Financial statements
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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) (unaudited)
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NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the condensed consolidated interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The Company’s independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of condensed consolidated interim financial statements by an entity’s auditor. The accompanying unaudited condensed consolidated condensed consolidated interim financial statements of American Pacific Mining Corp. for the six months ended June 30, 2026 have been prepared by the management of the Company and approved by the Company’s Audit Committee and the Company’s Board of Directors. 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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Table of Contents Consolidated Interim Statements of Financial Position (unaudited) ................................ ......................... 4 Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (unaudited) .....................5 Condensed Consolidated Interim Statements of Changes in Equity (unaudited) ................................ .......6 Condensed Consolidated Interim Statements of Cash Flows (unaudited) ................................ .................7 Notes to the Condensed Consolidated Interim Financial Statements (unaudited) ................................ .....8 1) Corporate information and continuance of operations ............................................................................. 8 2) Material accounting policy information and basis of preparation ............................................................. 8 3) Disposition of subsidiaries .......................................................................................................................... 9 4) Cash and cash equivalents ........................................................................................................................ 10 5) Marketable securities ............................................................................................................................... 10 6) Investments ............................................................................................................................................... 11 7) Property and equipment ........................................................................................................................... 12 8) Exploration and evaluation assets ............................................................................................................ 12 9) Lease obligations ....................................................................................................................................... 16 10) Share capital and reserves ........................................................................................................................ 17 11) Related party transactions and balances .................................................................................................. 20 12) Segmented information ............................................................................................................................ 21 13) Capital management ................................................................................................................................. 21 14) Financial instruments ................................................................................................................................ 22
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American Pacific Mining Corp. See accompanying notes to these condensed consolidated interim financial statements. Condensed Consolidated Interim Statements of Financial Position (unaudited) (Expressed in Canadian Dollars) As at June 30, December 31, 2026 2025 Note(s) $ $ ASSETS Current assets Cash and cash equivalents 4 5,240,163 908,702 Marketable securities 5 13,749,952 11,251,874 Amounts receivable 139,462 220,978 Prepaid expenses 535,162 195,833 Assets held for sale - 4,025,000 19,664,739 16,602,387 Non-current assets Marketable securities 5 900,000 3,750,625 Reclamation deposits 8 375,922 175,796 Investments 6 4,140,017 3,976,769 Property and equipment 7 67,956 63,644 Exploration and evaluation assets 8 9,307,931 9,078,085 14,791,826 17,044,919 TOTAL ASSETS 34,456,565 33,647,306 LIABILITIES Current liabilities Accounts payable and accrued liabilities 11 1,248,013 1,526,688 Current portion of lease obligations 9 25,621 23,737 1,273,634 1,550,425 Non-current liabilities Lease obligations 9 16,714 30,077 16,714 30,077 TOTAL LIABILITIES 1,290,348 1,580,502 SHAREHOLDERS' EQUITY Share capital 10 77,124,076 69,267,936 Warrants reserve 10 3,610,367 2,173,973 Stock options reserve 10 5,086,842 5,086,842 Accumulated deficit (53,101,025) (45,112,762) Accumulated other comprehensive income 445,957 650,815 TOTAL SHAREHOLDERS' EQUITY 33,166,217 32,066,804 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 34,456,565 33,647,306 Corporate information and continuance of operations 1 Commitments 8 Segmented information 12 Subsequent events 10 These condensed consolidated interim financial statements were approved for issue by the Board of Directors and signed on its behalf by: /s/ Warwick Smith Director /s/ Ali Hakimzadeh Director
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American Pacific Mining Corp. See accompanying notes to these condensed consolidated interim financial statements. Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (unaudited) (Expressed in Canadian Dollars) For the three months ended For the six months ended June 30, June 30, June 30, June 30, 2026 2025 2026 2025 Note(s) $ $ $ $ Expenses (income) Change in fair value of marketable securities 5 (1,574,812) - 1,752,547 - Consulting fees 11 224,767 117,330 842,040 241,486 Depreciation 7 6,602 16,043 13,379 30,083 Exploration and evaluation costs 8 1,174,617 2,944,502 1,590,638 4,556,797 Finance income (38,127) (137,667) (61,274) (246,400) Finance costs 9 1,316 56,881 2,804 126,493 Foreign exchange (loss) gain (68,949) (1,411,769) (49,711) 571,302 Gain on debt settlement 10 - - (15,307) - Loss on disposition of subsidiaries 3 - - 281,167 - General and administrative expenses 73,558 85,091 162,565 198,578 Directors' fees 34,062 33,816 66,940 68,367 Other income - (16,852) (20,000) (33,534) Professional fees 11 199,421 248,640 424,926 449,519 Project evaluation costs - 40,619 304 41,886 Shareholder information and investor relations 387,620 160,614 556,196 335,273 Transfer agent, regulatory and filing fees 47,410 37,604 150,508 72,297 Travel 57,600 38,870 135,684 195,612 Total expenses (525,085) (2,213,722) (5,833,406) (6,607,759) Loss (525,085) (2,213,722) (5,833,406) (6,607,759) Other comprehensive income (loss) Items that may be reclassified subsequently to profit or loss: Foreign currency translation differences for foreign operations 103,220 (1,142,636) 265,285 (1,171,100) Total other comprehensive (loss) income 103,220 (1,142,636) 265,285 (1,171,100) Loss and comprehensive loss (421,865) (3,356,358) (5,568,121) (7,778,859) Loss (earnings) per share for the period attributable to common shareholders ($ per common share) - Basic (0.00) (0.01) (0.02) (0.03) - Diluted (0.00) (0.01) (0.02) (0.03) Weighted average number of common shares outstanding - basic and diluted 264,687,955 219,088,051 256,089,815 219,088,051
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American Pacific Mining Corp. See accompanying notes to these condensed consolidated interim financial statements. Condensed Consolidated Interim Statements of Changes in Equity (unaudited) (Expressed in Canadian Dollars) Share capital Warrants reserve Stock options reserve Accumulated deficit Accumulated other comprehensive income TOTAL Note(s) # $ $ $ $ $ $ Balance as of December 31, 2025 219,088,051 69,267,936 2,173,973 5,086,842 (45,112,762) 650,815 32,066,804 Private placement – issuance of units and associated share issuance costs 10 44,318,182 7,638,247 1,436,394 - - - 9,074,641 Shares issued for debt settlement 10 1,281,722 217,893 - - - - 217,893 Reclassification of accumulated other comprehensive income of disposed subsidiaries - - - - 470,143 (470,143) - Dividends 5, 10 - - - - (2,625,000) - (2,625,000) Loss and comprehensive loss - - - - (5,833,406) 265,285 (5,568,121) Balance as of June 30, 2026 264,687,955 77,124,076 3,610,367 5,086,842 (53,101,025) 445,957 33,166,217 Balance as of December 31, 2024 219,088,051 69,267,936 2,002,353 5,062,513 (29,148,447) 1,516,787 48,701,142 Loss and comprehensive loss - - - - (6,607,759) (1,171,100) (7,778,859) Balance as of June 30, 2025 219,088,051 69,267,936 2,002,353 5,062,513 (35,756,206) 345,687 40,922,283
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American Pacific Mining Corp. See accompanying notes to these condensed consolidated interim financial statements. Condensed Consolidated Interim Statements of Cash Flows (unaudited) (Expressed in Canadian Dollars) For the six months ended June 30, June 30, 2026 2025 Note(s) $ $ Cash flow from (used in) OPERATING ACTIVITIES Income (loss) (5,833,406) (6,607,759) Accretion of lease obligation 9 2,804 126,493 Change in fair value of marketable securities 5 1,752,547 - Depreciation 7, 8 14,305 1,215,255 Finance income (14,942) 18,388 Gain on debt settlement 10 (15,307) - Loss on disposition of subsidiaries 3 281,167 - Unrealized foreign exchange (67,569) 504,962 Net changes in non-cash working capital items: Amounts receivable 80,495 (3,816) Prepaid expenses (325,482) 83,121 Accounts payable and accrued liabilities (53,361) (137,517) Cash flow used in operating activities (4,178,749) (4,800,873) INVESTING ACTIVITIES Acquisition costs of exploration and evaluation assets 8 (68,608) (101,703) Cash paid for reclamation deposits 9 (216,195) - Disposal of subsidiary, net of cash disposed of 3 (252,206) - Purchase of property and equipment 7 (17,858) - Cash flow provided by (used in) investing activities (554,867) (101,703) FINANCING ACTIVITIES Lease payments 9 (14,283) (857,274) Proceeds on issuance of common shares, net of cash share issue costs 10 9,074,641 - Cash flow provided by financing activities 9,060,358 (857,274) Effects of exchange rate changes on cash and cash equivalents 4,719 (400,840) Increase (decrease) in cash and cash equivalents 4,331,461 (6,160,690) Cash and cash equivalents, beginning of period 908,702 12,345,191 Cash and cash equivalents, end of period 5,240,163 6,184,501 Supplemental cash flow information Initial recognition of right-of-use assets and lease obligations - 72,559 Shares issued for debt settlement 10 217,893 - Cash paid for income taxes - - Cash paid for interest - 126,493
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) 1) CORPORATE INFORMATION AND CONTINUANCE OF OPERATIONS American Pacific Mining Corp. (the “Company”) was incorporated under the Business Corporations Act (British Columbia) on July 1, 2017, and is in the business of mineral exploration. The Company’s head office, principal address, registered address and records office is Suite 910 - 510 Burrard Street, Vancouver, B.C., V6C 3A8, Canada. The Company’s shares are listed on the Canadian Securities Exchange (the “CSE”) under the symbol “USGD”. On February 25, 2022, the Company’s common shares began trading on the OTCQX Best Market (the “OTCQX”) under the ticker symbol of “USGDF”. As of the date of the se unaudited condensed consolidated interim financial statements, the Company has not identified a known body of commercial grade mineral on any of its properties. The ability of the Company to realize the costs it has incurred to date on these properties is dependent upon the Company identifying a commercial mineral body, to finance its development costs and to resolve any environmental, regulatory or other constraints which may hinder the successful development of the property. To date, the Company has not earned any revenues and is considered to be in the exploration stage. These unaudited condensed consolidated interim financial statements have been prepared assuming the Company will continue on a going -concern basis. The Company has incurred losses since its inception and the ability of the Company to continue as a going -concern depends upon its ability to raise adequate financing and to develop profitable operations. As of June 30, 2026, the Company had working capital of $ 18,391,105 (December 31, 2025 – $15,051,962) and an accumulated deficit of $53,101,025 (December 31, 202 5 – $45,112,762). The Company’s continuation as a going concern is dependent upon the successful results from its mineral property exploration activities and its ability to attain profitable operations and generate funds there from and/or raise equity capital or borrowings sufficient to meet current and future obligations. Management intends to fund operating costs over the next twelve months with cash and cash equivalents and through further equity financings. Management believes that the Company has sufficient working capital to meet its liabilities for the next twelve months. These unaudited condensed consolidated interim financial statements of the Company for the six months ended June 30, 2026, were approved by the Board of Directors on August 28, 2026. 2) MATERIAL ACCOUNTING POLICY INFORMATION AND BASIS OF PREPARATION Statement of compliance to International Financial Reporting Standards These unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with IFRS Accounting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). These financial statements comply with International Accounting Standard 34, Interim Financial Reporting. Basis of presentation These unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. This interim financial report does not include all of the information required of a full annual financial report and is intended to provide users with an update in relation to events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the end of the last annual reporting period. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Company for the year ended December 31, 20 25. For details regarding events occurring during the six months ended June 30, 2025, please refer to the unaudited condensed consolidated interim financial statements for during the six months ended June 30 , 202 5. Both financial statements are available on SEDAR at www.sedarplus.ca.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 9 of 25 2) MATERIAL ACCOUNTING POLICY INFORMATION AND BASIS OF PREPARATION (CONTINUED) New accounting standards New accounting standards issued and not yet effective The IASB has issued IFRS 18, Presentation and Disclosure in Financial Statements, replacing IAS 1, Presentation of Financial Statements. IFRS 18 introduces revised requirements for presenting and disclosing financial information, with the objective of improving consistency and comparability across entities. The updates include the definition of subtotals in the statement of profit or loss, such as operating profit and profit before financing and income taxes. Furthermore, it requires the disclosure of management-defined performance measures (MPMs), which are subtotals not specified by IFRS but represent management's view of performance. In addition, IFRS 18 enhances the principles of aggregation and disaggregation to ensure that material information is not obscured. This new standard is effective for annual reporting periods beginning on or after January 1, 2027, with early application permitted. The Company is currently assessing the potential impact of IFRS 18 on its consolidated financial statements, with the expectation that its adoption will enhance the quality and transparency of financial reporting. 3) DISPOSITION OF SUBSIDIARIES On March 25, 2026, the Company completed a court ‑approved plan of arrangement (the “ICG Arrangement”) with ICG Silver & Gold Ltd. (“ICG”) for the sale of its Tuscarora and Danny Boy projects (together, the “Tuscarora District”). The transaction was approved by shareholders on February 25, 2026 and received the final order of the Supreme Court of British Columbia on February 27, 2026. Under the ICG Arrangement, the Company sold all of the issued and outstanding shares of its wholly owned subsidiaries Clearview Gold Inc. and American Pacific Mining (US) Inc., the registered owners of the Tuscarora District, to ICG. In exchange, APM received: • 11,500,000 common shares of ICG (“ICG Consideration Shares”), and • A contingent cash payment of US$5 million (“ICG Contingent Payments”), payable upon either project achieving commercial production. Of the ICG Consideration Shares: • 7,500,000 shares were distributed to the Company’s shareholders on a pro rata basis (the “ICG Distribution Shares”), and • 4,000,000 shares were retained by the Company (the “ICG Retained Shares”). The loss on disposal was calculated as follows: $ Cash 1,026 Amounts receivable 1,100 Reclamation deposits 27,861 Assets held for sale 4,025,000 Fair value of net assets acquired 4,054,987 Consideration comprised of: Fair value of ICG Consideration Shares received 4,025,000 Transaction costs (251,180) 3,773,820 Loss on disposition of subsidiaries (281,167)
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 10 of 25 3) DISPOSITION OF SUBSIDIARIES (CONTINUED) As the ICG Contingent Payments depend on future exploration results and the commencement of commercial production of which the events that are highly uncertain and outside the Company’s control; as a result, management concluded that the probability of receiving the milestone payments i s too remote to meet the recognition criteria for contingent assets under IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Accordingly, no value has been assigned to the ICG Contingent Payments at the date of disposal. 4) CASH AND CASH EQUIVALENTS June 30, 2026 December 31, 2025 $ $ Cash 193,848 908,702 Cash equivalents 5,046,315 - 5,240,163 908,702 5) MARKETABLE SECURITIES As of June 30 , 2026 and December 31, 2025, the Company’s portfolio of marketable securities consisted of the following instruments: Number of shares Fair value # $ As at June 30, 2026 Vizsla Copper Corp. 13,888,888 12,849,952 ICG Silver & Gold Ltd. 4,000,000 1,800,000 14,649,952 As at December 31, 2025 Vizsla Copper Corp. 13,888,888 15,002,499 15,002,499 The changes in marketable securities during the six months ended June 30, 2026, are as follows: $ Fair value, opening 15,002,499 Consideration received on disposal 4,025,000 Change in fair value of marketable securities (1,752,547) Dividend distribution (2,625,000) Fair value, closing 14,649,952 Current 13,749,952 Non-current 900,000 Fair value, closing 14,649,952
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 11 of 25 5) MARKETABLE SECURITIES (CONTINUED) Vizsla Copper Corp. As of June 30, 2026, the Company measured the fair value of its investment in Vizsla Copper Corp. using a Discount for Lack of Marketability (DLOM) methodology, resulting in a fair value of $12,849,952. The resulting loss on change in fair value of $ 2,152,547 has been recognized in the consolidated statements of loss and comprehensive loss for the six months ended June 30, 2026. As of June 30, 2026, no common shares are classified as non ‑current, as the remaining resale restriction period is less than twelve months (December 31, 2025 – 472,222 common shares classified as non ‑current with a fair value of $3,750,625). As of June 30, 2026, the Company holds 13,888,888 common shares of Vizsla (December 31, 2025 – 13,888,888 common shares) with a quoted market value of $14,583,332 (December 31, 2025 – $18,888,888). ICG Silver & Gold Ltd. In connection with the completion of the ICG Arrangement, the Company received 11,500,000 ICG Consideration Shares with a total fair value of $4,025,000. Of these, 7,500,000 ICG Distribution Shares with a fair value of $2,625,000 were distributed to the Co mpany’s shareholders on a pro rata basis. The remaining 4,000,000 ICG Retained Shares, with an initial fair value allocation of $1,400,000, were retained by the Company. The ICG Consideration Shares are subject to the following voluntary resale restrictions: • 20% release upon the ICG listing date • 15% release on each of the 12‑month, 15‑month, 18‑month, and 21‑month anniversaries of the ICG listing date • 20% release on the 24‑month anniversary of the ICG listing date Despite these voluntary holding periods, the Company concluded that the quoted market price of the ICG common shares represents their fair value in accordance with IFRS 13, Fair Value Measurement, as the restrictions are holder- specific and do not transfer to market participants. As of June 30, 2026, the Company measured the fair value of the 4,000,000 ICG Retained Shares, resulting in a fair value of $1,800,000. The resulting gain on change in fair value of $400,000 has been recognized in the consolidated statements of loss and comprehensive loss for the six months ended June 30, 2026. As of June 30, 2026, 2,000,000 ICG Retained Shares, with a fair value of $900,000, are classified as non‑current assets, as the remaining resale restriction period extends beyond twelve months. 6) INVESTMENTS During the year ended December 31, 2024 , the Company entered into an escrow agreement with Dowa Metals & Mining Alaska Ltd. (“Dowa”). Pursuant to this agreement, the Company committed to deposit US$2,875,000 into an escrow account, which will remain in place until April 28, 2028. This amount has been allocated to an investment account accruing interest at an annual rate of 0.9%. As of June 30 , 2026 , the investment account balance was $ 4,140,017 (US$2,912,060) ( December 31, 202 5 – $3,976,769 (US$ 2,901,226))
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 12 of 25 7) PROPERTY AND EQUIPMENT Building Computer equipment Field equipment Right-of- use assets Total $ $ $ $ $ COST As of December 31, 2025 65,063 13,581 9,614 72,559 160,817 Addition - - 17,858 - 17,858 Disposal - (3,912) - - (3,912) Write-off fully depreciated assets (65,063) - - - (65,063) Effect of movements on exchange rates - 63 839 - 902 As of June 30, 2026 - 9,732 28,311 72,559 110,602 ACCUMULATED DEPRECIATION As of December 31, 2025 (65,063) (8,582) (1,351) (22,177) (97,173) Addition - (1,283) (926) (12,096) (14,305) Disposal - 3,912 - - 3,912 Write-off fully depreciated assets 65,063 - - - 65,063 Effect of movements on exchange rates - (63) (80) - (143) As of June 30, 2026 - (6,016) (2,357) (34,273) (42,646) Net book value as of June 30, 2026 - 3,716 25,954 38,286 67,956 During the six months ended June 30 , 2026, the Company charged $ 14,305 (June 30 , 2025 – $1,215,255) in depreciation of which $ 926 was recognized as exploration and evaluation costs in the statements of loss (Note 8) (June 30, 2025 – $1,185,172). 8) EXPLORATION AND EVALUATION ASSETS Exploration and evaluation assets Balance as of December 31, 2025 Acquisition costs Effect of movements in exchange rate Balance as of June 30, 2026 Project / Property $ $ $ $ Gooseberry 78,290 - 5,800 84,090 Madison 8,999,795 68,608 155,438 9,223,841 9,078,085 68,608 161,238 9,307,931
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 13 of 25 8) EXPLORATION AND EVALUATION ASSETS (CONTINUED) Exploration and evaluation costs During the six months ended June 30, 2026 Gooseberry project Madison project Red Hill project Ziggurat Project TOTAL $ $ $ $ $ Consulting 13,365 348,797 23,257 21,291 406,710 Depreciation - 926 - - 926 Drilling - 619,073 - - 619,073 Field - 61,023 2,023 1,861 64,907 Field office administration 10,472 5,252 - 12,209 27,933 Field technicians - 1,530 - - 1,530 Geological 13,435 90,666 - 2,769 106,870 Mapping - 258,757 - - 258,757 Sample analysis - 7,341 1,809 7,816 16,966 Travel 1,119 68,602 5,782 11,463 86,966 38,391 1,461,967 32,871 57,409 1,590,638 During the six months ended June 30, 2025 Gooseberry project Madison project Tuscarora project Palmer Property Danny Boy Mine Property TOTAL $ $ $ $ $ $ Consulting 6,167 175,547 13,569 264,735 16,966 476,984 Depreciation - 7,181 - 1,177,991 - 1,185,172 Drilling - 653,467 - - - 653,467 Equipment rental - 5,945 - - - 5,945 Field - 36,128 - 298,321 - 334,449 Field office administration 1,714 96 2,358 1,020,710 - 1,024,878 Geological 3,606 181,183 8,654 155,878 7,184 356,505 Mapping - 4,508 - - - 4,508 Royalty payments - - 121,147 29,935 - 151,082 Sample analysis - 104,648 - - - 104,648 Transportation - - - 12,294 - 12,294 Travel 1,610 52,168 1,209 78,634 - 133,621 Technical studies - - - 112,540 - 112,540 Social responsibility - - - 704 - 704 13,097 1,220,871 146,937 3,151,742 24,150 4,556,797
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 14 of 25 8) EXPLORATION AND EVALUATION ASSETS (CONTINUED) 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 all of its exploration and evaluation assets, and, to the best of its knowledge, title to all of its properties, are properly registered and in good standing. Madison Project (Montana, USA) The Madison Project was under an earn -in, joint venture agreement signed by Broadway Gold Corp. (“Broadway”), a wholly -owned subsidiary of the Company, on April 30, 2019, whereby Kennecott Exploration Company (“Kennecott”), part of the Rio Tinto Group (ASX , LON: RIO) must spend US$30 million to earn up to 70% of the Madison Project (the “MP Earn-In Agreement”). On February 5, 2024, Kennecott decided not to proceed with the MP Earn -In Agreement; as a result, the Company regained 100% ownership of Madison. The Company has reclamation deposits of $ 354,597 (US$249,421) (December 31, 2025 – $127,821 (US$93,251)) as collateral on the Madison Project. Gooseberry Project (Nevada, USA) On April 23, 2019, the Company acquired through staking the Gooseberry Mine in Storey County, Nevada, USA. The Company is required to pay annual claim maintenance fees for the Gooseberry Project. The Company has made the required annual claim maintenance fees to date for the Gooseberry Project. The Company has reclamation deposits of $ 21,325 (US$15,000) (December 31, 202 5 – $20,561 (US$15,000) ) as collateral on the Gooseberry Project. South Lida Project (Nevada, USA) The Company holds 100% in the South Lida Project, originally acquired from related parties. The Company is required to pay annual claim maintenance fees for the South Lida Project. The Company has made the required annual claim maintenance fees to date for the South Lida Project. As of December 31, 202 4, the Company’s management deci ded not to conduct any significant work on the South Lida Project in the near future; as a result, the Company wrote off the capitalized costs of $ 718,366 associated with the South Lida Project during the year ended December 31, 2024. In connection with the impairment made during the year ended December 31, 2024, the Company wrote off the additional capitalized costs of $18,578 associated with the South Lida Project during the year ended December 31, 2025.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 15 of 25 8) EXPLORATION AND EVALUATION ASSETS (CONTINUED) Red Hill Project (Nevada, USA) On July 29, 2021 (the “RH Effective Date”), the Company entered into a ten-year renewable lease agreement for the Red Hill Project (the “RH Lease Agreement”) with Nevada North Resources (USA) Inc. (“Nevada North”). Pursuant to the RH Lease Agreement the Company is required to make the first payment of US$25,000 (paid) Nevada North to hold the Red Hill property for one year from the RH Effective Date and make the following annual payment to Nevada North: • 2nd payment on July 29, 2022 – US$25,000 (paid); • 3rd payment on July 29, 2023 – US$25,000 (paid); • 4th payment on July 29, 2024 – US$40,000 (paid); • 5th payment on July 29, 2025 – US$40,000; (paid) • 6th payment on July 29, 2026 – US$45,000; (paid) • 7th payment on July 29, 2027 – US$50,000; • 8th payment on July 29, 2028 – US$55,000; • 9th payment on July 29, 2029 – US$55,000; and • 10th payment on July 29, 2030 – US$55,0001. In addition, the Company is required to pay annual claim maintenance fees for the Red Hill Project. The Company has made the required annual claim maintenance fees to date for the Red Hill Project. Upon commencement of commercial production , the Company is required to pay Nevada North a royalty on production equal to 3% of NSR of which 1.5% the Company may be bought back for US$3,000,000. In addition, one of the Company’s directors own 10% interest of the Red Hill Project. As of December 31, 2024, the Company’s management deci ded not to conduct any significant work on the Red Hill Project in the near future; as a result, the Company wrote off the capitalized costs of $ 251,067 associated with the Red Hill Project during the year ended December 31, 2024. In connection with the impairment made during the year ended December 31, 2024, the Company wrote off the additional capitalized costs of $78,587 associated with the Red Hill Project during the year ended December 31, 2025. 1 Beginning on the 11th payment due on July 29, 2031, the annual payment of US$55,000 will be adjusted for inflation based on to the United States Depart of Labor Consumer Price Index.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 16 of 25 8) EXPLORATION AND EVALUATION ASSETS (CONTINUED) Ziggurat Project (Nevada, USA) In connection with the acquisition of CGI , the Company acquired the Ziggurat Project which is 100% owned by CGI and is currently under a joint venture agreement with Centerra Gold Inc . (“Centerra”). Centerra has the option to spend up to US$6 million to earn 70% of the project until Year 2026. During the year ended December 31, 3024, Centerra terminated the Ziggurat Option Agreement. During the year ended December 31, 2024, NewQuest initiated legal action against the Company, asserting entitlement to the Bonus Shares. The Company disputes the claim and intends to vigorously defend its position. In addition, the Company is required to pay annual claim maintenance fees for the Ziggurat Project. The Company has made the required annual claim maintenance fees to date for the Ziggurat Project. As of December 31, 2024, the Company’s management decided not to conduct any significant work on the Ziggurat Project in the near future; as a result, the Company wrote off the capitalized costs of $2,277,708 associated with the Ziggurat Project during the year ended December 31, 2024. In connection with the impairment made during the year ended December 31, 2024, the Company wrote off the additional capitalized costs of $148,699 associated with the Ziggurat Project during the year ended December 31, 2025. 9) LEASE OBLIGATIONS $ As of December 31, 2025 53,814 Accretion 2,804 Payments (14,283) As of June 30, 2026 42,335 Current 25,621 Long-term 16,714 42,335 Minimum lease payments for each fiscal year: 2026 14,352 2027 29,452 2028 2,460 46,264 Amount representing interest 2026 (2,094) 2027 (1,835) (3,929) During the six months ended June 30, 2026, the expense related to payments classified as short -term leases, which are not included in the measurement of the lease liability, amounted to $nil (June 30, 2025 – $12,424).
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 17 of 25 10) SHARE CAPITAL AND RESERVES Authorized share capital Unlimited number of common shares without par value. Issued share capital As of June 30, 2026, the Company had 264,687,955 (December 31, 2025 – 219,088,051) common shares issued and outstanding with a value of $77,124,076 (December 31, 2025 – $69,267,936). During the six months ended June 30, 2026 • On February 5, 2026, t he Company completed a non ‑brokered private placement, issuing 44,318,182 units at a price of $0.22 per unit for gross proceeds of $9,750,000. Each unit consists of one common share and one ‑half of one transferable share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of $0.32 until February 5, 2029. In connection with the private placement, the Company: - paid cash finders’ fees of $623,431; - issued finders’ warrants totaling 883,050 warrants exercisable at $0.32 and 1,864,730 warrants exercisable at $0.22, each with a 36‑month term from the closing date; and - incurred additional share issuance costs of $51,928. The Company estimated the fair value of the finders’ warrants using the Black ‑Scholes option pricing model, applying the following assumptions: - risk‑free interest rate: 2.85% - expected life: 3 years - expected volatility: 76% - expected dividend yield: 0% The resulting fair value of $230,355 was recorded as share issuance costs. For accounting purposes, the Company applied the residual method to allocate the net proceeds of $8,844,286 between common shares and warrants, determining that $1,206,039 was allocated to the warrants. • The Company issued 1,281,722 common shares with a fair value of $217,893 to three former employees on January 5, 2026, in full settlement of employment‑related liabilities totaling $233,200. As a result, the Company recognized a gain on debt settlement of $15,307 in the consolidated statements of loss and comprehensive loss for the six months ended June 30, 2026. During the six months ended June 30, 2025, no share capital transactions occurred.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 18 of 25 10) SHARE CAPITAL AND RESERVES (CONTINUED) Warrants The changes in warrants during the six months ended June 30, 2026 are as follows: Number outstanding Weighted average exercise price ($) Balance, opening 16,096,099 0.31 Issued 24,906,871 0.31 Expired (12,207,250) 0.30 Balance, closing 28,795,720 0.32 During the six months ended June 30, 2026, 12,207,250 warrants expired unexercised. Except for the items mentioned above, no warrants were issued, exercised, or expired during the six months ended June 30, 2026, and 2025. The following summarizes information about warrants outstanding as of June 30, 2026: Expiry date Exercise price ($) Warrants outstanding Estimated grant date fair value ($) Weighted average remaining contractual life (in years) August 12, 2026 0.34 3,888,849 1,086,914 0.12 February 5, 2029 0.22 1,864,730 167,187 2.61 February 5, 2029 0.32 23,042,141 1,269,207 2.61 28,795,720 2,523,308 2.27 Weighted average exercise price ($) 0.32 Subsequent to June 30, 2026, 3,888,849 warrants expired unexercised.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 19 of 25 10) SHARE CAPITAL AND RESERVES (CONTINUED) Stock options The Company has a Stock Option Plan (the “Plan”) applicable to directors, officers and consultants, under which the total outstanding stock options are limited to 10% of the outstanding common shares of the Company at any one time. Under the plan, an option’s maximum term is ten years from the grant date. Under the stock option plan, the Board of the Company has the option of determining vesting periods. The changes in options during the six months ended June 30, 2026, are as follows: Number outstanding Weighted average exercise price ($) Balance, opening 11,295,546 0.46 Expired (1,700,000) 0.27 Balance, closing 9,595,546 0.49 During the six months ended June 30, 2026, 1,700,000 options expired, unexercised During the six months ended June 30, 2025, 50,000 options expired, unexercised Except for the items mentioned above, no stock options were granted, exercised or expired during the six months ended June 30, 2026, and 2025. The following summarizes information about stock options outstanding and exercisable as of June 30, 2026: Expiry date Exercise price ($) Options outstanding Options exercisable Estimated grant date fair value ($) Weighted average remaining contractual life (in years) July 19, 2026 0.71 100,000 100,000 47,247 0.05 October 25, 2026 0.34 745,546 745,546 194,822 0.32 February 28, 2027 1.01 2,900,000 2,900,000 1,827,754 0.67 November 23, 2028 0.25 5,500,000 5,500,000 835,776 2.40 September 18, 2029 0.20 150,000 150,000 14,069 3.22 September 18, 2030 0.25 200,000 200,000 24,329 4.22 9,595,546 9,595,546 2,943,997 1.74 Weighted average exercise price ($) 0.49 0.49 Subsequent to June 30, 2026, 100,000 options expired unexercised. Dividends As discussed in Note 3, in connection with the completion of the ICG Arrangement, the Company distributed 7,500,000 ICG Distribution Shares to its shareholders on a pro rata basis. The ICG Distribution Shares had a fair value of $2,625,000 at the distribution date, which was recognized as a dividend to shareholders. The dividend did not result in any gain or loss in profit or loss, as the transaction represents a distribution of equity to owners. The carrying amount of the distributed shares was derecognized from marketable securities , and the corresponding fair value was recorded directly in equity as a reduction of retained earnings.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 20 of 25 11) RELATED PARTY TRANSACTIONS AND BALANCES Key management personnel include persons having the authority and responsibility for planning, directing, and controlling the activities of the Company as a whole. The Company has determined that key management personnel consist of executive and non-executive members of the Company’s Board of Directors and corporate officers. The following table discloses the total compensation incurred to the Company’s key management personnel during the six months ended June 30, 2026, and 2025: For the six months ended June 30, 2026 June 30, 2025 $ $ Warwick Smith, CEO and Director Consulting fees (1) 503,533 153,533 Eric Saderholm, Managing Director of Exploration and Director Consulting fees 36,507 2,547 Exploration and evaluation costs 140,073 133,223 176,580 135,770 Alnesh Mohan, CFO and Corporate Secretary Professional fees (2) 192,292 160,053 Ken Cunningham, Director Directors’ fees 33,411 34,720 Joness Lang, Senior Strategic Advisor and Director, Former President Consulting fees (3) 42,000 75,000 Ali Hakimzadeh, Director Directors' fees 33,529 33,647 Peter Mercer, Senior Vice President, Advance Projects and President of Constantine North Inc. (4) Management fees - 130,000 TOTAL 981,345 722,723 (1) Paid to Harbourside Consulting Ltd. which is controlled by Mr. Smith. (2) Paid to Quantum Advisory Partners LLP, an accounting firm in which Mr. Mohan is an incorporated partner. Fees were paid for provision of CFO, financial reporting, accounting support and transaction support services. (3) Paid to EBC Consulting Group Ltd. which is controlled by Mr. Lang. (4) The Constantine Group was disposed of to Vizsla on December 5, 2025. As of June 30, 2026, the balances due to the Company’s directors and officer included in accounts payables and accrued liabilities were $ 42,563 (December 31, 202 5 – $154,126), which were paid subsequent to June 30, 2026. These amounts are unsecured, non‐interest bearing and payable on demand.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 21 of 25 12) SEGMENTED INFORMATION The Company operates in one reportable segment being the exploration and evaluation of mineral properties. The Company’s non-current assets are located as follows: June 30, 2026 Canada United States $ $ $ Non-current assets Reclamation deposits 375,922 - 375,922 Investments 4,140,017 - 4,140,017 Property and equipment 67,956 42,000 25,956 Exploration and evaluation assets 9,307,931 - 9,307,931 December 31, 2025 Canada United States $ $ $ Non-current assets Reclamation deposits 175,796 - 175,796 Investments 3,976,769 - 3,976,769 Property and equipment 63,644 55,379 8,265 Exploration and evaluation assets 9,078,085 - 9,078,085 13) CAPITAL MANAGEMENT The Company defines its components of shareholders’ equity as capital. The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue business opportunities and to maintain a flexible capital structure that optimizes the costs of capit al at an acceptable risk. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust capital structure, the Company may consider issuing new shares, and/or issue debt, acquire or dispose of assets, or adjust the amount of cash on hand. The Company’s investment policy is to keep its cash on deposit in an interest -bearing Canadian chartered bank account. There have been no changes to the Company’s approach to capital management at any time during the six months ended June 30, 2026. The Company is not subject to externally imposed capital requirements.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 22 of 25 14) FINANCIAL INSTRUMENTS Fair value Financial instruments are classified into one of the following categories: FVTPL, amortized cost and FVTOCI. Set out below are the Company’s financial assets and liabilities by category: June 30, 2026 FVTPL Amortized costs FVTOCI $ $ $ $ FINANCIAL ASSETS ASSETS Cash and cash equivalents 5,240,163 - 5,240,163 - Marketable securities (current and non- current) 14,649,952 14,649,952 - - Amounts receivable 139,462 - 139,462 - Reclamation deposits 375,922 - 375,922 - Investments 4,140,017 - 4,140,017 - FINANCIAL LIABILITIES LIABILITIES Accounts payable and accrued liabilities (1,248,013) - (1,248,013) - Current portion of lease obligations (25,621) - (25,621) - Lease obligations (16,714) - (16,714) - December 31, 2025 FVTPL Amortized costs FVTOCI $ $ $ $ FINANCIAL ASSETS ASSETS Cash and cash equivalents 908,702 - 908,702 - Marketable securities (current and non- current) 15,002,499 15,002,499 - - Amounts receivable 220,978 - 220,978 - Reclamation deposits 175,796 - 175,796 - Investments 3,976,769 - 3,976,769 - FINANCIAL LIABILITIES LIABILITIES Accounts payable and accrued liabilities (1,526,688) - (1,526,688) - Current portion of lease obligations (23,737) - (23,737) - Lease obligations (30,077) - (30,077) -
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 23 of 25 14) FINANCIAL INSTRUMENTS (CONTINUED) Fair value (continued) The carrying values of cash and cash equivalents, amounts receivable, other receivables and accounts payable and accrued liabilities approximate their fair values due to the relatively short period to maturity of those financial instruments. Investments are assessed to approximate their fair value as they are not subject to significant fluctuations. Reclamation deposits approximately their fair value due to their liquidity. Lease obligations approximate its fair value as it has been discounted with an interest rate comparable to current market rates. Marketable securities are measured using either the quoted market price or, where applicable, a DLOM to reflect contractual resale restrictions (Note 5). IFRS 13 establishes a fair value hierarchy that reflects the significance of inputs used in making fair value measurements as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly (i.e., as prices) or indirectly (i.e., derived from prices); and Level 3: Inputs that are not based on observable market data. The Company has determined the estimated fair values of its financial instruments based upon appropriate valuation methodologies. As of June 30, 2026, and December 31, 2025 , the financial instrument recorded at fair value on the consolidated statement of financial position is marketable securities which are measured using Level 3 of the fair value hierarchy. There were no financial assets or liabilities measured and recognized in the consolidated statement of financial position at fair value that would be categorized as Level 1 and 3 in the fair value hierarchy above. Financial risk management Credit risk Credit risk refers to the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company's exposure to credit risk includes cash and cash equivalents, amounts receivable, and investments. The Company's cash and cash equivalents and investments are held at large financial institutions in Canada and the United States in interest-bearing accounts. The Company has no investments in asset -backed commercial paper. The Company's maximum exposure to credit risk is the carrying value of its financial assets. Management believes that the concentration of credit risk with respect to these financial instruments is remote. Cash and cash equivalents and investments held in Canada and the United States are accessible. The Company's amounts receivable balance mainly includes amounts due from the Government of Canada. The Company believes that the credit exposure from these receivables is not significant.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 24 of 25 14) FINANCIAL INSTRUMENTS (CONTINUED) Financial risk management (continued) Liquidity risk Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with financial instruments. The Company manages liquidity by maintaining adequate cash balances to meet liabilities as they become due. As of June 30, 2026, the Company had cash and cash equivalents of $5,240,163 and accounts payable and accrued liabilities of $1,248,013. Market risk The significant market risks to which the Company is exposed are interest rate risk, foreign currency risk, and price risk. Interest Rate Risk Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s interest rate risk principally arises from the interest rate impact of interest earned on cash and cash equivalents. A 1% change in interest rates on the balance of cash and cash equivalents and investments as of June 30, 2026, would result in an approximately $ 50,000 change to the Company’s loss for the six months ended June 30, 2026. Foreign Currency risk The Company is exposed to currency risk to the extent that monetary assets and liabilities held by the Company are not denominated in Canadian dollars ( “$” or “CA$”). The Company has not entered into any foreign currency contracts to mitigate this risk. The Company’s cash, amounts receivable , reclamation deposits , and accounts payable and accrued liabilities are held in CA$ and United States dollars (“US”); therefore, US accounts are subject to fluctuation against the C A$. The Company’s financial instruments were denominated as follows as of June 30, 2026: CA$ US$ Cash and cash equivalents 5,237,952 1,555 Marketable securities (current and non-current) 14,649,952 - Amounts receivable 139,462 - Reclamation deposits - 264,421 Investments - 2,912,060 Accounts payable and accrued liabilities (401,627) (595,342) Current portion of lease obligations (25,621) - Lease obligations (16,714) - 19,583,404 2,582,694 Rate to convert to $1.00 CA$ 1.00 1.42 Equivalent to CA$ 19,583,404 3,671,764 Based on the above net exposures as of June 30, 2026, and assuming that all other variables remain constant, a 10% change of the CAD against the US would change profit or loss by approximately $ 360,000.
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American Pacific Mining Corp. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Six Months Ended June 30, 2026 (Expressed in Canadian Dollars) Page 25 of 25 14) FINANCIAL INSTRUMENTS (CONTINUED) Financial risk management (continued) Other price risk Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices other than those arising from interest rate risk, financial market risk, or currency risk. As of June 30, 2026, the Company held common shares of publicly traded issuers (Note 5). A 10% change in the quoted market price of these shares a s of June 30, 2026 would result in an approximate change of $1, 400,000 in the Company’s comprehensive loss for the six months ended June 30, 2026, assuming all other variables remain constant. Other than this exposure, the Company is not subject to significant other price risk. Commodity price risk The Company is exposed to price risk with respect to commodity prices. The Company’s ability to raise capital to fund exploration and development activities may be subject to risks associated with fluctuations in the market price of commodities. The Company is not exposed to significant other price risk.