Argo Gold : Q3 September 30, 2023 Financial Statements

Condensed Interim Financial Statements

For the three and nine months ended September 30, 2023

and 2022 (Expressed in Canadian Dollars)

(Unaudited)

INDEX	Page
Management's Responsibilities for Financial Statements	1
Condensed Interim Statements of Financial Position	2
Condensed Interim Statements of Loss and Comprehensive Loss	3
Condensed Interim Statements of Changes in Shareholders' Equity	4
Condensed Interim Statements of Cash Flows	5
Notes to the Condensed Interim Financial Statements	6-27

Management's Responsibility for Financial Statements

The accompanying condensed interim financial statements of Argo Gold Inc. (the "Company" or "Argo Gold") are the responsibility of management and the Board of Directors. These condensed interim financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with the accounting policies disclosed in the notes to the condensed interim financial statements. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the statement of financial position date. In the opinion of management, the condensed interim financial statements have been prepared within acceptable limits of materiality and are in accordance with International Financial Reporting Standards ("IFRS") appropriate in the circumstances.

Management has established processes, which are in place to provide it sufficient knowledge to support management representations that it has exercised reasonable diligence that the (i) condensed interim financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of, and for the periods presented by, the condensed interim financial statements and (ii) the condensed interim financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods presented by the condensed interim financial statements.

The Board of Directors is responsible for reviewing and approving the condensed interim financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the condensed interim financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the condensed interim financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

(signed) "Judy Baker"

Judy Baker

Chief Executive Officer

and Interim Chief Financial Officer

Toronto, Canada

November 28, 2023

Notice to Reader

The accompanying condensed interim financial statements of the Company have been prepared by and are the responsibility of the Company's management. The condensed interim financial statements have been prepared using accounting policies in compliance with International Financial Reporting Stands for the preparation of the condensed interim financial statements and are in accordance with IAS 34 - Interim Financial Reporting.

The Company's independent auditor has not performed a review of these unaudited condensed interim financial statements in accordance with standards established by the Canadian Chartered Professional Accountants for a review of interim financial statements by an entity's auditor.

The accompanying condensed interim financial statements of the Company have been prepared by and are the responsibility of management. The condensed interim financial statements as at and for the three months ended June 30, 2023 have not been reviewed by the Company's auditor.

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Condensed Interim Statements of Financial Position As At

			(Unaudited)		(Audited)
		September 30,		December 31,
(Expressed in Canadian Dollars)	Notes		2023		2022
Assets
Current assets
Cash		$	35,181	$	7,104
HST receivable			12,044		32,596
Accoounts receivable			198,847		-
Prepaid expenses			11,035		36,540
Investments	4		-		78,270
Total current assets			257,107		154,510
Non-current assets
Mineral properties	6		932,750		932,750
Oil and gas property	7		1,192,013		-
Equipment	8		2,141		4,904
Total Assets		$	2,384,011	$	1,092,164
Liabililties and Equity
Current liabilities
Accounts payable and accrued liabilities	4	$	315,425	$	478,434
Loan	11		1,065,296		-
Total Current Liabilities			1,380,720		478,434
Long-Term Liabilities
Asset retirement obligation	7		17,948		-
Total Liabilities			1,398,668		478,434
Shareholders' Equity
Share capital	9(a)(b)		15,483,812		14,946,412
Warrant reserve	9(c)		-		438,100
Deficit			(14,498,469)		(14,770,782)
Total Shareholders' Equity			985,344		613,730
Total Liabilities and Shareholders' Equity		$	2,384,012	$	1,092,164
Nature of operations and going concern	Note 1		1
Commitments and contingencies	Note 12
Approved by the Board of Directors and authorized on November 28, 2023
"Judy Baker"				"George Langdon"
Judy Baker				George Langdon
Director				Director

The accompanying notes form an integral part of these financial statements

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Condensed Interim Statements of Loss and Comprehensive Loss For the periods ended

(Unaudited)

