What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-14 compared with 2026-05-14 · 397 added, 258 removed, 471 unchanged (58% of the section changed)

95 unchanged sentences

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”).

and vanadium resource properties in the states of Utah and Colorado in the United States.

Recent Developments

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

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

November 2025.

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

nuclear power

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

$80.00/lb to $81.50/lb 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.

The Fall 2025 rally was ignited in mid-September by President Trump and the Department of Energy (“DOE”) Secretary Wright

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.

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.

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

around ~$85/lb during the February 2026 to July 2026 period.

The long-term uranium price trend is relatively stronger as it has

rallied from the ~$90/lb to ~$95/lb levels during 2026.

Previously, 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 late

in 2024, we had anticipated a recovery in 2025, supported by the United States 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 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.

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

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and sustainable recovery in uranium markets.

The widening spread between spot pricing and long-term pricing is a positive signal for uranium miners, however uranium equities are moving

in the opposite direction as they have declined in price during the second quarter.

Uranium Ridge Project

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

Mill in Blanding, Utah.

PRM was required to make deliveries at its own cost and the purchase price per ton was based upon the average

grade of uranium of each lot, and other qualifying conditions.

Within 30 days after each lot was closed, Purchaser paid to PRM an 85%

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

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.

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.

At 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.

Accordingly, there were no deliveries of uranium bearing ore to Purchaser

during the three and six months ended June 30, 2026.

At the end of May 2026, the Purchaser concluded its final assayed grade

of the uranium bearing ore, which yielded grades higher than those derived from the sampled grades utilized for the Provisional Payments.

The final chemical assay results indicated natural uranium grades more than 40% higher than the initial probe-indicated estimates.

a result, during the three and six months ended June 30, 2026, we recognized additional revenue of $167,111, net of the applicable royalty,

related to the sale of uranium-bearing ore.

As of June 30, 2026, the net amount of $206,546 remained due and this net amount is net of

the royalty obligation to the Purchaser and is included within other current assets on the condensed interim consolidated balance sheet.

We received the final settlement payment of $206,546 on August 7, 2026.

The higher final assay results provide additional

information regarding uranium grades at the Sunday Mine Complex and may indicate potential for greater mineral resources than previously

estimated from historical drilling data.

However, we have not yet verified whether these results are representative of the entire or

a portion of the unmined and unexplored areas of the Sunday Mine Complex.

Mustang Mineral Processing Plant

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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.

June 30, 2026, four quarters of air quality data collections were completed to align with the previously completed production well water

Two quarters of monitor well, surface, and river water collections have been concluded.

The third quarter of water monitoring

data was completed in July 2026, with the final water collections scheduled for the first week of October 2026.

Results to date for both

water and air quality are 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 is actively preparing the radioactive materials license application while simultaneously

working to acquire a Special Use Permit from Montrose County, Colorado.

As of June 30, 2026, Western remains on track to submit the full

license application to the Colorado Department of Public Health and Environment (“CDPHE”) by the end of 2026, with the goal

of allowing the entire calendar year of 2027 for the CDPHE application review process.

Mustang’s completion is critical for in-house

yellowcake production.

Western Joins Three U.S.

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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, 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 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

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.

At June 30, 2026, uranium pricing and market conditions

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

Beginning in 2026, underground operations were

scaled back, 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 Capacity

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 is discussed in more detail below.

Progress has been made on each of these

At the Topaz Mine, a monitor well was drilled and after being flushed and the installation of new monitoring equipment,

the baseline water quality sampling program commenced in December 2025, and three quarters of water sampling have been completed.

At the Sage Mine, we have now received both state and BLM

approvals to commence limited work at this mine.

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 Company made progress with the Sage Mine project

to update and secure site infrastructure in July 2026 and is expecting completion in August 2026.

The San Rafael Uranium Project, located in Emery

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domestic nuclear fuel cycle.

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.

Currently, nuclear energy appears to enjoy bipartisan support.

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

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.

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 strong uranium mining stock rally on the following day.

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 touted U.S.

