Rupert Resources : Financial Statements for 6 months end August 2023

RUPERT RESOURCES LTD.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED

AUGUST 31, 2023

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying unaudited condensed interim consolidated financial statements of Rupert Resources Ltd. (the "Company") are the responsibility of management and the Board of Directors.

The unaudited condensed interim consolidated financial statements have been prepared by management, on behalf of the Board of Directors, in accordance with the accounting policies disclosed in the notes to the unaudited condensed interim consolidated financial statements. Where necessary, management has made informed judgments and estimates in accounting for transactions which were not complete at the statement of financial position date. In the opinion of management, the unaudited condensed interim consolidated financial statements have been prepared within acceptable limits of materiality and are in accordance with International Accounting Standard 34 - Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards appropriate in the circumstances.

Management has established processes, which are in place to provide it sufficient knowledge to support management representations that it has exercised reasonable diligence that (i) the unaudited condensed interim consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of, and for the periods presented by, the unaudited condensed interim consolidated financial statements; and (ii) the unaudited condensed interim consolidated financial statements fairly present in all material respects the financial condition, financial performance and cash flows of the Company, as of the date of and for the years presented by the unaudited condensed interim consolidated financial statements.

The Board of Directors is responsible for reviewing and approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the unaudited condensed interim consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company for issuance to the shareholders.

Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.

NOTICE TO READER

The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of management. The unaudited condensed interim consolidated financial statements have not been reviewed by the Company's auditors.

Rupert Resources Ltd.

Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian Dollars)

(Unaudited)

				As at		As at
				August 31,		February 28,
				2023		2023
ASSETS
Current assets		$	54,517,897
Cash and cash equivalents (note 3)	$	70,499,292
Marketable securities (note 4)			816,319		2,085,948
Prepaids and sundry receivables (note 5)		633,647		1,116,422
				55,967,863		73,701,662
Non-current assets			1,358,295
Restricted cash (note 6)				1,332,465
Property, plant and equipment (note 7)		5,262,652		5,266,396
Right-of-use asset (note 8)			82,462		113,497
Exploration and evaluation assets (note 10)		108,731,690		96,628,131
			$	171,402,962	$	177,042,151
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities		$	4,254,246
Amounts payable and accrued liabilities (notes 11 and 17)	$	6,927,101
Lease liability (note 13)			68,429		65,615
				4,322,675		6,992,716
Non-current liabilities			6,460,401
Asset retirement obligation (note 12)			8,783,178
Lease liability (note 13)			17,647		51,405
				10,800,723		15,827,299
Shareholders' Equity			226,789,769
Share capital (note 14)				225,288,990
Shares to be issued (note 14)			1,660,416		-
Contributed surplus (note 14)			7,839,207		7,758,519
Cumulative translation adjustment			1,388,730		(685,065)
Equity portion of convertible debentures		75,700		75,700
Deficit			(77,151,583)		(71,223,292)
				160,602,239		161,214,852
Total liabilities and shareholders' equity	$	171,402,962	$	177,042,151
Nature of Operations (note 1)
Commitments and Contingencies (note 19)
Subsequent Events (note 20)
Approved on behalf of the Board:
(Signed) "Gunnar Nilsson"		Director	(Signed) "James Withall"		Director

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

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Rupert Resources Ltd.

Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian Dollars)

(Unaudited)

		Three Months Ended		Six Months Ended
		August 31,		August 31,
		2023		2022		2023		2022
Operating expenses	$	2,513,251			$	3,609,441
General and administrative expenses (note 15)	$	1,881,243	$	2,714,669
Share-based payments (notes 14 and 17)		726,187		841,789		1,457,179		1,485,808
Depreciation (notes 7 and 8)		76,939		23,752		124,958		39,181
Loss before other items		(3,316,377)		(2,746,784)		(5,191,578)		(4,239,658)
Realized gain on marketable securities (note 3)		463,609		-		463,609		-
Unrealized loss on marketable securities		(248,820)				(1,116,212)
(notes 3 & 4)			(85,000)			(285,000)
Accretion and interest income (expense) (note 13)		155,617		(1,838)		480,552		(4,154)
Foreign exchange loss		(390,841)		(221,009)		(590,614)		(565,738)
Other income		25,952		-		25,952		100
Net (loss) for the period		(3,310,860)		(3,054,631)		(5,928,291)		(5,094,450)
Other comprehensive gain (loss)
Item that will be reclassified subsequently to income
Exchange differences on translating foreign		1,763,316				2,073,795
operations			(2,118,636)			(5,223,794)
Net (loss) and comprehensive (loss) for the period	$	(1,547,544)	$	(5,173,267)	$	(3,854,496)	$	(10,318,244)
Basic and diluted net (loss) per share (note 16)	$	(0.02)	$	(0.02)	$	(0.03)	$	(0.03)
Weighted average number of common shares
outstanding - basic and diluted (note 16)	202,726,786		191,268,298	202,561,726	190,552,791

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

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Rupert Resources Ltd.

Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian Dollars)

(Unaudited)

		Six Months Ended
		August 31,
		2023		2022
Operating activities	$	(5,928,291)
Net loss for the period	$	(5,094,450)
Adjustments for:		1,457,179
Share-based payments			1,485,808
Unrealized loss on marketable securities		1,179,646		285,000
Depreciation		124,958		39,181
Exchange differences on translating foreign operations		584,785		(402,303)
Accretion and interest expense		2,627		3,896
Changes in non-cash working capital items:		482,775
Prepaids and sundry receivables			427,980
Amounts payable and accrued liabilities		(2,672,855)		(3,390,016)
		(4,769,176)		(6,644,904)
Financing activities		(75,296)
Performance share units settled in cash			-
Proceeds from exercise of warrants		-		11,543,704
Proceeds from exercise of options		1,860,000		1,191,600
Lease liability payments		(35,490)		(32,719)
		1,749,214		12,702,585
Investing activities		(12,945,071)
Expenditure on exploration and evaluation assets			(13,442,860)
Net deposits for restricted cash		(2,936)		(76,469)
Purchase of property, plant and equipment, net of disposals		(13,426)		(953,294)
		(12,961,433)		(14,472,623)
Net change in cash		(15,981,395)		(8,414,942)
Cash and cash equivalents, beginning of period		70,499,292		45,275,410
Cash and cash equivalents, end of period	$	54,517,897	$	36,860,468

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

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