SEDAR Interim Financial Statements

GEOMEGA Resources Inc. Unaudited Condensed Interim Consolidated Financial Statements For the three and six months ended November 30, 2025 The accompanying financial statements have been prepared by the management of Geomega Resources Inc. and have not been reviewed by the auditors GEOMEGA RESOURCES INC. Consolidated Statements of Financial Position (in Canadian dollars) 2 Note As at November 30, 2025 (Unaudited) As at May 31, 2025 (Audited) $ $ Assets Current assets Cash and cash equivalents 4 2,655,458 999,043 Accounts receivable 8 673,911 337,258 Tax credits and government grants receivable 9 2,235,178 1,483,442 Investments 5 23,170 22,000 Investment in a listed company 6 1,264,286 - Prepaid expenses and others 489,218 305,529 Inventories 29,456 25,092 Current assets 7,370,677 3,172,364 Non-current assets Investment in an associate 7 - 252,857 Deposits on equipment 73,807 188,803 Property, plant and equipment 10 2,487,468 2,203,060 Right-of-use assets 11 1,788,832 1,863,140 Non-current assets 4,350,107 4,507,860 Total assets 11,720,784 7,680,224 Liabilities Current liabilities Trade and other payables 1,022,799 978,699 Deferred revenue 206,814 459,969 Deferred grants 13 59,417 623,435 Current portion of the lease liabilities 14 36,765 30,146 Current portion of convertible debentures 12 236,611 40,455 Current liabilities 1,562,406 2,132,704 Non-current liabilities Lease obligations 14 2,171,471 2,192,339 Convertible debentures 12 1,570,583 1,641,709 Non-current liabilities 3,742,054 3,834,048 Total liabilities 5,304,460 5,966,752 Equity Share capital 42,482,598 38,778,372 Reserves 15 1,148,150 1,167,347 Equity component of convertible debentures 262,018 268,795 Contributed surplus 5,044,368 5,020,368 Deficit (42,520,810) (43,521,410) Total equity 6,416,324 1,713,472 Total liabilities and equity 11,720,784 7,680,224 The accompanying notes are an integral part of these condensed interim consolidated financial statements. GEOMEGA RESOURCES INC. Consolidated Statements of Income and Comprehensive Income (Unaudited, in Canadian dollars) 3 The accompanying notes are an integral part of these consolidated Financial Statements. Three months ended November 30, Six months ended November 30, Note 2025 2024 2025 2024 $ $ $ $ Licensing 1,452,000 - 1,452,000 - Technical support and development 326,211 59,670 569,568 201,335 Revenues 1,778,211 59,670 2,021,568 201,335 Operating expenses Exploration and evaluation expenses, net of tax credits 3,746 162,769 7,222 251,839 Research and development expenses, net of tax credits 16 540,049 356,524 1,226,147 894,220 Salaries, employee benefits and share- based compensation 188,053 180,751 325,199 366,133 Technology royalties 363,000 - 363,000 - Professional fees 92,868 54,034 203,508 161,420 Travel, conference and investor relations 72,325 23,089 94,467 48,781 Administration 27,432 43,288 50,341 92,576 Filing fees 28,664 17,447 44,921 31,241 Rent 30,409 18,012 60,411 54,656 Depreciation of property, plant and equipment 13,274 - 26,047 - Depreciation of right-of-use assets 37,155 37,155 74,308 74,311 Insurance, taxes and permits 11,805 21,084 23,802 42,278 Government grants on operating expenses (386,616) (328,439) (754,350) (874,053) Operating profit (loss) 756,047 (526,044) 276,545 (942,066) Other income (expenses) Investment income 3,753 10,041 6,511 26,902 Finance costs (157,838) (71,112) (312,366) (142,220) Gain (loss) on foreign exchange (2,175) (13,954) 5,135 (14,015) Option income on exploration and e --- valuation properties 13,261 - 13,261 - Gain on disposal of property, plant and equipment 86 - 86 - Gain in fair value variation of investments in a listed company 168,571 48,813 168,571 98,713 Share of gain (loss) of associate - (11,179) 1,047 (32,539) Impairment of an investment in an associate - (73,107) - (220,318) Gain on loss of significant influence in an associate 7 841,810 - 841,810 - 867,468 (110,498) 724,055 (283,477) Profit (loss) before taxes 1,623,516 (636,542) 1,000,600 (1,225,543) Income taxes - - - - Net and comprehensive income (loss) 1,623,516 (636,542) 1,000,600 (1,225,543) Basic earnings per share 0.011 (0.004) 0.007 (0.009) Diluted earnings per share 17 0.009 (0.004) 0.005 (0.009) Weighted average number shares outstanding - basic 153,500,763 143,401,521 149,506,186 143,401,521 Weighted average number of shares outstanding - diluted 17 185,843,407 143,401,521 184,499,334 143,401,521 GEOMEGA RESOURCES INC. Consolidated Statements of Changes in Equity (Unaudited, in Canadian dollars) Note Number of shares outstanding Share Capital