Auriginal Mining Corp. — Interim / Quarterly Report 2024

Nov 29, 2024

Kintavar Exploration Inc.

Unaudited Condensed Interim Consolidated Financial Statements

Three and nine months ended September 30, 2024

The attached financial statements have been prepared by Management of Kintavar Exploration Inc. and have not been reviewed by the auditors.

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Kintavar Exploration Inc.

Consolidated Statements of Financial Position

(In Canadian Dollars)

	Note	As at September 30, 2024	As at December 31, 2023
		Unaudited	Audited
		$	$
Assets
Current assets
Cash and cash equivalents	5	495,787	1,405,854
Receivables	8	942,957	820,740
Inventory		68,806	70,861
Investments	6	716,000	310,000
Investments in listed companies	7	47,650	51,625
Prepaid fees and other		44,976	55,888
Work in progress		12,295	-
Current assets		2,328,471	2,714,968
Non-current assets
Investment - non-current	6	210,369	200,000
Exploration and evaluation assets	8	2,104,779	2,201,212
Property and equipment	9	3,582,757	3,912,735
Non-current assets		5,897,905	6,313,947
Total assets		8,226,376	9,028,915
Liabilities
Current liabilities
Trade and other payables		254,142	338,633
Deferred revenues		45,752	14,988
Deferred grants		3,789	-
Long-term debt	12	91,698	87,523
Current liabilities		395,381	441,144
Non-current liabilities
Deferred tax liability		212,233	212,233
Long-term debt	12	462,094	531,043
Non-current liabilities		674,327	743,276
Total liabilities		1,069,708	1,184,420
Equity
Share capital		21,860,175	21,860,175
Warrants	13	32,475	32,475
Broker warrants	14	879	879
Stock options	15	335,030	439,730
Contributed Surplus		2,997,849	2,865,212
Deficit		(18,069,740)	(17,353,976)
Total equity		7,156,688	7,844,495
Total liabilities and equity		8,226,376	9,028,915

The accompanying notes are an integral part of these consolidated financial statements.

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Kintavar Exploration Inc.

Consolidated Statements of Loss and Comprehensive Loss

(Unaudited, in Canadian Dollars)

	Note	Three months ended September 30		Nine months ended September 30
		2024	2023	2024	2023
Sales		320,778	787,344	1,097,033	2,663,817
Exploration services		496,346	492,563	612,276	831,353
Income		817,124	1,279,907	1,709,309	3,495,170
Operating expenses
Exploration and evaluation, net of tax credits	16	48,164	104,118	140,618	465,691
Costs of sales		73,434	316,778	389,574	1,141,200
Costs of services		316,616	285,010	412,118	505,100
Salaries and benefits		240,894	278,323	755,658	916,025
Share-based compensation		26,130	6,038	27,937	35,316
Professional fees		600	525	51,130	63,860
Travel, conference and investor relations		4,598	2,828	24,170	43,850
General expenses and maintenance		64,321	68,659	182,822	291,760
Administration		23,904	32,853	74,279	103,686
Filing fees		7,942	5,690	24,639	20,720
Rent		2,775	2,775	8,325	8,325
Insurances and taxes		16,954	10,867	51,052	36,270
Depreciation of property and equipment		102,531	100,623	309,245	288,827
Operating loss		(111,838)	64,820	(742,357)	(425,460)
Other income (expenses)
Interest income		21,071	18,079	71,128	60,446
Finance costs		(20,257)	(17,603)	(53,974)	(56,756)
Gain on disposal of exploration and evaluation assets		-	2,250	-	2,250
Unrealized loss in fair value of investments in listed companies		(4,050)	(9,400)	(3,975)	(9,800)
Gain (loss) on disposal of property and equipment		8,414	(2,532)	13,414	(15,214)
		5,178	(9,206)	26,593	(19,074)
Net loss before income taxes		(106,660)	55,614	(715,764)	(444,534)
Deferred tax recovery		-	(11,462)	-	(171,610)
Net and comprehensive loss		(106,660)	67,076	(715,764)	(272,924)
Basic and diluted loss per share		(0.001)	(0.001)	(0.006)	(0.003)
Weighted average number of basic and diluted outstanding shares		128,557,128	128,557,128	128,557,128	128,557,128

The accompanying notes are an integral part of these consolidated financial statements.

