Inflection Resources Ltd. — Annual Report 2025

Jan 29, 2026

INFLECTION RESOURCES

INFLECTION RESOURCES LTD.
(An exploration stage company)

CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED SEPTEMBER 30, 2025 AND 2024
(Expressed in Canadian Dollars)

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dmcl LLP

dmcl.ca

Independent Auditor's Report

To the Shareholders of Inflection Resources Ltd.

Opinion

We have audited the consolidated financial statements of Inflection Resources Ltd. (the "Company"), which comprise the consolidated statements of financial position as at September 30, 2025 and 2024, and the consolidated statements of comprehensive loss, changes in shareholders' equity and cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "financial statements").

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at September 30, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 to the financial statements, which describes events or conditions that indicate a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters, that in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Except for the matter described in the Material Uncertainty Related to Going Concern section, we have determined that there are no other key audit matters to communicate in our report.

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Other Information

Management is responsible for the other information. The other information comprises the information included in Management's Discussion and Analysis.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting

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a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Otto Ehinger.

DMCL LLP

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, BC

January 28, 2026

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INFLECTION RESOURCES LTD.
(An Exploration Stage Company)
Consolidated Statements of Financial Position
(Expressed in Canadian dollars)

	September 30, 2025	September 30, 2024
ASSETS
Current Assets
Cash and cash equivalents	$ 1,902,374	$ 3,072,983
Receivables	41,617	56,483
Prepaids	81,894	39,749
Total Current Assets	2,025,885	3,169,215
Non-Current Assets
Refundable security deposits (Note 6)	237,844	255,847
Exploration and evaluation assets (Notes 7 and 8)	10,114,348	6,656,213
Total Non-Current Assets	10,352,192	6,912,060
Total Assets	$ 12,378,077	$ 10,081,275
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued liabilities (Notes 9)	$ 219,462	$ 510,856
Advance for exploration projects (Note 7)	4,807	130,981
Derivative liability (Note 7)	-	33,450
Total Liabilities	224,269	675,287
Shareholders’ Equity
Share capital (Note 8)	20,496,657	16,670,396
Reserves (Note 8)	1,949,644	1,972,051
Deficit	(10,292,493)	(9,236,459)
Total Shareholders’ Equity	12,153,808	9,405,988
Total Liabilities and Shareholders’ Equity	$ 12,378,077	$ 10,081,275

Subsequent event (Note 12)

APPROVED ON BEHALF OF THE BOARD ON JANUARY 28, 2026:

/s/ "Alistair Waddell"
/s/ "Cecil R. Bond"

DIRECTOR
DIRECTOR

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

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Consolidated Statements of Comprehensive Loss

(Expressed in Canadian dollars, except share amounts)

| | Year Ended
September 30, 2025 | Year Ended
September 30, 2024 |
| --- | --- | --- |
| Expenses: | | |
| Accounting and audit | $ 56,430 | $ 96,884 |
| Amortization (Note 7) | 15,353 | 15,003 |
| Consulting | 540 | - |
| Legal | 3,682 | 4,519 |
| Office and sundry | 92,858 | 77,517 |
| Project generation | 52,886 | 13,368 |
| Regulatory | 45,113 | 44,115 |
| Salaries and benefits (Note 9) | 436,172 | 434,421 |
| Shareholder relations | 140,441 | 287,509 |
| Share-based payments (Notes 8 and 9) | - | 461,109 |
| Total expenses | (843,475) | (1,434,445) |
| Other income and expenses items: | | |
| Write-off of exploration and evaluation assets (Note 7) | (231,090) | (1,719,946) |
| Derivative option gain (loss) (Note 7) | (100,000) | 138,487 |
| Interest and other income | 93,975 | 100,212 |
| Foreign exchange gain | 24,556 | 16,399 |
| Net loss and comprehensive loss for the year | $ (1,056,034) | $ (2,899,293) |
| Basic and diluted loss per share | $ (0.01) | $ (0.03) |
| Weighted average number of common shares outstanding | 107,216,755 | 96,362,428 |

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

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Consolidated Statements of Changes in Shareholders' Equity

(Expressed in Canadian dollars, except share amounts)

	Number of Shares	Amount	Reserves	Deficit	Total
Balance, September 30, 2023	95,057,670	$ 15,724,411	$ 1,535,278	$(6,337,166)	$10,922,523
Exercise of stock options (Note 8)	325,000	63,336	(24,336)	-	39,000
Exercise of warrants (Note 8)	5,942,500	891,375	-	-	891,375
Share issuance costs (Note 8)	-	(8,726)	-	-	(8,726)
Share-based payments (Note 8)	-	-	461,109	-	461,109
Comprehensive loss for the year	-	-	-	(2,899,293)	(2,899,293)
Balance, September 30, 2024	101,325,170	16,670,396	1,972,051	(9,236,459)	9,405,988
Shares issued for AngloGold conversion (Notes 7 and 8)	11,133,399	3,451,354	-	-	3,451,354
Exercise of stock options (Note 8)	200,000	62,407	(22,407)	-	40,000
Shares issued for exploration and evaluation assets (Notes 7 and 8)	1,250,000	312,500	-	-	312,500
Comprehensive loss for the year	-	-	-	(1,056,034)	(1,056,034)
Balance, September 30, 2025	113,908,569	$ 20,496,657	$ 1,949,644	$(10,292,493)	$12,153,808

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

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INFLECTION RESOURCES LTD.
(An Exploration Stage Company)
Consolidated Statements of Cash Flows
(Expressed in Canadian dollars)

