Financial Analysis

Note 13. Commitments and Contingencies: Other Commitments Paramount has an agreement to acquire 44 mining claims (Cryla Claims) covering 589 acres located immediately to the west of the proposed Grassy Mountain site from Cryla LLC. Paramount is obligated to make annual lease payments of $ 40,000 per year the first two years of the lease term and $ 60,000 per year thereafter with an option to purchase the Cryla Claims for $ 560,000 at any time. The term of the agreement is 25 years. In the event Paramount exercises its option to acquire the Cryla Claims, all annual payments shall be credited against a production royalty that will be based on a prevailing price of the metals produced from the Cryla Claims. The royalty rate ranges between 2 % and 4 % based on the daily price of gold. The agreement with Cryla can be terminated by Paramount at any time. Paramount made the annual lease payment of $ 60,000 as required by the agreement during the year ended June 30, 2025. The Cryla Claims are without known mineral reserves and there is no current exploratory work being performed. Paramount has an agreement with Nevada Select Royalty (Nevada Select) to purchase 100 % in the Frost Project, which consists of 40 mining claims located approximately 12 miles west of its Grassy Mountain Project. A total consideration of $ 250,000 payable to Nevada Select will be based on certain events over time. Upon signing the agreement, Paramount made a payment of $ 10,000 to Nevada Select. Nevada Selec …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 7. Debt $15,000,000 Secured Royalty Convertible Debenture Effective as of December 27, 2023, Paramount closed on a Secured Royalty Convertible Debenture (the Debenture) with Sprott Private Resource Streaming and Royalty (US Collector), LP (Sprott) for $ 15,000,000 . The Debenture bears an interest rate of 10 % per annum, which, at Paramounts discretion, will be payable in cash or shares of its common stock at a 7 % discount to the 10-day volume weighted average price (""VWAP"") from the scheduled date of payment of interest. The Debenture may be repaid in cash or is convertible into a gross revenue royalty (the Royalty"") of 4.75 % of the gold and silver produced from the proposed Grassy Mountain Gold Mine. The Debenture may be repaid in cash or through the issuance of the Royalty at the earlier of the commencement of commercial production or five years from the Debenture closing date. The conversion to the Royalty is at Sprott's sole discretion. Paramount may elect to repay the Debenture by providing 20 business day written notice, in cash only and in whole prior to its maturity at a price equal to the sum of the principal amount plus all accrued and unpaid interest plus a prepayment interest premium of equal to 36 months of interest less interest paid prior to the date of prepayment. Upon a sale of the Sleeper Gold Project, Sprott can elect to have a portion of the Debenture repaid with proceeds from the sale. In the event of default, the debenture will accrue interes …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 4. Fair Value Measurements Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization with the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820 are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 I …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 12. Income Taxes At June 30, 2025, the Company has net operating loss carry forwards of $ 38,200,235 (2024- $ 38,219,334 ) expiring between the years 2025 and 2038 which are available to reduce future taxable income. Tax losses incurred after June 30, 2018 of $ 45,427,872 (2024 - $ 35,736,884 ) may be carried forward indefinitely. The tax effects of the significant components within the Companys deferred tax asset (liability) at June 30, 2025 and 2024 are as follows: United States 2025 2024 Mineral properties $ 71,353 $ 308,364 Asset retirement obligation 481,691 476,760 Fixed assets ( 257 ) 752 Derivatives 276,686 185,163 Stock options 626,052 628,667 Other 2,100 2,100 Net operating losses 17,565,333 15,534,237 $ 19,022,958 $ 17,136,043 Valuation allowance ( 19,315,657 ) ( 17,409,493 ) Mineral properties $ ( 292,699 ) $ ( 273,450 ) Net deferred tax asset $ $ The income tax recovery differs from the amounts computed by applying statutory tax to pre-tax losses as a result of the following: 2025 2024 Loss before taxes $ ( 9,031,174 ) $ ( 8,023,038 ) US Statutory tax rate 21.00 % 21.00 % Expected income recovery ( 1,896,547 ) ( 1,684,838 ) Non-deductible items 482 1,099 Change in estimates 9,150 ( 67,181 ) Other items Change in tax rates Change in valuation allowance 1,906,164 1,784,327 Total income taxes 19,249 $ 33,407 Current tax expense Deferred tax expense 19,249 33,407 $ $ The potential tax benefits of net operating losses have not been recognized in these financial s …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280)Improvements to Reportable Segment Disclosures. The ASU requires that an entity disclose significant segment expenses impacting profit and loss that are regularly provided to the chief operating decision maker. The update is required to be applied retrospectively to prior periods presented, based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted ASU 2023-07 for fiscal year ended June 30, 2025. The adoption did not have an impact on the Company's consolidated financial position or results of operations but did result in expanded segment disclosures within the notes of the financial statements. …

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Note 11. Segmented Information The Companys reportable segments are comprised of operating units that have losses or assets exceeding 10% of the respective consolidated totals and are consistent with the Companys management reporting structure. At Paramount, management organizes its segments by material property to make operating decisions and assessing performance. The Company's properties include the Sleeper Gold Project and the Grassy Mountain Project. Additional operating expenses incurred by the Company are treated as corporate overhead. Interest expense incurred by the Company are included in corporate overhead and the CODM does not rely on allocating interest expense by reportable segment to assess performance of the segment. Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The chief operating decision-maker, who is responsible for allocating resources and assessing the performance of the operating segments, has been identified as the Chief Executive Officer . The tables below summarize the Company's segments: Year Ended June 30, 2025 Sleeper Gold Project and other Nevada based Projects Grassy Mountain Project and other Oregon based Projects Corporate Total Exploration and development $ 264,174 $ 2,339,283 $ $ 2,603,457 Reclamation 200,950 200,950 Land holding costs 569,748 173,371 743,119 Accretion 225,413 225,413 Corporate 3,182,580 3,182,580 Net Loss Before Other Expense $ 1,260,285 $ 2,5 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Note 6. Capital Stock Authorized Capital Authorized capital stock consists of 200,000,000 shares of Common Stock with par value of $ 0.01 per common share (2024 - 200,000,000 shares of Common Stock with par value $ 0.01 per common share). During the year-ended June 30, 2025, the Company issued 4,728,165 shares for net proceeds of $ 2,356,709 through its at-the-market offering and issued 3,845,273 shares for the payment of accrued interest (Note 7) with a fair value of $ 1,516,667 . The Company also issued 1,803,000 shares related to awards made under its equity compensation plans. During the year-ended June 30, 2024, the Company issued 6,379,754 shares for net proceeds of $ 1,923,120 through its at-the market offering and issued 3,142,803 shares for payment of interest accrued and owing (Note 5 and Note 7) with a fair value of $ 1,117,837 . The Company also issued 709,500 shares related to awards under its equity compensation plans. Stock Options, Restricted Stock Units and Stock Based Compensation Paramounts 2015 and 2016 Stock Incentive and Compensation Plans, which are stockholder-approved, permits the grant of stock options, restricted stock units and stock to its employees and directors for up to 5.5 million shares of common stock. Total stock-based compensation for the years-ended June 30, 2025 and 2024 were $ 589,730 and $ 331,095 , respectively. Total stock-based compensation for the year-ended June 30, 2025 consists of the aggregate of stock-based compensation recor …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 14. Subsequent Events The Company sold 2,146,561 shares under its at the market program for net proceeds of $ 1,901,968 between July 14, 2025 and September 23, 2025 . The Company also issued 2,941,176 prefunded warrants exercisable for shares of Common Stock for gross proceeds of $ 2,000,000 on August 22, 2025.

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