Group 1 - U.S. stocks experienced an upward trend, with the Dow Jones index increasing by over 200 points on Friday [1] - Crinetics Pharmaceuticals, Inc. saw a significant stock price increase of 23.7%, reaching $44.41, following FDA approval of PALSONIFY [1] - Baird and JMP Securities raised their price targets for Crinetics Pharmaceuticals [1] Group 2 - Aquestive Therapeutics, Inc. stock rose by 21.2% to $6.38 [3] - Perpetua Resources Corp. increased by 18% to $22.43 after providing an update on securing the American antimony supply chain [3] - Robo.ai Inc. gained 14% to $2.77 [3] - Quantum Computing Inc. saw a 13% increase to $23.15 [3] - SkyWater Technology, Inc. shares jumped 12% to $17.23 [3] - Scholar Rock Holding Corporation surged 10.8% to $38.23, despite receiving a Complete Response Letter from the FDA regarding its treatment for spinal muscular atrophy [3] - Avino Silver & Gold Mines Ltd. gained 9.2% to $5.24 [3] - New Found Gold Corp. rose 9.1% to $2.3347, confirming high-grade core in its sampling program [3] - Gorilla Technology Group Inc. increased by 7% to $20.10 after signing a $1.4 billion deal for AI data centers in Southeast Asia [3] - BlackBerry Limited rose 6.6% to $4.9596 after reporting better-than-expected second-quarter EPS and sales, along with raising its FY2026 adjusted EPS guidance [3] - Carpenter Technology Corporation increased by 6.6% to $247.84 [3]

Core Insights - New Found Gold Corp. announced positive results from a channel sampling program at the Iceberg excavation in the Queensway Gold Project, indicating high-grade gold mineralization over a significant strike length [1][2][3] Group 1: Channel Sampling Program - The channel sampling program covered a 220 m by 105 m area, exposing gold-bearing quartz veins over a strike length of 185 m beneath 2.5 to 9 m of overburden [3][4] - A total of 964 m of channel samples were collected at 7.5 m intervals across 45 channel lines, providing detailed analysis of gold grade variability [3][4] - High-grade intervals included notable results such as 64.8 g/t Au over 6.71 m and 113 g/t Au over 2.99 m, contributing to a continuous section of the Iceberg vein [6][7] Group 2: Geological and Resource Modeling - The results from the channel sampling will inform geological and resource models, aiming to increase confidence in resource areas for the Phase 1 mine plan outlined in the Preliminary Economic Assessment (PEA) [4][5] - The Iceberg zone is part of a larger gold system associated with the Keats Baseline Fault Zone, which has an interpreted strike length of approximately 2 km [5] Group 3: Future Plans and Drilling Programs - New Found Gold commenced a 70,000 m drill program in May 2025, with 80% of the drilling focused on the AFZ Core area [7][8] - The company plans to continue excavation and channel sampling in additional near-surface zones to validate the geological model and gather analytical information for the Phase 1 mine plan [8][9] - An infill drill program is ongoing to convert resources from inferred to indicated, expected to be completed in Q4 2025 [10]

Core Viewpoint - New Found Gold Corp. has strengthened its management team with key appointments, including Dr. Andrew Furey as an independent director, Hashim Ahmed as CFO, and Robert Assabgui as COO, as the company advances towards production [1][2]. Management Changes - Dr. Andrew Furey, former Premier of Newfoundland and Labrador, has been appointed as an independent director, bringing extensive experience in policy and economic strategy [1][3]. - Hashim Ahmed has been appointed as CFO, with 25 years of experience in financial management and a history of executive roles in the mining industry [1][4][5]. - Robert Assabgui has been appointed as COO, previously serving as Study Manager and having significant experience in project management and engineering within the mining sector [1][6][7]. - Vijay Mehta has stepped down from his role as director, and Michael Kanevsky will assist with the transition [1][2]. Company Background - New Found Gold is an emerging Canadian gold producer with a 100% interest in the Queensway Gold Project located in Newfoundland and Labrador, recognized for its excellent infrastructure and skilled workforce [9]. - The company has completed a Preliminary Economic Assessment (PEA) for the Queensway project, with ongoing drilling revealing new discoveries [9]. - Recent agreements include acquiring shares from Maritime Resources Corp. and a property purchase agreement with Exploits Discovery Corp., which will increase the size of the Queensway project by up to 33%, totaling 234,050 hectares [10]. Shareholder Base - The company has a solid shareholder base, including approximately 23.1% ownership by Eric Sprott, indicating strong investor confidence as it focuses on gold production [11].

Summary of New Found Gold (NYSEAM:NFGC) 2025 Conference Call Company Overview - **Company**: New Found Gold (NFGC) - **Acquisition**: New Found Gold announced the acquisition of Maritime shares, enhancing its asset portfolio in Newfoundland [1][2] - **Management Changes**: A new board was established in December, with key appointments aimed at strengthening the development and operational focus [3][4] Industry Context - **Location**: Operations are based in Newfoundland, a jurisdiction noted for its favorable mining conditions [2] - **Market Position**: The company is transitioning from an exploration-focused entity to a gold producer, which is expected to enhance its market valuation [5][25] Key Projects - **Hammer Down Mine**: - A high-grade open-pit mine with a projected life of 5-6 years, expected to generate cash flow [5][10] - Fully permitted and financed, with initial ore shipments planned shortly [9][10] - Anticipated production of 40,000 to 50,000 ounces annually at a reserve grade of 4.4 grams per tonne [10] - **Queensway Project**: - Phase one involves a 700 ton per day operation, generating 69,000 ounces annually at a cost of just under $1,300 per ounce [12][13] - Phase two will expand to a 7,000 ton per day plant, targeting 172,000 ounces annually at a cost of less than $1,100 per ounce [13] - Total capital costs for phase one are estimated at $155 million, with phase two projected at $442 million [13] Financial Highlights - **Transaction Terms**: The total cost for the acquisition is $292 million, with a pro forma shareholding value of $69.31 [7] - **Balance Sheet**: Post-acquisition, the company will have a strong balance sheet with approximately $109 million in cash and no debt [7] - **Cash Flow Generation**: The cash flow from Hammer Down will support the equity portion of financing for the Queensway project [25] Strategic Advantages - **Synergies**: The combination of Hammer Down and Queensway provides complementary assets, including two processing facilities, enhancing operational control [6][22] - **Government Support**: The Newfoundland government has been cooperative, with rapid processing of environmental assessments noted [18] - **Local Workforce**: The company expects to utilize a local workforce, benefiting from the regional population's interest in mining jobs [20] Exploration Potential - **Exploration Upside**: The property package includes numerous exploration targets, with a focus on both near-mine and greenfield opportunities [11][55] - **Drilling Results**: Recent drilling has confirmed high-grade veins, with ongoing exploration expected to yield further discoveries [38][46] Shareholder Benefits - **Premiums and Valuation**: The transition to a producer is expected to result in a significant rerate in valuation, with targets set at $3 billion to $3.5 billion in market capitalization over the next five to six years [23][25] - **Institutional Support**: Strong backing from major shareholders, including Eric Sprott and Dundee Corp, enhances confidence in the company's future [24][32] Conclusion - New Found Gold is positioned for significant growth through its strategic acquisitions and operational developments in Newfoundland, with a clear path to becoming a major gold producer in the region [25][30]

Core Viewpoint - New Found Gold Corp. has entered into a definitive agreement to acquire Maritime Resources Corp., creating a multi-asset near-term gold producer in a tier 1 jurisdiction with significant operational synergies [1][2][3] Transaction Overview - New Found Gold will acquire all outstanding common shares of Maritime not already owned, with an exchange ratio of 0.75 New Found Gold shares for each Maritime share, implying a 32% premium based on the 20-day VWAP [1][4][13] - The implied equity value of the transaction is approximately $292 million on a fully-diluted basis [4] Strategic Rationale - The acquisition positions New Found Gold as an emerging gold producer, with production expected to commence in 2027 from the Queensway Gold Project and in early 2026 from the Hammerdown Gold Project [2][3][11] - Significant operational synergies are anticipated through existing infrastructure, including the Pine Cove Mill and Nugget Pond Hydrometallurgical Gold Plant, which will support the development of Queensway [2][11] Benefits to Shareholders - Maritime shareholders will receive immediate and significant premiums, with a 32% premium based on the 20-day VWAP and a 56% premium to the closing price prior to the letter of intent [4][11] - The transaction allows Maritime shareholders to retain exposure to Hammerdown while gaining access to New Found Gold's high-grade Queensway project [11][19] Production and Financial Metrics - Hammerdown is expected to ramp up to full production in early 2026, with annual production of 50,000 ounces at an all-in sustaining cost (AISC) of US$912 per ounce [9][11] - The combined entity is projected to generate significant cash flow, with Hammerdown's cash flow expected to fund a material portion of the capital expenditures for Queensway [11][17] Board and Advisor Recommendations - The Maritime Board unanimously approved the transaction, stating it is in the best interests of Maritime shareholders [19][20] - Financial advisors for both companies have provided fairness opinions regarding the transaction [22][23] Closing Conditions - The transaction is subject to approval by Maritime shareholders and customary closing conditions, with completion expected in the fourth quarter of 2025 [15][19]

Core Viewpoint - The recent metallurgical test work at the Queensway project confirms high gold recovery rates and supports the feasibility study planned for Q4 2025 [1][9][19]. Group 1: Metallurgical Test Work - The program commenced in late 2024, focusing on master composites from the Keats West zone and re-evaluating low-grade samples from various zones [2][5]. - Approximately 660 meters of drill core, weighing 2,700 kilograms, was selected for testing, resulting in three master composites based on carbon content [6]. - The test results showed an average gold recovery of 89.2%, confirming the flowsheet presented in the preliminary economic assessment (PEA) [9][12]. Group 2: Mineralogical Studies - A mineralogical gold deportment study was conducted, revealing similar mineral assemblages across the tested zones, dominated by quartz, illite, chlorite, and albite [8][10]. - The Keats West Weak sample contained a significant amount of submicroscopic gold, accounting for 49% of its gold content [18]. Group 3: Future Plans - Additional metallurgical test work is planned, including a feasibility study level program, with results expected in the second half of 2026 [19]. - The company aims to establish a gravity/CIL flowsheet and optimize recovery processes for sulphide-associated mineralization [25]. Group 4: Company Overview - New Found Gold holds a 100% interest in the Queensway project, located in Newfoundland and Labrador, and has completed an initial mineral resource estimate and PEA [22][23]. - The company has a solid shareholder base, including a 23.1% holding by Eric Sprott, and is focused on growth and value creation at Queensway [23].

Group 1 - New Found Gold (NYSE: NFGC) is positioned in a growing gold camp in Newfoundland, indicating potential for significant value appreciation in the market [1] - Recent drill results and corporate developments suggest that the market may be undervaluing the company's prospects [1] Group 2 - The focus is on identifying companies with strong brand recognition, solid financials, and growth potential within the consumer products sector [1]

Core Viewpoint - New Found Gold Corp. has successfully completed a non-brokered private placement, raising gross proceeds of C$20,000,000.57 through the issuance of 12,269,939 common shares, with a hold period until December 27, 2025 [1][2]. Group 1: Private Placement Details - The private placement involved Mr. Eric Sprott acquiring 12,269,939 common shares for a total consideration of C$20,000,000.57, increasing his ownership from approximately 19.0% to 23.1% of the outstanding shares on a non-diluted basis [2]. - The gross proceeds from the private placement will be allocated to advance the 100% owned Queensway Gold Project and for general corporate and working capital purposes [6]. - No finder's fees were paid in connection with the completion of the private placement [5]. Group 2: Management and Strategic Outlook - Keith Boyle, CEO of New Found Gold, expressed gratitude for Mr. Sprott's continued support, highlighting that his participation reflects confidence in the project and the new leadership team [7]. - The company has a new management team and is focused on growth and value creation at the Queensway project, which covers a significant area of 175,450 hectares with ongoing drilling yielding new discoveries [9][11]. - Mr. Sprott's participation in the private placement is considered a "related party transaction," and the company relied on exemptions from certain approval requirements under Multilateral Instrument 61-101 [7].

Core Viewpoint - New Found Gold Corp. has temporarily suspended all exploration activities involving heavy equipment at its Queensway Gold Project due to extreme forest fire risks in Newfoundland and Labrador [1][2]. Company Overview - New Found Gold holds a 100% interest in the Queensway Gold Project, located in Newfoundland and Labrador, which is recognized as a Tier 1 jurisdiction with excellent infrastructure and a skilled local workforce [3]. - The company has completed an initial Mineral Resource Estimate (MRE) and Preliminary Economic Assessment (PEA) for the Queensway project [3]. Recent Developments - Recent drilling at the Queensway project has continued to yield new discoveries, indicating significant district-scale potential across the 175,450 hectares of the project, which covers a 110 km strike extent along two prospective fault zones [4]. - The company has a new management team and a solid shareholder base, including a 19% holding by Eric Sprott, focusing on growth and value creation at Queensway [4].

[Condensed Interim Financial Statements](index=1&type=section&id=Condensed%20Interim%20Financial%20Statements) New Found Gold Corp.'s Q2 2025 interim financials show increased assets and equity, reduced net loss, and improved cash flow from a prospectus offering [Condensed Interim Statements of Financial Position](index=2&type=section&id=Condensed%20Interim%20Statements%20of%20Financial%20Position) As of June 30, 2025, total assets and equity significantly increased due to cash, with liabilities rising from a new flow-through share premium | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | Change (%) | | :-------------------------- | :------------------ | :-------------------- | :--------- | :--------- | | Total Assets | 113,133,217 | 74,019,011 | 39,114,206 | 52.84% | | Cash and cash equivalents | 66,420,308 | 22,317,548 | 44,102,760 | 197.61% | | Total Liabilities | 20,920,060 | 7,448,306 | 13,471,754 | 180.88% | | Total Equity | 92,213,157 | 66,570,705 | 25,642,452 | 38.52% | - The increase in total liabilities is primarily attributable to a new flow-through share premium of **$15,487,832** as of June 30, 2025, which was not present at December 31, 2024[2](index=2&type=chunk) [Condensed Interim Statements of Loss and Comprehensive Loss](index=3&type=section&id=Condensed%20Interim%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) For H1 2025, the company reported a reduced net loss, driven by lower exploration costs and improved investments, despite increased share-based compensation | Metric (Six months ended June 30) | 2025 ($) | 2024 ($) | Change ($) | Change (%) | | :---------------------------------- | :------- | :------- | :--------- | :--------- | | Exploration and evaluation expenditures | 14,370,837 | 24,289,001 | (9,918,164) | -40.83% | | Share-based compensation | 1,358,932 | 626,389 | 732,543 | 116.95% | | Loss from operating activities | (21,265,759) | (28,749,908) | 7,484,149 | -26.03% | | Realized gains (losses) on disposal of investments | 160,701 | (23,420) | 184,121 | -786.17% | | Unrealized gains (losses) on investments | 633,900 | (1,047,216) | 1,681,116 | -160.53% | | Loss and comprehensive loss for the period | (19,500,643) | (25,277,094) | 5,776,451 | -22.85% | | Loss per share – basic and diluted ($) | (0.10) | (0.13) | 0.03 | -23.08% | [Condensed Interim Statements of Cash Flows](index=4&type=section&id=Condensed%20Interim%20Statements%20of%20Cash%20Flows) H1 2025 cash and cash equivalents significantly increased, driven by financing activities, decreased operating outflows, and positive investing cash flow | Cash Flow Activity (Six months ended June 30) | 2025 ($) | 2024 ($) | Change ($) | Change (%) | | :-------------------------------------------- | :------- | :------- | :--------- | :--------- | | Net cash and cash equivalents (used in) operating activities | (18,685,900) | (26,720,194) | 8,034,294 | -30.07% | | Net cash and cash equivalents generated from (used in) investing activities | 2,651,582 | (454,546) | 3,106,128 | -683.36% | | Net cash and equivalents generated from financing activities | 60,177,983 | 25,490,001 | 34,687,982 | 136.08% | | Net increase (decrease) in cash and cash equivalents | 44,102,760 | (1,658,231) | 45,761,000 | -2759.64% | | Cash and cash equivalents at end of period | 66,420,308 | 52,226,578 | 14,193,730 | 27.18% | - The significant increase in cash from financing activities in 2025 was primarily due to the issuance of common shares in a prospectus offering, generating **$63,480,000**[6](index=6&type=chunk) [Condensed Interim Statements of Changes in Equity](index=6&type=section&id=Condensed%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity significantly increased from December 2024 to June 2025, driven by a prospectus offering, partially offset by the period's loss and a flow-through premium | Metric | December 31, 2024 ($) | June 30, 2025 ($) | Change ($) | Change (%) | | :-------------------------------- | :-------------------- | :---------------- | :--------- | :--------- | | Total equity | 66,570,705 | 92,213,157 | 25,642,452 | 38.52% | | Issued in prospectus offering | - | 63,480,000 | 63,480,000 | N/A | | Flow-through premium | - | (16,242,600) | (16,242,600) | N/A | | Total loss and comprehensive loss for the period | (24,991,260) | (19,500,643) | 5,490,617 | -21.97% | - The company issued **28,980,000** common shares in a prospectus offering during the six months ended June 30, 2025, contributing significantly to the increase in share capital[9](index=9&type=chunk) [Notes to the Condensed Interim Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Financial%20Statements) These notes detail the company's operations, accounting policies, asset valuations, liabilities, equity, related party transactions, and financial instrument risks for Q2 2025 and 2024 [1. Nature of Operations and Going Concern](index=7&type=section&id=1.%20NATURE%20OF%20OPERATIONS%20AND%20GOING%20CONCERN) New Found Gold Corp.'s going concern status depends on securing financing due to an accumulated deficit and negative operating cash flows, despite a working capital surplus - The Company is a mineral exploration company engaged in the acquisition, exploration, and evaluation of resource properties, with a focus on gold properties located in Newfoundland and Labrador, Canada[12](index=12&type=chunk) | Metric | June 30, 2025 ($) | | :------------------------------------ | :---------------- | | Accumulated deficit | (329,265,075) | | Shareholders' equity | 92,213,157 | | Working capital surplus | 48,450,351 | | Negative cash flow from operating activities (six months) | (18,685,900) | - Management is actively targeting sources of additional financing, including through the issuance of shares, to assure continuation of operations and exploration programs, as the company's ability to continue as a going concern depends on generating such financing[14](index=14&type=chunk) [2. Material Accounting Policy Information](index=7&type=section&id=2.%20MATERIAL%20ACCOUNTING%20POLICY%20INFORMATION) Interim financials follow IFRS (IAS 34) and consistent policies; new standards had no material impact, but IFRS 18 (effective 2027) impact is undetermined - The condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as applicable to interim financial reports including International Accounting Standards 34 "Interim Financial Reporting" issued by the International Accounting Standards Board ("IASB")[17](index=17&type=chunk) - The policies applied in these condensed interim financial statements are the same as those applied in the most recent annual financial statements and were consistently applied to all the periods presented[19](index=19&type=chunk) - IFRS 18 "Presentation and Disclosure in Financial Statements" is not yet effective (January 1, 2027) and its effects on the Company's financial statements have not yet been determined, though other new standards had no material impact[24](index=24&type=chunk)[25](index=25&type=chunk) [3. Exploration and Evaluation Assets](index=9&type=section&id=3.%20EXPLORATION%20AND%20EVALUATION%20ASSETS) Exploration and evaluation assets remained stable at **$34.57 million** as of June 30, 2025, with expenditures significantly decreasing to **$14.37 million**, primarily in drilling and consulting | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | Change (%) | | :-------------------------------- | :---------------- | :-------------------- | :--------- | :--------- | | Exploration and evaluation assets | 34,573,359 | 34,505,484 | 67,875 | 0.20% | | Exploration expenditures (six months) | 14,370,837 | 24,289,001 | (9,918,164) | -40.83% | | Exploration Expenditure Category (Six months ended June 30, 2025) | Amount ($) | | :------------------------------------------------ | :--------- | | Drilling | 4,488,229 | | Salaries and consulting | 4,251,874 | | Assays | 1,464,176 | | Supplies and equipment | 642,923 | | Geophysics | 518,817 | | Metallurgy | 434,983 | | Preliminary economic assessment | 428,151 | | Office and general | 419,186 | | Travel and accommodations | 382,406 | | Technical reports | 243,460 | | Waste rock geochemistry | 227,566 | | Resource estimate | 251,480 | | Environmental studies | 290,245 | | Engineering and evaluation studies | 158,097 | | Reclamation | 125,816 | | Imagery and mapping | 69,185 | | Trenching | 53,465 | | Geochemistry | 34,048 | | Permitting and studies | 33,580 | | Exploration cost recovery | (146,850) | | **Total** | **14,370,837** | [3.1. Queensway Project – Gander, Newfoundland](index=11&type=section&id=3.1.%20Queensway%20Project%20%E2%80%93%20Gander%2C%20Newfoundland) The 100%-owned Queensway Project in Newfoundland and Labrador, covering **175,450 hectares**, integrated Kingsway Project in 2024, and actively manages various NSR royalties - As at June 30, 2025, the Company owned a **100%** interest in **103** mineral licenses including **7,018** claims comprising **175,450** hectares of land located near Gander, Newfoundland and Labrador[29](index=29&type=chunk) - On July 9, 2024, the Company acquired a **100%** interest in LabGold's Kingsway Project, located near Gander, Newfoundland and Labrador, which is considered part of the Queensway Project, for **5,263,157** common shares valued at **$20,000,000**[34](index=34&type=chunk) - The Queensway Project carries various net smelter return ("NSR") royalties ranging from **0.4% to 3.00%**, many of which include buy-back provisions. The Company also purchased **0.6%** of a **1.6%** NSR royalty for **$1,950,000** cash and **300,000** common shares in July 2024, and the remaining **1.0%** NSR for **$1,000,000** cash during 2024[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [4. Property and Equipment](index=12&type=section&id=4.%20PROPERTY%20AND%20EQUIPMENT) Property and equipment carrying amount slightly decreased to **$7.72 million** as of June 30, 2025, with **$134,256** in additions and **$353,571** in depreciation | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | Change (%) | | :-------------------- | :---------------- | :-------------------- | :--------- | :--------- | | Carrying Amount | 7,718,834 | 7,938,149 | (219,315) | -2.76% | | Additions (six months) | 134,256 | N/A | N/A | N/A | | Depreciation (six months) | 353,571 | N/A | N/A | N/A | [5. Investments](index=13&type=section&id=5.%20INVESTMENTS) Total investments increased to **$1.04 million** as of June 30, 2025, driven by warrant fair value gains, offsetting decreased equities, with substantial realized and unrealized gains | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | Change (%) | | :---------------- | :---------------- | :-------------------- | :--------- | :--------- | | Total Investments | 1,042,454 | 926,019 | 116,435 | 12.57% | | Equities held | 327,264 | 779,019 | (451,755) | -58.00% | | Warrants held | 715,190 | 147,000 | 568,190 | 386.52% | | Investment Gains/Losses (Six months ended June 30) | 2025 ($) | 2024 ($) | Change ($) | | :------------------------------------------------- | :------- | :------- | :--------- | | Realized gains (losses) on investments | 160,701 | (23,420) | 184,121 | | Unrealized gains (losses) on investments | 633,900 | (1,047,216) | 1,681,116 | [5.1. Equities Held](index=13&type=section&id=5.1.%20Equities%20Held) Equities held decreased to **$327,264** as of June 30, 2025, primarily due to Labrador Gold Corp. share disposal, while other holdings were maintained or increased | Equity | June 30, 2025 Fair Value ($) | December 31, 2024 Fair Value ($) | | :-------------------- | :----------------------------- | :------------------------------- | | Exploits Discovery Corp. | 207,873 | 187,086 | | Maritime Resources Corp. | 119,391 | - | | Labrador Gold Corp. | - | 591,933 | | **Total Equities** | **327,264** | **779,019** | - Investments in Exploits Discovery Corp. and Labrador Gold Corp. represent investments in public companies that are quoted on an active exchange and are measured using the quoted market price of these companies[39](index=39&type=chunk) [5.2. Warrants Held](index=13&type=section&id=5.2.%20Warrants%20Held) Warrants held fair value significantly increased to **$715,190** as of June 30, 2025, exercisable into Maritime Resources Corp. shares and valued using a Black-Scholes model | Warrant | June 30, 2025 Fair Value ($) | December 31, 2024 Fair Value ($) | | :-------------------- | :----------------------------- | :------------------------------- | | Maritime Resources Corp. | 715,190 | 147,000 | | **Total Warrants** | **715,190** | **147,000** | - Each warrant is exercisable into one common share of Maritime Resources Corp. at a price of **$0.70** per warrant until August 14, 2025, subject to extension[40](index=40&type=chunk) - Warrants without a quoted market price are valued using a Black-Scholes option pricing model, incorporating assumptions like risk-free interest rate, expected dividend yield, expected volatility, and expected remaining life[42](index=42&type=chunk) [6. Investment in Kirkland Lake Discoveries Corp.](index=15&type=section&id=6.%20INVESTMENT%20IN%20KIRKLAND%20LAKE%20DISCOVERIES%20CORP.) The company holds a **25.42%** ownership in KLDC as of June 30, 2025, maintaining significant influence, with KLDC's loss share decreasing and no impairment indicators - The Company holds a **25.42%** ownership interest in Kirkland Lake Discoveries Corp. ("KLDC") as at June 30, 2025, and continues to have significant influence over KLDC[44](index=44&type=chunk)[45](index=45&type=chunk) | Metric (Six months ended June 30) | 2025 ($) | 2024 ($) | Change ($) | Change (%) | | :-------------------------------- | :------- | :------- | :--------- | :--------- | | Share of KLDC's loss for the period | (57,792) | (740,380) | 682,588 | -92.19% | | Net Carrying amount – June 30, 2025 | 1,458,008 | N/A | N/A | N/A | | Estimated fair value of investment | 1,144,500 | N/A | N/A | N/A | - The Company performs an impairment indicator assessment on its investment in KLDC at each period end, and at June 30, 2025, there were no indicators of impairment[46](index=46&type=chunk) [7. Secured Notes](index=16&type=section&id=7.%20SECURED%20NOTES) The company fully disposed of secured notes in H1 2025 for **$2,778,000** gross proceeds, realizing a **$55,911** gain, with these FVTPL notes initially from Maritime Resources Corp - During the six months ended June 30, 2025, the Company sold the Notes for gross proceeds of **$2,778,000** (US**$2,000,000**)[51](index=51&type=chunk) | Metric | December 31, 2024 ($) | June 30, 2025 ($) | | :-------------------------- | :-------------------- | :---------------- | | Secured notes | 2,817,554 | - | | Realized gain on disposal | N/A | 55,911 | - The secured notes were classified as a financial instrument at fair value through profit and loss ("FVTPL") in accordance with IFRS 9 "Financial Instruments"[49](index=49&type=chunk) [8. Flow-Through Share Premium](index=17&type=section&id=8.%20FLOW-THROUGH%20SHARE%20PREMIUM) A new flow-through share premium liability of **$16,242,600** was incurred in Q2 2025, with **$754,768** settled, requiring **$53,738,085** in CEE by December 31, 2026 | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------------------------------- | :---------------- | :-------------------- | | Liability incurred on flow-through shares issued | 16,242,600 | - | | Settlement of flow-through share premium on expenditures incurred | (754,768) | (6,519,848) | | Balance at June 30, 2025 | 15,487,832 | - | - During the six months ended June 30, 2025, the Company incurred **$2,618,815** in Qualifying CEE and amortized a total of **$754,768** of its flow-through share premium liabilities[54](index=54&type=chunk) - As at June 30, 2025, the Company must spend another **$53,738,085** of Qualifying CEE by December 31, 2026, to satisfy its remaining current flow-through share premium liability of **$15,487,832**[55](index=55&type=chunk) [9. Accounts Payable and Accrued Liabilities](index=18&type=section&id=9.%20ACCOUNTS%20PAYABLE%20AND%20ACCRUED%20LIABILITIES) Accounts payable and accrued liabilities decreased to **$5.35 million** as of June 30, 2025, with the reclamation provision also decreasing to **$2.38 million** due to incurred costs | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | Change (%) | | :------------------------------------ | :---------------- | :-------------------- | :--------- | :--------- | | Accounts payable and accrued liabilities | 5,352,606 | 7,325,203 | (1,972,597) | -26.93% | | Reclamation provision | 2,378,988 | 2,426,378 | (47,390) | -1.95% | - The reclamation provision is based on known requirements under provincial environmental protection laws and regulations, with reclamation costs incurred during the period being **$118,462**[57](index=57&type=chunk)[58](index=58&type=chunk) [10. Share Capital and Reserves](index=18&type=section&id=10.%20SHARE%20CAPITAL%20AND%20RESERVES) Share capital and reserves significantly increased, with common shares outstanding rising to **229.7 million** as of June 30, 2025, driven by a **$63.48 million** prospectus offering and stock option exercises | Metric | June 30, 2025 | December 31, 2024 | Change | | :------------------------------------ | :------------ | :---------------- | :----- | | Common Shares Outstanding (Number) | 229,737,994 | 200,457,994 | 29,280,000 | | Share Capital (Amount) | $385,392,707 | $341,346,716 | $44,045,991 | | Reserves (Amount) | $36,085,525 | $34,988,421 | $1,097,104 | - The company completed a prospectus offering on June 12, 2025, issuing **28,980,000** common shares for aggregate gross proceeds of **$63,480,000**[60](index=60&type=chunk) - The company has a Share Purchase Option Plan allowing grants up to **10%** of outstanding common shares and adopted a Share Unit Compensation Plan, both subject to regulatory and corporate approvals[66](index=66&type=chunk)[67](index=67&type=chunk) [10.1. Details of Common Shares Issued During the Six Months Ended June 30, 2025](index=18&type=section&id=10.1.%20Details%20of%20Common%20Shares%20Issued%20During%20the%20Six%20Months%20Ended%20June%2030%2C%202025) In H1 2025, **28,980,000** common shares were issued via a prospectus offering for **$63,480,000** gross proceeds, incurring **$3,808,862** in costs, and **300,000** options were exercised for **$617,453** - On June 12, 2025, the Company completed a bought deal offering of **24,610,000** flow-through common shares and **4,370,000** non-flow-through common shares, for aggregate gross proceeds of **$63,480,000**[60](index=60&type=chunk) - The Company incurred share issuance costs of **$3,808,862** in cash and recognized a flow-through share premium of **$16,242,600**[60](index=60&type=chunk) - During the six months ended June 30, 2025, **300,000** stock options were exercised at a weighted average exercise price of **$1.19** per share for gross proceeds of **$617,453**[61](index=61&type=chunk) [10.2. Details of Common Shares Issued During the Year Ended December 31, 2024](index=19&type=section&id=10.2.%20Details%20of%20Common%20Shares%20Issued%20During%20the%20Year%20Ended%20December%2031%2C%202024) In 2024, **5,857,242** common shares were issued via an ATM program for **$27,522,494**, plus shares for Kingsway Project acquisition, royalty interests, and a legal claim settlement - During the year ended December 31, 2024, the Company sold **5,857,242** common shares under the ATM program for gross proceeds of **$27,522,494**[63](index=63&type=chunk) - On July 9, 2024, the Company issued **5,263,157** common shares with a value of **$20,000,000** for the acquisition of the Kingsway Project[65](index=65&type=chunk) - The Company issued **300,000** common shares with a value of **$1,011,000** for the acquisition of certain royalty interests on August 8, 2024, and **370,000** common shares with a value of **$1,750,100** for a legal claim settlement on June 26, 2024[64](index=64&type=chunk)[65](index=65&type=chunk) [10.3. Share Purchase Option Compensation Plan](index=19&type=section&id=10.3.%20Share%20Purchase%20Option%20Compensation%20Plan) The shareholder-approved Share Purchase Option Plan grants options to eligible participants, limited to **10%** of outstanding shares in aggregate and **5%** for any single optionee within twelve months - The Company has a share purchase option plan (the "Option Plan") approved by shareholders, allowing grants to officers, directors, employees, and service providers[66](index=66&type=chunk) - The Option Plan is based on the maximum number of eligible shares not exceeding **10%** in the aggregate and **5%** with respect to any one optionee of the Company's outstanding common shares in any twelve-month period[66](index=66&type=chunk) [10.4. Share Unit Compensation Plan](index=19&type=section&id=10.4.%20Share%20Unit%20Compensation%20Plan) The Share Unit Plan for RSUs, DSUs, and PSUs is capped at **10%** of outstanding shares with the Option Plan, subject to shareholder approval at the next AGM - The Company adopted a share unit plan (the "Share Unit Plan") to grant incentive awards consisting of restricted share units ("RSUs"), deferred share units ("DSUs"), and performance share units ("PSUs") to officers, directors, employees, and service providers[67](index=67&type=chunk) - The Share Unit Plan, in conjunction with the Option Plan, cannot exceed **10%** of the issued and outstanding common shares of the Company and is subject to shareholder approval at the Company's next Annual General Meeting of Shareholders on August 20, 2025[67](index=67&type=chunk) [10.5. Share Purchase Options](index=20&type=section&id=10.5.%20Share%20Purchase%20Options) As of June 30, 2025, outstanding share purchase options decreased to **8,038,000** (from **10,556,750**) with a weighted average exercise price of **$3.14**, with **3,770,000** granted and **300,000** exercised in H1 2025 | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Outstanding Options (Number) | 8,038,000 | 10,556,750 | | Exercisable Options (Number) | 5,391,542 | N/A | | Weighted Average Exercise Price ($) | 3.14 | 3.97 | | Weighted Average Contractual Remaining Life (Years) | 2.94 | 1.50 | | Option Activity (Six months ended June 30, 2025) | Number of Options | | :----------------------------------------------- | :---------------- | | Granted | 3,770,000 | | Exercised | (300,000) | | Cancelled/Forfeited/Expired | (5,988,750) | | Weighted Average Fair Value (Six months ended June 30) | 2025 ($) | 2024 ($) | | :----------------------------------------------------- | :------- | :------- | | Fair value of share purchase options granted | 0.98 | 3.06 | | Fair value of share purchase options exercised | 0.74 | 0.38 | | Closing share price at the date of exercise | 2.04 | 4.24 | [11. Related Party Balances and Transactions](index=22&type=section&id=11.%20RELATED%20PARTY%20BALANCES%20AND%20TRANSACTIONS) Related party transactions include administrative, exploration, and investor relations services, with key management personnel compensation significantly increasing to **$4.19 million** in H1 2025, including termination benefits | Related Party Transaction (Six months ended June 30) | 2025 ($) | 2024 ($) | | :------------------------------------------------- | :------- | :------- | | Amounts paid to PJH Consulting, LLC (administrative services) | 42,520 | - | | Amounts paid to EarthLabs Inc. (exploration and evaluation) | - | 9,000 | | Amounts paid to Notz Capital Corp. (corporate development and investor relations) | 46,921 | 87,964 | | Key Management Personnel Compensation (Six months ended June 30) | 2025 ($) | 2024 ($) | | :--------------------------------------------------------------- | :------- | :------- | | Salaries and Consulting | 1,692,294 | 794,140 | | Share-based compensation | 1,464,653 | 59,297 | | Bonus | 1,031,760 | 455,760 | | **Total** | **4,188,707** | **1,309,197** | - Key management personnel compensation for 2025 includes termination benefits of **$424,080** for Collin Kettell and **$505,440** for Greg Matheson, in accordance with their management agreements[76](index=76&type=chunk)[77](index=77&type=chunk) [12. Basic and Diluted Loss Per Common Share](index=24&type=section&id=12.%20BASIC%20AND%20DILUTED%20LOSS%20PER%20COMMON%20SHARE) For H1 2025, basic and diluted loss per common share improved to **$(0.10)** from **$(0.13)**, with anti-dilutive options excluded from diluted EPS due to net loss | Metric (Six months ended June 30) | 2025 | 2024 | | :---------------------------------------- | :--- | :--- | | Loss per share – basic and diluted ($) | (0.10) | (0.13) | | Weighted average number of common shares outstanding - Basic and diluted | 204,465,204 | 187,534,833 | - For the three and six months ended June 30, 2025 and 2024, the Company incurred net loss and comprehensive loss. As such, diluted loss per share excludes any potential conversion of **8,038,000** (2024 - **12,186,000**) share purchase options as they are anti-dilutive[81](index=81&type=chunk) [13. Supplemental Disclosure with Respect to Cash Flows](index=25&type=section&id=13.