3. INVESTMENTS

a) Falcon Copper Corp. ("FCC")

Falcon Copper Corp., formerly Blue Copper Resources Corp, is a privately held company incorporated in Wyoming, United States. Prior to December 31, 2025, the Company consolidated FCC due to a majority representation on FCC's board of directors.

On December 31, 2025, FCC restructured its board such that the Company no longer had a controlling financial interest. Accordingly, the Company deconsolidated FCC in accordance with ASC 810, Consolidation.

Upon deconsolidation, the Company derecognized the assets, liabilities and non-controlling interests of FCC and recognized its retained investment in FCC at fair value of $17,829, based on FCC's share price of $0.31.

As of June 30, 2026 and December 31, 2025, the Company held 57,513,764 common shares of FCC, representing 33.69% of FCC's issued and outstanding shares. The investment is accounted for using the equity method with the continuity listed below:

Balance, December 31, 2025	$	17,829
Share of loss in associate		(7,438	)
Balance, June 30, 2026	$	10,391

The Company's share of FCC's net loss was based on FCC's unaudited net loss of $22,081 for the six months ended June 30, 2026. Based on its 33.69% ownership interest, the Company recognized its proportionate share of the loss in the Interim Financial Statements.

Summarized financial information of FCC is presented below:

Summarized balance sheet:

		June 30, 2026		December 31, 2025
Assets
Cash	$	11,918	$	24,090
Prepaid expenses		2,769		175
Mineral properties		3,275		1,550
Investment in associate		8,817		8,927
Total Assets	$	26,779	$	34,742

Liabilities
Accounts payable & accrued liabilities	$	766	$	1,259
Convertible debentures		31,766		24,364
Derivative liabilities		9,850		10,490
Total Liabilities	$	42,382	$	36,113

Summarized statement of loss

		Three months ended June 30, 2026			Three months ended June 30, 2025		Six months ended June 30, 2026			Six months ended June 30, 2025
Operating expenses
General and administrative expenses	$	300		$	72	$	641		$	94
Exploration & evaluation		1,398			24		1,474			99
Professional fees		2,556			283		4,483			855
Salaries & benefits		5,725			215		8,045			883
Travel		130			1		240			5
Total operating expenses		10,109			595		14,883			1,936

Interest expense		2			7		3			11
Fair value gain on derivative liability		(3,498	)		-		(641	)		-
Other income		(98	)		-		(138	)		-
Accretion expense		4,343			-		7,864			-
Share of loss in associate		75			-		110			-
Net loss	$	10,933		$	602	$	22,081		$	1,947

b) FCC Warrants

As of December 31, 2025, the Company held 6,564,180 FCC share purchase warrants classified as financial assets with a fair value of $719. The warrants are revalued at each period end, with changes in fair value recognized in the Condensed Interim Consolidated Statements of Operations and Comprehensive Loss.

Each warrant entitles the Company to acquire one common share of FCC for a period of five years. The price is variable and determined based on the lower of a valuation cap or discounts to future financing or market prices.

As at June 30, 2026, the fair value of the warrants was $666, which was measured using a Monte Carlo simulation method.

The following table summarizes the continuity of the FCC warrants during the six months ended June 30, 2026:

Balance, December 31, 2025	$	719
Unrealized gain on investments		(53	)
Balance, June 30, 2026	$	666