Viscount Mining Corp. — Interim / Quarterly Report 2022

Apr 29, 2022

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2022 and 2021

(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. (the “Company”) for the six months ended February 28, 2022 and 2021 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. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian dollars)

(Expressed in Canadian dollars)
		As at	As at
		February 28, 2022	August 31, 2021
	Notes	$	$
ASSETS
Current assets
Cash	3	1,629,409	2,571,328
Amounts receivable and prepaid expenses	4	137,796	97,286
Recoverable from Joint Venture Partner	5A	237,434	192,230
		2,004,639	2,860,844
Reclamation bond		30,005	26,172
Exploration and evaluationproperties	5	5,415,003	4,878,419
Total Assets		7,449,647	7,765,435
LIABILITIES
Current liabilities
Tradepayables and accrued liabilities		124,102	79,643
Total Liabilities		124,102	79,643
SHAREHOLDERS’ EQUITY
Share capital	7	18,329,023	17,958,623
Subscriptions receivable		(185,875)	(185,875)
Reserves	8	2,192,440	2,241,778
Accumulated deficit		(13,010,043)	(12,328,734)
Total shareholders’ equity		7,325,545	7,685,792
Total Shareholders’ Equity and Liabilities		7,449,647	7,765,435

Nature and Continuance of Operations (Note 1) Events Occurring After the Reporting Date (Note 13)

These consolidated financial statements are authorized for issuance by the Board of Directors on April 19, 2022

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.

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

(Expressed in Canadian dollars)
		Six Months Ended	Six Months Ended	Three Months Ended	Three Months Ended
	Notes	February 28, 2022	February 28, 2021	February 28, 2022	February 28, 2021
		$	$	$	$
Expenses
Bank charges, interest and fees		1,649	1,088	396	358
Consulting and management compensation	6	306,514	264,919	148,049	110,463
Insurance		31,093	37,035	24,760	23,371
Legal and accounting		141,669	84,326	100,217	40,859
Office and miscellaneous		17,104	11,116	9,995	836
Promotion		293,222	326,460	239,184	52,485
Transfer agent and filingfees		7,423	20,984	1,241	13,910
Total expenses		(798,674)	(745,928)	(523,842)	(242,282)
Other income
Government assistance	6	-	10,000	-	-
Interest Income		906	-	-	-
Centerra management fees	5	78,945	-	64,745	-
Net loss		(718,823)	(735,928)	(459,097)	(242,282)
Foreign exchange gain/(loss)		(11,824)	3,888	(14,216)	1,496
Interest andpenalties		-	3,172	-	3,309
Net loss and comprehensive loss		(730,647)	(728,868)	(473,313)	(237,477)
Loss per share, basic and diluted		(0.008)	(0.009)	(0.01)	(0.00)
Weighted average number of common shares
outstanding, basic and diluted		86,106,962	82,218,168	85,392,128	54,360,750

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

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

VISCOUNT MINING CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in Canadian dollars)
	Six Months Ended	Six Months Ended
	February 28, 2022	February 28, 2021
	$	$
Cash flows used in operating activities
Net loss year to date	(730,647)	(728,868)
Adjustments for non-cash items:
Government assistance	-	(10,000)
Changes in operating assets and liabilities:
Related parties	-	(108,241)
Receivable and prepaid expenses	(40,510)	(92,226)
Recoverable from Joint Venture Partner	(45,204)	-
Deferred recoveries	-	74,846
Reclamation bond	(3,833)	(2,000)
Tradepayables and accrued liabilities	44,459	(169,385)
	(775,735)	(1,035,874)
Cash flows used in investing activities
Exploration and evaluationproperties expenditures	(520,584)	(469,708)
	(520,584)	(469,708)
Cash flows from financing activities
Issuance of common shares-warrants exercised	354,400	884,514
Repayment of COVID loan net of Government Assistance	-	(30,000)
	354,400	854,514
Increase/(decrease) in cash	(941,919)	(651,068)
Cash, beginning ofyear	2,571,328	4,264,224
Cash, end ofquarter	1,629,409	3,613,156

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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, 2022 (Expressed in Canadian dollars)

