| INCOME TAXES |
Income tax (expense) recovery for the fifteen months ended December 31, 2025 and twelve months ended September 30, 2024 varies from the amount that would be computed from applying the combined federal and provincial income tax rate to income (loss) before income taxes as follows: | | | Fifteen months ended
December 31, 2025 | | | Twelve months ended
September 30, 2024
(Restated – Note 6) | | | Net loss before income taxes | | $ | (16,972,421 | ) | | $ | (3,085,195 | ) | | Statutory Canadian corporate tax rate | | | 27 | % | | | 27 | % | | Anticipated income tax recovery | | $ | (4,583,000 | ) | | $ | (833,000 | ) | | Change in tax resulting from: | | | | | | | | | | Change in statutory, foreign tax, foreign exchange rates and other | | | (1,127,000 | ) | | | (31,000 | ) | | Permanent differences | | | 3,335,000 | | | | 171,000 | | | Adjustment to prior years provision versus statutory tax returns and expiry of non-capital losses | | | (20,555,000 | ) | | | 61,000 | | | Share issue costs | | | (2,049,000 | ) | | | (18,000 | ) | | Change in unrecognized deductible temporary differences | | | 24,979,000 | | | | 650,000 | | | Net deferred income tax recovery | | $ | – | | | $ | – | | The significant components of the Company’s deferred income tax assets (liability) are as follows: | | | December 31, 2025 | | | September 30, 2024 | | | Deferred tax assets (liabilities) | | | | | | | | Exploration and evaluation assets | | $ | 22,932,000 | | | $ | 1,372,000 | | | Property and equipment | | | 190,000 | | | | 77,000 | | | Share issue costs | | | 1,573,000 | | | | 15,000 | | | Non-capital losses available for future periods | | | 2,764,000 | | | | 1,016,000 | | | | | $ | 27,459,000 | | | $ | 2,480,000 | | | Unrecognized deferred tax assets | | | (27,459,000 | ) | | | (2,480,000 | ) | | Net deferred tax assets | | $ | – | | | $ | – | | As at December 31, 2025, the Company has non-capital loss carry forwards of approximately $10,169,000 (September 30, 2024 – 3,703,000) which expire between 2037 and 2045. As at December 31, 2025, the Company has share issuance costs totaling approximately $5,827,000 (September 30, 2024 – $54,000), which have not been claimed for income tax purposes. Income tax attributes are subject to review and potential adjustments by tax authorities.
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