What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-05-14 compared with 2025-11-14 · 325 added, 520 removed, 404 unchanged (68% of the section changed)

90 unchanged sentences

As of the subsequent measurement date, June 30, 2025, Western reconfirmed its qualification as a foreign private

issuer for periods ended through December 31, 2025.

issuer for periods ending through December 31, 2026.

The Company has registered offices at 5 Church

11 unchanged sentences

November 2025.

The recent rally was ignited in mid-September by President Trump and DOE Secretary Wright touting U.S.

nuclear power and

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

nuclear power

domestic fuel cycle, which rallied uranium equity markets.

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

late in 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.

to observe capital market volatility fueled by political and trade uncertainties related to the ongoing tariff situation initiated by

the current US Administration and the U.S.

government shutdown.

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.

The long-term uranium price trend is strong.

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 late in 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.

Company’s interpretation of market signals was that uranium markets would stabilize at replacement price levels.

However, given

the 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 the

Ukraine and Gaza wars, political and trade/tariff uncertainties and more recently the war with Iran.

This conservative approach has been adopted to

1 unchanged sentence

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.

the development of the 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

18 unchanged sentences

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.

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

By securing nearby resources,

3 unchanged sentences

and exploration drill program.

The objectives are to confirm the historic drilled-out resources and expand the resource to the peripheral

newly added 500 acres of claims acquired by staking.

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.

On June 12, 2025, the Company funded a $50,000

surety bond for San Miguel County, Colorado, which allowed the Company to commence deliveries in late June 2025.

During April and May,

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.

During the period from late June 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, predominantly from the December 2021 through March 2022 project.

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

During the three and nine months ended September

30, 2025, we recognized revenue from the sale of ore, net of royalty, of $297,285.

As of September 30, 2025, included within other current

assets on the consolidated balance sheet were receivables in the amount of $297,285 due from Purchaser.

At the end of September, Western

made the decision to pause additional future deliveries in favor of focusing the mining staff on development projects, thus retaining

stockpiled materials for Western’s processing plant that is targeted to come online in 2029.

The objectives are to confirm the historic drilled-out resources and expand the resource to the newly added

500 acres of claims acquired by staking.

Mustang Mineral Processing Plant

11 unchanged sentences

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

Site improvements commenced during the fourth quarter 2024, as monitoring equipment and infrastructure were installed and the existing

roads were graded.

Official baseline data collection at Mustang began on January 22, 2025, for the first quarter ended March 31, 2025.

Data has been continuously collected for the first three quarters of 2025, and the report is being compiled for the quarter-ended September

Results to date for both water and air quality are consistent with prior data collected by the former owners.

Data collection

and compilations will continue into 1Q 2026, allowing the team to also begin preparing the radioactive materials license application in

1Q 2026 with the goal of submitting the application during 3Q 2026.

Mustang’s completion is critical for in-house yellowcake production.

Mustang Mineral Mill Site Acquisition

On October 1, 2024, Western, through its wholly

owned subsidiary, Western Utah, executed a binding stock purchase agreement to purchase 100% of the shares of PRC from a private investor

group and thereby acquire Mustang, which is a wholly owned subsidiary of PRC.

Mustang owns an 880-acre property located in Montrose County,

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

Western has acquired, in addition to the Maverick site in Utah.

It also becomes part of Western’s plans for developing and licensing

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

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, and so the transaction was considered a related party transaction.

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

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

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.

team will begin preparing the radioactive materials license application in 2Q 2026 targeting submission in late 4Q 2026.

completion is critical for in-house yellowcake production.

Western Joins Three U.S.

Government Consortiums

As the growing strategic importance of critical

minerals and nuclear fuel to both the U.S.

government and the civilian nuclear fleet has been met with market distortions caused by foreign

state-owned enterprises, the U.S.

government has taken decisive action to secure its energy and defense interests.

To participate in this

solution, Western has joined the Defense Production Act Nuclear Fuel Cycle (the “DPA”), Defense Industrial Base (the “DIBC”),

and Cornerstone consortia, which collectively aim to eliminate reliance on foreign uranium and strengthen the domestic industrial base.

