Starmet Ventures — Audit Report / Information 2025

Apr 13, 2026

Starmet Ventures Inc.

Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Canadian Dollars)

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DeVISSERGRAY LLP
CHARTERED PROFESSIONAL ACCOUNTANTS
401-905 West Pender St
Vancouver BC V6C 1L6
www.devissergray.com
f 604.687.5447
f 604.687.6737

Independent Auditor’s Report

To the Shareholders of Starmet Ventures Inc.

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Starmet Ventures Inc. (the “Company”), which comprise the statements of financial position as at December 31, 2025 and 2024, and the statements of loss and comprehensive loss, changes in shareholders’ equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policy information.

In our opinion, the accompanying financial statements present fairly, in all material respects the financial position of the Company as at December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with IFRS Accounting Standards (IFRS).

Basis for Opinion

We conducted our audits 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 Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audits of the financial statements in Canada, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 in the financial statements, which indicates that the Company has no source of revenue as at December 31, 2025 and is dependent on its ability to generate future cash flows or obtain additional financing to maintain its operations. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, 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 financial statements of the current period. These matters were addressed in the context of our audit of the 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 that there is the following key audit matter to communicate in our auditor’s report

Key audit matter:	How our audit addressed the key audit matter:
Assessment of impairment indicators of Exploration and evaluation assets.	Our approach to addressing the matter included the following procedures, among others:
Refer to note 3 – Significant accounting judgments, estimates and assumptions, note 4(a) – Material accounting policy information – Exploration and evaluation assets and note 6 Exploration and evaluation assets	Evaluated the reasonableness of management’s assessment of impairment indicators, which included the following:
Management assesses at each reporting period whether there is an indication that the carrying value of exploration and evaluation assets may not be recoverable. Management applies significant judgment in assessing whether indicators of impairment exist that necessitate	• Assessed the Company’s market capitalization in comparison to the Company’s net assets, which may be an indication of impairment.
• Assessed the completeness of the factors that could be considered indicators of impairment, including consideration of evidence obtained in other areas of

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impairment testing. Internal and external factors, such as (i) a significant decline in the market value of the Company's share price; (ii) changes in the Company's assessment of whether commercially viable quantities of mineral resources exist within the properties; and (iii) changes in metal prices, capital and operating costs, are evaluated by management in determining whether there are any indicators of impairment.

We considered this a key audit matter due to (i) the significance of the exploration and evaluation asset balance and (ii) the significant audit effort and subjectivity in applying audit procedures to assess the factors evaluated by management in its assessment of impairment indicators, which required significant management judgment.

the audit.

• Confirmed that the Company's right to explore the properties had not expired.
• Obtained management's written representations regarding the Company's future plans for the exploration and evaluation assets.
• Assessed the reasonability of the Company's financial statement disclosure regarding their exploration and evaluation assets.

Other Information

Management is responsible for the other information. The other information comprises the information included in "Management's Discussion and Analysis", but does not include the financial statements and our auditor's report thereon.

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

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

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

In preparing the 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 Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

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 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.

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• 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 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 financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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 financial statements of the current period 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 G. Cameron Dong.

De Visser Gay LLP

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, BC, Canada

April 13, 2026

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Starmet Ventures Inc.
Statements of Financial Position
(Expressed in Canadian Dollars)
As at December 31,

	Note	2025	2024
ASSETS
Current
Cash		$ 22,138	$ 10,369
Receivables		12,921	2,843
Prepaids		13	13
		35,072	13,225
Non-current
Receivable	5	420,000	-
Exploration and evaluation assets	6	293,717	1,204,731
Total Assets		$ 748,789	$ 1,217,956
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities		$ 166,074	$ 14,919
Short term loans	9	160,050	142,050
Due to related parties	8	231,000	279,000
		557,124	435,969
Shareholders’ equity
Share capital	7	2,721,923	1,874,482
Share purchase warrants reserve	7	210,984	-
Reserves	7	123,737	123,737
Deficit		(2,864,979)	(1,216,232)
		191,665	781,987
Total Liabilities and Shareholders’ Equity		$ 748,789	$ 1,217,956

Nature and continuance of operations (Note 1)

Approved on behalf of the Board of Directors:

“Ohad David”
Director

“Nir Eliyahu”
Director

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

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Starmet Ventures Inc.

Statements of Loss and Comprehensive Loss

(Expressed in Canadian Dollars)

	For the Year Ended December 31, 2025	For the Year Ended December 31, 2024
EXPENSES
Consulting fees (Note 8)	$ 610,000	$ 125,000
Legal	6,189	4,650
Accounting and Audit (Note 8)	40,300	33,500
Office and administration	790	211
Share-based payments (Note 7)	-	10,617
Interest expense	18,000	9,650
Filing fees and other	18,468	17,699
	(693,747)	(201,327)
Impairment of exploration and evaluation assets (Note 6)	(955,000)	-
Net loss and comprehensive loss for the year	$ (1,648,747)	$ (201,327)
Loss per share – basic and diluted	$ (0.04)	$ (0.01)
Weighted average number of shares outstanding	37,984,925	22,536,774

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

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Starmet Ventures Inc.

Statements of Changes in Shareholders' Equity

(Expressed in Canadian Dollars)

	Number of Shares	Share capital	Share purchase warrants reserve	Reserves	Deficit	Shareholders' Equity
Balance, December 31, 2023	22,536,774	$ 1,874,482	$ -	$ 113,120	$ (1,014,905)	$ 972,697
Share-based payments	-	-	-	10,617	-	10,617
Net loss for the year	-	-	-	-	(201,327)	(201,327)
Balance, December 31, 2024	22,536,774	1,874,482	-	123,737	(1,216,232)	781,987
Shares and warrants issued for cash	22,200,000	899,016	210,984	-	-	1,110,000
Shares issued as finders fee	2,775,000	138,750	-	-	-	138,750
Share issuance costs	-	(230,325)	-	-	-	(230,325)
Shares issued for services	200,000	40,000	-	-	-	40,000
Net loss for the year	-	-	-	-	(1,648,747)	(1,648,747)
Balance, December 31, 2025	47,711,774	$ 2,721,923	$ 210,984	$ 123,737	$ (2,864,979)	$ 191,665

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

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Starmet Ventures Inc.

Statements of Cash flows

(Expressed in Canadian Dollars)

	For the year ended December 31, 2025	For the year ended December 31, 2024
OPERATING ACTIVITIES
Net loss for the year	$ (1,648,747)	$ (201,327)
Items not involving cash:
Share-based payments	-	10,617
Consulting fees paid by issuance of common shares	40,000	-
Impairment of exploration and evaluation assets	955,000	-
Interest accrued on short term loan	18,000	9,650
Changes in non-cash working capital items:
Receivables	(10,078)	2,138
Accounts payable and accrued liabilities	151,155	(66)
Due to related parties	(48,000)	120,000
Cash used in operating activities	(542,670)	(58,988)
INVESTING ACTIVITIES
Solterra Project investment	(420,000)	-
Exploration and evaluation assets	(43,986)	(40,353)
Cash used in investing activities	(463,986)	(40,353)
FINANCING ACTIVITIES
Shares and warrants issued for cash, net	1,018,425	-
Short term loans received	-	70,000
Cash provided by financing activities	1,018,425	70,000
Change in cash	11,769	(29,341)
Cash, beginning of the year	10,369	39,710
Cash, end of the year	$ 22,138	$ 10,369

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

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Starmet Ventures Inc.

Notes to the Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Canadian Dollars)

1. NATURE AND CONTINUANCE OF OPERATIONS

Starmet Ventures Inc. (the "Company") was incorporated under the Business Corporations Act (British Columbia) on March 19, 2019.

The Company is in the business of the exploration and development of natural resource properties in North America.

These 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. As at December 31, 2025, the Company has not generated any revenues from operations, had working capital deficit of $522,052 (2024 - $422,744) and a deficit of $2,864,979 (2024 - $1,216,232).

The common shares of the Company commenced trading on October 18, 2022 on the Canadian Securities Exchange under the trading symbol STAR.

The continued operations of the Company are dependent on its ability to generate future cash flows or obtain additional financing. Management believes that sufficient working capital will be obtained from external financing to meet the Company's liabilities and commitments as they become due, 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. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

Should the Company be unable to realize on its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts recorded on the statement of financial position. The financial statements do not include adjustments to amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue operations.

2. BASIS OF PREPARATION

These financial statements have been prepared using accounting policies consistent with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

These financial statements have been prepared on a historical cost basis, modified where applicable. In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

These financial statements were authorized for issuance on April 13, 2026 by the directors of the Company.

These financial statements are presented in Canadian Dollars, which is also the Company's functional currency, unless otherwise indicated.

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Starmet Ventures Inc.
Notes to the Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in Canadian Dollars)

3. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of these financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.

a) Significant judgments

The preparation of the financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in applying the Company's accounting policies include the assessment of the Company's ability to continue as a going concern and the classification/allocation of expenditures as exploration and evaluation expenditures or operating expenses.

b) Significant estimates and assumptions

The Company makes estimates and assumptions about the future that affect the reported amounts of assets and liabilities. Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.

The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income/loss in the period of the change, if the change affects that period only, or in the period of the change and future periods, if the change affects both.

Estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods include the recoverability of the carrying value of exploration and evaluation assets and provisions for restoration, environmental obligations and share-based payments.

4. MATERIAL ACCOUNTING POLICY INFORMATION

a) Exploration and Evaluation Assets

The Company's exploration and evaluation assets consist of mineral rights acquired and exploration and evaluation expenditures capitalized in respect of projects that are at the exploration and evaluation stage.

No amortization charge is recognized in respect of exploration and evaluation assets. These assets are transferred to mine development assets in property, plant and equipment upon the commencement of mine development.

Exploration and evaluation expenditures in the relevant area of interest are comprised of costs which are directly attributable to:

• Acquisition;
• Assays, Staking, and Mapping;
• Consulting & Professional;
• Drilling;
• Field Work;
• Geological & Geophysical; and
• Travel & Accommodation.

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Starmet Ventures Inc.
Notes to the Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in Canadian Dollars)

4. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

a) Exploration and Evaluation Assets (continued)

Exploration and evaluation expenditures related to an area of interest where the Company has tenure are capitalized as intangible assets and are initially recorded at cost less impairment.

Exploration and evaluation expenditures also includes the costs incurred in acquiring mineral rights, the entry premiums paid to gain access to areas of interest and amounts payable to third parties to acquire interests in existing projects. Capitalized costs, including general and administrative costs, are only allocated to the extent that those costs can be related directly to operational activities in the relevant area of interest.

Where the Company has entered into option agreements to acquire interests in mineral properties that require periodic share issuances, amounts un-issued are not recorded as liabilities since they are issuable entirely at the Company's option. Option payments are recorded as mineral property costs when the payments are made and share issuances are recorded as mineral property costs using the fair market value of the Company's common shares at the date of the issuance.

All capitalized exploration and evaluation expenditures are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount. The following circumstances indicate that an entity should test exploration and evaluation assets for impairment:

• The period for which the entity has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed;
• Substantive expenditures on further exploration and evaluation of mineral resources in the specific area is neither budgeted nor planned;
• Exploration and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the Company has decided to discontinue such activities in the specific area; and
• Sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.

In circumstances where a property is abandoned, the cumulative capitalized costs relating to the property are written off in the period.

b) Financial Instruments

The Company recognizes financial assets and liabilities on the statement of financial position when it becomes a party to the contractual provisions of the instrument.