Balance - August 31, 2020	81,215,462 16,657,488 535,608 2,487,239 (76,500) (11,851,250) 7,752,585 117,000 45,490 - (19,750) - -25,740 50,000 21,000 - - - -21,000 - - - (296,214) - 296,214 - - - - (715,866) - 715,866 - 3,567,000 1,234,645 (27,425) - (109,375) -1,097,845 - - (242,742) - - 242,742 - - - - 520,928 - -520,928 - - - - -(1,732,306) (1,732,306) 84,949,462 17,958,623 265,441 1,976,337 (185,875) (12,328,734) 7,685,792 84,949,462 17,958,623 265,441 1,976,337 (185,875) (12,328,734) 7,685,792 50,000 16,000 - - - -16,000 - - - (49,338) - 49,338 - 1,107,500 354,400 - - - -354,400 - - - - -(730,647) (730,647) 86,106,962 18,329,023 265,441 1,926,999 (185,875) (13,010,043) 7,325,545
Exercise of options 8D Shares issued for mineral property Expiry of options Adjustment expiry of Options Exercise of warrants 8C Adjustment expiry of warrants Share based payments options issued 8D Net lossyear to date
Balance - February 28, 2021	84,949,462 17,958,623 265,441 1,976,337 (185,875) (12,328,734) 7,685,792
Balance - August 31, 2021
Shares issued for mineral property Expiry of options Exercise of warrants 7C Net lossyear to date
Balance - February 28, 2022

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

VISCOUNT MINING CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2022 (Expressed in Canadian Dollars)

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 $1,629,409 on February 28, 2022 (August 31, 2021 - $2,571,328) and working capital of $1,880,537 (August 31, 2021 - $2,781,201), 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 months ended February 28, 2022, the Company had no source of operating revenues, incurred an operating loss of $730,647 (February 28, 2021 - $728,868) and, as at that date, had an accumulated deficit of $13,010,043 (August 31, 2021 - $12,328,734).

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.

The recent outbreak of the coronavirus, also known as "COVID-19", has spread across the globe and is impacting worldwide economic activity. Conditions surrounding the coronavirus continue to rapidly evolve and government authorities have implemented emergency measures to mitigate the spread of the virus. The outbreak and the related mitigation measures may have an adverse impact on global economic conditions as well as on the Company’s business activities. The extent to which the coronavirus may impact the Company’s business activities will depend on future developments, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions, business disruptions, and the effectiveness of actions taken in Canada and other countries to contain and treat the disease. These events are highly uncertain and as such, the Company cannot determine their financial impact at this time. While certain restrictions are being relaxed, it is unclear when the world will return to the previous normal, if ever. This may adversely impact the expected implementation of the Company’s plans moving forward.

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, 2021, 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, 2021 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.

The 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

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VISCOUNT MINING CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2022 (Expressed in Canadian Dollars)

judgment in applying the Company’s accounting policies. The areas involving a higher 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, 2022	August 31, 2021
	$	$
Denominated in Canadian dollars	1,299,467	2,417,827
Denominated in US dollars	329,942	153,501
	1,629,409	2,571,328

4. Amounts Receivable and Prepaid Expenses

Amounts receivable and prepaid expenses consist of the following:

	As at	As at
	February 28, 2022 August 31, 2021
	$	$
Goods and Services Tax receivable	66,124	10,815
Prepaids exploration	71,672	43,355
Prepaids insurance and travel expenses	-	43,116
	137,796	97,286

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, 2022 and August 31, 2021 are as follows:

	As at	As at
	November 30, 2021	August 31, 2021
	$	$
Nevada Properties
Acquisition and exploration costs	2,298,885	3,119,590
Recoveries	(922,996)	(1,679,159)
Colorado Properties
Acquisition and exploration costs	4,097,674	3,496,548
Recoveries	(58,560)	(58,560)
	5,415,003	4,878,419

A summary of the changes in the Company’s exploration and evaluation properties for the six-month period ended February 28, 2022 and year ended August 31, 2021 are as follows:

• A. 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. “Centerra” to earn up to a 70% interest in the Cherry Creek Project.

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VISCOUNT MINING CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2022 (Expressed in Canadian Dollars)

Under terms of the Agreement Centerra has the right to acquire a 70% interest in the Property through (a) making annual payments totaling US$250,000 over a 4-year period, and (b) spending US$8,000,000 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 was the project manager for the exploration program, with Centerra providing all funds required to conduct exploration of the project. In addition, as project manager Viscount earns operating fees of 10% on all project expenditures. Effective March 1, 2022, Centerra exercised its option under the Joint Venture Agreement and assumed the role as project manager.

• B. Colorado Properties , described collectively as Silver Cliff, consists of 96 lode claims where high grade silver, gold and base metal production came from numerous mines during the period 1878 to 1894.

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”). All payments to the BLM are current.