Reserves Equity Component of Convertible Debentures Contributed Surplus Deficit Total Equity $ $ $ $ $ $ Balance at May 31, 2025 143,401,521 38,778,372 1,167,347 268,795 5,020,368 (43,521,410) 1,713,472 Net and comprehensive income - - - - - 1,000,600 1,000,600 Conversion of convertible debentures 434,371 52,842 - (6,777) - - 46,065 Warrants exercised 15,703,760 3,359,834 - - - - 3,359,834 Options exercised 1,368,355 291,550 (187,550) - - - 104,000 Options expired - - (24,000) - 24,000 - - Share-based compensation - - 192,353 - - - 192,353 Balance at November 30, 2025 160,908,007 42,482,598 1,148,150 262,018 5,044,368 (42,520,810) 6,416,324 Note Number of shares outstanding Share Capital Reserves Contributed Surplus Deficit Total Equity $ $ $ $ $ Balance at May 31, 2024 143,401,521 38,778,372 990,705 4,775,095 (40,936,686) 3,607,486 Net and comprehensive loss - - - - (1,225,543) (1,225,543) Options expired - - (141,176) 141,176 - - Share-based compensation - - 203,018 - - 203,018 Balance at November 30, 2024 143,401,521 38,778,372 1,052,547 4,916,271 (42,162,229) 2,584,961 The accompanying notes are an integral part of these consolidated Financial Statements. GEOMEGA RESOURCES INC. Consolidated Statements of Cash Flow (Unaudited, in Canadian dollars) Six months ended November 30, Note 2025 2024 $ $ Operating activities Net and comprehensive income (loss) 1,000,600 (1,225,543) Adjustments for: Share-based compensation 192,353 203,018 Unrealized loss on foreign exchange rate - (566) Depreciation of property, plant and equipment 192,828 105,911 Impairment of deposits on property, plant and equipment - 1,252 Depreciation of right-of-use assets 74,308 74,308 Finance costs for the accretion of the convertible debentures 171,095 - Share of (revenue) loss of an associate (1,047) 32,539 Impairment of an investment in an associate - 220,318 Unrealized gain on variation of value of an investment in a listed company (168,572) (98,713) Gain on loss of significant influence in an associate (841,810) - Changes in non-cash working capital items 18 (1,211,580) 432,438 Cash flows from operating activities (591,825) (255,038) Investing activities Acquisition of short-term investments (1,170) - Variation of deposits on acquisition of property, plant and equipment 221,380 (599,754) Acquisitions of property, plant and equipment (1,655,965) (361,259) Variation of government grants for the purchase of property, pla --- nt and equipment 12 234,410 33,780 Cash flows from investing activities (1,201,345) (927,233) Financing activities Exercise of stock options 104,000 - Exercise warrants 3,359,834 - Repayments of lease liabilities (14,249) (8,546) Cash flows from financing activities 3,449,585 (8,546) Net change in cash 1,656,415 (1,190,817) Cash and cash equivalents – beginning 999,043 2,051,333 Cash and cash equivalents – ending 2,655,458 860,516 The accompanying notes are an integral part of these consolidated Financial Statements. GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 6 1. NATURE OF OPERATIONS AND GOING CONCERN Geomega Resources Inc. (the “Corporation”) is incorporated under the Canada Business Corporations Act and is engaged in the acquisition, exploration and evaluation of mining properties in Canada. Through its private and wholly owned subsidiary Innord, the Corporation is developing innovative technologies for extraction and separation of rare earth elements and other critical and strategic metals from its mining properties and other mining and industrial waste, in an environmentally sustainable way. The Corporation’s shares are listed on the TSX Venture Exchange (the “Exchange”) under symbol GMA. The address of the Corporation's registered office and principal place of business is 75, de Mortagne Boulevard, Boucherville, Quebec, Canada, J4B 6Y4. These consolidated Financial Statements (the “Financial Statements”) were approved by the Corporation’s Board of Directors on January 29, 2026. The Financial Statements have been prepared in accordance with valid accounting principles in a context of going concern which provides that the Corporation will be able to realize its assets and pay its debts in the normal course of its activities. In assessing the validity of the going concern principle, management considers all available data regarding the future, which represents at least, but is not limited to, the twelve months following the end of the reporting period. For the six months ended November 30, 2025, the Corporation recorded a net and comprehensive gain of $1,000,600 and accumulated a deficit of $42,520,810 as of that date. As of November 30, 2025, the Corporation had a working capital of $5,808,271. Any funding shortfall may be met in the future in a number of ways including but not limited to, the issuance of new equity or debt financing. While management has been successful in securing financing in the past, there can be no assurance that it will be able to do so in the future or that these sources of funding or initiatives will be available to the Corporation or that they will be available on terms which are acceptable to the Corporation. 