Silver Range Resources Ltd. — Interim / Quarterly Report 2021

May 20, 2021

Silver Range Resources Ltd.

Condensed Interim Consolidated Financial Statements

For the three months ended March 31, 2021

Unaudited – Prepared by Management (Expressed in Canadian Dollars)

Silver Range Resources Ltd. #1016 – 510 West Hastings Street Vancouver, British Columbia V6B 1L8

May 20, 2021

To the Shareholders of Silver Range Resources Ltd.

The attached condensed interim consolidated financial statements have been prepared by the management of Silver Range Resources Ltd. and have not been reviewed by the auditor of the Company.

Yours truly,

Michael Power Chief Executive Officer

Silver Range Resources Ltd.

Condensed Interim Consolidated Statements of Financial Position Unaudited – Prepared by Management

As at March 31, 2021 and December 31, 2020

		March 31,	December 31,
		2021	2020
	Note	$	$
Assets
Current assets
Cash		845,171	235,603
Receivables and prepayments	3	63,204	79,662
Marketable securities	4	665,278	636,445
		1,573,653	951,710
Non-current assets
Mineral property interests	6	4,139,197	4,202,415
Equipment	7	41,593	46,039
Reclamation deposits	8	35,308	35,208
		4,216,098	4,283,662
Total assets		5,789,751	5,235,372
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities		47,720	31,446
Accounts payable to related parties	11	54,914	45,504
Currentportion of lease liability	14	18,000	18,000
		120,634	94,950
Non-current liabilities
Lease liability	14	26,952	30,933
Total liabilities		147,586	125,883
Shareholders' equity
Share capital	9	38,009,182	37,432,682
Contributed surplus	9	566,277	553,188
Commitment to issue shares	9	35,438	17,719
Deficit		(32,968,732)	(32,894,100)
Total shareholders' equity		5,642,165	5,109,489
Total liabilities and shareholders' equity		5,789,751	5,235,372
Nature of operations and going concern	1
Event after the reporting period	16

Approved on behalf of the Board of Directors on May 20, 2021:

Director

“Bruce J. Kenway” “Bruce Youngman”

Director

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

4

Silver Range Resources Ltd.

Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

						Commitment		Total
	Number	Share		Subscriptions	Contributed	to issue		shareholders'
	of shares	capital		received	surplus	shares	Deficit	equity
	#	$		$	$	$	$	$
January 1, 2020	74,748,201	36,852,507		-	571,531	17,719	(33,092,294)	4,349,463
Re-allocated on cancellation of options	-		-	-	(39,444)	-	39,444	-
Subscriptions received for private placement shares	-		-	104,000	-	-	-	104,000
Shares for services - commitment to issue	-		-	-	-	17,719	-	17,719
Loss and comprehensive loss for theperiod	-		-	-	-	-	(225,542)	(225,542)
March 31, 2020	74,748,201	36,852,507		104,000	532,087	35,438	(33,278,392)	4,245,640
January 1, 2021	81,983,640	37,432,682		-	553,188	17,719	(32,894,100)	5,109,489
Share-based payments	-		-	-	13,089	-	-	13,089
Private placement units issued	2,330,000		582,500	-	-	-	-	582,500
Share issue costs	-		(6,000)	-	-	-	-	(6,000)
Shares for services - commitment to issue	-		-	-	-	17,719	-	17,719
Loss and comprehensive loss for theperiod	-		-	-	-	-	(74,632)	(74,632)
March 31, 2021	84,313,640	38,009,182		-	566,277	35,438	(32,968,732)	5,642,165

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

Silver Range Resources Ltd.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

		March 31,	March 31,
		2021	2020
	Note	$	$
Expenses
Administrative expenses		1,470	1,273
Consultingfees	11	15,214	29,090
Finance costs	14	519	688
Insurance		7,043	5,995
Investor relations and shareholder information		9,552	11,626
Management,administrative and corporate development fees	11	16,920	16,872
Office rent	11	7,500	7,500
Professional fees	11	26,406	19,474
Share-basedpayments	9, 11	13,089	-
Transfer agent and filing fees		3,264	2,723
Loss from operating expenses		(100,977)	(95,241)
Interest income		100	266
Foreign exchange gain		102	6,757
Gain (loss) on marketable securities	4	35,264	(134,604)
Mineral property examination costs	11	(38,974)	(2,720)
Gain on sale of mineral properties	6	29,853	-
Loss and comprehensive loss for theperiod		(74,632)	(225,542)
Loss per share
Weighted average number of common shares outstanding
- basic #	10	82,889,751	74,748,201
- diluted #	10	82,889,751	74,748,201
Basic loss per share $	10	(0.00)	(0.00)
Diluted lossper share$	10	(0.00)	(0.00)

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

6

Silver Range Resources Ltd.

Condensed Interim Consolidated Statements of Cash Flows Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

		March 31,	March 31,
		2021	2020
	Note	$	$
Operating activities
Loss for theperiod		(74,632)	(225,542)
Adjustments for:
Finance costs		519	688
Commitment to issue shares included in operatingexpenses	9	15,218	15,389
Share-basedpayments		13,089	-
(Gain)loss on marketable securities		(35,264)	134,604
Gain on sale of mineralpropertyinterests		(29,853)	-
Interest income		(100)	(266)
Net change in non-cash working capital items	13	24,984	8,450
		(86,039)	(66,677)
Financing activities
Leasepayments	14	-	(4,500)
Issue of units for cash		582,500	-
Subscriptions received for private placement shares		-	104,000
		582,500	99,500
Investing activities
Interest received		100	266
Proceeds from sale of marketable securities	4	6,430	9,010
Mineralpropertyoptionproceeds	6	130,115	30,000
Mineralpropertyacquisition costs	6	-	(29,086)
Deferred exploration and evaluation expenditures		(23,538)	(40,478)
		113,107	(30,288)
Increase in cash		609,568	2,535
Cash, beginning of period		235,603	139,081
Cash, end ofperiod		845,171	141,616
Supplemental cash flow information	13

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

7

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

1. Nature of operations and going concern

Silver Range Resources Ltd. (the “Company” or “Silver Range”) was incorporated on May 18, 2010 under the laws of the Province of British Columbia, Canada as a wholly owned subsidiary of Strategic Metals Ltd. (“Strategic”). In 2011, the Company and Strategic completed a Plan of Arrangement which reduced Strategic’s investment in the Company to less than 20%. The Company is registered extra-territorially to conduct operations in the Yukon Territory, Northwest Territories and Nunavut, Canada. The Company also has a US incorporated subsidiary company as detailed in note 5. The Company’s head office is located at 1016 - 510 West Hastings Street, Vancouver, British Columbia, Canada, V6B 1L8. Its records office is located at 1710 - 1177 West Hastings Street, Vancouver, British Columbia, Canada, V6E 2L3. The Company’s common shares trade on the TSX Venture Exchange (“TSX-V”).

The Company’s main corporate strategy is to advance its mineral properties to a drill-ready stage and then option or sell them to other parties. Under option or sale agreements, the Company may receive cash and/or shares in the acquiring companies and may retain interests or royalty interests in the properties. Through this process, the Company is assembling a portfolio of direct and indirect mineral property interests and marketable securities, which will assist in generating cash flows to meet overheads and ongoing exploration and drilling programs. The Company has not yet determined whether its direct or indirect mineral property interests contain mineral reserves that are economically viable. The Company's continued operations, and the underlying value and recoverability of the amounts shown for mineral property interests and marketable securities, are entirely dependent upon the existence of economically recoverable mineral reserves of the Company and those in which it holds a mineral property or shareholder interest. The continued exploration and development of projects will depend on it receiving future cash flows from the disposition or option of its mineral property interests and sale of marketable securities, or from its ability to obtain share capital financing.

In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s ability to raise capital or conduct exploration activities. There are travel restrictions and health and safety concerns in all areas where the Company operates, including the Yukon Territory, Northwest Territories and Nunavut in Canada, and in Nevada, USA, that may prohibit or delay exploration programs from proceeding. Operations will depend on obtaining necessary field supplies, obtaining contractor services, and safeguarding all personnel during the outbreak, which may be prohibitive or too costly. Various Government wage and loan subsidies are available to qualified companies to assist them with operating costs during the pandemic. To date, the Company has not qualified for assistance, but the various programs are constantly being expanded and relaxed, which may qualify the Company for assistance.

These condensed interim consolidated financial statements (the “financial statements”) are prepared on the basis that the Company will continue as a going concern, which assumes that the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of operations. As an exploration stage company, the Company does not have revenues and historically has recurring operating losses. As at March 31, 2021, the Company had working capital of $1,453,019 (December 31, 2020 - $856,760), and shareholders’ equity of $5,642,165 (December 31, 2020 - $5,109,489). Management has assessed that this working capital is sufficient for the Company to continue as a going concern beyond one year. If the going concern assumption were not appropriate for these financial statements, it could be necessary to restate the Company’s assets and liabilities on a liquidation basis.

8

Silver Range Resources Ltd. Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

2. Significant accounting policies

(a) Basis of presentation

These financial statements have been prepared in conformity with International Accounting Standard (“IAS”) 34, Interim Financial Reporting, using the same accounting policies as detailed in the Company‘s annual audited financial statements for the year ended December 31, 2020, and do not include all the information required for full annual financial statements in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). It is suggested that these financial statements be read in conjunction with the annual audited financial statements.

These financial statements have been prepared on an historical cost basis, except for financial instruments which are measured at fair value. In addition, these financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

All amounts on these financial statements are presented in Canadian dollars which is the functional currency of the Company and its subsidiary (note 5).

(b) Significant accounting policies

The accounting policies, estimates and critical judgments, methods of computation and presentation applied in these financial statements are consistent with those of the most recent annual audited consolidated financial statements and are those the Company expects to adopt in its annual consolidated financial statements for the year ended December 31, 2021. Accordingly, these financial statements should be read in conjunction with the Company’s most recent annual audited consolidated financial statements.

3. Receivables and prepayments

Receivables and prepayments consist of the following:

Receivables and prepayments consist of the following:
	March 31,	December 31,
	2021	2020
	$	$
Sales tax recoverable	6,207	1,513
Other receivables (note 6(d)(iii))	35,115	48,439
Prepaid expenses	21,882	29,710
	63,204	79,662

9

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

4. Marketable securities

The Company holds share positions in other resource companies which were obtained under mineral property option agreements or by participation in private placements. The valuation of the shares has been determined in whole by reference to the bid price of the shares on the TSX-V at each reporting date. Warrants have been received as attachments to share purchase units and do not trade in an active market. At the time of purchase the per unit cost is allocated in full to each common share. The Company determines the value of the warrants at each reporting date using the Black-Scholes option pricing model.

A summary of the marketable security transactions for the three months ended March 31, 2021 and March 31, 2020 is as follows:

A summary of the marketable security transactions for the three months ended March 31, 2021 and March 31, 2020 is as follows:	A summary of the marketable security transactions for the three months ended March 31, 2021 and March 31, 2020 is as follows:
Common Total shares Warrants Total gain (loss) $ $ $ $
Cost January 1, 2020 225,702 - 225,702 Proceeds on disposal (9,010) - (9,010) Realized loss (3,710) - (3,710) (3,710) March 31,2020 212,982 - 212,982 Fair value January 1, 2020 177,327 22,291 199,618 Cost of disposals (12,720) - (12,720) Unrealized loss (109,351) (21,543) (130,894) (130,894) March 31,2020 55,256 748 56,004
Total loss	(134,604)
Cost January 1, 2021 486,946 - 486,946 Proceeds on disposal (6,430) - (6,430) Realized gain 3,778 - 3,778 3,778 March 31, 2021 484,294 - 484,294 Fair value January 1, 2021 595,172 41,273 636,445 Cost of disposals (2,653) - (2,653) Unrealized gain (loss) 41,306 (9,820) 31,486 31,486 March 31, 2021 633,825 31,453 665,278
Total gain	35,264

10

Silver Range Resources Ltd. Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

5. Subsidiary information

In July 2016, the Company completed the purchase of various mineral properties located in the Northwest Territories and Nunavut, Canada, and in Nevada, USA, from Panarc Resources Ltd. (“Panarc”). On closing, Panarc was issued 10,000,000 common shares of the Company at a price of $0.205 per share for total consideration of $2,050,000. Panarc did not retain any royalty or other interest in any of the acquired properties. The purchase price was allocated to the various properties based on the hectares of each property.

Also purchased from Panarc in July 2016 was a 100% interest in the shares of Manta Minerals Corporation (“Manta”), a company incorporated in the State of Nevada, USA. A nominal amount of $1 was allocated to the share purchase.

Panarc incorporated Manta to hold title to its mineral property interests in Nevada, as it is a requirement in the USA that title to USA mineral interests be held by US corporations. Since incorporation Manta has had no transactions other than to hold title to the Nevada mineral claims. All costs to acquire or explore the claims were incurred by Panarc prior to the sale to Silver Range, and by Silver Range after the sale. Other than to hold title to the Nevada minerals claims, Manta has no assets or liabilities, and has had no transactions since being acquired by Silver Range.

6.

Mineral property interests

The Company’s mineral property interests include various mineral properties located in the Yukon Territory, Northwest Territories, and Nunavut in Canada and in Nevada, USA. Properties which are in close proximity and could be developed as a single economic unit are grouped into projects.

		Northwest
	Yukon	Territories	Nunavut	Nevada	Total
	$	$	$	$	$
January 1, 2020	938,183	390,235	1,846,481	845,871	4,020,770
Acquisitions/staking/assessments	-	259	-	28,827	29,086
Exploration and evaluation	4,658	5,009	1,306	4,324	15,297
Optionand sale proceeds	-	-	-	(30,000)	(30,000)
March 31, 2020	942,841	395,503	1,847,787	849,022	4,035,153
January 1, 2021	967,836	381,841	1,868,257	984,481	4,202,415
Exploration and evaluation	4,588	11	678	31,767	37,044
Option and sale proceeds	-	(75,000)	-	(55,115)	(130,115)
Gainonsale of mineralproperty	-	-	-	29,853	29,853
March 31, 2021	972,424	306,852	1,868,935	990,986	4,139,197

11

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

Changes in the project carrying amounts for the three months ended March 31, 2020 are summarized as follows:

(1)	Acquisitions/ Exploration Beginning staking/ and Option Ending balance assessments evaluation proceeds balance $ $ $ $ $
	Yukon Projects Barb 36,003 - - - 36,003 Mel 609,405 - 213 - 609,618 Michelle 110,001 - - - 110,001 Silver Range 182,774 - 4,445 - 187,219
	Total 938,183 - 4,658 - 942,841
	Northwest Territories Projects Hare 36,947 - - - 36,947 Itchen 43,101 - - - 43,101 Sparta 40,187 259 5,009 - 45,455 Uptown Gold 270,000 - - - 270,000
	Total 390,235 259 5,009 - 395,503
	Nunavut Projects Atlantis 25,988 - 70 - 26,058 Bling 182,042 - - - 182,042 Esker Lake 149,645 - - - 149,645 Goldbugs 733,006 - - - 733,006 Grumpy 24,313 - - - 24,313 Happy Thought 11,220 - - - 11,220 Hard Cash 176,474 - - - 176,474 Nigel 20,940 - - - 20,940 Noomut 8,636 - - - 8,636 Quannituq 66,745 - - - 66,745 Quartzite 46,059 - - - 46,059 Tree River 103,055 - 245 - 103,300 Uist 116,257 - - - 116,257 Yandle 182,101 - 991 - 183,092
	Total 1,846,481 - 1,306 - 1,847,787
	Nevada Projects Bellehelen 15,298 - - - 15,298 Black Star 8,283 - - - 8,283 Bottom Dollar 28,576 - - - 28,576 Cold Springs 83,097 - - - 83,097 East Gold Point 25,828 - - - 25,828 East Goldfield 51,904 28,827 3,729 (30,000) 54,460 Enigma 85,877 - - - 85,877 Gold Chief 141,519 - - - 141,519 Hannapah 4,907 - - - 4,907 Irwin 4,792 - - - 4,792 Kawich 7,088 - 248 - 7,336 Krug 14,771 - - - 14,771 Legal Tender 26,986 - - - 26,986 Loner 22,664 - 347 - 23,011 Lucky Boy 13,172 - - - 13,172 Posh 4,950 - - - 4,950 Rand 19,857 - - - 19,857 Robot 21,787 - - - 21,787 Skylight 110,084 - - - 110,084 Sniper 5,221 - - - 5,221 Steptoe 49,571 - - - 49,571 Strongbox 99,639 - - - 99,639
	Total 845,871 28,827 4,324 (30,000) 849,022
	Total Projects 4,020,770 29,086 15,297 (30,000) 4,035,153

(1) Includes depreciation on equipment of $4,445 (note 7).

12

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

Exploration and evaluation expenditures on the projects consisted of the following:

		Northwest
	Yukon	Territories	Nunavut	Nevada	Total
Three months ended March 31, 2020	$	$	$	$	$
Depreciation	4,445	-	-	-		4,445
Field	-	9	991	780		1,780
Labour	213	-	315	-		528
Survey and consulting (note 11)	-	5,000	-	3,544		8,544
Total	4,658	5,009	1,306	4,324	15,297

13

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

Changes in the project carrying amounts for the three months ended March 31, 2021 are summarized as follows:

(1)	Exploration Beginning and Option Gain on Ending balance evaluation proceeds Sale balance $ $ $ $ $
	Yukon Projects Barb 36,003 - - - 36,003 Mel 617,233 - - - 617,233 Michelle 110,001 142 - - 110,143 Silver Range 204,599 4,446 - - 209,045
	Total 967,836 4,588 - - 972,424
	Northwest Territories Projects Hare 36,947 - - - 36,947 Itchen 43,101 - - - 43,101 Sparta 30,823 - - - 30,823 Uptown Gold 270,970 11 (75,000) - 195,981
	Total 381,841 11 (75,000) - 306,852
	Nunavut Projects Atlantis 26,058 - - - 26,058 Bling 188,207 - - - 188,207 Esker Lake 149,645 - - - 149,645 Goldbugs 733,006 - - - 733,006 Grumpy 24,313 - - - 24,313 Hard Cash 176,962 116 - - 177,078 Nigel 20,940 231 - - 21,171 Noomut 8,636 - - - 8,636 Quannituq 66,946 - - - 66,946 Quartzite 46,059 - - - 46,059 Tree River 128,021 331 - - 128,352 Uist 116,372 - - - 116,372 Yandle 183,092 - - - 183,092
	Total 1,868,257 678 - - 1,868,935
	Nevada Projects Bellehelen 57,443 - - - 57,443 Black Star 9,274 - - - 9,274 Bottom Dollar 30,049 - - - 30,049 Cold Springs 58,627 - (20,000) - 38,627 East Gold Point - 5,262 (35,115) 29,853 - East Goldfield 54,511 - - - 54,511 Enigma 112,689 7,088 - - 119,777 Gold Chief 147,472 1,007 - - 148,479 Hannapah 571 - - - 571 Kawich 11,945 - - - 11,945 Krug 16,729 - - - 16,729 Legal Tender 50,789 - - - 50,789 Loner 32,311 - - - 32,311 Lucky Boy 29,530 2,899 - - 32,429 Mount Tobin 568 - - - 568 Neversweat 2,944 - - - 2,944 Rand 22,057 - - - 22,057 Robot 24,235 - - - 24,235 Roughrider 6,264 1,303 - - 7,567 Skylight 104,856 - - - 104,856 Sniper 25,006 252 - - 25,258 Steptoe 75,956 13,956 - - 89,912 Strongbox 108,555 - - - 108,555 Tom 2,100 - - - 2,100
	Total 984,481 31,767 (55,115) 29,853 990,986
	Total Projects 4,202,415 37,044 (130,115) 29,853 4,139,197

(1) Includes depreciation on equipment of $4,446 (note 7).

14

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

Exploration and evaluation expenditures on the projects consisted of the following:

		Northwest
	Yukon	Territories	Nunavut	Nevada	Total
Three months ended March 31, 2021	$	$	$	$	$
Assays	-	-	-	18,072	18,072
Depreciation (note 7)	4,446	-	-	-	4,446
Field	-	11	-	904	915
Labour	142	-	348	116	606
Survey and consulting (note 11)	-	-	330	12,318	12,648
Travel and accommodation	-	-	-	357	357
Total	4,588	11	678	31,767	37,044

The cumulative acquisition, exploration and evaluation costs incurred on the projects for all periods/years and the current carrying values are as follows:

current carrying values are as follows:
	Cumulative	Option proceeds /	Carrying
	costs, net	Write-offs / Gain on sale	value
As at March 31, 2021	$	$	$
Yukon	28,606,048	(27,633,624)	972,424
Northwest Territories	1,118,119	(811,267)	306,852
Nunavut	2,514,101	(645,166)	1,868,935
Nevada	1,244,846	(253,860)	990,986
Total	33,483,114	(29,343,917)	4,139,197

Option proceeds on the projects for the three months ended March 31, 2021 and March 31, 2020 consisted of the following:

following:
	March 31,	March 31,
	2021	2020
	$	$
Northwest Territories Projects	75,000	-
Nevada projects	55,115	30,000
	130,115	30,000

Certain of the Company’s mineral property interests are subject to option out or sale agreements, earn-in or purchase agreements or net smelter return royalties (“NSR”), as detailed below.

15

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

(a) Yukon projects

(i) Mel and Barb projects

The Mel and Barb projects were purchased in 2014 for $220,000. The claims are located in the Watson Lake Mining District, Yukon Territory. The Mel project is subject to a prior 1% NSR on any commercial production from the property and there is an additional 1% NSR due to the vendor of the properties on both the Mel and Barb projects, which may be purchased at any time for $1,000,000.

Under a prior option agreement, the Company received cash payments totalling $192,500, and common shares of the optionee having an aggregate fair value of $75,000.

(ii) Michelle project

The Michelle property was acquired in 2015 in exchange for cash and the Company’s Mint property. The Michelle property is located in the Dawson and Mayo Mining Districts, Yukon Territory. Under a prior option agreement, the Company received a cash payment of $10,000.

On February 19, 2021, the Company signed an Asset Purchase Agreement with Silver47 Exploration Corp. (“Silver47”) to sell Silver47 a 100% interest in the Company’s Michelle project.

To complete the purchase, Silver47 is required to:

• Issue to the Company 19.9% of Silver47’s common shares following a listing on a Canadian securities exchange before March 1, 2022;

• Grant the Company a 1% NSR royalty. Silver47 will have the right of first refusal on the sale of the royalty; and

• Making a one-time milestone payment of $1,000,000 in cash or Silver47 common shares upon the declaration of a NI 43-101 compliant resource or reserve estimate in excess of 80,000,000 ounces of silver.

(iii) Silver Range project

The Silver Range and Mint group of claims were acquired in January 2011 from Strategic, by the issue of Silver Range common shares and warrants having a value of $2,954,026. The claims are located in the Whitehorse Mining District, Yukon Territory. The projects were considered impaired in 2015 and writtendown to a $14 carrying value. The Mint project was sold in 2015.

The Silver Range project also includes the JRV claims which were purchased in 2011 for cash and shares totalling $309,000. The JVR claims are subject to a 2% NSR on any commercial production of precious metals and a 1% NSR on commercial production of other metals. One-half of the NSR on the precious metals can be purchased by the Company for $1,500,000.

The Silver Range project also includes the BP4 claim which was acquired in 2015 for $1. The BP4 claim is subject to a prior 2% NSR to a third party.

In 2016, the Company signed a Letter of Intent to option out its Silver Range project to a private British Columbia company for future shares and a retained 2% and 1% NSR. On December 11, 2020, the parties signed an Amending Agreement whereby the Letter of Intent was extended to June 30, 2021.

16

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

(b) Northwest Territories projects

(i) Cabin Lake royalty interest

By agreement dated November 7, 2017, and amended on August 9, 2018, the Company agreed to sell 100% of its Cabin Lake property located in the Northwest Territories, to Rover Metals Corp. (“Rover”).

The Company retains a 2% NSR on all mineral production from the Cabin Lake property and Rover is required to make annual advance royalty payments equal to the lesser of $20,000 or 7% of annual exploration expenditures by Rover for each of the calendar years 2019 (none), 2020 ($20,000) and 2021, and thereafter at $20,000 per year. The advance royalty payments cease once a total of $220,000 has been paid.

During the year ended December 31, 2020, the Company accrued $20,000 as an advance royalty payment from Rover which was recognized within gain on sale of mineral property interests as the carrying value of the Cabin Lake property was $nil.

Rover has the right to acquire up to 1.5% of the 2% NSR by making payments of either $750,000 or $1,500,000, depending on the indicated gold reserves that may be reported.

(ii) Uptown Gold property option

By Agreement dated September 9, 2016, and as amended on August 15, 2017, April 6, 2018, September 5, 2018, February 18, 2020, December 4, 2020, and March 18, 2021, the Company granted Rover the right to earn up to a 100% interest in the Company’s Uptown Gold property. For a 75% interest (the “First Option”), Rover issued Silver Range 1,970,694 common shares in 2018 at a fair value of $98,535 ($0.05 each) and must make cash payments of $300,000 and incur exploration expenditures as detailed below. On December 4, 2020, Rover assigned its interest and obligations in the First Option to a private Ontario-based company (the “Assignee”) in addition to amending the timing and amount of expenditures required.

To complete the First Option, the following payments and expenditures are required:

Cash payments of $300,000:

• $30,000 on or before March 9, 2017 (received from Rover);

• $60,000 on or before September 9, 2017 (received from Rover);

• $45,000 on or before September 9, 2018 (received from Rover);

• $45,000 in cash or shares on or before April 30, 2019 (received from Rover in cash);

• $75,000 on execution of the March 18, 2021 amendment (received); and

• $45,000 on the earlier of five business days of the Assignee earning a public listing, or June 30, 2021.

Incurring exploration expenditures of $1,600,000:

• $350,000 on or before September 9, 2017 (incurred by Rover);

• $500,000 on or before December 31, 2021; and

• $750,000 on or before December 31, 2022.

Should the Assignee attain its 75% interest and not proceed to acquire the remaining interest, a joint venture would be formed to further explore the properties, unless otherwise agreed. For an additional 25% interest (the “Second Option”) Rover is required to issue Silver Range 2,500,000 common shares by September 30, 2022.

Should Assignee and Rover acquire a collective 100% interest in the property, the Company will retain a 2% NSR from any commercial production, one-half of which may be purchased by Rover for $1,000,000. Advance annual royalty payments of $50,000 will be paid to the Company commencing September 30, 2023.

17

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

(c) Nunavut projects

Under various prior year Nunavut project option agreements, the Company received cash payments totalling $62,500 and common shares of the optionee having an aggregate fair value of $11,500.

(d) Nevada projects

(i) Cold Springs property option

On September 1, 2020 and amended on May 11, 2021, the Company signed a Definitive Agreement with Supernova Metals Corp. (“Supernova” (formerly Volt Energy Corp.)), to sell Supernova up to a 100% interest in certain claims underlying the Cold Springs project in Nevada. Under the Definitive Agreement, Supernova can acquire the project by issuing the Company 1,000,000 common shares of Supernova on or before June 30, 2021. Prior to the May 11, 2021 amendment, the Company had received cash payments totalling $50,000.

The claims will be subject to a 2.5% NSR, of which 1.5% can be purchased by Supernova for $1,250,000.

(ii) Enigma property

On February 25, 2021, the Company entered into a Letter of Intent forming a joint venture with Auburn Gold Mining, LLC (“Auburn”) to consolidate certain of their respective claim holdings in Nevada. The joint venture includes the Company’s Enigma and Auburn’s Cambridge properties, and certain intervening claims that connect the properties (the “Project Area”). Each party holds a 50% interest project area. The parties will form a Technical Committee made up to two representatives from each party to determine exploration and marketing activities and the Company will act as operator. Each party will be responsible for maintaining their Project Area claims in good standing and will split the cost of maintaining the intervening claims.

18

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

• (d) Nevada projects (continued)

• (iii) East Gold Point project option

EGP claims:

On July 27, 2020, the Company signed an Option Agreement with GGL Resources Corp. (“GGL”), to sell GGL a 75% interest in certain claims underlying the East Gold Point Project (the “EGP property”). Pursuant to the terms of the Option Agreement, GGL has the right to acquire a 75% interest in the project by making cash payments to the Company as detailed below and incurring minimum aggregate exploration expenditures of $1,500,000 on or before July 31, 2023.

Cash payments of $180,000:

• $10,000 upon the execution of the option agreement (received);

• Reimbursing the Company for certain staking costs and fees (received $15,605);

• $20,000 on or before December 31, 2020 (received); and

• The aggregate of $150,000 as calculated bi-annually and based on 10% of the expenditures incurred during each of the periods from January 1 to June 30, and July 1 to December 31 (accrued $35,115 as at and during the three months ended March 31, 2021, and received $28,438 during the period then ended).

Upon GGL having earned the 75% interest in the EGP property it will enter into a 75%/25% joint venture with the Company for further exploration of the project. Additionally, the Company will be entitled to receive a one-time cash payment of US$4 per ounce of gold identified in a NI 43-101 compliant measured or indicated resource estimate (or proven or probable reserve estimate) on the project.

TOM claims:

On July 27, 2020, the Company and a private Nevada corporation (collectively, the “Optionors”) signed an Option Agreement with GGL, to sell GGL a 100% interest in certain additional claims underlying the East Gold Point Project (the “TOM property”) in which both the Company and the private Nevada corporation each hold a 50% interest. Pursuant to the terms of the Option Agreement, GGL can acquire the project by incurring aggregate minimum exploration expenditures of US$1,500,000 on or before July 31, 2023 and reimbursing the Optionors for certain staking costs and fees (completed).

Upon GGL having earned the 100% interest in the TOM property, the Optionors will be entitled to receive a one-time cash payment of US$1 per ounce of gold identified in a NI 43-101 compliant measured or indicated resource estimate (or proven or probable reserve estimate) on the project.

Additionally, the Optionors shall each retain a 1% NSR on all mineral production from the property, from which 50% can be purchased by GGL for a payment of US$2 per ounce on the first 250,000 ounces of gold contained in any measured or indicated resource estimate (or proven or probable reserve estimate), and US$1 per ounce of gold above 250,000 ounces thereafter.

19

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

• (d) Nevada projects (continued)

  • (iv) East Goldfield property option

On February 20, 2020, the Company signed a Property Option Agreement with ATAC Resources Ltd. (“ATAC”), a company with common Directors and Officers, to sell ATAC a 100% interest in the Company’s East Goldfield property located in Nevada, USA. Pursuant to the Option Agreement, ATAC has the right to earn an initial 75% interest in the property (the “Initial Option”) by making cash payments to the Company based on the following schedule:

Cash payments of $400,000:

• $30,000 on execution of the Option Agreement (received);

• $40,000 on or before April 1, 2021 (subsequently received);

• $70,000 on or before April 1, 2022;

• $100,000 on or before April 1, 2023; and

• $160,000 on or before April 1, 2024.

In addition, the Initial Option requires ATAC to incur exploration expenditures on the property as follows:

• $200,000 on or before April 1, 2021 (completed);

• An additional $200,000 on or before April 1, 2022; and

• An additional $9,600,000 on or before December 1, 2025.

ATAC has the right at its sole election to make up 50% of all of the cash payments under the Initial Option through the issuance of common shares to the Company. The number of common shares to be issued as payment is to be calculated using a share price equal to the volume weighted average price of ATAC’s common shares for the 10 trading days immediately preceding the applicable payment date, subject to such price not being less than $0.05 per share. The Company is not required to accept any number of common shares where accepting the number of shares will result in the Company holding (directly or indirectly) more than an aggregate 19.9% of the issued and outstanding shares of ATAC.

On completion of the Initial Option, ATAC will have the right to acquire an additional 25% interest in the property (the “Second Option”) by paying the Company an additional $10,000,000 on or before the date that is six months from receipt of a notice from ATAC confirming its exercise of the Initial Option.

The Company will retain a 2% NSR on all mineral production from the properties, of which up to 1% can be purchased for $1,000,000.

The Company will also be entitled to receive a one-time cash payment equal to US$2 per ounce of gold (or the value equivalent in other metals) on the first 1,000,000 ounces of gold, identified in a NI 43-101 compliant measured and indicated resource estimate application (or proven and probable reserves) to the property; and an additional one-time cash payment equal to US$1 per ounce of gold (or the value equivalent in other metals) on all ounces of gold in excess of 1,000,000 ounces of gold, identified in a NI 43-101 compliant proven or probable reserve estimate applicable (or proven and probable reserves) to the property.

(v) Gold Chief property

Under a prior year option agreement, the Company received a cash payment of $10,000.

20

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

• (d) Nevada projects (continued)

(vi) Hannapah property option

On July 16, 2019, the Company signed an Option Agreement with Mercury Exploration Nevada Inc. (“Mercury”) to sell Mercury a 100% interest in the Company’s Hannapah property located in Nevada, USA. On June 30, 2020, Mercury assigned its interest and obligations in the agreement to Infield Capital Corp. (“Infield”). Pursuant to the agreement, the Company will receive cash from Infield based on the following schedule:

Cash payments of US$30,000:

• US$10,000 upon execution of the Agreement (received, $13,294);

• US$10,000 on or before July 16, 2020 (received $14,016); and

• US$10,000 on or before July 16, 2021.

After exercising the option, Infield is required to make annual royalty payments to the Company not to exceed in aggregate US$205,000, as follows:

• US$10,000 on or before July 16, 2024;

• US$15,000 on or before July 16, 2025; and

• US$20,000 on or before July 16, 2026 and each year through to July 16, 2034.

Additionally, the Company is entitled to receive a one-time cash payment of US$2 per ounce of gold or equivalent identified in a NI 43-101 compliant measured or indicated resource estimate (or proven and probable reserve) to the property.

The Company will retain a 2% NSR on all mineral production from the property, of which up to 1% can be purchased by Infield for US$1,000,000.

(vii) Loner property option

On December 1, 2020, the Company signed an Option Agreement with Victory Resources Corporation (“Victory”) to sell Victory an 80% interest in the Company’s Loner property located in Nevada, USA. Pursuant to the Option Agreement, the Company will receive cash and common shares of Victory staged over three years based on the following schedule:

Cash payments of US$400,000:

• US$20,000 upon execution of the Agreement ($25,901 received);

• US$20,000 on or before May 8, 2021 (not received);

• US$40,000 on or before December 8, 2021;

• US$60,000 on or before December 8, 2022;

• US$100,000 on or before December 8, 2023; and

• US$160,000 on or before December 8, 2024.

To exercise the option, Victory must also complete 1,200 metres of drilling on the property on or before December 8, 2024.

The Company will retain a 2% NSR on all mineral production from the property, of which up to 1% can be purchased by Victory at any time before commencement of commercial production on the property for US$1,000,000. Additionally, the Company is entitled to receive a one-time cash payment of US$4 per ounce of gold or equivalent identified in a proven or probable reserve estimate contained in a Feasibility Study applicable to the property.

21

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

6. Mineral property interests (continued)

• (d) Nevada projects (continued)

(viii) Skylight property option

On August 28, 2020, and as amended on March 31, 2021, the Company signed an Option Agreement with Rush Gold Corp. (“Rush”) to sell Rush a 100% interest in the Company’s Skylight property located in Nevada, USA. Pursuant to the agreement, the Company will receive cash and common shares of Rush staged over three years based on the schedule below. If Rush does not obtain a public listing on or before July 31, 2021, the agreement will terminate, unless otherwise agreed to in writing by the parties.

Cash payments of $325,000:

• $10,000 upon execution of the Agreement (received);

• $5,000 on or before April 6, 2021 (subsequently received);

• $10,000 upon Rush obtaining a public listing (not yet completed);

• $100,000 on or before August 28, 2022; and

• $200,000 on or before August 28, 2023.

650,000 common shares of Rush:

• 50,000 common shares upon Rush obtaining a public listing (not yet completed);

• 100,000 common shares on or before August 28, 2021;

• 200,000 common shares on or before August 28, 2022;

• 300,000 common shares on or before August 28, 2023.

To exercise the option, Rush must also complete 3,000 metres of drilling on the property on or before August 28, 2023; and provide the Company with US$3,600 on or before August 1, 2021, for the purposes of maintaining the claims comprising the property in good standing.

The Company will retain a 3% NSR on all mineral production from the property, of which 2% can be purchased by Rush at any time before commencement of commercial production on the property for $1,000,000. Additionally, the Company is entitled to receive a one-time cash payment of US$4 per ounce of gold or equivalent identified in a NI 43-101 compliant measured or indicated resource estimate (or proven and probable reserve) to the property. If Rush has not identified either a mineral resource or mineral reserve on or before August 28, 2026, Rush will be required to pay US$10,000 to the Company on such date and on all subsequent anniversaries of the agreement until such time that a mineral resource or mineral reserve is established.

(ix) Yuge property option

On February 27, 2018, the Company signed a Letter of Intent, which was subsequently replaced with a Definitive Agreement (the “Option Agreement”), to option to Trifecta Gold Ltd. (“Trifecta”) up to a 75% interest in the Company’s Yuge property, located in Nevada, USA. Under the Option Agreement, Trifecta reimbursed the Company staking and recording costs of $9,066.

On July 7, 2020, the Option Agreement was replaced with a Property Purchase Agreement (the “PP Agreement”). Pursuant to the terms of the PP Agreement, Trifecta can acquire a 100% interest in the Yuge property by:

• Issuing to the Company that number of common shares equal to 9.9% of the total number of issued and outstanding common shares of Trifecta immediately following the closing of the first $500,000 of a financing (4,797,611 common shares received at a fair value of $359,821);

• Reimbursing the Company for property maintenance payments, rentals and filing fees made to maintain the property in good standing until September 1, 2021 ($15,734 received); and

• Paying the Company $250,000 on or before July 7, 2021 (the “Final Payment”) (subsequently received 2,212,389 common shares at a fair value of $250,000)

Upon completion of the PP Agreement, the Company will retain a 2% NSR from the commercial production of any mineral products on the property. At any time following the closing of the PP Agreement, Trifecta will have the right to purchase one-half of the NSR for $1,000,000. Additionally, the Company is entitled to receive a one-time cash payment of US$2 per ounce of gold or equivalent identified in NI 43-101 compliant technical report of a measured or indicated mineral resource, or proven or probable mineral reserve, as applicable, to the property.

22

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

7. Equipment

Equipment
	Right-of-use
	asset
	$
Cost
January1,2020 and December 31,2020	81,600
Accumulated depreciation
January 1, 2020	17,781
Depreciation	17,780
December 31,2020	35,561
Cost
January 1, 2021 and March 31, 2021	81,600
Accumulated depreciation
January 1, 2021	35,561
Depreciation	4,446
March 31, 2021	40,007
Net book value
December 31,2020	46,039
March 31, 2021	41,593

Equipment is comprised of a right-of-use (“ROU”) asset, being the lease to purchase of exploration equipment situated at the Company’s Silver Range project (Keg claims). Depreciation is taken on the ROU asset on a straight-line basis over the term of the lease and has been capitalized as part of the Silver Range mineral property interest (note 6). Title to the equipment remains with the lessor until completion of the lease. See note 14 for lease liability details.

8. Reclamation deposits

The reclamation deposits are comprised of cashable guaranteed investment certificates with one-year terms. They are pledged to the Northwest Territories, the Kivalliq Inuit Association in Nunavut (“KIA”), and the Bureau of Land Management in the State of Nevada (“BLM”) to ensure specified properties are properly restored after exploration. Management has determined that the Company has no material reclamation work related to the properties requiring the deposits.

23

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

9. Share capital

The authorized share capital of the Company consists of an unlimited number of common shares without par value. All issued shares are fully paid.

Transactions for the issue of share capital during the three months ended March 31, 2021:

On February 24, 2021, the Company closed a non-brokered private placement consisting of the issuance of 2,330,000 units at a price of $0.25 each, for gross proceeds of $582,500. Each unit consists of one common share and one share purchase warrant, with each warrant exercisable at $0.33 until February 24, 2024. No value was allocated to the warrant component of the unit.

Legal and filing fees amounted to $6,000 and were recorded as a reduction to share capital.

Transactions for the issue of share capital during the three months ended March 31, 2020:

There were no transactions for the issue of share capital during three months ended March 31, 2020.

On April 6, 2020, the Company closed the first tranche of a private placement consisting of 1,300,000 units at a price of $0.08 per unit for gross proceeds of $104,000. Each unit consisted of one common share and one share purchase warrant, exercisable at a price of $0.16 until April 6, 2022. As at March 31, 2020, the Company had received all subscriptions totaling $104,000, recorded as subscriptions received on the condensed interim consolidated statement of financial position.

Commitment to issue shares

The Company has an ongoing Consulting Agreement with Paladin Geoscience Corp. (“Paladin”) a company controlled by the President and CEO of the Company. The Consulting Agreement has been renewed each year by way of Amending Agreements. The 2021 Amending Agreement was signed on April 1, 2021 and is effective until March 31, 2022.

Pursuant to the 2021 Amending Agreement, Paladin will continue to receive a monthly consulting fee of $11,250 in cash and/or shares, which at the sole discretion of Paladin, may be all cash, 50% cash and 50% common shares, or all common shares of the Company. All other terms of the Amending Agreement are unchanged from the previous Consulting Agreement, except for a $250,000 termination provision which would be triggered by a change in control of the Company or the resignation or discharge of Paladin as a Director/Officer of the amalgamated or merged company in the event of a change in control. The consulting fee is paid/accrued on a monthly basis, and any common shares are issuable semi-annually. Amounts rendered by Paladin are recorded within both operating expenses and mineral property interests (notes 11,13).

All share issuances are subject to regulatory approval, including TSX-V acceptance, and are subject to such hold periods as are required by the TSX-V and applicable regulatory authorities. The number of any common shares to be issued by the Company is calculated at the end of each month during which services are provided, at a deemed price per share equal to the Market Price of the Company's shares (as that term is defined in the policies of the TSX-V) on the last day of each such month on which the shares of the Company traded, minus 50% of the maximum discount permitted by those policies.

As at March 31, 2021, the Company has accrued a commitment for $35,438, of which $17,719 was accrued for the three months ended March 31, 2021 comprised of $15,218 included within operating expenses and $2,501 capitalized as mineral property costs (both amounts are before applicable sales taxes), and $17,719 accrued for the three months ended December 31, 2020 comprised of $11,259 within operating expenses and $6,460 capitalized as mineral property costs.

The accrual represents the future issuance of 172,147 common shares to Paladin for services rendered from October 1, 2020 to March 31, 2021.

To March 31, 2021, the Company has issued 1,099,922 common shares to Paladin for services rendered from April 1, 2019 to September 30, 2020, of which 710,439 common shares were issued during the year ended December 31, 2020.

24

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

9. Share capital (continued)

Stock options

The Company has adopted an incentive stock option plan (the “Plan”). The essential elements of the Plan provide that the aggregate number of common shares of the Company’s capital stock issuable pursuant to options granted under the Plan may not exceed 10% of the number of issued shares of the Company at the time of grant. Options granted under the Plan may have a maximum term of ten years. A participant who is not a consultant conducting investor relations activities, who is granted an option that is exercisable at or above the market price at the date of grant, can have their options vest immediately, unless otherwise determined by the Board of Directors. A participant who is a consultant conducting investor relations activities, who is granted options under the Plan, will become vested with the right to exercise one-quarter of the options upon conclusion of every three months subsequent to the grant date. All options are to be settled by physical delivery of common shares.

A summary of the status of the Company’s stock options as at March 31, 2021 and December 31, 2020 and changes during the period/year then ended is as follows:

during the period/year then ended is as follows:
	Period ended		Year ended
	March	31, 2021	December	31, 2020
		Weighted		Weighted
		average		average
	Options	exercise price	Options	exercise price
	#	$	#	$
Options outstanding, beginning of period/year	3,945,000 0.21		3,665,000	0.22
Granted		- -	500,000	0.15
Cancelled		- -	(220,000)	0.25
Options outstanding, end ofperiod/year	3,945,000 0.21		3,945,000	0.21

As at March 31, 2021, the Company has stock options outstanding and exercisable as follows:

Options	Options	Exercise
outstanding	exercisable	price	Expiry date
#	#	$
400,000	400,000	0.21	July 11, 2021
150,000	150,000	0.15	January 5, 2022
1,895,000	1,895,000	0.25	June 19, 2022
400,000	400,000	0.15	February 8, 2023
500,000	500,000	0.17	March 14, 2023
100,000	100,000	0.15	October 26, 2023
300,000	300,000	0.11	January 13, 2025
100,000	50,000	0.19	September 2, 2025
100,000	25,000	0.24	November 5, 2025
3,945,000	3,820,000

The following table summarizes information about the stock options outstanding at March 31, 2021:

Exercise		Weighted average	Weighted average
prices	Options	remaining life	exercise price
$	#	(years)	$
0.11 - 0.21	1,950,000	1.94	0.16
0.24-0.25	1,995,000	1.39	0.25
	3,945,000	1.66	0.21

25

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

9. Share capital (continued)

Stock options (continued)

There were no stock options granted or cancelled during the three months ended March 31, 2021.

During the year ended December 31, 2020, 500,000 stock options were granted to a new Director and consultants. The stock options are exercisable at a weighted average price of $0.15 each and expire on January 13, 2025 (300,000), September 2, 2025 (100,000), or November 5, 2025 (100,000). The Company recorded the fair value of all options granted using the Black-Scholes option pricing model. Share-based payment expense was calculated using the following weighted average assumptions: expected life of options – five years, stock price volatility – 89.00%, no dividend yield, and a risk-free interest rate yield – 1.13%. The fair value is particularly impacted by the Company’s stock price volatility, determined using data from the previous five years.

Using the above assumptions, the fair value weighted average of options granted during the year ended December 31, 2020, was $0.09 per option, for an aggregate total of $44,822.

The total share-based payment expense for the three months ended March 31, 2021 was $13,089 (2020 - $nil) and includes only options that vested during the period.

During the three months ended March 31, 2020, 220,000 options were cancelled because of a Director’s resignation. As a result, the original share-based payments expense of $39,444 was reversed from contributed surplus and credited to deficit.

26

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

9. Share capital (continued)

Warrants

As an incentive to complete private placements, the Company may issue units which include common shares and common share purchase warrants. Using the residual value method, the Company determines whether a value should be allocated to warrants attached to units sold in completed private placements. Finders’ warrants may be issued as a private placement share issue cost and are valued using the Black-Scholes option pricing model.

A summary of the Company’s common share purchase warrants as at March 31, 2021 and December 31, 2020 and changes during the period/year then ended is as follows:

	Period	ended	Year ended	Year ended
	March 31, 2021		December	31, 2020
		Weighted		Weighted
		average		average
	Warrants	exercise price	Warrants	exercise price
	#	$	#	$
Warrants outstanding, beginning of period/year	6,525,000	0.16	4,615,333	0.25
Issued	2,330,000	0.33	6,525,000	0.16
Expired	-	-	(4,615,333)	0.25
Warrants outstanding, end ofperiod/year	8,855,000	0.20	6,525,000	0.16

As at March 31, 2021, the Company has warrants outstanding and exercisable as follows:

Warrants	Warrants	Warrants	Exercise
outstanding		exercisable	price	Expiry date
#		#	$
	1,300,000	1,300,000	0.16	April 6, 2022
	5,225,000	5,225,000	0.16	May 26, 2022
	2,330,000	2,330,000	0.33	February24,2024
	8,855,000	8,855,000

Contributed surplus

Contributed surplus is comprised of the accumulated fair value of stock options recognized as share-based payments and the value of previously forfeited common shares. Contributed surplus is increased by the fair value of stock options on vesting and is reduced by corresponding amounts when the options expire or are exercised or cancelled. Future fluctuations in contributed surplus may also include the fair value of finders’ warrants issued on private placements and corresponding reductions when the warrants expire or are exercised.

	Shares	Options	Total
	$	$	$
January 1, 2020	9,874	561,657	571,531
Options cancelled	-	(39,444)	(39,444)
March 31,2020	9,874	522,213	532,087
January 1, 2021	9,874	543,314	553,188
Options vesting	-	13,089	13,089
March 31, 2021	9,874	556,403	566,277

27

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

10. Loss per share

The calculation of basic and diluted loss per share for the three months ended March 31, 2021 was based on the loss of $74,632 (2020 - $225,542) and a weighted average number of common shares outstanding of 82,889,751 (2020 – 74,748,201).

All stock options and warrants were excluded from the diluted weighted average number of common shares calculation, as their effect would have been anti-dilutive.

11. Related party payables and transactions

A number of key management personnel and Directors hold positions in other entities that result in them having control or significant influence over the financial or operating policies of these entities. There were no loans to management personnel or Directors, or entities over which they have control or significant influence during the three months ended March 31, 2021 and March 31, 2020.

Key management personnel and Directors receive no salaries, non-cash benefits (other than incentive stock options), or other remuneration directly from the Company, other than noted below, and there are no contracts with them that cannot be terminated without penalty on thirty days’ advance notice, except for the Paladin termination fee as detailed in note 9. Key management personnel and Directors participate in the Company’s stock option plan.

There were no stock options granted or cancelled involving key management personnel during the three months ended March 31, 2021.

During the three months ended March 31, 2020, the Company granted 200,000 stock options to a new Director having a fair value on grant of $10,161.

During the three months ended March 31, 2020, 220,000 stock options were cancelled as result of a Director’s resignation. As a result, the original share-based payments expense of $39,444, was reversed from contributed surplus and credited to deficit.

The Company transacted with the following related parties:

• (a) Douglas Eaton is a Company Director. He is a shareholder and has significant influence over Archer, Cathro & Associates (1981) Limited (“Archer Cathro”), which is a geological consulting firm. Archer Cathro provides the Company with geological consulting services, office rent and administration.

• (b) Glenn Yeadon is the Company’s Secretary. He controls Glenn R. Yeadon Personal Law Corporation (“Yeadon Law Corp.”), which provides the Company with legal services.

• (c) Larry Donaldson is the Company’s CFO. He is a principal of Donaldson Brohman Martin CPA Inc. (“DBM CPA”), a firm in which he has significant influence. DBM CPA provides the Company with accounting and tax services.

• (d) Ian Talbot is the Company’s COO. He provides the Company with management services.

• (e) Michael Power is the Company’s President and CEO. He controls Paladin, which provides the Company with consulting services. The consulting fees are paid by cash and shares (note 9). He also had a financial interest in Panarc, which was party to the mineral property transaction with the Company as detailed in note 5. During 2020, he relinquished his interest in Panarc for shares of Silver Range owned by Panarc.

• (f) Richard Drechsler is the Company’s Vice-President of Communications. He controls Drechsler Consulting Ltd. (“Drechsler Consulting”), which provides the Company with management and administrative services.

28

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

11. Related party payables and transactions (continued)

The aggregate value of transactions and outstanding balances with key management personnel and Directors and entities over which they have control or significant influence were as follows:

		Transactions	Transactions
		for the three	for the three	Balances	Balances
		months ended	months ended	outstanding	outstanding
		March 31,	March 31,	March 31,	December	31,
		2021	2020	2021	2020
		$	$	$	$
Archer Cathro
- geological services		605	526	115		12,362
-rent and administration		13,012	9,584	4,400		2,919
		13,617	10,110	4,515		15,281
Yeadon Law Corp.	(1)	20,826	14,406	21,648		11,580
DBM CPA		8,300	7,300	21,950		13,000
Ian Talbot		10,500	10,500	-		3,675
Paladin	(2)(3)	38,542	34,530	2,692		1,968
Mike Power		-	-	3,306		-
Drechsler Consulting		3,825	4,500	803		-
		95,610	81,346	54,914		45,504
(1) Includes $6,000 in share issue costs for the three		months ended March 31,	2021 (2020 - $4,500 prepaid).

(2) Includes geological services (w ithin survey and consulting) of $5,712 for the three months ended March 31, 2021 (2020 - $4,324).

(3) As at March 31, 2021, an additional $17,719 has been accrued and included w ithin commitment to issue shares (December 31, 2020 - $17,719).

All related party balances are unsecured and are due within thirty days without interest. The related party transactions do not include expense reimbursements or recoverable sales tax amounts that are included in the year end related party payable balances.

The transactions with the key management personnel and Directors are included in general and administrative expenses as follows:

• (a) Consulting fees

• Includes the consulting fees paid to the Company’s president and CEO, Mike Power, charged to the Company by Paladin.

• (b) Management, administration and corporate development fees

• Includes the services of Company’s COO, Ian Talbot.

• Includes the services of Company’s Vice President of Communications, Richard Drechsler, charged to the Company by Drechsler Consulting.

• Includes charges by Archer Cathro for administrative personnel.

• (c) Office rent

• Charged by Archer Cathro.

• (d) Professional fees

• Includes the legal services of the Company’s Secretary, Glenn Yeadon, charged to the Company by Yeadon Law Corp.

• Includes the accounting and tax services of the Company’s CFO, Larry Donaldson, charged to the Company by DBM CPA.

• (e) Mineral property examination costs

• Includes charges by Paladin.

29

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

12. Income taxes

Income tax recovery varies from the amount that would be computed from applying the combined federal and provincial income tax rate to income (loss) before income taxes as follows:

	March	31,	March 31,
	2021		2020
	$		$
Loss for the period before income taxes	(74,632)		(225,542)
Statutory Canadian corporate tax rate		27.0%	27.0%
Anticipated income tax recovery		20,151	60,896
Change in tax resulting from:
Unrecognized items for tax purposes		1,227	(16,957)
Tax benefits unrecognized	(21,378)		(43,939)
Net deferred income tax recovery		-	-

The significant components of the Company’s unrecognized deferred tax assets are as follows:

	March 31,	December 31,
	2021	2020
	$	$
Mineral property interests	4,684,000	4,682,000
Marketable securities	(24,000)	(20,000)
Investment tax credits	964,000	964,000
Non-capital loss carry forwards	1,189,000	1,165,000
Share issue costs	8,000	7,000
Unrecognized deferred tax assets	(6,821,000)	(6,798,000)
Net deferred tax assets	-	-

As at March 31, 2021, the Company has unclaimed resource and other deductions in the amount of approximately $21,488,000 (December 31, 2020 - $21,542,000), which may be deducted against future taxable income. These costs are approximately $17,379,000 more than the carrying value of the mineral property interests mainly because of the large impairment charges in both 2018 and 2015. The tax benefit of approximately $4,684,000 on the difference has not been recognized for tax purposes as there is no certainty that there will be adequate taxable income to utilize the deductions.

As at March 31, 2021, the Company has unused non-capital losses of approximately $4,404,000 of which $219,000 will expire in 2031, $576,000 in 2032, $551,000 in 2033, $372,000 in 2034, $303,000 in 2035 and $2,383,000 thereafter. The tax benefit of approximately $1,189,000 on the losses has not been recognized for tax purposes as there is no certainty that there will be adequate taxable income to utilize the losses.

As at March 31, 2021, there are share issue costs totaling approximately $29,000 (December 31, 2020 – $26,000), which have not been claimed for income tax purposes. The tax benefit of approximately $8,000 (December 31, 2020 - $7,000) has not been recognized for tax purposes as there is no certainty that there will be adequate taxable income to utilize the deductions.

As at March 31, 2021, the Company has unused investment tax credits of approximately $1,320,000 (December 31, 2020 - $1,320,000), of which $1,137,000 will expire in 2031, $87,000 in 2032 and $96,000 in 2033. The tax benefit of approximately $964,000 on the credits has not been recognized for tax purposes as there is no certainty that there will be adequate taxable income to utilize the credits.

Income tax attributes are subject to review, and potential adjustments, by tax authorities.

30

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

13. Supplemental cash flow information

Changes in non-cash operating working capital during the three months ended March 31, 2021 and March 31, 2020 were comprised of the following:

were comprised of the following:
	March	31,	March	31,
	2021		2020
	$		$
Receivables and prepayments		16,359		(3,130)
Accounts payable and accrued liabilities		(1,035)		1,428
Accounts payable to related parties		9,660		10,152
Net change		24,984		8,450

The Company incurred non-cash financing and investing activities during the three months ended March 31, 2021 and March 31, 2020, which were comprised of the following:

and March 31, 2020, which were comprised of the following:
	March	31,	March 31,
	2021		2020
	$		$
Non-cash financing activities:
Lease payments included in accounts payable and accrued liabilities (note 14)		4,500	4,500
Shareissue costsincludedinaccounts payabletorelated parties		6,000	-
		10,500	4,500
Non-cash investing activities:
Depreciation included in mineral property interests (note 6)		4,446	4,445
Deferred mineral property costs included in accounts payable and related party payables		24,367	113
Value ofcommitment toissue sharesincludedin mineralpropertyinterests (note 9)		2,501	2,330
		31,314	6,888

During the three months ended March 31, 2021 and March 31, 2020, no amounts were paid for interest or income tax expenses.

31

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

14. Lease liability

Equipment lease

On April 30, 2019, the Company entered into a lease to purchase agreement with a third party for certain exploration equipment situated on its Silver Range project (note 7).

A reconciliation of the carrying amount of the lease liability as at March 31, 2021 and December 31, 2020, and for the period/year then ended is shown below. The lease commenced on April 30, 2019 and has a term of 4.5 years to November 30, 2023.

(1)	March 31, 2021 $ December 31, 2020 $
	Balance, beginning of period/year 48,933 64,432 Lease payments (4,500) (18,000) Lease interest (finance costs) 519 2,501
	Balance, end ofperiod/year 44,952 48,933
	Current portion of lease liability 18,000 18,000 Non-current portion of lease liability 26,952 30,933
	44,952 48,933

• (1) As at March 31, 2021, lease payments totalling $4,500 are included within accounts payable and accrued liabilities (December 31, 2020 - $nil).

As at March 31, 2021, the total undiscounted amount of the estimated future cash flows to settle the Company’s lease liability over the remaining lease term is $48,000.

The Company’s minimum annual commitments are as follows:

iability over the remaining lease term is $48,000. The Company’s minimum annual commitments are as follows:
	Total
	commitment
Fiscalyear	$
2021 (remaining)	13,500
2022	18,000
2023	16,500
Undiscounted amount of lease liability	48,000
Future finance costs	(3,048)
	44,952

32

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

15. Financial risk management

Capital management

The Company is a junior resource exploration company and considers items included in shareholders’ equity as capital. The Company has no debt and does not expect to enter into debt financing. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of underlying assets. In order to maintain or adjust its capital structure, the Company may issue new shares, purchase shares for cancellation pursuant to normal course issuer bids or make special distributions to shareholders. The Company is not subject to any externally imposed capital requirements and does not presently utilize any quantitative measures to monitor its capital. There were no changes to the Company’s approach to capital management during the three months ended March 31, 2021. The Company’s capital structure as at March 31, 2021, is comprised of shareholders’ equity of $5,642,165 (December 31, 2020 - $5,109,489).

The Company currently has no source of revenues. In order to fund future projects and pay for administrative costs, the Company will spend its existing working capital and raise additional funds as needed. The Company's ability to continue as a going concern on a long-term basis and realize its assets and discharge its liabilities in the normal course of business rather than through a process of forced liquidation is primarily dependent upon its ability to sell or option its mineral properties and its ability to borrow or raise additional financing from equity markets.

Financial instruments - fair value

The Company’s financial instruments consist of cash, other receivables, marketable securities, reclamation deposits, accounts payable and accrued liabilities, and accounts payable to related parties.

The carrying value of other receivables, accounts payable and accrued liabilities, and accounts payable to related parties approximated their fair value because of the short-term nature of these instruments.

Financial instruments measured at fair value on the statements of financial position are summarized into the following fair value hierarchy levels:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

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

	Level 1	Level 2	Level 3		Total
	$	$	$		$
March 31, 2021
Cash	845,171	-		-	845,171
Marketable securities	633,825	31,453		-	665,278
Reclamation deposits	35,308	-		-	35,308
	1,514,304	31,453		-	1,545,757
December 31, 2020
Cash	235,603	-		-	235,603
Marketable securities	595,172	41,273		-	636,445
Reclamation deposits	35,208	-		-	35,208
	865,983	41,273		-	907,256

33

Silver Range Resources Ltd.

Notes to the Condensed Interim Consolidated Financial Statements Unaudited – Prepared by Management

For the three months ended March 31, 2021 and March 31, 2020

15. Financial risk management (continued)

Financial instruments - risk

The Company’s financial instruments can be exposed to certain financial risks, including credit risk, interest rate risk, liquidity risk and market and currency risk.

(a) Credit risk

The Company is exposed to credit risk by holding cash. This risk is minimized by holding the funds in Canadian banks or with Canadian governments. The Company has minimal receivables exposure as its refundable credits are due from the Canadian government.

(b) Interest rate risk

The Company is exposed to interest rate risk because of fluctuating interest rates. Fluctuations in market rates do not have a significant impact on the Company’s operations. For the three months ended March 31, 2021, every 1% fluctuation in interest rates would have impacted loss for the period by approximately $2,000 (2020 - $1,000) before income taxes.

(c) Liquidity risk

Liquidity risk is the risk that the Company is unable to meet its financial obligations as they come due. The Company manages this risk by careful management of its working capital to ensure its expenditures will not exceed available resources.

(d) Market risk

The Company is exposed to market risk because of the fluctuating values of its marketable securities. The Company has no control over these fluctuations and does not hedge its investments. Based on the March 31, 2021 portfolio value, every 10% increase or decrease in the share price of the securities would have impacted loss for the period by approximately $7,000 (2020 - $6,000) before income taxes.

(e) Currency risk

The Company is exposed to currency risk because it holds funds and receivables in United States Dollars (“USD”), which, because of fluctuating exchange rates can create gains or losses at the time the funds are converted to Canadian dollars. The Company has no control over these fluctuations and does not hedge its foreign currency holdings. Based on its March 31, 2021 USD holdings, every 5% increase or decrease in the exchange rate would have impacted loss for the period by approximately $1,000 (2020 - $2,000) before income taxes.

16. Event after the reporting period

On May 3, 2021, the Company acquired 2,212,389 common shares from Trifecta representing consideration of $250,000 in relation to the Property Purchase Agreement on the Yuge property under option by the Company to Trifecta (note 6(d)(ix)).

34