U.S. GoldMining Inc. (USGO) Business

Business
Overview

We
are a United States domiciled exploration stage company and our sole project is currently the Whistler Project. The Whistler Project
is a gold-copper exploration project located in the Yentna Mining District, approximately 170 km northwest of Anchorage, in Alaska. See
“Item 2. Properties” for further information.

We
were incorporated on June 30, 2015, in Alaska as “BRI Alaska Corp.” and on August 5, 2015, pursuant to an asset purchase
agreement dated July 20, 2015, by and among us, GoldMining Inc. (“GoldMining”), Kiska Metals Corporation (“Kiska”)
and Geoinformatics Alaska Exploration, Inc. (“Geoinformatics”), we acquired a 100% interest in the Whistler Project
and certain related assets. On September 8, 2022, we redomiciled to Nevada and changed our name to “U.S. GoldMining Inc.”

Our
sole subsidiary is US GoldMining Canada Inc., a company incorporated under the laws of British Columbia, Canada, and which is wholly-owned
by us.

We
are a subsidiary of GoldMining, a Toronto Stock Exchange and NYSE American listed precious metals exploration and development company
that was incorporated in 2009 and whose disclosed strategy is to expand its property portfolio through accretive transactions of resource
stage gold projects and to advance its properties towards development. As of the date hereof, GoldMining owns 9,878,261 shares of common
stock, par value $0.001 per share (the “Common Stock”), representing approximately 74.2% of our outstanding Common
Stock, and warrants (the “Warrants”) to purchase 122,490 shares of Common Stock.

Our
principal executive offices are located at 1188 West Georgia Street, Suite 1830, Vancouver, British Columbia, Canada V6E 4A2 and our
head operating offices are located at 301 Calista Court, Suite 200, Office 203, Anchorage, Alaska, 99518. Our website address is www.us.goldmining.com.
The information contained on, or that can be accessed through, our website is not a part of this Annual Report.

Our
shares of Common Stock and warrants to purchase shares of Common Stock are listed on the Nasdaq Capital Market under the symbols “USGO”
and “USGOW,” respectively.

General
Development of Business

In
April 2023, we completed our initial public offering (the “IPO”), pursuant to which we issued 2,000,000 units (the
“Units”) at an initial offering price of $10.00 per Unit for gross proceeds of $20,000,000. Each Unit was comprised
of one share of Common Stock and one Warrant, with each Warrant entitling the holder thereof to acquire one share of Common Stock at
an exercise price of $13.00. Each Warrant is immediately exercisable for a three-year period after the date of issuance.

Prior
to our IPO, we were a wholly-owned subsidiary of GoldMining and acquired the Whistler Project in 2015 from Kiska. Prior to our IPO, we
had not completed any material exploration of the Whistler Project. For a description of exploration activities of past operators please
see “Item 2. Properties”.

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After
completion of our IPO, on May 30, 2023, we announced that we had mobilized a field team to execute our initial 2023 confirmatory exploration
program at the Whistler Project. On August 21, 2023, we announced commencement of our 2023 Phase 1 Drilling Project at the Whistler Project.
The program was designed as part of a multi-phase program with the goal of expanding and increasing confidence in existing deposits and
potentially testing prospective exploration targets in proximity to areas with known Mineral Resource estimates. Phase I was proposed
to include 5,000 m of drilling. On January 16, 2024, we announced results from four initial confirmatory drill holes covering 2,234 m
at the Whistler Project. Drilling was paused thereafter for the winter break.

During 2024, we completed six diamond core holes for 4,006 m, bringing the total
drill production meterage for 2023 and 2024 to 6,240 m. Four drill holes for 2,782 m were completed at the Whistler Deposit, and two drill
holes for 1,224 m were completed at the Raintree Deposit located approximately one kilometer east of the Whistler Deposit. In 2025, we
completed a total of 621.25 m of shallow shock auger drilling to collect basal till and top-of-bedrock samples in the Whistler Orbit area,
part of an exploration program to collect geochemical evidence which combined with geophysical interpretation has developed numerous deeper
porphyry exploration targets.

See
“Item 2. Properties” for further information.

Our
Strategy

Our
strategy is to enhance and grow the value of our asset base, with a focus on exploring and advancing the Whistler Project in Alaska.
Our longer-term strategy may include seeking out compelling acquisition opportunities that enhance the value of our assets and demonstrate
potential for significant growth through exploration and development.

Our
management team and board of directors have extensive combined mining sector related experience, including exploration, development,
operating and capital markets experience. We intend to capitalize on this significant experience as we seek to advance the Whistler Project
and otherwise grow our business, following best practices with a dedication to safety, the environment and sustainable development for
local communities.

As
part of our strategy, we expect to utilize a cost-efficient business model by operating with an efficient, highly experienced team and
calling upon third-party resources to supplement our skill set as opportunities and needs may arise. This strategy should enable us to
maintain a high degree of flexibility in our cost structure. We believe it will also help to ensure that our business model is scalable
and allows us to seek new growth opportunities in a cost effective and value enhancing manner.

Competition

The
mining industry in general is extremely competitive in all of its phases, and we compete with many companies possessing greater financial
and technical resources. Competition in the precious metals mining industry is primarily for: mineral rich properties that can be developed
and produced economically; technical expertise to find, develop, and operate such properties; labor to operate the properties; and capital
for the purpose of funding such properties. Many competitors not only explore for and mine precious metals, but also conduct refining
and marketing operations on a global basis. Such factors may result in us being unable to acquire desired properties, to recruit or retain
qualified employees or to acquire the capital necessary to fund our operations and develop mining properties. Existing or future competition
in the mining industry could materially adversely affect our Company’s prospects for mineral exploration and success in the future.
See “Item 1A. Risk Factors”.

Sustainability

We
are committed to responsible exploration and mining practices. Oversight for our sustainability policies and practices and management
of sustainability-related risks is provided by the board of directors. The board of directors has delegated oversight of certain sustainability
responsibilities to its committees and management, including the Sustainability Committee, which oversees the Company’s goals,
strategies, compliance and commitments related to sustainability.

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Our
Health and Safety (“H&S”) Policy is complemented by our site-specific operational guidelines. As a part of our
H&S management program, we have identified H&S risks to workers, contractors, visitors and other stakeholders, and we have developed
prevention measures in the form of operational protocols and procedures. We have trained all workers on their respective H&S procedures
and protocols, and we monitor the effectiveness of these measures. All injuries are recorded, and reports are analyzed and tracked on
a regular basis to identify ways to improve the safety and well-being of our people.

We
aspire to be stewards of the environment while advancing the Whistler Project and are committed to employing strong environmental risk
management practices. We have established and follow operational procedures that identify environmental risks, sets out controls and
mitigation plans, and minimizes environmental impacts.

We
conduct exploration activities in accordance with applicable regulatory requirements and with the objective of minimizing undue impacts
to land and water resources. Portions of our exploration activities have taken place on previously disturbed lands, allowing us to reduce
impacts on plant life and soil.

There
are no species listed as threatened or endangered in the project area. We have conducted initial environmental baseline studies, including
water quality, fish species, wetland and wildlife studies. We continue to advance these studies inline with permit and license requirements
as set out by the State of Alaska. We take care to ensure water quality and fish are protected during water diversion for its use in
drilling, including screening of water intakes and pumps.

We
are investing in Alaska through working with local suppliers and contractors and supporting local initiatives important to the community.
We have commenced community consultations to share with stakeholders our plans for the Whistler Project, prioritizing meeting with community
organizations, native groups and government.

Government
Regulation

Our
exploration and development activities are subject to various national, state, and local laws and regulations in the United States, which
govern prospecting, development, mining, production, exports, taxes, labor standards, occupational health, waste disposal, protection
of the environment, mine safety, hazardous substances, disclosure requirements and other matters. We have obtained or have pending applications
for those licenses, permits or other authorizations currently required to conduct our exploration and development programs. We believe
that we are in compliance in all material respects with applicable mining, health, safety and environmental statutes and regulations
in the United States. There are no current orders or directions relating to us with respect to the foregoing laws and regulations. For
a more detailed discussion of the various government laws and regulations applicable to our operations and potential negative effects
of these laws and regulations, see also “Item 1A. Risk Factors”.