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES 2.1 Declaration of conformity The Financial Statements have been prepared in accordance with International Financial Reporting Standards (“International Financial Reporting Standards” or “IFRS”) as published by the International Accounting Standards (“IAS”) and which are applicable for the preparation of interim consolidated financial statements, in particular International Accounting Standard 34 (“International Accounting Standard 34” or “IAS 34”) - Interim financial information. The Financial Statements therefore do not include all the information and notes required under IFRS for the purposes of annual financial statements. 2.2 Basis of Presentation The Financial Statements shou --- ld be read in conjunction with the audited annual financial statements for the year ended May 31, 2025, which have been prepared in accordance with IFRS. The accounting conventions and the calculation and presentation methods used in the preparation of the Financial Statements comply with the conventions and methods used for the previous financial year ended May 31, 2025, except for the following: Loss of significant influence When the Corporation loses significant influence over an associate, the equity method of accounting is discontinued as of the date significant influence is lost. Any retained interest in the former associate is remeasured at fair value at that date, and the difference between the fair value of the retained interest and the carrying amount of the investment is recognized in profit or loss. GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 7 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONT’D) Investments in listed companies Investments in equity instruments that are listed on a public equity market and over which the Corporation does not have significant influence are accounted for as financial assets. Such investments are measured at fair value through profit or loss. Fair value is determined using quoted market prices on an active market at the reporting date. Subsequent changes in fair value are recognized in profit or loss. Revenue recognition Revenues are derived from the following sources: (i) research and development services performed for third parties, (ii) technology licensing arrangements, and (iii) option income from the optioning of mineral properties. i) Research and development services Research and development services revenues are recognized in the statement of income and comprehensive income over time, as the related services are performed, all contractual obligations are satisfied, and the corresponding consideration is received or there is reasonable assurance of collection. Revenues are measured at the fair value of the consideration received or receivable. Revenue is recognized in proportion to the progress toward completion of the related performance obligations. Progress is generally measured by comparing actual labour hours incurred to date with the total estimated labour hours required to complete the research project, as this method provides the most faithful depiction of the transfer of services to the customer. When no clearly defined milestones exist to measure progress, the hours-to-hours method is applied. In the early stages of certain contracts, when the Corporation is unable to reliably estimate the outcome of the project but expects to recover its costs, revenue is recognized to the extent of costs incurred until such time as a reliable estimate can be made. Amounts received from customers prior to the performance of services are recorded as contract liabilities (deferred revenues), while amounts recognized as revenue in excess of amounts invoiced are recorded as contract assets (accounts receivable) in the statement of financial position. ii) Technology licensing revenue The Corporation also generates revenue from licensing proprietary technology and related intellectual property. Technology licensing arrangements may include the transfer of technical know-how, access to technical documentation and databases, and the right to use the licensed technology for specified purposes. Technology licensing revenue is r --- ecognized at a point in time when control of the license is transferred to the customer, which generally occurs when the customer obtains access to the licensed intellectual property and can direct its use and obtain substantially all of the remaining benefits from it. Such licenses are assessed as right-to-use licenses, as the intellectual property is functional at the time of transfer and the Corporation is not required to undertake activities that significantly affect the licensed intellectual property after transfer. Amounts recognized as revenue in excess of amounts invoiced are recorded as contract assets (accounts receivable) in the statement of financial position. GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 8 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES (CONT’D) When a contract includes both a license and technical services, the transaction price is allocated to each performance obligation based on their relative standalone selling prices, and revenue is recognized in accordance with the satisfaction of each performance obligation. iii) Option income Option income is recognized when received or when there is reasonable assurance of collection. Shares received under option agreements are measured at fair value at the date of receipt. Fair value is determined using quoted market prices when the shares are traded on an active market. When no active market exists, fair value is determined using appropriate valuation techniques, including the Black-Scholes option pricing model, adjusted for discounts related to lack of marketability and applicable regulatory restrictions. Technology royalties The Corporation is required to pay technology royalties to a third party based on a percentage of certain technology licensing revenues. Such royalties are recognized as operating expenses in the same period as the related licensing revenues are recognized. Earnings per share Earnings per share are calculated in accordance with IAS 33. 3. CRITICAL ACCOUNTING ESTIMATES, JUDGMENTS AND ERRORS In preparing the Financial Statements, the main judgments made by management in applying the Corporation's accounting policies and the main sources of estimation uncertainty were the same as those that applied to the annual financial statements for the fiscal year ended May 31, 2025. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents held as November 30, 2025 include the following investments: - Guaranteed investment certificates totalling $2,250,000, bearing interest at rates of 1.80% and 2.00% and maturing on November 4, 2026 and November 12, 2026. Interest and principal may be cashed at any time without penalty. 5. INVESTMENTS The investment as at November 30, 2025 consist of guaranteed investment certificates that are non- cashable prior to maturity. The certificates totalize $23,170 in nominal value, bear interest at 3% and expire on October 2, 2026. 6. INVESTMENT IN A LISTED COMPANY The Corporation holds marketable securities that are listed on a public equity market. During the period, the Corporation transferred its investment in Auriginal Mining Corp. (formerly Kintavar Exploration Inc.) from Investment in an associate to Investment in a listed company following the loss of significant influence over the investee in September 2025 (note 7). GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 9 6. INVESTMEN --- T IN A LISTED COMPANY (CONT’D) The fair value of the investment is determined based on quoted market prices on an active market (Level 1 fair value measurement). The investment is summarized as follows: As at November 30, 2025 As at May 31, 2025 $ $ Classified as current asset Auriginal Mining Corp. - 16,857,143 common shares 1,264,286 - Investment in a listed company 1,264,286 - 7. INVESTMENT IN AN ASSOCIATE Auriginal Mining Corp. (formerly Kintavar Exploration Inc.) was previously the Corporation’s only associate. Auriginal is incorporated in Canada, where its exploration and evaluation activities on mineral-bearing properties are conducted. As at May 31, 2025, the Corporation held 16,857,143 common shares, representing 13.11% of the issued and outstanding shares and voting rights of Auriginal. Up to September 2025, the Corporation had significant influence over Auriginal and accounted for its investment accordingly. Loss of significant influence In September 2025, Auriginal completed a transaction that resulted in: - a change of control; - a significant issuance of new shares; and - the