The following table sets forth a reconciliation of the statutory federal income tax for the years ended December 31, 2024 and 2023:

	Years Ended December 31,
	2024		2023
	$		$
Income tax benefit computed at federal statutory rates	(7,117,398	)	(7,909,971	)
Non-deductible expenses	5,452		4,910
Non-deductible stock-based compensation	472,590		(25,887	)
Change in valuation allowance	6,609,916		6,741,327
Other	21,605		(27,708	)
Total tax benefit	(7,835	)	(1,217,329	)

The tax effects of the temporary differences between reportable financial statement income and taxable income are recognized as deferred tax assets or liabilities.

Management has established a valuation allowance against any portion of deferred tax assets because it is more likely than not the deferred income tax asset will not be realized.

	Balance at Beginning of Fiscal Year	Charged to Costs and Expense	Balance at End of Fiscal Year
	$	$	$
Reserves and allowances deducted from asset accounts:
Valuation allowance for deferred tax assets
Year ended December 31, 2024	10,256,221	6,609,916 ^(a)	16,866,137
Year ended December 31, 2023	3,514,894	6,741,327 ^(a)	10,256,221

(a) Primarily associated with net operating losses generated and current year changes in U.S. federal temporary differences

Significant components of our deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows:

	December 31, 2024		December 31, 2023
Deferred tax assets:	$		$
Net operating losses	10,066,561		8,287,041
Stock-based compensation	2,873,832		2,896,753
Property and equipment	33,476		-
Mineral properties	3,859,034		-
Other	33,234		-
Total	16,866,137		11,183,794
Less: valuation allowance	(16,866,137	)	(10,256,221	)
Total deferred tax assets	-		927,573

Deferred tax liability:
Property and equipment	-		5,942
Mineral properties	-		(1,043,466	)
Other	-		24,619
Total deferred tax liabilities	-		(1,012,905	)

Net deferred tax liability	-		(85,332	)

The Company maintains gross federal net operating loss ("NOL") carry forwards of approximately $47.7 million ($10.1 million tax-effected) as of December 31, 2024. Of the total gross amount, approximately $8.4 million ($1.8 million tax-effected) will begin to expire in 2027, as they were incurred prior to 2018. The NOLs generated in 2018 - 2024 can be carried forward indefinitely under the provisions of the Tax Cuts and Jobs Act.

There are no unrecognized tax benefits as of December 31, 2024 and 2023. We file income tax returns in the United States federally and in one state jurisdiction and in Canada. The Company has not been subjected to tax examinations for any year. As of December 31, 2024, tax years 2021 through 2024 are open to examination by the tax authorities in the U.S.