What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-04-15 compared with 2025-04-15 · 791 added, 449 removed, 170 unchanged (88% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

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characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.

The words “anticipate,”

“believe,” “continue,” “could,” “estimate,” “expect,” “intend,”

“may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,”

“should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words

does not mean that a statement is not forward-looking.

The forward-looking statements contained

or incorporated by reference in this annual report are based on our current expectations and beliefs concerning future developments and

their potential effects on us and speak only as of the date of each such statement.

There can be no assurance that future developments

affecting us will be those that we have anticipated.

These forward-looking statements involve a number of risks, uncertainties (some of

which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those

expressed or implied by these forward-looking statements.

These risks and uncertainties include, but are not limited to, those factors

described in Item 1A, “Risk Factors” and this Item 7 of this annual report.

Should one or more of these risks or uncertainties

materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these

forward-looking statements.

We undertake no obligation to update or revise any forward-looking statements, whether as a result of new

information, future events or otherwise, except as may be required under applicable securities laws.

“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”

“intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,”

“project,” “should,” “would” and similar expressions may identify forward-looking statements, but

the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained or incorporated

by reference in this annual report are based on our current expectations and beliefs concerning future developments and their potential

effects on us and speak only as of the date of each such statement.

There can be no assurance that future developments affecting us will

be those that we have anticipated.

These forward-looking statements involve a number of risks, uncertainties (some of which are beyond

our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied

by these forward-looking statements.

These risks and uncertainties include, but are not limited to, those factors described in Item 1A,

“Risk Factors” and this Item 7 of this annual report.

Should one or more of these risks or uncertainties materialize, or

should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking

We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future

events or otherwise, except as may be required under applicable securities laws.

The following discussion should be read in conjunction

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On November 20, 2014, the Company completed a listing process on the Canadian Securities Exchange (“CSE”).

that process, the Company acquired 100% of the members’ interests of Pinon Ridge Mining LLC (“PRM”), a Delaware limited liability

that process, the Company acquired 100% of the members’ interests of Pinon Ridge Mining LLC (“PRM”), a Delaware limited

liability company.

The transaction constituted a reverse takeover (“RTO”) of Western by PRM.

Subsequent to obtaining appropriate shareholder

approvals, the Company reconstituted its board of directors and senior management team.

Western is a Canadian domestic issuer and Canadian

reporting issuer.

Subsequent to obtaining appropriate

shareholder approvals, the Company reconstituted its board of directors and senior management team.

Western is a Canadian domestic issuer

and Canadian reporting issuer.

On August 18, 2014, the Company closed on the

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lands in Utah and Colorado, and all represent properties that have been previously mined for uranium to varying degrees in the past.

acquisition included the purchase of the Sunday Mine Complex.

The acquisition included the purchase of the Sunday Mine Complex.

The Sunday Mine Complex is located in western San Miguel County, Colorado.

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the Sunday mine, the Carnation mine, the St.

Jude mine, the West Sunday mine

and the Topaz Mine.

The operation of each of these mines requires a separate permit, and all such permits have been obtained by Western

and are currently valid.

In addition, each of the mines has good access to a paved highway, electric power to existing declines, office/storage/shop

and change buildings, and an extensive underground haulage development with several vent shafts complete with exhaust fans.

Mine Complex is the Company’s core resource property and in July 2021 was assigned “Active” status when mining operations

were restarted.

Jude mine, the West Sunday

mine and the Topaz Mine.

The operation of each of these mines requires a separate permit, and all such permits have been obtained by

Western and are currently valid.

Notably, for the Topaz Mine, which at the present time is permitted and is scheduled for reclamation,

the process is underway for it to be re-permitted.

In addition, each of the mines has good access to a paved highway, electric power

to existing declines, office/storage/shop and change buildings, and an extensive underground haulage development with several vent shafts

complete with exhaust fans.

The Sunday Mine Complex is the Company’s core resource property and in July 2021 was assigned “Active”

status when mining operations were restarted.

On September 16, 2015, Western completed its

acquisition of Black Range, an Australian company that was listed on the Australian Securities Exchange until the acquisition was

The acquisition terms were pursuant to a definitive Merger Implementation Agreement entered into between Western and

Pursuant to the agreement, Western acquired all of the issued shares of Black Range by way of Scheme of Arrangement

(“the Scheme”) under the Australian Corporation Act 2001 (Cth) (the “Black Range Transaction”), with Black

Range shareholders being issued common shares of Western on a 1 for 750 basis.

On August 25, 2015, the Scheme was approved by the

shareholders of Black Range, and on September 4, 2015, Black Range received approval by the Federal Court of Australia.

Western issued options to purchase Western common shares to certain employees, directors, and consultants.

Such stock options were

intended to replace Black Range stock options outstanding prior to the Black Range Transaction on the same 1 for 750 basis.

acquisition of Black Range, an Australian company that was listed on the Australian Securities Exchange until the acquisition was completed.

The acquisition terms were pursuant to a definitive Merger Implementation Agreement entered into between Western and Black Range.

to the agreement, Western acquired all of the issued shares of Black Range by way of Scheme of Arrangement (“the Scheme”)

under the Australian Corporation Act 2001 (Cth) (the “Black Range Transaction”), with Black Range shareholders being issued

common shares of Western on a 1 for 750 basis.

On August 25, 2015, the Scheme was approved by the shareholders of Black Range, and on

September 4, 2015, Black Range received approval by the Federal Court of Australia.

In addition, Western issued options to purchase Western

common shares to certain employees, directors, and consultants.

Such stock options were intended to replace Black Range stock options

outstanding prior to the Black Range Transaction on the same 1 for 750 basis.

Under United States Securities and Exchange Commission

(“Commission”) rules, the Black Range transaction triggered the Company being deemed a United States domestic issuer and losing

its foreign private issuer exemption.

On April 29, 2016, the Company filed a Form 10 registration statement with the Commission after

shifting its basis of accounting from IFRS to U.S.

(“Commission”) rules, the Black Range transaction triggered the Company being deemed a United States domestic issuer and

losing its foreign private issuer exemption.

On April 29, 2016, the Company filed a Form 10 registration statement with the Commission

after shifting its basis of accounting from IFRS to U.S.

On June 28, 2016, the Company’s registration statement became effective

and Western became a United States reporting issuer.

On June 30, 2023, Western re-qualified as a foreign private issuer

as that term is defined in Rule 3b-4(c) promulgated under the Exchange Act.

As a result, the Company may now utilize certain accommodations

made to foreign private issuers, including (1) an exemption from complying with the Commission’s proxy rules, (2) an exemption from

the Company’s insiders having to comply with the reporting and short-swing trading liability provisions of Section 16 under the

Exchange Act, (3) the ability to make periodic filings with the Commission on the Form 20-F and Form 6-K foreign issuer forms, and (4)

the ability to offer and sell unrestricted securities outside of the United States pursuant to Rule 903 of Regulation S.

The Company plans

to take advantage of these accommodations.

However, the Company currently has decided to voluntarily continue to file periodic reports

with the Commission using domestic issuer forms including filing annual reports on Form 10-K, quarterly reports on Form 10-Q and current

reports on Form 8-K.

On the subsequent measurement date, June 30, 2024, Western reconfirmed its qualification as a foreign private issuer.

On June 30, 2023, Western re-qualified as a foreign

private issuer as that term is defined in Rule 3b-4(c) promulgated under the Exchange Act.

As a result, the Company may now utilize certain

accommodations made to foreign private issuers, including (1) an exemption from complying with the Commission’s proxy rules, (2)

an exemption from the Company’s insiders having to comply with the reporting and short-swing trading liability provisions of Section

16 under the Exchange Act, (3) the ability to make periodic filings with the Commission on the Form 20-F and Form 6-K foreign issuer

forms, and (4) the ability to offer and sell unrestricted securities outside of the United States pursuant to Rule 903 of Regulation

The Company plans to take advantage of these accommodations.

However, the Company currently has decided to voluntarily continue to

file periodic reports with the Commission using domestic issuer forms including filing annual reports on Form 10-K, quarterly reports

on Form 10-Q and current reports on Form 8-K.

As of the subsequent measurement date, June 30, 2024, Western reconfirmed its qualification

as a foreign private issuer for periods ended through December 31, 2025.

The Company has registered offices at 5 Church

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on the OTCQX Best Market under the symbol “WSTRF”.

Its principal business activity is the acquisition and development of uranium

and vanadium resource properties in the states of Utah and Colorado in the United States of America (“United States”).

Its principal business activity is the acquisition and development of

uranium and vanadium resource properties in the states of Utah and Colorado in the United States of America (“United States”).

Recent Developments

Ore Purchase Agreement

On April 8, 2025, PRM entered into an Ore Purchase Agreement (the “Ore

Purchase Agreement”) with subsidiaries of Energy Fuels Inc.

(“Purchaser”).

The Ore Purchase Agreement is for a one year

period and provides for the delivery of up to 25,000 short tons of uranium bearing ore to the White Mesa Mill in Blanding, Utah.

make deliveries at its own cost and the purchase price per ton will be based upon the average grade of uranium within each lot, and other

qualifying conditions.

Within 30 days after each lot is closed, the Purchaser shall pay to PRM an 85% provisional payment calculated based

upon the sampled grade and an agreed upon pricing schedule.

Within 30 days after each lot is fed to processing, the Purchaser shall pay

to PRM a final settlement payment calculated based upon the assayed grade and the agreed upon pricing schedule, net of a royalty, pursuant

to a previously existing royalty agreement with the Purchaser.

Uranium Markets and Western Strategy

Between July 2024 and August 2025, the uranium term price was in the

$80.00 to $81.50 range until its rise to $83/lb in September 2025 and $85/lb in October 2025.

The uranium spot market has experienced

more volatility, peaking at $106/lb in January 2024, and declining into a 2025 trading range of $64/lb to $78/lb through August 2025.

In September 2025 and October 2025 spot prices rallied above $80/lb, before declining back into the 2025 trading range in November 2025.

This Fall 2025 rally was ignited in mid-September by President Trump and DOE Secretary Wright touting U.S.

nuclear power and the U.S.

domestic fuel cycle, which rallied uranium equity markets.

In January 2026, uranium spot prices spiked closing above $100/lb for 2 days

and above $90/lb for 5 days.

After this short lived rally was over spot prices declined and settled into the $80/lb range.

price trend is strong.

Over the five year period from 2020 to 2025, both spot and term prices have moved up from the $30/lb range to the

$80/lb range.

In 2024, Western responded to favorable market conditions by aggressively ramping up operations and expanding production

capacity primarily at its 100% owned Sunday Mine Complex.

While uranium spot prices weakened in late 2024, we had anticipated a recovery

in 2025, supported by the U.S.

ban on Russian uranium (effective 2028) and the Trump administration’s strong backing of nuclear

energy and domestic mining.

The Company’s interpretation of market signals was that uranium markets would stabilize at replacement

price levels.

However, given recent turbulence in global commodity and financial markets, along with geopolitical uncertainties, we have

shifted to a more conservative stance, increasingly focusing on cost control and strategic discipline.

We continued to observe capital

market volatility fueled by political and trade uncertainties related to the tariff situation initiated by the current U.S.

Administration

and more recently the war in Iran.

This conservative approach has been adopted to

reduce operational spending in the near-term.

The intent is to focus on the initiatives that bring long-term value to the Company:

the proposed Mustang mill and the development of nearby mines to supply this mill.

Western’s team remains confident that uranium

prices will become reflective of replacement cost levels and strong underlying market fundamentals.

While we are focusing on preparing

more of our mineral properties for active mining operations, we intend to utilize this conservative approach until there is a significant

and sustainable recovery in uranium markets.

Uranium Ridge Project

On October 8, 2025, Western, through its wholly

owned subsidiary, PRM, closed on the acquisition of a package of unpatented mineral lode claims (the “Claims”).

paid $250,000 for the acquisition, securing a 50% ownership interest in the area covered by historic drilling.

The Claims encompass a

drilled-out uranium-vanadium deposit situated on ~240 acres that is located on BLM land in Montrose County, Colorado.

As part of the

acquisition strategy, Western has also staked additional claims surrounding the property, adding 500 acres with significant exploration

potential to expand the historical resource.

The Company has named this resource property the Uranium Ridge Project (“Uranium Ridge”),

which is a combination of the acquired claims and the newly staked claims.

The 50% of mineral claims that are not owned by PRM continue

to be owned by Mr.

George Glasier, the Company’s CEO.

Glasier has indicated his willingness to make his personal interest available

to the Company on appropriate terms if the Company deems it to be desirable.

Uranium Ridge is located in close proximity to Western’s

proposed Mustang mineral processing plant site, which is being advanced as a key regional processing hub.

By securing nearby resources,

Western expects to reduce haulage costs, streamline logistics, and capture significant processing efficiencies, directly translating

into increased value for shareholders.

The team has begun the requisite permitting process, as we wait for the ground to firm-up post-winter.

Uranium Ridge is targeted for a confirmation and exploration drill program.

The objectives are to confirm the historic drilled-out resources

and expand the resource to the newly added 785 acres of claims acquired by staking.

Mustang Mineral Processing Plant

We are prioritizing the development of the Mustang Mineral Processing

Plant (Mustang) in Colorado due to its close proximity to the SMC and lower hauling costs in comparison to the Maverick Minerals Processing

Plant in Utah.

In preparing the new licensing and permitting application, Western expects to benefit from the prior site owner’s

completion of all phases of licensing and permitting of their Pinon Ridge Mill project.

This facility will be designed to recover uranium

and vanadium both from conventional materials mined from Company mines and materials produced by other mining companies.

After permitting

and construction, and subject to available financing, the processing of uranium and vanadium materials is targeted to commence in 2029.

The Colorado milling license that Western is currently seeking will incorporate Kinetic Separation via an amendment to the initial license

– as Western’s current plan is to submit a licensing application that is substantially identical to the application that was

used previously for the Pinon Ridge Mill (which did not include the Company’s Kinetic Separation technology).

Official baseline

data collection at Mustang began in December 2024 for water monitoring and January 2025 for air monitoring.

The required water monitoring

data collection has been completed and hydrology reporting is being prepared.

As the air monitoring equipment required repair, we will

need to continue to collect air sample data into 2Q 2026.

Results to date for both water and air quality is consistent with data collected

by the former owners.

During 2025, Western sourced digital versions of the prior Pinon Ridge Mill license application and supporting data.

This will result in substantial savings in the compilation of the radioactive materials license application.

The team will begin preparing

the radioactive materials license application in 2Q 2026 targeting submission by October 2026.

Mustang’s completion is critical

for in-house yellowcake production.

Mustang Mineral Mill Site Acquisition

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Colorado, where a uranium processing mill was previously licensed but never constructed.

The transaction was accounted for as a purchase

The Company assumed an obligation to an unrelated third party to remit a royalty based on the volume of minerals processed

through any mineral processing plant located on the property.

The acquisition becomes the second property that

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one or more uranium and vanadium processing facilities to process production from its resource properties in Colorado and Utah.

The Company assumed an obligation to an unrelated

third party to remit a royalty based on the volume of minerals processed through any mineral processing plant located on the property.

George Glasier, the President, CEO and a director

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The Company’s Board of Directors established an

independent committee of the Board comprised of directors who were not considered to have an interest in the transaction, and the independent

committee oversaw the negotiation and approved the entering into the agreement on behalf of the Company.

The total purchase price of PRC was $1.98 million, which consisted

of an aggregate of $829,167 in payments to former PRC shareholders for their equity interests and outstanding loans made to PRC and related

accrued interest and a $1,148,125 payment for principal and interest to a third party in satisfaction of an assumed liability of Mustang.

For the 53% ownership of PRC, $414,584 was paid to George Glasier and $24,875 was paid to an affiliate of Andrew Wilder.

The transaction was accounted for as a purchase

Mustang Mineral Processing Plant

Our current plans call for the permitting and construction of a mineral

processing plant at its newly acquired site in Colorado.

Western expects to benefit from the prior site owner’s completion of all

phases of licensing and permitting of their Pinon Ridge Mill project.

The Company’s plans are to develop its initial mill at the

Colorado location, which is much closer to the Sunday Mine Complex.

This mill is expected to have a cost of approximately $75 million

and is planned to start-up in 2029.

This facility will be designed to recover uranium and vanadium both from conventional materials mined

from Company mines and materials produced by other mining companies.

The processing plant will utilize the latest processing technology,

including Western’s patented Kinetic Separation process.

These technology advancements will result in lower overall capital and

processing costs.

After permitting and construction, and subject to available financing, the processing of uranium and vanadium materials

is targeted to commence in 2029.

independent committee of the Board comprised of directors who were not considered to have an interest in the transaction.

The independent

committee supervised the negotiation of and approved Western’s entry into the PRC agreement.

The total purchase price of PRC was $1.98 million,

which consisted of an aggregate of $829,167 in payments to former PRC shareholders for their equity interests and outstanding loans made

to PRC and related accrued interest and a $1,148,125 payment for principal and interest to a third party in satisfaction of an assumed

liability of Mustang.

For the 53% ownership of PRC, $414,584 was paid to George Glasier and $24,875 was paid to an affiliate of Andrew

Sunday Mine Complex Project

In response to elevated uranium prices during

early 2024, Western spent 2024 ramping up operations to achieve its annualized production target of 1 million pounds of uranium and 6

million pounds of vanadium.

Following the expansion of infrastructure deeper into the West Sunday Mine, the mining teams commenced driving

a drift to the Leonard & Clark deposit and the drilling teams continued to define additional mining areas utilizing underground horizontal

During the third quarter of 2024, the operations team moved to an area of the Sunday Mine where the last operator ceased production.

Existing underground workings were rehabilitated and utilities were installed in a large stope area close to the former production face.

With uranium pricing still at suppressed levels,

there has been a corresponding reduction in mining operations in 2025.

The development of the Sunday Mine Complex became a secondary

focus after the first quarter of 2025 as the mining team alternated between mine development and hauling / delivery activities related

to the Ore Purchase Agreement.

During 2025, Western extended work in three

areas of the GMG deposit and advanced the Leonard & Clark decline.

Underground operations were placed on temporary standby

during Q1 2026, and equipment was secured and prepared for storage.

The mining operations team is continuing the completion of

aboveground surface projects.

When we next receive market signals to scale-up operations, the next underground projects will focus

on the development of new additional Sunday Mine Complex areas which have indicated defined uranium mineralization to further expand

Sunday Mine Complex Drilling Program

The first phase of the horizontal underground

drilling program was successfully completed.

The program employed rigorous quality control, including twinning holes, assaying, and drilling

core samples.

The program included 20,366 feet of drilling plus an additional 1,655 feet of core drilling.

Half of these core holes targeted

mineralized faces identified during underground development, while the other half confirmed previously identified ore zones.

and geological logging also mapped major faults and weak ground conditions.

The program confirmed five mineralized pockets in the GMG

drift and outlined the deposit’s overall shape and trend.

The horizontal drilling program defined mineralized deposits but did

not establish deposit thickness.

A second program phase would necessitate surface/vertical drilling to capture thickness data to update

geologic resource estimates.

Having successfully completed the initiatives at the Sunday Mine Complex, we gradually reduced staffing

through attrition, consultant cutbacks, selective layoffs, and redeployment.

These efficiency measures have been taken to align the workforce

with Company capitalization levels.

During mine development activities, we have attempted to drift around mineralization, leaving the

seam faces for quick access during the next period of full production.

Additional Projects To Expand Production

Looking forward, we are considering opportunities

across our property portfolio to increase production capacity that are less capital intensive.

These include re-permitting the Topaz

Mine, rehabilitating the Sage Mine, reassessing the Van 4 Mine for decline/portal access rather than utilizing the previously reclaimed

shaft, and additional development of the Rimrock JV mines.

The project to advance permitting of the San Rafael Project is included in

this group, and discussed in more detail below.

Progress has been made on each of these initiatives.

At the Topaz Mine, a new monitor

well has been drilled and is actively being flushed in preparation for the delivery of new monitoring equipment.

