EX-99.2 3 exh_992.htm EXHIBIT 99.2

Exhibit 99.2

 

 

 

 

 

 

 

 

 

 

 

 

(An exploration company)

 

 

 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS

 

 

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

 

 

 

 

 

 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025

 

This Management’s Discussion and Analysis (the “MD&A”) for Fury Gold Mines Limited (“Fury Gold” or the “Company”) should be read in conjunction with the condensed interim consolidated financial statements of the Company and related notes thereto for the three and six months ended June 30, 2025. The condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting (“IAS 34”) of the IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the IFRS Interpretations Committee (“IFRIC”). All dollar amounts presented are expressed in thousands of Canadian dollars unless otherwise stated. Certain amounts presented in this MD&A have been rounded. The effective date of this MD&A is August 13, 2025.

 

 

 

Section 1: Forward-looking statements and risk factors 2
Section 2: Business Overview 4
Section 3: Q2 Highlights and subsequent events 4
Section 4: Projects overview 6
Section 5: Review of quarterly financial information 12
Section 6: Financial position, liquidity, and capital resources 15
Section 7: Financial risk summary 19
Section 8: Related party transactions and balances 20
Section 9: Critical accounting estimates and judgements 21
Section 10: Controls and procedures 21

 

 

 

Fury Gold Mines Limited 1
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

 

Section 1: Forward-looking statements and risk factors

 

1.1 Forward-looking statements

 

Certain statements made in this MD&A contain forward-looking information within the meaning of applicable Canadian and United States securities laws (“forward-looking statements”). These forward-looking statements are presented for the purpose of assisting the Company’s securityholders and prospective investors in understanding management’s views regarding those future outcomes and may not be appropriate for other purposes. When used in this MD&A, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Specific forward-looking statements in this MD&A include, but are not limited to: the Company’s exploration plans and objectives and the timing and costs of these plans; future capital expenditures and requirements, and sources and timing of additional financing; the timing, costs and success of the Company’s exploration activities, estimates of the Company’s mineral resources; the realization of mineral resource estimates; any objectives, expectations, intentions, plans, results, levels of activity, goals or achievements; capital expenditures; the Company’s plans for its marketable securities in Dolly Varden Silver Corporation and Sirios Resources Inc. and the realization of carrying values of these and any other securities held for resale. Additional factors include liabilities related to unused tax benefits or flow-through obligations; statements relating to the business, operations or prospects of the Company; and other events or conditions that may occur in the future.

 

The forward-looking statements contained in this MD&A represent the Company’s views only as of the date such statements were made and may change. Many assumptions are subject to risks and uncertainties, and so may prove to be incorrect, including the Company’s budget, including expected costs and the assumptions regarding market conditions and other factors upon which the Company has based its expenditure expectations; the Company’s ability to complete its planned exploration activities with its available working capital; the Company’s ability to raise additional capital to proceed with its exploration plans; the Company’s ability to obtain or renew the licences and permits necessary for exploration; the Company’s ability to obtain all necessary regulatory approvals, permits and licences for its planned exploration activities under governmental and other applicable regulatory regimes including the legally, mandated consultation process with affected First Nations; the Company’s ability to complete and successfully integrate acquisitions; the effects of climate change, extreme weather events, tariffs, water scarcity, and seismic events, and the effectiveness of strategies to deal with these issues; the Company’s expectations regarding the demand for, and supply and price of, precious metals; the Company’s ability to recruit and retain qualified personnel; the Company’s resource estimates, and the assumptions upon which they are based; the Company’s ability to comply with current and future environmental, safety and other regulatory requirements.

 

The foregoing is not an exhaustive list of the risks and other factors that may affect any of the Company’s forward-looking statements. Readers should refer to the risks discussed herein and in the Company’s Annual Information Form (the “Annual Information Form”) for the year ended December 31, 2024, subsequent disclosure filings with the Canadian Securities Administrators, the Company’s annual report on Form 20-F for the year ended December 31, 2024 filed with the United States Securities and Exchange Commission (the “SEC”) (the “2024 Form 20-F Annual Report”), and subsequent disclosure filings with the SEC, available on SEDAR+ at www.sedarplus.com and with the SEC at www.sec.gov, as applicable.

 

The Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.

 

Readers are cautioned not to place heavy reliance on forward looking statements.

 

Cautionary Note to United States Investors concerning Estimates of Measured, Indicated, and Inferred Resource Estimates:

 

This MD&A uses the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource”, which are Canadian mining terms as defined in, and required to be disclosed in accordance with, National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), which references the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) – CIM Definition Standards on mineral resources and mineral reserves (“CIM Definition Standards”), adopted by the CIM Council, as amended. Mining disclosure under U.S. securities law was previously required to comply with SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Exchange Act of 1934, as amended. The SEC has adopted rules to replace SEC Industry Guide 7 with new mining disclosure rules under sub-part 1300 of Regulation S-K of the U.S. Securities Act (“Regulation S-K 1300”) which became mandatory for U.S. reporting companies beginning with the first fiscal year commencing on or after January 1, 2021. Under Regulation S-K 1300, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”. In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to international standards. Readers are cautioned that despite efforts to harmonize U.S. mining disclosure rules with NI 43-101 and other international requirements, there are differences between the terms and definitions used in Regulation S-K 1300 and mining terms defined by CIM and used in NI 43 101, and there is no assurance that any mineral reserves or mineral resources that an owner or operator may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the owner or operator prepared the reserve or resource estimates under the standards of Regulation S-K 1300.

 

Fury Gold Mines Limited 2
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

As a “foreign private issuer” under United States securities laws, the Company was previously (until year-ended December 31, 2023) eligible to file its annual report on Form 40-F with the SEC pursuant to the multi-jurisdictional disclosure system. Consequently, the Company was not required to provide disclosure on its mineral properties under US Regulation S-K 1300 but rather provided disclosure under Canadian NI 43-101 and the Canadian Institute of Mining and Metallurgy (CIM) Standards. The Company has lost its eligibility to file its annual report on Form 40-F using Canadian standards due to the non-affiliate market capitalization of its public share float having a market value less than US$75 million from and after the year ended December 31, 2023. Consequently, any Form 20-F Annual Reports filed by the Company with the SEC will include disclosure on the Company’s material properties in accordance with the requirements of Regulation S-K 1300 which as noted above may materially differ from the requirements of NI 43-101 and the CIM Definition Standards.

 

There is no assurance any mineral resources that the Company may report as “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43- 101 would be the same had the Company prepared the resource estimates under the standards adopted under the Regulation S-K 1300. United States investors are also cautioned that while the SEC will now recognize “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater amount of uncertainty as to their existence and feasibility than mineralization that has been characterized as reserves.

 

The Company has no mineral reserves which require that the estimated resources be demonstrated to be economic in at least a pre-feasibility study. Accordingly, investors are cautioned not to assume that any “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” that the Company reports are or will be economically or legally mineable. Although in Canada, “inferred mineral resources” are subject to an expectation that there must be a reasonable probability of upgrading a majority of an inferred resource into a measured or indicated category, inferred resources have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, United States investors are also cautioned not to assume that all or any part of the “inferred mineral resources” exist. In accordance with Canadian securities laws, estimates of “inferred mineral resources” cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101.

 

Accordingly, information contained in this MD&A describing the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

 

See the heading “Resource Category (Classification) Definitions” in the 2024 Form 20-F Annual Report for a more detailed description of certain of the mining terms used in this MD&A.

 

Fury Gold Mines Limited 3
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

1.2       Qualified persons and technical disclosures

 

Bryan Atkinson. P.Geol., Senior Vice President, Exploration, and Valerie Doyon, P.Geo., Senior Project Geologist of the Company are each a “qualified person” or “QP” under and for the purposes of NI 43-101 with respect to the technical disclosures in this MD&A in respect to the Committee Bay and the Quebec projects respectively.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fury Gold Mines Limited 4
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

 

Section 2: Business Overview

 

Fury Gold is a Canadian-focused gold exploration company strategically positioned in two prolific mining regions: the Eeyou Istchee James Bay Region of Quebec and the Kitikmeot Region in Nunavut. As a result of its recent April 28, 2025) acquisition of Quebec Precious Minerals Corp, the Company now has a portfolio of additional precious, critical and rare earth mineral projects (described below) which are not yet considered to be material. The Company’s vision is to deliver shareholder value by growing our multi-million-ounce gold portfolio and other mineral projects through additional significant discoveries in Canada.

 

The Company was incorporated on June 9, 2008, under the Business Corporations Act (British Columbia) and is listed on the Toronto Stock Exchange and the NYSE-American, with its common shares trading under the symbol FURY. The Company’s registered and records office is located at 1055 West Georgia Street, Suite 1500, Vancouver, British Columbia, V6E 4N7, and its mailing address is 401 Bay Street, 16th Floor, Toronto, Ontario, M5H 2Y4.

 

At June 30, 2025, the Company had three material mineral projects (excluding the projects recently acquired in the Quebec Precious Minerals Corp acquisition): Committee Bay in Nunavut, and Eau Claire and Éléonore South in Quebec, which the Company now owned 100% after acquiring the 49.978% interest previously held by Newmont Corporation (“Newmont”) in February 2024. Additionally, the Company held a 13.51% common share interest in Dolly Varden Silver Corporation (“Dolly Varden”) at June 30, 2025, which owns the Kitsault project in British Columbia. The Company’s equity interest in Dolly Varden is accounted for as an investment in associate meaning cost less a share of its losses (or plus its income, if any) as well as any implied gains or losses from equity dilution discussed below. Accordingly, their carrying value on the financial statements does not reflect the market value of these securities. Conversely, Dolly Varden investment would be written down if the market value of these shares is determined to be persistently lower than its carrying value.

 

The Company is a junior resource exploration issuer and does not have material revenues. The CEO, who is the chief operating decision maker (“CODM”), reviews the operating segments of the Company, and has determined that there are two reportable segments. The Company focus on the acquisition, exploration, and development of mineral resource properties within Quebec and Nunavut, as well as having an administrative and corporate segment. Its business success must be measured primarily by the success of its exploration programs in establishing that the Company’s mineral properties contain potential commercial deposits of precious metals.

 

Section 3: Q2 Highlights and subsequent events

 

3.1 Operational highlights

 

§On August 12, 2025 the Company announced the initial results from the inaugural drill campaign at the Sakami gold project. Drill hole 25SK-001, the first of six holes drilled to date, was designed to test the down plunge extension of gold mineralization intercepted in historical drilling and intercepted five distinct zones of gold mineralization across a 140-metre (m) drilled length; 4.7 m of 2.72 g/t gold; 0.5 m of 10.2 g/t gold; 1.5 m of 5.17 g/t gold and; 11.8 m of 1.28 g/t gold and; 41.5 m of 1.23 g/t gold. Within the two broader intercepts of 11.8 m and 41.5 m, hosted within intense pervasive silicification, there is a high-grade core that includes intercepts of up to 7 m of 3.15 g/t gold. The results from the remaining six completed drill holes and one current drill hole are pending.

 

§On June 16, 2025, the Company announced that it has finalized drill targeting for the Sakami Gold Project. The first phase of drilling will commence in late June and comprise approximately 3,000 – 5,000 metres with three priorities:

 

oDiscovery along a 23km long gold bearing structural corridor at the Juliette target;

 

oConfirm historical mineralized intercepts at the La Pointe and La Pointe Extension targets;

 

oStep out drilling along strike and down plunge of a high-grade corridor identified at La Pointe Extension.

 

§On June 3, 2025, the Company announced its 2025 exploration plans at Committee Bay, which will commence in early July and comprise 7 – 10 diamond drill holes totaling approximately 5,000 metres. The drilling will have three primary goals:

 

Fury Gold Mines Limited 5
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

oExpansion of the Three Bluffs Shear Zone;

 

oTesting regional shear zones along the Southern contact of the 8km long Raven shear zone;

 

oTesting regional shear zones at Burro West.

 

3.2 Corporate highlights

 

§On June 27, 2025, the Company announced the voting results from its Annual General Meeting (“Meeting”) of Shareholders held on June 26, 2025. The Company confirmed that each director nominee listed in the Company’s management information circular dated May 12, 2025, in connection with the Meeting were re-elected as directors of the Company and that Deloitte LLP was re-appointed as the Company’s auditor.

 

§On June 20, 2025, the Company closed $3.08 Million financing (the “June 2025 Offering”) previously announced on June 5, 2025. The Company issued 3,999,701 common shares of the Company that qualify as “flow-through shares” as defined under subsection 66(15) of the Income Tax Act (Canada) (“FT Shares”) at a price of C$0.77 per FT Share.

 

§In connection with the June 2025 Offering, Agnico Eagle Mines Limited (“Agnico Eagle”) exercised its existing participation right and acquired 440,000 common shares of the Company at a price of C$0.67 per Share for gross proceeds of $295 (“AEM June Private Placement”). The Common Shares acquired in AEM June Private Placement do not qualify as “flow-through shares”. AEM June Private Placement, together with the June 2025 Offering, resulted in the Company raising aggregate gross proceeds of $3,375. The proceeds from AEM June Private Placement will be used to advance the Company’s Committee Bay exploration program.

 

§On May 27, 2025, the Company entered into a subscription agreement with Agnico Eagle pursuant to which Agnico Eagle has acquired, on a non-brokered private placement basis, 6,728,000 units in the capital of the Company (“Units”) at C$0.64 per Unit for gross proceeds of $4,306 (the “AEM Private Placement”). Each Unit consists of one common share of Fury and one common share purchase warrant. Each common share purchase warrant is exercisable to purchase one Share at C$0.80 for a 36-month period from the date of issuance on May 26, 2025, subject to accelerated expiry after 24 months if the market price of the Shares closes above C$0.80 for twenty consecutive trading days. This investment increases Agnico Eagle’s basic ownership to 6.3% of Fury’s issued shares and its defined “ownership interest” to 9.9% calculated on a “partially diluted” basis. $3.9 Million of this investment is allocated for exploration under the Company’s 2025 exploration program at the Committee Bay project and the remainder is available for other projects and general corporate purposes.

 

§On May 8, 2025, the Company sold 1,000,000 common shares of Dolly Varden for net proceeds of $3,625.

 

§On April 28, 2025, the Company completed the acquisition of Quebec Precious Metals Corporation (“QPM”) originally announced on February 26, 2025. Fury acquired all of the issued and outstanding common shares of QPM by issuing an aggregate of 8,394,045 Fury shares on close, valued at $4.53 Million. The Company thereby acquired three prospective projects (one precious metal, one critical mineral and one rare earths) which are not individually material to Fury at this time. The QPM acquisition is not a significant acquisition in accordance with National Instrument 51-102 and therefore, no business acquisition report will be filed.

 

 

Fury Gold Mines Limited 6
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Section 4: Projects overview

 

 

 

4.1 Indigenous community relations and environmental

 

The pursuit of environmentally sound and socially responsible mineral development guides all of Fury Gold’s activities as the Company understands the broad societal benefits that responsible mining can bring, as well as the risks that must be managed through the implementation of sustainable development practices. The Company strives to maintain the highest standards of environmental protection and community engagement at all its projects.

 

The Company considers sustainability to include the pursuit of four mutually reinforcing pillars: environmental and cultural heritage protection; social and community development; economic growth and opportunity; and cultural intelligence development for all employees. The Company assesses the environmental, social, and financial benefits and risks of all business decisions and believes this commitment to sustainability generates value and benefits for local communities and shareholders alike.

 

The Company’s approach to Indigenous and stakeholder engagement provides opportunities and benefits through:

§the provision of jobs and training programs
§contracting opportunities
§capacity funding for Indigenous engagement
§sponsorship of community events
§supporting professional development opportunities, building cultural and community intelligence capacity.

 

The Company places a priority on creating mutually beneficial, long-term relationships with the communities in which it operates. Engagement goals include providing First Nations governments, communities, and residents with corporate and project-related information, including details of work programs, collaborative opportunities, and other activities being undertaken in the field.

 

4.2 Quebec

 

Fury Gold holds 100% interests in the Eau Claire project as well as interests in ten other properties covering approximately 157,000 hectares predominantly within the Eeyou Istchee James Bay region of Quebec. This now includes a 100% interest in the Éléonore South Project. Through the acquisition of Quebec Precious Metals Corporation on April 28, 2025, the company added 100% interest in three projects: Sakami, Elmer East and Cheechoo – Eleonore Trend, and a 68% interest in the Heavy Rare Earth Elements (HREE) Kipawa project (the remaining 32% is held by Investissement Quebec). The Eastmain Mine project along with the Ruby Hill East and Ruby Hill West projects are under option to Benz Mining Corp. (“Benz Mining”) whereby Benz Mining has earned a 75% interest in those properties, by completing certain option payments and exploration expenditures, with a further option to increase Benz Mining’s holding to 100% in the Eastmain Mine property upon receipt of a final milestone payment. Benz Mining currently acts as operator and is current with regards to all option payment and expenditure obligations.

