SEDAR Interim Financial Statements

Aduro Clean Technologies Inc. Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 (Unaudited) (Expressed in Canadian Dollars) 1 Aduro Clean Technologies Inc. Consolidated Statements of Financial Position Expressed in Canadian Dollars February 28, 2026 May 31, 2025 ASSETS Current Cash and cash equivalents $ 39,423,876 $ 6,957,846 Deposits and prepaid expenses (Note 4) 841,695 1,161,722 Other receivables (Note 5) 225,152 304,424 Deferred transaction costs - 137,051 40,490,723 8,561,043 Non-current Property and equipment (Note 6) 8,172,766 4,109,459 Right of use assets (Note 7) 114,122 163,918 8,286,888 4,273,377 Total Assets $ 48,777,611 $ 12,834,420 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Trade payables and other current liabilities (Note 11) $ 473,776 $ 468,037 Lease liability – current portion (Note 8) 65,350 60,621 539,126 528,658 Non-current Lease liability – non-current portion (Note 8) 61,294 110,332 Derivative financial liability (Note 9) 7,857,851 403,053 7,919,145 513,385 Shareholders’ equity (Note 10) Share capital 77,738,977 38,114,675 Warrant reserve 279,738 453,278 Contributed surplus 11,758,412 8,266,290 Accumulated deficit (49,457,787) (35,041,866) 40,319,340 11,792,377 Total Liabilities and Shareholders’ Equity $ 48,777,611 $ 12,834,420 Nature and continuance of operations (Note 1) Subsequent events (Note 20) Approved on behalf of the Board of Directors on April 14, 2026: “Ofer Vicus” , Director “Peter Kampian” , Director The accompanying notes are an integral part of these interim condensed consolidated financial statements. 2 Aduro Clean Technologies Inc. Consolidated Statements of Loss and Comprehensive Loss Expressed in Canadian Dollars Three months ended February 28, 2026 Three months ended February 28, 2025 Nine months ended February 28, 2026 Nine months ended February 28, 2025 Revenue (Note 12) $ - $ 63,399 $ 167,206 $ 156,542 Expenses Research and development (Note 15) 1,680,038 1,374,518 5,860,417 3,956,389 General and administrative (Note 14) 1,996,806 1,617,861 8,058,874 4,398,542 Depreciation and amortization (Note 6 & 7) 180,609 139,218 472,288 396,078 Finance costs (Note 13) 2,576 3,816 8,678 8,832 Foreign exchange 320,001 (159,849) 113,868 (188,458) 4,180,030 2,975,564 14,514,125 8,571,383 Loss before other items (4,180,030) (2,912,165) (14,346,919) (8,414,841) Other items Change in fair value of derivative financial liability (Note 9) 2,146,127 47,342 (686,956) (27,226) Other income 404,987 13,051 585,141 13,051 Gain on write-off of trade payables - - 32,813 - Loss and comprehensive loss $ (1,628,916) $ (2,851,772) $ (14,415,921) $ (8,429,016) Basic and diluted loss per share $ (0.049) $ (0.100) $ (0.456) $ (0.318) Weighted average number of common shares outstanding 32,945,095 28,643,505 31,638,492 26,522,506 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 3 Aduro Clean Technologies Inc. Consolidated Statements of Changes in Equity Expressed in Canadian Dollars Share Capital Number of Shares Amount Warrant Reserve Contributed Surplus Deficit Total Balance, May 31, 2024 21,759,130 $ 22,477,986 $ 1,328,901 $ 5,445,407 $ (22,896,076) $ 6,356,218 Shares issued on exercise of Class B Special Warrants (Note 10) 4,102,562 - - - - - Shares and warrants issued (Note 10) 834,178 2,955,153 372,155 21,536 - 3,348,844 Shares and warrants issued – US Public Offering (Note 10) 1,063,647 5,166,739 - - - 5, --- 166,739 Derivative financial liability (Note 9) - (182,137) - - - (182,137) Shares issued on exercise of warrants (Note 10) 1,013,960 4,143,399 (826,053) (21,552) - 3,295,794 Shares issued on exercise of options (Note 10) 136,231 781,790 - (258,240) - 523,550 Share-based compensation expense (Note 16) - - - 2,543,994 - 2,543,994 Net loss for the period - - - - (8,429,016) (8,429,016) Balance, February 28, 2025 28,909,708 35,342,930 875,003 7,731,145 (31,325,092) 12,623,986 Balance, May 31, 2025 29,613,178 38,114,675 453,278 8,266,290 (35,041,866) 11,792,377 Shares and warrants issued – US Public Offering (Note 10) 3,090,047 39,953,795 - - - 39,953,795 Derivative financial liability (Note 9) - (8,332,321) - - - (8,332,321) Shares issued on exercise of warrants (Note 10) 320,826 4,172,313 (173,540) - - 3,998,773 Shares issued on exercise of options (Note 10) 541,252 2,975,115 - (1,201,236) - 1,773,879 Share-based compensation expense (Note 16) - - - 5,548,758 - 5,548,758 RSUs issued and vested (Note 10) 70,000 855,400 - (855,400) - - Net loss for the period - - - - (14,415,921) (14,415,921) Balance, February 28, 2026 33,635,303 $ 77,738,977 $ 279,738 $ 11,758,412 $ (49,457,787) $ 40,319,340 The accompanying notes are an integral part of these interim condensed consolidated financial statements. 4 Aduro Clean Technologies Inc. Consolidated Statement of Cash Flows Expressed in Canadian Dollars Supplementary disclosure of non-cash activities: The accompanying notes are an integral part of these interim condensed consolidated financial statements. Nine months ended February 28, 2026 Nine months ended February 28, 2025 Operating Activities Net loss for the period $ (14,415,921) $ (8,429,016) Items not affecting cash: Depreciation and amortization 472,288 396,078 Share-based compensation expense (Note 16) 5,548,758 2,543,994 Interest expense accrued 8,678 8,370 Interest income (406,529) (13,051) Gain on write-off of trade payables (32,813) - Change in fair value of derivative financial liability (Note 9) 686,956 27,226 Changes in non-cash working capital (Note 19) 454,499 (910,133) Cash used in operating activities (7,684,084) (6,376,532) Financing Activities Issue of common shares, net of issuing costs (Note 10) 44,216,439 12,487,329 Finance lease repayments (Note 8) (52,987) (41,318) Cash provided by financing activities 44,163,452 12,446,011 Investing activities Property and equipment acquired (4,419,867) (521,596) Interest income 406,529 - Cash used in investing activities (4,013,338) (521,596) Change in cash during the period 32,466,030 5,547,883 Cash and cash equivalents, start of period 6,957,846 2,814,576 Cash and cash equivalents, end of period $ 39,423,876 $ 8,362,459 $ $ Increase in accounts payable related to property and equipment during the period 65,932 31,917 Decrease in accounts payable related to deferred transaction costs during the period (82,580) - Deferred transaction costs reclassified to share capital 137,051 - Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 5 1. NATURE AND CONTINUANCE OF OPERATIONS Aduro Clean Technologies Inc. (the “Company”) was incorporated in the Province of British Columbia on January 10, 2018, under the Business Corporations Act of British Columbia. On February 12, 2019, the Company’s shares commenced trading on the Canadian Securities Exchange (“CSE”) under --- the symbol “DFT.” On April 23, 2021, the Company changed its name to “Aduro Clean Technologies Inc.” from Dimension Five Technologies Inc. and the Company’s shares were re-listed under the symbol ACT. On July 28, 2021, the Company’s shares commenced trading on the Frankfurt Exchange in Germany under the symbol “9D50”. On November 7, 2024, the Company's common shares commenced trading on the Nasdaq Capital Market under the ticker symbol "ADUR". The Company’s primary business is the holding company of Aduro Energy Inc. (“Aduro”). Aduro is an early-stage business focusing on developing environmentally responsible technology for converting end-of-life plastics and tire rubber to specialty chemicals and fuels that replace petroleum, upgrading of heavy crude oils and the transformation of renewable oils into renewable fuels and specialty chemicals. The water based chemical recycling platform features three sector focus applications, Hydrochemolytic Plastics Upcycling ("HPU"), Hydrochemolytic Renewables Upgrading ("HRU") and Hydrochemolytic Bitumen Upgrading ("HBU"). As at February 28, 2026, the Company has developed and owns ten patents, seven granted and three pending. The registered and records office of the Company is located at Suite 2300, Bentall 5, 550 Burrard Street, Vancouver, BC, Canada V6C 2B5, and the head office of the Company is located at 542 Newbold Street, London, ON, Canada N6E 2S5. During the nine-month period ended February 28, 2026, the Company closed two underwritten U.S. public offerings (Note 10) which generated net proceeds of $11,217,825 and $28,735,970, respectively. These proceeds will be used for general working capital purposes to advance Aduro’s scale-up and path to commercialization. As at February 28, 2026, the Company had a deficit of $49,457,787 since inception and incurred negative operating cash flows. As at February 28, 2026, the Company’s working capital balance was $39,951,597 (May 31, 2025: $8,032,385) and available cash of $39,423,876 (May 31, 2025: $6,957,846). Therefore, management concludes that the Company has sufficient funds to fund its operations for the next twelve months. Ultimately the continuing operations of the Company are dependent upon generating profitable operations and obtaining funding, as required, to allow the Company to achieve its business objectives. While the Company’s management believes that there are financing opportunities available, there is no assurance that it will be able to successfully obtain additional financing as needed. These unaudited interim condensed consolidated financial statements have been prepared using accounting policies applicable to a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business as they become due and do not reflect any adjustments that would be necessary if the going concern basis was not appropriate. If the going concern basis was not appropriate, significant adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the classifications used in the consolidated statements of financial position. 2. BASIS OF PREPARATION a) Statement of compliance These unaudited interim condensed consolidated financial statements have been prepared based on the principles of IFRS Accounting Standards (IFRS) and International Accounting Standard 34, “Interim Financial Reporting” as issued by the International Accounting Standards Board (IASB), Lon --- don, and the Interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and follow the same accounting policies and methods of application as the Company’s most recent annual financial statements. The unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended May 31, 2025 and accompanying notes. These financial statements were authorized for issue by the Board of Directors on April 14, 2026. b) Basis of consolidation The financial statements of all entities controlled by the Company, including Aduro Energy Inc. and Aduro Clean Technologies Europe B.V., are included in the Financial Statements from the date control commenced. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Company’s subsidiaries have the same reporting date as the Company. Intra-group balances and transactions are eliminated on consolidation. Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 6 c) Basis of measurement The financial statements have been prepared using the historical cost basis except as detailed in the Company’s accounting policies in Note 3 to the consolidated financial statements for the year ended May 31, 2025. d) Functional and presentation currency These financial statements are presented in Canadian dollars, which is the functional currency of the Company and its subsidiaries. 