Honey Badger Silver : Condensed Consolidated Interim Financial Statements For the Three and Nine Months Ended September 30, 2023, and 2022

HONEY BADGER SILVER INC.

Condensed Consolidated Interim Financial Statements

For the Three and Nine Months Ended September 30, 2023, and 2022

(Expressed in Canadian Dollars)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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, the financial statements must be accompanied by a notice indicating that the interim financial statements have not been reviewed by an auditor. The accompanying financial statements of the Company have been

has not performed a review of these interim financial statements in accordance with standards established by the Chartered

Condensed Consolidated Interim Statements of Financial Position (Unaudited)

(Expressed in Canadian dollars)

As at		September 30,	December 31,
		2023	2022
	Note	$	$
Assets
Current assets
Cash and cash equivalents	3	686,486	544,478
Marketable securities	4	34,696	32,613
Taxes and other receivables		34,486	34,443
Prepaid expenses		26,238	27,443
Total Assets		781,906	638,977
Liabilities and
Current liabilities
Accounts payable and accrued liabilities	6	315,949	118,295
Due to related parties	9	236,281	188,791
Flow-through share premium liability	7	9,065
Total Liabilities		561,295	307,086
Shareholders' Equity
Share capital	8(a)	17,893,319	17,056,261
Warrants	8(b)	1,224,496	858,442
Contributed surplus	8(c)	4,502,623	4,422,496
Accumulated deficit		(23,399,827)	(22,005,308)
		220,611	331,891
		781,906	638,977

Nature of operations and going concern (note 1)

Commitments (note 10)

Approved on behalf of the Board of Directors:

Chad Williams

John H. Hill

DirectorDirector

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

- 2 -

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (Unaudited)

(Expressed in Canadian dollars)

		Three months ended	Nine months ended
			September 30,		September 30,
	Notes	2023	2022	2023	2022
		$	$	$	$
Expenses
Exploration expenditures	5	216,449	154,542	297,475	595,203
General and administrative		33,018	18,111	46,559	48,552
Investor relations and travel		106,766	41,691	242,706	273,156
Management fees	9	165,750	111,825	514,020	325,800
Professional and consulting fees		64,533	25,866	174,633	117,627
Regulatory fees and transfer agent		11,247	11,650	47,807	47,298
		597,763	363,685	1,323,200	1,407,636
Share-based compensation	8,9	43,041	52,782	78,263	158,346
Loss before under noted items:		640,804	416,467	1,401,463	1,565,982
Unrealized (gain) loss on marketable
securities	4		28,786	(2,082)	94,012
Gain on flow-through premium	7	(6,929)		(6,929)	(27,450)
Interest income		(26)	(3,548)	(2,071)	(6,734)
Foreign exchange loss		1,112	1,084	4,138	1,056
Net loss and comprehensive loss		634,961	442,789	1,394,519	1,626,866
Loss per share - basic and diluted		$0.02	$0.01	$0.04	$0.05
Weighted average number of common
shares outstanding basic and diluted (1)		39,476,491	31,173,448	36,137,446	31,173,448

1. Weighted average number of common shares outstanding has been restated to give effect to a retroactive consolidation See note 7.

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

- 3 -

Condensed Consolidated Interim Statements of Cash Flows (Unaudited)

(Expressed in Canadian dollars)

For the nine months ended September 30,	2023	2022
	$	$
Operating activities
Loss for the period	(1,394,519)	(1,626,866)
Items not affecting cash:
Share-based compensation	78,263	158,346
Unrealized (gain) loss on marketable securities	(2,083)	94,012
Gain on flow-through premium	(6,929)	(27,450)
Net change in non-cash working capital items:
Taxes and other receivables	(44)	106,773
Prepaid expenses	1,205	6,350
Accounts payable and accrued liabilities	245,145	35,315
Net cash used in operating activities	(1,078,962)	(1,253,519)
Financing activities
Proceeds from private placement	1,261,450
Share issuance costs	(40,480)
Net cash provided by financing activities	1,220,970
Change in cash and cash equivalents	142,008	(1,253,519)
Cash and cash equivalents, beginning of period	544,478	2,143,956
Cash and cash equivalents, end of period	686,486	890,437
Supplemental cash-flow disclosure:
Income tax paid
Interest paid
Issuance of broker warrants	7,578