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Kintavar Exploration Inc.

Consolidated Statements of Changes in Equity

(Unaudited, in Canadian Dollars)

	Note	Number of shares outstanding	Capital Stock $	Warrants $	Broker Warrants $	Stock Options $	Contributed surplus $	Deficit $	Total Equity $
Balance as at January 1, 2024		128,557,128	21,860,175	32,475	879	439,730	2,865,212	(17,353,976)	7,844,495
Loss and comprehensive loss for the period		-	-	-	-	-	-	(715,764)	(715,764)
Share-based compensation		-	-	-	-	27,937	-	-	27,937
Expired options		-	-	-	-	(132,637)	132,637	-	-
Balance as at September 30, 2024		128,557,128	21,860,175	32,475	879	335,030	2,997,849	(18,069,740)	7,156,668
	Note	Number of shares outstanding	Capital Stock $	Warrants $	Broker Warrants $	Stock Options $	Contributed surplus $	Deficit $	Total Equity $
Balance as at January 1, 2023		128,557,128	21,860,175	32,475	49,761	1,844,441	1,370,834	(16,704,731)	8,452,954
Loss and comprehensive loss for the period		-	-	-	-	-	-	(272,924)	(272,924)
Share-based compensation		-	-	-	-	35,316	-	-	35,316
Expired options		-	-	-	-	(1,431,739)	1,431,739	-	-
Balance as at September 30, 2023		128,557,128	21,860,175	32,475	49,761	448,018	2,802,573	(16,977,655)	8,215,347

The accompanying notes are an integral part of these consolidated financial statements.

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• 5 -

Kintavar Exploration Inc.

Consolidated Statements of Cash Flows

(Unaudited, in Canadian Dollars)

| | Note | Nine months ended
September 30 | |
| --- | --- | --- | --- |
| | | 2024 | 2023 |
| | | $ | $ |
| Operating activities | | | |
| Net loss for the period | | (715,764) | (272,924) |
| Adjustments for: | | | |
| Share-based compensation | | 27,937 | 35,316 |
| Accrued interest on investments | | (34,412) | (35,896) |
| Depreciation of property and equipment | | 309,245 | 288,827 |
| (Gain) loss on disposal of property and equipment | | (13,414) | 15,214 |
| Unrealized loss in fair value of an investment in listed companies | | 3,975 | 9,800 |
| Gain (loss) on disposal of exploration and evaluation assets | | - | 2,250 |
| Deferred income tax recovery | | - | (171,610) |
| Accretion of the long-term debt | | - | 3,928 |
| Change in non-cash working capital items | 17 | (137,071) | (656,390) |
| Cash flows used in operating activities | | (559,504) | (785,985) |
| Investing activities | | | |
| Variation in investments | | (416,369) | (8,789) |
| Additions to exploration and evaluation assets | | (23,567) | (17,713) |
| Option payment received on exploration and evaluation assets | | 120,000 | 100,000 |
| Acquisition of property and equipment | | (12,881) | (272,053) |
| Grant received for the acquisition of property and equipment | | 29,528 | - |
| Proceeds from disposal of property and equipment | | 17,500 | 6,000 |
| Cash flows used in investing activities | | (285,789) | (192,555) |
| Financing activities | | | |
| Repayment of long-term debt | | (64,774) | (200,430) |
| Cash flows used in financing activities | | (64,774) | (200,430) |
| Net change in cash and cash equivalents | | (910,067) | (1,178,970) |
| Cash and cash equivalents - beginning | | 1,405,854 | 1,555,039 |
| Cash and cash equivalents - ending | | 495,787 | 376,069 |

The accompanying notes are an integral part of these consolidated financial statements.

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

1. NATURE OF OPERATIONS

Kintavar Exploration Inc. (the "Corporation") was formed on March 24, 2017 upon the issuance of an amalgamation certificate under the Business Corporations Act (Quebec) and is engaged in the acquisition, exploration and evaluation of mining properties in Canada. The Corporation's class A common shares ("Shares") are listed on the TSX Venture Exchange (the "Exchange") under the symbol KTR. The address of the Corporation's registered office and principal place of business is 75, boul. de Mortagne, Boucherville, Quebec, Canada, J4B 6Y4. These unaudited condensed consolidated financial statements (the "Financial Statements") were approved by the Corporation's Board of Directors on November 28, 2024.

The Corporation has not yet determined whether its mineral properties contain ore reserves that are economically recoverable. The recoverability of the amounts shown for exploration and evaluation assets is dependent upon the ability of the Corporation to obtain necessary financing to pursue the exploration and evaluation on its mining properties.

The present unaudited financial statements have been prepared on the basis of accounting principles applicable to a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business as they come due. As at September 30, 2024, the Corporation reported a net loss of $715,764 ($272,924 as of September 30, 2023) and has an accumulated deficit of $18,069,740 ($17,353,976 as of December 31, 2023). As of September 30, 2024, the Corporation had a working capital of $1,933,090 ($2,273,824 as at December 31, 2023)

Management of the Corporation believes it has sufficient funds to pay its ongoing general and administrative expenses, to pursue its budgeted exploration and evaluation expenditures, and to meet its liabilities, obligations and existing commitments for the ensuing twelve (12) months as they fall due. While management has been successful in securing financing in the past, there can be no assurance that it will be able to do so in the future or that these sources of funding or initiatives will be available to the Corporation or that they will be available on terms which are acceptable to the Corporation.

2. BASIS OF PRESENTATION

These Financial Statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") applicable to the preparation of interim financial statements, including International Accounting Standard ("IAS") 34, Interim Financial Reporting. The Financial Statements should be read in conjunction with the annual financial statements for the year ended December 31, 2023, which have been prepared in accordance with IFRS. The accounting policies, methods of computation and presentation applied in these Financial Statements are consistent with those of the previous financial year, except as follows:

2.1 Comparative figures

Certain comparative figures have been reclassified in accordance with the current period's presentation. The following changes have been made to the September 30, 2023 financial statement comparative period.

The Corporation determined that the exploration services should be divided in two categories:

• Project management fees, which are earned on projects where the Corporation holds an interest in and revenues are recorded net of costs incurred.

• Exploration services, which are earned on projects where the Corporation holds no interest in and expenses are recorded as costs of services.

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

2. BASIS OF PRESENTATION (CONT'D)

The adjustments made to the three and nine months financial statements ended September 30, 2023 are as follow:

	As previously reported	Adjustments	As restated
Statement of loss and comprehensive loss	$	$	$
Three months ended September 30, 2023
Project management fees (income)	207,553	(207,553)	-
Exploration services (income)	-	492,563	492,563
Costs of services (expense)	-	285,010	285,010
Nine months ended September 30, 2023
Project management fees (income)	326,253	(326,253)	-
Exploration services (income)	-	831,353	831,353
Costs of services (expense)	-	505,100	505,100

2.2 Revenue Recognition

Revenues consist of revenue from project management fees, exploration services, interest income and sales made by the subsidiary including sales of outfitting packages including leisure and worker's accommodation packages as well as other outfitting revenues such as promotional material, gasoline, hunting and fishing licenses, food and beverages, etc.

i) Project Management fees

When the Corporation acts as operator on a property that it has optioned out, the expenses incurred for the work carried out on the property are charged back to the partner who owns the option on the property. A management fee is applied on top of the expenses recognized as the costs are incurred to carry out the work.

The project management fees are recorded as income in the statement of loss and comprehensive loss. The cost incurred are recorded in revenues against the management fees.

Revenues are measured at the fair value of the consideration received or to be received. Any payment received from customers before the work is performed are recorded as deferred revenues in the statement of financial position while costs incurred but not invoiced are recognized as work in progress.

ii) Exploration services

When the Corporation acts as operator on a property where it owns no interest in, all fees invoiced are recorded as exploration services.

The exploration services are recorded as income in the statement of loss and comprehensive loss. The costs incurred to complete the work required are recorded as costs of services.

Revenues are measured at the fair value of the consideration received or to be received. Any payment received from customers before the work is performed are recorded as deferred revenues in the statement of financial position while costs incurred but not invoiced are recognized as work in progress.

