8. MORTGAGE PAYABLE

In August 2025, the Company’s indirectly wholly owned Botswanan subsidiary, Premium Nickel Resources Proprietary Limited (“PNRPL”), entered into a mortgage in respect of the Company’s previously acquired Syringa Lodge located near the Selebi Mines. The Company acquired the Syringa Lodge to house non-local personnel and consultants when visiting the Selebi Mines and for additional office space.

The remaining principal amount of the mortgage is $1,220,801 (BWP 11,772,432), is denominated in Botswanan pula, bears interest at Absa Prime Lending Rate (6.76% at June 30, 2026) plus 1.5% per annum, is repayable in fifty (50) remaining equal monthly blended instalments of principal and interest with a maturity date of August 20, 2030, and is secured by the Syringa Lodge. There is no fee for prepayment, and the mortgage is subject to a cash flow to debt service covenant which takes into consideration parent company capital contributions and is to be assessed based on each calendar year. The Company was in compliance with this covenant as of December 31, 2025.