Financial statements
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars)
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NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS In accordance with National Instrument 51-102 Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed consolidated interim financial statements they must be accompanied by a notice indicating that the condensed consolidated interim financial statements have not been reviewed by an auditor. The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by and are the responsibility of the Company’s management. The Company’s auditors have not performed a review of these condensed consolidated interim financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity’s auditor. Page 2
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ Note August 31, 2026 $ May 31, 2026 $ ASSETS Current assets Cash and cash equivalents 84,014,470 119,129,501 GST receivable 672,534 657,113 Prepaid expenses and other assets 1,239,189 1,272,897 Total current assets 85,926,193 121,059,511 Non-current assets Investments 4 549,214 577,410 Property, plant and equipment 5 46,357,495 31,673,406 Exploration and evaluation assets 6 140,357,746 119,617,908 Right of use assets 7 810,027 733,022 Bonds 1,978,101 1,900,824 Total non-current assets 190,052,583 154,502,570 TOTAL ASSETS 275,978,776 275,562,081 LIABILITIES Current liabilities Accounts payable and accrued liabilities 8 10,068,776 6,363,932 Current portion of lease liabilities 7 297,822 197,701 Total current liabilities 10,366,598 6,561,633 Non-current liabilities Non-current portion of lease liabilities 7 542,963 551,949 Provision for site restoration 10 1,575,240 1,553,313 Total non-current liabilities 2,118,203 2,105,262 TOTAL LIABILITIES 12,484,801 8,666,895 SHAREHOLDERS’ EQUITY Share capital 9 670,576,031 670,277,562 Share-based payments reserve 10,237,258 10,420,291 Foreign currency translation reserve 21,412,263 20,573,142 Deficit (438,731,577) (434,375,809) TOTAL SHAREHOLDERS’ EQUITY 263,493,975 266,895,186 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 275,978,776 275,562,081 Nature of Operations - see Note 1 These condensed consolidated interim financial statements were approved for issue by the Board of Directors on October 7, 2026 and are signed on its behalf by: /s/ David Henstridge /s/ Michael Hudson David Henstridge Michael Hudson Director Director The accompanying notes are an integral part of these condensed consolidated interim financial statements. Page 3
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF NET LOSS AND COMPREHENSIVE INCOME (LOSS) (Unaudited - Expressed in Canadian Dollars) ______________________________________________________________________________________________________ Three Months Ended Notes August 31, 2026 $ August 31, 2025 $ Expenses Accretion of interest on lease liabilities 7 10,648 17,962 Administration and corporate costs 3,210,141 1,122,476 Depreciation and amortization 5, 7 207,750 87,270 Accretion on site restoration provision 10 18,648 - Salaries and benefits 1,731,922 564,098 Share-based compensation 9(c)(ii) 115,436 161,028 5,294,545 1,952,834 Loss before other items (5,294,545) (1,952,834) Other items Interest income 965,925 1,142,650 Other income - 13,100 Foreign exchange 1,048 (3,366) Unrealized loss on investments 4(b) (28,196) (125,062) 938,777 1,027,322 Net loss for the period (4,355,768) (925,512) Other comprehensive income Currency translation adjustment 839,121 2,845,009 Comprehensive (loss) income for the period (3,516,647) 1,919,497 Basic and diluted loss per common share $(0.02) $(0.00) Basic and diluted weighted average number of common shares outstanding 269,438,889 258,165,398 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Page 4
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited - Expressed in Canadian Dollars) __________________________________________________________________________________________________________ Three Months Ended August 31, 2026 Share Capital Number of Shares Amount $ Share-Based Payments Reserve $ Foreign Currency Translation Reserve $ Deficit $ Total Shareholders’ Equity $ Balance at May 31, 2026 269,346,976 670,277,562 10,420,291 20,573,142 (434,375,809) 266,895,186 Common shares issued for: - share options 236,227 - - - - - - RSUs 70,359 - - - - - Transfer on exercise of: - share options - 55,114 (55,114) - - - - RSUs - 243,355 (243,355) - - - Share-based compensation: - RSUs - - 115,436 - - 115,436 Currency translation adjustment - - - 839,121 - 839,121 Net loss for the period - - - - (4,355,768) (4,355,768) Balance at August 31, 2026 269,653,562 670,576,031 10,237,258 21,412,263 (438,731,577) 263,493,975 Three Months Ended August 31, 2025 Share Capital Number of Shares Amount $ Share-Based Payments Reserve $ Foreign Currency Translation Reserve $ Deficit $ Total Shareholders’ Equity $ Balance at May 31, 2025 258,041,648 658,153,333 13,973,409 (2,086,628) (428,899,997) 241,140,117 Common shares issued for: - lead manager options 400,000 310,236 - - - 310,236 - RSUs 62,500 - - - - - Transfer on exercise of: - lead manager options - 162,828 (162,828) - - - - RSUs - 122,990 (122,990) - - - Share-based compensation: - RSUs - - 161,028 - - 161,028 Currency translation adjustment - - - 2,845,009 - 2,845,009 Net loss for the period - - - - (925,512) (925,512) Balance at August 31, 2025 258,504,148 658,749,387 13,848,619 758,381 (429,825,509) 243,530,878 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Page 5
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited - Expressed in Canadian Dollars) _______________________________________________________________________________________________________ Three Months Ended August 31, 2026 $ August 31, 2025 $ Operating activities Net loss for the period (4,355,768) (925,512) Adjustments for: Depreciation and amortization 207,750 87,270 Foreign exchange - 1,325,410 Share-based compensation 115,436 161,028 Accretion of interest on lease liabilities 10,648 17,962 Accretion on site restoration provision 18,648 - Unrealized loss on investments 28,196 125,062 Changes in non-cash working capital items: Amount receivable - 76,343 GST receivable (14,289) (262,675) Prepaid expenses and other assets (292,366) (435,664) Accounts payable and accrued liabilities (1,518,532) (1,237,184) Net cash used in operating activities (5,800,277) (1,067,960) Investing activities Expenditures on exploration and evaluation assets (15,157,076) (5,545,149) Additions to property, plant and equipment (14,166,879) (4,325,465) Additions to bonds (72,873) (43,049) Net cash used in investing activities (29,396,828) (9,913,663) Financing activities Issuance of common shares - 310,236 Payments on lease liabilities (85,634) (55,639) Net cash (used in) provided by financing activities (85,634) 254,597 Effect of exchange rate changes on cash 167,708 694,992 Net change in cash and cash equivalents (35,115,031) (10,032,034) Cash and cash equivalents at beginning of period 119,129,501 151,212,676 Cash and cash equivalents at end of period 84,014,470 141,180,642 Supplemental cash flow information - Note 13 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Page 6
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 1. Nature of Operations Southern Cross Gold Consolidated Ltd. (the “Company”) was incorporated on March 10, 2004 under the Company Act (British Columbia) and is the ultimate parent company of the Group. The Company’s common shares trade on the Toronto Stock Exchange (“TSX”) under the symbol “SXGC”, the Australian Securities Exchange (“ASX”) under the symbol “SX2”, on the OTCQX under the symbol “SXGCF” and on the Frankfurt Exchange under the symbol MV3.F. The Company’s executive office is located at Suite 4.02, 454 Collins Street, Melbourne, Victoria, 3000, Australia. The Company is a resource company engaged in the acquisition, exploration and development of mineral interests in Australia. As at August 31, 2026 the Company’s flagship mineral property is considered to be in the advanced exploration and pre-development stage. The Company has not earned any production revenue. On the basis of information to date the Company has not yet determined whether these properties contain economically recoverable ore reserves. The Company is conducting drilling on its flagship property with the objective of supporting an initial mineral resource estimate. The underlying value of the exploration and evaluation assets is entirely dependent on the existence of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete development and upon future profitable production. Exploration and evaluation assets represent costs incurred to date, less amounts depreciated and/or written off, and do not necessarily represent present or future values. As at August 31, 2026 the Company had working capital of $75,559,595 and management considers the Company has adequate resources to maintain its core operations, conduct planned exploration and development programs on its existing exploration and evaluation assets and discharge its obligations as they become due in the next twelve months. 