%20SUPPLEMENTAL%20DISCLOSURE%20WITH%20RESPECT%20TO%20CASH%20FLOWS) H1 2025 supplemental cash flow highlights non-cash investing/financing, including interest income in shares and issuance costs in payables, with decreased cash paid for interest and significantly reduced cash received | Non-Cash/Cash Flow Item (Six months ended June 30) | 2025 ($) | 2024 ($) | | :------------------------------------------------- | :------- | :------- | | Interest income received in common shares of Maritime Resources Corp. | 74,468 | - | | Share issuance costs included in accounts payable and accrued liabilities | 204,175 | 97,163 | | Cash paid for interest | 9,473 | 12,699 | | Cash received for interest | 306,635 | 1,640,614 | [14. Settlement of Legal Claim](index=25&type=section&id=14.%20SETTLEMENT%20OF%20LEGAL%20CLAIM) On June 5, 2024, a legal claim challenging a 2019 share sale was settled, with plaintiffs receiving **3,750,000** common shares, and the company issuing **370,000** shares valued at **$1,750,100** - On June 5, 2024, the Company entered into a Settlement Agreement with ThreeD Capital Inc. and 1313366 Ontario Inc., resolving a lawsuit challenging a 2019 share sale[87](index=87&type=chunk) - The Plaintiffs received a total of **3,750,000** common shares of the Company from the Defendants as part of the settlement[87](index=87&type=chunk) - The Company issued **370,000** common shares to the Plaintiffs with a total value of **$1,750,100**, recorded in the statement of loss and comprehensive loss for the year ended December 31, 2024[87](index=87&type=chunk) [15. Financial Instruments](index=26&type=section&id=15.%20FINANCIAL%20INSTRUMENTS) The company's financial instruments, primarily investments, are measured at fair value through profit or loss within a hierarchy, with credit, liquidity, and market risk management unchanged since December 31, 2024 - The Company's financial instruments measured at fair value are its investments, which includes equities, warrants and Notes held, classified according to a fair value hierarchy (Level 1 for equities, Level 2 for warrants and Notes)[88](index=88&type=chunk)[89](index=89&type=chunk) - The Company manages credit risk (low due to high-rated financial institutions), liquidity risk (relies on share issuance for funding), and market risk (currency, interest rate, commodity price, and equity price risk)[92](index=92&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk) - There have been no changes in management's methods for managing credit, liquidity, or market risks since December 31, 2024[93](index=93&type=chunk)[95](index=95&type=chunk)[102](index=102&type=chunk) [15.1. Fair Values](index=26&type=section&id=15.1.%20Fair%20Values) Investments are measured at fair value, with equities as Level 1 and warrants (and former secured notes) as Level 2, with no fair value hierarchy movements in H1 2025 | Financial Instrument (June 30, 2025) | Carrying Amount ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) | | :----------------------------------- | :------------------ | :---------- | :---------- | :---------- | | Investments | 1,042,454 | 327,264 | 715,190 | - | | Financial Instrument (December 31, 2024) | Carrying Amount ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) | | :--------------------------------------- | :------------------ | :---------- | :---------- | :---------- | | Investments | 926,019 | 779,019 | 147,000 | - | | Secured notes | 2,817,554 | - | 2,817,554 | - | - Equities held are measured using quoted market prices (Level 1), while warrants and secured notes (now disposed) are valued using models like Black-Scholes or Hull-White with observable market conditions (Level 2)[88](index=88&type=chunk) [15.2. Financial Instrument Risk Exposure](index=27&type=section&id=15.2.%20Financial%20Instrument%20Risk%20Exposure) The company faces various financial instrument risks, including low credit, managed liquidity, and market risks (currency, commodity, equity price), with quantified sensitivities for currency and equity price fluctuations - Credit risk is low as sales taxes recoverable are due from the Canada Revenue Agency and cash is placed with financial institutions with high credit ratings[92](index=92&type=chunk) - Liquidity risk is managed through a planning and budgeting process, with the company historically relying on share issuance to fund exploration programs[94](index=94&type=chunk) - Market risks include currency risk (**10%** change in US$/CAD exchange rate would impact net loss by **$200,091**), commodity price risk (gold prices significantly affect value), and equity price risk (**10%** change in market price of investments would impact net loss by **$104,245**)[97](index=97&type=chunk)[99](index=99&type=chunk)[101](index=101&type=chunk) [16. Subsequent Event](index=28&type=section&id=16.%20SUBSEQUENT%20EVENT) Subsequent to June 30, 2025, **1,000,000** share purchase options were exercised at **$1.40** per share, generating **$1,400,000** gross proceeds - Subsequent to June 30, 2025, **1,000,000** share purchase options with an exercise price of **$1.40** per share were exercised for gross proceeds of **$1,400,000**[103](index=103&type=chunk)