Exhibit 99.1
Anfield Energy Inc.
Condensed Interim Consolidated Financial Statements
For the Six Months Ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
Anfield Energy Inc.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)
(Unaudited)
| Notes | June 30, 2026 | December 31, 2025 | ||||||||
| Assets | ||||||||||
| Current Assets | ||||||||||
| Cash | $ | 1,800,044 | $ | 3,349,977 | ||||||
| Unbilled accounts receivable | 3 | 440,897 | – | |||||||
| Other receivables | 3 | 27,179 | 57,672 | |||||||
| Prepaids and deposits | 3, 4 | 1,702,095 | 1,447,634 | |||||||
| Marketable securities | 12,790 | 19,884 | ||||||||
| Deferred financing costs | – | 619,762 | ||||||||
| 3,983,005 | 5,494,929 | |||||||||
| Non-current Assets | ||||||||||
| Insurance premium | 5 | 208,026 | 424,083 | |||||||
| Reclamation bonds | 5,6 | 17,637,535 | 16,725,199 | |||||||
| Deposits on equipment | 4 | 1,250,179 | 1,645,476 | |||||||
| Property and equipment | 3, 5 | 26,464,322 | 21,814,880 | |||||||
| Exploration and evaluation assets | 6 | 40,425,370 | 37,980,680 | |||||||
| Right-of-use asset | 7 | 473,408 | – | |||||||
| Goodwill | 3 | 4,697,342 | – | |||||||
| 91,156,182 | 78,590,318 | |||||||||
| Total Assets | $ | 95,139,187 | $ | 84,085,247 | ||||||
| Liabilities | ||||||||||
| Current Liabilities | ||||||||||
| Accounts payable and accrued liabilities | 3, 8 | $ | 2,247,533 | $ | 1,242,676 | |||||
| Due to related parties | 9 | 248,525 | 278,502 | |||||||
| Lease liability | 10 | 89,547 | – | |||||||
| Deferred consideration on acquisition | 3,12 | 1,713,397 | – | |||||||
| Unearned revenue | 7,106 | – | ||||||||
| 4,306,108 | 1,521,178 | |||||||||
| Long-term Liabilities | ||||||||||
| Asset retirement obligations | 11 | 24,971,062 | 23,619,386 | |||||||
| Deferred consideration on acquisition | 3,12 | 2,611,463 | – | |||||||
| Loans payable | 13 | 13,728,003 | 12,151,389 | |||||||
| Lease liability | 10 | 328,865 | – | |||||||
| Total Liabilities | 45,945,501 | 37,291,953 | ||||||||
| Equity | ||||||||||
| Share capital | 14 | $ | 143,999,949 | $ | 130,440,944 | |||||
| Equity reserve | 14 | 3,091,863 | 14,840 | |||||||
| Stock option reserve | 14 | 9,360,839 | 9,360,839 | |||||||
| Warrant reserve | 14 | 8,507,962 | 7,605,901 | |||||||
| Foreign exchange reserve | 14 | 3,613,122 | 2,725,132 | |||||||
| Deficit | (119,380,049 | ) | (103,354,362 | ) | ||||||
| Total Equity | 49,193,686 | 46,793,294 | ||||||||
| Total Equity and Liabilities | $ | 95,139,187 | $ | 84,085,247 | ||||||
Subsequent events (Note 19)
Approved and authorized on August 14, 2026, on behalf of the Board of Directors:
| “Corey Dias” | “Laara Shaffer” | |
| Director | Director |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
| Page 1 |
Anfield Energy Inc.
Condensed Interim Consolidated Statements of Comprehensive Loss
(Expressed in Canadian Dollars)
(Unaudited)
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||
| Notes | 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Revenue | $ | 744,766 | $ – | $ | 744,766 | $ – | ||||||||||||
| Cost of sales | (182,292 | ) | – | (182,292 | ) | – | ||||||||||||
| Gross profit | 562,474 | – | 562,474 | – | ||||||||||||||
| Expenses | ||||||||||||||||||
| Amortization of right-of-use asset | 7 | 25,627 | – | 51,020 | – | |||||||||||||
| Consulting | 9 | 1,028,096 | 427,187 | 1,542,585 | 856,332 | |||||||||||||
| Depreciation | 5 | 106,125 | 979 | 157,765 | 1,994 | |||||||||||||
| Director’s fees and audit committee | 9 | 65,000 | 57,500 | 130,000 | 110,000 | |||||||||||||
| Exploration and evaluation expenditures | 6,9 | 3,284,294 | 1,922,805 | 6,445,947 | 3,212,141 | |||||||||||||
| General and administrative | 9 | 420,043 | 34,337 | 695,288 | 60,507 | |||||||||||||
| Indemnification support fee | 89,849 | 96,589 | 178,461 | 140,784 | ||||||||||||||
| Insurance | 288,432 | 13,200 | 411,129 | 26,400 | ||||||||||||||
| (Gain) loss on foreign exchange | (264,484 | ) | 645,057 | (527,953 | ) | 669,215 | ||||||||||||
| Payroll expense | 886,044 | – | 1,133,016 | – | ||||||||||||||
| Professional fees | 9 | 523,910 | 324,834 | 1,176,879 | 699,270 | |||||||||||||
| Shareholder communications | 107,976 | 47,036 | 159,728 | 84,195 | ||||||||||||||
| Share-based compensation | 9,14 | 930,074 | – | 2,265,670 | – | |||||||||||||
| Transfer agent and filing fees | 48,382 | 192,955 | 121,643 | 252,905 | ||||||||||||||
| Total expenses | 7,539,368 | 3,762,479 | 13,941,178 | 6,113,743 | ||||||||||||||
| Net loss before other items | (6,976,894 | ) | (3,762,479 | ) | (13,378,704 | ) | (6,113,743 | ) | ||||||||||
| Other items | ||||||||||||||||||
| Accretion expense of discount and interest expense on loans payable | 13 | (556,019 | ) | (484,078 | ) | (1,091,765 | ) | (735,657 | ) | |||||||||
| Accretion expense of discount on deferred consideration | 12 | (60,571 | ) | – | (60,571 | ) | – | |||||||||||
| Accretion expense for asset retirement obligations | 11 | (243,290 | ) | (261,671 | ) | (479,351 | ) | (527,211 | ) | |||||||||
| Compensation expense | 13 | (1,284,061 | ) | – | (1,284,061 | ) | – | |||||||||||
| Interest income | 149,201 | 168,636 | 295,982 | 286,354 | ||||||||||||||
| Interest on lease liability | 10 | (10,014 | ) | – | (19,694 | ) | – | |||||||||||
| Other income (expense) | – | (116 | ) | – | 6,263 | |||||||||||||
| Unrealized gain (loss) on marketable securities | 2,630 | 11,625 | (7,523 | ) | (11,927 | ) | ||||||||||||
| Net loss | (8,979,018 | ) | (4,328,083 | ) | (16,025,687 | ) | (7,095,921 | ) | ||||||||||
| Other comprehensive loss | ||||||||||||||||||
| Other comprehensive loss that may be reclassified to profit or loss: | ||||||||||||||||||
| Exchange differences on translating foreign operations | 462,044 | (1,953,514 | ) | 887,990 | (2,039,319 | ) | ||||||||||||
| Total comprehensive loss | $ | (8,516,974 | ) | $ | (6,281,597 | ) | $ | (15,137,697 | ) | $ | (9,135,240 | ) | ||||||
| Loss per share – basic and diluted | $ | (0.49 | ) | $ | (0.28 | ) | $ | (0.90 | ) | $ | (0.47 | ) | ||||||
| Weighted average shares outstanding – basic and diluted | 18,229,481 | 15,322,067 | 17,830,769 | 15,152,080 | ||||||||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
| Page 2 |
Anfield Energy Inc.
Condensed Interim Consolidated Statements of Changes in Equity
(Expressed in Canadian Dollars)
(Unaudited)
| Share capital | ||||||||||||||||||||||||||||||||
| Number of shares | Amount | Equity reserve | Stock option reserve | Warrant reserve | Foreign exchange reserve | Deficit | Total equity | |||||||||||||||||||||||||
| Balance, December 31, 2024 | 13,789,728 | $ | 110,528,937 | $ – | $ | 6,991,160 | $ | 7,411,788 | $ | 4,487,177 | $ | (84,544,667 | ) | $ | 44,874,395 | |||||||||||||||||
| Shares issued for cash | 1,428,572 | 15,000,000 | – | – | – | – | – | 15,000,000 | ||||||||||||||||||||||||
| Shares issued for exploration and evaluation assets | 169,726 | 763,768 | – | – | – | – | – | 763,768 | ||||||||||||||||||||||||
| Shares issued upon exercise of warrants | 6,796 | 45,297 | – | – | (4,813 | ) | – | – | 40,484 | |||||||||||||||||||||||
| Warrants issued for credit facility | – | – | – | – | 532,967 | – | – | 532,967 | ||||||||||||||||||||||||
| Comprehensive loss for the period | – | – | – | – | – | (2,039,319 | ) | (7,095,921 | ) | (9,135,240 | ) | |||||||||||||||||||||
| Balance, June 30, 2025 | 15,394,822 | $ | 126,338,002 | $ – | $ | 6,991,160 | $ | 7,939,942 | $ | 2,447,858 | $ | (91,640,588 | ) | $ | 52,076,374 | |||||||||||||||||
| Balance, December 31, 2025 | 15,942,823 | $ | 130,440,944 | $ | 14,840 | $ | 9,360,839 | $ | 7,605,901 | $ | 2,725,132 | $ | (103,354,362 | ) | $ | 46,793,294 | ||||||||||||||||
| Shares issued for cash | 2,242,153 | 13,874,360 | – | – | – | – | – | 13,874,360 | ||||||||||||||||||||||||
| Share issuance costs | – | (697,355 | ) | – | – | – | – | – | (697,355 | ) | ||||||||||||||||||||||
| Shares and warrants issued upon modification of credit facility | 50,000 | 382,000 | – | – | 902,061 | – | – | 1,284,061 | ||||||||||||||||||||||||
| RSU issued to settle debt | – | – | 811,353 | – | – | – | – | 811,353 | ||||||||||||||||||||||||
| Share-based compensation | – | – | 2,265,670 | – | – | – | – | 2,265,670 | ||||||||||||||||||||||||
| Comprehensive loss for the period | – | – | – | – | – | 887,990 | (16,025,687 | ) | (15,137,697 | ) | ||||||||||||||||||||||
| Balance, June 30, 2026 | 18,234,976 | $ | 143,999,949 | $ | 3,091,863 | $ | 9,360,839 | $ | 8,507,962 | $ | 3,613,122 | $ | (119,380,049 | ) | $ | 49,193,686 | ||||||||||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
| Page 3 |
Anfield Energy Inc.
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in Canadian Dollars)
(Unaudited)
For the six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss | $ | (16,025,687 | ) | $ | (7,095,921 | ) | ||
| Adjustments for non-cash items: | ||||||||
| Accretion of asset retirement obligations | 479,351 | 527,211 | ||||||
| Accretion of discount and interest expense on loan payable | 1,091,765 | 735,657 | ||||||
| Accretion of deferred consideration | 60,571 | – | ||||||
| Amortization of right-of-use asset | 51,020 | – | ||||||
| Compensation expense | 1,284,061 | – | ||||||
| Depreciation | 157,765 | 1,994 | ||||||
| Foreign exchange | (1,393,359 | ) | 94,294 | |||||
| Interest on lease liability | 19,694 | – | ||||||
| Share-based compensation | 2,265,670 | – | ||||||
| Unrealized loss on marketable securities | 7,523 | 11,927 | ||||||
| Changes in non-cash working capital: | ||||||||
| Unbilled accounts receivable | 152,059 | – | ||||||
| Other receivables | 30,493 | 5,156 | ||||||
| Prepaids and deposits | 331,057 | 423,977 | ||||||
| Accounts payable and accrued liabilities | 1,731,213 | (728,158 | ) | |||||
| Due to related parties | 781,376 | 176,997 | ||||||
| Unearned revenue | 7,106 | – | ||||||
| Net cash flows used in operating activities | (8,968,322 | ) | (5,846,866 | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Acquisition of exploration and evaluation assets | (1,024,688 | ) | (568,136 | ) | ||||
| Investment income from reclamation bond reinvested | (295,977 | ) | (325,018 | ) | ||||
| Purchase of property and equipment | (2,953,293 | ) | – | |||||
| Reclamation deposit | – | (712,893 | ) | |||||
| Security deposits paid for property and equipment | (344,340 | ) | – | |||||
| Acquisition of BRS | (2,053,635 | ) | – | |||||
| Cash acquired from BRS acquisition | 417,084 | – | ||||||
| Net cash flows used in investing activities | (6,254,849 | ) | (1,606,047 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds from share issuances, net of share issuance costs | 13,796,767 | 15,000,000 | ||||||
| Repayment of loan payable and interest | – | (6,161,721 | ) | |||||
| Proceeds from loan payable, net | – | 8,212,407 | ||||||
| Proceeds from exercise of warrants | – | 40,484 | ||||||
| Payments of lease liabilities | (123,529 | ) | – | |||||
| Net cash flows from financing activities | 13,673,238 | 17,091,170 | ||||||
| (Decrease) increase in cash | (1,549,933 | ) | 9,638,257 | |||||
| Cash, beginning | 3,349,977 | 1,350,411 | ||||||
| Cash, ending | $ | 1,800,044 | $ | 10,988,668 | ||||
| Non-cash Investing and Financing Activities: | ||||||||
| Fair value of warrants issued for Credit Facility | $ | 902,061 | $ | 532,967 | ||||
| Fair value of shares issued for Credit Facility | $ | 382,000 | $ – | |||||
| Fair value of warrants reclassified to share capital upon exercise | $ – | $ | 4,813 | |||||
| Shares issued for exploration and evaluation assets | $ – | $ | 763,768 | |||||
| RSU issued to settle amounts due to related parties | $ | 811,353 | $ – | |||||
| Acquisition cost of property and equipment included in accounts payable and accrued liabilities | $ | 22,316 | $ – | |||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
| Page 4 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 1. | Nature of Operations |
Anfield Energy Inc. (the “Company”) is a publicly listed company incorporated in British Columbia on July 12, 1989. The Company’s shares are listed on the TSX Venture Exchange (“TSX.V”) under the symbol “AEC”, the Nasdaq Capital Market LLC (“NASDAQ”) under the symbol “AEC”, and the Frankfurt Stock Exchange under the symbol “OAD”. On September 16, 2022, 1,666,667 warrants of the Company commenced trading on TSX.V under the symbol “AEC.WT”. The Company is engaged in mineral development and production, and provides consulting services for the mining, geology, civil engineering, and water resources sectors. The Company’s head office and its registered and records offices are located at Suite 2005, 4390 Grange Street, Burnaby, British Columbia, V5H 1P6.
| 2. | Material Accounting Policy Information and Basis of Presentation |
| a) | Basis of Preparation and Statement of Compliance |
These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting” of the IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”). These condensed interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements as at and for the year ended December 31, 2025 as some disclosures from the annual consolidated financial statements have been condensed or omitted.
These condensed interim consolidated financial statements were prepared using accounting policies consistent with those in the audited consolidated financial statements as at and for the year ended December 31, 2025, except for the following additional policies.
| b) | Business Combinations |
The acquisition method of accounting is used to account for the acquisition of businesses by the Company. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued, and debt incurred or assumed at the acquisition date. Costs directly attributable to the acquisition are expensed in the period incurred. The fair value of the assets and liabilities acquired is determined and compared to the fair value of the consideration paid. If the fair value of the consideration paid exceeds the fair value of the net assets acquired, then goodwill is recognized.
| c) | Goodwill |
Goodwill represents the excess of value of the consideration transferred over the fair value of the net identifiable assets and liabilities acquired in a business combination. Goodwill is allocated to the cash generating unit to which it relates.
| d) | Revenue Recognition |
The Company primarily derives revenue from the provision of professional services for engineering, mine development, construction management and geology consulting. Revenue from providing services is recognized over time as the services are rendered.
| Page 5 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 2. | Material Accounting Policy Information and Basis of Presentation (continued) |
| e) | Leases |
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the commencement date, the lease liability is recognized at the present value of the future lease payments and discounted using the interest rate implicit in the lease or the Company’s incremental borrowing rate. A corresponding right-of-use (“ROU”) asset is recognized at the amount of the lease liability, adjusted for any lease incentives received and initial direct costs incurred. Over the term of the lease, financing expense is recognized on the lease liability using the effective interest rate method and charged to net income, lease payments are applied against the lease liability and depreciation on the ROU asset is recorded by class of underlying asset.
The lease term is the non-cancellable period of a lease plus periods covered by an optional lease extension option if it is reasonably certain that the Company will exercise the option to extend. Conversely, periods covered by an option to terminate are included if the Company does not expect to end the lease during that time frame. Leases with a term of less than twelve months or leases for underlying low value assets are recognized as an expense in net income on a straight-line basis over the lease term.
| f) | Accounting Standards not yet Effective |
Accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have a significant impact on the Company’s financial statements, except for IFRS 18 “Presentation and Disclosure in Financial Statements”.
On April 9, 2024, the IASB issued IFRS 18, which introduced new requirements for improved comparability in the statement of profit or loss, enhanced transparency of management-defined performance measures and more useful grouping of information in the financial statements. The standard is effective for annual reporting periods beginning on or after January 1, 2027. The Company is currently evaluating the impact to the financial statements.
| g) | Significant Management Judgement and Estimates in Applying Accounting Policies |
Significant estimates and assumptions
The preparation of the condensed interim consolidated financial statements in accordance with IFRS requires the Company to make estimates and assumptions concerning the future. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. As such, actual results may differ from those estimates and judgments. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised. Significant estimates and judgements used in the preparation of these condensed consolidated financial statements remained unchanged from those disclosed in the Company’s annual consolidated financial statements for the year ended December 31, 2025, except for the following additional significant estimates:
| ● | The measurement of the purchase price and identification of assets acquired and liabilities assumed in business combinations; and | |
| ● | Expected
credit losses on trade receivables and unbilled accounts receivable. |
| Page 6 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 3. | Acquisition of BRS Inc. |
On May 8, 2026, the Company closed a stock purchase agreement with the Chief Operating Officer (“COO”) of the Company and acquired all of the outstanding shares of BRS Inc. (“BRS”), a company controlled by the COO (the “Transaction”). In consideration of the acquisition of BRS, the Company is required to complete a series of cash payments to the COO totaling US$5,000,000. On closing, the Company paid the COO $2,053,635 (US$1,500,000), with a further US$1,500,000 payable on the first anniversary of closing and a further US$2,000,000 on the second anniversary of closing. The Transaction was a related party transaction.
The preliminary purchase price allocation for the acquisition of BRS is summarized as follows:
| Preliminary acquisition consideration: | ||||
| Cash | $ | 2,053,635 | ||
| Deferred consideration (Note 12) | 4,106,929 | |||
| Total preliminary acquisition consideration | $ | 6,160,564 | ||
| Fair value of net assets acquired | ||||
| Cash | $ | 417,084 | ||
| Accounts receivable | 477,075 | |||
| Unbilled accounts receivable | 115,881 | |||
| Prepaid expenses | 42,296 | |||
| Property, plant and equipment: Vehicles | 453,292 | |||
| Property, plant, and equipment: Office equipment | 59,462 | |||
| Goodwill | 4,697,342 | |||
| Accounts payable and accrued liabilities | (101,868 | ) | ||
| Total fair value of net assets acquired | $ | 6,160,564 | ||
In accordance with the acquisition method of accounting, the acquisition cost has been allocated to the identifiable underlying assets acquired and liabilities assumed, based upon their estimated fair value at the date of acquisition.
The Company will be required to determine the fair value of customer relationships and any other intangible assets that may exist with the remaining balance allocated to goodwill. Accordingly, the purchase price is a preliminary allocation.
The goodwill represents the expected synergies, future income and growth and reduction in exploration and evaluation expenditure expected to be achieved from integrating BRS into the Company’s existing business. The goodwill was allocated to the BRS CGU.
The receivables acquired in the transaction had a fair value of $477,075, which approximated the gross contractual amounts receivable. The best estimate at the acquisition date of the contractual cash flows for which collection is uncertain is $0.
BRS revenue for the period of May 8, 2026, to June 30, 2026, was $744,766, and net profit was $182,292. BRS revenue for the period of January 1, 2026, to June 30, 2026, was $2,364,921, and net profit was $2,043,426.
| 4. | Prepaids and Deposits |
June 30, 2026 | December
31, 2025 | |||||||
| Prepaid exploration and evaluation expenditures | $ | 406,217 | $ | 1,197,155 | ||||
| Prepaid consulting fees | 177,947 | 192,473 | ||||||
| Other prepaid expenses | 1,117,931 | 58,006 | ||||||
| $ | 1,702,095 | $ | 1,447,634 | |||||
At June 30, 2026, the Company held deposits of $1,250,179 (US$879,711) (December 31, 2025 – $1,645,476 (US$1,199,904)) towards the purchase of exploration and evaluation equipment, which are included in deposits on equipment.
| Page 7 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 5. | Property and Equipment |
Vehicles | Storage | Generators | Equipment | Water Tower | Mining Vent | Shootaring Mill | Office Equipment |
Total | ||||||||||||||||||||||||||||
| Cost | ||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | 28,515 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 22,418,338 | $ | – | $ | 22,446,853 | ||||||||||||||||||
| Additions | 289,522 | 310,731 | – | – | – | – | – | – | 600,253 | |||||||||||||||||||||||||||
| Change in ARO estimates | – | – | – | – | – | – | (134,751 | ) | – | (134,751 | ) | |||||||||||||||||||||||||
| Foreign exchange translation | (3,931 | ) | (5,952 | ) | – | – | – | – | (1,070,846 | ) | – | (1,080,729 | ) | |||||||||||||||||||||||
| Balance, December 31, 2025 | 314,106 | 304,779 | – | – | – | – | 21,212,741 | – | 21,831,626 | |||||||||||||||||||||||||||
| Additions | 1,109,424 | 61,890 | 265,780 | 1,034,837 | 34,116 | 19,534 | 1,315,792 | 59,462 | 3,900,835 | |||||||||||||||||||||||||||
| Foreign exchange translation | 51,796 | 13,768 | 9,770 | 27,663 | 1,413 | 663 | 804,386 | 2,260 | 911,719 | |||||||||||||||||||||||||||
| Balance, June 30, 2026 | $ | 1,475,326 | $ | 380,437 | $ | 275,550 | $ | 1,062,500 | $ | 35,529 | $ | 20,197 | $ | 23,332,919 | $ | 61,722 | $ | 26,644,180 | ||||||||||||||||||
| Depreciation | ||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | 8,147 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 8,147 | ||||||||||||||||||
| Depreciation | 7,153 | 1,976 | – | – | – | – | – | – | 9,129 | |||||||||||||||||||||||||||
| Foreign exchange translation | (504 | ) | (26 | ) | – | – | – | – | – | – | (530 | ) | ||||||||||||||||||||||||
| Balance, December 31, 2025 | 14,796 | 1,950 | – | – | – | – | – | – | 16,746 | |||||||||||||||||||||||||||
| Depreciation | 89,602 | 13,248 | 17,818 | 30,146 | 2,872 | 350 | – | 3,729 | 157,765 | |||||||||||||||||||||||||||
| Foreign exchange translation | 3,202 | 481 | 552 | 933 | 89 | 11 | – | 79 | 5,347 | |||||||||||||||||||||||||||
| Balance, June 30, 2026 | $ | 107,600 | $ | 15,679 | $ | 18,370 | $ | 31,079 | $ | 2,961 | $ | 361 | $ | – | $ | 3,808 | $ | 179,858 | ||||||||||||||||||
| Carrying amounts | ||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2025 | $ | 299,310 | $ | 302,829 | $ | – | $ | – | $ | – | $ | – | $ | 21,212,741 | $ | – | $ | 21,814,880 | ||||||||||||||||||
| Balance, June 30, 2026 | $ | 1,367,726 | $ | 364,758 | $ | 257,180 | $ | 1,031,421 | $ | 32,568 | $ | 19,836 | $ | 23,332,919 | $ | 57,914 | $ | 26,464,322 | ||||||||||||||||||
| Page 8 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 5. | Property and Equipment (continued) |
Reclamation Bonds
The Company is required to hold bonds to meet reclamation requirements in connection with the Shootaring Mill.
