Ann: MANAGEMENT'S DISCUSSION AND ANALYSIS-THREE MONTHS - 31/12/24, page-2

As an early stage development company, EMN has no material operating revenues and is unable to self-finance
its operations. During the period ended December 31, 2024, the Company incurred a net loss of $5,176 and
used $3,287 cash for operating activities and $20 for investing activities. As at December 31, 2024, the
Company's working capital (current assets less current liabilities) was $3,184 however the Company's capital
resources are not expected to provide sufficient working capital to fund its corporate and project development
costs for at least twelve months from the date of these financial statements. Further, there is no assurance that
the evaluation and development activities executed or planned by the Company for the Chvaletice Manganese
Project will result in the development of a profitable commercial operation. The Company is expected to operate
at a loss while the Company is developing the Project.
The Company has deferred its interest payments with Orion to provide additional liquidity however it is
anticipated that the Company will be required to obtain financing from the sale of equity and/ or another form of
financing. The ability of the Company to complete any financing in the future will depend principally upon
prevailing market conditions and the performance of the Company. Such funding may not be available when
needed, if at all, or may not be available on terms favorable to the Company. These factors give rise to material
uncertainty that may cast significant doubt upon the Company's ability to continue as a going concern. The
condensed interim consolidated financial statements do not reflect adjustments in the carrying values of the
assets and liabilities, the reported revenues and expenses and the balance sheet classifications used, that
would be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern
in the normal course of operations. Such adjustments could be material