Azarga Uranium : Condensed Consolidated Interim Financials for the Three Months Ended June 30, 2021

Azarga Uranium Corp.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

June 30, 2021

(Unaudited - Expressed in U.S. Dollars)

Notice to Reader

These condensed consolidated interim financial statements of Azarga Uranium Corp. have been prepared by management and approved by the Audit Committee of the Board of Directors of the Company. In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that its external auditors have not reviewed these condensed consolidated interim financial statements, notes to the financial statements or the related quarterly Management's Discussion and Analysis.

TABLE OF CONTENTS

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS	4
Condensed Consolidated Interim Statements of Financial Position
Condensed Consolidated Interim Statements of Income (Loss) and Other Comprehensive Income (Loss)	Page
5
Condensed Consolidated Interim Statements of Changes in Equity	6
Condensed Consolidated Interim Statements of Cash Flows	7
1.	Corporate information and going concern	8
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS	9
2.	Basis of presentation
3.	Summary of significant accounting policies	10
4.	Segmented information	10
5.	Exploration and evaluation assets	11
6.	Loan payable	11
7.	Warrant liabilities	12
8.	Equity	12
9.	Share option reserve	15
10.	Administrative expenses	16
11.	Related party transactions and balances	17
12.	Financial instruments and risk management	18
13.	Commitments	20
14.	Supplemental cash flow information	21
15.	Subsequent events	21

AZARGA URANIUM CORP.

Condensed Consolidated Interim Statements of Financial Position

(Unaudited - Expressed in U.S. Dollars)

				As at
				June 30,		December 31,
		Notes		2021		2020
ASSETS			$	1,526,218	$	2,400,060
Cash
urrent assets				94,622		59,499
Other assets
Total current assets				1,620,840		2,459,559
Restricted cash				720,020		952,472
Non-current assets	5		43,177,298		42,621,402
Exploration and evaluation assets
Property, plant and equipment				64,104		65,261
Right-of-use assets				59,795		74,145
Total assets			$	44,021,217	$	43,713,280
Total non-current assets
LIABILITIES AND EQUITY			$	427,282	$	525,904
Trade and other payables
Current liabilities	6		-		101,284
Loan payable
Lease obligations				15,661		15,661
Total current liabilities				442,943		642,849
Trade and other payables				25,000		55,000
Non-current liabilities				3,277,193		3,277,193
Deferred income tax liabilities
Decommissioning liabilities				267,807		267,807
Lease obligations	7		49,277		63,548
Warrant liabilities		1,703,168		1,960,499
Total liabilities				5,322,445		5,624,047
Total non-current liabilities				5,765,388		6,266,896
Common shares	8		65,505,581		64,899,866
Equity	8		1,119,053		1,127,178
Contributed surplus
Share option reserve	9		2,998,384		3,008,477
Accumulated deficit				(29,746,349)		(29,129,578)
Total liabilities nd equity	1	$	39,876,669	$	39,905,943
Corporate information and going concern	45,642,057	46,172,839
Total equity
Subsequent events	15
Approved by the Board of Directors of the Company:
"Joseph L. Havlin", Director		"Matthew O'Kane", Director

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

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AZARGA URANIUM CORP.

Condensed Consolidated Interim Statements of Income (Loss) and Other Comprehensive Income (Loss)

(Unaudited - Expressed in U.S. Dollars)

		Three months ended June 30,		Six months ended June 30,
	Notes		2021		2020		2021		2020
Administrative expenses	10	$	(604,397)	$	(453,714)	$	(967,341)	$	(808,862)
Foreign exchange (loss) gain			(46,818)		(1,288)		(58,920)		14,263
Finance costs			(651,215)		(455,002)		(1,026,261)		(794,599)
		(1,259)		(9,273)		(2,874)		(15,876)
Loss from operations	6		101,532		-		101,532		-
Gain on forgiveness of loan
Realized gain on warrant liabilities	7		25,854		-		25,854		-
Unrealized gain on warrant liabilities	7		645,964		3,537		284,978		142,819
		$	120,876	$	(460,738)	$	(616,771)	$	(667,656)
Net income (loss) and other comprehensive
income (loss)
Basic and diluted income (loss) per share		$	0.00	$	(0.00)	$	(0.00)	$	(0.00)
Weighted average number of common shares			233,164,353		195,313,925		232,649,551		190,683,534

outstanding

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

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