During the year ended December 31, 2025, the Company recorded a bond premium of US$479,952 as insurance, which would create an obligation for the surety company to cover the difference between the bond requirement and the cash collateral. The bond premium is amortized over one year. During the six months ended June 30, 2026, the Company recorded $350,105 (2025 - $337,592) as insurance expense which was included in the exploration and evaluation expenditures. At June 30, 2026, $208,026 (December 31, 2025 - $424,083) was recorded in prepaid insurance premium for the reclamation bond requirements.
At June 30, 2026, the Company recorded the cash collateral of US$12,369,561 ($17,578,692) (December 31, 2025 – US$12,154,840 ($16,668,418)) as a reclamation bond.
| 6. | Exploration and Evaluation Assets |
As at June 30, 2026, the Company held interests in uranium exploration properties in Utah, Arizona and New Mexico (“Uranium Properties”); uranium/vanadium properties in Colorado (Highbury and Slick Rock Project) and in Arizona (Artillery Project); and a gold project in Arizona also known as Newsboy Project.
A continuity of exploration and evaluation assets is as follows:
| Arizona Properties | ||||||||||||||||||||
| Uranium Properties | Colorado Properties | Newsboy Gold | Artillery Peak | Total | ||||||||||||||||
| Balance, December 31, 2025 | $ | 17,561,991 | $ | 13,725,624 | $ | 2,487,299 | $ | 4,205,766 | $ | 37,980,680 | ||||||||||
| Acquisition costs | – | 1,024,688 | – | – | 1,024,688 | |||||||||||||||
| Intercompany transfer | 202,506 | (202,506 | ) | – | – | – | ||||||||||||||
| Foreign exchange | 722,850 | 454,167 | 90,299 | 152,686 | 1,420,002 | |||||||||||||||
| Balance, June 30, 2026 | $ | 18,487,347 | $ | 15,001,973 | $ | 2,577,598 | $ | 4,358,452 | $ | 40,425,370 | ||||||||||
The following exploration and evaluation expenditures were included in comprehensive loss for the three months ended June 30, 2026 and 2025 are as follows:
| Uranium Properties | Colorado Properties | Newsboy Gold | Artillery Peak | Total | ||||||||||||||||
| Consulting | $ | 473,017 | $ | (185,701 | ) | $ | – | $ | – | $ | 287,316 | |||||||||
| Sundry field | 439,018 | 155,297 | – | – | 594,315 | |||||||||||||||
| Sampling, assaying, geophysics | 199,488 | 40,064 | – | – | 239,552 | |||||||||||||||
| License, filing and insurance | 566,281 | 467,046 | 9,347 | – | 1,042,674 | |||||||||||||||
| Lease and royalty | 193,045 | 105,873 | – | – | 298,918 | |||||||||||||||
| Property tax | 1,490 | 44,522 | – | – | 46,012 | |||||||||||||||
| Drilling | 5,113 | 107,730 | – | – | 112,843 | |||||||||||||||
| Salaries, wages and related expense | 142,375 | 426,988 | – | – | 569,363 | |||||||||||||||
| Reclamation | – | 4,207 | – | – | 4,207 | |||||||||||||||
| Equipment rental | 89,094 | – | – | – | 89,094 | |||||||||||||||
| Total for the three months ended June 30, 2026 | $ | 2,108,921 | $ | 1,166,026 | $ | 9,347 | $ | – | $ | 3,284,294 | ||||||||||
| Page 9 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 6. | Exploration and Evaluation Assets (Continued) |
| Uranium Properties | Colorado Properties | Newsboy Gold | Artillery Peak | Total | ||||||||||||||||
| Consulting | $ | 147,768 | $ | 672,389 | $ | – | $ | – | $ | 820,157 | ||||||||||
| Sundry field | 60,267 | 6,668 | – | – | 66,935 | |||||||||||||||
| Sampling, assaying, geophysics | 90,674 | 39,480 | – | – | 130,154 | |||||||||||||||
| License, filing and insurance | 472,022 | 103,714 | 9,339 | – | 585,075 | |||||||||||||||
| Lease and royalty | 181,333 | 141,912 | – | – | 323,245 | |||||||||||||||
| Drilling | (1,709 | ) | (221 | ) | – | – | (1,930 | ) | ||||||||||||
| Property tax | – | (831 | ) | – | – | (831 | ) | |||||||||||||
| Total for the three months ended June 30, 2025 | $ | 950,355 | $ | 963,111 | $ | 9,339 | $ | – | $ | 1,922,805 | ||||||||||
The following exploration and evaluation expenditures were included in comprehensive loss for the six months ended June 30, 2026 and 2025 are as follows:
| Uranium Properties | Colorado Properties | Newsboy Gold | Artillery Peak | Total | ||||||||||||||||
| Consulting | $ | 1,134,901 | $ | 215,443 | $ | – | $ | – | $ | 1,350,344 | ||||||||||
| Sundry field | 609,058 | 241,314 | – | – | 850,372 | |||||||||||||||
| Sampling, assaying, geophysics | 251,263 | 61,817 | – | – | 313,080 | |||||||||||||||
| License, filing and insurance | 1,147,905 | 567,771 | 18,609 | – | 1,734,285 | |||||||||||||||
| Lease and royalty | 398,458 | 212,697 | – | – | 611,155 | |||||||||||||||
| Property tax | 1,490 | 44,522 | – | – | 46,012 | |||||||||||||||
| Drilling | 5,113 | 448,690 | – | – | 453,803 | |||||||||||||||
| Salaries, wages and related expense | 231,771 | 691,505 | – | – | 923,276 | |||||||||||||||
| Reclamation | – | 4,207 | – | – | 4,207 | |||||||||||||||
| Equipment rental | 159,413 | – | – | – | 159,413 | |||||||||||||||
| Total for the six months ended June 30, 2026 | $ | 3,939,372 | $ | 2,487,966 | $ | 18,609 | $ | – | $ | 6,445,947 | ||||||||||
| Uranium Properties | Colorado Properties | Newsboy Gold | Artillery Peak | Total | ||||||||||||||||
| Consulting | $ | 213,377 | $ | 810,709 | $ | – | $ | – | $ | 1,024,086 | ||||||||||
| Sundry field | 79,208 | 10,108 | – | – | 89,316 | |||||||||||||||
| Sampling, assaying, geophysics | 125,727 | 41,189 | – | – | 166,916 | |||||||||||||||
| License, filing and insurance | 919,748 | 212,462 | 19,033 | – | 1,151,243 | |||||||||||||||
| Lease and royalty | 342,695 | 289,621 | – | – | 632,316 | |||||||||||||||
| Drilling | 91,755 | 11,874 | – | – | 103,629 | |||||||||||||||
| Property tax | – | 44,635 | – | – | 44,635 | |||||||||||||||
| Total for the six months ended June 30, 2025 | $ | 1,772,510 | $ | 1,420,598 | $ | 19,033 | $ | – | $ | 3,212,141 | ||||||||||
| Page 10 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 6. | Exploration and Evaluation Assets (Continued) |
Uranium Properties
The Uranium Properties consist of the Shootaring Mill Project, Marysvale Uranium Project, Marquez-Juan Tafoya Uranium Project, and other Utah Properties.
Other Utah Properties
On June 11, 2024, the Company entered into a Uranium Mining Lease Agreement with Wayne Minerals Inc. to obtain mining rights on 127 unpatented mining claims in California and Utah for 5 years. The Company agreed to pay an annual lease payment of US$100,000. A production royalty of 3% will be paid on the total value of all minerals recovered and sold from the leased land. An advance royalty of US$50,000 is due annually beginning on May 30, 2029 and will be credited against production royalty until it has been fully recouped. The Company was also granted the sole and exclusive right and option to earn a 100% undivided interest in the leased land free and clear of all charges, royalties and encumbrances upon terms to be agreed between the lessor and the Company, at any time prior to the expiration of the 5-year term.
On August 1, 2025, the Company entered into a Uranium Mining Lease Agreement with ACCO Exploration LLC to obtain mining rights on 95 unpatented mining claims in Arizona for 5 years. The Company agreed to pay an annual lease payment of US$100,000 for the first year, US$150,000 for the second to fourth year and US$200,000 for the fifth year. A production royalty of 3% will be paid on the total value of all minerals recovered and sold from the leased land. An advance royalty of US$50,000 is due annually beginning on August 28, 2030 and will be credited against production royalty until it has been fully recouped. The Company was also granted the sole and exclusive right and option to earn a 100% undivided interest in the leased land free and clear of all charges, royalties and encumbrances upon terms to be agreed between the lessor and the Company, at any time prior to the expiration of the 5-year term.
Colorado Properties
The Colorado Properties consist of the Highbury Project, Slick Rock Project and Golden Eagle Project.
Highbury Project
The Highbury Project consists of nine past-producing uranium/vanadium properties in Colorado, collectively known as the West Slope Project.
In addition to the nine Department of Energy (DOE) leases originally included in the West Slope Project, the Company acquired twelve DOE leases in January 2024 which are associated with adjacent lode mining claims and leases in Montrose and San Miguel Counties in southwestern Colorado.
| Page 11 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 6. | Exploration and Evaluation Assets (Continued) |
slick rock project
During the year ended December 31, 2024, the Company paid US$25,406 for a reclamation bond held by the regulatory authorities and will be released to the Company on satisfactory restoration of the property. The reclamation bond balance was $36,105 (US$25,406) as at June 30, 2026 (December 31, 2025 – $34,840 (US$25,406)).
Golden Eagle Project
On January 2, 2024, HRI entered into a definitive agreement with Gold Eagle Mining Inc. (“GEM”) and Golden Eagle Uranium LLC (“GEU”) (collectively, “the Sellers”) to acquire a 100% interest in twelve Department of Energy (“DOE”) leases (“DOE Leases”) and associated data in various Counties in Colorado. The transaction closed on July 3, 2024. Pursuant to the last amendment on February 20, 2025, the Company agreed to pay the following consideration for the DOE Leases on the associated dates:
● At closing, US$500,000 in cash with US$100,000 to be paid on or before October 16, 2024 (paid) and US$400,000 to be paid on or before February 21, 2025 (paid);
● Issuance of 169,726 common shares representing a value of US$1,250,000 on or before February 21, 2025 (issued on May 6, 2025);
● US$750,000 in cash (paid on March 3, 2026) at the one-year anniversary of closing (the “One-Year Anniversary Payment”) with the option to extend the payment date for two subsequent 90-day periods (the “Extension Options”), subject to the following condition:
| a) | The Extension Options shall be at the sole discretion of the Company and may only be exercised in the event that the Company’s application for a NASDAQ listing and subsequent financing are delayed; and | |
| b) | The Company shall pay US$100,000 for each Extension Option that is exercised, with the Extension Option payments to be deducted from the One-Year Anniversary Payment. |
● US$1,000,000 in cash at the two-year anniversary of closing;
● US$1,000,000 in cash at the three-year anniversary of closing; and
● US$1,500,000 in cash at the four-year anniversary of closing.
Arizona Properties
The Arizona Properties consist of the Newsboy Gold Project and Artillery Peak Project.
Newsboy Gold Project
The Company has a US$12,000 reclamation bond held by the regulatory authorities and will be released to the Company on satisfactory restoration of the property. The reclamation bond balance was $17,054 as at June 30, 2026 (December 31, 2025 – $16,456).
Artillery Peak Project
The Artillery Peak consists of 250 unpatented mining claims in the uranium-rich Artillery Peak project area, located in Mohave County, Arizona, USA, consisting of the LiVada Claims and Dripping Springs Quartzite Project.
| Page 12 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 6. | Exploration and Evaluation Assets (Continued) |
Other Properties
Clay Borrow Project, Utah
On March 1, 2023, the Company entered into a clay mineral lease agreement with the School and Institutional Trust Lands Administration to lease 620.88 acres of land located in Garfield County, Utah, for a term of 10 years. Pursuant to the agreement, the Company agreed to pay an annual rent of a minimum US$500 or at the rate of US$2 for each acre and fractional acre situated within the boundaries of the property.
Commencing on the 10th anniversary of the agreement and until the lease terminates, the Company agreed to pay in advance an annual minimum royalty equal to three times the annual rent. In addition, the Company agreed to pay a production royalty equal to the greater of: (i) 10% of the gross value of the clay minerals sold under an arm’s length transaction, or (ii) US$1 per short ton of the clay minerals.
During the year ended December 31, 2023, the Company paid US$18,600 for a reclamation bond held by the regulatory authorities and will be released to the Company on satisfactory restoration of the property. During the year ended December 31, 2024, the Company received a refund of US$14,600. The reclamation bond balance was $5,685 (US$4,000) as at June 30, 2026 (December 31, 2025 – $5,485 (US$4,000)).
| 7. | Right of Use Asset |
On January 1, 2026, the Company entered into a lease agreement for an office space located in Riverton, Wyoming for a 5 year term, commencing on January 1, 2026 and expiring on December 31, 2030 (Note 10). The Company has recognized a right-of-use (“ROU”) asset in respect to this lease. The carrying amount of the ROU asset recognized and the movement during the period are as follows:
| Right of Use Asset | ||||
| Cost | ||||
| Balance, December 31, 2025 and 2024 | $ | – | ||
| Additions | 508,032 | |||
| Foreign exchange | 17,977 | |||
| Balance, June 30, 2026 | $ | 526,009 | ||
| Accumulated Amortization | ||||
| Balance, December 31, 2025 and 2024 | $ | – | ||
| Amortization | 51,020 | |||
| Foreign exchange | 1,581 | |||
| Balance, June 30, 2026 | $ | 52,601 | ||
| Carrying amounts | ||||
| Balance, December 31, 2025 | $ | – | ||
| Balance, June 30, 2026 | $ | 473,408 | ||
| Page 13 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 8. | Accounts Payable and Accrued Liabilities |
June 30, 2026 | December
31, 2025 | |||||||
| Trade payables | $ | 1,462,949 | $ | 738,444 | ||||
| Accrued liabilities | 784,584 | 504,232 | ||||||
| $ | 2,247,533 | $ | 1,242,676 | |||||
| 9. | Related Party Transactions and Balances |
| a) | Related Party Balances |
As at June 30, 2026, an amount of $248,525 (December 31, 2025 - $278,502) was owed to related parties. These amounts are unsecured, non-interest bearing and have no fixed terms of repayment.
As at June 30, 2026, an amount of $nil (December 31, 2025 - $956) was recorded in prepaid expenses for advances to a director of the Company for future consulting fees.
As at June 30, 2026, an amount of $2,708 (December 31, 2025 - $10,144) was recorded in prepaid expenses for advances to a director of the Company for property expenditures.
As at June 30, 2026, an amount of $7,411 (December 31, 2025 - $7,152) was recorded in prepaid expenses for advances to the Chief Operating Officer (“COO”) of the Company for future consulting fees.
| b) | Related Party Transactions |
The Company incurred the following transactions with companies that are controlled or managed by directors of the Company:
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Consulting fees and management bonus | $ | 12,900 | $ | 12,900 | $ | 25,800 | $ | 25,800 | ||||||||
| Consulting and professional fees (i) | 385,747 | 361,778 | 849,193 | 529,365 | ||||||||||||
| Legal fees | 62,314 | – | 124,058 | – | ||||||||||||
| Share-based compensation | 114,086 | – | 226,919 | – | ||||||||||||
| $ | 575,047 | $ | 374,678 | $ | 1,225,970 | $ | 555,165 | |||||||||
On May 8, 2026, the Company closed the acquisition of BRS with the COO of the Company and acquired all of the outstanding shares of BRS Inc. (“BRS”), a company controlled by the COO (Note 3).
| Page 14 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 9. | Related Party Transactions and Balances (continued) |
| b) | Related Party Transactions (continued) |
The Company has identified its directors and certain senior officers as its key management. Key management and director compensation during the six months ended June 30, 2026 and 2025, are as follows:
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Consulting fees and management bonus (ii) | $ | 887,267 | $ | 309,978 | $ | 1,230,213 | $ | 650,141 | ||||||||
| Director’s fees and audit committee fees | 65,000 | 57,500 | 130,000 | 110,000 | ||||||||||||
| Legal fees | – | 62,260 | – | 126,884 | ||||||||||||
| Auto and rent expense (i) | 37,035 | 43,899 | 73,732 | 58,978 | ||||||||||||
| Share-based compensation | 409,987 | – | 1,156,420 | – | ||||||||||||
| $ | 1,399,289 | $ | 473,637 | $ | 2,590,365 | $ | 946,003 | |||||||||
| (i) | These expenses are included in exploration and evaluation expenditures in the condensed interim consolidated statements of comprehensive loss. | |
| (ii) | During the six months ended June 30, 2026, the Company settled accrued compensation of $331,401 to the non-executive chairman of the Company through the vesting of 47,047 previously granted RSU’s and settled accrued compensation of $479,952 (US$350,010) to the COO of the Company through the vesting of 68,175 previously granted RSU’s. |
| Page 15 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 10. | Lease Liability |
On January 1, 2026, the Company entered into a lease agreement for an office space located in Riverton, Wyoming, for a 5 year term, commencing on January 1, 2026 and expiring on December 31, 2030. The Company has the option to pay US$8,000 per month or on a monthly basis or $7,500 per month if the Company elects to pay in advance a full year of rent. The Company elected the option to pay in advance the full year of rent in 2026 and intends to pay the full year of rent in advance on the first day of the year for the remaining term of the lease. The lease has been discounted using an interest rate of 9.99% as estimated incremental borrowing rate of the Company for similar assets.
| Lease Liability | ||||
| Balance December 31, 2025 and 2024 | $ | – | ||
| Additions | 384,502 | |||
| Interest on lease liabilities | 19,694 | |||
| Foreign exchange | 14,216 | |||
| Balance June 30, 2026 | 418,412 | |||
| Less: current portion of lease liabilities | (89,547 | ) | ||
| Long-term portion | 328,865 | |||
The following is a schedule by years of future minimum lease payments under the remaining lease together with the present value of the net minimum lease payments as of June 30, 2026:
| Years ending December 31: | ||||
| 2027 | $ | 127,901 | ||
| 2028 | 127,901 | |||
| 2029 | 127,901 | |||
| 2030 | 127,901 | |||
| Net minimum lease payments | 511,604 | |||
| Less: amount representing interest payments | (93,192 | ) | ||
| Present value of net minimum lease payments | 418,412 | |||
| Less: current portion | (89,547 | ) | ||
| Long-term portion | $ | 328,865 | ||
| Page 16 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 11. | Asset Retirement Obligations |
Laws and regulations concerning environmental protection affect the Company’s exploration and operations. Under current regulations, the Company is required to meet performance standards to minimize environmental impact from its activities and to perform site restoration and other closure activities. The Company’s provision for future site closure and reclamation costs is based on known requirements.
A continuity of the Company’s provision for site reclamation and closure is as follows:
| Shootaring Mill | West Slope | Papoose | Totals | |||||||||||||
| Balance December 31, 2025 | $ | 18,304,595 | $ | 4,986,662 | $ | 328,129 | $ | 23,619,386 | ||||||||
| Accretion | 382,942 | 90,028 | 6,382 | 479,352 | ||||||||||||
| Foreign exchange | 676,390 | 183,824 | 12,110 | 872,324 | ||||||||||||
| Balance June 30, 2026 | $ | 19,363,927 | $ | 5,260,514 | $ | 346,621 | $ | 24,971,062 | ||||||||
| a) | Shootaring Mill |
The Company’s estimate of the environmental rehabilitation provision arising from the Shootaring Mill (Note 5) at June 30, 2026, was $19,363,927 (US$13,625,777) (December 31, 2025 – $18,304,595 (US$13,347,965)). This estimate was based upon an undiscounted risk-adjusted future cost of $23,587,560 (US$16,597,808) (December 31, 2025 – $22,761,238 (US$16,597,808)), an annual inflation rate of 2.20% and discount rate of 4.24%. The closure and reclamation expenditure is expected to be incurred in 2036.
| b) | West Slope Project |
The Company’s estimate of the environmental rehabilitation provision arising from the West Slope Project (Note 6) at June 30, 2026, was $5,260,514 (US$3,701,655) (December 31, 2025 – $4,986,662 (US$3,636,343)). This estimate was based upon an undiscounted risk-adjusted future cost of $5,481,326 (US$3,857,033) (December 31, 2025 – $5,289,304 (US$3,857,033)), an annual inflation rate of 2.20% and a discount rate of 3.66%. The closure and reclamation expenditure is expected to be incurred in 2030.
| c) | Papoose Property |
The Company’s estimate of the environmental rehabilitation provision arising from the Papoose property (Note 6) at June 30, 2026, was $346,621 (US$243,907) (December 31, 2025 – $328,129 (US$239,277)). This estimate was based upon an undiscounted risk-adjusted future cost of $382,790 (US$269,357) (December 31, 2025 – $369,380 (US$269,357)), an annual inflation rate of 2.20% and risk adjusted discount rate of 3.94%. The closure and reclamation expenditure is expected to be incurred in 2032.
| Page 17 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 12. | Deferred Consideration |
In connection with the acquisition of BRS which closed on May 8, 2026 (Note 3), the Company is required to make future payments of $2,131,688 (US$1,500,000) payable on the first anniversary of closing and a further $2,842,250 (US$2,000,000) on the second anniversary of closing. The deferred consideration has been discounted using an interest rate of 9.99% as an estimated incremental borrowing rate of the Company for similar liabilities.
| Deferred Consideration | ||||
| Balance December 31, 2025 | $ | – | ||
| Additions (Note 3) | 4,791,815 | |||
| Discount | (684,886 | ) | ||
| Interest expense | 60,571 | |||
| Foreign exchange | 157,360 | |||
| Balance June 30, 2026 | 4,324,860 | |||
| Less: current portion of deferred consideration | (1,713,397 | ) | ||
| Long-term portion | $ | 2,611,463 | ||
| 13. | Loans Payable |
Credit Facility
On September 26, 2023, the Company entered into a loan agreement (the “Loan Agreement”) for a non-revolving term credit facility (the “Credit Facility”) with Extract Advisors LLC as agent (the “Agent”) for Extract Capital Master Fund Ltd. (the “Lender”), which was amended on October 6, 2023, April 15, 2024 and March 17, 2025. The Credit Facility of $4,300,000 and the additional tranche of US$6,000,000 mature on September 26, 2028, bears a coupon of the Secured Overnight Financing Rate (“SOFR”) plus 5.0% per annum, payable semi-annually in U.S. dollars. The Company, with written notice, may elect to capitalize the interest payable on the Credit Facility semi-annually, in arrears, at a rate of SOFR plus 7.0%.
The Credit Facility contains a mandatory prepayment clause where the Company must pay certain amount of proceeds from sale of secured assets, debt financings, or royalty sale transactions, to the Agent.
The Credit Facility is secured by a corporate guarantee and share pledge from each of the subsidiaries of the Company and contains certain other customary provisions, including certain covenants and default conditions in favour of the Lender.
On January 29, 2026, the Loan Agreement was amended to provide consent for the acquisition of BRS (Note 3) and was further amended on April 1, 2026. In consideration of the consent, on April 10, 2026, the Company issued 50,000 common shares of the Company with a fair value of $382,000 and 180,085 bonus common share purchase warrants (the “Bonus Warrants”) with a fair value of $902,061. Each Bonus Warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of $8.11 per share until September 26, 2028. The aggregate fair value of $1,284,061 which was incurred as part of the modification was recognized as compensation expense.
| Page 18 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 13. | Loans Payable (continued) |
The carrying value of the loans will be accreted using the effective interest rate method over the term of the Credit Facility. The effective interest rate for the 2023 tranche and 2025 tranche is estimated at 22.48% and 13.89%, respectively.
| Loan Payable | ||||
| Balance, December 31, 2025 | $ | 12,151,389 | ||
| Interest expense | 1,091,765 | |||
| Foreign exchange impact | 484,849 | |||
| Balance, June 30, 2026 | $ | 13,728,003 | ||
During the six months ended June 30, 2026, the Company recognized interest expense of $1,091,765 (2025 – $735,657). As at June 30, 2026, a total of $13,728,003 (US$9,659,955) (December 31, 2025 - $12,151,389 (US$8,860,960)) of principal is outstanding, net of an unamortized discount of $2,018,809 (US$1,420,571) (December 31, 2025 – $2,205,685 (US$1,608,416)). As at June 30, 2026, $399,275 (US$280,957) (December 31, 2025– $394,870 (US$287,945)) is outstanding for interest which is included in accounts payable and accrued liabilities.
| 14. | Share Capital |
Authorized share capital
Unlimited number of common shares without par value.
Issued Share Capital
As at June 30, 2026, the Company had 18,234,976 (December 31, 2025 – 15,942,823) issued and fully paid common shares.
Private Placements
During the six months ended June 30, 2026
On January 12, 2026, the Company closed a non-brokered private placement of 1,345,292 common shares at $6.19 (US$4.46) per share for gross proceeds of $8,323,920 (US$6,000,000). The Company incurred $416,064 of share issuance costs in connection with the private placement, of which $163,322 was paid during the fiscal year ended December 31, 2025, and $252,742 was paid during the six months ended June 30, 2026.
On February 27, 2026, the Company issued 896,861 common shares to UEC Energy Corp., a subsidiary of Uranium Energy Corp., which is a controlling shareholder of the Company, for gross proceeds to the Company of $5,550,440 (US$4,000,000). In connection with the private placement, the Company incurred share issuance costs of $281,291 of which $108,904 was paid during the fiscal year ended December 31, 2025, and $172,387 was paid during the six months ended June 30, 2026.
| Page 19 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 14. | Share Capital (continued) |
On April 10, 2026, the Company issued 50,000 common shares at $7.64 per share with a fair value of $382,000 and 180,085 bonus common share purchase warrants with a fair value of $902,061 as consideration for the consent provided for the acquisition of BRS (Note 13).
During the six months ended June 30, 2025
On January 15, 2025, the Company issued 1,428,571 common shares at $10.50 per share for gross proceeds of $15,000,000.
On May 6, 2025, the Company issued 169,726 common shares with a fair value of $763,768 pursuant to the agreement the Company entered into with Gold Eagle Mining Inc. (Note 6).
During the six months ended June 30, 2025, the Company issued a total of 6,796 common shares upon the exercise of 6,796 warrants with exercise prices ranging between $4.125 per share and $6.375 per share for gross proceeds of $40,484. Upon exercise, the original fair value of the warrants totaling $4,813 was transferred from warrant reserve to share capital.
Warrants
Warrant activity is summarized as follows:
Number of warrants | Weighted average exercise price | |||||||
| Balance at December 31, 2025 | 4,210,709 | $ | 12.37 | |||||
| Warrants granted | 180,085 | 8.11 | ||||||
| Balance at June 30, 2026 | 4,390,794 | $ | 12.20 | |||||
Outstanding warrants are summarized as follows:
| Number of warrants outstanding | Exercise price | Expiry | ||||||
| 2,950,305 | $ | 13.50 | May 12, 2027 | |||||
| 799,000 | $ | 11.25 | September 26, 2028 | |||||
| 180,085 | $ | 8.11 | September 26, 2028 | |||||
| 461,404 | $ | 7.125 | October 6, 2028 | |||||
| 4,390,794 | ||||||||
At June 30, 2026, the weighted average life of warrants was 1.23 (December 31, 2025 – 1.77) years.
| Page 20 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 14. | Share Capital (continued) |
Omnibus Incentive Plan
On June 13, 2025, the Company approved an omnibus incentive plan which allows the Board of Directors of the Company from time to time, in its discretion, and in accordance with the TSX.V requirements, to grant non-transferable stock options, restricted share units and deferred share units (“Awards”) to directors, officers, employees and consultants of the Company (“Participants”). The number of common shares reserved for issuance for stock options and restricted share units will not exceed 10% and 5% of the Company’s issued and outstanding common shares, respectively. Stock options will be exercisable for a period of up to a maximum of ten years from the date of grant.
In connection with the foregoing, the number of common shares reserved for issuance to any one Participant in a 12-month period will not exceed five percent (5%) of the issued and outstanding common shares and the number of common shares reserved for issuance to all investor relation activities and consultants will not exceed two percent (2%) of the issued and outstanding common shares.
Options may be exercised no later than 90 days following cessation of the optionee’s position with the Company. Unvested RSUs shall be forfeited and cancelled following cessation of the optionee’s position with the Company. Each award other than stock options may not be vested before the date that is one year following the grant date of the award. Any stock options granted for investor relations services must vest in stages over a period of not less than 12 months.
Options
The following table summarizes the continuity of the Company’s stock options:
| Number of options | Weighted average exercise price | |||||||
| Balance at December 31, 2025 | 1,592,143 | $ | 7.47 | |||||
| Options cancelled | (4,000 | ) | 6.90 | |||||
| Balance at June 30, 2026 | 1,588,143 | $ | 7.47 | |||||
The weighted average remaining life of the outstanding options at June 30, 2026 was 2.53 (December 31, 2025 – 3.03) years.
Details of options outstanding, issued and exercisable, as at June 30, 2026 are as follows:
| Number of options outstanding and exercisable | Exercise price | Expiry | ||||||
| 190,000 | $ | 9.00 | August 27, 2026 | |||||
| 416,667 | $ | 7.50 | September 20, 2027 | |||||
| 424,904 | $ | 7.50 | October 6, 2028 | |||||
| 556,572 | $ | 6.90 | December 31, 2030 | |||||
| 1,588,143 | ||||||||
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| Page 21 |
| 14. | Share Capital (continued) |
Restricted Share Units
On December 31, 2025, the Company entered into Restricted Share Unit Agreements with directors, officers, employees and consultants of the Company to issue a total of 769,401 restricted share units (“RSUs”) which will vest after 12 months on December 31, 2026, except for 115,249 RSUs which were issued to settle amounts due to related parties of $811,353 (US$591,677) which vested on settlement during the six months ended June 30, 2026.
The fair value of the RSUs is measured based on the closing price of the Company’s common shares on the grant date and is recognized as share-based compensation over the vesting period.
| Number of RSU’s | ||||
| Balance at December 31, 2025 | 769,401 | |||
| RSUs cancelled | (4,500 | ) | ||
| Balance at June 30, 2026 | 764,901 | |||
During the six months ended June 30, 2026, the Company recognized share-based compensation expense of $2,265,670 (2025 - $nil) related to the RSUs, of which $1,383,339 (2025 - $nil) pertained to directors and officers of the Company (Note 9).
| 15. | Segmented Information |
The Company’s property and equipment, exploration and evaluation assets and its related reclamation bonds and insurance, by geographical areas as at June 30, 2026 and December 31, 2025, were all located in USA. The Company operates in two operating segments being the exploration and evaluation of mineral properties and the provision of consulting services for the mining, geology, civil engineering, and water resources sectors.
