GOLDQUEST MINING CORP.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023

(UNAUDITED)

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

The accompanying unaudited interim financial statements of GoldQuest Mining Corp. for the nine months ended September 30, 2023 have been prepared by the management of the Company and approved by the Company's Audit

Committee and the Company's Board of Directors.

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

Table of Contents

Condensed Consolidated Interim Statements of Financial Position (unaudited) ....................................... 4

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (unaudited) ..................... 5

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (unaudited)................. 6

Condensed Consolidated Interim Statements of Cash Flows (unaudited) ................................................. 7

Notes to the Condensed Consolidated Interim Financial Statements (unaudited) ..................................... 8

1. Corporate information and continuance of operations ............................................................................. 8

Condensed Consolidated Interim Statements of Financial Position (unaudited) (Expressed in Canadian Dollars)

ASSETS

Current assets

10,031,523

12,017,938

42,750

64,219

TOTAL ASSETS

10,074,273

12,082,157

TOTAL LIABILITIES

194,955

140,719

Equity attributable to owners of the Company

9,879,318

11,941,438

TOTAL SHAREHOLDERS' EQUITY

9,879,318

11,941,438

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

10,074,273

12,082,157

As at

September 30,

December 31,

2023

2022

Note(s)

$

$

Cash and cash equivalents

4

9,818,919

11,796,562

Amounts receivable

70,847

71,456

Prepaid expenses

117,861

127,843

Deposits

23,896

22,077

Non-current assets

Long-term investments

5

18,000

22,500

Equipment

6

24,749

41,718

Evaluation and exploration assets

7

1

1

LIABILITIES

Current liabilities

Accounts payable and accrued liabilities

9, 11

194,955

140,719

SHAREHOLDERS' EQUITY

Share capital

10

73,461,074

73,461,074

Stock options reserve

10

2,212,572

2,138,732

Additional paid-in capital

10

18,691,628

18,621,296

Deficit

(84,479,956)

(82,278,164)

Accumulated other comprehensive income (loss)

(6,000)

(1,500)

Corporate information and continuance of operations

1

Commitments

12

Segmented information

13

These unaudited condensed consolidated interim financial statements were approved for issue by the Board of Directors and signed on its behalf by:

/s/ Luis Santana Director

/s/ Florian Siegfried Director

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (unaudited) (Expressed in Canadian Dollars)

For the three months endedFor the nine months endedNote(s)September 30, 2023 $

September 30, 2022 $

September 30, 2023 $

September 30, 2022 $

Expenses

18,000 18,000

Consulting fees Depreciation

Evaluation and exploration costs Foreign exchange (gain) loss General and administrative Investor relations and promotion Management and directors' fees Professional fees

Project evaluation costs Regulatory and filing fees Rent

Salaries and wages Share-based payments Travel

6 7

6,000

5,847

18,000 6,102

18,077 18,259

189,163

178,141 1,004,904 348,480

40,839

(40,261)

98,471

(18,079)

43,821

47,789

184,186 125,027

3,149

27,740

54,092 61,092

11 11

130,420

238,429

414,580 424,429

43,131

43,703 -

143,898 186,632

11,541

11,541

-

20,571

2,319

56,739 46,490

20,831

9,534

65,084 24,026

11 10, 11

61,881

63,355

197,977 173,232

99,298

103,628

144,172 449,567

(108)

7,123

3,912 12,942

(676,384)

(705,602)

(2,415,633)

(1,870,097)

Other income Interest income

49,138

69,712

213,841

114,157

Net loss

(627,246)

(635,890)

(2,201,792)

(1,755,940)

Other comprehensive income (loss)

Items that may be reclassified subsequently to profit or loss:

Change in fair value on available-for-sale investments

5

-

(1,500)

(4,500)

(12,000)

Total comprehensive loss

(627,246)

(637,390)

(2,206,292)

(1,767,940)

Basic and diluted loss per share for the period attributable to common shareholders ($ per common share)

(0.00)

(0.00)

(0.01)

(0.01)Weighted average number of common shares outstanding - basic and diluted

259,442,384

259,442,384

259,442,384

259,442,384

GoldQuest Mining Corp

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (unaudited)

(Expressed in Canadian Dollars)

Note(s)Accumulated other

Stock options

Additional

comprehensive

Share capital

reserve

paid-in capital

Deficit

income (loss)

TOTAL

#

$

$

$

$

$

$

Balance as of December 31, 2022

259,442,384

73,461,074

2,138,732

18,621,296

(82,278,164)

(1,500)

11,941,438

Share-based payments

10

-

-

144,172

-

-

-

144,172

Loss and comprehensive loss

-

-

-

-

(2,201,792)

(4,500)

(2,206,292)

Balance as of September 30, 2023

259,442,384

73,461,074

2,282,904

18,621,296

(84,479,956)

(6,000)

9,879,318

Balance as of December 31, 2021

259,442,384

73,461,074

3,663,448

16,552,713

(79,568,866)

7,500

14,115,869

Reclassification of grant-date fair value on expired stock options

10

-

-

(2,068,583)

2,068,583

-

-

-

Share-based payments

10

-

-

449,567

-

-

-

449,567

Loss and comprehensive loss

-

-

-

-

(1,755,940)

(12,000)

(1,767,940)

Balance as of September 30, 2022

259,442,384

73,461,074

2,044,432

18,621,296

(81,324,806)

(4,500)

12,797,496

Condensed Consolidated Interim Statements of Cash Flows (unaudited) (Expressed in Canadian Dollars)

For the nine months ended

Cash flow from (used in)

OPERATING ACTIVITIES

Cash flow used in operating activities

(1,976,535)

(1,250,757)

Cash flow used in investing activities

(1,108)

(2,761)

Decrease in cash and cash equivalents

(1,977,643)

(1,253,518)

Cash and cash equivalents, beginning of period

11,796,562

14,052,296

Cash and cash equivalents, end of period

9,818,919

12,798,778

September 30,

September 30,

2023

2022

Note(s)

$

$

Net loss

(2,201,792)

(1,755,940)

Depreciation

6

18,077

18,259

Share-based payments

10

144,172

449,567

Net changes in non-cash working capital items:

Amounts receivable

609

(20,531)

Prepaid expenses

9,982

25,334

Deposits

(1,819)

(2,977)

Accounts payable and accrued liabilities

54,236

35,531

INVESTING ACTIVITIES

Purchase of equipment

6

(1,108)

(2,761)

Supplemental cash flow information

Reclassification of grant-date fair value on expired stock

70,332

2,068,583

options

10

Cash paid for income taxes

-

-

Cash paid for interest

-

-

(Expressed in Canadian Dollars)

1. CORPORATE INFORMATION AND CONTINUANCE OF OPERATIONS

GoldQuest Mining Corp. (the "Company" or "GoldQuest") is a publicly listed company incorporated in British Columbia on July 12, 1989 and its shares are listed on the TSX Venture Exchange under the symbol "GQC". The Company together with its subsidiaries (collectively referred to as the "Company") is engaged in the identification, acquisition and exploration of mineral properties. The Company's registered office is located at Suite 2600, 595

Burrard Street, Vancouver, British Columbia, V7X 1L3.

The business of mining and exploring for minerals involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The recoverability of the carrying value of evaluation and exploration properties and the Company's continued existence is dependent upon the preservation of its interest in the underlying properties, the discovery of economically recoverable reserves, the achievement of profitable operations, or the ability of the Company to raise alternative financing, if necessary, or alternatively upon the Company's ability to dispose of its interests on an advantageous basis. Changes in future conditions could require material write-downs of the carrying values. The Company's exploration assets are located outside of Canada and are subject to the risk of foreign investment, including political uncertainty, increases in taxes and royalties, renegotiation of contracts and currency exchange fluctuations.

Although the Company has taken steps to verify title to the properties on which it is conducting exploration and in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company's title. Property title may be subject to unregistered

prior agreements, unregistered claims, other land claims and non-compliance with regulatory and environmental requirements.

These unaudited condensed consolidated interim financial statements have been prepared on the assumption that the Company and its subsidiaries will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations.

Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. As at September 30, 2023, the Company had not advanced its property to commercial production and is not able to finance day to day activities through operations. The Company's continuation as a

going concern is dependent upon the successful results from its mineral property exploration activities and its ability to attain profitable operations and generate funds there from and/or raise equity capital or borrowings sufficient to meet current and future obligations. Management intends to fund operating costs over the next twelve months with cash and cash equivalents and through further equity financings.

Financial Reporting and Disclosure during Economic Uncertainty

In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic; the Company has not been significantly impacted by the spread of COVID-19. However, the ongoing COVID-19 pandemic, inflationary pressures, rising interest rates, the global financial climate and the conflict in Ukraine are affecting current economic conditions and increasing economic uncertainty, which may impact the Company's operating performance, financial position and the Company's ability to raise funds at this time.

The unaudited condensed consolidated interim financial statements of GoldQuest for the nine months ended September 30, 2023 were approved by the Board of Directors on November 29, 2023.

(Expressed in Canadian Dollars)

2. SIGNIFICANT ACCOUNTING STANDARDS AND BASIS OF PREPARATION

Statement of compliance to International Financial Reporting Standards

These unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). These financial statements comply with International Accounting Standard 34, Interim Financial

Reporting.

Basis of presentation

These unaudited condensed consolidated interim financial statements include the accounts of GoldQuest and its subsidiaries. This interim financial report does not include all of the information required of a full annual financial report and is intended to provide users with an update in relation to events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the end of the last annual reporting period. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Company for the year ended December 31, 2022.

New accounting standards

There were no new or amended IFRS pronouncements effective January 1, 2023 that impacted these condensed consolidated interim financial statements.

3. JOINT OPERATION

On January 17, 2020, the Company entered into a joint agreement with Precipitate Gold Corporation that is accounted for as a joint operation under IFRS 11 Joint Arrangements. The purpose of the joint operation was to acquire exploration equipment that can be used by both parties on their respective projects.

The joint operation was made through the incorporation of Toro Negro drilling S.R.L ("Toro Negro"), a company incorporated under the laws of the Dominican Republic on January 30, 2020. The participating interests of both parties at the time of the joint operation is 50% with each party responsible for payment of its proportionate share of operating and capital costs. Upon formation of the joint operation, a management committee (the

"Management Committee") consisting of two representatives of each party and holding voting rights in accordance with each party's participating interest, was established which shall make all decisions which are

required to be made by the joint operation participants.

The Management Committee shall be responsible for managing the exploration equipment acquired.

4. CASH AND CASH EQUIVALENTS

The Company's cash and cash equivalents are broken down as follows:

September 30, 2023

December 31, 2022

$

$

Cash

3,232,018

10,996,997

Cash equivalents

6,586,901

799,565

9,818,919

11,796,562

Page 9 of 20

Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Nine Months Ended September 30, 2023

(Expressed in Canadian Dollars)

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Goldquest Mining Corporation published this content on 25 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 17:38:04 UTC.