NorthIsle Copper and Gold : 4th Quarter Report for the year ended December 30, 2025 Financial Statements

About this update from Northisle Copper And Gold Inc.

Northisle Copper and Gold Inc. Consolidated Financial Statements For the years ended December 31, 2025 and 2024 (Expressed in Canadian dollars) Independent auditor's report To the Shareholders of Northisle Copper and Gold Inc. Our opinion In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Northisle Copper and Gold Inc. and its subsidiary (together, the Company) as at December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards). What we have audited The Company's consolidated financial statements comprise: the consolidated statements of financial position as at December 31, 2025 and 2024; the consolidated statements of loss and comprehensive loss for the years then ended; the consolidated statements of cash flows for the years then ended; the consolidated statements of changes in shareholders' equity for the years then ended; the notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information. Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report. PricewaterhouseCoopers LLP PwC Place, 250 Howe Street, Suite 1400 Vancouver, British Columbia, Canada V6C 3S7 T.: +1 604 806 7000, F.: +1 604 806 7806 Fax to mail: [email protected] "PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matter How our audit addressed the key audit matter Assessment of impairment indicators of mineral property interests Refer to note 2 - Basis of presentation, note 3 - Accounting policies and note 8 - Mineral property interests to the consolidated financial statements. The carrying value of mineral property interests was $10 million as at December 31, 2025. 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 Our approach to addressing the matter included the following procedures, among others: Assessed the judgment by management in determining the impairment indicators, which included the following: Obtained, for a sample of mining claims, by reference to government registries, evidence to support (i) the right to explore the area and (ii) claim expiration date. Read the board of directors' minutes and obtained budget approvals to evidence planned and budgeted substantive expenditure on further exploration for and evaluation of mineral resources in the specific area. Assessed whether a decision to discontinue exploration and evaluation in an area was taken and whether sufficient data exists to indicate that the carrying value of mineral properties will not be fully recovered from future development and production Key audit matter How our audit addressed the key audit matter recoverable amount. No impairment indicators were identified by management as at December 31, 2025. We considered this a key audit matter due to (i) the significance of the mineral property interests; (ii) the judgments by management in its assessment of indicators of impairment related to mineral property interests; and (iii) the high degree of subjectivity in performing procedures related to these judgments applied by management. based on evidence obtained in other areas of the audit. Other information Management is responsible for the other information. The other information comprises the Management's Discussion and Analysis. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of management and those charged with governance for the consolidated financial statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process. Auditor's responsibilities for the audit of the consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Company as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The engagement partner on the audit resulting in this independent auditor's report is Leonard Wadsworth. /s/PricewaterhouseCoopers LLP Chartered Professional Accountants Vancouver, British Columbia April 20, 2026 (Expressed in Canadian dollars) CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31, 2025 December 31, 2024 ASSETS Note $ $ Cash and cash equivalents 5 32,504,353 9,476,401 Mineral property exploration tax credit 204,863 - Other assets 993,355 243,790 CURRENT ASSETS 33,702,571 9,720,191 Reclamation deposits 232,175 182,175 Equipment 6 297,970 - Right of use asset 7 420,662 163,118 Mineral property interests 8 10,016,000 10,016,000 ASSETS 44,669,378 20,081,484 LIABILITIES Accounts payable and accrued liabilities 2,390,538 762,874 Flow-through premium liability 9 2,476,497 2,311,412 Current portion of lease liability 10 251,422 59,422 CURRENT LIABILITIES 5,118,457 3,133,708 Non-current portion of lease liability 10 183,066 111,181 LIABILITIES 5,301,523 3,244,889 SHAREHOLDERS' EQUITY Share capital 11 89,610,840 54,143,843 Contributed surplus 13 4,809,229 4,261,307 Deficit (55,052,214) (41,568,555) SHAREHOLDERS' EQUITY 39,367,855 16,836,595 LIABILITIES AND SHAREHOLDERS' EQUITY 44,669,378 20,081,484 Nature of operations 1 Subsequent events 19 Approved by the Board of Directors Keena Hicken-Gaberria (signed) Director Sam Lee (signed) CEO and Director (Expressed in Canadian dollars) CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS For the year ended December 31, 2025 2024 Note $ $ Mineral property expenditures 8b 13,097,124 7,389,111 Filing and regulatory fees 79,792 81,916 Office and administration 501,141 345,213 Professional fees 324,171 183,569 Rent and utilities 110,055 45,845 Share-based payments 13 1,305,442 942,626 Shareholder communication and travel 586,633 493,033 Wages and benefits 14 1,121,151 931,380 OPERATING EXPENSES 17,125,509 10,412,693 Foreign exchange loss/(gain) (236) 5,683 Interest income (477,702) (230,832) Flow-through premium recovery 9 (3,163,912) (681,370) LOSS AND COMPREHENSIVE LOSS 13,483,659 9,506,174 Basic and diluted loss per share 0.05 0.04 Weighted average number of common shares outstanding 271,563,198 236,238,698 (Expressed in Canadian dollars) CONSOLIDATED STATEMENTS OF CASH FLOWS For the year ended December 31, 2025 2024 Note Cash flows provided by (used in) $ $ OPERATING ACTIVITIES Loss and comprehensive loss (13,483,659) (9,506,174) Items not affecting cash Interest on lease obligation 21,045 11,167 Amortization 102,404 43,302 Interest income (477,702) (230,832) Flow-through premium recovery 9 (3,163,912) (681,370) Share-based compensation 13 1,305,442 942,626 Non-cash working capital items (2,212,723) 84,893 Change in other assets (597,321) 17,164 Change in mineral tax claim receivable (204,863) - Change in accounts payable and accrued liabilities 1,627,664 37,473 825,480 54,637 OPERATING ACTIVITIES (14,870,902) (9,366,644) INVESTING ACTIVITIES Purchase of equipment (307,655) - Reclamation bond (50,000) - Interest received 325,458 221,281 INVESTING ACTIVITIES (32,198) 221,281 FINANCING ACTIVITIES Warrant exercise 12 - 1,413,440 Private placement 11 39,685,842 9,918,076 Issuance costs 11 (2,256,173) (723,670) Stock option and restricted share unit exercise 13 608,805 508,552 Lease payments 10 (107,423) (36,306) FINANCING ACTIVITIES 37,931,051 11,080,092 CHANGE IN CASH AND CASH EQUIVALENTS 23,027,952 1,934,729 Cash and Cash Equivalents - Beginning 9,476,401 7,541,672 CASH AND CASH EQUIVALENTS - ENDING 32,504,353 9,476,401 (Expressed in Canadian dollars) CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY Note Number of Shares Share Capital $ Contributed Surplus $ Deficit $ Shareholders' Equity $ DECEMBER 31, 2023 228,114,487 44,339,707 4,346,995 (32,062,381) 16,624,321 Private placement 11 18,515,000 9,918,076 - - 9,918,076 Private placement issuance costs 11 - (723,670) - - (723,670) Flow-through premium 9 - (2,340,576) - - (2,340,576) Exercise of warrants 12 5,048,000 1,829,340 (415,900) - 1,413,440 Exercise of stock options and restricted 13 5,537,280 1,120,966 (612,414) - 508,552 share units Share-based payments 13 - - 942,626 - 942,626 Loss and comprehensive loss - - - (9,506,174) (9,506,174) DECEMBER 31, 2024 257,214,767 54,143,843 4,261,307 (41,568,555) 16,836,595 Private placement 11 32,923,086 39,685,842 - - 36,356,845 Private placement issuance costs 11 - (2,256,173) - - (2,256,173) Flow-through premium 9 (3,328,997) (3,328,997) Exercise of stock options and restricted 13 3,592,134 1,366,325 (757,520) - 608,805 share units Share-based payments 13 - - 1,305,442 - 1,305,442 Loss and comprehensive loss - - - (13,483,659) (13,483,659) DECEMBER 31, 2025 293,729,987 89,610,840 4,809,229 (55,052,214) 39,367,855 (Expressed in Canadian dollars) 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 financings. The Company will continue to require additional funding to maintain its ongoing exploration and evaluation programs, property maintenance payments, and operations. BASIS OF PRESENTATION Compliance with International Financial Reporting Standards The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"). These financial statements were approved for issue by the Company's Board of Directors on April 20, 2026. Critical accounting judgments, estimates and assumptions The preparation of these 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, 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 (Expressed in Canadian dollars) 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 December 31, 2025, management identified no impairment indicators and consequently, impairment testing was not required. Consolidation These 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. ACCOUNTING POLICIES The Company's material accounting policies are outlined below: Cash equivalents Cash equivalents include short-term liquid investments that are cashable or readily convertible into a known amount of cash and which are subject to insignificant risk of changes in value. Foreign currency translation The reporting currency and functional currency of the Company and its subsidiary is the Canadian dollar. In preparing the financial statements of the individual entities, transactions in currencies other than the entity's functional currency are recorded at the rates of exchange prevailing at the dates of the transactions. At each statement of financial position date, monetary assets and liabilities are translated using the period end foreign exchange rate. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. All gains and losses on translation of these foreign currency transactions are included in the statement of loss. Financial instruments Financial instruments consist of financial assets and financial liabilities and are initially recognized at fair value, plus transaction costs if the financial instrument is not subsequently measured at fair value through profit and loss. Financial assets are measured subsequently at amortized cost, fair value through other comprehensive income ("FVOCI"), or fair value through profit and loss ("FVTPL") based on the business model for managing the financial asset and the contractual cash flow characteristics of the financial asset. Financial assets which are investments in equity instruments are measured subsequently at FVTPL unless they are (Expressed in Canadian dollars) not held for trading and are designated as FVOCI. Financial liabilities are measured subsequently at amortized cost, except for derivatives and certain other specified exceptions measured FVTPL. The Company classifies its financial instruments as follows: Financial instrument Classification under IFRS 9 Cash Amortized cost Reclamation deposit Amortize d cost Accounts payable and accrued liabilities Amortized cost Financial instruments classified as amortized cost are measured at amortized cost using the effective interest method. Financial assets measured at amortized cost are subject to a loss allowance for expected credit losses resulting from default events that are possible within 12 months after the reporting date, or an allowance for lifetime expected losses where credit risk has increased significantly since initial recognition. Changes in the amount of expected credit losses are recognized as an impairment gain or loss in profit and loss. Financial assets are derecognized when the contractual rights to the cash flows expire, for certain transfers, or when there is no reasonable expectation of recovering the financial asset. Financial liabilities are derecognized when the obligation specified in the contract is discharged, cancelled or expires. Fair value measurements are determined based on quoted prices when these are available or other appropriate valuation methods. Gains and losses on investments in equity instruments designated as FVOCI are recognized in other comprehensive income until they are derecognized. Dividends from these investments are recognized in the statement of loss. The Company classifies and discloses fair value measurements based on a three-level hierarchy: Level 1 - inputs are unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 - inputs other than quoted prices in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 - inputs for the asset or liability are not based on observable market data. The Company has determined the estimated fair values of its financial instruments based upon appropriate valuation methodologies. Exploration and evaluation assets and exploration expenditures Direct costs related to the acquisition of mineral properties held or controlled by the Company are capitalized on an individual property basis until the property is put into production, sold, abandoned, or determined to be impaired. Administration costs and exploration costs are expensed as incurred. When a property is placed into commercial production, capitalized costs will be depleted using the units-of-production method. The Company classifies its mineral properties as exploration and evaluation assets until technical feasibility and commercial viability of extracting a mineral resource are demonstrable. At this point, the exploration and evaluation assets are transferred to property and equipment. The establishment of technical feasibility and commercial viability of a mineral property is assessed based on a combination of factors, such as the extent of established mineral reserves, the results of feasibility and technical evaluations, and the status of mining leases or permits. (Expressed in Canadian dollars) Proceeds received from the sale of royalties or government assistance programs are recognized as a reduction in the carrying value of the related exploration and evaluation assets when the proceeds are more likely than not to be received. If the value of the applicable property is less than the value of the amount received, the difference is recorded as a gain in the statement of loss in the period in which the payment is more likely than not to be received. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers, or title may be affected by undetected defects. Property and equipment Property and equipment are depreciated using the straight-line method based on their estimated useful lives, which range from three to ten years. Where an item of plant and equipment comprises major components with different useful lives, the components are accounted for as separate items of plant and equipment. The depreciation method, useful life and residual values of property and equipment are assessed annually. Depreciation is recorded over the estimated useful lives of the assets on a straight-line basis: Storage system 10 years Leases Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Each lease payment is allocated between the liability and finance expense. The finance expense is charged to the statements of loss and comprehensive loss over the lease period. The right-of-use asset is depreciated over the shorter of the asset's useful life or the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured at the present value of lease payments. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the Company's incremental borrowing rate Impairment of non-financial assets The Company's assets are reviewed for indication for impairment at each balance sheet date in accordance with IFRS 6 - Exploration and evaluation of mineral resources. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment charge (if any). The recoverable amount used for this purpose is the higher of the fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assignments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying value, the carrying value of the asset is reduced to its recoverable amount. An impairment charge is recognized immediately in the statement of loss. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to a maximum amount equal to the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. (Expressed in Canadian dollars) Share-based payments The Company grants stock options, restricted share units ("RSUs") and deferred share units ("DSUs") of the Company to directors, officers, employees and consultants. The Company uses the fair value method of accounting for options granted under its stock option plan. Share-based payments granted to directors, officers, employees and others providing similar services are measured at fair value, upon issuance, which is charged to the statement of loss over the applicable vesting period, with an offsetting credit to contributed surplus. The fair value of stock options is calculated using the Black-Scholes option pricing model and the fair value of RSUs and DSUs are determined based on the closing price of the shares on the day of grant. The cumulative expense is recognized for equity-settled transactions at each reporting date until the vesting date reflects the Company's best estimate of the number of equity instruments that will ultimately vest. No amount is recognized for equity instruments that do not ultimately vest. Cash received on the exercise of share options is recorded in share capital and the related compensation included in contributed surplus is transferred to share capital to recognize the total consideration for the shares issued. Mineral Exploration Tax Credit ("METC") The Company recognizes METC amounts as a reduction in mineral property expenditures on the statement of loss when the Company's METC application is approved by the relevant jurisdiction or when the amount to be received can be reasonably estimated and collection is reasonably assured. Flow-through shares The Company may from time to time issue flow-through common shares to finance its exploration program. Pursuant to the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company separates the flow-through common share into i) a flow-through common share premium, equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability and; ii) capital stock. When the resource property expenditures are incurred, the Company derecognizes the flow-through premium liability and recognizes the reduction in flow-through premium liability as other income. Income taxes The provision for income taxes consists of current and deferred tax expense and is recorded in operations. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the period, adjusted for amendments to tax payable for previous years. Deferred tax assets and liabilities are computed using the asset and liability method on temporary differences between the carrying amounts of assets and liabilities on the consolidated statement of financial position and their corresponding tax values, using the enacted or substantially enacted, income tax rates at each statement of financial position date. Deferred tax assets also result from unused losses and other deductions carried forward. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. (Expressed in Canadian dollars) Income (loss) per share The basic income or loss per share is computed by dividing the net income or loss by the weighted average number of common shares outstanding during the period. The diluted income or loss per share reflects the potential dilution from common share equivalents, such as the outstanding share purchase options and warrants, in the weighted average number of common shares outstanding during the year, if dilutive. Common share equivalents are excluded from the computation of diluted loss per share for the years presented as including them would be anti-dilutive. ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7). These amendments updated classification and measurement requirements in IFRS 9 Financial Instruments and related disclosure requirements in IFRS 7 Financial Instruments: Disclosures. The IASB clarified the recognition and derecognition date of certain financial assets and liabilities, and amended the requirements related to settling financial liabilities using an electronic payment system. It also clarified how to assess the contractual cash flow characteristics of financial assets in determining whether they meet the solely payments of principal and interest criterion, including financial assets that have environmental, social and corporate governance (ESG)-linked features and other similar contingent features. The IASB added disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs and amended disclosures relating to equity instruments designated at fair value through other comprehensive income. The amendments are effective for annual periods beginning on or after January 1, 2026, with early application permitted. Management is currently assessing the effect of these amendments on our financial statements. IFRS 18 - Presentation and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18, Presentation and Disclosure of Financial Statements (IFRS 18), which replaces IAS 1, Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income statement by requiring income and expenses to be presented into the three defined categories of operating, investing and financing, and by specifying certain defined totals and subtotals. Where company-specific measures related to the income statement are provided, IFRS 18 requires companies to disclose explanations around these measures, which are referred to as management-defined performance measures. IFRS 18 also provides additional guidance on principles of aggregation and disaggregation which apply to the primary financial statements and the notes. IFRS 18 will not affect the recognition and measurement of items in the financial statements, nor will it affect which items are classified in other comprehensive income and how these items are classified. The standard is effective for reporting periods beginning on or after January 1, 2027, including for interim financial statements. Retrospective application is required, and early application is permitted. Management is currently assessing the effect of this new standard on our financial statements. As of December 31, 2025, there are no other IFRS or IFRIC interpretations with future effective dates that are expected to have a material impact on the Company. (Expressed in Canadian dollars) CASH AND CASH EQUIVALENTS December 31, 2025 December 31, 2024 - - Cash held in bank accounts 3,744,853 1,166,401 Cash equivalents 28,759,500 8,310,000 DECEMBER 31, 2025 32,504,353 9,476,401 Cash equivalents were held in cashable guaranteed investment certificates with the interest rate of 2.45% and 2.55%. EQUIPMENT Cost Accumulated Depreciation Carrying Amount DECEMBER 31, 2024 182,156 (182,156) - Additions 307,655 (9,685) 297,970 DECEMBER 31, 2025 489,811 (191,842) 297,970 RIGHT-OF-USE ASSET The Company leases vehicles under a lease agreement which expires on May 15, 2028. The leased vehicles have been recorded as a Right-of-Use Asset and are amortized over the life of the lease (See Note 9). The Company entered into a new lease agreement for a site office located at Port Hardy. The lease has a non-cancellable term of two years commencing on October 1, 2025, with monthly rental payments of $16,000. Right-of-use Asset Cost Accumulated Depreciation Carrying Amount DECEMBER 31, 2024 195,742 (32,624) 163,118 Additions 350,262 (92,718) 257,543 DECEMBER 31, 2025 546,004 (125,342) 420,662 (Expressed in Canadian dollars) MINERAL PROPERTY INTERESTS Mineral property costs North Island Property $ December 31, 2023 and 2024 10,016,000 Changes during the period - DECEMBER 31, 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. Mineral Property Expenditures For the year ended December 31, 2025 2024 $ $ Amortization of equipment 102,404 43,302 Claims costs - 500 Community engagement 479,240 335,782 Engineering 1,586,621 730,458 Exploration and camp support 10,216,590 5,772,678 Environmental and permitting 412,417 162,779 Salary and wages 504,715 360,205 Mineral property exploration tax credit (204,863) (16,593) TOTAL 13,097,124 7,389,111 (Expressed in Canadian dollars) FLOW-THROUGH PREMIUM LIABILITY The flow-through premium liability balance as at December 31, 2025, of $2,476,497 (December 31, 2024 - $2,311,412) arose in connection with the flow-through share offering the Company completed on December 5, 2024 and August 8, 2025. 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 December 31, 2025, the Company had incurred all committed expenditures and no longer had a flow-through premium liability associated with this flow-through share financing. On August 8, 2025, the Company completed a flow-through financing and recorded a flow through liability of $3,328,997 and committed to incur, on or before December 31, 2026, qualifying Canadian exploration expenses as defined under the Income Tax Act, Canada ("2025 Qualifying CEE'') in the amount of $15,001,497. None of the Qualifying CEE will be available to the Company for future deduction from taxable income. As at December 31, 2025, the Company has remaining commitment to incur 2025 Qualifying CEE of $11,159,867. 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 December 31, 2024, 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 $3,163,912 during the year ended December 31, 2025 ($681,370 during the year ended December 31, 2024). 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. On October 1, 2025, the Company entered into a new lease agreement for a site office located at Port Hardy. The lease has a non-cancellable term of two years commencing on October 1, 2025, with monthly rental payments of $16,000 for the 24-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. (Expressed in Canadian dollars) DECEMBER 31, 2025 DECEMBER 31, 2024 Opening balance 170,603 195,742 Additions 350,262 Lease payments (107,422) (36,306) Interest expense 21,045 11,167 434,488 170,603 Less: current portion of lease liability (251,422) (59,422) Non-current portion of lease liability 183,066 111,181 The remaining minimum future lease payments, excluding estimated operating costs, for the term of the lease are as follows: YEAR DECEMBER 31, 2025 2026 251,422 2027 203,422 2028 19,807 Total minimum lease payments 474,651 Less imputed interest (40,163) Total lease obligation 434,488 Current portion of lease obligation (251,422) Non-current portion of lease liability 183,066 (Expressed in Canadian dollars) SHARE CAPITAL Authorized share capital The Company is authorized to issue an unlimited number of common shares without par value. Financing On August 8, 2025, the Company completed a non-brokered private placement, issuing 4,762,000 common shares at a price of $1.05 per common share for gross proceeds of $5,010,105. On August 8, 2025, the Company completed a brokered private placement, issuing 18,573,086 common shares at a price of $1.05 per common share and 9,338,000 flow-through shares at $1.61 per flow-through share for gross proceeds of $34,503,237. Issuance costs related to the private placement totaled $2,253,337. A flow-through premium liability of $3,328,997 was recognized (Note 8). 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 8). WARRANTS A summary of the Company's warrant activity is presented below: Number of warrants Weighted average exercise price $ DECEMBER 31, 2022 and 2023 5,048,000 0.28 Exercised (5,048,000) 0.28 DECEMBER 31, 2024 and 2025 - - (Expressed in Canadian dollars) EQUITY INCENTIVE PLANS 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% (less the number of outstanding RSUs and DSUs, defined below) 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 December 31, 2024, the Company could issue an additional 14,205,214 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 1,965,000 0.81 Exercised (2,525,533) 0.24 DECEMBER 31, 2025 9,236,900 0.40 In relation to the stock options, the Company recognized an expense of $883,394 during the year ended December 31, 2025 ($505,780 during the year ended December 31, 2024) in the statement of loss and comprehensive loss. (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 July 14, 2026 $0.26 165,000 0.53 165,000 December 16, 2026 $0.29 1,680,000 0.96 1,680,000 April 8, 2027 $0.40 200,000 1.27 200,000 November 21, 2027 $0.175 2,307,100 1.89 2,307,100 May 26, 2028 $0.18 403,500 2.40 403,500 December 21, 2028 $0.40 2,094,300 2.98 2,094,300 April 1, 2029 $0.50 150,000 3.25 150,000 July 18, 2029 $0.475 284,000 3.55 189,333 April 3, 2030 $0.69 1,541,000 4.26 513,667 September 1, 2030 $1.26 412,000 4.67 137,333 DECEMBER 31, 2025 9,236,900 2.54 7,840,233 During the year ended December 31, 2025, the Company granted 1,965,000 (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 Year Ended December 31, 2025 Year Ended December 31, 2024 Exercise price $0.98 $0.48 Market price $0.98 $0.48 Expected life of options (years) 5.0 5.0 Expected stock price volatility 93% 109% Average risk-free interest rate 2.52% 3.40% Expected forfeiture rate - - Expected dividend yield - - FAIR VALUE PER OPTION GRANTED $0.69 $0.37 (Expressed in Canadian dollars) 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's RSUs are classified as equity instruments. This classification reflects the Company's stated policy of settling RSUs in ordinary shares, and the absence of a present obligation to settle in cash. RSUs are measured at the market price of the Company's 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 (708,801) DECEMBER 31, 2025 1,161,968 In relation to RSUs, the Company recognized an expense of $345,150 during the year ended December 31, 2025 ($274,612 during the year ended December 31, 2024) in the statements of loss and comprehensive loss. RSUs converted to cash during 2024 were solely for the purpose of settling payroll taxes on conversion. (Expressed in Canadian dollars) Deferred Share Units Only non-executive 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's DSUs are classified as equity instruments. This classification reflects the Company's past practice and stated policy of settling RSUs in ordinary shares, and the absence of a present obligation to settle in cash. RSUs are measured at the market price of the Company's 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 1,344,200 DSUs Granted 52,000 DSUs Converted to common shares (357,800) DECEMBER 31, 2025 1,038,400 In relation to DSUs, the Company recognized an expense of $76,898 during the year ended December 31, 2025 ($162,234 during the year ended December 31, 2024) in the statements of loss and comprehensive loss. 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: For the year ended December 31, 2025 2024 $ $ Salaries and wages 1,173,158 977,302 Share-based payments 1,215,294 832,395 KEY MANAGEMENT COMPENSATION 2,388,452 1,809,697 Wages for certain officers of the Company are allocated to mineral property expenditures. As at December 31, 2025, and 2024, the Company had no outstanding balances of receivables or payables with its directors or key management personnel. (Expressed in Canadian dollars) SEGMENTED INFORMATION The Company's operations are in one segment: the acquisition, exploration and development of mineral resource properties. All interest income is earned in Canada and all assets are held in Canada. The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer, who is responsible for allocating resources and assessing the performance of the Company's operations. The CODM reviews financial information on a consolidated basis for the purpose of making operating decisions and evaluating financial performance. Accordingly, the Company has determined that it has a single reportable segment. INCOME TAXES Rate Reconciliation The income tax expense or recovery reported by the Company differs from the amounts obtained by applying statutory rates to the loss and comprehensive loss. A reconciliation of the income tax provision computed at statutory rates to the reported income tax provision is provided below: For the year ended December 31, 2025 2024 Statutory tax rate 27.00% 27.00% Loss before taxes 13,483,659 9,506,174 Income tax recovery calculated at statutory rate 3,640,588 2,566,667 Non-deductible/non-taxable expenditures 518,139 (62,997) Non-deductible mineral property expenditures (3,536,223) (1,995,060) Other taxable or deductible items 209,724 96,409 Effect of current period tax losses not recognized (832,228) (605,019) INCOME TAX - - Deferred income tax asset The significant components of the Company's net deferred income tax asset are as follows: As at December 31, 2025 2024 $ $ Non-capital losses carried forward 3,807,615 2,787,005 Unused income tax credits and other deductible amounts 828,459 429,016 Total Unrecognized Deferred Tax Assets 4,636,074 3,216,021 Deferred tax assets have not been recognized as it is uncertain that the Company will have future taxable income against which they could be utilized. As at December 31, 2025, the expiry dates of the Company's unrecognized income tax losses and income tax credits are: (Expressed in Canadian dollars) Amount Expiry Date Non-capital losses for income tax purposes 14,102,277 2034-2043 Non-refundable income tax credits 117,620 N/A 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. 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 financial instruments. Financial instruments consist of cash and equivalents, including guaranteed investment certificates, certain other assets, reclamation bonds and accounts payable and accrued liabilities. 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. At December 31, 2025, the Company had cash and cash equivalents of $32,504,353 (December 31, 2024 - $9,476,401). The Company's financial liabilities consist of accounts payable and accrued liabilities and lease liabilities. All accounts payable and accrued liabilities are due within one year. Lease liabilities are due as per contractual obligations under the respective lease agreements. The following table summarizes the maturity profile of the Company's financial liabilities: (Expressed in Canadian dollars) < 1 year 1-3 years >3years Total $ $ $ $ Accounts payable and accrued liabilities 2,390,538 - - 2,390,538 Lease liabilities 251,422 183,066 - 434,488 Total 2,641,960 183,066 - 2,825,026 The Company assessed its liquidity risk as low as at December 31, 2025 and 2024, as cash and cash equivalents are sufficient to meet obligations when they come due. 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 Northisle's maximum exposure to credit risk. Market risk The Company has assessed its exposure to market risk, including interest rate risk. Cash and cash equivalents consist of short-term guaranteed investment certificates bearing fixed interest rates. Accordingly, changes in market interest rates would not have a significant impact on the Company's cash flows. SUBSEQUENT EVENTS Subsequent to December 31, 2025, the Company closed a best efforts offering (the "Brokered Offering") and a non-brokered private placement (the "Non-Brokered Offering", and together with the Brokered Offering, the "Offerings"). The Brokered Offering consisted of (i) 35,016,700 common shares of the Company ("Common Shares") offered by way of a prospectus supplement at a price of $3.05 per Common Share (the "Issue Price") for gross proceeds of $106,800,935; and (ii) 1,050,000 Common Shares offered at the Issue Price on a private placement basis for gross proceeds of $3,202,500. The Non-Brokered Offering consisted of 1,639,300 Common Shares offered at the Issue Price on a private placement basis for gross proceeds of $4,999,865. The aggregate number of Common Shares issued pursuant to the Offerings was 37,706,000 for gross proceeds of $115,003,300. On April 7, 2026, the Company's Board of Directors has approved the issuance of 862,000 stock options pursuant to the Company's incentive stock option plan. The options provide for the purchase of an aggregate of 862,000 common shares of the Company at an exercise price of $3.03 per share, which is the closing price for the common shares on the TSX Venture Exchange as of April 6, 2026. All of the options have a 5-year term and vest one third per year commencing on April 7, 2026. In addition, the Board of Directors has approved the issuance of 304,000 restricted share units (the "RSUs''), pursuant to the Company's Share Unit Plan. The RSUs will vest one third per year commencing April 7, 2027. (Expressed in Canadian dollars) The Board of Directors has also approved the issuance of 7,000 deferred share units (the "DSUs''), pursuant to the Share Unit Plan. The DSUs will vest on April 7, 2027.

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