Metallis Resources : Q2 Financial report-June 30, 2022

METALLIS RESOURCES INC.

Condensed Interim Financial Statements

June 30, 2022

(Expressed in Canadian Dollars)

1

METALLIS RESOURCES INC.

Index to Condensed Interim Financial Statements

For the three and six-month periods ended June 30, 2022

(Expressed in Canadian Dollars)

(Unaudited - prepared by management)

	Page
MANAGEMENT'S RESPONSIBILITY FOR UNAUDITED CONDENSED INTERIM FINANCIAL
STATEMENTS AND NOTICE OF NO AUDITOR REVIEW	3
FINANCIAL STATEMENTS
Condensed Interim Statements of Financial Position	4
Condensed Interim Statements of Operations and Comprehensive Loss	5
Condensed Interim Statements of Changes in Equity	6
Condensed Interim Statements of Cash Flows	7
Notes to Condensed Interim Financial Statements	8-22

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MANAGEMENT'S RESPONSIBILITY FOR UNAUDITED CONDENSED INTERIM

FINANCIAL STATEMENTS AND NOTICE OF NO AUDITOR REVIEW

The accompanying condensed interim financial statements of Metallis Resources Inc. (the "Company") are the responsibility of management and have not been reviewed by the Company's auditors.

These condensed interim financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with the accounting policies disclosed in the notes to the unaudited condensed interim financial statements. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the financial position date. In the opinion of management, the condensed interim financial statements have been prepared within acceptable limits of materiality and are in accordance with International Accounting Standard 34-Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards appropriate in the circumstances.

The Company has established processes, which are in place to provide it sufficient knowledge to support management representations that it has exercised reasonable diligence that (i) the condensed interim financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of, and for the periods presented by, the condensed interim financial statements and (ii) the condensed interim financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods presented by the condensed interim financial statements.

The Board of Directors is responsible for reviewing and approving the condensed interim financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the condensed interim financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the condensed interim financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

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METALLIS RESOURCES INC.

Condensed Interim Statements of Financial Position

(Expressed in Canadian Dollars) (Unaudited - prepared by management)

			June 30,	December 31,
		2022	2021
	ASSETS
Current assets
Cash and cash equivalents		$	2,043,666	$	800,793
Receivables (Note 3)				144,710		174,365
Deposits and prepaid expenses (Note 4)			19,802		21,206
Loans due from related parties (Note 10)			-		48,420
Due from related party (Note 10)			1,153		496
Total current assets				2,209,331		1,045,280
Equipment (Note 5)				5,265		13,729
Exploration and evaluation assets (Notes 6 and 10)			12,899,555		12,696,192
Net investment in sublease (Note 7)			-		9,958
Total assets		$	15,114,151	$	13,765,159
	LIABILITIES
Current liabilities
Accounts payable and accrued liabilities (Note 7)	$	76,694	$	48,314
Lease liability (Note 7)				-		19,918
Flow-through share premium liability (Note 8)			163,558		-
Total current liabilities				240,252		68,232
Total liabilities				240,252		68,232
	EQUITY
Share capital (Note 9)				23,536,942		22,006,727
Equity reserves				4,159,187		4,159,187
Deficit		(12,822,230)	(12,468,987)
Total equity				14,873,899		13,696,927
Total liabilities and equity		$	15,114,151	$	13,765,159
Nature and Continuance of Operations and Going Concern (Note 1)
Events after the reporting period (Note 14)
Approved and authorized on behalf of the Board on August 29, 2022
"Fiore Aliperti" Director	"Michael Sikich" Director

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

METALLIS RESOURCES INC.

Condensed Interim Statements of Operations and Comprehensive Loss For the three and six-month periods ended June 30, 2022 and 2021 (Expressed in Canadian Dollars)

(Unaudited - prepared by management)

		Three months	Three months	Six months		Six months
			ended		ended		ended		ended
			June 30,		June 30,		June 30,		June 30,
			2022		2021		2022		2021
	Operating Expenses:
	Advertising, marketing, promotion	$	8,750	$	92,507	$	10,750	$	276,556
	Consulting fees (Note 10)		129,000		225,392		211,300		343,223
	Depreciation (Note 5)		5,491		5,728		10,872		11,256
	Investor relations		17,000		24,500		38,000		45,500
	Office and general		14,540		30,383		33,159		53,604
	Professional fees		9,596		4,226		12,096		7,123
	Regulatory and transfer agent fees		23,429		20,058		31,645		31,623
	Recoveries		-		(4,397)		-		(4,397)
	Rent		3,376		3,484		7,648		6,967
	Share-based compensation		231,054		231,054		-		241,808
	Travel		901		-		901		-
	Total operating expenses	(212,083)		(632,935)	(356,371)	(1,013,263)
	Interest income		2,733		4,856		3,293		7,595
	Finance income on sublease		34		419		167		930
	Accretion of lease liability discount		(67)		(838)		(332)		(1,859)
	Gain on settlement of accounts payable and accrued
	liabilities		-		-		-		31,000
	Other income on settlement of flow-through premium
	liability		-		34,128		-		43,350
	Loss and comprehensive loss for the period	$ (209,383)	$	(594,370)	$ (353,243)	$ (932,247)
	Basic and diluted loss per common share	$	(0.00)	$	(0.01)	$	(0.01)	$	(0.02)
	Weighted average number of common shares
	outstanding:
	Basic and diluted	54,376,670	50,017,387	53,616,387	47,038,910

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