SEDAR Interim Financial Statements

PRISM RESOURCES INC. (An Exploration Stage Company) CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) Nine Months Ended September 30, 2025 and 2024 Corporate Head Office 3552 West 41st Avenue, P O Box 71030 Vancouver, British Columbia V6N 4J9 Telephone: 604-803-4883 NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3(3) (a) continuous disclosure requirement, if any auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited condensed interim consolidated financial statements have been prepared by and are the responsibility of the Company’s management. The Company’s independent auditor has not performed a review of these Condensed Interim Consolidated Financial Statements. PRISM RESOURCES INC. (An Exploration Stage Company) CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) September 30, 2025 and 2024 Page INDEX Condensed Interim Consolidated Financial Statements Condensed Interim Consolidated Statements of Financial Position 1 Condensed Interim Consolidated Statements of Comprehensive Loss 2 Condensed Interim Consolidated Statements of Cash Flows 3 Condensed Interim Consolidated Statements of Changes in Equity (Deficit) 4 Notes to the Condensed Interim Consolidated Financial Statements 5-11 The accompanying notes form an integral part of these condensed interim consolidated financial statements 1 PRISM RESOURCES INC. (An Exploration Stage Company) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) September 30, 2025 December 31, 2024 ASSETS Current assets Cash $ 6,493 $ 19,718 Accounts receivable 302 1,487 Prepaid expenses - 1,250 6,795 22,455 $ 6,795 $ 22,455 LIABILITIES AND SHAREHOLDERS’ DEFICIT Current liabilities Accounts payable and accrued liabilities $ 827,619 $ 780,667 Due to related parties (note 6) 1,913,091 1,907,659 Loans payable (notes 3 and 6) 100,000 100,000 Convertible loans (note 3 and 6) 380,000 360,000 3,220,710 3,148,326 Shareholders’ deficit Share capital (note 4) 16,463,801 16,463,801 Share-based payments reserve 924,834 924,834 Deficit (20,602,550) (20,514,506) (3,213,915) (3,125,871) $ 6,795 $ 22,455 Approved on behalf of the Directors: “Robert Parsons” Director “Scott Ross” Director Robert Parsons Scott Ross The accompanying notes form an integral part of these condensed interim consolidated financial statements 2 PRISM RESOURCES INC. (An Exploration Stage Company) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 Expenses Investor relations $ 180 $ 180 $ 1,990 $ 1,922 Listing and filing fees 3,048 2,999 9,987 10,901 Office 957 951 3,171 3,154 Professional fees 7,453 6,996 28,154 30,509 Loss before other items (11,638) (11,126) (43,302) (46,486) Other items Finance cost (note 3) - - (5,000) - Interest expense (note 6) (13,799) (12,404) (39,883) (36,944) Foreign exchange gain (loss) (3,464) 103 141 (2,130) Total other items (17,263) (12,301) (44,742) (39,074) Net loss --- and comprehensive loss for the period $ (28,901) $ (23,427) $ (88,044) $ (85,560) Basic and diluted loss per common share $ (0.00) $ (0.00) $ (0.00) $ (0.00) Weighted average number of common shares outstanding – Basic and diluted 51,945,393 51,945,393 51,945,393 51,945,393 The accompanying notes form an integral part of these condensed interim consolidated financial statements 3 PRISM RESOURCES INC. (An Exploration Stage Company) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) NINE MONTHS ENDED SEPTEMBER 30, 2025 2024 Operating activities Net loss for the period $ (88,044) $ (85,560) Items not affecting cash: Finance cost (note 3) 5,000 - Foreign exchange (gain) loss (141) 2,130 Changes in non-cash working capital items: Accounts receivable 1,185 (306) Prepaid expenses 1,250 1,250 Accounts payable and accrued liabilities 47,093 48,191 Due to related parties 5,432 6,205 Cash used in operating activities (28,225) (28,090) Financing activities Cash received from convertible loans (note 3) 15,000 - Cash provided by financing activities 15,000 - Decrease in cash during the period (13,225) (28,090) Cash, beginning of the period 19,718 30,381 Cash, end of the period $ 6,493 $ 2,291 Supplemental cash flow information Interest received $ - $ - Interest paid $ - $ - Income taxes paid $ - $ - The accompanying notes form an integral part of these condensed interim consolidated financial statements 4 PRISM RESOURCES INC. (An Exploration Stage Company) CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN DEFICIT (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) Number of Shares Share Capital Share-based Payments Reserve Deficit Total Balance, December 31, 2023 51,945,393 $ 16,463,801 $ 924,834 $ (20,380,679) $ (2,992,044) Net loss for the period - - - (85,560) (85,560) Balance, September 30, 2024 51,945,393 16,463,801 924,834 (20,466,239) (3,077,604) Net loss for the period - - - (48,267) (48,267) Balance, December 31, 2024 51,945,393 16,463,801 924,834 (20,514,506) (3,125,871) Net loss for the period - - - (88,044) (88,044) Balance, September 30, 2025 51,945,393 $ 16,463,801 $ 924,834 $ (20,602,550) $ (3,213,915) PRISM RESOURCES INC. (An Exploration Stage