Labrador Iron Mines : Condensed Interim Consolidated Financial Statements for the Three and Nine Months Ended December 31, 2022 and 2021

Labrador Iron Mines Holdings Limited

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Financial Statements

For the three and nine months ended December 31, 2022 and 2021

(Unaudited, expressed in Canadian dollars)

The Company's auditors have not reviewed the unaudited condensed interim consolidated financial statements

for the three and nine months ended December 31, 2022 and 2021.

55 University Avenue, Suite 1805, Toronto, Ontario, Canada M5J 2H7

Tel: [phone] Fax: [phone]

Email:[e-mail]

Website: www.labradorironmines.ca

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Statements of Financial Position (Unaudited, expressed in Canadian dollars)

		December 31, 2022	March 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	105,472		$	309,205
Accounts receivable and prepaid expenses (Note 5)		14,510			23,882
Total current assets		119,982			333,087
Non-current assets
Restricted cash (Note 6)		28,708			28,703
Prepaid exploration expenses		143,772			102,708
Exploration and evaluation assets (Note 7)		26,566,035			26,497,972
Property, plant and equipment (Note 8)		1			1
Total non-current assets		26,738,516			26,629,384
Total assets	$	26,858,498		$	26,962,471
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities (Notes 9, 17 and 18)	$	947,123		$	638,453
Advance from director (Notes 9 and 17)		100,000			-
Total current liabilities		1,047,123			638,453
Non-current liabilities
Accrued liabilities (Note 18)		231,250			231,250
CEBA loan (Note 10)		40,000			40,000
Total non-current liabilities		271,250			271,250
Total liabilities		1,318,373			909,703
SHAREHOLDERS' EQUITY
Share capital (Note 12)		395,687,172			395,687,172
Reserves (Note 13)		1,061,530			1,028,641
Deficit		(383,423,554)			(382,919,850)
Non-controlling interest (Note 11)		12,214,977			12,256,805
Total shareholders' equity		25,540,125			26,052,768
Total liabilities and shareholders' equity		$	26,858,498		$	26,962,471
Going concern (Note 1)
Commitments and contingencies (Note 16)

The financial statements were approved by the Board of Directors on February 9, 2023 and signed on its behalf by:

Signed "John F. Kearney"		Signed "Danesh Varma"
Director		Director

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

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited, expressed in Canadian dollars)

		Three months ended		Nine months ended
		December		December		December			December
		31, 2022	31, 2021	31, 2022	31, 2021
		$	$	$	$
Operating expenses
Site costs	(2,450)	(92,876)	(93,936)	(260,535)
(Loss) before the undernoted	(2,450)	(92,876)	(93,936)	(260,535)
Corporate and administrative costs (Note 10)	(122,796)	(72,840)	(419,686)	(290,920)
Share based compensation (Note 14)	(20,833)	(77,288)	(32,889)	(191,863)
Accretion	-	-	-	(1,223)
Interest earned	117	713	979	2,179
Rehabilitation provision recovery	-		-		-		1,032,567
		(143,512)	(149,415)	(451,596)	550,740
Net comprehensive (loss) income for the
(145,962)	(242,291)	(545,532)	290,205
period
Net comprehensive (loss) income attributable to:
Shareholders of Labrador Iron Mines Holdings	(146,926)	(232,968))	(503,704)	(146,252)
Limited
Non-controlling interest (Note 11)	964		(9,323)		(41,828)		436,457
		(145,962)	(242,291)	(545,532)	290,205
Net (loss) income per share
Basic and diluted	(0.00)	(0.00)	(0.00)	0.00
Weighted average number of shares outstanding
Basic	162,364,427	162,364,427	162,364,427	162,364,427
Diluted	162,364,427	162,364,427	162,364,427	165,051,473

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

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Statements of Cash Flows (Unaudited, expressed in Canadian dollars)

	Three months ended		Nine months ended
	December 31,		December 31,		December 31,		December 31,
	2022	2021	2022	2021
	$	$	$	$
Cash (used in) operating activities
Net (loss) income for the period	(145,962)	(242,291)	(545,532)	290,205
Items not involving cash:

Share based compensation (Note 14) Accretion

Interest receivable Rehabilitation provision recovery

Changes in working capital

Cash (used in) operating activities

Cash provided by (used in) investing activities

Investment in exploration and evaluation assets (Note 7)

Performance of site rehabilitation

Release of restricted cash

Cash provided by (used in) investing activities

Cash provided by financing activities

20,833	77,288	32,889	191,863
-	-	-	1,223
52	(764)	(5)	(1,247)
-	-	-	(1,032,567)
115,557		(27,484)		276,978		233,717
(9,520)	(193,251)	(235,670)	(316,806)

-	-	(68,063)	(9,595)
-	-	-	(113,723)
-	179,171	-	179,171
-	179,171	(68,063)	55,853

Advance from director (Note 9)	100,000	-	100,000	-
Cash provided by financing activities
100,000	-	100,000	-
Changes in cash and cash equivalents	90,480	(14,080)	(203,733)	(260,953)
Cash and cash equivalents, beginning	14,992		81,183		309,205		328,056
Cash and cash equivalents, ending	105,472	67,103	105,472	67,103
Cash and cash equivalents consist of:
Cash	105,295	66,901	105,295	66,901
Cash equivalents	177	202	177	202
	105,472	67,103	105,472	67,103

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

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Unaudited, expressed in Canadian dollars)

											Non-Controlling			Shareholders'
	Share Capital		Reserves			Deficit			Interest			Equity
	Number		Amount			Amount			Amount			Amount			Total
Balance, March 31, 2021	162,364,427	$	395,687,172	$	699,491	$	(382,609,000)	$	12,044,109	$	25,821,772
Vesting of RSUs (Note 13)	-		-			191,863			-			-			191,863
Net (loss) income for the period	-		-			-			(146,252)			436,457			290,205
Balance, December 31, 2021	162,364,427		395,687,172			891,354			(382,755,252)			12,480,566			26,303,840
Vesting of RSUs (Note 13)	-		-			137,287			-			-			137,287
Net (loss) for the period	-		-			-			(164,598)			(223,761)			(388,359)
Balance, March 31, 2022	162,364,427		395,687,172			1,028,641			(382,919,850)			12,256,805			26,052,768
Vesting of RSUs (Note 13)	-		-			32,889			-			-			32,889
Net (loss) for the period	-		-			-			(503,704)			(41,828)			(545,532)
Balance, December 31, 2022	162,364,427	$	395,687,172		$	1,061,530		$	(383,423,554)		$	12,214,977		$	25,540,125

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