Viscount Mining Corp. — Interim / Quarterly Report 2021

Apr 29, 2021

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

February 28, 2021 and February 29, 2020 (Unaudited)

(Expressed in Canadian Dollars)

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

NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The accompanying unaudited condensed interim consolidated financial statements of Viscount Mining Corp. for the six months ended February 28, 2021 and 2020, have been prepared by and are the responsibility of the Company’s management.

The Company’s independent auditor has not performed a review of these condensed interim consolidated financial statements.

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

VISCOUNT MINING CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian dollars) (Unaudited)

		As at	As at
		February 28, 2021	August 31, 2020
	Notes	$	$
ASSETS
Current assets
Cash	3	3,613,156	4,264,224
Amounts receivable andprepaid expenses	4	120,976	28,750
		3,734,132	4,292,974
Reclamation bond		26,172	24,172
Exploration and evaluation properties	5	4,344,396	3,874,688
Total Assets		8,104,700	8,191,834
LIABILITIES
Current liabilities
Trade payables and accrued liabilities		115,831	285,216
Deferred recoveries	5-A	74,846	-
Loans payable	6	-	40,000
Amounts due to relatedparties	7	5,792	114,033
Total Liabilities		196,469	439,249
SHAREHOLDERS’ EQUITY
Share capital	8	17,696,460	16,657,488
Subscriptions receivable		(185,875)	(76,500)
Reserves	8	1,780,410	3,022,847
Accumulated deficit		(11,382,764)	(11,851,250)
Total shareholders’ equity		7,908,231	7,752,585
Total Shareholders’ Equity and Liabilities		8,104,700	8,191,834

Nature and Continuance of Operations (Note 1) Commitments and Contingency (Note 10)

Events Occurring After the Reporting Date (Note 14)

These condensed interim consolidated financial statements are authorized for issuance by the Board of Directors on April 28, 2021

On behalf of the Board:

“Jim MacKenzie” Director “William Macdonald” Director

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

VISCOUNT MINING CORP.

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

		Six Months Ended	Six Months Ended	For the Three	For the Three
	Notes	February 28, 2021	February 29, 2020	February 28, 2021	February 29, 2020
		$	$	$	$
Expenses
Bank charges, interest and fees		1,088	424	358	65
Consulting	7	264,919	202,206	110,463	169,632
Insurance		37,035	27,184	23,371	13,014
Legal and accounting	7	84,326	47,187	40,859	51,939
Office and miscellaneous		11,116	1,706	836	948
Promotion		326,460	40,089	52,485	16,938
Transfer agent and filing fees		20,984	15,905	13,910	15,828
Travel		-	2,559	-	2,559
Total expenses		(745,928)	(337,260)	(242,282)	(270,923)
Net loss		(745,928)	(337,260)	(242,282)	(270,923)
Foreign exchange gain		3,888	736	1,496	738
Government assistance	6	10,000	-	-	-
Interest andpenalties		3,172	(228,616)	3,309	(142)
Net loss and comprehensive loss for theyear		(728,868)	(565,140)	(237,477)	(270,327)
Lossper share, basic and diluted		(0.01)	(0.01)	(0.00)	(0.01)
Weighted average number of common shares
outstanding, basic and diluted		82,218,168	54,154,316	54,360,750	53,841,129

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

VISCOUNT MINING CORP. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in Canadian dollars) (Unaudited)

Cash flows used in operating activities Net loss for the year Adjustments for non-cash items: COVID loan forgiven Share-based payments Changes in operating assets and liabilities: Related parties Receivable and prepaid expenses Deferred recoveries Reclamation bond Tradepayables and accrued liabilities	Six Months Ended Six Months Ended
	February 28, 2021 February 29, 2020 $ $
	(728,868) (565,140)
	(10,000) - - 224,000 (108,241) 176,948 (92,226) 4,219 74,846 - (2,000) ‐ (169,385) 78,034
	(1,035,874) (81,939)
Cash flows used in investing activities Exploration and evaluationproperties expenditures	(469,708) 9,107
	(469,708) 9,107
Cash flows from financing activities
Issuance of common shares Repayment of COVID loan net of forgiveness Proceeds from loans	884,514 - (30,000) - - 50,000
	854,514 50,000
Decrease in cash Cash, beginning of period	(651,068) (22,832) 4,264,224 24,432
Cash, end ofperiod	3,613,156 1,600

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

VISCOUNT MINING CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED FEBRUARY 28, 2021

(Expressed in Canadian dollars)

(Unaudited)

		Number of	Share	Warrant	Option	Subscriptions	Subscriptions
	Notes	Shares	Capital	Reserve	Reserve	Receivable		Deficit	Total
			$	$	$	$		$	$
Balance - August 31, 2019		53,841,129	10,464,337	242,717	1,426,122		-	**(9,748,396) **	2,384,780
Common shares issued for exploration and
evaluation properties		45,000	9,900	-	-		-	-	9,900
Share based payments		850,000	224,000	-	-		-	-	224,000
Net lossyear to date		-	-	-	-		-	(565,140)	(565,140)
Balance - February 29, 2020		54,736,129	10,698,237	242,717	1,426,122		-	**(10,313,536) **	2,053,540
Balance - August 31, 2020		81,215,462	16,657,488	535,608	2,487,239	**(76,500) **		**(11,851,250) **	7,752,585
Exercise of options	9D	117,000	45,490	-	(19,750)		-	-	25,740
Adjustment expiry of Options		-	-	-	(954,637)		-	954,637	-
Exercise of warrants	9C	2,859,333	993,482	(25,333)	-	(109,375)		-	858,774
Adjustment expiry of warrants				(242,717)	-		-	242,717	-
Net lossyear to date		-	-	-	-		-	(728,868)	(728,868)
Balance - February 28, 2021		84,191,795	17,696,460	267,558	1,512,852	**(185,875) **		**(11,382,764) **	7,908,231

The accompanying notes are an integral part of these condensed interim consolidated financial statements Page | 6

VISCOUNT MINING CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2020 (Unaudited)

1. Nature and Continuance of Operations

Viscount Mining Corp. (the “Company”) was incorporated under the British Columbia Business Corporations Act on October 26, 2011. The Company’s registered office is located at 409 - 221 W. Esplanade, North Vancouver BC, V7M 3J3. The Company is listed on the TSX Venture Exchange (TSXV”) and trades under the symbol “VML”.

The Company is an exploration stage company, and its principal business activity is natural resource exploration, focusing on resources located in the states of Nevada and Colorado in the USA. Mining and exploration involve a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The Company has no source of revenue and has significant cash requirements to conduct its planned exploration, meet its administrative overhead and maintain its resource interests.

The Company had cash of $3,613,156 at February 28, 2021 (August 31, 2020 - $4,264,224) and working capital of $3,537,663 (August 31, 2020 - $3,853,725), but management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. For the six-month period ended February 28,2021, the Company had no source of operating revenues, incurred an operating loss of $728,867 (2020 - $565,140) and, as at that date, had an accumulated deficit of $11,382,742 (August 31, 2020 deficit of - $11,851,250).

Management has assessed that this working capital is sufficient for the Company to continue as a going concern beyond one year. If the going concern assumption were not appropriate for these consolidated financial statements it would be necessary to restate the Company’s assets and liabilities on a liquidation basis.

In March 2020, the World Health Organization declared the coronavirus COVID-19 a global pandemic. A situation that continues at the time of these statements being published. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or ability to raise funds.

The recoverability of the Company’s investment in and expenditures on resource properties is dependent on several factors, including the discovery of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development of these properties, and future profitable production or proceeds from disposition of resource interests.

2. Significant Accounting Policies

Statement of Compliance

These condensed interim financial statements have been prepared in accordance with International Accounting Standards (“IAS”) 34 – Interim Financial Reporting. These condensed interim financial statements do not include all of the information required for annual financial statements and should be read in conjunction with the Company’s audited financial statements for the year ended August 31, 2020, which were prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These condensed interim financial statements have been prepared following the same accounting policies applied to the Company’s audited August 31, 2020 financial statements.

Basis of Preparation

These condensed interim consolidated financial statements have been prepared on the historical cost basis except for financial instruments classified as fair value through profit and loss. In addition, these financial statements have been prepared using the accrual basis of accounting, except for the cash flow information. The presentation and functional currency of the Company and its subsidiaries is the Canadian dollar.

00The preparation of condensed interim consolidated financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. The areas involving a higher

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VISCOUNT MINING CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2021 (Unaudited)

degree of judgment of complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed below.

3. Cash

	As at	As at
	February 28, 2021	August 31, 2020
	$	$
Denominated in Canadian dollars	3,454,671	4,256,232
Denominated in US dollars	158,485	7,992
	3,613,156	4,264,224

4. Amounts Receivable and Prepaid Expenses

Amounts receivable and prepaid expenses consist of the following:

unts receivable and prepaid expenses consist of the	following:
	As at	As at
	February 28, 2021 August 31, 2020
	$	$
Goods and Services Tax receivable	33,413	5,640
Prepaid exploration-Colorado drilling deposit	65,000	-
Prepaid insurance and travel expenses	22,563	23,110
	120,976	28,750

Amounts receivable are non-interest bearing, unsecured and have settlement dates within one year.

5. Exploration and Evaluation Properties

Exploration and evaluation expenditures by project as at February 28, 2021 and August 31, 2020 are as follows:

follows:
	Six Months Ended	Year ended
	February 28, 2021	August 31, 2020
	$	$
Balance beginning of year	3,874,688	3,197,211
Property acquisitions	5,985	583,542
Staking new claims and claim maintenance	6,070	88,733
Consulting (Note 8)	156,035	16,598
Drilling and other	301,618	334
Recoveries	-	(11,730)
Total	4,344,396	3,874,688

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VISCOUNT MINING CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2021 (Unaudited)

A summary of the changes in the Company’s exploration and evaluation properties for the six-month period ended February 28, 2021 and year ended August 31, 2020 are as follows:

	As at	As at
	February 28, 2021	August 31, 2020
	$	$
Nevada Properties
Acquisition and exploration costs	2,172,065	2,126,778
Recoveries	(787,575)	(787,575)
Colorado properties
Acquisition and exploration costs	3,018,466	2,578,826
Recoveries	(58,560)	(43,341)
Total	4,344,396	3,874,688

Nevada Properties , described collectively as the Cherry Creek Project, is focused on exploration in the immediate vicinity of an area commonly known as the Cherry Creek Mining District, located approximately 50 miles north of the town of Ely, in White Pine County, Nevada.

In January 2021 Viscount entered into an exploration earn-in agreement with a wholly owned subsidiary of Centerra Gold Inc. to earn up to a 70% interest in the Cherry Creek Project.

Under terms of the Agreement Centerra has the right to acquire a 70% interest in the Property through (a) making annual payments totaling $250,000 USD over a 4 year period, and (b) spending $8,000,000 USD on mineral exploration costs on the Property over 4 years. If Centerra’s option vests, then Viscount and Centerra will enter into a joint venture agreement:

Centerra would hold an initial interest of 70% in the Joint Venture, including the Property and any properties in the Area of Interest, and Viscount would hold an initial interest of 30% in the Joint Venture, including the Property and any properties in the Area of Interest. To maintain their respective percentage interest, each Party would then, upon provision of a reasonable amount of notice, contribute on a pro rata basis to further exploration and any potential development or mining on the Property and/or the properties within the Area of Interest.

The Parties would, in the Joint Venture Agreement, establish a management committee for which the representation of each Party will, at a minimum, be in proportion to its percentage interest in the Joint Venture. This management committee will propose and determine the exploration and potential development of mining on the Property and/or the properties within the Area of Interest.

Initially, Viscount will be the project manager for the exploration program, with Centerra providing funding in advance. Any unexpended funding is represented as deferred recoveries.

Colorado Properties described collectively as Silver Cliff.

On August 13, 2014, the Company entered into an option agreement (the “Silver Cliff Agreement”) with David C. and Debra J. Knight Living Trust (the “Owner”), whereby the Owner has agreed to grant an option to the Company to acquire an undivided 100% interest in the Silver Cliff project (the “Silver Cliff Property”), effective September 15, 2014. Pursuant to the agreement, as amended, the Company agreed to the following:

• 1) Issuing to the Owner 200,000 shares and 200,000 warrants (issued).

• 2) Payments made on behalf of the Owner for claim rental fees due to the U.S. Bureau of Land Management (“BLM”).

