SEDAR Interim Financial Statements

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS SIX MONTHS ENDED DECEMBER 31, 2025 and 2026 (Expressed in Canadian Dollars) (Unaudited) 1 NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the condensed consolidated interim financial statements have not been reviewed by an auditor. The accompanying unaudited condensed consolidated interim financial statements of Pure Energy Minerals Limited have been prepared by and are the responsibility of management. These condensed consolidated interim financial statements for the six months ended December 31, 2025 have not been reviewed or audited by the Company’s independent auditors. 2 The accompanying notes are an integral part of these condensed consolidated interim financial statements. PURE ENERGY MINERALS LIMITED Condensed Consolidated Interim Statements of Financial Position (Unaudited - Expressed in Canadian Dollars) As at Notes December 31, 2025 (Unaudited) June 30, 2025 (Audited) ASSETS CURRENT Cash $ 367,834 $ 620,315 Goods and Services Tax receivable 6,768 1,813 Prepaid expenses 4 378,164 238,561 752,766 860,689 Exploration and evaluation assets 5 35,184,418 35,181,862 TOTAL ASSETS $ 35,937,184 $ 36,042,551 LIABILITIES CURRENT Accounts payable and accrued liabilities 6 $ 158,166 $ 136,175 Advanced royalty - 136,430 TOTAL LIABILITIES 158,166 272,605 SHAREHOLDERS' EQUITY Share capital 7 59,731,784 59,731,784 Reserves 7 3,315,599 3,587,636 Foreign currency translation reserve 83,818 77,658 Deficit (27,352,183) (27,627,132) TOTAL SHAREHOLDERS' EQUITY 35,779,018 35,769,946 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 35,937,184 $ 36,042,551 Nature of Business and Going Concern (Note 1) These condensed consolidated interim financial statements were approved for issue by the Board of Directors on February 25, 2026, and signed on its behalf by: “Daniel Barnosky” “William Morton” Director Director 3 PURE ENERGY MINERALS LIMITED Condensed Consolidated Interim Statements of Comprehensive Income (Loss) For the six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) Three Months Ended Six Months Ended Notes December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 REVENUE 5 $ 139,499 $ 143,436 $ 277,253 $ 279,801 EXPENSES Bank charges and interest 360 296 609 614 Investor relations 12,395 1,685 12,726 5,514 Management fees and salaries 6 71,705 54,191 119,951 124,890 Office and rent 24,196 42,598 46,294 61,236 Professional fees 6 36,727 33,123 54,708 55,326 Share-based compensation 6, 7 21,510 80,386 27,505 163,812 Transfer agent and filing fees 24,985 14,605 31,407 20,296 Travel - 56,366 5,297 56,366 191,878 283,250 298,497 488,054 INCOME (LOSS) BEFORE OTHER ITEMS (52,379) (139,814) (21,244) (208,253) OTHER ITEMS Foreign exchange gain (loss) (9,919) 9,586 (3,356) 8,029 Gain on write-down of accounts payable - - Bank interest income 1 11 7 25 TOTAL OTHER ITEMS (9,918) 9,597 (3,349) 8,054 NET INCOME (LOSS) FOR THE PERIOD (62,297) (130,217) (24,593) (200,199) OTHER COMPREHENSIVE INCOME (LOSS) Items that may be reclassified subsequently to income (loss) for the period Foreign currency translation adjustment (10,827) 62,578 6,160 46,975 COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD $ (73,124) $ (67,639) $ (18,433) $ (153,224) Earnings (loss) per share, bas --- ic and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.01) Weighted average number of common shares outstanding Basic Diluted 33,967,983 33,967,983 33,967,983 33,967,983 4 PURE ENERGY MINERALS LIMITED Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity (Unaudited - Expressed in Canadian Dollars) Share Capital Number of Common Shares without Par Value Amount ($) Reserves ($) Foreign Currency Translation Reserve ($) Deficit ($) Total Shareholders' Equity ($) Balance, June 30, 2024 33,967,983 59,731,784 3,666,686 76,359 (27,669,498) 35,805,331 Share-based compensation - - 163,813 - - 163,813 Net loss and comprehensive loss for the period - - - 46,975 (200,199) (153,224) Balance, December 31, 2024 33,967,983 59,731,784 3,830,499 123,334 (27,869,697) 35,815,920 Reclassification of fair value of expired stock options - (294,222) - 294,222 - Share-based compensation - - 51,359 - - 51,359 Net loss and comprehensive loss for the period - - - (45,676) (51,657) (97,333) Balance, June 30, 2025 33,967,983 59,731,784 3,587,636 77,658 (27,627,132) 35,769,946 Reclassification of fair value of expired stock options - - (299,542) - 299,542 Share-based compensation - - 27,505 - - 27,505 Net income and comprehensive income for the period - - - 6,160 (24,593) (18,433) Balance, December 31, 2025 33,967,983 59,731,784 3,315,599 83,818 (27,352,183) 35,779,018 5 PURE ENERGY MINERALS LIMITED Condensed Consolidated Interim Statements of Cash Flows For the six months ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) Six Months Ended December 31, 2025 (Unaudited) December 31, 2024 (Unaudited) Cash provided by (used in): OPERATING ACTIVITIES Net income (loss) for the year $ (24,593) $ (200,199) Items not involving cash Unrealized gain on foreign exchange 1,929 (16,362) Share-based compensation 27,505 163,813 4,841 (52,748) Net changes in non-cash working capital items Goods and Services Tax receivable (4,955) (3,876) Prepaid expenses (139,603) (228,736) Accounts payable and accrued liabilities 21,991 38,303 Advanced royalty (136,430) 7,020 Net cash (used in) operating activities (254,156) (240,037) Effect of exchange rate changes on cash 1,675 31,658 Change in cash during the period (252,481) (208,379) Cash, beginning of the period 620,315 860,948 Cash, end of the period $ 367,834 $ 652,569 Supplemental cash flow information (Note 11) PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 6 1. NATURE OF BUSINESS AND GOING CONCERN Pure Energy Minerals Limited (“Pure Energy” or the “Company”) was incorporated on May 10, 2007 under the British Columbia Business Corporations Act. The Company’s principal business activities are the acquisition, exploration and development of mineral properties. The Company is domiciled in Canada and is a reporting issuer in British Columbia and Alberta. Its common shares are publicly traded on the TSX Venture Exchange (the “Exchange”) under the stock symbol “PE”. In addition, the Company trades on the OTCQB trading platform in the United States (“US”) under the trading symbol “PEMIF” and on the Börse Frankfurt (Stock Exchange) under the trading symbol “AHG”. The address of its head office is 1400 -1055 West Hastings, Vancouver, British Columbia, Canada. At December 31, 2025, the Company had not yet determined whether its properties contain ore reserves that are e --- conomically recoverable. The recoverability of amounts shown for mineral properties and related exploration and evaluation assets is dependent upon the discovery of economically recoverable reserves, confirmation of the Company's interest in the underlying mineral claims, the ability of the Company to obtain necessary financing to complete development and upon future profitable production from the mineral properties or proceeds from the disposition of the mineral properties. Under the terms of an earn-in agreement dated May 1, 2019 (the “Transaction”) with Schlumberger Technology Corporation (“SLB”), a subsidiary of Schlumberger Limited, SLB is responsible for all costs associated with the Clayton Valley Project (“CV Project”) and Pilot Plant (Note 5). For the six months ended December 31, 2025, the Company recognized advance royalty revenue of $277,253 (2024 - $279,801), costs including share-based compensation of $298,497 (2024 - $488,054) and loss from other items of $3,349, (2024 - gain of $8,054) resulting in a loss of $24,593 (2024 – Net loss of $200,199). At December 31, 2025, the Company had an accumulated deficit of $27,352,183 (June 30, 2025 - $27,627,132). The Company's ability to continue its operations and to realize its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. The Company will require further financing to meet its financial obligations, fund its exploration programs, and sustain its operations in the normal course of business. The necessity that the Company raise sufficient funds to carry out its exploration and development plans is conditional, in part, on the continuation of its agreements and investor support. The material uncertainty raised by these conditions may cast significant doubt about the Company’s ability to continue as a going concern. These condensed consolidated interim financial statements do not give effect to any adjustments, which would be necessary should the Company be unable to continue as a going concern. In such circumstances, the Company would be required to realize its assets and discharge its liabilities outside of the normal course of business, and the amounts realized could differ materially from those reflected in the accompanying consolidated financial statements. 2. BASIS OF PRESENTATION a) Statement of compliance These condensed consolidated interim financial statements have been prepared in accordance with IFRS Accounting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), and interpretations of the IFRS Interpretations Committee (“IFRIC”). b) Basis of presentation These condensed consolidated interim financial statements have been prepared on the historical cost basis, except for certain financial instruments that are measured at fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 7 2. BASIS OF PRESENTATION (continued) c) Consolidation The condensed consolidated interim financial statements include the accounts of the Company --- and its 100% wholly owned subsidiaries, 0891884 B.C. Ltd., Esmeralda Minerals, LLC, 1056625 B.C. Ltd., 1061582 B.C. Ltd. and LT Capital Holdings, LLC (collectively referred to as the “Company”). Subsidiaries are entities controlled by the Company. Control exists when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Intercompany balances and transactions are eliminated on consolidation. d) Significant accounting estimates and judgments The preparation of these condensed consolidated interim financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. These consolidated financial statements include estimates that, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the condensed consolidated financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions, and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes could differ from these estimates. Significant assumptions about the future that management has made and other sources of estimation uncertainty at the reporting date, which could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to the following. Critical accounting estimates • Share-based compensation Share-based compensation is valued using the Black-Scholes option pricing model at the date of grant and expensed in profit or loss over the vesting period of each award. The Black-Scholes option pricing model utilizes subjective assumptions, such as expected price volatility, forfeiture rate and expected life of the option. Changes in these input assumptions can significantly affect the fair value estimate. Critical accounting judgments • Impairment of exploration and evaluation asset The net carrying value of an exploration and evaluation asset is reviewed regularly for conditions that suggest potential indications of impairment. This review requires significant judgment. Factors considered in the assessment of asset impairment include, but are not limited to, whether there has been a significant adverse change in the legal, regulatory, accessibility, title, environmental or political factors that could affect the property’s value; whether there has been an accumulation of costs significantly in excess of the amounts originally expected for the property’s acquisition, development or cost of holding; and whether exploration activities produced results that are not promising such that no more work is being planned in the foreseeable future. PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Sta --- tements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 8 2. BASIS OF PRESENTATION (continued) d) Significant accounting estimates and judgments (continued) • Functional currency The functional currency for the Company’s subsidiary, Esmeralda Minerals, LLC, is the US dollar, which is the currency of the primary economic environment in which this entity operates. Determination of functional currency may involve certain judgments to determine the primary economic environment and the Company reconsiders the functional currency of its entities if there is a change in events and conditions that determined the primary economic environment. 3. MATERIAL ACCOUNTING POLICY INFORMATION The Company uses the same accounting policies and methods of computation as in Note 3 of the annual consolidated financial statements for the year ended June 30, 2025. Accounting standards issued but not yet effective The following new standards and interpretations have been issued by the IASB, but are not yet effective and have not been applied in preparing these consolidated financial statements. The Company will adopt the amendments on their effective dates. 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 statement of loss and comprehensive loss, disclosure of any management-defined performance measures related to the statement 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 consolidated financial statements and notes to the consolidated financial statements. Amendments to IFRS 9, Financial Instruments, 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 consolidated financial statements and notes to the consolidated financial statements. PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 9 4. PREPAID EXPENSES AND ADVANCES December 31, 2025 June 30, 2025 Railroad Valley claims advance payment (note 5) $ 329,677 $ 163,070 Railroad Valley option deposit (note 5) 34,265 34,100 --- Other prepaid expenses 14,222 41,391 Total $ 378,164 $ 238,561 5. EXPLORATION AND EVALUATION ASSETS Clayton Valley Claims Acquisition costs Balance, June 30, 2024 $ 20,810,037 Share issued for property - Impact of foreign exchange (298) Balance, June 30, 2025 20,809,739 Share issued for property - Impact of foreign exchange 427 Balance, December 31, 2025 $ 20,810,166 Exploration and evaluation Balance, June 30, 2024 $ 14,435,965 Decommissioning cost derecognized (65,492) Impact of foreign exchange 1,650 Balance, June 30, 2025 14,372,123 Impact of foreign exchange 2,129 Balance, December 31, 2025 $ 14,374,252 Total, June 30, 2025 $ 35,181,862 Total, December 31, 2025 $ 35,184,418 Clayton Valley Claims Schlumberger transaction The Company entered into an agreement with SLB on May 28, 2019 (the “Earn-In Agreement”) for an earn-in option (the "Option") of, and if completed, the sale of the CV Project to SLB. PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 10 5. EXPLORATION AND EVALUATION ASSETS (continued) Concurrently, SLB undertook a private placement in the Company for US$1,500,000 and converted convertible debt of US$400,000 and interest of $19,765. These transactions resulted in SLB holding 5,915,440 common shares, a 17.8% interest in Pure Energy at June 30, 2025 (2024 - 17.8%). The Earn‐In Agreement provides a three‐year earn‐in period (the “Option Period”) commencing on the receipt of the final federal and state permits necessary for the construction of the Pilot Plant. The Company and SLB received the required permits from key governmental agencies for the construction and operation of the Pilot Plant. Further, SLB has completed a comprehensive technology demonstration and testing program as required to earn-in to the Company's CV Project during the year ended June 30,2025. SLB may now exercise the Option at any time during the Option Period by giving notice to exercise the option. The option period expires on March 17, 2026. During the Option Period, SLB will assume all project-related property, permitting and development costs, and will act as operator of the Project. During the Option Period, the Company is entitled to receive a non-refundable minimum royalty (“MR”) payment of US$400,000 annually commencing January 1, 2021 for a period of five years or until the CV Project achieves commercial production. At June 30, 2025 the Company has collected US$1,800,000. Once the property goes into production, the Company will receive an effective 1.2% net smelter royalty on the first US$111.11 million of production and thereafter a 3% net smelter return royalty (“NSR”) on minerals produced at the CV Project. During the six months ended December 31, 2025, the Company recognized $137,253 (US$100,000) (2024 - $136,365 (US$100,000)) of royalty revenue related to the AMR payments outlined in the Earn-In Agreement. The movement of deferred revenue is presented in the table below: $ Balance, June 30,2024 136,870 Addition 557,732 Recognized in revenue (558,172) Balance, June 30,2025 136,430 Impact of foreign exchange 1,324 Recognized in revenue (137,754) Balance, December 31 ,2025 - GeoXplor Corp. (“GeoXplor”) and Clayton Valley Lithium Inc. for the CV and DB claims in Clayton Valley, Esmeralda County, Nevada On May 12, 2014, the Company entered into a definitive option agreement with GeoXplor to earn a 100% --- interest in the CV and DB claims in Clayton Valley, Esmeralda County, Nevada (the “Property”). Under the agreement, GeoXplor was the operator, and the Company had an option to earn a 100% interest for the following consideration: Date Cash Payment US$ Expenditure Requirement US$ Share Issuance Effective date (paid/issued) 100,000 - 166,667 Within one year (paid/issued) 250,000 750,000 29,485 Within two years (paid/issued) 250,000 1,000,000 29,485 Within three years (superseded) 250,000 2,000,000 29,485 Within four years (superseded) 250,000 Pre-feasibility study or commercial production 29,485 Total 1,100,000 3,750,000 284,607 PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 11 5. EXPLORATION AND EVALUATION ASSETS (continued) On May 10, 2017, the Company entered into a new option agreement with GeoXplor (described below under “GeoXplor-LiX consolidated agreement”). The new option agreement supersedes the original May 12, 2014 agreement. Once the earn-in is complete, GeoXplor will receive a 3% NSR royalty on commercial production, which may be purchased at a future date. GeoXplor is a private company that holds the CV and DB mineral claims, subject to the option agreement described above. Prior to this new agreement, GeoXplor also provided contract exploration services to Pure Energy at the CV Project. Nevada Alaska Option and Lease Agreement for the CD and CE claims in Clayton Valley, Esmeralda County, Nevada On May 31, 2015 (the “Effective date”), the Company entered into an option and lease agreement whereby the Company acquired an exclusive lease and exploration license to conduct exploration and evaluation work on certain unpatented placer mining claims located in Esmeralda County, Nevada. Consideration for this acquisition is as follows: Date Cash Payment Share Issuance Effective date (paid/issued) $35,000 37,770 Within one year (paid/issued) $35,000 2,380 Within two years (paid/issued) $35,000 2,564 Within three years (paid/issued) $35,000 6,369 Within four years (paid by SLB, issued) $35,000 21,653 Within five years and each year thereafter(1) US$75,000 - (1) SLB paid US$75,000 on May 26, 2023, May 16, 2022 and May 28, 2021 The Company can acquire a 100% interest in the property by making a payment to the optionor of US$500,000 or issuing shares of the Company of equal value. The optionor will retain a 3% NSR on the property. Clayton Valley Claims GeoXplor-LiX consolidated agreement for NSP, PM, CV, DB, CVL and CVS claims in Clayton Valley, Esmeralda County On May 10, 2017, the Company entered into an agreement to acquire Lithium X Energy Corp.’s (“Lithium X”) subsidiaries holding certain Clayton Valley properties and property options and to consolidate the claims with the GeoXplor claims under a revised option agreement. The Transaction resulted in 100% acquisition of three subsidiaries, 1056625 B.C. Ltd., 1061582 B.C. Ltd. and LT Capital Holdings, LLC. The Company issued 3,339,697 common shares at a fair value of $12,022,909 and 337,048 share purchase warrants measured at a fair value of $724,223. The fair value of the shares and warrants issued, along with the costs incurred to complete the Transaction, were capitalized in accordance with the Company’s accounting policy for its evaluation and exploration assets. On acquisition, the Company also assumed and recognized decommissioning liabi --- lity, measured at a fair value of $81,381. The warrants expired unexercised during the year ended June 30, 2020. In addition, Lithium X acquired 595,238 units of the Company for gross proceeds of $2,000,000. Each unit consisted of one common share and one-half of one share purchase warrant. The warrants expired unexercised during the year ended June 30, 2020. As part of the agreement, the Company was assigned the obligation to pay a 2% NSR from the production of minerals and mineral ores that are extracted from the CVS and CVL claims to the original seller of such claims to Lithium X. On May 26, 2021, the Company entered into an agreement to purchase the 2% NSR. The purchase of the underlying royalty removes any future obligation by the Company for royalty payments on these properties. The purchase price consisted of 75,000 common shares of the PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 12 5. EXPLORATION AND EVALUATION ASSETS (continued) Clayton Valley Claims (continued) Company, valued at $89,250 and a cash payment of $30,985 (US$25,000). The Company also reimbursed the seller $6,411 (US$5,000) of legal expenses. On May 10, 2017, the Company also entered into a new option agreement with GeoXplor, closing June 5, 2017. The option agreement superseded the May 12, 2014 agreement (CV and DB claims). Under the option agreement, the Company decreases its royalty obligations and assumes operatorship over an expanded group of optioned mineral claims. The agreement required the completion of a feasibility study by December 31, 2019 and the payment of US$4,500,000 on or before July 1, 2021 (amended as per April 20, 2021 amending agreement below). The Company entered into amending agreements with GeoXplor dated June 8, 2018, August 10, 2018, October 1, 2018 and April 20, 2021. Total cash consideration of US$1,037,500 was paid to GeoXplor between May 10, 2017 and May 30, 2019. Total share consideration of 1,083,333 common shares was issued to GeoXplor between May 10, 2017 and December 31, 2018. The fourth amending agreement dated April 20, 2021 provides a modified payment schedule as follows, and eliminates the feasibility requirement in exchange for a final investment decision by SLB. (i) US$500,000 in value of the Company’s shares on the signing of the fourth amending agreement (issued); (ii) US$250,000 of the Company’s shares on or before June 30, 2021 (transferred from SLB’s existing holdings); (iii) US$250,000 of the Company’s shares on or before December 31, 2021 (transferred from SLB’s existing holdings); (iv) US$500,000 on June 30, 2022 (paid by SLB); (v) US$500,000 on December 31, 2022 (paid by SLB); (vi) US$3,000,000 on December 31, 2023 or earlier at the discretion of SLB (paid by SLB); and (vii) US$1,000,000 in value of the Company’s shares on the earlier of the date of the final investment decision or December 31, 2023 on December 2023 this payment was amended via letter dated December 20, 2023, whereby instead of issuing US$1,000,000 the payment would be US$750,000 (paid by SLB) in cash and US$250,000 (Can$318,563) in shares which was made before December 31, 2023. The terms of the royalty obligation with GeoXplor are as follows: (i) A 3% royalty on all minerals produced and extracted from the GeoXplor property; (ii) Payment of an advance royalty of US$250,000 on the fourth (paid subsequent --- ly by SLB) and fifth anniversaries of the May 10, 2017 option agreement (creditable against the production royalty in (i) above); and (iii) Payment of an advance royalty of US$500,000 on each anniversary thereafter (creditable against the production royalty in (i) above). The royalty can be purchased by the Company for US$10,000,000 at any time after the eighth anniversary and prior to the ninth anniversary of the closing date. Under the Bureau of Land Management of the United States (the “Bureau”), the Company is required to hold reclamation bonds that cover the estimated cost to reclaim the disturbed ground. During the year ended June 30, 2025, SLB legally assumed the Clayton Valley claims decommissioning liabilities. As a result the Company received the refund of related reclamation bonds from the Bureau and accordingly derecognized the related decommissioning liability. As at December 31, 2025, the Company has reclamation bonds of $nil (June 30, 2025 - $nil) relating to its Clayton Valley claims and decommissioning liabilities of $nil (June 30, 2025 - $nil). PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 13 5. EXPLORATION AND EVALUATION ASSETS (continued) Clayton Valley Claims (continued) NE Claims On November 8, 2017, the Company entered into an asset purchase agreement (the “Agreement”) with Advantage Lithium Corp. (“Advantage”) and Nevada Sunrise Gold Corporation (“Nevada Sunrise”) (together, the “Vendors”) to acquire the Clayton NE claim blocks (the “Acquired Claims”) located in Esmeralda County, Nevada. Pursuant to the Agreement, Pure Energy issued to the Vendors an aggregate 1,166,667 common shares (the “Consideration Shares”) in total amount of $3,395,000, with 816,667 Consideration Shares issued to Advantage and 350,000 Consideration Shares issued to Nevada Sunrise. In addition, in respect of certain of the Acquired Claims, the Company has agreed to assume a 3% gross overriding royalty granted in favour of a prior owner. The Agreement required that the Vendors would not, directly or indirectly, sell or transfer any of the Consideration Shares. Railroad Valley Property On August 30, 2024, the Company signed a letter of Intent to acquire up to 85% interest in the Railroad Valley Property, located in Nye County, Nevada, from Ameriwest Lithium inc. The property comprises of 563 placer mineral claims granted by the U.S. Bureau of Land Management. The LOI with Ameriwest provides for the following terms over six years: • Initial earn-in option over three years to earn a 65% interest in the Property by expenditures in cash and shares of $450,000, plus project expenditures of USD$1.0 million; • Second Option over two years to earn-in to a 75% interest in the Property by expenditures of an additional $500,000 in shares and cash, plus project expenditures of USD$1.5 million; • Third Option over one year to earn-in to an 85% interest by US$1.0 million in cash and shares, and project expenditures of USD$1,000,000. As of December 31, 2025, the Company paid the initial $34,265 (US$25,000) non-refundable option deposit and paid the claim maintenance for $329,677 (US$239,106) to keep the claims in good standing as per the LOI. These amounts are included in prepaid expenses. 6. RELATED PARTY TRANSACTIONS AND BALANCES The Company’s related parties consist of the directors, executive officers and companie --- s owned in whole or in part by them. Key management personnel include those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of executive and non-executive members of the Company’s Board of Directors and senior officers. Compensation of Key Management Personnel For the six months ended: December 31, 2025 December 31, 2024 Management fees and salaries $ 93,706 $ 116,231 Share-based compensation – officers and management 25,188 20,136 Share-based compensation – directors 1,603 128,774 Share-based compensation – a company controlled by former CFO 234 884 Total $ 120,731 $ 266,025 PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 14 6. RELATED PARTY TRANSACTIONS AND BALANCES (continued) Other Related Parties During the six months ended December 31, 2025, the Company incurred professional fees of $39,936 (2024 - $36,188) to a company controlled by a former officer of the Company. Amounts Due to Related Parties At December 31, 2025, accounts payable and accrued liabilities include $8,028 (June 30, 2025 - $65,818) owing to directors and officers of the Company and a company controlled by an officer, former officer or director of the Company for accrued and unpaid management fees, salaries, expense reimbursements, accounting services and management services. These amounts are unsecured, non-interest-bearing and due on demand. 