Emergent Metals : 2022 3rd Quarter Financials

EMERGENT METALS CORP.

(FORMERLY EMGOLD MINING CORPORATION)

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONDENSED INTERIM

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2022 AND 2021

Stated in US Dollars

Table of Contents
Notice to Reader	i
Consolidated Statements of Financial Position	1
Consolidated Statements of Comprehensive Income (Loss)	2
Consolidated Statements of Changes in Shareholders' Equity	3
Consolidated Statements of Cashflows	4
Notes to the Condensed Interim Consolidated Financial Statements	5
1)	Nature of operations and going concern	5
2)	Basis of preparation - Statement of Compliance	5
3)	Summary of significant accounting policies	6
4)	Financial instruments and risk management	7
5)	Accounts receivable	10
6)	Marketable securities	10
7)	Exploration and evaluation assets	11
8)	Related party transactions	18
9)	Share capital	18
10)	Equipment	21
11)	Flow-through shares premium liability	22
12)	Leases - right of use assets and lease liabilities	22
13)	Capital disclosures	24
14)	Segmented disclosure	24
15)	Commitment	25
16)	Events after the report period	25

NOTICE TO READER

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

The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management. The unaudited condensed interim consolidated financial statements have been prepared using accounting policies in compliance with International Financial Reporting Standards for the preparation of the condensed interim consolidated financial statements and are in accordance with IAS 34 - Interim Financial Reporting.

The Company's independent auditor has not performed a review of these unaudited condensed interim consolidated financial statements in accordance with standards established by the Canadian Chartered Professional Accountants for a review of interim financial statements by an entity's auditor.

EMERGENT METALS CORP. (FORMERLY EMGOLD MINING CORPORATION)		Statement 1
US Dollars
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
			As at
			September 30		December 31
	Note		2022		2021
ASSETS
Current assets
Cash		$	12,807	$	357,312
Amounts receivable	4		74,378		65,915
Marketable securities	5		347,633		84,320
Prepaid expenses			23,212		37,860
			458,030		545,407
Non-current assets
Advance payments for assets acquisition	6(d)		112,880		118,320
Deposit			4,500		4,500
Equipment	9		49,730		58,784
Exploration and evaluation assets	6		2,505,064		2,910,288
Reclamation bonds			2,148		2,148
Right-of-use asset	11		18,686		29,834
			2,693,008		3,123,874
Total Assets		$	3,151,038	$	3,669,281
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities			619,315		813,681
Deposit received			50		50
Due to related parties	7		60,567		50,353
Flow-through share premium liability	10		54,456		52,910
Lease liability	11		8,939		15,264
Warrant liability	8		1,107,285		385,708
			1,935,480		1,317,966
Lease liability	11		11,270		16,787
Total liabilities			1,946,750		1,334,753
SHAREHOLDERS' EQUITY
Share capital	8		48,283,437		48,302,216
Shares to be cancelled			-		-
Warrants - reserve	8		971,650		971,650
Options - reserve	8		7,865,859		7,865,859
Accumulated Deficit			(55,916,658)		(54,805,197)
			1,204,288		2,334,528
Total liabilities and equity		$	3,151,038	$	3,669,281

Nature of operations and going concern (Note 1)

Commitments (Note 14)

Events after the Reporting Period (Note 15)

Approved and authorized for issuance by the board of directors on November 23, 2022

	"David Watkinson"		"Andrew MacRitchie"
	David Watkinson, Director	Andrew MacRitchie, Director
	The accompanying notes are an integral part of these interim condensed consolidated financial statements	1 | P a g e

EMERGENT METALS CORP. (FORMERLY EMGOLD MINING CORPORATION)	Statement 2
US Dollars

CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

		Three months ended September 30,		Nine months ended September
	Note		2022		2021		2022		2021
EXPENSES
Exploration and Evaluation
Resource property expense	6	$	382,917	$	192,501	$	898,307	$	819,284
General and Administrative
Advertising and promotion			1,076		39,530		84,993		200,753
Amortization	9		3,017		3,814		9,053		11,443
Banking costs			568		267		3,747		605
Depreciation of right-of-use asset	11		3,626		3,809		11,149		21,954
Insurance			9,026		5,894		24,868		17,459
Listing and filing fees			5,997		14,236		41,415		33,840
Management and consulting			44,599		47,703		148,954		255,963
Professional fees			33,998		26,959		91,464		77,836
Office and administration			9,304		5,543		23,515		17,081
Rent			6,538		5,010		17,070		18,063
Travel			6,364		4,540		15,605		14,953
Net Loss Before Other Items			(507,030)		(349,806)		(1,370,140)		(1,489,234)
Other Items
Sublet income			7,225		5,400		18,325		16,350
Lease liability accetion expense	11		(891)		(1,475)		(3,139)		(4,296)
Foreign exchange gain			(42,054)		(11,814)		(20,827)		22,365
Gain on disposition of assets	6(d)		-		-		693,271		-
Gain on disposition of marketable securities			-		-		-		68,832
Fair value adjustment for marketable securities	5		(180,017)		(89,766)		(258,611)		(321,409)
Fair value adjustments for warrant liability	8		29,624		137,323		(170,340)		1,233,966
Income (Loss) and comprehensive income (loss)			(693,143)		(310,138)		(1,111,461)		(473,426)
Earnings (Loss) per share, basic and diluted			(0.04)		(0.02)		(0.07)		(0.04)
Weighted average number of common shares
outstanding - basic and diluted			19,431,887		13,422,066		16,216,270		12,865,478

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

2 | P a g e