SEDAR Interim Financial Statements

Peak Discovery Capital Ltd. Interim Financial Statements Three and Nine months ended December 31, 2025 and 2024 (Unaudited) 2 NOTICE TO READER The accompanying unaudited condensed interim financial statements of Peak Discovery Capital Ltd. for the interim period ending December 31, 2025 have been prepared by management in accordance with International Financial Reporting Standards and approved by the Audit Committee and Board of Directors of the Company. These unaudited condensed interim financial statements have not been reviewed by the Company's independent auditor. 3 Peak Discovery Capital Ltd. Interim statements of financial position (Unaudited - Expressed in Canadian dollars) December 31, 2025 March 31, 2025 $ $ Assets Cash 51,466 1,721 Other receivables 2,725 1,368 Total assets 54,191 3,089 Liabilities and equity (deficiency) Current liabilities: Accounts payable and accrued liabilities (Note 5) 10,611 70,190 Short-term loans (Note 4 & 6) - 179,450 Total liabilities 10,611 249,640 Equity (deficiency) Share capital (Note 6) 100,044,661 99,767,138 Contributed surplus (Note 7) 6,781,819 6,726,202 Accumulated deficit (106,782,900) (106,739,891) Total Equity (deficiency) 43,580 (246,551) Total liabilities and Equity (deficiency) 54,191 3,089 Nature of operations and going concern (Note 1) . On behalf of the Board: “Mary Ma” “S. Randall Smallbone” Mary Ma, director S. Randall Smallbone, director 4 Peak Discovery Capital Ltd. Interim statements of loss and comprehensive loss (Unaudited - Expressed in Canadian dollars) Three months ended December 31 Nine months ended December 31 2025 2024 2025 2024 $ $ $ $ Expenses Consulting fees & directors fee 3,000 3,000 9,000 9,000 Listing and filing fees 2,037 5,233 10,910 14,352 Professional fees 299 - 8,479 8,439 Stock-based compensation - 5 1,304 Others 115 667 282 891 Operating expenses 5,451 8,905 28,671 33,986 Interest expenses (Note 4) 119 6,609 14,338 18,246 Loss and comprehensive loss for the period (5,570) (15,514) (43,009) (52,232) Net income (loss) per share Basic (0.00) (0.01) (0.01) (0.01) Diluted (0.00) (0.01) (0.01) (0.01) Weighted average number of common shares outstanding Basic 5,585,511 3,884,020 4,449,114 3,884,020 Diluted 5,585,511 3,884,020 4,449,114 3,884,020 5 Peak Discovery Capital Ltd. Interim statements of changes in equity (deficiency) (Unaudited - Expressed in Canadian dollars, except share amounts) Total Share shareholders’ Common capital Contributed Accumulated equity shares amount surplus deficit (deficiency) $ $ $ $ Balance at April 1, 2024 3,884,020 99,767,138 6,724,898 (106,674,780) (182,744) Net loss for the period - - - (52,232) (52,232) Share-based payment transactions - - 1,304 - 1,304 Balance at December 31, 2024 3,884,020 99,767,138 6,726,202 (106,727,012) (233,672) Balance as April 1, 2025 3,884,020 99,767,138 6,726,202 (106,739,891) (246,551) Shares and warrants issued for cash (Note 6&7) 1,487,714 74,386 29,754 - 104,140 Shares and warrants issued for debts (Note 6&7) 3,543,643 222,192 25,863 - 248,055 Share issuance costs (Note 6) - (19,055) - - (19,055) Net loss for the period - - - (43,009) (43,009) Balance at December 31, 2025 8,915,377 100,044,661 6,781,819 (106,782,900) 43,580 The accompanying notes are an integral part of these unaudited interim financial statements. 6 Peak Discovery Capital Ltd. Interim statements of cash flows (Unaudited - Expressed in Canadian dollars) For the nine months ended December 31 2025 2024 $ $ Cash provided by (used in --- ): Operating activities Loss for the period (43,009) (52,232) Adjustments for: Share-based payment transactions - 1,304 Net interest costs 14,338 18,246 (28,671) (32,682) Other receivables (1,357) 2,727 Prepayments - (161) Accounts payable and accruals (15,312) (577) Changes in non-cash working capital (16,669) 1,989 Cash provided by (used in) operating activities (45,340) (30,693) Financing activities Proceeds from short-term loans 15,000 30,000 Repayment of short-term loans (5,000) - Proceeds from shares issuance (Note 6) 104,140 - Share issuance costs (Note 6) (19,055) - Cash provided by (used in) financing activities 95,085 30,000 Increase (decrease) in cash 49,745 (693) Cash, beginning of year 1,721 786 Cash, end of year 51,466 93 Supplemental cash flow information: Interest paid 1,405 - Income tax paid - - Conversion of debt to common shares (Note 9) 248,055 - The accompanying notes are an integral part of these unaudited interim financial statements. Peak Discovery Capital Ltd. Notes to the interim financial statements For the three and nine months ended December 31, 2025 and 2024 (Unaudited - expressed in Canadian dollars) 7 1. Nature of operations and going concern Peak Discovery Capital Ltd. (the “Company”) is currently a shell entity, focusing on identifying and evaluating assets or businesses for future merger, arrangements, reverse takeover transactions. The Company’s head office is located at 612-610 Granville St, Vancouver, BC, Canada. For the nine months ended December 31, 2025, the Company had a net loss of $43,009 as compared to a net loss of $52,232 for the same period of the prior year. As at December 31, 2025, the Company has an accumulated deficit of $106.78 million (March 31, 2025 - $106.74 million). The continuation of the Company as a going concern is dependent upon its ability to realize new business opportunities and raise additional financing if required, which may cast significant doubt upon the Company’s ability to continue as a going concern due to the uncertainty. Management prepared the financial statements on a going concern basis unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so. The financial statements do not include adjustments to the recoverability and classification on recorded assets and liabilities and related expenses that might be necessary, should the Company be unable to continue as a going concern. If the going concern assumption is not appropriate, material adjustments to the financial statements could be required. 2. Basis of preparation (a) Statement of compliance These unaudited condensed interim consolidated financial statements were prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"), and in compliance with International Accounting Standard 34 - Interim Financial Reporting ("IAS 34"). These interim consolidated financial statements do not include all of the information and disclosures required in annual financial statements and, accordingly, should be read in conjunction with the Company’s audited annual financial statements for the years ended March 31, 2025 and 2024. The timely preparation of the interim condensed financial statements requires management to make estimates and assumptions, which requires management to exercise judgment in applying the Company's accounting policies. The areas involving a higher degree --- of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements have been set out in Note 2 of the Company’s audited annual financial statements for the years ended March 31, 2025 and 2024. The Board of Directors approved the interim condensed financial statements on February 23, 2026. (b) Basis of measurement These interim financial statements have been prepared on the historical cost basis except for the revaluation of certain financial assets and financial liabilities to fair value. In addition, these interim financial statements have been prepared using the accrual basis of accounting, except for cash flow information. 3. Accounting standards issued but not yet effective A number of new standards, amendments to standards and interpretations are not yet effective and have not been applied in preparing the Company’s financial statements as of December 31, 2025. None of these pronouncements are expected to have material impact on the Company’s financial statements. 4. Short-term Loans As of December 31, 2025, the Company had no outstanding short-term loans compared to short-term loans of $179,450 as at March 31, 2025. The short-term loans of $189,450 and accrued interest of $48,105, totaling $237,555, Peak Discovery Capital Ltd. Notes to the interim financial statements For the three and nine months ended December 31, 2025 and 2024 (Unaudited - expressed in Canadian dollars) 8 were settled through the issuance of common shares and warrants in December 2025 (refer to Note 6&9). In addition, short-term loan and accrued interest of $6,405.04 was settled in cash in November 2025. Maturity date Interest rate March 31, 2025 $ Short-term loan from related parties (i) 104,450 June 14, 2025 15% 15,000 July 9, 2025 15% 15,000 July 25, 2025 15% 6,000 October 8, 2025 15% 4,000 January 10, 2026 15% 10,000 January 15, 2026 15% 5,000 January 30, 2026 15% 34,450 January 31, 2026 15% 15,000 Short-term loan from third parties (i) 75,000 Due on demand 15% 30,000 January 2, 2026 15% 15,000 January 3, 2025 15% 15,000 January 11, 2026 15% 15,000 179,450 (i) Short-term loans are working capital loans borrowed by the Company from third parties and related parties (directors of the Company). Upon the maturity, at the sole discretion of the lenders, the principle of the loans and accrued interest (the “Debt”) would be paid by cash or common shares of the Company based on the Company’s stock trading price at the conversion date, subject to the approval of the TSX Venture Exchange. For the quarter and nine months ending December 31, 2025, the Company incurred $ 119 and $14,338 interest expense, respectively, as compared to $6,609 and $18,246 for the same period of prior year relating to the short- term loans. 