Fosterville South Exploration : June 30, 2022 Financial Statement

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Expressed in Canadian Dollars - Unaudited)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022

NOTICE TO READER

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the interim financial statements have not been reviewed by an auditor.

The accompanying unaudited interim financial statements of the Company have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these interim financial statements in accordance with standards established by the Canadian Institute of Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

FOSTERVILLE SOUTH EXPLORATION LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(Expressed in Canadian Dollars - Unaudited)

		June 30,		December 31,
		2022		2021
ASSETS
Current
Cash	$	17,978,095	$	21,649,394
Receivables		90,995		61,291
Prepaid expenses		290,268		125,498
		18,359,358		21,836,183
Equipment (Note 5)		256,034		299,334
Reclamation bonds		58,044		60,087
Exploration and evaluation assets (Note 6)		826,629		833,627
	$	19,500,065	$	23,029,231
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities (Note 12)	$	348,815	$	330,841
Deferred acquisition payments - current portion (Note 7)		67,674		61,855
		416,489		392,696
SHAREHOLDERS' EQUITY
Share capital (Note 9)		40,398,428		40,174,111
Contributed surplus		5,418,189		5,489,144
Accumulated other comprehensive loss		(17,630)		27,838
Deficit		(26,715,411)		(23,054,558)
		19,083,576		22,636,535
	$	19,500,065	$	23,029,231

Nature of operations (Note 1)

Approved and authorized on behalf of the Board of Directors on August 11, 2022

"Bryan Slusarchuk"

Director

"Robert McMorran"

Director

3

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

FOSTERVILLE SOUTH EXPLORATION LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(Expressed in Canadian Dollars - Unaudited)

	Three-monthThree-month	Six-month	Six-month
	period ended	period ended	Period ended	period ended
For the	June 30, 2022	June 30, 2021	June 30, 2022	June 30, 2021

EXPENSES Accretion (Note 7) Consulting fees Depreciation (Note 5) Directors' fees (Note 12) Exploration expenditures (Note 6) Foreign exchange loss (gain) Management fees (Note 12) Office expenses

Professional fees (Note 12) Share-based payments (Note 9) Shareholder communications and marketing

Transfer agent, filing and listing fees Travel

Loss before undernoted

Interest income

Loss for the period

Other comprehensive loss: Exchange difference on translation of foreign operations

Comprehensive Loss for the period

$	2,971	$	5,654	$	5,799	$	11,181
	-		-		10,318		448
	26,523		45,369		52,763		88,188
	18,000		18,000		36,000		36,000
	1,480,856		1,275,076		2,764,103		2,590,959
	1,642		553		1,975		(2,190)
	81,000		108,000		164,700		270,000
	43,866		45,534		82,810		69,785
	63,651		74,143		178,362		180,716
	3,534		3,685,788		24,962		3,685,788
	159,148		439,027		303,760		731,880
	5,939		33,225		18,988		60,725
	39,277		245		59,576		547
	(1,926,407)		(5,730,614)		(3,704,116)		(7,724,027)
	30,147		23,743		43,263		39,381
	(1,896,260)		(5,706,871)		(3,660,853)		(7,684,646)
	(43,130)		(74,495)		(45,468)		(103,270)
$	(1,939,390)	$	(5,781,366)	$	(3,706,321)	$	(7,787,916)

Basic and diluted loss per common share	$	(0.03)	$	(0.09)	$	(0.05)	$	(0.11)
Basic and diluted weighted average
number of common shares outstanding		68,019,560		67,918,383		68,019,560		67,918,383

4

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

FOSTERVILLE SOUTH EXPLORATION LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (Expressed in Canadian dollars, except for share figures - Unaudited)

										Accumulated
										Other
							Contributed	Comprehensive
	Number		Amount		Surplus		Loss		Deficit		Total
Balance, December 31, 2020	67,918,383	$	40,174,111	$	1,604,093	$	123,337		$	(10,951,738)	$	30,949,803
Share-based payments	-			-			3,685,788		-				-			3,685,788
Loss for the period	-			-			-			(103,270)		(7,684,646)		(7,787,916)
Balance, June 30, 2021
67,918,383		40,174,111		5,289,881		20,067			(18,636,384)		26,847,675
Share-based payments	-			-			199,263		-				-			199,263
Loss for the period	-			-			-			7,771			(4,418,174)		(4,410,403)
Balance, December 31, 2021
67,918,383		40,174,111		5,489,144		27,838			(23,054,558)		22,636,535
Stock option exercised	321,000		224,317		(95,917)		-				-			128,400
Share-based payments	-			-			24,962		-				-			24,962
Loss for the period	-			-			-			(45,468)		(3,660,853)		(3,706,321)
Balance, June 30, 2022
68,239,383	$	40,398,428	$	5,418,189	$	(17,630)	$	(26,715,411)	$	19,083,576

5

The accompanying notes are an integral part of these condensed consolidated interim financial statements.