SEDAR Interim Financial Statements

QUARTERBACK RESOURCES INC. Condensed Interim Financial Statements For the Three Months Ended January 31, 2026 (Expressed in Canadian Dollars) (Unaudited) The accompanying unaudited interim financial statements have been prepared by Management of Quarterback Resources Inc. and have not been reviewed by the Company’s auditors. (The accompanying notes are an integral part of these condensed interim financial statements) 0 QUARTERBACK RESOURCES INC. Condensed Interim Statements of Financial Position (Expressed in Canadian Dollars) (Unaudited) January 31, 2026 $ October 31, 2025 $ ASSETS Current assets Cash 550,866 130,539 Sales taxes recoverable 14,777 12,496 Prepaid expenses and deposits (Note 3) 49,500 49,500 Total current assets 615,143 192,535 Exploration and evaluation asset (Note 4) 412,163 361,637 Total assets 1,027,306 554,172 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable and accrued liabilities 29,039 18,169 Due to related party (Note 5) 43,672 11,022 Related party promissory note, net of discount (Note 5) 8,856 8,459 Total liabilities 81,567 37,650 Shareholders’ equity Share capital (Note 6) 1,147,976 507,976 Equity reserve 188,414 188,414 Subscriptions received (Note 6) – 140,000 Deficit (390,651) (319,868) Total shareholders’ equity 945,739 516,522 Total liabilities and shareholders’ equity 1,027,306 554,172 Nature of operations and continuance of business (Note 1) Approved and authorized for issuance on behalf of the Board of Directors on March 11, 2026: /s/ “Erwin Wong” /s/ “Ji Gang He” Erwin Wong, Director Ji Gang He, Director (The accompanying notes are an integral part of these condensed interim financial statements) 1 QUARTERBACK RESOURCES INC. Condensed Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars) (Unaudited) For the three months ended For the three months ended January 31, January 31, 2026 2025 $ $ Expenses Consulting fees (Note 5) 15,950 – General and administrative 4,880 – Professional fees 39,250 4,500 Rent 2,250 – Transfer agent and filing fees 8,056 – Total expenses 70,386 4,500 Net loss before other items (70,386) (4,500) Other income or expenses Accretion expense (Note 5) (397) – Net and comprehensive loss for the period (70,783) (4,500) Loss per share, basic and diluted (0.01) (0.00) Weighted average shares outstanding, basic and diluted 13,155,391 2,000,000 (The accompanying notes are an integral part of these condensed interim financial statements) 2 QUARTERBACK RESOURCES INC. Condensed Interim Statements of Changes in Equity (Expressed in Canadian Dollars) (Unaudited) Special Total Share capital Equity warrant Subscriptions shareholders’ Number of shares Amount $ reserve $ reserve $ received $ Deficit $ equity $ Balance, October 31, 2024 2,000,000 10,000 8,594 400,576 – (21,147) 398,023 Net loss for the period – – – – – (4,500) (4,500) Balance, January 31, 2025 2,000,000 10,000 8,594 400,576 – (25,647) 393,523 Balance, October 31, 2025 9,463,000 507,976 188,414 – 140,000 (319,868) 516,522 Issuance of common shares pursuant to exercise of warrants 6,400,000 640,000 – – (140,000) – 500,000 Net loss for the period – – – – – (70,783) (70,783) Balance, January 31, 2026 15,863,000 1,147,976 188,414 – – (390,651) 945,739 (The accompanying notes are an integral part of these condensed interim financial statements) 3 QUARTERBACK RESOURCES INC. Condensed Interim Statements of Cash Flow (Expressed in Canadian Dollars) (Unaudited) For the three months ended --- January 31, For the three months ended January 31, 2026 2025 $ $ Operating activities Net loss for the period (70,783) (4,500) Items not involving cash: Accretion expense 397 – Changes in non-cash operating working capital: Accounts payable and accrued liabilities 10,870 55 Taxes recoverable (2,281) (555) Due to related parties 32,650 – Net cash used in operating activities (29,147) (5,000) Investing activities Exploration and evaluation expenditures (50,526) – Net cash used in investing activities (50,526) – Financing activities Proceeds from exercise of warrants 500,000 – Net cash provided by financing activities 500,000 – Change in cash 420,327 (5,000) Cash, beginning of period 130,539 241,427 Cash, end of period 550,866 236,427 Non-cash investing and financing activities: Exploration and evaluation assets included in accounts payable 3,349 – QUARTERBACK RESOURCES INC. Notes to the Condensed Interim Financial Statements For the three months ended January 31, 2026 (Expressed in Canadian Dollars) (Unaudited) 4 1. Nature of Operations and Continuance of Business Quarterback Resources Inc. (the “Company”) was incorporated under the laws of British Columbia, Canada on April 16, 2024. The Company’s principal business plan is to acquire, explore and develop mineral properties and ultimately seek earnings by exploiting mineral claims. The Company’s registered office is 503-905 West Pender St., Vancouver, BC, V9C 1L6. On June 17, 2025, the Company started trading on the Canadian Securities Exchange (“CSE”) under the symbol “QB”. These condensed interim financial statements have been prepared on a going concern basis which assumes that the Company will realize the carrying value of its assets and discharge its liabilities in the normal course of business. As a January 31, 2026, the Company has not generated any revenue and has accumulated losses of $390,651 since inception. The Company’s continuation as a going concern is dependent upon the successful results from its mineral property exploration activities and its ability to attain profitable operations and generate funds therefrom and/or raise equity capital or borrowings sufficient to meet current and future obligations. There is no guarantee that the Company will be able to complete any of the above objectives. These factors indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. While the Company has been successful in securing financings in the past, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be available on acceptable terms. These condensed interim financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Such adjustments could be material. 2. Material Accounting Policy Information (a) Statement of Compliance and Basis of Presentation These condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting. The condensed interim financial statements should be read in conjunction with the annual financial statements for the pe --- riod ended October 31, 2025, which have been prepared in accordance with IFRS as issued by IASB. The Company uses the same accounting policies and methods of computation as in the annual financial statements for the period ended October 31, 2025. These condensed interim financial statements have been prepared on a historical cost basis, and are presented in Canadian dollars, which is the Company’s functional currency. The Company’s Board of Directors authorized issuance of the financial statements on March 11 2026. (b) Use of Estimates and Judgments The critical judgements and estimates applied in the preparation of these condensed interim financial statements are consistent with those applied in the Company’s audited financial statements as at and for the period ended October 31, 2025. (c) Recently Adopted Accounting Standards Accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have a significant impact on the Company’s interim financial statements. QUARTERBACK RESOURCES INC. Notes to the Condensed Interim Financial Statements For the three months ended January 31, 2026 (Expressed in Canadian Dollars) (Unaudited) 5 3. Prepaid Expenses and Deposits Prepaid expenses and deposits consist of the following: January 31, 2026 $ October 31, 2025 $ Reclamation bond 49,500 49,500 Total prepaid expenses and deposits 49,500 49,500 As at January 31, 2026, the Company has paid a reclamation bond of $49,500 in connection with the exploration of the Twin Property (Note 4). 4. Exploration and Evaluation Asset The Company has incurred costs on its exploration and evaluation asset as follows: Twin Property $ Balance, October 31, 2025 361,637 Acquisition costs 50,000 Exploration expenditures: Assays and sampling 526 Balance, January 31, 2026 412,163 Twin Property On May 30, 2024, the Company entered into an Option Agreement (the “Agreement”), whereby the Company was granted an option to acquire a 100% interest in 11 mining claims located in the Omineca Mining Division, British Columbia, covering 11,110 hectares (the “Twin Property”). Pursuant to the Agreement and in order to keep the option in good standing, the Company must: a) Make a total of $800,000 in payments to the optionor in the following amounts and by the times described: (i) $25,000 upon execution of the Agreement (paid); (ii) $50,000 by November 30, 2025 (paid); (iii) $75,000 by November 30, 2026; (iv) $100,000 by November 30, 2027; (v) $100,000 by November 30, 2028; (vi) $200,000 by November 30, 2029; and (vii) $250,000 by November 30, 2030. b) Issue 2,700,000 common shares to the optionor in following amounts and by the times described: (i) 200,000 shares on the date that the Company’s common shares commence trading on a recognized stock exchange (“Listing Date”) (issued on June 17, 2025); (ii) an additional 500,000 shares by the first anniversary of the Listing Date; (iii) an additional 500,000 shares by the second anniversary of the Listing Date; (iv) an additional 500,000 shares by the third anniversary of the Listing Date; (v) an additional 500,000 shares by the fourth anniversary of the Listing Date; and (vi) an additional 500,000 shares by the fifth anniversary of the Listing Date. QUARTERBACK RESOURCES INC. Notes to the Condensed Interim Financial Statements For the three months ended January 31, 2026 (Expressed in Canadian Dollars) (Unaudited) 6 4. Exploration and E --- valuation Asset (continued) c) Fund exploration and development work on the property totaling at least $4,740,000 as follows: (i) at least $140,000 by November 30, 2024 (met); (ii) at least an additional $100,000 by November 30, 2025 (met); (iii) at least an additional $500,000 by November 30, 2026; (iv) at least an additional $1,000,000 by November 30, 2027; (v) at least an additional $1,000,000 by November 30, 2028; (vi) at least an additional $1,000,000 by November 30, 2029; and (vii) at least an additional $1,000,000 by November 30, 2030. Once the above cash payments, share issuances, and exploration and development expenditures have been made, the Company shall be deemed to have exercised the option and acquired 100% of the right, title and interest in the Twin Property. Upon the deemed exercise of the option, the Company shall be obligated to make advance Net Smelter Royalty (“NSR”) payments of $50,000 per annum to the Optionor, commencing on November 30, 2031, and continuing on the 30th day of November each and every year thereafter for so long as the Company or its assignee retains its interest in the Twin Property. The vendor shall retain a 2% NSR (subject to a repurchase option of 1% of the NSR by the Company for $2,000,000) in respect of all products produced from the property. A one-time payment of $500,000 payable to the optionor by the Company is due immediately upon the public announcement by the Company of a positive feasibility study for any part of the Twin Property. The optionor may elect to receive, by notice in writing to the Company, the $500,000 payment in common shares of the Company at a deemed price equal to the Canadian Securities Exchange’s closing price of the Company’s common stock on the trading day following the day that the Company publicly discloses the positive feasibility study. 5. Related Party Transactions During the three months ended January 31, 2026, the Company incurred consulting fees of $10,500 (2025 – $nil) to the Chief Financial Officer (“CFO”) of the Company. As at January 31, 2026, the Company owed the CFO of the Company $43,672 (October 31, 2025 – $11,022), which is unsecured, non-interest bearing and due on demand. On July 29, 2025, the Company entered into a promissory note with the CFO of the Company for a principal amount of $10,000. The note is unsecured, non-interest bearing and is due on demand for repayment on or after October 1, 2026. The Company recognized a gain of $1,929 and a corresponding discount upon the issuance of the below-market interest rate promissory note. The carrying value of the promissory note will be accreted to the face value of $10,000 over the term of the note. During the three months ended January 31, 2026, the Company recognized accretion of the discount of $397 (2025 – $nil). As at January 31, 2026, the carrying amount of the related party promissory note was $8,856 (October 31, 2025 – $8,459). 6. Share Capital Authorized: Unlimited common shares without par value. During the three months ended January 31, 2026, the Company issued a total of 6,400,000 common shares pursuant to the exercise of warrants at $0.10 per share for gross proceeds of $640,000, of which $140,000 was included in subscriptions received at October 31, 2025. Escrow shares The Company has 1,800,000 common shares held in escrow as at January 31, 2026 (October 31, 2025 – 2,000,000 shares), which will be released in tranches over a 36-month period, beginning no earlier than 10 days followi --- ng the public announcement of the completion of the first-phase exploration program on the Company’s Twin Property, which occurred on January 15, 2026 (the “Initial Release Date”). The release will occur every six months following the Initial Release Date, with the initial release comprising 200,000 of the escrowed securities, and each subsequent release comprising 300,000 escrowed securities. QUARTERBACK RESOURCES INC. Notes to the Condensed Interim Financial Statements For the three months ended January 31, 2026 (Expressed in Canadian Dollars) (Unaudited) 7 7. Stock Options The Company’s Board of Directors approved a stock option plan dated March 6, 2025. The Board of directors is authorized to grant options to directors, officers, and employees to acquire up to 10% of the issued and outstanding commons shares of the Company. The exercise price will not be less than the discounted market price defined in the policies of the CSE. The options that may be granted under this plan must be exercisable for over a period of not exceeding 10 years. The following table summarizes information about the stock option activity during the three months ended January 31, 2026: Number of options Weighted average exercise price $ Balance, October 31, 2025, and January 31, 2026 900,000 0.10 Exercisable, January 31, 2026 900,000 0.10 The following table summarizes information about stock options outstanding and exercisable at January 31, 2026: Exercise price $ Expiry date Stock options outstanding Stock options exercisable Weighted average remaining contracted life (years) 0.10 June 17, 2035 900,000 900,000 9.38 * The expiry date is 10 years from the date of listing on the Canadian Securities Exchange, which occurred on June 17, 2025. 8. Warrants The following table summarizes information about the warrants at January 31, 2026: Number of warrants Weighted average exercise price $ Warrants outstanding – October 31, 2025 6,400,000 0.10 Exercised (6,400,000) 0.10 Warrants outstanding – January 31, 2026 – – QUARTERBACK RESOURCES INC. Notes to the Condensed Interim Financial Statements For the three months ended January 31, 2026 (Expressed in Canadian Dollars) (Unaudited) 8 9. Financial Instruments The Company, as part of its operations, carries financial instruments consisting of cash, accounts payable and accrued liabilities, due to related party, and related party promissory note. It is management's opinion that the Company is not exposed to significant credit, interest, or currency risks arising from these financial instruments except as otherwise disclosed. (a) Fair Values Fair value measurements are classified using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The fair value hierarchy has the following levels: • Level 1 – valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 – valuation techniques based on 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 – valuation techniques using inputs for the asset or liability that are not based on observable market data (unobservable inputs). The fair values of the Company’s financial instruments, which include cash, accounts payable and accrued liabilities, due to related party, and related party promissory note approximate their carrying values due to the relatively s --- hort-term maturity of these instruments. (b) Credit Risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. Management monitors the amount of credit extended to the parties for expense recoveries. The carrying amount of financial assets represents the maximum credit exposure. (c) Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company currently settles its financial obligations out of cash. The ability to do this relies on the Company raising debt or equity financing in a timely manner and by maintaining sufficient cash in excess of anticipated needs. (d) Market Risk Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity and equity prices. The Company does not have significant exposure to these risks. 10. Capital Management The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash and equity comprised of issued share capital, equity reserve and special warrant reserve. The Company manages its capital structure and makes adjustments to it in light of changes to economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issues or by undertaking other activities as deemed appropriate under the specific circumstances. The Company is not subject to externally imposed capital requirements. 11. Segment Reporting The Company operates in a single reportable segment, which is the acquisition, exploration and development of exploration and evaluation assets in Canada.