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Pacific Ridge Exploration Ltd. — Management Reports 2026
Apr 23, 2026
43700_rns_2026-04-22_6fe52421-e0ee-43fb-81d8-1bb30b63f7bf.pdf
Management Reports
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(An Exploration Stage Company)
Management’s Discussion and Analysis (MD&A)
Year ended December 31, 2025
Management’s Discussion and Analysis Year ended December 31, 2025
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This Management’s Discussion and Analysis (“MD&A”) of Pacific Ridge Exploration Ltd. (“Pacific Ridge” or the “Company”), dated April 22, 2026, provides an update on the Company’s business activities, financial condition, financial performance, and cash flows for the year ended December 31, 2025, and to the date of this MD&A. The Company’s annual consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards).
Unless otherwise indicated, all figures are expressed in Canadian dollars. The first, second, third and fourth quarters of the Company’s fiscal years are referred to as “Q1”, “Q2”, “Q3”, and “Q4” respectively.
The following information should be read in conjunction with the Company’s audited consolidated financial statements for the years ended December 31, 2025 and 2024 (the “Financial Statements”), available on the SEDAR+ website at www.sedarplus.ca.
Pacific Ridge’s shares are listed on the TSX Venture Exchange under the symbol “PEX”, on the Over-theCounter Venture Markets (OTC-QB) under symbol PEXZF, and on the Frankfurt Stock Exchange (FSE) under the symbol “PQW”. Additional information related to Pacific Ridge is also available on the Company’s website at www.pacificridgeexploration.com or on SEDAR+ at www.sedarplus.ca.
FORWARD LOOKING STATEMENTS
This MD&A contains forward-looking statements that are related to the Company’s activities and future financial results. The results for the current periods are not necessarily indicative of the results for any future period. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance as the mineral exploration business is not without risk and most exploration projects will not become mines. Pacific Ridge is subject to a number of risks and uncertainties due to the nature of its business and the early stage of its exploration projects. A detailed discussion of risks is presented below, under the Risk Factors section.
Pacific Ridge’s disclosure of a technical or scientific nature has been reviewed and approved by Gerald G. Carlson, Ph.D., P. Eng., Chairman of the Company, and a Qualified Person under the definition of National Instrument 43-101.
HIGHLIGHTS
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On January 23, 2025, the Company consolidated its outstanding common shares on the basis of ten (10) pre-consolidation shares for one (1) post-consolidation common share.
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On March 26, 2025, the Company closed the first tranche of its non-brokered private placement by issuing 1,632,430 units at a price of $0.14 per unit and 618,823 critical mineral flow-through units at a price of $0.17 per unit for gross proceeds of $333,740. Each unit consists of one common share of the Company and one share purchase warrant exercisable at $0.20 per share for a period of 3 years. The Company paid cash finders fees of $16,887 and issued 114,020 finders warrants. The finder’s warrants are exercisable at $0.20 per warrant for a period of 3 years.
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On June 4, 2025, the Company closed the second tranche of its non-brokered private placement by issuing 15,184,494 units at a price of $0.14 per unit and 3,561,292 critical mineral flow-through units
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Management’s Discussion and Analysis Year ended December 31, 2025
at a price of $0.17 per unit for gross proceeds of $2,731,249. Each unit consists of one common share of the Company and one share purchase warrant exercisable at $0.20 per share for a period of 3 years. The Company paid cash finders fees of $89,153 and issued 373,872 finders warrants. The finder’s warrants are exercisable at $0.20 per warrant for a period of 3 years.
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On June 5, 2025, the Company entered into an agreement with the Fiore Group (“Fiore”) to provide the Company with financial advisory and administrative services. The Company also announced the appointment of Rob McLeod and Ryan Wymark as strategic advisors to the Company.
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On June 27, 2025, the Company announced shareholders approved the appointment of Stacie Jones and Josh Kierce as new independent directors and re-elected prior year directors except for Gary Bashuk. Also, Tally Barmash replaced Arie Page as the Company’s Corporate Secretary.
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On August 5, the Company announced it’s initial mineral resource for Kliyul Main Zone (“KMZ”), including 334.1 million tonnes (“Mt”) grading 0.33% copper equivalent (“CuEq”), 0.15% copper, 0.26 g/t gold, and 0.95 g/t silver in the Inferred Mineral Resource category, or 2.42 billion pounds CuEq which includes 1.11 billion pounds of copper, 2.74 million ounces of gold and 10.22 million ounces of silver.
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On September 4, 2025, the Company closed the first tranche of its previously announced best efforts private placement for gross proceeds of C$2,692,920 from the sale of 11,390,000 units of the Company at a price of $0.20 per Unit and 1,804,000 flow-through units at a price of $0.23 per FT Unit. Each Unit will consist of one common share of the Company and one common share purchase warrant exercisable at a price of $0.28 per warrant, exercisable at any time from November 5, 2025 to September 5, 2028.
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On September 11, the Company provided a drilling update for the Kliyul project and RDP project. Two drill holes, totalling 1,287 m, were completed at Kliyul and were focused on infill and resource expansion at KMZ. Five drill holes, totaling 2,156 m, were completed at RDP and were focused on the Day target.
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On September 18, the Company filed an independent technical report (the "Report") for Kliyul (on SEDAR+. The Report was prepared in accordance with National Instrument 43-101, Standards of Disclosure for Mineral Projects, in support of the initial mineral resource estimate ("MRE") for KMZ
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• On September 26, the Company closed the second tranche of its previously announced best efforts private placement for gross proceeds of $1,958,427 from the sale of 7,806,734 units of the Company at a price of $0.20 per Unit and 1,726,434 flow-through units at a price of $0.23 per FT Unit. Each Unit will consist of one common share of the Company and one common share purchase warrant exercisable at a price of $0.28 per warrant, exercisable at any time from November 26, 2025 to September 26, 2028.
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On October 16, the Company announced, that drill hole RDP-25-011 intersected 112.2m of 1.35% CuEq or 2.02 g/t gold equivalent AuEq within 405.0 m of 0.71% CuEq or 1.06 g/t AuEq from the Day target at RDP.
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On October 23, the Company announced that drill hole RDP-25-012 intersected 154.7m of 0.63% CuEq or 0.93 g/t AuEq including 86.0 m of 0.97% CuEq or 1.44 g/t AuEq.
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On November 18, the Company announced that drill hole KLI-25-70 at KMZ intersected 289m of 0.77% CuEq or 1.15 g/t AuEq.
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On December 1, the Company granted 1,850,000 incentive stock options to various directors, officers, advisors, and consultants. The stock options are exercisable at a price of $0.25 for a period of five years.
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On December 16, the Company announced it has entered into Exploration Agreements (the "Agreements") with Takla Nation ("Takla") for Kliyul and RDP.
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Management’s Discussion and Analysis Year ended December 31, 2025
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RESOURCE PROPERTIES
Kliyul and Redton, British Columbia
Kliyul is located 50 km southeast of the Kemess mine and 5 km from the Omineca mining road and power line, in one of the most geochemically anomalous areas for copper and gold in the Quesnel Terrane. Kliyul contains several occurrences in the BC Minfile database, including the four major target areas that extend over a 4 km strike length: Kliyul Main Zone (“KMZ”) Parrish Hill/Bap Ridge, Ginger/Ginger South and M39. Each target represents an interpreted porphyry centre.
Redton adjoins Northwest Copper Corporation’s Kwanika property along its eastern and northern boundary. Redton is road accessible and underlain by the important Hogem Batholith.
Kliyul
In 2020, the Company completed a surface geophysical survey at Kliyul designed to probe the depth-extent of the chargeability and resistivity response related to the Kliyul mineralization, and to evaluate possible vectors to mineralization for a drill test of priority Cu-Au targets.
During August and September of 2021, Pacific Ridge completed 1,544 m of diamond drilling in three holes at Kliyul. All three holes encountered porphyry-style mineralization consisting of pyrite, chalcopyrite and lesser bornite in veins and as disseminations. Logging of the drill core demonstrated a veining sequence characterized by early magnetite-chlorite alteration and veining which is cross-cut by later-stage banded quartz-magnetite veins as well as later generations of quartz+magnetite+chalcopyrite veining. The later stage veining brings in Cu-bearing chalcopyrite+bornite with quartz as well as epidote and/or anhydrite+magnetite. Early magnetite and quartz-magnetite veins are interpreted to represent the higher temperature part of the porphyry system at KMZ. The presence of bornite is also an indication of proximity to the higher temperature core of a porphyry system and may be a positive vector towards the core of KMZ. All are characteristics associated with classic porphyry copper occurrences.
Pacific Ridge’s 2021 drill program produced the longest and highest-grade intervals ever returned from Kliyul. A summary of assay results from the three holes is shown in the table below:
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Management’s Discussion and Analysis Year ended December 31, 2025
Table 1. 2021 Kliyul Drill Highlights.
| Hole KLI-21-036 including including KLI-21-037 including including KLI-21-038 including |
From(m) | To(m) | Width(m) | Cu(%) | Au(g/t) | *CuEq(%) ** | AuEq(g/t)** |
|---|---|---|---|---|---|---|---|
| 12.0 | 449.0† | 437.0 | 0.22 | 0.60 | 0.64 | 0.95 | |
| 12.0 | 33.0 | 21.0 | 0.34 | 1.30 | 1.24 | 1.83 | |
| 294.0 | 435.0 | 141.0 | 0.36 | 1.11 | 1.13 | 1.67 | |
| 12.3 | 579.0† | 566.7 | 0.20 | 0.44 | 0.51 | 0.75 | |
| 12.3 | 329.0 | 316.7 | 0.30 | 0.70 | 0.79 | 1.17 | |
| 243.9 | 268.0 | 24.1 | 1.09 | 2.21 | 2.64 | 3.92 | |
| 9.0 | 516.0† | 507.0 | 0.15 | 0.39 | 0.43 | 0.63 | |
| 9.0 | 351.0 | 342.0 | 0.17 | 0.50 | 0.53 | 0.78 |
- CuEq = ((Cu%) x $Cu x 22.0462) + (Au(g/t) x AuR/CuR x $Au x 0.032151) + (Ag(g/t) x AgR/CuR x $Ag x 0.032151)) / ($Cu x 22.0462). **AuEq = ((Au(g/t) x $Au x 0.032151) + ((Cu%) x CuR/AuR x $Cu x 22.0462) + (Ag(g/t) x AgR/CuR x $Ag x 0.032151)) / ($Au x 0.032151). Commodity prices: $Cu = US$3.25/lb, $Au = US$1,800/oz., and Ag = US$20.00/oz.
There has been no metallurgical testing on Kliyul mineralization. The Company estimates copper recoveries (CuR) of 84%, gold recoveries (AuR) of 70%, and silver recoveries (AgR) of 65% based on the average recoveries from Kemess Underground, Mount Milligan, and Red Chris.) Factors: 22.0462 = Cu% to lbs per tonne, 0.032151 = Au g/t to troy oz per tonne, and 0.032151 = Ag g/t to troy oz per tonne. † End of hole
Between late June and late September 2022, the company completed a 12-hole, 7014.7 m drill program at KMZ and adjacent targets. Highlights of the drilling are shown in the table below:
Table 2. 2022 Kliyul Drill Highlights.
| Hole | From(m) | To(m) | Width(m) | Cu(%) | Au(g/t) | Ag(g/t) | CuEQ*(%) | AuEQ(g/t)** |
|---|---|---|---|---|---|---|---|---|
| KLI-22-039 | 9.3 | 252.0 | 242.7 | 0.15 | 0.17 | 1.05 | 0.28 | 0.41 |
| 22.0 | 43.4 | 21.4 | 0.38 | 0.48 | 3.96 | 0.73 | 1.08 | |
| 192.0 | 229.0 | 37.0 | 0.20 | 0.27 | 0.67 | 0.39 | 0.58 | |
| KLI-22-040 | 23.0 | 550.8 | 527.8 | 0.19 | 0.30 | 1.35 | 0.40 | 0.60 |
| 170.0 | 268.0 | 98.0 | 0.33 | 0.90 | 3.42 | 0.96 | 1.42 | |
| 210.0 | 253.0 | 43.0 | 0.50 | 1.11 | 2.72 | 1.27 | 1.88 | |
| KLI-22-041 | 12.0 | 600.0 | 588.0 | 0.12 | 0.39 | 0.90 | 0.39 | 0.58 |
| 280.0 | 323.0 | 43.0 | 0.09 | 1.59 | 1.34 | 1.17 | 1.74 | |
| 337.0 | 398.0 | 61.0 | 0.25 | 1.15 | 1.12 | 1.03 | 1.53 | |
| KLI-22-042 | 9.0 | 702.0 | 693.0 | 0.11 | 0.20 | 0.81 | 0.25 | 0.37 |
| 438.0 | 474.4 | 36.4 | 0.14 | 0.62 | 0.99 | 0.56 | 0.83 | |
| KLI-22-043 | 9.0 | 516.0 | 507.0 | 0.17 | 0.19 | 0.82 | 0.31 | 0.46 |
| 165.0 | 229.0 | 64.0 | 0.31 | 0.47 | 1.82 | 0.64 | 0.95 | |
| KLI-22-044 | 11.6 | 651.0 | 639.4 | 0.11 | 0.23 | 0.84 | 0.27 | 0.40 |
| 409.0 | 432.2 | 23.2 | 0.24 | 0.94 | 1.40 | 0.89 | 1.32 | |
| KLI-22-045 | 112.0 | 184.0 | 72.0 | 0.21 | 0.59 | 1.96 | 0.62 | 0.93 |
| KLI-22-046 | 273.0 | 442.0 | 169.0 | 0.20 | 0.46 | 1.65 | 0.52 | 0.77 |
| 371.0 | 430.0 | 59.0 | 0.24 | 0.87 | 2.29 | 0.84 | 1.24 | |
| KLI-22-047 | No significant values | |||||||
| KLI-22-048a | No significant values | |||||||
| KLI-22-049 | 144.0 | 484.0 | 340.0 | 0.15 | 0.20 | 0.80 | 0.29 | 0.42 |
| KLI-22-050 | 58.0 | 584.0 | 526.0 | 0.20 | 0.43 | 1.03 | 0.49 | 0.73 |
| 254.0 | 308.0 | 54.0 | 0.40 | 1.03 | 2.42 | 1.11 | 1.64 | |
| 354.0 | 443.0 | 89.0 | 0.28 | 1.05 | 1.20 | 1.00 | 1.48 |
In addition to the drill program, Pacific Ridge advanced geological work on several other interpreted porphyry centres that occur along the 4 km long northwest-trending corridor of porphyries and quartzsericite-pyrite alteration. The Company completed a 27 line-km IP survey across Ginger/Ginger South, Parish Hill/Bap Ridge, and M-39, mapping and rock geochemical sampling, e areas, a high-resolution aeromagnetic survey, and a LiDAR survey.
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Management’s Discussion and Analysis Year ended December 31, 2025
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In 2023, the Company completed 10,284 m of drilling in 19 holes. It also completed a program of drill core relogging, petrographic studies and lithogeochemical analysis of portable XRF results by porphyry consultant Brock Riedell. Geological mapping and sampling were also carried out by geological consultant Jim Logan. Two molybdenite-bearing drill core samples from 2023 were processed for rhenium-osmium (Re-Os) age dating and analyzed by R.A. Creaser. On November 14, 2023, the Company announced that it had almost doubled the size of Kliyul from approximately 52 km[2] to approximately 98 km[2] .
Table 3. 2023 Kliyul Drill Highlights.
| Target | Hole ID | From (m) | To (m) | Width (m) | Cu (%) | Au (g/t) | Ag (g/t) | CuEQ (%) | AuEQ (g/t) |
|---|---|---|---|---|---|---|---|---|---|
| KMZ | KLI-23-051 | 6.3 | 138 | 131.7 | 0.16 | 0.18 | 1.07 | 0.29 | 0.43 |
| KMZ/ KMZ West |
KLI-23-052 | 11 | 539.5 | 528.5 | 0.16 | 0.17 | 1.02 | 0.28 | 0.41 |
| includes | 63 | 200 | 137 | 0.22 | 0.26 | 1.41 | 0.4 | 0.6 | |
| and | 403.8 | 467 | 63.2 | 0.23 | 0.21 | 1.53 | 0.39 | 0.57 | |
| KMZ | KLI-23-054 | 11.7 | 552 | 540.3 | 0.19 | 0.36 | 1.09 | 0.44 | 0.65 |
| includes | 181 | 486.5 | 305.5 | 0.23 | 0.51 | 1.22 | 0.59 | 0.87 | |
| includes | 301.5 | 439 | 137.5 | 0.29 | 0.66 | 1.39 | 0.75 | 1.11 | |
| includes | 301.5 | 344 | 42.5 | 0.45 | 1.31 | 2.74 | 1.37 | 2.04 | |
| Ginger | KLI-23-055 | 196.9 | 216 | 19.1 | 0.01 | 0.34 | 0.65 | 0.24 | 0.36 |
| KMZ North | KLI-23-056 | 485.8 | 523 | 37.2 | 0.14 | 0.19 | 1.07 | 0.27 | 0.41 |
| KMZ | KLI-23-057 | 175.4 | 562.8 | 387.4 | 0.1 | 0.2 | 0.76 | 0.24 | 0.36 |
| includes | 290 | 379.2 | 89.3 | 0.21 | 0.25 | 0.91 | 0.38 | 0.57 | |
| includes | 304 | 338 | 34 | 0.24 | 0.29 | 0.97 | 0.44 | 0.66 | |
| KMZ North | KLI-23-058 | 17.1 | 528.6 | 511.4 | 0.16 | 0.29 | 1.01 | 0.36 | 0.53 |
| includes | 105 | 493.5 | 388.5 | 0.18 | 0.35 | 1.05 | 0.42 | 0.62 | |
| includes | 211 | 261.9 | 50.9 | 0.23 | 0.52 | 1.63 | 0.59 | 0.88 | |
| and | 390 | 528.6 | 138.6 | 0.14 | 0.53 | 0.84 | 0.51 | 0.75 | |
| includes | 390 | 493.5 | 103.5 | 0.18 | 0.66 | 0.93 | 0.63 | 0.94 | |
| includes | 439.9 | 492.7 | 52.8 | 0.26 | 1.03 | 1.23 | 0.96 | 1.42 | |
| Parish Hill | KLI-23-059 | 181.1 | 193 | 11.9 | 0.04 | 0.1 | 1.02 | 0.12 | 0.18 |
| 247.1 | 263.7 | 16.7 | 0.06 | 0.02 | 0.65 | 0.08 | 0.12 | ||
| KMZ North | KLI-23-060 | 152 | 252 | 100 | 0.16 | 0.26 | 1.38 | 0.35 | 0.51 |
| includes | 191 | 252 | 61 | 0.18 | 0.32 | 1.67 | 0.4 | 0.6 | |
| and | 584 | 586 | 2 | 0.81 | 10.25 | 35.5 | 7.96 | 11.83 | |
| Ginger S | KLI-23-061 | 224 | 227 | 3 | 0.03 | 0.21 | 0.61 | 0.18 | 0.26 |
| KMZ | KLI-23-062 | 9 | 563 | 554 | 0.14 | 0.16 | 0.83 | 0.25 | 0.37 |
| includes | 13 | 126 | 113 | 0.22 | 0.36 | 1.65 | 0.48 | 0.71 | |
| includes | 276 | 440.3 | 164.3 | 0.16 | 0.15 | 0.73 | 0.27 | 0.4 | |
| KMZ East | KLI-23-063 | 536 | 543.5 | 7.5 | 0.07 | 0.34 | 0.65 | 0.3 | 0.45 |
| KMZ North | KLI-23-064 | 161 | 166 | 5 | 0.24 | 0.58 | 1.87 | 0.45 | 0.67 |
| 230 | 234.7 | 4.7 | 0.06 | 0.57 | 5.5 | 0.48 | 0.71 |
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Management’s Discussion and Analysis Year ended December 31, 2025
| Target | Hole ID | From (m) | To (m) | Width (m) | Cu (%) | Au (g/t) | Ag (g/t) | CuEQ (%) | AuEQ (g/t) |
|---|---|---|---|---|---|---|---|---|---|
| 501.5 | 507.4 | 5.9 | 0.04 | 0.57 | 1.25 | 0.43 | 0.64 | ||
| KMZ West | KLI-23-065 | 10.7 | 615.2 | 604.6 | 0.14 | 0.18 | 0.53 | 0.27 | 0.4 |
| includes | 90 | 201 | 111 | 0.24 | 0.3 | 0.7 | 0.45 | 0.67 | |
| includes | 576 | 611 | 35 | 0.09 | 0.76 | 0.75 | 0.6 | 0.9 | |
| includes | 608.4 | 610 | 1.6 | 0.1 | 13.65 | 5 | 9.32 | 13.85 | |
| KMZ East | KLI-23-066 | 161 | 460 | 299 | 0.17 | 0.14 | 0.6 | 0.27 | 0.39 |
| includes | 201 | 317.9 | 116.9 | 0.28 | 0.22 | 0.96 | 0.44 | 0.65 | |
| and | 627 | Ɨ 644.0 | 17 | 0.05 | 0.14 | 0.6 | 0.15 | 0.22 | |
| KMZ | KLI-23-067 | 21.4 | 596 | 574.6 | 0.14 | 0.17 | 1.01 | 0.26 | 0.39 |
| includes | 107.8 | 417 | 309.2 | 0.18 | 0.2 | 1 | 0.32 | 0.48 | |
| includes | 139.6 | 197 | 57.4 | 0.22 | 0.26 | 1.22 | 0.41 | 0.6 | |
| includes | 272 | 330 | 58 | 0.24 | 0.21 | 1.07 | 0.39 | 0.58 | |
| KMZ West | KLI-23-068 | 87.2 | 543 | 455.8 | 0.17 | 0.37 | 0.93 | 0.43 | 0.63 |
| includes | 243 | 470.3 | 227.3 | 0.2 | 0.62 | 1.18 | 0.63 | 0.93 | |
| includes | 220 | 330 | 110 | 0.27 | 1.03 | 1.55 | 0.97 | 1.44 | |
| includes | 256.6 | 326 | 69.4 | 0.33 | 1.53 | 1.89 | 1.37 | 2.03 | |
| KMZ North | KLI-23-069 | 85 | 655 | 570 | 0.14 | 0.18 | 0.99 | 0.27 | 0.4 |
| includes | 433.4 | 481 | 47.6 | 0.17 | 0.48 | 0.78 | 0.5 | 0.74 | |
| and | 584 | 629 | 45 | 0.38 | 0.28 | 2.2 | 0.58 | 0.86 |
In addition to more than doubling the size of Kliyul, the 2023 program provided valuable insights into the geology and mineralization at KMZ:
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The porphyry system is not confined to the central KMZ fault block and extends into adjacent fault blocks (KMZ West, KMZ East, and KMZ North) and the amount of fault offset is minimal.
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KMZ central block is interpreted as high standing relative to other blocks but mineralization in other blocks can still come close to surface despite the block-to block fault offsets.
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The porphyry system appears to have a gentle-to-moderate component of tilt to the west. This result has been determined consistently though separate vein and dyke modelling strategies.
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Modelling of magnetic susceptibility values of 10 x 10-3 SI or higher as a proxy for the potassic core zone suggests the porphyry system plunges steeply to the north-northeast or northeast.
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The porphyry system has at least three symmetrically zoned mineralization signatures over a 1,300 m-long east-west cross section. These include:
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potassic core zone (~250 m diameter) with higher Au:Cu (> 1), lower Ag:Au (< 3) values, and continuous magnetic susceptibility values of 10 x 10-3 SI or higher;
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chlorite-sericite peripheral zone between ~250-500 m from the deposit centre with lower Au:Cu (< 1) and higher Ag:Au values (> 3) and less continuous domains of 10 x 10-3 SI magnetic susceptibility;
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distal D-vein zone (quartz-sericite-pyrite) and/or local skarn occurrences with high Ag:Au values up to 1 km from the potassic core zone.
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A source pluton for the porphyry system has yet to be definitively identified but final drilling in 2023 intersected an alternating sequence of intermediate-felsic intrusive rocks that is suggestive of a pluton top or cupola zone at depth. This is located in KMZ North near the Valley Fault/Divide
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Management’s Discussion and Analysis Year ended December 31, 2025
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Lake Fault intersection. A hydrothermal breccia with upward-transported clasts has also been identified in this area.
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Main controls on porphyry mineralization are quartz diorite porphyry dykes, which constitute a dyke field in the known porphyry system, as well as early-stage structural corridors characterized by linear and semi-continuous ductile shear zones that may or may not be later developed in throughgoing brittle faults.
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The porphyry system is currently classified as a Low-K type calc-alkalic system and has some similarities to Kemess, Red Chris, and Saddle North. However, the Company believes that the best analogue is the Far Southeast project (Gold Fields).
During the year ended December 31, 2024, the Company completed a 541 line-kilometre airborne ZTEM survey covering 85% of Kliyul. The results strengthen the Company’s confidence that drill hole KLI-23-069 intersected a mineralized quartz diorite porphyry stock, that is believed to be the mineralizing or source pluton north of KMZ.
On August 5, 2025 the Company announced it’s initial mineral resource for KMZ, including 334.1 million tonnes (“Mt”) grading 0.33% CuEq, 0.15% copper, 0.26 g/t gold, and 0.95 g/t silver in the Inferred Mineral Resource category, or 2.42 billion pounds CuEq which includes 1.11 billion pounds of copper, 2.74 million ounces of gold and 10.22 million ounces of silver.
On September 18th, 2025 the Company announced the filing of a NI 43-101 technical report in support of the initial mineral resource estimate at KMZ.
In 2025 two drill holes, totalling 1,287 m, were completed at Kliyul and were focused on infill and resource expansion at the Kliyul Main Zone. A small rock sampling program was also completed over the Klip target. Highlights from the drilling are shown in the table below.
