For the six month period ended June 30, 2021, the Company issued no shares of common stock to directors and employees of the Company for services rendered.

For the six month period ended June 30, 2021, the Company issued 4,700,000 shares of common stock for the acquisition of mineral rights at a transaction price ranging from $0.06 and $0.07 per share for a total of $309,000, 3,533,334 shares of common stock for services at a transaction price of $0.15 per share, 400,000 shares of common stock for services at a transaction price of $0.10 per share and 738,347 shares of common stock for debt settlement at a transaction price of $0.07 per share for a total of $51,685.

For the six months ended June 30, 2021, 1,000,000 shares (June 30, 2020, 1,000,000) became issuable to directors and officers of the Company for services rendered. These transactions have been recorded as stock-based compensation having a fair value of $85,000 (June 30, 2020 - $120,000) within shares to be issued.

As of June 30, 2021, the Company has yet to issue 5,771,577 shares of common stock. Of these, 2,576,534 shares of common stock are issuable to directors for services. An additional 1,995,043 shares of common stock are yet to be issued for debt settlements from prior years and 200,000 shares of common stock are yet to be issued for a private placement.

The Company has authorized Class A preferred stock available to be issued for $1.00 per share, are non-participating and non-voting and accrue cumulative dividends at the rate of 10% per annum. The Company may retract the stock at any time upon the payment of $1.00 per share plus any unpaid dividends. In the event of any wind-up of the Company, the Class A preferred stock has a priority distribution of $1.00 per share plus any unpaid dividends before any distribution to the common stockholders.

As at June 30, 2021, the Company was in arrears in dividends on preferred shares. The balance of dividends payable of $452,840 (December 31, 2020 - $419,848) includes dividends of $266,400 (December 31, 2020 - $254,400) and accrued interest of $186,440, (December 31, 2020 - $165,448), accrued at 10.0% interest compounded annually.

Preferred dividends for the six month periods ended June 30, 2021 and 2020 had an effect of $nil on loss per share available to common stockholders.

Joshua Gold Resources Inc.

(An Exploration Stage Company)

Notes to Unaudited Condensed Interim Financial Statements

For the six month periods ended June 30, 2021 and 2020

6.Capital Stock – continued

d) Warrants

The Company has no warrants outstanding as of June 30, 2021 and December 31, 2020.

e)Stock-Based Compensation

The Company incurred stock-based compensation expense in connection with its compensation agreements for its directors and officers. Under these agreements, common stock may be issued as a signing bonus or at certain benchmark dates within an individual’s period of service. Stock-based compensation is calculated as the fair value of the stock issued or to be issued to an individual at the time the employment contract was signed and is recorded at the time becomes owing to the individual. Stock issued to a director, manager, or employee may be deferred in the event that their contract requires the individual to remain employed with the Company for a specified time period after issuance.

For the six month period ended June 30, 2021, the Company’s 1,000,000 shares (June 30, 2020 - 1,000,000) became issuable in connection with stock-based compensation arrangements.

These shares were valued ranging from $0.06 to $0.11 per share and resulted in compensation expense of $85,000. These fees were recorded as a component of consulting fees in the amount of $85,000 on the unaudited condensed interim statements of operations and comprehensive loss.