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

domestic fuel cycle, after which the uranium equity markets showed a short-term

During August 2025, DOE’s Office of Nuclear

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

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

As of June 30, 2026, 1.5 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.

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

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Nuclear Fuel and Uranium Market Conditions

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.

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.

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 and reduced mobile physical inventories, 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

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

price reversal.

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 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.

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 power purchase agreements signed between

tech companies that sponsor AI data centers and nuclear utilities, these vast power requirements have become viewed by the market as a

significant new long-term demand driver for nuclear energy as the best source of stable/reliable zero-carbon baseload power.

This is another

affirmation of long-term structural demand for nuclear fuel.

Nuclear Fuel Supply Chain

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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.

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.

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 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.

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

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.

In moving away from French and Western alliances, Niger has sought to replace these with Russian and Chinese state-backed enterprises

in its natural resource sector.

This is specifically applicable to uranium projects where both of these countries can bring production

expertise and also be the end customer for all available production.

As of June 30, 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.

While 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.

In late May 2026, the Israeli Prime Minister announced that he has directed the

Israeli military to take control of 70% of the Gaza territory which could lead to a termination of the ceasefire and further escalation

of military activities.

After failed diplomatic negotiations, on February 28, 2026, the United States and Israel launched a joint operation

against Iran.

This new 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

While there have been reports of multiple ceasefires, contradictory messages have been put forth from both sides of this conflict

describing the status.

Capital markets and energy prices have fluctuated based upon the messaging.

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.

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.

The war with Iran continues to impact both physical uranium and uranium

equity prices, but on a larger scale has been the largest variable impacting global capital markets and economies during 2026.

Private Placements

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.

On June 13, 2025, the Company 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).

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.

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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

one common share at the issue price for a period of 54 months following the closing date, were issued to the sole underwriter in connection

with the offering.

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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,

During the three and six months ended June 30,

2026, no shares were repurchased under the NCIB.

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The following table presents the Company’s

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

financial results for the three and six months ended June 30, 2026 and 2025.

For the Three Months Ended

For the Six Months Ended

Mining expenditures

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Interest income, net

Other income (loss), net

Other comprehensive (loss) income

Other income, net

Other comprehensive loss

Foreign currency translation adjustment

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$ (1,985,641 )

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

Ended March 31, 2025

$ (2,792,563 )

$ (4,638,591 )

Three Months Ended June 30, 2026 as Compared to the Three Months

Ended June 30, 2025

Our condensed consolidated net loss for the three

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

months ended June 30, 2026 and 2025 was $1,161,884 and $1,968,534, respectively.

The principal components of these quarter over quarter

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Our comprehensive loss for the three months ended

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

Our revenues for the three months ended March

June 30, 2026 and 2025 was $1,176,421 and $1,985,641, respectively.

Our revenues for the three months ended June 30,

2026 and 2025 were $199,528 and $30,509, respectively.

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.

The increase in revenues of $169,019, or 554% was principally attributable to the

recognition of $167,111 in revenue from the sale of uranium bearing material resulting from an increase in the final assayed grade and

resulting price by the purchaser, for material which was delivered during 2025.

There were no ore deliveries during the three months ended

June 30, 2025.

Mining Expenditures

Mining expenditures for the three months ended

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

June 30, 2026 were $607,934 as compared to $1,144,866 for the three months ended June 30, 2025.

The decrease in mining expenditures of

$536,932, or 47% was principally attributable to our cost saving initiative to reduce underground mining activities, pending market pricing

signals to scale up mining operations.

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Professional Fees

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.

Professional fees for the three months ended June

30, 2026 were $121,299 as compared to $243,297 for the three months ended June 30, 2025.

The decrease in professional fees of $121,998,

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

or 50% was principally attributable to higher accounting fees in the prior year due to increased reliance on external accounting support associated with increased mining activities

and related complexity.

General and Administrative

General and administrative expenses for the three

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

months ended June 30, 2026 were $494,729 as compared to $545,394 for the three months ended June 30, 2025.