Table 4. 2025 Kliyul Drill Highlights.
| Target | Hole ID | From (m) | To (m) | Width (m) |
Cu (%) | Au (g/t) | Ag (g/t) | CuEQ (%) | AuEQ (g/t) |
|---|---|---|---|---|---|---|---|---|---|
| KMZ | KLI-25-70 | 2.7 | 492.5 | 489.8 | 0.2 | 0.53 | 1.34 | 0.56 | 0.84 |
| includes | 2.7 | 401 | 398.3 | 0.23 | 0.63 | 1.54 | 0.66 | 0.98 | |
| includes | 110 | 399 | 289 | 0.26 | 0.75 | 1.54 | 0.77 | 1.15 | |
| and | 193 | 221 | 28 | 0.34 | 0.85 | 2.11 | 0.92 | 1.38 | |
| and | 260 | 345 | 85 | 0.45 | 1.49 | 2.5 | 1.47 | 2.19 | |
| includes | 279.5 | 317 | 37.5 | 0.67 | 2.69 | 3.64 | 2.49 | 3.72 | |
| includes | 378 | 399 | 21 | 0.29 | 1.44 | 1.28 | 1.26 | 1.89 | |
| KMZ | KLI-25-71 | 80 | 501 | 421 | 0.12 | 0.16 | 0.62 | 0.24 | 0.35 |
| includes | 170 | 369 | 199 | 0.18 | 0.25 | 0.82 | 0.36 | 0.54 | |
| and | 230 | 321 | 91 | 0.23 | 0.35 | 0.93 | 0.47 | 0.7 |
Drill hole KLI-25-070 is one of the best holes ever drilled at KMZ and filled a 130 m gap between drill holes. It has a high gold g/t: copper % ratio (>2) and is similar in style to drill hole KLI-21-036, which intersected 437 m of 0.64% CuEq or 0.96 g/t AuEq (0.22% copper, 0.60 g/t gold and 1.62 g/t silver), and drill hole KLI21-037 which intersected 566.7m of 0.51% CuEq or 0.76 g/t AuEq* (0.20 % copper, 0.44 g/t gold, and 1.39
Page 7 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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g/t silver). Further, it confirmed the presence of a high-grade copper gold mineralized northward-dipping pipe-shaped zone that continues north of the Valley Fault.
Drill hole KLI-25-071 extended copper-gold mineralization 110 m further west of drill hole KLI-23-068, which intersected 455.8m of 0.43% CuEq and 0.64 g/t AuEq* (0.17% copper, 0.27 g/t gold, and 0.93 g/t silver)(see news release dated January 9, 2024), and successfully expanded mineralization within the current mineral resource pit shell.
On April 13, 2026, the Company announced plans for a 2026 drill program at Kliyul that will focus on resource expansion at KMZ and test other high priority porphyry targets along the 6KM-long Kliyul Porphyry trend.
Redton
In 2020, the Company completed a one-hole, 434 m drill program, which tested the Redton North target, a 550 m by 250 m magnetic and IP chargeability anomaly with coincident 500 m x 100 m Cu-Mo soil anomaly, located 2.5 km north of Northwest Copper’s Kwanika Central Zone deposit. No significant copper or gold assays were encountered in the hole.
In 2022, the Company completed a 294-sample soil geochemical survey, defining two target areas Redton East and NEX. Copper and gold anomalies are consistent with past results and are interpreted to be dispersed down-ice to the east or southeast of geophysical anomalies at East Swan and NEX target areas. No work was carried out at Redton in 2023. An IP program was completed at Redton during the 2024 field season and confirmed porphyry exploration targets within 3 KM of NorthWest Copper’s Kwanika South Zone copper-gold-molybdenum porphyry deposit.
RDP, British Columbia
In May 2021, the Company acquired an option on the RDP Cu-Au porphyry project in central British Columbia, approximately 40 km west of Kliyul. On January 3, 2024, Pacific Ridge announced that it had exercised its option to acquire a 100% interest in RDP. In addition, the Company will issue 300,000 shares to the vendor on completion of 5,000 m of drilling (completed) and an additional 500,000 shares upon defining a 1,000,000 ounces of gold equivalent resource in the inferred or greater category. RDP is also subject to a 2% NSR payable to the vendor, half of which can be purchased at any time for $1.5 million.
RDP is 10,300 ha in size and lies within the Stikine Terrane, which is host to numerous significant porphyry deposits in northern British Columbia, including Kemess, Red Chris, Kerr - Sulphurets and Galore Creek. Exploration at RDP since the early 1970’s has included prospecting and mapping, various geochemical surveys, ground and airborne geophysical surveys, trenching and a limited amount of drilling. This work has identified three porphyry centres: Roy, Day and Porcupine. Mineralization at Roy consists of a quartzmagnetite-chalcopyrite stringer-stockwork veining within a monzonite intrusive. Trenching in 1991 encountered 0.121% Cu and 0.55 g/t Au over 62 m within an 80 m long trench. Only a single historical drill hole has been documented at Roy in 2011, and it encountered 122.95 m of 0.11% Cu and 0.64 g/t Au. At Day, mineralization includes pyrite, magnetite, chalcopyrite, minor molybdenite, and traces of bornite as disseminations and fracture fillings in a diorite and adjacent altered volcaniclastic rocks. Historical drill highlights include 58.8 m grading 0.67% Cu and 0.93 g/t Au (D-74-13) and 57 m of 0.54% Cu and 0.75 g/t Au (C-92-13). Porcupine had been explored as a stratabound, massive sulphide target, but recent interpretation of the alteration and soil geochemistry suggests the potential for porphyry style mineralization.
Page 8 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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On September 22, 2025, the Company issued 300,000 common shares at a fair market value of $0.26 per share upon completion of 5,000m of drilling.
During 2021, the Company completed a mapping and sampling program at RDP, focusing on Roy and Day.
In February 2022, the Company signed an earn-in agreement with Antofagasta Minerals S.A. (“Antofagasta”), a wholly owned subsidiary of Antofagasta PLC on RDP. The Agreement granted Antofagasta the option to acquire a 75% interest in RDP by making payments of $1,350,000, plus a success payment of $800,000 upon exercise of the option, by spending $10,000,000 on exploration over eight years, and delivering a NI 43-101 compliant preliminary economic assessment report. In the first quarter of 2024, Antofagasta terminated the option.
During the 2022 field season, the Company completed a drilling program comprising six holes totaling 1,861 m. Holes RDP22-001 to 005 were drilled at different orientations from a single drill pad at Day and RDP22-006 was drilled at Roy. Highlight results are shown in the table below:
Table 4. 2022 RDP Drill Highlights.
| Hole No | From(m) | To(m) | Width(m) | Cu(%) | Au(g/t) | Ag(g/t) | CuEQ(%) | AuEQ(g/t) |
|---|---|---|---|---|---|---|---|---|
| RDP22-001 | 9.5 | 61 | 51.5 | 0.51 | 0.65 | 2.59 | 0.97 | 1.44 |
| RDP22-002 | 16 | 42.5 | 26.5 | 0.5 | 0.69 | 4.84 | 1 | 1.48 |
| RDP22-003 | 13.1 | 72.5 | 59.4 | 0.78 | 1.2 | 2.99 | 1.61 | 2.39 |
| RDP22-004 | 15.3 | 58 | 42.7 | 0.43 | 0.7 | 1.69 | 0.92 | 1.36 |
| RDP22-005 | 15.8 | 513 | 497.2 | 0.37 | 0.4 | 1.6 | 0.66 | 0.97 |
| includes | 15.8 | 39 | 23.2 | 1.02 | 1.84 | 4.09 | 2.29 | 3.4 |
| and | 15.8 | 123 | 107.2 | 0.63 | 1.1 | 2.91 | 1.39 | 2.06 |
| RDP22-006 | 4 | 379 | 375 | 0.04 | 0.19 | 0.23 | 0.17 | 0.25 |
| includes | 4 | 30.1 | 26.1 | 0.12 | 0.54 | 0.5 | 0.49 | 0.72 |
The diamond drilling program at RDP totaled 1,428 metres in three drill holes. Two drill holes were completed at Day. These were large step-outs over 300 m to the northeast and northwest from the collar location for RDP-22-005. In addition, a single diamond drill hole tested Bird, located approximately 2.0 km north of Day, where Pacific Ridge discovered porphyry copper-gold mineralization in a stream cutbank in 2022.
On March 13, 2024, the Company announced that Antofagasta had terminated its option to earn an interest in RDP.
