QC Copper and Gold : Interim Quarterly Financial Statements

QC Copper and Gold Inc.

Condensed Consolidated Financial Statements

For the periods ended January 31, 2022 and 2021

(Expressed in Canadian Dollars unless otherwise indicated)

(unaudited)

Consolidated Statements of Financial Position As at January 31, 2022 and 2021

(Expressed in Canadian dollars)

NotesJanuary 31, 2021

October 31, 2021

ASSETS Current Cash

• 9 $ 16,084,048 $ 17,508,624

GST/HST/QST receivable 178,502 137,819

Amounts receivable Due from related party Prepaid expenses

12 5

62,833 62,833 76,974 25,086 351,523 98,335

• Total current assets 16,753,880 17,832,697

  Investment in associate Equipment

  7 5

• 2,807,348 2,843,708

78,592

55,997

TOTAL ASSETS

$ 19,639,820 $ 20,732,402

LIABILITIES Current

Accounts payable and accrued liabilities Flow-through share liability

Current tax payable TOTAL LIABILITIES

SHAREHOLDERS' EQUITY

Share capital 11

Shares to be issued 11 Share-based payment reserve

Retained earnings

TOTAL EQUITY

10,11,13

$	152,071	916,455
2,235,100	2,613,553
-	30,000
2,387,171	3,560,008
16,124,718	14,405,914
16,428	371,667
2,308,535	1,840,294
(1,197,032)	554,519
17,252,649	17,172,394

$

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 19,639,820 $ 20,732,402

Approved on behalf of the Directors:

"Alex Stewart"

Alex Stewart - Director

"Stephen Stewart"

Stephen Stewart - DirectorThe accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Consolidated Statements of Income and Comprehensive Income For the periods ended January 31, 2022 and 2021

(Expressed in Canadian dollars)

NotesJanuary 31, 2022

January 31, 2021

EXPENSES Amortization Share-based payments

Consulting, wages and management fees Exploration expense

Office, rent and general Professional fees

• 6 $ 11 12 7

4,905 $ 853,413

2,319 -

78,593 70,758 1,044,939 255,201

(9,865) 5,880 34,778 6,957

Transfer agent, filing fees and shareholder communications 72,329 124,776

Travel and related costs

Equity loss on investment in associate Gain on dilution of investment in associate TOTAL EXPENSES (RECOVERY)

8 8

14,552 206,984

680 145,207

(170,624) (883,836)

$

2,130,004 $ (272,058)

Income (loss) from operations for the period

Deferred income tax recovery

(2,130,004) 272,058

Flow-through share premium renunciation NET INCOME (LOSS) FOR THE PERIOD

10,11,13

378,453 45,800

$ (1,751,551) $

317,858

139,091,524

94,895,299

Weighted average number of shares - basic Earnings (loss) per share - basic

$

(0.01)

$

-

161,941,218

116,554,841

Weighted average number of shares - diluted Earnings (loss) per share - diluted

$

(0.01)

$

-

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

QC Copper and Gold Inc.

Consolidated Statements of Changes in Equity For the periods ended January 31, 2022 and 2021

(Expressed in Canadian dollars)

Number of shares	Share-basedAmountShares to be issued Payment ReserveRetained Earnings (Deficit)Total Equity
Balance at October 31, 2020 (audited) Income for the period Shares issued on flow-through private placement Value of warrants Premium allocated to flow-through shares Shares issued on hard-dollar private placement Value of warrants Finders' units issued Share issuance costs Warrants exercised	70,778,634 - 8,890,001 - - 22,667,066 - 1,837,266 - 3,736,800	$ 3,584,811 -$ - $ - 1,600,200 (221,000) (266,700) 3,400,060 (588,000) 227,590 (275,590) 502,357 - - - - - - - - 1,123,760 $ - - 221,000 - - 588,000 48,000 - (80,265) 72,394 $ 317,858 4,780,965 317,858 - 1,600,200 - - - (266,700) - 3,400,060 - - - 275,590 - (275,590) -422,092
Balance at January 31, 2021 (unaudited)	107,909,767	$ 7,963,728 $ -$ 1,900,495 $ 390,252 $ 10,254,475

Number of shares	Share-basedAmountShares to be issued Payment ReserveRetained Earnings (Deficit)Total Equity
Balance at October 31, 2021 (audited) Income for the period Shares issued for exploration property Share-based compensation Options Exercised Warrants exercised	134,355,655 - 150,000 - 700,000 9,766,665	$ 14,405,914 -$ 371,667 $ -1,840,294 -$ 554,519 $ 17,172,394 (1,751,551) (1,751,551) 10,000 - - - 10,000 - 74,926 1,633,878 - - (355,239) 853,413 - 853,413 (28,926) - 46,000 (356,246) - 922,393
Balance at January 31, 2022 (unaudited)	144,972,320	$ 16,124,718 $ 16,428 $ 2,308,535 $ (1,197,032) $ 17,252,649

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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QC Gold and Copper Inc.

Consolidated Statements of Cash Flows

For the periods ended January 31, 2022 and 2021 (Expressed in Canadian dollars)

January 31,	January 31,
For the periods ended	2022	2021
Operating activities
(Loss) Income for the period	$	(1,751,551) $	317,858
Items not involving cash
Flow-through share premium renunciation	(378,453)	(45,800)
Share-based payments	853,413	-
Amortization	4,905	2,319
Shares and warrants issued for exploration expenses	10,000	-
Equity loss on investment in associate	206,984	145,207
(Gain) on dilution of investment in associate	(170,624)	(883,836)
Changes in non-cash working capital items
Amounts receivable	-	67,562
GST/HST/QST receivable	(40,684)	(41,467)
Prepaid expenses	(253,188)	-
Income taxes payable	17,485	-
Accounts payable and accrued liabilities	(811,860)	122,087
Net cash (used in) operating activities	$	(2,313,573) $	(316,070)
Financing activities
Issue of common shares and warrants	-	5,000,260
Share issue costs	-	-
Exercise of warrants	1,306,557	422,092
Exercise of stock options	17,074	-
Shares to be issued for warrants exercised	(355,246)	-
Net cash provided by financing activities	$	5,422,352
Investing activities
Proceeds on sale of shares of associate	-
Purchase of equipment	(29,507)
Advances to related parties	(18,229)
Net cash provided by investing activities	$	(47,736)
Net increase in cash	5,058,546
Cash, Beginning of period	1,743,473
Cash, End of period	$	6,802,019

968,385 $

-

(27,500)

(51,888)

(79,388) $

(1,424,576)

17,508,624

16,084,048 $

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

7