Financial statements
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(An Exploration Stage Company) Condensed Interim Consolidated Financial Statements (unaudited and expressed in Canadian Dollars) For the three and six-month periods ended June 30, 2026, and 2025 [Note: an auditor has not reviewed these unaudited interim financial statements]
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Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) PAGE Condensed Interim Consolidated Statements of Financial Position 1 Condensed Interim Consolidated Statements of Comprehensive Loss 2 Condensed Interim Consolidated Statements of Changes in Equity 3 Condensed Interim Consolidated Statements of Cash Flows 4 Notes to the Condensed Interim Consolidated Financial Statements 5 - 15
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1 NORTHERN SHIELD RESOURCES INC. (An Exploration Stage Company) Condensed Interim Consolidated Statements of Financial Position as at June 30, 2026 and December 31, 2025 (unaudited and expressed in Canadian Dollars) June 30,December 31, As at 2026 2025(unaudited)(unaudited) CURRENT ASSETS Cash 689,884$ 784,654$ Amounts receivable 86,002 50,274 Subscriptions receivable - 75,000 Prepaid expenses 161,249 111,995 937,135 1,021,923 NON-CURRENT ASSETS Investment in shares 833 833 Exploration and evaluation assets (Note 3) 3,904,414 3,154,813 Property and equipment (Note 4) 33,974 26,757 4,876,356$ 4,204,326$ CURRENT LIABILITIES Accounts payable and accrued liabilities 408,179$ 427,088$ Deferred flow-through permium liability (Note 5) 45,406 84,181 453,585 511,269 SHAREHOLDERS' EQUITY Share capital (Note 6) 36,945,777 35,883,888 Reserves 4,858,990 4,858,990 Deficit (37,381,996) (37,049,821) 4,422,771 3,693,057 4,876,356$ 4,204,326$ Nature of operations and going concern (Note 1) The accompanying notes are an integral part of the condensed consolidated interim financial statements. APPROVED BY THE BOARD /s/ Ian C. Bliss Director /s/ Russell M. Richards Director
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2 NORTHERN SHIELD RESOURCES INC. (An Exploration Stage Company) Condensed Interim Consolidated Statements of Comprehensive Profit/(Loss) for the three and six-month periods ended June 30, 2026 and 2025 (unaudited and expressed in Canadian Dollars) June 30, June 30, June 30, June 30, 2026 2025 2026 2025 (3 months)(3 months)(6 months)(6 months) (Unaudited)(Unaudited)(Unaudited)(Unaudited) Expenses Property write-downs (Note 3) 3,900$ 3,900$ 7,400$ 7,800$ General and administrative (Note 8) 172,709 122,709 367,523 283,404 Stock-based compensation (Note 6) - 166,455 - 166,455 Loss before other income (expenses) 176,609 293,064 374,923 457,659 Other income (expenses) Government assistance (Note 10) - - - 691 Recognition of flow-through share premium liability (Note 5)30,337 48,889 38,775 73,845 Interest income 17 - 3,973 - NET LOSS AND COMPREHENSIVE LOSS 146,255$ 244,175$ 332,175$ 383,123$ Weighted average common shares outstanding153,442,268 107,496,234 147,149,768 100,561,453 Basic and diluted loss per share (Note 7) 0.00$ 0.00$ 0.00$ 0.00$ The accompanying notes are an integral part of the condensed consolidated interim financial statements.
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3 NORTHERN SHIELD RESOURCES INC. (An Exploration Stage Company) Condensed Consolidated Interim Statements of Changes in Equityfor the six-month periods ended June 30, 2026 and 2025 (unaudited and expressed in Canadian dollars) Share Capital Reserves Number of Shares Amount Share-based Payments Warrants Deficit Total Balance at December 31, 2024 91,364,091 33,918,739$ 4,667,523$ 74,029$ (36,356,591)$ 2,303,700$ Shares issued for cash 16,825,000 673,000 - - - 673,000 Shares issued by flow-through share placement4,550,000 227,500 - - - 227,500 Flow-through premium liability - (3,500) - - - (3,500) Share issue costs - (32,376) - 5,418 - (26,958) Expiry of warrants - 1,400 - (1,400) - - Share-based compensation - - 166,455 - - 166,455 Loss for the period - - - - (383,123) (383,123) Balance at June 30, 2025 112,739,091 34,784,763 4,833,978 78,047 (36,739,714) 2,957,074 Shares issued for cash 7,200,000 360,000 - - - 360,000 Shares issued by flow-through placement14,636,510 805,008 - - - 805,008 Shares issued upon exerise of warrants750,000 75,000 - - - 75,000 Flow-through premium liability - (115,183) - - - (115,183) Share issue costs - (95,494) - 16,759 - (78,735) Expiry of warrants - 69,794 - (69,794) - - Loss for the period - - - - (310,107) (310,107) Balance at December 31, 2025 135,325,601 35,883,888 4,833,978 25,012 (37,049,821) 3,693,057 Shares issued for property option1,450,000 72,500 - - - 72,500 Shares issued for cash 16,666,667 1,000,000 - - - 1,000,000 Share issue costs - (10,611) - - - (10,611) Loss for the period - - - - (332,175) (332,175) Balance at June 30, 2026 153,442,268 36,945,777$ 4,833,978$ 25,012$ (37,381,996)$ 4,422,771$ The accompanying notes are an integral part of the condensed consolidated interim financial statements.
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4 NORTHERN SHIELD RESOURCES INC. (An Exploration Stage Company) Condensed Interim Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2026 and 2025 (unaudited and expressed in Canadian Dollars) June 30, June 30, 2026 2025 (6 months) (6 months) NET INFLOW (OUTFLOW) OF CASH AND CASH EQUIVALENTS (Unaudited)(Unaudited) RELATED TO THE FOLLOWING ACTIVITIES: OPERATING Net profit/(loss) (332,175)$ (383,123)$ Items not affecting cash Amortization - administrative 1,397 1,419 Stock-based compensation - 166,455 Recognition of flow-through premium (38,775) (70,345) Property write-down 7,400 7,800 Changes in non-cash operating working capital items: Amounts receivable (35,728) - Subscription receivable - (36,811) Prepaid expenses (49,254) (48,549) Accounts payable and accrued liabilities (60,198) (35,067) (507,333) (398,221) CASH FLOW FROM INVESTING ACTIVITIES Expenditures on mineral properties (641,729) (53,391) Disposal/(acquisition) of property & equipment (10,097) - (651,826) (53,391) CASH FLOW FROM FINANCING ACTIVITIES Issuance of share capital, net of issuance costs 1,064,389 770,042 1,064,389 770,042 NET CASH AND CASH EQUIVALENTS INFLOW (94,770) 318,430 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 784,654 386,939 CASH AND CASH EQUIVALENTS, END OF PERIOD 689,884$ 705,369$ The accompanying notes are an integral part of the condensed consolidated interim financial statements.
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 5 1. NATURE OF OPERATIONS AND GOING CONCERN Northern Shield Resources Inc. (the “Company" or "Northern Shield"), an exploration and evaluation stage company, incorporated under the Canada Business Corporations Act, is a natural resource company engaged in the business of identifying, acquiring, and exploring mineral properties located primarily in Eastern Canada. The Company’s head office is situated at 150 Elgin St, 10th Floor, Ottawa, Ontario. The Company’s shares trade on the TSX Venture Exchange under the symbol NRN. The Company has not yet determined whether any of their properties contain mineral reserves that are economically recoverable. The recoverability of the amounts shown for mineral properties is dependent upon the existence of reserves, securing and maintaining title and beneficial interest in the properties, the ability of the Company to obtain necessary financing to complete the development of the properties, and ultimately upon future profitable production or proceeds from disposition of the mineral properties. As Northern Shield does not have an interest in revenue-producing properties, the Company has no operating income or earnings and, as such, its net loss may not be a meaningful indicator of its performance or potential. Exploration activities and the Company's expenses are financed by the periodic issuance of common shares and other equity securities. There are many external factors that can adversely affect general workforces, economies, and financial markets globally. Examples include, but are not limited to, the COVID-19 global pandemic and political conflict in other regions. It is not possible for the Company to predict the duration or magnitude of adverse results of such external factors and their effect on the Company’s business or ability to raise funds. Going concern These consolidated financial statements have been prepared in accordance with accounting principles applicable to a going concern, which assume that the Company will realize its assets and discharge its liabilities in the normal course of business. At June 30, 2026, the Company had accumulated losses of $37,381,996. For the six-month period then ended it had incurred a loss of $332,175 and negative operating cash flows of $507,333.
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 6 2. SIGNIFICANT ACCOUNTING POLICIES Statement of Compliance These consolidated financial statements ("Financial Statements") have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"). The Board of Directors authorized these Financial Statements for issue on August 27, 2026. Basis of Preparation These Financial Statements have been prepared on a historical cost basis except for financial instruments measured at fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information. Basis of Consolidation These consolidated financial statements include the accounts of the Company and its wholly owned Canadian subsidiary Seabourne Resources Inc. All intercompany balances and transactions are eliminated upon consolidation. Use of Judgments and Estimates In preparing these interim financial statements, management has made 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. The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2025. Significant Accounting Policies The policies applied in these condensed interim financial statements are consistent with policies disclosed in Note 2 of the financial statements for the year ended December 31, 2025. These condensed interim financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2025.
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 7 3. EXPLORATION AND EVALUATION ASSETS The following table summarizes the exploration expenditures incurred on each of the Company’s mineral properties: Root & Cellar During the year ended December 31, 2019, the Company entered into a property exploration option agreement with a prospector that gives the Company the right to acquire up to an 100% interest in the Root & Cellar property in Newfoundland by making total cash payments of $165,000, issuing the prospector 2,200,000 common shares and incurring $2,150,000 in exploration expenditures. During the year ended December 31, 2023, and pursuant to the agreement, the Company issued 200,000 shares to the vendor which allowed for the extension of the option period to six years. During the year ended December 31, 2024, the Company finished satisfying the requirements of the agreement and now holds a 100% interest in the property. The prospector retains a 2.5% NSR of which 1.0% may be bought back by the Company for $1,500,000. Idefix The Company currently holds a 100% interest in the Idefix property. QC NL NL NL NS NL IdefixRoot&CellarFortuneCape St Mary'sShot RockNew PptiesTotal Percent Ownership100% 100% 69%% 100% 88.6%100% At December 31, 2024 -$ 2,438,927$ -$ -$ -$ -$ 2,438,927$ Expenditures Acquisition 4,915 210 - - - - 5,125 Exploration - 710,761 - - 15,600 - 726,361 Total Expenditures 4,915 710,971 - - 15,600 - 731,486 Property write-down - - - - (15,600) - (15,600) At December 31, 20254,915$ 3,149,898$ -$ -$ -$ -$ 3,154,813$ Expenditures Acquisition - 22,515 83,610 17,010 - - 123,135 Exploration - 407,225 2,806 210,420 7,400 6,015 633,866 Total Expenditures - 429,740 86,416 227,430 7,400 6,015 757,001 Property write-down - - - - (7,400) (7,400) At June 30, 2026 4,915$ 3,579,638$ 86,416$ 227,430$ -$ 6,015$ 3,904,414$
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 8 3. EXPLORATION AND EVALUATION ASSETS (continued) Fortune During the six-month period ended June 30, 2026, the Company entered into two property option agreements with two separate prospector groups, each of which gives the Company the right to acquire up to a 100% interest in the agreements’ underlying claims. Pursuant to the agreements, the Company paid $20,590 and issued 1,050,000 Common Shares during the period. Over the subsequent four-year period, the Company will pay a further $280,000 in cash and issue a further 4,500,000 shares to satisfy the terms of the agreements. Each prospector group retains a 2.0% NSR of which 1.0% may be bought back by the Company for $1,500,000 and $2,000,000 respectively. The Company expanded the property area covered by the agreements through significant direct staking. Cape St. Mary’s During the six-month period ended June 30, 2026, the Company acquired its new Cape St. Mary’s property (“CSM”) through direct staking. 4. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS Exploration-related asset amortization of $1,483 was allocated to mineral properties during the six-month period ended June 30, 2026 (2025 - $1,821).
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 9 5. DEFERRED FLOW-THROUGH PREMIUM LIABILITY This amount represents the deferred flow-through premium liability recognized on flow-through share issuances that will be recorded as other income as the flow-through funds raised are expended on exploration. The following is a continuity of the flow-through premium liability: Balance at December 31, 2024 $ 122,411 Additions to flow-through premium liability 118,683 Settlement of liability through qualified expenditures (156,916) Balance at December 31, 2025 84,181 Additions to flow-through premium liability - Settlement of liability through qualified expenditures (38,775) Balance at June 30, 2026 $ 45,406 As at June 30, 2026, the Company is obligated to spend approximately $362,000 (December 31, 2025 – $788,000) on qualifying expenditures related to its flow-through shares issuances. 6. SHARE CAPITAL Authorized and Issued An unlimited number of voting common shares are authorized for issue and, subject to priority rights of other share classes, are entitled to receive dividends when and if declared by the Board of Directors. There were 153,442,268 voting common shares issued and outstanding at June 30, 2026 (135,325,601 at December 31, 2025). An unlimited number of preferred shares are authorized for issue in series. There were no preferred shares issued at June 30, 2026 (none at December 31, 2025). Property Options During the six-month period ended June 30, 2026, the company issued 1,450,000 common shares at $0.05 to satisfy terms of various property option and purchase agreements. Private Placements During the six-month period ended June 30, 2026, the company issued 16,666,667 units at $0.06 per unit for gross proceeds of $1,000,000. Each unit consisted of one common share and one common share purchase warrant.
