Announcement PDF Half Year Report 30 June 2022 CORPORATE DIRECTORY Directors MH Stirzaker PG Bibby JM Madden Non-Executive Chairman Managing Director and Chief Executive Officer Executive Director and Company Secretary Company Secretary JM Madden Registered office 211 McIlwraith Street Princes Hill Victoria 3054 Postal address PO Box 337 Carlton North Victoria 3054 Telephone Facsimile 61-3-381 0859 - Website www.akoravy.com Share registry Link Market Services Tower 4, 727 Collins Street Melbourne Victoria Australia 6000 Telephone 1300 554 474 Corporate Advisor Harbury Advisors Pty Ltd Level 3, 157 Collins Street Melbourne Victoria Australia Auditor Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco WA Australia Solicitors Dentons Australia Level 17, 585 Collins Street Melbourne Victoria Australia CONTENTS Directors’ report 2 Auditor’s independence declaration 14 Condensed consolidated statement of profit or loss and other comprehensive income 15 Condensed consolidated statement of financial position 16 Condensed consolidated statement of changes in equity 17 Condensed consolidated statement of cash flows 18 Notes to the financial statements 19 Directors’ declaration 28 Independent auditor’s review report 29 Page 1 DIRECTORS’ REPORT The directors present their report, together with the financial statements of AKORA Resources Limited (ACN 139 847 555) (hereafter referred to as the “Company”), for the half-year ended 30 June 2022. Principal Activities The principal activities of the Company during the half-year were exploration for iron ore in Madagascar. The Company holds 100% equity in two Malagasy entities; Iron Ore Corporation of Madagascar sarl (IOCM) and Universal Exploration Madagascar sarl (UEM). IOCM holds the Bekisopa iron ore tenements and UEM holds the Tratramarina iron ore tenements. In addition, the Company has earned a 100% equity interest in the commodities discovered at the Ambodilafa tenements pursuant to the Jubilee/AKORA Ambodilafa Farm-in Agreement. The Company focused on advancing the Bekisopa iron tenements during the first-half of the financial year. Operating Results, Review of Operations for the Year and Significant Changes in State of Affairs The net loss after tax is $674,184 for the half-year ended 30 June 2022 (the net loss after tax for the previous half-year was $211,058). No significant changes in the Company’s state of affairs occurred during the half-year. Review of Activities Mineral Resource During the first-half of the financial year, your Company delivered a maiden JORC Resource at Bekisopa which was virtually double the volume forecast in the December 2020 prospectus. With mineralisation achieved in all but two drill holes during 2021, the Company brought forward the proposed work programmes for 2022 to better manage exploration costs and, most importantly, maximise the potential the JORC Resource. The Mineral Resource was achieved within 15 months from the date of listing on the Australian Securities Exchange. The Inferred Resource of 194.7 Mt for 75.4 Mt of iron concentrate at a grade of 67.6% Fe was achieved across three ore zones: Location Southern Central Northern Total (Inferred) Inferred Resource Tonnes Head Grade Mt % Fe 110.2 32.0 41.2 30.0 43.3 33.3 194.7 32.0 Concentrate Tonnes Grade Mt % Fe 42 67.6 15 67 19 68.2 75.4 67.6 Davis Tube Recovery % 37.8 36.3 43.3 38.7 Table 1 Bekisopa Maiden JORC Inferred Resource Three products may be produced from Bekisopa. By selectively targeting the high-grade outcropping and high-grade weathered material using conventional shovel and truck operations, lump and fines products could be produced as direct shipping ore (DSO). DSO refers to the fact that apart from simple mechanical processes such as crushing, screening, and blending, the iron ore is shipped in essentially the same form as that extracted from the ground with potential significant capital and operating cost advantages. Within the maiden JORC Resource, H&S Consultants identified 7.8 Mt of outcrop and weathered highgrade DSO. It is this DSO tonnage that is the near-term focus of the Company in upcoming exploration and economic studies. In-fill drilling commencing late-August 