2. Basis of Preparation Statement of Compliance These condensed consolidated interim financial statements have been presented in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”), applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting. The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. Basis of Measurement The Company’s condensed consolidated interim financial statements have been prepared on the historical cost basis except for the revaluation of certain financial assets and financial liabilities to fair value. These condensed consolidated interim financial statements are presented in Canadian dollars unless otherwise stated. Details of the Group In addition to the Company, the condensed consolidated interim financial statements include all subsidiaries. Subsidiaries are all corporations over which the Company is able, directly or indirectly, to control financial and operating policies, which is the authority usually connected with holding majority voting rights. Subsidiaries are fully consolidated from the date on which control is acquired by the Company. Inter-company transactions and balances are eliminated upon consolidation. They are de-consolidated from the date that control by the Company ceases. As at August 31, 2026 the significant subsidiaries of the Company are Southern Cross Gold Pty Ltd. (“SXG AUS”), its wholly-owned Australian subsidiary, and SXG AUS’ subsidiaries, all incorporated in Australia and 100% owned. Page 7
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 3. Material Accounting Policies These condensed consolidated interim financial statements have been prepared on a basis consistent with the material accounting policies disclosed in the consolidated financial statements for the year ended May 31, 2026. Accordingly, they should be read in conjunction with the consolidated financial statements for the year ended May 31, 2026. Accounting Standards and Interpretations Issued but Not Yet Effective IFRS 18, Presentation and Disclosure in Financial Statements, which will replace IAS 1, Presentation of Financial Statements, aims to improve how companies communicate in their financial statements, with a focus on information about financial performance in the statement of profit or loss, in particular additional defined subtotals, disclosures about management-defined performance measures and new principles for aggregation and disaggregation of information. IFRS 18 is accompanied by limited amendments to the requirements in IAS 7 Statement of Cash Flows. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027. Companies are permitted to apply IFRS 18 before that date. The Company is assessing the impact of adoption of IFRS 18 and is working to identify all impacts the changes will have on the consolidated financial statements. 4. Investments As at August 31, 2026 Number Cost $ Unrealized Loss $ Carrying Value $ Common shares Nagambie Resources Limited (“Nagambie”) 53,361,046 1,768,741 (1,238,652) 530,089 Kingsmen Resources Limited (“Kingsmen”) 18,750 45,000 (25,875) 19,125 1,813,741 (1,264,527) 549,214 As at May 31, 2026 Number Cost $ Unrealized Loss $ Carrying Value $ Common shares Nagambie 53,361,046 1,768,741 (1,213,269) 555,472 Kingsmen 18,750 45,000 (23,062) 21,938 1,813,741 (1,236,331) 577,410 (a) Pursuant to a subscription agreement dated March 24, 2020 the Company subscribed for 50,000,000 ordinary shares of Nagambie (the “Nagambie Shares”). As consideration for the acquisition of the Nagambie Shares the Company issued Nagambie 2,681,868 common shares of the Company, at a fair value of $1,572,500. As long as the Company continues to hold the Nagambie Shares it maintains a right of refusal to take up or match proposals over tenements held by Nagambie over approximately 718 square kilometres. The Company subsequently purchased an additional 3,361,046 ordinary shares of Nagambie for $196,241 through open-market purchases. (b) The carrying values of the investments were determined using quoted market values. During the three months ended August 31, 2026 the Company recorded an unrealized loss of $28,196 (2025 - $125,062) on its investments held. Page 8
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 5. Property, Plant and Equipment Cost: Land $ Buildings $ Office and Field Equipment $ Leasehold and Property Improvements $ Vehicles $ Total $ Balance at May 31, 2025 16,173,436 - 346,912 - 243,494 16,763,842 Additions 7,789,851 2,260,587 1,668,859 528,312 364,450 12,612,059 Disposals - - - - (5,549) (5,549) Foreign exchange movement 2,463,754 149,506 152,167 34,940 53,073 2,853,440 Balance at May 31, 2026 26,427,041 2,410,093 2,167,938 563,252 655,468 32,223,792 Additions 11,842,589 2,036,579 538,967 - 158,523 14,576,658 Disposals - - - (3,887) - (3,887) Transfers and re-classifications 47,530 - (18,168) - 18,168 47,530 Foreign exchange movement 146,195 20,771 12,752 1,106 3,437 184,261 Balance at August 31, 2026 38,463,355 4,467,443 2,701,489 560,471 835,596 47,028,354 Accumulated Depreciation: Balance at May 31, 2025 - - (100,082) - (124,008) (224,090) Depreciation - (69,517) (147,683) (5,747) (62,203) (285,150) Disposals - - - - 4,421 4,421 Foreign exchange movement - (4,598) (25,540) (380) (15,049) (45,567) Balance at May 31, 2026 (74,115) (273,305) (6,127) (196,839) (550,386) Depreciation - (23,233) (61,597) (4,913) (28,735) (118,478) Foreign exchange movement - (331) (991) (51) (622) (1,995) Balance at August 31, 2026 - (97,679) (335,893) (11,091) (226,196) (670,859) Carrying Value: Balance at May 31, 2026 26,427,041 2,335,978 1,894,633 557,125 458,629 31,673,406 Balance at August 31, 2026 38,463,355 4,369,764 2,365,596 549,380 609,400 46,357,495 (i) In December 2024 SXG AUS entered into an agreement and acquired a special purpose company holding agricultural land situated over the Sunday Creek Project area and cash of $16,937,494 (AUD $18,750,000) for which SXG AUS issued 22,088,670 SXG AUS ordinary shares with a fair value of $68,839,315 (AUD $76,205,912). SXG AUS also paid $1,345,307 (AUD $1,491,424) for legal and associated costs relating to the acquisition, for a total consideration of $70,184,622 (the “Land Purchase Consideration”). The acquisition of the special purpose company did not meet the criteria of a business combination under IFRS 3. The Land Purchase Consideration has been allocated as follows: $ Cash 16,937,494 Land, at appraised value 11,291,250 Exploration and evaluation assets 41,955,878 70,184,622 (ii) During the three months ended August 31, 2026 the Company purchased agricultural properties situated over the Sunday Creek Project area for total cash consideration of $13,879,168 (fiscal 2026 - $7,789,851). All of the purchase consideration has been attributed to land and building costs. Page 9
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 6. Exploration and Evaluation Assets As at August 31, 2026 Acquisition Costs $ Deferred Exploration Costs $ Foreign Exchange Movement $ Total $ Sunday Creek 42,754,936 81,205,013 13,462,024 137,421,973 Redcastle 284,794 2,613,327 37,652 2,935,773 43,039,730 83,818,340 13,499,676 140,357,746 As at May 31, 2026 Acquisition Costs $ Deferred Exploration Costs $ Foreign Exchange Movement $ Total $ Sunday Creek 42,754,936 60,872,026 13,067,277 116,694,239 Redcastle 284,794 2,607,169 31,706 2,923,669 43,039,730 63,479,195 13,098,983 119,617,908 (i) Sunday Creek Project Pursuant to an acquisition agreement, dated March 24, 2020 the Company acquired 100% of the shares in Clonbinane Goldfield Pty Ltd (“Clonbinane”) from Nagambie. As consideration the Company paid Nagambie a total of $454,480 (AUD $528,880) cash, issued 315,514 common shares of the Company at a fair value of $185,000 and incurred legal fees of $35,786. Clonbinane’s sole asset was the Sunday Creek Project. During fiscal 2025 the Company capitalized $41,955,878 to the Sunday Creek Project, as described in Note 5(i). (ii) Redcastle Property On March 24, 2020 the Company entered into an option and joint venture agreement pursuant to which the Company had the right to earn up to a 70% joint venture interest in Nagambie’s Redcastle gold property located in Victoria, Australia by incurring AUD $1,000,000 of exploration expenditures on the Redcastle property. In June 2021 the Company notified Nagambie that the Company had earned a 70% interest in the Redcastle gold property. On October 24, 2024 Nagambie and the Company entered into a purchase and sale agreement whereby the Company paid $228,550 (AUD $250,000) and acquired Nagambie’s remaining 30% joint venture interest. (iii) Commitments Australia tenement spending commitments are subject to renegotiation when an application for a mining lease and/or renewal of exploration permits is made or at other times and are subject to whether the Company decides to continue a tenement’s rights until its expiry. The amounts detailed below are the minimum expenditures required to maintain ownership of the current tenements held as at August 31, 2026. AUD $ Within one year 16,418,169 One to five years 8,028,165 Total 24,446,334 Page 10
