Financial statements
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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited – expressed in Canadian dollars) For the three months ended July 31, 2026 and 2025
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2 NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS In accordance with National Instrument 51-102 Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed consolidated interim financial statements, they must be accompanied by a notice indicating that these condensed consolidated interim financial statements have not been reviewed by the Company’s auditors. The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by and are the responsibility of the Company’s management.
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3 MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited – expressed in Canadian dollars) NATURE AND CONTINUANCE OF OPERATIONS (NOTE 1) SUBSEQUENT EVENTS (NOTE 11) The accompanying notes are an integral part of these condensed consolidated interim financial statements. SIGNED: “Lawrence Talbot” SIGNED: “Darrell A. Rader” July 31, 2026 April 30, 2026 ASSETS C urrent assets Cash $ 12,946,402 $ 19,585,363 Receivables (Note 4) 214,518 162,317 Marketable securities (Note 5) 228,297 266,919 Prepaid expenses 182,477 195,726 13,571,694 20,210,325 Exploration and evaluation assets (Note 6) 6,143,187 6,112,158 $ 19,714,881 $ 26, 322,483 LIABILITIES Current liabilities Accounts payable and accrued liabilities (Note 7) $ 1, 674,423 $ 1,185,333 1,674,423 1,185,333 Deferred income tax liability 86,000 86,000 86,000 86,000 1,760,423 1,271,333 SHAREHOLDERS' EQUITY Share capital (Note 8) 97,970,565 97,471,182 Reserves (Note 8) 12,400,958 12,271,101 Deficit (92,417,065) (84,691,133) 17,954,458 25,051,150 $ 19,714,881 $ 26,322,483
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Unaudited – expressed in Canadian dollars) 4 The accompanying notes are an integral part of these condensed consolidated interim financial statements. 2026 2025 EXPEN SES Consulting fees (Note 7) $ 83,898 $ 63,660 Directors' fees (Note 7) 16,250 15,000 Exploration costs (supplemental schedule) (Note 6, 7) 7,259,014 1,544,924 Filing and registration 16,333 17,045 Foreign exchange (83,617) (10,533) Investor relations and marketing 140,368 190,679 Office and administration 47,086 31,704 Professional fees (Note 7) 84,562 99,467 Share-based payments (Note 7, 8(c)) 156,257 - Travel and meals 20,087 3,338 (7,740,238) (1,955,284) Interest income 52,928 69,870 Fair value adjustment of marketable securities (Note 5) (38,622) 14,454 14,306 84,324 TOTAL LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD$ (7,725,932) $ (1,870,960) LOSS PER COMMON SHARE, BASIC AND DILUTED $ ( 0.01) $ (0.00) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED 516,497,964 396,547,565 Three months ended July 31,
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited – expressed in Canadian dollars) 5 The accompanying notes are an integral part of these condensed consolidated interim financial statements. Total Number S hare-based shareholders' of shares Share capital reserves Deficit equity April 30, 2025 396,712,674 $ 64,260,143 $ 10,044,419 $ (67,211,708) $ 7,092,854 Shares issued for cash 36,800,000 9,200,000 - - 9,200,000 Residual value on warrants issued - (1,104,000) 1,104,000 - - Share issuance costs - (1,024,747) 254,194 - (770,553) Shares issued for acquisition of Lone Mountain 3,846,893 942,489 - - 942,489 Total comprehensive loss for the period - - - (1,870,960) (1,870,960) July 31, 2025 437,359,567 $ 72,273,885 $ 11,402,613 $ (69,082,668) $ 14,593,830 Shares issued for cash 69,444,443 24,999,999 - - 24,999,999 Share issuance costs - (2,764,036) 1,015,271 - (1,748,765) Shares issued on exercise of options 50,000 12,723 (5,223) - 7,500 Shares issued on exercise of warrants 8,337,650 2,948,611 (504,728) - 2,443,883 Share-based payments - - 363,168 - 363,168 Total comprehensive loss for the period - - - (15,608,465) (15,608,465) April 30, 2026 515,191,660 $ 97,471,182 $ 12,271,101 $ (84,691,133) $ 25,051,150 Share issuance costs - (2,817) - - (2,817) Shares issued on exercise of warrants 1,470,000 502,200 (26,400) - 475,800 Share-based payments - - 156,257 - 156,257 Total comprehensive loss for the period - - - (7,725,932) (7,725,932) July 31, 2026 516,661,660 $ 97,970,565 $ 12,400,958 $ (92,417,065) $ 17,954,458
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited – expressed in Canadian dollars) 6 The accompanying notes are an integral part of these condensed consolidated interim financial statements. 2026 2025 OPERATING ACTIVITIES Loss for the period $ (7,725,932) $ (1,870,960) Items not affecting cash: Fair value adjustment of marketable securities 38,622 (14,454) Interest income (84,475) - Share-based payments 156,257 - Changes in non-cash working capital items: Receivables 32,274 (25,749) Prepaid expenses 13,249 (28,748) Accounts payable and accrued liabilities 488,642 908,416 Cash flows used in operating activities (7,081,364) (1,031,495) INVESTING ACTIVITIES Exploration and evaluation acquisition costs (31,029) (326,249) Cash flows used in investing activities (31,029) (326,249) FINANCING ACTIVITIES Shares issued for private placements - 9,200,000 Shares issued on exercise of warrants 475,800 - Share issuance costs (2,369) (689,210) Cash flows provided by financing activities 473,432 8,510,790 NET CHANGE IN CASH DURING THE PERIOD (6,638,961) 7,153,046 CASH, BEGINNING OF THE PERIOD 19,585,363 1,148,787 CASH, END OF THE PERIOD $ 12,946,402 $ 8,301,833 CASH PAID FOR INTEREST AND TAXES $ - $ - SUPPLEMENTAL SCHEDULE OF NON-CASH TRANSACTIONS Shares issued for exploration and evaluation assets $ - $ 942,489 Residual value of warrants issued $ - $ 1,104,000 Reclassification from reserves on exercise of warrants $ 26,400 $ - Broker warrants issued $ - $ 254,194 Exploration and evaluation assets in accounts payable $ - $ 12,377 Share issuance costs in accounts payable $ 449 $ 81,343 Three months ended July 31,
