Exploits Discovery : 2021 Q3 FS

EXPLOITS DISCOVERY CORP. (formerly MARINER RESOURCES CORP.)

Condensed Consolidated Interim Financial Statements (unaudited)

For the nine months ended July 31, 2021 and 2020

Expressed in Canadian Dollars

Notice to Reader

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

The accompanying unaudited condensed interim consolidated 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 condensed interim consolidated financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

EXPLOITS DISCOVERY CORP. (FORMERLY MARINER RESOURCES CORP.)

Consolidated Statements of Financial Position (unaudited)

Expressed in Canadian Dollars

As at		July 31, 2021	October 31, 2020
			Restated - Note 10
Assets
Current assets
Cash	$	15,199,344	$	2,964,363
Receivables		615,467		117,306
Investment (Note 3)		693,250		105,000
Prepaid expenses		159,361		180,830
Total current assets		16,667,422		3,367,499

Equipment		49,486		-
Mineral properties (Note 4)		22,425,004		17,447,997
Total assets	$	39,141,912	$	20,815,496
Current liabilities
Accounts payable and accrued liabilities	$	1,000,494	$	672,776
Shareholder's equity
Share capital (Note 5)		44,734,063		16,968,055
Obligation to issue shares		600,000		4,134,000
Option & warrant reserve (Note 5)		3,203,523		1,855,074
Deficit		(10,396,168)		(2,814,409)
Total equity		38,141,418		20,142,720
Total liabilities and equity	$	39,141,912	$	20,815,496

Nature of operations and going concern (Note 1)

Subsequent events (Note 9)

The accompanying notes form an integral part of these financial statements

EXPLOITS DISCOVERY CORP.

Consolidated Statements of Loss and Comprehensive Loss (unaudited)

Expressed in Canadian Dollars

		Three months ended July 31		Nine months ended July 31
		2021		2020		2021		2020
			Restated - Note 10			Restated - Note 10
Expenses
Amortization	$	2,604	$	-	$	2,604	$	-
Investor relations		209,729		13,154		1,526,632		14,934
Exploration & evaluation expenditures (Note 4)		2,266,984		38,449		3,999,554		45,703
Management fees		154,500		11,000		396,193		23,000
Office and administrative		71,673		10,326		130,084		16,806
Professional fees		13,701		11,065		109,956		28,565
Regulatory and filing fees		15,543		8,355		66,805		16,555
Stock-based compensation (Note 5)		1,390,257		-		1,924,257		-
	(4,124,991)		(92,349)		(8,156,085)		(145,563)
Other income (loss)
Fair value adjustment on investment (Note 3)		32,475		-		384,975		-
Recognition of flow through income		189,343		-		189,343		-
Interest income		(3,167)		510		8		1,718
Comprehensive loss	$ (3,906,340)	$	(91,849)	$	(7,581,759)	$	(143,845)
Basic and diluted loss per common share	$	(0.04)	$	(0.01)	$	(0.10)	$	(0.02)
Basic and diluted weighted average
number of common shares		97,666,974	7,022,222		78,892,455	6,674,074
outstanding

The accompanying notes form an integral part of these financial statements

EXPLOITS DISCOVERY CORP.

	Consolidated Statement of Changes in Equity	(unaudited)
	Expressed in Canadian Dollars
					Option and		Obligation
		Shares		Share		warrant		to issue			Total
		outstanding		capital		reserve		shares	Deficit		equity
Balance at October 31, 2019	6,500,000	$	402,779	$	15,400	$	-	$ (223,844)	$	194,335
(Restated - Note 13)
Shares issued for cash	15,134,050		4,130,831		(10,724)		-	-		4,120,107
Share issued for mineral	31,894,052		12,569,768		290,000		-	-		12,859,768
properties
Share issuance costs	-		(135,323)		45,198		-	-		(90,125)
Share-based compensation	-		-		1,515,200			-		1,515,200
Obligation to issue shares	-		-		-		4,134,000	-		4,134,000
Net loss	-		-		-		-	(2,590,565)		(2,590,565)
Balance at October 31, 2020	53,528,102	$	16,968,055	$	1,855,074	$ 4,134,000	$ (2,814,409)	$	20,142,720
Units and shares issued
for cash	29,973,566		15,897,720		(140)		-	-		15,897,580
Issuance costs	111,111		(377,263)		81,854		-	-		(295,409)
Share issued for mineral	7,112,799		4,464,191		-		-	-		4,464,191
properties
Obligation to issue shares	6,200,000		3,534,000		-		(3,534,000)	-		-
Shares issued on exercise of
options and warrants	5,770,864		4,247,359		(657,522)		-	-		3,589,838
Share-based compensation	-		-		1,924,257		-	-		1,924,257
Net loss	-		-		-		-	(7,584,259)		(7,584,259)
Balance at July 31, 2021	102,696,442	$	44,734,063	$	3,203,523		$ 600,000	$ (10,398,668)	$	38,138,918

The accompanying notes form an integral part of these financial statements