Southern Empire Resources : Interim Financial Report

Condensed Interim Consolidated Financial Statements

For the Three and Six Months Ended

April 30, 2022

(Unaudited - Expressed in Canadian Dollars)

Notice of Non-review of Condensed Interim Financial Statements

In accordance with the Canadian Securities Administrators' National Instrument 51-102 - Continuous Disclosure Obligations, Southern Empire Resources Corp. discloses that the accompanying condensed interim consolidated financial statements have been prepared by, and are the responsibility of, the Company's management.

The attached condensed interim consolidated financial statements for the three and six months ended April 30, 2022 have have been reviewed and approved by Southern Empire's Audit Committee and the Board of Directors but have not been reviewed by Southern Empire's auditors.

Southern Empire Resources Corp.

Statements of Financial Position (See Note 1 - Nature of operations) (Expresed in Canadian dollars)

			April 30			October 31
			2022			2021
ASSETS
Current assets
Cash	$	63,830	$	29,320
Equity investments, at fair value (Note 3)			4,486,314			4,021,814
Accounts receivable			38,295			17,710
Prepaids and advances			26,762			77,728
Non-current assets			4,615,201			4,146,572
Reclamation bonds (5)			87,459			87,459
Equipment (4)			17,459			20,539
Exploration and evaluation assets (Note 5)			11,784,701			10,626,740
Total assets	$	16,504,820	$	14,881,310
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities	$	412,966	$	576,280
Total liabilities			412,966			576,280
EQUITY
Common shares (Note 7)			15,594,070			14,850,332
Contributed surplus (Note 7)			1,745,774			1,117,442
Deficit			(1,247,990)			(1,662,744)
Total equity			16,091,854			14,305,030
Total liabilities and equity	$	16,504,820	$	14,881,310

Approved on behalf of the Board
"Ron Netolitzky"	"Dale Wallster"
Director	Director

The accompanying notes are an integral part of these financial statements

Southern Empire Resources Corp.

Statements of Loss and Comprehensive Loss

(Expressed in Canadian dollars)

For the three months

ended April 30

2022 2021

For the six months

ended April 30

2022 2021

Expenses
Amortization		1,540		2,200		3,081		44,401
Management and consulting fees (Note 6)		126,000		126,000		252,000		252,000
Business and investor relations		31,233		120,927		50,612		257,815
General and administration		19,896		2,193		41,636		20,996
Professional fees		20,933		10,884		34,154		14,149
Property research		5,797		27,215		16,394		27,215
Stock-based compensation (Note 6)		70,878		133,521		70,878		133,521
Transfer agent and listing fees		14,782		11,624		23,657		13,789
Travel and accomodation		-		-		-		-
Shareholder communications		4,352		10,403		6,886		10,403
		295,411		444,967		499,298		734,289
Other items
Unrealized gain(loss) on marketable securities		2,199,476		(1,177,193)		728,627		1,381,462
Realized gain(loss) on sale of marketable securities		159,945				185,425
Net and comprehensive loss	$	2,064,010	$	(1,622,160)	$	414,754	$	647,173
Basic and diluted loss per share (Note 6)	$	0.03	$	(0.03)	$	0.01	$	0.01
Weighted average number of common shares
outstanding - diluted		63,372,800	50,906,800	60,009,079	50,906,800

The accompanying notes are an integral part of these financial statements

Southern Empire Resources Corp.

Statements of Changes in Equity

(Expressed in Canadian dollars)

	Attributable to the common shareholders
	Number of	Amount	Contributed		Deficit			Total Equity
	shares	$	Surplus
Balance, October 31, 2019	50,906,800	$ 14,850,332	$ 936,147	$	(48,508)			$ 15,737,971
Shares issued during the period	-	-	-		-			$	-
Cash issue costs	-	-	-		-			$	-
Warrants exercised	-	-	-		-			$	-
Stock options granted	-	-	133,521		-		$	133,521
Shares issued for asset acquisitio	-	-	-		-		$	-
Net loss	-	-	-		647,172	$	647,172
Balance, April 30, 2021	50,906,800	$ 14,850,332	$1,069,668	$	598,664	$ 16,518,664
	Number of	Amount	Contributed		Deficit			Total Equity
	shares	$	Surplus
Balance, October 31, 2021	50,906,800	$ 14,850,332	$1,117,442	$	(1,662,744)			$ 14,305,030
Stock options granted	-	-	70,778		-		$	70,778
Shares issued in the period	10,000,000	442,547	557,453		-		$	1,000,000
Share issue costs	-	(15,344)	-		-		$	(15,344)
Shares issued for asset
acquisition	500,000	60,000	-		-	$	60,000
Warrants exercised	1,766,000	234,535	-		-		$	234,535
Stock options exercised	200,000	22,000	-		-		$	22,000
Net income	-	-	-		414,754	$	414,754
Balance, April 30, 2022	63,372,800	$ 15,594,070	$1,745,673	$	(1,247,990)	$ 16,091,754

The accompanying notes are an integral part of these financial statements

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Southern Empire Resources Corp.

Statements of Cash Flows (expressed in Canadian dollars)

For the six months ended April 30,		2022		2021
Cash flows from Operating Activities
Net income (loss)	$	485,632	$	647,172
Items not affecting cash
Amortization		3,081		4,401
Share-based compensation		-		133,521
Unrealized (gain) loss on equity investments		(728,627)		(1,381,462)
Realized (gain) loss on sale of marketable securities		(185,425)		-
Net changes in non-cash working capital items
Accounts receivable		(20,585)		50,292
Prepaids		50,966		168,468
Accounts payable and accrued liabilities		(163,314)		(42,685)
		(558,272)		(420,293)
Cash flows from Investing Activities
Purchase of marketable securitieis		-		(127,389.00)
Sale of marketable securities		449,551
Increase in exploration and evaluation asset		(1,157,961)		(1,572,078)
		(708,410)		(1,699,467)
Cash flow from Financing Activities		1,301,192
Issuance of common shares			-
		-		-
		1,301,192		-
Net change in cash during the period		34,510		(2,119,760)
Cash, beginning of period		29,320		3,667,214
Cash, end of period	$	63,830	$	1,547,454

The accompanying notes are an integral part of these financial statements

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