Generic Gold Corp. — Audit Report / Information 2019

Apr 29, 2020

GENERIC GOLD CORP.

CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2019 AND 2018 (EXPRESSED IN CANADIAN DOLLARS)

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Independent Auditor’s Report

To the Shareholders of Generic Gold Corp.

Opinion

We have audited the consolidated financial statements of Generic Gold Corp. and its subsidiary (the “Company”), which comprise the consolidated statements of financial position as at December 31, 2019 and 2018, and the consolidated statements of loss and comprehensive loss, consolidated statements of cash flows and consolidated statements of changes in shareholders’ (deficiency) equity for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at December 31, 2019 and 2018, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards (“IFRS”)

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 consolidated 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 consolidated financial statements in Canada. 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 in the consolidated financial statements, which indicates that the Company incurred a net loss of $258,038 during the year ended December 31, 2019 and, as of that date, the Company’s current liabilities exceeded its current assets by $282,386. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that material uncertainties exist that 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 Management’s Discussion and Analysis

Our opinion on the consolidated 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 consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially

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inconsistent with the consolidated 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 consolidated financial statements

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

In preparing the consolidated 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 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 consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated 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 risks 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

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are required to draw attention in our auditor’s report to the related disclosures in the consolidated 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 consolidated financial statements, including the disclosures, and whether the consolidated 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 of the audit resulting in this independent auditor’s report is Chris Milios

McGovern Hurley LLP

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Chartered Professional Accountants Licensed Public Accountants

Toronto, Ontario April 28, 2020

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Generic Gold Corp. Consolidated Statements of Financial Position (Expressed in Canadian Dollars)

Generic Gold Corp. Consolidated Statements of Financial Position (Expressed in Canadian Dollars)
		As at		As at
		December 31,	December 31,
		2019		2018
ASSETS
Current assets Cash	$	-	$	1,230
Amounts receivable and other assets(note 5)		37,149		57,415
Total assets	$	37,149	$	58,645
LIABILITIES AND SHAREHOLDERS' (DEFICIENCY)
Current liabilities
Amountspayable and other liabilities(notes 6 and 17)	$	319,535	$	82,993
Shareholders' deficiency
Share capital (note 7)		7,502,000		7,502,000
Reserves (notes 8 and 9)		1,359,646		1,573,776
Deficit		(9,144,032)		(9,100,124)
Total shareholders' (deficiency)		(282,386)		(24,348)
Total liabilities and shareholders' (deficiency)	$	37,149	$	58,645

Nature of operations and going concern (note 1) Contingencies (note 16) Subsequent events (note 19)

Approved on behalf of the Board:

(Signed) "Kelly Malcolm", Director

(Signed) "Victor Cantore", Director

The accompanying notes are an integral part of these consolidated financial statements. - 1 -

Generic Gold Corp.

Consolidated Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars)

	Year Ended	Year Ended	Year Ended	Year Ended
	December 31,		December 31,
		2019		2018
Operating expenses
Exploration and evaluation expenditures (notes 4 and 11)	$	-	$	564,308
General and administrative (notes 12 and 17)		258,038		1,026,711
Reverse takeover transaction costs(note 3)		-		717,804
Net loss and comprehensive loss for theyear	$	(258,038)	$	(2,308,823)
Lossper share - basic and diluted(note 10)	$	(0.01)	$	(0.06)
Weighted average number of common shares outstanding
- basic and diluted(note 10)		37,953,388		36,512,320

The accompanying notes are an integral part of these consolidated financial statements. - 2 -

Generic Gold Corp. Consolidated Statements of Cash Flows

(Expressed in Canadian Dollars)

Generic Gold Corp. ConsolidatedStatements of Cash Flows (Expressed in Canadian Dollars)
	Year Ended			Year Ended
	December		31,	December 31,
		2019		2018
Operating activities
Net loss for the year	$	(258,038)		$ (2,308,823)
Adjustments for: Share-based payments			-		557,760
Reverse takeover transaction costs			-		717,804
Non-cash working capital items:
Amounts receivable and other assets		20,266			35,508
Amountspayable and other liabilities		236,543			(55,407)
Net cash flows from operating activities		(1,230)		(1,053,158)
Investing activity
Cash acquired from Amalgamation			-		5,841
Net cash flows from investing activity			-		5,841
Financing activities
Issue of common shares (note 7(b)(i)(ii))			-		358,515
Share issuance costs			-		(4,386)
Net cash flows from financing activities			-		354,129
Net change in cash		(1,230)			(693,188)
Cash, beginning ofyear		1,230			694,418
Cash, end ofyear	$		-	$	1,230
Supplemental information
Common shares issued as commission	$		-	$	34,860
Broker warrants issued	$		-	$	11,760

The accompanying notes are an integral part of these consolidated financial statements. - 3 -

Generic Gold Corp. Consolidated Statement of Changes in Shareholders' (Deficiency) Equity (Expressed in Canadian Dollars)

	Share capital Number Amount	Reserves Share-based Warrant payments reserve reserve Deficit Total 856,827 - (6,791,301) 688,982 - - - 623,416 120,750 - - 315,000 17,019 - - 43,515 9,660 - - 34,860 - - - (34,860) 11,760 - - - - - - (4,386) - - - 60,188 - 557,760 - 557,760 - - (2,308,823) (2,308,823) 1,016,016 $ 557,760 $ (9,100,124) $ (24,348) - (214,130) 214,130 - - - (258,038) (258,038)
Balance, December 31, 2017 Issuance of common shares pursuant to Amalgamation (note 3) Issuance of units - flow-through (note 7(b)(i)) Issuance of units (note 7(b)(i)) Issuance of units as commission (note 7(b)(i)) Cost of issue - commission (note 7(b)(i)) Cost of issue - warrants (note 7(b)(i)) Cost of issue - cash Shares issued pursuant to debt settlement Share-based payments (note 9) Net loss for theyear	33,356,968 6,623,456 3,001,520 623,416 1,050,000 194,250 193,400 26,496 84,000 25,200 - (34,860) - (11,760) - (4,386) 267,500 60,188 - - - -
Balance, December 31, 2018 Expired share-based payments (note 9) Net loss for theyear	37,953,388 $ 7,502,000 $ - - - -
Balance, December 31, 2019	37,953,388 $ 7,502,000 **$ **	1,016,016$ 343,630$ (9,144,032) $(282,386)

The accompanying notes are an integral part of these consolidated financial statements. - 4 -

Generic Gold Corp. Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

1. Nature of operations and going concern

Generic Gold Corp. (the "Company" or "Generic Gold") was incorporated under the laws of the Province of Ontario on May 30, 2017 as Generic Gold Corporation ("Original Generic"). The Company's principal business activity is mineral exploration focused on high-grade gold opportunities in Yukon, Canada.

On February 20, 2018, Original Generic completed a transaction (the "Amalgamation") with Wamco Technology Group Ltd. ("Wamco"). The Amalgamation consisted of the acquisition by Wamco of all of the issued and outstanding securities in the capital of Original Generic by way of a three-cornered amalgamation, pursuant to which 2604935 Ontario Inc., a wholly-owned subsidiary of Wamco, amalgamated with Original Generic to form the resulting issuer, 1989670 Ontario Limited, a wholly-owned subsidiary of Wamco (note 3). On February 22, 2018, Wamco filed articles of amendment to change its name to “Generic Gold Corp.”.

On February 28, 2018, Generic Gold received final approval to list its common shares on the Canadian Securities Exchange ("CSE"). Generic Gold began trading on the CSE on March 1, 2018 under the symbol "GGC". The head office of the Company is located at 141 Adelaide Street West, Suite 1660, Toronto, Ontario, M5H 3L5.

Generic Capital Corporation is the parent company of Generic Gold and owns approximately 67% of the Company's outstanding share capital as at December 31, 2019. (see note 17)

These consolidated financial statements of the Company were reviewed, approved and authorized for issue by the Board of Directors on April 28, 2020.

These consolidated financial statements have been prepared using accounting policies applicable to a going concern, which contemplates the realization of assets and settlement of liabilities in the normal course of business as they become due.

The Company is at an exploration stage and as is common with many exploration companies, it raises financing to support its exploration and acquisition activities. The Company has incurred a current net loss of $258,038 for the year ended December 31, 2019 and has an accumulated deficit of $9,144,032 as at December 31, 2019. In addition, the Company had a working capital deficiency of $282,386 as at December 31, 2019.

Existing funds may not be sufficient to explore potential exploration project acquisitions and in due course, further funding will be required. In the event that the Company is unable to secure further financing it may not be able to complete the development of its projects.

Although the Company has taken steps to verify title to the properties on which it is conducting exploration and in which it has an interest, in accordance with industry standards for the current stage of operations of such properties, these procedures do not guarantee the Company's title. Property title may be subject to government licensing requirements or regulations, unregistered prior agreements, social licensing requirements, unregistered claims, aboriginal claims, and non-compliance with regulatory and environmental requirements. The Company’s property interests may also be subject to increases in taxes and royalties, renegotiation of contracts and political uncertainty.

Due to limited working capital, the Company's ability to continue as a going concern is dependent on its ability to obtain additional sources of financing to successfully explore, evaluate and develop mineral projects, if they are proven successful, and ultimately, to achieve profitable operations. The success of these endeavours cannot be predicted at this time. These conditions indicate the existence of material uncertainties that cast significant doubt about the Company's ability to continue as a going concern. These financial statements do not reflect adjustments to the carrying values and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern, and such adjustments may be material.

