Imagine Lithium Inc. — Management Reports 2025

Dec 17, 2025

IMAGINE LITHIUM

Management Discussion and Analysis

For The Period Ended October 31, 2025

The following Management's Discussion and Analysis ("MD&A"), should be read in conjunction with the unaudited condensed interim consolidated financial statements for the three and nine months ended October 31, 2025 and 2024 and audited consolidated financial statements of Imagine Lithium Inc. ("Imagine" or the "Company") for the years ended January 31, 2025 and 2024 and related notes thereto, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). All amounts are stated in Canadian dollars unless otherwise indicated. Additional regulatory filings for the Company can be found on the SEDAR website at www.sedarplus.ca. The Company's website can be found at www.imaginelithium.com. This MD&A has been prepared as of December 16, 2025.

Forward-Looking Statements

In making and providing the forward-looking information included in this MD&A the Company's assumptions may include among other things: (i) assumptions about the price of metals; (ii) that there are no material delays in the optimization of operations at the exploration and evaluation assets; (iii) assumptions about operating costs and expenditures; (iv) assumptions about future production and recovery; (v) that there is no unanticipated fluctuation in foreign exchange rates; and (vi) that there is no material deterioration in general economic conditions. Although management believes that the assumptions made and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. By its nature, forward-looking information is based on assumptions and involves known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements, or results, to be materially different from future results, performance or achievements expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include among other things the following: (i) decreases in the price of base metals; (ii) the risk that the Company will continue to have negative operating cash flow; (iii) the risk that additional financing will not be obtained as and when required; (iv) material increases in operating costs; (v) adverse fluctuations in foreign exchange rates; and (vi) environmental risks and changes in environmental legislation.

This MD&A (See "Risks and Uncertainties") and the Company's annual information form contain information on risks, uncertainties and other factors relating to the forward-looking information. Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of the factors are beyond the Company's control. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to reissue or update forward looking information as a result of new information or events after the date of this MD&A except as may be required by law. All forward-looking information disclosed in this document is qualified by this cautionary statement.

Risks and Uncertainties

The Company is subject to a number of risks and uncertainties due to the nature of its business. The Company's exploration and development activities expose the Company to various financial and operational risks that could have a significant impact on its level of operating cash flows in the future. Readers are advised to study and consider risk factors stressed below.

The following are identified as main risk factors that could cause actual results to differ materially from those stated in any forward-looking statements made by, or on behalf of, the Company.

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Financing

The Company’s future financial success depends on the ability to raise additional capital from the issue of shares or the discovery of properties which could be economically justifiable to develop. Such development could take years to complete and resulting income and cash flow, if any, is difficult to determine. The sales value of any mineralization potentially discovered by the Company is largely dependent upon factors beyond the Company’s control, such as the market value of the products produced.

General Resource Exploration Risks and Competitive Conditions

The resource exploration industry is an inherently risky business with large capital expenditures and volatile metals markets. The marketability of any minerals discovered may be affected by numerous factors that are beyond the Company’s control and which cannot be predicted, such as market fluctuations, mineral markets and processing equipment, and changes to government regulations, including those relating to royalties, allowable production, importing and exporting of minerals, and environmental protection. This industry is intensely competitive and there is no guarantee that, even if commercial quantities are discovered, a profitable market will exist for their sale. The Company competes with other junior exploration companies for the acquisition of mineral claims as well for the engagement of qualified contractors. Metal prices have fluctuated widely in recent years, and they are determined in international markets over which the Company has no influence.

Governmental Regulation

Regulatory standards continue to change, making the review process longer, more complex and therefore more expensive. Exploration and development on the Company’s properties is affected by government regulations relating to such matters as environmental protection, health, safety and labour, mining law reform, restrictions on production, price control, tax increases, maintenance of claims and tenure. There is no assurance that future changes in such regulations couldn’t result in additional expenses and capital expenditures, decreasing availability of capital, competition, reserve uncertainty, title risks, and delays in operations. The Company relies on the expertise and commitment of its management team, advisors, employees and contractors to ensure compliance with current laws.

Overview

The Company is incorporated under the Business Corporation Act of British Columbia.

As a junior mineral exploration company, the Company’s core assets are the exploration rights to its exploration and evaluation assets. The Company currently has no producing properties, and consequently no operating income or cash flow. The Company is dependent on the equities markets to finance all of its activities and it is anticipated that it will continue to rely on this source of funding for its exploration expenditures and to meet its ongoing working capital requirements.