Based on the primary products of the Company, it has one reportable segment – the exploration and evaluation of mineral properties:
| Six months ended June 30, 2026 |
|
Consulting services |
|
|
Exploration and evaluation of mineral properties |
|
|
Total | |
|||
| Segment revenues | $ | 744,766 | $ | – | $ | 744,766 | ||||||
| Cost of sales | (182,292 | ) | – | (182,292 | ) | |||||||
| Gross profit | 562,474 | – | 562,474 | |||||||||
| Expenses | (659,171 | ) | (13,282,007 | ) | (13,941,178 | ) | ||||||
| Loss from operations | (96,697 | ) | (13,282,007 | ) | (13,378,704 | ) | ||||||
| Other items (net) | – | (2,646,983 | ) | (2,646,983 | ) | |||||||
| Net loss | $ | (96,697 | ) | $ | (15,928,990 | ) | $ | (16,025,687 | ) | |||
| Page 22 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 15. | Segmented Information (continued) |
| Six months ended June 30, 2025 |
|
Consulting services |
|
|
Exploration and evaluation of mineral properties |
|
|
Total | |
|||
| Segment revenues | $– | $– | $– | |||||||||
| Cost of sales | – | – | – | |||||||||
| Gross profit | – | – | – | |||||||||
| Expenses | – | (6,113,743 | ) | (6,113,743 | ) | |||||||
| Loss from operations | – | (6,113,743 | ) | (6,113,743 | ) | |||||||
| Other items (net) | – | (982,178 | ) | (982,178 | ) | |||||||
| Net loss | $ | – | $ | (7,095,921 | ) | $ | (7,095,921 | ) | ||||
The Company’s gross revenue for the six months ended June 30, 2026 and 2025 was $744,766 and $nil, respectively. During the six months ended June 30, 2026, 69% of revenues were derived from providing consulting services to one customer. At June 30, 2026, 69% of the accounts receivable is due from one customer.
| 16. | Capital Management |
The Company’s objectives when managing capital are to safeguard its ability to pursue the evaluation and exploration of its mineral exploration properties and to maintain a flexible capital structure, which optimizes the costs of capital at an acceptable risk. In the management of capital, the Company includes the components of share capital as well as cash. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust its capital structure, the Company may issue new shares, acquire or dispose of assets, or adjust the amount of cash and cash equivalents and short-term investments. In order to maximize ongoing development efforts, the Company does not pay out dividends. The Company is not subject to any externally imposed capital requirements. There were no changes during the year to management’s approach to capital management. The Company’s investment policy is to invest its excess cash in highly liquid investments that are readily convertible into cash with maturities of nine months or less from the original date of acquisition or when it is needed, selected with regards to the expected timing of expenditures from continuing operations.
| Page 23 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 17. | Financial Instruments |
| a) | Fair value |
The carrying values of cash, accounts payable and due to related parties approximate their fair values due to the relatively short period to maturity of those financial instruments. The carrying value of the long-term debt approximates its fair value due to the floating rate interest charged under the credit facility. Financial instruments recorded at fair value on the statements of financial position are classified using a fair value hierarchy.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are as follows:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
Level 3: Inputs that are not based on observable market data.
As at June 30, 2026, the financial instruments recorded at fair value on the statement of financial position are cash and marketable securities which are measured using Level 1, and the financial instruments recorded at amortized cost are reclamation bonds, accounts payable, due to related parties and loans payable.
The following are the contractual maturities of financial liabilities as at June 30, 2026:
| < 1 Year | 1-2 Years | 3-5 Years | ||||||||||
| Accounts payable | 2,247,533 | – | – | |||||||||
| Due to related parties | 248,525 | – | – | |||||||||
| Deferred consideration | 2,131,688 | 2,842,250 | – | |||||||||
| Loan payable | – | – | 20,310,049 | |||||||||
| Page 24 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 17. | Financial Risk Management (continued) |
| b) | Classification of financial instruments |
Financial assets included in the statement of financial position are as follows:
June 30, 2026 | December 31, 2025 | |||||||
| Fair value through profit and loss: | ||||||||
| Cash | $ | 1,800,044 | $ | 3,349,977 | ||||
| Marketable securities | 12,790 | 19,884 | ||||||
| Amortized cost: | ||||||||
| Reclamation bonds | 17,637,535 | 16,725,199 | ||||||
Financial liabilities included in the statement of financial position are as follows:
June 30, 2026 | December 31, 2025 | |||||||
| Non-derivative financial liabilities: | ||||||||
| Accounts payable | $ | 2,247,533 | $ | 1,242,676 | ||||
| Due to related parties | 248,525 | 278,502 | ||||||
| Deferred consideration | 4,324,860 | – | ||||||
| Loan payable | 13,728,003 | 12,151,389 | ||||||
Financial Risk Management
Credit Risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company’s primary exposure to credit risk is on its cash held in bank accounts. The majority of cash is deposited in bank accounts held with major banks in Canada. As the majority of the Company’s cash is held by one bank there is a concentration of credit risk. This risk is managed by using a major bank that is high credit quality financial institutions as determined by rating agencies. The Company has secondary exposure to credit risk on its receivables. The receivables consist of refundable goods and services tax from the government. Credit risk is assessed as low.
Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis. The Company ensures that there are sufficient funds to meet its short-term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash. Historically, the Company’s sole source of funding has been the issuance of equity securities for cash, primarily through private placements. The Company’s access to financing is always uncertain. There can be no assurance of continued access to significant equity funding. Liquidity risk is assessed as moderate.
The
Company’s current liabilities are due on demand or have a term of less than a year. The Company’s long-term liabilities consist
of a credit facility which is due on September 26, 2028, and deferred consideration on acquisition of US$1,500,000 which is due on May
8, 2027 and US$2,000,000 which his due on May 8, 2028.
| Page 25 |
Anfield Energy Inc.
Notes to the Condensed Interim Consolidated Financial Statements
For the six months ended June 30, 2026 and 2025
(Expressed in Canadian Dollars)
(Unaudited)
| 17. | Financial Risk Management (continued) |
Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. As at June 30, 2026, the Company’s loan payable of $13,728,003 (US$9,659,955) is subject to interest rate risk. The loan payable incurs interest based on the SOFR plus 5.0% per annum, payable semi-annually in U.S. dollars. The Company, with written notice, may elect to capitalize the interest payable on the Credit Facility semi-annually, in arrears, at a rate of SOFR plus 7.0%. If interest rates on the Company’s credit facility increased (decreased) by 100 basis points with all other variables held constant, finance costs on the credit facility would increase (decreased) by $124,781 (2025 – $134,743).
Foreign Currency Risk
Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currency. The foreign currency risk for the Company is low as the foreign currencies held are in the functional currency of the entities.
The following tables detail the Company’s exposure to foreign currency risk as at June 30, 2026, including a sensitivity analysis to changes in foreign exchange rates:
| June 30, 2026 | ||||||||||||
| USD | Change in currency | Effect on income (loss) | ||||||||||
| Net monetary assets | $ | 3,060,267 | 10 | % | $ | 434,902 | ||||||
| Net monetary liabilities | $ | (14,074,667 | ) | 10 | % | $ | (2,000,186 | ) | ||||
Commodity Risk
Commodity risk is the risk that the value of future cash flows and profits will fluctuate based on the prices of commodities. The Company is exposed to changes in the price of commodities. Changes in the price of commodities will impact the Company’s ability to obtain financing to explore its exploration and evaluation assets.
As at June 30, 2026, the Company has no contracts or agreements in place to mitigate these price risks.
| 18. | Contingent Liability |
On November 13, 2025, the Company, its subsidiary Highbury Resources Inc. and a co-defendant were served with a Demand for Arbitration through the American Arbitration Association by a plaintiff alleging breach of contract relating to an asset purchase agreement dated December 28, 2018 and mineral supply agreement dated February 28, 2019. One of the underlying assets acquired under these agreements was subsequently assigned to the co-defendant as part of a property swap agreement which closed June 6, 2022. The plaintiff is seeking 125,000 pounds of yellowcake uranium or an equivalent dollar amount of approximately US$10,000,000. The Company intends to vigorously defend the claim, should the Arbitration advance beyond this initial stage, as it considers the obligation for remittance of the 125,000 of yellowcake uranium to be the responsibility of the co-defendant under the terms of the property swap agreement. No amount has been provided for in the Company’s June 30, 2026 condensed interim consolidated financial statements in relation to the Demand for Arbitration as the Company is not able to evaluate the likelihood of an unfavourable outcome or the range of potential loss.
| 19. | Subsequent Events |
| a) | On July 1, 2026, the Company’s wholly-owned subsidiary, Highbury Resources Inc., has entered into a Mining Lease Agreement with Gold Eagle Mining Inc for two additional patented mining claims which will be added to the Company’s existing property holdings for the JD-5 and Slick Rock projects. | |
| b) | On July 31, 2026, the Company closed a public offering for 1,715,000 common shares at a price of US$4.00 per share for aggregate gross proceeds of US$6,860,000, which includes the full exercise of the underwriters’ option to purchase 223,695 common shares. In connection with the offering, the underwriters also received underwriter discounts and commissions totaling approximately $261,600. |
| Page 26 |