Cantex Mine Development Corp. — Interim / Quarterly Report 2025

Jun 25, 2025

CANTEX

Cantex Mine Development Corp.
Condensed Consolidated Interim Financial Statements

Unaudited

Expressed in Canadian dollars

April 30, 2025

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Cantex Mine Development Corp.

April 30, 2025

Table of contents

• Notice to Reader 1
• Condensed Consolidated Interim Statements of Financial Position 2
• Condensed Consolidated Interim Statements of Loss and Comprehensive Loss 3
• Condensed Consolidated Interim Statements of Changes in Shareholders' Equity 4
• Condensed Consolidated Interim Statements of Cash Flows 5
• Notes to the Condensed Consolidated Interim Financial Statements 6 - 21

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NOTICE TO READER

These condensed consolidated interim financial statements of Cantex Mine Development Corp. ("the Company") for the nine month period ended April 30, 2025 have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by International Financial Reporting Standards for a review of interim financial statements by an entity's auditor.

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Cantex Mine Development Corp.

Condensed Consolidated Interim Statements of Financial Position

(Unaudited - prepared by management)

(Stated in Canadian dollars)

As at	Note	April 30, 2025	July 31, 2024
Assets
Current assets
Cash	$	547,217	$ 3,436,640
Receivables and prepaids	3	37,619	245,022
		584,836	3,681,662
Non-current assets
Reclamation bonds	4(c)	59,139	59,126
Equipment	5	396,881	441,264
Right-of-use assets	6	121,795	304,487
	$	1,162,651	$ 4,486,539
Liabilities
Current liabilities
Trade and other payables	$	169,243	$ 633,845
Due to related parties	7	116,550	513,758
Current portion of lease obligations	6	77,171	175,129
Flow through premium liability	9(b)	49,100	32,549
		412,064	1,355,281
Non-current liabilities
Lease obligations	6	114,375	114,375
Asset retirement obligation	8	536,000	536,000
		1,062,439	2,005,656
Shareholders' equity
Share capital	9	95,153,038	94,514,124
Equity reserve	9	4,660,828	5,159,718
Deficit		(99,713,654)	(97,192,959)
		100,212	2,480,883
	$	1,162,651	$ 4,486,539

Nature and continuance of operations (Note 1)

Subsequent events (Note 9(c))

Commitments (Note 9(b))

Contingencies (Note 10)

Approved by the Board of Directors:

"Vernon Frolick"

Vernon Frolick

"Chad Ulansky"

Chad Ulansky

See accompanying notes to the condensed consolidated interim financial statements.

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Cantex Mine Development Corp.

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss

(Unaudited - Prepared by Management)

(Stated in Canadian dollars)

| | Note | Three month periods ended
April 30, | | Nine month periods ended
April 30, | |
| --- | --- | --- | --- | --- | --- |
| | | 2025 | 2024 | 2025 | 2024 |
| Expenses | | | | | |
| Accretion | 5,8 | $ 14,551 | $ 8,963 | $ 43,654 | $ 26,888 |
| Depreciation | 5,6 | 61,140 | 60,986 | 183,421 | 183,456 |
| Exploration expenditures | 4,7 | 240,366 | 394,816 | 2,523,137 | 2,470,433 |
| Office and administrative | 7 | 47,716 | 170,212 | 152,054 | 427,283 |
| Professional fees | | 2,488 | 23,229 | 35,134 | 41,700 |
| Stock-based compensation | 7,9(c) | 14,450 | 475 | 43,350 | 475 |
| Transfer agent and filing fees | | 30,822 | 27,037 | 54,519 | 61,700 |
| | | (411,533) | (685,718) | (3,035,269) | (3,211,935) |
| Other items | | | | | |
| Flow through premium recovery | 9(b) | 34,000 | 43,353 | 103,449 | 270,225 |
| Foreign exchange gain | | 8,888 | 6,123 | 21,349 | 22,585 |
| Interest income | | 6,083 | 54,015 | 48,436 | 88,952 |
| | | 48,971 | 103,491 | 173,234 | 381,762 |
| Loss and comprehensive loss | | $ (362,562) | $ (582,227) | $ (2,862,035) | $ (2,830,173) |
| Loss per common share, basic and diluted | | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.03) |
| Weighted average number of common shares outstanding, basic and diluted | | 131,018,149 | 115,042,813 | 128,981,047 | 104,651,343 |

See accompanying notes to the condensed consolidated interim financial statements.

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Cantex Mine Development Corp.

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity

(Unaudited - Prepared by Management)

(Stated in Canadian dollars)

	Note	Number of common shares	Share capital	Equity reserve	Deficit	Total
Balance, July 31, 2023		90,368,412	$ 87,239,598	$ 4,804,593	$(91,994,287)	$ 49,904
Shares issued for cash - private placement	9(b)	23,651,327	6,504,275	319,400	-	6,823,675
Shares issued for services rendered	9(b)	1,023,074	266,000	-	-	266,000
Share issuance costs	9(b)	-	(596,053)	124,800	-	(471,253)
Flow through premium	9(b)	-	(417,000)	-	-	(417,000)
Stock-based compensation	10(c)	-	-	475	-	475
Reserves transferred on expired warrants		-	104,000	(104,000)	-	-
Loss and comprehensive loss for the period		-	-	-	(2,830,173)	(2,830,173)
Balance, April 30, 2024		115,042,813	93,100,820	5,145,268	(94,824,460)	3,421,628
Shares issued for cash - private placement	9(b)	12,083,331	1,450,000	-	-	1,450,000
Share issuance costs	9(b)	-	(36,696)	-	-	(36,696)
Stock-based compensation	9(c)	-	-	14,450	-	14,450
Loss and comprehensive loss to year end		-	-	-	(2,368,499)	(2,368,499)
Balance, July 31, 2024		127,126,144	94,514,124	5,159,718	(97,192,959)	2,480,883
Shares issued for cash - private placement	9(b)	4,000,000	600,000	-	-	600,000
Share issuance costs	9(b)	-	(51,186)	9,200	-	(41,986)
Flow through premium	9(b)	-	(120,000)	-	-	(120,000)
Stock-based compensation	9(c)	-	-	43,350	-	43,350
Reserves transferred on expired and cancelled warrants		-	210,100	(210,100)	-	-
Reserves transferred on expired options		-	-	(341,340)	341,340	-
Loss and comprehensive loss for the period		-	-	-	(2,862,035)	(2,862,035)
Balance, April 30, 2025		131,126,144	$ 95,153,038	$ 4,660,828	$(99,713,654)	$ 100,212

Page 4

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Cantex Mine Development Corp.

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited - Prepared by Management)

(Stated in Canadian dollars)

| | Nine month periods ended
April 30, | |
| --- | --- | --- |
| | 2025 | 2024 |
| Operating activities | | |
| Loss for the period | $ (2,862,035) | $ (2,830,173) |
| Items not involving cash | | |
| Flow through premium recovery | (103,449) | (270,225) |
| Accretion | 43,654 | 26,888 |
| Depreciation | 183,421 | 183,456 |
| Stock-based compensation | 43,350 | 475 |
| Interest on lease obligations | 16,417 | 4,869 |
| Unrealized foreign exchange gain | (13) | (2,863) |
| Changes in operating assets and liabilities | | |
| Receivables and prepaids | 207,403 | (79,144) |
| Trade and other payables and due to related parties | (861,810) | (539,658) |
| | (3,333,062) | (3,506,375) |
| Investing activities | | |
| Purchase of equipment | - | (2,287) |
| | - | (2,287) |
| Financing activities | | |
| Issuance of common shares | 600,000 | 6,823,675 |
| Share issue costs | (41,986) | (205,253) |
| Lease liability for right-of-use assets | (114,375) | (114,375) |
| | 443,639 | 6,504,047 |
| Change in cash during the period | (2,889,423) | 2,995,385 |
| Cash, beginning of period | 3,436,640 | 787,323 |
| Cash, end of period | $ 547,217 | $ 3,782,708 |
| Supplemental disclosure: | | |
| Taxes paid | $ - | $ - |
| Interest paid | $ - | $ - |
| Transfer of reserves on expired options | $ 341,340 | $ - |
| Transfer of reserves on expired and cancelled warrants | $ 192,500 | $ - |
| Return of shares and warrants on cancellation of finders fees | $ 66,600 | $ - |
| Flow through premium liability | $ 120,000 | $ 57,000 |
| Finder's warrants issued as fees on private placement | $ 9,200 | $ 124,800 |
| Residual value of warrants | $ - | $ 319,400 |
| Shares issued as share issuance costs | $ - | $ 266,000 |

See accompanying notes to the condensed consolidated interim financial statements.

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Page 6

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

1. Nature and continuance of operations

Cantex Mine Development Corp. ("Cantex" or the "Company") is incorporated under the laws of the Province of Alberta and is considered to be in the exploration stage with respect to its mineral properties. To date, the Company has not generated significant revenues from operations and has not yet determined whether its mineral properties contain ore reserves that are economically recoverable. The Company's common shares are listed on the TSX Venture Exchange under the symbol "CD" and on the OTCQB Venture Market under the symbol "CTXDF".

The head office, principal address and registered and records office of the Company are located at 203-1634 Harvey Avenue, Kelowna, BC V1Y 6G2.

These condensed consolidated interim financial statements have been prepared by management on a going concern basis, which assumes the Company will continue in operations for the foreseeable future and be able to realize its assets and discharge its liabilities in the normal course of business. The ability of the Company to continue operations is dependent upon the existence of economically recoverable reserves, successful development of the Company's mineral properties (Note 4), completion of equity financings (Note 9), and generating profitable operations in the future. It is not possible to predict whether economically recoverable reserves exist, the Company's financing efforts will be successful, or if the Company will attain a profitable level of operations.

As at April 30, 2025, the Company has incurred cumulative losses of $99,713,654 (July 31, 2024 – $97,192,959) and has positive working capital of $172,772 (July 31, 2024 – $2,326,381). Additional financing will be required for the Company to continue operations. The above conditions may raise significant doubt regarding the Company's ability to continue as a going concern. Should the Company be unable to realize its assets and discharge its liabilities in the normal course of business, adjustments would be necessary in the carrying values of assets and liabilities.

2. Basis of presentation

(a) Statement of compliance

These condensed consolidated interim financial statements are unaudited and have been prepared in accordance with IAS 34, Interim Financial Reporting ("IAS 34") using accounting policies consistent with International Financial Reporting Standards ("IFRS"). The significant policies applied in these condensed consolidated interim financial statements are the same as those set out in Note 3 to the audited consolidated financial statements for the year ended July 31, 2024.

These condensed consolidated interim financial statements should be read in conjunction with the Company's 2024 annual consolidated financial statements. These interim financial statements do not include all the necessary annual disclosure in accordance with IFRS.

These condensed consolidated interim financial statements were approved for issue by the Audit Committee on June 16, 2025.

(b) Basis of presentation

These condensed consolidated interim financial statements include the accounts of the Company and its wholly-owned subsidiary, Cantex Gold Corp.

Name of Subsidiary	Country of Incorporation	Proportion of Ownership Interest
		April 30, 2025	July 31, 2024
Cantex Gold Corp.	USA	100%	100%

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Page 7

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

2. Basis of presentation (continued)

(c) Adoption of new and revised standards and interpretations

New Standards Adopted During the Year

IAS1 "Classification of Liabilities as Current or Non-current – Deferral of Effective Date" is an amendment to the standard that is applicable to fiscal years beginning on or after January 1, 2024. The amendments to IAS1 affects only the presentation of liabilities in the statement of financial position, and not the amount or timing of recognition of any asset, liability, income or expense, or the information that entities disclose about them. They:

• clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the "right" to defer settlement by at least one year and make explicit that only rights in place "at the end of the reporting period" should affect the classification of a liability
• clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and
• make clear that settlement refers to the transfers to the counterparty of cash, equity instruments, other assets or services.

The amendment was applied effective August 1, 2024 and did not have a material impact on the Company's consolidated financial statements.

New Standards Not Yet Adopted

IFRS 18 "Presentation and Disclosure in Financial Statements" is a standard to help ensure that financial statements provide relevant information that faithfully represents an entity's assets, liabilities, equity, income and expenses, which will be effective for fiscal years beginning on or after January 1, 2027. The standard includes discussion surrounding the following matters:

• General requirements for financial statements, including what will comprise the primary financial statements;
• Aggregation and disaggregation of information in the primary financial statements; and
• Specific requirements for the individual primary financial statements.

The Company is not yet able to determine the impact to the financial statements from the adoption of this standard.

IFRS 19 "Subsidiaries without Public Accountability: Disclosures" is a standard allowing subsidiaries to keep only one set of accounting records, which will be effective for fiscal years beginning on January 1, 2027. This will meet the needs of both the parent company and the users of their financial statements, and reduces disclosure requirements. Subsidiaries can apply IFRS 19 if they do not have public accountability and their parent company applies IFRS Accounting Standards in their consolidated financial statements. A subsidiary does not have public accountability if it does not have equities or debt listed on a stock exchange and does not hold assets in a fiduciary capacity for a broad group of outsiders. The Company is not yet able to determine the impact to the financial statements from the adoption of this standard.

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Page 8

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

3. Receivables and prepaids

	April 30,		July 31,
	2025		2024
GST receivables	$	11,245	$ 109,768
Prepaid expenses		26,374	135,254
	$	37,619	$ 245,022

4. Mineral property interests

The Company has not yet determined whether any of its mineral properties contain economically recoverable mineral reserves. Although the Company has taken steps to verify title to the mineral properties in which it, through its subsidiary, has an interest, in accordance with industry standards for the stage of exploration of such properties, those procedures do not guarantee the Company's title.

Title to mining properties involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many mining properties. The Company has diligently investigated rights of ownership of all of the mineral concessions in which it has an interest and, to the best of its knowledge, all agreements relating to such ownership rights are in good standing. However, this should not be construed as a guarantee of title. The concessions may be subject to prior claims, agreements or transfers and rights of ownership may be affected by undetected defects.

	Yukon (a)	Yemen (b)	Nevada (c)	Total
Cumulative expenditures to July 31, 2023	$ 46,491,026	$ 26,949,327	$ 3,376,191	$ 76,816,544
Consulting and engineering	431,726	22,704	1,751	456,181
Licenses and permits	35,585	-	11,165	46,750
Travel, field and other	1,158,337	80,263	1,862	1,240,462
Wages	602,903	124,137	-	727,040
Net expenditures during the period	2,228,551	227,104	14,778	2,470,433
Cumulative expenditures to April 30, 2024	48,719,577	27,176,431	3,390,969	79,286,977
Net expenditures to year end	2,130,532	61,669	94	2,192,295
Cumulative expenditures to July 31, 2024	50,850,109	27,238,100	3,391,063	81,479,272
Consulting and engineering	371,547	22,746	2,483	396,776
Licenses and permits	20,580	-	13,227	33,807
Travel, field and other	1,108,286	92,035	1,844	1,202,165
Wages	812,749	77,640	-	890,389
Net expenditures during the period	2,313,162	192,421	17,554	2,523,137
Cumulative expenditures to April 30, 2025	$53,163,271	$27,430,521	$3,408,617	$84,002,409

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Page 9

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

4. Mineral property interests (continued)

(a) Yukon program

As of April 30, 2025, the Company holds certain claim blocks, which are located northeast of Mayo, Yukon, Canada. These claims are 100% held by the Company and were acquired by staking.

(b) Yemen program

(i) Exploration license

During 1996, the Company was granted a prospecting permit in the Republic of Yemen. The Company has held an exploration license granting exclusive exploration rights and the right to obtain an exploration contract since 1999. Under the terms of the exploration contract, the Government of the Republic of Yemen has the right to offer to acquire, on commercial terms, an undivided interest of up to 49% in this exploration license. In this event, the Company's interest (and that of any partner) would be diluted proportionately.

In January 2012, the exploration license containing the Al Hariqah project was renewed under the new Yemeni mining code. The new license is valid for an initial four year period and can be renewed for two further four year periods.

In October 2014, the Company, in conjunction with Piedmont, declared a state of force majeure in regards to the Al Hariqah project. Due to the current political climate, notice was given to the Chairman of the Geological and Mineral Resource Board of Yemen that the Company no longer felt that the project area was secure. Operations at the Al Hariqah site have since ceased; the Company's current expenditures on the project relate to maintaining our Yemen office and employing office staff to continue to promote our interests in the country.

(ii) Agreement for Al Hariqah property

In December 2011, the Company entered into an agreement with Piedmont Lithium Limited ("Piedmont", formerly known as WCP Resources Ltd) wherein Piedmont can earn an interest in the Al Hariqah gold project by funding advanced exploration and mine development to commercial production. The staged earn-in agreement allows Piedmont to earn up to a 70% interest in the project after funding a minimum of US$30,000,000 over a seven year period.

Piedmont had two years from February 2012 to exercise an option to commence the earn-in to the project, after which they may earn an initial 40% interest in the project by expending US$5,000,000 within two years. As of May 31, 2014, Piedmont gave notice that they felt they had reached this 40% level; the Company does not agree with this statement. In October, 2014, Piedmont gave additional notice that they would no longer be funding the project. Allocation of ownership of the project has not yet been finalized. In May 2021, the Company received notice from Piedmont that it had assigned its interest in Al Hariqah to Lantern Resources Pty Ltd ("Lantern"), an affiliate and subsidiary of Piedmont. During the year ended July 31, 2023, the Company received notice that Lantern was selling its interest in Al Hariqah to a third party; negotiations to determine and settle the percentages of ownership for the project have not been completed to date.

(c) Nevada program

As at April 30, 2025, the Company had two gold exploration claims in the state of Nevada. Reclamation bonds of $59,139 (July 31, 2024 - $59,126) have been posted with the State of Nevada.

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Page 10

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

1. Equipment

	Field equipment	Computer equipment	Total
Cost
Balance July 31, 2023	$ 644,479	$ 10,480	$ 654,959
Additions	-	2,287	2,287
Adjustment to Asset Retirement Obligation (Note 9)	(26,888)	-	(26,888)
Balance April 30, 2024	617,591	12,767	630,358
Disposals	-	(7,913)	(7,913)
Adjustment to Asset Retirement Obligation (Note 9)	121,037	-	121,037
Balance July 31, 2024	738,628	4,854	743,482
Adjustment to Asset Retirement Obligation (Note 9)	(43,654)	-	(43,654)
Balance April 30, 2025	$ 694,974	$ 4,854	$ 699,828
Accumulated depreciation
Balance July 31, 2023	$ 251,247	$ 7,325	$ 258,572
Depreciation	44,808	1,801	46,609
Balance April 30, 2024	296,055	9,126	305,181
Depreciation	4,707	243	4,950
Disposals	-	(7,913)	(7,913)
Balance July 31, 2024	300,762	1,456	302,218
Depreciation	-	729	729
Balance April 30, 2025	$ 300,762	$ 2,185	$ 302,947
Carrying amounts:
As at July 31, 2023	$ 393,232	$ 3,155	$ 396,387
As at April 30, 2024	$ 321,536	$ 3,641	$ 325,177
As at July 31, 2024	$ 437,866	$ 3,398	$ 441,264
As at April 30, 2025	$ 394,212	$ 2,669	$ 396,881

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Page 11

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

6. Right-of-use assets and lease obligations

	Field equipment
Balance July 31, 2023	$ 167,257
Depreciation	(136,847)
Balance April 30, 2024	30,410
Additions	324,787
Depreciation	(50,710)
Balance July 31, 2024	304,487
Depreciation	(182,692)
Balance April 30, 2025	$ 121,795

In July 2022, the Company entered into a lease agreement with Kel-Ex Developments Ltd. ("Kel-Ex"), a related party (Note 8), for the lease of two drills and an excavator for a two-year term, which ended June 30, 2024. Payments over the term of the lease totaled $396,250 plus GST; monthly payments varied based on the timing of the drill program and whether the equipment is in use or not.

In July 2024, the Company renewed the lease with Kel-Ex for the drills and excavator. The lease is for a sixteen month term, ending October 1, 2025. Lease payments over the term of the lease total $350,625 plus GST; monthly payments vary based on the timing of when the equipment is in use.

Interest expense on lease obligations for the nine month period ended April 30, 2025 was $16,417 (April 30, 2024 – $4,869) and is included in exploration expenditures. There are no variable lease payments not included in the measurement of lease obligations.

	Lease obligation
Lease obligation, July 31, 2023	$ 154,477
Principal payments	(114,375)
Interest on lease obligation	4,869
Lease obligation, April 30, 2024	44,971
2024-2025 lease obligation	324,787
Principal payments	(83,750)
Interest on lease obligation	3,496
Lease obligation, July 31, 2024	289,504
Principal payments	(114,375)
Interest on lease obligation	16,417
Lease obligation, April 30, 2025	$ 191,546
Current portion of lease obligation	$ 77,171
Long-term portion of lease obligation	114,375
Lease obligation, April 30, 2025	$ 191,546

Total minimum future lease payments for the equipment over the next three years are: 2025 – $77,171; 2026 – $114,375; 2027 – $nil

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Page 12

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

7. Related party transactions and balances

During the three and nine month periods ended April 30, 2025 and 2024, the Company had related party transactions with the following individuals and companies related by way of common directors or shareholders:

