Avrupa Interim Financial Statements

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)

Portugal

Licenses have varying required work commitments and carry a 3% Net Smelter Return (“NSR”) payable to the government of Portugal.

Alvalade:

On November 19, 2019, the Company and MAEPA (collectively the “Company”) and Minas de Aguas Teñidas, S.A. (“Sandfire MATSA” or “MATSA”) and its wholly-owned subsidiary Sandfire Mineira Portugal,Unipessoal Lda. (“SMP”), formerly “EUL”, collectively “Sandfire MATSA” entered into an Earn-In Joint Venture Agreement (the “Agreement”) with respect to the Alvalade Project. Pursuant to the Agreement, PorMining, Unipessoal Lda. (“PorMining”) was incorporated on December 17, 2019 to hold assets and develop mineral rights (both as defined) and SMP can earn up to an 85% interest in PorMining. The earning of this interest, subsequent arrangements that may be entered into to explore the assets and, if warranted, the development of one or more projects are referred to as the “Transaction”.

On March 27, 2020, MAEPA and SMP entered into a Quota Transfer Agreement pursuant to which MAEPA split its 100% interest in the share capital of PorMining into two quotas, representing 51% and 49% of the company’s share capital, and sold the 51% quota to SMP for the nominal value of €510.

On March 27, 2020, the Company, MAEPA, Sandfire MATSA and SMP entered into the PorMining Lda. Shareholders’ Agreement (the “Agreement”). Pursuant to the Agreement:

·PorMining has five directors. From the effective date until the second option exercise date, three will be nominated by SMP and two by MAEPA. Thereafter, four will be nominated by SMP and one will be nominated by MAEPA. Upon the occurrence of the 51/49 Phase and thereafter, SMP is entitled to nominate three directors and MAEPA two directors. In the event of dilution of the interest of SMP or MAEPA, each will be entitled to proportional representation (as described) equal to its then interest;

·In the event that SMP and/or MAEPA wish to sell or transfer their shares in PorMining, PorMining has a right of first refusal to purchase all or a portion of the shares. To the extent that PorMining does not exercise its right of first refusal to all the shares, each of SMP and/or MAEPA has a right of first refusal; and

·The Agreement will terminate at such time as there is a final decision regarding the dissolution and liquidation of PorMining, the parties mutually agree on the termination of the Agreement or as provided for under the Earn-In Joint Venture Agreement.

The effective date of the Transaction is the date that PorMining receives (received on June 15, 2020) the mineral rights in its name from the General Directorate of Energy and Geology of Portugal (“DGEG”). The Transaction is comprised of the following phases:

·Phase I – First Option;

·Phase II – Second Option;

·51/49 Phase; and

·Phase III – Development and Operation.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)

Alvalade: (Continued)

Phase I – First Option

During Phase I, MAEPA granted SMP the sole and exclusive right to hold an undivided 51% interest in PorMining (the first option) for at least three years from the effective date or the issue (issued on June 15, 2020) of the Experimental Exploitation License (the “EEL”) by DGEG to PorMining. SMP’s right to maintain its 51% interest is conditional upon Sandfire MATSA:

·Paying €400,000 to the Company on or before the effective date (€200,000 was received in December 2019 and the remaining €200,000 was received in June 2020);

·Funding or providing the necessary financial instrument to cover the guarantee, which will be returned to Sandfire MATSA following the release of the guarantee by DGEG (funded €100,000 in June 2020); and

·Funding expenditures (the first option expenditures) on the mineral rights in an aggregate amount of €2,400,000 (€1,200,000 within the first 12 months following the effective date [met] and €1,200,000 in the next 24 months [met]) on or before three years from the effective date or the issue of the EEL.

Effectively in March 2022, Sandfire MATSA completed the Phase I First Option by funding a total of €2,500,000 on the Alvalade project, including the €100,000 guarantee with DGEG, and SMP unconditionally earned the 51% interest in PorMining.

During Phase I, MAEPA acted as the operator of the mineral rights with PorMining paying MAEPA an operator’s fee equal to €100,000 per year, paid monthly starting June 16, 2020, funded by Sandfire MATSA and which formed part of the first option expenditures.

In all other phases, PorMining will be the operator unless it appoints another person to act as operator. The operator is responsible for developing and submitting work programs to the technical committee or the board of directors for consideration and approval and to implement work programs when approved according to the approved budget. The technical committee is comprised of two representatives from each of SMP and MAEPA and will be in effect until the first option exercise date. Thereafter, the board of directors will make all decisions with respect to the mineral rights.

Upon the completion of Phase I, Sandfire MATSA and PorMining continued with having MAEPA acting as the operator and PorMining continued paying the operator’s fee. During the nine months ended September 30, 2024, MAEPA received €75,000 ($110,880) (2023 - €75,000 ($109,320)) operator’s fee where the fund was included in reimbursements from optionee.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)

Alvalade: (Continued)

Phase II – Second Option

Phase II commenced on the first option exercise date and continues until the first to occur of the second option exercise date and the termination of the second option. On the first option exercise date, the Company granted SMP the sole and exclusive right and option to acquire an additional 34% (for an aggregate 85% interest) in PorMining (the second option). SMP’s right to exercise the second option is conditional on Sandfire MATSA satisfying the second option conditions as follows:

·Preparing, funding and delivering to PorMining a feasibility study on the mineral rights within five years of the issuance of the EEL or, provided that DGEG grants an extension to all or part of the EEL, the time period for when the second option conditions must be met shall be extended to a maximum of two additional years, for a total of seven years after the issuance of the original EEL;

·Making proper application for a mining license before the end of the term of the EEL; and

·Making all progress payments to Antofagasta as set out in the Debt Cancellation Agreement dated June 12, 2017 as follows:

oUS$250,000 within 60 days after the date of a news release announcing a NI 43-101 compliant technical report having been completed and with results as defined;

oUS$500,000 within 60 days after the date of a news release announcing completion of a feasibility study with results as defined;

oUS$500,000 on the one-year anniversary of the date of the news release announcing the feasibility study noted above;

oUS$750,000 within 60 days of the commencement of commercial production;

oUS$750,000 on the one-year anniversary of commencement of commercial production;

oUS$750,000 on the second anniversary of commencement of commercial production; and

oUS$750,000 on the third anniversary of commencement of commercial production.

The satisfaction of the second option conditions is solely at Sandfire MATSA’s discretion and Sandfire MATSA may elect to terminate the second option at any time by delivering notice (the second option termination notice) to the Company. If the second option is terminated, SMP will be entitled to retain its 51% interest in PorMining, plus an additional 1% interest for every €735,294 of expenditures funded during Phase II and the 51/49 Phase will commence.

Upon Sandfire MATSA satisfying the second option conditions, SMP automatically earns an additional 34% interest in PorMining for an aggregate interest of 85%.

During Phase II, SMP will fund 100% of all maintenance payments and approved work programs.

As of September 30, 2024, Sandfire MATSA funded €4,359,000 on the Alvalade project Phase II – Second Option. Subsequently, Sandfire MATSA funded another €622,000 on the Alvalade project in Phase II.

51/49 Phase

The 51/49 Phase commences on termination of the second option and continues until the deemed conversion of the interest of a party to a royalty. During the 51/49 Phase, PorMining will remain the operator subject to the terms of the Agreement and the shareholders’ agreement and the activities of the parties with respect to the mineral rights will continue to be governed by the shareholder’s agreement.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)

Alvalade: (Continued)

If at any time after the 51/49 Phase has commenced SMP’s interest is reduced to below 10% as a result of dilution calculations, its interest will be deemed to be converted to a 1.5% royalty, which royalty shall only be payable up to a maximum total payment of €13,000,000 after which it will no longer be applicable. Upon conversion to the royalty, SMP will have no further rights or interest in respect of the assets under the Agreement or the shareholders’ agreement except for the royalty and the termination provisions apply.

If at any time during the 51/49 Phase MAEPA’s interest is reduced to 15% as a result of dilution calculations, then its interest will be deemed to be converted to a 15% “carried interest” following which MAEPA will not be required to contribute to any further work programs and will not be subject to any further dilution until such time as a feasibility study has been prepared, at which point Phase III will have been deemed to have commenced and MAEPA will have to sell the option.

During the 51/49 Phase, the parties will fund the maintenance payments and contribute to the costs of any approved work and/or development programs in proportion to their proportionate share.

Phase III – Development and Operation

Phase III commences on the second option exercise date and continues until the deemed conversion of the interest of a party to a royalty. Within 90 days of the commencement of Phase III, the Company will transfer its 15% interest in PorMining to Sandfire MATSA in consideration for €10,000,000 to be paid as follows:

·€3,000,000 upon a construction decision being made by PorMining and all permits having been received from DGEG;

·€3,000,000 upon commencement of commercial production; and

·€4,000,000 upon the first anniversary of commencement of commercial production.

During Phase III, the parties will contribute their respective pro rata share of all approved work programs and budgets.

If at any time after Phase III has commenced MAEPA’s interest is reduced to below 10% as a result of dilution calculations, its interest will be deemed to be converted to a 1.5% royalty as described above for SMP.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)

Kosovo

Slivova (formerly Slivovo) license:

Byrnecut International Limited (“Byrnecut”) earned an 85% interest in the Slivovo property after forwarding $2,834,986 (€2,000,000) for the Slivovo property to the Company and completing a Preliminary Feasibility Study (“PFS”) by April 10, 2017. Byrnecut and the Company set up a joint venture entity known as Peshter Mining J.S.C. (“Peshter Mining”) to reflect the 85:15 ownership and transferred the Slivovo license into Peshter Mining with Byrnecut being the operator. Avrupa’s interest in Peshter Mining was subsequently diluted to below 10%, resulting in the Company’s interest in Peshter Mining being converted into a 2% Net Smelter Return.

