High Tide Resources : June 30, 2023 Financial Statements

Consolidated Financial Statements

For the years ended June 30, 2023 and 2022

(Expressed in Canadian Dollars)

Independent Auditor's Report

To the Shareholders of High Tide Resources Corp.

Opinion

We have audited the consolidated financial statements of High Tide Resources Corp. and its subsidiary (the "Company"), which comprise the consolidated statements of financial position as at June 30, 2023 and 2022, and the consolidated statements of operations and comprehensive loss, consolidated statements of changes in shareholders' equity and consolidated statements of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at June 30, 2023 and 2022,and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards ("IFRS").

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 consolidated 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 consolidated financial statements in Canada. 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 consolidated financial statements, which indicates that the Company incurred a net loss during the year ended June 30, 2023 and, as of that date, the Company had an accumulated deficit and limited working capital. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that material uncertainties exist that cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Except for the matter described in the Material uncertainty related to going concern section, we have determined that there were no additional key audit matters to communicate in our report.

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Other information

Management is responsible for the other information. The other information comprises Management's Discussion and Analysis.

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

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

We obtained Management's Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, 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 consolidated financial statements

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

In preparing the consolidated 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 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 the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures

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responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risks 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 consolidated 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 consolidated financial statements, including the disclosures, and whether the consolidated 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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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The engagement partner of the audit resulting in this independent auditor's report is Jessica Glendinning.

McGovern Hurley LLP

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Ontario

October 24, 2023

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TABLE OF CONTENTS

	Page
Consolidated Statements of Financial Position	1
Consolidated Statements of Operations and Comprehensive Loss	2
Consolidated Statements of Change in Shareholders' Equity	3
Consolidated Statements of Cash Flows	4
Notes to the Consolidated Financial Statements	5 - 27

HIGH TIDE RESOURCES CORP.

Consolidated Statements of Financial Position

As at June 30, 2023 and 2022

(Expressed in Canadian Dollars)

	2023	2022
	$	$
Assets
Current
Cash and cash equivalents	69,255	1,176,596
Amounts receivable and prepaids	384,775	508,307
Total assets	454,030	1,684,903
Liabilities
Current
Trade payables and accrued liabilities (Note 8)	365,779	968,290
Due to related company (Note 8)	36,882	91,486
Total liabilities	402,661	1,059,776
Shareholders' Equity
Share capital (Note 5(b))	7,724,248	7,070,932
Warrants (Note 6)	496,600	312,547
Contributed surplus (Note 5(c))	253,558	66,448
Deficit	(8,423,037)	(6,824,800)
Total equity	51,369	625,127
Total liabilities and shareholders' equity	454,030	1,684,903

DESCRIPTION OF BUSINESS AND GOING CONCERN (Note 1)

COMMITMENTS AND CONTINGENCIES (Note 10 and 12)

APPROVED BY THE BOARD OF DIRECTORS

Original signed by Stephen Altmann, Director

Original signed by Steve Roebuck, Director

See accompanying notes to the consolidated financial statements

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HIGH TIDE RESOURCES CORP.

Consolidated Statements of Operations and Comprehensive Loss

For the years ended June 30, 2023 and 2022 (Expressed in Canadian Dollars)

	2023	2022
Operating Expenses
Exploration and evaluation expenditures (Note 10)	835,185	3,805,802
General and administrative (Note 9)	731,843	615,320
Share-based compensation	127,336	66,448
Net loss before other income	1,694,364	4,487,570
Other income
Flow-through premium reversal	(92,252)	-
Interest income	(3,875)	(9,535)
Total other income	(96,127)	(9,535)
Net loss and comprehensive loss for the year	1,598,237	4,478,035
Net loss per share - basic and diluted (Note 7)	0.02	0.08
Weighted average number of shares
outstanding - basic and diluted (Note 7)	73,479,599	57,975,776

See accompanying notes to the consolidated financial statements

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HIGH TIDE RESOURCES CORP.

Consolidated Statements of Change in Shareholders' Equity

For the years ended June 30, 2023 and 2022

				Contributed
	Number of shares	Share capital	Warrants	surplus	Deficit	Total Equity
		$	$	$	$	$
Balance - June 30, 2021	46,715,341	4,570,321	59,774	-	(2,346,765)	2,283,330
Net loss and comprehensive loss for the year	-	-	-	-	(4,478,035)	(4,478,035)
Share-based compensation	-	-	-	66,448	-	66,448
Shares issued for property acquisition (Note 5(b) and 10)	14,077,507	1,669,801	-	-	-	1,669,801
Units issued in exchange for subscription receipts (Note 5(b))	7,332,060	1,099,809	-	-	-	1,099,809
Value of warrants issued in exchange for subscription receipts	-	(242,635)	242,635	-	-	-
Unit issuance costs	-	(16,226)	-	-	-	(16,226)
Value of broker warrants issued in subscription receipt financing	-	(10,138)	10,138	-	-	-
Balance - June 30, 2022	68,124,908	7,070,932	312,547	66,448	(6,824,800)	625,127
Units issued in private placements	8,881,282	980,380	-	-	-	980,380
Value of warrants issued under private placement	-	(274,034)	274,034	-	-	-
Unit issuance costs	-	(30,123)	(19,112)	-	-	(49,235)
Flow-through unit premium	-	(62,181)	(30,071)	-	-	(92,252)
Value of broker warrants issued in private placement	-	(18,976)	18,976	-	-	-
Share-based compensation	-	-	-	127,336	-	127,336
Warrants expired	-	-	(59,774)	59,774	-	-
Shares issued for property acquisition - Clearcut Lithium (Note 5(b) and 10)	250,000	31,250	-	-	-	31,250
Shares issued for property acquisition - Big Bang (Note 5(b) and 10)	225,000	27,000	-	-	-	27,000
Balance - June 30, 2023	77,481,190	7,724,248	496,600	253,558	(8,423,037)	51,369

See accompanying notes to the consolidated financial statements

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HIGH TIDE RESOURCES CORP.

Consolidated Statements of Cash Flows

For the years ended June 30, 2023 and 2022 (Expressed in Canadian Dollars)

	2023	2022
	$	$
Operating activities	(1,598,237)	(4,478,035)
Net loss for the year
Items not involving cash:	(92,252)	-
Flow-through premium reversal
Shares issued for property acquisition - Clearcut Lithium (Note 5(b))	31,250	-
Shares issued for property acquisition - Big Bang (Note 5(b))	27,000	-
Shares issued for property acquisition - Labrador West (Note 5(b))	-	1,611,301
Shares issued for property acquisition - Lac Pegma (Note 5(b))	-	58,500
Share-based compensation	127,336	66,448
	(1,504,903)	(2,741,786)
Changes in non-cash working capital
Decrease (increase) in amounts receivable and prepaids	123,532	(379,620)
(Decrease) increase in trade payables and accrued liabilities	(602,511)	924,590
Change in non-cash operating working capital	(478,979)	544,970
Net cash flows used in operating activities	(1,983,882)	(2,196,816)
Financing activities
Proceeds from issuance of units (Note 5(b))	980,380	1,099,809
Unit issuance costs	(49,235)	(16,226)
Due to related company	(54,604)	(61,420)
Net cash flows from financing activities	876,541	1,022,163
Decrease in cash and cash equivalents	(1,107,341)	(1,174,653)
Cash and cash equivalents, beginning of year	1,176,596	2,351,249
Cash and cash equivalents, end of year	69,255	1,176,596
Cash and cash equivalents are comprised of:
Cash	69,255	276,596
Cash equivalents	-	900,000
Total	69,255	1,176,596
Supplemental information
Issuance of broker warrants	18,976	10,138
See accompanying notes to the consolidated financial statements

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