Leading Edge Materials Corp. — Interim / Quarterly Report 2025

Jun 20, 2025

LEADING EDGE MATERIALS CORP.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED
APRIL 30, 2025

(Unaudited - Expressed in Canadian Dollars)

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NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

In accordance with National Instrument 51-102 Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed consolidated interim financial statements, they must be accompanied by a notice indicating that the condensed consolidated interim financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's auditors have not performed a review of these condensed consolidated interim financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

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

LEADING EDGE MATERIALS CORP.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited - Expressed in Canadian Dollars)

	Note	April 30, 2025 $	October 31, 2024 $
ASSETS
Current assets
Cash		1,288,821	3,460,217
GST/VAT and other receivables		110,855	304,568
Prepaid expenses		93,582	114,471
Investments	3	15,918	22,550
Total current assets		1,509,176	3,901,806
Non-current assets
Exploration and evaluation assets	4	21,021,766	19,892,252
Property, plant and equipment	5	5,724,012	5,453,089
Reclamation deposit	6	106,820	96,569
Total non-current assets		26,852,598	25,441,910
TOTAL ASSETS		28,361,774	29,343,716
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities		317,662	564,120
Non-current liabilities
Provision for site restoration	6	5,436,520	5,121,374
Property acquisition obligation	4(a), 5	573,413	520,480
Total non-current liabilities		6,009,933	5,641,854
TOTAL LIABILITIES		6,327,595	6,205,974
SHAREHOLDERS' EQUITY
Share capital	7	63,727,686	63,697,686
Share-based payments reserve	7(d)	9,507,535	8,792,714
Deficit		(51,201,042)	(49,352,658)
TOTAL SHAREHOLDERS' EQUITY		22,034,179	23,137,742
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		28,361,774	29,343,716

Nature of Operations - Note 1

Events after the Reporting Period - Note 14

These condensed consolidated interim financial statements were approved for issue by the Board of Directors on June 20, 2025 and are signed on its behalf by:

/s/ Eric Krafft
Eric Krafft
Director

/s/ Daniel Major
Daniel Major
Director

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LEADING EDGE MATERIALS CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited - Expressed in Canadian Dollars)

	Notes	Three Months Ended April 30,		Six Months Ended April 30,
		2025 $	2024 $	2025 $	2024 $
Expenses
Accretion of provision for site restoration	6	32,218	31,280	64,436	62,560
Corporate development		27,232	53,631	110,506	99,141
Depreciation		12,754	7,012	24,567	13,382
Directors and officer's compensation	8(a)	78,270	46,385	155,779	92,804
Research, development and general exploration	4	77,449	94,017	139,957	211,367
Accounting and audit	8(b)	40,690	57,074	112,237	109,342
General and administration		20,642	12,390	57,853	27,312
Listing and regulatory costs		56,994	45,115	106,939	90,118
Operations		60,957	89,947	138,876	156,225
Salaries, compensation and benefits		41,695	42,221	79,220	88,787
Professional fees		4,886	14,607	10,856	30,868
Share based compensation	8(a)	585,529	349,923	714,821	509,348
Travel		31,086	20,143	50,392	33,108
		1,070,402	863,745	1,766,439	1,524,362
Loss before other items		(1,070,402)	(863,745)	(1,766,439)	(1,524,362)
Other items
Interest income		12,286	20,305	37,762	45,097
Foreign exchange gain/(loss)		(117,063)	(5,754)	(115,373)	30,217
Mark to market adjustment loss		(5,969)	(10,662)	(6,632)	(96,736)
Other Income		1,980	327	2,298	327
		(108,766)	4,216	(81,945)	(21,095)
Net loss and comprehensive loss		(1,179,168)	(859,529)	(1,848,384)	(1,545,457)
Loss per share - basic and diluted		($0.01)	($0.00)	($0.01)	($0.01)
Weighted average number of common shares outstanding - basic and diluted		232,112,501	190,951,949	232,112,501	189,788,330

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

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LEADING EDGE MATERIALS CORP.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited - Expressed in Canadian Dollars)

Six Months Ended April 30, 2025

	Share Capital		Share-Based Payments Reserve $	Deficit $	Total Equity $
	Number of Shares	Amount $
Balance at October 31, 2024	232,061,949	63,697,686	8,792,714	(49,352,658)	23,137,742
Common shares issued for:
Warrants Exercised	150,000	30,000	-	-	30,000
Share-based compensation	-	-	714,821	-	714,821
Net loss for the period	-	-	-	(1,848,384)	(1,848,384)
Balance at April 30, 2025	232,211,949	63,727,686	9,507,535	(51,201,042)	22,034,179

Six Months Ended April 30, 2024

	Share Capital		Share-Based Payments Reserve $	Deficit $	Total Equity $
	Number of Shares	Amount $
Balance at October 31, 2023	187,262,663	59,220,772	8,016,774	(46,850,300)	20,387,246
Common shares issued for:
Warrants exercised	3,689,286	368,929	-	-	368,929
Share-based compensation	-	-	509,348	-	509,348
Net loss for the period	-	-	-	(1,545,457)	(1,545,457)
Balance at April 30, 2024	190,951,949	59,589,701	8,526,122	(48,395,757)	19,720,066

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

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LEADING EDGE MATERIALS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - Expressed in Canadian Dollars)

	Three Months Ended April 30,		Six Months Ended April 30,
	2025	2024	2025	2024
	$	$	$	$
Operating activities
Net loss for the period	(1,179,168)	(859,529)	(1,848,384)	(1,545,457)
Adjustments for:
Accretion of provision for site restoration	32,218	31,280	64,436	62,560
Depreciation	12,754	7,012	24,567	13,382
Foreign exchange	39,858	(9,142)	42,682	2,710
Mark to market adjustment loss	5,969	10,662	6,632	96,736
Share based compensation	585,529	349,923	714,821	509,348
Changes in non-cash working capital items:
GST/VAT and other receivables	48,479	(34,504)	193,713	20,054
Prepaid expenses and other	5,309	17,301	20,889	40,580
Accounts payable and accrued liabilities	31,538	(114,302)	(246,458)	(159,287)
Net cash from (used in) operating activities	(417,514)	(601,299)	(1,027,102)	(959,374)
Investing activity
Expenditures on exploration and evaluation assets	(485,862)	(216,538)	(1,129,514)	(497,524)
Additions to property, plant and equipment	(42,456)	(2,913)	(44,780)	(14,912)
Net cash from (used in) investing activity	(528,318)	(219,451)	(1,174,294)	(512,436)
Financing activities
Issuance of common shares	30,000	-	30,000	368,929
Net cash provided by financing activities	30,000	-	30,000	368,929
Net change in cash	(915,832)	(820,750)	(2,171,396)	(1,102,881)
Cash at beginning of the period	2,204,653	2,145,180	3,460,217	2,427,311
Cash at end of the period	1,288,821	1,324,430	1,288,821	1,324,430

Supplemental cash flow information - See Note 11

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

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

1. Nature of Operations

The Company is a Canadian public company primarily focused on developing a portfolio of critical raw material projects located in the European Union. The portfolio of projects includes the 100% owned Woxna Graphite mine (Sweden), 100% owned Norra Kärr HREE project (Sweden) and the 51% owned Bihor Sud Nickel Cobalt exploration alliance (Romania). The Company's common shares trade on the TSX Venture Exchange (the "TSXV") under the symbol "LEM", on the OTCQB under the symbol "LEMIF", on NASDAQ First North under the symbol "LEMSE" and on Frankfurt under the symbol "7FL". The Company's principal office is located at 14th Floor 1040 West Georgia Street, Vancouver, BC Canada V6E 4H1.

During the six months ended April 30, 2025 the Company recorded a net loss of $1,848,384 and, as at April 30, 2025, the Company had an accumulated deficit of $51,201,042 and working capital of $1,191,514.

The Company is maintaining the Woxna Graphite Mine in a production-ready state while minimizing holding costs. An internal study completed in early 2022 assessed the potential for restarting operations and upgrading the processing plant to produce high-quality flake graphite concentrate. Work is now underway to update this study, forming the basis of a business plan to support potential project financing, customer prepayments, and access to Swedish or EU public funding.

The Company is developing a Rapid Development Plan ("RDP") for Norra Kärr to enable the earliest possible production of heavy rare earth element (HREE)-rich eudialyte concentrate and industrial mineral nepheline syenite. A phased, small-scale start is under consideration to allow early access to the deposit, initial sales of nepheline syenite, early cash flow, and stockpiling of eudialyte concentrate for future processing. This approach is designed to reduce both risk and environmental impact. On 24 March 2025, the EU announced its first list of Strategic Projects under the Critical Raw Materials Act (CRMA); Norra Kärr was not included. The Company plans to reapply in the next round of applications.

Exploration activities at the Bihor Sud project continued in 2025, supported by the addition of four new geologists in January. Work included underground mapping, diamond drilling, geophysics, core logging, and sampling. The Company's goal is to define a large-scale, mineable mineral resource. Drilling began in gallery G2 in 2025, targeting promising Zinc-Lead-Copper-Silver mineralization. Results to date are encouraging and underscore the project's strong potential for a significant polymetallic discovery.

The Company anticipates that it has sufficient funding to meet anticipated levels of corporate administration and overheads for the ensuing twelve months, however, it will need additional capital to recommence operations at the Woxna Graphite Mine and/or modernize the plant to produce value added production and to fund future development of the Norra Kärr Property. There is no assurance such additional capital will be available to the Company on acceptable terms or at all. In the longer term the recoverability of the carrying value of the Company's long-lived assets is dependent upon the Company's ability to preserve its interest in the underlying mineral property interests, the discovery of economically recoverable reserves, the achievement of profitable operations and the ability of the Company to obtain financing to support its ongoing exploration and development programs, and mining operations.

These consolidated financial statements are prepared in accordance with IFRS Accounting Standards ("IFRS") appropriate for a going concern. The going concern basis of accounting assumes the Company will continue to realize the value of its assets and discharge its liabilities and other obligations in the ordinary course of business. Should the Company be required to realize the value of its assets in other than the ordinary course of business, the net realizable value of its assets may be materially less than the amounts shown in the consolidated financial statements. These consolidated financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that may be necessary should the Company be unable to repay its liabilities and meet its other obligations in the ordinary course of business or continue operations.

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

2. Basis of Preparation

Statement of Compliance

These condensed consolidated interim financial statements have been prepared using accounting policies consistent with IFRS Accounting Standards ("IFRS"), and in accordance with International Accounting Standards ("IAS") 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended October 31, 2024, which have been prepared in accordance with IFRS as issued by the IASB. The accounting policies followed in these condensed consolidated interim financial statements are consistent with those applied in the Company's consolidated financial statements for the year ended October 31, 2024.

Basis of Measurement

The Company's consolidated financial statements have been prepared on the historical cost basis except for the revaluation of certain financial assets and financial liabilities to fair value. The consolidated financial statements are presented in Canadian dollars unless otherwise noted.

Details of the Group

In addition to the Company, the consolidated financial statements include all subsidiaries. Subsidiaries are all entities over which the Company is able, directly or indirectly, to control financial and operating policies, which is the authority usually connected with holding majority voting rights. Subsidiaries are fully consolidated from the date on which control is acquired by the Company. Inter-company transactions and balances are eliminated upon consolidation. They are deconsolidated from the date that control by the Company ceases.

The subsidiaries of the Company are as follows:

Company	Location of Incorporation	Ownership Interest
Flinders Holdings Limited ("Flinders Holdings")	British Columbia	100%
Woxna Graphite AB ("Woxna")	Sweden	100%
Tasman Metals Ltd.	British Columbia	100%
GREENNA Mineral AB (Formerly "Tasman Metals AB")	Sweden	100%
LEM Resources SRL ("LEM Romania")	Romania	51%

3. Investments

Investments held by the Company are as follows:

Particulars	April 30, 2025 $	October 31, 2024 $
132,647 shares in United Lithium Corp. (ULTH)	15,918	22,550
Total	15,918	22,550

The investment in United Lithium Corp will be revalued with level 1 input at each reporting date.

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

1. Exploration and Evaluation Assets

	As at April 30, 2025			As at October 31, 2024
	Acquisition Costs $	Deferred Exploration Costs $	Total $	Acquisition Costs $	Deferred Exploration Costs $	Total $
Graphite Concessions	10,081	4,706	14,787	10,081	4,706	14,787
Norra Kärr	15,402,622	2,297,853	17,700,475	15,402,622	1,932,082	17,334,704
Romania	187,999	3,118,505	3,306,504	187,999	2,354,762	2,542,761
	15,600,702	5,421,064	21,021,766	15,600,702	4,291,550	19,892,252
		Graphite concessions $	Norra Karr $	Romania $	Total $
Balance at October 31, 2023 (as restated)		14,787	16,554,050	1,361,001	17,929,838
Costs
Additions during the year		-	780,654	1,181,760	1,962,414
Balance at October 31, 2024		14,787	17,334,704	2,542,761	19,892,252
Costs
Additions during the period		-	365,771	763,743	1,129,514
Balance at April 30, 2025		14,787	17,700,475	3,306,504	21,021,766

(a) Graphite Concessions

Through Woxna, the Company holds a 100% interest in the Woxna Graphite Mine including the Kringelgruvan concession, The Woxna Graphite Mine is located in Ovanaker Municipality, Gavleborg County, central Sweden. Concessions over Mattsmyra, Gropabo and Mansberg have lapsed. The Company applied for exploration permits over Mattsmyra and Gropabo areas, which were declined. The Company has appealed this decision. The Company has been granted an exploration permit over Mansberg.

