Q3 2020 Financial Statements

INTERIM CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

FOR THE NINE MONTHS ENDED

SEPTEMBER 30, 2021 AND 2020

(UNAUDITED - EXPRESSED IN CANADIAN

DOLLARS)

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying interim condensed consolidated financial statements of Treasury Metals Inc. were prepared by management in accordance with International Financial Reporting Standards. The most significant of these standards have been set out in the Note 2 of these interim condensed consolidated financial statements. Any applicable changes in accounting policies have also been disclosed in these financial statements. Management acknowledges responsibility for the preparation and presentation of the financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances.

The Board of Directors is responsible for ensuring management fulfills its financial reporting responsibilities and for reviewing and approving the financial statements together with other financial information. The Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the internal controls over the financial reporting process and the period end 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 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.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate control over its financial reporting. Management conducted an evaluation of the effectiveness of internal control over financial reporting based on "Internal Control Over Financial Reporting Guidance for Smaller Public Companies" issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the Company's internal control over financial reporting was effective as at September 30, 2021.

CONCLUSION RELATING TO DISCLOSURE CONTROLS AND PROCEDURES

An evaluation was performed under the supervision and with the participation of management, including the Chief Executive and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures as defined in the National Instrument 52-109. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the design and operation of the Company's disclosure controls and procedures were effective as at September 30, 2021.

NOTICE TO READER

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

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

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

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

TREASURY METALS INC.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED - EXPRESSED IN CANADIAN DOLLARS)

September 30,	December 31,
2021	2020

Assets
Current Assets	$	9,874,479
Cash and cash equivalents (Note 4)
Accounts receivable and prepaid expenses (Note 5)		1,221,830
Investments - current (Note 6)		799,555
		11,895,864
Non-current investments (Note 6)		-
Property and equipment (Note 7)		2,583,514
Mineral properties and related deferred costs (Note 8)		183,954,446
	$	198,433,824

$ 4,437,345 719,680 1,022,315

6,179,340

437,500

2,548,145

173,724,630

$ 182,889,615

Liabilities
Current Liabilities		$	3,234,361
Accounts payable and accrued liabilities (Note 10)	$	1,193,650
Short-term debt and current portion of long-term debt (Note 11)	-			3,642
Non-cash derivative liability (Note 11)				960,993			3,680,193
Unrenounced flow-through share premium				1,023,000			-
				5,218,354			4,877,485
Long-term debt (Note 11)				5,229,056			4,959,393
				10,447,410			9,836,878
Shareholders' Equity				203,485,577
Capital stock (Note 12)						187,969,705
Contributed surplus (Note 14 & Note 15)				24,500,828			23,655,291
Deficit				(39,110,074)			(38,342,602)
Accumulated other comprehensive loss				(889,917)			(229,657)
				187,986,414			173,052,737
		$	198,433,824	$	182,889,615
Nature of Operations and Going Concern (Note 1)
Commitments and Contractual Obligations and Contingencies (Note 17)
Subsequent Events (Note 19)
SIGNED ON BEHALF OF THE BOARD
(Signed) "Marc Henderson"	(Signed) "Flora Wood"
Director		Director

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

TREASURY METALS INC.

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

		Three Months Ended			Nine Months Ended
		September 30			September 30
		2021			2020			2021			2020
Expenses	$	268,804				$	997,288
Administrative, office and shareholder services	$	275,167	$	910,702
Professional fees		164,233			133,531			297,022			192,546
Salary and benefits		316,875			300,546			1,096,280			616,545
Stock-based compensation (Note 15)		104,037			50,259			661,765			281,729
Accretion and amortization of long-term debt		75,805						221,238
transaction costs (Note 11)				69,822					183,830
Interest and financing costs		123,464			177,310			361,773			485,954
Foreign exchange loss (gain)		143,077			(110,263)			14,409			117,387
Loss on debt modification (Note 11)		-			-			47,097			-
Fair value loss (gain) in non-cash derivative		(673,479)			(361,815)			(2,929,400)			2,535,343
liability (Note 11)
Loss before income tax		(522,816)			(534,557)			(767,472)			(5,324,036)
Deferred income tax recovery		-			-			-			259,375
Net Loss for the period	$	(522,816)		$	(534,557)		$	(767,472)		$	(5,064,661)
Gain per share - basic and diluted	$	0.00	$	(0.01)	$	(0.01)	$	(0.08)
Weighted average number of shares		130,186,424						121,743,581
outstanding				88,805,071					67,443,105

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

TREASURY METALS INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE LOSS (UNAUDITED - EXPRESSED IN CANADIAN DOLLARS)

		Three Months Ended		Nine Months Ended
		September 30		September 30
		2021		2020		2021		2020
Net loss for the period	$	(522,816)	$	(534,557)	$	(767,472)	$	(5,064,661)
Other comprehensive income (loss)
Unrealized loss on equity investments, net of		(133,563)				(660,260)
taxes			(80,258)			(72,340)
Realized loss on sale of FVTOCI investments		-		-		-		(747)
Cancellation of Platinex Inc. warrants		-				-
(Note 6)			(84,978)			(84,978)
Other comprehensive loss for the period		(133,563)		(165,236)		(660,260)		(158,065)
Total comprehensive loss for the period	$	(656,379)	$	(699,793)	$	(1,427,732)	$	(5,222,726)

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