EnCore Energy : March 31, 2022 Financial Statements

enCore Energy Corp.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021 (Expressed in Canadian dollars)

Notice of No Auditor Review of Unaudited Condensed Interim Consolidated Financial Statements

The accompanying unaudited condensed interim consolidated financial statements of enCore Energy Corp. (the "Company") as at March 31, 2022 and for the period then ended have been prepared by and are the responsibility of the Company's management. The Company's Audit Committee has reviewed and approved these unaudited condensed interim consolidated financial statements. In accordance with National Instrument 51 - 102, the Company discloses that its auditors have not reviewed the accompanying unaudited condensed interim consolidated financial statements for the periods ended March 31, 2022 and 2021

ENCORE ENERGY CORP.

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

(Expressed in Canadian dollars) As at March 31, 2022 and 2021

				March 31,	December 31,
			Notes	2022		2021
	ASSETS
	Current
	Cash	$	32,913,052	$	11,649,157
	Receivables and prepaid expenses		1,208,576		795,141
	Deposits	13	2,499,200		-
	Assets held for sale	10	2,175,634		2,207,231
				47,231,262		14,651,619
	Intangible assets	6	642,805		649,233
	Property, plant and equipment	7	2,088,118		2,032,909
	Investment in associate	4	641,060		746,487
	Investment in uranium	5	-		5,337,438
	Mineral properties	10	172,010,162		172,521,685
	Reclamation deposit	10	110,590		112,200
	Right of use asset	8	278,079		307,260
	Restricted cash	2	5,644,704		5,726,828
	Total assets	$	220,211,980	$	202,085,659
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Current
	Accounts payable and accrued liabilities	$	2,314,640	$	7,397,760
	Due to related parties	15	9,334		8,739
	Lease liability - current	8	102,893		104,107
				2,426,867		7,510,606
	Non - current
	Asset retirement obligations	11	5,356,771		5,294,958
	Lease liability - non-current	8	184,690		212,220
	Total liabilities		7,968,328		13,017,784
	Shareholders' Equity
	Share capital	14	234,972,789		206,480,756
	Contributed surplus	14	18,481,411		16,059,307
	Accumulated other comprehensive income		(1,940,942)		705,604
	Deficit		(39,269,606)		(34,177,792)
	Total shareholders' equity		212,243,652		189,067,875
			$	220,211,980	$	202,085,659
Nature of operations and going concern (Note 1)
Subsequent Events (Note 20)
	Approved by the Board of Directors:
	"William M. Sheriff"	"William B. Harris"
	Director		Director

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

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ENCORE ENERGY CORP.

CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS For the three months ended March 31, 2022 and 2021

(Expressed in Canadian dollars)

			March 31,		March 31,
	Notes		2022		2021
Expenses
Amortization and depreciation	6,7,8	$	105,394	$	426,496
Accretion	11		140,272		(5,517)
Consulting			92,864		26,324
General administrative costs	15		1,641,510		1,335,810
Interest expense			5,352		-
Professional fees			258,101		284,557
Promotion and shareholder communications			47,484		38,057
Travel			94,342		2,489
Transfer agent and filing fees			106,434		84,117
Staff costs	15		1,039,377		381,231
Stock option expense	14,15		1,555,127		519,667
			(5,086,257)		(3,093,231)
Interest income			7,198		9,508
Foreign exchange gain (loss)			(16,183)		4.709
Gain (loss) on divestment of mineral interests	10		61,385		(134,088)
Gain on sale of uranium investment	5		44,317		-
Loss on investment in associate	4		(102,274)		(18,897)
Loss for the year			(5,091,814)		(3,231,999)
Other comprehensive income (loss)
Exchange differences on translating foreign
operations			(2,646,780)		(113,912)
Comprehensive loss for the year		$	(7,738,594)	$	(3,345,911)
Basic and diluted loss per share		$	(0.03)	$	(0.02)
Weighted average number of common
shares outstanding, basic and diluted			298,885,004		166,552,891

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

statements.

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ENCORE ENERGY CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS For the three months ended March 31, 2022 and 2021

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

		March 31,		March 31,
		2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period	$	(5,091,814)	$	(3,231,999)
Items not affecting cash:
Accretion		140,272		21,667
Amortization and depreciation		105,394		426,496
Gain on change in ARO		-		(27,184)
Gain on sale of uranium		(44,317)		-
Unrealized loss in associate		102,274		18,897
Interest expense		5,352		-
(Gain) Loss on divestment of mineral interests		(61,385)		247,521
Stock option expense		1,555,127		519,667
Changes in non-cash working capital items:
Accounts payable and accrued liabilities		(1,646,720)		(356,071)
Deposit for future uranium purchase		(2,499,200)		-
Contracts Payable		(3,436,400)		-
Due to related parties		595		78,844
Receivables and prepaids		(413,435)		(411,124)
Net cash used in operating activities		(11,284,257)		(2,713,286)
CASH FLOWS FROM INVESTING ACTIVITIES
Deferred exploration costs		(1,964,687)		(260,091)
Expenditures on property, plant and equipment		(155,519)		-
Proceeds received from sale of uranium investment		5,310,800		-
Proceeds received from divestment of mineral interests		61,385		-
Interest on restricted cash		7,198		180
Settlement of retirement obligation		(609)		(520,526)
Net cash used in investing activities		3,258,568		(780,437)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of lease liability		(27,785)		-
Cash payment of interest on leases		(5,338)		-
Financings		29,999,998		15,000,000
Share issuance costs		(1,914,657)		(947,855)
Shares issued for services		795,117		-
Exercise of warrants		463,088		1,165,313
Exercise of stock options		18,851		118,850
Net cash provided by financing activities		29,329,274		15,336,308
Effect of exchange rate changes on cash		(39,690)		(16,225)
Change in cash		21,263,895		11,826,360
Cash, beginning		11,649,157		6,603,281
Cash, ending		$32,913,052		$18,429,641

Supplemental disclosure with respect to cash flows - Note 19

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

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