New Pacific Metals : Jun 30, 2021 Fourth Quarter and Year-End Consolidated Financial Statements

CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2021 and 2020

(Expressed in US Dollars)

Deloitte LLP

939 Granville Street

Vancouver, BC V6Z1L3

Canada

Tel: [phone]

Fax: [phone]

www.deloitte.ca

Report of Independent Registered

Public Accounting Firm

To the Shareholders and the Board of Directors of New Pacific Metals Corp.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of New Pacific Metals Corp. and subsidiaries (the "Company") as of June 30, 2021 and 2020 and July 1, 2019, the related consolidated statements of (loss) income, comprehensive (loss) income, changes in equity, and cash flows, for each of the two years in the period ended June 30, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2021 and 2020 and July 1, 2019, and its financial performance and its cash flows for each of the two years in the period ended June 30, 2021, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles

used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte LLP

Chartered Professional Accountants

Vancouver, Canada

September 16, 2021

We have served as the Company's auditor since 2004.

New Pacific Metals Corp.

Consolidated Statements of Financial Position

(Expressed in US dollars)

	Notes		June 30, 2021		June 30, 2020		July 1, 2019
ASSETS					(restated)*		(restated)*
Current Assets
Cash		$	46,441,482	$	29,824,146	$	21,280,631
Short-term investments	4		143,914		15,140,719		8,361,655
Receivables			343,608		303,488		198,364
Deposits and prepayments			523,141		163,500		108,787
Assets held for distribution	3		-		8,695,312		-
			47,452,145		54,127,165		29,949,437
Non-current Assets
Reclamation deposits			-		-		11,519
Other tax receivable	5		2,216,392		2,100,430		1,375,956
Equity investments	6		496,526		4,111,822		3,905,320
Plant and equipment	8		1,118,639		1,127,034		1,001,606
Mineral property interests	9		75,535,422		69,745,800		58,696,480
TOTAL ASSETS		$	126,819,124	$	131,212,251	$	94,940,318
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	10	$	1,044,189	$	1,154,593	$	1,238,944
Payable for mineral property acquisition			-		193,073		301,582
Due to a related party	11		50,378		62,182		68,151
Liabilities held for distribution	3		-		89,653		-
			1,094,567		1,499,501		1,608,677
Non-current liabilities
Payable for mineral property acquisition			-		-		201,054
Total Liabilities			1,094,567		1,499,501		1,809,731
Equity
Share capital	12		149,629,543		145,904,310		114,621,944
Share-based payment reserve			16,564,197		16,813,906		15,265,578
Accumulated other comprehensive income			13,641,379		7,669,888		9,797,021
Deficit			(54,106,972)		(40,633,984)		(46,541,710)
Total equity attributable to the equity holders of the Company		125,728,147		129,754,120		93,142,833
Non-controlling interests	13		(3,590)		(41,370)		(12,246)
Total Equity			125,724,557		129,712,750		93,130,587
TOTAL LIABILITIES AND EQUITY		$	126,819,124	$	131,212,251	$	94,940,318

*Restated for change in presentation currency (note 2(c))

Approved on behalf of the Board:

(Signed) David Kong

Director

(Signed) Mark Cruise

Director

See accompanying notes to the consolidated financial statements

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New Pacific Metals Corp.

Consolidated Statements of (Loss) Income

(Expressed in US dollars)

			Year Ended June 30,
	Notes		2021		2020
					(restated)*
Operating expense
Project evaluation and corporate development		$	(822,864)	$	(206,060)
Depreciation			(44,000)		(11,995)
Filing and listing			(393,814)		(128,142)
Investor relations			(337,714)		(536,902)
Professional fees			(498,207)		(303,031)
Salaries and benefits			(1,688,687)		(1,324,699)
Office and administration			(678,529)		(513,030)
Share-based compensation	12(b)		(1,482,170)		(1,584,730)
			(5,945,985)		(4,608,589)
Other (expense) income
Income from investments	7	$	395,543	$	1,311,921
Loss on disposal of plant and equipment	8		(1,944)		-
Impairment recovery of mineral property interests	9		-		8,724,915
Foreign exchange (loss) gain			(1,021,628)		465,021
Other expense			(360)		-
			(628,389)		10,501,857
Net (loss) income		$	(6,574,374)	$	5,893,268
Attributable to:
Equity holders of the Company		$	(6,566,440)	$	5,907,726
Non-controlling interests	13		(7,934)		(14,458)
Net (loss) income		$	(6,574,374)	$	5,893,268
(Loss) earnings per share attributable to the equity holders of the Company
Basic (loss) earnings per share	12(d)	$	(0.04)	$	0.04
Diluted (loss) earnings per share	12(d)	$	(0.04)	$	0.04
Weighted average number of common shares - basic	12(d)		153,294,454		146,254,726
Weighted average number of common shares - diluted	12(d)		153,294,454		150,688,553

*Restated for change in presentation currency (note 2(c))

See accompanying notes to the consolidated financial statements

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