Playfair Mining Ltd. — Audit Report / Information 2025

Aug 7, 2025

PLAYFAIR MINING LTD.

CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

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DAVIDSON & COMPANY LLP
Chartered Professional Accountants

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of Playfair Mining Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Playfair Mining Ltd. (the "Company"), which comprise the consolidated statements of financial position as at February 28, 2025 and February 29, 2024, and the consolidated statements of loss and comprehensive loss, cash flows, and changes in shareholders' equity (deficiency) for the years then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Company as at February 28, 2025 and February 29, 2024, and its financial performance and its cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board.

Basis for Opinion

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

Material Uncertainty Related to Going Concern

We draw attention to Note 1 of the consolidated financial statements, which indicates that the Company has a working capital deficiency of $296,897 as at February 28, 2025. As stated in Note 1, these events and conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Key Audit Matters

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

In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined the matter described below to be the key audit matter to be communicated in our auditor's report.

Assessment of Impairment Indicators of Exploration and Evaluation Assets ("E&E Assets")

As described in Note 5 to the consolidated financial statements, the carrying amount of the Company's E&E Assets was $17,890 as of February 28, 2025. As more fully described in Notes 2 and 3 to the consolidated financial statements, management assesses E&E Assets for indicators of impairment at each reporting period.

A member of Nexia International

1200 - 609 Granville Street, P.O. Box 10372, Pacific Centre, Vancouver, B.C., Canada V7Y 1G6
Telephone (604) 687-0947 Davidson-co.com

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The principal considerations for our determination that the assessment of impairment indicators of the E&E Assets is a key audit matter are that there was judgment made by management when assessing whether there were indicators of impairment for the E&E Assets, specifically relating to the assets' carrying amount which is impacted by the Company's intent and ability to continue to explore and evaluate these assets. This in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures to evaluate audit evidence relating to the judgments made by management in their assessment of indicators of impairment that could give rise to the requirement to prepare an estimate of the recoverable amount of the E&E Asset.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. Our audit procedures included, among others:

• Evaluating management's assessment of impairment indicators.
• Evaluating the intent for the E&E Assets through discussion and communication with management.
• Reviewing the Company's recent expenditure activity.
• Assessing compliance with agreements and expenditure requirements including reviewing option agreements and vouching cash payments and share issuances.
• Assessing the Company's rights to explore E&E Assets including sending confirmation requests to optionors to ensure good standing of agreements.
• Obtaining, on a test basis through government websites, confirmation of title to ensure mineral rights underlying the E&E Assets are in good standing.

Other Information

Management is responsible for the other information. The other information obtained at the date of this auditor's report includes Management's Discussion and Analysis.

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

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

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

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

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

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

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

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

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

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As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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

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

Vancouver, Canada

August 6, 2025

Chartered Professional Accountants

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PLAYFAIR MINING LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in Canadian Dollars)
AS AT

	February 28, 2025	February 29, 2024
ASSETS
Current
Cash	$ 12,885	$ 3,816
Receivables	3,230	2,899
Prepaid expenses (Note 6)	-	40,333
	16,115	47,048
Advances (Notes 4 and 6)	59,005	88,174
Exploration and evaluation assets (Note 5)	17,890	29,726
	$ 93,010	$ 164,948
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current
Accounts payable and accrued liabilities (Note 6)	$ 313,012	$ 301,020
Shareholders' deficiency
Share capital (Note 8)	36,169,451	35,674,095
Subscriptions receivable (Note 8)	(362,500)	(142,500)
Subscriptions in advance (Note 12)	45,000	-
Reserves (Note 8)	834,185	1,111,139
Deficit	(36,906,138)	(36,778,806)
	(220,002)	(136,072)
	$ 93,010	$ 164,948

Nature and continuance of operations (Note 1)
Subsequent event (Note 12)

Approved and authorized by the Board on August 6, 2025.

Donald G. Moore

Director

D. Neil Briggs

Director

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

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PLAYFAIR MINING LTD.
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Expressed in Canadian Dollars)
FOR THE YEAR ENDED

	February 28, 2025	February 29, 2024
GENERAL AND ADMINISTRATIVE EXPENSES
Filing fees	$ 10,190	$ 14,728
Insurance	-	871
Management fees (Note 6)	30,000	60,000
Office and miscellaneous	33,399	55,815
Professional fees (Note 6)	8,861	73,697
Property exploration costs (Note 5)	9,200	-
Rent	19,519	19,303
Shareholder communication	23,798	17,687
Telephone	8,980	13,051
Transfer agent and regulatory fees	11,547	5,279
Travel and trade shows	4,486	9,776
	(159,980)	(270,207)
OTHER ITEMS
Recovery of expenses (Note 5)	28,600	-
Write-off of exploration and evaluation assets (Note 5)	(72,550)	(3,215,204)
Loss on debt extinguishment	-	(360)
Foreign exchange loss	-	(206)
Loss and comprehensive loss for the year	$ (203,930)	$ (3,485,977)
Basic and diluted loss per common share	$ (0.00)	$ (0.03)
Weighted average number of common shares outstanding – basic and diluted	129,132,913	126,286,612

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

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PLAYFAIR MINING LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in Canadian Dollars)
FOR THE YEAR ENDED

	February 28, 2025	February 29, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the year	$ (203,930)	$ (3,485,977)
Items not affecting cash:
Write-off of exploration and evaluation assets	72,550	3,215,204
Loss on debt extinguishment	-	360
Changes in non-cash working capital items:
Receivables	(331)	258
Prepaid expenses	46,333	(11,596)
Accounts payables and accrued liabilities	82,971	226,242
Net cash provided by/used in operating activities	(2,407)	(55,509)
CASH FLOWS FROM INVESTING ACTIVITIES
Advances to related party, net of repayments	(42,634)	(222,670)
Exploration and evaluation expenditures	(50,890)	(135,896)
Net cash used in investing activities	(93,524)	(358,566)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common shares	-	402,000
Share issuance costs	-	(3,500)
Subscription receivable	60,000	-
Subscription received in advance	45,000	-
Net cash provided by financing activities	105,000	398,500
Change in cash for the year	9,069	(15,575)
Cash, beginning of year	3,816	19,391
Cash, end of year	$ 12,885	$ 3,816

Supplemental disclosure with respect to cash flows (Note 9)

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

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PLAYFAIR MINING LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY)
(Expressed in Canadian Dollars)

	Share Capital
	Number	Amount	Reserves	Subscriptions receivable	Subscriptions received in advance	Deficit	Total
Balance at February 28, 2023	117,497,160	$ 35,139,775	$ 1,126,459	$ (22,000)	$ -	$ (33,292,829)	$ 2,951,405
Issued for:
Private placement	10,000,000	500,000	-	(120,500)	-	-	379,500
Exercise of stock options	450,000	37,820	(15,320)	-	-	-	22,500
Share issue costs	-	(3,500)	-	-	-	-	(3,500)
Loss for the year	-	-	-	-	-	(3,485,977)	(3,485,977)
Balance at February 29, 2024	127,947,160	35,674,095	1,111,139	(142,500)	-	(36,778,806)	(136,072)
Issued for:
Private placement	-	-	-	60,000	45,000	-	105,000
Exercise of stock options	1,400,000	480,356	(200,356)	(280,000)	-	-	-
Shares issued for property acquisition	1,000,000	15,000	-	-	-	-	15,000
Expiry of options	-	-	(76,598)	-	-	76,598	-
Loss for the year	-	-	-	-	-	(203,930)	(203,930)
Balance at February 28, 2025	130,347,160	$ 36,169,451	$ 834,185	$ (362,500)	45,000	$ (36,906,138)	$ (220,002)

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

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

1. NATURE AND CONTINUANCE OF OPERATIONS

Playfair Mining Ltd. (the “Company”) is an exploration stage company incorporated under the laws of the Province of British Columbia on August 26, 1988. The Company has not yet determined whether its exploration and evaluation assets contain economic ore reserves.

The Company’s registered and records office is 2900-595 Burrard Street, Vancouver, British Columbia, Canada.

These consolidated financial statements have been prepared in accordance with IFRS Accounting Standards (“IFRS”) with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred ongoing losses, including $203,930 in fiscal 2025 resulting in a deficit of $36,906,138 as at February 28, 2025. A number of alternatives including, but not limited to completing a financing, are being evaluated with the objective of funding ongoing activities and obtaining additional working capital. As at February 28, 2025 the Company had working deficiency of $296,897 (2024 - $253,972). The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and to commence profitable operations in the future and repay its liabilities arising from normal business operations as they become due. These material uncertainties may cast significant doubt about the Company’s ability to continue as a going concern.

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

2. BASIS OF PREPARATION

Statement of compliance

These consolidated financial statements, including comparatives have been prepared using accounting policies consistent with IFRS as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments classified as financial instruments at fair value through profit and loss, which are stated at their fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information.

Critical accounting estimates

The preparation of these consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported expenses during the year. Actual results could differ from these estimates.

Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a material adjustment to the carrying amounts of assets and liabilities in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:

i) The carrying value and the recoverability of exploration and evaluation assets, which are included in the statements of financial position. The cost model is utilized and the value of the exploration and evaluation assets is based on the expenditures incurred. At every reporting period, management assesses the potential impairment which involves assessing whether or not facts or circumstances exist that suggest the carrying amount exceeds the recoverable amount.

ii) The valuation of shares issued in non-cash transactions, including shares issued for property option payments and in the settlement of debt. Generally, the valuation of non-cash transactions is based on the value of the goods or services received. When non-cash transactions are entered into with employees and those providing similar services, the non-cash transactions are measured at the fair value of the consideration given up using market prices.

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

2. BASIS OF PREPARATION (cont'd...)

Critical accounting estimates (cont'd...)

iii) The recognition of deferred tax assets. The Company consider whether the realization of deferred tax assets is probable in determining whether or not to recognize these deferred tax assets.

3. MATERIAL ACCOUNTING POLICY INFORMATION

Basis of consolidation

These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary.

Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of the Company’s subsidiary are included in the consolidated financial statements from the date that control commences until the date that control ceases.

Significant inter-company transactions and balances have been eliminated on consolidation. During fiscal 2022, the Company incorporated a new wholly-owned subsidiary, Playfair Mining Norway AS, on October 5, 2021 and wound up during fiscal 2025.

Financial instruments

Financial assets

The Company recognizes a financial asset when it becomes a party to the contractual provisions of the instrument. The Company classifies financial assets at initial recognition as financial assets: measured at amortized cost, measured at fair value through other comprehensive income or measured at fair value through profit or loss.

Financial assets measured at amortized costs

A financial asset that meets both of the following conditions is classified as a financial asset measured at amortized cost.

• The Company’s business model for such financial assets is to hold the assets in order to collect contractual cash flows.
• The contractual terms of the financial asset gives rise on specified dates to cash flows that are solely payments of principal and interest on the amount outstanding.

A financial asset measured at amortized cost is initially recognized at fair value plus transaction costs directly attributable to the asset. After initial recognition, the carrying amount of the financial asset measured at amortized cost is determined using the effective interest method, net of impairment loss, if necessary.

Financial assets measured at fair value through other comprehensive income ("FVTOCI")

A financial asset measured at fair value through other comprehensive income is recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, the asset is measured at fair value with changes in fair value included as “financial asset at fair value through other comprehensive income” in other comprehensive income.

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

3. MATERIAL ACCOUNTING POLICY INFORMATION (cont'd...)

Financial instruments (cont'd...)

Financial assets (cont'd...)

Financial assets measured at fair value through profit or loss ("FVTPL")

A financial asset measured at fair value through profit or loss is recognized initially at fair value with any associated transaction costs being recognized in profit or loss when incurred. Subsequently, the financial asset is re-measured at fair value, and a gain or loss is recognized in profit or loss in the reporting period in which it arises.

