Noront Resources : Q3 Financial Statements, September 30, 2021

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND

SEPTEMBER 30, 2020

(EXPRESSED IN CANADIAN DOLLARS)

Notice of No Auditor Review of Interim Financial Statements

The following unaudited condensed consolidated interim financial statements of Noront Resources Ltd. have been prepared by and are the responsibility of management of Noront Resources Ltd. Noront's independent auditor has not reviewed these unaudited condensed consolidated interim financial statements.

Noront Resources Ltd.

Consolidated Statements of Financial Position (Expressed in Canadian dollars)

(Unaudited)

			As at		As at
	Note	September 30,		December 31,
		2021		2020
Assets
Current Assets	7	$	7,250,035
Cash and cash equivalents	$	1,363,077
Taxes and other receivables			200,057		17,515
Supplies inventory			23,370		28,898
Prepaid expenses			42,854		27,017
Total Current Assets		$	7,516,316	$	1,436,507
Non-Current Assets	8		589,948
Equipment			964,849
Mineral properties	9		25,418,065		25,418,065
Investments	5		282,267		290,600
Right-of-use asset	10a		138,848		221,380
Option to lease			153,702		192,163
Total Non-Current Assets		$	26,582,830	$	27,087,057
Total Assets		$	34,099,146	$	28,523,564
Liabilities and Shareholders' Deficit
Current Liabilities	11	$	1,698,782
Accounts payable and accrued liabilities	$	546,251
Loan Facilities - due to Wyloo Canada Holdings Ltd. .	12a		-		17,844,535
Repayment option	12b		-		4,480,106
Loan Facilities - due to Franco-Nevada Corporation	12c		46,474,763		-
Short-term portion of lease obligation	10b		132,319		137,965
Total Current Liabilities		$	48,305,864	$	23,008,857
Non-Current Liabilities	13		1,905,627
Provision for environmental obligations			2,106,601
Loan Facilities - due to Franco-Nevada Corporation	12c		-		41,647,193
Long-term portion of lease obligation	10b		58,663		155,529
Total Non-Current Liabilities		$	1,964,290	$	43,909,323
Total Liabilities		$	50,270,154	$	66,918,180
Shareholders' Deficit	14b	$	307,781,933
Capital stock	$	219,495,789
Warrants	14d		215,186		639,832
Contributed surplus			41,069,898		40,373,492
Deficit			(365,238,025)		(298,903,729)
Total Shareholders' Deficit		$	(16,171,008)	$	(38,394,616)
Total Liabilities and Shareholders' Deficit		$	34,099,146	$	28,523,564

Nature of Business and Going Concern (Note 1)
Commitments and Contingencies (Note 17)
Approved on behalf of the Board of Directors:	(Signed) "Paul Parisotto"	(Signed) "John Pollesel"
	Director	Director

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

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Noront Resources Ltd.

Consolidated Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars)

(Unaudited)

			Three Months Ended		Nine Months Ended
	Note		September 30,	September 30,		September 30,			September 30,
		2021		2020		2021			2020
Expenses	19a		1,051,419			$	1,749,593
Development and exploration expenditures		$	792,437		$	2,899,798
Office and general	19b		2,113,628		621,266		3,767,002			2,269,879
Amortization	14c, e		89,451		83,394		267,930			250,181
Share-based compensation		93,106		127,537		1,231,121			662,717
Loss before finance items and other items			(3,347,604)		(1,624,634)	$	(7,015,646)		$	(6,082,575)
Interest income and other income			4,674		3,339		283,672			167,857
Finance expense			(1,195,024)		(1,257,554)		(3,592,172)			(3,776,207)
Flow-through share premium			-		255,865		-			821,965
Accretion expense	12b		(1,221,575)		(1,141,732)		(3,563,279)			(3,341,046)
Re-measurement of repayment option		(42,757,363)		(206,641)		(52,248,393)			(1,369,882)
Foreign exchange gain (loss)			(1,860,715)		1,282,767		(190,145)			(1,355,354)
Net loss		$	(50,377,607)	$	(2,688,590)	$	(66,325,963)		$	(14,935,242)
Other comprehensive income (loss)			(25,000)				8,333
Changes in fair value of investments				(12,500)				50,000
in equity securities
Comprehensive loss		$	(50,402,607)	$	(2,701,090)	$	(66,317,630)		$	(14,885,242)
Loss per share - basic and diluted	16	$	(0.11)	$	(0.01)	$	(0.15)	$		(0.04)

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

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Noront Resources Ltd.

Consolidated Statements of Changes in Equity

(Expressed in Canadian dollars, unless otherwise indicated) (Unaudited)

	Common	Capital Stock		Warrants		Contributed		Deficit		Total
	Shares						Surplus
Balance, December 31, 2019	407,059,728	$	217,826,449	$	2,038,767	$	38,196,321	$	(285,006,559)	$	(26,945,022)
Issuance of interest shares	7,978,465		1,226,703		-		-		-		1,226,703
Share-based compensation	-		-		-		662,717		-		662,717
Exercise of RSU	165,375		40,646		-		(40,646)		-		-
Expiry of warrants	-		-		(1,398,935)		1,398,935		-		-
Net loss for the period	-		-		-		-		(14,885,242)		(14,885,242)
Balance, September 30, 2020	415,203,568	$	219,093,798	$	639,832	$	40,217,327	$	(299,891,801)		(39,940,844)
	Common	Capital Stock		Warrants	Contributed		Deficit		Total
	Shares						Surplus
Balance, December 31, 2020	417,512,534	$	219,495,789	$	639,832	$	40,373,492	$	(298,903,729)	$	(38,394,616)
Issuance of interest shares (Note 12(a),14(b)	4,517,969		1,124,846		-		-		-		1,124,846
Share-based compensation (Note 14c,e)							1,231,121				1,231,121
Exercise of RSU and PSU	4,052,933		742,748		-		(742,748)		-		-
Exercise of options	885,647		376,403		-		(137,022)		-		239,381
Exercise of warrants	1,544,500		585,991		(79,591)		-		-		506,400
Private placement, net of costs	34,403,748		9,497,657		-		-		-		9,497,657
Issuance of shares (Note 12a)	96,150,000		75,958,499		-		-		-		75,958,499
Expiry of warrants	-		-		(345,055)		345,055		-		-
Net loss for the period	-		-		-		-		(66,325,963)		(66,325,963)
Other comprehensive income (loss)	-		-		-		-		(8,333)		(8,333)
Balance, September 30, 2021	559,067,331	$	307,781,933	$	215,186	$	41,069,898	$	(365,238,025)	$	(16,171,008)

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

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Noront Resources Ltd.

Consolidated Statements of Cash Flows (Expressed in Canadian dollars) (Unaudited)

			Nine Months Ended
	Note		September 30,	September 30,
		2021		2020
Operating activities		$	(66,325,963)
Net loss for the period		$	(14,935,242)
Amortization	14c, e		267,930		250,181
Share-based compensation		1,231,121		662,717
Accretion expense			3,563,279		3,341,046
Flow-through share premium			-		(821,965)
Issuance of interest shares	12b		1,124,846		1,226,703
Re-measurement of repayment option		52,248,393		1,369,882
Accrued interest on long term debt	12c		2,484,303		2,515,048
Unrealized foreign exchange (gain) loss			192,237		1,354,059
Net change in non-cash working capital:			(182,535)
Taxes and other receivables				(23,373)
Supplies inventory			5,528		63,961
Prepaid expenses			(15,837)		(72,516)
Accounts payable and accrued liabilities			1,152,503		195,603
Net cash used in operating activities		$	(4,254,195)	$	(4,873,896)
Financing activities			9,497,657
Private placement, net of costs				-
Proceeds from exercise of options			239,381		-
Proceeds from exercise of warrants			506,400		-
Lease payments			(102,512)		(94,005)
Lease inducement			-		44,901
Net cash provided by (used in) financing activities		$	10,140,926	$	(49,104)
Change in cash and cash equivalents			5,886,731		(4,923,000)
Effect of foreign exchange rates on cash and cash equivalents			227		86
Cash and cash equivalents, beginning of period			1,363,077		7,331,777
Cash and cash equivalents, end of period		$	7,250,035	$	2,408,863

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

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