Company: PRMLF
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001641172-25-000043
Chunk: 46

Company: NexMetals Mining Corp.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 46
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 the Company’s financing transactions, units are issued containing Common Share purchase warrants. The fair value of these
Common Share purchase warrants are calculated using a Monte Carlo model, which models the probability of a number of different outcomes
not easily predicted.

(e)Deferred
                                            tax

The
Company uses the asset and liability method in accounting for deferred taxes. Under this method, deferred taxes are recognized for
future income tax. In preparing these estimates, management is required to interpret substantially enacted legislation as well as economic
and business conditions along with management’s tax and corporate structure plans which may impact taxable income in future periods.

(f)Asset
                                            retirement obligations

Management’s
best estimates regarding asset retirement obligations are based on the current economic environment. Changes in estimates of contamination,
restoration standards and restoration activities result in changes to provisions from period to period. Actual asset retirement obligations
will ultimately depend on future market prices for future restoration obligations.

Item
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Quantitative
and qualitative disclosures about market risk have been omitted as permitted under rules applicable to smaller reporting companies.

Item
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The
audited financial statements of Premium Resources Ltd. as of December 31, 2024 and 2023 are appended to this Report beginning on page
F-1.

-34-

(Formerly
Premium Nickel Resources Ltd.)

Consolidated
Financial Statements

For
the years ended December 31, 2024 and 2023

In
accordance with generally accepted accounting principles in the United States and pursuant to the rules and regulations of the U.S. Securities
and Exchange Commission and stated in Canadian dollars, unless otherwise indicated

INDEX

Independent Auditor’s Report (PCAOB ID 1930)

Consolidated
Financial Statements

    ■
    Consolidated Balance Sheets

    ■
    Consolidated Statements of Operations and Comprehensive Loss

    ■
    Consolidated Statements of Changes in Shareholders’ (Deficiency) Equity

    ■
    Consolidated Statements of Cash Flows

    ■
    Notes to the Consolidated Financial Statements

F-1

REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To
the Board of Directors and

Shareholders
of Premium Resources Ltd.

Opinion
on the Consolidated Financial Statements

We
have audited the accompanying consolidated balance sheets of Premium Resources Ltd. (Formerly Premium Nickel