TriStar Gold : Interim Financial Report

TRISTAR GOLD, INC.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited)

(Expressed in United States Dollars)

For the three and nine month periods ended September 30, 2021 and 2020

Reader's Note: These condensed consolidated interim financial statements for the three and nine month periods ended September 30, 2021 and 2020 of TriStar Gold, Inc. have been prepared by management and have not been reviewed by the Company's auditor.

TriStar Gold, Inc.

Condensed Consolidated Interim Statements of Financial Position

(Unaudited)

(Expressed in United States Dollars)

	September 30, 2021	December 31, 2020
Assets
Current assets:
Cash and cash equivalents (Note 6)	$	6,237,101	$	10,022,590
Accounts receivable		9,709		25,570
Prepaid expenses		141,775		158,469
Total current assets		6,388,585		10,206,629
Non-current assets:
Mineral properties and deferred expenditures (Note 7)		21,433,007		18,985,590
Plant and equipment, net (Note 8)		18,951		42,686
Total non-current assets		21,451,958		19,028,276
Total assets	$	27,840,543	$	29,234,905

Liabilities and Shareholders' equity

Current liabilities:

Accounts payable and accrued liabilities Total current liabilities

Non-current liabilities: Provisions (Note 9) Warrants liability (Note 10)

Total non-current liabilities Total liabilities

$ 233,609 $ 528,711

233,609528,711

231,883233,205

3,136,5173,212,827

3,368,4003,446,032

3,602,0093,974,743

Shareholders' equity:
Share capital (Note 11)	52,412,971		52,356,302
Capital reserve (Note 11, Note 13, Note 14 and Note 17)	3,946,113		3,864,330
Accumulated deficit	(32,120,550)		(30,960,470)
Total shareholders' equity	24,238,534		25,260,162
Total liabilities and shareholders' equity	$ 27,840,543	$	29,234,905
Nature of Operations and Going Concern (Note 2)
Commitments and Contingencies (Note 18)
Approved on behalf of the Board of Directors.	Director: "Mark E. Jones, III"
	Director: "Nicholas Appleyard"

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

TriStar Gold, Inc.

Condensed Consolidated Interim Statements of Comprehensive Loss

(Unaudited)

(Expressed in United States Dollars)
		Three months ended		Nine months ended
	September 30,	September 30,	September 30,	September 30,
	2021	2020		2021		2020
Expenses:
General and administrative (Note 9, Note15 and	$	296,208	$	344,166	$	1,273,991	$	1,014,600
Note 17)
Foreign exchange (gain) losses		78,641		(171,948)		(35,861)		(193,428)
		374,849		172,218		1,238,130		821,172
Other income (expenses):
Warrants liability fair value change (Note 10)		(385,631)		157,153		73,392		(1,823,137)
Bank charges		(1,393)		(1,685)		(4,700)		(4,859)
Loss on equipment disposal (Note 8)		-		(202)		-		(202)
Interest income		1,893		17,228		9,358		55,964
		(385,131)		172,494		78,050		(1,772,234)
Net income (loss) and comprehensive income
(loss) for the period	$	(759,980)	$	276	$	(1,160,080)	$	(2,593,406)
Basic and diluted income (loss) per share (Note 16)
$	(0.00)	$	0.00	$	(0.00)	$	(0.01)
Basic and diluted weighted-average number of
shares outstanding (Note 16)	229,960,372	222,008,830	229,932,625	202,561,023

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

TriStar Gold, Inc.

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity

(Unaudited)

(Expressed in United States Dollars)

Balance at December 31, 2020

Shares issued on exercise of warrants (Note 10 and Note 11) Stock-based compensation (Note 11, Note 13, Note 14 and Note 17) Net loss and comprehensive loss for the period

Balance at September 30, 2021

			Deficit and
			Accumulated
Common Shares		Other	Total
Capital	Comprehensive	Shareholders'
Number	Amount	Reserve	Loss	Equity
229,685,372	$ 52,356,302	$ 3,864,330	$ (30,960,470)	$ 25,260,162
275,000	56,669	-	-	56,669
-	-	81,783	-	81,783
-	-	-	(1,160,080)	(1,160,080)
229,960,372	$ 52,412,971	$ 3,946,113	$ (32,120,550)	$ 24,238,534

				Deficit and
				Accumulated
	Common Shares		Other	Total
	Capital	Comprehensive	Shareholders'
	Number	Amount	Reserve	Loss	Equity
Balance at December 31, 2019	189,954,440	$ 45,072,223	$ 4,791,167	$ (30,835,196)	$ 19,028,194
Shares issued in financing; net of share issue costs (Note 11)	30,705,000	4,496,496	-	-	4,496,496
Shares issued on exercise of options (Note 11 and Note 13)	4,570,000	1,549,318	(903,196)	-	646,122
Shares issued on exercise of warrants (Note 10 and Note 11)	2,938,182	862,762	-	-	862,762
Stock-based compensation (Note 11, Note 13 and Note 14)	-	-	18,872	-	18,872
Net loss and comprehensive loss for the period	-	-	-	(2,593,406)	(2,593,406)
Balance at September 30, 2020	228,167,622	$ 51,980,799	$ 3,906,843	$ (33,428,602)	$ 22,459,040

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

TriStar Gold, Inc.

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited)

(Expressed in United States Dollars)
	For the three months ended		For the nine months ended
	September 30,	September 30,	September 30,	September 30,
		2021		2020		2021		2020
Operating activities
Net income (loss) for the period	$	(759,980)	$	276	$	(1,160,080)	$	(2,593,406)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depreciation (Note 8)		345		383		1,135		1,368
Stock-based compensation (Note 11, Note 13 and Note 14)		-		-		81,783		18,872
Warrants liability fair value change (Note 10)		385,631		(157,153)		(73,392)		1,823,137
Disposal of equipment net value (Note 8)		-		202		-		202
Changes in non-cash operating working capital:
Accounts receivable		4,988		30,417		15,861		(4,738)
Prepaid expenses		(8,497)		(852)		16,694		100,981
Accounts payable and accrued liabilities		(19,281)		77,178		(295,103)		(353,191)
Provisions (Note 9)		(22,942)		(7,046)		(1,322)		(81,820)
Net cash used in operating activities		(419,736)		(56,595)		(1,414,424)		(1,088,595)
Investing activities
Mineral properties acquisition and exploration (Note 7)		(798,127)		(607,735)		(2,410,895)		(2,570,295)
Purchase of equipment (Note 8)		(2,971)		(2,480)		(13,922)		(8,943)
Net cash used in investing activities		(801,098)		(610,215)		(2,424,817)		(2,579,238)
Financing activities
Net proceeds from financing (Note 11)		-		6,186,505		-		6,186,505
Net proceeds from exercise of options (Note 11 and Note 13)		-		155,095		-		646,122
Net proceeds from exercise of warrants (Note 10 and Note 11)		-		705,064		53,752		742,679
Proceeds from sale of Royalty (Note 7)		-		-		-		1,500,000
Net cash provided by financing activities		-		7,046,664		53,752		9,075,306
Net increase (decrease) in cash and cash equivalents		(1,220,834)		6,379,854		(3,785,489)		5,407,473
Cash and cash equivalents, beginning of period		7,457,935		4,568,748		10,022,590		5,541,129
Cash and cash equivalents, end of period	$	6,237,101	$	10,948,602	$	6,237,101	$	10,948,602

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