Newfoundland Discovery Corp. — Interim / Quarterly Report 2021

Mar 15, 2021

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Great Thunder Gold Corp. (An exploration stage company) Condensed Interim Financial Statements (Unaudited)

January 31, 2021

Contents

Notice of No Auditor Review ................................................................................................................... 3 Condensed Interim Statements of Financial Position .......................................................................... 4 Condensed Interim Statements of Operations and Comprehensive Loss ........................................ 5 Condensed Interim Statements of Changes in Equity ......................................................................... 6 Condensed Interim Statements of Cash Flows ..................................................................................... 7 Condensed Interim Notes to the Financial Statements ....................................................................... 8

2

Notice of No Auditor Review

The accompanying unaudited condensed interim financial statements were prepared by management and approved by the Board of Directors.

The Company’s independent auditor has not performed a review of these condensed interim financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity’s auditor.

3

Great Thunder Gold Corp. (An exploration stage company) Condensed Interim Statements of Financial Position (Unaudited)

		January 31, 2021	January 31, 2021	April 30, 2020	April 30, 2020
ASSETS
	Current assets
	Cash and cash equivalents	$	4,546,909	$	1,608,454
	Accounts receivable		36,320		8,662
	Prepaid expenses		704,520		18,840
			5,287,749		1,635,956
	Non-current assets
	Investments (note 5)		3,815		1,500
	Reclamation bonds (note 6)		13,000		13,000
	Exploration and evaluation assets (note 7)		4,432,393		2,569,921
		$	9,736,957	$	4,220,377
	LIABILITIES
	Current liabilities
	Accounts payable and accrued liabilities	$	18,999	$	30,566
	Due to related parties (note 9)		-		20,889
	Flow-through share premium (note 8)		851,807		432,250
			870,806		483,705
	SHAREHOLDERS’ EQUITY
	Share capital (note 8)		22,833,479		17,016,252
	Share-based payment reserve		1,423,781		87,789
	Accumulated other comprehensive income		2,465		149
	Deficit		(15,393,574)	(13,367,518)
			8,866,151		3,736,672
		$	9,736,957	$	4,220,377

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

The accompanying Notes to the Condensed Interim Financial Statements are an integral part of these financial statements

4

Great Thunder Gold Corp. (An exploration stage company) Condensed Interim Statements of Operations and Comprehensive Loss (Unaudited)

	For the Three Months	For the Three Months	For the Nine Months	For the Nine Months
	Ended January 31		Ended	January 31
	2021	2020	2021	2020
GENERAL AND ADMINISTRATIVE EXPENSES
Accounting and audit (recovery)	$ (1,249)	$ -	$ 3,051	$ 721
Consulting	49,076	-	259,466	-
Insurance	994	963	2,959	2,887
Interest	-	1,605	-	5,412
Investor relations and shareholder information	193,773	109	316,807	109
Legal fees	36,593	5,676	93,615	18,348
Listing and filing fees	3,900	9,978	28,418	14,494
Management fees (note 9)	48,978	25,044	173,275	61,252
Office	615	381	7,664	2,182
Rent	12,000	7,500	31,500	22,500
Share-based compensation (note 8)	-	-	1,241,078	-
Transfer agency fees	9,437	8,583	15,899	10,176
	354,117	59,839	2,173,732	138,081
OPERATING LOSS	(354,117)	(59,839)	(2,173,732)	(138,081)
OTHER INCOME (EXPENSE)
Flow-through recovery	19,232	-	115,205	-
Interest income	1,087	32	3,209	372
Loss on settlement of debt	-	(118,860)	-	(118,860)
Realized loss on investments (note 5)	-	-	(1)	-
LOSS FOR THE PERIOD	(333,798)	(178,667)	(2,055,319)	(256,569)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to
profit or loss
Unrealized gain on investments (note 5)	463	443	2,316	952
TOTAL COMPREHENSIVE LOSS	$ (333,335) $ (178,224)		$(2,053,003)	$ (255,617)
LOSS PER SHARE(basic and diluted)	$ (0.01)	$ (0.01)	$ (0.07)	$ (0.02)
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING(basic and diluted)	34,442,372	13,226,336	30,681,780	12,451,165

The accompanying Notes to the Condensed Interim Financial Statements are an integral part of these financial statements

5

(An exploration stage company)

Great Thunder Gold Corp.

Condensed Interim Statements of Changes in Equity (Unaudited)

				Accumulated	Accumulated
			Share-Based	Other
	Issued Share Capital		Payment	Comprehensive
	Number	Amount	Reserve	Income (Loss)		Deficit	Total
Balances, April 30, 2019	12,063,579	$ 14,717,800	$ 154,003	$	(350) $ (12,999,126)		$ 1,872,327
Shares issued in settlement of debt	5,942,981	475,439	-		-	-	475,439
Transfer upon option expiration	-	-	(36,951)		-	36,951	-
Loss for the period	-	-	-		-	(256,569)	(256,569)
Other comprehensive income
Unrealized gain on investments (note 5)	-	-	-		952	-	952
Balances, January 31, 2020	18,006,560	15,193,239	117,052		602	(13,218,744)	2,092,149
Shares issued for exploration and evaluation assets	2,250,000	450,000	-		-	-	450,000
Shares issued for cash	5,400,000	1,343,750	-		-	-	1,343,750
Transfer upon option exercise and expiration	-	29,263	(29,263)		-	-	-
Loss for the period	-	-	-		-	(148,774)	(148,774)
Other comprehensive loss
Unrealized loss on investments	-	-	-		(453)	-	(453)
Balances, April 30, 2020	25,656,560	17,016,252	87,789		149	(13,367,518)	3,736,672
Shares and warrants issued for cash	6,836,851	5,244,429	-		-	-	5,244,429
Allocation of proceeds to flow-through share premium	-	(534,762)	-		-	-	(534,762)
Shares issued for exploration and evaluation assets	2,350,100	1,466,045	-		-	-	1,466,045
Share issue costs	-	(358,485)	124,177		-	-	(234,308)
Transfer upon option expiration	-	-	(29,263)		-	29,263	-
Share-based compensation	-	-	1,241,078		-	-	1,241,078
Loss for the period	-	-	-		-	(2,055,319)	(2,055,319)
Other comprehensive income
Unrealized gain on investments (note 5)	-	-	-		2,316	-	2,316
Balances, January 31, 2021	34,843,511	$ 22,833,479	$ 1,423,781	**$ **	2,465 $ (15,393,574)		$ 8,866,151

The accompanying Notes to the Condensed Interim Financial Statements are an integral part of these financial statements

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Great Thunder Gold Corp. (An exploration stage company) Condensed Interim Statements of Cash Flows (Unaudited)

		Nine Months Ended January 31	Nine Months Ended January 31	Nine Months Ended January 31
		2021		2020
OPERATING ACTIVITIES
	Loss for the period	$ (2,055,319)	$	(256,569)
	Adjustment for items not involving cash:
	Share-based compensation	1,241,078		-
	Flow-through recovery	(115,205)		-
	Loss on settlement of debt	-		118,860
	Realized loss on investments	1		-
		(929,445)		(137,709)
	Changes in non-cash working capital:
	Accounts receivable	(27,658)		27,342
	Prepaid expenses	(685,680)		2,937
	Accounts payable and accrued liabilities	(11,567)		(27,427)
	Due to related parties	(20,889)		(78,074)
		(1,675,239)		(212,931)
	INVESTING ACTIVITY
	Investment in exploration and evaluation assets	(396,427)		(28,908)
	FINANCING ACTIVITIES
	Proceeds from issuance of shares and warrants, net	5,010,121		-
	Proceeds from issuance of promissory notes	-		180,000
		5,010,121		180,000
	NET CHANGE IN CASH AND CASH EQUIVALENTS	2,938,455		(61,839)
	CASH AND CASH EQUIVALENTS, beginning of period	1,608,454		75,015
	CASH AND CASH EQUIVALENTS,end ofperiod(note 13)	$4,546,909	$	13,176
	SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION
	Interest received	$ 3,209	$	372
	Interest paid	-		-
	Income taxes	-		-

Non-cash Transactions (note 14)

The accompanying Notes to the Condensed Interim Financial Statements are an integral part of these financial statements

7

(An exploration stage company)

Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

Great Thunder Gold Corp.

1. NATURE OF OPERATIONS AND GOING CONCERN

Great Thunder Gold Corp. is incorporated under the laws of the Province of British Columbia, Canada. The Company owns interests in exploration and evaluation assets in the Provinces of Quebec and British Columbia, Canada, and its principal business is the exploration and development of those assets. The Company`s head office and principal place of business is 1100 Melville Street, Suite 830, Vancouver, British Columbia, Canada.

The Company is in the exploration stage with respect to its exploration and evaluation assets and has not yet determined whether those assets contain ore reserves that are economically recoverable. The carrying value of these assets represents the total of net costs capitalized and is not intended to reflect either their present or future value.

The recoverability of amounts shown for exploration and evaluation assets is dependent upon the discovery of economically recoverable reserves, confirmation of the Company’s legal interest in the assets, the ability of the Company to obtain the necessary financing to complete development, and future profitable production or proceeds from the disposition of the assets. For those exploration and evaluation assets in which it has a joint venture interest, the Company is required to contribute its proportionate share of costs or accept dilution of its interest.

These condensed interim financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and meet its obligations in the ordinary course of business. As of January 31, 2021, the Company had working capital of $4,416,943 (April 30, 2020 – $1,152,251) and an accumulated deficit of $15,393,574 (April 30, 2020 – $13,367,518). The Company will need to raise new funds through the sale of shares to maintain operations and carry out its planned exploration. The material uncertainty raised by these events and conditions may cast significant doubt about its ability to continue as a going concern. These condensed interim financial statements do not reflect adjustments for the possible future effect on the recoverability and classification of the assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. Realization values may be substantially different from carrying values as shown in these condensed interim financial statements should the Company be unable to continue as a going concern.

In early 2020, there was a global outbreak of a novel coronavirus identified as COVID-19. On March 11, 2020, the World Health Organization declared a global pandemic. In order to combat the spread of COVID19, governments worldwide have enacted emergency measures including travel bans, legally enforced or self-imposed quarantine periods, social distancing and business and organization closures. These measures have caused material disruptions to businesses, governments and other organizations resulting in an economic slowdown and increased volatility in national and global equity and commodity markets. Central banks and governments, including Canadian federal and provincial governments, have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as is the efficacy of any interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the condensed interim financial results and condition of the Company and its operations in future periods.

8

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

2. BASIS OF PRESENTATION

Statement of compliance

These condensed interim financial statements, including comparatives, comply with IAS 34 – Interim Financial Reporting. The policies applied in these condensed interim financial statements are based on International Financial Reporting Standards (“IFRS”) issued and outstanding as of the date the Board of Directors approved these financial statements.

These condensed interim financial statements were authorized for issue by the Board of Directors of the Company. The Board of Directors has the power to amend these condensed interim financial statements after issuance, if applicable.

Statement of presentation

These condensed interim financial statements have been prepared on an historical cost basis except for certain items that are measured at fair value, including investments. All dollar amounts presented are in Canadian dollars, which is the Company’s functional and presentation currency, unless otherwise specified. The accounting policies described herein have been applied consistently to all periods presented in these condensed interim financial statements.

3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of these condensed interim financial statements requires management to make judgments and estimates that affect the reported amounts of assets and liabilities at the date of the condensed interim financial statements and reported amounts of expenses during the period. Actual outcomes could differ from these judgments and estimates. Revisions to accounting estimates are recognized in the period in which the estimate is revised and may affect both current and future periods.

Significant assumptions about the future and other sources of judgments and estimates that management has made at the date of the condensed interim statement of financial position, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to:

Critical accounting judgments

Critical accounting judgments are accounting policies that have been identified as being complex or involving subjective judgments or assessments. The Company made the following critical accounting judgments:

Exploration and evaluation assets

The application of the Company’s accounting policy for exploration and evaluation expenditures requires judgment in determining whether it is likely that future economic benefits will flow to the Company, which may be based on assumptions about future events or circumstances. Assumptions made may change if new information becomes available. If, after an expenditure is capitalized, information becomes available suggesting that the recovery of the expenditure is unlikely, the amount capitalized is written off to profit or loss in the period the new information becomes available.

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Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS (continued)

Critical accounting judgments (continued)

Exploration and evaluation assets (continued)

Once technical feasibility and commercial viability of an exploration and evaluation asset can be demonstrated, it is reclassified from exploration and evaluation assets and subject to different accounting treatment. At the end of the period, management had determined that no reclassification of exploration and evaluation assets was required.

Critical accounting estimates

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

Share-based payments

The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date on which they are granted. Estimating fair value for the sharebased payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model, including the expected life of the share option, expected forfeiture rate, volatility and dividend yield, and making assumptions about them. The assumptions and models used for estimating fair value of share-based payment transactions is described in notes 4 and 8.

Reclamation and environmental obligations

Reclamation provisions have been created based on internal estimates. Assumptions, based on the current economic environment, have been made which management believes are a reasonable basis upon which to estimate the future liability. Estimates are reviewed annually and are based on current regulatory requirements. Significant changes in estimates of contamination, restoration standards and techniques will result in changes to provisions from period to period.

Actual reclamation costs will ultimately depend on future market prices for the reclamation costs, which will reflect the market condition at the time reclamation costs are actually incurred.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Financial instruments

The Company recognizes a financial asset or financial liability in the condensed interim statements of financial position when it becomes party to the contractual provisions of the financial instrument. Financial assets are initially measured at fair value and are derecognized either when the Company has transferred substantially all the risks and rewards of ownership of the financial asset, or when cash flows expire. Financial liabilities are initially measured at fair value and are derecognized when the obligation specified in the contract is discharged, cancelled or expired.

A write-off of a financial asset (or a portion thereof) constitutes a derecognition event. Write-off occurs when the Company has no reasonable expectations of recovering the contractual cash flows on a financial asset.

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Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Financial instruments (continued)

Classification and Measurement

The Company determines the classification of its financial instruments at initial recognition. Financial assets and financial liabilities are classified according to the following measurement categories:

• a) those to be measured subsequently at fair value, either through profit or loss (“FVTPL”) or through other comprehensive income (“FVTOCI”); and

• b) those to be measured subsequently at amortized cost.

The classification and measurement of financial assets after initial recognition at fair value depends on the business model for managing the financial asset and the contractual terms of the cash flows. Financial assets that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding, are generally measured at amortized cost at each subsequent reporting period. All other financial assets are measured at their fair values at each subsequent reporting period, with any changes recorded through profit or loss or through other comprehensive income (which designation is made as an irrevocable election at the time of recognition).

After initial recognition at fair value, financial liabilities are classified and measured at either:

• a) amortized cost;

• b) FVTPL if the Company has made an irrevocable election at the time of recognition, or when required (for items such as instruments held for trading or derivatives); or

• c) FVTOCI when the change in fair value is attributable to changes in the Company’s credit risk.

The Company reclassifies financial assets when and only when its business model for managing those assets changes. Financial liabilities are not reclassified.

Transaction costs that are directly attributable to the acquisition or issuance of a financial asset or financial liability classified as subsequently measured at FVTOCI or amortized cost are included in the fair value of the instrument on initial recognition. Transaction costs for financial assets and financial liabilities classified at FVTPL are expensed in profit or loss.

The Company’s financial assets consist of cash and cash equivalents which are classified and measured at FVTPL with realized and unrealized gains or losses related to changes in fair value reported in profit or loss, and accounts receivable and reclamation bonds which are classified at amortized cost. The Company’s investments are classified and measured at FVTOCI with realized and unrealized gains or losses related to changes in fair value reported in other comprehensive income. The Company’s financial liabilities consist of accounts payable and accrued liabilities, amounts due to related parties and promissory notes payable, which are classified and measured at amortized cost using the effective interest method. Interest expense is reported in profit or loss.

The effective interest method is a method of calculating the amortized cost of a financial asset or liability and of allocating interest income or expense over the relevant period. The effective interest rate is the rate that discounts estimated future cash payments through the expected life of the financial asset or liability, or where appropriate, a shorter period.

11

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Financial instruments (continued)

Impairment

The Company assesses all information available, including on a forward-looking basis, the expected credit losses associated with any financial assets carried at amortized cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition based on all information available, and reasonable and supportable forward-looking information.

Cash and cash equivalents

Cash and cash equivalents recorded in the condensed interim statements of financial position comprise cash at banks and short-term deposits with an original maturity of three months or less, which are readily convertible into a known amount of cash, and subject to insignificant risk of changes in fair value.

Exploration and evaluation assets

Pre-exploration costs

Pre-exploration costs are expensed in the period in which they are incurred.

Exploration and evaluation expenditures

Once the legal right to explore a property has been acquired, costs directly related to exploration and evaluation expenditures are recognized and capitalized, in addition to the acquisition costs. 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 administrative overhead costs, are expensed in the period in which they occur. The costs are accumulated in cost centres by exploration area and not depreciated pending determination of technical feasibility and commercial viability.

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 transferee 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 or other consideration received from the agreement is credited against the costs previously capitalized to the mineral interest given up by the Company, with any excess consideration accounted for as a gain in profit or loss.

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 profit or 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.

12

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Exploration and evaluation assets (continued)

The technical feasibility and commercial viability of extracting a mineral resource is considered to be determinable when proven or probable reserves exist. A review of each exploration license or field is carried out, at least annually, to ascertain whether proven or probable reserves have been discovered. Upon determination of proven or probable reserves, exploration and evaluation assets attributable to those reserves are first tested for impairment and then reclassified from exploration and evaluation assets to property, plant and equipment or expensed to exploration and evaluation impairments.

Exploration and evaluation expenditures are classified as intangible assets.

Impairment of long-lived assets

At each financial position reporting date, the carrying amounts of the Company’s long-lived assets are reviewed to determine whether there is any indication that those assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

An asset’s 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 ordinary transaction between market participants. 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 or cash generating unit 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.

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 so that the increased carrying amount 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 periods. A reversal of an impairment loss is recognized immediately in profit or loss.

Share capital

Common shares, options and warrants are classified as equity. Transaction costs directly attributable to the issue of common shares, options and warrants are recognized as a deduction from equity, net of any tax effects.

The Company bifurcates units which consist of common shares and share purchase warrants using the residual value approach, whereby it measures the common share component of the unit at fair value using market prices as input values and then allocates the residual value of the units over the fair value of the common shares to the warrant component. The value of the warrant component is credited to share-based payment reserve. When warrants are exercised, forfeited or expire, the corresponding value is transferred from share-based payment reserve to share capital.

13

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Flow-through shares

Resource expenditure deductions for income tax purposes related to exploration activities funded by flowthrough share arrangements are renounced to investors in accordance with income tax legislation. Pursuant to the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company bifurcates the flow-through share into: (a) share capital, and (b) a flow-through share premium equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability. Upon expenses being incurred, the Company derecognizes the liability and recognizes a deferred tax liability for the amount of tax reduction renounced to the shareholders. The premium is recognized as other income and the related deferred tax is recognized as a tax provision.

Proceeds from the issuance of flow-through shares are restricted to be used only for Canadian resource property exploration expenditures within a two-year period. The Company may also be subject to a Part XII.6 tax on flow-through proceeds renounced under the Look-back Rule, in accordance with Government of Canada flow-through regulations. When applicable, this tax is accrued as a financial expense until qualifying expenditures are incurred.

Share-based payment transactions

The Company’s stock option plan allows its employees and consultants to acquire shares of the Company. The fair value of options granted is recognized as an employee or consultant expense with a corresponding increase in share-based payment reserve. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee.

All share-based payments made to employees and non-employees are measured at fair value. For employees, fair value is measured as the fair value of the equity instruments at the grant date. For nonemployees, the fair value is measured on the earlier of the date at which the counterparty performance is complete, the date the performance commitment is reached, or the date at which the equity instruments are granted if they are fully vested and non-forfeitable. Share-based payments to non-employees are measured at the fair value of the goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured, and are recorded at the date the goods or services are received. The fair value of options and warrants granted is measured using the Black Scholes option pricing model. Expected annual volatility has been estimated using historical volatility.

Stock options that vest over time are recognized using the graded vesting method. Share-based payments are recognized as an expense or, if applicable, capitalized to exploration and evaluation assets or share issue costs, with a corresponding increase in reserves. At each financial reporting period, the amount recognized as expense is adjusted to reflect the number of share options expected to vest. When stock options are ultimately exercised, forfeited or expire, the applicable amounts of reserves are transferred to share capital or deficit.

Where the terms of a stock option are modified, the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification which increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee as measured at the date of modification over the remaining vesting period.

14

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Income taxes

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

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

Deferred tax is provided using the liability method, on 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 in a transaction that is not a business combination and that affects neither accounting nor taxable profit, 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 date of the condensed interim statement of financial position.

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.

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.

Provisions

Provisions are recognized where a legal or constructive obligation has been incurred as a result of past events, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. If material, provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in any provision due to passage of time is recognized as accretion expense.

Site restoration obligation

The Company recognizes the fair value of a legal or constructive liability for a site restoration obligation in the period in which it is incurred and when a reasonable estimate of fair value can be made. The carrying amount of the related long-lived asset is increased by the same amount as the liability. Changes in the liability for a site restoration obligation due to the passage of time will be measured by applying an interest method of allocation. The amount will be recognized as an increase in the liability and an accretion expense in profit or loss. Changes resulting from revisions to the timing or the amount of the original estimate of undiscounted cash flows are recognized as an increase or a decrease to the carrying amount of the liability and the related long-lived asset.

15

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Income (loss) per share

Basic income (loss) per common share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding for the period. Diluted per share amounts reflect the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted to common shares. The treasury stock method is used to determine the dilutive effect of stock options and other dilutive instruments. Under the treasury stock method, the weighted average number of shares outstanding used in the calculation of diluted income (loss) per share assumes that the deemed proceeds received from the exercise of stock options, share purchase warrants and their equivalents would be used to repurchase common shares of the Company at the average market price during the period. Diluted loss per share equals basic loss per share where the effect of dilutive instruments would be antidilutive.

Comprehensive income (loss)

Comprehensive income (loss) is the change in the Company’s net assets that results from transactions, events and circumstances from sources other than the Company’s shareholders and includes items that are not included in net income (loss), such as unrealized gains or losses on investments, gains or losses on certain derivative instruments, and certain foreign currency gains or losses. The Company’s comprehensive income (loss), components of other comprehensive income (loss), cumulative translation adjustments and unrealized gains (losses) on investments are presented in the condensed interim statements of operations and comprehensive loss and the condensed interim statements of changes in equity.

New accounting standards and interpretations recently adopted

The following standard was adopted by the Company effective May 1, 2020 but had no material impact on these condensed interim financial statements:

Amendments to IFRS 3: Business Combinations

Amendments to IFRS 3: Business Combinations assist in determining whether a transaction should be accounted for as a business combination or an asset acquisition. It amends the definition of a business to include an input and a substantive process that together significantly contribute to the ability to create goods and services provided to customers, generating investment and other income, and it excludes returns in the form of lower costs and other economic benefits.

5. INVESTMENTS

Investments in shares comprise the following:

			Accumulated
	Number of		Unrealized	January 31, 2021
	Shares	Cost	Gain (Loss)	Fair Value
Alchemist Mining Inc.	10,000	$ 900	$ (900)	$ -
Discovery Metals Corp.	2,062	450	3,365	3,815
		$1,350	$2,465	$3,815

16

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

5. INVESTMENTS (continued)

			Accumulated
	Number of		Unrealized	April 30, 2020
	Shares	Cost	Gain (Loss)	Fair Value
Alchemist Mining Inc.	10,000	$ 900	$ (350)	$ 550
Discovery Metals Corp.	2,062	450	499	949
Brettco Oil & Gas Inc.	50,000	1	-	1
		$1,351	$149	$ 1,500

During the nine-month period ended January 31, 2021, the Company recorded an unrealized gain of $2,316 (2020 – $952) in other comprehensive income. During the nine-month period ended January 31, 2021, the Company recorded a realized loss on the disposition of investments of $1 (2020 – nil).

Alchemist Mining Inc. and Discovery Metals Corp. are unrelated public companies. The fair value of these investments was determined using quoted market prices at the date of the condensed interim statements of financial position. In August 2019, the Company exchanged 3,750 Levon Resources Ltd. shares for 2,062 Discovery Metals Corp. shares pursuant to an amalgamation.

The Company owned a 16.67% equity interest in Oniva International Services Corporation, a private company with common management, which provided office and administration services to the Company until February 2019. The Company’s shares of Oniva were redeemed for a nominal sum in September 2019.

6. RECLAMATION BONDS

The Company has deposited funds and hypothecated term deposits totalling $13,000 (April 30, 2020 – $13,000) as security to the Province of British Columbia for future mineral claims site reclamation. The term deposits bear interest at a weighted average rate of 1.1% per annum (April 30, 2020 – 1.5%).

7. EXPLORATION AND EVALUATION ASSETS

			Valentine	Chubb &	Urban
	Northbound	Southern Star	Mountain	Bouvier	Thunder	Total
Balance, April 30, 2020	$ 514,037	$-	$1,388,238	$484,228	$183,418	$2,569,921
Acquisition costs incurred in the period
Purchase payments, cash	100,000	26,500	-	-	-	126,500
Purchase payments, shares	1,136,000	330,045	-	-	-	1,466,045
Other	508	4,062	-	4,841	1,325	10,736
	1,236,508	360,607	-	4,841	1,325	1,603,281
Exploration costs incurred in the period:
Drilling	1,320	3,625	-	-	-	4,945
Geological consulting	5,128	15,179	900	-	-	21,207
Geophysical	54,587	149,652	-	-	31,180	235,419
Mining tax credit	(2,380)	-	-	-	-	(2,380)
	58,655	168,456	900	-	31,180	259,191
Balance, January 31, 2021	$1,809,200	$529,063	$1,389,138	$489,069	$215,923	$4,432,393

17

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

7. EXPLORATION AND EVALUATION ASSETS (continued)

		Valentine	Chubb &	Urban
	Northbound	Mountain	Bouvier	Thunder	Total
Balance, April 30, 2019	$-	$1,373,138	$485,120	$183,418	$2,041,676
Acquisition costs incurred in the period
Option payments, cash	35,000	-	-	-	35,000
Option payments, shares	350,000	-	-	-	350,000
Purchase payments, cash	20,000	-	-	-	20,000
Purchase payments, shares	100,000	-	-	-	100,000
Other	537	-	-	-	537
	505,537	-	-	-	505,537
Exploration costs incurred in the period:
Geological consulting	8,500	1,200	-	-	9,700
Mining tax credits	-	-	(892)	-	(892)
Reclamation and site maintenance	-	13,900	-	-	13,900
	8,500	15,100	(892)	-	22,708
Balance, April 30, 2020	$514,037	$1,388,238	$484,228	$183,418	$2,569,921

Northbound Property

In September 2020, the Company exercised its option to purchase 21 mineral claims comprising 1,162 hectares located approximately 85 kilometres northwest of the town of Matagami in northern Quebec. To exercise its option, the Company paid the optionors $135,000 cash, issued 3,600,000 common shares with a fair value of $0.41 per share and granted to the optionors a 3% net smelter returns royalty. The Company may purchase two-thirds of the royalty at any time for $1,000,000.

In March and July 2020, the Company purchased an additional 35 mineral claims covering 1,914 hectares adjacent to the earlier-optioned Northbound claims for $20,000 cash, 250,000 common shares with a fair value of $0.40 per share, and a 3% net smelter returns royalty relating to 29 of those claims. The Company may purchase two-thirds of the royalty at any time for $1,500,000.

Southern Star Property

In June 2020, the Company purchased 219 mineral claims comprising 12,156 hectares located northwest of the town of Matagami, Quebec and south of the Company’s Northbound claims for a total of $26,500 cash, 750,100 common shares with a fair value of $0.44 per share, a 3% net smelter returns royalty over 143 of the claims of which two-thirds of the royalty may be repurchased for $3,000,000, and a 1.5% net smelter returns royalty over 76 of the claims of which half of the royalty may be repurchased for $500,000.

Valentine Mountain Property

In 2008 and 2009, the Company acquired a 100% interest in 25 mineral claims comprising approximately 7,188 hectares and two overlying placer claims comprising 43 hectares on Valentine Mountain located 50 kilometres west northwest of Victoria, British Columbia, Canada for total consideration of $39,158 and 29,167 common shares of the Company valued at $270,000. One of the claims is subject to a 5% net smelter returns royalty, which the Company may repurchase for $1,000,000.

18

(An exploration stage company)

Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

Great Thunder Gold Corp.

7. EXPLORATION AND EVALUATION ASSETS (continued)

Chubb & Bouvier Property

In May 2016, the Company entered into an option to purchase 53 mineral claims covering 2,227 hectares located near Val d’Or, Quebec, Canada. The Company exercised its option by paying $60,000 cash, issuing 600,000 common shares with a fair value of $0.54 per share, and granting a 2% gross metal royalty to the vendor. The Company also paid a finder’s fee of 42,000 common shares with a fair value of $0.54 per share in respect of the transaction. A portion of the property is also subject to a 1% net smelter returns royalty which can be repurchased for $200,000.

Urban Thunder Property

In March 2017, the Company acquired 20 mineral claims covering approximately 1,127 hectares in the Windfall Lake area of Quebec, Canada for $20,000, 750,000 shares with a value of $0.16 per share, and a 2% net smelter returns royalty. The Company also paid a finder’s fee totaling 75,000 shares with a value of $0.16 per share.

8. SHARE CAPITAL

Authorized

An unlimited number of common shares without par value.

Issued

Effective December 13, 2019, the Company completed a consolidation of its share capital whereby one new common share was issued for every four old common shares. All common share and commitments to issue common shares information has been restated retroactively throughout these condensed interim financial statements to reflect this share consolidation.

In January 2020, the Company issued 5,942,981 common shares with a fair value of $0.08 per share in settlement of $356,578 of debts, including the promissory notes, and recorded a related loss on settlement of debt of $118,861.

In February 2020, the Company issued 2,000,000 common shares with a fair value of $0.175 per share ($350,000 total) pursuant to an option to purchase exploration and evaluation assets.

In February 2020, the Company issued, pursuant to a private placement, 3,000,000 non-flow-through common shares at a price of $0.25 per share for proceeds of $750,000 and 2,275,000 flow-through common shares at a price of $0.44 per share for proceeds of $1,001,000, including a flow-through share premium of $432,250.

In February 2020, the Company issued 125,000 common shares at a price of $0.20 per share pursuant to the exercise of stock options. The Company’s common shares traded at a price of $0.32 per share on the date on which the stock options were exercised.

In March 2020, the Company issued 250,000 common shares with a fair value of $0.40 per share ($100,000 total) for the purchase of exploration and evaluation assets.

19

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

8. SHARE CAPITAL (continued)

Issued (continued)

In June 2020, the Company issued 750,100 common shares with a fair value of $0.44 per share ($330,045 total) for the purchase of exploration and evaluation assets.

In August 2020, the Company issued, pursuant to a private placement, 4,600,661 units at a price of $0.65 per unit for gross proceeds of $2,990,430. Each unit comprised one common share and one-half of one share purchase warrant. Each full warrant, in turn, entitles the holder to purchase an additional common share at a price of $0.85 until August 13, 2022. In respect of the offering, the Company paid finders’ fees totalling $105,308 and issued 162,012 finders’ warrants exercisable until August 13, 2022 at $0.85 per share and valued at $124,177.

In August 2020, the Company issued, pursuant to a private placement, 600,000 flow-through common shares at a price of $1.00 per share for gross proceeds of $600,000, including a flow-through share premium of $210,000. The Company paid a finders’ fee of $36,000 in respect of the offering.

In September 2020, the Company issued 1,600,000 common shares with a fair value of $0.71 per share ($1,136,000 total) in respect of the exercise of an option to purchase exploration and evaluation assets.

In October 2020, the Company issued, pursuant to a private placement, 160,000 units at a price of $0.65 per unit for gross proceeds of $104,000. Each unit comprised one common share and one-half of one share purchase warrant. Each full warrant, in turn, entitles the holder to purchase an additional common share at a price of $0.85 until October 16, 2022.

In November 2020, the Company issued, pursuant to a private placement, 1,476,190 flow-through common shares at a price of $1.05 per share for gross proceeds of $1,550,000, including a flow-through share premium of $324,762. The Company paid finders’ fees totalling $93,000 in respect of the offering.

Share purchase warrants

The continuity of warrants during the period is as follows:

	January 31,	2021	April 30,	2020
		Weighted		Weighted
		Average		Average
	Number of	Exercise	Number of	Exercise
	Warrants	Price	Warrants	Price
Balance, beginning of period	-	$ -	50,000	$ 0.20
Issued	2,542,341	0.85	-	-
Expired	-	-	(50,000)	(0.20)
Balance,end ofperiod	2,542,341	$0.85	-	$-

20

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

8. SHARE CAPITAL (continued)

Share purchase warrants (continued)

A summary of share purchase warrants outstanding is as follows:

		Number of Warrants	Number of Warrants
		Outstanding and Exercisable
Exercise Price Per Share	Expiry Date	January 31, 2021	April 30,	2020
$0.85	August 13, 2022	2,462,341		-
$0.85	October 16, 2022	80,000		-
Balance,end ofperiod		2,542,341		-

Share-based payments

The Company has an equity-settled stock option plan under which the Board of Directors may grant options to directors, officers, other employees and consultants. The purpose of the plan is to advance the interests of the Company by encouraging these individuals to acquire shares in the Company and thereby remain associated with, and seek to maximize the value of, the Company.

Under the plan, the number of shares reserved for issuance pursuant to the exercise of all options under the plan may not exceed 10% of the issued and outstanding common shares on a non-diluted basis from time to time. The options expire not more than 10 years from the date of grant or earlier if the individual ceases to be associated with the Company, and vest over terms determined at the time of grant.

The Company granted stock options in October 2020 to six optionees to purchase up to 1,800,000 shares of the Company at a price of $0.75 per share until October 9, 2025. The Company granted no stock options during the nine-month period ended January 31, 2020.

The fair value of stock options issued during the nine-month periods ended January 31, 2021 and 2020 was estimated using the Black-Scholes option valuation model with the following assumptions:

	Total or Weighted	Average
	2021	2020
Number of options	1,800,000	-
Number of options vested	1,800,000	-
Estimated life	5 years	-
Share price at date of vesting	$ 0.71	-
Option exercise price	$ 0.75	-
Risk-free interest rate	0.38%	-
Estimated annual volatility based on historical volatility	196%	-
Expected dividends	-	-
Option fair value	$ 0.69	-
Compensation cost	$1,241,078	-

21

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

8. SHARE CAPITAL (continued)

Share-based payments (continued)

A summary of the Company’s outstanding and exercisable stock options as of January 31, 2021 and April 30, 2020, and the changes for the periods ending on those dates is as follows:

	January 31, 2021 April 30, 2020
	Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Life (Years) Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Life (Years)
Balance, beginning of period Granted Exercised Expired	375,000 $ 0.20 2.1 712,500 $ 0.20 2.8 1,800,000 0.75 - - - - (125,000) (0.20) (125,000) (0.20) (212,500) (0.20)
Balance,end ofperiod	2,050,000 $ 0.68 4.2 375,000 $ 0.20 2.1

A summary of stock options outstanding is as follows:

		Number of Stock Options	Number of Stock Options
		Outstanding and Exercisable
Exercise Price Per Share	Expiry Date	January 31, 2021	April	30,	2020
$0.20	June 9, 2022	250,000		375,000
$0.75	October 9, 2025	1,800,000			-
		2,050,000		375,000

9. RELATED PARTY TRANSACTIONS AND BALANCES

Management transactions

The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs for key management personnel for the nine-month periods ended January 31, 2021 and 2020 are as follows:

and 2020 are as follows:
	2021	2020
Management fees paid to a corporation controlled by the Company’s
Chief Executive Officer	$ 56,000	$ -
Management fees paid to the Company’s former Chief Executive Officer	19,000	22,500
Management fees paid to a corporation controlled by the Company’s
Chief Financial Officer	98,275	38,752
Consulting fees paid to a director	7,000	-
Fair value of stock options to purchase 1,500,000 shares of the Company
at $0.75 per share to two officers and three directors	1,034,232	-
	$1,214,507	$61,252

Due to related parties

As of January 31, 2021, no amounts were owed to directors and officers of the Company in the ordinary course of business (April 30, 2020 – $20,889). The amounts due to related parties were non-interest bearing, unsecured and due on demand.

22

Great Thunder Gold Corp.

(An exploration stage company)

Notes to the Condensed Interim Financial Statements

(Unaudited) January 31, 2021 and 2020

10. FINANCIAL INSTRUMENTS

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk and market risk.

Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company’s maximum exposure to credit risk is the carrying value of its financial assets. In the opinion of management, none of the Company’s financial assets were exposed to significant credit risk as of January 31, 2021 or April 30, 2020.

Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by operations and anticipated investing and financing activities. The Company had cash as of January 31, 2021 in the amount of $4,546,909 (April 30, 2020 – $1,608,454) in order to meet short-term business requirements. As of January 31, 2021, the Company had current liabilities of $870,806 (April 30, 2020 – $483,705). Accounts payable have contractual maturities of approximately 30 days or are due on demand and are subject to normal trade terms and amounts due to related parties are without stated terms of interest or repayment (see note 1 – Nature of Operations and Going Concern).

Market Risk

Market risk consists of interest rate risk, foreign currency risk and other price risk. These are discussed further below.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Interest rate risk has two components:

• a) To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.

• b) To the extent that changes in prevailing market rates differ from the interest rate in the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

The Company’s cash is currently held on deposit at a major bank. Management considers the interest rate risk to be minimal.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is not exposed to material foreign currency risk.

Other Price Risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk. The Company is exposed to other price risk with respect to its investments as they are carried at fair value based on quoted market prices. Based on the investments balance as of January 31, 2021, a 10% change in share price would have affected the Company’s loss for the period by approximately $382.

23

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements

(Unaudited) January 31, 2021 and 2020

10. FINANCIAL INSTRUMENTS (continued)

Fair Value of Financial Instruments

IFRS 7 – Financial Instruments: Disclosures – establishes a fair value hierarchy that prioritizes the input to valuation techniques used to measure fair value as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

• Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value of the Company’s cash and investments, other than those carried at cost, is categorized as Level 1 in the Fair Value Hierarchy. The fair value of the Company’s accounts payable and accrued liabilities and amounts due to related parties approximates their carrying values because of the short-term or ondemand nature, as applicable, of these instruments.

11. CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue the exploration and development of its exploration and evaluation assets, and to maintain a flexible capital structure for its projects for the benefit of its stakeholders. In the management of capital, the Company includes the components of shareholders’ equity.

The Company manages the capital structure and adjusts it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue new shares or adjust the amount of cash. Management reviews the capital structure on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

As of January 31, 2021, the Company had $8,866,151 of capital (April 30, 2020 – $3,736,672), an increase in capital of $5,129,479 during the nine-month period ended January 31, 2021 (2020 – $219,822).

The Company is not subject to any externally imposed capital requirements.

12. COMMITMENTS

The Company entered into a consulting agreement in July 2020 with a corporation controlled by its Chief Executive Officer whereby that corporation will provide consulting services for a fee of $8,000 per month. Severance fees of $192,000 are payable by the Company upon a change of control of, or termination without cause by, the Company.

The Company entered into a consulting agreement in February 2013 with a corporation controlled by its Chief Financial Officer whereby that corporation will provide consulting services at its standard hourly rates. The agreement may be terminated by the Company without cause upon payment of three months of fees as severance.

24

Great Thunder Gold Corp. (An exploration stage company) Notes to the Condensed Interim Financial Statements (Unaudited) January 31, 2021 and 2020

12. COMMITMENTS (continued)

Pursuant to the terms of flow-through share agreements effective February 28, 2020, August 21, 2020 and November 20, 2020, the Company agreed to incur qualifying resource expenditures of not less than $3,151,000 by December 31, 2021 and renounce these expenditures to the shareholders. As of January 31, 2021, the Company has an unspent flow-through commitment of $2,884,208 (2020 – nil).

13. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of bank balances and short-term deposits with banks. Cash and cash equivalents included in the Condensed Interim Statements of Cash Flows comprise the following amounts:

		2021		2020
Bank balances	$	1,593,528	$	13,176
Short term deposits restricted for exploration		2,953,381		-
Balance,end ofperiod	$	4,546,909	$	13,176

14. NON-CASH TRANSACTIONS

During the nine-month period ended January 31, 2021, the Company issued 2,350,100 shares with a fair value of $1,466,045 in respect of the purchase of exploration and evaluation assets, and issued warrants to purchase up to 162,012 shares at a price of $0.85 per share valued at $124,177 as finders’ fees in respect of a private placement. In addition, options to purchase up to 125,000 shares at a price of $0.20 per share valued at $29,263 expired unexercised.

During the nine-month period ended January 31, 2020, warrants to purchase up to 50,000 shares at a price of $0.20 per share and options to purchase up to 212,500 shares at a price of $0.20 per share valued at $36,951 expired unexercised, and the Company issued 5,942,981 shares with a fair value of $0.08 per share in settlement of $356,579 of debts.

25