appointment of new management and a reconstituted board of directors. Following this transaction, the Corporation’s ownership interest decreased to approximately 7.6%, and the Corporation no longer had the ability to participate in Auriginal’s financial and operating policy decisions. Accordingly, the Corporation determined that it lost significant influence over Auriginal as of September 15, 2025. As a result, the investment ceased to qualify as an associate and was transferred to Investment in a listed company during the period (note 6). Six months ended November 30, 2025 Year ended May 31, 2025 $ $ Balance at beginning of period 252,857 421,429 Share of net and comprehensive loss 1,047 (176,400) Impairment to fair market value - 7,828 Transfer to Investment in a listed company (253,904) - Balance at end of period - 252,857 GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 10 8. ACCOUNTS RECEIVABLE As at November 30, 2025 As at May 31, 2025 $ $ Trade receivables 129,967 45,699 Sales taxes receivable 29,055 277,371 Interest receivables 2,668 1,967 Other accounts receivable 12,221 12,221 Contract Assets 500,000 - Accounts receivable 673,911 337,258 9. TAX CREDITS AND GOVERNMENT GRANTS RECEIVABLE As at November 30, 2025 As at May 31, 2025 $ $ Refundable tax credits 301,263 6,582 Government grants 1,933,915 1,476,860 Tax credits and government grants receivable 2,235,178 1,483,442 Refundable tax credits are related to eligible mining exploration expenses incurred in the province of Quebec and the refundable portion of the research and development (SR&ED) and Quebec Investment & Innovation (C3i) tax credits. The government grants are related to expenditures on research and development incurred by the corporation and its subsidiary. 10. PROPERTY, PLANT AND EQUIPMENT Leasehold Improvements Equipment 1 Total $ $ $ Six months ended November 30, 2025 Opening net book value 935,080 1,267,980 2,203,060 Additions 546,202 1,109,763 1,655,965 Government grants (385,037) (793,692) (1,178,729) Depreciation (26,047) (166,781) (192,828) Closing net book value 1,070,198 1,417,270 2,487,468 As at November 30, 2025 Cost 1,098,419 2,185,377 3,283,796 Accumulated depreciation (28,221) (768,107) (796,328) Closing net book value 1,070,198 1,417,270 2,487,468 1. The equipment category includes equipment us --- ed R&D activities. Depreciation of property plant and equipment related to R&D projects is recorded within R&D expenses. An amount of $166,781 was recorded as R&D expenses during the six months ended November 30, 2025. GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 11 10. PROPERTY, PLANT AND EQUIPMENT (CONT’D) Leasehold Improvements Equipment Total $ $ $ Fiscal 2025 Opening net book value 84,134 669,540 753,674 Additions 2,093,401 1,982,683 4,076,084 Government grants (1,237,039) (851,825) (2,088,864) Depreciation (5,416) (461,039) (466,455) Impairment - (71,379) (71,379) Closing net book value 935,080 1,267,980 2,203,060 As at May 31, 2025 Cost 937,254 1,869,306 2,806,560 Accumulated depreciation (2,174) (601,326) (603,500) Closing net book value 935,080 1,267,980 2,203,060 11. RIGHT-OF-USE ASSETS Equipment Industrial buildings Total $ $ $ Six months ended November 30, 2025 Opening net book value 17,575 1,845,565 1,863,140 Depreciation (2,850) (71,458) (74,308) Closing net book value 14,725 1,774,107 1,788,832 As at November 30, 2025 Cost 28,500 2,143,732 2,172,232 Accumulated depreciation (13,775) (369,625) (383,400) Closing net book value 14,725 1,774,107 1,788,832 Equipment Industrial buildings Total $ $ $ Fiscal 2025 Opening net book value 23,275 1,988,480 2,011,755 Depreciation (5,700) (142,915) (148,615) Closing net book value 17,575 1,845,565 1,863,140 As at May 31, 2025 Cost 28,500 2,143,732 2,172,232 Accumulated depreciation (10,925) (298,167) (309,092) Closing net book value 17,575 1,845,565 1,863,140 GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 12 12. CONVERTIBLE DEBENTURES As at November 30, 2025 As at May 31, 2025 $ $ Balance, opening 1,682,164 - Addition - 1,628,519 Accretion expense 171,095 53,645 Conversion (46,065) - Balance, ending 1,807,194 1,682,164 Balance, current (236,611) (40,455) Balance, non-current 1,570,583 1,641,709 During the period, a portion of the convertible debentures, including amounts accrued through accretion under the effective interest method, was converted into common shares of the Corporation. Upon conversion, the carrying amount of the liability component corresponding to the portion converted was derecognized and credited to share capital, together with the related proportionate amount of the equity component. No gain or loss was recognized in profit or loss as a result of the conversion. 