Pucara Gold : Q3 FS

Pucara Gold Ltd.

(An Exploration Stage Company)

Interim Condensed Consolidated Financial Statements

(expressed in Canadian dollars)

September 2021

(Unaudited - Prepared by Management)

Pucara Gold Ltd.

2110 - 650 West Georgia Street

Vancouver, BC V6B 4N8

Reader's Note:

These unaudited interim condensed consolidated financial statements have been prepared by management and have not

been reviewed by the Company's auditor.

Pucara Gold Ltd.

(An Exploration Stage Company)

Interim Condensed Consolidated Statements of Financial Position

(Expressed in Canadian dollars) (Unaudited - Prepared by Management)

		September 30,	December 31,
	Note		2021		2020
ASSETS
Current assets
Cash		$	3,603,774	$	6,058,585
Receivables			48,958		57,628
Prepaid expenses			66,186		119,880
Total current assets			3,718,918		6,236,093
Non‐current assets	3
Exploration and evaluation assets		188,488		418,894
Equipment			85,266		124,839
Right of use asset			3,368		36,542
Total non‐current assets			277,122		580,275
TOTAL ASSETS		$	3,966,040	$	6,816,368
LIABILITIES
Current liabilities	5
Accounts payable and accrued liabilities	$	241,505	$	744,572
Lease liability			6,904		36,646
TOTAL LIABILITIES			248,409		781,218
EQUITY
Share capital			18,705,894		18,698,544
Share‐based payment reserve			1,631,546		1,464,862
Accumulated other comprehensive income			76,749		118,773
Deficit			(16,666,558)		(14,247,029)
TOTAL EQUITY			3,747,631		6,035,150
TOTAL LIABILITIES AND EQUITY		$	3,996,040	$	6,816,368

Nature of operations

Continuance of operations and going concern

Approved on behalf of the Board of Directors

"J Stevens Zuker"

Director

1

0 (C)

"Gordon J. Fretwell"

Director

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

Pucara Gold Ltd.

(An Exploration Stage Company)

Interim Condensed Consolidated Statements of Loss and Comprehensive Loss

(Expressed in Canadian dollars) (Unaudited - Prepared by Management)

		Three Months Ended September	Nine Months Ended September
		30,				30,
	Note	2021	2020		2021		2020
Exploration expenditures	3	$ 321,965	$	342,496	$	1,219,729		$	767,177
General and administration	5
Accounting and legal	64,517		116,302		208,882			189,741
Accretion		351		1,384		1,523			5,756
Amortization		9,941		10,486		29,246			57,089
Office and miscellaneous		22,061		28,168		72,882			47,122
Professional Fees		‐		‐		‐			‐
Investor relations	5	76,831		8,240		260,157			51,323
Management and consulting fees	152,349		217,133		495,712			456,225
Share‐based payments	5	36,552		191,721		171,034			245,397
Travel		5,625		1,898		25,948			7,619
Total general and administrative expenses		368,227		575,332		1,265,384			1,060,272
Loss before other items		690,192		917,828		2,485,113			1,827,449
Other items
Foreign exchange (gain) loss		(42,533)		9,155		37,869			36,196
Interest income		(1,306)		(5,081)		(4,443)			(9,362)
Other income	3	(3,864)		‐		(99,010)			(91,907)
Listing Expense	‐		1,404,412		‐			1,404,412
Net loss		642,489		2,326,314		2,419,529			3,166,788
Other comprehensive (income) loss		1,830		11,430		42,024			(10,336)
Total comprehensive loss		644,319	$	2,337,744	$	2,461,553	$		3,156,452
Loss per common share
Basic and fully diluted		$ 0.01		$ 0.07		$ 0.04		$	0.09
Weighted average number of common		62,587,960				62,580,817
shares outstanding‐ Basic and diluted		34,234,460			34,234,460

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

Pucara Gold Ltd.

(An Exploration Stage Company)

Interim Condensed Consolidated Statements of Changes in Equity September 30, 2021

(Expressed in Canadian dollars) (Unaudited - Prepared by Management)

			Share‐based	Accumulated other
			payment	comprehensive
	Share capital	reserve	income (loss)	Deficit	Total
	Number of shares	$	$	$	$	$
Balance at December 31, 2019	34,234,460	7,844,030	1,030,960	89,152	(8,302,191)	661,951
Net loss for the period	‐	‐	‐	-	(3,166,788)	(3,166,788)
Share‐based payments	‐	‐	245,397	‐	‐	245,397
Consideration from reverse acquisition	3,100,000	1,240,000	21,750	‐	‐	1,261,750
Finders' fees‐shares	810,000	‐	‐	‐	‐	‐
Finders' fees‐cash	‐	(116,564)	116,564	‐	‐	‐
Finders' fees‐warrants	‐	(6,000)	‐	‐	‐	(6,000)
Conversion of debenture	2,500,000	1,000,000	‐	‐	‐	1,000,000
Concurrent financing	21,250,000	8,500,000	‐	‐	‐	8,500,000
Other comprehensive income	‐	‐	‐	10,336	‐	10,336
Balance at September 30, 2020	61,894,460	18,461,466	1,414,671	99,488	(11,468,979)	8,506,646
Balance at December 31, 2020	62,576,960	18,698,544	1,464,862	118,773	(14,247,029)	6,035,150
Net loss for the period	‐	‐	‐	‐	(2,419,529)	(2,419,529)
Share‐based payments	‐	‐	171,034	‐	‐	171,034
Shares issued from exercise of options	15,000	7,350	(4,350)	‐	‐	3,000
Other comprehensive loss	‐	‐	‐	(42,024)	‐	(42,024)
Balance at September 30, 2021	62,591,960	18,705,894	1,631,546	76,749	(16,666,558)	3,747,631

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

Pucara Gold Ltd.

(An Exploration Stage Company)

Interim condensed Consolidated Statements of Cash Flows (Expressed in Canadian dollars)

(Unaudited - Prepared by Management)

		Nine Months Ended	Nine Months Ended
		September 30,	September 30,
		2021	2020
	Operating activities	$ (2,419,529)
	Net loss	$ (3,166,788)
	Items not affecting cash	97,283
	Impairment of exploration and evaluation assets	48,670
	Accretion	1,523	5,756
	Amortization of right‐of‐use asset	29,246	57,089
	Depreciation of equipment	26,039	28,720
	Foreign exchange (gain) loss	3,344	18,180
	Listing expense	‐	1,250,774
	Share‐based payments	171,034	245,397
	Change in non‐cash operating working capital	(2,091,060)	(1,512,202)
	62,364
	Receivables and prepared expenses	(10,914)
	Accounts payable and accrued liabilities	(417,474)	145,322
	Cash used in operating activities	(2,446,170)	(1,377,794)
	Investing activities	(2,299)	(10,779)
	Payments for exploration and evaluation assets
	Short term investment	‐	400,000
	Cash Acquired from reverse acquisition	‐	4,800
	Payments for equipment	‐	(15,156)
	Cash provided by (used in) investing activities	(2,299)	378,865
	Financing activities	‐
	Increase in note payable‐Convertible notes	500,000
	Proceeds from private placements	‐	‐
	Purchase of short‐term investments	‐	(400,000)
	Proceeds from exercise of stock options	3,000	‐
	Purchase of short‐term investments	‐	‐
	Proceeds from Concurrent Financing	‐	8,500,000
	Lease payments	(30,681)	(62,810)
	Cash provided by (used in) financing activities	(27,681)	8,537,190
	Effect of exchange rate changes on cash	21,339	8,187
	Increase (decrease) in cash	(2,454,811)	7,546,448
	Cash ‐ beginning of period	6,058,585	911,539
	Cash ‐ end of period	$ 3,603,774	$ 8,457,987
	Supplemental cash flow information
	Purchase of short‐term investments	4,443	8,673
	Financing activity included within accounts payable	‐	(6,000)

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