Financial statements
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Northisle Copper and Gold Inc. Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Canadian dollars except where noted)
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Northisle Copper and Gold Inc. Condensed Interim Consolidated Financial Statements (Unaudited, Expressed in Canadian dollars) The accompanying notes are an integral part of these condensed interim consolidated financial statements - 2 - CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Approved by the Audit Committee Hume Kyle (signed) Director Sam Lee (signed) CEO and Director September 30, 2026 December 31, 2025 ASSETS Note $ $ Cash and cash equivalents 3 115,457,729 32,504,353 Mineral property exploration tax credit 204,863 204,863 Other assets 4 2,744,231 993,355 CURRENT ASSETS 118,406,823 33,702,571 Deposits 5 447,376 232,175 Equipment 6 333,591 297,970 Right of use asset 7 580,136 420,662 Mineral property interests 8 10,016,000 10,016,000 ASSETS 129,783,926 44,669,378 LIABILITIES Accounts payable and accrued liabilities 3,421,402 2,390,538 Flow-through premium liability 9 - 2,476,497 Current portion of lease liability 10 323,327 251,422 CURRENT LIABILITIES 3,744,729 5,118,457 Non-current portion of lease liability 10 298,981 183,066 LIABILITIES 4,043,710 5,301,523 SHAREHOLDERS’ EQUITY Share capital 11 200,018,827 89,610,840 Contributed surplus 12 5,498,529 4,809,229 Deficit (79,777,140) (55,052,214) SHAREHOLDERS’ EQUITY 125,740,216 39,367,855 LIABILITIES AND SHAREHOLDERS’ EQUITY 129,783,926 44,669,378 Nature of operations 1
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Northisle Copper and Gold Inc. Condensed Interim Consolidated Financial Statements (Unaudited, Expressed in Canadian dollars) The accompanying notes are an integral part of these condensed interim consolidated financial statements - 3 - CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Note $ $ $ $ Mineral property expenditures 8b 8,891,286 3,108,529 23,028,153 6,229,597 Filing and regulatory fees 41,530 19,343 253,050 70,195 Office and administration 215,299 99,432 505,566 246,877 Professional fees 263,212 48,291 1,092,083 159,455 Rent and utilities 22,154 14,314 80,484 42,942 Share-based compensation 12 704,488 373,795 1,398,275 1,025,481 Shareholder communication and travel 281,690 101,000 709,874 451,118 Wages and benefits 13 655,532 186,835 2,092,463 734,867 OPERATING EXPENSES 11,075,191 3,951,539 29,159,948 8,960,532 Foreign exchange loss/(gain) 2,448 (84) 10,668 395 Interest income (838,764) (159,508) (1,969,193) (254,889) Flow-through premium recovery 9 (657,735) (948,013) (2,476,497) (1,902,397) LOSS AND COMPREHENSIVE LOSS 9,581,140 2,843,934 24,724,926 6,803,641 Basic and diluted loss per share 0.03 0.01 0.08 0.03 Weighted average number of common shares outstanding 333,449,354 278,194,946 323,617,105 264,531,634
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Northisle Copper and Gold Inc. Condensed Interim Consolidated Financial Statements (Unaudited, Expressed in Canadian dollars) The accompanying notes are an integral part of these condensed interim consolidated financial statements - 4 - CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS For the nine months ended September 30, 2026 2025 Note Cash flows provided by (used in) $ $ OPERATING ACTIVITIES Loss and comprehensive loss (24,724,926) (6,803,641) Items not affecting cash and other adjustments Interest on lease obligation 34,782 10,495 Amortization 216,302 38,696 Interest income (1,969,193) (254,889) Flow-through premium recovery 9 (2,476,497) (1,902,397) Share-based compensation 12 1,398,275 1,025,481 (2,796,331) (1,082,614) Non-cash working capital items Change in other assets (186,303) (426,582) Change in accounts payable and accrued liabilities 1,030,864 662,907 844,561 236,325 CASH USED IN OPERATING ACTIVITIES (26,676,696) (7,649,930) INVESTING ACTIVITIES Purchase of equipment 6 (62,168) (239,288) Deposits paid 5 (215,201) - Interest received 404,620 166,989 CASH PROVIDED FROM (USED IN) INVESTING ACTIVITIES 127,251 (72,299) FINANCING ACTIVITIES Gross proceeds from private placement and public offering 11 115,003,300 39,685,842 Issuance costs 11 (5,695,452) (2,255,200) Proceeds from exercise of stock options and restricted share units 12 391,164 221,791 Principal repayments related to lease payments 10 (196,191) (44,567) CASH PROVIDED FROM FINANCING ACTIVITIES 109,502,821 37,607,866 CHANGE IN CASH AND CASH EQUIVALENTS 82,953,376 29,885,637 Cash and Cash Equivalents – Beginning 32,504,353 9,476,401 CASH AND CASH EQUIVALENTS - ENDING 115,457,729 39,362,038
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Northisle Copper and Gold Inc. Condensed Interim Consolidated Financial Statements (Unaudited, Expressed in Canadian dollars) The accompanying notes are an integral part of these condensed interim consolidated financial statements - 5 - CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY Note Number of Shares Share Capital Contributed Surplus Deficit Shareholders’ Equity $ $ $ $ DECEMBER 31, 2024 257,214,767 54,143,843 4,261,307 (41,568,555) 16,836,595 Private placement 11 32,923,086 36,356,845 - - 36,356,845 Private placement issuance costs 11 - (2,255,200) - - (2,255,200) Exercise of stock options and restricted share units 12 1,660,101 653,653 (431,862) - 221,791 Share-based payments 12 - - 1,025,481 - 1,025,481 Loss and comprehensive loss - - - (6,803,641) (6,803,641) SEPTEMBER 30, 2025 291,797,954 88,899,141 4,854,926 (48,372,196) 45,381,871 DECEMBER 31, 2025 293,729,987 89,610,840 4,809,229 (55,052,214) 39,367,855 Private placement and public offering 11 37,706,000 115,003,300 - - 115,003,300 Share issuance costs 11 - (5,695,452) - - (5,695,452) Exercise of stock options , restricted share units and deferred share units 12 2,138,664 1,100,139 (708,975) - 391,164 Share-based payments 12 - - 1,398,275 - 1,398,275 Loss and comprehensive loss - - - (24,724,926) (24,724,926) SEPTEMBER 30, 2026 333,574,651 200,018,827 5,498,529 (79,777,140) 125,740,216
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 6 - 1. NATURE OF OPERATIONS Northisle Copper and Gold Inc. together with its subsidiary, North Island Mining Corp. (collectively, “Northisle” or the “Company”) is a Canadian exploration stage company which is focused on the exploration and development of its North Island Project on Vancouver Island. The Company is incorporated in British Columbia, Canada. Its head office is located at 520 – 1050 West Pender Street, Vancouver, British Columbia. The nature of the Company’s operations requires significant expenditures for the acquisition, exploration, and evaluation of mineral properties. To date, the Company has not generated any revenue from mining operations and is considered to be in the exploration stage. The Company’s operations have been primarily funded from equity financings. The Company will continue to require additional funding to maintain its ongoing exploration and evaluation programs, property maintenance payments, and operations. 2. BASIS OF PRESENTATION a) Compliance with International Financial Reporting Standards These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), as applicable to the prepar ation of interim financial statements including International Accounting Standard (“IAS”) 34, Interim Financial Reporting. Accordingly, they do not include all the information and notes to the consolidated financial statements required by IFRS Accounting Standards for annual financial statements and should be read in conjunction with the Company’s most recent audited consolidated financial statements for the year ended December 31, 2025. These condensed interim financial statements were approved for issue by the Company’s Audit Committee on November 4, 2026. b) IFRS Pronouncements Adopted Effective January 1, 2026, the Company adopted amendments to IFRS 9 , Financial Instruments and IFRS 7, Financial Instruments: Disclosures related to the classification and measurement of financial instruments. The adoption of these amendments did not have a material impact on the Company’s condensed interim consolidated financial statements.