Five drill holes, totaling 2,156 m, were completed at RDP in 2025 and were focused on the Day target, which returned one of B.C.'s best porphyry copper-gold intervals in 2022: Drill hole RDP-22-005 intersected 107.2 m of 1.39% CuEq or 2.06 g/t AuEq* (0.63% copper, 1.10 g/t gold, and 2.91 g/t silver). Highlights of the drilling are shown in Table 6 below:
Page 9 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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Table 6. 2025 RDP Drill Highlights.
| Hole No | From(m) | To(m) | Width(m) | Cu(%) | Au(g/t) | Ag(g/t) | CuEQ(%) | AuEQ(g/t) |
|---|---|---|---|---|---|---|---|---|
| RDP-25-10 | 2.2 | 5 | 2.8 | 0.9 | 0.71 | 3.12 | 1.4 | 2.08 |
| RDP-25-11 | 4.8 | 409.8 | 405 | 0.44 | 0.38 | 1.87 | 0.71 | 1.06 |
| includes | 4.8 | 117 | 112.2 | 0.76 | 0.86 | 3.16 | 1.35 | 2.02 |
| and | 4.8 | 139.7 | 134.9 | 0.66 | 0.74 | 2.78 | 1.18 | 1.77 |
| includes | 156 | 194 | 38 | 0.4 | 0.23 | 1.37 | 0.56 | 0.84 |
| and | 150.9 | 278 | 127.1 | 0.3 | 0.12 | 1.09 | 0.39 | 0.58 |
| includes | 346 | 383 | 37 | 1.05 | 0.97 | 5.38 | 1.74 | 2.6 |
| and | 346 | 409.8 | 63.8 | 0.69 | 0.58 | 3.39 | 1.11 | 1.65 |
| RDP-25-12 | 208.3 | 363 | 154.7 | 0.42 | 0.29 | 1.95 | 0.63 | 0.94 |
| includes | 268 | 354 | 86 | 0.61 | 0.49 | 2.93 | 0.97 | 1.44 |
| includes | 276 | 320 | 44 | 0.81 | 0.62 | 4.24 | 1.26 | 1.88 |
| and | 372 | 520 | 148 | 0.31 | 0.09 | 1.28 | 0.37 | 0.56 |
| RDP-25-13 | 453.5 | 520 | 66.5 | 0.45 | 0.16 | 1.91 | 0.57 | 0.85 |
| includes | 470 | 514 | 44 | 0.56 | 0.18 | 2.09 | 0.69 | 1.04 |
| includes | 447 | 577.8 | 130.8 | 0.3 | 0.24 | 1.34 | 0.47 | 0.7 |
| RDP-25-14 | 492 | 574 | 82 | 0.35 | 0.34 | 1.6 | 0.59 | 0.88 |
| includes | 554.6 | 574 | 19.4 | 0.45 | 0.33 | 2.43 | 0.69 | 1.02 |
On April 13, 2026, the Company announced plans for a 2026 drill program to target the interpreted porphyry centre at Day and further define the western magnetic lobe discovery.
Chuchi and Chuchi South, British Columbia
The Company has the option to acquire up to a 75% interest in Chuchi from AuRico. Pacific Ridge has the right to earn a 51% interest by making cash payments totaling $60,000, issuing 2.0 million shares, and spending $5 million on exploration by the fourth anniversary of the agreement. The Company then has the right to increase its interest in Chuchi to 75% by making additional payments totaling $100,000, issuing 1.5 million shares, and completing an additional $5 million in exploration by the sixth anniversary of the agreement. Various claims are subject to up to 6% in net smelter royalties, which can be bought down to 2.1%.
On March 3, 2023, the Company announced that it had acquired an option to earn up to a 75% interest in the Chuchi South porphyry copper-gold project (“Chuchi South”) from American Copper Development Corporation and prospector Ronald Bilquist. Chuchi South adjoins Pacific Ridge’s Chuchi on the south and west. The acquisition of Chuchi South more than doubles the size of Pacific Ridge’s current land position at Chuchi.
During the year ended December 31, 2024, the Company determined not to proceed with the Chuchi South Property and accordingly, recorded an impairment of $105,000 to write the property down to $Nil. During the year ended December 31, 2025, the Company made the decision to not continue with the Chuchi project and wrote-off acquisition costs of $104,257.
Page 10 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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Onjo, British Columbia
On January 27, 2022, the Company entered into a property purchase agreement to acquire a 100% interest in the Onjo Cu-Au porphyry project (“Onjo”) in north-central British Columbia. The vendor retains a 2% NSR, with the Company having an option to purchase one quarter of the NSR at any time for USD $1,500,000. On February 22, 2022, the Company entered into a sale and purchase agreement to acquire a 100% interest in four internal claims at Onjo.
The 14,692 ha road accessible Onjo lies in the 1,300 km long Quesnel Terrane on the same magnetic trend that hosts the Mount Milligan Mine, Chuchi and Kwanika porphyry discoveries.
Onjo hosts skarn and alkalic porphyry Cu-Au mineralization associated with monzonitic phases of the Witch Lake intrusions cutting Takla volcanic rocks, similar to the mineralization and host rocks at the Mount Milligan mine. The style of Cu-Au mineralization returned in historical drilling, combined with the presence of nearby skarn occurrences, leads Pacific Ridge to believe that past operators at Onjo encountered the upper levels of an alkalic porphyry system.
In 2022, the Company completed a 667 line-km airborne ZTEM survey over Onjo. The Company then carried out a ten-day program of mapping and soil sampling over key areas outlined by previous studies and the results of the ZTEM survey.
In 2023, the Company completed a 10 line-km Induced Polarization survey at Onjo, comprising two five km lines. The survey defined chargeability targets that correlate with the anomalous porphyry pathfinder geochemistry (Mo, Cu, Se, Te, Bi, As, Sb, Au, MPIx). No work was completed at Onjo in 2025 and no work is currently planned in 2026.
Orbison, British Columbia
The Orbison project (a.k.a. Gap Project) is a reconnaissance porphyry Cu-Au exploration program in central British Columbia. The Company is evaluating known properties and showings as well as examining regional geological, geophysical, and geochemical databases for evidence of potential porphyry Cu-Au mineralization. The Orbison claims were staked as a part of the Gap Project. No work was completed at Orbison in 2024 and the claims were allowed to lapse on August 1, 2025.
Mariposa, Yukon
The Company’s 100% owned, 295 km[2] Mariposa Property is in the Yukon’s White Gold District, 120 km southeast of Dawson City, 40 km southeast of White Gold’s Golden Saddle Deposit and 30 km eastnortheast of Newmont’s Coffee Property. Prior exploration identified an open-ended 7-km long horizon of altered sulphide bearing quartz mica schist in the Skookum Zone area, in a setting favorable for hosting gold mineralization.
Since 2010, The Company has spent over $6 million exploring the Mariposa Property, including geological mapping, soil geochemical surveys, geophysical surveys, trenching and drilling. Results are summarized on the Company’s web site.
During the 2022 field season, the Company completed a program of re-sampling and reclamation of historical trenches dating from 2012.
Page 11 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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During 2023, all outstanding disturbance on the property was reclaimed, including the historical camp site on Scroggie Creek and trenches over the Skookum Main, Skookum West, and Hackly target areas.
The Company completed two adjacent soil geochemical surveys at Mariposa in 2024 and 2025. The plans for advancing Mariposa include seeking a potential farm-out or sale of the property.
Eureka Dome, Yukon
The Company’s 100% owned 32 km[2] Eureka Dome property is located 70 km southeast of Dawson City, within the Klondike-White Gold District. Placer mining activity in Eureka Creek dates to the 1896 gold rush, with estimated historical production from Eureka and Black Hills Creeks of greater than 140,000 oz. Au. No work is planned at Eureka in 2026.
The plans for advancing Eureka Dome include seeking a potential farm-out or sale of the property.
Gold Cap, Yukon
The 100% owned 1,100 ha Gold Cap property adjoins the northeast boundary of White Gold Corp’s Golden Saddle property. The property was staked in 2009 based on an anomalous gold silt sample reported by the Geological Survey of Canada. In 2010, Pacific Ridge collected 1,766 soil samples and defined two anomalous gold zones.
The Gold Cap claims were allowed to lapse on April 8, 2025.
Page 12 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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SUMMARY OF CAPITALIZED ACQUISITION COSTS AND EXPLORATION EXPENSES
The following acquisition-related costs are carried by the Company in its consolidated statement of financial position presented with its Financial Statements:
| Balance, December 31, 2023 Option payments in cash Option payments in shares Other payments in cash Write-off |
Company-ownedproperties | Properties on option from third parties |
Total |
|---|---|---|---|
| Kliyul Redton Onjo Orbison RDP Mariposa BC BC BC BC BC YT |
Chuchi Chuchi South BC BC |
||
| $ $ $ $ $ $ 3,635,681 35,000 412,230 12,261 155,449 - - - - - - - - - - - - - 1,425 - - - - 7,840 - - - - - - |
$ $ 50,216 50,000 5,000 - - 11,000 9,041 - - (61,000) |
4,350,837 5,000 11,000 18,306 (61,000) |
|
| Balance, December 31, 2024 | 3,637,106 35,000 412,230 12,261 155,449 7,840 |
64,257 - |
4,324,143 |
| Option payments in cash Option payments in shares Write-off |
- - - - - - - - - - 78,000 - - - - (12,261) - - |
40,000 - - - (104,257) - |
40,000 78,000 (116,518) |
| Balance, December 31, 2025 | 3,637,106 35,000 412,230 - 233,449 7,840 |
- - |
4,325,625 |
Page 1 of 1
Management’s Discussion and Analysis Year ended December 31, 2025
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The following is a summary of exploration expenses incurred in each of the Company’s projects, the total of which is presented with the Company’s statement of loss and comprehensive loss presented with its Financial Statements:
| Province/ Territory Property |
Year ended December 31, |
|---|---|
| 2025 $ 2024 $ |
|
| Kliyul BC Chuchi BC Mariposa YT Eureka Dome YT Redton BC Chuchi South BC Onjo BC Orbison (Gap) BC RDP – Portion incurred by the Company BC RDP - Project management fees* BC General exploration |
1,195,978 410,547 14,783 1,785,381 101,124 88,561 8,380 - 956 110,888 956 9,514 956 1,534 - - 2,133,889 - - (2,083) 33,964 98,719 |
| **Total exploration expenses incurred by the Company: ** | 3,490,986 2,503,061 |
FINANCING ACTIVITIES
On March 26, 2025, the Company closed the first tranche of a non-brokered private placement issuing 618,823 flow-through units (“FT Units”) at a price of $0.17 per FT Unit for gross proceeds of $105,200 and 1,632,430 non-flow-through units (“NFT Units”) at a price of $0.14 per NFT Unit for gross proceeds of $228,540
Each FT Unit comprises of one common share of the Company issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) (each, a “FT Share”) and one common share purchase warrant. Each NFT Unit comprises one common share of the Company and one warrant. Each warrant is exercisable to purchase one additional non-flow-through common share at an exercise price of $0.20 any time on or before March 28, 2028. The Company incurred share issuance costs for this private placement of $33,927. The warrants were valued at $nil using the residual value and the Company recorded a flow-through premium of $18,565 offset by the allocation of $924 of share issuance costs.
The Company also issued 114,020 finder’s warrants with each warrant being exercisable at $0.20 per warrant, expiring on March 28, 2028. The Company fair valued the finder’s warrants at $11,642 using the Black-Scholes Option Pricing Model using the following assumptions: risk free rate – 2.51%; expected volatility – 110.93%, useful life – 3years; forfeiture rate – nil, expected dividends – nil.
On June 4, 2025, the Company closed the second tranche of a non-brokered private placement issuing 3,561,292 flow-through units (“FT Units”) at a price of $0.17 per FT Unit for gross proceeds of $605,420 and 15,184,494 non-flow-through units (“NFT Units”) at a price of $0.14 per NFT Unit for gross proceeds of $2,125,829.
Each FT Unit comprises one common share of the Company issued as a FT Share and one common share purchase warrant. Each NFT Unit is comprised of one common share of the Company and one warrant. Each warrant is exercisable to purchase one additional non-flow-through common share at an exercise price
Page 1 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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of $0.20 any time on or before June 4, 2028. The Company incurred share issuance costs for this private placement of $131,009. The warrants were valued at $nil using the residual value method and recorded a FT premium of $106,839 offset by the allocation of $3,230 of share issuance costs based on the share price on the date of issuance.
The Company also issued 373,872 finder’s warrants with each warrant being exercisable at $0.20 per warrant, expiring on June 4, 2028. The Company fair valued the finder’s warrants at $41,856 using the Black-Scholes Option Pricing Model using the following assumptions: risk free rate – 2.62%; expected volatility – 113.01%, useful life – 3 years; forfeiture rate – nil, expected dividends – nil.
On September 4, 2025, the Company closed the first tranche of a private placement issuing 1,804,000 flowthrough units (“FT Units”) at a price of $0.23 per FT Unit for gross proceeds of $414,920 and 11,390,000 nonflow-through units (“NFT Units”) at a price of $0.20 per NFT Unit for gross proceeds of $2,278,000.
Each FT Unit comprises one common share of the Company issued as a FT Share and one common share purchase warrant. Each NFT Unit is comprised of one common share of the Company and one warrant. Each warrant is exercisable to purchase one additional non-flow-through common share at an exercise price of $0.28 any time on or before September 5, 2028. The Company incurred share issuance costs for this private placement of $206,525. The warrants were valued at $0.01 using the residual value method and recorded a FT premium of $54,120 offset by the allocation of $4,865 of share issuance costs based on the share price on the date of issuance.
The Company also issued 651,480 finder’s warrants with each warrant being exercisable at $0.28 per warrant, expiring on September 5, 2028. The Company fair valued the finder’s warrants at $81,139 using the Black-Scholes Option Pricing Model using the following assumptions: risk free rate – 2.55%; expected volatility – 111.79%, useful life – 3 years; forfeiture rate – nil, expected dividends – nil.
On September 26, 2025, the Company closed the second tranche of a private placement issuing 1,726,434 flow-through units (“FT Units”) at a price of $0.23 per FT Unit for gross proceeds of $397,080 and 7,806,734 non-flow-through units (“NFT Units”) at a price of $0.20 per NFT Unit for gross proceeds of $1,561,347.
Each FT Unit comprises one common share of the Company issued as a FT Share and one common share purchase warrant. Each NFT Unit is comprised of one common share of the Company and one warrant. Each warrant is exercisable to purchase one additional non-flow-through common share at an exercise price of $0.28 any time on or before September 26, 2028. The Company incurred share issuance costs for this private placement of $115,555. The warrants were valued at $nil using the residual value method and recorded a FT premium of $51,793 offset by the allocation of $3,134 of share issuance costs based on the share price on the date of issuance.
The Company also issued 556,586 finder’s warrants with each warrant being exercisable at $0.28 per warrant, expiring on September 5, 2028. The Company fair valued the finder’s warrants at $69,955 using the Black-Scholes Option Pricing Model using the following assumptions: risk free rate – 2.51%; expected volatility – 113.01%, useful life – 3 years; forfeiture rate – nil, expected dividends – nil. 5
During the year ended December 31, 2025, the Company raised $1,522,619 through the issuance of flowthrough shares. The Company was able to incur the necessary exploration expenditures during the year and the flow-through liability at December 31, 2025 was $nil.
Page 2 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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On September 22, 2025, the Company issued 300,000 common shares at a fair value of $0.26 per share under the RDP agreement (note 3(d)).
RESULTS OF OPERATIONS
| 2025 | 2024 | |
|---|---|---|
| $ | $ | |
| Administrative expenses | ||
| Amortization | 9,358 | 61,693 |
| Finance lease interest | 62 | 2,710 |
| Insurance | 13,580 | 23,114 |
| Professional and consulting fees | 288,959 | 65,684 |
| Property investigation | 6,359 | - |
| Management and administrative | 442,326 | 398,554 |
| Office operations and facilities | 193,304 | 155,457 |
| Shareholder communications | 605,974 | 162,833 |
| Share-based payments | 805,335 | 5,458 |
| Transfer agent and regulatoryfees | 117,643 | 73,625 |
| 2,482,900 | 949,128 | |
| Exploration expenses (income) | ||
| Exploration and evaluation costs | 3,490,986 | 2,503,061 |
| Write-off of resource property | 116,518 | 61,000 |
| Miningtax credit | (13,122) | (31,677) |
| 3,594,382 | 2,532,384 | |
| Other expenses (income) | ||
| Interest | (11,330) | (25,669) |
| Foreign exchange | 7,825 | 4,163 |
| Amortization of flow-throughpremium | (219,164) | (151,125) |
| (222,669) | (172,631) | |
| Net loss for theperiod | (5,854,613) | (3,308,881) |
The Company has not yet determined whether any of its resource properties contain mineral reserves that are economically recoverable. All acquisition costs associated with the Company’s resource properties have been capitalized and direct costs associated with the exploration of these properties have been expensed as incurred.
Three months ended December 31, 2025
The Company had a net loss of $1,573,650 (2024 - $1,095,873) for the three months ended December 31, 2025, representing an increase of $477,777 over the three months ended December 31, 2025. The change in loss is primarily due to the following:
-
Shareholder communication increased by $314,222 as the Company increased external consulting and investor relations activities during the current period.
-
Professional and consulting increased by $49,322 as the Company engaged additional third-party consultants to assist with business and corporate development.
Page 3 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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- Share-based payments increased by $365,398 as the Company granted options during the current period to directors and officers.
Year ended December 31, 2025
The Company had a net loss of $5,854,613 (2024 - $3,308,881) for the year ended December 31, 2025, representing an increase of $2,545,732 over the year ended December 31, 2025. The change in loss is primarily due to the following:
-
Shareholder communication increased by $443,141 as the Company increased external consulting and investor relations activities during the current period.
-
Share-based payments increased by $799,877 as the Company granted options during the current period to directors and officers.
-
Exploration expenditures increased by $987,925 as the Company increased its project spend following the recent financings.
-
Professional and consulting increased by $223,275 as the Company engaged additional third party consultants for business and corporate development.
-
During the year ended December 31, 2025, the Company recorded a write-off of resource properties of $116,518 (2024 - $61,000)
SUMMARY OF QUARTERLY RESULTS
The following table sets forth a comparison of information for the previous eight quarters:
| Three Months | Ended($) | |||
|---|---|---|---|---|
| December 31, | September 30, | June 30, | March 31, | |
| 2025 | 2025 | 2025 | 2025 | |
| Revenue | - | - | - | - |
| Net loss | (1,573,650) | (3,128,737) | (855,762) | (296,464) |
| Basic and diluted loss per share* | (0.02) | (0.07) | (0.02) | (0.02) |
| Dividends per share | Nil | Nil | Nil | Nil |
| Total assets | 6,654,886 | 8,044,829 | 6,707,589 | 4,738,847 |
| Total long-term liabilities | - | - | - | - |
| Three Months | Ended($) | |||
| December 31, | September 30, | June 30, | March 31, | |
| 2024 | 2024 | 2024 | 2024 | |
| Revenue | - | - | - | - |
| Net loss | (1,095,873) | (1,358,204) | (455,801) | (399,003) |
| Basic and diluted loss per share* | (0.07) | (0.00) | (0.00) | (0.00) |
| Dividends per share | Nil | Nil | Nil | Nil |
| Total assets | 4,520,621 | 5,727,072 | 7,009,868 | 6,190,404 |
| Total long-term liabilities | - | - | - | - |
Page 4 of 12
Management’s Discussion and Analysis Year ended December 31, 2025
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Quarterly results
-
During Q1, Q2, Q3 and Q4, 2025, the Company concluded the financing activities described above, resulting in increased assets. The increase in loss during Q3 2025 compared to Q2 2025 is primarily driven by an increase in exploration expenditures during Q3 2025 as a result of the financings.
-
During Q4, 2025 the Company recorded a write-down of resource properties of $116,518 (2024 - $105,000).
LIQUIDITY AND CAPITAL RESOURCES
The Company is dependent on raising funds through the issuance of shares or disposition of interests in resource properties in order to finance further acquisitions, undertake exploration and meet general and administrative expenses.
As at December 31, 2025, the Company had cash on hand of $2,194,173. The Company’s working capital as at this date was approximately $2,162,649.
The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates that the Company will be able to continue its operations for at least twelve months from December 31, 2025, and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has not generated revenue from operations to date and will require additional financing or outside participation to undertake further advanced exploration of its mineral properties as well as for general administrative activities and operations. Future operations of the Company are dependent upon its ability to raise additional equity financing and maintain sufficient working capital or proceeds from the dispositions of its mineral property interests.
The Company’s operations to date have been financed by the issuance of common shares, the exercise of share purchase warrants, and the exercise of stock options. The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing. During the year ended December 31, 2025, the Company’s financing activities provided cash of $7,390,356 of which $1,522,619 were flowthrough funds, through a private placement financing. The Company incurred the required flow-through expenditures during the year ended December 31, 2025 and has a flow-through liability of $nil.
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Management’s Discussion and Analysis Year ended December 31, 2025
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RELATED PARTY TRANSACTIONS
Related parties include the board of directors and officers, close family members and enterprises that are controlled by these individuals as well as certain consultants performing similar functions.
The Company has no compensation arrangements with its board of directors other than non-cash stock option grants. In the case of senior officers of the Company, which include the Chairman, the President & CEO, and the CFO, the Company provides certain compensation for termination without cause and for a change of control of the Company.
Key management includes the board of directors and executive officers.
The following transactions with related parties took place:
| 2025 | 2024 | |
|---|---|---|
| $ | $ | |
| Management fees Chairman | 37,600 | 36,240 |
| Management fees CEO | 203,015 | 205,892 |
| Management fees CFO | 90,000 | 89,000 |
| Share-basedpayments | 458,948 | - |
| 789,563 | 331,132 |
All related party transactions were in the normal course of business and as at December 31, 2025, the Company had $21,302 (2024 - $38,308) owing to related parties.
OUTSTANDING SHARE DATA
All share information is reported as of the date of this MD&A in the following table:
| Number | |
|---|---|
| Issued and outstanding common shares | 62,628,964 |
| Share options with a weighted average exercise price of $0.52 | 5,337,500 |
| Warrants with a weighted average exerciseprice of$0.33 | 48,616,382 |
| Fully diluted capital: | 116,582,846 |
OFF-BALANCE SHEET ARRANGEMENTS
The Company has no off-balance sheet arrangements.
PROPOSED TRANSACTIONS
There are no proposed transactions as of the date of this MD&A.
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Management’s Discussion and Analysis Year ended December 31, 2025
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CHANGES IN ACCOUNTING POLICIES
Changes in the Company’s accounting policies are disclosed in Note 2 of the accompanying Financial Statements.
FINANCIAL INSTRUMENTS
The Company has classified cash, other receivables, and trade payable and accrued liabilities at amortized cost.
Fair values
As at December 31, 2025, the recorded amounts for cash, other receivables and trade payable and accrued liabilities approximate their fair values due to their short maturity. No financial instruments were considered level 3, which are fair value measurements derived from valuation techniques that include significant inputs that are not based on observable market data.
Interest rate risk
The Company’s cash held in financial institutions earns interest at variable interest rates. However, due to the short-term nature of these financial instruments, fluctuations in market rates do not have a material impact on the expected cash flows.
Credit risk
The Company has its cash deposited at one of Canada’s largest banks with an AA rating and therefore exposed to minimal credit risk.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk by forecasting cash flows from operations and anticipated investing and financing activities and through the management of its capital structure. At December 31, 2025, the Company had cash of $2,194,173 (2024 - $12,095), trade payable and accrued liabilities of $90,435 (2024 - $156,146), a financial liability of $4,817 (2024 – $4,817) and lease liabilities of $nil (2024 - $4,203). At December 31, 2025, there exists material uncertainty with respect to the Company’s ability to continue as a going concern. Refer to Note 1 of the Financial Statements.
Currency risk
As at December 31, 2025, the Company kept less than 1% of its cash in US dollars. A change in the value of the US dollar by 10% relative to the Canadian dollar would affect the Company’s working capital by an immaterial amount.
Price risk
As the Company no longer holds any marketable securities, there is no price risk at December 31, 2025.
CRITICAL ACCOUNTING ESTIMATES
The Company makes estimates and assumptions concerning the future that will, by definition, seldom equal actual results. The following are the areas of estimate and judgment applied by management that
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Management’s Discussion and Analysis Year ended December 31, 2025
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most significantly affects the Company's financial statements. These estimates and judgments have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Management applies judgment in reviewing for impairment indicators the carrying value of the resource properties on a quarterly basis, or whenever events or circumstances indicate that their carrying value may not be recovered. If there are indicators of impairment, the recoverable amount of the related asset is estimated in order to determine the extent of any impairment. Indicators of impairment may include (i) the period during which the Company has the right to explore in the specific area has expired during the year or will expire in the near future and is not expected to be renewed, (ii) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned, (iii) exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; and (iv) sufficient data exists to indicate that the carrying amount of the resource properties is unlikely to be recovered in full from successful development or by sale. During the year ended December 31, 2025, the Company wrote-off the Chuchi and Orbison projects.
Risk factors
The Company is subject to a number of risks due to the nature of its business and the present stage of exploration projects. The following factors should be considered:
Mineral Exploration and Development
The Company’s properties are in the exploration stage and are without a known body of commercial ore. Development of any of the Company’s properties will only follow upon obtaining satisfactory exploration results. Mineral exploration and development involve a high degree of risk and few properties which are explored are ultimately developed into producing mines. There is no assurance that the Company’s mineral exploration and development activities will result in the discovery of a body of commercial ore on any of its properties. Several years may pass between the discovery and the development of commercial mineable mineralized deposits. Most exploration projects do not result in the discovery of commercially mineralized deposits.
Trends
The Company's financial success is dependent upon the discovery of mineral resources which could be economically viable to develop. Such development could take years to complete and the resulting income, if any, is difficult to determine. The sales value of any mineralization discovered by the Company is largely dependent upon factors beyond the Company's control, such as market value of the products produced and availability of capital from the public marketplace. Other than as disclosed herein, the company is not aware of any trends, uncertainties, demands, commitments or events which are reasonably likely to have a material effect on the Company's results or financial position.
Operating Hazards and Risks
Mineral exploration involves many risks. The operations in which the Company has a direct or indirect interest will be subject to all the hazards and risks normally incidental to exploration, development and production of resources, any of which could result in work stoppages and damage to persons or property or the environment and possible legal liability for any and all damage. Fires, power outages, labour disruptions, flooding, explosions, cave-ins, landslides and the inability to obtain suitable or adequate machinery, equipment or labour are some of the risks involved in the operation of mines and the conduct
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Management’s Discussion and Analysis Year ended December 31, 2025
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of exploration programs. Although the Company will, when appropriate, secure liability insurance in an amount which it considers adequate, the nature of these risks is such that liabilities might exceed policy limits, the liability and hazards might not be insurable, or the Company might elect not to insure itself against such liabilities due to high premium costs or other reasons, in any of which events the Company could incur significant costs that could have a material adverse effect upon its financial condition.
Economics of Developing Mineral Properties
Substantial expenditures are required to establish ore reserves through drilling, to develop metallurgical processes to extract metal from ore and to develop the mining and processing facilities and infrastructure at any site chosen for mining. No assurance can be given that minerals will be discovered in sufficient quantities to justify commercial operation or that the funds required for development can be obtained on a timely basis.
The marketability of any minerals acquired or discovered may be affected by numerous factors which are beyond the Company’s control, and which cannot be predicted, such as market fluctuations, the proximity and capacity of milling facilities, mineral markets and processing equipment, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals, and environmental protection. Depending on the price of minerals produced, the Company may determine that it is impractical to commence or continue commercial production.
Environmental Factors
The Company conducts exploration activities in various parts of Canada. Such activities are subject to various laws, rules and regulations governing the protection of the environment, including, in some cases, posting of reclamation bonds. Extensive environmental legislation has been enacted in Canada by federal, provincial and territorial governments and in the United States by federal and state governments. All phases of the Company’s operations are subject to environmental regulation in the jurisdictions in which it operates. Environmental legislation is evolving in a manner which requires stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed properties and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the Company’s operations.
The cost of compliance with changes in governmental regulations has the potential to reduce the profitability of operations or to preclude entirely the economic development of a property. Environmental hazards may exist on the Company’s properties, which hazards are unknown to the Company at present, which have been caused by previous or existing owners or operators of the properties. The Company is not aware of any environmental hazards on any of the properties held or formerly worked by the Company. The approval of new mines in Canada is subject to detailed review through a clearly established public hearing process, pursuant to both the Federal Canadian Environmental Assessment Act and the provincial and territorial Environmental Review Agencies. Further, under such review process, there is no assurance that regulatory and environmental approvals will be obtained on a timely basis or at all. Failure to comply with the legislation may have serious consequences. Orders may be issued requiring operations to cease or be curtailed or requiring installation of additional facilities or equipment. Violators may be required to compensate those suffering loss or damage by reason of its mining activities and may be fined if convicted of an offense under such legislation.
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Management’s Discussion and Analysis Year ended December 31, 2025
Canadian provincial and territorial state mining legislation establishes requirements for the decommissioning, reclamation and rehabilitation of mining properties in a state of temporary or permanent closure. Such closure requirements relate to the protection and restoration of the environment and the protection of the public safety. Some former mining properties must be managed for long periods of time following closure in order to fulfill closure requirements. The costs of closure of mining properties, and, in particular, the cost of long-term management of mining properties can be substantial. The Company intends to progressively rehabilitate its mining properties during their period of operation, should any properties become operational, so as to reduce the cost of fulfilling closure requirements after the termination or suspension of production.
The Company has adopted environmental practices designed to ensure that it continues to comply with or exceeds all environmental regulations currently applicable to it. All of the Company’s activities are in compliance in all material respects with applicable environmental legislation. The Company is currently engaged in exploration with minimal environmental impact.
Title
Although the Company has exercised the usual due diligence with respect to title to properties in which it has a material interest, there is no guarantee that title to the properties will not be challenged or impugned. The Company’s mineral property interests may be subject to prior unregistered agreements or transfers, or native land claims and title may be affected by undetected defects. Before a number of claims under option can be recorded in the Company’s name, the underlying title holder has to assign title to the Company once the Company satisfies its option agreement obligations. There are no assurances that the underlying title holder will assign title. Land may be transferred by the State to businesses and citizens for possession and use based on leases.
Canadian Aboriginal Land Claims
Canadian Aboriginal rights may be claimed on properties or other types of tenure with respect to which mining rights have been conferred. The Company is aware of the mutual benefits afforded by cooperative relationships with indigenous people in conducting exploration activity and is generally supportive of measures established to achieve such cooperation. While there is, to the Company’s knowledge, no specific existing claim in respect of any of its properties, the advent of any future aboriginal land claims and the outcome of any aboriginal land claims negotiations or related issues cannot be predicted.
Competition and Agreements with Other Parties
The Company competes with other mining companies for the acquisition of mineral claims and other mining interests as well as for the recruitment and retention of qualified employees and contractors. There is significant and increasing competition for a limited number of resource acquisition opportunities and as a result, the Company may be unable to acquire attractive mining properties on terms it considers acceptable. The Company competes with other companies that may have substantially greater financial resources than the Company. The Company may, in the future, be unable to meet its obligations under agreements to which it is a party, and the Company may have its interest in the properties subject to such agreements reduced as a result. Furthermore, if other parties to such agreements do not meet their share of such costs, the Company may be unable to finance the cost required to complete recommended programs.
Governmental Regulation
Operations, development and exploration on the Company’s properties are affected to varying degrees by: (i) government regulations relating to such matters as environmental protection, health, safety and labour;
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Management’s Discussion and Analysis Year ended December 31, 2025
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(ii) mining law reform; (iii) restrictions on production, price controls, and tax increases; (iv) maintenance of claims; (v) tenure; and (vi) expropriation of property. There is no assurance that future changes in such regulation, if any, will not adversely affect the Company’s operations. Changes in such regulation could result in additional expenses and capital expenditures, availability of capital, competition, reserve uncertainty, potential conflicts of interest, title risks, dilution, and restrictions and delays in operations, the extent of which cannot be predicted.
The Company is at the exploration stage on all of its properties. Exploration on the Company’s properties requires responsible best exploration practices to comply with Company policy, government regulations, and maintenance of claims and tenure. The Company is required to be registered to do business and have a valid prospecting license (required to prospect or explore for minerals on Crown Mineral land or to stake a claim) in any Canadian province or territory in which it is carrying out work. Mineral exploration primarily falls under provincial or state jurisdiction. However, the Company is also required to follow the regulations pertaining to the mineral exploration industry that fall under federal jurisdictions, such as the Fish and Wildlife Act in Canada and the Environmental Protection Agency in the United States.
If any of the Company’s projects are advanced to the development stage, those operations will also be subject to various laws and regulations concerning development, production, taxes, labour standards, environmental protection, mine safety and other matters. In addition, new laws or regulations governing operations and activities of mining companies could have a material adverse impact on any project in the mine development stage that the Company may possess.
Metals Prices
The Company’s revenues, if any, and ability to attract equity financing is expected to be in large part derived from the discovery of mineral properties and the sale of minerals contained or interests related thereto. The prices of those commodities may fluctuate widely and are affected by numerous factors beyond the Company’s control including international economic and political conditions, expectations of inflation, international currency exchange rates, interest rates, global or regional consumptive patterns, speculative activities, levels of supply and demand, increased production due to new mine developments and improved mining and production methods, availability and costs of metal substitutes, metal stock levels maintained by producers and other and inventory carrying costs. The effect of these factors on the price of base and precious metals, and therefore the economic viability of the Company’s operations, cannot accurately be predicted.
Management and Directors
The Company is dependent on its key management personnel. Loss of the key person could have an adverse effect on the Company. The Company does not maintain “key-man” insurance in respect of any of its management.
Conflicts of Interest
Certain of the Directors and Officers of the Company are also in their personal capacities, or as Directors or Officers of other companies, engaged in mineral exploration and development. Accordingly, exploration opportunities or prospects of which they become aware may not necessarily be made available to the Company. The Directors and Officers intend to allocate opportunities or prospects from time to time on the basis of prudent business judgment. The Directors are required by law to act honestly and in good faith with a view to the best interest of the Company and its shareholders and to disclose any personal interest
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Management’s Discussion and Analysis Year ended December 31, 2025
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which they may have in any material transaction which is proposed to be entered into with the Company and to abstain from voting as a Director for the approval of such transaction.
Price Fluctuations: Share Price Volatility
In recent years, the international securities markets have experienced high levels of price and volume volatility, and the market prices of securities of many mineral exploration companies have experienced wide fluctuations which have not necessarily been related to the operating performance, underlying asset values or prospects of such companies. There can be no assurance that the continual fluctuations in market price will not occur which may impact the Company’s market capitalization as well as its ability to facilitate equity financing.
Geopolitical conflicts
While the Company has no operations, projects or personnel in Europe or the middle east, international conflicts add potential elements of risk such as inflationary pressures affecting prices of fuel and supplies, as well as supply chain delays. These risks could potentially affect the cost and timely development of its exploration programs.
Tariffs
Potential tariffs and counter tariffs between the USA and Canada could result in higher prices for goods and services or make them unavailable altogether. Should provincial governments place export restrictions it may be viewed as worsening the attractiveness of non-export jurisdiction to foreign capital. The extent and duration of tariff matters are not determinable by the Company and it is unlikely to have material control over tariff consequences. While the Company has no operations outside of Canada, tariffs add potential elements of risk such as inflationary pressures affecting prices of supplies, commodity prices and overall market conditions.
FINANCIAL AND DISCLOSURE CONTROLS AND PROCEDURES
In connection with National Instrument 52-109 (Certificate of Disclosure in Issuer’s Annual and Interim Filings) (“NI 52-109”), the Chief Executive Officer and Chief Financial Officer of the Company have filed a Venture Issuer Basic Certificate with respect to the financial information contained in the consolidated financial statements for the year ended December 31, 2025 and 2024, and this accompanying MD&A (together, the “Annual Filings”).
In contrast to the full certificate under NI 52-109, the Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures and internal control over financial reporting, as defined in NI 52-109. For further information, the reader should refer to the Venture Issuer Basic Certificates filed by the Company with the Annual Filings on SEDAR+ at www.sedarplus.ca.
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