Radio Fuels Energy : Interim Financial Report

RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Financial Statements

For the three and six months ended May 31, 2022 and 2021

(in Canadian dollars, unless otherwise stated)

(unaudited)

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 interim financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by management and approved by the Audit Committee and Board of Directors of the Company. The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Statements of Financial Position (unaudited)

(in Canadian dollars)

					May 31,		November 30,
					2022		2021
	Assets
	Current assets
	Cash and cash equivalents	$	3,922,594	$	175,363
	Marketable securities (Note 5)		18,293,587		549,416
	Other receivables (Note 6)		17,264		35,436
	Prepaid expenses		155,921		333,151
	Restricted cash (Note 9)		-		25,482,792
					22,389,366		26,576,158
	Exploration and evaluation assets (Note 7)		20,435,404		-
	Total assets			$	42,824,770	$	26,576,158
	Liabilities
	Current liabilities
	Trade payables and accrued liabilities (Note 8)	$	89,632	$	504,984
	Subscription receipts (Note 9)		-		25,462,307
	Total liabilities		89,632		25,967,291
	Equity
	Share capital (Note 9)		46,110,625		10,627,319
	Contributed surplus (Note 10)		12,958,173		-
	Deficit				(16,333,660)		(10,018,452)
	Total equity				42,735,138		608,867
	Total liabilities and equity	$	42,824,770	$	26,576,158
Nature of operations (Note 1)
Approved on behalf of the board:
	Director	"Denis Laviolette" (signed)
	Director	"Jack Campbell" (signed)

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

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RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (unaudited)

(in Canadian dollars)

	Three months ended May 31,	Six months ended May 31
		2022		2021		2022		2021
Expenses:
Consulting fees (Note 11)	$	120,500	$	30,000	$	799,197	$	60,000
Professional fees		27,908		34,638		67,928		53,972
Investor relations, regulatory and filing fees		152,159		1,018		314,225		5,914
Office and general		4,504		312		7,325		370
Stock-based compensation		3,147,970		-		3,147,970		-
Exploration and evaluation expenditures		-		-		4,105		-
	(3,453,041)		(65,968)	(4,340,750)		(120,256)
Unrealized loss on marketable securities	(1,650,830)		(358,797)		(880,177)		(991,974)
Realized loss on disposition of marketable securities	(1,193,944)		-	(1,193,944)		-
Foreign exchange gain		12,998		-		12,998		-
Other income		67,338		-		86,665		-
Net loss and comprehensive loss for the period	$(6,217,479)	$	(424,765)	$(6,315,208)	$(1,112,230)
Basic and diluted loss per share (Note 9 (c))	$	(0.04)	$	(0.02)	$	(0.05)	$	(0.08)

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

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(in Canadian dollars)

RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Statements of Changes in Equity (unaudited)

For the six months ended May 31, 2022 and 2021

	Number of common				Contributed
	shares		Share capital		Surplus	Accumulated Deficit		Total
Balance at December 1, 2021	17,319,233	$	10,627,319	$	-	$	(10,018,452)	$	608,867
Shares issued on private placements (Note 9(b))	63,707,024		25,482,810		-		-		25,482,810
Shares issued on acquisiotn opf Radio Fuels Resources Corp. (Note 9(b))	58,823,529		20,000,000		-		-		20,000,000
Shaers issued on acquisition of exploration and evaluation asset (Note 9(b))	2,000,000		680,000		-		-		680,000
Cost of issuance - cash	-		(909,301)		-		-		(909,301)
Cost of issuance - units	100,000		24,861		15,139				40,000
Cost of issuance - broker warrants	-		(150,642)		150,642		-		-
FMV of warrants issued	-		(9,644,422)		9,644,422		-		-
FMV of stock options granted	-		-		3,147,970		-		3,147,970
Comprehensive loss for the period	-		-		-		(6,315,208)		(6,315,208)
Balance at May 31, 2022	141,949,786	$	46,110,625	$	12,958,173	$	(16,333,660)	$	42,735,138
	Number of common				Contributed
	shares		Share capital		Surplus	Accumulated Deficit		Total
Balance at December 1, 2020	10,342,042	$	8,255,074	$	-	$	(8,505,663)	$	(250,589)
Shares issued on private placement (Note 9(b))	1,764,773		600,023		-		-		600,023
Shares issued pursuant to Share Exchange Agreements (Note 9(b))	5,212,418		1,772,222		-		-		1,772,222
Comprehensive loss for the period	-		-		-		(1,112,230)		(1,112,230)
Balance at May 31, 2021	17,319,233	$	10,627,319	$	-	$	(9,617,893)	$	1,009,426

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

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(in Canadian dollars)

RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Statements of Cash Flows (unaudited)

For the six months ended May 31, 2022 and 2021

		2022		2021
Operating activities
Comprehensive loss for the period	$	(6,315,208)	$	(1,112,230)
Adjustment for:
Unrealized loss on marketable securities		880,177		991,974
Realized loss on sale of marketable securities		1,193,944		-
Stock-based compensation		3,147,970		-
Change in non-cash operating working capital
Other receivables		18,172		1,426
Prepaid expenses		177,230		683
Trade payables and accrued liabilities		(395,084)		122,946
		(1,292,799)		4,799
Investing activities
Cash acquired from Radio Fuels Resources Corp.		284,812		-
Purchase of marketable securities		(20,494,924)		-
Proceeds from disposition of marketable securities		676,633		-
		(19,533,479)		-
Financing activities
Proceeds from share issuance, net of issuance costs		24,573,509		600,023
		24,573,509		600,023
Increase in cash and cash equivalents		3,747,231		604,822
Cash and cash equivalents, beginning of period		175,363		841
Cash and cash equivalents, end of period	$	3,922,594	$	605,663

Supplementary information:

The Company did not pay any income taxes during the above reporting periods.

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

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