NOTE 3 — GOING CONCERN

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of April 30, 2023, the Company had cash of approximately $7.8 million, working capital of approximately $8.1 million which consists primarily of cash and an accumulated deficit of approximately $66 million. The Company had a net loss and cash used in operating activities of approximately $7.6 million and $8.7 million, respectively, for the year ended April 30, 2023. As a result of the utilization of cash in its operating activities, and the development of its assets, the Company has incurred losses since it commenced operations. The Company’s primary source of operating funds since inception has been equity financings. As noted in Note 10, in April 2023, the Company completed a registered offering which raised total gross proceeds of approximately $5.0 million before deducting fees and other estimated offering expenses. As of the date of filing the annual report for the year ended April 30, 2023, the Company may have sufficient cash to fund its corporate activities and general and administrative costs and currently undertaken project activities related to permitting and engineering studies. However, in order to advance any of its projects past the aforementioned objectives the Company does not have sufficient cash and will need to raise additional funds. These matters raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the issuance of these consolidated financial statements.

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern.