10. ADDITIONAL PAID-IN CAPITAL

a) Stock options

The Company has a stock option plan under which the Company is authorized to grant stock options up to 20% of the issued and outstanding common shares at the time of grant, subject to certain restrictions.

Under the stock option plan, all stock options are granted at the discretion of the Company's board of directors, including any vesting provisions if applicable. The term of any stock option grants may not exceed ten years, and the exercise price may not be lower than the closing price of the Company's share on the last trading day immediately preceding the date of grant. Typically, stock options granted have five-year terms and are vested either immediately or subject to certain milestone requirements.

During the six months ended June 30, 2025, the Company granted the following stock options:

• 7,500,000 performance options with an exercise price of $0.08, expiring on April 4, 2030, and vest as follows:
  • 3,750,000 vest upon either (a) the market capitalization of the Company's common shares reaches $100,000 for any 30 consecutive trading days or (b) the Company closing a liquidity event having a fair market value of no less than $100,000;
  • 3,750,000 vest upon either (a) the market capitalization of the Company's common shares reaches $200,000 for any 30 consecutive trading days or (b) the Company closing a liquidity event having a fair market value of no less than $200,000;

The performance options were valued using a Monte Carlo simulation model with the following inputs:

	April 4, 2025
Risk-free interest rate	2.52%
Expected volatility	125%
Dividend yield	0%
Market Cap	$100M/$200M
Exercise Price	$0.08
Simulation Paths	10,000

During the year ended December 31, 2024, the Company granted the following stock options:

• 14,295,000 on March 1, 2024 with an exercise price of $0.07 CAD and expiring on March 1, 2029.
• 1,700,000 on July 10, 2024 with an exercise price of $0.08 CAD and expiring on October 24, 2024.
• 7,500,000 on July 26, 2024 with an exercise price of $0.08 CAD and expiring on July 26, 2029.
• 17,160,000 on December 10, 2024 with an exercise price of $0.085 CAD and expiring on December 10, 2029.

The continuity of the number of stock options issued and outstanding is as follows:

As of June 30, 2025, the number of stock options outstanding and exercisable were:

*Under the Company's Stock Option Plan, the expiry date of certain stock options has been extended beyond June 20, 2025, as the original expiry fell within a corporate trading blackout period.

As of December 31, 2024, the number of stock options outstanding and exercisable were:

During the six months ended June 30, 2025, an amount of $1,257 (2024 - $660) was expensed as share-based payments related to the vesting of options. The portion of share-based payments recorded is based on the vesting schedule of the options. The following weighted average assumptions were applied using the Black-Scholes Option Pricing model used to estimate the fair value of stock options granted during the six months ended June 30, 2025 and 2024.

b) Share purchase warrants

During the year ended December 31, 2024, the Company granted the following share purchase warrants:

• 15,696,882 on February 16, 2024 with an exercise price of $0.06 ($0.08 CAD) and expiring on February 16, 2025.
• 27,917,520 on March 8, 2024 with an exercise price of $0.056 and expiring on March 8, 2029.
• 41,707,215 on September 19, 2024 with an exercise price of $0.056 and expiring on September 19, 2029.
• 25,155,554 on November 8, 2024 with an exercise price of $0.06 and expiring on November 8, 2029.

The continuity of the number of share purchase warrants outstanding as of June 30, 2025 and December 31, 2024 is as follows:

The following table summarizes warrants outstanding as of June 30, 2025 and December 31, 2024: