Wolf Acquisition : Interim Financial Statements for the months ended June 30, 2022 and 2021

Hercules Silver Corp. (formerly, Bald Eagle Gold Corp.)

Unaudited Interim Condensed Consolidated Financial Statements

For the period ended June 30, 2022, and 2021

Notice of No Auditor Review of Interim 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 interim condensed consolidated financial statements of the Company have been prepared by and are the responsibility of the company's management. The Company's independent auditor has not performed an audit or review of these interim condensed consolidated financial statements in accordance with standards established by the Canadian Institute of Chartered Professional Accountants.

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Hercules Silver Corp. (formerly, Bald Eagle Gold Corp.)

Unaudited Interim Condensed Consolidated Statements of Financial Position (Canadian dollars except share amounts or stated otherwise)

	Note		June 30, 2022		December 31, 2021
ASSETS		$	2,959,597	$
Cash		1,835,699
Sales tax recoverable		-	73,434		25,101
Prepaid expenses				22,917
		$	3,033,031	$	1,883,717
LIABILITIES		$	24,085	$
Accounts payable and accrued liabilities		133,810
		$	24,085	$	133,810
SHAREHOLDERS' EQUITY		$	13,211,273	$
Share capital	3	10,913,815
Warrant Reserve	4		278,832		278,832
Options Reserve	5		256,647		256,647
RSU Reserve	6		44,294		80,022
Deficit			(10,782,100)		(9,779,409)
		$	3,008,946	$	1,749,907
		$	3,033,031	$	1,883,717

Note 1: Description of business and going concern

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

Approved on behalf of the Board of Directors:

/s/ Christopher Paul

Signed: Director

/s/ Darren Collins

Signed: Director

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Hercules Silver Corp. (formerly, Bald Eagle Gold Corp.)

Unaudited Interim Condensed Consolidated Statements of Loss and Comprehensive Loss (Canadian dollars except share amounts or stated otherwise)

Six months ended	Note	June 30, 2022	June 30, 2021
Acquisition of exploration properties		-	4,703,690
Exploration and evaluation		159,904
expenditures		303,250
General and administrative	10	517,121	821,193
Professional fees		132,765	316,335
Stock based compensation		217,600	-
Listing expense		208,271	958,959
Foreign exchange		23,104	-
Interest income		(205)	(331)
Loss and comprehensive loss		1,258,659	7,103,096
Basic and diluted loss per share		(0.03)	(0.09)
Weighted avg. shares		126,448,949	75,649,502

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

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Hercules Silver Corp. (formerly, Bald Eagle Gold Corp.)

Unaudited Interim Condensed Consolidated Statement of Changes Shareholders' Equity (Canadian dollars except share amounts or stated otherwise)

	Number of
	Common			Share			Warrants		Options		RSU
	Shares			Capital			Reserve		Reserve		Reserve		Deficit		Total
Balance, January 01, 2021	34,770,001	$		3,352,898		$	-	210,728	$	-	$	(2,698,460)	$	865,166
Subscription receipts (note 3)	20,991,058			2,246,043			272,884	-		-		-		2,518,927
Share issuance costs (note 3)	-		(147,651)			5,948	-		-		-		(141,703)
Wolf acquisition	11,736,001		1,255,752			-	27,479		-		-		1,283,231
Frontera acquisition	34,650,003		3,707,550			-	-		-		-		3,707,550
Hercules acquisition	1,540,000		77,000			-	-		-		-		77,000
Leviathan acquisition	10,000,000		400,000			-	-		-		-		400,000
Options exercised (note 5)	180,000		22,223			-	(7,223)		-		-		15,000
Share-based payments (notes 5 and 6)	-		-			-	25,663		80,022		-		105,685
Comprehensive loss	-		-			-	-		-		(7,080,949)		(7,080,949)
Balance, December 31, 2021	113,867,063	$	10,913,815	$	278,832	256,647	$	80,022	$	(9,779,409)	$	1,749,907
	Number of
	Common			Share			Warrants		Options		RSU
	Shares			Capital			Reserve		Reserve		Reserve		Deficit		Total
Balance, January 1, 2022	113,867,063	$		10,913,815		$	278,832	256,647	$	80,022	$	(9,779,409)	$	1,749,907
Share-based payments (notes 5 and 6)	32,841,666			2,553,426			-	-		(35,728)		-		2,517,698
Comprehensive loss	-		-			-	-		-		(1,258,659)		(1,258,659)
Balance, June 30, 2022	146,708,729	$	13,467,241	$	278,832	256,647	$	44,294	$	(11,038,038)	$	3,008,946

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

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Hercules Silver Corp. (formerly, Bald Eagle Gold Corp.)

Unaudited Interim Condensed Consolidated Statements of Cash Flow (Canadian dollars except share amounts or stated otherwise)

For the six months ended, June 30			2022		2021
Operating activities	Note
Net loss for the period		$	(1,258,659)	$	(7,103,096)
Items not affecting cash
Share-based compensation	5,6		217,600		25,663
Listing expense			-		954,319
Property acquisition expense			-		4,677,614
Change in working capital items
Sales tax recoverable			(48,335)		(37,862)
Prepaid expenses			22,917		(205,417)
Accounts payable and accrued liabilities			(109,725)		156,721
Due to related parties			-		(25,250)
Cash used in operating activities		$	(1,176,202)	$	(1,557,308)
Financing activities
Option exercise	3,5	$	-	$	15,000
Share issuance	3		2,300,000		2,518,927
Share issuance costs	3		-		(33,227)
Cash from financing activities		$	2,300,000	$	2,500,700
Investing activities
Net cash acquired from Wolf			-		318,912
Loan to Frontera			-		(442,192)
Cash used in investing activities		$	-	$	(113,280)
Change in cash		$	1,123,898	$	830,112
Cash, opening balance			1,835,699		691,421
Cash, closing balance		$	2,959,597	$	1,521,533

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

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