 

Fury Gold Mines Limited 7
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

4.2.1       Eau Claire

 

The Eau Claire project is located immediately north of the Paix Des Braves reservoir, 10km northeast of Hydro Quebec’s EM-1 hydroelectric power facility, 80km north of the town of Nemaska, approximately 320km northeast of the town of Matagami, and 800km north of Montreal. This property consists of map-designated claims totaling approximately 23,000 hectares. These claims are held 100% by Fury Gold and are in good standing. Permits are obtained on a campaign basis for all surface exploration, particularly trenching and drilling, undertaken on the property.

 

The Eau Claire project is underlain by typical Archean greenstone assemblages of the Eastmain Greenstone Belt, which are composed of volcanic rocks of basaltic to rhyolitic composition and related clastic and chemical sedimentary rocks. These rocks have been intruded by an assemblage of mafic to felsic sills, stocks, and dykes. Metamorphism ranges from upper greenschist to amphibolite facies in the greenstone assemblages, while higher-grade facies, up to granulite level, typically characterize the Opinaca sub-province. Archean-aged deformation affects all rocks on the property. Near the Eau Claire deposit, the volcano-sedimentary assemblage has been folded, forming a closed antiform plunging gently to the west. Regional rock foliation and lithology are generally east-west in strike with moderate to sub-vertical southerly dips in the vicinity of the Eau Claire gold deposit.

 

On May 14, 2024, the Company announced that it had received the results of an updated mineral resource estimate for Eau Claire which resulted in the addition of 307koz Au in the Measured and Indicated category (a 36.0% increase) and 223koz Au in the Inferred category (a 44.6% increase). The Eau Claire project now contains a combined mineral resource of 1.16Moz gold (Au) at a grade of 5.64 g/t Au in the Measured and Indicated category as well as an additional 723koz gold at a grade of 4.13 g/t Au in the Inferred Category.

 

Combined Mineral Resource Estimate for the Eau Claire Project:

 

 

In 2024, the Company completed approximately 3,871 m of Diamond Drilling at the project targeting biogeochemical anomalies within the Percival – Serendipity trend 14km to the east of Eau Claire. The 2024 drill program resulted in the discovery of high-grade gold mineralization at Serendipity with two intercepts: 3m of 12.16 g/t gold and 1m of 5.27 g/t gold separated by over 2 km of prospective stratigraphy. The 2024 drilling cost $1,800.

 

Percival to Serendipity trend:

 

The Serendipity Prospect is situated 16 km northeast of the Eau Claire Deposit and 6.5 km north northeast of the Percival Deposit along the Hashimoto Deformation Zone, which is related to the Cannard Deformation Zone, one of the primary controls on gold mineralization within the region. The planned 2024 drilling tested five robust distinct geochemical targets up to 150x background values proximal to the regional scale Hashimoto Deformation Zone within prospective folded stratigraphy across approximately 2 km of strike length. Limited historical drilling near Serendipity intercepted 7.9 m of 1.23 g/t gold; 12.1 m of 1.38 g/t gold and 1.5 m of 4.27 g/t gold.

 

Fury Gold Mines Limited 8
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Fury’s technical team has demonstrated the effectiveness of drilling biogeochemical anomalies in covered terrain within our project areas and continues to build a better understanding of the combination of pathfinder elements and structural controls on the gold mineralization along the Percival to Serendipity trend. Broad low-grade gold mineralization occurs along well-defined structural splays sub-parallel to the regional Cannard and Hashimoto Deformation Zones. Certain elemental associations, most notably Arsenic, Bismuth, and Tungsten, are proving to be important pathfinders for gold mineralization. Higher-grade gold within the broader corridor is controlled by secondary shearing and is identified by the high degree of silicification and alteration. The proximity of the main Cannard and Hashimoto Deformation Zones varies from one target to the other and Fury believes the varying degrees of deformation are an important control on both gold mineralization and the potential preservation of a sizeable, mineralized body.

 

The Company expects to incur approximately $35 annually in project maintenance costs, including certain mineral claims payments, in order to keep the properties in good standing in 2025. The Company is currently finalizing exploration plans for the Eau Claire project for the fall of 2025.

 

Eau Claire resource estimate technical report

 

The Eau Claire resource estimation was completed in a technical report authored by Maxime Dupere, Geologist, Ben Eggers, Geologist, and Sarah Dean, Geologist, all with SGS Geological Services (“Mineral Resource Estimate Update for the Eau Claire Project, Eeyou Istchee James Bay Region of Quebec, Canada” which is dated June 25, 2024, has an effective date of May 10, 2024, and is filed on SEDAR+).

 

4.2.2        Éléonore South

 

On March 1, 2024, Fury Gold completed the purchase of Newmont Corporation’s 49.978% interest in the Éléonore South project for $3,000 consolidating Fury’s interest in the project to 100%.

 

The Éléonore South property is strategically located in an area of prolific gold mineralization within the Eeyou Istchee James Bay gold camp and is locally defined by Newmont’s Éléonore mine and Sirios Resources’ Cheechoo deposit. Exploration over the past 13 years has largely been focused on the extension of the Cheechoo deposit mineralization within the portion of the Cheechoo Tonalite on the Property. Approximately 27,000m of drilling in 172 drill holes, covering only a small proportion of the property at the Moni and JT prospects has been completed. Notable drill intercepts include 53.25m of 4.22 g/t gold (Au); 6.0m of 49.50 g/t Au including 1.0m of 294 g/t Au and 23.8m of 3.08 g/t Au including 1.5m of 27.80 g/t Au.

 

On March 5, 2024, the Company announced that it has identified a robust biogeochemical gold anomaly within the same sedimentary rock package that hosts Newmont’s Éléonore Mine at the Éléonore South project. The orientation level biogeochemical sampling survey was designed to target an interpreted fold nose within the Low Formation sediments in an area where conventional soil or till sampling was not possible due to the ground conditions. The targeted area exhibited similar geological, geophysical, and structural characteristics to those present at the nearby Éléonore Mine. The identified anomaly is up to 200x the background value in gold and outlines the folded sedimentary package.

 

On March 20, 2024, Fury announced its intention to commence diamond core drilling operations at the Éléonore South gold project. The diamond drilling program commenced in late March and will comprise approximately 2,000 metres (m) focussed on the Moni showing trend where previous drilling intercepted up to; 53.25 m of 4.22 g/t gold (Au); 6.0 m of 49.50 g/t Au including 1.0 m of 294 g/t Au and 23.8 m of 3.08 g/t Au including 1.5 m of 27.80 g/t Au, several of which remain open.

 

On June 4, 2024, Fury announced the results from its Spring 2024 diamond core drilling program at the Éléonore South gold project. The Spring 2024 diamond drilling program comprised 2,331.4 m completed in seven diamond drill holes testing 2.3 km of strike along the JT – Moni Trend. The drilling targeted 100 to 125 m downdip extensions from historical drilling. All seven drill holes intercepted anomalous gold mineralization including 137.5 m of 0.44 g/t gold and 18.7 m of 0.97 g/t from drill hole 24ES-161, 115.5 m of 0.50 g/t gold from drill hole 24ES-162 and, 28.0 m of 0.47 g/t gold from drill hole 24ES-160. The limited drilling completed confirms that the gold mineralization hosted within the Cheechoo tonalite remains open.

 

Fury Gold Mines Limited 9
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

On October 7, 2024, the Company announced the discovery of high-grade lithium outcrop on the western claim block of its 100% owned Éléonore South project in the Eeyou Istchee Territory in the James Bay region of Quebec. The outcrop sampling program targeted the historical Fliszar showing lepidolite bearing pegmatite as well as new rock exposures over an area of approximately 1000 x 500 metres resulting in the collection of 34 samples. Seven samples returned high-grade values above 1.75% lithium oxide (Li2O) with a peak value of 4.67% Li2O. The Company’s focus remains on the gold prospectivity of the Éléonore South project; however, the announced lithium results provide additional exploration targets as the overall project is advanced.

 

On November 12, 2024, the Company announced the finalization of drill targeting at the Éléonore South gold project in the Eeyou Istchee Territory in the James Bay Region of Quebec. Drilling will target robust geochemical gold anomalies within the same sedimentary rock package that hosts Newmont’s Éléonore Mine. The completed biogeochemical sampling survey covered an interpreted fold nose within the Low Formation sediments where an orientation level study identified a large-scale gold anomaly in a similar geological, geophysical, and structural setting to that of the nearby Éléonore Mine. Six priority drill targets across over 3 kilometres (km) of prospective folded sedimentary stratigraphy have been identified. These six targets encompass multi point gold anomalies above the 90th percentile of the data and correlate with moderate pathfinder elemental anomalies, most notably arsenic which is associated with gold mineralization at the Éléonore Mine. The Company has mobilized crews during February 2025 for an initial fully funded 3,000 – 5,000 metre diamond drilling programs.

