FURY

Business Context and Reporting Period

Company: Fury Gold Mines Ltd. (FURY)

Reporting Period: Fiscal year ended December 31, 2024 (Form 20-F).

Business Overview: Fury Gold is a Canadian-focused gold exploration company with no operating revenues. Its primary assets are three material mineral properties: the Eau Claire Project and the Éléonore South Project in Quebec, and the Committee Bay Project in Nunavut. The company is in the exploration stage and relies on equity financing to fund operations.

Key Developments:

• Acquired 100% ownership of the Éléonore South Project from Newmont Corporation in February 2024.
• Reduced its equity interest in associate Dolly Varden Silver Corporation to 16.11% through share sales in 2024.
• Announced a proposed acquisition of Quebec Precious Metals Corporation (QPM) in February 2025 (subsequent event).

Key Financial Metrics (Year Ended Dec 31, 2024)

Note: All figures are in thousands of Canadian dollars unless otherwise noted.

Material Changes vs. Prior Period

• Significant Impairment Charge: The 2024 net loss increased significantly due to a non-cash impairment charge of $100.9 million on mineral property interests. This was driven by the company's market capitalization persistently being below the carrying value of its assets. The impairment was allocated as $89.3 million to the Eau Claire project and $11.6 million to the Committee Bay project.
• Exploration Costs: Exploration and evaluation expenses decreased to $5.5 million in 2024 from $9.3 million in 2023, reflecting a shorter operational season and program breaks.
• Investment Gains: The company recorded a gain on investments of $4.1 million, primarily from the disposition of Dolly Varden shares and dilution gains, partially offsetting operating losses.
• Asset Consolidation: The acquisition of Newmont's interest in Éléonore South resulted in a $3.0 million addition to mineral property interests.

Guidance, Outlook, and Risks

Outlook and Guidance:

• The company expects to continue exploration at Eau Claire and Éléonore South in 2025.
• Management anticipates negative cash flow from operations to continue until a project reaches commercial production or is sold.
• Future capital requirements depend on the success of exploration programs and the ability to secure additional financing.

Material Risks and Contingencies:

• Going Concern: The company has no operating revenue and a history of losses. Continued operations depend on raising additional capital, which may result in shareholder dilution.
• Exploration Risk: There is no assurance that exploration will result in commercially viable reserves. Mineral resource estimates are not reserves and do not have demonstrated economic viability.
• Internal Control Weakness: Management identified a material weakness in internal controls related to the review of complex accounting transactions, specifically the accounting for dilution gains/losses in associates (Dolly Varden). This led to the restatement of prior interim financial statements.
• Flow-Through Share Obligations: The company has $0.9 million in remaining flow-through share expenditures required to be incurred by December 31, 2025, to avoid financial penalties.

Investor Verification Checklist

• Impairment Methodology: Verify the assumptions used in the third-party valuation for the $100.9 million impairment charge, specifically the "in-situ ounce multiples" applied to the Eau Claire and Committee Bay projects.
• Internal Control Remediation: Monitor the progress of the remediation plan for the material weakness in internal controls regarding equity method accounting for associates.
• Financing Needs: Assess the company's ability to raise capital to fund the 2025 exploration budget (estimated at up to $14.2 million for Eau Claire alone) and meet flow-through share expenditure requirements.
• QPM Acquisition: Track the status of the proposed acquisition of Quebec Precious Metals Corporation, including shareholder and court approvals, as this is a significant subsequent event.
• Resource Estimates: Review the updated Mineral Resource Estimates for Eau Claire (1.16Moz Measured & Indicated) and the maiden estimate for Percival to understand the basis for future value.