Rex Resources Corp. — Interim / Quarterly Report 2024

Aug 22, 2024

Rex Resources Corp.

Condensed Interim Financial Statements

For the Nine Months Ended June 30, 2024 (unaudited)

Table of Contents

Notice of No Auditor Review of the Condensed Interim Financial Statements 3 Condensed Interim Statements of Financial Position 4 Condensed Interim Statements of Changes in Equity 5 Condensed Interim Statements of Comprehensive Loss 6 Condensed Interim Statements of Cash Flow 7 Notes to the Condensed Interim Financial Statements 8-17

NOTICE OF NO AUDITOR REVIEW OF THE CONDENSED INTERIM FINANCIAL STATEMENTS

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

The accompanying unaudited interim financial statements of the Company have been prepared by and are the responsibility of the Company’s management.

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

REX RESOURCES CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Expressed in Canadian Dollars - Unaudited)

June 30, As at Note 2024 (unaudited)	September 30, 2023 (audited)
ASSETS $ Current assets Cash 86,667 Amounts receivable 11,692 Prepaid expense 4,000	$ 32,024 15,371 -
102,359 Exploration and evaluation assets 4 495,000	47,395 275,000
TOTAL ASSETS 597,359	322,395
LIABILITIES Current liabilities Accountspayable and accrued liabilities 4,6 224,691	214,469
SHAREHOLDERS’ EQUITY Share capital 5 1,618,901 Reserves 5 326,448 Accumulated deficit (1,572,681)	1,255,601 180,048 (1,327,723)
372,668	107,926
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 597,359	322,395
Nature of operations and going concern (Note 1)

The accompanying notes are integral to these condensed interim consolidated financial statements.

Approved on Behalf of the Board of Directors on August 21, 2024

/s/ Craig Taylor /s/ Anthony Zelen Director Director

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REX RESOURCES CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in Canadian Dollars – Unaudited

	Number of Class A Common Shares Amount Reserves	Accumulated Deficit Total
Note	$ $	$ $
Balance, September 30, 2022 Net loss for theperiod	13,469,285 1,155,601 180,048 - - -	(543,606) 792,043 (130,157) (130,157)
Balance, June 30, 2023	13,469,285 1,155,601 180,048	(673,763) 661,886
Balance, September 30, 2023	14,469,285 1,255,601 180,048	(1,327,723) 107,926
Private placement funds Finders fees - cash Finders fees – broker warrants Shares issued for mineral property Stock-based compensation Net loss for theperiod	5,170,000 257,500 - - (9,200) - - (85,000) 85,000 2,500,000 200,000 - - - 61,400 - - -	- 257,500 - (9,200) - - - 200,000 - 61,400 (244,958) (244,958)
Balance, June 30, 2024	22,119,285 1,618,901 326,448	(1,572,681) 372,668

The accompanying notes are integral to these condensed interim consolidated financial statements.

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REX RESOURCES CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Expressed in Canadian Dollars - Unaudited)

Note 2024 2023 2024	2023
$ $ $ EXPENSES Consulting 6 45,000 20,000 75,000 Marketing and advertising 1,500 - 1,500 Office and administrative 3,129 6,193 20,788 Professional fees 6 29,054 24,639 58,632 Property investigation expense - - 10,940 Regulatory 5,693 5,673 16,698 Stock-based compensation expense 61,400 - 61,400	$ 27,000 - 18,048 56,278 - 28,831 -
NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD (145,776) (56,505) (244,958)	(130,157)

The accompanying notes are integral to these condensed interim consolidated financial statements.

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REX RESOURCES CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in Canadian Dollars - Unaudited)

	For the nine months	For the nine months
	ended June 30,	ended June 30,
	2024	2023
	$	$
CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES
Net loss for the period	(244,958)	(130,157)
Non-cash items:
Stock-based compensation	61,400	-
Changes in non-cash working capital items:
Amounts receivable	3,679	(10,164)
Prepaid expense	-	(42,668)
Accountspayable and accrued liabilities	10,222	(68,301)
	(169,657)	(251,290)
CASH FLOWS USED IN INVESTING ACTIVITIES
Prepaid – long term	(4,000)	9,929
Exploration and evaluation expenditures	(20,000)	(33,919)
	(24,000)	(23,990)
CASH FLOWS FINANCING ACTIVITIES
Privateplacement funds net of finder fee	248,300	-
Net (decrease) increase in cash	54,643	(275,280)
Cash, beginning of theperiod	32,024	278,881
Cash, end of theperiod	86,667	3,601
Supplemental information:
Interest paid	-	-
Income taxespaid	-	-

The accompanying notes are integral to these condensed interim consolidated financial statements.

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

1. NATURE OF OPERATIONS AND GOING CONCERN

Rex Resources Corp. (the “Company”) was incorporated under the Business Corporations Act (British Columbia) on July 29, 2020. On June 2, 2021, the Company completed its initial public offering (“IPO”) and commenced trading on the TSX Venture Exchange (“TSXV”) on June 4, 2021 under the trading symbol “OWN”. The Company is primarily engaged in mineral exploration activities in British Columbia, Canada. The head office and the principal address of the Company are located at 1570 – 505 Burrard Street, Vancouver, BC, Canada V7X 1M5.

These consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. During the nine moths ended June 30, 2024, the Company had a net loss of $244,958 (2023 - $73,652), and as of that date, an accumulated deficit of $1,572,681 (2023 - $1,327,723), had not advanced its mineral properties to commercial production, and is not able to finance day to day activities through operations. The Company’s continuation as a going concern is dependent upon results from its mineral property exploration activities, its ability to attain profitable operations, generate funds from and/or raise equity capital or borrowings sufficient to meet current and future obligations and ongoing operating losses. The Company’s business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, changes in laws, and national and international circumstances. Geopolitical events and potential economic global challenges such as the risk of the higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company’s business. These uncertainties may cast a significant doubt on the ability of the Company to continue operations as a going concern. Management intends to finance operating costs over the next twelve months with its proceeds from its initial public offering of its shares, loans from directors and companies controlled by directors and/or additional private placement of common shares. These consolidated financial statements do not include any adjustments that might result from this uncertainty. Such adjustments could be material.

2. BASIS OF PRESENTATION

Statement of compliance

The Company applies International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board (“IASB”). These unaudited condensed interim financial statements have been prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting. Accordingly, they do not include all of the information required for full annual financial statements required by IFRS as issued by the IASB. The same accounting policies and methods of computation are followed in these unaudited condensed interim financial statements as compared with the most recent annual financial statements as at and for the year ended September 30, 2023. Any subsequent changes to IFRS that are given effect in the Company’s annual financial statements for the year ending September 30, 2024 could result in the restatement of these condensed interim financial statements.

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

2. BASIS OF PRESENTATION (Continued)

Basis of consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, 1414447 B.C. Ltd. Control occurs when the Company is exposed to, or has the right to, variable returns from its involvement with an investee and has the ability to affect those returns through its power over the investee. All inter-company transactions and balances have been eliminated in the consolidated financial statement presentation. The Company owns 100% (2022 – 0%) of 1414447 B.C. Ltd., which is the registered tenure holder of the Company’s mineral interests in its Rex Property.

Significant estimates and judgments

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

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

Ability to continue as a going-concern

Management assesses the Company's ability to continue as a going concern at each reporting date, using all quantitative and qualitative information available. This assessment, by its nature, relies on estimates of future cash flows and other future events (as discussed in Note 1), whose subsequent changes could materially impact the validity of such an assessment.

Recoverability of the carrying value of exploration and evaluation assets

Assets or cash-generating units (“CGUs”) are evaluated at each reporting date to determine whether there are any indications of impairment. The Company considers both internal and external sources of information when making the assessment of whether there are indications of impairment for the Company’s exploration and evaluation assets.

Significant judgment is required when determining whether facts and circumstances suggest that the carrying amount of exploration and evaluation assets may exceed its recoverable amount. The retention of regulatory permits and licenses, the Company’s ability to obtain financing for exploration and development activities and its future plans on the exploration and evaluation assets, current and future metal prices, and market sentiment are all factors considered by the Company.

In respect of the carrying value of exploration and evaluation assets recorded on the consolidated statements of financial position, management has determined that it continues to be appropriately recorded, as there are no indications that the value of the assets have declined more than its carrying amount.

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

3. SIGNIFICANT ACCOUNTING POLICIES

New accounting standards issued but not yet effective

The following accounting standards and amendments are effective for future periods. The Company is in the process of assessing the impacts of the adoption of these standards and amendments in the Company’s consolidated financial statements.

Classification of Liabilities as Current or Non-current (Amendments to IAS 1)

The amendments to IAS1 provide a more general approach to the classification of liabilities based on the contractual arrangements in place at the reporting date.

These amendments are effective for reporting periods beginning on or after January 1, 2024.

Amendments to IAS 8 – Definition of Accounting Estimates

These amendments clarify how companies distinguish changes in accounting policies from changes in accounting estimates, with a primary focus on the definition of and clarifications on accounting estimates. The distinction between the two is important because changes in accounting policies are applied retrospectively, whereas changes in accounting estimates are applied prospectively. Further, the amendments clarify that accounting estimates are monetary amounts in the financial statements subject to measurement uncertainty. The amendments also clarify the relationship between accounting policies and accounting estimates by specifying that a company develops an accounting estimate to achieve the objective set out by an accounting policy.

These amendments are effective for reporting periods beginning on or after January 1, 2023.

Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies

These amendments continue the IASB's clarifications on applying the concept of materiality. These amendments help companies provide useful accounting policy disclosures, and they include: requiring companies to disclose their material accounting policies instead of their significant accounting policies; clarifying that accounting policies related to immaterial transactions, other events or conditions are themselves immaterial and do not need to be disclosed; and clarifying that not all accounting policies that relate to material transactions, other events or conditions are themselves material. The IASB also amended IFRS Practice Statement 2 to include guidance and examples on applying materiality to accounting policy disclosures.

These amendments are effective for reporting periods beginning on or after January 1, 2023.

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

4. EXPLORATION AND EVALUATION ASSETS

Exploration and evaluation assets comprise the following accumulated expenditures:

	Rex	Mactush	Kalum	Total
	Property	Options	Project
	$	$	$	$
Balance at September 30, 2022	-	-	454,129	454,129
Acquisition costs	275,000	-	-	275,000
Camp costs	-	-	15,186	15,186
Geological	-	-	68,569	68,569
Reports	-	-	25,730	25,730
BC METC received	-	-	(13,750)	(13,750)
Impairment	-	-	(549,864)	(549,864)
Balance at September 30, 2023	275,000	-	-	275,000
Acquisition costs	-	220,000	-	220,000
Balance at June 30, 2024	275,000	220,000	-	495,000

Rex Property

On June 19, 2023, the Company closed an acquisition transaction to acquire for all the issued and outstanding shares of 1414447 B.C. Ltd., an arm's length private B.C. company that holds an undivided 100% interest in eight contiguous mineral claims located near Port Alberni, British Columbia, generally known as the Rex Property.

The Company acquired 1414447 B.C. Ltd. for the sole purpose of acquiring the Rex Property. Based on the number of shares acquired and the Company’s decision making power, the Company was determined to be the acquirer. The acquisition was determined to be an asset acquisition because 1414447 B.C. Ltd. did not meet the definition of a business. Upon closing of the transaction, 1414447 B.C. Ltd. became a subsidiary of the Company. The total consideration paid totaled $275,000 and has been allocated to the assets and liabilities acquired based on their estimated fair values on June 19, 2023 as follows:

Consideration: Shares issued Deferred cash payable included in accounts payable and accrued liabilities Cash paid Allocated: Rex Property Accounts payable Excess allocated to the Rex Property	Total $
	100,000 115,000 60,000 1 (1)
	275,000

The Company issued 1,000,000 common shares with a fair market value price of $0.10 per share. The deferred cash payable of $115,000 was due on December 18, 2023, and the Company is negotiating with the vendor to extend the payment date.

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

4. EXPLORATION AND EVALUATION ASSETS (continued)

Mactush Option

On May 20, 2024, the Company entered into a property option agreement to purchase 100% undivided interest in and to eight (8) mineral claims located in the Alberni Mining Division of British Columbia (“Mactush Option”).

To exercise the option, the Company must make a series a payments totalling $300,000 as follows:

• 1- $20,000 upon the final bulletin of the TSX Venture Exchange which was June 25, 2024 (paid);

• 2- $80,000 payable on or before 6 months from November 20, 2024;

• 3- $100,000 payable on or before May 20, 2025, and

• 4- $100,000 payable on or before May 20, 2026.

In addition, the Company must issue shares to the optionors as follows:

• 1- 2,500,000 common shares upon the final bulletin of the TSX Venture Exchange (issued);

• 2- $75,000 worth of common shares on or before May 20, 2025;

• 3- $100,000 worth of common shares on or before May 20, 2026;

In the event that the Company wishes to accelerate the option exercise within 12 months following the date of the Mactush Option, the final cash payment and the final issuance of Common Shares will be subject to reductions of $25,000 and $50,000, respectively.

Upon the exercise of the Mactush Option, the property will be subject to a 2% net smelter returns royalty in favour of the optionors, one-half (or 1%) of which the Company has the option to purchase at any time for $250,000.

The Mactush Option is subject to an arm’s length finders fee of $18,000.

Kalum Project

On August 12, 2020, as amended November 4, 2020, November 23, 2020, December 16, 2020, March 16, 2021, April 22, 2021, October 4, 2021, March 17, 2022, and December 21, 2022, the Company entered into a purchase option agreement (“Option Agreement” or “Option”) with Eagle Plains Resources Ltd. (“Eagle Plains”), whereby the Company was granted exclusive rights to acquire 60% of Eagle Plain’s 4 mining claims located in the Terrance area of British Columbia, Canada. During the year ended September 30, 2023, the Company decided not to pursue the Kalum Project in order to focus on the Rex Property, and wrote off capitalized expenditures of $549,864.

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

5. SHARE CAPITAL

Authorized:

Unlimited number of fully paid Class A common shares without par value and with voting rights (“Common shares”). Unlimited number of Class B Preferred Shares without par value – none issued.

Issued:

For the nine months ended March 31, 2024

On April 25, 2024, the Company closed a private placement through the issuance 5,150,000 common shares and 2,575,000 attached warrants (“Unit”). The Units were issued at $0.05 and the Company received $257,500 in gross proceeds. The attached warrants have a two year expiry and have an exercise price of $0.075 per share. The Company also paid $9,200 in cash finders fees.

For the year ended September 30, 2023

On June 19, 2023, the Company issued 1,000,000 common shares with a fair market value price of $0.10 per share for acquisition of 1414447 B.C. Ltd (Note 4).

Stock options

On April 18, 2023, the Company adopted the Incentive Stock Option Plan (the “Plan”). The shares issuable under the Plan are as follows:

• The term of any options granted may not exceed 10 years from the date of grant;

• The aggregate number of shares (“Optioned Shares”) that may be issuable pursuant to options granted under the

• Plan will not exceed 10% of the number of issued shares of the Company at the time of the granting of options under the Plan;

• No more than 5% of the issued shares of the Company, calculated at the date the option is granted, may be granted

• to any one Optionee (as hereinafter defined) in any 12-month period;

• No more than 2% of the issued shares of the Company, calculated at the date the option is granted, may be granted

• to any one Consultant in any 12-month period; and

• No more than an aggregate of 2% of the issued shares of the Company, calculated at the date the option is granted,

• may be granted to all Employees and/or Consultants conducting "Investor Relations Activities" (as that term is defined in TSX Venture Exchange Policy 1.1) in any 12-month period.

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

5. SHARE CAPITAL (continued)

A continuity schedule of stock options is as follows:

	Number of	Weighted average
	options	exerciseprice($)
Options outstanding, September 30, 2022	675,000	0.20
Expired	(675,000)	0.20
Options outstanding, September 30, 2023	-	-
Granted	1,200,00	0.06
Options outstanding, June 30, 2024	1,200,000	0.06

On May 15, 2024, the Company granted 1,200,000 options to directors, officers and consultants of the Company. These options had a grant date fair value of $61,400 calculated using the Black-Scholes model with the following inputs: i) exercise price: $0.06; ii) share price: $0.07; iii) term: 5 years; iv) volatility: 89%; v) risk-free interest rate: 3.67%. As at June 30, 2024, these options had a remaining life of 4.88 years.

On July 3, 2024, the Company granted 400,000 options to consultants of the Company.

Warrants

A continuity schedule of share purchase warrants is as follows:

	Number of	Weighted average
	warrants	exerciseprice($)
Warrants outstanding, September 30, 2022	1,956,000	0.24
Expired	(276,000)	0.15
Warrants outstanding, September 30, 2023	1,680,000	0.25
Expired	(1,680,000)	0.25
Granted	2,575,000	0.075
Warrants outstanding, June 30, 2024	2,575,000*	0.075

• As at June 30, 2024, these warrants had a remaining life of 1.82 years.

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

6. RELATED PARTY TRANSACTIONS

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. The Company has identified its directors and officers as its key management personnel.

During the nine months ended June 30, 2024, $45,000 (2023 - $2,000) was paid or accrued to the Chief Executive Officer for consulting fees.

As at June 30, 2024, $31,500 (2023- $10,500) was payable to related parties. The amounts payable are included in accounts payable and accrued liabilities, and are unsecured, non-interest bearing and payable on demand.

7. FINANCIAL AND CAPITAL RISK MANAGEMENT

			June 30,	September 30,
	Level	Ref.	2024	2023
			$	$
Other financial assets	1	a	86,667	43,824

a. Comprises cash, amounts receivable excluding refundable goods and services tax and reclamation deposit

The Company has determined the estimated fair values of its financial instruments based on appropriate valuation methodologies.

The fair values of the Company’s financial instruments are not materially different from their carrying values due to the shortterm maturity nature of the financial instruments.

Management of financial risk

The Company’s financial instruments are exposed to certain financial risks, which include the following:

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

7. FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)

Credit risk

Credit risk is the risk of loss due to the counterparty's inability to meet its obligations. The Company’s exposure to credit risk is on its cash and amounts receivable. Risk associated with cash is managed through the use of major banks which are high credit quality financial institutions as determined by rating agencies. Amounts receivable are due from the Canada Revenue Agency and a third party vendor which management believes there to be a low risk of default. The Company is not exposed to significant credit risk.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations when they become due. The Company will require financing from lenders, shareholders and other investors to generate sufficient capital to meet its short term operating requirements. The Company’s cash is held in corporate bank accounts available on demand. The Company’s accounts payable and accrued liabilities are due within 90 days of June 30, 2024. Liquidity risk has been assessed as high.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price risk.

Currency risk

The Company may be exposed to foreign currency risk on fluctuations related to cash, and accounts payable and accrued liabilities that are denominated in a foreign currency. As at June 30, 2024, the Company did not have any accounts in foreign currencies and considers foreign currency risk insignificant.

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. The Company is not exposed to significant interest rate risk.

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REX RESOURCES CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED JUNE 30, 2024 AND 2023 (Expressed in Canadian Dollars - Unaudited)

7. FINANCIAL AND CAPITAL RISK MANAGEMENT (Continued)

Price risk

The Company is exposed to price risk with respect to equity prices. Price risk as it relates to the Company is defined as the potential adverse impact on the Company’s ability to raise financing due to movements in individual equity prices or general movements in the level of the stock market. The Company closely monitors individual equity movements and the stock market to determine the appropriate course of action to be taken by the Company.

Capital management

The Company's policy is to maintain a strong capital base so as to maintain investor and creditor confidence and to sustain future development of the business. The capital structure of the Company consists of components of shareholders' equity. There were no changes in the Company's approach to capital management during the period. The Company is actively looking to acquire an interest in a business or assets, and this involves a high degree of risk. The Company has not determined whether it will be successful in its endeavors and does not generate cash flows from operations. The Company’s primary source of funds comes from the issuance of common shares. The Company does not use other sources of financing that require fixed payments of interest and principal due to lack of cash flow from current operations and is not subject to any externally imposed capital requirements.

The Company’s objective when managing capital is to safeguard the Company’s ability to continue as a going concern. Capital requirements are driven by the Company’s general operations. To effectively manage the Company’s capital requirements, the Company monitors expenses and overhead to ensure costs and commitments are being paid. There have been no changes to the Company’s approach to capital management during the period ended June 30, 2024.

8. SEGMENTED INFORMATION

The Company operates in one business segment being the exploration and development of resource properties. All assets of the Company are located in Canada.

9. COMMITMENTS

As at June 30, 2024, the Company had an obligation to pay $115,000 for the acquisition of 1414477 B.C. Ltd. by December 18, 2023, and the Company is negotiating with the vendor to extend the payment date (Note 4). The amount remains unpaid as of the Board approval date of these condensed interim financial statements.

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