• C.F. Mineral Research Ltd. ("CF Minerals") – a private company owned by the Cantex Chairman. CF Minerals provides heavy mineral geochemistry services to the Company, as well as storage of samples and supplies.
• Kel-Ex Development Ltd. ("Kel-Ex") – a private company owned by the Cantex Chairman. Kel-Ex provides administration, payroll and office services to the Company, as well as some shared exploration costs and equipment rentals.
• Element 29 Ventures Ltd. ("Element 29") – a private company owned by the Cantex CEO. Element 29 provides geological consulting services and equipment rentals to the Company.
• FourIrons Consulting ("FourIrons") – a private company owned by the Cantex CFO. FourIrons provides financial consulting services to the Company.
• Metalex Ventures Ltd. ("Metalex") – a publicly listed company with common directors and management. Metalex shares office space with Cantex and thus have certain shared expenditures which get re-billed on a cost-recovery basis.
• Dimac Consulting ("Dimac") – a private company owned by Kathrine MacDonald, a Director of the Company. Dimac provided administrative and consulting services to the Company.

The key management personnel of the Company are the Directors, Chief Executive Officer, and Chief Financial Officer.

(a) Related party expenses

The Company's related party expenses (net of recoveries) consist of the following amounts:

| | Three month periods
April 30, | | Nine month periods ended
April 30, | |
| --- | --- | --- | --- | --- |
| | 2025 | 2024 | 2025 | 2024 |
| Laboratory and mineralogical costs, including storage fees | $ 41,301 | $ 50,053 | $ 143,823 | $ 127,576 |
| Geological consulting fees | 36,975 | 125,893 | 133,579 | 263,976 |
| Consulting fees | 10,321 | 10,724 | 36,225 | 94,493 |
| Shared field expenditures* | 71,686 | 120,757 | 697,039 | 706,311 |
| Shared office and administrative costs | 15,491 | 7,892 | 31,768 | 27,204 |
| | $ 175,774 | $ 315,319 | $1,042,434 | $ 1,219,560 |

• Costs are included in Exploration expenditures in the Statement of profit and loss
  ** Costs are included in Office and administrative expenditures in the Statement of profit and loss

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Page 13

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

7. Related party transactions and balances (continued)

(b) Related party liabilities

The Company's related party expenses to the following related parties:

	Three month periods ended April 30,		Nine month periods ended April 30,
	2025	2024	2025	2024
C.F. Mineral Research Ltd.	$ 41,301	$ 50,053	$ 143,823	$ 127,576
Dimac Capital Corp.	-	-	-	52,000
Element 29 Ventures Ltd.	55,629	112,809	398,611	430,364
FourIrons Consulting	10,321	10,724	36,225	42,493
Kel-Ex Development Ltd.	57,119	128,647	420,121	522,605
Metalex Ventures Ltd.	11,404	13,086	43,654	44,522
	$ 175,774	$ 315,319	$1,042,434	$ 1,219,560

The liabilities of the Company include the following amounts due to related parties, which are due on demand and unsecured. Overdue amounts due to C.F. Mineral Research Ltd. may be charged a service charge of 1.5% per month; the remaining balances are non-interest bearing:

	April 30, 2025	July 31, 2024
C.F. Mineral Research Ltd.	$ 48,617	$ 74,095
Element 29 Ventures Ltd.	14,631	129,223
FourIrons Consulting	2,536	4,468
Kel-Ex Development Ltd.	47,546	293,851
Metalex Ventures Ltd.	3,220	12,121
	$ 116,550	$ 513,758

(c) Key management personnel compensation

	Three month periods ended April 30,		Nine month periods ended April 30,
	2025	2024	2025	2024
Consulting fees (1)	$ 41,679	$ 175,533	$ 135,100	$ 348,459
Stock based compensation (2)	13,500	400	40,300	400
	$ 55,179	$ 175,933	$ 175,400	$ 348,859

(1) Consulting fees includes amounts paid or accrued for geological consulting fees, financial consulting fees and administrative consulting fees. Geological consulting fees are paid to Element 29 for the services of the Chief Executive Officer; financial consulting fees are paid to FourIrons for the services of the Chief Financial Officer; administrative consulting fees have been paid to Dimac for services provided by a Director of the Company.

(2) Stock based compensation represents the vested portion of share options issued to management and directors based on the Black-Scholes option pricing model (note 9(c)).

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Page 14

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

8. Asset retirement obligation

The Company's sole asset retirement obligation is based on its ownership of a remote camp location in the Yukon and right-of-use assets in said location that will eventually need to be removed. Management estimated the cost to remove the camp structures and equipment, and the estimated time period during which these costs will be incurred in the future. These costs are expected to be incurred in approximately 5 years. The undiscounted amount of estimated cash flow required to settle the asset retirement obligation is $781,000 (July 31, 2024 - $781,000). The discounted amount of estimated cash flow required to settle the asset retirement obligation as at July 31, 2024 and April 30, 2025 using discounted at a rate of 10.5% (July 31, 2023 – 11.2%) is $536,000 (July 31, 2023 – $406,000).

	North Rackla camp and equipment
Asset retirement obligation, July 31, 2023 and April 30, 2024	$ 406,000
Accretion expense	35,851
Adjustment - Change in estimate (note 6)	94,149
Asset retirement obligation, July 31, 2024 and April 30, 2025	$ 536,000

9. Share capital and reserves

(a) Authorized share capital

The authorized share capital of the Company is an unlimited number of common shares without par value. All issued shares are fully paid.

