Juggernaut Exploration Ltd. — Interim / Quarterly Report 2023

Feb 23, 2023

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Unaudited Condensed Interim Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Expressed in Canadian Dollars)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS

In accordance with National Instrument 51-102, Juggernaut Exploration Ltd. discloses that the accompanying unaudited condensed interim financial statements for the three months ended, December 31, 2022, and 2021, were prepared by and are the responsibility of the Company’s management.

The Company’s independent auditor has not performed a review of these condensed interim financial statements.

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Juggernaut Exploration Ltd.

Juggernaut Exploration Ltd.
Condensed Interim Statements of Financial Position
(ExpressedinCanadian Dollars)	(Unaudited)	(Audited)
As at,	December 31,	September 30,
	2022	2022
	$	$
Assets
Current
Cash and cash equivalent (Note 4)	1,549,863	1,945,521
Receivables (Note 5)	70,594	148,555
Prepaid and deposits (Notes 6 and10)	309,987	373,427
	1,930,444	2,467,503
Non-Current
Cash held against credit cards	57,500	57,500
Equipment and vehicles (Note 7)	45,503	48,673
Explorationand evaluationassets (Note 8)	12,971,996	12,747,306
Total assets	15,005,443	15,320,982
Liabilities and Shareholders' Equity
Current
Accounts payable and accrued liabilities (Note 9)	47,661	169,613
Due to related parties (Note 10)	66,904	71,908
Total liabilities	114,565	241,521
Shareholders' Equity
Share capital (Note 11)	25,128,316	25,128,316
Contributed surplus	3,786,530	3,786,530
Accumulated deficit	(14,023,968)	(13,835,385)
Total shareholders' equity	14,890,878	15,079,461
Total liabilities and shareholders' equity	15,005,443	15,320,982

Commitments (Note 8)

Approved on behalf of the Board of Directors on February 23, 2023:

“Daniel Stuart” Director	“Peter Bryant”
	Director

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

Juggernaut Exploration Ltd.

Condensed Interim Statements of Loss and Comprehensive Loss For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

Juggernaut Exploration Ltd. Condensed Interim Statements of Loss and Comprehensive Loss For The Three Months Ended December 31, 2022 and 2021 (Unaudited- ExpressedinCanadian Dollars)
	2022	2021
	$	$
Expenses:
Administration fees (Note 10)	25,000	22,500
Corporate development	33,693	15,144
Depreciation	3,171	3,125
Filing and transfer agent fees	3,650	3,244
Management fees (Note 10)	74,500	72,000
Office and sundry	19,076	21,798
Professional fees	10,000	10,832
Traveland promotion	30,671	2,815
Loss before other items	(199,761)	(151,458)
Other items:
Interest income	11,178	3,287
Reversalof flow-throughpremium liability (Note11)	-	51,347
Net loss and comprehensive loss for theperiod	(188,583)	(96,824)
Basic and dilutedloss pershare	$0.00	$0.00
Weighted averagenumberofshares outstanding	43,447,452	41,185,811

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

Juggernaut Exploration Ltd.

Condensed Interim Statements of Changes in Equity For the Three Months Ended December 31, 2022 and 2021

(Unaudited - Expressed in Canadian Dollars)

Juggernaut Exploration Ltd. Condensed Interim Statements of Changes in Equity For the Three Months Ended December 31, 2022 and 2021 (Unaudited- ExpressedinCanadian Dollars)
	Share Capital Contributed Number of Amount Surplus Deficit Total Shares $ $ $ $
Balance - September 30, 2021 Shares issued pursuant to mineral option agreements (Notes 8 and 11) Mineral property warrants exercised (Note 11) Share-based compensation expense (Note 11) Net and comprehensivelossforthe year	40,430,452 24,584,746 3,768,060 (13,696,828) 14,655,978 3,000,000 540,000 - - 540,000 17,000 3,570 (1,530) - 2,040 - - 20,000 - 20,000 - - - (138,557) (138,557)
Balance - September 30, 2022 Net and comprehensivelossforthe period	43,447,452 25,128,316 3,786,530 (13,835,385) 15,079,461 - - - (188,583) (188,583)
Balance - December 31, 2022	43,447,452 25,128,316 3,786,530(14,023,968) 14,890,878

The accompanying notes are an integral part of these financial statements. - 5 -

Juggernaut Exploration Ltd.

Juggernaut Exploration Ltd.
Condensed Interim Statements of Cash Flows
For The Three Months Ended December 31, 2022 and 2021
(Unaudited- ExpressedinCanadian Dollars)
	2022	2021
	$	$
Operating activities:
Net loss for the period	(188,583)	(97,774)
Adjustments for items not affecting cash:
Depreciation	3,171	3,125
Prepaid amortization	30,394	8,278
Reversal of flow-through premium liability	-	(51,347)
Net change in non-cash working capital items:
GST and accounts receivable	47,042	14,808
Prepaid and deposits	33,046	30,875
Accounts payable and accrued liabilities	16,775	1,507
Due torelated parties	(5,004)	21,000
Cash used inoperating activities	(63,159)	(69,528)
Investing activities
Mineralproperty expenditures	(332,499)	(676,486)
Cash used in investing activities	(332,499)	(676,486)
Financing activities
Proceedsfrom warrants exercised	-	2,040
Cash provided by financing activities	-	2,040
Change in cash and cash equivalent	(395,658)	(743,974)
Cash and cash equivalent -beginning	1,945,521	4,888,397
Cash and cash equivalent - ending	1,549,863	4,144,423
Non-cash investing activity:	$	$
Units issued for options on mineral properties	-	540,000
Exploration expenditure included in accountspayable	5,185	4,579

The accompanying notes are an integral part of these financial statements. - 6 -

Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

1. Corporate Information

Juggernaut Exploration Ltd. (the “Company”) was incorporated under the British Columbia Business Corporations Act on January 6, 2006. The Company is in the business of acquiring, exploring and evaluating mineral resource properties.

