SEDAR Interim Financial Statements

SILVER BULLET MINES CORP. Condensed Interim Consolidated Financial Statements Three months ended December 31, 2025 and 2024 (Unaudited) (Expressed in Canadian Dollars) Notice to Reader These financial statements are being refiled as a result of an inadvertent transposition error in the total assets for the year ended June 30, 2025 disclosed as comparative figures in the Statements of Financial Position. The accompanying condensed interim consolidated financial statements have been prepared by Management of Silver Bullet Mines Corp. and have not been reviewed by the Company’s auditors. SILVER BULLET MINES CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION December 31, 2025 (Expressed in Canadian Dollars) (Unaudited) 2 December 31, June 30, 2025 2025 Assets $ $ Current assets Cash and equivalents 365,686 239,082 Miscellaneous receivables 25,434 14,973 Prepaid expenses and deposits (Note 4) 154,397 43,982 Total current assets 545,517 298,037 Property, mill and equipment (Note 5) 3,019,479 3,051,086 Total assets 3,564,996 3,349,053 Liabilities Current liabilities Accounts payable and accrued liabilities 1,476,314 1,684,306 Convertible debt (Note 6) 308,385 306,969 Note payable (Note 8) 68,531 122,788 Loan payable (Note 9) 308,385 306,9658 Total current liabilities 2,161,615 2,421,031 Non-current liabilities Convertible debentures (Note 10) - 1,007,1154 Total liabilities 2,161,615 3,428,145 Shareholders' equity Share capital (Note 12) 22,443,614 19,114,996 Contributed surplus (Note 13) 1,306,148 1,113,123 Warrants (Note 14) 1,914,237 1,534,218 Equity component of convertible promissory note (Note 7) - 81,492 Accumulated other comprehensive (loss) income 8,222 19,211 Deficit (24,268,840) (21,942,132) Total shareholders’ equity 1,403,381 (79,092) Total liabilities and shareholders’ equity 3,564,996 3,349,053 Nature of operations and going concern (Note 1) Commitments and contingencies (Notes 20) Subsequent events (Note 22) Approved by the Board of Directors “John Carter” “Peter Clausi” ____________________ _____________________ Director Director See accompanying notes to the condensed interim consolidated financial statements SILVER BULLET MINES CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS Three and six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 4 Three months ended Three months ended Six months ended Six months ended December 31, December 31, December 31, December 31, 2025 2024 2025 2024 $ $ $ $ Operating Expenses Mineral property development expense (Notes 14,15) 859,202 1,171,292 1,553,274 1,641,401 Exploration expense 18,018 16,851 35,412 31,823 General and administrative (Note 15) 175,260 143,902 329,740 275,9951 Depreciation expense 33,264 34,534 66,528 66,298 Professional fees 40,070 45,024 73,812 72,866 Finance expense 17,826 130,036 69,065 206,5377 Share-based compensation - - 795,096 - Net loss for the period 1,143,640 1,541,639 2,922,927 2,294,920 Other comprehensive income Exchange differences arising on translation of foreign operations (36,747) (201,084) (10,989) (133,246) Comprehensive loss for the period 1,106,893 1,340,555 2,911,938 2,161,684 Basic and diluted loss per share (0.01) (0.02) (0.02) (0.03) Weighted average shares outstanding 140,395,000 72,071,000 131,892,000 71,012,000 See accompanying notes to the condensed interim consolidated financial statements. SILVER BULLET MINES CORP. CONDENSED INTERIM CONSOLIDATED STATEMENT OF C --- HANGES IN SHAREHOLDERS’ EQUITY (DEFICIENCY) Three months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 5 Number of Shares Share Capital Contributed Surplus Warrants Conversion Feature Reserve Accumulated Other Comprehensive Income Accumulated Deficit Total Balance, June 30, 2024 69,939,898 $14,618,626 $ 1,166,181 $354,631 $ 123,826 $ 63,109 $(16,496,744) $ (170,371) Shares issued for cash 4,283,333 362,500 167,000 529,500 Share issue costs-cash (14,399) (14,399) Share issue costs-finders’ warrants (8,523) 8,523 - Shares issued -exercise of convertible promissory note 2,000,000 143,000 - 57,000 - - - 200,000 Shares issued- exercise of convertible debentures 312,500 25,000 - - - - - 25,000 Shares issued in lieu of interest on convertible debentures 481,967 55,426 55,426 Equity component of convertible debentures 45,000 81,492 126,492 Broker warrants-convertible debentures 8,322 8,322 Warrants expired - 258,481 (258,481) Options expired (46,000) 46,000 Loss for the period - - - - - - (2,294,920) (2,294,920) Other comprehensive loss - - - - - 133,236 - 133,236 Balance, December 31, 2024 77,017,698 $15,440,111 $ 1,120,181 $381,995 $ 205,318 $ 196,345 $(18,745,664) $ (1,401,774) Shares issued for cash 22,038,490 1,825,419 - 1,090,000 - - - 2,915,419 Share issue costs-cash - (141,424) - - - - - (141,424) Share issue costs-finders’ warrants - (64,223) - 64,223 - - - - Shares issued-exercise of convertible promissory note 4,000,000 364,000 - 36,000 - - - 400,000 Shares issued-exercise of convertible debenture 11,487,500 841,624 - - - - - 841,624 Shares issued in lieu of interest on convertible debentures - 777,670 - 122,202 - - - - - 122,202 Shares issued in lieu of interest on convertible promissory note - 1,410,407 - 211,561 - - - - 211,561 Shares issued pursuant to shares for service agreement 1,258,929 180,000 180,000 100,000 Shares issued on exercise of options 1,000,000 100,000 - - - - - Transfer from contributed surplus on exercise of options 73,900 (73,900) 6 See accompanying notes to the condensed interim consolidated financial statements. Warrants expired 38,000 (38,000) Share based compensation 66,842 66,842 Transfer equity component of convertible debenture 66,633 (66,633) Transfer of equity component of promissory note 57,193 (57,193) Loss for the period - - - - - - (3,196,468) (3,196,468) Other comprehensive income - - - - - (177,134) - (177,134) Balance, June 30, 2025 118,990,694 $19,114,996 $ 1,113,123 $1,534,218 $ 81,492 $ 19,211 $(21,942,132) $ (79,092) Shares issued for cash 6,782,143 915,000 509,250 - - - 1,424,250 Share issue costs-cash (55,258) - - - - - (55,258) Share issue costs-finder warrants (21,209) - 21,209 - - - - Shares issued- exercise of convertible debenture Shares issued in lieu of interest on convertible debentures Shares issued-exercise of warrants 11,330,000 258,675 6,607,501 1,133,000 62,082 1,226,874 - - - - - - (150,440) - - - - - - - - - 1,133,000 62,082 1,076,434 Shares issued pursuant to shares for service agreement 146,541 40,000 - - - - - 40,000 Shares issued-exercise of options 200,000 30,000 - - - - - 30,000 Transfer from contributed surplus on exercise of options 5,852 (5,852) - - - - - - Share-based compensation - - 795,096 - - - - 795,096 Transfer equity component of convertible debenture - 81,492 - - (81,492) - - - Transfer balance of convertible debenture discount (89,215) (89,215) Options expired - - (596,219) - - - 596,219 - Loss for the period - - - - - - (2,9 --- 22,927) (2,922,927) Other comprehensive income - - - - - (10,989) - (10,989) Balance, December 31, 2025 144,315,554 $22,443,614 $ 1,306,148 $1,914,237 $ - $ 8,222 $(24,268,840) $ 1,403,381 SILVER BULLET MINES CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended December 31 (Expressed in Canadian Dollars) (Unaudited) 7 See accompanying notes to the condensed interim consolidated financial statements. 