TVI Pacific : 2023 Financial Statements Q2

Interim Consolidated Financial Statements

For the Six Months Ended

June 30, 2023 and 2022

(Unaudited)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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

The accompanying unaudited consolidated interim financial statements of TVI Pacific Inc. for the interim reporting period ended June 30, 2023, have been prepared in accordance with IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board, and are the responsibility of the Company's management.

The Company's independent auditors, PricewaterhouseCoopers LLP, have not performed a review of these consolidated interim financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada ("CPA Canada") for a review of interim financial statements by an entity's auditor.

TVI Pacific Inc.

2

June 30, 2023

TVI Pacific Inc.

Unaudited Interim Consolidated Statements of Financial Position June 30, 2023

(in Canadian dollars)

	Notes		June 30, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	4	$	68,376	$	134,886
Accounts receivable	5		21,937		11,512
Due from related parties	6(a)		3,012		3,071
Prepaid expenses			6,521		9,093
Total current assets			99,846		158,562
Non-current assets:
Investment in joint venture	8		25,735,959		28,984,522
Property and equipment			13,013		15,739
Other assets			5		5
Total non-current assets			25,748,977		29,000,266
Total assets		$	25,848,823	$	29,158,828
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	9	$	636,454	$	350,894
Due to related parties	6(b)		2,299,639		1,960,061
Total current liabilities			2,936,093		2,310,955
Non-current liabilities:
Retirement benefit payable	10		67,450		68,326
Deferred tax liability	11		392,409		397,507
Total non-current liabilities			459,859		465,833
Total liabilities			3,395,952		2,776,788
Equity attributable to shareholders of the Company:
Share capital	12(b)		33,034,277		33,016,445
Contributed surplus	12(d)		7,326,748		7,074,580
Deficit			(12,304,684)		(8,466,859)
Translation reserves			(5,603,470		(5,242,126)
Total equity			22,452,871		26,382,040
Total liabilities and equity		$	25,848,823	$	29,158,828

Commitment (note 18)

Subsequent Events (note 19)

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

On behalf of the Board:

"Clifford M. James"	"C. Brian Cramm"
Clifford M. James, Director	C. Brian Cramm, Director

TVI Pacific Inc.

3

June 30, 2023

TVI Pacific Inc.

Unaudited Interim Consolidated Statements of Comprehensive Income (Loss) June 30, 2023 and 2022

(in Canadian dollars)

			Three months ended June 30		Six months ended June 30
	Notes		2023		2022		2023		2022
Expenses:
Depreciation expense		$	1,166	$	1,484	$	2,703	$	2,824
Administrative and general costs	14		543,101		431,258		881,211		755,693
Total expenses			544,267		432,742		883,914		758,517
Operating loss			(544,267)		(432,742)		(883,914)		(758,517)
Other income (expenses):
Interest income			45		224		227		310
Interest expense			(42,437)		(16,303)		(81,900)		(30,105)
Foreign exchange gain (loss)	16		(246)		10,016		(743)		8,955
Other gains	17		-		-		-		200,610
Share of income of joint venture	8		(1,076,818)		2,332,882		(2,871,495)		3,339,163
Other income (expenses), net			(1,119,456)		2,326,819		(2,953,911)		3,518,933
Net income (loss) before income tax			(1,663,723)		1,894,077		(3,837,825)		2,760,416
Net income (loss)			(1,663,723)		1,894,077		(3,837,825)		2,760,416
Other comprehensive income (loss):
Items that may be reclassified to profit or
loss in subsequent periods:
Foreign currency translation adjustment -
foreign operations			26,916		(2,646,964)		15,724		34,931
Foreign currency translation adjustment -
joint venture			(1,195,241)		(912,535)		(377,068)		(2,376,965)
Comprehensive income (loss)		$	(2,832,048)	$	(1,665,422)	$	(4,199,169)		$ 418,382
Basic income (loss) per share	13	$	(0.003)	$	0.003	$	(0.006)	$	0.004
Diluted income (loss) per share	13		(0.003)		0.003		(0.006)		0.004
Weighted average number of common shares,	13		664,126,704		656,894,064	664,126,704		656,987,039
basic
Weighted average number of common shares,	13		681,312,547		679,668,013	681,312,547		679,668,013
diluted

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

TVI Pacific Inc.

4

June 30, 2023

TVI Pacific Inc.

Unaudited Interim Consolidated Statements of Changes in Equity June 30, 2023 and 2022

(in Canadian dollars)

							Contributed						Accumulated
			Share capital									other			Total
						surplus			Deficit
			(Note 12b)								comprehensive			equity
						(Note 12d)
													income (loss)
January 1, 2023	$	33,016,445		$	7,074,580	$	(8,466,859)	$	(5,242,126)	$	26,382,040
Transactions with owners
	Options exercised (note 12(c))			17,832				252,168										270,000
Total transaction with owners			17,832				252,168										270,000
Comprehensive income/(loss)
	Net income (loss)			-				-			(3,837,825)				-		(3,837,825)
	Other comprehensive income (loss):
	Foreign currency translation adjustment			-				-			-				(361,344)		(361,344)
Total comprehensive income (loss)			-				-			(3,837,825)				(361,344)		(4,199,169)
June 30, 2023	$	33,034,277	$	7,326,748	$	(12,304,684)		$	(5,603,470)	$	22,452,871
January 1, 2022	$	33,016,445	$	7,074,580	$	(8,973,285)	$	(4111,679)	$	27,006,061
Comprehensive income (loss)
	Net income			-				-			2,760,416				-		2,760,416
	Other comprehensive income (loss):
	Foreign currency translation adjustment			-				-			-				(2,342,034)		(2,342,034)
Total comprehensive income (loss)			-				-			2,760,416				(2,342,034)		418,382
June 30, 2022	$	33,016,445	$	7,074,580		$	(6,212,869)		$	(6,453,713)	$	27,424,443

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

TVI Pacific Inc.

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June 30, 2023