The Hoidas Lake Rare Earth Element Project comprises 14 contiguous mineral claims totaling 12,522 hectares in Saskatchewan, Canada. The property is in the exploration and evaluation stage. Costs associated with acquisition of mineral properties are capitalized; exploration costs are expensed as incurred. No depletion has been recognized as the property has not been placed into production. Mineral claims remain in good standing through assessment credits with minimum required expenditures deferred through dates ranging from October 2027 to June 2029.

During the three months ended June 30, 2026, $1.0 million was reclassified from project deposits to construction in progress as the Company has received or otherwise obtained control of identifiable equipment related to its SRC commercial-scale metallization facility. Construction in progress is not depreciated until the related assets are placed in service. See Note 5 – Prepaid Expenses and Project Deposits.

As of June 30, 2026, no impairment indicators were identified with respect to the Hoidas Lake mineral property or the Euclid facility fixed assets. Depreciation expense for the three months ended June 30, 2026, was included in depreciation and amortization expense in the condensed consolidated statements of operations.

Machinery and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Construction in progress represents costs incurred on assets not yet placed in service and is not depreciated. The Company evaluates mineral properties and machinery and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Mineral properties and machinery and equipment were $51.8 million and $50.9 million as of June 30, 2026, and December 31, 2025, respectively.

The following table presents mineral properties, machinery and equipment, and construction in progress as of June 30, 2026, and December 31, 2025 (in thousands)


	June 30, 2026 ($)		December 31, 2025 ($)
Mineral properties	$	50,532	$	50,532
Machinery and equipment	679		655
Construction in Progress	973		-

Less: Accumulated depreciation	(369)		(334)
Total mineral properties, machinery and equipment, and construction in progress	$	51,815	$	50,853