New Tymbal Resources Ltd. — Interim / Quarterly Report 2021

Jun 29, 2021

TYMBAL RESOURCES LTD. CONDENSED INTERIM FINANCIAL STATEMENTS

(UNAUDITED)

For the three months ended April 30, 2021

NOTICE OF NO AUDITORS’ REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS

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

The accompanying condensed interim financial statements of the Company have been 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 in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of condensed interim financial statements by an entity’s auditor.

TYMBAL RESOURCES LTD.

TYMBAL RESOURCES LTD. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

Expressed in Canadian Dollars

__________ April 30, 2021 ASSETS Current Assets Cash $ 4,759 Accounts receivable 2,577 Deposit 30,731 Total Current Assets 38,067 Non Current Assets Exploration and evaluation assets – Note 5 165,217 Total Non Current Assets 165,217 Total Assets $ 203,284 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Trades and other payables $ 2,246,721 Loans payable 1,017,700 3,264,421 Shareholders’ Deficiency Share capital – Note 6 8,160,581 Contributed surplus – Note 6 7,500 Accumulated deficit ( 11,229,218) Total Shareholders’ Deficiency ( 3,061,137) Total Liabilities and Shareholders’ Equity $ 203,284 Signed on behalf of the Board of Directors by: “Hayden Ross” “Sammy Cheng” Director Director	__________ April 30, 2021 ASSETS Current Assets Cash $ 4,759 Accounts receivable 2,577 Deposit 30,731 Total Current Assets 38,067 Non Current Assets Exploration and evaluation assets – Note 5 165,217 Total Non Current Assets 165,217 Total Assets $ 203,284 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Trades and other payables $ 2,246,721 Loans payable 1,017,700 3,264,421 Shareholders’ Deficiency Share capital – Note 6 8,160,581 Contributed surplus – Note 6 7,500 Accumulated deficit ( 11,229,218) Total Shareholders’ Deficiency ( 3,061,137) Total Liabilities and Shareholders’ Equity $ 203,284 Signed on behalf of the Board of Directors by: “Hayden Ross” “Sammy Cheng” Director Director	___ April 30, 2021 $ 4,759 2,577 30,731 38,067 165,217 165,217 $ 203,284 $ 2,246,721 1,017,700 3,264,421 8,160,581 7,500 ( 11,229,218) ( 3,061,137) $ 203,284	_ January 31, 2021 $ 1,404 1,788 25,731
			28,923
			165,217 165,217 $ 194,140 $ 2,216,668 936,500
			3,153,168
			8,160,581 7,500 ( 11,127,109)
			( 2,959,028)
			$ 194,140
	“Sammy Cheng”
	Director

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

TYMBAL RESOURCES LTD.

CONDENSED INTERIM STATEMENTS OF COMPREHENSIVE LOSS/INCOME (UNAUDITED)

Expressed in Canadian Dollars For the three months ended

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Administrative expenses Administration – Note 7 Audit and accounting Bank charges Consulting fees Filing fees Furniture rental Mineral tenure litigation Loan interest Office Parking Regulatory compliance Rent Telephone Transfer agent fees Travel and promotion Total administrative expenses: Loss and total comprehensive loss for the period Loss per share, basic and diluted Weighted average number of common shares outstanding	April 30, 2021 10,890 1,875 59 - 5,200 3,921 3,193 47,393 8,712 298 10,800 4,500 2,100 778 2,390 102,109 $ 102,109 $- 33,826,273		April 30, 2020 10,890 1,750 30 4,800 5,200 3,921 - 43,093 8,895 880 10,800 4,500 2,100 597 2,281	April 30, 2020 10,890 1,750 30 4,800 5,200 3,921 - 43,093 8,895 880 10,800 4,500 2,100 597 2,281
		99,737 $ 99,737 $- 33,826,273	$	99,737 99,737
				-

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

TYMBAL RESOURCES LTD. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) Expressed in Canadian Dollars

---

Balance at February 1, 2020 Loss for the period Balance at April 30, 2020 Balance at February 1, 2021 Loss for the period Balance at April 30, 2021	$	Share Capital 8,160,581 - 8,160,581 8,160,581 - 8,160,581	Contributed Surplus $ 7,500 - $ 7,500 $ 7,500 - $ 7,500	$( ( $(	Deficit 10,717,303) 99,737) 10,817,040) 11,127,109) 102,109) 11,229,218)	Total Shareholder Equity/ (Deficiency) ( 2,549,222) ( 99,737) $( 2,648,959) ( 2,959,028) ( 102,109) $( 3,061,137)
	$		$
	$		$	$( (		( (
	$		$	$(		$(

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

TYMBAL RESOURCES LTD. CONDENSED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)

Expressed in Canadian Dollars For the three months ended

_____ Cash flows from operating activities Loss for the period Changes in non-cash working capital balances: Accounts receivable Trade and other payables Deposit Loans payable Net cash used in operating activities Investing activities Exploration and evaluation asset expenditures Total decrease in cash during the period Cash, beginning of the period Cash, end of the period	______ April 30, 2021 $( 102,109) ( 789) ( 30,053) ( 5,000) 81,200 3,355 - 3,355 1,404 $ 4,759	____ April 30, 2020 $( 99,737) ( 623) 73,749 - -	____ April 30, 2020 $( 99,737) ( 623) 73,749 - -	____ April 30, 2020 $( 99,737) ( 623) 73,749 - -
		( (		26,611) 28,736)
		( $		55,347) 194,037
	$		$	138,690

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

TYMBAL RESOURCES LTD. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Expressed in Canadian Dollars For the three months ended April 30, 2021

1. Corporate Information

Tymbal Resources Ltd.’s (“Tymbal” or the “Company”) business activity is the exploration and evaluation of mineral properties in Canada. The Company was incorporated under the Canada Business Corporations Act on June 10, 1980, and has continued as a company under the Business Corporations Act of British Columbia. The Company is listed on the TSX Venture Exchange, having the symbol CID-V, as a Tier 2 mining issuer and is in the process of exploring its mineral properties.

The address of the Company's corporate office and principal place of business is suite 600, 850 West Hastings Street, Vancouver, British Columbia, Canada V6C 1E1.

2. Basis of Preparation

These condensed interim financial statements for the three month period ended April 30, 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting.

These condensed interim financial statements should be read in conjunction with the Company’s 2020 annual financial statements which have been prepared in accordance with International Financial Reporting Standards (-IFRS) as issued by the International Accounting Standards Board (-IASB).

The condensed interim financial statements have been prepared using accounting policies consistent with those used in the Company’s 2021 annual financial statements except for income tax expense which is recognized in each interim period based on the best estimate of the weighted average annual income tax rate expected for the full financial year.

The condensed interim financial statements are presented in Canadian dollars, which is also the Company’s functional currency.

These condensed interim financial statements were authorized for issue by the Board of Directors on June 28, 2021.

The preparation of financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher degree of judgment of complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.

a) Going Concern of Operations

The Company has not generated revenue from operations. The Company incurred a net loss of $102,109 during the three months ended April 30, 2021 (2020: $99,737) and as of that date the Company’s deficit was $11,229,218 (2020: $10,817,040). The Company expects to incur further losses in the development of its business, all of which casts significant doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to raise the necessary funds and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Although the Company has successfully raised funds in the past, there is no assurance that it will be able to do so in the future.

TYMBAL RESOURCES LTD.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Expressed in Canadian Dollars For the three months ended April 30, 2021

1. Basis of preparation – (cont’d)

2. b) Accounting standards issued but not yet effective

A number of new standards, and amendments to standards and interpretations, are not yet effective for the quarter ended April 30, 2021, and have not been applied in preparing these financial statements.

IFRS 16, Leases (New)

The Company has not early adopted these revised standards and is currently assessing the impact that these standards will have on the financial statements.

Other accounting standards or amendments to existing accounting standards that have been issued but have future dates are either not applicable or are not expected to have a significant impact on the Company’s financial statements.

3.

Critical Accounting Estimates and Judgments

The Company makes estimates and assumptions about the future that affect the reported amounts of assets and liabilities. Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.

The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income in the period of the change, if the change affects that period only, or in the period of the change and future years, if the change affects both.

Information about critical judgments in applying accounting policies and sources of estimation uncertainty that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the condensed interim financial statements within the next financial year are the same as those that applied to the Company’s 2021 annual financial statements.

