Radio Fuels Energy : For the three months ended February 28, 2022 and 2021

RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Financial Statements

For the three months ended February 28, 2022 and 2021

(in Canadian dollars, unless otherwise stated)

(unaudited)

Notice of No Auditor Review of Condensed Interim Consolidated Financial Statements

Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the 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 the Company have been prepared by management and approved by the Audit Committee and Board of Directors of the Company. The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Statements of Financial Position (unaudited)

(in Canadian dollars)

February 28, 2022

November 30, 2021

Assets Current assets

Cash and cash equivalents Marketable securities (Note 5) Other receivables (Note 6) Prepaid expenses Restricted cash (Note 9)

$

8,423,343 $ 175,363

16,697,099 549,416

69,348 35,436

246,291 333,151

Exploration and evaluation assets (Note 7)

- 25,436,081 20,435,404

25,482,792 26,576,158

-

Total assets

$

45,871,485

$

26,576,158

Liabilities Current liabilities

Trade payables and accrued liabilities (Note 8)

$

Subscription receipts (Note 9)

Total liabilities

66,838 - 66,838

$

504,984 25,462,307 25,967,291

Equity

Share capital (Note 9) Contributed surplus (Note 10) Deficit

46,110,625 9,810,203 (10,116,181)

10,627,319 -

(10,018,452)

Total equity

45,804,647

608,867

Total liabilities and equity

$

45,871,485

$

26,576,158

Nature of operations (Note 1)

Subsequent events (Note 14)

Approved on behalf of the board:

Director "Denis Laviolette" (signed)

Director "Jack Campbell" (signed)

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

1

RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (unaudited)

For the three months ended February 28, 2022 and 2021 (in Canadian dollars)

2022

2021

Expenses:

Consulting fees (Note 11) Professional fees

$

678,697 $ 30,000

40,020 19,334

Investor relations, regulatory and filing fees Exploration and evaluation expenditures Office

162,066 4,896

4,105 2,821

- 58

(887,709) (54,288)

Unrealized gain (loss) on marketable securities Other income

770,653 (633,177)

19,327

-

Net loss and comprehensive loss for the period

Basic and diluted loss per share (Note 9 (c))

$ $

(97,729)

(0.00)

$ $

(687,465)

(0.06)

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

2

RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Statements of Changes in Equity (unaudited)

For the three months ended February 28, 2022 and 2021 (in Canadian dollars)

Number of common shares

Contributed

Share capital

Surplus Accumulated Deficit

Total

Balance at December 1, 2021

Shares issued on private placements (Note 9(b))

Shares issued on acquisiotn opf Radio Fuels Resources Corp. (Note 9(b)) Shaers issued on acquisition of exploration and evaluation asset (Note 9(b)) Cost of issuance - cash

Cost of issuance - units

• 17,319,233 $

10,627,319 $

- $

(10,018,452) $

608,867

63,707,024 58,823,529 2,000,000 - 100,000 - - -25,482,810 - - 25,482,810

20,000,000 - - 20,000,000

680,000

- - 15,139 150,642 9,644,422 -

- - - - (97,729)

680,000

(909,301)

(909,301)

Cost of issuance - broker warrants FMV of warrants issued Comprehensive loss for the period Balance at Februay 28, 2022

(9,644,422)

(150,642)

24,861

40,000 - -

-

(97,729)

141,949,786

$

46,110,625

$

9,810,203

$

(10,116,181) $

45,804,647

Number of common shares

Contributed

Share capital

Surplus Accumulated Deficit

Balance at December 1, 2020

Shares issued on private placement (Note 9(b))

Shares issued pursuant to Share Exchange Agreements (Note 9(b)) Comprehensive loss for the period

• 10,342,042 $

8,255,074

$

• - $ -(8,505,663) $

Total (250,589)

1,764,773 4,411,765 -

600,023 1,500,000 -

- -

- - (687,465)

600,023 1,500,000 (687,465)

Balance at February 28, 2021

16,518,580

$

10,355,097

$

-$

(9,193,128) $

1,161,969

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

3

RADIO FUELS ENERGY CORP.

(formerly Mainstream Minerals Corporation)

Condensed Interim Consolidated Statements of Cash Flows (unaudited)

For the three months ended February 28, 2022 and 2021 (in Canadian dollars)

2022

2021

Operating activities

Comprehensive loss for the period Adjustment for:

Unrealized (gain) loss on marketable securities Change in non-cash operating working capital

Other receivables

Prepaid expenses

Trade payables and accrued liabilities

Investing activities

Cash acquired from Radio Fuels Resources Corp. Purchases of marketable securities

Financing activities

Proceeds from share issuance, net of issuance costs

$

(97,729) $

(687,465)

(770,653)

633,177

(33,912) 232

86,860 683

(417,877) 56,737

(1,233,311)

3,364

284,812 (15,377,030) (15,092,218)

- - -

24,573,509 24,573,509

600,023 600,023

Increase in cash and cash equivalents

8,247,980

603,387

Cash and cash equivalents, beginning of period

175,363

841

Cash and cash equivalents, end of period

Supplementary information:

$

8,423,343

The Company did not pay any income taxes during the above reporting periods.

$

604,228

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

4