These collaborative partnerships between the Department of Energy, the Department of Defense, and industry leaders are designed to secure

and accelerate a resilient domestic supply chain, ensuring long-term energy independence and supporting the competitive operation of current

and future nuclear reactors, and supplies of all critical materials and minerals.

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

This was a staffing and capital intensive project because the mining team was working deep underground across four mines.

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

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

during the second and third quarters 2025 as the mining team alternated between mine development and hauling / delivery activities related

to the Ore Purchase Agreement.

In the first quarter of 2025, the extension of the GMG deposit secondary escape became the main underground

During 2025, Western extended work in three areas

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

We plan to continue, on a smaller scale, to rehabilitate additional Sunday

Mine Complex areas which indicate defined uranium mineralization.

Notably, this additional rehabilitation would further expand capacity.

Current development supports the potential for full production.

Sunday Mine Complex Drilling Program

The first phase of the horizontal underground

drilling program has now been 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

Geotechnical 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.

early 2024, Western began 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 defined additional mining areas utilizing underground horizontal drilling.

program included 20,366 feet of drilling plus an additional 1,655 feet of core drilling and confirmed five mineralized pockets in the

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

Lastly, the operations team moved to an area of the Sunday Mine where

the prior operator ceased production.

Existing underground workings were rehabilitated and utilities were installed in a large stope area

close to the former production face.

At March 31, 2026, uranium pricing remains in

close proximity to the suppressed levels, which caused the Company to make corresponding reductions in mining operations beginning in

Underground operations were scaled back 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 capacity.

Additional Projects To Expand Production

Looking forward, Management is considering opportunities

Looking forward, we are considering opportunities

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

3 unchanged sentences

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

and discussed in more detail below.

and is 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.

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

For the Van 4 Mine, 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

During the second quarter of 2024, Western submitted

a Notice of Intent to the U.S.

3 unchanged sentences

Currently all permits have been received

that are needed for the drilling of monitor wells, and 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.

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.

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

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

15 unchanged sentences

the preliminary engineering work is also transferable.

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

San Rafael Uranium Project;

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.

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

the eight year term of the easement.

On June 23, 2020, the operator 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 three months ended September 30, 2025

and 2024, we recognized aggregate revenue of $31,107 and $52,981, respectively, and for the nine months ended September 30, 2025 and 2024,

we recognized aggregate revenue of $102,837 and $147,035, respectively, under these oil and gas lease arrangements.

For the three and

nine months ended September 30, 2025, oil and gas royalties declined due to lower volumes attributable to production decline curves.

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 site.

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

2 unchanged sentences

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).

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

16 unchanged sentences

domestic nuclear industry and battery technologies.

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;

we believe 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.

Then on 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.

The Biden-Harris Administration’s DOE sponsored

multiple programs to support the U.S.

nuclear sector with the goal of replacing nuclear fuel and services coming from Russia and the DOE

continues to prepare for a Russian counter-sanction terminating the flow of nuclear fuel and services from Russia.

Multiple bills were

introduced into the U.S.

Congress, and several have been passed that provide funding to the U.S.

domestic nuclear fuel cycle.

This incited a strong uranium mining stock rally the following day.

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 the U.S.

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 U.S.

economy and national security.

As a result, uranium projects

qualify increasingly for federal incentives, national stockpiling, and priority research.

Currently, nuclear energy appears to enjoy bipartisan

With the change in Presidential Administrations the climate change and clean energy initiatives of the Biden-Harris Administration

have been de-emphasized.

In his first day, after returning to 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.

On February 14, 2025, President Trump signed an Executive

Order creating the National Energy Dominance Council as a Presidential Department of the White House.

This was done to support domestic

energy projects and develop policies that will increase domestic energy production.

On May 23, 2025, President Trump signed four Executive

Orders specifically boosting the U.S.

domestic nuclear fuel cycle, resulting in a a strong uranium mining stock rally on the following

Since taking office, President Trump has signed a number of Executive Orders to boost the energy sector that we believe to be directly

or indirectly beneficial to nuclear and/or uranium mining industries.

In mid-September, 2025, President Trump and DOE Secretary Wright

nuclear power, the potential for new advancements, and the U.S.

domestic fuel cycle, after which the uranium equity markets

showed a short-term rally.

During August 2025, DOE’s Office of Nuclear

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

Energy established the Defense Production Act Consortium that will seek participation by U.S.

companies through voluntary agreements.

1 unchanged sentence

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.” Due to the U.S.

shutdown, the first meeting of the DPA Consortium was rescheduled from October 14, 2025 to October 23, 2025.

In mid-September, President

Trump and DOE Secretary Wright touted U.S.

nuclear power, the potential for new advancements, and the U.S.

domestic fuel cycle which rallied

uranium equity markets for a few weeks.

The capital markets have yet to reflect the very

positive impact of these pro-energy policies for the uranium mining sector as this has initially been overshadowed by the announcements

tariffs and reciprocal tariffs on the United States’ largest trading partners.

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 sources.

Western is a member of the Mining & Milling Committee.

United States Ban of Russian Uranium due

9 unchanged sentences

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 due to difficulties selling uranium to European or North American buyers due to sanctions recently imposed upon Russia.

As of March 31, 2026, 1.75 years remain until all Russian uranium products are fully banned from importation into the United States.

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.

2024, in response to the U.S.

ban 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.

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 Russia.

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.

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 2025.

at this time when and how it will end.

In 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

Nuclear Fuel and Uranium Market Conditions

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

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

November 2025.

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.

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 sector.

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.

Beginning in 2023, 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

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.

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

largest suppliers.

Positive nuclear energy news has continued to

11 unchanged sentences

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.

uranium equities at the end of 2024 and in the beginning of 2025, and the nuclear and uranium equities that initially benefited saw a

price reversal.

This investment flow of funds is ongoing.

During periods when the investment community seeks to increase AI/data center

exposure, investments have been flowing into the nuclear and uranium sector.

And then when the investment community seeks to reduce its

AI/data center exposure, these flows tend to reverse.

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

23 unchanged sentences

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.

Expanding Kazakhstan uranium exports to Russia, China and India

significantly reduces future supply for Western nuclear fuel buyers.

In July 2023, the government of Niger was overthrown

15 unchanged sentences

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 where the release of the remaining living Israeli hostages were 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.

As of March 31, 2026, the Middle East remains

a volatile focal point for global energy markets following years of escalating conflict that expanded from the 2023 Israel-Hamas war into

a direct military confrontation with Iran and its proxies.

In Gaza, a fragile ceasefire currently holds between the two nations.

large-scale hostilities have subsided, global stability continues to hinge on these ongoing talks to establish a post-war governance structure

and secure a permanent end to the military actions that have destabilized the region.

After failed diplomatic negotiations, on February

28, 2026, the United States and Israel launched a joint operation against Iran which extended to neighboring Gulf countries.

conflict has caused shipping disruptions in the Strait of Hormuz which has caused energy prices to spike and had a general negative effect

on world markets.

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

A temporary US-Iran

ceasefire was negotiated, while the parties attempt to negotiate a deal to end the war.

This process is ongoing.

In the Strait of Hormuz,

ships remain stranded and ship traffic is still significantly reduced.

This has further implications for energy-importing nations as their

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

A secondary implication for uranium miners

is that a large portion of the world’s sulphur, a key ingredient in the manufacturing of sulfuric acid used for mining and milling

of uranium, is shipped through the Strait of Hormuz.

Furthermore, among those countries at potential risk of an Iranian strike in Central

Asia is Kazakhstan, the largest producer of uranium.

Private Placements

13 unchanged sentences

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).

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.

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.

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

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

Notably the 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 three months ended March 31, 2026,

no shares were repurchased under the NCIB.

Results of Operations

The following table presents the Company’s

financial results for the three and nine months ended September 30, 2025 and 2024.

financial results for the three months ended March 31, 2026 and 2025.

For the Three Months Ended

September 30,

For the Nine Months Ended

September 30,

Mining expenditures

11 unchanged sentences

$ (2,652,950 )

$ (5,769,923 )

$ (7,534,441 )

Three Months Ended September 30, 2025 as Compared to the Three

Months Ended September 30, 2024

Three Months Ended March 31, 2026 as Compared to the Three Months

Ended March 31, 2025

Our condensed consolidated net loss for the three

months ended September 30, 2025 and 2024 was $1,122,592 and $2,241,170, respectively.

months ended March 31, 2026 and 2025 was $1,600,837 and $2,637,615, respectively.

The principal components of these quarter over quarter

1 unchanged sentence

Our comprehensive loss for the three months ended

September 30, 2025 and 2024 was $1,131,332 and $ 2,227,152, respectively.

Our revenues for the three months ended September

March 31, 2026 and 2025 was $1,616,142 and $2,652,950, respectively.

Our revenues for the three months ended March

31, 2026 and 2025 were $27,351 and $41,221, respectively.

The increase in revenues of $275,411, or 520% was primarily related to $297,285

of revenue from the sale of uranium bearing material during the three months ended September 30, 2025 as compared to receiving only oil

and gas royalties during the three months ended September 30, 2024.

The decrease in revenues of $13,870, or 34% was related to both lower oil prices

and lower oil and gas well volumes attributable to production decline curves during the three months ended March 31, 2026 as compared

to the three months ended March 31, 2025.

Mining Expenditures

Mining expenditures for the three months ended

September 30, 2025 were $830,960 as compared to $1,166,343 for the three months ended September 30, 2024.

March 31, 2026 were $709,138 as compared to $1,691,149 for the three months ended March 31, 2025.

The decrease in mining expenditures

of $335,383, or 29% was principally attributable to decreases in mining supplies and services, reduced Rimrock joint venture costs, lower

non-cash stock-based compensation expense, and lower payroll expenses due to a reduction in headcount.

During the quarter, the operations

team notably shifted their focus toward making deliveries of previously stockpiled material.

of $982,011, or 58% was principally attributable to a cost saving initiative to reduce underground mining activities, pending market pricing

signals to scale up mining operations.

This resulted in reductions in the costs of personnel, mining supplies and services, maintenance

and electricity costs.

Professional Fees

Professional fees for the three months ended September

30, 2025 were $89,518 as compared to $127,049 for the three months ended September 30, 2024.

Professional fees for the three months ended March

31, 2026 were $164,303 as compared to $171,620 for the three months ended March 31, 2025.

The decrease in professional fees of $7,317

or 30% was attributable to reduced public company costs.

or 4% was principally attributable to a decrease in accounting fees.

General and Administrative

General and administrative expenses for the three

months ended September 30, 2025 were $519,291 as compared to $813,403 for the three months ended September 30, 2024.

The decrease in general

and administrative expense of $294,112, or 36% is primarily due to a decrease in compensation expenses due to a reduced headcount, and

a decrease in non-cash stock-based compensation expense.

months ended March 31, 2026 were $673,174 as compared to $732,078 for the three months ended March 31, 2025.

The decrease in general and

administrative expense of $58,904, or 8% is primarily due to decreases in insurance and travel costs.

Consulting Fees

Consulting fees for the three months ended September

30, 2025 were $60,415 as compared to $247,850 for the three months ended September 30, 2024.

The decrease in consulting fees of $187,435,

or 76% was due to a spending shift in the mineral processing plant licensing efforts.

Consulting fees for the three months ended September

30, 2025 consisted principally of baseline data collection costs, whereas the cost in the prior period consisted principally of third-party

engineering and design costs.

Consulting fees for the three months ended March

31, 2026 were $111,277 as compared to $115,148 for the three months ended March 31, 2025.

