BEYD MINENPV : 2023 Q4 Financial Statements

BEYOND LITHIUM INC.

(FORMERLY "BEYOND MINERALS INC.")

ANNUAL AUDITED FINANCIAL STATEMENTS

YEARS ENDED

DECEMBER 31, 2023 AND 2022

(EXPRESSED IN CANADIAN DOLLARS)

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of

Beyond Lithium Inc. (Formerly "Beyond Minerals Inc.")

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Beyond Lithium Inc. (the Company), which comprise the statements of financial position as at December 31, 2023 and 2022, and the statements of loss and comprehensive loss, statements of changes in equity and statements of cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2023 and 2022, and its financial performance and its cash flows for years then ended, in accordance with International Financial Reporting Standards.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Relating to Going Concern

We draw your attention to Note 1 in the financial statements, which indicates the Company incurred a comprehensive loss of $5,837,121 for the year ended December 31, 2023. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements for the year ended December 31, 2023. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

In addition to the matter described in the Emphasis of Matter - Material Uncertainty Related to Going Concern section of our report, we have determined the matter described below to be the key audit matter to be communicated in our report.

Valuation and Classification of Stock Appreciation Rights (SARs)

Description of the matter

As described in Note 12, during the year ended December 31, 2023, the Company issued 1,450,000 SARs to certain officers and consultants of the Company. In accordance with IFRS 2, Share-basedPayment, management determined the SARs were equity-settledshare-based payments, and accordingly classified as equity with no remeasurement of the grant-date fair value.

The fair value of the SARs was measured using the Black-Scholes option pricing model, considering the terms and conditions upon which the SARs were issued.

Why the matter is a key audit matter

This matter represented an area of significant risk of material misstatement given the magnitude of the SARs fair value and the significant management judgment involved in assessing the valuation and classification of SARs issued. Further, the involvement of those with specialized skills and knowledge were required in evaluating the results of our audit procedures.

How the matter was addressed in the audit

The following were the primary procedures we performed to address this key audit matter:

• We read the underlying agreements and evaluated whether management's interpretation of the agreements in relation to accounting for the SARs was reasonable, markedly observing the SARs were equity-settled instruments, which supports equity classification;
• We validated the underlying data used in the valuation and tested the mathematical accuracy;
• Involved in-house (Clearhouse) CBV to evaluate management assumptions and estimates used in black-scholes valuation model; notably volatility, risk-free rate, expected life and stock price; and;
• Assessed the appropriateness and completeness of the related disclosures in the financial statements.

Information Other than the Financial Statements and Auditor's Report Thereon

Management is responsible for the other information. The other information comprises the annual management's discussion and analysis, but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of

users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because of the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Pat Kenney.

Chartered Professional Accountants

Licensed Public Accountants

Mississauga, Ontario

April 25, 2024

Beyond Lithium Inc. (Formerly "Beyond Minerals Inc.")

Statements of Loss and Comprehensive Loss

(Expressed in Canadian Dollars)

		Year Ended
		December 31,
		2023		2022
Operating expenses	$	3,981,596
Exploration and evaluation expenditures (note 6)	$	173,829
General and administrative expenses (note 7)		2,242,569		265,897
Loss for the year	$	(6,224,165)	$	(439,726)
Flow-through share liability recovery (note 8)		387,044		-
Net and comprehensive loss for the year	$	(5,837,121)	$	(439,726)
Net loss per share - basic and diluted (note 14)	$	(0.22)	$	(0.03)
Weighted average number of common shares
outstanding - basic and diluted (note 14)		26,857,393		14,546,689

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

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Beyond Lithium Inc. (Formerly "Beyond Minerals Inc.")

Statements of Cash Flows

(Expressed in Canadian Dollars)

		Year Ended
		December 31,
		2023		2022
Operating activities	$	(5,837,121)
Net loss for the year	$	(439,726)
Items not affecting cash:		(387,044)
Flow-through share liability recovery (note 8)			-
Shares issued for mineral properties (notes 8 & 9)		1,798,166		-
Share-based compensation		960,730		13,174
Changes in non-cash working capital items:		(265,420)
Prepaid expenses			18,801
Sales tax recoverable		(34,909)		(15,172)
Accounts payable and accrued liabilities		181,031		(7,367)
Net cash used in operating activities		(3,584,567)		(430,290)
Financing activities		-
Initial public offering			450,000
Private placement		3,403,300		-
Share issue costs		(236,679)		(135,004)
Stock options exercised		49,150		-
Warrants exercised		93,865		-
Net cash provided by financing activities		3,309,636		314,996
Net change in cash		(274,931)		(115,294)
Cash, beginning of year		351,219		466,513
Cash, end of year	$	76,288	$	351,219
Non-cash items not included in cash flows:	$	-
Shares issued for share issue costs	$	12,500
Warrants issued for share issue costs	$	63,143	$	17,933

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

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Beyond Lithium Inc. (Formerly "Beyond Minerals Inc.")

Statements of Changes in Shareholders' Equity

(Expressed in Canadian Dollars)

	Number of		Share	Contributed
	Shares		Capital		Surplus		Deficit		Total
Balance, December 31, 2021	12,325,000	$	716,991	$	60,750	$	(289,745)	$	487,996
Shares issued in intial public offering (note 9)	3,000,000		450,000		-		-		450,000
Shares issued for service (corporate finance fee) (note 9)	83,333		12,500		-		-		12,500
Warrants issued in initial public offering as share issuance costs (note 11)	-		-		17,933		-		17,933
Share issue costs	-		(164,479)		-		-		(164,479)
Share-based compensation (note 10)	-		-		13,174		-		13,174
Net loss for the year	-		-		-		(439,726)		(439,726)
Balance, December 31, 2022	15,408,333	$	1,015,012	$	91,857	$	(729,471)	$	377,398
Shares issued to acquire mineral properties (notes 6 & 9)	6,106,518		1,798,166		-		-		1,798,166
Shares issued in private placements (note 9)	8,039,600		2,467,800		-		-		2,467,800
Units issued in private placements (note 9)	3,118,333		716,661		218,839		-		935,500
Warrants issued in private placements as share issuance costs (note 11)	-		-		63,143		-		63,143
Share issue costs	-		(299,822)		-		-		(299,822)
Flow-through share premium (note 8)	-		(387,044)		-		-		(387,044)
Stock options exercised (note 9)	220,000		72,055		(22,905)		-		49,150
Warrants exercised (note 9)	807,948		110,908		(17,043)		-		93,865
RSUs converted (note 9)	223,750		73,838		(73,838)		-		-
Share-based compensation (notes 10, 12 & 13)	-		-		960,730		-		960,730
Net loss for the year	-		-		-		(5,837,121)		(5,837,121)
Balance, December 31, 2023	33,924,482	$	5,567,574	$	1,220,783	$	(6,566,592)	$	221,765

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

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Beyond Lithium Inc. (Formerly "Beyond Minerals Inc.")

Notes to Financial Statements

Years Ended December 31, 2023 and 2022 (Expressed in Canadian Dollars)

1. NATURE OF OPERATIONS AND GOING CONCERN

Beyond Lithium Inc. (formerly "Beyond Minerals Inc.") (the "Company") was incorporated on October 8, 2019, under the laws of Canada. The Company is primarily engaged in the business of acquiring and exploring mineral properties.

The head office, principal address, and records office of the Company are located at 360 Main Street, Suite 3000, Winnipeg, Manitoba, R3C 4G1.

The common shares of the Company commenced trading on the Canadian Securities Exchange ("CSE") on April 13, 2022 under the symbol "BY" and on the OTCQB Venture Market on September 9, 2022 under the symbol "BYDMF".

On May 15, 2023, the Company changed its name from "Beyond Minerals Inc." to "Beyond Lithium Inc."

Going Concern

In order to carry out future exploration activities, the Company will need to raise additional financing. Although the Company has been successful in raising funds to date, there can be no assurance that adequate funding will be available in the future, or available under terms favorable to the Company.

These financial statements have been prepared on a going concern basis, which assumes continuity of operations and realization of assets and settlement of liabilities in the normal course of business. However, the Company is exploration-focused and is subject to the risks and challenges of companies in the same sector. These risks include, but are not limited to, the challenges of securing adequate capital given exploration, development and operational risks inherent in the mining industry as well as global economic, precious and base metal price volatility; all of which are uncertain under current market conditions. As a result of these risks, there is no assurance that the Company's funding initiatives will continue to be successful and these financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and financial position classifications that would be necessary were the going concern assumption inappropriate. These adjustments could be material.

The Company has incurred losses in previous years, with net loss of $5,837,121 for the year ended December 31, 2023 (year ended December 31, 2022 - $439,726) and has an accumulated deficit of $6,566,592 as at December 31, 2023 (December 31, 2022 - $729,471). The continuing operations of the Company are dependent on its ability to continue to raise adequate financing and to commence profitable operations in the future and repay its liabilities arising from normal operations as they come due. These conditions indicate that material uncertainties exist that may cast significant doubt on the Company's ability to continue as a going concern.

The Company's financial statements were authorized for issue by the Board of Directors (the "Board") on April 25, 2024.

2. BASIS OF PRESENTATION

(a) Statement of Compliance

These financial statements have been prepared in accordance with International Accounting Standards using accounting policies consistent with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and Interpretations of the International Financial Reporting Interpretations Committee ("IFRIC").

(b) Basis of Measurement

The financial statements have been prepared on a historical cost basis except for financial instruments classified at fair value through profit or loss ("FVTPL") which are stated at fair values. The accounting policies have been applied consistently throughout all periods presented in these financial statements.

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