Stria Lithium Inc. — Interim / Quarterly Report 2021

May 26, 2021

STRIA LITHIUM INC.

Condensed Consolidated Interim Financial Statements

For the three and six months ended March 31, 2021

(Expressed in Canadian dollars) (Unaudited)

Condensed Consolidated Interim Financial Statements
Condensed Consolidated Interim Statements of Financial Position	2
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)	3
Condensed Consolidated Interim Statements of Changes in Equity	4
Condensed Consolidated Interim Statements of Cash Flows	5
Notes to the Condensed Consolidated Interim Financial Statements	6 to 16

NOTICE TO READER

The accompanying unaudited condensed consolidated interim financial statements 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 unaudited condensed consolidated interim financial statements.

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Stria Lithium Inc.

	Stria Lithium Inc.	Stria Lithium Inc.
	Unaudited Condensed Consolidated Interim Statements of Financial Position (in Canadian dollars)
	(in Canadian dollars)
	As at	March 31,	September 30,
		2021	2020
	ASSETS	$	$
	Current assets
	Cash	682	194,130
	Sales tax recoverable	139,234	107,921
	Tax credits and credits on duties receivable	251,875	251,875
	Prepaid expenses	3,900	1,300
		395,691	555,226
	Mineral exploration properties Note 6	352,475	352,475
	Exploration and evaluation assets Note 6	1,867,366	1,868,091
		2,615,532	2,775,792
	LIABILITIES
	Current liabilities
	Accounts payable and accrued liabilities	416,154	1,086,992
	Due to shareholder Note 13	750,000
	Amounts due to related parties Note 11	518,423	518,442
		1,684,577	1,605,434
	Non-Current liabilities
	Long term liability	10,000	10,000
		1,694,577	1,615,434
	SHAREHOLDERS' EQUITY
	Share capital Note 8	3,658,620	3,648,682
	Warrants Note 9	120,877	192,052
	Contributed surplus	610,162	541,424
	Deficit	(3,468,703)	(3,221,800)
		920,954	1,160,358
		2,615,532	2,775,792
	Going concern (Note 2)

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

On behalf of the Board

(signed) "Robin Dow" (signed) "Jeffrey York" Robin Dow, Director Jeffrey York, Director

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Stria Lithium Inc.

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Unaudited Condensed Consolidated Interim Statements of Comprehensive Loss (in Canadian dollars)

	(in Canadian dollars)
					Three months ended,	Six months ended,
					March 31	March 31
					2021 2020	2021 2020
					$ $	$ $
	Expenses
	Travel and promotion				- -	- 2,276
	Professional fees				85,052 22,560	217,827 41,838
	Filing fees				5,287 1,300	6,587 17,319
	Insurance				1,125 1,591	4,500 11,135
	Agent fees				8,917 2,095	10,772 6,070
	Rent expense				4,800 -	6,000 3,600
	Supplies expense				455 1,249	1,115 2,124
	Other expenses				53 50	104 628
					(105,689) (28,845)	(246,904) (84,990)
	Other income
	Other Income related to flow-through shares		Note 7		- -	- 180,798
	Net Income (loss) and total comprehensive income (loss)				(105,689) (28,845)	(246,904) 95,808
	Basic and diluted income(loss) per common share				(0.001) (0.0004)	(0.003) 0.001
	Basic and diluted weighted average
	number of common shares outstanding				72,460,369 72,460,369	72,460,369 72,460,369

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

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Stria Lithium Inc.

Unaudited Condensed Consolidated Interim Statements of Changes in Equity (in Canadian dollars)

	Stria Lithium Inc. Unaudited Condensed Consolidated Interim Statements of Changes in Equity_(in Canadian dollars)_	Stria Lithium Inc. Unaudited Condensed Consolidated Interim Statements of Changes in Equity_(in Canadian dollars)_
	Share capital Warrants Contributed Surplus		Deficit Total
	Number of shares	$ $ $	$ $
	Balance, September 30, 2018 72,460,369	3,648,682 262,233 471,243	(3,241,295) 1,140,863
	Shares issued for cash 10,000,000	500,000 - -	- 500,000
	Flow through share premium -	(180,798) - -	- (180,798)
	Warrant issued -	(69,202) 71,175 -	- 1,973
	Expiry of warrants -	- (57,378) 57,378	- -
	Share issuance costs -	(32,051) - -	- (32,051)
	Stock-based compensation -	- - 40,620	- 40,620
	Net loss and total comprehensive loss -	- - -	(240,581) (240,581)
	Balance, September 30, 2019 72,460,369	3,648,682 262,233 471,243	(3,241,295) 1,140,863
	Expiry of warrants -	- (70,181) 70,181	- -
	Net loss and total comprehensive loss -	- - -	19,495 19,495
	Balance, September 30, 2020 72,460,369	3,648,682 192,052 541,424	(3,221,800) 1,160,358
	Expiry of warrants -	- (71,175) 71,175	- -
	Net loss and total comprehensive loss -	- - -	(141,215) (141,215)
	Balance, December 31, 2020 72,460,369	3,648,682 120,877 612,599	(3,363,014) 1,019,144
	Expiry of warrants -	- - -	- -
	Exercise of stock options 150,000	9,938 - (2,438)	- 7,500
	Net loss and total comprehensive loss -	- - -	(105,689) (105,689)
	Balance, March 31, 2021 72,610,369	3,658,620 120,877 610,162	(3,468,703) 920,954

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

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Stria Lithium Inc.

Unaudited Condensed Consolidated Interim Statements of Cash Flow

(in Canadian dollars)

(in Canadian dollars)
	Three months ended, Six months ended, March 31 March 31 2021 2020 2021 2020 $ $ $ $
OPERATING ACTIVITIES
	(105,689) (28,845) (246,904) 95,808 - - - (180,798) (685,473) 27,006 (704,769) 788,260
Net Income (Loss)
Adjustment for: Other Income related to flow-through shares Interest on long term debt Changes in working capital items Cash flowsfrom(usedin) operating activities INVESTING ACTIVITIES Explorationand evaluationcosts Cash flows usedin investing activities FINANCING ACTIVITIES Amounts received from warrants Amounts received from related parties as Loans Cashflows from financing activities Increase (decrease) in cash Cash, beginning of the period Cash,end of theperiod Supplemental information
	(791,162) (1,839) (951,673) 703,270
	1,400 - 725 (702,558)
	1,400 - 725 (702,558)
	757,500 - 757,500 - - - - -
	757,500 - 757,500 -
	(32,262) (1,839) (193,448) 713 32,944 3,085 194,130 533
	682 1,246 682 1,246
	(112,159) (2,080) 94,345 (3,861) - (86,881) (19) (57,381) (3,900) (3,900) (2,600) 4,064 (125,656) (125,656) (668,075) 119,867 (670,838) 845,438
Changes in working capital items consist of the following:
Sales tax recoverable
Amounts due to related parties
Prepaid expenses
Accounts receivables
Accounts payable and accruedliabilities
	(685,473) 27,006 (704,769) 788,260

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

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Stria Lithium Inc.

Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021 (In Canadian dollars)

1. NATURE OF OPERATIONS

Stria Lithium Inc. (the “Company” or “Stria”) was incorporated on May 24, 2011 under the Canada Business Corporations Act. The Company’s shares are listed on the TSX Venture Exchange under the symbol SRA. The head office of the Company is located at 945 Princess Street, Box # 118, Kingston, Ontario.

The Company is engaged in the acquisition, exploration and development of mineral properties in Quebec, Canada, as well as the development of processes to purify and recover lithium metal directly from ore and from brine liquids.

2. GOING CONCERN ASSUMPTION

These consolidated financial statements have been prepared on a going concern basis in accordance with International Financial Reporting Standards (“IFRS”). The going concern basis of presentation assumes the Company will continue to operate for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. The Company is in the exploration stage and has not earned revenue from operations. During the six months period ended March 31, 2021, the Company incurred a net loss of $105,689, and had negative cash flows from operations of $791,162. In addition, the Company has a working capital deficiency of $1,288,886 and a deficit of $3,468,703.

The above factors indicate material uncertainties, which may cast significant doubt about the Company’s ability to continue as a going concern. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period. This assessment is based upon planned actions that may or may not occur for a number of reasons including the Company’s own resources and external market conditions.

The Company’s ability to continue as a going concern, realize its assets and discharge its liabilities in the normal course of business in fiscal year 2021, meet its corporate administrative expenses and continue its exploration and research activities, is dependent upon management’s ability to obtain additional financing, through various means including but not limited to equity financing and loans from related and unrelated parties. No assurance can be given that any such additional financing will be available or that it can be obtained on terms favourable to the Company.

These consolidated financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. If the going concern basis was not appropriate for these consolidated financial statements, then adjustments would be necessary to the carrying amount of assets and liabilities, the reported expenses, and the statement of financial position classifications used.

3. SIGNIFICANT ACCOUNTING POLICIES

a) Statement of compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee (“IFRIC”). The condensed consolidated financial statements don’t include all the information for consolidated financial statements, refer to the company’s annual financial statement for a complete of (“IFRS”) statement.

These consolidated financial statements were authorized for issue by the Board of Directors on May 25, 2021.

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Stria Lithium Inc. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021 (In Canadian dollars)

b) Judgments, estimates and assumptions

When preparing the consolidated financial statements, management makes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses.

Significant management judgment

The following are significant management judgments in applying the accounting policies of the Company that have the most significant effect on the consolidated financial statements.

Recognition of deferred income tax assets and measurement of income tax expense

Management continually evaluates the likelihood that its deferred tax assets could be realized. This requires management to assess whether it is probable that sufficient taxable income will exist in the future to utilize these losses within the carry-forward period. By its nature, this assessment requires significant judgment. To date, Management has not recognized any deferred tax assets in excess of existing taxable temporary differences expected to reverse within the carry-forward period.

Going concern

The assessment of the Company’s ability to continue as a going concern and to raise sufficient funds to pay for its ongoing operating expenditures, meet its liabilities for the ensuing year, and to fund planned and contractual exploration programs, involves significant judgment based on historical experience and other factors including expectation of future events that are believed to be reasonable under the circumstances. See Note 2 for more information.

Tax credits and mining duties

The Company is eligible to claim certain credits on eligible exploration expenditures; determining the eligibility of the amounts and the credit to be received requires management’s judgement.

Estimation uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be substantially different.

Impairment of mineral exploration properties and exploration and evaluation assets

Determining if there are any facts and circumstances indicating impairment or reversal of impairment losses is a subjective process involving judgment and a number of estimates and interpretations in many cases.

Determining whether to test for impairment of mineral exploration properties and exploration and evaluation assets requires management’s judgment, among others, regarding the following: the period for which the entity has the right to explore in the specific area has expired or will expire in the near future, and is not expected to be renewed; substantive expenditure on further exploration and evaluation of mineral resources in a specific area is neither budgeted nor planned; exploration for and evaluation of mineral resources in a specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; or sufficient data exists to indicate that, although a development in a specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.

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Stria Lithium Inc.

Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021 (In Canadian dollars)

When an indication of impairment or a reversal of an impairment loss exists, the recoverable amount of the individual asset or cash-generating units must be estimated.

Share based payments

The estimation of stock-based compensation and warrants requires the selection of an appropriate valuation model and consideration as to the inputs necessary for the valuation model chosen. The Company has made estimates as to the volatility of its own shares, the estimated life of stock options and warrants granted and the time of exercise of those stock options and warrants. The valuation model used by the Company is the Black-Scholes model.

The Company allocates values to share capital and to warrants on the residual basis when the two are issued together as a unit. As this allocation is based upon the share price at the time of issuance and the stock is thinly traded, the actual value of the components may differ from this allocation.

4. Amounts Receivable

Amounts Receivable
	March	31 2021	September 30, 2020
Sales tax receivable		139,234	107,921

5. FINANCIAL INSTRUMENTS, RISK MANAGEMENT AND CAPITAL MANAGEMENT

Financial instruments

The Company's financial instruments at March 31, 2021 consist of cash, accounts payable and accrued liabilities, amounts due to related parties and long-term liability. The fair value of these financial instruments approximates their carrying value due to their short-term nature except for the long-term portion of amounts due to related parties where the fair value approximates its carrying value due to being subject to market rate interest.

Carrying amounts of financial assets and liabilities

Carrying amounts of financial assets and liabilities	Carrying amounts of financial assets and liabilities
Financial assets
March 31 2021 September 30, 2020
Measured at amortized cost
Cash 682 194,130
Financial liabilities
Measured at amortized cost
Accounts payable and accrued liabilities 416,154 1,086,992
Amounts due to related parties 518,423 518,442
Long-term liability 10,000 10,000

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Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021 (In Canadian dollars)

Stria Lithium Inc.

Risk management

The Company examines the various financial risks to which it is exposed and assesses the impact and likelihood of those risks. These risks include credit risk and liquidity risk. Where material, these risks are reviewed and monitored by the Board of Directors.

Credit risk

Credit risk is the risk of an unexpected loss if a party to its financial instruments fails to meet its contractual obligations. The Company’s only significant financial asset exposed to credit risk is cash and maximum exposure is equal to the carrying value of this asset. The Company’s cash is held at a Canadian chartered bank. It is Management’s opinion that the Company is not exposed to significant credit risk. There has been no change to Management’s assessment of credit risk compared with the prior year.

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 its liquidity needs by carefully monitoring cash outflows due in day-to-day business as well as any anticipated transactions. The Company has a working capital deficiency of $1,288,886 at March 31, 2021, including $682 in cash and current liabilities totalling $934,577 due within the next 12 months. There has been no change to Management’s assessment of liquidity risk compared with the prior year.

March 31, 2021 September 30, 2020			LIABILITIES	LIABILITIES
	Within 1 year	1 to 3 years		4 to 5 years	Total
	934,577	10,000		-	944,577
	1,605,434	10,000		-	1,615,434

Capital management

The Company manages its capital to ensure its ability to continue as a going concern and to provide an adequate return to its shareholders as well as ensuring that all flow-through monies obtained are utilized in exploration activities and spent by the required deadline. In the management of capital, the Company includes the components of shareholders’ equity and loans from related parties. As long as the Company s in the exploration stage of its mining properties, it is not the intention of the Company to contract additional debt obligations to finance its work programs. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares. When financing conditions are not optimal, the Company may enter into option agreements or find other solutions to continue its activities or may slow its activities until conditions improve. While the Company is not subject to any external capital requirements, neither regulatory nor contractual, funds from flow-through financing to be spent on the Company’s exploration properties are restricted for this use. In order to facilitate the management of its capital requirements, the Company prepares annual budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions.

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Stria Lithium Inc.

Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021 (In Canadian dollars)

6. MINERAL EXPLORATION PROPERTIES AND EXPLORATION AND EVALUATION ASSETS

	March	31,	2021	September	30, 2020
			Exploration
	Mineral		and	Mineral	Exploration
	exploration		evaluation	exploration	and evaluation
	properties		assets	properties	assets
	$		$	$	$
Pontax-Lithium	352,475		1,868,366	352,475	1,868,091
Total	352,475		1,868,366	352,475	1,868,091

a) Pontax-Lithium

On December 6, 2013, the Company acquired a 100% interest in the Pontax-Lithium property from Khalkos Exploration Inc. (“Khalkos”) in consideration for a cash payment of $100,000 and the issuance of 833,333 common shares. The property was recorded at a value of $350,000 upon initial recognition, based on the fair value of the property received and consideration paid. The Pontax-Lithium property is comprised of a group of 68 contiguous mining claims located in the James Bay Territory of Northern Quebec. Other acquisition costs of $2,475 have been included in the cost of the property.

There was no change to mineral exploration properties between October 1, 2018 to March 31, 2021.

The following table reflects changes to mineral exploration properties and exploration and evaluation assets between October 1, 2018 to March 31, 2021:

	March 31, 2021 September 30,2020
Balance,beginningand end ofperiod	$ $ 1,868,366 1,067,858
Balance, beginning of period Additions Drilling Geochemical Survey Propertymaintenance	- 700,000 - - (1,400) 7,928
	(1,400) 707,928
Tax credits and duties	- 92,305
Balance,end ofperiod	1,867,366 1,868,091

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Stria Lithium Inc. Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021 (In Canadian dollars)

7. FLOW-THROUGH AND TAX EXPENSE

The Company is permitted, under Canadian income tax legislation, to renounce flow-through related resources expenditures to investors in advance of the Company incurring all of the expenditures. In accordance with this legislation, the Company has twelve months following the effective date of renunciation to incur the remaining expenditures. The Company begins incurring interest charges for unspent funds after two months following renunciation.

In November and December 2017, the Company completed flow-through private placements for gross proceeds of $477,500. In February 2018, the related tax deductions were renounced to investors with an effective date of December 31, 2017. The Company incurred all the required flow through expenditures by the December 31, 2018 deadline and incurred an amount of $1,769 for Part XII.6 tax and deemed expenses in Quebec, which is calculated on the monthly balance of unspent flow through funds.

On December 12, 2018, the Company closed a flow-through private placement (Note 8) for gross proceeds of $150,000. The proceeds from the financing were allocated between share capital ($75,000), warrants ($19,875) and a deferred liability ($55,125) using the residual method. The liability component represents the Company’s obligation to pass on the tax deductions to investors.

On December 27, 2018, the Company closed a flow-through private placement (Note 8) for gross proceeds of $350,000. The proceeds from the financing were allocated between share capital ($175,000), warrants ($49,327) and a deferred liability ($125,673) using the residual method. The liability component represents the Company’s obligation to pass on the tax deductions to investors.

With respect to the December 2018 private placements described above, further to the renunciation of the tax deductions to investors in February 2019, the Company incurred all the required flow through expenditures by the December 31, 2019 deadline and incurred an amount of $8,333 for Part XII.6 tax and deemed expenses in Quebec, which is calculated on the monthly balance of unspent flow through funds.

8. SHARE CAPITAL

Unlimited number of common shares, voting, participating and without par value

Issued and fully paid

Common shares
	Number of Shares	$
Balance, September 30, 2018	62,460,369	3,430,733
Shares issued for cash	10,000,000	500,000
Warrants	-	(69,202)
Flow through share premium	-	(180,798)
Share issuance costs	-	(32,051)
Balance till December 31, 2020	72,460,369	3,648,682
Options exercised	150,000	9,938
Balance at March 31, 2021	**72,610,369 **	**3,658,620 **

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Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021

Stria Lithium Inc.

(In Canadian dollars)

• (1) On December 12, 2018, the Company completed a flow-through private placement for gross proceeds of $150,000. The private placement was comprised of 3,000,000 flow-through units at a price of $0.05 per unit. Each flow-through unit consists of one flow-through common share and one common share purchase warrant. Each full warrant entitles the holder to purchase one additional common share of the Company at a price of $0.055 until December 12, 2020. The proceeds from the financing ($150,000) were allocated to share capital ($75,000), warrants ($19,875) and after which $55,125 residual was allocated to the flow-through liability. The fair value of the shares was determined based on the trading price of the Company’s shares on the TSX Venture Exchange (“TSX-V”). The fair value of the warrants issued as a part of the private placement have been recorded at a value of $19,875 based on the BlackScholes option pricing model, using the following assumptions: stock price of $0.025, risk-free interest rate of 2.05%, expected life of warrants of 2 years, annualized volatility of 86.25% and dividend rate of 0%. The risk-free interest rate is based on the yield of a Government of Canada benchmark bond in effect at the time of grant with an expiry commensurate with the expected life of the warrants. Other share issuance costs total $1,218 and were presented as a reduction of share capital. The entire amount of the proceeds was raised from directors of the Company.

• (2) On December 27, 2018, the Company completed a flow-through private placement for gross proceeds of $350,000. The private placement was comprised of 7,000,000 flow-through units at a price of $0.05 per unit. Each flow-through unit consists of one flow-through common share and one common share purchase warrant. Each full warrant entitles the holder to purchase one additional common share of the Company at a price of $0.055 until December 27, 2020. In connection with the financing, the Company paid cash finders’ fees of $14,000 and issued, as additional consideration, 280,000 non-transferable broker warrants, each broker warrant entitling the holder to acquire one common share of the Company at a price of $0.055 until December 27, 2020. The proceeds from the financing ($350,000) were allocated to share capital ($175,000), warrants ($49,327) and after which $125,673 residual was allocated to the flow-through liability. The fair value of the shares was determined based on the trading price of the Company’s shares on the TSX-V. The fair value of the warrants issued as a part of the private placement and commissions have been recorded at a value of $49,327 and $1,973 respectively. This is based on the Black-Scholes option pricing model, using the following assumptions: stock price of $0.025, risk-free interest rate of 1.90%, expected life of warrants of 2 years, annualized volatility of 89.37% and dividend rate of 0%. The risk-free interest rate is based on the yield of a Government of Canada benchmark bond in effect at the time of grant with an expiry commensurate with the expected life of the warrants. Other share issuance costs total $4,044 and were presented as a reduction of share capital. $175,000 of the proceeds raised were from directors of the Company.

9. WARRANTS

Outstanding warrants entitle the holders thereof to subscribe to an equivalent number of common shares.

The following table reflects the continuity of warrants:

			Weighted
			average
		Number of	exercise
		Warrant	price
Balance, September	30, 2019	49,173,000	0.06
Issued		0	0
Expired		(7,205,000)	0.06
Balance, September	30,2020	41,968,000	0.06
Issued		-	-
Expired		(10,630,000)	0.06
Balance,December	31,2020 andMarch31,2021	31,338,000	0.05

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Stria Lithium Inc.

Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021 (In Canadian dollars)

As at March 31, 2021, the following warrants were issued and outstanding:

Number of Warrants	Issue date fair value $	Exercise price $	Expiry date
7,100,000 8,880,000 640,000 6,150,000 3,400,000 168,000 5,000,000	- - 32,307 61,500 - 6,520 -	0.050 0.050 0.050 0.050 0.050 0.050 0.050	April 13, 2021 January 27, 2022 January 27, 2022 November 9, 2021 December 9, 2021 December 8, 2021 January 22, 2022
31,338,000	120,877	0.027

As at September 30, 2020, the following warrants were issued and outstanding:

Number of Warrants	Issue date fair value $	Exercise price $	Expiry date
7,100,000 8,880,000 640,000 6,150,000 3,400,000 168,000 5,000,000 350,000 3,000,000 280,000 7,000,000	- - 32,307 61,500 - 6,520 - 20,550 19,875 1,973 49,327	0.05 0.05 0.05 0.05 0.05 0.05 0.07 0.07 0.055 0.055 0.055	April 13, 2021 January 27, 2022 January 27, 2022 November 9, 2021 December 9, 2021 December 8, 2021 January 22, 2022 January 22, 2021 December 12, 2020 December 27, 2020 December 27, 2020
41,968,000	192,052

10. STOCK OPTIONS

On May 21, 2019, the Company adopted an incentive stock option plan in accordance with the policies of the TSX Venture Exchange (the “Stock Option Plan”) which provides that the Board of Directors of the Company may from time to time, in its discretion, grant to directors, officers, employees and consultants of the Company options to purchase common shares, provided that the number of common shares reserved for issuance under the Stock Option Plan shall not exceed ten percent (10%) of the issued and outstanding common shares, which are exercisable for a period to be determined by the Board at the time the option is granted. Vesting of options is made at the discretion of the Board of Directors at the time the options are granted. The Company’s Stock Option Plan was changed to a Fixed 20% on May 21, 2021, allowing the

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Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021

Stria Lithium Inc.

(In Canadian dollars)

number of common shares reserved for issuance under the plan not to exceed twenty percent (20%) of the issued and outstanding common shares.

The following table reflects the continuity of stock options:

		Weighted average
	Number	outstanding
	outstanding	exercise price
		$
Balance, September 30, 2018	4,478,451	0.07
Expired	(50,000)	0.05
Granted (1)	2,500,000	0.05
Balance, September 30, 2019	6,928,451	0.06
Expired	(70,000)	0.055
Balance, September 30, 2020	6,858,451	0.07
Granted (1)	(150,000)	0.05
BalanceDecember31,2020 &March31,2021	6,708,451	0.06

• (1) On April 10, 2019, 2,500,000 stock options were granted to a Directors, Officers, employees and consultants at an exercise price of $0.05 per share, expiring on April 9, 2024.

• (2) On March 19, 2021, 150,000 stock options were exercised at $0.05 per share, additionally $2,438 were attributed from contributed surplus to share capital for option exercised being share of stock base compensation calculation at the time of the option grants.

As at March 31, 2021, the following stock options were outstanding and exercisable:

Exercise prices $ 0.06 $ 0.10 $ 0.05	OUTSTANDING Weighted average Weighted average Number remaining outstanding outstanding contractual life exercise price (in years) $ 3,120,000 1.03 0.06 1,028,451 0.86 0.10 2,560,000 2.80 0.05	EXERCISABLE
		Weighted average Number vested vested exercise price $ 3,120,000 0.06 1,028,451 0.10 2,560,000 0.05
	6,708,451 1.68 0.06	6,708,451 0.06

14

Stria Lithium Inc.

Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021 (In Canadian dollars)

As at September 30, 2020, the following stock options were outstanding and exercisable:

Exercise prices $ 0.06 $ 0.10 $ 0.05	OUTSTANDING Weighted average Weighted average Number remaining outstanding outstanding contractual life exercise price (in years) $ 3,120,000 1.53 0.06 1,028,451 1.36 0.10 2,710,000 3.30 0.05	EXERCISABLE
		Weighted average Number vested vested exercise price $ 3,120,000 0.06 1,028,451 0.10 2,710,000 0.05
	6,858,451 2.21 0.06	6,858,451 0.06

11. RELATED PARTY TRANSACTIONS

Related party transactions not disclosed elsewhere in these financial statements are as follows:

Unless otherwise stated, none of these transactions incorporated special terms and conditions and no guarantees were given or received.

Focus Graphite Inc.

As at March 31, 2021, $5,000 ($5,000 – September 30 2020) is included in amount due to related parties owing to Focus Graphite Inc., which shares common management. Amount owing in unsecured, bears no interest and due on demand.

Grafoid Inc.

During the three months ended March 31, 2021, the company was charged $Nil (September 30[th] , 2020 - $5,050) by Grafoid Inc., which shares common management, for consulting fees.

MuAnalysis

During the year ended March 31, 2021, the company was charged $5,424 (September 30 2020 - $3,600) by MuAnalysis, which shares common management, for rent expenses. As at March 31, 2020, $6,312 is included in amount due to related parties (September 30, 2020 - $6,312).

Loan from Officer

As at March 31, 2021, included in amounts due to related parties is an amount of $1,055 due to a former Officer of the Company ($1,055 - September 30, 2020). The amount due at March 31, 2021 is composed of a balance owing for $1,055 of unpaid interest. The loan agreement was entered into between the Company and the Officer on December 22, 2017 from converting an outstanding balance of consulting fees of $33,995 as at December 1, 2017 due to the Officer. The loan was repaid on May 27, 2020. The loan bears interest at a rate of 10% per annum and one time 2% setup fee due on the inception of the loan agreement and is

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Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the three and six months ended March 31, 2021

Stria Lithium Inc.

(In Canadian dollars)

secured by all assets of the Company. During the six months ended March 31, 2021, the company has been charged $Nil in interest charges ($1,642 - September 30, 2020).

Loan from 9174893 Canada Inc.

As at March 31, 2021, included in amounts due to related parties is an amount of $5,500 due to 9174893 Canada Inc. ($5,500 - September 30, 2020). The amount includes 10% finance fee. The company has made repayment of $Nil during the year ended March 31, 2021 (September 30, 2020 - $15,000).

Loan from JJJY Holdings

Company received $500,000 loan from a director for general operations on May 25, 2020 subject to 10% set up fee.

Key Management Compensation

• (1) As at March 31, 2021, $Nil is included in amount due to related parties for unpaid consulting fees incurred to date. (September 30, 2020 - $Nil).

The costs noted above include an allocation of compensation paid to key management personnel.

12. UNCERTAINTY DUE TO COVID-19

The duration and full financial effect of the COVID-19 pandemic is unknown at this time, as are the measures taken by governments, companies and others to attempt to reduce the spread of COVID-19. Any estimate of the length and severity of these developments is therefore subject to significant uncertainty, and accordingly estimates of the extent to which the COVID-19 may materially and adversely affect the Company's operations, financial results and condition in future periods are also subject to significant uncertainty.

In the current environment, the assumptions and judgements made by the Company are subject to greater variability than normal, which could in the future significantly affect judgments, estimates and assumptions (Note 3) made by management as they relate to potential impact of the COVID-19 and could lead to a material adjustment to the carrying value of the assets or liabilities affected.

The impact of current uncertainty on judgments, estimates and assumptions extends, but is not limited to, the Company's valuation of its mineral exploration properties and evaluations assets, including the assessment for impairment and impairment reversal, and going concern as the volatility of commodity processes has created uncertainty in the markets and could potentially impact the Company’s ability to raise sufficient funds. Actual results may differ materially from these estimates.

13. SUBSEQUENT EVENTS

Subsequent to the quarter end, on April 7, 2021, a Director exercised 970,000 warrants at $0.05 per share and 6,130,000 warrants expired on April 13, 2021. During the quarter, the company received an advance payment from the Chairman of the Board for the exercise of convertible securities of $750,000.

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