At initial recognition, financial assets are measured at fair value and classified as subsequently measured at amortized cost, fair value through other comprehensive income ("FVTOCI") or fair value through profit or loss ("FVTPL"). At initial recognition, financial liabilities are measured at fair value and classified as, subject to certain exceptions, subsequently measured at amortized cost. For financial assets and financial liabilities not at FVTPL, fair value is adjusted for transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

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Starmet Ventures Inc.
Notes to the Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in Canadian Dollars)

4. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

b) Financial Instruments (continued)

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVTPL:

• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL:

• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

An equity investment that is held for trading is measured at FVTPL. For other equity investments that are not held for trading, the Company may irrevocably elect to designate them as FVOCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has elected to measure them at FVTPL.

The Company classifies its financial instruments as follows:

Financial Instrument	IFRS 9 Classification
Cash	Amortized cost
Accounts payable and accrued liabilities	Amortized cost
Short term loan	Amortized cost
Due to related parties	Amortized cost

Subsequent measurement

The following accounting policies apply to the subsequent measurement of financial instruments:

Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

Financial assets at amortized cost

These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

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Starmet Ventures Inc.
Notes to the Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in Canadian Dollars)

4. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

b) Financial Instruments (continued)

Equity investments at FVOCI

These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.

Debt investments at FVOCI

These assets are subsequently measured at fair value. Interest income is calculated using the effective interest rate method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Impairment of financial instruments

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, the Company applies the expected credit loss impairment model.

c) Provisions

Provisions are recorded when a present legal or constructive obligation exists as a result of past events where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation estimated at the end of each reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount receivable can be measured reliably.

d) Income Taxes

Income tax on the profit or loss for the periods 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 year end, adjusted for amendments to tax payable with regards to previous years.

Deferred tax is provided using the asset and 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. Deferred tax is not recognized on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable income no loss. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill.

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 financial position reporting date applicable to the period of expected realization or settlement. 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.

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Starmet Ventures Inc.
Notes to the Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in Canadian Dollars)

4. MATERIAL ACCOUNTING POLICY INFORMATION (continued)

d) Income Taxes (continued)

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.

e) Share-based compensation

The Company accounts for share-based compensation using the fair value-based method with respect to all share-based payments to directors, employees and non-employees. Under the fair value-based method, share-based compensation is measured at fair value and recognized in operations over the vesting period. Fair value is determined using the Black-Scholes option pricing model. Any consideration paid on exercise of stock options together with the related fair value previously recognized in contributed surplus is credited to share capital.

f) Share Capital

Common shares issued for non-monetary consideration are recorded at their fair market value based upon the date of share issuance. Costs incurred to issue common shares are deducted from share capital.

Unit placements

The Company has adopted a residual method with respect to the measurement of common shares and warrants issued as private placement units. Warrants attached to units are valued based on the fair value of warrants using the Black Scholes valuation model and the share price at the time of financing, and the difference between the proceeds raised and the value assigned to the warrants is the residual fair value of the shares.

Other Elements of Equity

Warrants

Warrants that have been issued in combination with common shares are accounted for under IAS 32, Financial instruments: Presentation. Equity classification applies to instruments where a fixed amount of cash (or liability) denominated in the issuer's functional currency is exchanged for a fixed amount of shares.

In calculating the value of warrants, the Company used the Black Scholes option model which incorporates the following inputs: the Company's stock price, expected life of the warrant, volatility of the Company's stock price, dividend yield and the risk-free interest rate.

Warrants include fair value allocated to warrants issued. When warrants are exercised, the related cost and fair value are transferred to share capital. Upon expiry, the fair value initially recorded under warrant reserve is transferred to deficit.

g) Loss Per Share

The Company presents basic and diluted loss per share data for its common shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted loss per share does not adjust the loss attributable to common shareholders or the weighted average number of common shares outstanding when the effect is anti-dilutive.

h) Related Party Transactions

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

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Starmet Ventures Inc.