			Three months ended		Nine months ended
			September 30,		September 30,
(Expressed in Canadian Dollars)	Notes		2023		2022		2023		2022
Revenue	7	$	286,563	$	-	$	520,887	$	-
Expenses
Oil and gas expenses	7		150,538		-		295,531		-
Exploration and evaluation	6,10		17,042		116,347		55,587		199,534
Management fees	10		15,000		20,275		45,000		92,650
Consulting fees			-		6,751		(33,183)		45,496
Professional fees			47,465		54,906		97,980		86,500
Business development			10,308		(21,228)		20,971		144,819
Investor relations			14,226		47,178		46,632		82,078
General and administrative			7,046		28,946		53,459		76,044
Listing filing and regulatory fees			10,660		25,621		34,584		48,859
Depreciation	7,8		921		1,005		2,763		2,481
Total Expenses			273,205		279,801		619,326		778,461
Profit (loss) before the undernoted			13,358		(279,801)		(98,438)		(778,461)
Bank charges			(208)		(364)		(840)		(539)
Part X11.6 taxes			-		-		-		0
Interest (expense) income			(20,094)		7		(47,878)		13
Realized (loss) gain on sale of investments	4		-		-		(18,630)		-
Change in unrealzed (loss) on value of investments			-		(1,250)		-		(227,500)
Flow-through share premium recovery	12		-		(106,140)		-		(106,048)
Net profit (loss) and comprehensive loss for the period			($6,944)		(387,548)		($165,787)		(1,112,930)
Basic and diluted loss per share		-	0.00		($0.01)		(0.00)		(0.02)
Weighted average number of shares outstanding - basic and diluted		71,535,581		63,068,881		71,535,581		63,068,881

The accompanying notes form an integral part of these financial statements

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Condensed Interim Statements of Changes in Shreholders' Equity For the periods ended

(Unaudited)

		Share Capital			Reserves
		Number of						Stock
(Expressed in Canadian Dollars)	Note	Shares		Amount			Warrants	Options		Deficit		Total
Balance at December 31, 2021		65,985,581		14,946,412			1,006,229		-	(13,891,694)		2,060,947
Warrants - expired - December 22, 2022	9(c)(d)	-		-			(568,129)		-	568,129		-
Net loss for the year		-		-			-		-	(1,447,217)		(1,447,217)
Balance at December 31, 2022		65,985,581	$	14,946,412	$	438,100	$	-	(14,770,782)	$	613,730
Warrants - expired - February 5, 2023	9(c)(d)	-		-			(438,100)		-	438,100		-
Shares issued for cash - May 1, 2023		3,650,000		365,000			-		-	-		365,000
Share issue costs - May 1, 2023		-		(17,600)			-		-	-		(17,600)
Shares subscribed not issued		1,900,000		190,000			-		-	-		190,000
Net loss for the period		-		-			-		-	(165,787)		(165,787)
Balance at September 30, 2023		71,535,581	$	15,483,812	$	-	$	-	($14,498,469)	$	985,344

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Condensed Interim Statements of Cash Flows For the years period

(Unaudited)

	September 30		September 30
(Expressed in Canadian Dollars)	Notes	2023			2022
Cash flows from operating activities
Net loss for the year		($165,787)			($1,112,930)
Adjustments not affecting cash:
Flow-through share premium recovery	12	-			(43,750)
Loss (gain) on sale of investment	4	18,630			-
Depreciation expense - oil and gas included	7,8	208,921			2,481
Asset retirement obligation		17,948			-
Change in unrealized loss on value
of investments	4	-			227,500
Operating cash flows before changes in		79,712			(926,699)
non-cash working capital
Changes in non-cash working capital
HST receivable		20,552			2,112
Short term loan	11	1,065,296			-
Accounts receivable		(198,847)			-
Prepaid expenses		25,504			(6,584)
Accounts payable and accrued liabilities		(163,009)			137,543
Flow-through share obligation		-			149,798
Cash (used in) operating activities		829,208			(643,830)
Cash flows from investing activities
Sale of investments	4	59,640			-
Property, plant and equipment additions	7	(1,398,171)	-		6,342
Cash (used in) from investing activities		(1,338,531)	-		6,342
Cash flows from financing activities
Cash from subscriptions	9	537,400			-
Cash from financing activities		537,400			-
Decrease in cash during the period		28,077			(650,172)
Cash, beginning of period		7,104			821,690
Cash, end of period	$	35,181		$	171,518

The accompanying notes form an integral part of these financial statements

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Notes to the Condensed Interim Financial Statements For the three months ended September 30, 2023 and 2022 (Expressed in Canadian Dollars)

(Unaudited)

1. NATURE OF OPERATIONS AND GOING CONCERN

Argo Gold (the "Company" or "Argo Gold") was incorporated under the laws of Ontario on December 9, 1995. The Company is listed on the Canadian Stock Exchange ("CSE"), having the symbol ARQ and on the OTC under the symbol ARBTF. The Company is currently engaged in the acquisition, exploration, and development of mineral properties, and is currently acquiring potential oil and gas assets for exploration and production. The address of the Company's corporate office and principal place of business is 25 Adelaide Street East, Suite 1400 Toronto, Ontario, M5C 3A1, Canada.

