SEDAR Interim Financial Statements

ROUTE 109 RESOURCES INC. CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIODS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian Dollars) (Unaudited – Prepared by Management) NOTICE OF NO AUDITOR REVIEW OF 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 interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited 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 financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity’s auditor ROUTE 109 RESOURCES INC. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION AS AT NOVEMBER 30, 2025 AND AUGUST 31, 2025 (Expressed in Canadian Dollars) (Unaudited) The accompanying notes are an integral part of these condensed interim financial statements. 1 November 30, August 31, 2025 2025 Notes ASSETS Current assets Cash $ 112,023 $ 181,230 GST receivable 3,096 19,057 Prepaid expenses 5 36,045 2,463 Total current assets 151,164 202,750 Non-current assets Exploration and evaluation assets 6 15,437,954 15,437,954 TOTAL ASSETS $ 15,589,118 $ 15,640,704 LIABILITIES Current liabilities Accounts payable and accrued liabilities 7 $ 279653 $ 298,219 Loans 8 200,737 193,863 Total current liabilities 480,390 492,082 TOTAL LIABILITIES 480,390 492,082 SHAREHOLDERS’ EQUITY Share capital 9 18,507,756 18,507,756 Share-based payment reserve 1,356,282 1,356,282 Contributed surplus 386,797 386,797 Accumulated deficit (5,142,107) (5,102,213) TOTAL SHAREHOLDERS’ EQUITY 15,108,728 15,148,622 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 15,589,118 $ 15,640,704 Nature of operations and going concern (Note 1) These financial statements were approved for issue by the Board of Directors on January 28, 2026 and are signed on its behalf by: On behalf of the Board: “Robert Pryde” Director “Verlee Webb” Director ROUTE 109 ROURCES INC. (formerly BMEX GOLD INC.) CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) (Unaudited) The accompanying notes are an integral part of these condensed interim financial statements. 2 November 30, November 30, 2025 2024 Notes EXPENSES Accretion expense 8 $ 6,874 $ 6,116 Executive compensation 10 22,500 36,000 Office and general 4,020 5,226 Professional fees - 395 Transfer agent and regulatory fees 6,500 31,619 (39,894) (79,356) Loss and comprehensive loss for the period $ (39,894) $ (79,356) Basic and diluted loss per common share $ (0.00) $ (0.00) Weighted average number of common shares outstanding 16,759,889 16,615,889 ROUTE 109 RESOURCES INC. CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Expressed in Canadian dollars) (Unaudited) The accompanying notes are an integral part of these condensed interim financial statements. 3 Number of shares Share capital Share-based payment reserve Contributed surplus Deficit Total shareholders’ equity August 31, 2024 16,615,889 $ 18,428,556 $ 1,435,482 $ 386,797 $ (4,865,403) $ 15,385,432 Loss and comprehensive loss for the period - - - - (79,356) (79,356) November 30, 2024 16,615,889 $ 18,428,556 $ --- 1,435,482 $ 386,797 $ (4,944,759) $ 15,306,076 August 31, 2025 16,759,889 $ 18,507,756 $ 1,356,282 $ 386,797 $ (5,102,213) $ 15,148,622 Loss and comprehensive loss for the period - - - - (39,894) (39,894) November 30, 2025 16,759,889 $ 18,507,756 $ 1,356,282 $ 386,797 $ (5,142,107) $ 15,108,728 ROUTE 109 RESOURCES INC. CONDENSED INTERM STATEMENTS OF CASH FLOW FOR THE THREE MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (Expressed in Canadian dollars) (Unaudited) The accompanying notes are an integral part of these condensed interim financial statements. 4 November 30, November 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss for the period $ (39,894) $ (79,356) Items not involving cash: Accretion expense 6,874 6,116 Changes in non-cash operating working capital: GST receivable 15,961 (5,356) Prepaid expenses (33,582) (17,849) Accounts payable and accrued liabilities 387 (74,746) Net cash provided by (used in) operating activities (50,254) (171,191) CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation assets (18,953) (83,678) Net cash used in investing activities (18,953) (83,678) Change in cash during the period (69,207) (254,869) Cash, beginning of period 181,230 1,238,404 Cash, end of period $ 112,023 $ 985,535 Cash paid for interest $ - $ - Cash paid for income taxes $ - $ - During the period ended November 30, 2025, the Company had the following non-cash transactions affecting cash flows from investing and financing activities: • Included in accounts payable and accrued liabilities as at November 30, 2025 is $153,000 for exploration and evaluation assets (August 31, 2024 - $171,953). During the period ended November 30, 2024, the Company had the following non-cash transactions affecting cash flows from investing and financing activities: • Included in accounts payable and accrued liabilities as at November 30, 2024 is $13,494 for exploration and evaluation assets (August 31, 2024 - $26,345). ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 5 1. Nature of Operations and Going Concern Route 109 Resources Inc. was incorporated on July 10, 2017 under the Business Corporations Act (British Columbia). On February 22, 2018 the Company’s common shares were listed on the TSX Venture Exchange (“TSXV”) as a Tier 2 resource company. The Company’s trading symbol is “RTE”. The Company’s principal office is located at Suite 1400 - 1185 Georgia Street, West Vancouver, BC, V6E 4E6. Effective March 22, 2024, the Company consolidated its common shares on the basis of 10:1. For every 10 old unconsolidated common shares, 1 new consolidated common share was issued. All share, and per share amounts have been retroactively restated to reflect this share consolidation. As at November 30, 2025, the Company had working capital deficit of $329,226 and an accumulated deficit of $5,142,107. While the Company has been successful in securing financing in the past there can be no assurance that it will be able to do so in the future. These factors indicate the existence of material uncertainties that may cast significant doubt about the Company’s ability to continue as a going concern, and accordingly, the appropriateness of the use of accounting principles applicable to a going concern. The Company has not yet determined whether its properties contain economically recoverable reserves and expects to incur further losses in the exploration of its properties. The --- se condensed interim financial statements have been prepared in accordance with IFRS Accounting Standards on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. These financial statements do not include adjustments to amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue operations. These adjustments could be material. 2. Basis of Preparation Statement of Compliance These condensed interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting (“IAS 34”), as issued by the International Accounting Standards Board (“IASB”), and its interpretations, using accounting policies consistent with International Financial Reporting Standards (“IFRS”). The condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended August 31, 2025, which have been prepared in accordance with IFRS as issued by the IASB and interpretations of the IFRS Interpretations Committee (“IFRIC”). Basis of Measurement The Company’s condensed interim financial statements have been prepared on the historical cost basis except for the revaluation of certain financial assets and financial liabilities to fair value. The condensed interim financial statements are presented in Canadian dollars unless otherwise stated. ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 6 3. Material Accounting Policies The accounting policies set out in the audited financial statements for the year ended August 31, 2025 have been applied consistently to all periods presented in these condensed interim financial statements. 4. Significant Accounting Judgement, Estimates and Assumptions The preparation of these financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical Judgments The following are critical judgments that management has made in the process of applying accounting policies and that have the most significant effect on the amounts recognized in the financial statements: (i) The determination of categories of financial assets and financial liabilities has been identified as an accounting policy which involves judgments or assessments made by management. (ii) Management is required to assess whether there is evidence of impairment in respect of exploration and evaluation assets. The triggering events for an impairment test are defined in IFRS 6. In making the assessment, management is re --- quired to make judgments on the status of each project and the future plans towards finding commercial reserves. The nature of exploration and evaluation activity is such that only a proportion of projects are ultimately successful and some assets are likely to become impaired in future periods. (iii) The assessment of the probability of future taxable income in which deferred tax assets can be utilized is based on the Company’s estimate of future profits or losses adjusted for significant non-taxable income and expenses and specific limits to the use of any unused tax loss or credit. The