Purepoint Uranium : Q1 2024 Financial Statement

Condensed Interim Financial Statements

March 31, 2024 and 2023

Condensed Interim Statements of Financial Position

As at March 31, 2024 and December 31, 2023

(Expressed in Canadian Dollars) (Unaudited)

March 31,	December 31,
2024	2023
$	$

Assets

Current assets
Cash	3,269,497	4,054,315
Accounts receivable	136,765	87,408
Receivable from projects (note 7)	29,848	57,619
Prepaid expenses	53,063	75,881
Deposits (note 8)	269,130	114,292
	3,758,303	4,389,515
Property, equipment and
Right of use asset (note 5)	62,372	71,224
	3,820,675	4,460,739
Liabilities
Current liabilities
Accounts payable and accrued liabilities	162,069	234,406
Current portion of lease liability (note 9)	30,689	35,000
	192,758	269,406
Long term portion of lease liability (note 9)	36,239	40,227
	228,997	309,633
Shareholders' equity
Share capital (note 10(a))	48,446,358	48,441,470
Contributed surplus	17,651,760	17,654,148
Deficit	(62,506,440)	(61,944,512)
	3,591,678	4,151,106
	3,820,675	4,460,739
Note 2: Basis of presentation and going concern

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

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Condensed Interim Statements of Loss and Comprehensive Loss

For the Three Months Ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

For the three-month period ended
	March 31,
2024	2023
$	$

Expenses
Mining exploration and evaluation expenditures (note 6)	477,443	2,152,559
Mining exploration and evaluation salaries and benefits	166,965	206,685
Investor relations	74,550	60,427
Salaries, compensations and benefits	66,800	56,050
Transfer agent and filing fees	23,728	34,953
Professional fees	11,737	29,159
Insurance	11,643	14,988
General and administration	6,156	8,211
Travel	9,491	4,031
Part XII.6 tax	27,136	-
	875,649	2,567,063
Other
Operator fees and other recoveries (note 7)	(271,163)	(256,158)
Interest income	(42,558)	(34,125)
	(313,721)	(290,283)
Net loss and comprehensive loss	(561,928)	(2,276,780)
Basic and diluted loss per common share (note 12)	(0.00)	(0.01)
Weighted average number of shares (note 12)	500,746,941	417,532,288
The accompanying notes are an integral part of these condensed financial statements.

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Condensed Interim Statements of Changes in Equity

For the Three Months Ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

	Share capital
	Number of		Contributed		Equity
	shares	Amount	surplus	Deficit	total
		$	$	$	$
Balance at January 1, 2024	500,722,765	48,441,470	17,654,148	(61,944,512)	4,151,106
Exercise of options	50,000	2,500	-	-	2,500
Fair value of exercised options	-	2,388	(2,388)	-	-
Net loss	-	-	-	(561,928)	(561,928)
Balance at March 31, 2024	500,772,765	48,446,358	17,651,760	(62,506,440)	3,591,678
Balance at January 1, 2023	417,532,288	46,018,773	15,148,193	(56,773,210)	4,393,756
Net loss	-	-	-	(2,276,780)	(2,276,780)
Balance at March 31, 2023	417,532,288	46,018,773	15,148,193	(59,049,990)	2,116,976
The accompanying notes are an integral part of these condensed financial statements.

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Condensed Interim Statements of Cash Flows

For the Three Months Ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

	For the three-month period ended
		March 31,
	2024	2023
	$	$
Cash flow from operating activities
Net loss for the period	(561,928)	(2,276,780)
Items not affecting cash:
Depreciation	8,852	8,863
Interest on lease liability	2,537	3,615
	(550,539)	(2,264,302)
Changes in non-cash items relating to operating activities:
Accounts receivable	(49,357)	(65,521)
Prepaid expenses	22,818	(12,384)
Deposits	(154,838)	1,642
Accounts payable and accrued liabilities	(72,338)	466,313
Advances (disbursements) from joint venturers, net	27,771	(538,839)
	(776,483)	(2,413,091)
Cash flow from financing activities
Proceeds from exercise of options, net of costs	2,500	-
Amount paid on lease liability	(10,835)	(10,836)
	(8,335)	(10,836)
Net decrease in cash	(784,818)	(2,423,927)
Cash - Beginning of the period	4,054,315	3,925,659
Cash - End of the period	3,269,497	1,501,732

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

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Notes to Condensed Interim Financial Statements

For the Three Months Ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

1. General Information

Purepoint Uranium Group Inc. ("the Company") is a Canadian resource company engaged in the acquisition, exploration and development of properties for the purpose of producing uranium. The Company's principal assets are mineral properties located in Saskatchewan. The ability of the Company to realize the costs it has incurred to date on these and other properties is dependent upon the discovery of economically recoverable reserves, the preservation of the Company's interest in the underlying mining claims, the ability to continue to raise adequate financing and to commence profitable operations in the future, or alternatively, upon the disposal of properties, or the Company's interests therein, on an advantageous basis.

The Company's head office is located at 120 Adelaide Street West, Suite 2500, Toronto, Ontario, M5H 1T1, Canada.

2. Basis of Presentation and Going Concern

These condensed interim financial statements have been prepared on a going concern basis. The going concern basis of presentation assumes that the Company will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business.

During the three months ended March 31, 2024, the Company incurred a net loss of $561,928 (2023

• $2,276,780), and as of that date, the Company's accumulated deficit was $62,506,440 (December 31, 2023 - $61,944,512). As at March 31, 2024, the Company had available working capital of $3,565,545 (December 31, 2023 - $4,120,109), including a cash balance of $3,269,497 (December 31, 2023 - $4,054,315), which it can deploy to fulfill financial requirements for the 9-month period ending December 31, 2024.

The ability of the Company to continue as a going concern is dependent on the successful completion of the actions taken or planned. In order to meet future expenditures and cover administrative costs, the Company will need to raise additional financing. Although the Company has been successful in raising funds to date, there can be no assurance that adequate funding will be available in the future, or available under terms favourable to the Company. These circumstances may cast significant doubt as to the Company's ability to continue as a going concern and ultimately the appropriateness of the use of accounting principles to a going concern.

These condensed interim financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. If the going concern basis was not appropriate for these condensed interim financial statements, then adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses, and the condensed interim statement of financial position classifications used.

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Notes to Condensed Interim Financial Statements

For the Three Months Ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

3. Significant Accounting Policies

(a) Statement of compliance

The accounting policies applied by the Company in these unaudited condensed interim financial statements are the same as those applied by the Company in its audited annual financial statements as at and for the year ended December 31, 2023. These unaudited condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all the information required for full annual financial statements and should be read in conjunction with the audited financial statements of the Company as at and for the year ended December 31, 2023.

The policies applied in these condensed interim financial statements are based on IFRS issued and outstanding as of May XX, 2024, the date the Board of Directors approved the condensed interim financial statements.

(b) Basis of preparation

The condensed interim financial statements are presented in Canadian dollars. The condensed interim financial statements are prepared on the historical cost basis.

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Notes to Condensed Interim Financial Statements

For the Three Months Ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

4. Significant Accounting Judgments and Estimates

The preparation of these condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. The condensed interim financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and the revision affects both current and future periods.

Significant assumptions about the future and other sources of estimation uncertainty that management has made at the end of the reporting period, that could have an effect on the amounts recognized in the condensed interim financial statements relate to, but are not limited to, the following:

Share-based payments

The Company grants options to certain individuals. Fair value is measured at the date of grant using the Black-Scholes option pricing mechanism. Management is required to make certain estimates when determining the fair value of stock option awards. These estimates affect the amount recognized as share-based payment expense in the condensed interim statements of loss and comprehensive loss.

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Notes to Condensed Interim Financial Statements

For the Three Months Ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

5. Property and Equipment

			Additions and
Cost		January 1,	Reductions	December 31,		Additions		March 31,
		2023		in 2023		2023		in 2024		2024
Exploration property and equipment
Field property and equipment	$	5,350	$	-	$	5,350	$	-	$	5,350
Furniture and equipment		28,373		-		28,373		-		28,373
Right of use assets		137,637		(31,958)		105,679		-		105,679
	$	171,360	$	(31,958)	$	139,402	$	-	$	139,402

		Depreciation and
Accumulated depreciation		January 1,	Reductions	December 31,	Depreciation		March 31,
		2023		in 2023		2023		in 2024		2024
Exploration property and equipment
Field property and equipment	$	4,752	$	119	$	4,871	$	24	$	4,895
Furniture and equipment		27,977		98		28,075		20		28,095
Right of use assets		137,637		(102,405)		35,232		8,808		44,040
	$	170,366	$	(102,188)	$	68,178	$	8,852	$	77,030

Net book value		March 31,	December 31,		January 1,
		2024		2023		2023
Exploration property and equipment
Field property and equipment	$	455	$	479	$	598
Furniture and equipment		278		298		396
Right of use assets		61,639		70,447		-
	$	62,372	$	71,224	$	994

In the three-month period ended March 31, 2024, $8,852 (2023 - $8,863) of depreciation expense was included in mining exploration and evaluation expenditures on the condensed interim statements of loss and comprehensive loss.

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Notes to Condensed Interim Financial Statements

For the Three Months Ended March 31, 2024 and 2023

(Expressed in Canadian Dollars) (Unaudited)

6. Mining Exploration and Evaluation Expenditures

The Company's properties are all located at the Athabasca Basin, Northern Saskatchewan. The Company currently maintains nine properties. The Company entered into joint venture agreements and operates one of these projects with Cameco Corporation and Orano Canada Inc. (formerly AREVA Resources Canada Inc.), one of these projects with Cameco Corporation, while the other seven projects remain 100% owned.

Mining exploration expenditures on the Company's properties during the three-month periods ended March 31, 2024 and 2023 are as follows:

		For the three-month period ended
				March 31,
		2024		2023
Red Willow Property	$	-	$	1,757,321
Hook Lake Property		316,640		345,795
Smart Lake Property		18,815		-
Turnor Lake Property		10,362		19,930
Henday Lake Property		-		2,258
Tabbernor Block		19,490		22,027
Russel South Property		112,136		-
Other Properties		-		5,228
	$	477,443	$	2,152,559

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