Storm Exploration — Interim / Quarterly Report 2025

Aug 30, 2025

Storm Exploration Inc.

Condensed Interim Consolidated Financial Statements

Three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

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Notice of No Auditor Review of Interim Financial Statements

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

The accompanying condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed an audit or review of these condensed interim consolidated financial statements in accordance with standards established by the Chartered Professional Accountants of Canada.

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

Storm Exploration Inc.

Condensed Interim Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)

As at	June 30, 2025	March 31, 2025
ASSETS
Current Assets
Cash	$ 36,291	$ 91,151
Sales taxes recoverable	9,201	2,221
Prepaid expenses	-	1,085
Total current assets	45,492	94,457
Total assets	$ 45,492	$ 94,457
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities (notes 6)	$ 980,275	$ 1,225,228
Flow-through premium liability (note 4)	-	9,760
Total current liabilities	980,275	1,234,988
EQUITY (DEFICIENCY)
Share capital (note 5)	19,126,230	18,187,218
Contributed surplus	2,610,077	2,610,077
Deficit	(22,671,090)	(21,937,826)
Total equity (deficiency)	(934,783)	(1,140,531)
Total liabilities and equity (deficiency)	$ 45,492	$ 94,457

Nature of the company and going concern (note 1)

On behalf of the Board of Directors:

"Bruce Counts"

Director

"Joanne Price"

Director

5

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Storm Exploration Inc.

Condensed Interim Consolidated Statements of Comprehensive Loss

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

	2025	2024
Expenses
Care and maintenance	$ 292	$ 8,289
Exploration and evaluation (note 3)	654,913	42,766
Management and consulting fees (note 6)	30,000	71,250
Marketing and corporate development	4,000	77,318
Office and general	5,062	10,671
Professional fees	31,536	28,514
Regulatory and shareholder services	10,603	6,347
Travel	-	1,071
Loss before other items	(1,349,940)	(246,226)
Other items
Foreign exchange loss (gain)	(120)	2,187
Interest expense	6,740	5,963
Premium on flow-through shares (note 4)	(9,760)	-
Net loss and comprehensive loss	$ (733,266)	$ (254,376)
Loss per share - basic and diluted	$ (0.04)	$ (0.02)
Weighted average number of common shares outstanding	19,321,680	12,626,785

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

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Storm Exploration Inc.

Condensed Interim Consolidated Statements of Changes in Equity

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

	Share Capital		Shares to be issued	Contributed Surplus	Deficit	Total Equity (Deficiency)
	Number of Common Shares	Amount
Balance, March 31, 2024	11,458,200	$ 17,218,865	$ -	$ 2,457,940	$(19,291,496)	$ 167,690
Shares issued for private placement	1,552,500	310,500	(9,000)	-	-	301,500
Share issuance costs	-	(23,276)	-	10,776	-	(12,500)
Shares issued for option payment	14,881	2,381	-	-	-	2,381
Comprehensive loss	-	-	-	-	(254,376)	(254,376)
Balance, June 30, 2024	13,025,581	$ 17,508,470	$ -	$ 2,468,716	$(20,780,822)	$ (803,636)
Shares issued for private placement	2,462,500	484,500	-	18,000	-	502,500
Shares issued for option payment	1,185,216	237,043	-	-	-	237,043
Flow through share premium liability	-	(10,000)	-	-	-	(10,000)
Share issuance costs	-	(32,795)	-	11,633	-	(21,162)
Share based compensation	-	-	-	111,728	-	111,728
Comprehensive loss	-	-	-	-	(1,157,004)	(1,157,004)
Balance, March 31, 2025	16,673,297	$18,187,218	$ -	$ 2,610,077	$(21,937,826)	$ (1,140,531)
Shares issued for option payment(notes 3 and 5)	-	562,318	-	-	-	562,318
Shares issued for debt settlement (note 5)	-	351,987	-	-	-	351,987
Shares issued for First Nations (note 3)	-	33,000	-	-	-	33,000
Share issuance costs	-	(8,293)	-	-	-	(8,293)
Comprehensive loss	-	-	-	-	(733,264)	(733,264)
Balance, June 30, 2025	20,666,250	$ 19,126,230	$ -	$ 2,610,077	$(22,671,090)	$ (934,783)

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

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Storm Exploration Inc.

Condensed Interim Consolidated Statements of Cash Flows

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

	2025	2024
Cash flow used in operating activities
Net loss for the year	$ (733,266)	$ (254,376)
Items not affecting cash:
Share-based payments (note5)	-	2,381
Shares issued for option payment (note 3 and 5)	562,318	-
Shares issued for First Nations agreement (note 3)	33,000	-
Premium on flow-through shares (note 4)	(9,760)	-
	(147,708)	(251,995)
Non-cash working capital items (note 7)	101,141	36,837
	(46,567)	(288,832)
Cash flow from financing activities
Proceeds from issuance of shares and units (note 5)	-	301,500
Share issuance costs (note 5)	(8,293)	(12,500)
	(8,293)	(289,000)
Change in cash	(54,860)	168
Cash, beginning of the year	91,151	28,158
Cash, end of the year	$ 36,291	$ 28,326

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

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

1. Nature of the Company and Going Concern

Storm Exploration Inc. (the "Company") was incorporated on February 25, 1986 in Alberta, Canada. In April 2014, it was continued from the jurisdiction of Alberta to British Columbia, Canada. On October 8, 2022, the Company changed its name to Storm Exploration Inc. from Lithoquest Resources Inc.

The Company is engaged in the acquisition and exploration of mineral properties. The Company's head office is at 1480 - 885 W. Georgia Street, Vancouvers, BC V6C 3E8.

The Company has not generated significant revenues or cash flows from operations and has not yet determined whether its mineral properties contain ore reserves that are economically recoverable. As at June 30, 2025, the Company had a working capital deficit of $934,783. The Company has incurred negative cash flows from operations, recorded a loss of $733,266 for the three months ended June 30, 2025, and has an accumulated deficit of $22,671,090 as at June 30, 2025.

These unaudited condensed interim consolidated 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.

2. Basis of Presentation

These condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34 "Interim Financial Reporting". They do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended March 31, 2025, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

The accounting policies applied in preparation of these condensed interim consolidated financial statements are consistent with those applied and disclosed in the Company's consolidated financial statements for the year ended March 31, 2025, unless otherwise stated.

These financial statements were authorized for issue by the Board of Directors of the Company on August 29, 2025.

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

3. Exploration and Evaluation Expenses

a) The Miminiska-Fort Hope Greenstone Belt Projects

The following is a summary of accumulated exploration and evaluation costs that have been expensed:

Balance, March 31, 2025	5,868,926
Expenditures	592,318
Balance, June 30, 2025	$ 6,461,244

The Miminiska-Fort Hope Greenstone Belt Projects are three district scale gold properties, Miminiska, Keezhik and Attwood, which cover more than 41,000 ha in northwestern Ontario. The Company is acquiring the Miminiska and Keezhik properties under the terms of an option agreement with Landore Resources Canada Inc. dated May 5, 2021 with subsequent amendments.

On August 8, 2024, the Option Agreement with Landore Resources Canada Inc. was amended to modify the payment due dates for the remaining payments. The payments remaining at that time and due dates were: September 20, 2024 cash payment of $262,500 and convertible stock payment of $250,000; March 20, 2025 convertible stock payment of $275,000; and March 20, 2026 cash payment of $525,000 and convertible stock payment of $787,500. A voluntary pooling arrangement with respect to the shares was also agreed that will allow 20% of each instalment of shares to be released for trading on issuance (subject to the statutory hold period), an additional 40% to be released on the first anniversary of the share issuance and the remaining 40% to be released on the second anniversary of the share issuance. In addition, if Landore wishes to dispose of any shares, Storm will have the ability to find a buyer. Finally, if Landore acquires direction or control of 10% or more of the issued shares of Storm, it will have the right to appoint one director to the Board of Directors, subject to TSX Venture Exchange ("TSX-V") acceptance.

On November 8, 2024, the Company completed an option payment consisting of $262,500 cash and the issuance of 1,185,216 common shares to Landore. The common shares were recorded at the fair market value at the time of issuance of $0.20 per share.

On April 23, 2025, Storm issued 523,172 common shares to Landore Resources Canada Inc. as partial payment due under the option agreement. The common shares were recorded at the fair market value at the time of issuance of $0.24 per share. On June 25, 2025, the Company issued the remaining 1,559,846 Shares to the Optionor upon TSX Venture approval of the requisite Personal Information Form from the Optionor. The common shares were recorded at the fair market value at the time of issuance of $0.24 per share.

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

3. Exploration and Evaluation Expenses - continued

The Miminiska-Fort Hope Greenstone Belt Projects - continued

The schedule of payments under the Option Agreement is reflected in the following table.

Table 1 -Option Payments for 100% interest in Miminiska and Keezhik properties

Payment Date	Cash	Cash or Shares
On signing of the Option Agreement (paid)	$25,000	-
July 4, 2021 (paid)	$100,000	-
6-month payment: December 24, 2021 (paid)	$250,000	$400,000
12-month payment: June 24, 2022 (paid)	$250,000	$500,000
19-month payment: January 24, 2023 (paid)	$250,000	$250,000
September 20, 2024 (paid)	$262,500	$250,000
March 20, 2025 (paid)	$nil	$275,000
March 20, 2026	$525,000	$787,500
Total	$1,662,500	$2,462,500

The Miminiska-Fort Hope Greenstone Belt Projects (the "Exploration Properties") lie within the traditional territory of the Eabametoong First Nation (the "EFN"). On May 16, 2024, the Company signed an Exploration Agreement (the "EA") with the EFN concerning the Exploration Properties.

Under the terms of the EA, Storm will make contributions to a community fund equal to 6% of exploration expenditures in EFN territory. In addition, the Company will issue to the EFN, $275,000 in common shares of Storm over a four year period, commencing with $25,000 in common shares to be issued within 90 days of TSX-V acceptance of the EA. Subject to annual TSX-V approval, the Company will also issue common shares equal to 2% of exploration expenditures in EFN territory. Subsequent to the year end on April 29, 2025, an amendment to the EA was made adding a one-time cash payment of $30,000. The original EA along with the amendment was approved on May 27, 2025..

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

3. Exploration and Evaluation Expenses - continued

b) Gold Standard Project

The following is a summary of accumulated exploration and evaluation expenses:

Balance, March 31, 2025	$ 545,747
Expenditures	62,595
Balance, June 30, 2025	$ 608,342

On April 21, 2022, the Company entered into an Option Agreement with Messrs. Allan Onchulenko and Peter Gehrels (the "Vendors") to acquire 100% of the 615 ha Gold Standard property (the "Property") located in northwest Ontario, for a purchase price of $120,000 payable in a combination of cash and the Company's common shares. The Company has also staked an additional 252 mineral claims surrounding the Property, bringing the total project area to 5,953 ha.

On May 9, 2024, the Company paid the 24-month option payment due under the terms of the Option Agreement for the Gold Standard property by paying $25,000 cash and issuing 59,524 common shares at a deemed price of $0.42 per share to Messrs. Allan Onchulenko and Peter Gehrels. The shares were recorded at the fair market value at the time of issuance of $0.04 per share.

The Vendors retain a 2% Net Smelter Royalty ("NSR") on the original 615 ha Property and any claims acquired by the Company within a two-kilometre radius of the perimeter of the Property. The Company can buy back 1% of the NSR by paying the Vendors $750,000 at any time.

The transaction was accepted by the TSX-V on May 10, 2022 (the "Effective Date").

Table 2 - Option Payments for the Gold Standard property acquisition

Payment Date	Cash	Convertible Cash
On signing of the LOI (paid)	$5,000	Nil
May 20, 2022 (paid)	$10,000	$15,000
12 month payment: May 10, 2023 (paid)	$20,000	$20,000
24 month payment: May 10, 2024 (paid)	$25,000	$25,000
Total	$60,000	$60,000

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

3. Exploration and Evaluation Expenses - continued

The Gold Standard Project (continued)

The Gold Standard property lies within the traditional territory of the Naicatchewenin and Nigigoonsiminikaaning First Nations. On July 12, 2023 and October 19, 2023, the Company signed Memorandums of Understanding (“MOUs”) with the Naicatchewenin First Nation and the Nigigoonsiminikaaning First Nation, respectively, concerning the Gold Standard Project. Under the terms of the MOUs, the Company will contribute to community funds for each First Nation equal to 4% of all prior exploration costs incurred during the period commencing May 1, 2022 and ending on the date the MOUs are accepted by the TSX-V. The Company will make quarterly contributions to each community fund equal to 3% of the first $10,000,000 in exploration expenditure and 2.5% of exploration expenditures in excess of $10,000,000 from the date the MOU is accepted. Storm will issue $175,000 in common shares as additional payment consideration over four years to the Naicatchewenin First Nation, commencing with $25,000 in common shares upon TSX-V acceptance. Storm will issue 1,300,000 common shares as additional payment consideration over four years to the Nigigoonsiminikaaning First Nation, commencing with 100,000 common shares upon TSX-V acceptance.

The Company received the TSX acceptance in respect to the MOUs and on April 28, 2025 the Company issued 25,000 (100,000 pre-consolidation) Shares to Nigigoonsiminikaaning First Nation and 125,000 (500,000 pre-consolidation) Shares to the Naicatchewenin First Nation to complete the first common share payments under each MOU. In addition on May 1, 2025, the Company paid $29,595 in total towards contribution to community funds equal to 4% of all prior exploration costs incurred during the period commencing May 1, 2022 and ending on the date on May 16, 2025.

4. Flow-Through Premium Liability

The premium paid for flow-through shares in excess of the market value of the shares without the flow-through features is initially recognized as a liability. The liability is subsequently reduced and recorded in the consolidated statements of comprehensive loss on a pro-rata basis based on the corresponding eligible expenditures that have been incurred when it is the Company's intention to file the appropriate renunciation forms with the Canadian taxation authorities.

The continuity of flow-through premium liability is as follows:

Balance, March 31, 2025 9,760

Premium on flow-through shares income (9,760)

Balance, June 30, 2025 $ -

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

4. Flow-Through Premium Liability- continued

In connection with the flow-through financings closed on December 5, 2024, the Company had an obligation to spend a total of $60,000 on qualifying exploration expenditures by December 31, 2025. The remaining obligation was $nil as at June 30, 2025.

5. Share Capital

Authorized share capital

On July 17, 2025, the Company consolidated all its issued and outstanding common shares based on one post-consolidation common share for every four pre-consolidation common shares. All share data and equity-based instruments have been retroactively adjusted to give effect to the consolidation.

The Company is authorized to issue an unlimited number of common shares without par value.

Issued shares

The issued and outstanding common shares consist of the following:

	Number of Common Shares	Amount
Balance, March 31, 2025	16,673,297	18,187,218
Shares issued for option payment (note 3)	2,083,018	562,318
Shares issued for debt settlement	1,759,936	351,987
Share issued for first nations agreements (note 3)	150,000	33,000
Share issuance cost	-	(8,293)
Balance, June 30, 2025	20,666,250	$ 19,126,230

On May 16, 2025 the Company settled an aggregate of $351,987 in outstanding debt (“Debt Settlement”) which included accrued management fees owing to a company controlled by a director and officer of the Company, and accrued management fees to an officer of the Company. In connection with the Debt Settlement, the Company issued an aggregate of 1,759,936 common shares of the Company at a price of $0.20 per Share.

Stock options

The Company has established a “rolling” Share Option Plan (the “Plan”) in compliance with the TSX’s policy for granting share options. Under the Plan, the maximum number of shares reserved for issuance may not exceed 10% of the total number of issued and outstanding common shares and, to any one optionee, may not exceed 5% of the issued shares on a yearly basis. The exercise price of each option shall not be less than the market price of the Company’s stock at the date of grant. Options have expiry dates of no later than 10 years after the grant date. Vesting of options is determined by the Board of Directors at the time of grant.

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

5. Share Capital - continued

Stock options - continued

The continuity of share purchase options is as follows:

	Number of Options	Weighted Average Exercise Price
Outstanding, June 30, 2025 and March 31, 2025	1,517,188	$ 0.97

As at June 30, 2025, the following options were outstanding and exercisable:

Expiry Date	Remaining Contractual Life (in years)	Number of Options	Exercise Price
July 30, 2025	0.1	78,125	$ 1.60
September 30, 2025	0.3	25,000	1.60
July 9, 2026	1.0	125,000	2.40
May 2, 2027	1.8	107,813	3.20
March 29, 2028	2.7	462,500	1.00
September 2, 2029	4.2	253,750	0.28
March 12, 2030	4.7	465,000	0.28
	3.20	1,517,188	$ 0.97

As of June 30, 2025, all options issued under the Plan were fully vested.

Warrants

The continuity of share purchase warrants is as follows:

	Number of Warrants	Weighted Average Exercise Price
Outstanding, March 31, 2025	3,944,919	$ 0.48
Expired	(565,469)	1.00
Outstanding, June 30, 2025	3,379,450	$ 0.382

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

5. Share Capital - continued

Warrants - continued

As at June 30, 2025, the following warrants were outstanding and exercisable:

Expiry Date	Number of Warrants	Exercise Price
November 8, 2026	2,084,500	$ 0.40
December 6, 2026	200,000	0.40
December 6, 2026	265,000	0.48
April 23, 2027	829,950	0.30
	3,379,450	$ 0.382

6. Related Party Transactions and Balances

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.

Key management personnel receive compensation in the form of short-term employee benefits. Key management personnel include the directors and officers of the Company. The remuneration of key management personnel during the three months ended June 30, 2025 and 2024 is as follows:

	2025		2024
Salaries and management fees	$	30,000	$ 71,250
	$	30,000	$ 71,250

As at June 30, 2025, accounts payable and accrued liabilities include amounts due to related parties of $174,517 (2024 - $180,737).

These transactions were in the normal course of business and were measured at the exchange amount. Amounts due to related parties are unsecured, non-interest bearing, and have no formal terms of repayment.

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

7. Additional Cash Flow Information

The net change in non-cash working capital consists of the following:

	2025	2024
Sales taxes recoverable	$ (6,980)	$ (640)
Prepaid expenses	-	(37,030)
Accounts payable and accrued liabilities	107,036	833
	$ 101,141	$ (36,837)

8. Management of Capital

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to pursue the sourcing and exploration of its resource property. The Company does not have any externally imposed capital requirements to which it is subject.

The Company considers the aggregate of its share capital, contributed surplus and deficit as capital. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares or dispose of assets or adjust the amount of cash.

9. Financial Instruments and Financial Risk

Fair Values and Classification of Financial Instruments

The Company's financial instruments consist of cash, accounts payable and instalment debt. Financial instruments are classified into one of the following categories: FVTPL, FVTOC, or amortized cost. The carrying values of the Company's financial instruments are classified into the following categories:

Financial Instrument	Category	June 30, 2025	June 30, 2024
Cash	FVTPL	$36,291	$28,326
Accounts payable	Amortized cost	980,275	880,546

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

9. Financial Instruments and Financial Risk- continued

Fair Values and Classification of Financial Instruments - continued

International Financial Reporting Standards 7, Financial Instruments: Disclosures, establishes a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Assets measured at fair value on a recurring basis presented on the Company’s consolidated statement of financial position as at June 30, 2025 are 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)
Cash	$ 36,291	$ -	$ 36,291

Assets measured at fair value on a recurring basis presented on the Company’s consolidated statement of financial position as at June 30, 2024 are 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)
Cash	$ 28,326	$ -	$ 28,326

The fair value of the Company’s financial instruments approximates their carrying value as at June 30, 2025 and 2024 because of the demand nature or short-term maturity of these instruments.

Financial risk management objectives and policies

The Company’s financial instruments include cash and accounts payable. The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure appropriate measures are implemented in a timely and effective manner.

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

9. Financial Instruments and Financial Risk – continued

Financial risk management objectives and policies – continued

(i) Currency risk

Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currencies. Management does not hedge its exposure to foreign exchange risk.

The Company’s corporate expenses are denominated in Canadian dollars (“CAD”), and it does not have any significant foreign currency denominated monetary liabilities. The Company’s corporate office is based in Canada and current exposure to exchange rate fluctuations is minimal. The principal business of the Company is the identification and evaluation of assets or a business and once identified or evaluated, to negotiate an acquisition or participation in a business subject to receipt of shareholder approval and acceptance by regulatory authorities.

The Company’s Australian subsidiary is exposed to foreign currency risk on fluctuations related to cash and accounts payable that are denominated in Australian dollars (“AUD”). The following is an analysis of the Canadian dollar equivalent of financial assets and liabilities that are denominated in Australian dollars:

	June 30, 2025
Cash	AUD$ 394
Accounts payable	(53,315)
Total in foreign currency	(52,921)
Net exposure	5,562
Canadian dollar equivalents	$ (47,359)

Based on the net Canadian dollar denominated asset and liability exposures as at June 30, 2025, a 10% fluctuation in the CAD/AUD exchange rates would impact the Company’s earnings for the three months ended June 30, 2025 by $4,736

(ii) Interest rate risk

The Company is exposed to interest rate risk on the variable rate of interest earned on bank deposits. The fair value interest rate risk on bank deposits is insignificant as the deposits are short-term.

The Company has not entered into any derivative instruments to manage interest rate fluctuations.

(iii) Credit risk

Credit risk is the risk of loss associated with the counterparty’s inability to fulfill its payment obligations. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. To minimize the credit risk, the Company places these instruments with a high quality financial institution.

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Storm Exploration Inc.

Notes to the Consolidated Financial Statements

For the three months ended June 30, 2025 and 2024

(Expressed in Canadian Dollars)

9. Financial Instruments and Financial Risk – continued

Financial risk management objectives and policies – continued

(iv) 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’s accounts payable have contractual maturities of 30 days and are subject to normal trade terms. As at June 30, 2025, the Company has a cash balance of $36,291 to settle current liabilities of $980,275 and requires additional funding to fund its current obligations.

(iv) Liquidity risk (continued)

In the management of liquidity risk of the Company, the Company maintains a balance between continuity of funding and the flexibility through the use of borrowings. Management closely monitors the liquidity position and expects to have adequate sources of funding to finance the Company’s projects and operations.

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