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 10 6. SHARE CAPITAL (continued) Share Issue Costs During the six-month period ended June 30, 2026, a total of $10,523 of share issue expenses were incurred. Warrants The following continuity summarizes the Company’s outstanding warrants over the period covered by these Financial Statements: Weighted Average Quantity Exercise Price Balance, December 31, 2024 21,683,083 $ 0.12 Issued 34,973,445 0.11 Exercised (750,000) 0.13 Expired (13,710,775) 0.13 Balance, December 31, 2025 42,195,753 0.12 Issued 16,666,667 0.10 Expired (3,012,308) 0.10 Balance, June 30, 2026 55,850,112 $ 0.09 Additional information regarding warrants outstanding as at June 30, 2026: Issue Date Exercise Price Quantity Expiry Date November 22, 2024 $ 0.11 2,500,000 November 22, 2026 December 20, 2024 $ 0.11 1,710,000 December 20, 2026 January 15, 2025 $ 0.10 2,500,000 January 15, 2027 April 8, 2025 $ 0.10 5,625,000 April 8, 2027 April 8, 2025 $ 0.125 175,000 April 8, 2027 April 17, 2025 $ 0.10 1,200,000 April 17, 2027 April 17, 2025 $ 0.10 57,000 April 17, 2027 April 17, 2025 $ 0.11 2,100,000 April 17, 2027 April 17, 2025 $ 0.10 180,000 April 17, 2027 May 15, 2025 $ 0.10 7,500,000 May 15, 2027 October 28, 2025 $ 0.075 4,545,455 October 28, 2026 October 28, 2025 $ 0.075 545,454 October 28, 2026 October 28, 2025 $ 0.075 6,700,000 October 28, 2028 October 28, 2025 $ 0.075 300,000 October 28, 2028 November 17, 2025 $ 0.075 2,772,800 November 17, 2026 November 17, 2025 $ 0.075 272,738 November 17, 2026 November 17, 2025 $ 0.075 500,000 November 17, 2028 March 5, 2026 $ 0.10 16,666,667 March 5, 2029 55,850,112
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 11 6. SHARE CAPITAL (continued) Stock options The Company has established a Stock Option Plan (the "Plan") to develop the interest and incentive of eligible employees, directors and consultants in the Company's growth and development. The aggregate number of share options which may be issued and outstanding at any time under this plan shall not exceed 10% of the total number of issued and outstanding shares of the Company unless the Company receives the permission of the TSX-V and its shareholders. As at June 30, 2026, 15,344,227 common share options were authorized to be issued and outstanding under the Plan (December 31, 2025 – 13,532,560). Stock options are granted with an exercise price equal to the underlying common stock’s fair value at the time of grant. Once vested, options may be exercised during a period not exceeding five years from the date of grant, subject to earlier termination if the option holder ceases to be a director, officer, employee, or consultant of the Company. The following summarizes the Company’s outstanding option obligations over the period covered by these Financial Statements: Quantity Weighted Average Exercise Price Balance, December 31, 2024 6,310,000 $ 0.12 Issued 2,430,000 0.12 Expired (30,000) 0.50 Balance, December 31, 2025 8,710,000 0.12 -no activity- - - Balance, June 30, 2026 8,710,000 $ 0.12 At June 30, 2026, the remaining pool of options available for grant was 6,634,227 (December 31, 2025 – 4,822,560). Additional information regarding options outstanding as at June 30, 2026: Issue Date Exercise Price Quantity Expiry Date Exercisable August 8, 2023 $ 0.12 6,280,000 August 8, 2028 6,280,000 June 6, 2025 $ 0.12 2,430,000 June 6, 2030 2,430,000 8,710,000 8,710,000 Share-based compensation The Black-Scholes option pricing model, used by the Company to calculate option values, was developed to estimate the fair value of freely tradable, fully transferable options without vesting restrictions, which significantly differ from the Company’s option awards.
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 12 6. SHARE CAPITAL (continued) These models require subjective assumptions, including future stock price volatility and expected time until exercise, which affect calculated values, summarized in the table below. Assumptions 2026 2025 Lifetime N/A 5 years Interest Rate N/A 3.0 Annual Volatility N/A 91% Dividends N/A none During the six-month period ended June 30, 2026, the Company incurred no expense relating to options granted and vested during the period (2025 – $166,455). 7. LOSS PER SHARE Basic loss per common share is calculated using the weighted average number of common shares outstanding during the year. As the Company has recorded a loss in each of the periods presented, the following table presents the securities excluded from the loss per share computation for the six-month periods ended June 30: 2026 2025 Stock options 8,710,000 8,710,000 Stock purchase warrants 55,850,112 40,757,775 64,560,112 49,467,775 8. NATURE OF EXPENSES General and administrative expenses comprised the following during the six-month periods ended June 30:
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 13 9. RELATED PARTY TRANSACTIONS Key Management Personnel 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 consist of executive and non-executive members of the Board of Directors and corporate officers, including the Company’s Chief Executive Officer and Chief Financial Officer. The following table presents the compensation earned by key members of management during the six-month periods ended June 30, noted below: 2026 2025 Salaries $ 123,512 $ 122,392 Benefits 7,338 4,320 Share-based compensation - 89,050 $ 130,850 $ 215,762 During the six-month period ended June 30, 2026, the Company incurred $81,911 of professional fees to a firm at which the Company’s corporate secretary is a partner (2025 - $29,029). As at June 30, 2026, the Company did not have a balance owing to that firm. As at June 30, 2026, $262,868 of amounts payable to related parties is included in accounts payable and accrued liabilities (December 31, 2025 - $282,302). 10. GOVERNMENT ASSISTANCE During the six-month period ended June 30, 2026, the Company received no government resource tax credits (2025 - $691). 11. SEGMENT INFORMATION The Company has one operating segment involved in the exploration of resource properties. All the Company's exploration activities were in Canada. 12. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Market risk Market risk is the risk that changes in market prices, such as equity prices, interest rates and foreign exchange rates will affect the Company’s income (loss) or the value of its financial instruments.
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 14 12. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Interest rate risk The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary assets and liabilities. Foreign exchange risk The Company is not exposed to significant foreign exchange risk due to the low volume of foreign currency transactions. Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s unbilled receivables. a) Concentration of credit risk Counterparties expose the Company to credit-related losses in the event of non-performance. By dealing with only creditworthy counterparties, the Company’s credit exposure is minimized. There were no amounts due to the Company from non-governmental counterparties at June 30, 2026. b) Credit risk exposure The carrying amounts of the cash, and amounts receivable represent the maximum exposure to credit risk. The maximum exposure to credit risk at June 30, 2026, was $775,886 (December 31, 2025 - $909,928). The cash is held by the Company’s banks, two of the large Canadian chartered banks. Since the inception of the Company, no losses have been suffered in relation to cash held in the bank. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to manage liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet liabilities when due. As at June 30, 2026, the Company had a cash balance of $689,884. To date, the Company has incurred significant operating losses. The Company’s ability to continue as a going concern is dependent on its ability to generate sufficient capital through either revenues or through further financings. The Company is exposed to liquidity risk.
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Notes to the Condensed Interim Consolidated Financial Statements For the three and six-month periods ended June 30, 2026, and 2025 (unaudited and expressed in Canadian Dollars) 15 12. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Fair values a) The fair value of amounts receivable, accounts payable and accrued liabilities and lease liability is approximately equal to their carrying value due to their short terms to maturity. b) Fair value hierarchy Financial instruments recorded at fair value on the Consolidated Statement of Financial Position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 - valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3 - valuation techniques using inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value. The fair value of the investment in shares is determined based on recent market transactions for similar instruments issued by that company. Cash and the investment in shares are level 1 instruments. 13. CAPITAL MANAGEMENT The Company aims to maintain a strong capital base to maintain investor, creditor and market confidence, to fund future exploration and maintain the ability to continue as a going concern. Capital is defined as the Company’s shareholders’ equity. The Company does not have any long-term debt and the Company does not intend to assume any until any given development project warrants it. The Board of Directors does not establish quantitative capital criteria for management; but rather promotes the use of periodic equity financing events as the primary method of funding administrative operations and exploration and development. Other methods open to management to fund exploration include extending joint venture or earn-in opportunities to other parties relating to specific properties. There were no changes in the Company’s approach to capital management during the year. The Company is not subject to externally imposed capital requirements.