Viscount Mining Corp. — Annual Report 2025

Dec 29, 2025

VISCOUNT MINING CORP.

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED AUGUST 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 Viscount Mining Corp.

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Viscount Mining Corp. (the "Company"), which comprise the consolidated statements of financial position as at August 31, 2025 and 2024, and the consolidated statements of loss and comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as at August 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 audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the consolidated financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our 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 consolidated financial statements, which indicates that the Company cannot provide assurance that it will ultimately achieve profitable operations or become cash flow positive or raise additional debt and/or equity capital. As stated in Note 1, continuation of the Company as a going concern is dependent on the Company's ability to successfully fund its cash obligations through financing. These matters, 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 consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

In addition to the matter described in the Material Uncertainty Related to Going Concern section, we have determined 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 the Exploration and evaluation assets.	Our approach to addressing the matter included the following procedures, among others:
Refer to note 2 – Significant Accounting Judgments, Estimates and Assumptions, note 2 – Accounting policy for Exploration and evaluation properties and note 5 Exploration and evaluation properties	Evaluated the reasonableness of management’s assessment of impairment indicators, which included the following:
• Assessed the Company’s market capitalization in comparison to the Company’s net assets, which may be

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Management assesses at each reporting period whether there is an indication that the carrying value of the exploration and evaluation assets may not be recoverable. Management applies significant judgment in assessing whether indicators of impairment exist that necessitate 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.

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 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 consolidated financial statements and our auditor's report thereon.

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

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, and in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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

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

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

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

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current 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 James Roxburgh.

De Visser Gray LLP

Vancouver, BC, Canada
December 29, 2025

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VISCOUNT MINING CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in Canadian dollars)
As at

	Note	August 31, 2025 ($)	August 31, 2024 ($)
ASSETS
Current
Cash and cash equivalents	3	1,665,219	2,176,758
Amounts receivable and prepaid expenses	4	19,684	13,538
		1,684,903	2,190,296
Reclamation bond		119,245	31,197
Exploration and evaluation properties	5	8,314,278	6,615,824
Total Assets		10,118,426	8,837,317
LIABILITIES
Current liabilities
Trade payables and accrued liabilities	6	416,421	599,386
Total liabilities		416,421	599,386
SHAREHOLDERS’ EQUITY
Share capital	7	25,381,715	24,456,976
Subscriptions receivable	7	-	(1,900,000)
Reserves	7	1,564,650	1,580,314
Deficit		(17,244,360)	(15,899,359)
Total shareholders’ equity		9,702,005	8,237,931
Total Liabilities and Shareholders’ Equity		10,118,426	8,837,317

Nature and Continuance of Operations (Note 1)
Commitments (Note 9)
Subsequent event (Note 7)

These consolidated financial statements are authorized for issuance by the Board of Directors on December 29, 2025.

On behalf of the Board:

"Jim MacKenzie" Director "Andrew Gertler" Director

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

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VISCOUNT MINING CORP.
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Expressed in Canadian dollars)

	Note	Year Ended August 31, 2025 ($)	Year Ended August 31, 2024 ($)
Expenses
Consulting and management compensation	6	721,423	522,252
Foreign exchange		13,450	22,403
General exploration		49,516	-
Insurance		48,462	57,555
Interest expense		-	19,592
Legal and accounting	6	138,095	360,699
Office and miscellaneous		60,874	19,151
Promotion		151,399	171,211
Share-based payments	7	473,579	-
Transfer agent and filing fees		52,689	66,559
		(1,709,487)	(1,239,422)
Interest income		43,203	2,003
Other income		71,719	67,980
Legal settlement costs		-	(58,490)
Extinguishment of accounts payable		-	115,137
Loss and comprehensive loss for the year		(1,594,565)	(1,112,792)
Loss per share, basic and diluted		(0.01)	(0.01)
Weighted average number of common shares outstanding – basic and diluted		110,705,838	90,800,483

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

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VISCOUNT MINING CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in Canadian dollars)
For the years ended August 31,

| | 2025
($) | 2024
($) |
| --- | --- | --- |
| Cash Flows from Operating Activities | | |
| Loss for the year | (1,594,565) | (1,112,792) |
| Items not involving cash: | | |
| Extinguishment of accounts payable | - | (115,137) |
| Foreign exchange | 3,556 | 2,858 |
| Share-based payments | 473,579 | - |
| Changes in operating assets and liabilities: | | |
| Amounts receivable and prepaid expenses | (6,146) | 35,408 |
| Trade payables and accrued liabilities | (182,108) | 14,932 |
| | (1,305,684) | (1,174,731) |
| Cash Flows from Investing Activities | | |
| Exploration and evaluation expenditures | (1,674,811) | (325,384) |
| Reclamation bonds, net | (91,604) | - |
| | (1,766,415) | (325,384) |
| Cash Flows from Financing Activities | | |
| Shares issued for cash | - | 3,652,300 |
| Shares issuance costs | - | (25,000) |
| Proceeds from loan payable | - | 270,000 |
| Repayment of loan payable | - | (270,000) |
| Exercise of warrants | 291,000 | - |
| Exercise of stock options | 369,560 | - |
| Subscriptions receivable | 1,900,000 | - |
| | 2,560,560 | 3,627,300 |
| Change in cash and cash equivalents | (511,539) | 2,127,185 |
| Cash and cash equivalents, beginning | 2,176,758 | 49,573 |
| Cash and cash equivalents, end | 1,665,219 | 2,176,758 |

Supplemental cash flow information (Note 8)

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

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VISCOUNT MINING CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Expressed in Canadian dollars)

	Number of Shares	Share Capital ($)	Reserves ($)	Subscriptions Receivable ($)	Deficit ($)	Total ($)
Balance, August 31, 2023	88,392,462	19,065,633	1,729,134	(185,875)	(14,945,042)	5,663,850
Shares issued for cash	22,209,200	5,552,300	-	(1,900,000)	-	3,652,300
Share issue costs	-	(34,655)	9,655	-	-	(25,000)
Shares issued for mineral property	236,189	59,573	-	-	-	59,573
Shares returned to treasury	(462,500)	(161,875)	-	161,875	-	-
Write-down of share subscriptions	-	(24,000)	-	24,000	-	-
Adjustment on expiry of options	-	-	(158,475)	-	158,475	-
Loss for the year	-	-	-	-	(1,112,792)	(1,112,792)
Balance, August 31, 2024	110,375,351	24,456,976	1,580,314	(1,900,000)	(15,899,359)	8,237,931
Shares issued for mineral property	100,000	24,500	-	-	-	24,500
Warrants exercised	970,000	291,966	(966)	-	-	291,000
Stock options exercised	981,866	608,273	(238,713)	-	-	369,560
Adjustment on expiry of options	-	-	(249,564)	-	249,564	-
Subscriptions receivable	-	-	-	1,900,000	-	1,900,000
Share-based payments	-	-	473,579	-	-	473,579
Loss for the year	-	-	-	-	(1,594,565)	(1,594,565)
Balance, August 31, 2025	112,427,217	25,381,715	1,564,650	-	(17,244,360)	9,702,005

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

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

1. Nature and Continuance of Operations

Viscount Mining Corp. (the "Company") was incorporated under the British Columbia Business Corporations Act on October 26, 2011. The Company's registered office is located at 250 - 750 West Pender St. Vancouver, BC, V6C 2T7. The Company is listed on the TSX Venture Exchange (TSX-V) and trades under the symbol "VML".

The Company is an exploration stage company, and its principal business activity is natural resource exploration, focusing on resources located in the states of Nevada and Colorado in the USA. Mining and exploration involve a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The Company has no source of revenue and has significant cash requirements to conduct its planned exploration, meet its administrative overhead and maintain its resource interests.

These consolidated financial statements have been prepared on the going concern basis, which contemplates that the Company will be able to realize its assets and discharge liabilities in the normal course of business. There can be no assurance that the Company will either achieve or maintain profitability in the future.

As at August 31, 2025, the Company had cash of $1,665,219 on August 31, 2025 and working capital of $1,268,482. Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive or raise additional debt and/or equity capital. For the year ended August 31, 2025, the Company had no source of operating revenues, incurred an operating loss of $1,594,565 and, as at that date, had an accumulated deficit of $17,244,360. The continuation of the Company as a going concern is dependent on the Company's ability to successfully fund its cash obligations through financing. Although the Company has been successful in obtaining the necessary financing to date, there can be no assurance that adequate or sufficient financing will be available in the future, or available under terms acceptable to the Company, or the Company will be able to generate sufficient positive cash flow from operations. These circumstances indicate the existence of a material uncertainty which casts significant doubt as to the ability of the Company to meet its obligations as the come due, and accordingly, the appropriateness of the use of the accounting principles applicable to a going concern.

These consolidated financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. Should the Company be unable to generate sufficient cash flow from operations or financing activities, the carrying value of the Company's assets could be subject to material adjustments and other adjustments may be necessary to these consolidated financial statements should such adverse events impair the Company's ability to continue as a going concern.

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VISCOUNT MINING CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended August 31, 2025 and 2024
(Expressed in Canadian Dollars)

2. Material Accounting Policy Information

Statement of Compliance

The consolidated financial statements of the Company, including comparatives, have been prepared in accordance with and using accounting policies in compliance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”), effective for the Company’s reporting for the year ended August 31, 2025.

Basis of Preparation

These consolidated financial statements have been prepared on the historical cost basis except for financial instruments classified as fair value through profit or loss. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for the cash flow information. The presentation and functional currency of the Company and its subsidiaries is the Canadian dollar.

Significant Accounting Judgments, Estimates and Assumptions

The preparation of the Company’s consolidated 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 consolidated financial statements and reported amounts of income 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.

Information about critical estimates and judgments in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the consolidated financial statements within the next financial year are discussed below:

Recoverability of Capitalized Exploration and Evaluation Expenditures

The application of the Company’s accounting policy for exploration and evaluation expenditures requires judgment in determining whether it is likely that future economic benefits will flow to the Company and the maintenance of good standing of the mineral titles, which may be based on assumptions about future events or circumstances. Estimates and assumptions made may change if new information becomes available. If, after the expenditures are capitalized, information becomes available suggesting that the recovery of the expenditures is unlikely, the amount capitalized is written off in profit or loss in the year the new information becomes available.

Share-based payments

The fair value of share options granted is measured using the Black-Scholes option pricing model. Measurement inputs include the share price on the measurement date, exercise price of the options, expected volatility, expected life of the options, expected dividends and the risk-free interest rate. These estimates will impact the amount of share-based payments recognized. When stock options are exercised, the cash proceeds along with the amount previously recorded as share-based payment reserves are recorded as share capital.

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VISCOUNT MINING CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended August 31, 2025 and 2024
(Expressed in Canadian Dollars)

2. Material Accounting Policy Information (continued)

Income taxes

Related assets and liabilities are recognized for the estimated tax consequences between amounts included in the financial statements and their tax base using substantively enacted future income tax rates. Timing of future revenue streams and future capital spending changes can affect the timing of any temporary differences and, accordingly, affect the amount of the deferred tax asset or liability calculated at a point in time.

Basis of Consolidation

The Company’s consolidated financial statements include the accounts of the Company and its subsidiaries. A subsidiary is an entity (including a special purpose entity) controlled by the Company, where control is achieved by the Company having the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls another entity. A subsidiary is fully consolidated from the date on which control is obtained by the Company and is de-consolidated from the date that control ceases.

The following subsidiaries have been consolidated for all dates presented within these financial statements, and are wholly owned: Viscount Mining Resources Ltd., Viscount Nevada Holdings Ltd. (“Viscount Nevada”) and Viscount Colorado Holdings Ltd. (“Viscount Colorado”).

All significant inter-company transactions, balances, income and expenses are eliminated on consolidation.

Cash and cash equivalents

Cash and cash equivalents are comprised of cash on deposit and short-term deposits with original maturity under three months.

Exploration and evaluation properties

Once a license to explore an area has been secured, all direct costs related to the acquisition, exploration and evaluation of mineral property interests are capitalized as exploration and evaluation properties on a property by property basis. At such time that technical feasibility and commercial viability of extracting a mineral resource has been determined for a property, the capitalized exploration and evaluation costs are first tested for impairment and then transferred and capitalized into property, plant and equipment. The Company records expenditures on exploration and evaluation activities at cost.

Proceeds received from a partial sale or option of any interest in a property are credited against the carrying value of the property. When the proceeds exceed the carrying costs, the excess is recorded in profit or loss in the period the excess is received. When all of the interest in a property is sold, subject only to any retained royalty interests which may exist, the accumulated property costs are de-recognized, with any gain or loss included in profit or loss in the period the transfer takes place.

When entitled, the Company records mineral exploration tax credits or incentive grants on an accrual basis and as a reduction of the carrying value of the properties.

Management assesses the exploration and evaluation assets for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The assessment is based on the development program, the nature of the mineral deposit, commodity prices and the Company’s intentions and ability for development of the undeveloped property. If, after management review, it is determined that the carrying amount of a mineral property is impaired, that property is written down to its estimated recoverable amount. The recoverable amount of an asset is determined as the higher of its fair value less costs to sell and its value in use. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

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VISCOUNT MINING CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended August 31, 2025 and 2024
(Expressed in Canadian Dollars)

2. Material Accounting Policy Information (continued)

Provision for decommissioning and restoration

The Company recognizes provisions for statutory, contractual, constructive or legal obligations associated with the reclamation of mineral properties in the year in which it is probable that an outflow of resources will be required to settle the obligation and when a reliable estimate of the amount can be made. Initially, a provision for a decommissioning liability is recognized based on expected cash flows required to settle the obligation and discounted at a pre-tax rate specific to the liability. The capitalized amount is depreciated on the same basis as the related asset. Following the initial recognition of the decommissioning liability, the carrying amount of the liability is increased for the passage of time and adjusted for changes to the current market-based discount rate and the amount or timing of the underlying cash flows needed to settle the obligation. The increase in the provision due to passage of time is recognized as interest expense. Significant judgments and estimates are involved in forming expectations of the amounts and timing of future closure and reclamation cash flows. As at August 31, 2025 and 2024, the Company had no known restoration, rehabilitation or environmental liabilities related to its mineral properties.

Financial instruments

i. Financial assets

The Company classifies its financial assets in the following categories: at fair value through profit or loss ("FVTPL"), at fair value through other comprehensive income ("FVTOCI") and at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at initial recognition. A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold assets and collect contractual cash flows, its contractual terms give rise on specified dates that are solely payments of principle and interest on the principle amount outstanding, and it is not designated as FVTPL. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, the Company can make an irrevocable election (on an instrument by-instrument basis) on the day of acquisition to designate them as at FVTOCI.