Company) NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 5 1. NATURE OF OPERATIONS AND GOING CONCERN The principal business activity of Prism Resources Inc. (the “Company”) is the acquisition and exploration of mineral properties. The Company was incorporated under the Business Corporations Act (British Columbia). The Company is an exploration stage company. The head office of the Company is located at 3552 West 41st Avenue, P O Box 71030, Vancouver, British Columbia V6N 4J9, Canada. The registered and records office of the Company is located at Suite 1500 – 1055 West Georgia Street, Vancouver, British Columbia V6E 4N7, Canada. These condensed interim consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern, which presumes that the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. In assessing whether the going concern assumption is appropriate, management takes into a --- ccount all available information about the future, which is at least, but not limited to, twelve months from September 30, 2025. Management is aware in making its assessment of material uncertainties relating to events or conditions that may cast significant doubt upon the Company’s ability to continue as a going concern, as explained below. Several adverse conditions cast significant doubt on the validity of this assumption. The Company has incurred operating losses of $88,044 for the period ended September 30, 2025 (2024 - $85,560), is currently unable to self-finance operations, has a working capital deficit of $3,213,915 (December 31, 2024 - $3,125,871), a deficit of $20,602,550 (December 31, 2024 - $20,514,506), limited resources, no source of operating cash flow and no assurances that sufficient funding will be available. The Company does not generate cash flow from operations, and has therefore relied principally upon the issuance of securities for financing. Future capital requirements will depend on many factors including the Company's ability to execute its business plan. The Company intends to continue relying upon the issuance of securities to finance its future activities, but there can be no assurance that such financing will be available on a timely basis under terms acceptable to the Company. Although these condensed interim consolidated financial statements do not include any adjustments that may result from the inability to secure future financing, such a situation would have a material adverse effect on the Company’s business, results of operations and financial condition. The business of resource exploration involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable operations. The Company has no source of revenue, and has significant cash requirements to meet its administrative overhead and to acquire, explore and maintain its future exploration and evaluation assets. PRISM RESOURCES INC. (An Exploration Stage Company) NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 6 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation These condensed interim consolidated financial statements have been prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of interim financial statements, including International Accounting Standard (“IAS”) 34, “Interim Financial Reporting”. The condensed interim consolidated financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2024, which have been prepared in accordance with IFRS as issued by the IASB. These condensed interim consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at their fair value. In addition, these condensed interim consolidated financial statements have been prepared using the accrual basis of accounting. These condensed interim consolidated financial statements are prepared in Canadian dollars, which is also the Company’s functional currency. Basis of consolidation These condensed interim consolidated financial statements include the accounts of the Company and its wholly-owned integrated subsidiaries, 0938980 B.C. Ltd. and Compañia Minera Prism --- Peru S.A.C. (“Prism Peru”). All significant intercompany balances and transactions have been eliminated upon consolidation. Material accounting policies The accounting policies, estimates and judgments, methods of computation and presentation applied in these condensed interim consolidated financial statements are consistent with those of the previous financial year. Accordingly, the interim financial statements should be read in conjunction with the Company’s most recent annual financial statements. Approval of consolidated financial statements The condensed interim consolidated financial statements were reviewed and approved by the Audit Committee and authorized for issue by the Board of Directors on November 26, 2025. PRISM RESOURCES INC. (An Exploration Stage Company) NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 7 3. LOANS PAYABLE AND CONVERTIBLE LOANS Loans payable Total Balance, December 31, 2023, 2024 and September 30, 2025 $ 100,000 Convertible loans Total Balance, December 31, 2023 $ 332,000 Funds received 21,000 Fair value adjustments 7,000 Balance, December 31, 2024 $ 360,000 Funds received 15,000 