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EXPLORATION AND EVALUATION ASSETS

9 Months Ended

Sep. 30, 2025

5. EXPLORATION AND EVALUATION ASSETS

The exploration and evaluation assets of the Company consist of the acquisition costs of mining assets located in Botswana:

		242,955			9,068		252,023
	Botswana
	Selebi $			Selkirk $		Total $

Balance, December 31, 2023		8,285,523			309,275		8,594,798
Foreign currency translation		242,955			9,068		252,023
Balance, December 31, 2024		8,528,478			318,343		8,846,821
Balance		8,528,478			318,343		8,846,821
Impairment loss - Phikwe South and Southeast Extension		(501,497	)		-		(501,497	)
Foreign currency translation		121,752			4,690		126,442
Balance, September 30, 2025		8,148,733			323,033		8,471,766
Balance		8,148,733			323,033		8,471,766

The following is a description of the Company’s exploration and evaluation assets and the related spending commitments:

Botswana Assets - Selebi and Selkirk

In September 2021, the Company executed the Selebi Asset Purchase Agreement (“Selebi APA”) with the BCL Limited (“BCL”) liquidator to acquire the Selebi Mines formerly operated by BCL. In January 2022, the Company closed the transaction and ownership of the Selebi Mines transferred to the Company.

Pursuant to the Selebi APA, the aggregate purchase price payable to the seller for the Selebi Mines shall be the sum of $78,652,330 (US$56,750,000), which amount shall be paid in three instalments:

●	$2,086,830 (US$1,750,000) payable on the closing date. This payment has been made. The Company also made care and maintenance funding contributions in respect of the Selebi Mines from March 22, 2021, to the closing date of $6,164,688 (US$5,178,747).

●	$34,802,500 (US$25,000,000) payable upon the approval by the Botswana Ministry of Mineral Resources, Green Technology and Energy Security (“MMRGTES”) of the Company’s Section 42 and Section 43 applications (for the further extension of the mining license and amendment of mining programme, respectively) which are to be submitted in March 2026 and require a compliant economic study.

●	$41,763,000 (US$30,000,000) payable on the completion of mine construction and production start-up (commissioning) by the Company, but not later than four years after the approval by the MMRGTES of the Company’s Section 42 and Section 43 applications.

The total acquisition cost of the Selebi Mines included the first instalment of $2,086,830 (US$1,750,000) and the payment of the care and maintenance funding contribution of $6,164,688 (US$5,178,747). As per the terms and conditions of the Selebi APA, the Company has the option to cancel the second and third payments and return the Selebi Mines to the liquidator if the Company determines that the Selebi Mines are not economical. The Company also has an option to pay in advance the second and third payments if the Company determines that the Selebi Mines are economical.

In addition to the Selebi APA, the purchase of the Selebi Mines is also subject to a royalty agreement as well as a contingent consideration agreement with the liquidator. The royalty agreement consists of a net smelter returns royalty (the “Selebi NSR”) of 2% on the net value of sales of concentrate or other materials with respect to production from the Selebi mining licence, of which the Company has the right to buy-back 50% (Note 10). The contingent consideration agreement consists of two components: (i) a sliding scale payment of US$0.50/tonne of ore up to US$1.40/tonne of ore with respect to the discovery of new mineable deposits greater than 25 million tonnes of ore from a base case of 15.9 million tonnes, with a minimum grade of 2.5% nickel equivalent, accrued at the time of a decision to mine; and (ii) price participation of 15% on post-tax net earnings directly attributable to an increase of 25% or more in commodity prices, on a quarterly basis, for a period of seven years from the date of first shipment of concentrate or other materials.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three and nine months ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

The Company also negotiated a separate asset purchase agreement (the “Selkirk APA”) with the liquidator of Tati Nickel Mining Company (“TNMC”) in January 2022 to acquire the Selkirk deposit and related infrastructure formerly operated by TNMC. The transaction closed in August 2022.

The Selkirk APA does not provide for a purchase price or initial payment for the purchase of the assets. The acquisition cost of the Selkirk Mine of $327,109 (US$244,954) was the care and maintenance funding contribution from April 1, 2021, to the closing date of the Selkirk APA. The Selkirk APA provides that if the Company elects to develop the Selkirk Mine first, the payment of the second Selebi instalment of $34,802,500 (US$25,000,000) would be upon the approval by the MMRGTES of the Company’s Section 42 and Section 43 applications (for the further extension of the Selkirk mining licence and amendment of the Selkirk mining programme, respectively). For the third Selebi instalment of $41,763,000 (US$30,000,000), if the Selkirk Mine were to be commissioned earlier than the Selebi Mines, the payment would trigger on the Selkirk Mine’s commission date. The Selkirk APA provides for a three-year study phase originally expiring August 17, 2025, which has been extended for one year to August 17, 2026.

In addition to the Selkirk APA, the purchase of the Selkirk Mine is also subject to a royalty agreement as well as a contingent consideration agreement with the liquidator. The royalty agreement consists of a net smelter returns royalty (the “Selkirk NSR”) of 1% on the net value of sales of concentrate or other materials with respect to production from the Selkirk mining licence, which the Company has the right to buy-back in full (Note 10). The contingent consideration agreement is on similar terms as the Selebi Mines contingent consideration.

In August 2023, the Company entered into a binding commitment letter with the liquidator of BCL to acquire a 100% interest in two additional deposits (“Phikwe South” and the “Southeast Extension”) located adjacent to and immediately north of the Selebi North shaft. The agreement has since lapsed and on August 11, 2025, the Company informed the liquidator of BCL that it would no longer be pursuing the acquisition of the Phikwe South and the Southeast Extension deposits. As a result, the Company recorded an impairment loss of $501,497 during the quarter ended September 30, 2025, related to care and maintenance costs during the evaluation period of the properties in 2023, which had been previously capitalized as part of the Selebi Mines acquisition cost.

Both the Selebi Mines and Selkirk Mine are subject to a royalty payable to the Botswana Government of 5% of all precious metals sales and 3% of all base metals sales.

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three and nine months ended September 30, 2025 and 2024

(Expressed in Canadian dollars)

General Exploration Expenses

Details of the general exploration expenses by nature are presented as follows:

H		1		2		3		4		5		6		7		8
	Three months ended September 30, 2025								Three months ended September 30, 2024
	Selebi $		Selkirk $		Other $		Total $		Selebi $		Selkirk $		Other $		Total $
Drilling		1,490,905		818,759		-		2,309,664		2,447,533		-		-		2,447,533
Site operations, administration, & overhead		1,108,662		213,844		107,576		1,430,082		963,676		133,705		32,885		1,130,266
Infrastructure & equipment maintenance		770,407		100,497		-		870,904		1,007,060		-		-		1,007,060
Geology		1,089,997		535,669		-		1,625,666		848,407		314,210		-		1,162,617
Mine development		828,308		-		-		828,308		813,436		-		-		813,436
Electricity		1,557,944		6,945		-		1,564,889		730,320		6,752		-		737,072
Engineering & technical studies		432,178		164,461		-		596,639		265,929		49,555		-		315,484
Geophysics		124,688		148,161		-		272,849		251,156		25,534		-		276,690
Freight, tools, supplies, & other consumables		631,199		27,744		-		658,943		209,849		-		-		209,849
Health & safety		133,997		474		-		134,471		68,303		-		-		68,303
Environmental, social & governance		206,729		-		-		206,729		75,273		-		-		75,273
Share-based compensation		90,841		68,334		-		159,175		307,874		76,969		-		384,843
Total		8,465,855		2,084,888		107,576		10,658,319		7,988,816		606,725		32,885		8,628,426

H		1		2		3		4		5		6		7		8
	Nine months ended September 30, 2025								Nine months ended September 30, 2024
	Selebi $		Selkirk $		Other $		Total $		Selebi $		Selkirk $		Other $		Total $
Drilling		5,209,483		1,521,991		-		6,731,474		5,007,436		-		-		5,007,436
Site operations, administration, & overhead		3,402,903		600,316		260,318		4,263,537		3,372,205		338,115		128,600		3,838,920
Infrastructure & equipment maintenance		2,212,685		100,498		-		2,313,183		2,835,796		-		-		2,835,796
Geology		2,109,834		865,740		-		2,975,574		2,337,533		347,507		-		2,685,040
Mine development		2,205,097		-		-		2,205,097		2,176,668		-		-		2,176,668
Electricity		3,287,186		15,597		-		3,302,783		2,103,650		22,079		-		2,125,729
Engineering & technical studies		1,770,926		192,056		-		1,962,982		530,366		173,556		-		703,922
Geophysics		594,456		169,100		-		763,556		747,519		118,372		-		865,891
Freight, tools, supplies, & other consumables		1,153,992		115,345		-		1,269,337		660,362		93		-		660,455
Health & safety		354,612		4,103		-		358,715		179,480		43		-		179,523
Environmental, social & governance		367,508		-		-		367,508		227,286		-		-		227,286
Share-based compensation		411,631		205,815		-		617,446		504,395		126,100		-		630,495
Total		23,080,313		3,790,561		260,318		27,131,192		20,682,696		1,125,865		128,600		21,937,161

Notes to the Unaudited Condensed Interim Consolidated Financial Statements

For the three and nine months ended September 30, 2025 and 2024

(Expressed in Canadian dollars)