Nickel Creek Platinum : Q4 2020 Audited Financial Statements

TSX: NCP | OTCQB: NCPCF

NICKEL CREEK PLATINUM CORP.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in Canadian Dollars)

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The consolidated financial statements for the year ended December 31, 2020, and the notes thereto, have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board 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 23, 2021

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, 2020 and 2019, 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).

What we have audited

The Company's consolidated financial statements comprise:

• ● the consolidated statements of financial position as at December 31, 2020 and 2019;

• ● 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, which include significant accounting policies 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 in 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 2600, Toronto, Ontario, Canada M5J 0B2

T: [phone], F: [phone]

"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, 2020. 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 matter described below to be the key audit matter to be communicated in our report.

Key audit matter

How our audit addressed the key audit matter

Assessment of impairment indicators of exploration and evaluation assets

Refer to note 3d - Significant accounting policies, note 4 - Significant accounting judgments and estimates and note 9 - Exploration and evaluation assets to the consolidated financial statements

The carrying value of the Company's exploration and evaluation assets was $27.6 million as at December 31, 2020. The carrying value of exploration and evaluation assets are assessed by management at each reporting period for indicators of impairment and impairment reversals. The assessment of indicators of impairment and impairment reversals requires management to apply judgment and involves reviewing factors such as (i) the inability to undertake feasibility studies and desktop studies; (ii) assessing the negative results from these feasibility studies; (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 impairment reversal exists, an estimate of the recoverable amount is made.

We considered this a key audit matter due to the significance of the exploration and evaluationOur approach to addressing the matter included the following procedures, among others:

•  Assessed the judgment made by management in determining the indicators of impairment and impairment reversals, 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 whether exploration and evaluation work is discontinued in an area for which commercially viable reserve quantities have not been discovered.

  •  Read studies to assess whether the results from the studies were negative, considering 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, based on the evidence obtained in other areas of the audit.