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) SUPPLEMENTAL SCHEDULE OF EXPLORATION COSTS (Unaudited – expressed in Canadian dollars) 7 During the three months ended July 31, 2026, the Company paid $813,863 (MXN$10,141,700) (2025 – $52,430 or MXN$727,122) in IVA on expenditures incurred in Mexico. The collectability of these amounts is uncertain, therefore the Company has written off these amounts in exploration costs through profit and loss during the three months ended July 31, 2026 and 2025, respectively. During the three months ended July 31, 2026 and 2025, the Company did not receive any IVA refunds on expenditures incurred in Mexico in prior periods. Mexico Mexico Mexico Mexico Mexico Mexico U SA USA Aurena Property Santa Marta Project Alamos (Quintera) Aurífero Project Other Projects General Exploration Arizona Lone Mountain, Nevada Total Three months ended July 31, 2026 Analysis $ - $ - $ 485,053 $ 20,547 $ - $ - $ 249 $ - $ 505,849 Claim maintenance - - - - - - - 172,448 172,448 Community relations - - 90, 213 - - - - - 90,213 Drilling - - 3,903,379 - - - - - 3,903,379 Field supplies and equipment - - 40,585 - - - - - 40,585 General 1,580 1,580 564,485 1,580 1,580 3,395 1,719 2,300 578,219 Geological consulting 891 891 727, 781 30,728 1,782 594 5,341 1,775 769,783 Permitting - - 232,442 1,503 - - - - 233,945 Property taxes 97,552 118,529 126,128 163,613 54,384 - - - 560,206 Rent 3,811 - 58,125 - 6,591 - - - 68,527 Surveying - - 76,509 - - - - - 76,509 Transportation - - 253,910 - - - 5,441 - 259,351 Total for the period $ 103,834 $ 121,000 $ 6,558,610 $ 217,971 $ 64,337 $ 3,989 $ 12,750 $ 176,523 $ 7,259,014 Three months ended July 31, 2025 Claim maintenance $ - $ - $ - $ - $ - $ - $ 119,175 $ 124,388 $ 243,563 Community relations - - 13, 225 - - - - - 13,225 Drilling - - 226,111 - - - - - 226,111 Field supplies and equipment - - 28,498 - - - - - 28,498 General 1,568 1,568 141,911 1,568 1,568 16,155 2,077 1,568 167,983 Geological consulting 1,247 1,128 300, 887 2,731 2,850 - 8,906 950 318,699 Property taxes 17,021 102,614 97,619 31,077 - - - - 248,331 Rent 3,496 - 8,560 - 4,493 - - - 16,549 Resource estimate - - 19, 867 - - - - - 19,867 Transportation - - 262,098 - - - - - 262,098 Total for the period $ 23,332 105,310 1,098,776 $ 35,376 $ 8,911 $ 16,155 $ 130,158 $ 126,906 $ 1,544,924
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 8 1. Nature and Continuance of Operations: Minaurum Silver Inc. (formerly Minaurum Gold Inc.) (“the Company”) was incorporated under the Business Corporations Act of British Columbia on November 13, 2007. The Company is an exploration stage company and engages principally in the acquisition and exploration of mineral properties. The Company’s head office address is Suite 1570 – 200 Burrard Street, Vancouver, BC, V6C 3L6, Canada. The registered and records office address is 10th Floor, 595 Howe Street, Vancouver, BC, V6C 2T5, Canada. The Company is listed on the TSX Venture Exchange and the OTCQX. On December 22, 2025, the Company changed its name from “Minaurum Gold Inc.” to “Minaurum Silver Inc.” The Company’s trading symbols on the TSX Venture Exchange and the OTCQX remain unchanged. The Company is in the process of exploring its exploration and evaluation assets and has not yet determined whether its exploration and evaluation assets contain economically recoverable mineral reserves. The underlying value and the recoverability of the amounts shown as exploration and evaluation assets are entirely dependent upon the existence of economically recoverable resource reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of the exploration and evaluation assets , and future profitable production or proceeds from the disposition of the exploration and evaluation assets. The Company has a history of losses with no operating revenue, an accumulated deficit of $ 92,417,065 since inception, and a working capital of $11,897,271 as at July 31, 2026. During the year ended April 30, 2026, the Company closed brokered private placement s with aggregate gross proceeds of $34, 199,999. Management recognizes that the Company , in the long term, will need to generate additional financial resources to meet its planned business objectives. However, there can be no assurances that the Company will continue to obtain additional financial resources and/or achieve profitability or positive cash flows. If the Company is unable to obtain adequate additional financing, the Company will be required to curtail operations and exploration activities. Furthermore, failure to continue as a going concern would require that the Company’s assets and liabilities be restated on a liquidation basis which would differ significantly from the going concern basis. These material uncertainties may cast significant doubt about the Company’s ability to continue as a going concern within one year from the date of filing of these condensed consolidated interim financial statements. These condensed consolidated interim financial statements do not reflect adjustments, which could be material to the carrying values of assets and