13. DEFERRED GRANTS As at November 30, 2025 As at May 31, 2025 $ $ Deferred grants attributable to the purchase of inventories 164 1,502 Deferred grants attributable to the purchase of property, plant and equipment 38,742 405,749 Deferred grants attributable to operations 20,511 216,184 Deferred grants 59,417 623,435 14. LEASE OBLIGATIONS Six months ended November 30, 2025 Year ended May 31, 2025 $ $ Balance, opening 2,222,485 2,240,828 Repayments of lease liabilities (14,249) (18,343) Balance 2,208,236 2,222,485 Balance, current (36,765) (30,146) Balance, non-current 2,171,471 2,192,339 GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 13 15. RESERVES 15.1 Warrants The Corporation’s warrants were as follows: Six months ended November 30, 2025 Year ended May 31, 2025 Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price $ $ Balance, opening 16, --- 517,788 0.22 16,517,788 0.22 Exercised (15,703,760) 0.21 - - Expired (110,000) 0.25 - - Balance, end 704,028 0.40 16,517,788 0.22 Warrants outstanding as at November 30, 2025 are as follows: Number of warrants Exercise price Expiry date $ 704,028 0.40 February 8, 2026 704,028 15.2 Share-based Compensation A) Omnibus Incentive Plan. On October 25, 2023, the Corporation adopted an omnibus equity incentive plan (the “Omnibus Plan”) to replace the previous stock option plan. The Omnibus Plan permits the grant of stock options (“Options”), restricted share units (“RSUs”), performance share units (“PSUs”) and deferred share units (“DSUs”) (collectively, the “Awards”) to eligible directors, officers, employees and consultants of the Corporation and its subsidiaries. Awards granted under the Omnibus Plan are generally settled in common shares of the Corporation, unless otherwise determined by the Board of Directors. On September 12, 2025, the Board of Directors approved amendments to the Omnibus Plan to provide that the aggregate number of common shares reserved for issuance pursuant to all Awards granted under the Omnibus Plan shall not exceed 10% of the Corporation’s issued and outstanding common shares from time to time. As a result of this amendment, the Omnibus Plan is now a rolling plan in respect of all Awards. The amended Omnibus Plan was subsequently ratified by shareholders at the annual general meeting held on October 22, 2025. GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 14 15. RESERVES (CONT’D) B) Stock Options A summary of the Corporation’s Options outstanding is as follows: Six months ended November 30, 2025 Year ended May 31, 2025 Number of options Weighted Average Exercise Price Number of options Weighted Average Exercise Price $ $ Balance, opening 6,660,000 0.20 7,220,500 0.22 Issued 1,850,000 0.335 2,300,000 0.10 Exercised (1,925,000) 0.17 - - Expired (250,000) 0.165 (2,453,000) 0.18 Forfeited (175,000) 0.10 (407,500) 0.13 Balance, end 6,160,000 0.24 6,660,000 0.20 Balance, end, exercisable 2,822,500 0.27 4,472,500 0.24 Options outstanding as of November 30, 2025 are as follows: Number of options outstanding Number of options exercisable Exercise Price Expiry date $ 800,000 800,000 0.34 January 27, 2026 1,310,000 1,310,000 0.305 October 27, 2026 375,000 281,250 0.215 January 25, 2029 1,725,000 431,250 0.10 November 20, 2029 100,000 - 0.11 December 1, 2029 1,850,000 - 0.335 October 22, 2030 6,160,000 2,822,500 On October 22, 2025, the Corporation granted 1,575,000 Options to employees and 275,000 Options to consultants at a price of $0.335. Options granted to employees are valid for 5 years while options granted to consultants are valid for 2 years. The fair value of the options granted was estimated using the Black-Scholes model based on the following assumptions: risk-free interest rate of 2.5247%, expected volatility of 89.41%, no dividend per share and expected duration of 3.75 years options. Employee Options vest over a period of 3 years in increments of 25% in the first two years and 50% in the last year. Consultant Options vest over a period of one year in increments of 25% per quarter The expected life was estimated by benchmarking comparable situations for companies that are similar to the Corporation. The expected volatility was determined by calculating the historical volatility of the Corporation’s share price back from the date of grant an --- d for a period corresponding to the expected life of the Options. GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 15 15. RESERVES (CONT’D) C) Restricted Share Units A summary