Overall Performance

For the period ended October 31, 2025, the Company had cash outflows relating to operating activities of $569,442 (2024 - $565,569) relating to general and administration expenditures during the year. The Company also had cash outflows in investing activities of $919,179 (2024 - $2,080,533) primarily due to exploration and evaluation asset expenditures. The Company received cash from financing activities of $2,350,200 (2024 - $nil) from proceeds from private placements.

Exploration and Evaluation Assets

Jackpot Lithium Property, Ontario

The Company acquired the Jackpot project in April 2016. The Jackpot Lithium property is located about 140 km NNE of Thunder Bay, Ontario.

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The Jackpot lithium deposits was described by E.G. Pye in a 1965 report published by the Ontario Department of Mines on the Georgia Lake Area. The deposits were tested by a total of 32 holes drilled in 1955 by Ontario Lithium Company Limited and its associated company Conwest Exploration Co. Ltd. The drilling confirmed the presence of at least two spodumene-bearing pegmatite bodies, one at the surface (No. 1) and the other (No. 2) lying directly beneath the No. 1 deposit. Historical resources at Jackpot, comprising only the No. 2 Dyke pegmatite zone, was reported as 2Mt @ 1.09 Li₂O estimated in 1956 by Ontario Lithium Company Limited*. The No. 2 pegmatite dyke, which was discovered by diamond-drilling, was intersected at 30 to 100 meters intervals over a strike length of 215 meters and at 30-60 meters intervals over a distance of 365 meters across strike. Dyke No. 2 is 4 to 20 meters thick, averaging 11 meters.

*The estimates presented above are treated as historic information and have not been verified or relied upon for economic evaluation by the Company. These historical mineral resources do not refer to any category of sections 1.2 and 1.3 of the NI-43-101 Instrument such as mineral resources or mineral reserves as stated in the 2010 CIM Definition Standards on Mineral Resources and Mineral Reserves. The explanation lies in the inability by the Company to verify the data acquired by the various historical drilling campaigns. The Company has not done sufficient work yet to classify the historical estimates as current mineral resources or mineral reserves.

In March 2017, the considerations in the option agreement was amended as follows:

i) issuance of 300,000 shares (issued at a value of $156,000); and
ii) issuance of 375,000 shares by March 28, 2017 (issued at a value of $75,000).

On January 18, 2018, the Company acquired an additional 100% interest in certain claims surrounding its Jackpot Property by issuing 600,000 shares to the vendors plus the granting of a 2% NSR of which the Company may purchase back 1% for $1,000,000.

In 2018, the Company completed a diamond drilling program aimed at confirming and expanding on the historical drilling (1955) at the Jackpot Property. A total of 53 holes were drilled (9,496 metres) in its long-hole program and 8 drill holes (298 metres) in its short-hole program. The long-hole program was aimed at surface, near-surface, and deeper Main Zone Dike spodumene (lithium) bearing pegmatites, whereas the short-hole program was focused exclusively on delineating surface and near-surface spodumene-rich pegmatites.

In addition, during 2018, the Company completed a prospecting and grab sampling program (96 grab samples) over most of the Jackpot Main area, identifying six (6) new areas of evolved surface pegmatite dikes and extending the historically known central Jackpot dikes to the east (+500 metres) and to the west (+400 metres).

The Company's 2018 channel sampling program generated a total of 26 channel cuts (essentially surface drill holes) from spodumene-bearing pegmatite outcrops (cleared mechanically and washed) over nine cleared areas, comprising 372 individual channel samples (355.40 metres).

During the year ended January 31, 2021, the Company paid $10,000 cash and issued 300,000 shares valued at $25,500 to acquire nine additional claims on the Jackpot Property. The vendor retains a royalty of 1.0% on revenue generated from non-smelter elements from the additional claims and a 1.0% NSR. The Company has the option to purchase back 1% of the NSR royalty for $500,000.

During the year ended January 31, 2021, the Company paid $10,000 cash and subsequently issued 300,000 shares to acquire four additional claims on the Jackpot Property. The vendor retains a royalty of 1.0% on revenue generated from non-smelter elements from the additional claims and a 1.0% NSR. The Company has the option to purchase back 1% of the NSR royalty for $500,000.

On July 22, 2021, the Company announced that it has identified several new targets of interest from a high resolution geophysical survey on the Jackpot lithium property. The survey, conducted by Novatem Airborne Geophysics, identified several east-west trending structural features oriented parallel to several lithium-rich pegmatite dykes within the Jackpot lithium deposit itself. The Company will mobilize a ground crew to site as soon as possible to investigate these structures with overburden stripping and rock and channel sampling.

On December 12, 2021, the Company entered into an option agreement to expand the Jackpot Lithium Project by acquiring a 100% interest in additional claims for a consideration of cash payment of $225,000 and issuance of 5,000,000 common shares.