2025 2024 Operating activities $ $ Net loss (2,922,921) (2,294,920) Items not affecting cash: Accretion 36,757 50,373 Depreciation 66,528 66,298 Unrealized foreign exchange 3,449 33,458 Shares for service 60,000 - Share-based compensation 795,096 - Change in non-cash working capital: Miscellaneous receivables (10,461) (42,764) Prepaid expenses (110,415) (92,304) Accounts payable and accrued liabilities (207,992) 811,032 Net cash used in operating activities (2,289,965) (1,468,727) Investing activities Additions of property, mill and equipment (20,621) (74,234) Net cash used in investing activities (20,621) (23,913) Financing activities Issuance of common shares 1,424,250 529,500 Share issue costs (55,092) (14,399) Repayment of note payable (53,182) - Exercise of warrants 1,076,434 - Exercise of options 30,000 - Convertible debentures-net - 1,107,196 Net cash provided by financing activities 2,422,410 1,622,297 Foreign exchange effect on cash and cash equivalents 14,780 51,395 Net change in cash and cash equivalents 126,604 130,731 Cash and cash equivalents, beginning of period 239,082 103,275 Cash and cash equivalents, end of period 365,686 234,006 SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 8 1. NATURE OF OPERATIONS AND GOING CONCERN Silver Bullet Mines Corp. (“Silver Bullet” or the “Company”) was incorporated on July 13, 2018, pursuant to the provisions of the Ontario Business Corporations Act. The registered address of Silver Bullet is 200-3310 South Service Road, Burlington Ontario L7N 3M6. The Company is listed on the TSX Venture Exchange (“TSX-V”) under the symbol “SBMI”. The Company trades on the OTCQB under the symbol “SBMCF” and on the Frankfurt Echange under the symbol “5L30”. The Company is engaged in the acquisition, exploration, development and extraction of natural resources, specifically precious metals in Arizona, Idaho, and Nevada. The Company’s focus is the development and operation of its King Tut Mine and Super Champ Mine located near Globe, Arizona, and the development and operation of the Washington Mine in Idaho. These consolidated financial statements have been prepared using International Financial Reporting Standards (“IFRS”) applicable to a going concern, which assumes continuity of operations and realization of assets and settlement of liabilities and commitments in the normal course of business for the foreseeable future, which is at least, but not limited to one year from the reporting date. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the end of the reporting period. These financial statements do not reflect adjustments or classifications which might be necessary if the Company was not able to continue as a going concern. The Company does not generate cash flows from operations to fund its activities --- and therefore relies principally upon the issuance of securities for financing. At the date of these unaudited consolidated financial statements, the Company does not have sufficient funds to meet its development and administrative expenses for the next twelve months. The business of mining and exploration involves a high degree of risk and there can be no assurance that exploration programs will result in profitable mining operations. The Company will require cash to meet its requirements for administrative overhead, to construct mineral processing facilities, and to conduct exploration of its mineral properties and mineral properties that may be acquired. The Company has historically relied on equity and debt placements to fund its operations and repay its liabilities. Management is actively pursuing financing and alternative funding options and is minimizing discretionary expenditures where prudent. While the Company has been successful in the past, there can be no assurance that it will be able to raise sufficient funds in the future. The Company had continuing losses for the period ended December 31, 2025 and has an accumulated deficit of $24,268,840 as at December 31, 2025 (June 30, 2025-$21,942,132). These conditions and events indicate that a material uncertainty exists that may cast significant doubt about the Company’s ability to continue as a going concern. 2. BASIS OF PRESENTATION Statement of Compliance These unaudited condensed interim consolidated financial statements for the period ended September 30, 2025 have been prepared in accordance with International Financial Reporting Standard 34, Interim Financial Reporting (“IAS 34”) using accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”), and should be read together with the Company’s audited financial statements for the year ended June 30, 2025. The Board of Directors approved the condensed interim consolidated financial statements on February 20, 2026. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 9 2. BASIS OF PRESENTATION – continued Basis of Presentation These unaudited condensed interim consolidated financial statements have been prepared on a historical cost basis, with the exception of financial instruments classified at fair value through profit or loss (“FVTPL”). In addition, these financial statements have been prepared using the accrual basis of accounting except for cash flow information. Functional and Presentation Currency The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Company. The unaudited condensed interim consolidated financial statements are presented in Canadian dollars, which is the functional currency for Silver Bullet Mines Corp. and Silver Bullet Mining Inc. The functional currency of the Company’s subsidiaries in the United States, is the United States Dollar. Basis of Consolidation These unaudited condensed interim consolidated financial statements incorporate the accounts of the Company entities controlled by the Company. Control is achieved when the Company is exposed to variable returns and has the ability af --- fect those returns through power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date at which control is transferred to the Company. Subsidiaries will be de-consolidated from the date that control ceases. Subsidiary Percentage of ownership Jurisdiction Principal activity Silver Bullet Mining Inc. 100% Canada Management activities Black Diamond Exploration Inc. 100% United States Exploration and development Silver Bullet Holdings Inc 100% United States Holding Silver Bullet Arizona Inc. 100% United States Milling and processing Silver Bullet Idaho Inc. 100% United States Exploration and development Adoption of new accounting standards At the date of the authorization of these financial statements, several new, but not effective Standards and amendments to existing Standards, and Interpretations have been published by the IASB. None of these Standards or amendments to existing Standards have been adopted early by the Company. Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement. New standards, amendments and interpretations not adopted in the current year have not been disclosed as they are not expected to have a material impact to the Company’s financial statements. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 10 3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Company’s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Title to mineral property interests Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects. Functional currency The determination of an entity’s functional currency is a key judgment based on the primary economy environment in which each entity of the Company operates. In determining the functional currency, management considers the currency that most faithfully represents the economic effects of events, conditions, future direction and investment opportunities. The Company made a determination that its functional currency of its subsidiaries is the United States dollar. Management considered all of the relevant primary and secondary factors in making this determination. Share-based compensation and warrants The compensation cost associated with stock options and warrants granted under the terms of the instrument is measured at the grant date by using the Black-Scholes option pricing model to determine fair value. The Black-Scholes model requires the use of subjective estimates, in particular for the estimated life of options and warrants an --- d the expected rate of volatility in the Company’s share price over the life of the instrument, which can materially affect the fair value estimate. The key assumptions used to derive the fair value of options granted for the periods ended December 31, 2025 and 2024, are detailed in Note 13 to the unaudited condensed interim consolidated financial statements. Commercial production The determination of when a mine is in the condition necessary for it to be capable of operating in the manner intended by management (referred to as “commercial production”) is a matter of significant judgement. In making this determination, management considers specific facts and circumstances. These factors include, but are not limited to, whether the major capital expenditures to bring the mine to the condition necessary for it to be capable of operating in the manner intended by management have been completed, completion of a reasonable period of commissioning and consistent operating results being achieved at pre-determined levels of design capacity for a reasonable period of time. The Company determined commercial production has not yet been achieved as the Company has not produced commercial grade silver dore bars. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 11 3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY – continued Income, value added, withholding and other taxes The Company is subject to income, value added, withholding and other taxes. Significant judgment is required in determining the Company’s provisions for taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. The determination of the Company’s income, value added, withholding and other tax liabilities requires interpretation of complex laws and regulations. The Company’s interpretation of taxation law as applied to transactions and activities may not coincide with the interpretation of the tax authorities. All tax related filings are subject to government audit and potential reassessment subsequent to the reporting period. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the tax related accruals and deferred income tax provisions in the period in which such determination is made. A deferred tax asset is recognized to the extent that it is probable that taxable earnings will be available against which deductible temporary differences can be utilized. Impairment of non-financial assets Assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts exceed their recoverable amounts. An impairment loss is recognized for the amount by which an asset's or cash- generating unit's carrying amount exceeds its recoverable amount. To determine the recoverable amount, management estimates the higher of fair value less costs to sell and value in use. Determining the recoverable amount of an asset requires management to make assumptions about future events and circumstances and cash flows. The actual results may vary and may cause significant adjustments to the Company's assets within the next --- financial year. Provisions and contingencies Provisions and contingencies arising in the course of operations, including provisions for restoration, rehabilitation and environmental obligations, income or other tax matters are subject to estimation uncertainty. Management uses all information available in assessing the recognition, measurement and disclosure of matters that may give rise to provisions or contingencies. The actual outcome of various provisional and contingent matters may vary and may cause significant adjustments to the Company’s assets when the amounts are determined, or additional information is acquired. 4. PREPAID EXPENSES AND DEPOSITS December 31, June 30, 2025 2025 $ $ Prepaid taxes on mineral property 49,188 11,245 Prepaid mineral property leasing fees 40,866 - Prepaid marketing costs - 17,000 Prepaid liability insurance 63,851 9,894 Other 492 5,753 154,397 43,982 SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 12 5. PROPERTY, MILL AND EQUIPMENT Land Mill and infrastructure Equipment Total Cost $ $ $ $ Balance, June 30, 2024 802,058 2,083,077 531,369 3,416,504 Additions - - 74,234 74,234 Translation adjustments 41,137 106,841 (7,244) 140,734 Balance, December 31, 2024 843,195 2,189,198 556,434 3,631,472 Additions - 19,050 56,435 75,485 Translation adjustments 8,439 21,493 3,612 33,544 Balance, June 30, 2025 799,480 2,095,008 616,481 3,510,969 Additions - - 20,261 20,261 Translation adjustments 3,692 9,674 2,749 16,115 Balance, December 31, 2025 803,172 2,104,682 639,491 3,547,345 Accumulated depreciation Balance, June 30, 2024 - 167,359 162,503 330,042 Additions - 40,442 25,856 66,298 Translation adjustments - - 19,696 19,696 Balance, December 31, 2024 - 207,981 208,055 416,036 Additions - 63,742 38,030 101,772 Translation adjustments - - 275 275 Balance, June 30, 2025 - 250,593 209,360 459,953 Additions - 39,917 26,611 66,528 Translation adjustments - - 1,385 1,385 Balance, December 31, 2025 - 290,510 237,356 527,866 Carrying amounts Balance, December 31, 2024 843,195 1,981,937 390,304 3,215,436 Balance, December 31, 2025 803,172 1,814,172 402,135 3,019,479 6. CONVERTIBLE DEBT During the 2023 fiscal year, the Company received $225,000 USD pursuant to a supply agreement from a customer to provide 500kg of silver dore bars. The advance of funds is secured by a conditional convertible debenture which is convertible into 1,370,455 common shares of the Company in the event of default under the terms of the supply agreement. The supply agreement required receipt of silver dore bars by July 4, 2023. The debenture is carried at face value and the conversion feature, which is classified as FVPL, is considered to be immaterial on initial recognition and at September 30, 2023. On July 5, 2023, the Company defaulted on the supply SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 13 6. CONVERTIBLE DEBT – continued agreement. The Company and the customer continue to negotiate an extension to the agreement. The customer has requested that conversion be deferred subject to an extension of the supply agreement. 