Bond Resources Inc. — Interim / Quarterly Report 2023

May 25, 2023

BOND RESOURCES INC.

Condensed Interim Consolidated Financial Statements For the period ended March 31, 2023 and 2022 (in United States dollars)

BOND RESOURCES INC. Condensed Interim Consolidated Statements of Financial Position

As at March 31, 2023 and 2022 (in United States Dollars) (Unaudited)

Assets March 31, 2023 June 30, 2022 Current assets: Cash $ 1,580 $ 9,765 GST receivable 46,390 44,799 Prepaid expenses - 4,608	Assets March 31, 2023 June 30, 2022 Current assets: Cash $ 1,580 $ 9,765 GST receivable 46,390 44,799 Prepaid expenses - 4,608
Total current assets Non-current assets: Property and equipment_(Note 4) Exploration and evaluation assets(Note 5)_	47,970 59,172 96,105 334,592 - 1,420,788
Total non-current assets	96,105 1,755,380
Total assets $	144,075 $ 1,814,552
Liabilities Current liabilities: Accounts payable and accrued liabilities_(Note 3) $ Due to related party(Note 3)_	901,101 $ 200,236 934,420 746,150
Total current liabilities	1,835,521 946,386
Shareholders’ equity (deficiency) Share capital (Note 6) 8,796,384 8,796,384 Share-based payments reserve (Note 6) 720,368 720,368 Foreign currency translation reserve (58,023) (62,540) Deficit (11,150,175) (8,586,046)
Total shareholders’ equity (deficiency) (1,691,446) 868,166
Total liabilities and shareholders’ equity (deficiency) $ 144,075 $ 1,814,552

Nature of Operations and Going Concern (Note 1) Subsequent Events (Notes 1 and 5)

Approved on behalf of the Board of Directors:

signed “Joseph Carrabba” signed “Robert Eadie” Director Director

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

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BOND RESOURCES INC.

Condensed Interim Consolidated Statements of Net Loss and Comprehensive Loss

For the periods ended March 31, 2023 and 2022 (in United States Dollars) (Unaudited)

Three months ending Nine months ending Exploration costs March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 Amortization (Note 4) $ 2,156 $ 19,495 34,916 $ 57,981 Assays - - 772 1,910 Drilling and supplies 2,552 40,820 3,912 298,046 Equipment rental 69,804 156,980 240,840 519,697 Insurance 16,524 39,634 57,742 92,883 Office and miscellaneous 4,065 29,456 21,800 110,036 Permitting - 80 - 80 Salaries, wages and benefits 51,008 308,280 223,917 857,631 Travel and auto 6,612 15,241 19,395 34,269	Three months ending Nine months ending Exploration costs March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 Amortization (Note 4) $ 2,156 $ 19,495 34,916 $ 57,981 Assays - - 772 1,910 Drilling and supplies 2,552 40,820 3,912 298,046 Equipment rental 69,804 156,980 240,840 519,697 Insurance 16,524 39,634 57,742 92,883 Office and miscellaneous 4,065 29,456 21,800 110,036 Permitting - 80 - 80 Salaries, wages and benefits 51,008 308,280 223,917 857,631 Travel and auto 6,612 15,241 19,395 34,269	Three months ending Nine months ending Exploration costs March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 Amortization (Note 4) $ 2,156 $ 19,495 34,916 $ 57,981 Assays - - 772 1,910 Drilling and supplies 2,552 40,820 3,912 298,046 Equipment rental 69,804 156,980 240,840 519,697 Insurance 16,524 39,634 57,742 92,883 Office and miscellaneous 4,065 29,456 21,800 110,036 Permitting - 80 - 80 Salaries, wages and benefits 51,008 308,280 223,917 857,631 Travel and auto 6,612 15,241 19,395 34,269
Total exploration costs	152,721	609,986 603,294 1,972,533
Expenses Accounting and audit fees_(Note 3) Finance costs Foreign exchange loss (gain) Legal, consulting and corporate services(Note 3) Management activities(Note 3) Office, occupancy and administration(Note 3) Shareholder communications(Note 3)_ Transfer agent and filing fees	1,409 90 226 2,408 20,545 5,298 9,215 1,710	5,860 30,651 46,588 30 90 165 (865) 168 (4,899) 14 14,600 20,819 46,009 71,491 151,473 4,931 16,345 21,848 21,048 16,718 57,829 8,367 8,413 10,467
Total expenses Other items Impairment of exploration and evaluation assets (Note 5) Loss on sale of mining equipment	40,901 26,000 -	85,394 158,476 304,290 - 1,698,788 - - 103,571 -
Net loss	(219,622)	(695,380) (2,564,129) (2,276,823)
Other comprehensive income: Items that will be reclassified subsequently to profit or loss Foreign currency translation of foreign operations	(252)	3,278 4,517 (14,707)
Comprehensive loss $	(219,874) $	(692,102) $ (2,559,612) $ (2,291,530)
Net loss per shareBasic and diluted $ (0.00) $ (0.01) $ (0.02) $ (0.02) Weighted average number of shares outstanding -Basic and diluted 127,700,276 127,700,276 127,700,276 121,893,938