Consulting fees were basically flat, period

over period, and during the three months ended March 31, 2026 consisted principally of baseline data collection costs.

Interest Income, Net

Interest income, net for the three months ended

September 30, 2025 was $44,080 as compared to $62,492 for the three months ended September 30, 2024.

The decrease in interest income,

net of $18,412, or 29% was principally attributable to a decrease in interest earned due to lower cash balances during the three months

ended September 30, 2025 as compared to the three months ended September 30, 2024.

Other Income, Net

Other income, net for the three months ended September

30, 2025 was $5,120 as compared to a loss of $1,998 for the three months ended September 30, 2024.

The $7,118 increase in income for the

three months ended September 30, 2025 was attributable to the gain on the disposal of equipment, as compared to a loss on disposal of

equipment incurred for the three months ended September 30, 2024.

Foreign Currency Translation Adjustment

Foreign currency translation adjustment for the

three months ended September 30, 2025 was a loss of $8,740 as compared to a gain of $14,018 for the three months ended September 30, 2024.

The shift to a loss for the three months ended September 30, 2025 was principally attributable to a strengthening of the USD versus CAD,

as compared to the prior period.

Nine Months Ended September 30, 2025 as Compared to the Nine

Months Ended September 30, 2024

Our condensed consolidated net loss for the nine

months ended September 30, 2025 and 2024 was $5,728,741 and $7,343,580, respectively.

The principal components of these period over period

changes are discussed below.

Our comprehensive loss for the nine months ended

September 30, 2025 and 2024 was $5,769,923 and $7,534,441, respectively.

Our revenues for the nine months ended September

30, 2025 and 2024 was $400,122 and $147,035, respectively.

The increase in revenues of $253,087, or 172% was primarily related to $297,285

of revenue from the sale of uranium bearing material during the nine months ended September 30, 2025 as compared to receiving only oil

and gas royalties during the nine months ended September 30, 2024.

Mining Expenditures

Mining expenditures for the nine months ended

September 30, 2025 were $3,666,975 as compared to $3,860,173 for the nine months ended September 30, 2024.

The decrease in mining expenditures

of $193,198, or 5% 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 payroll and benefits

principally due to a reclassification from general and administrative expenses to mining expenses, an increase in depreciation expense

from additional equipment, facilities being placed in service during 2025, and an increase in reclamation costs due to the first quarter

2025 completion of the Van 4 reclamation.

Professional Fees

Professional fees for the nine months ended September

30, 2025 were $504,435 as compared to $484,926 for the nine months ended September 30, 2024.

The increase in professional fees of $19,509

or 4% was principally attributable to increased audit and accounting costs in connection with the increase in the scale of the Company’s

business and mining operations.

This was offset partially by a reduction in legal fees.

General and Administrative

General and administrative expenses for the nine

months ended September 30, 2025 were $1,796,763 as compared to $2,604,516 for the nine months ended September 30, 2024.

The decrease in

general and administrative expense of $807,753, or 31%, is primarily due to a reduction in payroll and benefits expenses due to both a

decrease in staff size and the reclassification of payroll expenses from general and administrative expenses to mining expenses, and to

a decrease in non-cash stock-based compensation expense.

Consulting Fees

Consulting fees for the nine months ended September

30, 2025 were $251,199 as compared to $738,204 for the nine months ended September 30, 2024.

The decrease in consulting fees of $487,005,

or 66%, 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 nine months ended

September 30, 2025 was $85,389 as compared to $199,202 for the nine months ended September 30, 2024.

The decrease in interest income,

net of $113,813 or 57% was principally attributable to a decrease in interest earned due to lower cash balances during the nine months

ended September 30, 2025 as compared to the nine months ended September 30, 2024.

Other Income, Net

Other income, net for the nine months ended September

30, 2025 was $5,120 as compared to a loss of $1,998 for the nine months ended September 30, 2024.

The $7,118 increase for the nine months

ended September 30, 2025 was attributable to a gain on the disposal of equipment, as compared to a loss on disposal of equipment incurred

for the nine months ended September 30, 2024.

