Rackla Metals : Financial Review for the Second Quarter Ended September 30, 2021

FINANCIAL REVIEW

Nine Months ended September 30, 2021

(An Exploration Stage Company)

CONDENSED INTERIM FINANCIAL STATEMENTS

For the nine months ended September 30, 2021

(Unaudited - Prepared by Management)

(Expressed in Canadian Dollars)

NOTICE OF NO AUDITOR REVIEW OF

CONDENSED INTERIM FINANCIAL STATEMENTS

In accordance with National Instrument 51-102 of the Canadian Securities Administrators, the Company discloses that its external auditors have not reviewed the unaudited condensed interim financial statements for the nine months ended September 30, 2021. These condensed interim financial statements have been prepared by management and approved by the Audit Committee and the Board of Directors of the Company.

RACKLA METALS INC.

(An Exploration Stage Company)

CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Expressed in Canadian Dollars)

As at:	September 30,		December 31,
		2021		2020
ASSETS
Current assets
Cash	$	29,711	$	20,560
Equity investments (Note 4)		4,501		11,251
Taxes receivable		3,777		4,752
Prepaid expenses (Note 9)		13,651		-
		51,640		36,563
Non-current assets
Deposit (Note 9)		61,000		61,000
Deferred acquisition costs (Notes 5 and 9)		1,122,920		-
Exploration and evaluation assets (Note 5)		10,001		10,001
		1,193,921		71,001
TOTAL ASSETS	$	1,245,561	$	107,564
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	32,233	$	25,860
Due to related parties (Note 9)		167,552		21,888
Total liabilities		199,785		47,748
Shareholders' equity
Share capital (Note 7)		9,442,677		8,315,280
Other equity reserves		124,922		124,922
Accumulated other comprehensive loss		(55,249)		(48,499)
Deficit		(8,466,574)		(8,331,887)
Total shareholders' equity		1,045,776		59,816
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,245,561	$	107,564

APPROVED BY THE BOARD OF DIRECTORS AND AUTHORIZED FOR ISSUE ON NOVEMBER 9, 2021:

"Bruce Smith"		"William Katzin"
Bruce Smith, Director		William Katzin, Director

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

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RACKLA METALS INC.

(An Exploration Stage Company)

CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (UNAUDITED)

(Expressed in Canadian Dollars)

		Three months ended		Nine months ended
			September 30,			September 30,
		2021		2020		2021		2020
EXPLORATION EXPENDITURES (Note 6)	$	-	$	50,301	$	1,468	$	50,301
GENERAL AND ADMINISTRATIVE EXPENSES
Legal and audit fees		-		-		1,806		611
Management fees (Note 9)		10,500		10,500		31,500		29,750
Office and administrative (Note 9)		9,511		5,606		28,969		19,245
Salaries and benefits (Note 9)		12,546		4,931		39,188		21,557
Share-based payments (Note 8)		-		-		-		3,253
Shareholder communications (Note 9)		1,325		703		4,195		4,061
Transfer agent and regulatory fees (Note 9)		1,221		735		12,873		9,888
Travel and accommodation (Note 9)		928		384		4,688		4,097
		36,031		22,859		123,219		92,462
		(36,031)		(73,160)		(124,687)		(142,763)
Write-off of exploration and evaluation assets
(Note 5)		-		-		(10,000)		-

Net loss for the period	$	(36,031)	$	(73,160)	$	(134,687)	$	(142,763)
Other comprehensive income (loss)
Items that will not be reclassified subsequently to
profit or loss:
Fair value gain (loss) on equity investments
(Note 4)		(1,500)		2,250		(6,750)		2,625
Total comprehensive loss	$	(37,531)	$	(70,910)	$	(141,437)	$	(140,138)
Basic and diluted loss per share		$(0.00)		$(0.00)		$(0.00)		$(0.01)
Weighted average number of common shares
outstanding		34,007,395		25,261,308		32,865,008		24,476,636

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

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