SEDAR Interim Financial Statements

Unaudited Interim Condensed Consolidated Financial Statements Second Quarter Fiscal 2026 (For the three and six-month periods ended December 31, 2025 and 2024) These interim condensed consolidated financial statements have not been reviewed by the Company's independent auditors. ORBIT GARANT DRILLING INC. Interim Condensed Consolidated Statements of Earnings For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share) (Unaudited) December 31 December 31 December 31 December 31 2025 2024 2025 2024 Notes (3 months) (3 months) (6 months) (6 months) $ $ $ $ Contract revenue 18 47,980 43,419 94,644 91,854 3 41,503 36,263 82,509 77,068 Gross profit 6,477 7,156 12,135 14,786 Expenses General and administrative expenses 4,515 4,402 8,914 8,162 Foreign exchange (gain) loss (335) 743 (204) 756 Finance costs 592 804 1,198 1,564 Interest revenue on long-term receivable, net of expected credit loss 1 (433) (203) (854) 3 4,773 5,516 9,705 9,628 1,704 1,640 2,430 5,158 Income tax expense (recovery) 11 Current 338 757 510 1,906 Deferred 87 403 292 (138) 425 1,160 802 1,768 Net earnings 1,279 480 1,628 3,390 Net earnings per share 10 Basic 0.03 0.01 0.04 0.09 Diluted 0.03 0.01 0.04 0.09 Cost of contract revenue Earnings before income taxes See accompanying notes to interim condensed consolidated financial statements. Page 2 ORBIT GARANT DRILLING INC. Interim Condensed Consolidated Statements of Comprehensive Earnings For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars) (Unaudited) December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Net earnings 1,279 480 1,628 3,390 580 (145) 547 285 580 (145) 547 285 Comprehensive earnings 1,859 335 2,175 3,675 Other comprehensive (loss) earnings Other comprehensive earnings (loss) Cumulative translation adjustments See accompanying notes to interim condensed consolidated financial statements. Page 3 ORBIT GARANT DRILLING INC. Interim Condensed Consolidated Statements of Changes in Equity For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars) (Unaudited) Six-month period ended December 31, 2025 Total Accumulated other Equity-settled Retained comprehensive Shareholders' Share capital reserve earnings loss equity $ $ $ $ $ (Note 10) Balance as at July 1, 2025 59,403 1,000 10,370 (2,348) 68,425 Total comprehensive earnings Net earnings - - 1,628 - 1,628 Other comprehensive earnings Cumulative translation adjustments - - - 547 547 Other comprehensive earnings - - - 547 547 Transactions with shareholders, recorded directly in equity Share-based compensation (Note 10) - 125 - - 125 Share buyback (Note 10) (182) - - - (182) Stock options exercised (Note 10) 481 (121) - - 360 Share options cancelled (Note 10) - (3) 3 - - Total transactions with shareholders 299 1 3 - 303 Balance as at December 31, 2025 59,702 1,001 12,001 (1,801) 70,903 Six-month period ended December 31, 2024 Total Accumulated other Equity-settled Retained comprehensive Shareholders' Share capital reserve earnings loss equity $ $ $ $ $ (Note 10) Balance as at July 1, 2024 59,204 923 2,759 (2,657) 60,229 Total comprehensive earnings Net earnings - - 3,390 - 3,390 Other comprehensive earnings Cumulative translation adjustments - - - 285 285 Other comprehensive earnings - - - 285 285 Transactions with shareholders, recorded dire --- ctly in equity Share-based compensation (Note 10) - 93 - - 93 Share buyback (Note 10) (36) - - - (36) Share options cancelled (Note 10) - (74) 74 - - Total transactions with shareholders (36) 19 74 - 57 Balance as at December 31, 2024 59,168 942 6,223 (2,372) 63,961 See accompanying notes to interim condensed consolidated financial statements. Page 4 ORBIT GARANT DRILLING INC. Interim Condensed Consolidated Statements of Financial Position As at December 31, 2025 and June 30, 2025 (in thousands of Canadian dollars) (Unaudited) December 31 June 30 Notes 2025 2025 $ $ ASSETS Current assets Cash and cash equivalents 1,958 3,488 Trade and other receivables 28,465 30,622 Inventories 52,331 45,937 Income taxes receivable 780 707 Prepaid expenses 417 644 Current portion of long-term receivable 5 1,839 1,374 Current portion of net investment in finance leases 36 55 85,826 82,827 Non-current assets Investments 4 1,264 1,220 Long-term receivable 5 - 460 Net investment in finance leases - 7 Property, plant and equipment 6 38,304 35,295 Right-of-use assets 7,299 6,966 Intangible assets 479 442 Deferred tax assets 3,188 3,425 Total assets 136,360 130,642 LIABILITIES Current liabilities Trade and other payables 29,905 28,761 Income taxes payable 901 801 Current portion of long-term debt 7 1,196 1,167 Current portion of lease liabilities 8 2,326 1,748 34,328 32,477 Non-current liabilities Long-term debt 7 26,494 25,088 Lease liabilities 8 4,635 4,652 65,457 62,217 EQUITY Share capital 10 59,702 59,403 Equity-settled reserve 1,001 1,000 Retained earnings 12,001 10,370 Accumulated other comprehensive loss (1,801) (2,348) Equity attributable to shareholders 70,903 68,425 Total liabilities and equity 136,360 130,642 Contingencies and commitments (notes 13 and 14) APPROVED BY THE BOARD Daniel Maheu, Director Nicole Veilleux, Director See accompanying notes to interim condensed consolidated financial statements. Page 5 ORBIT GARANT DRILLING INC. Interim Condensed Consolidated Statements of Cash Flows For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars) (Unaudited) December 31 December 31 December 31 December 31 2025 2024 2025 2024 Notes (3 months) (3 months) (6 months) (6 months) $ $ $ $ OPERATING ACTIVITIES Earnings before income taxes 1,704 1,640 2,430 5,158 Items not affecting cash Depreciation of property, plant and equipment 2,287 2,219 4,434 4,352 Depreciation of right-of-use assets 433 281 814 492 Amortization of intangible assets 34 16 66 31 Gain on disposal of property, plant and equipment 6 (66) (118) (100) (112) Share-based compensation 10 61 49 125 93 Finance costs 592 804 1,198 1,564 5 1 (433) (203) (854) Net change in fair value of investments 4 15 330 (44) 124 5,061 4,788 8,720 10,848 Changes in non-cash operating working capital items 12 3,705 (2,423) (2,502) (4,992) Income taxes paid (215) (132) (542) (197) Finance costs paid (562) (771) (1,141) (1,483) 7,989 1,462 4,535 4,176 INVESTING ACTIVITIES Collection of long-term receivable 5 107 252 212 737 Collection of net investment in finance leases 14 19 26 19 Acquisition of property, plant and equipment 6 (3,076) (4,906) (6,723) (7,117) Proceeds from disposal of property, plant and equipment 6 89 367 203 424 Acquisition of intangible assets (77) (9) (101) (18) (2,943) (4,277) (6,383) (5,955) FINANCING ACTIVITIES Proceeds from factoring 4,336 4,449 5,648 7,091 Repayment on factoring (4,336) (2,289) (5,648) (4,936) Proceeds from long-term debt --- 26,678 36,395 62,836 61,495 Repayment of long-term debt (30,278) (36,261) (61,428) (61,873) Repayment of lease liabilities (478) (337) (969) (652) Financing fees paid (157) (9) (157) (22) Proceeds from stock options exercised 215 - 360 - Repurchase of common shares 10 (182) (36) (182) (36) (4,202) 1,912 460 1,067 Effect of exchange rate changes on cash and cash equivalents (304) 619 (142) 908 Increase (decrease) in cash and cash equivalents 540 (284) (1,530) 196 Cash and cash equivalents, beginning of the period 1,418 812 3,488 332 Cash and cash equivalents, end of the period 1,958 528 1,958 528 Interest revenue on long-term receivable, net of expected credit loss See accompanying notes to interim condensed consolidated financial statements. Page 6 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 1. DESCRIPTION OF BUSINESS % of voting rights Orbit Garant Drilling Services Inc. 100% Drift Exploration Drilling Inc. 100% Drift de Mexico SA de CV 100% Orbit Garant Chile S.A. 100% Orbit Garant Drilling Ghana Limited 100% Perforación Orbit Garant Peru S.A.C. 100% OGD Drilling (Guyana) Inc. 100% Forage Orbit Garant BF S.A.S. 100% Forage Orbit Garant Guinée SARLU 100% Sarliaq-Orbit Garant Inc. 49% 2. Basis of presentation Orbit Garant Drilling Inc. (the "Company"), incorporated under the Canada Business Corporations Act , mainly operates a surface and underground diamond drilling business. The Company has operations in Canada and South America. The Company's head office is located at 3200, boul. Jean-Jacques Cossette, Val-d'Or (Québec), Canada. The Company holds interests in several entities. The percentage of voting rights in its subsidiaries and its associates is as follows: These interim condensed consolidated financial statements were approved for issue by the Board of Directors of Orbit Garant Drilling Inc. on February 11, 2026. These interim condensed consolidated financial statements have been prepared on a historical cost basis except for the investments, which are measured at fair value, and share-based compensation which is measured in accordance with IFRS 2, Share-Based Payment . They are presented in Canadian dollars, which is the currency of the primary economic environment in which the Company operates ("functional currency"). All values are rounded to the nearest thousand dollars, except where otherwise indicated. The preparation of interim condensed consolidated financial statements in conformity with IAS 34 requires the use of certain critical accounting estimates, assumptions and judgments. It also requires Management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant are disclosed in Note 4 in the Company's annual audited consolidated financial statements for the year ended June 30, 2025. They remained unchanged for the three and six-month periods ended December 31, 2025. These interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting , ("IAS 34"). The IFRS accounting policies that are set out in Note 3 to the Company's annual audited consolidated financial statements for the year ended June 30, 2025 were consis --- tently applied to all periods presented. These interim condensed consolidated financial statements have not been subject to a review engagement by the Company's independent auditors. BASIS OF PREPARATION These interim condensed consolidated financial statements do not include all of the information required for annual financial statements and should be read in conjunction with the Company's 2025 annual audited consolidated financial statements. Page 7 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 2. Principles of consolidation 3. EXPENSES BY NATURE December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Cost of contract revenue 2,475 2,296 4,768 4,437 General and administrative expenses 279 220 546 438 Total depreciation and amortization 2,754 2,516 5,314 4,875 December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Depreciation and amortization 2,754 2,516 5,314 4,875 Employee benefits expense 25,152 22,414 49,265 45,669 Cost of inventories 8,258 10,694 18,164 21,855 Lease expenses (a) 3,613 2,855 6,807 5,640 Interest on long-term debt 438 602 909 1,296 Interest on lease liabilities 126 72 249 128 Factoring charges and other interest 29 130 40 140 Other expenses 5,906 2,496 11,466 7,093 Total cost of contract revenue and expenses 46,276 41,779 92,214 86,696 Cost of contract revenue 41,503 36,263 82,509 77,068 Other expenses 4,773 5,516 9,705 9,628 Total cost of contract revenue and expenses 46,276 41,779 92,214 86,696 (a) Income and expenses of subsidiaries acquired or disposed of during the year are included in the interim condensed consolidated statement of earnings from the effective date of acquisition to the effective date of disposal, as appropriate. Intercompany transactions and balances are eliminated on consolidation. The interim condensed consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company. A subsidiary is an entity controlled by the Company. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee, independently of its percentage of participation. The existence and effect of potential voting rights are considered when the Company controls another entity. BASIS OF PREPARATION (continued) Detail of the depreciation and amortization expenses The depreciation expense of property, plant and equipment, depreciation of right-of-use assets and the amortization expense of intangible assets have been charged to the interim condensed consolidated statements of earnings as follows: This amount consists of lease payments related with short-term lease agreements. No sublease payments or contingent rent payments were made or received. No sublease income is expected as all assets held under lease agreements are used exclusively by the Company. Principal expenses by nature Cost of contract revenue, general and administrative expenses, foreign exchange (gain) loss and finance costs by nature are as follows: Page 8 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements --- For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 4. INVESTMENTS Six-month period ended Year ended December 31, 2025 June 30, 2025 $ $ Investments in public companies, beginning of the year 1,220 1,411 Change in fair value of investments measured at fair value through profit or loss 44 (191) Investments in public companies, end of the period 1,264 1,220 5. LONG-TERM RECEIVABLE Six-month period ended Year ended December 31, 2025 June 30, 2025 $ $ Long-term receivable, beginning of the year 1,834 2,244 Interest revenue 423 1,301 Collection of long-term receivable including related interest revenue (212) (1,710) Expected credit loss on long-term receivable (220) - Foreign exchange differences 14 (1) 1,839 1,834 Current portion 1,839 1,374 Balance, end of the period - 460 6. PROPERTY, PLANT AND EQUIPMENT December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Acquisition of property, plant and equipment 3,076 4,906 6,723 7,117 Proceeds from disposal of property, plant and equipment (89) (367) (203) (424) Gain on disposal of property, plant and equipment (66) (118) (100) (112) As at December 31, 2025, the carrying value of the long-term receivable before expected credit loss is $3,704 ($3,478 as at June 30, 2025) and the allowance for expected credit loss is $1,865 ($1,644 as at June 30, 2025). As at December 31, 2025, the long-term receivable past due is $1,371 including interest ($463 as at June 30, 2025). The gain on disposal of property, plant and equipment is included in the cost of contract revenue. Page 9 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 7. December 31 June 30 2025 2025 $ $ 15,774 13,883 7,642 7,764 2,317 2,644 1,957 1,964 27,690 26,255 Current portion (1,196) (1,167) 26,494 25,088 LONG-TERM DEBT Revolving credit facility authorized