Once installed, we will

commence the water quality sampling program.

At the Sage Mine, we have now received both state and BLM approvals to commence limited

work at this mine.

For the Van 4, the team is preparing a vertical drill rig to begin a drilling program with both development and exploration/

resource expansion objectives.

The San Rafael Uranium Project, located in Emery

County, Utah, is being developed as the Company’s second production facility.

During the second quarter 2024, Western submitted

a Notice of Intent to the U.S.

Bureau of Land Management (“BLM”) that was approved for a mineral and groundwater exploration

During the third quarter of 2024, Utah’s Division of Oil, Gas & Mining gave its approval of the exploration permit

application and the Company posted a $61,403 financial guarantee of reclamation costs with the BLM.

Currently all permits have been received

that are needed for the drilling of monitor wells and the sinking of a mine shaft.

When site work commences, following the completion

of repairs to access roads, the phase 1 drilling program can begin.

Initially, groundwater monitoring wells will be installed at five

drilling locations, reaching depths of approximately 1,000 feet.

During the borehole completion process, mineralization will also be assessed

and confirmed against historical drill data.

This project will provide the baseline data needed for permitting application submission.

Ore Purchase Agreement

On April 8, 2025, PRM entered into an Ore Purchase

Agreement (the “Ore Purchase Agreement”) with subsidiaries of Energy Fuels Inc.

(“Purchaser”).

The Ore Purchase

Agreement is for a one year period and provides for the delivery of up to 25,000 short tons of uranium bearing ore to the White Mesa

Mill in Blanding, Utah.

PRM shall make deliveries at its own cost and the purchase price per ton will be based upon the average grade

of uranium of each lot, and other qualifying conditions.

Within 30 days after each lot is closed, Purchaser shall pay to PRM an 85% provisional

payment (“Provisional Payment”) calculated based upon the sampled grade and an agreed upon pricing schedule.

Within 30 days

after each lot is fed to processing, the Purchaser shall pay to PRM a final settlement payment calculated based upon the assayed grade

and the agreed upon pricing schedule, net of a royalty, pursuant to a previously existing royalty agreement with the Purchaser.

During April and May 2025, the Company focused on the operational preparations

required to begin hauling material.

Also during this period, an additional ore pad was constructed, equipment and vehicles were prepared,

and new equipment was purchased.

The Company commenced deliveries in late June 2025 and during this period through September, Western

delivered approximately 1,600 tons of mined material from the Sunday Mine Complex to the White Mesa Mill.

Hauling capacity proved a limiting

factor as all deliveries were completed by Western employees, alternating driving duties, utilizing a single Company truck to make ~20

ton deliveries.

Most of the uranium-bearing feedstock utilized to make deliveries under the Ore Purchase Agreement originated from underground

stockpiled materials from historical work projects.

which was supplemented by a small amount of new production from the Sunday Mine Complex.

During the year ended December 31, 2025, we recognized revenue from the sale of ore, net of royalty, of $297,285.

As of December 31, 2025,

included within other current assets on the consolidated balance sheet were receivables in the amount of $45,503 due from Purchaser.

the end of September 2025, Western made the decision to pause additional future deliveries in favor of focusing the mining staff on development

projects that can increase future feedstock quantities for the Mustang Mineral Processing Plant.

Infrastructure

Western expanded its fleet of mining equipment and vehicles in 2023/2024

by purchasing discounted used equipment and reconditioning it with an in-house team of mechanics.

This approach has the advantage of putting

equipment into reliable high-volume usage condition at a fraction of the cost, while mitigating supply chain issues.

The Company has sought

cost savings in this area by limiting new purchases in 2025 and opting to rehabilitate the remainder of the fleet over a longer duration.

Most purchases made in 2025 were required for hauling uranium-bearing material to the White Mesa Mill.

Maverick Minerals Processing Plant

The development of the Maverick Minerals Processing

Plant in Green River, Utah, has advanced since the land package acquisition was completed in 2023.

Subsequently, a full team of consulting

firms was chosen and engaged for their expertise in engineering / mill design, permit preparation, environmental, hydrology, and air quality.

The project design and permitting activities include site evaluation work, compilation of a preliminary plant and property site plan,

baseline data collection, plant and animal studies and a cultural survey.

Additional consulting commitments were made to advance the licensing

and development with Precision Systems Engineering (“PSE”), a leading engineering and design consulting firm headquartered

in Sandy, Utah.

The next steps were for PSE to complete a preliminary engineering design and cost estimate for a 500 ton per day mill

and the installation of monitor wells.

However, additional work has been deferred for Western to reassess its design strategy now that

it has purchased a previously licensed mill site in Colorado (Mustang Mineral Processing Plant, formerly the Pinon Ridge Mill).

As processing

facility development efforts have been shifted, some of the Maverick site infrastructure has been relocated to the Mustang site, and notably

the preliminary engineering work is also transferable.

The Maverick site is located in close proximity (approximately 4 miles) to the

San Rafael Uranium Project;

however, it is approximately 170 miles from the Sunday Mine Complex.

We are prioritizing development of the

Mustang site, given its close proximity to the Sunday Mine Complex, lower hauling costs, and past licensing advances over the Maverick

Bullen Property (Weld County)

In 2017, the Company entered into an oil and gas

lease that became effective with respect to minerals and mineral rights owned by the Company of approximately 160 surface acres of the

Company’s mining property in Colorado.

As consideration for entering into the lease, the lessee has agreed to pay the Company a

royalty from the lessee’s revenue attributed to oil and gas produced, saved, and sold attributable to the net mineral interest.

In 2017, the Company entered into an oil and

gas lease that became effective with respect to minerals and mineral rights owned by the Company of approximately 160 surface acres of

the Company’s mining property in Colorado.

As consideration for entering into the lease, the lessee has agreed to pay the Company

a royalty from the lessee’s revenue attributed to oil and gas produced, saved, and sold attributable to the net mineral interest.

The Company has also received cash payments from the lessee related to the easement that the Company is recognizing incrementally over

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production by August 2022.

All sixteen (16) wells remain in production and monthly royalty payments will be ongoing in perpetuity as long

as oil and/or gas are produced from the pooled unit containing these sixteen (16) wells.

All sixteen (16) wells remain in production and monthly royalty payments will be ongoing in perpetuity as

long as oil and/or gas are produced from the pooled unit containing these sixteen (16) wells.

During the years ended December 31, 2025 and

2024, we recognized aggregate revenue of $128,163 and $183,803, respectively, under these oil and gas lease arrangements.

ended December 31, 2025, oil and gas royalties declined due to lower volumes attributable to production decline curves.

Kinetic Separation Licensing

On December 1, 2016 a determination was made by

the CDPHE considering the NRC Advisory Opinion, the Colorado public meeting process, and the CDPHE regulatory and evaluation framework.

On December 1, 2016 a determination was made

by the CDPHE considering the NRC Advisory Opinion, the Colorado public meeting process, and the CDPHE regulatory and evaluation framework.

This determination stated that the proposed Kinetic Separation operations at the Sunday Mine by Black Range Minerals must be regulated

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framework, but as a result of this determination the Company is now able to deploy Kinetic Separation under a milling license.

milling license that Western is currently seeking will likely incorporate Kinetic Separation via an amendment to the initial license –

as Western’s current plan is to submit a licensing application that is substantially identical to the application that was used

previously for the Pinon Ridge Mill (which did not include the Company’s Kinetic Separation technology).

Stockpiled Mined Materials Inventory

From December 2021 through March 2022, 3,140 tons of uranium/vanadium

material was mined from the Sunday Mine Complex.

The mining contractor calculated uranium grades based upon scintillometer sampling of

each 10-ton truckload and vanadium quantities were derived by applying the 6:1 historical ratio.

The estimated stockpiled inventory is

50,289 pounds of uranium and 301,736 pounds of vanadium.

The value of this stockpile is not reflected as an asset on the balance sheet

as the costs to produce the stockpiled inventory was expensed in accordance with Regulation SK-1300.

The in-house mining team stockpiled

limited quantities of additional mined material in the current year.

It is Western’s intent to sell some of this stockpiled material

to Energy Fuels under the Ore Purchase Agreement.

November 2024 Private Placement

On November 20, 2024, the Company closed a private

placement of 4,142,906 units at a price of $0.94 (CAD $1.32) per unit.

The aggregate gross proceeds raised in the private placement amounted

to $3,897,166 (CAD $5,468,636) and proceeds net of issuance costs were $3,546,870 (CAD $4,975,966).

Each unit is comprised of one common

share of Western and one common share purchase warrant.

Each warrant is exercisable into one common share at a price of $1.27 (CAD $1.78)

per share for a period of four years following the closing date of the private placement.

Incentive Stock Option Plan

The Company maintains an Incentive Stock Option

Plan (the “Plan”) that permits the granting of stock options as incentive compensation.

Stock Option Grants

On December 20, 2023, the Board of Directors

granted options under the Plan for the purchase of an aggregate of 1,525,000 common shares to individuals consisting of directors

and officers of the Company.

Each of these options have a term which ends five years from the vesting date, an exercise price of

$1.20 (CAD $1.60 as of December 31, 2023) and vest equally in thirds on January 31, 2024, July 31, 2024 and January 31, 2025.

On July 14, 2024, the Board of Directors granted

an option under the Plan for the purchase of an aggregate of 100,000 common shares to a director of the Company.

This option has a term

which ends five years from the vesting date, an exercise price of $1.47 (CAD $2.00 as of July 14, 2024) and vests one half on each of

July 31, 2024 and January 31, 2025.

On November 24, 2024, the Board of Directors granted options under

the Plan for the purchase of an aggregate of 1,375,000 common shares to individuals consisting of directors and officers of the Company.

Each of these options have a term which ends five years from the vesting date, an exercise price of $0.94 (CAD $1.32 as of November 29,

2024) and vest equally in thirds on January 31, 2025, July 31, 2025 and January 31, 2026.

Biden-Harris, Trump

1.0 and Trump 2.0 Administration Initiatives

2025 there was a large development for Kinetic Separation which affects its process deployment.

In September 2025, the NRC approved a

license for the owner of the Ablation patents that allows the application of their version of Ablation technology for uranium mine waste

remediation and issued a first-of-its-kind multi-site Service Provider License.

This option is available to Western, should we choose

to pursue it.

The Colorado milling license that Western is currently seeking will likely incorporate Kinetic Separation via an amendment

to the initial license – as Western’s current plan is to submit a licensing application that is substantially identical to

the application that was used previously for the Pinon Ridge Mill (which did not include the Company’s Kinetic Separation technology).

Biden-Harris, Trump 1.0 and Trump 2.0 Administration

During the first Trump Administration, the U.S.

government focused

on market distortions caused by foreign state-owned enterprises and the economic and geopolitical influence lost by allowing Russia and

China to take the global lead in nuclear power.

In support of the world’s largest nuclear reactor fleet, the U.S.

has implemented

some of the recommendations of the Nuclear Fuel Working Group which followed the uranium Section 232 investigation.

The Russia/Ukraine

war has highlighted the nuclear fuel supply chain risks and the geopolitical risks of dependence on the direct and indirect sourcing of

nuclear fuel from state owned enterprises in Russia and former Soviet Union republics.

This led to the implementation of the Uranium Reserve

Program where the U.S.

Department of Energy (“DOE”) purchased 1,100,000 lbs of U.S.

domestic origin uranium in the first

quarter of 2023.

government focused on market distortions caused by foreign state-owned enterprises and the economic and geopolitical influence lost by

allowing Russia and China to take the global lead in nuclear power.

In support of the world’s largest civilian nuclear reactor

fleet, the U.S.

has implemented some of the recommendations of the Nuclear Fuel Working Group which followed the uranium Section 232

investigation.

This led to the implementation of the Uranium Reserve Program and the American Assured Fuel Supply program.

Subsequently,

the Russia/Ukraine war has highlighted the nuclear fuel supply chain risks and the geopolitical risks of dependence on the direct and

indirect sourcing of nuclear fuel from state owned enterprises in Russia and former Soviet Union republics.

Upon taking office, the Biden-Harris Administration

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change initiatives.

The Administration continued to advance a national clean energy standard.

utilities were expected to be required

to produce an increasing proportion of electricity generation from clean energy power sources.

On August 16, 2022, the Inflation Reduction

Act was signed into law authorizing governmental investments of approximately $369 billion in climate and energy, a portion of which would

The Administration worked to advance a national clean energy standard.

In August 2022, the Inflation Reduction Act

was signed into law authorizing governmental investments of approximately $369 billion in climate and energy, a portion of which would

benefit the U.S.

domestic nuclear industry and battery technologies.

On November 5, 2024, the United States held a highly contested Presidential

election between Republicans (Trump-Vance) and Democrats (Harris-Walz).

The Trump-Vance Republican ticket won, returning former President

Donald Trump to the Presidency on January 20, 2025.

In addition, Republicans have achieved Congressional majorities in both the

Senate and House of Representatives.

As a result, President Trump’s legislative priorities will likely face less resistance in Congress.

Currently, nuclear energy enjoys bipartisan support.

With the change in Presidential Administrations, we are already observing the climate

change and clean energy initiatives of the Biden-Harris Administration being de-emphasized.

In his first day in office, President Trump

signed Executive Orders declaring a National Energy Emergency and a U.S.

withdrawal from the Paris Climate Agreement for a second time.

The new Administration is seeking a reduction in the federal government’s size and regulatory power, and the newly-established Department

of Government Efficiency (DOGE) has implemented workforce layoffs with the goal of a federal government headcount reduction.

14, 2025, President Trump signed an Executive Order creating the National Energy Dominance Council.

On March 20, 2025 to boost domestic

production of critical minerals and reduce reliance on foreign imports, President Trump signed an Executive Order titled “Immediate

Measures to Increase American Mineral Production.” On April 9, 2025, President Trump signed an Executive Order entitled “Zero-based

Regulatory Budgeting to Unleash American Energy” to reduce costs on energy production by requiring conditional sunset dates for

However, these positive developments for domestic energy have been overshadowed by the announcements of U.S.

reciprocal tariffs on the U.S.’s largest trading partners.

Tariffs have been implicated as the driver of volatility across global

capital markets.

Subsequently, President Trump authorized a 90-day pause on reciprocal tariffs and instead implemented a flat 10% tariff

while the pause is in effect.

This action calmed markets.

Most countries benefited from this pause;

however, it was implemented in parallel

with an increase on Chinese tariffs, and thus escalated a U.S.

– China trade war.

In November 2024, the United States held a highly

contested Presidential election between Republicans (Trump-Vance) and Democrats (Harris-Walz).

The Trump-Vance Republican ticket won,

returning former President Donald Trump to the Presidency.

Republicans also achieved Congressional majorities in both the Senate

and House of Representatives.

Nuclear energy now enjoys bipartisan support.

However, with the change in Presidential Administrations,

the Biden emphasis on climate change and clean energy initiatives was replaced by Trump pro-energy initiatives.

In his first day in office,

President Trump signed Executive Orders declaring a National Energy Emergency and a U.S.

withdrawal from the Paris Climate Agreement

for a second time.

The new administration is seeking a reduction in the federal government’s size and regulatory power;

this is likely to expedite the permitting and development of energy resource projects.

The Trump Administration has put forth multiple

measures that are very positive for U.S.

domestic energy and mining and for Western.

On February 14, 2025, President Trump signed an

Executive Order creating the National Energy Dominance Council.

On March 20, 2025, to boost domestic production of critical minerals

and reduce reliance on foreign imports, President Trump signed an Executive Order titled “Immediate Measures to Increase American

Mineral Production.” On April 9, 2025, President Trump signed an Executive Order entitled “Zero-based Regulatory Budgeting

to Unleash American Energy” to reduce costs on energy production by requiring conditional sunset dates for regulations.

April 15, 2025, an Executive Order was released entitled “Ensuring National Security and Economic Resilience through Section 232

Actions on Processed Critical Minerals and Derivative Products”.

The Department of the Interior followed on April 23, 2025, by

implementing emergency permitting procedures to strengthen domestic energy supply.

In April / May 2025, in response to President Trump’s

earlier March 20, 2025 Executive Order, the Federal Permitting Improvement Steering Council announced the first two waves of critical

mineral production projects selected to benefit from expedited permitting;

the second included two uranium projects.

On May 23, 2025,

President Trump signed four Executive Orders specific to boosting the U.S.

domestic nuclear fuel cycle.

This incited a strong uranium

mining stock rally the following day.

Since taking office, President Trump has signed no fewer than 10 Executive Orders to boost the

energy sector that we believe to be directly or indirectly beneficial to nuclear and/or uranium mining industries.

On November 7, 2025

Geological Survey published the final 2025 List of Critical Minerals, and uranium was added to the list.

The Trump administration

is expanding the list amid efforts to boost domestic mining and cut reliance on imports for those minerals it deems essential for the

economy and national security.

As a result, uranium projects qualify increasingly for federal incentives, national stockpiling,

and priority research.

During August 2025, DOE’s Office of Nuclear Energy established

the Defense Production Act (DPA) Consortium that will seek participation by U.S.

companies through voluntary agreements.

It was announced

that “Under the DPA Consortium, voluntary agreements will allow industry consultation to develop plans of action to ensure that

the nuclear fuel supply chain capacity for mining and milling, conversion, enrichment, deconversion, fabrication, recycling and reprocessing

is available to enable the continued reliable operation of the nation’s reactors.” The first meeting of the DPA Consortium

was held on October 23, 2025 and the process is ongoing.

The DOE Office of Nuclear Energy has organized industry-specific committees to

focus on developing action plans to increase domestic capacity for mining, conversion, and enrichment to reduce reliance on foreign fuel

Western is a member of the Mining & Milling Committee.

United States Ban of Russian Uranium due

to Russian Invasion of Ukraine

In response to Russia’s war in Ukraine,

legislature passed the Prohibiting Russian Uranium Imports Act (H.R.

1042) to ban Russian uranium imports into the United States.

Unanimous passage in April 2024 by the U.S.

Senate followed the U.S.

House of Representatives’ passage of the bill in December

Subsequently, on May 13, 2024, President Biden signed this legislation into law.

The ban became effective 90 days after its enactment

on August 11, 2024 and is being phased in under Department of Energy conditional waivers before becoming a complete ban on January 1,

Importantly, the enactment of a Russian ban releases funding to support the American nuclear supply chain.

This funding was deployed

by the DOE under a new program called the Low-Enriched Uranium (LEU) – Enrichment Acquisition.

The United States has the world’s

largest civilian nuclear reactor fleet, and it has now taken steps to reduce its reliance on state-sponsored Russian nuclear fuel.

In November 2024, in response to the U.S.

on Russian uranium imports, Russia imposed a counter restriction on the export of enriched uranium to the United States.

This was designed

to create maximum uncertainty through its implementation on a shipment-by-shipment basis.

Also in December 2024, Russia’s national

nuclear company sold a 49% minority stake in a joint venture in a Kazakhstan uranium mine to a Chinese state-owned company.

It was reported

that this was done because of difficulties selling uranium to European or North American buyers due to sanctions recently imposed upon

The war in Ukraine is ongoing and it is unclear

at this time when and how it will end but the parties have commenced negotiations under the guidance of the Trump Administration.

the early days of the new administration, President Trump appeared to be more open toward Russia’s interests, which caused concern

from traditional European allies.

Recently, the Trump’s Administration position regarding the war in Ukraine has become more balanced.

The earlier embrace of Russia negatively impacted the prices of uranium equities and physical uranium commodities during much of 2025.

Nuclear Fuel and Uranium Market Conditions

During the year ended December 31, 2024, the

spot uranium price decreased $18 from $91 to ~$73.

Notably, the long-term price increased from $68 to ~$81 during a period of rising

conversion and enrichment services prices.

However, this follows an extremely strong period in the market where spot uranium prices

have reacted to supply/demand constraints and geopolitical risks.

Since January 2024, spot uranium had a slow decline from a high of

$100/lb level to $64/lb level at the end of March 2025.

The events of 2022 have set in motion uranium market and nuclear fuel

opportunities for the next decade and beyond.

There are positive catalysts across multiple levels of the nuclear fuel and uranium

The uranium term price was in the $80.00 to $81.50 range between July

2024 and August 2025, until its rise to $83/lb in September 2025 and $85/lb in October 2025.

The uranium spot market has experienced more

volatility, peaking at $106/lb in January 2024, and declining into a 2025 trading range of $64/lb to $78/lb through August 2025.

2025 and October 2025 spot prices rallied above $80/lb, before declining back into the 2025 trading range in November 2025.

2026, uranium spot prices spiked closing above $100/lb for 2 days and above $90/lb for 5 days.

After this short lived rally was over spot

prices declined and settled into the $80/lb range.

The uranium price trend is strong.

Over the five year period from 2020 to 2025, both

spot and term prices have moved up from the $30/lb range to the $80/lb range.

In 2023/2024, spot uranium prices reacted to supply/demand

constraints and geopolitical risks.

Positive catalysts across multiple levels of the nuclear fuel and uranium markets have set in motion

uranium market and nuclear fuel opportunities for the next decade and beyond.

Underlying fundamentals are the strongest in decades.

This is attributable to multiple factors, including climate change,

energy security, supply chain and energy scarcity initiatives.

The supply/demand imbalance has flipped from a market with excess

supply into a market with excess future demand.

With the reduced availability of secondary supplies, utilities have begun adding

multi-year contracts with mining companies for primary supply.

The drivers expanding the demand for nuclear fuel include non-nuclear

nations adding nuclear power generation, nuclear nations expanding fleets and/or extending lives of existing reactors, idled nuclear

reactors being redeployed, the reversal of phase-outs and shutdowns, and the deployment of advanced reactors / SMRs.

challenge is in meeting increasing demand simultaneously with supply constraints from the world’s largest suppliers.

believe uranium equity prices will continue to strengthen and reflect the underlying positive fundamentals in the nuclear/uranium

is attributable to multiple factors, including climate change, energy security, supply chain and energy scarcity initiatives.

The supply/demand

imbalance has flipped from a market with excess supply into a market with excess future demand.

With the reduced availability of secondary

supplies, utilities have begun adding multi-year contracts with mining companies for primary supply.

The drivers expanding the demand

for nuclear fuel include non-nuclear nations adding nuclear power generation, nuclear nations expanding fleets and/or extending lives

of existing reactors, idled nuclear reactors being redeployed, the reversal of phase-outs and shutdowns, and the deployment of advanced

reactors / SMRs.

However, the challenge is in meeting increasing demand simultaneously with supply constraints from the world’s

largest suppliers.

In spite of all these favorable attributes, spot uranium prices have declined in 2025 versus 2024 levels, as have the

equities of junior uranium miners.

We anticipate that both will rebound to reflect the underlying positive fundamentals in the nuclear/uranium

Multiple market analysts have flagged low availability of mobile secondary inventories.

We believe the continued draw down

of inventories to be a market catalyst for uranium prices.

We believe the continued draw down of

inventories to be a market catalyst for uranium prices.

Positive nuclear energy news has continued to

highlight the global growth of future nuclear electricity generation which will drive increased nuclear fuel demand.

In terms of future

supply, utility contracting has continued into 2024, and some uranium mining companies are moving toward restarting production.

due to the lead time needed for future uranium production, we are entering a phase where the supply-demand fundamentals are in a deep

multi-year structural supply deficit.

The future is not clear as we believe some miners with available near-term production are waiting

for higher price levels and/or project funding before making full start-up commitments.

Utilities are also deferring contracting to understand

how regulations and geopolitics will modify their future access to Russian uranium, conversion and enrichment services.

In the second quarter of 2024, investors began

purchasing nuclear and uranium equities as a means to create long exposure for their positive view on Artificial Intelligence (AI), due

to the vast energy requirements of data centers.

Recent transactions have been announced as tech giants Microsoft, Amazon, and Google

have sought deals to source nuclear power for their data centers from full scale reactors and SMRs.

Microsoft most prominently signed

an agreement with Constellation Energy to restart a Three Mile Island reactor in Pennsylvania and purchase 100% of the power generated

for two decades.

Nuclear Fuel Supply Chain Concentration

However, due to

the lead time needed for future uranium production, we are entering a phase where the supply-demand fundamentals are in a deep multi-year

structural supply deficit.

The future is not clear as we believe some miners, like ourselves, with available near-term production are

waiting for higher price levels and/or project funding before making full start-up commitments.

Utilities have also deferred contracting

to understand how regulations and geopolitics will modify their future access to Russian uranium, conversion and enrichment services.

In the second quarter of 2024, investors began purchasing nuclear and

uranium equities as a means to create long exposure for their positive view on Artificial Intelligence (AI), due to the vast energy requirements

of data centers.

Many of those investors reversed their positions and began to sell these nuclear and uranium equities in the fourth quarter

of 2024 and in the first quarter of 2025, and the nuclear and uranium equities that initially benefited saw a price reversal.

this investment thesis increased investment in nuclear and uranium.

With the agreements signed between tech companies that sponsor AI

data centers and the nuclear industry, these vast power requirements have become viewed by the market as a significant new long-term demand

driver for nuclear power as the best source of stable/reliable baseload power.

Nuclear Fuel Supply

Chain Concentration Risks

Russia’s invasion of Ukraine and the ensuing

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and enrichment are being addressed slowly by governments as alternative suppliers are not currently available.

Both Urenco and Orano have

announced that they will invest to expand their uranium enrichment capacity respectively in the United States and France, which represents

a shift away from Russia.

Both Urenco and Orano

have announced that they will invest to expand their uranium enrichment capacity respectively in the United States and France, which

represents a shift away from Russia.

Utilities are demonstrating their desire for increased security of their nuclear fuel supply chains.

is also a concern because the world’s largest uranium producing country has an unguarded and the second longest continuous land

border in the world shared with Russia.

Kazakhstan is also a concern because the world’s largest uranium producing country has an unguarded and the second longest continuous

land border in the world shared with Russia.

The potential exists for Russia to exert influence over Kazakhstan.

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has put large long-term contracts in place with China.

This supply is needed for China to fulfill its 15 year plan to deploy 150 new nuclear

This supply is needed for China to fulfill its 15 year plan to deploy 150 new

nuclear reactors.

China National Nuclear Corp.

(CNNC) has recently opened a uranium trading hub /warehouse facility, on the China / Kazakhstan

border, with the capacity to store 60 million pounds of uranium.

It has become evident that the nuclear fuel supply chain has become increasingly

concentrated and interconnected in this very small area of the world.

Expanding Kazakhstan uranium exports to Russia and China significantly

reduces future supply for Western nuclear fuel buyers.

(CNNC) has recently opened a uranium trading hub and warehouse facility, on the China

/ Kazakhstan border, with the capacity to store 60 million pounds of uranium.

It has become evident that the nuclear fuel supply chain

has become increasingly concentrated and interconnected in this very small area of the world.

Expanding Kazakhstan uranium exports to

Russia and China significantly reduces future supply for Western nuclear fuel buyers.

In July 2023, the government of Niger was overthrown

by its military.

This is significant because the new regime is opposed to Western interests and this landlocked West African country holds

the 7th largest uranium resource in the world and was producing about 5% of global production.

The conflict has an anti-French sentiment,

and the Junta has initiated multiple actions that are counter to French interests.

Most importantly, Niger’s Junta has threatened

the export of uranium to France which has serious implications because France acquires 20% of its natural uranium from Niger.

to the French evacuating/ being expelled from Niger, the U.S.

This is significant because the new regime is opposed to Western interests and this landlocked West African country

holds the 7th largest uranium resource in the world and was producing about 5% of global production.

The conflict has an anti-French

sentiment, and the Junta has initiated multiple actions that are counter to French interests.

Most importantly, Niger’s Junta has

threatened the export of uranium to France which has serious implications because France acquires 20% of its natural uranium from Niger.

In addition to the French evacuating/ being expelled from Niger, the U.S.

military also departed the country.

The Junta is utilizing Russian military

support as a replacement.

In addition, the Niger government has revoked operating permits from foreign uranium companies, including Orano

in June 2024 and Goviex in July 2024.

In November 2024, Orano further reported that it had lost operational control, to authorities in

Niger, of another of its uranium mines.

This mine was in production, but had been impacted by export restrictions imposed by the Junta.

During October 2023, geopolitical instabilities spread further to the

Middle East after a Hamas attack on Israel triggered a counterattack by Israel on the Gaza Strip.

The Israel-Hamas hostilities have escalated

over the Summer of 2024 and then spread to other countries in the Middle East.

At the beginning of 2025, Israel and Hamas agreed to a

ceasefire which ended in March 2025;

the hostilities resumed in March and it’s not clear when and if the combatants will be able

to negotiate a new ceasefire or an end to military actions.

This additional hot spot further increases volatility in the world and destabilizes

the Middle East region that is highly influential on global energy prices.

The Junta is utilizing

Russian military support as a replacement.

In addition, the Niger government has revoked operating permits from foreign uranium companies,

including Orano in June 2024 and Goviex in July 2024.

In November 2024, Orano further reported that it had lost operational control,

to authorities in Niger, of another of its uranium mines.

This mine was in production, but had been impacted by export restrictions imposed

by the Junta.

During October 2023, geopolitical instabilities

spread further to the Middle East after a Hamas attack on Israel triggered a counterattack by Israel on the Gaza Strip.

This additional

hot spot further increases volatility in the world and destabilizes the Middle East region that is highly influential on global energy

The Israel-Hamas hostilities have escalated over the Summer of 2024 and then spread to other countries in the Middle East.

the beginning of 2025, Israel and Hamas agreed to a ceasefire which ended in March 2025;

the hostilities resumed in March and it is not

clear when and if the combatants will be able to negotiate a new ceasefire or an end to military actions.

In August 2025, the Israeli

Prime Minister spoke of Israel’s intention to take control of the entire Gaza Strip and said that he will be seeking backing from

Israeli government ministers.

On June 13, 2025, Israel attacked key nuclear and military facilities in Iran with Iranian military responding

with attacks on Israel soon after.

The conflict escalated quickly, which raised significant concerns for the stability of the region,

and oil prices increased sharply in the first days of the war.

On June 22, 2025, the United States military bombed a number of Iranian

nuclear sites in a move to force Iranian authorities to negotiate a nuclear treaty and end the hostilities.

Subsequently, both Israel

and Iran began to abide by a ceasefire, which appears to be holding.

President Trump presented a 20-point Gaza ceasefire plan and

pressured both sides forcing Israel and Palestinians into indirect negotiations and a ceasefire resulted.

This resulted in a hostage-prisoner

exchange in October 2025, when the remaining living Israeli hostages were released and exchanged for almost 2,000 Palestinian prisoners

and detainees held by Israel.

The hope is for a post-war governance plan that will result in a lasting ceasefire;

negotiations are ongoing.

After failed diplomatic negotiations, on February 28, 2026, the United

States and Israel launched a joint operation on Iran which extended to neighboring Gulf countries.

This new conflict has caused shipping

disruptions in the Strait of Hormuz which are increasing energy prices and having a negative effect on world markets overall.

portion of the Middle East daily oil production is transported through the Strait of Hormuz.

This had further implications for energy-importing

nations as their uranium buyers are more focused on domestic security and away from regional logistical risks.

Among those at risk of

an Iranian strike in Central Asia is Kazakhstan, the largest producer of uranium.

Private Placements

On October 14, 2025, the Company closed a

brokered private placement of 6,555,556 units at a price of $0.64 (CAD $0.90) per unit (the “October 2025 PP”).

The aggregate gross proceeds raised in the

private placement amounted to $4,202,281 (CAD $5,900,000).

Each unit is comprised of one common share of Western and one common

share purchase warrant.

Each warrant is exercisable into one common share at a price of $0.85 (CAD $1.20) per share for a period of

54 months following the closing date of the private placement.

A total of 6,555,556 common shares and warrants to purchase 6,555,556

common shares were issued to investors and warrants to purchase 229,444 common shares were issued to broker dealers in connection

with the private placement.

A 7% cash commission and broker warrants equal to 3.5% of the number of units sold, each exercisable

into one common share at the issue price for a period of 54 months following the closing date, will be issued to the sole

underwriter in connection with the offering.

The units under the October 2025 PP were issued

to certain purchasers pursuant to the listed issuer financing exemption (“LIFE”) under Part 5A of National Instrument 45-106–

Prospectus Exemptions , as amended by the Coordinated Blanket Order 45-935Exemptions from Certain Conditions of the Listed Issuer

Financing Exemption .

In connection with the LIFE offering, the Company filed with the applicable securities regulators a Second Amended

and Restated Offering Document dated October 14, 2025 (the “LIFE Offering Document”) whereby, among other things, the Company

described the intended use of its available funds after closing of the LIFE offering.

As of the date hereof, the Company used the funds

largely as described in the LIFE Offering Document, but the Company is planning to delay the drilling, monitoring and permitting work

at the San Rafael Uranium Project and to slow down the mine development and maintenance at the Sage Mine, the Van 4 Mine and the Sunday

Mine Complex .

Currently, the Company’s focus with its available funds is to advance the permitting of the Mustang Mineral Processing

Plant and to perform exploratory drilling at the Uranium Ridge project.

Although the Company currently intends to use its cash resources

as described herein, there may be circumstances where a reallocation of funds may be deemed prudent or necessary, which may result in

actual expenses varying materially from projections.

Such a reallocation could be done in light of a number of factors, including the

Company’s ability to execute its business plan, market conditions and results achieved from previous expenditures.

For a more detailed

discussion on the Company’s plans, see Item 1:

Business and Item 1A:

Risk Factors .

Share Repurchase Program, NCIB

On December 19, 2025, the Company implemented

a normal course issuer bid (“NCIB”) to allow it to purchase up to 6,672,291 of its common shares representing approximately

10% of the Company’s “public float” as of December 17, 2025, as defined under the policies of the CSE.

The Company may

purchase shares under the NCIB over a 12-month period beginning on December 19, 2025 and ending on December 18, 2026.

Shares repurchased

under the NCIB shall be purchased on the open market through the facilities of the CSE or Canadian alternative trading systems at the

prevailing market price of the shares at the time of purchase and in accordance with the policies of the CSE and applicable Canadian securities

All shares purchased under the NCIB are required to be cancelled.

The Company will fund any such purchases of shares under the NCIB

with cash on hand.

The exact timing and amount of purchases of shares pursuant to the

NCIB, if any, will depend on market conditions, the Company’s priorities for the use of our cash to fund the licensing and development

of the Mustang Mineral Processing Plant, development of its mining properties, working capital considerations and other factors.

has no obligation to acquire any shares under the NCIB and may suspend or discontinue purchases under the NCIB at any time.

NCIB program was established due to an index methodology change which resulted in the disposition, by sale into the public markets during

December 2025, of the Company’s shares held by an investment fund who was a shareholder of the Company.

During the year ended December 31, 2025, no shares

were repurchased under the NCIB.

On June 13, 2025, the Company closed a private

placement of 5,911,786 units at a price of $0.63 (CAD $0.85) per unit.

The aggregate gross proceeds raised in the private placement amounted

to $3,693,424 (CAD $5,025,018) and proceeds net of issuance costs were $3,331,687 (CAD $4,532,939).

Each unit is comprised of one common

share of Western and one common share purchase warrant.

Each warrant is exercisable into one common share at a price of $0.77 (CAD $1.05)

per share for a period of four years following the closing date of the private placement.

A total of 5,911,786 common shares and warrants

to purchase 5,911,786 common shares were issued to investors and warrants to purchase 206,913 common shares were issued to broker dealers

in connection with the private placement.

Of the 5,911,786 common shares and warrants issued to investors, 117,647 were issued to Mr.

Glasier for his participation in the private placement.

Results of Operations

Year Ended December 31, 2024 as

Compared to the Year Ended December 31, 2023

Year Ended December 31, 2025 as Compared

to the Year Ended December 31, 2024

The following table presents the Company’s

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Interest income, net

Other expense, net

Other income (expense), net

(10,112,037 )

Other comprehensive (loss) income

Other comprehensive loss

Foreign currency translation adjustment

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$ (10,271,899 )

Our consolidated net loss for the years

ended December 31, 2024 and 2023 was $10,112,037 and $4,942,594, respectively.

The principal components of these year over year

changes are discussed below.

Our consolidated net loss for the years ended

December 31, 2025 and 2024 was $7,175,923 and $10,112,037, respectively.

The principal components of these year over year changes are

discussed below.

Our comprehensive loss for the years ended Decembers

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were $425,448 as compared to $183,803 for the year ended December 31, 2024.

The decrease in revenues of $247,262, or 57%, was primarily

related to lower production volumes from the oil and gas wells due to short-term well-pad maintenance shutdown in the second quarter and

lower well performance attributable to production decline curves during the year ended December 31, 2024 as compared to the year ended

December 31, 2023.

The increase in revenues of $241,645, or 131%, was primarily

related to $297,285 of revenue from the sale of uranium bearing material during the year ended December 31, 2025 as compared to receiving

only oil and gas royalties during the year ended December 31, 2024.

Mining Expenditures

Mining expenditures for the year ended December

31, 2024 were $5,285,140 as compared to $2,951,579 for the year ended December 31, 2023.

The increase in mining expenditures of $2,333,561,

or 79%, was principally attributable to the scaling up of mining activities at the Sunday Mine Complex, which involved the hiring of additional

mining personnel, increased mining services and supplies costs, and increased maintenance and depreciation costs for mining equipment

and vehicles placed into service.

Mining expenditures for the year ended December 31, 2025 were $4,447,119

as compared to $5,285,140 for the year ended December 31, 2024.

The decrease in mining expenditures of $838,021, or 16%, was principally

attributable to a decrease in mining, drilling, and explosive supplies, reduced Rimrock joint venture costs and lower non-cash stock-based

compensation expense.

These decreases were principally offset by an increase in depreciation expense from additional equipment, facilities

being placed in service during 2025, and an increase in reclamation expenditures due to the first quarter 2025 completion of the Van 4

Professional Fees

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31, 2025 were $581,224 as compared to $613,403 for the year ended December 31, 2024.

The increase in professional fees of $226,930, or

59%, was primarily due to increased accounting and legal costs in connection with an elevated level of business, mining and acquisition

The decrease in professional fees of $32,179, or

5%, was primarily due to higher professional fees during the year ended December 31, 2024 in connection with an elevated level of business,

mining and acquisition activities, which has since reduced during the 2025 period.

General and Administrative

General and administrative expenses for the year

ended December 31, 2024 were $3,599,460 as compared to $1,884,456 for the year ended December 31, 2023.

The increase in general and administrative

expenses of $1,715,004, or 91%, is primarily due to increases in employee headcount and compensation, employee benefits, non-cash stock-based

compensation and insurance costs in connection with increased mining activities.

General and administrative expenses for the year ended December 31,

2025 were $2,283,333 as compared to $3,599,460 for the year ended December 31, 2024.

The decrease in general and administrative expenses

of $1,316,127, or 37%, was primarily due to a reduction in payroll and benefits expenses due to a decrease in staff size, and to a decrease

in non-cash stock-based compensation expense.

Consulting Fees

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2025 were $399,696 as compared to $1,020,577 for the year ended December 31, 2024.

The increase in consulting fees of $716,120 was due

to the costs incurred during the period for the licensing and permitting of the mineral processing plant sites in Utah and Colorado.

The decrease in consulting fees of $620,881, or 61%,

was due to a spending shift in the mineral processing plant licensing efforts.

The current period was comprised of lower baseline data

collection costs at the Mustang site, whereas the prior period was comprised predominantly of higher engineering costs at the Maverick

Interest Income, Net

Interest income, net for the year ended December

31, 2024 was $224,738 as compared to $158,904 for the year ended December 31, 2023.

The increase in interest income, net of $65,834, or

41%, was principally attributable to higher interest rates earned on higher cash balances during the year ended December 31, 2024 compared

to the year ended December 31, 2023.

