SEDAR Interim Financial Statements

E-POWER RESOURCES INC. INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 TABLE OF CONTENTS Page Statements of financial position 2 Statements of loss and comprehensive loss 3 Statements of changes in equity 4 Statements of cash flows 5 Notes to financial statements, including the summary of significant 6 - 21 accounting policies and other explanatory information E-POWER RESOURCES INC. INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND AS AT THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 2 Note December 31, 2025 December 31, 2024 September 30, 2025 (Audited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 99,588 $ 244,392 $ 319,110 Receivables 4 98,484 55,785 77,149 Prepaids 75,884 41,686 52,066 Marketable securities 5 2,100 16,840 6,555 276,056 358,703 454,880 Exploration and evaluation assets 6 1,709,715 1,435,363 1,638,430 TOTAL ASSETS $ 1,985,771 $ 1,794,066 $ 2,093,310 LIABILITY CURRENT LIABILITY Accounts payable and accrued liabilities 11 Flow-through premium liability 7 $ 263,304 - $ 230,559 180,250 $ 316,697 - 263,304 410,809 316,697 SHAREHOLDERS’ EQUITY Share capital 7 Subscriptions receivable 7 Options reserve 7 Warrants reserve 7 Deficit 6,621,867 - 108,019 243,028 (5,250,447) 5,445,020 (17,000) 104,238 320,393 (4,469,393) 6,531,243 - 103,543 243,028 (5,101,201) 1,722,467 1,383,257 1,776,613 TOTAL LIABILITY AND SHAREHOLDERS’ EQUITY $ 1,985,771 $ 1,794,066 $ 2,093,310 See accompanying notes to these financial statements Nature of Business and Going Concern (Note 1) Subsequent Events (Note 14) Signed on behalf of directors, Jamie Lavigne , Director Michael Danielsson , Director E-POWER RESOURCES INC. INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND AS AT THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 3 Note December 31, 2025 (3 months) Q1 2026 December 31, 2024 (3 months) Q1 2025 September 30, 2025 (12 months) Audited EXPENSES Foreign exchange loss $ - $ - $ 35 General exploration expenses (recovery) - 16,034 33,598 Listing and filing fees 12,560 8,795 29,095 Management and consulting fees 11 56,000 219,854 489,815 Investor relations 30,461 22,000 165,256 Office, taxes, permits, advertising, bank fees, postage, IT web and communications 12,497 8,737 14,559 Professional fees 29,823 12,146 188,749 Share-based payments Travel - 3,881 6,469 437 5,774 3,954 (145,222) (294,472) (930,835) OTHER ITEMS Gain on settlement of debts with shares Flow-through premium recovery income Interest income - 430 - - - (56,755) 31,250 1,456 Unrealized gain (loss) on marketable securities 5 (4,455) 9,856 (429) Write-off of accounts payable 6 - - 38,889 (4,025) 9,856 14,411 NET LOSS AND COMPREHENSIVE LOSS $ (149,246) $ (284,616) $ (916,424) Basic and diluted loss per share $ (0.002) $ (0.006) $ (0.02) Weighted average number of common shares outstanding 72,227,438 48,367,824 58,292,885 See accompanying notes to these financial statements E-POWER RESOURCES INC. INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 4 Share capital Number of shares Amount $ Subscriptions receivable $ Options reserve $ Warrants reserve $ Deficit $ Total $ Balance, September 3 --- 0, 2024 40,840,759 5,142,960 -17,000 97,769 107,089 - 4,184,777 1,146,041 Shares issued for private placements 23,680,740 1,153,633 - - 86,279 - 1,239,912 Shares issued for debts settlement 6,461,783 307,675 - - 22,035 - 329,710 Shares issued for services 198,425 12,600 - - - - 12,600 Shares cancelled -283,334 -17,000 17000 - - - - Share issue costs 192,000 -68,625 - - 27,625 - -41,000 Share-based payments - - - 5,774 - - 5,774 Net loss and comprehensive loss - - - - - -916,424 -916,424 Balance, September 30, 2025 71,090,373 6,531,243 - 103,543 243,028 - 5,101,201 1,776,613 Shares issued for private placements - - - - - - - Shares issued for debts settlement 1,585,200 95,100 - - - - 95,100 Shares issued for exploration and - - - - - - - evaluation assets - - - - - - - Flow-through premium liability - - - - - - - Share issue costs - -4,476 - 4,476 - - Share-based payments - - - - - - - Net loss and comprehensive loss - - - - - -149,246 -149,246 Balance, September 30, 2025 72,675,573 6,621,867 - 108,019 243,028 - 5,250,447 1,722,467 See accompanying notes to these financial statements E-POWER RESOURCES INC. INTERIM STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 5 December 31, 2025 (3 months) Q1 2026 December 31, 2024 (3 months) Q1 2025 September 30, 2025 (12 months) Audited CASH FLOWS FOR OPERATING ACTIVITIES Net loss for the year $ (149,246) $ (284,616) $ (916,424) Adjustments for non-cash item: Flow-through premium recovery income Share-based payments Gain on settlement of debts with shares Impairment of exploration and evaluation assets - 6,469 (31,250) 5,774 56,755 - Services received in exchange of share issuance Write-off of accounts payable 95,100 12,600 (38,889) Unrealized loss (gain) on marketable securities 4,455 (9,856) 429 Net change in non-cash working capital accounts Decrease (increase) in receivables (21,335) (8,890) (30,254) Decrease (increase) in prepaids (23,818) (15,530) (25,910) Increase (decrease) in payables (53,393) 22,482 273,368 Net cash used in operating activities (148,237) (289,941) (693,801) CASH FLOWS USED IN INVESTING ACTIVITIES Exploration and evaluation assets, net (71,285) (5,148) (204,882) Net cash used in investing activities (71,285) (5,148) (204,882) CASH FLOWS FROM FINANCING ACTIVITIES Shares issued for cash (net) - 520,600 1,198,912 Net cash provided by financing activities - 520,600 1,198,912 Increase (decrease) in cash during the year (219,522) 225,511 300,229 CASH, BEGINNING OF YEAR 319,110 18,881 18,881 CASH, END OF YEAR $ 99,588 $ 244,392 $ 319,110 Interest paid - - - Income taxes paid - - - Exploration and evaluation expenses included in accounts payable $ 11,771 $ 30,820 $ 3,333 See accompanying notes to these financial statements E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 6 1. REPORTING ENTITY AND GOING