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

- 4 -

Statements of Changes in Shareholders	Equity (Unaudited)
(Expressed in Canadian dollars)
		Share Capital	Reserves		Shareholder Equity (Deficit)
	Note	Common		Warrants	Contributed	Accumulated
	Shares	Share Capital	Surplus	Deficit	Total
		#	$	$	$	$	$
Balance at December 31, 2021		31,173,448	17,056,261	1,086,664	3,983,146	(20,368,507)	1,757,564
Expiry of warrants				(228,222)	228,222
Share-based compensation					158,346		158,346
Loss for the period						(1,626,866)	(1,626,866)
Balance at September 30, 2022		31,173,448	17,056,261	858,442	4,369,714	(21,995,373)	289,044
Share-based compensation					52,782		52,782
Loss for the period						(9,935)	(9,935)
Balance at December 31, 2022		31,173,448	17,056,261	858,442	4,422,496	(22,005,308)	331,891
Share issued for private placements	8(a)	8,303,043	1,261,450				1,261,450
Share issue costs (2)			(48,058)	7,578			(40,480)
Issuance of warrants	8(b)		(360,340)	360,340
Expiry of warrants	8(b)			(1,864)	1,864
Share-based compensation	8(c)				78,263		78,263
Premium on flow-through shares	7		(15,994)				(15,994)
Loss for the period						(1,394,519)	(1,394,519)
Balance at September 30, 2023		39,476,491	17,893,319	1,224,496	4,502,623	(23,399,827)	220,611

1. The number of common shares in this table is restated to give effect to a retroactive consolidationSee note 8.
2. Included in this number is the fair value of $7,578 estimated for the warrants issued to brokers pursuant to the April Offering.

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

- 5 -

Notes to the Condensed Consolidated Interim Financial Statements (Unaudited) For the three and nine months ended September 30, 2023 and 2022

1. Nature of Operations and Going Concern

Honey Badger Silver Inc. ( the Company) was incorporated in Ontario, in 1992. The Companys corporate office is located at 401 Bay Street, Suite 2704, Toronto, Ontario M5H 2Y4 and its

common shares are traded and on the OTCQB Market Exchange under the trading symbol "HBEIF.

Honey Badger is engaged in the identification and acquisition of silver-based and other metals-based assets, including high-grade properties, projects with existing mineral resources/reserves, and cash-flowing metal royalties and streams.

The accompanying condensed consolidated interim financial statements have been prepared on a going concern basis of presentation, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company is currently in the exploration stage and has not commenced commercial operations. For the nine months ended September 30, 2023, the Company had a loss of $1,394,519 (2022 $1,626,866) and an accumulated deficit of $23,399,827 (December 31, 2022 $22,005,308).

These Interim Financial Statements do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and, therefore, need to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying Interim Financial Statements. In assessing whether the going concern assumption is appropriate, Management takes into account all available information about the future, which is at least, but not limited to, three months from the end of the reporting period.

Although the Company has taken steps to verify title to the exploration and evaluation properties in which it has a property interest, in accordance with industry standards for the current stage of exploration of such

interests titles may be subject to government licensing requirements or regulations, social licensing requirements, unregistered prior agreements, unregistered claims, aboriginal claims, and non-compliance with regulatory and environmental

of contracts, expropriation of properties, and political uncertainty.

Working capital at September 30, 2023, is $220,612 (December 31, 2022 - $331,891). From April 11, 2023 to May 24, 2023 the Company completed a non-brokered hard dollar and flow-through private placement, for aggregate gross proceeds of $1,261,450

Management believes the Company has sufficient funding to meet the ongoing general and administrative expenses incurred to maintain operations for the short term, however, depending on exploration results and impending and future acquisitions, the Company may need to raise additional funds, through the issuance of equity or debt. Although the Company has been successful in raising funding to date there can be no assurance that adequate or sufficient funding will be available in the future, or available under terms acceptable to the Company. In the event the Company is unable to secure further financing, it may not be able to make additional acquisitions or advance exploration, therefore, for these reasons, there may exist material uncertainties that cast significant doubt on the ability of the Company to continue as a going concern.

- 6 -

Notes to the Condensed Consolidated Interim Financial Statements (Unaudited) For the three and nine months ended September 30, 2023 and 2022

2. Significant Accounting Policies Statement of compliance

The Company applies International Financial Reporting Standards ("IFRS") as issued by the International

ited condensed consolidated interim financial statements

have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by IASB and interpretations issued by IFRIC.

The policies applied in the Interim Financial Statements are based on IFRS issued and outstanding as of the date of filing this report. The same accounting policies and methods of computation followed in these Interim Financial Statements are set out in note 2 of the most recently filed annual (audited) financial statements as

at and for the year ended December 31, 202, except where noted (audited) financial statements for the year ending December 31, 2023, could result in the restatement of these Interim Financial

Statements.

These Interim Financial Statements are presented in Canadian dollars, the Company's functional currency. All amounts have been rounded to the nearest dollar unless otherwise noted.

These Interim Financial Statements were authorized for issue by the Board of Directors on November 27, 2023.

Basis of presentation

These Interim Financial Statements have been prepared on a historical cost basis except for certain financial instruments that have been measured at fair value. In addition, these Interim Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information.

Basis of consolidation

These Interim Financial Statements include the accounts of the Company, and its wholly owned subsidiaries: 606596 Alberta Ltd., The Thunder Bay Silver & Cobalt Corp., Silver Storm Royalties Inc. (formerly 2815210 Ontario Limited), Honey Badger Silver (Nunavut) Ltd. and Honey Badger Chile, SpA, all of which have no assets in the current or prior period. All intercompany balances and transactions have been eliminated.

Significant accounting judgments, estimates and assumptions

The preparation of financial statements in accordance with IFRS requires Management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Judgments, estimates, and assumptions are continuously evaluated and are

based on Mrevious experience. However, actual outcomes may differ from the amounts included in the financial statements.

- 7 -

Notes to the Condensed Consolidated Interim Financial Statements (Unaudited) For the three and nine months ended September 30, 2023 and 2022

Significant assumptions about the future and other sources of estimation uncertainty that Management has made at the end of the reporting period, that could have an effect on the amounts recognized in the Interim Financial Statements relate to the following:

Going concern the preparation of these Interim Financial Statements requires Management to make judgments regarding the going concern of the Company as previously discussed in note 1 above. Income taxes and the recovery of deferred taxesthe measurement of income taxes payable and deferred income tax assets and liabilities requires Management to make judgments in the interpretations and application of the relevant tax laws. The actual amount of income taxes only becomes final upon filing and acceptance of the tax return by the relevant authorities, which occurs subsequent to the issuance of these Interim Financial Statements.

Deferred Flow-Through Premium Estimates recorded costs of flow-through share premium liabilities reflect premiums received by the Company on the issue of flow-through shares. The premium is subject to measurement uncertainties and requires the Company to assess the value of non-flow-through shares. The determination is subjective and does not necessarily provide a reliable single measure of the fair value of the premium liability.

Share-based compensation estimating fair value for granted stock options requires determining the most appropriate valuation model which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the option, volatility, dividend yield, and rate of forfeitures and making assumptions about them. The value of the share-based payment expense for the period along with the assumptions and model used for estimating fair value for share-based compensation transactions are disclosed in note 8 of these Interim Financial Statements.

Warrants The Company may issue units in their financings, comprised of common shares and common share purchase warrants. The fair value of the warrants issued on the closing, is estimated, and reflected in the reserve for warrants account until such time that the warrants are exercised, at which time the corresponding amount will be transferred to share capital. If the warrants expire unexercised, the amount recorded is transferred to contributed surplus.

Adoption of New Accounting Standards

Certain pronouncements have been issued by the IASB or the IFRIC that are effective for accounting periods on or after January 1, 2023. The Company has reviewed these updated standards and determined that none of these updates are applicable or consequential to the Company and have been excluded from discussion within these Interim Financial Statements.

3. Cash and Cash Equivalents

	September 30,	December 31,
As at	2023	2022
Cash	$686,486	$44,478
Term deposits		500,000
	$686,486	$544,478

- 8 -

Notes to the Condensed Consolidated Interim Financial Statements (Unaudited) For the three and nine months ended September 30, 2023 and 2022

4. Marketable Securities

On June 8, 2020, the Company received common shares of Blue Thunder Mining Inc. in consideration for the sale of exploration data valued at $320,000.

