SEDAR Interim Financial Statements

PEGMATITE ONE LITHIUM AND GOLD CORP. Condensed Interim Consolidated Financial Statements For the six months ended February 28, 2026 Expressed in Canadian Dollars (Unaudited – Prepared by Management) NOTICE TO READER Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated financial statements, they must be accompanied by a notice indicating that the condensed interim consolidated 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 management. The unaudited condensed interim consolidated financial statements have been prepared using accounting policies in compliance with IAS 34, Interim Financial Reporting (“IAS 34”), using policies consistent with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Boards (“IASB”). The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of condensed interim consolidated financial statements by an entity's auditor. PEGMATITE ONE LITHIUM AND GOLD CORP. Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian dollars) (Unaudited – Prepared by Management) The accompanying notes are an integral part of these condensed interim consolidated financial statements. February 28, 2026 August 31, 2025 ASSETS Current assets Cash $ 4,202 $ 7,744 Amounts recoverable 3,402 4,841 Marketable securities (Note 5) - 14,008 Prepaid expenses - 1,680 $ 7,604 $ 28,273 LIABILITIES AND SHAREHOLDERS’ DEFICIENCY Current liabilities Accounts payable and accrued liabilities (Note 8) $ 427,064 $ 515,427 Shareholders' deficiency Share capital (Note 7) 2,651,229 2,429,406 Reserves (Note 7) 363,096 363,096 Deficit (3,433,785) (3,279,656) (419,460) (487,154) $ 7,604 $ 28,273 Nature and continuance of operations (Note 1) Approved by the Board of Directors and authorized for issue on April 24,2026: “Ross Mitgang” Director “Binyomin Posen” Director Ross Mitgang Binyomin Posen PEGMATITE ONE LITHIUM AND GOLD CORP. Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars) (Unaudited – Prepared by Management) The accompanying notes are an integral part of these condensed interim consolidated financial statements. Three months ended February 28, 2026 Three months ended February 28, 2025 Six months ended February 28, 2026 Six months ended February 28, 2025 EXPENSES Consulting fees (Note 8) $ 33,000 $ 3,000 $ 56,000 $ 6,000 Filing and transfer agent fees 9,209 5,165 12,722 8,170 Management fees (Note 8) 24,000 24,000 48,000 48,000 Office and miscellaneous 2,248 3,466 2,896 5,341 Professional fees 14,866 21,786 35,946 37,286 Shareholder information - 385 - 385 (83,323) (57,802) (155,564) (105,182) Change in fair value of marketable securities (Note 5) - (6,730) 13,758 (16,695) Loss on debt settlement (Note 5) - - (12,323) - Loss and comprehensive loss for the period $ (83,323) $ (64,532) $ (154,129) $ (121,877) Weighted average number of outstanding common shares – basic and diluted 6,011,221 3,546,513 5,371,214 3,546,513 Basic and diluted loss per common share $ (0.01) $ (0.02) $ (0.03) $ (0.03) PEGMATITE ONE LITHIUM AND GOLD CORP. Condensed I --- nterim Consolidated Statements of Changes in Shareholders' Deficiency (Expressed in Canadian dollars) (Unaudited – Prepared by Management) The accompanying notes are an integral part of these condensed interim consolidated financial statements. Number of shares Amount Option Reserves Warrant Reserves Deficit Total Balance, August 31, 2024 3,546,513 $ 2,429,406 $ 184,215 $ 178,881 $ (2,615,643) $ 176,859 Loss for the period - - - - (121,877) (121,877) Balance, February 28, 2025 3,546,513 2,429,406 184,215 178,881 (2,737,520) 54,982 Loss for the period - - - - (542,136) (542,136) Balance, August 31, 2025 3,546,513 2,429,406 184,215 178,881 (3,279,656) (487,154) Shares issued for debt settlement 2,464,708 221,823 - - - 221,823 Loss for the period - - - - (154,129) (154,129) Balance, February 28, 2026 6,011,221 $ 2,651,229 $ 184,215 $ 178,881 $ (3,433,785) $ (419,460) PEGMATITE ONE LITHIUM AND GOLD CORP. Condensed Interim Consolidated Statements of Cash Flows (Expressed in Canadian dollars) (Unaudited – Prepared by Management) Six months ended February 28, The accompanying notes are an integral part of these condensed interim consolidated financial statements. 2026 2025 CASH FLOW USED IN OPERATING ACTIVITIES Loss for the period $ (154,129) $ (121,877) Items not involving cash: Change in fair value of marketable securities (13,758) 16,695 Loss on debt settlement 12,323 - Changes in non-cash working capital items: Amounts recoverable 1,439 (142) Accounts payable and accrued liabilities 64,437 23,410 Due to related parties 56,700 56,700 Prepaid expenses 1,680 - Net cash used in operating activities (31,308) (25,214) CASH FLOW USED IN INVESTING ACTIVITIES Proceeds from sale of marketable securities 27,766 - Net cash provided by investing activities 27,766 - Change in cash during the period (3,542) (25,214) Cash, beginning of period 7,744 37,795 Cash, end of period $ 4,202 $ 12,581 SUPPLEMENTAL CASH FLOW INFORMATION Interest received $ - $ - Interest paid $ - $ - Exploration and evaluation assets included in accounts payable and accrued liabilities $ - $ 41,063 PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 1. Nature and continuance of operations Pegmatite One Lithium and Gold Corp. (the “Company”) was incorporated on March 4, 2021 under the laws of the Province of British Columbia, Canada, and its principal activity is the acquisition and exploration of mineral properties in Canada. The Company’s registered office and its corporate office and principal place of business is Suite 250 – 750 West Pender Street, Vancouver, BC, V6C 2T7. The Company is listed on the Canadian Securities Exchange (the “CSE”) under the trading symbol “PGA” The Company is in the business of exploring its mineral exploration assets and has not yet determined whether these properties contain ore reserves that are economically recoverable. As at February 28, 2026, the Company was in the exploration stage and had interests in properties in Canada. On July 3, 2025, the Company consolidated its common shares on a ten for one basis. These condensed interim consolidated financial statements reflect the share consolidation on a retrospective basis. Going concern These condensed interim consolidated financial statements have been prepared on a going concern basis, which presumes the realization of assets and discharg --- e of liabilities in the normal course of business for the foreseeable future. The ability of the Company to continue as a going concern and the recoverability of the amounts shown for exploration and evaluation assets are dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development, and upon future profitable production or proceeds from the disposition thereof. The Company has sustained losses from operations and expects to incur further losses in the development of its business and has an ongoing requirement for capital investment to explore its exploration and evaluation of assets. As at February 28, 2026, the Company had a working capital deficiency of $419,460 (August 31, 2025 - $487,154). Based on its current plans, budgeted expenditure, and cash requirements, the Company does not have sufficient cash to finance its current plans. These material uncertainties may cast substantial doubt about the Company’s ability to continue as a going concern. The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and to commence profitable operations in the future and repay its liabilities arising from normal business operations as they become due. The Company expects that it will need to raise substantial additional capital to accomplish its business plan over the next several years. The Company expects to seek additional financing through equity financing. There can be no assurance as to the availability or terms upon which such financing might be available. The Company’s business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, tariffs, 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 create further uncertainty and risk with respect to the prospects of the Company’s business. These condensed interim consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities, the reported expenses, and the statement of financial position classifications used, that would be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 2. Basis of preparation The condensed interim consolidated financial statements were authorized for issue on April 24, 2026 by the directors of the Company. Statement of compliance The condensed interim consolidated financial statements of the Company have been prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and in accordance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting”. Basis of preparation The condensed interim consolidated financial statements of the Company have been prepared on an accrual basis and are based on historical costs, except for financial instruments classified as fair value through profit or loss (“FVTPL”), which are stated at their fair value. The condensed int --- erim consolidated financial statements are presented in Canadian dollars unless otherwise noted. Basis of consolidation These condensed interim consolidated financial statements include the accounts of the Company and its subsidiary as at February 28, 2026. Where the Company has the power, either directly or indirectly, to govern the financial and operating policies of another entity or business so as to obtain benefits from its activities, it is classified as a subsidiary. The condensed interim consolidated financial statements present the results of the Company and its subsidiary as if they formed a single entity. All inter-company transactions and balances between the companies are therefore eliminated in full. The Company incorporated a wholly-owned subsidiary, 1000256194 Ontario Ltd., on July 12, 2022 in the Province of Ontario. This entity was later amalgamated with Casey Jones Lithium Inc. (“Casey”) into one company, under the name 1000279021 Ontario Ltd., to acquire a mineral exploration property. The Company holds a 100% interest in 1000279021 Ontario Ltd. These condensed interim consolidated financial statements include the accounts of 1000279021 Ontario Ltd. 3. Significant accounting judgments and estimates The preparation of the condensed interim consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, revenue and expenses. Significant accounting judgments Information about critical judgments in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the condensed interim consolidated financial statements are discussed below: i) Going concern The assessment of the Company’s ability to continue as a going concern involves judgment regarding future funding available for its exploration projects and working capital requirements. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 3. Significant accounting judgements and estimates (continued) ii) Exploration and evaluation assets The assessment of impairment indicators under IFRS 6, if any, of the exploration and evaluation assets requires significant judgment. The recovery amount of the exploration and evaluation assets requires significant estimate. Significant accounting estimates The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Management believes the estimates are reasonable; however, actual results could differ from those estimates and could impact future results of operations and cash flows. There are no significant accounting estimates at February 28, 2026 which impact the carrying value of assets and liabilities. 4. Material accounting policies Foreign currency translation These condensed interim consolidated financial statements are presented in Canadian dollars which are both the Company and the subsidiary’s functional and presentation currency. Transactions in foreign currencies are translated at rates in effect at --- the time of the transaction. Monetary assets and liabilities are translated at the exchange rate prevailing at the reporting date. Gains and losses are included in profit or loss. Exploration and evaluation assets Costs incurred before the Company has obtained the legal rights to explore an area are expensed in the period in which they are incurred. Costs incurred to acquire the legal right to explore a property are capitalized. Once the legal right to explore a property has been acquired, costs directly related to exploration and evaluation expenditures are recognized and capitalized on a property-by-property basis. These direct expenditures include costs such as surveying costs, drilling costs, labor and contractor costs, materials used and licensing and permit fees. Government tax credits received are recorded as a reduction to the cumulative costs incurred and capitalized on the related property upon receipt when collection is assured. Once the technical feasibility and commercial viability of extracting the mineral resource have been determined, the property is considered to be under development and is classified as development properties. The carrying value of exploration and evaluation assets is transferred to development properties after being tested for impairment. Once commercial production has commenced, all capitalized costs related to the property are transferred to producing properties and the costs of acquisition, exploration and development will be amortized over the life of the property based on estimated economic reserves. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 4. Material accounting policies (continued) Exploration and evaluation assets (continued) Proceeds received from the sale of any interest in a property will be credited against the carrying value of the property, with any excess included in other income for the period. If a property is abandoned, the acquisition, deferred exploration and development costs will be written off to other expenses. Although the Company has taken steps to verify title to mineral properties in which it has an interest, in accordance with industry norms for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to unregistered prior agreements or inadvertent non-compliance with regulatory requirements. Exploration costs renounced due to flow-through share subscription agreements remain capitalized; however, for corporate income tax purpose the Company has no right to claim these costs as tax deductible expenses. Recorded costs of mineral properties and deferred exploration costs are not intended to reflect present or future values of resource properties. The recorded costs are subject to measurement uncertainty and it is reasonably possible, based on existing knowledge that changes in future conditions could require a material change in the recognized amount. Payments on mineral property option agreements are made at the discretion of the Company and, accordingly, are recorded as incurred. When a project is deemed to no longer have commercially viable prospects to the Company, exploration and evaluation expenditures in respect of that project are deemed to be impaired. As a result, those exploration and evaluation expenditure costs, --- in excess of estimated recoveries, are written off to profit or loss. The Company assesses exploration and evaluation assets for impairment when facts and circumstances suggest that the carrying amount of an asset may exceed its recoverable amount. Decommissioning liabilities An obligation to incur decommissioning and site rehabilitation costs occurs when environmental disturbance is caused by exploration, evaluation, development or ongoing production. Decommissioning and site rehabilitation costs arising from the installation of plant and other site preparation work, discounted to their net present value, are provided when the obligation to incur such costs arises and are capitalized into the cost of the related asset. These costs are charged against operations through depreciation of the asset and unwinding of the discount on the provision. Depreciation is included in operating costs while the unwinding of the discount is included as a financing cost. Changes in the measurement of a liability relating to the decommissioning or site rehabilitation of plant and other site preparation work are added to, or deducted from, the cost of the related asset. The costs for the restoration of site damage, which arises during production, are provided at their net present values and charged against operations as extraction progresses. Changes in the measurement of a liability, which arises during production, are charged against profit or loss. The discount rate used to measure the net present value of the obligations is the pre-tax rate that reflects the current market assessment of the time value of money and the risks specific to the obligation. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 4. Material accounting policies (continued) Impairment At the end of each reporting period, the Company’s assets are reviewed to determine whether there is any indication that those assets may be impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. 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 year. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs. 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 years. A reversal of an impairment loss is recognized im --- mediately in profit or loss. Share capital The Company engages in equity financing transactions to obtain the funds necessary to continue operations and explore and evaluate resource properties. These equity financing transactions may involve issuance of common shares or units. A unit comprises a certain number of common shares and a certain number of share purchase warrants. Depending on the terms and conditions of each equity financing agreement, the warrants are exercisable into additional common shares prior to expiry at a price stipulated by the equity financing agreement. Warrants that are part of units are valued using the residual value method which involves comparing the selling price of the units to the Company’s share price on the announcement date of the financing. The market value is then applied to the common share, and any residual amount is assigned to the warrants. Warrants that are issued as payment for agency fee or other transaction costs are accounted for as share-based payments and are recognized in equity. When warrants are forfeited or are not exercised at the expiry date, the amount previously recognized in equity remains in warrant reserves. In situations where share capital is issued, or received, as non-monetary consideration and the fair value of the asset received, or given up is not readily determinable, the fair market value (as defined) of the shares is used to record the transaction. The fair market value of the shares issued, or received, is based on the trading price of those shares on the appropriate exchange on the date the shares are issued. Share issuance costs Share issue costs are deferred and charged directly to share capital on completion of the related equity financing. If the financing is not completed, share issue costs are charged to profit or loss. Costs directly identifiable with the raising of capital will be charged against the related share capital. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 4. Material accounting policies (continued) Flow-through shares and units The Company has from time to time, issued flow-through common shares and units to finance its exploration program. Pursuant to the terms of the flow-through agreements, these shares and units transfer the tax deductibility of qualifying resource expenditures to investors. At the time of closing a financing involving flow-through units consisting of common shares and warrants, the Company allocates proceeds received as follows: i) share capital – the market trading price of the common shares, ii) flow-through share premium – equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability, and iii) warrant reserve – any excess. Proceeds received from the issuance of flow-through shares must be used only for Canadian resource property exploration expenditures within a two-year period. The Company may also be subject to a Part XII.6 tax on flow-through proceeds renounced under the look- back rule, in accordance with Canada Revenue Agency flow-through regulations. When applicable, this tax is accrued as a financial expense. Earnings (loss) per share Earnings (loss) per share is calculated on the basis of the weighted average number of common shares outstanding during the period. The Company follows the treas --- ury share method to calculate the dilutive effect of options, warrants and similar instruments. Under this method, the dilutive effect on earnings per share is recognized on the use of the proceeds that could be obtained upon exercise of options, warrants and similar instruments. It assumes that the proceeds would be used to purchase common shares at the average market price during the period. For the period ended February 28, 2026, 50,000 options (August 31, 2025 – 50,000) and $Nil warrants (August 31, 2025 – 630,000) were not included in the calculation of diluted loss per share as their inclusion was anti-dilutive. Share-based payments When equity instruments are granted to non-employees, they are recorded at the fair value of the goods and services received, unless the fair value of the goods and services received cannot be reasonably measured, in which case they are measured using the fair value of the equity instruments issued. Expenses are recorded in profit or loss. Amounts related to the cost of issuing shares are recorded as a reduction of share capital. Amounts related to the issuance of shares for exploration and evaluation assets are capitalized in mineral interests on the Condensed interim consolidated statements of financial position. When the value of goods or services received in exchange for the share-based payment cannot be reliably estimated, the fair value is measured by using a valuation model. All equity-settled share-based payments are reflected in option reserves, until exercised. Upon exercise, shares are issued from treasury and the amount reflected in option reserves is credited to share capital, adjusted for any consideration paid. 