Pmet Resources Inc.TSX: PMET

Q3 2026: Interim MD&A (PMET Q3 2026 MDA SEDAR)

Feb 4, 2026 at 4:29 PM UTC · Issued by Pmet Resources Inc.

‌PMET RESOURCES INC. (FORMERLY PATRIOT BATTERY METALS INC.)

Management's Discussion and Analysis

For the three and nine-month periods ended December 31, 2025

TSX: PMET - ASX: PMT - OTCQX: PMETF

‌TABLE OF CONTENTS

OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
NATURE OF BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
HIGHLIGHTS FOR THE QUARTER ENDED DECEMBER 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
COMPANY'S OUTLOOK FOR THE FINANCIAL YEAR ENDING MARCH 31, 2026 . . .. . . . . . . . . . . . . 6
PROJECT UPDATE FOR THE QUARTER ENDED DECEMBER 31, 2025 .. . . . . . . . . . . . . . . . . . . . . . . 6
SUSTAINABILITY UPDATE FOR THE QUARTER ENDED DECEMBER 31, 2025 . . .. . . . . . . . . . . . . . . 8
MINERAL RESERVE STATEMENT (NI 43-101) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
MINERAL RESOURCE STATEMENT (NI 43-101) AND EXPLORATION TARGET . . . .. . . . . . . . . . . . . . 9
EXPLORATION UPDATE 11
EXPLORATION AND EVALUATION ASSETS 12
RESULTS OF OPERATIONS 14
FINANCIAL POSITION 17
CASH FLOW 18
SUMMARY OF QUARTERLY RESULTS 20
LIQUIDITY AND CAPITAL RESOURCES 21
OUTSTANDING SHARE DATA 22
RELATED PARTY TRANSACTIONS 22
SEGMENTED INFORMATION 22
CHANGES IN ACCOUNTING POLICIES AND CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES 22
AND ASSUMPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OFF-BALANCE SHEET ARRANGEMENTS 23
PROPOSED TRANSACTIONS 23
CAPITAL DISCLOSURE 23
FINANCIAL INSTRUMENTS 23
RISK AND UNCERTAINTIES 23
NATURE OF SECURITIES 24
INTERNAL CONTROL OVER FINANCIAL REPORTING 24
ADDITIONAL INFORMATION 25
QUALIFIED / COMPETENT PERSON 25
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 26
APPROVAL 28

‌OVERVIEW‌
This Management's Discussion and Analysis ("MD&A") of PMET Resources Inc. (formerly Patriot Battery Metals Inc.) and its subsidiaries (collectively, the "Company" or "PMET") has been prepared as of February 2, 2026, and, is intended to supplement the unaudited condensed interim consolidated financial statements of the Company for the three and nine-month periods ended December 31, 2025 (the "Financial Statements"), including the notes thereto, which have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") applicable to the preparation of interim financial statements, including International Accounting Standard 34 - Interim Financial Reporting. This MD&A should be read in conjunction with the Company's audited annual financial statements and MD&A for the financial year ended March 31, 2025. A copy of this MD&A is filed on SEDAR+ at www.sedarplus.ca and on the Australian Securities Exchange ("ASX") website at www.asx.com.au and is also available on the Company's website at www.pmet.ca.
Unless otherwise indicated, all references to "$" in this MD&A are to Canadian dollars. References to "US$" in this MD&A are to US dollars and references to "A$" in this MD&A are to Australian dollars.
The MD&A is prepared by management and was approved by the board of directors of the Company (the "Board of Directors" or the "Board") upon the recommendation of the Board's Audit & Risk Committee on February 2, 2026. Additional information relevant to the Company's activities can be found on SEDAR+ at www.sedarplus.ca, on the ASX website at www.asx.com.au and on the Company's website at www.pmet.ca.
For the purposes of preparing this MD&A, management, in conjunction with the Board, considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of the Company's common shares (the "Common Shares"); or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) it would significantly alter the existing information available to investors.
‌NATURE OF BUSINESS‌
The Company was incorporated on May 10, 2007, under the Business Corporations Act (British Columbia). The Company is domiciled in Canada and is a reporting issuer in all provinces of Canada. See the "Liquidity and Capital Resources" section of this MD&A.
The Company is a critical-mineral exploration and development company, focused on advancing its district-scale 100% owned Shaakichiuwaanaan Property in the Eeyou Istchee James Bay region of Québec, Canada, and proximal to regional road and powerline infrastructure. The Shaakichiuwaanaan Project is inclusive of Lithium-Caesium-Tantalum ("LCT") pegmatites of globally relevant scale.
On September 15, 2025, the Company changed its name from Patriot Battery Metals Inc. to PMET Resources Inc., with no change to its trading symbols. This change was made in conjunction with a rebranding initiative developed collaboratively with a diverse group of employees, supported by our external partners, ensuring alignment across our organization and key stakeholders, including its host communities.
The Common Shares are listed and posted for trading on the Toronto Stock Exchange ("TSX") under the symbol "PMET", on the ASX under the symbol "PMT" and are traded on the OTC Market in the United States under the symbol "PMETF" and on the Börse Frankfurt (Frankfurt Stock Exchange) in Germany under the symbol "R9GA".
The address of its head office is 1801, McGill College Avenue, Suite 900, Montréal, Québec H3A 1Z4 and the address of its registered and records office is 510 West Georgia Street, Suite 1800, Vancouver, British Columbia, V6B 0M3. The Company principally operates from its head office.
The Shaakichiuwaanaan Property hosts a Mineral Reserve of 84.3 Mt at 1.26% Li2O Probable at CV5, with an Effective Date of September 11, 2025, and cut-off grade of 0.40% Li2O open-pit and 0.70% Li2O underground. This Mineral Reserve is contained within the Consolidated Mineral Resource.
The current Consolidated MRE ("the July 2025 MRE") (CV5 + CV13 pegmatites), which includes the Rigel and Vega caesium zones, totals:
- 108.0 Mt at 1.40% Li2O, 0.11% Cs2O, 166 ppm Ta2O5, and 66 ppm Ga, Indicated, and 33.4 Mt at 1.33% Li2O, 0.21% Cs2O, 155 ppm Ta2O5, and 65 ppm Ga, Inferred, and is reported at a cut-off grade of 0.40% Li2O (open-pit), 0.60% Li2O (underground CV5), and 0.70% Li2O (underground CV13).
- A grade constraint of 0.50% Cs2O was used to model the Rigel and Vega caesium zones, entirely contained within the CV13 Pegmatite, with a MRE of 0.69 Mt at 4.40% Cs2O, 2.12% Li2O, and 646 ppm Ta2O5 (Indicated), and 1.70 Mt at 2.40% Cs2O, 1.81% Li2O, and 245 ppm Ta2O5 (Inferred).
- The Effective Date is June 20, 2025 (through drill hole CV24-787). Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability. Mineral Resources are inclusive of Mineral Reserves.
This Consolidated MRE, the fourth for the Shaakichiuwaanaan Project, continues to reaffirm it as the largest lithium pegmatite mineral resource in the Americas and one of the top 10 largest globally. Additionally, the Project hosts the largest in-situ pollucite-hosted caesium pegmatite MRE globally. Tantalum is also another key metal in the MRE, which hosts one of the world's largest tantalum resources. The Property also hosts multiple other LCT pegmatite clusters that remain to be drill tested, as well as significant areas of prospective trend that remain to be assessed.
The Company also holds several other non-core assets in Québec, Canada, and Idaho, USA, which are considered prospective for lithium, caesium, tantalum, copper, silver, and gold.
For further information regarding the Company and its material mineral projects, in addition to what is provided in this MD&A, please refer to the Company's current Annual Information Form ("AIF") available on SEDAR+ at www.sedarplus.ca, on the ASX website at www.asx.com.au, on the Company's website at www.pmet.ca. You should also consider reading the press release dated July 20, 2025, in which the Company announced the world's largest pollucite-hosted caesium pegmatite deposit at the Shaakichiuwaanaan Project.
For further information regarding the Company' CV5 Lithium-Only Feasibility Study ("FS") (and associated Mineral Reserve), in addition to what is provided in this MD&A, consider reading the press release dated October 20, 2025, in which the Company announced the delivery of a positive CV5 lithium-only Feasibility Study for its large-scale Shaakichiuwaanaan Project.
‌HIGHLIGHTS FOR THE QUARTER ENDED DECEMBER 31, 2025‌
1. Project Update
  - Completion of the FS, along with a maiden Mineral Reserve of 84.3 Mt at 1.26% Li2O Probable (2.62 Mt LCE) at CV5. At a long-term spodumene price of US$1,221/t (SC5.5 basis) the Project delivers an after-tax NPV8% of
    ~$1,594M (US$1,190M) and after-tax IRR of ~18.1%.
  - Production of marketable commercial grade pollucite concentrates (20.0% Cs2O and 11.5% Cs2O), at high collective recovery (88%), via bench scale X-Ray Transmission (XRT) ore sorting testwork on drill core from the Vega Caesium Zone.
  - Filing on November 14, 2025 of the NI 43-101 Technical Report for the FS on the CV5 Pegmatite.
  - Submission of the application to pursue an underground bulk sample advanced exploration program at CV5, targeting the high-grade Nova Zone, with the objective of further de-risking the project execution
2. Exploration
  - Completion in early November of the Company's 2025 drilling campaign at the Shaakichiuwaanaan Property with a total of 57,024 m (245 holes) completed in the calendar year and a total of 6,195 m (24 holes) completed in the quarter ended December 31, 2025.
  - Discovery of new lithium zones at CV4 and CV12, a new caesium discovery at CV12, and significant strike extensions at CV5 and CV13 now extending to 5.0 km and 3.2 km, respectively.
3. Corporate
  - Cash on hand of $51 million as of December 31, 2025.
  - Acquisition of a 100% interest in the Pikwa Property from Azimut Exploration, covering approximately 10 km of highly prospective greenstone belt trend extending immediately west of the Company's flagship Shaakichiuwaanaan Property in consideration for the issuance of 841,916 common shares at a price of $3.68 per common share.
  - The Company was added to the CI Morningstar National Bank Quebec Index on December 22, 2025.
4. Sustainability
  - Finalization of environmental baseline field studies and identification of key challenges, environmental management and mitigation measures initiated during the period.
5. Events after December 31, 2025
  - Discovery of a new high-grade, near surface lithium-tantalum zone ("Helios") at the CV13 Pegmatite combined with the receipt of the final lithium and tantalum results associated with the 2025 exploration campaign. These results include the highest-grade individual sample (7.71% Li2O), and the widest interval over 6% Li2O (7.0 m) ever reported from the Property, including the high-grade Nova Zone.
‌COMPANY'S OUTLOOK FOR THE FINANCIAL YEAR ENDING MARCH 31, 20261‌
With the completion and publication of the FS, the Company is advancing several key workstreams aimed at optimizing capital deployment, strengthening the Project's economic profile, and de-risking execution:
1. Finalization of the Environmental and Social Impact Assessment ("ESIA") for targeted submission by the end of the first quarter of the calendar year 2026, maintaining momentum toward securing necessary regulatory approvals.
2. Further refinement of Project phasing with a focus on phased development and optimizing capital outlays to enhance flexibility and capital efficiency.
3. Unlocking co-product potential through ongoing metallurgical and geological work, including advancement of a potential tantalum recovery circuit at CV5 and continued evaluation of the caesium opportunity at both CV13 and CV5.
4. Progress the bulk sample initiative, following submission of the application, targeting the underground ore body to improve geological understanding of the high-grade Nova Zone and validate product specification and quality at scale.
5. Deepen engagement with downstream industry partners, strengthening alignment across the battery materials supply chain and positioning the Company for future offtake and strategic collaboration opportunities.
6. Evaluate high-potential exploration targets to unlock additional resource upside and optimize the overall scale and scope of the Shaakichiuwaanaan Project.
The Company's outlook for the financial year ending March 31, 2026, constitutes forward-looking statements. For more information on forward-looking statements, see Section 29 of this MD&A.
‌PROJECT UPDATE2 FOR THE QUARTER ENDED DECEMBER 31, 2025‌
1. Completion of a FS
  On October 20, 2025, the Company announced the positive results of its CV5 lithium only FS, along with a maiden Mineral Reserve of 84.3 Mt at 1.26% Li2O Probable (2.62 Mt LCE) at CV5. At a long-term spodumene price of US$1,221/t (SC5.5 basis) the Project delivers an after-tax NPV8% of ~$1,594M (US$1,190M) and after-tax IRR of
  ~18.1%. The Company filed a technical report in accordance with NI 43-101 on the FS on November 14, 2025. The completion of the FS is a significant milestone as it is a requirement under the ESIA process in Québec, and therefore critical to maintain the Company's timeline to execution. For further information on next steps following the completion of the FS, see Section 4 of this MD&A.
  1 This section includes forward-looking statements. For more information on forward-looking statements, see Section 29 of this MD&A.
  2 Ibid
2. Site Infrastructure
  Given the absence of exploration activities towards the end of the quarter and to preserve capital, the exploration camp was put into hibernation effective November 2025 with a planned re-opening date of April 2026.
3. Permitting & Environment Planning
  Environmental and regulatory activities continued during the period as the Company focused on finalizing the Environmental and Social Impact Assessment ("ESIA") for submission before the end of the quarter ending March 31, 2026. Federal authorities proactively began their review of draft ESIA chapters and technical studies, supported by regular exchanges to clarify outstanding technical points prior to official submission.
  The Company also formally initiated the bulk sample authorization process through the submission of an application to the Comité d'examen des répercussions environnementales et sociales ("COMEV"), outlining a proposed underground bulk sample program at the CV5 deposit. The proposed bulk sample of up to 50,000 tonnes is intended to further de-risk Project execution, support design optimization, and contribute to technical and metallurgical validation activities. The Company anticipates receiving a response from COMEV in the coming months.
  Subject to receipt of such response, the Company intends to seek the required authorizations from the Ministère de l'Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs ("MELCCFP") and the Ministère des Ressources Naturelles et des Forêts ("MRNF") necessary to commence the bulk sample program toward the end of calendar year 2026..
4. Co-Product Opportunities
  Since the middle of 2025, the Company has advanced targeted mineral processing testwork on tantalum and caesium to evaluate whether portions of the Project's large Li-Cs-Ta mineral resource could support future by-/co-product recovery using conventional processing methods.
  At the CV5 Pegmatite, bench-scale testwork demonstrated that tantalite (Ta) can be recovered from dense media separation ("DMS") waste stream fractions using standard gravity and flotation techniques. Concentrate grades and recoveries achieved were consistent with those reported by comparable lithium pegmatite operations where tantalite is recovered as a by-product. The results indicate that a significant portion of the tantalum reports to material otherwise designated as waste and that its recovery would not adversely affect lithium recoveries. Based on these outcomes, the Company is advancing additional testwork to support the design of a standalone, bolt-on tantalum recovery circuit, to be evaluated as part of an updated feasibility study for the second half of calendar year 2026.
  During the quarter ended December 31, 2025, initial metallurgical testwork was completed that successfully demonstrated the selective upgrading of pollucite (Cs) from the Vega Caesium Zone at the CV13 Pegmatite using Xray transmission ("XRT") ore sorting. The testwork confirmed that XRT sorting could be implemented as a bolt-on circuit ahead of the spodumene (Li) DMS recovery circuit, without materially complicating the overall flowsheet.
  Following completion of the FS, the Company has commenced evaluating options to advance and potentially integrate the caesium opportunity at the Rigel and Vega zones as a future by-/co-product within the broader development of the Shaakichiuwaanaan Project. This work includes preliminary engagement with selected end-users and supply chain participants to better understand product specifications, qualification requirements, and downstream processing considerations relevant to caesium. These activities are intended to inform the scope and sequencing of future technical and economic studies.
‌SUSTAINABILITY UPDATE FOR THE QUARTER ENDED DECEMBER 31, 2025‌
The Company continued its engagement with the local communities. Throughout the quarter most of the communication activities where conducted with the Cree Nation of Chisasibi community members. The Company met with the newly elected Chisasibi Band Council and organized meetings with various regional and government stakeholders to present the key conclusions of the FS published in October. Discussions about the project have continued with land users and organizations in Chisasibi. In addition, the Company participated in public consultation sessions co-organized by the Impact Assessment Agency of Canada and the Cree Nation of Chisasibi.
Consistent with the Company's strategic objective to promote inclusive engagement with local communities, approximately 28% of the workforce employed at the Shaakichiuwaanaan Project during the last quarter comprised Indigenous individuals, predominantly members of the Cree Nation of Chisasibi.

