NOTE 8 – NOTE RECEIVABLE

On December 19, 2024, the Company advanced to WRR $200,000 in exchange for a promissory note for a maximum of $500,000. The principal amount advanced under the note receivable accumulated interest at a rate of 12% per annum. In the event of default, WRR agreed to grant Nevada Canyon production royalty from the Lapon Canyon Project, based on the percentage of the NSR Royalty as defined in the Royalty Purchase Agreement dated May 24, 2024 (Note 4).

Upon signing of the Earn-in Agreement with WRR, on January 31, 2025 (Note 4), the $200,000 principal the Company advanced under the Promissory Note, including accrued interest of $2,835, was deemed satisfied in full and credited toward Nevada Canyon’s exploration expenses obligations for the first Annual Period.

As at June 30, 2025, the Company had recognized $2,046 in interest income under the promissory note (2024 - $Nil).