Gelum Resources : formerly Gelum Capital Ltd.) Financial Statements April 30, 2022

Gelum Resources Ltd. (formerly Gelum Capital Ltd.)

Financial Statements

April 30, 2022

(Expressed in Canadian Dollars)

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of

Gelum Resources Ltd. (formerly Gelum Capital Ltd.)

Opinion

We have audited the accompanying financial statements of Gelum Resources Ltd. (formerly Gelum Capital Ltd.) (the "Company"), which comprise the statements of financial position as at April 30, 2022 and 2021 and the statements of changes in shareholders' equity (deficiency), loss and comprehensive loss, and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies .

In our opinion, these financial statements present fairly, in all material respects, the financial position of the Company as at April 30, 2022 and 2021, and its financial performance and its cas h flows for the years then ended in accordance with International Financial Reporting Standards ("IFRS").

Basis for Opinion

We conducted our audit 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 Financial Statements section of our re port. We are independent of the Company in accordance with the ethical requirements that are relev ant to our audit of the 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 in our audit is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 of the financial statements, which indicates the Company's comprehensive loss was $765,107 for the year ended April 30, 2022. As stated in Note 1, these events and conditions may cast significant doubt on the Company's ability to continue as a going concern.

Other Information

Management is responsible for the other information. The other information obtained at the date of this auditor's report includes Management's Discussion and Analysis.

Our opinion on the 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed, we 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 Financial Statements

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

In preparing the 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 Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and performaudit 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 fromfraud is higher than for one resulting fromerror, 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 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 financial statements, including t he disclosures, and whether the 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 re quirements regarding independence, and to communicate with themall 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 Stephen Hawkshaw.

Vancouver, Canada

Chartered Professional Accountants

August 29, 2022

Gelum Resources Ltd. (formerly Gelum Capital Ltd.)

Statements of Financial Position

As at April 30, 2022 and April 30, 2021

		April 30,	April 30,
		2022	2021
	Note	$	$
Assets
Current assets		677,379	4,799
Cash
Receivables	3	42,144	10,463
Prepaid		13,843	-
		733,366	15,262
Non-current assets		15,232	4,000
Prepaid exploration expenditures	4
Exploration and evaluation assets	4	1,217,657	70,000
		1,232,889	74,000
Total assets		1,966,255	89,262
Liabilities and shareholders' equity (deficit)
Current liabilities		76,954	73,839
Accounts payable and accrued liabilities
Accounts payable to related parties	8	11,715	32,738
Flow-through premium liability	6	124,612	-
Loan payable	10	-	32,076
Non-current liabilities		213,281	138,653
	-	263,651
Convertible note	5,8
Total liabilities		213,281	402,304
Shareholders' equity (deficit)		10,358,878	7,800,194
Share capital	6
Shares to be issued	8	29,200	34,200
Reserves	6	5,960,664	5,607,766
Equity portion of convertible note	5	-	75,459
Deficit		(14,595,768)	(13,830,661)
Total shareholders' equity (deficit)		1,752,974	(313,042)
Total liabilities and shareholders' equity (deficit)		1,966,255	89,262
Nature of operations and going concern	1
Events after the reporting period	13

Approved on behalf of the Board of Directors on August 29, 2022:

"Robert Kopple"

Director

"Hendrik Van Alphen"

Director

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

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