In 1993 Woxna entered into agreements under which it acquired:

(i) the Kringelgruvan concession for an initial payment of SEK 150,000 and a further payment of SEK 4,000,000 (the "Property Acquisition Obligation"); and
(ii) the Mattsmyra, Gropabo and Mansberg concessions (the "Graphite Concessions") for an initial payment of SEK 32,500 and a further payment of SEK 1,000,000 on each of the three concessions (the "Additional Consideration").

Payment of the Property Acquisition Obligation and the Additional Consideration is to be made to a Swedish governmental agency and will be based on annual production, at a rate of SEK 20 per metric ton processed and is payable only once accumulated profits have been generated from the individual concessions.

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

4. Exploration and Evaluation Assets (continued)

During fiscal 2014 the technical feasibility and commercial viability of the Kringelgruvan concession and the Woxna Graphite Mine was demonstrated, transitioning the Kringelgruvan concession to the development stage of mining. Accordingly, the costs of the exploration and evaluation assets attributed to the Kringelgruvan concession and the Woxna Graphite Mine were reclassified to property, plant and equipment. See also Note 5.

Management has reviewed the fair value of the asset as at June 30, 2025, and concluded that no impairment write-down is required.

(b) Norra Kärr

The Norra Kärr Property consists of an exploration permit (Norra Kärr nr 1), valid until August 31, 2026, located in south-central Sweden. In August 2024, the Company submitted an application for Strategic Project status under the European Union's Critical Raw Materials Act ("CRMA") and, in December 2024, submitted a new application for an Exploitation Concession ("Bearbetningskoncession") 25-year mining lease to the Mining Inspectorate of Sweden ("Bergsstaten"). A decision on the Bearbetningskoncession is expected in Q4 2025.

(c) Romania Exploration Alliance

In fiscal 2017 the Company and REMAT Group Management SRL ("REMAT") agreed to pursue the investigation and initiation of a prospecting permit application over the Bihor Sud perimeter in Romania. REMAT proceeded to incorporate LEM Resources SRL ("LEM Romania") in fiscal 2017. LEM Romania successfully applied for a non-exclusive prospecting permit (the "Permit") over 25.5 square kilometers in the Bihor area (the "Project"). On August 9, 2018, the Company and REMAT completed a share purchase agreement (the "Share Purchase Agreement") and executed a shareholders' joint venture agreement (the "JV Agreement") whereby the Company acquired an initial 51% ownership interest (the "Initial Interest") in LEM Romania, by issuing 367,006 common shares of the Company at a fair value of $165,152. As LEM Romania had no assets or liabilities at the time of acquisition of the initial interest, the Company recorded the initial consideration as general exploration expenses. A finder's fee of 5% (the "Finder's Fee") related to the Project will be paid in stages.

Under the JV Agreement the Company has agreed to issue to REMAT certain amounts of shares in the Company upon different milestones being achieved (the "Bonus Shares") as per below;

(i) 550,509 shares upon the signing of an exploration license; (Issued on May 27, 2022)
(ii) A maximum of 3,670,062 shares upon identification of any historic Ni-Co and/or Ag-base metal mineral resource estimates at various tonnage thresholds;
(iii) 734,012 shares upon the filing of a NI 43-101 technical report that establishes a mineral resource on any portion of the Project, with an additional maximum 4,404,072 shares subject to such Ni-Co and/or Ag-base metal mineral resource meeting various tonnage thresholds; and
(iv) 917,515 shares upon the filing of a Feasibility Study technical report.

Under the JV Agreement, upon the filing of a Feasibility Study technical report REMAT will transfer 39% in LEM Romania to the Company free of any payment bringing the Company's ownership in LEM Romania to 90%.

On May 17, 2022, the company signed the Bihor Sud Exploration License between LEM Romania and the National Agency for Mineral Resources, accordingly exploration and evaluation costs for the project will now be capitalized. On May 27, 2022, the company issued 550,509 shares to REMAT at a fair value of $178,916 and issued 27,525 common shares at a fair value of $9,083 as Finder's Fee, this consideration is capitalized as acquisition cost for LEM Romania.

