Element 29 Resources : E29 Financial Statements Q2 2022

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited - Expressed in Canadian dollars)

Three and six month periods ended June 30, 2022

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

CONDENSED CONSOLIDATED INTERIM FINANCIAL REPORTING

The accompanying condensed consolidated interim financial statements of Element 29 Resources Inc. (the "Company") have been prepared by management in accordance with International Financial Reporting Standards ("IFRS"). Management acknowledges responsibility for the preparation and presentation of the condensed consolidated interim financial statements, including responsibility for significant accounting estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances.

NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL

STATEMENTS

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

Element 29 Resources Inc.

Condensed Consolidated Interim Statements of Financial Position

As at June 30, 2022 and December 31, 2021 (Unaudited)

(expressed in Canadian dollars, except where indicated)

		Note		June 30, 2022		December 31, 2021
Assets
Current assets
Cash			$	3,346,126	$	7,832,949
Restricted cash				25,000			25,000
Receivables				35,849			30,178
Prepaid expenses				154,792			50,082
Deposit				8,480			8,900
				3,570,247			7,947,109
Non-current assets
Property and equipment				68,746			75,993
Exploration and evaluation assets	3		12,672,870			9,780,611
				12,741,616			9,856,604
Total assets			$	16,311,863		$	17,803,713
Liabilities
Current liabilities
Accounts payable and accrued liabilities			$	431,051	$	751,337
Loan payable				40,000			40,000
Total liabilities				471,051			791,337
Shareholders' equity
Share capital	4		21,796,857			21,796,857
Reserves				2,619,711			1,416,811
Deficit				(8,575,756)			(6,201,292)
Total shareholders' equity				15,840,812			17,012,376
Total liabilities and shareholders' equity			$	16,311,863		$	17,803,713

Nature of operations (Note 1)

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

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Element 29 Resources Inc.

Condensed Consolidated Interim Statements of Comprehensive Loss

For the three and six months ended June 30, 2022 and 2021 (Unaudited)

(expressed in Canadian dollars, except where indicated)

		Three months ended June 30			Six months ended June 30
	Note		2022			2021			2022		2021
General and administrative expenses
Administration and office		$	42,908	$	36,779	$	94,264	$	60,564
Investor relations			179,911			196,319			354,194		338,955
Corporate development			79,295			-			176,126		-
Personnel costs	5		255,586			243,892			442,223		423,710
Professional fees			117,159			69,516			140,242		114,540
Filing fees			32,119			6,345			50,872		21,657
Foreign exchange (gain) loss			(21,533)			21,247			(60,494)		46,736
Share-based compensation	4,5		11,807			184,802			1,202,900		751,088
Depreciation			4,430			-			8,840		-
Other			(9,620)			1,464			(20,242)		2,656
Operating loss			692,062			760,364			2,388,925		1,759,906
Interest income			(8,364)			(5,389)			(14,461)		(13,122)
Loss and comprehensive loss		$	683,698	$	754,975	$	2,374,464	$	1,746,784
Loss per common share
Basic and fully diluted		$	(0.01)	$	(0.01)	$	(0.03)	$	(0.03)
Weighted average number of common shares			79,240,860			68,075,125			79,240,860		68,075,125
outstanding
Total common shares issued and outstanding	4		79,240,860			68,075,125			79,240,860		68,075,125

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

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Element 29 Resources Inc.

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity

For the six months ended June 30, 2022 and 2021 (Unaudited)

(expressed in Canadian dollars, except where indicated)

	Note		Number of			Share			Reserves			Deficit			Total
		Shares			capital
Balance at December 31, 2021		79,240,860	$	21,796,857	$	1,416,811	$	(6,201,292)	$	17,012,376
Loss and comprehensive loss			-			-			-			(2,374,464)			(2,374,464)
Share-based compensation	4		-			-			1,202,900			-			1,202,900
Balance at June 30, 2022			79,240,860		$	21,796,857		$	2,619,711		$	(8,575,756)		$	15,840,812
	Note		Number of			Share			Reserves			Deficit			Total
		Shares			capital
Balance at December 31, 2020		66,791,368	$	15,068,459	$	483,657	$	(3,295,573)	$	12,256,543
Issuance of share capital - share options		1,490,000			213,901			(54,901)			-			159,000
Loss and comprehensive loss		-			-			-			(1,746,784)			(1,746,784)
Share-based compensation		-			-			751,088			-			751,088
Balance at June 30, 2021			68,281,368		$	15,282,360		$	1,179,844		$	(5,042,357)		$	11,419,847

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

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