CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Expressed in United States dollars)

FOR THE SIX MONTHS ENDED MARCH 31, 2016

The accompanying notes are an integral

part of these condensed consolidated interim financial statements.

The accompanying notes are an integral

part of these condensed consolidated interim financial statements.

Supplemental Cash Flow Information

The accompanying notes are an integral

part of these condensed consolidated interim financial statements.

The accompanying notes are an integral

part of these condensed consolidated interim financial statements.

Nature of Operations

ESSA Pharma Inc. (the "Company")

was incorporated under the laws of the Province of British Columbia on January 6, 2009. The Company's head office address

is Suite 720 - 999 West Broadway, Vancouver, BC, V5Z 1K5. The registered and records office address is the 26th

Floor at 595 Burrard Street, Three Bentall Centre, Vancouver, BC, V7X 1L3. The Company is listed on the NASDAQ Capital Market

under the symbol "EPIX", and on the TSX Exchange under the symbol "EPI".

The Company is focused on the

development of small molecule drugs for the treatment of prostate cancer. The Company has acquired a license to certain patents

(the "NTD Technology") which were the joint property of the British Columbia Cancer Agency and the University of British

Columbia. As at March 31, 2016, no products are in commercial production or use.

Change in Presentation Currency

The Company has retroactively

changed its presentation currency to the United States dollar ("US$") from the Canadian dollar ("C$").

The change is detailed in Note 2.

These financial statements have

been prepared in accordance with International Financial Reporting Standards ("IFRS") assuming the Company will continue

on a going-concern basis. The Company has incurred losses and negative operating cash flows since inception. The Company incurred

a loss of $5,037,263 during the six months ended March 31, 2016 and has an accumulated deficit of $20,138,109. The ability of

the Company to continue as a going concern in the long-term depends upon its ability to develop profitable operations and to continue

to raise adequate financing. During the six months ended March 31, 2016, the Company completed two private placements for

total gross proceeds of approximately $20,000,000 (Note 8). As at March 31, 2016, the Company has not advanced its research into

a commercially viable product. The Company's continuation as a going concern is dependent upon the successful development

of its NTD Technology to a commercial standard.

Statement of Compliance

These condensed consolidated

interim financial statements, including comparatives, have been prepared in accordance with International Accounting Standards

("IAS") 34 Interim Financial Reporting' ("IAS 34") using accounting policies consistent with

International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB")

and Interpretations of the International Financial Reporting Interpretations Committee ("IFRIC").

The condensed consolidated interim

financial statements do not include all the information and disclosures required in the annual consolidated financial statements

and should be read in conjunction with the Company's annual consolidated financial statements for the year ended September

Basis of Presentation

The condensed consolidated interim

financial statements have been prepared on a historical cost basis except for certain financial assets measured at fair value.

In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting,

except for cash flow information.

Functional and Presentation

The functional currency of an

entity is the currency of the primary economic environment in which the entity operates. From inception to date, the functional

currency of the Company has been the Canadian dollar and its subsidiary's the United States dollar. The functional currency

determinations were conducted through an analysis of the consideration factors identified in IAS 21, The Effects of Changes

in Foreign Exchange Rates. The financing completed in January 2016 and changes to the Company's operations have resulted

in a change to the currency in which the Company's management conducts its operating, capital and financing decisions. Consequently,

the functional currency of the Company became the US$ effective January 1, 2016.

In anticipation of the change

in functional currency, the Company adopted the US$ as the presentation currency for the consolidated entity as of October 1,

2015. For comparative reporting purposes, historical financial statements were translated into the US$ reporting currency whereby

assets and liabilities were translated at the closing rate in effect at the end of the comparative periods; revenues, expenses

and cash flows were translated at the average rate in effect for the comparative periods and equity transactions were translated

at historic rates. The historic translation had an impact of $73,503 as an unrealized foreign exchange loss as at October 1, 2014.

Upon the change of functional currency as at January 1, 2016, the Company recognized an impact of $283,189 to the accumulated

comprehensive income (loss).

These financial statements are

presented in United States dollars. All financial information is expressed in United States dollars unless otherwise stated.

The Company makes estimates

and assumptions about the future that affect the reported amounts of assets and liabilities. Estimates and judgments are continually

evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable

under the circumstances. In the future, actual results may differ from these estimates and assumptions.

The effect of a change in an

accounting estimate is recognized prospectively by including it in comprehensive income in the period of the change, if the change

affects that period only, or in the period of the change and future periods, if the change affects both. Significant assumptions

about the future and other sources of estimation uncertainty that management has made at the statement of financial position date,

that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results

differ from assumptions that have been made, relate to the following key estimates:

The application of the Company's

accounting policy for intangible assets expenditures requires judgment in determining whether it is likely that future economic

benefits will flow to the Company, which may be based on assumptions about future events or circumstances. Estimates and assumptions

may change if new information becomes available. If, after expenditures are capitalized, information becomes available suggesting

that the recovery of expenditures is unlikely, the amount capitalized is written off in profit or loss in the period the new information

recognition, the Company carries the value of intangible assets at cost less accumulated amortization and any accumulated

impairment losses. Amortization is recorded on a straight-line basis based upon management's estimate of the useful

life and residual value. The estimates are reviewed at least annually and are updated if expectations change as a result of

technical obsolescence or legal and other limits to use. A change in the useful life or residual value will impact the

reported carrying value of the intangible assets resulting in a change in related amortization expense.

Product development and relocation