Benz Mining : Annual Financial Statements and MD&A for FYE 30 April 2022

For personal use only

Financial Statements

April 30, 2022

(Expressed in Canadian dollars)

LANCASTER & DAVID

CHARTERED PROFESSIONAL ACCOUNTANTS

For personal use only

INDEPENDENT AUDITORS' REPORT

To the shareholders of Benz Mining Corp.:

Opinion

We have audited the financial statements of Benz Mining Corp. [the "Company"], which comprise the statements of financial position as at April 30, 2022 and 2021, and the statements of operations and comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the Company as at April 30, 2022 and 2021, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards ["IFRSs"].

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 in the financial statements, which indicates that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other Information

Management is responsible for the other information. The other information comprises the Management's Discussion and Analysis, which we obtained prior to the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audits of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and

2 | P a g e

For personal use only

are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditor's report is Michael J. David.

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, BC

July 28, 2022

Address: Suite 510, 701 West Georgia Street, PO Box 10133, Vancouver, BC, Canada, V7Y 1C6

Telephone: [phone]

Facsimile: 604.717.5560

Email: [e-mail]

3 | P a g e

Benz Mining Corp.

Statements of Operations and Comprehensive Loss

For personal use only

			Year ended April 30,
	Note		2022		2021
Operating Costs
Exploration and evaluation costs	5	$	19,034,483	$	7,573,430
Listing and filing fees			141,752	$	250,969
Management and consulting fees	6		768,646	$	801,516
Office and miscellaneous			130,348	$	47,542
Bad or doubtful debt expense	4		116,184	$	-
Professional fees			118,786	$	67,726
Share-based payments	8		4,994	$	2,158,003
Shareholder information			112,578	$	26,896
Loss from operations			(20,427,771)		(10,926,082)
Other income (expense)
Foreign exchange			(46,453)	$	(25,349)
Interest Income			23,833	$	22,840
Settlement of flow-through share premium liability	7		7,813,644	$	1,469,472
Net loss and comprehensive loss		$	(12,636,747)	$	(9,459,119)
Loss per share - basic and diluted		$	(0.12)	$	(0.11)
Weighted average number of shares outstanding -
basic and diluted			106,130,750		84,413,756

See accompanying notes to the financial statements

4 | P a g e

For personal use only

Benz Mining Corp.

Statements of Financial Position

	Note		April 30, 2022		April 30, 2021
ASSETS
Current Assets
Cash and cash equivalents		$	2,782,026	$	13,144,767
Sales taxes recoverable			1,225,057	$	376,697
Other receivables			168,885	$	-
Prepaid expenses and deposits			56,000	$	22,757
Total current assets			4,231,968		13,544,221
Exploration and evaluation assets	5		1,826,667	$	1,555,903
Total assets		$	6,058,635	$	15,100,124
LIABILITIES
Current Liabilities
Trade and other payables		$	2,544,545	$	1,168,547
Flow-through share premium liability	7		-	$	3,359,099
Total current liabilities			2,544,545		4,527,646
EQUITY
Common shares	8	$	23,648,836	$	18,285,495
Equity reserves	8		8,863,788	$	8,648,770
Deficit			(28,998,534)		(16,361,787)
Total equity			3,514,090		10,572,478
		$	6,058,635	$	15,100,124

Nature of Operations (Note 1)

Subsequent Events (Note 12)

These financial statements are authorized for issue by the Board of Directors on July 28, 2022

Approved by the Board of Directors:

(Signed) Evan Cranston		(Signed) Mathew O'Hara
Evan Cranston, Chairman of the Board		Mathew O'Hara, Director

See accompanying notes to the financial statement

5 | P a g e