The Company derecognizes a financial asset if the contractual rights to the cash flows from the asset expire, or the Company transfers substantially all the risks and rewards of ownership of the financial asset. Any interests in transferred financial assets that are created or retained by the Company are recognized as a separate asset or liability. Gains and losses on derecognition are generally recognized in profit or loss. However, gains and losses on derecognition of financial assets classified as FVTOCI remain within accumulated other comprehensive income (loss).

The Company assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired.

For financial assets measured at amortized cost, and debt investments at FVTOCI, the Company applies the expected credit loss impairment model. On adoption of the expected credit loss model there was no material adjustment.

The Company assesses all information available, including on a forward-looking basis, the expected credit losses associated with its assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset at the reporting date, with the risk of default as at the date of initial recognition, based on all information available, and reasonable and supportive forward-looking information.

Financial liabilities

Financial liabilities are classified as amortized cost, based on the purpose for which the liability was incurred. These liabilities are initially recognized at fair value net of any transaction costs directly attributable to the issuance of the instrument and subsequently carried at amortized cost using the effective interest rate method. This ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the statement of financial position. Interest expense in this context includes initial transaction costs and premiums payable on redemptions, as well as any interest or coupon payable while the liability is outstanding.

Accounts payable and accrued liabilities represent liabilities for goods and services provided to the Company prior to the end of the period, which are unpaid. Accounts payable and accrued liabilities are unsecured.

The Company has made the following designations of its financial instruments:

Cash	Amortized cost
Receivables	Amortized cost
Advances	Amortized cost
Accounts payable and accrued liabilities	Amortized cost

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

3. MATERIAL ACCOUNTING POLICY INFORMATION (cont'd...)

Financial instruments (cont'd...)

Financial liabilities (cont'd...)

Financial instruments measured at fair value are classified into one of the three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

Level 3 – Inputs that are not based on observable market data.

Exploration and evaluation assets

Exploration and evaluation assets include the costs of acquiring licenses, costs associated with exploration and evaluation activity, and the fair value (at acquisition date) of exploration and evaluation assets acquired in a business combination. All costs related to the acquisition, exploration and development of mineral properties are capitalized by property as an intangible asset. Costs incurred before the Company has obtained the legal rights to explore an area are recognized in profit or loss.

Exploration and evaluation assets are assessed for impairment if (i) sufficient data exists to determine technical feasibility and commercial viability and (ii) facts and circumstances suggest that the carrying amount exceeds the recoverable amount. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified to mining property and development assets within property, plant and equipment.

Recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.

Impairment

At the end of each reporting period, the Company’s assets are reviewed to determine whether there is any indication that those assets may be impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

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PLAYFAIR MINING LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
FOR THE YEAR ENDED FEBRUARY 28, 2025

3. MATERIAL ACCOUNTING POLICY INFORMATION (cont'd...)

Provisions

a) Environmental rehabilitation provisions

The Company recognizes liabilities for statutory, contractual, constructive or legal obligations, including those associated with the reclamation of exploration and evaluation assets and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. Initially, a liability for an environmental rehabilitation obligation is recognized at its fair value in the period in which it is incurred if a reasonable estimate of cost can be made. The Company records the present value of estimated future cash flows associated with reclamation as a liability when the liability is incurred and increases the carrying value of the related assets for that amount. Subsequently, these capitalized asset retirement costs are amortized over the life of the related assets. At the end of each period, the liability is increased to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying any initial estimates (additional rehabilitation costs). The Company recognizes its environmental liability on a site-by-site basis when it can be reliably estimated.

Environmental expenditures related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible are charged to profit or loss. The Company had no rehabilitation obligations for the years presented.

b) Other provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) that has arisen as a result of a past event and it is probable that a future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the obligation. An amount equivalent to the discounted provision is capitalized and is amortized over the useful lives of the related assets. The increase in the provision due to passage of time is recognized as interest expense.

Foreign exchange

The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for Playfair, the parent, and its wholly owned subsidiary, to be the Canadian dollar. The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates.