	Year Ended September 30, 2025	Year Ended September 30, 2024
Cash provided from (used by):
Operation:
Net loss for the year	$ (1,056,034)	$ (2,899,293)
Items not involving cash:
Amortization	15,353	15,003
Share-based payments	-	461,109
Derivative option loss (gain)	100,000	(138,487)
Write-off of mineral property interest, net of recovery	231,090	1,719,946
	(709,591)	(841,722)
Changes in non-cash working capital items:
Receivables	14,866	(2,907)
Prepaids	(42,145)	22,249
Accounts payable and accrued liabilities	(29,577)	(255,494)
Cash used by operating activities	(766,447)	(1,077,874)
Investing:
Expenditures for exploration and evaluation assets	(5,479,078)	(7,314,328)
Recoveries from cash call from Farm In Agreement	4,675,534	6,825,508
Recoveries from management fee receipts from Farm In Agreement	467,553	682,551
Advance for exploration projects from Farm In Agreement	(126,174)	(77,452)
Receipt of government grants	-	291,176
(Payment) recovery of refundable security deposits, net	18,003	(4,486)
Cash provided from (used by) investing activities	(444,162)	402,969
Financing:
Exercise of stock options	40,000	39,000
Exercise of warrants	-	891,375
Share issuance costs	-	(8,726)
Cash provided from financing activities	40,000	921,649
Change in cash and cash equivalents	(1,170,609)	246,744
Cash and cash equivalents, beginning of year	3,072,983	2,826,239
Cash and cash equivalents, end of year	$ 1,902,374	$ 3,072,983
Cash and cash equivalents consist of:
Cash	$ 1,708,424	$ 2,595,293
Restricted cash (AngloGold funds)	164,159	447,899
Restricted cash (Security deposit)	29,791	29,791
	$ 1,902,374	$ 3,072,983
SUPPLEMENTARY DISCLOSURE WITH RESPECT TO CASH FLOW
Fair value from exercise of stock options	$ 22,407	$ 24,336
Shares issued for exploration and evaluation assets	$ 312,500	$ -
Shares issued for AngloGold conversion (Note 7)	$ 3,451,354	$ -
Exploration and evaluation assets included in accounts payable and accrued liabilities	$ 50,683	$ -

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

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

1. NATURE OF OPERATIONS AND GOING CONCERN

Inflection Resources Ltd. ("Inflection" or the "Company") was incorporated pursuant to the provisions of the Business Corporations Act (British Columbia) on May 9, 2017, and its principal business activity is the exploration and evaluation of mineral properties located in New South Wales, Australia. The Company's head office and registered and records office address is Suite 1210, 1130 West Pender Street, Vancouver, British Columbia, Canada, V6E 4A4. The Company's common shares were listed for trading on the Canadian Securities Exchange on July 21, 2020.

The business of mineral exploration involves a high degree of risk and there is no assurance that current exploration projects will result in future profitable mining operations. The Company has no source of revenue and has significant cash requirements to meet its administrative overhead, maintain and advance its exploration and evaluation assets, and to pay its debts and liabilities. The recoverability of amounts shown for exploration and evaluation properties is dependent on several factors. These include the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development of these properties, and future profitable production or proceeds from disposition of exploration and evaluation assets. The carrying value of the Company's exploration and evaluation assets may not reflect current or future values.

These consolidated financial statements for the years ended September 30, 2025 and 2024 (the "Financial Statements") have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. For the year ended September 30, 2025, the Company has not achieved profitable operations, had incurred a net loss of $1,056,034 (2024 - $2,899,293), and as at September 30, 2025 had an accumulated deficit of $10,292,493 (2024 - $9,236,459). The ability of the Company to continue as a going concern and meet its commitments as they become due, including exploration of its exploration and evaluation assets, is dependent on the Company's ability to obtain the necessary financing; consequently, management continues to pursue various financing alternatives to fund operations and advance its business plan.

These material uncertainties may cast significant doubt upon the Company's ability to continue as a going concern. If the going concern assumption was not appropriate for these Financial Statements, adjustments would be necessary to the carrying values of assets, liabilities, reported income and expenses and the consolidated statement of financial position classifications used. Such adjustments could be material.

2. BASIS OF PRESENTATION

Statement of compliance

The Financial Statements, including comparatives, have been prepared using accounting policies consistent with IFRS ® Accounting Standards as issued by the International Accounting Standards Board ("IASB").

Approval of the Financial Statements

These Financial Statements were approved by the Company's Board of Directors on January 28, 2026.

Basis of consolidation and presentation

The Financial Statements incorporate the financial statements of the Company and its wholly-owned Australian subsidiary, Australian Consolidated Gold Holdings Pty Ltd. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All intercompany transactions and balances have been eliminated.

The Financial Statements have been prepared on a historical cost basis, except for financial instruments classified as fair value through profit and loss, which are stated at their fair value. In addition, the Financial Statements have been prepared using the accrual basis of accounting except for cash flow information.

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INFLECTION RESOURCES LTD.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
For the Years Ended September 30, 2025 and 2024
(Expressed in Canadian dollars)

3. MATERIAL ACCOUNTING POLICY INFORMATION

The Company has consistently applied the following accounting policies to all periods presented in these Financial Statements, except if mentioned otherwise.

a. Cash and cash equivalents

Cash equivalents include short term deposits with an original maturity of three months or less and are readily convertible into a known amount of cash.

b. Financial instruments

The Company classifies its financial instruments in the following categories: at fair value through profit and loss ("FVTPL"), at fair value through other comprehensive income (loss) ("FVTOCI") or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company's business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL.

For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL.

The following table shows the classification under IFRS 9, Financial Instruments ("IFRS 9"):

Financial assets / liabilities	Classification
Cash and cash equivalents	FVTPL
Receivables	Amortized cost
Accounts payable and accrued liabilities	Amortized cost
Advance for exploration projects	Amortized cost
Derivative liability	FVTPL

(i) Measurement

Financial assets and liabilities at amortized cost: initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment.

Financial assets and liabilities carried at FVTPL: initially recorded at fair value and transaction costs are expensed in the consolidated statements of comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the consolidated statements of comprehensive loss in the period in which they arise.

(ii) Impairment of financial assets at amortized cost

The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses. The Company recognizes in the consolidated statements of comprehensive loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized.

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

3. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

b. Financial instruments (continued)

(iii) Derecognition

Financial assets: The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity.

Financial liabilities: The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and/or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

Gains and losses on derecognition are generally recognized in profit or loss.

(iv) Financial instrument disclosures – fair value hierarchy

The Company provides disclosures that enable users to evaluate (a) the significance of financial instruments for the entity's financial position and performance; and (b) the nature and extent of risks arising from financial instruments to which the entity is exposed during the period and at the date of the statement of financial position, and how the entity manages these risks. The Company provides information about its financial instruments measured at fair value at one of three levels according to the relative reliability of the inputs used to estimate the fair value:

Level 1:	Unadjusted quoted prices in active markets for identical assets that are accessible at the measurement date for identical, unrestricted assets or liabilities
Level 2:	Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability
Level 3:	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity)

Cash is measured using Level 1 inputs. The derivative liability is measured using Level 3 inputs.

c. Foreign currency translation

The presentation currency of the Company is the Canadian dollar. The functional currency of the parent entity and its subsidiary is the currency of the primary economic environment in which each entity operates. Management have determined that the Company and its Australian subsidiary have a Canadian dollar functional currency. References to Australian dollars denoted as "AUD", and United States dollars as "USD".

Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on dates of transactions. At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange gains and losses on translation are included in profit and loss.

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

3. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

c. Foreign currency translation (continued)

The functional currency of the Company and its subsidiary is the Canadian dollar, and accounts denominated in currencies other than the Canadian dollar have been translated as follows:

• Monetary assets and liabilities at the exchange rate at the consolidated statement of financial position date;
• Non-monetary assets and liabilities at the historical exchange rates, unless such items are carried at fair value, in which case they are translated at the date when the fair value was determined;
• Shareholders' equity items at historical exchange rates; and
• Revenue and expense items at the rate of exchange on the transaction date.

Exchange gains and losses are recorded in the consolidated statement of comprehensive loss in the period in which they occur.

d. Exploration and evaluation assets ("E&E")

Once the legal right to explore a property has been acquired, costs directly related to E&E expenditures are recognized and capitalized, in addition to the acquisition costs. These direct expenditures include such costs as materials used, surveying costs, drilling and assay costs and payments made to contractors during the exploration phase. Expenditures not directly attributable to E&E activities, including general and administrative overhead costs, are expensed in the period in which they occur. The costs are accumulated by exploration area and are not depleted pending determination of technical feasibility and commercial viability.

From time to time, the Company may acquire or dispose of properties pursuant to the terms of option agreements. Due to the fact that mineral property purchase options are exercisable entirely at the discretion of the optionee, the amounts payable or receivable are not recorded. Option payments are recorded as E&E assets or recoveries when the payments are made or received.

The Company also recognizes and capitalizes the cost of capital equipment directly related to its mineral exploration properties as a component of E&E assets. Where the estimated useful life of such equipment is estimated to be less than the expected period of time to the potential commencement of production from the E&E asset, the charges for depreciation are reflected in the consolidated statement of comprehensive loss. Otherwise, charges for the depreciation of long-lived equipment used in exploration and evaluation activities are included in the cost of the E&E asset.

The carrying value of all categories of E&E assets are reviewed at least annually by management for indicators that the recoverable amount may be less than the carrying value. When a project is deemed to no longer have commercially viable prospects to the Company, E&E expenditures in respect of that project are deemed to be impaired. As a result, those E&E expenditures, in excess of estimated recoveries, are written off to the consolidated statement of comprehensive loss.

e. Reclamation obligations

The Company records provisions for reclamation and remediation based on the best estimate of costs for reclamation activities that it is required to undertake, and the liability is recognized at fair value at the time such environmental disturbance occurs. The liability is accreted over time through periodic charges to the consolidated statements of comprehensive loss. In addition, the reclamation cost is capitalized as part of the mineral property's carrying value and, upon commercial production, will be amortized over the life of the related mineral property. The capitalized amount is depreciated on the same basis as the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation costs. Significant judgments and estimates are involved in forming expectations of the amounts and timing of future closure and reclamation costs. Changes in reclamation estimates are reflected in profit or loss in the period an estimate is revised. Estimated reclamation obligations are based on when spending for an existing disturbance is expected to occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation for each of its exploration properties.

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

3. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

e. Reclamation obligations (continued)

Based on the level of disturbance, the nature and timing of reclamation activity, and potential reclamation activities, the Company has not recognized any provision for reclamation as at September 30, 2025.

f. Impairment of non-financial assets

At the end of each reporting period, the carrying amounts of the assets are reviewed to determine whether there is any indication that those assets are impaired. Impairment is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. The impairment loss is recognized in the profit or loss in the period the impairment is determined. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount had no impairment loss been recognized. A reversal of an impairment loss is recognized in profit or loss.

g. Provisions and constructive obligations

Provisions are recorded when a present legal or constructive obligation exists as a result of past events where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the statement of financial position date, taking into account the risk and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

h. Share capital

Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. Common shares, share purchase warrants, stock options to purchase common shares, and finders fee warrants awarded in connection with financings are classified as equity instruments. Incremental costs directly attributable to the issue of new common shares are recognized as a deduction from equity.

Proceeds received on the issuance of units, consisting of common shares and warrants, are first allocated to the fair value of the common shares with any residual value then allocated to warrants. The fair value of the common shares is determined by the closing quoted bid price on the issuance date. The balance, if any, is allocated to the attached warrants and recorded in reserves.

i. Share-based payments

Where equity-settled stock options are awarded to employees, the fair value of the stock options at the date of grant is recognized in profit or loss over the vesting period. Performance vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognized over the vesting period is based on the number of stock options that eventually vest. Non-vesting conditions and market vesting conditions are factored into the fair value of the stock options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether these vesting conditions are satisfied. The cumulative expense is not adjusted for failure to achieve a market vesting condition or where a non-vesting condition is not satisfied.

Where the terms and conditions of stock options are modified before they vest, the increase in the fair value of the stock options, measured before and after the modification, is also charged to the profit or loss over the remaining vesting period.

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

3. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

i. Share-based payments (continued)

Where equity instruments are granted to non-employees, they are recorded at the fair value of the goods or services received in profit or loss, unless they are related to the issuance of common shares. Amounts related to the issuance of common shares are recorded as a reduction of share capital. When the value of goods or services received in exchange for the share-based payment cannot be reliably estimated, the fair value is measured by use of a valuation model. The expected life used in the model is adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioral considerations.