Fair value adjustments 5,000 Balance, September 30, 2025 $ 380,000 On February 22, 2018, the Company entered into loan agreements (the “Loan Agreements”) with certain shareholders, including certain directors of the Company. The loans granted pursuant to the Loan Agreements total $100,000, with each of the lenders loaning $30,000 to the Company, with the exception of the CFO, who is loaning $10,000. The Loans bear interest at an annual rate of 12% per annum due on or before August 21, 2019, and are secured against all or substantially all of the assets of the Company. Pursuant to the Loan Agreements, on June 25, 2018, the Company issued 200,000 Bonus Shares to the lenders with an aggregate value of $20,000 which the Company recorded as interest expense. On October 9, 2019, the Company entered into promissory note (the “Promissory Note”) with certain shareholders, including a director of the Company. The loans granted pursuant to the Promissory Note total $166,000. The Loans bear interest at an annual rate of 15% per annum due on or before the thirtieth day after demand is made by the lenders, and are secured by a general security agreement. Pursuant to the Promissory Note, the Company shall pay to the lenders an amount equal to 25% of any funds to which the Company may become entitled in respect of the claim filed in the Ontario Superior Court of Justice against Detour. The Company also grants to the lenders the option to acquire a 100% in the Royalty for the sum of $3,000,000 at any time prior to the Company repaying the outstanding balance and accrued interest owing under the Promissory Note in full. If the Company sells the Royalty, the lenders shall be entitled to 25% of the proceeds of such sale or disposition. On March 24, 2021, the Company’s noteholders agreed to lend additional funds to the Company in the amount of $83,000 with substantially the same terms as the October 9, 2019 promissory note. The loans granted pursuant to the promissory note total $249,000. The royalty provision in the note has been revised such that the Company shall pay to the lenders an amount equal to 35% of any funds to which the Company may become entitled in respect of the claim filed in the Ontario Superior Court --- of Justice against Detour. Pursuant to a conversion provision, the lenders have the option to convert on a dollar-for-dollar basis the entire unpaid principal and all accrued and unpaid interest into common shares of the Company at a price per share determined by dividing the dollar amount being converted by the market price of the shares, less the maximum allowable discount pursuant to applicable exchange policies. During the year ended December 31, 2021, a fair value adjustment of $83,000 was recognized as finance cost. PRISM RESOURCES INC. (An Exploration Stage Company) NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 8 3. LOANS PAYABLE AND CONVERTIBLE LOANS (cont’d) In December 2024, the Company’s noteholders agreed to lend additional funds to the Company in the amount of $21,000 with substantially the same terms as the March 24, 2021 promissory note. The loans granted pursuant to the promissory note total $270,000. The convertible loans are designated as at FVTPL. During the year ended December 31, 2024, a fair value adjustment of $7,000 was recognized as finance cost. In June 2025, the Company’s noteholders agreed to lend additional funds to the Company in the amount of $15,000 with substantially the same terms as the March 24, 2021 promissory note. The loans granted pursuant to the promissory note total $285,000. The convertible loans are designated as at FVTPL. During the period ended September 30, 2025, a fair value adjustment of $5,000 was recognized as finance cost. 4. SHARE CAPITAL Authorized Unlimited number of voting common shares without par value. Issued There were no shares issued during the period ended September 30, 2025. Stock options The Company has a stock option plan (the “Plan”) under which it is authorized to grant options to executive officers, directors, employees and consultants enabling them to acquire up to 10% of the issued and outstanding common stock of the Company. Under the Plan, the exercise price of each option equals the market price of the Company's stock, less applicable discount, as calculated on the date of grant. The options can be granted for a maximum term of ten years with vesting terms determined by the Board of Directors. Stock option transactions are summarized as follows: September 30, 2025 December 31, 2024 Number of options Weighted average exercise price Number of options Weighted average exercise price Balance, beginning of the period 3,200,000 $ 0.10 3,200,000 $ 0.10 Granted - $ - - $ - Balance, end of the period 3,200,000 $ 0.10 3,200,000 $ 0.10 The weighted average remaining contractual life of options outstanding at September 30, 2025 was 6.42 (December 31, 2024 – 7.17) years. PRISM RESOURCES INC. (An Exploration Stage Company) NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 9 4. SHARE CAPITAL (cont’d) Stock options outstanding and exercisable are as follows: September 30, 2025 December 31, 2024 Expiry date Exercise price Options outstanding Options exercisable Exercise price Options outstanding Options exercisable March 1, 2032 $ 0.10 3,000,000 3,000,000 $ 0.10 3,000,000 3,000,000 March 13, 2032 $ 0.11 200,000 200,000 $ 0.11 200,000 200,000 3,200,000 3,200,000 3,200,000 3,200,000 Share-based payments During the period en --- ded September 30, 2025 and 2024, the Company did not grant any stock options. 