The Company’s shares are traded on the TSX Venture Exchange (“TSX-V”) under the symbol “JUGR”.

The address of the Company’s corporate office and principal place of business is Suite 300, 1055 West Hastings Street, Vancouver, BC Canada.

2. Basis of Preparation

Statement of compliance

These unaudited condensed interim financial statements of the Company for the three months ended December 31, 2022, have been prepared using accounting policies consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“ISAB”) and in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting. The significant accounting policies applied in these condensed interim financial statements are based on the IFRS issued and outstanding as of December 31, 2022.

The financial statements were approved and authorized for issue on February 23, 2023 by the directors of the Company.

Basis of Measurement

The financial statements of the Company have been prepared on an accrual basis and are based on historical costs, modified where applicable. The financial statements are presented in Canadian dollars unless otherwise noted.

Going Concern

These financial statements have been prepared assuming the Company will continue on a going-concern basis. As at December 31, 2022, the Company had not yet achieved profitable operations, has an accumulated deficit of $14,023,968 and expects to incur further losses in the development of its business. Further financing will be required to meet the terms of the Company’s option agreements (Note 8). These conditions indicate the existence of material uncertainty which casts significant doubt about the Company’s ability to continue as a going concern. The continuing operations of the Company are dependent upon economic and market factors which involve uncertainties including the Company’s ability to raise adequate equity financing for continuing operations. Realization values may be substantially different from carrying values as shown and 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. If the going concern assumption was not used then the adjustments required to report the Company’s assets and liabilities on a liquidation basis could be material to these financial statements.

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Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

3. Summary of Significant Accounting Policies

Financial Instruments

The following is the Company’s accounting policy for financial instruments under IFRS 9 Financial Instruments:

(i) Classification

The Company classifies its financial instruments in the following categories: at fair value through profit and loss (“FVTPL”), at fair value through other comprehensive income (loss) (“FVTOCI”) or at amortized cost. The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by-instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL.

The following table shows the classification of the Company’s financial instruments under IFRS 9:

Financialassets/liabilities	IFRS 9 Classification
Cash and cash equivalents	Amortized cost
Accounts receivable	Amortized cost
Investment in DSM Syndicate	FVTPL
Accounts payable	Amortized cost
Due to related parties	Amortized cost

(ii) Measurement

Financial assets and liabilities at amortized cost

Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment.

Financial assets and liabilities at FVTPL

Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the statements of loss and comprehensive loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the statements of loss and comprehensive loss in the period in which they arise.

Debt investments at FVTOCI

These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in other comprehensive income (“OCI”). On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss

Equity investments at FVTOCI

These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss.

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Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

3. Summary of Significant Accounting Policies – (cont’d)

Financial Instruments – (cont’d)

(iii) Impairment of financial assets at amortized cost

The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to the twelve month expected credit losses. The Company shall recognize in the statements of loss and comprehensive loss, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized.

(iv) Derecognition

Financial assets

The Company derecognizes financial assets only when the contractual rights to cash flows from the financial assets expire, or when it transfers the financial assets and substantially all of the associated risks and rewards of ownership to another entity.

Financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when the terms of the liability are modified such that the terms and / or cash flows of the modified instrument are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

Gains and losses on derecognition are generally recognized in profit or loss.

Cash and cash equivalents

Cash and cash equivalents consist of deposits in banks and highly liquid investments that are readily convertible to cash.

Equipment

Equipment is stated at historical cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided on the straight-line method over the estimated useful lives of the assets. Upon the sale or disposition of a depreciable asset, cost and accumulated amortization are removed from equipment and any gain or loss is reflected as a gain or loss from operations.

Depreciation is calculated on a diminishing balance basis at a rate of 20% to 30% per annum for all furniture, equipment, automotive and field equipment.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

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Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

3. Summary of Significant Accounting Policies – (cont’d)

Exploration and evaluation assets

Costs incurred prior to obtaining the legal rights to explore a property are recognized as an expense in the period in which they are incurred.

Exploration and evaluation expenditures include the costs of acquiring licenses and costs associated with exploration and evaluation activity. Option payments are considered acquisition costs provided that the Company has the intention of exercising the underlying option.

Property option agreements are exercisable entirely at the option of the optionee. Therefore, option payments (or recoveries) are recorded when payment is made (or received) and are not accrued.

Exploration and evaluation expenditures are capitalized. The Company capitalizes costs to specific blocks of claims or areas of geological interest. Government tax credits received are recorded as a reduction to the cumulative costs incurred and capitalized on the related property.

Exploration and evaluation assets are tested for impairment if facts or circumstances indicate that impairment exists. Examples of such facts and circumstances are as follows:

• the period for which the Company has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed;

• substantive expenditure on further exploration for and evaluation of mineral resources in the specific area is neither budgeted nor planned;

• exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; and

• sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.

After technical feasibility and commercial viability of extracting a mineral resource are demonstrable, the Company stops capitalizing expenditures for the applicable block of claims or geological area of interest and tests the asset for impairment. The capitalized balance, net of any impairment recognized, is then reclassified to either tangible or intangible mine development assets according to the nature of the asset.

Restoration and environmental obligations

The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the exploration development and mining activities, when those obligations result from the acquisition, construction, development or normal operation of the assets. The net present value of future restoration cost estimates is capitalized to the related asset along with a corresponding increase in the restoration provision in the period incurred. Discount rates using a pre-tax rate that reflect the time value of money are used to calculate the net present value.

The Company’s estimates of restoration costs could change as a result of changes in regulatory requirements, discount rates and assumptions regarding the amount and timing of the future expenditures. These changes are recorded directly to the related asset with a corresponding entry to the restoration provision. The Company’s estimates are reviewed annually for changes in regulatory requirements, discount rates, effects of inflation and changes in estimates.

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Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

3. Summary of Significant Accounting Policies – (cont’d)

Restoration and environmental obligations – (cont’d)

Changes in the net present value, excluding changes in the Company’s estimates of restoration costs, are charged to the statement of comprehensive loss for the period.

The net present value of restoration costs arising from subsequent site damage that is incurred on an ongoing basis during production are charged to the statement of comprehensive loss in the period incurred.

The costs of restoration projects that were included in the provision are recorded against the provision as incurred. The costs to prevent and control environmental impacts at specific properties are capitalized in accordance with the Company’s accounting policy for exploration and evaluation assets.

Impairment of assets

The carrying amount of the Company’s assets (which include exploration and evaluation assets) is reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the statement of comprehensive loss.

The recoverable amount of assets is the greater of an asset’s fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

An impairment loss is only reversed if there is an indication that the impairment loss may no longer exist and there has been a change in the estimates used to determine the recoverable amount. Any reversal of impairment cannot increase the carrying value of the asset to an amount higher than the carrying amount that would have been determined had no impairment loss been recognized in previous years.

Assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment.

Share-based Compensation

The Company operates a stock option plan. Share-based compensation to employees is measured at the fair value of the instruments issued and amortized over the vesting periods. Share-based payments to nonemployees is measured at the fair value of 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 corresponding amount is recorded to the option reserve. The fair value of options is determined using a Black–Scholes Option Pricing Model. The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest.

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Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

3. Summary of Significant Accounting Policies – (cont’d)

Loss per share

Basic loss per share is calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding in the period. For all periods presented, the loss attributable to common shareholders equals the reported loss attributable to owners of the Company. Diluted loss per share is calculated by the treasury stock method. Under the treasury stock method, the weighted average number of common shares outstanding for the calculation of diluted loss per share assumes that the proceeds to be received on the exercise of dilutive share options and warrants are used to repurchase common shares at the average market price during the period. Under this method, the basic and diluted loss per share is the same as the effect of common shares issuable upon the exercise of options and warrants would be anti-dilutive.

Flow-through shares

The Company has adopted a policy whereby proceeds from flow-through issuance are allocated between the offering of shares and the sale of tax benefits based on the premium that the investor pays for the shares. A liability is recognized for this difference and is extinguished by crediting other income when the Company has made the required expenditures and there is a reasonable expectation of the renunciation of these expenditures to the tax authorities.

Significant estimates and assumptions

The preparation of financial statements in accordance with IFRS requires the Company to make estimates and assumptions concerning the future. The Company’s management reviews these estimates and underlying assumptions on an ongoing basis, based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are adjusted for prospectively in the period in which the estimates are revised.

Estimates and assumptions where there is significant risk of material adjustments to assets and liabilities in future accounting periods include the useful lives of equipment, the recoverability of the carrying value of exploration and evaluation assets, fair value measurements for financial instruments, the calculation of share based compensation using the Black Scholes Option Pricing Model and the recoverability and measurement of deferred tax assets.

Significant judgments

The preparation of financial statements in accordance with IFRS requires the Company to make judgments, apart from those involving estimates, in applying accounting policies. The most significant judgments in applying the Company’s financial statements include:

• The assessment of the Company’s ability to continue as a going concern and whether there are events or conditions that may give rise to significant uncertainty;

• the classification / allocation of expenditures as exploration and evaluation expenditures or operating expenses; and

• the classification of financial instruments.

Income taxes

Current income tax:

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date, in the countries where the Company operates and generates taxable income.

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Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

3. Summary of Significant Accounting Policies – (cont’d)

Income taxes – (cont’d)

Current income tax – (cont’d)

Current income tax relating to items recognized directly in other comprehensive income or equity is recognized in other comprehensive income or equity and not in profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred income tax:

Deferred income tax is recognized, using the asset and liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes

The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and recognized only to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.

Leases

At the inception of a contract, the Company assesses whether a contract is or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right- of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle or remove the underlying asset.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate.

The Company has elected to not recognize right-of-use assets and lease liabilities for short-term lease of assets that have a lease term of 12 months or less and leases of low-value assets, such as IT equipment. The Company recognizes the lease payments associated with the leases as an expense on a straight-line basis over the lease term.

Accounting pronouncements not yet adopted

Accounting pronouncements with future effective dates are not expected to have a significant impact on the Company’s financial statements.

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Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

4. Cash and cash equivalents

	December 31,	December 31,
	2022	2021
Cash	$ 1,711	$ 8,559
Short-term investment	1,548,152	4,135,864
	$1,549,863	$4,144,423

5. Receivables

Receivables
	December 31,	December 31,
	2022	2021
Amounts receivable	$ 18,287	$ 2,409
Sales tax receivable	21,388	16,797
BCMETCrecoverable (note 8)	30,919	38,260
	$70,594	$ 57,466

6. Prepaid and deposits

Prepaid and deposits
	December 31,	December 31,
	2022	2021
Prepaid expenses	$ 46,099	$ 32,878
Deposits	263,888	91,188
	$309,987	$124,066

7. Equipment

				Field/Geo
		Equipment	Automotive	Equipment	**Total **
Cost:
At September 30, 2021	$	4,543 $	27,672 $	22,250 $	54,465
Disposals			-	-	0
Additions		1,414	6,720	9,245	17,379
At September 30, 2022	$	5,957 $	34,392 $	31,495 $	71,844
Additions/(disposals)		-	-	-	0
AtDecember31,2022	$	5,957$	34,392$	31,495 $	71,844
Depreciation:
At September 30, 2021	$	1,666 $	4,151 $	2,781	8,598
Disposals			-	-	0
Chargeforthe year		717	8,064	5,792	14,573
At September 30, 2022	$	2,383 $	12,215 $	8,573 $	23,171
Chargeforthe period		179	1,663	1,328	3,170
AtDecember31,2022	$	2,562$	13,878 $	9,901$	26,341
Net book value:
At September30,2022	$	3,574$	22,177$	22,922$	48,673
At December 31,2022	$	3,395$	20,514$	21,594$	45,503

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Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

8. Exploration and Evaluation Assets

Empire and Midas Properties:

On March 15, 2017, the Company entered into two separate letter agreements (the “Agreements”) with J2 Syndicate Holdings Ltd. (the “J2 Syndicate”) and its members (the “Optionors”) providing the Company with the right to acquire a 100% interest in the Midas property situated in the Skeena Mining Division of British Columbia and the Empire property situated in the Omineca Mining Division of British Columbia (the “Options”).

Empire

Financial terms/commitments are as follows (as amended on April 30, 2018, October 30, 2018 and September 25, 2020):

					Exploration
Date	Cash $	Securities		Date	Expenditures $
Effective Date	300,000_paid_	820,000 shares	Issued	Dec. 31, 2017	450,000	incurred
		820,000 warrants	Issued
Feb. 1, 2019	300,000_paid_	N/A		Dec. 31, 2018	500,000	incurred
Mar. 30, 2020	N/A	410,000 shares	Issued	Dec. 31, 2019	1,200,000_(a)_	incurred
Oct. 16, 2020	N/A	1,700,000 shares	Issued	Dec. 15, 2022	500,000_(b)_	incurred
		1,700,000 warrants	Issued
Dec. 15, 2027	N/A	4,100,000 shares		Dec. 15, 2027	Feasibility Report–	Note 1
Total	600,000	7,030,000 shares
		2,520,000 warrants

(a) $1,200,000 to be incurred in aggregate on the Empire and/or Midas properties. (b) $500,000 to be incurred in aggregate on the Empire and/or Midas properties.

Note 1: If Juggernaut has a Feasibility Report prepared, and such a Feasibility Report, including a National Instrument 43-101 compliant resource estimate (herein referred to as a “Resource Report”), must be delivered to the Optionors by December 15, 2027 to maintain and exercise the Option; provided that Juggernaut may elect by written notice delivered to the Optionors not later than December 15, 2027 to either (a) extend the time for delivery of a Feasibility Report to the Optionors to December 15, 2028 and, as consideration for such extension, to pay to the Optionors an amount equal to US$1.00 for each equivalent ounce of gold up to 2,000,000 equivalent ounces of gold based on each Resource Report produced prior to or as part of such Feasibility Report (in addition to paying the resource bonuses as described below); or (b) extend the date by which it must elect to deliver a Feasibility Study for an unlimited number of successive one year periods (i.e. to December 15, 2028 and December 15 of each year thereafter) (each such one year period, an “Extension Term”), in each case by paying to the Optionors (i) US$1,000,000 in respect of each of the first five Extension Terms, (ii) US$2,000,000 in respect of each of the sixth through the tenth Extension Terms, and (iii) US$3,000,000 in respect of each succeeding Extension Term, in each case prior to first day of such Extension Term. If Juggernaut fails to comply with the terms of such extension, the Option may be terminated by the Optionors and in such event Juggernaut shall be obligated to pay $1,000,000 to the Optionors as a genuine pre-estimate of liquidated damages suffered by the Optionors.”

As at September 30, 2019, the Company was uncertain whether it would proceed with the Empire property and determined that this was an indicator of impairment and therefore wrote-off the carrying value of the property. On September 25, 2020 the Company negotiated revised terms with the optionor and intends to incur further exploration and evaluation expenditures on this property.

Midas

Financial terms/commitments are as follows (as amended on April 30, 2018 and October 30, 2018, November 8, 2019 and October 30, 2020):

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Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

8. Exploration and Evaluation Assets – (cont’d)

Midas – (cont’d)

Midas– (cont’d)
					Exploration
Date	Cash $	Securities		Date	Expenditures $
Effective Date	300,000_paid_	820,000 shares	Issued	Dec. 31, 2017	350,000_incurred_
		820,000 warrants	Issued
Feb. 1, 2019	300,000_paid_	N/A		Dec. 31, 2018	500,000_incurred_
Mar. 30, 2020	N/A	410,000 shares	issued	Dec. 31, 2019	1,200,000_(a) _incurred
				Sept. 20, 2020	90,000_incurred_
Nov. 10, 2020	N/A	1,700,000 shares	Issued	Dec. 15, 2022	500,000_(b) _incurred
		1,700,000 warrants	Issued
					Feasibility Report
Mar. 30, 2027	N/A	4,100,000 shares		Dec. 31, 2029	–note 1
Total	600,000	7,030,000 shares
		2,520,000 warrants

(a) $1,200,000 to be incurred in aggregate on the Empire and/or Midas properties.

(b) $500,000 to be incurred in aggregate on the Empire and/or Midas properties.

Note 1: If Juggernaut completes a Feasibility Report , the preparation of a Feasibility Report including a National Instrument 43-101 compliant resource estimate (herein referred to as a “Resource Report”), must be delivered to the Optionors by December 31, 2029 to maintain and exercise the Option; provided that Juggernaut may elect by written notice delivered to the Optionors not later than December 31, 2029 to either (a) extend the time for delivery of a Feasibility Report to the Optionors to December 31, 2030 and, as consideration for such extension, to pay to the Optionors an amount equal to US$1.00 for each equivalent ounce of gold up to 2,000,000 equivalent ounces of gold based on each Resource Report produced prior to or as part of such Feasibility Report (in addition to paying the resource bonuses provided for above); or (b) extend the date by which it must elect to deliver a Feasibility Study for an unlimited number of successive one year periods (i.e. to Dec 31, 2030 and March 30 of each year thereafter) (each such one year period, an “Extension Term”), in each case by paying to the Optionors (i) US$1,000,000 in respect of each of the first five Extension Terms, (ii) US$2,000,000 in respect of each of the sixth through the tenth Extension Terms, and (iii) US$3,000,000 in respect of each succeeding Extension Term, in each case prior to first day of such Extension Term. If Juggernaut fails to comply with the terms of such extension, the Option may be terminated by the Optionors and in such event Juggernaut shall be obligated to pay $1,000,000 to the Optionors as a genuine pre-estimate of liquidated damages suffered by the Optionors.”

Pursuant to each of the Options the Company is required to pay the Optionors a resource bonus of US$1,000,000 and 1,000,000 (post-consolidation) shares when a NI 43-101 Compliant Technical Report of mineral reserves and mineral resources collectively meet 2,000,000 equivalent ounces of gold on the respective properties and thereafter the Company is required to pay US$1 per additional equivalent ounce of gold based on subsequent NI 43-101 Compliant Technical Reports.

A 3% royalty (“Royalty”) on net smelter returns (“NSR”) from all production from each property acquired by the Company will be payable in cash or in kind at the option of the Optionors, with a right of the Company until May 1,2021 to buy down the Royalty by 1% to 2% for the payment to the Optionors of US$2,000,000. If the price of gold increases to US$2,000 per ounce, the Royalty will increase to 4% if it has not previously been bought down to 2% and it will increase to 3% if it has previously been bought down. If the Royalty is at 4% of the Company may reduce it to 2% by the payment of US$4,000,000 to the Optionors by the date which is the later of the 7th anniversary of the Definitive Agreement or six months after the price of gold reaches the US$2,000 threshold. If the Royalty is at 4% the Company may reduce it to 3% by the payment of US$2,500,000 to the Optionors by the date which is the later of the 7th anniversary of the Definitive Agreement or six months after the price of gold reaches a price of US$2,000.

Warrants issued under the option agreements entitled each warrant held by the holder to acquire one additional share of the Company at the price of $0.08 per share for 60 months from closing. All warrants will be subject to provisions prohibiting exercise if, as a result, the holder would own 10% or more of the Company’s outstanding shares post-exercise.

• 16 -

Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

8. Exploration and Evaluation Assets – (cont’d)

Gold Standard Property

In November, 2019, the Company entered into an agreement with the DSM Syndicate Holdings Ltd. (“DSM”) to earn a 100% in the Gold Standard property containing 3,961 hectares located in West Central BC.

Financial terms/commitments are as follows (as amended on March 11, 2020 and December 14, 2021):

				Exploration	Interest
Date	Cash $	Securities		Expenditures $	Earned
Effective Date	200,000_paid_	2,000,000 shares	issued
		2,000,000 warrants	issued
Dec. 15, 2021	300,000_paid_	3,000,000 shares	issued	500,000	-	incurred
Dec. 15, 2023	500,000	2,000,000 shares		2,000,000 *60%
Dec. 15, 2024	600,000	3,000,000 shares		2,500,000	100% Subject to NSR
Total	1,600,000	10,000,000 shares		5,000,000
		2,000,000warrants

• ∗ The $2,000,000 in exploration expenditures to be incurred by December 15, 2023 will be spent in aggregate between the Gold Standard property and the Gold Star property.

In the event that the Company earns a 60% interest in the Property, but subsequently fails or determines not to acquire the remaining 40% interest, the 60% interest it previously earned will be forfeited and the Company will revert back to the original 20% interest it had on the Property as a result of being a member of the Syndicate.

All cash, NSR royalty payments and shares and warrants issuable hereunder shall be allocated and issued or paid to the members of DSM excluding the Company which is a member of the DSM. The December 15, 2021 cash Option payment and all cash Option payments made thereafter will, subject to exercise of the Option, be deemed to be Advance Royalties. An Advance Royalty of $100,000 per year will be payable on December 15 of each year after exercise of the Option until the first royalty payment after commencement of commercial production.

A 3% royalty (“Royalty”) on net smelter returns (“NSR”) from all production from the property acquired by the Company will be payable in cash, with a right of the Company until December 15, 2024 to buy down the Royalty by 1% for the payment to the optionors (excluding the Company) of US$2,000,000. Production from the property includes all minerals (as defined in the Mineral Tenure Act [B.C.]) and other marketable materials, in whatever form or state, produced from the property and includes, without limitation, gold, silver, platinum, platinum group elements and other precious metals, copper, lead and zinc and other base metals, and sand, gravel, graphite, barite and other industrial minerals and materials. The Royalty will be registered in the office of the Gold Commissioner for B.C. and a security interest in the mineral claims and any afteracquired mineral lease will be registered in the B.C. Personal Property Security Register. If and when NI 43101 mineral reserves (proven and probable categories) and mineral resources (measured, indicated and inferred categories) on the Property collectively meet 2,000,000 equivalent ounces of gold with a minimum cut off grade of 0.05 grams per ton gold the Company will pay to DSM US$1 per equivalent ounce of gold based on each Resource Report produced (the “Resource Bonus”) including subsequent Resource Reports that report on additional equivalent ounces of gold as further exploration and development takes place. The resource bonus is to be applied as an advanced royalty payment.

• 17 -

Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

8. Exploration and Evaluation Assets – (cont’d)

Gold Star Property

In July, 2020, the Company entered into an agreement with the DSM to earn a 100% in the Gold Star property (“Property”) containing 238 hectares located in West Central BC in close proximity to the Gold Standard property.

Financial terms/commitments are as follows (as amended December 14, 2021):

				Exploration	Interest
Date	Cash $	Securities		Expenditures $	Earned
Mar. 9, 2021	N/A	1,500,000 shares	issued
		1,500,000 warrants	issued
Dec. 15, 2022	N/A	N/A		250,000	- incurred
Dec. 15, 2023	250,000	1,500,000 shares		2,000,000 *40%
Dec. 15, 2024	500,000	2,000,000 shares		2,000,000	100% Subject to NSR
Total	750,000	5,000,000 shares		4,250,000
		1,500,000warrants

∗ The $2,000,000 in exploration expenditures to be incurred by December 15, 2023 will be spent in aggregate between the Gold Standard property and the Gold Star property.

In the event that the Company earns an initial 40% interest in the Property, but subsequently determines not to pursue the Option to acquire the remaining 60% interest the Company will forfeit the additional 20% it would otherwise have earned and its interest will revert back to the original 20% interest it had as a result of being a member of the Syndicate and (i) the Optionors shall have the right to make all decisions respecting the Property, including any decision to sell, lease or otherwise dispose of or develop the Property; (ii) the Company shall be irrevocably bound by such decisions and hereby appoints the Manager as the Company’s lawful agent and attorney for that purpose; and (iii) neither the Company nor any Optionor shall be obligated to incur any expense in respect of the Property. The net proceeds from any such disposition transaction shall be shared between the Optionors and the Company in accordance with their respective percentage interests in the Property.

All cash, NSR royalty payments and shares and warrants issuable hereunder shall be allocated and issued or paid to the members of the Syndicate excluding the Company which is a member of the Syndicate.

A 3% royalty (“Royalty”) on net smelter returns (“NSR”) from all production from the Property acquired by the Company will be payable in cash, with a right of the Company until December 15, 2024 to buy down the Royalty by 1% for the payment to the Optionors (excluding the Company) of US$2,000,000. Production from the Property includes all minerals and other marketable materials, in whatever form or state, produced from the Property and includes, without limitation, gold, silver, platinum, platinum group elements and other precious metals, copper, lead and zinc and other base metals, and sand, gravel, graphite, barite and other industrial minerals and materials.

If and when NI 43-101 mineral reserves (proven and probable categories) and mineral resources (measured, indicated and inferred categories) report (a “Resource Report”) on the Property collectively meet 2,000,000 equivalent ounces of gold with a minimum cut off grade of 0.05 grams per ton gold the Company will pay to the Syndicate US$1 per equivalent ounce of gold based on each Resource Report produced (the “Resource Bonus”) including subsequent Resource Reports that report on additional equivalent ounces of gold as further exploration and development takes place. The Resource Bonus is to be applied as an advanced royalty payment.

• 18 -

Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

8. Exploration and Evaluation Assets – (cont’d)

Bingo Property

In December, 2021, the Company entered into an option agreement with the J2 Syndicate (“J2”) for an option to earn up to a 100% right, title and interest in and to certain mineral claims situated in the Skeena Mining District in British Columbia, collectively known as the Bingo Property.

Financial terms/commitments are as follows:

					Exploration	Interest
Date		Cash $	Securities	Date	Expenditures $	Earned
	-	-	-	Dec. 15, 2022	190,000(i)	-
Dec.	31, 2023	500,000 *	3,000,000 shares **	Dec. 31, 2023	700,000	49%
			3,000,000 warrants **
	-	-	-	Dec. 15, 2027	10,000,000100% Subject to NSR
Total		500,000	3,000,000 shares		10,890,000
			3,000,000 warrants

• The December 31, 2023 cash option payment, subject to exercise of the option, be deemed to be advance royalties.

• ** The units to be issued to the Syndicate consisting of shares and warrants will be issued at a deemed price equal to the maximum discount to market allowable by the TSXV Exchange of Juggernaut’s shares and for tax purposes $0.0001 of the deemed issue price of each unit will be allocated to the warrant comprised in the unit. Each warrant will be exercisable for five years after its date of issuance to purchase an additional share of the Company at a price that is equal to the market price as defined by the policies of the TSXV. All warrants will be subject to provisions prohibiting exercise if, as a result the holder would hold 10% or more of the Issuer’s outstanding shares post-exercise.

• (i) As at December 15, 2022, the company incurred exploration expenditures of $166,457. To maintain the Bingo agreement in good standing the Company paid the shortfall of $23,543 in cash to J2 in January, 2023.

If the Company earns a 49% interest in Bingo but fails or decides not to proceed further, then a new agreement will be entered into with the Optioners with the purpose of marketing to sell or option the Bingo property to any prospective interested party.

The Company will pay a resource bonuses to the Optioners in cash and shares when a NI 43-101 mineral reserves (proven and probable categories) and mineral resources (measured, indicated and inferred categories) on the Bingo Property collectively meet the following equivalents of ounces of gold:

GoldEquivalent Ounces (“GEO”)	Cash	Shares
Foreach 2,000,000 GEO	US$1,000,000	N/A
Over 2,000,000 GEO	See (a)	N/A
First2,000,000 GEO		10,000,000

(a) Juggernaut will pay an additional resource bonus of US$1.00 to the Optionors for every gold equivalent ounce over 2,000,000 gold equivalent ounces.

A royalty of 3% of NSR and other returns from all production from the Bingo Property will be payable to the Optionors, in cash or in kind (i.e. gold and other Minerals produced from the Property) at the option of the Optionors (which will be exercisable by the Manager on behalf of the Optionors). The Company will have the right and option to reduce the royalty on the Company’s then current interest in the Property from 3% to 2% by paying US$1,500,000 to the Optionors not later than December 15, 2026. Production from the Bingo Property will include all minerals and other marketable materials, in whatever form or state, produced from the Bingo Property and “other returns” includes, without limitation, gross proceeds from the sale of sand, gravel, graphite, barite and other industrial minerals and materials. The royalty will be registered in the office of the Gold Commissioner for B.C. and a security interest in the mineral claims and any after-acquired mineral lease will be registered in the B.C. Personal Property Security Register or against title to the Property to the extent applicable.

• 19 -

Juggernaut Exploration Ltd. Notes to the Financial Statements For The Years Ended September 30, 2022 and 2021 (Expressed in Canadian Dollar)

8. Exploration and Evaluation Assets – (cont’d)

The Company’s exploration and evaluation assets are as follows:

Balance Mineral Sept. 30, 2021 Properties: $	ExpendituresDuring theYear Camp & Consulting/ Transport & Equipment Government Balance Acquisitions Assays Field Costs Reports Drilling Supplies Geophysical & Rental Tax Credit Sub-total Sept. 30, 2022 $ $ $ $ $ $ $ $ $ (a) $ $
Empire 475,449 Midas 6,016,922 Goldstd 1,798,800 Goldstar 1,912,014 Bingo -	- 1,910 6,000 23,275 - 453 - 2,685 (4,675) 29,648 505,097 - 27,743 41,012 27,660 - 35,588 19,500 2,685 (13,597) 140,591 6,157,513 840,000 57,046 75,554 122,239 335,497 285,668 - 13,117 1,030 1,730,151 3,528,951 - 11,773 35,193 116,640 198,722 163,055 - 12,140 874 538,397 2,450,411 - 54,307 33,713 13,660 - 11,383 - - (7,729) 105,334 105,334
Total 10,203,185	840,000 152,779 191,472 303,474 534,219 496,147 19,500 30,627 (24,097) 2,544,121 12,747,306
Balance Mineral Sept. 30, 2022 Properties: $	ExpendituresDuring thePeriod Government Camp & Consulting/ Transport & Equipment Tax Credit Balance Acquisitions Assays Field Costs Reports Drilling Supplies Geophysical & Rental Adjustment Sub-total Dec. 31, 2022 $ $ $ $ $ $ $ $ $ $ $
Empire 505,097 Midas 6,157,513 Goldstd 3,528,951 Goldstar 2,450,411 Bingo 105,334	- - 1,500 7,020 - 218 - 251 - 8,989 514,086 - 16,368 6,436 26,872 - 12,314 22,146 251 - 84,387 6,241,900 - 66,075 - 9,960 - 159 - 401 - 76,595 3,605,546 - 2,024 - 14,210 - 160 - 431 - 16,825 2,467,236 - 2,816 - 22,650 - 12,227 - 201 - 37,894 143,228
Total 12,747,306	- 87,283 7,936 80,712 - 25,078 - 1,535 - 224,690 12,971,996

(a) During fiscal 2022, the CRA approved $31,439 of the Company’s 2021 BCMETC claim of $38,260. The difference of $6,821was split $1,200, $3717, $1030 and $874 and adjusted to the Empire, Midas, GoldStandard and GoldStar properties respectively as an addition to their exploration expenditures.

As at September 30, 2022, BCMETC of $30,919 pertaining to fiscal 2022 was accrued as a receivable and the tax credit of $5,875, $17,315 and $7,729 relating to the Empire, Midas and Bingo properties respectively were included as an offset to their exploration expenditures.

• 20 -

Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

9. Accounts payable and accrued liabilities

Accounts payable and accrued liabilities
	December 31,	December 31,
	2022	2021
Accounts payable	$ 14,461	$ 14,517
Accruedliabilities	33,200	29,000
	$47,661	$43,517

10. Related Party Transactions

Related Party Transactions
		December 31,		December 31,
		2022		2021
Management fees	$	70,000	$	67,500
Administrative fees		25,000		22,550
Director fees		4,500		4,500
Short-term benefits		1,808		1,252
Other		3,000		3,000
Total	$	104,308	$	98,752

Key management personnel are persons responsible for the planning, directing and controlling activities of the entity. The Company’s key management personnel are the CEO and CFO and their compensations are included in the following:

Home office expenses of $3,000 (2021: $3,000) were paid or accrued to the CEO and CFO.

Related party liabilities consist of unpaid management, administration and other fees owing to two officers of the Company. These amounts are unsecured, non-interest bearing and have no fixed terms of repayment.

As at December 31, 2022, $66,904 (2021 - $63,000) was owing to related parties and a balance in prepaid expenses of $nil (2021 - $17,989) was due from related parties relating to expense advances.

11. Share Capital

Authorized:

Authorized share capital consists of an unlimited number of common shares without par value.

Issued:

As at December 31, 2022, there were 43,447,452 (2021: 43,447,452) shares issued and outstanding.

During the period ended December 31, 2022, no common shares were issued from the Company’s treasury.

During the year ended September 30, 2022:

• In December, 2021, the Company issued 17,000 common shares pursuant to the exercise of 17,000 share purchase warrants at a unit exercise price of $0.12 for gross proceeds of $2,040.

• In December, 2021, the Company issued 3,000,000 common shares to members of DSM pursuant to the terms of the Gold Standard agreement.

• 21 -

Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

11. Share Capital – (cont’d)

Share Purchase Warrants Outstanding:

The continuity of share purchase warrants is as follows:

The continuity of share purchase warrants is as follows:
	Number of		Weighted Average
	Warrants		Exercise Price
Balance - September 30, 2021	31,040,000		$0.40
Warrants exercised	(17,000)	(i)	$0.12
Expired	(5,930,376)		$0.67
Balance - September 30,2022 and December 31,2022	25,092,624		$0.34

(i) The share price on the date the warrants were exercised was $0.18

Details of share purchase warrants outstanding at December 31, 2022:

Number of Warrants	Exercise Price	Expiry Date	Remaining Life (Years)
18,421,624	$0.38	March 3, 2023	0.18
1,975,000	$0.20	March 10, 2025	2.19
1,649,000	$0.14	October 16, 2025	2.79
1,547,000	$0.12	November 12, 2025	2.87
1,500,000	$0.42	March9,2026	3.19
25,092,624	$0.34		0.86

Stock options:

The Company has a stock option plan whereby, the aggregate number of shares which may be issued pursuant to options granted under the Plan, unless otherwise approved by shareholders, may not exceed that number, which is equal to 20% of the shares of the Company issued and outstanding on the record date of November 12, 2021, being 8,086,090. The maximum number of common shares reserved for issue to any one person under the plan cannot exceed 5% of the issued and outstanding number of common shares at the date of the grant and the maximum number of common shares reserved for issue to a consultant or a person engaged in investor relations activities cannot exceed 2% of the issued and outstanding number of common shares at the date of the grant. Options vest at the date of grant, unless otherwise noted.

The exercise price of each option granted under the plan may not be less than the Discounted Market Price (as that term is defined in the policies of the TSXV). Options may be granted for a maximum term of five years from the date of the grant, are non-transferable and expire within 90 days (or earlier as stipulated) of termination of employment or holding office as director or officer of the Company and, in the case of death, expire within one year thereafter. Upon death, the options may be exercised by legal representation or designated beneficiaries of the holder of the option.

The continuity of share purchase options is as follows:

		Number of	Weighted Average
		Options	ExercisePrice
Balance -	September 30, 2021	4,020,500	$0.30
Granted		200,000	$0.22
Balance -	September 30,2022 and December 31,2022	4,220,500	$0.30

• 22 -

Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

11. Share Capital – (cont’d)

Options: - (cont’d)

During the year ended September 30, 2022, management granted 200,000 stock options to a consultant for the Company. The options issued pursuant to this grant vest immediately, have a term of five years with each option exercisable to purchase a common share of the Company at $0.22. The granting of these options resulted in the recognition of $20,000 (2021: $692,670) in share-based compensation using the BlackScholes Option Pricing Model.

Details of stock options outstanding at December 31, 2022:

Options Outstanding	ExercisePrice	ExpiryDate	RemainingLife (years)
1,000,000	$0.22	January 9, 2025	2.27
350,000	$0.22	April 21, 2025	2.56
335,000	$0.22	December 2, 2025	3.17
10,500	$0.22	December 30, 2025	3.25
2,325,000	$0.36	May 14, 2026	3.63
200,000	$0.22	March8,2027	4.44
4,220,500	$0.30		3.22

The fair values were estimated using the Black-Scholes option pricing model:

Date	Number of	Exercise	Expiry	Unit Fair
Granted	Options	Price	Date	Value
January 9, 2020	1,000,000	$0.22	January 9, 2025	$0.17
April 21, 2020	350,000	$0.22	April 21, 2025	$0.14
December 2, 2020	335,000	$0.22	December 2, 2025	$0.12
December 30, 2020	10,500	$0.22	December 30, 2025	$0.14
May 14, 2021	2,325,000	$0.36	May 14, 2026	$0.28
March8,2022	200,000	$0.22	March8,2027	$0.10

Black-Scholes option pricing parameters with no dividend yield expected:

Risk-Free Interest Rate	Expected Life(Years)	VolatilityFactor
0.29% - 1.61%	5	104.8% - 111.7%

Contributed Surplus:

Contributed surplus record items recognized as stock-based compensation expense and other share-based payments until such time that the stock options or warrants are exercised, at which time the corresponding amount will be transferred to share capital. If the options or warrants expire unexercised, the amount initially recorded will be reversed to deficit.

12. Management of Capital

The Company's policy is to maintain a strong capital base so as to maintain investor and creditor confidence, safeguard the Company’s ability to support the exploration and development of its exploration and evaluation assets and to sustain future development of the business. The capital structure of the Company consists of equity and debt obligations, net of cash. There are no restrictions on the Company’s capital and there were no changes in the Company's approach to capital management during the year.

• 23 -

Juggernaut Exploration Ltd. Notes to the Financial Statements For The Three Months Ended December 31, 2022 and 2021 (Unaudited - Expressed in Canadian Dollars)

13. Financial Instruments and Risk Management

The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors approves and monitors the risk management processes, inclusive of documented investment policies, counterparty limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows:

Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur financial loss. The Company is exposed to credit risk with respect to its cash and shortterm investment. The Company minimizes its exposure to credit risk by placing its cash and cash equivalents with a Canadian Chartered bank. While there is concentration of risk by holding all funds with one institution, management assesses credit risk of cash and cash equivalents as low due to the high credit quality rating the institution has with the rating agencies. As at December 31, 2022, the Company has cash and cash equivalents of $1,549,863.

Foreign exchange risk

Foreign currency risk is the risk that the fair values of future cash flows of a financial instrument will fluctuate because they are denominated in currencies that differ from the respective functional currency. The Company’s exposure to foreign exchange risk is minimal.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis. Liquidity risk is considered high.

Fair value

The fair value of the Company’s financial assets and liabilities approximates their carrying amount due to their short period of time to maturity.

Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are:

• Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;

• Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

• Level 3 – Inputs that are not based on observable market data.

Management has determined that the cost of its investment in the DSM Syndicate of $nil is the most reliable measure of its fair value as there is a lack of observable date or other means to determine fair value and is a level 3 fair value measure.

14. Income Tax

The Company has non-capital losses of $5,162,016 which may be carried forward to reduce taxable income in future years. The non-capital losses expire between 2028 and 2042 and resource exploration and development pools of $9,944,433 which may be carried forward indefinitely.

• 24 -