Notes to the Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Canadian Dollars)

5. OTHER RECIEVABLE

On May 22, 2025, the Company entered into an agreement with Solterra Renewable Energy Ltd.("Solterra") whereby $420,000 was advanced for the development by Solterra on a Battery Energy Storage System ("Battery project") in Germany. The advance is non-interest bearing with no fixed terms of repayment. As a result of the project development, the Company can receive up to $480,000 upon eventual sale of the Battery project.

6. EXPLORATION AND EVALUATION ASSETS

	JPL	Ear Falls	Total
Balance – January 1, 2024	$ 209,378	$ 955,000	$ 1,164,378
Acquisition cost
Deferred cost during the year	24,385	-	24,385
Exploration cost:
Claim fees and Notice of intend to hold	15,968	-	15,968
Balance – December 31, 2024	$ 249,731	$ 955,000	$ 1,204,731
Impairment		(955,000)	(955,000)
Acquisition costs
Deferred costs during the year	27,963	-	27,963
Exploration costs:
Claim fees	16,023	-	16,023
Balance – December 31, 2025	$ 293,717	$ -	$ 293,717

Title to exploration and evaluation assets 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 characteristics of many mining properties. The Company has investigated title to all of its exploration and evaluation assets and, to the best of its knowledge, title to all of its properties is in good standing.

JPL Project, Nevada, USA

On August 11, 2020, the Company entered into an exploration lease and option agreement to acquire a 100% interest in the JPL Project (the "Property") consisting of certain unpatented mining claims in Nevada, USA. Following the exercise of the option, the Property will remain subject to a 3% production royalty. The Company shall be entitled to purchase ownership of the Property at any time through a one-time cash payment of $1,000,000 USD.

The Company's obligations under the agreement include cash payments as follows:

(i) $10,000 USD on or before the closing date (paid at the Canadian equivalent of $13,367);
(ii) $10,000 USD on or before August 11, 2021 (paid at the Canadian equivalent of $12,575);
(iii) $12,500 USD on or before August 11, 2022 (paid at the Canadian equivalent of $16,113);
(iv) $15,000 USD on or before August 11, 2023; (paid the Canadian equivalent of $20,330)
(v) $17,500 USD on or before August 11, 2024; (paid the Canadian equivalent of $24,385) and
(vi) $20,000 USD on or before August 11, 2025 (paid the Canadian equivalent of $27,963) and each succeeding anniversary of the effective date.

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Starmet Ventures Inc.
Notes to the Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in Canadian Dollars)

6. EXPLORATION AND EVALUATION ASSETS (continued)

Ear Falls, Ontario, Canada

On September 26, 2023, the Company acquired 302 mineral claims located near Ear Falls in the province of Ontario. The Claims cover approximately 6,040 hectares.

The Acquisition was in exchange for a total of 6,100,000 common shares of the Company at a fair valued price of $0.15 and $40,000 in cash.

A 2% net smelter return royalty was granted by the Company to one of the vendors, half of which the Company may repurchase for an amount of $1 million in cash (representing 1.0% of the net smelter return and resulting in a remaining Royalty at a rate of 1.0% of the net smelter return).

During August 2025, the 302 mineral claims located near Ear Falls in the province of Ontario were forfeited as the Company did not perform the required annual units of assessment work for those claims. The Company recorded an impairment in the amount of $955,000 to fully impair the value of the claims.

7. SHARE CAPITAL

The Company has authorized an unlimited number of common shares and preferred shares. No preferred shares have been issued.

On May 20, 2025, the Company completed a non-brokered private placement financing wherein it raised $1,110,000 through the issuance of 22,200,000 units at a price of $0.05 per unit. Each Unit consists of one common share in the capital of the Company and one common share purchase warrant of the Company. Each Warrant will entitle the holder to purchase one common share in the capital of the Company for a period of thirty-six (36) months from the date of issue at an exercise price of $0.05 per Warrant Share. The fair value of the warrants were determined first with the residual value being assigned to the common shares.