Transactions in currencies other than the Canadian dollar are recorded at exchange rates prevailing on the dates of the transactions. At the end of each reporting period, the monetary assets and liabilities of the Company that are denominated in foreign currencies are translated at the exchange rate at the reporting date, while non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in the statement of loss and comprehensive loss in the period in which they arise.

Warrants

As part of its private placements, the Company may issue warrants and brokers' warrants. Any warrants that expire or are exercised during the year are transferred back to share capital, if originally determined to have a value. The Company values warrants as part of a private placement offering under the residual value approach.

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

3. MATERIAL ACCOUNTING POLICY INFORMATION (cont'd...)

Loss per share

Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of shares outstanding during the year. Diluted loss per share is computed similar to basic loss per share as the assumed exercise of stock options and warrants would be anti-dilutive. The number of additional shares is calculated by assuming that outstanding stock options and warrants were exercised and that the proceeds from such exercises were used to acquire common stock at the average market price during the reporting periods.

Share-based payments

The Company grants stock options and compensatory warrants to acquire common shares of the Company to directors, officers, employees and consultants. An individual is classified as an employee when the individual is an employee for legal or tax purposes, or provides services similar to those performed by an employee.

The fair value of stock options is measured on the date of grant, using the Black-Scholes option pricing model, and is recognized over the vesting period. Consideration paid for the shares on the exercise of stock options is credited to share capital.

In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, they are measured at the fair value of the share-based payment. Otherwise, share-based payments are measured at the fair value of goods or services received.

If and when the stock options are exercised, the applicable amounts of reserves are transferred to share capital. When vested options are forfeited or not exercised at the expiry date the amount previously recognized in share-based payments is transferred from reserves to deficit.

Income taxes

Income tax on the profit or loss for the years presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous years.

Deferred tax is recorded using the statement of financial position liability method, providing for temporary differences, between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that affect neither accounting or taxable loss; and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the statement of financial position date.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.

Additional income taxes that arise from the distribution of dividends are recognized at the same time as the liability to pay the related dividend. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

3. MATERIAL ACCOUNTING POLICY INFORMATION (cont'd...)

Changes in accounting standards and accounting standards issued but not yet effective

During the year ended February 28, 2025, the Company adopted the following amendment:

IAS 1 Presentation of Financial Statements

Presentation of Financial Statements (“IAS 1”) was amended in January 2020 to provide a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. The amendments clarify that the classification of liabilities as current or noncurrent is based solely on a company’s right to defer settlement at the reporting date. The right needs to be unconditional and must have substance. The amendments also clarify that the transfer of a company’s own equity instruments is regarded as settlement of a liability, unless it results from the exercise of a conversion option meeting the definition of an equity instrument.

The adoption of this amendment did not have a material impact on the consolidated financial statements.

IFRS 18 - Presentation and Disclosure in Financial Statements

The IASB has issued IFRS 18 - Presentation and Disclosure in Financial Statements which will be effective for the Company’s fiscal year beginning March 1, 2027. The objective of IFRS 18 is to set out requirements for the presentation and disclosure of information in financial statements to help ensure they provide relevant information that faithfully represents an entity’s assets, liabilities, equity, income, and expenses. IFRS 18 is accompanied by limited amendments to the requirements in IAS 7 Statement of Cash Flows.

The Company has not determined the effect of IFRS 18 on its consolidated financial statements.

As of the date of authorization of these consolidated financial statements, certain new standards and amendments to existing standards have been published by the IASB that are not yet effective and have not been adopted early by the Company. Management anticipates that all relevant pronouncements will be adopted in the Company’s accounting policies for the first period beginning after the effective date of the pronouncement. New standards, interpretations and amendments are either not adopted or are not expected to have a material impact on the Company’s consolidated financial statements.

4. ADVANCES

The Company advances funds to a management company owned by a former officer. The management company incurs administration expenditures and settles certain exploration expenditures on behalf of the Company. At February 28, 2025 the Company had advanced $59,005 (February 29, 2024 - $88,174). The advances were unsecured and non-interest bearing.

