Centaurus Energy : - FS Sep 30 2021

CENTAURUS ENERGY INC.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(UNAUDITED)

NOTICE OF NO AUDITORS' REVIEW OF INTERIM FINANCIAL STATEMENTS

The accompanying unaudited interim condensed financial statements of Centaurus Energy 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 the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditors.

Condensed Interim Consolidated Statements of Financial Position (Unaudited)

			At	At
			September 30	December 31
USD 000s		Note	2021	2020
Assets
Current assets
Cash and cash equivalents			345	114
Trade and other receivables			23,266	2,959
Inventory			469	897
Other current assets			251	548
Total current assets			24,331	4,518
Property, plant and equipment	3	1,016	1,228
Exploration and evaluation assets	4	3,864	30,766
Other long-term assets	6	2,743	2,729
Total non-current assets			7,623	34,723
TOTAL ASSETS			31,954	39,241
Liabilities
Current liabilities
Current Loan		7	20,240	12,080
Short term debt	8	2,193	2,122
Derivative liability	8	5	5
Trade and other payables			35,850	21,579
Taxes payable			185	292
Short-term lease liability	9	8	8
Total current liabilities			58,517	36,086
Non-current Loan	7	-	14,488
Non-current decommissioning obligations			9,239	12,643
Other long-term liabilities	13	958	1,325
Total non-current liabilities			10,197	28,456
TOTAL LIABILITIES			68,714	64,542
Shareholders' Equity
Share capital		11	239,029	239,029
Contributed surplus			18,751	18,587
Accumulated other comprehensive loss			(26,941)	(26,941)
Deficit			(267,599)	(255,976)
Total equity			(36,760)	(25,301)
TOTAL LIABILITIES AND EQUITY			31,954	39,241

Commitments and Other Long-term Liabilities (note 15)

See the accompanying Notes to the Condensed Interim Consolidated Financial Statements.

Centaurus Energy Inc.

Condensed Interim Consolidated Financial Statements Q3 2021| 2

Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Unaudited)

			Three months ended	Nine months ended
			September 30	September 30
USD 000s, except per share amounts	Note	2021	2020	2021	2020
	Revenues
	Oil and natural gas revenues	15	5,425	6,895	14,869	20,950
	Royalties		(715)	(1,214)	(2,107)	(3,370)
	Other Income		-	29	(86)	88
			4,710	5,710	12,676	17,668
	Expenses
	Operating	16	2,555	3,994	7,624	14,511
	General and administrative	16	432	658	1,385	2,605
	Finance (income) expenses	17	(122)	687	(464)	2,150
	Share-based and long-term incentive
	compensation	19, 20	(79)	531	163	535
	Depletion and depreciation	3	118	3,248	1,420	10,778
	Depreciation of right-of-use assets	5	-	-	-	73
	Loss (Gain) on disposal of assets	3, 4, 12	-	378	242	868
	Fair value change on warrant liability		-	(3)	-	(14)
	Impairment	3	-	-	14,214	9,326
	Other gains and losses		(89)	(25)	(285)	(124)
			2,815	9,468	24,299	40,708
	Gain (Loss) before income taxes		1,895	(3,758)	(11,623)	(23,040)
	Income tax recovery (expense)
	Current		-	-	-	-
	Deferred		-	-	-	-
			-	-	-	-
	Gain (Loss)		1,895	(3,758)	(11,623)	(23,040)
	Comprehensive Gain (Loss)		1,895	(3,758)	(11,623)	(23,040)
	Net Gain (Loss) per share
	Basic and diluted - continuing	13	0.00	(0.01)	(0.02)	(0.04)
	Basic and diluted - total	13	0.00	(0.01)	(0.02)	(0.04)

See the accompanying Notes to the Condensed Interim Consolidated Financial Statements.

Centaurus Energy Inc.

Condensed Interim Consolidated Financial Statements Q3 2021| 3

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Unaudited)

					Equity
					Component o	f	Accumulated
			Share		Convertible		Other
			Capital	Contributed	Debentures		Comprehensive				Total
	USD 000s	(note 11)	Surplus	(note 8)		Loss		Deficit		Equity
	Balance at December 31, 2020	239,029	18,587	-		(26,941)		(255,976)		(25,301)
	Net Loss	-	-	-		-		(11,623)		(11,623)
	Share-based compensation (note11)	-	164	-		-		-		164
	Balance at September 30, 2021	239,029	18,751	-		(26,941)		(267,599)		(36,760)
	Balance at December 31, 2019
	239,029	18,097	-		(26,941)		(217,956)		12,229
	Net Loss	-	-	-		-		(23,040)		(23,040)
	Share-based compensation (note 11)	-	543	-		-		-		543
	Convertible debentures maturity	-	-	-		-		-		-
	Balance at September 30, 2020	239,029	18,640	-		(26,941)		(240,996)		(10,268)

See the accompanying Notes to the Condensed Interim Consolidated Financial Statements.

Centaurus Energy Inc.

Condensed Interim Consolidated Financial Statements Q3 2021| 4

Condensed Interim Consolidated Statements of Cash Flows (Unaudited)

			Three months
			ended		Nine months ended
			September 30	September 30
	USD 000s	Note	2021		2020	2021	2020
	Cash provided by (used in):
	Operating
	Net Gain (Loss)		1,895		(3,758)	(11,623)	(23,040)
	Items not affecting cash:
	Depletion and depreciation	3	118		3,248	1,420	10,778
	Depreciation of right-of-use assets	5	-		-	-	73
	Impairment	3	-		-	14,214	9,326
	Accretion		33		39	103	149
	Fair value change on convertible deventures		-		(3)	-	(14)
	held
	Loss (Gain) on disposal of assets	3, 12	-		378	242	868
	Share-based and long-term incentive
	compensation	18, 19	(79)		531	163	535
	Lease commitment liability		(86)		-	(281)
	Deferred income tax expense (recovery)		-		-	-	-
	Unrealized (gain) loss on foreign exchange	17	(673)		(68)	(2,013)	(111)
	Non-cash increase of contingent liability		3		7	8	15
	Change in non-cash working capital	13	(1,054)		(449)	(1,658)	685
	Cash flow from (used in) operating activities		157		(75)	575	(736)
	Investing
	Property, plant and equipment additions	3	(39)		37	(122)	37
	Evaluation and exploration assets additions	4	-		-	-	(7)
	Change in non-cash working capital	13	-		191	-	382
	Net cash from (used in) investing activities		(39)		228	(122)	412
	Financing
	Loan term debt proceeds	8	-		-	66	-
	Convertible debentures repayment	8	-		-	-	-
	Lease payment	9	-		(10)	-	(72)
	Change in non-cash working capital		-		-	-	-
	Net cash used in financing activities		-		(10)	66	(72)
	Change in cash and cash equivalents		50		143	231	(396)
	Cash and cash equivalents, beginning of period		296		60	114	599
	Cash and cash equivalents, end of period		345		203	345	203

1. Non-cashadditions related to CASE $4,950 YTD (note 3).
2. Non-cashloan received from PAE, net of repayments $13,514 YTD (note 7)

See the accompanying Notes to the Condensed Interim Consolidated Financial Statements.

Centaurus Energy Inc.

Condensed Interim Consolidated Financial Statements Q3 2021| 5