Chakana Copper : November 30, 2021 Q2 Financial Statements

CHAKANA COPPER CORP.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2021

(UNAUDITED - EXPRESSED IN CANADIAN DOLLARS)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM

FINANCIAL STATEMENTS

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

The accompanying unaudited condensed interim consolidated financial statements of Chakana Copper Corp. (the "Corporation") have been prepared by and are the responsibility of the Corporation's management. The unaudited condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards and reflect management's best estimates and judgment based on information currently available.

The Corporation's independent auditor has not performed a review of these condensed interim consolidated financial statements.

January 27, 2022

CHAKANA COPPER CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS AT NOVEMBER 30, 2021 (UNAUDITED) AND MAY 31, 2021

(Expressed in Canadian Dollars)

				November 30,		May 31,
				2021		2021
				(Unaudited)		(Audited)
	ASSETS
	Current Assets
	Cash and cash equivalents	$	3,338,226	$	8,675,790
	Prepaids and other current assets			177,347		228,979
				3,515,573		8,904,769
	Non-current Assets
	Exploration and evaluation assets (Note 4)			3,154,489		2,790,840
	Property and equipment (Note 5)			626,452		937,745
	Value-added tax receivable			784,518		558,316
	Total Assets	$	8,081,032	$	13,191,670
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Current Liabilities
	Accounts payable and accrued liabilities (Note 12)	$	605,293	$	1,246,461
	Current portion of lease obligation (Note 6)			44,536		42,337
				649,829		1,288,798
	Non-current Liabilities
	Lease obligation (Note 6)			174,800		194,432
	Total Liabilities			824,629		1,483,230
	Shareholders' Equity
	Common shares (Note 7)			37,482,558		37,482,558
	Stock option reserve (Note 7)			2,740,951		2,518,080
	Accumulated other comprehensive income			616,096		303,035
	Deficit			(33,583,202)		(28,595,233)
	Total Shareholders' Equity			7,256,403		11,708,440
	Total Liabilities and Shareholders' Equity	$	8,081,032	$	13,191,670
	Contingency (Note 13)
	Approved on behalf of the Board of Directors
	/s/ Tom Wharton		/s/ Darren Devine
	Tom Wharton, Director		Darren Devine, Director

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

CHAKANA COPPER CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2021 AND NOVEMBER 30, 2020

(Unaudited - Expressed in Canadian Dollars)

		Three Months		Three Months		Six Months		Six Months
		Ended		Ended		Ended		Ended
		November 30,		November 30,		November 30,		November 30,
		2021		2020		2021		2020
OPERATING EXPENSES
Consulting fees (Note 12)	$	59,067	$	47,527	$	125,420	$	114,783
Depreciation (Note 5)		29,517		24,330		63,609		49,521
Exploration and evaluation
expenditures (Note 8)		1,255,496		1,421,820		3,614,679		1,857,478
General and administrative		99,190		97,759		187,159		170,048
Investor relations		98,378		105,119		148,804		183,603
Legal and professional fees		60,838		61,034		86,839		100,128
Salaries and wages		65,900		68,673		134,175		151,710
Stock-based compensation
(Note 7)		203,391		202,883		505,047		809,975
Travel and meals		17,462		-		17,461		1,649
Operating Expenses		(1,889,239)		(2,029,145)		(4,883,193)		(3,438,895)
Other
Foreign exchange income (loss)		25,339		84		23,541		(17,020)
Recovery of valued-added tax
previously written off		-		-		-		128,607
Write-off leasehold
improvements		-		-		(410,493)		-
Interest income		-		28,096		-		50,973
		25,339		28,180		(386,952)		162,560
Net Loss		(1,863,900)		(2,000,965)		(5,270,145)		(3,276,335)
Other Comprehensive Income
(Loss)
Foreign currency translation		260,003		(46,931)		313,061		(283,974)
Comprehensive Loss	$	(1,603,897)	$	(2,047,896)	$	(4,957,084)	$	(3,560,309)
Basic and diluted loss per share	$	(0.01)	$	(0.02)	$	(0.04)	$	(0.04)
Weighted average number of
common shares outstanding
(basic and diluted)		111,410,762		93,326,477		111,410,762		93,263,508

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

CHAKANA COPPER CORP.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED NOVEMBER 30, 2021 AND NOVEMBER 30, 2020 (Unaudited - Expressed in Canadian Dollars)

		Six Months		Six Months
		Ended		Ended
		November 30,		November 30,
		2021		2020
Cash Flows used in Operating Activities
Net loss	$	(5,270,145)	$	(3,276,335)
Adjustments to reconcile net loss to cash used in operating activities
Depreciation		63,609		49,521
Stock-based compensation		505,047		809,975
Unrealized foreign exchange		271,292		57,515
Prepaids and other current assets		51,632		(107,436)
Value-added tax receivable		(226,202)		238,270
Accounts payable and accrued liabilities		(641,170)		266,384
Write-off of leasehold improvements		410,493		-
		(4,835,444)		(1,962,106)
Cash Flows used in Investing Activities
Leasehold improvements and purchase of equipment		(167,583)		(25,293)
Acquisition of exploration and evaluation assets		(367,003)		(223,450)
		(534,586)		(248,743)
Cash Flows provided by (used in) Financing Activities
Repayment of lease obligation		(21,195)		-
Exercise of options		-		30,000
		(21,195)		30,000
Changes in cash during the period		(5,391,225)		(2,180,849)
Foreign exchange on cash		53,661		(25,499)
Cash and cash equivalents - beginning of the period		8,675,790		6,680,370
Cash and cash equivalents - end of the period	$	3,338,226	$	4,474,022
Cash and cash equivalents consists of
Cash	$	3,338,226	$	474,022
Demand deposit - guaranteed investment certificates		-		4,000,000
	$	3,338,226	$	4,474,022

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