Silver Grail Resources Ltd. — Interim / Quarterly Report 2025

Aug 30, 2025

SILVER GRAIL RESOURCES LTD.

Condensed Financial Statements
Three Months Ended June 30, 2025
(Expressed in Canadian dollars)
(unaudited)

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NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

Under National Instrument 51-102, "Continuous Disclosure Obligations", Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The Company's external auditors, Charlton & Company, Chartered Professional Accountants, have not performed a review of these condensed financial statements.

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SILVER GRAIL RESOURCES LTD.
Condensed Statements of Financial Position
(Expressed in Canadian dollars)

	June 30, 2025 $	March 31, 2025 $
	(unaudited)
Assets
Current assets
Cash	40,225	41,866
Marketable securities (Note 3)	25,433	27,760
Amounts receivable	12,967	12,813
Prepaid expenses	3,381	3,381
Total current assets	82,006	82,820
Non-current assets
Reclamation deposits	2,500	2,500
Exploration and evaluation assets (Notes 4 and 5)	820,138	801,506
Total non-current assets	822,638	804,006
Total assets	904,644	886,826
Liabilities
Current liabilities
Accounts payable and accrued liabilities	18,414	20,020
Due to related parties (Note 5)	30,156	9,594
Total liabilities	48,570	29,614
Shareholders' equity
Share capital	7,850,176	7,850,176
Share-based payment reserve	949,350	949,350
Deficit	(7,943,452)	(7,942,314)
Total shareholders' equity	856,074	857,212
Total liabilities and shareholders' equity	904,644	886,826

Nature of operations and going concern (Note 1)

Approved and authorized for issuance on behalf of the Board on August 29, 2025:

/s/ "Dino Cremonese"
/s/ "Robert Smiley"

Dino Cremonese, Director
Robert Smiley, Director

(The accompany notes are an integral part of these financial statements)

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(The accompany notes are an integral part of these financial statements)

SILVER GRAIL RESOURCES LTD.

Condensed Statements of Loss and Comprehensive Loss

(Expressed in Canadian dollars)

(unaudited)

	Three months ended June 30, 2025 $	Three months ended June 30, 2024 $
Expenses
Office and miscellaneous	35	147
Transfer agent and regulatory fees	–	1,015
Total expenses	35	1,162
Loss before other income (expense)	(35)	(1,162)
Other income (expense)
Impairment of exploration and evaluation assets (Note 4)	(1,776)	(749)
Unrealized gain (loss) on marketable securities (Note 3)	673	(1,945)
Total other income (expense)	(1,103)	(2,694)
Net loss and comprehensive loss	(1,138)	(3,856)
Loss per share, basic and diluted	–	–
Weighted average number of common shares outstanding	36,594,622	36,594,622

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SILVER GRAIL RESOURCES LTD.

Condensed Statements of Changes in Shareholders' Equity

(Expressed in Canadian dollars)

(unaudited)

	Share capital		Share-based payment reserve $	Deficit $	Total shareholders' equity $
	Number of shares	Amount $
Balance, March 31, 2025	36,594,622	7,850,176	949,350	(7,942,314)	857,212
Net loss for the period	–	–	–	(1,138)	(1,138)
Balance, June 30, 2025	33,594,622	7,850,176	949,350	(7,943,452)	856,074
Balance, March 31, 2024	33,594,622	7,850,176	949,350	(7,900,456)	899,070
Net loss for the period	–	–	–	(3,856)	(3,856)
Balance, June 30, 2024	33,594,622	7,850,176	949,350	(7,904,312)	895,214

(The accompany notes are an integral part of these financial statements)

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SILVER GRAIL RESOURCES LTD.

Condensed Statements of Cash Flows

(Expressed in Canadian dollars)

(unaudited)

	Three months ended June 30, 2025 $	Three months ended June 30, 2024 $
Operating activities
Net loss	(1,138)	(3,856)
Items not involving cash:
Impairment of exploration and evaluation assets	1,776	749
Unrealized loss (gain) on marketable securities	(673)	1,945
Changes in non-cash operating working capital items:
Amounts receivable	(154)	(114)
Accounts payable and accrued liabilities	(1,606)	105
Due to related parties	154	297
Net cash used in operating activities	(1,641)	(874)
Change in cash	(1,641)	(874)
Cash, beginning of period	41,866	184,777
Cash, end of period	40,225	183,903
Non-cash investing and financing activities:
Exploration and evaluation expenditures incurred included in due to related parties	20,408	1,182

