Financial statements
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SNOWLINE GOLD CORP. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars)
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Snowline Gold Corp. Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian Dollars) 2 The accompanying notes are an integral part of these condensed interim consolidated financial statements Note March 31, 2025 $ December 31, 2024 $ (Unaudited) (Audited) Assets Current assets Cash and cash equivalents 41,896,976 43,418,552 Receivables 172,946 1,368,209 Prepaids and deposits 1,188,611 927,437 Investments 3 135,000 102,500 43,393,533 45,816,698 Property and equipment 4 3,018,987 3,231,475 Deposits 60,000 60,000 Right-of-use asset 57,688 66,359 Reclamation bond 315,387 315,387 Resource properties 3 19,573,330 19,573,330 Total Assets 66,418,925 69,063,249 Liabilities Current liabilities Accounts payable and accrued liabilities 1,020,584 1,147,250 Lease liability 25,803 24,669 Deferred acquisition payments 3,8 - 244,864 Flow-through premium liability 6 8,799,189 9,351,843 Share-based compensation liabilities 7 137,177 16,609 9,982,753 10,785,235 Rehabilitation provision 11 769,260 763,878 Lease liability 16,731 16,037 Total Liabilities 10,768,744 11,565,150 Equity Attributable to Shareholders Share capital 7 116,351,193 115,622,905 Share subscriptions received 7 - 28,800 Contributed surplus 7 17,859,383 17,024,773 Deficit (78,560,395) (75,178,379) Total Shareholders’ Equity 55,650,181 57,498,099 Total Liabilities and Shareholders’ Equity 66,418,925 69,063,249 Nature of operations and going concern (Note 1 and 2) Contingencies (Note 3) Subsequent events (Note 15) Approved by the Board of Directors on May 30, 2025: “C. Hart” Director “C. Morrison” Director Craig Hart Calum Morrison
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Snowline Gold Corp. Condensed Interim Consolidated Statements of Loss and Comprehensive Loss For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 3 The accompanying notes are an integral part of these condensed interim consolidated financial statements Note Three months ended March 31, 2025 $ Three months ended March 31, 2024 $ Operating expenses Exploration expenditures 5 1,985,052 1,040,057 Share-based payment expense 7, 8 1,221,389 2,959,760 Wages and salaries 8 333,818 292,374 Investor relations 261,734 115,334 Depreciation 4 221,159 69,457 Office and miscellaneous 8 145,476 105,011 Professional fees 138,716 152,053 Transfer agent and regulatory fees 43,637 33,475 Consulting 13,018 40,240 Total operating expenses (4,363,999) (4,807,761) Loss before other Income (expenses) (4,363,999) (4,807,761) Other income (expenses) Accretion and lease interest (12,347) (18,474) Foreign exchange loss (7,438) (3,307) Finance income 459,170 394,998 Recovery on flow through share premium 6 552,654 319,349 Fair value adjustments (45,917) (15,159) Gain on investments 32,500 - Other income (expenses) 3,361 13,152 Total other income 981,983 690,559 Net loss and comprehensive loss (3,382,016) (4,117,202) Loss per share – basic and diluted (0.02) (0.03) Weighted average number of shares outstanding – basic and diluted 158,566,733 147,181,745
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Snowline Gold Corp. Condensed Interim Consolidated Statements of Cash Flows For the three months ended March 31, 2025 and 2024 (Expressed in Canadian Dollars) 4 The accompanying notes are an integral part of these condensed interim consolidated financial statements Three months ended March 31, 2025 $ Three months ended March 31, 2024 $ Cash Provided From (Used In) Operating Activities Net loss (3,382,016) (4,117,202) Items not affecting cash: Share-based payment expense 1,221,389 2,959,760 Depreciation 221,159 69,457 Accretion and lease interest expense 12,347 18,474 Fair value adjustments 45,917 15,159 Gain on investment (32,500) - Recovery on flow-through share premium (552,654) (319,349) Gain on sale of property and equipment - (4,084) Cash used in operations before working capital items (2,466,358) (1,377,785) Net change in working capital items Receivables 1,195,263 20,304 Prepaids and deposits (261,174) (598,551) Accounts payable and accrued liabilities (126,667) 34,476 Cash used in operations (1,658,936) (1,921,556) Investing Activities Purchase of property and equipment - (78,117) Proceeds from sale of property and equipment - 13,000 Deferred acquisition payment (250,000) (250,000) Cash used in investing activities (250,000) (315,117) Financing Activities Proceeds from warrants exercised - 12,500,000 Proceeds from options exercised 387,360 268,153 Cash provided by financing activities 387,360 12,768,153 Change in cash and cash equivalents (1,521,576) 10,531,480 Cash and cash equivalents – beginning 43,418,552 35,794,481 Cash and cash equivalents – end 41,896,976 46,325,961 Cash and cash equivalents consisted of: Cash deposited with a Canadian Senior Bank $ 259,681 $ 13,904,927 Term deposits and guaranteed investment certificates issued 41,637,295 32,421,034 $ 41,896,976 $ 46,325,961 Supplemental cash flow (Note 10)
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Snowline Gold Corp. Condensed Interim Consolidated Statements of Changes in Shareholders’ Equity For the three months ended March 31, 2025 and 2024 (Expressed in Canadian Dollars) 5 The accompanying notes are an integral part of these condensed interim consolidated financial statements Common Shares # Share Capital $ Share Subscriptions received $ Contributed Surplus $ Deficit $ Total $ Balance – December 31, 2024 158,517,166 115,622,905 28,800 17,024,773 (75,178,379) 57,498,099 Issued: Options exercised 211,000 728,288 (28,800) (312,128) - 387,360 Share-based payment expense - - - 1,146,738 - 1,146,738 Net loss - - - - (3,382,016) (3,382,016) Balance – March 31, 2025 158,728,166 116,351,193 - 17,859,383 (78,560,395) 55,650,181 Balance – December 31, 2023 146,897,470 73,315,510 - 10,382,767 (43,953,123) 39,745,154 Issued: Warrants exercised 5,000,000 14,821,821 - (2,321,821) - 12,500,000 Options exercised 223,150 460,514 - (192,361) - 268,153 Share-based payment expense - - - 2,895,719 - 2,895,719 Net loss - - - - (4,117,202) (4,117,202) Balance – March 31, 2024 152,120,620 88,597,845 - 10,764,304 (48,070,325) 51,291,824
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 6 1. Corporate Information and nature of operations Snowline Gold Corp. (the “Company” or “Snowline”) is a Canadian publicly traded mineral exploration company headquartered in Vancouver, BC, that is listed on the TSX Venture Exchange (“TSX -V”) under the symbol “SGD”. The Company’s registered office is 2200 – 885 West Georgia Street, Vancouver, British Columbia, Canada. The Company is in the process of exploring its resource properties and has not yet determined whether the resource properties contain reserves that are economically recoverable. The business of mining and exploring for resources involves a high degree of r isk and there can be no assurance that planned exploration and development programs will result in profitable mining operations. The recoverability of amounts capitalized for the resource properties are dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete the development of the properties and upon future profitable production or proceeds from the disposition thereof. Changes in future conditions could require material write-downs of the carrying values of resource properties. 2. Basis of Presentation Statement of Compliance These condensed interim consolidated financial statements have been prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting. The condensed interim consolidated financial statements should be read in conjunction with the consolidated annual financial statements for the year ended December 31, 2024, which have been prepared in accordance with IFRS. The Company has used the same accounting policies and methods of computation in these condensed interim consolidated financial statements as in the consolidated annual financial statements for the year ended December 31, 2024. The Company’s interim results are not necessarily indicative of its results for a full year. These condensed interim consolidated financial statements were approved by the Board of Directors and authorized for issue on May 30, 2025. Basis of Measurement These condensed interim consolidated financial statements have been prepared on historical cost basis, except for certain assets and liabilities measured at fair value. These condensed interim consolidated financial statements are presented in Canadian dollars, which is also the Company’s functional currency. The preparation of condensed interim consolidated financial statements in compliance with IFRS requires management to make certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. Going Concern and Continuance of Operations These condensed interim consolidated financial statements have been presented on the basis that the Company will continue as a going concern, which contemplates the realization of assets and discharge its liabilities and commitments in the normal course of business. Realization values may be substantially different from the carrying values shown and these condensed interim consolidated financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At March 31, 2025, the Company had an accumulated deficit of $78,560,395 (December 31, 2024 - $75,178,379) since inception, and the Company’s working capital was $33,410,780 (December 31, 2024 - $35,031,463). The Company is a resource exploration stage company,
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 7 which does not generate any revenue and has been relying mainly on equity -based financing to fund its operations. The Company will require additional financing either through equity or debt financing, sale of assets, joint venture arrangements, or a combination thereof to meet its administrative costs and to continue to explore and develop its resource properties. While the Company has been successful in securing financing in the past, there is no assurance that it will be able to do so in the future. These factors give rise to a material uncertainty that may cast substantial doubt about the Company’s ability to continue as a going concern. The Company’s financial condition and results of operations may be negatively affected by economic and other consequences of world events. While the Company expects any direct impacts of world events to the current and future business to be limited, the indirect impacts on the economy, supply chain, tariffs and industries in general could negatively affect the business and may make it more difficult for it to raise equity or debt financing. Basis of consolidation These condensed interim consolidated financial statements include the results or financial information of Snowline Gold Corp. and its wholly owned subsidiary, Senoa Gold Corp (“Senoa”). 3. Resource Properties The Company has capitalized the following acquisition costs of its resource properties during the period ended March 31, 2025 and the year ended December 31, 2024: Balance, December 31, 2023 $ 11,238,906 Cash component – acquisition cost (d) 1,200,000 Share issuance – acquisition cost (d) 6,163,080 Transaction costs (d) 48,844 Resource bonus payment (a) 1,000,000 Cash component – acquisition cost (e) 50,000 Consideration received (c) (127,500) Balance, December 31, 2024 and March 31, 2025 $ 19,573,330 a) Acquisition of Senoa Gold Corp. On December 1, 2020, the Company entered into a purchase agreement with 18526 Yukon Inc. (“18526”), pursuant to which the Company agreed to acquire all of the issued and outstanding shares in the capital of Senoa then held by 18526 (the “Transaction”). As a result of the Transaction, the Company acquired the Einarson (as to 70% with the balance owned by a third party, with the remaining 30% being acquired in May 2024), Rogue, Tosh, Cliff, Rainbow, Cynthia and Ursa claims located in the Yukon (the "Properties"). The consideration of the Transaction consists of: (i) 25,650,000 common shares issued; and (ii) cash payments to 18526 as follows: • $1,000,000 on closing of the Transaction (paid); • $250,000 on the first anniversary of closing of the Transaction (paid); • $250,000 on the second anniversary of closing of the Transaction (paid); • $250,000 on the third anniversary of the closing of the Transaction (paid); • $250,000 on the fourth anniversary of closing of the Transaction (paid); and • a contingent $1,000,000 resource bonus (to be paid on each of the seven Properties for an aggregate of up to $7,000,000 (the “Resource Bonus”) upon Snowline establishing a Measured
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 8 Mineral Resource, an Indicated Mineral Resource or an Inferred Mineral Resource (or any combination thereof) of at least 1,000,000 ounces of gold on any of the seven Properties. ) The Resource Bonus is a one-time payment for each of the Properties ($1,000,000 paid). During the year ended December 31, 2024, the Company announced an initial Mineral Resource Estimate (“MRE”) defined for the Valley Gold Deposit, located on the Company’s 100% owned Rogue Project. As a result of the MRE, the Company paid a $1,000,000 resource bonus to 18526 (see Note 8) . This payment has been capitalized to resource properties. 18526 will retain a royalty equal to 2.0% of the net smelter returns in respect of each of the Properties, of which the Company may buy back one half (1.0%) at any time for 1,000 ounces of gold (.9999 fine) which may be satisfied in cash or in kind. The Transaction received Canadian Securities Exchange approval on February 25, 2021. During the three months ended March 31, 2025, the Company recorded accretion expense of $5,136 (year ended December 31, 2024 - $37,409) related to the deferred cash payments. The Company has not recognized a liability for the contingent consideration related to the Resource Bonus at the acquisition date. Any liability for the Resource Bonus will be recognized when it becomes probable that the precedent conditions will be met. The changes in the deferred acquisition payments are as follows: Balance, December 31, 2023 $ 457,455 Accretion 37,409 Payment (250,000) Balance, December 31, 2024 $ 244,864 Accretion 5,136 Payment (250,000) Balance, March 31, 2025 $ - March 31, 2025 December 31, 2024 Current portion of deferred acquisition payments $ - $244,864 Long-term portion of deferred acquisition payments - - $ - $244,864 b) Property option agreement On September 1, 2021, the Company entered into a property option agreement with Epica Gold Inc., a wholly owned subsidiary of HighGold Mining Inc., and Carlin Gold Corporation (together the “Optionors”), pursuant to which the Company acquired the option (the “Option”) to purchase a 100% interest in 812 mining claims surrounding the Cynthia project for total cash consideration of $100,000 and 1,000,000 common shares. The Company has completed all required cash and common share payments and owns the claims , subject to a 2% net smelter returns royalty, with a 1% buy-back provision for $2,000,000. c) Botto claims acquisition On May 19, 2023, the Company entered into an agreement with arm's length parties RST Klondike Discoveries Ltd. and Whistler Minerals Corp. (the “Vendors”), whereby the Company acquired 92 mineral claims in the vicinity of the Rogue Project in exchange for (i) the payment of $1,000,000 in cash and (ii) the issuance of 200,000 warrants, each for purchase of a single common share of the Company at a price of $3.50 for a period of two years (the "Acquisition").
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 9 The Vendors will retain a 1.0% NSR on the claims and will be entitled to up to two bonus payments of $1,000,000 each if a measured or indicated mineral resource of greater than 1 million ounces of gold is disclosed in compliance with NI 43-101 standards on certain claims. The bonus payments are a contingent liability and have not been recognized. On May 8, 2024, the Company entered into an Option Agreement with Epica Gold Inc. and its parent, Onyx Gold Corp. (“Onyx”), to sell certain mining claims in the Botto claims package. To acquire the claims, Onyx is required to issue: • 500,000 common shares upon the TSX Venture exchange of approval of the agreement (July 5, 2024, the “Effective Date”). • 500,000 common shares on or before the first anniversary of the Effective Date. • 500,000 common shares on or before the second anniversary of the Effective Date. • 1,500,000 common shares on or before the third anniversary of the Effective Date. The Company received the first 500,000 common shares on July 8, 2024. The Common shares of Onyx were valued at $127,500 based on the market price of $0.255 per share on issuance date. During the three months ended March 31, 2025, the Company recorded a fair value gain of $32,500 (2024 - $Nil) in connection with revaluation of the shares. d) Anthill acquisition On April 22, 2024, the Company entered into an agreement with Anthill Resources Ltd. (“Anthill”) to acquire the remaining 30% interest in 3,003 mineral claims at the Einarson property in exchange for (i) payment of $1,200,000 in cash, (ii) issuance of 1,012,000 common shares of the Company and (iii) contingent payment of $1,000,000 resource bonus (to be paid on each of the seven Properties for an aggregate of up to $7,000,000 (the “Resource Bonus”) ) upon Snowline establishing a Measured Mineral Resource, an Indicated Mineral Resource or an Inferred Mineral Resource (or any combination thereof) of at least 1,000,000 ounces of gold on any of the seven Properties. The Company has not recognized a liability for the contingent consideration related to the Resource Bonus at the acquisition date. Any liability for the Resource Bonus will be recognized when it becomes probable that the precedent conditions will be met. The Company completed the terms of the agreement and acquired the 30% interest in May 2024. The value of the common shares was estimated at $6,163,080 using the closing market share price on the day prior to the issuance of shares of $6.09. Anthill will retain a 2% net smelter returns royalty, with a 1% buy -back provision equivalent to the value of 1,000 ounces of gold on certain claims, which may be satisfied in kind or in cash (using the value of 1,000 ounces of gold shall be equal to the average of the London p.m. fix quoted by the London Bullion Market Association) at the discretion of the Company. e) Strategic Metals acquisition In May 2024, the Company completed an agreement with Strategic Metals Ltd. (“Strategic”) to acquire 76 claims in Mayo mining district, Yukon in exchange for a cash payment of $50,000. Strategic will retain a 2% net smelter returns royalty with a 1% buy-back provision equivalent to the value of 1,000 ounces of gold, which may be satisfied in kind or in cash in US Dollars.
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 10 4. Property and equipment The continuity of property and equipment as at March 31, 2025 and December 31, 2024 is as follows: Land and Building Valley Camp Forks Camp Equipment Total $ $ $ $ $ Cost Balance, December 31, 2023 837,575 - 379,091 703,163 1,919,829 Additions 51,411 1,608,045 221,588 378,450 2,259,494 Dispositions - - - (8,916) (8,916) Balance, December 31 , 2024 and March 31, 2025 888,986 1,608,045 600,679 1,072,697 4,170,407 Accumulated depreciation Balance, December 31, 2023 8,376 - 159,438 158,336 326,150 Depreciation 33,503 217,048 135,739 226,492 612,782 Balance, December 31, 2024 41,879 217,048 295,177 384,828 938,932 Depreciation 8,376 102,537 37,542 64,033 212,488 Balance, March 31, 2025 50,255 319,585 332,719 448,861 1,151,420 Net book value December 31, 2024 847,107 1,390,997 305,502 687,869 3,231,475 March 31, 2025 838,731 1,288,460 267,960 623,836 3,018,987 In addition to the above depreciation, depreciation expense associated with the right of use asset for the three months ended March 31, 2025 was $8,671 (2024 - $8,671).
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 11 5. Exploration expenditures During the three months ended March 31, 2025, the Company incurred exploration expenses on its properties, as follows: Exploration expenses Cliff Cynthia Einarson Rogue Valley Tosh Ursa Olympus Total $ $ $ $ $ $ $ $ $ Consulting - 1,467 1,175 29,931 448,490 - 155 256 481,474 Assaying - 3,587 19,362 9,761 84,892 - - - 117,602 Field labour and lodging 205 48,803 149,564 163,025 462,969 117 233 1,781 826,697 Field equipment and supplies - 4,730 22,328 12,869 68,066 - - - 107,993 Fixed wing air support - 364 1,720 991 5,398 - - - 8,473 Helicopters - 393 1,857 1,070 5,826 - - - 9,146 Software - 6,040 28,515 16,435 89,478 - - - 140,468 Environmental - 233 1,099 1,074 98,640 - - - 101,046 Travel - 350 1,654 953 5,190 - - - 8,147 Other - 7,912 37,353 21,529 117,212 - - - 184,006 Total 205 73,879 264,627 257,638 1,386,161 117 388 2,037 1,985,052 During the three months ended March 31, 2024, the Company incurred exploration expenses on its properties, as follows: Exploration expenses Cliff Cynthia Einarson Rainbow Rogue Valley Tosh Ursa Olympus Total $ $ $ $ $ $ $ $ $ $ Consulting - 130 230 - 44,367 65,276 - 202 333 110,538 Staking - 537 946 - 76,817 - - 832 1,376 80,508 Assaying 2,870 - 9,379 - 118,270 - 4,937 - - 135,456 Drilling - - - - 46,897 - - - - 46,897 Field labour and lodging 6,907 4,552 18,441 2,177 355,369 - 5,750 3,755 21,201 418,152 Field equipment and supplies - 108 2,162 - 14,707 - - 166 278 17,421 Environmental - - 10,936 - 11,449 95,575 - - - 117,960 Travel - 126 222 - 17,404 - - 196 323 18,271 Other - 635 10,780 - 80,826 - - 985 1,628 94,854 Total 9,777 6,088 53,096 2,177 766,106 160,851 10,687 6,136 25,139 1,040,057
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 12 6. Flow-Through Share Premium The flow through share premium liability does not represent a cash liability to the Company and is to be fully amortized to the statement of loss and comprehensive loss pro-rata with the amount of qualifying expenditures that will be incurred. Flow-through share premium liabilities include the liability portion of the flow-through shares issued. The following is a continuity schedule of the liability portion of the flow-through shares issuance. Balance at December 31, 2023 $ 8,137,553 Liability arising from issuance of flow through shares (Note 7) 13,309,157 Recoveries on flow through premium liabilities (12,094,867) Balance at December 31, 2024 $ 9,351,843 Recoveries on flow through premium liabilities (552,654) Balance at March 31, 2025 $ 8,799,189 Current flow-through premium liability (8,799,189) Long-term flow-through premium liability $ - 7. Share Capital and Reserves Common Shares: The Company is authorized to issue an unlimited number of common shares without par value. a) For the three months ended March 31, 2025: During the three months ended March 31, 2025, 211,000 common shares were issued upon exercises of stock options for gross proceeds of $416,160, out of which $28,800 was received as at December 31, 2024. The fair value of $312,128 was moved from contributed surplus to share capital in connection with the exercise. b) For the year ended December 31, 2024: On April 25, 2024, Company issued 4,090,750 flow -through common shares for gross proceeds of $31,907,850. The Company allocated $18, 589,693 to the shares and $13, 309,157 to the flow-through liability and incurred share issuance costs of $1,737,570. Common Shares Flow-through premium liability Share issue costs Gross Proceeds $18,598,693 $13,309,157 $1,737,570 $31,907,850 On May 15, 2024, the Company issued 1,012, 000 common shares with the fair value of $6,163,080 in connection with the mineral property agreement (Note 3(d)). During the year ended December 31, 2024, 345,800 common shares were issued upon exercises of stock options for gross proceeds of $588,956 and 6,171,146 common shares were issued upon exercises of warrants for gross proceeds of $15,427,865. Stock options: On August 14, 2023, the shareholders approved the Company’s Omnibus Incentive Plan, which includes and reserves for issuance up to a maximum of 10% of the issued and outstanding common shares of the Company. Within this 10% limit, a maximum of 3,500,000 can be allocated for awards other than stock options. Prior to
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 13 the adoption of the Omnibus Incentive Plan the Company had a 10% “rolling” stock option plan, whereby the aggregate number of Common Shares reserved for issuance, shall not exceed 10% of the total number of issued and outstanding Common Shares at the time of the option grant. The Omnibus Incentive Plan replaced the 10% “rolling” stock option plan. The stock options granted under the old plan continue to be governed by the old plan. During the three months ended March 31, 2025, the Company did not grant stock options. During the three months ended March 31, 2024, the Company granted 150,000 stock options. The Company recorded share- based payment expense related to options vested during the three months ended March 31, 2025 of $930,441 (2024 – $2,872,354). The fair value of the stock options granted during the three months ended March 31, 2024 was calculated using the Black -Scholes option pricing model with the following weighted average assumptions: March 31, 2024 Weighted average risk-free interest rate 3.34% Weighted average expected life in years 5 Weighted average expected volatility 100% Expected dividends Nil Weighted average exercise price $5.38 A summary of stock options outstanding as at March 31, 2025 and December 31, 2024 and the changes for the periods then ended is presented below: Number of stock options Weighted average exercise price $ Weighted average remaining life (Years) Balance outstanding – December 31, 2023 10,720,150 2.29 3.61 Granted 150,000 5.38 - Exercised (345,800) 1.70 - Forfeited (50,000) 4.93 - Expired (5,350) 3.02 - Balance outstanding – December 31, 2024 10,469,000 2.34 2.65 Exercised (211,000) 1.97 - Balance outstanding – March 31, 2025 10,258,000 2.35 2.41 Balance vested – March 31, 2025 8,048,000 1.81 2.12 The weighted average trading price of the Company's shares on the dates of the exercises of stock options was $7.78 for the three months ended March 31, 2025 (2024 - $5.54).
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 14 As at March 31, 2025, options enabling the holders to acquire common shares are as follows: Expiry date Number of options Number of vested options Weighted average remaining life in years Weighted average exercise price February 25, 2026 2,500,000 2,500,000 0.91 $ 0.30 July 12, 2026 20,000 20,000 1.28 $ 0.35 January 18, 2027 1,025,000 1,025,000 1.80 $ 0.55 March 8, 2027 300,000 300,000 1.94 $ 0.80 July 22, 2027 853,000 853,000 2.31 $1.76 December 29, 2027 2,220,000 1,764,000 2.75 $2.88 February 22, 2028 500,000 400,000 2.90 $2.17 May 30, 2028 270,000 158,000 3.17 $3.15 December 21, 2028 2,420,000 968,000 3.73 $4.93 February 1, 2029 150,000 60,000 3.84 $5.38 10,258,000 8,048,000 2.41 $2.35 Restricted Share Units (“RSUs”): The Company has an Omnibus Incentive P lan pursuant to which it may grant RSUs to directors, officers, employees, and consultants. During the three months ended March 31, 2025, the Company did not grant any RSUs (2024 – 50,000) and recorded a share-based payment expense related to the RSUs of $216,297 (2024 - $87,406). The Company also recorded a fair value adjustment of $45,917 (2024 - $15,159) in connection with the cash-settled RSUs granted in December 2024 (2024 – December 2023). The Company has the option of settling the RSUs granted on February 1, 2024 in cash or common shares and is expecting to settle these RSUs in common shares. Total value of the RSUs granted on February 1, 2024 is $289,000 based on the closing share price of $5.78 on the date prior to the grant date. One-half of the RSUs vest on August 1, 2025, and one-half vest on February 1, 2027. The Company has the option of settling the 160,000 RSUs granted on November 29, 2024 in cash or common shares and is expecting to settle these RSUs in common shares. Total value of the RSUs granted on November 29, 2024 is $856,000 based on the closing share price of $5.35 on the date prior to the grant date. One-half of the RSUs vest on May 29, 2026, and one-half vest on November 29, 2027. The Company has the option of settling the 114,600 RSUs granted on December 10, 2024 in cash or common shares and is expecting to settle these RSUs in common shares. Total value of the RSUs granted on December 10, 2024 is $607,380 based on the closing share price of $5.30 on the date prior to the grant date. One-half of the RSUs vest on June 10, 2026, and one-half vest on December 10, 2027. The Company has the option of settling the 56,495 RSUs granted on December 10, 2024 in cash or common shares and is expecting to settle these RSUs in cash. Total value of the RSUs granted on December 10, 2024 is $299,424 based on the closing share price of $5.30 on the date prior to the grant date. These RSUs vest in full on December 10, 2025.
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 15 A continuity of the share-based compensation liabilities in connection with these RSUs is as follows: Balance – December 31, 2023 $ 7,037 Fair value adjustment 10,696 Share-based compensation for the year 275,424 Forfeitures (95,472) Settlement (181,076) Balance – December 31, 2024 $ 16,609 Fair value adjustment 45,917 Share-based compensation 74,651 Balance – March 31, 2025 $ 137,177 As at March 31, 2025 outstanding RSUs are as follows: Vesting date Number of RSUs August 1, 2025 25,000 December 10, 2025 56,495 May 29, 2026 80,000 June 10, 2026 57,300 February 1, 2027 25,000 November 29, 2027 80,000 December 10, 2027 57,300 Balance – March 31, 2025 381,095 A summary of RSUs outstanding as at March 31, 2025 and December 31, 2024 and the changes for the periods then ended is presented below: Balance outstanding – December 31, 2023 51,825 Forfeited (16,320) Vested (35,505) Granted 381,095 Balance outstanding – December 31, 2024 and March 31, 2025 381,095 Deferred Share Units (“DSUs”): On July 10, 2024, the Company issued 75,000 DSUs and on November 29, 2024, issued 100,000 DSUs in accordance with the Company’s Omnibus Incentives Plan. The DSUs vest immediately and become payable upon termination of service. DSUs are expected to be settled in common shares of the Company. DSUs are valued by reference to the closing market price of the shares on the day prior to the grant. The value of the DSUs with the grant date of July 10, 2024 was $408,750 and the value of the DSUs with the grant date of November 29, 2024 was $535,000, which was recorded as a share-based payments expense in these consolidated financial statements. A summary of DSUs outstanding as at March 31, 2025 and December 31, 2024 and the changes for the periods then ended is presented below: Balance outstanding – December 31, 2023 - Granted 175,000 Balance outstanding – December 31, 2024 and March 31, 2025 175,000
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 16 Warrants: A summary of warrants outstanding as at March 31, 2025 and December 31, 2024 and the changes for the periods then ended is presented below: Number of warrants Weighted average exercise price $ Weighted average remaining life (Years) Balance outstanding – December 31, 2023 6,371,146 2.57 0.59 Exercised (6,171,146) 2.50 - Balance outstanding – December 31, 2024 200,000 3.50 0.41 Balance outstanding – March 31, 2025 200,000 3.50 0.16 The weighted average trading price of the Company's shares on the dates of the exercises of warrants was $5.96 for the year ended December 31, 2024. As at March 31, 2025 warrants enabling the holders to acquire common shares are as follows: Expiry date Number of warrants Weighted average remaining life in years Weighted average exercise price May 30, 2025 200,000 0.16 $3.50 200,000 0.16 $3.50 8. Related Party Transactions During the three months ended March 31, 2025 and 2024, the Company incurred the following expenditures with key management personnel, being the Chief Executive Officer, Chief Financial Officer, Vice President Exploration, Vice President Sustainability & External Relations, and Chief Geologist; as well as directors of the Company. A summary of the Company’s related party transactions is as follows: 2025 $ 2024 $ Director fees1 51,000 45,000 Share-based compensation 646,553 1,721,702 Salaries and other compensation1 276,346 217,070 Rent2 8,102 8,102 982,001 1,991,874 1 Recorded in Wages and salaries 2 Recorded in Office and miscellaneous At March 31, 2025, amounts owed to related parties, comprised of amounts owing to key management and directors, totaled $nil (December 31, 2024 - $nil). During the year ended December 31, 2024, the Company made a $1,000,000 resource bonus payment to 18526 as a result of the MRE defined for the Valley Gold Deposit (note 3(a)). The CEO is a 40% shareholder of 18526.
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 17 During the three months ended March 31, 2025 , The Company made a payment of $250,000 ( 2024 - $250,000) to 18526 in connection with acquisition of Senoa (Note 3(a)). Except as disclosed elsewhere, the Company incurred the following with companies controlled by officers of the Company for the three months ended March 31, 2025 and 2024: Related party Nature of transactions Roma Capital Corp. (Matthew Roma, Officer) Professional fees & rent 9. Loss per Share Three months ended March 31, 2025 Three months ended March 31, 2024 Loss attributable to common shareholders ($) (3,382,016) (4,117,202) Weighted average number of common shares outstanding 158,566,733 147,181,745 Loss per share attributed to common shareholders ($) (0.02) (0.03) Diluted loss per share for the three months ended March 31, 2025 and 2024, did not include the effect of 10,258,000 ( 2024 – 10,647,000) share purchase options, 200,000 ( 2024 – 1,371,146) common share purchase warrants, 381,095 (2024 – 101,825) RSUs and 175,000 (2024 - Nil) DSUs as they are anti-dilutive. 10. Supplemental Cash Flow Information Other cash flow information relating to operating activities is presented below. Investing and financing activities that do not have a direct impact on current cash flows are excluded from the statements of cash flows. As at, and during the three months ended March 31, 2025 and 2024, the following transactions were excluded from the consolidated statements of cash flows: Three months ended March 31, 2025 Three months ended March 31, 2024 $ $ Cash paid for interest - - Cash received for interest 459,170 394,998 Cash paid for taxes 447,305 52,917 Non-cash investing and financing transactions Fair value transferred from contributed surplus on exercise of warrants - (2,321,821) Fair value transferred from contributed surplus on exercise of options (312,128) (192,361) 11. Rehabilitation Provision On October 1, 2023, the Company recognized a rehabilitation provision in connection with its property , exploration activities and equipment.
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 18 Reconciliation of the Company’s carrying amount of the rehabilitation provision at March 31, 2025 and December 31, 2024 is as follows: Balance – December 31, 2023 $ 364,364 Additions 284,415 Change in estimate 96,839 Accretion 18,260 Balance – December 31, 2024 763,878 Accretion 5,382 Balance – March 31, 2025 $ 769,260 The present value of the provision of $760,260 at March 31, 2025 was calculated using the risk -free rate of 2.47% and an average inflation rate of 2.00%. During the year ended December 31, 2024, the Company added $284,415 to the rehabilitation provision in connection with Anthill acquisition and additions to the Valley Camp. The present value of the provision at December 31, 2024 was calculated using the risk-free rate of 2.87% and an average inflation rate of 2.00%. Rehabilitation activities are expected to begin at the end of 2027. The undiscounted value of the obligation is $773,941. 12. Segmented Information The Company operates in a single reportable operating segment, being the exploration and development of mineral properties. For the three months ended March 31, 2025 and 2024, the mineral property interests are located in Canada, and all of the exploration expenditures are incurred in Canada. Please see Notes 3 and 5 for resource property acquisition costs and related exploration expenses. 13. Commitments During the three months ended March 31, 2025, the Company incurred $1,324,953 (2024 - $1,060,020) in Qualifying Canadian exploration expenses (“CEE”) and amortized a total of $552,654 (2024 - $319,349) of its flow-through liabilities. As at March 31, 2025, the Company must spend another $21,095,490 of Qualifying CEE by December 31, 2025 to satisfy its remaining current flow-through liabilities of $8,799,189. As of December 31, 2024, the Company spent $16,500,000 of Qualifying CEE in connection with the September 2023 flow-through financing and fully amortized the related flow-through premium liability. In April 2024, the Company raised an additional $31,907,850 (Note 7) in flow-through funds and recognized a flow-through liability of $13, 309,157. As of December 31, 2024, the Company must spend $22,420,443 of Qualifying CEE by December 31, 2025 to satisfy its flow-through liability of $9,351,843 in connection with the April 2024 flow-through financing. 14. Financial instruments a) Management of capital: The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern, to pursue the development of its assets and to maintain a flexible capital structure that optimizes the cost of capital within a framework of acceptable risk. In the management of capital, the Company includes the components of amounts attributable to shareholders.
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 19 The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust its capital structure, the Company may issue new shares, issue new debt, and or acquire or dispose of assets. The Company is dependent on the capital markets as its primary source of operating capital and the Company’s capital resources are largely determined by the investment appetite in the mineral resource market and its ability to compete for investor support in this market. The Company is not subject to any capital requirements and there is no change during the three-month period ended March 31, 2025. b) Classification of financial instruments: The Company’s financial instruments consist of cash, cash equivalents, receivables, deposits , investments, accounts payable and accrued liabilities, lease liability , share-based compensation liabilities, and deferred acquisition payments. The Company’s cash and cash equivalents , investments and share-based compensation liabilities are classified and measured at fair value. The C ompany’s receivables, deposits, accounts payable and accrued liabilities, lease liability and deferred acquisition payments are classified as and measured at amortized cost. c) Fair Value of Financial Instruments: The Company classified its fair value measures within a fair value hierarchy, which reflects the significance of inputs used in making the measurements as defined in IFRS 7 – Financial Instruments: Disclosures. Level 1 – Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets. Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs which are supported by little or no market activity. As at March 31, 2025 and December 31 , 2024, the Company had measured cash, cash equivalents and investments at fair value through profit or loss. The carrying amounts of receivables, deposits and accounts payable and accrued liabilities approximate their fair values due to the short -term maturities of these instruments. The Company values share-based compensation liabilities based on the closing market price of its common shares, which is a Level 2 measure. d) Financial instruments risk exposure: Credit Risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The financial instruments that potentially subject the Company to a significant concentration of credit risk consist of cash and cash equivalents. The Company mitigates its exposure to credit loss associated with cash and cash equivalents by placing its cash and cash equivalents in major financial institutions. As at March 31, 2025, the Company had cash equivalents of $41,637,295 in term deposits (December 31, 2024 - $42,188,197) that are cashable in no more than 90 days and bear interest up to 4.91% (December 31, 2024 - 4.91%). Interest income on term deposits during the three months ended March 31, 2025 was $459,170 (2024 - $394,998).
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Snowline Gold Corp. Notes to the Condensed Interim Consolidated Financial Statements For the three months ended March 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars) 20 Interest Rate Risk Interest rate risk is the risk that the Company is exposed to the risk that the value of financial instruments will change due to movements in market interest rates. As at March 31, 2025, the Company did not have debt instruments exposed to variable interest rates. Liquidity Risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities. To mitigate the risk, the Company reviews its working capital position regularly to ensure there is sufficient capital in order to meet short -term business requirements, after taking into account the Company’s holdings of cash. The Company's operating cash requirements are continuously monitored and adjusted as input variables change. 15. Subsequent events i) On April 3, 2025, the Company completed a bought deal flow-through private placement pursuant to which the Company issued 1, 875,000 common shares at a price of $10.68 for gross proceeds $20,025,000. In connection with the private placement, the Company paid a cash commission equal to 5% of the gross proceeds. ii) On April 10, 2025, 20,000 stock options with an exercise price of $2.88 were exercised by a consultant of the Company for proceeds of $57,600. iii) On April 11, 2025, the Company issued 175,000 RSUs and 300,000 stock options to incoming Officers of the Company. The RSUs vest over a three-year period, and the stock options have an exercise price of $8.29 and vest over two and a half years. iv) On May 28, 2025, 200,000 warrants with an exercise price of $3.50 were exercised for proceeds of $700,000.