SEDAR Interim Financial Statements

Condensed Interim Consolidated Financial Statements (Expressed in Canadian Dollars) Britannia Life Sciences Inc. December 31, 2025 and 2024 Responsibility for Consolidated Financial Statements The Company’s management is responsible for the integrity and fairness of presentation of these condensed interim consolidated financial statements. The condensed interim consolidated financial statements have been prepared by management, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, for approval by the Board of Directors. Where necessary, management has made judgements and estimates in preparing the condensed interim consolidated financial statements and such statements have been prepared within acceptable limits of materiality. Management maintains a system of internal accounting controls to ensure, on a reasonable and cost-effective basis, that the financial information is timely reported and is accurate and reliable in all material respects and that the Company’s assets are appropriately accounted for and adequately safeguarded. Notice to Reader Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying financial statements of the Company have been prepared by and are the responsibility of the Company's management and have not been reviewed by the Company’s auditor. /s/ Peter Shippen Chief Executive Officer March 2, 2026 Britannia Life Sciences Inc. Condensed Interim Consolidated Statements of Financial Position Expressed in Canadian Dollars Note December 31 2025 March 31 2025 $ $ ASSETS Current assets Cash 1,818,323 7,848,756 Marketable securities 4(b) 14,067,537 - Contingent consideration 4(a) 459,160 1,736,779 Accounts receivable 554,042 228,111 Option 13 - 87,355 Prepaid expenses 67,608 24,374 Total current assets 16,966,671 9,925,375 Non-Current assets Property and equipment 3 94,996 142,959 Investment 4(b) - 1,542,147 Investment in debenture 5 5,000,000 - Total non-current assets 5,094,995 1,685,106 Total Assets 22,061,666 11,610,481 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities 13 4,582,555 3,451,791 Other debt 8 86,337 99,608 Current portion of lease liability 6 83,152 72,338 Director's loan 7 29,110 29,335 Total current liabilities 4,781,154 3,653,072 Non-Current Liabilities Lease liability 6 49,960 114,483 Convertible debentures 4(b) - 1,542,147 Total non-current liabilities 49,960 1,656,630 Total Liabilities 4,831,114 5,309,702 Shareholders' Equity Share capital 9 17,107,347 17,107,347 Contributed surplus 9 3,409,434 3,409,434 Warrant reserve 9 49,514 49,514 Accumulated other comprehensive loss (1,072,339) (976,373) Accumulated deficit (2,263,404) (13,289,143) Total Shareholders' Equity 17,230,552 6,300,779 Total Liabilities and Shareholders' Equity 22,061,666 11,610,481 Subsequent events (Note 15) - Approved and authorized for issue on March 2, 2026 by the board of directors and signed on its behalf by: Peter Shippen Director Greg Taylor Director The accompanying notes are an integral part of these condensed interim consolidated financial statements. Britannia Life Sciences Inc. Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) For the Three and Nine Mon --- ths Ended December 31, 2025 and 2024 Expressed in Canadian Dollars, except per share amounts Note 2025 2024 2025 2024 $ $ $ $ Continuing Operations Sales 65,361 168,264 346,996 558,598 Other income 311,644 - 410,959 Total Sales 377,005 168,264 757,955 558,598 Cost of sales 29,439 106,143 244,247 241,370 Gross Margin 347,566 62,121 513,708 317,229 Expenses Selling, general and administration 11 415,697 683,119 1,542,688 1,477,283 Finance 6 5,763 12,028 19,710 33,480 421,460 695,147 1,562,398 1,510,763 Loss from operations (73,894) (633,026) (1,048,690) (1,193,535) Change in fair value of contingent receivable 4(a) (1,400,060) - (1,277,618) - Share of net loss of Paragon Advanced labs Inc. ("PALS") 4(b) (14,369) (174,501) (1,919,213) (992,533) Gain on dilution in PALS 4(b) - 193,383 1,668,717 317,977 Gain on disposal of PALS 14,076,846 - 14,076,846 - Fair value gain (loss) on financial assets at FVTPL (469,314) - (469,314) - Fair value gain (loss) on financial assets at FVTPL PALS 460,005 - 460,005 - Accretion expense 8 - (88,565) (768) (88,565) Fair value adjustment on option 14 - - 66,345 - Foreign currency translation gain (loss) (67,101) 399,072 (146,420) (690,040) 12,586,007 329,389 12,458,580 (1,453,161) Income (loss) from continuing operations before income taxes 12,512,113 (303,637) 11,409,890 (2,646,696) Current income tax expense 4(b) 1,674,111 - 1,674,111 - Deferred income tax recovery - - - - Total income tax 1,674,111 - 1,674,111 - Net income (loss) from continuing operations 10,838,002 (303,637) 9,735,779 (2,646,696) Discontinued operations Net income from discontinued operations 4(a) 1,289,960 208,927 1,289,960 799,050 Net income (loss) 12,127,962 (94,710) 11,025,739 (1,847,646) Other comprehensive income (loss) Currency translation differences from continuing operations 75,508 19,343 (55,610) 247,110 Share of other comprehensive income of BMS (24,344) - (40,356) - 51,164 19,343 (95,966) 247,110 Currency translation differences from discontinued operations - (306,206) - 715,861 51,164 (286,863) (95,966) 962,971 Comprehensive income (loss) for the period 12,179,126 (381,573) 10,929,773 (884,675) Net income (loss) attributable to: Non-controlling interest - 42,143 - 221,911 Equity shareholders of the Company 12,127,962 (136,853) 11,025,739 (2,069,557) 12,127,962 (94,710) 11,025,739 (1,847,646) Other comprehensive income (loss) attributable to: Non-controlling interest - (87,344) - 198,835 Equity shareholders of the Company 51,164 (199,520) (95,966) 764,136 51,164 (286,864) (95,966) 962,971 Basic and diluted weighted average shares outstanding 162,254,339 162,254,339 162,254,339 162,254,339 Basic and diluted earnings (loss) per share continued operations 0.08 (0.00) 0.07 (0.02) Basic and diluted earnings (loss) per share discontinued operations 0.01 0.00 0.01 0.00 The accompanying notes are an integral part of these condensed interim consolidated financial statements. Three months ended December 31, Nine months ended December 31, Britannia Life Sciences Inc. Consolidated Statements of Changes in Shareholders’ Equity For the Nine Months Ended December 31, 2025 and 2024 Expressed in Canadian Dollars - 5 - The accompanying notes are an integral part of these condensed interim consolidated financial statements. Number of common shares Share capital Contributed surplus Warrant reserve Accumulated deficit Accumulated Other Comprehensive Income (loss) Equity (Deficiency) Attributable to Shareholders of the Company Non- controlling in --- terest Total $ $ $ $ $ $ $ $ Balance at March 31, 2024 162,254,339 17,107,347 3,409,434 - (17,363,899) (715,061) 2,437,821 4,232,707 6,670,528 Warrants issued - - - 49,514 - - 