of the Corporation’s RSUs outstanding under the Omnibus Plan is as follows: Six months ended November 30, 2025 Year ended May 31, 2025 Balance, opening 2,316,000 1,302,000 Issued 300,000 1,200,000 Forfeited - (186,000) Balance, end 2,616,000 2,316,000 On October 22, 2025, the Corporation granted 300,000 RSUs to the management team for a total value of $100,500. From the granting, the RSUs vest in increments of 50% every 12 months. The RSUs can be settled after 3 years. D) Deferred Share Units A summary of the Corporation’s DSUs outstanding under the Omnibus Plan is as follows: Six months ended November 30, 2025 Year ended May 31, 2025 Balance, opening 1,778,000 971,000 Issued 326,000 900,000 Forfeited - (93,000) Balance, end 2,104,000 1,778,000 On October 22, 2025, an aggregate of 326,000 DSUs were issued to the members of the Board of Directors with a total fair value of $109,210. The DSUs vest in a single installment one year from the date of grant. GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 16 16. RESEARCH AND DEVELOPMENT EXPENSES Three months ended November 30, Six months ended November 30, 2025 2024 2025 2024 $ $ $ $ Salaries and benefits 490,215 246,564 939,231 472,009 Share-based compensation 41,907 24,483 68,209 50,743 Professional fees 14,921 10,410 32,538 34,136 Material and furniture 59,103 179,795 121,984 198,038 General and administration 45,634 7,332 67,422 53,446 Depreciation of property, plant and equipment 51,688 53,402 166,781 106,541 Impairment of property, plant and equipment (4,496) - (11,095) 1,252 Total R&D expenses 698,972 521,987 1,385,070 916,164 Tax credits (158,923) (165,463) (158,923) (21,944) Net R&D expenses 540,049 356,524 1,226,147 894,220 17. EARNINGS PER SHARE Basic earnings per share are calculated by dividing the net gain attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated by adjusting the weighted average number of common shares outstanding to reflect the potential dilution from outstanding stock options, warrants, restricted share units, deferred share units and the conversion feature of the Corporation’s convertible debentures. For the three and six-month periods ended November 30, 2025, diluted earnings per share include the dilutive effect of these instruments, as the Corporation reported a net gain. 18. ADDITIONAL INFORMATION RELATING TO THE CONSOLIDATED STATEMENT OF CASH FLOW Change in non-cash working capital items Six months ended November 30, 2025 2024 $ $ Accounts receivable (584,969) 643,661 Tax credits and government grants receivable (30,514) (531,655) Prepaid and other expenses (183,689) 34,960 Inventories (7,680) 87 Trade and other payables 44,100 226,935 Deferred grants – portion attributable to operating expenses (195,673) 176,422 Deferred revenues (253,155) (117,972) (1,211,580) 432,438 GEOMEGA RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited, in Canadian dollars) 17 18. ADDITIONAL INFORMATION RELATING TO THE CONSOLIDATED STATEMENT OF CASH FLOW (CONT’D) Non-Cash Transactions Six months ended November 30, 2025 2024 $ $ --- Government grants receivable for the acquisition of inventories 1 978 - Government grants receivable for deposits made on the purchase of property, plant and equipment (106,384) 368,084 Government grants receivable for the purchase of property, plant and equipment 577,312 495,977 Property, plant and equipment acquired in accounts payables - 224,001 Amortisation of deferred grant against the purchase of property, plant and equipment - 69,824 Transfer of an investment in an associate to an investment in a listed company 1,095,714 - 19. SUBSEQUENT EVENTS Subsequent to November 30, 2025 and until January 29, 2026, 768,750 stock options of the Corporation were exercised, and 3,565,846 shares were issued from the conversion of convertible debentures. Also subsequent to November 30, 2025, the Corporation received confirmation of a $750,000 interest-free repayable contribution from Canada Economic Development for Quebec Regions (CED) under the Regional Economic Growth through Innovation program. The contribution is intended to support the construction and equipping of an integrated research, development and piloting facility at the Corporation’s Saint-Hubert site. The contribution will be used primarily for the acquisition of laboratory and piloting equipment and related infrastructure. Repayment is expected to commence 36 months following project completion, anticipated in fiscal 2026, and will be made in 60 equal monthly instalments. No amounts were received nor recognized in the financial statements as at the reporting date.