CONCERN Reporting E-Power Resources inc. (the "Company") was incorporated on October 18, 2018. The corporate office is located at Suite 400, 3 Place Ville-Marie, Montreal, Quebec, Canada. Effective January 16, 2023, the Company trades on the Canadian Securities Exchange (the “CSE”) under the symbol EPR. The principal business activity of the Company is the exploration for mineral resources in the province of Quebec, Canada. Ex --- ploration activities consist of searching for resources suitable for commercial exploitation by researching and analyzing an area's historic exploration data, by conducting topographical, geological, geochemical and geophysical studies, and by exploratory drilling, trenching and sampling. The Company's financial statements for the three months ended December 31, 2025 were issued and approved by the Board of Directors on February 18, 2026. Going Concern These financial statements have been prepared using the accounting principles applicable to a going concern, which assumes the Company’s ability to continue in operation for the foreseeable future and to realize its assets and discharge its liabilities in the normal course of operations. There are several adverse conditions that may cast substantial doubt upon the Company’s ability to continue as a going concern. The Company has incurred operating losses, has no source of revenue, is unable to self-finance operations other than by the issuance of share capital, and has significant on-going cash requirements to meet its operating expenses and maintain its mineral interests. The Company’s ability to continue as a going concern is dependent upon its ability in the future to achieve profitable operations and, in the meantime, to obtain the necessary financing to meet its obligations and repay its liabilities when they become due. External financing, predominantly by the issuance of equity to the public, will be sought to finance the operations of the Company. As a result, there exists material uncertainty which raises significant doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that might be necessary should the Company be unable to continue in business. 2. BASIS OF PREPARATION (a) Statement of compliance The Company’s financial statements for the three months ended December 31, 2025 and 2024 are prepared in accordance with the IAS 34, Interim Financial Reporting, using accounting policies consistent with the International Financial Reporting Standards (''IFRS'') as issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee ("IFRIC") on a basis consistent with those accounting policies followed in the most recent audited financial statements. The financial statements are prepared in Canadian dollars being the functional currency of the Company. The Company’s financial statements for the financial years ended September 30, 2025 are prepared in Canadian dollars, being the functional currency of the Company, in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee ("IFRIC"). E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 7 (b) Use of Estimates and Judgments The preparation of financial statements in compliance with IFRS requires management to make certain judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the re --- porting period. Actual results may differ from these estimates and assumptions. The estimates and associated assumptions are based on management's experience and other factors that are believed to be reasonable under the circumstances, the results of which is the basis of making the judgments about carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are continuously evaluated and reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the revision affects both current and future periods. Significant areas requiring the use of management estimates include amounts of provisions, if any, for impairment of exploration and evaluation assets, reclamation and environmental obligations and deferred income taxes reported in the notes to the financial statements. Significant areas requiring the use of management judgments include recognition of impairment of exploration and evaluation assets, reclamation and environmental obligations, deferred income taxes, classification of financial instruments and assessment of the going concern assumption reported in the notes to the financial statements. (c) Basis of Measurement These financial statements have been prepared on an accrual basis and are based on historical cost. (d) Presentation and Functional Currency These financial statements are presented in Canadian dollars, which is also the functional currency of the Company. 3. MATERIAL ACCOUNTING POLICIES Standards, amendments and interpretations issued but not yet effective Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by the Company are as follows: IFRS 18 Presentation and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in the Financial Statements. IFRS 18 will replace IAS 1 Presentation of Financial Statements but carries forward many of the requirements from IAS 1. The standard introduces new defined subtotals to be presented in the Company’s statements of loss and comprehensive loss, disclosure of any management-defined performance measures related to the statements of loss and comprehensive loss and requirements for grouping of information. IFRS 18 is effective for annual periods beginning on or after January 1, 2027, with earlier adoption permitted, and will apply retrospectively. The Company is currently in the process of assessing the impact of IFRS 18 (and applicable amendments to other standards) on the financial statements and notes to the financial statements. E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 8 IFRS 9 Financial Statements and IFRS 7 Financial Instruments: Disclosures In May 2024, the IASB issued Amendments to the Classification and Measurement of Financial Instruments. The amendments clarify that a financial liability is derecognized on the settlement date and introduce an accounting policy choice to derecognize a financial liability settled using an electronic payment system before the settlement date. Other clarifications include guidance on the classification of financial assets with ESG-linked features, --- non-recourse loans and contractually linked instruments. The amendments are effective for annual periods beginning on or after January 1, 2026. Early adoption is permitted, with an option to early adopt only the amendments to the classification of financial assets (for contingent features.) The Company is currently in the process of assessing the impact of the amendments on the financial statements and notes to the financial statements. Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have a significant impact on the Company’s financial statements. Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held with financial institutions and other short- term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and subject to an insignificant risk of change in value. Exploration and evaluation assets Exploration expenses and mining fees of administrative nature are expensed as incurred. Exploration expenditures are capitalized until an economic feasibility study has established that there is no proven and probable reserves leading to the development of the project, at which time exploration and development expenditures incurred are expensed. Costs incurred relating to the acquisition and claim maintenance of mineral properties, including option payments and annual fees to maintain the project in good standing, are capitalized and deferred by project until the project to which they relate is sold, abandoned, impaired or placed into production. The Company assesses its capitalized mineral project costs for indications of impairment on a regular basis and when events and circumstances indicate a risk of impairment. A project is written down or written off when the Company determines that an impairment of value has occurred or when exploration results indicate that no further work is warranted. 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, or title may be affected by undetected defects. Furthermore, unknown and unpredictable climate-related matters may impair the exploration and evaluation assets and cause them to be obsolete, which would require a reduction in their carrying value. Since inception, no climate-related or other adverse conditions have caused the Exploration and evaluation capitalized costs to require a write-down. Mining tax credits and duties credits for losses Mining exploration tax credits for certain exploration expenditures in Quebec are accounted for on the same basis as the related assets, that is as a reduction of the capitalized exploration costs when there is reasonable assurance that the credits are realized. E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 9 Claims and environmental obligations The Company recognizes liabilities for statutory, contractual or legal obligations associated with the reclamation of exploration and evaluation assets, when those obligations result from the acquisition, construction, development or normal operation of the assets. The Company --- records the present value of the estimated costs of legal and constructive obligations required to restore the exploration sites in the period in which the obligation is incurred. Upon initial recognition of the liability, the corresponding asset retirement cost is added to the carrying amount of the related asset and the cost is amortized as an expense over the economic life of the asset using either the unit-of-production method or the straight-line method, as appropriate. Following the initial recognition of the asset retirement obligation, the carrying amount of the liability is increased for the passage of time and adjusted for changes to the amount or timing of the underlying cash flows needed to settle the obligation. As at December 31, 2025, the Company has no asset retirement obligations and accordingly, has not recorded an asset retirement obligation in the financial statements. Impairment of non-financial assets At the end of each reporting period the carrying amount of non-financial assets are reviewed to determine whether there is any indication that those assets are impaired. Impairment is recognized when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. The impairment loss is recognized in profit or loss for the period. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount had no impairment loss been recognized. A reversal of an impairment loss is recognized immediately in profit or loss. Income taxes Income tax expense comprises current and deferred taxes. Current and deferred taxes are recognized on profit or loss except to the extent that they relate to a business combination or items recognized directly in equity or in other comprehensive income/loss. Current income taxes are recognized for the estimated income taxes payable or receivable on taxable income or loss for the current year and any adjustment to income taxes payable in respect of previous years. They are determined using tax rates and tax laws that have been enacted or substantively enacted by the year-end date. Since inception, the Company has not incurred any current income tax expense payable. Deferred tax assets and liabilities are recognized where the carrying amount of an asset or liability differs from its tax base, except for taxable temporary differences arising on the initial recognition of goodwill and temporary differences arising on the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction affects neither accounting nor taxable profit or loss. Recognition of deferred tax assets for unused tax losses, tax credits and deductible temporary differences is restricted to those instances where it is probable that future taxable profit will be available against which the deferred tax asset can be utilized. At the end of each reporting period the Company reassesses recognized and unrecognized deferred tax assets. The Company recognizes a previously unrecognized deferred tax asset to the extent that it has become probable that future taxable profit will allo --- w the deferred tax asset to be recovered. Since inception, the Company has not recorded any tax asset arising from their timing differences or from the application of the tax losses against future taxable income. E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 10 Earnings (loss) per common share Basic earnings/loss per share is computed by dividing the net income or loss applicable to common shares of the Company by the weighted average number of common shares outstanding for the relevant period. Diluted earnings/loss per common share is computed by dividing the net income or loss applicable to common shares by the sum of the weighted average number of common shares issued and outstanding and all additional common shares that would have been outstanding, if potentially dilutive instruments were converted. Financial instruments Financial assets The Company initially measures its financial assets at fair value, except for certain related party transactions that are measured at the carrying or exchanged amount as appropriate. For subsequent measurement, there are two measurement categories into which the Company classifies its financial assets: (a) Amortized cost: Assets that are held for collection of contractual cash flows where they represent solely payments of principal and interest are measured at amortized cost. The Company's cash and receivables are classified at amortized cost. (b) Fair value through profit or loss (FVTPL): Assets that do not meet the criteria of amortized cost are the marketable securities in the investment portfolio. A gain or loss arising from a change in their fair value are classified as at fair value through profit or loss and are recognized in profit or loss. Financial liabilities The Company initially measures its financial liabilities at fair value, except for certain related party transactions that are measured at the carrying or exchanged amount as appropriate. Financial liabilities are subsequently measured at amortized cost using the effective interest method, except for financial liabilities at FVTPL. Such liabilities shall be subsequently measured at fair value. Interest expense from financial liabilities classified as amortized cost is included in financial expenses using the effective interest rate method. Accounts payable and accrued liabilities are classified at amortized cost. Impairment At each reporting date, the Company assesses, on a forward-looking basis, the expected credit losses associated with its financial assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Fair value hierarchy The Company assesses all information available, including on a forward-looking basis, the expected credit losses associated with its assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as the reporting date, with the risk of default as at the date of initial recognition, based on all information available, and reasonable and supportive forward-looking information. E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2 --- 025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 11 Translation of foreign currency transactions Transactions in foreign currencies are translated at the exchange rate in effect at the date of the transaction. Foreign denominated monetary assets and liabilities are translated to their Canadian dollar equivalents using foreign exchange rates prevailing at the financial position reporting date. Exchange gains or losses arising on foreign currency translation are reflected in profit or loss. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined. Share-based compensation The Company grants share-based awards, including restricted share units (“RSUs”), finders warrants, and stock options, to directors, officers and consultants. Share-based compensation to employees is measured at the fair value of the instruments issued and recognized over the vesting periods. Share-based compensation to non-employees is measured at the fair value of goods or services received or the fair value of the equity instruments issued, if the fair value of the goods or services cannot be reliably measured and are recorded at the date the goods or services are received. The corresponding amount is recorded to share-based payment reserve. The fair value of RSUs is determined based on quoted market price of the Company’s common shares, in situations where the fair value of the goods or services received cannot be estimated reliably. The fair value of options is determined using the Black-Scholes Option Pricing Model which incorporates all market vesting conditions. The number of RSUs and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest. Upon the exercise of stock options and other share-based payments, consideration received on the exercise of these equity instruments is recorded as share capital and the related share-based compensation in share-based payment reserve is transferred to share capital. Share capital The Company records proceeds from share issuances, net of issue costs. Common shares issued for consideration other than cash are valued based on their market value at the date the agreement to issue shares was concluded. Flow-through shares The Company may, from time to time, issue flow-through common shares to finance its Canadian exploration program. Pursuant to the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company bifurcates the flow-through share into using the residual value method into: i) share capital; and ii) a flow-through share premium, equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability. Upon expenses being renounced, the Company derecognizes the liability and recognizes a deferred tax liability for the amount of tax reduction renounced to the shareholders. The premium is recognized as other income and the related deferred tax is recognized as a tax provision. E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE T --- HREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 12 The Company bifurcates the flow-through unit using the residual value method into: i) share capital; and ii) warrant. Value is allocated first into common shares based on the market trading price of the common shares at the time the flow-through units are priced, and any excess is allocated to warrants. Proceeds received from the issuance of flow-through shares are restricted to be used only for Canadian resource property exploration expenditures within a two-year period. The Company indemnifies the subscribers of flow-through shares against certain tax related amounts that become due related to their flow-through subscriptions. The Company may also be subject to a Part XII.6 tax on flow-through proceeds renounced under the Look- back Rule, in accordance with Government of Canada flow-through regulations. When applicable, this tax is accrued as a financial liability until paid. Valuation of equity units in private placements Proceeds received on the issuance of units, consisting of common shares and warrants, are allocated first to common shares based on the market trading price of the common shares at the time the units are priced, and any excess is allocated to warrants. 4. RECEIVABLES December 31, 2025 Q1 2026 December 31, 2025 Q1 2025 September 30, 2025 (Audited) Federal GST/HST and Quebec Sales Tax receivable $ 98,484 $ 55,785 $ 77,149 $ 98,484 $ 55,785 $ 77,149 5. MARKETABLE SECURITIES During the year ended September 30, 2022, the Company received 300,000 common shares of Rival Technologies Inc. related to the disposal of certain claims on the Turgeon Graphite Project (Note 6) valued at $112,464. As at December 31, 2025 the fair value of the 300,000 common shares was $2,100 (September 30, 2025 - $6,555 and December 31, 2024 - $16,840). The Company recorded an unrealized loss on investment of $ 4,455 during the three months ended December 31, 2025 (an unrealized loss of $429 during the year ended September 30, 2025, and an unrealized gain of $9,856 during the three months ended December 31, 2024). 6. EXPLORATION AND EVALUATION ASSETS December 31, 2025 - Q1 2026 Cost Accumulated Amortization Net Book Value Tetepisca $ 1,560,992 $ - $ 1,560,992 Turgeon 148,723 - 147,723 $ 1,709,715 $ - $ 1,709,715 E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 13 December 31, 2024 - Q1 2025 Cost Accumulated Amortization Net Book Value Tetepisca $ 1,288,103 $ - $ 1,288,103 Turgeon 147,260 - 147,260 $ 1,435,363 $ - $ 1,435,363 September 30, 2025 (Audited) Cost Accumulated Amortization Net Book Value Tetepisca $ 1,489,707 $ - $ 1,489,707 Turgeon 148,723 - 148,723 $ 1,638,430 $ - $ 1,638,430 Capitalization of exploration and evaluation expenditures incurred since inception are the following: - Tetepisca: $92,335 (2019); $2,088 (2020); $184,855 (2021); $95,652 (2022); $882,078 (2023) less mining tax credits -$99,542 ; $233,752 less mining tax credits $12,115, less impairment $96,000 (2024); $206,604 (2025); $71,285 (2026) Total: $1,560,992 Tetespica Project, Quebec: On April 15, 2019, the Company entered into an agreement to purchase 52 mineral claims located 225 km from Baie-Comeau, Quebec. The purchase price was $10,000; and 200,000 new common shares issued when a technical re --- port commissioned to include a mineral resources estimate in accordance with NI 43-101 is initiated; and a royalty in an amount equal to 1.5% of all Net Smelter Returns (NSR) with a right to repurchase at any time 0.5% of the NSR for $500,000. The Company signed an option agreement (the “Agreement”) dated January 31, 2024 (the “Effective Date”) with Volt Carbon Technologies Inc. (“Volt”). Under the terms of the Agreement, during the period from the Effective Date to December 31, 2024 (the “Expenditure Period”), Volt agrees to incur a total exploration expenditures of $680,000 on the Tetepisca Project (the “Property”) and upon the signing of this Agreement, the Company granted an option to Volt to acquire an undivided five percent (5%) interest in the mineral claims of the Property (the “Claims”). In exchange, the Company issued 1,600,000 common shares valued at $96,000 to Volt (Note 7) on March 20, 2024. The Agreement was terminated subsequent to the year ended September 30, 2024 as Volt failed to incur a total exploration expenditure of $680,000 during the Expenditure Period (Note 14). The Company did not issue additional shares to Volt beyond the 1,600,000 common shares, and Volt no longer has the option to acquire an undivided five percent (5%) interest in the Claims. The $96,000 capitalized in the exploration and evaluation assets upon the issuance of 1,600,000 common shares was impaired at the year-end due to the termination of the Agreement. Effective December 31, 2024, the Agreement with Volt was terminated as a result of Volt not incurring the exploration expenditure requirement during the Expenditure Period. - Turgeon : $74,766 (2019); $10,631 (2020); $334,490 (2021); $30,030 less option disposal of -$137,464 (2022); $7,350 less mining credits -$172,691 (2023); $Nil (2024); $1,611 (2025); Total: $147,723. E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 14 Turgeon Project, Quebec: a property acquired in 2019 located 122 km from Matagami, Quebec. Exploration work has started, and reports were issued to the Ministère de l'Énergie et des Ressources naturelles. Pending the results of the commissioned surveys and additional reports, an Option Agreement (the 'Option') has been entered into on February 2, 2022 with Rival Technologies Inc. (the 'Optionee', 'Rival' - OTCBB RIVT) to dispose of 84 of the 338 claims comprising the property for cash and stock payments over the next 5 years. It is determined that the nature of the Option combined with the remaining claims do not qualify the property to be reclassified as an asset held for sale and consequently, its classification remains a long-term exploration and evaluation asset. On March 1, 2023, the Option was terminated because the condition whereby work on the property amounting to $100,000 by February 28, 2023 was not met by the Optionee and any of the agreed future unrealized terms resulted in the termination of the Option with the claims remaining the property of the Company. All amounts earned by the Company cannot be claimed back by the Optionee, and neither party has any further obligation or liability regarding the Option agreement. 7. SHARE CAPITAL Authorized: Unlimited common shares with no par value. Unlimited class A preferred shares, one vote per share, non-participating, dividend determined at the discretion of the Board of dir --- ectors, but not exceeding twelve percent (12%) per annum of the redemption price for such shares, redeemable at their paid-in value plus an amount equal to any dividends declared thereon but unpaid. Unlimited class B preferred shares, non-voting, non-participating, dividend determined at the discretion of the Board of directors but not exceeding thirteen percent (13%) per annum of the redemption price for such shares, redeemable at their paid-in value plus an amount equal to any dividends declared thereon but unpaid. December 31, 2025 Q1 2026 December 31, 2024 Q1 2025 September 30, 2025 (Audited) Issued 72,675,373 common shares (September 30, 2025 – 71,090,373 common shares; December 31, 2024 – 53,038,806 common shares) Share issue costs $ 6,626,343 (4,476) $ 5,665,026 (71,006) $ 6,780,170 (248,927) Flow-through premium liability - (149,000) - $ 6,621,867 $ 5,445,020 $ 6,531,243 SHARES ISSUES : Shares issued during the Quarter ended December 31, 2025 On November 27, 2025, the Company issued 1,585,000 common shares valued at $95,100 for settlement of 3 debts amounting to $95,100 resulting in no gain or loss on settlement. E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 15 Shares issued during the Quarter ended December 31, 2024 On October 22, 2024, the Company completed a private placement of 1,000,000 units for gross proceeds of $50,000 at a price of $0.05 per unit. Each unit is comprised of one common share and one-half warrant. Each whole warrant is exercisable into a common share at $0.10 per share for a period of 60 months from the closing date. No value was allocated to the warrants associated with these units using the residual method. On October 22, 2024, the Company issued 2,425,280 units for settlement of debts totaling $121,264. Each unit is comprised of one common share and one-half warrant. Each whole warrant is exercisable into a common share at $0.10 per share for a period of 60 months from the closing date. No value was allocated to the warrants associated with these units using the residual method. On October 30, 2024, the Company completed a private placement of 3,950,000 units for gross proceeds of $197,500 at a price of $0.05 per unit. Each unit is comprised of one common share and one-half warrant. Each whole warrant is exercisable into a common share at $0.10 per share for a period of 60 months from the closing date. No value was allocated to the warrants associated with these units using the residual method. On November 15, 2024, the Company completed a private placement of 2,500,000 units for gross proceeds of $125,000 at a price of $0.05 per unit. Each unit is comprised of one common share and one-half warrant. Each whole warrant is exercisable into a common share at $0.10 per share for a period of 60 months from the closing date. No value was allocated to the warrants associated with these units using the residual method. On November 15, 2024, the Company issued 450,000 units for settlement of debts totaling $22,500. Each unit is comprised of one common share and one-half warrant. Each whole warrant is exercisable into a common share at $0.10 per share for a period of 60 months from the closing date. No value was allocated to the warrants associated with these units using the residual method. No value was allocated to the warrants associated with these units using th --- e residual method. On December 23, 2024, the Company completed a private placement of 1,862,500 units on a flow-through basis at a price of $0.08 per flow-through unit for gross proceeds of $149,000. Each flow-through unit consists of one common share and one-half common share purchase warrant. Each whole warrant is exercisable into a common share at $0.12 per share for a period of 60 months from December 24, 2024. The warrants associated with these flow-through units were valued at $27,938 using the residual method. The finders’ warrants were valued using Black Scholes option pricing model based on the following weighted average assumptions : Risk free interest rate 3%, expected life as indicated, expected volatility of 170%, and 0 expected dividends. STOCK OPTION AND RESTRICTED SHARE UNIT PLAN: On February 16, 2022, the Board of Directors has approved a resolution to adopt a Stock Option Plan and a Restricted Share Unit Plan (together referred to as the 'Plans'), providing that at no time a maximum 10% of the total number of issued and outstanding Shares (calculated on a non- diluted basis) may be reserved for issue under the two Plans. During the year ended September 30, 2024, the Company issued 2,100,000 options at an exercise price of $0.12 per share expiring in 5 years from the grant date to certain employees, officers, directors, consultants, and other service providers of the Company, of which 200,000 options were cancelled prior to the year-end due to termination of the optionee’s relationship with the Company. E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 16 On December 18, 2024, the Company issued 100,000 options at an exercise price of $0.12 per share expiring in 5 years from the grant date to a director of the Company. OPTIONS: December 31, 2025 September 30, 2025 Number of options Weighted average exercise price Number of options Weighted average exercise price Outstanding, beginning 2,000,000 $ 0.12 1,900,000 $ 0.12 Issued - - 100,000 0.12 Cancelled - - - - Outstanding, ending 2,000,000 0.12 2,000,000 $ 0.12 Details of options outstanding and exercisable at December 31, 2025, are as follows: Date of expiry Exercise price Number of options outstanding Number of options exercisable Weighted average remaining contractual life, year June 10, 2029 0.12 1,500,000 1,500,000 3.44 July 19, 2029 0.12 200,000 200,000 3.55 Sept.12, 2029 0.12 200,000 200,000 3.70 Dec. 18, 2029 0.12 100,000 100,000 3.97 2,000,000 2,000,000 3.67 WARRANTS: Warrants: Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price Issued - - 15,798,240 0.10 Expired - - (3,432,532) 0.55 Cancelled - - (283,334) 0.10 Outstanding, ending 26,285,005 $ 0.11 26,285,005 $ 0.11 December 31 2025 September 30, 2025 E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 17 WARRANTS (continued): Details of warrants outstanding and exercisable as at December 31, 2025, are as follows: Date of expiry: Exercise price $ Number of warrants Weighted average remaining contract life, year November 22, 2028 0.10 3,601,833 2.90 December 12, 2028 0.10 2,893,300 2.95 January 9, 2029 0.10 400,247 3.03 April 15, 2029 0.15 1,360,643 3.29 May 9, 2029 0.15 924,557 --- 3.35 July 25, 2029 0.12 1,250,000 3.57 September 19, 2029 0.15 56,185 3.72 October 22, 2029 0.10 1,712,640 3.81 October 30, 2029 0.10 1,975,000 3.83 November 15, 2029 0.10 1,475,000 3.88 December 23, 2029 0.10 931,250 3.98 April 7, 2030 0.10 1,823,230 4.27 April 28, 2030 0.10 1,580,000 4.33 May 23, 2030 0.10 2,761,120 4.40 June 20, 2030 0.10 3,540,000 4.47 26,285,005 3.72 Finder's Warrants: Number of warrants Weighted average exercise price Number of warrants Weighted average exercise price Outstanding, beginning of year 954,350 $ 0.08 484,268 $ 0.23 Issued - - 621,000 0.08 Expired (217,000) 0.10 (150,918) 0.54 Outstanding, ending 737,350 $ 0.08 954,350 $ 0.08 December 31 2025 September 30, 2025 E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 18 WARRANTS (continued): Details of finder's warrants outstanding and exercisable as at September 30, 2025, are as follows: Date of expiry: Exercise price $ Number of warrants Weighted average remaining contract life, year January 9, 2026 0.10 16,350 0.03 October 28, 2026 0.10 160,000 0.82 July 25, 2029 0.08 100,000 3.57 December 23, 2029 0.08 125,000 3.98 April 28, 2030 0.10 58,000 4.33 May 23, 2030 0.10 38,000 4.40 June 20, 2030 0.05 240,000 4.47 737,350 3.09 8. INCOME TAXES Since inception, the Company did not incur any differences in the carrying amount of assets and liabilities from their tax base, consequently there are no tax asset or liability arising from their timing differences recorded in the financial statements. The Company is uncertain that future taxable profit will allow the differed tax asset to be recovered in the application period, consequently there are no tax asset arising from tax losses carryforward. For the years ended September 30, 2025 and 2024 a reconciliation of income taxes at statutory rates with reported taxes is as follows: Year ended December 31, 2025 Year ended December 31, 2024 Loss before income taxes $ (916,424) $ (1,188,872) Expected income tax benefit at the combined rate of 26.6% (243,769) (316,240) Increase (decrease) in income tax benefit resulting from: Non-taxable and deductible elements (17,343) (14,977) Renunciation of flow-through shares 26,600 267,667 Change in prior year estimates (85,161) (2,022) Unrecognized tax benefit 319,673 65,572 $ - $ - The Company can carry forward losses totaling $4,846,537 for income tax purposes. The expiration dates for using these losses to reduce income taxes are as follows: 2039 $ 387,881 2040 411,140 2041 377,187 2042 590,158 2043 1,008,675 2044 2045 1,131,490 940,006 $ 4,846,537 E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 19 9. LOSS PER SHARE The calculation of the basic loss per share is based on the net loss and comprehensive loss for the period divided by the weighted average number of shares in circulation during the period. In calculating the diluted loss per share, potential common shares such as stock options, warrants and RSUs have not been included, as they would have the effect of decreasing the loss per share from continuing operations which would be antidilutive. The basic and diluted loss per share are $0.002 and $0.006 for the three months ended December 31, 2025 and 2024 respectively, and $0.02 for the y --- ear ended September 30, 2025. 10. SEGMENTED INFORMATION The Company’s business consists of one reportable segment being resource exploration. Details about geographic areas as at December 31, 2025 and 2024, and September 30, 2025 consist of 2 sites in the province of Quebec (Canada) totaling as follows: Non-current assets December 31, 2025 Q1 2026 December 31, 2024 Q1 2025 September 30, 2025 (Audited) Province of Quebec (Canada) $ 1,709,715 $ 1,435,363 $ 1,638,430 11. RELATED PARTY TRANSACTIONS Related parties include those having the authority and responsibility for planning, directing and controlling the Company's operation, directly or indirectly. They include the Board of directors and key management personnel such as senior officers including the President and Chief Executive Officer, the Chief Financial Officer and senior management. The Company paid or accrued amounts to key senior officers, management and directors or companies controlled by them, and to shareholders or companies controlled by them, for consulting services rendered in the normal course of business in the areas of operational expertise, and for financial and accounting services. December 31, 2025 Q1 2026 December 31, 2024 Q1 2025 September 30, 2025 (Audited) Consulting fees for administrative services rendered by the Chief Executive Officer (former CEO for year end 2025 and Q1 2025); new CEO for Q1 2026) $ 6,420 $ 42,000 $ 168,000 Consulting fees for financial and accounting services rendered by a Canadian company controlled by the Chief Financial Officer 17,100 17,100 68,400 Consulting fees for administrative management services rendered by the VP Exploration and Director included in operating or management expenses 5,000 10,000 20,000 E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 20 RELATED PARTY TRANSACTIONS (continued) Consulting fees for technical services rendered by the VP Exploration and a Director included in Exploration and evaluation assets 45,000 5,000 40,000 Share-based payments to various directors and officers of the Company - 6,469 5,774 $ 73,520 $ 80,569 $ 302,174 BALANCES:: As at December 31, 2025, the Company has an outstanding total balance of $23,500 (as at December 31, 2024 - $23,500 and September 30, 2025 - $32,407) payable to: the Vice-President Exploration $9,500 (as at December 31, 2024 - $9,500 and September 30, 2025 - $5,092), the Chief Financial Officer $Nil (as at December 31, 2024 - $Nil and September 30, 2025 - $19,323), as well as a the Chief Executive Officer : former CEO $14,000 and new CEO $3,691 (former CEO December 31, 2024 - $14,000 and September 30, 2025 - $7,992). 12. FINANCIAL INSTRUMENTS Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its obligations as they become due. The Company's ability to continue as a going concern is dependent on management's ability to raise required funding through future equity issuances. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating any investing and financing activities. Management and the Board of Directors are actively involved in the review, planning and approval of significant expenditures and commitments. As at December 31, 2025, the Company has current liabilities $263,304 (December 31, 2024: $410,809 and September 30, 2025 : $316,697) of which $Nil re --- lates to a non-cash flow-through premium liability (December 31, 2024 - $180,250, and September 30, 2025 - $Nil). Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash held in bank accounts. The Company’s cash is deposited in bank accounts held with a major bank in Canada. As most of the Company’s cash is held by a bank there is a concentration of credit risk. This risk is managed by using a major bank that is a high-quality financial institution as determined by rating agencies. Market risk Market risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because of changes in market prices. Some of the Company's financial instruments expose it to this risk, which comprises currency risk, interest rate risk and other price risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to interest rate risk is not material. The Company’s exposure to and management of interest rate risk has not changed materially during and since the year ended September 30, 2025. E-POWER RESOURCES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2025 AND 2024 AND THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2025 (EXPRESSED IN CANADIAN DOLLARS) Page 21 Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is currently not exposed to any significant foreign exchange rate risk. Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market. The other price risk associated with the Company’s current investments primarily relates to the change in the market price of the investment in marketable securities. As at December 31, 2025 a 10% change in the market price of the Company’s marketable securities would have an impact on profit or loss of approximately $210 (December 31, 2024 - $1,684, and September 30, 2025 $700). Management believes there is other price risk related to this investment. While the Company will seek to maximize the proceeds it receives from the sale of its investment, there is no assurance as to the timing of disposition or the amount that will be realized. The Company’s exposure to, and management of, other price risk has not changed materially during and since the year ended September 30, 2025. 13. CAPITAL MANAGEMENT The Company’s objectives of capital management are intended to safeguard the Company’s ability to continue as a going concern and to support the Company’s exploration and evaluation of its resource properties and support any expansion plans. Management defines capital as the Company’s shareholders’ equity. The Company manages the capital structure and makes adjustments in light of changes in economic conditions and the risk characteristics of the Company’s underlying assets. To effectively manage the entity’s capital requirements, th --- e Company has in place a planning and budgeting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its financial objectives. The Company may issue new shares or seek debt financing to ensure that there is sufficient working capital to meet its short-term business requirements. As at December 31, 2025, total managed capital was $1,722,467 (December 31, 2024: $1,383,257, and September 30, 2025: $1,776,613). The Company is not subject to any externally imposed restrictions and there has been no change to capital management during and since the year ended September 30, 2025. The Company is not subject to externally imposed capital requirements as at December 31, 2025 except when the Company issues flow-through shares for which the amount should be used for exploration work. During the year ended September 30, 2024, the Company completed a flow-through private placement totaling $100,000 and incurred sufficient eligible expenditures to satisfy its flow-through spending obligations during the year ended September 30, 2025. On December 23, 2024, the Company completed a flow-through private placement totaling $149,000. On June 20, 2025, the Company completed another flow-through private placement totaling $170,000. As at September 30, 2025, the Company incurred $208,216 in eligible exploration and evaluation expenditures and $71,285 as at December 31, 2025 and has a remaining balance of $129,499 to incur as at December 31, 2025 (December 31, 2024: $180,250)