Purepoint Uranium : Q3 2023 Financial Statement

Condensed Interim Financial Statements

September 30, 2023 and 2022

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Condensed Interim Statements of Financial Position

As at September 30, 2023 and December 31, 2022

(Expressed in Canadian Dollars) (Unaudited)

September 30,	December 31,
2023	2022
$	$

Assets
Current assets
Cash	928,787	3,925,659
Accounts receivable	23,214	162,119
Receivable from projects (note 7)	-	36,559
Prepaid expenses	77,644	83,062
Deposits (note 8)	268,385	275,647
	1,298,030	4,483,046
Property, equipment and
Right of use asset (note 5)	80,084	994
	1,378,114	4,484,040
Liabilities
Current liabilities
Accounts payable and accrued liabilities	83,567	90,284
Current portion of lease liability (note 9)	33,803	-
	117,370	90,284
Long term portion of lease liability (note 9)	49,439	-
	166,809	90,284
Shareholders' equity
Share capital (note 10(a))	46,018,773	46,018,773
Contributed surplus	15,570,879	15,148,193
Deficit	(60,378,347)	(56,773,210)
	1,211,305	4,393,756
	1,378,114	4,484,040
Subsequent events (note 18)
The accompanying notes are an integral part of these condensed interim financial statements.

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Condensed Interim Statements of Loss and Comprehensive Loss

For the Three and Nine Months Ended September 30, 2023 and 2022

(Expressed in Canadian Dollars) (Unaudited)

For the three-month period	For the nine-month period
ended September 30,	ended September 30,
2023	2022	2023	2022
$	$	$	$

Expenses
Mining exploration and evaluation	111,939	1,443,482	2,469,186	3,008,387
expenditures (note 6)
Mining exploration and evaluation	91,780	136,223	418,891	430,882
salaries and benefits
Share-based payments (notes 11 and 17)	-	-	422,686	376,912
Salaries, compensations and benefits	55,050	55,050	196,150	187,150
Investor relations	68,334	69,821	183,370	335,715
Professional fees	21,910	94,051	100,711	189,649
Transfer agent and filing fees	6,515	70,197	64,531	92,650
Insurance	11,997	11,226	38,982	31,642
General and administration	9,190	5,595	23,652	21,489
Travel	10,122	6,917	15,818	10,851
Depreciation (note 5)	-	-	-	456
	386,837	1,892,562	3,933,977	4,685,783
Other
Operator fees and other	(4,300)	(94,224)	(271,208)	(145,331)
recoveries (note 7)
Interest income	(13,121)	(18,138)	(57,632)	(26,488)
Premium on flow-through shares	-	-	-	(205,714)
	(17,421)	(112,362)	(328,840)	(377,533)
Net loss and comprehensive loss	(369,416)	(1,780,200)	(3,605,137)	(4,308,250)
Basic and diluted loss per common
share (note 12)	(0.00)	(0.00)	(0.01)	(0.01)
Weighted average number of
shares (note 12)	417,532,288	368,889,431	417,532,288	359,221,512
The accompanying notes are an integral part of these condensed interim financial statements.

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Condensed Interim Statements of Changes in Equity

For the Nine Months Ended September 30, 2023 and 2022

(Expressed in Canadian Dollars) (Unaudited)

	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
Share-based payment	-	-	422,686	-	422,686
Net loss	-	-	-	(3,605,137)	(3,605,137)
Balance at September 30, 2023	417,532,288	46,018,773	15,570,879	(60,378,347)	1,211,305
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	25,001,000	3,500,140	-	-	3,500,140
Fair value of issued warrants from private
placements	-	(1,263,482)	1,263,482	-	-
Fair value of finders fee compensation warrants	-	(119,966)	119,966	-	-
Expenses of the private placements	-	(340,824)	-	-	(340,824)
Exercise of warrants	537,320	42,956	-	-	42,956
Fair value of exercised warrants	-	19,151	(19,151)	-	-
Share-based payment	-	-	376,912	-	376,912
Net loss	-	-	-	(4,308,250)	(4,308,250)
Balance at September 30, 2022	368,889,431	43,818,237	14,145,615	(54,728,317)	3,235,535
The accompanying notes are an integral part of these condensed interim financial statements.

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Condensed Interim Statements of Cash Flows

For the Nine Months Ended September 30, 2023 and 2022

(Expressed in Canadian Dollars) (Unaudited)

For the nine-month period ended

September 30,

20232022

$$

Cash flow from operating activities

Net loss for the period	(3,605,137)	(4,308,250)
Items not affecting cash:
Depreciation	26,589	26,472
Interest on lease liability	10,070	2,932
Share-based payments	422,686	376,912
Premium on flow-through shares	-	(205,714)
	(3,145,792)	(4,107,648)
Changes in non-cash items relating to operating activities:
Accounts receivable	138,905	38,370
Prepaid expenses	5,418	19,174
Deposits	7,262	(224,285)
Accounts payable and accrued liabilities	(6,717)	5,318
Advances (disbursements) from joint venturers, net	36,559	(169,027)
	(2,964,365)	(4,438,098)

Cash flow from financing activities

Proceeds from issuance of shares, net of costs	-	3,159,316
Proceeds from exercise of options and warrants, net of costs	-	42,956
Amount paid on lease liability	(32,507)	(33,430)
	(32,507)	3,168,842
Net decrease in cash	(2,996,872)	(1,269,256)
Cash - Beginning of the period	3,925,659	4,275,570
Cash - End of the period	928,787	3,006,314

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

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Notes to Condensed Interim Financial Statements

For the Three and Nine Months Ended September 30, 2023 and 2022

(Expressed in Canadian Dollars) (Unaudited)

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 condensed interim 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.

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 may cast significant doubt as to the Company's ability to continue as a going concern and ultimately the appropriateness of the use of accounting principles to a going concern.

These condensed interim 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 condensed interim financial statements, then adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses, and the condensed interim statement of financial position classifications used.

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Notes to Condensed Interim Financial Statements

For the Three and Nine Months Ended September 30, 2023 and 2022

(Expressed in Canadian Dollars) (Unaudited)

3. Significant Accounting Policies

(a) Statement of compliance

The accounting policies applied by the Company in these unaudited condensed interim financial statements are the same as those applied by the Company in its audited annual financial statements as at and for the year ended December 31, 2022. These unaudited condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all the information required for full annual financial statements and should be read in conjunction with the audited financial statements of the Company as at and for the year ended December 31, 2022.

The policies applied in these condensed interim financial statements are based on IFRS issued and outstanding as of November 28, 2023, the date the Board of Directors approved the condensed interim financial statements.

(b) Basis of preparation

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

4. Significant Accounting Judgments and Estimates

The preparation of these condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. The condensed interim financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and the revision affects both current and future periods.

Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period, that could have an effect on the amounts recognized in the condensed interim financial statements relate to, but are not limited to, the following:

Share-based payments

The Company grants options to certain individuals. Fair value is measured at the date of grant using the Black-Scholes option pricing mechanism. Management is required to make certain estimates when determining the fair value of stock option awards. These estimates affect the amount recognized as share-based payment expense in the condensed interim statements of loss and comprehensive loss.

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Notes to Condensed Interim Financial Statements

For the Three and Nine Months Ended September 30, 2023 and 2022

(Expressed in Canadian Dollars) (Unaudited)

5. Property and Equipment

							Additions and
Cost		January 1,		Additions	December 31,	Reductions	September 30,
		2022		in 2022		2022		in 2023		2023
Exploration property and equipment
Field property and equipment	$	5,350	$	-	$	5,350	$	-	$	5,350
Furniture and equipment		28,373		-		28,373		-		28,373
Right of use assets		137,637		-		137,637		(31,958)		105,679
Office property and equipment
Furniture and fixtures		6,544		-		6,544		-		6,544
	$	177,904	$	-	$	177,904	$	(31,958)	$	145,946

						Depreciation and
Accumulated depreciation		January 1,	Depreciation	December 31,	Reductions	September 30,
		2022		in 2022		2022		in 2023		2023
Exploration property and equipment
Field property and equipment	$	4,603	$	149	$	4,752	$	165	$	4,917
Furniture and equipment		27,844		133		27,977		-		27,977
Right of use assets		103,225		34,412		137,637		(111,213)		26,424
Office property and equipment
Furniture and fixtures		6,086		458		6,544		-		6,544
	$	141,758	$	35,152	$	176,910	$	(111,048)	$	65,862

Net book value	September 30,	December 31,		January 1,
		2023		2022		2022
Exploration property and equipment
Field property and equipment	$	433	$	598	$	747
Furniture and equipment		396		396		529
Right of use assets		79,255		-		34,412
Office property and equipment
Furniture and fixtures		-		-		458
	$	80,084	$	994	$	36,146

In the three- and nine-month periods ended September 30, 2023, $8,863 and $26,589 (2022 - $8,672 and $26,016) of depreciation expense was included in mining exploration and evaluation expenditures on the condensed interim statements of loss and comprehensive loss.

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Notes to Condensed Interim Financial Statements

For the Three and Nine Months Ended September 30, 2023 and 2022

(Expressed in Canadian Dollars) (Unaudited)

6. Mining Exploration and Evaluation Expenditures

The Company's properties are all located at the Athabasca Basin, Northern Saskatchewan. The Company currently maintains thirteen properties. The Company entered into joint venture agreements and operates one of these projects with Cameco Corporation and Orano Canada Inc. (formerly AREVA Resources Canada Inc.), one of these projects with Cameco Corporation, while the other ten projects remain 100% owned. In 2023, the Company also added 16 new dispositions to the existing projects through staking. These early-stage uranium projects reside in Northern Saskatchewan and will be the subject of preliminary review and surveying in 2023.

Mining exploration expenditures on the Company's properties during the three- and nine-month periods ended September 30, 2023 and 2022 are as follows:

	For the three-month period ended	For the nine-month period ended
			September 30,			September 30,
		2023		2022		2023		2022
Red Willow Property	$	7,493	$	266,277	$	1,888,485	$	1,786,201
Hook Lake Property		-		21,934		399,376		45,314
Smart Lake Property		-		2,386		-		4,269
Turnor Lake Property		7,747		-		31,468		250
Umfreville Lake Property		-		-		-		5,299
Henday Lake Property		-		-		2,258		14,169
Tabbernor Block		6,945		724,647		52,617		724,647
Other Properties		89,754		428,238		94,982		428,238
	$	111,939	$	1,443,482	$	2,469,186	$	3,008,387

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Notes to Condensed Interim Financial Statements

For the Three and Nine Months Ended September 30, 2023 and 2022

(Expressed in Canadian Dollars) (Unaudited)

7. Advances and Receivables on Projects

Joint Venture with Cameco and Orano

On October 31, 2012, the Company entered into a definitive joint venture agreement with Cameco Corporation ("Cameco") and Orano Canada Inc. ("Orano", formerly Areva Resources Canada Inc.) for the ongoing exploration of Hook Lake uranium project in the Athabasca Basin (the "Project") and pursuant to the option agreement with Cameco from 2007. The Company holds a 21% interest in the Project. The remaining 79% is owned equally by Cameco and Orano. The Company acts as the Project operator for the Joint Venture and charges an administration fee of 10% of the invoiced Project costs incurred. In 2022, Cameco and Orano each funded their respective portions of the project by contributing $81,602 each for a total amount of $163,204. In the nine-month period ended September 30, 2023 Cameco and Orano advanced further $646,133 each for a total amount of $1,292,266. At September 30, 2023 the Company had a receivable balance of $Nil (December 31, 2022 - $36,559) from Joint Venture partners. The advances and receivables are unsecured and non- interest bearing.

The administration fees are included in operator fees and other recoveries in the condensed statements of loss and comprehensive loss.

Joint Venture with Cameco

On January 1, 2010, the Company entered into a definitive joint venture agreement with Cameco Corporation ("Cameco") for the ongoing exploration of the Smart Lake uranium project in the Athabasca Basin (the "Smart Lake Project"). The Company holds a 27% interest in the Smart Lake Project. The remaining 73% is owned by Cameco. The Company acts as the Project operator for the Joint Venture. At September 30, 2023, a receivable balance from Cameco was $Nil (December 31, 2022 - $Nil).

8. Deposits

Deposits consist of last month rent for Saskatoon office and deficiency deposits for various properties. The deficiency deposits are held by the Province of Saskatchewan in lieu of exploration work performed. The deficiency deposits will be refunded once the exploration work is completed and required filings submitted and processed.

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