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

1. EXPLORATION AND EVALUATION ASSETS

February 28, 2025	Folldal Project	Osterdalen Project	Golden Circle	Total
Acquisition costs:
Balance, beginning of year	$ 10,579	$ 3,013	$ -	$ 13,592
Acquisition costs	-	-	17,890	17,890
Write-off of exploration and evaluation assets	(10,579)	(3,013)	-	(13,592)
Balance, end of year	-	-	17,890	17,890
Exploration costs:
Balance, beginning of year	16,134	-	-	16,134
Fees & license	104	42,720	-	42,824
Write-off of exploration and evaluation assets	(16,238)	(42,720)	-	(58,958)
Balance, end of year	-	-	-	-
Balance, February 28, 2025	$ -	$ -	$ 17,890	$ 17,890
February 29, 2024	RKV Project	Folldal Project	Osterdalen Project	Total
---	---	---	---	---
Acquisition costs:
Balance, beginning of year	$ 915,615	$ 10,579	$ 3,013	$ 929,207
Write-off of exploration and evaluation assets	(915,615)	-	-	(915,615)
Balance, end of year	-	10,579	3,013	13,592
Exploration costs:
Balance, beginning of year	2,193,807	-	-	2,193,807
Assay	-	-	-	-
Exploration advance	50,000	-	-	50,000
Fees & license	14,482	16,134	-	30,616
Field personnel	89	-	-	89
Project administration	330	-	-	330
Royalty advance	40,304	-	-	40,304
Transportation	577	-	-	577
Write-off of exploration and evaluation assets	(2,299,589)	-	-	(2,299,589)
Balance, end of year	-	16,134	-	16,134
Balance, February 29, 2024	$ -	$ 26,713	$ 3,013	$ 29,726

Title to mineral properties

Title to mineral properties involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many mineral properties. The Company has investigated title to all of its mineral properties and, to the best of its knowledge, title to all of its properties are in good standing.

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

5. EXPLORATION AND EVALUATION ASSETS (cont'd...)

Golden Circle Project property, Canada

During fiscal 2025, the Company entered into an option agreement with ExplORE Resources Limited to purchase 100% of the Golden Circle Project in Nova Scotia, Canada. The total option price is $650,000 payable over 3 years (of which $130,000 was paid subsequent to February 28, 2025) with 5 licenses subject to a 3% NSR and 4 licenses subject to a 1% NSR. For the 5 licenses with the 3% NSR, the Company has the right at any time to buy out up to 2/3 of each NSR upon payment (on each license) of $500,000 for the first 1/3 (i.e. 1% NSR) and $1,000,000 for the second 1/3 (i.e. 1% NSR). For the 4 licenses with the 1% NSR, the Company has no right to buy out the NSR. The Company issued 1,000,000 common shares valued at $15,000 to ExplORE in consideration of an initial 90-day due diligence period and paid license fees of $2,890.

Folldal Project property, Norway

During fiscal 2023, the Company acquired exploration rights on Folldal Project directly from the Norwegian government by application to the Directorate of Mining. The Company has decided not to continue exploration of the Folldal project and recorded an impairment of $26,817 during fiscal 2025.

Osterdalen Project property, Norway

During fiscal 2023, the Company acquired exploration rights on North Østerdalen Project. These rights are issued directly from the Norwegian government by application to the Directorate of Mining. The Company has decided not to continue exploration of the Osterdalen project and recorded an impairment of $45,733 during fiscal 2025.

RKV Project property, Norway

On February 28, 2019, the Company had entered into an option and exploration agreement to acquire a 100% interest in the Rostvangen and Vakkerlien properties in South Central Norway ("RKV Project") from Eurasian Minerals Sweden AB ("EMX"). During fiscal 2023, the Company having tested the better targets by drilling without achieving significant potentially economic results decided not to continue exploration of the RKV project and recorded an impairment of $3,215,204 during fiscal 2024.

Property Exploration Costs

During fiscal 2025, the Company incurred $9,200 drill storage costs for its RKV property.

Recovery of Expenses

During fiscal 2025, the Company received $28,600 refund for Grey River license renewal fee overpayment.