49,514 - 49,514 Net income (loss) for the period - - - - (2,069,557) - (2,069,557) 221,911 (1,847,646) Other comprehensive income for the period - - - - - 764,136 764,136 198,835 962,971 Balance at December 31, 2024 162,254,339 17,107,347 3,409,434 49,514 (19,433,456) 49,075 1,181,914 4,653,453 5,835,367 Balance at March 31, 2025 162,254,339 17,107,347 3,409,434 49,514 (13,289,143) (976,373) 6,300,779 - 6,300,779 Net income for the period - - - - 11,025,739 - 11,025,739 - 11,025,739 Other comprehensive loss for the period - - - - - (95,966) (95,966) - (95,966) Balance at December 31, 2025 162,254,339 17,107,347 3,409,434 49,514 (2,263,404) (1,072,339) 17,230,552 - 17,230,552 Britannia Life Sciences Inc. Condensed Interim Consolidated Statements of Cash Flows For the Nine Months Ended December 31, 2025 and 2024 Expressed in Canadian Dollars Note 2025 2024 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) from continuing operations 9,735,779 (2,646,696) Adjustments for items not involving cash: Depreciation and amortization 3 47,129 44,851 Interest on lease liability 6 19,710 20,993 Foreign currency translation gain (129,423) (594,278) Change in fair value of contingent receivable 4(a) 1,277,618 - Fair value adjustment on option 13 (66,345) - Accretion expense 8 768 - Gain on dilution in PALS 4(b) (1,668,717) (317,977) Share of net loss of PALS 4(b) 1,919,213 992,533 Elimination of associate's management fee 4(b) 39,900 56,649 Gain on disposal of PALS 4(b) (14,536,851) - Fair value gain/(loss) on financial assets at FVTPL 4(b) 469,314 - (2,891,905) (2,443,925) Changes in non-cash working capital items: Accounts receivable (325,931) 175,274 Accounts payable and accrued liabilities 1,284,464 554,788 Prepaid expenses (43,235) - Purchase commitment - 281,996 Inventory - (9,857) Directors loan - (120,000) Total changes in non cash working capital items 915,298 882,202 Cash flows used in operating activites from continuing operations (1,976,607) (1,561,724) Cash flows used in operating activites from discontinued operations 1,289,960 2,406,665 NET CASH FLOWS FROM OPERATING ACTIVITIES (686,647) 844,941 CASH FLOWS FROM INVESTING ACTIVITIES Investment in PALS 4(b) (250,040) - Invesment in debenture 5 (5,000,000) - Cash flows provided by investing activites from continuing operations (5,250,040) - Cash flows provided by investing activites from discontinued operations - (283,035) NET CASH FLOWS FROM INVESTING ACTIVITIES (5,250,040) (283,035) CASH FLOWS FROM FINANCING ACTIVITIES Lease payments 6 (72,279) (67,461) Loan repayment 8 (14,011) - Proceeds on Debenture Units - 722,000 Cash flows provided by (used in) financing activites from continuing operations (86,290) 654,539 Cash flows provided by (used in)financing activites from discontinued operations - (1,605,380) NET CASH FLOWS FROM FINANCING ACTIVITIES (86,290) (950,841) Effect of exchange rate changes on cash and cash equivalents (7,456) 56,717 NET DECREASE IN CASH FOR THE PERIOD (6,030,433) (332,218) Cash beginning of the period 7,848,756 1,322,584 CASH, END OF THE PERIOD 1,818,323 990,366 The accompanying notes are an integral part of these condensed interim consolidated financial statements. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 --- (Expressed in Canadian Dollars, except per share amounts) - 7 - 1. Nature and Continuance of Operations Britannia Life Sciences Inc. (“BLS” or the “Company”) (together with its subsidiaries, the "Group") is a company domiciled and incorporated in Canada under the laws of the Province of Ontario. The address of BLS’s registered office is 120 Adelaide Street West, Suite 2400, Toronto, Ontario M5H 1T1. BLS's common shares are listed for trading on the Canadian Securities Exchange (CSE: BLAB). 2. Basis of Preparation (a) Statement of compliance These condensed interim consolidated financial statements as at and for the three and nine months ended December 31, 2025 and 2024, have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”. Accordingly, certain information and footnote disclosure normally included in annual financial statements prepared in accounts with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”) have been omitted or condensed. The accounting policies adopted in the preparation of the condensed interim consolidated financial statements are consistent with those set out in note 2 “Basis of Preparation” and note 3 “Material Accounting Policy Information” of the Company’s annual consolidated financial statements for the year ended March 31, 2025. These condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended March 31, 2025. (b) Basis of consolidation The condensed interim consolidated financial statements comprise the financial statements of BLS, its wholly owned subsidiaries Britannia Bud Canada Holdings Inc. (“BBCH”), Britannia Bud Company Limited (“BBCL”), Jamaica-Blu Ltd., Rise Research Inc., Scout Assessment Corp., Rise Life Science (Colorado), LLC, Brand Max, Inc. (doing business as Cultivate Kind) (“Brand Max”), Life Bloom Organics, LLC (“Life Bloom”) and Cosmetic Labs Limited (“CosLab”). BBCL and CosLab operate in the United Kingdom and have a functional currency of UK pounds sterling. Life Bloom, Brand Max, and Rise Life Science (Colorado), LLC are domiciled in the United States of America and have a functional currency of US dollars. The Company’s subsidiaries are as follows: Entity Jurisdiction of Incorporation Ownership BBCH Ontario, Canada 100% BBCL United Kingdom 100% Jamaica-Blu Ltd. Ontario, Canada 100% Rise Research Inc. British Columbia, Canada 100% Scout Assessment Corp. Ontario, Canada 100% Rise Life Science (Colorado), LLC Colorado, United States 100% Brand Max California, United States 100% Life Bloom Delaware, United States 100% CosLab United Kingdom 100% All intercompany transactions and balances between and among BLS and its subsidiaries have been eliminated on consolidation. Where necessary, adjustments are made to assets, liabilities, and results of subsidiaries and associates to bring their accounting policies into line with those used by the Company. Subsidiaries are entities controlled by BLS. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. BLS controls an entity if it has power to direct the activities of the entity that significantly affects its returns (“the relevant activities”), has exposure or rights to variable returns from its involvement with the entity and has the ability to use its po --- wer to affect those returns. Changes in BLS’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of BLS’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 8 - Net income (loss) and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Company’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between BLS and its subsidiaries are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. (c) Basis of measurement These condensed interim consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair value. (d) Functional and presentation currency The condensed interim consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency and the overall presentation currency. The Group’s U.K. operations have a functional currency of UK pounds sterling. The Group’s US operations have a functional currency of USD. All financial information presented has been rounded to the nearest dollar except where indicated otherwise. (e) Use of significant estimates and judgements The preparation of financial statements in accordance with IAS 34 requires the use of certain significant estimates and assumptions. It also requires management to exercise judgment when applying the Company’s accounting policies. The critical accounting estimates and judgements have been set out in note 2 of the Company’s annual consolidated financial statements for the year ended March 31, 2025. (f) New standards and interpretations not yet adopted IFRS 18, Presentation and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18 that will replace IAS 1, Presentation of Financial Statements. The new standard aims to improve the quality of financial reporting by: (i) requiring defined subtotals in the statement of profit or loss; (ii) requiring disclosure about management defined performance measures; and (iii) adding new principles for aggregation and disaggregation of information. The standard is effective for the annual reporting periods beginning on or after January 1, 2027, with early application permitted. The Company is in the process of assessing the impact of this new standard on its consolidated financial statements. IFRS 9, Financial Instruments (“IFRS 9”) and IFRS 7, Financial Instruments: Disclosures (“IFRS 7”) In May 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 in response to practica --- l implementation issues and to introduce new requirements applicable to both financial institutions and corporate entities. These amendments aim to enhance the clarity of financial reporting for various types of financial instruments and their related disclosures by (i) clarifying the date of recognition and derecognition for certain financial assets and liabilities, including a new exception for financial liabilities settled through an electronic cash transfer system; (ii) providing hep to determine whether a financial asset meets the Solely Payments of Principal and Interest criterion; (iii) introducing new disclosures for instruments with contractual terms that may alter cash flows, such as financial instruments linked to the achievement of environmental, social, and governance targets; and (iv) updating the disclosure requirements for equity instruments designated at fair value through other comprehensive income. The amendments will be effective for annual periods beginning on or after January 1, 2026. The Company is in the process of assessing the impact of the standard on the consolidated financial statements. All other IFRSs and amendments issued but not yet effective have been assessed by the Company and are not expected to have a material impact on the Company’s consolidated financial statements. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 9 - 3. Property and Equipment Right-of- Use Asset Total $ $ Cost Balance, March 31, 2025 347,605 347,605 Effect of foreign exchange (29,738) (29,738) Balance, December 31, 2025 317,867 317,867 Accumulated Depreciation Balance, March 31, 2025 204,646 204,646 Depreciation 47,129 47,129 Effect of foreign exchange (28,904) (28,904) Balance, December 31, 2025 222,871 222,871 Net book value, March 31, 2025 142,959 142,959 Net book value, December 31, 2025 94,996 94,996 4. Business Developments a) Advanced Development & Safety Laboratories Ltd. (“ADSL”) Mark Richard Bowes-Cavanagh, Claire Suzanne Bowes-Cavanagh, Jonathan Bird Sumner and Robert Sumner (the "ADSL Sellers") and BBCH entered into a share purchase agreement dated March 10, 2020, wherein BBCH acquired 60% of the issued share capital of ADSL (the “Initial ADSL Acquisition”). Completion payments in relation to the Initial ADSL Acquisition were made on February 9, 2021 (the “Initial ADSL Completion Date”). The Initial ADSL Acquisition consideration included a cash payment of $5,278,445 (GBP 3,008,819), a loan payable to the ADSL Sellers of $7,819,478 (GBP 4,456,813), and a loan payable to ADSL of $6,551,624 (GBP 3,734,183). Pursuant to the terms of the ADSL Acquisition, on the first three anniversaries of the Initial ADSL Completion Date, BBCH had the right to acquire from the Sellers up to an additional 40% of the share capital of ADSL for additional consideration. In circumstances where on expiry of the third anniversary of the Initial ADSL Completion Date BBCH has not acquired all the ADSL shares, the ADSL Sellers have the right to require BBCH to purchase all of the ADSL shares it does not yet own (the “ADSL Put Liability”). The total consideration payable for the additional shares (the “ADSL Put Shares”) upon exercise of the ADSL Put Liability and the closing of the Company’s acquisition of the ADSL Put Shares would be equal to the total equity value of the ADSL Put Shares, which would be based upon th --- e applicable percentage acquired by BBCH of the total enterprise value for ADSL. At the close of the Initial ADSL Acquisition, the value of the ADSL Put Liability was determined to be $2,464,315 (GBP 1,404,568), representing the difference between the market price and the contract value of the ADSL Put Liability, discounted at a rate of 0.23% per annum and assuming the transaction would take place on February 9, 2024. As at March 31, 2022, the fair value of the ADSL Put Liability was remeasured to $4,495,033 (GBP 2,738,035). On April 7, 2022, BBCH acquired an additional 10% of the outstanding issued share capital of ADSL (the “Second ADSL Acquisition”). A cash payment of GBP 1,813,358 was paid as consideration for the Second ADSL Acquisition (CAD: $2,982,066). The ADSL Put Liability was reduced accordingly and an adjustment was made to non-controlling interest to reflect the change in ownership after the Second ADSL Acquisition and on March 31, 2023. On November 22, 2023, BBCH acquired an additional 2% of the outstanding issued share capital of ADSL (the “Third ADSL Acquisition”). A cash payment of GBP 545,023 was paid as consideration for the Third ADSL Acquisition (CAD: $938,735). Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 10 - The ADSL Put Liability was reduced accordingly and an adjustment was made to non-controlling interest to reflect the change in ownership post transaction. $ Cash payment to minority shareholders 938,735 Reduction in ADSL Put Liability (15,745) Reduction in non-controlling interest (269,245) Equity adjustment 653,745 On February 9, 2024, as BBCH had not yet acquired the remaining ADSL shares, the put option right became enforceable. On March 18, 2024, the ADSL Sellers informed BBCH of their intention to exercise their put right. BBCH has consequently reduced the ADSL Put Liability on the statement of financial position to nil, generating a gain on fair value of the ADSL Put Liability for the year ended March 31, 2024, of $1,403,966. The Group determined that a purchase commitment in the amount of £6,038,017 (CAD: $10,333,463) existed at March 31, 2024. Further, the Group recognized a liability in relation to the obligation to acquire the remaining ADSL shares. The Group determined that the contract price exceeded the fair value at March 31, 2024 of the shares to be purchased. The purchase commitment provision was presented on the consolidated statement of financial position at March 31, 2024 in the amount of $5,274,407 (GBP: 3,081,925). ADSL Sale Transaction On January 9, 2025 BBCH acquired the remaining 28% of ADSL’s share capital (the “Final ADSL Acquisition”). A cash payment of $14,258,160 (GBP 8,050,000) was paid as consideration. The transaction was accounted for as an equity transaction as control over ADSL had already been established. No gain or loss was recognized in comprehensive income (loss) as a result of the transaction. The difference between the consideration transferred and the carrying amount of the non- controlling interest derecognized was recorded directly in equity. Immediately prior to the Final ADSL Acquisition, the Group remeasured the previously recognized purchase commitment provision associated with the obligation to acquire the remaining 28% interest. The remeasured amount of $5,458,706 was used to derecognize the liability, and the difference betw --- een this amount and the actual consideration paid was recorded as a reduction to equity. Immediately following the Final ADSL acquisition, ADSL paid a dividend in the amount of $15,216,278 (GBP: 8,590,914) to BBCH which was used to settle in part the existing intercompany balances between the Company and ADSL. $ Cash consideration paid 14,258,160 Less: Carrying amount of purchase commitment provision (5,458,706) Non-controlling interest derecognized (4,548,030) Total impact on equity 4,251,424 Immediately following the Final ADSL Acquisition, BBCH entered into a share purchase agreement with Cos Bidco Limited (the “Buyer”) to sell 100% of its interest in ADSL for a base consideration of $31,018,756 (GBP 18,700,000). Part of the proceeds of disposition were used to repay the GLL loan payable. The sale represented a separate major operating subsidiary in the United Kingdom and was a strategic decision by the Group to focus on capital investments designed to generate immediate and recurring cash flow for the benefit of its shareholders in a manner consistent with the Company's commitment to support diversified and innovative opportunities in high-potential areas. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 11 - As part of the sale agreement, BBCH is also entitled to an earnout based on the performance of ADSL in the period from the sale to March 31, 2025, and from January 1 to December 31, 2025. Management has assessed the likelihood of receiving any earnout payment at March 31, 2025, to be remote and has therefore not accrued any March 2025 consideration. However, a contingent receivable had been recognized at fair value based on the estimated probability-weighted expected EBITDA for the period from January 1 to December 31, 2025, at March 31, 2025. As at December 31, 2025, the Group reassessed the fair value of this receivable to be nil. The consideration accrual also includes a contingent receivable related to certain withholdings of proceeds by the Buyer related to a previous tax liability at ADSL. This receivable has been present-valued at the date of sale and at March 31, 2025 to reflect its fair value, with differences recorded through net loss. As a result of the sale, the Group derecognized net assets as follows: $ Total tangible assets derecognized 2,630,913 Intangible assets derecognized 431,753 Goodwill derecognized 18,403,363 Total liabilities derecognized (6,274,485) Net assets derecognized 15,191,544 Reclassification of AOCI to equity (933,385) The gain on the sale of ADSL for the year ended March 31, 2025 is as follows: $ Consideration received 26,207,397 Contingent consideration receivable 1,612,252 Transaction costs (1,205,975) Net assets derecognized (15,191,544) Gain on sale 11,422,130 The contingent receivable has been accounted for at its estimated present value at the date of the ADSL sale and at December 31, 2025. The contingent receivable can be summarized as follows: $ Contingent consideration earnout 1,220,394 Contingent consideration for previous ADSL taxes 391,859 Contingent receivable at sale date 1,612,252 Gain on adjustment to fair value 124,526 Contingent receivable at March 31, 2025 1,736,778 Loss on adjustment to fair value (1,277,618) Contingent receivable at December 31, 2025 459,160 Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Sta --- tements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 12 - The income from discontinued operations for the three and nine months ended December 31, 2025 and 2024 is as follows: The cash flows from discontinued operations for the three and nine month periods ended December 31, 2025 and 2024 are as follows: During the period, the Group recognized a $1,289,960 adjustment relating to the finalization of the completion accounts for the ADSL disposal which occurred during the year ended March 31, 2025. The adjustment reflects the final agreed purchase price under the terms of the sale and purchase agreement and has been recognized within discontinued operations in the current period. No further material adjustments are expected in respect of the disposal. 2025 2024 2025 2024 $ $ $ $ Product sales and other income - 1,569,788 - 4,901,138 Cost of sales - 619,258 - 1,696,441 Gross Margin 950,530 3,204,698 Selling, general and administration - 500,568 - 1,483,371 Finance - 191,918 - 640,046 Income from discontinued operations - 258,043 - 1,081,280 Accretion expense - (11,896) - (86,379) Gain on sale of subsidiary 1,289,960 - 1,289,960 - Income before tax 1,289,960 246,147 1,289,960 994,901 Total income tax - 61,012 - 195,851 Net income from discontinued operations 1,289,960 185,135 1,289,960 799,050 Currency translation differences from discontinued operations - (306,206) - 715,861 Net income (loss) attributable to discontinued operations: Non-controlling interest - 42,143 - 221,911 Equity shareholders of the Company - 134,376 - 596,638 Other comprehensive income attributable to discontinued operations: Non-controlling interest - (87,344) - 198,835 Equity shareholders of the Company - (220,468) - 515,420 Three months ended December 31, Nine months ended December 31, 2025 2024 2025 2024 $ $ $ $ Cash provided by operating activities - 1,321,325 - 2,406,665 Cash used in investing activities 1,289,960 (103,130) 1,289,960 (283,035) Cash used in financing activities - (551,664) - (1,605,380) 1,289,960 666,531 1,289,960 518,250 Nine months ended December 31, Three months ended December 31, Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 13 - b) Britannia Mining Solutions Inc. (“BMS” or “PALS”) During the year ended March 31, 2025, BMS issued 18,500 BMS common shares at $10.00 per share, 104,932 BMS common shares at $12,75 per share and 12,905 BMS common shares as compensation. On April 30, 2025, BMS issued 542,921 common shares in a private placement at a price of $17.50 per share and 34,386 common shares as compensation to brokers (the “April Financing”). BLS acquired an additional 14,288 common shares in the April Financing. On December 9, 2025, BMS completed a reverse takeover transaction (the “PALS RTO”) of 1317220 B.C. Ltd.. BMS changed its name to Paragon Advanced Labs Inc., and its shares began trading on the TSX Venture Exchange on December 11, 2025. Prior to the PALS RTO, the Company owned 24% of the outstanding share capital of BMS on a fully diluted basis. This investment in BMS combined with the Chief Executive Officer of the Company being both the Chief Executive Officer and sole director of BMS resulted in the Group being in a position to exercise significant influence on BMS. Accordingly, prior to the PALS RTO, the Group equity accounted for its investment in BMS. In --- addition, prior to the PALS RTO, the Group owned the 2024 Debentures and the April 2025 Debentures (as defined below) that it expected to issue to the holders of the Debentures Payable (as defined below). Accordingly, the 2024 Debentures and the April 2025 Debentures were classified separately below and carried at FVTPL as were the Debentures Payable. Pursuant to the terms of the 2024 Debentures and the April 2025 Debentures, on completion of the PALS RTO, all debentures automatically converted into shares of PALS and the Group effectively issued PALS shares to the holders of the Debentures payable. The continuity of the equity-accounted investment in BMS up to the completion date of the PALS RTO is as follows: Debentures $ Equity $ Total $ Balance as at March 31, 2024 - 731,204 731,204 Gain on dilution on BMS equity issuances - 231,531 231,531 Investment in the 2024 Debentures Investment in the 2025 Debentures 958,575 - 1,250,000 958,575 1,250,000 Elimination of associate’s management fee - (85,163) (85,163) Share of other comprehensive loss of BMS - (40,462) (40,462) Share of net loss of BMS - (2,087,110) (2,087,110) Change in fair value 576,796 - 576,796 Accrued interest 6,776 - 6,776 Balance as at March 31, 2025 1,542,147 - 1,542,147 Gain on dilution on BMS equity issuances - 1,668,717 1,668,717 Investment in the April Financing 250,040 250,040 Elimination of associate’s management fee - (39,900) (39,900) Share of other comprehensive loss of BMS - 40,356 40,356 Share of net loss of BMS - (1,919,213) (1,919,213) Investment in the April 2025 Debentures 500,010 500,010 Change in fair value 95,327 - 95,327 Accrued interest 17,727 - 17,727 Conversion on BMS liquidity event (2,155,211) - (2,155,211) Balance as at December 31, 2025 - - - As of March 31, 2025, the Group’s equity investment in BMS was fully written down to zero, as the share of cumulative losses exceeded the carrying amount of the investment. As a result of the gain on dilution post the April Financing, the Group has recognized further in period losses and has written the equity investment down to zero as it has no obligation to provide further financial support to BMS. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 14 - In relation to the PALS RTO, on December 9, 2025, the Group disposed of a portion of its interest in BMS, resulting in the loss of significant influence. Accordingly, the Group discontinued the application of the equity method in accordance with IAS 28. The retained investment has been reclassified as a financial asset at fair value through profit or loss in accordance with IFRS 9. The retained interest in PALS is measured at fair value based on the quoted market price of PALS’ shares on that date. Coincident with the PALS RTO, the Group completed a share exchange (the "Agreement") with McEwen Inc. ("McEwen") (NYSE and TSX V: MUX). Pursuant to the terms of the Agreement, McEwen acquired 648,002 common shares of PALS from the Group at a deemed price of $17.50 per share, payable in common shares of McEwen (the "McEwen Transaction"). The Group received 525,488 common shares of McEwan. No cash consideration was received in the McEwen Transaction. The financial effects of the McEwen Transaction were as follows: Total $ Fair Value of McEwan shares received 14,076,846 Carrying value of PALS - Gain on disposal 14,076,846 The gain has --- been recognized within “Other Income (Expense)” in the condensed interim consolidated statement of profit or loss. The gain is non-cash in nature and arose primarily as a result of the fair value of the McEwan shares received in exchange for the PALS common shares. Following the transaction, the retained interest in PALS and the McEwan shares received have been classified as financial assets at fair value through profit or loss (FVTPL) in accordance with IFRS 9. At December 31 2025, the fair values were as follows: Fair Value December 9, 2025 Fair value gain/(loss) on financial assets at FVTPL Fair value December 31, 2025 $ $ $ McEwan shares received 14,076,846 (745,317) 13,331,529 Retained interest in PALS 460,005 276,003 736,008 Balance as at December 31, 2025 14,536,851 469,314 14,067,537 The net fair value loss of $469,314 arising subsequent to initial recognition has been recognized in profit or loss as fair value gain/(loss) on financial assets at FVTPL within other income (expense). For income tax purposes, the adjusted cost base of the disposed investment differed from its carrying amount. The transaction resulted in the recognition of current income tax expense of $1,674,111 in respect of the taxable capital gain. Any resulting temporary differences were accounted for in accordance with IAS 12 Income Taxes. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 15 - 2024 Debentures On November 22, 2024 the Group acquired 75,200 units of a convertible debenture issued by BMS (the “2024 Debentures”), at a total purchase price of $958,575. The debentures bore interest at a rate of 2% per annum, payable annually, and were to mature two years from the closing date, unless earlier converted in accordance with their terms. Each debenture was convertible, at the holder’s option, into 100 common shares of BMS, representing a conversion price of $12.75 per share at any time prior to maturity. The 2024 Debentures could also be automatically converted by BMS upon the occurrence of certain triggering events, including but not limited to a go-public transaction. The 2024 Debentures were classified as financial assets at FVTPL. The carrying value of the conversion feature was determined using a Black-Scholes valuation model. The key assumptions included: Share price: $17.50, Expected volatility: 100%, Risk-free rate: 2.63%, Expected life: two years, Dividend yield: 0%. The conversion feature was remeasured at fair value at each reporting period, with changes in fair value recognized in the statement of income (loss) and comprehensive income (loss). In connection with the PALS RTO, the 2024 Debentures converted to PALS shares on December 9, 2025. 2025 Debentures On January 25, 2025 the Group acquired 1,000 unsecured convertible debentures (the “2025 Debentures”) of BMS at a price of $1,250 per debenture, due on January 26, 2027 (the “Maturity Date”). Each 2025 Debenture was comprised of $1,250 principal amount of debentures convertible into common shares of BMS. The 2025 Debentures bore interest at a rate of 2% per annum calculated and paid annually. The 2025 Debentures could also be automatically converted by BMS upon the occurrence of a liquidity event (such as a reverse takeover and listing on a stock exchange). At the sole option of BMS, following the occurrence of a liquidity event, any accrued and unpaid interest --- was to be paid in cash or in common shares. Such interest was calculated and paid on: (i) the one-year anniversary of the closing date; (ii) the maturity date; and (iii) if applicable, within 30 days of the occurrence of a liquidity event. The intention of BLS was that the 2025 Debentures would be converted to shares in BMS prior to their maturity date. They were therefore accounted for initially at cost as part of the Group’s equity investment in BMS. In connection with the PALS RTO, the 2025 Debentures converted to PALS shares on December 9, 2025. April 2025 Debentures On April 30, 2025 the Group acquired 28,572 units of a convertible debenture issued by BMS (the “April 2025 Debentures”), at a total purchase price of $500,010. The debentures bore interest at a rate of 2% per annum, payable annually, and were to mature two years from the closing date, unless earlier converted in accordance with their terms. Each debenture was convertible, at the holder’s option, into one common shares of BMS, representing a conversion price of $17.50 per share at any time prior to maturity. The April 2025 Debentures could also be automatically converted by BMS upon the occurrence of certain triggering events, including but not limited to a go-public transaction. The April 2025 Debentures were classified as financial assets at FVTPL. The carrying value of the conversion feature was determined using a Black-Scholes valuation model. The key assumptions included: Share price: $17.50, Expected volatility: 100%, Risk-free rate: 2.63%, Expected life: two years, Dividend yield: 0%. The conversion feature was remeasured at fair value at each reporting period, with changes in fair value recognized in the statement of income (loss) and comprehensive income (loss). In connection with the PALS RTO, the April 2025 Debentures converted to PALS shares on December 9, 2025. November Debentures Payable On November 22, 2024, the Company issued 75,200 unsecured convertible debentures (the "November Debentures Payable") for total gross proceeds of $958,575. The November Debentures Payable bore interest at a rate of 2% per annum, payable annually, and mature two years on November 22, 2026, unless earlier converted in accordance with their terms. Each November Debenture Payable was convertible, at the holder’s option, into 100 common shares of BMS, representing a conversion price of $12.75 per share at any time prior to maturity. The November Debentures Payable could also be automatically converted by BMS upon the occurrence of certain triggering events, including but not limited to a go-public transaction by BMS. The November Debentures Payable were classified as financial liabilities at FVTPL. In accordance with IFRS 9, this classification reduced the measurement inconsistency resulting from the purchase of the 2024 Debentures. The fair value of the conversion feature was determined using a Black-Scholes valuation model. The key assumptions included: Share price: $17.50, Expected volatility: 100%, Risk-free rate: 2.63%, Expected life: two years, Dividend yield: 0%. The conversion feature was remeasured at fair value at each reporting period, with changes in fair value recognized in the statement of income (loss) and comprehensive income (loss). In connection with the PALS RTO, the November Debentures Payable converted to PALS shares on December 9, 2025. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 ( --- Expressed in Canadian Dollars, except per share amounts) - 16 - $ At issuance Proceeds 958,575 Fair value of conversion feature 751,529 Adjustment to fair value of November Debentures Payable (174,733) Interest expense 6,776 Balance March 31, 2025 1,542,147 Adjustment to fair value of November Debentures Payable (53,816) Interest expense 13,289 Conversion on liquidity event (1,501,619) Balance December 31, 2025 - April 2025 Debentures Payable On April 30, 2025, the Company issued 28,572 unsecured convertible debentures (the "April 2025 Debentures Payable") for total gross proceeds of $500,010. The April 2025 Debentures Payable bear interest at a rate of 2% per annum, payable annually, and mature two years after issuance date, unless earlier converted in accordance with their terms. Each April 2025 Debenture Payable is convertible, at the holder’s option, into one common share of BMS, representing a conversion price of $17.50 per share at any time prior to maturity. The April 2025 Debentures Payable may also be automatically converted by BMS upon the occurrence of certain triggering events, including but not limited to a go-public transaction by BMS. The April 2025 Debentures Payable are classified as financial liabilities at FVTPL. In accordance with IFRS 9, this classification reduces the measurement inconsistency resulting from the purchase of the April 2025 Debentures. The fair value of the conversion feature was determined using a Black-Scholes valuation model. The key assumptions included: Share price: $17.50, Expected volatility: 100%, Risk-free rate: 2.63%, Expected life: two years, Dividend yield: 0%. The conversion feature is remeasured at fair value at each reporting period, with changes in fair value recognized in the statement of income (loss) and comprehensive income (loss). In connection with the RTO, the April 2025 Debentures Payable converted to BMS shares on December 9, 2025. $ At issuance Proceeds 500,010 Fair value of conversion feature 256,735 Adjustment to fair value of April 2025 Debentures Payable (107,591) Interest expense 4,438 Conversion on liquidity event (653,952) Balance December 31, 2025 - 5. Investment in Debenture On July 2, 2025 the Company invested $5,000,000 of its treasury capital, generated from the sale of ADSL, into an arm's length portfolio of asset-backed loans (the "Investment"). The Investment consists of a subordinated secured debenture bearing interest at 25% per annum, payable monthly from September 1, 2025, and maturing July 1, 2027 at which time the principal is due in full. The investment meets the criteria for classification at amortised cost under IFRS 9, as it is held within a hold-to-collect business model and the contractual terms give rise to solely payments of principal and interest (SPPI). No modifications to the terms of the debenture occurred during the period from July 2, 2025 to December 31, 2025. Accordingly, the investment is classified and measured at amortized cost in accordance with IFRS 9 Financial Instruments. As the investment was issued at par and the contractual interest rate equals the effective interest rate, the gross carrying amount remains $5,000,000 as at December 31, 2025. Interest income recognized for the three and nine month periods ended December 31, 2025 totaled $311,644 and $410,959, respectively. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except --- per share amounts) - 17 - 6. Lease Liability $ Balance as at March 31, 2025 186,821 Lease payments (72,279) Lease interest 19,710 Effect of foreign exchange (1,140) Balance as at December 31, 2025 133,112 Current 83,152 Non-current 49,960 Balance as at December 31, 2025 133,112 7. Related Party Transactions and Balances Key management personnel compensation Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company. The directors, Chief Executive Officer, President, and Chief Financial Officer are key management personnel. Three months ended December 31, Nine months ended December 31, 2025 2024 2025 2024 $ $ $ $ Salaries, fees and short-term benefits 143,801 208,467 759,356 700,492 143,801 208,467 759,356 700,492 For the nine months ended December 31, 2025, accounts payable and accrued liabilities included accrued executive and director salaries, fees and short-term benefits of $1,232,917 (December 31, 2024: $1,472,352). Director’s loan During the year ended March 31, 2024, a Company director extended a loan of $29,110 (GBP 15,796) to CosLab to cover expenses related to its working capital and growth needs. The loan is without interest, unsecured and is repayable on demand and remains outstanding at December 31, 2025. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 18 - 8. Other Debt The continuity of other debt is as follows: Note Payable (a) Federal Capital (b) Total $ $ $ Balance, March 31, 2025 86,337 13,271 99,608 Accretion expense - 768 768 Repayment - (14,011) (14,011) Effect of foreign exchange - (28) (28) Balance, December 31, 2025 86,337 - 86,337 Current 86,337 - 86,337 Non-current - - - Balance, December 31, 2025 86,337 - 86,337 (a) Note payable On July 31, 2016, a private lender subscribed to a secured convertible note issued by RISE in the amount of $50,000, bearing interest at 8% per annum and maturing on July 31, 2017. The note was convertible at $0.20 per common share until July 31, 2017. Total interest payable at March 31, 2025 is $36,337 (March 31, 2024: $36,337). As of December 31, 2025, the note and accrued interest are still outstanding. (b) Federal Capital loan On October 19, 2023, CosLab obtained a $29,344 (GBP 20,000) loan from Federal Capital. The loan bears interest at 29.6% and is payable in equal instalments over a twenty-four-month period. The Company made $14,011 (GBP: 7,560) in payments related to full repayment of the Federal Capital loan in the nine months ended December 31, 2025. 9. Share Capital Authorized The Company has an unlimited number of authorized voting common shares (the “Common Shares”). Issued The outstanding share capital is as follows: Shares Amount Share issuance costs Total # $ $ $ As at March 31, 2025 and December 31, 2025 162,254,339 17,121,061 (13,714) 17,107,347 Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 19 - Warrants The continuity of the outstanding equity warrants is as follows: Number of Warrants Weighted average exercise price $ As at March 31, 2025 and December 31, 2025 15,532,712 0.06 Exercisable as at March 31, 2025 and December 31, 2025 15,532,712 0.06 Options The Company has a stock option plan to be used to grant sto --- ck options to directors, management, employees, management company employees and consultants as a form of compensation. The number of common shares reserved for issuance of stock options is limited to a maximum of 10% of the issued and outstanding shares of the Company at any one time. There are no options outstanding at December 31, 2025. The Company recognized nil in share-based payments related to the issuance of stock options for the three and nine months ended December 31, 2025 (December 31, 2024 - nil). 10. Capital Disclosures The Company’s objectives when managing capital are to ensure its ability to continue as a going concern in order to pursue investments and opportunities which contribute to the success of the Company while providing shareholder returns. The company attempts to maximize returns to shareholders by also minimizing shareholder dilution and, when possible utilizing non-dilutive funding arrangements. The Company includes equity comprised of share capital, contributed surplus, warrant reserve, options reserve and accumulated deficit in its definition of capital. The Company has financed it operations and capital requirements primarily through the issuance of shares and secured and convertible notes since inception. The Company manages its capital structure and adjusts it in light of economic conditions and risk characteristics of its underlying assets. The Company may issue new shares or raise debt. The Company is not subject to any externally imposed capital requirements. 11. Selling, General and Administrative Expense Included in selling, general, and administrative expense for the three and nine months ended December 31, 2025 and 2024 are the following: For the three months ending December 31, For the nine months ending December 31, 2025 2024 2025 2024 $ $ $ $ Pay, consulting and benefits 105,686 506,035 978,960 904,596 Office and general 136,095 113,875 265,922 445,661 Professional fees expense 158,196 48,021 250,677 82,175 Depreciation and amortization 15,720 15,189 47,129 44,851 Travel and other - - - - 415,697 683,119 1,542,688 1,477,283 Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 20 - 12. Contingencies From time to time the Group may become subject to legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flow. 13. Financial Instruments and Risk Management The Company has classified its financial instruments as follows: December 31, 2025 March 31, 2025 $ $ FVTPL assets, measured at fair value: Cash 1,818,323 7,848,756 Contingent consideration 459,160 1,736,779 Marketable securities 14,067,537 - Option asset - 87,355 FVTPL liabilities, measured at fair value: Convertible debentures - 1,542,147 Financial assets, measured at amortized cost: Accounts receivable 554,042 228,111 Investment in debenture 5,000,000 - Financial liabilities, measured at amortized cost: Accounts payable and accrued liabilities 4,582,555 3,451,791 Director’s loan 29,110 29,335 Lease liability 133,112 186,821 Other debt 86,337 99,608 The carrying value of the Company’s financial instruments approximate their fair value. Fair va --- lues of financial assets and financial liabilities Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. Fair value estimates are made at the statement of financial position date, based on relevant market information and other information about financial instruments. The three levels of the fair value hierarchy are: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and Level 3 – Inputs that are not based on observable market data. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 21 - Level 1 $ Level 2 $ Level 3 $ Total $ Financial assets Cash 1,818,323 - - 1,818,323 Contingent consideration 459,160 - - 459,160 Investment in debenture 5,000,000 - - 5,000,000 Marketable securities 14,067,537 14,067,537 December 31, 2025 21,345,020 - - 21,345,020 Level 1 $ Level 2 $ Level 3 $ Total $ Financial assets Cash 7,848,756 - - 7,848,756 Contingent consideration 1,736,779 - - 1,736,779 Option - 87,355 - 87,355 March 31, 2025 9,585,535 87,355 - 9,672,890 As at March 31 2025, the Company held foreign currency options to purchase Canadian Dollars (CAD) using British Pounds Sterling (GBP). These instruments are held for trading purposes and are classified as financial assets at fair value through profit or loss (FVTPL) in accordance with IFRS 9 – Financial Instruments. The Company uses foreign currency options to take trading positions based on anticipated movements in exchange rates between GBP and CAD. These positions are not designated in hedge relationships and are entered into to generate trading gains. The Corporation's foreign currency option contracts are not traded in active markets. All of the Company’s options matured on April 1, 2025. A fair value adjustment of $66,345 was recognized in the period ended December 31, 2025. There were no transfers between level levels 1 and 2 for recurring fair value measurements for the three and nine months ended December 31, 2025. Further there was no transfer out of level measurements. The Company’s activities expose it to a variety of financial risks including foreign currency risk, interest rate risk, credit risk, and liquidity risk. These financial instrument risks are actively managed by the Company’s management under the policies approved by board of directors. The principal financial risks are managed by the Company’s finance department who work hand in hand with the Board and other key management personnel. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is mainly exposed to credit risk from credit sales and manages this risk by endeavoring only to deal with customers which are demonstrably creditworthy and through the continuous monitoring of financial exposure by customers. Credit risk arises from cash and deposits with banks as well as credit exposure to outstanding receivables, the carrying amounts represent the Company’s maximum exposure to credit risk. The Company does not have any significant credit risk exposure to any single counterparty or any gro --- up of counterparties having similar characteristics. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 22 - Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company is exposed to liquidity risk with respect to its contractual obligations and financial liabilities. The Company manages liquidity risk by forecasting its cash needs on a regular basis and seeking additional financing from operations and other sources including debt and equity markets as required. The following table summarizes the maturities of the Company’s non-derivative financial liabilities and contingent financial liabilities as at December 31, 2025 and March 31, 2025 based on undiscounted contractual cash flows: Payment due by period < 1 year 2 - 3 years 4 - 5 years Total Accounts payable and accrued liabilities $ 4,582,555 $ - $ - $ 2,908,444 Lease liability 97,668 52,980 - 150,648 Director’s loan 29,110 - - 29,110 Other debt 86,337 - - 86,337 December 31, 2025 $ 4,795,690 $ 52,980 $ - $ 4,848,670 Payment due by period < 1 year 2 - 3 years 4 - 5 years Total Accounts payable and accrued liabilities $ 3,451,791 $ - $ - $ 3,451,791 Lease liability 97,033 75,212 - 172,245 Convertible debenture - 996,918 - 996,918 Director’s loan 29,335 - - 29,335 Other debt 99,608 - - 99,608 March 31, 2025 $ 3,677,767 $ 1,072,130 $ - $ 4,749,897 Currency risk The Group is exposed to currency risk to the extent that monetary operational expenses are denominated in US dollar and UK Pounds sterling while the functional currency of Canadian dollar is used for reporting. The Group enters into option contracts to mitigate some of the risk of fluctuations in the exchange rate of its holding of UK pounds sterling. Changes in the fair value of the contracts and the corresponding gains or losses are recorded quarterly and are included in the fair value adjustment on option contracts in the consolidated statement of comprehensive income and loss. The Group’s strategy is to reduce the risk of fluctuations associated with foreign exchange rate changes. The option contracts are held to maturity and are either exercised at for a net profit or loss or expire at no obligation to the Group. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group is not exposed to significant interest rate risk. Britannia Life Sciences Inc. Notes to the Condensed Interim Consolidated Financial Statements December 31, 2025 and 2024 (Expressed in Canadian Dollars, except per share amounts) - 23 - 14. Comparative Amounts The comparative amounts for the condensed interim consolidated statements of loss and comprehensive loss and the condensed interim consolidated statements of cash flows have been restated to show the discontinued operation separately from continuing operations. 15. Subsequent Events The financial statements were authorized for issue on March 2, 2026 by the Board of Directors. The Company has evaluated events subsequent to the reporting date and has determined that there are no material events requiring adjustment or disclosure.