5. INVESTMENT IN ASSOCIATE

On April 5, 2022, the Company received 16,049,444 shares in Falcon Butte, in connection with a property acquisition agreement to assign the Company's options to acquire the Butte Valley property. At the time of acquisition, the 16,049,444 shares represented 25.54% of shares outstanding and the initial balance of the investment was determined to be $1,906 ($2,374 CAD). As at December 31, 2024 and June 30, 2025, the Company's share ownership was 20.47 and 20.44%, respectively. The Company and Falcon Butte have one common director, as such, management has assessed that the Company has significant influence over Falcon Butte and that the investment should be accounted for using the equity method of accounting.

Summarized financial information of Falcon Butte and a reconciliation of the carrying amount of the investment in the Interim Financial Statements are set out below:

Summarized balance sheet:

		June 30, 2025		December 31, 2024
Assets
Cash	$	239	$	381
Receivables		7		16
Financial asset - Convertible loan receivable		100		100
Prepaids & deposits		17		9
Investment in associate		3,991		4,067
Total Assets	$	4,354	$	4,573

Liabilities
Accounts payable & accrued liabilities	$	19	$	14
Derivative liabilities		1,839		881
Total Liabilities	$	1,858	$	895

Summarized statement of loss

		Six months ended June 30, 2025			Six months ended June 30, 2024
Operating expenses
General and administrative expenses	$	676		$	2,243
Total operating expenses		676			2,243

Fair value (gain) loss on derivative liability		698			(344	)
Other income		(54	)		(244	)
Foreign exchange loss (gain)		231			(134	)
Net loss		1,551			1,521

A continuity of the Company's investment in associate is as follows:

Balance December 31, 2023	$	1,206
Company's share of net loss		(104	)
Balance December 31, 2024	$	1,102
Company's share of net loss		(317	)
Balance June 30, 2025	$	785