Financial assets at FVTPL

Financial assets carried at FVTPL are initially recorded at fair value and transaction costs are expensed in profit or loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial asset held at FVTPL are included in profit or loss in the period in which they arise. The Company's cash is classified as FVTPL.

Financial assets at FVTOCI

Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. None of the Company's financial assets are classified as FVTOCI.

Financial assets at amortized cost

Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date. The Company's reclamation bonds are classified as at amortized cost.

Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Gains and losses on derecognition of financial assets classified as FVTPL or amortized cost are recognized in profit or loss. Gains or losses on financial assets classified as FVTOCI remain within accumulated other comprehensive income.

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

2. Material Accounting Policy Information (continued)

ii. Financial liabilities

The Company classifies its financial liabilities as subsequently measured at amortized cost which include trade payables and accrued liabilities. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or they expire.

iii. Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the loss allowance is measured for the financial asset at an amount equal to twelve month expected credit losses. For trade receivables the Company applies the simplified approach to providing for expected credit losses, which allows the use of a lifetime expected loss provision. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognized. Given the nature and balances of the Company’s receivables the Company has no material loss allowance as at August 31, 2025 and 2024.

Per Share Information

Basic income (loss) per share amounts are calculated by dividing the profit or loss attributable to shareholders of the Company by the weighted average number of shares outstanding during the year.

Diluted income/loss per share amounts are determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares, which consist of warrants and stock options (Note 7).

Share Capital

Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects. Common shares issued for consideration other than cash are valued based on their market value at the date the shares are issued.

The Company has adopted a residual value method with respect to the measurement of shares and warrants issued as private placement units. The residual value method first allocates value to the more easily measurable component based on fair value and then the residual value, if any, to the less easily measurable component. The Company considers the fair value of common shares issued in a private placement to be the more easily measurable component and the common shares are valued at their fair value. The balance, if any, is allocated to the attached warrants. Any fair value attributed to the warrants is recorded as reserves.

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VISCOUNT MINING CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended August 31, 2025 and 2024
(Expressed in Canadian Dollars)

2. Material Accounting Policy Information (continued)

Share-based Payments

Share-based payments to employees are measured at the fair value of the instruments issued and recognized over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The corresponding amount is recorded to the stock options reserve. The fair value of options is determined using the Black-Scholes Option Pricing Model which incorporates all market vesting conditions. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that will eventually vest. When options are cancelled or expire, the remaining amount in the stock option reserve for the specific grant is transferred to retained earnings (deficit).

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. Parties are also considered to be related if they are subject to common control, 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.

Income Taxes

Income tax 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 or other comprehensive income (loss), in which case the income tax is also recognized directly in equity or other comprehensive income (loss).

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted, or substantively enacted, at the end of the reporting period, and any adjustment to tax payable in respect of previous years.

Current tax assets and current tax liabilities are only offset if a legally enforceable right exists to set off the amounts, and the Company intends to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Deferred tax is based on all temporary differences at the statement of financial position date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the statement of financial position date.

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

2. Material Accounting Policy Information (continued)

Foreign Currencies

The Company’s reporting currency and the functional currency of all of its operations and its subsidiaries is the Canadian dollar as this is the principal currency of the economic environment in which it operates.

Foreign currency transactions are translated into the presentation currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the period-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items or on settlement of monetary items are recognized in profit or loss in the period in which they arise, except where deferred in equity as a qualifying cash flow or net investment hedge.

Accounting pronouncement not yet adopted

IFRS 18 Presentation and Disclosure in Financial Statements, which will replace IAS 1, Presentation of Financial Statements aims to improve how companies communicate in their financial statements, with a focus on information about financial performance in the statement of profit or loss, in particular additional defined subtotals, disclosures about management-defined performance measures and new principles for aggregation and disaggregation of information. IFRS 18 is accompanied by limited amendments to the requirements in IAS 7 Statement of Cash Flows. IFRS 18 is effective from January 1, 2027. Companies are permitted to apply IFRS 18 before that date. Management believes that IFRS 18 will likely have a material impact on the Company’s presentation of its consolidated financial statements.

3. Cash and cash equivalents

	As at August 31, 2025 ($)	As at August 31, 2024 ($)
Cash	1,665,219	2,176,758
	1,665,219	2,176,758

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

4. Amounts Receivable and Prepaid Expenses

Amounts receivable and prepaid expenses consist of the following:

	As at August 31, 2025 ($)	As at August 31, 2024 ($)
Goods and Services Tax receivable	19,421	13,538
Prepaid insurance, filing fees and travel expenses	263	-
	19,684	13,538

Amounts receivable are non-interest bearing, unsecured and have settlement dates within one year.

5. Exploration and Evaluation Properties

Exploration and evaluation expenditures by project as at August 31, 2025 and 2024, excluding expenditures and recoveries under the Centerra agreement, are as follows:

	Nevada Properties ($)	Colorado Properties ($)	Total ($)
Balance, August 31, 2023	1,315,350	5,001,234	6,316,584
Additions:
Acquisition
Property payments	13,851	234,182	248,033
Deferred exploration costs:
Claim maintenance	-	26,626	26,626
Consulting	-	19,419	19,419
Field operations	-	123	123
Reporting	-	120	120
Storage and supplies	-	4,919	4,919
	13,851	285,389	299,240
Balance, August 31, 2024	1,329,201	5,286,623	6,615,824
Additions:
Acquisition
Property payments	27,741	339,642	367,383
Shares issued for property	-	24,500	24,500
Deferred exploration costs:
Assays	-	33,210	33,210
Claim maintenance	64,820	27,254	92,074
Consulting	4,906	315,312	320,218
Drilling	-	773,138	773,138
Field operations	-	11,045	11,045
Storage and supplies	-	23,096	23,096
Survey	-	1,770	1,770
Travel	-	8,125	8,125
Water	-	43,895	43,895
	97,467	1,600,987	1,698,454
Balance, August 31, 2025	1,426,668	6,887,610	8,314,278

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

5. Exploration and Evaluation Properties (continued)

A summary of the changes in the Company’s exploration and evaluation properties for the years ended August 31, 2025 and 2024 are as follows:

A. Nevada Properties, described collectively as the Cherry Creek Project (the “Property”), is in the Cherry Creek Mining District, in White Pine County, Nevada.

In January 2021, Viscount entered into an exploration earn-in agreement with a wholly owned subsidiary of Centerra Gold Inc. (“Centerra”) whereby Centerra had the option to earn up to a 70% interest in the Cherry Creek Project. Under terms of the Agreement, Centerra had the right to acquire a 70% interest in the Property through (a) making annual payments totaling US$250,000 over a 4-year period, and (b) spending US$8,000,000 on mineral exploration costs on the Property. During the year ended August 31, 2025, this agreement was terminated by Centerra.

During the year ended August 31, 2022, the Company signed an agreement to acquire the Mary Anne group claims located adjacent to the 100% controlled Cherry Creek Project in eastern White Pine County, Nevada.

The Company may acquire a 100% interest in the property under the following terms:

a. US$20,000 paid on October 1, 2021 (the “Approval Date”) (paid), to occur within 5 days of signing agreement (paid at the Canadian equivalent of $25,600).

b. US$30,000 paid on or before each anniversary of the Approval Date (first anniversary – paid by Centerra; second anniversary – paid by Centerra; third anniversary – paid; fourth anniversary – unpaid) of the agreement to the 20th anniversary of such date, being the Closing Date.

The Company may accelerate or prepay any of the payments and thereby accelerate the closing date.

A 2.5% Net Smelter Return (“NSR”) royalty will be paid to the vendor; 1% of which can be purchased for $1,000,000, thus reducing the royalty to 1.5%.

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

5. Exploration and Evaluation Properties (continued)

B. Colorado Properties, described collectively as Silver Cliff, consists of certain claims located in the district of Colorado.

On August 13, 2014, the Company entered into an option agreement (the "Silver Cliff Agreement") with David C. and Debra J. Knight Living Trust (the "Owner"), whereby the Owner has agreed to grant an option to the Company to acquire an undivided 100% interest in the Silver Cliff project (the "Silver Cliff Property"), effective September 15, 2014. Pursuant to the agreement, as amended, the Company agreed to the following:

1) Issuing to the Owner 200,000 shares and 200,000 warrants (issued).
2) Make payments on behalf of the Owner for claim rental fees due to the U.S. Bureau of Land Management ("BLM").
3) Making payments to the Owner in the aggregate amount of US$3,000,000 plus a cost-of-living adjustment effective from the anniversary payment. As of August 31, 2025, US$590,000 has been paid, including US$100,000 during the year ended August 31, 2025. Remaining option payments, which require cost of living adjustments to be added, are as follows:

a. US$150,000 on the eleventh anniversary, September 15, 2025 (paid subsequent to August 31, 2025);
b. US$200,000 on the twelfth anniversary, September 15, 2026; and
c. Paying the remaining outstanding balance of the required US$3,000,000 on the thirteenth anniversary, September 25, 2027.

4) The Company entered into a series of amending agreements in fiscal 2020 to delay the fifth anniversary payment. Pursuant to these amendments, the Company issued 949,000 common shares valued at $253,670 and paid cash of US$5,000.
5) Royalty payments to the Owner of 2% of the NSR royalty and issuance of an additional 550,000 shares and 550,000 warrants upon the commencement of commercial production.
6) The Company agreed to issue Kingsmere Mining Ltd. a finder's fee of 500,000 shares (issued, including a final issuance of 100,000 shares valued at $24,500 during the year ended August 31, 2025).

In fiscal 2017, the Company increased its land holding at the Silver Cliff project by entering into a series of 10-year mineral lease agreements and a property option agreement with the owners of the Kate deposits (the "Co-owners"). Upon the commencement of commercial production, these agreements will be subject to an aggregate of 1.5% NSR royalty to the Co-owners, based on their ownership interest in the property. As of August 31, 2025, US$779,599 has been paid ($1,039,201). The remaining lease payments are as follows:

a. US$147,000 on the eighth anniversary, between May 12 and June 5, 2025 (US$60,520 paid during the year ended August 31, 2025; US$15,000 paid subsequent to August 31, 2025; and US$71,480 unpaid);
b. US$198,040 on the ninth anniversary, between May 12 and June 5, 2026; and
c. US$1,208,000 on the tenth anniversary, between May 12 and June 5, 2027.

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

6. Related Party Transactions

Related party transactions were in the normal course of operations and measured at the exchange amount, which 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.

As at August 31, 2025, $1,508 (August 31, 2024 - $660) is due to the CEO/Director of the Company, $126 (August 31, 2024 - $126) is due to the Director/Manager of the Company, $164 (August 31, 2024 - $nil) is due to the Chief Geologist/Director of the Company, and are included in trade payables and accrued liabilities. All amounts owing to related parties are unsecured, non-interest bearing and due on demand. Amounts paid are for consulting services and advances on behalf of the Company provided by the related parties or by companies they control.

The key management personnel compensation for the years ended August 31, 2025 and 2024 are summarized as follows:

	Year ended August 31, 2025 ($)	Year ended August 31, 2024 ($)
Chief Executive Officer/Director	427,770*	251,800
Chief Financial Officer	72,000	72,000
Director/Manager	164,963	155,667
Director/Chief Geologist	31,685	13,530
Family member of the Chief Executive Officer	48,000	48,000
	744,418	540,997

• includes a one-time cash bonus of $126,000.

During the year ended August 31, 2025, the Company granted 1,800,000 stock options to related parties, including key management personnel as defined under IAS 24. The fair value of the options granted was determined using the Black-Scholes option pricing model. The Company recognized $227,318 in share-based compensation expense related to these awards during the year, which has been included in share-based payment expense in the consolidated statement of loss and comprehensive loss.

7. Share Capital

A. Authorized

The authorized share capital consists of an unlimited number of common shares without par value and without special rights or restrictions attached and an unlimited number of preferred shares without par value and with special rights or restrictions.

19 | Page

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

7. Share Capital (Continued)

B. Issued and Outstanding

As at August 31, 2025, the total issued, and outstanding common shares was 112,427,217 common shares with no par value.

Share capital transactions of the Company during the years ended August 31, 2025 and 2024 are summarized as follows:

i) During the year ended August 31, 2024, the Company closed a non-brokered private placement by issuing 22,209,200 units at $0.25 per unit for gross proceeds of $5,552,300, of which $1,900,000 was received during the year ended August 31, 2025. Each unit consists of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of $0.30 per common share until the date that is 24 months from the date of issuance.

In connection with the closing of the offering, the Company paid finders' fees of $25,000 in cash and issued 100,000 non-transferable finders' warrants under the same terms at a fair value of $9,655 using the Black-Scholes option pricing model with the following assumptions: term of 2 years; expected volatility of 77.80%; risk-free rate of 3.70%; and expected dividends of Nil.

ii) During the year ended August 31, 2024, the Company entered into a debt settlement agreement to issue 161,189 common shares to settle an outstanding debt relating to the Silver Cliff property payments totaling $37,073.

iii) During the year ended August 31, 2024, the Company returned to treasury and cancelled 462,500 shares valued at $161,875 and wrote-down $24,000 included in subscriptions receivable as at August 31, 2023.

iv) During the year ended August 31, 2024, the Company issued 75,000 common shares valued at $22,500 to Kingsmere Mining Ltd. in accordance with the Finders Fees agreement between the Company and Kingsmere (Note 5).

v) During the year ended August 31, 2025, the Company issued 100,000 common shares valued at $24,500 to Kingsmere Mining Ltd. in accordance with the Finders Fees agreement between the Company and Kingsmere (Note 5).

vi) During the year ended August 31, 2025, the Company issued 970,000 common shares from the exercise of 960,000 warrants and 10,000 finders' warrants for total proceeds of $291,000.

vii) During the year ended August 31, 2025, the Company issued 981,866 common shares from the exercise of options for proceeds of $369,560

C. Warrants

The following is a summary of the changes in the Company's share purchase warrants for the years ended August 31, 2025 and 2024:

Expiry Date	August 31, 2025		August 31, 2024
	Number of Warrants Outstanding	Weighted average exercise price ($)	Number of Warrants Outstanding	Weighted average exercise price ($)
Outstanding, beginning of year	22,309,200	0.30	-	-
Issued	-	-	22,309,200	0.30
Exercised	(970,000)	0.30	-	-
Outstanding and exercisable warrants	21,339,200	0.30	22,309,200	0.30

The weighted-average remaining contractual life of the warrants at August 31, 2025 was 0.88 years (2024 - 1.88 years).

20 | Page

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

7. Share Capital (continued)

C. Warrants (continued)

The following table summarizes information regarding warrants outstanding and exercisable as at August 31, 2025 and 2024:

Expiry Date	August 31, 2025		August 31, 2024
	Exercise Price ($)	Number of Warrants Outstanding	Exercise Price ($)	Number of Warrants Outstanding
July 18, 2026*	0.30	21,339,200	0.30	22,309,200
Outstanding		21,339,200		22,309,200

*Subsequent to the year ended August 31, 2025, 200,000 warrants were exercised for proceeds of $60,000.

D. Stock Option Plan

The Company's stock option plan (the "Plan") allows the Company to issue options to certain directors, officers, employees, and consultants of the Company. Options issued under the Plan shall not exceed 10% of the shares issued and outstanding at the time of granting of the options. Options granted under the Plan may have a maximum term of ten years. Stock options granted under the Plan may be subject to vesting terms, which may be imposed at the discretion of the directors.

During the year ended August 31, 2025, 981,866 stock options were exercised for proceeds of $369,560. The weighted-average share price at the date of exercise was $0.86 per share, compared with a weighted-average exercise price of $0.38 per share.

The following is a summary of the changes in the Company's stock options for the years ended August 31, 2025 and 2024:

Expiry Date	August 31, 2025		August 31, 2024
	Number of Options Outstanding	Weighted average exercise price ($)	Number of Options Outstanding	Weighted average exercise price ($)
Outstanding, beginning of year	5,900,000	0.39	6,754,000	0.37
Granted	3,750,000	0.30	-	-
Exercised	(981,866)	0.38	-	-
Cancelled/Expired	(900,000)	0.40	(854,000)	0.22
Outstanding and exercisable options	7,768,134	0.35	5,900,000	0.39

The weighted-average remaining contractual life of the options at August 31, 2025 was 2.10 years (2024 - 1.13 years).

21 | Page

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

7. Share Capital (continued)

D. Stock Option Plan (continued)

The following table summarizes information regarding stock options outstanding and exercisable as at August 31, 2025 and 2024:

Expiry Date	August 31, 2025		August 31, 2024
	Exercise Price ($)	Number of Options Outstanding	Exercise Price ($)	Number of Options Outstanding
August 20, 2025*	0.40	2,250,000	0.40	3,800,000
October 25, 2025*	0.40	400,000	0.40	400,000
January 26, 2026	0.38	900,000	0.38	1,000,000
March 29, 2026	0.38	700,000	0.38	700,000
January 22, 2030	0.30	3,518,134	-	-
Outstanding and exercisable options		7,768,134		5,900,000

• Option expiry dates fell within a Company-imposed trading blackout, during which exercises were prohibited. In accordance with the Company's trading policy, expiry dates were extended to allow exercise for 10 days after the blackout is lifted.

During the year ended August 31, 2025, the Company granted 3,750,000 stock options at an exercise price of $0.30 per share. The total stock-based compensation recognized on stock options granted during the year ended August 31, 2025 was $473,579.

The weighted average fair value of the stock options granted during the year ended August 31, 2025 was $0.13, calculated using the Black-Scholes Option Pricing Model on the grant date using the following weighted average assumptions:

	Year ended August 31, 2025	Year ended August 31, 2024
Risk-free interest rate	3.02%	-
Expected life of option	5 years	-
Expected dividend yield	0%	-
Expected stock price volatility	62.18%	-

8. Supplemental Cash Flow Information

• During the year ended August 31, 2025, 100,000 common shares valued at $24,500 were issued for exploration and evaluation properties.
• During the year ended August 31, 2025, the Company transferred $249,564 from option reserves into deficit for options that were cancelled during the year.
• During the year ended August 31, 2025, the Company transferred $238,713 from option reserves into share capital for options that were exercised during the year.
• During the year ended August 31, 2025, the Company transferred $966 from warrant reserves into share capital for warrants that were exercised during the year.
• During the year ended August 31, 2024, 236,189 common shares valued at $59,573 were issued for exploration and evaluation properties.
• During the year ended August 31, 2024, the Company cancelled and returned 462,500 shares valued at $161,875 and included in subscriptions receivable.
• During the year ended August 31, 2024, the Company transferred $158,475 from option reserves into deficit for options that had expired during the year.

22 | Page

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VISCOUNT MINING CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended August 31, 2025 and 2024
(Expressed in Canadian Dollars)

8. Supplemental Cash Flow Information (continued)

• During the year ended August 31, 2024, the Company issued 100,000 non-transferable finders' warrants at a fair value of $9,655 using the Black-Scholes option pricing model.
• As at August 31, 2025, a balance of $31,031 of unpaid exploration and evaluation assets was included in the Company’s trade payable and accrued liabilities (2024 - $31,888).

9. Commitments

The Company is committed to making cash payments, incurring exploration expenditures and/or issuing common shares pursuant to its exploration and evaluation property agreements (Note 5).

