Company: PRMLF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001493152-25-011913
Chunk: 75

Company: NexMetals Mining Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 75
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to the Selebi APA and the Selkirk APA, the Company does not have contractual reclamation or closure obligations in respect of the Mines
up to the point of acquisition. However, there can be no assurance that this will not be challenged in the future by regulators or the
public, or that the counterparty to the Selebi APA and Selkirk APA will not fail to fulfill their closure obligations.

Moreover,
the Company may be required to incur significant costs in connection with reclamation activities for its mining sites, which may materially
exceed the provisions the Company has made for such reclamation and which are based on the Company’s internal estimates. These
estimates take into account any material changes to the Company’s supporting assumptions that occur when reviewed regularly by
management. Estimates are reviewed annually and are based on current regulatory requirements and disturbances since the date of acquisition
of the Mines. Significant changes in estimates of contamination, restoration standards and techniques may result in additional provisions.
In addition, the unknown nature of possible future additional regulatory requirements and the potential for additional reclamation activities
create further uncertainties related to future reclamation costs, which may have a material adverse effect on the Company’s financial
condition, liquidity or results of operations.

Inherent
risks and limitations of Internal Control Over Financial Reporting

The
Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements in accordance with generally accepted accounting principles. Similarly, the Company’s
disclosure controls and procedures are intended to ensure that material information required to be disclosed in reports filed with securities
regulators is appropriately recorded, processed, summarized, and reported within required timeframes. These controls also aim to ensure
that such information is communicated to management, including the Chief Executive Officer and Chief Financial Officer, to facilitate
timely decisions regarding required disclosures.

50

However,
due to inherent limitations, no control system can provide absolute assurance of achieving its objectives. As such, even well-designed
and effectively operated controls can only provide reasonable—not absolute—assurance regarding the reliability of financial
reporting. Furthermore, failure to maintain effective internal controls over financial reporting could result in the loss of investor
confidence in the reliability of the Company’s financial statements. The challenges involved in implementing appropriate internal
controls over financial reporting will likely increase with the Company’s redevelopment of the Mines and this will require it to
continue improving its internal controls over financial reporting. There can be no assurance that the Company will be able to