7. SHARE CAPITAL a) Authorized The Company is authorized to issue an unlimited number of common shares without par value. b) Issued and outstanding During the six months ended December 31, 2025 and the year ended June 30, 2025, there were no shares issued. c) Stock options The Company grants incentive stock options as permitted pursuant to the Company’s Stock Option Plan (the “Plan”), which complies with the rules and policies of the Exchange. Under the Plan, the exercise price of each option may not be less than the discounted market price (as defined). The aggregate number of common shares that may be subject to option at any one time may not exceed 10% of the issued common shares. The options are subject to vesting provisions as determined by the Board of Directors. The maximum term is 10 years. The continuity of stock options for the six months ended December 31, 2025 and June 30, 2025 is as follows: Number of Options Weighted Average Exercise Price ($) Balance, June 30, 2024 2,308,153 0.69 Expired (570,000) (0.61) Granted 800,000 0.30 Balance, June 30, 2025 2,538,153 0.59 Expired (613,333) (0.58) Granted 364,228 0.30 Balance, December 31, 2025 2,289,048 0.54 Exercisable at December 31, 2025 1,924,820 0.59 PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 15 7. SHARE CAPITAL (continued) A summary of the Company’s options outstanding as at December 31, 2025 is as follows: Expiry Date Exercise Price ($) Options Outstanding Weighted Average Remaining Life of Options (Years) Options Exercisable February 27, 2028 0.54 150,000 2.16 150,000 October 4, 2028 0.83 974,820 2.76 974,820 August 21, 2029 0.30 800,000 3.64 800,000 November 20, 2030 0.30 364,228 4.89 - 2,289,048 3.08 1,924,820 d) Share-based compensation O --- n November 20, 2025, the Company granted 364,228 stock options exercisable at a price of $0.30 per share and expires November 20, 2030. The fair value of the stock options was estimated to be $92,003 using the Black-Scholes option pricing model using the following inputs: Stock price of $0.30, exercise price of $0.30 term of 5 years, cumulative volatility of 122.84% risk free rate of 2.80%. During the six months ended December 31, 2025, the Company expensed $27,505 (2024 - $163,812) relating to stock options vested. e) Reserves As at December 31, 2025 and June 30, 2025, reserves consisted of the following: December 31, 2025 June 30, 2025 Loan forgiveness $ 2,449,536 $ 2,449,536 Stock options 866,063 1,138,100 Total reserves $ 3,315,599 $ 3,587,636 8. MANAGEMENT OF CAPITAL The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue the sourcing and exploration of mineral properties. The Company considers the items in shareholders’ equity as capital, which amounted to $35,779,018 at December 31, 2025 (June 30, 2025 - $35,769,946). There has been no change to what the Company considers capital from the prior year. The Company does not have any externally imposed capital requirements to which it is subject. The Company manages the capital structure and adjusts it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue common shares, dispose of assets or adjust the amount of cash. There has been no change to how capital is managed from the prior year. PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 16 9. FINANCIAL INSTRUMENTS Fair value As at December 31, 2025, the Company’s financial instruments consist of cash, reclamation bonds, accounts payable and accrued liabilities. IFRS 13 Fair Value Measurement establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. IFRS 13 prioritizes the inputs into three levels that may be used to measure fair value. • Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. • Level 2 – Inputs that are observable, either directly or indirectly, but do not qualify as Level 1 inputs (i.e., quoted prices for similar assets or liabilities). • Level 3 – Prices or valuation techniques that are not based on observable market data and require inputs that are both significant to the fair value measurement and unobservable. The reclamation bonds and accounts payable and accrued liabilities have carrying amounts that approximate their fair values, due to either the short-term nature of these instruments or the attached market rate of interest. The Company’s cash is carried at fair value in accordance with Level 1 of the fair value hierarchy. Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The financial instrument that potentially subjects the Company to concen --- trations of credit risk consists principally of cash. To minimize the credit risk, the Company places its cash with high credit quality financial institutions. There has been no material change to the Company’s exposure to or management of credit risk during the six months ended December 31, 2025.. Liquidity risk Liquidity risk is the risk that the Company encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset (see Note 1). The Company manages liquidity risk through the management of its capital structure, as outlined in Note 7. The Company is working to seek financing to meet its cash needs. The Company monitors its ability to meet its short-term exploration and administrative expenditure requirements by raising additional funds through share issuance when required. The Company’s accounts payable and accrued liabilities have contractual maturities of 30 days or are due on demand and are subject to normal trade terms. As at December 31, 2025, the Company had cash of $367,834 (June 30, 2025 - $620,315), to meet its current liabilities of $158,166 (June 30, 2025 - $136,175). There has been no material change to the Company’s exposure to or management of liquidity risk during the six months ended December 31, 2025. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 17 9. FINANCIAL INSTRUMENTS (continued) 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 exposed to currency fluctuations. From time to time, the Company has US dollar balances in cash, accrued receivable, reclamation bonds, accounts payable and accrued liabilities, and is therefore exposed to gains or losses on foreign exchange. A significant change in the foreign exchange rate between the Canadian dollar relative to the US dollar could have an effect on the Company’s profit or loss, financial position and/or cash flows. The Company has not hedged its exposure to currency fluctuations at December 31, 2025. At December 31, 2025, the Company, through its wholly owned subsidiaries, had a foreign currency cash balance of US$264,331 (June 30, 2025 - US$450,283), advances of US$239,106 (June 30, 2025 - US$119,553) and accounts payable and accrued liabilities of US$2,360 (June 30, 2025 - US$150,537). The Company is committed to certain property payments and exploration and evaluation expenditures that are denominated in US dollars. A 10% change in the Canadian dollar versus the US dollar would give rise to a gain/loss of approximately $18,000 (June 30, 2025 - $41,000) based on the Company’s current net exposure. In practice, the actual results may differ from this sensitivity analysis, and the difference may be material. Management considers foreign exchange to be a significant risk, and did not see a material change in the Company’s exposure to or management of this risk during the six months ended December 31, 2025. Interest rate risk Interest rate risk is the risk that the fair --- value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The interest earned on cash balances approximates fair value rates, and the Company is not at a significant risk to fluctuating interest rates. At December 31, 2025, the Company did not hold any liabilities that are subject to interest rates. The Company’s exposure to and management of interest rate risk has not changed during the six months ended December 31, 2025. Other price risk Other price risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether those changes are caused by factors specific to the individual financial instrument or it issuer or by factors affecting all similar financial instruments traded in the market. The Company’s ability to raise capital to fund exploration and evaluation activities is subject to risks associated with fluctuations in the market price of lithium. The Company closely monitors commodity prices to determine the appropriate course of action to be taken. There has been no material change to the Company’s exposure to or management of other price risk during the six months ended December 31, 2025. PURE ENERGY MINERALS LIMITED Notes to the Condensed Consolidated Interim Financial Statements For the six months ended December 31, 2025 and 2024 (Unaudited, Expressed in Canadian Dollars) 18 10. SEGMENT INFORMATION The Company operates in one reportable segment, the exploration and development of unproven exploration and evaluation assets. The Company’s primary exploration and evaluation assets are located in the US, and its corporate assets, comprising mainly cash, are located in Canada. The Company is in the exploration stage and has no reportable segment revenues from the sale of minerals or related operating results. The Corporation's total assets are segmented geographically as follows: Canada US Total As at December 31, 2025 Current assets $ 366,046 $ 386,719 $ 752,765 Exploration and evaluation assets 750,000 34,434,419 35,184,419 $ 1,116,046 $ 34,821,138 $ 35,937,184 As at June 30, 2025 Current assets $ 516,591 $ 344,098 $ 860,689 Exploration and evaluation assets - 35,181,862 35,181,862 $ 516,591 $ 35,525,960 $ 36,042,551 11. SUPPLEMENTAL CASH FLOW INFORMATION Non-cash Financing and Investing Activities December 31, 2025. June 30, 2025. Advances for exploration and evaluation assets $ (169,765) $ (197,170) There were no cash flows for interest and income taxes during the six months ended December 31, 2025, and 2024.