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Item 8. Financial Statements and Supplementary Data

2020-12-04 compared with 2020-11-24 · 352 added, 611 removed, 667 unchanged (59% of the section changed)

1 unchanged sentence

BUNKER HILL MINING CORP.

AMENDED AND RESTATED

(FORMERLY LIBERTY SILVER CORP.)

A MENDED AND RESTATED

CONSOLIDATED FINANCIAL STATEMENTS

2 unchanged sentences

Bunker Hill Mining Corp.

Amended and Restated Consolidated Balance Sheets

(Formerly Liberty Silver Corp.)

Amended and Restated

Consolidated Balance Sheets

(Expressed in United States Dollars)

8 unchanged sentences

Equipment (note 6

Right-of-use assets ( note 7)

Long term deposit

2 unchanged sentences

Current liabilities

Accounts payable ( notes 8 and 17

Accrued liabilities ( notes 8 and 15

Accounts payable (notes 7

Accrued liabilities (notes 7

Other liabilities

DSU liability ( note 14

Interest payable ( notes 9 and 10

Interest payable

Convertible loan payable (note 8

Promissory notes payable ( note 10)

Current portion of lease liability ( note 11)

Derivative liability - conversion feature (note 8)

Total current liabilities

Non-current liabilities

Lease liability (note 10)

Derivative warrant liability ( notes 9, 10 and 12

Derivative warrant liability (note 9)

Total liabilities

Shareholders' Deficiency

Preferred shares, $0.000001 par value,

10,000,000 preferred shares authorized;

Nil preferred shares issued and outstanding

Common shares, $0.000001 par value,

Preferred shares, $ 0.000001

par value, 10,000,000 preferred shares authorized;

Nil preferred shares issued and outstanding (note 9

Common shares, $ 0.000001

par value, 750,000,000

common shares authorized;

79,259,940 and 15,811,396 common shares

issued and outstanding, respectively (note 11)

15,811,396 and 3,301,372 common shares issued and outstanding, respectively (note 9

Additional paid-in-capital (note 9

Shares to be issued

Shares to be issued (note 1 3

Deficit accumulated during the exploration stage

Total shareholders' deficiency

Total shareholders' deficiency and liabilities

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

Totalshareholders'deficiency

Totalshareholders'deficiencyandliabilities

The accompanying notes are an integral part of these amended and restated

consolidated financial statements.

Bunker Hill Mining Corp.

Amended and Restated Consolidated Statements of Loss and Comprehensive Loss

(Formerly Liberty Silver Corp.)

Amended and Restated

Consolidated Statements of Loss and Comprehensive Loss

(Expressed in United States Dollars)

(As restated)

Year Ended June 30, 2020

(As restated)

Year Ended June 30, 2019

Operating expenses

Operation and administration ( notes 12, 13 and 14

Operation and administration

Legal and accounting

1 unchanged sentence

Other income or gain (expense or loss)

Change in derivative liability ( notes 9, 10 and 12

Accretion expense ( notes 9 and 10

Financing costs ( note 10

Loss on foreign exchange

Interest expense ( notes 9 and 10

Change in derivative liability (notes 8

Accretion expense (note 8

(Loss) gain on foreign exchange

Interest expense (note 8

Loss on sale of equipment

Loss on loan extinguishment (note 8

Loss on debt settlement ( note 12

Loss before income tax

Provision for income taxes

Net loss and comprehensive loss for the year

Net loss per common share - basic and fully diluted

Weighted average number of common shares - basic and fully diluted

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

Provisionforincometaxes

Netlossandcomprehensivelossfortheyear

$ (8,442,320)

$ (5,716,606)

Netlosspercommonshare-basicandfullydiluted

Weightedaveragenumberofcommonshares-basicandfullydiluted

The accompanying notes are an integral part of these amended and restated

consolidated financial statements.

Bunker Hill Mining Corp.

Amended and Restated Consolidated Statements of Cash Flows

(Formerly Liberty Silver Corp.)

Amended and Restated

Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

(As restated)

Year Ended June 30, 2020

(As restated)

Year Ended June 30, 2019

Operating activities

Net loss for the year

$ ( 8,442,320)

$ ( 5,716,606)

Adjustments to reconcile net loss to net cash used in operating activities::

1 unchanged sentence

Depreciation expense

Write-down of mining interest

Change in fair value of warrant liability

Accretion expense

Financing costs

Loss on sale of equipment

Loss on loan extinguishment

Interest expense on lease liability

Loss on debt settlement

Foreign exchange gain on re-translation of lease liability

Changes in operating assets and liabilities:

10 unchanged sentences

Proceeds on disposal of equipment

Net cash (used in) provided by investing activities

Net cash provided by (used in) investing activities

Financing activities

Proceeds from convertible loan payable

Proceeds from issuance of common stock, net of issue costs

Proceeds from warrants exercised

Proceeds from issuance of common stock, net

Proceeds from stock options exercised

Shares to be issued

Lease payments

Proceeds from promissory notes

Repayment of promissory note

Net cash provided by financing activities

4 unchanged sentences

Non-cash activities:

Common stock issued to settle accounts payable, accrued liabilities

and promissory notes

Common stock issued to settle convertible loan

Common stock issued to settle convertible loan payable

Disposal of equipment used to settle accounts payable

Stock options exercised used to settle accrued liabilities

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

The accompanying notes are an integral part of these amended and restated

consolidated financial statements.

Bunker Hill Mining Corp.

Amended and Restated Consolidated Statements of Changes in Shareholders' Deficiency

(Formerly Liberty Silver Corp.)

Amended and Restated Consolidated

Statements of Changes in Shareholders’ Deficiency

(Expressed in United States Dollars)

paid-in-capital

Balance, June 30, 2018 (As restated, note 5)

Additional paid-in-capital

Shares to be issued

Deficit accumulated during the exploration stage

Balance, June 30, 2017

$ (18,443,702)

Stock-based compensation

Units issued at $3.42 per share (i)

Units issued at $0.57 per share (ii)

Units issued at $0.04 per share (iii)

Stock options exercised

Shares to be issued

Warrant valuation

Shares issued at $9.77 per share (i)

Net loss for the year

2 unchanged sentences

Stock-based compensation

Shares and units issued at $0.04 per share (iii)

Units issued for debt settlement at $0.09 per share

Shares issued for debt settlement at $0.14 per share

Shares issued at $0.42 per share (iv)

Shares issued for debt settlement at $0.42 per share (iv)

Finder's units issued

Finder's warrants issued

Warrants exercised at $0.18 per share (v)

issued at $7.80 per share (ii)

issued at $0.57 per share (iii)

issued at $0.04 per share (iv)

Stock options exercised

Warrant valuation

4 unchanged sentences

$ (8,210,510)

(i) Units issued at C$4.50, converted to US at $3.42 ( note 12

(ii) Units issued at C$0.75, converted to US at $0.57 ( note 12

(iii) Shares and units issued at C$0.05, converted to US at $0.04 ( note 12

(iv) Shares issued at C$0.56, converted to US at $0.42 ( note 12

(v) Shares issued upon warrants exercised at C$0.25, converted to US at $0.18 ( note 12)

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

(i) Shares issued from proceeds at $12.50 CAD, converted to US at $9.77 (note 9

(ii) Units issued

from proceeds at $4.50 CAD, converted to US at $3.42 (note 9

issued from proceeds at $0.75 CAD, converted to US at $0.57 (note 9)

issued from proceeds at $0.05 CAD, converted to US at $0.04 (note 9

The accompanying notes are an integral part of these amended and restated

consolidated financial statements.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

4 unchanged sentences

Bunker Hill Mining Corp.

(the “Company”) was incorporated under the laws of the state of Nevada, U.S.A on February 20, 2007 under the name Lincoln Mining Corp.

(formerly Liberty Silver Corp.) (the “Company”) was incorporated under the laws of the state of Nevada, U.S.A on February 20, 2007 under the name Lincoln Mining Corp.

Pursuant to a Certificate of Amendment dated February 11, 2010, the Company changed its name to Liberty Silver Corp., and on September 29, 2017 the Company changed its name to Bunker Hill Mining Corp.

The Company’s registered office is located at 1802 N.

Carson Street, Suite 212, Carson City Nevada 89701, and its head office is located at 401 Bay Street, Suite 2702, Toronto, Ontario, Canada, M5H 2Y4.

Carson Street, Suite 212, Carson City Nevada 89701, and its head office is located at 401 Bay Street, Suite 2702, Toronto, Ontario, Canada, M5H 2Y4, and its telephone number is 888-749-4916.

As of the date of this Form 10-K, the Company had two subsidiaries, Bunker Hill Operating LLC, a Colorado corporation that is currently dormant, and American Zinc Corp., an Idaho corporation created to facilitate the work being conducted at the Bunker Hill Mine in Idaho.