On December 31, 2019, the Company wrote down its interest in Slivovo by $143,154 to $1 as the Company was in negotiations with the Kosovo Mining Bureau, along with Byrnecut and Peshter Mining as to how to possibly extend the life of this license. During fiscal 2020, Byrnecut decided not to proceed with advancing Slivovo. Rather than dropping the license and potentially allowing a third party to stake the open land, Innomatik Exploration Kosovo LLC (“IEK”), Byrnecut and Peshter Mining entered into a binding term sheet (the “TS”) whereby the parties set out the terms on which Peshter Mining would surrender the existing tenements, thereby enabling IEK to apply, as sole beneficial owner, for one or more tenements over the entirety of the tenement area. The license was officially released back to the government. As of December 31, 2020, the Company wrote off $1. On November 2, 2023, Peshter Mining was deregistered and dissolved.

In March 2021, the Company incorporated a wholly-owned subsidiary, AVU Kosova LLC, to apply for a new Slivovo exploration permit. In May 2022, the Company received a seven-year exploration permit known as the Slivova license.

As consideration for Byrnecut ensuring that Peshter Mining complies with its obligations under the TS, IEK must pay to Byrnecut milestone cash payments totaling €375,000 and milestone gold payments totaling 850 troy ounces of gold (together known as “Success Payments”) as follows:

Cash

·€125,000 within 30 days of the first to occur of the completion of a positive bankable feasibility study or the board of directors of IEK making a decision to proceed with the development of a commercial mining operation in respect of all or any part of the tenement area;

·€125,000 within 30 days of issue of a mining license in respect of all or any party of the tenement area; and

·€125,000 within 30 days of commencement of construction of a mine within the tenement area.

Gold

·100 troy ounces within 30 days of commencement of commercial production (“CCP”);

·175 troy ounces within 30 days of the one-year anniversary of CCP;

·250 troy ounces within 30 days of the two-year anniversary of CCP; and

·325 troy ounces within 30 days of the three-year anniversary of CCP.

On August 24, 2022, and subsequently confirmed via a Definitive Agreement (the “Agreement”) on May 2, 2023, the Company and Western Tethyan Resources (“WTR”) entered into an agreement in respect of the Slivova project. WTR is a private exploration company and is 75% owned by London AIM-listed Ariana Resources PLC. Pursuant to the Agreement, WTR can earn up to an 85% interest in the Slivova project.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

5.EXPLORATION AND EVALUATION ASSETS AND MINERAL EXPLORATION EXPENSES (Continued)

Kosovo (Continued)

Slivova (formerly Slivovo) license: (Continued)

The terms of the Agreement are as follows:

Date/Period	Expenditures	Option Payment	Earn-in %
On September 1, 2022 (Effective Date)	None	€35,000 (received)
On or before March 1, 2023	€100,000 (spent)	None
On March 1, 2023	None	€35,000 (received)
On or before September 1, 2023	€150,000 (spent)	€30,000 (received)
On or before September 1, 2024 *	€650,000	None	51% (Stage 1)
On or before September 1, 2025	€1,000,000	None	75% (Stage 2)

*In June 2024, the Agreement was amended and the completion date for the expenditure of €650,000 was extended from September 1, 2024 to December 31, 2024.

During Stage 1, the expenditures will be in respect of payments for exploration, drilling, baseline environmental and social surveys, and other payments to landowners.

During Stage 2, the expenditures will be in respect of payments for a NI 43-101 resource estimation, commencement of full Environmental Impact Statement (“EIS”), and other exploration expenses.

During fourth and fifth year from the Effective Date (Stage 3), WTR must complete the EIS, Feasibility Study (“FS”), and Mining License application to earn-in 85% interest in the project.

During Stage 4, WTR will complete the Success Payments to the previous JV partner, Byrnecut (see “TS” above).

During Stage 5, the Company will participate in the mine build or dilute to 1% Net Smelter Return (“NSR”).

	September 30, 2024	December 31, 2023
Due from optionee
Alvalade – PorMining	$ 13,358	$ 18,409
Slivova – WTR	9,206	-
	$ 22,564	$ 18,409

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

6. PROPERTY DEPOSITS / TAX DEPOSITS

Tax deposits:

In November 2018, MAEPA paid €56,505 ($88,201) in lieu of bank guarantees of €77,918 ($121,625) to the Directora de Finanças de Braga in Portugal. This amount was comprised of €51,920 ($81,044) in respect of stamp tax and €4,585 ($7,157) in respect of VAT. The stamp tax portion relates to the interpretation that intercompany advances received by MAEPA are financing loans and, accordingly, are subject to stamp tax. The VAT portion relates to certain invoices for vehicle usage and construction services. As of December 31, 2019, the Company estimated that the judicial review process would take approximately one year for the VAT claim and three to five years for the stamp tax claim and that the likelihood of success for each was 50%. As a result, tax deposits were written down by $41,200 (€28,252) during the year ended December 31, 2019. During 2020, the judicial review ruled that approximately €1,971 VAT remained to be paid while the rest were annulled. The Company accepted this ruling. The Company is still waiting for a trial date regarding the stamp tax and it is estimated that the process can take another three to four years.

7. ADVANCE AND INVESTMENT IN AKKERMAN FINLAND OY

On February 25, 2022, the Company signed a Share Purchase Agreement with Akkerman Exploration B.V. (“AEbv”) to acquire up to a 100% ownership interest in Akkerman Finland OY (“AFOy”), an entity holding certain mineral rights (the “Property”) in Finland.

The acquisition terms are as follow:

·The Company can earn an initial 49% interest in AFOy in Stage One by issuing 1,470,000 common shares (issued at a value of $95,550), paying €150,000 ($211,800) into AFOy for the purpose of paying existing shareholder loans (paid), and depositing €200,000 ($282,400) into a dedicated account (paid), to be spent on exploration expenditures during the period between the completion of Stage One and the completion of Stage Two. The €200,000 ($282,400) was recorded as an advance to AFOy as of December 31, 2023. As of September 30, 2024, the Company advanced a total of $380,556 (€266,500) to AFOy for exploration expenditures, including the initial €200,000.

·As a Stage Two earn-in, the Company has the option, for a period of 12 months from the date of completion of Stage One, to acquire the remaining 51% interest in AFOy, bringing their total interest to 100%. The Company can exercise the Stage Two option by issuing a further 1,530,000 common shares, paying an additional €15,000 for the purposes of paying existing shareholder loans and accrued interest, and depositing an additional €200,000 into a dedicated account for further exploration expenditures. The option to acquire additional 51% interest expired on March 3, 2023.

During the period between Stage One and Stage Two, AEbv will be the operator for all mining work conducted on the Property. During this same period, the Company and AEbv will form a technical committee comprised of one representative from each party, with AEbv’s representative having the casting vote.

As at September 30, 2024, the Company holds a 49% interest in AFOy (December 31, 2023 – 49%). The investment in associate was assessed for impairment indicators relating to the underlying assets of AFOy in accordance with IAS 36 and IFRS 6.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

7. ADVANCE AND INVESTMENT IN AKKERMAN FINLAND OY (Continued)

The nine months ended September 30, 2024 and the year ended December 31, 2023 calculation for the Investment in AFOy is as follows:

Investment in AFOy as at January 1, 2023	$	258,532
Loss on investment in AFOy		(27,569)
Investment in AFOy as at December 31, 2023	$	230,963
Loss on investment in AFOy		(41,775)
Investment in AFOy as at September 30, 2024	$	189,188

The nine months ended September 30, 2024 and 2023 calculation for the Investment in AFOy is as follows:

		2024		2023
AFOy’s net loss	$	85,255	$	140,817
The Company’s ownership %		49%		49%
Share of loss of an associate	$	41,775	$	69,000

The following table illustrates the summarized financial information of AFOy:

	September 30, 2024			December 31, 2023
Current assets		$	25,792	$	13,595
Non-current assets			392,502		380,786
Current liabilities			10,727		11,898
Non-current liabilities			725,909		606,979
Loss for the period			85,255		56,264

8. CAPITAL AND RESERVES

(a)Authorized:

At September 30, 2024, the authorized share capital was comprised of an unlimited number of common shares. The common shares do not have a par value. All issued shares are fully paid.

(b)Share issuance:

On September 5, 2024, the Company completed a non-brokered private placement by issuing 10,000,000 units (“Unit”) at a price of $0.035 per Unit for gross proceeds of $350,000. Each Unit consists of one common share and one non-transferable warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.10 until September 5, 2027. The warrants were ascribed a value of $133,461. The Company incurred share issue costs in the amount of $29,628 in connection with the financing.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

8. CAPITAL AND RESERVES (Continued)

(c)Share Purchase Option Compensation Plan:

The Company has established a stock option plan whereby the Company may grant options to directors, officers, employees and consultants of up to 10% of the common shares outstanding at the time of grant. The exercise price, term and vesting period of each option are determined by the board of directors within regulatory guidelines.

Stock option transactions and the number of stock options for the nine months ended September 30, 2024 are summarized as follows:

	Exercise	December 31,			Expired/	September 30,
Expiry date	price	2023	Granted	Exercised	cancelled	2024
January 7, 2024	$0.20	45,750	-	-	(45,750)	-
March 14, 2027	$0.08	1,575,000	-		-	1,575,000
Options outstanding		1,620,750	-	-	(45,750)	1,575,000
Options exercisable		1,620,750	-	-	(45,750)	1,575,000
Weighted average exercise price		$0.08	$Nil	$Nil	$0.20	$0.08

As of September 30, 2024, the weighted average contractual remaining life is 2.45 years (December 31, 2023 – 3.11 years).

Stock option transactions and the number of stock options for the year ended December 31, 2023 are summarized as follows:

	Exercise	December 31,			Expired/	December 31,
Expiry date	price	2022	Granted	Exercised	cancelled	2023
March 14, 2023	$0.40	450,000	-	-	(450,000)	-
March 26, 2023	$0.40	10,000	-	-	(10,000)	-
January 7, 2024	$0.20	45,750	-	-	-	45,750
March 14, 2027	$0.08	1,575,000	-	-	-	1,575,000
Options outstanding		2,080,750	-	-	(460,000)	1,620,750
Options exercisable		2,080,750	-	-	(460,000)	1,620,750
Weighted average exercise price		$0.15	$Nil	$Nil	$0.40	$0.08

The weighted average assumptions used to estimate the fair value of options for the nine months ended September 30, 2024, and 2023 were:

	2024	2023
Risk-free interest rate	n/a	n/a
Expected life	n/a	n/a
Expected volatility	n/a	n/a
Expected dividend yield	n/a	n/a

Option pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate, and therefore the existing models do not necessarily provide a reliable measure of the fair value of the Company’s share purchase options.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

8. CAPITAL AND RESERVES (Continued)

(d)Finder’s Options:

The continuity of finder’s options for the year ended December 31, 2023 is as follows:

	Exercise	December 31,				December 31,
Expiry date	price	2022	Issued	Exercised	Expired	2023
August 28, 2023	$0.075	412,500	-	-	(412,500)	-
Outstanding		412,500	-	-	(412,500)	-
Weighted average exercise price		$0.075	$Nil	$Nil	$0.075	$Nil

The weighted average assumptions used to estimate the fair value of finder’s options for the nine months ended September 30, 2024 and 2023 were:

	2024	2023
Risk-free interest rate	n/a	n/a
Expected life	n/a	n/a
Expected volatility	n/a	n/a
Expected dividend yield	n/a	n/a

(e)Warrants:

The continuity of warrants for the nine months ended September 30, 2024 is as follows:

	Exercise	December 31,				September 30,
Expiry date	price	2023	Issued	Exercised	Expired	2024
February 28, 2025	$0.125	16,666,667	-	-	-	16,666,667
September 5, 2027	$0.100	-	10,000,000	-	-	10,000,000
Outstanding		16,666,667	10,000,000	-	-	26,666,667
Weighted average exercise price		$0.125	$0.10	$Nil	$Nil	$0.116

As of September 30, 2024, the weighted average contractual life is 1.36 years (December 31, 2023 – 1.16 years).

The continuity of warrants for the year ended December 31, 2023 is as follows:

	Exercise	December 31,				December 31,
Expiry date	price	2022	Issued	Exercised	Expired	2023
October 23, 2023	$0.20	4,219,641	-	-	(4,219,641)	-
February 28, 2025	$0.125	16,666,667	-	-	-	16,666,667
Outstanding		20,886,308	-	-	(4,219,641)	16,666,667
Weighted average exercise price		$0.14	$Nil	$Nil	$0.20	$0.125

The weighted average assumptions used to estimate the fair value of warrants for the nine months ended September 30, 2024 and 2023 were:

	2024	2023
Risk-free interest rate	2.86%	n/a
Expected life	3 years	n/a
Expected volatility	137.47%	n/a
Expected dividend yield	nil	n/a

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

9. RELATED PARTY TRANSACTIONS AND BALANCES

The aggregate value of transactions and outstanding balances relating to key management personnel and entities over which they have control or significant influence were as follows:

For the nine months ended September 30, 2024

	Short-term employee benefits	Post-employment benefits	Other long-term benefits	Termination benefits	Other expenses	Share-based payments	Total
Paul W. Kuhn ^(b) Chief Executive Officer, Director	$ 112.500	$ Nil	$ Nil	$ Nil	$ Nil	$ Nil	$ 112,500

For the nine months ended September 30, 2023

	Short-term employee benefits	Post-employment benefits	Other long-term benefits	Termination benefits	Other expenses	Share-based payments	Total
Paul W. Kuhn ^(b) Chief Executive Officer, Director	$ 112,500	$ Nil	$ Nil	$ Nil	$ Nil	$ Nil	$ 112,500

Related party liabilities

		Nine months ended				Amounts due to:
	Services / Advances	September 30, 2024		September 30, 2023		As at September 30, 2024		As at December 31, 2023
Pacific Opportunity Capital Ltd. ^(a)	Rent, management, accounting, marketing and financing services	$	94,550	$	89,650	$	86,194	$	47,277
Paul W. Kuhn ^(b)	Consulting	$	112,500	$	112,500	$	Nil	$	Nil
Mark T. Brown ^(d)	Expense reimbursement	$	Nil	$	Nil	$	1,837	$	465
TOTAL:		$	207,050	$	202,150	$	88,031	$	47,742
						Amounts due from:
Paul W. Kuhn ^(b)	Consulting services	$	Nil	$	Nil	$	126,910 ^(c)	$	72,084 ^(c)

(a)Pacific Opportunity Capital Ltd., a company controlled by a director of the Company.

(b)On June 1, 2019, the Company entered into a Contract for Services (the “Contract”) with a contractor to serve as the Company’s president and chief executive officer. The contractor is responsible for providing technical oversight and guidance, establishing corporate goals and objectives and setting and implementing corporate strategies. Pursuant to the Contract:

·The contractor will receive a fee of $12,500 per month and a rent allowance of €4,000 for the first four months;

·If the Company is substantially sold or has a change of control (as defined), the contractor will receive a payment equal to two years of fees; and

·The contract remains effective until terminated in writing by either the Company or the contractor. The Company may terminate the contract at any time without notice or payment in lieu thereof for cause or at any time without cause by providing six months’ written notice or by paying the contractor in lieu of notice. The contractor may terminate the contract at any time by providing the Company with three months’ written notice.

(c)This amount relates to PorMining paying Paul Kuhn for his technical services consulting in excess of the Contract (defined above in Note 9(b)). Such amount will be used to offset and reduce the Company's monthly fee payable to Paul Kuhn per the Contract.

(d)Mark T Brown is a director of the Company.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

10.LOSS PER SHARE

Basic and diluted loss per share

The calculation of basic and diluted loss per share for the nine months ended September 30, 2024 was based on the loss attributable to common shareholders of $40,640 (2023 – $40,733) and a weighted average number of common shares outstanding of 55,587,163 (2023 – 54,674,754).

Diluted loss per share did not include the effect of 1,575,000 share purchase options and 26,666,667 warrants outstanding at nine months end September 30, 2024 (2023 – 1,620,750 share purchase options and 20,886,308 warrants) as they are anti-dilutive.

11.FINANCIAL INSTRUMENTS

The fair values of the Company’s cash, other receivables, advance to related party, due from optionee, accounts payables and accrued liabilities and due to related parties approximate their carrying values because of the short-term nature of these instruments.

The Company’s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, interest risk, commodity price risk and currency risk.

(a)Credit risk

The Company’s cash is held in financial institutions in Canada, Portugal and Kosovo. Amounts are receivable from optionee and a related party.

(b)Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure.

As at September 30, 2024, the Company had cash of $292,386 (December 31, 2023 - $121,745), advance to related party of $Nil (December 31, 2023 - $72,084), due from optionee of $22,564 (December 31, 2023 - $18,409) and other receivables of $15,882 (December 31, 2023 - $13,559) to settle current liabilities of $109,660 (December 31, 2023 - $100,138).

Accounts payable and accrued liabilities are due within the current operating period.

(c)Interest rate risk

Interest rate risk is not material as the Company does not have any significant financial assets or liabilities subject to fluctuation in interest rates.

(d)Equity market price risk

The Company is exposed to price risk with respect to equity market prices. Price risk as it relates to the Company is defined as the potential adverse impact on the Company’s ability to finance due to movements in individual equity prices or general movements in the level of the stock market. The Company closely monitors individual equity movements and the stock market to determine the appropriate course of action to be taken by the Company.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

11. FINANCIAL INSTRUMENTS (Continued)

(e)Currency risk

The Company’s property interests in Portugal, Finland and Kosovo make it subject to foreign currency fluctuations and inflationary pressures which may adversely affect the Company’s financial position, results of operations and cash flows. The Company is affected by changes in exchange rates between the Canadian Dollar and foreign functional currencies. The Company does not invest in foreign currency contracts to mitigate the risks. The Company has net monetary assets of $65,900 dominated in Euros. A 1% change in the absolute rate of exchange in US dollars and Euros would affect its net income by $700.

IFRS 7 establishes a fair value hierarchy that prioritizes the input to valuation techniques used to measure fair value as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Company does not have any financial instruments that are measured at fair value.

12.SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

The non-cash transactions during the nine months ended September 30, 2024 and 2023 were as follows:

·As at September 30, 2024, a total of $13,500 (2023 - $Nil) in share issue costs were included in due to related parties.

13.MANAGEMENT OF CAPITAL RISK

The Company manages its cash, common shares, warrants and share purchase options as capital (see Note 8). The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, acquire or dispose of assets or adjust the amount of cash and cash equivalents held.

In order to maximize ongoing operating efforts, the Company does not pay out dividends. The Company’s investment policy is to invest its short-term excess cash in highly liquid short-term interest-bearing investments with maturities of 90 days or less from the original date of acquisition, selected with regards to the expected timing of expenditures from continuing operations.

The Company expects its current capital resources will be sufficient to carry out its exploration or operations in the near term.

AVRUPA MINERALS LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Unaudited, Presented in Canadian Dollars)

14.SEGMENTED FINANCIAL INFORMATION

The Company operates in one industry segment, being the acquisition and exploration of mineral properties. Geographic information is as follows:

	September 30, 2024	December 31, 2023
Non-current assets
Portugal	$ 210,259	$ 210,740
Finland	569,744	513,363
Canada	126,910	-
	$ 906,913	$ 724,103

	Nine months ended
	September 30, 2024	September 30, 2023
Mineral exploration expenses
Portugal	$ 24,207	$ 20,116
Kosovo	18,582	35,060
	$ 42,789	$ 55,176

	Note	September 30, 2024		December 31, 2023
		(Unaudited)			(Audited)

Assets
Current assets
Cash		$	292,386	$	121,745
Prepaid expenses and advances			3,107		2,699
Due from optionee	5		22,564		18,409
Advance to related party	9		-		72,084
Sales tax receivables			9,280		4,213
Other receivables			15,882		13,559
			343,219		232,709
Non-current assets
Advance to related party	9		126,910		-
Tax deposits	6		41,201		41,201
Exploration and evaluation assets	5		167,920		167,920
Equipment	4		373		854
Investment in PorMining	5		765		765
Advance to Akkerman Finland OY	7		380,556		282,400
Investment in Akkerman Finland OY	7		189.188		230,963
			906,913		724,103

Total assets		$	1,250,132	$	956,812

Liabilities
Current liabilities
Accounts payable and accrued liabilities		$	21,629	$	52,396
Due to related parties	9		88,031		47,742
			109,660		100,138

Shareholders' equity
Share capital	8		11,177,166		10,990,255
Reserves	8		7,780,404		7,642,877
Deficit			(17,817,098)		(17,776,458)
			1,140,472		856,674

Total shareholders' equity and liabilities		$	1,250,132	$	956,812

		Three months ended September 30				Nine months ended September 30

	Note	2024		2023		2024		2023

Mineral exploration expenses
Mineral exploration expenses	5	$	22,151	$	27,756	$	42,789	$	55,176
Reimbursements from optionee	5		(125,657)		(153,471)		(326,090)		(383,394)
			103,506		125,715		283,301		328,218
General administrative expenses
Bank charges			87		249		290		643
Bad debt recovery			(113)		-		(17,052)		-
Consulting fees, wages and benefits	9		51,105		42,638		147,016		138,741
Depreciation	4		370		512		1,096		1,535
Investor relations			9,452		(10,449)		47,592		30,310
Listing and filing fees			-		-		7,441		8,925
Office and administrative fees			(1,523)		3,112		8,476		8,757
Professional fees	9		18,846		28,500		63,975		91,557
Rent	9		(3,388)		2,550		8,661		7,650
Transfer agent fees			1,364		1,170		4,345		3,713
Travel			733		2,942		10,233		8,079
			(76,933)		(71,224)		(282,073)		(299,910)
Other items
Foreign exchange loss			(39)		(531)		(96)		(531)
Interest income			1		-		3		490
Loss on investment in Akkerman Finland OY	7		(2,466)		(16,060)		(41,775)		(69,000)
			(2,504)		(16,591)		(41,868)		(69,041)

Net income (loss) for the period			24,069		37,900		(40,640)		(40,733)
Exchange difference arising on the translation of foreign subsidiaries			3,957		(8,255)		4,066		(3,606)

Comprehensive income (loss) for the period		$	28,026	$	29,645	$	(36,574)	$	(44,339)
Basic earnings (loss) per share	10	$	0.00	$	0.00	$	(0.00)	$	(0.00)
Diluted earnings (loss) per share	10	$	0.00	$	0.00	$	(0.00)	$	(0.00)

	Share capital		Reserves
	Number of shares	Amount	Warrants	Finder’s options	Equity-settled employee benefits	Exchange	Subtotal	Deficit	Total shareholders' equity

Balance as at December 31, 2022 (Audited)	54,674,754	$ 10,990,255	$ 5,959,577	$ 297,734	$ 1,396,595	$(12,173)	$ 7,641,733	$ (17,719,677)	$ 912,311
Comprehensive loss	-	-	-	-	-	(3,606)	(3,606)	(40,733)	(44,339)
Balance as at September 30, 2023 (Unaudited)	54,674,754	10,990,255	5,959,577	297,734	1,396,595	(15,779)	7,638,127	(17,760,410)	867,972
Comprehensive loss	-	-	-	-	-	4,750	4,750	(16,048)	(11,298)
Balance as at December 31, 2023 (Audited)	54,674,754	10,990,255	5,959,577	297,734	1,396,595	(11,029)	7,642,877	(17,776,458)	856,674
Share issues:
Share issued for private placement	10,000.000	216,539	133,461	-	-	-	133,461	-	350,000
Share issue costs	-	(29,628)	-	-	-	-	-	-	(29,628)
Comprehensive loss	-	-	-	-	-	4,066	4,066	(40,640)	(36,574)
Balance as at September 30, 2024 (Unaudited)	64,674,754	$ 11,177,166	$ 6,093,038	$ 297,734	$ 1,396,595	$ (6,963)	$ 7,780,404	$ (17,817,098)	$ 1,140,472

	Nine months ended September 30
	2024		2023

Cash flows from operating activities
Net loss for the period	$	(40,640)	$	(40,733)
Items not involving cash:
Depreciation		1,096		1,535
Bad debt recovery		(17,052)		-
Loss on investment in Akkerman Finland OY		41,775		69,000
Changes in non-cash working capital items:
Sales tax receivables		(5,067)		(1,098)
Due from optionee		12,897		(24,231)
Advance to related party		(54,826)		(28,801)
Prepaid expenses and advances		(408)		9,043
Other receivables		(2,323)		752
Accounts payable and accrued liabilities		(30,767)		(83,601)
Due from/to related parties		26,789		(54,190)
Exchange difference arising on the translation of foreign subsidiaries		4,061		(3,591)

Net cash used in operating activities		(64,465)		(155,915)

Cash flows from investing activities
Advance to Akkerman Finland OY		(98,156)		-
Purchase of equipment		(610)		-

Net cash used in investing activities		(98,766)		-

Cash flows from financing activities
Proceeds from issuance of common shares		350,000		-
Share issue costs		(16,128)

Net cash provided by financing activities		333,872		-

Change in cash for the period		170,641		(155,915)
Cash, beginning of the period		121,745		307,531
Cash, end of the period	$	292,386	$	151,616

	Furniture and other equipment	Vehicles	Other assets	Total
Cost
As at January 1, 2023	$ 117,861	$ 38,712	$ 21,479	$ 178,052
Exchange adjustment	1,370	180	100	1,650
As at December 31, 2023	119,231	38,892	21,579	179,702
Additions during the period	-	-	610	610
Exchange adjustment	3,668	1,211	672	5,551
As at September 30, 2024	$ 122,899	$ 40,103	$ 22,861	$ 185,863

Accumulated depreciation
As at January 1, 2023	$ 115,259	$ 38,712	$ 21,479	$ 175,450
Depreciation for the year	1,775	-	-	1,775
Exchange adjustment	1,343	180	100	1,623
As at December 31, 2023	118,377	38,892	21,579	178,848
Depreciation for the period	647	-	449	1,096
Exchange adjustment	3,655	1,211	680	5,546
As at September 30, 2024	$ 122,679	$ 40,103	$ 22,708	$ 185,490

Net book value
As at January 1, 2023	$ 2,602	$ -	$ -	$ 2,602
As at December 31, 2023	$ 854	$ -	$ -	$ 854
As at September 30, 2024	$ 220	$ -	$ 153	$ 373

	Portugal		Kosovo		Others
	Alvalade	Others	Slivova	Others		Total
Exploration and evaluation assets
Acquisition costs
As of January 1, 2024	$ 167,920	$ -	$ -	$ -	$ -	$ 167,920
As of September 30, 2024	$ 167,920	$ -	$ -	$ -	$ -	$ 167,920


Mineral exploration expenses for the period ended September 30, 2024
Geological salaries and consulting	$ 20,582	$ -	$ 9,641	$ -	$ -	$ 30,223
Insurance	505	-	-	-	-	505
Rent	-	-	8,941			8,941
Site costs	1,470		-			1,470
Travel	1,650	-	-	-	-	1,650
Reimbursements from optionees	(306,239)	-	(19,851)	-	-	(326,090)
	$ (282,032)	$ -	$ (1,269)	$ -	$ -	$ (283,301)
Cumulative mineral exploration expenses since acquisition
Assaying	$ -	$ -	$ 297,975	$ 65,936	$ 10,846	$ 374,757
Concession fees and taxes	361,864	693,608	20,505	206,975	4	1,282,956
Depreciation	17,178	98,722	-	-	-	115,900
Drilling	610,197	472,513	1,180,217	-	-	2,262,927
Geological salaries and consulting	6,606,052	6,317,147	167,328	720,879	12,359	13,823,765
Geology work	-	32,377	891,582	402,515	364,525	1,690,999
Insurance	25,974	52,112	14,604	15,007	-	107,697
Legal and accounting	1,020	1,244	58,158	13,958	-	74,380
Office and administrative fees	254,272	279,739	83,665	101,624	68,446	787,746
Rent	606,084	596,896	51.099	88,221	20,560	1,362,860
Report	-	-	39,999	-	-	39,999
Site costs	195,833	244,377	188,571	194,582	8,865	832,228
Travel	245,545	247,277	63,047	22,478	15,326	593,673
Trenching and road work	-	-	34,339	-	-	34,339
Reimbursements from optionees	(9,646,149)	(4,890,826)	(3,012,494)	(45,158)	-	(17,594,627)
	$ (722,130)	$ 4,145,186	$ 78,595	$ 1,787,017	$ 500,931	$ 5,789,599