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

1. Property, Plant and Equipment

Cost:	Vehicles $	Equipment and Tools $	Building $	Manufacturing and Processing Facility $	Mineral Property Acquisition and Development Costs $	Total $
Balance at October 31, 2023	16,094	290,428	344,139	7,567,878	5,661,423	13,879,962
Addition	-	152,688	-	-	-	152,688
Adjustment to site restoration	-	-	-	-	822,759	822,759
Balance at October 31, 2024	16,094	443,116	344,139	7,567,878	6,484,182	14,855,409
Addition	-	44,780	-	-	-	44,780
Adjustment to site restoration	-	-	-	-	250,710	250,710
Balance at April 30, 2025	16,094	487,896	344,139	7,567,878	6,734,892	15,150,899
Accumulated Depreciation and Impairment:
Balance at October 31, 2023	(5,174)	(266,537)	(188,928)	(3,910,218)	(5,000,000)	(9,370,857)
Depreciation	(1,000)	(1,877)	(28,586)	-	-	(31,463)
Balance at October 31, 2024	(6,174)	(268,414)	(217,514)	(3,910,218)	(5,000,000)	(9,402,320)
Depreciation	(781)	(1,466)	(22,320)	-	-	(24,567)
Balance at April 30, 2025	(6,955)	(269,880)	(239,834)	(3,910,218)	(5,000,000)	(9,426,887)
Carrying Value:
Balance at October 31, 2024	9,920	174,702	126,625	3,657,660	1,484,182	5,453,089
Balance at April 30, 2025	9,139	218,016	104,305	3,657,660	1,734,892	5,724,012

During fiscal 2014 technical feasibility and commercial viability of the extraction of mineral resources at the Woxna Graphite Mine was demonstrated, transitioning the Company to the development stage of mining. Upon the transition, costs on the exploration and evaluation assets attributed to the mine were reclassified to property, plant and equipment. On August 1, 2015, the refurbishment and commissioning of the Woxna Graphite Mine was completed.

During fiscal 2019 management assessed whether there were any indications of impairment of the Company's property, plant and equipment as required by IAS 36. In light of the continued suspension of the operations of the Woxna Graphite Mine, large net loss and the low trading value of the Company's common shares, management concluded there were indications of impairment.

When indications of impairment are determined to be present, IAS 36 requires the Company to estimate the recoverable amount of the Company's property, plant and equipment. The Company did not have sufficient verifiable information to prepare adequately detailed and meaningful calculations of fair value less costs of disposal or value in use. Therefore, the Company applied a value in use method that took into account the Company's financial position and results of operations and operational issues among other factors in determining an estimated recoverable amount. This method indicated that an impairment provision of $8,800,000 was appropriate in fiscal 2019.

As at April 30, 2025 the Company has recognized $573,413 (October 31, 2024 - $520,480) for the Property Acquisition Obligation associated with the Kringelgruvan concession, as described in Note 4(a)(i).

11

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

6. Provision for Site Restoration

Although the ultimate amount of the decommissioning obligation for the Kringelgruvan concession is uncertain, the fair value of this obligation is based on information currently available. Significant closure activities include land rehabilitation, demolition of buildings and mine facilities and other costs. The provision for site restoration may be subject to change based on management's current estimates, changes in remediation technology or changes to the applicable laws and regulations. The total undiscounted amount of estimated cash flows to settle the Company's risk adjusted estimated obligation is SEK 40,000,000 and is expected to be incurred in 2041.

The fair value of the decommissioning obligation was calculated using a discounted cash flow approach based on a risk-free rate of 2.33% (2024 – 2.097%) and an inflation factor of 2.00% (2024 – 2.00%). Settlement of the obligation is expected to be funded from general corporate funds at the time of decommissioning. Changes to the decommissioning obligation were as follows:

	$
Balance at October 31, 2023	4,173,494
Accretion	125,121
Revision of estimates	628,188
Foreign exchange adjustment	194,571
Balance at October 31, 2024	5,121,374
Accretion	64,436
Revision of estimates	(270,129)
Foreign exchange adjustment	520,839
Balance at April 30, 2025	5,436,520

As at April 30, 2025 reclamation deposits totaling $106,820 (October 31, 2024 - $96,569) have been paid. The reclamation deposits were placed as security for site restoration on the Kringelgruvan concession and on certain exploration and evaluation assets. The Company has no other property restoration obligations.

7. Share Capital

(a) Authorized Share Capital

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

(b) Equity Financings

Six Months ended April 30, 2025

During the six months ended April 30, 2025, 150,000 warrants were exercised for gross proceeds of $30,000.

Year Ended October 31, 2024

During the year ended October 31, 2024, 3,689,286 warrants were exercised for gross proceeds of $368,929.

On July 23, 2024, the Company has closed a first tranche of the private placement, issuing 34,400,000 common shares at a price of $0.10/share for gross proceeds of $3,440,000. Each unit consisted of one common share and one common share purchase warrant. Each warrant is exercisable by the holder to acquire one additional common share at an exercise price of $0.20 per share, expiring July 23, 2028. The Company also paid finders' fees of $3,000.

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

1. Share Capital (continued)

On September 26, 2024, announces that the Company has closed the second and final tranche of the private placement announced previously on July 15, 2024, issuing 6,710,000 common shares at a price of $0.10/share for gross proceeds of $671,000. Each unit consisted of one common share and one common share purchase warrant. Each warrant is exercisable by the holder to acquire one additional common share at an exercise price of $0.20 per share, expiring September 26, 2028.

(c) Warrants

A summary of the number of common shares reserved pursuant to the Company's outstanding warrants at April 30, 2025 and October 31, 2024 and the changes for the periods ended on those dates is as follows:

	2025		2024
	Number	Weighted Average Exercise Price $	Number	Weighted Average Exercise Price $
Balance beginning of period	62,856,130	0.26	57,825,416	0.21
Issued	-		41,110,000	0.20
Exercised	(150,000)	0.20	(3,689,286)	0.10
Expired	-		(32,390,000)	0.10
Balance end of period	62,706,130	0.17	62,856,130	0.26

The following table summarizes information about the number of common shares reserved pursuant to the Company's warrants outstanding and exercisable at April 30, 2025:

Number	Exercise Price $	Expiry Date
7,000	0.225	August 23, 2025
21,739,130	0.225	August 23, 2027
34,400,000	0.20	July 23, 2028
6,560,000	0.20	September 26, 2028
62,706,130	0.17

(d) Share Option Plan

The Company has established a rolling share option plan (the "Plan"), in which the maximum number of common shares which can be reserved for issuance under the Plan is 10% of the issued and outstanding shares of the Company. The minimum exercise price of the options is set at the Company's closing share price on the day before the grant date, less allowable discounts. Options granted may be subject to vesting provisions as determined by the Board of Directors and have a maximum term of up to five years.

6,700,000 stock options were granted at an exercise price of $0.24 during the six months ended April 30, 2025 (2024 - 9,200,000). The value of options granted was determined using the Black-Scholes option pricing model. A weighted average grant date fair value of $0.20253 (2024 - $0.08075) was calculated using expected stock price volatility of 112.55%, risk free rate of 2.84% and option life of five years are based on the Company's historical share price volatility and option life.

150,000 stock options were granted at an exercise price of $0.24 during the six months ended April 30, 2025 (2024 - 450,000). The value of options granted was determined using the Black-Scholes option pricing model. A weighted average grant date fair value of $0.17061 (2024 - $0.06191) was

13

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

1. Share Capital (continued)

calculated using expected stock price volatility of 110.75%, risk free rate of 2.65% and option life of five years are based on the Company's historical share price volatility and option life.

Year Ended October 31, 2024

9,200,000 stock options were granted at an exercise price of $0.10 during the year ended October 31, 2024 (2023 - 4,200,000). The value of options granted was determined using the Black-Scholes option pricing model. A weighted average grant date fair value of $0.08075 (2023 - $0.15438) was calculated using expected stock price volatility of 111.55%, risk free rate of 3.98% and option life of five years are based on the Company's historical share price volatility and option life.

450,000 stock options were granted at an exercise price of $0.10 during the year ended October 31, 2024 (2023 - 500,000). The value of options granted was determined using the Black-Scholes option pricing model. A weighted average grant date fair value of $0.06191 (2023 - $0.12430) was calculated using expected stock price volatility of 95.94%, risk free rate of 4.22% and option life of three years are based on the Company's historical share price volatility and option life.

Option-pricing models require the use of estimates and assumptions including the expected volatility. Changes in the underlying assumptions can materially affect the fair value estimates and, therefore, existing models do not necessarily provide reliable measure of the fair value of the Company's share options.

A summary of the Company's share options at April 30, 2025 and October 31, 2024 and the changes for the period ended on those dates is as follows:

	2025		2024
	Number of Options Outstanding	Weighted Average Exercise Price $	Number of Options Outstanding	Weighted Average Exercise Price $
Balance beginning of period	18,250,000	0.22	8,600,000	0.36
Issued	6,850,000	0.24	9,650,000	0.10
Exercised	-	-	-	-
Expired	(3,200,000)	0.62	-	-
Balance end of period	21,900,000	0.17	18,250,000	0.22

The following table summarizes information about the share options outstanding and exercisable at April 30, 2025:

Number Outstanding	Number Exercisable	Exercise Price $	Expiry Date
500,000	500,000	0.195	April 26, 2026
700,000	462,000	0.20	November 3, 2027
4,200,000	4,200,000	0.195	April 26, 2028
450,000	297,000	0.10	April 26, 2027
9,200,000	6,072,000	0.10	April 25, 2029
6,700,000	2,211,000	0.24	April 23, 2030
150,000	49,500	0.24	April 23, 2028
21,900,000	13,791,500	0.17

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

8. Related Party Disclosures

Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of members of the Company's Board of Directors and its executive officers.