The
exploration and development of a mining prospect is subject to regulation by a number of federal and state government authorities. These
include the U.S. Environmental Protection Agency (the “EPA”) and the United States Bureau of Land Management (“BLM”)
as well as the various state environmental protection agencies. The regulations address many environmental issues relating to air, soil
and water contamination and apply to many mining related activities including exploration, mine construction, mineral extraction, ore
milling, water use, waste disposal and use of toxic substances. In addition, we are subject to regulations relating to labor standards,
occupational health and safety, mine safety, general land use, export of minerals and taxation. Many of the regulations require permits
or licenses to be obtained and the filing of Notices of Intent and Plans of Operations, the absence of which or inability to obtain will
adversely affect the ability for us to conduct our exploration, development and operation activities. The failure to comply with the
regulations and terms of permits and licenses may result in fines or other penalties or in revocation of a permit or license or loss
of a prospect.

In
order to conduct drilling and other exploration activities under the laws of Alaska, we submitted an Application for Permit to Mine (“APMA”)
to Alaska’s Department of Natural Resources (“ADNR”) on June 30, 2022, and on September 22, 2022, the ADNR approved
Multi-Year 2022-2026 Exploration and Reclamation Permit Number 2778 for Hardrock Exploration – Skwentna River – Yentna
Mining District (the “Exploration Permit”) and Reclamation Plan Approval Number 2778 (“Reclamation
Plan”). For additional information, see “Item 2. Properties”.

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Federal

On
lands owned by the United States, mining rights are governed by the General Mining Law of 1872, as amended, which allows the location
of mining claims on certain federal lands upon the discovery of a valuable mineral deposit and compliance with location requirements.
The exploration of mining properties and development and operation of mines is governed by both federal and state laws. Federal laws
that govern mining claim location and maintenance and mining operations on federal lands are generally administered by the BLM. Additional
federal laws, governing mine safety and health, also apply. State laws also require various permits and approvals before exploration,
development or production operations can begin. Among other things, a reclamation plan must typically be prepared and approved, with
bonding in the amount of projected reclamation costs. The bond is used to ensure that proper reclamation takes place, and the bond will
not be released until that time. Local jurisdictions may also impose permitting requirements (such as conditional use permits or zoning
approvals). The Whistler Project does not incorporate any Federal lands.

Alaska

In
Alaska, low impact, initial stage surface exploration such as stream sediment, soil and rock chip sampling do not require any permits.
The State of Alaska requires an APMA exploration permit for all substantial surface disturbances such as trenching, road building and
drilling. These permits are also reviewed by related state and federal agencies that can comment and require specific changes to the
proposed work plans to minimize impacts on the environment. The permitting process for significant disturbances generally requires 30
days for processing and all work must be bonded. Due to the northern climate, exploration work in some areas of Alaska can be limited
by excessive snow cover and cold temperatures. In general, surface sampling work is limited to May through September and surface drilling
from March through November, although some locations afford opportunities for year round exploration operations and others, such as wetland
areas, may only be explored while frozen in the winter. Mining is conducted in a number of locations in Alaska on a year round basis,
both open pit and underground.

Employees

As
of December 31, 2025, we had a total of ten employees, seven of which were full time employees. We rely upon and engage consultants on
a contract basis to provide services, management and personnel who assist us to carry on our administrative, stockholder communication
and project exploration activities in the United States.

We
use the services of independent consultants and contractors to perform various professional services, including land acquisition, legal,
environmental and tax services. In addition, we utilize the services of independent contractors to perform construction, geological,
exploration and drilling operation services and independent third-party engineering firms assist with the design, engineering, and cost
optimization of the proposed large-scale complex.

Reports
to Security Holders

We
are subject to the informational requirements of the Exchange Act. Accordingly, we file annual reports, quarterly reports and proxy statements
electronically with the SEC. The SEC maintains an internet site, at www.sec.gov, that contains reports, proxy and information statements
and other information regarding issuers that file electronically with the SEC. Copies of such documents are also available on our website
at www.us.goldmining.com.