Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

Reconciliation of financial position as at January 1, 2021 (date of transition to IFRS)

	Notes			US GAAP			Effect of Transition to IFRS			IFRS
ASSETS
Current assets:
Cash and cash equivalents				$	202,712		$	-		$	202,712
Account receivables					773,311			-			773,311
Prepaid expenses and deposits					24,302			-			24,302
Total current assets					1,000,325			-			1,000,325
Oil and gas properties, net		(1), (5)			5,346,916			(3,122,443	)		2,224,743
Exploration and evaluation assets		(1	)		-			3,122,443			3,122,443
Property and equipment, net					128,257			-			128,257
Restricted cash					11,763			-			11,763
Total assets				$	6,487,261		$	-		$	6,487,261
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities				$	1,496,510		$	-		$	1,496,510
Loans payable - current					549,424			-			549,424
Lease liability - current					12,116			-			12,116
Total current liabilities					2,058,050			-			2,058,050
Asset retirement obligation		(2	)		4,010,624			5,344,798			9,355,422
Loans payable					17,730			-			17,730
Convertible debt					11,027			-			11,027
Derivative liability					1,804,572			-			1,804,572
Lease liability					27,693			-			27,693
Total liabilities					7,929,696			5,344,798			13,274,494
Stockholders’ deficiency:
Common stock					1,253			-			1,253
Additional paid-in capital		(3	)		27,508,468			(27,508,468	)		-
Share premium		(3	)					26,331,369			26,331,369
Stock subscriptions and stock to be issued					15,342			-			15,342
Warrant and option reserve		(3	)		-			1,177,099			1,177,099
Accumulated other comprehensive loss					(490,172	)		-			(490,172	)
Notes and amounts receivable for equity issued
Shares to be cancelled
Obligation to Issue Shares
Accumulated deficit					(28,477,326	)		(5,344,798	)		(33,822,124	)
Total stockholders’ deficiency					(1,442,435	)		(5,344,798	)		(6,787,233	)
Total liabilities and stockholders’ deficiency				$	6,487,261		$	-		$	6,487,261

TRILLION ENERGY INTERNATIONAL INC.

Notes to the Consolidated Interim Financial Statements

For the nine months ended September 30, 2022 and 2021

(Expressed in U.S. dollars)

(Unaudited)

2.	Summary of Significant Accounting Policies (continued)

Reconciliation of financial position as at December 31, 2021

	Notes			US GAAP			Effect of Transition to IFRS			IFRS
ASSETS
Current assets:
Cash and cash equivalents				$	1,026,990		$	-		$	1,026,990
Accounts receivable					709,805			-			709,805
Prepaid expenses and deposits					95,503			-			95,503
Total current assets					1,832,298			-			1,832,298
Oil and gas properties, net		(1), (2), (5)			5,172,943			(3,752,330	)		1,420,613
Exploration and evaluation assets		(1	)		-			3,116,146			3,116,146
Property and equipment, net					147,134			-			147,134
Restricted cash					5,438			-			5,438
Total assets				$	7,157,813		$	(636,184	)	$	6,521,629
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities				$	852,481		$	-		$	852,481
Loans payable					630,534			-			630,534
Lease liability					6,732			-			6,732
Total current liabilities					1,489,747			-			1,489,747
Asset retirement obligation		(2	)		4,426,978			4,566,130			8,993,108
Loans payable					18,513			-			18,513
Derivative liability					472,899			-			472,899
Lease liability					8,592			-			8,592
Total liabilities					6,416,729			4,566,130			10,982,859
Stockholders’ equity (deficiency):
Common stock					1,828			-			1,828
Additional paid-in capital		(3), (4)			33,295,413			(33,295,413	)		-
Share premium		(3), (4)			-			32,175,293			32,175,293
Notes and amounts receivable for equity issued					(1,193,641	)		-			(1,193,641	)
Warrant and option reserve		(3	)		-			1,040,779			1,040,779
Shares to be cancelled					5,323			-			5,323
Obligation to Issue Shares					7,450			-			7,450
Accumulated other comprehensive loss					(847,412	)		-			(847,412	)
Accumulated deficit					(30,527,877	)		(5,122,973	)		(35,650,850	)
Total stockholders’ equity (deficiency)					741,084			(5,202,314	)		(4,461,230	)
Total liabilities and stockholders’ equity (deficiency)				$	7,157,813		$	(636,184	)	$	6,521,629

TRILLION ENERGY INTERNATIONAL INC.

Notes to the Consolidated Interim Financial Statements

For the nine months ended September 30, 2022 and 2021

(Expressed in U.S. dollars)

(Unaudited)

2.	Summary of Significant Accounting Policies (continued)

Reconciliation of operation results for the nine months ended September 30, 2021

	Notes			US GAAP			Effect of Transition to IFRS			IFRS
Revenue
Oil and natural gas sales				$	2,837,024		$	-		$	2,837,024
Cost and expenses
Production					2,008,383			-			2,008,383
Depletion		(5	)		191,263			151,895			343,158
Depreciation					20,790			-			20,790
Accretion of asset retirement obligation		(2	)		308,379			(239,515	)		68,864
Investor relations					794,295						794,295
Stock based compensation					161,291			-			161,291
General and administrative					1,540,138			-			1,540,138
Total expenses					5,024,539			(87,620	)		4,936,919
Loss before other income (expenses)					(2,187,515	)		87,620			(2,099,895	)
Other income (expenses)
Interest expense					(119,871	)		-			(119,871	)
Interest income					27,450			-			27,450
Finance cost					(137,884	)		-			(137,884	)
Foreign exchange loss					(13,258	)		-			(13,258	)
Other expense					(40	)		-			(40	)
Loss on debt extinguishment		(4	)		(238,724	)		79,341			(159,383	)
Change in fair value of derivative liability					507,446			-			507,446
Total other expenses					25,119			79,341			104,460
Net loss for the period				$	(2,162,396	)	$	166,961		$	(1,995,435	)

Loss per share				$	(0.01	)	$	-		$	(0.01	)
Weighted average number of shares outstanding					150,439,108			-			150,439,108

Other comprehensive loss
Foreign currency translation adjustments				$	(119,650	)	$	-		$	(119,650	)
Comprehensive loss				$	(2,282,046	)	$	166,961		$	(2,115,085	)