Friday Dog : YE January 31, 2022

FRIDAY'S DOG HOLDINGS INC.

(formerly Cerro Mining Corp.)

Consolidated Financial Statements

Years Ended January 31, 2022 and 2021

Expressed in Canadian dollars

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of Friday's Dog Holdings Inc. (formerly Cerro Mining Corp.)

Opinion

We have audited the consolidated financial statements of Friday's Dog Holdings Inc. (formerly Cerro Mining Corp.) (the "Company"), which comprise the consolidated statements of financial position as at January 31, 2022 and 2021, and the consolidated statements of operations and comprehensive loss, changes in shareholders' equity (deficiency), and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at January 31, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards.

Basis for Opinion

We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 in the consolidated financial statements, which indicates that the Company has not generated any revenues from operations and has negative cash flow from operating activities during the year ended January 31, 2022 and, as of that date, the Company has an accumulated deficit of $50,804,215. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other Information

Management is responsible for the other information. The other information comprises the information included in the Management's Discussion and Analysis, but does not include the consolidated financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, and in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditor's report is Lonny Wong.

Saturna Group Chartered Professional Accountants LLP

Vancouver, Canada

May 31, 2022

Friday's Dog Holdings Inc.

(formerly Cerro Mining Corp.)

Consolidated Statements of Financial Position Expressed in Canadian dollars

		January 31	January 31,
		2022	2021
	Notes	$	$
ASSETS
Current
Cash		539,987	278,355
Restricted cash	6	9,285,899	-
Marketable securities	3	1,463	4,225
GST receivable		23,484	4,761
Total current assets		9,850,833	287,341
LIABILITIES
Current
Trade payables and accrued liabilities		169,858	51,222
Total current liabilities		169,858	51,222
SHAREHOLDERS' EQUITY
Share capital	7	42,877,051	42,228,051
Subscription receipts	7	9,224,483	-
Share-based payment reserve		9,263,967	9,263,967
Accumulated other comprehensive loss		(880,311)	(877,549)
Deficit		(50,804,215)	(50,378,350)
Total shareholders' equity		9,680,975	236,119
Total liabilities and shareholders' equity		9,850,833	287,341

Nature of operations and going concern (note 1)

Subsequent event (note 12)

Approved and authorized for issue by the board of directors on May 31, 2022:

"Ali Sodagar"		"Anthony Paterson"
Ali Sodagar, Director		Anthony Paterson, Director

(The accompanying notes are an integral part of these consolidated financial statements)

3

Friday's Dog Holdings Inc.

(formerly Cerro Mining Corp.)

Consolidated Statements of Operations and Comprehensive Loss Expressed in Canadian dollars

Year ended January 31		2022	2021
	Notes	$	$
General and administrative expenses
Exploration and evaluation costs		-	2,765
General and administrative		1,699	(517)
Management fees	8	18,150	18,304
Professional fees		389,926	52,951
Transfer agent and filing fees		36,511	17,099
		(446,286)	(90,602)
Other items
Finance costs		-	(3,245)
Foreign exchange loss		-	(4,869)
Gain on dissolution of subsidiary		10,522	-
Gain on settlement of debt		-	24,006
Gain on sale of subsidiary	5	-	132,779
Interest income		9,899	-
		20,421	148,671
Net income (loss) for the year		(425,865)	58,069
Items that will not be reclassified to income (loss):
Unrealized loss on marketable securities		(2,762)	(325)
Comprehensive income (loss) for the year		(428,627)	57,744
Comprehensive income (loss) per share, basic and diluted		(0.02)	0.00
Weighted average common shares outstanding,
basic and diluted		24,422,011	14,375,077

(The accompanying notes are an integral part of these consolidated financial statements)

4