Murchison Minerals : Interim Financial Statements June 30, 2021

MURCHISON MINERALS LTD.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in Canadian Dollars)

(Unaudited)

NOTICE TO READER

The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of management. The unaudited condensed interim consolidated financial statements have not been reviewed by the Company's auditor.

MURCHISON MINERALS LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Expressed in Canadian Dollars) (Unaudited)

As at

					June 30,		December 31,
				2021		2020
ASSETS
Current Assets
Cash	$	1,104,003	$	2,062,411
Amounts receivable and prepaid expenses (Note 6)		179,005		90,923
Total current assets		1,283,008		2,153,334
Investment (Note 7)		3,919		3,402
Property and equipment (Note 8)		103,825		71,580
Total assets	$	1,390,752	$	2,228,316
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities	$	315,723	$	100,439
Loan payable (Note 14)		8,717		-
Flow-through share premium liability		10,848		130,459
Total current liabilities		335,288		230,898
Loan payable (Note 14)		34,869		-
Total liabilities		370,157		230,898
EQUITY
Share capital (Note 10)		32,949,283		32,305,495
Reserves (Notes 11 and 12)		1,176,305		1,019,705
Deficit		(33,104,993)		(31,327,782)
Total equity		1,020,595		1,997,418
Total equity and liabilities	$	1,390,752	$	2,228,316
Nature and Continuance of Operations (Note 1)
Commitments and Contingencies (Note 14)
Approved on Behalf of the Board:
	"signed"	"signed"
	Jean-Charles Potvin		Denis Arsenault
	Director	Director

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

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MURCHISON MINERALS LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(Expressed in Canadian Dollars)
(Unaudited)
	Three Months Ended		Six Months Ended
		June 30		June 30
	2021	2020		2021		2020
EXPENSES
Exploration expenses (Note 9)	422,150	(6,592)	$	1,576,058	$	1,271,254
Professional fees	13,053	9,213		21,272		26,329
Management fees and salaries (Note 13)	56,919	43,876		147,700		118,988
Office and general	10,566	14,135		24,796		31,753
Regulatory and transfer agent	702	6,604		13,428		9,178
Investor relations	40,325	21,695		74,704		71,067
Share-based payments (Notes 12 and 13)	37,897	-		42,243		-
Loss before the under noted	581,612	88,931		1,900,201		1,528,569
Interest income	(1,226)	(103)		(2,862)		(2,621)
Flow-through shares premium	(70,173)	-		(119,611)		(330,349)
Unrealized gain on marketable securities (Note 7)	(862)	(2,110)		(517)		(1,464)
Loss for the period	509,351	86,718	$	1,777,211	$	1,194,135
Loss per share - basic and diluted	0.00	0.00	$	0.02	$	0.02
Weighted average number of common shares
outstanding - basic and diluted	101,936,177	64,839,155		105,400,265		64,763,802

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

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MURCHISON MINERALS LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EQUITY

(Expressed in Canadian Dollars) (Unaudited)

					Reserves
			Equity settled
				share-based
		Share			payments		Warrants
		Capital			reserve		reserve		Deficit		Total
Balance, December 31, 2019	$	29,934,685	$	532,660	$	212,475	$	(29,434,152)	$	1,245,668
Net loss for the period		-			-		-		(1,194,135)		(1,194,135)
Issuance of common shares		170,007			-		-		-		170,007
Balance, June 30, 2020	$	30,104,692	$	532,660	$	212,475	$	(30,628,287)	$	221,540
Balance, December 31, 2020	$	32,305,495	$	833,830	$	185,875	$	(31,327,782)	$	1,997,418
Net loss for the period		-			-		-		(1,777,211)		(1,777,211)
Issuance of common shares (net of issue costs)		643,788			-		-		-		643,788
Issuance of stock options / share-based compensation		-			42,243		-		-		42,243
Issuance of warrants		-			-		114,357		-		114,357
Balance, June 30, 2021	$	32,949,283	$	876,073	$	300,232	$	(33,104,993)	$	1,020,595

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

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MURCHISON MINERALS LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in Canadian Dollars)
(Unaudited)
	Three Months Ended		Six Months Ended
	June 30				June 30
	2021	2020		2021		2020
CASH (USED IN) PROVIDED BY:
OPERATING ACTIVITIES
Loss for the period	(509,351)	(86,718)	$	(1,777,211)	$	(1,194,135)
Share-based payments	37,897	-		42,243		-
Flow-through shares premium	(70,173)	-		(119,611)		(330,349)
Unrealized loss on marketable securities	(862)	(2,110)		(517)		(1,464)
Amortization	5,269	4,113		9,382		7,937
Net change in non-cash working capital items:	(537,220)	(84,715)		(1,845,714)		(1,518,011)
Amounts receivable and prepaid expenses	224,898	74,034		(88,082)		(58,342)
Accounts payable and accrued liabilities	138,062	(131,699)		215,284		123,211
Net cash flows used by operating activities	(174,260)	(142,380)		(1,718,512)		(1,453,142)
INVESTING ACTIVITIES
Acquisition of property and equipment	(41,627)	-		(41,627)		(76,687)
Net cash flows used by investing activities	(41,627)	-		(41,627)		(76,687)
FINANCING ACTIVITIES
Issuance of common shares	-	182,857		800,000		182,857
Issue costs	-	(12,850)		(41,855)		(12,850)
Loan payable	43,586	-		43,586		-
Issuance of promissory note	-	-		-		200,000
Net cash flows provided by financing activities	43,586	170,007		801,731		370,007
NET CHANGE IN CASH	(172,301)	27,627		(958,408)		(1,159,822)
CASH, BEGINNING OF THE PERIOD	1,276,304	246,898		2,062,411		1,434,347
CASH, END OF THE PERIOD	1,104,003	274,525	$	1,104,003	$	274,525

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

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