5. NET PROFIT INTEREST The Company has a 7.5% Net Profits Interest in certain mining claims in the Porcupine Mining District of Ontario, Canada (“Royalty”) owned by Detour Gold Corp. (“Detour”), which was acquired by Agnico Eagle in 2022. On July 10, 2017, the Company announced that it had entered into an agreement (the “Royalty Purchase Agreement”) with AuRico Metals Inc. and AuRico Metals Canadian Royalty partnership (together “Au Rico”) for the sale by the Company of the Royalty to AuRico. Following the announcement, the Company and AuRico received a written communication from Detour claiming the Royalty is invalid and unenforceable against Detour, notwithstanding Detour’s long and consistent disclosure record to the contrary. On July 21, 2017, the Company announced that the Royalty Purchase Agreement had been terminated, as a direct result of Detour’s newly stated position repudiating any obligations under the Royalty. The Company and Detour went through legal battles regarding the enforceability of the Company’s net profits Royalty from 2017 to 2022. In 2022, the Court of Appeal for Ontario ruled unanimously to dismiss Detour’s appeal of the summary judgement awarded to the Company in 2021. The Company’s net profits Royalty is fully enforceable against Detour. PRISM RESOURCES INC. (An Exploration Stage Company) NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 10 6. RELATED PARTY TRANSACTIONS The related party transactions incurred during the period ended September 30, 2025 were in the normal course of operations. During the period ended September 30, 2025, the Company did not pay or accrue any expenses to related parties other than interest expense of $6,012 (2024 - $5,783). At September 30, 2025, included in due to related parties is $1,913,091 (December 31, 2024 - $1,907,659) in expenses owing to directors. These amounts are unsecured, non-interest-bearing and due on demand. At September 30, 2025, included in loans payable and convertible loans payable was $62,319 (December 31, 2024 - $61,144) payable to directors, interim CEO and the CFO of the Company. These loans bear interest at an annual rate varying from 12% to 15% per annum due on demand, and are secured against all or substantially all of the assets of the Company (note 3). The Company has also entered into change of control agreements with officers of the Company. In the case of termination, the officers are entitled to an amount equal to the sum of the annual base fees then payable to the officer and the immediate vesting of all granted and unvested stock options if the Company terminates the engagement within twelve months of a change of control without cause. The Company’s directors and management agreed to suspend directors’ fees and management fees commencing January 1, 2023. 7. COMMITMENTS On July 1, 2016, the Company entered into a consulting agreement whereby the consultant is to serve as the Company’s Corporate Secretary for an indefinite term for $42,000 per year. Pursuant to the consulting agreement, the consultant is entitled to certain benefits coverage, participation in the Company’s stock option plan, and one year’s fees and benefits if the engagement is terminated without cause. The Company and the Corporate Secretary has agreed to suspend the accrua --- l of consulting fees effective January 1, 2023. 8. CAPITAL MANAGEMENT The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support future business opportunities. The Company defines its capital as shareholders’ equity. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business. The Company currently has no source of revenues, and accordingly, is dependent upon external financings to fund activities. In order to carry future projects and pay for administrative costs, the Company will need to raise funds as needed. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There were no changes in the Company’s approach to capital management during the period ended September 30, 2025. The Company is not subject to externally imposed capital requirements. PRISM RESOURCES INC. (An Exploration Stage Company) NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Unaudited – Prepared by Management) (Expressed in Canadian Dollars) NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 11 9. SUBSIDIARIES Significant subsidiaries for the periods ended September 30, 2025 and 2024 are: Country of Incorporation Principal Activity The Company’s effective interest for 2025 The Company’s effective interest for 2024 0938980 B.C. Ltd. British Columbia, Canada Holding company 100% 100% Compañia Minera Prism Peru S.A.C. Peru Holding company 100% 100%