11) Subsequent events

On September 11, 2026, the Company completed the strategic equity investment (the “Strategic Investment”) with the U.S. Department of War (the “DOW”), which was initially agreed to in the LOI entered into October 6, 2025.  Under the terms of the investment agreement dated August 28, 2026 between the Company and the DOW (the “Investment Agreement”), the Company issued and sold 8,215,570 units at a price of $2.17 per unit, each unit comprising of one common share of the Company and ¾ of a 10-year warrant to acquire up to 6,161,678 common shares of the Company at a price of $0.01 per share on the September 11, 2026 closing date. The warrants are exercisable upon the earlier of: i) the completion of Phase 1 of the Ambler Access Project; ii) the use by Ambler Metals of the Ambler Access Project by at least 10 trucks transporting concentrate within any 10-day period; and iii) a change in control of the Company. Under the terms of the Investment Agreement, the DOW is entitled to appoint a representative to the Company’s board of directors (the “Board”). The DOW is also entitled to appoint an observer to the Board.

The DOW also purchased from South32 8,215,570 common shares of the Company previously held by South32, together with a 10-year call option to acquire an additional 6,161,678 common shares of the Company, under the terms of a transaction agreement dated August 28, 2026 between South32 and the DOW.

The Company received gross proceeds of approximately $17.8 million from the closing of this offering and incurred legal expenses of approximately $0.4 million in connection with this transaction. Under the agreement, the Company is required to use the proceeds to make an additional cash capital contribution directly into Ambler Metals. This contribution will be made concurrent with an equivalent contribution by South32; consequently, the Company’s 50% equity ownership interest in Ambler Metals will remain unchanged.

Upon the closing of the agreement, the Company recognized a gain of $3.9 million on the settlement of the derivative liability that represented the Company’s obligation to issue shares and warrants to the DOW. The associated derivative liability was extinguished upon closing, and the applicable amounts were reclassified to share capital and contributed surplus.

Management has evaluated subsequent events through October 2, 2026, the date these financial statements were available to be issued.