NGEx Minerals — Interim / Quarterly Report 2021

Aug 27, 2021

NGEx Minerals Ltd. Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian Dollars) (Unaudited)

		June 30,	December 31,
	Note	2021	2020
ASSETS
Current assets:
Cash		$ 469,264	$ 898,818
Receivables and other assets	4	407,206	241,367
		876,470	1,140,185
Non-current assets:
Receivables and other assets	4	350,440	105,950
Equipment		24,531	26,314
Mineral properties	5	4,035,444	4,105,871
		4,410,415	4,238,135
TOTAL ASSETS		5,286,885	5,378,320
LIABILITIES
Current liabilities:
Trade payables and accrued liabilities		831,099	590,516
Amounts owing pursuant to credit facility	6	1,184,298	-
		2,015,397	590,516
Non-current liabilities:
Due to exploration partner	7	336,792	345,977
TOTAL LIABILITIES		2,352,189	936,493
SHAREHOLDERS’ EQUITY
Share capital		43,089,442	43,053,810
Contributed surplus		1,316,843	1,058,841
Deficit		(39,362,924)	(37,786,415)
Accumulated other comprehensive loss		(2,108,665)	(1,884,409)
TOTAL SHAREHOLDERS’ EQUITY		2,934,696	4,441,827
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY		$5,286,885	$5,378,320
Nature of Operations and Liquidity Risk (Note 1)
Commitments (Note 4)

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

On behalf of the Board:

/s/William A. Rand /s/Wojtek A. Wodzicki Director Director

NGEx Minerals Ltd. Condensed Interim Consolidated Statements of Comprehensive Loss (Expressed in Canadian Dollars) (Unaudited)

Expressed in Canadian Dollars) Unaudited)
		Three months ended		Six months ended
			June 30,		June 30,
	Note	2021	2020	2021	2020
Expenses
Exploration and project investigation	10	$ 355,845	$ 483,715	$ 757,513	$ 2,350,571
General and administration:
Salaries and benefits		207,640	163,550	407,940	341,994
Share-based compensation	9c	110,156	85,942	220,320	171,888
Management fees		32,160	32,625	64,320	65,250
Professional fees		48,556	47,547	91,532	79,396
Travel		4,585	-	4,585	6,912
Promotion and public relations		2,245	2,689	7,769	29,440
Office and general		48,386	13,107	88,708	56,010
Operating loss		809,573	829,175	1,642,687	3,101,461
Other expenses (income)
Financing costs		29,719	6,845	41,050	13,355
Foreign exchange loss (gain)		(2,560)	(11,811)	(7,718)	2,605
Net monetary loss (gain)	3	(852)	(6,116)	(4,649)	17,588
Other expenses (recoveries)		(59)	24,656	(59)	24,656
Gain on use of marketable securities,
net	13	(52,122)	-	(94,802)	(246,882)
Net loss		783,699	842,749	1,576,509	2,912,783
Other comprehensive loss
Items that may be reclassified
subsequently to net loss:
Foreign currency translation
adjustment		100,905	(13,581)	214,694	227,937
Impact of hyperinflation	3	694	178,965	9,562	72,885
Comprehensive loss		$885,298	$1,008,133	$1,800,765	$3,213,605
Basic and diluted loss per
common share		$ 0.01	$ 0.01	$ 0.01	$ 0.02
Weighted average common shares
outstanding		124,843,345	124,793,652	124,828,360	124,793,652

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

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NGEx Minerals Ltd. Condensed Interim Consolidated Statements of Cash Flows (Expressed in Canadian Dollars) (Unaudited)

Expressed in Canadian Dollars) Unaudited)
			Six	months ended
					June 30,
	Note		2021		2020
Cash flows used in operating activities
Net loss for the period		$	(1,576,509)	$	(2,912,783)
Adjustments to reconcile net loss to net operating
cash flows:
Depreciation			3,772		3,798
Share-based compensation	9c		258,002		209,613
Finance costs			41,050		13,355
Foreign exchange loss (gain)			(14,745)		14,554
Net monetary loss			3,234		44,790
Net changes in working capital and other items:
Receivables and other			(427,876)		65,251
Trade payables and accrued liabilities			280,683		(237,521)
			(1,432,389)		(2,798,943)
Cash flows from (for) financing activities
Drawdown of credit facility			1,182,990		-
Payments made on behalf of exploration partner			(13,884)		(13,355)
			1,169,106		(13,355)
Cash flows used in investing activities
Mineral properties and related expenditures	6		(121,830)		(133,558)
			(121,830)		(133,558)
Effect of exchange rate change on cash			(44,441)		(140,222)
Decrease in cash during the period			(429,554)		(3,086,078)
Cash, beginning of the period			$ 898,818	$	5,559,454
Cash, end of the period			$ 469,264	$	2,473,376

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

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NGEx Minerals Ltd. Condensed Interim Consolidated Statements of Changes in Equity (Expressed in Canadian Dollars) (Unaudited)

						Accumulated
						Other	Total
		Number of		Contributed		Comprehensive	Shareholders’
	Note	Shares	Share Capital	Surplus	Deficit	Loss	Equity
Balance, January 1, 2020		124,793,652	$ 43,053,810	$ 419,228	$ (31,893,537)	$ (1,767,396)	$ 9,812,105
Share-based compensation		-	-	209,613	-	-	209,613
Net loss and other comprehensive loss		-	-	-	(2,912,783)	(300,822)	(3,213,605)
Balance, June 30, 2020		124,793,652	$ 43,053,810	$ 628,841	$ (34,806,320)	$(2,068,218)	$ 6,808,113
Balance, January 1, 2021		124,793,652	$ 43,053,810	$ 1,058,841	$ (37,786,415)	$ (1,884,409)	$ 4,441,827
Share-based compensation	9c	-	-	258,002	-	-	258,002
Shares issued pursuant to credit facility	6	57,952	35,632	-	-	-	35,632
Net loss and other comprehensive loss		-	-	-	(1,576,509)	(224,256)	(1,800,765)
Balance, June 30, 2021		124,851,604	$ 43,089,442	$ 1,316,843	$ (39,362,924)	$(2,108,665)	$ 2,934,696

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

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

1. NATURE OF OPERATIONS AND LIQUIDITY RISK

NGEx Minerals Ltd. (the “Company” or “NGEx Minerals”) was incorporated on February 21, 2019 under the laws of the Canada Business Corporations Act in connection with a plan of arrangement to reorganize Josemaria Resources Inc. (“Josemaria”), which was completed on July 17, 2019 (the “Josemaria Arrangement”).

The Company’s principal business activities are the acquisition, exploration and development of mineral properties located in South America. The Company’s registered office is located at Suite 2000, 885 West Georgia Street, Vancouver, British Columbia, V6C 3E8, Canada. The Company’s common shares trade on the TSX Venture Exchange (the "TSXV") under the symbol "NGEX".

While these condensed interim consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, which assumes that it will be able to meet its existing obligations and commitments and fund ongoing operations in the normal course of business for at least twelve months from June 30, 2021, the Company anticipates the need for further funding to settle its current liabilities, support ongoing operations, and advance its South American exploration projects, as appropriate. The Company is currently evaluating potential additional sources of financing. Historically, including the period prior to the completion of the Josemaria Arrangement, capital requirements have been primarily funded through equity financing, joint ventures, disposition of mineral properties and investments, and the use of short-term credit facilities extended by its major shareholders, such as Zebra Holdings and Investments S.à.r.l. (“Zebra”) and Lorito Holdings S.à.r.l. (“Lorito”). Zebra and Lorito are companies controlled by a trust settled by the late Adolf H. Lundin. Zebra and Lorito report their respective security holdings in the Company as joint actors, as the term is defined by Canadian securities regulations, and are related parties by virtue of their combined shareholding in the Company in excess of 20%. In February 2021, the Company obtained an unsecured US$3.0 million credit facility from Zebra and Lorito (see Note 6).

While management is confident that additional sources of funding will be secured to fund planned expenditures for at least twelve months from June 30, 2021, including funds required to repay amounts drawn against the credit facility extended by Zebra and Lorito which matures in February 2022 (see Note 6), factors that could affect the availability of financing include the progress and results of ongoing exploration at the Company’s mineral properties, the state of international debt and equity markets, as may be impacted by developments with respect to the ongoing COVID-19 pandemic, and investor perceptions and expectations of the global copper, gold, and/or silver markets. There can be no assurance that such financing will be available in the amount required at any time or for any period or, if available, that it can be obtained on terms satisfactory to the Company. If necessary, the Company may defer or forego discretionary expenditures, explore opportunities to revise the due dates of its liabilities, negotiate deferrals on upcoming lump sum payments with respect to the Company’s mineral properties, and/or settle its liabilities through the issuance of the common shares and other equity instruments. Based on the actual deployment of the Company’s current working capital and the amount of funding raised, if any, the Company’s planned initiatives and other work programs may be postponed, or otherwise revised, as necessary.

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

2. BASIS OF PRESENTATION

These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), applicable to the preparation of interim financial statements, including IAS 34, Interim Financing Reporting. Accordingly, certain disclosures included in the annual financial statements prepared in accordance with IFRS have been condensed or omitted, and these condensed interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2020. In preparation of these condensed interim consolidated financial statements, the Company has consistently applied the same accounting policies as disclosed in Note 3 to the audited consolidated financial statements for the year ended December 31, 2020.

These condensed interim consolidated financial statements were authorized for issuance by the Board of Directors of the Company on August 26, 2021.

3. HYPERINFLATION

Argentina was designated a hyperinflationary economy as of July 1, 2018 for accounting purposes.

Accordingly, the application of hyperinflation accounting has been applied to the Company’s Argentine subsidiaries’ non-monetary assets and liabilities, shareholders’ equity and comprehensive loss items from the transaction date when they were first recognized into the current purchasing power, which reflects a price index current at the end of the reporting period before being included in the consolidated financial statements. To measure the impact of inflation on its financial position and results, the Company has elected to use the Wholesale Price Index (Indice de Precios Mayoristas or ”IPIM”) for periods up to December 31, 2016, and the Retail Price Index (Indice de Precios al Consumidor or “IPC”) thereafter. These price indices have been recommended by the Government Board of the Argentine Federation of Professional Councils of Economic Sciences.

As the consolidated financial statements of the Company have been previously presented in Canadian dollars, a stable currency, the comparative period amounts do not require restatement.

The Company recognized losses of $694 and $9,562, respectively, for the three and six months ended June 30, 2021 (2020: gain of $178,965 and $72,885) in relation to the impact of hyperinflation within other comprehensive income, which is primarily the result of devaluation of the Argentine peso relative to the Canadian dollar during the period.

As a result of changes in the IPC and changes to the Company’s net monetary position during the three and six months ended June 30, 2021, the Company recognized net monetary gains of $852 and $4,649, respectively (2020: gain of $6,116 and loss of $17,588, respectively) to adjust transactions recorded during the period into a measuring unit current as of June 30, 2021.

The level of the IPC at June 30, 2021 was 483.6 (December 31, 2020: 385.9), which represents an increase of approximately 25% over the IPC at December 31, 2020, and an approximate 15% increase over the average level of the IPC during the six months ended June 30, 2021.

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

4. RECEIVABLES AND OTHER ASSETS

	June 30,	December 31,
	2021	2020
Current
Taxes receivable	26,712	62,297
Other receivables	57,755	41,175
Other prepaid expenses and deposits	322,739	137,895
	407,206	241,367
Non-current
Taxes receivable	90,631	105,950
Deferred surface access rights	259,809
	350,440	105,950

Deferred Surface Access Rights

Historically, the Company has had a contractual agreement with the owners of the surface rights covering the Los Helados properties, which gave the Company access over these surface rights for exploration, development, and mining through to closure of any mining operation, in exchange for certain payments which are linked to project activities and certain development milestones (the “Original Surface Access Agreement”). The Original Surface Access Agreement provided for minimum annual payments of US$0.5 million which covered basic access to the property and minimal surface disturbance such as road maintenance.

On January 26, 2021, the Original Surface Access Agreement was mutually terminated by the Company and the holders of the surface rights and replaced with an interim surface access agreement with an effective period of three years (the “Interim Surface Access Agreement”). The Interim Surface Access Agreement reduces the Company’s payments to the holders of the surface rights to coincide with the current, reduced level of activities at Los Helados properties. As a result, the payments by the Company to the holders of the surface rights have been reduced, with US$200,000 paid upon execution and another US$200,000 to be paid in January 2022. In return, during the effective period of the Interim Surface Access Agreement, the Company is permitted to access the surface rights for conducting environmental data collection, site visits, and general maintenance of the Los Helados properties, but prohibits the undertaking of programs for the purposes of exploration or development.

Accordingly, as at June 30, 2021, the payment of US$200,000 due in January 2022 has been recognized within trade payables and accrued liabilities as a contractual commitment. As at June 30, 2021, this contractual liability had a Canadian dollar equivalent of approximately $247,880.

As the payments related to the Interim Surface Access Agreement provide the Company the benefit of access for a period of three years ending January 2024, the pro rata portion relating to the 12 months ending June 30, 2022 have been classified as a current asset, whereas all other amounts have been classified as non-current.

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

Non-current Taxes Receivable

Pursuant to local regulations, the Company is entitled to a refund of certain value added taxes (“VAT”) paid in Argentina. While the Company continues to expect full payment of the amounts claimed, the timing of receipt of the refunds has become increasingly uncertain due to ongoing delays which have now exceed the Company’s prior expectations and experiences. Accordingly, the corresponding taxes receivable balance has been classified as non-current.

5. MINERAL PROPERTIES

	Los Helados	Nacimientos
	Project	Properties	Total
January 1, 2020	$ 3,924,374	$ 840,831	$ 4,765,205
Additions	133,558	-	133,558
Write down		(827,343)	(827,343)
Effect of foreign currency translation	47,939	-	47,939
Adjustments for impacts of hyperinflation	-	(13,488)	(13,488)
December 31, 2020	$ 4,105,871	$ -	$ 4,105,871
Additions	121,830	-	121,830
Effect of foreign currency translation	(192,257)	-	(192,257)
June 30, 2021	$ 4,035,444	$-	$ 4,035,444

Los Helados Project

The Company’s primary mineral property assets are the Los Helados properties and the La Rioja properties (together, the “Los Helados Project”), which are comprised of adjacent mineral titles in Region III, Chile, and the San Juan Province in Argentina.

The Company is the majority partner and operator of the Los Helados Project, which is subject to a Joint Exploration Agreement (“JEA”) with its exploration partner, Nippon Caserones Resources Co. Ltd. (“NCR”). NCR became the Company’s partner on April 1, 2020 when Pan Pacific Copper Co. Ltd. transferred its interest in the Los Helados Project to NCR, a subsidiary of JX Nippon Mining and Metals Corporation, a Tokyo-based mining and smelting company that also owns the Caserones Mine, located approximately 12 kilometres from the Los Helados properties.

The Company holds an approximate 64% interest in the underlying Los Helados properties, which are located in Region III, Chile, and a 60% interest in the La Rioja properties, located in the adjacent San Juan Province in Argentina.

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

The Company has been funding and accounting for 100% of the expenditures related to the Los Helados Project following the election by the exploration partner pursuant to the JEA not to fund its share of expenditures since September 1, 2015. The sole funding of expenditures at the Los Helados Project has resulted in dilution of NCR’s interest, and corresponding increases to the Company’s interest, resulting in the amounts noted in the preceding paragraph. Valle Ancho Properties

On August 29, 2019, the Company entered into an option agreement with the Province of Catamarca, Argentina to earn a 100% interest in the Valle Ancho, Interceptor, and Filo del las Vicunas properties (collectively, the “Valle Ancho Properties”), located in Catamarca, Argentina, by making US$8.2 million in expenditures on the Valle Ancho Properties over a two-year period. In August 2020, the option period for Valle Ancho was extended from August 2021 to December 2022.

6. CREDIT FACILITY

On February 19, 2021, the Company obtained an unsecured US$3.0 million credit facility (the “2021 Facility”) from Zebra and Lorito to provide financial flexibility to fund ongoing exploration and for general corporate purposes.

As consideration for the 2021 Facility, Zebra and Lorito received 40,000 common shares upon execution thereof (the “Commitment Shares”) and shall receive an additional 600 common shares each month, for every US$50,000 in principal outstanding, prorated accordingly for the number of days outstanding. The 2021 Facility matures on February 19, 2022, and no interest is payable in cash during its term.

As at June 30, 2021, a total of US$950,000 has been drawn and remained outstanding against the 2021 Facility. During the six months ended June 30, 2021, 57,952 common shares were issued to Zebra and Lorito in connection with the facility, with an additional 10,100 common shares issuable. During the three and six months ended June 30, 2021, the Company has recognized $22,876 and $27,166, respectively, (2020: $nil) in financing costs through the consolidated statement of comprehensive loss. In addition, $15,334 has been deferred within prepaid expenses and other deposits as at June 30, 2021 as it relates to a portion of the Commitment Shares.

All common shares issued in conjunction with the facilities are subject to a four-month hold period under applicable securities laws.

7. DUE TO EXPLORATION PARTNER

Pursuant to the Josemaria Arrangement, the Company assumed from Josemaria an obligation to fund a partner’s share of exploration expenditures related to the La Rioja properties (the “Obligation”). In accordance with the terms of the JEA between the Company and the partner, NCR, the Company has elected to settle the Obligation through funding NCR’s share of exploration expenditures, which remained US$3.4 million as at June 30, 2021, and has no defined timeline for settlement.

The Company considered the estimated timeframe required to expend the remaining US$3.4 million on behalf of NCR at the La Rioja properties and has presented the remaining obligation as a non-current liability, discounted to its present value at an annual effective rate of 8%.

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

8. SHARE CAPITAL

The Company has authorized an unlimited number of voting common shares without par value.

9. SHARE OPTIONS

a) Share option plan

The Company has a share option plan adopted by the Board of Directors on May 7, 2019, which reserves an aggregate of 10% of the issued and outstanding shares of the Company for issuance upon the exercise of options granted. The granting, vesting and terms of the share options are at the discretion of the Board of Directors.

b) Share options outstanding

Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:

prices are as follows:
	Number of	Weighted
	shares issuable	average
	pursuant to	exercise price
	share options	per share
Balance at January 1, 2020	6,657,500	$ 0.64
Options granted	2,660,000	0.54
Expired	(1,182,500)	0.89
Balance at December 31, 2020	8,135,000	$ 0.57
Expired	(1,002,500)	0.84
June 30, 2021	7,132,500	$ 0.53

The following table details the share options outstanding and exercisable as at June 30, 2021:

Exercise prices $0.475 $0.54 $0.68	Outstanding options Options outstanding Weighted average remaining contractual life (Years) Weighted average exercise price 3,445,000 3.24 $0.475 2,660,000 4.42 $0.54 1,027,500 2.66 $0.68 7,132,500 3.60 $0.53	Exercisable options
		Options exercisable Weighted average remaining contractual life (Years) Weighted average exercise price
		2,296,668 3.24 $0.475 886,667 4.42 $0.54 1,027,500 2.66 $0.68 4,261,835 3.35 $0.54

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

c) Share-based compensation

	Three	months ended	Six	months ended
		June 30,		June 30,
	2021	2020	2021	2020
Exploration and project investigation	18,840	18,862	37,682	37,725
General and administration	110,156	85,942	220,320	171,888
	128,996	104,804	258,002	209,613

10. EXPLORATION AND PROJECT INVESTIGATION

Due to the geographic location of the Company’s current mineral property interests, the Company’s business activities generally fluctuate with the seasons, with increased exploration activities during the summer months in South America. As a result, a general recurring trend is the increase in exploration expenditures, and therefore net losses, for the fourth quarter and first quarter of a fiscal year, relative to the second and third quarters.

The Company expensed the following exploration and project investigation costs for the three and six months ended June 30, 2021 and 2020:

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

Three months ended June 30,	Los Helados Project Nacimientos Properties Valle Ancho Other Total
2021 2020	Land holding and access costs 82,087 - 6 6,162 88,255 Fuel, camp costs and field supplies 18,089 - 870 - 18,959 Roadwork, travel and transport 3,463 - 1,855 5 5,323 Consultants, geochemistry and geophysics 1,151 - - 30,825 31,976 Environmental and community relations 9,319 - 1,469 - 10,788 VAT and other taxes 5,607 - 15,719 2,599 23,925 Office, field and administrative salaries, overhead and other administrative costs 36,525 - 109,975 11,279 157,779 Share-based compensation 8,784 - 7,243 2,813 18,840
	Total 165,025 - 137,137 53,683 355,845
	Land holding and access costs 7,639 23 - 6,719 14,381 Fuel, camp costs and field supplies 10,909 5,998 5,619 - 22,526 Roadwork, travel and transport 7,139 3,007 4,704 12 14,862 Engineering and conceptual studies 26,517 - - - 26,517 Consultants, geochemistry and geophysics 31 - 39,560 40,625 80,216 Environmental and community relations 11,183 - 16,329 - 27,512 VAT and other taxes 3,243 6,506 32,977 1,755 44,481 Office, field and administrative salaries, overhead and other administrative costs 45,280 21,605 165,117 2,356 234,358 Share-based compensation 6,577 707 10,377 1,201 18,862 Total 118,518 37,846 274,683 52,668 483,715

