Amarc Resources : FY Third Quarter Financial Report

Published: 2025-02-26 17:29:27 ET AHR.V

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

Note

($)

ASSETS

Current assets

1,449,437

9,007,042

Cash

Amounts receivable and other assets

350,599

216,124

Marketable securities

22,286

41,587

Non-curr nt sets

1,822,322

9,264,753

Restricted cash

514,828

534,828

Right-of-use asset

26,901

42,033

Total assets

2,364,051

9,841,614

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

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

54,230

147,333

Flow through liability

769,231

Lease liability

25,640

23,443

2,063,506

7,201,536

Non-current liabilities

898,405

784,947

Director's loan

Lease liability

9,250

28,764

Total liabilities

2,971,161

8,015,247

Shareholders' equity (deficiency)

67,784,821

67,236,421

Share capital

Reserves

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

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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

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

(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

(66,261)

(72,612)

(289,842)

(249,553)

Interest expense - director's loans

25,205

74,342

75,342

Accretion expense - office lease

1,095

1,764

3,806

5,755

Other fee income

(102,078)

(925,919)

(460,000)

Amortization of right-of-use asset

5,044

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.

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Amarc Resources Ltd.

Condensed Interim Statements of Comprehensive (Loss)

(Unaudited - Expressed in Canadian Dollars)

Three months ended

Nine months ended

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.

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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

Number

payments

revaluation

warrants

of shares

Amount

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

Other comprehensive loss for the period

(42,447)

Issuance of common shares pursuant to property

Total comprehensive loss

(42,447)

447,033

404,586

agreement

100,000

7,500

Issuance of common shares pursuant to property

9,615,385

769,231

agreement

Issuance of common shares pursuant to a non-

15,384,615

2,000,000

flow-through private placement

Issuance of common shares pursuant to a flow-

(769,231)

through private placement

Flow-through share premium liability

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)

Other comprehensive loss for the period

(19,301)

Total comprehensive loss

(19,301)

(3,174,475)

(3,193,776)

Issuance of common shares pursuant to property

100,000

7,500

agreement

Shares issued through exercise of options

2,820,000

190,900

Shares issued through exercise of warrants

6,176,470

350,000

Equity-settled share-based compensation

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.

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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:

15,132

Amortization of right-of-use asset

Equity-settled share-based compensation

211,899

80,273

Office lease accretion per IFRS 16

3,806

5,755

Office base rent recorded as lease reduction per IFRS 16

(21,123)

(21,014)

Property acquisition and assessments costs

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

350,000

Proceeds from option exercise

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.

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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.

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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.

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.

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AMARC RESOURCES LTD.

NFortesthetoninethemonthsC densedendedInterimDecemberFinancial31, 2024Statementsand 2023. (Unaudited - Expressed in Canadian Dollars, unless otherwise stated)

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

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Disclaimer

Amarc Resources Ltd. published this content on February 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 26, 2025 at 22:28:05.408.