Auxico Resources Canada : CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022

AUXICO RESOURCES CANADA INC.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NINE-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022

UNAUDITED, EXPRESSED IN CANADIAN DOLLARS

The accompanying notes form an integral part of the consolidated financial statements.

AUXICO RESOURCES CANADA INC.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NINE-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022

UNAUDITED, EXPRESSED IN CANADIAN DOLLARS

Contents

Condensed Interim Consolidated Financial Statements
Non-auditor involvement	2
Interim Consolidated Statements of Financial Position	3
Interim Consolidated Statements of Income (loss) and Comprehensive Income (Loss)	4
Interim Consolidated Statements of Changes in Equity	5
Interim Consolidated Statements of Cash Flows	6
Notes to the Interim Consolidated Financial Statements	7-28

NOTICE OF NO AUDITOR REVIEW OF CONDENSED 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 condensed interim consolidated financial statements of the Company for the interim periods ended June 30, 2023 and 2022 have been prepared in accordance with international accounting standards for interim financial reporting under IAS 34. The accompanying unaudited condensed interim consolidated financial statements are the responsibility of the Company's management.

The Company's independent auditors, BDO, Chartered Accountants, have not performed a review of these interim financial statements in accordance with the standards established for a review of condensed interim financial statements by an entity's auditor.

August 29, 2023

/s/ Pierre Gauthier President & CEO

The accompanying notes form an integral part of the consolidated financial statements.

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AUXICO RESOURCES CANADA INC.

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian Dollars, other than share numbers)

As at,	June 30, 2023	September 30, 2022
		(Audited)
	$	$
ASSETS
Current assets
Cash	65,087	2,115,889
Receivables (notes 6 & 21)	153,903	676,939
Promissory notes (note 7)	-	200,000
Prepaid and deposits (note 8)	326,152	185,526
Advances to directors (note 21)	3,098	3,098
Advance to companies controlled by a director (note 21)	-	364,464
	548,240	3,545,916
Non-current assets
Equipment (note 10)	52,550	81,662
Prepaid and deposits (note 8)	500,000	500,000
Other assets (note 9)	684,120	680,019
Exclusive sales agency distribution agreement (note 11)	280,575	561,150
Conversion right (note 11)	662,000	693,000
TOTAL ASSETS	2,727,485	6,061,747
LIABILITIES
Current liabilities
Accounts payable and accruals	1,414,412	1,977,326
Due to companies owned by a director	148,857	-
Farm-out agreement debt (note 12)	779,600	798,280
Finder's fees payable (note 13)	45,676	218,724
Convertible debentures (note 14)	6,274,651	20,639,170
	8,663,196	23,633,500
Non-current liabilities
Convertible debentures (note 14)	-	12,716,048
Total Liabilities	8,663,196	36,349,548
SHAREHOLDERS' DEFICIENCY
Issued capital	39,863,768	29,947,709
Deficit	(45,800,570)	(60,236,601)
Equity attributable to non-controlling interests	1,091	1,091
Total equity (deficiency)	(5,935,711)	(30,287,801)
TOTAL LIABILITIES & EQUITY	2,727,485	6,061,747

Going Concern (note 2), Commitments (note 25) and subsequent events (note 27)

Approved on behalf of the Board:

Pierre Gauthier, Director

Mark Billings, Director

The accompanying notes form an integral part of the consolidated financial statements.

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AUXICO RESOURCES CANADA INC.

INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Expressed in Canadian Dollars, other than share numbers)

		Three‐month periods	Nine‐month periods
		ended June 30	ended June 30
		2023	2022	2023	2022
			(Restated note 26)		(Restated note 26)
		$	$	$	$
Sales commissions	-	82,000	264,091	82,000
Selling and administrative expenses (note 22)	850,067	4,403,070	3,468,918	7,501,232
Loss before finance income,
finance costs and income taxes	(850,067)	(4,321,070)	(3,204,827)	(7,419,232)
Finance income	-	5,056	4,822	7,286
Finance earnings (costs) (note 23)	(599,683)	(488,825)	(1,853,239)	(1,083,792)
Gain on debentures conversion	-	-	51,269	-
Gain on debentures extension	-	-	67,179	-
Fair value adjustment of the
embedded derivatives (note 14)	(687,176)	(3,874,616)	19,370,827	42,606,031
Net finance earnings (losses)	(1,286,859)	(4,358,385)	17,640,858	41,529,525
Net income (loss) and
comprehensive income (loss)	(2,136,926)	(8,679,455)	14,436,031	34,110,293
Net income (loss)and comprehensive income (loss)
attributable to:
Shareholders	(2,136,926)	(8,680,952)	14,436,031	34,108,796
Non-controlling interest	-	1,497	-	1,497
		(2,136,926)	(8,679,455)	14,436,031	34,110,293
Income (loss) per share to equity holders
of Auxico Resources Canada Inc.
Basic	(0.03)	(0.12)	0.19	0.50
Diluted (note 16)	(0.02)	(0.13)	0.17	0.50
Weighted average number
of shares outstanding
Basic	80,695,613	70,944,066	76,715,646	68,031,735
Diluted (note 16)	90,808,208	69,173,995	82,917,516	67,814,543

The accompanying notes form an integral part of the consolidated financial statements.

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