Kaizen Discovery : Consolidated financial statements as at March 31, 2022

Condensed Interim Consolidated Financial Statements of

Kaizen Discovery Inc.

For the three months ended March 31, 2022 and 2021

(Unaudited)

Condensed Interim Consolidated Financial Statements

Table of contents

Condensed interim consolidated statements of financial position ......................................................................... 1

Condensed interim consolidated statements of loss and comprehensive loss ..................................................... 2

Condensed interim consolidated statements of changes in shareholders' equity (deficit) .................................... 3

Condensed interim consolidated statements of cash flows .................................................................................. 4

Notes to the condensed interim consolidated financial statements ................................................................. 5-12

Condensed Interim Consolidated Statements of Financial Position

(Unaudited)

(Stated in thousands of Canadian dollars)

March 31,	December 31,
2022	2021
4,605	5,911
138	59
97	57
512	397
5,352	6,424
39	26
44	44
56	59
3,133	3,182
8,624	9,735
650	327
597	586
1,247	913
413	971
1,660	1,884
62,916	62,916
4,423	4,103
452	452
1,291	1,291
(782)	(744)
(61,336)	(60,167)
6,964	7,851
8,624	9,735
Description of business and going concern (Note 1)
Approved and authorized for issue on behalf of the Board on May 3, 2022:
/s/ Terry Krepiakevich	/s/ Eric Finlayson
Terry Krepiakevich, Director	Eric Finlayson, Director
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Notes

Assets Current assets

Cash

Short-term financial assets

Receivables

Prepaid expenses and deposits

$

10

Total current assets

Non-current assets

Financial assets

Other assets

Property, plant and equipment

Mineral properties

3

Total assets

$

Liabilities Current liabilities

Accounts payable and accrued liabilities

10

$

Provision

Total current liabilities

Non-current liabilities

Non-current provision Total liabilities

4

$

Shareholders' equity

Share capital 5

Share-based payment reserve 8 Other reserves

Share purchase warrants 5 Accumulated other comprehensive loss

Accumulated deficit

$

Total shareholders' equity

Total liabilities and shareholders' equity

$ $

See accompanying notes to the condensed interim consolidated financial statements.

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

(Unaudited)

(Stated in thousands of Canadian dollars, except for share and per share amounts)

Three months ended March 31,

See accompanying notes to the condensed interim consolidated financial statements.

Total other comprehensive loss for the period Total comprehensive loss for the period

Loss per share (basic and diluted)

Items that may be reclassified subsequently to loss:

Loss before income taxes Income taxes

Net loss for the period

Other comprehensive income (loss)

Items that will not be reclassified subsequently to loss:

2022	2021
(940)	(365)
(752)	(271)
(1,692)	(636)
10	1
(52)	103
(11)	(141)
(3)	(1)
579	610
(1,169)	(64)
-	-
(1,169)	(64)
13	11
(51)	(31)
(38)	(20)
(1,207)	(84)
(0.02)	(0.00)
Weighted average number of basic and diluted shares outstanding	65,828,426	34,355,482
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Notes

Operating expenses

Exploration expenses 6

Administrative expenses 7

Loss from operations

Other income (expenses)

Interest income

(Loss) gain on foreign exchange Interest expense

Depreciation expense

Other income

Change in fair value of marketable securities

Currency translation adjustment

$

4

$

$ $ $

Kaizen Discovery Inc.

Condensed Interim Consolidated Statements of Shareholders' Equity (Deficit)

(Unaudited)

(Stated in thousands of Canadian dollars, except for share amounts)

Number of shares

AccumulatedShare capital

Share-based payment reserve

Other reserves

Share other purchase comprehensive warrants lossAccumulated deficit

TotalBalance at January 1, 2021

Net loss for the period

34,355,482 $

48,576 $ - - -3,839 - - 92

$

452 $ - - -

891 $ - - -(740) $ -(55,878) (2,860)

- - - 34,355,482

(64) (64)

Other comprehensive loss Share-based payments Balance at March 31, 2021

(20) - (20)

- - 92

$

48,576

$

3,931

$

452

$

891

$

(760) $

(55,942) $

(2,852)

Other comprehensive loss Share-based payments

Net loss for the period

Balance at January 1, 2022

65,828,426 $ - - -62,916 $ - - -4,103 - - 320

$

452 $ - - -1,291 $ - - -(744) $ -(60,167) $

7,851

(1,169) (1,169)

(38) - (38)

- - 320

Balance at March 31, 2022

65,828,426

$

62,916

$

4,423

$

452

$

1,291

$

(782) $

(61,336) $

6,964

The number of common shares outstanding and per share amounts have been updated retrospectively to reflect the consolidation of the Company's common shares on a ratio of one post-consolidation common share for every ten pre-consolidation shares ("Consolidation") which became effective on December 9, 2021.

See accompanying notes to the condensed interim consolidated financial statements.

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