Standard Uranium Ltd. — Interim / Quarterly Report 2022

Dec 24, 2021

Condensed Consolidated Interim Financial Statements

October 31, 2021 and 2020

(Expressed in Canadian Dollars - unaudited)

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

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

The accompanying unaudited interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by the entity's auditor.

STANDARD URANIUM LTD. Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian dollars)

	As at
	October31, 2021	As at
	(unaudited)	April 30, 2021
Assets	$	$
Current assets
Cash	3,862,294	1,510,211
Amounts receivable (Note 4)	171,876	288,137
Prepaid expenses (Note 5)	203,405	164,236
Total current assets	4,237,575	1,962,584
Non-current assets
Deposits (Note 6)	379,384	572,896
Exploration and evaluation assets (Note 7)	9,426,602	4,950,295
Total assets	14,043,561	7,485,775
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities	1,052,734	211,010
Flow-through share premium liability (Note 8)	147,693	88,032
Total current liabilities	1,200,427	299,042
Deferred tax liability	148,000	148,000
Total liabilities	1,348,427	447,042
Shareholders' equity
Share capital (Note 9)	15,226,433	8,900,070
Contributed surplus (Note 9)	1,503,119	1,569,500
Deficit	(4,034,418)	(3,430,837)
Total shareholders' equity	12,695,134	7,038,733
Total liabilities and shareholders' equity	14,043,561	7,485,775

Nature of and continuance of operations (Note 1) Commitments (Note 13) Subsequent events (Note 14)

Approved on behalf of the Board on December 24, 2021:

/s/ Jon Bey /s/ Blair Jordan

Jon Bey Blair Jordan

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars - unaudited)

	Three monthsended	Three months endedOctober 31, 2020	Six monthsended	Six months endedOctober 31, 2020
	October 31, 2021	(Restated – Note 3)	October 31, 2021	(Restated – Note 3)
	$	$	$	$
Expenses
Consulting fees (Note 10)	90,500	191,139	192,958	528,781
Filing fees	36,353	54,131	58,508	87,564
General and administrative	154,391	340,029	273,966	589,515
Insurance	7,403	5,038	13,178	7,913
Investor relations	55,932	23,549	92,485	27,778
Professional fees	53,714	19,275	59,555	20,500
Rent (Note 10)	18,911	6,900	30,609	12,245
Share-based compensation (Notes 9, 10)	26,719	-	106,506	840,421
Loss before other income	443,923	640,061	827,765	2,114,717
Other income
Amortization of flow-through share premium liability	(136,152)	(163,980)	(224,184)	(171,674)
Net loss and comprehensive loss	307,771	476,081	603,581	1,943,043
Basic and diluted loss per share	$(0.00)	$(0.01)	$(0.01)	$(0.03)
Weighted average number of shares outstanding– basic and diluted	113,651,148	49,033,714	103,204,804	61,441,254

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity

(Expressed in Canadian dollars - unaudited)

	Share capital
					Deficit
			Subscriptions	Contributed	(Restated
	Number	Amount	received	surplus	–Note 3)	Total
		$	$	$	$	$
Balance, April 30, 2020	38,008,334	1,329,699	812,476	94,500	(1,302,323)	934,352
Common shares issued for cash	42,938,359	6,423,031	(812,476)	1,339,274	-	6,949,829
Common shares issued for property	1,000,000	270,000	-	-	-	270,000
Bonus shares issued	800,000	276,000	-	-	-	276,000
Common share issued on exercise of warrants	5,211,760	312,080	-	(49,140)	-	262,940
Share-based compensation	-	-	-	564,421	-	564,421
Net loss and comprehensiveloss	-	-	-	-	(1,943,043)	(1,943,043)
Balance, October 31, 2020	87,958,453	8,610,810	-	1,949,055	(3,245,366)	7,314,499
Balance, April 30, 2021	92,758,453	8,900,070	-	1,569,500	(3,430,837)	7,038,733
Proceeds from private placement	19,650,645	5,000,000	-	-	-	5,000,000
Flow-through premium liability	-	(283,845)	-	-	-	(283,845)
Share issuance costs	-	(595,389)	-	148,770	-	(446,619)
Common shares issued on exercise of options and warrants	6,807,185	2,205,597	-	(321,657)	-	1,883,940
Share-based compensation	-	-	-	106,506	-	106,506
Net loss and comprehensive loss	-	-	-	-	(603,581)	(603,581)
Balance, October 31, 2021	119,216,283	15,226,433	-	1,503,119	(4,034,418)	12,695,134

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in Canadian dollars - unaudited)

	Sixmonths ended	Sixmonths ended
	October31, 2021	October31, 2020
	$	$
Cash provided by (used in):
Operating activities
Net loss	(603,581)	(1,943,043)
Itemsnot effecting cash:
Share-based compensation	106,506	840,421
Amortizationof flow-through share premium liability	(224,184)	(171,674)
Changes in non-cash working capital items:
Amounts receivable	116,261	(133,645)
Prepaid expenses	(39,169)	49,586
Accounts payable and accrued liabilities	841,724	(133,597)
Net cash provided by (used in) operating activities	197,557	(1,491,952)
Investing activities
Exploration and evaluation assets	(4,476,307)	(2,120,348)
Deposit	193,512	(129,084)
Net cash used in investing activities	(4,282,795)	(2,249,432)
Financing activities
Proceeds from private placement, net of share issuance costs	4,553,381	7,388,949
Proceeds from exercise of options and warrants	1,883,940	262,940
Net cash provided by financing activities	6,437,321	7,651,889
Increase in cash	2,352,083	3,910,505
Cash, beginning	1,510,211	777,059
Cash, ending	3,862,294	4,687,564
Supplemental Disclosures:
Interest paid	-	-
Income taxes paid	-	-
Non-cash Investing Activity:
Shares issued for option payment for exploration and evaluation
assets	-	270,000

1. Nature and continuance of operations

Standard Uranium Ltd. (the "Company") was incorporated in the province of British Columbia on November 20, 2017. The Company is engaged in the exploration and evaluation of resource properties. The Company's registered office is #2200 – 855 West Georgia Street, Vancouver, British Columbia, V6C 3E8.

These consolidated financial statements have been prepared on the assumption that the Company will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations. Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. As at October 31, 2021, the Company has not generated any revenue and has incurred losses since inception. The Company's continuation as a going concern is dependent on its ability to generate future cash flows and/or obtain additional financing. Management intends to finance operating costs over the next twelve months with cash on hand, loans from directors and companies controlled by directors and/or private placements of common stock. There is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These factors indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. These consolidated financial statements do not reflect any adjustments that may be necessary if the Company is unable 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, economies, and financial markets globally, potentially leading to an economic downturn. The Company's operations have not been drastically impacted by the pandemic. Management of the Company continues to monitor the situation and is following the protocols and rules set in place by the provincial and federal governments.

2. Significant accounting policies

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). Accordingly, certain information and footnote disclosure normally included in annual financial statements prepared in accordance with International Financial Reporting Standards ("IFRS") have been omitted or condensed, and therefore these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company's April 30, 2021 audited annual consolidated financial statements and the notes to such financial statements.

These unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly-owned subsidiaries. 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. Inter-company balances and transactions, and any unrealized income and expenses arising from inter-company transactions, are eliminated in preparing the condensed consolidated interim financial statements.

Notes to the Condensed Consolidated Interim Financial Statements For the six months ended October 31, 2021 and 2020 (Expressed in Canadian dollars - unaudited)

2. Significant accounting policies (continued)

Name of subsidiary	Place of incorporation	Ownership interest
Standard Uranium (Saskatchewan) Ltd.	Saskatchewan	100%
Standard Uranium Holdings (Saskatchewan) Ltd.	Canada	100%

These unaudited condensed consolidated interim financial statements are based on the IFRS issued and effective as of December 24, 2021 the date these unaudited condensed consolidated interim financial statements were authorized for issuance by the Company's Board of Directors, and follow the same accounting policies and methods of computation as the most recent annual consolidated financial statements.

3. Effect of voluntary change in accounting policy

Effective May 1, 2020, as permitted under IFRS 6, Exploration for and Evaluation of Mineral Resources, the Company voluntarily changed its accounting policy for its exploration and evaluation ("E&E") expenditures, to capitalize the expenditures to the consolidated statements of financial position, while previously all of the E&E expenditures were expensed in the consolidated statements of loss and comprehensive loss in the year in which they were incurred.

The Company has determined that this voluntary change in accounting policy enhances the reliability of the consolidated financial statements. The Company determined that reflecting the E&E expenditures on the consolidated statements of financial position, and as part of investing activities on the consolidated statement of cash flows, better reflects the economic substance of its operations. The change in accounting policy has been applied retrospectively.

A reconciliation of the prior periods presented from the previously reported amounts to the restated amounts is as follows:

Consolidated Statement of Financial Position as at May 1, 2020

	As previously	Effect of change	As restated
	reported	in accounting	under new
		policy	policy
	$	$	$
Non-current assets
Exploration and evaluation assets	100,000	385,427	485,427
Total assets	960,211	385,427	1,345,638
Shareholders' equity
Deficit	(1,687,750)	385,427	(1,302,323)
Total liabilities and shareholders' equity	(960,211)	385,427	(1,345,638)

Notes to the Condensed Consolidated Interim Financial Statements For the six months ended October 31, 2021 and 2020 (Expressed in Canadian dollars - unaudited)

3. Effect of change in accounting policy (continued)

Consolidated Interim Statement of Loss and Comprehensive Loss for the period ended October 31, 2020

	As previouslyreported	Effect of changein accountingpolicy	As restatedunder newpolicy
	$	$	$
Expenses
Exploration costs	1,856,174	(1,856,174)	-
Consulting fees	739,281	(42,500)	696,781
Settlement of flow-through share premium	-	(171,674)	(171,674)
liability
Loss and comprehensive loss	(4,013,391)	(2,070,348)	(1,943,043)

Consolidated Interim Statement of Cash Flows for the period ended October 31, 2020

	As previously	Effect of change	As restated
	reported	in accounting	under new
		policy	policy
	$	$	$
Operating activities
Net loss	(4,013,391)	2,070,348	(1,943,043)
Cash used in (provided by) operating activities	(3,562,300)	2,070,348	(1,491,952)
Investing activities
Exploration and evaluation assets	(50,000)	(2,070,348)	(2,120,348)
Cash used in investing activities	(179,084)	(2,070,348)	(2,249,432)

4. Amounts receivable

Amounts receivable consist of GST receivable in the amount of $171,876 (April 30, 2021: $288,137).

5. Prepaid expenses

Prepaid expense consists of deposits and services to be rendered within the next 12 months of operations.

	As at	As at
	October31, 2021	April 30, 2021
	$	$
Consulting services	16,892	-
Conferences	60,099	78,065
Investor relations and marketing prepayments	60,372	45,403
Others	66,042	40,768
Balance, ending	203,405	164,236

6. Deposits

The Company's deposits as at October 31 and April 30, 2021 relate to drilling deposits for services to be rendered at its Davidson River property.

For the six months ended October 31, 2021 and 2020

(Expressed in Canadian dollars - unaudited)

7. Exploration and evaluation assets

The Company has acquired an option to acquire 90% interest in the Davidson River Property (the "Property") for an aggregate sum of $1,000,000 and the issuance of 1,000,000 common shares of the Company. The Company has paid $225,000 and is required to pay an additional $775,000 over a period of five years from the date the Company was listed on a stock exchange. During the six months ended October 31, 2021, the Company made additional payment of $75,000 in cash. The Company was also required to issue 1,000,000 common shares on the date the Company was listed on a stock exchange. The common share were issued during the year ended April 30, 2021 and had a total fair value of $270,000 (Note 9). In addition, the Company has the right to acquire the remaining 10% interest in the Property for the sum of $10,000,000 if exercised within one year of March 1, 2018, and increased thereafter by inflation, expiring February 28, 2028.

	Six MonthsEndedOctober31,2021	Year-endedApril 30,2021
Acquisition costs	$	$
Balance, beginning	420,000	100,000
Additions
Sharesissued	-	270,000
Cash payment	75,000	50,000
Balance, ending	495,000	420,000
Deferred exploration costs
Balance, beginning	4,530,295	385,427
Drilling	3,189,228	3,217,820
Consulting	472,463	187,146
Campand fuel	739,616	739,902
Balance, ending	8,931,602	4,530,295
Total, ending	9,426,602	4,950,295

8. Flow-through share premium liability

a) On July 16, 2020, the Company completed a public offering of securities whereby the Company issued 11,715,000 flow-through units for gross proceeds of approximately $2,577,300. Each flowthrough unit consisted of one flow-through common share and one or one-half share purchase warrant exercisable at a price of $0.30 per common share for a period of three years (Note 9(c)). The flow-through shares were issued at a premium of $0.02 per flow-through share, calculated as the difference in the price per flow-through unit and the price of a standard unit sold as part of the same offering, as tax deductions generated by the eligible expenditures will be passed through to the shareholders of the flow-through shares once the eligible expenditures are incurred and renounced.

The total flow-through share premium liability related to the 11,715,000 flow-through shares was calculated to be $234,300 and represents the Company's obligation to spend $2,577,300 on eligible expenditures, which the Company is expected to incur before December 31, 2022 under the general rule and December 31, 2021 under the look-back rule.

8. Flow-through share premium liability (continued)

b) On October 21, 2020, the Company completed a public offering of securities whereby the Company issued 10,241,000 flow-through units for gross proceeds of approximately $2,253,020. Each flowthrough unit consisted of one flow-through common share and one or one-half share purchase warrant exercisable at a price of $0.30 per common share for a period of three years(Note 9(f)). The flow-through shares were issued at a premium of $0.02 per flow-through share, calculated as the difference in the price per flow-through unit and the price of a standard unit sold as part of the same offering, as tax deductions generated by the eligible expenditures will be passed through to the shareholders of the flow-through shares once the eligible expenditures are incurred and renounced.

The total flow-through share premium liability related to the 10,241,000 flow-through shares was calculated to be $204,820 and represents the Company's obligation to spend $2,253,020 on eligible expenditures.

c) On August 10, 2021, the Company completed a private placement whereby the Company issued 11,353,812 flow-through units for gross proceeds of approximately $3,008,760. Each flow-through unit consisted of one flow-through common share and one-half share purchase warrant exercisable at a price of $0.24 per common share for a period of three years (Note 9(f)). The flow-through shares were issued at a premium of $0.025 per flow-through share, calculated as the difference in the price per flow-through unit and the price of a standard unit sold as part of the same offering, as tax deductions generated by the eligible expenditures will be passed through to the shareholders of the flow-through shares once the eligible expenditures are incurred and renounced.

The total flow-through share premium liability related to the 11,353,812 flow-through shares was calculated to be $283,845 and represents the Company's obligation to spend $3,008,760 on eligible expenditures.

Expenditures related to the use of flow-through unit proceeds are included in exploration and evaluation assets but are not available as a tax deduction to the Company as the tax benefits of these expenditures are renounced to the investors.

During the six months ended October 31, 2021, the Company incurred approximately $2,410,758 eligible expenditures, and the liability has been reduced as show below:

Balance -July 16, 2020 financing	$234,300
Balance –October 21, 2020 financing	204,820
Amortization of flow-through premium	(351,088)
Balance as at April 30, 2021	$88,032
Balance –August 10, 2021financing	283,845
Amortization of flow-through premium	(224,184)
Balance as at October31, 2021	$147,693

Notes to the Condensed Consolidated Interim Financial Statements For the six months ended October 31, 2021 and 2020 (Expressed in Canadian dollars - unaudited)

9. Share capital

Authorized share capital:

Unlimited common shares without par value.

Issued and outstanding:

At October 31, 2021, there were 119,216,283 (April 30, 2021: 92,758,453) common shares issued and fully paid common shares outstanding.

During the six months ended October 31, 2021:

(a) The Company completed a private placement whereby the company issued 8,296,833 units and 11,353,812 flow-through units for gross proceeds of $5,000,000 (Note 8). Each unit is comprised of one common share and one-half of one share purchase warrant and each flow-through unit is comprised of one flow-through common share and one-half of one share purchase warrant. Each whole warrant is exercisable to purchase one additional common share of the Company at a price of $0.36 for a period of three years, subject to acceleration provisions.

In connection with the private placement, the Company paid broker fees of $328,874 in cash and issued 1,056,000 broker's warrants with a fair value of $148,770. Each broker's warrant is exercisable into one additional common share of the Company at a price of $0.24 for a period of three years. The Company additionally incurred financing advisory and legal fees directly related to the offering in the total amount of $117,745 which is included as share issuance cost.

(b) The Company issued 6,807,186 common shares in connection with the exercise of stock options and common share purchase warrants for proceeds of $1,833,940.

During the six months ended October 31, 2020:

• (a) On May 4, 2020, pursuant to a prospectus dated April 27, 2020, the Company issued 470,000 units with each unit comprising of one common share and one share purchase warrant exercisable to purchase one additional common share of the Company at a price of $0.25 for a period of four years upon conversion of $70,500 of the subscriptions received as at April 30, 2020. In addition, the Company also issued 132,189 common shares upon the conversion of special warrants issued upon receipt of subscriptions totaling $19,828.
• (b) The Company issued 4,966,670 units upon conversion of subscriptions received as at April 30, 2020. Each unit is comprised of one common share and one share purchase warrant exercisable to purchase one additional common share of the Company at a price of $0.25 for a period of four years.
• (c) The Company completed a public offering of securities whereby the Company issued 9,613,500 units and 11,715,000 flow-through units for gross proceeds of $4,500,000 (Note 8). Each unit is comprised of one common share and one-half of one share purchase warrant and each flowthrough unit is comprised of one flow-through common share and one-half of one share purchase warrant. Each whole warrant is exercisable to purchase one additional common share of the Company at a price of $0.30 for a period of three years, subject to acceleration provisions.

In connection with the public offering, the Company paid broker fees of $265,335 in cash and issued 978,625 broker's warrants with a total fair value of $100,043. Each broker's warrant is exercisable into one additional common share of the Company at a price of $0.20 for a period of three years.

9. Share capital (continued)

• (d) The Company issued 1,000,000 common shares with a fair value of $270,000 to the optionor for the Davidson River Property upon listing on the TSX-V (Note 7).
• (e) The Company issued 800,000 common shares with a fair value of $276,000 as a one-time bonus to a key officer of the Company (Note 10), which is included in share-based compensation.
• (f) The Company completed a public offering of securities whereby the Company issued 5,800,000 units and 10,241,000 flow-through units (Note 8) for gross proceeds of $3,413,020. Each unit is comprised of one common share and one-half of one share purchase warrant and each flowthrough unit is comprised of one flow-through common share and one-half of one share purchase warrant. Each whole warrant exercisable to purchase one additional common share of the Company at a price of $0.30 for a period of three years, subject to acceleration provisions. The Company allocated proceed of $802,050 to share purchase warrants using the residual valued method.

In connection with the public offering, the Company paid broker fees of $259,259 in cash and issued 962,460 broker warrants with a total fair value of $63,307. Each broker warrant is exercisable into one additional common share of the Company at a price of $0.20 for a period of three years.

(g) The Company issued 5,211,760 common shares in connection with the exercise of common share purchase warrants for proceeds of $261,940.

Reserves:

The share-based payment reserve records items recognized as stock-based compensation expense and other share-based payments until such time that the stock options or warrants are exercised, at which time the corresponding amount will be transferred to share capital.

Options:

The Company has a stock option plan whereby a maximum of 10% of the issued and outstanding common shares of the Company may be reserved for issuance pursuant to the exercise of stock options. The terms of the granted options are fixed by the Board of Directors and are not to exceed ten years. The exercise price of options are determined by the Board of Directors, but shall not be less than the closing price of the Company's common shares on the day preceding the option grant date, less any discount permitted by the Exchange

Options granted under the plan may vest immediately on grant, or over a period as determined by the Board of Directors or, in respect of options granted for investor relations services, as prescribed by Exchange policy.

Notes to the Condensed Consolidated Interim Financial Statements For the six months ended October 31, 2021 and 2020 (Expressed in Canadian dollars - unaudited)

9. Share capital (continued)

Options (continued):

A continuity schedule of the Company's outstanding stock options for the six months ended October 31, 2021 and 2020 are as follows:

	October 31, 2021			October 31, 2020
	Numberoutstanding		Weightedaverageexercise price	Numberoutstanding		Weightedaverageexercise price
Outstanding, beginning of period	5,730,000	$	0.18	-	$	-
Granted	1,385,000		0.25	5,000,000		0.18
Exercised	(233,333)		0.21	-		-
Outstanding, end of period	6,881,667	$	0.20	5,000,000	$	0.18
Exercisable, end of period	5,833,056	$	0.19	5,000,000	$	0.18

At October 31, 2021, the Company had outstanding stock options outstanding to acquire common shares of the Company as follows:

Expiry date	Optionsoutstanding	Optionsexercisable	Exercise price	Weightedaverageremainingcontractuallife (years)
May 4, 2030	1,750,000	1,750,000	$0. 15	8.51
July 2, 2025	3,030,000	3,030,000	$0. 20	3.67
January 5, 2025	750,000	562,500	$0. 20	3.18
June 1, 2026	1,291,667	430,556	$0. 25	4.59
December 1, 2021	60,000	60,000	$0. 25	0.08

The Company calculates the fair value of the stock options granted using the Black-Scholes option pricing model. The Black-Scholes option pricing model inputs for options granted and vested during the six months ended October 31, 2021 are as follows:

Grant Date	Expiry Date	ExercisePrice	Risk-FreeInterest Rate	ExpectedLife	VolatilityFactor	DividendYield	FairValue
June 1, 2021	June 1, 2026	$0.25	0.51%	3 years	72%	0%	$0.11
June 1, 2021	December 1,2021	$0.25	0.32%	0.5 years	80%	0%	$0.05

The risk-free interest rate is based on the Canadian government bond rate for a similar term as the expected life of the stock options. The forfeiture rate assumption is based on historical results and the annualized volatility is based on comparable companies' historical share prices. The 5 year life options granted on June 1, 2021 vest in three tranches, with one third immediately vesting and the other two over the following two years. The options granted on June 1, 2021 and expiring on December 1, 2021 vested immediately.

Total expense arising from share-based compensation recognized related to the options granted during the six months ended October 31, 2021 was $106,506 (October 31, 2020- $564,421), using the Black-Scholes option pricing model.

9. Share capital (continued)

Warrants:

A continuity schedule of the Company's outstanding common share purchase warrants for the six months ended October 31, 2021 and 2020 is as follows:

		October 31, 2021Weighted	October 31, 2020Weighted
	Numberoutstanding	averageNumberexercise priceoutstanding		averageexercise price
Outstanding, beginning of period	31,858,296	$0.28	15,807,552	$0.12
Granted	10,881,322	0.35	26,062,504	0.28
Exercised	(6,573,853)	0.29	(5,211,760)	0.05
Outstanding and exercisable,end of period	36,165,765	$0.30	36,658,296	$0.25

At October 31, 2021, the Company had outstanding common share purchase warrants exercisable to acquire common shares of the Company as follows:

GrantDate	Number	Exercise Price	Expiry Date
November 26, 2018	4,581,000	0.25	November 26, 2022
March 24, 2020	15,660	0.25	March 24, 2024
April 20, 2020	6,060	0.25	April 20, 2024
May 4, 2020	5,280,004	0.25	May 4, 2024
June 25, 2020	8,590,749	0.30	June 25, 2023
June 25, 2020	978,625	0.20	June 25, 2023
October 21, 2020	721,845	0.20	October 21, 2023
October 21, 2020	5,110,500	0.30	October 21, 2023
August 10, 2021	9,825,322	0.36	August 10, 2024
August 10, 2021	1,056,000	0.24	August 10, 2024
Total	36,165,765

The Company allocates the fair value to share purchase warrants issued as part of units with common shares using the residual method. The fair value of share purchase warrants granted as compensation to finders and consultants is calculated using the Black-Scholes option pricing model.

10. Related party transactions and balances

The Company's key management comprises of its officers and directors. During the six months ended October 31, 2021 the Company paid an officer and director $83,958 (October 31, 2020: $77,500) for consulting services and rent, and an officer $30,000 (October 31, 2020: $30,000) for consulting services.

As of October 31, 2021, there was $5,872 (April 30, 2021: $5,000) owing to companies controlled by certain officers and directors of the Company. The amounts owing are unsecured, non-interest bearing, have no fixed terms of repayment and are due on demand. The Company has also prepaid $16,892 (April 30, 2021: $25,700) to certain officers of the Company in connection with expenses to be incurred on behalf of the Company or services to be provided to the Company.

10. Related party transactions and balances (continued)

During the six months ended October 31, 2021, the Company incurred share-based compensation of $44,894 (October 31, 2020 - $504,438) for options granted to officers and directors of the Company.

During the six months ended October 31, 2021, the Company incurred director's fees of $36,000 (October 31, 2020 - $nil).

During the six months ended October 31, 2020 the Company issued a one-time bonus to a key office of the Company. The bonus consisted of 800,000 common shares with a fair value of $276,000 (Note 9) and a one-time cash payment of $94,000.

11. Financial instruments and risks

(a) Fair values

The fair value of accounts payable approximates its carrying values due to the short-term to maturities of the financial instrument.

(b) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to interest rate risk.

(c) Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Company's primary exposure to credit risk is in its cash. The risk in cash is managed through the use of a major financial institution which has a high credit quality as determined by rating agencies. Credit risk is assessed as low.

(d) Foreign exchange rate risk

Foreign exchange risk is the risk that the Company's financial instruments will fluctuate in value as a result of movements in foreign exchange rates. The Company has no assets or liabilities denominated in foreign currencies; therefore, is not exposed to foreign exchange risk.

(e) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company requires funds to finance its business development activities. In addition, the Company needs to raise equity financing to carry out its exploration programs. There is no assurance that financing will be available or, if available, that such financings will be on terms acceptable to the Company. Liquidity risk is assessed as high.

(f) Price risk

The Company is exposed to price risk with respect to commodity prices. The Company's ability to raise capital to fund exploration and development activities is subject to risks associated with fluctuations in the market price of commodities.

12. Capital management

The Company's capital structure consists of cash and share capital. The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support acquisition and exploration of resource properties. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business. The Company is dependent on external financing to fund its activities. In order to carry out exploration and pay for administrative costs, the Company will spend its existing working capital and raise additional amounts as needed. The Company will continue to assess new exploration and evaluation assets and seek to acquire interests in properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. There were no changes in the Company's approach to capital management since inception. The Company is not subject to externally imposed capital requirements.

13. Commitments

Pursuant to the option agreement entered into between the Company and the counter party (Note 7), the Company is committed to the following payment schedule:

(a) On signing of this Agreement, pay the sum of $100,000 to 877384 (paid);

(b) Within five (5) Business Days of a Going Public Transaction, pay the sum of $50,000 (paid during the year ended April 30, 2021);

• (c) Within twelve (12) months of a Going Public Transaction, pay the sum of $75,000 (paid);
• (d) Within twenty-four (24) months of a Going Public Transaction, pay the sum of $100,000;
• (e) Within thirty-six (36) months of a Going Public Transaction, pay the sum of $125,000;
• (f) Within forty-eight (48) months of a Going Public Transaction, pay the sum of $200,000;
• (g) Within sixty (60) months of a Going Public Transaction, pay the sum of $350,000; and

(h) On the date of, and concurrently with, a Going Public Transaction, issue 1,000,000 Shares (issued during the year ended April 30, 2021).

14. Subsequent events

.

Subsequent to October 31, 2021:

Subsequent to October 31, 2021 the Company received gross proceeds of $19,167 in connection with the exercise of 76,666 common share purchase warrants.