Vendetta Mining Corp. — Interim / Quarterly Report 2024

Apr 26, 2024

Condensed Interim Financial Statements (Expressed in Canadian dollars)

VENDETTA MINING CORP.

Nine months ended February 29, 2024 and February 28, 2023

(Unaudited – prepared by management)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS

In accordance with National Instrument 51-102 Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed interim financial statements, they must be accompanied by a notice indicating that these condensed interim financial statements have not been reviewed by the Company’s auditors.

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

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VENDETTA MINING CORP.

Condensed Interim Statements of Financial Position (Unaudited - expressed in Canadian dollars)

		February 29,		May 31,
As at		2024		2023
Assets
Current assets:
Cash	$	16,498	$	285,607
Receivables		22,619		19,740
Prepaid expenses and advances (Note 4)		13,663		30,138
		52,780		335,485
Equipment and Right-of-use asset (Note 5)		42,281		69,317
Exploration and evaluation assets (Note 6)		6,011,183		6,011,183
	$	6,106,244	$	6,415,985
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities (Note 10)	$	696,479	$	467,697
Lease liabilities (Note 7)		46,890		34,386
		743,369		502,083
Non-current portion of lease liabilities (Note 7)		6,724		34,675
		750,093		536,758
Shareholders’ equity:
Share capital (Note 8)		27,563,111		27,563,111
Subscriptions received in advance		6,000		6,000
Reserves (Note 8)		1,606,242		1,606,242
Deficit		(23,819,202)		(23,296,126)
		5,356,151		5,879,227
	$	6,106,244	$	6,415,985

Nature of operations and going concern (Note 1)

Approved on behalf of the Board:

“Michael J. Williams” Director “Peter Voulgaris” Director

The accompanying notes are an integral part of these Condensed Interim Financial Statements.

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VENDETTA MINING CORP.

Condensed Interim Statements of Loss and Comprehensive Loss (Unaudited - expressed in Canadian dollars)

Three months ended Feb 29, 2024 Feb 28, 2023	Three months ended Feb 29, 2024 Feb 28, 2023	Nine months ended Feb 29, 2024 Feb 28, 2023
Expenses: Accounting and legal (Note 10) $ 36,390 Amortization (Note 5) 9,012 Business development 482 Exploration expenditures (Note 6 and 10) 54,865 Filing and transfer agent fees 8,877 Financing costs 1,129 Foreign exchange (recovery) (214) Insurance 5,004 Investor relations 10,651 Management fees (Note 10) 39,750 Office and administration (Note 10) 8,853 Travel and meals 346	$ 27,116 56 9,922 69,530 9,197 2,224 (752) 5,043 44,844 251,750 13,064 60,140	$ 76,677 $ 79,042 27,036 171 5,832 24,098 186,586 1,330,086 13,239 10,174 4,017 5,599 (1,100) 8,614 15,011 15,129 35,545 158,678 119,250 291,500 32,714 63,933 4,008 178,590
(175,145) Lease accretion (Note 7) (1,318) Recovery on accounts payable -	(492,134) - 159,145	(518,815) (2,165,614) (4,261) - - 159,145
Loss and comprehensive loss for the period $ (176,463)	$ (332,989)	$ (523,076) $ (2,006,469)
Loss per share – basic and diluted $ (0.00) Weighted average number of shares outstanding 323,189,057	$ (0.00) 303,872,968	$ (0.00) $ (0.01) 323,189,057 301,369,210

The accompanying notes are an integral part of these Condensed Interim Financial Statements.

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VENDETTA MINING CORP.

Condensed Interim Statements of Changes in Shareholders’ Equity (Unaudited - expressed in Canadian dollars)

