SRQ Resources Inc. — Management Reports 2025

May 28, 2025

SRQ

SRQ RESOURCES INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE QUARTER ENDED MARCH 31, 2025

INDEX

SCOPE OF MD&A AND NOTICE TO INVESTORS ... 2
CORPORATION OVERVIEW ... 2
HIGHLIGHTS ... 2
FINANCING ... 3
MINERAL PROPERTY PORTFOLIO ... 3
SELECTED FINANCIAL INFORMATION ... 13
RELATED PARTIES TRANSACTIONS ... 16
COMMITMENTS ... 16
OUTSTANDING SHARE DATA ... 16
OFF-BALANCE SHEET ARRANGEMENTS ... 17
CONFLICTS OF INTEREST ... 17
MATERIAL ACCOUNTING POLICIES ... 17
ESTIMATES, JUDGMENTS AND ASSUMPTIONS ... 17
RISKS RELATED TO FINANCIAL INSTRUMENTS ... 18
RISKS AND UNCERTAINTIES ... 18
FORWARD LOOKING STATEMENTS ... 18

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

SCOPE OF MD&A AND NOTICE TO INVESTORS

This management's discussion and analysis of financial position and results of operations ("MD&A") complements the unaudited interim condensed financial statements of SRQ Resources Inc. (the "Corporation"), for the period ended March 31, 2025, which are compared to the period ended March 31, 2024. The unaudited interim condensed financial statements include SRQ Resources Inc. ("SRQ"). The unaudited interim condensed financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"). Except as otherwise disclosed, all dollar figures included therein and in the following MD&A are quoted in Canadian dollars. The Corporation has prepared this MD&A following the requirements of National Instrument 51-102, Continuous Disclosure Obligations.

The interim condensed consolidated financial statements and related notes have been prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board. They do not contain all the information required to be disclosed in annual financial statements. Certain information and notes usually provided in the annual financial statements have been omitted or condensed when not deemed essential to the understanding of the interim financial information of the Corporation. Therefore, this MD&A should be read in conjunction with the information contained in the annual audited consolidated financial statements of the Corporation and the notes thereto for the year ended December 31, 2024.

Management of the Corporation is responsible for the preparation and presentation of the unaudited interim condensed financial statements and notes thereto, MD&A and other information contained in this MD&A. Additionally, it is management's responsibility to ensure the Corporation complies with the laws and regulations applicable to its activities.

The unaudited interim condensed financial statements and the MD&A have been reviewed and approved by the audit committee on May 28, 2025, as delegated by the Board of directors.

CORPORATION OVERVIEW

SRQ Resources Inc. is a Canadian base metals corporation exploring for nickel, copper, and platinum group elements (PGEs) in the province of Québec. The Corporation was incorporated on June 2, 2021, under the Canada Business Corporations Act. The Corporation's head office is located at #132 – 1320 Graham Blvd., Mont-Royal, Quebec, Canada, H3P 3C8. The Corporation's common shares are listed on the TSX Venture Exchange (the "TSX-V") under the trading symbol "SRQ.V".

SRQ owns 1,182 exploration claims in the Canadian province of Québec, with Lac Brulé being the most advanced exploration project (Figure 1). The Lac Brulé property consists of 603 contiguous mining claims covering an area of approximately 34,795 ha, located approximately 148 km west-northwest of the town of Mont-Laurier, Québec. A near-surface, Ni-Cu project, Lac Brulé is located at a five-hour drive from Montréal. The project's prospectivity for base metals has been confirmed by geological mapping, the presence of a surface gossan, and geophysical surveys. The presence of the historic Renzy Ni-Cu mine located 50 kilometers to the south-east and at the heart of the large regional pattern further adds to the area's mineral exploration appeal. The 2023-24 drill program at the Lac Brulé property confirmed the presence of copper and nickel mineralization associated with an undeformed ultramafic intrusion sequence. Subsequent geophysical surveys identified strong targets along strike, and at depth, of the maiden discovery. The 2025 drill program will be testing a very large combined airborne HELITEM II & Gravity Gradiometer target (Target 900) located 6 km from the initial discovery and extending over more than 2 km stating a 500 m below surface with continuity at depth.

HIGHLIGHTS

• On January 27, 2025, the Corporation announced a grant to the Directors and Officers aggregate of 1,430,000 stock options, each exercisable to acquire one Common Share at an exercise price of $0.13 on or before January 24, 2035, being the date that is 10 years from their date of grant of January 24, 2025.
• On March 19, 2025, the Corporation announced a fully committed non-brokered private placement, which closed on March 24, 2025. See "Financing" section.

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

• On April 3, 2025, the Corporation announced the reception of an "Autorisation d'Exploration à Impact" ("ATI-7"), granting exploration rights across all 42 claims covering 24.8 km² at Lac Brennan project in Quebec.

FINANCING

On March 24, 2025, the Corporation announced the closing of a non-brokered private placement for the issuance of 18,103,399 shares of the Corporation, for aggregate gross proceeds of $2,371,393. The private placement comprised two tranches, as follows:

• Tranche 1 - Hard Dollar Units: 14,786,982 units at a price of $0.12 per Hard Dollar Unit, comprised of one Common Share that does not qualify as a "Flow-Through" share and one Common Share purchase warrant, entitling the holder to purchase one Common share at an exercise price of $0.18 for a period of 2 years from the date of the issuance, for gross proceeds of $1,774,438; and
• Tranche 2 - Flow-Through (FT) Shares: 3,316,417 Common Shares that qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) at a price of $0.18 per FT share for gross proceeds of $596,955.

In consideration for providing certain finders' services to the Corporation in connection with the private placement, the Corporation paid cash finders' fees in the aggregate $46,785 and issued 304,910 warrants to purchase shares exercisable at $0.18 for a period of 24 months from closing of the FT shares's offering. The finders fees were paid to certain arm's-length finders, representing up to 7% of the gross proceeds received by the Corporation from subscribers that were introduced to the Corporation by such finders.

The use of proceeds include an Ambient Noise Tomography (ANT) survey at the Target 900 sector followed by a 4,000m drilling program.

MINERAL PROPERTY PORTFOLIO

PROVINCE OF QUEBEC, CANADA PROJECTS

SRQ is focused on the discovery and development of high-grade deposits of nickel, copper, and PGEs in Quebec, Canada.

SRQ holds exploration mining properties in Quebec with its flagship project being the Lac Brulé Nickel-Copper-PGEs project located at a five-hour drive from Montreal. SRQ is committed to responsible exploration and development practices, with a focus on environmental and social sustainability.

SRQ has recently taken claims in the Labrador within Naskapi First Nation territory.

LAC BRULÉ NI-CU PROJECT

SRQ launched the Lac Brulé Ni-Cu and the Lac Brennan projects by acquiring exploration claims in the Nivernais and Esgriseilles Townships (Lac Brulé project) and claims in the Dauphine Township (Lac Brennan project) all in the Province of Quebec. The center of Lac Brulé is at UTM coordinates 314,700mE and 5,198,400mN (UTM-18, NAD 83) on topographic map NTS 31K13 and 31K14.

Dr. Audet (Ph.D. Geology) became aware of the potential of the entire area following a base metal compilation performed in late 80's while working for Falconbridge Ltd. The Lac Brulé area was never prospected prior to SRQ's involvement. There are no historical groundworks. However, regional magnetometry and gravity maps covering the areas as part of the global Quebec province coverage as well as data from stream and lake sediments sampling program covering the entire province were available on government websites. The old Renzi nickel-copper mine is the closest mining activity with historical information available. The Renzi mine is located 48 km ESE of the Lac Brulé property. The Renzy Ni-Cu mine operated from 1969 to 1972 selling Ni & Cu concentrate to Falconbridge in Sudbury, Ontario. The Corporation is targeting possible accumulations of Ni and Cu mineralization at Lac Brulé that could be of similar nature to that at the Renzy mine and at other well-known Ni-Cu deposits in Québec and Labrador (i.e.: Voysey Bay Ni-Cu-PGM deposit).

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

The Lac Brulé area is part of the First Nation Anishinaabe historical land. SRQ, through M. Jerry Peltier, former Kanesatake Chief and SRQ's Strategic Advisor for First Nations, have maintained a continuous communication with the Kitigan Zibi First Nation band about the Lac Brulé Exploration Project. Parts of SRQ's owned claims are either within the Lac Barriere, Wolf Lake and Kipawa Anishinaabe First Nation.

PROPERTY DETAILS

SRQ commissioned Xcalibur Multiphysics (MPH) Canada Inc. to perform a HELITEM2® electromagnetic survey supplemented by a high-sensitivity cesium magnetometer. One block of claims (390 claims) was surveyed between December 5 and December 14, 2021. The survey coverage consisted of 1,374 km of traverse lines flown with a spacing of 200 and 100 m and 119 km of tie lines with a 2000 m spacing.

In July and August 2022, the Corporation commissioned TMC Geophysics of Val d'Or to carry out ground Induced Polarization ("IP") and Electromagnetic ("EM") surveys at the Lac Brulé Property. The campaign took place between July 26th and August 21st, 2022 and consisted of 32.45 km of IP and 17.70 km of EM.

In July 2022, SRQ mandated Mr. Francois Goulet, P.Geo, to act as the qualified person ("QP") for the current maiden geological report. He visited the property for personal inspection from July 18 to 22, 2022.

In October 2023, Xcalibur conducted a high-sensitivity aeromagnetic and FALCON® Airborne Gravity Gradiometer (AGG) survey over the Lac Brulé area for a total of 597 line-km.

In April 2024, Xcalibur conducted an additional high-sensitivity aeromagnetic and FALCON® Airborne Gravity Gradiometer survey as a follow-up at the Lac Brulé and also covering the entire Lac Brennan property for a combined total of 977 line-km (438 line-km at Lac Brulé and 539 line-km at the Lac Brennan).

In 2023 and in 2024, SRQ mandated Professor Christian Picard and Dr. Normand Goulet, P.Geo to assist the team during geological mapping, drilling programs and detailed geological characterizations of significant geological units, including members of the Magmatic Intrusive sequence

SRQ launched the first drilling program at the Lac Brulé project on July 3, 2023, with 13 holes totalizing 3,942 m, followed in October 2023 with 5 additional holes for 1,246 m. The Corporation launched a third phase of 11 holes for 3,015m in April 2024. The Phase 3 drill campaign included ten holes at the Gossan Zone and one hole (LB-24-29) testing a very strong gravity target, called Target 900 located 6 kilometers ("km") west of the Gossan Zone (Figure 2)

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

Figure 1: Lac Brulé Ni-Cu project : exploration claims forming 1 large block and a smaller block of 42 claims called Lac Brennan south-west of the old Renzy Mine. The vertical gradient of gravity anomalies is outlined with the first derivative of the gradient magnetometer shown in background.

2023-24 LAC BRULÉ EXPLORATION WORK

On October 26 and 27, 2023, the Corporation flew a 600 line-km test airborne gravimetric survey overlaying the main area of interest at the Lac Brulé project. In April 2024, the Corporation flew a 438 line-km airborne gravity survey as a follow-up on the test-survey of October 2023 and a 539 line-km at the lac Brennan project (Figure 2).

From April 19 to May 07, 2024, the Corporation proceed with the Phase III drill program for $3,015\mathrm{m}$ including ten holes at the Gossan Zone (Figures 3 & 4) and one hole (LB-24-29; Target 900) drilled $6\mathrm{km}$ west of the Gossan Zone testing a high gravity target. Table 1 shows assay results for the drilling to date at the Gossan zone.

Hole LB-24-29 (951m) targeted the center of a $3.5\mathrm{km}\times 1.7\mathrm{km}$ strong gravity anomaly. The hole intersected $951\mathrm{m}$ of a continuous magmatic sequence composed of anorthosite/leucogabbro and pyroxenite with Po, minor CPy and Pn in the last $70\mathrm{m}$ of the hole. For technical reasons, the hole terminated in pyroxenite at a vertical depth of $750\mathrm{m}$ from surface and more than $300\mathrm{m}$ east of the Target 900 center. Despite missing the core by such a distance, the hole intersected several mineralised zones.

Ongoing surface regional geological mapping outlined a very large magmatic intrusive complex which seems to be deeply rooted (Figure 5).

Detailed petrological and mineralogical analysis shows that Lac Brulé Ni-Cu mineralisation has strong similarities to mineralisation from the former Renzy Ni-Cu mine.

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

Table 1: Drill hole intercepts defined using a cut-off-grade of 0.3% Ni (core lengths).

HOLE-ID	Combined Length m	Ni %	CU %	C0 %	S %	Fe %	MgO %
COG: 0.30% Ni
Phase 1: July 2023
LB-23-01	3.35	0.34	0.25	0.05	6.87	16.66	16.92
LB-23-02	3.10	0.36	0.52	0.05	7.94	18.45	17.59
LB-23-03	6.75	0.37	0.36	0.05	6.96	17.26	18.49
LB-23-04	10.65	0.42	0.33	0.05	8.19	18.05	15.57
LB-23-05	10.80	0.36	0.29	0.05	6.79	16.56	16.41
LB-23-06	1.85	0.49	0.33	0.13	19.35	34.32	14.29
LB-23-12	15.10	0.51	0.35	0.07	9.62	20.26	18.69
Phase 2: October 2023
LB-23-14	3.55	0.56	0.41	0.07	10.52	21.14	18.04
LB-23-15	22.50	0.44	0.34	0.06	8.19	18.44	17.50
LB-23-16	2.40	0.45	0.25	0.10	14.67	27.69	17.14
LB-23-17	5.30	0.42	0.27	0.05	8.06	18.03	16.91
LB-23-18	7.25	0.36	0.48	0.05	7.08	17.23	17.42
Phase 3: April 2024
LB-24-21	11.46	0.38	0.26	0.05	7.48	18.48	20.02
LB-24-22	2.52	0.39	0.41	0.05	8.00	18.05	17.05
LB-24-23	13.94	0.38	0.43	0.05	7.65	17.61	16.76
LB-24-24	2.13	0.39	0.28	0.05	7.38	18.02	22.46
LB-24-25	4.42	0.34	0.32	0.05	7.49	16.68	15.32
LB-24-26	10.23	0.37	0.33	0.05	7.36	17.69	17.37
LB-24-27	2.98	0.38	0.28	0.05	7.70	16.96	17.21
LB-24-28	5.00	0.54	0.54	0.07	10.67	21.67	15.87

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

Figure 2: Compilation map of 2021 Magnetic response together with the combined 2023-24 airborne Gravimetry surveys. The large North Zone target has not been drilled tested yet. A new target was generated from the April 2024's gravimetry survey (Target 900). This new target corresponds to a very large and strong gravity response of presumably dense geological material at depth (starting at $600m$ from surface). Several additional targets are outlined by the 2021 EM anomaly picking (small grey square).

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

Figure 3: 3D mineralized undeformed ultramafic layer at the Gossan zone.

Figure 4: SW-NE longitudinal cross-section showing the UM intrusive and the Ni-Cu mineralized horizon.

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

Target 900 and regional potential at the Lac Brulé property.
Figure 5: Surface geophysical and geological compilation in the Gossan and Target 900 area showing EM and Gravimetry responses of the Intrusive Complex at the Lac Brulé. The Target 900 is located on the northern flank and at the hinge of a large fold. In the top right corner of the image, there is a N-S vertical cross section showing an EM response starting at $500\mathrm{m}$ from surface coinciding with the large gravity response starting also at $500\mathrm{m}$ and extending further at depth. The 2025 drilling program is designed at testing the combined targets.

GEOLOGICAL HIGHLIGHTS FOR THE LAC BRULE'S INTRUSIVE COMPLEX:

The regional geology can be summarized by the following sequence of facies.

1- Gneiss and Quartzite
2- Garnet rich Amphibolite
3- Magmatic Intrusive Sequence (1.5 Ga age)
4- Peridotite-Pyroxenite (Late Grenville, approx. 1.0 Ga age)
5- Mineralised Pyroxenite - Gossan Zone

At the gossan outcrop the magmatic mafic horizon is remarkable and easily identifiable by the wide gossan presents on the surface (more than $400\mathrm{m}$ long and $60\mathrm{m}$ wide). The gossan consists mainly of massive pyroxenite with large poecilitic crystals of pyroxene (and / or amphibole) with inclusions of serpentine olivine. It also has puddles of interstitial sulfides (up to $5\%$ ). The latter are mainly formed of chalcopyrite, pyrrhotite, pentlandite and rare pyrite.

The country rocks are affected by high grade metamorphism, varying from amphibolite facies to granulite facies. The regional structure has significant deformations, but it is notable that the regional foliation is characterized by a very low dip of 15 to $20^{\circ}$ .

