Goldsource Mines : GXS 2022 Q2 - FS

GOLDSOURCE MINES INC.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2022

(Unaudited ‐ Expressed in Canadian Dollars)

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORTING

The accompanying condensed consolidated interim financial statements of Goldsource Mines Inc. ("the Company") have been prepared by management in accordance with International Financial Reporting Standards ("IFRS"). Management acknowledges responsibility for the preparation and presentation of the condensed consolidated interim financial statements, including responsibility for significant accounting estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances.

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

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

GOLDSOURCE MINES INC.

TABLE OF CONTENTS

	Page
Condensed Consolidated Interim Statements of Financial Position	4
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss	5
Condensed Consolidated Interim Statements of Cash Flows	6
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity	7
Notes to the Condensed Consolidated Interim Financial Statements	8 - 17

GOLDSOURCE MINES INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (UNAUDITED ‐ EXPRESSED IN CANADIAN DOLLARS)

AS AT

					June 30, 2022			December 31, 2021
	ASSETS
	Current assets
	Cash and cash equivalents	$	5,119,941		$	8,410,211
	Amounts receivable			13,784				22,098
	Prepaid expenses and other			342,669				237,293
	Total current assets			5,476,394				8,669,602
	Non‐current assets
	Deposits (note 3)			268,557				264,243
	Rent deposit			8,900				39,774
	Mineral property (note 3)			6,624,821				6,624,821
	Property, plant and equipment (note 4)			779,021				841,165
	Total non‐current assets			7,681,299				7,770,003
	TOTAL ASSETS	$	13,157,693		$	16,439,605
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Current liabilities
	Accounts payable and accrued liabilities (note 6)	$	393,272		$	546,876
	Lease liability (note 8)			28,340				55,021
	Total current liabilities			421,612				601,897
	Non‐current liabilities
	Rehabilitation provision (note 5)			493,721				409,234
	Total liabilities			915,333				1,011,131
	Shareholders' equity
	Capital stock (note 7)			83,508,886				83,508,886
	Reserves (note 7)			7,573,667				7,733,954
	Deficit			(78,840,193)				(75,814,366)
	Total shareholders' equity			12,242,360				15,428,474
	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	13,157,693		$	16,439,605
Nature and continuance of operations (note 1)
Subsequent Events (note 12)
	Approved by the Board and authorized for issue on August 24, 2022.
	"Ioannis Tsitos"	"Graham C. Thody"
	Director				Director

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

4

GOLDSOURCE MINES INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (UNAUDITED ‐ EXPRESSED IN CANADIAN DOLLARS)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30,

		Three months ended			Six months ended
		2022		2021			2022		2021
Accretion (note 5)	$	5,806	$	11,785	$	10,934	$	16,257
Depreciation (note 4)		9,797		9,463			19,590		18,926
Exploration and evaluation expenditures (note 3)		1,103,936		1,758,949			2,482,150		3,446,701
Foreign exchange gain		(118,090)		(162,030)			(50,883)		(106,282)
General and administrative expenses		41,175		53,765			80,314		83,966
Interest expense (note 8)		1,460		3,691			3,516		7,881
Interest income		(10,144)		(5,182)			(15,495)		(12,967)
Legal settlement (note 9)		‐		‐			84,337		‐
Loss on change in rehabilitation provision (note 5)		52,414		16,512			73,553		28,070
Marketing		77,507		68,387			109,668		91,579
Professional fees (note 6)		37,763		62,669			55,474		81,539
Remuneration (note 6)		165,706		140,667			332,956		309,212
Share‐based compensation (note 7)		11,019		16,595			22,820		34,034
Net and comprehensive loss for the period	$	(1,378,349)	$	(1,975,271)	$	(3,208,934)	$	(3,998,916)
Basic and diluted loss per common share	$	(0.03)	$	(0.04)	$	(0.06)	$	(0.09)
Weighted average number of common shares outstanding		52,289,680		45,932,043			52,289,680		43,198,161

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

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