tax rules in the jurisdictions in which the Company operates are also carefully taken into consideration. If a positive forecast of taxable income indicates the probable use of a deferred tax asset, especially when it can be utilized without a time limit, that deferred tax asset is usually recognized to the extent of the amount expected to be utilized. The recognition of deferred tax assets that are subject to certain legal or economic limits or uncertainties is assessed individually by management based on the specific facts and circumstances. (iv) At the end of each reporting period, management exercises judgment in assessing the Company’s ability to continue as a going concern by reviewing the Company’s performance, resources and future obligations. The conclusion that the Company will be able to continue as a going concern is subject to critical judgements of management with respect to assumptions surrounding the short and long-term operating budgets, expected profitability, investment and financing activities and management’s strategic planning. Management believes there is sufficient capital to meet the Company’s business obligations for at least the next twelve months, after taking into account expected cash flows and the Company’s cash position at period-end. ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 7 4. Significant Accounting Judgement, Estimates and Assumptions (continued) Estimation Uncertainty The following are key assumptions concerning the future and other key sources of estimation uncertainty that have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year: (i) The assessment of any impairment of non-current assets is dependent upon estimates of the recoverable amount that take into account factors such as reserves, economic and market conditions, recoverability of value added taxes and the useful lives of assets. (ii) Provisions for income taxes are made using the best estimate of the amount expected to be paid based on a qualitative assessment of all relevant factors. The Company reviews the adequacy of these provisions at the end of the reporting period. However, it is possible that at some future date an additional liability could result from audits by taxing authorities. Where the final outcome of these tax-related matters is different from the amounts that were originally recorded, such differences will affect the tax provisions in the period in which such determination is made. 5. Prepaid Expenses Prepaid expenses as at November 30, 2025 and August 31, 2025 consist of the following: November 30, 2025 August 31, 2025 Prepaid filing fees $ 23,130 $ - Prepaid insurance 12,915 2,463 $ 36,045 $ 2,463 ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINA --- NCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 8 6. Exploration and Evaluation Assets King Tut Property, Ligneris and Celoron Townships in the Province of Quebec On August 11, 2020 (the “Agreement Date”), the Company and Greg Exploration Inc. (the “Optionor”) reached an agreement to option the King Tut Property located in the Ligneris and Celoron townships in the Province of Quebec. The Company entered into an amended agreement on August 1, 2021. Under the terms of the option agreement and the amended agreement, the Company acquired 100% ownership in certain mineral claims, for the following consideration: (i) Pay $200,000 on signing of the agreement (paid); (ii) Pay $100,000 on the 6 month anniversary of the Agreement Date (paid); (iii) Issue 2,000,000 common shares within five business days of TSXV approval of the amended agreement (issued). Greg Exploration Inc. retained a 2% net smelter returns royalty, with an additional 1% net smelter returns royalty on a subset of claims. The Company may purchase the 1% net smelter royalty on the subset of claims for $1,000,000 at any time. The Company also agreed to make the following milestone payments to the Optionor: • Upon receipt by the Company of an independent technical report prepared in accordance with National Instrument 43- 101 confirming the existence of a mineral resource on the Property containing at least 500,000 ounces of gold in the measured and indicated categories, the Company shall pay to the two Optionors a payment of $500,000 in cash, or, at the option of the Optionee, in common shares of the Company. • Upon completion and delivery of a positive pre-feasibility study on the property, the Company shall also pay to the Optionor $500,000, in cash, or, at the option of the Company, in common shares of the Company. In addition to the payments above, the Company paid a cash finders fee of $36,000 for this property during the year ended August 31, 2020. Dunlop Bay Property, Matagami in the Province of Quebec On November 12, 2020 (the “Agreement Date”), the Company and six arm’s-length optionors, namely 9219-8845 QC Inc., Anna-Rosa Giglio, Tony Perron, Steve LaBranche, Serge Robert, and Alain Theberge (collectively, the “Optionors”) reached an agreement to option the Dunlop Bay Property located near Matagami in the Province of Quebec. The Company entered into an amended agreement on August 1, 2021. Under the option agreement and the amended agreement, the Company acquired 100% ownership in 76 mineral claims, for an aggregate of 15,000,000 of its common shares and payment of an aggregate $300,000 in cash as follows: (i) 6,500,000 common shares of the Company upon receipt of TSX Venture Exchange acceptance of the Agreement (the “Approval Date”) (issued); (ii) 6,500,000 common shares of the Company within three months of the Approval Date (issued); (iii) $200,000 on completion of the Optionee’s next equity financing; (paid) (iv) $100,000 on the 6 month anniversary of the Approval Date; (paid) (v) Issue 2,000,000 common shares within five business days of TSXV approval of the amended agreement (issued). Optionors retained a 2% net smelter returns royalty. The Company also agreed to make the following milestone payments to two Optionors: • Upon receipt by the Company of an independent technical report prepared in accordance with National Instrument 43- 101 confirming the existence of a mineral resource on the Property containing at least 500,000 ounces of --- gold in the measured and indicated categories, the Company shall pay to the two Optionors a payment of $500,000 in cash, or, at the option of the Optionee, in common shares of the Company. • Upon completion and delivery of a positive pre-feasibility study on the property, the Company shall also pay to the two Optionors $500,000, in cash, or, at the option of the Company, in common shares of the Company. In addition to the payments above, the Company paid a finders’ fee of $43,500 and 625,000 shares valued at $468,750 for this property, during the year ended August 31, 2021. ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 9 6. Exploration and Evaluation Assets (continued…) The following is a summary of additions to exploration and evaluation assets as at November 30, 2025: King Tut Property, Ligneris and Celoron Townships Dunlop Bay Property Total Acquisition costs Balance, August 31, 2024 $ 636,000 $ 9,172,250 $ 9,808,250 Claim acquisition and renewal fees 11,053 7,074 18,127 Balance, August 31, 2025 and November 30, 2025 $ 647,053 $ 9,179,324 $ 9,826,377 Exploration and evaluation costs Balance, August 31, 2024 $ 2,472,752 $ 2,231,162 $ 4,703,914 Consulting 3,402 22,949 26,351 Drilling 5,477 - 5,477 Geological reports - 912,305 912,305 Geological core logging 3,439 34,250 37,689 Geological modelling - 13,629 13,629 Survey 26,790 - 26,790 Taxes - (128,489) (128,489) Transportation 13,911 - 13,911 Balance, August 31, 2025 and November 30, 2025 $ 2,525,771 $ 3,085,806 $ 5,611,577 Total acquisition and exploration and evaluation costs Balance, August 31, 2025 $ 3,172,824 $ 12,265,130 $ 15,437,954 Balance, November 30, 2025 $ 3,172,824 $ 12,265,130 $ 15,437,954 Although the Company takes steps to verify title to exploration and evaluation assets 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. ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 10 7. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as at November 30, 2025 and August 31, 2025 consist of the following: November 30, 2025 August 31, 2025 Accounts payable $ 256,153 $ 255,769 Accrued audit fees 23,500 42,450 $ 279,653 $ 298,219 8. Loans On May 31, 2024, the Company entered into agreements with certain vendors, to transfer $220,222 of amounts owing to them from accounts payable, to loans. The loans mature on May 31, 2026, and are non-interest bearing. Upon initial recognition, the loans were recorded at fair value, using a 15% discount rate. Balance, August 31, 2024 $ 172,490 Accretion expense 25,873 Repayment (4,500) Balance, August 31, 2025 193,863 Accretion expense 6,874 Balance, November 30, 2025 $ 200,737 Of the loans payable at November 30, 2025 $117,606 are due to directors and officers of the Company (August 31, 2025, $113,579) (Note 10). 9. Share Capital (a) Authorized Share Capital The Company’s authorized share capital consists of an unlimited number of common shares without par value and unlimited preferred shares without par value. All issued common shares are fully paid. (b) Share Capital Transactions Effective March 22, 2024, the Company consolidated its common shares on the basis of 10:1. For every 10 old uncons --- olidated common shares, 1 new consolidated common share was issued. All share, and per share amounts have been retroactively restated to reflect this share consolidation. During the period ended November 30, 2025, the Company had no share capital transactions. During the year ended August 31, 2025: • On December 15, 2024, the Company issued 144,000 common shares upon exercise of restricted share units, with a fair value of 79,200. ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 11 9. Share Capital (continued…) (d) Stock Options The Company has established a rolling share option plan (the “Plan”), in which the maximum number of common shares which can be reserved for issuance under the Plan is 10% of the issued and outstanding shares of the Company. The minimum exercise price of the options is set at the Company’s closing share price on the day before the grant date, less allowable discounts. Options granted may be subject to vesting provisions as determined by the Board of Directors and have a maximum term of ten years. During the period ended November 30, 2025, and the year ended August 31, 2025, the Company did not issue any stock options. A summary of changes in the Company’s stock options is as follows: Number of options Weighted average exercise price Balance, August 31, 2024 and 2025 200,000 $1.10 Expired (60,000) $1.39 Balance, November 30, 2025 140,000 $0.98 The following table summarizes information about the share options outstanding and exercisable at November 30, 2025: Number of options outstanding Number of options exercisable Exercise price Remaining life (years) Expiry date 20,000 20,000 $1.90 0.67 August 3, 2026 35,000 35,000 $1.50 1.04 December 16, 2026 85,000 85,000 $0.55 2.04 December 15, 2027 140,000 140,000 $0.98 1.60 (e) Warrants A summary of changes in the Company’s warrants is as follows: Number of warrants Weighted average exercise price Balance, August 31, 2024, 2025 and November 30, 2025 8,589,546 $0.22 ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 12 9. Share Capital (continued…) (e) Warrants (continued…) The following table summarizes information about the warrants outstanding and exercisable at November, 2025 Number of warrants outstanding Number of warrants exercisable Exercise price Remaining life (years) Expiry date 300,000 (i) 300,000 $0.50 0.08 December 29, 2025 281,250 (i) 281,250 $0.50 0.15 January 25, 2026 2,998,300 2,998,300 $0.20 0.67 August 2, 2026 5,009,996 5,009,996 $0.20 0.67 August 2, 2026 8,589,546 8,589,546 $0.22 0.63 (1) Subsequently expired (f) Restricted share units The Company did not grant any restricted share units during the period ended November 30, 2025 or the year ended August 31, 2025. A summary of changes in the Company’s RSUs is as follows: Number of RSUs Balance, August 31, 2024 216,000 Exercised (144,000) Expired (72,000) Balance, August 31, 2025 and November 30, 2025 - As at November 30, 2025, the Company did not have RSUs outstanding. ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 13 10. Related Party Disclosures Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company. The Company has determined that its key man --- agement personnel are the members of the Company’s current and former Board of Directors and its executive officers. During the periods ended November 30, 2025 and 2024 the Company entered into the following transactions with key management personnel: November 30, 2025 November 30, 2024 Executive compensation - CEO $ 12,000 $ 21,000 Executive compensation - CFO 10,500 15,000 $ 22,500 $ 36,000 On May 31, 2024, the Company entered into agreements with certain vendors, to transfer $220,222 of amounts owing to them from accounts payable, to long-term loans. The loans mature on May 31, 2026, and are non-interest bearing. Of the loans payable at November 30, 2025, $117,606 (August 31, 2025, $113,579) are due to directors and officers of the Company. (Note 8). Included in accounts payable as at November 30, 2025 $59,775 (August 31, 2025 -$47,775) owed to directors, officers, and former directors and officers of the Company. 11. Financial Instruments Fair values Financial instruments are classified into one of the following categorised: fair value through profit and loss (“FVTPL”); amortized cost; and fair value through other comprehensive income (“FVTOCI”). The carrying value of the Company’s financial instruments are classified into the following categories: Financial Instrument Category November 30, 2025 August 31, 2025 Cash FVTPL $ 112,023 $ 181,230 Accounts payable and accrued liabilities Amortized cost $ 279,653 $ 298,219 Loans Amortized cost $ 200,737 $ 193,863 Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy based on the degree to which the inputs used to determine the fair value are observable. The three levels of the fair value hierarchy are: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions occur in sufficient frequency and value to provide pricing information on an ongoing basis. Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1. Prices in Level 2 are either directly or indirectly observable as of the reporting date. Level 2 valuations are based on inputs including quoted forward prices for commodities, time value and volatility factors, which can be substantially observed or corroborated in the market place. Level 3 - Valuations in this level are those with inputs for the asset or liability that are not based on observable market data. ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 14 11. Financial Instruments (continued…) Fair values (continued…) The Company’s financial instruments consist of cash, accounts payable and accrued liabilities, and loans. Cash is carried at fair value, using level 1 inputs. The fair value of accounts payable and accrued liabilities approximates their carrying amounts due to their time to maturity. The fair value of the loans would be their settlement amount of $215,722. Risk The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below: Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions. The carrying amount of cash represents the maximum credit exposure, bein --- g $112,023 at November 30, 2025. Liquidity Risk Liquidity risk is managed by ensuring sufficient financial resources are available to meet obligations associated with financial liabilities. All of the Company’s financial liabilities are classified as current and the Company has a practice of paying their outstanding payables within 30 days. As at November 30, 2025, the Company has sufficient cash on hand to cover its short-term financial liabilities. The following are the contractual maturities of the undiscounted cash flows of financial liabilities for which there are cash outflows as at November 30, 2025: Financial liability Due in 1 year Due in 2-3 years Due in 4-5 yrs Due after 5 years Total Accounts payable and accrued liabilities $ 279,653 $ - $ - $ - $ 279,653 Loans 200,737 - - - 200,737 $ 480,390 $ - $ - $ - $ 480,390 As at November 30, 2025, the Company had cash and cash equivalents of $112,023 to settle the non-discounted financial liabilities due within a year. 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. These fluctuations may be significant. (a) Interest Rate Risk Interest rate risk is the risk that the fair value or cash flows of a financial instrument will fluctuate because of changes in market interest rates. The exposure to interest rates for the Company is considered minimal. The Company has no interest bearing borrowings. (b) Foreign Currency Risk The Company is exposed to foreign currency risk on fluctuations related to cash, accounts payable and accrued liabilities that are denominated in a foreign currency. As at November 30, 2025 the Company did not have any accounts in foreign currencies and considers foreign currency risk insignificant. ROUTE 109 RESOURCES INC. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOVEMBER 30, 2025 (Expressed in Canadian Dollars) (Unaudited) 15 11. Financial Instruments (continued…) Risk (continued…) Market Risk (continued…) (c) Price Risk The Company is exposed to price risk with respect to commodity prices. The Company’s ability to raise capital to fund exploration and evaluation activities is subject to risks associated with fluctuations in the market price of commodities. 12. Capital Risk Management The Company manages, as capital, the components of shareholders’ equity. The Company’s objectives, when managing capital, are to safeguard its ability to continue as a going concern. The Company manages its capital structure, and makes adjustments to it, in light of changes in economic conditions and the risk of characteristics of the underlying assets. To maintain or adjust its capital structure, the Company may attempt to issue common shares, borrow and acquire or dispose of assets. In order to maximize ongoing exploration efforts, the Company does not pay out dividends. The Company’s policy is to invest its excess cash, if any, in highly liquid, short-term, interest bearing investments with maturities of one year or less from the date of acquisition. 13. Segmented Information The Company operates in one reportable operating segment, being exploration and evaluation of mineral properties in Canada.