The decrease in general and

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

administrative expense of $50,665, or 9% is primarily due to decreases in insurance costs and non-cash stock-based compensation expense.

Consulting Fees

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.

Consulting fees for the three months ended June

30, 2026 were $189,857 as compared to $75,636 for the three months ended June 30, 2025.

The increase in consulting fees of $114,221, or

151% is primarily due to an increase in mill licensing activity and baseline data collection costs.

Interest Income, Net

Interest income, net for the three months ended

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

June 30, 2026 was $24,304 as compared to $10,150 for the three months ended June 30, 2025.

The increase in interest income, net of $14,154,

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.

or 139% was principally attributable to an increase in interest earned on higher invested cash balances during the three months ended

June 30, 2026 as compared to the three months ended June 30, 2025.

Other Income, Net

Other income, net for the three months ended June

30, 2026 was $28,103 as compared to $0 for the three months ended June 30, 2025.

The $28,103 income for the three months ended June 30,

2026 was principally attributable to the sale of mining equipment.

Foreign Currency Translation Adjustment

Foreign currency translation adjustment for the

three months ended June 30, 2026 was a loss of $14,537 as compared to a loss of $17,107 for the three months ended June 30, 2025.

Six Months Ended June 30, 2026 as Compared to the Six Months

Ended June 30, 2025

Our condensed consolidated net loss for the six

months ended June 30, 2026 and 2025 was $2,762,721 and $4,606,149, respectively.

The principal components of these period over period

changes are discussed below.

Our comprehensive loss for the six months ended

June 30, 2026 and 2025 was $2,792,563 and $4,638,591, respectively.

Our revenues for the six months ended June 30,

2026 and 2025 were $226,879 and $71,730, respectively.

The increase in revenues of $155,149, or 216% was principally attributable to the

recognition of $167,111 in revenue from the sale of uranium bearing material resulting from an increase in the final assayed grade and

resulting price by the purchaser, for material which was delivered during 2025, partially offset by both lower oil prices and lower oil

and gas well volumes attributable to production decline curves during the six months ended June 30, 2026 as compared to the six months

ended June 30, 2025.

Mining Expenditures

Mining expenditures for the six months ended June

30, 2026 were $1,317,072 as compared to $2,836,015 for the six months ended June 30, 2025.

The decrease in mining expenditures of $1,518,943,

or 54% was principally attributable to our 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, safety

costs, and electricity costs.

Professional Fees

Professional fees for the six months ended June

30, 2026 were $285,602 as compared to $414,917 for the six months ended June 30, 2025.

The decrease in professional fees of $129,315,

or 31% was principally attributable to higher accounting fees in the prior year due to increased reliance on external accounting support associated with increased mining activities

and related complexity.

General and Administrative

General and administrative expenses for the six

months ended June 30, 2026 were $1,167,903 as compared to $1,277,472 for the six months ended June 30, 2025.

The decrease in general and

administrative expense of $109,569, or 9% is primarily due to decreases in insurance costs and non-cash stock-based compensation expense.

Consulting Fees

Consulting fees for the six months ended June

30, 2026 were $301,134 as compared to $190,784 for the six months ended June 30, 2025.

The increase in consulting fees of $110,350, or

58% is primarily due to an increase in mill licensing activity and baseline data collection costs.

Interest Income, Net

Interest income, net for the six months ended

June 30, 2026 was $58,567 as compared to $41,309 for the six months ended June 30, 2025.

The increase in interest income, net of $17,258,

or 42% was principally attributable to an increase in interest earned on higher invested cash balances during the six months ended June

30, 2026 as compared to the six months ended June 30, 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.

Other income, net for the six months ended June

30, 2026 was $23,544 as compared to $0 for the six months ended June 30, 2025.

The $23,544 income for the six months ended June 30, 2026

was principally attributable to the sales of mining equipment and a vehicle.

Foreign Currency Translation Adjustment

Foreign currency translation adjustment for the

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.

six months ended June 30, 2026 was a loss of $29,842 as compared to a loss of $32,442 for the six months ended June 30, 2025.

