CONDENSED INTERIM FINANCIAL STATEMENTS OF

PROBE METALS INC.

FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 30, 2021

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

NOTICE TO READER

The accompanying unaudited condensed interim financial statements of Probe Metals Inc. (the "Company") have been prepared by, and are the responsibility of management. The unaudited condensed interim financial statements have not been reviewed by the Company's auditors.

Probe Metals Inc.

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

(Unaudited)

As at

As at

September 30,

December 31,

2021

2020

ASSETS

Current assets

$

25,375,655

Cash

$

30,739,058

Trade accounts receivable and other receivables (note 3)

1,102,656

827,983

Marketable securities (note 4)

3,318,935

3,823,240

Prepaid expenses

104,511

105,252

Income tax receivable

-

862,322

Total current assets

29,901,757

36,357,855

Non-current assets

413,050

Reclamation bonds (note 5)

413,050

Property and equipment (note 6)

523,182

588,870

Rights-of-use asset (note 7)

136,940

186,239

Total non-current assets

1,073,172

1,188,159

Total assets

$

30,974,929

$

37,546,014

LIABILITIES AND EQUITY

Current liabilities

$

613,891

Amounts payable and other liabilities (notes 8 and 18)

$

981,051

Current portion of lease liability (note 9)

82,407

60,196

Flow-through share liability (note 10)

841,352

3,954,139

Total current liabilities

1,537,650

4,995,386

Non-current liabilities

138,431

Lease liability (note 9)

203,553

Restoration liabilities (note 5)

997,068

889,239

Total non-current liabilities

1,135,499

1,092,792

Total liabilities

2,673,149

6,088,178

Equity

114,436,399

Share capital (note 11)

106,772,946

Warrants (note 12)

2,275,965

2,281,758

Contributed surplus (notes 13 and 14)

6,453,181

9,222,400

Accumulated deficit

(94,863,765)

(86,819,268)

Total equity

28,301,780

31,457,836

Total liabilities and equity

$

30,974,929

$

37,546,014

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

Nature of operations (note 1)

Commitments (note 19)

Subsequent event (note 21)

- 1 -

Probe Metals Inc.

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

(Unaudited)

Three months ended

Nine months ended

September 30,

September 30,

2021

2020

2021

2020

Operating expenses

$

3,244,803

$

8,276,072

Exploration and evaluation expenditures (note 16)

$

3,943,916

$

11,512,899

General and administrative expenses (note 17)

1,297,392

1,146,514

3,803,659

4,203,591

Operating loss before interest and other income,

accretion expense, premium on flow-through shares,

realized (loss) gain on sale of marketable securities,

and unrealized (loss) gain on marketable securities

(4,542,195)

(5,090,430)

(12,079,731)

(15,716,490)

Interest and other income

53,712

45,192

140,215

276,880

Accretion expense (notes 5 and 9)

(28,137)

(31,906)

(88,069)

(96,215)

Premium on flow-through shares (note 10)

1,091,259

1,718,691

3,112,787

3,966,762

Realized (loss) gain on sale of marketable

-

2,871,131

securities (note 4)

(9,825)

(9,825)

Unrealized (loss) gain on marketable

(571,125)

(2,224,457)

securities (note 4)

609,418

713,578

Loss and comprehensive loss for the period

$

(3,996,486)

$

(2,758,860)

$

(8,268,124)

$(10,865,310)

Basic and diluted loss per share (note 15)

$

(0.03)

$

(0.02)

$

(0.06)

$

(0.09)

Weighted average number of common shares

outstanding - basic and diluted

131,173,287

125,791,559

130,547,750

125,649,934

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

- 2 -

Probe Metals Inc.

Condensed Interim Statements of Cash Flows (Expressed in Canadian Dollars)

(Unaudited)

Nine months ended

September 30,

2021

2020

Operating activities:

$

(8,268,124)

Net loss for the period

$ (10,865,310)

Adjustments for:

1,890,997

Share-based payments (notes 13 and 14)

2,518,131

Depreciation (notes 6 and 7)

118,766

106,241

Accrued interest receivable

12,369

13,843

Realized (gain) loss on sale of marketable securities (note 4)

(2,871,131)

9,825

Shares issued to acquire mineral property (note 16(i)(iii)(iv))

55,976

1,632,847

Unrealized loss (gain) on marketable securities (note 4)

2,224,457

(713,578)

Premium on flow-through share (note 10)

(3,112,787)

(3,966,762)

Accretion expense (notes 5 and 9)

88,069

96,215

Restoration fees (note 5)

98,244

874,548

RSUs reclassified to liability (note 14)

(873,705)

-

Changes in non-cash working capital items:

(287,042)

Trade accounts receivable and other receivables

(564,010)

Prepaid expenses

741

(19,822)

Income tax receivable

862,322

68,598

Amounts payable and other liabilities

(367,160)

467,474

Net cash used in operating activities

(10,428,008)

(10,341,760)

Investing activities:

(3,264,551)

Marketable securities acquisition through statutory plan of arrangement (note 4(i))

-

Proceeds from sale of marketable securities

4,415,530

56,775

Purchase of property and equipment (note 6)

(3,779)

(145,042)

Purchase of reclamation bonds

-

(389,358)

Net cash provided by (used in) investing activities

1,147,200

(477,625)

Financing activities:

-

Share issue costs

(34,963)

Exercise of warrants

33,800

-

Exercise of stock options

4,005,000

846,000

Lease payments (note 9)

(121,395)

(119,025)

Net cash provided by financing activities

3,917,405

692,012

Net change in cash

(5,363,403)

(10,127,373)

Cash, beginning of period

30,739,058

34,697,148

Cash, end of period

$

25,375,655

$ 24,569,775

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

- 3 -

Probe Metals Inc.

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

(Unaudited)

Equity attributable to shareholders

Share

Contributed

Accumulated

capital

Warrants

surplus

deficit

Total

Balance, December 31, 2019

$

98,195,843

$

3,689,463

$

7,084,983

$ (74,768,684)

$

34,201,605

Shares issued to acquire mineral property (note 16(i)(iii)(iv))

1,632,847

-

-

-

1,632,847

Share issue costs

(34,963)

-

-

-

(34,963)

RSUs vested (note 14)

29,822

-

(29,822)

-

-

Exercise of stock options

1,618,563

-

(772,563)

-

846,000

Warrants expired

-

(2,481,664)

-

2,481,664

-

Share-based payments (notes 13 and 14)

-

-

2,518,131

-

2,518,131

Loss and comprehensive loss

-

-

-

(10,865,310)

(10,865,310)

Balance, September 30, 2020

$101,442,112

$

1,207,799

$

8,800,729

$ (83,152,330)

$

28,298,310

Balance, December 31, 2020

$106,772,946

$

2,281,758

$

9,222,400

$ (86,819,268)

$

31,457,836

Shares issued to acquire mineral property (note 16(iv))

55,976

-

-

-

55,976

RSUs vested (note 14)

378,810

-

(378,810)

-

-

RSUs reclassified to liability (note 14)

-

-

(873,705)

-

(873,705)

Exercise of warrants

39,593

(5,793)

-

-

33,800

Exercise of stock options

7,189,074

-

(3,184,074)

-

4,005,000

Stock options expired

-

-

(223,627)

223,627

-

Share-based payments (notes 13 and 14)

-

-

1,890,997

-

1,890,997

Loss and comprehensive loss

-

-

-

(8,268,124)

(8,268,124)

Balance, September 30, 2021

$114,436,399

$

2,275,965

$

6,453,181

$ (94,863,765)

$

28,301,780

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

- 4 -

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Probe Metals Inc. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 12:20:03 UTC.