	Share Capital	Obligation to issue shares	Subscriptions received in advance	Reserves Share option reserves Warrant and other reserves Deficit Total Equity	Reserves Share option reserves Warrant and other reserves Deficit Total Equity
	Shares Amount			Share option reserves
May 31, 2022 Private placement Obligation to issued shares Share issuance costs Loss for the period	299,884,083 $ 26,244,968 18,699,974 934,999 1,080,000 216,000 - (43,765) - -	$ 216,000 - (216,000) - -	$ 6,000 - - - -	$ 1,383,296 - - - -	$ 222,946 $ (20,860,361) $ 7,212,849 - - 934,999 - - - - - (43,765) - (2,006,469) (2,006,469)
February 28, 2023 Warrant exercised Share issuance costs Loss for the period	319,664,057 27,352,202 3,525,000 211,500 - (591) - -	- - - -	6,000 - - -	1,383,296 - - -	222,946 (22,866,830) 6,097,614 - - 211,500 - - (591) - (429,296) (429,296)
May 31, 2023 Loss for the period	323,189,057 27,563,111 - -	- -	6,000 -	1,383,296 -	222,946 (23,296,126) 5,879,227 - (523,076) (523,076)
February 29, 2024	323,189,057 $ 27,563,111	$ -	$ 6,000	$ 1,383,296	$ 222,946 $ (23,819,202) $ 5,356,151

The accompanying notes are an integral part of these Condensed Interim Financial Statements.

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VENDETTA MINING CORP.

Condensed Interim Statements of Cash Flows (Unaudited - expressed in Canadian dollars)

		February 29,		February 28,
For the nine months ended		2024		2023
Cash flows from operating activities:
Loss for the period	$	(523,076)	$	(2,006,469)
Items not affected by cash:
Amortization		27,036		171
Recovery of accounts payable		-		159,145
Lease accretion		4,261		-
Changes in non-cash working capital items:
Receivables		(2,879)		95,531
Prepaid expenses and advances		16,475		(3,463)
Accounts payable and accrued liabilities		228,782		(212,220)
Cash used in operating activities		(249,401)		(1,967,305)
Cash flows from financing activities
Private placement proceeds received		-		934,999
Share issuance costs		-		(24,850)
Lease payments		(19,708)		-
Cash (used in) provided by financing activities		(19,708)		910,149
Change in cash		(269,109)		(1,057,156)
Cash, beginning of the period		285,607		1,516,800
Cash, end of the period	$	16,498	$	459,644
Supplemental schedule of non-cash items
Share issuance costs in accounts payable	$	-	$	18,915
Share issued in settlement of obligation to issue shares	$	-	$	216,000

There was no cash paid for income taxes for the years presented.

The accompanying notes are an integral part of these Condensed Interim Financial Statements.

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VENDETTA MINING CORP.

Notes to Condensed Interim Financial Statements (Unaudited - expressed in Canadian dollars)

Nine months ended February 29, 2024 and February 28, 2023

1. Nature of operations and going concern:

Vendetta Mining Corp. (“the Company” or “Vendetta”) was incorporated pursuant to the provisions of the Business Corporations Act (British Columbia) on December 14, 2009. The Company is in the business of exploration and evaluation of mineral resources in Australia. Its common shares trade on the TSX Venture Exchange (“TSX-V”) under the symbol VTT. The Company’s registered address is: Suite 1500 – 409 Granville Street, Vancouver, British Columbia, V6C 1T2.

The Company is an exploration stage company and engages principally in the acquisition and exploration of resource properties. The recoverability of the amounts shown for exploration and evaluation assets is ultimately dependent upon the existence of economically recoverable reserves, securing and maintaining title and beneficial interest in the properties, obtaining necessary financing to explore and develop the properties, entering into agreements with others to explore and develop the resource properties, and upon future profitable production or proceeds from disposition of the resource properties. The amounts shown as exploration and evaluation assets represent net costs incurred to date, less amounts recovered from third parties and/or written-off, and do not necessarily represent present or future values.

These Condensed Interim Financial Statements have been prepared on a going concern basis which assumes that the Company will be able to realize its assets and settle its obligations in the normal course of business.

The Company has a history of losses with no operating revenue, other than interest income, working capital deficiency of $690,589, and has an accumulated deficit of $23,819,202. The ability of the Company to carry out its planned business objectives is dependent on its ability to raise adequate financing from lenders, shareholders and other investors and/or generate operating profitability and positive cash flow. There can be no assurances that the Company will continue to obtain additional financial resources necessary and/or achieve profitability or positive cash flows. If the Company is unable to obtain adequate additional financing, the Company will be required to curtail operations, exploration and evaluation activities and there would be significant uncertainty whether the Company would continue as a going concern and realize its assets and settle its liabilities and commitments in the normal course of business. The Company estimates that it does not have sufficient funding for the ensuing 12 months of operations. These events and conditions indicate that a material uncertainty exists that may cast significant doubt about the Company’s ability to continue as a going concern.

These Condensed Interim Financial Statements do not reflect adjustments, which could be material, to the carrying values of assets and liabilities, which may be required should the Company be unable to continue as a going concern.

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VENDETTA MINING CORP.

Notes to Condensed Interim Financial Statements (Unaudited - expressed in Canadian dollars)

Nine months ended February 29, 2024 and February 28, 2023

2. Material accounting policies:

(a) Basis of presentation:

These condensed interim consolidated financial statements, including comparatives, have been prepared in accordance with International Accounts Standards (“IAS”) 34, “Interim Financial Reporting” using accounting policies consistent with IFRS Accounting Standards (“IFRS”), as issued by the International Accounting Standards Board and Interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”). The accounting policies and methods of computation applied are the same as those applied in the Company’s annual financial statements for the year ended May 31, 2023.

Unless otherwise stated, amounts are expressed in Canadian dollars.

These condensed interim financial statements were authorized for issuance by the Board of Directors on April 23, 2024.

• (b) Foreign currency transactions:

The presentation currency and functional currency of the Company is the Canadian dollar. Transactions of the Company denominated in other currencies are translated into the relevant functional currency using the exchange rates prevailing at the transaction date. Carrying values of monetary assets and liabilities denominated in foreign currencies are adjusted at each balance sheet date to reflect exchange rates prevailing at that date and the related foreign exchange gains or losses are recognized in profit or loss.

3. Use of estimates and judgments:

The preparation of the financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. The financial statements include estimates which, by their nature, are uncertain. The impact of such estimates is pervasive throughout the financial statements and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates

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

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VENDETTA MINING CORP.

Notes to Condensed Interim Financial Statements (Unaudited - expressed in Canadian dollars)

Nine months ended February 29, 2024 and February 28, 2023

3. Use of estimates and judgments (continued):

Critical accounting judgments

Examples of significant judgments, apart from those involving estimation, include:

Exploration and evaluation assets

The recognition of exploration and evaluation assets requires judgments regarding future recoverability and carrying cost. The cost model is utilized and the value of the exploration and evaluation assets is based on the acquisition expenditures incurred. At every reporting period, management assesses the potential impairment which involves assessing whether or not facts or circumstances exist that suggest the carrying amount exceeds the recoverable amount.

Functional currency

The Company applied judgment in determining its functional currency. The functional currency determination was conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates.

4. Prepaid expenses and advances:

Included in prepaid expenses and advances are:

February 29, 2024	May 31, 2023
Prepaid expenses $ 12,450 Exploration advances 1,213	$ 27,149 2,989
$ 13,663	$ 30,138

5. Equipment and right-of-use asset:

Office Equipment Right-of-Use Asset	Total
Cost: May 31, 2022 $ 4,953 $ - Additions (Note 7) - 71,775	$ 4,953 71,775
May 31, 2023 and February 29, 2024 4,953 71,775	76,728
Accumulated amortization: May 31, 2022 4,192 - Amortization 228 2,991	4,192 3,219
May 31, 2023 4,420 2,991 Amortization 120 26,916	7,411 27,036
February29,2024 4,540 29,907	34,447
Net book value: May 31, 2023 $ 533 $ 68,784 February29,2024 $ 413 $ 41,868	$ 69,317 $ 42,281

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VENDETTA MINING CORP.

Notes to Condensed Interim Financial Statements (Unaudited - expressed in Canadian dollars)

Nine months ended February 29, 2024 and February 28, 2023

6. Exploration and evaluation assets:

The Company’s resource property with associated acquisition-related costs that has been capitalized and reflected on the statement of financial position is as follows:

								Pegmont
							Queensland, Australia
Balance,May	31,	2022,May	31,	2023,and February	29,	2024	$	6,011,183

Pegmont Property, Queensland, Australia

As at May 31, 2019, the Company has earned a 100% interest in the Pegmont Property having paid option payments of AUD$2,250,000 (CAD$2,208,980), met expenditure requirements of $2,400,000, and drilled 17,000m to earn its interest. In connection with the Company exercising the option and as part of the final transfer of project titles, the Company also paid an advance royalty to Pegmont of AUD$3 million (CAD$2,824,200) and extension fees totaling AUD$450,000 (CAD$425,545) during the year ended May 31, 2019 to fully satisfy remaining requirements and complete its 100% acquisition of the Pegmont property. The Company received a royalty credit of the cash option payments of AUD$2.25 million and advanced royalty of AUD$3 million for a total of AUD$5.25 million, to be credited against future royalty payments.

The property is subject to a 1.25% net smelter return royalty (“NSR”), subject to the credit of AUD$5.0 million in favour of the Company. In the case where ore is sold rather than concentrate, a separate royalty formula allows for a royalty of AUD$1.05 per tonne of ore sold, indexed to lead prices and to be conveyed to the vendor, again subject to the AUD$5.0 million credit. Where ore that is sold contains silver at concentrations above 64 ppm, an additional royalty amount is payable, starting at AUD$0.06 per gram, indexed to the price of silver.

Killer Bore Property, Queensland, Australia

During the year ended May 31, 2022, the Company entered into an option agreement to acquire 100% of the Killer Bore exploration concession in Australia, located near its Pegmont Property. Pursuant to the terms of the agreement, the Company may acquire a 100% interest in the property by making the following minimum work commitments:

• a) $102,000 on exploration expenditures prior to the end of the 2[nd] anniversary (incurred during the year ended May 31, 2023); and

• b) $398,000 on exploration expenditure between the start of the 3rd anniversary and prior to the end of the 5th Anniversary;

During the period ended February 29, 2024, the option agreement was terminated.

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VENDETTA MINING CORP.

Notes to Condensed Interim Financial Statements (Unaudited - expressed in Canadian dollars)

Nine months ended February 29, 2024 and February 28, 2023

6. Exploration and evaluation assets (continued):

The Company shall grant the optionor a 2% NSR over the property. Exploration expenditures for the nine months ended February 29, 2024 are as follows:

		Pegmont		Killer Bore		Total
Analysis	$	897	$	-	$	897
Geological consulting		127,500		7,500		135,000
Permitting		47,484		-		47,484
Project management		3,205		-		3,205
Total for theperiod	$	179,086	$	7,500	$	186,586

Exploration expenditures for the nine months ended February 28, 2023 are as follows:

Pegmont Killer Bore	Total
Analysis $ 8,377 $ 857 Drilling 641,936 101,769 Field supplies and equipment 117,624 10,729 Geological consulting 247,922 40,662 Maps and reports 6,710 - Meals and accommodation 62,458 9,427 Permitting 38,861 - Project management 3,509 1,531 Transportation 27,834 9,880	$ 9,234 743,705 128,353 288,584 6,710 71,885 38,861 5,040 37,714
Total for theperiod $ 1,155,231 $ 174,855	$ 1,330,086

7. Lease liabilities:

During the year ended May 31, 2023, the Company entered into a new office lease with a related party (note 10) with a term of 24-months from May 1, 2023 and expected total payments of $82,560. Using an annual discount rate of 10%, the Company recognized a lease liability and corresponding right-of-use asset (note 5) of $71,775. The following is a reconciliation of the changes in lease liabilities for the period ended February 29, 2024:

February 29, 2024	May 31, 2023
Opening balance $ 69,061 Additions - Lease accretion 4,261 Payments (19,708)	$ - 71,775 571 (3,285)
Lease liabilities 53,614 Lease liabilities, current portion (46,890)	69,061 (34,386)
Lease liabilities,non-currentportion $ 6,724	$ 34,675

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VENDETTA MINING CORP.

Notes to Condensed Interim Financial Statements (Unaudited - expressed in Canadian dollars)

Nine months ended February 29, 2024 and February 28, 2023

7. Lease liabilities (continued):

The following summarizes the undiscounted minimum lease payments under lease liabilities:

Fiscal Year	Payment
2024 2025 Amount representing future lease accretion	$ 19,707 36,132 (2,225)
Lease liabilities	$ 53,614

8. Share capital:

• (a) Authorized:

Unlimited common shares without par value.

(b) Share issuances:

The company did not issue shares during the nine months ended February 29, 2024.

2023 transactions

• a) On October 19, 2022, the Company issued 1,080,000 common shares for settlement of previously vested PSUs. On issuance, the Company reclassified $216,000 from obligation to issue shares to share capital.

• b) On February 14, 2023, the Company closed a non-brokered private placement by issuing 18,699,974 units at a price of $0.05 per unit for gross proceeds of $934,999. Each unit is comprised of one common share and one half of one common share purchase warrant, exercisable for two years at a price of $0.06 per share. The Company paid finders fees of $9,100 and incurred additional closing costs of $35,256 in connection with the financing.

• (c) Warrants:

Details of activity in warrants for the period ended February 29, 2024 and February 28, 2023 are as follows:

Number				Number	Exercise
outstanding			Expired/	outstanding	price
May31,2023	Granted	Exercised	Cancelled	Feb 29,2024	per share	Expirydate
6,201,138	-	-	6,201,138	-	0.06	June 30, 2023
4,791,668	-	-	4,791,668	-	0.09	Nov 16, 2023
2,750,104	-	-	2,750,104	-	0.09	Dec 14, 2023
5,216,667	-	-	5,216,667	-	0.06	Feb 23, 2024
5,307,500	-	-	-	5,307,500	0.07	Aug 26, 2024
3,975,220	-	-	-	3,975,220	0.07	Oct 22, 2024
9,349,987	-	-	-	9,349,987	0.06	Feb 14, 2025
37,592,284	-	-	18,959,577	18,632,707
$0.07	$0.00	$0.00	$0.07	$0.06(weighted average exerciseprice)

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VENDETTA MINING CORP.

Notes to Condensed Interim Financial Statements (Unaudited - expressed in Canadian dollars)

Nine months ended February 29, 2024 and February 28, 2023

8. Share capital (continued):

• (c) Warrants (continued):

Number				Number	Exercise
outstanding			Expired/	outstanding	price
May31,2022	Granted	Exercised	Cancelled	May31,2023	per share	Expirydate
2,886,250	-	-	2,866,250	-	0.13	June 3, 2022
11,533,332	-	-	11,533,332	-	0.13	July 30, 2022
13,187,050	-	3,525,000	9,662,050	-	0.06	May 5, 2023
6,201,138	-	-	-	6,201,138	0.06	June 30, 2023
4,791,668	-	-	-	4,791,668	0.09	Nov 16, 2023
2,750,104	-	-	-	2,750,104	0.09	Dec 14, 2023
5,216,667	-	-	-	5,216,667	0.06	Feb 23, 2024
5,307,500	-	-	-	5,307,500	0.07	Aug 26, 2024
3,975,220	-	-	-	3,975,220	0.07	Oct 22, 2024
-	9,349,987	-	-	9,349,987	0.06	Feb 14, 2025
55,848,929	9,349,987	3,525,000	24,081,632	37,592,284
$0.09	$0.06	$0.06	$0.10	$0.07(weighted average exerciseprice)

(d) Stock options:

The Company has a stock option plan, which authorizes the Board of Directors to grant options to directors, officers, employees and consultants to acquire up to 10% of the issued and outstanding common shares of the Company. Under the plan, the exercise price of each option may not be less than market price of the Company’s stock calculated on the date of the grant less the applicable discount. The options can be granted for a maximum term of 10 years. The Company’s stock option plan contains no vesting requirements but permits the board of directors to specify a vesting schedule in its discretion. There was no stock option activity during the period ended February 29, 2024 and February 28, 2023.

• (e) Performance Share Units:

During the year ended May 31, 2018, the Company granted 2,700,000 Performance Share Units (PSU) to the Company’s directors, of which 1,080,000, with a value of $216,000, vested during the year ended May 31, 2019, upon the achievement of related performance milestones. During the year ended May 31, 2023, the Company issued 1,080,000 common shares for settlement of the vested PSUs and reclassified $216,000 from commitment to issue shares to share capital.

9. Segmented information:

The Company’s business consists of one reportable segment being resource exploration. Details about geographic areas as at February 29, 2024 and February 28, 2023 are as follows:

Non-current assets		February29,2024		May 31,2023
Australia	$	6,011,183	$	6,011,183
Total	$	6,011,183	$	6,011,183

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VENDETTA MINING CORP.

Notes to Condensed Interim Financial Statements (Unaudited - expressed in Canadian dollars)

Nine months ended February 29, 2024 and February 28, 2023

10. Related party transactions:

Key management personnel consist of directors and senior management including the President and Chief Executive Officer, Chief Financial Officer, and Corporate Secretary.

The Company paid or accrued the following amounts to key management personnel or companies controlled by them:

		Nine months	Nine months	ended
		February 29,		February 28,
		2024		2023
Management fees, consulting fees, and accounting fees to key
management personnel or companies controlled by key
management personnel	$	177,750	$	348,500
Geological consulting fees to a company controlled by a director		135,000		135,000
Office, administration, rent and accounting costs to companies
controlled bykeymanagement		-		27,375
	$	312,750	$	510,875

During the year ended May 31, 2023, the Company entered into a lease agreement with a company with an office and director in common (Note 7). During the period ended February 29, 2024, the Company made payments of $19,708 towards the lease.

As at February 29, 2024, included in accounts payable and accrued liabilities is $598,153 (May 31, 2023 - $373,227) due to directors, management, or companies controlled by them and former related parties. Amounts due to related parties are unsecured, have no fixed terms of repayment, and are non-interest bearing.

11. Financial instruments:

The Company’s cash is classified at amortized cost. The carrying values of receivables, and accounts payable and accrued liabilities approximate their fair values due to their short terms to maturity.

• (a) Financial risk factors:

Credit risk

Credit risk arises from the possibility that counterparties may be unable to fulfill their commitments to the Company. The Company’s credit risk is primarily attributable to its cash and receivables. The carrying value of this instrument represents the Company’s maximum exposure to credit risk. The Company manages and limits exposure to credit risk by maintaining its cash with high-credit quality financial institutions. The Company does not have financial assets that are invested in asset backed commercial paper. Receivables are primarily due from a government agency.

Liquidity risk

Liquidity risk is the risk that the Company cannot meet its financial obligations associated with financial liabilities in full. The Company manages liquidity risk through the management of its capital structure, as outlined in Note 11(b) of these financial statements. The Company’s expenditure commitments, pursuant to option agreements related to resource properties, are disclosed in Note 6. The Company is exposed to liquidity risk.

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VENDETTA MINING CORP.

Notes to Condensed Interim Financial Statements (Unaudited - expressed in Canadian dollars)

Nine months ended February 29, 2024 and February 28, 2023

11. Financial instruments (continued):

• (a) Financial risk factors (continued):

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rates.

The Company does not have any significant interest-bearing financial assets.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency rates. The Company’s functional and presentation currency is the Canadian dollar. The Company incurs foreign currency risk on purchases that are denominated in a currency other than the functional currency of the Company, which will have an impact on the profitability of the Company and may also affect the value of the Company’s assets, liabilities and the amount of shareholders’ equity. The Company’s main risks are associated with fluctuations in the Australian dollar due to transactions related to the Pegmont project.

Foreign assets and liabilities are translated based on the foreign currency translation method described in Note 2(b). A 10% change in the foreign exchange rate between the Canadian and U.S. and Australian dollar would result in a fluctuation of approximately $3,033 in the net loss realized for the period. The Company does not enter into any foreign exchange hedging contracts.

(b) Capital management:

The Company’s objectives of capital management are intended to safeguard the Company’s ability to support the Company’s exploration and evaluation of its resource properties and support any expansion plans. The capital of the Company consists of the items included in shareholders’ equity.

The Company manages the capital structure and makes adjustments in light of changes in economic conditions and the risk characteristics of the Company’s underlying assets. To effectively manage the entity’s capital requirements, the Company has in place a planning and budgeting process to help determine the funds required to ensure the Company has the appropriate liquidity to meet its financial objectives. The Company may issue new shares or seek debt financing to ensure that there is sufficient working capital to meet its shortterm business requirements. The Company is not subject to externally imposed capital requirements. There were no changes in the Company’s approach to capital management during the period.

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