(b) Issued share capital

i) April 2023 financing

The Company received proceeds of $1,268,500 from the issuance of 3,713,851 common shares, which were issued as a combination of units and FT Units. A flow through premium liability of $80,000 was recorded on these flow through funds; as at July 31, 2023, the Company had a remaining commitment of $27,245 in flow through funds and recovered $76,321 in flow through premiums in the statement of loss and comprehensive loss. The Company fulfilled this commitment during the year ended July 31, 2024 and recovered $3,679 in flow through premiums in the statement of loss and comprehensive loss.

ii) October to November 2023 financing

The Company received total proceeds of $3,823,485 from the issuance of 13,435,207 common shares, which were issued as a combination of units and FT Units; 5,176,923 units were issued at $0.26/unit, comprising of one non-flow through share and one half of a non-flow through warrant, and 8,258,284 FT Units were issued at $0.30/unit, comprising of one flow through share ("FT Shares") and one half of a non-flow through warrant. A total of 6,717,607 warrants were issued as part of this tranche of the private placement, with each whole warrant exercisable at $0.39/share, for a period of two years from issuance.

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Page 15

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

9. Share capital and reserves (continued)

(b) Issued share capital (continued)

ii) October to November 2023 financing (continued)

The Company paid cash commissions of $54,535 and incurred other share issuance costs of $56,006 in conjunction with this deal. In addition to cash commissions paid, the Company settled $154,000 in commissions through the issuance of 592,308 units, each unit comprised of one non-flow through common share and one-half of a non-flow through warrant. As part of the commission agreement, the Company issued 772,678 finder's warrants valued at $49,100 using the Black-Scholes option pricing model with the following factors:

	Tranche 1	Tranche 2
Expected life	2 years	2 years
Volatility	96.57%	80.84%
Risk free rate	4.89%	4.45%
Dividend rate	0%	0%
Expiration date	October 17, 2025	November 16, 2025

The finder's warrants have the same terms as those issued as part of the Units and FT Units. During the nine month period ended April 30, 2025, a portion of these finders fees were rescinded by the vendor and 134,616 units valued at $35,000 (134,616 shares and 67,308 warrants) and 134,616 finders warrants valued at $8,200 were returned to the Company's treasury.

A flow through premium liability of $57,000 was recorded on the flow through funds closed prior to October 31, 2023; as at October 31, 2023, the Company had fulfilled its commitment to spend these flow through funds, and recovered the full amount in the statement of loss and comprehensive loss for the three month period ended October 31, 2023. An additional flow through premium liability of $273,000 was recorded on these flow through funds for the tranches that closed subsequent to October 31, 2023; as at July 31, 2024, the Company had fulfilled its commitment to spend these flow through funds, and recovered the full amount in the statement of loss and comprehensive loss for the year ended July 31, 2024.

iii) December 2023 to January 2024 financing

Over the course of four tranches, the Company received total proceeds of $3,000,190 from the issuance of 10,216,120 common shares, which were issued as a combination of units and FT Units; 1,616,154 units were issued at $0.26/unit, comprising of one non-flow through share and one half of a non-flow through warrant, and 8,599,966 FT Units were issued at $0.30/unit, comprising of one flow through share and one half of a non-flow through warrant. A total of 5,108,063 warrants were issued, with each whole warrant exercisable at $0.39/share, for a period of two years from issuance. The Company incurred commissions of $177,100 in conjunction with this tranche; of this, $65,100 was settled with cash payments, and $112,000 was settled with the issuance of 430,766 units, which were comprised of one non-flow through common share and one half of a non-flow through warrant. The Company also incurred other share issuance costs of $29,613 in regard to this financing.

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Page 16

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

9. Share capital and reserves (continued)

(b) Issued share capital (continued)

iii) December 2023 to January 2024 financing (continued)

As part of the commission agreements, the Company issued 647,766 finder's warrants; the finder's warrants have the same terms as those issued as part of the units and FT Units and were valued at $75,700 using the Black-Scholes option pricing model with the following factors:

	Tranche 1	Tranche 2	Tranche 3	Tranche 4
Expected life	2 years	2 years	NA	2 years
Volatility	87.10%	83.89%	NA	98.46%
Risk free rate	4.05%	3.94%	NA	3.91%
Dividend rate	0%	0%	NA	0%
Expiration date	December 7, 2025	December 15, 2025	(No finders warrants for Tranche 3)	January 16, 2026

During the nine month period ended April 30, 2025, a portion of these finders fees were rescinded by the vendor and 53,846 units valued at $14,000 (53,846 shares and 26,923 warrants) and 26,923 finders warrants valued at $6,100 were returned to the Company's treasury.

A flow through premium liability of $87,000 was recorded on these flow through funds; as at July 31, 2024, the Company had a remaining commitment of $965,254 in flow through funds from this private placement and had recovered $54,451 in flow through premiums in the statement of loss and comprehensive loss. During the three month period ended October 31, 2024, the Company fulfilled this flow through commitment and recovered the remaining $32,549 flow through premium in the statement of loss and comprehensive loss.

iv) July 2024 financing

In July 2024, the Company received total proceeds of $1,450,000 from the issuance of 12,083,331 non-flow through common shares, which were issued at $0.12/share. The Company incurred commissions of $24,500 in conjunction with this financing, which was settle with cash. The Company also incurred other share issuance costs of $13,185 in regard to this financing, of which $12,195 were incurred in the year ended July 31, 2024 and $990 were incurred in the nine month period ended April 30, 2025.

iv) December 2024 financing

In December 2024, the Company closed a private placement of FT Shares and received total proceeds of $600,000 from the issuance of 4,000,000 FT Shares, which were issued at $0.15/FT share. The Company paid finders fees of $36,000 in conjunction with this private placement and issued 200,000 finder's warrants, with each whole warrant exercisable at $0.15/share, for a period of two years from issuance; the finder's warrants were valued at $9,200 using the Black-Scholes option pricing model using volatility of 80.48%, a risk free rate of 3.03% and dividend rate of 0%. The Company also incurred other share issuance costs of $5,986 in regard to this financing.

