FS

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# FS

Source: https://westredlakegold.com/wp-content/uploads/2025/11/WRLG-Q3-2025-FS-FINAL.pdf
Published: 2025-11-25T00:00:00+00:00
Fetched: 2026-05-12T16:33:56.111+00:00
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## Content

# FS
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For The Three Months and Nine Months Ended September 30, 2025 and August 31, 2024
(Expressed In Thousands of Canadian Dollars) - Unaudited
West Red Lake Gold Mines Ltd.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in Thousands of Canadian dollars) - Unaudited
As at September 30, As at December 31,
2025 2024
Assets
Current assets
Cash and cash equivalents $ 45,789 $ 36,880
Inventories (Note 6) 7,248 1,280
Receivables (Note 5) 2,097 1,431
Advances and prepaid expenses 2,232 1,195
Deferred transaction costs (Note 10) - 751
57,366 41,537
Mineral property, plant and equipment (Note 7) 184,655 94,939
Advances for plant and equipment 737 247
Restricted cash 170 170
Total assets $ 242,928 $ 136,893
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 22,156 $ 24,665
Credit facility (Note 10) 3,472 -
Lease liabilities (Note 8) 4,410 1,400
Gold-linked notes (Note 9) 4,609 -
Flow-through premium (Note 12) 1,053 615
35,700 26,680
Gold-linked notes (Note 9) 49,947 37,573
Credit facility (Note 10) 40,605 18,913
Provision for reclamation and closure (Note 11) 22,376 21,829
Lease liabilities (Note 8) 9,663 2,435
Total liabilities $ 158,291 $ 107,430
Equity
Share capital (Note 12) $ 234,719 $ 177,677
Reserves 26,423 19,089
Accumulated other comprehensive (loss) income (75) 109
Accumulated deficit (176,430) (167,412)
Total equity 84,637 29,463
Total liabilities and equity $ 242,928 $ 136,893
Commitments and contingencies (Note 19)
Subsequent events (Note 21)
Approved and authorized for issuance on behalf of the Board of Directors:
"Thomas W. Meredith" “Susan Neale”
Director Director
The accompanying notes are an integral part of these condensed interim consolidated financial statements
2
West Red Lake Gold Mines Ltd.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in Thousands of Canadian dollars, except per share and share information) - Unaudited
Three months Three months Nine months Nine months
ended ended ended ended
September 30, August 31, September 30, August 31,
2025 2024 2025 2024
Revenue $ 32,479 $ - $ 58,902 $ -
Cost of sales
Production costs (20,704) - (37,287) -
Depreciation (806) - (1,289) -
Income from mining operations 10,969 - 20,326 -
General and administrative expenses (Note 13) (2,515) (3,059) (8,017) (8,114)
Share-based compensation expenses (Note 12) (757) (1,686) (4,255) (4,040)
Exploration and evaluation expenses (Note 7) (499) (21,008) (1,276) (46,728)
Gain (loss) from operations 7,198 (25,753) 6,778 (58,882)
Change in fair value of gold-linked notes (Note 9) (8,226) (2,557) (18,068) (4,266)
Finance expense (Note 14) (1,185) (1,294) (2,785) (4,867)
Finance income 128 484 472 961
Other income (Note 15) 1,396 1,366 2,717 1,366
Foreign exchange gain (loss) (1,696) 344 1,868 114
Net loss $ (2,385) $ (27,410) $ (9,018) $ (65,574)
Other comprehensive income (loss) (Note 9) (579) 315 (184) 79
Net loss and comprehensive loss $ (2,964) $ (27,095) $ (9,202) $ (65,495)
Net loss per common share
Basic $ (0.01) $ (0.10) $ (0.03) $ (0.27)
Diluted (0.01) (0.10) (0.03) (0.27)
Weighted average number of common shares outstanding
Basic 352,179,589 270,031,548 342,285,909 241,249,556
Diluted 352,179,589 270,031,548 342,285,909 241,249,556
The accompanying notes are an integral part of these condensed interim consolidated financial statements
3
West Red Lake Gold Mines Ltd.
Condensed Interim Consolidated Statements of Changes in Equity
(Expressed in Thousands of Canadian dollars except share information) - Unaudited
Share Capital
Accumulated
other
Shares comprehensive Accumulated Total
Issued Amount Reserves income (loss) Deficit Equity
At November 30, 2023 215,172,729 $ 110,846 $ 6,811 $ - $ (51,622) $ 66,035
May 2024 Public offering (net of costs) (Note 12) 31,944,700 20,904 - - - 20,904
May 2024 Flow-through Public offering (net of costs) (Note
12) 11,236,000 7,179 - - - 7,179
Settlement of promissory note 6,900,000 3,588 - - - 3,588
Settlement of debt (Note 12) 50,000 30 - - - 30
Shares issued on exercise of warrants (Note 12) 4,845,125 3,569 (803) - - 2,766
Shares issued on exercise of stock options (Note 12) 576,200 532 (195) - - 337
Shares issued on exercise of RSUs and DSUs (Note 12) 655,332 405 (405) - - -
Warrants issued gold-linked notes (Note 9) - - 7,268 - - 7,268
Share-based compensation (Note 12) - - 4,040 - - 4,040
Loss and comprehensive income (loss) - - - 79 (65,574) (65,495)
At August 31, 2024 271,380,086 $ 147,053 $ 16,716 $ 79 $ (117,196) $ 46,652
At December 31, 2024 318,877,672 $ 177,677 $ 19,089 $ 109 $ (167,412) $ 29,463
February 2025 flow-through public offering (net of costs)
(Note 12) 23,628,000 13,006 3,308 - - 16,314
September 2025 public offering (net of costs) (Note 12) 37,526,800 33,312 - - - 33,312
September 2025 flow-through public offering (net of costs)
(Note 12) 3,760,000 3,611 - - - 3,611
Shares issued on exercise of warrants (Note 12) 6,307,989 5,133 (1,163) - - 3,970
Shares issued on exercise of stock options (Note 12) 1,091,250 1,033 (450) - - 583
Shares issued on exercise of RSUs and DSUs (Note 12) 1,225,663 947 (947) - - -
Warrants issued – credit facility (Note 10) - - 2,331 - - 2,331
Share-based compensation (Note 12) - - 4,255 - - 4,255
Loss and comprehensive loss - - - (184) (9,018) (9,202)
At September 30, 2025 392,417,374 $ 234,719 $ 26,423 $ (75) $ (176,430) $ 84,637
The accompanying notes are an integral part of these condensed interim consolidated financial statements
4
West Red Lake Gold Mines Ltd.
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in Thousands of Canadian dollars) - Unaudited
Nine months Nine months
ended ended
September 30, August 31,
2025 2024
Operating activities
Loss $ (9,018) $ (65,574)
Adjust for:
Share-based compensation (Note 12) 4,255 4,040
Change in fair value of gold-linked notes (Note 9) 18,068 4,266
Interest expense on gold-linked notes (Note 9) - 1,973
Financing cost gold-linked notes (Note 9) - 2,189
Loss on debt conversion - 126
Amortization of flow-through premium (Note 15) (2,711) (275)
Reclamation accretion expense (Note 14) 491 472
Credit facility accretion expense (Note 14) 1,592
Unrealized foreign exchange loss (2,152) (237)
Depreciation 1,289 1,051
Interest expense on lease liabilities (Note 14) 693 106
Changes in non-cash working capital items:
Receivables (666) (647)
Advances and prepaid expenses (1,037) 197
Inventories (5,845) (533)
Accounts payable and accrued liabilities (18,288) 6,225
(13,329) (46,621)
Investing activities
Mineral property, plant and equipment expenditures (Note 7) (55,692) (4,451)
(55,692) (4,451)
Financing activities
Proceeds on issuance of common shares (Note 12) 35,650 23,000
Proceeds on issuance of flow-through shares (Note 12) 25,054 10,000
Proceeds from exercise of warrants (Note 12) 3,970 2,766
Proceeds from exercise of stock options (Note 12) 583 337
Share issuance costs (Note 12) (4,319) (3,006)
Gold-linked notes issued - 32,946
Gold-linked notes financing - (2,780)
Interest payments on debt (7,127) (1,230)
Proceeds from drawdown of credit facility (Note 10) 28,200 -
Credit facility financing costs (Note 10) (1,407) -
Payment on lease liabilities (Note 8) (2,674) (1,375)
77,930 60,658
Change in cash and cash equivalents 8,909 (9,587)
Cash and cash equivalents, beginning of period 36,880 16,309
Cash and cash equivalents, end of period $ 45,789 $ 25,896
Supplemental Schedule of Non-Cash Investing and Financing Activities
Fair value of loan bonus warrants issued for credit facility $ 2,454 $ -
Mineral property, plant and equipment included in accounts $ 3,511 $ 301
payable and accrued liabilities in the prior year
Mineral property, plant and equipment included in accounts $ (20,042) $ -
payable and accrued liabilities at period end
Settlement of deferred consideration with shares $ - $ 3,588
Settlement of deferred consideration with gold-linked notes $ - $ 3,928
Settlement of debt with shares $ - $ 30
The Company did not make any cash payments for income taxes during the nine months ended September 30,
2025 or August 31, 2024.