3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES, AND ASSUMPTIONS The preparation of the financial statements in conformity with IFRS requires management to make estimates, judgments and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue 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. Certain of the Company’s accounting policies and disclosures require key assumptions concerning the future and other estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities or disclosures within the next fiscal year. Where applicable, further information about the assumptions made is disclosed in the notes specific to that asset or liability. The critical accounting estimates and judgments set out below have been applied consistently to all periods presented in these financial statements. a) Ability to continue as a going concern Evaluation of the ability of the Company to realize its strategy for funding its future needs for working capital involves making judgments. b) Property and equipment Property and equipment are depreciated/amortized over the estimated useful life of the asset to the asset’s estimated residual value as determined by management. Assessing the reasonableness of the estimated useful life, residual value and the appropriate depreciation/amortization methodology requires judgment and is based on management’s experience and knowledge of the industry. c) Impairment An evaluation of whether or not --- an asset is impaired involves consideration of whether indicators of impairment exist. Factors which could indicate impairment exists include: significant underperformance of an asset relative to historical or projected operating results, significant changes in the manner in which an asset is used or in the Company’s overall business strategy, the carrying amount of the net assets of the Company being more than its market capitalization or significant negative industry or economic trends. In some cases, these events are clear. However, in many cases, a clearly identifiable event indicating possible impairment does not occur. Instead, a series of individually insignificant events occur over a period of time leading to an indication that an asset may be impaired. Events can occur in these situations that may not be known until a date subsequent to their occurrence. When there is an indicator of impairment, the recoverable amount of the asset is estimated to determine the amount of impairment, if any. If indicators conclude that the asset is no longer impaired, the Company will reverse impairment losses on assets only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Similar to determining if an impairment exists, judgment is required in assessing if a reversal of an impairment loss is required. d) Warrants, stock options, restricted share units, and derivative financial liability Share purchase warrants, stock options, and derivative financial liabilities are initially valued at fair value, based on the application of the Black-Scholes option pricing model. This pricing model requires management to make various assumptions and estimates which are susceptible to uncertainty, including the volatility of the share price, expected dividend yield, expected term of the warrant or stock option and expected risk-free interest rate. Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 7 The fair value of Restricted Share Units (RSUs) is measured based on the closing price of the Company’s common shares on the date of grant. The fair value of each tranche of RSUs is recognized as expense on a straight-line basis over its vesting period. The fair value of RSUs is charged to profit or loss with a corresponding increase in contributed surplus within equity. The amount recognized as an expense is based on the estimate of the number of awards expected to vest, which is revised if subsequent information indicates that actual forfeitures are likely to differ from the estimate. Upon vesting of pr settled RSUs, the related contributed surplus associated with the RSU is reclassified into share capital. 4. DEPOSITS AND PREPAID EXPENSES February 28, 2026 $ May 31, 2025 $ Prepaid equipment 18,204 337,186 Prepaid investor relations 8,440 177,418 Prepaid insurance 487,389 361,516 Prepaid consulting fees 26,665 12,215 Prepaid conferences 33,523 14,126 Deposits 54,757 50,697 Other 212,717 208,564 Total 841,695 1,161,722 5. OTHER RECEIVABLES February 28, 2026 $ May 31, 2025 $ HST receivable 146,807 122,249 Due from related party 77,586 77,353 Services receivable - 104,765 Other 759 57 Total 225,152 304,424 The Company’s exposure to credit risk related to other receivables is disclosed in N --- ote 17. Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 8 6. PROPERTY AND EQUIPMENT The following table summarizes the Company’s property and equipment as at February 28, 2026, May 31, 2025 and May 31, 2024: Motor Vehicle $ Furniture & Fixtures $ Leasehold Improvement $ Computer Equipment $ Research Equipment $ Capital Work in Progress $ Total $ Cost: Balance at May 31, 2024 40,005 179,246 1,535,581 98,557 1,754,108 - 3,607,497 Additions 18,464 5,498 53,881 17,199 398,455 969,799 1,463,296 Balance at May 31, 2025 58,469 184,744 1,589,462 115,756 2,152,563 969,799 5,070,793 Additions 25,000 103,622 271,266 73,343 103,264 3,909,304 4,485,799 Transfers - - - - 4,657,181 (4,657,181) - Balance at February 28, 2026 83,469 288,366 1,860,728 189,099 6,913,008 221,922 9,556,592 Accumulated depreciation: Balance at May 31, 2024 11,668 43,623 337,807 35,003 50,764 - 478,865 Charge for the year 12,309 35,580 309,685 21,010 103,885 - 482,469 Balance at May 31, 2025 23,977 79,203 647,492 56,013 154,649 - 961,334 Charge for the period 12,005 31,108 255,380 22,669 101,330 - 422,492 Balance at February 28, 2026 35,982 110,311 902,872 78,682 255,979 - 1,383,826 Carrying amounts: At May 31, 2024 28,337 135,623 1,197,774 63,554 1,703,344 - 3,128,632 At May 31, 2025 34,492 105,541 941,970 59,743 1,997,914 969,799 4,109,459 At February 28, 2026 47,487 178,055 957,856 110,417 6,657,029 221,922 8,172,766 As at February 28, 2026, the Company had not identified any impairment indicators. Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 9 7. RIGHT OF USE ASSETS The following table summarizes the Company’s right of use assets as at February 28, 2026, May 31, 2025 and May 31, 2024: Total $ Cost: Balance at May 31, 2024 218,145 Additions 161,949 Disposal (144,289) Balance at May 31, 2025 235,805 Additions - Balance at February 28, 2026 235,805 Accumulated Depreciation: Balance at May 31, 2024 92,603 Charge for the year 53,833 Disposals (74,549) Balance at May 31, 2025 71,887 Charge for the period 49,796 Balance at February 28, 2026 121,683 Carrying amounts: At May 31, 2024 125,542 At May 31, 2025 163,918 At February 28, 2026 114,122 The property leases are for Aduro’s research office located at 542 Newbold Street, London, Ontario and a leased vehicle. Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 10 8. LEASE LIABILITY February 28, 2026 $ May 31, 2025 $ Gross lease obligations 135,709 188,696 Deferred finance charges (9,065) (17,743) Total lease liability 126,644 170,953 Less: Current portion 65,350 60,621 Non-current portion 61,294 110,332 Interest on lease liabilities included in finance costs (Note 13) 8,678 11,859 Incremental borrowing rate at initial application date 8.45% 8.45% Total cash outflow for the lease liability 52,987 58,649 The Company’s exposure to liquidity risk related to lease liability is disclosed in Note 17. 9. DERIVATIVE FINANCIAL LIABILITY During the nine-month period ended February 28, 2026, the Company issued a total of 1,605,021 warrants for a three- year period in connection with the Company’s underwritten U.S. public offe --- ring. 545,024 warrants were issued with an exercise price of US$10.13, 999,999 warrants were issued at an exercise price of US$16.00 and 59,998 warrants were issued at an exercise price of US$14.375. As the warrants have a US dollar exercise price which is not the functional currency of the Company, they do not meet the definition of an equity instrument and as a result have been classified as a derivative financial liability. The derivative financial liability has been recognized at fair value on the date of issuance, being $8,332,321, as calculated using Black-Scholes pricing model, based on the following assumption ranges: Risk-free interest rate From 2.49% to 2.93% Expected life 3 years Expected volatility 58.05% to 63.99% Dividend rate Nil During the year ended May 31, 2025, the Company issued a total of 53,181 warrants, for a five-year period, with an exercise price of US$4.675, in connection with the Company’s underwritten U.S. public offering. The derivative financial liability has been recognized at fair value on the date of issuance, being $182,137, as calculated using Black-Scholes pricing model, based on the following assumption ranges: Risk-free interest rate From 2.89% to 3.14% Expected life 5 years Expected volatility 63.05% to 64.06% Dividend rate Nil The derivative financial liability is remeasured at fair value at each reporting date, with any changes in fair value recognized in the statement of loss and comprehensive loss. For the nine months ended February 28, 2026, the Company recorded an increase in the fair value of the derivative financial liability of $686,956. Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 11 The following table summarizes the continuity of the derivative liability for the nine-months ended February 28, 2026: Financial Liability $ Balance at May 31, 2025 403,053 Fair value of the derivative financial liability on the date of issuance 8,332,321 Fair value changes of the derivative financial liability 686,956 Fair value of derivative liability reversed on exercise of warrants (1,564,479) Balance at February 28, 2026 7,857,851 The fair value at February 28, 2026 was estimated using the Black-Scholes pricing model, based on the following assumptions: Risk-free interest rate 2.58% to 2.81% Expected life 2.28 to 3.69 years Expected volatility 64.88% to 68.77% Dividend rate Nil 10. SHARE CAPITAL Common and Preferred Shares: Authorized: i. Unlimited common shares without par value ii. Unlimited preferred shares without par value Issued and outstanding: As at February 28, 2026, the issued and outstanding common shares of the Company consisted of 33,635,303 common shares and nil preferred shares (May 31, 2025: 29,613,178 common shares and nil preferred shares). On December 22, 2025, the Company closed an underwritten U.S. public offering of 1,739,130 common shares at a public offering price of US$11.50 per common share for gross proceeds of $27,495,993. In addition, the Company issued 869,565 warrants, for a three-year period, with an exercise price of US$16.00 and 52,172 warrants, for a three-year period, with an exercise price of US$14.375 in connection with the U.S. public offering which resulted in the recognition of a derivative financial liability (Note 9). On January 30, 2026, the Company closed an underwriter’s over-allotment option of 260,869 common shares --- at a public offering price of US$11.50 per common share for gross proceeds of $4,068,591. In addition, the Company issued 130,434 warrants, for a three-year period, with an exercise price of US$16.00 and 7,826 warrants, for a three-year period, with an exercise price of US$14.375 in connection with the U.S. public offering which resulted in the recognition of a derivative financial liability. (Note 9). On June 11, 2025, the Company closed an underwritten U.S. public offering of 947,868 common shares at a public offering price of US$8.44 per common share for gross proceeds of $10,932,008. In addition, the Company issued 473,934 warrants, for a three-year period, with an exercise price of US$10.13 in connection with the U.S. public offering which resulted in the recognition of a derivative financial liability (Note 9). On June 20, 2025, the Company closed an underwriter’s over- allotment option of 142,180 common shares at a public offering price of US$8.44 per common share for gross proceeds of $1,647,359. In addition, the Company issued 71,090 warrants, for a three-year period, with an exercise price of US$10.13 in connection with the U.S. public offering which resulted in the recognition of a derivative financial liability. (Note 9). During the nine-month period ended February 28, 2026, 194,495 June 2024 Share Warrants were exercised at an exercise price of $5.20, 227,944 options were exercised at an exercise price of $2.1125, 44,000 options were exercised at an exercise price of $2.34, 109,115 options were exercised at an exercise price of $3.25, 12,000 options were exercised at an exercise price of $3.5425, 92,308 options were exercised at an exercise price of $4.16, 37,885 options were exercised at an exercise Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 12 price of $6.50, and 18,000 options were exercised at an exercise price of $9.00, resulting in the issue of 735,747 common shares and gross proceeds of $2,785,253. Additionally, 51,497 November 2024 Share Warrants were exercised on a cashless basis. This resulted in the issuance of 25,741 common shares and the cancellation of the remaining 25,756 warrants, leading to a reclassification of $460,861 from derivative financial liability to share capital. Additionally, 100,590 June 2025 Share Warrants were exercised at an exercise price of US$10.13 generating gross proceeds of US$1,018,977 and resulting in the issuance of 100,590 common shares, with $1,103,618 reclassified from derivative financial liability to share capital. On June 17, 2024, the Company completed a non-brokered private placement pursuant to which it has issued an aggregate of 834,178 units (each, a “June 2024 Unit”), at a price of $4.225 per June 2024 Unit for gross proceeds of $3,524,400. Each June 2024 Unit is comprised of one common share and one-half of one common share purchase warrant (the “June 2024 Share Warrant”). Each June 2024 Share Warrant entitles the holder to acquire one common share at an exercise price of $5.20 per common share for a period of two years from the closing date. The warrants are also subject to an acceleration right held by the Company if the shares have a closing price of $6.175 or greater per common share on the Canadian Securities Exchange (or such other exchange on which the common shares may be traded at such time) for a period of ten (10) --- consecutive trading days at any time from the date that is four months and one day after the closing date. The Company paid cash finder’s fees of $144,054, all of which were recorded as share issuance costs, and issued 22,789 finder’s warrants (the “June 2024 Finder Warrants”) to certain finders in connection with the Offering. Each June 2024 Finder Warrant is exercisable into one share at a price of $5.20 per common share for a period of two years after the closing date. On November 8, 2024, the Company closed an underwritten U.S. public offering of 941,177 common shares at a public offering price of US$4.25 per common share for gross proceeds of US$4,000,002. In addition, the Company issued 47,058 warrants, for a five-year period, with an exercise price of US$4.675 in connection with the U.S. public offering which resulted in the recognition of a derivative financial liability (Note 9). On December 3, 2024, the Company closed a partial exercise of over-allotment option of 100,000 common shares at a public offering price of US$4.25 per common share for gross proceeds of US$425,000. In addition, the Company issued 5,000 warrants, for a five-year period, with an exercise price of US$4.675 in connection with the U.S. public offering which resulted in the recognition of a derivative financial liability (Note 9). On December 11, 2024, the Company closed a partial exercise of over-allotment option of 22,470 common shares at a public offering price of US$4.25 per common share for gross proceeds of US$95,498. In addition, the Company issued 1,123 warrants, for a five-year period, with an exercise price of US$4.675 in connection with the U.S. public offering which resulted in the recognition of a derivative financial liability (Note 9). During the year ended May 31, 2025, 272,228 February 2021 Share Warrants were exercised at an exercise price of $1.625, 313,334 April 2021 Share Warrants were exercised at an exercise price of $1.625, 338,590 July 2022 Share Warrants were exercised at an exercise price of $3.25, 589,935 April 2023 Share Warrants were exercised at an exercise price of $4.225, 38,976 April 2023 Finder Warrants were exercised at an exercise price of $4.225, 92,308 June 2024 Share Warrants were exercised at an exercise price of $5.20, 1,912 June 2024 Finder Warrants were exercised at an exercise price of $5.20, 69,500 options were exercised at an exercise price of $2.1125, 37,692 options were exercised at an exercise price of $2.34, 13,154 options were exercised at an exercise price of $3.25, 23,798 options were exercised at an exercise price of $3.5424, 20,615 options were exercised at an exercise price of $4.843, 1,619 options were exercised at an exercise price of $6.50, and 40,000 options were exercised at an exercise price of $9.00, resulting in the issue of 1,853,661 common shares and gross proceeds of $6,031,476. Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 13 Stock Options: As at February 28, 2026, the following table details the stock options outstanding: Number of Options Weighted Average Exercise Price Weighted Average Life (years) Expiry Date 620,715 $2.1125 5.16 April 30, 2031 312,463 $2.3400 5.97 February 20, 2032 123,077 $2.2750 6.30 June 20, 2032 502,816 $3.2500 1.83 December 29, 2027 172,386 $3.5425 2.53 September 11, 2028 60,231 $3.5425 2.74 November 29, 2028 731,359 $6.500 --- 0 3.43 August 6, 2029 252,000 $9.0000 3.87 January 15, 2030 738,500 $13.500 4.34 July 3, 2030 3,513,547 $6.1966 4.00 A continuity schedule of the incentive stock options is as follows: February 28, 2026 May 31, 2025 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Outstanding beginning of period 3,323,223 $ 4.0988 2,454,940 $ 2.7107 Granted 743,500 13.5000 1,136,169 7.1821 Exercised (541,252) 3.2774 (206,378) 4.0335 Cancelled (11,924) 9.4353 (61,508) 5.8689 Outstanding, end of period 3,513,547 $ 6.1966 3,323,223 $ 4.0988 Exercisable, end of period 2,679,225 $ 4.6216 2,569,926 $ 3.2297 Weighted average life (years) 4.00 4.58 The fair value of the stock options granted during the periods ended February 28, 2026 and May 31, 2025 were estimated using the Black-Scholes option pricing model based on the following assumption ranges: Risk-free interest rate from 2.92% to 3.14% Expected life from 1 to 5 years Expected volatility from 54.41% to 66.38% Dividend rate Nil For the nine months ended February 28, 2026, an expense of $4,448,958 (2025: $2,543,994) was recognized for services provided based on vesting conditions of stock options. The amount recognized reflected the vesting duration of the options. Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 14 Share Purchase Warrants: As at February 28, 2026, the following table details the share purchase warrants issued by the Company: Description Expiry Date Outstanding at February 28, 2026 Exercise price Term (years) June 2024 Share Warrants June 17, 2026 130,301 $5.200 2 June 2024 Finder Warrants June 17, 2026 20,876 $5.200 2 November 2024 Share Warrants November 7, 2029 1,684 US$4.675 5 June 2025 Share Warrants June 10, 2028 444,434 US$10.130 3 December 2025 Share Warrants December 21, 2028 999,999 US$16.000 3 December 2025 Share Warrants December 21, 2028 59,998 US$14.375 3 Total outstanding and exercisable 1,657,292 Weighted average exercise price and remaining term (in years) $18.0671 2.44 A continuity schedule of the number of share purchase warrants is as follows: Total Outstanding and exercisable, May 31, 2024 1,625,187 Issued 493,076 Cancelled/Expired/Exercised (1,719,409) Outstanding and exercisable, May 31, 2025 398,854 Issued 1,605,021 Cancelled/Expired/Exercised (346,583) Outstanding and exercisable, February 28, 2026 1,657,292 The carrying amounts of the June 2024 Finder Warrants are recognized as part of contributed surplus while the carrying amount of the other share purchase warrants are included in warrant reserve. During the nine-month period ended February 28, 2026, 194,495 June 2024 Share Warrants were exercised at an exercise price of $5.20, resulting in the issue of 194,495 common shares and $173,540 being reclassified from warrants reserve to share capital. Additionally, 51,497 November 2024 Share Warrants were exercised on a cashless basis. This resulted in the issuance of 25,741 common shares and the cancellation of the remaining 25,756 warrants, leading to a reclassification of $460,861 from derivative financial liability to share capital. Additionally, 100,590 June 2025 Share Warrants were exercised at an exercise price of US$10.13 resulting in the issuance of 100,590 common shares, leading to a reclassification of $1,103,618 from derivative financial liability to share capital. Dur --- ing the year ended May 31, 2025, 272,228 February 2021 Share Warrants were exercised at an exercise price of $1.625, 313,334 April 2021 Share Warrants were exercised at an exercise price of $1.625, 338,590 July 2022 Share Warrants were exercised at an exercise price of $3.25, 589,935 April 2023 Share Warrants were exercised at an exercise price of $4.225, 38,976 April 2023 Finder Warrants were exercised at an exercise price of $4.225, 92,308 June 2024 Share Warrants were exercised at an exercise price of $5.20, 1,912 June 2024 Finder Warrants were exercised at an exercise price of $5.20, resulting in the issue of 1,647,283 common shares and $1,247,778 being reclassified from warrants reserve to share capital and $44,166 being reclassified from contributed surplus to share capital. Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 15 The fair value of the warrants issued during the periods ended February 28, 2026 and May 31, 2025 were estimated using the Black-Scholes option pricing model based on the following assumption ranges: Risk-free interest rate from 2.49% to 3.85% Expected life from 2 to 5 years Expected volatility from 50.35% to 64.43% Dividend rate Nil Special Warrants On the closing of the transaction with Aduro Energy Inc. and Aduro’s security holders whereby the Aduro’s security holders sold their shares to the Company such that all of the issued and outstanding common shares of Aduro are now wholly owned by the Company (the "Transaction"), the Company issued 8,205,124 special warrants (the “SWs”), consisting of 4,102,562 Class A special warrants (the “ASWs”) and 4,102,562 Class B special warrants (the “BSWs”) at a deemed price equal to the Company’s discounted share price (as defined), to Aduro’s special warrant trustee to be held in trust until distributed on the first milestone (“FM”) achievement date. The SWs are convertible for no additional consideration into the Company’s Shares on a one-for-one basis upon the later of the achievement of the FM in the case of the ASWs or the achievement of the second milestone (“SM”) in the case of the BSWs, as applicable, and the distribution of the SWs by the trustee. The FM was achieved on January 18, 2022, resulting in the 4,102,562 ASWs distributed and automatically converted on a one-for-one basis into common shares of the Company for no additional consideration and the 4,102,562 BSWs special warrants were issued to the Aduro security holders in accordance with the terms of the securities exchange agreement (“SEA”). The SM was achieved on August 14, 2024, resulting in the automatic conversion of the 4,102,562 BSWs on a one-for-one basis into common shares of the Company for no additional consideration. Restricted Share Units On July 3, 2025, the Company awarded 100,000 RSUs to a consultant of the company. Each RSU represents the right to receive, once vested, one common share in the capital of the Company. The first tranche of the RSU vested immediately upon the date of award, at which time the Company issued 35,000 common shares. The second tranche of 35,000 RSU’s vested 6 months following the date of grant on January 3, 2026, and the third tranche of 30,000 RSU’s vest 12 months following the date of grant. For the nine months ended February 28, 2026, an expense of $1,099,800 (2025: Nil) was recognized for services provided based on vesting --- conditions of RSUs. The amount recognized reflected the vesting duration of the RSUs. 11. RELATED PARTY TRANSACTIONS Compensation of key management personnel Key management personnel are those persons that have authority and responsibility for planning, directing and controlling the activities of the Company, directly and indirectly, and by definition include all the directors and officers of the Company. During the three and nine months ended February 28, 2026 and 2025, compensation of key management personnel was as follows: Three months ended February 28, 2026 $ Three months ended February 28, 2025 $ Nine months ended February 28, 2026 $ Nine months ended February 28, 2025 $ Salary and related costs 278,443 208,580 1,156,572 551,671 Professional fees 72,500 102,000 255,833 292,001 Share-based compensation expense (Note 16) 474,263 251,028 1,985,339 905,184 825,206 561,608 3,397,744 1,748,856 Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 16 All transactions with related parties are in the normal course of operations and are measured at the exchange amount, being the amount of consideration established and agreed to by the related parties. As at February 28, 2026 and May 31, 2025, the outstanding balances for related parties was comprised of the following: February 28, 2026 $ May 31, 2025 $ Due to key management personnel 35,323 34,668 Due from key management personnel 77,586 77,353 These amounts are unsecured, non-interest bearing and have no specific terms of repayment. 12. REVENUE The Company entered into technical evaluation and collaboration agreements with organisations for evaluation of the Company’s HPU and HBU technology. Revenue in the amount of $167,206, recognized in the Statements of Loss and Comprehensive Loss, resulted from services completed during the nine months ended February 28, 2026, pursuant to the technical evaluation and collaboration agreements (2025: $156,542). 13. FINANCE COSTS Finance costs recognized in the Statements of Loss and Comprehensive Loss are comprised of the following: Three months ended February 28, 2026 $ Three months ended February 28, 2025 $ Nine months ended February 28, 2026 $ Nine months ended February 28, 2025 $ Lease finance charges 2,576 3,678 8,678 8,370 Other finance costs - 138 - 462 Total Finance Costs 2,576 3,816 8,678 8,832 Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 17 14. GENERAL AND ADMINISTRATIVE General and administrative expenses recognized in the Statements of Loss and Comprehensive Loss are comprised of the following: Three months ended February 28, 2026 $ Three months ended February 28, 2025 $ Nine months ended February 28, 2026 $ Nine months ended February 28, 2025 $ Salary and related costs (Note 16) 766,824 673,310 2,865,044 1,888,828 Investor relations and communication costs (Note 16) 178,183 206,125 1,269,326 581,416 Office and general 326,119 403,018 1,073,463 694,928 Professional fees (Note 16) 437,973 154,992 1,911,247 596,607 Transfer agent and filing costs 93,829 63,306 292,243 278,705 Travel 130,191 77,674 421,609 225,482 Conferences 21,268 15,198 92,735 43,365 Automobile 19,724 8,045 34,385 16,949 Bank charges 4,262 3,306 12,945 10,991 Other 18,433 12,887 85,877 61,271 Total --- general and administrative 1,996,806 1,617,861 8,058,874 4,398,542 15. RESEARCH AND DEVELOPMENT Research and development expenses recognized in the Statements of Loss and Comprehensive Loss are comprised of the following: Three months ended February 28, 2026 $ Three months ended February 28, 2025 $ Nine months ended February 28, 2026 $ Nine months ended February 28, 2025 $ Project related expenses (Note 16) 524,765 470,827 1,702,392 1,220,968 Salary costs allocated (Note 16) 1,045,121 793,000 3,871,774 2,468,255 Payments to research partners 25,958 47,284 73,761 101,482 Professional fees – patent development costs 84,194 63,407 212,490 165,684 Total research and development 1,680,038 1,374,518 5,860,417 3,956,389 Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 18 16. SHARE-BASED COMPENSATION EXPENSE Share-based payment compensation recognized in the Statements of Loss and Comprehensive Loss is comprised of the following: Three months ended February 28, 2026 $ Three months ended February 28, 2025 $ Nine months ended February 28, 2026 $ Nine months ended February 28, 2025 $ Expense recognized for services provided based on vesting conditions of stock options (Note 10) 1,064,025 932,676 4,448,958 2,543,994 Expense recognized for services provided based on vesting conditions of restricted share units (Note 10) 162,933 - 1,099,800 - Total share-based compensation expense 1,226,958 932,676 5,548,758 2,543,994 Share-based compensation expense is included in the Statement of Loss and Comprehensive loss as follows: Three months ended February 28, 2026 $ Three months ended February 28, 2025 $ Nine months ended February 28, 2026 $ Nine months ended February 28, 2025 $ Investor relations and communication Costs (Note 14) - 54,548 - 54,548 Professional fees (Note 14) 231,169 3,148 1,380,998 10,661 Salary and related costs (Note 14) 350,323 352,202 1,493,833 1,014,201 Project related expenses (Note 15) 117,644 156,207 500,029 279,282 Salary costs allocated (Note 15) 527,822 366,571 2,173,898 1,185,302 Total share-based compensation expense 1,226,958 932,676 5,548,758 2,543,994 Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 19 17. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT Interest rate risk The Company is exposed to interest rate risk. The lease liabilities have fixed cost of funds rate until maturity though subject to interest rate fluctuations if refinanced. Foreign exchange risk The Company is primarily exposed to foreign currency fluctuations in relation to its US dollar cash and trade payables. US dollar financial instruments subject to foreign exchange risk are summarized below. The Company has assessed the risk and decided not to hedge the risk. (US$) February 28, 2026 $ May 31, 2025 $ Cash and cash equivalents 24,826,555 3,462,908 Service receivable - 12,500 Trade payables (33,123) (10,218) Net US dollar exposure 24,793,432 3,465,190 As at February 28, 2026, with other variables unchanged, a $0.10 change in the Canadian dollar against the US dollar would result in a $2,479,343 pre-tax gain (May 31, 2025: $346,519 gain) from the Company’s financial instruments. Credit risk Credit risk arises from cash and cash equivalents held with a bank as well as credit --- exposure to customers in the form of outstanding trade and other receivables but excluding balances receivable from government entities. The maximum exposure to credit risk is equal to the carrying value of the Company’s cash and other receivables which reflects management’s assessment of the credit risk which at February 28, 2026 was $39,502,221 (May 31, 2025: $7,140,021). Impairment losses The allowance for doubtful accounts in respect of other receivables is used to record impairment losses unless the Company is satisfied that no recovery of the amount owing is possible. At that point, the amounts are considered unrecoverable and are written off against the financial asset directly. The Company did not record any impairment for nine months ended February 28, 2026 and the year ended May 31, 2025. Liquidity risk Liquidity risk is the exposure of the Company to the risk of not being able to meet its financial obligations as they become due. The Company manages liquidity risk through management of its cash and cash equivalents and working capital balances. The table below provides an analysis of the expected maturities of the Company’s outstanding obligations as at February 28, 2026: Due prior to Amount 2026 2027 $ $ $ Trade payables and other current liabilities 473,776 473,776 - Lease liability (Note 8) 126,644 65,350 61,294 Total expected maturities 600,420 539,126 61,294 Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 20 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income (loss) or the value of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimizing returns. Capital management Management is focused on several objectives while managing the capital structure of the Company, specifically:  Ensuring the Company has the financing capacity to execute its business plan and meet its strategic objectives while capitalizing on opportunities that add value for the Company’s shareholders;  Maintaining a strong capital base; and  Safeguarding the Company's ability to continue as a going concern, such that it provides returns for shareholders and benefits for other stakeholders. 18. OPERATING SEGMENTS Reportable Segments The business is in early stage focusing on developing environmentally responsible technology for converting end-of-life plastics and tire rubber to specialty chemicals and fuels that replace petroleum, upgrading of heavy crude oils and the transformation of renewable oils into renewable fuels and specialty chemicals. For management purposes, the Company activities are managed and monitored by senior management as one operating segment. The financial statements included are the same financial statements that management uses to monitor the performance of the Company and for the allocation of resources. Entity Wide Disclosures As at and for the period ended February 28, 2026 and the year ended May 31, 2025, the Company’s operations and assets were in Canada and the Netherlands. As at February 28, 2026, geographic information was as follows: Canada $ Netherlands $ Assets 48,662,407 115,204 Loss and comprehensive loss (14,146,383) (269,538) As at May 31, 2025, geographic informatio --- n was as follows: Canada $ Netherlands $ Assets 12,810,611 23,809 Loss and comprehensive loss (11,885,110) (260,680) As an early-stage development company, the Company was not yet generating sustainable revenues from its development activities. The revenues of $167,206 for the nine months ended February 28, 2026 related to revenue earned following the completion of services pursuant to the technical evaluation and collaboration agreements for evaluation of the Company’s HPU and HBU technology (Note 12). Aduro Clean Technologies Inc. Notes to the Unaudited Interim Condensed Consolidated Financial Statements For the three and nine months ended February 28, 2026 Expressed in Canadian Dollars 21 19. SUPPLEMENTAL CASH FLOW INFORMATION For the nine months ended February 28, 2026 and 2025, the net change in non-cash working capital balances consists of the following: February 28, 2026 $ February 28, 2025 $ Other receivables 79,272 27,638 Deposits and prepaid expenses 320,027 (1,077,489) Trade payables and other current liabilities 54,736 139,254 Project contributions payable 464 464 Net change in non-cash working capital balances 454,499 (910,133) 20. SUBSEQUENT EVENTS Exercise of options and warrants Subsequent to February 28, 2026, 5,000 June 2024 Share Warrants were exercised at an exercise price of $5.20, 32,500 options were exercised at an exercise price of $2.1125, 10,000 options were exercised at an exercise price of $2.34, 22,500 options were exercised at an exercise price of $3.25, 2,500 options were exercised at an exercise price of $3.5425, and 19,500 options were exercised at an exercise price of $6.50, for total gross proceeds of $326,788.