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Page 17

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

9. Share capital and reserves (continued)

(b) Issued share capital (continued)

iv) December 2024 financing (continue)

A flow through premium liability of $120,000 was recorded on these flow through funds; as at April 30, 2025, the Company had a remaining commitment of $245,567 in flow through funds from this private placement and had recovered $70,900 in flow through premiums in the statement of loss and comprehensive loss.

(c) Stock options and warrants

The Company, in accordance with its shareholder approved stock option plan, is authorized to grant options to directors, officers, employees and consultants, to acquire up to 7% of the aggregate issued and outstanding common shares (5% prior to the 2022 AGM). The exercise price of the options issued under the plan is determined by the Board of Directors at the time the options are granted. The options vest immediately upon grant, unless otherwise determined by the Board of Directors or Exchange regulations, and are exercisable for a period of up to ten years from the date of grant.

During the nine month period ended April 30, 2025, the Company recognized share based compensation of $43,350 (nine month period ended April 30, 2024 – $475) in profit and loss. This represents the vested portion of stock-based compensation granted in April 2024. Unlike previously issued options, the options granted on April 26, 2024 did not vest immediately; it was determined by the Board of Directors that these will vest pro-rata over a five year period and will become fully vested on April 26, 2029. They will expire on April 26, 2031. The weighted average fair value of the options granted was valued at $0.14 per option using the Black-Sholes option pricing model. The assumptions used in calculating fair values include an expected life of 7 years, volatility of 114.41%, risk free dividend rate of 3.81% and dividend rate of 0%.

Stock option and share purchase warrant transactions are summarized as follows:

	Stock Options		Warrants
	Number of options	Weighted Average Exercise Price	Number of warrants	Weighted Average Exercise Price
Outstanding, July 31, 2023	1,519,000	$ 2.76	26,358,436	$ 0.49
Granted/Issued	2,100,000	$ 0.50	13,751,351	$ 0.39
Expired	-	$ -	(20,956,104)	$ 0.46
Outstanding, April 30, 2024	3,619,000	$ 1.45	19,153,683	$ 0.43
Granted/Issued	-	$ -	6,300	$ 0.39
Outstanding, July 31, 2024	3,619,000	$ 1.51	19,159,983	$ 0.39
Granted/Issued	-	$ -	200,000	$ 0.15
Expired/Cancelled	(484,000)	$ 1.00	(5,685,025)	$ 0.38
Outstanding, April 30, 2025	3,135,000	$ 1.51	13,674,958	$ 0.39
Exercisable, April 30, 2025	1,508,452	$ 2.64	13,674,958	$ 0.39

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Page 18

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

9. Share capital and reserves (continued)

(c) Stock options and warrants (continued)

The following stock options and warrants were outstanding as at April 30, 2025:

	Number	Exercise price	Expiry date
Options	1,035,000	$ 3.60	June 4, 2025*
	2,100,000	$ 0.50	April 26, 2031**
	3,135,000

Expired unexercised subsequent to April 30, 2025.
*Of the 2,100,000 stock options issued in April 2024, 423,452 stock options have vested as at April 30, 2025.

Warrants	1,760,980	$ 0.39	October 17, 2025
	5,531,227	$ 0.39	November 16, 2025
	292,308	$ 0.39	November 23, 2025
	2,937,159	$ 0.39	December 7, 2025
	2,151,616	$ 0.39	December 15, 2025
	416,667	$ 0.39	December 29, 2025
	385,001	$ 0.39	January 12, 2026
	200,000	$ 0.15	December 24, 2026
	13,674,958

10. Contingencies

As at April 30, 2025, the Company has accrued a total of $159,500, relating to the Yemen branch tax audit of the years ended December 31, 2007 to 2012 ($79,069USD) and for the years ended December 31, 2013 to 2018 ($36,410USD).

A notice of assessment was received from the Government of Yemen in December 2014 of $432,845USD for the years ended December 31, 2007 to 2012, which the Company objected to on the basis that incorrect bases were being used in the calculations. In April 2022, the Company received Notice of Assessments from the Government of Yemen in the amount of $271,186USD for the years ended December 31, 2013 to 2018. For both tax audits, the Company provided further evidence to the Government of Yemen regarding the bases used to calculate the assessment and a lower amount was assessed for both. Due to the state of affairs in Yemen, there has been significant delays in finalizing these amounts. During the nine months ended April 30, 2025, the Tax Court of Yemen finalized the amount owed for the 2007 to 2012 years; final say on the 2013 to 2018 tax years has not been received to date. While the Company has not yet been able to finalize payment terms of the assessments, the reassessed amounts have been accrued as a liability.

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Page 19

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

10. Contingencies (continued)

In March 2023, the Company received a Notice of Assessment from the Government of Yemen in the amount of $12,565USD relating to the 2019 tax review. In August 2023, the Company received a Notice of Assessment from the Government of Yemen in the amount of $11,889USD relating to the 2020 tax review. As with the assessments received in 2014 and 2022 regarding the 2007 to 2018 tax audits, the Company prepared objections to the 2019 and 2020 assessments using the argument that the bases used to calculate the assessments were incorrect. Notices of objection were filed with the Government of Yemen in October 2022, March 2023 and August 2023, respectively. In November, 2024, the Company received the original assessments for the 2021 and 2022 tax years; objections to these assessments have been filed using the same bases as the other years noted.

As the Company believes that the Notice of Assessments will be reversed or significantly reduced after the objections are reviewed, the tax amounts for 2019 to date have not been accrued as the eventual amount of the taxes owed is not known as this time.

11. Segmented information

The Company manages its business as a single operating segment: mineral exploration. The Company operates in both foreign and domestic countries as follows:

	Nine month periods ended April 30,
	2025	2024
Loss
Canada	$ 2,652,060	$ 2,588,291
Yemen	192,421	227,104
United States of America	17,554	14,778
	$ 2,862,035	$ 2,830,173
	April 30,	July 31,
	2025	2024
Reclamation bonds
United States of America	$ 59,139	$ 59,126
Equipment
Canada	396,881	441,264
Right-of-use assets
Canada	121,795	304,487
	$ 577,815	$ 804,877

12. Capital management

The Company includes share capital (comprising of issued common shares), equity reserves and deficit, in its definition of capital.

The Company's objectives when managing capital is to maintain its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders.

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Page 20

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

12. Capital management (continued)

The Company's primary objective with respect to capital management is to ensure adequate liquid capital resources are in place to fund the exploration of its mineral properties while maintaining its ongoing operations. To secure the additional capital to pursue these plans, the Company may attempt to raise additional funds through the issuance of debt and or equity.

The Company expects its current capital resources will not be sufficient to complete its exploration plans through its current operating period and it will be required to raise additional funds through future equity issuances or secure other financing. To date, the Company has relied on advances from related parties to fund its operations and exploration activities and expects continued financial support through the next twelve months. The Company is currently not subject to externally imposed capital requirements. There were no changes to the Company's capital management during the year. The Company does not pay out dividends. The Company's investment policy is to invest its short-term excess cash in secure deposits in large Canadian financial institutions.

13. Financial instruments and risk management

As at April 30, 2025, the Company's financial instruments are cash, receivables, reclamation bonds, trade and other payables, lease obligations, and amounts due to related parties. Except for reclamation bonds, the amounts reflected in the statement of financial position are carrying amounts and approximate their fair values due to their short-term nature. The reclamation bonds amount reflected in the statement of financial position is its carrying amount, adjusted for foreign exchange rate, and approximated its fair value due to the fixed nature of the asset. These financial instruments are classified as follows:

• Cash and reclamation bonds are comprised of balances held at major financial institutions (in the case of reclamation bonds, these are held through the related government body) that are readily convertible into a known amount of cash and which are only subject to an insignificant risk of change in value, are classified as fair value through profit and loss, and are measured at amortized cost;
• Receivables are classified at amortized cost; and
• Trade and other payables, amounts due to related parties and lease obligations are classified at amortized cost.

The Company's financial instruments are exposed to certain financial risks, including currency, credit, liquidity and price risk.

Fair value is defined as the price what would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are described below:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 – Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.

Level 3 – Prices or valuation techniques that require inputs that are both significant to fair value measurement and unobservable (supported by little or no market activity).

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Page 21

Cantex Mine Development Corp.

Notes to the condensed consolidated interim financial statements

April 30, 2025

(Unaudited – Prepared by Management)

(Stated in Canadian dollars)

13. Financial instruments and risk management (continued)

Currency risk - The Company is exposed to the financial risk related to the fluctuation of foreign exchange rates. The Company operates in Yemen and as such, a portion of its expenses are incurred in the local currency and US dollars. A significant change in the currency exchange rates could have an effect on the Company's results of operations, financial position or cash flows. The Company has not hedged its exposure to currency fluctuations.

At April 30, 2025, the Company is exposed to currency risk relating to funds held in U.S. dollars and Yemen rials with a value of approximately $102,715 (July 31, 2024: $114,652). The impact of a 5% change in the exchange rates for these currencies to the Canadian dollar would not materially affect decisions of the Company's operations plans.

Credit risk - Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The majority of the Company's cash is held through a large Canadian financial institution with a high investment grade rating.

At April 30, 2025, the Company has no financial assets that are past due or impaired due to credit risk defaults. The Company's receivables consist mainly of GST receivable due from the Federal Government of Canada. The Company is subject to the risk that its partners will default on amounts owing for their portion of exploration expenditures.

Liquidity risk - Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due (Note 1). The Company manages its liquidity risk through the management of its capital structure and financial leverage as outlined in Note 12 to the condensed consolidated interim financial statements.

Trade and other payables are generally due within 30 days. No significant amounts are past due.

Amounts due to related parties have no fixed terms of repayment, are unsecured and are non-interest bearing, with the exception of invoices received from CF Minerals. This related party has implemented a policy whereby invoices are due upon receipt and past due accounts may be subject to interest of 1.5% per month. As at April 30, 2025, there was $23,904 in payables to CF Minerals that may be charged interest (July 31, 2023 – $34,930); these were paid subsequent to period end with no interest charged.

Price risk - The Company is exposed to price risk with respect to commodity prices which can impact the Company's ability to raise funding for its exploration and development programs. The Company closely monitors commodity prices to determine the appropriate course of action to be taken by the Company.