Silver Viper Minerals Corp. — Interim / Quarterly Report 2021

Nov 25, 2021

SILVER VIPER MINERALS CORP.

Condensed Consolidated Interim Financial Statements (Expressed in Canadian Dollars - Unaudited)

September 30, 2021

Notice to Reader

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

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

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

SILVER VIPER MINERALS CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian Dollars - Unaudited) As at

	September 30, 2021	December 31, 2020
ASSETS Current Cash $ Taxes receivable Prepaid expenses Taxes receivable Exploration and evaluation assets(Note 5) Equipment(Note 4) Deposits $	3,247,828 $ 19,440 128,493 3,395,761 1,778,589 292,013 70,228 19,098 5,555,689 $	2,518,873 19,680 93,062
		2,631,615 1,287,385 168,243 83,419 19,098
		4,189,760
LIABILITIES AND SHAREHHOLDERS’ EQUITY Current Accounts payable and accrued liabilities (Note 9) $ Shareholders’ equity Share capital (Note 6) Reserves (Note 6) Deficit $	471,858 $ 23,312,281 2,697,535 (20,925,985) 5,083,831 5,555,689 $	290,317
		17,099,017 905,508 (14,105,082)
		3,899,443
		4,189,760

Nature and continuance of operations (Note 1)

Approved and authorized on behalf of the board on November 25, 2021:

/s/ Steve Cope Director Steve Cope	/s/ Ross Wilmot Director Ross Wilmot

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

SILVER VIPER MINERALS CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Expressed in Canadian Dollars - Unaudited)

	Three months ended September 30, 2021 2020	Three months ended September 30, 2021 2020	Nine months ended September 30, 2021 2020	Nine months ended September 30, 2021 2020
EXPLORATION EXPENSES Drilling $ General exploration Geological (Note 9) Assay GENERAL EXPENSES Consulting fees (Note 9) Depreciation (Note 4) Filing fees Foreign exchange loss (gain) Investor relations (Note 9) Management fees (Note 9) Office and administration (Note 9) Professional fees Share-based payments (Notes 6 and 9) Loss before other income Interest income Loss and comprehensive loss for the period $	916,380 $ 248,606 46,350 128,447 1,339,783 - 6,214 11,501 31,459 179,744 90,398 73,494 710 - 393,520 (1,733,303) 829 (1,732,474) $	1,788,124 $ 249,474 36,500 146,947 2,221,045 2,167 2,125 6,287 (29,740) 161,566 55,707 59,867 15,508 - 273,487 (2,494,532) 12,511 (2,482,021) $	2,515,456 $ 753,475 122,633 388,442 3,780,006 110,500 17,760 37,645 102,727 485,553 216,116 213,044 41,842 1,819,985 3,045,172 (6,825,178) 4,275 (6,820,903) $	3,488,722 709,484 107,167 412,944
				4,718,317
				10,835 3,662 46,899 28,711 349,683 160,791 171,245 34,180 472,729
				1,278,735
				(5,997,052) 29,542
				(5,967,510)
Basic and diluted lossper common share $	(0.02) $	(0.04) $	(0.08) $	(0.09)
Weighted average number of common shares outstanding	87,554,611	63,367,539	87,554,611	65,102,064

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

SILVER VIPER MINERALS CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Expressed in Canadian Dollars - Unaudited)

	Common Shares	ShareCapital	Reserves	Deficit	Total Shareholders’ Equity
Balance, December 31, 2019 Options exercised Warrants exercised Issuance of common shares Share issuance costs Share-based payments Loss and comprehensive loss Balance, September 30, 2020 Options exercised Warrants exercised Loss and comprehensive loss Balance, December 31, 2020 Options exercised Warrants exercised Share-based payments Issuance of common shares Share issuance costs Loss and comprehensive loss Balance, September 30, 2021	58,810,301 $ 200,000 5,610,500 14,227,155 - - - 78,847,956 400,000 2,417,500 - 81,665,456 200,000 498,889 - 12,765,957 - - 95,130,302 $	9,351,975 $ 112,115 1,967,875 5,121,775 (456,766) - - 16,096,974 155,918 846,125 - 17,099,017 77,958 249,445 - 6,000,000 (114,139) - 23,312,281 $	536,812 $ (48,115) - - - 472,729 - 961,426 (55,918) - - 905,508 (27,958) - 1,819,985 - - - 2,697,535 $	(6,241,795) $ - - - - - (5,967,510) (12,209,305) - - (1,895,777) (14,105,082) - - - - - (6,820,903) (20,925,985) $	3,646,992 64,000 1,967,875 5,121,775 (456,766) 472,729 (5,967,510)
					4,849,095 100,000 846,125 (1,895,777)
					3,899,443 50,000 249,445 1,819,985 6,000,000 (114,139) (6,820,903)
					5,083,831

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

SILVER VIPER MINERALS CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(Expressed in Canadian Dollars - Unaudited)

Nine months ended September30,2021	Nine months ended September30,2020
CASH FLOWS FROM OPERATING ACTIVITIES Loss for the period $ (6,820,903) $ Items not involving cash: Depreciation 17,760 Share-based payments 1,819,985 Changes in non-cash working capital items: Taxes receivable (490,964) Accounts payable and accrued liabilities 181,541 Prepaid expenses (35,431) Cash used in operating activities (5,328,012) CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of exploration and evaluation assets (123,770) Acquisition of equipment (4,569) Cash used in investing activities (128,339) CASH FLOWS FROM FINANCING ACTIVITIES Private placement, gross proceeds 6,000,000 Share issuance costs (114,139) Exercise of options 50,000 Exercise of warrants 249,445 Cash provided by financing activities 6,185,306 Change in cash during the period 728,955 Cash, beginning of period 2,518,873 Cash, end of period $ 3,247,828 $	(5,967,510) 3,662 472,729 (673,719) 401,221 (101,764)
	(5,865,381)
	(102,593) (70,378)
	(172,971)
	5,121,775 (456,766) 64,000 1,967,875
	6,696,884
	658,532 3,587,212
	4,245,744

Supplemental disclosure with respect to cash flows (Note 8)

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

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

1. NATURE AND CONTINUANCE OF OPERATIONS

Silver Viper Minerals Corp. (the “Company”) was incorporated under the laws of the Province of British Columbia, Canada on April 26, 2016. The Company completed an Initial Public Offering (“IPO”) on September 27, 2017 and the Company’s common shares were listed for trading on the TSV Venture Exchange (“TSV-V”). The Company’s principal business activities include the acquisition and exploration of mineral properties in Mexico.

The head office of the Company is located at Suite 1130 - 1055 West Hastings Street, Vancouver, BC, Canada, V6C 2E9. The registered address and records office of the Company is located at Suite 1700, Park Place, 666 Burrard Street, Vancouver, BC, Canada V6C 2X8.

These condensed consolidated interim financial statements were authorized for issue by the Company’s Board of Directors on November 25, 2021.

These condensed consolidated interim financial statements have been prepared with the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business rather than through a process of forced liquidation. The Company has been successful in raising funds from incorporation to date, but will require additional funding for continued exploration and working capital purposes in future periods. The Company had incurred a loss of $6,820,903 for the nine months ended September 30, 2021 and accumulated losses of $20,925,985 as of September 30, 2021. These material uncertainties may cast significant doubt as to the Company’s ability to continue as a going concern.

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, economics, 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 business or results of operations at this time.

2. BASIS OF PREPARATION

These condensed consolidated interim financial statements have been prepared using accounting policies consistent with IFRS as issued by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”).

These condensed consolidated interim financial statements have been prepared on a historical cost basis, except for financial instruments measured at their fair value. In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting except for cash flow information.

Critical accounting estimates and judgements

The preparation of these condensed consolidated interim financial statements in accordance with IFRS requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported expenses during the period. Actual results could differ from these estimates.

SILVER VIPER MINERALS CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

2. BASIS OF PREPARATION (cont’d…)

Critical accounting estimates and judgements (cont’d…)

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

• a) The recoverability of receivables. The Company considers collectability and historical collection rates in estimating the recoverable amount of receivables. If the recoverable amount of receivables is estimated to be less than the carrying amount, the carrying amount of receivables is reduced to the recoverable amount and an impairment loss is recognized in profit or loss for the period.

• b) The carrying value and the recoverability of exploration and evaluation assets, which are included in the statements of financial position. The cost model is utilized and the carrying value of the exploration and evaluation assets is based on the expenditures incurred. At every reporting period, management assesses the potential impairment which involves assessing whether or not facts or circumstances exist that suggest the carrying amount exceeds the recoverable amount.

• c) The inputs used in calculating the fair value for share-based payments expense included in profit or loss and sharebased share issuance costs included in shareholders’ equity. The share-based payments expense is estimated using the Black-Scholes options-pricing model as measured on the grant date to estimate the fair value of stock options. This model involves the input of highly subjective assumptions, including the expected price volatility of the Company’s common shares, the expected life of the options, and the estimated forfeiture rate.

• d) The valuation of shares issued in non-cash transactions. Generally, the valuation of non-cash transactions is based on the value of the goods or services received. When this cannot be determined, it is based on the fair value of the non-cash consideration. When non-cash transactions are entered into with employees and those providing similar services, the non-cash transactions are measured at the fair value of the consideration given up using market prices.

• e) The recognition of deferred tax assets. The Company considers whether the realization of deferred tax assets is probable in determining whether or not to recognize these deferred tax assets.

3. SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation

These condensed consolidated interim financial statements include the accounts of the Company and its controlled subsidiaries (Note 9). Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial results of subsidiaries are included in the condensed consolidated interim financial statements from the date that control commences until the date that control ceases. All significant intercompany balances and transactions have been eliminated upon consolidation.

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

3. SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Exploration and evaluation assets

The Company is currently in the exploration stage with its mineral property interest. Exploration and evaluation assets include the costs of acquiring concessions, and the fair value, upon acquisition, of mineral properties acquired in a business combination. Costs incurred before the Company has obtained the legal rights to explore an area will be recognized in the statement of loss and comprehensive loss.

Exploration and evaluation expenditures are expensed in the period they are incurred except for expenditures associated with the acquisition of exploration and evaluation assets through a business combination or an asset acquisition. Significant property acquisition costs are capitalized only to the extent that such costs can be directly attributed to an area of interest where it is considered likely to be recoverable by future exploitation or sale.

Taxes receivable

Current taxes receivable consists of Goods and Services Tax (“GST”) receivables generated on the purchase of supplies and services and are refundable from the Canadian government. Non-current taxes receivable consists of Value Added Tax (“VAT”) receivables generated on the purchase of supplies and services and are receivable from the Mexican government. The Company classified the VAT receivables as non-current as it does not expect collection to occur within the next year. The VAT refund process in Mexico requires a significant amount of information and follow-up and the timing of collection of VAT receivables is uncertain. The Company believes that taxes receivable balances are fully recoverable and has not provided an allowance.

Equipment

Equipment is recorded at cost less depreciation, and any impairments and is depreciated over its estimated useful life using the straight line method at a rate of 20% per annum for equipment, 25% for transportation equipment and 50% for computer equipment. Cost comprises the fair value of consideration given to acquire or construct an asset and includes the direct charges associated with bringing the asset to the location and condition necessary for putting it into use. When parts of equipment have different useful lives, they are accounted for as separate items (major components) of equipment. The cost of major overhauls of parts of equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of equipment are recognized in profit or loss as incurred.

Impairment

At the end of each reporting period, the Company’s assets are reviewed to determine whether there is any indication that those assets may be impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell (“FVLCS”) and value in use (“VIU”). FVLCS is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than it’s carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in profit or loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

3. SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Impairment (cont’d…)

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

Warrants issued in equity financing transactions

The Company engages in equity financing transactions to obtain the funds necessary to continue operations and explore and evaluate mineral properties. These equity financing transactions may involve issuance of common shares or units. A unit comprises a certain number of common shares and a certain number of share purchase warrants. Depending on the terms and conditions of each equity financing agreement, the warrants are exercisable into additional common shares prior to expiry at a price stipulated by the agreement. Warrants that are part of units are valued based on the residual value method and included in share capital with the common shares that were concurrently issued. Warrants that are issued as payment for an agency fee or other transaction costs are accounted for as share-based payments.

Provision for environmental rehabilitation

The Company recognizes liabilities for statutory, contractual, constructive or legal obligations associated with the retirement of exploration and evaluation assets and equipment, when those obligations result from the acquisition, construction, development or normal operation of the assets. The net present value of future rehabilitation cost estimates arising from the decommissioning of plant and other site preparation work is capitalized to the related assets along with a corresponding increase in the rehabilitation provision in the period incurred. Discount rates using a pretax rate that reflect the time value of money are used to calculate the net present value. The rehabilitation asset is depreciated on the same basis as the related assets.

The Company’s estimates of reclamation costs could change as a result of changes in regulatory requirements, discount rates and assumptions regarding the amount and timing of the future expenditures. These changes are recorded directly to the related assets with a corresponding entry to the rehabilitation provision. The Company’s estimates are reviewed annually for changes in regulatory requirements, discount rates, effects of inflation and changes in estimates.

Changes in the net present value, excluding changes in the Company’s estimates of reclamation costs, are charged to profit or loss for the period.

The Company has no material restoration, rehabilitation and environmental provisions for the periods presented.

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

3. SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Financial instruments

IFRS 9 sets out requirements for recognizing and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items.

• a) Classification and measurement of financial assets and liabilities

A financial asset is classified as measured at: amortized cost; fair value through other comprehensive income (“FVOCI”) or fair value through profit or loss (“FVTPL”). The classification of financial assets depends on the purpose for which the financial assets were acquired. The Corporation's financial assets, which consist primarily of cash classified as FVTPL, and receivables classified at amortized cost. Financial assets at amortized cost are initially recognized at fair value and subsequently carried at amortized cost less any impairment. They are classified as current assets or non-current assets based on their maturity date.

The Company classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. The Company’s accounting policy for each category is as follows:

Fair value through profit and loss: This category comprises derivatives, or liabilities acquired or incurred principally for the purpose of selling or repurchasing it in the near term. They are carried in the statement of financial position at fair value with changes in fair value recognized through profit or loss.

Amortized cost: This category includes accounts payable and accrued liabilities, all of which are recognized at amortized cost.

• b) Impairment of financial assets

An ‘expected credit loss’ (“ECL”) model applies to financial assets measured at amortized cost, contract assets and debt investments at FVOCI, but not to investments in equity instruments. The Corporation's financial assets are measured at amortized cost and subject to the ECL model. The adoption of the ECL impairment model had a negligible impact on the carrying amounts of the Company’s financial assets on the transition date given that receivables are current and have minimal level of default.

Foreign exchange

The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Company. The functional currency for all entities within the corporate group is the Canadian dollar. The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates .

Transactions in currencies other than the Canadian dollar are recorded at exchange rates prevailing on the dates of the transactions. At the end of each reporting period, the monetary assets and liabilities of the Company that are denominated in foreign currencies are translated at the rate of exchange at the statement of financial position date while non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in profit or loss.

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

3. SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Share-based payments

The Company grants stock options to acquire common shares of the Company to directors, officers, employees and consultants.

The fair value of stock options granted to directors, officers, employees and consultants is measured on the date of grant, using the Black-Scholes option pricing model, and is recognized over the vesting period as expense, with a corresponding increase in reserves. Consideration paid for the shares on the exercise of stock options is credited to share capital.

In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, they are measured at the fair value of the share-based payments. Otherwise, share-based payments are measured at the fair value of the goods or services received.

Earnings (loss) per share

Basic earnings (loss) per share is calculated using the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated by adjusting the loss attributable to equity shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive instruments. The calculation of diluted earnings (loss) per share assumes that the proceeds to be received on the exercise of dilutive instruments are used to repurchase common shares at the average market price during the period. In periods where a loss is reported, diluted loss per share is the same as basic loss per share because the effects of potentially dilutive common shares would be anti-dilutive.

Income taxes

Income tax on the profit or loss for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in shareholders’ equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period end, adjusted for amendments to tax payable with regards to previous periods.

Deferred tax is recorded by providing for temporary differences, between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that affect neither accounting or taxable loss; and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amounts of assets and liabilities, using tax rates enacted or substantively enacted at the statement of financial position date.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, it does not recognize the asset.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

3. SIGNIFICANT ACCOUNTING POLICIES (cont’d…)

Leases

At inception of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Leases of right-of-use assets are recognized at the lease commencement date at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined, and otherwise at the Company’s incremental borrowing rate. At the commencement date, a right-of-use asset is measured at cost, which is comprised of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any decommissioning and restoration costs, less any lease incentives received.

Each lease payment is allocated between repayment of the lease principal and interest. Interest on the lease liability in each period during the lease term is allocated to produce a constant periodic rate of interest on the remaining balance of the lease liability. Except where the costs are included in the carrying amount of another asset, the Company recognizes in profit or loss (a) the interest on a lease liability and (b) variable lease payments not included in the measurement of a lease liability in the period in which the event or condition that triggers those payments occurs. The Company subsequently measures a right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses; and adjusted for any remeasurement of the lease liability. Right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term, except where the lease contains a bargain purchase option a right-of-use asset is depreciated over the asset’s useful life.

The Company has elected not to recognize the right-of-use assets and lease liabilities for short-term leases that have a lease term of twelve months or less, or for leases of low value. The payments for such leases are recognized in the statement of loss and comprehensive loss on a straight-line basis over the lease term. For the nine months ended September 30, 2021, rent expense included in office and administration of $76,867 (2020 - $67,806) has been incurred.

SILVER VIPER MINERALS CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

(Expressed in Canadian Dollars - Unaudited)

4. EQUIPMENT

		Equipment		Transportation		Computer		Total
				Equipment		Equipment
Cost
At December 31, 2019	$	11,382	$	-	$	1,321	$	12,703
Additions / (disposals)		5,301		64,759		-		70,060
At September 30, 2020		16,683		64,759		1,321		82,763
Additions / (disposals)		11,781		-		-		11,781
At December 31, 2020		28,464		64,759		1,321		94,544
Additions / (disposals)		829		-		3,740		4,569
At September 30, 2021	$	29,293	$	64,759	$	5,061	$	99,113
Accumulated Depreciation
At December 31, 2019	$	1,196	$	-	$	679	$	1,875
Additions / (disposals)		1,731		1,357		512		3,600
At September 30, 2020		2,927		1,357		1,191		5,475
Additions / (disposals)		1,192		4,328		130		5,650
At December 31, 2020		4,119		5,685		1,321		11,125
Additions / (disposals)		4,253		12,689		818		17,760
At September 30, 2021	$	8,372	$	18,374	$	2,139	$	28,885
Net Book Value
At December 31, 2020	$	24,345	$	59,074	$	-	$	83,419
At September 30, 2021	$	20,921	$	46,385	$	2,922	$	70,228

5. EXPLORATION AND EVALUATION ASSETS

Rubi-Esperanza Claims, La Virginia

On June 25, 2018 the Company entered into option agreements (the “Option Agreements”) to acquire the RubiEsperanza group of mineral concessions in Sonora, Mexico. The Option Agreements grant the Company the right to acquire 100% ownership of three prospective claims. On June 21, 2019, an addendum to the Option Agreements was signed (“Amended Option Agreements”), resulting in an overall reduction in cash payments. The table below outlines the payments in both the Option Agreements and the Amended Option Agreements. The Company will make the following cash payments per the Amended Option Agreements over the next five anniversaries of the date of the Option Agreements starting on June 25, 2019 as follows

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

5. EXPLORATION AND EVALUATION ASSETS (cont’d…)

Rubi-Esperanza Claims, La Virginia (cont’d…)

	Option Agreements	Amended Option Agreements
First anniversary	US$190,000	US$50,000 (paid $65,650)
Second anniversary	US$500,000	US$75,000 (paid $102,593)
Third anniversary	US$1,000,000	US$100,000 (paid $123,770)
Fourth anniversary	US$2,800,000	US$200,000
Fifth anniversary	US$Nil	US$2,575,000*
Total	US$4,490,000	US$3,000,000

• Payment will comprise of US$1,200,000 in cash, and the remainder in cash or shares at the Company’s direction.

Claim owners will retain a 2% net smelter return royalty, which may be purchased by the Company for US$2,000,000 within five years of the effective date of the option agreement, or for US$3,000,000 after the fifth anniversary. The option agreement does not specify a work commitment.

6. SHARE CAPITAL AND RESERVES

Authorized

Unlimited number of common shares without par value Unlimited number of preferred shares without par value

Issued

As at September 30, 2021 there were nil (December 31, 2020 – nil) common shares held in escrow. These common shares were being released from escrow in tranches over 36 months from completion of the IPO.

The Company completed a private placement on June 3, 2020 and raised gross proceeds of $5,121,775 through the sale of 14,227,155 units at a price of $0.36 per unit. Each unit consists of one common share of the Company and one half of one share purchase warrant. Each whole warrant is exercisable into one common share of the Company at a price of $0.50 per share for a period of two years. In connection with the issuance, cash finders’ fees of $218,770 and $237,996 of legal, regulatory, and filing fees were paid.

The Company completed the first tranche of a private placement on June 1, 2021 and raised gross proceeds of $4,567,019 through the sale of 9,717,061 units at a price of $0.47 per unit. Each unit consists of one common share of the Company and one half of one share purchase warrant. Each whole warrant is exercisable into one common share of the Company at a price of $0.65 per share for a period of two years. In connection with the issuance, cash finders’ fees of $10,575 were paid.

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

6. SHARE CAPITAL AND RESERVES (cont’d…)

Issued (cont’d…)

The Company completed the final tranche of a private placement on June 10, 2021 and raised gross proceeds of $1,432,981 through the sale of 3,048,896 units at a price of $0.47 per unit. Each unit consists of one common share of the Company and one half of one share purchase warrant. Each whole warrant is exercisable into one common share of the Company at a price of $0.65 per share for a period of two years. In connection with the issuance, cash finders’ fees of $64,801 and $38,763 of legal, regulatory, and filing fees were paid.

Stock options and warrants

The Company has a plan to grant stock options to directors, officers, employees and consultants of the Company. Under the plan, the Board of Directors has the discretion to issue the equivalent of up to 10% of the issued and outstanding shares of the Company from time to time. Stock options are granted with a term of up to ten years and are exercisable at a price that is not less than the market price on the date granted.

Vesting terms are determined at the discretion of the Board of Directors. Options issued to consultants providing investor relations services must vest in stages over a minimum of twelve months with no more than one-quarter of the options vesting in any three-month period.

During the nine months ended September 30, 2021, the Company granted 3,120,000 stock options (2020 - 1,965,000) to employees, officers, and directors with a fair value of $0.58 (2020 - $0.24) per option. The Company recorded share-based payments of $1,819,985 (2020 - $472,729) for the options vesting during the period.

The following weighted average assumptions were used for the Black-Scholes valuation of stock options granted:

	September 30, 2021	September 30, 2020
Risk free interest rate	0.82%	1.07%
Expected dividend yield	0%	0%
Annualized stock price volatility	101.30%	102%
Expected life of options	5 years	5 years
Expected forfeiture rate	0%	0%

The following stock options were outstanding as of September 30, 2021:

Number of Stock
Options	Exercise Price	Expiry Date
2,870,000	$0.25	February 9, 2023
1,765,000	0.32	February 28, 2025
3,120,000	0.78	June 10, 2026
7,755,000

SILVER VIPER MINERALS CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

(Expressed in Canadian Dollars - Unaudited)

6. SHARE CAPITAL AND RESERVES (cont’d…)

Stock options and warrants (cont’d…)

The following warrants were outstanding at September 30, 2021:

Number of Warrants	Exercise Price	Expiry Date
6,586,688	$0.50	June 3, 2022
4,858,529	0.65	June 1, 2023
1,524,445	0.65	June 10, 2023
12,969,662

Stock option and warrant transactions are summarized as follows:

	Number Warrants Weighted average exercise price	Number Stock Options Weighted average exercise price
Outstanding, December 31, 2019 Granted Exercised Forfeited Outstanding, September 30, 2020 Granted Exercised Forfeited Outstanding, December 31, 2020 Granted Exercised Forfeited Outstanding, September 30, 2021	8,000,000 $0.35 7,113,577 0.50 (5,610,500) 0.35 - 9,503,077 0.46 - - (2,417,500) 0.35 - - 7,085,577 0.50 6,382,974 0.65 (498,889) 0.50 - - 12,969,662 $0.57	3,720,000 $0.25 1,965,000 0.32 (200,000) 0.32 (250,000) 0.25 5,235,000 0.27 - - (400,000) 0.25 - - 4,835,000 0.28 3,120,000 0.78 (200,000) 0.25 - - 7,755,000 $0.48
Exercisable, September 30, 2021	12,969,662 $0.57	7,755,000 $0.48

7. CAPITAL MANAGEMENT

The Company defines its capital as shareholders’ equity. The Board of Directors does not establish quantitative return on capital criteria for management due to the nature of the Company’s business. The Company may invest its capital in liquid investments to obtain adequate returns. The investment decision is based on cash management to ensure working capital is available to meet the Company’s short-term obligations while maximizing liquidity and returns on unused capital. The Company does not pay dividends. The Company is not subject to any externally imposed capital requirements. There have been no changes to the Company’s approach to capital management during the period ended September 30, 2021.

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

7. CAPITAL MANAGEMENT (cont’d…)

The Company raises capital to fund its corporate and exploration costs and other obligations through the sale of its common shares or units consisting of common shares and warrants in order to operate its business and safeguard its ability to continue as a going concern. Although the Company’s management has been successful in raising funds in the past through issuance of share capital, it is uncertain whether it will be able to continue this financing due to uncertain economic conditions.

8. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

Non-cash transactions during the nine months ended September 30, 2021 included options exercised with an initial fair value of $27,958 (2020 - $48,115).

9. RELATED PARTY TRANSACTIONS

The condensed consolidated interim financial statements consist of the Company and its subsidiaries listed in the following table:

		Proportion of
	Country of	Ownership
Name of Subsidiary	Incorporation	Interest	Principal Activity
SV Plata Servicios S.A. de C.V.	Mexico	100%	Mineral exploration
SV Minerales S.A. de C.V.	Mexico	100%	Mineral exploration

Key management personnel are individuals responsible for planning, directing and controlling the activities of the Company and include all directors and officers.

Compensation paid or payable to key management personnel for services rendered are as follows:

		For the nine months ended		For the nine months ended
		September 30, 2021		September 30, 2020
Management fees	$	153,300	$	112,500
Share-based payments		408,330		120,287
Total	$	561,630	$	232,787

SILVER VIPER MINERALS CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

9. RELATED PARTY TRANSACTIONS (cont’d…)

Other related party transactions are as follows:

		For the nine months ended		For the nine months ended
		September 30, 2021		September 30, 2020
Investor relations *	$	46,615	$	45,584
Management fees *		62,816		48,291
Office and administration *		158,957		133,195
Consulting*		10,500		-
Geological consulting fees		46,133		39,667
Share-based payments		349,997		138,330
Total	$	675,018	$	405,067

• Fees were paid to a management service company controlled by a director of the Company that provides office space, a corporate secretary, investor relations, a CFO, accounting and administration staff to the Company on a shared cost basis.

Included in accounts payable and accrued liabilities as at September 30, 2021 is $11,703 (December 31, 2020 - $34,048) due to directors or officers or companies controlled by directors.

10. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are described below.

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

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

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

Fair value of financial instruments

Cash is carried at fair value using a level 1 fair value measurement. The carrying values of taxes receivables, accounts payable and accrued liabilities approximate their fair values due to the short-term maturity of the financial instruments.

Concentrations of business risk

The Company maintains substantially all of its cash with a major Canadian financial institution. Deposits held with this institution may exceed the amount of insurance provided on such deposits.

Credit risk

The Company is exposed to credit risk only with respect to uncertainties as to timing and amount of collectability of receivables. The Company believes its credit risk arises from VAT and GST, which are recoverable from the governing body in Mexico and Canada, respectively. As the Company’s exploration operations are conducted in Mexico, the Company’s operations are also subject to the economic risks associated with those countries.

SILVER VIPER MINERALS CORP. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (Expressed in Canadian Dollars - Unaudited)

10. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (cont’d…)

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure.

Foreign exchange risk

A portion of the Company’s operational transactions are originally denominated in Mexican Pesos. Accordingly, the results of the Company’s operations and comprehensive loss as stated in Canadian dollars will be impacted by exchange rate fluctuations. The Company does not hedge its exposures to movements in the exchange rates at this time.

The Company’s exposure to foreign currency risk is on its cash, taxes receivable, and accounts payable and accrued liabilities. At September 30, 2021, a hypothetical change of 10% in the foreign exchange rate between the Canadian dollar and Mexican Peso would have an effect of $133,800 on profit and loss.

Interest rate risk

The Company limits its exposure to interest rate risk by holding cash deposits at major Canadian financial institutions and accordingly is not subject to significant interest rate risk. At September 30, 2021, a hypothetical change of 1% in the interest rate would have an effect of $31,800 on profit and loss.

Price risk

Mineral prices, in particular gold and silver, are volatile, and have fluctuated sharply in recent periods. The prices are subject to market supply and demand, political and economic factors, and commodity speculation, all of which can interact with one another to cause significant price movement from day to day and hour to hour. These price movements can affect the Company’s ability to operate and to raise financing through the sale of its common shares.

11. SEGMENTED INFORMATION

The Company’s reportable operating segment is the acquisition of mineral properties. The Company’s geographic location is Mexico. Exploration and evaluation assets are $292,013 as of September 30, 2021 (December 31, 2020 - $168,243). Equipment is $70,228 as of September 30, 2021 (December 31, 2020 - $83,419).