The accompanying notes are an integral part of these condensed interim consolidated financial statements
5
West Red Lake Gold Mines Ltd.
Notes to the Condensed Interim Consolidated Financial Statements
For the three and nine months ended September 30, 2025 and August 31, 2024
(Expressed in Thousands of Canadian dollars unless otherwise stated) – Unaudited
1. NATURE OF OPERATIONS
West Red Lake Gold Mines Ltd. (the “Company” or “WRLG”) was incorporated under the Business Corporations Act
(Ontario) as New Dolly Varden Minerals Inc., and continued under the Business Corporations Act (British Columbia) on
November 27, 2017, as DLV Resources Ltd. The Company changed its name to West Red Lake Gold Mines Ltd. on
December 29, 2022, and is listed on the TSX Venture Exchange (“TSXV”) under the symbol ‘WRLG’. The Company’s
registered and records office is 25th Floor, 700 West Georgia Street, Vancouver, British Columbia, V7Y 1B3.
The Company is an exploration and development stage entity engaged in the acquisition, exploration and evaluation and
development of gold properties in the Red Lake Gold District of Northwestern Ontario. The Company is focused on the
development and restart of the Madsen Gold Mine (“the Madsen Mine” or “Madsen”) and exploration at its 100% owned
Rowan Property, both located in the Red Lake Gold District of Northwestern Ontario.
The business of exploring for minerals and development of projects involves a high degree of risk. The Company is an
exploration and development company and is subject to risks and challenges that are similar to companies in a
comparable stage. These risks include, but are not limited to, the challenges of securing adequate capital; development
and operational risks inherent in the mining industry; changes in government policies and regulations; the ability to obtain
the necessary environmental permits or, alternatively the Company’s ability to dispose of its exploration and evaluation
and development assets on an advantageous basis. The Company has not achieved commercial production to date and
although the Company currently is producing revenue during the ramp up phase, the estimated revenue will be lower
than what is needed to operate. Although the Company has been successful in the past in obtaining financing, there is
no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms that are
acceptable to the Company.
2. BASIS OF PREPARATION
Basis of Presentation
These condensed interim consolidated financial statements have been prepared in accordance with International
Accounting Standard (“IAS”) 34, Interim Financial Reporting, using accounting policies consistent with IFRS® Accounting
Standards as issued by the International Accounting Standards Board (“IFRS”). Certain disclosures required by IFRS
have been condensed or omitted in the following note disclosures as they are disclosed or have been disclosed on an
annual basis only. Accordingly, these condensed interim consolidated financial statements should be read in conjunction
with the consolidated financial statements for the 13 months ended December 31, 2024 and for the 12 months ended
November 30, 2023 (“Annual Financial Statements”), which have been prepared in accordance with IFRS. The condensed
interim consolidated financial statements were authorized for issue by the Board of Directors on November 25, 2025.
Basis of Consolidation
These condensed interim consolidated financial statements include the accounts of the Company and its wholly owned
subsidiaries West Red Lake

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