These financial statements have been prepared on a going concern basis, which contemplates that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern, and therefore be required to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying financial statements. Such adjustments could be material. It is not possible to predict whether the Company will be able to raise adequate financing or to ultimately attain profitable levels of operations. Changes in future conditions could require material write downs of the carrying values.

The business of exploring for minerals and oil and gas involves a high degree of risk and there can be no assurance that the exploration programs will result in profitable operations. The Company is in the process of exploring o i l a n d g a s o p p o r t u n i t i e s a n d its mineral and properties and has not yet determined whether these properties contain mineral reserves that are economically recoverable. The recoverability of amounts shown for mineral properties, and the new acquired oil and gas property is dependent upon the establishment of a sufficient quantity of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development and upon future profitable production or proceeds from the disposition of these assets.

Although the Company has taken steps to verify title to the properties on which it is conducting exploration and in which it has an interest, in accordance with industry standards for the current stage of operations of such properties, these procedures do not guarantee the Company's title. Property title may be subject to government licensing requirements or regulations, unregistered prior agreements, unregistered claims, indigenous claims, and non-compliance with regulatory, environmental, and social licensing requirements. The Company's assets may also be subject to increases in taxes and royalties, renegotiation of contracts, political uncertainty and currency exchange fluctuations and restrictions.

The Company has not realized a profit from operations and has incurred significant expenditures related to property exploration, resulting in a cumulative deficit of $14,498,469 as at September 30, 2023 (December 31, 2022 - $14,770,782). The recoverability of the carrying value of mineral properties, oil wells and the Company's continued existence is dependent upon the preservation of its interest in the underlying properties, the discovery of economically recoverable reserves, the achievement of profitable operations, or the ability of the Company to raise alternative financing, if necessary, or alternatively upon the Company's ability to dispose of its property interests on an advantageous basis. While management has been historically successful in raising the necessary capital, it cannot provide assurance that it will be successful in future financing activities or be able to execute its business strategy.

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Notes to the Condensed Interim Financial Statements For the three months ended September 30, 2023 and 2022 (Expressed in Canadian Dollars)

(Unaudited)

1. NATURE OF OPERATIONS AND GOING CONCERN (Continued)

As at September 30, 2023, the Company had current assets of $257,107 (December 31, 2022 -

$154,510) to cover current liabilities of $1,380,720 (December 31, 2022 - $478,434). These conditions indicate the existence of material uncertainties that cast significant doubt about the Company's ability to continue as a going concern.

2. BASIS OF PRESENTATION

1. Statement of Compliance

These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and include interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). The policies set out were consistently applied to all periods presented unless otherwise noted below.

1. Basis of Presentation

These financial statements have been prepared on the historical cost basis, except for financial instruments designated at fair value through profit and loss, which are stated at their fair value. In addition, these financial statements have been prepared using the accrual basis of accounting except for cash flow information. These financial statements are presented in Canadian dollars, which is the Company's functional currency. All values are rounded to the nearest dollar.

1. Approval of the Financial Statements

The financial statements of the Company for the nine months September 30, 2023 and September 30, 2022 were reviewed, approved, and authorized for issue by the Board of Directors of the Company on November 28, 2023.

1. Use of Estimates and Judgement

The preparation of financial statements in conformity with IFRS requires that management make judgements, estimates and assumptions about future events that affect the amounts reported in the financial statements and related notes to the financial statements. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The Company makes estimates and assumptions about the future that affect the reported amounts of assets and liabilities, profits and expenses. Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income in the period of the change, if the change affects that period only, or in the period of the change and future periods, if the change affects both.

Information about critical judgments in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the financial statements are discussed below.

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Notes to the Condensed Interim Financial Statements For the three months ended September 30, 2023 and 2022 (Expressed in Canadian Dollars)

(Unaudited)

2. BASIS OF PRESENTATION (Continued)

Share-based payment transactions

The Company measures the cost of equity-settled transactions with employees and applicable non- employees by reference to the fair value of the equity instruments at the date at which they are vested. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the share option, risk-free interest rates, volatility and dividend yield and making assumptions about them.

Title to exploration and evaluation property interests

Although the Company has taken steps to verify title to exploration and evaluation properties in which it has an interest, these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

Rehabilitation provisions

The Company records management's best estimate of the present value of the future cash requirements of any rehabilitation obligation as a long-term liability in the period in which the related environmental disturbance occurs based on the net present value of the estimated future costs. This obligation is adjusted at each period end to reflect the passage of time and any changes in the estimated future costs underlying the obligation. In determining this obligation, management must make a number of assumptions about the amount and timing of future cash flows and discount rate to be used. The actual future expenditures may differ from the amounts currently provided if the estimates made are significantly different than actual results or if there are significant changes in environmental and/or regulatory requirements in the future.

Income, value added, withholding and other taxes

The Company is subject to income, value added, withholding and other taxes. Significant judgment is required in determining the Company's provisions for taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. The determination of the Company's income, value added, withholding and other tax liabilities requires interpretation of complex laws and regulations. The Company's interpretation of taxation law as applied to transactions and activities may not coincide with the interpretation of the tax authorities. All tax related filings are subject to government audit and potential reassessment subsequent to the financial statement reporting period. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the tax related accruals and deferred income tax provisions in the period in which such determination is made.

Capitalization of property acquisition costs

Where mineral properties are acquired through an acquisition agreement, management has determined that capitalized acquisition costs have future economic benefits and are economically recoverable. In making this judgement, management has assessed various sources of information including, but not limited to, the geologic and metallurgic information, operating management expertise and existing permits. See Note 6 for details of the Company's capitalized acquisition costs in respect of mineral properties.

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Notes to the Condensed Interim Financial Statements For the three months ended September 30, 2023 and 2022 (Expressed in Canadian Dollars)

(Unaudited)

Exploration and Evaluation assets

Exploration and evaluation ("E&E") assets consist of the Company's crude oil and natural gas exploration projects that are pending the determination of proved reserves. E&E costs are initially capitalized and include costs directly associated with the acquisition of licenses, technical services and studies, seismic acquisition, exploration drilling and evaluation, overhead and administration expenses, and the estimate of any asset retirement costs. E&E costs do not include general prospecting or evaluation costs incurred prior to having obtained the legal rights to explore an area. These costs are recognized in net earnings. Once the technical feasibility and commercial viability of E&E assets are determined and a development decision is made by management, the E&E assets are tested for impairment upon reclassification to property, plant and equipment. The technical feasibility and commercial viability of extracting a mineral resource is considered to be determined when an assessment of proved reserves is made. An E&E asset is derecognized upon disposal or when no future economic benefits are expected to arise from its use. Any gain or loss arising on derecognition of the asset is recognized in net earnings within depletion, depreciation, and amortization. E&E assets are also tested for impairment when facts and circumstances suggest that the carrying amount of E&E assets may exceed their recoverable amount.

Impairment of properties

While assessing whether any indications of impairment exist for mineral properties, consideration is given to both external and internal sources of information. Information the Company considers includes changes in the market, economic and legal environment in which the Company operates that are not within its control that could affect the recoverable amount of mineral properties. Internal sources of information include the manner in which the mineral properties are being used or are expected to be used and indications of expected economic performance of the properties. Estimates include but are not limited to estimates of the discounted future cash flows expected to be derived from the Company's mining properties, costs to sell the properties and the appropriate discount rate. Reductions in metal price forecasts, increases in estimated future costs of production, increases in estimated future capital costs, reductions in the amount of recoverable mineral reserves and mineral resources and/or adverse current economics can result in a write-down of the carrying amounts of the Company's mineral properties.

Significant Accounting Policies

The accounting policies set out below have been applied consistently to all period presented in these financial statements except where noted.

(a) Cash

Cash consists of cash on deposit with a major Canadian bank.

(b) Exploration and Evaluation of Mineral Properties Acquisition Costs

The costs of acquiring mineral property interests comprised of payments of cash and common shares, are capitalized as mineral property assets. This does not include payments of cash and common shares in respect of option agreements where the ultimate acquisition of the property is uncertain at the time the initial payment is made.

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