Highbank Resources : FS 2022 - 2Q

HIGHBANK RESOURCES LTD.

Condensed Interim Financial Statements

For the period ended June 30, 2022

Unaudited - 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 financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

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

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

HIGHBANK RESOURCES LTD.

Condensed Interim Statements of Financial Position (Unaudited - Expressed in Canadian dollars)

			June 30,	December 31,
	Notes		2022		2021
ASSETS
Current assets
Cash		$	14,956	$	2,204
Accounts receivable			4,279		2,383
Due from related parties	11		1,704		1,704
Prepaid expenses			8,467		5,866
			29,406		12,157
Non-current assets
Property and equipment	4		707		758
Reclamation bond	6		189,500		189,500
Exploration and evaluation assets	5		3		3
			190,210		190,261
TOTAL ASSETS		$	219,616	$	202,418
LIABILITIES
Current liabilities
Trade payables and accrued liabilities	7	$	2,295,147	$	2,139,161
Promissory notes	10		3,063,940		2,880,075
Due to related parties	11		1,156,439		1,054,034
Production loan	4, 10		900,000		900,000
Convertible debentures	10		-		-
			7,415,526		6,973,270
Non-current liabilities
Convertible debentures	10		2,874,495		2,592,094
Reclamation obligation	6		94,750		94,750
			2,969,245		2,686,844
TOTAL LIABILITIES			10,384,771		9,660,114
SHAREHOLDERS' EQUITY (DEFICIT)
Share capital	8		17,190,033		17,189,233
Share subscription advance (receivable)			(6,650)		(6,650)
Equity component of convertible debentures	10		1,207,205		1,207,205
Contributed surplus	9		1,509,658		1,509,658
Deficit			(30,065,401)		(29,357,142)
TOTAL SHAREHOLDERS' EQUITY (DEFICIT)			(10,165,155)		(9,457,696)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)	$	219,616	$	202,418

Nature and continuance of operations (Note 1)

Commitments (Notes 4 and 11)

Contingency (Note 5)

Subsequent events (Note 14)

Approved on behalf of the Board:

"Gary Musil"	"Mark Luchinski"
Director	Director
See accompanying notes to the financial statements

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HIGHBANK RESOURCES LTD.

Condensed Interim Statements of Comprehensive Loss (Unaudited - Expressed in Canadian dollars)

			Three months ended June 30,		Six months ended June 30,
	Notes		2022		2021		2022		2021
Expenses
Depreciation	4	$	25	$	30	$	50	$	60
Interest and bank charges			52,264		42,191		76,081		69,329
Loan bonus shares	8		800		800		800		800
Management fees	11		37,500		37,500		75,000		75,000
Office and miscellaneous	11		1,961		73		1,961		1,178
Professional fees			19,496		5,491		21,648		12,807
Regulatory and transfer agent			10,298		6,233		12,027		11,851
Rent	11		2,250		2,250		4,500		4,500
Shareholder information			3,180		120		3,180		518
Travel and promotion			285		128		363		1,143
			128,059		94,816		195,610		177,186
Other items
Property maintenance			-		-		2,082		-
Interest on promissory notes, convertible
debentures, and production loan	10, 11		261,050		62,486		510,567		224,773
			261,050		62,486		512,649		224,773
Net and comprehensive loss for the period		$	389,109	$	157,302	$	708,259	$	401,959
Weighted average number of common
shares outstanding (basic and diluted)			14,010,672		13,991,497		13,947,375		13,990,662
Basic and diluted net loss per share		$	(0.03)	$	(0.01)	$	(0.05)	$	(0.03)

See accompanying notes to the financial statements

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HIGHBANK RESOURCES LTD.

Condensed Interim Statements of Changes in Shareholders' Equity (Deficit) (Unaudited - Expressed in Canadian dollars)

	Share capital
					Share		Equity
				subscription	component of
	Number of				advance	convertible	Contributed
	shares		Amount	(receivable)	debenture		Surplus	Deficit		Total
Balance at January 1, 2021	13,990,372	$	17,188,433	$	(6,650)	$	-	$	1,509,658	$ (20,922,257)	$	(2,230,816)
Loss for the period	-		-		-		-		-	(401,959)		(401,959)
Bonus shares and finders fee issued	4,000		800		-		-		-	-		800
Equity component of convertible debenture	-		-		-		1,653,705		-	-		1,653,705
Balance at June 30, 2021	13,994,372	$	17,189,233	$	(6,650)	$	1,653,705	$	1,509,658	$ (21,324,216)	$	(978,270)
Balance at January 1, 2022	13,994,672	$	17,189,233	$	(6,650)	$	1,207,205	$	1,509,658	$ (29,357,142)	$	(9,457,696)
Loss for the period	-		-		-		-		-	(708,259)		(708,259)
Bonus shares and finders fee issued	16,000		800		-		-		-	-		800
Balance at June 30, 2022	14,010,672	$	17,190,033	$	(6,650)	$	1,207,205	$	1,509,658	$ (30,065,401)	$	(10,165,155)

See accompanying notes to the financial statements

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