SEDAR Interim Financial Statements

Mazarin Inc. Condensed Interim Consolidated Financial Statements (Unaudited) September 30, 2025 (In thousands of Canadian dollars) Mazarin Inc. Condensed Interim Consolidated Statements of Financial Position (unaudited) (in thousands of Canadian dollars) As at As at September 30, December 31, 2025 2024 Assets $ $ Current assets Cash 864 909 Restricted cash 1,416 1,695 Restricted cash related to restructuring of a subsidary (note 12) 2,778 - Accounts receivable (note 4) 4,040 5,277 Income tax recoverable 899 891 Prepaid expenses 251 162 Current portion of investments (note 5) 1,263 1,369 11,511 10,303 Non-current assets Investments (note 5) 32,292 31,674 Security deposits 339 242 Property, plant and equipment 1,267 1,229 33,898 33,145 Total assets 45,409 43,448 Liabilities Current liabilities Accounts payable and accrued liabilities (note 6) 6,616 2,869 Income tax payable 283 678 Current portion of litigation-related liabilities (note 7) 3,170 3,661 Restructuring liabilities of a subsidary (Note 12) 13,967 - Current portion of deferred revenue 59 59 24,095 7,267 Non-current liabilities Litigation-related liabilities (note 7) 28,025 26,129 Deferred revenue 145 147 Security deposit payable 284 213 Post-employment benefit liabilities 510 510 Deferred tax liabilities 118 118 29,082 27,117 Total liabilities 53,177 34,384 Equity Equity attributable to the shareholders of the Corporation Capital stock (note 9) 4,567 4,567 Contributed surplus 7,537 7,494 Deficit (15,433) (4,448) (3,329) 7,613 Non-controlling interests (4,439) 1,451 Total equity (7,768) 9,064 Total liabilities and equity 45,409 43,448 General information and going concern (note 1) The accompanying notes are an integral part of these condensed interim consolidated financial statements. 2 Mazarin Inc. Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Loss (unaudited) (in thousands of Canadian dollars, except share and per share data) Three months ended 2025 2024 2025 2024 $ $ $ $ Revenue Revenue from mining properties (note 8a) 625 1,086 1,272 4,668 Investment income (note 8b) 1,657 1,325 2,818 3,195 Other 5 4 484 100 2,287 2,415 4,574 7,963 Operating expenses Mining properties ownership and management expenses (note 8c) 734 877 2,205 2,539 Administrative expenses (note 8d) 442 367 1,489 1,203 Litigation management fees 1,477 40 2,457 1,581 Restructuring fees of a subsidiary 9,822 - 15,298 - 12,475 1,284 21,449 5,323 Income (loss) before income taxes (10,188) 1,131 (16,875) 2,640 Income tax - 359 - 359 Actuarial gain on benefits Net income (loss) and Comprehensive income (loss) for the period (10,188) 772 (16,875) 2,281 Net income (loss) and Comprehensive income (loss) attributable to: Shareholders of the Corporation (6,560) 802 (10,985) 1,694 Non-controlling interests (3,628) (30) (5,890) 587 (10,188) 772 (16,875) 2,281 Basic and diluted net income (loss) per share attribuable to the shareholders of the Corporation (0.21) 0.02 (0.22) 0.03 The accompanying notes are an integral part of these condensed interim consolidated financial statements. Nine months ended September 30, September 30, 3 Mazarin Inc. Condensed Interim Consolidated Statements of Changes in Equity (unaudited) (in thousands of Canadian dollars) Non- Capital Contributed controlling Total stock Surplus Deficit Total interests Equity $ $ $ $ $ $ Balance as at January 1, 2024 4,468 7,493 (5,873) 6,088 1,201 7,289 Loss and Comprehensive loss for the period - - 1,694 1,694 587 2,281 Share-based --- compensation - 32 - 32 - 32 Share options exercised 99 (48) - 51 - 51 Balance as at September 30, 2024 4,567 7,477 (4,179) 7,865 1,788 9,653 Balance as at January 1, 2025 4,567 7,494 (4,448) 7,613 1,451 9,064 - Loss and Comprehensive loss for the period - - (10,985) (10,985) (5,890) (16,875) - Share-based compensation - 43 - 43 - 43 Share options exercised - - - - - - Balance as at September 30, 2025 4,567 7,537 (15,433) (3,329) (4,439) (7,768) Attributable to shareholders of the Corporation 4 Mazarin Inc. Condensed Interim Consolidated Statements of Cash Flows (unaudited) (in thousands of Canadian dollars) 2025 2024 $ $ Cash flows from Operating activities Net income (loss) for the period (16,875) 2,281 Ajustments for : Post-employment benefits - - Share-based compensation 43 32 Depreciation of property, plant and equipment 70 64 Gains on sale of investments (1,023) (195) Proceeds on disposal of assets held for sale - - Net change in fair