‌MINERAL RESERVE STATEMENT (NI 43-101)‌

On October 20, 2025, the Company announced a maiden Mineral Reserve for its CV5 Lithium-only Shaakichiuwaanaan Project. The Mineral Reserve is outlined as part of the FS presented in a NI 43-101 Technical Report filed on SEDAR+ on November 14, 2025.The Mineral Reserve Statement is presented in the table below.

NI 43-101 Mineral Reserve Statement for the Shaakichiuwaanaan Project (CV5)

Area	Classification	Tonnes (t)	Grade (Li2O%)	Contained Li2O (Mt)	Contained Li (Mt)	Contained LCE (Mt)
Open Pit	Proven	-	-	-	-	-
Open Pit	Probable	49,200,000	1.12	0.55	0.26	1.36
Underground	Proven	-	-	-	-	-
Underground	Probable	35,100,000	1.45	0.51	0.24	1.26
Total	Proven	-	-	-	-	-
Total	Probable	84,300,000	1.26	1.06	0.49	2.62

The Mineral Reserves were estimated using the CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines (November 29 ,2019) and CIM Definition Standards for Mineral Resources and Reserves (May 10, 2014) and also comply with the JORC Code 2012.
The mine design and Mineral Reserve estimate have been completed to a level appropriate for feasibility studies. Mineral Reserves are based on the Indicated Mineral Resources only. The Inferred Mineral Resources contained within the mine design are not included and classified as waste.
Mineral Reserves are estimated using a long-term lithium price of USD 1,303/t of spodumene concentrate at 5.5% Li2O and an exchange rate CAN/USD of 1.32.
The Qualified Person for the estimate is Carl Michaud, P.Eng., MBA. The estimate has an Effective Date of September 11, 2025.
The Mineral Reserves for open pit are estimated using a cut-off grade of 0.40% Li2O. Open pit marginal material containing grade above 0.37% Li2O is also included within this statement. Mineral Reserves for underground stoping are estimated using a cut-off grade of 0.70%. Underground development tonnages containing material above 0.37% Li2O are also included in the statement.
The following mill recovery equation was used in the cut-off grade recovery:
Mill Recovery =
75 × (1 − e−1,995+Li2O feed Grade) 100
The open pit strip ratio is 3.40 and dilution factor is 2.0% based on the smallest mining unit (SMU). The open pit mine mining recovery is 97%.
The underground mine average external dilution factor is 12.7% including 3.9% for backfill dilution and 8.8% for ELOS dilution.
For the underground Mineral Reserves, a minimum mining width of 5 m was applied with a mining recovery of 90% for all stopes, while 100% extraction was assumed for all development mining.
A zone-by-zone approach was applied to validate the economic viability of each area of the deposit by integrating zone-specific sustaining capital costs into the economic analysis for the underground Reserve, whereby stope clusters that did not support development costs to access them, were not converted to Reserves. Underground stopes located within the crown pillar were not converted to Reserves.
It is the opinion of the Qualified/Competent Person that the Mineral Reserves estimate is supported by appropriate design, scheduling and costing work reported to a feasibility study level of detail. Sufficient modifying factors and economic considerations have been applied to the Indicated Mineral Resource to declare the Probable Mineral Reserve. As such, Mineral Reserves are reported commensurate with the Probable classification.
Contained lithium oxide (Li2O), lithium (Li), and lithium carbonate equivalent (LCE) are reported without accounting for metallurgical recovery.
Total may not sum due to rounding.

‌MINERAL RESOURCE STATEMENT (NI 43-101) AND EXPLORATION TARGET‌

The July 2025 MRE

On July 20, 2025, the Company announced the July 2025 MRE for the Shaakichiuwaanaan Project, which includes both the CV5 and CV13 pegmatites, as well as the Rigel and Vega caesium zones, and is presented in the table below.

The July 2025 MRE for the Shaakichiuwaanaan Project, the fourth MRE for the Project, continues to reaffirm it as the largest lithium pegmatite Mineral Resource in the Americas and one of the top 10 largest globally, as well as the largest known pollucite-hosted caesium pegmatite resource globally at its Rigel and Vega zones. These metrics and context entrench the Project as a Tier 1, world-class critical mineral pegmatite asset.

The July 2025 MRE covers a collective mineralized strike length of 6.9 km (4.6 km at CV5 and 2.3 km at CV13), and remains open at both ends along strike and to depth. Therefore, this Mineral Resource does not include any of the other known LCT pegmatite clusters on the Shaakichiuwaanaan Property - CV4, CV8, CV9, CV10, CV12, CV14, and CV15. Collectively, this highlights a considerable potential for resource growth through continued drill exploration. The July 2025 MRE is included in a NI 43-101 Technical Report was filed on SEDAR+ on November 14, 2025.

NI 43-101 Mineral Resource Statement for the Shaakichiuwaanaan Project

Pegmatite

Classification

Tonnes (t)

Li2O (%)

Cs2O (%)

Ta2O5(ppm)

Ga (ppm)

Contained

LCE (Mt)

CV5 & CV13

Indicated

107,991,000

1.40

0.11

166.00

66.00

3.75

Inferred

33,380,000

1.33

0.21

155.00

65.00

1.09

Caesium Zone	Classification	Tonnes (t)	Cs2O (%)	Li2O (%)	Ta2O5(ppm)	Contained Cs2O (t)
Rigel	Indicated	163,000	10.25	1.78	646	16,708
Rigel	Inferred	-	-	-	-	-
Vega	Indicated	530,000	2.61	2.23	172	13,833
Vega	Inferred	1,698,000	2.40	1.81	245	40,752
Rigel & Vega	Indicated	693,000	4.40	2.12	283	30,541
Rigel & Vega	Inferred	1,698,000	2.40	1.81	245	40,752

Mineral Resources were prepared in accordance with National Instrument 43-101 - Standards for Disclosure of Mineral Projects ("NI 43-101") and the CIM Definition Standards (2014). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, economic, or other relevant issues.
The independent Competent Person (CP), as defined under JORC, and Qualified Person (QP), as defined by NI 43-101 for this resource estimate is Todd McCracken, P.Geo., Director - Mining & Geology - Central Canada, BBA Engineering Ltd. The Effective Date of the estimate is June 20, 2025 (through drill hole CV24-787).
Estimation was completed using a combination of inverse distance squared (ID2) and ordinary kriging (OK) for CV5 and inverse distance squared (ID2) for CV13 in Leapfrog Edge software with dynamic anisotropy search ellipse on specific domains.
Drill hole composites at 1 m in length. Block size is 10 m x 5 m x 5 m with sub-blocking.
Both underground and open-pit conceptual mining shapes were applied as constraints to the Consolidated MRE Statement to demonstrate reasonable prospects for eventual economic extraction. Cut-off grades for open-pit constrained resources are 0.40% Li2O for both CV5 and CV13, and for underground constrained resources are 0.60% Li2O for CV5 and 0.70% Li2O for CV13. Open-pit and underground Mineral Resource constraints are based on a long-term average spodumene concentrate price of US$1,500/tonne (6% basis FOB Bécancour) and an exchange rate of 0.70 USD/CAD.
Mineral Resources for the Rigel and Vega zones are hosted within the CV13 Pegmatite's open-pit conceptual mining shape and, therefore, are included within the Consolidated Mineral Resource Statement for CV5 and CV13 pegmatites. The Rigel and Vega zones were interpreted using a 0.50% Cs2O grade constraint based on mineral processing analogues and mineralogical analysis supporting pollucite as the predominant Cs-bearing mineral present.
Rounding may result in apparent summation differences between tonnes, grade, and contained metal content.
Tonnage and grade measurements are in metric units.
Conversion factors used: Li2O = Li x 2.153; LCE (i.e., Li2CO3) = Li2O x 2.473, Ta2O5 = Ta x 1.221, Cs2O = Cs x 1.0602.
Densities for pegmatite blocks (both CV5 & CV13) were estimated using a linear regression function (SG = 0.0674x (Li2O% + 0.81 x B2O3%)
+ 2.6202) derived from the specific gravity ("SG") field measurements and Li2O grade. Non-pegmatite blocks were assigned a fixed SG based on the field measurement median value of their respective lithology.
The Mineral Resource is inclusive of the Mineral Reserve.

