Amarc Resources : FY23 Annual Financial Report

AMARC RESOURCES LTD.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED

MARCH 31, 2023, 2022, and 2021

(Expressed in Canadian Dollars)

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Amarc Resources Ltd.,

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of Amarc Resources Ltd. ('the Company'), which comprise the consolidated statements of financial position as at March 31, 2023 and 2022 and the consolidated statements of (income) loss, comprehensive income (loss), changes in (deficiency) equity and cash flows for each of the years in the three year period ended March 31, 2023, and a summary of significant accounting policies and other explanatory information (collectively referred to as the 'consolidated financial statements'). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as at March 31, 2023 and 2022 and its financial performance and its cash flows for each of the years in the three year period ended March 31, 2023, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Without modifying our opinion, we draw attention to Note 1 in the consolidated financial statements which indicates that the Company has no current source of revenue, has incurred losses from inception and is dependent upon its ability to secure new sources of financing. These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that casts significant doubt as to the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

This issue also constitutes, from our perspective, a critical audit matter that was communicated to the audit committee and that: (i) relates to accounts or disclosures that are material to the consolidated financial statements; and (ii) involved, on our part, especially challenging, subjective, or complex judgements. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating this critical audit matter, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

The principal considerations for our determination that the going concern uncertainty was a critical audit matter were: (i) that the formal reporting of such uncertainty involves a significant disclosure, the absence of which could constitute a material misstatement to a financial statement reader and, (ii) that, at the same time, it involves on our part the use of a high level of subjective judgement as we are required to consider the possible impact of future events that cannot currently be known and which in all likelihood will not be directly linked to any particular current or future financial results and reporting, or the lack thereof.

Addressing this matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures also included, among others, (i) obtaining and evaluating management's assessment of the Company's ability to remain a going concern; (ii) determining based on all other evidence available to us whether management's assessment appeared to be fair and reasonable in the circumstances and, (iii) considering whether the resultant disclosure of these matters herein was consistent with the foregoing, in the context of the Company's overall business activities, objectives and financial history.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ('PCAOB') and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free of material misstatement, whether due to fraud or error. The Company is not required to have, nor were we engaged to perform, an audit of internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

A critical audit matter was communicated above under 'Going Concern'.

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, Canada

July 25, 2023

We have served as the Company's auditor since 1995.

Amarc Resources Ltd.

Consolidated Statements of Financial Position

(Expressed in Canadian Dollars)

		March 31,	March 31,
		2023	2022
	Note	($)	($)
ASSETS
Current assets	3	5,131,510	370,784
Cash
Amounts receivable and other assets	6	218,351	48,817
Marketable securities	4	139,284	311,293
Non-curr nt sets	5	5,489,145	730,894
Restricted cash	539,834	178,550
Right-of-use asset	13	62,208	82,384
Total assets		6,091,187	991,828
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	8	1,180,863	413,278
Accounts payable and accrued liabilities
Advanced contributions received	7	4,124,349	-
Balances due to related parties	11	530,512	472,303
Lease liability	13	20,696	17,125
		5,856,420	902,706
Non-current liabilities	9	648,005	644,642
Director's loan
Lease liability	13	52,207	72,903
Total liabilities
		6,556,632	1,620,251
Shareholders' deficiency	10	65,228,921	65,228,921
Share capital
Reserves	10	4,289,896	4,094,335
Accumulated deficit		(69,984,262)	(69,951,679)
		(465,445)	(628,423)
Total liabilities and shareholders' deficiency		6,091,187	991,828

Nature of operations and going concern (note 1)

Events after the reporting period (note 16)

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

/s/ Robert A. Dickinson	/s/ Scott D. Cousens
Robert A. Dickinson	Scott D. Cousens
Director	Director

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Amarc Resources Ltd.

Consolidated Statements of (Income) Loss

(Expressed in Canadian Dollars, except for weighted average number of common shares)

				Years ended March 31,
	Note	2023	2022			2021
		($)	($)			($)
enses	7	14,752,416	5,386,333			1,395,645
Exploration and evaluation
Assays and analysis			873,408			310,769			152,093
Drilling			4,814,692			980,248			146,886
Environmental			60,957			13,975			-
Equipment rental			623,236			-			1,769
Freight			454,102			79,043			-
Geological, including geophysical			1,751,825			1,074,970			475,380
Graphics			5,846			99,552			-
Helicopter and fuel			2,035,711			910,699			208,347
Property acquisition and assessments costs			141,538			56,699			55,436
Site activities			3,176,489			1,077,369			182,238
Socioeconomic			525,645			274,109			99,527
Technical data			80,005			393,561			63,206
Travel and accommodation			208,962			115,339			10,763
Administration			818,856			616,970			629,974
Legal, accounting and audit	12(b)		36,854			96,897			45,828
Office and administration		308,828			324,117			416,924
Rent			26,745			14,944			-
Shareholder communication			345,484			140,036			123,925
Travel and accommodation			63,233			9,758			10,763
Trust and regulatory			37,712			31,218			32,534
Equity-settledshare-based compensation			264,260			123,578			17,888
Property option proceeds	7	(14,773,794)	(5,539,024)			(1,350,891)
Cost recoveries	7(d)		-			-	(260,115)
Gain on sale of mineral property
	7(d)		-			-	(1,934,500)
Other items		1,061,738	587,857			(1,501,999)
Finance income	9	(123,727)	(18,694)			(26,904)
Interest expense - director's loans	126,685	100,000			111,354
Other interest and finance charges		285			-	-
Accretion expense - office lease		9,620	10,438			-
Interest income	7	(15,101)			-	-
Other fee income	(1,154,570)	(409,486)			-
Amortization of right-of-use asset	9	20,176	18,493			-
Transaction cost - director's loans	102,554	74,642			57,881
Loss on sales of marketable securities	4	2,429			-	-
Foreign exchange loss		2,494	562			(1,031)
Other comprehensive (income) loss		32,583	363,812			(1,360,699)
Net (income) loss
Items that will not be reclassified subsequ ntly to loss:		167,890	715,125			626,438
Change in value of marketable securities
Total other comprehensive (income) loss		200,473	1,078,937			(734,261)
Basic and diluted (income) loss per share		0.00	0.00			(0.01)
Weighted average number of common		186,602,894	181,479,873			178,666,081
shares outstanding

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

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