SEDAR Interim Financial Statements

Seasif Exploration Inc. Consolidated Financial Statements For six months ended June 30, 2025 and 2024 (Expressed in Canadian dollars) SEASIF EXPLORATION INC. Consolidated Statements of Financial Position (expressed in Canadian dollars) 1 June 30, 2025 December 31, 2024 ASSETS Current assets Cash $ 15,621 $ 67,375 Prepaid expenses 4,150 11,986 Total assets $ 19,771 $ 79,361 LIABILITIES and SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities (Note 7) $ 154,704 $ 147,014 Accrued compensation (Note 7) 541,563 541,563 Loan Payable (Note 8) 126,879 125,193 823,146 813,770 Shareholders' equity Share capital (Note 6) 9,860,716 9,860,716 Equity reserves 806,041 806,041 Deficit (11,470,132) (11,401,166) (803,375) (734,409) Total liabilities and shareholders' equity (deficit) $ 19,771 $ 79,361 Nature of operations and going concern (Note 1) These consolidated financial statements were approved for issue by the Board of Directors on November 21, 2025. They are signed on the Company’s behalf by: “Fabio Capponi” “Susan Rubin” Director Chief Financial Officer The accompanying notes are an integral part of these consolidated financial statements SEASIF EXPLORATION INC. Consolidated Statements of Loss and Comprehensive Loss (expressed in Canadian dollars) 2 Three months ended Six months ended Three months ended Six months ended June 30, 2025 June 30, 2025 June 30, 2024 June 30, 2024 Operating expenses General and administrative expenses $ 9,413 $ 23,527 $ 14,073 $ 39,441 Accrued salaries and advisory services (Note 7) - - 70,200 140,400 Geological consulting fees (recovered) - - (9,118) (9,118) 3,998 7,204 5,487 10,208 5,000 10,000 10,918 15,918 Legal fees (recovery) 3,178 (595) - 876 Property investigation costs - 28,801 3,991 10,729 Foreign exchange loss 29 29 26 31 Loss and comprehensive loss for the period $ 21,618 $ 68,966 $ 95,577 $ 208,485 Weighted Average Common Shares Outstanding 123,153,398 123,153,398 121,394,057 119,623,728 Loss per Common share - basic and diluted $0.00 $0.00 $0.00 $0.00 Accounting and audit Employment benefits The accompanying notes are an integral part of these consolidated financial statements SEASIF EXPLORATION INC. Consolidated Statements of Changes in Shareholders’ Equity (expressed in Canadian dollars) 3 Total number of shares issued Total share capital Reserves Deficit Total Shareholders' Equity (Deficit) Balance January 1, 2024 117,853,398 9,764,716 872,041 (6,045,032) 4,591,725 - - - (208,485) (208,485) Exercise of RSU's 3,300,000 66,000 (66,000) - - Shares for Debt 2,000,000 30,000 - - 30,000 Balance June 30, 2024 123,153,398 $ 9,860,716 $ 806,041 $ (6,253,517) $ 4,413,240 Balance January 1, 2025 123,153,398 9,860,716 806,041 (11,401,166) (734,409) - - - (68,966) (68,966) Balance June 30, 2025 123,153,398 $ 9,860,716 $ 806,041 $ (11,470,132) $ (803,375) Net loss Net loss The accompanying notes are an integral part of these consolidated financial statements SEASIF EXPLORATION INC. Consolidated Statements of Cash Flows (expressed in Canadian dollars) 4 Six months ended Six months ended June 30, 2025 June 30, 2024 Cash flows provided by(used in): Operating activities Net loss for the period $ (68,966) $ (208,485) Adjusment for non-cash items: Interest on loan payable 1,686 - Changes in non-cash working capital items: Prepaid expenses 7,836 5,970 Accounts receivable - (1,133) Accounts payable and accrued liabilities 7,690 (8,465) Accrued compensation - 131,441 Net cash used by operating --- activities (51,754) (80,672) Investing activities Exploration and evaluation assets - (12,070) Net cash used by investing activities - (12,070) Financing activities - 30,000 Loan Payable - 70,000 Net cash provided by financing activities - 100,000 Net cash decrease for the period (51,754) 7,258 Cash at beginning of period 67,375 45,656 Cash at end of period $ 15,621 $ 52,914 Shares issued for debt The accompanying notes are an integral part of these consolidated financial statements SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 5 1. Nature of operations and going concern Seasif Exploration Inc. (the “Company”) is a company domiciled in Canada. The address of the Company’s registered office is Suite 1700, Park Place, 666 Burrard Street, Vancouver, BC, Canada V6C 2X8. The Company has one wholly owned subsidiary, Western Atlas Holding Corp., which in turn has one wholly owned subsidiary, 5530 Nunavut Inc., which is domiciled in Canada. The consolidated financial statements of the Company for both periods presented comprises the Company and its subsidiaries (together referred to as the “Company” and individually as “Company entities”). The Company and its subsidiaries are primarily involved in the discovery, acquisition, and development of mineral deposits in premier mining jurisdictions. These consolidated financial statements have been prepared on a basis which assumes that the Company will be able to continue its operation as a going concern for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. During the quarter ended June 30, 2025, the Company incurred a net loss of $21,618 (quarter ended June 30, 2024 - $95,577). At June 30, 2025, the Company had not