EnCore Energy : Financial Statements

enCore Energy Corp.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Unaudited - Prepared by Management) (Expressed in Canadian dollars)

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.

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

ENCORE ENERGY CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited - Prepared by Management)

(Expressed in Canadian dollars)

As at June 30, 2021 and December 31, 2020

				June 30,	December 31,
			Notes	2021		2020
	ASSETS
	Current
	Cash	$	4,929,034	$	6,603,281
	Receivables and prepaid expenses		457,185		323,563
				5,386,219		6,926,844
	Intangible assets	5	640,479		653,336
	Property, plant and equipment	6	1,713,106		1,890,494
	Investments	4	12,476,246		604,692
	Mineral properties	8	8,980,575		8,413,379
	Reclamation deposit	8	105,969		108,859
	Right of use asset	6	7,686		11,289
	Restricted cash	2	4,705,932		4,834,070
	Total assets	$	34,016,212	$	23,442,963
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Current
	Accounts payable and accrued liabilities	$	423,228	$	468,683
	Note payable	7,13	-		421,346
	Due to related parties		-		2,955
	Lease liability - current	6	7,122		7,316
				430,350		900,300
	Non - current
	Asset retirement obligations	9	6,339,786		6,670,432
	Lease liability - non-current	6	565		3,973
	Total liabilities		6,770,701		7,574,705
	Shareholders' Equity
	Share capital	11	51,886,384		36,093,475
	Share subscriptions received	11	-		-
	Contributed surplus	11	3,945,476		2,718,737
	Accumulated other comprehensive income		156,974		499,522
	Deficit		(28,743,323)		(23,443,476)
	Total shareholders' equity		27,245,511		15,868,258
	Total liabilities and shareholders' equity	$	34,016,212	$	23,442,963
Nature of operations and going concern (Note 1)
Subsequent Events (Note 18)
	Approved by the Board of Directors:
	"William M. Sheriff"	"William B. Harris"
	Director		Director

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

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ENCORE ENERGY CORP.

CONDENSED CONSILDATED INTERIM STATEMENS OF LOSS AND COMPREHENSIVE LOSS For the six months ended June 30, 2021 and 2020

(Unaudited - Prepared by Management) (Expressed in Canadian dollars)

			June 30,		June 30,
	Notes		2021		2020
Expenses
Amortization		$	688,926	$	12,857
Accretion			42,684		-
Consulting			55,712		57,293
Depreciation			151,456		-
Office and administration	12		117,118		51,584
Mineral Property Expenditures			2,364,346		-
Professional fees			481,955		59,990
Promotion and shareholder communications			88,574		80,614
Travel			2,489		21,616
Transfer agent and filing fees			108,521		25,966
Staff costs	12		781,362		146,568
Stock option expense	11,12		1,009,877		101,858
			(5,893,021)		(558,346)
Interest income			18,886		14,814
Foreign exchange gain			32,665		42,733
Gain on extinguishment of accounts payable			-		83,118
Gain on asset retirement obligation settlement			26,776		-
Loss on divestment of mineral interests			(112,123)		-
Gain on Investments	4		626,970		-
Loss for the year			(5,299,847)		(414,025)
Other comprehensive loss
Exchange differences on translating foreign
operations			(342,548)		234,126
Comprehensive loss for the period		$	(5,642,394)	$	(179,899)
Basic and diluted loss per share		$	(0.03)	$	(0.00)
Weighted average number of common
shares outstanding, basic and diluted			191,157,869		156,357,934

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

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ENCORE ENERGY CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS For the six months ended June 30, 2021 and 2020

(Unaudited - Prepared by Management) (Expressed in Canadian dollars)

		June 30,		June 30,
		2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period	$	(5,299,846)	$	(414,025)
Items not affecting cash:
Accretion		42,684		-
Amortization		688,926		12,857
Depreciation		151,456		-
Stock option expense		1,009,877		101,858
Gain on extinguishment of accounts payable		-		(83,118)
Gain on investment		(626,970)		-
Changes in non-cash working capital items:		-		-
Receivables and prepaids		(140,602)		(13,806)
Gain on asset retirement obligation settlement		(26,612)		-
Settlement of retirement obligation		(841,325)		-
Accounts payable and accrued liabilities		(448,770)		19,581
Due to related parties		(2,955)		(249,354)
Net cash used in operating activities		(5,494,137)		(626,007)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Investments - Uranium		(11,248,794)		-
Expenditures on property, plant and equipment		(23,332)		-
Investment in Group 11		-		(750,000)
Loss on divestment of mineral interests		243,806		-
Interest on restricted cash		(195)		-
Mineral properties expenditures		(1,038,599)		(77,466)
Net cash used in investing activities		(12,067,114)		(827,466)
CASH FLOWS FROM FINANCING ACTIVITIES
Private placements		15,000,000		-
Share issuance costs		(956,298)		-
Exercise of warrants		1,625,532		1,522,502
Exercise of stock options		340,538		37,563
Net cash provided by financing activities		16,009,772		1,560,065
Effect of exchange rate changes on cash		(122,768)		14,950
Change in cash		(1,674,247)		121,542
Cash, beginning		6,603,281		2,787,118
Cash, end	$	4,929,034	$	2,908,660

Supplemental cash flow information - Note 16

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

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