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

2. BASIS OF PRESENTATION (CONT'D)

iii) Sales of outfitting packages

Revenue from the sale of packages is recognized as services are rendered (i.e. per night consumed for leisure and worker's accommodation forfeits). Revenue from the sale of goods is recognized when control is transferred to the customer, which is realized upon delivery of the product or service.

Revenue is measured at the fair value of the consideration received or receivable.

iv) Interest income

Interest Income from a financial asset is recognized when it is probable that the economic benefits will flow to the Corporation and the amount of income can be measured reliably. Interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest rate applicable.

3. SEGMENT DISCLOSURES

The Corporation currently operates in two segments: the acquisition, exploration and evaluation of exploration properties and the operation of a hunting and fishing and outdoor outfitter. All of the Corporation's activities are conducted in Canada. Segment information for the periods carried forward is as follows:

	Exploration and evaluation	Outfitting (lodging, fishing and hunting)	Total
	$	$	$
As at September 30, 2024
Revenues – Q3	496,346	320,778	817,124
Revenues - YTD	612,276	1,097,033	1,709,309
Total assets	4,193,222	4,033,154	8,226,376
Total liabilities	65,174	1,004,534	1,069,708
As at September 30, 2023
Revenues – Q3	492,563	787,344	1,279,907
Revenues - YTD	831,353	2,663,817	3,495,170
Total assets	4,954,344	4,606,682	9,561,026
Total liabilities	171,185	1,174,494	1,345,679

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of the Financial Statements in accordance with IFRS requires the Corporation to make estimates and assumptions that affect the amounts reported as assets and liabilities, the presentation of contingent assets and liabilities at the date of the Financial Statements, and the amounts reported as income and expenses during the reporting period. The Corporation also makes estimates and assumptions for the future. The determination of estimates requires the exercise of judgment based on various assumptions as well as other factors such as historical experience and current and expected economic conditions. Actual results may differ from these estimates.

Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations about future events, that are believed to be reasonable in the circumstances.

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (CONT'D)

In preparing the Financial Statements, significant management judgments in applying the Corporation's accounting policies and significant sources of estimation uncertainty were the same as those applicable to the December 31, 2023 financial statements.

5. CASH AND CASH EQUIVALENTS

Cash and cash equivalents include available cash, mutual funds and short-term liquid investments with an original maturity of up to 3 months or redeemable at any time without penalty.

The short-term investments held as of September 30, 2024 and classified as cash equivalent include guaranteed investment certificates totaling $320,995 ($1,155,570 as at December 31, 2023), bearing interest at 4.5% and maturing from November 2024 to April 2025. Interest and principal are cashable at any time without penalties. It also includes an investment in a Canadian money market mutual fund worth $25,301 ($24,465 as at December 31, 2023).

The Corporation has the following credit facility:

Operating line of credit, which provides for advances of up to $50,000 ($50,000 as at December 31, 2023), bearing interest at the financial institution's prime rate plus 2.35% (effective rate of 8.80% as at September 30, 2024). As at September 30, 2024 the amount outstanding under this credit facility was $25,625 (nil as at December 31, 2023).

6. INVESTMENTS

Current

The current investments as at September 30, 2024 consist of three guaranteed investment certificates that are non-cashable prior to maturity. All three certificates totalize $716,000 in nominal value, bear interest with rates ranging from 5.30% to 5.70% and expire from November 2024 to January 2025.

Non-current

The non-current investment as at September 30, 2024 consists of one guaranteed investment certificate of $210,369 that is non cashable with a rate of 5.70% and expiring on November 3, 2025.

7. INVESTMENTS IN LISTED COMPANIES

The Corporation holds marketable securities. The investments are listed on the Exchange and valued at fair value based on quoted market prices.

• 9 -

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

7. INVESTMENTS IN LISTED COMPANIES (CONT'D)

The shares are listed on the Exchange. The total amount of the investments can be summarized as follows:

	As at September 30, 2024	As at December 31, 2023
	$	$
Gitennes Exploration Inc. – 75,000¹ common shares (75,000¹ as at December 31, 2023)	6,000	11,250
Northern Superior Resources Inc. – 85,000 common shares (85,000 as at December 31, 2023)	41,650	40 375
Investments in listed companies	47,650	51,625

¹) On July 25, 2024, Gitennes Exploration Inc. has consolidated its common shares on the basis of one (1) new post-consolidation common share for every ten (10) pre-consolidation common shares. The number of shares presented is on a post-consolidation basis.