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. If the options expire or are cancelled, the corresponding amount previously recorded remains in reserves. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 4. Material accounting policies (continued) Income taxes Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the condensed interim consolidated financial statements date, and includes any adjustments to tax payable or receivable in respect of previous years. Deferred income tax is recorded using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred inco --- me tax assets and liabilities and the related deferred income tax expense or recovery are recognized for deferred tax consequences attributable to differences between the condensed interim consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis, except for taxable temporary differences arising on the initial recognition of goodwill and temporary differences arising from the initial recognition of an asset or liability in a transaction that is not a business combination at the time of the transaction affects neither accounting nor taxable profit or loss and the transaction does not give rise to equal taxable and deductible temporary differences. Deferred income tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that substantive enactment occurs. Financial instruments Financial instruments classified at fair value through profit or loss ("FVTPL") are measured at fair value. Financial instruments classified at amortized cost are initially measured at fair value and subsequently measured at amortized cost using the effective interest rate method. A summary of the classification and measurement of the Company’s financial instruments is set out below. Classification Financial Assets Cash FVTPL Marketable securities FVTPL Financial Liabilities Accounts payable and accrued liabilities Amortized cost PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 4. Material accounting policies (continued) Accounting standards issued but not yet effective A number of new standards, and amendments to standards and interpretations, are not effective and have not been early adopted in preparing these condensed interim consolidated financial statements. The following accounting standards and amendments are effective for future periods: IFRS 18 – Presentation and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements. This standard aims to improve the consistency and clarity of financial statement presentation and disclosures by providing updated guidance on the structure and content of financial statements. Key changes include enhanced requirements for the presentation of financial performance, financial position, and cash flows, as well as additional disclosures to improve transparency and comparability. IFRS 18 is effective for annual reporting periods beginning on or after January 1, 2027. The Company will assess the impact that the adoption of IFRS 18 will have on its condensed interim consolidated financial statements. 5. Marketable securities During the year ended August 31, 2024, the Company received 1,200,000 shares (valued at $34,808) of Thunderbird Resources Limited (“Thunderbird”) (formerly Valor Resources Limited) for Frazer Lake-Mound Property. During the period ended February 28, 2026, the Company sold all the shares and received proceeds of $27,766. The Company recognized a change in fair value of $13,758 (2025 - $16,695). Number of Thunderbird Common shares Total As of August 31, 2024 1,200,000 $ 32,941 Change in fair value - (18,933) A --- s of August 31, 2025 1,200,000 14,008 Change in fair value - 13,758 Disposal (1,200,000) (27,766) As of February 28, 2026 - $ - PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 6. Exploration and evaluation assets Georgina Property (British Columbia) On March 29, 2021, the Company entered into an option agreement to acquire up to a 75% interest in a mining claim in the Nanaimo Mining Division, British Columbia. During the period ended August 31, 2021, the Company acquired 51% interest in the property by the issuance of 10,000 common shares and paid $5,000 in cash to the vendor. The Company earned the remaining 24% of the total 75% interest by making the following payments as follows: i) $10,000 on or before March 29, 2022 (paid); ii) 10,000 common shares on or before the date that is six months from the date of the initial listing of the Company’s shares on the CSE (issued at a value of $5,500); and iii) exploration expenditures of $200,000 (incurred). The property is subject to a net smelter royalty of 2% payable to the vendor. The Company received $21,002 mining tax credits during the year ended August 31, 2024. During the year ended August 31, 2025, the Company had no further plan to explore the property which is an indicator of impairment under IFRS 6, resulting in an assessment of the property’s recoverable amount. Due to uncertainty in recoverability, the Company has written off the property in full, recognizing an impairment loss of $213,235 during the year ended August 31, 2025. Morrison River Property (Ontario) On August 8, 2022, the Company entered into an agreement to acquire a 100% interest in the Morrison River Property through the acquisition of 100% of the common shares of a privately held company that owns the property. During the year ended August 31, 2022, the Company issued 1,200,000 common shares (issued at a value of $1,366,000); and paid other transaction costs of $24,379 related to acquiring the privately held company through amalgamation. During the year ended August 31, 2023, the Company determined it would no longer explore the property which is an indicator of impairment under IFRS 6, resulting in an assessment of the property’s recoverable amount. As such, the Company has written off the property in full, recognizing an impairment loss of $1,446,659 during the year ended August 31, 2023. During the year ended August 31, 2024, the Company entered into a non-binding agreement with Thunderbird Resources Limited (“Thunderbird”) (formerly Valor Resources Limited) whereby Thunderbird has an option to acquire a 100% interest in the property. Effective March 20, 2024, Thunderbird consolidated its common shares on a 25:1 basis. All share and per share amounts in the condensed interim consolidated financial statements have been retroactively restated to reflect the share consolidation for Thunderbird. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 6. Exploration and evaluation assets (continued) Morrison River Property (Ontario) (continued) Pursuant to the agreement, Thunderbird will acquire the property by paying total cash consideration of AUD$80,000 cash (or 800,000 ordinary shares in the c --- apital of Thunderbird (each a "Thunderbird Share"), at Thunderbird's election) and 10,000,000 Thunderbird Shares, as follows: i) AUD$20,000 cash or 200,000 Thunderbird Shares, at Thunderbird’s election, on the earlier of: a) upon execution of a definitive agreement; or b) December 31, 2023, or extended to the date when the Company has completed their due diligence on Thunderbird. ii) AUD$30,000 cash or 300,000 Thunderbird Shares, at Thunderbird’s election, on the earlier of: a) upon commencement of on ground field-based exploration activities; or b) June 1, 2024. iii) AUD$30,000 cash or 300,000 Thunderbird Shares on or before the 3rd month anniversary from the commencement of on ground field-based exploration activities. iv) 10,000,000 Thunderbird Shares on or before September 30, 2024, if Thunderbird elects to proceed with the acquisition of 100% interest. The Company will be granted a 2% NSR for the property, which Thunderbird can repurchase for 1% for $2,250,000. The agreement contains customary representations, warranties and covenants including a termination fee to be paid by the Company to Thunderbird of up to AUD$100,000 upon various termination events. The Company received $25,000 cash to tenure the property during the due diligence process. During the year ended August 31, 2025, the option agreement with Thunderbird to acquire the property was terminated. Frazer Lake-Mound Property (Ontario) On June 28, 2023, and amended on December 4, 2023, the Company entered into an option agreement to acquire a 100% interest in the Frazer Lake-Mound Property, Ontario, Canada. Pursuant to the agreement, the Company will acquire 100% interest in the property by paying the following considerations: i) $1 on June 28, 2023 (paid); and ii) $25,000 on or before August 8, 2026 (paid). iii) Issue 700,000 warrants on or before July 5, 2023 (issued at a fair value of $171,000). Each warrant will entitle the holder to acquire one common share of the Company at a price of $0.50 until June 28, 2025. iv) Issue 200,000 common shares on or before August 8, 2026. The Company will grant the optionor a royalty of 2.0% of net smelter returns from minerals mined and removed from the property, of which the Company may purchase 1.0% at any time by paying a total of $1,500,000 to the optionor. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 6. Exploration and evaluation assets (continued) Frazer Lake-Mound Property (Ontario) (continued) On August 8, 2023 and amended on August 14, 2023 and again on December 4, 2023, the Company entered into an agreement to acquire a 100% interest to an additional 383 mining claims in the vicinity of the Frazer Lake-Mound Property in northwestern Ontario, Canada Pursuant to the agreement, the Company will acquire 100% interest in the claims by making the payments as follows: i) $25,000 on or before August 8, 2026; and ii) issuance of 320,000 common shares on or before August 8, 2026. The Company will grant the optionor a royalty of 2.0% of net smelter returns from minerals mined and removed from the property, of which the Company may purchase 1.0% at any time by paying a total of $750,000 to the optionor. On February 10, 2024, the Company entered into a definitive agreement with Thunderbird whereby Thunderbird has an option to acquire a 100% interest in the property. Eff --- ective March 20, 2024, Thunderbird consolidated its common shares on a 25:1 basis. All share and per share amounts in the condensed interim consolidated financial statements have been retroactively restated to reflect the share consolidation for Thunderbird. Pursuant to the agreement, Thunderbird will acquire the property for total cash consideration of AUD$320,000 cash and 40,000,000 Thunderbird Shares, as follows: i) firm commitment of AUD$80,000 cash on February 10, 2024 (received at a value of $70,222). ii) firm commitment of AUD$120,000 cash or 1,200,000 Thunderbird Shares, at Thunderbird’s election (1,200,000 Thunderbird Shares received at a value of $34,808), on the earlier of: a) Upon commencement of on ground field-based exploration activities; or b) June 1, 2024. iii) AUD$120,000 cash or 1,200,000 Thunderbird Shares on or before the 3rd month anniversary from the commencement of on ground field-based exploration activities. iv) 40,000,000 Thunderbird Shares on or before September 30, 2024, if Thunderbird elects to proceed with the acquisition of 100% interest. The Company will be granted a 2% NSR for the property. The Company received $25,000 cash to tenure the property during the due diligence process. The agreement contains customary representations, warranties and covenants including a termination fee to be paid by the Company to Thunderbird of up to AUD$400,000 upon various termination events. During the year ended August 31, 2025, the option agreement with Thunderbird to acquire the property was terminated. During the year ended August 31, 2025, the Company had no further plan to explore the property which is an indicator of impairment under IFRS 6, resulting in an assessment of the property’s recoverable amount. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 6. Exploration and evaluation assets (continued) Frazer Lake-Mound Property (Ontario) (continued) Due to uncertainty in recoverability, the Company has written off the property in full, recognizing an impairment loss of $206,307 during the year ended August 31, 2025. 7. Share capital Authorized share capital Unlimited number of common shares without par value. Issuances During the period ended February 28, 2026, the Company issued 2,464,708 common shares at the fair value of $221,823 to settle accounts payable of $209,500, which resulted in a loss of $12,323 (Note 8). The total number of shares outstanding as of February 28, 2026 was 6,011,221 (August 31, 2025 – 3,546,513) with share capital of $2,651,229 (August 31, 2025 - $2,429,406). Stock options The Company adopted a stock option plan to grant options to individuals exercisable up to 10 years from the date of grant to purchase shares at the market price, less applicable discount, if any. Such grants not to exceed an aggregate of 10% of the issued and outstanding shares and vesting periods will be determined by the Board of Directors. Option pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate. The pricing models adopted by management do not necessarily provide a consistent single measure of the fair value of the Company’s share options and other share-based transactions. A summary of change in stock options --- is as follows: Number of Options Weighted average exercise price Balance, August 31, 2024 210,000 $ 0.72 Expired (160,000) 0.77 Balance August 31, 2025 and February 28, 2026 50,000 $ 0.55 As at February 28, 2026, the Company’s options had a weighted average remaining life of 1.79 years (August 31, 2025 – 2.28 years). PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 7. Share capital (continued) Stock options (continued) Details of options outstanding as at February 28, 2026 are as follows: Number of Options Exercise Price Expiry date Exercisable 50,000 $0.55 December 12, 2027 50,000 50,000 50,000 Warrants A summary of change in warrants is as follows: Number of Warrants Weighted average exercise price Balance, August 31, 2024 1,330,000 $ 0.74 Expired (700,000) 0.50 Balance, August 31, 2025 630,000 $ 1.00 Expired (630,000) 1.00 Balance, February 28, 2026 - $ - 8. Related party transactions Key management compensation Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of members of the Company's Board of Directors and corporate officers. The remuneration of directors and key management personnel made during the period is as follows: Six months ended February 28, 2026 Six months ended February 28, 2025 Consulting fees $ 6,000 $ 6,000 Management fees 48,000 48,000 Total $ 54,000 $ 54,000 PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 8. Related party transactions (continued) During the period ended February 28, 2026, the Company: i) paid or accrued management fees of $48,000 (2025 - $ 48,000) to the CEO of the Company. ii) paid or accrued consulting fees of $6,000 (2025 - $6,000) to the CFO of the Company. During the period ended February 28, 2026, the CEO of the Company assigned $209,500 to arm-length individuals who participated in the shares for debt settlement. As at February 28, 2026, due to related parties amounted to $72,100 (August 31, 2025 – $224,900) included in accounts payable and accrued liabilities on the condensed interim consolidated statements of financial position. These amounts are unsecured, non-interest bearing, and have no fixed terms of repayment. 