UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended March 31, 2022 and 2021

(in thousands of Canadian dollars)
TABLE OF CONTENTS

Interim Consolidated Statements of Financial Position 2

Interim Consolidated Statements of Earnings (Loss) and Comprehensive Earnings (Loss) 3
Interim Consolidated Statements of Cash Flows 4
Interim Consolidated Statements of Changes in Equity 5
Notes to Financial Statements 6

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QUARTERLY REPORT 2022
 Interim Consolidated Statements of Financial Position
(Expressed in thousands of Canadian dollars)

As at March 31, 2022 December 31, 2021

Note $ $
ASSETS
Current assets
Cash and cash equivalents 78,100 91,005
Trade and other receivables 4 7,267 5,673
Inventories 5 36,505 32,878
Prepaid expenses 1,826 2,321
Marketable securities 6 2,903 3,549
126,601 135,426
Non-current assets
Property, plant and equipment and mineral property interests 7 315,074 300,680
Deferred tax asset 204 207
Other non-current assets 20 20
Total assets 441,899 436,333

LIABILITIES AND EQUITY

Current liabilities
Accounts payable and accrued liabilities 8 51,781 53,913
Current tax liability 282 254
Share incentive plan liabilities 14 10,716 7,522
Debt 9 3,040 3,010
Lease obligations 10 3,790 3,399
Derivative financial liabilities 11 3,186 2,881
72,795 70,979
Non-current liabilities
Debt 9 29,704 29,647
Lease obligations 10 5,390 5,580
Derivative financial liabilities 11 22,842 22,391
Asset retirement obligations 12 29,441 31,136
Deferred tax liability 27,124 25,135
Other non-current liabilities and provisions 186 100
Total liabilities 187,482 184,968
SHAREHOLDERS' EQUITY
Share capital 13 314,735 310,143
Contributed surplus 32,198 31,523
Accumulated other comprehensive income 3,503 2,009
Deficit (96,019) (92,310)
Total shareholders' equity 254,417 251,365
Total liabilities and shareholders' equity 441,899 436,333

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

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QUARTERLY REPORT 2022
 Interim Consolidated Statements of Earnings (Loss) and Comprehensive
Earnings (Loss)
(Expressed in thousands of Canadian dollars, except per share amounts)

For the three months ended March 31, 2022 2021

Note $ $
Revenue 65,272 59,284
Cost of operations:
Production and processing costs 42,436 29,301
Royalty expense 3,634 3,755
General and administrative: share-based compensation 5,964 1,290
General and administrative: other 6,803 4,870
Depreciation and amortization 8,754 7,283
Operating earnings (loss) (2,319) 12,785
Other expenses (income)
Finance expense, net 15 1,045 1,081
Loss (gain) on derivatives 1,115 (2,860)
Foreign exchange loss (gain) (2,951) 4,573
Unrealized loss (gain) on revaluation of marketable securities 646 (360)
Other expense (income), net (21) 15

Earnings (loss) before income tax (2,153) 10,336

Income tax expense - current (33) (21)
Income tax expense - deferred (1,523) (4,691)
Net earnings (loss) (3,709) 5,624
Currency translation adjustments 1,494 (1,389)
Comprehensive earnings (loss) (2,215) 4,235

Net earnings (loss) attributable to common shareholders per share

Basic (0.02) 0.04
Diluted (0.02) 0.04

Weighted average number of shares

Basic 16 154,440,916 146,254,253
Diluted 16 154,440,916 151,018,838

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

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QUARTERLY REPORT 2022
 Interim Consolidated Statements of Cash Flows
(Expressed in thousands of Canadian dollars)

2022 2021
$ $
Cash flow provided by (used in)
OPERATING ACTIVITIES
Net earnings (loss) for the period (3,709) 5,624
Changes not affecting cash:
Depreciation and amortization 8,817 7,322
Income tax expense 1,556 4,712
Share incentive plans 5,768 1,142
Foreign exchange loss (gain) (3,037) 4,391
Net change in fair value of derivative instruments 1,115 (2,860)
Finance charges, net 1,045 1,027
Unrealized loss (gain) on revaluation of marketable securities 646 (360)
12,201 20,998
Changes in non-cash working capital
Trade and other receivables (1,476) (666)
Inventories (1,542) (716)
Prepaid expenses 517 46
Accounts payable and accrued liabilities 2,797 (1,004)
12,497 18,658
Asset retirement obligations (347) -
Net cash provided by operating activities 12,150 18,658

INVESTING ACTIVITIES
Property, plant and equipment and mineral property interests (24,784) (18,193)
Investment in marketable securities - (119)
Interest received 45 36
Net cash used in investing activities (24,739) (18,276)

FINANCING ACTIVITIES
Share repurchase and cancellation - (613)
Proceeds from exercise of options and warrants 1,428 417
Payments on leases (1,070) (492)
Settlements in respect of derivative instruments (695) (663)
Interest paid (680) (740)
Net cash used in financing activities (1,017) (2,091)
Effect of exchange rate changes on cash and cash equivalents 701 (1,239)

Net decrease in cash and cash equivalents (12,905) (2,948)

Cash and cash equivalents, beginning of period 91,005 79,695
Cash and cash equivalents, end of period 78,100 76,747

Components of cash and cash equivalents:

Cash 72,883 76,627
Cash equivalents 5,217 120
78,100 76,747

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

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QUARTERLY REPORT 2022
 Interim Consolidated Statements of Changes in Equity
(Expressed in thousands of Canadian dollars, except share numbers)

Accumulated
other
Contributed comprehensive
Share capital (note 13) surplus income Deficit Total equity
Note Number $ $ $ $ $

Balance as at December 31, 2021 154,076,242 310,143 31,523 2,009 (92,310) 251,365
Exercise of restricted share units 138,679 857 - - - 857
Exercise of stock options 711,146 2,385 (957) - - 1,428
Share-based payments - - 1,632 - - 1,632
Shares issued to settle an obligation 13 297,718 1,350 - - - 1,350
Comprehensive earnings (loss) - - - 1,494 (3,709) (2,215)
Balance as at March 31, 2022 155,223,785 314,735 32,198 3,503 (96,019) 254,417

Accumulated
other
Contributed comprehensive
Share capital surplus income Deficit Total equity
Note Number $ $ $ $ $
Balance as at December 31, 2020 146,129,181 289,483 31,413 5,789 (119,481) 207,204
Exercise of restricted share units 100,867 330 - - - 330
Exercise of warrants 85,558 297 (114) - - 183
Exercise of stock options 169,347 375 (141) - - 234
Share-based payments - - 1,253 - - 1,253
Share repurchase and cancellation (198,000) (393) - - (220) (613)
Comprehensive earnings (loss) - - - (1,389) 5,624 4,235
Balance as at March 31, 2021 146,286,953 290,092 32,411 4,400 (114,077) 212,826

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

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

Notes to Financial Statements

1. NATURE OF OPERATIONS

Karora Resources Inc. (“Karora” or “Karora Resources”) is a company domiciled in Canada and was
incorporated on December 13, 2006, under the Canada Business Corporations Act. The Corporation’s shares
are publicly traded on the Toronto Stock Exchange (TSX: KRR) (OTCQX: KRRGF). The Corporation's
registered office is located at 141 Adelaide Street West, Suite 1608 in Toronto, Ontario, Canada.

These unaudited condensed interim consolidated financial statements of the Corporation as at and for the
three months ended March 31, 2022 are comprised of Karora, its subsidiaries including its Australian
operating subsidiaries, Salt Lake Mining Pty Ltd. (“SLM”) and the group of subsidiaries collectively referred
to as Higginsville Gold Operation (“HGO”). Collectively, these entities are referred to as the “Corporation”.

Karora is a multi-asset mineral resource company. The Corporation’s main assets are: 1) its 100% interest
in the Beta Hunt Mine (“Beta Hunt”) which is owned by SLM; 2) its 100% interest in the HGO toll processing
and gold mining operation; and 3) its 100% interest in the Spargos Reward Gold Project (“Spargos”) which
is owned by HGO and included as a part of that business segment, all of which are located in Western
Australia.

In response to the global COVID-19 pandemic, in conjunction with federal and state protocols in the countries
where the Corporation operates, the Corporation established policies and practices which mitigated impacts
of the pandemic on its operations. All of the Corporation’s mines continued production throughout the three
months ended March 31, 2022. The Corporation’s ongoing response to the COVID-19 pandemic is to
continue to prioritize the safety of its workforce and host communities while mitigating operational impacts.

2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION

(a) Statement of Compliance

These unaudited condensed interim consolidated financial statements have been prepared in accordance
with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting
Standards Board applicable to the preparation of interim financial statements, including IAS 34, Interim
Financial Reporting. These unaudited condensed interim consolidated financial statements should be read
in conjunction with the Corporation’s consolidated financial statements for the year ended December 31,
2021.

The Corporation’s presentation currency is Canadian dollars ($).

The unaudited condensed interim consolidated financial statements were authorized for publication by the
Board of Directors on May 11, 2022.

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

(b) Basis of preparation

The accounting policies followed in these unaudited condensed interim consolidated financial statements are
consistent with those applied and disclosed in the Corporation’s audited annual consolidated financial
statements for the year ended December 31, 2021.

3. ACCOUNTING POLICY JUDGMENTS, ESTIMATES AND ASSUMPTIONS

Many of the amounts included in the unaudited condensed interim consolidated financial statements require
management to make accounting policy judgments and/or estimates. These judgments and estimates are
continuously evaluated and are based on management’s experience and knowledge of the relevant facts and
circumstances. Actual results may differ from the amounts included in the consolidated financial statements.

Areas of significant accounting policy judgment and estimates affecting the amounts recognized in the interim
consolidated financial statements for the three months ended March 31, 2022 are consistent with those
applied and disclosed in note 3 to the Corporation’s audited consolidated financial statements for the year
ended December 31, 2021.

4. TRADE AND OTHER RECEIVABLES

Trade and other receivables consist of the following:

As at March 31, 2022 December 31, 2021

Trade accounts receivable $4,033 $2,185
Sales taxes and rebates 3,234 3,488
$7,267 $5,673

5. INVENTORIES

Inventories consist of the following:

As at March 31, 2022 December 31, 2021

Gold ore 23,375 $24,066
Gold in process 7,471 4,626
Nickel ore - 285
Stores, spares and fuel 5,659 3,901
$36,505 $32,878

As at March 31, 2022, $7.2 million (December 31, 2021 – $5.6 million) of depreciation was included in
inventory.

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

6. MARKETABLE SECURITIES

The following table reflects the continuity of the Corporation’s marketable securities:

For the three months ended March 31, 2022

Opening balance $3,549
Unrealized loss on revaluation of marketable securities (646)
Closing balance $2,903

The Corporation’s marketable securities are traded in an active market on stock exchanges and are therefore
considered Level 1 assets under the Corporation’s fair value hierarchy. The marketable securities are
recorded at fair values which are derived using quoted market prices.

7. PROPERTY, PLANT AND EQUIPMENT AND MINERAL PROPERTY INTERESTS

The following tables reflect the continuity of the Corporation’s property, plant and equipment and mineral
property interests.
Mineral Exploration
Plant and Property and
Equipment Interests Evaluation Total
As at December 31, 2021 $81,796 $172,269 $46,615 $300,680
Additions 8,409 10,732 2,118 21,259
Adjustment in respect of rehabilitation obligations (note 12)
- (1,967) - (1,967)
Change due to foreign exchange translation 1,497 2,989 849 5,335
Depreciation (2,358) (7,875) - (10,233)
As at March 31, 2022 $89,344 $176,148 $49,582 $315,074

As at March 31, 2022

Cost $111,388 $244,741 $49,582 $405,711
Accumulated depreciation (22,044) (68,593) - (90,637)
Net book value $89,344 $176,148 $49,582 $315,074

As at December 31, 2021

Cost $101,240 $231,797 $46,615 $379,652
Accumulated depreciation (19,444) (59,528) - (78,972)
Net book value $81,796 $172,269 $46,615 $300,680

The tables below summarize the balances in respect of right-of-use assets which are included in the tables
above:

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

Plant and
Equipment
As at December 31, 2021 $11,223
Additions 973
Change due to foreign exchange translation 198
As at March 31, 2022 $11,807

8. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of the following:

As at March 31, 2022 December 31, 2021

Trade accounts payable $18,967 $18,683
Royalty accrual 5,232 4,915
Spargos accrual - 1,382
Employee related accruals 10,844 9,798
Accrued liabilities 16,738 19,135
$51,781 $53,913

Accounts payable and accrued liabilities includes $1.7 million (December 31, 2021 - $7.6 million) in respect
of property, plant and equipment and mineral property interests.

9. DEBT

Long-term debts consist of the following:

For the three months ended March 31, 2022 Morgan Stanley
Bridge Installments Total
(i) (ii)
As at December 31, 2021 $29,647 $3,010 $32,657
Accretion expense 57 79 136
Change due to foreign exchange translation - (49) (49)
As at March 31, 2022 29,704 3,040 32,744
Less current portion - 3,040 3,040
Non-current portion $29,704 $- $29,704

(i) Bridge
The Corporation has an outstanding bridge facility in the amount of $30 million (“Bridge”). The Bridge was
initiated in June 2019. The Corporation has, at its option, the right to extend the term by additional periods
of six months which would result in a maturity date during June 2023 and consequently the loan is classified
as non-current on the statement of financial position. The facility does not require repayment of principal until
the maturity date and bears interest at a rate of 9% per annum paid monthly. Total issue costs of $1.9 million
are included in the amortized cost of the loan and expensed on an effective interest rate basis over the term
of the Bridge.

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

(ii) Morgan Stanley Installments

As part of a royalty buyback arrangement with Morgan Stanley, the Corporation agreed to pay USD$6.3
million comprising 5 installments of US$1.26 million each starting on November 18, 2020 and payable each
six months thereafter until fully paid. The Corporation calculated the net present value of these payments
using a 10% discount rate.

10. LEASE OBLIGATIONS

The following table reflects the continuity of lease obligations for the three months ended March 31, 2022:

For the three months ended March 31, 2022

Opening balance $8,979
Additions 973
Accretion 149
Cash payments (1,070)
Change due to foreign exchange translation 149
Closing balance 9,180
Less current portion 3,790
Non-current portion $5,390

During the three months ended March 31, 2021, $20.3 million (2021 - $11.8 million) was expended in respect
of short-term leases not included above.

11. DERIVATIVE FINANCIAL INSTRUMENTS

The fair value of derivative instruments not traded in an active market is determined using valuation
techniques. These valuation techniques maximize the use of observable market data where it is available. If
all significant inputs required to measure the fair value of an instrument are observable, the instrument is
included as a Level 2 measurement. As the discount rate is not an observable input, the Morgan Stanley
participation royalty derivative liability is classified within Level 3 of the fair value hierarchy.

The participation royalty obligation was estimated using a forward contract valuation approach model. The
key inputs used in the valuation include:

• the gold forward price curve based on the COMEX futures curve, extrapolated where necessary;
• USD/AUD foreign exchange rates based on forward curves;
• discount rates incorporating the Corporation’s estimated credit spread of 4.3% as at March 31,
2022;
• a current risk-free rate based on the Australian dollar swaps curve; and
• the Corporation’s estimated gold ounce delivery into the participation royalty.

The following tables summarize the quantitative information about significant unobservable inputs used in
Level 3 fair value measurements:

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

Unobservable Range of
As at March 31, 2022 Fair value Inputs Inputs Relationship of unobservable inputs on fair value

An increase or decrease in the discount rate of 1% would decrease or

Morgan Stanly Participation Royalty 26,028 Discount rate 3% - 5%
increase fair value by $1.1million or $1.2 million, respectively.

Morgan Stanly Participation Royalty 26,028 Gold price An increase or decrease in the gold price of 10% would decrease or increase
fair value by $5.2 million or $5.2 million, respectively.

The table below summarizes the movements in the derivative liability for the three months ended March 31,
2022:

For the three monhts ended March 31, 2022 Morgan Stanley
Participation
Royalty
As at December 31, 2021 $25,272
Settlements (803)
Net change in fair value 1,115
Change due to foreign exchange translation 444
As at March 31, 2022 26,028
Less current portion 3,186
Non-current portion $22,842

12. RESTORATION, REHABILITATION AND ENVIRONMENTAL OBLIGATIONS

The asset rehabilitation and environmental obligations represent the legal and contractual obligations
associated with the eventual closure and reclamation of the Corporation’s mine and mill operations. The
obligations consist of costs associated with reclamation, environmental monitoring and the removal of
tangible assets. As at March 31, 2022, the discount rate used was 2.8% (December 31, 2021 – 1.6%) and
the inflation rate was 2.6% (December 31, 2021 – 2.5%).

The following table reflects the continuity of asset, rehabilitation and environmental obligations for the three
months ended March 31, 2022:

For the three months ended March 31, 2022

Opening balance $31,136
Accretion expense 125
Payments (347)
Change in discount and inflation rates (1,967)
Change due to foreign exchange translation 494
Closing balance $29,441

13. SHARE CAPITAL

The Corporation is authorized to issue an unlimited amount of common shares.

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

During the three months ended March 31, 2022, the Corporation issued 297,718 shares with a value of
AUD$1.5 million ($1.4 million) in respect of the Spargos acquisition. The obligaton for the payment was
recognized as part of the Spargos acquisition in 2020 with the shares issuable upon the commencement of
gold production (note 8).

14. SHARE INCENTIVE PLANS

Share Purchase Options

The following table reflects the continuity of share purchase options for the three months ended March 31,
2022:
Number of Weighted Average
options Exercise Price
As at December 31, 2021 2,507,402 1.89
Exercised (711,146) 2.01
As at March 31, 2022 1,796,256 $1.85

For options exercised during the three months ended March 31, 2022, the related weighted average share
price at the time of exercise was $5.89 per share. There were no options granted during the three months
ended March 31, 2022.

As at March 31, 2022, the Corporation had the following share purchase options outstanding:

Options Outstanding Options Exercisable

Weighted Weighted
Weighted Weighted
Exercise Price Number of Average Number of Average
Average Exercise Average Exercise
Range Options Remaining Options Remaining
Price Price
Contractual Life Contractual Life
$0.40-$0.75 126,666 1.3 $0.44 126,666 1.3 $0.44
$0.76-$1.20 509,441 0.9 $1.06 509,441 0.9 $1.06
$1.21-$1.76 382,960 2.7 $1.58 207,408 2.7 $1.55
$1.77-$2.75 385,412 1.7 $2.36 348,386 1.7 $2.39
$2.76-$3.95 391,777 2.1 $3.10 341,777 1.9 $2.97
1,796,256 1.7 $1.85 1,533,678 1.6 $1.80

During the three months ended March 31, 2022, the Corporation recorded share-based payments expense
related to share options of $0.1 million (2021 - $0.2 million).

Restricted Share Units

The following table reflects the continuity of restricted share units for three months ended March 31, 2022:

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

Number of
Restricted Share Units
As at December 31, 2021 3,228,776
Granted 11,762
Settled for shares (138,679)
Settled for cash (33,350)
Forfeited (21,610)
As at March 31, 2022 3,046,899

As at March 31, 2022, the weighted average remaining contractual life of the outstanding restricted share
units was 1.4 years and 789,969 restricted share units were vested with a remaining contractual life of 0.8
years.

Included in the 3,046,899 restricted share units outstanding as at March 31, 2022, are 1,255,743 units that
can be settled for cash or equity at the option of the holder. With respect to these restricted share units, the
Corporation has a liability of $8.0 million (December 31, 2021 - $5.7 million) to recognize the estimated fair
value as at March 31, 2022 of the restricted share units in share incentive plan obligations on the statement
of financial position.

With respect to the restricted share units which can only be settled for shares, during the three months ended
March 31, 2022, the Corporation recorded share-based payments expense of $0.7 million (2021 - $0.6
million).

Performance Share Units

The following table reflects the continuity of performance share units for three months ended March 31, 2022:

Number of
Performance Share Units
As at December 31, 2021 1,492,117
Forfeited (22,353)
As at March 31, 2022 1,469,764

As at March 31, 2022, the weighted average remaining contractual life of the outstanding share appreciation
rights is 2.0 years and no awards were vested.

With respect to the performance share units which can only be settled for shares, during the three months
ended March 31, 2022, the Corporation recorded share-based payments expense of $0.8 million (2021 -
$0.5).

Deferred Share Units

The following table reflects the continuity of deferred share units for three months ended March 31, 2022:

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

Number of
Deferred Share Units
As at December 31, 2021 419,625
Granted 29,862
As at March 31, 2022 449,487

As at March 31, 2022, all 449,487 deferred share units were vested.

The Corporation has a liability of $2.7 million (December 31, 2021 - $1.8 million) to recognize the estimated
fair value as at March 31, 2022 in share incentive plan obligations in the Consolidated Statement of Financial
Position.

With respect to the deferred share units which can only be settled for shares, during the three months ended
March 31, 2022, the Corporation recorded share-based payments expense of $0.1 million (2021 - $nil).

Summary
The total expense recognized from share-based compensation transactions is shown in the following table:

For the three months ended March 31, 2022 2021

Share purchase options $71 $167
Deferred share units 1,071 24
Restricted share units 3,984 575
Share appreciation rights 85 (18)
Performance share units 753 542
$5,964 $1,290

15. FINANCE EXPENSE, NET

For the three months ended March 31, 2022 2021

Interest expense $680 $740
Accretion 410 377
Interest income (45) (36)
$1,045 $1,081

16. NET EARNINGS PER SHARE

Basic net earnings per share has been calculated using the weighted average number of common shares
and common share equivalents issued and outstanding during the period. Share purchase options are
reflected in diluted earnings per share by application of the treasury stock method. The following table details
the weighted average number of outstanding common shares for the purpose of computing basic and diluted
earnings per common share for the following periods:

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

For the three months ended March 31, 2022 2021

Weighted average common shares - basic 154,440,916 146,254,253
Adjustments for dilutive instruments:
Share purchase options - 2,110,296
Restricted share units - 1,912,093
Performance share units - -
Deferred share units - 290,219
Warrants - 451,977
Weighted average common shares - diluted 154,440,916 151,018,838

17. FINANCIAL RISK FACTORS

The Corporation applies a hierarchy to classify valuation methods used to measure financial instruments
carried at fair value. Levels 1 to 3 are defined based on the degree to which fair value inputs are observable
and have a significant effect on the recorded fair value, as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Valuation techniques use significant observable inputs, directly or indirectly, or valuations are
based on quoted prices for similar instruments; and
Level 3: Valuation techniques use significant inputs that are not based on observable market data
(unobservable inputs).

The carrying values of cash and cash equivalents, amounts receivable and accounts payable and accrued
liabilities approximate their fair values due to their relatively short periods to maturity. With respect to long-
term debt balances (note 9), carrying values and fair values are as follows:

As at March 31, 2022 December 31, 2021

Carrying Value Fair Value Carrying Value Fair Value
Bridge loan (level 2) $29,704 $30,000 $29,647 $30,000
Morgan Stanley Installments (level 3) $3,040 $3,153 $3,010 $3,195

18. SEGMENTED INFORMATION

Each individual operating mine or asset group is considered to be a reportable operating segment for financial
reporting purposes. Results of operating segments are reviewed by the Corporation’s chief operating decision
maker to make decisions about resources to be allocated to the segments and to assess their performance.

The Corporation has production and exploration and evaluation activities from its two operating segments in
Australia. The following is a summary of the reported amounts by segment:

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QUARTERLY REPORT 2022
 Notes to the Unaudited Condensed Interim Consolidated Financial Statements
For the three months ended March 31, 2022 and 2021
(Expressed in thousands of Canadian dollars, unless otherwise indicated)

For the three months ended March 31, 2022

Beta Hunt HGO
Gold/Nickel Gold Intersegment
Mine Mine/Mill Elimination
Australia Australia (1) All Other Total
Revenues $40,996 $29,949 $(5,673) $- $65,272

Production and processing costs 22,739 25,370 (5,673) - 42,436

Royalty expense 2,899 735 - - 3,634
General and administrative: share-based payments 841 842 - 4,281 5,964
General and administrative: other 1,638 1,646 - 3,519 6,803
Depreciation and amortization 3,351 5,403 - - 8,754
Operating earnings (loss) $9,528 ($4,047) - ($7,800) ($2,319)
1) Eliminates the revenues of HGO in respect of toll processing services provided to Beta Hunt Gold Mine.

As at March 31, 2022

Property, plant and equipment and mineral property interests $127,725 $187,156 $- $193 $315,074
Total assets 150,731 253,049 - 38,119 441,899

As at December 31, 2021

Property, plant and equipment and mineral property interests $118,271 $182,151 $- $258 $300,680
Total assets 130,758 262,953 - 42,622 436,333

For the three months ended March 31, 2021

Beta Hunt HGO
Gold/Nickel Gold Intersegment
Mine Mine/Mill Elimination
Australia Australia (1) All Other Total
Revenues $44,067 $21,993 $(6,776) $- $59,284

Production and processing costs 20,470 15,607 (6,776) - 29,301

Royalty expense 3,104 651 - - 3,755
General and administrative: share-based payments 225 225 - 840 1,290
General and administrative: other 801 798 - 3,271 4,870
Depreciation and amortization 4,037 3,246 - - 7,283
Operating earnings (loss) $15,430 $1,466 - ($4,111) $12,785
1) Eliminates the revenues of HGO in respect of toll processing services provided to Beta Hunt Gold Mine.

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QUARTERLY REPORT 2022