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In addition, the Company will issue an additional 5,000,000 common shares in the event that it is confirmed that the claims are demonstrated to contain a NI43-101 compliant inferred resource in excess of 5,000,000 tons of $\mathrm{Li}_2\mathrm{O}$ .

The vendor retains a $2.5\%$ NSR royalty. The Company has an option to purchase $1\%$ NSR royalty for $1,000,000 at any time.

On January 17, 2022, the Company announced a 3,000-metre drilling program that was expected to begin in February.

On May 11, 2022, the Company announced assay results from previously unsampled core that were drilled in 2018. The drillholes tested lithium-bearing granitic pegmatite dikes within the main dike swarm of the Jackpot project. Results include $8\mathrm{m}$ grading $1.28\%$ lithium oxide $(\mathrm{Li}_2\mathrm{O})$ (Hole J-18-M-04) and $8.8\mathrm{m}$ grading $1.02\%$ $\mathrm{Li}_2\mathrm{O}$ (Hole J-18-M-03).

On August 17, 2022, the Company announced assay results from its ongoing drill program. This first phase of the program expanded the mineralized lithium zone at least 400 metres to the east of the previously drilled area.

On September 7, 2022, the Company announced assay results from its ongoing prospecting program. Based on the summer prospecting program, a $3\mathrm{km}$ trend of sub-parallel spodumene-bearing pegmatite dikes was identified that extends to the east and west of the Jackpot main drilling area.

On October 19, 2022, the Company announced assay results from its ongoing drilling program. The results are located within the eastern extension of the Jackpot property and are outside the known historically drilled Jackpot Main Zone. The current drill program has expanded the mineralized lithium zone at least 400 metres to the east of the previously drilled area. Highlights of the assay results reported include: Hole JP-2022-21C: $21.0\mathrm{m}$ @ $1.16\%$ $\mathrm{Li}_2\mathrm{O}$ , including 8.0 m @ $1.40\%$ $\mathrm{Li}_2\mathrm{O}$ ; Hole JP-2022-21B: $3.00\mathrm{m}$ @ $0.92\mathrm{Li}_2\mathrm{O}$ % and $11.00\mathrm{m}$ @ $0.87\mathrm{Li}_2\mathrm{O}$ ; and Hole JP-2022-16: 5.02 m @ $1.12\%$ $\mathrm{Li}_2\mathrm{O}$ and $3.12\mathrm{m}$ @ $1.35\mathrm{Li}_2\mathrm{O}$ .

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On November 29, 2022, the Company announced assay results from its ongoing prospecting program. The results are from channel samples collected on the Jackpot lithium property located on the Georgia Lake area about $140\mathrm{km}$ NE of Thunder Bay, Ontario. Highlights of the channel results reported include: $10.3\mathrm{m} @ 1.23\%$ $\mathrm{Li}_2\mathrm{O}$ , including $4.0\mathrm{m} @ 2.88\%$ $\mathrm{Li}_2\mathrm{O}$ ; and $10.00\mathrm{m} @ 1.02\%$ $\mathrm{Li}_2\mathrm{O}$ , including $6.00\mathrm{m} @ 1.56\%$ $\mathrm{Li}_2\mathrm{O}$ .

On January 1, 2023, the Company announced the discovery of a new drilling target located approximately $1.6\mathrm{km}$ to the northwest of the Jackpot Main Zone. Grab samples from this area have identified at least one mineralized spodumene-bearing granitic pegmatite over a strike length of approximately $500\mathrm{m}$ with samples collected from the pegmatite returning $\mathrm{Li}_2\mathrm{O}$ values up to $2.72\%$ .

On February 9, 2023, positive preliminary results from metallurgical test at Jackpot were announced.

On February 15, 2023, the Company announced drill results including the best drill intercept to date. Hole JP-2022-39B returned an intercept of $25.46\mathrm{m}$ grading $1.21\%$ $\mathrm{Li}_2\mathrm{O}$ , including $10\mathrm{m}$ of $1.88\%$ $\mathrm{Li}_2\mathrm{O}$ .

On April 5, 2023, the Company announced the launch of a property wide exploration program on the 18,800 ha Jackpot property. The exploration program would include diamond drilling to expand the Jackpot Main Zone, drilling of previously untested exploration targets, a large prospecting and geological survey accompanied by rock and soil sampling. For the first time, the exploration program will cover the entirety of the vast Jackpot land package.

On May 16, 2023, the Company announced assay results from holes drilled in 2023. The 2023 drill program to date has focused on the Jackpot Main Zone to increase the drill density and included: Hole JP-23-03: $9.23\mathrm{m}$ @ $1.04\%$ $\mathrm{Li}_2\mathrm{O}$ ; Hole JP-23-04: $5.00\mathrm{m}$ @ $1.25\%$ $\mathrm{Li}_2\mathrm{O}$ ; and Hole JP-23-04B: $6.00\mathrm{m}$ @ $1.36\%$ $\mathrm{Li}_2\mathrm{O}$ .

On June 20, 2023, announced the commencement of its 2023 summer drill program at the Jackpot Lithium project. Drilling would initially focus on a lithium bearing pegmatite exploration target and be followed by expansion drilling at the Jackpot Main Zone.

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On October 24, 2023, the Company announced an update to its exploration program, including drill results of 14.35 m grading 1.22% Li₂O in hole JPMET-2023-03, 12.05 m grading 1.06% Li₂O in hole JPMET-2023-02, 9.98 m grading 1.14% Li₂O in hole JPMET-2023-01B, and 9.0 m grading 1.00% Li₂O in hole JP-2023-P1.

On November 14, 2023, Imagine entered into a memorandum of understanding (“MOU”) with Rock Tech Lithium (“Rock Tech”) to explore cooperation opportunities, including but not limited to commercial partnership structures, M&A schemes, joint exploration and development of their projects. Under the MOU, the Company and Rock Tech will explore proximal synergies between the adjacent and nearby properties with the joint target to develop a reliable raw material supply chain to support Rock Tech’s proposed lithium converter along Lake Superior’s North Shore.

On January 16, 2024, the Company announced surface drill results from the ongoing drilling program. Significant results included 15.77 m grading 1.08% Li₂O in hole JP-MAIN-2023-06, including 6.00 m grading 2.04% Li₂O, 5.3 m grading 1.68% Li₂O in hole JPMET-2023-01B and 7.0 m grading 1.03% Li₂O from 40 m in hole JP-2023-P6.

On April 2, 2024, the Company announced results from the newly discovered Casino Royale zone. Results included 1.09% Li₂O over 7.70 m from 84.85 m in hole JP-24-23, and 1.04% Li₂O over 12.80 m from 90.50 m in hole JP-24-24, including 1.35% Li₂O over 6.80 m from 96.50 m. Results from the Jackpot Mine zone included 1.34% Li₂O over 6.30 m from 50.50 m in hole JP-23-18, 1.02% Li₂O over 10.10 m from 31.10 m in hole JP-23-24.

On May 1, 2024, the Company announced additional results from the Casino Royale zone including 1.02% Li₂O over 18.90 m from 159.30 m in hole JP-24-26, 0.96% Li₂O over 13.25 m from 154.20 m in hole JP-24-28, including 1.42% Li₂O over 9.10 m from 155.25 m, 1.15% Li₂O over 11.85 m from 93.60 m in hole JP-24-30, including 1.58% Li₂O over 7.30 m from 94.10 m.

On May 28, 2024, the Company reported the largest lithium bearing drill intersection on the property to date on the Jackpot property. Results included 0.92% Li₂O over 35.10 m, 1.03% Li₂O over 5.3 m and 1.18% Li₂O over 4.65 m the west of the Jackpot Main Zone.

On September 3, 2024, the Company released an initial NI 43-101 mineral resource estimate of 3.1 Mt @ 0.85% Li₂O in the indicated category and 5.3 Mt @ 0.91% Li₂O in the inferred category.

On October 18, 2024, the Company filed and independent Technical Report prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) supporting the Mineral Resource Estimate for the Jackpot Lithium Property, reported on September 03, 2024.

On January 15, 2025, the Company announced results from its fall 2024 drill program and 2024 field season. Highlights included 1.08% Li₂O over 11.5 m and 1.14% Li₂O over 5.05 m in drill core at Casino Royale and a channel samples containing 1.61% over 7.80 m to the east of the east of the 500 Zone.

On October 3, 2025, the Company reported a successful field season to expand the known lithium mineralization on the Jackpot property.

The 2025 exploration program focused on property wide expansion of the known lithium mineralization on the property. Geological mapping and surface rock sampling was completed to follow-up soil geochemical anomalies identified by the 2024 program and additional soil sampling was completed to infill gaps in the older girds. During the 2025 field program, a total of:

• 1,106 field mapping stations were observed;
• 145 surface grab samples were collected for assay outside the current resource envelope;
• 28 muscovite samples were collected for LIBS geochemical analysis;
• 306 soil samples collected from the northern portion of the property (Jackpot West and Newkirk area); and
• 199 soil samples collected from the SW infill grid (north of MNW area).

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Jackpot project target zones and diamond drillhole collar locations.

Results of the geological mapping and sampling program yielded 34 samples that returned greater than $0.10\%$ Li2O, with an additional 8 samples returning tantalum values anomalously higher than $100~\mathrm{ppm}$ Ta in bedrock (Table 1). The highest bedrock sample returned $3.92\%$ Li2O from 85 bedrock samples and the highest boulder sample returned $4.16\%$ Li2O from 60 boulder samples throughout the property.

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Table 1. Highlights of 2025 Surface Grab Samples Li2O (%)

Sample ID	UTM E	UTM N	Li_{2}O %	Ta (ppm)	K/Rb	Occurrence
487615	428136	5457163	4.155	8.8	34	Boulder
487583	431656	5456574	3.918	99.7	24	Outcrop
487737	429764	5463597	3.596	130	19	Boulder
487614	432222	5460802	3.509	2.4	42	Boulder
487736	429768	5463570	3.458	292	19	Subcrop
487585	430310	5460007	3.402	28	34	Boulder
487559	432030	5459442	2.907	16	61	Boulder
487565	432120	5459630	2.734	21.5	36	Boulder
487653	426929	5456950	2.691	23.6	42	Boulder
487739	429800	5463609	2.627	65.3	18	Boulder
487564	431947	5459457	2.519	21.7	42	Boulder
487600	428840	5460019	2.476	3.4	29	Boulder
487582	431624	5456581	2.153	124	24	Outcrop
282971	431615	5457724	2.112	42.6	30	Bedrock
487740	429819	5463642	1.869	102	17	Boulder
487609	431613	5457720	1.839	66.2	31	Outcrop
487734	429788	5463582	1.735	80	17	Boulder
487587	430554	5460710	1.425	51.4	33	Boulder
487701	425971	5460170	1.322	13.8	20	Boulder
487706	432605	5460995	1.240	39.2	31	Boulder
282969	436151	5473996	1.238	44.1	29	Bedrock
487738	429814	5463617	1.234	140	19	Boulder
487595	429906	5459611	1.171	40.9	41	Boulder
487624	433069	5461440	1.115	43.4	35	Subcrop
487623	433115	5461453	1.053	15.7	38	Boulder
487704	432771	5461161	0.771	33.2	30	Boulder
487569	431667	5459386	0.360	59.2	42	Boulder
487558	432111	5459552	0.353	4.8	20	Boulder
487563	431794	5459506	0.325	280	78	Boulder
487562	432113	5459495	0.271	18.9	56	Boulder
487703	432802	5461185	0.243	9	32	Boulder
487705	432765	5460980	0.217	2	78	Boulder
487567	431989	5459614	0.180	10	68	Boulder
487639	432665	5460995	0.101	9	91	Boulder
487743	432917	5455683	0.026	205	93	Outcrop
487654	430757	5463261	0.004	147	27	Subcrop
487731	432705	5456421	0.008	121	40	Outcrop
487649	440055	5459580	0.004	118	24	Outcrop
487591	430194	5459890	0.011	112	25	Outcrop
487730	432717	5456397	0.036	109	32	Outcrop
487608	431555	5457713	0.021	101	26	Outcrop
487590	430188	5459887	0.007	100	21	Outcrop

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Jackpot project surface grab sample results from the 2025 field program.

Of the six new spodumene mineralized zones, Jackpot West and Cosgrave North have in-situ lithium pegmatite on surface (Figure 3). The Jackpot South and Newkirk Zones consist of subcrop and boulders, while the Southwest Zone and Blay Lake Zone are defined by boulders (Figure 3). The Jackpot South, Blay Lake, Jackpot West, Cosgrave North and Newkirk Zones will all be permitted for diamond drilling and bedrock stripping that will be completed in the winter and spring of 2026.

Imagine Lithium implemented a strict QA/QC protocol in processing all rock and soil samples collected from the core material and soil horizons obtained on the Jackpot property. The protocol included the insertion and monitoring of appropriate reference materials. High and low concentration certified lithium standards, blanks and duplicates are used to validate the accuracy and precision of the assay results. All collected core rock and soil samples were put in sturdy plastic bags, tagged, and sealed in the core shack under the supervision of a professional geologist. The sample

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number, depth and brief description of each sample is logged and entered to a digital database. Rock core samples were split using a diamond saw with half of the sample remaining in the core box and the other being placed in a labelled sample bag. Duplicate samples were quarter split and placed into individual sample bags.

All sample bags were put into rice bags and stored securely before being delivered to AGAT Laboratories in Thunder Bay, Ontario. Samples are processed and crushed at the AGAT facility in Thunder Bay. Lithium was analyzed by Sodium Peroxide Fusion with ICP-OES and ICP-MS Finish. Soil samples were placed into small brown paper bags and analyzed by 4-Acid digest with ICP-OES and ICP-MS Finish.

On October 15,2025, the Company provided a summary of the most significant technical milestone at Jackpot Lithium Project. The following highlights include the results of the recently completed NI 43-101 compliant Mineral Resource Estimate (MRE), metallurgical test work, surface exploration programs which identified new high-priority targets. Together with on-going and future exploration plans, these milestones continue to demonstrate the project's strong potential as an open-pit, hard-rock lithium deposit.

RESOURCE HIGHLIGHTS - NI 43-101 MINERAL RESOURCE ESTIMATE

• Indicated Resource: 3.1 million tonnes grading 0.85% Li O (26,200 t contained Li O)
• Inferred Resource: 5.3 million tonnes grading 0.91% Li O (49,500 t contained Li O)
• Cut-off Grade: 0.30% Li O (pit-constrained)
• Recovery: 81.5% Li O, based on SGS metallurgical testing
• Bulk Density: 2.69 t/m³
• Estimation Method: Inverse distance squared (ID²) on 2 × 2 × 2 m blocks
• Effective Date: September 3, 2024; prepared by P&E Mining Consultants Inc.; technical report filed October 18, 2024.

The MRE outlines two conceptual pit shells — Jackpot and Casino Royale — both exhibiting good grade continuity and strong potential for resource expansion. The resources remain open along strike and to depth.

Metallurgical Test Work

The early metallurgical results demonstrate that Jackpot mineralization can yield a high-grade spodumene concentrate suitable for the lithium battery supply chain.

• Metallurgical testing was conducted by SGS Lakefield (2022-2023) on a 200 kg composite sample grading 1.72% Li O and 0.29% Fe O.
• Heavy Liquid Separation (HLS) produced a 6.0% Li O spodumene concentrate with 81.5% Li O recovery, and a concentrate iron content of 0.76% Fe O, without magnetic separation.
• Additional optimization through dense media separation (DMS) and flotation is expected to further enhance recovery and concentrate grade.
• The Company adopted the 81.5% recovery figure within the MRE cut-off assumptions.

Recent Surface Exploration Programs

In addition to drilling, Imagine Lithium has completed a series of surface exploration programs to refine targets across the Jackpot property:

• Diamond Drilling: Resource expansion drilling west of the Jackpot pit shell intersected 0.92% Li2O over 35.10m in hole JP-24-31;
• Channel Sampling: Continuous channel sampling of exposed spodumene-bearing pegmatite outcrops returned exceptional results including 65.10 m @ 1.10% Li O, 10.3 m @ 1.23% Li O (including 4.0 m @ 2.88% Li O), and 10.0 m @ 1.02% Li O (including 6.0 m @ 1.56% Li O). These broad, high-grade channels confirm excellent surface continuity along multiple dykes within the Jackpot Main Zone and the emerging Casino Royale area.
• Prospecting: geological mapping and sampling has identified six new spodumene-bearing pegmatite zones outside the current resource pit shells, all of which remain untested by drilling.
• Soil Sampling: Over 1,200 soil samples collected on a 100 m × 50 m grid defined lithium-cesiumtantalum (LCT) anomalies extending over 2 km northwest of the Main Zone.
• Geophysics: High-resolution magnetic and LiDAR surveys have defined structural corridors and parallel dyke trends coincident with known mineralization, providing new high-priority targets for 2026 drilling.

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These surface programs expand the mineralized footprint well beyond the current pit-constrained resource and highlight the potential for continued resource growth at both Jackpot and Casino Royale.

Jackpot Lithium Project map showing the Jackpot and Casino Royale Pit Shells and surrounding exploration targets (Salo, Blay Lake, South Jackpot, etc.). Source: Imagine Lithium Inc.

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On December 5, 2025, the Company acquired 18 multi-cell mineral claims for an aggregate cash payment of $30,000. The claims are subject to a 2% net smelter royalty.

Results of Operations

The results of operations reflect the overhead costs incurred for exploration and evaluation assets acquisitions and exploration expenses incurred by the Company to maintain good standing with the various regulatory authorities and to provide an administrative infrastructure to manage the acquisition, exploration, and financing activities of the Company. General and administrative costs can be expected to increase or decrease in relation to the changes in activity required as property acquisitions and exploration continues. As at October 31, 2025, the Company had not generated any revenues from its exploration and evaluation assets.

Revenues

Due to the Company’s status as an exploration stage resource company, and a lack of commercial production from its properties, the Company currently does not have revenues from its operations.

General and Administrative Expenses

For the nine months ended October 31, 2025 and 2024

The Company incurred a comprehensive loss of $69,429 for the period ended October 31, 2025 (2024 – comprehensive income of $460,188).

A brief explanation of the significant changes in expense categories is provided below:

i) Consulting fees of $251,989 (2024 - $278,989) decreased as a result of a decrease in number of consultants.

i) Professional fees of $44,996 (2024 - $65,302) decreased due to lower audit and legal fees incurred during the current period.

ii) Office and administration of $9,197 (2024 - $40,118) as a result of overall decrease in activities during the current period.

iii) Shareholder communication and promotion of $28,978 (2024 - $76,767) decreased during the current period. In 2024, the Company participated in a couple of conferences.

iv) Transfer agent and filling fees of $57,430 (2024 - $51,917) increased due to the share issuances relating to the private placements that occurred during the current period.

v) Travel and accommodation of $11,525 (2024 - $20,484) decreased as a result of overall decrease in activities during the current period.

vi) Flow-through recovery of $334,686 (2024 - $979,494) relates to the recovery on exploration and evaluation expenses incurred during the period.

vii) The Company realized interest income on GICs in the amount of $74,276 during the nine months ended October 31, 2024 (2025 - $nil).

viii) The Company realized a loss on the sale of marketable securities in the amount of $65,723 during the nine months ended October 31, 2024 (2025 - $nil).

ix) Unrealized gain on marketable securities of $5,718 related to the change in fair value of marketable securities held during the period ended October 31, 2024. The Company did not hold any marketable securities as at October 31, 2025.

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For the three months ended October 31, 2025 and 2024

The Company incurred a comprehensive loss of $3,541 for the period ended October 31, 2025 (2024 – comprehensive income of $193,945).

A brief explanation of the significant changes in expense categories is provided below:

i) Consulting fees of $100,493 (2024 - $89,996) increased as a result of a higher fees in the current period.
ii) Professional fees of $9,708 (2024 - $13,913) decreased due to lower audit and legal fees incurred during the current period.
iii) Office and administration of $(9,019) (2024 - $13,260) as a result of overall decrease in activities during the current period.
iv) Shareholder communication and promotion of $7,596 (2024 - $9,992) decreased during the current period due fewer transactions during the current period.
v) Transfer agent and filling fees of $12,690 (2024 - $11,618) slightly increased due to the more transactions during the current period.
vi) Travel and accommodation of $11,380 (2024 - $1,911) increased as a result of overall increase in travel activities during the current period.
vii) Flow-through recovery of $129,307 (2024 - $357,667) relates to the recovery on exploration and evaluation expenses incurred during the period.
viii) The Company realized interest income on GICs in the amount of $459 during the three months ended October 31, 2024 (2025 - $nil).
ix) The Company realized a loss on the sale of marketable securities in the amount of $45,133 during the three months ended October 31, 2024 (2025 - $nil).
x) Unrealized gain on marketable securities of $21,642 related to the change in fair value of marketable securities held during the period ended October 31, 2024. The Company did not hold any marketable securities as at October 31, 2025.

Summary of Quarterly Results

The following table sets out selected consolidated quarterly information for the last eight quarters.

Three Months Ended	October 31, 2025	July 31, 2025	April 30, 2025	January 31, 2025
Interest Income	$ nil	$ nil	$ nil	$ nil
Exploration and evaluation assets	19,127,824	18,717,428	18,206,032	18,113,055
Deficit	24,823,242	24,819,701	24,874,103	24,753,813
Net Income (Loss)	(3,541)	54,402	(120,290)	(191,062)
Basic and Diluted Income (Loss) Per Share	0.00	0.00	0.00	0.00

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Three Months Ended	October 31, 2024	July 31, 2024	April 30, 2024	January 31, 2024
Interest Income	$ 462	$ 40,021	$ 33,796	$ 47,909
Exploration and evaluation assets	18,089,000	17,384,712	16,900,252	15,519,250
Deficit	24,562,751	24,756,699	24,804,208	25,022,939
Net Income (Loss)	193,948	47,512	218,731	232,730
Basic and Diluted Loss Per Share	0.00	0.00	0.00	0.00

Liquidity and Capital Resources

During the period ended October 31, 2025, the Company had working capital of $798,917 (January 31, 2025 – working capital deficiency of $30,485)

During March 2025, the Company closed a non-brokered private placement of 28,000,000 flow-through shares at a price of $0.0459 per share for gross proceeds of $1,285,200 and 35,500,000 million non-flow-through common shares at a price of $0.03 per common share for gross proceeds of $1,065,000. Total gross proceeds from the private placements were $2,350,200.

Financial risk factors

The carrying value of cash and cash equivalents, marketable securities, and accounts payable and accrued liabilities approximated their fair value because of the short-term nature of these instruments.

The Company's risk exposures and the impact on the Company's financial instruments are summarized below:

Credit risk

The Company's credit risk is primarily attributable to cash and cash equivalents, and commodity tax recoverable. Cash and cash equivalents are held in large financial institutions. Commodity tax recoverable is due from a government agency.

Liquidity risk

The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. The Company's financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms. The Company is exposed to liquidity risk.

Market risk

(a) Interest rate risk

The Company is currently in a negative working capital position and some of its accounts payable and accrued liabilities are subject to interest on unpaid balances.

(b) Foreign currency risk

The Company's functional currency is the Canadian dollar and major purchases are transacted in Canadian dollars. The Company funds certain operations, exploration and administrative expenses in the United States on a cash call basis using US dollar currency converted from its Canadian dollar bank accounts held in Canada. The Company has limited foreign currency exposure.

(c) Price risk

The Company is exposed to price risk with respect to commodity prices. The Company closely monitors commodity prices to determine the appropriate course of action to be taken by the Company.

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Related Party Transactions

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly. Key management personnel include the Company’s executive officers and Board of Director members.

During the period ended October 31, 2025, the Company:

a) paid or accrued management fees of $37,500 (2024 - $nil) to a company owned by a director of the Company for management services provided;
b) paid or accrued exploration and evaluation costs of $157,775 (2024 - $nil) to a company owned by a director;
c) paid or accrued management fees of $45,000 (2024 - $45,000) to a company owned by an officer of the Company.

As at October 31, 2025, $60,870 (2024 - $nil) were due to related parties.

Off Statement of Financial Position Arrangements

The Company is not a party to any off statement of financial position arrangements or transactions.

Contingencies

There are no contingent liabilities.

Disclosure Controls and Procedures

TSX Venture listed companies are not required to provide representations in the annual filings relating to the establishment and maintenance of Disclosure controls and procedures (“DC&P”) and Internal controls over financial reporting (“ICFR”), as defined in National Instrument 52-109. In particular, the CEO and CFO certifying officers do not make any representations relating to the establishment and maintenance of (a) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation, and (b) a process to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s IFRS. The issuer’s certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in their certificates regarding the absence of misrepresentations and fair disclosure of financial information. Investors should be aware that inherent limitation on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in National Instrument 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.

DC&P are intended to provide reasonable assurance that information required to be disclosed is recorded, processed, summarized and reported within the time periods specified by securities regulations and that information required to be disclosed is accumulated and communicated to management. ICFR are intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with IFRS.

Accounting policies adopted during the period ended October 31, 2025 and future accounting pronouncements

Please refer to the January 31, 2025 and 2024 audited consolidated financial statements posted on www.sedarplus.ca for future accounting pronouncements as well as accounting policies adopted during the year.

Management’s Responsibility for Financial Statements

The information provided in this report, including the financial statements, is the responsibility of management. In the preparation of these statements, estimates are sometimes necessary to make a determination of future values for certain assets or liabilities. Management believes such estimates have been based on careful judgements and have been properly reflected in the financial statements.

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Other MD&A Requirements

As at the date of this report, the Company had the following outstanding:

• 340,628,030 common shares
• Stock options:

Number of Options	Exercise Price	Expiry Date
1,400,000	0.08	19-Aug-27
1,775,000	0.08	11-Nov-27
7,200,000	0.05	10-Dec-30
10,375,000

• Warrants:

Number of Warrants	Exercise Price	Expiry Date
4,000,000	0.11	13-May-27
4,000,000

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HEAD OFFICE

Suite 1240, 789 West Pender Street
Vancouver, BC, V6C 1H2
Tel: (604) 683-3995
Fax: (604) 683-3988
Email: info@imaginelithium.com
Website: www.imaginelithium.com

REGISTRAR & TRANSFER AGENT

TSX Trust Company
Suite 1620, 1185 West Georgia Street, Vancouver, BC
V6E 4E6
Phone: (604) 696-4234
Fax: (604) 696-9860

DIRECTORS AND OFFICERS

Simone Suen, President and Director
Sufan Siauw, Director
Jason Arnold, Director
Arvin Ramos, Chief Financial Officer

SOLICITOR

Richards Buell Sutton LLP
Suite 700, 401 West Georgia Street
Vancouver, BC
V6B 5A1
Phone: (604) 682-3664
Fax: (604) 688-3830

AUDITORS

Jones & O’Connell LLP
43 Church Street, Suite 500
St. Catharines, ON
L2R 7A7
Phone: (905) 688-4842
Fax: (905) 688-1746