• 3) Making payments to the Owner in the aggregate amount of US$3,000,000. As of August 31, 2020, US$190,000 has been paid, including US$105,000 paid in fiscal 2020. Remaining option payments are as follows:

• a. US$100,000 on the seventh anniversary, September 15, 2021;

• b. US$100,000 on the eight anniversary, September 15, 2022;

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VISCOUNT MINING CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2021 (Unaudited)

  - c. US$100,000 on the ninth anniversary, September 15, 2023;

  - d. US$100,000 on the tenth anniversary, September 15, 2024;

  - e. US$150,000 on the eleventh anniversary, September 15, 2025;

  - f. US$200,000 on the twelfth anniversary, September 15, 2026; and

  - g. Paying the remaining outstanding balance of the required US$3,000,000.

• 4) The Company entered into a series of amending agreements in fiscal 2020 to delay the fifth anniversary payment. Pursuant to these amendments the Company issued 949,000 common shares valued at $253,670 and paid cash of US$5,000.

• 5) Royalty payments to the Owner of 2% of the net smelter returns (“NSR”) and issuance of an additional 550,000 shares and 550,000 warrants upon the commencement of commercial production.

• 6) The Company agreed to issue Kingsmere Mining Ltd a finder’s fee of 500,000 shares. As of August 30, 2020, 150,000 shares have been issued, including 45,000 shares issued in fiscal 2020. Remaining shares will be issued as follows:

  • a. 50,000 shares on the sixth anniversary, September 15, 2020 (issued subsequently);

  • b. 50,000 shares on the seventh anniversary, September 15, 2021;

  • c. 75,000 shares on the eighth anniversary, September 15, 2022;

  • d. 75,000 shares on the ninth anniversary, September 15, 2023;

  • e. 100,000 shares on the tenth anniversary, September 15, 2024.

• 7) In fiscal 2017 the Company increased its land holding at the Silver Cliff project by signing a series of mineral lease agreements. As of August 31, 2020 US$292,600 has been paid including US$74,000 in fiscal 2020. Remaining option payments are as follows:

  • a. US$87,500 on the fourth anniversary, between May 12 and June 5, 2021;

  • b. US$91,500 on the fifth anniversary, between May 12 and June 5, 2022;

  • c. US$96,000 on the sixth anniversary, between May 12 and June 5, 2023;

  • d. US$111,500 on the seventh anniversary, between May 12 and June 5, 2024;

  • e. US$146,730 on the eighth anniversary, between May 12 and June 5, 2025;

  • f. US$198,040 on the ninth anniversary, between May 12 and June 5, 2026;

  • g. US$1,208,000 on the tenth anniversary, between May 12 and June 5, 2027.

6. Loans payable

During fiscal 2020, the Company borrowed $40,000 from the Government of Canada under a COVID relief program. On November 4, 2020, the Company repaid the loan net of forgiveness of $10,000.

7. Related Party Transactions

On February 28, 2021, the balance due to related parties, who are officers, directors and/or shareholders, was $5,792 (August 31, 2020 - $114,033). Amounts owing relate to consulting services and advances on behalf of the Company provide by the related parties or by companies they controlled and for loans to the Company by related parties. The amounts owed to related parties are summarized as follows:

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VISCOUNT MINING CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2021 (Unaudited)

The key management personnel compensation for the six-month period ended February 28, 2021 and 2020, are summarized as follows:

ollows:
	February 28, 2021	February 29, 2020
	$	$
Chief Financial Officer	37,000	36,000
Directors/Managers	179,542	172,800
Director Legal fees	118	1,290
	216,660	210,090

During the six months period ended February 28, 2021 $6,742 (2020 - $Nil) consulting fees to related parties are capitalized in exploration and evaluation properties.

8. Share Capital

A. Authorized

On February 28, 2021, the authorized share capital consists of an unlimited number of common shares without par value and without special rights or restrictions attached and an unlimited number of preferred shares without par value and with special rights or restrictions.

B. Issued and Outstanding

On February 28, 2021, the total issued, and outstanding share capital was 84,191,795 common shares with no par value (August 31, 2020 – 81,215,462).

Share capital transactions of the Company during the six-month period ended February 28, 2021 and year ended August 31, 2020 are summarized as follows:

• a) During the six months ended February 28, 2021, 2,859,333 warrants were exercised between $0.28 and $0.35 per share for gross proceeds of $968,149. Of this amount, $103,375 remains unpaid and is reflected as subscriptions receivable. The warrant reserve was reduced by $25,333 and share capital was increased by the off- setting amount related to these warrants.

• b) During the six months ended February 28, 2021, 117,000 options were exercised at $0.22 per common share gross proceeds of $25,740. The option reserve was reduced by $19,750 and share capital was increased by the off- setting amount related to these options.

• c) During the year ended August 30, 2020, the Company entered into extension agreements related to the Silver Cliff property (Note 5) whereby the Company issued 949,000 common shares valued at $253,670 to extend payments due on the Colorado properties.

• d) On August 5, 2020, the Company closed its non-brokered private placement and issued 23,958,333 units of the Company at a price of $0.24 per unit for gross proceeds of $5,750,000 of which $302,270 was paid for through a reduction of accounts payable and $24,000 remains receivable. Each unit consists of one common share of the Company and one share purchase warrant. Each warrant entitles the holder thereof to acquire one additional share at a price of $0.32 for a term of two years. In connection with the closing, the Company paid cash commissions of $375,228 and issued 1,539,687 finder’s warrants with a fair value of $292,891, using the Black Scholes valuation methodology assuming a risk-free interest rate of 0.27% per annum, an expected life of 2 years, volatility of 84.99%, and no expected dividend. The finder’s warrants have the same terms as the unit warrants.

• e) On December 2, 2019, the Company issued 45,000 common shares valued at $9,900 to Kingsmere Mining Ltd. in accordance with the Finders Fees agreement between the Company and Kingsmere (Note 5).

C. Warrants

The following is a summary of the changes in the Company’s share purchase warrants for the six-month period ended February 28, 2021 and August 31, 2020:

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VISCOUNT MINING CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2021 (Unaudited)

		February	28, 2021	August 31, 2020	August 31, 2020
		Number of	Weighted	Number of	Weighted
		Warrants	average	Warrants	average
		Outstanding	exercise price	Outstanding	exercise price
			$		$
	Outstanding, beginning of year	29,434,020	0.32	8,986,000	0.35
	Exercised warrants	(2,859,333)	0.34	(2,422,000)	0.35
	Expired warrants	(1,385,000)	0.35	(2,628,000)	0.35
	Warrants issued	-	-	25,498,020	0.32
	Outstanding,end ofperiod	25,189,687	0.32	29,434,020	0.32
	e following table summarizes information regarding share purchase			warrants outstanding on Februa
	, 2021 and August 31, 2020:
		February	28, 2021	August 31, 2020
		Number of	Weighted	Number of	Weighted
		Warrants	average	Warrants	average
		Outstanding	exercise price	Outstanding	exercise price
			$		$
	Outstanding, beginning of year	29,434,020	0.32	8,986,000	0.35
	Exercised warrants	(2,859,333)	0.34	(2,422,000)	0.35
	Expired warrants	(1,385,000)	0.35	(2,628,000)	0.35
	Warrants issued	-	-	25,498,020	0.32
	Outstanding,end ofperiod	25,189,687	0.32	29,434,020	0.32

The following table summarizes information regarding share purchase warrants outstanding on February 28, 2021 and August 31, 2020:

D. Stock Option Plan

On April 4, 2012, the Company adopted a stock option plan (the “Plan”) that allows the Company to issue options to certain directors, officers, employees, and consultants of the Company. Options issued under the Plan shall not exceed 10% of the shares issued and outstanding at the time of granting of the options. Options granted under the Plan may have a maximum term of ten years. Stock options granted under the Plan may be subject to vesting terms, which may be imposed at the discretion of the directors.

• a) During the six months ended February 28, 2021, 117,000 options were exercised at $0.22 for proceeds of $25,740.

• b) On August 31, 2020, 3,800,000 five-year options were issued at an exercise price of $0.40 to officers, directors, and consultants. The options were valued at $1,056,952, using the Black Scholes valuation methodology assuming a risk-free interest rate of 0.37% per annum, an expected life of 5 years, volatility of 179.37%, and no expected dividend.

• c) On August 5, 2020, 250,000 five-year options were issued at an exercise price of $0.40 were issued for services. The options were valued at $41,758 using the Black Scholes valuation methodology assuming a risk-free interest rate of 0.27% per annum, an expected life of 2 months, volatility of 84.99%, and no expected dividend.

• d) On January 22, 2019, 971,000 five-year options were issued at an exercise price of $0.22 to officers, directors and consultants. The options were valued at $163,875, using the Black Scholes valuation methodology assuming a risk-free interest rate of 1.89% per annum, an expected life of 5 years, volatility of 99.67%, and no expected dividend.

The following is a summary of the changes in the Company’s stock options six-month period ended February 28, 2021 and for the year ended August 31, 2020:

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VISCOUNT MINING CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2021 (Unaudited)

	August 31, 2020 February 28, 2021
	Number of Options Outstanding Weighted average exerciseprice Number of Options Outstanding Weighted average exerciseprice
Outstanding, beginning of year Cancelled/Expired Exercised Granted	$ $ 6,500,800 0.30 4,220,800 0.30 (225,000) 0.57 (1,770,000) 0.57 (117,000) 0.22 - - - 0.40 4,050,000 0.40
Outstanding,end ofperiod	6,158,800 0.38 6,500,800 0.30

The following table summarizes information regarding stock options outstanding and exercisable as at February 28, 2021 and the year ended August 31, 2020:

9. Supplemental Cash Flow Information

Included in trade payables and accrued liabilities on February 28, 2021 was $Nil (August 31, 2020 - $94,999) incurred on exploration and evaluation expenditures and $Nil (2019 - $50,889) in due to related parties.

During the six months February 28, 2021, no common shares were issued for exploration and evaluation properties (year ended August 31, 2020, 994,000 common shares valued at $263,570) and no warrants were issued for exploration and evaluation properties (2020 – $Nil).

The Company issued warrants for share issue costs valued at $Nil (2020 - $292,891), as part of a private placement.

10. Commitments and Contingency

The Company is committed to making cash payments, incurring exploration expenditures and/or issuing common shares pursuant to its exploration and evaluation property agreements (Note 5).

11. Capital Management

The Company’s policy is to maintain a strong capital base so as to maintain investor and creditor confidence and to sustain future development of the business. The capital structure of the Company consists of equity, comprising share capital, net of accumulated deficit. The Company manages the capital structure and makes adjustments to it in light of changes in the economic conditions and the risk characteristics of the underlying assets. The Company manages its capital structure through the issuance of new shares, acquisition or disposition of assets or adjustment of cash. The Company does not have any major capital expenditures committed for the coming year. Management reviews the capital structure on a regular basis to ensure that the above-noted objectives are met. There were no changes in the Company’s approach to capital management during the year. The Company is not subject to any externally imposed capital requirements.

12. Financial Instruments and Risk Management

Fair values

The Company’s financial instruments are cash, accounts receivable, trade payables, deferred recoveries, amounts due to related parties and subscriptions receivable. The Company’s cash is measured at fair value under the fair value hierarchy based on level one quoted prices in active markets for identical assets or liabilities. The fair values of the Company’s remaining financial instruments approximates carrying value, due to the short term to maturity.

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk. Details are set out in the Company’s August 31, 2020 audited consolidated financial statements.

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NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2021 (Unaudited)

VISCOUNT MINING CORP.

13. Segmented Information

Segmented Information
Year ended February 28, 2021	Canada	USA	Total
	$	$	$
Net loss	728,889	-	728,889
Current assets	3,734,132	-	3,734,132
Reclamation bond	-	26,172	26,172
Exploration and evaluationproperties	-	4,344,396	4,344,396
Total assets	3,734,132	4,370,568	8,104,700
Year ended August 31, 2020	Canada	USA	Total
	$	$	$
Net loss	2,102,854	-	2,102,854
Current assets	4,292,974	-	4,292,974
Reclamation bond	-	24,172	24,172
Exploration and evaluationproperties	-	3,874,688	3,874,688
Total assets	4,292,974	3,898,860	8,191,834

The Company’s only business activity is exploration and evaluation of their properties in the USA.

14. Events Occurring after the Reporting Date

The Company incurred recoverable exploration costs on the Cherry Creek property of $237,000 (Note 5-A) and incurred exploration cost of $52,000 on the Colorado property.

On April 15, 2021, 300,000 warrants were exercised for $96,000.

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