Financial Statements (NWXFS01312026)

These unaudited condensed interim financial statements of Newport Exploration Ltd. for the six months ended January 31, 2026, have been prepared by management and approved by the Board of Directors. These unaudited condensed interim financial statements have not been reviewed by the Company's external auditors.

"Ian Rozier" Director "Barbara Dunfield" Director Ian Rozier Barbara Dunfield

The accompanying notes are an integral part of these condensed interim financial statements.

CONDENSED INTERIM STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME

(Unaudited)

(Expressed in Canadian Dollars)

The accompanying notes are an integral part of these condensed interim financial statements.

The accompanying notes are an integral part of these financial statements.

CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited)

(Expressed in Canadian Dollars)

Capital Stock

The accompanying notes are an integral part of these condensed interim financial statements.

1. NATURE OF OPERATIONS

   Newport Exploration Ltd. (the "Company") was incorporated on September 19, 1979 under the Business Corporations Act, British Columbia and is in the exploration stage with respect to its exploration and evaluation asset. Based on the information available to date, the Company has not yet determined whether its exploration and evaluation asset contains ore reserves. Recoverability of the carrying amount of the exploration and evaluation asset is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. The Company also receives royalty payments related to a retained interest in certain petroleum licenses in Australia (note 5). The Company has no ability to determine the quantum or sustainability of future royalty payments, and as a result, there is no assurance the Company will continue to receive payments from its 2.5% gross overriding petroleum royalty ("GOR"). The receipts of royalty payments are not indicative of additional near-term income or any future income as the Company has no information to support or validate the expectation of future receipt. Any future royalty receipts are treated as fortuitous.

   The Company's head office and principal address is 202 - 2168 Marine Drive, West Vancouver, British Columbia, Canada, V7V 1K3. The Company's registered and records office is 1500 - 1055 West Georgia Street, Vancouver, British Columbia, Canada, V6E 4N7.

   These unaudited condensed interim financial statements have been prepared on the basis of accounting principles applicable to a going concern which assumes that the Company will be able to continue in operations for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of operations. To date, the Company has financed its operations primarily through issuance of common shares and from the receipt of royalty payments. The Company currently has cash and short term investments totalling $2,991,852 and net working capital of $3,392,349 which the Company believes is sufficient to fund it current business plans in the foreseeable future. In the longer term, additional equity or debt financing may be necessary to fund exploration and general and administrative activities or mine development or if royalty payments are not sufficient to fund such activities.

2. STATEMENT OF COMPLIANCE

   These unaudited condensed interim financial statements were authorized for issue on March 25, 2026 by the directors of the Company.

   Statement of compliance

   These unaudited condensed interim financial statements, including comparatives, have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") using accounting policies consistent with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and Interpretations of the IFRS Interpretations Committee.

   These unaudited condensed interim financial statements do not include all of the information required of a full annual financial report and is intended to provide users with an update in relation to events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the end of the last annual reporting period. It is therefore recommended that this financial report be read in conjunction with the audited annual financial statements of the Company for the year ended July 31, 2025.

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3. RECEIVABLES

   Trade and other receivables are comprised of the following:

   January 31, July 31,

   2026 2025

   GST receivable	$ 9,104	$ 7,952
   Petroleum royalty (Note 5)	345,975	565,592
   Other	5,048	2,577
   Total	$ 360,127	$ 576,121

   Information about the Company's exposure to credit risk and market risk for the Petroleum Royalty is included in

   Note 13.

4. EXPLORATION AND EVALUATION ASSET

   The Company has a 100% interest in the Chu Chua copper-gold property, a sulphide deposit located north of Kamloops, British Columbia. There are two separate 1% net smelter returns on Chu Chua to underlying parties. During the year ended July 31, 2025, the Company incurred $500 for claims maintenance.

