Forsys Metals : Q3 Financial Statements 2021

Forsys Metals Corp.

Condensed Interim Consolidated Financial Statements

September 30, 2021 (expressed in Canadian dollars) (unaudited)

Management's Comments on Unaudited Condensed Interim Consolidated Financial Statements

These unaudited condensed interim consolidated financial statements of Forsys Metals Corp. (the "Company") have been prepared by management and approved by the Board of Directors of the Company.

These unaudited condensed interim consolidated financial statements have not been reviewed by the Company's external auditors.

Forsys Metals Corp.

Consolidated Statement of Financial Position

(expressed in Canadian dollars)
(unaudited)	As at	As at
	September 30,	December 31,
	2021	2020
Notes	$	$

Assets
Current		11,684,840	876,967
Cash and cash equivalents
Receivables		29,472	26,031
Prepaid expenses and other assets		24,173	20,489
Non-current		11,738,485	923,487
4	2,490,753	2,573,967
Investment in associate
Exploration and evaluation	5	10,425,824	10,698,359
Total assets		24,655,062	14,195,813
Liabilities
Current		58,230	142,808
Accounts payable and accrued liabilities
Shareholders' equity	6	172,148,128	165,838,742
Share capital
Warrants	7	6,771,226	1,300,733
Contributed surplus		46,987,780	44,449,715
Equity reserve		33,364	33,364
Accumulated loss		(183,803,731)	(180,458,038)
Accumulated other comprehensive loss		(17,544,257)	(17,115,896)
Total equity attributable to shareholders of the Company		24,592,510	14,048,620
Non-controlling interest	9	4,322	4,385
Total equity		24,596,832	14,053,005
Total liabilities and equity		24,655,062	14,195,813
Subsequent event	14
On behalf of the Board:
Martin Rowley	Mark Frewin
Director	Director

1

The above consolidated statement should be read in conjunction with the accompanying notes.

Forsys Metals Corp.

Consolidated Statement of Loss and Comprehensive Loss

(expressed in Canadian dollars) (unaudited)

		3 months ended	9 months ended
			September 30,		September 30,
		2021	2020	2021	2020
	Notes	$	$	$	$
Expenses		58,585	82,737	119,801	131,033
Professional fees
Directors' fees		141,648	32,000	268,118	113,280
Consulting fees		132,370	54,850	279,001	181,948
Stock-based compensation	8	-	-	2,585,000	-
Public company costs		9,504	7,851	99,578	43,415
General and administrative		13,517	7,619	21,918	17,148
Travel		-	6,067	-	6,067
Foreign exchange loss (gain)		(25,624)	-	(24,550)	(1,031)
Other income		(3,110)	(70)	(3,110)	(1,366)
		326,890	191,053	3,345,756	490,494
Loss		(326,890)	(191,053)	(3,345,756)	(490,494)
Other comprehensive loss, net of taxes
Item that may be reclassified subsequently to	loss	(464,286)	206,354	(428,361)	(1,998,819)
Foreign currency translation
Comprehensive loss		(791,176)	15,301	(3,774,117)	(2,489,314)
Net loss attributable to:		(326,870)	(191,053)	(3,345,693)	(490,494)
Shareholders of the Company
Non-controlling interest	9	-	-	(63)	-
		(326,870)	(191,053)	(3,345,756)	(490,494)
Comprehensive loss attributable to:		(791,176)	15,301	(3,774,054)	(2,489,314)
Shareholders of the Company
Non-controlling interest	9	-	-	(63)	-
		(791,176)	15,301	(3,774,117)	(2,489,314)
Loss per share		(0.17)	(0.11)	(1.83)	(0.30)
- basic and diluted (cents)
Weighted average number of
common shares outstanding		193,249,467	166,899,467	182,735,104	165,635,731

2

The above consolidated statement should be read in conjunction with the accompanying notes.

Forsys Metals Corp.

Consolidated Statement of Changes in Equity

(expressed in Canadian dollars) (unaudited)

	9 months ended September 30,
		2021	2020
Share capital	Notes	$	$
Balance, beginning of period		165,838,742	164,847,132
Bought deal equity financing	6	13,000,000	-
Fair value of unit warrants issued	6 and 7	(4,737,000)	-
Fair value of broker warrants issued	6 and 7	(759,000)	-
Private placement of Class A shares		-	1,000,000
Share issue costs		(1,379,056)	(8,390)
Exercise of warrants		52,500	-
Fair value of exercised warrants		25,507	-
Exercise of stock options		59,500	-
Fair value of exercised stock options		46,935	-
Balance, end of period		172,148,128	165,838,742
Warrants
Balance, beginning of period		1,300,733	1,300,733
Fair value of unit warrants issued	6 and 7	4,737,000	-
Fair value of broker warrants issued	6 and 7	759,000	-
Fair value of exercised warrants		(25,507)	-
Balance, end of period		6,771,226	1,300,733
Contributed surplus
Balance, beginning of period		44,449,715	44,449,715
Stock-based compensation	8	2,585,000	-
Fair value of exercised stock options		(46,935)	-
Balance, end of period		46,987,780	44,449,715
Equity reserve
Balance, beginning and end of period		33,364	33,364
Accumulated loss
Balance, beginning of period		(180,458,038)	(179,694,340)
Loss attributable to shareholders of the Company		(3,345,693)	(490,494)
Balance, end of period		(183,803,731)	(180,184,834)
Accumulated other comprehensive loss
Balance, beginning of period		(17,115,896)	(16,198,230)
Currency translation differences on foreign operations		(428,361)	(1,998,819)
Balance, end of period		(17,544,257)	(18,197,049)
Non-controlling interest
Balance, beginning of period		4,385	(169,376)
Reallocation of NCI share of accumulated losses		-	175,031
Loss attributed to NCI		(63)	-
Balance, end of period		4,322	5,655

3

The above consolidated statement should be read in conjunction with the accompanying notes.

Forsys Metals Corp.

Consolidated Statement of Cash Flows

(expressed in Canadian dollars) (unaudited)

	9 months ended September 30,
		2021	2020
Cash (used in)	Notes	$	$
Operating activities		(3,345,756)	(490,494)
Loss
Item not affecting cash	8	2,585,000	-
Stock-based compensation
Changes in non-cash operating working capital		(3,441)	(7,032)
Receivables
Prepaid expenses and other assets		(3,684)	30
Accounts payable and accrued liabilities		(84,579)	(29,543)
Total cash outflow from operating activities		(852,460)	(527,039)
Financing activities	6	13,000,000	-
Bought deal equity financing
Private placement of Class A shares		-	1,000,000
Share issue costs		(1,379,056)	(8,390)
Exercise of warrants		52,500	-
Exercise of stock options		59,500	-
Total cash inflow from financing activities		11,732,944	991,610
Investing activities		(53,391)	(23,308)
Exploration and evaluation
Total cash outflow from investing activities		(53,391)	(23,308)
Net increase in cash		10,827,094	441,263
Cash and cash equivalents, beginning of period		876,967	712,652
Effects of exchange rate changes on cash		(19,221)	(81,460)
Cash and cash equivalents, end of period		11,684,840	1,072,455

4

The above consolidated statement should be read in conjunction with the accompanying notes.