Loans Payable

12 Months Ended

Dec. 31, 2022

Loans Payable

9. Loans Payable

As at	December 31, 2022			December 31, 2021			January 1, 2021
Unsecured, interest bearing loans at 10% per annum1	$	12,107		$	107,167		$	184,235
Unsecured, interest bearing loans at 12% per annum1		-			39,069			309,806
Unsecured, interest bearing loan at 19.4% per annum2		-			25,642			-
Unsecured, interest bearing loan at 20.5% per annum3		-			-			25,625
Unsecured, interest bearing loan at 13.25% per annum4		-			3,534			41,533
Unsecured, interest bearing loan at 15% per annum5		-			473,635			-
Unsecured, interest bearing loan at 45.33% per annum6		56,537			-			-
Unsecured, interest-bearing loan at TLREF + 3.5944% per annum7		97,911			-			-
Non-interest bearing loans		-			-			5,955
Total loans payable		166,555			649,047			567,154
Current portion of loans payable		(145,866	)		(630,534	)		(549,424	)
Long-term portion of loans payable	$	20,689		$	18,513		$	17,730

(1)	Loans bearing interest accrue at 10% and 12% per annum are all unsecured. The loans matured between January and April 1, 2021 and are now due on demand. During the year ended December 31, 2022, the Company made principal payments of $135,868 and $3,515 in interest payments.
(2)	On November 15, 2021, Garanti Bank extended a long-term loan to Park Place Turkey Limited in the amount of ₺350,000 (or approximately US$25,600). The loan matures on November 15, 2024 and bears interest at 19.44% per annum. Principal and accrued interest are paid monthly. During the year ended December 31, 2022, the Company made $20,946 (2021 - $547) in principal payments and $3,624 (2021 - $424) in interest payments. As at December 31, 2022, the loan is fully repaid.
(3)	On August 2, 2019, Garanti Bank extended a long-term loan to Park Place Turkey Limited in the amount of ₺300,000 (or approximately US$53,600). The loan matured on August 2, 2022 and bore interest at 20.5% per annum. Principal and accrued interest were paid monthly. On November 11, 2021, the loan was fully repaid. During the year ended December 31, 2022, the Company made $nil (2021 - $16,587) in principal payments and $nil (2021 - $7,921) in interest payments.
(4)	On February 4, 2020, Garanti Bank extended a long-term loan to Park Place Turkey Limited in the amount of ₺500,000 (or approximately US$83,500). The loan matured on February 4, 2022 and bears interest at 13.25% per annum. Principal and accrued interest are paid monthly. During the year ended December 31, 2022, the Company made $2,888 (2021 - $19,542) in principal payments and $45 (2021 - $1,822) in interest payments. As at December 31, 2022, the loan has been fully repaid.

TRILLION ENERGY INTERNATIONAL INC.

Notes to the Consolidated Financial Statements

For the years ended December 31, 2022 and 2021

(Expressed in U.S. dollars)

9. Loans Payable (continued)

(5)	On March 4, 2021, the Company received $500,000 from a third party (the “Lender”) repayable in one year from the date of disbursement. The amount is subject to interest at a rate of 15% per annum. The Company granted 1,000,000 common share purchase warrants to the lender in conjunction with the loan. The warrants expire in two years and have an exercise price of $0.16 per warrant. The fair value of the share purchase warrants has been accounted as a debt issuance cost and offset against the loan and will be recognized as financing cost over the term of the loan. The fair value of the warrants was determined to be $152,750 based on the Black-Scholes Option Pricing Model using the following assumptions: expected dividend yield - 0%, expected volatility - 229%, risk-free interest rate - 0.08% and an expected remaining life – 2.00 years. During the year ended December 31, 2022, the Company recognized $26,365 (2021– $126,386) as financing cost and accrued interest of $18,082 (2021 - $62,055). As at December 31, 2022, the loan has been fully repaid.
(6)	On May 25, 2022, Garanti Bank extended a long-term loan to Park Place Turkey Limited in the amount of ₺1,500,000 (or approximately US$91,961). The loan matures on May 23, 2024, and bears interest at 45.33% per annum. Principal and accrued interest are paid monthly. During the year ended December 31, 2022, the Company made $26,968 in principal payments and $20,636 in interest payments.
(7)	On November 23, 2022, Garanti Bank extended a short-term loan to Park Place Turkey Limited in the amount of ₺2,000,000 (or approximately US$107,356). The loan matures on November 23, 2023, and bears interest at the Turkish Lira Overnight Reference Rate (“TLREF”) plus 3.5944% per annum. Principal and accrued interest are paid monthly. During the year ended December 31, 2022, the Company made $10,183 in principal payments and $1,607 in interest payments.