Robex Resources : 2023 / Robex – Consolidated Financial Statements 2022

Consolidated Financial Statements December 31, 2022

Table of Contents

CONSOLIDATED FINANCIAL STATEMENTS	Page
Independent auditor's report	1
Consolidated statements of income	7
Consolidated statements of comprehensive income	8
Consolidated statements of changes in equity	9
Consolidated balance sheets	10
Consolidated statements of cash flows	11
Notes to consolidated financial statements
1.	Description of the business	12
2.	Basis of preparation	12
3.	Significant accounting policies	12
4.	New accounting standards adopted during the year and standards issued but not yet effective	21
5.	Critical accounting estimates and judgments	22
6.	Segmented information	24
7.	Acquisition of Sycamore Group	28
8.	Changes to the comparative figures	29
9.	Mining expenses	29
10.	Administrative expenses	29
11.	Finance expenses	30
12.	Inventory	30
13.	Accounts receivable	30
14.	Mining properties	31
15.	Property, plant and equipment	33
16.	Accounts payable	34
17.	Long-term debt, lines of credit and bank overdraft	34
18.	Environmental liabilities	35
19.	Leases	36
20.	Shareholders' equity	37
21.	Accumulated other comprehensive income	39
22.	Additional information to the consolidated statements of cash flows	39
23.	Income taxes	40
24.	Earnings per share	42
25.	Capital disclosures	42
26.	Contingencies and commitments	42
27.	Financial instruments	43
28.	Related party transactions	46
29.	Subsequent events	47

A BLUEPRINT FOR RESPONSIBLE MINING

Independent auditor's report

To the Shareholders of Robex Resources Inc.

Our opinion

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Robex Resources Inc. and its subsidiaries (together, the Company) as at December 31, 2022 and 2021, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS).

What we have audited

The Company's consolidated financial statements comprise:

• the consolidated statements of income for the years ended December 31, 2022 and 2021;
• the consolidated statements of comprehensive income for the years ended December 31, 2022 and 2021;
• the consolidated statements of changes in equity for the years ended December 31, 2022 and 2021;
• the consolidated balance sheets as at December 31, 2022 and 2021;
• the consolidated statements of cash flows for the years ended December 31, 2022 and 2021; and
• the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information.

Basis for opinion

We conducted our audit 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

PricewaterhouseCoopers LLP

1250 René-Lévesque Boulevard West, Suite 2500, Montréal, Quebec, Canada H3B 4Y1 T: [phone], F: [phone]

"PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

Key audit matters

Key Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2022. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter	How our audit addressed the key audit matter

Uncertain tax positions

Refer to Note 5, Critical Accounting Estimates and judgements, to the consolidated financial statements.

The Company is subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the amount of the overall tax provision. The ultimate tax consequences of many of the transactions and calculations are uncertain. The Company recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. When the final tax outcome of these matters is different from the tax provision initially recorded, such differences will impact the current and deferred tax assets and liabilities in the period in which such determination is made.

The estimates for the various notices of assessment involve a degree of estimation and judgment with respect to certain items for which the tax treatment cannot be determined with certainty until the objection process reaches a resolution with its tax authority or, if applicable, through a formal legal proceeding.

The inherent uncertainty regarding the outcome of these items means that their eventual resolution could differ from the accounting estimates, thereby

Our approach to addressing the matter included the following procedures, among others:

Tested the calculation of the overall tax provision by considering uncertain tax positions, by juridiction, based on developments in the tax situation, which included the following:

• Evaluated the information used in calculating the provision, including consideration of changes in facts and circumstances during the year.
• Used professionals with specialized skills and knowledge in tax to assist in evaluations of the Company's uncertain tax positions, including assessing the reasonableness of management's assessment of the likelihood that the tax authority will accept an uncertain tax treatment, estimating the provision and applying relevant tax laws.
• Evaluated the status and results of income tax audits with the relevant tax authorities.
• Assessed the related disclosures in the consolidated financial statements.

affecting the Company's financial position, results of operations and cash flows.

We considered this a key audit matter due to the significant judgement made by management in evaluating uncertain tax positions. This resulted in a high degree of auditor judgment and subjectivity in performing procedures. The audit effort involved the use of professionals with specialized skill and knowledge in foreign tax matters.

Other information

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

Our opinion on the consolidated financial statements does not cover the other information, and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, 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 consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going councern, disclosing, as applicable, matters related to going councern and using the going councern 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.