New Target Mining Corp. — Annual Report 2023

Feb 2, 2024

NEW TARGET MINING CORP .

FINANCIAL STATEMENTS

FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

Expressed in Canadian Dollars

Head Office Address

250 – 750 West Pender Street Vancouver, BC, V6C 2T7 Canada

Registered and Records Office Address

250 – 750 West Pender Street Vancouver, BC, V6C 2T7 Canada

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Crowe MacKay LLP

1100 - 1177 West Hastings Street Vancouver, BC V6E 4T5 Main +1 (604) 687-4511 Fax +1 (604) 687-5805 www.crowemackay.ca

Independent Auditor's Report

To the Shareholders of New Target Mining Corp.

Opinion

We have audited the financial statements of New Target Mining Corp. (the "Company"), which comprise the statements of financial position as at October 31, 2023 and October 31, 2022 and the statements of loss and comprehensive loss, changes in shareholders' equity (deficiency) and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at October 31, 2023 and October 31, 2022, and its financial performance and its cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board.

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 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 financial statements in Canada, and 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 to the financial statements which describes the material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Other than the matter described in the Material Uncertainty Related to Going Concern section, we have determined there are no key audit matters to be communicated in our report.

Other Information

Management is responsible for the other information. The other information comprises:

• Management's Discussion and Analysis

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

financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We obtained the other information prior to the date of this auditor's report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in this auditor's report. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

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

In preparing the 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 to 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 Financial Statements

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

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

• Identify and assess the risks of material misstatement of the 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 risk 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 are required to draw attention in our auditor's report to the related disclosures in the 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 financial statements, including the

disclosures, and whether the 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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Diana Huang.

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Chartered Professional Accountants Vancouver, Canada February 1, 2024

NEW TARGET MINING CORP . STATEMENTS OF FINANCIAL POSITION Expressed in Canadian Dollars AS AT OCTOBER 31,

	2023 2022
ASSETS Current assets Cash Receivable Prepaid expense Total current assets Non-current assets Exploration and evaluation assets (Note 3) Total assets	$ 107,007 $ 185,191 3,139 3,906 4,350 5,900
	114,496 194,997 - 280,708
	$ 114,496 $ 475,705
LIABILITIES AND EQUITY (DEFICIENCY) Current liabilities Accounts payable and accrued liabilities (Note 5) Equity (deficiency) Capital stock (Note 4) Share-based payment reserve (Note 4) Deficit Total equity (deficiency) Total liabilities and equity (deficiency)	$ 173,814 $ 96,008
	765,209 765,209 25,600 25,600 (850,127) (411,112)
	(59,318) 379,697
	$ 114,496 $ 475,705
Nature and continuance of operations(Note 1) On behalf of the Board:

“Todd Hanas” Director “Adrian Lamoureux” Director

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

NEW TARGET MINING CORP . STATEMENTS OF LOSS AND COMPREHENSIVE LOSS Expressed in Canadian Dollars YEARS ENDED OCTOBER 31,

	2023 2022
EXPENSES Filing and regulatory fees Management fees (Note 5) Office and miscellaneous Professional fees (Note 5) Write-off of exploration and evaluation assets (Note 3) Loss and comprehensive loss for theyear	$ 17,127 $ 14,876 72,000 72,000 15,913 19,190 62,340 63,851 271,635 -
	$ (439,015) $ (169,917)
Basic and diluted lossper common share	$ (0.04) $ (0.01)
Weighted average number of common shares outstanding	11,986,344 11,895,933

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

NEW TARGET MINING CORP .

STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIENCY) Expressed in Canadian Dollars

FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

				Share-based	Share-based
	Number of				payment			Total equity
	Shares	Capital stock			reserve		Deficit		(deficiency)
October 31, 2021	11,786,344	$	735,209	$	25,600	$	(241,195)	$	519,614
Shares issued for exploration and evaluation assets	200,000		30,000		-		-		30,000
Loss for theyear	-		-		-		(169,917)		(169,917)
October 31, 2022	11,986,344		765,209		25,600		(411,112)		379,697
Loss for theyear	-		-		-		(439,015)		(439,015)
October 31, 2023	11,986,344	$	765,209	$	25,600	$	(850,127)	$	(59,318)

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

NEW TARGET MINING CORP . STATEMENTS OF CASH FLOWS Expressed in Canadian Dollars YEARS ENDED OCTOBER 31,

	2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES Loss for the year Items not involving cash: Write-off of exploration and evaluation assets Changes in non-cash working capital items: Receivable Prepaid expense Accounts payable and accrued liabilities Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation costs BC Mining tax credit Net cash provided by (used in) investing activities Change in cash for the year Cash, beginning of year Cash, end of year	$ (439,015) $ (169,917) 271,635 - 767 4,144 1,550 1,392 77,806 8,255
	(87,257) (156,126)
	- (65,367) 9,073 9,060
	9,073 (56,307)
	(78,184) (212,433) 185,191 397,624
	$ 107,007 $ 185,191

There was no cash paid for interest or taxes for the years ended October 31, 2023 and 2022.

Supplemental cash flow information (Note 9)

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

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

1. NATURE AND CONTINUANCE OF OPERATIONS

New Target Mining Corp. (the “Company”) was incorporated under the Business Corporations Act (British Columbia) on July 28, 2020. On March 2, 2021 the Company became a reporting issuer. On April 15, 2021, the Company completed its initial public offering and was listed on the TSX Venture Exchange (TSX-V) under the symbol NEW. Effective November 3, 2023, the Company’s listing on the TSX-V was transferred to the NEX board of the TSX-V and currently trades under NEW.H. The Company is an exploration stage junior mining company currently engaged in the identification, acquisition and exploration of mineral properties in Canada.

These financial statements have been prepared in accordance with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business rather than through a process of forced liquidation. The continued operations of the Company are dependent on its ability to develop a sufficient financing plan, receive financial support from related parties, complete sufficient equity financings or generate profitable operations in the future. These material uncertainties may cast significant doubt on the entity’s ability to continue as a going concern. The financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue business.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

These financial statements have been prepared using accounting policies consistent with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). They have been prepared on a historical cost basis, except for financial instruments classified as financial instruments at fair value through profit or loss, or fair value through other comprehensive loss which are stated at their fair value. In addition, these financial statements have been prepared using the accrual basis of accounting except for cash flow information. These financial statements are presented in Canadian dollars unless otherwise noted.

The policies applied in the financial statements are presented below and are based on IFRS issued and outstanding as of February 1, 2024, the date the Board of Directors approved the financial statements.

Estimates, judgments and assumptions

The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Estimates and assumptions are continually evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results could differ from these estimates.

The areas which require management to make significant judgments, estimates and assumptions in determining carrying values include, but are not limited to:

Significant accounting judgments

Significant accounting judgments that management has made in the process of applying accounting policies and that have the most significant effect on the amounts recognized in the financial statements include, but are not limited to, the recoverability of the carrying value of the Company’s exploration and evaluation assets and the going concern assumption.

Critical accounting estimates

There are no key assumptions concerning the future and other key sources of estimation uncertainty that have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities within the next financial year.

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

2. SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Financial instruments

Financial assets

The Company classifies its financial assets in the following categories: at fair value through profit or loss (“FVTPL”), at fair value through other comprehensive income (“FVTOCI”) or at amortized cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

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

Financial assets at FVTOCI - Investments in equity instruments at FVTOCI are initially recognized at fair value plus transaction costs. Subsequently they are measured at fair value, with gains and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.

Financial assets at amortized cost - Financial assets at amortized cost are initially recognized at fair value plus transaction costs and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date.

Financial assets are derecognized when they mature or are sold, and substantially all the risks and rewards of ownership have been transferred. Gains and losses on derecognition of financial assets classified as FVTPL or amortized cost are recognized in profit or loss. Gains or losses on financial assets classified as FVTOCI remain within accumulated other comprehensive income.

The Company has classified its cash at fair value through profit or loss.

Financial liabilities

The Company classifies its financial liabilities into one of two categories as follows:

Fair value through profit or loss – This category comprises derivatives and financial liabilities incurred principally for the purpose of selling or repurchasing in the near term. They are carried at fair value with changes in fair value recognized in profit or loss.

Financial liabilities at amortized cost – This category consists of liabilities carried at amortized cost using the effective interest method. These financial liabilities are initially recognized at fair value less directly attributable transaction costs.

The Company’s accounts payable and accrued liabilities are classified at amortized cost.

Financial instruments that are measured at fair value use inputs, which are classified within a hierarchy that prioritizes their significance. 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.

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

2. SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Exploration and evaluation assets

Once the legal right to explore a property has been acquired, all costs related to the acquisition, exploration, and evaluation of mineral properties are capitalized by property. These direct expenditures include such costs as materials used, surveying costs, drilling costs, payments made to contractors, and depreciation on plant and equipment during the exploration phase. Costs not directly attributable to exploration and evaluation activities, including general and administrative overhead costs, are expensed in the period in which they occur.

The Company may occasionally enter into farm-out arrangements, whereby the Company will transfer part of a mineral interest, as consideration, for an agreement by the farmee to meet certain exploration and evaluation expenditures which would have otherwise been undertaken by the Company. The Company does not record any expenditures made by the farmee on its behalf. Any cash consideration received from the agreement is credited against the costs previously capitalized to the mineral interest given up by the Company, with any excess cash accounted for as a gain on disposal.

Mining exploration tax credits for certain exploration expenditures incurred are treated as a reduction of the exploration and development costs of the respective resource property. The amounts are recorded in the year they are received due to the uncertainty related to collection.

When a project is deemed to no longer have commercially viable prospects to the Company, exploration and evaluation expenditures in respect of that project are deemed to be impaired. As a result, those exploration and evaluation expenditure costs, in excess of estimated recoveries, are written off to the statement of loss.

The Company assesses exploration and evaluation assets for impairment when facts and circumstances suggest that the carrying amount of an asset may exceed its recoverable amount.

Once the technical feasibility and commercial viability of extracting the mineral resource has been determined, the property is considered to be a mine under development and is classified as “mines under construction.” Exploration and evaluation assets are also tested for impairment before the assets are transferred to development properties.

As the Company currently has no operational income, any incidental revenues earned in connection with exploration activities are applied as a reduction to capitalized exploration costs.

Impairment of long-lived assets

At the end of each reporting period, the Company’s assets are reviewed to determine whether there is any indication that those assets may be impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

2. SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Provision for environmental rehabilitation

The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the retirement of exploration and evaluation assets and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. The net present value of future rehabilitation cost estimates arising from the decommissioning of plant and other site preparation work is capitalized to mining assets along with a corresponding increase in the rehabilitation 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 rehabilitation asset is depreciated on the same basis as mining assets.

The Company’s estimates of reclamation 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 mining assets with a corresponding entry to the rehabilitation provision. The Company’s estimates are reviewed annually for changes in regulatory requirements, discount rates, effects of inflation and changes in estimates.

Changes in the net present value, excluding changes in the Company’s estimates of reclamation costs, are charged to profit or loss for the period.

As at October 31, 2023 and 2022, the Company has determined that it does not have any decommissioning obligations.

Loss per share

The Company recognizes the dilutive effect on loss per share based on the use of the proceeds that could be obtained upon exercise of options, warrants and similar instruments. It assumes that the proceeds would be used to purchase common shares at the average market price during the year. For the years presented, this calculation proved to be antidilutive. Basic loss per share is calculated using the weighted average number of common shares outstanding during the period.

Share capital

The Company engages in equity financing transactions to obtain the funds necessary to continue operations and explore and evaluate resource properties. These equity financing transactions may involve issuance of common shares or units. A unit comprises a certain number of common shares and a certain number of share purchase warrants (“Warrants”). Depending on the terms and conditions of each equity financing agreement (“Agreement”), the Warrants are exercisable into additional common shares prior to expiry at a price stipulated by the Agreement. Warrants that are part of units are valued using the residual value method which involves comparing the selling price of the units to the Company’s share price on the announcement date of the financing. The market value is then applied to the common share, and any residual amount is assigned to the warrants. Warrants that are issued as payment for agency fee or other transaction costs are accounted for as share-based payments and are recognized in equity. When warrants are forfeited or are not exercised at the expiry date the amount previously recognized in equity remains in reserve.

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

2. SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Share capital (cont’d…)

In situations where share capital is issued, or received, as non-monetary consideration and the fair value of the asset received, or given up is not readily determinable, the fair market value (as defined) of the shares is used to record the transaction. The fair market value of the shares issued, or received, is based on the trading price of those shares on the appropriate Exchange on the date the shares are issued.

Share issuance costs

Share issue costs are deferred and charged directly to share capital on completion of the related equity financing. If the financing is not completed, share issue costs are charged to profit or loss. Costs directly identifiable with the raising of capital will be charged against the related share capital. The Company uses the Black-Scholes option valuation model to value finder’s warrants issued in private placements. The fair value assigned to finder’s warrants is recorded as share issue costs and an increase to share-based payment reserve.

Income taxes

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 year, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous years.

Deferred tax is recorded using the statement of financial position 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; the initial recognition of assets or liabilities that affect neither accounting or taxable loss; and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. 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 statement of financial position date.

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.

Additional income taxes that arise from the distribution of dividends are recognized at the same time as the liability to pay the related dividend. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

New accounting standards

The Company has performed an assessment of new standards issued by the IASB that are not yet effective. The Company has assessed that impact of adopting these accounting standards on its financial statement would not be significant.

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

3. EXPLORATION AND EVALUATION ASSETS

A summary of the Company’s exploration and evaluation assets is as follows:

ScarlettProperty,BritishColumbia	Total
Acquisition costs Balance, October 31, 2022 Write-off Balance, October 31, 2023 Exploration costs Balance, October 31, 2022 BC Mining tax credit Write-off Balance, October 31, 2023 Total balance,October 31,2023	$ 90,729 (90,729)
	$ -
	$ 189,979 (9,073) (180,906)
	$ -
	$ -
ScarlettProperty,BritishColumbia	Total
Acquisition costs Balance, October 31, 2021 Option payment Balance, October 31, 2022 Exploration costs Balance, October 31, 2021 Field work BC Mining tax credit Balance, October 31, 2022 Total balance,October 31,2022	$ 40,729 50,000
	$ 90,729
	$ 153,672 45,367 (9,060)
	$ 189,979
	$ 280,708

Scarlett Property, British Columbia

On August 5, 2020, the Company entered into an option agreement, subsequently amended, to earn a 100% interest in the Scarlett Property in British Columbia. In order to earn the interest, the Company must make the following option payments:

• i) pay $12,000 (paid) within 10 days of execution of the agreement; ii) issue 150,000 common shares (issued); iii) pay $20,000 (paid), issue 200,000 common shares (issued) and incur $200,000 in exploration expenditures by the 12-month anniversary of the Listing Date;

• iv) pay $20,000, issue 200,000 common shares and incur an additional $200,000 in exploration expenditures by the 24-month anniversary of the Listing Date;

• v) pay $25,000, issue 300,000 common shares and incur an additional $200,000 in exploration expenditures by the 36-month anniversary of the Listing Date;

• vi) pay $50,000, issue 500,000 common shares and incur an additional $200,000 in exploration expenditures by the 48-month anniversary of the Listing Date.

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

3. EXPLORATION AND EVALUATION ASSETS (cont’d…)

Scarlett Property, British Columbia (cont’d…)

If the Scarlett Property is acquired by the Company, then it will be required to pay a 1.0% net smelter returns royalty payable upon the commencement of commercial production.

On June 1, 2023, the Company decided not to continue with the Scarlett Property, and wrote off exploration and evaluation assets of $271,635.

4. CAPITAL STOCK

Authorized share capital

Unlimited number of Class A common shares without par value. Unlimited number of Class B preferred shares without par value of which none are issued and outstanding.

Escrow shares

The Company entered into an escrow agreement, whereby common shares will be held in escrow and are scheduled for release at 10% on the listing date and 15% every six months from date of listing. At October 31, 2023, there were 585,000 (2022 – 1,755,000) common shares held in escrow.

Issued share capital

During the year ended October 31, 2023, the Company had no share activity.

During the year ended October 31, 2022, the Company issued 200,000 common shares with a value of $30,000 pursuant to the acquisition for the Scarlett Property (Note 3).

Issued warrants

As at October 31, 2022 and 2021, the Company had 240,000 warrants outstanding exercisable at $0.15 until April 15, 2023. During the year ended October 31, 2023, the warrants expired.

As at October 31, 2023, the Company had no outstanding warrants.

5. RELATED PARTY BALANCES AND TRANSACTIONS

Transactions with related parties and key management personnel are as follows:

Nature of transactions	Year ended October 31, 2023 2022
	$ 72,000 $ 72,000 36,000 36,000

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

5. RELATED PARTY BALANCES AND TRANSACTIONS (cont’d…)

The amounts due to other related parties and key management personnel included in accounts payable and accrued liabilities are as follows:

	As at October 31, 2023 As at October 31, 2022
Due to the CEO and director Due to a partnership in which the CFO has an interest	$ 108,229 $ 53,550 47,250 23,625
	$ 155,479 $ 77,175

The amounts due to related parties are unsecured, non-interest bearing and are due on demand.

6. CAPITAL MANAGEMENT

The Company manages its capital structure to maximize its financial flexibility making adjustments to it in response to changes in economic conditions and the risk characteristics of the underlying assets and business opportunities. The Company does not presently utilize any quantitative measures to monitor its capital and is not subject to externally imposed capital requirements. There were no changes in the Company’s approach to capital management during the year ended October 31, 2023.

7. FINANCIAL INSTRUMENTS AND RISK

Fair values

The Company’s financial assets measured at fair value on a recurring basis were calculated as follows:

			Quoted Prices in	Quoted Prices in	Significant
				Active Markets	Other	Significant
				for Identical	Observable	Unobservable
				Assets	Inputs	Inputs
		Balance		(Level 1)	(Level 2)	(Level 3)
As at October 31, 2023
Cash	$	107,007	$	107,007	$ -	$ -
As at October 31, 2022
Cash	$	185,191	$	185,191	$ -	$ -

The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below:

Credit risk

Credit risk is the risk of loss associated with the counterparty’s inability to fulfill its payment obligations. As at October 31, 2023, the Company had a $3,139 (2022 - $3,906) receivable from government authorities in Canada. The Company believes it has no significant credit risk.

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

7. FINANCIAL INSTRUMENTS AND RISK (cont’d…)

Liquidity risk

The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at October 31, 2023, the Company had a cash balance of $107,007 (2022 - $185,191) to settle accounts payable and accrued liabilities of $173,814 (2022 - $96,008). The Company will require financing from lenders, shareholders and other investors to generate sufficient capital to meet its short-term business requirements. All of the Company’s financial liabilities have contractual maturities of 30 days or due on demand and are subject to normal trade terms.

Market risk

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

a) Interest rate risk

The Company has cash balances. The Company is satisfied with the credit ratings of its bank. As of October 31, 2023, the Company did not hold any investments. The Company believes it has no significant interest rate risk.

• b) Foreign currency risk

As at October 31, 2023, the Company was not exposed to foreign currency risk.

c) Price risk

The Company is exposed to price risk with respect to commodity and equity prices. Equity price risk is defined as the potential adverse impact on the Company’s earnings due to movements in individual equity prices or general movements in the level of the stock market. 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 of gold and other precious and base metals, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company. Fluctuations may be significant. Much of this is out of the control of management and will be dealt with based on circumstances at any given time.

8. SEGMENTED INFORMATION

The Company has one operating segment, being the exploration of exploration and evaluation assets in Canada.

9. SUPPLEMENTARY CASH FLOW INFORMATION

		Year ended	Year ended	October 31,
		2023		2022
Non-cash investing and financing activities
Shares issued for mineralproperty	$	-	$	30,000

NEW TARGET MINING CORP . NOTES TO THE FINANCIAL STATEMENTS Expressed in Canadian Dollars FOR THE YEARS ENDED OCTOBER 31, 2023 AND 2022

10. INCOME TAXES

A reconciliation of income taxes at statutory rate with the reported taxes is as follows:

		Year ended		Year ended
		October 31, 2023		October 31, 2022
Loss for the year	$	(439,015)	$	(169,917)
Expected income tax (recovery) – 27%	$	(118,534)	$	(45,878)
True up and other		3,520		(1,727)
Change in unrecognized tax benefits		115,014		47,605
Total income tax expense (recovery)	$	-	$	-

The significant components of the Company’s deductible temporary differences, unused tax credits and unused tax losses that have not been included on the statement of financial position are as follows:

		Year ended			Year ended
	October 31, 2023		Expiry	October 31, 2022		Expiry
Non-capital losses	$	595,000	2039-2043	$	320,000	2041-2042
Exploration and evaluation
assets		163,000	None		-	None
Share issuance costs		29,000	2024-2026		40,000	2023-2026
Total	$	787,000		$	360,000

The following is the analysis of recognized deferred income tax assets and deferred income tax liabilities are presented below:

		Year ended		Year ended
		October 31, 2023		October 31, 2022
Deferred tax liabilities
Exploration and evaluation assets	$	-	$	(29,000)
Deferred tax assets
Non-capital losses		-		29,000
Net deferred tax assets (liabilities)	$	-	$	-

Tax attributes are subject to review, and potential adjustment, by tax authorities.