Mirasol Resources : Q1 Financial Statements and MD&A for September 30, 2023

MIRASOL RESOURCES LTD.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

September 30, 2023

(Unaudited - Expressed in Canadian Dollars)

NOTICE OF NO AUDITOR REVIEW OF

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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

The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.

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

Mirasol Resources Ltd.

Condensed Consolidated Interim Statements of Financial Position

As of September 30, 2023, and June 30, 2023

(Expressed in Canadian Funds, except where indicated)

ASSETS		September 30,		June 30,
	2023		2023
Current Assets
Cash and cash equivalents (Note 3)	$	6,303,703	$	8,123,682
Prepaid, receivables and advances (Note 4)		217,492		203,786
Current portion of lease receivable (Note 7)		38,064		38,064
Due from JV partner		23,726		16,693
Marketable securities (Note 5)		83,024		155,669
Non-Current Assets		6,666,009		8,537,894
Equipment		116,198		116,596
Right-of-use assets (Note 6)		41,159		46,966
Non-current portion of lease receivable (Note 7)		15,287		22,618
Exploration and evaluation assets (Note 8)		1,467,378		1,467,378
Total Assets		1,640,022		1,653,558
$	8,306,031	$	10,191,452
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities	$	691,804	$	744,547
Current portion of lease liabilities (Note 7)		88,800		87,690
Long-Term Liabilities		780,604		832,237
Non-current portion of lease liabilities (Note 7)		35,991		53,115
Total Liabilities	$	816,595	$	885,352
EQUITY
Share Capital (Note 10)	$	67,592,500	$	67,592,500
Reserves		19,677,813		19,578,061
Accumulated Other Comprehensive Loss		(34,054)		(29,756)
Deficit		(79,746,823)		(77,834,705)
		7,489,436		9,306,100
Total Liabilities and Equity	$	8,306,031	$	10,191,452

Nature of business (Note 1) Commitments (Note 12)

On Behalf of the Board:

• Patrick Evans "
• Nick DeMare "

• Director
• Director

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

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Mirasol Resources Ltd.

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss

For the Three Months Ended September 30,

(Expressed in Canadian Funds, except where indicated)

		2023		2022
Expenses	$
Exploration expenditures	1,490,474	$	837,125
Business development		62,409		45,856
Marketing and investor communications		50,452		28,103
Management fees (Note 9a i)		97,827		99,177
Office and miscellaneous		60,980		40,950
Professional fees (Note 9b)		85,691		19,158
Director fees (Note 9a iii)		25,200		25,200
Travel		11,878		5,556
Transfer agent and filing fees		4,521		2,040
Share-basedpayments (Note 9a ii,10b ii,10c)		99,752		91,126
Depreciation		14,877		16,536
		(2,004,061)		(1,210,827)

Interest income Interest expense (Note 7) Foreign exchange (loss) gain

Unrealized loss on marketable securities fair value (Note 5) Other income

165,974 169,578

(5,076)(7,218)

(11,474) 270,689

(72,645) (311,338)

15,16413,119

91,943 134,830

Loss for the Period	$	(1,912,118)	$	(1,075,997)
Other Comprehensive Loss
Items that will not be reclassified to profit and loss:
Exchange differences on translation of foreign operations		(4,298)		(12,056)
Loss and Comprehensive Loss for the Period	$	(1,916,416)	$	(1,088,053)
Loss per Share (Basic and Diluted)	$	(0.03)	$	(0.02)
Weighted Average Number of Shares Outstanding
(Basic and Diluted)		65,650,060		54,043,304

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

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Mirasol Resources Ltd.

Condensed Consolidated Interim Statement of Changes in Equity

As at September 30

(Expressed in Canadian Funds, except where indicated)

	Share Capital		Accumulated
	Number of	Common		Other		Total
	Common	Shares		Comprehensive
	Shares	Amount	Reserves	Loss	Deficit	Equity
Balance - June 30, 2022	54,015,043	$57,502,177	$18,362,103	$(24,558)	$(68,037,878)	$7,801,844
Treasury shares repurchased (Note 9)	-	(13,650)	-	-	-	(13,650)
Shares issued for stock options exercised	50,000	17,000	-	-	-	17,000
Share-based payments (Note 9)	-	-	91,126	-	-	91,126
Foreign currency translation adjustment	-	-	-	(12,056)	-	(12,056)
Loss for the period	-	-	-	-	(1,075,997)	(1,075,997)
Balance - September 30, 2022	54,065,043	$57,505,527	$18,453,229	$(36,614)	$(69,113,875)	$6,808,267
Balance - June 30, 2023	65,650,060	$67,592,500	$19,578,061	$(29,756)	$(77,834,705)	$9,306,100
Share-based payments (Note 9)	-	-	99,752	-	-	99,752
Foreign currency translation adjustment	-	-	-	(4,298)	-	(4,298)
Loss for the period	-	-	-	-	(1,912,118)	(1,912,118)
Balance - September 30, 2023	65,650,060	$67,592,500	$19,677,813	$(34,054)	$(79,746,823)	$7,489,436

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

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Mirasol Resources Ltd.

Condensed Consolidated Interim Statement of Changes in Cash Flows

For the Three Months Ended September 30 (Expressed in Canadian Funds, except where indicated)

		2023		2022
Operating Activities
Loss for the period	$	(1,912,118)	$	(1,075,997)
Adjustments for:
Interest income		(165,974)		(172,703)
Interest expense		5,076		7,218
Depreciation		14,877		16,536
Other income (expense)		204		1,528
Share-based payments		99,752		91,126
Unrealized loss on marketable securities fair value		72,645		311,338
Unrealized foreign exchange		9,584		(277,151)
Changes in non-cash working capital items:		(1,875,954)		(1,098,105)
Receivables and advances		37,624		(15,905)
Accounts payable and accrued liabilities		(52,743)		73,920
Advance from joint venture partner		7,033		65,993
Cash used in operating activities		(1,884,040)		(974,097)
Investing Activities
Purchase of equipment		(8,672)		-
Interest received		112,255		155,437
Cash provided by investing activities		103,583		155,437
Financing Activity
Lease payments		(11,575)		(11,733)
Stock options exercised		-		17,000
Treasury shares repurchased		-		(13,650)
Cash used in operating activities		(11,575)		(8,383)
Effect of Exchange Rate Change on Cash and Cash Equivalents
	(27,947)		254,841
Change in Cash and Cash Equivalents		(1,819,979)		(572,202)
Cash and Cash Equivalents - Beginning of the period		8,123,682		5,698,539
Cash and Cash Equivalents - End of the period	$	6,303,703	$	5,126,337
Cash and Cash Equivalents Consist of:
Cash	$	1,257,703	$	1,584,937
Cash equivalents	$	5,046,000	$	3,541,400
	$	6,303,703	$	5,126,337
Supplemental Schedule of Non-Cash Investing and Financing
Transactions:
Cash paid during the period for interest	$	5,076	$	7,218
Cash paid during the period for income taxes	$	-	$	-

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

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Mirasol Resources Ltd.

Notes to the Condensed Consolidated Interim Financial Statements

For the Three Months Ended September 30, 2023

(Expressed in Canadian Funds, except where indicated)

1. Nature of Business
   Mirasol Resources Ltd. ("Mirasol" or the "Company") is incorporated under the laws of the Province of British Columbia, Canada. The Company's corporate registered and records office is located at 400 - 725 Granville Street, Vancouver, British Columbia and the head office is located at 1150-355 Burrard Street, Vancouver, British Columbia.
   Mirasol engages in the acquisition and exploration of mineral properties, principally located in Chile and Argentina, with the objective of identifying mineralized deposits economically worthy of subsequent development, mining or sale.
   The business of mining and exploration involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The Company has no source of revenue and has significant cash requirements to meet its administrative overhead and maintain its exploration and evaluation assets. The recovery of the Company's exploration and evaluation assets is dependent on the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development of these properties, and future profitable production or proceeds from disposition of exploration and evaluation assets. While the Company has been successful in the past with its financing efforts, there can be no assurance that it will be able to do so in the future.
   Recent global issues, including the ongoing COVID-19 pandemic and geo-political conflicts have adversely affected workplaces, economies, supply chains, and financial markets globally. It is not possible for the Company to predict the duration or magnitude of the adverse results of these issues and their effects on the Company's business or results of operations this time.
   Management estimates that the Company has sufficient working capital to maintain its operations and activities for at least the next twelve months.
2. Basis of Presentation Statement of compliance
   The condensed consolidated interim financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). These condensed consolidated interim financial statements were prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements. These condensed consolidated interim financial statements should be read in conjunction with the Company's annual consolidated financial statements for the year ended June 30, 2023.
   The Board of Directors approved the condensed consolidated interim financial statements on November 28th, 2023.
   Basis of measurement
   These condensed consolidated interim financial statements have been prepared on a historical cost basis. Financial instruments classified as financial instruments at fair value through profit or loss are stated at their fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting except for the cash flow information.

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Mirasol Resources Ltd.