liabilities, which may be required should the Company be unable to continue as a going concern. Recent global issues, including recent geopolitical conflict, have adversely affected workplaces, economies, supply chains and financial markets globally. It is not possible for the Company to predict the duration or magnitude of the adverse results of these issues and their effects on the Company’s business or results of operations at this time. 2. Material Accounting Policies: a) Basis of presentation: These condensed consolidated interim financial statements including comparatives, have been prepared in accordance with International Accounts Standards (“IAS”) 34, “Interim Financial Reporting” using accounting policies consistent with IFRS Accounting Standards (“IFRS”), as issued by the International Accounting Standards Board ("IASB") and Interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”). The condensed consolidated interim financial statements of the Company are presented in Canadian dollars, which is the functional currency of the parent company and its subsidiaries.
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 9 2. Material Accounting Policies (continued): a) Basis of presentation (continued): These condensed consolidated interim financial statements were authorized for issuance by the Board on September 21, 2026. b) Basis of consolidation: These condensed consolidated interim financial statements include the financial statements of the Company and its wholly-owned Mexican subsidiaries, Minera Minaurum Gold S.A. De C.V. and Minera Citation S.A. de C.V., which carry out exploration activities in Mexico, and its wholly -owned USA subsidiary, Minaurum Corp., a Delaware company, which carries out exploration activities in the USA. All material intercompany transactions and balances have been eliminated on consolidation. c) Recent accounting pronouncements Effective May 1, 2027, the Company is required to adopt IFRS 18, Presentation and Disclosure in Financial Statements, with early adoption permitted. IFRS 18 will replace IAS 1; many of the existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its operating profi t or loss, in particular additional def ined subtotals, disclosures about management -defined performance measures and new principles for aggregation and disaggregation of information. IFRS 18 is accompanied by limited amendments to the requirements in IAS 7, Statement of Cash Flows. The Company is assessing the potential impact of the application of these standards. d) Use of judgments and estimates: The preparation of the condensed consolidated interim financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. The condensed consolidated interim financial statements include estimates which, by their nature, are uncertain. The impact of such estimates is pervasive throughout the financial statements and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates Significant assumptions about the future and other sources of estimation uncertainty that management has made at the financial position reporting date, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following: Recoverability of receivables The Company estimates the recoverability of IVA paid on expenditures incurred in Mexico.
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 10 2. Material Accounting Policies (continued): m) Use of judgments and estimates (continued): Critical accounting estimates (continued) Share-based payments The fair value of stock options and warrants issued are subject to the limitations of the Black -Scholes option pricing model that incorporates market data and involves uncertainty in estimates used by management in the assumptions. Because the Black-Scholes option pricing model requires the input of highly subjective assumptions, including the volatility of share prices, changes in subjective input assumptions can materially affect the fair value estimate. Deferred income tax liability The Company estimates the expected manner and timing of the realization or settlement of the carrying value of its assets and liabilities and applies the tax rates that are enacted or substantively enacted on the estimated dates of realization or settlement. Critical accounting judgments Examples of significant judgments, apart from those involving estimation, include: Exploration and evaluation assets Management is required to make judgments on the status of each mineral property and the future plans with respect to finding commercial reserves. The nature of exploration and evaluation activity is such that only a few projects are ultimately successful, and some assets are likely to become impaired in future periods. Functional currency The Company applied judgment in determining its functional currency and the functional currency of its subsidiaries. Functional currency was determined based on an analysis of the consideration factors in IAS 21, The Effects of Changes in Foreign Exchange Rates. Going concern The Company applied judgment in assessing its ability to continue as a going concern, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of operations for the foreseeable future. 3. Capital Management: The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition and exploration of exploration and evaluation assets . The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company’s management to sustain future development of the business. The capital structure of the Company consists of shareholders’ equity. The Company is not exposed to any externally imposed capital requirements.
