ASANTE GOLD CORPORATION

Condensed Interim Consolidated Financial Statements

For the three and six months ended July 31, 2023 and 2022

(Unaudited - Expressed in thousands of Canadian dollars)

Notice of Disclosure of Non-auditor Review of the Condensed Interim Consolidated Financial Statements for the Three and Six Months Ended July 31, 2023 and 2022

Pursuant to National Instrument 51-102Continuous Disclosure Obligations, part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the interim financial statements have not been reviewed by an auditor.

The accompanying unaudited condensed interim consolidated financial statements of Asante Gold Corporation for the interim periods ended July 31, 2023 and 2022, have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as issued by the International Accounting Standards Board, and are the responsibility of management.

The independent auditors, Ernst & Young LLP, have not performed a review of these unaudited condensed interim consolidated financial statements.

September 14, 2023

Asante Gold Corporation

Condensed Interim Consolidated Statements of Financial Position (Unaudited - Expressed in thousands of Canadian dollars)

July 31,

January 31,

Note

2023

2023

ASSETS

$

$

Current

11,785

2,811

Cash

Restricted cash

15(b)

30,837

31,845

Accounts receivable

6

11,756

14,022

Current portion of prepaid expenses

7

18,641

12,017

Marketable securities

8

4,734

6,213

Inventories

9

82,840

83,532

160,593

150,440

Prepaid expenses

7

7,078

5,529

Reclamation bonds

10

10,843

10,986

Property, plant and equipment

11

386,847

400,924

Mineral properties

12

370,522

397,335

Loans receivable

358

362

Exploration and evaluation assets

13

26,281

12,056

Total assets

962,522

977,632

LIABILITIES

Current

420,473

324,069

Trade and other payables

14

Due to related parties

22

4,508

3,203

Current portion of loans payable

15

39,328

46,991

Current portion of deferred payments

16

126,752

129,136

Current portion of rehabilitation provision

17

332

340

Deferred revenue

18

34,134

66,750

Other current liabilities

5, 19

139,668

141,438

765,195

711,927

Loans payable

15

15,388

-

Deferred payments

16

48,153

47,847

Rehabilitation provision

17

85,840

85,247

Total liabilities

914,576

845,021

SHAREHOLDER'S EQUITY

296,395

245,120

Share capital

20(b)

Reserve for share-based payments

20(c)(e)

28,546

27,948

Reserve for warrants

20(d)

7,237

359

Accumulated other comprehensive income

15,736

17,624

Accumulated deficit

(324,269)

(193,727)

Equity attributable to shareholders of the Company

23,645

97,324

Non-controlling interest

21

24,301

35,287

Total shareholders' equity

47,946

132,611

Total liabilities and shareholders' equity

962,522

977,632

Nature of operations and going concern (Note 1)

Subsequent event (Note 28)

Approved and authorized for issue on behalf of the Board of Directors:

/s/ "Alex Heath"

/s/ "David Anthony"

Director

Director

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

3

Asante Gold Corporation

Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

(Unaudited - Expressed in thousands of Canadian dollars, except per share amount and number of shares)

Three months ended July 31,

Six months ended July 31,

Note

2023

2022

2023

2022

$

$

Revenue

23

135,761

-

267,631

-

Cost of sales

178,531

-

361,230

-

Gross loss

(42,770)

-

(93,599)

-

Operating expenses

2,981

8,636

Accretion

16, 17

-

-

Advertising, trade shows and promotions

209

169

545

311

Depreciation and depletion

11, 12

-

8,742

-

11,805

Finance charges

15, 16

5,338

6,184

9,939

6,222

Foreign exchange gain

(6,419)

(7,971)

(8,245)

(7,564)

General and administrative expenses

3,192

119

6,717

223

Management and consulting fees

22

2,721

1,350

4,733

4,100

Professional fees

22

2,537

299

3,680

514

Share-based payments

22

139

3,626

733

18,019

Shareholder communications

122

99

206

264

Transfer agent and regulatory fees

93

88

110

249

Travel expenses

747

129

1,457

232

Operating loss

(54,430)

(12,834)

(122,110)

(34,375)

Other income (expenses)

-

3,371

Gain on modification of loan

16

-

-

Interest income

-

173

-

173

Loss on amendment of purchase agreement

5

(8,818)

-

(15,830)

-

Unrealized loss on marketable securities

8

(592)

(4,290)

(1,479)

(4,592)

Net loss before income tax

(63,840)

(16,951)

(136,048)

(38,794)

Income tax expense

(3,722)

-

(5,269)

-

Net loss

(67,562)

(16,951)

(141,317)

(38,794)

Other comprehensive income

Gain (loss) on translation of foreign subsidiaries

(9,902)

(2,099)

to presentation currency

2,972

2,693

Total comprehensive loss

(77,464)

(13,979)

(143,416)

(36,101)

Net loss attributed to:

(62,382)

(130,542)

Shareholders of the Company

(16,076)

(37,613)

Non-controlling interest

(5,180)

(875)

(10,775)

(1,181)

(67,562)

(16,951)

(141,317)

(38,794)

Total comprehensive loss attributed to:

(71,482)

(132,430)

Shareholders of the Company

(13,104)

(34,920)

Non-controlling interest

(5,982)

(875)

(10,986)

(1,181)

(77,464)

(13,979)

(143,416)

(36,101)

Net loss per share:

(0.14)

(0.31)

Basic and diluted

(0.05)

(0.12)

Weighted average number of shares:

440,442,897

416,241,208

Basic and diluted

315,372,571

305,189,650

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

4

Asante Gold Corporation

Condensed Interim Consolidated Statements of Cash Flows (Unaudited - Expressed in thousands of Canadian dollars)

Six months ended July 31,

2023

2022

Operating activities:

$

$

(141,317)

Net loss

(38,794)

Items not affecting cash:

8,636

Accretion

-

Depreciation and depletion included in cost of sales

72,893

-

Depreciation and depletion included in operating expenses

-

11,805

Finance charges

9,029

559

Share-based payments

733

18,019

Gain on modification of loan

(3,371)

-

Loss on amendment of purchase agreement

15,830

-

Unrealized foreign exchange loss

1,008

-

Unrealized loss on marketable securities

1,479

4,592

Changes in non-cash working capital:

2,266

Accounts receivable

(380)

Prepaid expenses

(5,874)

(6,225)

Inventories

12,467

(22,123)

Loans receivable

4

(236)

Trade and other payables

81,120

655

Due to related parties

1,305

(34)

Deferred revenue

(32,264)

130,150

Other current liabilities

-

1,235

Cash provided by operating activities

23,944

99,223

Investing activities:

(23,108)

Purchases of property, plant and equipment

(54,846)

Expenditures on mineral properties

(26,277)

-

Investment in marketable securities

-

(3,000)

Expenditures on exploration and evaluation assets

(573)

(1,315)

Repayment of deferred payments

(8,799)

(38,229)

Cash used in investing activities

(58,757)

(97,390)

Cash flows from financing activities

27,348

Proceeds from private placement financing

102,256

Issuance costs

-

(3,224)

Proceeds from options exercised

190

83

Proceeds from warrants exercised

9,678

479

Advances from loans payable

34,579

-

Repayment of loans payable

(29,745)

-

Cash provided by financing activities

42,050

99,594

Effect of foreign exchange on cash

1,737

1,297

Change in cash

8,974

102,724

Cash, beginning of period

2,811

5,849

Cash, end of period

11,785

108,573

Cash paid during the period for:

-

Income taxes

-

Interest expense

2,820

-

Supplemental cash flow disclosures (Note 25)

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

5

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Asante Gold Corporation published this content on 15 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 September 2023 05:44:05 UTC.