Purepoint Uranium : Audited Financial Statement - 2023

Financial Statements

December 31, 2023 and 2022

(Expressed in Canadian Dollars)

Independent Auditor's Report

To the Shareholders of Purepoint Uranium Group Inc.:

Opinion

We have audited the financial statements of Purepoint Uranium Group Inc. (the "Company"), which comprise the

statements of financial position as at December 31, 2023 and December 31, 2022, and the statements of loss and

comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the financial

statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of

the Company as at December 31, 2023 and December 31, 2022, and its financial performance and its cash flows for

the years then ended in accordance with International Financial Reporting Standards.

Basis for Opinion

We conducted our audits 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 are independent of the Company in accordance with the ethical

requirements that are relevant to our audits of the financial statements in Canada, and we have fulfilled our other

ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained

is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 2 in the financial statements, which indicates that the Company incurred a net loss during

the year ended December 31, 2023 and, as of that date, the Company had an accumulated deficit. As stated in Note

2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty

exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not

modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the

financial statements of the current period. These matters were addressed in the context of our audit of the financial

statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these

matters.

Except for the matter described in the Material Uncertainty Related to Going Concern section, we have determined

that there are no other key audit matters to communicate in our report.

MNP LLP

50 Burnhamthorpe Road West, Suite 900, Mississauga ON, L5B 3C2

T: 416.626.6000 F: 416.626.8650

Other Information

Management is responsible for the other information. The other information comprises Management's Discussion

and Analysis.

Our opinion on the financial statements does not cover the other information and we do not express any form of

assurance conclusion thereon.

In connection with our audits of the financial statements, our responsibility is to read the other information and, in

doing so, consider whether the other information is materially inconsistent with the financial statements or our

knowledge obtained in the audits or otherwise appears to be materially misstated. We obtained Management's

Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed on this

other information, we conclude that there is a material misstatement of this other information, we are required to

report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial

Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with

International Financial Reporting Standards, and for such internal control as management determines is necessary to

enable the preparation of financial statements that are free from material misstatement, whether due to fraud or

error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as

a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic

alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

Canadian generally accepted auditing standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they

could reasonably be expected to influence the economic decisions of users taken on the basis of these financial

statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional

judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or

error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is

sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness

of the Company's internal control.

50 Burnhamthorpe Road West, Suite 900, Mississauga, Ontario, L5B 3C2

T: 416.626.6000 F: 416.626.8650 MNP.ca

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates

and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based

on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that

may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a

material uncertainty exists, we are required to draw attention in our auditor's report to the related

disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our

conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future

events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,

and whether the financial statements represent the underlying transactions and events in a manner that

achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and

timing of the audits and significant audit findings, including any significant deficiencies in internal control that we

identify during our audits.

We also provide those charged with governance with a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate with them all relationships and other matters that may

reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most

significance in the audit of the financial statements of the current period and are therefore the key audit matters. We

describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter

or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report

because the adverse consequences of doing so would reasonably be expected to outweigh the public interest

benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Andrew Kevin Spidle.

Mississauga, Ontario	Chartered Professional Accountants
April 2, 2024	Licensed Public Accountants

50 Burnhamthorpe Road West, Suite 900, Mississauga, Ontario, L5B 3C2

T: 416.626.6000 F: 416.626.8650 MNP.ca

Statements of Financial Position

As at December 31, 2023 and 2022

(Expressed in Canadian Dollars)

	2023	2022
	$	$
Assets
Current assets
Cash	4,054,315	3,925,659
Accounts receivable	87,408	162,119
Receivable from projects (note 6)	57,619	36,559
Prepaid expenses	75,881	83,062
Deposits (note 8)	114,292	275,647
	4,389,515	4,483,046
Property, equipment and
Right of use asset (note 4)	71,224	994
	4,460,739	4,484,040
Liabilities
Current liabilities
Accounts payable and accrued liabilities	234,406	90,284
Current portion of lease liability (note 7)	35,000	-
	269,406	90,284
Long term portion of lease liability (note 7)	40,227	-
	309,633	90,284
Shareholders' equity
Share capital (note 9(a))	48,441,470	46,018,773
Contributed surplus (note 10)	17,654,148	15,148,193
Deficit	(61,944,512)	(56,773,210)
	4,151,106	4,393,756
	4,460,739	4,484,040
Note 2 : Basis of presentation and going concern

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

Approved by the Board
signed: "Borys Chabursky"	signed: "Allan Beach"
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Statements of Loss and Comprehensive Loss

For the years ended December 31, 2023 and 2022

(Expressed in Canadian Dollars)

	2023	2022
	$	$
Expenses
Mining exploration and evaluation expenditures (notes 4 and 5)	3,146,690	4,676,147
Mining exploration and evaluation salaries and benefits (note 15)	545,141	575,137
Share-based payments (notes 10 and 15)	871,305	376,912
Salaries, compensations and benefits (note 15)	261,200	243,200
Investor relations	300,292	466,308
Professional fees	215,515	267,254
General and administration	28,307	30,511
Insurance	50,979	42,867
Transfer agent and filing fees	72,935	105,309
Travel	30,637	24,314
Depreciation (note 4)	-	458
	5,523,001	6,808,417
Other
Operator fees and other recoveries (note 6)	(286,444)	(202,676)
Interest income	(65,255)	(46,884)
Premium on a flow-through shares	-	(205,714)
	(351,699)	(455,274)
Net loss and comprehensive loss	(5,171,302)	(6,353,143)
Basic and diluted loss per common share (note 12)	(0.01)	(0.02)
Weighted average number of shares (note 12)	421,807,435	364,723,523

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

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Statements of Changes in Equity

For the years ended December 31, 2023 and 2022

(Expressed in Canadian Dollars)

	Share capital
	Number of		Contributed		Equity
	shares	Amount	surplus	Deficit	total
		$	$	$	$
Balance at January 1, 2023	417,532,288	46,018,773	15,148,193	(56,773,210)	4,393,756
Issuance of common shares
from private placements (note 9(a))	83,190,477	4,350,000	-	-	4,350,000
Fair value of issued warrants
from private placements	-	(1,470,711)	1,470,711	-	-
Fair value of finders fee
compensation warrants	-	(163,939)	163,939	-	-
Expenses of the private placements	-	(292,653)	-	-	(292,653)
Share-based payment (notes 10 and 15)	-	-	871,305	-	871,305
Net loss	-	-	-	(5,171,302)	(5,171,302)
Balance at December 31, 2023 (note 9(a))	500,722,765	48,441,470	17,654,148	(61,944,512)	4,151,106
Balance at January 1, 2022	343,351,111	41,980,262	12,404,406	(50,420,067)	3,964,601
Issuance of common shares
from private placements (note 9(a))	73,643,857	6,905,140	-	-	6,905,140
Fair value of issued warrants
from private placements	-	(2,149,244)	2,149,244	-	-
Fair value of finders fee
compensation warrants	-	(258,112)	258,112	-	-
Expenses of the private placements	-	(542,710)	-	-	(542,710)
Exercise of warrants and options (note 9(a))	537,320	42,956	-	-	42,956
Fair value of exercised warrants and options	-	40,481	(40,481)	-	-
Share-based payments (notes 10 and 15)	-	-	376,912	-	376,912
Net loss	-	-	-	(6,353,143)	(6,353,143)
Balance at December 31, 2022 (note 9(a))	417,532,288	46,018,773	15,148,193	(56,773,210)	4,393,756

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

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Statements of Cash Flows

For the years ended December 31, 2023 and 2022

(Expressed in Canadian Dollars)

	2023	2022
	$	$
Cash flow from operating activities
Net loss for the year	(5,171,302)	(6,353,143)
Items not affecting cash:
Depreciation	35,451	35,152
Interest on lease liability	12,890	3,185
Premium on flow-through shares	-	(205,714)
Share-based payments	871,305	376,912
	(4,251,656)	(6,143,608)
Changes in non-cash items relating to operating activities:
Accounts receivable	74,711	(35,901)
Prepaid expenses	7,181	24,281
Deposits	161,355	(224,285)
Accounts payable and accrued liabilities	144,120	(238,512)
Receivables from joint venturers, net	(21,060)	(92,699)
	(3,885,349)	(6,710,724)
Cash flow from financing activities
Proceeds from exercise of options and warrants, net of costs	-	42,956
Proceeds from issuance of shares, net of costs	4,057,347	6,362,430
Amount paid on lease liability	(43,342)	(44,573)
	4,014,005	6,360,813
Net increase (decrease) in cash	128,656	(349,911)
Cash - Beginning of the year	3,925,659	4,275,570
Cash - End of the year	4,054,315	3,925,659

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

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Notes to the Financial Statements

For the years ended December 31, 2023 and 2022

(Expressed in Canadian Dollars)

1. GENERAL INFORMATION
   Purepoint Uranium Group Inc. ("the Company") is a Canadian resource company engaged in the acquisition, exploration and development of properties for the purpose of producing uranium. The
   Company's principal assets are mineral properties located in Saskatchewan. The ability of the Company to realize the costs it has incurred to date on these and other properties is dependent upon the discovery of economically recoverable reserves, the preservation of the Company's interest in the underlying mining claims, the ability to continue to raise adequate financing and to commence profitable operations in the future, or alternatively, upon the disposal of properties, or the Company's interests therein, on an advantageous basis.
   The Company's head office is located at 120 Adelaide Street West, Suite 2500, Toronto, Ontario, M5H 1T1, Canada.
2. BASIS OF PRESENTATION AND GOING CONCERN
   These financial statements have been prepared on a going concern basis. The going concern basis of presentation assumes that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business.
   During the year ended December 31, 2023, the Company incurred a net loss of $5,171,302 (2022 - $6,353,143), and as of that date, the Company's accumulated deficit was $61,944,512 (December 31, 2022 - $56,773,210). As at December 31, 2023, the Company had available working capital of $4,120,109 (December 31, 2022 - $4,392,762), including a cash balance of $4,054,315 (December 31, 2022 - $3,925,659), which it can deploy to fulfill financial requirements for the 12-month period ending December 31, 2024.
   The ability of the Company to continue as a going concern is dependent on the successful completion of the actions taken or planned. In order to meet future expenditures and cover administrative costs, the Company will need to raise additional financing. Although the Company has been successful in raising funds to date, there can be no assurance that adequate funding will be available in the future, or available under terms favourable to the Company. These circumstances and the volatile and speculative nature of the mining business, represent material uncertainties which may cast doubt on the Company's ability to continue as a going concern.
   These financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. If the going concern basis was not appropriate for these financial statements, then adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses, and the statement of financial position classifications used.

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Notes to the Financial Statements

For the years ended December 31, 2023 and 2022

(Expressed in Canadian Dollars)

3. MATERIAL ACCOUNTING POLICIES

(a) Statement of compliance

These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and Intrepretations of the IFRS Interpretations Committee ("IFRIC"). The accounting policies set out below were consistently applied to all periods presented in these financial statements.

These financial statements were reviewed, approved and authorized for issuance by the Board of Directors (the "Board") of the Company on April 2, 2024.

(b) Basis of preparation

The financial statements are presented in Canadian dollars. The financial statements are prepared on the historical cost basis.

(c) Share-based payments

The share option plan allows Company employees and consultants to acquire shares of the Company. The fair value of options granted is recognized as an employee or consultant expense with a corresponding increase in equity. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee, including directors of the Company. The fair value of the stock options granted is measured at grant date and each tranche is recognized on a graded basis over the period during which the options vest. The fair value of the options granted is measured using the Black-Scholes option pricing model taking into account the terms and conditions upon which the options were granted. At the end of each reporting period, the amount recognized as an expense for unvested options is adjusted to reflect the actual number of share options that are expected to vest.

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