79North : FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED MAY 31, 2022

79NORTH INC.

CONDENSED INTERIM CONSOLIDATED FINANCIAL

STATEMENTS

THREE AND SIX MONTHS ENDED

MAY 31, 2022

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

Notice To Reader

The accompanying unaudited condensed interim consolidated financial statements of 79North Inc. (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.

79North Inc.

Condensed Interim Consolidated Statements of Financial Position

(Expressed in Canadian Dollars)

Unaudited

		As at		As at
		May 31,	November 30,
		2022		2021
ASSETS
Current assets	$	196,432
Cash	$	1,251,425
Receivables and other assets (note 3)		21,262		28,143
		217,694		1,279,568
Property and equipment (note 4)		156,508		176,688
Total assets	$	374,202	$	1,456,256
EQUITY AND LIABILITIES
Current liabilities	$	55,582
Accounts payable and accrued liabilities (notes 5 and 11)	$	235,372
Total liabilities		55,582		235,372
Equity		8,021,919
Share capital (note 6)			8,021,919
Reserve		2,944,543		2,936,404
Accumulated other comprehensive income		62,851		61,541
Deficit		(11,264,884)		(10,353,171)
Equity attributable to the shareholders of the Company		(235,571)		666,693
Non-controlling interest		554,191		554,191
Total equity		318,620		1,220,884
Total equity and liabilities	$	374,202	$	1,456,256

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

Nature of operations and going concern (note 1)

Event after the reporting date (note 13)

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79North Inc.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

(Expressed in Canadian Dollars)

Unaudited

	Three Months	Three Months		Six Months	Six Months
		Ended		Ended		Ended		Ended
		May 31,		May 31,		May 31,		May 31,
		2022		2021		2022		2021
Operating expenses	$	391,725			$	521,523
Exploration and evaluation expenditures (note 10)	$	361,168	$	647,516
Professional fees		64,068		91,284		128,499		146,601
Management and consultants		47,494				94,834
compensation (note 11)			47,145			104,412
Travel		29,762		14,821		41,234		45,289
Office and general		43,221		48,147		85,541		94,940
Foreign exchange loss		3,230		11,365		5,779		15,859
Investor relations		15,520		50,967		26,164		156,401
Share-based payments (note 7)		8,139		23,000		8,139		23,000
Net loss for the period		(603,159)		(647,897)		(911,713)		(1,234,018)
Other comprehensive income (loss)
Items that will be reclassified subsequently to profit or loss:
Cumulative translation adjustment		456		-		1,310		-
Total comprehensive loss for the period	$	(602,703)	$	(647,897)	$	(910,403)	$	(1,234,018)
Basic and diluted net loss per share (note 9)	$	(0.01)	$	(0.01)	$	(0.01)	$	(0.01)
Weighted average number of common shares
outstanding		91,547,241		85,878,941		91,547,241		85,878,941

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

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79North Inc.

Condensed Interim Consolidated Statements of Cash Flows

(Expressed in Canadian Dollars)

Unaudited

		Six Months	Six Months
		Ended		Ended
		May 31,		May 31,
		2022		2021
Operating activities	$	(911,713)
Net loss for the period	$	(1,234,018)
Adjustments for:		20,180
Amortization			13,916
Share-based payments (note 7)		8,139		23,000
Changes in non-cash working capital items:		6,881
Receivables and other assets			90,819
Accounts payable and accrued liabilities		(179,790)		(77,210)
Net cash used in operating activities		(1,056,303)		(1,183,493)
Investing activities		-
Purchase of property and equipment			(30,385)
Net cash used in investing activities		-		(30,385)
Effect of exchange rate changes on cash held by foreign currency		1,310		-
Net change in cash		(1,054,993)		(1,213,878)
Cash, beginning of period		1,251,425		2,870,786
Cash, end of period	$	196,432	$	1,656,908

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

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79North Inc.

Condensed Interim Consolidated Statements of Changes in Equity

(Expressed in Canadian Dollars)

Unaudited

					Accumulated				Total
						other			attributable to		Non-
		Share			comprehensive			shareholders		controlling
		capital		Reserve		income		Deficit	of Company		interest		Total
Balance, November 30, 2020	$	7,360,896	$	2,809,710	$	61,485	$	(7,791,598)	$	2,440,493	$	554,191	$	2,994,684
Share-based payments		-		23,000		-		-		23,000		-		23,000
Total comprehensive loss for the period		-		-		-		(1,234,018)		(1,234,018)		-		(1,234,018)
Balance, May 31, 2021	$	7,360,896	$	2,832,710	$	61,485	$	(9,025,616)	$	1,229,475	$	554,191	$	1,783,666
Balance, November 30, 2021	$	8,021,919	$	2,936,404	$	61,541	$	(10,353,171)	$	666,693	$	554,191	$	1,220,884
Share-based payments		-		8,139		-		-		8,139		-		8,139
Total comprehensive loss for the period		-		-		1,310		(911,713)		(910,403)		-		(910,403)
Balance, May 31, 2022	$	8,021,919	$	2,944,543	$	62,851	$	(11,264,884)	$	(235,571)	$	554,191	$	318,620

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

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