2022 is aimed at expanding the existing resource, and better delineating the extent and grade of the weathered zone. The board of directors believe there is potential above the 7.8 Mt of DSO defined by H&S. The present resource modelling used typically large-scale bulk mining blocks of 5 metres by 15 metres by 25 metres, which is acceptable for mining of fresh iron mineralisation. At Bekisopa, it is highly likely that mineralisation at surface will be extracted using a selective mining approach based on smaller mining blocks of about 2 metres in height. This should minimise dilution and enable the Company to achieve increased DSO tonnage and higher grades. Although this DSO tonnage represents a small portion of the JORC Resource, it clearly the best and fastest strategy to cash flows. Page 2 DIRECTORS’ REPORT Tenement 3757 Northern Zone Tenement 10430 5 X 5 kms Central Zone Southern Zone Figure 1 Bekisopa PR 10430 The third product from Bekisopa will be a high-grade iron concentrate. (The board of directors have identified the potential for three products from the iron mineralisation at the Bekisopa project – DSO from the outcrop and weathered zone, Fines and/or high-grade iron concentrate from the Mineral Resource making the second and third products.) The production of high-grade fines will require crushing fresh iron ore to a relatively coarse 75 microns to produce a premium-grade 67% or better iron concentrate. This concentrate would be an optimal feedstock for the production of Direct Reduced Iron (DRI) pellets. DRI is produced by the removal (reduction) of oxygen from iron ore using natural gas as the reducing agent instead of coal. Increased use of DRI is one of the key decarbonisation strategies of the global steel industry. Metallurgical tests suggest the Inferred Resource at Bekisopa could be upgraded to a high-grade iron concentrate with potential to produce product at a grade of 67.6% Fe with low impurities. The board of directors believe there is potential for a significantly larger Mineral Resource at Bekisopa. H&S Consultants (see ASX Announcement, dated 11 April 2022) identified exploration potential comprising two components: (i) Exploration potential for 20-40 Mt @30-45% Davis Tube recovery (DTR) for a total of 8-16 Mt of concentrate grading 66-69% Fe exists in the Northern and Central zones. (ii) The new Mineral Resource plus the above Exploration Targets represent approximately 3.3 kilometres of a 5-kilometre-long zone of mineralisation and therefore, allows for an additional 2 km of exploration potential along strike between known deposits. Two magnetite-bearing diamond drillholes located halfway between the Southern and Central deposits suggest a further Page 3 DIRECTORS’ REPORT Exploration Target of 30-50 Mt @ 20-40% DTR for a total 10-20 Mt of concentrate grading 6669% Fe. Drilling and assaying results reported during the half-year During the course of the half-year, the Company released to the ASX a number of announcements that outlined detailed drilling and assaying results. Northern Zone The Northern Zone covers some 1.5 kilometres from north to south and is about 200 meters across strike. It extends to a depth of 270m with true thicknesses of 50 to 106m. Assays demonstrate significant readily upgradeable iron mineralisation that continues more than 300 metres downdip from surface. Several of the drillholes intersected high-grade outcrops: BEKD 01 BEKD 19 BEKD 24 From surface to 6.9 metres From surface to 4.6 metres From surface to 3.9 metres 64.7% Fe 63.9% Fe 63.7% Fe These iron grades are DSO and therefore, providing the Company with potential to produce product which will only require mining, crushing and screening. Drilling also intercepted substantial iron mineralisation at depth: BEKD 51 BEKD 53 From 135 metres to 203 metres From 144.7 metres to 249.3 metres 30.5% Fe 31.4% Fe The true thickness in these holes were 78 metres and 105.5 metres of continuous iron mineralisation. True Thickness ~67.4m Figure 2 Northern Zone cross Section 7,612,100N covering drill holes BEKD 01, BEKD 19, BEKD 50 and BEKD 51. High-grade ~64% Fe at surface and continuous iron mineralisation downdip to plus 