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 7. Right of Use Assets Cost: $ Balance at May 31, 2025 1,543,743 Additions 156,305 Re-measurement (671,365) Foreign exchange movement 151,924 Balance at May 31, 2026 1,180,607 Additions 97,125 Re-measurement 67,086 Foreign exchange movement 3,644 Balance at August 31, 2026 1,348,462 Accumulated amortization: Balance at May 31, 2025 (280,126) Amortization (273,547) Re-measurement 147,495 Foreign exchange movement (41,407) Balance at May 31, 2026 (447,585) Amortization (89,272) Foreign exchange movement (1,578) Balance at August 31, 2026 (538,435) Carrying value: Balance at May 31, 2026 733,022 Balance at August 31, 2026 810,027 The Company has lease contracts for office and warehouse premises. Effective April 28, 2025 the Company entered into an office lease agreement with the family trust of the Company’s Chief Executive Officer for a term of five years plus a three year renewal option, currently at AUD $8,206 per month. As at August 31, 2026 the lease liabilities have remaining lease terms of approximately three to eight years and were determined using an effective interest rate between 5% to 7%. Three Months Ended August 31, 2026 $ 2025 $ Balance, beginning of period 749,650 1,264,505 Additions 97,125 14,927 Adjustment to lease terms 67,086 - Accretion of interest 10,648 17,962 Payments (85,634) (55,639) Foreign exchange movement 1,910 (13,555) Balance, end of period 840,785 1,228,200 Current portion of lease liabilities 297,822 224,993 Non-current portion of lease liabilities 542,963 1,003,207 Total lease liabilities 840,785 1,228,200 Page 11
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 7. Right of Use Assets (continued) As at August 31, 2026 the total of future minimum lease payments under the leases are as follows: $ Less than one year 327,307 Greater than one year 613,855 941,162 8. Accounts Payable and Accrued Liabilities As at August 31, 2026 $ As at May 31, 2026 $ Trade creditors and accounts payable 4,766,435 4,702,302 Accruals and provisions 5,302,341 1,661,630 10,068,776 6,363,932 9. Share Capital (a) Authorized Share Capital The Company’s authorized share capital consists of an unlimited number of common shares without par value. (b) Equity Financings The Company did not conduct any equity financing during the three months ended August 31, 2026 or fiscal 2026. (c) Incentive Plans On November 17, 2025 the Company adopted a new omnibus equity incentive plan (the “Omnibus Plan”). The Omnibus Plan provides flexibility to the Company to grant equity-based incentive awards in the form of share options, restricted share units (“RSUs”), performance share units and deferred share units. The total number of common shares of the Company reserved for issuance granted under the Omnibus Plan and all other security-based compensation arrangements shall not exceed 10% of the issued and outstanding common shares from time to time. (i) No share options were granted during the three months ended August 31, 2026 and 2025. A summary of the Company’s share options at August 31, 2026 and 2025 and the changes for the three months ended on those dates, is as follows: 2026 2025 Number of Options Outstanding Weighted Average Exercise Price Number of Options Outstanding Weighted Average Exercise Price Balance, beginning of period 1,350,000 CDN $1.80 (2) 11,706,373 CDN $0.84 Exercised (250,000) AUD $0.66 (1) - - Expired (250,000) AUD $0.66 - - Balance, end of period 850,000 CDN $2.47 (2) 11,706,373 CDN $0.84 (1) During the three months ended August 31, 2026, 250,000 share options were exercised on a cash-less basis (net exercise) for the issuance of 236,227 common shares. (2) Share options exercisable in AUD $ are stated in Canadian currency equivalents at the exchange rate at the end of the period. Page 12
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 9. Share Capital (continued) The following table summarizes information about the Company share options outstanding and exercisable at August 31, 2026: Number Outstanding and Exercisable Exercise Price Expiry Date 250,000 AUD $0.30 May 5, 2027 600,000 CDN $3.38 March 10, 2028 850,000 (ii) During the three months ended August 31, 2026 the Company recognized $115,436 (2025 - $161,028) share-based compensation expense on the vesting of RSUs which were awarded in prior fiscal years. During the three months ended August 31, 2026 the Company issued 70,359 (2025 - 62,500) common shares on the redemption of RSUs. As at August 31, 2026, 163,499 RSUs remained outstanding, of which 14,648 RSUs have vested and the remaining 148,851 RSUs are subject to vesting provisions. A summary of RSUs at August 31, 2026 and 2025 and the changes for the three months ended on those dates, is as follows: Number of RSUs Outstanding 2026 2025 Balance, beginning of period 238,858 230,000 Awarded - 142,519 Exercised (70,359) (62,500) Forfeited (5,000) - Balance, end of period 163,499 310,019 See also Note 15. (d) SXG AUS Lead Manager Options During fiscal 2023 SXG AUS issued 3,000,000 options (the “Lead Manager Options”) to its broker in connection with its private placement in November 2022. The Lead Manager Options were exercisable at AUD $0.87 per share with an expiry date of November 28, 2025. As at August 31, 2025, 350,000 Lead Manager Options remained outstanding. On October 24, 2025 and November 18, 2025 the 350,000 Lead Manager Options were exercised for $273,000 (AUD $304,500). 10. Provision for Site Restoration Three Months Ended August 31, 2026 $ 2025 $ Balance, beginning of period 1,553,313 - Accretion 18,648 - Foreign exchange movement 3,279 - Balance, end of period 1,575,240 - Page 13
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 10. Provision for Site Restoration (continued) The total undiscounted amount of estimated cash flows required to settle the Company’s estimated obligation at August 31, 2026 was AUD $2,078,330 which, as at August 31, 2026, has been discounted using a credit-adjusted pre-tax risk-free rate of 4.83% and an inflation rate of 2.5%. The present value of the reclamation liability may be subject to change based on management’s current estimates, changes in remediation technology or changes to the applicable laws and regulations. Such changes will be recorded in the accounts of the Company as they occur. The settlement of the obligation is anticipated to occur in December 2031. 11. Related Party Disclosures Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consists of members of the Company’s Board of Directors and its executive officers. (a) Transactions with Key Management Personnel During the three months ended August 31, 2026 the Company incurred a total of $620,655 (2025 - $263,843) to current and former key management personnel of the Company for salaries and fees which have been allocated based on the nature of the services provided: expensed $535,022 (2025 - $201,305) to administration and corporate costs and salaries and benefits, and capitalized $85,633 (2025 - $62,538) to exploration and evaluation assets. During the three months ended August 31, 2026 the Company also recorded $72,108 (2025 - $nil) share-based compensation on the vesting of RSUs which were awarded in the prior fiscal year. As at August 31, 2026 $29,802 (May 31, 2026 - $107,773) remained unpaid and has been included in accounts payable and accrued liabilities. (b) On November 4, 2025 the Company’s then chief financial officer (“CFO”) resigned. During the three months ended August 31, 2025 the Company incurred a total of $23,000 with Chase Management Ltd. (“Chase”), a private corporation owned by the former CFO of the Company, for accounting and administration services provided by Chase personnel, excluding the former CFO, and $1,005 for office rent prior to the CFO’s resignation. 12. Financial Instruments and Risk Management Categories of Financial Assets and Financial Liabilities Financial instruments are classified into one of the following categories: fair value through profit or loss (“FVTPL”); amortized cost; and fair value through other comprehensive income (“FVOCI”). The carrying values of the Company’s financial instruments are classified into the following categories: Financial Instrument Category August 31, 2026 $ May 31, 2026 $ Cash and cash equivalents FVTPL 84,014,470 119,129,501 Investments FVTPL 549,214 577,410 Bonds Amortized cost 1,978,101 1,900,824 Accounts payable and accrued liabilities Amortized cost (10,068,776) (6,363,932) Lease liabilities Amortized cost (840,785) (749,650) Page 14
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 12. Financial Instruments and Risk Management (continued) The Company’s financial instruments recorded at fair value require disclosure about how the fair value was determined based on significant levels of inputs described in the following hierarchy: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions occur in sufficient frequency and value to provide pricing information on an ongoing basis. Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1. Prices in Level 2 are either directly or indirectly observable as of the reporting date. Level 2 valuations are based on inputs including quoted forward prices for commodities and time value and volatility factors, which can be substantially observed or corroborated in the market place. Level 3 - Valuations in this level are those with inputs for the asset or liability that are not based on observable market data. The recorded amounts for accounts payable and accrued liabilities approximate their fair value due to their short-term nature. The recorded amounts for lease liabilities approximate their fair value and they have interest at market rates for similar debt. The recorded amounts for cash and cash equivalents, investments and bonds approximate their fair value. The Company’s fair value of cash and cash equivalents, and investments under the fair value hierarchy are measured using Level 1 inputs. The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below: Credit Risk Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash. Management believes that the potential loss related to the credit