The following sets out the changes to marketable securities during the year ended December 31, 2022 and the nine months ended September 30, 2023:

Balance, December 31, 2021	$114,148
Unrealized gain (loss) on marketable securities	(81,535)
Balance, December 31, 2022	$32,613
Unrealized gain (loss) on marketable securities	2,083
Balance, September 30, 2023	$34,696

At the end of each reporting period, Management revalues the fair value of the marketable securities held nine months ended September 30, 2023, the Company recorded an unrealized gain of $2,083 (2022 loss of $94,012), using this pricing mechanism.

5. Mineral Property Interests and

Yukon Silver Properties

On June 4, 2021, the Company acquired the rights, title, and 100% interest in three advanced, silver-focused properties located in southeast and south-on for 100% interest in the properties was the issuance of 34,804,718 common shares valued at $4,524,613.

1. Plata

Plata lies within the Tintina Gold Belt and displays many similarities to the Keno Hill Silver Camp located about

180 km to the west. The -largest primary producer of silver with production from approximately thirty-five vein deposits between 1913 and 1989. A reported 2,041 tonnes of hand-sorted material were shipped from high-grade veins on the Plata property to a smelter, yielding about 9,020 kg (290,000 ounces) of silver; this equates to a recovered silver grade of approximately 4,420 grams per tonne (g/t) silver (Turner, 2009).

A total of 308 soil and 56 rock chip samples were collected and are being assayed. Assay results will be released

the exploration targets at Plata and to define drill targets for future testing

1. Groundhog

Silver mineralization was first discovered in the road-accessible Groundhog area in 1956. Since that time over one hundred showings have been discovered in the district by various operators. One of these showings was bulk sampled in 1988 and 1995. This work resulted in the removal of 52.5 tonnes grading approximately 3,800 g/t silver. A rock sample from the property returned 11,663.5 g/t silver (Kammerer and Turner, 2010).

- 9 -

Notes to the Condensed Consolidated Interim Financial Statements (Unaudited) For the three and nine months ended September 30, 2023 and 2022

1. Hy

The road accessible Hy property covers many silver occurrences that were first discovered on the property in 1964. Three mineralized zones were the primary focus of past exploration with the areas between them essentially unexplored. Bulldozer trenching uncovered a chip sample that yielded 370.3 g/t silver over 3.2 metres (Mitchell, 2015).

1. Clear Lake

On March 29, 2022, the Company completed the acquisition of a 100% interest in a deposit in the Whitehorse

n all metals other than silver.

During the nine months ended September 30, 2023, the Company received a grant of $28,438 from the Yukon government to supplement its Yukon E&E.

Nanisivik Project, Nunavut, Canada

In September 2021, the Company map staked 3 claims covering 4,850 hectares on the historic Nanisivik mine on Baffin Island, Nunavut, which produced 17.9 million tons of ore between 1976 and 2002, grading 9% zinc, 0.72% lead, and 35 grams per ton silver. The Company staked claims totaling 5,723 hectares over the Nanisivik mine area in 2022.

In addition to the ore that was mined, previous exploration identified several areas of massive sulphide (principally pyrite) with reported anomalous concentrations of silver as well as, locally, germanium, gallium, and indium.

James Bay Territory, Quebec

The Company holds 45 claims in 7 blocks covering 2,275 hectares in the James Bay area of Quebec. The Company has compiled available data on these properties and is assessing and evaluating next steps.

Thunder Bay, Ontario Properties

Thunder Bay Silver & Cobalt Corp.

On June 7, 2018, the Company acquired Thunder Bay Silver & Cobalt Corp., a private company that holds certain mineral claims in the historic Thunder Bay Silver District ("Thunder Bay"). The property is subject to a 2.5% net y be repurchased for $1,500,000. Effective September 30, 2023, the Company has agreed to focus on other projects.

On July 20, 2021, the Company acquired an 80% interest in certain additional silver properties in Thunder Bay, from Romios Gold Resources ("Romios Gold"), for the issuance of 1,103,506 common shares, valued at $77,245. Effective September 30, 2023, th

proceed with the further exploration of this mineral property interest. Accordingly, it has terminated the agreement with Romios and will transfer the properties back to Romios as required.

Beaver Silver Property

On July 19, 2018, the Company entered into a three-year option agreement to acquire up to a 100% interest in the Beaver Silver Property from Cairngorm Mines Ltd. Consideration for the acquisition included a) cash payments totaling $75,000, b) spending $750,000 on exploration and c) the issuance of common shares with a market value of $410,000. The Company did not meet the acquisition requirements and the Agreement lapsed.

- 10 -