Other Expense, Net

Other expense, net for the year ended December

31, 2024 was $1,998 as compared to $5,598 for the year ended December 31, 2023.

The decrease in other expense, net was primarily due to

a lower loss on the sale of a used vehicle during the year ended December 31, 2024 as compared to the year ended December 31, 2023.

Interest income, net for the year ended December 31, 2025 was $106,207

as compared to $224,738 for the year ended December 31, 2024.

The decrease in interest income, net of $118,531, or 53%, was principally

attributable to a decrease in interest earned due to lower interest rates and lower cash balances during the year ended December 31, 2025

as compared to the year ended December 31, 2024.

Other Income (Expense), Net

Other income (expense), net for the year ended

December 31, 2025 was income of $3,794 as compared to expense of $1,998 for the year ended December 31, 2024.

The change in other income

(expense), net of $5,792 was attributable to a gain on the disposal of equipment during the year ended December 31, 2025 as compared

to a loss on disposal of equipment incurred during the year ended December 31, 2024.

Foreign Currency Translation Adjustment

Foreign currency translation adjustment for the year ended December

31, 2024 was a loss of $159,862 as compared to a gain of $187,123 for the year ended December 31, 2023.

The change in foreign currency

translation adjustment is primarily due to the weakening of the CAD against the USD.

Foreign currency translation adjustment for the

year ended December 31, 2025 was a loss of $35,259 as compared to a loss of $159,862 for the year ended December 31, 2024.

foreign currency translation adjustment loss for the year ended December 31, 2025 was principally attributable to a narrowing of the

exchange rate exposure, as compared to the year ended December 31, 2024.

Liquidity and Capital Resources

Our cash and cash equivalents and restricted cash

balance as of December 31, 2024 was $6,295,624.

Our cash position is highly dependent on our ability to raise capital through the issuance

of debt and equity and our management of expenditures for mining and for the development of our mineral processing mill and for the fulfillment

of our public company reporting responsibilities.

Our management believes that in order to finance the development and mining operations

of the mining properties, to construct our Kinetic Separation equipment and operations and to secure regulatory licenses for and to construct

our uranium and vanadium minerals processing facilities, we will be required to raise additional capital by way of debt and/or equity.

We will also require additional working capital to continue to scale-up our mining operations at the Sunday Mine Complex.

is based on our current financial position and is subject to change if opportunities become available based on current exploration program

results and/or external opportunities.

Our cash and cash equivalents and restricted

cash balance as of December 31, 2025 was $6,858,183.

Our cash position is highly dependent on our ability to raise capital through the

issuance of debt and equity and our management of expenditures for mining and for the development of our mineral processing mill and

for the fulfillment of our public company reporting responsibilities.

Our management believes that in order to finance the development

and mining operations of the mining properties, to construct our Kinetic Separation equipment and operations and to secure regulatory

licenses for and to construct our uranium and vanadium minerals processing facilities, we will be required to raise additional capital

by way of debt and/or equity.

We will also require additional working capital to continue to scale-up our mining operations at the Sunday

Mine Complex.

This outlook is based on our current financial position and is subject to change if opportunities become available based

on current exploration program results and/or external opportunities.

Net Cash Used In Operating Activities

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for the year ended December 31, 2025, as compared with $8,297,043 used in operating activities for the year ended December 31, 2024.

increase of $4,207,548 in cash used in operating activities was principally driven by an increase in net loss of $5,169,443, offset by

an increase of $713,112 in stock-based compensation and an increase of $350,778 in depreciation.

The decrease of $2,521,308 in cash used in operating activities was principally driven by a decrease in net loss of $2,936,114 as cost

cuts were phased-in during the year and an increase of $209,155 in depreciation expense, offset by a decrease of $584,320 in stock-based

compensation.

Net Cash Used In Investing Activities

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for the year ended December 31, 2025, as compared with $3,391,888 for the year ended December 31, 2024.

The increase in cash used in investing

activities of $987,448 was principally due to the purchase of land for the Mustang mill site of $1,982,093 in connection with the acquisition

The decrease in cash used in

investing activities of $2,626,439 was principally due to reduced purchases of mining equipment and vehicles in the current period.

have shifted emphasis from new acquisitions to refurbishing our previously acquired vehicles and equipment.

Net Cash Provided By Financing Activities

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$7,137,957 for the year ended December 31, 2025, as compared with $8,152,328 for the year ended December 31, 2024.

The increase in cash

provided by financing activities of $2,307,917 was principally due to a $3,601,414 increase in proceeds from warrant exercises, partially

reduced by a $1,289,997 decrease in aggregate net proceeds from the private placement during the calendar year 2024 as compared to the

calendar year 2023.

The decrease in cash

provided by financing activities of $1,014,371 was principally due to a $3,591,087 increase in proceeds from private placements during

2025 offset by proceeds of $4,605,458 from warrant exercises during 2024.

There was no corresponding warrant exercises during 2025.

Asset Retirement Obligations

Our mines are subject to certain AROs, which we

have recorded as liabilities.

The AROs of the United States mines are subject to legal and regulatory requirements and estimates of the

costs of asset retirement obligations are reviewed periodically by the applicable regulatory authorities.

The ARO represents our best

estimate of the present value of future reclamation costs in connection with the mineral properties.

During the year ended December 31, 2024, in connection

with our San Rafael Mine and Sunday Mine Complex, we incurred additional gross and discounted asset retirement obligations of $412,534

and $80,508, respectively.

We determined the aggregate gross ARO of the mineral properties to be $1,163,978 and $751,444 as of December

31, 2024 and December 31, 2023, respectively.

The portion of the asset retirement obligation related to the Van 4 Mine, which is in reclamation

as of December 31, 2024, and its related restricted cash are included in current liabilities and current assets, respectively, at a value

During the year ended December 31, 2024, our internal mining operations team has been performing the Van 4 Mine reclamation

work, and the State of Colorado has not yet reduced the associated asset retirement obligation amount.

The Company’s asset retirement obligations

are subject to legal and regulatory requirements.

Estimates of the costs of reclamation are reviewed periodically by the Company and the

applicable regulatory authorities.

The asset retirement obligations represent the Company’s estimate of the present value of future

reclamation costs, discounted using a credit adjusted risk-free interest rates of 5.4% for the years ended December 31, 2024 and 2023.

The net discounted aggregated values as of December 31, 2024 and 2023 were $410,098 and $316,619, respectively.

On September 17, 2024

and March 13, 2025, the Company remitted $61,403 and $351,131, respectively in connection with the aforementioned 2024 incremental AROs.

Financial warranties to secure AROs as of December 31, 2024 and 2023 were $812,993 and $751,444, respectively.

Our mines are subject to certain AROs, which

we have recorded as liabilities.

The AROs of the United States mines are subject to legal and regulatory requirements and estimates of

the costs of asset retirement obligations are reviewed periodically by the applicable regulatory authorities.

The ARO represents our

best estimate of the present value of future reclamation costs in connection with the mineral properties.

During the year ended December 31, 2025, in connection with our Sage

Mine, we incurred additional gross and discounted asset retirement obligations of $24,396 and $6,713, respectively.

We determined the

gross ARO of the mineral properties to be $1,187,553 and $1,163,978, as of December 31, 2025 and 2024, respectively.

The portion of the

asset retirement obligation related to the Van 4 Mine, which is in reclamation as of December 31, 2025, and its related restricted cash

are included in current liabilities and current assets, respectively, at a value of $75,057.

During the year ended December 31, 2025,

our internal mining operations team has been performing the Van 4 Mine reclamation work.

We submitted our Surety Reduction Request application

to the CDRMS on January 7, 2026 for a reduction of the financial warranty based on current site conditions and consideration of reclamation

activities completed thus far.

On March 19, 2026, the CDRMS concluded its review and approved the Company’s request and reduced

the financial warranty from $75,057 to $49,350.

The asset retirement obligations represent the

Company’s estimate of the present value of future reclamation costs, discounted using a credit adjusted risk-free interest rates

of 5.4% as of December 31, 2025 and 2024.

The net discounted aggregated values as of December 31, 2025 and 2024 were $415,164 and $410,098,

respectively.

On March 13, 2025 and July 31, 2025, the Company remitted $351,131 and $24,489, respectively, in connection with the reevaluation

of reclamation costs for existing mining properties.

The gross AROs as of December 31, 2025 and 2024 are secured by financial warranties

in the amount of $1,187,553 and $812,993, respectively.

Oil and Gas Lease and Easement

In 2017, we entered into an oil and gas lease

that became effective with respect to minerals and mineral rights owned by us of approximately 160 surface acres of our property in Colorado.

As consideration for entering into the lease, the lessee has agreed to pay us a royalty from the lessee’s revenue attributed to

oil and gas produced, saved, and sold attributable to the net mineral interest.

We entered into an oil and gas lease that became

effective with respect to minerals and mineral rights owned by us on approximately 160 surface acres of our property in Colorado.

consideration for entering into the lease, the lessee has agreed to pay us a royalty from the lessee’s revenue attributed to oil

and gas produced, saved, and sold attributable to the net mineral interest.

We have also received cash payments from the lessee related

1 unchanged sentence

On June 23, 2020, the same entity as discussed

above elected to extend the oil and gas lease easement for three additional years, through July 2023.

This was done to provide additional

time in order to complete well construction and commence oil and gas production.

During 2021, the operator completed a first set of eight

(8) wells which commenced oil and gas production by August 2021.

During 2022, the operator completed a second set of eight (8) wells which

commenced oil and gas production by August 2022.

All sixteen (16) wells remain in production and monthly royalty payments will be ongoing

in perpetuity as long as oil and/or gas are produced from the pooled unit containing these sixteen (16) wells.

During the years ended December 31, 2024 and 2023,

we recognized aggregate revenue of $183,803 and $431,065, respectively, under these oil and gas lease arrangements.

above elected to extend the oil and gas lease easement for three additional years, commencing on the date the lease would have previously

During 2021, the operator completed a first set of eight (8) wells which commenced oil and gas production by August 2021.

2022, the operator completed a second set of eight (8) wells which commenced oil and gas production by August 2022.

All sixteen (16)

wells remain in production and monthly royalty payments will be ongoing in perpetuity as long as oil and/or gas are produced from the

pooled unit containing these sixteen (16) wells.

Under the oil and gas lease and easement arrangements,

during the years ended December 31, 2025 and 2024, we recognized aggregate revenue of $128,163 and $183,803, respectively, under these

oil and gas lease arrangements.

Related Party Transactions

2 unchanged sentences

Prior to the acquisition of Black Range, Mr.

Glasier, the Company’s CEO, who is also a director of the Company (“Seller”), transferred his interest in a former joint

venture with Ablation Technologies, LLC to Black Range.

In connection with the transfer, Black Range issued 25 million shares of Black

Range common stock to Seller and committed to pay $309,138 (AUD $500,000) to Seller within 60 days of the first commercial application

George Glasier, the Company’s CEO, who is also a director of the Company (“Seller”), transferred his interest in a

former joint venture with Ablation Technologies, LLC to Black Range.

In connection with the transfer, Black Range issued 25 million shares

of Black Range common stock to Seller and committed to pay $333,349 (AUD $500,000) to Seller within 60 days of the first commercial application

of the Kinetic Separation technology.

4 unchanged sentences

in the amount of $333,349 and $309,138 as of December 31, 2025 and 2024, respectively.

On October 1, 2024, Western, through its wholly owned subsidiary, Western

Utah, executed a binding stock purchase agreement (the “PRC Agreement”) to purchase 100% of the shares of PRC from a private

investor group and thereby acquire an 880 acre property located in Montrose County, Colorado, where a uranium processing plant was previously

licensed but never constructed.

George Glasier, the President, CEO and a director of Western, and his wife Kathleen owned 50% of the shares

of PRC, and Andrew Wilder, a director of Western, indirectly owned 3% of the shares of PRC.

Therefore, this transaction constitutes a

related party transaction.

The Company’s Board of Directors established an independent committee of the Board, comprised of directors

who are not considered to have an interest in the transaction.

The independent committee of the Board oversaw the negotiation and approved

the entering into the PRC Agreement on behalf of Western.

Of the total cash paid to the sellers, $414,584 was paid to George Glasier and

$24,875 was paid to an affiliate of Andrew Wilder.

On October 1, 2024, Western, through its wholly

owned subsidiary, Western Utah, executed a binding stock purchase agreement (the “PRC Agreement”) to purchase 100% of the

shares of PRC from a private investor group and thereby acquire an 880 acre property located in Montrose County, Colorado, where a uranium

processing plant was previously licensed but never constructed.

George Glasier, the President, CEO and a director of Western, and his

wife Kathleen owned 50% of the shares of PRC, and Andrew Wilder, a director of Western, indirectly owned 3% of the shares of PRC.

this transaction constitutes a related party transaction.

The Company’s Board of Directors established an independent committee

of the Board, comprised of directors who are not considered to have an interest in the transaction.

The independent committee supervised

the negotiation of and approved Western’s entry into the PRC Agreement.

Of the total cash paid to the sellers, $414,584 was paid

to George Glasier and $24,875 was paid to an affiliate of Andrew Wilder.

We have multiple lease arrangements with Silver

Hawk Ltd., an entity which is owned by George Glasier and his wife Kathleen Glasier.

These leases, which are all on a month-to-month basis,

are for our rental of office, workshop, warehouse and employee housing facilities.

We incurred rent expense of $106,500 and $71,700 in

connection with these arrangement for the years ended December 31, 2024 and 2023, respectively.

During the years ended December 31, 2024 and 2023,

we purchased equipment from Silver Hawk Ltd.

for $9,000 and $25,800, respectively.

These leases, which are all on a month-to-month

basis, are for the rental of office, workshop, warehouse and employee housing facilities.

In connection with these arrangements, we incurred

rent expense of $108,546 and $106,500 for the years ended December 31, 2025 and 2024, respectively.

We are obligated to pay Mr.

Glasier for reimbursable

expenses in the amount of $83,554 and $84,040, included within accounts payable and accrued expenses, as of December 31, 2024 and 2023,

expenses in the amount of $74,063 and $83,554, included within accounts payable and accrued liabilities, as of December 31, 2025 and

2024, respectively.

During the year ended December 31, 2024, we purchased

equipment from Silver Hawk Ltd.

There were no purchases from Silver Hawk Ltd.

during the year ended December 31, 2025.

In connection with the Company’s June 13,

2025 private placement, of the 5,911,786 common shares and warrants issued to investors, 117,647 were issued to Mr.

Glasier for his participation

in the private placement.

In December 2025, Mr.

Glasier acquired an aggregate

of 100,000 common shares of the Company at a price of $0.35 (CAD $0.48 as of December 31, 2025).

Going Concern

With the exception of the quarter ended June

2022, we had incurred losses from our operations.

During the years ended December 31, 2024 and 2023, we generated net losses of $10,112,037

and $4,942,594, respectively.

We expect to generate operating losses for the foreseeable future as we incur expenses to bring our mineral

processing facilities online and further expand our mining operations.

As of December 31, 2024 and 2023, we had an accumulated deficit

of $28,929,894 and $18,817,857, respectively, and working capital of $5,240,584 and $8,970,434, respectively.

30, 2022, we had incurred losses from our operations and as of December 31, 2025, had an accumulated deficit of $36,105,817 and working

capital of $5,384,164.

Since inception, we have met our liquidity requirements

principally through the issuance of notes, the sale of our common shares and from limited revenue sources.

During the year ended December

31, 2024, we received $4,605,458 in proceeds from the exercise of our common share warrants.

During November 2024, we closed a brokered

private placement of 4,142,906 units at a price of $0.94 (CAD $1.32) per unit.

The aggregate net proceeds raised in the private placement

amounted to $3,546,870 (CAD $4,975,966).

On October 14, 2025, the Company

closed a brokered private placement of 6,555,556 units at a price of $0.64 (CAD $0.90) per unit.

The aggregate gross proceeds raised

in the private placement amounted to $4,202,281 (CAD $5,900,000) and proceeds net of issuance costs were $3,806,270 (CAD $5,344,010).

On June 13, 2025, we closed a brokered private placement of 5,911,786 units at a price of $0.63 (CAD $0.85) per unit.

The aggregate gross

proceeds raised in the private placement amounted to $3,693,424 (CAD $5,025,018) and proceeds net of issuance costs were $3,331,687 (CAD

Of the 5,911,786 common shares and warrants issued to investors, 117,647 were issued to Mr.

Glasier for his participation

in the private placement.

During November 2024, we closed a private placement of 4,142,906 units at a price of $0.94 (CAD $1.32) per

The aggregate gross proceeds raised in the private placement amounted to $3,897,166 (CAD $5,468,636) and proceeds net of issuance

costs were $3,546,870 (CAD $4,975,966).

During year ended December 31, 2024, we received $4,605,458 (CAD $6,238,248) in proceeds from

the exercise of common share warrants to purchase 5,198,540 common shares.

Our ability to continue our operations and to

1 unchanged sentence

Management’s plans include seeking

to procure additional funds through debt and equity financings, to secure regulatory approval licenses to fully utilize our Kinetic Separation,

to permit and construct the Mustang Minerals Processing Plant for the processing of uranium and vanadium to generate operating cash flows.

We will also require capital to fund the ongoing in-house mining operations at the Sunday Mine Complex.

There are no assurances that we will be able to

raise capital on terms acceptable to us or at all, or that cash flows generated from our operations will be sufficient to meet our current

operating costs and required debt service.

If we are unable to obtain sufficient amounts of additional capital, we may be required to

reduce the scope of our planned product development, which could harm our financial condition and operating results, or we may not be

able to continue to fund our ongoing operations.

These conditions raise substantial doubt about our ability to continue as a going concern

to sustain operations for at least one year from the issuance of the accompanying financial statements.

to procure additional funds through debt and equity financings, to secure regulatory approval licenses to fully utilize Kinetic Separation

and to permit and construct the Mustang Minerals Processing Plant for the processing of uranium and vanadium to generate operating cash

We will also require capital to fund the ongoing in-house mining operations at the Sunday Mine Complex and other portfolio projects.

There are no assurances that we will be able

to raise capital on terms acceptable to us or at all, or that cash flows generated from our operations will be sufficient to meet our

current operating costs and required debt service.

If we are unable to obtain sufficient amounts of additional capital, we may be required

to reduce the scope of our planned product development, which could harm our financial condition and operating results, or we may not

be able to continue to fund our ongoing operations.

These conditions raise substantial doubt about our ability to continue as a going

concern to sustain operations for at least one year from the issuance of the accompanying financial statements.

The accompanying consolidated

8 unchanged sentences

at the date of the consolidated financial statements and reported amounts of expenses during the reporting period.

Significant assumptions about the future and other

sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a material adjustment

to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, include, but are not

limited to, the following:

fair value of transactions involving common shares, assessment of the useful life and evaluation for impairment

of intangible assets, valuation and impairment assessments of mineral properties and equipment, deferred contingent consideration, asset

retirement obligations, valuation of stock-based compensation, and HST.

Other areas requiring estimates include allocations of expenditures,

depletion and amortization of mineral rights and properties.

QUANTITATIVE AND QUALITATIVE DISCLOSURES

ABOUT MARKET RISK

Significant assumptions about the future and

other sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a material

adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, include,

but are not limited to, the following:

fair value of transactions involving common shares, assessment of the useful life and evaluation

for impairment of intangible assets, valuation and impairment assessments of mineral properties and equipment, deferred contingent consideration,

asset retirement obligations, valuation of stock-based compensation, and HST.

Other areas requiring estimates include allocations of

expenditures, depletion and amortization of mineral rights and properties.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET

Not applicable.

FINANCIAL STATEMENTS AND SUPPLEMENTARY

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

This information appears following Item 16 of

this report and is included herein by reference.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS

ON ACCOUNTING AND FINANCIAL DISCLOSURE

CHANGES IN AND DISAGREEMENTS WITH

ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Not applicable.

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