7. CONVERTIBLE PROMISSORY NOTE During the 2023 fiscal year, the Company issued a convertible promissory note with a face value of $650,000. The unsecured promissory n --- ote bears interest at 8% per annum and matures February 9, 2024. The promissory note is convertible into 2,166,667 units of the Company with a unit consisting of one common share and one-half of one common share purchase warrant with a whole warrant exercisable at $0.35 for a period of forty-eight months from the date of issue. Values were allocated between the promissory note and the conversion feature. The valuation approach involved estimating the fair value for the promissory notes in the absence of a conversion feature. The Company estimated a market rate of interest rate of 15% for a promissory note without additional features attached. The difference between the face value and the liability component was allocated to the conversion feature. The present value of principal payments of the promissory note plus accrued interest resulted in an allocation of $589,977 for the promissory note and $60,023 to the conversion feature. Direct costs in the amount of $30,643, were allocated between the promissory note and the conversion feature on a relative fair value basis. The liability component is being accreted over the term to maturity using the effective interest method. Accretion in the amount of $nil (2024-$nil) was recorded during the period. On January 16, 2024, the Company negotiated an extension of the maturity date of convertible promissory note to June 30, 2024. In addition, the interest rate was amended to 11% per annum effective January 1, 2024, and the note is convertible into units of the Company at the rate of $0.10 per unit, with a unit consisting of one common share and one common share purchase warrant with a whole warrant exercisable at $0.35 for a period of forty-eight months from the date of issue. On April 5, 2024, the holder of the promissory note converted $50,000 of the note to 500,000 common shares and 500,000 share purchase warrants. On November 12, 2024, the holder of the convertible promissory note extended the maturity date to June 30, 2025 in exchange for a fee of $25,000 which was amortized over the extended term. During fiscal 2025, the holder of the convertible promissory note converted $600,000 of the note to 6,000,000 common shares and 6,000,000 share purchase warrants. In addition, the Company issued 1,410,407 common shares at $0.15 as consideration for accrued interest and extension fees totaling $211,561 in connection with the convertible promissory note. 8. NOTE PAYABLE During fiscal 2021, the Company issued a note payable with a face amount of $319,575 denominated in United States dollars (“USD”) ($250,000 USD) as partial consideration for the purchase of land in Arizona. The note is non-interest bearing, is unsecured, and due February 2, 2024. A gain on discounting debt in the amount of $92,038 was recognized as a reduction in the carrying value the property at the date of acquisition resulting from applying the effective interest method with an estimated market rate of interest of 12%. Accretion in the amount of $nil was recorded during the period (2024-$nil). SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 14 8. NOTE PAYABLE – continued On February 3, 2024, the Company negotiated an extension of the maturity date of the note to August 9, 2024. As consideration for the extension, the Company paid an extension fee of $20,000 USD ($27,174 CDN) which was amortized over t --- he extended term. On August 9, 2024, the Company negotiated an extension of the maturity date of the note to February 9, 2025. As consideration for the extension, the Company paid an extension fee of $20,000 USD ($26,998 CDN) which was amortized over the extended term. On February 8, 2025, the Company executed an amending agreement with the holders of the note payable whereby the Company would make five monthly payments of $40,000 USD commencing February 9, 2025 and one payment of $50,000 USD due August 9, 2025. During the fiscal year ended June 30, 2025, the Company made payments totalling $160,000 USD. During the period, the Company made a payment of $40,000 USD, and a payment of $50,000 USD is outstanding with the verbal agreement of the note holder. 9. LOAN PAYABLE During the year, the Company entered into a supply agreement with a customer for the supply of silver and/or gold dore bars. The customer has agreed to advance $350,000 USD as operating capital and the first tranche of $225,000 USD was received September 1, 2023. The second tranche of $125,000 USD is to be received upon the receipt by the customer of 500kg of silver dore bars. The $350,000 USD advance, which is secured by two pieces of equipment, has a term of five years and is non-interest bearing. Repayment at the end of the term may be in cash or silver at the option of the Company. The advance of $225,000 USD is carried at face value. 10. CONVERTIBLE DEBENTURES 2024 Series During the 2024 fiscal year, the Company issued $940,000 in convertible debentures in tranches of $1,000. The debentures have a term of three years, are unsecured, bear interest payable quarterly at 12% per annum and are convertible into common shares at $0.08, $0.10, and $0.12 during years one through three respectively. Each debenture included 10,000 detachable warrants with an exercise price of $0.14, $0.16, and $0.18 during years one through three respectively. The Company estimated a market rate of interest rate of 18% for a debenture without additional features attached. The difference between the face value and the liability component was allocated to the conversion feature. The present value of principal payments of the convertible debentures plus accrued interest resulted in an allocation of $835,367 for the debentures and $104,633 to the conversion feature. Direct costs in the amount of $16,810, were allocated between the promissory note and the conversion feature on a relative fair value basis. The conversion feature was bifurcated between equity component and warrant reserve using the Black Scholes option model resulting in $66,633 allocated to the equity component and $38,000 allocated to warrant reserve. The liability component is being accreted over the term to maturity using the effective interest method. Accretion in the amount of $37,970 (2024- $5,097) was recorded during the year. Interest in the amount of $94,635 was expensed during the 2025 fiscal year (2024-$15,167). SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 15 10. CONVERTIBLE DEBENTURES – continued 2024 Series – continued The Company could force conversion of the debentures, in whole or in part, if the closing price for its common shares exceeds $0.25 for a period of ten days. The debentures can be prepaid by the Company any time after twelve months from the issuance of the debentures. During --- the fiscal year ended June 30, 2025, all of the debenture holders converted their debt to common shares at $0.08 per share resulting in the Company issuing 11,750,000 common shares at $0.08 per share. In addition, the company issued 481,967 and 339,848 common shares at $0.115 and $0.16 respectively as payment of interest on the convertible debentures. 2025 Series During the 2025 fiscal year, the Company issued $1,138,000 in convertible debentures in tranches of $1,000. The debentures have a term of three years, are unsecured, bear interest payable quarterly at 12% per annum and are convertible into common shares at $0.10, $0.12, and $0.14 during years one through three respectively. Each debenture included 10,000 detachable warrants with an exercise price of $0.16, $0.18, and $0.20 during years one through three respectively. The Company estimated a market rate of interest rate of 18% for a debenture without additional features attached. The difference between the face value and the liability component was allocated to the equity components comprising the conversion feature and the warrants. The present value of principal payments of the convertible debentures plus accrued interest resulted in an allocation of $1,011,508 for the debentures and $126,492 to the equity components. Direct costs in the amount of $30,804, were allocated between the convertible debenture and the equity components on a relative fair value basis. The conversion feature was bifurcated between the conversion feature and warrant reserve using the Black Scholes option model resulting in $81,492 allocated to the conversion feature and $45,000 allocated to warrant reserve. The liability component is being accreted over the term to maturity using the effective interest method. Accretion in the amount of $11,333 was recorded during the period (2025-$nil). Interest in the amount of $28,859 was expensed during the period (2025-$nil). The Company could force conversion of the debentures, in whole or in part, if the closing price for its common shares exceeds $0.25 for a period of ten days. The debentures can be prepaid by the Company any time after twelve months from the issuance of the debentures. During the 2025 fiscal year, holders of convertible debentures with a face amount of $5,000, converted their debt resulting in the issuance of 50,000 common shares at $0.10 per share. In addition, the Company issued 437,584 common shares at $0.155 per share as payment of interest on the convertible debentures. During the period, holders of convertible debentures with a face amount of $1,133,000, converted their debt resulting in the issuance of 11,330,000 common shares at $0.10 per share. In addition, the Company issued 258,675 common shares at $0.24 per share as payment of interest on the convertible debentures. 11. FINANCE EXPENSE December 31, June 30, 2025 2025 $ $ Foreign exchange 3,449 1,385 Accretion expense 36,757 128,336 Interest on debt 28,859 283,142 69,065 412,863 SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 16 12. SHARE CAPITAL Authorized The Company is authorized to issue an unlimited number of common shares. Transactions fiscal 2026 On August 14, 2025, and August 19, 2025, the Company issued 5,337,143 and 1,445,000 units respectively at $0.21 per unit for gross proceeds of $1,424,250. Each unit consists of one common share and one c --- ommon share purchase warrant exercisable at $0.28 for a period of thirty-six months from the date of issue. The value of the warrants was estimated to be $509,250 using the Black-Scholes option pricing model under the assumptions detailed in Note 17 The Company incurred cash commissions of $43,379 and issued 206,567 finders warrants with an estimated fair value of $21,209 using the Black-Scholes option pricing model under the assumptions detailed in Note 17 in connection with the private placement. On August 19, 21, and 22, 2025, the Company issued 200,000, 400,000, and 400,000 common shares respectively pursuant to the exercise of warrants for cash proceeds of $160,000. On August 19, 2025, the Company issued 500,000 common shares pursuant to the conversion of $50,000 of convertible debentures issued in October 2024. On September 3, 2025, the Company issued 200,000 common shares pursuant to the exercise of options for cash proceeds of $30,000. On September 4, 2025, the Company issued 750,000 common shares pursuant to the conversion of $75,000 of convertible debentures issued in October 2024. On September 15, 2025, the Company issued 129,167 common shares pursuant to the exercise of warrants for cash proceeds of $20,667. On September 22, 2025, the Company issued 113,208 common shares pursuant to a Securities for Services consulting agreement. The amount of $30,000 was measured at fair value. On September 29, 2025, the Company issued 2,330,000 common shares pursuant to the conversion of $233,000 of convertible debentures issued in October 2024. On October 8, 2025, the Company issued 100,000 common shares pursuant to the conversion of $10,000 of convertible debentures issued in October 2024. On October 10, 2025, the Company issued 255,000 common shares pursuant to the exercise of warrants for cash proceeds of $42,050. On October 15, 2025, the Company issued 7,650,000 common shares pursuant to the conversion of $765,000 of convertible debentures issued in October 2024. On October 15, 2025, the Company issued 2,700,000 common shares pursuant to the exercise of warrants for cash proceeds of $432,000. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 17 12. SHARE CAPITAL – continued Transactions fiscal 2026 - continued On October 15, 2025, the Company issued 33,333 common shares pursuant to a Securities for Services consulting agreement. The amount of $10,000 was measured at fair value. On October 22, 2025, the Company issued 100,000 common shares pursuant to the exercise of warrants for cash proceeds of $16,000. On October 24, 2025, the Company issued 500,000 common shares pursuant to the exercise of warrants for cash proceeds of $80,000. On December 23, 2025, the Company issued 258,6757 common shares in lieu of interest on convertible debentures issued in October 2024. On December 23, 2025, the Company issued 425,000 common shares pursuant to the exercise of warrants for cash proceeds of $72,250. On December 31, 2025, the Company issued 1,373,334 common shares pursuant to the exercise of warrants for cash proceeds of $233,457. Transactions fiscal 2025 On August 7, 2024, the Company issued 250,000 common shares and 250,000 share purchase warrants pursuant to the conversion of $25,000 of the convertible promissory note. On September 16, 2024, the Company issued 500,000 common shares and 500,000 share purchase warrant --- s pursuant to the conversion of $50,000 of the convertible promissory note. On September 16, 2024, the Company issued 250,000 common shares pursuant to the conversion of $20,000 of convertible debentures. On September 27, 2024, the Company issued 62,500 common shares pursuant to the conversion of $5,000 of convertible debentures. On November 19, 2024, the Company issued 1,250,000 common shares and 1,250,000 share purchase warrants pursuant to the conversion of $125,000 of the convertible promissory note. On December 19, 2024, the Company issued 481,967 common shares in lieu of interest on convertible debentures issued in May 2024. On December 27, 2024, the Company issued 4,283,333 units for gross proceeds of $514,000. Each unit consists of one common share and one common share purchase warrant exercisable at $0.16 for a period of three years from the date of issue. The value of these warrants was estimated to be $167,00 using the Black-Scholes option pricing model under the assumptions detailed in Note 16. The Company incurred cash costs of $14,400 and issued 120,000 broker warrants with an estimated fair value of $8,523 using the Black-Scholes option pricing model under the assumptions detailed in Note 16. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 18 13. SHARE-BASED COMPENSATION The Company has a formal stock option plan under which it is authorized to grant options to directors, officers, employees, and consultants to purchase common shares of the Company. The stock option plan is a rolling plan and the maximum number of authorized but unissued shares available to be granted shall not exceed 10% of its issued and outstanding common shares. Each stock option granted is for a term not exceeding five years unless otherwise specified. Vesting terms and conditions are determined by the Board of Directors of the Company at the time of the grant at the market price of the common shares, subject to all regulatory requirements. On September 27, 2020, the Company granted 3,000,000 options exercisable at $0.30 for a five-year term. The options vested immediately. An amount of $262,000 was recognized in share-based payment expense. During fiscal 2021, the CEO of the Company granted 500,000 stock options, on shares owned by him, to certain officers of the Company exercisable at $0.16 for a period of five years in exchange for services provided to the Company. The CEO will settle the options by transferring shares of the Company held by him to the optionees. An amount of $75,000 was recognized in share-based payment expense. On October 15, 2021, the date of the reverse acquisition, the stock options were considered to be cancelled and re- issued for shares of the resulting issuer. This is a modification of a share-based payment under IFRS 2. The fair value of the options is determined on the date of the transaction, and compared to the fair value on the date immediately prior to the transaction. If there is excess fair value, the excess must be immediately recognized in share-based payment expense in accordance to the remaining vesting period. For instruments that have already vested, the additional expense is recognized immediately. An amount of $485,473 was recognized in share-based payment expense. On October 15, 2021, outstanding stock options acquired were consolidated in conjunction with the reverse acquisit --- ion on a 2.1429:1 basis resulting in 233,333 stock options exercisable at $0.21429, of which 166,666 options were exercised and 66,667 options expired, during the year. On January 5, 2022, the Company granted 428,571 options exercisable at $0.30 for a five-year term. The options vested immediately resulting in a charge of $105,623 as share-based payment expense. On December 1, 2023, the Company granted 428,571 options exercisable at $0.15 for a five-year term. The options vested immediately, resulting in a charge of $46,000 as share-based payment expense. On December 4, 2023, the Company granted 1,350,000 options exercisable at $0.15 for a five-year term. The options vested immediately, resulting in a charge of $158,000 as share-based payment expense. On May 28, 2024, the Company granted 800,000 options exercisable at $0.10 for a five-year term. The options vested immediately, resulting in a charge of $59,388 as share-based payment expense. On June 13, 2024, the Company granted 1,000,000 options exercisable at $0.10 for a five-year term. The options vested immediately, resulting in a charge of $73,900 as share-based payment expense. On February 12, 2025, the Company granted 1,000,000 options exercisable at $0.16 for a five-year term. The options vested immediately, resulting in a charge of $66,842 as share-based payment expense. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 19 13. SHARE-BASED COMPENSATION – continued On March 8, 2025, the Company granted 1,000,000 options exercisable at $0.20 for a four-week term. The options vested immediately, resulting in a charge of $4 as share-based payment expense. On August 15, 2025, the Company granted 1,000,000 options exercisable at $0.30 for 500,000 options, and exercisable at $0.40 for 500,000 options. The options have a six-month term. The options vested immediately, resulting in a charge of $12,302 as share-based payment expense. On September 19, 2025, the Company granted 4,000,000 options exercisable at $0.30 for a five year term. The options vested immediately, resulting in a charge of $782,794 as share-based payment expense. There are no unvested stock options at December 31, 2025. The following is a continuity of the changes in the number of stock options outstanding: Number of options Weighted average exercise price $ At June 30, 2024 6,578,571 0.22 Granted (428,571) (.15) At December 31, 2024 6,150,000 0.22 Expired (1,000,000) 0.19 Granted 2,000,000 0.18 Exercised (1,000,000) 0.10 At June 30, 2025 6,150,000 0.22 Expired (2,571,429) 0.30 Granted 5,000,000 0.30 Exercised (200,000) 0.15 December 31, 2025 8,378,571 0.24 Stock options outstanding and exercisable as at December 31, 2025: Exercise price Number of options Weighted average exercise price $ Weighted average remaining contractual life (years) $0.30 428,571 0.30 1.01 $0.15 1,150,000 0.15 2.93 $0.10 800,000 0.10 3.41 $0.16 1,000,000 0.16 4.12 $0.30/.40 1,000,000 0.35 0.41 $0.30 4,000,000 0.30 4.72 Total 8,378,571 0.24 3.54 The weighted average time to expiry for the options outstanding as at December 31, 2025, is 3.54 years (2024-2.61 years). The weighted average trading price of options exercised is $0.15 (2024 – nil). SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 20 --- 13. SHARE-BASED COMPENSATION - continued The fair value of stock options is estimated at the date of grant using the Black-Scholes option-pricing model using the following assumptions: 2026 2026 2025 Share price $0.265 $0.19 $0.10 Exercise price $0.30 $0.35 $0.16 Expected volatility based on comparable companies 100% 79% 103% Risk free rate 2.74% 2.72% 2.87% Expected dividend yield Nil Nil Nil Expected lives 5 years .5 years 5 years Expected forfeiture rate Nil Nil Nil The weighted average fair value per option granted during the period ended December 31, 2025 was $0.031 (2024- $nil). 