Endurance Gold : Annual Financial Statements for the year ended December 31, 2023

2023 ANNUAL FINANCIAL REPORT December 31, 2023 and 2022

(Expressed in Canadian dollars)

Independent Auditor's Report

Consolidated Financial Statements

• Consolidated Statements of Financial Position
• Consolidated Statements of Comprehensive Loss
• Consolidated Statements of Changes in Equity
• Consolidated Statements of Cash Flows
• Notes to Consolidated Financial Statements

Independent Auditor's Report

To the Shareholders of Endurance Gold Corporation

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Endurance Gold Corporation (the "Company"), which comprise the consolidated statements of financial position as at December 31, 2023 and 2022, and the consolidated statements of comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects the financial position of the Company as at December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS).

Basis for Opinion

We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audits of the consolidated financial statements in Canada, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 in the consolidated financial statements, which indicates that the Company has incurred losses since inception, has no recurring source of revenue, and has an accumulated deficit of $11,648,002 and net working capital of $2,293,010 as at December 31, 2023. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

In addition to the matter described in Material Uncertainty Related to Going Concern section, we have determined that there is the following key audit matter to communicate in our auditor's report:

Key audit matter:

How our audit addressed the key audit matter:

Assessment of impairment indicators of Exploration and evaluation assets.

Our approach to addressing the matter included the following procedures, among others:

Refer to note 3(d) - Accounting policy: Exploration and evaluation assets; note 3(p) - Significant accounting judgments and estimates; and note 8 - Exploration and evaluation assets

Management assesses at each reporting period whether there is an indication that the carrying value of exploration and evaluation assets may not be recoverable. Management applies significant judgment in assessing whether indicators of impairment exist that necessitate

Evaluated the reasonableness of management's assessment of impairment indicators, which included the following:

• Assessed the Company's market capitalization in comparison to the Company's net assets, which may be an indication of impairment.
• Assessed the completeness of the factors that could be considered indicators of impairment, including

impairment testing. Internal and external factors, such as

1. a significant decline in the market value of the Company's share price; (ii) changes in the Company's assessment of whether commercially viable quantities of mineral resources exist within the properties; and (iii) changes in metal prices, capital and operating costs, are evaluated by management in determining whether there are any indicators of impairment.
   We considered this a key audit matter due to (i) the significance of the exploration and evaluation asset balance and (ii) the significant audit effort and subjectivity in applying audit procedures to assess the factors evaluated by management in its assessment of impairment indicators, which required significant management judgment.

consideration of evidence obtained in other areas of the audit.

• Confirmed that the Company's right to explore the properties had not expired.
• Obtained management's written representations regarding the Company's future plans for the exploration and evaluation assets.
• Assessed the reasonability of the Company's overall financial statement disclosure in respect to its exploration and evaluation assets.

Other Information

Management is responsible for the other information. The other information comprises the information included in "Management's Discussion and Analysis", but does not include the consolidated financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audits of the consolidated financial statements, our responsibility is to read the other information, and in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audits or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure, and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is William Nichols.

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, BC, Canada

April 29, 2024

ENDURANCE GOLD CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Expressed in Canadian dollars)

AS AT

		December 31,		December 31,
		2023		2022
ASSETS
Current
Cash and cash equivalents (Note 4)	$	401,761	$	1,862,445
Marketable securities (Note 5)		400,873		1,058,940
Prepaid expenses and deposits (Note 6)		28,067		25,497
Receivables (Note 7)		1,742,944		1,729,804
Total current assets		2,573,645		4,676,686
Non-current
Exploration and evaluation assets (Note 8)		9,538,659		7,279,937
Property and equipment (Note 9)		15,300		-
Reclamation bonds (Note 10)		130,000		37,000
Total non-current assets		9,683,959		7,316,937
Total assets	$	12,257,604	$	11,993,623
LIABILITIES
Current
Accounts payable and accrued liabilities (Notes 11 and 14)	$	280,635	$	171,522
Total liabilities		280,635		171,522
EQUITY
Share capital (Note 12)		20,117,807		18,950,971
Reserves (Note 12)		3,507,164		3,407,661
Deficit		(11,648,002)		(10,536,531)
		11,976,969		11,822,101
Total liabilities and equity	$	12,257,604	$	11,993,623
Nature of operations and going concern (Note 1)

Commitments (Note 19)

Events after the reporting date (Note 20)

Approved and authorized on behalf of the Board of Directors on April 29, 2024:

/s/ Robert T. Boyd	Director	/s/ J. Christopher Mitchell	Director
Robert T. Boyd		J. Christopher Mitchell

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

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ENDURANCE GOLD CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Year Ended December 31,

(Expressed in Canadian dollars)

		2023		2022
Expenses
Business development and property investigation (Note 14)	$	2,199	$	11,994
Corporate communications (Note 14)		250,089		244,773
Listing and transfer agent fees		29,910		24,621
Management fees (Note 14)		78,000		76,000
Office and administrative		90,625		88,751
Professional fees (Note 14)		38,831		53,596
Share-based compensation (Notes 12 and 14)		63,355		678,365
Loss from operations		(553,009)		(1,178,100)
Other items
Interest income		86,432		41,376
Gain (loss) on sale of marketable securities (Note 5)		(23,792)		1,710
Unrealized loss on marketable securities (Note 5)		(602,447)		(1,180,295)
Write-off of exploration and evaluation assets (Note 8)		(76,555)		(6,845)
Flow-through share premium received (Note 12)		57,900		-
		(558,462)		(1,144,054)
Comprehensive loss for the year
$	(1,111,471)	$	(2,322,154)
Basic and diluted loss per common share	$	(0.01)	$	(0.02)
Basic and diluted weighted average number of common shares outstanding		146,541,156		136,395,198

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

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ENDURANCE GOLD CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Year ended December 31,

(Expressed in Canadian dollars)

		Share Capital			Total
		No. of Shares	Amount	Reserves	Deficit	Equity
Balance at December 31, 2022	145,379,342	$18,950,971	$ 3,407,661	$ (10,536,531)	$11,822,101
Shares issued for:
Exploration and evaluation assets	960,000	192,000	-	-	192,000
Private placement	4,756,700	1,092,794	-	-	1,092,794
Share issuance costs	-	(60,058)	36,148	-	(23,910)
Flow-through premium	-	(57,900)	-	-	(57,900)
Share-based compensation	-	-	63,355	-	63,355
Comprehensive loss for the year	-	-	-	(1,111,471)	(1,111,471)

Balance at December 31, 2023

151,096,042

$20,117,807

$ 3,507,164

$ (11,648,002)

$11,976,969

		Share Capital			Total
		No. of Shares	Amount	Reserves	Deficit	Equity
Balance at December 31, 2021	127,120,990	$13,171,719	$ 2,339,536	$ (8,214,377)	$ 7,296,878
Shares issued for:
Exploration and evaluation assets	1,070,000	384,600	-	-	384,600
Exercise of stock options	1,700,000	113,000	-	-	113,000
Fair value of options exercised	-	95,000	(95,000)	-	-
Exercise of warrants	2,995,290	748,823	-	-	748,823
Private placement	12,493,062	4,643,169	451,167	-	5,094,336
Share issuance costs	-	(205,340)	33,593	-	(171,747)
Share-based compensation	-	-	678,365	-	678,365
Comprehensive loss for the year	-	-	-	(2,322,154)	(2,322,154)

Balance at December 31, 2022

145,379,342

$18,950,971

$ 3,407,661

$ (10,536,531)

$11,822,101

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

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ENDURANCE GOLD CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year ended December 31,

(Expressed in Canadian dollars)

		2023	2022
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Net loss for the year	$	(1,111,471)	$ (2,322,154)
Add adjustments:
Loss (gain) on sale of marketable securities		23,792	(1,710)
Share-based compensation		63,355	678,365
Unrealized loss on marketable securities		602,447	1,180,295
Write-off of exploration and evaluation assets		76,555	6,845
Flow-through share premium		(57,900)	-
Interest income		(86,432)	(41,376)
Changes in non-cash working capital items:
Prepaid expenses and deposits		(2,570)	327
Receivables		659,484	(92,311)
Accounts payable and accrued liabilities		24,934	21,702
Net cash from (used in) operating activities		192,194		(570,017)
CASH FLOWS FROM (TO) INVESTING ACTIVITIES
Exploration and evaluation assets		(2,711,930)	(3,896,504)
Proceeds from sale of marketable securities		31,828	5,760
Purchase of property and equipment		(18,000)	-
Reclamation bond		(93,000)	-
Interest received		69,340	24,927
Net cash used in from investing activities		(2,721,762)		(3,865,817)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital		1,092,794	5,956,159
Share issuance costs		(23,910)	(171,747)
Net cash from financing activities		1,068,884		5,784,412
Net change in cash and cash equivalents during the year		(1,460,684)	1,348,578
Cash and cash equivalents, beginning of year		1,862,445		513,867
Cash and cash equivalents, end of year	$	401,761	$ 1,862,445
Supplemental disclosures with respect to cash flows (Note 13)

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

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ENDURANCE GOLD CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Year ended December 31, 2023

1. NATURE OF OPERATIONS AND GOING CONCERN
   Endurance Gold Corporation (the "Company") was incorporated under the Canada Business Corporations Act on December 16, 2003 and continued into British Columbia on August 16, 2004. The head office and principal address of the Company is at Suite 1212, 666 Burrard Street, Vancouver, British Columbia, V6C 2X8. The Company's registered address and records office is Suite 1600, 925 West Georgia Street, Vancouver, British Columbia, V6C 3L2.
   The Company is engaged in the exploration and development of mineral properties in North America and has not yet determined whether its properties contain ore reserves that are economically recoverable. The Company has not generated revenue from operations and will need to seek additional financing to meet its exploration and development objectives. The mineral property exploration business involves a high degree of risk. The recoverability of the amounts expended on mineral interests by the Company is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of its mineral properties and upon future profitable production or proceeds from the disposition of its property interests.
   These consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, which assumes that the Company will be able to meet its commitments, continue operations, and realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses since inception and has no recurring source of revenue. At December 31, 2023, the Company had an accumulated deficit of $11,648,002 and net working capital of $2,293,010 which was inclusive of marketable securities with an estimated fair value of $400,873. These material uncertainties cast significant doubt upon the Company's ability to continue as a going concern.
   The Company's continuation as a going concern is dependent upon successful results from its exploration and evaluation activities, its ability to attain profitable operations to generate funds and/or its ability to raise equity capital or borrowings sufficient to meet its current and future obligations. Although the Company has been successful in the past in raising funds to continue operations, there is no assurance it will be able to do so in the future.
   These consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and statement of financial position classifications that would be necessary were the going concern assumption inappropriate, and these adjustments could be material.
2. BASIS OF PREPARATION

1. Statement of Compliance
   The consolidated financial statements of the Company for the year ended December 31, 2023, including comparative for the prior year, have been prepared using accounting policies in compliance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC").
   These consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiary; and were authorized for issue by the Audit Committee and Board of Directors on April 29, 2024.

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ENDURANCE GOLD CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Year ended December 31, 2023

2. BASIS OF PREPARATION - continued

1. Basis of Measurement
   These consolidated financial statements have been prepared on a historical costs basis except for financial instruments classified as financial instruments at fair value through profit or loss or available for sale, which are stated at their fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting.
   The preparation of these consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the application of policies and reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported expenses during the year. Although management uses historical experience and its best knowledge of the amounts, events or actions to form the basis for judgments and estimates, actual results could differ from these estimates. See also Note 3 (p).
2. Basis of Consolidation
   These consolidated financial statements include the accounts of the parent company, Endurance Gold Corporation, and its subsidiary as listed below:

	Jurisdiction	Nature of Operations	Equity Interest
Endurance Resources Inc.	2023	2022
Virginia, USA	Exploration	100%	100%

The financial statements of the Company's subsidiary are included in the consolidated financial statements from the date that control commences until the date that control ceases. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All inter-company balances and transactions have been eliminated.

3. MATERIAL ACCOUNTING POLICY INFORMATION

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, unless otherwise indicated.

1. Foreign currencies
   The functional currency of the Company and its subsidiary is the Canadian dollar and unless otherwise specified, all dollar amounts in these consolidated financial statements are expressed in Canadian dollar. The functional currency is the currency of the primary economic environment in which the entity operates and has been determined for each entity within the Company. The functional currency determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes in Foreign Exchange Rates.
   Transactions in currencies other than the Canadian dollar are recorded at exchange rates prevailing on the dates of the transactions. At the end of each reporting period, the monetary assets and liabilities of the Company that are denominated in foreign currencies are translated at the rate of exchange at the statement of financial position date while non-monetary assets and liabilities are translated at historical rates. Revenues and expenses are translated at the exchange rates approximating those in effect on the date of the transactions. Exchange gains and losses arising on translation are included in the consolidated statement of comprehensive loss.

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