risk included in cash is remote. Liquidity Risk Liquidity risk is the risk that the Company will not have the resources to meet its obligations as they fall due. The Company manages this risk by closely monitoring cash forecasts and managing resources to ensure that it will have sufficient liquidity to meet its obligations. The following table is based on the contractual maturity dates of financial assets and the earliest date on which the Company can be required to settle financial liabilities. Contractual Maturity Analysis at August 31, 2026 Less than 3 Months $ 3 - 12 Months $ 1 - 5 Years $ Over 5 Years $ Total $ Cash and cash equivalents 84,014,470 - - - 84,014,470 Investments - - 549,214 - 549,214 Bonds - - 1,978,101 - 1,978,101 Accounts payable and accrued liabilities (10,068,776) - - - (10,068,776) Lease liabilities (98,781) (228,526) (458,978) (154,877) (941,162) Market Risk Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity and equity prices. These fluctuations may be significant. Page 15
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 12. Financial Instruments and Risk Management (continued) (a) Interest Rate Risk The Company is exposed to interest rate risk to the extent that the cash bears floating rates of interest. The interest rate risk on cash and on the Company’s obligations is not considered significant. (b) Foreign Currency Risk The Company’s functional currency is the Canadian dollar. The Company maintains foreign currency bank accounts to support the cash needs of its foreign operations. Management believes the foreign exchange risk related to currency conversions is minimal and therefore does not hedge its foreign exchange risk. At August 31, 2026, 1 Canadian dollar was equal to 1.01 Australian dollar and 0.72 US dollar. Balances are as follows: Australian $ US $ Equivalent Canadian $ Cash and cash equivalents 72,848,363 27,061 72,405,148 GST receivable 570,608 - 566,842 Bonds 1,991,243 - 1,978,101 Accounts payable and accrued liabilities (10,074,928) - (10,008,433) 65,335,286 27,061 64,941,658 Based on the net exposures as of August 31, 2026 and assuming that all other variables remain constant, a 10% fluctuation on the Canadian dollar against the Australian dollar and US dollar would result in the Company’s other comprehensive income or loss being approximately $6,500,000 higher (or lower). Capital Management The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition and exploration of mineral properties. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business. The Company defines capital that it manages as share capital, cash and cash equivalents and short-term investments. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. Page 16
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SOUTHERN CROSS GOLD CONSOLIDATED LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED AUGUST 31, 2026 (Unaudited - Expressed in Canadian Dollars) _____________________________________________________________________________________________ 13. Supplemental Cash Flow Information During the three months ended August 31, 2026 and 2025 non-cash activities were conducted by the Company as follows: 2026 $ 2025 $ Operating activities Prepaid expenses and other assets 453,422 - Accounts payable and accrued liabilities 5,182,069 - 5,635,491 - Investing activities Additions to property plant and equipment (453,422) - Expenditures on exploration and evaluation assets (5,182,069) - Additions to and re-measurement of right of use assets (164,211) (14,927) (5,799,702) (14,927) Financing activities Lease liabilities 164,211 14,927 Issuance of common shares 298,469 285,818 Share-based payments reserve (298,469) (285,818) 164,211 14,927 14. Segmented Information The Company operates in one reportable segment, the exploration and development of unproven exploration and evaluation assets. The Company is in the exploration stage and has no reportable segment revenues or operating results. The Company’s total assets are segmented geographically as follows: As at August 31, 2026 Canada $ Australia $ Total $ Current assets 11,891,246 74,034,947 85,926,193 Investments 19,125 530,089 549,214 Property, plant and equipment - 46,357,495 46,357,495 Exploration and evaluation assets - 140,357,746 140,357,746 Right of use assets - 810,027 810,027 Bonds - 1,978,101 1,978,101 11,910,371 264,068,405 275,978,776 As at May 31, 2026 Canada $ Australia $ Total $ Current assets 37,255,514 83,803,997 121,059,511 Investments 21,938 555,472 577,410 Property, plant and equipment - 31,673,406 31,673,406 Exploration and evaluation assets - 119,617,908 119,617,908 Right of use assets - 733,022 733,022 Bonds - 1,900,824 1,900,824 37,277,452 238,284,629 275,562,081 Page 17