2 unchanged sentences

These consolidated financial statements have been prepared on a going concern basis.

The Company (the "Company") has incurred losses since inception resulting in an accumulated deficit of $ 63,924,419 (restated)

The Company has incurred losses since inception resulting in an accumulated deficit of $ 32,602,628 (restated)

and further losses are anticipated in the development of its business.

7 unchanged sentences

The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, explore and develop the mineral properties and the discovery, development, and sale of reserves.

These financial statements of the Company for the year ended June 30, 2020 were approved and authorized for issue by the Board of Directors of the Company on November 23,

The Company’s operations could be significantly adversely affected by the effects of a widespread global outbreak of a contagious disease, including the recent outbreak of respiratory illness caused by COVID-19.

The Company cannot accurately predict the impact COVID-19 will have on its operations and the ability of others to meet their obligations with the Company, including uncertainties relating to the ultimate geographic spread of the virus, the severity of the disease, the duration of the outbreak, and the length of travel and quarantine restrictions imposed by governments of affected countries.

In addition, a significant outbreak of contagious diseases in the human population could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting in an economic downturn that could further affect the Company’s operations and ability to finance its operations.

These financial statements of the Company for the year ended June 30, 2019 were approved and authorized for issue by the Board of Directors of the Company on December 3, 2020

Basis of presentation

3 unchanged sentences

The Company’s fiscal year end is June 30.

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Significant accounting policies

The following is a summary of significant accounting policies used in the preparation of these consolidated financial statements.

The following is a summary of significant account policies used in the preparation of these consolidated financial statements.

Basis of consolidation

2 unchanged sentences

All intercompany transactions and balances have been eliminated on consolidation.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2019 and 2018

(Expressed in United States Dollars)

Significant accounting policies (continued)

Cash and cash equivalents

13 unchanged sentences

Equipment is stated at cost less accumulated depreciation.

Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which range from 3 to 10 years.

Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which are generally 5 years.

The cost of repairs and maintenance is charged to expense as incurred.

2 unchanged sentences

If events and circumstances warrant evaluation, the Company uses an estimate of the related undiscounted cash flows over the remaining life of the equipment in measuring their recoverability.

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Significant accounting policies (continued)

Operating lease right of use assets ("ROU") assets represents the right to use the leased asset for the lease term and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date.

As most leases do not provide an implicit rate, the Company use an incremental borrowing rate based on the information available at the adoption date in determining the present value of future payments.

Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included in operation and administration expenses in the consolidated statements of loss and comprehensive loss.

The Company is required to make additional payments for certain variable costs.

These costs are expensed and included in operation and administration expenses in the consolidated statements of loss and comprehensive loss.

Rental income obtained through subleases is recorded as income over the lease term and is offset against operation and administration expenses.

Impairment of long-lived assets

The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate the related carrying amounts may not be recoverable.

The assets are subject to impairment consideration under FASB ASC 360, Property, Plant and Equipment, if events or circumstances indicate that their carrying amount might not be recoverable.

The assets are subject to impairment consideration under FASB ASC 360-10-35, Measurement of an Impairment Loss, if events or circumstances indicate that their carrying amount might not be recoverable.

When the Company determines that an impairment analysis should be done, the analysis is performed using the rules of FASB ASC 930-360-35, Extractive Activities - Mining, and 360-10-15-3 through 15-5, Impairment or Disposal of Long-Lived Assets.

2 unchanged sentences

The ability to achieve the estimated quantities of recoverable minerals from exploration stage mineral interests involves further risks in addition to those factors applicable to mineral interests where proven and probable reserves have been identified, due to the lower level of confidence that the identified mineralized material can ultimately be mined economically.

Fair value of financial instruments

The Company adopted FASB ASC 820-10, Fair Value Measurement.

This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures.

The three levels are defined as follows:

* Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

* Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

* Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable excluding HST, accounts payable, accrued liabilities, interest payable, convertible loan payable, promissory notes payable, lease liability, and other liabilities, all of which qualify as financial instruments, are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and current market rate of interest.

The Company measured its DSU liability at fair value on recurring basis using level 1 inputs and derivative warrant liabilities at fair value on recurring basis using level 3 inputs.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

3 unchanged sentences

Significant accounting policies (continued)

Fair value of financial instruments

The Company adopted FASB ASC 820-10-50, Fair Value Measurements.

This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures.

The three levels are defined as follows:

* Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

* Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, interest payable, convertible loan payable, and derivative liability, all of which qualify as financial instruments, are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and current market rate of interest.

Environmental expenditures

13 unchanged sentences

The Company recognizes tax-related interest and penalties, if any, as a component of income tax expense.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2019 and 2018

(Expressed in United States Dollars)

Significant accounting policies (continued)

FSAB ASC 740 prescribes recognition threshold and measurement attributes for the consolidated financial statements recognition and measurement of a tax position taken, or expected to be taken, in a tax return.

FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in periods, disclosure and transition.

At June 30, 2018 and June 30, 2017, the Company has not taken any tax positions that would require disclosure under FASB ASC 740.

At June 30, 2019

and June 30, 2018

, the Company has not taken any tax positions that would require disclosure under FASB ASC 740.

Basic and diluted net loss per share

4 unchanged sentences

As of June 30, 2019, 287,100 stock options and 13,046,484 warrants were considered in the calculation but not included, as they were anti-dilutive (June 30, 2018 - 287,100 stock options and 663,496 warrants).

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Significant accounting policies (continued)

Stock-based compensation

4 unchanged sentences

That cost will be measured based on the fair value of the equity or liability instruments issued.

The Company accounts for stock-based compensation arrangements with non-employees in accordance with ASU 505-50, Equity-Based Payments to Non-Employees, which requires that such equity instruments are recorded at the value on the grant date based on fair value of the equity or goods and services whichever is more reliable.

Restricted share units

For Restricted Share Units ("RSUs"), the Company estimates the grant date fair value using the Company's common shares on the Canadian Securities Exchange at the grant date.

The Company records the value of the RSUs in paid-in capital.

Deferred share units

The Company estimates the grant date fair value of the Deferred Share Units ("DSUs") using the trading price of the Company's common shares on the Canadian Securities Exchange on the day of grant.

The Company records the value of the DSUs owing to its directors as DSU liability and measures the DSU liability at fair value at each reporting date, with changes in fair value recognized as stock-based compensation in profit (loss).

Use of estimates and assumptions

3 unchanged sentences

Areas of significant judgment and estimates affecting the amounts recognized in the consolidated financial statements include:

Going concern

The assessment of the Company's ability to continue as a going concern involves judgment regarding future funding available for its operations and working capital requirements as discussed note 1.

Accrued liabilities

The Company has to make estimates to accrue for certain expenditures due to delay in receipt of third party vendor invoices.

These accruals are made based on trends, history and knowledge of activities.

Actual results may be different.

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Significant accounting policies (continued)

Use of estimates and assumptions (continued)

Convertible loans, promissory notes and warrants

Estimating the fair value of derivative warrant liability and conversion feature derivative liability requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the issuance.

Impairment of mining interests

The Company’s fair value measurement with respect to the carrying amount of mining interests is based on numerous assumptions and may differ significantly from actual fair values.

The fair values are based, in part, on certain factors that may be partially or totally outside of the Company’s control.

This evaluation involves a comparison of the estimated recoverable amount of mining interests to their carrying values.

The Company’s fair value estimates are based on numerous assumptions.

Convertible loans and warrants

Estimating the fair value of warrants and conversion feature derivative liability requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the issuance.

This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the warrants and conversion feature derivative liability, volatility and dividend yield and making assumptions about them.

4 unchanged sentences

Factors that could trigger an impairment review include, but are not limited to, significant negative industry or economic trends, interruptions in exploration activities or a significant drop in precious metal prices

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2019 and 2018

(Expressed in United States Dollars)

Significant accounting policies (continued)

Concentrations of credit risk

8 unchanged sentences

The Company will use its US dollars to settle the Canadian dollar liabilities and any differences resulting from the exchange transaction are reported as gain or loss on foreign exchange.

The gain or loss reported by the Company in the consolidated financial statements represents transaction gain or loss.

Segment reporting

1 unchanged sentence

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company has one operating segment and reporting unit.

The Company operates in one reportable business segment and is organized and operated as one business.

Management reviews its business as a single operating segment, using financial and other information rendered meaningful only by the fact that such information is presented and reviewed in the aggregate.

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Significant accounting policies (continued)

Convertible loans and promissory notes payable

The Company reviews the terms of its convertible loans and promissory notes payable to determine whether there are embedded derivatives, including the embedded conversion option, that are required to be bifurcated and accounted for as individual derivative financial instruments.

In circumstances where the convertible debt or the promissory note contains embedded derivatives that are to be separated from the host contracts, the total proceeds received are first allocated to the fair value of the derivative financial instruments determined using the binomial model.

The Company does not have any reportable segments.

Convertible loan payable

The Company reviews the terms of its convertible loans payable to determine whether there are embedded derivatives, including the embedded conversion option, that are required to be bifurcated and accounted for as individual derivative financial instruments.

In circumstances where the convertible debt contains embedded derivatives that are to be separated from the host contracts, the total proceeds received are first allocated to the fair value of the derivative financial instruments determined using the binomial model.

The remaining proceeds, if any, are then allocated to the debenture cost contracts, usually resulting in those instruments being recorded at a discount from their principal amount.

3 unchanged sentences

The Company presents its embedded derivatives and related debenture host contracts as separate instruments on the consolidated balance sheets.

New and recently adopted technical and accounting pronouncements

The Company adopted ASU 2016-02 effective July 1, 2019.

ASU 2016-02 requires lessees to recognize most leases on the balance sheet to reflect the right to use an asset for a period of time and an associated lease liability for payments.

The Company has applied ASU 2016-02 in accordance with the modified retrospective approach only to contracts that were previously identified as leases.

Contracts that were not identified as leases under previous standards were not reassessed for whether there is a lease.

Therefore, the definition of a lease under ASU 2016-02 was applied only to contacts entered into or changed on or after July 1, 2019.

There is no change to the comparative periods or transitional adjustments required as a result of the adoption of this standard using the modified retrospective approach.

The aggregate lease liability recognized in the statement of financial position at July 1, 2019 and Company's operating lease commitment at July 1, 2019 can be reconciled as follows:

Operating lease commitment as at July 1, 2019

Effect of discounting at the incremental borrowing rate

Total lease liability as at July 1, 2019

The weighted average incremental borrowing rate applied to lease liability on July 1, 2019 was 10%.

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments.

The pronouncement revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded.

The guidance is effective for fiscal years beginning after December 15, 2019.

The Company is currently evaluating the potential impact of this guidance on the consolidated financial statements.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

2 unchanged sentences

(Expressed in United States Dollars)

New and recently adopted technical and accounting pronouncements

In November 2015, the FASB issued ASU No.

2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires that deferred tax liabilities and assets be classified on our Consolidated Balance Sheets as noncurrent based on an analysis of each taxpaying component within a jurisdiction.

2015-17 is effective for the fiscal year commencing after December 15, 2017.

The adoption of ASU No.

2015-17 did not have a material effect on the financial position or the results of operations.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows:

Classification of Certain Cash Receipts and Cash Payments”.

This ASU provides eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows.

ASU 2016-15 is effective for the fiscal year commencing after December 15, 2017.

The adoption of ASU 2016-15 did not have on the consolidated statements of cash flows.

In February 2016, the FASB issued ASU 2016-02, Leases.

This update requires organizations to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases.

The new guidance will also require additional disclosure about the amount, timing and uncertainty of cash flows arising from leases.

The provisions of this update are effective for annual and interim periods beginning after December 15, 2018.

The Company is still assessing the impact that the adoption of ASU 2016-02 will have on the financial position and the results of operations.

Restatement of previously issued financial statements

In November 2020, it was determined that the Company has underaccrued for invoices issued by the United States Environmental Protection Agency ("EPA") for excess water treatment costs relating to years ended June 30, 2018, 2019 and 2020, interest payable on the outstanding EPA balance, and for a finder's fee related to the Company's February 2020 private placement, which resulted in an understatement of liabilities for 2019 and 2020, an overstatement of additional paid-in-capital for 2020, an understatement of opening and closing deficit for 2019 and 2020, and an understatement of exploration expenses and net losses for 2019 and 2020.

The following table present the impact of the restatement adjustments on the Company's previously issued consolidated financial statements for the years ended June 30, 2019 and 2020.

In November 2020, it was determined that the Company has underaccrued for invoices issued by the United States Environmental Protection Agency ("EPA") for excess water treatment costs relating to years ended June 30, 2018, 2019 and 2020 and interest payable on the outstanding EPA balance, which resulted in an understatement of liabilities for 2018 and 2019, an understatement of opening deficit for 2019 and closing deficit for 2018 and 2019, and an understatement of exploration expenses and net losses for 2018 and 2019.

The following tables present the impact of the restatement adjustments on the Company's previously issued consolidated financial statements for the years ended June 30, 2018 and 2019.

Impact to Consolidated Statements of Loss and Comprehensive Loss

Year ended June 30, 2019

As previously

Year ended June 30, 2018

Loss from operations

5 unchanged sentences

Net loss per common share - basic and fully diluted

Year ended June 30, 2020

As previously

Year ended June 30, 2019

Loss from operations

5 unchanged sentences

Net loss per common share - basic and fully diluted

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2019 and 2018

(Expressed in United States Dollars)

Restatement of previously issued financial statements (continued)

Impact to Consolidated Balance Sheets

As at June 30, 2019

As previously

As at June 30, 2018

Accounts payable

4 unchanged sentences

$ (24,160,308)

$ (32,602,628)

Total shareholders' deficiency

$ (6,959,283)

$ (1,251,227)

$ (8,210,510)

As at June 30, 2020

As previously

As at June 30, 2019

Accounts payable

Accrued liabilities

Total current liabilities

Total liabilities

Additional paid-in-capital

Deficit accumulated during exploration stage

6 unchanged sentences

$ (8,210,510)

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Restatement of previously issued financial statements (continued)

Impact to Consolidated Statements of Cash Flows

Year ended June 30, 2019

As previously

For the year ended June 30, 2018

Net loss for the year

3 unchanged sentences

Accounts payable

Year ended June 30, 2020

As previously

Year ended June 30, 2019

Net loss for the year

3 unchanged sentences

Accounts payable

Accrued liabilities

Impact to Consolidated Statements of Changes in Shareholders' Deficiency

As previously

Deficit accumulated during the exploration stage, June 30, 2018

$ (23,613,576)

$ (24,160,308)

Balance, Total, June 30, 2018

Net loss for the year ended June 30, 2018

4 unchanged sentences

$ (24,160,308)

$ (32,602,628)

Balance, Total, June 30, 2018

$ (6,959,283)

$ (1,251,227)

$ (8,210,510)

Net loss for the year ended June 30, 2019

9 unchanged sentences

$ (8,210,510)

The circumstances associated with the adjustments also created errors in each of the previously reported quarters in 2019 and 2020, which have also been restated on a quarterly basis as disclosed in note 20.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

2 unchanged sentences

(Expressed in United States Dollars)

Restatement of previously issued financial statements (continued)

The circumstances associated with the adjustments also created errors in each of the previously reported quarters in 2018 and 2019, which have also been restated on a quarterly basis as disclosed in note 14.

In addition, subsequent to the year end, the Company amended its articles of incorporation to change the authorized capital and the par values, which have been retrospectively applied in these amended and restated consolidated financial statements (note 9).

Equipment consists of the following:

2 unchanged sentences

Equipment, net

Right-of-use asset

Right-of-use asset consists of the following:

Less accumulated depreciation

Right-of-use asset, net

Mining interests (restated)

4 unchanged sentences

The acquisition would also include all current and historic data relating to the Bunker Hill Mine Complex, such as drill logs, reports, maps, and similar information located at the mine site or any other location.

During the year ended June 30, 2017, the Company made payments totaling $300,000 as part of this Letter of Intent.

These amounts were initially capitalized and subsequently written off during fiscal 2018 and were included in exploration expenses.

During the fiscal year ended June 30, 2017, the Company made payments totaling $300,000 as part of this Letter of Intent.

These amounts were initially capitalized and subsequently written off during fiscal 2018 and are included in exploration expenses.

On August 28, 2017, the Company announced that it signed a definitive agreement (the “Agreement”) for the lease and option to purchase the Bunker Hill Mine assets (the “Bunker Assets”).

3 unchanged sentences

During the term of the lease, the Company must make $100,000 monthly mining lease payments, paid quarterly.

The Company has an option to purchase the Bunker Assets at any time before the end of the lease and any extension for a purchase price of $45 million with purchase payments to be made over a ten-year period to Placer Mining.

Under terms of the agreement, there is a 3% net smelter return royalty (“NSR”) on sales during the Lease and a 1.5% NSR on the sales after the purchase option is exercised, which post-acquisition NSR is capped at $60 million.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

4 unchanged sentences

Bunker Hill Mine Complex (continued)

The Company had an option to purchase the Bunker Assets at any time before the end of the lease and any extension for a purchase price of $45 million with purchase payments to be made over a ten-year period to Placer Mining.

On October 2, 2018, the Company announced that it was in default of its Lease with Option to Purchase Agreement with Placer Mining.

October 2, 2018, the Company announced that it was in default of its Lease with Option to Purchase Agreement with Placer Mining.

The default arose as a result of missed lease and operating cost payments, totaling $400,000, which were due at the end of September and on October 1, 2018.

1 unchanged sentence

While Management worked with urgency to resolve this matter, Management was ultimately unsuccessful in remedying the default, resulting in the lease being terminated.

On November 13, 2018, the Company announced that it was successful in renewing the lease, effectively with the original Agreement intact, except that monthly payments are reduced to $60,000 per month for 12 months, with the accumulated reduction in payments of $140,000 per month (“deferred payments”) being accrued.

As at June 30, 2020, the Company has accrued for a total of $1,847,300 (June 30, 2019 - $1,373,000), which is included in accounts payable.

These deferred payments will be waived should the Company choose to exercise its option.

On October 22, 2019, the Company signed a further amendment to the Agreement.

The key terms of this amended agreement are as follows:

* The lease period has been extended for an additional period of nine months to August 1, 2020, with the option to extend for a further 6 months based upon payment of a 1 time $60,000 extension fee (extended subsequent to June 30, 2020, see note 19

* The Company will continue to make monthly care and maintenance payments to Placer Mining of $60,000 until exercising the option to purchase.

* The purchase price is set at $11 million for 100% of the marketable assets of Bunker Assets to be paid with $6,200,000 in cash, and $4,800,000 in shares.

The purchase price also includes the negotiable EPA costs of $20 million.

The amended lease provides for the elimination of all royalty payments that were to be paid to the mine owner.

Upon signing the amended agreement, the Company paid a one-time, non-refundable cash payment of $300,000 to the mine owner.

This payment will be applied to the purchase price upon execution of the purchase option.

In the event the Company elects not to exercise the purchase option, the payment shall be treated as an additional care and maintenance payment.

In addition to the payments to Placer Mining, and pursuant to an agreement with the United States Environmental Protection Agency (“EPA”) whereby for so long as Bunker leases, owns and/or occupies the Bunker Hill Mine, the Company will make payments to the EPA on behalf of the current owner in satisfaction of the EPA’s claim for cost recovery.

As at June 30, 2019, the Company has accrued for $1,373,000 of the deferred payments and is included in accounts payable.

In addition to the payments to Placer Mining, and

pursuant to an agreement with the United States Environmental Protection Agency (“EPA”) whereby for so long as Bunker leases, owns and/or occupies the Bunker Hill Mine, the Company will make payments to the EPA on behalf of the current owner in satisfaction of the EPA’s claim for cost recovery.

These payments, if all are made, will total $20 million.

The agreement calls for payments starting with $1 million 30 days after a fully ratified agreement was signed followed by a payment schedule detailed below:

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Mining interests (restated) (continued)

Bunker Hill Mine Complex (continued)

The agreement calls for payments starting with $1 million 30 days after a fully ratified agreement was signed followed by payment schedule detailed below:

Within 30 days of the effective date

7 unchanged sentences

In addition to these cost recovery payments, the Company is to make semi-annual payments of $480,000 on June 1 and December 1 of each year, to cover the EPA’s costs of operating and maintaining the water treatment facility that treats the water being discharged from the Bunker Hill Mine.

Of these, the December 1, 2018, and June 1, 2019 semi-annual water treatment payments were not made, totaling $960,000 outstanding as at June 30, 2020 (June 30, 2019 - $560,000).

Of these, $560,000 is outstanding as at June 30, 2019 (June 30, 2018 - $80,000).

The Company also has received invoices from the EPA for water treatment charges for the periods from December 2017 to October 2019.

This was for a total of $3,749,388, with $2,229,408 outstanding as at June 30, 2020 (June 30, 2019 - $1,209,530).

This was for a total of $3,749,388, with $1,209,530 additional accruals required as at June 30, 2019 (June 30, 2018 - $546,125).

The Company is having discussions with the EPA to review and, where appropriate, have the additional water treatment charges amended.

1 unchanged sentence

As at June 30, 2019, the interest accrued on the unpaid EPA balance is $13,061 (June 30, 2018 - $607).

For 2020, the Company has accrued an estimate for additional water treatment charges based on invoices for 2018 and 2019 received from the EPA, for a total of an additional semi-annual accrual of $799,998.

The Company has included all unpaid and accrued EPA payments and accrued interest in accounts payable and accrued liabilities amounting to $7,905,235 (June 30, 2019 - $3,811,227).

Trinity Project

On August 31, 2017, the Company and Renaissance Exploration Inc.

signed a notice of termination and release of exploration Earn-In Agreement.

Upon signing this agreement, the Company has terminated the March 29, 2010 Earn-In Agreement.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

9 unchanged sentences

Lastly, among other things, the loan agreement further provides that for as long as any amount is outstanding under the convertible loan, the investor retains a right of first refusal on any Company financing or joint venture/strategic partnership/disposal of assets.

In August 2018, the amount of the Hummingbird convertible loan payable was increased to $2 million from its original $1.5 million loan, net of $45,824 of debt issue costs.

An additional 116,714 warrants with each warrant exercisable at C$4.50 were issued.

In August 2018, the amount of the Hummingbird convertible loan payable was increased to $2 million from its original $1.5 million loan, net of $45,824 of debt issue costs, of which $25,750 was incurred in the current period.

Under the terms of the Amended and Restated Loan Agreement, Hummingbird may, at any time prior to maturity, convert any or all of the principal amount of the loan and accrued interest thereon, into common shares of Bunker as follows:

1 unchanged sentence

(ii) 229,464 common shares may be acquired upon exercise of warrants at a price of C$8.50 per warrant for a period of two years from the date of issuance;

(iii) $500,000, being the additional principal amount (“Additional Amount”), may be converted at a price per share equal to C$4.50;

(iii) $500,000, being the additional principal amount (“Additional Amount”), the Additional Amount may be converted at a price per share equal to C$4.50;

and (iv) 116,714 common shares may be acquired upon exercise of warrants at a price of C$4.50 per warrant for a period of two years from the date issuance.

In the event that Hummingbird would acquire common shares in excess of 9.999% through the conversion of the Principal Amount or Additional Amount, including interest accruing thereon, or on exercise of the warrants as disclosed herein, the Company shall pay to Hummingbird a cash amount equal to the common shares exercised in excess of 9.999%, multiplied by the conversion price.

In March 2019, Hummingbird agreed to extend the scheduled maturity date of the loan to June 30, 2020.

This was accounted for as a loan extinguishment which resulted in the recording of a net loss on loan extinguishment of $1,195,880.

In June 2019, the Company repaid $100,000 of the Additional Amount, which resulted in the recording of a net loss on loan extinguishment of $8,193.

The Company has accounted for the conversion features and warrants in accordance with ASC Topic 815.

The conversion features and warrants are considered derivative financial liabilities as they are convertible into common shares at a conversion price denominated in a currency other than the Company’s functional currency of the US dollar.

The estimated fair value of the conversion features and warrants was determined on the date of issuance and marks to market at each financial reporting period.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

3 unchanged sentences

Convertible loan payable (continued)

During the year ended June 30, 2019, Hummingbird agreed to extend the scheduled maturity date of the loan to June 30, 2020.

This was accounted for as a loan extinguishment which resulted in the recording of a net loss on loan extinguishment of $1,195,880.

In June 2019, the Company settled $100,000 of the Additional Amount by issuing 2,660,000 shares, which resulted in the recording of a net loss on loan extinguishment of $8,193.

In February 2020, the Company settled $300,000 of the Additional Amount by issuing 696,428 shares, which resulted in the recording of a net loss on loan extinguishment of $9,407.

In June 2020, Hummingbird agreed to extend the scheduled maturity date of the loan to July 31, 2020.

An extension of the loan is being negotiated and the loan has not been repaid.

The Company has accounted for the conversion features and warrants in accordance with ASC Topic 815.

The estimated fair value of the conversion features and warrants was determined on the date of issuance and marks to market at each financial reporting period.

At June 30, 2020, the fair value of the conversion features were estimated using the Binomial model to determine the fair value of conversion features using the following assumptions:

At June 30, 2019, the fair value of the conversion features was estimated using the Binomial model to determine the fair value of conversion features using the following assumptions:

Principal Amount

6 unchanged sentences

Additional Amount

June 30, 2019

August 9, 2018

June 30, 2019

3 unchanged sentences

Change in derivative liability

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Convertible loan payable (continued)

The fair value of the warrants were estimated using the Binomial model to determine the fair value of the derivative warrant liabilities using the following assumptions:

7 unchanged sentences

Additional Amount

June 30, 2019

August 9, 2018

June 30, 2019

3 unchanged sentences

Change in derivative liability

Accretion expense for the year ended June 30, 2020 was $146,266 (year ended June 30, 2019 - $734,589) based on effective interest rate of 16% after the loan extension.

Interest expense for the year ended June 30, 2020 was $179,726 (year ended June 30, 2019 - $198,219).

As at June 30, 2020, the Company has an outstanding interest payable of $381,233 (June 30, 2019 - $201,507).

Balance, June 30, 2018

Proceeds on issuance

Debt issue costs

Conversion feature valuation

Warrant valuation

Accretion expense

Loss on loan extinguishment

Partial extinguishment

Balance, June 30, 2019

Accretion expense

Loss on loan extinguishment

Partial extinguishment

Balance, June 30, 2020

The residual value of the Principal Amount was deemed to be $61,448, net of $20,074 of expenses, and the residual value of the Additional Amount was deemed to be $34,850, net of $38,449 of expenses.

The residual value of the loan after the loan extension was deemed to be $1,800,000, net of $200,000 of expenses.

Accretion expense for the year ended June 30, 2019 were $734,589 (year ended June 30, 2018 - $9,373) based on effective interest rates of 32% for the Principal Amount, 26% for the Additional Amount, and 17% after the loan extension.

Interest expense for the year ended June 30, 2019 were $198,219 (year ended June 30, 2018 - $3,287).

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

2 unchanged sentences

(Expressed in United States Dollars)

Promissory notes payable

(i) On November 13, 2019, the Company issued a promissory note in the amount of $300,000.

The note is unsecured, bears interest of 1% monthly, and is due on demand after 90 days from issuance.

In consideration for the loan, the Company issued 400,000 common share purchase warrants to the lender.

Each whole warrant entitles the lender to acquire one common share of the Company at a price of C$0.80 per share for a period of two years.

On April 24, 2020, the Company extended the maturity date of the promissory note payable to August 1, 2020.

In consideration, the Company issued 400,000 common share purchase warrants to the lender at an exercise price of C$0.50.

The warrants expire on November 13, 2021.

This was accounted for as a loan modification.

The Company has accounted for the warrants in accordance with ASC Topic 815.

The warrants are considered derivative financial liabilities as they are convertible into common shares at a conversion price denominated in a currency other than the Company’s functional currency of the US dollar.

The estimated fair value of the warrants was determined on the date of issuance and marks to market at each financial reporting period.

The fair value of the warrants were estimated using the Binomial model to determine the fair value of the derivative warrant liabilities using the following assumptions:

November 2019 issuance

November 14, 2019

June 30, 2020

Expected life

Risk free interest rate

Dividend yield

Change in derivative liability

April 2020 issuance

April 24, 2020

June 30, 2020

Expected life

Risk free interest rate

Dividend yield

Change in derivative liability

Accretion expense for the year ended June 30, 2020 was $155,001 (year ended June 30, 2019 - $nil) based on effective interest rate of 11% after the loan extension.

Interest expense for the year ended June 30, 2020 was $22,700 (year ended June 30, 2019 - $nil).

As at June 30, 2020, the Company has an outstanding interest payable of $22,700 (June 30, 2019 - $nil).

Convertible loan payable (continued)

Balance, June 30, 2017

Proceeds on issuance

Debt issue costs

Conversion feature valuation

Warrant valuation

1 unchanged sentence

Balance, June 30, 2018

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Promissory notes payable (continued)

(ii) On December 31, 2019, the Company issued a promissory note in the amount of $82,367 (C$107,000).

The note bears no interest and is due on demand.

This promissory note has been repaid.

(iii) On January 29, 2020, the Company issued a promissory note in the amount of $75,727 (C$100,000).

The note bears no interest and is due on demand.

This promissory note has been repaid.

(iv) On May 12, 2020, the Company issued a promissory note in the amount of $362,650 (C$500,000), net of $89,190 of debt issue costs.

The note bears no interest is due on demand after 90 days after the issue date.

Subsequent to June 30, 2020, C$288,000 was settled by shares and the remaining balance was repaid in full.

Accretion expense for the year ended June 30, 2020 was $41,453 (year ended June 30, 2019 - $nil) based on effective interest rate of 7%.

(v) On May 12, 2020, the Company issued a promissory note in the amount of $141,704 (C$200,000), net of $35,676 of debt issue costs.

The note bears no interest is due on demand after 90 days after the issue date.

The promissory note was settled in full by shares issued subsequent to June 30, 2020 ( see note 19).

Accretion expense for the year ended June 30, 2020 was $16,547 (year ended June 30, 2019 - $nil) based on effective interest rate of 8%.

(vi) On June 30, 2020, the Company issued a promissory note in the amount of $75,000 ($103,988), net of $15,000 of debt issue costs.

The note bears no interest and is due on demand.

The promissory note was repaid in full subsequent to June 30, 2020.

Financing cost for the year ended June 30, 2020 was $15,000 (year ended June 30, 2019 - $nil).

(vii) On June 30, 2020, the Company issued a promissory note in the amount of $75,000 ($103,988) to a director of the Company.

The note bears no interest and is due on demand.

The promissory note was repaid in full subsequent to June 30, 2020.

Financing cost for the year ended June 30, 2020 was $15,000 (year ended June 30, 2019 - $nil).

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Lease liability

The Company has an operating lease for office space that expires in 2022.

Below is a summary of the Company's lease liability as of June 30, 2020:

Balance, June 30, 2019

Interest expense

Lease payments

Foreign exchange gain

Proceeds on issuance

Debt issue costs

Conversion feature valuation

Warrant valuation

Accretion expense

Loss on loan extinguishment

Partial extinguishment

Balance, June 30, 2018

current portion

Long-term lease liability

In addition to the minimum monthly lease payments of C$13,504, the Company is required to make additional payments amounting to C$12,505 for certain variable costs.

The schedule below represents the Company's obligations under the lease agreement in Canadian dollars.

Less than 1 year

Additional rent

The monthly rental expenses are offset by rental income obtained through a series of subleases held by the Company.

Capital stock, warrants and stock options

Capital stock, warrants and stock options (restated)

The total authorized capital is as follows:

* 750,000,000 common shares with a par value of $0.000001 per common share;

* 10,000,000 preferred shares with a par value of $0.000001 per preferred share

On May 23, 2019, the Company affected a consolidation of its issued and outstanding share capital on the basis of one (1) post-consolidation share for each ten (10) pre-consolidation common shares, which has been retrospectively applied in these consolidated financial statements.

On July 19, 2019, the Company amended its articles of incorporation to change the total authorized capital and the par values, which have been retrospectively applied in these consolidated financial statements.

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Capital stock, warrants and stock options (continued)

* 750,000,000

common shares with a par value of $ 0.000001

per common share;

* 10,000,000 preferred shares with a par value of $ 0.000001

per preferred share

On July 19, 2019, the Company amended its articles of incorporation to change the total authorized capital and the par values which have been retrospectively applied in these amended and restated consolidated financial statements.

Issued and outstanding

In December 2017, the Company closed a private placement led by Red Cloud Klondike Strike Inc.

and including Haywood Securities Inc.

(collectively, the “Agents”) to raise gross proceeds of C$10,155,400 (the “Offering”).

Pursuant to the Offering, the Company issued 812,432 units (the "Units") at a price of CDN$12.50 per Unit.

Each Unit was comprised of one common share of the Company (a "Common Share") and one half of one transferable common share purchase warrant (a "Warrant"), each Warrant having a three-year life and entitling the holder thereof to acquire one Common Share at a price of C$20.00.

In August 2018, the Company closed a private placement, issuing 160,408 Units to Gemstone 102 Ltd.

7 unchanged sentences

under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101").

Given the urgent need to secure financing to meet the new lease obligations, Bunker’s Board approved an equity private placement of Units to be sold at C$0.75 per Unit with each Unit consisting of one common share and one common share purchase warrant.

On November 28, 2018, the Company closed on a total of 645,866 Units for gross proceeds of C$484,400 ($365,341) and incurring financing costs of $10,062, with each purchase warrant exercisable into a Common Share at C$1.00 per Common Share for a period of thirty-six months.

On June 27, 2019, the Company closed the first tranche ("First Tranche") of a non-brokered private placement, issuing 11,660,000 units ("June 2019 Unit") at a price of C$0.05 per June 2019 Unit for gross proceeds of C$583,000 ($436,608) and incurring financing costs of $19,640.

Each June 2019 Unit consists of one common share of the Company and one common share purchase warrant ("June 2019 Warrant").

Each whole June 2019 Warrant entitles the holder to acquire one common share at a price of C$0.25 per common share for a period of two years.

As a part of the First Tranche, Hummingbird Resources PLC ("Hummingbird") has acquired 2,660,000 June 2019 Units for C$133,000 ($100,000) which was applied to reduction of the principal amount owing under the convertible loan facility (see note 9

On August 1, 2019, the Company closed the second and final tranche ("Tranche Two") of the non-brokered private placement, issuing 6,042,954 units ("August 2019 Units") at C$0.05 per August 2019 Unit for gross proceeds of C$302,148 ($228,202) and incurring financing costs of $36,468.

Each August 2019 Unit consists of one common share of the Company and one common share purchase warrant, which entitles the holder to acquire one common share at a price of C$0.25 per common share for a period of two years.

The Company also issued 16,962,846 August 2019 Units to settle $640,556 of debt at a deemed price of C$0.09 based on the fair value of the shares issued.

As a result, the Company recorded resulting in loss on debt settlement of $858,495.

On August 23, 2019, the Company closed the first tranche (the "First Tranche") of the non-brokered private placement, issuing 27,966,002 common shares of the Company at C$0.05 per share for gross proceeds of C$1,398,300 ($1,049,974) and incurring financing costs of $28,847.

The Company also issued 2,033,998 common shares to settle $77,117 of debt at a deemed price of C$0.18 based on the fair value of the shares issued.

As a result, the Company recorded a loss on debt settlement of $197,800.

On August 30, 2019, the Company closed the second and final tranche (the "Second Tranche") of the non-brokered private placement, issuing 1,000,000 common shares at C$0.05 per share for gross proceeds of C$50,000 ($37,550).

On February 26, 2020, the Company closed a non-brokered private placement, issuing 2,991,073 common shares of the Company at C$0.56 per share for gross proceeds of C$1,675,000 ($1,256,854) and incurring financing costs of $ 95,763 (restated)

and 239,284 broker warrants.

Each broker warrant entitles the holder to acquire one common share at a price of C$0.70 per common share for a period of two years.

The Company also issued 696,428 common shares for $300,000 which was applied to reduce the principal amount owing under the convertible loan facility (see note 9

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

2 unchanged sentences

(Expressed in United States Dollars)

Capital stock, warrants and stock options (continued)

Capital stock, warrants and stock options (restated) (continued)

Issued and outstanding (continued)

On May 12, 2020, the Company closed a non-brokered private placement, issuing 107,143 common shares of the Company at C$0.56 per share for gross proceeds of C$60,000 ($44,671).

During the year ended June 30, 2020, the Company issued 1,403,200 June 2019 Units and 1,912,000 August 2019 Units at a deemed price of C$0.05 as finder's fees with a total value of C$165,760 ($125,180) to a shareholder of the Company.

As at June 30, 2020, the Company received cash proceeds of $549,363 for a private placement that closed subsequent to June 30, 2020 ( see note 19

For each financing, the Company has accounted for the warrants in accordance with ASC Topic 815.

Each June 2019 Unit consists of one common share of the Company and one common share purchase warrant ("June 2019 Warrant").

Each whole June 2019 Warrant entitles the holder to acquire one common share at a price of C$0.25 per common share for a period of two years.

For each financing, the Company has accounted for the warrant liability in accordance with ASC Topic 815.

The warrants are considered derivative instruments as they were issued in a currency other than the Company’s functional currency of the US dollar.

1 unchanged sentence

The change in fair value of the warrant is recorded in the consolidated statement of operations and comprehensive loss as a gain or loss and is estimated using the Binomial model.

The fair value of the warrant liabilities related to the various tranches of warrants issued during the period were estimated using the Binomial model to determine the fair value using the following assumptions on the day of issuance and as at June 30, 2020:

August 2019 issuance

The fair value of the warrant liabilities related to the various tranches of warrants issued during the year were estimated using the Binomial model to determine the fair value using the following assumptions on the day of issuance and as at June 30, 2019:

August 9, 2018

4 unchanged sentences

Change in derivative liability

$(11,163,694)

The warrant liabilities as a result of the December 2017, August 2018, November 2018, and June 2019 private placements were revalued as at June 30, 2020 and June 30, 2019 using the Binomial model and the following assumptions:

December 2017 issuance

November 28, 2018

June 30, 2019

Expected life

Risk free interest rate

Dividend yield

Change in derivative liability

June 27, 2019

June 30, 2019

Expected life

3 unchanged sentences

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

2 unchanged sentences

(Expressed in United States Dollars)

Capital stock, warrants and stock options (continued)

Capital stock, warrants and stock options (restated) (continued)

Issued and outstanding (continued)

August 2018 issuance

June 30, 2019

June 30, 2020

Expected life

Risk free interest rate

Dividend yield

Change in derivative liability

November 2018 issuance

June 30, 2019

June 30, 2020

Expected life

Risk free interest rate

Dividend yield

Change in derivative liability

June 2019 issuance

The warrant liability as a result of the December 2017 private placement was revalued as at June 30, 2019 and June 30, 2018 using the Binomial model and the following assumptions:

June 30, 2018

4 unchanged sentences

Change in derivative liability

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Capital stock, warrants and stock options (continued)

At June 30, 2019, there were 15,811,396 common shares issued and outstanding.

exercise price

1 unchanged sentence

Balance, June 30, 2018

Exercised (i)

Balance, June 30, 2019

(i) During the year ended June 30, 2020, 2,332,900 warrants were exercised at C$0.25 per warrant for gross proceeds of C$583,225 ($417,006).

In conjunction with the exercise of warrants, the Company recognized a change in derivative liability of $871,710.

As of June 30, 2019, the Company had 13,046,484 warrants outstanding, with exercise prices from C$0.25 to C$20.00, expiring from June 13, 2020 to November 28, 2021.

December 5, 2020

December 13, 2020

June 13, 2020

August 9, 2021

2 unchanged sentences

June 27, 2021

August 1, 2021

November 13, 2021

August 1, 2021

August 26, 2021

February 7, 2022

February 26, 2022

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

2 unchanged sentences

(Expressed in United States Dollars)

Capital stock, warrants and stock options (continued)

Capital stock, warrants and stock options (restated) (continued)

Stock options

The following table summarizes the stock option activity during the years ended June 30, 2020:

The following table summarizes the stock option activity during the periods ended June 30, 2019 and 2018:

stock options

1 unchanged sentence

Balance, June 30, 2017

Granted (i)(ii)

Balance, June 30, 2018

Granted (iii)

Balance, June 30, 2019

(i) On September 27, 2018, 43,750 fully-vested stock options were issued to a consultant to whom C$350,000 was due and payable and reflected in accrued liabilities at September 30, 2018.

(i) On December 6, 2017, 10,000 options were granted to a consultant with a five-year life and an exercise price of C$16.50.

These options vested immediately and, using the Black-Scholes option pricing method, had a value of $103,815, which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

(ii) On June 19, 2018, the Company granted incentive stock options to purchase up to an aggregate of 48,000 common shares, exercisable for 5 years at a strike price of C$8.50.

These options vested immediately and, using the Black-Scholes option pricing method, had a value of $206,489, which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

(iii) On September 27, 2018, 43,750 fully-vested stock options were issued to a consultant to whom C$350,000 was due and payable and reflected in accrued liabilities at September 30, 2018.

These options had a 5-year life and were exercisable at C$8.00 per share.

On October 3, 2018, these options were exercised in full, with consideration received being the liability already on the Company’s books, extinguishing the liability in full.

The grant date fair value of the options was estimated at $43,893.

The vesting of these options resulted in stock-based compensation of $nil for the year ended June 30, 2020 (year ended June 30, 2019 - $43,893), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

(ii) On October 24, 2019, 1,575,000 stock options were issued to directors and officers of the Company.

These options have a 5-year life and are exercisable at C$0.60 per share.

The grant date fair value of the stock options was estimated at $435,069.

The vesting of these options resulted in stock-based compensation of $309,211 for the year ended June 30, 2020 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

(iii) On April 20, 2020, 5,957,659 stock options were issued to certain directors of the Company.

Each stock option entitles the holder to acquire one common share of the Company at an exercise price of C$0.55.

The stock options vest in one fourth increments upon each anniversary of the grant date and expire in 5 years.

The grant date fair value of the stock options were estimated at $1,536,764.

The vesting of these options results in stock-based compensation of $162,855 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

The vesting of these options resulting in stock-based compensation of $43,893, which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

The fair value of these stock options was determined on the date of grant using the Black-Scholes valuation model, and using the following underlying assumptions:

2 unchanged sentences

Weighted average life

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Capital stock, warrants and stock options (continued)

Stock options (continued)

The following table reflects the actual stock options issued and outstanding as of June 30, 2019:

1 unchanged sentence

(exercisable)

fair value ($)

Restricted share units

Effective March 25, 2020, the Board of Directors approved a Restricted Share Unit ("RSU") Plan to grant RSUs

to its officers, directors, key employees and consultants.

The following table summarizes the RSU activity during the years ended June 30, 2020:

Unvested as at June 30, 2018 and June 30, 2019

Granted (i)(ii)

Unvested as at June 30, 2020

(i) On April 20, 2020, the Company granted 400,000 RSUs to a certain officer of the Company.

The RSUs vest in one fourth increments upon each anniversary of the grant date and expire in 5 years.

The vesting of these RSUs results in stock-based compensation of $17,384 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

(ii) On April 20, 2020, the Company granted 200,000 RSUs to a certain director of the Company.

The RSUs vest in one fourth increments upon each anniversary of the grant date and expire in 5 years.

The vesting of these RSUs results in stock-based compensation of $8,274 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

2 unchanged sentences

(Expressed in United States Dollars)

Deferred share units

Effective April 21, 2020, the Board of Directors approved a Deferred Share Unit ("DSU") Plan to grant DSUs to its directors.

The DSU Plan permits the eligible directors to defer receipt of all or a portion of their retainer or compensation until termination of their services and to receive such fees in the form of cash at that time.

Upon vesting of the DSUs or termination of service as a director, the director will be able to redeem DSUs based upon the then market price of the Company's common share on the date of redemption in exchange for cash.

The following table summarizes the DSU activity during the years ended June 30, 2020:

Unvested as at June 30, 2018 and June 30, 2019

Unvested as at June 30, 2020

(i) On April 21, 2020, the Company granted 7,500,000 DSUs.

The DSUs vest in one fourth increments upon each anniversary of the grant date and expire in 5 years.

The vesting of these DSUs results in stock-based compensation of $549,664 (year ended June 30, 2019 - $nil), which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss.

Commitments and contingencies (restated)

As stipulated by the agreements with Placer Mining as described in note 8

, the Company is required to make monthly payment of $60,000 for care and maintenance and a lease extension fee of $60,000.

Effective June 1, 2017, the Company has a lease agreement for office space at 401 Bay Street, Suite 2702, Toronto, Ontario, Canada, M5H 2Y4.

The 5-year lease provides for a monthly gross rent of C$29,005 for the first two years, increasing to C$29,545 per month for years three through five.

The monthly rental expenses are offset by rental income obtained through a series of subleases held by the Company.

As stipulated by the agreements with Placer Mining as described in note 7, the Company is required to make monthly payment of $60,000 for care and maintenance and a lease extension fee of $60,000.

Including the previously accrued payments, a total of $1,373,000 is payable until the Company decides to acquire the mine at which time these payments will be waived.

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The Company is now engaged with the EPA to amend and defer these payments.

The Company has entered into a lease agreement which expires in May 2022.

Monthly rental expenses are approximately C$26,000 and are offset by rental income obtained through a series of subleases held by the Company.

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Income taxes (restated)

2 unchanged sentences

federal and state income tax rates of 26.9% (2018 - 26.9%) to pretax loss from operations for the years ended June 30, 2019 and 2018 due to the following:

Loss before income taxes (as restated)

Loss before income taxes

Expected income tax recovery

Tax rate changes and other adjustments

Other permanent difference

6 unchanged sentences

Unrealized foreign exchange loss

Deferred tax asset:

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2019 and 2018

(Expressed in United States Dollars)

Income taxes (restated) (continued)

Deferred tax assets:

Non-capital losses carried forward

Lease liabilities

Deferred tax liabilities:

Convertible debt

Right of use assets and lease obligations

Net deferred tax asset

7 unchanged sentences

The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended June 30, 2019, 2018, 2017, 2016, 2015, 2014, 2013 and 2012.

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Related party transactions

During the year ended June 30, 2020, John Ryan (Director and former CEO) billed $51,500, Wayne Parsons (Director and CFO) billed $136,045, Hugh Aird (Director) billed $9,774, Richard Williams (Director and Executive Chairman) billed $134,927, and Sam Ash (President and CEO) billed $60,000 for services to the Company.

During the year ended June 30, 2019, Julio DiGirolamo (Former CFO) billed $70,000, Howard Crosby (Former director and Former Executive Vice President) billed $20,000, and John Ryan (Director and Interim CEO) billed $50,000 for services to the Company.

Julio DiGirolamo resigned his position in May 2019 and Mr.

Crosby resigned his positions in November 2018.

Through November 2017, each of Messrs.

Bruce Reid (Former CEO), Julio DiGirolamo (Former CFO), Howard Crosby (Former Executive Vice President) and John Ryan (Director and current Interim CEO) received $5,000 per month for services to the Company.

Commencing December 1, 2017, commensurate with the increased activities in the Company, Messrs.

Reid and DiGirolamo’s pay increased to $20,000 and $15,000 per month, respectively.

Commencing September 2018, Mr.

DiGirolamo agreed to a reduced fee for services.

In early December 2017, the Board approved and ratified compensation to Mr.

Reid for unaccrued and unpaid salary and bonus, including for risk-capital sums advanced by Mr.

Reid to the Company in order that the Company could complete many of its obligations and initiatives during 2017.

The payment, totaling $500,000 was accrued at December 31, 2017 and was paid in January 2018.

The Company also incurred $200,000 of debt issue costs to Wayne Parsons (CFO) for extension of the Hummingbird loan, which was settled by shares subsequent to year end.

At June 30, 2019, $37,547 is owed to Mr.

Williams and $60,000 is owed to Mr.

Ash with all amounts included in accounts payable and accrued liabilities.

Financial instruments

The Company measured its DSU liability at fair value on recurring basis using level 1 inputs and derivative warrant liabilities at fair value on recurring basis using level 3 inputs.

There were no transfers of financial instruments between levels 1, 2, and 3 during the years ended June 30, 2020 and 2019.

Foreign currency risk

Foreign currency risk is the risk that changes the rates of exchange on foreign currencies will impact the financial position of cash flows of the Company.

The Company is exposed to foreign currency risks in relation to certain activities that are to be settled in Canadian dollar.

Management monitors its foreign currency exposure regularly to minimize the risk of an adverse impact on its cash flows.

Concentration of credit risk

Concentration of credit risk is the risk of loss in the event that certain counterparties are unable to fulfill its obligations to the Company.

The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents.

The Company places its cash and cash equivalents with financial institutions of high credit worthiness.

At times, its cash equivalents with a particular financial institution may exceed any applicable government insurance limits.

The Company’s management also routinely assesses the financial strength and credit worthiness of any parties to which it extends funds and as such, it believes that any associated credit risk exposures are limited.

Liquidity risk

Liquidity risk is the risk that the Company's consolidated cash flows from operations will not be sufficient for the Company to continue operating and discharge its liabilities.

The Company is exposed to liquidity risk as its continued operation is dependent upon its ability to obtain financing, either in the form of debt or equity, or achieving profitable operations in order to satisfy its liabilities as they come due.

Bunker Hill Mining Corp.

Amended and Restated

Notes to Consolidated Financial Statements

Years Ended June 30, 2020 and 2019

(Expressed in United States Dollars)

Subsequent events (restated)

On July 15, 2020 the Company has entered into a loan agreement with an arm’s length third party for an unsecured loan facility of $1,200,000 (the “July 2020 Loan”) due August 31, 2020.

As consideration for the July 2020 Loan, the Company has agreed to pay the lender a one-time origination fee of $360,000.

The Company repaid the July 2020 Loan in full on maturity.

On August 12, 2020, the Company announced that it has extended the lease with Placer Mining for further 18 months for a $150,000 extension fee, in addition to the 6 month extension available for a $60,000 extension fee (see note 8).

This extension expires on August 1, 2022.

On August 14, 2020, the Company closed the first tranche of the brokered private placement of units of the Company ("August 2020 Offering"), issuing 35,212,142 units of the Company (“August 2020 Units”) at C$0.35 per August 2020 Unit for gross proceeds of $9,301,321 (C$12,324,250).

Each August 2020 Unit consisted of one common share of the Company and one common share purchase warrant of the Company (“August 2020 Warrant”), which entitles the holder to acquire a common share of the Company at C$0.50 per common share of the Company until August 31, 2023.

In connection with the first tranche, the Company incurred financing costs of $641,493 (C$739,455) and issued 2,112,729 compensation options ("August 2020 Compensation Options").

Each compensation option is exercisable into one August 2020 Unit at an exercise price of C$0.35 until August 31, 2023.

On August 25, 2020, the Company closed the second tranche of the August 2020 Offering, issuing 20,866,292 August 2020 Units at C$0.35 per August 2020 Unit for gross proceeds of $5,497,453 (C$7,303,202).

In connection with the second tranche, the Company incurred financing costs of $292,377 (C$386,376) and issued 1,127,178 August 2020 Compensation Options.

The Company also issued 2,205,714 August 2020 Units to settle $585,115 (C$772,000) of debt.

On September 30, 2020, 200,000 stock options were issued to a consultant.

Each stock option entitles the holder to acquire one common share of the Company at an exercise price of C$0.60.

The stock options vest 50% at 6 months and 50% at 12 months from the grant date and expire in 3 years.

On October 9, 2020, the Company settled the full balance of the convertible loan payable to Hummingbird by issuing 5,572,980 shares of the Company.

DiGirolamo, $23,032 to Mr.

Crosby, $49,399 to Mr.

Ryan, and $200,000 to Mr.

Parsons, all amounts included in accounts payable and accrued liabilities.

Bruce Reid (Former CEO) earned $29,287 for consulting services rendered and including reimbursed expenses of $4,287, which amount is included in accounts payable at June 30, 2019.

Subsequent events

The Company also issued 16,962,846 August 2019 Units to settle $640,556 of debt at a deemed price of C$0.09 based on the fair value of the shares issued.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

2 unchanged sentences

(Expressed in United States Dollars)

Subsequent events (continued)

The Company also issued 2,033,998 common shares to settle $77,117 of debt at a deemed price of C$0.18 based on the fair value of the shares issued.

Quarterly financial data (unaudited)

The Company restated its consolidated financial statements as of and for the quarterly periods ended September 30, 2019 and 2018, December 31, 2019 and 2018, and March 31, 2020 and 2019 to correct misstatements, as discussed in note 5 describing the restatement of annual periods.

The Company restated its consolidated financial statements as of and for the quarterly periods ended September 30, 2018, December 31, 2018 and 2017, and March 31, 2019 and 2018 to correct misstatements, as discussed in note 5 describing the restatement of annual periods.

The misstatements did not impact the quarterly period ended September 30, 2017.

The following tables summarize the impact of the restatement on the Company's unaudited condensed interim consolidated financial statements.

Impact to Condensed Interim Consolidated Statements of Loss and Comprehensive Loss

Three months ended September 30, 2018

As previously

Total operating expense and loss from operations

$ (1,611,333)

$ (1,827,955)

Loss before income tax and net loss and comprehensive loss

for the period

Net loss per common share - basic and fully diluted (*)

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

Three months ended December 31, 2017

As previously

Total operating expense and loss from operations

Lease payments and exploration

Total operating expenses and loss from operations

$ (3,467,459)

$ (3,509,846)

Loss before income tax and net loss and comprehensive loss for the period

3 unchanged sentences

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

Six months ended December 31, 2018

As previously

Total operating expense and loss from operations

Six months ended December 31, 2017

Lease payments and exploration

Total operating expenses and loss from operations

$ (3,875,739)

5 unchanged sentences

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

Three months ended March 31, 2019

As previously

Total operating expense and loss from operations

Three months ended March 31, 2018

Lease payments and exploration

Loss from operations

$ (1,618,052)

$ (1,769,489)

Loss before income tax and net loss and comprehensive lossfor the period

Loss before income tax and net loss and comprehensive loss for the period

$ (1,583,056)

$ (1,734,493)

Net loss per common share - basic and fully diluted (*)

Net income (loss) per common share - basic and fully diluted (*)

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

3 unchanged sentences

Quarterly financial data (unaudited) (continued)

Nine months ended March 31, 2019

As previously

Total operating expense and loss from operations

Nine months ended March 31, 2018

Lease payments and exploration

Loss from operations

$ (5,493,791)

$ (5,687,615)

Loss before income tax and net loss and comprehensive loss for the period

Loss before income tax and net loss and comprehensive loss

for the period

$ (4,977,252)

2 unchanged sentences

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

Three months ended September 30, 2019

As previously

Loss from operations

Three months ended September 30, 2018

Total operating expense and loss from operations

$ (1,611,333)

2 unchanged sentences

for the period

$ (4,086,289)

$ (4,236,700)

Net loss per common share - basic and fully diluted (*)

Three months ended December 31, 2019

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

As previously

Loss from operations

Three months ended December 31, 2018

Total operating expense and loss from operations

$ (3,393,071)

5 unchanged sentences

Net loss per common share - basic and fully diluted (*)

Six months ended December 31, 2019

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

As previously

Loss from operations

Six months ended December 31, 2018

Total operating expense and loss from operations

$ (5,004,404)

$ (5,405,973)

Loss before income tax and net loss and comprehensive loss for the period

Loss before income tax and net loss and comprehensive loss

for the period

$ (3,926,783)

1 unchanged sentence

Net loss per common share - basic and fully diluted (*)

Three months ended March 31, 2020

As previously

Loss from operations

$ (1,177,553)

$ (1,362,960)

Income (loss) before income tax and net income (loss)

and comprehensive income (loss) for the period

Net income (loss) per common share - basic and fully diluted

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

3 unchanged sentences

Quarterly financial data (unaudited) (continued)

Nine months ended March 31, 2020

As previously

Loss from operations

Three months ended March 31, 2019

Total operating expense and loss from operations

$ (1,239,839)

$ (1,390,857)

Income (loss) before income tax and net income (loss)and comprehensive income (loss) for the period

Loss before income tax and net loss and comprehensive loss for the period

$ (1,826,405)

1 unchanged sentence

Net loss per common share - basic and fully diluted (*)

Impact to Condensed Interim Consolidated Balance Sheets

As at September 30, 2018

As previously

Accounts payable

Total current liabilities

Total liabilities

Deficit accumulated during exploration stage

$(24,250,066)

$(25,013,420)

Total shareholders' equity (deficiency)

As at December 31, 2018

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

As previously

Accounts payable

Total current liabilities

Total liabilities

Deficit accumulated during exploration stage

Nine months ended March 31, 2019

Total operating expense and loss from operations

$ (6,244,243)

$ (6,796,830)

Total shareholders' deficiency

Loss before income tax and net loss and comprehensive loss for the period

$ (5,753,188)

$ (6,305,775)

As at March 31, 2019

Net loss per common share - basic and fully diluted (*)

(*) Adjusted for 10-to-1 share consolidation on May 23, 2019.

Impact to Condensed Interim Consolidated Balance Sheets

As previously

As at December 31, 2017

Accounts payable

4 unchanged sentences

$ (21,880,285)

$ (30,466,083)

Total shareholders' deficiency

$ (5,399,163)

$ (1,099,319)

$ (6,498,482)

As at September 30, 2019

Total shareholders' equity

As previously

As at March 31, 2018

Accounts payable

4 unchanged sentences

$ (23,614,778)

$ (36,839,328)

Total shareholders' deficiency

$ (8,596,756)

$ (1,401,638)

$ (9,998,394)

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

3 unchanged sentences

Quarterly financial data (unaudited) (continued)

As at December 31, 2019

As previously

As at September 30, 2018

Accounts payable

Accrued liabilities

Total current liabilities

3 unchanged sentences

$ (25,013,420)

Total shareholders' equity (deficiency)

$ (1,404,816)

Total shareholders' deficiency

As previously

As at December 31, 2018

Accounts payable

Total current liabilities

Total liabilities

Deficit accumulated during exploration stage

$ (27,540,359)

$ (28,488,660)

Total shareholders' deficiency

$ (3,572,758)

As at March 31, 2020

$ (4,521,059)

As previously

As at March 31, 2019

Accounts payable

Accrued liabilities

Total current liabilities

Total liabilities

Additional paid-in-capital

Deficit accumulated during exploration stage

7 unchanged sentences

Impact to Condensed Interim Consolidated Statements of Cash Flows

Three months ended September 30, 2018

As previously

Net loss for the period

Changes in operating assets and liabilities:

Accounts payable

Six months ended December 31, 2017

As previously

Net loss for the period

3 unchanged sentences

Accounts payable

Nine months ended March 31, 2019

As previously

Nine months ended March 31, 2018

Net loss for the period

4 unchanged sentences

Bunker Hill Mining Corp.

(Formerly Liberty Silver Corp.)

Amended and Restated

3 unchanged sentences

Quarterly financial data (unaudited) (continued)

Three months ended September 30, 2019

As previously

Three months ended September 30, 2018

Net loss for the period

$ (4,086,289)

$ (4,236,700)

Changes in operating assets and liabilities:

Accounts payable

Six months ended December 31, 2019

As previously

Six months ended December 31, 2018

Net loss for the period

3 unchanged sentences

Accounts payable

Accrued liabilities

Nine months ended March 31, 2020

As previously

Nine months ended March 31, 2019

Net loss for the period

3 unchanged sentences

Accounts payable

Accrued liabilities

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K/A

Item 8. Financial Statements and Supplementary Data