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 7 - Not yet adopted IFRS 18 – Presentation and Disclosure in Financial Statements In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements, which replaces IAS 1, Presentation of Financial Statements. It is effective for annual reporting periods beginning on or after January 1, 2027, including interim p eriods within that year, and requires retrospective application. The Company will adopt IFRS 18 on January 1, 2027 and re -present its comparative information accordingly. IFRS 18 affects presentation and disclosure only and will not change the recognition or measurement of any items, the Company’s loss and comprehensive loss, or its total assets, liabilities and equity. Management is currently completing its assessment of the standard’s effect on the Company. Income and expenses will be presented in operating, investing and financing categories, with new subtotals for operating loss and loss before financing and income taxes. The Company expects to present income recognized on the renunciation of flow -through share premium in the operating category, interest income in the investing category and interest expense on lease and financing obligations in the financing category, currently included in office and administration. In the statement of cash flows, operating activities will be reconciled from operating loss. The Company continues to assess the full impact of the new standard on its presentation and disclosure requirements. c) Critical accounting judgments, estimates and assumptions The preparation of these consolidated financial statements required management to make estimates, judgments and assumptions that affect the reported amounts and other disclosures in these consolidated financial statements. Estimates and the underlying assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets an d liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. Estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods. Critical estimates are estimates and assumptions made by management that may result in material adjustments to the carrying amount of assets and liabilities within the next financial year. Critical estimates used in the preparation of these consolidated fi nancial statements include, among others, the impairment of carrying values of equipment and mineral property interests, and the determination of realizable amounts of deferred tax assets and liabilities. Critical accounting judgments are judgments about the application of accounting policies that have been identified as being complex or involving subjective judgments or assessments. Critical accounting judgments include the expected economic lives of equipment and the identification of potential indicators of impairment for exploration and evaluation assets. At each reporting period, management applies judgment in assessing whether there are any indicators of impairment relating to mineral property interests. If any such indicator exists, then an impairment
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 8 - test is performed by management. Indicators of impairment may include (i ) the period during which the entity has the right to explore in the specific area has expired during the year or will expire in the near future; (ii) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; (iii) sufficient data exists to support that extracting the resources will not be technically feasible or commercially viable; and (iv) facts and circumstances suggest that the carrying amount exceeds the recoverable amo unt. As at September 30, 202 6, management identified no impairment indicators and consequently, impairment testing was not required. d) Consolidation These consolidated financial statements include the accounts of the Company and its 100% controlled subsidiary, North Island Mining Corp. (collectively, the “Company”). Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All significant inter-company transactions and balances have been eliminated upon consolidation. 3. CASH AND CASH EQUIVALENTS September 30, 2026 December 31, 2025 Cash held in bank accounts 3,431,928 3,744,853 Cash equivalents 112,025,801 28,759,500 115,457,729 32,504,353 Cash equivalents were held in cashable guaranteed investment certificates with the interest rate of 2.55%, 2.54%, and 2.85%. 4. OTHER ASSETS September 30, 2026 December 31, 2025 Prepaid expenses 678,054 538,630 GST receivable 349,360 302,481 Interest receivable 1,716,817 152,244 2,744,231 993,355
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 9 - 5. DEPOSITS September 30, 2026 December 31, 2025 Reclamation deposits 417,175 232,175 Security deposit on lease 30,201 - 447,376 232,175 The Company entered into a new lease agreement for its Vancouver head office and paid a security deposit of $30,201 (Note 7). 6. EQUIPMENT Cost Accumulated Depreciation Carrying Amount DECEMBER 31, 2025 489,811 (191,842) 297,970 Additions 62,168 (26,547) 35,621 SEPTEMBER 30, 2026 551,979 (218,389) 333,591 7. RIGHT-OF-USE ASSET The Company leases vehicles under a lease agreement for three pickup trucks with total monthly payments of $4,952 for the 48-month term. which expires on May 15, 2028. The leased vehicles have been recorded as a Right-of-Use Asset and are amortized over the life of the lease (See Note 10). The Company leases a site office located at Port Hardy. The lease has a non-cancellable term of two years commencing on October 1, 2025, with monthly rental payments of $16,000 for the 24-month term. The Company entered into a lease agreement for its head office located at 520 – 1050 West Pender Street, Vancouver, British Columbia, comprising approximately 3,351 rentable square feet. The lease commenced on June 22, 2026 and expires on August 31, 2031. The lease includes fixed payments that escalate annually and provides for rent -free periods from June 22, 2026 to August 31, 2026, and during October 2026, October 2027 and October 2028. Operating costs, property taxes and other variable occupancy costs are excluded from the measurement of the lease liability as they do not constitute lease payments under IFRS 16 and are recognized in profit or loss as incurred. Based on the lease agreemen t, annual base rent ranges from $25.00 to $29.00 per rentable square foot over the lease term.
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 10 - Right-of-use Asset Cost Accumulated Depreciation Carrying Amount DECEMBER 31, 2024 195,742 (32,624) 163,118 Additions 350,262 (92,718) 257,543 DECEMBER 31, 2025 546,004 (125,342) 420,662 Additions 349,229 (189,755) 159,474 SEPTEMBER 30, 2026 895,233 (315,097) 580,136 8. MINERAL PROPERTY INTERESTS a) Mineral property costs North Island Property $ December 31, 2024 and 2025 10,016,000 Changes during the period - SEPTEMBER 30, 2026 10,016,000 The North Island Copper Gold Project (the “Project”) consists of a contiguous block of mineral claims located on northern Vancouver Island in British Columbia, Canada. The claims include the Hush amu, Red Dog, Northwest Expo and West Goodspeed copper gold porph yry deposits, as well as numerous additional identified porphyry exploration targets and occurrences. Certain claims (historically known as the Expo claims) are subject to a 10% net profits interest royalty currently held by Royal Gold , Inc. Should a production decision be made on the Expo claims, the Company is required to make a cash payment of $1,000,000 to Sirit Inc. , or its successors, within 60 days of the production decision. Certain other claims underlying the Project are known as the Apple Bay claims . Should a production decision be made regarding the Apple Bay claims, the Company is required to pay $800,000 in cash or in shares to Electra Gold Ltd. , or its successors (“Electra”). The payment method is at the election of the Company. Electra maintains a limited right to explore the Apple Bay claims for non-metallic minerals subject to certain conditions including approval by Northisle. Claims underlying the Red Dog and a portion of the West Goodspeed deposit are subject to a combined 3% net smelter return royalty, of which up to 2% can be repurchased at the option of the Company at any time for a cash payment of US$1,000,000 for each 1% repurchased.
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 11 - b) Mineral Property Expenditures Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 $ $ $ $ Amortization of equipment 63,708 14,228 191,124 38,696 Community engagement 22,255 131,624 1,239,367 225,794 Engineering 2,660,143 8,095 7,269,509 284,419 Exploration and camp support 4,937,941 2,663,887 11,974,722 5,176,868 Environmental and permitting 1,069,489 126,428 2,153,378 183,534 Salaries and wages 137,750 164,267 200,053 320,286 TOTAL 8,891,286 3,108,529 23,028,153 6,229,597 Certain comparative amounts for 2025 have been reclassified to conform to the current year's presentation. The reclassifications relate solely to the allocation between subcategories and had no effect on the total reported balance or the statements of loss and comprehensive loss. 9. FLOW-THROUGH PREMIUM LIABILITY The flow-through premium liability balance as at September 30, 2026, was $Nil (December 31, 202 5 – $2,476,497). On August 8, 2025, the Company completed a flow-through financing and recorded a flow through liability of $3,328,997 and committed to incur, on or before December 31, 2026, qualifying Canadian exploration expenses as defined under the Income Tax Act, Canada (“Qualifying CEE’’) in the amount of $15,001,497. None of the Qualifying CEE are deductible by the Company in computing taxable income. As at September 30, 2026, the Company had incurred all committed expenditures and no longer had a flow-through premium liability associated with this flow-through share financing. Accordingly, the Company recognized a flow-through premium recovery of $657,735 and $2,476,497 during the three and nine months ended September 30, 2026, respectively ($948,013 and $1,902,397 during the three and nine months ended September 30, 2025, respectively). 10. LEASE LIABILITY On May 15, 2024, the Company entered into vehicle lease agreements, as described in Note 7. The vehicle lease agreements include an aggregate purchase option of $125,000 at the end of the lease term. On October 1, 2025, t he Company entered into a lease agreement for a site office located at Port Hardy , as described in Note 7. There is no option to purchase the property included in the lease. On June 22, 2026, the Company entered into a lease agreement for its head office in Vancouver, as described in Note 7. There is no option to purchase the premises. At the date of recognition, each lease liability was measured at the present value of the lease payments that were not paid as at that date. The lease payments are discounted using an annual interest rate of 8.99%. For the leased vehicles, this is the contracted rate applicable to the lease agreement. For the office leases, this rate reflects the Company’s estimated marginal cost of financing fixed assets. The continuity of the lease liability is presented in the table below.
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 12 - SEPTEMBER 30, 2026 DECEMBER 31, 2025 Opening balance 434,488 170,603 Additions 349,229 350,262 Principal repayments related to leases (196,191) (107,422) Interest expense 34,782 21,045 622,308 434,488 Less: current portion of lease liability (323,327) (251,422) Non-current portion of lease liability 298,981 183,066 The remaining minimum future lease payments, excluding estimated operating costs, for the term of the lease are as follows: 11. SHARE CAPITAL a) Authorized share capital The Company is authorized to issue an unlimited number of common shares without par value. b) Financing On March 6, 2026, the Company completed a brokered public offering , issuing 35,016,700 common shares at a price of $3.05 per common share for gross proceeds of $106,800,935. The Company also completed a brokered private placement, issuing 1,050,000 common shares at a price of $3.05 per common share for gross proceeds of $3,202,500. Issuance costs related to the brokered offering s totaled $5,695,452. On March 6, 2026, the Company completed a non-brokered private placement, issuing 1,639,300 common shares at a price of $3.05 per common share for gross proceeds of $4,999,865. On August 8, 2025, the Company completed a non -brokered private placement, issuing 4,762,000 common shares at a price of $1.05 per common share for gross proceeds of $5,010,105. YEAR SEPTEMBER 30, 2026 2026 77,785 2027 284,918 2028 2029 2030 2031 104,374 95,458 98,809 67,040 Total minimum lease payments 728,384 Less imputed interest (106,076) Total lease obligation 622,308 Current portion of lease obligation (323,327) Non-current portion of lease liability 298,981
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 13 - On August 8, 2025, the Company completed a brokered private placement, issuing 18,573,086 common shares at a price of $1.05 per common share and 9,338,000 flow -through shares at $1.61 per flow - through share for gross proceeds of $34,503,237. Issuance costs related to the private placement totaled $2,253,337. A flow-through premium liability of $3,328,997 was recognized (Note 9). On April 15, 2025, the Company completed a non-brokered private placement, issuing 250,000 common shares at a price of $0.69 per common share for gross proceeds of $172,500. Issuance costs related to the private placement totaled $1,863. 12. EQUITY INCENTIVE PLANS a) Stock Options Outstanding The Company has a stock option plan (the “Option Plan”) that permits stock options to be granted for the purchase of up to 10% (less the number of outstanding RSUs and DSUs, defined below) of the issued and outstanding common shares of the Company to directors, officers , employees, and consultants. Stock options generally vest over a two year period from date of grant unless otherwise determined by the board of directors. As at September 30, 2026, the Company could issue an additional 22,605,595 stock options under the terms of the stock option plan. A summary of the Company’s stock option activity is presented below: Number of Stock options Weighted average exercise price per share $ DECEMBER 31, 2024 9,797,433 0.28 Granted 1,965,000 0.81 Exercised (2,525,533) 0.24 DECEMBER 31, 2025 9,236,900 0.40 Granted 1,187,400 2.46 Exercised (1,030,631) 0.38 Forfeited (133,334) 1.23 SEPTEMBER 30, 2026 9,260,335 0.75 In relation to the stock options, the Company recognized an expense of $435,884 and $935,466 during the three and nine months ended September 30, 2026, respectively ($266,516 and $713,539 during the three and nine months ended September 30, 2025, respectively) in the statements of loss and comprehensive loss. Additionally, the Company reversed $71,040 associated with previously expensed stock options that were forfeited during the nine months ended September 30, 2026.
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 14 - Stock options outstanding and exercisable are as follows: Expiry Date Exercise price per share Number of stock options outstanding Average remaining contractual life (years) Number of stock options exercisable December 16, 2026 $0.29 1,431,000 0.21 1,431,000 November 21, 2027 $0.175 2,307,100 1.14 2,307,100 May 26, 2028 $0.18 327,000 1.65 327,000 December 21, 2028 $0.40 1,921,500 2.23 1,921,500 April 1, 2029 $0.50 150,000 2.50 150,000 July 18, 2029 $0.475 239,334 2.80 239,334 April 4, 2030 $0.69 1,360,335 3.51 906,890 September 1, 2030 $1.26 357,333 3.92 238,222 April 7, 2031 $3.03 841,333 4.52 280,444 May 27, 2031 $2.90 42,600 4.66 14,200 June 29, 2031 $2.63 70,500 4.75 23,500 August 24, 2031 $4.28 212,300 4.90 15,000 SEPTEMBER 30, 2026 9,260,335 2.20 7,854,190 During the nine months ended September 30, 202 6, the Company granted 1,187,400 (year ended December 31, 2025 – 1,965,000) options to employees, directors and consultants . The fair value of each option granted is estimated on the date of grant using the Black -Scholes option pricing model . The weighted average assumption and resulting fair values for the grants are as follows: Inputs and assumptions Nine Months Ended September 30, 2026 Year Ended December 31, 2025 Exercise price per share $3.23 $0.98 Market price per share $3.28 $0.98 Expected life of options (years) 5.0 5.0 Expected stock price volatility 83% 93% Average risk-free interest rate 3.14% 2.52% Expected forfeiture rate - - Expected dividend yield - - FAIR VALUE PER OPTION GRANTED $2.21 $0.69
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 15 - b) Restricted Share Units The Company granted restricted share units (“RSUs”) in accordance with the share unit plan approved at the Company’s 2021 shareholders meeting. These RSUs vest in three equal tranches on the anniversary of the respective grant date and are promptly converted into common shares . These RSUs can be cash or equity-settled at the Company’s discretion. The Company’s RSUs are classified as equity instruments. This classification reflects the Company’s stated policy of settling RSUs in ordinary shares, and the absence of a present obligation to settle in cash. RSUs are measured at the market price of the Company’s shares on the date of grant. Under the share unit plan the Company has reserved an amount not exceeding 7,000,000 shares for the issuance of RSUs, deferred share unit (“DSUs”), and performance share units (“PSUs”) and, when combined with the Option Plan, no more than 10% of the Company’s outstanding shares on a rolling basis. As at September 30, 2026, the Company could issue an additional 2,057,200 RSUs or DSUs under the terms of the share unit plan. A summary of the Company’s RSU activity is presented below: Number of shares issued or issuable on vesting DECEMBER 31, 2024 1,247,769 RSUs Granted 623,000 RSUs Converted to common shares (708,801) DECEMBER 31, 2025 1,161,968 RSUs Granted 304,000 RSUs Converted to common shares (479,433) SEPTEMBER 30, 2026 986,535 In relation to RSUs, the Company recogni zed an expense of $182,855 and $442,799 during the three and nine months ended September 30, 2026, respectively ($97,384 and $251,559 during the three and nine months ended September 30, 2025, respectively) in the statements of loss and comprehensive loss.
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 16 - c) Deferred Share Units Only non-executive directors of the Company are eligible for DSUs. Each DSU vests over twelve months and is redeemed upon a director ceasing to be a director of the Company. These DSUs can be cash or equity-settled at the Company’s discretion. The Company’s DSUs are classified as equity instruments. This classification reflects the Company’s past practice and stated policy of settling DSUs in ordinary shares, and the absence of a present obligation to settle in cash. DSUs are measured at the market price of the Company’s shares on the date of grant. Under the share unit plan the Company has reserved an amount not exceeding 7,000,000 shares for the issuance of RSUs, DSUs, and PSUs. As at September 30, 2026, the Company could issue an additional 2,057,200 DSUs or RSUs under the terms of the share unit plan. A summary of the Company’s DSU activity is presented below: Number of shares issued or issuable on vesting DECEMBER 31, 2024 1,344,200 DSUs Granted 52,000 DSUs Converted to common shares (357,800) DECEMBER 31, 2025 1,038,400 DSUs Granted 121,200 DSUs Converted to common shares (628,600) DSUs forfeited (26,000) SEPTEMBER 30, 2026 505,000 In relation to DSUs, the Company recogni zed an expense of $85,750 and $123,811 during the three and nine months ended September 30, 2026, respectively ($9,896 and $60,384 during the three and nine months ended September 30, 2025, respectively ) in the statements of loss and comprehensive loss. Additionally, the Company reversed $32,760 associated with previously expensed DSUs that were forfeited during the nine months ended September 30, 2026.
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 17 - 13. RELATED PARTY TRANSACTIONS Key Management Compensation The Company’s related parties include its directors and officers, who are the key management of the Company. The remuneration of directors and officers during the periods presented was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 $ $ $ $ Salaries, bonuses and director fees 526,500 270,442 1,631,920 709,794 Share-based compensation 596,904 603,492 1,240,284 1,203,005 KEY MANAGEMENT COMPENSATION 1,123,404 873,934 2,872,204 1,912,799 The compensation of certain key management of the Company are allocated to mineral property expenditures. As at September 30, 2026, the Company had no outstanding receivables or payables (2025 – $42,125 receivable) with its directors or officers. 14. SEGMENTED INFORMATION The Company’s operations are in one segment: the acquisition, exploration and development of mineral resource properties. All interest income is earned in Canada and all assets are held in Canada. The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer, who is responsible for allocating resources and assessing the performance of the Company’s operations. The CODM reviews financial information on a consolidated basis for the purpose of making operating decisions and evaluating financial performance. Accordingly, the Company has determined that it has a single reportable segment. 15. CAPITAL MANAGEMENT The Company is a mineral exploration and development company focusing on advancing the North Island Project. Its principal source of funds has been the issuance of securities. The Company considers capital to be equity attributable to common shareholders, comprised of share capital, contributed surplus, and deficit. It is the Company’s objective to safeguard its ability to continue as a going concern so that it can continue to explore and develop its projects. The Company manages its capital structure based on the funds available for its operations and makes adjustments for changes in economic conditions, capital markets and the risk characteristics of the underlying assets. To maintain its objectives, the Company may seek to issue additional shares, raise debt financing, acquire or dispose of assets or change the timing of planned exploration and development activities. There is no assurance that these initiatives will be successful. The Company monitors its cash position on a regular basis to determine whether sufficient funds are available to meet its short-term and long-term corporate objectives.
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 18 - There has been no change in the Company’s capital management practices during the period. The Company does not pay dividends. Neither the Company nor its subsidiary is subject to externally imposed capital requirements. 16. FINANCIAL INSTRUMENT RISK The Board of Directors has overall responsibility for the oversight of the Company’s risk management. The Company has exposure to liquidity and credit risk from financial instruments. Financial instruments consist of cash and equivalents, including guaranteed investment certificates , certain other assets, reclamation bonds and accounts payable and accrued liabilities. a) Liquidity risk Liquidity risk is the risk that the Company will be unable to meet its financial obligations as they come due. The Company uses cash forecasts to ensure that there is sufficient cash on hand to meet short - term business requirements. The Company’s accounts payable and accrued liabilities are all due in the short term. Cash is invested in highly liquid investments which are available to discharge obligations when they come due. The Company does not maintain a line of credit. At September 30, 2026, the Company had cash and cash equivalents of $115,457,729 (December 31, 2025 - $32,504,353). The Company’s financial liabil ities consist of accounts payable and accrued liabilities and lease liabilities. All accounts payable and accrued liabilities are due within one year. Lease liabilities are due as per contractual obligations under the respective lease agreements. The following table summarizes the maturity profile of the Company’s financial liabilities: < 1 year 1-3 years > 3years Total $ $ $ $ Accounts payable and accrued liabilities 3,421,402 - - 3,421,402 Lease liabilities 332,359 303,723 92,302 728,384 Total 3,753,761 303,723 92,302 4,149,786 The Company assessed its liquidity risk as low as at September 30, 2026 as cash and cash equivalents are sufficient to meet obligations when they come due. b) Credit risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash, cash equivalents, and reclamation deposits. These financial instruments are at risk to the extent that the institutions issuing or holding them cannot redeem amounts when they are due or requested. To limit its credit risk, the Company has adopted an investment policy which, among other things, sets out how such assets are to be managed . The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses, represents the Company’s maximum exposure to credit risk.
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Northisle Copper and Gold Inc. Notes to the Condensed Interim Consolidated Financial Statements For the three and nine months ended September 30, 2026 (Unaudited, Expressed in Canadian dollars) - 19 - c) Market risk The Company has assessed its exposure to market risk, including interest rate risk. Cash equivalents consist of short -term guaranteed investment certificates bearing fixed interest rates . Accordingly, changes in market interest rates would not have a significant impact on the Company’s cash flows .