• 3) Making payments to the Owner in the aggregate amount of US$3,000,000 plus a cost-ofliving adjustment effective from the anniversary payment. As of August 31, 2021, all amounts under the contract have been paid. Remaining option payments, which require cost of living adjustments to be added, are as follows:

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

• US$100,000 on the eighth anniversary, September 15, 2022;

• US$100,000 on the ninth anniversary, September 15, 2023;

• US$100,000 on the tenth anniversary, September 15, 2024;

• US$150,000 on the eleventh anniversary, September 15, 2025;

• US$200,000 on the twelfth anniversary, September 15, 2026; and

• 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.

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VISCOUNT MINING CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2022 (Expressed in Canadian Dollars)

• 6) The Company agreed to issue Kingsmere Mining Ltd. a finder’s fee of 500,000 shares. As of August 31, 2021, 200,000 shares have been issued. The remaining shares will be issued as follows:

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

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

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

• d. 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 November 30, 2021, US$420,099 has been paid. The remaining option payments are as follows:

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

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

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

• d. US$147,000 on the eighth anniversary, between May 12 and June 5, 2025;

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

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

6.

Related Party Transactions

On February 28, 2022 and August 31, 2021 there are no amounts owed to related parties, who are officers, directors and/or shareholders. Amounts paid are for consulting services and advances on behalf of the Company provide by the related parties or by companies they controlled.

The key management personnel compensation for the six-month period ended February 28, 2022 and year ended August 31, 2021, are summarized as follows:

	Six Months Ended	Six Months Ended
	February 28, 2022	February 28, 2021
	Consulting fees or Salary	Consulting fees or Salary
	$	$
Chief Executive Officer/Director	124,000	127,800
Chief Financial Officer	48,000	37,000
Directors/Manager	64,000	45,000
Director/Chief Geologist	15,510	6,742
Director/Legal fees	22,070	118
	273,580	216,660

During the six months period ended February 28, 2022, $Nil (year ended August 31, 2021 - $6,742) related to consulting fees are capitalized in exploration and evaluation properties.

7. Share Capital

A. Authorized

On February 28, 2022, 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, 2022, the total issued, and outstanding common shares was 86,106,962 common shares with no par value (August 31, 2020 – 84,949,462).

Share capital transactions of the Company during the six-month period ended February 28, 2022 and year ended August 31, 2021 are summarized as follows:

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VISCOUNT MINING CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2022 (Expressed in Canadian Dollars)

• a) During the six months ended February 28, 2022, 1,107,500 shares were issued pursuant to the exercise of 1,107,500, $0.32 warrants for gross proceeds of $370,400.

• b) On September 20, 2021, the Company issued 50,000 common shares valued at $16,000 to Kingsmere Mining Ltd. in accordance with the Finders Fees agreement between the Company and Kingsmere.

• c) During the year ended August 31, 2021, 3,684,000 warrants and options were exercised between $0.22 and $0.35 per share for gross proceeds of $1,232,960. Of this amount, $109,375 remained unpaid and is reflected as subscriptions receivable at August 31, 2021. The warrant reserve was reduced by $27,425 and share capital was increased by the same amount related to recognition of the exercise of certain warrants.

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, 2022 and year ended August 31, 2021:

	February	28, 2022	August 31, 2021	August 31, 2021
	Number of	Weighted	Number of	Weighted
	Warrants	average	Warrants	average
	Outstanding	exercise price	Outstanding	exercise price
		$		$
Outstanding, beginning of period	24,357,020	0.32	29,434,020	0.32
Exercised warrants	(1,107,500)	0.32	(3,567,000)	0.34
Expired warrants	-	0.35	(1,510,000)	0.35
Outstanding,end ofquarter	23,249,520	0.32	24,357,020	0.32

D. Stock Option Plan

The Company’s stock option plan (the “Plan”) 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 year ended August 31, 2021, 117,000 options were exercised at $0.22 for proceeds of $25,740, in addition share capital was increased and the option reserve was reduced by $19,750.

• b) On January 25, 2021, the Company issued 1,000,000 five-year options at an exercise price of $0.375 to officers, directors and consultants. The options were valued at $261,708, using the Black Scholes valuation methodology assuming a risk-free interest rate of 0.42% per annum, an expected life of 5 years, volatility of 79.88%, and no expected dividend.

• c) On March 29, 2021, the Company issued 700,000 five-year options at an exercise price of $0.375 to consultants. The options were valued at $154,458, using the Black Scholes valuation methodology assuming a risk-free interest rate of 0.42% per annum, an expected life of 5 years, volatility of 79.83%, and no expected dividend.

• d) On October 16, 2020, the Company issued 400,000 five-year options at an exercise price $0.40 to consultants. The options were valued at $104,762, using the Black Scholes valuation methodology assuming a risk-free interest rate of 0.32% per annum, an expected life of 5 years, volatility of 105.62%, and no expected dividend.

The following is a summary of the changes in the Company’s stock options six-month period ended February 28, 2022 and for the year ended August 31, 2021:

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VISCOUNT MINING CORP.

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2022

(Expressed in Canadian Dollars)

	February	28, 2022	August	31, 2021
	Number of	Weighted	Number of	Weighted
	Options	average	Options	average
	Outstanding	exerciseprice	Outstanding	exerciseprice
		$		$
Outstanding, beginning of period	7,953,800	0.38	6,500,800	0.30
Cancelled/Expired	(180,000)	0.51	(530,000)	0.57
Exercised	-		(117,000)	-
Granted	-		2,100,000	0.40
Outstanding,end ofquarter	7,773,800	0.37	7,953,800	0.30

The following table summarizes information regarding stock options outstanding and exercisable as at February 28, 2022 and the year ended August 31, 2021:

		February 28, 2022		August 31, 2021
		Number of		Number of
	Exercise	Options	Exercise	Options
Expiry Date	Price	Outstanding	Price	Outstanding
September 8, 2021	$ 0.570	-	$ 0.570	180,000
April 17, 2022	$ 0.360	50,000	$ 0.360	50,000
October 26, 2022	$ 0.200	19,800	$ 0.200	19,800
March 15, 2023	$ 0.320	500,000	$ 0.320	500,000
June 15, 2023	$ 0.300	200,000	$ 0.300	200,000
January 22, 2024	$ 0.220	854,000	$ 0.220	854,000
August 5, 2022	$ 0.400	250,000	$ 0.400	250,000
August 20, 2025	$ 0.400	3,800,000	$ 0.400	3,800,000
October 25, 2025	$ 0.400	400,000	$ 0.400	400,000
January 26, 2026	$ 0.375	1,000,000	$ 0.375	1,000,000
March 29, 2026	$ 0.375	700,000	$ 0.375	700,000
Outstandingand exercisable options	$0.366	7,773,800	$0.371	7,953,800

8. Supplemental Cash Flow Information

• During the six months ended February 28, 2022, 50,000 common shares valued at $16,000 were issued for exploration and evaluation properties. During the year ended August 31, 2021, 50,000 common shares valued at $21,000 issued for exploration and evaluation properties.

• During the six months ended February 28, 2022, subscriptions receivable remained unchanged at $185,875. During the year ended August 31, 2021, an additional $109,375 (August 31, 2020 - $76,500) was added to share subscriptions receivable for a total of $185,875.

• During the year ended August 31, 2021, the Company recorded a fair value reversal on the exercise of warrants in the amount of $27,425.

• During the year ended August 31, 2021, the Company transferred $242,742 from warrant reserves into deficit for warrants that had expired in previous years.

• During the year ended August 31, 2021, the Company recorded a fair value reversal on the exercise of stock options in the amount of $19,750.

• During the year ended August 31, 2021, the Company recorded a fair value reversal on the expiry of stock options in the amount of $296,214.

• During the year ended August 31, 2021, the Company transferred $715,866 from option reserves into

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VISCOUNT MINING CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2022 (Expressed in Canadian Dollars)

deficit for stock options that had expired in previous years.

• Included in trade payables and accrued liabilities on February 28, 2022, and August 31, 2021, was nil incurred on exploration and evaluation expenditures.

9.

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).

10.

Capital Management

The Company’s policy is to maintain a strong capital base 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 adjusts 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.

11. Financial Instruments and Risk Management

Fair values

The Company’s financial instruments are cash, accounts receivable, trade payables, 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 approximate 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, 2021, audited consolidated financial statements.

Segmented Information

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

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VISCOUNT MINING CORP. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS February 28, 2022 (Expressed in Canadian Dollars)

The breakdown of geographic area for the six months period ended February 28, 2022, and the year ended August 31, 2021 is as follows:

Quarter ended February 28, 2022	Canada	USA	Total
	$	$	$
Net loss	(730,647)	-	(730,647)
Current assets	2,004,639	-	2,004,639
Reclamation bond	-	30,005	30,005
Exploration and evaluationproperties	-	5,415,003	5,415,003
Total assets	2,004,639	5,445,008	7,449,647
Year ended August 31, 2021	Canada	USA	Total
	$	$	$
Net loss	1,732,307	-	1,732,307
Current assets	2,860,844	-	2,860,844
Reclamation bond	-	26,172	26,172
Exploration and evaluationproperties	-	4,878,419	4,878,419
Total assets	2,860,844	4,904,591	7,765,435

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