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 11 3. Capital Management (continued): The exploration and evaluation assets in which the Company currently has an interest are in the exploration stage. As such the Company is dependent on external financing to fund its activities. In order to carry out the planned exploration and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There were no changes in the Company’s approach to capital management during the three months ended July 31, 2026 and 2025. 4. Receivables: July 31, 2026 April 30, 2026 GST input tax credits receivable $ 130,043 $ 89,659 Interest receivable 84,475 72,658 $ 214,518 $ 162,317 5. Marketable securities: Marketable securities Cost Balance, April 30, 2025 $ 2,312,575 Additions 141,279 Balance, April 30, 2026 and July 31, 2026 $ 2,453,854 Fair value Balance, April 30, 2025 $ 57,815 Additions 141,279 Fair value adjustment 67,825 Balance, April 30, 2026 $ 266,919 Fair value adjustment (38,622) Balance, July 31, 2026 $ 228,297 During the year ended April 30, 2026, the Company received 313,953 shares of Algo Grande Copper Corp. (“Algo Grande”) pursuant to a sales agreement on the Adelita property (Note 6(b)).
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 12 6. Exploration and Evaluation Assets: Balance consists of: July 31, 2026 April 30, 2026 Alamos (Quintera), Mexico $ 3,510,775 $ 3,510,775 Taviche, Mexico 64,573 64,573 Aurífero, Mexico 872,551 841,522 Black Mountain, Arizona, United States 402,129 402,129 Lone Mountain, Nevada, United States 1,293,159 1,293,159 Total $ 6,143,187 $ 6,112,158 Title to exploration and evaluation assets involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyancing history characteristic of many exploration and evaluation assets. The Company has investigated title to its exploration and evaluation assets and to the best of its knowledge title to the assets is in good standing. a) Aurena Property, Oaxaca State, Mexico: On April 30, 2009, the Company acquired an option, subsequently amended, to earn a 100% interest in the Aurena Property for 3,500,000 shares (issued) and $20,000 cash (paid). The property is subject to a net smelter return royalty (“NSR”) of 3%. In November 2010, a related party of the Mexican company that is the optionor of the underlying agreement became a director of the Company. The Company paid US$140,000, issued 1,100,000 common shares valued at $514,500 and incurred property expenditures of US$2,500,000 to earn its 100% interest in the Aurena property. Upon commencement of commercial production, the Company shall issue 2,000,000 shares to the vendor. The Company may elect to purchase up to 2% of the NSR for payment of the greater of US$4,000,000 or the equivalent amount of 0.9999 fine physical gold measured in troy ounces priced at the New York closing spot price on the closing date. The Company wrote off the related acquisition costs of $ 1,189,713 as at April 30 , 2026 as a result of impairment, due to its decision to prioritize exploration expenditures elsewhere within its property portfolio. b) Adelita Property, Sonora State, Mexico: On April 23, 2010, the Company acquired an option, subsequently amended, to acquire a 100% interest in a mineral property known as the Adelita property , comprised primarily of a land package under option with a Mexican company that is the optionor of the underlying agreement, along with a minor claim under option with a separate landowner. In November 2010, a related party of the Mexican company became a director of the Company. In consideration, the Company paid $1 to acquire the option. The Company previously paid US$595,000 and issued 925,000 common shares valued at $470,000 pursuant to the option and owned 100% of the Adelita property. The property was subject to an NSR of 2%. On April 8, 2021, the Company issued 200,000 common shares valued at $80,000 to eliminate a commercial production payment of 500,000 common shares.
