Robex Resources Inc. — Interim / Quarterly Report 2020

Nov 26, 2020

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Condensed Interim Consolidated Financial Statements (unaudited) Third quarter ended September 30, 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	11
7 ‐ Administrative Expenses	11
8 ‐ Financial Expenses	11
9 ‐ Inventories	12
10 ‐ Accounts Receivable	12
11 ‐ Mining Properties	12
12 ‐ Property, Plant and Equipment	13
13 ‐ Accounts Payable	13
14 ‐ Long‐Term Debt	14
15 ‐ Environmental Liabilities	15
16 ‐ Lease Obligations	15
17 ‐ Equity	16
18 ‐ Accumulated Other Comprehensive Income (Loss)	17
19 ‐ Additional Information on the Interim Consolidated Statements of Cash Flows	18
20 ‐ Earnings per Share	18
21 ‐ Contingency	19
22 ‐ Financial Instruments	19
23 ‐ Related Party Transactions	20
24 ‐ Subsequent Events	20

2/20

Third quarters ended September 30,

INTERIM CONSOLIDATED STATEMENTS OF INCOME

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

Nine‐month periods ended September 30,

REVENUE ‐ GOLD SALES COSTS OF OPERATIONS Mining operation expenses ‐ note 6 Administrative expenses ‐ note 7 Depreciation of property, plant and equipment and amortization of intangible assets Stock‐based compensation expense ‐ note 17 OPERATING INCOME OTHER EXPENSES (INCOME) Financial expenses ‐ note 8 Foreign exchange loss (gain) Other income INCOME BEFORE INCOME TAX EXPENSE Income tax expense (recovery) Current Deferred NET INCOME FOR THE PERIOD ATTRIBUTABLE TO Common shareholders Non‐controlling interest EARNINGS PER SHARE ‐ note 20 Basic Diluted

2020 2019 2020 2019 $ $ $ $ 45,864,340 25,478,314 92,441,897 64,789,386 20 55 12,278,716 8,170,026 24,582,885 23,918,317 5,160,633 2,631,947 12,203,177 8,782,973 3,504,453 7,401,890 17,682,851 23,248,210 ‐‐‐ ‐‐‐ 573,791 ‐‐‐ 24,920,538 7,274,451 37,399,193 8,839,886 # # 346,736 663,912 952,326 2,178,045 (103,840) 255,474 (44,815) 218,086 (16,735) (20,646) (46,470) (163,794) 24,694,377 6,375,711 36,538,152 6,607,549 # 161,895 189,785 594,601 529,137 635,912 (497,397) 2,477,295 (2,193,159) 797,807 (307,612) 3,071,896 (1,664,022) 23,896,570 6,683,323 33,466,256 8,271,571 23,195,182 6,593,048 33,199,335 8,455,126 # 701,388 90,275 266,921 (183,555) 23,896,570 6,683,323 33,466,256 8,271,571 0.039 0.011 0.057 0.015 0.039 0.011 0.056 0.015

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

3/20

INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

INTERIM CONSOLIDATED STATEMENTS
(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited) OF COMPREHENSIVE INCOME (LOSS)	Nine‐month periods ended September 30, Third quarters ended September 30,
NET INCOME FOR THE PERIOD Other comprehensive income (loss) Item that may be reclassified subsequently to net loss Exchange difference COMPREHENSIVE INCOME COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO Common shareholders Non‐controlling interest	2020 2019 2020 2019 $ $ $ $ 23,896,570 6,683,323 33,466,256 8,271,571 1,896,387 (1,682,273) 6,362,486 (4,949,288)
	25,792,957 5,001,050 39,828,742 3,322,283
	25,057,441 4,571,965 39,497,314 3,539,581 735,516 429,085 331,428 (217,298)
	25,792,957 5,001,050 39,828,742 3,322,283

