Company: PRMLF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022391
Chunk: 108

Company: NexMetals Mining Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 8
Chunk 108
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 Carlo model used to value the Settlement Warrants was based on the following assumptions:

SCHEDULE
OF FAIR VALUE OF SETTLEMENT WARRANTS

    Settlement Warrants 
  
    Expected dividend yield 
     0%
  
    Share price 
    $5.00 
  
    Expected share price volatility 
     81.8%
  
    Risk free interest rate 
     2.57%
  
    Expected life of warrant 
     3 years 

The
volatility was determined by calculating the historical volatility of the Company’s share price over a 3-year period using daily
closing prices. The formula used to compute historical volatility is the standard deviation of the logarithmic returns. The same implied
discount for lack of marketability for purposes of the Common Shares valuation was also applied to the share price for the Settlement
Warrants valuation.

In
connection with the March 2025 Financing, the Company issued: (i) 200,000 Common Shares to TriView Capital Ltd. (“TriView”)
for its services as finder; (ii) 450,000 Common Shares to Fiore Management and Advisory Corp. (“Fiore”) and 187,500
Common Shares to Bowering Projects Ltd. (“Bowering”) for certain advisory services; and (iii) 179,335 Common Shares
to a financial advisor for financial advisory services. The fair value of these shares was determined to be $5,179,586. In addition to
the Common Shares, the Company incurred various legal, listing and financing fees payable in cash totalling $2,371,203. Certain of these
fees were allocated between the non-brokered private placement (Note 11(a)) and Debt Conversion
transactions based on the value of the units issued under each transaction.

All
securities issued as part of the Debt Conversion are subject to a hold period, which expired July 19, 2025, with the exception of the
Common Shares issued to Fiore and Bowering which have a hold period expiring March 19, 2026.

The
following is a continuity of the Term Loan:

SCHEDULE
OF CONTINUITY OF TERM LOAN

    $ 
  
    Term Loan balance, December 31, 2023 
     17,956,423 
  
    Accrued interest 
     2,082,530 
  
    Accretion of warrant value and transaction costs 
     1,026,789 
  
    Interest paid