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 13 6. Exploration and Evaluation Assets (continued): b) Adelita Property, Sonora State, Mexico (continued): Sale to Algo Grande Copper Corp. On August 12, 2025, the Company entered into an agreement with Algo Grande (formerly Kenadyr Metals Corp.) to sell its 20% interest in the Adelita property for consideration of 313,953 common shares of Algo Grande at a value of $0.45 per share and a 1% NSR, subject to regulatory approval. The sale was completed on December 18, 2025. As the carrying value of the Adelita property was $nil, the Company recognized a gain on sale of property of $141,279 in profit or loss for the year ended April 30, 2026. c) Vuelcos del Destino Property, Guerrero State, Mexico: On April 3, 2010, the Company acquired an option, subsequently amended, to acquire a 100% interest in a mineral property known as the Vuelcos del Destino property, located in Mexico. In November 2010, the president of the Mexican company that is the optionor of the underlying agreement became a director of the Company. The property is subject to a NSR of 3% , of which the Company may purchase up to 2% for US$2,000,000 per percentage point. In consideration, the Company paid $1 to acquire the option. To maintain the option on the propert y, the Company paid an aggregate of US$355,000 in cash , issued an aggregate of 3,650,000 common shares at an aggregate value of $1,004,500, and must complete US$2,000,000 in exploration expenditures by April 23, 2022 ($1,570,291 incurred as at July 31, 2026). In fiscal 2020, the option agreement was amended to extend the date of required expenditures from April 23, 2020 to April 23, 2022, unless the necessary permits required for drilling on the property are not obtained by April 23, 2021, in which case the time to complete the remaining option payments and expenditures will be extended by the corresponding additional amount of time required to obtain the necessary permits. As at July 31, 2026, the permits have not been obtained. Upon commencement of commercial production, t he Company must also issue an additional 2,000,000 common shares to a maximum aggregate value of US$5,000,000. Civil claim During the year ended April 30, 2025, the Company filed a Notice of Civil Claim in the Supreme Court of British Columbia against the optionors of the Vuelcos del Destino property in Mexico seeking damages, costs, and other relief. The claim is based on the Company's belief that it was in compliance wit h the terms of the agreement. The Company determined that due to the uncertainty of the standing of the option agreement, the property was impaired, and elected to write off the related acquisition costs of $1,411,039 as at April 30, 2024. d) Santa Marta Project, Oaxaca State, Mexico: On October 7, 2010, the Company acquired an option, subsequently amended, from Minera Zalamera S.A. de C.V. (“Minera Zalamera”), to acquire a 100% interest in a mineral property known as the Santa Marta property, located in Oaxaca, Mexico. The property is subject to an NSR of 3%. In consideration, the Company may purchase up to 2% of the NSR for US$1,000,000 per 0.5%, payable at the Company’s election in either cash or the equivalent of 0.9999 fine physical gold measured in troy ounces, priced at the New York gold closing price on the date of delivery.
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 14 6. Exploration and Evaluation Assets (continued): d) Santa Marta Project, Oaxaca State, Mexico (continued): To maintain the option on the property, the Company must pay an aggregate of US$175,000 in cash (paid US$115,000) and issue an aggregate of 1,875,000 common shares (issued at an aggregate value of $370,500) on or before October 28, 2016, and complete US$2,500,000 in exploration expenditures by October 28, 2017 (incurred as at July 31, 2026). In fiscal 2014, the option agreement was amended to state that the remaining option payments and expenditures would be deferred if the necessary permits required for drilling on the property were not obtained by May 31, 2014, in which case the time to complete the remaining option payments and expenditures will be extended by the corresponding additional amount of time required to obtain the necessary permits. As at July 31, 2026, the permits have not been obtained. Upon commencement of commercial production, the Company will issue additional shares equal in value to $5,000,000 to a maximum of 1,000,000 common shares, whichever is less. The Company determined that due to a lack of exploration permits being granted in Oaxaca, Mexico, the property is impaired, and elected to write off the related acquisition costs of $346,294 as at April 30, 2026. e) Alamos (Quintera) Project, Sonora State, Mexico: On September 1, 2016, the Company entered into an option agreement to earn a 100% interest in the Alamos (Quintera) silver project in Sonora, Mexico. To maintain the option on the property, the Company paid an aggregate of $500,000 in cash , issued an aggregate of 6,443,628 common shares at a value of $2,240,000, and incurred the minimum property expenditures ($3,000,000) on or before September 1, 2022 as required under the option agreement. The Company fulfilled all remaining obligations pursuant to the option agreement during the year ended April 30, 2023 and as such, has now vested 100% ownership in the Alamos (Quintera) property. The property vendor retains a 2% NSR, 0.5% of which can be purchased for $1,000,000. The Company must also complete a $2,000,000 payment to the property vendor within 30 days of the commencement of commercial production. From fiscal 2019 to fiscal 2022, the Company also paid an aggregate of $697,276 to acquire additional property concessions in the Alamos district. In fiscal 2026, the Company paid $126,313 to acquire additional property concessions in the Alamos district. Community Agreements The Company has entered into access agreements with various community groups, with aggregate annual commitments ranging from approximately $141,000 to $437,000. f) Taviche Project, Oaxaca State, Mexico: On January 25, 2019, the Company entered into a purchase and sale agreement with Gold79 Mines Ltd. (formerly Aura Resources Inc ) and its wholly owned subsidiary, Aura Resources Mexico, S.A. de C.V. (collectively, “Gold79”) to purchase an 80% interest in Gold79’s Taviche project located in Oaxaca State in Mexico (the “Aura Purchase Agreement”) . In consideration, the Company issued 100,000 common shares (valued at $40,000) upon closing of the transaction. Gold79 also granted to the Company an exclusive option to acquire the remaining 20% of the Taviche project for a total purchase price of $1,000,000.
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 15 6. Exploration and Evaluation Assets (continued): f) Taviche Project, Oaxaca State, Mexico (continued): During the year ended April 30, 2023, the Company exercised its option to acquire the remaining 20% of the Taviche project from Gold79 for a total purchase price of $1,000,000 (paid). Concurrently, the Company entered into a settlement agreement with Gold79 pursuant to which Gold79 will pay $800,000 (received) to the Company for a full and final release regarding any claims associated with the Taviche project. The Taviche project is subject to an aggregate 2.5% NSR. g) Biricu Project, Guerrero State, Mexico: On January 13, 2021, the Company renegotiated the terms of the underlying royalty on the Biricu Project. The Biricu Project is subject to a 2% NSR. The Company has been granted an option to repurchase one-half of the NSR which would result in the NSR being reduced to 1% of net smelter returns (“NSR Repurchase Option”). The NSR Repurchase Option may be exercised by cash payment as follows: a) $500,000 if the NSR Repurchase Option is exercised on or before December 31, 2023; b) $750,000 if the NSR Repurchase Option is exercised after December 31, 2023 and on or before December 31, 2024; and c) $1,000,000 if the NSR Repurchase Option is exercised after December 31, 2024 and on or before December 31, 2025. During the year ended April 30, 2025, the Company determined that the Biricu property was impaired, and elected to write off the related acquisition costs of $1,127,494 as at April 30, 2025. h) Aurífero Project, Sonora State, Mexico: On January 17, 2020, the Company entered into an option agreement, subsequently amended, to acquire a 100% interest in the Aurífero gold project in Sonora, Mexico. To maintain the option on the property, the Company must complete cash payments over an eight-year period as follows: a) US$144,000 on signing (paid US$84,120, net of back taxes); b) US$35,000 on July 17, 2020 (paid); c) US$25,000 on January 17 and July 17 in each of calendar years 2021 to 2024 (paid); d) US$22,000 on January 17 and July 17 in each of calendar years 2025 to 2027 (paid US$88,000, including US$22,000 during the three months ended July 31, 2026); and e) $2,175,000 by January 17, 2028. During the three months ended July 31, 2026, the Company also paid or accrued $30,403 (2025 - $61,133) to acquire additional property concessions adjacent to the original Aurífero property. Certain claims in the Aurífero property are subject to a 1% NSR. i) Arizona, United States: As at July 31, 2026, the Company has paid a total of $402,129 (April 30, 2026 - $402,129) to stake certain claims in Arizona, USA.
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 16 6. Exploration and Evaluation Assets (continued): j) Lone Mountain Project, Nevada, United States: During the year ended April 30, 2025, the Company entered into an agreement with Nevada Zinc Corporation (“Nevada Zinc”) and Lone Mountain Zinc Ltd. (“Lone Mountain”) to acquire a 25% interest in certain claims in Nevada, USA (the “Nevada Claims”) and an option to acquire the remaining 75% interest in the Nevada Claims. As consideration for the 25% interest, the Company paid US$116,908. On shareholder and regulatory approval obtained by Nevada Zinc, the Company exercised its option to acquire the remaining 75% interest, comprising the issuance of 3,846,893 common shares with a fair value of $942,489 and a cash payment of pay $100,000. The Nevada Claims are subject to various NSR’s ranging from 1-3%. As at July 31, 2026, the Company has also capitalized an aggregate of $89,388 (April 30, 2026 - $89,388) in legal costs incurred in relation to the acquisition of the Lone Mountain Project. 7. Related Party Transactions: As at July 31, 2026, $97,495 (April 30, 2026 - $10,043) (included in accounts payable and accrued liabilities) is due to directors, officers, and companies with a d irector in common. Amounts due to related parties are non-interest bearing, with no fixed terms of repayments. The remuneration of key management personnel, which includes directors and officers of the Company, including amounts disclosed above, during the three months ended July 31, 2026 and 2025 were as follows: 2026 2025 Consulting fees $ 96,383 $ 53,055 Professional fees 28,500 19,500 Exploration costs (geological consulting) 50,125 35,625 Directors’ fees 16,250 15,000 Share-based payments 82,979 - Total $ 274,237 $ 123,180 8. Share Capital: a) Authorized share capital: Unlimited common shares without par value. b) Issued and outstanding common shares: Issued in the three months ended July 31, 2026 During the three months ended July 31, 2026, the Company issued an aggregate of 1,470,000 common shares on the exercise of warrants at a weighted average price of $0. 32 for gross proceeds of $475,800 (Note 8(d)). The Company incurred share issuance costs of $2,817 in relation to the exercise of warrants. Issued in the year ended April 30, 2026 On June 25, 2025, the Company issued 3,846,893 common shares with a fair value of $942,489 in connection with the acquisition of the Lone Mountain property (Note 6(j)).