Exploration Target
In August 2024, the Company completed an Exploration Target (approximately 146 to 231 Mt at 1.0 to 1.5% Li2O) for the Shaakichiuwaanaan Project, which outlines the potential for a district-scale lithium resource. The Exploration Target is in addition to (i.e., does not include) the August 2024 MRE and only considers the CV Lithium Trend and immediately proximal areas at the Shaakichiuwaanaan Property. Subsequent MREs have focused on upgrading of Inferred Resources to Indicated Resources with insignificant change to total resources and, therefore, as of the July 2025 MRE, the scope of the Exploration Target determined is considered to remain relevant.
The potential quantity and grade of the Exploration Target are conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the Exploration Target being delineated as a Mineral Resource. The Exploration Target has been determined based on the interpretation of a consolidated dataset of surface rock sample descriptions and assays, outcrop mapping and descriptions, drill hole logs and core sample assays, geophysical surveys, and remote sensing data.
The Exploration Target was completed by BBA Engineering Ltd. ("BBA"), a consultant independent of the Company, and reported in accordance NI 43-101 and with Clause 17 of the JORC Code on August 5, 2024.
The Exploration Target has been presented as an approach to assess the potential endowment of the Project or the potential to host additional Mineral Resources of lithium pegmatite, subject to the success of future mineral exploration at the Property, and outside of that already defined.
The Company intends to test the validity of the Exploration Target over a several year period. The primary exploration method will involve systematic diamond drilling (NQ core size) targeting the known spodumene pegmatite clusters, as well as the corridors between, which together form the basis of the Exploration Target.

‌EXPLORATION UPDATE‌
For the quarter ended December 31, 2025, at Shaakichiuwaanaan, the Company completed a total of 6,195 m (24 holes). Through the first three quarters of the fiscal year ended December 31, 2025, a total of 43,271 m (188 holes) were completed. Over the 2025 calendar year, a total of 57,024 m (245 holes) were completed. The 2025 drill campaign was expansive in nature and included testing of multiple Li-Cs-Ta ("LCT") pegmatite prospects (CV4, CV8, CV12), step-out drilling at CV5 and CV13, infill drilling at CV13, as well as condemnation and geomechanical drilling in support of development at CV5 and CV13, respectively.
Drill results for 173 holes announced in the quarter ended December 31, 2025 include:
- Lithium zone discovery at the CV4 Pegmatite.
  - 27.0 m at 1.14% Li2O including 19.2 m at 1.45% Li2O (CV25-1013).
  - Discovery interpreted to be a potential 1.5 km extension of the CV5 Pegmatite to the east.
- Lithium zone discovery at the CV12 Pegmatite.
  - 29.0 m at 1.31% Li2O, including 12.5 m at 2.76% Li2O (CV25-875).
  - 29.4 m at 1.28% Li2O, including 11.9 m at 2.86% Li2O (CV25-894).
- Caesium zone discovery near-surface at the CV12 Pegmatite.
  - 3.0 m at 5.82% Cs2O within a wider anomalous zone of 23.0 m at 0.98% Cs2O (CV25-875).
- Extensions of the CV5 and CV13 pegmatites.
  - 24.9 m at 1.34% Li2O, including 11.2 m at 2.16% Li2O (CV25-879) - CV5
  - 11.7 m at 1.16% Li2O, including 5.4 m at 1.98% Li2O (CV25-796) - CV13
The geology team is currently interpreting and working with the new drill hole data to advance the host rock and pegmatite geological models for the Project. The work is focused on the CV5 and CV13 pegmatites ahead of updates that will feed into updated block models, culminating into an optimized economic study scheduled for the second half of calendar year 2026.

‌EXPLORATION AND EVALUATION ASSETS‌

The Company's exploration and evaluation assets ("E&E assets") for the nine-month period ended December 31, 2025 are as follows:

	Shaakichiuwaanaan Property Quebec, Canada	Quebec Properties Quebec, Canada	US Property Idaho, USA	Total
Acquisition Costs	$	$	$	$
Balance, March 31, 2025	7,750,000	3,780,000	898,000	12,428,000
Additions	11,000	3,098,000	-	3,109,000
Balance, December 31, 2025	7,761,000	6,878,000	898,000	15,537,000
Exploration and Evaluation Costs
Balance, March 31, 2025	172,672,000	758,000	1,007,000	174,437,000
Additions
Transportation and accommodation	11,798,000	47,000	-	11,845,000
Studies	10,562,000	-	-	10,562,000
Depreciation	8,356,000	-	-	8,356,000
Drilling expenditures	7,924,000	-	-	7,924,000
Geology services and expenditures	4,848,000	114,000	30,000	4,992,000
Other geological projects and other	4,369,000	4,000	-	4,373,000
Assays and testing	740,000	15,000	-	755,000
Total additions	48,597,000	180,000	30,000	48,807,000
Exploration tax credits	(1,790,000)	-	-	(1,790,000)
Balance, December 31, 2025	219,479,000	938,000	1,037,000	221,454,000
Total, March 31, 2025	180,422,000	4,538,000	1,905,000	186,865,000
Total, December 31, 2025	227,240,000	7,816,000	1,935,000	236,991,000

Quebec Properties consist of all Quebec properties other than the Shaakichiuwaanaan Property (namely the Pikwa, Pontois, Pontax, Lac du Beryl and Eastmain Properties).

Acquisition Costs
On November 28, 2025, the Company increased its land position immediately west of the Shaakichiuwaanaan Property through the acquisition of a 100% ownership interest in the Pikwa Property, located in the James Bay region. The Company issued 841,916 common shares in the capital of the Company at a price of $3.68 per common share for a total acquisition cost of $3,098,000. The claim block is subject to a 2% Net Smelter Royalty. Apart from these acquisition costs, the Company did not incur material expenditures on its other properties as the Company concentrated its exploration efforts on its flagship asset, the Shaakichiuwaanaan Property. All other properties' claims are in good standing.
Exploration and Evaluation Costs
During the nine-month period ended December 31, 2025, the Company capitalized $48,597,000 towards E&E assets for its Shaakichiuwaanaan Property. The more significant additions during the period were as follows:
- Transportation and accommodation expenditures totaled $11,798,000 for the period. These costs reflect the operational costs incurred in running the Company's exploration camp during the period. They include lodging, meals, utilities, and services to support personnel on-site and to maintain exploration activities. The transportation expenses comprised of $3,201,000 in connection with helicopter services required for accessing key exploration sites, including CV12 and CV13 which are not serviced by the exploration all-season road and of $739,000 for chartered flights to transport employees and contractors to and from the Project site. As the site was in hibernation during November and December, on-site activities were limited, resulting in a significant reduction in transportation and accommodation costs in the three-month period ended December 31, 2025.
- The $10,562,000 addition in study costs is essentially composed of environmental and engineering study costs totalling $5,032,000 and $5,530,000, respectively. Environmental costs relate to the cost of the ongoing progression of the ESIA (whose costs are primarily driven by permitting and environmental work efforts performed throughout the nine-month period). The FS has now been finalized, and the related costs reflect the final engineering and technical efforts required for completion.
- Drilling and geology expenditures amounted to $7,924,000 and $4,848,000, respectively. During the nine-month period, the Company completed approximately 43,000 m at Shaakichiuwaanaan compared to 76,000 m during the same period the prior year.
- Depreciation totaled $8,356,000 for the period and is related to the depreciation of the exploration camp and the temporary all-season exploration road. Depreciation is capitalized in E&E assets as the Shaakichiuwaanaan Project is not in operation.
- The Company recognized $1,790,000 in exploration tax credits attributed to qualifying exploration expenses incurred during the nine-month period ended December 31, 2025 and not renounced to flow-through investors.
  Capitalized E&E costs are expected to decline over the remaining quarter of the fiscal year ending 2026, as the FS was finalized mid-November and the current drilling campaign has concluded. As at December 31, 2025, the Company has fully used the $75,000,000 proceeds from the flow-through share private placement completed in May 2024.

‌RESULTS OF OPERATIONS‌

The following table presents consolidated statements of loss and comprehensive loss for the three and nine-month periods ended December 31, 2025, and 2024:

	Three-month periods ended		Nine-month periods ended
	December 31, 2025 $	December 31, 2024 $	December 31, 2025 $	December 31, 2024 $
General and Administrative Expenses Share-based compensation Salaries, benefits and management fees Professional and consulting fees Business support expenses Investor relations and business development Travel Transfer agent and filing fees	1,726,000 1,345,000 1,014,000 424,000 263,000 222,000 90,000	2,240,000 1,628,000 457,000 608,000 359,000 333,000 107,000	4,666,000 3,937,000 3,056,000 1,447,000 869,000 628,000 298,000	6,205,000 4,203,000 1,976,000 2,037,000 778,000 1,258,000 348,000
Total general and administrative expenses	(5,084,000)	(5,732,000)	(14,901,000)	(16,805,000)
Other Income Flow-through premium income Change in fair value of listed shares Interest income Other finance expenses Gain on disposal of E&E assets	1,046,000 328,000 434,000 (224,000) -	5,148,000 -595,000 - 152,000	10,748,000 1,874,000 1,664,000 (686,000) -	17,769,000 -2,635,000 - 152,000
(Loss) Income before income taxes	(3,500,000)	163,000	(1,301,000)	3,751,000
Income taxes Deferred income tax recovery (expense)	712,000	(2,393,000)	(3,869,000)	(9,350,000)
Loss for the period	(2,788,000)	(2,230,000)	(5,170,000)	(5,599,000)
Other comprehensive income Foreign currency translation adjustment	(13,000)	10,000	(24,000)	10,000
Comprehensive loss for the period	(2,801,000)	(2,220,000)	(5,194,000)	(5,589,000)
Loss per share Basic and diluted	(0.02)	(0.02)	(0.03)	(0.04)

Net Loss
Net loss was $2,788,000 for the three-month period ended December 31, 2025 compared to $2,230,000 for the same period in the prior year. Net loss was $5,170,000 for the nine-month period ended December 31, 2025 compared to $5,599,000 for the same period in the prior year. The more significant variances between the periods are as follows:
General and Administrative Expenses
General and administrative expenses totaled $5,084,000 for the three-month period ended December 31, 2025, compared to $5,732,000 for the same period in the prior year. For the nine-month period, these expenditures decreased from $16,805,000 to $14,901,000. The decrease in general and administrative expenses is primarily attributable to a reduction in share-based compensation expense in the current year along with cost rationalization initiatives undertaken to align the Company's expense profile with its development priorities.
For the three-month period ended December 31, 2025, share-based compensation totaled $1,726,000 down from
$2,240,000 for the same period in the prior year. For the nine-month period, this non-cash expense went down from $6,205,000 to $4,666,000. The decrease in share-based compensation primarily reflects lower stock option expense driven by the timing of grants and vesting schedules. Share-based compensation expense in the prior year period was higher due to stock option grants issued in January 2024 in connection with Board and executive changes following Mr. Brinsden's appointment as Managing Director and Chief Executive Officer. This decrease was partially offset by the grant of a special non-recurring retention package to employees of the Company in a form of stock options, RSUs and PSUs.
Salaries, benefits, and management fees totalled $1,345,000 for the three-month period ended December 31, 2025, compared to $1,628,000 for the same period in the prior year. On a nine-month basis, the expense amounted $3,937,000 compared to $4,203,000 for the same period in the prior year. This reduction is partly due to the fact that certain key personnel are now fully dedicated to capitalizable initiatives resulting in the recognition of associated costs to capital expenditures.
Professional fees and consulting fees totalled $1,014,000 for the three-month period ended December 31, 2025, compared to $457,000 for the same period in the prior year. For the nine-month period, these expenditures increased from $1,976,000 to $3,056,000. The increase primarily reflects strategic advisory and external support costs incurred in connection with the Company's ongoing corporate development initiatives, including efforts to identify and engage with potential strategic partners within the battery and critical mineral supply chains, and to support the Company's progression into the project development phase. The increase also reflects compliance-related professional services inherent to operating as a publicly listed company, largely driven by regulatory disclosure requirements in Canada and Australia, including technical reporting obligations.
In addition, the increase reflects costs related to the recruitment and onboarding of key executives, whose expertise is essential to supporting the Company's business development and strategic growth initiatives.
Travel expenditures decreased significantly compared to the prior periods, primarily due to a reduced number of site visits and fewer trips required for external events. In addition, the hibernation of the camp led to fewer on-site visits by corporate personnel, further reducing travel needs.
Other Income
Upon completing a flow-through financing, the Company recognizes a flow-through financing premium liability for the difference between the price of the flow-through Common Shares and the fair value of the Common Shares at the time of the equity issuance. This liability is reduced by the share issuance costs allocated to the flow-through component of the private placement. The flow-through premium liability is subsequently amortized over the periods in which the funds are spent on qualifying Canadian Eligible Exploration Expenditures ("CEE") resulting in the recognition of non-cash flow-through premium income.
The flow-through premium income totaled $1,046,000 for the three-month period ended December 31, 2025, compared to $5,148,000 for the same period in the prior year. For the nine-month period ended December 31, 2025, this income totaled $10,748,000 compared to $17,769,000 for the prior year. The decrease is due to the complete utilization of the flow-through proceeds in the beginning of the three-month period ended December 31, 2025. The remaining flow-through premium liability has therefore been fully amortized, resulting in a lower income in the quarter compared to the previous one.
The gain from listed shares reflects the change in fair value of equity securities held by the Company during the reporting period. Additional details regarding these holdings is provided in Section 12 of this MD&A.
Interest income amounted to $434,000 and $1,664,000 for the three and nine-month periods ended December 31, 2025 ($595,000 and $2,635,000 respectively, for the comparative periods). This income results from interest earned on cash balances in the Company's operating bank accounts. The decrease in interest income compared to the prior period is mostly attributable to the current macroeconomic environment, where the Bank of Canada has lowered its benchmark interest rate, influencing commercial banks to adjust their rates accordingly.
Other finance expenses primarily consist of interest charges accrued on unspent flow-through funds, in accordance with applicable tax legislation, as well as fluctuations arising from foreign exchange movements.
Income Taxes
The Company capitalizes Canadian Exploration Expenses ("CEE") in its Financial Statements; however, for tax purposes, CEE are renounced in favour of flow-through investors who participated in prior equity financings. As a result, the Company will not be able to use the associated tax deductions to offset future taxable income. Consequently, a deferred tax liability is recognized, along with a corresponding non-cash deferred income tax expense
The deferred income tax recovery for the three-month period ended December 31, 2025 amounted to $712,000 (compared to a deferred income tax expense of $2,393,000 for the three-month period ended December 31, 2024) and is non-cash in nature. The income tax recovery recognized during the quarter primarily reflects the income tax loss incurred in the period, offset by the full utilization of flow-through funds at the beginning of the quarter reducing the amount of CEE renounced during the period.
For the nine-month period ended December 31, 2025, the deferred income tax expense totalled $3,869,000 ($9,350,000 for the same period in the prior year). Deferred income tax expenses are primarily attributable to CEE renounced to flow-through investors.

‌FINANCIAL POSITION‌

	December 31, 2025 $	March 31, 2025 $	Variation %
ASSETS
Current assets	58,108,000	110,187,000	(47)%
Exploration and evaluation assets	236,991,000	186,865,000	27 %
Property and equipment	60,568,000	68,728,000	(12)%
Deposits	346,000	346,000	- %
Listed shares	2,377,000	503,000	373 %
Total assets	358,390,000	366,629,000	(2)%
LIABILITIES
Current liabilities	7,295,000	24,251,000	(70)%
Asset retirement obligation	4,263,000	4,180,000	2 %
Lease liabilities	161,000	241,000	(33)%
Deferred income taxes	25,713,000	21,870,000	18 %
Total liabilities	37,432,000	50,542,000	(26)%
EQUITY
Share capital	325,894,000	319,981,000	2 %
Reserves	26,827,000	22,675,000	18 %
Accumulated other comprehensive income	(17,000)	7,000	(343)%
Deficit	(31,746,000)	(26,576,000)	19 %
Total equity	320,958,000	316,087,000	2 %
Total liabilities and equity	358,390,000	366,629,000	(2)%

Assets
The decrease in current assets reflects the reallocation of existing funds towards long-term investments in Exploration and Evaluation assets.
During the nine-month period ended December 31, 2025, E&E assets increased due to extensive drilling campaigns as further documented in section 9 of this MD&A. In addition to drilling, E&E costs also encompassed geology, studies, transportation, and accommodation costs which were essential to the delivery of the FS in October 2025 and the targeted submission of the ESIA in support of project permitting by the end of the first quarter of the calendar year 2026.
Investments in property and equipment during the nine-month period ended December 31, 2025 were minimal as the Company completed the construction of its exploration camp in the last financial year. The decrease compared to the prior year is primarily related to the depreciation expense amounting to $8,512,000 for the period.
The Company's long-term asset holdings include shares in Loyal Metals Ltd., acquired from the sale of its Northwest Territories claims in fiscal year 2025. The 373% increase reflects a revaluation of these shares due to a change in their fair value.
Liabilities
The decrease in current liabilities is due in part of to the completion in the current quarter of the exploration programs, and the complete utilization of flow-through funds, resulting in a nil flow-through premium liability as at December 31, 2025.
The asset retirement obligation remained largely unchanged during the period, as there were no significant modifications or additions to site infrastructure that would materially impact future restoration costs.
Long-term liabilities include a deferred income tax liability of $25,713,000 ($21,870,000 as at March 31, 2025) primarily relating to the permanent difference associated with the capitalization of CEE renounced in favour of flow-through investors.
Equity
In connection with the Pikwa transaction (as further described in section 10 of this MD&A), the Company issued 841,916 common shares in the capital of the Company at a price of $3.68 per common share for a total acquisition cost of $3,098,000. Other than this issuance, the Company's equity remained relatively stable during the quarter, as no significant financing activities were completed.

‌CASH FLOW‌

As the Company is in the exploration phase, it does not receive or anticipate any cash revenue in the 2026 financial year. The Company's mineral interests do not currently generate cash flow from operations.

The following table summarizes cash flow activities:

	Three-month periods ended		Nine-month periods ended
	December 31, 2025 $	December 31, 2024 $	December 31, 2025 $	December 31, 2024 $
Cash used in operating activities before working capital	(3,162,000)	(2,856,000)	(9,220,000)	(7,878,000)
Changes in non-cash working capital items	3,402,000	2,420,000	2,424,000	(274,000)
Cash provided by (used in) operating activities	240,000	(436,000)	(6,796,000)	(8,152,000)
Cash used in investing activities	(11,760,000)	(25,483,000)	(44,579,000)	(92,815,000)
Cash provided by (used in) financing activities	1,616,000	(852,000)	1,584,000	71,652,000
Decrease in cash and cash equivalents	(9,904,000)	(26,771,000)	(49,791,000)	(29,315,000)
Effect of exchange rate on cash	(38,000)	10,000	(120,000)	10,000
Cash and cash equivalents, beginning of period	61,204,000	70,460,000	101,173,000	73,004,000
Cash and cash equivalents, end of period	51,262,000	43,699,000	51,262,000	43,699,000

Operating
For the three-month period ended December 31, 2025, cash provided by operating activities totaled $240,000 compared to cash used in operating activities amounting $436,000 for the prior period. For the nine-month period ended December 31, 2025, cash used in operating activities totaled $6,796,000 compared to $8,152,000 for the prior period.
The three-month period decrease in cash used in operating activities is mainly driven by favorable movements in non-cash working capital, reflecting the timing of payments on payables and the receipt of Québec exploration tax credits within receivables. The nine-month decrease in cash used in operating activities is also due to favorable movements in non-cash working capital, offset by lower interest income resulting from reduced cash balances and lower prevailing interest rates as well as interest expenses on unspent flow-through funds.
Investing
For the three-month period ended December 31, 2025, the Company's investments totaled $11,760,000 compared to $25,483,000 for the same period of the prior year. For the nine-month period ended December 31, 2025, the Company's investments totaled $44,579,000 compared to $92,815,000 for the same period of the prior year. The Company's investments for the current year are substantially comprised of exploration costs capitalized in E&E assets. However, about one third of the cash used in investing activities in the comparative period was related to acquisition of property and equipment (such as the exploration camp and temporary all-season exploration road). Such investments are not recurring in nature, thus explaining most of the decrease in the current period, as well as the completion of the drilling program and the completion of the FS offset by higher study costs incurred in relation to the ESIA.
Financing

For the three-month period ended December 31, 2025, cash provided by financing activities amounted to

$1,616,000 compared with cash used in financing activities amounting to $852,000 for the same period prior year. For the nine-month period ended December 31, 2025, cash provided in financing activities totaled $1,584,000 compared to cash provided by financing activities of $71,652,000 for the same period prior year. The variation is mainly due to the timing of the financing activities. During the current fiscal year, the Company raised the majority of its funds through the exercise of stock options, while a smaller amount was raised from the issuance of common shares to Volkswagen pursuant to the Investor Rights Agreement. In contrast, during the first quarter of prior year, the Company completed a flow-through share private placement for aggregate gross proceeds of approximately

$75M.

The table below, as at December 31, 2025, outlines how the Company has utilized these proceeds, any deviations from the anticipated use of funds, and the allocation of proceeds from previous financings during the quarter ended December 31, 2025.

Financings	Anticipated Use of Proceeds Allocated	Allocated Proceeds ($)	Actual Use of Proceeds (as at Sept. 30, 2025) ($)	Variation from Anticipated Use of Proceeds	Explanation and Impact
Private placement of Volkswagen for proceeds of approximately $68,900,000 (January 21, 2025)	Shaakichiuwaanaan development program General corporate purposes	$68,900,000	$17,642,000	The Company has not yet spent all of the proceeds of the financing.	N/A
Private placement of flow-through Common Shares for proceeds of approximately $75,000,000 (May 30, 2024)	Qualifying critical mineral mining expenditures	$75,000,000	$75,000,000	The Company has spent all of the proceeds of the financing.	N/A
Private placement to Albemarle for proceeds of approximately $109,000,000 (August 3, 2023)	Shaakichiuwaanaan development program General corporate purposes	$87,200,000 $21,800,000	$87,200,000 $21,800,000	The Company has spent all of the proceeds of the financing.	N/A

The Company may also receive proceeds from the exercise of stock options. Such proceeds are used to advance the Shaakichiuwaanaan project as well as for general corporate purposes.

‌SUMMARY OF QUARTERLY RESULTS‌

The following is a summary of the Company's financial results for the eight (8) most recent quarters, derived from the financial statements and prepared in accordance with IFRS Accounting Standards:

Dec 31 2025	Sep 30 2025	Jun 30 2025	Mar 31 2025	Dec 31 2024	Sep 30 2024	Jun 30 2024	Mar 31 2024
(2,788,000)	(706,000)	(1,676,000)	(698,000)	(2,230,000)	(208,000)	(3,161,000)	716,000
(0.02)	(0.00)	(0.01)	(0.00)	(0.02)	(0.00)	(0.02)	0.01
50,813,000	58,351,000	72,312,000	85,936,000	30,186,000	42,222,000	61,976,000	53,103,000
236,991,000	223,424,000	204,295,000	186,865,000	169,144,000	155,160,000	128,627,000	111,927,000
60,568,000	63,373,000	66,150,000	68,728,000	68,711,000	69,101,000	67,056,000	52,327,000
163,782,795	162,270,235	162,270,235	162,250,235	141,588,965	141,508,965	141,146,586	135,646,627

Three-month periods ended and as at

Operating Results

Net Income (Loss)

Basic & Diluted Earnings (Loss) per share

Financial Position Working Capital1 E&E assets

Property and Equipment Shares issued and outstanding

1 Working capital is a non-IFRS measure and is calculated as current assets less current liabilities.

Variations over the last eight (8) quarters are primarily due to the following factors:

Increase in corporate activities and personnel costs to support the Company's growth.
Timing and vesting of stock options grants and under the previous Omnibus Plan.
Timing of flow-through financings, the period the funds are spent on qualifying expenditures and the deferred income tax liability arising from the financing.
Investments in exploration evaluation assets and property and equipment to advance of the Shaakichiuwaanaan Project.

‌LIQUIDITY AND CAPITAL RESOURCES‌

As at December 31, 2025, the Company had a cash and cash equivalent balance of $51,262,000 ($101,173,000 as of March 31, 2025) and a working capital1 of $50,813,000, ($96,684,000 as of March 31, 2025) excluding the FT premium liability. As at December 31, 2025, the FT premium liability has been fully settled and stood at $0 (10,748,000 as at March 31, 2025).

During the three and nine-month periods ended December 31, 2025, the Company received funds through the exercise of stock options ($1,290,000) as well as proceeds from issuance of common shares to Volkswagen ($359,000). For the same period in the prior year, the Company's main source of funds has been through equity issuances with proceeds amounting of $75,000,000 from the 2024 FT Financing.

Currently, the Company's operations do not generate cash in-flows, and its financial success depends on management's ability to discover, finance and bring to the production stage an economically viable mineral deposit. The mineral exploration process can take many years and is subject to factors beyond the Company's control. To finance the Company's exploration programs, detailed engineering, environmental, social and impact assessment and to cover administrative and overhead expenses, the Company currently raises funds through equity issuances.

Many factors influence the Company's ability to raise funds, including the health of the resource market, the climate for mineral exploration investment, the Company's track record, and the experience and caliber of its management. Actual funding requirements may vary from those planned due to several factors, including the progress of exploration and development activities.

Management believes it will be able to raise capital as required in the long term but recognizes risks may be beyond its control. If the Company cannot raise sufficient financing, it may need to scale back its intended operational programs and other expenses. Other than as discussed herein, the Company is unaware of any trends, demands, commitments, events or uncertainties that may result in its liquidity materially increasing or decreasing at present or in the foreseeable future, other than general market conditions, which are uncertain for exploration companies. Material increases or decreases in the Company's liquidity will be substantially determined by the success or failure of its exploration and development programs and its continued ability to raise capital.

The Company believes it has sufficient working capital to meet its planned activities for the next 12 months. As previously stated, the ability of the Company to raise capital will depend on market conditions, and it may not be possible for the Company to issue Common Shares or other securities on acceptable terms or at all. For more information on the financial risks facing the Company and their potential impact, please refer to the "Risks and Uncertainties" section of this MD&A.

1 Working capital is a non-IFRS measure and is calculated as current assets less current liabilities.

‌16. OUTSTANDING SHARE DATA‌

As at	December 31, 2025	February 1, 2026
Issued and outstanding Common Shares	163,782,795	163,784,910	(1)
Stock options outstanding	8,838,016	8,088,016	(2)
Performance share units	1,465,002	1,465,002
Restricted share units	1,465,002	1,465,002
Deferred share units	324,486	327,966	(3)
Note: Subsequent to December 31, 2025:

The Company issued 2,115 common shares in settlement of some of the CEO's salary, net of withholding taxes, at a price of $5.82 per common share.
750,000 stock options expired.
The Company granted an aggregate of 3,480 deferred share units to one of its directors.

‌RELATED PARTY TRANSACTIONS‌
The Company's related parties include its subsidiaries and key management personnel. Key management personnel are considered to be those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly. Key management includes executives and directors of the Company. Transactions with key management personnel are disclosed in note 14 of the of the Company's audited consolidated financial statements for the year-ended March 31, 2025, and 2024, which are available on SEDAR+ at www.sedarplus.ca and on the ASX website at www.asx.com.au.
In connection with related party transactions, no significant changes occurred in the three and nine-month periods ended December 31, 2025.
‌SEGMENTED INFORMATION‌
The Company operates in one business segment, the exploration and development of mineral properties. The Company's E&E assets are all located in Quebec, Canada, except for $1,935,000 located in the United States (March 31, 2025 - $1,905,000).
All of the Company's Property and Equipment is located in Canada.
‌CHANGES IN ACCOUNTING POLICIES AND CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS‌
Estimates and assumptions are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The determination of estimates requires the exercise of judgment based on various assumptions and other factors such as historical experience and current and expected economic conditions. Actual results could differ from those estimates.
Critical accounting estimates and assumptions as well as critical judgments in applying the Company's accounting policies are detailed in Note 5 of the Company's audited consolidated financial statements for the years ended March 31, 2025 and 2024, which are available on SEDAR+ at https://www.sedarplus.ca and on the ASX website at https://www.asx.com.au.
Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Company in the current or future reporting periods. There were no significant changes in the Company's accounting policies during the three and nine-month periods ended December 31, 2025.
‌OFF-BALANCE SHEET ARRANGEMENTS‌
The Company has not entered into any material off-balance sheet arrangements.
‌PROPOSED TRANSACTIONS‌
The Company has no proposed transactions.
‌CAPITAL DISCLOSURE‌
The Company considers its capital structure to include net residual equity of all assets, less liabilities. The Company's objectives when managing capital are to: (i) maintain financial flexibility in order to preserve its ability to meet financial obligations and continue as a going concern; (ii) maintain a capital structure that allows the Company to finance its growth using internally-generated cash flow and debt capacity; and (iii) optimize the use of its capital to provide an appropriate investment return to its shareholders commensurate with risk.
The Company's financial strategy is formulated and adapted according to market conditions in order to maintain a flexible capital structure that is consistent with its objectives and the risk characteristics of its underlying assets. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of its underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, acquire or dispose of assets, or adjust, the amount of cash and cash equivalents and receivables.
‌FINANCIAL INSTRUMENTS‌
The nature and extent of risks arising from the Company's financial instruments are summarized in Note 13 of the Company's audited consolidated financial statements for the year ended March 31, 2025 and 2024, which are available on the Company's website at www.pmet.ca, on SEDAR+ at www.sedarplus.ca and on the ASX website at www.asx.com.au.
‌RISK AND UNCERTAINTIES‌
As an exploration company, the Company faces the financial and operational risks inherent to its business that may have a material adverse effect on its financial condition, results of operations or the trading price of the Company's shares. The reader should carefully consider these risks as well as the information disclosed herein.
For a comprehensive discussion and description of the risk factors related to the Company and its activities, please refer to the section entitled "Risk Factors" of the Company's current and most updated AIF dated June 10, 2025, available on SEDAR+ at https://www.sedarplus.ca and on the ASX website at https://www.asx.com.au. This section is incorporated by reference into this MD&A. Please note that the Company's view of risks is not static, and readers are cautioned that there can be no assurance that all risks to the Company, at any point in time, can be accurately identified, assessed as to significance or impact, managed or effective controlled or mitigated. There can be additional new or elevated risks to the Company that are not described therein.
‌NATURE OF SECURITIES‌
The purchase of the Company's securities involves a high degree of risk and should be undertaken only by investors whose financial resources are sufficient to enable them to assume such risks. The Company's securities should not be purchased by persons who cannot afford the possibility of the loss of their entire investment. Furthermore, shareholders are encouraged to seek the advice of an appropriately qualified financial adviser before making any investment decisions regarding the Company's securities.
‌INTERNAL CONTROL OVER FINANCIAL REPORTING‌ Disclosure Controls and Procedures
Disclosure controls and procedures ("DC&P") are designed to provide reasonable assurance that information required to be disclosed by the Company in its annual filings or, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in the securities legislation and include controls and procedures designed to ensure that information required to be disclosed by the Company in its annual filings, interim filings or other reports filed or submitted under securities legislation is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. The Chief Executive Officer and Chief Financial Officer of the Company have evaluated, or caused to be evaluated under their supervision, the design and operating effectiveness of the Company's DC&P (as defined in National Instrument 52-109 Certification of Disclosure in Issuer's Annual and Interim Filings) as at December 31, 2025 and have concluded that such DC&P were designed and operating effectively.
Internal Controls Over Financial Reporting
Internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with IFRS Accounting Standards. Management is also responsible for the design of the Company's internal control over financial reporting in order to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS Accounting Standards.
The Company's internal controls over financial reporting include policies and procedures that: pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with IFRS Accounting Standards and that receipts and expenditures are being made only in accordance with the authorization of management and directors of the Company; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements.
There has not been any material change to internal controls over financial reporting during the quarter ended December 31, 2025. Management, including the Chief Executive Officer and the Chief Financial Officer, have evaluated the effectiveness of the design and operation of the Company's internal controls over financial reporting. The Chief Executive Officer and the Chief Financial Officer have each concluded that as of December 31, 2025 the Company's internal controls over financial reporting, as defined in National Instrument 52-109 - Certification of Disclosure in Issuer's Annual and Interim Filings, are effective to achieve the purpose for which they have been designed. Because of their inherent limitations, internal controls over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Furthermore, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. The control framework used to evaluate the effectiveness of the design and operation of the Company's internal controls over financial reporting is the 2013 Internal Control - Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission.
‌ADDITIONAL INFORMATION‌
Additional information about the Company, including its current AIF dated June 10, 2025, can be found on SEDAR+ at www.sedarplus.ca, on the ASX website at www.asx.com.au and on the Company's website at www.pmet.ca.
‌QUALIFIED / COMPETENT PERSON‌
The technical information in this MD&A that relates to the MREs, Exploration Target, and exploration results for the Shaakichiuwaanaan Property is based on, and fairly represents, information compiled by Darren L. Smith, M.Sc., P.Geo., who is a Qualified Person as defined by NI 43-101, and member in good standing with the Ordre des Géologues du Québec (Geologist Permit number 01968), and with the Association of Professional Engineers and Geoscientists of Alberta (member number 87868). Mr. Smith has reviewed and approved all technical information in this MD&A related to the above matters.
Mr. Smith is an Executive Vice President of Exploration for the Company. Mr. Smith holds common shares, options, performance share units and restricted share units in the Company.
Mr. Smith has sufficient experience, which is relevant to the style of mineralization, type of deposit under consideration, and to the activities being undertaken to qualify as a Competent Person as described by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr. Smith consents to the inclusion in this MD&A of the matters based on his information in the form and context in which it appears.
The technical information in this MD&A that relates to the FS, including the Mineral Reserve, for the Shaakichiuwaanaan Property is based on, and fairly represents, information compiled by Frédéric Mercier-Langevin, Ing., M.Sc., who is a Qualified Person as defined by NI 43-101, and member in good standing with the Ordre des Ingénieurs du Québec (OIQ). Mr. Mercier-Langevin has reviewed and approved all technical information in this MD&A related to the above matters.
Mr. Mercier-Langevin is the Chief Development and Operating Officer of the Company. Mr. Langevin holds common shares, options, performance share units and restricted share units in the Company.
Mr. Mercier-Langevin has sufficient experience, which is relevant to the style of mineralization, type of deposit under consideration, and to the activities being undertaken to qualify as a Competent Person as described by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr. Mercier-Langevin consents to the inclusion in this MD&A of the matters based on his information in the form and context in which it appears.
The information in this MD&A that relates to the Exploration Target for the Shaakichiuwaanaan Project, which was first reported by the Company in a market announcement titled "Exploration Target for the Shaakichiuwaanaan Lithium Project Outlines District Scale Opportunity, Quebec, Canada" dated August 5, 2024 (Vancouver time) is available on the Company's website at www.pmet.ca, on SEDAR+ at www.sedarplus.ca and on the ASX website at www.asx.com.au.
The information in this MD&A that relates to the July 2025 MRE for the Shaakichiuwaanaan Project, which was first reported by the Company in a market announcement titled "World's Largest Pollucite-Hosted Caesium Pegmatite Mineral Resource Defined at Shaakichiuwaanaan" dated July 20, 2025 (Montreal time) is available on the Company's website at www.pmet.ca, on SEDAR+ at www.sedarplus.ca and on the ASX website at www.asx.com.au.
The information in this MD&A that relates to the FS news release (and associated Mineral Reserve) for the Shaakichiuwaanaan Project, which was first reported by the Company in a market announcement titled "PMET Resources Delivers Positive CV5 Lithium-Only Feasibility Study for its Large-Scale Shaakichiuwaanaan Project" dated October 20, 2025 (Montreal time) is available on the Company's website at www.pmet.ca, on SEDAR+ at www.sedarplus.ca and on the ASX website at www.asx.com.au. The production target and forecast financial information from the FS referred to in this MD&A was reported by the Company in accordance with ASX Listing Rules 5.16 and 5.17 on the date of the original announcement. The Company confirms that, as of the date of this MD&A, all material assumptions and technical parameters underpinning the production target and forecast financial information in the original announcement continue to apply and have not materially changed.
‌CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS‌
This MD&A contains "forward-looking information" or "forward-looking statements" within the meaning of applicable securities laws.
All statements, other than statements of present or historical facts included in this MD&A are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are typically identified by words such as "plan", "development", "growth", "continued", "intentions", "expectations", "strategy", "opportunities", "anticipated", "trends", "potential", "outlook", "ability", "additional", "on track", "prospects", "viability", "estimated", "reaches", "enhancing", "strengthen", "target", "will", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. In particular and without limitation, this MD&A contains forward-looking statements pertaining to unlocking co-product potential through ongoing metallurgical and geological work, including advancement of a potential tantalum recovery circuit at CV5 and continued evaluation of the caesium opportunity at both CV13 and CV5; advanced exploration and bulk sample program; strengthening alignment across the battery materials supply chain and positioning the Company for future offtake and strategic collaboration opportunities; the development of the Company's Shaakichiuwaanaan Property; the potential for resource growth through continued drill exploration at the Shaakichiuwaanaan Property; the development of the Company's non-
core assets; the Company's intentions with respect to its business and operations; the Company's expectations regarding its ability to raise capital and grow its business; the Company's growth strategy and opportunities; anticipated trends and challenges in the Company's business and the industry in which it operates; the Company's potential position in the markets and industries it operates in; the perceived merit and further potential of the Company's properties; the FS, including the timing of release; the ESIA and results thereof; exploration results the potential of caesium and tantalum as potential by-products in the further development of the Shaakichiuwaanaan Project; exploration targets, budgets and forecasted cash flows and return on capital; strategic plans; market price and demand for lithium and the Company's resilience to changes in market price and demand for lithium; permitting or other timelines; government regulations and relations; and the Company's outlook for the financial year ending March 31, 2026.
Key assumptions upon which the Company's forward-looking information is based include, without limitation, the total funding required to bring the Shaakichiuwaanaan Project to production, the Company's ability to raise additional financing when needed and on reasonable terms; the Company's ability to achieve current exploration, development and other objectives concerning the Company's properties; the Company's ability to source services, materials and consumables in the future necessary for the development and operation of the Shaakichiuwaanaan Project on commercially viable terms; the Company's expectation that the current price and demand for lithium, caesium and other commodities will be sustained or will improve; the Company's ability to obtain requisite licences and necessary governmental approvals; the Company's ability to attract and retain key personnel; general business and economic conditions, including competitive conditions, in the market in which the Company operates.
Some of the risks the Company faces and the uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements include, among others, the Company's ability to execute on plans relating to its Shaakichiuwaanaan Project, including the timing thereof; the Company's ability to generate revenue and future capital requirements; the Company's profitability in the short or medium term; mineral resource estimation risks; exploration, development and operating risks and costs; the Company's dependence upon the Shaakichiuwaanaan Property; the titles to the Company's mineral properties being challenged or impugned; the Company receiving and maintaining licenses and permits from appropriate governmental authorities; environmental and safety regulations; land access risk; access to sufficient used and new equipment; maintenance of equipment; the Company's reliance on key personnel; the Company's ability to obtain social acceptability by First Nations with respect to its Shaakichiuwaanaan Project; the Company's reliance on key business relationships; the Company's growth strategy; the Company's ability to obtain insurance; occupational health and safety risks; adverse publicity risks; third party risks; disruptions to the Company's business operations; the Company's reliance on technology and information systems; litigation risks; tax risks; unforeseen expenses; public health crises; climate change; general economic conditions; commodity prices and exchange rate risks; lithium demand; volatility of share price; public company obligations; competition risk; dividend policy; policies and legislation; force majeure; and changes in technology.
Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. As such, these risks are not exhaustive; however, they should be considered carefully. If any of these risks or uncertainties materialize, actual results may vary materially from those anticipated in the forward-looking statements found herein. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, readers should not place undue reliance on forward-looking statements.
The forward-looking statements contained herein are made only as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law. The Company qualifies all of its forward-looking statements by these cautionary statements.
‌APPROVAL‌

The content of this MD&A has been approved by the Board of Directors upon recommendation of the Audit and Risk Committee.

"Ken Brinsden"

Ken Brinsden

President, CEO and Managing Director February 2, 2026