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

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BOND RESOURCES INC.

Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity (Deficiency) For the period from July 1, 2021 to March 31, 2023 (in United States Dollars) (Unaudited)

	Share Capital Number Amount	Share Capital Number Amount	Share Capital Number Amount	Share-Based Payments Reserve	Share-Based Payments Reserve	Foreign Currency Translation Reserve	Foreign Currency Translation Reserve		Deficit		Total
Balance, June 30, 2021	115,009,776	$	8,234,448	$	718,557	$	(40,843)	$	(5,833,682)	$	3,078,480
Net and comprehensive loss	-		-		-		(27,288)		(751,848)		(779,136)
Balance, September 30, 2021	115,009,776	$	8,234,448	$	718,557	$	(68,131)	$	(6,585,530)	$	2,299,344
Issuance of common shares	12,160,000		569,555		-		-		-		569,555
Share issue costs	530,500		(7,619)		1,811		-		-		(5,808)
Net and comprehensive loss	-		-		-		5,591		(2,000,516)		(1,994,925)
Balance, June 30, 2022	127,700,276	$	8,796,384	$	720,368	$	(62,540)	$	(8,586,046)	$	868,166
Net and comprehensive loss	-		-		-		4,517		(2,564,129)		(2,559,612)
Balance, March 31, 2023	127,700,276	$	8,796,384	$	720,368	$	(58,023)	**$ **	(11,150,175)	$	(1,691,446)

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

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BOND RESOURCES INC. Condensed Interim Consolidated Statements of Cash Flows

For the periods ended March 31, 2023 and 2022 (in United States Dollars) (Unaudited)

(in United States Dollars) (Unaudited)
Operating Activities Net loss $ Non cash item: Amortization Loss from the sale of mining equipment Impairment of exploration and evaluation assets (Note 5) Changes in non-cash working capital: GST receivable Prepaid expenses Accounts payable and accrued liabilities	Period ending March 31, 2023 Period ending March 31, 2022 (2,564,129) $ (2,276,823) 34,916 57,983 103,571 - 1,698,788 - (1,591) (10,971) 4,608 (1,615) 448,865 7,003
Net cash used in operating activities	(274,972) (2,224,423)
Investing Activities Property and equipment (Note 4) Proceeds from the sale of mining equipment Explorationand evaluationassets (Note 5)	- (14,150) 100,000 - (26,000) (328,908)
Net cash used in investing activities	74,000 (343,058)
Financing Activities Due to related party (Note 3) Issuance ofsharesforcash(Note 6)	188,270 436,150 - 563,747
Net cash provided by financing activities	188,270 999,897
Decrease in cash Effect of foreign exchange on cash Cash, beginning of theyear	(12,702) (1,567,584) 4,517 (14,706) 9,765 1,621,563
Cash, end of theyear $	1,580 $39,273

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

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BOND RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements

March 31, 2023 (all amounts are expressed in United States dollars) (Unaudited)

1. Nature of Operations and Going Concern

Bond Resources Inc. (“Bond” or the “Company”) was incorporated on January 22, 2007 under the Business Corporations Act of British Columbia as J. Bond Capital Corporation. It did not commence operations until August 15, 2017. Bond changed its legal name to Bond Resources Inc. on November 16, 2018 and commenced trading on the Canadian Securities Exchange (the “CSE”) on May 2, 2019 under the trading symbol “BJB”.

On May 15, 2020, Bond acquired MJ Mining Inc. (“MJ Mining”). MJ Mining was incorporated on January 15, 2020 under the laws of British Columbia, Canada. MJ Mining’s 100% owned subsidiary, MJ Mining Corp., was formed on October 25, 2019 (originally under the name of MJ Mining LLC) under the laws of the State of Delaware, United States of America. The Company's principal business activity is the exploration of mineral properties in the United States. The address of the Company’s corporate office is 750– 580 Hornby Street, Vancouver, British Columbia, Canada.

Acquisition by Bond Resources Inc. – Reverse Merger

On May 15, 2020, MJ Mining completed a share exchange agreement (“Agreement”) with Bond whereby Bond issued 62.2 million common shares to the shareholders of MJ Mining, for 100% of the issued and outstanding shares of MJ Mining. As a result, the acquisition of Bond resulted in a change of control, which transaction amounts to a reverse merger transaction (“Reverse Merger”). As a Reverse Merger, Bond is the legal parent, however, the accounting parent going forward is MJ Mining with the acquisition value being the net assets of Bond.

Going concern

The condensed interim consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the payment of liabilities in the ordinary course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and meet its liabilities as they become due. For the period ended March 31, 2023, the Company incurred a loss of $2,564,129 and had negative cash flows from operations of $274,972. These condensed interim consolidated financial statements do not reflect the adjustments or reclassification of assets and liabilities which would be necessary if the Company were unable to continue as a going concern and therefore be required to realize its assets and liabilities in other than the normal course of business and potentially at amounts materially different from those recorded in these condensed interim consolidated financial statements.

The Company is in the process of exploring its mineral property interests on the Mary K property in Idaho, USA. As of the date of these condensed interim consolidated financial statements, however, the Landowners have given notice of default on the Mary K property pursuant to the requirements of the property agreements and, if terminated, the Company will have no properties under exploration (please see Note 5 for status of properties and impairment of the Company’s Mary K property). The Company's continuing operations and the underlying value and recoverability of the amounts shown for assets is entirely dependent upon the ability of the Company to obtain the necessary financing to continue operations. Currently, there are no financing arrangements in place.

These events and conditions create a material uncertainty that may cast significant doubt about the Company’s ability to continue as a going concern and therefore may be unable to realize its assets and discharge its liabilities in the normal course of business.

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BOND RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements March 31, 2023 (all amounts are expressed in United States dollars) (Unaudited)

2. Basis of Presentation

• (a) Statement of Compliance

These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). For the nine months ending March 31, 2023, these statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting, and do not include all the information required for full annual financial statement. These condensed interim consolidated financial statements were approved and authorized for issuance on May 18, 2023 by the Board of Directors.

(b) Basis of Presentation and Measurement

These condensed interim consolidated financial statements have been prepared using the historical cost convention, except for certain financial instruments measured at fair value. These consolidated financial statements are prepared using the accrual method of accounting, except for cash flow information.

The consolidated financial statements are presented in United States dollars (“USD”), which is the functional currency of MJ Mining and MJ Mining Corp. The functional currency of Bond is the Canadian dollar (“CAD”).

The preparation of financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment of complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3 of the Company’s June 30, 2022 audited annual financial statements.

3. Related Party Transactions

The following is a summary of charges incurred by the Company with key management personnel, consisting of the chief executive officer and president, chief financial officer, and directors:

Nine Month Period ended March 31,		2023		2022
Management fees		71,491		109,460
Total	$	71,491	$	109,460

The following is a summary of charges incurred by the Company with related parties, other than key management personnel:

Nine Month Period ended March 31,		2023		2022
Legal and corporate services	$	-	$	10,465
Office, occupancy and administration		18,498		22,007
Shareholder communications		-		36,012
Total	$	18,498	$	68,484

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BOND RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements March 31, 2023 (all amounts are expressed in United States dollars) (Unaudited)

3. Related Party Transactions (continued)

During the period ended March 31, 2023, Bond incurred operational expenses for accounting, office and legal and corporate services of $18,498 (March 31, 2022 - $32,472) from companies controlled by an officer and the secretary of the Company. Shareholder communication expenses of $nil (March 31, 2022 - $36,012) were charged to the Company by a person related to a director for services rendered.

Included in Bond’s accounts payable and accrued liabilities at March 31, 2023 is $152,441 (June 30, 2022 - $57,963) owed to officers for management fees, accounting, office and legal and corporate services. Transactions with related parties are non-interest bearing and have no repayment terms.

During the period ending March 31, 2023, the CEO advanced an additional $188,270 to the Company (June 30, 2022 - $746,150) as an unsecured, non-interest bearing loan with no repayment terms for a total loan outstanding of $934,420.

4. Property and Equipment

4. Property and Equipment
		Mining
		equipment	Vehicles			Total
Cost
Balance June 30, 2021	$	497,208	**$ **	24,769	$	521,977
Additions		14,150		-		14,150
Balance June 30, 2022	$	511,358	**$ **	24,769	$	536,127
Disposals		(360,000)		-		(360,000)
Balance March 31, 2023	$	151,358	**$ **	24,769	$	176,127
Accumulated Amortization, June 30, 2021	**$ **	(115,319)	**$ **	(8,738)	$	(124,057)
Amortization		(72,546)		(4,932)		(77,478)
Accumulated Amortization, June 30, 2022		(187,865)	(13,670)			(201,535)
Disposals		156,429		-		156,429
Amortization		(31,217)		(3,699)		(34,916)
Accumulated Amortization, March 31, 2023		(62,653)	(17,369)			(80,022)
Net Carrying Amount, June 30, 2022	$	323,493	$	11,099	$	334,592
Net Carrying Amount, March 31, 2023	$	88,705	$	7,400	$	96,105

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BOND RESOURCES INC.

Notes to the Condensed Interim Consolidated Financial Statements

March 31, 2023 (all amounts are expressed in United States dollars) (Unaudited)

5. Exploration and Evaluation Assets

	Mary K	Hard Cash	Hard Cash	Total
Acquisition Costs:	Property		Property
Balance, June 30, 2021	$ 1,116,788	$	2,000	$ 1,118,788
Ground lease rent	104,000		-	104,000
Net profits royalty advance	200,000		-	200,000
Write-off	-		(2,000)	(2,000)
Balance, June 30, 2022	$ 1,420,788	$	-	$ 1,420,788
Ground lease rent	78,000		-	78,000
Net profits royalty advance	200,000		-	200,000
Impairment	(1,698,788)		-	(1,698,788)
Balance, March 31, 2023	$-	$	-	$-
Total Exploration and evaluation assets,June 30,2022	$1,420,788	$	-	$1,420,788
Total Exploration and evaluation assets, March 31, 2023	$ -	$	-	$ -

Mary K Property

MJ Mining, through its US subsidiary MJ Mining Corp. and in exchange for MJ Mining’s payment of non-refundable fees of $350,000, was granted the exclusive option by the Landowners (“Landowners”) to acquire, over a period of ten years, the right, title and interest in and to the Mary K Property (the “Agreement”). This right was free and clear of all charges, encumbrances, claims, royalties, or other interests, except for a 5% State Royalty, for a total purchase price of $8,650,000 (the “Purchase Price”) as follows:

• a) $500,000 payable based upon the “Initial Closing”(paid).

• b) The balance of the Purchase Price, $8,150,000 to be paid as a Net Profit Royalty (“NPR”), paid on a quarterly basis and will vary depending on the grade of gold realized from operations.

The NPR is also subject to certain minimum annual payments of:

• at least $200,000 per year commencing in 2020 (paid for 2020 and 2021);

• at least $4,075,000 must be paid, in aggregate, after five years; and

• at least $8,150,000 must be paid, in aggregate, after 10 years.

In addition, in March 2020, MJ Mining entered into a ground lease (“Ground Lease”) with certain arm’s length parties for a mineral lease in the State of Idaho for the Mary K property. The Ground Lease commenced on April 1, 2020 and was to expire at the end of the tenth full lease year. MJ Mining has paid fixed rent in advance on the first day of each calendar quarter of $26,000 ($104,000 annually) up to the September 30, 2022 quarter end.

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BOND RESOURCES INC.

Notes to the Condensed Interim Consolidated Financial Statements

March 31, 2023 (all amounts are expressed in United States dollars) (Unaudited)

5. Exploration and Evaluation Assets (continued)

Mary K Property – (continued)

As at March 31, 2023, the Company was in arrears of the $200,000 minimum annual payment (in lieu of the NPR) and $52,000 in respect of the Ground Lease commitment. Under the terms of the Agreement, the Company has 30 days after the receipt of notice of default from the Landowners to rectify the default. The Company received a notice of default of the Agreement from the Landowners in January, 2023 and had until March 3[rd] to accept the terms of the notice to remedy the default or accept that the Agreement has been terminated. In March, 2023, the Landowners granted the Company an extension until May 3[rd] , and in May, 2023, granted a further extension until June 4, 2023 to remedy the default or accept that the Agreement has been terminated.

Management has decided to record an impairment of the full amount Mary K asset of $1,698,788 at this time as there is no certainty that the Company will be successful in completing a financing and avoiding a default of the Agreement. This amount includes all minimum annual payments and property costs paid and owing to March 31, 2023.

Should the Company default on the agreement, it will no longer own any mining properties.

Hard Cash Property

In February, 2021, the Company and Winston Gold Corp. (“Winston”) (CSE: WGC) jointly entered into a Lease Agreement, with an option to purchase, (“the Agreement”) with Montana Reclaim LLC over nine mining claims covering approximately 166 acres in Montana, USA, more commonly known as the Hard Cash property (the “Property”). Bond and Winston were equal partners in the project, with Winston as the operator. The Company’s CEO is also a director of Winston. During the year ended June 30, 2022, management withdrew from the Agreement with Winston and, consequently, wrote off $2,000 in costs associated with this Property.

Aspen Property

Pursuant to the reverse merger, the Company held a 100% interest in the Aspen property claim block located on the Nechako Plateau in British Columbia, Canada. During the year ending June 30, 2022, the Aspen property was sold for $15,522 (CAD$20,000) to a Company controlled by a Director and a gain on sale of exploration and evaluation assets of $15,522 was recognized.

6. Share Capital

(a) Authorized

Unlimited number of common shares without nominal or par value. Unlimited number of preferred shares, issuable in series.

(b) Issuances

On December 14, 2021, Bond completed Tranche 1 of its non-brokered private placement, raising $569,555 (CAD$729,600) in gross proceeds through the issuance of 12,160,000 units at a price of CAD$0.06 per Unit. Each Unit is comprised of one common share and one-half common share purchase warrant, with each whole Warrant entitling the holder to purchase one common share of Bond at a price of CAD$0.12 per share for a period of 2 years, provided that, if after the expiry of all resale restrictions, the closing price of the Company’s Shares is equal to or greater than $0.25 per share for 20 consecutive trading days, the Company may, by notice to the Warrant holders, reduce the remaining exercise period of the Warrants to not less than

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BOND RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements

March 31, 2023 (all amounts are expressed in United States dollars) (Unaudited)

6. Share Capital (continued)

b) Issuances - (continued)

30 days following the date of such notice. These warrants included in the unit offering were valued at $nil under the residual value method. Aggregate compensation of $5,808 (CAD$7,440) in cash, 116,000 finders’ warrants, valued at $1,811 (CAD$2,320) using the BlackScholes option pricing model, (having the same general terms as the warrants forming part of the Units) and 530,500 common shares was issued by the Company as finders’ fees, valued at $12,424 (CAD$15,915).

(c) Warrants

A summary of the Company’s outstanding share purchase warrants is presented below:

Number of	Exercise
Warrants	Price	Expiry Date
	CAD
18,336,829	$0.16	March 30, 2026
2,300,600	$0.16	May 7, 2026
6,196,000	$0.12	December 14, 2023
26,833,429	$0.15

A summary of the Company’s outstanding share purchase warrants is presented below:

		Number of Warrants	Weighted Average Exercise Price CAD
	Outstanding at June 30, 2021 Warrants Issued Warrants Expired	40,996,521 6,196,000 (4,578,345) 42,614,176	0.28 0.12 0.40 $ 0.24
	Outstanding at June 30, 2022
	Warrants Expired	(15,780,747)	0.40
	Outstanding at March 31, 2023	26,833,429	$ 0.15

During the period ended March 31, 2023, 15,780,747 warrants exercisable at $0.40 per share expired unexercised.

(d) Share-based payments

The Company, in accordance with the policies of the Exchange, is authorized to grant share purchase options to directors, officers, employees and service providers to acquire up to 10% of common shares then outstanding (the “Plan”). Under the Plan, options may be granted at no less than the closing market price of the Company’s shares on the day preceding the grant for a maximum term of 10 years. No amounts are paid or payable by the recipient on receipt and

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BOND RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements

March 31, 2023 (all amounts are expressed in United States dollars) (Unaudited)

6. Share Capital (continued)

• (d) Share-based payments - (continued)

the options are not dependent on any performance-based criteria. Share purchase options will vest when granted except where granted for investor relations activities which vest and may be exercised in accordance with the vesting provisions as to ¼ of the options each 3 months. A summary of the Company’s outstanding stock options is presented below:

Number of	Exercise		Weighted Average
Options	Price CAD	Expiry Date	Life Remaining
			(years)
415,000	$0.20	June 24, 2024	1.23
3,530,000	$0.30	May 25, 2025	2.15
3,945,000	$0.29		2.05

A summary of the Company’s outstanding stock options is presented below:

	Number of	Weighted Average
	Options	Exercise Price CAD
Outstanding and exercisable at June
30, 2022 and March 31, 2023	3,945,000	$ 0.29

7. Financial Instruments and Risk Management

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. There were no changes to the Company’s risk exposure during the period ended March 31, 2023.

(a) Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company's credit risk is primarily attributable to its liquid financial assets, including cash. The Company limits its exposure to credit risk by dealing with well rated entities. Management believes credit risk to be low as its cash is held in a major financial institution in Canada and the United States.

(b) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. When necessary, the Company obtains financing from various investors to ensure all future obligations are fulfilled. The Company does not have any contractual obligations other than property payments (note 5), accounts payable and accrued liabilities which are due within the next 12 months, and due to related party, which is short term in nature. The Company has current assets of $47,970 to settle current obligations of $1,835,521.

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BOND RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements

March 31, 2023 (all amounts are expressed in United States dollars) (Unaudited)

7. Financial Instruments and Risk Management (continued)

• (b) Liquidity risk - (continued)

Obligations due in the period ended							2027 and
March 31,	2024		2025		2026		beyond
Trade and other payables	$ 901,101	$	-	$	-	$	-
Due to related party	$ 934,420	$	-	$	-	$	-

• (c) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk is comprised of three types risk: currency risk, interest rate risk and other price risk.

• i. Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Bond is exposed to foreign currency exchange rate fluctuations as the Company trades on a Canadian Stock Exchange and raises funds in Canadian dollars. Canadian cash and accrued liabilities is CAD$1,908 and CAD$138,528 respectively, converted at $1.3533 USD to CAD.

ii. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any exposure to changes in interest rates and is therefore not exposed to this risk.

iii. Other price risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Currently the Company does not have commercial operations and is therefore not exposed to this risk. Commodity prices generally fluctuate beyond the control of the Company. Factors which contribute to the fluctuation are, but not limited to, demand, forward sales, worldwide production, speculative hedging activities, and bank lending rates.

(d) Fair value of financial instruments

Fair value represents the price at which a financial instrument could be exchanged in an orderly market, in an arm’s length transaction between knowledgeable and willing parties who are under no compulsion to act. The Company classifies the fair value of the financial instruments according to the following hierarchy based on the amount of observable inputs used to value the financial instrument:

• Level 1 fair value measurements are those derived from quoted prices (adjusted) in the active market for identical assets or liabilities.

• Level 2 fair value measurements are those derived from inputs other than quoted prices that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (derived from prices).

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BOND RESOURCES INC. Notes to the Condensed Interim Consolidated Financial Statements

March 31, 2023 (all amounts are expressed in United States dollars) (Unaudited)

7. Financial Instruments and Risk Management (continued)

• (d) Fair value of financial instruments - (continued)

• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the assets or liability that are not based on observable market data (unobservable inputs).

The carrying value of cash, accounts payable and accrued liabilities and due to related party approximates their fair values due to the short-term nature of these instruments.

8. Capital Management

The Company manages its capital in a manner consistent with the risk characteristics of the assets it holds. All financing, including equity and debt, are analyzed by management and approved by the Board of Directors.

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern and provide returns for shareholders and to facilitate the development of its core business.

The Company considers shareholders’ equity to be capital of the Company, in the amount of $(1,691,446) (June 30, 2022 - $868,166). The Company does not have any externally imposed restrictions on its capital.

The Company’s strategy for managing capital did not change during the period ended March 31, 2023.

9. Segmented Information

The Company operates in two reportable geographical segments, being the United States and Canada, and one operating segment in the United States. All non-current assets are located in the United States.

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