NorthIsle Copper and Gold: 2nd Quarter Report for the period ended June 30, 2025 Financial Statements

(Expressed in Canadian dollars)

Keena Hicken-Gaberria (signed) Director Sam Lee (signed) CEO and Director

(Expressed in Canadian dollars)

Three Months Ended June 30,

Six Months Ended June 30,

(Expressed in Canadian dollars)

(Expressed in Canadian dollars)

(Expressed in Canadian dollars)

1. NATURE OF OPERATIONS Nature of operations

   Northisle Copper and Gold Inc. (together with its subsidiary, "Northisle" or the "Company") is a Canadian exploration stage company which is focused on the exploration and development of its North Island Project on Vancouver Island.

   The Company is incorporated in British Columbia, Canada. Its head office is located at 1400 - 1040 West Georgia Street, Vancouver, British Columbia.

   The nature of the Company's operations requires significant expenditures for the acquisition, exploration, and evaluation of mineral properties. To date, the Company has not generated any revenue from mining operations and is considered to be in the exploration stage. The Company's operations have been primarily funded from equity financing. The Company will continue to require additional funding to maintain its ongoing exploration and evaluation programs, property maintenance payments, and operations.

2. BASIS OF PRESENTATION
   1. Compliance with International Financial Reporting Standards

      These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), as applicable to the preparation of interim financial statements including International Accounting Standard ("IAS") 34, Interim Financial Reporting. Accordingly, they do not include all the information and notes to the consolidated financial statements required by IFRS Accounting Standards for annual financial statements and should be read in conjunction with the Company's most recent audited consolidated financial statements for the year ended December 31, 2024.

      These financial statements were approved for issue by the Company's Board of Directors on August 20, 2025.

   2. Critical accounting judgments, estimates and assumptions

      The preparation of these condensed interim consolidated financial statements required management to make estimates, judgments and assumptions that affect the reported amounts and other disclosures in these consolidated financial statements. Estimates and the underlying 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 the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions.

      Estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods.

      Critical estimates are estimates and assumptions made by management that may result in material adjustments to the carrying amount of assets and liabilities within the next financial year. Critical estimates used in the preparation of these consolidated financial statements include, among others,

      (Expressed in Canadian dollars)

      the impairment of carrying values of equipment and mineral property interests, and the determination of realizable amounts of deferred tax assets and liabilities.

      Critical accounting judgments are judgments about the application of accounting policies that have been identified as being complex or involving subjective judgments or assessments. Critical accounting judgments include the expected economic lives of equipment and the identification of potential indicators of impairment for exploration and evaluation assets.

      At each reporting period, management applies judgment in assessing whether there are any indicators of impairment relating to mineral property interests. If any such indicator exists, then an impairment test is performed by management. Indicators of impairment may include (i) the period during which the entity has the right to explore in the specific area has expired during the year or will expire in the near future; (ii) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; (iii) sufficient data exists to support that extracting the resources will not be technically feasible or commercially viable; and (iv) facts and circumstances suggest that the carrying amount exceeds the recoverable amount. As at June 30, 2025, management identified no impairment indicators and consequently, impairment testing was not required.

   3. Consolidation

      These condensed interim consolidated financial statements include the accounts of the Company and its 100% controlled subsidiary, North Island Mining Corp. (collectively, the "Company"). Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All significant inter-company transactions and balances have been eliminated upon consolidation.

3. RIGHT-OF-USE ASSET

   The Company leases vehicles under lease agreements which expire on May 15, 2028. The leased vehicles have been recorded as a Right-of-Use Asset and are amortized over the life of the leases (See Note 6).

   Right-of-use Asset	Cost	Accumulated Depreciation	Carrying Amount
   DECEMBER 31, 2023	-	-	-
   Additions	195,742	(32,624)	163,118
   DECEMBER 31, 2024	195,742	(32,624)	163,118
   Additions	-	(24,468)	(24,468)
   JUNE 30, 2025	195,742	(57,092)	138,650

   (Expressed in Canadian dollars)

4. MINERAL PROPERTY INTERESTS
   1. Mineral property costs

      North Island Property

      $

      December 31, 2023 and 2024 10,016,000

      Changes during the period -

      JUNE 30, 2025 10,016,000

      The North Island Copper Gold Project (the "Project") consists of a contiguous block of mineral claims located on northern Vancouver Island in British Columbia, Canada. The claims include the Hushamu, Red Dog and Northwest Expo copper gold porphyry deposits, as well as numerous additional identified porphyry exploration targets and occurrences.

      Certain claims (historically known as the Expo claims) are subject to a 10% net profits interest royalty currently held by Royal Gold, Inc. Should a production decision be made on the Expo claims, the Company is required to make a cash payment of $1,000,000 to Sirit Inc., or its successors, within 60 days of the production decision.

      Certain other claims underlying the Project are known as the Apple Bay claims. Should a production decision be made regarding the Apple Bay claims, the Company is required to pay $800,000 in cash or in shares to Electra Gold Ltd., or its successors ("Electra"). The payment method is at the election of the Company. Electra maintains a limited right to explore the Apple Bay claims for non-metallic minerals subject to certain conditions including approval by Northisle.

      Claims underlying the Red Dog deposit are subject to a combined 3% net smelter return royalty, of which up to 2% can be repurchased at the option of the Company at any time for a cash payment of US$1,000,000 for each 1% repurchased.

   2. Mineral Property Expenditures

      Three Months Ended June 30,

      Six Months Ended June 30,

      	2025	2024	2025	2024
      	$	$	$	$
      Amortization of equipment	12,234	4,231	24,468	6,901
      Community engagement	51,114	23,662	94,170	51,342
      Engineering	1,179,458	262,269	1,325,857	328,463
      Exploration and camp support	1,153,777	1,202,226	1,463,448	1,607,751
      Environmental and permitting	24,472	65,854	57,106	68,534
      Salary and wages	79,852	93,291	156,019	165,791
      TOTAL	2,500,907	1,651,533	3,121,068	2,228,782

      (Expressed in Canadian dollars)

5. FLOW-THROUGH PREMIUM LIABILITY

   The flow-through premium liability balance as at June 30, 2025 of $1,357,028 (December 31, 2024 -

   $2,311,412) arose in connection with the flow-through share offering the Company completed on December 5, 2024. The reported amount is the remaining balance of the premium from issuing the flow-through shares. The flow-through premium is recognized in the statement of loss based on the amount of qualifying flow-through expenditures incurred by the Company.

   The Company is committed to incurring on or before December 31, 2025, qualifying Canadian exploration expenses as defined under the Income Tax Act, Canada ("Qualifying CEE") in the amount of $7,000,056 with respect to the flow-through share financing completed on December 5, 2024. None of the Qualifying CEE will be available to the Company for future deduction from taxable income. As at June 30, 2025, the Company has remaining commitment to incur Qualifying CEE of $4,058,519.

   On December 21, 2023, the Company completed a flow-through share financing and recorded a flow-through liability of $652,206 and committed to incur Qualifying CEE in the amount of $5,996,886. As at June 30, 2025, the Company had incurred all committed expenditures and no longer had a flow-through premium liability associated with this flow-through share financing.

   Accordingly, the Company recognized a flow-through premium recovery of $817,054 and $954,384 during the three and six months ended June 30, 2025 respectively ($145,691 and $196,328 during the three and six months ended June 30, 2024, respectively)

6. LEASE LIABILITY

   On May 15, 2024, the Company entered into vehicle lease agreements for three pickup trucks with a 48-month term and total monthly payments of $4,952 for the 48-month term. The vehicle lease agreements have an aggregate purchase option of $125,000 at the conclusion of the 48-month term.

   At the date of recognition, the lease liability was measured at the present value of the lease payments that were not paid as at that date. The lease payments are discounted using an annual interest rate of 8.99%, which is the contracted rate applicable to the lease agreement. The continuity of the lease liability is presented in the table below.

   	JUNE 30, 2025	DECEMBER 31, 2024
   Opening Balance	170,603	-
   Additions	-	195,742
   Lease payments	(29,711)	(36,306)
   Interest expense	7,252	11,167
   Closing Balance	148,144	170,603
   Less: current portion of lease liability	(59,422)	(59,422)
   Non-current portion of lease liability	88,722	111,181

   (Expressed in Canadian dollars)

   The remaining minimum future lease payments, excluding estimated operating costs, for the term of the lease are as follows:

   	YEAR	JUNE 30, 2025
   	2025	29,711
   	2026	59,422
   	2027	59,422
   	2028	19,807
   	Total minimum lease payments	168,362
   	Less imputed interest	(20,218)
   	Total lease obligation	148,144
   	Current portion of lease obligation	(59,422)
   	Non-current portion of lease liability	88,722
   7. SHARE CAPITAL

   1. Authorized share capital

      The Company is authorized to issue an unlimited number of common shares without par value.

   2. Financing

On April 15, 2025, the Company completed a non-brokered private placement, issuing 250,000 common shares at a price of $0.69 per common share for gross proceeds of $172,500. Issuance costs related to the private placement totaled $1,863.

On December 5, 2024, the Company completed a non-brokered private placement issuing 7,697,000 common shares at a price of $0.38 per common share and 10,836,000 critical mineral charity flow-through common shares at a price of $0.646 per common share for gross proceeds of $9,918,076. Issuance costs related to the private placement totaled $723,670. A flow-through premium liability of

$2,340,576 was recognized (Note 5).

(Expressed in Canadian dollars)

1. EQUITY INCENTIVE PLANS
   1. Stock Options Outstanding

      The Company has a stock option plan (the "Option Plan") that permits the grant of stock options for the purchase of up to 10% of the issued and outstanding common shares of the Company to directors, officers, employees, and consultants. Stock options generally vest over a two-year period from date of grant unless otherwise determined by the board of directors. As at June 30, 2025, the Company could issue an additional 11,875,395 stock options under the terms of the stock option plan.

      A summary of the Company's stock activity is presented below:

      	Number of Stock options	Weighted average exercise price $
      DECEMBER 31, 2023	15,146,433	0.22
      Granted	502,000	0.48
      Exercised	(5,223,000)	0.13
      Expired	(628,000)	0.31
      DECEMBER 31, 2024	9,797,433	0.28
      Granted	1,553,000	0.69
      Exercised	(194,100)	0.18
      JUNE 30, 2025	11,156,333	0.34

      In relation to the stock options, the Company recognized an expense of $387,805 and $447,023 during the three and six months ended June 30, 2025, respectively ($118,860 and $223,312 during the three and six months ended June 30, 2024, respectively) in the statement of loss and comprehensive loss.

      The average market price relating to options exercised during the six months ended June 30, 2025, was $0.69 (six months ended June 30, 2024 - $0.42).

      (Expressed in Canadian dollars)

      Stock options outstanding and exercisable are as follows:

      Expiry Date	Exercise Price	Number of Stock options outstanding	Average remaining contractual life (years)	Number of stock options exercisable
      November 4, 2025	$0.175	333,333	0.35	333,333
      November 17, 2025	$0.20	650,000	0.38	650,000
      December 29, 2025	$0.28	840,000	0.50	840,000
      July 14, 2026	$0.26	165,000	1.04	165,000
      December 16, 2026	$0.29	1,833,000	1.46	1,833,000
      April 8, 2027	$0.40	200,000	1.77	200,000
      November 21, 2027	$0.175	2,501,200	2.39	2,501,200
      May 26, 2028	$0.18	403,500	2.91	403,500
      December 21, 2028	$0.40	2,175,300	3.48	1,450,200
      April 1, 2029	$0.50	150,000	3.76	100,000
      July 18, 2029	$0.475	352,000	4.05	117,333
      April 4, 2030	$0.69	1,553,000	4.76	517,667
      JUNE 30, 2025		11,156,333	2.52	9,111,233

      During the six months ended June 30, 2025 the Company granted 1,553,000 (year ended December 31, 2024 - 502,000) options to employees, directors and consultants. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average assumption and resulting fair values for the grants are as follows:

      Inputs and assumptions	Six Month Ended June 30, 2025	Year Ended December 31, 2024
      Exercise price	$0.69	$0.48
      Market price	$0.69	$0.48
      Expected life of options (years)	5.0	5.0
      Expected stock price volatility	98%	109%
      Average risk-free interest rate	2.52%	3.40%
      Expected forfeiture rate	-	-
      Expected dividend yield	-	-
      FAIR VALUE PER OPTION GRANTED	$0.51	$0.37

      (Expressed in Canadian dollars)

   2. Restricted Share Units

      The Company granted restricted share units ("RSUs") in accordance with the share unit plan approved at the Company's 2021 shareholders meeting. These RSUs vest in three equal tranches: Tranche one

      - on completion of 12 months from grant date, Tranche two - on completion of twenty-four months from the grant date and Tranche three - on completion of thirty-six months from grant date. These RSUs can be cash or equity-settled at the Company's discretion. The Company has elected to classify the RSUs as equity-settled and as such, the RSUs are valued at the market price of the Company shares on the date of grant. Under the share unit plan the Company has reserved an amount not exceeding 7,000,000 shares for the issuance of RSUs, deferred share unit ("DSUs"), and performance share units ("PSUs") and, when combined with the Option Plan, no more than 10% of the Company's outstanding shares on a rolling basis. A summary of the Company's RSUs outstanding and the changes for the periods then ended, is presented below:

      	Number of shares issued or issuable on vesting
      DECEMBER 31, 2023	1,468,168
      RSUs Granted	433,800
      RSUs Converted to common shares	(314,282)
      RSUs Converted to cash	(339,917)
      DECEMBER 31, 2024	1,247,769
      RSUs Granted	623,000
      RSUs Converted to common shares	(437,101)
      JUNE 30, 2025	1,433,668

      In relation to RSUs, the Company recognized an expense of $98,126 and $154,175 during the three and six months ended June 30, 2025, respectively ($78,164 and $131,299 during the three and six months ended June 30, 2024) in the statements of loss and comprehensive loss. RSUs converted to cash are used to settle the related payroll withholding taxes.

      (Expressed in Canadian dollars)

   3. Deferred Share Units

      Only directors of the Company are eligible for DSUs. Each DSU vests over twelve months and is redeemed upon a director ceasing to be a director of the Company. These DSUs can be cash or equity-settled at the Company's discretion. The Company has elected to classify the DSUs as equity-settled and as such, the DSUs are valued at the market price of the Company shares on the date of grant. Under the share unit plan the Company has reserved an amount not exceeding 7,000,000 shares for the issuance of RSUs, DSUs, and PSUs. A summary of the Company's DSUs outstanding and the changes for the years then ended, is presented below:

      Number of shares issued or issuable on vesting

      DECEMBER 31, 2023 1,132,200

      DSUs Granted 212,000

      DECEMBER 31, 2024 and JUNE 30, 2025 1,344,200

      In relation to DSUs, the Company recognized an expense of $25,382 and $50,488 during the three and six months ended June 30, 2025 ($29,918 and $59,507 during the three and six months ended June 30, 2024) in the statements of loss and comprehensive loss.

2. RELATED PARTY TRANSACTIONS Management Compensation

   The Company's related parties include its directors and officers, who are the key management of the

   Company. The remuneration of directors and officers during the periods presented was as follows:

   Three Months Ended June 30,

   Six Months Ended June 30,

   	2025	2024	2025	2024
   	$	$	$	$
   Salary and Wages	239,435	268,455	439,350	464,705
   Share-based payments	480,117	202,207	559,513	360,173
   MANAGEMENT COMPENSATION	719,552	470,662	998,863	824,878

   Wages for certain officers of the Company are allocated to mineral property expenditures.

   As at June 30, 2025, the Company had $69,340 (2024 - Nil) receivable from directors and officers in relation to withholding tax expenses related to exercise of RSUs

   (Expressed in Canadian dollars)

3. SEGMENTED INFORMATION

   The Company's operations are in one segment: the acquisition, exploration and future development of

   mineral resource properties. All interest income is earned in Canada and all assets are held in Canada.

4. CAPITAL MANAGEMENT

   The Company is a mineral exploration and development company focusing on advancing the North Island Project. Its principal source of funds is the issuance of securities. The Company considers capital to be equity attributable to common shareholders, comprised of share capital, contributed surplus, and deficit. It is the Company's objective to safeguard its ability to continue as a going concern so that it can continue to explore and develop its projects.

   The Company manages its capital structure based on the funds available for its operations and makes adjustments for changes in economic conditions, capital markets and the risk characteristics of the underlying assets. To maintain its objectives, the Company may attempt to issue new shares, seek debt financing, acquire or dispose of assets or change the timing of its planned exploration and development projects. There is no assurance that these initiatives will be successful.

   The Company monitors its cash position on a regular basis to determine whether sufficient funds are available to meet its short-term and long-term corporate objectives.

   There has been no change in the Company's capital management practices during the period. The Company does not pay dividends. Neither the Company nor its subsidiary is subject to externally imposed capital requirements.

5. FINANCIAL INSTRUMENT RISK

   The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The Company has exposure to liquidity and credit risk from the use of financial instruments. Financial instruments consist of cash, certain other assets, reclamation bonds and accounts payable and accrued liabilities.

   1. Liquidity risk

      Liquidity risk is the risk that the Company will be unable to meet its financial obligations as they come due. The Company uses cash forecasts to ensure that there is sufficient cash on hand to meet short-term business requirements. The Company's accounts payable and accrued liabilities are all due in the short term. Cash is invested in highly liquid investments which are available to discharge obligations when they come due. The Company does not maintain a line of credit.

   2. Credit risk

      Financial instruments that potentially subject the Company to credit risk consist primarily of cash and reclamation deposits. These financial instruments are at risk to the extent that the institutions issuing or holding them cannot redeem amounts when they are due or requested. To limit its credit risk, the Company uses a restrictive investment policy. It deposits cash and cash equivalents in Canadian chartered banks as well as guaranteed investment certificates from Canadian chartered banks with a credit rating of R-1 (high) or equivalent. The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses, represents the Company's maximum exposure to credit risk.

      (Expressed in Canadian dollars)

6. SUBSEQUENT EVENT

On August 8, 2025, the Company completed a brokered and non-brokered private placement for gross proceeds totaling $39.5 million. Gross proceeds from the brokered listed issuer financing (LIFE) private placement offering were approximately $34.5m and gross proceeds from the non-brokered private placement with Wheaton Precious Metals Corp. ("Wheaton") were approximately $5m. The Brokered Offering consisted of (i) 9,338,000 common shares of the Company that qualify as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "CFT Shares") issued at a price of $1.6065 per CFT Share, and (ii) 18,573,086 common shares (the "Non-FT Shares", and together with the CFT Shares, the "Brokered Shares"), issued at a price of $1.05 per Non-FT Share, which includes 4,286,086 Non-FT Shares issued pursuant to the exercise of the Agents' over-allotment option. The Brokered Offering was conducted by a syndicate of agents led by Paradigm Capital Inc. as lead agent and sole bookrunner on behalf of a syndicate of agents including First Nations Financial Markets Limited Partnership, Red Cloud Securities Inc., Ventum Financial Corp., and Raymond James Ltd. (collectively, the "Agents"). The Agents received a cash commission of $1,874,197 in respect of the Brokered Offering. The Agents' commission was comprised of 6% of gross proceeds with the exception of subscribers on a president's list provided by the Company, to which a 2% commission was applied.

Concurrent to the Brokered Offering, the Company has closed the Non-Brokered Offering which comprised of 4,762,000 common shares of the Company (the "Non-Brokered Shares") at a price of $1.05 per Non-Brokered Share for gross proceeds of approximately $5 million. The Non-Brokered Shares sold under the Non-Brokered Offering are subject to a hold period pursuant to applicable Canadian securities laws expiring four months and one day from the date of issuance.

In connection with the Non-Brokered Offering, Wheaton has entered into a right of first refusal agreement (the "Agreement") with Northisle pursuant to which Wheaton has paid Northisle $10,000 and has been granted a right of first refusal in respect of precious metal streams or royalties on selected claims from the North Island Project plus a one kilometre area of interest surrounding the selected claims.