Robex Resources Inc. — Interim / Quarterly Report 2020

May 28, 2020

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Condensed Interim Consolidated Financial Statements (unaudited) First quarter ended March 31, 2020

TABLE OF CONTENTS

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS	Page
Interim Consolidated Statements of Income	2
Interim Consolidated Statements of Comprehensive Income (Loss)	3
Interim Consolidated Statements of Changes in Equity	4
Interim Consolidated Statements of Financial Position	5
Interim Consolidated Statements of Cash Flows	6
Notes to Condensed Interim Consolidated Financial Statements
1 ‐ Nature of Operations and Going Concern	7
2 ‐ Basis of Presentation	8
3 ‐ Significant Accounting Policies	8
4 ‐ Critical Accounting Estimates and Judgements	8
5 ‐ Segmented Information	9
6 ‐ Mining Operation Expenses	10
7 ‐ Administrative Expenses	10
8 ‐ Financial Expenses	10
9 ‐ Inventories	11
10 ‐ Accounts Receivable	11
11 ‐ Mining Properties	11
12 ‐ Property, Plant and Equipment	12
13 ‐ Accounts Payable	12
14 ‐ Long‐Term Debt and Line of Credit	13
15 ‐ Environmental Liabilities	14
16 ‐ Lease Obligations	14
17 ‐ Accumulated Other Comprehensive Income	15
18 ‐ Additional Information on the Interim Consolidated Statements of Cash Flows	15
19 ‐ Earnings per Share	16
20 ‐ Contingency	16
21 ‐ Financial Instruments	17
22 ‐ Related Party Transactions	18
23 ‐ Subsequent Event	18

2/18

Firsts quarters ended March 31,

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

INTERIM CONSOLIDATED STATEMENTS OF INCOME

	2020	2019	2020	2019
	$	$	$	$
REVENUE ‐ GOLD SALES	‐‐‐	19,820,202	30,863,771	18,869,767
					20
COSTS OF OPERATIONS					55
Mining operation expenses ‐ note 6	‐‐‐	7,665,673	8,205,883	7,719,316
Administrative expenses ‐ note 7	‐‐‐	2,943,878	3,018,593	2,828,583
Depreciation of property, plant and equipment and amortization of intangible assets			7,403,106	8,364,514
OPERATING INCOME (LOSS)	‐‐‐	5,982,551	12,236,189	(42,646)
					#
OTHER EXPENSES (INCOME)					#
Financial expenses ‐ note 8	#REF!	1,344,836	326,321	798,122
Foreign exchange loss	‐‐‐	15,110	372,782	5,638
Other income	‐‐‐	(10,608)	(10,354)	(6,197)
INCOME (LOSS) BEFORE INCOME TAX EXPENSE	#REF!	5,298,270	11,547,440	(840,209)	#
Income tax expense (recovery)
Current	‐‐‐	173,480	223,095	165,479
Deferred	‐‐‐	‐‐‐	1,610,011	(1,675,648)
	‐‐‐	173,480	1,833,106	(1,510,169)
NET INCOME FOR THE PERIOD	#REF!	5,124,790	9,714,334	669,960
ATTRIBUTABLE TO
Common shareholders	#REF!	4,597,561	9,666,234	825,022	#
Non‐controlling interest	‐‐‐	527,229	48,100	(155,062)
	#REF!	5,124,790	9,714,334	669,960
EARNINGS PER SHARE ‐ note 19
Basic	0.011	0.008	0.017	0.001
Diluted	0.011	0.008	0.016	0.001

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

3/18

Firsts quarters ended March 31,

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

	2020	2019	2020	2019
	$	$	$	$
NET INCOME FOR THE PERIOD	#REF!	5,124,790	9,714,334	669,960
Other comprehensive income (loss)
Item that may be reclassified subsequently to net loss
Exchange difference	6,219,231	(1,731,233)	6,219,231	(2,728,567)
COMPREHENSIVE INCOME (LOSS)	#REF!	3,393,557	15,933,565	(2,058,607)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
Common shareholders	#REF!	3,384,472	15,846,434	(1,881,105)
Non‐controlling interest	,0	9,085	87,131	(177,502)
	#REF!	3,393,557	15,933,565	(2,058,607)

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

4/18

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

Balance as at December 31, 2018 Net income (loss) for the period Other comprehensive loss	Share capital Reserve ‐ Deficit Accumulated other Total Non‐controlling Total stock options comprehensive interest equity income ‐ note 17 66,734,172 3,352,295 (19,931,484) 6,066,553 56,221,536 695,217 56,916,753 ‐‐‐ ‐‐‐ 825,022 ‐‐‐ 825,022 (155,062) 669,960 ‐‐‐ ‐‐‐ ‐‐‐ (2,706,127) (2,706,127) (22,440) (2,728,567) Common shareholders
Comprehensive income (loss) for the period ‐‐‐ ‐‐‐ 825,022 (2,706,127) (1,881,105) (177,502) (2,058,607)
Balance as at March 31, 2019 66,734,172 3,352,295 (19,106,462) 3,360,426 54,340,431 517,715 54,858,146
Balance as at December 31, 2019 66,850,704 4,185,214 (859,288) 1,778,494 71,955,124 724,344 72,679,468 Net income for the period ‐‐‐ ‐‐‐ 9,666,234 ‐‐‐ 9,666,234 48,100 9,714,334 Other comprehensive income ‐‐‐ ‐‐‐ ‐‐‐ 6,180,200 6,180,200 39,031 6,219,231
Comprehensive income for the period ‐‐‐ ‐‐‐ 9,666,234 6,180,200 15,846,434 87,131 15,933,565 Dividend ‐‐‐ ‐‐‐ (11,605,191) ‐‐‐ (11,605,191) ‐‐‐ (11,605,191)
Balance as at March 31, 2020 66,850,704 4,185,214 (2,798,245) 7,958,694 76,196,367 811,475 77,007,842

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

5/18

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited) INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at As at March 31, 2020 December 31, 2019 $ $ 25,261,800 13,599,000 1 10,627,510 10,055,138 2,276,705 1,715,666 3 337,571 185,373 2,575,114 1,330,412 41,078,700 26,885,589 7,737,421 7,111,382 66,336,127 63,632,476 41 78,457 77,875 115,230,705 97,707,322 10,211,920 9,226,879 11,605,191 ‐‐‐ 6,232,047 7,186,918 51 27,744 ‐‐‐ 325,212 146,963 28,402,114 16,560,760 5,443,423 6,073,242 808,646 736,272 298,418 182,488 3,270,262 1,475,092 38,222,863 25,027,854 66,850,704 66,850,704 4,185,214 4,185,214 (2,798,245) (859,288) 7,958,694 1,778,494 76,196,367 71,955,124 61 811,475 724,344 62 77,007,842 72,679,468 115,230,705 97,707,322

ASSETS CURRENT ASSETS Cash Inventories ‐ note 9 Accounts receivable ‐ note 10 Prepaid expenses Deposits paid MINING PROPERTIES ‐ note 11 PROPERTY, PLANT AND EQUIPMENT ‐ note 12 INTANGIBLE ASSETS LIABILITIES CURRENT LIABILITIES Accounts payable ‐ note 13 Dividend payable Current portion of long‐term debt ‐ note 14 Line of credit ‐ note 14 Current portion of lease obligations ‐ note 16 LONG‐TERM DEBT ‐ note 14 ENVIRONMENTAL LIABILITIES ‐ note 15 LEASE OBLIGATIONS ‐ note 16 DEFERRED INCOME TAX EQUITY Share capital Reserve ‐ stock options Deficit Accumulated other comprehensive income ‐ note 17 Non‐controlling interest

Going concern (note 1) Subsequent event (note 23)

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

6/18

Firsts quarters ended March 31,

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

	2020	2019	2020	2019
	$	$	$	$
CASH FLOWS FROM THE FOLLOWING ACTIVITIES
Operating
Net income for the period	#REF!	5,124,790	9,714,334	669,960
Adjustments for
Financial expenses	#REF!	1,344,836	326,321	798,122
Depreciation of property, plant and equipment and amortization of intangible assets			7,403,106	8,364,514
Deferred income tax expense (recovery)	‐‐‐	‐‐‐	1,610,011	(1,675,648)
Net changes in non‐cash working capital items ‐ note 18	,947,187	(2,608,511)	(742,681)	(5,981,228)
Paid interest	608,695	(1,211,292)	(304,467)	(457,666)
	#REF!	5,173,055	18,006,624	1,718,054
Investing
Variation in deposits paid	1092,674	61,228	(361,666)	(669,477)
Acquisition of mining properties	1769,067	(97,364)	(122,250)	(1,579,818)
Acquisition of property, plant and equipment	2,330,126	(3,559,562)	(5,657,331)	(3,797,633)
Acquisition of intangible assets	1,818	‐‐‐	‐‐‐	(1,818)
	5,193,685	(2,244,701)	(6,141,247)	(6,048,746)
Financing
Repayment of long‐term debt	2,053,448	(1,763,840)	(2,517,927)	(2,276,260)
Variation in lines of credit	(392,283)	(401,597)	41,378	357,628
Payments of lease obligations	(23,405)	‐‐‐	(62,388)	(21,327)
	1,637,760	9,384,094	(2,538,937)	(1,939,959)
Effect of exchange rate changes on cash	2516,285	94,608	2,336,360	(234,247)
Increase (decrease) in cash	#REF!	12,407,056	11,662,800	(6,504,898)
Cash at the beginning of the period	6,380,809	4,393,184	13,599,000	7,422,458
Cash at the end of the period	#REF!	16,800,240	25,261,800	917,560
Tax paid	(274,338)	103,092	155,041	103,625

Additional information (note 18)

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

7/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

1 - NATURE OF OPERATIONS AND GOING CONCERN

Nature of activities

Robex Resources Inc. (the "Company") is a junior Canadian operations and exploration mining company. The Company has entered into commercial operation on its Nampala deposit, located on the Mininko permit, on January 1, 2017. In addition to its operational mining activities, the Company currently holds four exploration permits, all located in Mali, West Africa. These permits all demonstrate a favourable geology with a potential for the discovery of gold deposits. The head office's address is 437 Grande Allée Est, Québec (Quebec), G1R 2J5, Canada.

Going concern

These condensed interim consolidated financial statements attached have been prepared using International Financial Reporting Standards («IFRS») published by the International Accounting Standards Board («IASB») based on the going concern assumption, which contemplates the realization of assets and the settlement of liabilities in the normal course of business as they come due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. Management is aware in making its assessment of material uncertainties related to events and conditions that lend a significant doubt upon the Company’s ability to continue as a going concern, and accordingly, the appropriateness of the use of IFRS applicable to a going concern, as described in the following paragraph. These condensed interim consolidated financial statements do not reflect the adjustment to the carrying values of assets and liabilities, expenses and consolidated statement of financial position classifications that would be necessary were the going concern assumption inappropriate. These adjustments could be material.

If the Company's operations were to be interrupted due to COVID‐19 (note 4), it could have difficulty ensuring a continuous supply from its mine and making sales. As at March 31, 2020, the Company had accumulated a deficit of $2,798,245 and had working capital of $12,676,586, of which $25,261,800 was in cash, from which a dividend in the amount of $11,605,191 was paid in April 2020. Should the mine cease operations, the Company may not have sufficient working capital and liquidity to continue operations for a minimum period of twelve months.

Although the Company has taken significant measures to ensure the safety of its mine and to continue as a going concern, there can be no assurance that the Company will not be obliged to cease operations. The continuing operations of the Company will also depend on its ability to continue to raise the necessary debt financing. While management has successfully obtained financing in the past, there can be no assurance that such sources of financing will be available on terms acceptable to the Company in the future.

Also, although the Company has taken steps to verify the title to mining properties in which it has an interest in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to unregistered prior agreements and may not be in compliance with regulatory requirements.

8/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

2 - BASIS OF PRESENTATION

These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (“IASB”).

The accounting policies followed in these condensed interim consolidated financial statements are consistent with those applied in the Company’s annual financial statements for the year ended December 31, 2019. These condensed interim consolidated financial statements should be read in conjunction with the Company’s annual financial statements for the year ended December 31, 2019, which have been prepared in accordance with IFRS as issued by the IASB.

These condensed interim consolidated financial statements have been prepared in accordance with IFRS and were approved by the Board of Directors for issue on May 28, 2020.

3 - SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies are described in our annual audited consolidated financial statements for the period ended December 31, 2019.

4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The company has had to adjust some of its operating procedures to respond to the global COVID‐19 crisis and, to date, its operations have not been significantly impacted. Should the severity of the COVID‐19 outbreak increase or global containment continue, it is possible there could be negative impacts on the Company's workforce, supply chain or overall operations. As of the date of publication of these condensed interim consolidated financial statements, it is not possible to reliably estimate either the length or the severity of these developments and their impact on the Company's financial results, financial situation and cash flows.

9/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

5 - SEGMENTED INFORMATION

The Company conducts its operating and exploration activities in Mali. The operational sectors presented reflect the Company's management structure and how the Company's principal operational decision‐maker assesses business performance. The Company evaluates the performance of its operating sectors primarily based on operating income (loss), as shown in the following tables.

	Quarter ended March 31, 2020 $ Operations (Nampala, Mali) Explorations (Mali) Corporate management Total
REVENUE ‐ GOLD SALES Mining operation expenses ‐ note 6 Mining royalties ‐ note 6 Administrative expenses ‐ note 7 Depreciation of property, plant and equipment and amortization of intangible assets OPERATING INCOME(LOSS)	30,863,771 ‐‐‐ ‐‐‐ 30,863,771
	7,435,566 ‐‐‐ ‐‐‐ 7,435,566 770,317 ‐‐‐ ‐‐‐ 770,317 1,649,893 2,574 1,366,126 3,018,593 7,403,106 15,985 7,387,121 ‐‐‐
	13,620,874 (2,574) (1,382,111) 12,236,189
TOTAL ASSETS AS AT MARCH 31, 2020	90,288,173 7,983,703 16,958,828 115,230,705
	Quarter ended March 31, 2019 $ Operations (Nampala, Mali) Explorations (Mali) Corporate management Total
REVENUE ‐ GOLD SALES Mining operation expenses ‐ note 6 Mining royalties ‐ note 6 Administrative expenses ‐ note 7 Depreciation of property, plant and equipment and amortization of intangible assets OPERATING INCOME(LOSS)	18,869,767 ‐‐‐ ‐‐‐ 18,869,767
	7,131,171 ‐‐‐ ‐‐‐ 7,131,171 588,145 ‐‐‐ ‐‐‐ 588,145 1,772,823 2,717 1,053,043 2,828,583 8,363,361 ‐‐‐ 1,153 8,364,514
	1,014,267 (2,717) (1,054,196) (42,646)
TOTAL ASSETS AS AT DECEMBER 31,2019	84,390,490 7,396,252 5,920,580 97,707,322

The Company's proceeds come from one client. The Company does not economically depend on a limited number of buyers for the sale of gold, as gold can be sold through many commodity traders around the world.

10/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

6 - MINING OPERATION EXPENSES

- MINING OPERATION EXPENSES		Third quarters		Firsts quarters
	ended	September 30,		ended March 31,
	2020	2019	2020	2019
	$	$	$	$
Operating and maintenance supplies and service	‐‐‐	3,813,823	5,367,598	4,182,989
Fuel	‐‐‐	2,099,034	3,074,719	2,537,902
Reagents	‐‐‐	1,434,013	1,531,766	1,498,986
Employee benefit expenses	‐‐‐	808,734	1,139,278	839,004
Inventory change	‐‐‐	80,813	(631,566)	(418,772)
_Less:_Production expenses capitalized as stripping cost	‐‐‐	(1,451,469)	(3,254,464)	(1,653,071)
Delivery costs	‐‐‐	199,202	208,235	144,133
Total production costs	‐‐‐	6,984,150	7,435,566	7,131,171
Mining royalties	‐‐‐	681,523	770,317	588,145
	‐‐‐	7,665,673	8,205,883	7,719,316

- ADMINISTRATIVE EXPENSES				Firsts quarters
				ended March 31,
	2020	2019	2020	2019
	$	$	$	$
Operations and explorations	‐‐‐	1,502,975	1,652,467	1,775,540
Corporation management	‐‐‐	1,440,903	1,366,126	1,053,043
	‐‐‐	2,943,878	3,018,593	2,828,583

7 - ADMINISTRATIVE EXPENSES

Salary related amounts of $337,898 and $101,314, respectively, are included in the «Operations and explorations» item and in the «Corporate management» item for the quarter ended March 31, 2020 ($267,512 and $69,512, respectively, for the quarter ended March 31, 2019).

- FINANCIAL EXPENSES					Firsts quarters
					ended March 31,
		2020	2019	2020	2019
		$	$	$	$
Interest on non‐convertible debentures	#REF!		‐‐‐	‐‐‐	287,014
Interest on long‐term debt		‐‐‐	297,197	227,287	410,227
Effective interest on long‐term debt		‐‐‐	‐‐‐	21,910	29,580
Interest on lines of credit		‐‐‐	6,981	3,119	10,581
Interest on lease obligations		‐‐‐	‐‐‐	3,701	1,628
Bank charges		‐‐‐	162,054	49,549	46,589
Change in environmental liabilities		‐‐‐	7,441	20,755	12,503
	#REF!		1,344,836	326,321	798,122

8 - FINANCIAL EXPENSES

11/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

Gold in production Supplies and spare parts Stacked ore Silver (metals) INVENTORIES	As at March 31, As at December 31, 2020 2019 $ $ 3,613,598 2,878,934 6,625,469 6,942,126 360,105 217,731 28,338 16,347
	10,627,510 10,055,138

9 - INVENTORIES

10 - ACCOUNTS RECEIVABLE

Taxes receivable Other receivables

As at March 31,	As at December 31,
2020	2019
$	$
2,258,388	1,697,306
18,317	18,360
2,276,705	1,715,666

11 - MINING PROPERTIES

	Mininko	Diangounte	Sanoula	Kamasso
Undivided interest	100%	100%	100%	100%	Total
Mining rights and titles					$
Balance as at December 31, 2019	137,423	47,920	224,842	22,372	432,557
Exchange rate changes	9,431	3,289	15,433	1,536	29,689
Balance as at March 31, 2020	146,854	51,209	240,275	23,908	462,246
Exploration costs
Balance as at December 31, 2019	4,651,388	22,645	1,233,932	770,860	6,678,825
Expenses incurred	49,674	25,990	24,666	24,666	124,996
Amortization	1,773	2,541	885	885	6,084
Exchange rate changes	321,956	3,040	86,030	54,244	465,270
Balance as at March 31, 2020	5,024,791	54,216	1,345,513	850,655	7,275,175
Total as at December 31,2019	4,788,811	70,565	1,458,774	793,232	7,111,382
Total as at March 31, 2020	5,171,645	105,425	1,585,788	874,563	7,737,421

12/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

12 - PROPERTY, PLANT AND EQUIPMENT

			Equipment
	Mining	Buildings	related to	Tools,
	development	and office	mining	equipment	Exploration
	costs	development	explorations	and vehicles	equipment	Total
Cost						$
Balance as at December 31, 2019	16,500,008	8,922,809	91,853,888	2,845,123	712,293	120,834,121
Acquisition costs	447,501	310,852	4,797,670	421,593	‐‐‐	5,977,616
Exchange rate changes	1,132,571	612,465	6,304,906	195,291	48,892	8,294,125
Balance as at March 31, 2020	18,080,080	9,846,126	102,956,464	3,462,007	761,185	135,105,862
Accumulated depreciation
Balance as at December 31, 2019	5,964,468	3,496,894	45,752,689	1,351,948	635,646	57,201,645
Depreciation for the period	1,033,909	370,049	6,097,899	136,940	4,429	7,643,226
Exchange rate changes	396,147	240,128	3,151,555	93,189	43,845	3,924,864
Balance as at March 31, 2020	7,394,524	4,107,071	55,002,143	1,582,077	683,920	68,769,735
Net amounts:
As at December 31,2019	10,535,540	5,425,915	46,101,199	1,493,175	76,647	63,632,476
As at March 31, 2020	10,685,556	5,739,055	47,954,321	1,879,930	77,265	66,336,127
Not depreciated
as at March 31,2020(1)	614,120	541,452	3,988,128	‐‐‐	‐‐‐	5,143,700

(1) Property, plant and equipment with a book value of $5,143,700 are not depreciated because they are either under development or construction, or not installed as at March 31, 2020 ($4,504,631 as at December 31, 2019).

ACCOUNTS PAYABLE Suppliers Accrued interest Due to the state Accounts payables to a shareholder‐owned company Other payables	As at March 31, As at December 31, 2020 2019 $ $ 7,357,814 6,893,886 73,668 88,410 654,023 615,541 1,285,680 874,981 840,735 754,061
	10,211,920 9,226,879

13 - ACCOUNTS PAYABLE

13/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

14 - LONG-TERM DEBT AND LINE OF CREDIT

As at March 31, As at December 31, 2020 2019 $ $ Bank loan in the amount of $7,239,033 (3,000,000,000 CFA francs), annual interest of 7.75%, 173,771 644,202 secured by a first mortgage on land on the operating permit for gold and minerals in the region of Nampala. This loan is repayable in monthly instalments of $174,893 (73,615,402 CFA francs) including capital and interest, until April 2020 inclusively. Bank loan in the amount of $4,403,996 (2,000,000,000 CFA francs), annual interest of 7.75%, 793,074 1,050,095 secured by a first mortgage on land on the operating permit for gold and minerals in the region of Nampala. This loan is repayable in monthly instalments of $116,242 (48,928,202 CFA francs) including capital and interest, until October 2020 inclusively. Bank loan in the amount of $4,603,143 (1,997,000,000 CFA francs), annual interest of 7.75%, 1,169,605 1,488,108 secured by a pledge of $5,762,573 (2,500,000,000 CFA francs) on equipment and material located at the Nampala mine. This loan is repayable in monthly instalments of $157,673 (66,367,288 CFA francs) including capital and interest, until November 2020 inclusively. Bank loan in the amount of $11,549,531 (5,000,000,000 CFA francs), annual interest of 7%, 7,572,257 7,752,979 secured by a first mortgage on land on the operating permit for gold and minerals in the region of Nampala. This loan is repayable in monthly instalments of $284,580 (119,784,353 CFA francs) including capital and interest, until August 2022 inclusively.[(1)] Bank loan in the amount of $3,451,370 (1,500,000,000 CFA francs), annual interest of 7%, 2,078,795 2,223,166 secured by a third mortgage on land on the operating permit for gold and minerals in the region of Nampala. This loan is repayable in quarterly instalments of $296,971 (125,000,000 CFA francs) plus interest, until October 2021 inclusively.[(1)] Loan entirely repaid during the period ‐‐‐ 228,017 11,787,502 13,386,567 Less: Capitalized financing fees in the amount of $291,011 (122,263,500 CFA francs) (112,032) (126,407) 11,675,470 13,260,160 Less: Current portion of long‐term debt (6,232,047) (7,186,918) 5,443,423 6,073,242

(1) Under these obligations, the Company is commited to complying annually with certain conditions and financial ratios.

Line of credit Authorized line of credit from a Malian bank for a maximum amount of $1,102,512 (500,000,000 CFA francs), bearing interest at an annual rate of 8%, with a renegotiation date of July 31, 2020.	As at March 31, As at december 31, 2020 2019 $ $ 27,744 ‐‐‐

14/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

15 - ENVIRONMENTAL LIABILITIES Balance as at December 31, 2019 Accretion expense of the period Impact of exchange rate changes Balance as at March 31, 2020	$ 736,272 20,755 50,538
	807,565

The Company’s activities are subject to various laws and regulations regarding environmental restoration and closure provisions, for which the Company estimates future costs. These provisions may be revised on the basis of amendments to such laws and regulations and the availability of new information, such as changes in reserves corresponding to a change in the mine life and discount rates, changes in estimated costs of reclamation activities and acquisition or construction of a new mine. The Company makes a provision based on a best estimate of the future cost of rehabilitating mine sites and related production facilities on a discounted basis.

16 - LEASE OBLIGATIONS

Right‐of‐use assets are included in property, plant and equipment, as described below :

$ Balance as at December 31, 2019 206,056 107,763 313,819 Additions of right‐of‐use assets ‐‐‐ 346,190 346,190 Depreciation of the period (18,174) (44,327) (62,501) Effect in exchange rate changes 13,357 7,397 20,754 Total Buildings and office development Tools, equipment and vehicles	$ Balance as at December 31, 2019 206,056 107,763 313,819 Additions of right‐of‐use assets ‐‐‐ 346,190 346,190 Depreciation of the period (18,174) (44,327) (62,501) Effect in exchange rate changes 13,357 7,397 20,754 Total Buildings and office development Tools, equipment and vehicles
Balance as at March 31, 2020 201,239 417,023	618,262
Liabilities related to lease obligations are presented as follows: Balance as at December 31, 2019 Additions of right‐of‐use assets Depreciation of the period Effect in exchange rate changes Balance as at March 31, 2020 _Less :_Current portion of lease obligations
	$
	329,451
	346,190
	(62,388)
	10,377
	623,630
	(325,212)
	298,418

15/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

17 - ACCUMULATED OTHER COMPREHENSIVE INCOME Exchange difference Balance at the beginning of the period Exchange difference changes during the period Balance at the end of the period Attributable to Common shareholders Non‐controlling interest 18 - ADDITIONAL INFORMATION ON THE INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS a) Net changes in non‐cash working capital items Decrease (increase) in current assets Accounts receivable Inventories Prepaid expenses Deposits paid Increase in current liabilities Accounts payable b) Items not affecting cash related to investing activities Change in accounts payable related to property, plant and equipment	As at March 31, As at december 31, 2020 2019 (3 months) (12 months) $ $ 1,723,032 6,041,257 6,219,231 (4,318,225)
	7,942,263 1,723,032
	7,958,694 1,778,494 (16,431) (55,462)
	7,942,263 1,723,032
	2020 2019 $ $ (369,604) (4,923,876) 117,819 (1,258,163) (139,774) (139,114) (794,829) (53,016) Firsts quarters ended March 31,
	(1,186,388) (6,374,169) 443,707 392,941
	(742,681) (5,981,228)
	25,905 8,353

16/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

19 - EARNINGS PER SHARE

- EARNINGS PER SHARE				Firsts quarters
				ended March 31,
	2020	2019	2020	2019
	$	$	$	$
Net earnings and diluted attributable to common shareholders	#REF!	4,597,561	9,666,234	825,022
Basic weighted average number of shares outstanding	580,259,566	580,259,566	580,259,566	579,509,566
Stock options(1)	‐‐‐	2,395,789	8,896,058	‐‐‐
Diluted weighted average number of shares outstanding (1)	580,259,566	582,655,355	589,155,624	579,509,566
Basic net earnings per share	0.011	0.008	0.017	0.001
Diluted net earnings per share	0.011	0.008	0.016	0.001

(1) The calculation of the hypothetical conversions excludes options whose effect is anti‐dilutive. Some stock options are anti‐dilutive either because their price is higher than the average price of the Company’s common shares for each of the periods presented or because the impact of the conversion of these elements on net income would result in diluted earnings per share exceeding the basic earnings per share for each of these periods. For the quarter ended March 31, 2020, no stock option is excluded in the diluted net earnings per share calculation (14,050,000 stock options for the quarter ended March 31, 2019).

20 - CONTINGENCY

Environmental protection

The Company's activities are subject to governmental laws concerning the protection of the environment. The environmental consequences are difficult to identify, whether it is at the level of the results, of the term or of its impact. To the best knowledge of management, the Company is operating in compliance with the laws and regulations currently in effect. Costs resulting from the restructuring of sites are recorded in the results or included in the cost of the fixed assets concerned in the period in which it will be possible to make a reasonable estimate.

17/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

21 - FINANCIAL INSTRUMENTS

Measurement categories

Financial assets and financial liabilities have been classified into categories that determine their basis of measurement and, for items measured at fair value, whether changes in fair value are recognized in the consolidated statement of income or in the consolidated statement of comprehensive income (loss). These categories are: assets and liabilities at FVTPL and financial assets and liabilities at amortized cost. The following table shows the carrying amounts of assets and liabilities for each of these categories:

Financial assets at amortized cost Cash Accounts receivable Deposits paid Financial liabilities at amortized cost Accounts payable Dividend payable Line of credit Long‐term debt Lease obligations	As at March 31, As at december 31, 2020 2019 $ $ 25,261,800 13,599,000 18,317 18,360 2,575,114 1,330,412
	27,855,231 14,947,772
	9,557,896 8,611,338 11,605,191 ‐‐‐ 27,744 ‐‐‐ 11,675,470 13,260,160 623,630 329,451
	33,489,931 22,200,949

Financial risk factors

a) Market risk

Fair value

The carrying amounts of financial assets at amortized cost approximate their fair value due to their short‐term maturity and the prevailing interest rates of these instruments, which are comparable to those of the market.

The Company considers that the carrying amount of all its financial liabilities at amortized cost in its condensed interim consolidated financial statements approximates their fair value. Current financial assets and financial liabilities are valued at their carrying amounts, which are reasonable estimates of their fair value due to their near‐term maturities. The fair value of long‐term debt has not been determined due to the related specific conditions negotiated between the Company and the third parties concerned.

18/18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

21 FINANCIAL INSTRUMENTS - (continued)

b) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its obligations as they fall due.

The following table shows the contractual maturities of financial liabilities as at March 31, 2020:

	Carrying	Less than	From 1 to 3	More than 3
	amount	ayear	years	years
Accounts payable	9,557,897	9,557,897	‐‐‐	‐‐‐
Dividend payable	11,605,191	11,605,191	‐‐‐	‐‐‐
Long‐term debt (1)	11,675,470	6,953,806	5,759,946	‐‐‐
Line of credit	27,744	27,744	‐‐‐	‐‐‐
Lease obligations (1)	623,630	354,527	306,288	3,671
	33,489,932	28,499,165	6,066,234	3,671

The following table shows the contractual maturities of financial liabilities as at December 31, 2019:

	Carrying	Less than	From 1 to 3	More than 3
	amount	ayear	years	years
Accounts payable	8,611,338	8,611,338	‐‐‐	‐‐‐
Long‐term debt(1)	13,260,160	8,009,480	6,486,224	‐‐‐
Lease obligations(1)	329,451	160,593	183,792	67,564
	22,200,949	16,781,411	6,670,016	67,564

(1) Future maturities relating to these liabilities exceed their carrying amount because they include both capital and interest payments.

22 - RELATED PARTY TRANSACTIONS

Results for the quarter ended March 31, 2020 include expenses of $1,044,097 that were incurred with the directors and officers of companies controlled by them ($1,001,312 for the quarter ended March 31, 2019). These transactions occurred in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established by the related parties.

23 - SUBSEQUENT EVENT

On April 6, 2020, the Company issued 492,300 shares following the exercise of stock options for a cash consideration of $60,000.