SEDAR Interim Financial Statements

1 . CONDENSED INTERIM FINANCIAL STATEMENTS (Unaudited – presented in Canadian Dollars) FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 2 NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the condensed interim financial statements, they must be accompanied by a notice indicating that an auditor has not reviewed the condensed interim financial statements. The accompanying unaudited condensed interim financial statements of the Company have been prepared by and are the responsibility of the Company’s management. The Company’s independent auditor has not performed a review of these condensed interim financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of interim condensed interim financial statements by an entity’s auditor. 3 PROSPECT RIDGE RESOURCES CORP. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited – presented in Canadian Dollars) AS AT November 30, 2025 August 31, 2025 ASSETS Current Cash $ 689,739 $ 672,522 Short-term investments 1,001,182 1,643,456 Receivables (Note 4) 124,196 24,219 Prepaid expenses 719,951 94,937 2,535,068 2,435,134 Reclamation deposits (Note 8) 59,500 59,500 Equipment and right-of-use assets (Note 5) 432,774 444,142 Exploration and evaluation assets (Note 7) 4,524,750 4,489,750 Total Assets $ 7,552,092 $ 7,428,526 LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and accrued liabilities (Note 10) $ 309,722 $ 336,225 Current portion of lease liabilities (Note 6) 49,110 47,954 358,832 384,179 Lease liabilities – non-current (Note 6) 86,820 99,539 Total Liabilities 445,652 483,718 Shareholders' Equity Share capital (Note 9) 18,465,474 16,956,260 Commitment to issue finder’s shares (Note 7) 131,429 131,429 Contributed surplus (Note 9) 2,398,252 2,339,210 Deficit (13,888,715) (12,482,091) Total Shareholders’ Equity 7,106,440 6,944,808 Total Liabilities and Shareholders’ Equity $ 7,552,092 $ 7,428,526 Nature and continuance of operations (Note 1) Subsequent events (Note 13) Approved and authorized by the Board of Directors on January 29 2026: “Michael Iverson” Director “Len Brownlie” Director The accompanying notes are an integral part of these condensed interim financial statements. 4 PROSPECT RIDGE RESOURCES CORP. CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Unaudited – presented in Canadian Dollars) FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 2024 EXPENSES Depreciation (Note 5) 29,192 35,527 Directors’ fees (Note 10) 18,000 12,000 Exploration and evaluation expenditures (Notes 7, 10) 1,133,102 574,021 Finance expense - 881 Insurance 4,143 10,279 Investor relations 28,303 115,652 Lease accretion (Note 6) 3,437 4,763 Management and consulting fees (Note 10) 85,500 85,000 Office and miscellaneous 5,464 5,770 Professional fees (Note 10) 40,183 32,386 Share-based payments (Notes 9, 10) 49,959 14,137 Transfer agent and filing fees 14,149 9,391 Travel expense 2,919 15,157 Recovery of tax credits (Note 7) - (5,290) Total operating expenses (1,414,351) (909,674) Other income Interest income 7,727 - Unrealized gain on short-term investments - 31,902 7,727 31,902 Loss and comprehensive loss for the period $ (1,406,624) $ (877,772) Basic and diluted loss per common share $ (0.02) $ (0.01) Weighted average number of common shares outstanding – basic and diluted 88,023,731 83,244,1 --- 64 The accompanying notes are an integral part of these condensed interim financial statements. 5 PROSPECT RIDGE RESOURCES CORP. CONDENSED INTERIM STATEMENTS OF CASH FLOWS (Unaudited – presented in Canadian Dollars) FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Loss for the period $ (1,406,624) $ (877,772) Items not affecting cash: Depreciation 29,192 35,527 Finance expense - 881 Unrealized gain on short-term investments - (31,902) Lease accretion 3,437 4,763 Share-based payments 49,959 14,137 Changes in non-cash working capital items: Receivables (99,977) 23,609 Refundable tax credits - 387,234 Prepaid expenses (625,014) 106,314 Accounts payable and accrued liabilities (26,503) (671,790) Net cash used in operating activities (2,075,530) (1,008,999) CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of exploration and evaluation assets (10,000) - Acquisition of equipment (17,824) - Proceeds on sale of short-term investments 642,274 1,621,998 Net cash used in investing activities 614,450 1,621,998 CASH FLOWS FROM FINANCING ACTIVITIES Lease payments (15,000) (62,693) Loan payments - (60,071) Proceeds from private placements 1,582,800 - Share issuance costs (89,503) - Net cash provided by (used in) financing activities 1,478,297 (122,764) Change in cash during the period 17,217 490,235 Cash, beginning of period 672,522 57,741 Cash, end of period $ 689,739 $ 547,976 Supplemental cash flow information: Finder’s warrants issued $ 9,083 $ - The accompanying notes are an integral part of these condensed interim financial statements. 6 PROSPECT RIDGE RESOURCES CORP. CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited – presented in Canadian Dollars) Share capital Number Amount Commitment to issue finder’s shares Contributed surplus Deficit Total Balance, August 31, 2024 83,149,973 $ 16,872,546 $ 197,143 $ 2,300,417 $ (10,454,494) $ 8,915,612 Shares issued for exploration and evaluation assets 142,857 65,714 (65,714) - - - Share-based payments - - - 14,137 - 14,137 Loss for the period - - - - (877,772) (877,772) Balance, November 30, 2024 83,292,830 $ 16,938,260 $ 131,429 $ 2,314,554 $ (11,332,266) $ 8,051,977 Balance, August 31, 2025 83,652,830 $ 16,956,260 $ 131,429 $ 2,339,210 $ (12,482,091) $ 6,944,808 Shares issued for exploration and evaluation assets 243,180 25,000 - - - 25,000 Shares issued for flow-through private placements 13,190,001 1,582,800 - - - 1,582,800 Share-based payments - - - 49,959 - 49,959 Share issuance costs - (98,586) - 9,083 - (89,503) Loss for the period - - - - (1,406,624) (1,406,624) Balance, November 30, 2025 97,086,011 $ 18,465,474 $ 131,429 $ 2,398,252 $ (13,888,715) $ 7,106,440 The accompanying notes are an integral part of these condensed interim financial statements. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 7 1. NATURE AND CONTINUANCE OF OPERATIONS Prospect Ridge Resources Corp. (the "Company") was incorporated under the laws of the Province of British Columbia on April 6, 2020. The Company is principally engaged in the acquisition and exploration of resource properties. The Company’s registered and records office is located at 24549 53 Ave Langley, BC V2Z 1H6. The Company’s shares are publicly traded on the Canadian Securities Exchange (“CSE”) under the symbol PRR. The Company is in the process of exploring and --- evaluating its resource properties and investing in potential new acquisitions and has not yet determined whether the properties contain ore reserves that are economically recoverable. The recoverability of the amounts shown for exploration and evaluation assets are dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development of those reserves and upon future profitable production. These condensed interim financial statements have been prepared in accordance with IFRS Accounting Standards with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company has incurred losses from inception and does not currently have the financial resources to sustain operations in the long term. During the three months ended November 30, 2025, the Company completed equity financings for aggregate gross proceeds of $1,582,800 (Note 9). While the Company has been successful in obtaining its required funding in the past, there is no assurance that such future financing will be available or be available on favorable terms. An inability to raise additional financing may impact the future assessment of the Company as a going concern. These material uncertainties may cast significant doubt about the ability of the Company to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty. 2. BASIS OF PREPARATION Statement of Compliance These condensed interim financial statements have been prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and are compliant with IAS 34 “Interim Financial Reporting”. These condensed interim financial statements do not include all of the information required for full annual financial statements. Basis of Presentation These condensed interim financial statements have been prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and are compliant with IAS 34 “Interim Financial Reporting”. These condensed interim financial statements do not include all of the information required for full annual financial statements. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 8 2. BASIS OF PREPARATION (cont’d…) Use of Estimate and Judgments The preparation of condensed interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results could differ from these estimates. Critical accounting estimates Share-based payments are subject to estimation of the value of the award at the date of grant using pricing models such as the Black-Scholes option valuation model. The option valuation model requires the input of highly subjective assumptions including the expected share price volatility. Because the Company’s options and warrants have characteristics significantly different from those of traded options and because the subjective input assumptions can materially affect the calculated fair value, such value is subject to measurement uncertainty. Critical account --- ing judgments The carrying value and recoverability of exploration and evaluation assets requires management to make certain estimates, judgments and assumptions about each project. Management considers the economics of the project, including the latest resources prices and the long-term forecasts, and the overall economic viability of the project. Management has assessed these indicators and does not believe an impairment provision is required. Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. The estimate for contingencies and settlement provisions require management to make judgments as to the likelihood of outcomes and estimates of the timing and the possible outflow of economic benefits. The estimation of income taxes includes evaluating the recoverability of deferred tax assets based on an assessment of the Company’s ability to utilize the underlying future tax deductions against future taxable income prior to expiry of those deductions. Management assesses whether it is probable that some or all of the deferred income tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income, which in turn is dependent upon successful discovery, extraction, development and commercialization of mineral reserves. To the extent that management’s assessment of the company’s ability to utilize future tax deductions changes, the Company would be required to recognize more or fewer deferred tax assets, and deferred income tax provisions or recoveries could be affected. 3. MATERIAL ACCOUNTING POLICY INFORMATION The Company’s accounting policies are consistent with those applied in the Company’s financial statements for the year ended August 31, 2025. These condensed interim financial statements should be read in conjunction with the Company’s most recent annual financial statements for the year ended August 31, 2025. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 9 4. RECEIVABLES November 30, 2025 August 31, 2025 GST receivable $ 75,878 $ 20,901 Subscriptions receivable 45,000 - Other receivables 3,318 3,318 Total $ 124,196 $ 24,219 5. EQUIPMENT AND RIGHT-OF-USE ASSETS Right-of- Use Assets – Office Right-of- Use Assets - Vehicles Field Equipment Vehicles Drills Office Equipment Total Cost Balance, August 31, 2024 $ 264,755 $ 143,009 $ 70,706 $ 265,443 $ 114,153 $ 31,827 $ 896,853 Transfers - (143,009) - 143,009 - - - Balance, August 31, 2025 $ 264,755 $ - $ 70,706 $ 415,412 $ 114,153 $ 31,827 $ 896,853 Additions - - 10,350. 5,907 - 1,567 17,824 Balance, November 30, 2025 $ 264,755 $ - $ 81,056 $ 421,319 $ 114,153 $ 33,394 $ 914,677 Accumulated Depreciation Balance, August 31, 2024 $ 22,672 $ 32,083 $ 20,343 $ 34,409 $ 42,997 $ 12,345 $ 164,849 Depreciation 53,397 6,417 8,218 50,436 11,385 4,092 133,945 Transfers - (62,335) - 62,335 - - - Balance, August 31, 2025 $ 130,480 $ - $ 37,384 $ 193,503 $ 68,613 $ 22,281 $ 452,711 Depreciation 12,994 - 1,902 11,243 2,277 775 29,192 Transfers - - - - - - - Balance, November 30, 2025 $ 143,474 $ - $ 39,736 $ 204,746 $ 70,890 $ 23,056 $ 481,903 As at August 31, 2025 $ 134,275 $ - $ 32,87 --- 2 $ 221,909 $ 45,540 $ 9,546 $ 444,142 As at November 30, 2025 $ 121,281 $ - $ 41,319 $ 216,573 $ 43,263 $ 10,338 $ 432,774 The Company’s right-of-use assets relate to the leases on its office premises (Note 6). During the year ended August 31, 2025, the Company fully repaid its vehicle lease obligations. The related right-of- use assets and associated accumulated depreciation were transferred to vehicles. During the three months ended November 30, 2025, the Company recorded additions of $17,824 related to vehicles, field equipment, and office equipment (November 30, 2024 – nil). PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 10 6. LEASE LIABILITIES During the three months ended November 30, 2025, the Company made lease payments in accordance with its lease agreements. In calculating present values, the Company used an annual discount rate of 10% for office leases. The following summarizes the undiscounted minimum lease payments under the lease liabilities as at November 30, 2025: Fiscal year Payments 2026 45,000 2027 60,000 2028 35,000 Amount representing future lease accretion (4,070) Lease liabilities as at November 30, 2025 $ 135,930 The following is a reconciliation of the changes in the lease liabilities: Lease liabilities November 30, 2025 August 31, 2025 Balance, beginning of period $ 147,493 $ 279,566 Additions - - Lease accretion 3,437 16,539 Lease payments (15,000) (148,612) Balance, end of period $ 135,930 $ 147,493 Represented as: Current portion of lease liabilities $ 49,110 $ 47,954 Non-current portion of lease liabilities $ 86,820 $ 99,539 PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 11 7. EXPLORATION AND EVALUATION ASSETS Mineral Property Acquisition Costs by Project Holy Grail Property Knauss Creek Property Excalibur Property Castle Property Camelot Property Total Acquisition costs Balance, August 31, 2024 $ 3,540,000 $ 919,750 $ - $ - $ - $ 4,459,750 Cash - - 6,000 6,000 - 12,000 Shares - - 9,000 9,000 - 18,000 Balance, August 31, 2025 $ 3,540,000 $ 919,750 $ 15,000 $ 15,000 $ - $ 4,489,750 Cash - - - - 10,000 10,000 Shares - - - - 25,000 25,000 Balance, November 30, 2025 $ 3,540,000 $ 919,750 $ 15,000 $ 15,000 $ 35,000 $ 4,524,750 Holy Grail Property On August 26, 2021, the Company entered into an agreement (the “Holy Grail Option Agreement”) with Loan Wolf Exploration Ltd. (“Loan Wolf”), whereby the Company had the option to acquire a 100% interest in the Holy Grail Property, including the placer claims comprising the Property, in north of Terrace, B.C. On January 31, 2023, the Company and Loan Wolf entered into a settlement agreement (“the Holy Grail Settlement Agreement”) to supersede the terms of the Holy Grail Option Agreement, whereby the Company finalized its acquisition of 100% of the Holy Grail property. Upon execution of the Holy Grail Settlement Agreement, there are no further payments or commitments with respect to the Holy Grail property. Concurrently, on January 31, 2023, the Company also entered into a net smelter returns royalty agreement (the “NSR Royalty Agreement”), whereby the original terms of the NSR pursuant to the Holy Grail Option Agreement were amended. Pursuant to the NSR Royalty Agreement, the Holy Grail property is subject --- to a 3% NSR, comprised of 1.5% payable to Loan Wolf, of which 1% can be purchased by the Company, for $1,000,000, and 1.5% payable to Knauss Creek Mines Ltd. of which 1% can be purchased for $1,000,000. The NSR repurchase is available at any time prior to the date which is 180 days after commencement of commercial production. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 12 7. EXPLORATION AND EVALUATION ASSETS (cont’d…) Holy Grail Property (cont’d…) Holy Grail Finder’s Fees In connection with the Holy Grail Option Agreement, the Company entered into a finder’s fees agreement with Triple K Ventures Ltd., a company related to the Chairman of the Board, pursuant to which the Company will pay finder’s fees of 1,000,000 common shares in the capital of the Company (the “Finder’s Shares”), upon the successful closing of the transaction in accordance with the following schedule: (a) 285,715 Finder’s Shares on the date that the Option Agreement is signed; (issued with a fair value of $131,429) (b) 142,857 Finder’s Shares on the first anniversary of the Option Agreement; (issued with a fair value of $65,714) (c) 142,857 Finder’s Shares on the second anniversary of the Option Agreement; (issued with a fair value of $65,714) (d) 142,857 Finder’s Shares on the third anniversary of the Option Agreement; (issued with a fair value of $65,714) (e) 142,857 Finder’s Shares on the fourth anniversary of the Option Agreement and; (f) 142,857 Finder’s Shares on the fifth anniversary of the Option Agreement; On entering into the finder’s fee agreement, the Company recorded a commitment to issue finder’s shares of $460,000. As at November 30, 2025, the commitment to issue finder’s shares has been reduced to $131,429. Knauss Creek Property On November 3, 2021, the Company entered an agreement (the “Knauss Creek Agreement”) with Loan Wolf and Knauss Creek Mines Ltd. (“Knauss”) to acquire a 100% interest in the Knauss Creek Property, for a cash payment of $10,000 (paid), the issuance of 1,200,000 common shares (issued at a total value of $808,000) and incurring total exploration expenditures of $1,000,000 (incurred) on or before October 31, 2023. The Company completed the requirements during the year ended August 31, 2023, accordingly, acquired 100% of the Knauss Creek Property. On January 31, 2023, the Company entered into the NSR Royalty Agreement, pursuant to which the terms of the NSR on the Knauss Creek Property were amended to the same 3% NSR terms as the Holy Grail Property (as above). The NSR is comprised of 1.5% payable to Loan Wolf, of which 1% can be purchased for $1,000,000, and 1.5% payable to Knauss Creek Mines Ltd. of which 1% can be purchased for $1,000,000. The NSR repurchase is available at any time prior to the date which is 180 days after commencement of commercial production. The Company has issued an aggregate of 100,000 common shares to Loan Wolf as finder’s fees under the Knauss Creek Agreement. No further shares are issuable. Excalibur (Jacobite) Property On July 4, 2025, the Company entered into an agreement (the “Excalibur Agreement”) with Henry Awmack, Attunga Holdings Inc. (David Caulfield), and Mark Baknes (the “Excalibur Vendors”) to acquire a 100% interest in the Excalibur Property, located in the Omineca Mining Division of British Columbia. Under the Excalibur Agreement, the Company may earn a 100% --- interest by making cash payments totaling $165,000 and issuing 1,100,000 common shares in stages over a five-year earn-in period ending July 8, 2030. The Company must also complete $202,000 in exploration expenditures by the one-year anniversary date. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 13 7. EXPLORATION AND EVALUATION ASSETS (cont’d…) Excalibur Property (cont’d…) The Company made the initial payment of $6,000 in cash and issued 180,000 common shares with a fair value of $9,000 in July 2025. Upon exercise, the Excalibur Property will be subject to a 1.5% net smelter return (“NSR”) royalty, allocated 0.5% to each vendor. The Company has the right to repurchase 0.3% of each 0.5% NSR for $133,333, $266,667, or $533,333 depending on project milestones. The royalty agreement also provides for annual advance royalty payments of $2,000 beginning in year six, increasing to $4,000 in year eleven and $6,000 in year fifteen. These payments are creditable against future NSR obligations and cease on commercial production or abandonment. Castle Property On June 30, 2025, the Company entered into an agreement (the “Castle Agreement”) with Henry Awmack, Attunga Holdings Inc. (David Caulfield), and Mark Baknes (the “Castle Vendors”) to acquire a 100% interest in the Castle Property, located in the Liard Mining Division of British Columbia. Under the Castle Agreement, the Company may earn a 100% interest by making cash payments totaling $165,000, issuing 1,100,000 common shares in stages over a five-year earn-in period ending July 2, 2030. The Company must also complete a work program of up to $283,000 (minimum $240,000 if an IP permit is not received) by the first anniversary date. The Company made the initial payment of $6,000 in cash and issued 180,000 common shares with a fair value of $9,000 in July 2025. Upon exercise, the Castle Property will be subject to a 1.5% NSR royalty, allocated 0.5% to each vendor. The Company has the right to repurchase 0.3% of each 0.5% NSR for $133,333, $266,667, or $533,333 depending on project milestones. The royalty agreement also provides for annual advance royalty payments of $2,000 beginning in year six, increasing to $4,000 in year eleven and $6,000 in year fifteen. These payments are creditable against future NSR obligations and cease on commercial production or abandonment. Camelot Property On September 2, 2025, the Company entered into a purchase agreement (the “Camelot Agreement”) with Evrim Exploration Canada Ltd. (the “Vendor”) and Orogen Royalties Inc. to acquire a 100% interest in the Camelot copper– gold porphyry project, formerly known as the Lemon Lake Property, located in British Columbia. Under the Camelot Agreement, the Company acquired all mineral rights associated with the property in consideration for the issuance of 243,180 common shares, which were issued on September 12, 2025, and an additional $175,000, payable in cash or common shares of the Company, at the Company’s sole discretion, based on the 10-day volume- weighted average price, within six months and two days of the Approval Date. The Camelot Property is subject to a 1.0% net smelter returns (“NSR”) royalty in favor of the Vendor and a 1% NSR royalty in favour of an underlying royalty holder. Prospect Ridge will be able to buydown 0.5% of the underlying 1% NSR royalty for a one time payment of --- $1,000,000. The Company is required to make annual advance royalty payments of $10,000, commencing in November 2025, which are creditable against future NSR obligations. No further cash payments, share issuances, or work commitments are required in order for the Company to maintain its 100% interest in the Camelot Property. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 14 7. EXPLORATION AND EVALUATION ASSETS (cont’d…) Exploration and evaluation expenditures Exploration and evaluation expenditures for the three months ended November 30, 2025 are detailed below: Holy Grail Knauss Creek Excalibur Castle Camelot Total Claims $ - $ 722 $ - $ - $ - $ 722 Geology 165 280 279,641 263,148 208,305 751,539 Geophysics - - 180,011 89,321 5,158 274,490 Prospecting/Geochemistry 20,315 18,873 1,762 25,867 38,777 105,594 Drilling - 124 - - 633 757 $ 20,480 $ 19,999 $ 461,414 $ 378,336 $ 252,873 $ 1,133,102 Exploration and evaluation expenditures for the year ended August 31, 2025 are detailed below: Holy Grail Knauss Creek Excalibur Castle Total Claims $ 9,792 $ 2,772 $ - $ - $ 12,564 Geology 3,694 13,489 17,948 28,542 63,673 Geophysics - 1,292 - - 1,292 Prospecting/Geochemistry 191,849 163,534 10,857 17,414 383,654 Drilling - 541,693 541,693 $ 205,335 $ 722,780 $ 28,805 $ 45,956 $ 1,002,876 As at November 30, 2025, the Company has no BC mineral exploration tax credit (“BC METC”) receivable (August 31, 2024 – $159,710). The Company did not receive any BC METC refunds during the three months ended November 30, 2025 (November 30, 2024 – $392,524). 8. RECLAMATION DEPOSITS As at November 30, 2025, the Company held $59,500 (August 31, 2025 - $59,500) in deposits with a financial institution as security for reclamation requirements in relation to the Holy Grail and Knauss Creek properties. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 15 9. SHARE CAPITAL Authorized Share Capital The Company’s authorized share capital consists of an unlimited number of common shares without par value. Issued Share Capital Fiscal 2026 share issuances During the three months ended November 30, 2025, the Company issued: a) 243,180 common shares with a deemed value of $25,000 in connection with the acquisition of the Camelot exploration property (Note 7). b) 13,190,001 common shares issued pursuant to flow-through private placements for gross proceeds of $1,582,800. Fiscal 2026 flow-through private placement During the three months ended November 30, 2025, the Company completed a non-brokered flow-through (“FT”) private placement for aggregate gross proceeds of $1,582,800 (the “FT Placement”). The FT Placement consisted of the issuance of 13,190,001 flow-through units, at a price of $0.12 per unit, with each unit consisting of one flow-through common share and one-half of one common share purchase warrant, with each whole warrant exercisable at $0.18 per share for a period of 24 months from the date of issuance. In connection with this financing, the Company paid cash finder’s fees of $89,502 and issued 745,850 finder warrants, each exercisable at $0.18 per share for a period of 24 months from the date of issuance. As of November 30, 2025, no amount of the flow-through funds had been expended. Fiscal 2025 share iss --- uances During the year ended August 31, 2025, the Company issued 142,857 Finder’s Shares with a fair value of $65,714 on the third anniversary of the Holy Grail Option Agreement (Note 7). During the year ended August 31, 2025, the Company issued: a) 180,000 common shares with a fair value of $9,000 in connection with the option agreement to acquire a 100% interest in the Excalibur Property (Note 7). b) 180,000 common shares with a fair value of $9,000 in connection with the option agreement to acquire a 100% interest in the Castle Property (Note 7). PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 16 9. SHARE CAPITAL (cont’d…) Issued Share Capital (cont’d…) Fiscal 2024 non-flow-through private placement During the year ended August 31, 2024, the Company closed its non-brokered non-flow-through (“NFT”) private placement of $0.16 units announced May 29, 2024, for aggregate proceeds of $2,860,520 (the “NFT Placement”) in three tranches: a) The first tranche consisted of an aggregate of 13,284,500 NFT units for gross proceeds of $2,125,520, each NFT unit comprising one common share and one half of one common share purchase warrant; each whole warrant is exercisable for two years at a price of $0.25 per share. The Company paid cash commissions of $28,515 and issued 189,157 broker warrants exercisable for two years at a price of $0.25 per share, valued at $17,129. b) The second tranche consisted of an aggregate of 1,681,259 units for gross proceeds of $269,000. The Company paid cash commissions of $560 and issued 3,500 broker warrants at the same terms as the previous tranche, valued at $376. c) The third and final tranche consisted of an aggregate of 2,912,500 units for gross proceeds of $466,000. The Company paid cash commissions of $11,690 and issued 73,062 broker warrants at the same terms as the previous tranches, valued at $8,894. Fiscal 2024 flow-through private placement During the year ended August 31, 2024, the Company closed its non-brokered flow-through (“FT”) private placement of $0.18 units announced June 14, 2024, for aggregate proceeds of $2,358,327 (the “FT Placement”) in two tranches: a) The first tranche consisted of an aggregate of 5,384,377 FT units for gross proceeds of $969,188, each FT unit comprising one FT common share and one half of one common share purchase warrant; each whole warrant is exercisable for two years at a price of $0.30 per share. The Company paid cash commissions of $49,000 and issued 282,021 broker warrants exercisable for two years at a price of $0.30 per share, valued at $28,314. b) The second and final tranche consisted of an aggregate of 7,717,441 FT units for gross proceeds of $1,389,139. The Company paid cash commissions of $89,111 and issued 495,063 broker warrants exercisable for two years at a price of $0.30 per share, valued at $56,372. Of the aggregate FT proceeds of $2,358,327, $2,358,314 in expenditures and available income tax benefits will be renounced to the FT shareholders effective December 31, 2024. As of November 30, 2025, $2,135,088 of the funds had been spent and $223,239 remains to be spent. Other fiscal 2024 share issuances During the year ended August 31, 2024, the Company issued 142,857 Finder’s Shares with a fair value of $65,714 on the second anniversary of the Holy Grail Option Agreement (Note 8). PROSPECT RIDGE RESOURCES CORP. NOTES TO THE --- CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 17 9. SHARE CAPITAL (cont’d…) Stock options The Company has a stock option plan under which it is authorized to grant options to executive officers and directors, employees and consultants enabling them to acquire up to 10% of the issued and outstanding common shares of the Company. The term of any options granted under the plan is determined by the Board of Directors at the time of grant, provided that no option may exceed a term of ten years, other than extensions permitted due to a blackout period. The fair value of stock options is estimated using the Black-Scholes option pricing model, which requires assumptions regarding the risk-free interest rate, expected dividend yield, expected volatility, forfeiture rate, and expected life of the options. The exercise price of each option is set at the market price of the Company’s shares, less any applicable discount, on the date of grant. Stock option transactions are summarized as follows: Number Weighted Average Exercise Price Balance, August 31, 2024 3,950,000 $ 0.20 Granted 2,100,000 0.15 Cancelled (800,000) 0.21 Balance, August 31, 2025 5,250,000 $ 0.13 Granted 1,300,000 0.15 Cancelled 100,000 0.20 Balance, November 30, 2025 6,450,000 0.14 Balance, November 30, 2025, exercisable 5,525,000 $ 0.16 During the three months ended November 30, 2025, the Company granted 1,300,000 stock options (November 30, 2024 – nil). The weighted fair value of options granted during the three months ended November 30, 2025, was $0.15 (November 30, 2024 - nil). Total share-based payments recognized in the statement of loss and comprehensive loss for the three month period ended November 30, 2025, was $49,947 (November 30, 2024 - $14,137) for incentive options vested in the period. As at November 30, 2025, the following stock options were outstanding: Number Outstanding Number and Exercisable Exercise Price Expiry Date Remaining Life (years) 2,000,000 2,000,000 $ 0.20 March 1, 2028 2.25 500,000 500,000 $ 0.20 March 3, 2028 2.26 500,000 500,000 $ 0.205 January 5, 2029 3.10 50,000 50,000 $ 0.235 July 30, 2029 3.67 2,100,000 1,050,000 $ 0.15 February 25, 2030 4.24 1,300,000 1,300,000 $ 0.15 October 22, 2030 4.90 6,450,000 5,525,000 $ 0.13 PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 18 9. SHARE CAPITAL (cont’d…) Warrants Warrant transactions are summarized as follows: Number Weighted Average Exercise Price Balance, August 31, 2024 - $ - Granted 16,532,833 0.27 Balance, August 31, 2025 16,532,833 $ 0.27 Granted 7,340,848 0.18 Balance, November 30, 2025 23,873,681 $ 0.24 During the three months ended November 30, 2025, the Company issued an aggregate of 6,594,998 common share purchase warrants in connection with its flow-through financings and 745,850 finder warrants, for a total of 7,340,848 warrants issued during the period. Each warrant is exercisable at $0.18 per share and expires two years from the date of issuance. During the year ended August 31, 2024, the Company issued: a) An aggregate of 8,939,125 warrants exercisable at a price of $0.25 for a period of two years pursuant to the NFT Placement; and b) An aggregate of 265,719 broker warrants exercisable at a price of $0.25 for a period of two years pursuant to the NFT Placement, which w --- ere valued at an aggregate fair value of $26,399 using the following weighted-average Black-Scholes assumptions: volatility of 118.42%, expected life of two years, risk-free interest rate of 3.80% and dividend rate of 0%. c) An aggregate of 6,550,905 warrants exercisable at a price of $0.30 for a period of two years pursuant to the FT Placement; and d) An aggregate of 777,084 broker warrants exercisable at a price of $0.30 for a period of two years pursuant to the FT Placement, which were valued at an aggregate fair value of $84,686 using the following weighted-average Black-Scholes assumptions: volatility of 119.55%, expected life of two years, risk-free interest rate of 3.74% and dividend rate of 0%. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 19 9. SHARE CAPITAL (cont’d…) Warrants (cont’d…) As at November 30, 2025, the following warrants were outstanding: Number Outstanding Exercise Price Expiry Date Remaining Life (years) 6,831,407 $ 0.25 June 13, 2026 0.53 844,125 $ 0.25 July 5, 2026 0.59 2,974,208 $ 0.30 July 5, 2026 0.65 1,529,312 $ 0.25 July 24, 2026 0.65 4,353,781 $ 0.30 July 24, 2026 0.65 5,391,667 $ 0.18 October 27, 2027 1.91 711,667 $ 0.18 October 27, 2027 1.91 1,203,333 $ 0.18 November 13, 2027 1.95 34,183 $ 0.18 November 13, 2027 1.95 23,873,681 10. RELATED PARTY TRANSACTIONS Related parties and related party transactions impacting the accompanying financial statements are summarized below and include transactions with the following individuals or entities: Key management personnel Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of members of the Company’s Board of Directors, corporate officers, including the Company’s Chairman of the Board, Chief Executive Officer, Chief Financial Officer, Corporate Secretary, and President. Key management personnel payments for the three months ended November 30, 2025 and 2024, included: 2025 2024 Directors’ fees $ 18,000 $ 12,000 Management and consulting fees 85,500 50,000 Exploration related and geological consulting fees - 50,000 Professional fees 15,000 30,000 $ 118,500 $ 142,000 As at November 30, 2025, $144,979 (November 30, 2024 – $167,233) was included in accounts payables and accrued liabilities for amounts owed to related parties. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 20 11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Financial assets and liabilities are classified in the fair value hierarchy according to the lowest level of input that is significant to the fair value measurement. Assessment of the significance of a particular input to the fair value measurement requires judgment and may affect placement within the fair value hierarchy levels. The carrying values of cash, refundable tax credits, receivables and accounts payable and accrued liabilities approximate their fair values due to the short-term nature of these instruments. The carrying value of the reclamation deposit approximates its carrying value due to the restricted nature of the financial instrument. The carrying values of lease liabilities and loan payable appr --- oximate their fair values due to being discounted with rates of interest that approximate market rates. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values. The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below: Credit risk Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s receivables consist mainly of tax credit receivables due from the Government of Canada. As at November 30, 2025, the Company’s exposure to credit risk is minimal. Liquidity risk The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at November 30, 2025, the Company had a cash balance of $689,739 and a short-term investment balance of $1,001,182 to settle current liabilities of $358,832. All of the Company's accounts payable and accrued liabilities have contractual maturities of 30 days or are due on demand and are subject to normal trade terms. Management monitors the Company’s contractual obligations and other expenses to ensure adequate liquidity is maintained. Market risk Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity and equity prices. a) Interest rate risk As at November 30, 2025, the Company was not subject to or exposed to significant interest rate risk. b) Foreign currency risk The Company’s operating costs are primarily in Canadian dollars. As at November 30, 2025, management believes the Company’s exposure to foreign currency risk is not significant. PROSPECT RIDGE RESOURCES CORP. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Unaudited – presented in Canadian Dollars) 21 11. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (cont’d…) Market risk (cont’d…) c) Price risk The Company is exposed to price risk with respect to commodity and equity prices. Equity price risk is defined as the potential adverse impact on the Company’s earnings due to movements in individual equity prices or general movements in the level of the stock market. Commodity price risk is defined as the potential adverse impact on earnings and economic value due to commodity price movements and volatilities. As at November 30, 2025, the Company was not exposed to any equity or commodity price risks. 12. CAPITAL MANAGEMENT The Company’s objective when managing capital is to maintain its ability to continue as a going concern in order to provide returns and/or benefits for shareholders. The Company considers its shareholders’ equity to be its capital. The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the administration of its corporate affairs and to provide funds for the development of its business. The Board of Directors does not establish quantitative return on capital criteria for management but rather relies on the expertise of the Company’s management and consultants to sustain future development of the business. The Compan --- y has no revenue-generating operations and as such is dependent upon external financing to fund activities. In order to develop its business and pay for administrative costs, the Company will spend its existing working capital and raise additional funds as required. Management reviews its capital management approach on an ongoing basis and believes that this approach is reasonable given the size of the Company. There were no changes in the Company’s approach to capital management during the three-month period ended November 30, 2025. The Company is not subject to externally imposed capital requirements. 13. SUBSEQUENT EVENTS On December 5, 2025, the Company issued 416,667 flow-through units each unit consists of one flow-through common share and one-half of one share purchase warrant, with each whole warrant exercisable at $0.18 for a period of two years, for gross proceeds of $50,000. On December 29, 2025, the Company completed a non-brokered private placement through the issuance of 8,894,445 flow-through units at a price of $0.09 per unit, for gross proceeds of $800,500. Each flow-through unit consisted of one common share and one-half of one common share purchase warrant, with each whole warrant exercisable at $0.15 per share until December 29, 2027. In connection with this financing, the Company issued 591,111 finder’s warrants, each exercisable at $0.15 per share until December 29, 2027.