8. RECEIVABLES

	As at September 30, 2024	As at December 31, 2023
	$	$
Accounts receivable	806,290	640,630
Tax credits and mining rights receivable	47,812	96,681
Government grants receivable	38,824	69,516
Others	50,031	13,913
Receivables	942,957	820,740

9. EXPLORATION AND EVALUATION ASSETS

Mining properties acquisition costs	As at Jan. 1,			Payment on options and other	As at September 30, 2024
	2024	Additions	Impairment
	$	$	$	$	$
Mitchi	849,192	13,779	-	(20,000)	842,971
Anik¹⁾	1,205,736	-	-	(100,000)	1,105,736
Rivière à l'aigle	99,114	-	-	-	99,114
Cousineau	6,545	-	-	-	6,545
New Mosher¹⁾	-	-	-	-	-
Wabash	36,740	2,114	-	-	38,854
Baie Johann Beetz	2,347	-	-	-	2,347
Veronik	-	770	-	-	770
Cazelet	-	2,275	-	-	2,275
Garemand	-	1,232	-	-	1,232
Others - Abitibi	-	1,448	-	-	1,448
Others - Gaspésie	-	1,444	-	-	1,444
Others - Grenville	-	308	-	-	308
Genex	1,538	197	-	-	1,735
	2,201,212	23,567	-	(120,000)	2,104,779

¹⁾ Option agreements are in effect on these properties.

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

1. EXPLORATION AND EVALUATION ASSETS (CONT'D)

Mining properties acquisition costs	As at Jan. 1, 2023	Additions	Impairment	Payment on options	As at Dec 31, 2023
	$	$	$	$	$
Mitchi	939,478	21,837	(112,123) 2)	-	849,192
Anik¹⁾	1,305,736	-	-	(100,000)	1,205,736
Rivière à l'aigle	99,114	-	-	-	99,114
Cousineau	5,535	1,010	-	-	6,545
New Mosher¹⁾	-	-	-	-	-
Wabash	36,740	-	-	-	36,740
Baie Johann Beetz	-	2,347	-	-	2,347
Genex	-	1,538	-	-	1,538
	2,386,603	26,732	(112,123)	(100,000)	2,201,212

¹⁾ Option agreements are in effect on these properties.
²⁾ Certain claims were dropped, and the Corporation partially impaired the properties.

1. PROPERTY AND EQUIPMENT

	Net book value January 1, 2024	Additions	Disposal	Depreciation	Net book value September 30, 2024
	$	$	$	$	$
Rolling stock	302,375	-	(4,086)	(86,217)	212,072
Outfitter trails	60,020	-	-	(2,888)	57,132
Electric line	252,956	-	-	(11,430)	241,526
Spawning grounds	60,020	-	-	(2,888)	57,132
Equipment	447,723	(16,647) 1	-	(49,318)	381,758
Buildings	2,789,641	-	-	(156,504)	2,633,137
	3,912,735	(16,647)	(4,086)	(309,245)	3,582,757

¹⁾ The Corporation applied and received a grant for an equipment that was bought during the previous fiscal year. This grant is recorded against the cost of the equipment.

	Net book value January 1, 2023	Additions	Disposal	Depreciation	Net book value December 31, 2023
	$	$	$	$	$
Rolling stock	212,642	218,030	(29,564)	(98,733)	302,375
Outfitter trails	63,871	-	-	(3,851)	60,020
Electric line	268,193	-	-	(15,237)	252,956
Spawning grounds	63,871	-	-	(3,851)	60,020
Equipment	416,259	93,337	-	(61,873)	447,723
Buildings	2,998,315	-	-	(208,674)	2,789,641
	4,023,151	311,367	(29,564)	(392,219)	3,912,735

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

10. PROPERTY AND EQUIPMENT (CONT'D)

	As at September 30, 2024			As at December 31, 2023
	Cost	Accumulated Depreciation	Net book value	Net book value
	$	$	$	$
Rolling stock	566,259	(354,187)	212,072	302,376
Outfitter trails	77,032	(19,900)	57,132	60,021
Electric line	304,741	(63,215)	241,526	252,954
Spawning grounds	77,032	(19,900)	57,132	60,021
Equipment	661,698	(279,940)	381,758	447,723
Buildings	3,499,701	(866,564)	2,633,137	2,789,640
	5,186,463	(1,603,706)	3,582,757	3,912,735

11. TRADE AND OTHER PAYABLES

	As at September 30, 2024	As at December 31, 2023
	$	$
Trade payables and accrued liabilities	179,615	188,522
Due to Geomega Resources Inc.	(69,254)	38,420
Accrued salaries	75,785	37,727
Accrued vacations	40,605	26,572
Government remittances	27,391	47,392
Trade and other payables	254,142	338,633

12. LONG-TERM DEBT

	As at September 30, 2024	As at December 31, 2023
	$	$
Term loan secured by a first mortgage on the present and future movable properties of the Corporation, on the current immovable properties and on the universality of the receivables as well as by a joint guarantee of the Corporation and its subsidiary. The loan bears interest at prime plus 0.80% (7.25% as of September 30, 2024). Interest and principal are payable monthly, maturing in September 2030.	197,357	222,361
Term loan secured by a first mortgage on the present and future movable properties of the Corporation, on the current immovable properties and on the universality of the receivables as well as by a joint guarantee of the Corporation and its subsidiary. The loan bears interest at prime plus 0.50% (9.05% as of September 30, 2024). Interest and principal are payable monthly, maturing in October 2033.	338,022	356,681

• 12 -

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

12. LONG-TERM DEBT (CONT'D)

Carried over from previous page	535,379	579,042
Term loan secured by a first mortgage on certain equipment at a rate of 7.49% and payable in installments of $1,079, maturing in November 2024.	2,136	11,437
Term loan engaged to finance rolling stock. This loan bears interest at 3.75%, is payable in monthly installments of $1,384 and matures in September 2025.	16,277	28,087
Current portion	(91,698)	(87,523)
Long-term debt - non-current portion	462,094	531,043

13. WARRANTS

Changes in the Corporation's warrants are as follows:

	Nine months ended September 30, 2024		Fiscal 2023
	Number of warrants	Weighted average exercise price	Number of warrants	Weighted average exercise price
		$		$
Balance, beginning	7,855,000	0.12	10,968,149	0.15
Expired	-	-	(3,113,149)	0.23
Balance, end	7,855,000	0.12	7,855,000	0.12

Warrants outstanding as at September 30, 2024 are as follows:

Number of warrants	Exercise price	Expiry date
	$
5,148,750	0.10	December 29, 2024
2,706,250	0.15	December 11, 2025
7,855,000

14. BROKER WARRANTS

Changes in the Corporation's broker warrants are as follows:

	Nine months ended September 30, 2024		Fiscal 2023
	Number of broker warrants	Weighted average exercise price	Number of broker warrants	Weighted average exercise price
		$		$
Balance, beginning	109,900	0.10	713,385	0.21
Expired	-	-	(603,485)	0.23
Balance, end	109,900	0.10	109,900	0.10

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

14. BROKER WARRANTS (CONT'D)

Broker warrants outstanding as at September 30, 2024 are as follows:

Number of broker options	Exercise price	Expiry date
	$
109,900	0.10	December 29, 2024
109,900

15. STOCK OPTIONS

Changes in stock options are as follows:

	Nine months ended September 30, 2024		Fiscal 2023
	Number of options	Weighted Average Exercise Price	Number of options	Weighted Average Exercise Price
		$		$
Balance, beginning	5,805,000	0.13	11,330,000	0.28
Issued	2,875,000	0.05	-	-
Forfeited	(150,000)	0.10	(18,750)	0.10
Expired	(1,332,500)	0.15	(5,506,250)	0.38
Balance, end	7,197,500	0.08	5,805,000	0.13
Balance, end exercisable	4,322,500	0.12	5,273,750	0.13

