AMARC RESOURCES LTD.
FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2024 and 2023
(Expressed in Canadian Dollars)
(Unaudited)
Notice to Reader
In accordance with subsection 4.3(3) of National Instrument 51-102, management of the Company advises that the Company's auditors have not performed a review of these interim financial statements.
Amarc Resources Ltd.
Condensed Interim Statements of Financial Position
(Unaudited - Expressed in Canadian Dollars)
December 31, | March 31, | ||
2024 | 2024 | ||
Note | ($) | ($) | |
ASSETS | |||
Current assets | 3 | 1,449,437 | 9,007,042 |
Cash | |||
Amounts receivable and other assets | 6 | 350,599 | 216,124 |
Marketable securities | 4 | 22,286 | 41,587 |
Non-curr nt sets | 5 | 1,822,322 | 9,264,753 |
Restricted cash | 514,828 | 534,828 | |
Right-of-use asset | 14 | 26,901 | 42,033 |
Total assets | 2,364,051 | 9,841,614 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities | 8 | 385,345 | 1,128,808 |
Accounts payable and accrued liabilities | |||
Advanced contributions received | 7(b, c) | 829,060 | 5,132,721 |
Balances due to related parties | 12 | 54,230 | 147,333 |
Flow through liability | 10 | 769,231 | 769,231 |
Lease liability | 14 | 25,640 | 23,443 |
2,063,506 | 7,201,536 | ||
Non-current liabilities | 9 | 898,405 | 784,947 |
Director's loan | |||
Lease liability | 14 | 9,250 | 28,764 |
Total liabilities | 2,971,161 | 8,015,247 | |
Shareholders' equity (deficiency) | 11 | 67,784,821 | 67,236,421 |
Share capital | |||
Reserves | 11 | 4,810,256 | 4,617,658 |
Accumulated deficit | (73,202,187) | (70,027,712) | |
(607,110) | 1,826,367 | ||
Total liabilities and shareholders' equity | 2,364,051 | 9,841,614 | |
Nature of operations and going concern (note 1)
Events after the reporting period (note 16)
The accompanying notes are an integral part of these condensed interim financial statements.
/s/ Robert A. Dickinson | /s/ Scott D. Cousens |
Robert A. Dickinson | Scott D. Cousens |
Director | Director |
3 | P a g e
Amarc Resources Ltd.
Condensed Interim Statements of Loss
(Unaudited - Expressed in Canadian Dollars, except for weighted average number of common shares)
Three months ended December 31, | Nine months ended December 31, | ||||||||
Note | 2024 | 2023 | 2024 | 2023 | |||||
($) | ($) | ($) | ($) | ||||||
enses | 7 | 5,243,030 | 1,712,024 | 20,717,450 | 9,182,161 | ||||
Exploration and evaluation | |||||||||
Assays and analysis | 753,315 | 245,484 | 1,579,600 | 1,120,316 | |||||
Drilling | 709,392 | - | 5,390,860 | - | |||||
Environmental | 39,453 | 23,370 | 69,471 | 58,506 | |||||
Equipment rental | 154,178 | 125,158 | 396,828 | 290,826 | |||||
Freight | 176,036 | 11,683 | 444,300 | 59,693 | |||||
Geological, including geophysical | 940,745 | 843,426 | 3,165,155 | 3,301,642 | |||||
Graphics | 7,494 | 3,575 | 26,565 | 24,305 | |||||
Helicopter and fuel | 669,907 | 13,446 | 4,468,985 | 1,487,096 | |||||
Property acquisition and assessments costs | 55,634 | 66,946 | 193,535 | 193,998 | |||||
Site activities | 1,444,979 | 176,183 | 4,116,479 | 2,077,330 | |||||
Socioeconomic | 148,464 | 103,795 | 415,514 | 225,217 | |||||
Technical data | 18,900 | 50,335 | 55,010 | 81,823 | |||||
Travel and accommodation | 124,533 | 48,623 | 395,148 | 261,409 | |||||
Administration | 347,406 | 343,252 | 848,205 | 794,633 | |||||
Legal, accounting and audit | 13(b) | 44,128 | 55,131 | 57,476 | 89,866 | ||||
Office and administration | 100,956 | 103,763 | 305,338 | 296,929 | |||||
Rent | 22,148 | 13,721 | 48,583 | 40,975 | |||||
Shareholder communication | 119,426 | 83,014 | 321,572 | 225,069 | |||||
Travel and accommodation | 59,532 | 66,166 | 85,100 | 90,623 | |||||
Trust and regulatory | 1,216 | 21,457 | 30,136 | 51,171 | |||||
Equity-settled share-based compensation | 70,633 | 26,758 | 211,899 | 80,273 | |||||
Cost recoveries | 7 | (3,306,382) | (2,713,983) | (17,596,923) | (9,992,051) | ||||
Other items | 2,354,687 | (631,949) | 4,180,631 | 65,016 | |||||
Finance income | 9 | (66,261) | (72,612) | (289,842) | (249,553) | ||||
Interest expense - director's loans | 25,205 | 25,205 | 74,342 | 75,342 | |||||
Accretion expense - office lease | 7 | 1,095 | 1,764 | 3,806 | 5,755 | ||||
Other fee income | (102,078) | - | (925,919) | (460,000) | |||||
Amortization of right-of-use asset | 9 | 5,044 | 5,044 | 15,132 | 15,132 | ||||
Transaction cost - director's loans | 28,775 | 35,573 | 113,458 | 99,143 | |||||
Foreign exchange loss | 2,328 | 1,583 | 2,867 | 2,132 | |||||
Net loss (income) | 2,248,795 | (635,392) | 3,174,475 | (447,033) | |||||
Other comprehensive loss (income) | 7,298 | (14,495) | 19,301 | 42,447 | |||||
Items that will not be reclassified subsequ ntly to loss: | |||||||||
Change in value of marketable securities | |||||||||
Total other comprehensive loss (income) | 2,256,093 | (649,887) | 3,193,776 | (404,586) | |||||
Basic and diluted loss (income) per share | 0.01 | (0.00) | 0.01 | (0.00) | |||||
Weighted average number of common | 216,217,497 | 195,126,807 | 213,920,665 | 189,462,894 | |||||
shares outstanding |
The accompanying notes are an integral part of these condensed interim financial statements.
4 | P a g e
Amarc Resources Ltd.
Condensed Interim Statements of Comprehensive (Loss)
(Unaudited - Expressed in Canadian Dollars)
Three months ended | Nine months ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Net income (loss) | $ (2,248,795) | $ 635,392 | $ (3,174,475) | $ 447,033 |
Items that will not be reclassified subsequently | ||||
Other comprehensive income (loss): | ||||
to profit and loss: | (7,298) | 14,495 | (19,301) | (42,447) |
Revaluation of marketable securities | ||||
Total other comprehensive income (loss) | ||||
(7,298) | 14,495 | (19,301) | (42,447) | |
Comprehensive income (loss) | $ (2,256,093) | $ 649,887 | $ (3,193,776) | $ 404,586 |
The accompanying notes are an integral part of these condensed interim financial statements.
5 | P a g e
Amarc Resources Ltd.
Condensed Interim Statements of Changes in (Deficiency) Equity
(Unaudited - Expressed in Canadian Dollars, except for share information)
Share capital | Reserves | |||||||
Share- | ||||||||
based | Investment | Share | ||||||
Number | payments | revaluation | warrants | |||||
of shares | Amount | reserve | reserve | reserve | Deficit | Total | ||
(#) | ($) | ($) | ($) | ($) | ($) | ($) | ||
Balance at April 1, 2023 | 186,602,894 | 65,228,921 | 2,650,490 | (1,495,692) | 3,135,098 | (69,984,262) | (465,445) | |
Net loss for the period | - | - | - | - | - | 447,033 | 447,033 | |
Other comprehensive loss for the period | - | - | - | (42,447) | - | - | (42,447) | |
Issuance of common shares pursuant to property | ||||||||
Total comprehensive loss | - | - | - | (42,447) | - | 447,033 | 404,586 | |
agreement | 100,000 | 7,500 | - | - | - | - | 7,500 | |
Issuance of common shares pursuant to property | 9,615,385 | 769,231 | - | - | - | - | 769,231 | |
agreement | ||||||||
Issuance of common shares pursuant to a non- | 15,384,615 | 2,000,000 | - | - | - | - | 2,000,000 | |
flow-through private placement | ||||||||
Issuance of common shares pursuant to a flow- | - | (769,231) | - | - | - | - | (769,231) | |
through private placement | ||||||||
Flow-through share premium liability | - | - | 80,273 | - | - | - | 80,273 | |
Balance at December 31, 2023 | 211,702,894 | 67,236,421 | 2,730,763 | (1,538,139) | 3,135,098 | (69,537,229) | 2,026,914 | |
Balance at April 1, 2024 | 211,702,894 | 67,236,421 | 3,075,950 | (1,593,390) | 3,135,098 | (70,027,712) | 1,826,367 | |
Net loss for the period | - | - | - | - | - | (3,174,475) | (3,174,475) | |
Other comprehensive loss for the period | - | - | - | (19,301) | - | - | (19,301) | |
Total comprehensive loss | - | - | - | (19,301) | - | (3,174,475) | (3,193,776) | |
Issuance of common shares pursuant to property | 100,000 | 7,500 | - | - | - | - | 7,500 | |
agreement | ||||||||
Shares issued through exercise of options | 2,820,000 | 190,900 | - | - | - | - | 190,900 | |
Shares issued through exercise of warrants | 6,176,470 | 350,000 | - | - | - | - | 350,000 | |
Equity-settled share-based compensation | - | - | 211,899 | - | - | - | 211,899 | |
Balance at December 31, 2024 | 220,799,364 | 67,784,821 | 3,287,849 | (1,612,691) | 3,135,098 | (73,202,187) | (607,110) | |
The accompanying notes are an integral part of these condensed interim financial statements.
6 | P a g e
Amarc Resources Ltd.
Condensed Interim Statements of Cash Flows
(Unaudited - Expressed in Canadian Dollars)
Nine months ended December 31,
Note | 2024 | 2023 | |
Operating ac iviti s | ($) | ($) | |
Net (loss) for the period | (3,174,475) | 447,033 | |
Adjustments for: | 14 | 15,132 | 15,132 |
Amortization of right-of-use asset | |||
Equity-settled share-based compensation | 14 | 211,899 | 80,273 |
Office lease accretion per IFRS 16 | 3,806 | 5,755 | |
Office base rent recorded as lease reduction per IFRS 16 | 14 | (21,123) | (21,014) |
Property acquisition and assessments costs | 9 | 7,500 | 7,500 |
Transaction cost - director's loans | 113,458 | 99,143 | |
Changes in working capital items | (134,475) | 111,745 | |
Amounts receivable and other assets | |||
Restricted cash | 20,000 | - | |
Accounts payable and accrued liabilities | 7(b, c) | (743,463) | (603,473) |
Advanced contributions received | (4,303,661) | (2,557,383) | |
Balances due to related parties | (93,103) | (398,366) | |
Net cash used in operating activities | (8,098,505) | (2,813,655) | |
Financing activities | |||
Net proceeds from issuance of common shares pursuant to | 11(a) | - | 2,769,231 |
a private placement | |||
Proceeds from exercise of share purchase warrants | 11 | 350,000 | - |
Proceeds from option exercise | 11 | 190,900 | - |
Net cash provided by financing activities | 540,900 | 2,769,231 | |
Cash, beginning balance | (7,557,605) | (44,424) | |
Net decrease in cash | 9,007,042 | 5,131,510 | |
Cash, ending balance | |||
1,449,437 | 5,087,086 | ||
The accompanying notes are an integral part of these condensed interim financial statements.
7 | P a g e
AMARC RESOURCES LTD.
NFortesthetoninethemonthsC densedendedInterimDecemberFinancial31, 2024Statementsand 2023. (Unaudited - Expressed in Canadian Dollars, unless otherwise stated)
1. NATURE AND CONTINU("Amarc"NCE OF OPERATIONS
Amarc Resources Ltd. or the "Company") Province of British Columbia ("BC"). Its principal business mineral properties. The Company's mineral property interests Company's corporate office is 14th Floor, 1040 West Georgia Street,
The Company is in the process of exploring its mineral property interests whether its mineral property interests contain economically recoverable Company's continuing operations are entirely dependent upon the existence of economically mineral reserves, the ability of the Company to obtain the necessary financing to continue the
and development of its mineral property interests and to obtain the permits necessary to mine, future profitable production from its mineral property interest or proceeds from the disposition mineral property interests.
These Condensed Interim financial statements as at and for the nine months ended December 31, (the "Financial Statements") have been prepared on a going concern basis, which contemplates realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As at December 31, 2024 , the Company had cash of $1,449,437, working capital deficiency of $241,184, and an accumulated deficit of $73,202,187.
The Company will need to seek additional financing to meet its exploration and development objectives. The Company has a reasonable expectation that additional funds will be available when necessary to meet ongoing exploration and development costs. However, there can be no assurance that the Company will continue to be able to obtain additional financial resources or will achieve profitability or positive cash flows. If the Company is unable to obtain adequate additional financing, the Company will be required to re-evaluate its planned expenditures until additional funding can be raised through financing activities. These factors indicate the existence of a material uncertainty that casts significant doubt about the Company's ability to continue as a going concern.
These Financial Statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that may be necessary should the Company be
unable to continue as a going concern.is a company incorporated under the laws of theactivity is the acquisition and exploration ofare located in BC. The address of theVancouver, BC, Canada V6E 4H1.and has not yet determinedmineral reserves. Therecoverableexplorationand theof its2024the
2. MATERIAL ACCOUNTING POLICY INFORMATION
The principal accounting policies applied in the preparation of these Financial Statements are described below. These policies have been consistently applied for all years presented, unless otherwise stated.
(a) Statement of compliance
These Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") and the International Financial Reporting Interpretations Committee ("IFRIC") effective for the Company's reporting year ended March 31, 2024. These Financial Statements do not include all of the information and footnotes required by International Financial Reporting Standards ("IFRS") for complete financial statements for year-end reporting purposes. These Financial Statements should be read in conjunction with the Company's consolidated financial statements as at and for the year ended March 31, 2024.
8 | P a g e
AMARC RESOURCES LTD.
NFortesthetoninethemonthsC densedendedInterimDecemberFinancial31, 2024Statementsand 2023.
(UnaResultsditedfor-theExpressedreportingperiodCana ianendedDollars,Decemberunl ss31,otherwise2024 arestated)not necessarily indicative of future results. The accounting policies and methods of computation applied by the Company in these Financial Statements are the same as those applied by the Company in its more recent annual financial statements, which are filed under the Company's profile on SEDAR at www.sedarplus.com
The Board of Directors of the Company authorized these Financial Statements for issuance on February 26, 2025.
(b) Basis of presentation
These Financial Statements have been prepared on a historical cost basis, except for certain financial instruments classified as fair value through other comprehensive income, which are reported at fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information.
Certain comparative amounts have been reclassified to conform to the presentation adopted in the current period.
(c) Significant accounting estim tes and judgements | |
The preparation of the Financial Statements in conformity with IFRS requires management to make | |
judgements, estimates, and assumptions that affect the application of policies and reported amounts of | |
assets and liabilities, income and expenses. Actual results may differ from these estimates. | |
The impacts of such estimates are pervasive throughout the 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 future periods if the revision affects both current and | |
future periods. These estimates are based on historical experience, current and future economic | |
conditions and other factors, including expectations of future events that are believed to be reasonable | |
under the circumstances. Specific areas where significant estimates or judgments exist are: | |
• | assessment of the Company's ability to continue as a going concern; |
• | the determination of categories of financial assets and financial liabilities; and |
• |
the carrying value and recoverability of the Company's marketable securities.
(d) Operating segmeandts
The functional presentational currency of the Company is the Canadian Dollar ("CAD"). Transactions in currencies other than the functional currency of the Company are recorded at the rates of exchange prevailing on the dates of transactions. At each financial position reporting date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates of exchange prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. Gains and losses arising on translation are included in profit or loss for the year.
9 | P a g e
AMARC RESOURCES LTD.
NFortesthetoninethemonthsC densedendedInterimDecemberFinancial31, 2024Statementsand 2023. (Unaudited - Expressed in Canadian Dollars, unless otherwise stated)
- CASH
The Company's cash is invested in business accounts, which are available on demand by the Company. - MARKETABLE SECURITIES
As at December 31, 2024, the fair value of its current holdings was $22,286 (March 31, 2024 - $41,587) and during the nine months ended December 31, 2024 there was a negative change of fair value adjustment of $19,301 (December 31, 2023 - $42,447 negative change). The marketable securities include 550,000 units (shares and warrants) of Carlyle Commodities Corp., a Canadian public company listed on the TSX Venture Exchange.
As at December 31, 2024, the Company held the following marketable securities:
Shares/Warrants | Fair Value | |||
Company | Held | Cost | Fair Value | Decrease |
(#) | ($) | ($) | ($) | |
Carlyle Commodities Corp - Shares | 550,000 | 907,500 | 8,250 | (899,250) |
Carlyle Commodities Corp - Warrants | 550,000 | 727,000 | 200 | (726,800) |
Other | 1,680,729 | 14,237 | 13,836 | (401) |
Total | 2,780,729 | 1,648,737 | 22,286 | (1,626,451) |
5. Restricted cash represents amounts held in support of exploration permits. The amounts are refundable subject to the consent of regulatory authorities upon completion of any required reclamation work on the related projects.
ESTRICTED CASH
6. AMOUNTS RECEIVABLE AND OTHER ASSETS
December 31, 2024 | March 31, 2024 | |
($) | ($) | |
Sales tax refundable | 244,726 | 158,223 |
Prepaid | 105,873 | 57,901 |
350,599 | 216,124 | |
7. EXPLORATION AND EVALUATION EXPENSES AND COST RECOVERIES
Below is a summary of the Company's major exploration property interests, together with the material property transactions.
(a) IKETheDistrictIKE Property mineral claims (a subset of the IKE District mineral tenure) carry a net smelter return ("NSR") royalty obligation of 1%, subject to a $2 million cap and which the Company is able to purchase at any time by payment of the same amount. These claims carry an additional NSR royalty of 2%, subject to the Company retaining the right to purchase up to the entire royalty amount by the payment of up to $4 million. The Company has also agreed to make annual advance royalty payments of $50,000 to the holders of the 2% NSR royalty interest and, upon completion of a positive feasibility study, to issue to
10 | P a g e