1. Cash and cash equivalents

Cash equivalents are comprised of guaranteed investment certificates held at chartered Canadian financial institutions. Cash at banks and on hand earns interest at floating rates based on daily bank deposit rates.

TYMBAL RESOURCES LTD.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Expressed in Canadian Dollars For the three months ended April 30, 2020

5. Exploration and evaluation assets

Iron Mask Property, Kamloops Mining Division Acquisitions costs – cash Mineral tax credit Consulting Legal and professional fees Miscellaneous		January 31, 2021 $ 1,363 ( 1,690) 30,292 133,252 2,000 $ 165,217	Addition/ (Write-down) - - - - - $-	April 30, 2020 $ 1,363 ( 1,690) 30,292 133,252 2,000	April 30, 2020 $ 1,363 ( 1,690) 30,292 133,252 2,000
		$ (
		$		$	165,217

Iron Mask Property

The Company has a 100% working interest in the Iron Mask Property consisting of ten mineral claims situated in the Kamloops Mining Division, British Columbia which was acquired for $6,000 cash and the issuance of 100,000 common shares of the Company with a fair value of $40,000. During the year ended January 31, 2007, the carrying value of the property was written down to a nominal value of $1.

In May 2016, the Company filed a statement of claim against KGHM Ajax Mining Inc. (“KAM”) for breach of an agreement and for conducting alleged unauthorized exploration work on the Company’s Iron Mask property. The Company alleges that, in September 2013, it entered into negotiations with KAM to option the Iron Mask mineral tenures for commitments including an initial payment of $1,350,000, an exploration program and a 20% net profit interest. Prior to completion of the agreement, KAM commenced unauthorized exploration activity on the Iron Mask property and applied to have the permit amended to evict the Company off its exclusive mineral tenure rights. The statement of claim is ongoing and although the Company is confident that they will be successful in this claim, the outcome of the claim is unknown and cannot be quantified.

6. Share Capital and Reserves

i) Authorized:

400,000,000 common shares without par value

The holders of common shares are entitled to receive dividends which are declared from time to time, and are entitled to one vote per share at meetings of the Company. All shares are ranked equally with regards to the Company’s residual assets.

ii)Issued: Balance at February 1, 2019 Less: 10 for share consolidation Issued for cash -pursuant to private placements at $0.05 Less: finders’ fee Balance at January 31, 2020, 2021 and April 30, 2021	Number of Shares # Amount $ Contributed Surplus $
	288,262,772 7,919,331 7,500 (259,436,499) 28,826,273 5,000,000 250,000 - - (8,750) -
	33,826,273 8,160,581 7,500

TYMBAL RESOURCES LTD.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Expressed in Canadian Dollars For the three months ended April 30, 2021

6.

Share Capital and Reserves (Cont’d)

Share Purchase Warrants: Balance at January 31, 2019 Warrants issued Balance at January 31, 2020, 2021 and April 30, 2021	Number of Warrants # Exercise Price $
	Nil - 5,000,000 0.05
	5,000,000 0.05

During the quarter ended January 31, 2020, the Company completed a non-brokered private placement of 5 million units of the Company at a price of 5 cents per unit, for gross proceeds of $250,000.00. Each unit consists of one common share and one transferable share purchase warrant. Each warrant entitles the holder to acquire one additional share at a price of 5 cents per share for a period of five years expiring on November 13, 2024. The hold period for the units expired on March 14, 2020.

7. Related Party Transactions

During the three months ended April 30, 2021, the Company incurred the following costs charged a private company controlled by directors:

company controlled by directors:
Administration		2021 10,890 10,890		2020 10,890
	$		$	10,890

Total compensation to key management personnel was $10,890 during the three months ended April 30, 2021 (2020: $10,890).

At April 30, 2021 trades and other payables includes $13,500 (2020: $13,500) due to directors of the company. The charges were measured by the exchange amount which is the amount agreed upon by the transacting parties.

8. Segmental Reporting

The Company is organized into business units based on mineral properties and has one reportable operating segment, being that of acquisition and exploration and evaluation activities.

9. Events After the Reporting Date

There were no events subsequent to the quarter ended April 30, 2021. For more events subsequent to April 30, 2021, please refer to the July 31, 2021 quarterly report for more details and updated information.