Rupert Resources : Financial Statements for 3 months and 9 months ended November 2021

RUPERT RESOURCES LTD.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED

NOVEMBER 30, 2021

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying unaudited condensed interim consolidated financial statements of Rupert Resources Ltd. (the "Company") are the responsibility of management and the Board of Directors.

The unaudited condensed interim consolidated financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with the accounting policies disclosed in the notes to the unaudited condensed interim consolidated financial statements. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the statement of financial position date. In the opinion of management, the unaudited condensed interim consolidated financial statements have been prepared within acceptable limits of materiality and are in accordance with International Accounting Standard 34 - Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards appropriate in the circumstances.

Management has established processes, which are in place to provide it sufficient knowledge to support management representations that it has exercised reasonable diligence that (i) the unaudited condensed interim consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of, and for the periods presented by, the unaudited condensed interim consolidated financial statements; and (ii) the unaudited condensed interim consolidated financial statements fairly present in all material respects the financial condition, financial performance and cash flows of the Company, as of the date of and for the years presented by the unaudited condensed interim consolidated financial statements.

The Board of Directors is responsible for reviewing and approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the unaudited condensed interim consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

NOTICE TO READER

The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of management. The unaudited condensed interim consolidated financial statements have not been reviewed by the Company's auditors.

Rupert Resources Ltd.

Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian Dollars)

(Unaudited)

			November 30,		February 28,
As at			2021		2021
ASSETS
Current assets		$	49,324,781
Cash and cash equivalents (note 3)	$	21,724,305
Marketable securities (notes 4 and 8)		425,000		665,000
Prepaids and sundry receivables (note 5)		606,318		585,971
				50,356,099		22,975,276
Non-current assets			1,307,043
Restricted cash (note 6)				1,378,394
Buildings and equipment (note 7)			3,202,810		3,144,317
Exploration and evaluation assets (note 8)		61,515,308		47,460,493
			$	116,381,260	$	74,958,480
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities		$	2,828,660
Amounts payable and accrued liabilities (notes 9 and 14)	$	3,499,898
				2,828,660		3,499,898
Non-current liabilities			3,337,140
Asset retirement obligation (note 10)			3,534,987
				6,165,800		7,034,885
Shareholders' Equity			157,121,527
Share capital (note 11)				106,607,122
Contributed surplus (note 11)			7,455,947		7,304,431
Warrants (note 11)			3,086,786		3,086,786
Cumulative translation adjustment			(2,078,938)		728,958
Equity portion of convertible debentures		75,700		75,700
Deficit			(55,445,562)		(49,879,402)
				110,215,460		67,923,595
Total liabilities and shareholders' equity	$	116,381,260	$	74,958,480
Nature of Operations (note 1)
Commitments and Contingencies (note 16)
Subsequent Events (note 17)
Approved on behalf of the Board:
(Signed) "Gunnar Nilsson"		Director
(Signed) "James Withall"		Director

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

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Rupert Resources Ltd.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars)

(Unaudited)

		Three Months Ended		Nine Months Ended
		November 30,		November 30,
		2021		2020		2021		2020
Operating expenses	$	1,187,762			$	3,265,487
General and administrative expenses (note 12)	$	750,122	$	2,192,877
Share-based payments (note 11)		773,316		564,213		2,129,873		1,300,493
Loss before other items		(1,961,078)		(1,314,335)		(5,395,360)		(3,493,370)
Depreciation (note 7)		-		(7)		-		(20)
Write-down of property (note 8)		-		(3,046,682)		-		(3,046,682)
Unrealized gain (loss) on marketable securities		55,000				(240,000)
(note 4)			-			-
Accretion and interest expense (note 10)		-		(2,594)		-		(5,171)
Other income		1,972		-		7,634		8,789
Net (loss) for the period		(1,904,106)		(4,363,618)		(5,627,726)		(6,536,454)
Other comprehensive (loss) gain
Item that will be reclassified subsequently to income
Exchange differences on translating foreign		(1,558,047)				(2,807,896)
operations			(171,887)			1,853,393
Net (loss) and comprehensive (loss) for the period	$	(3,462,153)	$	(4,535,505)	$	(8,435,622)	$	(4,683,061)
Basic and diluted net (loss) per share (note 13)	$	(0.01)	$	(0.03)	$	(0.03)	$	(0.04)
Weighted average number of common shares
outstanding - basic and diluted (note 13)		176,764,788		164,618,563		172,110,048	159,736,848

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

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Rupert Resources Ltd.

Condensed Interim Consolidated Statements of Cash Flows (Expressed in Canadian Dollars)

(Unaudited)

Nine Months Ended November 30,		2021		2020
Operating activities	$	(5,627,726)
Net loss for the period	$	(6,536,454)
Adjustments for:		2,129,873
Share-based payments			1,300,493
Unrealized loss on marketable securities		240,000		-
Depreciation		-		20
Exchange differences on translating foreign operations		(299,294)		359,979
Accretion expense		-		5,171
Write-down of property		-		3,046,682
Changes in non-cash working capital items:		(20,347)
Prepaids and sundry receivables			16,476
Amounts payable and accrued liabilities		(671,238)		1,128,097
		(4,248,732)		(679,536)
Financing activities		2,002,790
Proceeds from exercise of options			1,021,700
Proceeds from private placement and prospectus offering		48,654,000		25,600,000
Share issuance costs		(2,059,176)		(1,396,659)
		48,597,614		25,225,041
Investing activities		(16,513,835)
Expenditure on exploration and evaluation assets			(10,540,853)
Purchase of buildings and equipment		(234,571)		(285,558)
		(16,748,406)		(10,826,411)
Net change in cash		27,600,476		13,719,094
Cash, beginning of period		21,724,305		14,313,403
Cash, end of period	$	49,324,781	$	28,032,497

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

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