for a maximum amount of $30,000, bearing interest at prime rate plus 0.75%, effective rate as at December 31, 2025 of 5.20% (June 30, 2025: interest at prime rate plus 0.50%, effective rate of 5.45%), maturing in December 2029, secured by a first rank hypothec on the universality of all present and future assets, except for those noted below (a) (c) Loan of CLF 33 (June 30, 2025: CLF 35), bearing interest at rates of 3.30%, payable in monthly instalments of $27 (CLF 0.43), maturing in February 2028, secured by a land and building. (e) Loan of $2,341 (US$1,708), bearing interest at rates of 8.12%, payable in monthly instalments of $57 (US$42) plus interest, maturing in May 2029, secured by a second rank hypothec on the universality of all present and future assets (d) Loan, bearing interest at 6.50%, payable in monthly instalments of $63, maturing in October 2042, secured by a first rank hypothec on a land and building (b) Page 10 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 7. (a) (b) (c) (d) (e) As at December 31, 2025, principal payments required in the next years are as follows: $ Within one year 1,196 Later than one year and --- no later than five years 20,615 Later than five years 6,248 28,059 The revolving credit facility bear interest at either (a) the bank's prime rate plus an applicable margin based on a financial covenant or (b) the banker's acceptance rate plus an applicable margin based on a financial covenant. In addition, the Corporation incurs commitment fees, varying between 0.30% to 0.75%. The rate is variable based on the quarterly calculation of a financial ratio and can vary from (a) prime rate plus 0.50% to 2.75% or (b) banker's acceptance rate plus 1.50% to 3.75%. As at December 31, 2025, an unamortized amount of $226 ($117 as at June 30, 2025), representing financing fees, has been netted against the long-term debt. This amount is being amortized to earnings over the term of the debt, using the effective interest method. As at December 31, 2025, the prime rate in Canada was 4.45% for Canadian loans (4,95% as at June 30, 2025), the prime rate in United States was 6.75% and the base rate in the United States was 7.25% for US loans (7.50% and 8.00%, respectively as at June 30, 2025). Under the terms of the long-term debt agreements, the Company must satisfy certain restrictive covenants as to minimum financial ratios (Note 9). As at December 31, 2025, the Company was compliant with its financial covenants (June 30, 2025: the Company was compliant with its financial covenants). On November 29, 2024, the Company entered into the EDC Loan Agreement, which provides for a term loan in the principal amount of US$2,000. This loan bears interest at a fixed rate of 8.12% per year, has a 4-year term and is repayable by way of 48 consecutive monthly payments from June 2025 until May 2029. The Company’s obligations under the EDC Loan Agreement are: a) secured by a second-ranking hypothec on the universality of all present and future assets; and (b) guaranteed on a solidary (joint and several) basis by certain of our subsidiaries. The Company’s long-term debt under the EDC Loan Agreement including the current portion amounted to US$1,708 ($2,341) as at December 31, 2025 (US$1,958 ($2,672) as at June 30, 2025). As at December 31, 2025, an unamortized amount of $24 ($28 as at June 30, 2025), representing financing fees, has been netted against the long-term debt. This amount is being amortized to earnings over the term of the debt, using the effective interest method. As at December 31, 2025, an unamortized amount of $14 ($17 as at June 30, 2025), representing financing fees, has been netted against the long- term debt. This amount is being amortized to earnings over the term of the debt, using the effective interest method. LONG-TERM DEBT (continued) On December 22, 2025, the Company signed the first amendment to the sixth amended and restated credit agreement with National Bank of Canada in respect of the credit facility. The credit facility, which will expire December 22, 2029, consists of a revolving credit facility in the amount of $30,000 along with a credit facility in the unused amount of US$5,000 utilized for the purposes of standby letters of credit. The US$5,000 credit facility bears interest at base rate plus 0.25%, effective rate as at December 31, 2025 of 7.50% (June 30, 2025: interest at base rate plus 0.25%, effective rate of 8.25%). In addition, the Company’s obligations under the US$5,000 credit facility are guaranteed by EDC. Availability under the credit facility is subject to a borrowing base that is determined by the value of the Company --- 's inventory, accounts receivable and real estate. As at December 31, 2025, the borrowing base for the credit facility was $30,000 and the undrawn amounts were $14,000. As at December 31, 2025, the Company had utilized nil (June 30, 2025: US$390) of this facility for standby letters of credit. On September 9, 2022, the Company entered into an additional loan agreement with the Business Development Bank of Canada (the “BDC Loan Agreement”) for a term loan in the principal amount of $8,470. The loan bears interest at a fixed rate of 6.50% per year since November 2023, has a duration of 240 consecutive monthly payments from November 2022 until October 2042.The Company's obligations under the BDC Loan Agreement are secured by a first ranking hypothec on the land and building serving as the Company's head office located in Val-d'Or. As at December 31, 2025, an unamortized amount of $105 ($108 as at June 30, 2025), representing financing fees, has been netted against the long-term debt. This amount is being amortized to earnings over the term of the debt, using the effective interest method. Page 11 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 7. Later than one As at December 31, 2025 Within but no later than Later than $000s Total one year five years five years $ $ $ $ CAN 23,747 263 17,236 6,248 US (US$1,708) 2,341 685 1,656 - Chilian UF (CLF 33) 1,971 248 1,723 - 28,059 1,196 20,615 6,248 8. December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Lease liabilities recognized, beginning of the period 6,328 3,815 6,400 2,762 Additions 975 613 1,418 1,952 Disposals - (28) (34) (28) Finance cost 126 72 249 128 Payment of lease liabilities, including related finance costs (604) (409) (1,218) (780) Variable lease payment adjustment (a) 3 3 4 5 Foreign exchange differences 133 (23) 142 4 6,961 4,043 6,961 4,043 Current portion 2,326 1,365 2,326 1,365 Balance, end of the period 4,635 2,678 4,635 2,678 (a) Lease payments required in the next years are as follows: December 31 2025 $ Within one year 2,751 Later than one year and no later than five years 4,837 Later than five years 313 7,901 Less: discounting impact (940) Present value of lease payments 6,961 The variable lease payments depend on an index or a rate. LEASE LIABILITIES Long-term debt before unamortized financing costs by currency and by term are as follows: The summary of the activity related to the lease liabilities for the three-month and six-month periods ended December 31, 2025 and 2024 is as follows: LONG-TERM DEBT (continued) Page 12 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 9. December 31 June 30 2025 2025 $ $ Long-term debt 27,690 26,255 Lease liabilities 6,961 6,400 Share capital 59,702 59,403 Equity-settled reserve 1,001 1,000 Retained earnings 12,001 10,370 Accumulated other comprehensive loss (1,801) (2,348) Cash and cash equivalents (1,958) (3,488) 103,596 97,592 The Company includes long-term debt, lease liabilities, factoring liability, share capital, equity-settled reserve, retained earnings, accumulated othe --- r comprehensive loss and cash and cash equivalents in its definition of capital. The Company's capital structure is as follows: Under the terms of certain of the Company's debt agreements, the Company must satisfy certain financial covenants, such as Senior debt to earnings before income taxes, interest, depreciation and amortization ratio, Senior debt to capitalization ratio and fixed charge coverage ratio. Such agreements also limit, among other things, the Company's ability to incur additional indebtedness, create liens, engage in mergers or acquisitions and make dividend and other payments. As at December 31, 2025, as mentioned in Note 7, the Company complied with its covenants (June 30, 2025: the Company was compliant with its financial covenants). The Company's objective when managing its capital structure is to maintain financial flexibility in order to i) preserve access to capital markets; ii) meet financial obligations; and iii) finance internally generated growth and potential new acquisitions. To manage its capital structure, the Company may adjust spending, issue new shares, issue new debt or repay existing debts. CAPITAL MANAGEMENT The Company's objectives with regards to capital management remain unchanged from the prior year. In order to facilitate the management of its capital requirements, the Company prepares annual budgets that are updated as necessary, dependent on various factors. Page 13 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 10. SHARE CAPITAL Authorized, an unlimited number of common and preferred shares: Six-month period ended Year ended Number of Number of Common shares shares $ shares $ Balance, beginning of the period 37,579,840 59,403 37,372,756 59,204 Movement in share capital: Share buybacks (a) (141,450) (182) (68,916) (56) Stock options exercised 441,999 481 276,000 255 Balance, end of the period 37,880,389 59,702 37,579,840 59,403 (a) Net earnings per share December 31 December 31 December 31 December 31 2025 2024 2025 2024 Net earnings per share - basic (3 months) (3 months) (6 months) (6 months) shareholders 1,279 $ 480 $ 1,628 $ 3,390 $ common shares outstanding 37,914,063 37,372,275 37,799,312 37,372,515 Net earnings per share - basic 0.03 $ 0.01 $ 0.04 $ 0.09 $ December 31 December 31 December 31 December 31 2025 2024 2025 2024 Net earnings per share - diluted (3 months) (3 months) (6 months) (6 months) shareholders 1,279 $ 480 $ 1,628 $ 3,390 $ common shares outstanding 37,914,063 37,372,275 37,799,312 37,372,515 share - stock options 949,090 347,316 1,038,620 258,373 38,863,153 37,719,591 38,837,932 37,630,888 common shares outstanding Net earnings per share - diluted 0.03 $ 0.01 $ 0.04 $ 0.09 $ During the current fiscal year, the Company renewed its Normal Course Issuer Bid ("NCIB"), ending October 30, 2026. For the three and six months ended December 31, 2025, the Company repurchased and cancelled 141,450 common shares at a cost of $182 and an average price of $1.29 per share. Common shares, participating and voting, without nominal or par value Preferred shares rights, privileges, restrictions and conditions must be adopted before their issuance by a resolution of the Board of Directors of the Company. June 30, 2025 Weighted average basic number of Diluted net earnings per common share was --- calculated based on net earnings divided by the average number of common shares outstanding using the treasury shares method. December 31, 2025 Net earnings per share - basic Adjustment to average number of common Weighted average basic number of Weighted average diluted number of Net earnings attributable to common Page 14 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 10. SHARE CAPITAL (continued) December 31, 2025 December 31, 2024 Number Weighted average Number Weighted average of options exercise price of options exercise price $ $ Outstanding at the beginning of the period 2,153,000 0.73 2,190,000 0.72 Granted during the period 545,000 1.32 530,000 0.83 Exercised during the period (a) (441,999) 0.81 - - Cancelled during the period (92,001) 1.00 (291,000) 0.90 Outstanding at end of the period 2,164,000 0.85 2,429,000 0.72 Exercisable at end of the period 1,099,002 0.69 1,282,326 0.75 (a) The following table summarizes information on stock options outstanding as at December 31, 2025: Range of Outstanding at Weighted average Weighted average Exercisable at Weighted average exercise price December 31, 2025 remaining life exercise price December 31, 2025 exercise price $ (years) $ $ 0.50 - 0.99 1,453,000 2.99 0.65 893,002 0.60 1.00 - 1.49 711,000 3.63 1.25 206,000 1.08 2,164,000 1,099,002 Granted Granted in 2026 in 2025 Risk-free interest rate 2.73% 3.04% Expected life (years) 3 3 Expected volatility (based on historical volatility) 52.88% 62.02% Expected dividend yield 0% 0% Fair value of options granted 0.81 $ 0.54 $ December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ 61 49 125 93 All stock options outstanding are granted to directors, officers and employees. Details regarding the stock options outstanding are as follows: During the periods mentioned below, the total expense related to share-based compensation to employees and directors has been recorded and presented in general and administrative expenses as follows: (6 months) (6 months) The Company's calculations of the fair value of options granted were made using the Black-Scholes option-pricing model. The following table summarizes the grant date fair value calculations with weighted average assumptions: For the six-month periods ended December 31, 2025, the weighted average market share price at the date of exercise was $1.41. Expense related to share-based compensation Page 15 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 11. INCOME TAXES December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ 1,704 1,640 2,430 5,158 Statutory rates 26.50% 26.50% 26.50% 26.50% Income taxes based on statutory rates 452 435 644 1,367 Non-deductible expenses and other permanent differences 111 300 125 378 Non-deductible share-based compensation expense 16 13 33 25 Difference of income tax rates between territories (11) 2 3 (11) Withholding taxes 3 6 6 9 Income tax assets unrecognized - 323 74 177 Recognition of previously unrecognized deductible temporary differences and --- tax losses of prior periods (163) (132) (72) (383) Non-taxable portion of capital gains 9 (85) (10) (92) Prior years adjustments 6 296 (3) 296 Other 2 2 2 2 Total income tax expense 425 1,160 802 1,768 12. ADDITIONAL INFORMATION RELATING TO THE STATEMENTS OF CASH FLOWS December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Trade and other receivables 7,211 (472) 2,607 (3,783) Inventories (1,965) (630) (6,098) (3,022) Prepaid expenses 54 111 228 323 Trade and other payables (1,595) (1,432) 761 1,490 3,705 (2,423) (2,502) (4,992) Earnings before income taxes to the following: Increase (decrease) of income taxes due Changes in non-cash operating working capital items: Page 16 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 13. CONTINGENCIES 14. COMMITMENTS AND GUARANTEES Commitments The Company is subject to various claims that arise in the normal course of business. Management believes that adequate provisions have been made in the accounts where appropriate. Although it is not possible to estimate the extent of potential costs and losses, if any, management believes that the ultimate resolution of such contingencies will not have a material adverse effect on the financial position of the Company. The Company has entered into short-term and low asset value lease agreements expiring between 2026 and 2028, which call for total lease payments of $385 for the rental of offices. None of the lease agreements contain renewal or purchase options or escalation clauses or any restrictions.The lease payments under these lease agreements for the next two years amount to $343 for 2026, $37 for 2027 and $5 for 2028. As at December 31, 2025, the Company issued some bank guarantees in favor of customers for a total amount of $6,599 (June 30, 2025: $5,836), maturing between January 2026 and October 2026. For the six-month periods ended December 31, 2025 and 2024, the Company has not made any payments in connection with these guarantees. Guarantees Page 17 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 15. RELATED AND ASSOCIATE PARTY TRANSACTIONS Transactions with related parties December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Revenues 44 37 85 84 Expenses 6 8 35 12 Transactions with associate parties December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Revenues 8,753 6,990 17,870 15,649 As at December 31, 2025, an amount of $8 was receivable resulting from these transactions (June 30, 2025: $8). The Company entered into the following transactions with Sarliaq-Orbit Garant Inc.: All of these related and associate parties transactions made in the normal course of business were measured at the exchange amount, which is the amount established and agreed to by the parties. As at December 31, 2025, the investment in an associate totaled nil in the interim condensed consolidated statements of financial position (June 30, 2025: nil). In addition, for the six-month period --- ended December 31, 2025, repayments of a lease liability totalling $66 were made to Dynamitage Castonguay Ltd. (December 31, 2024: $48). The Company entered into the following transactions with its related companies and with persons related to directors: The Company is related to Dynamitage Castonguay Ltd., a company in which a director has an interest. As at December 31, 2025, trade and other receivables included an amount receivable of $815 from one of the Company's associates (June 30, 2025: $2,706). Page 18 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 16. KEY MANAGEMENT COMPENSATION December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Salaries and fees 336 248 654 475 Share-based compensation 50 36 94 68 386 284 748 543 17. FINANCIAL INSTRUMENTS Fair value The fair value of cash and cash equivalents, trade and other receivables, trade and other payables and factoring liability is approximately equal to their carrying values due to their short-term maturity. The compensation recognized for the key management remuneration and director's fees is analyzed as follows : The definition of key management includes the close members of the family of key personnel and any entity over which key management exercises control. The key management personnel have been identified as directors of the Company and key management staff. Close members of the family are those family members who may be expected to influence, or be influenced by that individual in their dealings with the Company. The fair value of the long-term receivable is determined using an evaluation of the estimated market value using a discount rate, adjusted for the customer's own credit risk, that reflects current market conditions. The Company is exposed to various risks related to its financial assets and liabilities. There have been no substantive changes in the Company’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks, or the methods used to measure them, from previous years, unless otherwise stated in this note. The fair value of the long-term debt is determined using an evaluation of the estimated market value using a discount rate, adjusted for the Company’s own credit risk, that reflects current market conditions. Page 19 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 17. FINANCIAL INSTRUMENTS (continued) Level Basis for determination of fair value Level 1 Level 2 Level 3 As at December 31, 2025 Carrying value Fair value Level 1 Level 2 Level 3 $ $ $ $ $ Financial assets measured at amortized cost Cash and cash equivalents 1,958 1,958 Trade and other receivables 28,465 28,465 Long-term receivable 1,839 1,839 Financial assets measured at fair value Investments 1,264 1,264 1,264 - - Financial liabilities measured at amortized cost Trade and other payables 29,905 29,905 Long-term debt 27,690 28,323 - 28,323 - As at June 30, 2025 Carrying value Fair value Level 1 Level 2 Level 3 $ $ $ $ $ Financial assets measured at amortized cost Cash and cash equivalents 3,488 3 --- ,488 Trade and other receivables 30,622 30,622 Long-term receivable 1,834 1,834 Financial assets measured at fair value Investments 1,220 1,220 1,220 - - Financial liabilities measured at amortized cost Trade and other payables 28,761 28,761 Long-term debt 26,255 26,578 - 26,578 - There were no transfers of amounts between Level 1, Level 2 and Level 3 financial instruments for the three and six-month periods ended December 31, 2025. The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value. As at December 31, 2025, the investments are measured at fair value and are classified as a Level 1 financial instrument as the fair value is determined using quoted prices in the active markets. Fair value hierarchy The methodology used to measure the Company's financial instruments accounted for at fair value is determined based on the following hierarchy: Inputs for the asset or liability that are not based on observable market Quoted prices in active markets for identical assets or liabilities. Inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability. Page 20 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 18. SEGMENTED INFORMATION December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) Contract revenue $ $ $ $ Canada 33,815 30,787 67,517 66,172 International (1) 14,165 12,632 27,127 25,682 47,980 43,419 94,644 91,854 Earnings from operations Canada 1,762 1,217 3,432 3,612 International 1,040 2,628 1,560 4,650 2,802 3,845 4,992 8,262 General and corporate expenses (2) 505 1,834 1,567 2,394 Finance costs 592 804 1,198 1,564 Interest revenue on long-term receivable, net of expected credit loss 1 (433) (203) (854) Income tax expense 425 1,160 802 1,768 1,523 3,365 3,364 4,872 Net earnings 1,279 480 1,628 3,390 (1) Chilean revenue : 11,500 10,486 23,080 21,089 (2) December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) Depreciation and amortization $ $ $ $ Canada 1,885 1,951 3,657 3,821 International 590 345 1,111 616 Total depreciation and amortization included in 2,475 2,296 4,768 4,437 earnings from operations Unallocated and corporate assets 279 220 546 438 Total depreciation and amortization 2,754 2,516 5,314 4,875 General and corporate expenses include expenses for corporate offices, share options, foreign exchange (gain) loss and certain unallocated costs. The International operating segment included Data relating to each of the Company's reportable operating segments are presented as follows: Operational sectors are presented using the same criteria as for the production of the internal report to the chief operating decision maker, who allocates the resources and evaluates the performance of the operational sectors. The chief operating decision maker is considered to be the President and Chief Executive Officer, who evaluates the performance of both segments by the revenues of ordinary activities from external clients and earnings from operations. The Company is separated into two geograph --- ical reportable segments: Canada and International (US, Central and South America and West Africa). The elements of the results and the financial situation are divided between the segments, based on the destination of contracts or profits. Data by geographical areas follow the same accounting rules as those used for the consolidated accounts. Transfers between segments are carried out at market prices. Page 21 ORBIT GARANT DRILLING INC. Notes to Interim Condensed Consolidated Financial Statements For the three and six-month periods ended December 31, 2025 and 2024 (in thousands of Canadian dollars, except for data per share and option data) (Unaudited) 18. SEGMENTED INFORMATION (continued) As at As at December 31, 2025 June 30, 2025 $ $ Identifiable assets Canada 93,926 90,849 Chile 34,466 32,598 International - Other 7,968 7,195 136,360 130,642 Property, plant and equipment Canada 26,705 25,723 Chile 10,840 9,454 International - Other 759 118 38,304 35,295 Right-of-use assets Canada 3,486 3,824 Chile 3,653 2,957 International - Other 160 185 7,299 6,966 Intangible assets Canada 445 413 Chile 34 29 479 442 December 31 December 31 December 31 December 31 2025 2024 2025 2024 (3 months) (3 months) (6 months) (6 months) $ $ $ $ Non-current assets acquisitions Canada 1,877 1,042 4,522 3,348 International 2,110 4,319 2,878 5,554 Unallocated and corporate assets 141 167 842 185 4,128 5,528 8,242 9,087 Page 22