NevGold: Audited financial statements – 2021

NEVGOLD CORP.

Audited Consolidated Financial Statements

For the year ended December 31, 2021 and the period from incorporation on October 27, 2020 to December 31, 2020

(Expressed in Canadian dollars)

THE INDEPENDENT AUDITOR’S REPORT

TO THE SHAREHOLDERS OF NEVGOLD CORP.

Opinion

We have audited the consolidated financial statements of Nevgold Corp. and its subsidiaries (the “Company”), which include:  the consolidated statement of financial position as of December 31, 2021;  the consolidated statement of income and comprehensive income for the year then ended;  the consolidated statement of cash flows for the year then ended;  the consolidated statement of changes in equity for the year then ended; and  the 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 December 31, 2021, and its consolidated financial performance and its consolidated cash flows for the year then ended. date, in accordance with International Financial Reporting Standards (“IFRS”).

Basis of opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under these standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements part of our report. We are independent of the Company in accordance with ethical requirements applicable to our audit of the consolidated financial statements in Canada and have discharged our other ethical responsibilities in accordance with those 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 the continuity of operation

We draw attention to note 1 of the consolidated financial statements, which indicates that Nevgold Corp. is still at the exploration stage and as such the Company has not yet generated positive cash flow from its operating activities, no revenue has yet been generated and the Company has a accumulated deficit and as of December 31, 2021. As discussed in Note 1, these events or conditions, together with other matters set forth in Note 1, indicate that a material uncertainty exists that may cast material doubt on the ability of the Company to continue its activities. Our opinion is not modified in this respect.

Other material

The consolidated financial statements of the Company for the period from incorporation on October 27, 2020 to December 31, 2020 were audited by another auditor who expressed an unmodified opinion on these consolidated financial statements on March 9, 2021.

other information

The management is responsible for the other information. Other information includes the management report.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of conclusion of assurance thereon. As part of our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, to consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge acquired during the audit. audit or otherwise appear to be materially inaccurate.

We obtained the management report before the date of this auditors’ 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 deems 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 going concern issues, if any, and using the accounting principle going concern, unless management intends to liquidate the Company or cease operations or has no realistic alternative to doing so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance that the consolidated financial statements taken as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report containing our opinion. Reasonable assurance is a high level of assurance, but does not guarantee that an audit performed in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in the aggregate, they can reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit conducted in accordance with Canadian generally accepted auditing standards, we exercise our professional judgment and maintain professional skepticism throughout the audit. We have 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 in response to those risks, and obtain sufficient audit evidence and appropriate on which to base our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, because fraud may involve collusion, falsification, intentional omissions, misstatements or override of control internal.



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 accounting principle and, on the basis of the evidence obtained, on the existence or otherwise of a material uncertainty 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 auditors’ report to the related information provided in the consolidated financial statements or, if that information is inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions could cause the Company to cease operations.



Evaluate the overall presentation, structure, and content of the consolidated financial statements, including disclosures, and determine whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.



Obtain sufficient appropriate audit evidence regarding the financial information of entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other things, the planned scope and timing of the audit and significant audit findings, including any material 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 for independence, and to communicate with them all relationships and other matters that may reasonably be considered to impact our independence and , if applicable, the related warranties.

The partner responsible for the audit engagement that gave rise to this independent auditors’ report is Sukjhit Gill.

Chartered Professional Accountants

Vancouver, British Columbia

April 22, 2022

NEVGOLD CORP.

Consolidated Statements of Financial Position

(Expressed in Canadian dollars)

To noteDecember 31, 2021 $

Assets Current assets: Cash receivable Prepaid expenses

.

Non-current assets : Prepaid expenses Property, plant and equipment Right of use of assets

Exploration and evaluation assets Restoration guarantee

Total assetsLiabilities and equity

Current liabilities:

Accounts payable and accrued liabilities Lease obligation, current

Non-current liabilities: Rental obligation, non-current Total responsibilities

2,757,793 123,311 21,338 2,902,442

December 31, 2020 $

1 – – 1

393 439

5 8 6 7

45,716 299,563 7,432,226 33,597

11,106,983

– – – – 1

307,062

7,500

8

46 175 353 237

– 7,500

8

255 325 608 562

– 7,500

Equity: Share the capital

Reserve

Accumulated other comprehensive losses Deficits

Total equity

9 9

10,274,114

3,160,060

(33,861)

1 – –

(2,901,892)

10,498,421

(7,500) (7,499)

Total liabilities yearD equitythisthere

11,106,983

1

Commitments

15

These consolidated financial statements were approved by the Board of Directors on April 22, 2022. They are signed on behalf of the Board of Directors by:

“Brandon Bonifacio”

Director, President and Chief Executive Officer

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

1

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