5. Related party transactions The related party transactions are in the normal course of operations and are measured and recorded at the exchange amount of consideration agreed between the related parties. Related party transactions not disclosed elsewhere in these consolidated financial statements are listed below. Key management personnel include all executive officers and directors of the Company. Short-term employee benefits include consulting and directors’ fees. Share-based compensation includes stock option compensation only. The Company did not incur any termination fees, post-employment benefit or other long term benefits to key management personnel for the three and nine months ended December 31, 2025 --- and 2024. Transactions with key management personnel are summarized below. For the three months ended December 31 For the nine months ended December 31 2025 2024 2025 2024 $ $ $ $ Consulting and directors’ fees 3,000 3,000 9,000 9,000 Share-based payments - 5 - 1,304 3,000 3,005 9,000 10,304 As at December 31, 2025, $4,000 (March 31, 2025- $18,000) recorded in accounts payable and accruals were due to directors and officers mainly for services rendered to the Company. Peak Discovery Capital Ltd. Notes to the interim financial statements For the three and nine months ended December 31, 2025 and 2024 (Unaudited - expressed in Canadian dollars) 9 As at December 31, 2025, there were no outstanding short-term loans compared to $104,450 short-term loans as at March 31, 2025 from directors and officers of the Company with details disclosed in Note 4. During this quarter, the Company settled $157,534 of indebtedness owing to directors and officers, comprising $10,500 in accounts payable and $147,034 in short-term loans and accrued interest, through the issuance of 2,250,487 common shares at a deemed price of $0.07 per share on December 4, 2025. 6. Share Capital The authorized share capital of the Company consists of an unlimited number of common shares without par value. On January 30, 2024, the Board of the Company approved the consolidation of its 19,420,123 issued and outstanding pre-consolidation common shares on a ratio of five (5) old for one (1) new basis (the “Consolidation), following the consolidation the Company had 3,884,020 issued and outstanding post-consolidation common shares, and effective at the opening of February 20, 2024, the shares of the Company commenced trading on TSX Venture Exchange on a consolidated basis under its new ticker symbol of “PEC.H”. The number of shares and per share amounts for the current and comparative figures in these financial statements have been adjusted to reflect the above change. On November 26, 2025, the Company completed the non-brokered private placement financing (the “Offering”) previously announced on October 20, 2025. The Offering consisted of 1,487,714 units (the “Units”) issued at a price of $0.07 per Unit, for aggregate gross proceeds of $104,140. Each Unit comprised one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one additional common share at an exercise price of $0.10 per share and will expire one year from the date of issuance. Finder’s fee of $5,460 was paid in cash, 8% of the proceeds received from the investors introduced by the finders. On December 4, 2025, the Company also completed the debt settlements (the “Debt Settlements”) with certain directors, officers, consultants and arm’s length creditors previously announced on October 20, 2025. An aggregate amount of $248,055 of indebtedness was settled. Of this amount, $157,534 owing to non-arm’s length parties was settled through the issuance of 2,250,487 common shares at a deemed price of $0.07 per share. The remaining $90,521 owing to arm’s length creditors was settled through the issuance of 1,293,156 Units at a price of $0.07 per Unit, on terms consistent with the Units issued under the Offering. Share issuance costs of $19,055 were incurred in connection with the completion of the Offering and Debt Settlements. These costs included finder’s fees, legal fees, transfer agent fees, and filing fees and were recorded as a reduction of --- share capital. The shareholders are entitled to dividends, if, as and when declared by the board of directors, to one vote per share at meetings of the shareholders and, upon liquidation, to share equally in such assets as are distributable to the shareholders. No dividends were paid during the three and nine months ended December 31, 2025 and 2024. 7. Warrants As of December 31, the Company has 2,780,870 outstanding warrants, each Warrant entitles the holder to purchase one additional common share at an exercise price of $0.10 per Share and will expire one year from the date of issuance. A summary of the Warrants transactions is listed below: Expiry date Exercise price Number of warrants outstanding Remaining contractual life(years) November 26, 2026 $0.10 1,487,714 0.90 December 4, 2026 $0.10 1,293,156 0.93 2,780,870 Peak Discovery Capital Ltd. Notes to the interim financial statements For the three and nine months ended December 31, 2025 and 2024 (Unaudited - expressed in Canadian dollars) 10 The fair values of the warrants were calculated using the Black-Scholes option-pricing model based on the following assumptions: November 26,2025 December 4, 2025 Stock price $0.09 $0.09 Exercise Price $0.10 $0.10 Expected life (years) 1.00 1.00 Expected volatility 102.65% 102.65% Dividend yield 0.00% 0.00% Risk free interest rate 2.390% 2.440% 8. Share-based compensation The Company has a share option plan. Under this plan, the aggregate number of common shares that may be reserved for issuance pursuant to options shall not exceed 10% of the outstanding common shares at the time of the granting of an option, less the aggregate number of common shares then reserved for issuance pursuant to any other share compensation arrangement. The exercise price per common share for an option granted shall not be less than the discounted market price. Every option shall have a term not exceeding and shall expire no later than 10 years after the date of grant. The Board of Directors shall determine the manner in which an option shall vest and become exercisable. A summary of the share option transactions is listed below. Number of options(1) Weighted average exercise price(1) Weighted average remaining contractual life (years) Outstanding, March 31, 2024 132,000 1.23 3.44 Outstanding, March 31, 2025 132,000 1.23 2.44 Outstanding, December 31, 2025 132,000 1.23 1.69 Exercisable, December 31, 2025 132,000 1.23 1.94 (1) As the result of the Consolidation (Note 6), the granted and outstanding options were consolidated at five (5) old for one (1) new basis effective January 30, 2024. The number of stock options and per option amount have been adjusted to reflect this change since the beginning of the year presented. No options were granted and expired during the quarter ended December 31, 2025 and 2024. Subsequent to the quarter end, 20,000 options expired on February 11, 2026. The following table summarizes the information of outstanding and exercisable share options as of December 31, 2025. Outstanding Exercisable Weighted Weighted average Weighted average remaining average Exercise Number of exercise contractual Number of exercise price Options price life (years) shares price $ $ $ 2.50 20,000 2.50 0.12 20,000 2.50 1.00 52,000 1.00 1.69 52,000 1.00 1.00 60,000 1.00 2.75 60,000 1.00 Total 132,000 1.23 1.93 132,000 1.23 Peak Discovery Capital Ltd. Notes to the interim financial statements For the three and nine months ended December 31, 2025 and 2024 (Unaudited --- - expressed in Canadian dollars) 11 Total share-based compensation expense for employee share options for the three and nine months ended December 31, 2025 was $nil, (2024 - $5 &$1,304), respectively. 9. Non-cash financing activities During the year ended December 31, 2025, the Company settled an aggregate of $248,055 of indebtedness, consisting of $10,500 in accounts payable and $237,555 in short-term loans and accrued interest, through the issuance of Shares and Units, as described in Notes 6 and 7. These transactions represent non-cash financing activities and, accordingly, have not been reflected in the statement of cash flows. 10. Financial instruments and financial risk management (a) Fair value The fair value of cash, other receivables (excluding GST receivable), accounts payable and accrued liabilities and short-term loans approximates its carrying values as at the reporting date due to the short-term maturities of these instruments. The Company does not have financial instruments measured at the fair value on a recurring basis. (b) Financial risk The Company’s activities expose it to a variety of financial risks. The Company’s overall business strategies, tolerance of risk and general risk management philosophy are determined by the directors in accordance with prevailing economic and operating conditions. Liquidity risk Liquidity risk is the risk that an entity will be unable to meet its financial obligations as they fall due. As at December 31, 2025 the Company had a cash balance of $54,191 and had accounts payable and accrued liabilities of $10,611. Liquidity risk is assessed as low. The Company manages liquidity risk by preparing cash flow forecasts of upcoming cash requirements. 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 reduces its credit risk on restricted cash by placing these instruments with institutions of high credit worthiness. As at December 31, 2025, the Company’s maximum exposure to credit risk is the carrying value of its financial assets. Interest risk Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company was not exposed to material interest rate risk as it did not have any variable interest rate loans during the quarter ended December 31, 2025. Currency risk The Company is exposed to foreign currency risk to the extent that monetary liabilities held by the Company are not denominated in Canadian dollars. The Company’s operations is primary in Canada and the Company is not subject to material currency risk. 11. Capital management The Company’s objectives when managing capital are to continue to provide returns for shareholders and comply with any externally imposed capital requirements while safeguarding the Company’s ability to continue as a going concern. The Company is pursuing assets and businesses for merger or acquisition. In this respect, the Company may issue new shares.