10. Capital Management

The Company’s policy is to maintain a strong capital base to maintain investor and creditor confidence and to sustain future development of the business. The capital structure of the Company consists of equity, comprising share capital, net of accumulated deficit. The Company manages the capital structure and adjusts it in light of changes in the economic conditions and the risk characteristics of the underlying assets. The Company manages its capital structure through the issuance of new shares, acquisition or disposition of assets or adjustment of cash. The Company does not have any major capital expenditures committed for the coming year. Management reviews the capital structure on a regular basis to ensure that the above-noted objectives are met. There were no changes in the Company’s approach to capital management during the year. The Company is not subject to any externally imposed capital requirements.

11. Financial Instruments and Risk Management

(a) Overview

The Company has exposure to credit risk, liquidity risk, foreign currency risk, and market risk from its use of financial instruments.

This note presents information about the Company’s exposure to each of these risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital.

The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework.

(b) Credit Risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its liquid financial assets including cash. The Company limits its exposure to credit risk on liquid financial assets through investing its cash with high-credit quality financial institutions.

The carrying value of the Company’s financial instruments represent the maximum exposure to credit risk.

(c) 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 endeavors to ensure that there is sufficient capital in order to meet short term business requirements, after taking into account cash flows from operations and the Company’s holdings of cash. The Company’s cash is currently invested in business and savings accounts with high-credit quality financial institutions which are available on demand by the Company for its programs. At August 31, 2025, the Company had a cash balance of $1,665,219 to settle current liabilities of $416,421. All of the Company’s financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms.

23 | Page

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

11. Financial Instruments and Risk Management (continued)

(d) 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.

(e) Interest Rate Risk

The Company is subject to interest rate risk with respect to its investments in cash. However, the Company does not hold any interest-bearing debt. The Company’s current policy is to invest cash at floating rates of interest and cash reserves are to be maintained in cash in order to maintain liquidity, while achieving a satisfactory return for shareholders. Fluctuations in interest rates when cash balances mature impact interest income earned.

(f) Foreign Currency Risk

As at August 31, 2025, the Company’s expenditures are in Canadian dollars and US dollars, any future equity raised is expected to be predominantly in Canadian dollars. At August 31, 2025, assuming that all other variables remain constant, a 1% depreciation or appreciation of the Canadian dollar would not have a material impact in the Company’s pre-tax income or loss.

(g) Fair Value

The fair value of the Company's financial assets and liabilities approximates their carrying amounts.

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 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.

All of the Company's financial instruments have a fair value approximating their carrying value due to their short-term nature. Cash is carried at fair value and is measured using level 1 inputs.

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

12. Segmented Information

The Company's only business activity is exploration and evaluation of exploration and evaluation properties. This activity is carried out in the USA.

The breakdown of geographic area for the years ended August 31, 2025 and 2024 is as follows:

Year ended August 31, 2025	Canada $	USA $	Total $
Net loss	1,594,565	-	1,594,565
Current assets	1,684,903	-	1,684,903
Reclamation bond	-	119,245	119,245
Exploration and evaluation properties	-	8,314,278	8,314,278
Total assets	1,684,903	8,433,523	10,118,426
Year ended August 31, 2024	Canada $	USA $	Total $
Net loss	1,112,792	-	1,112,792
Current assets	2,190,296	-	2,190,296
Reclamation bond	-	31,197	31,197
Exploration and evaluation properties	-	6,615,824	6,615,824
Total assets	2,190,296	6,647,021	8,837,317

13. Income Taxes

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

	Year ended August 31, 2025		Year ended August 31, 2024
Loss for the year	$	(1,594,565)	$
Expected income tax recovery		(432,000)	(300,000)
Non-deductible expenditures and revenues		132,000	17,000
True-up of prior year provision		(22,000)	-
Change in unrecognized deductible temporary differences		322,000	283,000
Total income tax recovery	$	-	$

The significant components of the Company's deferred tax assets that have not been included on the consolidated statement of financial position are as follows:

	August 31, 2025	August 31, 2024
Deferred tax assets
Exploration and evaluation assets	$ 50,000	$ 55,000
Property and equipment	1,000	1,000
Share issue costs	4,000	5,000
Non-capital loss available for future periods	4,596,000	4,268,000
	4,651,000	4,329,000
Unrecognized deferred tax assets	(4,651,000)	(4,329,000)
Net deferred tax assets	$ -	$ -

25 | Page

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VISCOUNT MINING CORP.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended August 31, 2025 and 2024

(Expressed in Canadian Dollars)

13. Income Taxes (continued)

The significant components of the Company’s temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated statement of financial position are as follows:

	2025	Expiry Date Range	2024	Expiry Date Range
Temporary Differences	$		$
Exploration and evaluation assets	184,000	No expiry date	205,000	No expiry date
Property and equipment	3,000	No expiry date	3,000	No expiry date
Share issue costs	15,000	2045	20,000	2045
Non-capital loss available for future periods	17,020,000	2030 to 2045	15,808,000	2030 to 2044

Tax attributes are subject to review, and potential adjustment, by tax authorities.