Cliffmont Resources Ltd. — Interim / Quarterly Report 2021

May 25, 2021

CLIFFMONT RESOURCES LTD.

CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED MARCH 31, 2021 (Unaudited) (Expressed in Canadian Dollars)

Notice of No Auditor Review of Condensed Interim Financial Statements

In accordance with National Instrument 51-102 Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed interim financial statements they must be accompanied by a notice indicating that the condensed interim financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim financial statements of the Company for the six months ended March 31, 2021 have been prepared by and are the responsibility of the Company’s management. The Company’s external auditors have not performed a review of these condensed interim financial statements.

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CLIFFMONT RESOURCES LTD. Interim Statements of Financial Position (Expressed in Canadian dollars) (Unaudited)

March 31, 2021	September 30, 2020
Assets Current Cash $ 785 Taxes recoverable (Note 4) 1,218 Prepaids 2,034	$ 840 593 3,406
Total Assets $ 4,037	$ 4,839
Liabilities Current Accounts payable and accrued liabilities (Notes 5,9) $ 547,009 Short-term loans (Notes 5,9) 90,664	$ 548,117 71,156
Total Liabilities 637,673	619,273
Shareholders’ Deficiency Share capital(Note 6) 32,553,618 Reserves(Note 7) 1,392,034 Deficit (34,579,288)	32,553,618 1,392,034 (34,560,086)
Total Shareholders’Deficiency (633,636)	(614,434)
Total Liabilities and Shareholders’Deficiency $ 4,037	$ 4,839

Nature of Operations and Going Concern (Note 1)

Approved and authorized for issuance by the Company’s Board of Directors on May 21, 2021.

“Jeff Tindale”	, Director
“Nick Demare”	, Director

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

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CLIFFMONT RESOURCES LTD. Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars) (Unaudited)

CLIFFMONT RESOURCES LTD. Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars) (Unaudited)	CLIFFMONT RESOURCES LTD. Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars) (Unaudited)
Three Months Ended March 31, Six Months Ended March 31,
2021 $ 2020 $ 2021 $ 2020 $
General and Administration Expenses Interest on short-term loans 2,222 1,629 4,111 Office and administration 65 71 38 Professional fees 7,653 306 8,661 Transferagent andfilingfees 4,571 2,147 6,381	2,647 3,383 306 9,550
TotalGeneralandAdministrativeExpenses (14,511) (4,153) (19,191)	(15,886)
Other Items Foreignexchange (4) (10) (11)	(8)
TotalOther Items (4) (10) (11)	(8)
Net and Comprehensive Loss (14,515) (4,163) (19,202)	(15,894)
Basic and Diluted(Loss) Per Common Share (0.00) (0.00) (0.00)	(0.00)
Weighted Average Number of Common Shares Outstanding 8,776,101 8,776,101 8,776,101	8,776,101

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

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CLIFFMONT RESOURCES LTD. Interim Statements of Changes in Shareholders’ Deficiency (Expressed in Canadian dollars) (Unaudited)

Six Months Ended March 31, 2020

	Six Months Ended March 31, 2020	Six Months Ended March 31, 2020
	Share Capital Reserves # of Shares Amount Share-based Payments Deficit Total Shareholders’ Deficiency
Balance, October 1, 2019 Netlossforthe period	8,776,101 $ 32,553,618 $ 1,392,034 $ (34,519,226) $ (573,574) - - - (15,894) (15,894)
Balance, March 31, 2020	8,776,101 $32,553,618$ 1,392,034$ (34,535,120) $ (589,468)
	Six Months Ended March 31, 2021
	**Share Capital **	Reserves Share-based Payments Deficit Total Shareholders’ Deficiency
	# of Shares Amount
Balance, October 1, 2020 Net loss for the period	8,776,101 $ 32,553,618 - -	$ 1,392,034 $ (34,560,086) $ (614,434) - (19,202) (19,202)
Balance, March 31, 2021	8,776,101 $32,553,618	$ 1,392,034$ (34,579,288) $ (633,636)

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

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CLIFFMONT RESOURCES LTD.

Interim Statements of Cash Flows (Expressed in Canadian dollars) (Unaudited)

CLIFFMONT RESOURCES LTD. Interim Statements of Cash Flows (Expressed in Canadian dollars) (Unaudited)
	Six Months Ended
	March 31,
	2021	2020
	$	$
Cash Flows from Operating Activities
Loss for the period	(19,202)	(15,894)
Adjustments for items not involving cash
Accrued interest	4,111	2,647
Changes in non-cash working capital items
(Increase) decrease in taxes recoverable	(625)	6,650
Decrease (increase) in prepaids	1,372	(2,156)
Decreaseinaccounts payable and accruedliabilities	(1,108)	(19,809)
	(15,452)	(28,562)
Cash Flows from Financing Activities
Short-term loanproceeds	15,397	28,173
Change in Cash During the Period	(55)	(389)
Cash, Beginning of Period	840	447
Cash, End of Period	785	58
Cash Paid During the Period for Interest	-	-
Cash Paid During the Period for Income Taxes	-	-

SUPPLEMENTAL CASH FLOW INFORMATION (Note 8)

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

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CLIFFMONT RESOURCES LTD. Notes to Condensed Interim Financial Statements For the six months ended March 31, 2021 (Expressed in Canadian dollars, unless otherwise stated) (Unaudited)

1. NATURE OF OPERATIONS AND GOING CONCERN

Cliffmont Resources Ltd. (the “Company”) is a junior resource company listed on the TSX Venture Exchange (“TSXV”), having a symbol CMO.H, as a Tier 2 mining issuer. The head office is located at 750-1095 West Pender Street, Vancouver, B.C. V6E 2M6 and the registered office of the Company is located at Suite 1305-1090 West Georgia Street, Vancouver, British Columbia V6E 3V7.

As at March 31, 2021, the Company had a working capital deficiency of $633,636 (Sep 30, 2020 – $614,434) and a deficit of $34,579,288 (Sep 30, 2020 - $34,560,086). At present, the Company has no producing properties and consequently has no current operating income or cash flows. These material uncertainties may cast significant doubt upon the Company’s ability to continue as a going concern. The Company expects to generate the necessary financial resources through the issuance of debt or equity. While the Company has been successful in securing financings in the past, there can be no assurance that it will be able to do so in the future. Accordingly, these financial statements do not give effect to adjustments, if any, which would be necessary should the Company be unable to continue as a going concern and, therefore, be required to realize its assets and liquidate its liabilities in other than the normal course of business and at amounts which may differ from those shown in the financial statements.

In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, customers, economies, and financial markets globally, potentially leading to an economic downturn. It has also disrupted the normal operations of many businesses, including the Company’s. This outbreak could decrease spending, adversely affect and harm our business and results of operations. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time.

2. BASIS OF PRESENTATION

These condensed interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (“IFRS”), and in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (“IASB”). These condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended September 30, 2020, which have been prepared in accordance with IFRS as issued by the IASB. The accounting policies followed in these condensed interim financial statements are consistent with those applied in the Company’s consolidated financial statements for the year ended September 30, 2020.

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, revenue and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods.

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CLIFFMONT RESOURCES LTD. Notes to Condensed Interim Financial Statements For the six months ended March 31, 2021 (Expressed in Canadian dollars, unless otherwise stated) (Unaudited)

2. BASIS OF PRESENTATION (cont’d)

The condensed interim financial statements have been prepared on a historical cost basis and have been prepared using the accrual basis of accounting except for cash flow information. These condensed interim financial statements are presented in Canadian dollars, unless specifically indicated otherwise, which is the Company’s functional currency.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied by the Company in these unaudited condensed interim financial statements are the same as those applied to the audited financial statements as at and for the year ended September 30, 2020.

The Company has performed an assessment of new IFRS pronouncements that are not yet effective. The Company has assessed that the impact of adopting these accounting standards on its financial statements would not be significant.

4. TAXES RECOVERABLE

As at March 31, 2021, the Company had $1,218 (Sep 30, 2020 - $593) in Goods and Services Tax (GST) recoverable from the federal government of Canada.

5. ACCOUNTS PAYABLE AND SHORT-TERM LOANS

Current: Trade payables Short-term loans	March 31, 2021 $ 547,009 90,664 637,673	September 30, 2020 $ 548,117 71,156
		619,273

As at March 31, 2021, the Company has received from officers and directors, or from companies under their control, short-terms loans in the amounts as follows:

CEO Director Accrued interest	March 31, 2021 $ 55,510 25,000 10,154 90,664	September 30, 2020 $ 40,112 25,000 6,044
		71,156

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CLIFFMONT RESOURCES LTD. Notes to Condensed Interim Financial Statements For the six months ended March 31, 2021 (Expressed in Canadian dollars, unless otherwise stated) (Unaudited)

5. ACCOUNTS PAYABLE AND SHORT-TERM LOANS (cont’d)

The short-term loans bear interest at 10% per annum, compounded monthly and are payable on demand. During the six months ended March 31, 2021 the Company accrued interest of $4,111 (March 31, 2020 - $2,647) relating to these short-term loans.

6. SHARE CAPITAL

Authorized: Unlimited common shares without par value Unlimited preferred shares

During the six months ended March 31, 2021 and the year ended September 30, 2020 the Company did not complete any financings.

7. RESERVES

Stock options

The Company has a stock option plan (the “Stock Option Plan”) under which it may grant options to directors, officers and consultants for up to 10% of the issued and outstanding common shares.

Under the plan, the exercise price of an option may not be less than the closing market price during the trading day immediately preceding the date of the grant of the option, less any applicable discount allowed by the TSXV. The options can be granted for a maximum term of five years and vest at the discretion of the board of directors. During the six months ended March 31, 2021 and March 31, 2020, the Company did not grant any stock options or have any stock options outstanding.

8. SUPPLEMENTAL CASH FLOW INFORMATION

There were no non-cash activities conducted by the Company during the six months ended March 31, 2021.

9. RELATED PARTY TRANSACTIONS

Key management personnel includes those persons having authority and responsibility for planning, directing and controlling the activities of the Company as a whole. The Company has determined that key management personnel consists of members of the Company’s Board of Directors and corporate officers.

Fees and interest paid or accrued to directors and officers of the Company, or private corporations owned by the individuals, for the six months ended March 31, 2021 and 2020 is as follows:

		Mar 31,2021	Mar 31,2020
Administration fees	$	1,308 $	306
Interest on short-term loans	$	4,111 $	2,647

As at March 31, 2021, there was $363,901 (2020 - $363,901) payable to current and former directors and officers of the Company or private corporations owned by the individuals and is included in accounts payable and accrued liabilities.

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CLIFFMONT RESOURCES LTD. Notes to Condensed Interim Financial Statements For the six months ended March 31, 2021 (Expressed in Canadian dollars, unless otherwise stated) (Unaudited)

9. RELATED PARTY TRANSACTIONS (cont’d)

Short-term loans

Included in short-term loans are loans payable to the Chief Executive Officer in the principal amount of $55,510 and a loan payable to a company controlled by a director of the Company in the principal amount of $25,000. During the six months ended March 31, 2021, the CEO loaned the Company principal amounts of $15,398 (2020 - $28,173). During the six months ended March 31, 2021 the Company accrued interest of $4,111 (2020 - $2,647) relating to these short-term loans.

10. SEGMENTED INFORMATION

The Company currently operates in one reporting segment being the acquisition of exploration and evaluation assets in Canada.

11. CAPITAL MANAGEMENT

The Company’s objective when managing capital, defined as components of shareholders’ deficiency, is to safeguard the entity’s ability to continue as a going concern, so that it can continue to acquire and explore mineral interests. The Company funds all administration and exploration programs from the issue of shares, generally through private placements.

The Company is not subject to any externally imposed capital requirements and there have been no changes to capital management practices during the six months ended March 31, 2021.

12. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Credit Risk

Credit risk is the risk of potential loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash and receivables. Cash is held in a large Canadian financial institution. Receivables consist primarily of Goods and Services Tax due from the Federal Government of Canada.

Management believes that the credit risk concentration with respect to cash and receivables is low. The Company currently has limited credit risk from operations.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due. The Company prepares expenditure budgets which are regularly monitored and updated as considered necessary.

To facilitate ongoing corporate, general and administrative overhead, the Company raises funds through private equity placements, public offerings and option agreements with third parties. As at March 31, 2021, the Company had cash of $785 (Sep 30, 2020 - $840) to settle current liabilities of $637,673 (Sep 30, 2020 - $619,273).

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. There is limited interest rate risk due to the short-term nature of the Company’s financial instruments.

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CLIFFMONT RESOURCES LTD. Notes to Condensed Interim Financial Statements For the six months ended March 31, 2021 (Expressed in Canadian dollars, unless otherwise stated) (Unaudited)

12. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (cont’d)

Foreign Currency Risk

The Company is not currently exposed to significant foreign currency risk on fluctuations related to cash balances that are denominated in United States Dollars. The Company has not entered into any agreements or purchased any instruments to hedge possible currency risks at the time.

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