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 17 8. Share Capital (continued): b) Issued and outstanding common shares (continued): On July 3, 2025, the Company closed a brokered private placement of 36,800,000 units at a price of $0.25 per unit for gross proceeds of $9,200,000. Each unit consisted of one common share and one half of one common share purchase warrant; each whole warrant is exercisable at a price of $0.37 for a period of two years. The Company recognized a residual value of $1,104,000 for the warrants underlying the units issued. In connection with the private placement, the Company paid total cash commissions of $529,500 and incurred other share issuance costs of $248,504. The Company also issued 2,118,000 broker warrants exercisable at a price of $0.25 for a period of two years, with a fair value of $254,194 (Note 8(d)). On December 11, 2025, the Company closed a brokered private placement of 69,444,443 units at a price of $0.36 per unit for gross proceeds of $24,999,999. Each unit consisted of one common share and one half of one common share purchase warrant; each whole warrant is exercisable at a price of $0.50 for a period of two years. In connection with the private placement, the Company paid total cash commissions of $1,434,605 and incurred other share issuance costs of $301,656. The Company also issued an aggregate of 3,985,009 broker warrants exercisable at a price of $0.36 for a period of two years, with a fair value of $1,015,271 (Note 8(d)). During the year ended April 30, 2026, the Company issued an aggregate of 8,337,650 common shares on the exercise of warrants at a weighted average price of $0.29 for gross proceeds of $2,443,883 (Note 8(d)), and issued 50,000 common shares on the exercise of stock options at an exercise price of $0.15 for gross proceeds of $7,500 (Note 8(d)). The Company incurred share issuance costs of $ 2,422 in relation to the exercise of warrants. c) Long-Term Incentive Plan: The Company has adopted a Long-Term Incentive Plan (the “Plan”) which authorizes the Board of Directors to issue a variety of equity -based awards that provide different types of incentives to be granted to the Company’s directors, officers, employees and consultants. The Plan provides that t he maximum number of common shares that may be reserved and available for issuance under the Plan and all of Company’s other equity incentive plans or compensation arrangements in existence from time to time on and after the effective date of the Plan, will be 10% of the total issued and outstanding common shares from time to time. The exercise price of each stock option shall not be less than the market price of the Company’s shares as calculated on the date of grant. An option’s maximum term is ten years and shall vest as determined by the Board of Directors. Options granted to investor relations consultants shall vest in stages over 12 months with no more than one- quarter of options vesting in any three-month period. If any award expires, is cancelled, otherwise terminated for any reason without having been ex ercised in full, or is settled in cash, the number of common shares in respect of which such award was not exercised will again be available for issuance under the Plan. The Plan allows for the grant of stock options, restricted share units (“RSU”), and deferred share units (“DSU”) As at July 31, 2026, the Company has not granted any RSU or DSU instruments.
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 18 8. Share Capital (continued): d) Stock options: Stock option transactions are as follows: Number of stock options Weighted average exercise price Balance, April 30, 2025 15,825,000 0.41 Granted 3,160,000 0.36 Expired (300,000) 0.52 Exercised (50,000) 0.15 Balance outstanding, April 30, 2026 and July 31, 2026 18,635,000 0.40 Balance exercisable, July 31, 2026 16,265,000 0.39 As at July 31, 2026, the Company has stock options outstanding and exercisable as follows: Number of stock options outstanding Number of stock options exercisable Exercise price Expiry Date 2,550,000 2,550,000 $ 0.45 April 15, 2029 200,000 200,000 0.45 June 18, 2029 3,200,000 3,200,000 0.52 March 23, 2031 125,000 125,000 0.45 October 15, 2026 7,700,000 7,700,000 0.40 April 13, 2032 1,700,000 1,700,000 0.15 November 9, 2028 3,160,000 790,000 0.36 December 5, 2030 18,635,000 16,265,000 $ 0.40 The Company did not grant any stock options during the three months ended July 31, 2026 and 2025. During the three months ended July 31, 2026, the Company recognized $ 156,257 (2025 - $nil) in share-based payments for the fair value of the vesting portion of the stock options that were granted in prior periods. e) Warrants: Warrant transactions are as follows: Number of warrants Weighted average exercise price Balance, April 30, 2025 16,393,500 $ 0.30 Issued 59,225,230 $ 0.44 Exercised (8,337,650) $ 0.29 Balance, April 30, 2026 67,281,080 $ 0.42 Issued 1,470,000 $ 0.32 Exercised (6,141,500) $ 0.44 Balance, July 31, 2026 59,669,580 $ 0.44
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 19 8. Share Capital (continued): e) Warrants (continued): As at July 31, 2026, the Company has warrants outstanding as follows: Number of warrants Exercise price Expiry Date 2,612,500 $ 0.18 November 3, 2026* 17,842,250 $ 0.37 July 3, 2027* 507,600 $ 0.25 July 3, 2027 34,722,221 $ 0.50 December 11, 2027* 3,985,009 $ 0.36 December 11, 2027* 59,669,580 $ 0.44 * Subsequent to July 31, 2026, an aggregate of 605,624 warrants with a weighted average exercise price of $0.22 were exercised for gross proceeds of $135,425. 9. Segmented Information: The Company operates in one segment being the acquisition and exploration of exploration and evaluation assets. The Company operates in Mexico and the United States. Geographic information is described in Note 6. 10. Financial Instruments and Risk Management: Financial instruments The Company measures financial instruments using a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The carrying values of cash, receivables, and accounts payable and accrued liabilities approximate their fair values because of the short-term nature of these instruments. Marketable securities are measured at level 1 inputs of the fair value hierarchy. Financial risk factors The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below: a) Credit risk: Credit risk is the risk of loss associated with a counter party’s inability to fulfill its payment obligations. The Company’s receivables consist primarily of amounts due from Canadian and Mexican government agencies, and cash is held with large and stable financial institutions.
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 20 10. Financial Instruments and Risk Management (continued): Financial risk factors (continued) b) Liquidity risk: The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet its liabilities when they come due. As of July 31, 2026, the Company had cash of $ 12,946,402 and current liabilities of $1,674,423. c) Market risk: Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates, and commodity and equity prices. (i) Interest rate risk: The Company has cash balances and no interest-bearing debt. The Company’s current policy is to invest excess cash in investment-grade short-term demand deposit certificates issued by its banking institutions. The Company periodically monitors the investments it makes and is satisfied with the credit ratings of its banks. (ii) Foreign currency risk: The Company is exposed to foreign currency risk on fluctuations related to cash, accounts receivable, and accounts payable and accrued liabilities that are denominated in United States Dollars and Mexican Pesos. The exposure of the Company’s cash and receivables to foreign exchange risk is as follows: July 31, 2026 April 30, 2026 Foreign Amount Foreign Amount currency in CAD currency in CAD amount dollars amount dollars United States dollars: Cash 4,221,100 $ 5,917,771 4,963,780 $ 6,771,092 Mexican pesos: Cash 820,673 $ 66,351 8,751,471 $ 681,236 Total financial assets $ 5,984,122 $ 7,452,328
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MINAURUM SILVER INC. (formerly Minaurum Gold Inc.) NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED JULY 31, 2026 AND 2025 (Unaudited – expressed in Canadian dollars) 21 10. Financial Instruments and Risk Management (continued): Financial risk factors (continued) c) Market risk (continued): (ii) Foreign currency risk (continued): The exposure of the Company’s accounts payable to foreign exchange risk is as follows: July 31, 2026 April 30, 2026 Foreign Amount Foreign Amount currency in CAD currency in CAD amount dollars amount dollars United States dollars: Accounts payable 631,720 $ 885,640 589,361 $ 803,947 Mexican pesos: Accounts payable and accrued liabilities 6,550,612 $ 529,615 3,488,105 $ 271,523 Total financial liabilities $ 1,415,255 $ 1,075,470 As at July 31, 2026, the Company had net monetary assets denominated in United States dollars totaling approximately US$3,589,380. The Company has determined that a 10% increase or decrease in the US dollar against the Canadian dollar on these instruments, as at July 31, 2026, would result in approximately $503,200 change to comprehensive loss for the period. (iii) Price risk: The Company is exposed to price risk with respect to commodity and equity prices. Equity price risk is defined as the potential adverse impact on the Company’s earnings due to movements in individual equity prices or general movements in the level of the s tock market. Commodity price risk is defined as the potential adverse impact on earnings and economic value due to commodity price movements and volatility. The Company closely monitors commodity prices of gold and other precious and base metals, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company. 11. Subsequent events: Warrant Activity Subsequent to July 31, 2026, the Company issued an aggregate of 605,624 common shares on the exercise of warrants for gross proceeds of $135,425. Equity Issuances Subsequent to July 31, 2026, the Company issued an aggregate of 385,000 stock options exercisable at a price of $0.40 for a period of five years, and an aggregate of 1,315,000 RSUs to directors, officers, employees, and consultants, vesting over a two-year period.