value of investments (1,272) (2,578) Net change in litigation-related liabilities 1,400 1,296 (17,657) 900 Changes in items of working capital Accounts receivable 1,237 (2,025) Income taxes recoverable - - Prepaid expenses (89) (141) Accounts payable and accrued liabilities 3,727 39 Deferred revenue (45) (45) Income tax payable (377) (45) 4,453 (2,217) Net cash generated in (used in) operating activities (13,204) (1,317) Investing activities Changes in restricted cash 279 403 Restricted cash related to the restructuring of a subsidiary (2,778) - Purchase of investments (4,929) (12,292) Proceeds from sale of investments 6,711 12,733 Purchase of property, plant and equipment (107) (78) Proceeds on disposal of assets held for sale - - Security deposits receivable (98) (91) Net cash generated in (used in) investing activities (922) 675 Financing activities Share options exercised - 51 Loan related to the restructuring of a subsidiary 13,967 - Long term debt - 1 Security deposits payable 114 71 Net cash generated by financing activities 14,081 123 Net change in cash during the period (45) (519) Cash - Beginning of the year 909 1,373 Cash - End of the period 864 854 Supplementary information Interest received 224 205 Dividends received 234 254 The accompanying notes are an integral part of these condensed interim consolidated financial statements. Nine months ended September 30, 5 Mazarin Inc. Notes to Condensed Interim Consolidated Financial Statements (unaudited) (in thousands of Canadian dollars, unless otherwise stated) 1. General Information and Going Concern The Corporation is governed by the Business Corporations Act (Quebec) and is domiciled in Canada. The address of its head office is 696, Monfette Street East, Thetford Mines, Quebec. Its main mission consists in maintaining its mining assets and maximizing their value. The Corporation is also involved in the management of various litigation cases relating to asbestos, which arose from operations in the past. A subsidiary of the Company, Asbestos Corporation Limited (“ACL”), which accounts for nearly 100% of the Company’s revenues, is facing numerous litigation cases resulting from its previous asbestos-related operations, as described in note 18 to the 2024 audited consolidated financial statements, and settlement thereof could entail the use of the Corporation’s liquid assets. Furthermore, the Corporation is exposed to certain liquidity risks due to additional operating costs and to the non-recurring nature of some of its revenue, thus casting s --- ignificant doubt upon the validity of the going concern assumption. In fact, the Corporation presently settles its operating costs through revenue derived mostly from mining assets, more specifically, warehouse leasing and related royalties. Management continues to study the various possibilities of raising its revenues derived from mining assets in order to increase the Corporation’s cash flows, namely through the setting-up of partnerships to develop its assets and the upgrading of the tailings. However, there is no assurance that management will be successful in these actions. All these factors indicate a material uncertainty that may cast significant doubt on the ability of the Corporation and its subsidiaries to continue as a going concern. On March 19, 2008, 9075-6453 Québec Inc. (“9075”), a subsidiary of the Company, made an assignment of its assets under the Bankruptcy and Insolvency Act. The Company held, and continues to hold, security interests over all of the movable and immovable property of 9075. On May 5, 2025, ACL announced that the Québec Superior Court (the “Court”) issued an initial order against it under the Companies’ Creditors Arrangement Act (“CCAA”). It is currently not possible to accurately measure the effects of this situation on the Company. See note regarding the insolvency of a subsidiary and regarding risks associated with the restructuring of a subsidiary. The unaudited condensed interim consolidated financial statements for the third quarter ended September 30, 2025, have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS accounting standards) applicable to the going concern assumption. If the going concern assumption is not appropriate, significant adjustments may be required to the carrying value and classification of assets, liabilities and expenses presented in these consolidated financial statements. The condensed interim consolidated financial statements of Mazarin inc. for the third quarter ended September 30, 2025 as well as the corresponding comparative data, have not been subject to review by the Corporation’s independent auditors. 6 Mazarin Inc. Notes to Condensed Interim Consolidated Financial Statements (unaudited) (in thousands of Canadian dollars, unless otherwise stated) 2. Significant Accounting Policies 3. Recent accounting standards not yet adopted These condensed interim consolidated financial statements are management’s responsibility and were approved by the Board of Directors on November 24, 2025. These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), applicable to the preparation of condensed interim consolidated financial statements, including IAS 34 – Interim financial reporting. Accordingly, these are condensed consolidated financial statements since they do not include all the information required under IFRS for annual consolidated financial statements. These condensed interim consolidated financial statements should be read in conjunction with the Corporation’s 2023 audited consolidated financial statements. IFRS 18 Presentation and Disclosure in Financial Statements The International Accounting Standards Board (IASB) published IFRS 18 in April 2024, which will replace the current IAS 1 Presentation of Financial Statements. IFRS 18 --- provides guidelines on presentation and disclosure requirements for financial statements to ensure they provide relevant information that faithfully represents an entity's assets, liabilities, equity, income and expenses. The Corporation is currently evaluating the impact of adopting the new IFRS 18 standard, which will be applicable for fiscal years starting on or after January 1, 2027. IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial Instruments In May 2024, the IASB updated IFRS 9 and IFRS 7 regarding the classification and measurement of financial instruments. The amendments clarify the recognition and derecognition dates for certain financial assets and liabilities, provide guidance for determining whether a financial asset meets the criteria of solely payments of principal and interest, introduce new disclosure requirements, and improve the disclosure of certain financial instruments. The Corporation is currently evaluating the impact of adopting the amendments to IFRS 7 and IFRS 9, which will be applicable for fiscal years starting on or after January 1, 2026. 7 Mazarin Inc. Notes to Condensed Interim Consolidated Financial Statements (unaudited) (in thousands of Canadian dollars, unless otherwise stated) 4. Accounts Receivable As at As at September 30, December 31, 2025 2024 $ $ Trade receivables 1,195 1,336 Amounts receivable from the government 77 471 Amounts receivable from insurers 2,768 3,470 4,040 5,277 5. Investments Cost Fair value $ $ Investments* Treasury bills - - Government bonds 5,866 6,107 Shares 10,603 14,632 Mutual funds 11,151 12,816 27,620 33,555 Less : Current portion 1,263 Non-current portion 32,292 Cost Fair value $ $ Investments* Treasury bills 538 565 Government bonds 7,220 7,570 Shares 8,738 12,139 Mutual funds 11,891 12,769 28,387 33,043 Less : Current portion 1,369 Non-current portion 31,674 As at September 30, 2025 As at December 31, 2024 8 Mazarin Inc. Notes to Condensed Interim Consolidated Financial Statements (unaudited) (in thousands of Canadian dollars, unless otherwise stated) 6. Accounts Payable and Accrued Liabilities As at As at September 30, December 31, 2025 2024 $ $ Fees and compensation related to litigation payable 791 1,300 Trade payables and accrued expenses 1,416 1,569 Accrued fees related to restructuring of a subsidiary 4,409 - 6,616 2,869 7. Litigation-related liabilities * $ Balance as at January 1, 2024 26,234 Additional provisions 5,951 Utilized during the perod (2,395) Balance as at December 31, 2024 29,790 Current portion 3,661 Non-current portion 26,129 Balance as at January 1, 2025 29,790 Additional provisions 1,497 Utilized during the period (92) Balance as at September 30, 2025 31,195 Current portion 3,170 Non-current portion 28,025 Balance as at September 30, 2025 31,195 * Management believes that there is some uncertainty about the timing of the disbursements associated with litigation-related liabilities. * The use of an amount of $28,231, being US $20,279 ($26,774, being US $18,607 as at December 31, 2024) is exclusively restricted to the settlement of expenses arising from asbestos lawsuits. Moreover, an amount of $4,212 ($5,157 as at December 31, 2024) shall be used only for the settlement of expenses arising from asbestos lawsuits and for the maintenance of the corporate existence of the Corporation and its subsidiaries. 