6. RELATED PARTY TRANSACTIONS

The key management personnel of the Company are the Directors, Chief Executive Officer, and the Chief Financial Officer. Included in accounts payable at February 28, 2025 is $47,862 (February 29, 2024 - $23,643) due to directors of the Company. Included in advances at February 28, 2025 is $59,005 (February 29, 2024 - $88,174) paid to a company owned by a former officer of the Company. During the year ended February 28, 2025, the related company was advanced $42,634 (February 29, 2024 - $222,670) and applied advances of $71,803 (February 29, 2024 - $143,215) as reimbursements for expenses incurred on behalf of the Company. Included in prepaid expenses at February 28, 2025, is $Nil (February 29, 2024 - $20,000) paid to a company owned by a former officer of the Company for management fees. Included in subscriptions receivable at February 28, 2025 is $340,500 (February 29, 2024 - $120,500) due from a former officer of the Company.

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

6. RELATED PARTY TRANSACTIONS (cont'd...)

Compensation of the Company's key management personnel is comprised of the following:

	February 28, 2025	February 29, 2024
Professional fees	$ -	$ 27,000
Management fees	30,000	60,000

7. INCOME TAXES

A reconciliation of current income taxes at statutory rates with the reported taxes is as follows:

	2025	2024
Loss before income taxes	$ (203,930)	$ (3,485,977)
Combined Canadian federal and provincial statutory rate	27%	27%
Expected income tax recovery at statutory tax rates	$ (55,000)	$ (941,000)
Change in statutory rates and others	-	22,000
Adjustment to prior year provision and expiry of non-capital losses	24,000	-
Share issuance cost	-	(1,000)
Change in unrecognized deductible temporary differences	31,000	920,000
Total deferred tax recovery	$ -	$ -

The significant components of the Company's deferred tax assets (liabilities) are as follows:

	2025	2024
Deferred tax assets:
Exploration and evaluation assets	$ 3,194,000	$ 3,202,000
Non-capital losses available for future periods	1,889,000	1,850,000
Equipment	10,000	10,000
Share issue costs	2,000	3,000
Allowable capital losses	820,000	820,000
Net unrecognized deferred tax assets	$ 5,915,000	$ 5,885,000

Significant components of deductible and taxable temporary differences, unused tax losses and unused tax credits that have not been included on the consolidated statements of financial position are as follows:

	2025	Expiry dates	2024
Non-capital losses	$7,008,000	2028 to 2045	$6,862,000
Allowable capital losses	3,037,000	No expiry	3,037,000
Exploration and evaluation assets	11,719,000	No expiry	11,742,000
Other items	115,000	Various	120,000

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

8. SHARE CAPITAL AND RESERVES

Authorized share capital

As at February 28, 2025, the authorized share capital of the Company is an unlimited number of common shares without par value.

Issued share capital

As at February 28, 2025, the Company had 130,347,160 (February 29, 2024 – 127,947,160) common shares issued and outstanding.

Share issuances

During the year ended February 28, 2025, the Company issued 1,400,000 common shares pursuant to the exercise of stock options at $0.20 per share for gross proceeds of $280,000 which is recorded in subscriptions receivable as at February 28, 2025. During fiscal 2025 the Company received subscription proceeds of $60,000 from prior subscriptions receivable. During the year ended February 28, 2025, the Company issued 1,000,000 shares (valued at $15,000) to ExplORE Resources Limited as part of the acquisition of the Golden Circle Project (Note 5).

During the year ended February 29, 2024, the Company issued 10,000,000 common shares at $0.05 per share for gross proceeds of $500,000 of which $98,000 was in subscriptions receivable as at February 29, 2024. The Company issued 450,000 common shares in stock options exercised at $0.05 per share for gross proceeds of $22,500 is recorded in subscriptions receivable as at February 29, 2024.

The Company has subscriptions receivable of $362,500 as at February 28, 2025 (February 29, 2024 - $142,500).

Stock options

Stock option transactions are summarized as follows:

	Stock Options
	Number	Weighted Average Exercise Price
Outstanding and exercisable, February 28, 2023	10,150,000	$ 0.16
Exercised	(450,000)	0.05
Outstanding and exercisable, February 29, 2024	9,700,000	0.17
Expired	(2,250,000)	0.05
Exercised	(1,400,000)	0.20
Outstanding and exercisable, February 28, 2025	6,050,000	$ 0.20

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

8. SHARE CAPITAL AND RESERVES (cont'd...)

Stock options (cont'd...)

The following stock options were outstanding and exercisable at February 28, 2025:

	Number of Shares	Exercise Price ($)	Expiry Date
Options	4,350,000	0.20	June 1, 2026
	1,500,000	0.20	August 30, 2026
	100,000	0.12	December 12, 2026
	100,000	0.12	March 21, 2027

9. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

The significant non-cash transactions for fiscal 2025 consisted of the Company incurring exploration and evaluation expenditures of $39,067 through accounts payable and accrued liabilities, issuing 1,400,000 common shares pursuant to the exercise stock options in consideration for subscriptions receivable of $280,000 and a reclass of $200,356 from reserves to share capital on the exercise of these options, and issuing 1,000,000 shares valued at $15,000 to acquire the Golden Circle Project.

The significant non-cash transactions for fiscal 2024 consisted of the Company incurring exploration and evaluation expenditures of $44,243 through accounts payable and accrued liabilities, issuing 450,000 shares pursuant to the exercise of stock options in consideration for subscriptions receivable of $22,500 and a reclass of $15,320 from reserves to share capital on the exercise of these options, and issuing 1,960,000 common shares in a private placement in consideration for subscriptions receivable of $98,000.

10. SEGMENTED INFORMATION

The Company operates in one reportable operating segment, being the acquisition and exploration of mineral properties in Canada. During fiscal 2025, the Company wrote-off all Norway properties. Geographic information is disclosed in Note 5.

11. FINANCIAL AND CAPITAL RISK MANAGEMENT

Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values.

The fair value of the Company's cash, receivables, and accounts payable and accrued liabilities approximate their carrying values due to their short-term nature.

The Company is exposed to varying degrees to a variety of financial instrument related risks:

Credit risk

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company's cash is held at a large Canadian financial institution in interest bearing accounts. The Company has no investment in asset backed commercial paper. Receivables consist of receivables due from the government of Canada.

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PLAYFAIR MINING LTD.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in Canadian Dollars)

FOR THE YEAR ENDED FEBRUARY 28, 2025

11. FINANCIAL AND CAPITAL RISK MANAGEMENT (cont'd...)

Liquidity risk

The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when they come due. As at February 28, 2025, the Company had a cash balance of $12,885 to settle current liabilities of $313,012. To maintain liquidity, the Company is currently investigating financing opportunities and new exploration projects. Current market conditions make the present environment for raising additional equity financing unfavourable and there can be no assurance these efforts will be successful in the future. All of the Company’s financial liabilities are subject to normal trade terms. The Company is exposed to liquidity risk.

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.

a) Interest rate risk

The Company has a limited exposure to interest rate risk.

b) Foreign currency risk

The Company does not have any balances denominated in a foreign currency and believes it has no significant foreign currency risk.

c) Price risk

The Company is exposed to price risk with respect to commodity prices. Changes in commodity prices will impact the economics of development of the Company’s mineral properties. The Company closely monitors commodity prices to determine the appropriate course of action to be taken.

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 of 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 future development of the business. The Company defines capital that it manages as shareholders’ equity.

The properties in which the Company currently has an interest are in the exploration stage; as such the Company has historically relied on the equity markets to fund its activities. There is no certainty with respect to the Company’s ability to raise capital. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

The Company currently is not subject to externally imposed capital requirements. There were no changes in the Company’s approach to capital management during the year ended February 28, 2025.

12. SUBSEQUENT EVENT

Subsequent to the year ended February 28, 2025, the Company issued 11,000,000 common shares at $0.025 per share for gross proceeds of $275,000 of which $45,000 has been received prior to February 28, 2025 and $50,000 is remaining receivable from a former officer of the Company.