Labrador Iron Mines : Condensed Interim Consolidated Financial Statements for the Three Months Ended June 30, 2022 and 2021

Labrador Iron Mines Holdings Limited

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Financial Statements For the Three Months ended June 30, 2022 and 2021 (Unaudited, expressed in Canadian dollars)

The Company's auditors have not reviewed the unaudited condensed interim consolidated financial statements

for the three months ended June 30, 2022 and 2021.

55 University Avenue, Suite 1805, Toronto, Ontario, Canada M5J 2H7

Tel: [phone] Fax: [phone]

Email:[e-mail]

Website: www.labradorironmines.ca

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Statements of Financial Position (Unaudited, expressed in Canadian dollars)

			June 30, 2022		March 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	96,906	$	309,205
Accounts receivable and prepaid expenses (Note 5)		15,706			23,882
Total current assets		112,612			333,087
Non-current assets
Restricted cash (Note 6)		28,732			28,703
Prepaid expenses		102,708			102,708
Exploration and evaluation assets (Note 7)		26,497,972			26,497,972
Property, plant and equipment (Note 8)		1			1
Total non-current assets		26,629,413			26,629,384
Total assets	$	26,742,025	$	26,962,471
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities (Notes 9, 17 and 18)	$	646,789	$	638,453
Total current liabilities		646,789			638,453
Non-current liabilities
Accrued liabilities (Notes 9 and 18)		231,250			231,250
CEBA loan (Note 10)		40,000			40,000
Total non-current liabilities		271,250			271,250
Total liabilities		918,039			909,703
SHAREHOLDERS' EQUITY
Share capital (Note 12)		395,687,172			395,687,172
Reserves (Note 13)		1,032,363			1,028,641
Deficit		(383,109,851)			(382,919,850)
Non-controlling interest (Note 11)		12,214,302			12,256,805
Total shareholders' equity		25,823,986			26,052,768
Total liabilities and shareholders' equity		$	26,742,025		$	26,962,471
Going concern (Note 1)

Commitments and contingencies (Note 16)

Subsequent event (Note 20)

The financial statements were approved by the Board of Directors on August 11, 2022 and signed on its behalf by:

Signed "John F. Kearney"		Signed "Danesh Varma"
Director		Director

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

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited, expressed in Canadian dollars)

	Three months ended		Three months ended
		June 30, 2022		June 30, 2021
Operating expenses
Site costs		$	(72,302)	$	(59,643)
Loss before the undernoted			(72,302)			(59,643)
Corporate and administrative costs (Note 10)			(157,061)			(144,357)
Share based compensation (Note 14)			(3,722)			(52,288)
Accretion			-			(612)
Interest earned			581			447
			(160,202)			(196,810)
Net comprehensive loss for the period			(232,504)			(256,453)
Net comprehensive loss attributable to:
Shareholders of Labrador Iron Mines Holdings Limited			(190,001)			(228,457)
Non-controlling interest (Note 11)			(42,503)			(27,996)
	$		(232,504)	$	(256,453)
Net loss per share
Basic and diluted	$		(0.00)	$	(0.00)
Weighted average number of shares outstanding
Basic and diluted			162,364,427			162,364,427

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

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Statements of Cash Flows (Unaudited, expressed in Canadian dollars)

	Three months ended		Three months ended
	June 30, 2022		June 30, 2021
Cash (used in) operating activities
Net (loss) for the period	$	(232,504)	$	(256,453)
Items not involving cash
Accretion		-			612
Accrued interest		(29)			353
Share based compensation (Note 14)		3,722			52,288
Changes in working capital		16,512			(9,861)
Cash (used in) operating activities		(212,299)			(213,061)
Cash provided by investing activities
Proceeds from the assignment of rights		-			250,000
Investment in exploration and evaluation assets (Note 7)		-			(7,575)
Cash provided by investing activities		-			242,425
Change in cash and cash equivalents		(212,299)			29,364
Cash and cash equivalents, beginning of period		309,205			328,056
Cash and cash equivalents, end of period	$	96,906	$	357,420
Cash and cash equivalents consist of:
Cash	$	96,729	$	357,218
Cash equivalents		177			202
	$	96,906	$	357,420

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

LABRADOR IRON MINES HOLDINGS LIMITED

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Unaudited, expressed in Canadian dollars)

											Non-Controlling			Shareholders'
	Share Capital			Reserves			Deficit			Interest			Equity
	Number		Amount			Amount			Amount			Amount			Total
Balance, March 31, 2021	162,364,427	$	395,687,172	$	699,491	$	(382,609,000)	$	12,044,109	$	25,821,772
(Loss) for the period	-		-			-			(228,457)			(27,996)			(256,453)
Vesting of RSUs	-		-			52,288			-			-			52,288
Balance, June 30, 2021	162,364,427		395,687,172			751,779			(382,837,457)			12,016,113			25,617,607
Vesting of RSUs	-		-			276,862			-			-			276,862
(Loss) for the period	-		-			-			(82,393)			240,692			158,299
Balance, March 31, 2022	162,364,427		395,687,172			1,028,641			(382,919,850)			12,256,805			26,052,768
Vesting of RSUs	-		-			3,722			-			-			3,722
(Loss) for the period	-		-			-			(190,001)			(42,503)			(232,504)
Balance, June 30, 2022	162,364,427	$	395,687,172		$	1,032,363		$	(383,109,851)		$	12,214,302		$	25,823,986

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