9. Capital management The Company considers its capital structure to include net residual equity of all assets, less liabilities. The Company’s objectives when managing capital are to (i) maintain financial flexibility in order to preserve its ability to meet financial obligations and continue as a going concern; (ii) maintain a capital structure that allows the Company to pursue the development of its mineral properties; and (iii) optimize the use of its capital to provide an appropriate investment return to its shareholders commensurate with risk. The Company’s financial strategy is formulated and adapted according to market conditions in order to maintain a flexible capital structure that is consistent with its objectives and the risk characteristics of its underlying assets. The Company manages its capital structure and makes adjustments to it in light of changes in eco --- nomic conditions and the risk characteristics of its underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, acquire or dispose of assets, or adjust the amount of cash and cash equivalents and receivables. The Company is not subject to any externally imposed capital requirements. There have been no changes to the Company’s approach to capital management during the period ended February 28, 2026. 10. Financial instruments and risks The Company’s financial instruments are comprised of cash, marketable securities and accounts payable and accrued liabilities. The carrying value of accounts payable and accrued liabilities as presented in the condensed interim consolidated statements of financial position is a reasonable estimate of its fair value given its short term to maturity. Financial assets and liabilities measured at fair value on a recurring basis are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Certain non-financial assets and liabilities may also be measured at fair value on a non-recurring basis. There are three levels of the fair value hierarchy that prioritize the inputs to valuation techniques used to measure fair value, with Level 1 inputs having the highest priority. The levels and the valuation techniques used to value financial assets and liabilities are described below. There were no transfers between levels of the fair value hierarchy during the year. Level 1 – Quoted Prices in Active Markets for Identical Assets Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Cash and marketable securities are valued using quoted market prices in active markets. Accordingly, they are included in Level 1 of the fair value hierarchy. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 10. Financial instruments and risks (continued) Level 2 – Significant Other Observable Inputs Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Significant Unobservable Inputs Unobservable (supported by little or no market activity) prices. Financial Instrument Risks The Company’s financial instruments are exposed to certain financial risks, including credit risk, interest rate risk, price risk, liquidity risk and currency risk. a) Credit risk The Company is exposed to credit risk by holding cash. This risk is minimized by holding the investments in large Canadian financial institutions. b) Interest rate risk The Company is exposed to minimal interest rate risk. Fluctuations in market interest rates do not have a significant impact on the Company’s operations. c) Price risk The Company is exposed to price risk with respect to commodity and equity prices. Equity price risk is defined as the potential adverse impact on the Company’s earnings due to movements in individual equity prices or general movements in the level of the stock market. Commodity price risk is defined as the potential adverse impact on earnings and economic value due to commodity price movements and volatilities. The Company closel --- y monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company. The Company’s financial instruments include marketable securities which are publicly traded and therefore subject to the risks related to the fluctuation in market prices of publicly traded securities. Some of these investments have been acquired as a result of property transactions and, to a large extent, represent strategic investments in related mining companies and their properties. The Company closely monitors market values to determine the most appropriate course of action. d) Liquidity risk Liquidity risk is the risk that the Company is unable to meet its financial obligations as they come due. As at February 28, 2026, the Company manages this risk by monitoring its working capital to ensure its expenditures will not exceed available resources. As at February 28, 2026, the Company had cash of $4,202 (August 31, 2025 – $7,744) and a working capital deficiency of $419,460 (August 31, 2025 – $487,154). The Company may not be able to settle accounts payable and accrued liabilities of $427,064 (August 31, 2025 - $515,427). The Company will require financing from lenders, shareholders and other investors to generate sufficient capital to meet its short term business requirements. All of the Company’s financial liabilities have contractual maturities of 30 days or are due on demand and are subject to normal trade terms. PEGMATITE ONE LITHIUM AND GOLD CORP. Notes to the Condensed Interim Consolidated Financial Statements (Expressed in Canadian dollars) (Unaudited – Prepared by Management) For the six months ended February 28, 2026 10. Financial instruments and risks (continued) e) Currency risk Currency risk is the risk from fluctuations in foreign exchange rates and the degree of volatility of these rates. During the period ended February 28, 2026, the Company sold all the shares in Australian dollars; therefore, the exchange rate risk for the Company was immaterial.