Stock options outstanding as at September 30, 2024 are as follows:

Number of options outstanding	Number of options exercisable	Exercise price	Expiry date
		$
1,207,500	1,207,500	0.10	June 29, 2025
100,000	100,000	0.09	December 15, 2025
1,202,500	1,202,500	0.17	June 10, 2026
1,812,500	1,812,500	0.10	June 09, 2027
2,875,000	-	0.05	June 26, 2029
7,197,500	4,322,500

On June 26, 2024, a new omnibus equity incentive plan was implemented to replace the stock option plan that was last reconducted on June 16, 2023. The omnibus plan offers a wider range of incentive awards, including stock options, restricted share units, performance share units, and deferred share units. The options issued under the previous plan are still eligible.

On June 26, 2024, the Corporation granted 2,875,000 stock options to employees, officers and directors, at a price of $0.05. The fair value of the options granted was estimated using the Black-Scholes model based on the following assumptions: risk-free interest rate of 3.513%, expected volatility of 98.10%, no dividend per share and expected term of the options of 3.75 years.

All options granted have the same conditions. From the date of grant, the options are earned in increments of 25% every 6 months, are valid for 5 years and were granted at a value equal to or greater than that of the market at the close preceding the grant, taking into account a floor price of $0.05.

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

15. STOCK OPTIONS

The expected duration of the stock options has been estimated by considering comparable situations for companies similar to the Corporation. The expected volatility is determined by calculating the historical volatility of the price of the Corporation's common shares preceding the date of issue and for a period corresponding to the expected life of the options.

16. EXPLORATION AND EVALUATION EXPENSES

	Three months ended		Nine months ended
	September 30,		September 30,
	2024	2023	2024	2023
	$	$	$	$
Salaries and benefits	40,356	68,340	162,563	273,612
Resources estimate	-	30,893	-	57,056
Preliminary economic assessment	-	21,245	-	21,245
Drilling	29,424	750	29,751	4,281
Analysis	1,262	17,127	10,205	47,039
Geophysics	-	2,500	-	2,500
Geochemistry	-	-	-	841
Metallurgy	-	-	(1,522)	16,976
Lodging and travel	(102)	2,148	4,320	7,723
Supplies	5,320	(7,685)	22,779	58,022
Taxes, permits and insurance	-	566	488	9,876
Exploration and evaluation expenses before tax credits	76,260	135,883	228,584	499,171
Tax credits	(28,096)	(31,765)	(97,966)	(33,480)
Exploration and evaluation expenses	48,164	104,118	140,618	465,691

17. ADDITIONAL INFORMATION RELATING TO THE STATEMENT OF CASH FLOWS

Changes in non-cash working capital items

	Nine months ended
	September 30
	2024	2023
	$	$
Receivables	(87,805)	(528,247)
Inventory	2,055	(2,350)
Prepaid expenses and others	10,912	(61,761)
Work in progress	(12,295)	-
Trade and other payables	(84,491)	21,768
Deferred revenues	3,789	(83,128)
Deferred grants	30,764	(2,672)
	(137,071)	(656,390)

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Kintavar Exploration Inc.

Notes to Financial Statements

(Unaudited, in Canadian Dollars)

18. FINANCIAL INSTRUMENTS AND RISKS

Fair value

Certain of the Corporation's accounting policies and disclosures require the determination of fair value. Fair value represents the amount at which a financial instrument could be exchanged between willing parties, based on current markets for instruments with the same risk, principal and remaining maturity. Fair value estimates are based on quoted market values and other valuation methods. Fair values have been determined for measurement and/or disclosure purposes based on the fair value hierarchy contained in the Corporation's financial instrument accounting policy. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. Financial instruments that are measured at fair value subsequent to initial recognition are grouped into a hierarchy based on the degree to which the fair value is observable as follows:

• Level 1 – Fair value measurements are quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2 – Fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Level 3 – Fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The investments in listed companies measured at fair value in the consolidated statement of financial position was classified in Level 1. Guaranteed investments certificates recorded in investments are classified as Level 2 as fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). For all other financial assets and liabilities, their net carrying amount is a reasonable approximation of fair value given their relatively short maturities.

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