E3 Lithium Ltd. — Interim / Quarterly Report 2026

May 22, 2026

The Company is refiling its previously filed unaudited interim financial statements solely to remove an inadvertent “DRAFT” watermark appearing in the document. No changes have been made to the financial information, notes, or any other disclosure contained in the originally filed version.

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E3 LITHIUM

Condensed Consolidated Interim Financial Statements (unaudited)

As at and for the three months ended March 31, 2026

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E3 LITHIUM

Condensed Consolidated Interim Statements of Financial Position (unaudited)

As at

(CAD$ thousands)	Notes	March 31, 2026	December 31, 2025
Assets
Current assets
Cash and cash equivalents		10,504	16,315
Accounts receivable	12, 13	5,567	3,802
Prepaid expense		259	287
		16,330	20,404
Exploration and evaluation assets	4	40,411	36,900
Property and equipment	5	205	235
Intangible assets	6	4,591	4,584
Right-of-use assets	7	562	613
Long-term receivables		611	611
Total assets		62,710	63,347

Liabilities and Shareholders' Equity

Current liabilities
Accounts payable and accrued liabilities	12	6,003	6,323
Deferred mineral license payment	15	1,800	-
Current portion of lease obligations	8	242	242
		8,045	6,565
Lease obligations	8	465	509
Decommissioning obligations	9	704	698
Total Liabilities		9,214	7,772
Share capital	10	96,627	95,651
Contributed surplus		16,427	16,695
Contributed capital		1,987	1,987
Accumulated other comprehensive loss		(75)	(75)
Deficit		(61,470)	(58,683)
Total shareholders' equity		53,496	55,575
Total liabilities and shareholders' equity		62,710	63,347

Commitments 15
See accompanying notes to the condensed consolidated interim financial statements.

Approved by the Board of Directors

Signed "Christopher Doornbos"
Chair

Signed "Tina Craft"
Audit Committee Chair

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E3 LITHIUM

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (unaudited)

For the three months ended March 31

(CAD$ thousands, except share and per share amounts)	Notes	2026	2025
Expenses
Exploration expenses		8	-
Business development and marketing		580	348
General and administrative		1,575	1,642
Share-based compensation	11	599	911
Finance expenses		20	20
Depreciation	5, 7	83	112
Total expenses		2,865	3,033
Other Income
Interest income		78	137
Total other income		78	137
Net loss and comprehensive loss		(2,787)	(2,896)
Per common share (dollars)
Net loss – basic and diluted		(0.03)	(0.04)
Weighted average number of common shares outstanding
Basic and diluted	11	87,084,527	75,307,374

See accompanying notes to the condensed consolidated interim financial statements.

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E3 LITHIUM

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (unaudited)

For the three months ended March 31

(CAD$ thousands, except share amounts)	Notes	Number of Common Shares	Share Capital	Contributed Surplus	Contributed Capital	Accumulated Other Comprehensive Income	Deficit	Total
January 1, 2025		75,269,397	83,492	17,810	1,987	(75)	(52,486)	50,728
Net loss and comprehensive loss		-	-	-	-	-	(2,896)	(2,896)
Release of restricted share units	10, 11	190,000	300	(300)	-	-	-	-
Repurchase of warrants	11	-	-	(4,055)	-	-	-	(4,055)
Share-based compensation	11	-	-	911	-	-	-	911
March 31, 2025		75,459,397	83,792	14,366	1,987	(75)	(55,382)	44,688
January 1, 2026		86,855,834	95,651	16,695	1,987	(75)	(58,683)	55,575
Net loss and comprehensive loss		-	-	-	-	-	(2,787)	(2,787)
Share issuance costs		-	(14)	-	-	-	-	(14)
Exercise of options and warrants	11	151,750	394	(271)	-	-	-	123
Release of restricted share units	11	457,000	447	(447)	-	-	-	-
Release of performance share units	11	183,480	149	(149)	-	-	-	-
Share-based compensation	11	-	-	599	-	-	-	599
March 31, 2026		87,648,064	96,627	16,427	1,987	(75)	(61,470)	53,496

See accompanying notes to the condensed consolidated interim financial statements.

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E3 LITHIUM

Condensed Consolidated Interim Statements of Cash Flows (unaudited)

For the three months ended March 31

(CAD$ thousands)	Notes	2026	2025
Cash Used in Operating Activities
Net loss and comprehensive loss		(2,787)	(2,896)
Non-cash items:
Share-based compensation	11	599	911
Depreciation	5, 7	83	112
Interest expense on lease obligations	8	14	17
Accretion	9	6	3
Change in non-cash working capital	16	(1,585)	391
Cash flow used in operating activities		(3,670)	(1,462)

Cash Used in Investing Activities

Exploration and evaluation asset expenditures	4	(5,972)	(1,715)
Government grants	4, 13	150	40
Property and equipment expenditures	5	(2)	(3)
Intangible assets expenditures	6	(7)	-
Change in non-cash working capital	16	1,368	(1,512)
Cash used in investing activities		(4,463)	(3,190)

Cash from Financing Activities

Proceeds from share issuance, net of issuance costs		(14)	-
Proceeds from exercise of options	10, 11	123	-
Repurchase of warrants	11	-	(3,018)
Deferred mineral license payment	15	1,800	-
Government grants	4, 13	2,311	601
Repayment of lease obligations	8	(58)	(55)
Change in non-cash working capital	16	(1,840)	(202)
Cash from financing activities		2,322	(2,674)
Change in cash and cash equivalents	(5,811)	(7,326)
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Cash and cash equivalents – beginning of period	16,315	19,321
Cash and cash equivalents – end of period	10,504	11,995

See accompanying notes to the condensed consolidated interim financial statements.

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Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
(CAD$ thousands, except share amounts and where noted)

1. NATURE AND CONTINUANCE OF OPERATIONS

E3 Lithium Ltd. ("E3 Lithium" or the "Company") is a lithium resource company with a current focus on commercial development of lithium extraction from brines contained within in its mineral properties in Alberta. E3 Lithium's shares are listed on the TSX Venture Exchange, the OTCQX, and Frankfurt Stock Exchange under the symbols ETL, EEMMF, and OW3, respectively. On July 8, 2022, the Company effectively changed its name to E3 Lithium Ltd., previously known as E3 Metals Corp. The Company's head office and principal address is located at 1520, 300-5th Avenue SW, Calgary, AB, T2P 3C4.

As at March 31, 2026, the Company has not generated revenues from operations and has an accumulated deficit of $61.5 million (December 31, 2025 – $58.7 million) including a net loss of $2.8 million (March 31, 2025 – $2.9 million) as at and for the three months ended March 31, 2026. The Company's ability to continue as a going concern is dependent upon its ability to raise equity financing to progress its upcoming demonstration facility, feasibility study, and move towards a commercial lithium project. While the Company has sufficient working capital it does anticipate a need for additional capital to support the completion of its development and ongoing operating activities.

2. BASIS OF PRESENTATION

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 – Interim Financial Reporting. Certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with IFRS® Accounting Standards, as issued by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") in effect on January 1, 2026, have been omitted or condensed. These condensed consolidated interim financial statements should be read in conjunction with the Company's December 31, 2025, audited consolidated financial statements. These condensed consolidated interim financial statements were authorized for issue by the Board of Directors on May 21, 2026.

Basis of measurement

These condensed consolidated interim financial statements have been prepared on a historical cost basis, except for certain financial instruments that have been measured at fair value. All financial information is presented in the Company's functional currency, which is Canadian dollars.

Use of estimates and judgments

The preparation of these condensed consolidated interim financial statements requires that management make estimates, judgments, and assumptions based on available information at the date of the condensed consolidated interim financial statements. Actual results may differ from estimates as future confirming events occur. Material estimates and judgments used in the preparation of the condensed consolidated interim financial statements have been prepared using the same judgments, estimates, and assumptions as reported in the Company's December 31, 2025, audited consolidated financial statements.