Liquidity and Capital Resources

Our cash and cash equivalents and restricted cash

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

balances as of June 30, 2026 was $4,758,366.

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

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Net cash used in operating activities for the

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

six months ended June 30, 2026 and 2025 was $2,168,299 and $3,564,250, respectively.

The decrease of $1,395,951 in cash used in operating

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

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.

activities was principally driven by a decrease in net loss of $1,843,428, offset by period over period reductions in cash used for changes in operating

assets and liabilities, including a decrease of $175,080 related to prepaid expenses and other current assets and an increase of $181,252 in accounts payable and accrued liabilities,

as well as a decrease of $92,886 in stock-based compensation.

Net Cash Provided By (Used In) Investing Activities

Net cash provided by investing activities for

the six months ended June 30, 2026 was $101,146 as compared to cash used in investing activities for the six months ended June 30, 2025

Net cash provided by investing activities for the six months ended June 30, 2026 was attributable to $130,000 in mining equipment

and vehicle sale proceeds, partially offset by $28,854 of equipment purchases.

Net cash used in investing activities for the six months

ended June 30, 2025 was principally attributable to purchases of mining equipment.

Net Cash Provided By Financing Activities

There was no net cash provided by financing activities

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

Net cash provided by financing activities for

the six months ended June 30, 2026 and 2025 was $0 and $3,331,687, respectively.

The cash provided by financing activities of $3,331,687

during the six months ended June 30, 2025 was due in its entirety to private placement proceeds, net.

Asset Retirement Obligations

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

We determined the gross ARO of the mineral properties

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 March 31, 2026, and its related restricted cash are included in current liabilities

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

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 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

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.

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 have also received cash payments from the lessee related to the easement

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

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

We determined the aggregate gross ARO of the mineral properties to

be $1,187,553, as of June 30, 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 June 30, 2026, and its related restricted cash are included in current liabilities and current

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

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.

We are expecting to receive a refund of our financial warranty in the amount of

$25,707 during the third quarter of 2026.

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 rate of 5.4% as of June 30, 2026 and December 31, 2025.

The net discounted aggregated values as of June 30, 2026 and December 31, 2025 were $424,388 and $415,164, respectively.

Financial warranties

to secure AROs as of June 30, 2026 and December 31, 2025 were $1,187,553.

Oil and Gas Lease

In 2017, 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.

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.

As of June 30, 2026, all sixteen (16) wells remain

in production and we recognize royalty revenue on a monthly basis.

The lease remains in effect, and royalty payments will continue for

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 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.

during the three months ended June 30, 2026 and 2025, we recognized aggregate revenue of $32,417 and $30,509, respectively, and for the

six months ended June 30, 2026 and 2025, we recognized aggregate revenue of $59,768 and $71,730, respectively.

Related Party Transactions

11 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 $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.

in the amount of $345,598 and $333,349 as of June 30, 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 and $27,271 for the three months ended June 30, 2026 and 2025, respectively, and $52,650 and $53,596 for the six

months ended June 30, 2026 and 2025, respectively.

We are obligated to pay Mr.

Glasier for reimbursable

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

expenses in the amount of $16,247 and $74,063, included within accounts payable and accrued liabilities, as of June 30, 2026 and December

31, 2025, respectively.

1 unchanged sentence

With the exception of the quarter ended June 30,

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

2022, we have incurred losses from our operations and as of June 30, 2026, had an accumulated deficit of $38,868,538 and working capital

of $3,449,482.

15 unchanged sentences

Management’s plans include seeking

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

to procure additional funds through debt and equity financing, 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

financial statements do not include any adjustments that might result from the outcome of these uncertainties.

Management evaluated conditions and events over

a period of one year from the issuance date of these condensed interim consolidated financial statements.

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 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 financial statements do not include any adjustments that might result from the outcome of these uncertainties.

Off Balance Sheet Arrangements

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

As of June 30, 2026, there were no off-balance

sheet transactions.

16 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis