Sigma Lithium : Second Quarter 2021 Financial Statements

SIGMA LITHIUM CORPORATION

(FORMERLY SIGMA LITHIUM RESOURCES

CORPORATION)

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS

THREE AND SIX MONTHS ENDED

JUNE 30, 2021 AND 2020

(EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying unaudited condensed interim consolidated financial statements of Sigma Lithium Corporation (formerly Sigma Lithium Resources Corporation) (the "Company") are the responsibility of management and have been approved by the Board of Directors ("Board").

The unaudited condensed interim consolidated financial statements have been prepared by management in accordance with International Accounting Standards 34 Interim Financial Reporting of International Financial ReportingStandards as issued by the International Accounting Standards Board. When alternative accounting methods exist, management has chosen those it deems most appropriate in the circumstances. Financial statements are not exact since they include certain amounts based on estimates and judgments. Management has determined such amounts on a reasonable basis in order to ensure that the financial statements are presented fairly, in all material respects.

The Board is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the financial statements. The Board carries out this responsibility principally through its Audit Committee.

The Audit Committee is appointed by the Board, and the majority of its members are independent directors. The Audit Committee meets at least four times a year with management, as well as the external auditors, to discuss internal controls over the financial reporting process, auditing matters and financial reporting issues, to satisfy itself that each party is properly discharging its responsibilities, and to review the quarterly and the annual reports, the consolidated financial statements and the external auditors' reports. The Audit Committee reports its findings to the Board for consideration when approving the consolidated financial statements for issuance to the shareholders. The Audit Committee also considers, for review by the Board and approval by the shareholders, the engagement or reappointment of the external auditors.

"Calvyn Gardner"	"Guilherme Guimarães"
Chairman and Chief Executive Officer	Chief Financial Officer

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Sigma Lithium Corporation

(Formerly Sigma Lithium Resources Corporation)

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

(Unaudited)

		June 30,	December 31,
		2021		2020
ASSETS
Current assets
Cash and cash equivalents (note 4)	$	40,576,508	$	13,543,024
Receivables and other assets (notes 5 and 12)		582,534		503,420
Total current assets		41,159,042		14,046,444
Non-current assets
Receivables and other assets (notes 5 and 12)		124,104		111,098
Exploration and evaluation assets (note 7)		3,203,346		18,354,148
Property, plant and equipment (note 6)		23,194,434		686,308
Total assets	$	67,680,926	$	33,197,998
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	351,220	$	1,953,633
Revolving credit facility (note 8)		1,378,353		2,683,880
Payroll and other taxes		435,753		267,666
Note payable (note 10)		280,173		1,941,349
Lease liability (notes 11 and 12)		9,713		9,082
Other liabilities		-		72,127
Total current liabilities		2,455,212		6,927,737
Long-term liabilities
Deferred revenue (note 9)		4,007,100		4,007,100
Note payable (note 10)		-		262,696
Lease liability (notes 11 and 12)		240,762		243,117
Total liabilities		6,703,074		11,440,650
Shareholders' equity
Share capital (note 13)		92,646,319		53,910,946
Contributed surplus		11,780,884		3,930,885
Accumulated other comprehensive loss		(2,828,689)		(2,858,091)
Accumulated deficit		(40,620,662)		(33,226,392)
Total shareholders' equity		60,977,852		21,757,348
Total liabilities and shareholders' equity	$	67,680,926	$	33,197,998

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

Related parties (notes 5, 8, 11 and 12)

Subsequent event (note 8)

Approved on behalf of the Board:

(Signed) "Calvyn Gardner"

, Director

(Signed) "Marcelo Paiva"

, Director

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Sigma Lithium Corporation

(Formerly Sigma Lithium Resources Corporation)

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

(Unaudited)

		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2021		2020		2021		2020
Operating expenses
General and administrative expenses (note 17)	$	855,184	$	445,626	$	6,947,427	$	870,667
Accretion and interest on notes payable (note 10)		5,460		79,919		43,282		166,460
Interest expense on revolving credit facility and
suppliers (note 8)		57,732		22,335		125,661		57,110
Fair value adjustment on restructuring of		-		124,109		-		9,977
note payable (note 10)
Foreign exchange loss (gain)		87,011		(544,846)		250,825		(845,230)
Depreciation		13,729		14,452		27,075		31,617
Net loss for the period		(1,019,116)		(141,595)		(7,394,270)		(290,601)
Other comprehensive loss
Amounts that may be reclassified subsequently
to profit and loss
Cumulative translation adjustment		1,056,722		(724,454)		29,402		(2,444,350)
Net loss and comprehensive income (loss) for	$	37,606	$	(866,049)	$	(7,364,868)	$	(2,734,951)
the period
Loss per common share
Equity holders of the Company
Basic and diluted net loss per common
share (note 14)	$	(0.01)	$	(0.00)	$	(0.09)	$	(0.00)
Weighted average number of common shares
outstanding - basic and diluted		87,368,212		68,878,891		85,062,054		68,878,891

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

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Sigma Lithium Corporation

(Formerly Sigma Lithium Resources Corporation)

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

(Unaudited)

Six months ended June 30,	2021		2020
Operating activities
Net loss for the period	$ (7,394,270)	$	(290,601)
Adjustments for:
Depreciation	27,075		31,617
Stock-based compensation	5,511,152		211,349
Accretion and interest on notes payable (note 10)	43,282		166,460
Interest expense on credit revolver and suppliers (note 8)	125,661		57,110
Fair value adjustment on restructuring of note payable (note 10)	-		9,977
Unrealized foreign exchange gain on notes payable (note 10)	(91,578)		(911,914)
Unrealized foreign exchange gain	48,417		-
Provision	-		(9,465)
Changes in non-cash working capital items:
Receivables and other assets	(87,767)		87,091
Accounts payable and other liabilities	(1,650,143)		864
Other taxes	154,189		(85,733)
Net cash provided by (used in) operating activities	(3,313,982)		(733,245)
Investing activities
Addition to exploration and evaluation assets	(5,365,659)		(568,010)
Purchase of property, plant and equipment	(21,027)		-
Net cash used in investing activities	(5,386,686)		(568,010)
Financing activities
Lease payments (notes 11 and 12)	(18,799)		(18,968)
(Repayment)/drawdown of revolving credit facility (note 8)	(1,330,579)		2,238,151
Payment of note payable (note 10)	(1,875,576)		(868,474)
Proceeds from warrants exercised	132,000		-
Issue of common shares (note 13)	39,380,157		-
Net cash provided by financing activities	36,287,203		1,350,709
Effect of exchange rate changes on cash held in foreign currency	(553,051)		(2,778)
Net increase in cash	27,033,484		46,676
Cash, beginning of period	13,543,024		103,640
Cash, end of period	$ 40,576,508	$	150,316

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

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