achieved profitable operations, had an accumulated deficit of $11,470,132 (December 31, 2024 – 11,401,166) and expects to incur further losses as it develops its business and explores its mineral property interests. The Company will be required to raise additional financing to maintain its operations; all the factors indicate the existence of a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern. The Company is in the process of exploring its exploration and evaluation assets and has not yet determined whether they contain resources that are economically recoverable. The recoverability of amounts shown for exploration and evaluation assets is dependent upon, among other things, the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary mining and environmental permits, and upon future profitable production or proceeds from disposition of the mineral property. The ability of the Company to carry out its planned business objectives and continue as a going concern is dependent on its ability to raise adequate financing from lenders, shareholders, and other investors, and/or generate operating profitability and positive cash flow from its mineral property interests. There can be no assurances that the Company will be able to obtain the additional financial resources necessary and/or achieve profitability or positive cash flows from its future operations. If the Company is unable to obtain adequate additional financing, the Company would be required to curtail its planned operations and exploration and development --- activities which may impact the Company’s ability to maintain its mineral property interest. The Company’s business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, changes in laws, and national and international circumstances. Recent geopolitical events and potential economic global challenges such as the risk of higher inflation and energy crises, may also create further uncertainty and risk with respect to the Company’s business. The consolidated financial statements do not include any adjustments relating to the recorded amounts and classification of assets and liabilities should the Company be unable to continue as a going concern. Such adjustments could be material. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 6 2. Basis of preparation (a) Statement of compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). (b) Basis of measurement The consolidated financial statements have been prepared on the historical cost basis, except for certain financial instruments carried at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. (c) Functional and presentation currency These consolidated financial statements are presented in Canadian dollars, which is the functional currency of the Company and its Canadian subsidiaries. (d) Use of estimates and judgments The preparation of the financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates Significant areas requiring the use of estimates and assumptions are as follows: Share-based compensation The fair value of share-based payments is subject to the limitations of the Black-Scholes option pricing model that incorporates market data and involves uncertainty in estimates used by management in the assumptions. Because the Black-Scholes option pricing model requires the input of highly subjective assumptions, including the volatility of share prices, changes in subjective input assumptions can materially affect the fair value estimate. Judgments Critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are as follows: Going Concern The assessment of the Company’s ability to continue as a going concern and to raise sufficient funds to pay its ongoing operating expenses, meet its liabilities for the ensuing year, and to fund planned and contractual exploration programs, involves significant judgment based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 7 2. Basis of preparation (continued) (d) Use of estimates and judgments (continued) Impairment of exploration and evaluation assets The Company’s explo --- ration and evaluation assets represent acquisition and exploration costs relating to the Company’s exploration and evaluation assets. At the end of each reporting period, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the assets, which is the greater of the asset’s value in use and fair value less costs to sell. The Company considers both external and internal sources of information in assessing whether there are any indications that the Company’s exploration and evaluation assets are impaired. (e) Basis of consolidation (i) Subsidiaries Subsidiaries are entities controlled by the Company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Company. Details of the Company’s subsidiaries at June 30, 2025, are as follows: Name Place of Incorporation Interest Principal Activity Western Atlas Holding Corp. British Columbia, Canada 100% Mineral exploration and evaluation 5530 Nunavut Inc. Nunavut, Canada 100% Mineral exploration and evaluation (ii) Transactions eliminated on consolidation Inter-company balances and transactions, and any unrealized income and expenses arising from inter-company transactions, are eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 8 3. Material accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. (a) Financial instruments The following is the Company’s accounting policy for financial instruments under IFRS 9 Financial Instruments (“IFRS 9”): Financial Instrument Classification Cash Fair value through profit or loss (“FVTPL”) Accounts payable and accrued liabilities Amortized cost Accrued compensation Amortized cost Loan payable Amortized cost (b) Share-based payments The Company has a stock option plan; whereby share purchase options are granted in accordance with the policies of regulatory authorities. Share-based payments to employees are measured on the grant date using the Black-Scholes option pricing model and amortized over the vesting periods. Share-based payments to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued if it is determined the fair value of the goods or services cannot be reliably measured and are recorded at the date the goods or services a received on the exercise of stock options is recorded as share capital and the related reserve for share-based payments is transferred to share capital. Where a grant of options is cancelled or settled during the vesting period, excluding forfeitures when vesting conditions are not satisfied, the Company immediately accounts for the cancellation as an acceleration of vesting and recognizes the amount that otherwise would have been recognized for services received over the remainder of the vesting period. Any payment made to the employee --- on the cancellation is accounted for as the repurchase of an equity interest, except to the extent the payment exceeds the fair value of the equity instrument granted, measured at the repurchase date. Any such excess is recognized as an expense. On expiration of options, the previously recognized amount is left in reserves. The Company also has a long-term incentive plan, whereby Restricted Share Units (“RSU’s”) and Deferred Share Units (“DSU’s”) are granted in accordance with the policies of regulatory authorities. The fair value of equity settled RSU’s and DSU’s is measured on the grant date at the closing trading price of the Company’s common shares. Costs are recognized as an expense over the vesting term with a corresponding increase in equity reserves. When RSU’s and DSU’s are settled in shares, recorded fair value is transferred from reserves to share capital. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 9 3. Material accounting policies (continued) (c) Exploration and evaluation assets Exploration and evaluation expenditures include the cost of acquiring licenses, costs associated with exploration and evaluation activities, and the fair value (at acquisition date) of exploration and evaluation assets acquired in a business combination. When shares are issued as consideration for exploration and evaluation asset costs, they are valued at the closing share price on the date of issuance. Exploration and evaluation expenditures are capitalized as incurred. Costs incurred before the Company has obtained the legal right to explore an area are recognized in profit or loss. Exploration and evaluation assets are assessed for impairment if (i) sufficient data exists to determine technical feasibility and commercial viability, and (ii) facts and circumstances suggest that the carrying amount exceeds the recoverable amount. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, which management has determined to be indicated by a feasibility study, exploration and evaluation assets attributable to that area of interest are first tested for impairment and the balance is reclassified as a development asset in property, plant, and equipment. Recoverability of the carrying amount of any exploration and evaluation asset is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. It is management’s judgment that none of the Company’s exploration and evaluation assets have reached the development stage and as a result are all considered to be exploration and evaluation assets. Although the Company has taken steps to verify title to mineral properties in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property may be subject to unregistered prior agreements and non-compliance with regulatory requirements. The Company is not aware of any disputed claims of title. (d) Provision for closure and reclamation The Company recognizes statutory, contractual, or other obligations related to the retirement of its exploration assets and its tangible long-lived assets when such obligations are incurred, if a reasonable estimate of fair value can be made. These obligations are measured --- initially at fair value and the resulting costs are capitalized to the carrying value of the related asset. In subsequent periods, the liability is adjusted for any changes in the amount or timing and for the discounting of the underlying future cash flows. The capitalized asset retirement cost is amortized to operations over the life of the asset. Management has determined that there was no provision for closure and reclamation as at June 30, 2025 and December 31, 2024. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 10 3. Material accounting policies (continued) (e) Impairment of non-financial assets Impairment tests on non-financial assets, including exploration and evaluation assets, are performed whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the asset’s cash-generating unit, which is the lowest group of assets in which the asset belongs for which there are separately identifiable cash inflows that are largely independent of the cash inflows from other assets. Each of the Company’s exploration and evaluation properties is considered to be a cash-generating unit for which impairment testing is performed. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash- generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior reporting periods. A reversal of an impairment loss is recognized immediately in profit or loss. (h) New accounting standard adopted in the current period and standards effective in future years. Classification of Liabilities as Current or Non-current (Amendments to IAS 1) – The amendments to IAS1 provide a more general approach to the classification of liabilities based on the contractual arrangements in place at the reporting date. These amendments are effective for reporting periods beginning on or after January 1, 2024 and did not have a material impact to the Company. IFRS 18 Presentation and Disclosure in Financial Statements – IFRS 18 introduces three sets of new requirements to give investors more transparent and comparable information about companies’ financial performance for better investment decisions. 1. Three defined categories for income and expenses – operating, investing or financing – to improve the structure of the income statements, and require all companies to provide new defined subtotals, i --- ncluding operating profit; 2. Requirement for companies to disclose explanations of management-defined performance measures (MPMs) that are related to the income statement; and 3. Enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. This new standard is effective for reporting periods beginning on or after January 1, 2027. The Company will be evaluating the impact of the above amendments on its financial statements. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 11 4. Exploration and evaluation assets During the year ended December 31, 2024, the Company recognized an impairment of $4,951,179 related to the Meadowbank project. This accounting measure was triggered by the Company’s inability to raise sufficient financing for continuation of the exploration at the Meadowbank project. As a result, the Company impaired the property to $nil. Despite the property being in good standing, the Company does not have any plans to further explore the property at this time. Title to exploration and evaluation properties involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristics of many such assets. The Company has investigated title to all of its mineral properties, and to the best of its knowledge, title to all such assets is in good standing. Meadowbank Project At June 30, 2025, the Company holds the mineral rights to property in Nunavut, Canada, namely the Meadowbank Project. At June 30, 2025, the following costs are capitalized as exploration and evaluation assets: Balance Six months ended Balance Exploration Costs - Nunavut December 31, 2024 June 30, 2025 June 30, 2025 Acquisition costs Recording and staking fees 182,658 $ - $ 182,658 $ Exploration costs 43-101 Technical Report 62,176 - 62,176 Drilling 700,855 - 700,855 Field supplies and expenses 1,235,242 - 1,235,242 Geological services 1,212,706 - 1,212,706 GeoPhysical surveys 637,988 - 637,988 Laboratory analysis 269,199 - 269,199 Logistics 459,967 - 459,967 Travel 190,388 - 190,388 4,768,521 - 4,768,521 Total Exploration Costs 4,951,179 $ - 4,951,179 $ Impairment (4,951,179) - (4,951,179) Total Exploration Costs - $ - $ - $ SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 12 5. Supplemental cash flow information (a) The Company made no cash outlays in respect of interest or income taxes for the three months ended June 30, 2025, or the year ended December 31, 2024. (b) As at June 30, 2025, the Company had $13,139 in accounts payable and accrued liabilities (December 31, 2024 - $13,139) which were related to the exploration of the mineral properties. (c) During the three months ended June 30, 2025, no RSU’s were issued (during the year ended December 31, 2024, the Company settled 3,300,000 of RSU’s, with a fair value of $0.02 per share, a total of $66,000, that were granted in 2023). (d) During the three months ended June 30, 2025, no loans payable were settled (during the year ended December 31, 2024, the Company settled a $30,000 loan payable with 2,000,000 common shares. 