(The accompany notes are an integral part of these financial statements)

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SILVER GRAIL RESOURCES LTD.
Notes to the Condensed Financial Statements
Three Months Ended June 30, 2025
(Expressed in Canadian dollars)
(unaudited)

1. Nature of Operations and Going Concern

Silver Grail Resources Ltd. (the "Company") was incorporated on April 18, 1980 under the Business Corporations Act of British Columbia. The Company is an exploration stage company and is in the business of acquiring, exploring, and dealing in mineral properties in the province of British Columbia, Canada. There has been no determination whether properties held contain economically recoverable ore reserves. The Company jointly conducts business and exploration activities with another publicly listed company, Teuton Resources Corp. ("Teuton"). Teuton shares office premises and consultants and has common officers and directors. The Company's head office and principal place of business is located at 2130 Crescent Road, Victoria, BC, V8S 2H3.

In the ordinary course of business, the Company sells or options property interests to third parties, accepting as consideration cash and/or securities of the acquiring party. The Company attempts to realize upon the value of securities as opportunities present themselves. The recoverability of valuations assigned to mineral properties is dependent upon the discovery of economically recoverable reserves, confirmation of the Company's interest in the properties, the ability to obtain necessary financing to complete development, and future profitable production or proceeds from disposition.

These condensed financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. During the period ended June 30, 2025, the Company has no source of revenue and generated negative cash flows from operating activities. As at June 30, 2025 the Company has an accumulated deficit of $7,943,452. These factors indicate the existence of a material uncertainty that may raise significant doubt about the Company's ability to continue as a going concern. The continued operations of the Company are dependent on its ability to generate future cash flows or obtain additional financing. Management is of the opinion that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due over the next 12 months, although there is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These financial statements do not reflect any adjustments that may be necessary if the Company is unable to continue as a going concern, in which case such adjustments could be material.

1. Material Accounting Policy Information

(a) Basis of Preparation and Statement of Compliance

These condensed financial statements have been prepared in accordance with International Financial Reporting Standards applicable to interim financial information, as outlined in International Accounting Standards ("IAS") 34, "Interim Financial Reporting" and using the accounting policies consistent with those in the audited financial statements as at and for the year ended March 31, 2025.

These interim condensed financial statements do not include all disclosures normally provided in annual financial statements and should be read in conjunction with the annual financial statements as at and for the year ended March 31, 2025. Interim results are not necessarily indicative of the results expected for the fiscal year.

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SILVER GRAIL RESOURCES LTD.
Notes to the Condensed Financial Statements
Three Months Ended June 30, 2025
(Expressed in Canadian dollars)
(unaudited)

1. Material Accounting Policy Information (continued)

(b) Accounting Standards Issued but Not Yet Effective

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended June 30, 2025, and have not been early adopted in preparing these financial statements.

IFRS 18 Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18 – Presentation and Disclosure in Financial Statements which will replace IAS 1, Presentation of Financial Statements. The key new concepts introduced in IFRS 18 relate to the structure of the statement of earnings (loss), required disclosures in the financial statements for certain earnings or loss performance measures that are reported outside an entity's financial statements and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general. IFRS 18 will apply for reporting periods beginning on or after January 1, 2027, and also applies to comparative information. The Company is still in the process of assessing the impact of this standard on its financial statements.

Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have a significant impact on the Company's financial statements.

1. Marketable Securities

	March 31, 2025 Fair value $	Additions $	Unrealized gain $	June 30, 2025 Fair value $
Marketable securities	24,760	–	673	25,433

The Company holds equity securities in publicly traded companies. During the three months ended June 30, 2025, the Company recorded an unrealized gain of $673 (2024 – unrealized loss of $1,945) on marketable securities.

1. Exploration and Evaluation Assets

Exploration and evaluation assets consist of:

	Three months ended June 30, 2025 $	Year ended March 31, 2025 $
Balance, beginning of year	801,506	699,360
Assays	–	8,915
Engineering	–	9,714
Geological and geophysical	16,431	43,804
Helicopters	–	37,688
Supplies and miscellaneous	1,332	1,839
Staking and filing fees	–	572
Travel and accommodations	2,645	6,470
	20,408	109,002
Impairment	(1,776)	(6,856)
Balance, end of year	820,138	801,506

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SILVER GRAIL RESOURCES LTD.
Notes to the Condensed Financial Statements
Three Months Ended June 30, 2025
(Expressed in Canadian dollars)
(unaudited)

1. Exploration and Evaluation Assets (continued)

(a) Skeena Mining Division, British Columbia

The Company jointly owns or originally jointly owned the following properties in the Skeena Mining Division with Teuton.

