2nd Quarter Report for the period ended June 30, 2026 MD&A

The following management discussion and analysis of Northisle Copper and Gold Inc. together with its subsidiary, North Island Mining Corp. (collectively "Northisle" or the "Company") is dated August 19, 2026 and provides an analysis of the Company's results of operations for the three and six months ended June 30, 2026.

This discussion is intended to provide investors with a reasonable basis for assessing the financial performance of the Company as well as certain forward-looking statements relating to its potential future performance. The information should be read in conjunction with Northisle's condensed interim consolidated financial statements for the three and six months ended June 30, 2026, and the notes thereto 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, 2025. Northisle's accounting policies are described in Note 3 of the aforementioned audited consolidated financial statements. All of the financial information presented herein is expressed in Canadian dollars, unless otherwise indicated.

The operations of the Company are speculative due to the high-risk nature of the mining industry. Northisle faces risks that are generally applicable to its industry and others that are specific to its operations. Additional risks not currently known to the Company, or that the Company currently deems immaterial, may also impair the Company's operations. Such risk factors could materially affect the value of the Company's assets, and future operating results of the Company and could cause actual results to differ materially from those described in the forward-looking statements contained in this management discussion and analysis. Reference is made to the discussion of forward-looking statements at the end of this document.

Northisle is a mineral exploration and development company incorporated on August 3, 2011, in the Province of British Columbia, Canada. The Company's principal business activity is the exploration and development of its North Island Project (the "Project" or the "North Island Project") on Vancouver Island. The Project is situated between 15 and 40 kilometres southwest of Port Hardy and contains the Hushamu, Red Dog, Northwest Expo and West Goodspeed Deposits and multiple other partially explored copper-gold porphyry occurrences. The Company's common shares trade on the TSX Venture Exchange under the symbol NCX and on the OTCQX Best Market under the symbol NTCPF.

• On August 6, 2026, Northisle announced a significant increase to the North Island Resource Estimate. Indicated Resource tonnage increased by 330 million tonnes (36%), while contained Cu increased by 22% and contained gold increased by 26%. See "2026 Resource Estimate" for additional details below.

• On June 29, 2026, Northisle announced the results of its AGM, including the election of the Board of Directors. Hume Kyle joined the Board and was appointed Chair of the Audit Committee and nominated to the Corporate Governance, Compensation and Nominating Committee.

• One June 10, 2026, the Company announced the results of drilling at the Red Dog deposit including the identification of an emerging high-grade trend in the eastern portion of the deposit.

• On May 1, 2026, Northisle announced the passing of Dale Corman, Non-Executive Chairman of the Board of Directors of the Company. Dale passed away on April 29, 2026, at the age of 88. Alex Davidson was appointed Chair of the Board of Directors of the Company.

• On April 7, 2026, Northisle announced the addition of Andrea Zaradic, M.A.S.c, P. Eng. as its new Vice President, Project Development, and the appointment of Kate Mueller, P.Eng. as its new Vice President, Sustainability.

• On March 31, 2026, Northisle announced infill results at Northwest Expo extended the strike of mineralization and added new high-grade intervals.

• On March 6, 2026, the Company completed financings for gross proceeds totaling $115 million.

  Additional details of the financing can be found in the corporate development section below.

• On February 23, 2026, Northisle announced that it had been included in the BC Government's Critical Minerals Office, which supports engagement with First Nations and communities, as well as coordination and preparation for an Environmental Assessment and future permitting processes.

• On January 21, 2026, the Company announced that it had completed 20,297m of drilling during 2025 and was targeting the completion of a pre-feasibility study on the North Island Project by the end of 2026 as well as the identification of a new mineralized target known as Cougar.

• On November 17, 2025, Northisle announced the continued growth of the West Goodspeed target to over 1.2km strike with additional high-grade intervals.

• On October 6, 2025, the Company announced details of its largest ever field program at the North Island Project, including that it was now targeting completion of 27,000m of drilling during 2025.

• On September 8, 2025, Northisle announced additional results from 2025 drilling at West Goodspeed at its North Island Project.

• On September 5, 2025, the Company announced that Kevin O'Kane had been appointed as Executive Vice President and Chief Operating Officer, and that Nicholas Van Dyk had been promoted to Executive Vice President, in addition to Chief Financial Officer and Corporate Secretary.

• On August 8, 2025, the Company completed financing for gross proceeds totaling $39.5 million with Wheaton Precious Metals Corp subscribing for $5 million. Additional details of the financing can be found in the corporate development section below.

• On July 2, 2025, the Company announced the initial results from its 2025 exploration campaign. The results at West Goodspeed and the addition of core scanning represent key steps in Northisle's 2025 exploration strategy, focused on increasing higher-margin resources in the Northwest Corridor and accelerating target generation across the 35-kilometre North Island Project porphyry belt.

• On May 22, 2025, Jill Donaldson was nominated to the Company's Board of Directors, and was elected at the 2025 AGM.

• On April 28, 2025, the Company announced that it had commenced its 2025 drilling and field program in the Northwest Corridor.

• On April 7, 2025, the Company announced the addition of Alex Davidson to the Board of Directors.

• On April 4, 2025, Northisle announced that the 43-101 Report in respect of the 2025 Preliminary Economic Assessment (the "2025 PEA") on the North Island Project had been filed.

• On March 18, 2025, Northisle announced the addition of Dr. Pablo Mejia Herrera, P.Geo as its new Vice President, Exploration, and the appointment of Robin Tolbert, P.Geo as Chief Geoscientist.

• On February 19, 2025, the Company announced the results of the 2025 PEA including a 29% after-tax IRR and a $2 billion NPV (7%). Additional details on the 2025 PEA can be found below in the section titled "2025 PEA".

On March 6, 2026, the Company completed a best efforts offering (the "2026 Brokered Offering") and a non-brokered private placement (the "2026 Non-Brokered Offering", and together with the 2026 Brokered Offering, the "2026 Offerings"). The 2026 Brokered Offering consisted of (i) 35,016,700 common shares of the Company ("2026 Common Shares") offered by way of a prospectus supplement at a price of $3.05 per 2026 Common Share (the "2026 Issue Price") for gross proceeds of $106,800,935; and (ii) 1,050,000 2026 Common Shares offered at the 2026 Issue Price on a private placement basis for gross proceeds of

$3,202,500. The 2026 Non-Brokered Offering consisted of 1,639,300 2026 Common Shares offered at the 2026 Issue Price on a private placement basis for gross proceeds of $4,999,865. The aggregate number of 2026 Common Shares issued pursuant to the 2026 Offerings was 37,706,000 for gross proceeds of

$115,003,300.

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 $34.5 million (the "2025 Brokered Offering") and gross proceeds from the non-brokered private placement with Wheaton Precious Metals Corp. ("Wheaton") were approximately $5 million (the "2025 Non-Brokered Offering, and together, the "2025 Offerings"). The 2025 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 2025 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 2025 Brokered Offering. The Agents' commission was comprised of 6% of gross proceeds except for subscribers on a president's list provided by the Company, to which a 2% commission was applied.

Concurrent to the 2025 Brokered Offering, the Company closed the 2025 Non-Brokered Offering which comprised of 4,762,000 common shares of the Company (the "2025 Non-Brokered Shares") at a price of $1.05 per 2025 Non-Brokered Share for gross proceeds of approximately $5 million. The 2025 Non-Brokered Shares sold under the 2025 Non-Brokered Offering were 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 2025 Non-Brokered Offering, Wheaton entered into a right of first refusal agreement (the "Agreement") with Northisle pursuant to which Wheaton paid Northisle $10,000 and was 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.

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.

On June 25, 2026, the Company held its Annual General Meeting. Hume Kyle was added to the Board of Directors and was subsequently appointed Chair of the Audit Committee and a member of the Corporate Governance, Compensation and Nominating Committee.

On April 7, 2026, the Company announced the addition of Andrea Zaradic, M.A.S.c, P. Eng. as its new Vice President, Project Development, and the appointment of Kate Mueller, P.Eng. as its new Vice President, Sustainability. In addition, Brian Ferrey was appointed Vice President, Corporate Development and Investor Relations of the Company in January 2026.

On September 13, 2025, the Company appointed Kevin O'Kane as Executive Vice President and Chief Operating Officer, in addition to continuing as a non-independent Director of the Company. In addition, Nicholas Van Dyk has been appointed Executive Vice President of the Company and will continue as Chief Financial Officer and Corporate Secretary.

On May 22, 2025, the Company announced that Jill Donaldson, JD, ICD.D, GCB.D had been nominated for election to its Board of Directors at its upcoming 2025 AGM, replacing Martino De Ciccio, who did not stand for re-election. Ms. Donaldson was elected to the Board at the 2025 AGM.

On April 6, 2025, the Company appointed Alexander Davidson to its Board of Directors. Mr. Davidson was subsequently elected to the Company's Board of Directors at its 2025 AGM.

On March 18, 2025, the Company appointed Dr. Pablo Mejia Herrera as Vice President Exploration. Robin Tolbert moved to the position of Chief Geoscientist and worked with Dr. Mejia and the exploration team on the ongoing exploration activities at the North Island Project before retiring in September, 2025.

The company owns one mineral property in British Columbia.

Northisle owns 100% of the mineral tenure comprising the North Island Project. The project is a district-scale, advanced stage copper-gold porphyry project containing the Hushamu, Red Dog, West Goodspeed and Northwest Expo Deposits and multiple other partially explored mineral occurrences. The primary focus of the Company is the discovery and development of porphyry-related deposits containing copper, gold, molybdenum, rhenium and other metals. The Project spans approximately 40km by 8km and is located to the northwest of the reclaimed BHP Island Copper Mine. Northisle has completed exploration work across the Project since 2011 and the Company, as well as previous operators, have published numerous technical studies on various deposits within the property.

Most recently, the Company published the 2026 Resource Estimate for the North Island Project which updates the mineral resource inventory in support of an upcoming pre-feasibility study targeted for Q1 2027. Northisle continues to actively explore the property.

The 2026 Resource Estimate contains an Indicated Resource of 1.2 billion tonnes grading 0.14% Cu, 0.22 g/t Au, 79.5 ppm Mo and 0.44 ppm Re for total contained metal of 10.1 billion lbs copper equivalent ("Cu Eq.") or 16.2 million oz gold equivalent ("Au Eq.") (recovery adjusted), plus an Inferred Resource of 260 million tonnes grading 0.12% Cu, 0.15 g/t Au, 62.0 ppm Mo, and 0.37 ppm Re for total contained metal of

1.5 billion lbs Cu Eq. or 2.6 million oz Au Eq. (recovery adjusted), at an $11.00/tonne NSR cut-off. The 2026 Resource Estimate is summarized in Error! Reference source not found. below and additional technical details can be found in the press release entitled "Northisle Announces Significant Increase to North Island Resource Estimate" and the associated technical report, which will be filed no later than September 20, 2026 and will be filed on the Company's website at www.northisle.ca and on SEDARplus at www.sedarplus.ca.

Northwest Expo

105,156

Indicated

                         Grade                                                            Contained Metal                  

  Tonnes  Cu Au Mo Re Cu Eq. Au Eq. Cu Au Mo Re Cu Eq. Au Eq.      NSR    

198 1,690

21

81

1,823 1,959

77.46

(000 T) (%) (g/t) (ppm) (ppm) (%) (g/t) (mm lbs) (000s oz) (mm lbs) (000 lbs) (mm lbs) (000s oz) ($/t)

West Goodspeed

113,070

397

573

15

99

873 1,166

35.14

Red Dog 90,463 0.19 0.22 32.6 0.20 0.42 0.41 379 627 7 40 845 1,181 48.51

Total Indicated

1,236,361

36.99

3,793 8,715 217 1,209 10,145 16,168

0.14 0.22 79.5 0.44 0.37 0.41

Hushamu 927,672 0.14 0.20 85.2 0.48 0.32 0.40 2,818 5,825 174 988 6,604 11,862 31.51

Northwest Expo

7,395

7

62

1

5

72

72

40.45

Inferred

West Goodspeed

38,991

111

157

4

32

243

323

28.24

Red Dog 3,421 0.21 0.14 31.6 0.22 0.37 0.36 16 16 0 2 28 39 42.43

Hushamu 210,433 0.12 0.14 64.0 0.38 0.25 0.32 545 979 30 176 1,174 2,142 24.52

Total Inferred

260,240

25.77

678 1,214 36 214 1,517 2,576

0.12 0.15 62.0 0.37 0.26 0.31

1. Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines.

2. The Mineral Resources have been confined by an open pit with "reasonable prospects of eventual economic extraction" using the 125% revenue factor case and the following assumptions:

   • Metal prices of US$3,587/oz Au, US$4.82/lb Cu, US$20/lb Mo US$2,000/lb Re

   • Forex of 1.32 $CDN:$US

   • Payable metal of 97.5% payable Au, Payable of 96.5% for Cu, 99% payable Mo, and 50% payable Re

   • Refining Costs of US$4.86/oz for Au, US$0.053/lb for Cu, US$0.95/lb for Mo, and US$0.60/lb for Re

   • Smelting costs for Cu of US$53.20/dmt for Cu and US$98.80 for Mo

   • Transportation and insurance costs of CDN$120/wmt proportionally distributed between Au, Cu and Mo

   • Royalty of 1% NSR for Red Dog and West Goodspeed deposits

   • Pit slopes are variable based on geotechnical zones and range from 31 degrees to 49 degrees, depending on sector

   • Mining cost of US$3.00/t for waste and mineralized material

   • Processing costs of CDN$10.30/t, general and administrative costs of CDN$0.70/t

3. Metallurgical recoveries for Au are: 91% for NW Expo, 84.5% for Red Dog, 78.2% for WGS and 59.2% for Hushamu in the CMG and 54.3% outside the CMG.

4. Metallurgical recoveries for Cu are variable at NW Expo and WGS as in Error! Reference source not found.. At NW Expo averaging 73.8% and averaging 79.2% at WGS. Cu recovery is 89.7% at Red Dog and 77.8% at Hushamu within the CMG and 75.4% outside the CMG.

5. Metallurgical recoveries for Mo are 45.0% at NWExpo and Red Dog and variable at WGS with an average of 43.0%, and 49.2% at Hushamu within the CMG and 44.6% outside the CMG.

6. Metallurgical recoveries for Re are 36% at NWExpo and Red Dog and variable at WGS with an average of 34.5% at WGS, and 39.3% at Hushamu within the CMG and 35.7% outside the CMG.

7. The NSR equations are:

   • NW Expo within the CMG: NSR (CDN$/t)=(Au*91%*CDN$146.04g/t)+(Cu*CuRec%*CDN$5.98+Mo%*45%*CDN$24.63 + Re%*36%*CDN$1306)*2204.62

   • Red Dog: NSR (CDN$/t)=(Au*84.5%*CDN$141.34g/t) + (Cu*89.7%*CDN$5.79+Mo%*45%*CDN$24.39 + Re%*36%*CDN$1293)*2204.62

   • Hushamu within the CMG: NSR (CDN$/t)=((Au*59.2%*CDN$141.29g/t) + (Cu*77.8%*CDN$5.78 + Mo%*24.63*49.2% + Re%*CDN$1306*39.3%)*2204.62

   • Hushamu outside the CMG: NSR (CDN$/t)=((Au*54.3%*CDN$142.20g/t) + (Cu*75.4%*CDN$5.82 + Mo%*24.63*44.6% + Re%*CDN$1306*35.7%)*2204.62

   • WGS: NSR (CDN$/t)=(Au*78.2%*CDN$140.08g/t) + (Cu*CuRec%*CDN$5.74+Mo%*MoRec%*CDN$24.39 + Re%*ReRec%*CDN$1293)*2204.62

8. The Equivalent equations are: Cu Eq. = NSR/(Cu_NSP*Cu_Rec%*22.0462), Au Eq. = NSR/(Au_NSP*AuRec%)

9. The specific gravity for each deposit and domain ranges from 2.62-2.86 depending on alteration and is assumed to be

   1.5 in overburden.

10. Numbers may not add due to rounding.

The Company is currently completing a pre-feasibility study ("PFS") for the North Island Project, which will incorporate the 2026 Resource Estimate, as well as updated recoveries, economic assumptions, and technical factors. The North Island Project PFS is anticipated to be completed during Q1 2027.

Northisle has contracted leading environmental consultants to develop a multi-faceted, multi-year environmental baseline study at the Project, which builds on the environmental, socio-economic and archeological data Northisle has been collecting since 2021.

Environmental baseline studies include a comprehensive assessment of the environmental conditions in a specific area prior to the construction of a proposed project. They are designed to document the existing environmental conditions of the area, including air, water, soil, and biotic resources, and serve to establish a baseline that can be used to assess the potential impact of a proposed project. Environmental baseline studies are an essential part of the mine permitting processes and help to ensure that mining companies operate in a conscientious and sustainable manner.

The first phase of baseline studies has been primarily led by Falkirk Environmental Consultants, SLR Consulting Limited, and Lorax Environmental Services. During 2026, the Company also added ERM and Ecologic to support key elements of the baseline scope. The 2025 environmental baseline program included meteorology, aquatics, terrestrial, hydrology, hydrogeology and geochemical data collection. Additional work will be completed in 2026, and the program is currently being optimized based on 2025 results and the input of First Nations and local communities. Work for future years will be developed based on the results of current programs.

Preliminary geotechnical studies have been initiated in the areas where project infrastructure is expected to be situated, including field mapping, surface geophysics, test pits, diamond and sonic drilling. All field work for the pre-feasibility study pit slope design criteria was substantially completed in Q2 2026. Geotechnical investigations to support the PFS will continue into Q3 and Q4, 2026.

Mineral exploration in the project area was initiated following the release of an aeromagnetic survey by the BC Department of Mines and the Geological Survey of Canada in 1963.

Mineralization was discovered at Hushamu and Red Dog in the 1960s. Subsequent drilling led to an initial resource estimate at Hushamu in 1975. Hushamu has seen significant exploration (at least 41,211m in 170 drillholes) from 1968 to 2022. Red Dog similarly saw significant drilling (~8000 m) periodically from 1968 to 1991, with renewed efforts in 2016 contributing to the NI-43-101-compliant initial resource estimate in 2017.

The area north of Northwest Expo was explored with IP and drilling in 1974. Minor drilling and geophysics occurred from 1994-1997, and significant drilling occurred from 2005-2008 (~6,695 m in 16 drillholes).

Drilling done by Northisle on the North Island Project prior to 2021 was primarily at Hushamu and Red Dog to better define the northern and southern limits, to infill drill and to test IP anomalies. From 2021 onwards, exploration activity has included: exploration, drilling and definition of the initial resource at Northwest Expo, selected in-fill drilling at Hushamu, exploration and drilling of the West Goodspeed prospect, and exploration and drilling at the Pemberton Hills target. Magnetic airborne survey and field exploration work has been conducted at several additional targets within the North Island Project.

In 2024, 2025 and to date in 2026, activities have been focused primarily on the Northwest Expo deposit, the West Goodspeed and Red Dog mineralized systems, as well as selected surface exploration at high-priority prospects on the property.

Summary of Recent Exploration

Exploration at Northwest Expo during 2024 had the objective of in-filling targeted high-grade areas of the deposit, providing additional vectoring information in support of future exploration, and testing several additional targets in the area. A total of 11 drill holes (NW24-27 through NW24-37) were completed during 2024, with the results of all drill holes now published. Five drill holes were published on November 5, 2024 in the press release titled "Northisle Announces Drill Results at Northwest Expo Including 132.8m Grading

1.49g/t Au Eq.", and the remainder were published on December 19, 2024 in the press release titled "Northisle Announces Final 2024 Drill Results Including 55.8m Grading 2.2g/t Au and 0.39% Cu".

Exploration at West Goodspeed during 2024 had the objective of stepping out from two discovery holes drilled during 2023 in order to determine the location and extent of mineralization in this new discovery area located less than 500 metres to the southeast of the Red Dog deposit. Drilling during 2024 at West Goodspeed included a total of 11 drill holes and confirmed the presence of porphyry-related mineralization over a strike of at least 1km, at least 200 metres width and at least 300 metres downdip. The results from this program were published in the Company's October 28, 2024 press release titled "Northisle Extends Strike of Mineralization at West Goodspeed to 1km", while the final hole (GS24-16) was released in the press release titled "Northisle Announces Final 2024 Drill Results Including 55.8m Grading 2.2g/t Au and 0.39% Cu".

In 2025, exploration was primarily focused on the following priorities:

• Expansion of the West Goodspeed prospect and infill of under-drilled portions of this mineralized trend

• Testing of the Cougar Target and other targets in proximity to Northwest Expo

• In-fill drilling to improve resource confidence ahead of the Company's planned pre-feasibility study

• Developing the regional thesis for discovery of additional porphyry-style deposits on the North Island porphyry belt

During 2025, the Company completed 20,297 metres of drilling across 58 holes at the North Island Project. This comprised 9,478 metres across 26 infill holes, 9,007 metres across 26 exploration holes, and 1,811 metres across 6 geotechnical holes. Drilling activity in 2025 focused principally on the Northwest Expo, Red Dog, West Goodspeed and Cougar areas, with the program designed both to support resource conversion for the ongoing pre-feasibility study and to advance the Company's broader exploration thesis across the North Island porphyry belt.

At West Goodspeed, 6,653 metres were drilled across 20 holes in 2025. Results released during 2025, including the final assay release announced on November 17, 2025, confirmed that mineralization extends over more than 1.2 kilometres of strike and to a vertical depth of approximately 280 metres below surface. Drilling outlined a broad zone of copper-gold mineralization extending from near surface to depth across the central and northwestern portions of the system and improved the Company's understanding of the lithological and structural controls on mineralization. Later results also confirmed the continuation of higher-grade zones toward the northwest, including strong intercepts in holes such as RD25-07 and RD25-04, further supporting the scale and continuity of the West Goodspeed system. The Company is assessing the potential for future drilling to test further extensions of mineralization to the east and at depth.

At the Cougar target, located between the Northwest Expo and Red Dog deposits, the Company completed 1,275 metres of drilling in 2025 and subsequently reported that the program identified copper-gold mineralization across all three holes drilled. Reported intercepts included 29.9 metres grading 0.36% Cu Eq. in hole NW25-38, 29.7 metres grading 0.37% Cu Eq. and 29.7 metres grading 0.34% Cu Eq. in hole NW25-39, and 42.0 metres grading 0.31% Cu Eq. in hole NW25-40. These results confirmed the presence of copper-gold mineralization at Cougar and support the interpretation of a broader mineralized footprint in the corridor between Northwest Expo and Red Dog. The Company is continuing to assess the exploration potential of this target.

At Northwest Expo, the 2025 program focused primarily on infill drilling to upgrade Inferred resources to the Indicated category in support of the North Island pre-feasibility study. A total of 9,867 metres across 26 holes was completed during the year. Assay results for this drilling were released during Q1 2026 and extended mineralization to over 1.2km.

At Red Dog, 8,112 metres across 31 holes were drilled in 2025 through to April 2026 as part of the infill and exploration programs intended to support resource conversion for the upcoming pre-feasibility study. Assays confirmed mineralization within Inferred resource areas and identified additional zones of copper mineralization.

Overall, the 2025 and 2026 drilling programs materially expanded the Company's understanding of the Northwest Corridor. West Goodspeed emerged as a larger and better-defined copper-gold system, at Cougar a new zone of copper-gold mineralization between existing deposits was identified, and infill drilling at Northwest Expo and Red Dog advanced the Company's resource conversion objectives for the North Island pre-feasibility study.

Regional Exploration Program

During 2025 and 2026, the Company advanced a district-wide stream sediment sampling program across the North Island Project. A total of 142 heavy mineral concentrate samples were collected as part of this regional program, which is designed to evaluate geochemical dispersion patterns across the Company's approximately 50-kilometre porphyry belt. Early results confirm the effectiveness of this multi-media sampling approach in detecting geochemical footprints associated with nearby porphyry systems. Results show strong consistency with expectations, highlighting elevated copper and gold concentrations in proximity to the main deposits and known exploration targets while also identifying additional prospective areas to the east of the property.

The Company is currently integrating the results into its generative exploration models to refine target definition and prioritize follow-up work. Northisle plans to conduct additional stream sediment sampling to follow up on anomalies identified during the 2025 regional program, with a focus on evaluating anomalous signatures that may indicate the presence of previously unrecognized porphyry-style mineralization. This follow-up work is expected to further refine the ranking of priority exploration areas and support the advancement of the highest-priority targets toward drill-ready status for potential evaluation over the balance of 2026

(Figure 3).

Northisle continues to advance its district-scale three-dimensional geological model of the North Island porphyry belt through the integration of regional geophysical surveys with an improved understanding of porphyry-style mineralization across the Company's principal deposits (see news release "Northisle Provides Update on Largest Ever Field Program at North Island", dated October 6, 2025). In collaboration with Mira Geoscience Ltd., an initial 3D model of Jurassic plutons has been constructed to delineate the spatial distribution of intrusive bodies associated with porphyry centres, forming the foundation of a belt-scale geoscientific framework to support future exploration targeting and regional discovery efforts.

Geophysical inversions are constrained using available geological information, including surface mapping and drilling data from historical programs and the 2025 and ongoing 2026 campaigns. The next phase of the work will focus on refining the structural interpretation through the integration of regional mapping with both regional and local airborne magnetic surveys. These evolving district-scale models are being used to evaluate the potential for extensions of known porphyry mineralization laterally and at depth at Northwest Expo, Red Dog, West Goodspeed and Hushamu, as well as to identify additional areas within the district that exhibit geophysical signatures comparable to those associated with known mineralization (Figure 6).

The Company also advanced its district-scale surface exploration program during the reporting period. By mid-June, approximately 2,000 road-based, multi-element geochemical samples had been collected across approximately 132 square kilometres. The program leverages the property's extensive road network to identify previously unrecognized prospective areas and refine existing exploration targets.

Detailed soil sampling over selected high-priority target areas also commenced in June, together with detailed geological mapping of priority prospects previously identified through the integrated belt-scale geological interpretation (Figure 7).

The Company's exploration expenses for the periods presented were as follows:

Three Months Ended June 30,

Six Months Ended June 30,

2025

$

24,468

94,170

276,324

2,512,981

57,106

156,019

Three Months Ended June 30,

Six Months Ended June 30,

Northisle incurred a loss and comprehensive loss of $9,042,519 ($0.03 per common share) for the three months ended June 30, 2026, compared to a loss of $2,892,711 ($0.01 per common share) over the same period in 2025. The Company significantly accelerated development activity at the North Island Project during the first half of 2026, which is reflected in the increased expenditures. Specific items contributing to differences are noted as follows:

• Mineral property expenditures increased by $5,538,272 compared to the same period in 2025 as the Company increased its project development activities, including its environmental, permitting, drilling and exploration programs during the current quarter.

• Professional fees increased by $544,362 compared to the same period in 2025 largely due to an increase in legal fees in relation to various contractual and regulatory matters during 2026.

• Shareholder communication and travel increased by $239,449 compared to the same period in 2025 largely due to the increased participation in industry and investor conferences together with related travel expenses.

• Wages and benefits increased by $351,098 compared to the same period in 2025 largely due to the expansion of the management team to support further development of the project.

• These increases were partially offset by a higher interest income of $729,583 compared to interest income of $32,728 during the same period in 2025.

  SIX MONTHS ENDED JUNE 30, 2026

  Northisle incurred a loss and comprehensive loss of $15,143,786 ($0.05 per common share) for the six months ended June 30, 2026, compared to a loss of $3,959,707 ($0.02 per common share) over the same period in 2025. The scale of the Company's operations has increased during these periods, while the nature of its activities has remained generally consistent. Certain items have resulted in differences in the comparative figures, as follows:

• Mineral property expenditures increased by $10,631,944 compared to the same period in 2025 as the Company increased its project development activities, including its environmental, permitting, drilling and exploration programs during the current quarter.

• Filing and regulatory fees increased by $160,668 compared to the same period in 2025 largely due to increased administrative costs associated with a general increase in exchange-related filing costs.

• Office and administration increased by $161,965 compared to the same period in 2025 largely due to increased administrative costs associated with a general increase in corporate activity.

• Professional fees increased by $717,707 compared to the same period in 2025 largely due to an increase in legal fees in relation to various contractual and regulatory matters during 2026.

• Rent and utilities increased by $106,559 compared to the same period in 2025 largely due to a new rental agreement that commenced in October 2025, which was not reflected during the same period in 2025.

• Shareholder communication and travel increased by $365,921 compared to the same period in 2025 largely due to the increased participation in industry and investor conferences together with related travel expenses.

• Wages and benefits increased by $888,899 compared to the same period in 2025 largely due to the expansion of the management team to support further development of the project.

• Interest income increased by $1,035,048 largely due to the funding raised during 2025 and Q1 2026 leading to increased interest earned from savings accounts as well as guaranteed investment certificates.

• During the six months ended June 30, 2026, the Company recorded a flow-through premium recovery of $1,818,762 compared to a flow-through premium recovery of $954,384 during the six months ended June 30, 2025. The increase of $864,378 is due to the increase in the premium applied to the 2025 flow-through financing, as well as higher overall activity levels.

  LIQUIDITY AND CAPITAL RESOURCES

  For the six months ended June 30,	2026	2025
  	$	$
  CASH PROVIDED BY (USED IN)
  Operating activities	(16,346,381)	(4,232,363)
  Investing activities	185,085	(14,101)
  Financing activities	109,462,130	174,879
  CHANGE IN CASH AND EQUIVALENTS	93,300,834	(4,071,585)
  Cash and cash equivalents - beginning	32,504,353	9,476,401
  CASH AND CASH EQUIVALENTS	125,805,187	5,404,816

  Northisle had $125,805,187 in cash and cash equivalents as at June 30, 2026, compared to $32,504,353 in cash as at December 31, 2025. As at June 30, 2026, the Company had working capital of $123,610,438 (December 31, 2025 - $28,584,114). The Company also reports adjusted working capital, a non-GAAP measure that excludes the non-cash flow-through premium liability to better represent liquidity. A reconciliation of working capital to adjusted working capital is as follows:

  	Six Months Ended June 30, 2026 $	Year Ended December 31, 2025 $
  GAAP working capital	123,610,438	28,584,114
  Flow-through premium liability	657,735	2,476,497
  Non-GAAP adjusted working capital	$124,268,173	$31,060,611

  The following table summarizes the maturity profile of the Company's financial liabilities:

  	< 1 year $	1-3 years $	>3years $	Total $
  Accounts payable and accrued liabilities	3,466,994	-	-	3,466,994
  Lease liabilities	314,253	259,204	206,087	779,544
  Total	3,781,247	259,204	206,087	4,246,538

  On March 6, 2026, the Company completed a best efforts offering (the "2026 Brokered Offering") and a non-brokered private placement (the "2026 Non-Brokered Offering", and together with the 2026 Brokered Offering, the "2026 Offerings"). The 2026 Brokered Offering consisted of (i) 35,016,700 common shares of the Company ("2026 Common Shares") offered by way of a prospectus supplement at a price of $3.05 per 2026 Common Share (the "2026 Issue Price") for gross proceeds of $106,800,935; and (ii) 1,050,000 2026 Common Shares offered at the 2026 Issue Price on a private placement basis for gross proceeds of

  $3,202,500. The 2026 Non-Brokered Offering consisted of 1,639,300 2026 Common Shares offered at the 2026 Issue Price on a private placement basis for gross proceeds of $4,999,865. The aggregate number of 2026 Common Shares issued pursuant to the 2026 Offerings was 37,706,000 for gross proceeds of

  $115,003,300.

  The Company will continue to require additional funding to maintain its ongoing exploration and development programs, property maintenance payments and operations. Its principal source of funds is

  the issuance of common shares. Northisle's common shares are publicly traded. As such, the price of its common shares is susceptible to factors beyond management's control including, but not limited to, fluctuations in commodity prices and foreign exchange rates and changes in the general market outlook. Should Northisle require funds during a time when the price of its common shares is depressed, the Company may be required to accept significant dilution to maintain enough liquidity to continue operations or may be unable to raise sufficient capital to meet its obligations.

  Operating Activities

  The main components of cash flows used for operating activities are discussed in the Results of Operations section, above.

  Investing Activities

  During the six months ended June 30, 2026, the Company:

• invested $45,510 in new office furniture for its new head office premises and paid a security deposit of $30,201 in connection with the new office lease;

• received interest on its invested cash.

  Financing Activities

  During the six months ended June 30, 2026, the Company:

• received $279,993 from the exercise of stock options compared with $33,953 received from the exercise of stock options and restricted share units during the comparable period in 2025;

• incurred lease payments totaling $125,711 compared with $29,711 during the comparable period in 2025;

• completed a brokered public offering by way of prospectus and private placement as well as a non-brokered private placement for gross proceeds of $115,003,300 compared with $172,500 from a non-brokered private placement during the comparable period in 2025.

In addition, the Company raised gross proceeds of approximately $39,685,842 in April and August 2025 through a brokered flow-through and non-flow-through financing, and non-brokered non-flow-through financings.

The table below summarizes the expected use of proceeds and the actual use of proceeds:

Note:

1. The financing closed in March 2026, and as such, the Company has not yet used the proceeds from the financing during the six months ended June 30, 2026.

   August 2025 Financing	Expected Use of Proceeds	Actual Use of Proceeds to Date	Variance (2)
   Flow-through critical mineral mining expenditures for exploration activities at the North Island Project	$15,001,497	$12,037,539	$2,963,958
   Exploration, project development and general corporate purposes	$24,511,845	$17,333,502	$7,178,343

   Notes:

2. The financing closed at the end of August, and as such, the Company has not yet used all of the proceeds from the financing during the six months ended June 30, 2026

The following table sets forth selected financial information derived from the Company's unaudited interim consolidated financial statements for each of the eight most recent quarters.

Mineral exploration and development is typically a seasonal business, and accordingly, the Company's administrative expenses and cash requirements will fluctuate depending upon the season. The Company's primary source of funding is through the issuance of common shares. When capital markets are depressed, the Company's activity level normally declines accordingly. As capital markets strengthen and the Company is able to secure equity financing on favourable terms, the Company's activity levels and the size and scope of planned exploration and development programs will also increase.

During the three months ended June 30, 2026, the Company's mineral property expenditures increased as the Company continued its engineering, project development, baseline, and exploration programs.

During the three months ended March 31, 2026, the Company's mineral property expenditures decreased compared to the three months ended December 31, 2025, as the Company completed its drilling and exploration program and continued work on its pre-feasibility study in 2026.

During the three months ended December 31, 2025, the Company's mineral property expenditures increased as the Company continued its 2025 drilling and exploration program and significantly expanded the number of drills and the size of its core processing facility.

During the three months ended September 30, 2025, the Company's mineral property expenditures increased as the Company continued its 2025 drilling and exploration program.

During the three months ended June 30, 2025, the Company's mineral property expenditures increased as the Company commenced its 2025 drilling and exploration program.

During the three months ended March 31, 2025, the Company's mineral property expenditure decreased compared to the three months ended December 31, 2024, as the Company had completed its drilling and exploration program and continued work on its preliminary economic assessment.

During the three months ended December 31, 2024, the Company completed its 2024 drilling and exploration program and continued work on its preliminary economic assessment.

During the three months ended September 30, 2024, the Company's mineral property expenditures increased relative to prior periods as the Company was executing its 2024 drilling and exploration program and began work on the 2025 PEA.

The Company's related parties include its directors and officers, who are the key management of the Company. The cash remuneration of directors and officers during the periods presented was as follows:

During the three and six months ended June 30, 2026, the Company incurred stock-based compensation expense to related parties of $406,621 and $643,380 respectively ($480,117 and $559,513 during the three and six months ended June 30, 2025, respectively).

During the six months ended June 30, 2026, the Company paid $51,000 in cash directors fees ($Nil during the three and six months ended June 30, 2025).

As at the date of this report, the Company has 333,243,851 common shares outstanding. The Company had no warrants outstanding and 9,108,035 stock options outstanding with exercise prices ranging from

$0.18 - $3.03 per stock option. In addition, there are 986,535 restricted share units and 749,100 deferred share units to be settled by way of common shares issued from treasury.

The Company leases vehicles and office space used at the North Island Project and has a multi-year lease for its site office in Port Hardy. The Company also entered into a new multi-year office lease agreement in Vancouver in June 2026.

The future minimum lease payments by calendar year are approximately as follows:

2031                          64,786  

The Company has no off-balance sheet arrangements and no long-term obligations other than those described through this document or in the description of mineral property assets contained in the notes to the condensed interim consolidated financial statements. The Company is not subject to any externally imposed capital requirements.

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 financial instruments. Financial instruments consist of cash, certain other assets, and accounts payable and accrued liabilities.

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 less than one year. 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.

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 Northisle's maximum exposure to credit risk.

Additional information is available for viewing at the Company's website at www.northisle.ca or on the Company's profile on the SEDAR+ website at www.sedarplus.ca.

Unless otherwise indicated, the Company has prepared the technical information in this MD&A ("Technical Information") based on information contained in the 2026 Resource Estimate, the Company's Annual Information Form for the year ended December 31, 2025 and news releases (collectively, the "Disclosure Documents") available under the Company's profile on SEDAR+ at https://www.sedarplus.ca. Each Disclosure Document was prepared by or under the supervision of a qualified person (a "Qualified Person") as defined in NI 43-101. Readers are encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information. Readers are advised that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.

Technical Information in the MD&A has been prepared under the supervision of Pablo Mejia, P.Geo., VP Exploration of the Company and Kevin O'Kane, P.Eng, Chief Operating Officer of the Company, each a Qualified Person as defined by NI 43-101.

This MD&A contains "forward-looking information" and "forward-looking statements" (referred to together herein as "forward-looking statements"). Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements are not historical facts. Forward-looking statements are used to describe management's future plans, objects and goals for the Company, and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such forward-looking statements.

Forward-looking statements in this MD&A include, but are not limited to:

• statements related to the Project and the Company's planned and future activities on the Project;

• the results and anticipated benefit from the Company's exploration campaigns;

• the anticipated timing and results of future exploration and drilling of the Project and the Company's assumptions and estimates used in its drill results, the interpretation of those results and its resource estimates;

• statements related to the 2025 PEA, the 2026 Resource Estimate and future technical studies;

• statements related to Northisle's ability to implement its business strategies associated with its mineral exploration and production;

• discussions of results from operations (including, without limitation, statements about the Company's opportunities, strategies, competition, expected activities and expenditures as the Company pursues its business plan, the adequacy of the Company's available cash resources and other statements about future events or results), performance (both operational and financial), business prospects, future business plans and opportunities;

• use of proceeds from the Offerings;

• expectations regarding the ability of the Company to raise capital and to continue its exploration and development plans on its properties; and

• statements as to management's expectations with respect to, among other things, the activities contemplated in this MD&A.

  Forward-looking statements are necessarily based upon a number of estimates and assumptions, including assumptions with respect to the factors below, that, while considered reasonable by the Company, are inherently subject to significant risks and uncertainties. Known and unknown factors could cause actual results to differ materially from those anticipated in the forward-looking statements, including, but not limited to, the following:

• mineral resource calculations are only estimates;

• significant uncertainty exists related to inferred mineral resources;

• actual capital costs, operating costs and production, and economic returns may differ significantly from those described in the 2026 Resource Estimate;

• mining operations require geologic, metallurgic, engineering, title, environmental, economic and financial assessment that may be materially incorrect and thus the Company may not be able to produce as expected;

• the Company does not have any operating revenue;

• the mineral exploration industry is intensely competitive;

• additional financing may not be available to the Company when required or, if available, the terms of such financing may not be favourable to the Company;

• failure to maintain relationships with the communities in which the Company operates and other stakeholders may adversely affect the Company's business;

• fluctuations in the demand for copper, gold and other minerals;

• the Company's exploration activities are dependent upon the grant of appropriate licenses, concessions, leases, permits and regulatory consents, which may be withdrawn or not granted;

• the Company's operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations;

• there is no guarantee that title to the properties in which the Company has a material interest will not be challenged or impugned;

• public health crises such as the COVID-19 pandemic may adversely impact the Company's business; and

• the other factors, risks, and uncertainties described in the Company's Annual Information Form this MD&A.

The actual results or performance by Northisle could differ materially from those expressed in, or implied by, any forward-looking statements. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Northisle is under no obligation to update any forward-looking statements, except as required under applicable securities law.