260 metres Page 4 DIRECTORS’ REPORT True Thickness 105.5m Figure 3 Northern Zone cross Section 7,612,300N covering BEKD 20, BEKD 52 and BEKD 53 High-grade ~64% Fe at surface and continuous iron mineralisation downdip to plus 270 metres Central Zone The Central Zone covers approximately 1.8 kilometres from north to south and is some 300 metres across strike. The Central Zone hosts a relatively flat, westerly dipping ore body suitable for a low strip ratio openpit mining operation. In addition to identifying mineralisation that is readily upgradeable, geological mapping indicates that there is a consistent flat lying, surficial zone, measuring 50 metres to 70 metres in width, where weathering has upgraded the average grade of the primary mineralisation, with some areas potentially DSO. Drill holes completed in this mineralisation were BEKD 03 to BEKD 08 and BEKD 37 to BEKD 42. Figure 4 Central Zone cross section along latitude 7611000 incorporating Bekisopa drill holes BEKD 03, BEKD 41 and BEKD 42 Drill holes BEKD 05 and BEKD 06 extend the width of the mineralised strike to ~200m. Drill holes BEKD 04 and BEKD 05 both ended in mineralisation at 100.4 metres downhole. Page 5 DIRECTORS’ REPORT Figure 5 Central Zone cross section along latitude 7610800 incorporating Bekisopa drill holes BEKD 04, BEKD 05 and BEKD 06 from the 2020 drilling programme and drill holes BEKD 39 and BEKD 40 from the 2021 drilling campaign Southern Zone The Southern Zone covers an area of approximately 1.5 kilometres from the north to south and approximately 700 metres across strike and, like the other Zones, has potential to achieve a large, near surface high-grade region with DSO as well as readily upgradeable mineralisation. In total, the Company completed 37 drill holes in the Southern Zone. Twelve of the drillholes intersected the mineralisation zone where it outcrops, and these have returned high-grade intercepts from 61% Fe to 68% Fe from surface up to 14 metres downhole. These iron grades are DSO equivalent and therefore, provide the potential for the Company to produce a product that will only require mining, crushing and screening. Several of the drillholes intersected high-grade outcrops: BEKD 13 BEKD 31 BEKD 44 From surface to 14.6 metres From surface to 8.12 metres From surface to 5.9 metres 64.9% Fe 68.2% Fe 63.9% Fe At depth, several drill holes recorded substantial iron mineralisation grading 63%+ Fe including: BEKD 45 BEKD 46 BEKD 46 BEKD 56 From 56.8 metres to 67.8 meters From 68.1 metres to 87.6 meters From 88.9 meters to 102.2 meters From 22.8 meters to 30.3 meters 64.0% Fe 63.3% Fe 64.4% Fe 64.9% Fe The Company also achieved iron mineralisation at depth in several drill holes in the Southern Zone: BEKD 46 BEKD 43 BEKD 59 From 16.1 meters to 178.9 meters From 35.8 metres to 185.4 meters From 23.1 metres to 173.9 meters 35.6% Fe 37.6% Fe 33.2% Fe Page 6 DIRECTORS’ REPORT 7,608,450N 400m Gneiss/Calc-silicate Figure 6 Southern Zone cross Section 7,608,450N. High-grade ~60% Fe and ~61% Fe at surface in BEKD 18 and BEKD 55 and at depth a continuous 150.8 metres iron intercept at 33.2% Fe in BEKD 59. 7,608,150N 400m Gneiss/Calc-silicate Iron Formation Figure 7 Southern Zone cross Section 7,608,150N demonstrating high-grade intercepts at surface and at depth. Metallurgical testwork reported during the first-half As part of the identification of a JORC Mineral Resource, the Company completed both Davis Test Tube (DTT) and wet Low Intensity Magnetic Separation (wLIMS) testwork. DTT is a laboratory instrument designed to separate magnetic ores into strongly magnetic and weakly magnetic fractions. It has become a standard laboratory test used for the assessment of the upgradeability of magnetic ores by magnetic separation techniques. In laboratory wLIMS tests, the iron ores are process wet, to suppress dust, then pass over a rotating magnetic drum separating the magnetic iron from nonmagnetic material. The goal from these metallurgical tests is to better understand the upgradability of the iron mineralisation for the development of a larger mining operation based on producing an iron concentrate. The DTT and wLIMS testwork trials were undertaken on continuous drill core composites and intervals from surface to varying depths downhole for a number of drill holes. Overall, the outcomes were excellent across all the drill holes. wLIMS and DTT for BEKD 01 testwork generated the following results: Page 7 DIRECTORS’ REPORT BEKD 01 Sample Composite Interval (m) (m) Fe % 1 2 3 4 5 6 7 0 – 8.0 8.0 – 13.54 13.54 – 20.27 20.27 – 26.54 26.54 – 32.30 32.30 – 37.75 37.75 – 43.54 60.6 49.6 45.1 42.5 38.9 31.4 47.5 6.6 15.1 16.7 17.1 18.9 24.8 12.8 45.1 16.0 Average Head Grade Silica Alumina % % wLIMS Iron Fines Grade Fe Silica Alumina % % % Davis Tube Test Grade Fe Silica Alumina % % % 2.8 2.9 4.4 4.4 3.5 5.6 2.4 67.6 63.6 63.3 60.5 63.4 59.5 63.0 1.5 4.3 4.0 5.3 4.0 6.8 4.1 1.4 2.0 2.1 2.5 1.6 2.4 1.3 69.9 69.6 69.6 69.4 70.1 70.1 69.9 0.7 0.8 0.7 0.8 0.4 0.5 0.4 0.8 0.7 0.8 0.7 0.6 0.8 0.5 3.7 63.0 4.3 1.9 69.8 0.6 0.7 Table 2 wLIMS/DTT Results from BEKD 01 Composite Sample Testwork on drill hole BEKD 01 clearly indicates that the iron mineralisation is readily upgradable using wLIMS magnetic separation to an average of 63% Fe after crushing to <2 mm, and then to 69.9% Fe after DTT processing at a -75 µm grind. This premium high-grade at 69.8% Fe contains very low impurity levels of 0.5% Silica, 0.7% Alumina, 0.003% Phosphorous and 0.06% Sulphur. Bekisopa represents a potential long-term producer of very clean, premium grade iron concentrate suitable for DRI pellet production. Similar metallurgical testwork was undertaken on the Central Zone at BEKD 04. Table 3 indicates that the average head-grades varied from a high of 60.1% Fe to a low of 24.2% Fe (the lowest interval grade being 9.48% Fe) and that all composites were upgraded to better than benchmark grade iron levels. The average DTT result for drill hole BEKD 04, from surface to 38.1 metre downhole, was 70.2% Fe. BEKD 04 Sample Composite Interval (m) (m) % % % % % % % % % 1 2 0 - 5.5 5.5 - 11.1 60.1 43.9 7.9 17.3 4.1 2.9 69.7 69.6 0.8 1.2 1.2 0.4 70.1 70.0 0.15 0.30 0.54 0.24 3 11.1 - 19.4 37.4 27.5 3.1 69.2 1.7 0.4 69.6 0.20 0.20 4 19.4 - 25.7 26.4 31.5 2.9 63.7 5.8 0.3 71.1 0.34 0.01 5 25.7 - 31.3 25.5 22.2 2.3 61.9 4.3 0.2 70.8 0.18 0.01 6 31.3 - 38.1 24.2 32.3 3.5 62.2 5.4 1.0 69.8 0.69 0.45 35.1 23.1 3.1 66.1 3.2 0.6 70.2 0.31 0.24 Average Fe Head Grade Silica Alumina wLIMS Iron Fines Grade Fe Silica Alumina Davis Tube Test Grade Fe Silica Alumina Table 3 wLIMS/DTT Results from BEKD 04 Composite Sample The Company also conducted metallurgical testwork on drill holes BEKD 10 and BEKD 34, located in the Southern Zone. Processing trial results for BEKD10, on the eastern side of the Southern Zone, from surface to 37.2 metres downhole showed this mineralisation readily upgraded at a 2 mm crush to 62.4% Fe and at a 75-micron sizing to an outstanding 69.3% Fe. The same metallurgical testwork on BEKD 34, on the western side of the Southern Zone, delivered 66.0% Fe after a 2 mm crush and 69.5% Fe at a 75-micron sizing, all with substantial reduction in impurities. These processing trials show the consistency of upgradability across the expansive Southern Zone and largely replicate the results achieved on the Northern and Central Zones and therefore, along the main 5kilometre strike length. Page 8 DIRECTORS’ REPORT BEKD34 Sample Composite Interval (m) (m) % % % % % % % % % 1 2 0 – 4.9 4.9 – 10.43 59.4 62.1 7.2 4.7 2.7 1.6 69.0 68.1 0.6 1.0 0.9 0.9 68.9 69.4 1.2 0.6 1.0 0.7 3 10.43 – 14.8 41.1 18.2 1.8 64.3 3.3 0.6 69.7 0.9 0.2 4 14.8 – 18.7 51.0 8.6 1.5 65.0 2.5 0.7 70.4 0.4 0.3 5 18.7 – 23.0 54.1 4.9 1.1 66.2 1.6 0.7 69.5 0.4 0.5 6 23.0 – 29.36 Fe Head Grade Silica Alumina wLIMS Iron Fines Grade Fe Silica Alumina Davis Tube Test Grade Fe Silica Alumina 59.2 3.5 0.9 66.0 1.5 0.7 70.0 0.4 0.4 7 45.6 6.9 1.3 63.3 2.5 0.8 68.8 0.5 0.4 Average 53.2 7.7 1.6 66.0 1.9 0.8 69.5 0.6 0.5 Table 4 wLIMS/DTT Results from BEKD 34 Composite Sample These outstanding iron concentrate grades, achieved at a relatively coarse 75-micron sizing, highlight the potential for Bekisopa to be able to deliver DRI pellet grade iron concentrates to meet the growing demand for decarbonisation in the iron and steel industry. Premium grade iron feed, with very low impurity levels as seen from BEKD10 and 34, Table 7, is what is forecast to be required to produce DRI pellets from natural gas or green hydrogen iron making processes. Bekisopa, is well placed to provide these growing markets that have an abundance of natural gas, for example the Middle East, or those locations that will be producing green hydrogen. DTT conducted on BEKD 10 and BEKD 34 shows very high iron grades, averaging 69.4% Fe, with low impurities, Table 5. Average BEKD10 0 to 37.2m BEKD34 0 to 34.8m Head Grade Davis Tube Test results % % Fe % Silica % Alumina % Phosphorus % Sulphur 47.9 69.3 1.1 0.8 0.062 0.006* 53.2 69.5 0.6 0.5 0.016 0.004* Table 5 BEKD 10 and BEKD 34 DTT achieves premium grade iron levels, average 69.4% Fe, and low impurity levels from surface to ~37m downhole. Note *: A few high S assays at depth is likely due to the presence of pyrite. Wardell Armstrong International Following the announcement of the initial Inferred Resource of 194.7 million tonnes, it is imperative to advance the Bekisopa project to the next stage and identify various options for development. On 9 June 2022, the Company announced that it had retained WAI to prepare the scoping study for the advancement of the Bekisopa project as a low-cost, DSO mining, crushing and screening operation. WAI has broad experience and has recently undertaken studies of iron ore projects for other clients. The scoping studies will be completed by November and will encompass: • • • • • • • • Geology, review and future drilling plan; Mining, DSO, fines then very high grade DRI feed; Metallurgy and Processing, including waste and tailings items; Environment and Social; Transport Logistics, Infrastructure and Port; Power, requirements and options, e.g. solar and wind; Financial, capital and cost estimates; and Risk Assessment. Page 9 DIRECTORS’ REPORT Several of the studies require site visits, and WAI being based in the United Kingdom with African offices, is well positioned to promptly and cost effectively visit Madagascar. One of the first visits, undertaken in July, was to understand and evaluate the various transport options and identify practical solutions and approaches. The Scoping Studies will be completed and reported by November, excepting unforeseen circumstance. Bekisopa Southwest Tenements The Company completed its first regional reconnaissance exploration programme and the first rock chip sampling from the 100% owned Bekisopa Southwest tenements, called Satrokala. Satrokala is approximately 40 kilometres southwest of Bekisopa PR 10430. In total, 102 rock chip samples were collected, and assayed, and demonstrated very encouraging assay results. The sample locations cover a strike length of approximately ten kilometres with a potential width of one kilometre within tenements 27211 and 35827. The first rock chip assay results ranged in iron grade from 16.3% up to 68.0% Fe and averaged 58.8% Fe. Excluding iron assays less than 58% Fe, the average iron grade increases to an excellent 64.5% Fe. Of the 102 rock chip assays, 89 samples delivered iron grades greater than 50%, and an average of 62.1% Fe, the benchmark iron grade. The 66 highest-grading samples delivered iron grades from 58% to 68% Fe, with an average iron grade of 64.5% Fe. These are encouraging first iron results that indicate, subject to the completion of systematic and successful exploration activities, should add tonnes to the existing AKORA’s flagship Bekisopa project. The Satrokala tenements include PR 27211 and PR 35827 with Figure 8 showing the location of these tenements and the 102 rock chip sample locations. Page 10 DIRECTORS’ REPORT Figure 8 AKORA’s 100% owned Bekisopa Southwest tenements, in an area called Satrokala. On the two tenements, 35827 and 27211, are the location of the 102 rock chip samples. Figure 9 shows specific rock chips and the countryside where the rocks were located. This shows lump iron rocks at surface that are potentially high-grade iron ore lump product in an undulating barren to grassland area. Figure 9 Location of rock chip sample TA468, assay number V2138, average iron grade 64.63%. Page 11 DIRECTORS’ REPORT ASX