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Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

Generic Gold Corp.

2. Significant accounting policies

(a) Statement of compliance

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board (“IASB”) and Interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). The accounting policies set out below have been applied consistently to the periods presented in these consolidated financial statements unless otherwise noted below.

(b) Basis of presentation

These consolidated financial statements have been prepared on a historical cost basis except for financial instruments classified as fair value through profit or loss ("FVTPL"). In addition, these consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information.

In the preparation of these consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the period. Actual results could differ from these estimates. Of particular significance are the estimates and assumptions used in the recognition and measurement of items included in note 2(n).

(c) Subsidiaries

Subsidiaries consist of entities over which the Company is exposed to, or has rights to, variable returns as well as the ability to affect those returns through the power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date control is transferred to the Company and are deconsolidated from the date control ceases. The consolidated financial statements include all the assets, liabilities, revenues, expenses and cash flows of the Company and its subsidiary after eliminating inter-entity balances and transactions.

		Jurisdiction	Nature of Operation	Equity Interest
1989670	Ontario Limited	Canada	Mineral exploration	100%

(d) Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its non-financial assets with finite lives to determine whether there is any indication that those assets have suffered an impairment loss. Where such an indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. The recoverable amount is the higher of an asset’s fair value less cost to sell or its value in use. In addition, long lived assets that are not amortized are subject to an annual impairment assessment.

(e) Exploration and evaluation expenditures

The Company expenses exploration and evaluation expenditures as incurred. Exploration and evaluation expenditures include acquisition costs of exploration properties, property option payments and evaluation activity.

Once a project has been established as commercially viable and technically feasible, related development expenditures are capitalized. This includes costs incurred in preparing the site for mining operations. Capitalization ceases when the mine is capable of commercial production, with the exception of development costs that give rise to a future benefit.

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Generic Gold Corp. Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

2. Significant accounting policies (continued)

(f) Flow-through shares

Flow-through shares are a unique Canadian tax incentive. They are the subject of specific guidance under US GAAP, but there is no equivalent IFRS guidance. Therefore, the Company has adopted a policy whereby flow-through proceeds are allocated between the offering of the common shares and the sale of tax benefits when the common shares are offered. The allocation is made based on the difference between the quoted price of the common shares and the amount the investor pays for the flow-through shares. A liability is recognized for the premium paid by the investors and is then derecognized in the period of renunciation. The recognition of deferred income tax liability upon renunciation of the flow-through expenditure is recorded as income tax expense in the period of renunciation. Any difference between the amount of the liability component derecognized and deferred income tax liability recognized is recorded in the statement of loss and comprehensive loss.

(g) Cash

Cash in the statement of financial position comprise cash on hand and at banks. The Company's cash is invested with major financial institutions in business accounts.

(h) Provisions

A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The Company had no material provisions at December 31, 2019 or 2018.

(i) Loss per share

The Company presents basic and diluted loss per share data for its common shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted loss per share is determined by adjusting the weighted average number of common shares outstanding to assume conversion of all dilutive potential common shares.

(j) Income taxes

Income tax on the profit or loss for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.

Current tax expense is the expected tax payable on the taxable income for the period, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous periods.

Deferred tax is provided using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes and the initial recognition of assets or liabilities that affect neither accounting nor taxable profit. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the financial position reporting date.

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Generic Gold Corp. Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

2. Significant accounting policies (continued)

(j) Income taxes (continued)

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. The Company does not record deferred tax assets to the extent that the Company does not consider it probable that a deferred tax asset will be recovered.

(k) Restoration, rehabilitation and environmental obligations

A legal or constructive obligation to incur restoration, rehabilitation and environmental costs may arise when environmental disturbance is caused by the exploration, development or ongoing production of an exploration property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided for, as soon as the obligation to incur such costs arises. Discount rates using a pretax rate that reflects the time value of money are used to calculate the net present value. These costs are charged against profit or loss over the economic life of the related asset, through amortization using either a unit-of-production or the straight-line method as appropriate. The related liability is adjusted for each period for the unwinding of the discount rate and for changes to the current market-based discount rate, amount or timing of the underlying cash flows needed to settle the obligation. Costs for restoration of subsequent site damage that is created on an ongoing basis during production are provided for at their net present values and charged against profits as extraction progresses.

The Company had no material restoration, rehabilitation and environmental costs as at December 31, 2019 or 2018 as the disturbance to date is minimal.

(l) Share-based payment transactions

The fair value of share options granted is recognized as an expense with a corresponding increase in equity. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee, including directors of the Company.

