What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-10-29 compared with 2024-10-29 · 32 added, 21 removed, 24 unchanged (69% of the section changed)

6 unchanged sentences

FOR THE YEAR ENDED JULY 31,

Accretion expense

Accretion expense (Note 10 and 12)

Directors' fees

Filing and regulatory

Foreign exchange loss

Foreign exchange (gain) loss

General and administrative

Geological, mineral, and prospect costs

Interest expense

Geological, mineral, and prospect costs (Note 6)

Interest expense (Note 10 and 12)

Professional fees

Promotion and shareholder communication

Share-based payments

Loss before other items

Gain on fair value adjustment on derivative liability

Share-based compensation (Note 13)

Gain on fair value adjustment on derivative liability (Note 11)

Gain on accounts payable settlement

Loss on sale of assets (Note 7)

Loss on note receivable (Note 6)

Loss on settlement of loans (Note 10)

Write-off of receivable

Net loss and comprehensive loss for the year

Basic and diluted loss per common share

Weighted average number of common shares outstanding (basic and diluted)

For the notes referenced above, please see our audited financial statements and the notes for the years ended July 31, 2025 and July 31, 2024, included below under Item 8.

Our operating expenses decreased during the year ended July 31, 2025 compared to the prior year primarily as a result of decreased activities by our Company.

These activities include salaries, filing and regulatory, general and administrative, professional fees, driven by the need for expenses related to Vested Rights and Use Permit application and hearings while lowering consulting costs relating to planning and researching our mineral properties, along with activities relating to raising funds in the recent private placements.

These activities include consulting, filing and regulatory, general and administrative, professional fees, driven by the need for expenses related to Vested Rights and Use Permit application and hearings while lowering consulting costs relating to planning and researching our mineral properties, along with activities relating to raising funds in the recent private placements.

As a result of the ongoing activities, significant expenses during the year ended July 31, 2025 include:

Increase in mineral exploration costs to $808,832 (2023 - $772,636) related to activities surrounding the Vested Rights and Use Permit application and hearings;

Decrease in share-based payments to $345,507 (2023 - $466,527) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants;

Decrease in consulting but increase professional fees $310,718 and $1,000,394 respectively (2023 - $565,885 and $757,769, respectively) due to the shift in strategy as the Company reviews its litigation options relating to its Vested Rights;

Increase in other income to $18,365 (2022 - $11,863) as there was more rental income for property use in 2024;

Decrease in mineral exploration costs to $96,520 (2024 - $808,832) related to activities surrounding the Vested Rights and Use Permit application and hearings;

Increase in share-based payments to $697,122 (2024 - $345,507) for the grant of options pursuant to our stock option plan to incentivize management and certain consultants;

Decrease in consulting and professional fees to $221,925 and $549,923 respectively (2024 - $310,718 and $1,000,394, respectively) as the Company incurred fewer advisory fees in 2025 compared to 2024 when the Company reviewed its litigation options relating to its Vested Rights;

Significant non-operating items include write down of the value of the drilling equipment (loss of $411,530;

2024 - $Nil);

note receivable sold at a discount to generate cash (loss of $155,727;

2024 - $Nil);

accounting loss recognized with the repayment of the loans in May 2025 on the value of the warrants recorded as loan issuance costs (loss of $312,939;

2024 - $Nil).

Liquidity and Capital Resources

As of July 31, 2024, the Company had $243,669 in cash, $894,638 in current assets, $5,155,398 in total assets, $2,661,598 in current liabilities and $2,777,728 in total liabilities, working capital deficit of $1,766,960 and an accumulated deficit of $30,234,617.

As of July 31, 2025, the Company had $2,783,348 in cash, $2,980,679 in current assets, $4,442,507 in total assets, $1,050,421 in current liabilities and $1,179,422 in total liabilities, working capital surplus of $1,930,258 and an accumulated deficit of $33,494,975.

During the year ended July 31, 2025, the Company used $1,169,386 in net cash on operating activities, compared to $2,213,199 in net cash on operating activities during the prior year.

The difference in net cash used in operating activities during the year was due to the difference between the gain of the revaluation adjustment of the derivative liability, share-based compensation for options granted during the period, and professional fees related to the Use Permit and Vested Rights petition.

During the year ended July 31, 2024, we used net cash of $Nil (2023 - $Nil) in investing activities for the Company.

During the year ended July 31, 2024, the Company received cash from financing activities of $1,698,598 (2023 - $2,762,832) related to the private placements during the year ended July 31, 2024.

The higher amount of net cash used in operating activities during the prior year was due mainly to higher professional fees and associated costs related to the Use Permit and Vested Rights petition.

During the year ended July 31, 2025, received net cash of $2,612,699 (2024 - $Nil) from investing activities of the Company (i.e.

sale of parcels of land).

During the year ended July 31, 2025, the Company received cash of $2,990,936 (2024 - $ 1,898,596) from financing activities related to the private placements.

Proceeds received from loans during the year ended July 31, 2025 were $500,000 (2024 - $Nil).

The cash paid by the Company to settle the outstanding loans during the year ended July 31, 2025 was $2,394,570 (2024 - $200,000).

Net cash flow received from financing activities was $1,096,366 during the year ended July 31, 2025 (2024 - $1,698,596).

The Company expects to operate at a loss for at least the next 12 months.

It has no agreements for additional financing and cannot provide any assurance that additional funding will be available to finance its operations on acceptable terms in order to enable it to carry out its business plan.

On October 24, 2025, the Company raised $7,000,000 through issuance of securities.

Based on working capital at year end, and subsequent equity financing of $7,000,000, management estimates that it does have sufficient funds to continue as a going concern.

There are no assurances that the Company will be able to complete further sales of its common stock or any other form of additional financing.

If the Company is unable to achieve the financing necessary to continue its plan of operations, then it will not be able to carry out any exploration work on the I-M Mine Property or the other properties in which it owns an interest and its business may fail.

As such, these material uncertainties cast a substantial doubt regarding the Company's ability to continue as a going concern.

Off-Balance Sheet Arrangements

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis