Nickel Creek Platinum : Q4 2023 Audited Financial Statements

TSX: NCP | OTCQB: NCPCF

NICKEL CREEK PLATINUM CORP.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 -

(Expressed in Canadian Dollars)

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The consolidated financial statements for the year ended December 31, 2023, and the notes thereto, have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards) and are the responsibility of the management of Nickel Creek Platinum Corp. (the "Company"). The Financial Statements, where necessary, include amounts which are based on the best estimates and judgement of management.

The Company maintains a system of internal controls designed to provide reasonable assurance that the Company's assets are safeguarded, transactions are executed and recorded in accordance with management's authorization, proper records are maintained and relevant and reliable financial information is produced. These controls include maintaining quality standards in hiring and training of employees, policies and procedures manuals, a corporate code of conduct and ethics and ensuring that there is proper accountability for performance within appropriate and well-defined areas of responsibility. The system of internal controls is further supported by a compliance function, which is designed to ensure that the Company and its employees comply with securities legislation and conflict of interest rules.

The Board of Directors is responsible for overseeing management's performance of its responsibilities for financial reporting and internal control. The Audit Committee, which is composed of non-executive directors, meets with management as well as the external auditors to ensure that management is properly fulfilling its financial reporting responsibilities to the Board who approve the Financial Statements. The external auditors have full and unrestricted access to the Audit Committee to discuss the scope of their audits and the adequacy of the system of internal controls, and to review financial reporting issues.

The external auditor, PricewaterhouseCoopers LLP, has been appointed by the Company's shareholders to render their opinion on these consolidated financial statements and their report is included herein.

"/s/ "Stuart Harshaw"	"/s/ "Joe Romagnolo"
Stuart Harshaw, President and Chief Executive	Joe Romagnolo, Sr. Vice-President and Chief
Officer	Financial Officer
March 25, 2024

Independent auditor's report

To the Shareholders of Nickel Creek Platinum Corp.

Our opinion

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Nickel Creek Platinum Corp. and its subsidiaries (together, the Company) as at December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).

What we have audited

The Company's consolidated financial statements comprise:

•  the consolidated statements of financial position as at December 31, 2023 and 2022;

•  the consolidated statements of loss and comprehensive loss for the years then ended;

•  the consolidated statements of cash flows for the years then ended;

•  the consolidated statements of changes in shareholders' equity for the years then ended; and

•  the notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information.

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

Material uncertainty related to going concern

We draw attention to note 1 to the consolidated financial statements, which describes events or conditions that indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

PricewaterhouseCoopers LLP

PwC Tower, 18 York Street, Suite 2500, Toronto, Ontario, Canada M5J 0B2

T.: [phone], F.: [phone], Fax to mail:[e-mail]

"PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2023. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matter

Assessment of indicators of impairment and impairment reversal of exploration and evaluation assets

Refer to note 3 - Material accounting policy information, note 4 - Significant accounting judgments and estimates and note 10 - Exploration and evaluation assets to the consolidated financial statements.

The carrying value of the Company's exploration and evaluation assets was $33.36 million as at December 31, 2023. The carrying values of exploration and evaluation assets are reviewed each reporting period or upon the occurrence of events or changes in circumstances indicating that the carrying values of assets may not be recoverable and or if an impairment reversal is required. The evaluation of indicators of impairment and impairment reversal requires management to apply judgment and involves reviewing factors such as (i) the ability and intention to undertake feasibility studies or desktop studies, (ii) assessing the results from these studies including the recently completed Nickel Shäw Project pre-feasibility study dated September 20, 2023, (iii) whether exploration and evaluation work is discontinued in an area for which commercially viable reserve quantities have not been discovered, (iv) whether no further substantive expenditures are planned or budgeted, and (v) the continued permitting of the projects, and title to mineral properties in which the Company has interest. Where an indicator of impairment or

How our audit addressed the key audit matter

Our approach to addressing the matter included the following procedures, among others:

•  Assessed the judgments made by management in determining the indicators of impairment and impairment reversal, which included the following:

  • - Obtained the permits and titles for a sample of the projects and mineral properties to assess (i) the right to explore the area and (ii) expiration dates.

  • - Read the Board of Directors' meeting minutes and obtained budget approvals as evidence of planned or budgeted further substantive expenditures, to assess the ability to undertake feasibility or desktop studies and whether exploration and evaluation work is discontinued in an area for which commercially viable reserve quantities have not been discovered.

  • - Read studies, including the recently completed Nickel Shäw Project pre-feasibility study dated September 20, 2023, to assess its results and considered whether they have not led to the discovery of commercially viable reserve quantities.

  • - Assessed whether there are other changes in circumstances indicating that the carrying value of the exploration and evaluation assets may not be recoverable,

Key audit matter

How our audit addressed the key audit matter

impairment reversal exists, an estimate of the recoverable amount is made.

based on the evidence obtained in other

areas of the audit.

We considered this a key audit matter due to the significance of the exploration and evaluation assets, the judgments made by management in its assessment of indicators of impairment or impairment reversal related to the exploration and evaluation assets and the high degree of subjectivity in performing procedures related to the judgments applied by management.

Other information

Management is responsible for the other information. The other information comprises the Management's Discussion and Analysis.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

•  Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

•  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

•  Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

•  Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

•  Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial

statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Kristine Doherty.

/s/PricewaterhouseCoopers LLP

Chartered Professional Accountants, Licensed Public Accountants

Toronto, Ontario

March 25, 2024

Consolidated Statements of Financial Position

(Expressed in Canadian dollars)

Note

ASSETS

Current Assets

Cash and cash equivalents Amounts receivable Prepaid expenses

5 6

Non-Current Assets

Equipment, net Right-of-use assets, net Exploration and evaluation assets

8 9 10

TOTAL ASSETSLIABILITIES Current Liabilities

Accounts payable and other liabilities Lease obligations

11 12

Non-Current Liabilities

Lease obligations

Reclamation provision TOTAL LIABILITIES

12 13

SHAREHOLDERS' EQUITY

Share capital

Equity reserves Deficit

14

TOTAL LIABILITIES AND EQUITY

Going Concern (Note 1)

Commitments (Note 22) and Contingencies (Note 23)

Subsequent Event (Note 24)

December 31, 2023

$

468,08525,23675,116568,43792,51666,57333,363,07833,522,167

$

$

34,090,604

$

$

298,93825,942

$

324,880

38,839540,000903,719

145,725,79017,694,744(130,233,649)

33,186,885

$

34,090,604

$

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

December 31, 2022

1,816,994 76,505 132,844 2,026,343

115,645

110,884

32,254,080

32,480,609

34,506,952

355,177 101,617 456,794 17,319 528,000 1,002,113

144,357,343

16,995,424

(127,847,928)

33,504,839

34,506,952

Consolidated Statements of Loss and Comprehensive Loss

(Expressed in Canadian dollars, except share amounts)

2022
Consulting and professional fees	$	224,537
Depreciation	8, 9	88,815	92,223
Foreign exchange loss (income)	2,336	(69)
Insurance	67,672	67,547
Investor relations and business development	236,961	236,103
Office, regulatory and other	257,521	277,547
Salaries and wages	15	644,794	647,400
Share-based compensation	14(d)	652,619	480,270
General and administrative expenses	2,231,307	2,025,558
Exploration and evaluation expenses	16	204,539	169,969
Loss before non-operating items	(2,435,846)	(2,195,527)
OTHER INCOME (EXPENSE)
Flow-through share premium	11	-	279,668
Gain on marketable securities	7	-	216,478
Interest expense on right-of-use assets	(5,500)	(6,114)
Interest income	55,625	58,022
NET LOSS AND COMPREHENSIVE LOSS	$	(1,647,473)
NET LOSS PER COMMON SHARE,
BASIC AND DILUTED	$	(0.00)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING	419,192,625

OPERATING EXPENSES

Note

2023

280,589

$

(2,385,721)

$

(0.01)

$

454,941,014

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

Consolidated Statements of Cash Flows

(Expressed in Canadian dollars)

Note	2023	2022
OPERATING ACTIVITIES
Net loss for the year	$	(2,385,721)$	(1,647,473)
Add (deduct) items not affecting cash
Depreciation	8, 9	113,603	122,792
Share-based compensation	14(d)	709,320	517,734
Unrealized foreign exchange loss (gain)	284	(508)
Gain on marketable securities	7	-	(216,478)
Changes in non-cash working capital balances	19	124,683	(11,307)
Cash used in operating activities	(1,437,831)	(1,235,240)
INVESTING ACTIVITIES
Exploration and evaluation expenditures	(1,164,423)	(3,229,693)
Proceeds on sale of marketable securities	7	-	683,378
Cash used in investing activities	(1,164,423)	(2,546,315)
FINANCING ACTIVITIES
Exercise of stock options	-	96,696
Exercise of warrants	-	1,000,864
Proceeds from share issuance, net of issue costs	14	1,358,447	2,397,935
Principal elements of lease payments	(104,818)	(98,373)
Cash provided by financing activities	1,253,629	3,397,122
Effect of foreign exchange rate changes on cash and cash
(284)	508
equivalents
Decrease in cash and cash equivalents, net	(1,348,909)	(383,925)
CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR	1,816,994	2,200,919
CASH AND CASH EQUIVALENTS, END OF THE YEAR	$	468,085$	1,816,994

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