Inventus Mining Corp. — Interim / Quarterly Report 2020

May 6, 2020

INVENTUS MINING CORP. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2020 (EXPRESSED IN CANADIAN DOLLARS) (UNAUDITED)

Notice To Reader

The accompanying unaudited condensed consolidated interim financial statements of Inventus Mining Corp. (the "Company") have been prepared by and are the responsibility of management. The unaudited condensed consolidated interim financial statements have not been reviewed by the Company's auditors.

Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian Dollars)

Unaudited

	March 31,2020		December 31,2019
ASSETS
Current assets
Cash	$725,830	$	26,016
Amounts receivable	51,122		13,410
Prepaid expenses	23,573		14,071
Total current assets	800,525		53,497
Non-current assets
Right-of-use asset (note 3)	58,866		64,217
Total non-current assets	58,866		64,217
Total assets	$859,391	$	117,714
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)Current liabilities
Accounts payable and accrued liabilities	$10,721	$	108,878
Lease obligation (note 4)	19,649		18,570
Total current liabilities	30,370		127,448
Non-current liabilities
Lease obligation (note 4)	46,749		52,113
Total non-current liabilities	46,749		52,113
Total liabilities	77,119		179,561
Shareholders' equity (deficit)
Share capital (note 5)	20,142,893		19,342,675
Warrants (note 7)	571,309		151,179
Contributed surplus	5,438,216		5,386,487
Deficit	(25,370,146)		(24,942,188)
Total shareholders' equity (deficit)	782,272		(61,847)
Total liabilities and shareholders' equity (deficit)	$859,391	$	117,714

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

Nature of Operations and Going Concern (note 1) Contingency (note 12)

Approved on behalf of the Board:

"Stefan Spears" Director (Signed) "Doug Hunter" Director (Signed)

Inventus Mining Corp. Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars) Unaudited

	Three months Three monthsendedMarch 31,2020	endedMarch 31,2019
Expenses
Exploration and evaluation expenditures (note 9)	$306,590	$57,615
Professional fees (note 10)	44,107	17,795
Stock-based compensation (note 6)	41,553	5,315
Office and general (note 10)	25,667	9,757
Depreciation (note 3)	5,351	5,351
Interest expense on lease obligation	3,840	4,631
Project generation	850	-
	427,958	100,464
Net loss and comprehensive loss for the period	$(427,958)	$(100,464)
Net loss and comprehensive loss per share - basic and diluted(note 8)	$(0.00)	$(0.00)
Weighted average number of shares outstanding - basic and diluted (note 8)	120,247,952	110,301,069

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

Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian Dollars)

Unaudited

	Three months Three monthsendedMarch 31,2020		endedMarch 31,2019
Operating activities
Net loss for the period	$(427,958)	$	(100,464)
Adjustments for:
Depreciation	5,351		5,351
Stock-based compensation	41,553		5,315
Stock-based compensation included in exploration and evaluation expenditures	10,176		1,276
Interest expense on lease obligation	3,840		4,631
Changes in non-cash working capital items:
Amounts receivable	(37,712)		14,215
Prepaid expenses	(9,502)		3,746
Accounts payable and accrued liabilities	(98,157)		(73,266)
Net cash used in operating activities	(512,409)		(139,196)
Financing activities
Proceeds from private placement	1,302,000		-
Share issue costs	(81,652)		-
Lease liability payments	(8,125)		(8,125)
Net cash provided by(used in) financing activities	1,212,223		(8,125)
Net change in cash	699,814		(147,321)
Cash, beginning of period	26,016		548,194
Cash, end of period	$725,830	$	400,873

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

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (Expressed in Canadian Dollars) Unaudited

	Share		Co	tributedn
	Cailtap	Wtsarran		Sulurps	Deficit	Tolta
BalaDebe31,2018nce,cemr	$19,342,675	$556,775	$	4,685,297	$$(24,085,710)	499,037
Stok-badtioncsecompensa	-	-		6,591	-	6,591
Nelosfoheiodttsrper	-	-		-	(100,464)	(100,464)
BalaMh31,2019nce,arc	$19,342,675	$556,775	$	4,691,888	$$(24,186,174)	405,164
BalaDebe31,2019nce,cemr	$19,342,675	$151,179	$	5,386,487	$$(24,942,188)	(61,847)
Stok-badtioncsecompensa	-	-		51,729	-	51,729
Privalac(5)tettepemenno	879,711	422,289		-	-	1,302,000
Finde' wts(te5)rsarranno	-	36,000		-	-	36,000
Shaisstsreuecos	(9,493)7	(38,19)5		-	-	(1162)7,5
Netlosfotheiodsrper	-	-		-	(427,958)	(427,958)
BalaMh31,2020nce,arc	$20,142,893	$571,309	$	5,438,216	$$()25,370,146	782,272

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

1. Nature of Operations and Going Concern

Inventus Mining Corp. (the "Company" or "Inventus") was incorporated under the Canada Business Corporations Act and is engaged in the business of locating and exploring mineral properties. Substantially all of the efforts of the Company are devoted to these business activities. The Company commenced trading on the TSX Venture Exchange on May 5, 2015 under the new symbol IVS. To date, the Company has not earned any revenues and is considered to be in the exploration stage. The Company's registered office is located at The Canadian Venture Building, 82 Richmond Street East, Toronto, Ontario, M5C 1P1.

The Company is in the process of exploring its mining claims and has not yet determined whether or not the properties will contain economically recoverable reserves.

These unaudited condensed consolidated interim financial statements were prepared on a going concern basis, which assumes that the Company will continue its operations for the foreseeable future and will be able to continue to realize its assets and discharge its liabilities in the normal course of business. As at March 31, 2020, the Company had working capital of $770,155 (December 31, 2019 - working capital deficit of $73,951), a loss of $427,958 for the three months ended March 31, 2020 (loss of $100,464 for the three months ended March 31, 2019) and a deficit of $25,370,146 (December 31, 2019 - $24,942,188). In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the entity's ability to continue as a going concern.

As is common with exploration companies, the Company is dependent upon obtaining financing to continue its ongoing and planned exploration activities and to cover administrative costs. The Company's ability to continue operations and fund its planned exploration and evaluation expenditures is dependent on management's ability to manage its expenditures and raise funds. The success of these endeavours cannot be predicted at this time. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. The unaudited condensed consolidated interim 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.

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 exploration of such properties, these procedures do not guarantee the Company's title. Property title may be subject to unregistered prior agreements, unregistered claims, aboriginal claims and non-compliance with regulatory and environmental requirements.

2. Significant Accounting Policies

Statement of Compliance

The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by the IASB.

2. Significant Accounting Policies (Continued)

Statement of Compliance (Continued)

The policies applied in these unaudited condensed consolidated interim financial statements are based on IFRSs issued and outstanding as of May 6, 2020, the date the Board of Directors approved the statements. The same accounting policies and methods of computation are followed in these unaudited condensed consolidated interim financial statements as compared with the most recent annual consolidated financial statements as at and for the year ended December 31, 2019, except as noted below. Any subsequent changes to IFRS that are given effect in the Company's annual consolidated financial statements for the year ending December 31, 2020 could result in restatement of these unaudited condensed consolidated interim financial statements.

New accounting policies

IFRS 3, Business combinations

Amendments to IFRS 3, issued in October 2018, provide clarification on the definition of a business. The amendments permit a simplified assessment to determine whether a transaction should be accounted for as a business combination or as an asset acquisition.

The amendments are effective for transactions for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020. Under the new standard the Company expects a more likely probability that future transactions will be accounted for as asset acquisitions.

IAS 1 Presentation of financial statements

Amendments to IAS 1, issued in October 2018, provide clarification on the definition of material and how it should be applied. The amendments also align the definition of material across IFRS and other publications.

The amendments are effective for annual periods beginning on or after January 1, 2020 and are required to be applied prospectively. The adoption of the amendments had no impact on the Company's financial statements.

IAS 8 Accounting policies, changes in accounting estimates and errors

Amendments to IAS 8, issued in October 2018, provide clarification on the definition of material and how it should be applied. The amendments also align the definition of material across IFRS and other publications.

The amendments are effective for annual periods beginning on or after January 1, 2020 and are required to be applied prospectively. The adoption of the amendments had no impact on the Company's financial statements.

3. Right-of-use assets

Balance, January 1, 2020	$64,217
Depreciation	(5,351)
Balance, March 31, 2020	$58,866

Notes to Condensed Consolidated Interim Financial Statements Three Months Ended March 31, 2020 (Expressed in Canadian Dollars) Unaudited

4. Lease obligations

March 31, 2020

Lease obligationsLess current portion	$66,39819,649
Non-current portion	$46,749

Maturity analysis – contractual discounted cash flows

March 31, 2020

Less than one yearOne to three years	$19,64946,749
Total discounted lease obligation	$66,398

5. Share Capital

(a) Authorized share capital

The authorized share capital consists of an unlimited number of common shares.

(b) Common shares issued

The change in issued share capital for the periods presented were as follows:

	Number of
	Shares	Amount
Balance, December 31, 2018	110,301,069	$ 19,342,675
Balance, March 31, 2019	110,301,069	$ 19,342,675
Balance, December 31, 2019	110,301,069	$ 19,342,675
Private placement (i)	12,400,000	879,711
Share issue costs	-	(79,493)
Balance, March 31, 2020	122,701,069	$ 20,142,893

(i) On January 20, 2020, Inventus announced that it has closed a non-brokered private placement of 12,400,000 units of the Company ("Units") at $0.105 per Unit for gross proceeds of $1,302,000 (the "Offering"). Each Unit consists of one common share of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant is exercisable into a Common Share at $0.17 for two years. All securities issued and issuable pursuant to the Offering will be subject to a four-month and one-day statutory hold period.

In connection with the Offering, the Company paid a commission of $51,453 and issued 816,720 finders' warrants with each finders' warrant exercisable into a Unit at $0.105 per Unit for a period of one year. Certain related parties of the Company acquired an aggregate of 4,666,529 Units, for gross proceeds of $489,986. Evanachan Limited, a company which holds more than 10% of the outstanding shares of the Company and owned and controlled by Rob McEwen, acquired 2,381,000 Units. Stefan Spears, Chief Executive Officer ("CEO") of the Company, and Carmelo Marrelli, Chief Financial Officer ("CFO") of the Company, acquired 195,529 and 95,000 Units respectively. Ross Arnold and Richard Gilliam, directors of Endurance Gold Corporation, which holds more than 10% of the outstanding shares of the Company, also each acquired 1,000,000 Units.

5. Share Capital (continued)

(b) Common shares issued (continued)

(i) (continued) A relative value of $422,289 was estimated for the 12,400,000 warrants on the date of grant using a relative fair value method. Inputs in the Black-Scholes option pricing model included: market price on valuation date of $0.105; expected dividend yield of 0%; expected volatility of 113.28% using the historical price history of the Company; risk-free interest rate of 1.65%; and an expected average life of two (2) years.

A value of $36,000 was estimated for the 816,720 finders' warrants on the date of grant.

6. Stock Options

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

	Number ofOptions	WeightedAverageExercise Price
Balance, December 31, 2018	3,627,500	$0.24
Options issued (1)	3,050,000	0.15
Balance, March 31, 2019	6,677,500	$0.20

Balance, December 31, 2019 and March 31, 2020	6,677,500	$0.20

(1) The weighted average fair value of the 3,050,000 options granted in the period was estimated at $0.13 by using the Black-Scholes option pricing model with the following weighted average assumptions:

Share price	$0.15
Risk-free interest rate	1.45%
Dividend yield	0%
Volatility	137.36%
Expected life	5 years

The options vest as to one-third after each of 6, 12 and 18 months from the date of grant.

Option pricing models require the use of highly subjective estimates and assumptions including the expected stock price volatility. Volatility is calculated as the variation of the Company's share price over a look back period equal to the expected life of the option at issuance. Changes in the underlying assumptions can materially affect the fair value estimates.

The Company had the following stock options outstanding as of March 31, 2020:

			Weighted AverageRemaining Contractual
Number of Options	Exercisable	Exercise Price	Life (years)	Expiry Date
677,500	677,500	$0.20	0.15	May 26, 2020
1,425,000	1,425,000	$0.28	1.16	May 30, 2021
1,525,000	1,525,000	$0.21	2.00	March 30, 2022
3,050,000	2,033,333	$0.15	3.99	March 25, 2024
6,677,500	5,660,833		2.54

7. Warrants

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

Balance, December 31, 2018 and March 31, 2019	Number ofWarrants	WeightedAverageExercisePrice
	10,004,466	$	0.25
Balance, December 31, 2019	3,330,000	$	0.25
Warrants issued (note 5)	13,216,720		0.17
Balance, March 31, 2020	16,546,720	$	0.18

The Company had the following warrants outstanding at March 31, 2020:

	Number of Warrants	Exercise Price	Expiry Date
	3,330,000	$0.25	November 2, 2020
(*)	816,720	$0.105	January 17, 2021
	12,400,000	$0.17	January 17, 2022
	16,546,720

(*) 816,720 finders' warrants outstanding with each finders' warrant exercisable into a Unit at $0.105 per Unit for a period of one year.

8. Net Loss per Common Share

The calculation of basic and diluted loss per share for the three months ended March 31, 2020 was based on the loss attributable to common shareholders of $427,958 (three months ended March 31, 2019 - $100,464) and the weighted average number of common shares outstanding of 120,247,952 (three months ended March 31, 2019 - 110,301,069) for basic and diluted loss per share. Diluted loss did not include the effect of warrants and options for the three months ended March 31, 2020 and 2019, as they are anti-dilutive.

9. Exploration and Evaluation Expenditures

		endedMarch 31,2020		Three months Three monthsendedMarch 31,2019
PardoSudbury 2.0 Project	$	51,080255,510	$	57,54174
	$	306,590	$	57,615

For details on the exploration and evaluation expenditures see the attached schedules on pages 12 and 13.

10. Related Party Balances and Transactions

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

The noted transactions below are in the normal course of business.

During the three months ended March 31, 2020, the Company incurred expenses of $18,000 with Stykolt Consulting Inc. ("Stykolt") (three months ended March 31, 2019 - $nil) for management services. Stykolt is a company controlled by Stefan Spears, the Chairman and CEO of the Company. As at March 31, 2020, Stykolt was owed $nil (December 31, 2019 - $12,000) and these amounts were included in accounts payable and accrued liabilities.

Stock-based compensation issued to key management personnel for the three months ended March 31, 2020 was valued at $41,553 (three months ended March 31, 2019 - $5,315). Key management personnel includes the Chairman and CEO, CFO and directors of the Company.

During the three months ended March 31, 2020, the Company paid professional fees and disbursements of $10,222 (three months ended March 31, 2019 - $9,840) to Marrelli Support Services Inc. ("Marrelli Support"), an organization of which Carmelo Marrelli is Managing Director. Carmelo Marrelli is the CFO of the Company. These services were incurred in the normal course of operations for general accounting and financial reporting matters and these amounts are included in professional fees. As at March 31, 2020, Marrelli Support was owed $nil (December 31, 2019 - $nil) and these amounts were included in accounts payable and accrued liabilities.

During the three months ended March 31, 2020, the Company paid professional fees and disbursements of $5,227 (three months ended March 31, 2019 - $3,055) to DSA Corporate Services Inc. ("DSA"), an organization of which Carmelo Marrelli controls. Carmelo Marrelli is also the corporate secretary and sole director of DSA. These services were incurred in the normal course of operation of corporate secretarial matters and these amounts are included in professional fees. As at March 31, 2020, DSA was owed $1,000 (December 31, 2019 - $nil) and these amounts were included in accounts payable and accrued liabilities.

10. Related Party Balances and Transactions (continued)

During the three months ended March 31, 2020, the Company paid professional fees and disbursements of $nil (three months ended March 31, 2019 - $315) to DSA Filing Services Limited ("Filing"), an organization of which Carmelo Marrelli controls. These services were incurred in the normal course of operation of filing matters and these amounts are included in office and general expenses. As at March 31, 2020, Filing was owed $nil (December 31, 2019 - $nil) and these amounts were included in accounts payable and accrued liabilities.

See note 5(b)(i).

11. 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 unaudited condensed interim consolidated financial statements also represent segment amounts.

12. Contingency

COVID-19

Due to the worldwide COVID-19 outbreak, material uncertainties may come into existence that could influence management's going concern assumption. Management cannot accurately predict the future impact COVID-19 may have on:

• Global gold prices;
• Demand for gold and the ability to explore for gold;
• The severity and the length of potential measures taken by governments to manage the spread of the virus, and their effect on labour availability and supply lines;
• Availability of essential supplies, such as water and electricity;
• Purchasing power of the Canadian dollar; or
• Ability to obtain funding.

At the date of the approval of these unaudited condensed consolidated interim financial statements, the Canadian government has not introduced measures which impede the activities of Inventus. Management believes the business will continue and accordingly, the current situation bears no impact on management's going concern assumption. However, it is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of Inventus in future periods.

Schedule of Exploration and Evaluation Expenditures (Expressed in Canadian Dollars) Three Months Ended March 31, 2020 Unaudited

	Sudbu2.0ry
	Prjtoec	Pador	Total
Exlotioditupranexpenres
Drilling	$109,564	$-	$109,564
Gehyicsops	60,118	-	60,118
Wdbefitsagesanne	26,961	26,961	53,922
Lineingtt-cu	34,275	-	34,275
Stok-badtioncsecompensa	5,088	5,088	10,176
Fieldliesdblessuppanconsuma	95,57	1104,	9,689
Anlyisas	3,491	4,272	7,763
Retalsn	4,204	2,434	6,638
Ohetr	4,668	200	4,868
Coltingicensuservs	-	4,000	4,000
Insurance		2,132	2,132
Utilities	-	1,335	1,335
Trl,blesddationaveconsumaanaccommo	1,112	184	1,260
Callabosuaur	-	400	400
Total elotioditufotheiodxpranexpenresrper	$255,510	$51,080	$306,590

Schedule of Exploration and Evaluation Expenditures (Continued) (Expressed in Canadian Dollars) Three Months Ended March 31, 2019 Unaudited

	Sudbu2.0ryPrjtoec	Pador	Total
Exlotioditupranexpenres
fWdbeitsagesanne	$-	$$49,641	49,641
Colingicetnsuservs	-	2,000	2,000
Insurance	-	1,599	1,599
Relstan	-	1,005	1,005
Utilities	-	1,500	1,500
Stok-badtioncsecompensa	-	1,267	1,267
Fieldliesdblessuppanconsuma	74	25	99
foTotal elotioditutheiodxpranexpenresrper	$74	$$57,541	57,615