14. WARRANTS The following warrants entitle the holders thereof the right to purchase one common share for each common share purchase warrant. Warrant transactions are summarized as follows: Number of Warrants Weighted Average Exercise Price $ Balance June 30, 2024 16,908,605 0.49 Issued during the period 2,000,000 0.35 Issue during the period 11,380,000 0.18 Issued during the period 4,283,333 0.16 Expired during the period (3,671,229) 0.50 Balance December 31, 2024 30,900,709 0.49 Issued during the period 4,771,660 0.22 Issued during the period 5,250,000 0.35 Issued during the period 32,930,163 0.16 Expired during the period (4,039,560) 0.30 Balance June 30, 2025 56,344,199 0.49 Issued during the period 6,782,143 0.28 Exercised during the period (6,607,501) 0.16 Balance December 31, 2025 56,518,841 0.20 The fair value of warrants is estimated at the date of issue using the Black-Scholes option-pricing model using the following assumptions: 2026 2025 Expected volatility based on comparable companies 101% 1080% Risk free rate 2.69% 3.30% Expected dividend yield Nil Nil Expected lives 3 years 2 years Expected forfeiture rate Nil Nil SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 21 14. WARRANTS – continued The following warrants are outstanding at December 31, 2025: Number of warrants Exercise price per warrant Expiry date 819,042 $0.17 January 9,2026 6,500,000 $0.35 August 11, 2026 400,000 $0.16 to $0.18 May 8, 2027 8,500,000 150,000 8,400,000 4,283,333 $0.16 to $0.18 $0.18 to $0.20 $0.18 to $0.20 $0.16 May 13, 2027 October 2, 2027 October 16, 2027 December 27, 2027 1,450,000 $0.16 January 10, 2028 14,462,663 $0.16 February 14, 2028 4,016,160 $0.22 May 20, 2028 755,500 $0.22 June 20, 2028 5,337,143 $0.28 August 14, 2028 1,445,000 $0.28 August 19, 2028 56,518,841 In addition, there are 1,280,327 broker warrants outstanding of which 21,700 are exercisable at $0.17 expiring January 9, 2026, 16,667 exercisable at $0.16 expiring May 8, 2027, 37,083 exercisable at $0.16 expiring May 13, 2027, 135,000 exercisable at $0.16 expiring October 16, 2027,120,000 exercisable at $0.16 expiring December 27, 2027, 61,500 exercisable at $0.16 expiring January 10, 2028, 601,650 exercisable at $0.16 expiring February 14, 2028, 80,160 exercisable at $0.22 expiring May 20, 2028, 205,067 exercisable at $0.28 expiring August 14, 2028, and 1,500 exercisable at $0.28 expiring August 19, 2028. 15. MINES UNDER DEVELOPMENT Arizona Buckeye Silver Mine Silver Bullet holds a lease on the Buckeye Silver Mine which is on patented land located within but separate from, the Black Diamond Property. The lease, which includes two additional non-contiguous claims, is in good standing and is subject to escalating lease payments over the next 11 years (Note 19). In addi --- tion, the lease on the Buckeye Silver Mine is subject to a 5% gross royalty return on metal production. Super Champ Mine Property On September 20, 2024, the Company entered into an agreement to process high grade mineralized material from a past producing silver mine proximate to the Company’s Buckeye Silver Mine in Arizona, on commercial terms including an option to lease the property. The private property is owned by an arm’s length third party. During Q2 of fiscal 2025, the Company exercised its option to lease the property. Terms of the lease include an indefinite term at the option of the Company, and a gross royalty on product sold. During the 2025 fiscal year, the Company acquired 11 unpatented mineral claims contiguous to the Super Champ Mine. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 22 15. MINES UNDER DEVELOPMENT – continued King Tut Mine On July 23, 2025, the Company acquired the King Tut Mine a past producing high grade gold mine, which comprises approximately 80 acres and is located on BLM land less than 50 miles from the Company’s mill site in Globe, Arizona. Expenses incurred during the periods ended December 31, 2025 and 2024 with respect to the mines in Arizona include: 2025 $ 2024 $ Lease expenses 20,921 19,543 Development activities 668,195 527,354 689,116 546,897 Idaho Washington Mine Property Silver Bullet owns a 100% interest in the Washington Mine Property which consists of 48 ha and is located in Boise County Idaho, USA. The Washington Mine Property was purchased by Silver Bullet in December 2020. Development expenses of $223,975 were incurred during the period (2024-$784,982). 16. EXPLORATION AND EVALUATION PROPERTIES Black Diamond Property Silver Bullet holds a 100% interest in the Black Diamond Property which consists of 232 unpatented mineral claims and is located in Gila County near Globe Arizona, USA. The Black Diamond Property was acquired in May 2020 through the acquisition of the shares of Black Diamond Exploration Inc. Annual payments to the Bureau of Land Management in the amount of $200 USD per claim are required to maintain the claims in good standing. Exploration and evaluation expenses incurred during the year include only land taxes in the amount of $33,743 (2024-$30,258). Nevada Property Silver Bullet holds a 100% interest in 12 unpatented mineral claims located in Esmeralda County and Nye County, Nevada, USA. The Nevada Property is subject to annual payments to the Bureau of Land Management of $200 USD per claim to maintain the claims in good standing. Exploration and evaluation expenses incurred on the Nevada Property during the year include only land taxes in the amount of $1,669 (2024-$1,565). SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 23 17. RELATED PARTY TRANSACTIONS Key Management Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, including any directors of the Company and/or their holding companies. Key management had the following transactions with the Company: • Compensation that was paid or payable to key management in the amount of $165,090 (December 31, 2024- $218,348). • Share-based compensatio --- n totalling $nil (2024-$nil) was granted to key management during the period. During the periods ended December 31, 2025 and 2024, Silver Sevens Exploration LLC, an entity controlled by the Company’s Vice President Mining, provided administrative services to facilitate payments along with providing sub- contract labour to the Company. For the period ended December 31, 2025, development costs paid to Silver Sevens Exploration LLC in connection with the Company’s mineral properties was $1,282,280 (December 31, 2024-$480,593). Included in accounts payable and accrued liabilities is an amount of $795,782 (June 30, 2025-$780,160) owing to officers of the Company. The amount is unsecured, non-interest bearing and has no fixed terms of repayment. 18. FINANCIAL RISK MANAGEMENT The Company has exposure to the following risks from its use of financial instruments: credit risk, liquidity risk, market risk, foreign currency risk, commodity price risk, interest rate risk and fair value. (a) Credit risk Cash consists of bank balances and short-term deposits maturing in one year or less. The Company manages the credit risk related to short-term investments by selecting counterparties based on credit ratings and monitors all investments to ensure a stable return, avoiding investment vehicles with higher risks. The carrying amount of miscellaneous receivables and cash represents the maximum credit exposure. The credit risk associated with miscellaneous receivables is minimized as they are receivable substantially from a government agency. (b) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they fall due. The Company manages liquidity risk through the management of it capital structure. The following table summarizes the Company’s contractual maturities and the timing of cashflows as at September 30, 2025. The amounts presented are undiscounted contractual cash flows and may not agree with the carrying amounts in the consolidated financial statements. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 24 18. FINANCIAL RISK MANAGEMENT – continued Up to 1 year $ 1 to 5 years $ Total $ Accounts payable and accrued liabilities 1,476,314 - 1,476,314 Convertible debt 308,385 - 308,385 Note payable 68,531 - 68,531 Loan payable 308,385 - 308,385 2,161,615 - 2,161,615 (c) Market risk Market risk is the risk that changes in market factors, such as foreign exchange rates, commodity prices, and interest rates and liquidity will affect the Company’s value of financial instruments. The objective of market risk management is to mitigate risk exposures within acceptable limits, while maximizing returns. i. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s interest rate risk is minimal as there are no variable rate interest-bearing outstanding debt. The Company has not entered into any interest rate swaps or other active interest rate management programs at this time. ii. Commodity price risk The ability of the Company to develop its mineral properties and the future profitability of the Company is directly related to the market price of precious metals. The Company closely monitors commodity prices to determine the appropriate cour --- se of action to be taken. Based on management’s knowledge and expertise of the financial markets, the Company believes that commodity price risk is low as the Company is not yet a producing entity iii. Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows will fluctuate as a result of changes in foreign currency exchange rates. The Company is exposed to foreign currency fluctuations as certain transactions are denominated in United States dollars. Should the Canadian dollar strengthen or weaken 10% vis-à-vis the United States currency, then a translation gain or loss of approximately $74,000 (2024-$149,000) would arise and would be recorded as a current expense. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 25 18. FINANCIAL RISK MANAGEMENT - continued The table shows the balances held in US dollars: USD CAD December 31, 2025 $ $ Cash and cash equivalents 37,944 52,006 Prepaids and deposits 100,580 137,856 Accounts payable 177,138 242,786 Note payable 50,000 68,531 Convertible debt 225,000 308,385 Loan payable 225,000 308,385 Net exposure (538,614) (738,224) (c) Market risk – continued iii. Foreign currency risk - continued USD CAD December 31, 2024 $ $ Cash and cash equivalents 1,298 1,868 Prepaids and deposits 115,334 178,455 Accounts payable and accrued liabilities 464,159 667,878 Note payable 250,000 359,726 Convertible debt 225,000 323,800 Loan payable 225,000 323,753 Net exposure (1,047,527) (1,494,834) (d) Fair value The fair value of cash and cash equivalents, receivables and payables approximate their carrying amounts due to their short-term nature. The fair value of the note payable approximates its carrying amount. 19. CAPITAL MANAGEMENT The Company manages its shareholders’ equity as capital, making adjustments based on available funds, to support the acquisition, exploration and development of mineral properties. The Board of Directors does not establish quantitative return on capital criteria for management but rather relies on the expertise of the Company’s management to sustain future development of the business. The properties to which the Company currently has an interest are in the exploration and development stage and as such, the Company is dependent on external financing to fund its activities. In order to carry out the planned exploration and development as well as satisfy administrative costs, the Company will spend its existing working capital and raise additional funds as needed. The Company will continue to assess new properties should sufficient geological or economic potential be demonstrated and if the Company has adequate financial resources to do so. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 26 19. CAPITAL MANAGEMENT – continued Management reviews its capital management approach on an ongoing basis and believes that this approach is reasonable given the current size of the Company. The Company is not subject to externally imposed capital requirements. The Company’s objective when managing capital is to safeguard the Company’s ability to continue as a going concern. The Company considers its capital to be equity, which comprises share capital, contributed surplus and deficit, which at December 31, 20 --- 25, totaled $1,403,381 (June 30, 2025 - $(79,072)). There were no changes in the Company’s approach to managing capital during the period ended December 31, 2025 and the year ended June 30, 2025. 20. COMMITMENTS AND CONTINGENCIES The Company conducts its operations so as to protect public health and the environment and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations. Buckeye Lease Agreement The Buckeye Silver Mine is situated on patented land and is subject to a lease agreement under which the Company is obligated to make lease payments on July 9th each year through 2036 as follows: Payment Date USD $ CAD $ 2025 60,000 82,240 2026 65,000 89,090 2027 70,000 95,940 2028 75,000 102,800 Thereafter 675,000 925,160 945,000 1,295,230 Lease payments from July 9, 2030 onward are payable at market rates to be negotiated which have been estimated at $85,000 USD ($116,500) per annum based on the immediately preceding period. SILVER BULLET MINES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Six months ended December 31, 2025 and 2024 (Expressed in Canadian Dollars) (Unaudited) 27 21. SEGMENTED INFORMATION The Company operates in one segment being the acquisition, exploration and development of exploration and evaluation properties in the United States of America. The Company is listed in Canada. As at December 31, 2025 Canada $ United States $ Total $ Current assets 542,522 2,995 545,517 Property, mill and equipment - 3,019,479 3,019,479 Total assets 542,522 3,022,474 3,564,996 Total liabilities 1,850,299 311,316 2,161,615 As at December 31, 2024 Canada United States Total Current assets 407,036 45,189 452,225 Property, mill and equipment - 3,215,436 3,215,436 Total assets 407,036 3,260,625 3,667,661 Total liabilities 4,107,419 961,956 5,069,375 22. SUBSEQUENT EVENTS On January 6, 2026, the Company issued 310,000 common shares pursuant to the exercise of warrants for cash proceeds of $52,700. On January 9, 2026, the Company issued 466,667 common shares pursuant to the exercise of warrants for cash proceeds of $79,333. On January 9, 2026, 42,375 warrants and 21,700 broker warrants expired unexercised. On January 19, 2026, the Company acquired the Columbia Mine and the Gold Queen Mine for nominal cash consideration. On January 22, 2026, the Company paid $25,000 USD against the note payable. On January 30, 2026, the Company issued 2,625,000 common shares pursuant to the exercise of warrants for cash proceeds of $456,000.