North Peak Resources : Financial Statements for the Six months ended June 30, 2023

NORTH PEAK RESOURCES LTD.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying unaudited condensed interim consolidated financial statements of North Peak Resources Ltd. (the "Company") are the responsibility of management and the Board of Directors.

The unaudited condensed interim consolidated financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with the accounting policies disclosed in the notes to the unaudited condensed interim consolidated financial statements. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the statement of financial position date. In the opinion of management, the unaudited condensed interim consolidated financial statements have been prepared within acceptable limits of materiality and are in accordance with International Accounting Standard 34 - Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards appropriate in the circumstances.

Management has established processes, which are in place to provide it with sufficient knowledge to support management representations that it has exercised reasonable diligence in that (i) the unaudited condensed interim consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of, and for the periods presented by, the unaudited condensed interim consolidated financial statements and (ii) the unaudited condensed interim consolidated financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods presented by the unaudited condensed interim consolidated financial statements.

The Board of Directors is responsible for reviewing and approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the unaudited condensed interim consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

NOTICE TO READER

The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of condensed interim consolidated financial statements by an entity's auditor.

NORTH PEAK RESOURCES LTD.

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

(Unaudited)

		June 30,	December 31,
As at		2023		2022
ASSETS
Current assets	$	8,615,435
Cash	$	8,087,936
Investment		100,000		100,000
Prepaid and sundry receivable		201,768		120,161
	$	8,917,203	$	8,308,097
Exploration and evaluation assets (notes 3 and 12)		95,000		95,000
Right-of-use assets (note 4)		32,851		61,009
Total assets	$	9,045,054	$	8,464,106
LIABILITIES AND EQUITY
Current liabilities	$	150,411
Accounts payable and accrued liabilities (note 10)	$	128,139
Current portion of lease liability (note 5)		35,198		59,586
	$	185,609	$	187,725
Non-current portion of lease liability (note 5)		-		4,686
Total liabilities	$	185,609	$	192,411
Shareholders' equity		30,752,969
Share capital (note 6)			28,782,135
Contributed surplus (notes 7 and 8)		14,393,978		14,142,910
Deficit		(36,287,502)		(34,653,350)
Total shareholders' equity		8,859,445		8,271,695
Total liabilities and shareholders' equity	$	9,045,054	$	8,464,106
Nature of Operations (note 1)
Subsequent Event (note 12)

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

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NORTH PEAK RESOURCES LTD.

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

(Unaudited)

Three Months Ended		Six Months Ended
		June 30,				June 30,
	2023	2022		2023		2022
Expenses	$	5,708			$	11,332
Contractor fees	$	7,286	$	12,078
Travel		82,841		84,622		174,399		122,307
Office and general (note 10)		308,036		153,550		548,141		358,475
Professional fees (note 10)		92,055		82,583		147,439		110,929
Marketing		6,140		-		6,140		-
Exploration expenses (note 11)		519,958		515,255		631,942		1,594,364
Impairment of exploration and evaluation assets		-		2,148,890		-		2,148,890
Stock-based compensation (notes 8 and 10)		270,465		162,333		288,223		446,608
Interest income		(90,140)		(20,758)		(173,463)		(26,631)
Net loss and comprehensive loss for the period	$	(1,195,062)	$	(3,133,761)	$	(1,634,152)	$	(4,767,020)
Basic and diluted net loss per share (note 9)	$	(0.05)	$	(0.13)	$	(0.07)	$	(0.21)
Weighted average number of common shares
outstanding, basic and diluted (note 9)		23,554,681		23,834,451		23,066,915		22,850,846

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

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NORTH PEAK RESOURCES LTD.

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Expressed in Canadian Dollars)

(Unaudited)

	Share Capital			Contributed
	Number		Amount		Surplus	Deficit		Total
Balance, December 31, 2021	21,334,455	$	27,674,324	$	11,340,951	$ (30,180,902)	$	8,834,373
Issued on private placement	2,499,996		5,750,000		-	-		5,750,000
Costs of issue	-		(252,909)		-	-		(252,909)
Warrants issued	-		(2,143,017)		2,143,017	-		-
Stock-based compensation	-		-		446,608	-		446,608
Net loss for the period	-		-		-	(4,767,020)		(4,767,020)
Balance, June 30, 2022	23,834,451		31,028,398		13,930,576	(34,947,922)		10,011,052
Balance, December 31, 2022	22,584,451		28,782,135		14,142,910	(34,653,350)		8,271,695
Issued on private placement	2,272,727		2,000,000		-	-		2,000,000
Costs of issue	-		(107,571)		-	-		(107,571)
Issued on exercise of stock options	75,000		78,405		(37,155)	-		41,250
Stock-based compensation	-		-		288,223	-		288,223
Net loss for the period	-		-		-	(1,634,152)		(1,634,152)
Balance, June 30, 2023	24,932,178	$	30,752,969	$	14,393,978	$ (36,287,502)	$	8,859,445

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

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