 

On February 3, 2025, the Company announced the commencement of a diamond drilling program on the greenfield exploration Éléonore South gold project located in the Eeyou Istchee Territory in the James Bay region of Northern Quebec. Drilling will target a combination of geological, geophysical, and geochemical gold anomalies within the same sedimentary rock package that hosts the Éléonore Mine. The fully funded first phase drilling campaign will comprise approximately 4,000 – 6,000 metres targeting an interpreted fold nose within the Low Formation sediments. Within the prospective folded stratigraphy are six undrilled priority targets spanning over 3 km of strike length that have been identified through a combination of biogeochemical sampling and interpretation of magnetics and electromagnetics survey data. The first phase of drilling will be focused within a northwest-southeast structural corridor where a strong correlation between anomalous gold, stratigraphy, and structure has been identified. The drill targets occur in a structurally complex setting with little to no outcrop exposure and the targeting model will evolve with each hole drilled. The Company plans to complete approximately 15 of the 77 permitted drill holes as part of the first phase of drilling and will guide additional drilling based on the results and observations from this phase.

 

On June 16, 2025, the Company announced the results of the Spring 2025 diamond drilling program. The first phase of drilling targeted axial planar structures within the core of a fold within the prospective Low Formation sediments. The program comprised 12 diamond drill holes totaling approximately 4,930 m of drilling within a 2x3 km target area. Four of the twelve drill holes intercepted low-grade gold mineralization across widths of up to 5 m with up to five zones in a single drill hole (25ES-170). The low-grade gold mineralization intercepted lies within an east-west, steeply southerly dipping structural corridor with quartz veining and associated strong, broad zones of carbonate + silica + tourmaline +/- diopside alteration. The structural corridor is interpreted to be an axial planar feature related to broad regional scale folding within the favourable Low Formation sedimentary package. Gold is associated with bismuth and tellurium within altered bedded wackes and argillites of the Low Formation.

 

The first phase of drilling did not intercept arsenopyrite, which is a primary indicator of gold mineralization at the Éléonore Mine. Moderate arsenic anomalism was used in the targeting of the initial drilling in order to filter out the high background arsenic in the regional sedimentary package. Future drilling will target moderate to high arsenic anomalism with associated gold anomalism within the identified structural corridor in order to filter out the right concentration of arsenic associated with mineralization and not primary arsenic associated with lithology.

 

In addition to the Éléonore style biogeochemical targets, several gold in-till anomalies remain undrilled throughout the project. These gold in-till anomalies have similar geological and geochemical characteristics to the Cheechoo style of mineralization.

 

Fury Gold Mines Limited 10
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

The Company expects to incur approximately $35 annually in project maintenance costs, including certain mineral claims payments, in order to keep the properties in good standing in 2025. No additional work is planned for 2025. The Company is reviewing targets and priorities for 2026.

 

4.2.3        Sakami

 

The winter road accessible Sakami project covers approximately 14,250 hectares (ha), 30 km to the east of the paved Billy Diamond Highway. The Project straddles the prospective structural corridor marking the contact between the Opinaca and La Grande Geological subprovinces, where gold mineralization has been identified across over 23 km. Gold mineralization is located at the base of a sulphide rich horizon located along and proximal to regional-scale shearing, marking the contact between the two geological subprovinces.

 

Gold mineralization has been intercepted across widths of up to 75 m and to a depth of up to 500 m. The identified gold mineralization at both La Pointe and La Pointe Extension remains open to depth and along strike. Further south along the same gold-bearing structure lies an intriguing undrilled coincident gold in soil geochemical anomalies and Induce Polarization (IP) geophysical chargeability anomaly with similar signature to the La Pointe and La Pointe Extension targets.

 

On August 12, 2025, the Company announced the results from the first drill hole of the 2025 campaign at Sakami. Drill hole 25SK-001 was designed to test the down plunge extension of gold mineralization intercepted in historical drilling. The drill hole intercepted five distinct zones of gold mineralization across a 140-metre (m) drilled length; 4.7 m of 2.72 g/t gold; 0.5 m of 10.2 g/t gold; 1.5 m of 5.17 g/t gold and; 11.8 m of 1.28 g/t gold and; 41.5 m of 1.23 g/t gold. The key takeaways from 25SK-001 are;

 

·Confirmed continuity of mineralization at the La Pointe Extension prospect

 

·Multiple zones of +1.2 g/t gold mineralization intercepted

 

·Identification of high-grade gold core, which appears to strengthen down plunge

 

·Wide zones of intense silicification are indicative of a strong mineralization system with potential for significant scale along the 23-kilometre (km) long targeted structure

 

·Results pending from an additional six completed drill holes

 

On June 16, 2025, the Company announced the finalization of drill targets at Sakami. The first phase drilling campaign commenced in late June 2025 and will be comprise of approximately 3,000 – 5,000 metres, with three priorities;

 

§Discovery along a 23-km long gold-bearing structural corridor at the Juliette target;

 

§Confirm historical mineralized intercepts at the La Pointe and La Pointe Extension targets;

 

§Step out drilling along strike and down plunge of a high-grade corridor identified at La Pointe Extension.

 

Historical drilling at Sakami has intercepted gold mineralization across widths of up to 75 m and to a depth of up to 500 m below surface with intercepts of 7.79 g/t gold (Au) over 3.0 m from drill hole PT21-182; 8.70 g/t Au over 7.0 m from drill hole PT21-187; 4.28 g/t Au over 4.5 m from drill hole PT17-102 and 3.89 g/t Au over 14.90 m from drill hole PT18-116.

 

The 2025 Diamond Drilling campaign is anticipated to cost $1,700.

 

The Company expects to incur approximately $22 annually in project maintenance costs, including certain mineral claims payments, in order to keep the properties in good standing in 2025.

 

4.2.4        Elmer East

 

The Elmer East property covers approximately 45,735 ha and is easily accessible from the paved Billy Diamond highway. The project is located approximately 60 km north of the “km 381” rest stop where accommodations, fuel catering and power are available. The property is host to an undrilled 4.2 km long east–west oriented gold and base metal bearing structural trends known as the Lloyd showing where grab samples have returned results of up to 68.10 g/t gold, 7.99% Zinc and 7,660 ppm Copper.

 

Fury Gold Mines Limited 11
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Spodumene bearing pegmatites have been identified throughout the QPM land package with a recently completed drilling campaign at the Ninaaskumuwin project where +20 m spodumene bearing pegmatites with vertical continuity of up to 150 m were intercepted in drilling late 2024.

 

On July 9, 2025, the Company announced the results of the 2024 diamond drilling campaign targeting spodumene bearing pegmatites at Elmer East. The program comprised 825 m of diamond drilling in 5 drill holes. The drilling targeted a spodumene-bearing pegmatite outcrop, which returned surface samples of up to 3.92% Li2O. Highlights from the drill campaign include 32.35 m of 1.16% Li2O from EE24-003 and 22.48 m of 1.19% Li2O from EE24-002. Drilling confirmed the vertical continuity of lithium mineralization from surface down to 150 m. The lithium mineralized spodumene-bearing pegmatite intercepted remains open at depth and along strike. This new lithium discovery sits approximately 50 km north of Rio Tinto plc’s Galaxy Lithium project, acquired in March 2025 as part of the broader acquisition of Arcadium Lithium plc for US$ 6.7 billion.

 

On July 22, 2025, the Company announced the results from metallurgical test work completed on the lithium mineralized pegmatite intercepted in the 2024 drill campaign. The objective of the metallurgical test work was to characterize the mineralogy and metallurgical properties of the spodumene-bearing pegmatite intercepted in drilling. Results from the preliminary test work indicate that the Ninaaskumuwin lithium mineralization is amenable to conventional lithium extraction techniques with Heavy Liquid Separation resulting in recovery of 62.2% Lithium and a concentrate grade of 5.59% Li2O from a single composite sample. Results from the test work indicate:

 

§Samples analysed contain up to 42% spodumene;

 

§Spodumene is the sole lithium-bearing mineral identified;

 

§The pegmatite intercepted is free of impurities indicating that lithium concentrates suitable for lithium carbonate and lithium hydroxide battery grade products could possibly be produced;

 

§The Ninaaskumuwin pegmatite is a highly fractionated and fertile Lithium Cesium and Tantalum (LCT) pegmatite;

 

§Grades of the 85 samples analysed range from 0.02% to 3.71% Li2O and 0.36% to 6.30 % Fe2O3; and

 

§Recoveries of 62.2% Li and concentrate grade of 5.59% Li2O received from a single composite.

 

The Company expects to incur approximately $64 annually in project maintenance costs, including certain mineral claims payments, in order to keep the properties in good standing in 2025. No work is currently planned for 2025.

 

4.2.5        Kipawa

 

The Heavy Rare Earth Elements (HREE) Kipawa project (68% owned through the Company’s subsidiary and 32% owned by Investissement Québec), 50 km east of Temiscaming in southwestern Quebec, is host to a historical 2013 Proven and Probable reserves of 19.8 million tonnes grading 0.411% total rare earth oxides (TREO). The road accessible project covers an area of 4,300 hectares with good access to local infrastructure.

 

The above noted reserves estimation with an effective date of September 4, 2013 was completed for Matamec Exploration Inc. by Roche Ltd, Genivar, Golder Associates and SGS Canada Geostat (Feasibility Study for the Kipawa Project, Temiscamingue Area, Quebec, Canada - Saucier et. al., 2013). The 2013 estimate was based on 293 drill holes totaling 24,571m of drilling and 13 trenches totalling 631m. The 2013 historical resource and reserve estimate used a block model method constrained by wireframe grade-shell models, with ordinary kriging (OK) weighting. Block sizes of 10x5x5m were estimated. Measured and Indicated resources required drill grid spacing of 25m and 50m respectively with mineralized material 30 m outside of the drill grids being categorized as Inferred. Using a bulk density of 2.89t/m3 and a 0.2% TREO cut-off the 2013 historical resource estimate totalled 10.4Mt at 0.46% TREO in the Measured category, 13.4Mt at 0.36% TREO in the Indicated category and 3.3Mt at 0.31% TREO in the inferred category. Mineral Reserves were estimated using a bulk density of 2.89 t/m3 and a cut-off value of $48.96/ tonne with 5% dilution and a mining recovery of 95.2% resulted in a historical reserve estimate of 10.2Mt at 0.44% TREO in the Proven category and 9.5Mt at 0.38% TREO in the Probable category

 

The historical resource and reserve estimates discussed above have not been sufficiently reviewed by the Company to be deemed a current mineral resource or mineral reserve. Fury does not treat this historical resource and reserve estimate as current. There are no current mineral reserve or mineral resource estimates for the Kipawa Project.

 

Fury Gold Mines Limited 12
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

The Company expects to incur approximately $3 annually in project maintenance costs, including certain mineral claims payments, in order to keep the properties in good standing in 2025. The Company are currently reviewing the project and engaging with the community.

 

4.3 Nunavut

 

Committee Bay and Gibson MacQuoid Projects

 

The Committee Bay project comprises approximately 250,000 hectares situated along the Committee Bay Greenstone Belt located 180km northeast of the Meadowbank mine operated by Agnico Eagle Mines Limited. The Committee Bay belt comprises one of a number of Archean-aged greenstone belts occurring within the larger Western Churchill province of northeastern Canada. The Committee Bay project is held 100% by the Company, subject to a 1% Net Smelter Return (“NSR”), and an additional 1.5% NSR payable on only 7,596 hectares which may be purchased within two years of the commencement of commercial production for $2,000 for each one-third (0.5%) of the NSR.

 

On October 24, 2024, the Company announced the results from the summer exploration program at its 100% Committee Bay project in the Kitikmeot Region of Nunavut. The 2024 exploration program defined three drill ready shear zone hosted targets advanced through a combination of till sampling, rock sampling and geological mapping:

 

§Three Bluffs Shear, where drilling in 2021 intercepted 13.93 g/t Au over 10 metres;
§Raven Shear where 7 rock samples have averaged 16.12 g/t gold; and
§Burro West where a 300 by 300 m discrete >90th percentile gold in till anomaly has been defined with a peak value of 50 ppb gold.

 

On June 3, 2025, the Company announced the 2025 exploration plans for the Committee Bay project. The 2025 Committee Bay exploration program commenced in early July 2025 and will comprise 7 – 10 diamond drill holes totaling approximately 5,000 metres.

 

The 2025 drilling will have three primary goals;

 

§Expansion of the Three Bluffs Shear Zone target first identified in 2021 where drill hole 21TB152 intercepted three discrete zones of high-grade gold mineralization over a 30 m drill width, including 10.0 m of 13.93 g/t gold, 3.0 m of 18.67 g/t gold and 1.0 m of 23.2 g/t gold in a 120 m step-out from the defined mineral resource (see news release dated December 1, 2021);

 

§Testing regional shear zones along the southern contact of the 8 km-long Raven shear zone where samples of up to 32.90 g/t gold have been returned from an undrilled outcrop (see news release dated February 16, 2022);

 

§Testing regional shear zones at Burro West where a 300 by 300 m gold in till anomaly was identified in 2024.

 

On July 14, 2025, the Company announced that the 2025 diamond drilling campaign had commenced at the Committee Bay project. The 2025 program is anticipated to cost $4,200.

 

The Company expects to incur approximately $160 in annual mineral claims expenditures in 2025, in order to keep the property in good standing. Payments totalling $157 were made during the year ended December 31, 2024, in respect of these mineral claims.

 

Committee Bay resource estimate and technical report

 

Three Bluffs resource estimations were completed by APEX Geoscience Ltd. (“APEX”) (see the Technical Report on the Committee Bay Project, Nunavut Territory, Canada, dated September 11, 2023, and filed under Fury’s SEDAR+ profile). It supersedes prior all previous Committee Bay technical reports.

 

Fury Gold Mines Limited 13
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Section 5: Review of quarterly financial information

 

Three months ended:  Interest income   Net Loss(1)   Comprehensive loss(1)   Loss per share (C$/share) 
June 30, 2025  $35   $1,996   $1,998   $0.01 
March 31, 2025   44    2,991    2,993    0.02 
December 31, 2024   60    101,256    101,257    0.68 
September 30, 2024   75    2,673    2,673    0.02 
June 30, 2024   82    3,496    3,497    0.02 
March 31, 2024   82    714    715    0.01 
December 31, 2023   119    4,609    4,612    0.03 
September 30, 2023   162    6,650    6,649    0.05 

(1) Certain periods have been restated within this document to correct a misstatement which was identified in the fourth quarter of 2024. See section 5.2 below for details

 

5.1 Three months ended June 30, 2025, compared to three months ended June 30, 2024

 

During the three months ended June 30, 2025, the Company reported net loss of $1,996 and loss per share of C$0.01 compared to a net loss of $3,496 and loss per share of C$0.02 for the three months ended June 30, 2024. The significant drivers of the change in total net loss were as follows:

 

Operating expenses:

 

§Exploration and evaluation costs increased to $3,033 for the three months ended June 30, 2025 compared to $1,685 for the three months ended June 30, 2024. The higher exploration expense in the second quarter of 2025 was a result of the roughly 4,930 metres diamond drilling program at the Éléonore South property as well as preparation for the Summer programs at Sakami and Committee Bay whereas after the initial Elenore South drill program that commenced in March wrapped up, the program at Eau Claire only started during the last part of June;

 

§Fees, salaries and other employee benefits decreased to $512 for the three months ended June 30, 2025 compared to $623 for the three months ended June 30, 2024. The lower costs were a result of lower headcounts and the shift in compensation structure from share options to restrictive share units which resulted in lower expenses recorded from share-based compensation; and

 

§Legal and professional fees increased to $404 for the three months ended June 30, 2025 compared to $320 for the three months ended June 30, 2024. The higher costs in 2025 were primarily due to professional fees associated with the corporate acquisitions, valuation of mineral property interests and various financings during the quarter compared to the prior year.

 

Other (income) expenses, net:

 

§Amortization of flow-through share premium decreased to $174 for the three months ended June 30, 2025 compared to $448 for the three months ended June 30, 2024 was a result of the extinguishment of the flow-through liability in April 2025;

 

§Gain on investments of $3,454 for the three months ended June 30, 2025, was a result of the Company’s disposition of Dolly Varden shares during the period and a $2,044 deemed gain on dilution, whereas there was no comparable gain or loss for the three months ended June 30, 2024; and

 

Fury Gold Mines Limited 14
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

§Other income of $18 for the three months ended June 30, 2025 was from expenses eligible for government grant that were recognized in the period; whereas other income of $566 for the three months ended June 30, 2024 was from fuel resale.

 

5.2 Six months ended June 30, 2025, compared to six months ended June 30, 2024

 

During the six months ended June 30, 2025, the Company reported net loss of $4,970 and loss per share of C$0.03 compared to a net loss of $4,208 and loss per share of $0.03 for the six months ended June 30, 2024. The significant drivers of the change in total net loss were as follows:

 

Operating expenses:

 

§Exploration and evaluation costs increased to $5,194 for the six months ended June 30, 2025 compared to $2,476 for the six months ended June 30, 2024. The increase resulted from the 4,000 – 6,000 metres diamond drilling program at the Éléonore South property in the first quarter of 2025 and the program at Sakami which started in June, as well as the preparation for the program in Committee Bay that will start in July, whereas in 2024, work in the first quarter were limited to reviewing drill results and working on a resource update, with a few field days at the end of June;

 

§Legal and professional fees increased to $586 for the six months ended June 30, 2025 compared to $464 for the six months ended June 30, 2024. The higher costs in the current year are primarily a result of due diligent work performed for various financings, professional fees related to the valuation of mineral property interests and additional internal control framework review work; and

 

§Marketing and investor relations costs increased to $417 for the six months ended June 30, 2025 compared to $326 for the six months ended June 30, 2024. The increase in costs was due to strategic consultation services, offsetting by a reduction in marketing campaigns undertaken in the first six months of 2025 as compared to the first six months of 2024.

 

Other income, net:

 

§A net gain on disposal of investment of $1,408 and deemed dilution gain of $1,968 for the six months ended June 30, 2025 compared to a net gain on disposal of investment of $537 and deemed dilution gain of $220 for the six months ended June 30, 2024;

 

§Net loss from associates of $1,787 for the six months ended June 30, 2025 comprising the Company’s share of net losses of Dolly Varden and UMS compared to $1,956 for the six months ended June 30, 2024;

 

§Amortization of flow-through share premium increased to $947 for the six months ended June 30, 2025 compared to $729 for the six months ended June 30, 2024 was due increased exploration programs in 2025 compared to the same period in 2024; and

 

§Net gain on marketable securities of $347 for the six months ended June 30, 2025 compared to $612 for the six months ended June 30, 2024 was primarily due to in Q1 2024, there was a significant upturn in market value of certain securities within the lithium exploration space of which the Company had significant holdings, whereas in the current period there were small gains across multiple investments.

 

5.3 Revision of prior period unaudited interim financial statements

 

In preparing the consolidated financial statements for the year ended December 31, 2024, the Company identified an error in its previously issued unaudited consolidated quarterly financial statements for the periods ended March 31, 2024 and September 30, 2024. The carrying value of our investment in associates may also change as a result of effective increase or decrease in the investor’s ownership interest, with gains or losses arising as a result being recognized in profit or loss. In certain circumstances, our interest in the associates can change without us directly purchasing or selling shares, for example in the events of share issuances in which we do not participate. The error resulted in a misstatement of gain/loss on investments and investments in associates relating to the Company’s investment in Dolly Varden, specifically an understatement of dilution gain on the consolidated statement of (earnings) loss and comprehensive (income) loss, as well as an understatement of our investment in associate balance on the statement of financial position. The error had no cash impact on our financial statements. The impact of the revisions to the periods presented in this report are as follows:

 

Fury Gold Mines Limited 15
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

 

 

   As reported   Adjustment   Revised 
Revised Statement of Financial Position as of March 31, 2024               
Investment in associates   32,638    220    32,858 
Total assets   188,023    220    188,243 
Deficit   (149,988)   220    149,768 
Total equity   182,356    220    182,576 
                
Revised Consolidated Statement of Loss and Comprehensive Loss for the three months ended March 31, 2024               
Gain on investments   (537)   (220)   (757)
Net loss   934    (220)   714 
Total comprehensive loss   935    (220)   715 
                
Revised Consolidated Statement of Loss and Comprehensive Loss for the six months ended June 30, 2024               
Gain on investments   (537)   (220)   (757)
Net loss   4,428    (220)   4,208 
Total comprehensive loss   4,430    (220)   4,210 
                
Revised Statement of Financial Position
as of September 30, 2024		               
Investment in associates   29,341    2,000    31,341 
Total assets   184,099    2,000    186,099 
Deficit   (157,932)   2,000    (155,932)
Total equity   177,526    2,000    179,526 
                
Revised Consolidated Statement of Loss and Comprehensive Loss for the three months ended September 30, 2024               
Gain on investments   -    (1,780)   (1,780)
Net loss   4,453    (1,780)   2,673 
Total comprehensive loss   4,453    (1,780)   2,673 
                
Revised Consolidated Statement of Loss and Comprehensive Loss for the nine months ended September 30, 2024               
Gain on investments   (538)   (2,000)   (2,538)
Net loss   8,881    (2,000)   6,881 
Total comprehensive loss   8,883    (2,000)   6,883 

 

 

Fury Gold Mines Limited 16
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Section 6: Financial position, liquidity, and capital resources

 

   At June
2025		   At December 31
2024		 
Cash  $8,566   $4,912 
Restricted cash   144    144 
Marketable securities   2,093    2,358 
Other investments (1)   2,063    2,063 
Other assets   1,077    979 
Mineral property interests   50,158    45,200 
Investments in associates   27,421    29,456 
Current liabilities   1,746    1,864 
Non-current liabilities   4,642    5,045 
Working capital surplus (2)   11,677    8,045 
Accumulated deficit   262,180    257,192 

(1) Investment in unlisted shares of Alsym Energy Inc.

(2) Defined as total current assets less total current liabilities

 

Cash flows from continuing operations:  Three months ended June 30   Six months ended June 30 
   2025   2024   2025   2024 
Cash (used in) operating activities   (4,517)   (1,799)   (7,061)   (3,158)
Cash (used in) provided by investing activities   3,365    74    3,362    (101)
Cash (used in) provided by financing activities   7,405    4,518    7,357    4,471 

 

6.1 Cash flows

 

Operating activities:

 

§During the three months ended June 30, 2025, the Company used cash of $4,517 in operating activities compared to $1,799 in 2024. The higher cash outflow for the current period was consistent with higher exploration activities compared to the previous period.

 

§During the six months ended June 30, 2025, the Company used cash of $7,061 in operating activities compared to $3,158 during the six months ended June 30, 2024. The cash outflow was lower in 2024 due to overall lower operating expenditure compared to 2025, together with a net outflow of non-cash working capital compared to an inflow in 2024.

 

Investing activities:

 

§During the three months ended June 30, 2025, the Company generated cash from investing activities of $3,365, representing mostly proceeds from disposition of investment and marketable securities, offset by the acquisition of mineral property interests. During the three months ended June 30, 2024, the Company generated cash from investing activities of $74 representing mostly interest received on cash deposits.

 

§During the six months ended June 30, 2025, the Company generated cash from investing activities of $3,362, representing net receipt of $3,625 for selling DV shares and net receipts of $613 for selling marketable securities, offset by mineral property interest additions of $904 and equipment addition of $47. During the six months ended June 30, 2024, the Company used cash from investing activities of $101, representing mainly the acquisition of the Elenore South share of our operating partner, offset by proceeds from the sale of some of our associates’ shares.

 

Fury Gold Mines Limited 17
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Financing activities:

 

§For the three months ended June 30, 2025, cash provided by financing activities of $7,405 was primarily from a private placement that raised net $4,477 and a flow-through financing which raised net $2,857 during the quarter. For the three months ended June 30, 2024, cash provided by financing activities of $4,518 was primarily due to the flow-through funds raised in June 2024.

 

§For the six months ended June 30, 2025, cash provided by financing activities of $7,357 represented the net proceeds received from a private placement that raised net $4,477 and a flow-through financing which raised net $2,857. For the six months ended June 30, 2024, cash provided by financing activities of $4,471 primarily represented the net proceeds received in respect of a flow through common share (section 6.4) offering which was completed in June 2024.

 

6.2 Contractual commitments

 

In the normal course of business, the Company enters into contracts that give rise to commitments for future minimum payments. The following table summarizes the remaining contractual maturities of the Company’s financial liabilities and commitments as at June 30, 2025, shown in contractual undiscounted cashflows:

 

   Within 1 year   2 to 3
years		   Over 3
years		   At June 30
2025		   At December 31
2024		 
Accounts payable and accrued liabilities  $1,299   $-   $-   $1,299   $855 
Deferred government grant   47    -    -    47    - 
Quebec flow-through expenditure requirements   400    -    -    400    944 
Undiscounted lease payments   -    -    -    -    65 
Total  $1,746   $-   $-   $1,746   $1,864 

 

The Company also makes certain payments arising on mineral claims and leases on an annual or bi-annual basis to ensure all the Company’s properties remain in good standing. The Company estimates that $477 of payments arising on mineral claims and leases will be payable during the year ended December 31, 2025.

 

In addition, the Company is committed to certain office rental expense in respect of shared head office premises as noted in section 8.

 

6.3 Summary of mineral property interests

 

A summary of the carrying amounts of the Company’s mineral property interests is as follows:

 

   Quebec   Nunavut   Total 
Balance at December 31, 2023  $122,978   $19,661   $142,639 
Additions   3,030    -    3,030 
Change in estimate of provision for site reclamation and closure   (23)   427    404 
Impairment   (88,885)   (11,988)   (100,873)
Balance at December 31, 2024  $37,100   $8,100   $45,200 
Additions   5,436    -    5,436 
Change in estimate of provision for site reclamation and closure   (525)   47    (478)
Balance at June 30, 2025  $42,011   $8,147   $50,158 

 

Fury Gold Mines Limited 18
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

 

On February 29, 2024, the Company, and its former joint operations partner Newmont, through their respective subsidiaries, closed a transaction whereby the Company acquired 100% control of the joint operation interests, the Éléonore South project, consolidating these properties into the Company’s portfolio at which time the joint venture operation was dissolved. The 49.978% that Newmont held was acquired by the Company for $3,000 while incurring $30 in transaction costs. As part of the same transaction, the Company also acquired a 10.9% interest in Sirios for $1,300 which is held as marketable securities.

 

The Company’s market capitalization had been persistently below the carrying value of its mineral properties over the last few years, and, accordingly, the Company engaged a third-party valuation specialist to conduct a review to determine a more reflective carrying value of these mineral property interests. The resulting report recommended an impairment charge to better reflect their values. Accordingly the Company recorded an impairment charge of $100,873 for the year ended December 31, 2024, as described in section 6.7.

 

6.4 Capital resources

 

The Company seeks to proactively manage its capital resources and makes adjustments in light of changes in the economic environment and the risk characteristics of the Company’s assets. To effectively manage its capital requirements, the Company has in place a budgeting and cash management process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its current project plans and achieve its growth objectives. The Company ensures that there is sufficient liquidity available to meet its short-term business requirements, including contractual commitments, taking into account its anticipated cash outflows from exploration activities and its holdings of cash and marketable securities. The Company monitors and adjusts, when required, these exploration programs as well as corporate administrative costs to ensure that adequate levels of working capital are maintained.

 

As at the date of this MD&A, the Company expects its existing capital resources to support certain planned activities for the next 12 months at the Eau Claire and Éléonore South projects and short-term contractual commitments. The Company’s ability to undertake further project expansionary plans is dependent upon the Company’s ability to obtain adequate financing in the future. While the Company has been successful at raising capital in the past, there can be no assurance that the Company will have sufficient financing to meet its future capital requirements or that additional financing will be available on terms acceptable to the Company in the future.

 

During the six months ended June 30, 2025, the Company issued 8,394,045 common shares as part of the QPM acquisition with a fair market value of $4,533. Share issuance costs incurred in respect of the acquisition were $199.

 

The Company closed a non-brokered private equity placement for gross proceeds of $4,306, consisting of 6,728,000 units at C$0.64 per unit. Each unit consisted of one common share of Fury Gold and one common share purchase warrant exercisable to purchase one Fury Gold common share at C$0.80 for a period of three years. Share issuance costs incurred in respect of the private placement were $123.

 

As part of the June 2025 Offering, the same investor exercised its existing participation right and acquired 440,000 common shares of the Company at a price of C$0.67 per share for gross proceeds of $295. The funds raise from this investor will be used to advance the Company’s Committee Bay exploration program.

 

June 2025 financing

 

In June 2025 the Company issued 3,999,701 flow-through shares for gross proceeds of $3,080. Share issue costs related to the June 2025 Offering totaled $223, which included $183 in commissions and $40 in other issuance costs. The proceeds of the June 2025 Offering will be used for the Company’s exploration program in Nunavut and Quebec.

 

Fury Gold Mines Limited 19
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Reconciliation of use of fund of 2025 funding

 

Fury’s stated use of proceeds for the June 2025 Offering were to pursue exploration opportunities at both its Quebec and Nunavut projects. The funds raised and the application of these funds and working capital is summarized below.

 

   Q2 2025 
Exploration and evaluation  - 
G&A expenditures  - 
Total   - 
Amount raised   2,857 
Remaining to be spent   2,857 

 

June 2024 financing

 

In June 2024 the Company issued 5,320,000 flow-through shares for gross proceeds of $5,001 (“June 2024 Offering”). Share issue costs related to the June 2024 Offering totaled $533, which included $300 in commissions and $233 in other issuance costs. The proceeds of the June 2024 Offering will be used for the Company’s exploration program in Quebec.

 

Reconciliation of use of fund of 2024 funding

 

Fury’s stated use of proceeds for the June 2024 Offering were for (i) exploration at Eau Claire, (ii) Geochemical sampling and exploration at Éléonore South. The funds raised and the application of these funds and working capital is summarized below.

 

   Q2 2024   Q3 2024   Q4 2024   Q1 2025 
Quebec explorations   (456)   (1,773)   (626)   (1,710)
G&A expenditures   -    -    -    - 
Total   (456)   (1,773)   (626)   (1,710)
Amount raised   4,565    -    -    - 
Remaining to be spent   4,109    2,336    1,710    - 

 

The Company use of fund from the 2024 financing is summarized below:

 

Financing Intended Use of Funds ($,000) Actual Use of Proceeds Variance and Impact on Business Objectives and Milestones

June 2024 Financing:

 

· Issuance of 5,320,000 “flow-through” Common Shares for net proceeds of $4,565

 

· $2,500 for exploration on Eau Claire Project

 

· $2,000 to $2,500 for exploration at Éléonore South

 

 Work commenced at Eau Claire at the end of Q2 2024 while drilling at Elenore South commenced in February 2025 No variance. Planned exploration programs were completed.

 

 

Exercise of share options and warrants

 

During the six months ended June 30, 2025, 156,000 shares were issued as a result of share options being exercised with a weighted average exercise price of $0.5 for gross proceeds of $86. An amount of $42 attributed to these share options was transferred from the equity reserves and recorded against share capital. There was no exercise of share purchase warrants.

 

Fury Gold Mines Limited 20
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

As at June 30, 2025, the share options outstanding were as follows:

 

  Share options outstanding Share options exercisable

Exercise price

($/option)

 Number of
shares		 Weighted
average
exercise
price
($/option)		 Weighted
average
remaining life
(years)		 Number of
shares		 Weighted
average
exercise
price
($/option)		 Weighted
average
remaining life
(years)
C$0.53 – C$1.00 3,824,500 0.83 2.31 3,686,375  0.83  2.23
C$1.00 – C$1.85 2,921,513 1.10 1.54 2,921,513 1.10 1.54
C$2.05 – C$3.91 1,605,957 2.11 0.32 1,605,957 2.11 0.32
  8,351,970 1.17 1.66 8,213,845 1.18 1.61
               

The number of share purchase warrants outstanding at June 30, 2025 was as follows:

 

   Warrants
outstanding		   Weighted average exercise price
(C$/share)		 
Outstanding, December 31, 2023   7,461,450   $1.20 
Expired   (7,461,450)   1.20 
Outstanding, December 31, 2024   -    - 
Issued   7,324,808    0.84 
Outstanding, June 30, 2025   7,324,808   $0.84 

 

On January 9, 2025, the Company issued 590,000 DSU’s to directors and 1,142,500 RSU’s to officers, and employees. The DSU’s and RSU’s were issued in accordance with the Company’s LTI plan, with a grant-date fair value of $0.55 per unit, one third vesting annually on the anniversary and to be paid out as fully paid shares.

 

During the three and six months ended June 30, 2025, the Company granted 60,000 and 140,000 share options, respectively, (three and six months ended June 30, 2024 – 100,000 and 245,000, respectively), to certain UMS employees and consultants who provide defined on-going services to the Company, representative of employee service, as well as converted 282,470 options from QPM options during the three months ended June 30, 2025.

 

The Company does not utilize off-balance sheet arrangements. Earn-in arrangements are not viewed as off-balance sheet arrangements, and there are no other commitments held by the Company at the balance sheet date.

 

As at August 13, 2025, there were 8,351,970 and 7,324,808 share options and warrants outstanding, respectively, with a weighted average exercise price of $1.17 and $0.84, respectively.

 

6.5 Capital structure

 

Authorized: Unlimited common shares without par value. Unlimited preferred shares – nil issued and outstanding.

 

Number of common shares issued and outstanding as at June 30, 2025: 171,656,046

 

Number of common shares issued and outstanding as at August 13, 2025: 171,656,046

 

Section 7: Financial risk summary

 

As at June 30, 2025, the Company’s financial instruments consist of cash, marketable securities, other investments, accounts receivable, deposits, accounts payable and accrued liabilities, and deferred government grants. The fair values of these financial instruments, other than the marketable securities and other investments, approximate their carrying values due to their short term to maturity. The Company’s marketable securities, representing investments held in publicly traded entities, were classified as level 1 of the fair value hierarchy and measured at fair value using their quoted market price at period end. The Company’s other investments, representing investments held in private entities, were classified as level 3 of the fair value hierarchy and measured at fair value based on unobservable inputs.