The fair value of share-based payments to employees is measured at the grant date and recognized over the period during which the options vest. Share-based payments to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The fair value of the options granted is measured using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of share options that are expected to vest. For those options that expire after vesting, the recorded value is transferred to deficit.

Expired warrants are also transferred to deficit.

(m) Financial Instruments

Financial assets

Financial assets are classified as either financial assets at Fair Value through Profit or Loss ("FVTPL"), amortized cost, or Fair Value through other comprehensive Income (“FVTOCI”). The Company determines the classification of its financial assets at initial recognition.

 Financial assets recorded at FVTPL

Financial assets are classified as FVTPL if they do not meet the criteria of amortized cost or FVTOCI. Gains or losses on these items are recognized in profit or loss.

• Amortized cost

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Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

Generic Gold Corp.

2. Significant accounting policies (continued)

(m) Financial Instruments (continued)

Financial assets are classified as measured at amortized cost if both of the following criteria are met and the financial assets are not designated as at fair value through profit and loss: 1) the object of the Company’s business model for these financial assets is to collect their contractual cash flows; and 2) the asset’s contractual cash flows represent "solely payments of principal and interest".

The Company’s cash and receivables are classified as financial assets and measured at amortized cost.

Financial liabilities

Financial liabilities are classified as either financial liabilities at fair value through profit or loss or at amortized cost. The Company determines the classification of its financial liabilities at initial recognition.

 Amortized cost

Financial liabilities are classified as measured at amortized cost unless they fall into one of the following categories: financial liabilities at FVTPL, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition, financial guarantee contracts, commitments to provide a loan at a below-market interest rate, or contingent consideration recognized by an acquirer in a business combination.

The Company’s accounts payable and other liabilities do not fall into any of the exemptions and are therefore classified as measured at amortized cost.

Transaction costs

Transaction costs associated with financial instruments, carried at FVTPL, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability.

Subsequent measurement

Instruments classified as FVTPL are measured at fair value with unrealized gains and losses recognized in profit or loss. Instruments classified as amortized cost are measured at amortized cost using the effective interest rate method. Instruments classified as FVTOCI are measured at fair value with unrealized gains and losses recognized in other comprehensive income.

Derecognition

The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled, or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

Expected Credit Loss Impairment Model

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in full or when the financial asset is more than 90 days past due.

The carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off.

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Generic Gold Corp. Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

2. Significant accounting policies (continued)

(n) Significant accounting judgments and estimates

The preparation of these financial statements in conformity with IFRS requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These financial statements include estimates that, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant assumptions about the future that management has made that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:

(i) Income, value added, withholding and other taxes:

The Company is subject to income, value added, withholding and other taxes. Significant judgment is required in determining the Company's provisions for taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. The determination of the Company's income, value added, withholding and other tax liabilities requires interpretation of complex laws and regulations. The Company's interpretation of taxation law as applied to transactions and activities may not coincide with the interpretation of the tax authorities. All tax related filings are subject to government audit and potential reassessment subsequent to the financial statement reporting period. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the tax related accruals and deferred income tax provisions in the period in which such determination is made.

(ii) Going concern:

The assessment of the Company's ability to continue as a going concern involves judgment regarding future funding available for its operations and working capital requirements as discussed in note 1.

(iii) Share-based payments:

Management determines costs for share-based payments using market-based valuation techniques. The fair value of the market-based and performance-based share awards are determined at the date of grant using generally accepted valuation techniques. Assumptions are made and judgment used in applying valuation techniques. These assumptions and judgments include estimating the future volatility of the stock price, expected dividend yield, future employee turnover rates and future employee stock option exercise behaviours and corporate performance. Such judgments and assumptions are inherently uncertain. Changes in these assumptions affect the fair value estimates.

(iv) Decommissioning, restoration and similar liabilities:

Decommissioning, restoration and similar liabilities are estimated based on the Company's interpretation of current regulatory requirements, constructive obligations and are measured at fair value. Fair value is determined based on the net present value of estimated future cash expenditures for the settlement of decommissioning, restoration or similar liabilities that may occur upon decommissioning of the mine. Such estimates are subject to change based on changes in laws and regulations and negotiations with regulatory authorities.

(v) Contingencies:

See note 16.

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Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

Generic Gold Corp.

2. Significant accounting policies (continued)

• (n) Significant accounting judgments and estimates (continued)

Changes in accounting policies

IFRS 16, Lease

Effective January 1, 2019, the Company adopted IFRS 16 – Leases. The standard was issued by the IASB on January 13, 2016, and replaces IAS 17, “Leases”. IFRS 16 brings most leases on-balance sheet for lessees under a single model, eliminating the distinction between operating and financing leases. Lessor accounting however remains largely unchanged and the distinction between operating and finance leases is retained. The adoption of this new standard did not have a material impact on the Company’s financial statements.

3. Amalgamation

On February 20, 2018, the Company completed the Amalgamation with Wamco. The Amalgamation consisted of the acquisition by Wamco of all of the issued and outstanding securities in the capital of Original Generic by way of a three-cornered amalgamation, pursuant to which 2604935 Ontario Inc., a wholly-owned subsidiary of Wamco, amalgamated with Original Generic to form the resulting issuer. The name of the resulting issuer is 1989670 Ontario Limited, a wholly-owned subsidiary of Wamco. As part of the Amalgamation, Wamco changed its name to "Generic Gold Corp.".

Pursuant to the Amalgamation, Original Generic shares and warrants were exchanged on a one-for-one basis for the issuance of Generic Gold shares and warrants.

As a result of the Amalgamation, the shareholders of Original Generic owned 91.7% of the outstanding shares of the amalgamated entity. The substance of the transaction is a reverse acquisition of a non-operating company. The transaction does not constitute a business combination, as Wamco does not meet the definition of a business under IFRS 3, Business Combinations. As a result, the transaction is accounted for as a capital transaction with Original Generic being identified as the acquirer and the equity consideration accounted for in accordance with IFRS 2, Sharebased Payment, measured at fair value.

The fair value of the consideration is as follows:

air value of the consideration is as follows:
Fair value of 3,001,520 Generic Gold common shares	$	623,416
The consideration has been allocated as follows:
Cash	$	5,841
Accounts payable and accrued liabilities		(100,229)
Reverse takeover transaction cost		717,804
	$	623,416

The value of the Generic Gold common shares was based on the share price of the June 27, July 20 and September 22, 2017 private placements of $0.2077.

As Generic Gold has issued shares with a value in excess of the assets received, the difference is recognized in operations as a reverse takeover transaction cost. The amount of $717,804 recognized as a reverse takeover transaction cost is the difference between the fair value of the consideration paid and the net identifiable liabilities of Wamco assumed by Generic Gold, and is charged to operating expenses.

• 11 -

Generic Gold Corp.

Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

4. Mineral properties

The Company's property interests include the VIP Property (located in the Whitehorse Mining District), and other properties located in various regions of the Yukon Territory, Canada. The Company is continuing the evaluation of the precious metals potential of properties such as VIP, Livingstone and Goodman. The Company holds a 2% net smelter return (“NSR”) royalty on these properties.

5. Amounts receivable and other assets

		As at		As at
		December 31,		December 31,
		2019		2018
Sales tax receivable - (Canada)	$	27,149	$	52,995
Prepaid expenses		10,000		4,420
	$	37,149	$	57,415

6. Amounts payable and other liabilities

Amounts payable and other liabilities of the Company are principally comprised of amounts outstanding for purchases relating to exploration and acquisition costs and general operating activities.

	As at		As at
	December 31,		December 31,
	2019		2018
Trade payables	$ 289,535	$	60,438
Accrued liabilities	130,000		22,555
	$ 319,535	$	82,993

• 12 -

Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

Generic Gold Corp.

7. Share capital

a) Authorized share capital

The authorized share capital consists of an unlimited number of common shares. The common shares do not have a par value. All issued shares are fully paid.

b) Common shares issued

(i) On July 23 and September 21, 2018, the Company completed the first and second tranches of a private placement financing of 1,050,000 flow-through units at a price of $0.30 per flow-through unit and 193,400 units at price of $0.225 per unit for a gross proceeds of $358,515. Each flow-through unit consists of one flow-through common share of the Company and one common share purchase warrant. Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share of the Company at a price of $0.50 per common share for a period of 36 months following the closing date.

In connection with the private placement, a finder's fee was paid to certain eligible finders in an amount equal to 8% of proceeds raised. The finder's fee was comprised of the issuance of 84,000 commission units of the Company, at a fair value of $0.30 per commission unit. Each commission unit consists of one common share of the Company and one warrant.

The fair value of the 1,327,400 warrants was estimated at $147,429 using the Black-Scholes option pricing model. The following weighted average assumptions were used: risk-free interest rate - ranging from 2.03% to 2.21%; expected volatility - 100% which is based on the historical volatility of a comparable company, Nevada Zinc; expected dividend yield - nil; and expected life - 36 months.

In addition, an aggregate of 84,000 broker warrants were issued representing an amount equal to 8% of the number of common shares placed by eligible finders pursuant to the private placement. Each broker warrant entitles the holder to acquire one unit of the Company at an exercise price of $0.30 per unit for a period of 36 months from the date of issuance. The fair value of the 84,000 broker warrants was estimated at $11,760 using the Black-Scholes option pricing model. The following weighted average assumptions were used: risk-free interest rate - 2.03%; expected volatility - 100% which is based on the historical volatility of a comparable company, Nevada Zinc; expected dividend yield - nil; and expected life - 36 months.

(ii) On October 17, 2018, the Company entered into a debt settlement agreement with an arm’s length creditor pursuant to which the Company has agreed to settle an aggregate of $60,188 of indebtedness through the issuance of an aggregate of 267,500 common shares of the Company at a price of $0.225 per common share. The common shares issued pursuant to the debt settlement will be subject to a four month and one day hold period pursuant to applicable securities laws.

• 13 -

Generic Gold Corp. Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

8. Warrants

The following table reflects the continuity of warrants for the periods presented:

	Number of	Weighted average
	warrants	exercise price ($)
Balance, December 31, 2017	8,977,139	0.49
Issued(note 7(b)(i))	1,411,400	0.49
Balance, December 31, 2019 and 2018	10,388,539	0.49

The following table reflects the warrants issued and outstanding as of December 31, 2019:

	Number of
	warrants	Grant date	Exercise
Issue date	outstanding	fair value ($)	price ($)	Expiry date
June 27, 2017	176,400	24,167	0.30	March 1, 2020(1)
July 20, 2017	155,507	21,460	0.30	March 1, 2020(1)
September 22, 2017	288,264	39,780	0.30	March 1, 2020(1)
June 27, 2017	3,096,300	285,815	0.50	June 27, 2020
July 20, 2017	2,817,473	260,077	0.50	July 20, 2020
September 22, 2017	2,443,195	225,528	0.50	September 22, 2020
July 23, 2018	1,134,000	130,410	0.50	July 23, 2021
July 23, 2018	84,000	11,760	0.30	July 23, 2021
September 18, 2018	193,400	17,019	0.50	September 21, 2021
	10,388,539	1,016,016	0.49

(1) Each broker warrant entitles the holder to acquire one unit of the Company at an exercise price of $0.30 per unit commencing March 1, 2018, the date of listing of the common shares of the Company on a recognized Canadian stock exchange, and ending 24 months after the date of listing.

• 14 -

Generic Gold Corp. Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

9. Stock options

The following table reflects the continuity of stock options for the periods presented:

	Number of		Weighted average
	stock options		exercise price ($)
Balance, May 31, 2017 and December 31, 2017	-	$	-
Granted(i)(ii)	3,765,000		0.29
Balance, December 31, 2018	3,765,000	$	0.29
Expired	(1,445,000)		0.29
Balance, December 31, 2019	2,320,000	$	0.29

(i) On February 20, 2018, the Company granted a total of 3,225,000 stock options to certain directors, officers and consultants of the Company. The stock options are exercisable at a price of $0.30 per share, expire on February 20, 2023 and vested immediately. The fair value of the stock options was estimated to be $477,300 using the BlackScholes option pricing model on the following assumptions: exercise price of $0.30, risk free interest rate of 2.12%, an expected life of 5 years and an expected volatility of 100%. During the year ended December 31, 2018, share based compensation of $477,300, were recorded in the consolidated statements of loss and comprehensive loss. During the year ended December 31, 2019, 1,175,000 stock options expired.

(ii) On October 17, 2018, the Company granted a total of 540,000 stock options to certain directors, officers and consultants of the Company. The stock options are exercisable at a price of $0.25 per share, expire on October 17, 2021 and vested immediately. The fair value of the stock options was estimated to be $80,460 using the BlackScholes option pricing model on the following assumptions: exercise price of $0.25, risk free interest rate of 2.32%, an expected life of 3 years and an expected volatility of 100%. During the year ended December 31, 2018, share based compensation of $80,460, were recorded in the consolidated statements of loss and comprehensive loss. During the year ended December 31, 2019, 270,000 stock options expired.

The following table reflects the Company's stock options outstanding and exercisable as at December 31, 2019:

			Weighted average
Options	Grant		remaining
outstanding	date fair	Exercise	contractual life
and exercisable	value ($)	price ($)	(years)	Expiry date
2,050,000	303,400	0.30	3.14	February 20, 2023
270,000	40,230	0.25	1.80	October 17,2021
2,320,000	343,630	0.29	2.99

10. Net loss per common share

The calculation of basic loss per share for the year ended December 31, 2019 was based on the loss attributable to common shareholders of $258,038 (2018 - $2,308,823) and the weighted average number of common shares outstanding of 37,953,388 (2018 - 36,512,320). Diluted loss per share for the periods ended December 31, 2019 and 2018 did not include the effect of 10,388,539 (2018 – 10,388,539) and 2,320,000 (2018 - 3,765,000) warrants and options, respectively as they are anti- dilutive.

• 15 -

Generic Gold Corp.

Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

11. Exploration and evaluation expenditures

11. Exploration and evaluation expenditures
	Year Ended		Year Ended
	December	31,	December 31,
	2019			2018
Yukon, Canada
Drilling	$	-	$	481,541
Geological consulting		-		43,894
Camp construction		-		4,625
Transportation		-		17,557
Claim staking		-		11,717
Geophysics		-		10,000
Exploration (recovery)		-		(40,000)
Laboratory and analysis		-		31,759
Miscellaneous		-		3,215
Exploration and evaluation expenditures	$	-	$	564,308

12. General and administrative expenses

12. General and administrative expenses
		Year Ended	Year Ended
	December 31,		December 31,
		2019		2018
Salaries and benefits	$	123,953	$	199,591
Professional fees		65,912		79,165
Office and administrative expenses		10,630		32,495
Accounting fees		34,834		25,494
Transfer agent fees		10,554		40,453
Share-based payments		-		557,760
Investor relations		12,155		91,753
	$	258,038	$	1,026,711

• 16 -

Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

Generic Gold Corp.

13. Capital risk management

The Company manages its capital with the following objectives:

• to ensure sufficient financial flexibility to achieve the ongoing business objectives including funding of future growth opportunities, and pursuit of accretive acquisitions; and

• to maximize shareholder return through enhancing the share value.

The Company monitors its capital structure and makes adjustments according to market conditions in an effort to meet its objectives given the current outlook of the business and industry in general. The Company may manage its capital structure by issuing new shares, repurchasing outstanding shares, adjusting capital spending, or disposing of assets. The capital structure is reviewed by management and the Board of Directors on an ongoing basis.

The Company considers its capital to be equity, which comprises share capital, reserves and deficit, which at December 31, 2019, totaled a deficiency of $282,386.

The Company manages capital through its financial and operational forecasting processes. The Company reviews its working capital and forecasts its future cash flows based on operating expenditures, and other investing and financing activities. The forecast is updated based on activities related to the Company's mineral properties. Selected information is provided to the Board of Directors of the Company. The Company’s capital management objectives, policies and processes have remained unchanged during the years ended December 31, 2019 and 2018.

14. Financial risk management

Financial risk

The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including interest rate risk, foreign currency risk and commodity and equity price risk).

As at December 31, 2019 and 2018, both the carrying and fair value amounts of the Company's amount receivable and other assets and accounts payable and other liabilities are approximately equivalent due to their short term nature.

Risk management is carried out by the Company's management team with guidance from the Board of Directors. The Board of Directors also provides regular guidance for overall risk management. There were credit risk, liquidity risk or market risk for the periods ended December 31, 2019 and 2018.

(i) Credit risk

Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company's credit risk is primarily attributable to cash. Cash is held with select major Canadian chartered banks, from which management believes the risk of loss to be minimal.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its financial obligations as they come due. The Company’s liquidity and operating results may be adversely affected if its access to capital markets is hindered, whether as a result of a downturn in stock market conditions generally or matters specific to the Company. The Company generates cash flow primarily from its financing activities. As at December 31, 2019, the Company had cash of $nil (2018 - $1,230) to settle current liabilities of $319,535 (2018 - $82,993). All of the Company's financial liabilities as at December 31, 2019 are subject to normal trade terms. The Company regularly evaluates its cash position to ensure preservation and security of capital as well as liquidity.

• 17 -

Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

Generic Gold Corp.

14. Financial risk management (continued)

(iii) Market risk

Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates and commodity and equity prices.

(a) Interest rate risk

The Company has cash balances and regularly monitors its cash management policy. As a result, the Company is not subject to significant interest rate risk. The Company periodically monitors the investments it makes and is satisfied with the creditworthiness of its Canadian chartered bank.

(b) Foreign currency risk

The Company's functional and reporting currency is the Canadian dollar and major purchases are transacted in Canadian dollars. Foreign currency risk is the risk that future cash flows of financial instruments will fluctuate as a result of changes in foreign exchange rates.

(c) Commodity and equity price risk

The Company is exposed to price risk with respect to commodity prices. Commodity price risk is defined as the potential adverse impact on earnings and economic value due to commodity price movements and volatilities. The Company closely monitors commodity prices, as they relate to precious and base metals and other minerals, and the stock market to determine the appropriate course of action to be taken by the Company. Commodity price risk could adversely affect the Company. In particular, the Company's future profitability and viability of development depend upon the world market price of precious and base metals and other minerals. Precious and base metals and other mineral prices have fluctuated widely in recent years. There is no assurance that, even if commercial quantities of precious and base metals and other minerals are produced in the future, a profitable market will exist for them. As at December 31, 2019, the Company was not a precious minerals, base metals and other minerals producer. Even so, commodity price risk may affect the completion of future equity transactions such as equity offerings and the exercise of warrants.

15. Segmented information

The Company’s operations comprise a single reporting operating segment engaged in mineral exploration in Canada. As the operations comprise a single reporting segment, amounts disclosed in the statements of loss and comprehensive loss for the periods also represent segmented amounts. All of the Company’s operations, assets and liabilities are in Canada.

16. Contingencies

(a) The Company's exploration activities are subject to government laws and regulations, including tax laws and laws and regulations governing the protection of the environment. The Company believes that its operations comply in all material respects with all applicable past and present laws and regulations. The Company records provisions for any identified obligations, based on management's estimate at the time. Such estimates are, however, subject to changes in laws and regulations.

(b) The Company is party to certain management contracts. These contracts contain clauses requiring additional payments of up to $240,000 be made upon the occurrence of certain events such as change of control. As a triggering event has not taken place, the contingent payments have not been reflected in these consolidated financial statements.

• 18 -

Generic Gold Corp. Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

17. Related party transactions and major shareholders

Related parties include the Board of Directors, officers, close family members and enterprises that are controlled by these individuals as well as certain persons performing similar functions.

The below noted transactions are in the normal course of business and are measured at the exchange amount, as agreed to by the parties, and approved by the Board of Directors.

Remuneration of key management personnel of the Company was as follows:

	Year Ended	Year Ended		Year Ended
	December 31,			December 31,
		2019		2018
Salaries	$	120,000		$ 192,000
Consulting fee		20,000		-
Share-basedpayments		-		518,450
	$	140,000	$	710,450

Included in accounts payable and accrued liabilities are fees owing to officers and directors of $105,713 as at December 31, 2019 (2018 - $15,215). See also Note 16(b).

Major shareholders

To the knowledge of the directors and senior officers of the Company, as at December 31, 2019, no person or corporation beneficially owns or exercises control or direction over common shares of the Company carrying more than 10% of the voting rights attached to all common shares of the Company other than as set out below:

		Percentage of
	Number of	outstanding
Major shareholder	common shares	common shares
Generic Capital Corporation	25,348,814	66.79 %

As at December 31, 2019, the Company had an outstanding balance payable to the major shareholder in the amount of $39,337 (2018 - $nil). This amount is included in accounts payable and other liabilities on consolidated statement of financial position. The balance is unsecured, noninterest bearing and has no fix term of repayment.

• 19 -

Generic Gold Corp.

Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

18. Income taxes

(a) Provision for income taxes

Major items causing the Company's effective income tax rate to differ from the combined Canadian federal and provincial statutory rate of 26.5% were as follows:

	Year Ended	Year Ended	Year Ended	Year Ended
	December 31,		December 31,
		2019		2018
Loss before income taxes	**$ **	(258,038)	$	(2,308,823)
Expected income tax recovery based on statutory rate		(68,000)		(612,000)
Adjustment to expected income tax benefit:
Flow-through renunciation		-		83,475
Share issue cost		(14,000)		(14,000)
Expenses not deductible for tax purposes		4,000		(55,000)
Stock-based compensation		-		148,000
Change in unrecorded deferred tax asset		-		191,525
Change in benefit of tax assets not recognized		78,000		258,000
Deferred income taxprovision(recovery)	$	-	$	-

(b) Deferred income tax

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Company can use the benefits.

	As at		As at
	December 31,		December 31,
	2019		2018
Non-capital loss carry-forwards	$1,065,000	$	775,000
Share issue costs	120,000		175,000
Mineralpropertycosts	1,916,000		1,592,000
Unrecognized deductible temporary differences	$ 3,101,000	$	2,542,000

As at December 31, 2019, the Company had $1,065,000 (2018 - $775,000) of non-capital income tax losses in Canada. The losses expire as follows:

Expiry

2037	$	251,000
2038		509,000
2039		305,000
		1,065,000

• 20 -

Notes to Consolidated Financial Statements Years ended December 31, 2019 and 2018 (Expressed in Canadian Dollars, unless otherwise indicated)

Generic Gold Corp.

19. Subsequent events

On February 19, 2020, the proposed transaction announced on March 25, 2019 with OG DNA Genetics Inc. (“OG DNA”), has been terminated. OG DNA paid the Company $100,000 as termination fee.

Subsequent to December 31, 2019, 620,171 warrants expired. Those warrants had an exercise price of $0.30 each.

Subsequent to year end, there was a global outbreak of a novel coronavirus identified as “COVID-19”. On March 11, 2020, the World Health Organization declared a global pandemic. In order to combat the spread of COVID-19, governments worldwide have enacted emergency measures including travel bans, legally enforced or self-imposed quarantine periods, social distancing and business and organization closures. These measures have caused material disruptions to businesses, governments and other organizations resulting in an economic slowdown and increased volatility in national and global equity and commodity markets. Central banks and governments, including Canadian federal and provincial governments, have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of any interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company and its operations in future periods.

• 21 -