The Company recorded a share purchase warrants reserve of $210,984 based on the Black-Scholes option pricing model and the following input assumptions:

Weighted average fair value of warrants issued on May 20, 2025	CAD $0.0095
Risk-free interest rate	2.66%
Expected life (in years)	3
Expected volatility	140.94%
Dividend rate	0%

In connection with the Private Placement, the Company paid 2 finders aggregate cash fees of $91,575 and issued to the Finders, in aggregate, 2,775,000 common shares.

As at December 31, 2025, the following share purchase warrants were outstanding:

Number of share purchase warrants outstanding	Exercise price $	Expiry date	Weighted average life remaining
22,200,000	0.05	May 20, 2028	2.39
22,200,000			2.39

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Starmet Ventures Inc.

Notes to the Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Canadian Dollars)

7. SHARE CAPITAL (continued)

On September 26, 2025, the Company issued 200,000 common shares at $0.20 per share to its CEO in exchange for consulting services.

The Company did not issue common shares during the year ended December 31, 2024.

Stock Options

During the year ended December 31, 2020, the Company adopted a stock option plan providing for the grant to the Company's officers, directors, employees and permitted consultants and management company employees of options to purchase common shares of the Company. Under the Stock Option Plan, the Company may grant options to purchase up to 10% of the issued and outstanding shares of the Company.

The following table summarizes the continuity of stock options:

	Number of stock options	Weighted average exercise price $
Balance, December 31, 2024	1,850,000	0.081
Expired	(1,000,000)	0.065
Balance, December 31, 2025	850,000	0.10

As at December 31, 2025, the following stock options were outstanding:

Number of stock options outstanding	Exercise price $	Expiry date	Weighted average life remaining
500,000	0.10	October 18, 2027	1.80
350,000	0.10	September 27, 2028	2.74
850,000			2.19

The share-based payments expense recognized during the year ended December 31, 2025 was Nil (2024 - $10,617) calculated using the Black-Scholes Option Pricing Model on the grant date.

16

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Starmet Ventures Inc.
Notes to the Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in Canadian Dollars)

8. RELATED PARTY TRANSACTIONS

Related party transactions were in the normal course of operations and is the amount established and agreed to by the related parties. Key management personnel are the persons responsible for planning, directing and controlling the activities of the Company, and include both executive and non-executive directors, and entities controlled by such persons. The Company considers all directors and officers of the Company to be key management personnel. Amounts owing to related parties are non-interest bearing, unsecured and due on demand.

During the year ended December 31, 2025, the Company incurred $150,000 (2024 - $60,000) in consulting fees to a company controlled by a former director. As at December 31, 2025, the Company owed $112,500 (December 31, 2024 - $135,000) to this company.

During the year ended December 31, 2025, the Company incurred $150,000 (2024 - $60,000) in consulting fees to a company controlled by a former director. As at December 31, 2025, the Company owed $112,500 (December 31, 2024 - $135,000) to this company.

During the year ended December 31, 2025, the Company incurred $25,500 (2024 - $19,000) in accounting fees to a company controlled by an officer of the Company. As at December 31, 2025, the Company owed $6,000 (December 31, 2024 - $9,000) to this company.

On September 26, 2025, the Company issued 200,000 common shares at $0.20 per share to its CEO in exchange for consulting services.

9. SHORT TERM LOANS

During the year ended December 31, 2024, the Company secured short-term loans with a total principal amount of $70,000 from three corporations, of which $50,000 were from two corporations owned by former directors. The loans bear interest at 12% per annum and matures at the earliest of (a) June 30, 2026 and (b) Once the Company has more than USD $1,000,000 in its bank account.

During the year ended December 31, 2023, the Company secured short-term loans with a total principal amount of $60,000 from three corporations, of which $40,000 were from two corporations owned by former directors. The loans bear interest at 12% per annum and matures at the earliest of (a) June 30, 2026 and (b) Once the Company has more than USD $1,000,000 in its bank account.

10. FINANCIAL INSTRUMENTS AND 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 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.

The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors approves and monitors the risk management processes, inclusive of counterparty limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows:

(a) Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company's primary exposure to credit risk is on its cash held in bank accounts. The Company has deposited the cash with its bank from which management believes the risk of loss is remote.

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Starmet Ventures Inc.
Notes to the Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed in Canadian Dollars)

10. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)

(b) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. Accounts payable and accrued liabilities, short term loans and due to related parties are due within the current operating period.

(c) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(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 exposed to interest rate risk, from time to time, on its cash balances. Surplus cash, if any, is placed on call with financial institutions.

(e) Commodity Price Risk

The ability of the Company to finance the exploration and development of its properties and the future profitability of the Company is directly related to the market price of the primary minerals identified in its mineral properties.

(e) Commodity Price Risk

Mineral prices fluctuate on a daily basis and are affected by a number of factors beyond the Company’s control. A sustained, significant decline in the prices of the primary minerals or in the share prices of junior mineral exploration companies in general, could have a negative impact on the Company’s ability to raise additional capital. Sensitivity to commodity price risk is remote since the Company has not established any reserves or production.

(f) Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the foreign currency exchange rates. The Company’s functional currency is the Canadian dollar. The Company is exposed to foreign exchange risk because the Company’s financial instruments are denominated in both Canadian dollars and US dollars, and exploration related to the JPL Project occurs within the United States.

11. CAPITAL DISCLOSURE AND MANAGEMENT

The Company defines its capital as all components of shareholders’ equity. The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern.

In order to maintain its capital structure, the Company is dependent on equity funding and when necessary, raises capital through the issuance of equity instruments, primarily comprised of common shares. The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will make changes to its capital structure as deemed appropriate under the specific circumstances.

The Company is not subject to any externally imposed capital requirements or debt covenants, and does not presently utilize any quantitative measures to monitor its capital. There were no changes to the Company’s approach to managing capital during the year.

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Starmet Ventures Inc.

Notes to the Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Canadian Dollars)

12. SEGMENTED INFORMATION

Industry information

The Company operates in one reportable operating segment, being the acquisition and exploration of exploration and evaluation assets.

Geographic information

The Company operates in Canada, Germany and the USA. The Company’s exploration and evaluation assets are located in the USA and Canada.

13. INCOME TAXES

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

	Year ended December 31, 2025	Year ended December 31, 2024
	$	$
Loss before income taxes	(1,648,747)	(201,327)
Expected income tax (recovery) at statutory rates	(445,162)	(54,358)
Permanent difference	-	(1,238)
Share issue costs	(24,725)	-
Change in deferred tax assets	469,887	55,596
Deferred income tax recovery	-	-

As at December 31, 2025 and 2024, the amounts of deductible temporary differences for which no deferred tax assets were recognized, were as follows:

	2025	2024
	$	$
Losses carried forward	492,351	298,806
Share issue costs	21,069	2,577
Exploration and evaluation assets	257,850	-
Deferred tax asset not recognized	(771,270)	(301,383)
	-	-

There are no deferred tax assets or liabilities presented in the statement of financial position.

The Company has non-capital losses of approximately $1,823,000 (2024 - $1,106,000), which may be carried forward and applied against taxable income in future years. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements and have been offset by a valuation allowance.

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Starmet Ventures Inc.

Notes to the Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Canadian Dollars)

13. INCOME TAXES (continued)

The Company’s non-capital loss carry-forwards expire as follows:

	Non-capital Losses
	$
2039	102,000
2040	172,000
2041	24,000
2042	415,000
2043	198,000
2044	195,000
2045	717,000
	1,823,000