6. Share capital (a) Authorized Unlimited number of common voting shares without par value. --- (b) Issued during the three months ended June 30, 2025 No shares were issued during the three months ended June 30, 2025. (c) Issued during the year ended December 31, 2024 On April 17, 2024, 3,300,000 Restricted Share Units (“RSU’s”) were settled for a total of 3,300,000 common shares and $66,000 was reallocated from reserves to share capital. On May 22, 2024, 2,000,000 common shares were issued to settle a $30,000 loan payable signed by the Company with its CEO. (Note 8) (d) Stock options The Company has a stock option plan that provides for the issuance of compensatory options to its directors, officers, employees, and consultants. The maximum number of outstanding options must be no more than 10% of the issued and outstanding shares at any point in time. Options granted under the plan may have a maximum term of ten years. Terms of the vesting period over which the options are earned are determined by the Board of Directors. No stock options were granted during the three months ended June 30, 2025, or during the year ended December 31, 2024. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 13 6. Share capital (continued) (d) Stock options (continued) The continuity of share purchase options at June 30, 2025, is as follows: Exercise Price Expiry Date December 31, 2024 Granted Exercised Expired June 30, 2025 $0.05 02-May-25 500,000 - - (500,000) - $0.32 01-Sep-26 232,500 - - - 232,500 732,500 - - (500,000) 232,500 As at June 30, 2025, there were 232,500 vested options with a weighted average exercise price of $0.32. The weighted average remaining contractual life of the vested options is 14 months. (e) Warrants As at June 30, 2025, and December 31, 2024, there were no outstanding warrants. (f) Long-Term Incentive Plan On January 7, 2022, at the Company’s Annual General and Special Meeting of Shareholders, the shareholders approved a 10% fixed Long-Term Incentive Plan (“LTIP”). The plan provides for the grant of Restricted Share Units and Deferred Share Units to eligible persons as described in the Plan. The LTIP had 11,607,840 shares reserved for distribution. On February 1, 2022, 1,400,000 RSU’s were distributed to directors of the Company. The shares distributed were valued at $0.07 per share, which was the market value on the date issued, for a total of $98,000. On May 2, 2023, 300,000 RSU’s were granted and distributed to a director of the Company. The shares distributed were valued at $0.02 per share, which was the market value on the date issued, for a total of $6,000. On November 14, 2023, 3,300,000 RSU’s were granted to directors and officers of the Company. The shares distributed were valued at $0.02 per share, which was the market value on the date issued, for a total of $66,000. No RSU’s were granted during the three months ended June 30, 2025, or during the year ended December 31, 2024. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 14 6. Share capital (continued) RSU's available December 31, 2022 10,207,840 Granted during 2023 (3,600,000) Granted during 2024 - Granted during 6 months ended June 30, 2025 - RSU's available June 30, 2025 6,607,840 7. Related party transactions During the six months ended June 30, 2025, the Company did not incur or accrue any fees for management, general business and financial advisory serv --- ices and salaries to an officer of the Company and to a company controlled by an officer of the Company (six months ended June 30, 2024 - $140,400 was accrued). The current economic downturn and unprecedented market conditions have adversely affected the ability of the Company to access the market capital to finance its operations. In order to reduce the cash outflow and limit layoffs, employees and contractors have voluntarily agreed to defer salaries and fees until the closing of a new financing or the monetization of the Company’s assets. At June 30, 2025, $488,392 (December 31, 2024, $488,392) of deferred salaries and fees have been accrued to related parties. As at June 30, 2025, $42,467 (December 31, 2024, $42,467) of expenses were due to related parties included in accounts payables. 8. Loan payable During the year ended December 31, 2024, the Company entered into three separate loan segments with the CEO. Loan segment one is for $30,000 at an interest rate of 2.3% per annum, payable in cash and a repayment date of March 27, 2024. On May 21, 2024, a convertible loan agreement was entered into which settled the outstanding principal plus interest by the issuance of 2,000,000 common shares at a fair value of $0.015 (Note 6(c). Loan segment two is for $84,000 at an interest rate of 2.3% per annum, payable in cash and a repayment date of February 21, 2025. Subsequent to the year-end, an extension agreement was entered into which extended the maturity date of the loan to February 21, 2026. Loan segment three is for $40,000 at an interest rate of 3.62% per annum, payable in cash and a repayment date of July 5, 2025. Subsequent to year-ended December 31, 2024, an extension agreement was entered into which extended the maturity date of the loan to February 21, 2026. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 15 9. Segmented information The Company operates in one reportable operating segment in one country, being the exploration of mineral resource properties in Canada. 10. Financial risk management The Company has exposure to the following risks from its use of financial instruments: • Credit risk • Liquidity risk • Market risk The Board of Directors approves and monitors the risk management processes. Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company’s exposure to credit risk is on its cash and cash equivalents and accounts receivable. The Company manages credit risk in respect of cash and cash equivalents by holding these at a major Canadian financial institution. The carrying amounts of cash and cash equivalents, and accounts receivable represent the maximum credit exposure. Liquidity risk Liquidity risk is the risk that the Company will incur difficulties meeting its financial obligations as they are due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions without incurring unacceptable losses or risking harm to the Company’s reputation. The Company does not currently have adequate liquidity to fund all its accounts payable, accrued liabilities, and loans payable from existing resources. Accordingly, the Company will be reliant on equity financing to meet its --- obligations as they come due. The accrued compensation will be settled by the issue of common shares. The Company’s accounts payable are due within 90 days of June 30, 2025. The accrued compensation is unsecured, non-interest bearing, and have no specific repayment terms. Market risk Market risk consists of foreign exchange risk and interest rate risk. The objective of market risk management is to manage and control market risk exposures within acceptable limits, while maximizing returns. Interest rate risk Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. The balances are held with a major financial institution and market risk is not considered significant. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 16 10. Financial risk management (continued) Foreign exchange risk Foreign exchange risk is the risk that the fair value of future cash flows will fluctuate as a result of changes in foreign exchange rates. The Company has an exposure to US dollars (“USD”) that is subject to fluctuations as a result of exchange rate variations to the extent that transactions are made in this currency. The Company does not hedge its foreign exchange risk. Sensitivity to a plus or minus 10% change in the foreign exchange rate of the US dollar to the Canadian dollar would affect the reported loss at June 30, 2025, by approximately $2,720 (December 31, 2024 - $60). Valuation of financial instruments All financial instruments measured at fair value are categorized into one of three hierarchy levels, described below, for disclosure purposes. Each level is based on the transparency of the inputs used to measure the fair values of assets and liabilities: • Level 1 – Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2 – Values based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability; and • Level 3 – Values based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable and accrued liabilities approximate their fair values because of the short period to maturity of these instruments. 11. Capital management The Company manages its capital to ensure that there are adequate capital resources to safeguard the Company’s ability to continue as a going concern through the optimization of its capital structure. The capital structure consists of shareholders’ equity comprising of share capital, equity reserves and deficit. The basis for the Company’s capital structure is dependent on the Company’s expected business growth and changes in the business environment. In order to facilitate the management of capital and the exploration of its mineral properties, the Company prepares annual expenditure budgets which are updated as necessary and are reviewed and periodically approved by the Company’s Board of Directors. To maintain or adjust the capital structure, the Company may issue new equity, option its mineral properties for cash and/or expenditure commitments from optionees, enter into joint venture arrangements, or dispos --- e of mineral properties. The Company’s investment policy is to hold excess cash in interest bearing bank accounts and money market funds. The Company is not subject to externally imposed capital requirements. There have been no changes made to the capital management policy during the period. SEASIF EXPLORATION INC. Notes to the Consolidated Financial Statements For the six months ended June 30, 2025 and 2024 (expressed in Canadian dollars) 17 12. Transfer to NEX On May 8, 2025, the TSX Venture Exchange suspended trading in the Company’s securities as a result of a Cease Trade Order issued by the British Columbia Securities Commission for failure to file its audited financial statements and related continuous disclosure documents. 13. Comparative figures Certain comparative figures have been reclassified to conform to the financial statement presentation for the current period. 14. Subsequent Events On September 23, 2025, the shares of the Company were transferred from the TSX Venture Exchange to the NEX, a separate board of the TSX Venture Exchange. On October 24, 2025, the Company received total proceeds of $120,000 from two arm’s-length private investors in exchange for the future issuance of 6,000,000 common shares of the Company. The proceeds will be used to facilitate the lifting of the cease trade order and to support the reinstatement of trading of the Company’s shares.