PETROLOGICAL AND MINERALOGICAL STUDIES IDENTIFY PRESENCE OF MINERALIZED PYROXENITE AT LAC BRULE

Up to 75 samples were carefully collected during the 2023-24 drilling programs at the Lac Brulé UM complex for detailed petrological and mineralogical studies using an optical microscope and a scanning electronic microscope ("SEM"). These studies were carried out at the ISTerre of the University of Grenoble Alpes by Professor Christian Picard,

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

university professor (retired) of earth sciences (with special authorization from Ordre des Géologues du Québec (OGQ)).

The discovered UM complex is composed of pyroxenite and peridotite, both intruding the highly metamorphic host rock sequence. The pyroxenite includes locally porphyritic assemblages of diopside, magnesio-hornblende and olivine (Fo80-84) with a lesser proportion of enstatite, intercalated with specific mineralized horizons containing up to 30% sulfides mostly as net texture within the silicate gangue.

Within the intrusive meta-peridotite, low nickel contents were measured in the olivine crystals (800 to 1,600 parts per million ("ppm")) versus an expected nickel range in olivine of 3,000 to 4,000 ppm. This could reflect a strong transfer of nickel from the olivine to the sulfide liquids produced during immiscibility mechanisms.

The summer 2024 geological mapping further outlined the magnitude of late intrusive complexes. Figures 5, 7 and 8 are showing the extend of the meta-foliated and strongly deformed diorite-leucogabbro units (often called with field name of anorthosite). The foliated diorite-leucogabbro appear to be instrumental as a host for a series of younger mafic and ultramafic intrusive carrying Cu-Ni mineralisation.

In contrast to the visible deformation of the folded and foliated diorite sequence, the younger mafic to ultramafic magmatic units present, overall, a very low level of deformation and or metamorphism. It can be observed on surface outcrops and on boreholes, including LB-24-29, that the peridotite and pyroxenite sequences show unmetamorphosed coarse-grained textures.

LAC BRULÉ NI-CU MINERALISATION: STRONG SIMILARITIES WITH THE FORMER RENZY NI-CU MINE

SRQ has compared the geological sequence and the associated mineralisation at both the Lac Brulé and the historic Renzy Ni-Cu mine. Detailed petrological and mineralogical investigations by Professor Christian Picard have confirmed the presence, at both sites, of several pyroxenite and peridotite sequences impregnated with disseminated to semi-massive mineralisation of pyrrhotite, chalcopyrite and pentlandite, all obviously intrusive in an Archean or Proterozoic sequence of paragneiss and garnet-rich amphibolite.

As at the Lac Brulé site, the Renzy sequence is made up of alternating bands of werhlites and olivine pyroxenites which present olivine paragenesis type Fo84, enstatite, diopside in a poecilitic matrix of magnesio-hornblende with traces of phlogopite. Werhlites and pyroxenites also present a magmatic bedding with subvertical free contacts, oriented NE-SW, which contrasts with the slightly sloping foliation of the paragneiss. All of these data unambiguously suggest that the Renzy complex is intrusive in the paragneiss.

At Renzy, the pyroxenites and werhlites in its mineralisation present scattered puddles (2-3%) arranged interstitially between the silicates, and consisting in order of abundance of pyrrhotite, chalcopyrite and cobalt-bearing pentlandite (Figure 6), again in all respects comparable to Lac Brulé.

A few mineralised blocks of olivine pyroxenite and werhlite, remnants of past work, were collected at the Renzy site. These blocks have the same paragenesis at: olivine type Fo84, enstatite, diopside, poeciltic magnesio-hornblende and phlogopite. Depending on the sample, they contain 15% to 70% semi-massive to massive sulphides with a net texture (net-textured type). They comprise the same proportions of pyrrhotite, chalcopyrite, and pentlandite with traces of pyrite and ilmenite. They also contain some platinum group minerals (merenskyite, hessite, etc.). It should be noted that as at Lac Brulé, the pentlandite is cobalt-rich with Co contents of 2% to 4%.

To date, such semi-massive and massive sulphides have not been found in abundance at the Lac Brulé site. However, the many petrographic and structural similarities between the two sites, coupled with the results from very preliminary exploration on Lac Brulé, demonstrate that they are very similar magmatic systems, increasing the probability of a significant discovery.

More detailed works are ongoing.

