HIGHGOLD MINING INC.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AS AT SEPTEMBER 30, 2021

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

HIGHGOLD MINING INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2021 AND DECEMBER 31, 2020

(Expressed in Canadian dollars) (Unaudited)

September 30,

December 31,

2021

2020

ASSETS

Current Assets

Cash and cash equivalents

$

11,503,090

$

17,946,613

Amounts receivable

39,107

255,556

Prepaid expenses and deposits

384,877

324,194

Marketable securities (Note 3)

350,100

378,000

12,277,174

18,904,363

Equipment (Note 4)

119,284

46,275

Exploration and evaluation assets (Note 5)

33,444,468

21,365,684

$

45,840,926

$

40,316,322

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Accounts payable and accrued liabilities (Note 7)

$

2,143,473

$

762,318

Flow-through premium (Note 6)

-

129,500

2,143,473

891,818

SHAREHOLDERS' EQUITY

Share capital (Note 6)

45,144,103

40,421,489

Contributed surplus (Note 6)

2,077,701

1,066,392

Deficit

(3,524,351)

(2,063,377)

43,697,453

39,424,504

$

45,840,926

$

40,316,322

Subsequent events (Note 11)

Approved on behalf of the Board of Directors of HighGold Mining Inc. on November 24, 2021

'Aris Morfopoulos'

'Darwin Green'

Director

Director

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

1

HIGHGOLD MINING INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(Expressed in Canadian dollars) (Unaudited)

Three months

Three months

Nine months

Nine months

ended

ended

ended

ended

September 30,

September 30,

September 30,

September 30,

2021

2020

2021

2020

EXPENSES

Advertising and promotion

$

40,829

$

42,310

$

101,830

$

92,272

Consulting fees (Note 7)

3,000

150,531

26,763

254,531

Filing and transfer agent

20,136

12,478

77,667

59,379

Foreign exchange loss (gain)

7,051

(14,246)

104,891

59,614

Insurance

20,276

14,132

53,657

37,229

Office and miscellaneous

62,293

46,273

106,918

160,243

Professional fees

74,801

57,427

163,086

173,559

Rent

16,836

16,836

30,304

30,304

Salaries, wages and benefits (Note 7)

122,187

42,129

363,752

312,256

Share-based compensation (Notes 6

and 7)

145,457

78,435

617,385

389,976

Travel

22,994

-

25,561

15,670

Net loss before other items

(535,860)

(446,305)

(1,671,814)

(1,585,033)

OTHER ITEMS

Gain on sale of exploration and

evaluation assets (Note 5)

145,489

348,229

145,489

348,229

General exploration expenses

-

-

(14,540)

-

Interest income

5,489

25,850

33,341

116,481

Flow-through recovery (Note 6)

-

-

129,500

704,000

Realized loss on marketable

securities (Note 3)

(3,100)

-

(3,100)

-

Unrealized gain (loss) on marketable

securities (Note 3)

42,650

62,750

(79,850)

62,750

Net loss and comprehensive loss

$

(345,332)

$

(9,476)

$

(1,460,974)

$

(353,573)

Basic and diluted loss per share

$

(0.01)

$

(0.00)

$

(0.03)

$

(0.01)

Weighted average number of common

shares outstanding

Basic and diluted

59,335,613

47,987,150

57,059,462

42,940,390

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

2

HIGHGOLD MINING INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(Expressed in Canadian dollars) (Unaudited)

Share Capital

Number of

Contributed

shares

Amount

surplus

Deficit

Total

As at December 31, 2019

40,023,075

$

18,743,032

$

298,001

$

(1,324,578)

$

17,716,455

Private placement

8,423,475

14,572,612

-

-

14,572,612

Exercise of stock options

317,909

385,132

(28,350)

-

356,782

Exercise of share purchase warrants

3,147,193

3,045,747

(18,120)

-

3,027,627

Shares issued for exploration and evaluation assets

215,000

410,250

-

-

410,250

Share issue costs

-

(984,421)

-

-

(984,421)

Share-based compensation

-

-

697,751

-

697,751

Net loss for the period

-

-

-

(353,573)

(353,573)

As at September 30, 2020

52,126,652

$

36,172,352

$

949,282

$

(1,678,151)

$

35,443,483

Private placement

1,850,000

3,700,000

-

-

3700,000

Exercise of stock options

12,500

9,205

1,546

-

10,751

Exercise of share purchase warrants

172,000

120,400

-

-

120,400

Shares issued for exploration and evaluation assets

439,976

766,084

-

-

766,084

Share issue costs

-

(217,052)

-

-

(217,052)

Flow-through premium

-

(129,500)

-

-

(129,500)

Share-based compensation

-

-

115,564

-

115,564

Net loss for the period

-

-

-

(385,226)

(385,226)

As at December 31, 2020

54,601,128

$

40,421,489

$

1,066,392

$

(2,063,377)

$

39,424,504

Exercise of stock options

412,498

296,543

(54,462)

-

242,081

Exercise of share purchase warrants

5,809,352

4,045,608

-

-

4,045,608

Shares issued for exploration and evaluation assets

288,472

380,463

-

-

380,463

Share-based compensation

-

-

1,065,771

-

1,065,771

Net loss for the period

-

-

-

(1,460,974)

(1,460,974)

As at September 30, 2021

61,111,450

$

45,144,103

$

2,077,701

$

(3,524,351)

$

43,697,453

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

3

HIGHGOLD MINING INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(Expressed in Canadian dollars) (Unaudited)

Nine months ended

Nine months ended

September 30, 2021

September 30, 2020

OPERATING ACTIVITIES

Net loss

$

(1,460,974)

$

(353,573)

Adjustments for non-cash items:

Gain on the sale of exploration and evaluation assets

(145,489)

(348,229)

Flow-through recovery

(129,500)

(704,000)

Share-based compensation

617,385

389,976

Realized loss on marketable securities

3,100

-

Unrealized loss (gain) on marketable securities

79,850

(62,750)

Change in non-cash working capital:

Amounts receivable

216,449

(11,526)

Prepaid expenses and deposits

(60,683)

(7,765)

Accounts payable and accrued liabilities

34,442

(54,238)

Cash used in operating activities

(845,420)

(1,152,105)

INVESTING ACTIVITIES

Proceeds from sale of marketable securities

69,950

-

Proceeds from sale of Yukon mining claims

25,000

-

Purchase of equipment

(86,433)

(51,417)

Exploration and evaluation costs

(9,894,309)

(8,861,216)

Cash used in investing activities

(9,885,792)

(8,912,633)

FINANCING ACTIVITIES

Proceeds from private placements

-

14,572,612

Proceeds from exercise of stock options

242,081

325,699

Proceeds from exercise of share purchase warrants

4,045,608

3,027,627

Share issue costs

-

(984,421)

Cash provided by financing activities

4,287,689

16,941,517

Increase (Decrease) in cash and cash equivalents

(6,443,523)

6,876,779

Cash and cash equivalents, beginning of period

17,946,613

12,601,200

Cash and cash equivalents, end of period

$

11,503,090

$

19,477,979

Supplemental information with respect to cash flows:

Exploration and evaluation expenses included in accounts payable

$

1,346,713

$

1,091,736

Exploration and evaluation expenses repaid to Constantine Metal

Resources Ltd.

$

-

$

155,858

Common shares issued for exploration and evaluation assets

$

380,463

$

410,250

Common shares of Snowline Gold Corp. received from sale of

Yukon mining claims

$

125,000

$

-

Depreciation capitalized to exploration and evaluation assets

$

13,424

$

3,857

Share-based compensation capitalized to exploration and

evaluation assets

$

448,386

$

307,775

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

4

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Highgold Mining Inc. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 17:10:04 UTC.