Colibri Resource : Earnings Document

COLIBRI RESOURCE CORPORATION

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE QUARTERS ENDED MARCH 31, 2024 AND 2023

(Expressed in Canadian Dollars)

COLIBRI RESOURCE CORPORATION

(An Exploration Stage Company)

Condensed Consolidated Interim Financial Statements

March 31, 2024 and 2023

(Unaudited - Prepared by Management)

NOTICE OF NO AUDITOR REVIEW OF 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 condensed consolidated interim financial statements they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

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

The Company's independent auditors have not performed a review of these condensed consolidated interim financial statements in accordance with the standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity's auditors.

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COLIBRI RESOURCE CORPORATION

Condensed Consolidated Interim Statements of Comprehensive (Loss) Income

(Expressed in Canadian Dollars - Unaudited)

	For the three		For the three
	months ended		months ended
	March 31,		March 31,
	2024	2023
	$		$
ADMINISTRATION AND GENERAL	50,853	18,805
Accounting and audit fees
Advertising and promotion	11,866	10,634
Amortization and depreciation	29,916	28,583
Consulting fees (Note 12)	18,000	30,000
Exploration and evaluation expense	16,802	-
Foreign exchange loss (gain)	21,074	(723)
Interest and accretion expense (Note 10 & 11)	119,858	72,064
Legal	3,905	1,773
Management fees (Note 12)	36,000	24,000
Office and miscellaneous	17,779	49,301
Repairs and maintenance	8,277	-
Share-based compensation	86,863	-
Telephone	1,815	1,791
Transfer agent and filing fees	7,552	7,406
Travel and related costs	6,779	12,118
Wages and benefits	40,017	39,894
Other income (loss)	(477,356)	(295,646)
6,697	3,717
Expenses recovered
Fair value adjustments on investments (Note 6)	(10,500)	85,800
Realized gain on sale of investments (Note 6)	-	29,798
	(3,803)	119,315
NET LOSS FOR THE PERIODS	(481,159)	(176,331)
COMPREHENSIVE INCOME	252,439
Cumulative translation adjustment	361,038
COMPREHENSIVE (LOSS) INCOME FOR THE PERIODS	(228,720)	184,707
Net loss share - basic and diluted	(0.00)	(0.00)
Weighted average number of shares	97,132,875
outstanding - basic and diluted	96,726,625

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

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COLIBRI RESOURCE CORPORATION

Condensed Consolidated Interim Statements of Financial Position

(Expressed in Canadian Dollars - Unaudited)

	As at		As at
	March 31,		December 31,
	2024	2023
ASSETS	$		$
Current
Cash (Note 3)	26,064	378,799
Receivables (Note 4)	48,753	44,433
Investment (Note 6)	291,625	302,125
Prepaid expenses (Note 5)	217,645	212,915
Non-current	584,087		938,272
Capital assets (Note 7)	538,229	538,383
Right-of-use asset (Note 8)	112,314	117,777
Exploration and evaluation assets (Note 9)	5,296,100	4,907,420
Total Assets	6,530,730		6,501,852
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities	360,230	288,320
Accounts payable to related parties (Note 12)	86,448	75,183
Loans payable (Note 11)	474,250	462,910
Current portion of lease liability (Note 8)	21,476	21,597
Non-current	942,404		848,010
Convertible debenture (Note 10)	1,334,668	1,252,254
Financial derivative liability (Note 10)	176,909	176,909
Lease Liability (Note 8)	98,480	104,553
Total liabilities	2,552,461		2,381,726
Shareholders' Equity
Share capital (Note 13)	17,580,204	17,580,204
Warrants (Note 13)	62,316	62,316
Contributed surplus (Note 13)	1,377,306	1,290,443
Accumulated other comprehensive income (Note 17)	1,061,300	808,861
Accumulated deficit	(16,102,857)	(15,621,698)
Total shareholders' equity	3,978,269		4,120,126
Total liabilities and shareholders' equity	6,530,730		6,501,852

Nature of operations and going concern (Note 1)

Subsequent events (Note 18)

APPROVED BY THE BOARD OF DIRECTORS

Original signed by William MacDonald, Director

Original signed by Ronald Goguen, Director

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

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COLIBRI RESOURCE CORPORATION

Condensed Consolidated Interim Statements of Change in Shareholders' Equity

For the Three Month Periods Ended March 31, 2024 and 2023

(Expressed in Canadian Dollars - Unaudited)

				Equity	Accumulated
				component of	other
				convertible	comprehensive	Contributed	Accumulated
		Share capital	Warrants	debenture	income	surplus	deficit	Total equity
	Number of shares	$	$	$	$	$	$	$
Balance December 31, 2022	96,726,625	17,561,923	-	292,753	246,729	603,360	(14,836,949)	3,867,816
Net loss for the period	-	-	-	-	-	-	(176,331)	(176,331)
Other comprehensive income	-	-	-	-	361,038	-	-	361,038
Balance March 31, 2023	96,726,625	17,561,923	-	292,753	607,767	603,360	(15,013,280)	4,052,523
Net loss for the period	-	-	-	-	-	-	(608,418)	(608,418)
Value of warrants issued under private
placement (Note 10 & 13)	-	-	62,316	-	-	-	-	62,316
Common shares issued on conversion of
convertible debentures (note 13 )	406,250	18,281	-	-	-	13,032	-	31,313
Equity component of extinguished loan
(Note 10)	-	-	-	(292,753)	-	292,753	-	-
Equity portion of below market related
party loan (Note 10)	-	-	-	-	-	381,298		381,298
Other comprehensive income	-	-	-	-	201,094	-	-	201,094
Balance December 31, 2023	97,132,875	17,580,204	62,316	-	808,861	1,290,443	(15,621,698)	4,120,126
Net loss for the period	-	-	-	-	-		(481,159)	(481,159)
Share based compensation	-	-	-	-	-	86,863		86,863
Other comprehensive income	-	-	-	-	252,439	-	-	252,439
Balance March 31, 2024	97,132,875	17,580,204	62,316	-	1,061,300	1,377,306	(16,102,857)	3,978,269

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

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COLIBRI RESOURCE CORPORATION

Condensed Consolidated Interim Statements of Cash Flows

(Expressed in Canadian Dollars - Unaudited)

	For the three		For the three
	months ended		months ended
	March 31,		March 31,
	2024	2023
	$		$
CASH FLOW USED IN OPERATING ACTIVITIES
Net loss for the periods	(481,159)	(176,331)
Items not involving cash:	29,916	28,583
Amortization
Share-based compensation	86,863	-
Fair value adjustments on investments (Note 6)	10,500	(85,800)
Realized gain on sale of investment (Note 6)	-	(29,798)
Interest and accretion	89,024	58,539
Unrealized foreign exchange loss	27,051	-
Changes in non-cash working capital	(4,320)	53,583
(Increase) decrease in receivables
Increase in prepaid expenses	(4,730)	(13,649)
Increase in trade payables and accrued liabilities	71,910	3,010
Net cash flow used in operating activities	(174,945)		(161,863)
CASH FLOW (USED IN) PROVIDED BY INVESTING
ACTIVITIES	(168,468)	(253,263)
Acquisition of exploration and evaluation assets (Note 9)
Acquisition of capital assets (Note 7)	-	(17,628)
Proceeds from sale of investments (Note 6)	-	400,898
Net cash flow (used in) provided by investment activities	(168,468)		130,007
CASH FLOW (USED IN) PROVIDED BY FINANCING ACTIVITIES	-	100,000
Proceeds from loan payable (Note 11)
Repayment of related party payables (Note 12)	11,265	(28,884)
Repayment of lease obligations (Note 8)	(6,872)	(9,142)
Interest paid on debentures	(22,321)	-
Net cash flow (used in) provided by financing activities	(17,928)		61,974
Effect of change in foreign exchange rates	8,606	17,424
(DECREASE) INCREASE IN CASH	(352,735)	47,542
Cash, beginning of periods	378,799	84,095
Cash, end of periods	26,064		131,637

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

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COLIBRI RESOURCE CORPORATION

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For The Quarters Ended March 31, 2024 and, 2023

(Unaudited - Prepared by Management)

(Expressed in Canadian Dollars)

1. NATURE OF OPERATIONS AND GOING CONCERN

Colibri Resource Corporation ("the Company") was incorporated on February 20, 2004 in the Province of British Columbia. The Company's registered office and principal place of business is 105 Englehart St., Suite 700, Dieppe, NB, Canada.

The Company is pursuing opportunities in the exploration of mineral and natural resource properties in Mexico and is considered to be in the exploration stage.

The Company is in the process of acquiring and exploring its mineral properties and has not yet determined whether the properties contain ore reserves that are economically recoverable. The recoverability of the amounts shown for mineral properties and related deferred exploration costs are dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development of those reserves and upon future profitable production or proceeds from the disposition of the properties.

These condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and liabilities in the normal course of business. The following material uncertainties cast significant doubt on the validity of this assumption. During the quarter ended March 31, 2024, the Company had a net loss of $481,159 (2023 - $176,331) and as at March 31, 2024, the Company has a working capital deficiency of $358,317 (December 2023 - working capital $90,262), a cumulative deficit of $16,102,857 (December 2023 - $15,621,698), no source of operating cash flow, and no assurances that sufficient funding will be available to conduct further exploration and development of its resource property projects. The Company has raised funds from a private placement of convertible debentures during the year ended December 31, 2023 (note 10).

The only source of future funds presently available to the Company is through the issuance of share capital, or by the sale of an interest in any of its properties in whole or in part. The ability of the Company to arrange such financing or sale of an interest in the future will depend in part upon the prevailing market conditions as well as the business performance of the Company. There can be no assurance that the Company will be successful in its efforts to arrange additional financing, if needed, on terms satisfactory to the Company. If additional financing is raised through the issuance of shares, control of the Company may change and shareholders may suffer dilution. These material uncertainties may cast significant doubt about the Company's ability to continue as a going concern. Although these condensed consolidated interim financial statements do not include any adjustments that may result from the inability to secure future financing, such a situation would have a material adverse effect on the Company's business, results of operations, and financial condition.

The amounts shown as exploration and evaluation assets represent acquisition costs net of recoveries to date, less amounts written off, and do not necessarily represent present or future values. Recoverability of the amounts shown for mineral property interests is dependent upon the discovery of economically recoverable mineral reserves, securing and maintaining title and beneficial interest in the properties, the ability of the Company to obtain financing necessary to complete the exploration and development of its mineral property interests, and on future profitable production or proceeds from the disposition of the mineral property interests.

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COLIBRI RESOURCE CORPORATION

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For The Quarters Ended March 31, 2024 and, 2023

(Unaudited - Prepared by Management)

(Expressed in Canadian Dollars)

2. BASIS OF PRESENTATION

1. Statement of Compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") applicable to the preparation of interim financial statements, including IAS 31, Interim Financial Reporting.

These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2023, which have been prepared in accordance with IFRS as issued by the IASB. The Company uses the same accounting policies and methods of computation as in the annual consolidated financial statements for the year ended December 31, 2023.

The Board of Directors approved these condensed consolidated interim financial statements for issue on May 28, 2024.

(b) Basis of Measurement

These condensed consolidated interim financial statements have been prepared on an accrual basis and are based on historical costs, with the exception of certain financial instruments classified as available-for-sale which are measured at fair value as described in Note 3. The condensed consolidated interim financial statements are presented in Canadian dollars unless otherwise stated.

(c) Subsidiaries and Principles of Consolidation

These condensed consolidated interim financial statements include the accounts of Colibri Resource Corporation and its wholly owned subsidiaries 7985240 Canada Ltd. (formerly Canadian Gold Resources Ltd.), Great Panther Coboro Holdings Ltd., Minera Bestep S.A. de C.V. (Minera Bestep), Yaque Minerales S.A. de C.V. (Yaque), and Coboro Minerales S.A. de C.V. (Coboro). Minera Bestep, Yaque and Coboro are incorporated in Mexico for the purposes of developing mineral properties. All intercompany transactions and balances have been eliminated upon consolidation. All amounts are reported and measured in Canadian dollars.

Control exists where the parent entity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Subsidiaries are included in the condensed consolidated interim financial report from the date control commences to the date control ceases.

(d) Significant Accounting Judgments and Estimates

The preparation of these condensed consolidated 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 consolidated interim financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the condensed consolidated interim 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 may affect both the period of revision and future periods. Significant assumptions about the future and other sources of estimation uncertainty that management has made at the consolidated statement of financial position date,

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COLIBRI RESOURCE CORPORATION

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For The Quarters Ended March 31, 2024 and, 2023

(Unaudited - Prepared by Management)

(Expressed in Canadian Dollars)

2. BASIS OF PRESENTATION (Continued)

(d) Significant Accounting Judgments and Estimates (Continued)

that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:

• The assumption of going concern basis of accounting;
• The carrying value and recoverable amount of exploration and evaluation assets (note 9);
• The inputs used in valuation for share-based compensation expense in the consolidated statements of operations and comprehensive loss (note 13(d));
• The inputs used in the valuation of the convertible debentures, the conversion feature and the attached warrants (notes 10 & 13(c));
• The valuation of shares issued in non-cash transactions (note 3);
• The valuation allowance applied against deferred income tax assets;
• The determination of functional currency (note 3); and
• The determination that the foreign exchange differences on loans to the Mexican subsidiaries are recorded to other comprehensive income because the loans are part of the net investment in a foreign operation and repayment is not expected in the foreseeable future (note 3).

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Cash

For purposes of reporting cash flows, the Company considers cash and cash equivalents to include amounts held in banks and cashable highly liquid investments with limited interest and credit risk. The remaining maturities at point of purchase are at three months or less, with no penalties on early retirement.

(b) Exploration and evaluation assets

Exploration and evaluation assets are recorded at cost less accumulated impairment losses, if any. All direct costs related to the acquisition, exploration and evaluation of mineral properties are capitalized until the technical feasibility and commercial viability of the asset is established, at which time the capitalized costs are reclassified to mineral properties under development. Technical feasibility and commercial viability is defined as (1) the determination of mineral reserves and (2) a decision to proceed with development has been recommended by management and approved by the Company's board of directors. To the extent that the expenditures are made to establish mineral reserves within the rights to explore, the Company will consider those costs as capital in nature. The depreciation of a capital asset in connection with exploring or evaluating a property of this nature will be included in the cost of the exploration and evaluation asset.

Management reviews the facts and circumstances to determine whether there is an indication that the carrying amount of the exploration and evaluation assets exceeds their carrying value on a regular basis. Indication includes but is not limited to, the expiration of the right to explore, substantive expenditure in the specific area is neither budgeted nor planned and if the entity has decided to discontinue exploration activity in the specific area. If the facts and circumstances suggest the carrying value exceeds the recovery value, the Company will write down the carrying value of the property.

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COLIBRI RESOURCE CORPORATION

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For The Quarters Ended March 31, 2024 and, 2023

(Unaudited - Prepared by Management)

(Expressed in Canadian Dollars)

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(c) Capital assets

Capital assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. The cost of capital assets consists of the purchase price and any costs directly attributable to bringing the assets to the location and condition necessary for its intended use.

Capital assets are depreciated on a straight-line basis over their useful lives at the following rates:

Building - 20 years

Drilling equipment - 10 years

Transportation equipment - 4 years

Computer equipment - 3 years

Furniture and fixtures - 3 years

(d) Impairment of long-lived assets

At the end of each reporting period, the Company's assets are reviewed to determine whether there is any indication that those assets may be impaired. If such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm's length transaction between knowledgeable and willing parties. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized in the profit or loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but to an amount that does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash- generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

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