(i) Clone Property

On November 28, 2005, the Company and Teuton entered into an option agreement with Makena Resources Inc. ("Makena") whereby Makena had the right to earn a 50% interest in Teuton and the Company's jointly owned Clone Property, then comprised of 9 claims. An additional 10 claims were added to the property by staking in 2006.

Under the terms of the option agreement, Makena earned a 50% interest in the properties by paying a total of $120,000 cash consideration and incurring exploration expenditures on the Clone property aggregating $1,800,000.

On September 27, 2017 (as amended on October 3, 2018), the Company and Teuton entered into an option agreement with Sky Gold Corp. (formerly Sunvest Minerals Corporation) ("Sky"), whereby Sky had the right to earn the Company and Teuton's 50% beneficial interest in the Clone Property. To earn this interest, Sky was required to issue a total of 5,000,000 of its shares, pay a total of $200,000, and incur exploration expenditures on the property aggregating $1,950,000.

Cash consideration to be paid equally to the Company and Teuton:
- $25,000 to be paid on execution of the agreement (received);
- a further $75,000 ($50,000 in cash and issuance of 500,000 shares in lieu of the remaining balance) to be paid on or before September 27, 2018 (received); and
- a further $100,000 to be paid on or before September 27, 2019 (not incurred, see below);

Shares in the common stock of Sky to be issued equally to the Company and Teuton:
- 1,500,000 shares to be issued within five business days of September 27, 2017 (received);
- a further 1,500,000 shares to be issued on or before September 27, 2018 (received); and
- a further 2,000,000 shares to be issued on or before September 27, 2019 (not incurred, see below).

Exploration expenditures to be incurred by Sky:
- $350,000 on or before September 27, 2018 (incurred);
- $600,000 on or before September 30, 2019 (not incurred, see below); and
- $1,000,000 on or before September 30, 2020 (not incurred, see below).

As of November 6, 2019, Sky elected not to pursue the option agreement to earn the 50% interest. On July 1, 2023, the Company elected to acquire an additional 25% of the Clone property from Teuton for $100,000. As at June 30, 2024, the Company owns 50% of the Clone property with the remaining 50% owned by Teuton.

(ii) Konkin Silver Property

On April 20, 2004, the Company and Teuton acquired a 100% interest in two claims representing eight units situated within the boundaries of the Konkin Silver property to earn its 50% interest, the Company issued 50,000 common shares with a fair value of $13,750 and paid $10,000 to the vendor. The vendor retains a 2% net smelter royalty ("NSR"), one-half of which can be purchased for $1,000,000 until 18 months following the commencement of commercial production.

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SILVER GRAIL RESOURCES LTD.
Notes to the Condensed Financial Statements
Three Months Ended June 30, 2025
(Expressed in Canadian dollars)
(unaudited)

1. Exploration and Evaluation Assets (continued)

(a) Skeena Mining Division, British Columbia (continued)

(iii) Bay Silver Claims

The Company owns a 50% interest in the Bay Silver property located in the Skeena Mining Division. Teuton owns the remaining 50% interest.

On August 16, 2018, the Company and Teuton entered into an agreement to option out their Bay Silver Property to AUX Resources Corporation (formerly Auramex Resources Corp). ("Auramex"), whereby Auramex had the right to earn an undivided 100% ownership in the property. To earn this interest, Auramex issued 100,000 of its shares and paid a total of $120,000 as follows:

Cash consideration to be paid equally to Company and Teuton:
- $10,000 to be paid on execution of the agreement (received);
- a further $15,000 to be paid on or before July 28, 2019 (received);
- a further $20,000 to be paid on or before July 28, 2020 (received);
- a further $25,000 to be paid on or before July 28, 2021 (received); and
- a further $50,000 to be paid on or before July 28, 2022 (received).

Common shares of Auramex to be issued equally to the Company and Teuton:
- 20,000 shares to be issued within three business days of regulatory approval for this agreement (received);
- a further 20,000 shares to be issued on or before July 28, 2019 (received);
- a further 20,000 shares to be issued on or before July 28, 2020 (received);
- a further 20,000 shares to be issued on or before July 28, 2021 (received); and
- a further 20,000 shares to be issued on or before July 28, 2022 (received).

During the year ended March 31, 2021, Auramex exercised the option.