Notes to the Condensed Consolidated Interim Financial Statements

For the Three Months Ended September 30, 2023

(Expressed in Canadian Funds, except where indicated)

Significant Accounting Estimates and Judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, profit and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended June 30, 2023.

Recent Accounting Pronouncements and Adoptions

Recently adopted accounting standards

Classification of liabilities as current or non-current (to IAS 1)

The IASB has published Classification of Liabilities as Current or Non-Current(Amendments to IAS 1) which clarified the guidance on whether a liability should be classified as either current or non-current.The amendments:

1. Clarify that the classification of liabilities as current or non-current should only be based on rights that are in place "at the end of the reporting period";
2. Clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and
3. Make clear that settlement includes transfers to the counterparty of cash, equity instruments, other assets or services that result in extinguishment of the liability.

This amendment was effective for annual periods beginning on or after January 1, 2023. The adoption of the amendment did not have a material impact on the Company's financial statements.

Definition of Accounting Estimates (Amendments to IAS 8)

The IASB proposed clarifying the definitions of "accounting policies" and "accounting estimates" in (Amendments to IAS 8), by making those two definitions more distinct and concise. The IASB also proposed clarifying, through additional guidance and examples, how accounting policies and accounting estimates relate to each other and how companies decide whether a change in valuation technique or a change in estimation technique is a change in an accounting estimate.

This amendment was effective for annual periods beginning on or after January 1, 2023. The adoption of the amendment did not have a material impact on the Company's financial statements.

Insurance contracts IFRS 17

IFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts.

IFRS 17 supersedes IFRS 4 and applies to annual reporting periods beginning on or after 1 January 2023. The adoption of the amendment did not have a material impact on the Company's financial statements.

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Mirasol Resources Ltd.

Notes to the Condensed Consolidated Interim Financial Statements

For the Three Months Ended September 30, 2023

(Expressed in Canadian Funds, except where indicated)

3. Cash and Cash Equivalents

Cash and cash equivalents comprise of cash and short-term redeemable Guaranteed Investment Certificates ("GIC") placed with major Canadian financial institutions. Maturity dates of these GIC's are within one year.

4. Prepaid expenses, Receivables and Advances		September 30,		June 30,
			2023		2023
	Goods and services tax receivable	$	6,695	$	6,848
	Interest receivable		69,658		18,123
	Other receivable and advances				123,970
	Prepaid expenses		141,139		54,845
		$	217,492	$	203,786

5. Marketable Securities
	Common shares:
	Balance June 30, 2022 and 2023		1,037,794
	Additions		-
	Balance September 30, 2023		1,037,794
	Fair value change:
	At June 30, 2022	$	726,456
	Additions		-
	Fair value change		(570,787)
	At June 30, 2023	$	155,669
	Additions		-
	Fair value change		(72,645)
	At September 30, 2023	$	83,024

The Company holds 1,037,794 common shares (June 30, 2023 - 10,377,943) from Silver Sands Resources Corp. ("SS") that were received as partial consideration on an option agreement. In September 2023, SS completed a consolidation of 10 old shares for one new share.

As at September 30, 2023, the market price of the shares was $0.08 per share (September 30, 2022 - $0.04). Accordingly, the Company recorded an unrealized fair value loss of $72,645 (2022 - $311,338) in the condensed consolidated interim financial statements.

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Mirasol Resources Ltd.

Notes to the Condensed Consolidated Interim Financial Statements

For the Three Months Ended September 30, 2023

(Expressed in Canadian Funds, except where indicated)

6. Right of Use of Assets and Lease Liabilities Right of Use Assets

Cost:
At June 30, 2022 and 2023	$	220,739
Additions		-
At September 30, 2023	$	220,739
Depreciation:
At June 30, 2022	$	150,545
Charge for the year		23,228
At June 30, 2023		173,773
Charge for the period		5,807
At September 30, 2023	$	179,580
Net Book Value:
At June 30, 2023	$	46,966
At September 30, 2023	$	41,159

Depreciation of right-of-use assets is calculated using the straight-line method of the remaining lease term.

7. Lease Liabilities and Lease Receivable Lease liabilities

		September 30,		June 30,
		2023		2023
Beginning balance	$	140,805	$	197,188
Lease payments made		(21,091)		(82,141)
Interest expense		5,077		25,758
	$	124,791	$	140,805
Less: current portion		(88,800)		(87,690)
Non-current portion	$	35,991	$	53,115

The following are the minimum lease payments for the remaining of the lease:

Period

In 1 year

Second year

Amount

$88,800

$51,800

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