Listing Rule 4.10.19 In accordance with Listing Rule 4.10.19, the board of directors wish to confirm that the Group has been utilising the cash and assets in a form readily convertible to cash that it held at the time of its admission to the Official List of ASX on 15 December 2020 and since its admission to the end of this half-year report in a way that is consistent with its business objectives. Dividends No dividends were declared and paid during the half-year. Options At as the date of this report, the unissued ordinary shares of the Company under unlisted options are: Grant date Expiry date 7 December 2020 7 December 2020 17 May 2022 17 May 2022 17 May 2022 7 December 2022 (IPO Options) 7 December 2022 (Escrow Options) 17 May 2026 (Management Options) 17 May 2026 (Management Options) 17 May 2026 (Management Options) Exercise Price Option Number $0.3000 $0.3000 $0.4500 $0.5500 $0.6500 7,905,268 2,244,750 650,000 650,000 650,000 12,100,018 Under the terms and conditions of the IPO the Company raised $5,000,000 with the issue of 20,000,000 shares at 25 cents per share. The Company also issued subscribers with a free-attaching unlisted option over ordinary shares with the options terms being one option for every two shares subscribed at an exercise price of 30 cents per option and with an expiry date of 2 years from the date of issue. The Company granted Harbury Advisors Pty Ltd with 2,244,750 options over ordinary shares pursuant to its Letter of Engagement on the same terms and conditions as the IPO options. The options over ordinary shares issued to Harbury have been escrowed by the ASX for a period of two years. On 17 May 2022, shareholders approved the grant of options over ordinary shares to key management. The Management Options comprise three tranches with three vesting periods 17 May 2023, 17 May 2024 and 17 May 2025 and an expiry date of 17 May 2026. Performance rights At as the date of this report, the unissued ordinary shares of the Company under performance rights are as follows: Award date Vest date 13 April 2021 22 August 2022 Accounting Price Rights Number $0.3800 400,000 Shareholders approved the award of 400,000 performance rights convertible into 400,000 fully paid ordinary shares for zero consideration to Mr MH Stirzaker on 13 April 2021. The Company has applied AASB 2 Share-based payments to value the award of performance rights. Events After Balance Date There are no material post-balance date events. Environmental Issues The Company's projects are subject to the laws and regulations regarding environmental matters in Madagascar. Many of the activities and operations of the Company cannot be carried out without prior approval from and compliance with all relevant authorities. The company conducts its activities in an environmentally responsible manner and in accordance with all applicable laws. However, the company could be subject to liability due to risks inherent to its activities, such as accidental spills, leakages or other unforeseen circumstances. Information on Directors Page 12 DIRECTORS’ REPORT The following persons were the directors in office as at the date of this report: MH Stirzaker (Non-executive Chairman), appointed 22 August 2020 PG Bibby (Managing Director), appointed 9 July 2015 JM Madden (Executive Director and Company Secretary), appointed 6 October 2009 Proceedings on Behalf of Company The Company has no outstanding or pending litigation whether brought by the Company or brought against the Company by a third party. Non-Audit Services There were no non-audit services provided by the Company’s external auditor. Auditor’s Independence Declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 14. This report of the directors is signed in accordance with a resolution of the Board of Directors. MH Stirzaker Chairman Dated this 29 August 2022 Page 13 To the Board of Directors Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 As lead audit Director for the review of the financial statements of Akora Resources Limited for the half year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of: • • the auditor independence requirements of the Corporations Act 2001 in relation to the review; and any applicable code of professional conduct in relation to the review. Yours Faithfully, HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA Director Dated Perth, Western Australia this 29th day of August 2022 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME Half-Year Note 30 June 2022 $ Total revenue and other income Expenditure Administration costs Contractors and consultants Depreciation Employee costs Exchange fluctuation Investor relations Listing costs Provisions Secretarial costs Share-based payments Travel Other Total expenditure 8 Profit/(loss) before tax for the half-year 24 38 (28,748) (181,518) (4,812) (212,489) (6,255) (56,431) (16,921) (39,350) (48,536) (75,939) (3,209) (674,208) (58,849) (146,398) (2,358) (273,731) 45,086 (34,000) (19,634) (31,754) (18,449) (2,303) (4,082) (546,472) (674,184) (546,434) - - (674,184) (546,434) (321,276) (321,276) (351,470) (351,470) (995,460) (897,904) (1.030) (1.030) (0.900) (0.900) Income tax (expense)/benefit Net profit/(loss) after tax for the half-year Items that have been or may be subsequently reclassified to profit or loss Translation reserve Total comprehensive income/(loss) for the half-year Loss per share Basic earnings per share/cents Diluted earnings per share/cents 30 June 2021 $ 3 The accompanying notes form part of these financial statements Page 15 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Note 30 June 2022 $ 31 December 2021 $ Assets Current assets Cash and cash equivalents Receivables Other Total current assets 5 2,411,429 90,474 99,090 2,600,993 1,045,851 20,933 2,429 1,069,213 6 7,645,861 7,645,861 10,246,854 7,215,084 4,812 7,219,896 8,289,109 Current liabilities Payables Provisions Total current liabilities 257,624 53,385 311,009 578,075 51,052 629,127 Total liabilities 311,009 629,127 9,935,845 7,659,982 28,009,685 (131,289) (17,942,551) 9,935,845 24,786,898 141,451 (17,268,367) 7,659,982 Non-current assets Exploration and evaluation Property plant and equipment Total non-current assets Total assets Liabilities Net assets Equity Contributed equity Reserves Accumulated losses Total equity 7 The accompanying notes form part of these financial statements Page 16 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY As at 31 December 2020 Transactions with owners in their capacity as owners of the Company Share issues Exerciseof options Share-based payments Share Capital Other Contributed Equity Translation Reserve Share-based Payments Other Reserves Accumulated Losses Equity $ $ $ $ $ $ $ 24,467,443 4,800 (263,684) 268,111 26,710 (16,190,976) 8,312,404 4,800 290,620 295,420 - (4,800) (4,800) - (351,470) (351,470) 18,449 18,449 - - (546,434) (546,434) 290,620 18,449 309,069 (546,434) (351,470) (897,904) As at 30 June 2021 24,762,863 - (615,154) 286,560 26,710 (16,737,410) 7,723,569 As at 31 December 2021 Transactions with owners in their capacity as owners of the Company Share issues Equity raising costs Exercise of options over ordinary shares Share-based payments 24,786,898 - (235,723) 350,464 26,710 (17,268,367) 7,659,982 Net loss for the period Other comprehensive income Total comprehensive income 3,221,277 (204,590) 206,100 3,222,787 - - (321,276) (321,276) 48,536 48,536 - - (674,184) (674,184) 3,221,277 (204,590) 206,100 48,536 3,271,323 (674,184) (321,276) (995,460) As at 30 June 2022 28,009,685 - (556,999) 399,000 26,710 (17,942,551) 9,935,845 Net loss for the period Other comprehensive income Total comprehensive income Newly consolidated entities The accompanying notes form part of these financial statements Page 17 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Half-Year Note 30 June 2022 $ 30 June 2021 $ Cash flows from/(used) in operating activities Payments to employees and suppliers Interest received Net cash flows from/(used) in operating activities (784,244) 24 (784,220) (700,361) 38 (700,323) Cash flows from/(used) in investing activities Exploration and evaluation expenditure Property plant and equipment Net cash flows from/(used) in investing activities (1,090,768) (1,090,768) (700,323) (700,323) Cash flows from financing activities Exercise of options over ordinary shares Share placement Ca