SEDAR Interim Financial Statements

Consolidated Condensed Interim Financial Statements Prime Drink Group Corp. For the three-month and nine-month periods ended December 31, 2025 and 2024 (Unaudited) Consolidated Financial Statements | Prime Drink Group Corp. | 1 MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING The accompanying unaudited consolidated condensed interim financial statements of Prime Drink Group Corp. (the "Company") are the responsibility of management and the Board of Directors. The unaudited consolidated condensed interim financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with the accounting policies disclosed in the notes to the unaudited consolidated condensed interim financial statements. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the statement of financial position date. In the opinion of management, the unaudited consolidated condensed interim financial statements have been prepared within acceptable limits of materiality and are in accordance with International Accounting Standard 34 - Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards appropriate in the circumstances. Management has established processes, which are in place to provide it with sufficient knowledge to support management representations that it has exercised reasonable diligence in that (i) the unaudited consolidated condensed interim financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of, and for the periods presented by, the unaudited consolidated condensed interim financial statements and (ii) the unaudited consolidated condensed interim financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods presented by the unaudited consolidated condensed interim financial statements. The Board of Directors is responsible for reviewing and approving the unaudited consolidated condensed interim financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting processes and the unaudited consolidated condensed interim financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the unaudited consolidated condensed interim financial statements together with other financial information of the Company for issuance to the shareholders. Management recognizes its responsibility for conducting the Company’s affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities. NOTICE TO NO AUDITOR REVIEW OF CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, the statements must be acc --- ompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited consolidated condensed interim financial statements of the Company have been prepared by management and are responsibility of the Company’s management. The Company’s independent auditor has not performed a review or an audit of these consolidated condensed interim financial statements. Consolidated Financial Statements | Prime Drink Group Corp. | 2 Prime Drink Group Corp. Consolidated Condensed Interim Statements of Loss and Comprehensive Loss For the three-month and nine-month periods ended December 31, 2025 and 2024 3 months 9 months Unaudited (In Canadian dollars, except per share amounts) Note December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Revenues 6 $ 182,757 $ — $ 182,757 $ — Operating Expenses Purchase of goods 121,948 — 121,948 — Share-based payments 11 159,654 213,674 229,374 224,590 Consulting fees 60,000 211,425 207,500 396,958 Professional fees 181,711 (263,839) 589,760 195,627 Directors’ and audit committee members’ fees — (4,551) — 70,000 Marketing and advertising — 33,812 246,216 33,812 Investor relations 9,081 57,192 51,642 57,192 Water source development 2,116 3,787 6,796 3,787 Administrative expenses 55,885 (118,149) 220,492 (29,888) Depreciation of property and equipment 8 147 147 441 294 590,542 133,498 1,674,169 952,372 Loss from operations (407,785) (133,498) (1,491,412) (952,372) Other expenses (Income) Other expenses 6 2,998 — 28,489 — Interest income (375) (26,567) (3,692) (173,527) Financing expenses 7,370 1,058 7,370 1,058 Other professional fees and listing fees — 585,713 — 585,713 9,993 560,204 32,167 413,244 Loss from continuing operations (417,778) (693,702) (1,523,579) (1,365,616) Loss from discontinued operations 5 — (2,161,330) (251,816) (2,161,330) Net loss and comprehensive loss $ (417,778) $ (2,855,032) $ (1,775,395) $ (3,526,946) Net loss per share — Basic and diluted - continuing 12 $ (0.00) $ (0.00) $ (0.00) $ (0.01) Net loss per share — Basic and diluted - discontinued 12 $ — $ (0.01) $ (0.00) $ (0.01) Weighted average number of shares — Basic and diluted 365,470,497 278,283,103 360,985,649 189,371,372 The accompanying notes are an integral part of these consolidated condensed interim financial statements. Consolidated Financial Statements | Prime Drink Group Corp. | 3 Prime Drink Group Corp. Consolidated Condensed Interim Statements of Financial Position As of December 31, 2025 and March 31, 2025 Unaudited (In Canadian dollars) Note December 31, 2025 March 31, 2025 Assets Current assets Cash $ 45,580 $ 868,395 Restricted cash 7 450,000 — Sales taxes and other receivables 226,214 269,940 Prepaid expenses and deposits 10,958 37,638 732,752 1,175,973 Non-current assets Property and equipment 8 528,252 528,693 Water rights 9 4,910,029 4,910,029 Total assets $ 6,171,033 $ 6,614,695 Liabilities and Equity Current liabilities Accounts payable and accrued liabilities $ 841,366 $ 1,008,232 Liabilities from discontinued operations 5 54,361,093 54,536,868 Total liabilities 55,202,459 55,545,100 Shareholders’ equity Share capital 10 39,752,341 39,196,104 Reserves 11 6,860,691 5,742,554 Deficit (95,644,458) (93,869,063) Total equity (49,031,426) (48,930,405) Total liabilities and equity $ 6,171,033 $ 6,614,695 Subsequent events (note 16) Business combination (note 4) Basis of preparation (note 3) Going concern (note 2) Discontinued operations (note 5) The acc --- ompanying notes are an integral part of these consolidated condensed interim financial statements. Approved by the Board of Directors, “Alexandre Côté” “Raimondo Messina” (Signed) Alexandre Côté, CEO and Director (Signed) Raimondo Messina, Director Consolidated Financial Statements | Prime Drink Group Corp. | 4 Prime Drink Group Corp. Consolidated Condensed Interim Statements of Changes in Equity For the nine-month periods ended December 31, 2025 and 2024 Unaudited (In Canadian dollars, except number of share capital) Share Capital Note Number Amount Reserves Deficit Total shareholders’ equity Balance – April 1, 2024 144,177,462 $ 15,411,268 $ 3,502,376 $ (10,351,470) $ 8,562,174 Net loss — — — (3,526,946) (3,526,946) Shares issued – Business combination 10 91,200,000 10,861,721 618,681 — 11,480,402 Shares issued – Concurrent placement 10 61,377,000 7,672,125 — — 7,672,125 Shares issued – Convertible debenture 10 30,000,000 3,000,000 — — 3,000,000 Shares issued – Private placement 1 10 6,250,000 575,892 424,108 — 1,000,000 Shares issued – Private placement 2 10 2,200,000 290,118 259,882 — 550,000 Warrants exercised 11 5,368,750 750,616 (267,116) — 483,500 Share options exercised 11 600,000 208,049 (96,549) — 111,500 Share issuance costs 10 — (552,070) — — (552,070) Share-based compensation 11 — — 224,590 — 224,590 Balance – December 31, 2024 341,173,212 $ 38,217,719 $ 4,665,972 $ (13,878,416) $ 29,005,275 Balance – April 1, 2025 353,409,892 $ 39,196,104 $ 5,742,554 $ (93,869,063) $ (48,930,405) Net loss — — — (1,775,395) (1,775,395) Issuance of shares – Private placement 10 19,560,620 556,237 888,763 — 1,445,000 Share-based compensation 11 — — 229,374 — 229,374 Balance – December 31, 2025 372,970,512 $ 39,752,341 $ 6,860,691 $ (95,644,458) $ (49,031,426) The accompanying notes are an integral part of these consolidated condensed interim financial statements. Consolidated Financial Statements | Prime Drink Group Corp. | 5 Prime Drink Group Corp. Consolidated Condensed Interim Statements of Cash Flows For the nine-month periods ended December 31, 2025 and 2024 9 months Unaudited (In Canadian dollars) Note December 31, 2025 December 31, 2024 Operating activities: Net loss $ (1,775,395) $ (3,527,093) Adjustments for: Share-based payments 11 229,374 224,590 Depreciation of property and equipment 8 441 294 (1,545,580) (3,302,209) Sales taxes and other receivables 43,726 (145,592) Prepaid expenses and deposits 26,680 (42,991) Accounts payable and accrued liabilities (16,866) 232,163 Liabilities from discontinued operations (175,775) (10,913,188) Net change in non-cash operating items (122,235) (10,869,608) Cash flows used in operating activities (1,667,815) (14,171,817) Financing activities: Change in restricted cash 7 (150,000) — Shares issued – Private placement 10 995,000 1,550,000 Shares issued – Concurrent placement Business combination — 7,672,125 Shares issued – Convertible debenture — 3,000,000 Warrants exercised — 483,500 Share options exercised — 111,500 Share issuance costs — (552,070) Net cash from financing activities 845,000 12,265,055 Net (decrease) increase in cash (822,815) (1,906,762) Cash, beginning of period 868,395 2,457,088 Cash, end of period $ 45,580 $ 550,326 The accompanying notes are an integral part of these consolidated condensed interim financial statements. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 an --- d 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 6 1. Background and Nature of operations Prime Drink Group Corp. (the “Company” or “Prime”), formerly Dominion Water Reserves Corp. until its name changed on November 23, 2022, was incorporated under the Canada Business Corporations Act on October 26, 2015. The head office, principal address and records office of the Company are located at 609-1188 Avenue Union, Montreal, Quebec, H3B 0E5. The Company is listed on the Canadian Securities Exchange (the “CSE”), since August 10, 2020, and is trading under the symbol “PRME”. Prime Drink Group Corp. is a company that acquires spring water permits to develop operations in the spring water market in Quebec and elsewhere. Prime is the parent company of Dominion Water Reserves Corp., Prime Gluten Free Beverages Corp., 6305768 Canada Inc., Centre Piscicole de Duhamel Inc., 11973002 Canada Inc., Source Sainte-Cécile Inc., 3932095 Canada Inc. and Société Alto 2000 Inc. (“the subsidiaries”). These subsidiaries are fully owned by the Company. Prime acquired all of the issued and outstanding common shares or other form of share capital of Triani Canada Inc. (“Triani”) on October 31, 2024 (note 4). Triani is engaged in the production, bottling, and distribution of alcoholic and non- alcoholic beverages across North America. 2. Going Concern These consolidated financial statements have been prepared on a going concern basis in accordance with International Financial Reporting Standards (“IFRS”), which assumes that the Company will continue to operate for the foreseeable future and realize its assets and discharge its liabilities in the normal course of business. The Company’s continuing operations, which includes all entities except Triani, has no revenue-generating activities as it is in the early stages of developing its water source business. The Company incurred net loss of $1,775,395 for the nine- month period ended December 31, 2025 (2024 – $3,526,946), of which $1,523,579 (2024 – $1,365,616) was from continuing operations. The Company had an accumulated deficit of $95,644,458 (March 31, 2025 – $93,869,063) and a working capital deficiency of $54,469,707 (March 31, 2025 – working capital of $54,369,127). The Company’s ability to continue as a going concern, realize its assets and discharge its liabilities in the normal course of business is dependent on obtaining additional financing through equity issuances, debt arrangements, or other strategic alternatives. No assurance can be given that any such additional financing will be available, or that it can be obtained on terms favorable to the Company. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. On June 10, 2025, Triani Canada Inc. and its affiliated entities (collectively, the “Groupe Triani”) were placed under receivership pursuant to an order from the Québec Superior Court under section 243 of the Bankruptcy and Insolvency Act, following an application filed by secured creditors including Roynat Inc., Financement Agricole Canada, and the Canadian Imperial Bank of Commerce. Raymond Chabot Inc. was appointed as receiver and took possession of the assets of Triani on June 11, 2025. All assets subject to the receivership have been fully impaired in these consolidated financial statements; however, the related liabilitie --- s remain outstanding as the receivership process has not been completed. As of the date of approval of these consolidated financial statements, the Company is cooperating with the receiver and evaluating the implications of the receivership on its operations, financial position, and future viability. Management will continue to monitor the situation and assess the impact on the Company’s financial reporting in future periods. In connection with the acquisition of Triani, Prime Drink Group Corp. has provided additional guarantees to two of Triani’s secured lenders, up to a maximum of $17.6 million in aggregate on October 24, 2024 (note 15). At this stage, it is uncertain whether any amounts will become payable under these guarantees, as the receiver is still in the process of liquidating the seized assets. The ultimate outcome of this matter cannot be determined at this time. The existence of these guarantees, together with the uncertainties regarding the timing and outcome of the receivership process, also give rise to material uncertainties that may cast significant doubt on the Company’s ability to continue as a going concern. Management is actively monitoring the situation and evaluating potential mitigating actions. Based on current information available, management believes that the Company has sufficient resources to continue operations for at least the next twelve months. Accordingly, these financial statements have been prepared on a going concern basis, and do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Such adjustments could be material and could affect the carrying amounts of assets and liabilities, reported expenses, and the classifications used in the consolidated statements of financial position. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 7 3. Basis of Preparation Statement of compliance These consolidated condensed interim financial statements have been prepared in accordance and compliance with International Financial Reporting Standards (“IFRS”) applicable to the preparation of consolidated condensed interim financial statements, including IAS 34, Interim Financial Reporting. These consolidated condensed interim financial statements were prepared using the same accounting policies, methods of computation and basis of presentation as outlined in Note 3 - Basis of preparation and Note 4 – Summary of material accounting policies, as described in the Company's annual audited financial statements for the fifteen-month period ended March 31, 2025. The consolidated condensed interim financial statements do not include all the information and disclosures required in the Company’s annual financial statements and should be read in conjunction with the Company’s annual financial statements for the fifteen- month period ended March 31, 2025. These consolidated condensed interim financial statements were approved by the Company’s Board of Directors on February 25, 2026. Use of estimates and judgments The preparation of these consolidated condensed interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated condensed interim --- financial statements and accompanying notes. Management believes that the estimates used in the preparation of the consolidated condensed interim financial statements are reasonable; however, actual results may differ materially from these estimates. The areas involving significant judgments, estimates and assumptions have been detailed in Note 3 to the Company’s annual audited financial statements for the fifteen-month period ended March 31, 2025. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 8 4. Business Combination TRIANI CANADA INC. On October 31, 2024, the Company acquired all of the issued and outstanding shares of Triani. Triani is engaged in the production, bottling, and distribution of alcoholic and non-alcoholic beverages across North America. As a result of the control obtained through the acquisition of 100% of the outstanding shares of Triani, the assets and liabilities were consolidated into the Company’s financial statements. The assets consisted primarily of trade and other receivables, inventories, other current assets, property and equipment, right-of-use assets, intangible assets and other non-current assets. The liabilities assumed consisted of credit facilities, accounts payable and accrued liabilities, related-party debt, lease liabilities and other long-term liabilities. The Company paid a total consideration of $11,480,402, of which $10,861,721 was paid through the issuance of 91,200,000 common shares of the Company and the remaining $618,681 through the issuance of 11,200,000 share purchase warrants of the Company. Each share purchase warrants can be exercised into one common share of the Company at an exercise price of $0.125 per share for a period of twelve months from the closing date. In addition, the Company is subject to bonus consideration in an amount up to $23,500,000, payable in common shares of the Company pursuant to certain operational milestones achieved for the period from closing date to March 31, 2027. The following table summarizes the consideration for the acquisition: Common shares (Note 10) $ 10,861,721 Share purchase warrants (Note 11) 618,681 Total considerations $ 11,480,402 The following table summarizes the fair value of net assets acquired: Final Assets acquired: Trade and other receivables $ 1,375,133 Inventories 5,327,073 Other current assets 208,134 Property and equipment 7,729,750 Right-of-use assets on leases 10,998,712 Intangible assets 188,747 Other non-current assets 958,404 26,785,953 Liabilities assumed: Credit facility (12,848,681) Accounts payable and accrued liabilities (17,546,346) Related-party debt (18,380,472) Lease liabilities (11,443,677) (60,219,176) Net identifiable liabilities assumed (33,433,223) Goodwill 44,913,625 Fair value of net assets acquired $ 11,480,402 Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 9 5. Discontinued Operations On March 17, 2025, the Canada Revenue Agency (“CRA”) advised Triani that it did not meet the eligibility requirements to renew certain key licenses and permits u --- nder the Excise Act and revoked its brewer license. As a result, Triani was no longer authorized to produce or package alcoholic beverages and was given until April 17, 2025 to liquidate its remaining products. As a result, the Company has ceased Triani’s active operations related to the production, bottling, and commercialization of alcoholic and non-alcoholic beverages on March 17, 2025. On June 10, 2025, Triani was placed into receivership proceedings by its secured lenders, and the appointed receiver took possession of all