9 Mazarin Inc. Notes to Condensed Interim Consolidated Financial Statements (unaudited) (in thousands of Canadian dollars, unless ot --- herwise stated) 8. Additional Disclosures on the Statements of Earnings 2025 2024 2025 2024 $ $ $ $ a) Revenue from mining properties Building rental 206 173 627 573 Sale of land - 7 - 395 Royalties 235 327 391 512 Demonstration plant revenues 74 565 141 1,608 Gains from work on mine sites 109 12 109 1,577 Other revenue 1 2 4 3 625 1,086 1,272 4,668 b) Other investment incomes Interest revenue 80 81 239 214 Dividends 96 66 284 208 Realized gains on sale of investments 261 (5) 1,023 195 Net change in fair value of investments 1,220 1,183 1,272 2,578 1,657 1,325 2,818 3,195 c) Mining properties ownership and management expenses Salaries, wages and employee benefits 16 6 60 20 Depreciation of property, plant and equipment 24 21 70 64 Property taxes 71 65 212 188 Maintenance and repairs 200 195 689 564 Mining site monitoring 60 30 104 92 Demonstration plant operations 323 471 773 1,427 Other 40 89 297 184 734 877 2,205 2,539 d) Administrative expenses Salaries, wages and employee benefits 236 133 674 399 Share-based compensation expense 14 12 43 32 Professional fees 144 186 553 628 Other 48 36 219 144 442 367 1,489 1,203 Three months ended Nine months ended September 30, September 30, 10 Mazarin Inc. Notes to Condensed Interim Consolidated Financial Statements (unaudited) (in thousands of Canadian dollars, unless otherwise stated) 9. Equity Authorized Unlimited number of shares, without par value, of the following classes: Common shares Preferred shares, rights, privileges and restrictions to be determined by the Board of Directors before their issuance. Issued and fully paid 50,254,684 common shares as at June 30, 2025 (50,254,684 as at December 31, 2024) valued at $4,567 ($4,567 as at December 31, 2024). 10. Financial Instrument Fair value The carrying amount of cash and restricted cash and cash equivalents, accounts receivable, security deposits, accounts payable and accrued liabilities approximate their fair value due to their short-term maturity or current market rates. Investments are accounted for at fair value using bid prices. 11 Mazarin Inc. Notes to Condensed Interim Consolidated Financial Statements (unaudited) (in thousands of Canadian dollars, unless otherwise stated) Level 1 Level 2 Level 3 Total $ $ $ $ Assets at fair value through profit or loss Treasury bills - - - - Government bonds 6,107 - - 6,107 Shares 13,530 - 1,102 14,632 Mutual funds 8,604 4,212 - 12,816 28,241 4,212 1,102 33,555 Level 1 Level 2 Level 3 Total $ $ $ $ Assets at fair value through profit or loss Treasury bills 565 - - 565 Government bonds 7,570 - - 7,570 Shares 11,037 - 1,102 12,139 Mutual funds 7,612 5,157 - 12,769 26,784 5,157 1,102 33,043 As at September 30, 2025 As at December 31, 2024 The following tables show the classification of the Corporation's financial instruments in a hierarchy that is based on significance of the inputs used in making the measurements. The levels in the hierarchy are: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). 12 Mazarin Inc. Notes to Condensed Interim Consolidated Financial Statements (unaudited) (in thousands of Canadian dollars, unless otherwise stated) 11. --- Subsidiary insolvency 12. Restructuring fees and related loan On May 5, 2025, ACL announced that the Court issued an initial order against it under the Companies’ Creditors Arrangement Act (“CCAA”). Raymond Chabot Inc. was appointed as monitor in these proceedings (the “Monitor”), assisting ACL in its restructuring efforts and reporting to the Court. On May 15, 2025, the Court issued an amended and restated initial order, which, among other things, provides for a stay of proceedings against ACL until September 5, 2025, inclusively. In the same order, the Court also approved interim financing of up to US$20 million in connection with its restructuring efforts. This interim financing is primarily allocated to the payment of professional fees of the legal counsel of the stakeholders involved in ACL’s restructuring. On September 4, 2025, the Court issued an order extending the effect of the Initial Order until December 15, 2025, thereby prolonging the stay of proceedings against the Company until that date. On October 29, 2025, the United States Bankruptcy Court for the Southern District of New York issued an order recognizing the validity of the CCAA proceedings in the United States and extending the Monitor’s protection in the United States. Certain parties in the United States have appealed the Recognition Order, and ACL intends to contest that appeal. Repayment of the interim financing is secured by a super-priority charge over ACL’s assets. This charge ranks subordinate to that of the Company, which holds a universal security interest over ACL’s assets. As part of the CCAA proceedings relating to ACL, ACL incurred restructuring costs totaling $15.3 million, primarily related to professional fees. These costs are funded from the interim financing described in Note 11. These costs are presented separately in the statement of income under the heading “Restructuring fees.” To finance these costs, the subsidiary entered into two borrowings: -The interim financing, being a loan of US$20 million (approximately C$27 million) from an insurer, bearing interest at the U.S. prime rate, as published by the Wall Street Journal, plus 1% (8.25% as at September 30, 2025). An amount of US$9.5 million had been disbursed (approximately C$13.6 million as at September 30, 2025). The interim financing ranks subordinate to the C$28 million promissory note issued by ACL in favor of the Company (the “Note”), which is secured universal security interest over all of ACL’s assets. The interim financing is due no later than May 15, 2026, or pursuant to the restructuring plan to be filed with the Court. -A promissory note of US$300k (approximately C$418k as at September 30, 2025) issued in favor of certain ACL insurers. The note is repayable on demand, bears no interest, and may be repaid at any time, in whole or in part, without penalty. Pursuant to the terms of the note, the funds were deposited with a U.S. law firm, acting as trustee, for the benefit of ACL. Notwithstanding this deposit, the amount remains a liability of ACL to the lenders. These borrowings are presented in the statement of financial position under “Current liabilities.” The details are presented in the table below. The use of funds is supervised by the Monitor. As at the reporting date, the balance of restricted cash related to the restructuring amounted to $2.8 million and is presented under restricted cash. 13 Mazarin Inc. Notes to Condensed Interim Consolidated Financial Statements (unaudited --- ) (in thousands of Canadian dollars, unless otherwise stated) 12. Restructuring fees and related loan (continued) As at September 30, 2025 Opening balance of liability - Additional borrowing 13,608 Interest for the period 359 Repayment - Closing balance of liability 13,967 Opening balance of restricted cash - Increase from additional borrowing 13,608 Interest for the period 59 Disbursement related to restructuring fees (10,889) Closing balance of restricted cash 2,778 13. Risk Related to the Restructuring of a Subsidiary 14. Termination of the Pension Plan SAL’s revenues represent nearly 100% of the Company’s revenues. The risks to Mazarin related to the restructuring of Asbestos Corporation Limited include, among others, the following: - if SAL’s assets are liquidated and not acquired by Mazarin, it remains possible that Mazarin’s receivable may be only partially recovered if the consideration for SAL’s assets is less than the amount of Mazarin’s receivable from SAL; - there can be no guarantee that the acquisition by the Company of SAL’s assets will have an accretive effect on the Company’s operations; - any gain recognized by Mazarin or other tax consequences arising from the acquisition of SAL’s assets or from its restructuring could have a material adverse effect on Mazarin’s financial position. The Company’s defined benefit pension plan, covering the employees of Asbestos Corporation Limited, was terminated on December 31, 2024. In connection with the termination, Asbestos Corporation purchased annuities for all participants, thereby fully settling its obligations to the affected employees. As a result of this transaction, the Company no longer has any financial commitments related to this plan. The settlement resulted in a surplus of $465, which was received by Asbestos Corporation, as Asbestos Corporation Limited was the only entity that had employees participating in this plan. 14