March 31, 2026 was $34,263 as compared to $31,159 for the three months ended March 31, 2025.

The increase in interest income, net of $3,104,

or 10% was principally attributable to an increase in interest earned on higher cash balances during the three months ended March 31,

2026 as compared to the three months ended March 31, 2025.

Other Income (Expense), Net

Other expense, net for the three months ended

March 31, 2026 was $4,559 as compared to $0 for the three months ended March 31, 2025.

The $4,559 increase in expense for the three months

ended March 31, 2026 was attributable to the loss on the sale of a vehicle.

Foreign Currency Translation Adjustment

Foreign currency translation adjustment for the

nine months ended September 30, 2025 was a loss of $41,182 as compared to a loss of $190,861 for the nine months ended September 30, 2024.

The lower foreign currency translation adjustment loss for the nine months ended September 30, 2025 was principally attributable to a

narrowing of the exchange rate exposure, as compared to the September 30, 2024 period.

three months ended March 31, 2026 was a loss of $15,305 as compared to a loss of $15,335 for the three months ended March 31, 2025.

Liquidity and Capital Resources

Our cash and cash equivalents and restricted cash

balances as of September 30, 2025 was $4,429,439.

balances as of March 31, 2026 was $5,795,227.

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 plant and for the fulfillment

of public company reporting responsibilities.

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

our mining resource properties, to deploy Kinetic Separation units and operations and to secure regulatory licenses for and to construct

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

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.

of equity and our management of expenditures for mining and for the development of our mineral processing facility 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 resource properties, to construct our Kinetic Separation equipment and operations and to secure regulatory licenses for

and to construct our uranium and vanadium mineral 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.

Net Cash Used In Operating Activities

Net cash used in operating activities for the

nine months ended September 30, 2025 and 2024 was $4,782,893 and $5,762,812, respectively.

three months ended March 31, 2026 and 2025 was $1,043,509 and $2,186,106, respectively.

The decrease of $1,142,597 in cash used in operating

activities was principally driven by a decrease in net loss of $1,614,839 offset by a decrease of $383,227 in stock-based compensation

and increased depreciation expense.

activities was principally driven by a decrease in net loss of $1,036,778 and a period over period increase of $106,286 in accounts payable

and accrued liabilities, offset by a decrease of $33,138 in stock-based compensation.

Net Cash Used In Investing Activities

Net cash used in investing activities for the

nine months ended September 30, 2025 and 2024 was $375,257 and $1,178,935, respectively.

The decrease in cash used in investing activities

of $803,678 was principally due to reduced purchases of mining equipment and vehicles in the current period.

We have shifted emphasis

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

three months ended March 31, 2026 and 2025 was $1,000 and $166,507, respectively.

The decrease in cash used in investing activities of

$165,507 was principally due to reduced purchases of mining equipment and vehicles in the current period.

Net Cash Provided By Financing Activities

Net cash provided by financing activities for

the nine months ended September 30, 2025 and 2024 was $3,331,687 and $4,605,458, respectively.

The cash provided by financing activities

of $3,331,687 during the nine months ended September 30, 2025 was due in its entirety to the proceeds from a private placement.

provided by financing activities of $4,605,458 during the nine months ended September 30, 2024 was due in its entirety to warrant exercise

There was no net cash provided by financing activities

for the three months ended March 31, 2026 and 2025.

Asset Retirement Obligations

6 unchanged sentences

We determined the gross ARO of the mineral properties

to be $1,187,553 and $1,163,978, as of September 30, 2025 and December 31, 2024, respectively.

to be $1,187,553 and $1,187,553, as of March 31, 2026 and December 31, 2025, respectively.

The portion of the asset retirement obligation

related to the Van 4 Mine, which is in reclamation as of September 30, 2025, and its related restricted cash are included in current liabilities

related to the Van 4 Mine, which is in reclamation as of March 31, 2026, and its related restricted cash are included in current liabilities

and current assets, respectively, at a value of $75,057.

During the nine months ended September 30, 2025, 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.

Our internal mining operations team completed the last of the Van 4 reclamation

work prior to the March 2, 2025 reclamation deadline and continues to wait for revegetation at the site.

We submitted our surety reduction

request application to the State of Colorado on January 7, 2026 for a reduction of the financial warranty based on current site conditions

and consideration of reclamation activities completed.

On March 19, 2026, the State of Colorado concluded its review and approved

our request and reduced the financial warranty to $49,350 and we are expecting to receive a refund of our financial warranty in the amount

of $25,707 during the second quarter of 2026.

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

The net discounted aggregated values as of September 30, 2025 and December 31, 2024 were $410,569 and $410,098, respectively.

The gross AROs as of September 30, 2025 and December 31, 2024 are secured by financial warranties in the amount of $1,187,553 and $812,993,

respectively.

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

The net discounted aggregated values as of March 31, 2026 and December 31, 2025 were $419,720 and $415,164, respectively.

gross AROs as of March 31, 2026 and December 31, 2025 are secured by financial warranties in the amount of $1,187,553 .

Oil and Gas Lease and Easement

6 unchanged sentences

that we are recognizing incrementally over the eight year term of the easement.

On June 23, 2020, the same entity as discussed

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.

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

Under the oil and gas lease and easement arrangements,

during the three months ended September 30, 2025 and 2024, we recognized aggregate revenue of $31,107 and $52,981, respectively, and for

the nine months ended September 30, 2025 and 2024, we recognized aggregate revenue of $102,837 and $147,035, respectively, under these

during the three months ended March 31, 2026 and 2025, we recognized aggregate revenue of $27,351 and $41,221, respectively, under these

oil and gas lease arrangements.

12 unchanged sentences

consideration obligation is probable and the amount is estimable, we recorded the deferred contingent consideration as an assumed liability

in the amount of $330,988 and $309,138 as of September 30, 2025 and December 31, 2024, respectively.

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

In connection with these arrangements, we incurred

rent expense of $26,325 and $26,325 for the three months ended September 30, 2025 and 2024, respectively, and $79,921 and $76,175 for

the nine months ended September 30, 2025 and 2024, respectively.

in the amount of $344,150 and $333,349 as of March 31, 2026 and December 31, 2025, respectively.

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 the rental

of office, workshop, warehouse and employee housing facilities.

In connection with these arrangements, we incurred rent expense of $26,325

for the three months ended March 31, 2026 and 2025.

We are obligated to pay Mr.

Glasier for reimbursable

expenses in the amount of $45,038 and $83,554, included within accounts payable and accrued liabilities, as of September 30, 2025 and

December 31, 2024, respectively.

During the nine months ended September 30, 2024,

we purchased approximately $9,000 of mining related equipment from Silver Hawk Ltd.

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.

expenses in the amount of $8,124 and $74,063, included within accounts payable and accrued liabilities, as of March 31, 2026 and December

31, 2025, respectively.

Going Concern

With the exception of the quarter ended June 30,

2022, we had incurred losses from our operations and as of September 30, 2025, had an accumulated deficit of $34,658,635 and working capital

2022, we had incurred losses from our operations and, as of March 31, 2026, had an accumulated deficit of $37,706,654 and working capital

of $4,236,069.

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.

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).

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 $4,532,939).

Of the 5,911,786 common shares and warrants issued to investors,

117,647 were issued to Mr.

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

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 $4,532,939).

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 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).

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

15 unchanged sentences

Off Balance Sheet Arrangements

As of September 30, 2025, there were no off-balance

As of March 31, 2026, there were no off-balance

sheet transactions.

9 unchanged sentences

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

of intangible assets, valuation and impairment assessments on mineral properties, deferred contingent consideration, the reclamation liability,

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

Other areas requiring estimates

include allocations of expenditures, depletion and amortization of mineral rights and properties.

Quantitative and Qualitative Disclosures

About Market Risk

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

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-Q

Item 2. Management’s Discussion and Analysis