KORE Mining : Interim Financial Statements

KORE MINING LTD.

Condensed Interim Consolidated Financial Statements June 30, 2022

(Unaudited - Prepared by Management)

NOTICE OF NO AUDITOR REVIEW OF

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

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 Company's independent auditor has not performed a review of these 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.

KORE MINING LTD.

Condensed Interim Consolidated Statements of Financial Position

(Unaudited - Prepared by Management) (Expressed in Canadian dollars)

As at		June 30, 2022	December 31, 2021
		$	$
	Note
Current assets
Cash and cash equivalents		1,427,460	3,592,702
Amounts receivable	6	199,776	186,970
Prepaid expenses		111,034	125,818
Total current assets		1,738,270	3,905,490
Non-current assets
Deposits		233,228	230,985
Equipment		230,878	323,187
Mineral properties	4	1,788,195	1,755,089
Total assets		3,990,571	6,214,751
Current liabilities
Accounts payable		915,237	745,695
Lease liability		149,496	215,657
Total liabilities		1,064,733	961,352
Shareholders' equity
Share capital	5	18,830,312	18,721,695
Warrants		1,353,652	1,353,652
Reserves		2,982,061	2,531,798
Deficit		( 20,175,252)	(17,225,442)
Accumulated other comprehensive loss		( 64,935)	(128,304)
Total shareholders' equity		2,925,838	5,253,399
Total shareholders' equity and liabilities		3,990,571	6,214,751
Going concern	2
Subsequent events	9

Approved by the Board of Directors:
	"James Hynes"		"Scott Trebilcock"
	Director	Director

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

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KORE MINING LTD.

Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

(Unaudited - Prepared by Management)

(Expressed in Canadian dollars except for number of shares)

		For the three months	For the three months	For the six months	For the six months
		ended June 30, 2022	ended June 30, 2021	ended June 30, 2022	ended June 30, 2021
		$	$	$	$
Expenses	Note
	48,269		95,700
Depreciation		18,858	30,820
Exploration and evaluation expenses	4	549,871	759,437	782,826	1,779,451
General and administration		215,834	171,931	324,784	365,992
Management fees and wages	6	362,756	497,084	719,787	763,577
Marketing and professional fees		377,226	499,446	529,873	1,074,591
Share-based payments	5	207,558	223,587	488,880	564,412
		(1,761,514)	(2,170,343)	(2,941,850)	(4,578,843)
Other income (expense)		7,198		3,071
Foreign exchange gain (loss)		(43,204)	(55,516)
Interest and finance income		1,469	1,337	3,169	8,913
Interest expense		(6,520)	(3,395)	(14,200)	(7,192)
Gain on distribution of Karus Gold	1	-	-	-	9,355,106
Net income (loss) for the period		(1,759,367)	(2,215,605)	(2,949,810)	4,722,468
Item that may be subsequently reclassified to net income
(loss)
Cumulative translation adjustment		80,523	(224,994)	63,369	(224,994)
Comprehensive income (loss) for the period		(1,678,844)	(2,440,599)	(2,886,441)	4,497,474
Basic and diluted income (loss) per common share		(0.02)	(0.02)	(0.03)	0.04
Weighted average number of common shares outstanding - basic		115,329,347	107,347,845	115,140,458	106,771,379
Weighted average number of common shares outstanding -
diluted		115,329,347	110,100,449	115,140,458	109,892,259

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

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KORE MINING LTD.

Condensed Interim Consolidated Statements of Cash Flows (Unaudited - Prepared by Management)

(Expressed in Canadian dollars)

	For the six	For the six
	months ended	months ended
	June 30, 2022	June 30, 2021
	$	$
CASH USED IN OPERATING ACTIVITIES	(2,949,810)
Income (loss) for the period	4,722,468
Items not involving cash:	95,700
Depreciation	30,820
Gain on distribution of Karus Gold	-	(9,355,106)
Interest expense	14,200	7,192
Share-based payments	488,880	564,412
Changes in non-cash working capital items:
Amounts receivable	(12,806)	(44,078)
Prepaid expenses and advances	14,784	(9,630)
Accounts payable	169,542	(433,756)
	(2,179,510)	(4,517,678)
FINANCING ACTIVITIES
Payment of lease liabilities	(81,702)	(23,226)
Proceeds from equity financing	-	8,028,098
Proceeds from the exercise of options	70,000	65,250
Issuance costs	-	(677,366)
Repayment of Karus Gold loan	-	500,000
Loan to Karus Gold	-	(500,000)
	(11,702)	7,392,756
INVESTING ACTIVITIES	-
Equipment additions	(58,528)
	-	(58,528)
Impact of changes in foreign exchange	25,970	(156,870)
Change in cash	(2,165,242)	2,659,680
Cash at beginning of the period	3,592,702	4,906,361
Cash at end of period	1,427,460	7,566,041
Supplemental cash flow information:	-
Distribution of assets to Karus Gold	10,435,000
Issuance of warrants as issuance costs	-	121,547

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

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