Azucar Minerals : 2022 Q2 Financial Statements

Condensed Consolidated Interim Financial Statements of

Azucar Minerals Ltd.

For the three and six months ended June 30, 2022 (Unaudited)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

The accompanying unaudited condensed consolidated interim financial statements of Azucar Minerals Ltd. ("the Company") for the three and six months ended June 30, 2022 have been prepared by the management of the Company and approved by the Company's Audit Committee and the Company's Board of Directors.

Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the consolidated interim financial statements, they must be accompanied by a notice indicating that an auditor has not reviewed the financial statements.

The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by CPA Canada for a review of the condensed consolidated interim financial statements by an entity's auditor.

Azucar Minerals Ltd.

Condensed consolidated interim statements of financial position (Unaudited - Expressed in Canadian dollars)

	June 30,	December 31,
	2022	2021
	$	$
ASSETS
Current assets
Cash and cash equivalents (Note 10)	1,531,949	2,116,521
Accounts receivable and prepaid expenses (Note 4)	22,274	60,085
	1,554,223	2,176,606
Non-current assets
Property and equipment (Note 5)	124,172	133,117
Exploration and evaluation assets (Note 6)	22,777,066	22,351,457
	22,901,238	22,484,574
TOTAL ASSETS	24,455,461	24,661,180
LIABILITIES
Current liabilities
Trade and other payables (Note 8(b))	118,014	145,974
Total liabilities	118,014	145,974
EQUITY
Share capital (Note 7)	24,043,321	24,043,321
Reserves (Note 7)	3,689,087	3,631,587
Deficit	(3,394,961)	(3,159,702)
Total equity	24,337,447	24,515,206
TOTAL EQUITY AND LIABILITIES	24,455,461	24,661,180

These condensed consolidated interim financial statements are authorized for issue by the Board of Directors on August 12, 2022.

They are signed on the Company's behalf by:

/s/Duane Poliquin	/s/Fuad Sillem
Director	Director

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

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Azucar Minerals Ltd.

Condensed consolidated interim statements of loss and comprehensive loss

(Unaudited - Expressed in Canadian dollars)

	Three months ended June 30,	Six months ended June 30,
	2022	2021	2022	2021
			$	$
Expenses
Administrative services fee (Note 8(a)(b))	37,705	117,075	74,483	280,598
Depreciation (Note 5)	4,473	5,425	8,945	10,850
Office	17,906	11,884	29,190	20,929
Professional fees	40,418	43,294	49,463	81,631
Transfer agent and filing fees	8,993	15,188	25,587	29,257
Travel and promotion	-	13,205	-	24,022
Share-based payments (Note 7(b))	25,500	219,860	57,500	219,860
	134,995	425,931	245,168	667,147
Other income (loss)
Interest income	1,928	2,504	2,741	5,544
Foreign exchange gain (loss)	8,738	(4)	7,168	5,966
	10,666	2,500	9,909	11,510
Loss and comprehensive loss for the period	(124,329)	(423,431)	(235,259)	(655,637)
Basic and diluted net loss per share (Note 9)	(0.00)	(0.01)	(0.00)	(0.01)

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

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Azucar Mineral Ltd.

Condensed consolidated interim statements of cash flows

(Unaudited - Expressed in Canadian dollars)

	Three months ended June 30,	Six months ended June 30,
	2022	2021	2022	2021
	$	$	$	$
Operating activities
Loss for the period	(124,329)	(423,431)	(235,259)	(655,637)
Items not affecting cash
Depreciation	4,473	5,425	8,945	10,850
Share-based payments	25,500	219,860	57,500	219,860
Changes in non-cash working capital components
Accounts receivable and prepaid expenses	33,963	66,978	37,811	62,419
Trade and other payables	(20,427)	(2,491)	(27,412)	(34,721)
Net cash used in operating activities	(80,820)	(133,659)	(158,415)	(397,229)
Investing activities
Exploration and evaluation assets - costs	(252,268)	(838,412)	(426,157)	(1,258,016)
Net cash used in investing activities	(252,268)	(838,412)	(426,157)	(1,258,016)
Financing activities
Net cash from financing activities	-	-	-	-
Change in cash and cash equivalents	(333,088)	(972,071)	(584,572)	(1,655,245)
Cash and cash equivalents, beginning of period	1,865,037	3,741,765	2,116,521	4,424,939
Cash and cash equivalents, end of period	1,531,949	2,769,694	1,531,949	2,769,694
Supplemental cash flow information (Note 10)

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

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