of Triani’s assets. Management determined that Triani’s operations met the definition of a discontinued operation under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations because the revocation of its licenses resulted the cessation of a separate major line of business immediately and is expected to have a material effect on the Company’s financial results. As Triani was acquired (note 4) and discontinued within the same fiscal year, there is no impact on comparative information presented in these consolidated financial statements. The results of Triani’s operations are therefore presented separately as a discontinued operation for the current year only. Financial Performance of Discontinued Operations The post-acquisition operations of Triani are presented as discontinued operations in the consolidated statement of loss and comprehensive loss for the nine-month period ended December 31, 2025, as follows: Revenues $ 403,324 Operating expenses 192,600 Selling expenses 90,022 Administrative expenses 10,478 Profit from operations 110,224 Financing expenses 362,040 Net loss from discontinued operations $ (251,816) Assets and Liabilities of Discontinued Operations As at December 31, 2025, the major classes of assets and liabilities from discontinued operations included the following: Assets from discontinued operations Cash $ — Trade and other receivable 1,142,293 Inventories — Other current assets 129,490 Property and equipment 6,849,289 Right-of-use assets 10,474,964 Intangible assets 150,076 Other long-term assets 4,541,926 Total assets from discontinued operations (fully impaired on March 31, 2025) $ 23,288,038 Liabilities from discontinued operations Credit facility $ 13,351,981 Accounts payable and accrued liabilities 12,163,786 Related-party long-term debt 17,772,627 Lease liabilities 11,072,699 Total liabilities from discontinued operations $ 54,361,093 As the receiver assumed control of all Triani’s assets for sale and distribution to creditors, management recognized a full impairment of Triani’s assets at the amount of $26,583,896 in the fifteen-month period ended March 31,2025. This impairment was recorded within the loss from discontinued operations. The liabilities from discontinued operations included secured debt of $32,675,304 owed to three creditors. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 10 On October 31, 2024, the holding company, Prime, advanced $5,000,000 to Triani in the form of a non-interest-bearing secured promissory note. During the fifteen-month months period ended March 31, 2025, Prime issued additional secured promissory notes to Triani with an aggregate principal of $5,403,000, bearing interest of 8% per annum. All promissory notes --- are due on demand. These promissory note receivables of Prime were eliminated upon consolidation. Given receivership proceedings, management has concluded that these promissory notes are uncollectible. 6. Segment Reporting IFRS 8 Operating Segments requires operating segments to be determined based on the Company’s internal reporting to the Chief Operating Decision Maker (“CODM”). The CODM has been determined to be the Company’s Chief Executive Officer (the “CEO”) as he is primarily responsible for allocating resources and assessing performance of the Company’s operating segments. An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the CEO to make decisions about resources to be allocated to the segment, and for which discrete financial information is available. The Company has identified two operating segments:  Spring Water Operations – focused on acquiring spring water permits and developing operations in Quebec and other regions within Canada. During the nine-month period ended December 31, 2025, spring water operations generated sales of non-alcoholic beverages, resulting in revenue of $75,442 and cost of goods sold of $100,933. The resulting gross loss of $25,491 has been recognized as other expenses in the consolidated statement of loss and comprehensive loss under continuing operations. The spring water operations did not generate recurring revenue during the nine-month period ended December 31, 2025, and all assets are located in Canada.  Beverage Operations – focused on the production, bottling, and sale of alcoholic and non-alcoholic beverages across North America. Prime Gluten Free Beverages Corp. During the nine-month period ended December 31, 2025, the wholly owned subsidiary Prime Gluten Free Beverages Corp. (“Beverages”) operations resulted in revenue of $182,757 and cost of goods sold of $121,948. The resulting gross profit of $60,809 has been recognized under Loss from operations. All assets of Breverages are located in Canada. Triani During the nine-month period ended December 31, 2025, Triani was no longer authorized to produce or package alcoholic beverages and was given until April 17, 2025 to liquidate its remaining products resulting in revenue of $403,324 and cost of goods sold of $192,600. The resulting gross profit of $210,724 has been recognized under Loss from discontinued operations. All assets of Triani are located in Canada. This consists of Triani’s operations, which have been classified as discontinued operations (note 5). The results and assets of each segment are monitored by the CEO to assess performance and allocate resources and are presented in the consolidated financial statements consistent with the internal reporting provided to the CEO. 7. Restricted cash On December 31, 2025, the Company received $450,000 from investors, which was deposited into an escrow account in connection with a subscription receipt financing. As at December 31, 2025, the funds were in transit and not available for general use. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 11 8. Property and Equipment Land Building Furniture and fixtures Total Cost Ba --- lance – January 1, 2024 $ 516,500 $ 13,000 $ 1,689 $ 531,189 Additions — — 750 750 Balance – March 31, 2025 516,500 13,000 2,439 531,939 Additions — — — — Balance – December 31, 2025 $ 516,500 $ 13,000 $ 2,439 $ 531,939 Depreciation Balance – January 1, 2024 $ — $ 1,446 $ 1,065 $ 2,511 Depreciation charge for the fifteen-month period — 580 155 735 Balance – March 31, 2025 — 2,026 1,220 3,246 Depreciation charge for the period — 348 93 441 Balance – December 31, 2025 $ — $ 2,374 $ 1,313 $ 3,687 Net book value At March 31, 2025 $ 516,500 $ 10,974 $ 1,219 $ 528,693 At December 31, 2025 $ 516,500 $ 10,626 $ 1,126 $ 528,252 Depreciation of property and equipment is presented in depreciation expenses for an amount of $441 for the nine-month period ended December 31, 2025 (2024 – $294) in the consolidated statements of loss and comprehensive loss. 9. Water rights Water rights Cost Balance – January 1, 2024 $ 5,657,862 Additions — Impairment on water rights (747,833) Balance – March 31, 2025 4,910,029 Additions — Balance – December 31, 2025 $ 4,910,029 December 31, 2025 March 31, 2025 Water source Duhamel $ 684,250 $ 684,250 Notre-Dame-du-Laus 3,833,150 3,833,150 St-Joseph de Coloraine 392,629 392,629 Sainte-Cécile-de-Witton — — Saint-Élie-de-Caxton — — Source Alto 2000 Inc. — — Balance $ 4,910,029 $ 4,910,029 There were no impairment losses recognized on water rights during the three-month and nine-month period ended December 31, 2025. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 12 10. Share Capital Authorized: Unlimited number of common shares without par value. Issued and outstanding: 372,970,512 common shares as at December 31, 2025 (March 31, 2025 – 352,409,892). Transactions for the fifteen-month period ended March 31, 2025 On October 15, 2024, the Company closed the private placement 1 and issued 6,250,000 units which comprise one common share and one warrant at an agreed price of $0.16 per unit for gross proceeds of $1,000,000. The fair value of the shares of $575,892 was estimated at the issuance date based on a residual method where at first the fair value of the warrants was estimated based on the Black-Scholes pricing model (note 13). On October 31, 2024, the Company issued 91,200,000 common shares at a deemed price of $0.125 per share as consideration for the acquisition of Triani (note 5). Due to the escrow release conditions imposed by the Canadian Securities Exchange on these shares, a discount of $538,279 was recognized, resulting in a fair value of $10,861,721. Concurrently with the closing of the acquisition, the holders of the outstanding subscription receipts of the concurrent private placement exercised their conversion rights, and the Company issued 61,377,000 common shares at $0.125 per share for total gross proceeds of $7,672,125. In additional, upon closing, Triani’s convertible debenture holders automatically exercised their conversion rights and the Company issued 30,000,000 common shares at $0.10 per share for a total value of $3,000,000. On December 31, 2024, the Company completed the first closing of the private placement 2 and issued 110 units which comprise each 20,000 common shares and 19,230 warrants at an agreed price of $5,000 per unit for total gross proceeds of $550,000. --- The fair value of the shares of $290,118 was estimated at the issuance date based on a residual method where at first the fair value of the warrants was estimated based on the Black-Scholes pricing model (note 13). On February 11, 2025, the Company completed the second closing of the private placement 2 and issued 50 units which comprise each 20,000 common shares and 19,230 warrants at an agreed price of $5,000 per unit for total gross proceeds of $250,000. The fair value of the shares of $141,696 was estimated at the issuance date based on a residual method where at first the fair value of the warrants was estimated based on the Black-Scholes pricing model (note 13). On March 25, 2025, the Company completed the private placement 3 and issued 1,911 units which comprise each 5,880 common shares and 5,880 warrants at an agreed price of $999.60 per unit for total gross proceeds of $1,910,237. The fair value of the shares of $894,884 was estimated at the issuance date based on a residual method where at first the fair value of the warrants was estimated based on the Black-Scholes pricing model (note 13). Share issuance costs for all issuances amounted to $610,265 which have been recognized as a reduction of share capital. During the fifteen-month period ended March 31, 2025, 4,168,750 and 1,200,000 common shares were issued by the Company upon warrants exercised at exercise prices of $0.08 and $0.13, respectively, for a gross proceed of $483,500 (note 13). During the fifteen-month period ended March 31, 2025, 100,000 and 500,000 common shares were issued by the Company upon options exercised at exercise prices of $0.165 and $0.19, respectively, for gross proceeds of $111,500 (note 13). Transactions for the nine-month period ended December 31, 2025 On July 2, 2025 and August 12, 2025, the company completed its private placement of units for gross proceeds of $845,000. As a result, the Company issued 10,242,424 common shares and 7,681,811 warrants. Each warrant entitles the holder to purchase one common share at a price of $0.11 per share for three years from the closing date of the private placement. In connection with the private placement, the Company issued 921,818 broker warrants as finders’ fees to arm’s length finders. Each warrant entitles the holder to purchase one common share at a price of $0.11 per share for three years from the closing date of the private placement. On August 20, 2025, the Company issued 1,818,181 common shares at a price of $0.0825 per share as payment for professional services rendered from a Director, representing a total value of $150,000. On December 31, 2025, the Company completed its private placement of units for gross proceeds of $450,000. As a result, the Company issued 7,500,015 common shares and 7,500,015 warrants. Each warrant entitles the holder to purchase one common share at a price of $0.06 per share for three years from the closing date of the private placement. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 13 Shares in escrow As part of the acquisition of Triani (Note 4), in accordance with the policies of the Canadian Securities Exchange, for the Company as an emerging issuer, certain officers and directors entered into an agreement with the Company and a tru --- stee, whereby they agreed to deposit 109,096,000 common shares, issued pursuant to the acquisition, in escrow. 10% of the escrow securities were to be released on the closing date, followed by six subsequent releases of 15% every six months thereafter. As at December 31, 2025, there were 63,770,976 shares in escrow (March 31, 2025 - 80,322,000). 11. Share-Based Compensation and Warrants Share options The Company maintains a Share Option Plan (the “Plan”) for the benefit of directors, officers, employees and consultants. The maximum number of common shares reserved for issuance and available for purchase pursuant to options granted under the Plan cannot exceed 10% of the total number of common shares of the Company issued and outstanding at the date of any grant made. In addition, the aggregate number of shares so reserved for issuance to one person may not exceed 5% of the issued and outstanding shares in any given 12-month period. Options pursuant to the Plan are granted at the discretion of the Board of Directors, vest at schedules determined by the Board, and have an exercise price of not less than that permitted by the stock exchange on which the shares are listed. The following summarizes the share option activities for the nine-month period ended December 31, 2025 and the fifteen- month period ended March 31, 2025: December 31, 2025 March 31, 2025 Number of options Weighted average exercise price Number of options Weighted average exercise price Options outstanding, beginning of period 8,950,000 $ 0.16 5,500,000 $ 0.16 Granted 3,500,000 0.06 5,835,000 0.17 Exercised — — (600,000) 0.19 Expired (1,000,000) 0.15 (1,785,000) 0.16 Options outstanding, end of period 11,450,000 0.13 8,950,000 0.16 Options exercisable, end of period 8,816,665 $ 0.13 5,500,000 $ 0.17 The following table summaries the information on the share options outstanding as at December 31, 2025: Expiry date Number of options outstanding Exercise price Number of options exercisable April 5, 2026 500,000 0.13 500,000 April 5, 2026 3,400,000 0.165 3,400,000 October 31, 2027 2,450,000 0.16 816,665 December 27, 2027 600,000 0.25 600,000 November 24, 2028 1,000,000 0.06 1,000,000 December 31, 2028 2,500,000 0.06 2,500,000 October 31, 2029 1,000,000 0.16 — 11,450,000 $ 0.13 8,816,665 Transactions for the fifteen-month period ended March 31, 2025 On November 13, 2024, 100,000 options were exercised at an exercise price of $0.165, for a gross amount of $16,500. On November 14, 2024, 500,000 options were exercised at an exercise price of $0.19, for a gross amount of $95,000. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 14 On October 31, 2024, 4,235,000 share options were granted to certain officers, employees, and consultants. The options vest in yearly installments over six years and allow the holder to purchase one common share of the Company at an exercise price of $0.16 per share for a period of 3 years. The fair value of the options of $345,991 was estimated at the grant date based on the Black-Scholes pricing model. On October 31, 2024, 1,000,000 share options were granted to an officer. The options vest in yearly installments over six years and allow the holder to purchase one common share of the Company at an exercise price of $0.16 --- per share for a period of 5 years. The fair value of the options of $86,687 was estimated at the grant date based on the Black-Scholes pricing model. On December 27, 2024, 600,000 share options were granted to an officer. The options vest immediately and allow the holder to purchase one common share of the Company at an exercise price of $0.25 per share for a period of 3 years. The fair value of the options of $88,758 was estimated at the grant date based on the Black-Scholes pricing model. During the fifteen-month period ended March 31, 2025, 1,785,000 share options were cancelled unvested. No share-based payment has been recognized for these share options cancelled. Share options granted were valued using the Black-Scholes pricing model with the following range of assumptions: Exercise price $0.16 to $0.25 Expected dividend yield Nil Risk-free interest rate 2.99% to 3.09% Expected life 3 to 5 years Expected volatility 115 % During the fifteen-month period ended March 31, 2025, the Company expensed $298,649 in share-based payments related to the vesting of these options. During the fifteen-month period ended March 31, 2025, a total of $96,549 was transferred from reserves to share capital for the share options exercised. Transactions for the nine-month period ended December 31, 2025 On November 24, 2025, 1,000,000 share options were granted to a director. The options vest immediately and allow the holder to purchase one common share of the Company at an exercise price of $0.06 per share for a period of 3 years. The fair value of the options of $35,782 was estimated at the grant date based on the Black-Scholes pricing model. On December 31, 2025, 2,500,000 share options were granted to a director. The options vest immediately and allow the holder to purchase one common share of the Company at an exercise price of $0.06 per share for a period of 3 years. The fair value of the options of $89,012 was estimated at the grant date based on the Black-Scholes pricing model. Share options granted were valued using the Black-Scholes pricing model with the following range of assumptions: Exercise price $0.055 to $0.065 Expected dividend yield Nil Risk-free interest rate 2.41% to 2.55% Expected life 3 years Expected volatility 107.74% to 108.62% During the nine-month period ended December 31, 2025, the Company expensed $229,374 in share-based payments. Warrants All of the outstanding warrants were issued in conjunction with the issuance of common shares. The fair value of warrants issued and outstanding is reflected in reserves. Amounts for warrants that are subsequently exercised are transferred from reserves to share capital. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 15 The following table summarizes the warrant activities for the nine-month period ended December 31, 2025 and the fifteen- month period ended March 31, 2025: Number of warrants Weighted average exercise price Balance – December 31, 2023 4,168,750 $ 0.08 Granted 31,763,480 0.19 Exercised (5,368,750) 0.09 Balance – March 31, 2025 30,563,480 $ 0.19 Granted 16,103,644 0.09 Balance – December 31, 2025 46,667,124 $ 0.16 Transactions for the fifteen-month period ended March 31, 2025 On July 2, 2024, 418,750 warrants were exercised at an exercise price --- of $0.08 for gross proceeds of $33,500. On September 17, 2024, 3,750,000 warrants were exercised at an exercise price of $0.08 for gross proceeds of $300,000. On October 15, 2024, in connection with the issuance of the private placement 1, the Company issued 6,250,000 warrants with each warrant entitling the holder to acquire one common share at an exercise price of $0.16 per common share until October 15, 2026. The fair value of the warrants of $424,108 was estimated at the grant date based on the Black-Scholes pricing model. On October 31, 2024, in connection with the acquisition of Triani (note 5), the Company issued 11,200,000 warrants with each warrant entitling the holder to acquire one common share at an exercise price of $0.125 per common share until October 31, 2025. The fair value of the warrants of $618,681 was estimated at the grant date based on the Black-Scholes pricing model. On December 31, 2024, in connection with the issuance of the first closing of private placement 2, the Company issued 2,115,300 warrants with each warrant entitling the holder to acquire one common share at an exercise price of $0.26 per common share until December 31, 2026. The fair value of the warrants of $259,882 was estimated at the grant date based on the Black-Scholes pricing model. On February 11, 2025, in connection with the issuance of the second closing of private placement 2, the Company issued 961,500 warrants with each warrant entitling the holder to acquire one common share at an exercise price of $0.26 per common share until February 11, 2027. The fair value of the warrants of $108,304 was estimated at the grant date based on the Black-Scholes pricing model. On March 25, 2025, in connection with the issuance of the private placement 3, the Company issued 11,236,680 warrants with each warrant entitling the holder to acquire one common share at an exercise price of $0.25 per common share until March 25, 2027. The fair value of the warrants of $1,015,352 was estimated at the grant date based on the Black-Scholes pricing model. On December 17, 2024, 1,200,000 warrants were exercised at an exercise price of $0.125 for gross proceeds of $150,000. Warrants granted were valued using the Black-Scholes pricing model with the following range of assumptions: Exercise price $0.125 to $0.26 Expected dividend yield Nil Risk-free interest rate 2.57% to 3.09% Expected life 1 to 2 years Expected volatility 110.01% to 114.54% During the fifteen-month period ended March 31, 2025, a total of $267,116 was transferred from reserves to share capital for the warrants exercised. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 16 Transactions for the nine-month period ended December 31, 2025 On July 4, 2025, and August 20, 2025, in connection with the issuance of the private placement, the Company issued 8,603,629 warrants with each warrant entitling the holder to acquire one common share at an exercise price of $0.11 per common share until September 30, 2028. The fair value of the warrants of $621,628 was estimated at the grant date based on the Black-Scholes pricing model. Warrants granted were valued using the Black-Scholes pricing model with the following range of assumptions: Exercise price $0.11 Expected dividend yield Nil --- Risk-free interest rate 2.68% Expected life 3 years Expected volatility 107.76% to 109.20% On December 31, 2025, in connection with the issuance of the private placement, the Company issued 7,500,015 warrants with each warrant entitling the holder to acquire one common share at an exercise price of $0.06 per common share until December 31, 2028. The fair value of the warrants of $267,134 was estimated at the grant date based on the Black-Scholes pricing model. Warrants granted were valued using the Black-Scholes pricing model with the following range of assumptions: Exercise price $0.055 Expected dividend yield Nil Risk-free interest rate 2.55% Expected life 3 years Expected volatility 107.74% Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 17 12. Loss Per Share Basic loss per share Basic loss per share for the nine-month periods ended December 31, 2025 and 2024 was calculated by dividing the net loss by the weighted average number of common shares outstanding of 360,985,649 (2024 – 189,371,372). Diluted loss per share Diluted loss per share was computed by dividing net loss by the diluted number of common shares. The Company reported net losses for the nine-month periods ended December 31, 2025 and 2024 and therefore did not add any shares related to the dilutive effect of the conversion of share options and warrants as they would be anti-dilutive. 13. Related Party Transactions All transactions with related parties have occurred in the normal course of operations and are recorded at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Key management compensation The key management personnel are defined as those individuals having authority and responsibility for planning, directing and controlling the activities of the Company, including members of the Company’s executive management team and the Board of Directors. During the nine-month periods ended December 31, 2025 and 2024, the Company entered into transactions with shareholders and key management personnel other than balances disclosed in notes above. 3 months 9 months December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Consulting fees paid to a Director (former President and CEO) $ 159,000 $ 9,000 $ 177,000 $ 27,000 Consulting fees paid to the CEO 30,000 30,000 90,000 158,333 Consulting fees paid to the CFO 30,000 27,000 98,000 144,000 Professional fees paid to a Director 30,000 30,000 90,000 158,000 Director’s and audit committee members’ fees — — — 70,000 Share-based compensation to Directors and Officers 34,860 — 229,374 163,355 Related parties Related parties of the Company include key management personnel’s family members and companies over which they have significant influence or control. The Company transacted with related parties during the nine-month periods ended December 31, 2025, mainly with 9296-0186 Quebec Inc. and 9372-3039 Quebec Inc. These transactions were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties having normal trade terms. On August 20, 2025, the Company issued 1,818,181 common shares at a price of $0.0825 per share as payment for professional services rendered from a Director, r --- epresenting a total value of $150,000. All balances with related parties bear no interest, have no maturity and no collateral attached. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 18 14. Financial Instruments and Risk Management Fair value of financial instruments The Company has determined that the carrying amount of cash, sales taxes and other receivables, and accounts payable and accrued liabilities is a reasonable approximation of their fair value due to the short-term maturity of those instruments. The tables below summarize the carrying of financial assets and liabilities, as of December 31, 2025 and March 31, 2025: Carrying value December 31, 2025 March 31, 2025 Financial assets measured at amortized cost Cash $ 45,580 $ 868,395 Other receivables 221,478 265,324 Financial liabilities measured at amortized cost Accounts payable and accrued liabilities $ 841,366 $ 1,008,232 Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company’s approach to managing liquidity is to ensure, to the extent possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. In connection with the acquisition of Triani, Prime Drink Group Corp. has provided additional guarantees to two of Triani’s secured lenders, up to a maximum of $17.6 million in aggregate (note 2). At this stage, it is uncertain whether any amounts will become payable under these guarantees, as the receiver is still in the process of liquidating the seized assets. The ultimate outcome of this matter cannot be determined at this time. These guarantees, together with uncertainties relating to the timing and outcome of the receivership process, represent significant liquidity risks to the Company. Should the guarantees be called, the Company may not have sufficient resources to settle such obligations, which may cast significant doubt on the Company’s ability to continue as a going concern. The Company monitors its cash resources on an ongoing basis and is pursuing additional financing and capital management strategies to mitigate liquidity risk. As at December 31, 2025, the Company had $45,580 of cash available to meet its short-term obligations. Accounts payable and accrued liabilities, which are typically due within 30 days, are the only other financial liabilities expected to be settled in the short term. Other than the $17.6 million maximum guarantee, the Company has no other borrowings. The $17.6 million represents the maximum potential cash outflow under the guarantees and would fall due contingent on the outcome of the receivership proceedings. The guarantees represent the maximum contractual exposure. The actual amount, if any, will depend on the results of the receivership process. Credit risk Credit risk is the risk of an unexpected financial loss to the Company if a customer or counterparty to a financial instrument fails to meet contractual obligations, and it arises primarily from the Company's other receivables. The Company’s credit risk is principally attributable to its other receivables. The amounts --- presented in the consolidated statements of financial position are net of an allowance for expected credit risk, estimated by the Company’s management and based, in part, on the age of the specific receivable balance and the current and expected collection trends. The Company's exposure to credit risk is mainly influenced by the characteristics of each counterparty. Generally, the Company does not require collateral or other security from counterparties for financial assets; however, credit is extended following an evaluation of creditworthiness. In addition, the Company performs ongoing credit reviews of its counterparties. An allowance for expected credit losses is maintained to reflect an impairment risk for financial assets based on an expected credit loss model which factors in changes in credit quality since the initial recognition of financial assets based on counterparty risk categories. Bad debts are also provided for based on collection history and specific risks identified on a counterparty-by-counterparty basis. Prime Drink Group Corp. Notes to the Consolidated Condensed Interim Financial Statements For the three-month and nine-month periods ended December 31, 2025 and 2024 (In Canadian dollars, unless otherwise stated) Unaudited Consolidated Financial Statements | Prime Drink Group Corp. | 19 No allowance for expected credit losses in respect of other receivables was required as at December 31, 2025 as the balance has been collected in full subsequently. The Company also has credit risk relating to cash. The Company manages its risk by transacting only with sound financial institutions. The carrying amounts of financial assets in the consolidated statements of financial position represent the Company's maximum credit exposure. Market risk Market risk is the risk that changes in market prices, including foreign exchange rates, interest rates and other market factors, will affect the Company's financial performance or the value of its financial instruments. The Company’s exposure to market risk is minimal, as it primarily holds cash in Canadian dollars, has no interest-bearing debt, and conducts the majority of its operations within Canada. The Company monitors market conditions and may consider hedging strategies if exposures increase materially. 15. Commitment On November 20, 2020, the company entered into a 25-year water sales contract with Acquanor Inc. with an obligation to supply water at a price of $0.005 per litre of water for the first five years, $0.010 from year 6 to 10, $0.015 from year 11 to 15 and $0.02 from year 16 to 25, not exceeding 71 million litres for each year with no significant consequences in the event of breach. In connection with the acquisition of Triani (note 4), the Company has provided guarantees to two of Triani’s secured lenders for a maximum aggregate amount of $17.6 million. These guarantees are contingent upon the outcome of the receivership process of Triani and, as at December 31, 2025, no amounts have been called under these guarantees. The ultimate timing and amount, if any, payable under these commitments cannot be determined at this time. 16. Subsequent Events Licensing Agreement – Beach Day Every Day Announced on February 6, 2026, the Company entered into exclusive licensing agreements with Prime Capital Investments Inc. for certain trademarks related to Beach Day Every Day (“BDED”). Under the terms of the agreements, the Company obtained exclusive rights to use the BDED brand for th --- e production and commercialization of ready-to-drink and low-calorie cola beverages in North America, excluding Québec, in exchange for royalties and marketing and promotional fees. The licenses have a term of five years.