All equity-settled share-based payments are reflected in the reserve, until exercised. Upon exercise, common shares are issued from treasury and the amount reflected in reserves is credited to share capital, adjusted for any consideration paid. Where a grant of stock options is cancelled or settled during the vesting period, excluding forfeitures when vesting conditions are not satisfied, the Company accounts for the cancellation as an acceleration of vesting and recognizes the amount that otherwise would have been recognized for services received over the remainder of the vesting period. Any payment made to the employee on the cancellation is accounted for as the repurchase of an equity interest, except to the extent the payment exceeds the fair value of the equity instrument granted, measured at the repurchase date. Any such excess is recognized as an expense.

j. Income taxes

Provision for income taxes consists of current and deferred tax expense. Income tax expense is recognized in profit or loss except to the extent that it relates to a business combination or items recognized either in other comprehensive income or directly in equity.

Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is not recognized for temporary differences associated with the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable income or loss and temporary differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse based on the laws that have been enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

k. Loss per share

Basic loss per common share is computed by dividing the net loss for the year by the weighted average number of common shares outstanding for the period. Diluted per share amounts reflect the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted to common shares. The treasury stock method is used to determine the dilutive effect of stock options, finders fee warrants, and other dilutive instruments. Under the treasury stock method, the weighted average number of common shares outstanding used in the calculation of the diluted per share amount assumes that the deemed proceeds received from the exercise of stock options, warrants and their equivalents would be used to repurchase common shares at the average market price during the period. When a loss is incurred during the period, basic and diluted loss per share are the same as the exercise of stock options and warrants is considered to be anti-dilutive.

---

INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

3. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

l. Comprehensive loss

Comprehensive loss includes net income or loss and other comprehensive income or loss. Other comprehensive income or loss may include holding gains and losses on available-for-sale securities, gains and losses on certain derivative instruments and foreign gains and losses from self-sustaining foreign operations.

m. New accounting standards and interpretations

The Company has performed an assessment of new standards issued by the IASB that are not yet effective and has determined that any new standards that have been issued would have no or an immaterial impact on the Company’s consolidated financial statements.

IFRS 18 Presentation and Disclosure in Financial Statements – IFRS 18 introduces three sets of new requirements to give investors more transparent and comparable information about companies’ financial performance for better investment decisions.

1. Three defined categories for income and expenses – operating, investing or financing – to improve the structure of the income statements, and require all companies to provide new defined subtotals, including operating profit;
2. Requirement for companies to disclose explanations of management-defined performance measures (MPMs) that are related to the income statement; and
3. Enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes.

This new standard is effective for reporting periods beginning on or after January 1, 2027. The Company will be evaluating the impact of the above amendments on its Financial Statements

4. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES, AND RISKS

The preparation of the Financial Statements requires management to make certain estimates, judgments and assumptions that affect the application of policies and reported amounts of assets and liabilities at the date of the financial statements and the reported expenses during the period.

The Company bases its assumptions and estimates on parameters available when the Financial Statements were prepared, and to the extent possible, bases its estimates on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Existing circumstances and assumptions about future developments, however, may change due to market change or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur; uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Although management used historical experience and its best knowledge of the amount, events, or actions to form the basis for judgements and estimates, actual results could differ from these estimates.

---

INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

4. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES, AND RISKS (continued)

Judgments

In the process of applying the Company’s accounting policies, management has made the following judgments, which has the most significant effect on the amounts recognized in the Financial Statements.

i) Going concern assumption: In determining whether it is appropriate for the Company to be reported as a going concern, management exercises judgement, having undertaken appropriate enquiries and having considered the business activities, principal risks and uncertainties.

ii) Functional currency: Determination of functional currency involves certain judgments to determine the primary economic environment and the parent entity reconsiders the functional currency of its entities if there is a change in events and conditions which determined the primary economic environment.

iii) Accounting for mineral property interests: The Company capitalizes mineral property acquisition and exploration costs which are to be amortized when production is attained or the balance thereof written off should the property be disproven through exploration or abandoned. The type and amount of exploration property acquisition and transaction costs eligible for capitalization can involve judgement to determine whether or not particular expenditures benefit and enhance the mineral property interests.

The carrying value of the Company’s exploration and evaluation assets is then also reviewed by management at least annually, or whenever events or circumstances indicate that its carrying value may not be recovered. If impairment is determined to exist, a formal estimate of the recoverable amount is performed and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, include: (i) provision for environmental rehabilitation; (ii) inputs used in the valuation of share-based payments; and (iii) the recognition of deferred tax assets.

The Company provides for such differences, where known, based on management’s best estimate of the probable outcome of these matters.

Further information on management’s judgments, estimates and assumptions and how they impact the various accounting policies are described in the relevant notes to these Financial Statements

5. FINANCIAL RISKS AND CAPITAL MANAGEMENT

The Company is exposed in varying degrees to a variety of financial instrument related risks. The type of risk exposure and the way in which such exposure is managed is provided as follows:

Credit Risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash held in bank accounts. Cash is deposited in bank accounts held with major banks in Canada and Australia. The risk is managed by using major banks that are high credit quality financial institutions as determined by rating agencies. The Company has secondary exposure to credit risk on its receivables. This risk is minimal as receivables consist primarily of interest accruals, advances and refundable goods and services taxes.

---

INFLECTION RESOURCES LTD.
(An Exploration Stage Company)
Notes to the Consolidated Financial Statements
For the Years Ended September 30, 2025 and 2024
(Expressed in Canadian dollars)

5. FINANCIAL RISKS AND CAPITAL MANAGEMENT (continued)

Foreign Exchange Risk

The significant market risk to which the Company is exposed is foreign exchange risk. The results of the Company's operations are exposed to currency fluctuations. To date, the Company has raised funds entirely in Canadian dollars. The majority of the Company's mineral property expenditures are incurred in Australian dollars with a substantial portion being financed in Australian dollars by a third party (Note 7(a)). The fluctuation of the Canadian dollar in relation to the Australian dollar has an impact upon the financial results of the Company.

At September 30, 2025, the Company was exposed to currency risk for its Canadian dollar equivalent of financial assets and liabilities denominated in currencies other than Canadian dollars as follows:

	Stated in Canadian Dollars
	Held in		Total
	Australian Dollars	United States Dollars
Cash	$ 644,723	$ 2,111	$ 646,834
Accounts payable and accrued liabilities	(119,366)	-	(119,366)
Advance for exploration	(4,807)	-	(4,807)
Net financial assets, September 30, 2025	$ 520,550	$ 2,111	$ 522,661
Cash	$ 1,107,550	$ 2,158	$ 1,109,708
Receivables	1,845	-	1,845
Accounts payable and accrued liabilities	(403,312)	-	(403,312)
Advance for exploration	(130,981)	-	(130,981)
Net financial assets, September 30, 2024	$ 575,102	$ 2,158	$ 577,260

Based upon the above net exposure as at September 30, 2025 and assuming all other variables remain constant, a 10% depreciation or appreciation of the Canadian dollar relative to the Australian and US dollars could result in a decrease/increase of approximately $52,000 in the Company's net losses.

The Company has not entered into any derivative contracts to manage foreign exchange risk at this time. A significant portion of the Company's cash balance may be held in AUD in any given period.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows from operations and anticipated investing and financing activities. The Company's objective in managing liquidity risk is to maintain sufficient readily available reserves in order to meet its liquidity requirements. The Company assessed its liquidity risk as high.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. As the only interest-bearing financial instruments held by the Company consist of either higher-interest savings accounts, or short-term Guaranteed Investment Certificates held with major banks in Canada and Australia, the Company is not exposed to any significant interest rate risk.

---

INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

5. FINANCIAL RISKS AND CAPITAL MANAGEMENT (continued)

Capital Management

The Company defines its capital as shareholders' equity. It manages its capital structure and makes adjustments to it based on the funds available to the Company in order to support future business opportunities. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company is dependent upon external equity financings. In order to carry future projects and pay for administrative costs, the Company will spend its existing working capital and raise additional funds as needed. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. The approach to capital management has not changed since the prior year, and the Company is not subject to externally imposed capital requirements.

6. REFUNDABLE SECURITY DEPOSITS

As at September 30, 2025, the Company's refundable security deposits, each representing a mineral property exploration license ("EL"), including permitted disturbance thereon, are held with the Governments of New South Wales, as follows:

	Total
Balance, September 30, 2023	$ 251,361
Additions	4,486
Balance, September 30, 2024	255,847
Recoveries	(18,003)
Balance, September 30, 2025	$ 237,844

Refundable security deposits consist of the basic security deposit required on issuance of each EL, as well as additional deposits for environmental related bonding amounts. Basic security deposits are each valued at AUD 10,000 ($9,155) per EL held. Environmental related bonding amounts are based on the respective EL size and levels of disturbance contemplated under the specific exploration permit. From time to time the Company may increase the bonding it has in place, or, pursuant to having completed requisite remediation, see funds returned.

---

INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

7. EXPLORATION AND EVALUATION ("E&E") ASSETS

The carrying values of the Company's exploration and evaluation assets including cumulative expenditures incurred, net of recoveries and management fees, government grants and impairment charges, are as follows:

	NSW Project and Other	Carron Project	Total
Acquisition Costs:
Balance, September 30, 2023 and 2024	$ 525,413	$ 95,214	$ 620,627
Shares issued (Note 8)	312,500	-	312,500
Balance, September 30, 2025	837,913	95,214	933,127
Deferred Exploration Expenditures:
Balance, September 30, 2023	7,068,180	1,100,032	8,168,212
Drilling and assays	4,992,576	319,213	5,311,789
Geological services (Note 9)	882,180	70,850	953,030
Claim maintenance fees	664,333	15,110	679,443
Administration and maintenance	175,333	1,674	177,007
Geophysics	194,221	-	194,221
Equipment	1,515	-	1,515
Depreciation of equipment	(15,003)	-	(15,003)
Foreign exchange	(2,412)	(265)	(2,677)
Recovery from government grants	(40,822)	(163,124)	(203,946)
Recovery from farm in agreement	(6,825,508)	-	(6,825,508)
Recovery from management fee receipts	(682,551)	-	(682,551)
Balance, September 30, 2024	6,412,042	1,343,490	7,755,532
Drilling and assays	2,736,567	-	2,736,567
Geological services (Note 9)	1,281,646	-	1,281,646
Claim maintenance fees	721,634	-	721,634
Administration and maintenance	224,129	-	224,129
Geophysics	251,581	-	251,581
Equipment	1,704	-	1,704
Shares issued from AngloGold conversion, loss of the derivative liability of $133,450 (Note 8)	3,317,904	-	3,317,904
Depreciation of equipment	(15,353)	-	(15,353)
Recovery from farm in agreement	(4,675,534)	-	(4,675,534)
Recovery from management fee receipts	(467,553)	-	(467,553)
Balance, September 30, 2025	9,788,767	1,343,490	11,132,257
Write-Off of Mineral Property Interest
Balance, September 30, 2023	-	-	-
Write-offs	(281,242)	(1,438,704)	(1,719,946)
Balance, September 30, 2024	(281,242)	(1,438,704)	(1,719,946)
Write-offs	(231,090)	-	(231,090)
Balance, September 30, 2025	(512,332)	(1,438,704)	(1,951,036)
Exploration and evaluation assets:
Balance, September 30, 2024	$ 6,656,213	$ -	$ 6,656,213
Balance, September 30, 2025	$ 10,114,348	$ -	$ 10,114,348

---

INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

7. EXPLORATION AND EVALUATION ("E&E") ASSETS (continued)

a) New South Wales Property (NSW Property) and Other

The Company holds 100% interest in the NSW Property located in the Lachlan Fold Belt region of New South Wales, Australia (the "LF Belt"). The NSW Property includes (i) multiple ELs acquired by the Company in 2018 (the "Acquired NSW Licenses"), (ii) two ELs (the "Romardo Licenses") acquired in February 2020 of which one EL was relinquished in May 2025, and (iii) additional ELs staked by the Company directly. The Company has also recorded the value of certain depreciable vehicles and equipment in the carrying value of the NSW Property, reflective of the use of these assets, and the benefit to the project.

