Norsemont Mining : Financial Statements for the Year Ended 31 December 2021

NORSEMONT MINING INC.

Consolidated Financial Statements

For the years ended December 31, 2021 and 2020

(Expressed in Canadian dollars)

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of Norsemont Mining Inc.:

Opinion

We have audited the consolidated financial statements of Norsemont Mining Inc. (the "Company"), which comprise the consolidated statements of financial position as at December 31, 2021 and 2020, and the consolidated statements of comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the "financial statements").

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 to the financial statements, which describes events or conditions that indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other Information

Management is responsible for the other information. The other information comprises the information included in Management's Discussion and Analysis.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•

Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditor's report is Cherry Ho.

DALE MATHESON CARR-HILTON LABONTE LLP

CHARTERED PROFESSIONAL ACCOUNTANTS Vancouver, BC

April 20, 2022

Consolidated Statements of Financial Position

As at December 31, 2021 and 2020

(Expressed in Canadian Dollars)

Notes	December 31, 2020
$
Assets
Current assets
Cash	2,602,049	7,604,968
Amounts receivable	7	15,808	36,895
Prepaid expenses and deposits	7	38,063	137,892
Loan receivable	7	23,500	23,500
Share subscription receivable	6,15	46,100	46,455
2,725,520	7,849,710
Non-current
Term deposit	28,750	-
Property and equipment	4	88,300	2,950
Mineral properties	3	27,477,053	27,515,177
27,594,103	27,518,127
30,319,623	35,367,837
Liabilities
Current liabilities
Accounts payable and accrued liabilities	5,7	1,425,378	143,686
Amount owing on mineral properties	3,15	633,900	636,600
Lease liability	13	43,900	-
2,103,178	780,286
Non-current liabilities
Lease liability	13	49,800	-
2,152,978	780,286
Shareholders' equity
Share capital	6	44,949,764	43,433,212
Share subscription	6	22,500	-
Reserves	6	1,050,379	1,914,600
Deficit	(17,855,998)	(10,760,261)
28,166,645	34,587,551
30,319,623	35,367,837
Nature of operations and going concern	1
Subsequent events	15

December 31, 2021 $

The consolidated financial statements were approved by the Board of Directors on April 20, 2022 and were signed on its behalf by:

"Marc Levy"

Director

"Charles Ross"

Director

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

Consolidated Statements of Comprehensive Loss

For the years ended December 31, 2021 and 2020 (Expressed in Canadian Dollars)

Notes
$
Expenses
Consulting fees	974,535
Depreciation	4	739
Exploration costs	3	385,456
Investor communications	369,688	1,797,007
Marketing and promotion	-	288,414
Office, rent and administration	7	170,860	109,830
Professional fees	7	242,931	247,745
Regulatory fees	42,513	33,628
Salaries and benefits	7	430,846	189,064
Share-based payments	6,7	1,617,265	1,650,786
Transfer agent fee and communication	26,029	31,840
Travel and other expenses	10,854	14,430
Loss before other items	(9,465,987)	(5,723,474)
Accretion expense	13	(8,000)	-
Foreign exchange gain	45,689	158,238
Impairment loss	3	(38,124)	-
Interest income	2,820	2,688
Net loss for the year	(9,463,602)	(5,562,548)
Other comprehensive loss for the year
Items that may be reclassified subsequently
to net income (loss)
Foreign exchange differences on translation
of foreign operations	(113,621)	-
Net loss and comprehensive loss for the year	(9,577,223)	(5,562,548)
Loss per share
Loss per common share - basic and diluted	$(0.18)	$(0.17)
Weighted average number of shares outstanding
- basic and diluted	52,208,138	33,098,115

Year ended December 31 2021 2020 $

313,254 25,950 6,215,797

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