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

Figure 6 Massive Sulphide Sample from Renzy Containing Pyroxene and Olivine Inclusions The sulphides are composed of pyrrhotite (Po), chalcopyrite (Cp,) and cobalt-rich pentlandite $(Ni = 35.5$ to $36.4\mathrm{wt}\%$ . $\mathrm{Co} = 2.5$ to $4\mathrm{wt}\%$ ). Magnetite and ilmenite crystals complete the parageneses.

OTHER EXPLORATION AREAS

SRQ also owns an additional 579 claims on several groups of claims in good standing (Table 2 & Figures 7 & 8).

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

Table 2: SRQ's projects and claims in Quebec Province

Projet	Titulaire	Pourcentage	nb claims	Superficie Ha	SNRC
Pontiac Est
Lac Brulé	SRQ Resources	100	603	34,795	31K14
Lac Brennan	SRQ Resources	100	42	2,480	31K10
Pontiac Ouest
Lac Cabazie	SRQ Resources	100	25	1,482	31L08
Duncan	SRQ Resources	100	18	1,064	31K12
Lac Dumoine	SRQ Resources	100	328	20,552	31L16
Lac Jim	SRQ Resources	100	21	1,178	31F16
Northfield	SRQ Resources	100	31	1,843	31J04
Picanoc	SRQ Resources	100	11	2,501	31F16
Fosse du Labrador
Redcliff	SRQ Resources	100	84	3,948	24C15
Nord Chibougamou
Lac Mont Mord	SRQ Resources	100	19	1 025	32O02
			1,182	67,516

Figure 7: SRQ group of exploration claims in the province of Quebec.

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

Figure 8: 2023-24 Airborne Gravity surveys performed by Xcalibur at the Lac Brulé and the Brennan properties showing excellent target at both locations.

The exploration programs and technical disclosure for the Corporation are designed, reviewed and approved by Marc-Antoine Audet, P. Geo, PhD, President and Chief Executive Officer of the Corporation who is a 'qualified person' ("QP"), as defined by National Instrument 43-101, Standards for Disclosure for Mineral Projects ("NI 43-101").

SELECTED FINANCIAL INFORMATION

Going concern assumption and liquidity risk

Based on the information available to date, the Corporation has not yet determined whether its mineral properties contain economically recoverable reserves.

The accompanying financial statements have been prepared using IFRS applicable to a going concern, which presumes the Corporation will continue its operations for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the ordinary course of business for the foreseeable future. The use of these principles may not be appropriate. The Corporation is in its early stages, and as is common with similar corporations, it raises financing for its exploration and evaluation activities. As at March 31, 2025, the Corporation has an equity of $2,290,514 and a working capital of$ 2,240,786, including cash and cash equivalents of $2,567,702. To date, the Corporation has financed its cash requirements primarily equity financing. The Corporation's ability to continue as a going concern is subject to its ability to raise additional financing. The Corporation's discretionary activities do have some scope for flexibility in terms of the amount and timing of expenditures, and to a certain extent, expenditures may be adjusted accordingly.

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

While management has been successful in securing financing since its inception, there can be no assurance it will be able to do so in the future, that such sources of funding will be available to the Corporation or that they will be available on terms acceptable to the Corporation. These circumstances indicate the existence of material uncertainties that may cast significant doubt upon the Corporation's ability to continue as a going concern.

If management is unable to obtain new funding, the Corporation may have to rationalize or reprioritize its activities and ultimately be unable to continue its operations, and amounts realized for assets might be less than amounts reflected in the financial statements.

FINANCIAL POSITION ANALYSIS

	March 31, 2025	December 31, 2024
	$	$
Total assets	2,732,448	567,095
Total liabilities	441,934	116,167
Total equity	2,290,514	450,928
Working capital*	2,240,786	393,922

*Working capital is a measure of current assets less current liabilities.

ASSETS

Total assets at March 31, 2025 were $2,732,448 compared to $567,095 at December 31, 2024, an increase of $2,165,353 mainly due to an increase in cash and cash equivalents of $2,159,797 following the March 2025 private placement, in prepaids expenses of $58,855 and in sales taxes receivable of $19,714, offset by a decrease in tax credits receivables of $65,735 and in property and equipment of $7,278.

LIABILITIES

Total liabilities at March 31, 2025 were $441,934 compared to $116,167 at December 31, 2024, an increase of $325,767. The increase is due to an increase in accounts payable and accrued liabilities of $199,032, in flow-through liability of $136,119, offset by a decrease in lease liabilities of $9,384.

EQUITY

At March 31, 2025, the Corporation had an equity balance of $2,290,514 compared to $450,928 at December 31, 2024, an increase of $1,839,586, mainly due to the issuance of common shares and warrants following the March 2025 private placement and the increase in stock-based compensation of $87,610, offset by the increase in accumulated net deficit of $350,809.

OPERATING RESULTS ANALYSIS

	Three-month period ended
	2025	March 31, 2024
	$	$
Revenues	-	-
Net loss	350,809	408,635
Net loss per share	0.01	0.01

THREE-MONTH PERIOD ENDED MARCH 31, 2025 COMPARED TO THE THREE-MONTH PERIOD ENDED MARCH 31, 2024

For the three-month period ended March 31, 2025, the Corporation recorded a net loss of $350,809 compared to $408,635 for the same period in 2024, a decrease of $57,826.

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

Exploration and evaluation expenses decreased by $71,033 from the same period in 2024, mainly due to a decrease in exploration expenses attributed to the Lac Brulé property by $67,979 related to timing of exploration campaign.

General and administrative expenses increased by $7,228 from the same period in 2024, mainly due to an increase in professional and consulting fees of $40,697, offset by a decrease in salaries and benefits of $19,622 and in non-cash share-based payments of $13,227.

Other income variation is comprised of flow through liability amortization of $8,401, offset by a decrease in interest revenue by $13,998.

CASH FLOWS ANALYSIS

	Three-month period ended
	2025	March 31, 2024
	$	$
Cash required by operating activities	(104,596)	(194,635)
Cash required by investing activities	(4,349)	(7,429)
Cash generated (required) by financing activities	2,268,742	(19,492)

THREE-MONTH PERIOD ENDED MARCH 31, 2025 COMPARED TO THE THREE-MONTH PERIOD ENDED MARCH 31, 2024

Operating Activities

For the three-month period ended March 31, 2025, operating activities required cash flows of $104,596 compared to $194,635 for the same period in 2024, a decrease of cash consumption of $90,039. The variation is due to the change in non-cash working capital items which went from requiring $130,111 in Q1 2024 to requiring $186,198 in Q1 2025 as exploration tax credit were received during the period, and a decrease in net loss after adjustments of items not affecting cash, which went from requiring cash flows of $324,746 in Q1 2024 to requiring $290,794 in Q1 2025.

Investing Activities

For the three-month period ended March 31, 2025 and 2024, investing activities are related to small field equipment purchases.

Financing Activities

For the three-month period ended March 31, 2025, issuance of common shares in warrants from the March 2025 private placement generated $2,371,393, offset by share issuance costs of $92,905 and lease liabilities requiring net cash flows of $9,746.

QUARTERLY RESULTS TRENDS

The operating results are presented in the following table:

	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023
	$	$	$	$	$	$	$	$
Revenue	-	-	-	-	-	-	-	-
Net loss	350,809	260,562	334,586	785,400	408,635	495,672	810,864	196,773
Net loss per share	0.01	0.01	0.01	0.03	0.01	0.02	0.04	0.01

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

RELATED PARTIES TRANSACTIONS

During the three-month periods ended March 31, 2025 and 2024, and the year ended December 31, 2024, the following related party transactions occurred in the normal course of operations:

Lease payments, exploration expenses and general and administrative expenses of $15,560 for the three-month period ended March 31, 2025 ($14,204 for the three-month period ended March 31, 2024) to Sama Resources Inc, a corporation of which the Corporation's President and Chief Executive Officer is also the President and Chief Executive Officer. As at March 31, 2025, $nil was due to that corporation ($nil – December 31, 2024)

REMUNERATION OF KEY MANAGEMENT PERSONNEL

Key management personnel are the members of the Board of Directors, and executive officers of the Corporation. During the three-month periods ended March 31, 2025 and 2024, the remuneration awarded to key management personnel is as follows:

	Three-month period ended
	March 31,
	2025	2024
	$	$
Salaries and benefits	-	18,000
Consulting and professional fees	68,500	50,500
Share-based payments	74,130	89,995
	142,630	158,495

TERMINATION AND CHANGE OF CONTROL PROVISIONS

Certain agreements between the executive team and the Corporation contain termination without cause and change of control provisions. Assuming that these agreements would be terminated without cause during the year ending December 31, 2025, the total amounts payable in respect of severance would amount to $440,000. If a change of control would occur during the year ending December 31, 2025, the total amounts payable in respect of severance, if elected by the executive members, would amount to $440,000.

COMMITMENTS

The Corporation has no outstanding commitments.

OUTSTANDING SHARE DATA

	Number of Shares Outstanding (Diluted)
SRQ outstanding shares as of May 28, 2025	46,095,650
Shares reserved for issuance pursuant to stock options outstanding	3,375,000
Shares reserved for issuance pursuant to warrants outstanding	15,289,012
	64,759,662

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

As at the date of this MD&A, the Corporation had outstanding stock options enabling holders to acquire shares of the Corporation as follows:

	Number outstanding	Number exercisable	Exercise price $
September 18, 2033	1,945,000	1,945,000	0.27
January 24, 2025	1,430,000	357,500	0.13
	3,375,000	2,302,500	0.21

As at the date of this MD&A, the Corporation had outstanding warrants enabling holders to acquire common shares of the Corporation as follows:

	Number	Exercise price $
December 22, 2025	197,120	0.16
March 24, 2027	15,091,892	0.18
	15,289,012	0.18

OFF-BALANCE SHEET ARRANGEMENTS

The Corporation has no off-balance sheet arrangements.

CONFLICTS OF INTEREST

The Corporation's directors and officers may serve as directors and/or officers, or may be associated with, other reporting companies, or have significant shareholdings in other public companies. To the extent that such other companies may participate in business or asset acquisitions, dispositions or ventures in which the Corporation may participate, the directors and officers of the Corporation may have a conflict of interest in negotiating and concluding terms respecting the transaction. If a conflict of interest arises, the Corporation will follow the provisions of the Canada Business Corporations Act (the Corporations Act) dealing with conflict of interest. These provisions state that where a director is in such a conflict, that director must, at a meeting of the Corporation's directors, disclose his or her interest and refrain from voting on the matter unless otherwise permitted by the Corporations Act. In accordance with the federal laws of Canada, the directors and officers of the Corporation are required to act honestly, in good faith, and in the best interests of the Corporation.

MATERIAL ACCOUNTING POLICIES

The preparation of financial statements in conformity with IFRS requires management to apply accounting policies and make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. There is full disclosure of the Corporation's material accounting policies in Note 2 and Note 3 of the audited financial statements for the year ended December 31, 2024.

ESTIMATES, JUDGMENTS AND ASSUMPTIONS

The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Significant changes in the underlying assumptions could result in significant changes to these estimates. Consequently, management reviews these estimates on a regular basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Information about these significant judgments, assumptions and estimates that have the most significant effect on the recognition and measurement of assets, liabilities, income and expenses are disclosed in Note 3 of the audited financial statements for the year ended December 31, 2024.

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SRQ RESOURCES INC.

Management's discussion and analysis for the quarter ended March 31, 2025

RISKS RELATED TO FINANCIAL INSTRUMENTS

Readers are invited to refer to Note 13 of the audited financial statements for the year ended December 31, 2024, for a full description of these risks.

RISKS AND UNCERTAINTIES

Readers are invited to refer to Management Discussion and Analysis for the year ended December 31, 2024, for a full description of these risks.

FORWARD LOOKING STATEMENTS

Certain statements made in this MD&A are forward-looking statements or information. The Corporation is hereby providing cautionary statements identifying important factors that could cause the Corporation's actual results to differ materially from those projected in the forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projection", "could", "vision", "goals", "objective" and "outlook") are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. In making these forward-looking statements, the Corporation has assumed that the current market will continue and grow and that the risks listed below will not adversely impact the business of the Corporation. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes may not occur or may be delayed. The risks, uncertainties and other factors, many of which are beyond the control of the Corporation that could influence actual results are summarized below under the heading "Risks and Uncertainties".

Further, unless otherwise noted, any forward-looking statement speaks only as of the date of this MD&A, and, except as required by applicable law, the Corporation does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors and to assess in advance the impact of each such factor on the business of the Corporation, or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement.

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