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

Six months ended June 30,	Los Helados Project Nacimientos Properties Valle Ancho Other Total
2021 2020	Land holding and access costs 141,381 - 6 14,202 155,589 Fuel, camp costs and field supplies 61,797 - 1,574 21 63,392 Roadwork, travel and transport 11,934 - 6,143 8 18,085 Consultants, geochemistry and geophysics 7,290 - 13,339 56,200 76,829 Environmental and community relations 19,020 - 1,790 - 20,810 VAT and other taxes 18,324 - 35,905 6,326 60,555 Office, field and administrative salaries, overhead and other administrative costs 89,673 - 212,798 22,100 324,571 Share-based compensation 18,292 - 14,215 5,175 37,682
	Total 367,711 - 285,770 104,032 757,513
	Land holding and access costs 675,603 3,297 9,481 16,830 705,211 Fuel, camp costs and field supplies 22,985 10,453 114,425 44 147,907 Roadwork, travel and transport 18,318 3,023 142,791 34 164,166 Engineering and conceptual studies 26,517 - - - 26,517 Consultants, geochemistry and geophysics 8,857 - 378,280 83,185 470,322 Environmental and community relations 19,126 - 27,219 - 46,345 VAT and other taxes 14,090 8,671 193,934 5,862 222,557 Office, field and administrative salaries, overhead and other administrative costs 104,883 28,257 392,099 4,582 529,821 Share-based compensation 14,523 876 20,523 1,803 37,725 Total 904,902 54,577 1,278,752 112,340 2,350,571

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

11. RELATED PARTY TRANSACTIONS

Under the normal course of operations, the Company may undertake transactions or hold balances with related parties. Other than those related party transactions identified elsewhere in these condensed interim consolidated financial statements, the Company also engages with Josemaria and Filo Mining Corp. (“Filo Mining”), related parties by way of directors, officers and shareholders in common, and MOAR Consulting Inc. (“MOAR”), an exploration consulting firm, of which a director of the Company is the president.

a) Related party services

The Company has a cost sharing arrangement with Josemaria and Filo Mining. Under the terms of this arrangement, the Company may, from time to time, provide management, technical, administrative and/or financial services (collectively, “Management Services”) to Josemaria and Filo Mining, and vice versa. In addition, the Company engages MOAR, to provide exploration consultation. These transactions were incurred in the normal course of operations, and are summarized as follows:

	Three months ended	Three months ended	Six months ended	Six months ended
		June 30,		June 30,
	2021	2020	2021	2020
Management Services to Josemaria	15,641	47,183	30,174	88,287
Management Services to Filo Mining	206,719	101,950	341,023	257,342
Management Services from Josemaria	(18,867)	(51,438)	(40,652)	(93,597)
Management Services from Filo Mining	(94,230)	(112,978)	(183,699)	(245,369)
Exploration Consultation from MOAR	(11,250)	(40,625)	(35,625)	(78,750)

b) Related party balances

The amounts due from (to) related parties, and the components of the consolidated statements of financial position in which they are included, are as follows:

		June 30,	December 31,
	Related Party	2021	2020
Receivables and other assets	Josemaria	15,888	-
Receivables and other assets	Filo Mining	5,806	5,850
Accounts payable and accrued liabilities	Josemaria	(2,339)	-
Accounts payable and accrued liabilities	Filo Mining	(7,590)	(11,752)
Accounts payable and accrued liabilities	MOAR	-	(14,125)

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

c) Key management compensation

The Company’s key management personnel have the authority and responsibility for overseeing, planning, directing and controlling its activities and consist of the Board of Directors and members of the executive management team. Total compensation expense for key management personnel, and the composition thereof, is as follows:

	Three	months ended	Six	months ended
		June 30,		June 30,
	2021	2020	2021	2020
Salaries and other payments	118,500	89,500	237,000	208,000
Short-term employee benefits	3,279	3,573	6,846	8,249
Directors fees	20,500	20,500	41,000	41,000
Stock-based compensation	105,176	82,140	210,359	164,282
	247,455	195,713	495,205	421,531

12. SEGMENTED INFORMATION

The Company is principally engaged in the acquisition, exploration and development of mineral properties in South America. The information regarding mineral properties and exploration and project investigation costs presented in Notes 5 and 10, respectively, represent the manner in which management reviews its business performance. Materially all of the Company’s mineral properties and exploration and project investigation costs relate to South America, particularly Chile and Argentina. The net gains on the use of marketable securities are allocated to the Nacimientos and Valle Ancho Projects, as they are the result of funding provided to the Company’s Argentine subsidiary in support of these projects. Materially all of the Company’s administrative costs are incurred by the Canadian parent, where materially all of the Company’s cash is held in the normal course of business until it is required to be deployed to the Company’s South American subsidiaries in support of ongoing and planned work programs.

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

The following are summaries of the Company’s current and non-current assets, current liabilities, and net losses by segment:

	Los Helados Project Valle Ancho Corporate Total
As at June 30, 2021	Current assets 354,843 152,343 369,284 876,470 Non-current receivables and other assets 259,809 90,631 - 350,440 Equipment - 24,531 - 24,531 Mineral properties 4,035,444 - - 4,035,444
	Total assets 4,650,096 267,505 369,284 5,286,885 Current liabilities 294,235 208,424 1,512,738 2,015,397 Due to exploration partner - - 336,792 336,792
	Total liabilities 294,235 208,424 1,849,530 2,352,189
	Los Helados Project Nacimientos & Valle Ancho Corporate Total
As at December 31, 2020	Current assets 128,924 201,442 809,819 1,140,185 Non-current receivables and other assets - 105,950 - 105,950 Equipment - 26,314 - 26,314 Mineral properties 4,105,871 - - 4,105,871
	Total assets 4,234,795 333,706 809,819 5,378,320 Current liabilities 67,847 222,337 300,332 590,516 Due to exploration partner - - 345,977 345,977
	Total liabilities 67,847 222,337 646,309 936,493

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

Three months ended June 30,	Los Helados Project Valle Ancho Corporate Other Total
2021 2020	Exploration and project investigation 165,025 137,137 - 53,683 355,845 Gain on use of marketable securities - (52,122) - - (52,122) General and administration and other items 24,066 6,544 449,366 - 479,976
	Netloss 189,091 91,559 449,366 53,683 783,699
	Los Helados Project Nacimientos & Valle Ancho Corporate Other Total
	Exploration and project investigation 118,518 312,529 - 52,668 483,715 General and administration and other items 22,000 23,751 313,283 - 359,034
	Netloss 140,518 336,280 313,283 52,668 842,749

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

Six months ended June 30,	Los Helados Project Valle Ancho Corporate Other Total
2021 2020	Exploration and project investigation 367,711 285,770 - 104,032 757,513 Gain on use of marketable securities - (94,802) - - (94,802) General and administration and other items 41,880 3,714 868,204 - 913,798
	Netloss 409,591 194,682 868,204 104,032 1,576,509
	Los Helados Project Nacimientos & Valle Ancho Corporate Other Total
	Exploration and project investigation 904,902 1,333,329 - 112,340 2,350,571 Gain on use of marketable securities - (246,882) - - (246,882) General and administration and other items 40,076 48,296 720,722 - 809,094
	Net loss 944,978 1,134,743 720,722 112,340 2,912,783

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NGEx Minerals Ltd. Notes to the Condensed Interim Consolidated Financial Statements For the three and six months ended June 30, 2021 and 2020 (Expressed in Canadian Dollars, unless otherwise stated) (Unaudited)

13. USE OF MARKETABLE SECURITIES

From time to time, the Company may acquire and transfer marketable securities to facilitate intragroup funding transfers between the Canadian parent and its Argentine operating subsidiaries.

The Company does not acquire marketable securities or engage in these transactions for speculative purposes. In this regard, under this strategy, the Company generally uses marketable securities of large and well established companies, with high trading volumes and low volatility. Nonetheless, as the process to acquire, transfer and ultimately sell the marketable securities occurs over several days, some fluctuations are unavoidable.

As the marketable securities are acquired with the intention of a near term sale, they are considered financial instruments that are held for trading, all changes in the fair value of the instruments, between acquisition and disposition, are recognized through profit or loss.

As a result of having utilized this mechanism for intragroup funding for the three and six months ended June 30, 2021, the Company realized net gains of $52,122 and $94,802, respectively, (2020: $nil and $246,882). For the three months ended June 30, 2021, the net gain was comprised of a favorable foreign currency impact of $64,067 (2020: $nil) and a trading loss of $11,946 (2020: $nil). For the six months ended June 30, 2021, the net gain was comprised of a favorable foreign currency impact of $115,279 (2020: $192,213) and a trading loss of $20,477 (2020: gain of $54,669).

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