16. INCOME TAXES

a. Rate reconciliation

The income tax expense or recovery reported by the Company differs from the amounts obtained by applying statutory rates to the loss and comprehensive loss. A reconciliation of the income tax provision computed at statutory rates to the reported income tax provision is provided below:

For the year ended December 31,	2024		2023

Statutory tax rate	27.00%		27.00%

Loss before taxes	6,921,830		3,338,299

Income tax recovery calculated at statutory rate	1,869,000		901,000

Non-deductible expenditures	(658,000	)	(297,000	)
Amounts expensed for tax purposes only	884,000		226,000
Unrecognized tax benefit	(5,267,000	)	(830,000	)
Adjustment of prior year tax estimates and other	3,172,000		-

INCOME TAX	-		-

b. Deferred income tax asset and liabilities

The approximate tax effect of each item that gives rise to the Company's unrecognized deferred tax assets and liabilities are as follows:

As at December 31,	2024		2023
	$		$
Deferred income tax assets:
Property, plant and equipment	243,000		-
Share issuance costs	-		342,000
Investment tax credits	340,000		-
Non-capital losses	5,557,000		5,599,000
Other items	-		413,000

DEFERRED TAX ASSET	6,140,000		6,354,000

Deferred income tax liabilities:
Exploration and evaluation assets	(6,047,000	)	(6,267,000	)
Marketable securities	(93,000	)	(87,000	)

DEFERRED TAX LIABILITY	(6,140,000	)	(6,354,000	)


NET DEFERRED INCOME TAX LIABILITY	-		-

c. Deductible temporary differences

The Company has the following deductible temporary differences for which no deferred tax assets have been recognized:

As at December 31,	2024	Expiry dates	2023
	$		$

Non-capital losses	20,627,000	2030 - 2044	9,608,000
Property, plant and equipment	659,000	No expiry	-
Share issuance costs	3,114,000	2045 - 2048	-
Investment tax credits	3,041,000	2025 - 2030	-

TOTAL	27,441,000		9,608,000

d. Non-capital losses

The Company has incurred non-capital losses that may be carried forward and used to reduce taxable income of future years. These losses totaled $41.2 million as at December 31, 2024 (2023 - $33.8 million) and will expire between 2030 and 2044.