Annual Report for Fiscal Year Ending July 31, 2026 (Form 10-K)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion provides information regarding the results of operations for the years ended July 31, 2026 and 2025 and our financial condition, liquidity and capital resources as of July 31, 2026 and July 31, 2025.

The following discussion and analysis should be read in conjunction with the information set forth in our audited financial statements and the notes thereto as of and for the years ended July 31, 2026 and July 31, 2025.

Results of Operations

For the Years Ended July 31, 2026 and 2025

Our operating results for the years ended July 31, 2026 and 2025 are summarized as follows:

For the notes referenced above, please see our audited financial statements and the notes for the years ended July 31, 2026 and July 31, 2025, included below under Item 8.

Our operating expenses increased during the year ended July 31, 2026 compared to the prior year primarily as a result of increased activities by our Company and higher budget. These activities include mineral exploration, consulting, filing and regulatory, general and administrative, and professional fees driven by the need for expenses related to Vested Rights and Use Permit applications and hearings.

As a result of the ongoing activities, significant expenses during the year ended July 31, 2026 include:

• Increase in mineral exploration costs to $1,007,029 (2025 - $96,520) of which $601,102 related to the preparation and commencement of the 2026 drilling program;
• Increase in share-based payments to $1,083,726 (2025 - $697,122) for the grant of options, restricted share units, and deferred share units pursuant to our long term incentive plan to incentivize management and certain consultants;
• Increase of professional fees incurred to $1,636,655 (2025 - $549,923) related to the Vested Rights litigation and CEA dispute;
• Increase in consulting fees to $304,244 (2025 - $221,925); Consulting fees include a termination payment of $161,700 made to the previous CEO.
• Increase in salaries paid to $128,709 (2025 - $NIL), as of our current CEO is an employee of the Company (the previous CEO was providing services through a consulting agreement);
• Other corporate costs including general and administrative expenses, director fees, regulatory, and shareholder relations costs have been generally consistent year over year.
• Significant non-operating items for the fiscal year ended July 31, 2026, include gains on accounts payable settlements ($187,396) and other income of $288,137 (mainly from interest on short term liquid investments - $185,200 and interest on note receivable for $62,500)
• Significant non-operating items for fiscal year ended July 31, 2025, include write down of the value of the drilling equipment (loss of $411,530), note receivable sold at a discount to generate cash (loss of $155,727), and an accounting loss recognized with the repayment of the loans in May 2025 on the value of the warrants recorded as loan issuance costs (loss of $312,939).

Liquidity and Capital Resources

As of July 31, 2026, the Company had $6,984,508 in cash and cash equivalents, $8,481,635 in current assets, $8,679,134 in total assets, $906,130 in current liabilities and $906,130 in total liabilities, working capital surplus of $7,575,505, and an accumulated deficit of $37,744,863.

During the year ended July 31, 2026, the Company used $3,259,615 in net cash on operating activities, compared to $1,169,386 in net cash used on operating activities during the prior year. The higher amount of net cash used in operating activities during the current year was due mainly to higher professional fees and associated costs related to the Use Permit and Vested Rights petition as well as 2026 drilling program related costs.

During the year ended July 31, 2026, the Company received $Nil from investing activities. During the prior year, the Company generated net cash of $2,612,699 from sales of parcels of land.

During the year ended July 31, 2026, the Company received cash of $6,976,437 (2025 - $ 2,990,936) from financing activities related to the private placements. Stock options and warrant exercises added $663,614, respectively $48,822 to treasury during the year ended July 31, 2026 ($Nil in 2025). During the year ended July 31, 2026, the Company paid $228,098 to close a line of credit facility. During the year ended July 31, 2025, the Company had a $500,000 cash intake from a loan and cash outflow of $2,394,570 related to repayments of outstanding loans.

The Company expects to operate at a loss for at least the next 12 months, generating no revenues while continuing its drilling program and the I-M Mine vested rights litigation. On October 24, 2025, the Company raised $7,000,000 through issuance of securities. Based on current working capital available, management estimates that it does have sufficient funds to continue as a going concern. It has no agreements for additional financing and cannot provide any assurance that additional funding will be available to finance its operations on acceptable terms in order to enable it to carry out its business plan long term. There are no assurances that the Company will be able to complete further sales of its common stock or any other form of additional financing.

For an update on litigation efforts and results during the fiscal year ended July 31, 2026, please see Item 1 of this 10K report.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.