SEDAR Interim Financial Statements

Westshore Terminals Investment Corporation First Quarter Report For the three months ended March 31, 2026 1 Westshore Terminals Investment Corporation (the “Corporation”) was incorporated under the Business Corporations Act (British Columbia) on September 28, 2010 and is domiciled in Canada. The registered and head office of the Corporation is located at Suite 1800, 1067 West Cordova Street, Vancouver, British Columbia V6C 1C7. The Corporation owns all of the limited partnership units of Westshore Terminals Limited Partnership (“Westshore”), a limited partnership established under the laws of British Columbia. The Corporation derives its cash inflows from its investment in Westshore by way of distributions on Westshore’s limited partnership units. Westshore operates a coal storage and unloading/loading terminal at Roberts Bank, British Columbia (the “Terminal”). Westshore’s operating revenues are derived from rates charged for loading coal onto seagoing vessels. Westshore is currently undertaking significant infrastructure additions to the Terminal to allow it to handle potash for BHP Canada Inc., a subsidiary of BHP Group Limited (“BHP”). Westshore’s results are affected by various factors, including the volume of coal shipped by each customer, and their contracted rate per tonne, as well as Westshore’s operating costs and capital expenditures. Caution Concerning Forward-Looking Statements This MD&A contains certain forward-looking statements, which reflect the current expectations of the Corporation and Westshore with respect to future events and performance. Forward-looking statements are based on information available at the time they are made, assumptions by management, and management’s good faith belief with respect to future events. They speak only as of the date of this MD&A, and are subject to inherent risks and uncertainties, including those risk factors outlined in the Annual Information Form of the Corporation filed on http://www.sedarplus.ca, that could cause actual performance or results to differ materially from those reflected in the forward-looking statements, historical results or current expectations. Forward-looking information included in this document includes: statements regarding Westshore’s future revenues and the impacts thereon, including anticipated throughout volumes and loading rates, distribution of throughput by customer, the US/CDN dollar exchange rate, anticipated rail performance, and the impact of construction activity at Westshore; statements regarding Westshore’s potash project, including the timing of payment and amount of Westshore’s capital contribution to the project, Westshore’s ability to fund and the sources of funding for Westshore’s capital contribution to the project, the project schedule and expected completion date, and timing of meaningful revenue from handling potash; statements regarding the fraudulent payments made by Westshore, including the timing of receiving funds subject to the default judgement, amount of insurance proceeds and net financial impact; Westshore continuing to meet annual operating and capital requirements and payment of the dividend and managing variations in working capital without any need for financing except for material capital improvements; the absence of liquidity concerns with respect to the ongoing operations of Westshore; funding requirements of post- retirement benefit obligations; and assumptions in connection with critical accounting estimates. Forwar --- d-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at which, such performance or results will be achieved. There is significant risk that estimates, predictions, forecasts, conclusions and projections will not prove to be accurate, that assumptions may not be correct and that actual results may differ materially from such estimates, predictions, forecasts, conclusions or projections. Readers of this MD&A should not place undue reliance on forward-looking statements as a number of risk factors could cause actual results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Specific risk factors include, among others: Westshore’s dependence on coal shipments, which are in turn affected by global demand and competition in the supply of seaborne coal, the ability of customers to maintain or increase sales or deliver coal to the Terminal and fluctuations in exchange rates; fluctuations in inflation rates; Westshore’s ability to renegotiate key customer contracts in the future on favourable terms or at all; global changes in climate change initiatives and environmental regulations and policies; and risks related to the construction and operation of the potash project, including cost overruns and delays. See risk factors outlined in the Annual Information Form referred to above. Westshore Terminals Investment Corporation Management’s Discussion & Analysis of Financial Condition and Results of Operations 2 Management’s Discussion & Analysis of Financial Condition and Results of Operations The unaudited financial results along with management’s discussion and analysis contained in this report should be read in conjunction with the Corporation’s unaudited condensed consolidated financial statements for the three-month period ended March 31, 2026, and annual audited consolidated financial statements and management’s discussion and analysis included in the Corporation’s Annual Report for the year ended December 31, 2025. The date of this management’s discussion and analysis and results of operations is May 1, 2026. As of May 1, 2026, the Corporation has 61,769,766 (December 31, 2025 – 61,769,766) issued and outstanding shares. The Corporation did not renew its normal course issuer bid (“NCIB”) when it expired on April 14, 2026. No Common shares have been purchased under the NCIB during 2025 or 2026 prior to its expiry. The following table sets out selected consolidated financial information of the Corporation for the three months ended March 31, 2026. (In thousands of Canadian dollars except per share amounts and where noted) Three Months Ended March 31, 2026 March 31, 2025 $ $ Tonnage (000 tonnes) 6,639 5,902 Revenue 91,852 82,808 Profit before income tax 26,482 15,732 Profit for the period 19,319 11,470 Profit for the period per share(1) 0.31 0.19 Dividends declared 23,164 23,164 Dividends declared per share 0.375 0.375 (1) Weighted average shares outstanding for the three-month period ended March 31, 2026 was 61,769,766 (March 31, 2025 – 61,769,766). The following tables set out selected consolidated financial information for the Corporation on a quarterly basis for the last eight quarters. (In thousands of Canadian dollars except per share amounts and where noted) Three Months Ended Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 $ $ --- $ $ Tonnage (000 tonnes) 6,639 5,111 5,623 6,925 Revenue 91,852 69,149 75,747 95,300 Profit before income tax 26,482 55,377 18,042 35,172 Profit for the period 19,319 40,407 13,158 25,663 Profit for the period per share 0.31 0.65 0.21 0.42 Dividends declared 23,164 23,164 23,164 23,163 Dividends declared per share 0.375 0.375 0.375 0.375 Westshore Terminals Investment Corporation Management’s Discussion & Analysis of Financial Condition and Results of Operations 3 (In thousands of Canadian dollars except per share amounts and where noted) Three Months Ended Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 $ $ $ $ Tonnage (000 tonnes) 5,902 6,279 7,179 7,291 Revenue 82,808 110,853 103,496 105,622 Profit before income tax 15,732 43,003 46,624 47,431 Profit for the period 11,470 31,375 34,021 34,611 Profit for the period per share 0.19 0.51 0.55 0.56 Dividends declared 23,164 23,164 23,164 23,188 Dividends declared per share 0.375 0.375 0.375 0.375 Shares repurchased (000 shares) - - 66 679 Cost of shares repurchased - - 1,540 16,116 Westshore Terminals Investment Corporation Management’s Discussion & Analysis of Financial Condition and Results of Operations 4 Results of Operations (In thousands of Canadian dollars) Three Months Ended March 31, 2026 March 31, 2025 $ $ Revenue: Coal loading 86,560 78,785 Other 5,292 4,023 91,852 82,808 Expenses: Operating 54,500 58,817 Administrative 4,516 4,095 59,016 62,912 Other: Foreign exchange gain (loss) 296 507 Gain on disposal of property, plant and equipment - 8 Insurance Proceeds 1,394 - Miscellaneous Expense (2,638) - Net finance costs (5,406) (4,679) Profit before income tax 26,482 15,732 Income tax expense 7,163 4,262 Profit for the period 19,319 11,470 Other comprehensive income (loss), net of income tax 6,710 (5,864) Total comprehensive income for the period 26,029 5,606 Tonnage shipped for Q1 2026 was 6.6 million tonnes compared to 5.9 million tonnes for the same period in 2025. Of the tonnes shipped in Q1 2026, 75% was thermal coal and 25% was metallurgical coal, compared to 58% and 42% respectively for the same period in the prior year. Volumes were up 12.5% for the quarter (year over year) primarily due to significantly milder weather resulting in better rail performance. Coal loading revenue, consistent with higher tonnage shipped, increased by 9.9% to $86.6 million for Q1 2026 compared to $78.8 million for the same period in 2025. The average loading rate in Q1 2026 was $13.04 per tonne compared to $13.35 per tonne through the same period in 2025. The decrease in the loading rate was primarily driven by a weaker US/CDN dollar exchange rate and a lower loading rate for one of our larger customers. Other revenue for Q1 2026 was $5.3 million compared to $4.0 million for Q1 2025. The amounts for both periods primarily consisted of wharfage fees and revenue relating to train and vessel operations. Operating and administrative expenses decreased by 6.2% to $59.0 million for Q1 2026 compared to $62.9 million for the same period in 2025, reflecting our focus on cost management and the reduced fees payable to Westar Management Ltd. (“Westar”) under the Administration Agreement (defined below), which replaced the prior management agreement between Westar and Westshore and the prior administration agreement between Westar and the Corporation. Foreign exchange gain of $0.3 million in Q1 of 2026 decreased from a gain of $0.5 million in the same period of 2025. Q1 2026 included $nil unrealized ga --- ins on the mark to market of foreign exchange hedging contracts, compared to a $0.7 million unrealized gain in Q1 2025. Westshore Terminals Investment Corporation Management’s Discussion & Analysis of Financial Condition and Results of Operations 5 During the first quarter of 2026, Westshore had a miscellaneous expense of $2.6 million compared to $nil in Q1 2025. In the first quarter of 2026, Westshore was the victim of a cyber related scheme in which a fraudulent actor impersonated one of Westshore’s contractors by email for the purpose of diverting funds that Westshore intended to pay to its contractor. Westshore has made a claim under its insurance policy and is actively pursuing various legal avenues to recoup its funds, including obtaining a default judgment against the fraudulent actor and its sole director. The miscellaneous expense in Q1 2026 reflects the amount paid by Westshore to the fraudulent actor that Westshore has not secured recovery of through its ongoing legal proceedings. Westshore expects to receive the funds subject to the default judgment in the second quarter of 2026. Including the expected insurance proceeds (see below) the net impact of the fraud to Westshore is expected to be approximately $1.2 million. Westshore is continuing to pursue legal action to preserve and recover additional funds. Insurance proceeds were $1.4 million in Q1 2026 compared to $nil in Q1 2025. The Q1 2026 amount reflects the total insurance proceeds Westshore expects to receive from its insurance claim relating to the fraudulent payments discussed above. Net finance costs increased to $5.4 million in Q1 2026 from $4.7 million during the same period of 2025, primarily due to less interest income earned in the first quarter of 2026 compared to the first quarter of 2025 because of lower interest rates and fees paid in connection with establishing the Credit Facility (defined below). Income tax expense increased to $7.2 million in Q1 2026 from $4.3 million in Q1 2025 due to higher profits before taxes. Profit in the quarter increased to $19.3 million in Q1 2026 from $11.5 million during the same period of 2025, primarily as a result of higher revenues and lower operating costs. Other comprehensive income or loss includes actuarial gains and losses on the defined benefit post-retirement obligations which are primarily impacted by the discount rate used, membership assumptions and the plan asset performance (relative to actuarial expectations). After-tax other comprehensive income (loss) for the first quarter of 2026 increased to income of $6.7 million from a loss of $5.9 million in Q1 2025. The change in the first quarter of 2026 was primarily caused by a 0.25% increase in the discount rate which decreased the post-retirement benefit obligations and plan assets performing better than actuarial expectations. The change in the first quarter of 2025 was primarily caused by a 0.25% decrease in the discount rate which increased the post-retirement obligations and plan assets performing worse than actuarial expectations. Westshore Terminals Investment Corporation Management’s Discussion & Analysis of Financial Condition and Results of Operations 6 Cash Flows Cash flows from operations are available to the Corporation to fund capital and other expenditures, establish reserves, pay dividends to shareholders and to service or repay debt obligations. (In thousands of Canadian dollars) Three Months Ended March 31, 2026 March 31, 2025 $ $ Operating cash --- flows before the below noted items 41,749 29,188 Working capital changes (14,009) (8,689) Long term receivable (4,238) (4,383) Lease obligation interest paid (5,010) (5,017) Long term deferred revenue 84,753 87,665 Income tax paid (9,094) (11,597) Cash flow provided by operations 94,151 87,167 Cash flows used in financing activities (23,603) (22,580) Cash flows used in investing activities (94,896) (60,273) Increase (decrease) in cash and cash equivalents (24,348) 4,314 Operating cash flows before changes in working capital, long term receivable, lease obligation interest payments, long term deferred revenue and income tax payments increased by 43.0% to $41.7 million in the first quarter of 2026 from $29.2 million for the same period in 2025. Working capital changes resulted in a $14.0 million outflow in the first quarter of 2026 compared to a $8.7 million outflow in the first quarter of 2025, primarily due to changes in deferred revenue and significant fluctuations in accounts payable and accounts receivable due to the timing of receipts and payments for the potash project and outstanding insurance proceeds. $84.8 million was invoiced to BHP in the period for the potash project (Q1 2025 - $87.7 million), of which $4.2 million will be retained by BHP pursuant to a 5% holdback (Q1 2025 - $4.4 million). Income tax payments decreased to $9.1 million in the first quarter of 2026 from $11.6 million for the same period in 2025. As a result of these changes, cash flow from operations increased to $94.2 million in the first quarter of 2026 from $87.2 million in the first quarter of 2025. Long term deferred revenue of $84.8 million in the first quarter of 2026 decreased from $87.7 million for the same period in 2025 as a result of the decreased amounts invoiced to BHP in connection with the potash project. Westshore’s total long term deferred revenue as at March 31, 2026 was $769.6 million. Cash flows used in financing activities increased to $23.6 million in the first quarter of 2026 from $22.6 million for the same period in 2025 due to less interest income earned because of lower interest rates and fees paid in connection with establishing the Credit Facility (defined below). Cash flows used in investing activities increased to $94.9 million in in first quarter of 2026 from $60.3 million in the first quarter of 2025 primarily driven from an increase in capital expenditures. Of that $94.9 million, $87.8 million was related to the potash project. At the end of the quarter, $86.8 million had been incurred in capital expenditures but was not yet paid for. Westshore Terminals Investment Corporation Management’s Discussion & Analysis of Financial Condition and Results of Operations 7 Liquidity and Capital Resources Meeting annual operating and capital requirements and payment of the dividend, along with managing variations in working capital, are well within Westshore’s financial capacity based solely on revenues less expenses, without any need for financing except for material capital improvements. As a result, the Corporation does not anticipate any liquidity concerns with the ongoing operations of Westshore. Pursuant to the BHP Agreement, BHP is required to reimburse Westshore for construction costs relating to the potash infrastructure additions up to the agreed budget of approximately $1 billion and subject to a 5% holdback on each periodic payment, which is reflected in the balance sheet as a “long term receivable” ($38.5 million as at March 3 --- 1, 2026), after which costs incurred by Westshore to complete the project will not be reimbursed. Based on the information currently available, Westshore expects to contribute approximately $225 million for such expenditures and that they will be incurred starting in the fourth quarter of 2026, continuing until final payments to suppliers expected in mid 2027. The Corporation does not anticipate any liquidity concerns resulting from Westshore’s obligation to fund the potash project cost overruns and expects to fund much of this amount through its cash reserve, cash flows from operations and funds released under the 5% holdback, with any further requirements being funded by borrowing under our Credit Facility (defined below). As at March 31, 2026, Westshore has commitments related to the potash project of $109.9 million that have not yet been accrued. On February 20, 2026, Westshore, as borrower, the Corporation, as obligor, and Westshore Terminals Ltd., the general partner of Westshore, (the “General Partner”) entered into a credit agreement for a $165 million revolving credit facility (the “Credit Facility”) with Royal Bank of Canada and The Bank of Nova Scotia as lenders. The Credit Facility constitutes an increase to Westshore's previous $40 million operating facility. The Credit Facility is available for general corporate purposes, including Westshore’s commitments relating to the potash project. The $165 million borrowing limit under the Credit Facility reduces to $100 million on December 31, 2028 and further reduces to $50 million on December 31, 2029. The Credit Facility matures on February 20, 2030. The Credit Facility is available by way of (a) for Canadian dollar borrowings, term loans with interest accruing at Term Canadian Overnight Repo Rate Average (“CORRA”) or Daily Compounded CORRA, in each case plus the applicable CORRA Adjustment (0.29547% for one- month terms and 0.32138% for three-month terms) plus 1.25%, or prime loans, with interest accruing at the prime rate plus 0.25%, and (b) for US dollar borrowings, term loans with interest accruing at Term Secured Overnight Financing Rate (“SOFR”) plus the Term SOFR Adjustment (0.10% per annum) plus 1.25%, or base rate loans, with interest accruing at a base rate plus 0.25%. Repayment under the Credit Facility is on an interest-only basis until maturity, with mandatory repayments in line with the limit step-downs at the end of 2028 and 2029. The Credit Facility is secured by a pledge of all the assets of Westshore and is guaranteed by the Corporation and the General Partner. As at March 31, 2026, no amount was drawn on the Credit Facility. Westshore has post-retirement benefit obligations under its defined benefit pension plan and other post-retirement benefit plans which it is required to fund each year. Westshore’s cash funding requirements are estimated to be $2.5 million in 2026 (2025 - $2.7 million), which is comprised of nil contributions (2025 - $nil) to the defined benefit pension plan as this plan is currently in a surplus position and $2.5 million (2025 - $2.7 million) for payments for other post- retirement benefits. To date, Westshore has contributed nil (2025 - $nil) and $0.8 million (2025 - $1.1 million) to the defined benefit pension plan and other post-retirement benefit plans respectively. Westshore does not anticipate any issues satisfying its 2026 funding obligations out of current cash flows. Westshore Terminals Investment Corporation Management’s Discussi --- on & Analysis of Financial Condition and Results of Operations 8 The statement of financial position as of March 31, 2026 reflects a net defined benefit pension asset of $58.4 million (December 31, 2025 - $52.8 million) and $64.8 million (December 31, 2025 - $67.0 million) of other post-retirement benefit obligations. The change in 2026 was primarily caused by a 0.25% increase in the discount rate since December 31, 2025, and stronger plan asset performance. This net obligation amount will decline in the future if long term interest rates increase and will increase if such rates fall. Future undiscounted minimum payments under Westshore’s material lease obligations are as follows: (In thousands of Canadian dollars) March 31, 2026 Less than 1 year $ 21,604 Between 1 and 5 years 92,508 More than 5 years 917,941 $ 1,032,053 Under our lease with Vancouver Fraser Port Authority (“VFPA”), annual rent is comprised of two fixed amounts, basic and ancillary rent. The basic rent is fixed until December 31, 2026, and may be revised by VFPA at that time and every three years thereafter. If VFPA increases the basic rent at any such time, Westshore has the right to seek a review of the revised amount. The ancillary rent will escalate annually. Westshore does not have any other material long-term contractual obligations. Outlook The operating cash inflows of the Corporation are entirely dependent on Westshore’s operating results. They are affected by the volume and mix of coal shipped through the Terminal, the rates charged to customers for the handling of that coal, and Westshore’s operating, administrative and finance costs. The variance in revenues from 2025 will ultimately be impacted by numerous factors, including total volumes shipped through the Terminal, the distribution of throughput by customer and the US/CDN dollar exchange rate. Based on the most recent information provided by Westshore’s customers, performance year to date, anticipated rail performance, and construction activity on site, 2026 throughput volumes are anticipated to be approximately 25.5 million tonnes at an average loading charge of approximately $13.00 per tonne, for the full year. The average loading rate for a period reflects the customer mix, US/CDN exchange rate and thermal coal sale prices achieved by our customers. Westshore’s potash project is on schedule to complete in the second quarter of 2027 and we anticipate meaningful revenue for potash handling to commence approximately six months after we start receiving potash. BHP anticipates Jansen Stage 1 first production will begin mid-2027. Westshore expects the total cost of the potash project to be approximately $225 million above the original budget, which Westshore will be responsible for funding. Quarterly Distributions On April 15, 2026, shareholders on record as of March 31, 2026 received $0.375 per share representing an aggregate amount of $23.2 million (March 31, 2025 - $0.375 per share for an aggregate of $23.2 million). The dividend is subject to periodic review based on factors including operating performance, current and anticipated market conditions, funds applied to service or repay debt obligations, other opportunities that may come before Westshore, and funding of capital upgrade projects. Westshore Terminals Investment Corporation Management’s Discussion & Analysis of Financial Condition and Results of Operations 9 Related Party Transactions Westar, a wholly owned subsidiary of Jim Pattison Ltd., pro --- vides administrative services to the Corporation and Westshore pursuant to an administration agreement dated September 1, 2025 (the “Administration Agreement”). Under the Administration Agreement, the Corporation and Westshore pay, in aggregate, an annual administration fee of $2,500,000 and commencing January 1, 2027 this fee will escalate annually at a rate of 2.5%. In the first quarter of 2026 the Corporation and Westshore paid Westar, in aggregate, $0.6 million under the Administration Agreement. Westar appoints three of the eight directors of the General Partner pursuant to a governance agreement. In the first quarter of 2026, Westshore paid affiliates of Westar $0.6 million (Q1 2025 – $0.5 million) for insurance and vehicle leasing services. Changes in Accounting Policies The Corporation’s financial statements have been prepared using the material accounting policies and methods of computation consistent with those applied in the Corporation’s Annual Report for the year ended December 31, 2025. There were no new standards effective January 1, 2026 that impacted these unaudited condensed consolidated interim financial statements. Critical Accounting Estimates The preparation of financial statements and related disclosures in accordance with IFRS Accounting Standards requires the Corporation to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and contingencies. These estimates are based on historical experience and on assumptions that are considered at the time to be reasonable under the circumstances. Under different assumptions or conditions, the actual results may differ, potentially materially, from those previously estimated. The following is a discussion of the accounting estimates that are significant in determining the Corporation’s financial results. Property, plant and equipment: Depreciation Property, plant and equipment are stated at cost less accumulated depreciation. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. Depreciation is calculated using the straight line method over the estimated useful production life of the assets. The estimated useful lives of property, plant and equipment range from 3 to 35 years and are reviewed annually. A change in the estimated useful lives of property, plant and equipment could result in either a higher or lower depreciation charge to profit for the period. Asset Retirement Obligations Westshore is required to recognize the fair value of an estimated asset retirement obligation when a legal or constructive obligation is present, a reliable estimate of the obligation can be made, and it is probable that Westshore will be required to settle the obligation. At the expiry of the Terminal’s lease, the VFPA has the option to acquire the assets of the Terminal at fair value or require Westshore to return the site to its original condition. Westshore believes that the probability that the VFPA will elect to enforce site restoration is remote. Any change in the estimate of the probability of incurring such costs could have a material impact on the asset retirement obligation. Westshore Ter --- minals Investment Corporation Management’s Discussion & Analysis of Financial Condition and Results of Operations 10 Lease Obligation The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using Westshore’s incremental borrowing rate. The lease liability is subsequently measured at amortized cost using the effective interest rate method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in Westshore’s estimate of the amount expected to be payable under a residual value guarantee or if Westshore changes its assessment of whether it will exercise a purchase, extension or termination option. Any change in the incremental borrowing rate of Westshore could have a material impact on future lease obligations. Goodwill Goodwill is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired, by comparing the fair value of Westshore to its carrying value, including goodwill. If the fair value of Westshore is less than its carrying value, a goodwill impairment loss is recognized as the excess of the carrying value of the goodwill over the fair value of the goodwill. The determination of fair value requires management to make assumptions and estimates about future coal loading rates, customer shipments, operating costs, foreign exchange rates and discount rates. Changes in any of these assumptions, such as lower coal loading rates, a decline in customer shipments, an increase in operating costs or an increase in discount rates could result in an impairment of all or a portion of the goodwill carrying value in future periods. Employee Future Benefits Westshore has post-retirement benefit obligations under its pension plans and other post-retirement benefit plans, the costs of which are based on estimates. Actuarial calculations of benefit costs and obligations depend on Westshore’s assumptions about future events. The most significant assumption is the discount rate used in the actuarial determinations. Other assumptions relate to expected plan investment performance, salary escalation, retirement ages of employees and expected health care costs, withdrawal rates and mortality rates. Disclosure Controls and Procedures and Internal Control over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting and disclosure controls and procedures. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. There have been no changes in Westshore’s internal control over financial reporting or disclosure controls and procedures during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to affect, the Corporation’s financial and other reporting. In response to the fraudulent payments made by Westshore in the first quarter of 2026, the Corporation completed an investigation and found that the Corporation’s internal procedure for verifying vendor payment instructions was not followed in this particular instance. However, the Corporation determined that this was an isolated incident of such procedure not b --- eing followed, and concluded that it did not amount to a material weakness in the Corporation’s internal controls over financial reporting. In light of the incident, the Corporation has enhanced its internal procedures for verifying vendor payment instructions. Westshore Terminals Investment Corporation Management’s Discussion & Analysis of Financial Condition and Results of Operations 11 Additional Information Additional information relating to the Corporation, including the Corporation’s latest Annual Report and Annual Information Form, are available on SEDAR+ at http://www.sedarplus.ca and on Westshore’s website at www.westshore.com. 12 WESTSHORE TERMINALS INVESTMENT CORPORATION Unaudited Condensed Consolidated Statements of Financial Position (Expressed in thousands of Canadian dollars) March 31, December 31, Note 2026 2025 Assets Current assets: Cash and cash equivalents $ 101,535 $ 125,883 Accounts receivable 56,840 71,063 Inventories 23,241 23,096 Prepaid expenses 1,468 3,414 Other assets 13 5 - 183,089 223,456 Property, plant and equipment: 6 At cost 1,587,138 1,533,153 Accumulated depreciation (395,027) (389,046) 1,192,111 1,144,107 Long term receivable 14 38,479 34,241 Right-of-use assets 15 399,943 402,177 Goodwill 365,541 365,541 Other intangible assets 12,284 11,938 Employee future benefits 11 58,374 52,834 $ 2,249,821 $ 2,234,294 Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 153,093 $ 203,933 Income tax payable 4,995 5,301 Deferred revenue 3,504 22,956 Other liabilities 13 - 5 Lease obligation current portion 15 1,493 944 Dividends payable to shareholders 23,164 23,164 186,249 256,303 Long term deferred revenue 14 769,570 684,817 Deferred income taxes 9 48,071 47,214 Employee future benefits 11 64,842 66,955 Lease obligation 15 439,139 439,920 1,507,871 1,495,209 Shareholders' equity: Share capital 1,419,472 1,419,472 Deficit (677,522) (680,387) 741,950 739,085 $ 2,249,821 $ 2,234,294 Commitments and contingencies (note 15) See accompanying notes to unaudited condensed consolidated financial statements. Approved on behalf of the Board: (Signed) "M. Dallas H. Ross" (Signed) "Glenn D. Dudar" M. Dallas H. Ross Glenn D. Dudar Director Director 13 WESTSHORE TERMINALS INVESTMENT CORPORATION Unaudited Condensed Consolidated Statements of Comprehensive Income (Expressed in thousands of Canadian dollars) Three months ended March 31, 2026 and 2025 Note 2026 2025 Revenue: Coal loading $ 86,560 $ 78,785 Other 5,292 4,023 91,852 82,808 Expenses: 4 Operating 54,500 58,817 Administrative 4,516 4,095 59,016 62,912 Other: Foreign exchange gain 296 507 Insurance proceeds 5 1,394 - Miscellaneous expense 5 (2,638) - Gain on disposal of property, plant and equipment equipment - 8 Net finance costs 7 (5,406) (4,679) Profit before income tax 26,482 15,732 Income tax expense 8 7,163 4,262 Profit for the period 19,319 11,470 Other comprehensive income (loss): Items that will not be recycled to net income: Defined benefit plan actuarial gains (losses) 9,192 (8,033) Income tax recovery (expense) on other comprehensive income (loss) (2,482) 2,169 Other comprehensive income (loss) for the period, net of income tax 6,710 (5,864) Total comprehensive income for the period $ 26,029 $ 5,606 Profit per share: Basic and diluted earnings per share 10 $ 0.31 $ 0.19 Weighted average number of shares outstanding 61,769,766 61,769,766 See accompanying notes to the unaudited condensed consolidated financial st --- atements. 14 WESTSHORE TERMINALS INVESTMENT CORPORATION Unaudited Condensed Consolidated Statements of Changes in Equity (Expressed in thousands of Canadian dollars) Three months ended March 31, 2026 and 2025 Share capital Deficit Total Balance at January 1, 2025 $ 1,419,472 $ (693,573) $ 725,899 Profit for the period - 11,470 11,470 Other comprehensive loss: Defined benefit plan actuarial losses, net of tax - (5,864) (5,864) Total comprehensive income for the period - 5,606 5,606 Distributions to shareholders of the Corporation: Dividends declared to shareholders - (23,164) (23,164) Balance at March 31, 2025 $ 1,419,472 $ (711,131) $ 708,341 Share capital Deficit Total Balance as at January 1, 2026 $ 1,419,472 $ (680,387) $ 739,085 Profit for the period - 19,319 19,319 Other comprehensive income: Defined benefit plan actuarial gains, net of tax - 6,710 6,710 Total comprehensive income for the period - 26,029 26,029 Distributions to shareholders of the Corporation: Dividends declared to shareholders - (23,164) (23,164) Balance at March 31, 2026 $ 1,419,472 $ (677,522) $ 741,950 See accompanying notes to the unaudited condensed consolidated financial statements. 15 WESTSHORE TERMINALS INVESTMENT CORPORATION Unaudited Condensed Consolidated Statements of Cash Flows (Expressed in thousands of Canadian dollars) Three months ended March 31, 2026 and 2025 2026 2025 Cash provided by (used in): Operations: Profit for the period $ 19,319 $ 11,470 Adjustments for: Foreign exchange contracts (10) (741) Depreciation and amortization 8,521 8,279 Employee future benefits 1,350 1,247 Net finance costs 5,406 4,679 Income tax expense 7,163 4,262 Gain on disposal of property, plant and equipment - (8) 41,749 29,188 Changes in non-cash operating working capital and other: Accounts receivable 14,223 3,525 Inventories (145) 461 Prepaid expenses 1,946 1,717 Accounts payable and accrued liabilities (10,581) 844 Deferred revenue (19,452) (15,236) (14,009) (8,689) Long term receivable (4,238) (4,383) Lease obligation interest paid (5,010) (5,017) Long term deferred revenue 84,753 87,665 Income taxes paid (9,094) (11,597) 94,151 87,167 Financing: Interest received (paid) (207) 719 Dividends paid to shareholders (23,164) (23,164) Lease obligation (232) (135) (23,603) (22,580) Investments: Property, plant and equipment, net (94,277) (59,743) Other intangible assets (619) (530) (94,896) (60,273) Increase (decrease) in cash and cash equivalents (24,348) 4,314 Cash and cash equivalents, beginning of the period 125,883 136,593 Cash and cash equivalents, end of the period $ 101,535 $ 140,907 Supplemental information: Non-cash transactions: Capital expenditures unpaid at period end $ 86,821 $ 124,735 See accompanying notes to the unaudited condensed consolidated financial statements. WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tabular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 16 1. Reporting entity: Westshore Terminals Investment Corporation was incorporated under the Business Corporation Act (British Columbia) on September 28, 2010 and is domiciled in Canada. The registered and head office is located at Suite 1800, 1067 West Cordova Street, Vancouver, British Columbia, V6C 1C7. These unaudited condensed consolidated interim financial statements as at and for the three months ended March 31, 2026 comprises Westshore Terminals Inve --- stment Corporation and its subsidiaries (together referred to as the “Corporation”). The Corporation owns all of the limited partnership units of Westshore Terminals Limited Partnership (“Westshore”), a partnership established under the laws of British Columbia. The Corporation derives its cash inflows from its investment in Westshore by way of distributions on Westshore’s limited partnership units. Westshore operates a coal storage and loading terminal at Roberts Bank, British Columbia (the “Terminal”). Substantially all of Westshore’s operating revenues are derived from rates charged for loading coal onto seagoing vessels. 2. Basis of preparation: (a) Statement of compliance: These unaudited condensed consolidated interim financial statements have been prepared in accordance with IFRS Accounting Standards IAS 34, Interim Financial Reporting. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Corporation since the last annual consolidated financial statements as at and for the year ended December 31, 2025. These unaudited condensed consolidated interim financial statements do not include all of the information required for full annual financial statements prepared in accordance with IFRS. The consolidated annual financial statements of the Corporation as at and for the year ended December 31, 2025 which were prepared under IFRS are available upon request from the Corporation’s registered office, at www.westshore.com or on SEDAR+ at https://www.sedarplus.ca. These unaudited condensed consolidated interim financial statements were approved by the Board of Directors on May 1, 2026. (b) Basis of measurement: These unaudited condensed consolidated interim financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position: • derivative financial instruments are measured at fair value; • the defined benefit obligation is recognized as the present value of the defined benefit obligation, less plan assets at fair value; and • lease obligations are measured at amortized cost using the effective interest rate method. (c) Functional and presentation currency: These unaudited condensed consolidated interim financial statements are presented in Canadian dollars, which is the Corporation and its subsidiaries’ functional currency. All financial information presented in Canadian dollars have been rounded to the nearest thousand. WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tabular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 17 (d) Use of estimates and judgments: The preparation of the unaudited condensed consolidated interim financial statements in conformity with IAS 34 requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Accounting estimates considered significant in determining the Corporation’s financial results relate to the det --- ermination of the useful lives of plant and equipment, asset retirement obligations, valuation of goodwill and the measurement of defined benefit obligations. 3. Material accounting policies: The Corporation’s financial statements have been prepared using the material accounting policies and methods of computation consistent with those applied in the Corporation’s Annual Report for the year ended December 31, 2025. 4. Expenses: Recorded in operating and administrative expenses on the unaudited condensed consolidated statements of comprehensive income were the following amounts: Three months ended March 31 2026 2025 Salaries, wages and benefits $ 32,432 $ 32,688 Depreciation and amortization 8,521 8,279 Other 18,063 21,945 Expenses $ 59,016 $ 62,912 5. Insurance proceeds and miscellaneous expense: In the first quarter of 2026, Westshore was the victim of a cyber related scheme in which a fraudulent actor impersonated one of Westshore’s contractors by email for the purpose of diverting funds that Westshore intended to pay to its contractor. Westshore has made a claim under its insurance policy and is actively pursuing various legal avenues to recoup its funds, including obtaining a default judgement against the fraudulent actor and its sole director. The miscellaneous expense in Q1 2026 reflects the amount paid by Westshore to the fraudulent actor that Westshore has not secured recovery of through its ongoing legal proceedings. Including the expected insurance proceeds, the net impact of the fraud to Westshore is expected to be approximately $1.2 million. 6. Plant and equipment: For the three-month period ended March 31, 2026, $54,019,000 of construction-in-progress was added, of which $53,481,000 related to potash capital improvements. $86,821,000 of construction-in-progress was yet to be paid for at period end which decreased by $40,259,000 compared to December 31, 2025. WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tabular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 18 7. Net finance costs: Three months ended March 31 2026 2025 Interest expense (income), net $ 207 $ (719) Pension interest expense, net 189 381 Capital lease interest 5,010 5,017 Net finance costs $ 5,406 $ 4,679 8. Income tax expense: Three months ended March 31 2026 2025 Reconciliation of effective tax rate: Profit before income tax $ 26,482 $ 15,732 Statutory rate 27.00% 27.00% Expected income tax expense 7,150 4,248 Permanent differences 13 14 Actual income tax expenses $ 7,163 $ 4,262 9. Deferred tax assets and liabilities: March 31, December 31, 2026 2025 Deferred tax assets: Non-pension defined benefits liability $ 17,507 $ 18,078 Foreign exchange contracts - 1 Financing fees 112 - Lease obligation 118,971 119,033 Long term deferred revenue 207,784 184,901 Total assets 344,374 322,013 Deferred tax liabilities: Property, plant, and equipment (268,699) (246,374) Post-retirement benefits (15,761) (14,265) Right-of-use assets (107,985) (108,588) Total liabilities (392,445) (369,227) Net deferred income tax liabilities $ (48,071) $ (47,214) WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tabular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 19 10. Profit per share: Basic and diluted earnings per share: --- Three months ended March 31 2026 2025 Profit for the period $ 19,319 $ 11,470 Weighted average number of Common shares outstanding 61,769,766 61,769,766 Basic and diluted earnings per share $ 0.31 $ 0.19 The Corporation has no dilutive securities. 11. Employee future benefits: The Corporation makes contributions to one non-contributory defined benefit plan and one non-contributory defined contribution plan that provide pension benefits for employees upon retirement. The Corporation also provides two non-contributory, other post-retirement benefit plans that provide retiring allowances and other medical benefits after retirement. March 31, December 31, 2026 2025 Fair value of plan assets $ 186,786 $ 183,198 Defined benefit pension obligations (128,412) (130,364) Defined benefit pension asset 58,374 52,834 Other post-retirement benefit obligations $ (64,842) $ (66,955) WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tabular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 20 Profit and Loss: Profit and loss includes the following amounts in respect of post-retirement obligations: Pension obligations expense recognized in profit and loss Three months ended March 31, 2026 2025 Service costs: Current service costs $ 293 $ 348 Past service costs 1,304 1,465 Non-investment expenses 50 55 1,647 1,868 Net interest costs Interest cost 1,555 1,615 Expected return on plan assets (2,163) (2,000) (608) (385) $ 1,039 $ 1,483 Other post-retirement benefits expense recognized in profit and loss Three months ended March 31, 2026 2025 Current service costs $ 520 $ 494 Interest costs 797 766 $ 1,317 $ 1,260 The current and past service costs are recognized in operating expenses and net interest costs are included in net finance costs. WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tabular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 21 12. Loans and borrowings: On February 20, 2026, Westshore, as borrower, the Corporation, as obligor, and Westshore Terminals Ltd., the general partner of Westshore (the “General Partner”), entered into a credit agreement for a $165 million revolving credit facility (the “Credit Facility”) with Royal Bank of Canada and The Bank of Nova Scotia as lenders. The Credit Facility constitutes an increase to Westshore's Prior Facility. The Credit Facility is available for general corporate purposes, including Westshore’s commitments relating to the potash project. The $165 million borrowing limit under the Credit Facility reduces to $100 million on December 31, 2028 and further reduces to $50 million on December 31, 2029. The Credit Facility matures on February 20, 2030. The Credit Facility is available by way of (a) for Canadian dollar borrowings, term loans with interest accruing at Term Canadian Overnight Repo Rate Average (“CORRA”) or Daily Compounded CORRA, in each case plus the applicable CORRA Adjustment (0.29547% for one-month terms and 0.32138% for three-month terms) plus 1.25%, or prime loans, with interest accruing at the prime rate plus 0.25%, and (b) for US dollar borrowings, term loans with interest accruing at Term Secured Overnight Financing Rate (“SOFR”) plus the Term SOFR Adjustment (0.10% per annum) plus 1.25%, or base rate loans, with interest accruing --- at a base rate plus 0.25%. Repayment under the Credit Facility is on an interest-only basis until maturity, with mandatory repayments in line with the limit step-downs at the end of 2028 and 2029. The Credit Facility is secured by a pledge of all the assets of Westshore and is guaranteed by the Corporation and the General Partner. The Corporation’s borrowings are subject to certain covenants, including that the aggregate earnings before interest, taxes, depreciation and amortization (“EBITDA”) for any four consecutive fiscal quarters shall not be less than $75 million and that the aggregate distributions made by the Corporation on its common shares for any four consecutive fiscal quarters shall not exceed the Corporation’s aggregate EBITDA for such period. Under its credit facility, the Corporation is required to comply with certain financial covenants. At March 31, 2026, the Corporation was in compliance with these financial covenants. 13. Financial instruments: The carrying amounts of financial assets and liabilities reported in the unaudited condensed consolidated statement of financial position approximate their fair values. IFRS 13, Fair Value Measurement, requires classification of financial instruments within a hierarchy that prioritizes the inputs to fair value measurement. The three levels of the fair value hierarchy are: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices that are observable for the asset or liability, directly or indirectly; Level 3 – Inputs that are not based on observable market data. WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tabular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 22 Financial instruments carried at fair value, by the levels in the fair value hierarchy, are as follows: Fair Value Hierarchy March 31, December 31, Level 2026 2025 Financial assets: Derivative instruments: Foreign exchange contracts Level 2 $ 5 $ - Financial liabilities: Derivative instruments: Foreign exchange contracts Level 2 $ - $ 5 As at March 31, 2026, Westshore has entered into option collars with notional amounts totaling US$45.0 million (December 31, 2025 - US$60.0 million) to exchange U.S. dollars for Canadian dollars if the strike price drops below $1.370 or increases above $1.402 (December 31, 2025 – drops below $1.340 or increases above $1.405). These foreign exchange contracts have not been designated as hedges. The following table summarizes the gains (losses) on foreign exchange contracts for the three-month periods ended March 31, 2026 and 2025: 2026 2025 Foreign exchange contracts $ (10) $ 741 The fair value asset is recorded in other assets. The unrealized gain (loss) was recorded in foreign exchange gain (loss) in the unaudited condensed consolidated statements of comprehensive income. The carrying amounts of these contracts are equal to fair value, which is based on valuations obtained from the counterparties. The mark-to-market value is determined by the counterparty by multiplying the notional amount of the trade with the difference between the forward rate and the contract rate and discounting the resultant asset or liability by an applicable discount factor. 14. BHP Potash Capital Project: During the three months ended March 31, 2026, the Corporation invoiced $84.8 million (2025 - $87.7 m --- illion) to BHP Canada Inc., a subsidiary of BHP Group (“BHP”) related to the construction of the necessary infrastructure to enable it to handle potash. These non-refundable upfront fees received from BHP are recorded as deferred revenue and will be recognized when the corresponding future service is provided over the course of the export contract. At March 31, 2026, the total long term deferred revenue related to the BHP project is $769.6 million (December 31, 2025 - $684.8 million). BHP will retain 5% of all amounts invoiced pursuant to holdback provisions in the agreement with BHP. The 5% holdback is recorded as long term receivable, to be received in stages relating to commissioning and performance objectives. As at March 31, 2026, the holdback amount was $38.5 million (December 31, 2025 - $34.2 million). WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tabular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 23 15. Leases: The Corporation is committed to low value, short term leases related to the rental of vehicles and equipment. The Corporation has a land lease with the Vancouver Fraser Port Authority (“VFPA”) which has been identified as a material lease contract. The term of the lease is January 1, 2023 to December 31, 2051, with Westshore having further options to extend the term to December 31, 2070. Annual rent is comprised of two fixed amounts, basic rent and ancillary rent. The basic rent is fixed until December 31, 2026, and may be revised by VFPA at that time and every three years thereafter. The ancillary rent will escalate annually by 5% per annum until 2027, thereafter based on the Consumer Price Index (CPI). Additional information about this lease is presented below. No other material lease contracts were identified. Right-of-use asset 2025 Balance at January 1 $ 411,115 Depreciation charge for the year (8,938) Balance at December 31 402,177 2026 Balance at January 1 402,177 Depreciation charge for the period (2,234) Balance at March 31 $ 399,943 Lease obligation 2025 Balance at January 1 $ 441,414 Interest accretion 20,059 Lease payments (20,609) Balance at December 31 440,864 2026 Balance at January 1 440,864 Interest accretion 5,010 Lease payments (5,242) Balance at March 31 $ 440,632 Less: Current lease obligation (1,493) Long term lease obligation $ 439,139 WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tabular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 24 16. Commitments and Contingencies: The Corporation continues to enter into contracts with various vendors for the construction of the potash capital improvements. Pursuant to the agreement, BHP is required to fund the capital improvements up to the agreed budget, with Westshore being responsible for all amounts in excess of the agreed budget. As at March 31, 2026, the Corporation has commitments related to this project of $109,923,000 that have not been accrued for. Lease obligation 2026 Maturity analysis – contractual undiscounted cash flows Less than one year $ 21,604 One to five years 92,508 More than five years 917,941 Total undiscounted lease liabilities at period end $ 1,032,053 WESTSHORE TERMINALS INVESTMENT CORPORATION Notes to the Unaudited Condensed Consolidated Financial Statements (Tab --- ular amounts expressed in thousands of Canadian dollars, except share amounts) Three months ended March 31, 2026 and 2025 25 17. Related party transactions: Three months ended March 31, 2026 2025 Prior Administration agreement Westar Management Ltd. (“Westar”) $ - $ 163 Prior Management agreement: Westar Management Ltd. - base fee - 489 Westar Management Ltd. - incentive fee - 163 Administration agreement: Westar Management Ltd. 641 - Insurance premiums: Affiliate of Westar Management Ltd. 533 462 Vehicle leases: Affiliate of Westar Management Ltd. 53 55 Director fees: Director fees 226 254 Compensation of key management personnel: Salaries and short-term benefits 1,054 1,018 Post-employment benefits 31 25 Effective September 1, 2025, the Corporation, Westshore and Westar, which is a subsidiary of Jim Pattison Ltd., replaced the Prior Administration Agreement (between the Corporation and Westar) and the Prior Management Agreement (between Westshore and Westar) with a new administration agreement (the “Administration Agreement”). Pursuant to the Administration Agreement, Westar provides administration services to both the Corporation and Westshore. Key management personnel are the Corporation’s executive officers who have authority and responsibility for planning, directing and controlling the activities of the Corporation, either directly or indirectly. Corporate Office Westshore Terminals Investment Corporation 1800 – 1067 West Cordova Street Vancouver, British Columbia V6C 1C7 Telephone: 604.488.5295 Facsimile: 604.687.2601 www.westshore.com