SEDAR Interim Financial Statements

Argyle Resources Corp. Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 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 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 of Argyle Resources Corp. The Company’s independent auditor has not performed a review of these unaudited condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity’s auditor. Argyle Resources Corp. Unaudited Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian Dollars) The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements 3 Approved on behalf of the Board of Directors: “Jeffrey Stevens” “Bob Krause” Jeffrey Stevens, Director Bob Krause, Director As at November 30, 2025 As at February 28, 2025 $ $ Assets Current Assets Cash 981,636 2,420,653 Accounts receivable 67,647 112,208 Prepaid expenses (Note 4) 1,237,972 964,549 Total Current Assets 2,287,255 3,497,410 Exploration and evaluation assets (Note 5) 1,110,350 989,868 Total Assets 3,397,605 4,487,278 Liabilities Current Liabilities Accounts payable and accrued liabilities (Note 6) 130,393 169,555 Flow-through share liability (Note 7) 29,379 17,647 Total Liabilities 159,772 187,202 Shareholders' Equity Share capital (Note 8) 10,888,860 6,349,685 Reserve for warrants (Note 8) 2,115,990 1,566,210 Reserve for restricted share units (Note 8) 90,000 59,308 Contributed surplus (Note 8) 1,152,713 915,281 Accumulated deficit (11,009,730) (4,590,408) Total Shareholders' Equity 3,237,833 4,300,076 Total Liabilities and Shareholders' Equity 3,397,605 4,487,278 Nature of operations and going concern (Note 1) Commitments and contingencies (Note 12) Subsequent events (Note 13) Argyle Resources Corp. Unaudited Condensed Interim Consolidated Statements of Financial Position For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) The accompanying notes are an integral part of these unaudited condensed interim financial statements 4 Three-Month ended November 30, 2025 Three-Month ended November 30, 2024 Nine-Month ended November 30, 2025 Nine-Month ended November 30, 2024 $ $ $ $ Operating Expenses Professional fees (Note 9) 49,953 19,414 227,737 206,145 Consulting and director fees (Note 9) 49,869 50,499 145,070 199,071 Advertising and promotional expenses 4,153 1,067,303 2,508,463 1,512,526 General and administrative expenses 14,527 45,293 29,058 49,515 Exploration expenditures (Note 5) 2,199,093 324,761 2,621,545 412,970 Filing fees 22,743 19,346 71,131 65,357 Salaries and wages 6,683 6,684 20,048 18,553 Share-based compensation (Note 8 and 9) 1,107 671,596 879,382 782,130 Loss before Other Items (2,348,128) (2,204,896) (6,502,434) (3,246,267) Other Items Premium on flow-through shares (Note 7) 82,031 72,939 93,718 78,550 Interest income 4,763 5,580 16,323 20,962 Impairment of mine --- ral property (Note 5) - - - (18,000) Listing cost (3,659) (3,675) (11,202) (135,572) Foreign exchange gain (loss) 26 (14,087) (15,727) (16,343) Total Other Income (Expenses) 83,161 60,757 83,112 (70,403) Net loss (2,264,967) (2,144,139) (6,419,322) (3,316,670) Weighted Average Number of Outstanding Shares Basic and diluted (Note 8) 51,908,698 30,851,565 47,262,205 25,719,723 Net Loss per Share Basic and diluted (Note 8) (0.04) (0.07) (0.14) (0.13) Argyle Resources Corp. Unaudited Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements 5 Number of Shares Share Capital Reserve for warrants Reserve for restricted share units Contributed Surplus Accumulated Deficit Total # $ $ $ $ $ Balance, February 29, 2024 20,304,098 786,522 - - - (320,546) 465,976 Private placements (Note 8) 6,960,469 2,056,003 880,514 - - - 2,936,517 Unit issuance cost - (78,267) - - - - (78,267) Issuance of shares on Property Option (Note 5, 8) 750,000 75,000 - - - - 75,000 Issuance of shares on Warrants exercise (Note 8) 7,385,166 1,364,151 (99,784) - - - 1,264,367 Share-based compensation (Note 8) - - - 190,919 591,211 - 782,130 Net loss for the period - - - - - (3,316,670) (3,316,670) Balance, November 30, 2024 35,399,733 4,203,409 780,730 190,919 591,211 (3,637,216) 2,129,053 Balance, February 28, 2025 40,151,659 6,349,685 1,566,210 59,308 915,281 (4,590,408) 4,300,076 Private placements (Note 8) 8,008,658 2,728,799 784,001 - - - 3,512,800 Cash issuance cost (Note 8) - (137,047) (37,829) - - - (174,876) Broker warrants issued (Note 8) - (49,421) 49,421 - - - - Flow-through liability premium (Note 7, 8) - (105,450) - - - - (105,450) Issuance of shares on Property Option (Note 5, 8) 160,000 88,000 - - - - 88,000 Issuance of shares on Warrants exercise (Note 8) 3,787,832 1,271,036 (245,813) - - - 1,025,223 Issuance of shares on RSUs exercise (Note 8) 1,100,000 520,000 - (520,000) - - - Issuance of shares on Options exercise (Note 8) 300,000 223,258 - - (91,258) - 132,000 Share-based compensation (Note 8) - - - 550,692 328,690 - 879,382 Net loss for the period - - - - - (6,419,322) (6,419,322) Balance, November 30, 2025 53,508,149 10,888,860 2,115,990 90,000 1,152,713 (11,009,730) 3,237,833 Argyle Resources Corp. Unaudited Condensed Interim Consolidated Statements of Cash Flows For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements 6 Three-Month ended November 30, 2025 Three-Month ended November 30, 2024 Nine-Month ended November 30, 2025 Nine-Month ended November 30, 2024 $ $ Operating Activities Net loss for the Period (2,264,968) (2,144,139) (6,419,322) (3,316,670) Premium on flow-through shares (Note 7) (82,031) (72,939) (93,718) (78,550) Share-based compensation (Note 8) 1,107 671,596 879,382 782,130 Impairment of mineral property (Note 5) - - - 18,000 (2,345,892) (1,545,482) (5,633,658) (2,595,090) Changes in non-cash working capital items: Prepaid expenses 1,031,118 12,235 (273,423) (312,861) Deferred listing costs - - - 62,972 Accounts receivable 20,344 (40,177) 44,561 (58,916) Accounts payable and accrued liabilities (46,241) 71,018 (39,162) 124,628 Cash Flows used i --- n Operating Activities (1,340,671) (1,502,406) (5,901,682) (2,779,267) Investing Activities Payments for E&E Assets (Note 5) - - (32,482) (167,321) Cash Flows used in Investing Activities - - (32,482) (167,321) Financing Activities Private Placement Proceeds (Note 8) 500,000 999,998 3,512,800 3,135,648 Share issuance costs (Note 8) (31,054) (60,266) (174,876) (60,266) Proceeds from warrant exercise (Note 8) - 1,122,067 1,025,223 1,264,367 Proceeds from option exercise (Note 8) - - 132,000 - Cash Flows provided by Financing Activities 468,946 2,061,799 4,495,147 4,339,749 Increase in Cash (871,725) 559,393 (1,439,017) 1,393,161 Cash, beginning of Period 1,853,361 1,294,425 2,420,653 460,657 Cash, end of Period 981,636 1,853,818 981,636 1,853,818 Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 7 1. Nature of Operations and Going Concern Argyle Resources Corp. (“Argyle Resources” or the “Company”) was incorporated in British Columbia under the British Columbia Corporations Act on March 16, 2023. The Company’s head office is located 540 5 Ave SW, Suite 1410 Calgary, Alberta, T2P 0M2 and its registered and records office is located at 2300 – 550 Burrard Street, Vancouver, BC V6C 2B5. The Company’s common shares are listed on the Canadian Securities Exchange (the “CSE”) under the ticker symbol “ARGL.” The Company’s common shares are also listed in the United States (the “U.S.”) on the OTCQB® Venture Market under the ticker symbol “ARGLF,” and in Germany on the Frankfurt Stock Exchange under the ticker symbol “ME0”. The Company is in the process of exploring its exploration and evaluation properties and has not determined whether these properties contain mineral reserves which are economically recoverable. The recoverability of amounts shown for resource properties and related deferred costs is dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development and future profitable production from mining properties or proceeds from their disposition. These unaudited condensed interim consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities in the normal course of operations. The application of the going concern basis is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continuing operations, or, in the absence of adequate cash flows from operations, obtaining additional financing to support operations for the foreseeable future. During the three and nine months ended November 30, 2025, the Company incurred a net loss of $2,264,967 and $6,419,322 respectively (2024 – $2,144,139 and $3,316,670 respectively), and as of that date, the Company’s accumulated deficit was $11,009,729 (February 28, 2025 – accumulated deficit of $4,590,408). It is not possible to predict whether financing efforts will continue to be successful in the future or if the Company will attain profitable levels of operations. These conditions represent material uncertainties which may cast doubt on the Company’s ability to continue as a going concern. These unaudited condensed interim consolidated financial statements do not give effect to adjustments that w --- ould be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying financial statements. Such adjustments could be material. 2. Basis of Presentation (a) Statement of Compliance These unaudited condensed interim consolidated financial statements, including comparatives, have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS”). These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standards 34 – Interim Financial Reporting (“IAS 34”). These unaudited condensed interim consolidated financial statements were reviewed, approved, and authorized for issuance by the Board of Directors (the “Board”) of the Company on January 29, 2026. (b) Basis of Measurement These unaudited condensed interim consolidated financial statements have been prepared in accordance with IFRS, on the historical cost basis except for financial instruments which are measured at fair value, as explained in the material accounting policies set out in Note 3. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. (c) Basis of Consolidation These unaudited condensed interim consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Idaho Silica Corp. (“Idaho Silica”). Subsidiaries consist of entities over which the Company is exposed to, or has rights to, variable returns as well as the ability to affect those returns through the power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date control is transferred to the Company and are-deconsolidated from the date control ceases. The consolidated financial statements include all the assets, liabilities, revenues, expenses and cash flows of the Company and its subsidiaries after eliminating inter-entity balances and transactions. Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 8 2. Basis of Presentation (continued) (d) Functional Currency These unaudited condensed interim consolidated financial statements are presented in Canadian dollars (“$” or “CAD”), which is also the functional currency of the Company and Idaho Silica. The functional currency is the currency of the primary economic environment in which the Company operates. (e) Material Accounting Judgments, Estimates and Assumptions The preparation of these financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, revenue, and expenses. On an ongoing basis, management evaluates its judgments and estimates in relation to assets, liabilities, revenue, and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates under different assumptions and conditions. These estimates are reviewed periodically, an --- d adjustments are made as appropriate in the period they become known. Items for which actual results may differ materially from these estimates are described as follows: Going concern At each reporting period, management exercises judgment in assessing the Company’s ability to continue as a going concern by reviewing the Company’s performance, resources and future obligations. The conclusion that the Company will be able to continue as a going concern is subject to critical judgments of management with respect to assumptions surrounding the short- and long-term operating budgets, expected profitability, investment and financing activities and management’s strategic planning. The assumptions used in management’s going concern assessment are derived from actual operating results along with industry and market trends. Management believes there is sufficient capital to meet the Company’s business obligations for at least the next 12 months, after taking into account expected cash flows, capital commitments, future financings and the cash position at period end. Fair value of financial assets and financial liabilities Fair value of financial assets and financial liabilities on the consolidated statements of financial position that cannot be derived from active markets, are determined using a variety of techniques including the use of valuation models. The inputs to these models are derived from observable market data where possible, but where observable market data are not available, judgment is required to establish fair values. The judgments include, but are not limited to, consideration of model inputs such as volatility, estimated life and discount rates. Economic recoverability of future economic benefits of exploration and evaluation assets Management has determined that exploration and evaluation (“E&E”) assets and related costs incurred, which have been recognized on the consolidated statements of financial position, are economically recoverable. Management uses several criteria in its assessments of economic recoverability and probability of future economic benefit including geological data, scoping studies, accessible facilities, and existing and future permits. Impairment of Exploration and Evaluation Assets Management reviews the carrying values of exploration and evaluation assets whenever events or changes in circumstances indicate that their carrying values may not be recoverable. The recoverable amount of cash generating units for an exploration stage company requires various subjective assumptions. These assumptions may change significantly over time when new information becomes available and may cause original estimates to change. During the three and nine months ended November 30, 2025, $nil of impairment costs were recognized in the Company's statement of loss and comprehensive loss (three and nine months ended November 30, 2024 - $nil and $18,000, respectively). Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 9 2. Basis of Presentation (continued) (e) Material Accounting Judgments, Estimates and Assumptions (continued) Warrants, Stock Options and Restricted Share Units Management determines the costs for share-based compensation on options to purchase common shares, share purchase warrants, and restricted share units (“RSUs”) using market-based valuation techniques. The --- fair value of the market- based and performance-based share awards are determined at the date of grant using generally accepted valuation techniques. Assumptions are made and judgments are used in applying the valuation techniques. These assumptions and judgments include the expected volatility of the share price, expected forfeitures, expected dividend yield, expected term of the warrants or options, and expected risk-free interest rate. Such assumptions and judgments are inherently uncertain. Changes in these assumptions can affect the fair value estimates of share-based compensation. Income taxes Income taxes and tax exposures recognized in the financial statements reflect management’s best estimate of the outcome based on facts known at the reporting date. When the Company anticipates a future income tax payment based on its estimates, it recognizes a liability. The difference between the expected amount and the final tax outcome has an impact on current and deferred taxes when the Company becomes aware of this difference. In addition, when the Company incurs losses that cannot be associated with current or past profits, it assesses the probability of taxable profits being available in the future based on its budgeted forecasts. These forecasts are adjusted to take account of certain non-taxable income and expenses and specific rules on the use of unused credits and tax losses. When the forecasts indicate the sufficient future taxable income will be available to deduct the temporary differences, a deferred tax asset is recognized for all deductible temporary differences. Provisions The Company recognizes provisions if there is a present obligation as a result of a past event, it is probable that the Company will be required to settle the obligation, and the obligation can be reliably estimated. The amount recognized as a provision reflects management’s best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Shares issued for non-cash consideration The Company is required to recognize these transactions at fair value which requires judgment in selecting valuation techniques and other factors. 3. Summary of Material Accounting Policies The accounting policies applied by the Company in these unaudited condensed interim consolidated financial statements are the same as those disclosed in Note 3 of the Company’s audited financial statements for the year ended February 28, 2025, and for the Period from March 16, 2023 (“Date of Incorporation”) to February 29, 2024, unless otherwise noted. 4. Prepaid Expenses November 30, 2025 February 28, 2025 $ $ Prepaid insurance expense 5,147 34,338 Prepaid professional fees 20,000 - Prepaid filing fees 21,020 - Exploration advances 1,191,805 930,211 1,237,972 964,549 Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 10 5. Exploration and Evaluation Assets and Expenditures The following summarizes the movement of the Company’s E&E assets for the period ended November 30, 2025, and the year ended February 28, 2025: Wintering Lithium Property, Ontario On May 30, 2023 (the “Effective Date”), the Company entered into a purchase option agreement with Gravel Ridge Resources Ltd. (“Gravel”) and 1544230 Ontario Inc. (“1544230”) (together, the “Ve --- ndors”) to acquire a one hundred percent (100%) undivided interest in the nine (9) mining claims in Ontario. As consideration for the property, the Company is required to make cash payments of $90,000. The breakdown of payments and issuance of common shares are follows: • Pay $18,000 upon signing the agreement (paid); • Pay $18,000 on or before the first anniversary of the Effective Date; • Pay $24,000 on or before the second anniversary of the Effective Date; • Pay $30,000 on or before the third anniversary of the Effective Date; On May 29, 2024, the Company provided notice to the Vendors of its decision not to advance with the property, and as such have written off the initial cash payment capitalized to mineral property. In accordance with the purchase option agreement, the Company has no further obligation to fund or incur expenditures or any other payments or amounts and will acquire no interest in the property. Frenchvale Graphite Property, Nova Scotia On June 5, 2023, the Company entered into a purchase option agreement with MT Cameron Mineral Incorporated (“MT”) to acquire a one hundred percent (100%) interest in the mining claims in Nova Scotia (the “Frenchvale Property”). Subject to the terms and conditions set out in agreement, the MT grants to the Company the sole and exclusive right and option (the “Option”) exercisable in the manner described herein, to acquire a 100% legal and beneficial interest in and to the Frenchvale Property free and clear of all encumbrances and claims, other than the permitted encumbrances, which interest shall be deemed to vest and be fully exercised on the date upon which each of following conditions has been satisfied: • Work Program No. 1: On the date the first Work Program is approved - $150,000 (completed); • Work Program No. 2: On or before May 27, 2025, i.e. twelve (12) months after the Listing Date - $250,000; • Work Program No. 3: On or before May 27, 2026, i.e. twenty-four (24) months after the Listing Date - $1,000,000; • Work Program No. 4: On or before May 27, 2027, i.e. thirty-six (36) months after the Listing Date - $3,000,000. On June 24, 2025, the Company announced that it had terminated its option to acquire 100% of the interest in the Frenchvale Flake Graphite Property. November 30, 2025 February 28, 2025 $ $ Balance, beginning of Year 989,868 18,000 Clay Howell Project 88,000 - Charlevoix Silica Property acquisition - 727,500 St. Gabriel Property acquisition - 230,000 Legal and other costs 32,482 32,368 Impairment of mineral property - (18,000) Balance, end of Period 1,110,350 989,868 Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 11 5. Exploration and Evaluation Assets and Expenditures (continued) Charlevoix Silica Property, Quebec On April 15, 2024, the Company entered into an agreement with Charlevoix Silica Inc / Silice Charlevoix Inc (“Charlevoix Silica”). pursuant to which the Company shall acquire one hundred (100%) percent of Charlevoix Silica’s undivided legal and beneficial right, title and interest in and to mining claims in Quebec comprising the Charlevoix Silica Property. As consideration for the property, the Company is required to make cash payments and issue common shares in accordance with the following schedule: • Pay $50,000 in cash on signing of the agreement. (Paid) • Pay $100,000 in cash (the “Remaining Ca --- sh Amount”) (Paid) • Issue 750,000 common shares (Issued) The Company completed the acquisition on June 21, 2024. St. Gabriel Silica Project On January 29, 2025, the Company completed the acquisition of the Saint Gabriel Silica Project, which consists of 23 contiguous mineral claims totaling 1,312.90 ha. located in the Bas Saint-Laurent region, Quebec, from Steadright Critical Minerals Inc, in exchange for $65,000 in cash and 300,000 common shares of the Company. The Company notes that the Claims are subject to a 2% net smelter returns royalty (the “Royalty”), one-half of which may be re-purchased by payment of $1,500,000. Clay Howell Project On April 30, 2025, the Company announced that it has entered into an option agreement pursuant to which it may acquire a 100% interest in and to the Clay Howell Rare Earths project (“Clay Howell Project”), subject to a 1.5% net smelter returns royalty. Under the terms of the option agreement, the Company may acquire the Clay Howell Project by making the following cash and share payments to the vendors: • $12,000 upon signing the option agreement (the “Effective Date”) (paid) • 160,000 common shares within 7 business days of the Effective Date (issued) • $16,000 and 160,000 common shares on the 1st anniversary of the Effective Date • $24,000 on the 2nd anniversary of the Effective Date • $32,000 on the 3rd anniversary of the Effective Date Bovill Silica Project On March 7, 2025, the Company announced that its exploration partner, Rangefront Mining Services ("Rangefront"), has filed 22 mineral lode claims on the Company's behalf with the U.S. Bureau of Land Management (“BLM”) near Bovill, Idaho. The 22 lode claims have been submitted to BLM for application processing. 6. Accounts Payable and Accrued Liabilities Accounts payable of the Company are principally comprised of amounts outstanding for trade purchases incurred in the normal course of business. November 30, 2025 February 28, 2025 $ $ Accounts Payable 61,343 50,894 Accrued Liabilities 69,049 118,661 130,392 169,555 Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 12 7. Flow-Through Share Liability Flow-through share liability includes the liability portion of the flow-through shares issued at a premium to the market price in recognition of the tax benefits accruing to subscribers. The flow-through premium was calculated to be $17,647 on the November FT Private Placement (defined hereafter) completed on November 29, 2024, and will be derecognized through income as eligible expenditures are incurred. For the three and nine months ended November 30, 2025, the Company incurred eligible expenditures of $999,998, satisfying $17,647 of such premium (2024 - $nil). The flow-through premium was calculated to be $105,450 on the July FT Private Placement (defined hereafter) completed on July 7, 2025, and will be derecognized through income as eligible expenditures are incurred. For the three and nine months ended November 30, 2025, the Company incurred eligible expenditures of $1,235,600, satisfying $76,071 of such premium (2024 - $nil). 8. Share Capital (a) Authorized share capital The Company is authorized to issue an unlimited number of common shares without par value. Common shares issued and outstanding as at November 30, 2025 and February 28, 2025 are as follows: On March 7, 2025, the Company complete --- d a non-brokered private placement offering (the “March Private Placement”) of 555,555 Units of the Company ("Units") at a price of $0.54 per Unit, for aggregate gross proceeds of $300,000. Each Unit consists of one common share of the Company (“Share”) and one Share purchase warrant (“Warrant”), with each Warrant entitling the holder to purchase a Share at an exercise price of $0.65 for a period of 24 months from the date of issuance. The Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 99.28%, expected dividend yield of 0%, risk-free interest rate of 2.59%, forfeiture rate of 0% and an expected life of two years. $209,043 was allocated to the Shares and $90,957 was allocated to Warrants based on a relative fair value calculation. November 30, 2025 February 28, 2025 $ $ Balance, beginning of Year 17,647 - Liability incurred on issuance of flow-through shares 105,450 17,647 Settlement of flow-through share liability on incurred expenditur (93,718) - Balance, end of Period 29,379 17,647 Number of common shares Amount $ $ Balance, February 29, 2024 20,304,098 786,522 Shares issued on private placement financing 11,186,395 3,487,840 Flow-through premium liability - (17,647) Share issue costs (cash and broker warrants) - (221,431) Issuance of shares on Property Option 1,050,000 742,500 Issuance of shares on Warrants exercise 7,386,166 1,364,151 Issuance of shares on RSUs exercise 225,000 207,750 Balance, February 28, 2025 40,151,659 6,349,685 Shares issued on private placement financing 8,008,658 2,728,799 Flow-through premium liability - (105,450) Share issue costs (cash and broker warrants) - (186,468) Issuance of shares on Property Option 160,000 88,000 Issuance of shares on Warrants exercise 3,787,832 1,271,036 Issuance of shares on RSUs exercise 1,100,000 520,000 Issuance of shares on Option exercise 300,000 223,258 Balance, August 31, 2025 53,508,149 10,888,860 Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 13 8. Share Capital (continued) (a) Authorized share capital (continued) On May 12, 2025, the Company issued 160,000 common shares in connection with the acquisition of the Clay Howell Property (see Note 5). These common shares were valued at $88,000. On June 6, 2025, the Company completed a non-brokered private placement offering (the “LIFE Offering”) of 2,000,000 Units at a price of $0.50 per Unit, for aggregate gross proceeds of $1,000,000. Each Unit consists of one Share and one- half of one Warrant, with each Warrant entitling the holder to purchase a Share at an exercise price of $0.61 for a period of 24 months from the date of issuance. The Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 100.99%, expected dividend yield of 0%, risk-free interest rate of 2.69%, forfeiture rate of 0% and an expected life of two years. $790,634 was allocated to the Shares and $209,366 was allocated to Warrants based on a relative fair value calculation. In connection with the LIFE Offering, the Company granted underwriters 54,000 Finders’ Warrants with each Finders’ Warrant entitling the holder to purchase a Share at an exercise price of $0.61 for a period of 24 months from the date of issuance. The Warrants were valued using Black-Scholes model with the following assumptions: expected vol --- atility of 100.99%, expected dividend yield of 0%, risk-free interest rate of 2.69%, forfeiture rate of 0% and an expected life of two years. The fair value of the Finders’ Warrants was $17,392. In addition, the Company paid total issuance costs of $35,565. Issuance costs of $41,870 was allocated to the Shares and $11,087 was allocated to the Warrants based on a relative fair value calculation. On July 8, 2025, the Company completed a non-brokered private placement offering (the “July FT Private Placement”) of 2,953,103 FT Units at a price of $0.58 per FT Unit, for aggregate gross proceeds of $1,712,800. Each FT Unit consists of one FT Share and one-half of one FT Warrant, with each whole FT Warrant entitling the holder to purchase a Share at an exercise price of $0.68 for a period of 24 months from the date of issuance. The Warrants were valued using Black- Scholes model with the following assumptions: expected volatility of 102.99%, expected dividend yield of 0%, risk-free interest rate of 2.69%, forfeiture rate of 0% and an expected life of two years. $1,294,894 was allocated to the Shares, $312,456 was allocated to Warrants, and $105,450 was allocated to the Flow-Through Premium based on the residual value. In connection with the July FT Private Placement, the Company granted underwriters 177,180 Finders’ Warrants with each Finders’ Warrant entitling the holder to purchase a Share at an exercise price of $0.68 for a period of 24 months from the date of issuance. The Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 102.99%, expected dividend yield of 0%, risk-free interest rate of 2.69%, forfeiture rate of 0% and an expected life of two years. The fair value of the Finders’ Warrants was $35,185. In addition, the Company paid total issuance costs of $108,256. Issuance costs of $117,274 was allocated to the Shares and $26,167 was allocated to the Warrants based on a relative fair value calculation. On October 28, 2025, the Company completed a non-brokered private placement offering (the “October LIFE Offering”) of 2,500,000 Units at a price of $0.20 per Unit, for aggregate gross proceeds of $500,000. Each Unit consists of one Share and one Warrant, with each Warrant entitling the holder to purchase a Share at an exercise price of $0.27 for a period of 24 months from the date of issuance. The Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 103.85%, expected dividend yield of 0%, risk-free interest rate of 2.36%, forfeiture rate of 0% and an expected life of two years. $328,778 was allocated to the Shares and $171,222 was allocated to Warrants based on a relative fair value calculation. In connection with the October LIFE Offering, the Company granted underwriters 84,000 Finders’ Warrants with each Finders’ Warrant entitling the holder to purchase a Share at an exercise price of $0.27 for a period of 24 months from the date of issuance. The Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 103.85%, expected dividend yield of 0%, risk-free interest rate of 2.36%, forfeiture rate of 0% and an expected life of two years. The fair value of the Finders’ Warrants was $10,499. In addition, the Company paid total issuance costs of $31,054. Issuance costs of $27,323 was allocated to the Shares and $14,230 was allocated to the Warrants based on a relative fair value calculation. During the n --- ine months ended November 30, 2025, 3,787,832 common shares were issued on the exercise of warrants, for gross proceeds of $1,025,223. Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 14 8. Share Capital (continued) (a) Authorized share capital (continued) During the nine months ended November 30, 2025, 300,000 common shares were issued on the exercise of warrants, for gross proceeds of $132,000. During the nine months ended November 30, 2025, 1,100,000 common shares were issued on the exercise of RSUs. Share capital activity for the year ended February 28, 2025 On June 21, 2024, the Company issued 750,000 common shares in connection with the acquisition of the Charlevoix Silica Property (see Note 5). These common shares were valued at $577,500. On June 18, 2024, the Company completed a non-brokered private placement offering (the “Non-FT Private Placement”) of 3,559,000 units of the Company at a price of $0.35 per Unit, for aggregate gross proceeds of $1,245,650. Each Unit consists of one common share of the Company and one Share purchase warrant, with each Warrant entitling the holder to purchase one Share at an exercise price of $0.45 for a period of 24 months from the date of issuance. The Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 86.12%, expected dividend yield of 0%, risk-free interest rate of 3.82%, forfeiture rate of 0% and an expected life of two years. $769,364 was allocated to the Shares and $476,286 was allocated to Warrants based on a relative fair value calculation. The Company also completed a non-brokered private placement offering (the “FT Private Placement,” and together with the Non-FT Private Placement, the “Private Placement Offerings”) of 2,225,000 flow-through units of the Company (“FT Units”) at a price of $0.40 per FT Unit, for aggregate gross proceeds of $890,000. Each FT Unit consists of one Share (“FT Share”) and one (non-flow-through) Share purchase warrant (“FT Warrant”), with each FT Warrant entitling the holder to purchase a (non-flow-through) Share at an exercise price of $0.50 for a period of 24 months from the date of issuance. The FT Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 86.12%, expected dividend yield of 0%, risk-free interest rate of 3.82%, forfeiture rate of 0% and an expected life of two years. $558,851 was allocated to the FT Shares and $331,149 was allocated to FT Warrants based on a relative fair value calculation. On November 29, 2024, the Company completed a non-brokered private placement offering (the “November FT Private Placement”) of 1,176,469 FT Units at a price of $0.85 per FT Unit, for aggregate gross proceeds of $999,998. Each FT Unit consists of one FT Share and one half of one FT Warrant, with each FT Warrant entitling the holder to purchase a Share at an exercise price of $1.05 for a period of 24 months from the date of issuance. The FT Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 96.32%, expected dividend yield of 0%, risk-free interest rate of 3.02%, forfeiture rate of 0% and an expected life of two years. $820,080 was allocated to the FT Shares, $179,918 was allocated to FT Warrants, and $17,647 was allocated to flow-through share liability based on a r --- elative fair value calculation. In connection with the November FT Private Placement, the Company granted underwriters 70,588 Finders’ Warrants with each Finders’ Warrant entitling the holder to purchase a Share at an exercise price of $1.05 for a period of 24 months from the date of issuance. The Finders’ Warrants were valued at $18,001 using Black-Scholes model with the following assumptions: expected volatility of 96.32%, expected dividend yield of 0%, risk-free interest rate of 3.02%, forfeiture rate of 0% and an expected life of two years. In addition, the Company paid total issuance costs of $60,430. On December 23, 2024, the Company completed a non-brokered private placement offering (the “December FT Private Placement”) of 1,855,926 FT Units at a price of $0.54 per FT Unit, for aggregate gross proceeds of $1,002,200. Each FT Unit consists of one FT Share and one FT Warrant, with each FT Warrant entitling the holder to purchase a Share at an exercise price of $0.65 for a period of 24 months from the date of issuance. The FT Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 97.20%, expected dividend yield of 0%, risk-free interest rate of 3.03%, forfeiture rate of 0% and an expected life of two years. $670,372 was allocated to the FT Shares and $331,828 was allocated to FT Warrants based on a relative fair value calculation. In connection with the December FT Private Placement, the Company granted underwriters 111,355 Finders’ Warrants with each Finders’ Warrant entitling the holder to purchase a Share at an exercise price of $0.65 for a period of 24 months from the date of issuance. The Finders’ Warrants were valued at $31,970 using Black-Scholes model with the following assumptions: expected volatility of 97.20%, expected dividend yield of 0%, risk-free interest rate of 3.03%, forfeiture rate of 0% and an expected life of two years. In addition, the Company paid total issuance costs of $79,545. Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 15 8. Share Capital (continued) (a) Authorized share capital (continued) On January 29, 2025, the Company issued 300,000 common shares in connection with the acquisition of the St. Gabriel Silica Property (see Note 5). These common shares were valued at $165,000. On February 14, 2025, the Company completed a non-brokered private placement offering (the “First Tranche February Private Placement”) of 2,070,000 Units at a price of $0.42 per Unit, for aggregate gross proceeds of $869,400. Each unit consists of one Share and one Warrant, with each Warrant entitling the holder to purchase a Share at an exercise price of $0.53 for a period of 24 months from the date of issuance. The FT Warrants were valued using Black-Scholes model with the following assumptions: expected volatility of 97.43%, expected dividend yield of 0%, risk-free interest rate of 2.72%, forfeiture rate of 0% and an expected life of two years. $577,393 was allocated to the Shares and $292,007 was allocated to Warrants based on a relative fair value calculation. In connection with the First Tranche February Private Placement, the Company granted underwriters 64,200 Finders’ Warrants with each Finders’ Warrant entitling the holder to purchase a Share at an exercise price of $0.53 for a period of 24 months from the date of issuance --- . The Finders’ Warrants were valued at $9,138 using Black-Scholes model with the following assumptions: expected volatility of 75.76%, expected dividend yield of 0%, risk-free interest rate of 2.72%, forfeiture rate of 0% and an expected life of two years. In addition, the Company paid total issuance costs of $60,870. On February 21, 2025, the Company completed a non-brokered private placement offering (the “Second Tranche February Private Placement”) of 300,000 Units at a price of $0.42 per Unit, for aggregate gross proceeds of $126,000. Each Unit consists of one Share and one Warrant, with each Warrant entitling the holder to purchase a Share at an exercise price of $0.53 for a period of 24 months from the date of issuance. The FT Warrants were valued using Black- Scholes model with the following assumptions: expected volatility of 97.58%, expected dividend yield of 0%, risk-free interest rate of 2.72%, forfeiture rate of 0% and an expected life of two years. $84,963 was allocated to the Shares and $41,037 was allocated to Warrants based on a relative fair value calculation. During the year ended February 28, 2025, 7,386,166 common shares were issued on the exercise of warrants, for gross proceeds of $1,264,367. During the year ended February 28, 2025, 225,000 common shares were issued on the exercise of RSUs. (b) Basic and diluted loss per share Basic and diluted loss per share is calculated by dividing the net loss of $2,264,967 and $6,419,322 for the respective three and nine months ended November 30, 2025 (2024 – $2,144,139 and $3,316,670, respectively) by the weighted- average number of common shares outstanding of 51,908,698 and 47,262,205 during the period (2024 –30,851,565 and 25,719,723, respectively). For the three and nine months ended November 30, 2025, the basic and diluted loss per share was $0.04 and $0.14, respectively (2024 – basic and diluted loss of $0.07 and $0.13, respectively). (c) Reserve for Share-Based Payments The Company maintains the Option Plan whereby certain key employees, officers, directors and consultants may be granted stock options for common shares of the Company. The Option Plan provides that the aggregate number of securities reserved for issuance will be up to 10% of the number of the common shares issued and outstanding from time to time. The Option Plan is administered by the Board, which has full and final authority with respect to granting stock options thereunder. As at November 30, 2025, the Company had 3,300,814 common shares that are issuable under the Option Plan. Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 16 8. Share Capital (continued) (c) Reserve for Share-Based Payments (continued) The following summarizes the options activity for the nine months ended November 30, 2025, and the year ended February 28, 2025: Options activities for the three and nine months ended November 30, 2025 On April 1, 2024, the Company granted 250,000 options to a certain director. The options are exercisable at a price of $0.56 per common share for a period of five years. The options vest four months after the grant date. The options were valued using a Black Scholes model with the following assumptions: expected volatility of 88.68%, expected dividend yield of 0%, risk-free interest rate of 2.57% and an expected life of five years. The grant date fair v --- alue attributable to these options was $93,561. During the nine months ended November 30, 2025, 300,000 common shares were issued on the exercise of warrants, for gross proceeds of $132,000. Options activities for the year ended February 28, 2025 On August 12, 2024, the Company granted 1,500,000 options to certain directors and officers. The options are exercisable at a price of $0.92 per common share for a period of five years. The options vest quarterly in equal installments from the date of grant. The options were valued using a Black Scholes model with the following assumptions: expected volatility of 88.58%, expected dividend yield of 0%, risk-free interest rate of 2.98% and an expected life of five years. The grant date fair value attributable to these options was $968,316. On February 24, 2025, the Company granted 600,000 options to certain directors and officers. The options are exercisable at a price of $0.44 per common share for a period of five years. The options vest quarterly in equal installments from the date of grant. The options were valued using a Black Scholes model with the following assumptions: expected volatility of 86.95%, expected dividend yield of 0%, risk-free interest rate of 2.76% and an expected life of five years. The grant date fair value attributable to these options was $182,591. The following table summarizes information of stock options outstanding and exercisable as at November 30, 2025: During the three and nine months ended November 30, 2025, the Company recorded stock-based compensation of $nil and $328,689, respectively (2024 - $110,534) related to the vesting of stock options. Number of options Weighted average exercise price Number of options Weighted average exercise price # $ # $ Outstanding, beginning of year 2,100,000 0.78 - - Granted - - 1,500,000 0.92 Granted - - 600,000 0.44 Granted 250,000 0.56 - - Exercised (300,000) 0.44 Outstanding, end of period 2,050,000 0.81 2,100,000 0.78 November 30, 2025 February 28, 2025 Date of expiry Number of options outstanding Number of options exercisable Exercise price Weighted average remaining contractual life # # $ Years August 12, 2029 1,500,000 1,500,000 0.92 3.70 February 24, 2030 300,000 - 0.44 4.24 April 1, 2030 250,000 250,000 0.56 4.33 2,050,000 1,750,000 0.81 3.85 Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 17 8. Share Capital (continued) (d) Reserve for Warrants The following summarizes the warrant activity for the nine months ended November 30, 2025, and the year ended February 28, 2025: The following summarizes warrants outstanding as of November 30, 2025: (e) Reserve for Restricted Share Units On August 12, 2024, the Company granted 200,000 RSUs to a consultant of the Company, which vested on December 13, 2024. These RSUs were exercised on December 16, 2024. On September 17, 2024, the Company granted 75,000 RSUs to a consultant of the Company, which vest in equal installments every four months from the date of issuance. On January 30, 2025, 25,000 of these RSUs were exercised. On May 20, 2025, 25,000 of these RSUs were exercised. On September 22, 2025, 25,000 of these RSUs were exercised. On February 21, 2024, the Company granted 1,250,000 RSUs to officers, directors, and consultants of the Company, which vest four months after the date of issuance. On June 23, 2025, 750,000 of these R --- SUs were exercised. On July 3, 2025, 300,000 of these RSUs were exercised. During the three and nine months ended November 30, 2025, the Company recorded $1,106 and $550,692, respectively, as stock-based compensation in connection with the vesting of these RSUs (2024 - $190,919). Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price # $ # $ Outstanding, beginning of year 13,095,634 0.45 9,637,498 0.13 Granted 555,555 0.65 3,559,000 0.45 Granted 1,054,000 0.61 2,225,000 0.50 Granted 1,653,731 0.68 658,821 1.05 Granted 2,584,000 0.27 1,967,281 0.65 Granted - - 2,134,200 0.53 Granted - - 300,000 0.53 Exercised (1,983,332) 0.10 (4,066,666) 0.10 Exercised (2,000) 0.20 (2,543,500) 0.20 Exercised (302,500) 0.50 Exercised (1,497,000) 0.45 (776,000) 0.45 Exercised (3,000) 0.53 Outstanding, end of period 15,155,088 0.46 13,095,634 0.45 November 30, 2025 February 28, 2025 Date of expiry Number of warrants outstanding Exercise price Weighted average remaining contractual life # $ Years May 27, 2026 950,000 0.10 0.49 May 27, 2026 92,000 0.20 0.49 June 18, 2026 1,922,500 0.45 0.55 June 18, 2026 1,286,000 0.50 0.55 November 29, 2026 658,821 1.05 1.00 December 23, 2026 1,967,281 0.65 1.06 February 14, 2027 2,131,200 0.53 1.21 February 21, 2027 300,000 0.53 1.23 March 7, 2027 555,555 0.65 1.26 June 6, 2027 1,054,000 0.61 1.51 July 7, 2027 1,653,731 0.68 1.60 October 28, 2027 2,584,000 0.27 1.91 15,155,088 0.46 0.85 Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 18 9. Related Party Transactions In accordance with IAS 24 – Related Party Disclosures, key management personnel, including companies controlled by them, are those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly, including any directors (executive and non-executive) of the Company. The remuneration of directors and other members of key management personnel during the three and nine months ended November 30, 2025 and 2024 were as follows: During the three and nine months ended November 30, 2025, the Company incurred consulting fees of $24,000 and $72,000, respectively, with a company owned by the CEO and director of the Company (2024 - $24,000 and $56,000, respectively). As at November 30, 2025, $10,306 is included in accounts payable and accrued liabilities related to these consulting fees (February 28, 2025 - $9,756). The amount outstanding is unsecured, non-interest bearing and due on demand. During the three and nine months ended November 30, 2025, the Company incurred consulting fees of $7,500 and $32,500, respectively, with a company owned by the CFO of the Company (2024 - $nil). As at November 30, 2025, $3,647 is included in accounts payable and accrued liabilities related to these consulting fees (February 28, 2025 - $nil). The amount outstanding is unsecured, non-interest bearing and due on demand. During the three and nine months ended November 30, 2025, the Company incurred consulting fees of $nil, respectively, with a company owned by the former CEO and director of the Company (2024 - of $nil and $66,000, respectively). During the three and nine months ended November 30, 2025, the Company incurred salaries and wages expenses of $nil to the former CFO of the Company (2024 - $nil and $9,000, respectivel --- y). During the three and nine months ended November 30, 2025, the Company incurred consulting and director fees of $27,000 and $33,000 with companies owned by directors of the Company (2024 - $12,000 and $26,300, respectively) Stock-based compensation During the three and nine months ended November 30, 2025, the Company recorded stock-based compensation of $nil and $406,323 (2024 – $480,677 and $591,211, respectively). 10. Capital Management The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern and to maintain optimal returns to shareholders and benefits for its stakeholders. Although the Company has been successful in obtaining financing through the sale of equity securities, there can be no assurance that the Company will be able to obtain adequate financing in the future, or that the terms of such financings will be favourable. The Company’s share capital is not subject to any external restriction and the Company did not change its approach to capital management during the period. 11. Risk Management The Company is exposed to various risks as it relates to financial instruments. Management, in conjunction with the Board, mitigates these risks by assessing, monitoring and approving the Company’s risk management process. There have not been any changes in the nature of these risks or the process of managing these risks from the previous reporting periods. Credit risk Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash. Cash is held at reputable Canadian chartered banks and in trust with the Company’s legal counsel, which is closely monitored by management. Management believes that the credit risk concentration with respect to cash is minimal. Three-Months ended November 30, 2025 Three-Months ended November 30, 2024 Nine-Months ended November 30, 2025 Nine-Months ended November 30, 2024 $ $ $ $ Management salaries and consulting fees 58,500 36,000 137,500 157,300 Stock-based compensation - 480,677 406,323 591,211 58,500 516,677 543,823 748,511 Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 19 11. Risk Management (continued) Liquidity risk Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its financial obligations as they come due. The Company’s liquidity and operating results may be adversely affected if the Company’s access to the capital market is hindered, whether as a result of a downturn in stock market conditions generally or related to matters specific to the Company. The Company generates cash flow primarily from its financing activities. The Company endeavors to have sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot be reasonably predicted. As at November 30, 2025, the Company had a cash balance of $981,636 (February 28, 2025 – $2,420,653) to settle current liabilities of $130,392 (February 28, 2025 – $169,555), and had the following contractual undiscounted obligations: Carrying amount Year 1 Year 2 to 3 Year 4 to 5 $ $ $ $ Accounts payable and accrued liabilities 130,392 130,392 - - The Company’s approach to managing liquidity risk --- is to ensure that it will have sufficient liquidity to meet its liabilities as they come due. The Company has undertaken several proposed restructuring initiatives and other corporate measures to rationalize its capital and debt structure to better position the Company for future opportunities and meet its obligations as they come due. Until these initiatives and efforts are finalized, there is no assurance that one or any of these initiatives will be successful. Management believes there is sufficient capital to meet short-term business obligations, after taking into account cash flow requirements from operations and the Company’s cash position as at November 30, 2025. Flow-through obligations Pursuant to the terms of flow-through share agreements, the Company is also in the process of complying with its flow- through obligations to subscribers with respect to the Income Tax Act (Canada) requirements for flow-through shares. As of November 30, 2025, the Company had spent a total of $3,526,478 on eligible expenditures towards its flow- through obligations, with a remaining balance of $601,320 to be spent by December 31, 2025, and an additional $477,200 to be spent by December 31, 2026. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As at November 30, 2025, the Company had no financial instruments which are interest- bearing, and had no hedging agreements in place with respect to floating interest rates. Management believes that the interest rate risk concentration with respect to financial instruments is minimal. Fair value Fair value estimates of financial instruments are made at a specific point in time based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. As at November 30, 2025, the Company’s financial instruments consisted of cash, and accounts payable and accrued liabilities. The fair value of cash and accounts payables and accrued liabilities are approximately equal to their carrying value due to their short-term nature. Argyle Resources Corp. Notes to the Unaudited Condensed Interim Consolidated Financial Statements For the Three Months and Nine Months Ended November 30, 2025 and 2024 (Expressed in Canadian Dollars) 20 11. Risk Management (continued) The Company classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and • Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs). As at November 30, 2025, the Company did not have any financial instruments which were carried at fair value (February 28, 2025 – $nil). 12. Contingencies and Commitments The Company’s E&E activities are subject to various laws and regulations governing the protection of the environment. These laws and regulatio --- ns are continually changing and generally becoming more restrictive. As at November 30, 2025, the Company believes its operations are materially in compliance with all applicable laws and regulations. The Company expects to make future expenditures to comply with such laws and regulations. 13. Subsequent events On December 30, 2025, the Company completed a non-brokered private placement offering (the “December FT Private Placement”) of 2,000,000 FT Units at a price of $0.15 per FT Unit, for aggregate gross proceeds of $300,000. Each FT Unit consists of one FT Share and one-half of one FT Warrant, with each whole FT Warrant entitling the holder to purchase a Share at an exercise price of $0.20 for a period of 24 months from the date of issuance. In connection with the December FT Private Placement, the Company granted underwriters 120,000 Finders’ Warrants with each Finders’ Warrant entitling the holder to purchase a Share at an exercise price of $0.20 for a period of 24 months from the date of issuance. In addition, the Company paid total issuance costs of $18,000.