3. SUMMARY OF MATERIAL ACCOUNTING POLICIES

New and amended standards adopted by the Company

The following IFRS amendments were adopted in 2026:

• Amendments to IFRS 9, Financial Instruments, and IFRS 7, Financial Instruments: Disclosures, clarifying treatment of financial assets which have contingencies connected to ESG features, and clarifying when to record payments made with electronic payment methods, respectively. These amendments did not have a material impact on the condensed consolidated interim financial statements.

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Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025

(CAD$ thousands, except share amounts and where noted)

Recent accounting pronouncements not yet adopted

The IASB has issued the following new standard and amendments that will become effective in future years:

• New standard IFRS 18, Presentation and Disclosure in Financial Statements, requiring a more structured approach to financial statement disclosure to allow for comparability across entities. This standard will take effect January 1, 2027.
• New standard, IFRS 19, Subsidiaries without Public Accountability: Disclosures, can be followed when a subsidiary does not have public accountability, and has a parent that produces consolidated accounts under IFRS standard. This standard will take effect January 1, 2027.

The Company is assessing the impacts of adopting these changes on its consolidated financial statements.

4. EXPLORATION AND EVALUATION ASSETS

Carrying Value
Balance, January 1, 2025	27,973
Additions	15,065
Disposals	(1,792)
Changes in decommissioning costs (note 9)	272
Government grant (note 13)	(4,618)
Balance, December 31, 2025	36,900
Additions	5,972
Government grant (note 13)	(2,461)
Balance, March 31, 2026	40,411

5. PROPERTY AND EQUIPMENT

Cost	Computer Equipment	Furniture and Fixtures	Software Licenses	Leasehold Improvement	Total
Balance, January 1, 2025	263	302	60	44	669
Additions	17	2	-	1	20
Balance, December 31, 2025	280	304	60	45	689
Additions	-	2	-	-	2
Balance, March 31, 2026	280	306	60	45	691
Accumulated Depreciation
---	---	---	---	---	---
Balance, January 1, 2025	(157)	(68)	(53)	(19)	(297)
Depreciation	(72)	(71)	(5)	(9)	(157)
Balance, December 31, 2025	(229)	(139)	(58)	(28)	(454)
Depreciation	(14)	(15)	-	(3)	(32)
Balance, March 31, 2026	(243)	(154)	(58)	(31)	(486)
Carrying Value
---	---	---	---	---	---
Balance, December 31, 2025	51	165	2	17	235
Balance, March 31, 2026	37	152	2	14	205

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Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025

(CAD$ thousands, except share amounts and where noted)

6. INTANGIBLE ASSETS

Carrying Value
Balance, January 1, 2025	4,552
Additions	32
Balance, December 31, 2025	4,584
Additions	7
Balance, March 31, 2026	4,591

The Company's intangible assets relate to its proprietary Direct Lithium Extraction ("DLE") technology.

7. RIGHT-OF-USE ASSETS

Cost
Balance, January 1, 2025	1,049
Balance, March 31, 2026	1,049
Accumulated Depreciation
Balance, January 1, 2025	(228)
Depreciation	(208)
Balance, December 31, 2025	(436)
Depreciation	(51)
Balance, March 31, 2026	(487)
Carrying Value
Balance, December 31, 2025	613
Balance, March 31, 2026	562

8. LEASE OBLIGATIONS

Carrying Value
Balance, January 1, 2025	916
Interest	65
Repayments	(230)
Balance, December 31, 2025	751
Interest	14
Repayments	(58)
Balance, March 31, 2026	707

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Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025

(CAD$ thousands, except share amounts and where noted)

Carrying Value
Future minimum lease payments	798
Discount	(91)
Balance, March 31, 2026	707
Current portion of lease obligations	242
Lease obligations	465
Balance, March 31, 2026	707

The Company's leases at March 31, 2026, relate to vehicle leases, corporate head office, and the research lab facility. A discount rate between 4.99% and 8.00% was used to determine the present value of the lease obligations.

9. DECOMMISSIONING OBLIGATIONS

Carrying value
Balance, January 1, 2025	411
Additions	266
Additions – rate change	(34)
Additions – estimate change	40
Accretion	15
Balance, December 31, 2025	698
Accretion	6
Balance, March 31, 2026	704
Expected to be incurred beyond one year	704

Decommissioning obligations as at March 31, 2026, were determined using a risk-free rate between 3.23% and 3.85% (December 31, 2025 – between 3.23% and 3.83%) and inflation rate of 2.00% (December 31, 2025 – 2.00%). The undiscounted and inflated total future decommissioning obligations were estimated to be approximately $1.5 million with abandonment and reclamation costs expected to be incurred in the next 3 to 50 years.

10. SHARE CAPITAL

Authorized Share Capital

Unlimited common shares with no par value.

Number of Shares	March 31, 2026	December 31, 2025
Balance, beginning of period	86,855,834	75,269,397
Share issuance	-	11,150,000
Exercise of stock options	151,750	203,437
Release of restricted share units	457,000	233,000
Release of performance share units	183,480	-
Balance, end of period	87,648,064	86,855,834

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Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
(CAD$ thousands, except share amounts and where noted)

2026

During the three months ended March 31, 2026, the Company issued 0.2 million common shares from the exercise of stock options with an exercise price of $0.81, 0.5 million common shares through the release of restricted share units with a release price of $1.17, and 0.2 million common shares through the release of performance share units with a release price of $1.18. Total proceeds received were $0.1 million year to date.

2025

During the year ended December 31, 2025, the Company issued 0.2 million common shares through the release of restricted share units with a release price of $0.84, and 0.2 million common shares from the exercise of stock options with an exercise price of $0.81. Total proceeds received were $0.2 million.

In October 2025, the Company closed an equity offering (the "October offering") for gross proceeds of $13.4 million, including a partial over-allotment for additional proceeds of $1.3 million. Share issuance costs in relation to the October Offering were $1.2 million comprised of cash commissions and closing costs. Under the October Offering, the Company issued 11.2 million common shares and 5.8 million warrants (note 11). Each warrant entitles the holder to acquire one additional common share at an exercise price of $1.50 until the expiry date of October 14, 2028. Utilizing the residual value method, the fair value of common shares was recorded at $11.2 million, and the warrants were recorded at $1.0 million, respectively, net of issuance costs.

1. SHARE-BASED COMPENSATION

Warrants

The following table summarizes the change in warrants:

	Warrant (units)	Weighted Average Exercise Price ($)
Balance, January 1, 2025	3,752,416	0.32
Warrant issuance	5,836,250	0.26
Warrant repurchase^{1}	(3,413,979)	-
Forfeited/expired	(338,437)	3.50
Balance, December 31, 2025	5,836,250	0.26
Balance, March 31, 2026	5,836,250	0.26

(1) In 2022, the Company received a prepayment of $6.4 million from Imperial Oil Limited ("IOL") for warrants issued at an exercise price of $1.86 per warrant; the warrants could be exercised at no further cost to IOL. In 2025, these warrants were repurchased from IOL and cancelled by the Company.

In the prior year, on February 28, 2025, the Company and IOL entered into a Project Completion Agreement to finalize the rights and lease agreements for the freehold mineral tenure held by IOL for the Company's use in its Clearwater Project. The strategic agreement provided a mineral lease for 110 sections of the IOL freehold interest in the Clearwater Project Area with a primary term and renewable 10-year term on the mineral title. The Project Completion Agreement included the cancellation of 3,413,979 warrants granted to IOL upon the payment of $4.2 million, which was paid over the first three quarters of 2025.

Incentive Securities

The shareholders of the Company previously approved a stock option plan (the "Plan") pursuant to which options can be granted to the Company's directors, officers, employees, and other contractors to purchase the Company's common shares. The Company has since implemented the Omnibus Equity Incentive Plan (the "Omnibus Plan"), which provides flexibility to the Company to grant equity-based incentive awards in the form of Options, restricted share units ("RSUs"), performance share units ("PSUs"), and deferred share

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Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025

(CAD$ thousands, except share amounts and where noted)

units (“DSUs”, and together with Options, RSUs, and PSUs, “Awards”). The Omnibus Plan is the Company’s only equity compensation plan.

The Company follows the policies of the Toronto Stock Exchange where the number of common shares issued through the options granted under the Plan may not exceed 11,290,409 of the issued and outstanding common shares of the Company at the date of granting of options. Each option agreement with the grantee sets forth, among other things, the number of options granted, the exercise price, and the vesting conditions of the options.

Stock Options

The following table summarizes the change in stock options:

	Stock Options	Weighted Average Exercise Price ($)
Balance, January 1, 2025	6,761,750	2.05
Granted	2,091,000	0.84
Exercised	(203,437)	0.81
Forfeited/expired	(1,621,560)	1.91
Balance, December 31, 2025	7,027,753	1.50
Granted	50,000	1.18
Exercised	(151,750)	0.81
Forfeited/expired	(100,000)	1.47
Balance, March 31, 2026	6,826,003	1.51

The weighted average life of options outstanding at March 31, 2026, is 2.5 years (December 31, 2025 – 2.7 years).

The fair value of options granted was estimated using the Black-Scholes Option Pricing Model based on the date of grant and the following assumptions:

	Three months ended March 31, 2026	Year ended December 31, 2025
Risk-free interest rate	2.93%	2.6% to 2.9%
Expected stock price volatility	74%	71% to 89%
Expected life	Five years	Two to five years
Fair value per option granted	$0.73	$0.39 to $0.72

During the three months ended March 31, 2026, the Company incurred $0.3 million (March 31, 2025 - $0.8 million) in share-based compensation expense related to stock options.

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Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025

(CAD$ thousands, except share amounts and where noted)

Stock options outstanding and exercisable as at March 31, 2026:

Exercise price ($)	Weighted average exercise price	Weighted average remaining life (years)	Outstanding
$0.00 - $1.00	$0.83	3.2	2,666,003
$1.01 - $2.00	$1.50	2.2	2,215,000
$2.01 - $3.00	$2.46	1.8	1,935,000
$3.01 - $5.00	$4.40	0.4	10,000
Outstanding, end of period	$1.51	2.5	6,826,003
Exercisable, end of period	$1.67	1.8	3,936,127

RSUs

The Company issues RSUs under the Omnibus Plan. The terms and conditions of RSU grants, including the quantity, type of award, award date, vesting conditions, applicable vesting periods and other terms and conditions with respect to the award, as determined by the Board, will be set out in participant RSU agreements, as applicable. RSUs shall be settled by the issuance of Common Shares, a cash payment or any combination thereof, to be determined at the discretion of the Board at the time of settlement. The following table summarizes the change in RSUs:

	Restricted Share Units	Weighted Average Fair Value per Award ($)
Balance January 1, 2025	422,000	1.54
Granted	648,000	0.82
Released	(233,000)	1.48
Forfeited/expired	(32,000)	0.81
Balance, December 31, 2025	805,000	1.01
Granted	738,000	1.18
Released	(457,000)	0.98
Balance, March 31, 2026	1,086,000	1.14

The weighted average life of RSUs outstanding at March 31, 2026, is 1.2 years (December 31, 2025 – 1.9 years).

During the three months ended March 31, 2026, the Company incurred $0.2 million (March 31, 2025 – $0.1 million) in share-based compensation expenses related to RSUs.

PSUs

The Company issues PSUs under the Omnibus Plan. The terms and conditions of PSU grants, including the quantity, type of award, award date, vesting conditions, applicable vesting periods and other terms and conditions with respect to the award, as determined by the Board, will be set out in participant PSU agreements, as applicable. PSUs shall be settled by the issuance of Common Shares, a cash payment or any combination thereof, to be determined at the discretion of the Board at the time of settlement.

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Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 and 2025

(CAD$ thousands, except share amounts and where noted)

The following table summarizes the change in PSUs:

	Performance Share Units	Weighted Average Fair Value per Award ($)
Balance January 1, 2025	-	-
Granted	861,600	0.84
Released	(128,000)	0.81
Balance, December 31, 2025	733,600	0.84
Granted	427,000	1.18
Released	(183,480)	0.81
Balance, March 31, 2026	977,120	1.00

The weighted average life of PSUs outstanding at March 31, 2026, is 1.4 years (December 31, 2025 – 1.2).

During the three months ended March 31, 2026, the Company incurred $0.1 million (March 31, 2025 – $0.02 million) in share-based compensation expenses related to PSUs.

12. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Cash and cash equivalents, trade and other receivables, and trade and other payables are initially recognized at fair value and subsequently measured at amortized cost. The Company's financial derivative instruments are classified as financial assets or liabilities at fair value through profit or loss and are reported at fair value with changes in fair value recorded in net income or loss. The carrying value of the Company's financial instruments approximate their fair value due to the relatively short periods to maturity of the instruments.

Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will fail to discharge an obligation and cause the Company to incur a financial loss. The Company is exposed to credit risk with respect to its carrying balances of accounts receivable.

Accounts receivable outstanding as at March 31, 2026, relate to government grants (note 13) and refundable tax credits which have minimal credit risk.

Currency Risk

The Company's exposure to foreign currency risk is not considered to be material as it transacts primarily in the Canadian dollar.

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 objective is to maintain sufficient and readily available cash-on-hand in order to meet its liquidity requirements at any point in time.

As at March 31, 2026, the Company had positive working capital of $8.3 million (December 31, 2025 - $13.8 million).

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Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
(CAD$ thousands, except share amounts and where noted)

13. GOVERNMENT GRANTS

Completed

Alberta Innovates ("AI")

On April 6, 2022, the Company was awarded a $1.8 million grant to assist in the scale up and development of its field pilot plant. The Company has received the full amount of this grant as the final payment was received in 2024 upon completion of the field pilot plant.

Natural Resources Canada's ("NRCan") Critical Minerals Research, Development, and Demonstration ("CMRDD")

On March 7, 2023, the Company announced it was awarded $3.5 million in funding through NRCan's CMRDD program. The funds are non-dilutive and non-repayable. The funds were used to support the construction and operation of the Company's field pilot plant. The Company has submitted and been reimbursed for eligible expenses throughout the term of the agreement. The Company has received the full amount of this grant as the final payment was received in 2024 upon completion of the field pilot plant.

In Progress

Strategic Response Fund ("SRF")

On November 28, 2022, the Company was awarded a $27 million grant from the Government of Canada's Innovation, Science and Economic Development's SRF to support several aspects of the Company's resource and technology development up until commercial production. Eligible costs under the agreement are reimbursed at 33.94% to a maximum of $27 million.

Contingent on the Company's success and reaching commercial lithium production, the grant becomes repayable at 1.4 times the amount disbursed from the SRF grant. The repayment period begins the second-year post project completion at a rate of 1% of annual gross business revenues over a 20-year period. Currently, it is possible but not probable whether the Company will realize an outflow of benefits to settle the contingent obligation as the Company has not yet achieved commercial production. The Company has not recognized a provision at March 31, 2026 (December 31, 2025 – nil).

As at March 31, 2026, life-to-date claims under the SRF grant are $16.2 million (December 31, 2025 - $13.9 million) and the contingent obligation related to SRF is estimated to be $22.7 million (December 31, 2025 - $19.4 million). As at March 31, 2026, there is $4.7 million in accounts receivable related to SRF grants (December 31, 2025 - $3.0 million).

Emissions Reduction Alberta ("ERA")

On August 15, 2024, ERA announced a $5 million investment to support E3 Lithium's path to commercialization. The funds are non-dilutive and non-repayable and are reported on a milestone basis. The Company plans to use the funds towards its integrated Lithium Brine Demonstration Facility with the goal to produce lithium carbonate from brines within the Leduc reservoir in Alberta.

As at March 31, 2026, there have been no claims submitted to date.

Critical Minerals Infrastructure Fund ("CMIF")

On March 20, 2025, CMIF announced $4.4 million in non-repayable funding to support E3 Lithium's path to commercialization. The Company plans to use the funds to undertake preconstruction work on the necessary transportation and energy infrastructure to develop the Clearwater Project. This includes facilitating electrical connection and substation power studies, transportation assessments, and the associated engagement initiatives, which are key deliverables for supporting the Demonstration Facility and Feasibility Study.

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Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
(CAD$ thousands, except share amounts and where noted)

As at March 31, 2026, life-to-date claims under the CMIF grant are $0.6 million (December 31, 2025 - $0.4 million), and as at March 31, 2026, there is $0.5 million (December 31, 2025 - $0.4 million) in accounts receivable relates to CMIF grants.

Global Partnerships Initiative ("GPI")

On March 2, 2026, the Company received conditional approval for up to $36.5 million of non-repayable funding through the Government of Canada's GPI, to accelerate the development of its Clearwater Project. With the funding, the Company will accelerate and expand the scope of its Demonstration Facility and the Company's Front End Engineering Design.

As at March 31, 2026, there have been no claims submitted to date.

14. CAPITAL MANAGEMENT

The Company's objective when managing capital is to maintain a strong statement of financial position and sufficient liquidity to meet its short and long-term business objectives. As at March 31, 2026, the Company's capital structure is comprised of shareholders' equity of $53.5 million (December 31, 2025 - $55.5 million) and working capital (defined as current assets less current liabilities) of $8.3 million (December 31, 2025 - $13.8 million). Sources of capital for the Company include equity issuances and funding and grants from various government agencies. The Company's capital management objectives have not changed over the years presented. The Company is not exposed to any external capital requirements. The Company's objective is to maintain a strong structure and sufficient liquidity to meet its short and long-term business objectives. Sources of capital for the Company include equity issuances and funding and grants from various government agencies.

Credit Facility

In February 2026, the Company entered into a operating loan facility with a Canadian financial institution with borrowing capacity of $2 million primarily to support letter of credit issuance. The Facility may be drawn at either Prime or CORRA based rates to support general corporate purposes of the Company.

Prime loans, CORRA loans, or letters of credit, and is available for general corporate purposes of the Company.

Borrowings under the facility bear interest at Prime + 2.75% or CORRA + 2.75%. The facility is repayable on demand and is secured by a general security agreement over the Company's assets. In February 2026, the Company issued an irrevocable letter of credit for $0.8 million to support project development costs. At March 31, 2026, the Company had $0.8 million in outstanding letters of credit, reducing the amount of the facility available to be drawn.

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Notes to the Condensed Consolidated Interim Financial Statements
March 31, 2026 and 2025
(CAD$ thousands, except share amounts and where noted)

15. COMMITMENTS & CONTINGENCIES

Commitments

The following is a summary of the Company's estimated commitments as at March 31, 2026:

As at March 31,	2026	2027	2028	2029	2030	Thereafter	Total
Office leases^{1}	227	305	234	129	-	-	895
Mineral license fees	3,610	1,805	6,961	1,805	1,805	12,635	28,621
Freehold license fees	-	100	100	100	100	500	900
Power distribution fees	37	58	108	108	108	323	742
Total	3,874	2,268	7,403	2,142	2,013	13,458	31,158

1) Represents undiscounted estimated operating cost payments for office and lab leases.

In December 2022, amendments to the Metallic and Industrial Minerals Tenure regulation were approved by Cabinet and effective January 1, 2023. Under the new regulation, brine-hosted mineral rights are granted through new agreements: brine-hosted minerals license and brine-hosted minerals lease. Brine-hosted mineral licenses are available for a 5-year, non-renewable term. Holders of brine-hosted mineral licenses have exclusive rights to apply from brine-hosted mineral leases with 10-year primary terms and indefinite continuation.

During the quarter, Company received approval from the Government of Alberta for a one-year deferral of its annual mineral license rental payment, with interest accruing on the deferred amount. The amount has been classified as a financial liability at amortized cost.

16. SUPPLEMENTAL DISCLOSURES

The following table provides a detailed breakdown of changes in non-cash working capital:

Changes in Non-Cash Working Capital	Three months ended March 31, 2026	Three months ended March 31, 2025
Accounts receivable	(1,765)	(139)
Prepaid expenses and long-term receivables	28	(1,258)
Accounts payable and accrued liabilities	(320)	74
Total change in non-cash working capital	(2,057)	(1,323)
Operating activities	(1,585)	391
Investing activities	1,368	(1,512)
Financing activities	(1,840)	(202)
Total change in non-cash working capital	(2,057)	(1,323)