There is a 2% net smelter return royalty ("NSR") on the Acquired NSW Licenses payable on future production from the NSW Property, of which the Company may purchase 1% for AUD 3 million at any time. The Romardo Licenses are subject to a 2% NSR of which the Company may purchase 1% for AUD 2 million at any time, and the Company has the right of first refusal to purchase any royalty interest offered for sale by consideration payable in cash.

In addition, the Company has the following contingent payments payable, in cash or common shares, upon attainment of certain milestones at the Romardo Licenses:

(i) AUD 500,000 upon completion of a pre-feasibility study;
(ii) AUD 2,000,000 upon completion of a feasibility study; and
(iii) AUD 6,000,000 upon the Company’s decision to commence construction of a commercial mine.

In June 2023, the Company signed a Definitive Farm-in Agreement (the "Farm In Agreement") with AngloGold Ashanti Australia Limited ("AngloGold") that outlines the terms under which AngloGold may earn into a number of the Company’s copper-gold projects in New South Wales, Australia. Summary highlights of the Farm In Agreement are as follows:

Phase I:

AngloGold had the option to fund up to AUD10 million on exploration expenditures across a wide range of different intrusive related exploration targets within a 36-month period following the execution of the Farm-in Agreement. AngloGold had committed to fund minimum expenditures of AUD 6,000,000. If Phase I Expenditures of AUD 10,000,000 were not incurred within the required time frame, then the Farm-in Agreement shall terminate and no interest in any of the properties will be earned by AngloGold. The Company received a 10% management fee for being the operator of Phase I.

Upon completion of Phase I exploration expenditures of AUD10 million, AngloGold had the option to convert the expenditures into common shares of the Company equal to a maximum of 9.9% of the then issued outstanding common shares of the Company, post share issuance, at the time of completion of Phase I. The deemed price of the shares shall be calculated using the 30-day VWAP and the number to be issued shall be capped at the Canadian dollar equivalent of AUD 10,000,000.

If the number of shares issued equaled less than 9.9% of the Company’s outstanding shares, then AngloGold retained the further option to purchase additional common shares from the treasury of the Company at a 10% premium to the 30-day VWAP, up to a combined maximum ownership interest of 9.9% of the then-outstanding common shares. AngloGold exercised its option to convert expenditures into shares and the Company issued 11,133,399 shares to AngloGold (Note 8).

20

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

7. EXPLORATION AND EVALUATION ("E&E") ASSETS (continued)

a) New South Wales Property (NSW Property) and Other (continued)

Phase II:

AngloGold may elect to earn an initial 51% interest in up to five Designated Projects individually by funding expenditures of AUD 7,000,000 on each project within 36 months. If AngloGold fails to complete the Phase II earn-in expenditure for a given Designated Project, the Company will retain 100% ownership with no interest earned by AngloGold.

Phase III:

AngloGold may elect to earn an additional 14% interest in each Designated Project individually, for a total 65% interest, by funding additional expenditures of AUD 20,000,000 per Designated Project within 24 months following completion of Phase II. If AngloGold initiates but does not complete Phase III, then its ownership interest in the Designated Project will revert to 49%, which the Company retains the right to purchase at a mutually agreed price or for fair value if a price cannot be mutually agreed within a specified period.

Phase IV:

AngloGold retains an additional right to earn a further 10% interest in each Designated Project, bringing its potential ownership interest to 75%, by completing the following:

• Delivering to the Company a Pre-Feasibility Study in accordance with the CIM Definition Standards on Mineral Resources and Ore Reserves based on a minimum 2,000,000 ounces of gold or gold-copper equivalent Measured and Indicated resources within 36 months after AngloGold provides notice to move to Phase IV; and,
• Granting to the Company a 2% NSR on the applicable Designated Project; provided, however, that if the applicable Designated Project has any existing underlying royalties, the Company will be granted a 1% NSR. AngloGold will have the right to buy back 0.5% of any 2% NSR and 0.25% of any 1% NSR in respect of all or a portion of the respective Designated Project for fair value at any time.

In May 2024, AngloGold elected to designate the Company’s Duck Creek project as a Phase II project pursuant to the terms of the AngloGold Farm-in Agreement. In February 2025, Phase I was completed upon the incurrence of exploration expenditures of AUD 10,000,000. Then in March 2025, AngloGold designated three additional projects as Phase II projects, namely the Company’s Crooked Creek, Nyngan and Trangie projects.

The Company continues to operate the Phase II exploration programs for a 10% management fee, although AngloGold retains the right to take over as project manager at any time.

Upon completion of Phase I of the Farm In Agreement, in March 2025 AngloGold provided notice to exercise its option to convert its exploration expenditures into a 9.9% interest in the Company whereby the Company issued 11,133,399 shares to AngloGold at a price of $0.31 per share for total fair value of $3,451,354 on April 1, 2025.

21

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

7. EXPLORATION AND EVALUATION ("E&E") ASSETS (continued)

a) New South Wales Property (NSW Property) and Other (continued)

Cash call receipts, exploration expenditures and management fees earned for Phases I and II during the years ended September 30, 2024 and 2025 along with the unspent funds at the end of each period are as follows:

	Phase I	Phase II	Total
Balance, September 30, 2023	$ 208,433	$ -	$ 208,433
Add:
Cash call receipts	5,847,281	1,572,312	7,419,593
Less:
Exploration expenditures	(5,484,461)	(1,341,047)	(6,825,508)
Management fees	(548,446)	(134,105)	(682,551)
Foreign exchange	7,102	3,912	11,014
Balance, September 30, 2024	29,909	101,072	130,981
Add:
Cash call receipts	1,034,557	3,986,935	5,021,492
Less:
Exploration expenditures	(966,731)	(3,708,803)	(4,675,534)
Management fees	(96,673)	(370,880)	(467,553)
Foreign exchange	(1,062)	(3,517)	(4,579)
Balance, September 30, 2025	$ -	$ 4,807	$ 4,807

Derivative liability:

AngloGold's option to acquire a 9.9% interest in the Company upon the completion of Phase I was determined to be a derivative liability as it will be settled with a variable number of shares. The Geometric Brownian Motion simulation model was used to determine future shares prices of the Company and the Monte Carlo simulation to determine the fair value of the derivative liability. As at March 31, 2025, the date before exercise and as of September 30, 2024, the fair value of the option and the underlying assumptions are as follows;

	March 31, 2025	September 30, 2024
Fair value of option	$ 133,450	$ 33,450
Expected risk free interest rate	2.52%	3.03%
Expected stock price volatility	87%	91.50%
Expected option life in years	0.82	1.70
Fair value assigned	$ 133,450	$ 33,450
Fair value allocated to exploration and evaluation assets on exercises (Note 7)	$ (133,450)	$ -
Derivative liability	$ -	$ 33,450

(an increase or decrease of 10% in the expected volatility would not have a significant impact on the fair value of the liability)

During the year ended September 30, 2025, AngloGold provided notice to exercise its option and the shares were issued on April 1, 2025 (Note 8).

---

INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

7. EXPLORATION AND EVALUATION ("E&E") ASSETS (continued)

a) New South Wales Property (NSW Property) and Other (continued)

In June 2025, the Company entered into agreements with subsidiaries of Newmont Corporation ("Newmont") to acquire an 100% interest in a portfolio of Australian copper-gold exploration projects in New South Wales and the Northern Territory.

During the year ended September 30, 2025, the Company recognized an impairment of $231,090 (2024 - $1,719,946) for not renewing the areas of interest in with the Northern Territory as no further exploration activities will be planned.

Summaries of the remaining agreements are as follows:

Bell River Agreement Terms:

In June 2025, the Company acquired a 100% interest in the Bell River project by issuance of 1,000,000 common shares valued at $250,000 (Note 8).

The Company also agreed to pay Newmont a one-time payment of AUD 2,500,000 contingent upon completion of a Joint Ore Reserve Committee or NI43-101 compliant Pre-Feasibility Study and AUD 5,000,000 contingent upon commencement of commercial production.

The contingent considerations will be recorded at the time of the contingency is satisfied as there is no obligation to make the payment until such time.

Newmont shall retain a 2% net smelter return ("NSR") royalty on the project, of which the Company may purchase 1% NSR for AUD5,000,000 at any time.

Tennant East Agreement Terms:

In June 2025, the Company acquired a 100% interest in the Tennant East project by issuance of 250,000 common shares valued at $62,500, and reimbursement of the 2025-2026 tenement renewal fees.

Newmont shall retain a 1.5% NSR on the project, of which the Company may purchase 0.5% NSR for fair market value after completion of a NI43-101 compliant Pre-Feasibility Study.

8. SHARE CAPITAL

a) Authorized:

Unlimited number of common shares without par value.

b) Share Issued and Outstanding:

Issued and outstanding:

As at September 30, 2025, 113,908,569 common shares (2024 – 101,325,170 common shares) outstanding.

(i) During the year ended September 30, 2025:

i) AngloGold provided notice to exercise its option to convert its exploration expenditures into a 9.9% interest in the Company whereby the Company was obligated to issue 11,133,399 shares to AngloGold which were issued on April 1, 2025. Note 7(a) provides further details.

---

INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

8. SHARE CAPITAL (continued)

b) Share issued and Outstanding: (continued)

ii) issued 200,000 common shares pursuant to exercise of options for gross proceeds of $40,000, and accordingly, the fair value of $22,407 was transferred from reserves to share capital.

iii) issued 1,000,000 common shares valued at $250,000 pursuant to the acquisition of Bell River Project (Note 7).

iv) issued 250,000 common shares valued at $62,500 pursuant to the acquisition of Tennant East Project (Note 7).

(ii) Year ended September 30, 2024

During the year ended September 30, 2024, warrants for 5,942,500 common shares with an exercise price of $0.15 per share were exercised for gross proceeds of $891,375. Also stock options for 325,000 common shares with an exercise price of $0.12 per share and fair value of $24,336 were exercised for gross proceeds of $39,000. Share issuance costs of $8,726 were incurred in fiscal 2024.

c) Stock Options

The Company has a stock option plan under which it is authorized to grant stock options of up to a maximum of 10% of the issued and outstanding common shares to executive officers, directors, employees and consultants enabling the holder to acquire common shares. Vesting provisions are at the discretion of the Board of Directors. In the absence of a vesting schedule, such stock options shall vest immediately.

During the year ended September 30, 2024, the following stock options were granted:

• On March 27, 2024, 2,950,000 stock options were granted to directors, officers, employees and certain consultants to the Company. The stock options have an exercise price of $0.20 per share, vest six months after the date of the grant, and expire on March 27, 2029; and
• On July 10, 2024, 200,000 stock options were granted to a consultant. The stock options have an exercise price of $0.20 per share and expiry date of July 10, 2027, and vest immediately on grant date.

The continuity of stock options for the years ended September 30, 2025 is as follows:

	September 30, 2025		September 30, 2024
	Number Of Options	Weighted Average exercise price	Number Of Options	Weighted Average exercise price
Outstanding balance, beginning of year	8,665,000	$0.20	8,350,000	$0.20
Granted	-	-	3,150,000	$0.20
Exercised	(200,000)	$0.20	(325,000)	$0.12
Cancelled	-	-	(700,000)	$0.25
Expired	(1,840,000)	$0.30	(1,810,000)	$0.20
Outstanding balance, end of year	6,625,000	$0.17	8,665,000	$0.20

The average market price on the date of exercise was $0.26 (2024 - $0.53) of the shares.

---

INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

8. SHARE CAPITAL (continued)

c) Stock Options (continued)

The following table summarizes information about stock options outstanding and exercisable at September 30, 2025:

Expiry Date	Exercise Price	Outstanding at September 30, 2025	Exercisable at September 30, 2025
November 24, 2025*	$0.40	100,000	100,000
March 8, 2026	$0.34	200,000	200,000
March 2, 2027	$0.12	1,650,000	1,650,000
December 21, 2027	$0.12	1,525,000	1,525,000
June 1, 2028	$0.22	200,000	200,000
March 27, 2029	$0.20	2,950,000	2,950,000
		6,625,000	6,625,000

• subsequently expired

For the purposes of estimating the fair value of options using the Black-Scholes Option Pricing Model, certain assumptions are made such as expected dividend yield, volatility of the market price of the Company's shares, risk-free interest rates and expected average life of the stock options.

During the year ended September 30, 2025, the Company recognized $Nil (2024 - $461,109) in share-based payments for the stock options vested during the period. The value is captured in the equity reserves account until such time as the stock options are exercised, upon which the corresponding amount will be transferred to share capital.

The Company applies the fair value method in accounting for its stock options applying the Black-Scholes Option Pricing Model using the following estimates for stock options awarded in the respective periods.

	September 30, 2025	September 30, 2024
Risk-free interest rate	-	3.41%
Expected dividend yield	-	0%
Expected stock price volatility	-	114.00%
Expected option life in years	-	4.87

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

8. SHARE CAPITAL (continued)

d) Warrants

At September 30, 2025, the Company had outstanding warrants as follows:

	September 30, 2025		September 30, 2024
	Number Of Warrants	Weighted Average exercise price	Number Of Warrants	Weighted Average exercise price
Outstanding balance, beginning of year	3,768,300	$0.40	20,038,300	$0.20
Exercised	-	-	(5,942,500)	$0.15
Expired	(3,768,300)	$0.40	(10,327,500)	$0.15
Outstanding balance, end of year	-	-	3,768,300	$0.40

9. RELATED PARTY TRANSACTIONS

In addition to the officers and directors of the Company ("key management personnel"), the Company's related parties include (i) its subsidiary; (ii) officers and directors' dependent; and (iii) those legal entities which share certain common directors noted below to whom compensation is paid.

Key management personnel compensation is comprised of the following:

	Years ended September 30,		Net balance payable September 30,
	2025	2024	2025	2024
Key management compensation:
Executive salaries and benefits (1)	$ 329,978	$ 307,400	$ -	$ -
Geological consulting (1)	270,039	247,622	13,390	20,635
Directors' fees	216,000	207,532	25,491	39,001
Share-based payments	-	365,731	-	-
	$ 816,017	$ 1,128,285	$ 38,881	$ 59,636
Net office, sundry, rent and salary allocations reimbursed to companies sharing certain common Directors (2)	$ 187,468	$ 144,171	$ 21,577	$ 8,535

(1) Includes key management compensation and geological consulting which are included in exploration and evaluation assets, employee remuneration and property investigation, if any.
(2) These companies include Headwater Gold Inc., NewQuest Capital Inc. and Red Canyon Resources Ltd.

The above related party transactions are incurred in the normal course of business and on a cost recovery basis. Amounts payable to related parties are unsecured non-interest bearing with no specific terms of repayment.

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

10. SEGMENTED INFORMATION

Reportable segments are those operations whose operating results are reviewed by the chief operating decision maker, being the individual(s) at the Company making decisions about resources to be allocated to a particular segment, and assessing performance provided those operations pass certain quantitative thresholds.

The Company undertakes administrative activities in Canada, and is engaged in the acquisition, exploration, and evaluation of certain mineral property interests in Australia. Accordingly, the Company's operations are in two geographic and only one commercial segments. The Company is in the exploration stage and accordingly, has no reportable segment revenues. Mineral property interests and refundable security deposits are held in Australia, and cash is held in Canada and Australia.

The net loss is distributed by geographic segment per the table below:

	Years ended September 30,
	2025	2024
Canada	$ 862,474	$ 1,157,796
Australia	193,560	1,741,497
	$ 1,056,034	$ 2,899,293

The Company's assets are distributed by geographic segment, as per the table below:

	September 30, 2025
	Canada	Australia	Total
Current assets	$ 1,377,687	$ 648,198	$ 2,025,885
Refundable security deposits	-	237,844	237,844
Exploration and evaluation assets		10,114,348	10,114,348
Total assets	$ 1,377,687	$ 11,000,390	$ 12,378,077
	September 30, 2024
---	---	---	---
	Canada	Australia	Total
Current assets	$ 2,057,045	$ 1,112,170	$ 3,169,215
Refundable security deposits	-	255,847	255,847
Exploration and evaluation assets	-	6,656,213	6,656,213
Total assets	$ 2,057,045	$ 8,024,230	$ 10,081,275

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

11. INCOME TAXES

A reconciliation of the expected income tax recovery to the actual income tax recovery is as follows:

	September 30,
	2025	2024
Loss for the year	$ (1,056,034)	$ (2,899,291)
Canadian statutory tax rate	27.0%	27.0%
Income tax benefit computed at statutory rates	(285,129)	(782,809)
Permanent differences	(12,012)	127,919
Prior year true up	187,713	(107,777)
Expiry of tax pools on dissolution	775,317	-
Change in valuation allowance	(665,890)	762,667
	$ -	$ -

The significant components of deferred income tax assets and liabilities as at September 30, 2025 and 2024, after applying enacted income tax rates, are as follows:

	September 30,
	2025	2024
Non-operating loss carry-forward	$ 1,748,113	$ 1,682,526
Share issuance costs	8,735	20,902
Exploration and evaluation costs	(126,829)	592,481
Unrecognized deferred income tax assets	(1,630,019)	(2,295,909)
Unrecognized deferred tax assets	$ -	$ -

The Company has net operating losses which may be carried forward to apply against future year taxable income, subject to the final determination by taxation authorities, expiring in the following years:

Year	Non-Capital Losses
2037	$ 693
2038	95,051
2039	401,410
2040	719,600
2041	1,248,306
2042	1,092,229
2043	1,291,304
2044	957,199
2045	667,702
	$ 6,473,494

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INFLECTION RESOURCES LTD.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

For the Years Ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

12. SUBSEQUENT EVENT

Subsequent to September 30, 2025, the Company granted 4,000,000 stock options were granted to directors, officers, employees and advisors to the Company. The stock options have an exercise price of $0.30 per share, and expire on December 22, 2030.

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