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

4/20

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 18 66,734,172 3,352,295 (19,931,484) 6,066,553 56,221,536 695,217 56,916,753 ‐‐‐ ‐‐‐ 8,455,126 ‐‐‐ 8,455,126 (183,555) 8,271,571 ‐‐‐ ‐‐‐ ‐‐‐ (4,915,545) (4,915,545) (33,743) (4,949,288) Common shareholders
Comprehensive income (loss) for the period ‐‐‐ ‐‐‐ 8,455,126 (4,915,545) 3,539,581 (217,298) 3,322,283
Balance as at September 30, 2019 66,734,172 3,352,295 (11,476,358) 1,151,008 59,761,117 477,919 60,239,036
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 ‐‐‐ ‐‐‐ 33,199,335 ‐‐‐ 33,199,335 266,921 33,466,256 Other comprehensive income ‐‐‐ ‐‐‐ ‐‐‐ 6,297,979 6,297,979 64,507 6,362,486
Comprehensive income for the period ‐‐‐ ‐‐‐ 33,199,335 6,297,979 39,497,314 331,428 39,828,742 Dividend ‐ note 17 c) ‐‐‐ ‐‐‐ (35,537,967) ‐‐‐ (35,537,967) (73,014) (35,610,981) Stock options exercised during the period ‐ note 17 a) 4,341,010 (1,644,731) ‐‐‐ ‐‐‐ 2,696,279 ‐‐‐ 2,696,279 Stock options charged to expense during the period ‐ note 17 b) ‐‐‐ 573,791 ‐‐‐ ‐‐‐ 573,791 ‐‐‐ 573,791
Balance as at September 30, 2020 71,191,714 3,114,274 (3,197,920) 8,076,473 79,184,541 982,758 80,167,299

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

5/20

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

As at As at September 30, 2020 December 31, 2019 $ $ 9,408,056 13,599,000 1 13,589,877 10,055,138 4,954,125 1,715,666 3 386,711 185,373 2,299,928 1,330,412 30,638,697 26,885,589 8,165,661 7,111,382 67,726,561 63,632,476 41 69,384 77,875 106,600,303 97,707,322 13,419,090 9,226,879 4,647,228 7,186,918 51 320,984 146,963 18,387,302 16,560,760 3,312,767 6,073,242 412,869 736,272 164,699 182,488 4,155,367 1,475,092 26,433,004 25,027,854 71,191,714 66,850,704 3,114,274 4,185,214 (3,197,920) (859,288) 8,076,473 1,778,494 79,184,541 71,955,124 61 982,758 724,344 62 80,167,299 72,679,468 106,600,303 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 Current portion of long‐term debt ‐ 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 ‐ note 17 Reserve ‐ stock options ‐ note 17 Deficit Accumulated other comprehensive income ‐ note 18 Non‐controlling interest

Going concern (note 1) Subsequent events (note 24)

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

6/20

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

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

Third quarters Nine‐month periods ended September 30, ended September 30,

Operating Net income for the period Adjustments for Financial expenses Depreciation of property, plant and equipment and amortization of intangible assets Deferred income tax expense (recovery) Stock‐based compensation expense Net changes in non‐cash working capital items ‐ note 19 Paid interest Investing Variation in deposits paid Acquisition of mining properties Acquisition of property, plant and equipment Acquisition of intangible assets Financing Repayment of long‐term debt Repayment of non‐convertible debentures Dividends paid Variation in line of credit Payments of lease obligations Issue of common shares Effect of exchange rate changes on cash Increase (decrease) in cash Cash at the beginning of the period Cash at the end of the period Tax paid CASH FLOWS FROM THE FOLLOWING ACTIVITIES	2020 2019 2020 2019 $ $ $ $ 23,896,570 6,683,323 33,466,256 8,271,571 346,736 663,912 952,326 2,178,045 3,504,453 7,401,890 17,682,851 23,248,210 635,912 (497,397) 2,477,295 (2,193,159) ‐‐‐ ‐‐‐ 573,791 ‐‐‐ 3,910,316 (2,038,954) (2,869,968) (3,728,825) (325,572) (395,645) (887,168) (1,308,807)
	31,968,415 11,817,129 51,395,383 26,467,035
	(401,188) 737,198 (1,189,560) (717,142) (190,035) (135,240) (507,044) (2,026,557) (6,767,429) (3,691,375) (16,413,657) (11,678,832) ‐‐‐ (17,500) ‐‐‐ (19,318)
	(7,358,652) (3,106,917) (18,110,261) (14,441,849)
	(1,822,836) (2,404,239) (6,267,697) (6,975,614) ‐‐‐ (3,881,000) ‐‐‐ (3,881,000) (23,940,078) ‐‐‐ (35,545,269) ‐‐‐ ‐‐‐ (538,681) ‐‐‐ (105,020) (89,549) (18,560) (235,945) (57,544) 1,572,779 ‐‐‐ 2,696,279 ‐‐‐
	(24,279,684) (6,842,480) (39,352,632) (11,019,178)
	48,023 282,372 1,876,566 102,447
	378,102 2,150,104 (4,190,944) 1,108,455 9,029,954 6,380,809 13,599,000 7,422,458
	9,408,056 8,530,913 9,408,056 8,530,913
	507,689 153,645 1,468,607 583,024

Additional information (note 19)

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

7/20

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 Operations

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

The 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 September 30, 2020, the Company had accumulated a deficit of $3,197,920 and had working capital of $12,251,395, of which $9,408,056 was in cash. 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.

8/20

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 November 26, 2020.

3 - SIGNIFICANT ACCOUNTING POLICIES

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

4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

A global pandemic related to COVID‐19 was declared by the World Health Organization in March 2020, resulting in adjustments to the Company's operating procedures. To date, its operations have not been significantly impacted. The current and expected repercussions on global commerce have been and will continue to be far‐reaching. To date, there has been significant volatility in commodity prices and foreign exchange rates around the world. In addition, many restrictions have been implemented, including travel restrictions and supply chain disruptions. As of the date of publication of these condensed interim consolidated financial statements, there is significant ongoing global uncertainty surrounding COVID‐19 and the extent and duration of the impact it may have. Thereby, 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.

9/20

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 September 30, 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)	45,864,340 ‐‐‐ ‐‐‐ 45,864,340
	11,193,833 ‐‐‐ ‐‐‐ 11,193,833 1,084,883 ‐‐‐ ‐‐‐ 1,084,883 2,095,211 4,289 3,061,133 5,160,633 3,488,468 ‐‐‐ 3,504,453 15,985
	28,001,945 (4,289) (3,077,118) 24,920,538
	Quarter ended September 30, 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)	25,478,314 ‐‐‐ ‐‐‐ 25,478,314
	7,488,841 ‐‐‐ ‐‐‐ 7,488,841 681,185 ‐‐‐ ‐‐‐ 681,185 1,284,225 1,983 1,345,739 2,631,947 18,237 ‐‐‐ 7,383,653 7,401,890
	8,640,410 (1,983) (1,363,976) 7,274,451

10/20

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

5 - SEGMENTED INFORMATION - (continued)

	Nine‐month period ended September 30, 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 Stock‐based compensation expense ‐ note 17 OPERATING INCOME(LOSS)	92,441,897 ‐‐‐ ‐‐‐ 92,441,897
	22,357,293 ‐‐‐ ‐‐‐ 22,357,293 2,225,592 ‐‐‐ ‐‐‐ 2,225,592 6,295,451 7,226 5,900,500 12,203,177 17,634,895 ‐‐‐ 47,956 17,682,851 ‐‐‐ ‐‐‐ 573,791 573,791
	43,928,666 (7,226) (6,522,247) 37,399,193
TOTAL ASSETS AS AT SEPTEMBER 30, 2020	94,974,287 8,407,183 3,218,833 106,600,303
	Nine‐month period ended September 30, 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)	64,789,386 ‐‐‐ ‐‐‐ 64,789,386
	22,027,072 ‐‐‐ ‐‐‐ 22,027,072 1,891,245 ‐‐‐ ‐‐‐ 1,891,245 4,625,574 7,158 4,150,241 8,782,973 23,193,499 ‐‐‐ 54,711 23,248,210
	13,051,996 (7,158) (4,204,952) 8,839,886
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.

11/20

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

6 - MINING OPERATION EXPENSES

Operating and maintenance supplies and service Fuel Reagents Employee benefit expenses Inventory change _Less:_Production expenses capitalized as stripping cost Delivery costs Total production costs - ADMINISTRATIVE EXPENSES Operations and explorations Corporation management Mining royalties - MINING OPERATION EXPENSES	2020 2019 2020 2019 $ $ $ $ 7,425,089 4,521,529 17,237,031 13,135,135 2,834,040 2,495,568 8,307,274 7,609,560 1,222,562 1,532,440 4,018,332 4,436,087 1,486,364 894,650 4,010,841 2,673,723 2,493,164 (484,238) (1,773,436) (1,097,741) (4,672,772) (1,660,435) (10,220,412) (5,240,564) 405,386 189,327 777,663 510,872 Nine‐month periods ended September 30, Third quarters ended September 30,
	11,193,833 7,488,841 22,357,293 22,027,072
	1,084,883 681,185 2,225,592 1,891,245
	12,278,716 8,170,026 24,582,885 23,918,317
	2020 2019 2020 2019 $ $ $ $ 2,099,500 1,286,208 6,302,677 4,632,732 3,061,133 1,345,739 5,900,500 4,150,241 Nine‐month periods ended September 30, Third quarters ended September 30,
	5,160,633 2,631,947 12,203,177 8,782,973

7 - ADMINISTRATIVE EXPENSES

Salary related amounts of $438,572 and $91,798, respectively, are included in the «Operations and explorations» item and in the «Corporate management» item for the quarter ended September 30, 2020 ($276,742 and $82,610, respectively, for the quarter ended September 30, 2019) and of $1,389,664 and $296,727 for the nine‐month period ended September 30, 2020 ($844,120 and $243,991, respectively, for the nine‐month period ended September 30, 2019).

8 - FINANCIAL EXPENSES

- FINANCIAL EXPENSES Interest on long‐term debt Effective interest on long‐term debt Interest on line of credit Interest on lease obligations Bank charges Change in environmental liabilities Interest on non‐convertible debentures	2020 2019 2020 2019 $ $ $ $ 160,978 311,226 579,242 1,085,735 18,956 24,987 61,454 82,144 599 11,118 3,880 33,734 7,715 2,254 19,928 6,291 135,436 43,464 222,045 141,904 23,052 11,496 65,777 (8,346) ‐‐‐ 259,367 ‐‐‐ 836,583 Nine‐month periods ended September 30, Third quarters ended September 30,
	346,736 663,912 952,326 2,178,045

12/20

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 September 30, As at December 31, 2020 2019 $ $ 4,947,064 2,878,934 8,371,754 6,942,126 260,967 217,731 10,092 16,347
	13,589,877 10,055,138

9 - INVENTORIES

ACCOUNTS RECEIVABLE Taxes receivable Other receivables	As at September 30, As at December 31, 2020 2019 $ $ 4,903,317 1,697,306 50,808 18,360
	4,954,125 1,715,666

10 - ACCOUNTS RECEIVABLE

11 - MINING PROPERTIES

	Mininko	Diangounté	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	9,874	3,444	16,158	1,608	31,084
Balance as at September 30, 2020	147,297	51,364	241,000	23,980	463,641
Exploration costs
Balance as at December 31, 2019	4,651,388	22,645	1,233,932	770,860	6,678,825
Expenses incurred	205,825	104,066	102,742	102,742	515,375
Amortization	5,316	4,311	2,655	2,655	14,937
Exchange rate changes	339,381	4,337	91,222	57,943	492,883
Balance as at September 30, 2020	5,201,910	135,359	1,430,551	934,200	7,702,020
Total as at December 31,2019	4,788,811	70,565	1,458,774	793,232	7,111,382
Total as at September 30, 2020	5,349,207	186,723	1,671,551	958,180	8,165,661

13/20

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	3,227,948	2,875,185	10,397,328	715,019	‐‐‐	17,215,480
Exchange rate changes	1,209,348	654,267	6,665,581	208,521	51,188	8,788,905
Balance as at September 30, 2020	20,937,304	12,452,261	108,916,797	3,768,663	763,481	146,838,506
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	2,528,074	1,088,374	13,526,111	476,547	13,282	17,632,388
Exchange rate changes	439,909	260,523	3,429,946	101,502	46,032	4,277,912
Balance as at September 30, 2020	8,932,451	4,845,791	62,708,746	1,929,997	694,960	79,111,945
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 September 30, 2020	12,004,853	7,606,470	46,208,051	1,838,666	68,521	67,726,561
Not depreciated
as at September 30,2020(1)	2,937,272	1,418,379	1,997,912	‐‐‐	‐‐‐	6,353,563

(1) Property, plant and equipment with a book value of $6,353,563 are not depreciated because they are either under development or construction, or not installed as at September 30, 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 Provision to a shareholder‐owned company Other payables	As at September 30, As at December 31, 2020 2019 $ $ 9,779,293 6,893,886 32,193 88,410 241,398 615,541 1,805,382 218,745 386,868 656,236 1,173,956 754,061
	13,419,090 9,226,879

13 - ACCOUNTS PAYABLE

14/20

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

14 - LONG-TERM DEBT _Less:_Capitalized financing fees in the amount of $291,011 (122,263,500 CFA francs) _Less:_Current portion of long‐term debt Bank loan in the amount of $3,451,370 (1,500,000,000 CFA francs), annual interest of 7%, 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 $297,867 (125,000,000 CFA francs) plus interest, until October 2021 inclusively.(1) Loans entirely repaid during the period Bank loan in the amount of $11,549,531 (5,000,000,000 CFA francs), annual interest of 7%, 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 $285,438 (119,784,353 CFA francs) including capital and interest, until August 2022 inclusively.(1) Bank loan in the amount of $4,403,996 (2,000,000,000 CFA francs), annual interest of 7.75%, 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 $116,593 (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%, 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 $158,149 (66,367,288 CFA francs) including capital and interest, until November 2020 inclusively.	As at September 30, As at December 31, 2020 2019 $ $ 115,844 1,050,095 300,032 1,488,108 6,127,038 7,752,979 1,489,333 2,223,166 ‐‐‐ 872,219
	8,032,247 13,386,567
	(72,252) (126,407)
	7,959,995 13,260,160
	(4,647,228) (7,186,918)
	3,312,767 6,073,242

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

15/20

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 Change in the provision as a result of changes in estimates Accretion expense of the period Impact of exchange rate changes Balance as at September 30, 2020	$ 736,272 (442,627) 65,777 53,447
	412,869

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 :

	Buildings	Tools,
	and office	equipment
	development	and vehicles	Total
			$
Balance as at December 31, 2019	206,056	107,763	313,819
Additions of right‐of‐use assets	‐‐‐	381,885	381,885
Depreciation of the period	(54,477)	(186,846)	(241,323)
Effect in exchange rate changes	13,475	7,185	20,660
Balance as at September 30, 2020	165,054	309,987	475,041

Liabilities related to lease obligations are presented as follows: Balance as at December 31, 2019 Additions of right‐of‐use assets Payments during the period Effect in exchange rate changes Balance as at September 30, 2020 _Less :_Current portion of lease obligations	$
	329,451
	381,885
	(235,945)
	10,292
	485,683
	(320,984)
	164,699

16/20

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated)

17 - EQUITY

a) Share capital Issued and fully paid 598,619,403 common shares (December 31, 2019 ‐ 580,259,566 common shares)	As at September 30, As at December 31, 2020 2019 $ $ 71,191,714 66,850,704

During the nine‐month period ended September 30, 2020, the Company issued 18,359,837 shares following the exercise of stock options for a cash consideration of $2,696,279. The value of options exercised that was reclassified to the share capital is $1,644,731.

b) Reserve ‐ stock options Current stock options Matured or cancelled stock options	As at September 30, As at December 31, 2020 2019 $ $ 555,936 1,626,876 2,558,338 2,558,338
	3,114,274 4,185,214

The stock options varied as follows:

Oustanding at the beginning of the period Granted Exercised Cancelled or expired Oustanding at the end of the period Exercisable	September 30, 2020 Year ended Nine‐month period ended (12 months) December 31, 2019 (9 months)
	Weighted average Weighted average Number exercise price Number exercise price $0.11 14,050,000 $0.10 $0.35 11,700,000 $0.13 $0.15 (750,000) $0.09 ‐‐‐ ‐‐‐ (2,000,000) $0.13 (18,359,837) 23,000,000 3,000,000
	$0.12 23,000,000 $0.11 7,640,163
	$0.12 23,000,000 $0.11 7,640,163

The total fair value of stock options granted during the nine‐month period ended September 30, 2020 is $573,791 (no stock option granted during the nine‐month period ended September 30, 2019). The total fair value was estimated on the grant dates using the Black‐Scholes option pricing model with the following average assumptions:

Risk‐free interest rate	0.32%
Expected volatility	66.50%
Expected dividend yield	0%
Expected life	5 years
Stock price	$0.35
Exercise price	$0.35

17/20

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated)

17 - EQUITY - (continued)

b) Reserve ‐ stock options ‐ (continued)

The following table summarizes some information on the Company’s stock options as at September 30, 2020:

	as at September 30, 2020 Outstanding options	as at September 30, 2020 Outstanding options	Exercisable options as at September 30, 2020	Exercisable options as at September 30, 2020
Number Years Number Years $0.09 1,950,000 1.8 1,950,000 1.8 $0.115 400,000 3.0 400,000 3.0 $0.13 5,290,163 4.2 5,290,163 4.2 Exerciseprice Weighted average remaining contractual life Weighted average remaining contractual life
7,640,163		7,640,163

c) Dividends

During the nine‐month period ended September 30, 2020, the Company declared extraordinary dividends for the common shares of $0.02 per common share on March 18, 2020 and $0.04 per common share on September 10, 2020 for a total amount of $35,537,967 (no dividend declared for the common shares during the nine‐month period ended September 30, 2019).

- ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 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	As at September 30, As at december 31, 2020 2019 (9 months) (12 months) $ $ 1,723,032 6,041,257 6,362,486 (4,318,225)
	8,085,518 1,723,032
	8,076,473 1,778,494 9,045 (55,462)
	8,085,518 1,723,032

18 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

18/20

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(all amounts are in Canadian dollars unless otherwise indicated)

19 - 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 (decrease) in current liabilities Accounts payable b) Items not affecting cash related to investing activities Change in accounts payable related to property, plant and equipment 20 - EARNINGS PER SHARE Net earnings and diluted attributable to common shareholders Basic weighted average number of shares outstanding Stock options(1) Diluted weighted average number of shares outstanding (1) Basic net earnings per share Diluted net earnings per share	2020 2019 2020 2019 $ $ $ $ (1,543,314) (897,486) (3,020,831) 261,573 3,008,321 146,903 (2,688,627) (2,738,846) 167,274 167,330 (183,404) (114,000) 874,574 (143,131) 320,513 133,144 Nine‐month periods ended September 30, Third quarters ended September 30,
	2,506,855 (726,384) (5,572,349) (2,458,129) 1,403,461 (1,312,570) 2,702,381 (1,270,696)
	3,910,316 (2,038,954) (2,869,968) (3,728,825)
	(784,016) 14,852 (862,565) 77,268 2020 2019 2020 2019 $ $ $ $ 23,195,182 6,593,048 33,199,335 8,455,126 Nine‐month periods ended September 30, Third quarters ended September 30,
	593,515,518 579,509,556 585,565,938 579,509,566 7,231,385 ‐‐‐ 10,904,327 ‐‐‐
	600,746,903 579,509,556 596,470,265 579,509,566
	0.039 0.011 0.057 0.015 0.039 0.011 0.056 0.015

(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 September 30, 2020, no stock option is excluded in the diluted net earnings per share calculation (12,050,000 stock options for the quarter ended September 30, 2019). For the nine‐month period ended September 30, 2020, no stock option is excluded in the diluted net earning per share calculation (12,050,000 stock options for the nine‐month period ended September 30, 2019).

19/20

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

21 - 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.

22 - 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 Long‐term debt Lease obligations	As at September 30, As at december 31, 2020 2019 $ $ 9,408,056 13,599,000 50,808 18,360 2,299,928 1,330,412
	11,758,792 14,947,772
	13,177,692 8,611,338 7,959,995 13,260,160 485,683 329,451
	21,623,370 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.

20/20

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

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

22 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 September 30, 2020:

	Carrying	Less than	From 1 to 3	More than 3
	amount	ayear	years	years
Accounts payable	13,177,692	13,177,692	‐‐‐	‐‐‐
Long‐term debt (1)	7,959,995	5,120,227	3,442,898	‐‐‐
Lease obligations (1)	485,683	340,849	169,007	‐‐‐
	21,623,370	18,638,768	3,611,905	‐‐‐

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.

23 - RELATED PARTY TRANSACTIONS

Results for the nine‐month period ended September 30, 2020 include expenses of $5,424,143 that were incurred with the directors and officers of companies controlled by them ($3,897,566 for the nine‐month period ended September 30, 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.

24 - SUBSEQUENT EVENTS

On October 1st, 2020, the Company obtained an authorized line of credit from a Malian bank for a maximum amount of $1,191,466 (500,000,000 CFA francs), bearing interest at an annual rate of 8%, with an expiry date of July 31, 2021.

On October 26th, 2020, the Company issued 500,000 shares following the exercise of stock options for a cash consideration of $45,000. The value of options exercised that was reclassified to the share capital is $32,688.