Soma Gold : Unaudited Interim Financial Statements for the period ended September 30, 2021

SOMA GOLD CORP.

(FORMERLY PARA RESOURCES INC.)

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED - EXPRESSED IN CANADIAN DOLLARS)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

NOTICE OF NO AUDITOR REVIEW OF

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim consolidated financial statements have been prepared by and are the responsibility of the management.

The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

Soma Gold Corp.

Condensed Interim Consolidated Statements of Financial Position (Unaudited - expressed in Canadian Dollars)

		September 30,	December 31,
		2021	2020
	Notes	$	$
ASSETS
Current assets
Cash and cash equivalents		755,541	2,418,987
Trade and other receivables	8	4,100,548	3,299,871
Inventory	9	4,622,894	5,020,168
Prepaids and deposits	10	1,415,911	866,973
Assets held for sale	16	-	2,217,937
Total current assets		10,894,894	13,823,936
Non-current assets
Notes receivable	15	31,899	-
Exploration and evaluation assets	11	3,563,863	720,624
Mineral properties, plant and equipment	12	19,862,945	17,849,028
Total non-current assets		23,458,707	18,569,652
TOTAL ASSETS		34,353,601	32,393,588
LIABILITIES
Current liabilities
Trade payables and accrued liabilities	13	9,769,838	8,748,675
Deferred revenue	14	1,912,091	2,701,892
Liabilities directly associated with assets held for sale	16	-	206,269
Promissory note	15	100,706	-
Total current liabilities		11,782,635	11,656,836
Non-current liabilities
Deferred income tax liability		1,510,626	1,647,000
Deferred revenue	14	1,586,199	2,667,211
Notes payable	15	17,910,378	15,670,002
Decommissioning and restoration provision	17	339,014	366,346
Contingent consideration	18	624,398	460,392
Total non-current liabilities		21,970,615	20,810,951
TOTAL LIABILITIES		33,753,250	32,467,787
SHAREHOLDERS' EQUITY
Share capital	21	47,918,589	46,960,618
Share option and warrant reserve	21	5,628,165	5,477,939
Contributed surplus		7,171,442	7,171,442
Deficit		(57,517,784)	(57,838,842)
Accumulated other comprehensive loss		(2,600,061)	(1,845,356)
Equity attributable to shareholders		600,351	(74,199)
TOTAL LIABILITIES AND EQUITY		34,353,601	32,393,588

Nature of operations (Note 1)

Subsequent events (Note 25)

On behalf of the Board of Directors:

"Geoffrey Hampson"	"Yannis Tsitos"
Geoffrey Hampson (Director)	Yannis Tsitos (Director)

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

Soma Gold Corp.

Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) For the Three and Nine Months Ended September 30, 2021 and 2020

(Unaudited - expressed in Canadian Dollars)

		Three months ended	Nine months ended
		September 30,	September 30,	September 30,	September 30,
		2021	2020	2021	2020
Notes	$	$	$	$
Revenues		11,258,071	11,056,402	29,370,392	12,646,760
Cost of sales	19	(6,292,816)	(5,951,039)	(19,655,391)	(7,748,022)
Income from mine operations		4,965,255	5,105,363	9,715,001	4,898,738
Staffing and management costs		776,279	932,817	2,200,810	1,826,695
Other general and administration		293,234	188,472	787,762	409,018
Professional and consulting fees		54,409	684,539	473,472	1,441,061
Investor relations		138,747	152,892	263,416	448,747
Share-based compensation		11,543	331,874	188,227	334,374
Depreciation		2,217	6,817	14,797	20,027
Income before other items		3,688,826	2,807,952	5,786,517	418,817
Finance costs		(1,393,963)	(583,056)	(4,016,315)	(1,761,058)
Other gains (losses)	20	12,987	(23,042)	959,174	(694,688)
Foreign exchange loss		(232,326)	(112,999)	(44,206)	(294,994)
Income (loss) for the period before tax		2,075,525	2,088,856	2,685,170	(2,331,922)
Current income tax expense		(952,825)	(2,090,900)	(2,545,015)	(1,516,717)
Deferred income tax recovery (expense)		(21,486)	669,672	179,483	197,900
Income (loss) for the period from continuing operations		1,101,214	667,628	319,638	(3,650,739)
Discontinued operations
Gain (loss) after tax for the period from	6	-	63	-	(458,159)
discontinued operations
Income (loss) for the period		1,101,214	667,691	319,638	(4,108,898)
Other comprehensive income (loss)
Item that may be reclassified subsequently to profit or loss:
Foreign currency translation adjustment		129,369	(549,806)	(753,285)	2,304,978
Realized gain (loss) on disposal of subsidiaries		-	15	-	(2,788,858)
Other comprehensive income (loss) for the period		129,369	(549,791)	(753,285)	(483,880)
Total comprehensive income (loss) for the period		1,230,583	117,900	(433,647)	(4,592,778)

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

Soma Gold Corp.

Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) For the Three and Nine Months Ended September 30, 2021 and 2020

(Unaudited - expressed in Canadian Dollars)

		Three months ended	Nine months ended
		September 30,	September 30,	September 30,	September 30,
		2021	2020	2021	2020
	Notes	$	$	$	$
Income (loss) for the period attributable to:
Owners of the parent		1,101,214	740,010	319,638	(3,861,140)
Non-controlling interest		-	(72,319)	-	(247,758)
		1,101,214	667,691	319,638	(4,108,898)
Total comprehensive income (loss) for the
period attributable to:
Owners of the parent		1,230,583	223,122	(433,647)	(4,763,400)
Non-controlling interest		-	(105,222)	-	170,622
		1,230,583	117,900	(433,647)	(4,592,778)
Earnings (loss) per common share
Basic	24	0.02	0.01	0.01	(0.10)
Diluted	24	0.02	0.01	0.00	(0.10)
Weighted average number of common shares outstanding
Basic	24	64,370,462	59,032,494	63,156,699	40,006,577
Diluted	24	70,917,761	76,029,526	71,658,044	40,006,577

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