Nevada Zinc : NZN CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

NEVADA ZINC CORPORATION

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS

THREE AND SIX MONTHS ENDED

JUNE 30, 2022

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

Notice to Reader

The accompanying unaudited condensed interim consolidated financial statements of Nevada Zinc Corporation (the "Company") have been prepared by and are the responsibility of management. The unaudited condensed interim consolidated financial statements have not been reviewed by the Company's auditors.

Nevada Zinc Corporation

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

(Unaudited)

		As at		As at
		June 30,	December 31,
		2022		2021
ASSETS
Current assets	$	283,386
Cash and cash equivalents (note 4)	$	31,664
Marketable securities (note 5)		132		264
Amounts receivable and other assets (note 6)		7,278		4,931
Non-current assets		290,796		36,859
	21,373
Reclamation bond			21,373
Total assets	$	312,169	$	58,232
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
Current liabilities	$	407,420
Amounts payable and other liabilities (notes 7 and 12)	$	445,291
Amounts payable to related party (note 12)		65,227		397,463
Total liabilities		472,647		842,754
Shareholders' deficiency		13,662,284
Share capital (note 8)			12,692,487
Reserves (notes 10 and 11)		391,225		667,250
Deficit		(14,213,987)		(14,144,259)
Total shareholders' deficiency		(160,478)		(784,522)
Total liabilities and shareholders' deficiency	$	312,169	$	58,232

Nature of operations and going concern (note 1)

Contingencies (note 16)

Approved on behalf of the Board: (Signed) "Eugene Lee", Director

(Signed) "Donald Christie", Director

The accompanying notes are an integral part of these unaudited consolidated financial statements.

- 1 -

Nevada Zinc Corporation

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

(Unaudited)

			Three Months Ended		Six Months Ended
			June 30,		June 30,
			2022		2021		2022		2021
Operatin	expenses	$	173,702			$	238,725
Exploration, acquisition and development costs (note 15)	$	208,810	$	249,863
General and administrative (note 13)		130,386		110,573		263,051		386,654
Operatin	loss before the follo in items		(304,088)		(319,383)		(501,776)		(636,517)
Gain on settlement of debt		-		-		-		11,449
Unrealized (loss) gain on marketable securities (note 5)		(60)		(66)		(132)		114
Net and comprehensive loss for the period	$	(304,148)	$	(319,449)	$	(501,908)	$	(624,954)
Basic and diluted loss per share (note 9)	$	(0 00)	$	(0.00)	$	(0 01)	$	(0.01)
ei hted avera e number of common shares
outstandin - basic and diluted		99,509,575		84,311,762		95,035,343		82,722,268

The accompanying notes are an integral part of these unaudited consolidated financial statements.

- 2 -

Nevada Zinc Corporation

Condensed Interim Consolidated Statements of Cash Flo	s
(Expressed in Canadian Dollars)
(Unaudited)
					Six Months Ended
					June 30,
					2022		2021
Operatin	activities		$	(501,908)
Net loss for the period		$	(624,954)
Adjustments for:				132
Unrealized loss (gain) on marketable securities (note 5)			(114)
Share-based payments			-		175,500
Gain on settlement of debt			-		(11,449)
Non-cash working capital items:			(2,347)
Amounts receivable and other assets			(21,193)
Amounts payable and other liabilities		19,729		(21,907)
Amounts payable to related party		-		15,000
Net cash and cash e uivalents used in operatin activities		(484,394)		(489,117)
Financin	activities			736,116
Issuance of common shares (net of issuance costs) (note 8(b))			750,000
Net cash and cash e uivalents provided by financin activities		736,116		750,000
Net chan	e in cash and cash e	uivalents		251,722		260,883
Cash and cash e	uivalents, be	innin of period		31,664		8,001
Cash and cash e	uivalents, end of period	$	283,386	$	268,884
Cash and cash e	uivalents consist of:	$	282,935
Cash				$	268,433
Cash equivalents			451		451
				$	283,386	$	268,884

The accompanying notes are an integral part of these unaudited consolidated financial statements.

- 3 -

Nevada Zinc Corporation

Condensed Interim Consolidated Statements of Chan	es in Shareholders' Deficiency
(Expressed in Canadian Dollars)
(Unaudited)
	Share
	capital		Reserves	Deficit		Total
Balance, December 31, 2020	$11,942,487	$	1,376,811	$ (14,078,657)	$	(759,359)
Issuance of common shares (note 8(b)(i))	750,000		-	-		750,000
Share-based payments (note 11(i))	-		175,500	-		175,500
Expiry of stock options	-		(571,126)	571,126		-
Net loss for the period	-		-	(624,954)		(624,954)
Balance, June 30, 2021	$12,692,487	$	981,185	$ (14,132,485)	$	(458,813)
Balance, December 31, 2021	$12,692,487	$	667,250	$ (14,144,259)	$	(784,522)
Private placement financing (net of issuance costs) (note 8(b)(ii))	736,116		-	-		736,116
Issuance of common shares for settlement of debt (note 8(b)(iii))	389,836		-	-		389,836
Expiry of stock options	-		(432,180)	432,180		-
arrants issued under unit offering (note 8(b)(ii))	(156,155)		156,155	-		-
Net loss for the period	-		-	(501,908)		(501,908)
Balance, June 30, 2022	$13,662,284	$	391,225	$ (14,213,987)	$	(160,478)

The accompanying notes are an integral part of these unaudited consolidated financial statements. - 4 -