 

Fury Gold Mines Limited 21
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

The Company’s financial instruments are exposed to certain financial risks, primarily liquidity risk, credit risk and market risk, including price risk. Details of the primary financial risks that the Company is exposed to are available in the notes to the Company’s condensed interim consolidated financial statements for the three and six months ended June 30, 2025.

 

Section 8: Related party transactions and balances

 

8.1 UMS

 

The Company did not have any related party transactions as contemplated by securities policies dealing with protection of minority shareholders. The Company’s shared services provider arrangements are considered related party transactions for financial disclosure purposes. The Company owns 25% of the common shares of Universal Mineral Services Ltd (“UMS “) a shared services provider, with the other 75% owned by three other mineral exploration companies. UMS is a private company through which its four junior resource shareholders, including Fury Gold, share geological, financial, and transactional advisory services as well as administrative services on a full, cost recovery basis. This allows the Company to maintain a more efficient and cost-effective corporate overhead structure by hiring fewer full-time employees and engaging outside professional advisory firms less frequently. The agreement has an indefinite term and can be terminated for any participant upon providing 180 days’ notice.

 

All transactions with UMS have occurred in the normal course of operations, and all amounts owing to or from UMS are unsecured, non-interest bearing, and have no specific terms of settlement, unless otherwise noted.

 

   Three months ended
June 30		   Six months ended
June 30		 
   2025   2024   2025   2024 
Exploration and evaluation costs  $36   $52   $73   $110 
General and administration   86    119    132    192 
Total transactions for the period  $122   $171   $205   $302 
                     

The outstanding balance owing at June 30, 2025, was $32 (December 31, 2024 – $90) which is included in accounts payable and accrued liabilities.

 

As part of the UMS arrangement, the Company is contractually obliged to pay certain rental expenses in respect of a ten-year office lease entered into by UMS on July 1, 2021. As at June 30, 2025, the Company expects to incur approximately $84 in respect of its share of future rental expense of UMS.

 

The Company issues share options to certain UMS employees, including key management personnel of the Company. The Company recognized a share-based compensation expense of $2 and $7 for the three and six months ended June 30, 2025, in respect of share options issued to UMS employees (June 30, 2024 - $1 expense and $4 recovery) which is included within employee benefits and exploration and evaluation costs.

 

8.2 Key management personnel

 

Key management personnel include Fury Gold’s board of directors and certain executive officers of the Company, including the Chief Executive Officer and Chief Financial Officer.

 

The remuneration of the Company’s key management personnel was as follows:

 

   Three months ended
June 30		   Six months ended
June 30		 
   2025   2024   2025   2024 
Short-term benefits provided to executives (a)   $261   $217   $527   $433 
Directors’ fees paid to non-executive directors   60    42    130    84 
Share-based payments   150    289    292    435 
Total  $471   $548   $949   $952 

(a) Short-term employee benefits include salaries, bonuses payable within twelve months of the date of the consolidated statement of financial position, and other annual employee benefits.

 

Fury Gold Mines Limited 22
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Section 9: Critical accounting estimates and judgements

 

The preparation of financial statements in conformity with IFRS Accounting Standards as issued by the IASB requires management to select accounting policies and make estimates and judgments that may have a significant impact on the consolidated financial statements. Estimates are continuously evaluated and are based on management’s experience and expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes may differ from these estimates.

 

In preparing the Company’s condensed interim consolidated financial statements for the six months ended June 30, 2025, the Company applied the material accounting policy information and critical accounting estimates and judgements disclosed in notes 3 and 5 of its consolidated financial statements for the year ended December 31, 2024.

 

New accounting policy adopted in Q2 2025

 

During the second quarter of 2025, the Company received two government grants. As this is the first time the Company has received such assistance, a new accounting policy has been adopted. Government grants are recognized when there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received. Grants related to income are recognized in profit or loss on a systematic basis over the periods in which the related expenses are incurred.

 

Application of new and revised accounting standards

 

On August 14, 2023, the IASB issued “Lack of Exchangeability (Amendments to IAS 21)” with amendments to clarify the accounting when there is a lack of exchangeability. The amendments to IAS 21 are effective for annual periods beginning on or after January 1, 2025, with earlier application permitted. The adoption of the new standard did not have an impact on the financial statements of the Company.

 

New and amended standards not yet effective

 

Certain pronouncements have been issued by the IASB that are mandatory for accounting periods beginning after December 31, 2025. The Company has not early adopted any of these pronouncements, and they are not expected to have a significant impact in the foreseeable future on the Company's consolidated financial statements once adopted.

 

On May 30, 2024, the IASB issued “Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)” to address matters identified during the post-implementation review of the classification and measurement requirements in IFRS 9 Financial Instruments and related requirements in IFRS 7 Financial Instruments: Disclosures. The amendments are effective for reporting periods beginning on or after January 1, 2026. Early application is permitted. The Company is currently evaluating the impact of the new standard on its financial statements.

 

On April 9, 2024, the IASB issued a new standard, called IFRS 18 Presentation and Disclosure in Financial Statements, which applies to an annual reporting period beginning on or after January 1, 2027, with earlier application permitted. IFRS 18 includes requirements for all entities applying IFRS Accounting Standards as issued by the IASB for the presentation and disclosure of information in financial statements. The Company is currently evaluating the impact of the new standard on its financial statements.

 

Fury Gold Mines Limited 23
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Section 10: Controls and procedures

 

Internal control over financial reporting

 

Internal control over financial reporting (“ICFR”) includes those policies and procedures that:

 

§pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;

 

§provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with IFRS Accounting Standards as issued by the IASB, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

 

§provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company assets, or incurring liabilities or other obligations that could have a material effect on the consolidated financial statements.

 

It is management’s responsibility to establish and maintain adequate ICFR to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS Accounting Standards as issued by the IASB.

 

Management evaluated the design and operating effectiveness of the Company’s internal control over financial reporting based on the criteria established in the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that evaluation, the CEO and CFO concluded that such ICFR were not effective at the reasonable assurance level as of December 31, 2024. During the second quarter of 2025 we successfully completed the testing necessary to conclude that the remedial controls are operating effectively, and the material weakness has been remediated.

 

Disclosure controls and procedures

 

Disclosure controls and procedures (“DC&P”) are designed to provide reasonable assurance that information required to be disclosed in reports filed with, or submitted to, securities regulatory authorities is recorded, processed, summarized and reported within the time periods specified under Canadian and U.S. securities laws. As of December 31, 2024, an evaluation was carried out under the supervision of, and with the participation of, the Company's management, including the CEO and CFO, of the effectiveness of the Company's DC&P, as defined in the applicable Canadian and U.S. securities laws. Based on that evaluation, the CEO and CFO concluded that such DC&P were not effective at the reasonable assurance level as of December 31, 2024, due to the material weakness in our internal control over financial reporting as described below. During the second quarter of 2025 we successfully completed the testing necessary to conclude that the remedial controls are operating effectively, and the material weakness has been remediated.

 

Material Weakness in Internal Control Over Financial Reporting

 

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

 

In the fourth quarter of 2024, management determined that there was a material weakness in the Company’s ICFR and DC&P related to the review of complex accounting transactions outside of the normal course of the Company’s operations. Specifically, we did not design and maintain controls to timely analyze and report dilution gains or losses resulting from changes in ownership in associates accounted for using the equity method.

 

This control deficiency resulted in a misstatement of gain on investments and investments in associates relating to the Company’s investment in Dolly Varden, specifically an understatement of dilution gains on the consolidated statement of (earnings) loss and comprehensive (income) loss, as well as an understatement of the investment in associate balance in the statement of financial position, which management corrected via revision as noted in section 5.2.

 

 

 

 

 

Fury Gold Mines Limited 24
Management’s Discussion and Analysis of Financial Condition and 

Results of Operations for the Three and Six Months Ended June 30, 2025

 
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted) 

 

Changes in Internal Control over Financial Reporting

 

Other than the changes discussed above, there were no changes in the Company’s ICFR (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the six months ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Additional disclosures pertaining to the Company’s management information circulars, material change reports, press releases, and other information are available on SEDAR+ at www.sedarplus.com.

 

On behalf of the Board of Directors,

 

“Forrester A. Clark”

 

Forrester A. Clark

 

Chief Executive Officer

 

August 13, 2025

 

 

 

 

 

 

Fury Gold Mines Limited 25
Management’s Discussion and Analysis of Financial Condition and  

Results of Operations for the Three and Six Months Ended June 30, 2025

  
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted)