, 008 and 010 intersected anomalous grades up to 2.27 g/t Au over 1.2 m along a major mafic-ultramafic contact that remains highly prospective; historic work in this corridor included grab samples up to 276 g/t Au.

These results confirm the high-grade nature of Aljo, extend mineralization outside of historic workings, and reinforce the strong potential for new discoveries along multiple structural corridors.

Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length with a minimum 0.5 gram-metre product. Composites include internal dilution of up to 3 m at grades less than 0.2 g/t Au. Included intervals are calculated using a 3 g/t cut-off at a minimum 5 gram-metre product. True width is estimated to be 50 to 90% of drilled length.

Holes ALJ-23-006, 007, 008 and 010 did not return significant gold assays.

Through four transactions and a series of staking programs, GFG acquired and consolidated two large, highly prospective land packages west and southwest of Timmins, Ontario. The northern consolidated land package, the Pen Gold Project, consisted of three transactions which included the West Porcupine property purchased from Probe, the Pen Gold property with the acquisition of Rapier, and the Sewell property purchased from Alamos. The southern consolidated land package, the Dore Gold Project, consists of the Swayze property acquired from Osisko, and land added through a regional staking program (see news releases dated December 11, 2017, February 28, 2018, May 10, 2018 and June 25, 2018).

The Pen Gold and Dore Gold projects host highly prospective geology in an underexplored area. Previous exploration work and drilling on the properties have identified several distinctive and prospective zones of gold mineralization and targets that will be the focus of upcoming exploration programs.

The Pen Gold property is located 50 km southwest of the prolific gold district and town of Timmins, Ontario (see Figure 1). The property represents a land package of approximately 475 square km and is situated between Newmont's Borden Gold project and the Pan American Silver's Timmins West Mine. The property covers an approximately 55-kilometre-long section of Archean greenstone that contains the interpreted western extension of the PDFZ within the same geological setting that hosts most of the gold deposits found in the Timmins Gold Camp.

The Pen Gold Project is located in the Archean Superior Province of Northern Ontario. The Archean Superior Province is host to a variety of lithologies which range in age from 3.5 Ga to less than 2.76 Ga and form an east-west trending pattern of alternating terranes. It is divided into numerous subprovinces, bounded by linear faults and characterized by differing lithologies, structural/tectonic conditions, ages and metamorphic conditions.

The Abitibi Subprovince is a volcano-plutonic terrane comprising low metamorphic grade metavolcanic-metasedimentary belts. It contains lithologically diverse metavolcanic rocks with various intrusive suites and to a lesser extent chemical and clastic metasedimentary rocks. The individual greenstone belts within the Subprovince have been intruded, deformed and

truncated by felsic batholiths. The east trending Abitibi and Swayze greenstone belts of the Abitibi Subprovince have historically been explored and mined for a variety of commodities.

The Pen Gold Project lies within the Abitibi Subprovince, proximal to its western boundary with the Kapuskasing Structural Zone and the Ivanhoe Lake Cataclastic Zone. It is situated at the northern limit of the Swayze Greenstone Belt and is thought to be the western extension of the Abitibi Greenstone Belt (see Figure 8).

The Muskego target was outlined by base-of-till sampling on the west side of the Pen Gold Project (see Figures 9 - 10). The Muskego area is an expansive swamp and has no outcrop, which has impeded historic exploration efforts. Detailed geophysical and geochemical analyses and modelling has resulted in defining the Muskego area as a high-potential discovery area with several drill ready targets.

In February, the Company launched its inaugural drill program to test several greenfield targets across the 30 square kilometre Muskego target area. To date, the Company has tested 5 targets with 10 holes totaling 2,685 m. The Company also completed 2 drillholes totaling 234 metres at the Chabot Target ("Chabot") target located within the southeastern region of the Pen Property on a block that was recently acquired from Pelangio (see news release dated March 21, 2025). This winter drill program focused on systematically testing the Muskego North Shear Zone (Alpha and Foxtrot targets), the southern Muskego Shear Zone (Charlie target), and interpreted extensions of the Destor-Porcupine Fault (Delta target), and Chabot. The results are encouraging, particularly at the Alpha and Chabot targets, where meaningful gold and base metal mineralization was intersected. This inaugural drill program at Muskego has confirmed the potential of the Muskego shear system where the mineralization is aligning with key structural and lithological controls.

Technical Summary of Results (1)

The first five holes (MSK-25-001 to 005) focused on the Muskego North Shear Zone, host to a 2022 sonic bedrock sample that returned 5.18 g/t Au with associated pathfinder anomalism. Notably, hole MSK-25-004 intersected 1.00 g/t Au over 1.0 m in highly strained and brecciated chlorite-altered mafic volcanics at a depth of 64.7 m. This intercept projects well to the up-dip sonic sample location, confirming the presence of shear-hosted gold mineralization. Additional zones of stratabound and remobilized sulphides were observed across multiple holes, including anomalous base metal results such as 0.34% zinc over

0.75 m in MSK-25-001 and 0.3% zinc over 0.8 m within a 20.0 m interval of anomalous copper and zinc in MSK-25-004.

Hole MSK-25-005 tested a gold-in-till anomaly 1.3 km east of the Alpha Target and intersected stratabound and remobilized sulphides with up to 0.3% zinc and 0.14% copper.

Drilling at the Bravo target tested the southern margin and core of the interpreted Porcupine sedimentary basin (holes MSK-25-006 and 007). Although sulphide mineralization was weak, thick sequences of feldspar porphyry intrusions and felsic tuffs were encountered, with up to 2% disseminated pyrite noted locally.

Follow-up drilling on 2022 sonic till anomalies at Charlie returned a highlight of 0.57 g/t Au over 0.65 m (MSK-25-008) and identified broad quartz-carbonate veining within altered and strained porphyry units in MSK-25-009. These structural features warrant additional work.

Hole MSK-25-010 marked the first test of the Destor-Porcupine fault zone west of the historic Joburke Gold Mine. The hole intersected a rubbly fault zone from 100 to 159 m within strongly hematized, syenite-like porphyry and ultramafic rocks, validating the fault's presence and its potential for mineralization.

Significant near-surface gold mineralization was intersected in hole PEN-25-100, which returned 3.90 g/t Au over 3.5 m from 15 m downhole, including 9.62 g/t Au over 1.0 m, with nearly 0.1% copper. A second zone at 110 m depth returned 2.6 g/t Au over 1.3 m with over 1% (2)zinc and nearly 0.1% copper. These intervals were encountered in sericite-altered felsic tuffs and porphyries and suggest a previously unrecognized style of gold mineralization outside the typical iron-formation host.

In addition to the winter program, the Company completed a sonic drill program focused on the western portion of the Muskego target area (see Figure 11). The purpose of the sonic drill program was to gain till and bedrock samples to generate additional drill targets in this underexplored region. Further, the Company completed a 54 line-kilometre IP survey over the main portion of the Muskego target. The IP survey will support exploration efforts by refining current targets and outlining new targets.

(1) Drill intercepts are presented using a 1.0 g/t Au cut-off and as drilled length. Composites include internal dilution of up to 3 m at grades less than 1.0 g/t Au. True width is estimated to be 70 to 90% of drilled length. Sampling protocols, quality control and assurance measures and geochemical results related to historic drill core samples quoted in this news release have not been verified by the Qualified Person and therefore must be regarded as estimates.

(2)Full assay result is incomplete as overlimit assays remain pending.

The Dore Gold Project is located 40 km east of Newmont's Borden Gold project and 30 km northwest of IAMGOLD's Cote Lake gold project in Ontario. The land package consists of approximately 212 square km and covers a 12-kilometre-long section of Archean greenstone within the Swayze Greenstone Belt (see Figure 12).

The Dore Project is located within the central part of the Swayze Greenstone Belt that is part of the western extension of the Abitibi Subprovince, a Neo-Archean granitoid-greenstone belt. This greenstone belt is bounded and transected by major faults and large batholiths including the Kapuskasing Fault, the PDFZ, the Ridout Fault, the Kenogamissi batholith, and the Nat River and Ramsey granitoid complexes.

The Dore Gold property covers mafic and felsic volcanic packages along the Rundle Fault Zone and is located only a few km north of the Rideout Fault Zone that hosts the Cote Lake gold deposit.

The western limit and central zone of the Dore Gold property is located within the Bret Lake synform, which is composed mainly of metasedimentary rocks and metavolcanic flows from the Swayze-Dore stratigraphic package. The rocks are a mixed group of felsic to intermediate pyroclastic and volcaniclastic rocks intercalated with epiclastic metasedimentary rocks of the Swayze series. Irregular feldspar-quartz porphyry stocks, dykes, and sills, and medium to coarse-grained diorite-gabbro intrude all rocks within the supra-crustal sequences. Northwest striking diabase dikes intrude all older lithologies. Known gold mineralization described for this area is related with shear zones; porphyritic intrusions, and quartz-carbonate-sericite veins with associated carbonatization, silicification, chloritization, and potassic alteration.

The eastern-most claims of the property package cover the central section of the Bret Lake synform at the contact with a large intrusive center that include dioritic and syenitic marginal intrusive phases. Quartz-carbonate-sericite gold mineralization is reported in close special relationship with the intrusive rocks.

The Company carried out a widespread bulk till sample program late in 2023. A total of 215 samples were taken with an additional 45 samples collected during the summer of 2024. All grain counts and geochemical results have now been received and GFG is planning follow-up prospecting programs for the summer of 2025 to follow-up on anomalous gold grain counts in till up to 110 grains per 10kg sample. The goal is to develop these greenfield targets into drill targets for first drill testing late in 2025 or 2026.

The Montclerg Gold Project is located 48 km east of the prolific Timmins Gold Camp and is surrounded by multiple current and historic gold mines. The Project consists of five patented mining claims and 110 unpatented mining claims that cover 10 km of the highly prospective Pipestone Deformation Zone (see Figures 1-2) which hosts multiple gold deposits and mines in one of the most prolific gold districts in the world.

The Montclerg Gold Project overlaps the Pipestone Deformation Zone, a major northern splay of the Porcupine Destor Deformation Zone ("PDFZ") and is within 10 km's of the Stock Mine and Mill and the Taylor Gold Mine. The two gold prospects at the Montclerg Gold Project, MC and CX, occur north and south of the Pipestone Deformation Zone, respectively, and are associated with east-northeast trending fault zones that bisect the metasedimentary, felsic volcanic, mafic volcanic and felsic porphyric rocks of the area.

MC Prospect

Since the discovery of gold at the MC prospect in 1938, and prior to the acquisition of the Project by GFG, a total of 19,730 m were drilled in 96 holes that sporadically test the trend over a 1.5 km strike length. The vast majority of holes, approximately 80, were drilled prior to 1967 and focused on depths of less than 150 m. These historic holes were not sampled completely with only the most intensely veined intervals assayed.

Drilling in 2016 demonstrated the existence of up to five separate gold zones at the MC prospect. Well-sampled drill core shows three upper zones with grades and thickness on the order of 1.5 g/t Au over 25.5 m(1). Two deeper zones were intersected in several drill holes that tested the mafic volcanic footwall deeper than 200 m vertical. The two deeper zones are higher grade and have returned up to 3.28 g/t Au over 2.4 m, 3.69 g/t Au over 7.4 m (including 9.23 g/t Au over 2.2 m) and 6.05 g/t Au over

2.0 m(1). Broadly spaced drilling indicates this footwall system extends over a strike length of 175 m.

CX Prospect

The CX prospect, occurring about 350 m south of the MC prospect, was first drilled in 1987. A total of 4,700 m has been drilled in 23 holes that test portions of the 1.2 km trend to depths of less than 200 m. The geology and character of mineralization is analogous to the Clavos gold deposit with the mineralization at CX also occurring in close proximity to a quartz-feldspar porphyry body that intruded along the contact of the metasedimentary and ultramafic rocks within the Pipestone Deformation Zone.

Both the MC and CX prospects have only been drilled sporadically along strike and have only been tested to shallow depths (<200 m vertical) (see Figure 13). They remain open at depth and along strike. Importantly, the deeper high-grade zones at the MC prospect demonstrate the high prospectivity of the footwall mafic volcanic rocks. See Table 5 below for a list of selected highlighted historic drill results(1).

Drill intercepts are historical and presented using a 0.20 g/t Au cut-off and as drilled length. True width is estimated to be 50 to 90% of drilled length. GFG's QP has not verified the laboratory accreditation, analytical method, sample size or QA/QC procedures utilized for the historic drill results.

Potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a Mineral Resource on the Project to date and it is uncertain if further exploration will result in the Project being defined as a Mineral Resource.

The Company completed its 15-hole Phase 2 drill program at its Goldarm property during the fourth quarter of 2023. In the Phase 2 drill program the Company completed a total of 3,613 m from 15 holes (seven at the Montclerg Gold Project and eight at the Aljo Gold Project). The program focused on step-out and in-fill drilling at Montclerg and tested a spectrum of targets at Aljo located within the Goldarm Property east of Timmins, Ontario (see Table 6 and Figures 14 to 16).

The consistency of the results from both step-out and infill drilling demonstrate not only the strong continuity of the system but also the significant expansion potential at depth and along strike. In addition to strong results, the infill drilling has been critical in confirming the geometry and coherence of these mineral systems at shallow depths.

Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length with a minimum 0.5 gram-metre product. Composites include internal dilution of up to 3 m at grades less than 0.2 g/t Au. Included intervals are calculated using a 3 g/t cut-off at a minimum 5 gram-metre product. True width is estimated to be 50 to 90% of drilled length.

• MTC-23-058 intersected 0.79 g/t Au over 9.2 m within a broader altered package, confirming increased thickness of the Lower Footwall Zone below 350 m.
• MTC-23-059 returned the strongest result from the Lower Footwall Zone to date, grading 4.79 g/t Au over 12.8 m including 10.05 g/t Au over 4.3 m, a 150 m step-out from earlier high-grade intercepts.
• MTC-23-060 infilled the Main Zone, yielding broad intervals of 1.05 g/t Au over 24.9 m and 0.92 g/t Au over 41.8 m, while also defining the upper extent of the Lower Footwall Zone.
• MTC-23-061 delivered multiple zones, highlighted by 4.45 g/t Au over 2.5 m and 3.15 g/t Au over 3.3 m in the Lower Footwall Zone, demonstrating up-dip continuity.
• MTC-23-062 intersected 3.09 g/t Au over 12.8 m including 9.76 g/t Au over 2.9 m near surface in the Upper Main Zone, one of the highest-grade intercepts drilled in this bulk-tonnage style system, and 2.41 g/t Au over 4.1 m in the Upper Footwall Zone.
• MTC-23-063 returned 3.38 g/t Au over 5.8 m including 8.18 g/t Au over 1.8 m, successfully extending the Upper Footwall Zone closer to surface.
• MTC-23-064 intersected 0.66 g/t Au over 5.3 m in the Lower Footwall Zone, 150 m east of MTC-23-058, and a hangingwall zone of 1.84 g/t Au over 1.8 m, confirming the system extends beyond current limits.

  Collectively, the 2023 program demonstrates that Montclerg hosts broad zones of bulk-tonnage style mineralization in the Main Zone together with higher-grade shoots in the Footwall Zones. Results such as 4.79 g/t Au over 12.8 m in MTC-23-059 confirm that the system remains open at depth and laterally, supporting continued resource growth potential.

  Figure 15: Montclerg Gold Project Plan View Map
  
  
  Figure 16: Montclerg Gold Project MC Central Plan View Map
  
  
  Phase 1 Drill Program

  The Company completed its 13-hole 2023 Phase 1 drill program at the Montclerg Gold Project during the second quarter -final assay results were received in September 2023 (see Table 7 and Figures 17 & 18). The Phase 1 drill program was designed to complete infill drilling to confirm continuity in the MC Central area and drill significant step-out holes up to one km to the east. Overall, the drill program was successful in proving continuity along strike and at depth in the MC Central and proving the potential for additional discoveries over a km east of MC Central.

  Table 7: Final Assay Results from the 2023 Phase 1 Drill Program

  Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
  MTC-23-052	379.4	380.0	0.6	1.09	Undefined
  MTC-23-053	63.5	64.3	0.8	1.27	Upper Footwall
  MTC-23-055	72.0	74.8	2.8	1.70	Upper Footwall
  MTC-23-056	83.5	84.5	1.0	1.09	Upper Main
  and	129.0	130.0	1.0	0.29
  and	143.0	176.0	33.0	0.92	Main Zone
  and	189.4	191.4	2.0	1.56
  and	195.4	197.0	1.6	0.69
  and	202.9	205.8	2.9	0.60
  and	216.2	217.3	1.1	1.22
  and	226.3	227.7	1.4	0.56
  and	262.8	263.8	1.0	4.05	Lower Footwall
  and	277.0	280.3	3.3	0.23
  and	295.0	297.2	2.2	3.49	Lower Footwall
  incl.	295.5	296.6	1.1	5.78
  MTC-23-057	254.5	256.8	2.3	2.25
  and	346.0	348.7	2.7	10.21	Lower Footwall
  incl.	346.0	347.5	1.5	16.20
  and	375.5	376.7	1.2	2.42	Lower Footwall
  MTC-23-045	177.4	182.9	5.5	2.00	New Zone
  and	220.6	227.3	6.7	1.23	New Zone

  MTC-23-046 and incl. also incl.	117.0	121.5	4.5	0.54	New Zone
  	265.0	275.6	10.6	1.93	New Zone
  	265.7	266.6	0.9	6.63
  	272.0	273.9	1.9	4.94
  MTC-23-048	34.8	37.5	2.7	1.91	Upper Main
  and	47.3	61.2	13.9	0.50	Lower Main
  and	66.2	70.5	4.3	0.42
  and	88.0	92.1	4.1	4.10	Upper Footwall
  incl.	88.5	92.1	3.6	4.61
  MTC-23-054	56.8	60.6	3.8	1.15	Upper Footwall
  and	73.1	81.2	8.1	9.97	Upper Footwall
  incl.	73.6	79.8	6.2	12.89

  *Drill intercepts are presented using a 0.20 g/t Au cut-off and as drilled length with a minimum 0.5 gram-metre product. Composites include internal dilution of up to 3 m at grades less than 0.2 g/t Au. Included intervals are calculated using a 3 g/t cut-off at a minimum 5 gram-metre product. True width is estimated to be 50 to 90% of drilled length.

  ** Holes MTC-23-047, 049, 050, 051 had no significant gold assays.

  Commentary on Assay Results
• MTC-23-045 intersected two new zones 700 m northeast of MC Central, highlighted by 2.00 g/t Au over 5.5 m and

  1.23 g/t Au over 6.7 m, confirming system potential along strike.

• MTC-23-046 returned 1.93 g/t Au over 10.6 m including 6.63 g/t Au over 0.9 m, correlating with earlier low-grade intervals and supporting continuity of the Lower Footwall Zone 1 km east of MC Central.
• MTC-23-048 intersected 0.50 g/t Au over 13.9 m in the Main Zone and extended the Upper Footwall Zone with 4.09 g/t Au over 4.1 m including 6.28 g/t Au over 2.3 m.
• MTC-23-052 (1.3 km east) returned 1.09 g/t Au over 0.6 m, highlighting the eastern basalt panel as a new prospective corridor.
• MTC-23-053 & 055 confirmed shallow Upper Footwall mineralization with 1.27 g/t Au over 0.8 m and 1.70 g/t Au over 2.8 m, respectively.
• MTC-23-054 delivered one of the best intercepts to date from the Upper Footwall Zone with 9.97 g/t Au over 8.1 m, significantly extending mineralization toward surface.
• MTC-23-056 intersected broad Main Zone mineralization of 0.92 g/t Au over 33.0 m and high-grade Lower Footwall hits of 4.05 g/t Au over 1.0 m and 5.78 g/t Au over 1.1 m.
• MTC-23-057 confirmed the depth potential of the Lower Footwall Zone with 10.21 g/t Au over 2.7 m including 16.20 g/t Au over 1.5 m at 330 m vertical depth, the deepest high-grade intercept drilled at Montclerg to date.

  Collectively, these results demonstrate strong continuity within MC Central, expansion of the Footwall zones, and significant strike extension potential, underscoring the scale and growth opportunity of the Montclerg system.

  Figure 17: Montclerg Gold Project Plan View Map

  
  
  Figure 18: Montclerg Gold Project MC Central Plan View Map
  
  
  RESULTS OF OPERATIONS

  The following financial data is derived from the Company's consolidated financial statements for the three months ended September 30, 2025 and 2024:

  	September 30, 2025	September 30, 2024
  Expenses	$506,887	$368,394
  Net income (loss) before income taxes	$(165,741)	$58,693
  Basic and diluted income (loss) per share	$(0.00)	$0.00
  Total current assets	$5,866,167	$1,636,006
  Total current liabilities	$1,140,570	$703,270
  Working capital	$4,725,597	$932,736
  Exploration and evaluation assets	$37,514,814	$32,949,050

  Net income (loss)

  For the three months ended September 30, 2025, the Company reported a net loss before taxes of $165,741, or $0.00 per share, which included a $180,442 non-cash gain on the derecognition of the flow-through share premium; a $99,436 non-cash mark to market gain of the Company's investment; and non-cash accretion income of $32,877 on the unwinding of the promissory note. These were offset by $63,383 in non-cash share-based compensation. This compares to the prior year's net income before taxes of $58,693, or $0.00 per share, which included $39,191 in non-cash share-based compensation which was offset by the

  $106,011 non-cash gain on the derecognition of the flow-through share premium. Adjusting for the above non-cash items, net loss before taxes for the three months ended September 30, 2025 is $415,113 compared to a net loss before taxes of $8,127 for the prior period. This significant increase in loss was primarily due to the prior period's reported gain on sale of the Rattlesnake Property combined with current period increases in operating costs.

  Expenses

  For the three months ended September 30, 2025, the Company incurred total operating expenses of $506,887 versus $368,394 incurred during the prior period. Prior to non-cash share-based compensation of $63,383, total operating expenses for the current year were $443,504. For the comparative period, total operating expenses prior to non-cash share-based compensation of $39,191 were $329,203.

  Significant period over period expense variations are described below:

• Investor relations expenditures increased by $38,839, period over period. The increase was a result of added focus on trade shows and related travel costs combined with increased salaries;

• Memberships and dues increased by $5,625, period over period. The increase was due to corporate professional development expenditures incurred during the current fiscal quarter;

• Salaries and benefits increased by $66,666, period over period. This increase was due to compensation increases during the current fiscal quarter; and

• Share-based compensation increased by $24,192, period over period. The increase was due to the timing of expensing the estimated fair value of stock options granted combined with an increase in the fair value (Black Scholes) and volume of stock options granted during the prior fiscal year.

For the three months ended September 30, 2025, the Company reported deferred income tax expense of $91,000 (three months ended September 30, 2024 - $43,000). The deferred income taxes were mainly associated with the difference between the book value of the Company's exploration and evaluation assets and their cost base for tax purposes, as it was reduced as a result of flow-through financings which are typically used to fund the Company's exploration programs on its Goldarm and Pen and Dore Projects.

Interest and other expense includes interest expense on the Company's lease liability (see Note 12 to the Financial Statements) and other miscellaneous expenditures. Also, the prior period's balance included accretion expense on the Company's asset retirement obligation. For the three months ended September 30, 2025, interest and other expense was $5,436 (three months ended September 30, 2024 - $3,379).

Interest income includes interest earned on surplus cash placed on call with low-risk financial institutions. For the three months ended September 30, 2025, interest income was $29,229 (three months ended September 30, 2024 - $17,765). The increase, period over period, was a result of higher surplus cash earning interest at declining rates.

Other income includes accretion interest income reported on the unwinding of the discount on the promissory note receivable and, in the prior period, certain expense reimbursements received pursuant to the Rattlesnake Agreement. For the three months ended September 30, 2025, other income was $32,877 (three months ended September 30, 2024 - $70,453).

On December 16, 2024, the Company sold its 100% owned Rattlesnake Property to Patriot for $1,700,000 in cash, a $1,000,000 noninterest-bearing promissory note, due December 16, 2025, and 3,061,224 common shares (subject to resale restrictions) of Axcap Ventures Inc. (the parent company of Patriot) having an undiscounted value of $581,633. As part of the transaction, Patriot also assumed the asset retirement obligation of $288,095.

During the three months ended September 30, 2024, the Company recognized a gain on the sale of the Rattlesnake Property of

$243,636 (three months ended September 30, 2025 - $nil).

Historical quarterly financial information derived from the Company's eight most recently completed quarters is as follows:

The net income (loss) before taxes fluctuated over the eight quarters primarily because of variable non-cash recovery of premium on flow-through shares (see Note 11 to the Financial Statements). For the quarters ended December 31, 2024, September 30, 2024 and June 30, 2024, the net income (loss) before taxes was impacted by the deposit received and gain on sale of the Rattlesnake Property.

Total assets have generally trended higher over the past eight quarters. The increase to total assets over the eight quarters was a result of exploration and evaluation spending, funded by equity issues. Any decline in total assets quarter over quarter was largely due to eligible private placement proceeds being spent on general and administrative costs. For the quarter ended December 31, 2024, the significant increase in total assets was due to proceeds received on the sale of the Rattlesnake Property (see Note 8 to the Financial Statements) combined with the exercise of warrants (see Note 14 to the Financial Statements).

Fluctuations in total liabilities over the past eight quarters is due to the timing of trade payables, as they relate to exploration expenditures, and the recording of flow-through share premium liabilities (see Note 11 to the Financial Statements). In addition, over the past six fiscal quarters, the Company has reported a Deferred tax liability.

The Company has financed its operations to date through the issuance of common shares. The Company will continue to seek capital through various means including the issuance of equity. The Company has not pledged any of its assets as security for loans, or otherwise, and is not subject to any debt covenants.

The Company's liquidity and capital resources are as follows:

At September 30, 2025, the Company had cash and cash equivalents of $4,152,219 (June 30, 2025 - $4,649,387) and working capital of $4,725,597 (June 30, 2025 - $5,583,539). The decrease in working capital was primarily a result of general administrative expense and exploration and evaluation expenditures incurred at the Goldarm Property and the Pen and Dore Gold Projects. As the Company currently has no source of recurring income or operating cash flow to fund projected levels of exploration activities and associated overhead costs, it is dependent upon and will continue to be dependent on equity or other forms of financing.

During the three months ended September 30, 2025, the Company's cash flow used in operating activities was $277,750 (three months ended September 30, 2024 - $320,551). This decrease in net cash used in operating activities, period over period, was due to a $166,618 increase in cash used in operations prior to working capital changes, primarily a result of certain expenditure increases, which was more than offset by the $209,619 decrease in cash used as a result of changes in non-cash working capital items.

Cash used in investing activities for the three months ended September 30, 2025 was $208,542 (three months ended September 30, 2024 - $363,312). Cash expenditures for the current year were comprised of exploration expenditures at the Company's Goldarm Property and Pen and Dore Gold Projects of $507,324 (three months ended September 30, 2024 - $606,948). In addition, during the current fiscal quarter the Company received proceeds from the reclamation bond release of $298,782, pursuant to the sale of the Rattlesnake Property. Also, during the three months ended September 30, 2024, the Company received cash proceeds of $243,636, net of legal costs, from the sale of the Rattlesnake Property (see Note 8 to the Financial Statements).

The following is a continuity of the Company's exploration and evaluation expenditures: