Trident Resources Corp. — Interim / Quarterly Report 2023

May 29, 2023

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(an exploration stage enterprise)

Condensed Consolidated Interim Financial Statements

Three-months ended March 31, 2023 and 2022

(Expressed in Canadian Dollars)

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

1

EROS RESOURCES CORP.

(an exploration stage enterprise)

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (unaudited - expressed in Canadian dollars)

			March 31,		December 31,
	Note		2023		2022
Assets
Current
Cash		$	69,383	$	61,074
Income taxes receivable			-		110,807
Other receivables			500,018		389,545
Prepaid expenses			20,466		33,827
			589,867		595,253
Marketable securities	4		11,074,060		11,160,489
Reclamation bonds			26,179		26,179
Exploration and evaluation interests	5, 11		6,249,603		6,219,435
Property and equipment	6		5,262		5,596
Right-of-use assets	7		27,272		27,272
		$	17,972,224	$	18,034,224
Liabilities
Current
Accounts payables and accrued liabilities		$	181,949	$	259,497
Margin loan payable	8		1,245,493		1,245,493
Due to related parties	11		2,020,748		2,020,748
Income taxes payable			190,938		190,938
Lease liability– short term	7		12,755		12,755
			3,549,142		3,729,431
Lease liability – long term	7		-		16,009
Decommissioning liability	9		144,011		144,011
Deferred income tax			1,882,285		1,882,285
			5,575,438		5,771,736
Shareholders’ Equity
Share capital	10		74,809,125		74,809,125
Contributed surplus	10		1,061,840		1,061,840
Deficit			(63,574,159)		(63,608,477)
			12,296,806		12,262,488
		$	17,972,224	$	18,034,224

On behalf of the Board:

“Tom MacNeill” “Ron Netolitzky” Tom MacNeill, Director Ron Netolitzky, Director

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

2

EROS RESOURCES CORP.

(an exploration stage enterprise)

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited - expressed in Canadian dollars)

	Share Capital Shares Amount Contributed Surplus Deficit Total Shareholders’ Equity
Balance at December 31, 2021 Net income for theyear	97,893,741 $ 74,809,125 $ 1,061,840 $ (55,963,100) $ 19,907,865 - - - (7,645,377) (7,645,377)
Balance at December 31, 2022 Net loss for theyear	97,893,741 $ 74,809,125 $ 1,061,840 $ (63,608,477) $ 12,262,488 - - - 34,318 34,318
Balance at March 31,2023	97,893,741 $ 74,809,125 $ 1,061,840 $(63,579,159) $ 12,296,806

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

3

EROS RESOURCES CORP.

(an exploration stage enterprise)

CONDESNED CONSOLIDATED INTERIM STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited - expressed in Canadian dollars)

			For the three-months ended	For the three-months ended	For the three-months ended
			March 31,
	Note		2023		2022
Revenues			-		5,960
Cost of Sales
Oilproduction			35		-
Grossprofit			(35)		5,960
Expenses
Consulting fees	11		15,000		60,000
Accretion	9		-		4,093
Amortization	6		333		14,171
Investor relations			7,441		35,575
Professional fees			16,413		75,475
Interest	8		-		-
Office and administration			15,068		56,003
Property research			-		106,582
Transfer agent and listing fees			7,598		19,927
Wages	11		63,657		154,493
Travel			-		-
			(125,511)		(526,319)
Other items
(Loss) gain on sale of marketable securities	4		(43,421)		729,790
(Loss) gain on foreign exchange			(431)		(2,582)
Unrealized(loss) gain on marketable securities	4		(155,472)		568,090
Net (loss) income before income taxes			(324,796)		774,939
Income taxes
Current income tax recovery	10		-		155,467
Deferred income tax recovery	10		-		154,276
Total income taxes recovery			-		309,743
Net (loss) income and comprehensive (loss) income for the
period		$	(324,796)	$	1,084,682
Basic (loss) earnings per share		$	(0.00)	$	0.01
Diluted(loss) earnings per share		$	(0.00)	$	0.01
Weighted average number of common shares outstanding
Basic (Note 16)			97,893,741		97,893,741
Diluted(Note 16)			97,893,741		98,443,132

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

4

EROS RESOURCES CORP.

(an exploration stage enterprise) CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (unaudited - expressed in Canadian dollars)

naudited - expressed in Canadian dollars)
		For the three-months ended
		March 31,
		2023		2022
Cash from operating activities
Net (loss) income for the period	$	(324,796)	$	1,084,682
Add back non-cash items:
Accretion		-		4,093
Amortization		333		14,171
Loss (gain) on sale of marketable securities	5	155,472		(729,790)
Unrealized loss (gain) on marketable securities		(315,693)		(568,090)
Deferred income tax (recovery) expense		-		(154,276)
Loss on foreign exchange		-		2,582
Interest on lease liability		-		-
Net changes in non-cash working capital items:
Other receivables		335		128,628
Prepaid expenses		13,358		604
Due to related parties		-		-
Accounts payable and accrued liabilities		(1,596,298)		(19,854)
Income taxes receivable		-		-
Income taxespayable		-		(257,196)
Cash used in operating activities		(1,708,175)		(494,446)
Investing activities
Acquisition of marketable securities		-		(3,162,064)
Purchase of property and equipment		-		(3,640)
Proceeds on sale of marketable securities		1,746,651		1,668,343
Exploration and evaluation expenditures		(10,168)		(240,082)
Cash (used in) generated from investing activities		(1,716,483)		(1,737,443)
Financing activities
Repayment (Advancement) of promissory notes receivable		-		968,461
Lease liability payments		-		(13,281)
Advances from related party		-		-
Advances from margin loan		-		-
Margin loan repayment		-		-
Interest on margin loan		-		-
Annual fees and transactions costs – margin loan		-		-
Cash generated from financing activities		-		955,180
(Decrease) increase in cash during the year		8,308		(1,276,709)
Foreign exchange effect on cash		-		(2,582)
Cash, beginning of theyear		61,074		1,713,549
Cash, end of theyear	$	69,383	$	434,258
Supplemental Cash Flow Information
Taxes paid (recovered)	$	-	$	124,888
Interest paid	$	-	$	12,381

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

5

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

1. NATURE OF OPERATIONS

Eros Resources Corp.’s (“Eros” or the “Company”) principal business activities include the acquisition, exploration and development of mineral and oil and gas resource properties in North America. The Company’s corporate office is located at Suite 420, 789 West Pender Street, Vancouver, British Columbia V6C 1H2. Eros is a Tier 1 company listed on the TSX Venture Exchange (“TSX-V”).

These consolidated financial statements have been prepared on a going concern basis in accordance with IFRS under the assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business.

The Company’s continuing operations, as intended, are dependent upon its ability to identify, evaluate and negotiate an acquisition of or participation in an interest in properties, assets, or businesses.

The business of mining and exploring for minerals and oil and gas reserves involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The recoverability of the carrying value of exploration and evaluation assets and the Company’s ability to continue as a going concern is dependent upon the preservation of its interest in the underlying properties, the discovery of economically recoverable reserves, the achievement of profitable operations or the ability of the Company to raise alternative financing.

At the time these consolidated financial statements were prepared, the global economy is struggling with high inflation rates and the ongoing war in the Ukraine. While these events have had mixed effects on the economy in general, there has been little to no impact on the operations of Eros.

2. BASIS OF PRESENTATION

These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee (“IFRIC”) applicable to the preparation of interim financial statements, including International Accounting Standard 34 (“IAS 34”), Interim Financial Reporting.

These condensed interim consolidated financial statements include the accounts of Eros and its wholly owned subsidiaries, Anthem Resources Incorporated (“Anthem”) and Otish Minerals Ltd., both companies incorporated in British Columbia, and Bell Mountain Exploration Corp. (“Bell Mountain”), a company incorporated in Nevada, USA. These condensed interim consolidated financial statements should be read in conjunction with the annual financial statements for the year ended December 31, 2020, which have been prepared in accordance with IFRS as issued by the IASB.

Basis of measurement

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

These condensed interim consolidated financial statements are presented in Canadian dollars, which is the Company’s and its subsidiaries’ functional currency.

6

Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

(an exploration stage enterprise)

2. BASIS OF PRESENTATION (continued)

The preparation of financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgement in applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.

3. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

Financial instruments that are measured subsequent to initial recognition at fair value are grouped in Levels 1 to 3 based on the degree to which the fair value is observable:

Level 1 Unadjusted quoted prices 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).

The marketable securities which consist of common shares are based on quoted prices and are therefore considered to be Level 1. The marketable securities which consist of warrants are based on inputs other than quoted prices and are therefore considered to be Level 2. The marketable securities which consist of common shares of private companies are based on unobservable inputs and are therefore considered to be Level 3. The Company’s risk exposures are summarized below:

Credit risk

Credit risk is the risk that the Company will incur an unexpected loss as a result of the counterparty to a financial asset failing to meet their contractual obligations. The Company's financial assets that are exposed to credit risk are cash and other receivables. The Company holds cash with large financial institutions in accordance with the Company’s investment policy. Management considers credit risk on cash to be low, as the counterparties are highly rated Canadian banks. The Company is exposed to some credit risk on other receivables, apart from sales tax refunds receivable. The amounts included in other receivables are due from companies with a common director and/or officer with Eros.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company’s approach to managing liquidity risk is to provide reasonable assurance that it has sufficient capital to meet short-term financial obligations after taking into account its exploration obligations and cash on hand. All of the Company’s financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms with the exception of lease liabilities. The Company’s lease liability matures based on the terms outlined in the lease agreement. The Company is also exposed to liquidity risk on its margin loan and advances from related parties as the amounts are due on demand.

7

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

3. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (continued)

Market risk

Market risk consists of interest rate risk, foreign currency risk and other price risk. Market risk to which the Company is exposed is as follows:

Interest rate risk

Interest rate risk consists of two components:

• (i) To the extent that payments made or received on the Company’s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.

• (ii) To the extent that changes in prevailing market rates differ from the interest rate in the Company’s monetary assets and liabilities, the Company is exposed to interest rate price risk.

The Company is exposed to interest rate risk though its margin loan. The rate of interest charged on borrowed funds under margin loan is prime plus 3% and is calculated daily and charged monthly (Note 8). Any fluctuation of interest rate as a result of movement in prime rate could lead to an increase or decrease in the amount the Company pays to service the margin loan. The Company manages its interest rate risk by monitoring its debt levels. The Company estimates that a 100-basis point fluctuation in short-term interest rates, with all other variables held constant, would not result in material adjustment to interest expense.

Foreign currency risk

The Company is exposed to financial risk related to the fluctuation of foreign exchange rates. A significant change in the exchange rate between the Canadian dollar relative to the US dollar could have an effect on the Company’s future results of operations, financial position, or cash flows. The Company has not hedged its exposure to currency fluctuations. As at March 31, 2023 and December 31, 2022, the Company is exposed to currency risk through the following financial assets denominated in a currency other than the Canadian dollar:

	March 31, 2023	March 31, 2023	December	31, 2022
	US $	CDN $	US $	CDN $
Cash	6,830	9,759	6,038	8,178
Accounts payable	(62,824)	(84,907)	(76,611)	(103,363)

Based on the above, assuming all other variables remain constant, a 10% strengthening of the Canadian dollar against the US dollar would have increased the Company’s comprehensive income/loss by $6,965 (2022 - $9,558). A weakening of the Canadian dollar would have had the opposite effect.

Other price risk

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk. The Company’s marketable securities are carried at market value or fair value based on observable market values and are therefore directly affected by fluctuations in the market value of the underlying securities. Changes in market prices of securities in the portfolio have a material effect on net income (loss). A 20% increase in the market prices would have increased/decreased the Company’s net income/loss by $2,214,812 (2022 - $2,367,000).

8

EROS RESOURCES CORP.

(an exploration stage enterprise)

Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

4. MARKETABLE SECURITIES

MARKETABLE SECURITIES
		March	31, 2023
	Number of
Company	common shares		Equitysecurities
Skeena Resources Limited (“Skeena”) (Note 8)	813,500	$	6,735,780
Acquisition Oil & Gas Corp.	500,000		750,000
Southern Empire Resources Corp.(1)	9,402,940		610,913
MAS Gold Corp. (“MAS”)(2)	19,614,286		588,429
Getty Copper Corp.	6,200,000		279,000
Nickel North Exploration Corp.	10,200,000		255,000
Eagle Plains Resources Corp.	725,000		217,500
Tembo Resources Corp.	225,000		40,500
Metallic Minerals Corp.	105,000		39,375
1844 Resources Ltd.	525,000		26,250
Other equities and warrants	-		1,531,314
		$	11,074,060

	December	December	31, 2022
	Number of
Company	common shares		Equitysecurities
Skeena Resources Limited (“Skeena”) (Note 8)	819,500	$	5,908,595
Southern Empire Resources Corp.(1)	9,402,940		940,294
MAS Gold Corp. (“MAS”)(2)	19,614,286		784,571
Acquisition Oil & Gas Corp.	500,000		750,000
Nickel North Exploration Corp.	10,346,000		310,380
Eagle Plains Resources Corp.	1,130,000		214,700
Getty Copper Corp.	6,200,000		310,000
Tembo Resources Corp.	435,000		80,475
Cornish Metals Ltd.	150,000		46,500
Atico Mining Corp.	75,000		15,750
Other equities and warrants	-		1,799,224
		$	11,160,489

9

(an exploration stage enterprise)

Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

4. MARKETABLE SECURITIES (continued)

• (1) Southern Empire Resources Corp. is a company with common management and a common director.

• (2) MAS is a company with a common director.

Securities were purchased and sold during the period, resulting in the realization of gains and losses. The fair value of equity securities is determined by reference to closing prices on a stock exchange. The investment in private entity is carried at cost as its fair value is indeterminable.

The continuity of the Company’s marketable securities during the three-months ended March 31, 2023 is as follows:

follows:
	December 31,		Proceeds from	Realized	Unrealized	March 31,
	2022	Additions	dispositions	Gains(Loss)	Gains(Loss)	2023
	$	$	$	$	$	$
Investment in public entities:
- Shares and shares
purchase warrants	10,410,489	-	(1,746,651)	(155,472)	315,693	10,324,060
Investment in private entity:
- Shares	750,000	-	-	-	-	750,000
Total	11,160,489	-	(1,746,651)	(155,472)	315,693	11,074,060

The continuity of the Company’s marketable securities during the year ended December 31, 2022, is as follows:

	December 31,		Proceeds from	Realized	Unrealized	December
	2021	Additions	dispositions	Gains	Gains	31,2022
	$	$	$	$	$	$
Investment in public entities:
- Shares and shares
purchase warrants	20,377,456	209,077	(1,687,178)	(193,158)	(8,295,708)	10,410,489
Investment in private entity:
- Shares	300,000	300,000	-	-	150,000	750,000
Total	20,677,456	509,077	(1,687,178)	(193,158)	(8,145,708)	11,160,489

The marketable securities portfolio includes warrants where fair values were estimated using the Black-Sholes option pricing model using the following ranges of inputs:

	March 31, 2023	December 31, 2022
Stock price	Closing prices	Closing prices
Exercise price	$0.09 to $0.20	$0.05 to $0.20
Expected life	0.24 to 2.49 years	0.48 to 2.73 years
Annualized volatility	80%	80%
Dividend rate	0%	0%
Risk free rate	3.64% to 3.83%	3.82% to 4.07%

10

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

5. EXPLORATION AND EVALUATION INTERESTS

The exploration and evaluation assets that have been capitalized for the periods ended March 31, 2023 and December 31, 2022 are as follows:

	Saskatchewan		Saskatchewan	Nevada	Total
Commodity	Gold		Uranium	Gold-Silver
Balance at December 31,2021	$	-	$22,343	$2,447,822	$2,470,165
Additions
Staking and maintenance		-	-	41,569	41,569
Royalties		-	-	40,000	40,000
Geology/geophysics		-	-	54,243	54,243
Drilling	3,500,000		-	-	3,500,000
Field support		-	-	14,329	14,329
Environmental and socio-
economic		-	-	99,129	99,129
Total additions for the year:	3,500,000		-	249,270	3,749,270
Impairment duringtheyear:		-	-	-	-
Balance at December 31,2022	3,500,000		22,343	2,697,092	6,219,435
Additions
Staking and maintenance		-	-	-	-
Royalties				-	-
Geology/geophysics		-	-	6,401	6,401
Drilling		-	-	-	-
Field support		-	-	3,530	3,530
Environmental and socio-economic		-	-	20,237	20,237
Total additions for the year:		-	-	30,168	30,168
Impairment duringtheyear:		-	-	-	-
Balance at March 31,2023	$3,500,000		$22,343	$2,727,260	$6,249,603

Realization of exploration and evaluation assets

The investment in and expenditures on exploration and evaluation assets comprise a significant portion of the Company’s assets. Realization of the Company’s investment in these assets is dependent upon the establishment and maintenance of legal ownership, the attainment of successful production from the properties or from the proceeds of their disposal.

Mineral exploration and development is highly speculative and involves inherent risks. While the rewards if an ore body is discovered can be substantial, few properties that are explored are ultimately developed into producing mines. There can be no assurance that current exploration programs will result in the discovery of economically viable quantities of ore. There can be no assurance that compensation will be received for properties that have been or may be expropriated. The amounts shown for acquisition costs and deferred exploration expenditures represent costs incurred to date and do not necessarily reflect present or future

11

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

5. EXPLORATION AND EVALUATION INTERESTS (continued)

values. These costs will be depleted over the useful lives of the properties upon commencement of commercial production or written off if the properties are abandoned or if the claims are allowed to lapse.

Title to exploration and evaluation interests

Title to exploration and evaluation assets involves certain inherent risks due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the frequently ambiguous conveyance history of many mineral properties. The Company has investigated title to its mineral property interests in accordance with industry standards for the current stage of exploration of such properties, and, to the best of its knowledge, title to its properties are in good standing; however, these procedures do not guarantee the Company’s title. Property title may be subject to unregistered prior agreements or transfers and title may be affected by undetected defects.

Environmental

The Company is subject to the laws and regulations relating to environmental matters in all jurisdictions in which it operates, including provisions relating to property reclamation, discharge of hazardous material and other matters. The Company may also be held liable should environmental problems be discovered that were caused by former owners and operators of its properties and properties in which it has previously had an interest.

The Company conducts its mineral exploration activities in compliance with applicable environmental protection legislation. The Company is not aware of any existing environmental problems related to any of its current or former properties that may result in material liability to the Company.

Environmental legislation is becoming increasingly stringent, and costs and expenses of regulatory compliance are increasing. The impact of new and future environmental legislation on the Company’s operations may cause additional expenses and restrictions. If the restrictions adversely affect the scope of exploration and development on the mineral properties, the potential for production on the properties may be diminished or negated.

a. Nevada

Bell Mountain Property

The Company has earned a 100% ownership of the Bell Mountain gold-silver property. An Advance Royalty Payment of $20,000 is due annually on June 15 until such time as there is production from the property (paid during the year ended December 31, 2022). In conjunction with the updated notice from the Bureau of Land Management in August of 2018 which exempts the Bell Mountain project from the moratorium on exploration activities, the Company is once again actively exploring its Nevada properties.

12

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

5. EXPLORATION AND EVALUATION INTERESTS (continued)

b. Saskatchewan

Saskatchewan uranium interests

Hatchet Lake

The Company has an interest in a joint venture property with Denison Mines Corp. (“Denison”) as operator, located on the Wollaston Trend at the northeast margin of the Athabasca Basin. Eros holds a 29.89% joint venture interest for Hatchet Lake with further dilution expected.

Wollaston Trend

The Company has a 2% net smelter return royalty (“NSR”) interest on 44 claims of uranium exploration lands along the Wollaston Trend underlying the southeast margin of the Athabasca Formation. Denison retains the right to purchase one-half of the NSR at any time for $1,000,000.

Athabasca Basin – Uranium

The Company has a 100% interest in six claim groups in the Athabasca Northern Basin of Saskatchewan. Some of the claims are subject to a non-participating, non-voting, carried 0.5% NSR.

La Ronge Gold Belt

On December 20, 2021, MAS Gold Corp. and the Company signed an option agreement granting the Company an option for the exclusive right to earn a 17.5% interest in all of MAS's current properties in the prospective La Ronge Gold Belt of north-eastern Saskatchewan by funding $3,500,000 in exploration expenditures over a six-month period, starting from January 2022. During the year ended December 31, 2022, Eros completed its funding commitment and has earned its 17.5% interest.

Upon the delivery of a written notice to MAS Gold Corp., a Joint Venture shall be deemed formed between MAS and the Company (“Joint Venture”). The respective participating interest of each party under the Joint Venture Agreement shall be MAS as to 82.5%; and the Company as to 17.5%. As at December 31, 2022, the company has not entered into a Joint Venture Agreement with MAS.

13

EROS RESOURCES CORP.

(an exploration stage enterprise)

Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

6. PROPERTY AND EQUIPMENT

	Oil & gas	interests	Mineral exploration field	Mineral exploration field
Cost	and equipment		equipment		Total
Balance, December 31, 2021 and 2022	$	392,210	$	100,080	$	492,290
Additions		-		-		-
Balance,March 31,2023	$	392,210	$	100,080	$	492,290
Accumulated Amortization
Balance, December 31, 2021	$	392,210	$ 92,702		$	482,912
Amortization/depletion		-		1,782		1,782
Balance, December 31, 2022	$	392,210	$	94,485	$	486,695
Amortization/depletion		-		333		333
Balance, March 31, 2023	$	392,210	$	94,818	$	487,028
Carrying Value
Balance, December 31, 2021	$	-	$	5,596	$	5,596
Balance, March 31, 2023	$	-	$	5,262	$	5,262

Flaxcombe – heavy oil

On February 6, 2017, Eros agreed to fund the drilling of three vertical wells into the Flaxcombe heavy oil field, owned by Westcore Energy Ltd. (“Westcore”) at an estimated cost of $1.6 million. This amount has been fully advanced and drilling is complete. According to the terms of the agreement with Westcore, Eros will hold a 90% working interest in the wells until its investment is recovered, and will hold a 50% interest thereafter. In addition, Eros retains a right of first refusal to participate on the same terms on two subsequent drill programs on the Flaxcombe field. Westcore is a related party by virtue of having a director in common with the Company.

During the years ended December 31, 2022 and 2021, the three wells remained offline. As such, indicators of impairment existed leading to a test of recoverable amount of the oil and gas assets. The Company estimated the recoverable amount based on FVLCD using a discounted cash flow model categorized in Level 3 of the fair value hierarchy. The Company has fully impaired its interest in the wells in prior years and there is no indication that previously recognized impairment losses no longer exist or have decreased.

14

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

7. RIGHT-OF-USE ASSET AND LEASE LIABILITY

The Company has a lease agreement for the headquarter office space in Vancouver, British Columbia. During the year ended December 31, 2022, the Company committed to extending the lease expiring on January 31, 2022 to January 31, 2025. The Company recognized an additional $39,272 for a ROU asset and $39,272 for a lease liability as at February 1, 2022.

The continuity of the ROU asset and lease liability for the periods ended March 31, 2023 and December 31, 2022 is as follows:

Right-of-use asset
Value of right-of-use asset as at December 31, 2021	$	982
Additions		39,272
Amortization		(12,982)
	$
Value of right-of-use asset as at December 31,2022		27,272
Additions		-
Amortization		-
Value of right-of-use asset as at March 31, 2023	$	27,272
Lease liability
Lease liability recognized as of December 31, 2021	$	1,175
Additions		39,272
Lease payments		(14,689)
Lease interest		3,006
	$
Lease liability recognized as of December 31, 2022		28,764
Additions		-
Lease payments		-
Lease interest		-
Lease liability recognized as of March 31, 2023	$	28,764
Current portion	$	12,755
Long-termportion		16,009
	$	-

8. Margin loan payable

On May 3, 2022, the Company entered into a Margin Account Agreement with Canaccord Genuity Wealth Management (“Canaccord") for a $1.5 million advance (the "Margin Loan"). The Margin Loan: (i) is subject to an interest rate of prime plus 3%, with interest rate being calculated daily and charged monthly; (ii) is due on demand; (iii) is secured by 813,500 shares of Skeena held with Canaccord; and (iv) is subject to margin requirement percentage of 30% loan value. The Company has no restrictions on trading Skeena shares, but margin calls can be made by Canaccord if or when the account balance drops below the margin requirement.

During the year-ended December 31, 2022, the Company paid $66,273 in interest expense and $321,237 for margin calls. The Company has outstanding advances of $1,245,493 as at March 31, 2023.

15

Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

(an exploration stage enterprise)

16

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

9. DECOMMISSIONING LIABILITY

The Company has estimated the total discounted amount of future cash flows to settle decommissioning liabilities relating to its oil and gas interests to be $144,011 (2022 - $144,011) as at March 31, 2023. The total amount is expected to be incurred in the next 10 years and was discounted using an interest rate of 3%.

		Flaxcombe
Balance at December 31, 2021	$	139,796
Accretion		4,215
Balance at December 31, 2022	$	144,011
Accretion		-
Balance at March 31, 2023	$	144,011

Conversely, at its active mineral-exploration sites, the Company fulfils its site restoration obligations on an ongoing basis when a drill site is no longer required, and accordingly no liability is accrued for in relation to the Company’s mineral properties. Management will continue to assess the provision for decommissioning as future exploration and development activity is undertaken.

10. SHARE CAPITAL AND CONTRIBUTED SURPLUS

Authorized

Unlimited number of common shares without par value.

Shares

There has been no movement in shares during the three months ended March 31, 2023 or the year ended December 31, 2022.

Warrants

Warrant transactions are summarized as follows:

	Warrants
		Weighted Average
	Number	Exercise Price
Outstanding December 31, 2021, 2022 and March 31,
2023.	24,723,444	$0.15
Number currentlyexercisable	24,723,444	$0.15

On August 4, 2021, the Company extended the expiry date of 24,723,444 warrants originally set to expire on August 12 and 13, 2021 to August 12 and 13, 2022.

On August 10, 2022, the Company further extended the expiry date of 24,723,444 warrants set to expire on August 12 and 13, 2022 to August 12 and 13, 2025.

17

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

10. SHARE CAPITAL AND CONTRIBUTED SURPLUS (continued )

At March 31, 2023, warrants were outstanding as follows:

	Number	Exercise
Grant date	of Warrants	Price	ExpiryDate
August 12, 2020	24,223,444	$ 0.15	August 12, 2025
August 13,2020	500,000	$0.15	August 13,2025
	24,723,444

The weighted average remaining contractual life of the warrants is 2.22 (December 31, 2022 – 2.62) years.

Stock options

The Company has a stock option plan under which it is authorized to grant options to executive officers, directors, employees, and consultants. Pursuant to the policies of the TSX-V, the Company is authorized to grant options to acquire up to 10% of its issued and outstanding common shares. The exercise price of each option granted under the plan is greater than or equal to the closing market price of the Company’s shares on the date of each grant. The maximum term of each option is five years.

Share-based payments

Stock option transactions are summarized as follows:

ock option transactions are summarized as follows:
	Stock	Options
		Weighted Average
	Number	Exercise Price
Outstanding, December 31, 2021	2,800,000	$0.092
Expired	(400,000)	($0.165)
Outstanding, December 31, 2022	2,400,000	$0.080
Expired	-	-
Outstanding,March 31,2023	2,400,000	$0.080
Number currentlyexercisable	2,400,000	$0.080

At March 31, 2023, stock options were outstanding as follows:

	Number	Exercise
Grant date	of Shares	Price	ExpiryDate
July30,2019	2,400,000	$0.080	July30,2024

The weighted average remaining contractual life of the options is 1.28 (2022 – 1.58) years.

At December 31, 2022, stock options were outstanding as follows:

	Number	Exercise
Grant date	of Shares	Price	ExpiryDate
July30,2019	2,400,000	$0.080	July30,2024
	2,400,000

18

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

11. RELATED PARTY BALANCES

In addition to the related party information disclosed elsewhere in the consolidated financial statements, the following significant transactions between the Company and its related parties took place during the financial year at terms agreed between the parties concerned:

Key management compensation

Key management personnel at the Company are the directors and officers of the Company. The remuneration of key management personnel during the periods ended December 31, 2022 and December 31, 2021 was as follows:

			March 31,	December 31,	December 31,
			2023		2022
Short-term benefits	1	$	24,253	$	97,002

• 1 Short-term benefits consist exclusively of salaries, bonuses, health benefits and consulting fees for key management personnel.

Other than the amounts disclosed above, there were no short-term employee benefits or share-based payments paid to key management personnel during the periods ended March 31, 2023 and December 31, 2022.

Included in the consolidated statements of financial position is an amount of $2,020,748 (2022 - $2,020,748) payable to related parties which includes the directors and officers of the Company.

The amounts due to related parties are unsecured, non-interest bearing, repayable on demand and are to be settled in cash. The carrying amounts of the amounts due to related parties approximate their fair values.

During the year ended December 31, 2022, the Company had the following significant transaction with its related parties:

• Funds advanced to MAS Gold Corp. of $3,500,000 to incur drilling expenditure on behalf of the Company as a part of its earn-in on the La Ronge gold belt projects in Saskatchewan and advanced a further $370,000 as a loan which is non-interest bearing, unsecured and due on demand. As described in note 5, if the Company enters the Joint Venture with MAS, the $370,000 advance is to be expensed by MAS Gold Corp. for qualified Mineral Property Expenditure during 2023.

12. SEGMENTED INFORMATION

The Company operates in two business segments being the exploration and development of mineral resource properties and investing in marketable securities with a focus on commodities, with operations and long-term assets in the United States and Canada. The Company’s operations are segmented on a district basis due to the geographic locations of the Company’s exploration operations. At March 31, 2023, long-term assets of $2,753,437 (December 31, 2022 - $2,723,271) relates to mineral resource properties and reclamation bonds located in the United States with the remaining $14,628,920 (December 31, 2022 - $14,715,700) located in Canada.

19

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

13. CAPITAL DISCLOSURES

The Company manages its capital structure and makes adjustments to it based on the funds available to the Company, in order to support the acquisition and exploration of mineral properties, oil and gas exploration and development, and other strategic investments. 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 defines capital as shareholders’ equity. The Company is not exposed to any capital requirements.

The Company has historically relied on the equity markets to fund its activities. The Company will continue to assess new properties and seek to acquire an interest in properties if it feels there is sufficient geologic or economic potential and if it has adequate financial resources to do so. In addition, the Company evaluates investment opportunities, as well as existing investments, for suitability and potential on an ongoing basis. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable. The Company’s capital risk management approach was unchanged in the first quarter of 2023 or fiscal 2022. There were no capital restrictions in the three-month period ended March 31, 2023 and the year ended December 31, 2022 and the Company had no debt aside from trade payables, margin loan payable, due to related parties, income taxes and lease liability.

14. COMMITMENTS

In fiscal 2014, there was an involuntary disposition of the Company’s Canadian mineral property for which the Company received $26,400,000 from the Government of British Columbia. In fiscal 2014, the Company elected to defer $15,147,419 of the proceeds as income inclusion under s.59.1 election of the Canadian Income Tax Act. The elected amount can be offset by Canadian exploration expenses, Canadian development expenses and/or Canadian oil and gas property expenses (collectively referred to as “Mineral Property Expenses”) for Canadian income tax purposes. If the amount cannot be offset in the Company’s ten taxation years subsequent to 2014, the Company will have to include the remaining elected amount as income in the 2014 income tax return. During fiscal 2015, the Company had a change of control in ownership and as such two taxation years were utilized in that year. Hence, as at March 31, 2023, the Company has a further $3,535,000 to spend on qualified Mineral Property Expenses by December 31, 2023 in order to avoid the income inclusion as described above.

20

(an exploration stage enterprise) Notes to the Condensed Consolidated Interim Financial Statements For the three-months ended March 31, 2023 and 2022 (unaudited - expressed in Canadian dollars)

EROS RESOURCES CORP.

15. COMMITMENTS (continued )

The Company must pay an advance royalty payment of $20,000 annually towards the Bell Mountain property in Nevada until such time as there is production from the property (Note 5).

As at March 31, 2023, the Company was committed to pay for office premises leases expiring in January 2022; however, there was an extension agreement entered into during the year to extend the lease until January 31, 2025. The Company’s minimum lease payments over the next three years, in aggregate, is as follows:

2023 2024 2025	$
	11,398 15,706 1,312
Total	28,416

16. EARNINGS PER SHARE

The calculation of basic and diluted earnings (loss) per share for the relevant period is based on the following:

			March 31,			December 31,
			2023			2022
Net (loss) income		$	(324,796)		$	(7,645,377)
Basic weighted average number of
common shares outstanding			97,893,741			97,893,741
Effect on dilutive securities:
Options and warrants			-			-
Diluted weighted average number of
common shares outstanding			97,893,741			97,893,741
Basic income per share	$		0.00	$		(0.08)
Diluted incomeper share	$		0.00	$		(0.08)

21