Fireweed Metals : Quarter 1 Financial Statements 2024

FIREWEED METALS CORP.

(An Exploration Stage Company)

(Unaudited - Expressed in Canadian Dollars)

Condensed Interim Consolidated Financial Statements

March 31, 2024 and 2023

Index

Condensed Interim Consolidated Statements of Financial Position

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss Condensed Interim Consolidated Statements of Cash Flows

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity Notes to the Condensed Interim Consolidated Financial Statements

Notice of non-review of condensed consolidated interim financial statements

In accordance with National Instrument 51-102 Continuous Disclosure Obligations of the Canadian Securities Administrators, notice is given that the attached condensed consolidated interim financial statements for three- month period ended March 31, 2024 have not been reviewed by the Company's auditors.

FIREWEED METALS CORP.

Condensed Interim Consolidated Statements of Financial Position (Unaudited - expressed in Canadian Dollars)

As at

			March 31,	December 31,
			2024	2023
		Note(s)	$	$
Assets
Current assets:
Cash and cash equivalents			15,977,071	19,224,378
Receivables			118,438	283,021
Prepaid expenses			385,386	358,078
			16,480,895	19,865,477
Equipment and right of use assets		5	2,107,962	2,194,203
Reclamation bond			39,596	39,596
Exploration and evaluation assets		4	17,361,564	17,361,564
			35,990,017	39,460,840
Current liabilities:
Accounts payable and accrued liabilities	6,12	1,961,845	2,229,756
Lease liability, short-term		7	456,034	442,621
Purchase obligation		4	3,272,885	3,182,204
Short-term loan payable		8	-	40,000
			5,690,764	5,894,581
Flow-through premium liability		9	-	103,871
Lease liability, long-term		7	195,112	314,276
Rehabilitation provisions		10	595,421	589,088
			6,481,297	6,901,816
Shareholders' equity:
Capital stock		11	108,962,312	108,033,387
Options reserve		11	5,359,323	4,831,622
Warrants reserve		11	183,253	183,253
Deficit			(84,996,168)	(80,489,238)
			29,508,720	32,559,024
			35,990,017	39,460,840
Nature and continuance of operations (Note 1)
Commitment (Note 16)
Subsequent events (Note 17)
On behalf of the Board:
"Peter Hemstead"	Director, Interim CEO and	"Adrian Rothwell"	Director
	President

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

FIREWEED METALS CORP.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited - expressed in Canadian Dollars)

For the three months ended,

		March 31,	March 31,
		2024	2023
	Note(s)	$	$
Expenses
Consulting and management	12	493,671	615,755
Depreciation	5	165,252	14,552
Director and committee fees	12	51,000	42,358
Exploration and evaluation	4	2,571,307	1,148,493
Investor relations and corporate development		289,005	246,421
Interest expense	7	21,656	-
Professional fees		13,297	28,413
Property investigation	4	-	234,703
Share-based compensation	11,12	562,563	321,215
Transfer agent & filing fees		45,756	158,634
General & administrative		330,814	144,629
		(4,544,321)	(2,955,173)
Accretion on rehabilitation provision	10	(6,333)	(2,740)
Amortization of flow-through liability	9	103,871	298,423
Part XII.6 Tax		(193,307)	-
Finance expense on purchase obligation	4	(90,681)	-
Foreign exchange		(3,248)	(2,686)
Interest income		217,089	468,578
Gain on Debt	8	10,000	-
Loss and comprehensive loss for the period		(4,506,930)	(2,193,598)
Loss per share - basic and diluted		(0.03)	(0.02)
Weighted average number of common shares
outstanding - basic and diluted		145,969,843	135,201,032

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

FIREWEED METALS CORP.

Condensed Interim Consolidated Statements of Cash Flows (Unaudited - expressed in Canadian Dollars)

For the three months ended

	March 31,	March 31,
	2024	2023
	$	$
OPERATING ACTIVITIES
Loss for the period	(4,506,930)	(2,193,598)
Adjustment for items not affecting cash:
Amortization of flow-through liability	(103,871)	(298,423)
Accretion on rehabilitation provision	6,333	2,740
Depreciation	165,252	14,552
Finance expense on purchase obligation	90,681	-
Share-based compensation	562,563	321,215
Interest on lease obligations	21,656	-
Change in non-cash working capital items:
Receivables	164,583	9,902
Prepaid expenses	(27,308)	(599,550)
Accounts payable and accrued liabilities	(267,911)	18,011
	(3,894,952)	(2,725,151)
INVESTING ACTIVITIES
Acquisition of equipment	(79,011)	(93,121)
	(79,011)	(93,121)
FINANCING ACTIVITIES
Repayment of CEBA loan	(40,000)	-
Proceeds from warrants exercised	835,001	81,900
Proceeds from options exercised	59,062	-
Lease payments	(127,407)	-
	726,656	81,900
Increase (decrease) in cash	(3,247,307)	(2,736,372)
Cash and cash equivalents, beginning of the period	19,224,378	39,885,979
Cash and cash equivalents, end of the period	15,977,071	37,149,607
Cash	14,687,071	39,985,979
Cash equivalents	1,290,000	-
	15,977,071	39,985,979
Supplemental disclosures with respect to cash flows:
Non-cash investing and financing activities:
Fair value of exercised options	34,862	-
Fair value of exercised finders' warrants	-	21,609

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

FIREWEED METALS CORP.

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Unaudited - expressed in Canadian Dollars)

			Capital Stock
		Shares	Amount	Warrants reserve	Options reserve	Deficit	Total
	Notes	#	$	$	$	$	$
Balance at December 31, 2022		135,191,999	93,379,425	351,145	2,655,682	(47,225,187)	49,161,065
Share-based compensation	11	-	-	-	321,215	-	321,215
Warrants exercised	11	117,000	103,509	(21,609)	-	-	81,900
Loss for the period		-	-	-	-	(2,193,598)	(2,193,598)
Balance at March 31, 2023		135,308,999	93,482,934	329,536	2,976,897	(49,418,785)	47,370,582
Balance at December 31, 2023		145,445,800	108,033,387	183,253	4,831,622	(80,489,238)	32,559,024
Share-based compensation	11	-	-	-	562,563	-	562,563
Options exercised	11	81,800	93,924	-	(34,862)	-	59,062
Warrants exercised	11	1,391,668	835,001	-	-	-	835,001
Loss for the period		-	-	-	-	(4,506,930)	(4,506,930)
Balance at March 31, 2024		146,919,268	108,962,312	183,253	5,359,323	(84,996,168)	29,508,720

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

FIREWEED METALS CORP.

Notes to the Condensed Interim Consolidated Financial Statements For the Three Months Ended March 31, 2024 and 2023 (Unaudited - expressed in Canadian Dollars)

1. Nature and Continuance of Operations
   Fireweed Metals Corp. (the "Company") was incorporated under the Business Corporations Act of the Yukon in Canada on October 20, 2015. The Company is a mineral exploration and development company and is engaged in the acquisition and exploration of mineral assets. At March 31, 2024, the Company had three projects in northern Canada, the Macmillan Pass Project (Yukon), the Mactung Project (Yukon/NWT) and the Gayna River Zinc Project (NWT). The Company is listed on the TSX Venture Exchange and trades under the symbol FWZ in Canada, and on the OTCQB Venture Market under the symbol FWEDF in the USA.
   The Company's head office and principal address is Suite 1020 - 800 West Pender Street, Vancouver, British Columbia, Canada V6C 2V6. The registered and records office is 3081 3rd Avenue, Whitehorse, Yukon, Canada Y1A 4Z7.
   The Company's ability to continue operations is not assured and is dependent upon the ability to obtain necessary financing to meet its liabilities and commitments as they become due, and the ability to generate future profitable production or operations or obtain sufficient proceeds from the disposition thereof. The outcome of these matters cannot be predicted at this time. These condensed interim financial statements do not include adjustments to amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue operations. As at March 31, 2024, the Company had an accumulated deficit of $80,489,238, current assets of $16,480,895 to settle current liabilities of $5,690,764, leaving the Company with a working capital of $13,970,896. However, additional financing will be required to carry out additional exploration and development of its properties. These factors indicate the existence of material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern.
   The condensed interim consolidated financial statements for the period ended March 31, 2024, have been prepared by management, reviewed by the Audit Committee and authorized for issue by the Board of Directors on May 21, 2024.
2. Basis of Presentation and Statement of Compliance
   These condensed interim consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB") for interim information, specifically International Accounting Standards ("IAS") 34 - Interim Financial Reporting. In addition, these condensed consolidated interim financial statements have been prepared using interpretations issued by the International Financial Reporting Interpretation Committee ("IFRIC") in effect at March 31, 2024 and the same accounting policies and methods of their application as the most recent annual financial statements of the Company. These condensed interim consolidated financial statements do not include all disclosures normally provided in the annual financial statements and should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2023. In management's opinion, all adjustments necessary for fair presentation have been included in these condensed interim consolidated financial statements. Interim results are not necessarily indicative of the results expected for the year ending December 31, 2024.
   The condensed interim consolidated financial statements have been prepared on a historical cost basis, except for financial instruments classified as fair value through profit or loss, which are stated at their fair value. All dollar amounts presented are in Canadian dollars unless otherwise specified. In addition, the condensed interim financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

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FIREWEED METALS CORP.

Notes to the Condensed Interim Consolidated Financial Statements For the Three Months Ended March 31, 2024 and 2023 (Unaudited - expressed in Canadian Dollars)

3. Material Accounting Policies

The accounting policies in preparation of these condensed interim consolidated financial statements are consistent with those applied and disclosed in the Company's audited consolidated financial statements for the year ended December 31, 2023.

Principles of Consolidation

These condensed interim consolidated financial statements include the financial statements of Fireweed Metals Corp. and its wholly owned subsidiaries Fireweed Macpass Mining Ltd., Fireweed Mactung Mining Ltd., and Fireweed Gayna River Metals Ltd., incorporated in British Columbia.

Critical accounting judgment

The preparation of these condensed interim financial statements requires management to make judgements regarding the going concern of the Company as discussed in Note 1.

The preparation of these condensed interim financial statements requires making judgments that affect the amounts reported. The most significant accounting judgements that management has made relate to exploration and evaluation assets and potential indicators for impairment. Management makes judgements in reviewing exploration and evaluation assets for indicators of impairment. Management considers, among other things, whether or not (i) the period for which the Company has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed; (ii) substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned; (iii) exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the Company has decided to discontinue such activities in the specific area; and (iv) whether sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale. In considering these factors, management did not identify any impairment indicators for the period ended March 31, 2024.

Key sources of estimation uncertainty

Carrying value and recoverability of exploration and evaluation assets

The carrying amount of the Company's exploration and evaluation assets do not necessarily represent present or future values, and the Company's exploration and evaluation assets have been accounted for under the assumption that the carrying amount will be recoverable. Recoverability is dependent on various factors, including the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development and upon future profitable production or proceeds from the disposition of the mineral properties themselves.

Additionally, there are numerous geological, economic, environmental and regulatory factors and uncertainties that could impact management's assessment as to the overall viability of its properties or to the ability to generate future cash flows necessary to cover or exceed the carrying value of the Company's exploration and evaluation assets.

Share-based compensation

Share-based compensation expense is measured by reference to the fair value of the stock options at the date at which they are granted. Estimating fair value for granted stock options requires determining the most appropriate valuation model which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the option, volatility, dividend yield, and rate of forfeitures and making assumptions about them. The value of the share- based compensation expense for the periods ended March 31, 2024 and 2023 are disclosed in Note 10.

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FIREWEED METALS CORP.

Notes to the Condensed Interim Consolidated Financial Statements For the Three Months Ended March 31, 2024 and 2023 (Unaudited - expressed in Canadian Dollars)

Rehabilitation provision

The calculation of the asset retirement obligation involves significant measurement estimates and assumptions of the amount and timing of reclamation costs and applicable inputs used in the calculation, such as inflation and discount rates. The Company bases its estimates on historical experience, government regulations and assumptions that are believed to be reasonable given the scope of the exploration project. Refer to Note 9 for more details.

4. Exploration and Evaluation Assets and Expenditures Exploration and Evaluation Assets

	MacMillan
	Pass	Gayna River	Mactung	Total
Exploration & Evaluation Assets	$	$	$	$
Acquisition and maintenance costs:
Balance, December 31, 2022	12,655,113	57,752	-	12,712,865
Change in rehabilitation provision	149,310	-	-	149,310
Initial recognition of rehabilitation
provision			45,638	45,638
Cash payments	-	-	904	904
Transfer of deposit	-	-	1,500,000	1,500,000
Purchase obligation	-	-	2,952,847	2,952,847
Balance, December 31, 2023 and March
31, 2024	12,804,423	57,752	4,499,389	17,361,564
Exploration & Evaluation Expenditures
Assaying	174,668	-	174,668	174,668
Camp and field	214,527	-	214,527	214,527
Drilling	254,117	-	254,117	254,117
Engineering	22,058	-	22,058	22,058
Exploration Contracting	2,000	27,500	29,500	2,000
Geological Consulting	20,583	6,600	27,183	20,583
Insurance and other	18,888	-	18,888	18,888
Permitting, Environment, Social	400,775	300	401,075	400,775
Reporting	5,400	-	5,400	5,400
Travel & Support	1,077	-	1,077	1,077
Balance, March 31, 2023	1,114,093	34,400	1,148,493	1,114,093
Assaying	339,687	-	-	339,687
Camp and field	506,088	-	24,641	530,729
Drilling	253,316	-	-	253,316
Engineering	96,056	-	279,973	376,029
Exploration Contracting	-	25,113	-	25,113
Geological Consulting	285,769	-	3,645	289,414
Insurance and other	13,201	-	-	13,201
Permitting, Environment, Social	540,457	-	185,857	726,314
Reporting	8,800	-	-	8,800
Travel & Support	8,704	-	-	8,704
Balance, March 31, 2024	2,052,078	25,113	494,116	2,571,307

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FIREWEED METALS CORP.

Notes to the Condensed Interim Consolidated Financial Statements For the Three Months Ended March 31, 2024 and 2023 (Unaudited - expressed in Canadian Dollars)

Macmillan Pass Project, Yukon, Canada

Summary of Property Acquisitions and Royalties

The Property comprises multiple claim blocks that were acquired and consolidated over several years by Fireweed into the current Macmillan Pass property. Summaries of the underlying claim blocks/properties and royalties are described below.

Fireweed holds 100% interest in various claims comprising the Tom and Jason property. The Jason claims have a third party underlying 3% net smelter return royalty ("NSR") which can be bought out at any time for 1.5% for $1,250,000 and 1.5% for $4,000,000. There are no underlying royalties on the Tom claims.

Fireweed holds 100% interest in various claims comprising the Nidd property. The claims are subject to a 1% NSR royalty and a right of first offer to purchase future production concentrates from the Nidd property.

Fireweed holds 100% interest in various claims comprising the Mac property. These claims are subject to a production royalty of 0.25% NSR on base metals and other non-precious minerals, 1% NSR on silver and other precious metals excluding gold, and 3% NSR on gold produced.

Fireweed holds 100% interest in the MC, MP and Jerry claims. These claims are subject to production royalties of 0.5% NSR on base metals and silver, and 2% NSR on all other metals including gold produced from the MC, MP and Jerry claims. The vendors are entitled to one additional payment of $750,000 or equivalent in Fireweed shares at the Company's option, upon receiving a resource calculation of at least 2.0 million tonnes of indicated (or better) resource on any part of the MC, MP or Jerry claims. Fireweed maintains a right of first refusal on the sale of any NSR royalty from these claims.

Fireweed holds 100% interest in the BR claims and NS claims. These claims are subject to production royalties of 0.5% NSR on base metals and silver, and 2% NSR on all other metals including gold produced from the BR and NS claims. The vendors are entitled to one additional payment of $750,000 or equivalent in Fireweed shares at the Company's option, upon receiving a resource calculation of at least 2.0 million tonnes of indicated (or better) resource on any part of the BR or NS claims. Fireweed will have the right to purchase one-half of these NSR royalties for $2,000,000 at any time prior to the commencement of commercial production. Fireweed maintains a right of first refusal on the sale of any NSR royalty from these claims by Golden Ridge. There is also a pre-exiting third party 3% NSR royalty on any future cobalt production from the BR and NS claims.

Fireweed holds 100% interest in various claims comprising the Sol property. The claims are subject to a 0.5% NSR on all base metals and silver and a 2% NSR on all other metals including gold, which may be mined from the property. There is an additional private third-party royalty consisting of a 2% NSR on production from the Sol Property, of which 1% may be extinguished for $2,000,000.

On January 13, 2022, the Company exercised its option and acquired 100% interest in various claims comprising the Oro property. Payment terms to exercise the option were as follows:

Due Date	Cash	Common Shares
On or before January 18, 2021	$250,000 (paid)	500,000 (issued)
On or before January 13, 2022	$250,000 (paid)	500,000 (issued)
TOTAL	$500,000	1,000,000

The property is subject to a 0.5% NSR on all base metals and silver and a 2% NSR on all other metals including gold, which may be mined from the Oro property.

Mactung Project, Yukon/NWT, Canada

On June 7, 2022, Fireweed signed a binding Letter of Intent to purchase the Mactung Project. On May 3, 2023, the Company and the Government of the Northwest Territories ("GNWT") finalized an assignment and assumption agreement (the "Agreement") for the purchase of the Mactung Project.

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