Note 9 – Allowance for Optioned Properties

Fish Lake Valley

On October 12, 2021 we signed an agreement with Morella Corporation, an Australian Lithium explorer and developer, and related entity whereby Morella Corporation can earn a 60% interest in the Fish Lake Valley property by paying the Company $675,000, issuing the equivalent of $500,000 worth of Morella stock, and expending $2,000,000 of exploration work in the next four years.

As of June 30, 2026, the Company has received $375,000 and received 10,250,404 common shares with a fair value of $1,711,221 in relation to the letter of intent. The Company recorded $2,086,221 as a liability against the property until either the purchaser returns the property to the Company or the purchaser has met all the obligations associated with the agreement, at which time the liability will be charged to the statement of operations.

By letter agreement dated September 5th, 2025 the Company amended the original October 12, 2021 agreement and assigned 100% interest in the southern and more eastern portions of the property to Morella Corporation, reserving a 3.5% net smelter royalty on the assigned property. Morella is obligated to pay the fourth anniversary payments on the original Fish Lake Earn-in Agreement over four tranches over 18 months from the original anniversary dates (being October 12, 2025).

The Letter of Intent and letter agreements were signed with a purchaser that has a common director as the Company.

North Big Smoky

On July 16, 2022 our Company entered into an earn in agreement with Morella Corporation, an Australian Lithium explorer and developer, and related party, whereby Morella Corporation can earn a 60% interest in the Big North Smoky property by issuing the equivalent of $500,000 worth of Morella Corporation stock, and expending $1,000,000 of exploration work in the next four years. To date Morella Corporation has paid $65,000 and issued 9,099,650 common shares with a fair value of $379,030.

As of June 30, 2026, Morella Corporation has paid $65,000 and our company has received 9,099,650 common shares with a fair value of $379,030. The Company recorded $444,031 as a liability against the property until either the purchaser returns the property to the Company or the purchaser has met all the obligations associated with the agreement, at which time the liability will be charged to the statement of operations.

By letter agreement dated September 5th, 2025 the Company amended the original July 16, 2022 agreement and assigned 100% interest in the property to Morella Corporation, reserving a 3.5% net smelter royalty on the assigned property. Morella is obligated to pay the third anniversary payments on the original North Big Smoky Earn-in Agreement over four tranches over 18 months from the original anniversary dates (being July 16, 2025).

The Letter of Intent and letter agreements were signed with a purchaser that has a common director as the Company.

Las Pilas Property

On December 31, 2025, the Company entered into an earn in agreement with Ridgestone Resources Inc., (“Ridgestone”) a Canadian corporation whose management is a related party to the Company, whereby Ridgestone can earn a 100% interest in the property by making payments totalling CAD$320,000, issuing 550,000 common shares and fund CAD$600,000 in exploration expenditures on the property.

To date, the Company has received the initial CAD$5,000 (USD$3,616).