5. PETROLEUM ROYALTY

   Under the terms of an agreement for the sale of CVL Resources (Barbados) Ltd. (formerly a wholly-owned subsidiary of the Company) in 2002, the Company retained a 2.5% GOR interest on any hydrocarbons discovered on certain petroleum exploration licences in Australia. During the six months ended January 31, 2026, the Company earned

   $786,926 (2025 - $1,431,606) of petroleum royalty income, of which $345,975 (July 31, 2025 - $565,592) is included in receivables as at January 31, 2026. Subsequent to January 31, 2026, the Company received AUD$255,521 which represents the royalty receivable net of a 30% withholding tax of AUD$109,509. The receipt of royalty payments is considered to be highly variable, and as such these payments are not indicative of additional near-term income or any future income.

   In 2016, the Australian Tax Office ("ATO") ruled that the Company's petroleum royalty income is taxable in Australia and, as such, the Company has 30% of its royalty payment withheld at source by Beach Energy Ltd ("Beach") and Santos Ltd ("Santos"), which Beach and Santos are required to remit to the ATO. The Company files annual tax returns in Australia.

6. RIGHT-OF-USE ASSET AND LEASE LIABILITY

The Company has an office lease for its head office in West Vancouver, BC, with a lease term originally to June 30, 2025, extended to June 30, 2026. The right-of-use asset and corresponding lease liability were initially measured at the present value of the remaining lease payments, discounted using the Company's incremental borrowing rate of 6.5%.

The continuity of the right-of-use asset for the year ended July 31, 2025 and six months ended January 31, 2026 is as follows:

Right-of-Use

Asset

The continuity of the lease liability for the years ended July 31, 2025 and six months ended January 31, 2026 is as follows:

The Company's exposure to liquidity risk is included in Note 13.

1. CAPITAL STOCK AND RESERVES

   1. Authorized share capital and earnings per share

      As at January 31, 2026, the authorized share capital of the Company is an unlimited number of common shares without par value.

      Basic and diluted per share amounts have been calculated based on the following:

      	January 31, 2026	January 31, 2025
      Weighted average number of common shares - basic	105,579,874	105,579,874
      Effect of outstanding stock options	1,927,207	-
      Weighted average number of common shares - diluted	106,507,081	105,579,874

      Only the "in-the-money" dilutive instruments impact the calculation of dilutive income per common share.

   2. Stock options

The Company has an incentive stock option plan (the "Plan") in place under which it is authorized to grant options to directors, employees, and consultants to acquire up to 10% of the issued and outstanding common shares of the Company to be issued from the treasury upon exercise of the stock options. Under the Plan, the exercise price of each option may not be less than the market price of the Company's stock as calculated on the date of Grant less any applicable discount permitted by the securities regulatory authorities. The options can be granted for a maximum term of 10 years and vesting periods are determined by the Board of Directors.

Details of options outstanding as at January 31, 2026 are as follows:

Number of Options

Exercise

Price Expiry Date

9,800,000 $0.08 December 30, 2029

1. CAPITAL STOCK AND RESERVES (cont'd)

   1. Stock options (cont'd)

      As at July 31, 2025 and January 31, 2026, the Company had the following stock options issued and outstanding:

      	January 31, 2026	July 31, 2025
      Issued and outstanding, beginning of period	9,800,000	8,675,000
      Issued	-	9,800,000
      Expired	-	(8,675,000)
      Issued and outstanding, end of period	9,800,000	9,800,000

   2. Warrants

      There are no warrant transactions during the year ended July 31, 2025 and the six months ended January 31, 2026.

2. RELATED PARTY TRANSACTIONS

   The aggregate value of transactions with key management personnel, consisting of the Chief Executive Officer

   ("CEO), Chief Financial Officer ("CFO") and members of the Board of Directors, for compensation are as follows:

   	January 31, 2026	January 31, 2025
   Management fees	$ 195,600	$ 195,600
   Consulting fees	286,350	286,350
   Directors fees	45,000	45,000

   In addition, during the six months ended January 31, 2026, company with a common officer and director reimbursed rent expense of $5,000 (2025 - $6,000) to the Company

   As at January 31, 2026, accounts payable and accrued liabilities included $15,000 (July 31, 2025 - $15,000) owing to directors of the Company.