(a) During the periods ended April 30, 2025 and 2024 the following compensation was incurred:

	2025	2024
	$	$
Directors and officer's compensation (current)	270,944	92,804
Share based compensation (current and former)	689,056	455,648
	960,000	548,452

As at April 30, 2025, $54,888 (October 31, 2024 - $7,236) remained unpaid and has been included in accounts payable and accrued liabilities.

Out of the total Directors' and Officers' compensation of $270,944, CEO's compensation of $115,164 has been capitalized to Exploration and Evaluation assets.

(b) SKS Business Services Ltd., a private corporation owned by Sanjay Swarup (appointed as Chief Financial Officer ("CFO") of the Company on March 1, 2021), provides accounting and administrative services. During the year ended April 30, 2025, the Company incurred $30,667 (2024 - $29,186) for accounting services by SKS Business Services.

9. Income per share

As at April 30, 2025 and 2024, the weighted average number of common shares for the purpose of calculating diluted income per share reconciles to the weighted average number of common shares used in the calculation of basic income per share as follows:

Particulars	Three months ended April 30,		Six months ended April 30,
	2025	2024	2025	2024
	$	$	$	$
Net loss for the period	(1,179,168)	(859,529)	(1,848,384)	(1,545,457)
Basic weighted average number of shares outstanding	232,112,501	190,951,949	232,112,501	189,788,330
Diluted weighted average number of shares outstanding	232,112,501	190,951,949	232,112,501	189,788,330
Loss per share – basic and diluted	($0.01)	($0.00)	($0.01)	($0.01)

---

LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

10. Financial Instruments and Risk Management

Categories of Financial Assets and Financial Liabilities

Financial instruments are classified into one of the following categories: fair value through profit or loss ("FVTPL"); amortized cost; fair value through other comprehensive income ("FVOCI"). The carrying values of the Company's financial instruments are classified into the following categories:

Financial Instrument	Category	April 30, 2025 $	October 31, 2024 $
Cash	FVTPL	1,288,821	3,460,217
Reclamation deposit	amortized cost	106,820	96,569
Investments	FVTPL	15,918	22,550
Accounts payable and accrued liabilities	amortized cost	(317,662)	(564,120)
Property acquisition obligation	amortized cost	(573,413)	(520,480)

The Company's financial instruments recorded at fair value require disclosure about how the fair value was determined based on significant levels of inputs described in the following hierarchy:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions occur in sufficient frequency and value to provide pricing information on an ongoing basis.

Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1. Prices in Level 2 are either directly or indirectly observable as of the reporting date. Level 2 valuations are based on inputs including quoted forward prices for commodities, time value and volatility factors, which can be substantially observed or corroborated in the marketplace.

Level 3 - Valuations in this level are those with inputs for the asset or liability that are not based on observable market data.

The recorded amounts for amounts receivable and accounts payable and accrued liabilities approximate their fair value due to their short-term nature. The recorded amounts for the reclamation deposit and property acquisition obligation approximates their fair value. The Company's fair value of cash under the fair value hierarchy is measured using Level 1.

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

Credit Risk

Credit risk is the risk of loss associated with a counterparty's inability to fulfill its payment obligations. The Company's credit risk is primarily attributable to cash, amounts receivable and reclamation deposit. Management believes that the credit risk concentration with respect to financial instruments included in cash, amounts receivable and reclamation deposit is remote.

Liquidity Risk

Liquidity risk is the risk that the Company will not have the resources to meet its obligations as they fall due. The Company manages this risk by closely monitoring cash forecasts and managing resources to ensure that it will have sufficient liquidity to meet its obligations. The following table is based on the contractual maturity dates of financial assets and liabilities and the earliest date on which the Company can be required to settle financial liabilities.

16

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

1. Financial Instruments and Risk Management (continued)

Contractual Maturity Analysis at April 30, 2025

	Carrying Amount $	Contractual Cash Flows $	Less than 3 Months $	1 - 5 Years $	Over 5 Years $
Cash	1,288,821	1,288,821	1,288,821	-	-
Reclamation deposit	106,820	106,820	-	-	106,820
Investments	15,918	15,918	-	15,918	-
Accounts payable and accrued liabilities	(317,662)	(317,662)	(317,662)	-	-
Property acquisition obligation	(573,413)	(573,413)	-	(573,413)	-

Market Risk

Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity and equity prices. These fluctuations may be significant.

Interest Rate Risk

The Company is exposed to interest rate risk to the extent that the cash bear floating rates of interest. The interest rate risk on cash and on the Company's obligations are not considered significant.

Foreign Currency Risk

The Company's functional currency is the Canadian Dollar and major transactions are transacted in Canadian Dollars, Swedish Krona ("SEK") and Romanian Leu ("RON). The Company maintains SEK bank accounts in Sweden and RON bank balances in Romania to support the cash needs of its foreign operations. Management believes the foreign exchange risk related to currency conversions is minimal and therefore does not hedge its foreign exchange risk. At April 30, 2025, 1 Canadian Dollar was equal to 6.9758 SEK as per Swedish Central Bank and 1 Canadian Dollar was equal to 3.1868 RON as per Romania Bank.

Balances are as follows:

	SEK	CDN $ Equivalent	RON	CDN $ Equivalent
Cash	1,660,633	238,057	370,193	116,163
VAT receivable	170,314	24,415	253,083	79,415
Reclamation deposit	745,153	106,820	-	-
Accounts payable and accrued liabilities	(805,382)	(115,454)	(173,393)	(54,409)
Property acquisition obligation	(4,000,000)	(573,413)	-	-
	(2,229,282)	(319,575)	449,883	141,169

Based on the net exposures as of April 30, 2025 and assuming that all other variables remain constant, a 10% fluctuation of the Canadian Dollar against the SEK and RON would result in the Company's net impact being approximately respectively $31,958 & $14,117 higher or lower.

17

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

10. Financial Instruments and Risk Management (continued)

Capital Management

The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition and exploration mineral properties. 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 development of the business. The Company defines capital that it manages as share capital and cash. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

11. Supplemental Cash Flow Information

During the three months ended April 30, 2025 and 2024 non-cash activities were conducted by the Company as follows:

| | 2025
$ | 2024
$ |
| --- | --- | --- |
| Operating activity | | |
| Provision for site restoration | 250,710 | 365,890 |
| Investing activity | | |
| Revisions of estimates on property, plant and equipment | (250,710) | (365,890) |

12. Segmented Information

The Company is involved in the exploration and development of resource properties in Sweden with corporate operations in Canada and accordingly, has no reportable segment revenues or operating results. The Company's total assets are segmented geographically as follows:

As at April 30, 2025

| | Corporate Canada
$ | Mineral Operations Sweden
$ | Mineral Operations Romania
$ | Total
$ |
| --- | --- | --- | --- | --- |
| Current assets | 995,300 | 318,298 | 195,578 | 1,509,176 |
| Exploration and evaluation assets | - | 17,715,262 | 3,306,504 | 21,021,766 |
| Property, plant and equipment | - | 5,545,155 | 178,857 | 5,724,012 |
| Reclamation deposit | - | 106,820 | - | 106,820 |
| | 995,300 | 23,685,535 | 3,680,939 | 28,361,774 |

As at October 31, 2024

| | Corporate Canada
$ | Mineral Operations Sweden
$ | Mineral Operations Romania
$ | Total
$ |
| --- | --- | --- | --- | --- |
| Current assets | 3,000,394 | 472,491 | 428,921 | 3,901,806 |
| Exploration and evaluation assets | - | 17,349,491 | 2,542,761 | 19,892,252 |
| Property, plant and equipment | - | 5,306,256 | 146,833 | 5,453,089 |
| Reclamation deposit | - | 96,569 | - | 96,569 |
| | 3,000,394 | 23,224,807 | 3,118,515 | 29,343,716 |

18

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LEADING EDGE MATERIALS CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED APRIL 30, 2025
(Unaudited - Expressed in Canadian Dollars)

13. Commitments

In Romania, for exploration licenses applied through the public bid process, an investment offer is presented for each exploration license, the offer of which represents the total amounts required to be spent in order to maintain possession of the concession area at the end of the five-year investment period. Accordingly, should the Company wish to retain possession of the exploration license in Romania it holds as at October 31, 2023, the Company's expenditure commitment for the five-year period ending May 15, 2027 is Euros 6,484,813 (approx. $9,532,675) of which $3,091,928 has been spent as at April 30, 2025.

14. Events after the Reporting Period

• On June 9, 2025, the Company announced signing of an agreement with Svensk Kapitalmarknadsgranskning ("SKMG") for an assignment as Certified Adviser for the Nasdaq First North Growth Market (Stockholm).
• On June 10, 2025, the Company announced the intent to complete a non-brokered private placement of up to 25,000,000 units ("Units") at a price of C$0.16 per Unit for aggregate gross proceeds of up to $4,000,000 (the "Private Placement").

19