Upon the exercise of the option, the Company and Teuton retained a 2% NSR with an advance royalty payment of $50,000 plus an additional increment payable according to inflation between 2018 and 2025 as measured by the Canadian Consumer Price Index ("CPI") first due from Auramex on June 28, 2025. The advance royalty will thereafter be payable yearly on July 28, as adjusted by the CPI. Auramex will have the right to purchase one-half of the Company's and Teuton's NSR at any time up to including ninety days after the commencement of commercial production on the property by paying $1,000,000.

(iv) Silver Crown West Claims

On July 14, 2015, and as amended on April 21, 2016, Teuton entered into an option agreement with Pretium Resources Inc. ("Pretium") whereby Pretium had the right to earn a 100% interest in Teuton's King Tut and Tuck properties, and Teuton's and the Company's jointly owned Silver Crown West property located in the Skeena Mining Division. The King Tut and Tuck properties consist of 17 claims and the Silver Crown West property consists of one claim. To earn the 100% interest, Pretium paid a total of $1,800,000 to Teuton over four years of which 3% was received by the Company.

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SILVER GRAIL RESOURCES LTD.
Notes to the Condensed Financial Statements
Three Months Ended June 30, 2025
(Expressed in Canadian dollars)
(unaudited)

1. Exploration and Evaluation Assets (continued)

(a) Skeena Mining Division, British Columbia (continued)

(iv) Silver Crown West Claims (continued)

Teuton retains an NSR of 2% on the property.

Concurrently, the Company and Teuton entered into a letter agreement with regards to the option agreement between Pretium and Teuton. As the Silver Crown West property is jointly owned by the Company and Teuton, as consideration, $50,000 of the total option proceeds were applied against any outstanding debt owed from the Company to Teuton (the "Debt"). The Company retains one-half of any NSR payable by Pretium to Teuton in regards to mineral production from the Silver Crown West property.

(v) Silver Crown Property

On March 15, 2019, the Company and Teuton entered into an agreement to option out their Silver Crown Property to Auramex, whereby Auramex had the right to earn an undivided 100% ownership in the property. To earn this interest, Auramex issued a total of 100,000 common shares and paid a total of $120,000 which was issued and paid equally to the Company and Teuton. During the year ended March 31, 2021, Auramex exercised the option and earned the 100% interest.

Upon the exercise of the option, the Company and Teuton will retain a 2% NSR with an advance royalty payment of $50,000 plus an additional increment payable according to inflation between 2019 and 2026 as measured by the CPI first due from Auramex on February 28, 2026. The advance royalty will thereafter be payable yearly on February 28, as adjusted by the CPI. Auramex will have the right to purchase one-half of the Company's and Teuton's NSR at any time up to including ninety days after the commencement of commercial production on the property by paying $1,000,000.

(vi) Midas Property

On September 28, 2005, the Company participated in a multi-party agreement (the "Sabina Agreement") whereby the Midas property was optioned to Sabina Gold & Silver Corp. (formerly Sabina Resources Limited) ("Sabina"). The Midas property consists of 4 claims and a 50% interest in the property was earned pursuant to the multi-party agreement by Sabina.

On July 16, 2014, Teuton purchased Sabina's 50% interest in the Del Norte-Midas property. The Company now owns a 25% interest in the Midas property with Teuton owning the other 75%.

(vii) Tonga-Fiji Property

The Company and Teuton jointly own the Tonga-Fiji property situated 24 kilometres north of Alice Arm, British Columbia.

(viii) Mountain Boy Claims, Skeena Mining Division, British Columbia

The Company originally owned a 100% interest in the Mountain Boy Claims, Skeena Mining Division, British Columbia consisting of seven claims comprising 41 units. The property was optioned to Mountain Boy Minerals Ltd. ("Mountain Boy") on terms whereby it could earn a 50% interest in the property. Subsequently, Mountain Boy purchased the Company's remaining 50% interest in the property. The Company retains a 2% NSR which may be purchased for $1,000,000 until 18 months following the commencement of commercial production.

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SILVER GRAIL RESOURCES LTD.
Notes to the Condensed Financial Statements
Three Months Ended June 30, 2025
(Expressed in Canadian dollars)
(unaudited)

1. Exploration and Evaluation Assets (continued)

(b) Roman Property, New Westminster Mining Division, British Columbia
The Company owns a 50% interest in eight claims located in the New Westminster Mining Division. The remaining 50% interest is owned by Teuton.

(c) Various other properties
The Company also has joint ownership with Teuton on various other properties.

1. Related Party Transactions

(a) As at June 30, 2025, the amount of $16,778 (March 31, 2025 - $347) was owed to Teuton which is non-interest bearing, secured by certain mineral properties owned jointly with the Company, and due on demand. During the three months ended June 30, 2025, the Company incurred exploration and evaluation asset expenditures of $16,431 (2024 - $1,182) to Teuton.

(b) As at June 30, 2025, the amount of $13,378 (March 31, 2025 - $9,247) was owed to the President of the Company, which is unsecured, non-interest bearing, and due on demand. During the three months ended June 30, 2025, the Company incurred exploration and evaluation asset expenditures of $3,977 (2024 - $nil) to the President of the Company.

1. Stock Options

Effective June 10, 2022, the Company adopted a new fixed stock option plan to replace its old one which follows the TSX Venture Exchange ("TSX-V") policy under which it is authorized to grant options to officers, directors, and employees to acquire up to 3,309,462 stock options, which represents 10% of the total shares outstanding as of March 31, 2022. The stock option plan limits the number of incentive stock options which may be granted to any one individual to not more than 5% of the total issued shares of the Company in any 12-month period.

The number of incentive stock options granted to any one consultant or a person employed to provide investor relations activities in any 12-month period must not exceed 2% of the total issued shares of the Company. Under the plan, the exercise price of each stock option shall be fixed by the Board of Directors, but shall be not less than the minimum price permitted by the TSX-V. The stock options can be granted for a maximum term of 10 years and vest as determined by the Board of Directors.

The following table summarizes the continuity of the Company's stock options:

	Number of options	Weighted average exercise price $
Outstanding, March 31, 2025 and June 30, 2025	877,000	0.15

Additional information regarding stock options outstanding as at June 30, 2025 is as follows:

Range of exercise prices $	Outstanding and exercisable
	Number of options	Weighted average remaining contractual life (years)	Weighted average exercise price $
0.15	877,000	1.0	0.15

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SILVER GRAIL RESOURCES LTD.
Notes to the Condensed Financial Statements
Three Months Ended June 30, 2025
(Expressed in Canadian dollars)
(unaudited)

1. Share Purchase Warrants

The following table summarizes the continuity of share purchase warrants:

		Number of warrants	Weighted average exercise price $
Balance, March 31, 2025 and June 30, 2025		3,000,000	0.15

As at June 30, 2025, the following share purchase warrants were outstanding:

Number of warrants outstanding	Exercise price $	Expiry date
3,000,000	0.15	November 13, 2025

1. Financial Instruments and Risk Management

(a) Fair Values

Financial instruments that are measured subsequent to initial recognition at fair value are grouped in Levels 1 to 3 based on the degree to which the fair value is observable.

Assets and liabilities measured at fair value on a recurring basis are presented on the Company's statement of financial position as at June 30, 2025 as follows:

	Fair Value Measurements Using
	Quoted prices in active markets for identical instruments (Level 1) $	Significant other observable inputs (Level 2) $	Significant unobservable inputs (Level 3) $	Balance, June 30, 2025 $
Marketable securities	25,433	–	–	25,433

The fair values of other financial instruments, which include cash, accounts payable and accrued liabilities, and amounts due to related parties, approximate their carrying values due to the nature and relatively short-term maturity of these instruments.

(b) Credit Risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and marketable securities. The Company limits its exposure to credit loss by placing its cash and marketable securities with high credit quality financial institutions. The carrying amount of these financial assets represents the maximum credit exposure.

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SILVER GRAIL RESOURCES LTD.
Notes to the Condensed Financial Statements
Three Months Ended June 30, 2025
(Expressed in Canadian dollars)
(unaudited)

1. Financial Instruments and Risk Management (continued)

(c) Foreign Exchange Rate Risk

Foreign exchange risk is the risk that the Company's financial instruments will fluctuate in value as a result of movements in foreign exchange rates. Foreign exchange risk arises from purchase transactions. The Company is not exposed to significant currency risk.

(d) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as it does not have any liabilities with variable rates.

(e) 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 currently settles its financial obligations using cash. The ability to do this relies on the Company raising equity financing in a timely manner and by maintaining sufficient cash in excess of anticipated needs.

All of the Company's financial liabilities have maturities of one year or less. The carrying values of the Company's accounts payables and accrued liabilities and due to related parties on the statement of financial position equal their contractual cash flows.

(f) Price Risk

The Company is exposed to price risk with respect to commodity prices. The Company's ability to raise capital to fund exploration and development activities is subject to risks associated with fluctuations in the market price of commodities.

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