3. COMMITMENTS

   The Company has a consulting contract with Ian Rozier, a director and CEO of the Company, for $47,725 per month and a consulting contract with a company controlled by Barbara Dunfield, a director and CFO of the Company, for

   $32,600 per month. These contracts remain in force on a continuous basis and can be terminated by the Company with 90 days written notice. If termination of services of either or both parties is without cause, the Company will be obligated to pay 36 months of service fees to either or both parties.

4. SEGMENTED INFORMATION

   The Company operates in one business segment being the acquisition and exploration of resource properties. The

   Company's mineral property is in Canada and the Company's royalty income is derived from Australia.

5. INCOME TAXES

   The Company files Australian tax returns annually on the royalty income and related expenses. The Company had a net Australian income tax receivable at January 31, 2026 of $82,004 which consists of accrued withholding taxes on its Royalty receivable at January 31, 2026 of $103,793 (July 31, 2025 - $192,088) and accrued Australian income tax receivable of $185,797 (Jul 31, 2025 - $361,766). The Company's July 31, 2025 Australian income tax receivable of

   $361,766 was received during the period ended January 31, 2026.

6. FINANCIAL AND CAPITAL RISK MANAGEMENT

Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values.

The carrying values of cash and cash equivalents, receivables (with the exception of GST receivable), and accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. As at January 31, 2026, the fair value of short-term investments was $2,183,312 (July 31, 2025 - $2,152,014), a level 1 fair value measurement.

The Company's Board of Directors has the overall responsibility for the established method and oversight of the Company's risk management framework.

The Company is exposed in varying degrees to a variety of financial instrument related risks and monitors the risk management processes, inclusive of documented investment policies, counterparty limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows:

Credit risk

Credit risk is the risk of financial loss associated with counterparty's inability to fulfill its payment obligations. The Company's credit risk is primarily attributable to cash and cash equivalents, short-term investments and receivables, the carrying value totalling $3,351,979, represents the Company's maximum exposure to credit risk. Management believes that the credit risk concentration with respect to financial instruments is remote because cash and cash equivalents and short-term investments are held with reputable Canadian financial institutions. Receivables consist mainly of the Company's royalty income. The royalty income comes from one company, and is typically received within 30 days after the quarter of production. The Company does not consider any of its current receivables past due. The Company believes any credit risk associated with its receivables is remote due to the historical success of collecting receivables.

Liquidity risk

The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when they come due. As at January 31, 2026, the Company had a cash and equivalents balance of $808,540 (July 31, 2025 - $460,866), with expected cash inflows from trade receivables maturing within two months of $360,127 (July 31, 2025 - $576,121) and short-term investments maturing within twelve months of $2,183,312 (July 31, 2025 -

$2,152,014) to settle expected cash outflows from current liabilities of $57,478 (July 31, 2025 - $106,377).

1. FINANCIAL AND CAPITAL RISK MANAGEMENT (cont'd) Financial risk factors (cont'd)

   Market risk

   Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity and equity prices. These fluctuations may be significant.

   1. Interest rate risk

      The Company has cash and equivalents balances and short-term investments. The Company's current policy is to invest excess cash in investment-grade short-term deposits certificates issued by its banking institutions. The Company periodically monitors the investments it makes and is satisfied with the credit ratings of its banks. The effect on net income and comprehensive income of a 1% change in interest rates is approximately $15,900.

   2. Foreign currency risk

      The Company is exposed to foreign currency risk with respect to its petroleum royalty payment, and its net income tax payable which are denominated in Australian dollars. The net effect on net income and comprehensive income of a 1% change in exchange rates between the Australian dollar and Canadian dollar foreign exchange is approximately $3,200. The Company does not currently hedge exchange risk.

   3. Commodity risk

The Company is exposed to fluctuations in commodity price with respect to its royalty on its GOR licenses in Australia. The effect on net income and comprehensive income of a 1% change in oil price is approximately

$300.

The Company's objectives when managing capital is to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. In the management of capital, the Company includes the components of shareholders' equity.

The Company manages the capital structure and makes adjustments to it, in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue new shares, issue debt, acquire or dispose of assets or adjust the amount of cash. In order to facilitate the management of its capital requirements, the Company monitors its expenditures against its available capital.

The Company is currently not subject to externally imposed capital requirements. There were no changes in the

Company's approach to capital management from the prior year.