Accelerate Resources Limited
Annual Report 2023

Plain-text annual report

Accelerate Resources Limited ABN 33 617 821 771 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 CORPORATE Accelerate Resources Limited ABN: 33 617 821 771 Directors Mr Richard Hill Non-Executive Chairman Ms Yaxi Zhan Managing Director Dr Stephen Bodon Executive Director - Technical Mr Grant Mooney Non-Executive Director Company Secretary Ms Yaxi Zhan Registered and Principal Office Unit 4, 16 Ord Street West Perth, WA 6005 Telephone: (08) 6246 9663 Website www.ax8.com.au Securities Exchange Australian Securities Exchange (ASX Limited) Home Exchange Perth Securities Code: AX8 Share Registry Advanced Share Registry 110 Stirling Hwy Nedlands WA 6009 Australian Telephone: 1300 113 258 International Telephone: (618) 9389 8033 Website: advancedshare.com.au Auditor Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco, WA 6008 Telephone: +61 8 9426 0666 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 TABLE OF CONTENTS CHAIRMAN'S LETTER REPORT ON OPERATIONS DIRECTORS' REPORT AUDITOR'S INDEPENDENCE DECLARATION CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS DIRECTORS' DECLARATION INDEPENDENT AUDITOR'S REPORT ASX ADDITIONAL INFORMATION 2 4 22 36 37 38 39 40 41 68 69 75 1 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 CHAIRMAN’S LETTER Dear Shareholder, I am delighted to present to you Accelerate Resource’s (Accelerate) Annual Report for the year ending 30 June 2023. Over the past year, Accelerate has identified supply disruptions and metal shortfalls in the manganese and lithium markets and has continued to execute its high-grade manganese and lithium exploration strategies to help meet the future demand from the battery and steel markets. Importantly, these strategies are focused on the Western Australian Pilbara region, which is world-renowned for providing reliable, high quality and ethically sourced materials to the markets of the world. At the Woodie Woodie North Manganese project, the Company completed a total of ~7,000m drilling campaign this financial year with exceptional results. Drilling from Area 42 indicates broad, high-grade manganese zones with low iron intersections at shallow depths indicating the potential for substantial manganese resources to be delineated. We have also discovered new corridors of extensive and persistently mineralised trends of outcropping high grade manganese at surface which will be drilled over the coming year. As of the reporting date, the exploration program at Woodie Woodie is still ongoing, and we are on track to deliver an Inferred Mineral Resource Estimate for the Woodie Woodie North Manganese project by December 2023. As a key part of the Company’s critical minerals strategy, we continue to look for points of difference to add value to the traditional manganese business. This year the Company has entered into a binding Heads of Agreement with RedoxBlox, Inc, a USA-based energy storage technology company that owns the rights to the patented zero-carbon thermochemical energy storage system based on unique manganese and magnesium-based components. The collaboration with RedoxBlox will provide AX8 with the opportunity to test its products for the potential supply of high-value manganese for a novel and disruptive manganese-based energy storage technology. We have also leant into our lithium strategy and recently entered into binding agreements to acquire the high-grade Karratha Lithium Projects, comprising the Prinsep Lithium Project (100%) – an area of significant potential with a series of ‘walk-up’ drill targets – along with the Mt Sholl Project (100%), Mt Sholl East Project (75%) and Roebourne South Project (75%). 2 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 This transformational acquisition strongly positions the Company in the emerging Roebourne-Karratha lithium belt – which also plays host to Azure Minerals Ltd.’s exciting Andover lithium discovery and within 20km of the Karratha mining centre and its world-class infrastructure and supply chain. In step with our critical minerals strategy, the Company will continue to consider M&A opportunities that can complement our Karratha lithium Projects in the west Pilbara in the West Pilbara together with the expansion of its existing lithium footprint in the East Pilbara. In the meantime we look forward to reporting on an aggressive lithium exploration campaign over this coming year. On behalf of myself and my fellow directors, I wish to thank our shareholders for the support they have shown the Company during 2023. In particular to those existing shareholders that have continued to show their support through the recent capital raising and to those shareholders that have recently joined our register. We look forward to reporting on more Accelerate successes in 2024. Yours sincerely, Richard Hill Chairman 3 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 REPORT ON OPERATIONS During 2022-2023, Accelerate Resources Limited (“Accelerate” or “the Company”) has focused on its exploration projects located in Western Australia, which comprise (Figure 1): • Karratha Lithium Projects; • East Pilbara and Windi Lithium projects; • Garden Rock Lithium Project in the Murchison region, and; • Woodie Woodie North Manganese Project. Figure 1. Location of exploration projects Lithium Projects 4 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Karratha Lithium Projects Accelerate entered into binding Agreements in October 2023 to acquire the Karratha Lithium Projects, which include (Figure 2): • Prinsep Lithium Project (AX8 100%); • Mt Sholl Project (AX8 100%); • Mt Sholl East Project (AX8 75%), and; • Roebourne South Project (AX8 75%). The Karratha Lithium Projects are located within the emerging 40km long hard-rock lithium belt between the towns of Karratha and Roebourne in the West Pilbara and comprise circa 90km2 of prospective ground. This belt hosts the Andover discovery (ASX:AZS MCap ~ $1.2Bn ) with a number of other ASX listed companies actively exploring the belt (Figure 2). Figure 2. Location of the Karratha Lithium Projects. The Prinsep Lithium Project is the most advanced opportunity. “Walk up” drill targets have been identified with access to mining services, workforce and major infrastructure in the nearby mining centres of Karratha and Dampier. Recent field work by the Company identified two parallel zones of spodumene-rich, lithium-bearing pegmatite systems spanning the entire 2km width of the Prinsep tenement area. Several surface samples contain coarse 5 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 spodumene crystals, with preliminary rock chip assays returning up to 1.87% Li2O from the Southern Pegmatite System and 1.29% Li2O from the Northern Pegmatite System (Figure 3 and Table 1). These mineralised zones represent a new lithium discovery 15km from Karratha that have yet to be drill tested. Based on satellite image interpretation, the Southern Pegmatite System is less than 1km along strike from the Kobe lithium project (GreenTech Metals). Figure 3. Outcropping pegmatites and rock chip sample results from the Prinsep Lithium Project Table 1: Significant assay results from rock chip sampling of outcropping pegmatites at Prinsep. Rock chip sample ID AA319 AA312 AA323 AA321 AA317 AA326 Easting 480725 480244 480595 480654 480722 480670 Northing 7694124 7694089 7694306 7694328 7694106 7694344 % Li2O 1.87 1.55 1.29 1.05 1.03 1.01 6 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Previous exploration in the region, including the other project areas, has concentrated on gold, nickel and platinum group elements (PGE). Historical lithium exploration work has been very limited to negligible within the Roebourne South, Mt Sholl and Mt Sholl East tenement areas. However, recent initial field work by Accelerate during the due diligence process confirmed the presence of outcropping pegmatites within mafic schists at Mt Sholl East. Future field work is planned to systematically assess and delineate drill targets across the projects. A detailed drone photogrammetric survey is planned to assist with detailed mapping of the Prinsep and Mt Sholl East Project areas to identify pegmatite targets for rock chip sampling and mineralogical based geochemical fingerprinting to define and prioritise drill-ready targets. Drilling will be conducted as soon as possible following regulatory and heritage clearance approvals. See ASX Announcement dated 6 October 2023 for further details, including acquisition terms and conditions. East Pilbara Lithium Projects The East Pilbara Lithium Project is strategically situated within a region of active lithium exploration and discovery, encompassing the following prominent deposits (Figure 4): Global Lithium Resources' Archer deposit (ASX:GL1), Tabba Tabba Lithium Project (ASX:WC8), Wodgina Lithium Project (ASX:MIN), and the Pilgangoora Lithium mine (ASX:PLS). Historical data was collated during the first half of 2022, and whilst there has been significant historical exploration for diamonds, limited work focusing on lithium or lithium-related pathfinder geochemistry has been recorded. Several new exploration targets were identified following an encouraging initial reconnaissance sampling program and detailed photo interpretation during 2022. These initial targets were followed up with fieldwork along station tracks with ground traverses to sites of special interest in November 2022. Only about 35% of the prospective zone within E45/6279 and <5% within E45/6278 were visited, with initial encouraging observations comprising: • Discovery of four larger bodies of coalesced, overlapping, stacked pegmatite and aplitic veins and pods at different locations, with an additional 14 smaller pegmatites • Numerous small individual pegmatite veins and pods Field mapping and sampling of numerous pegmatite bodies and mixed aplitic to pegmatitic rocks in the Mount Creek and Sandy Creek tenements was completed in early 2023. Results for lithium and rare earth elements (REE) returned only background values apart from one tin (Sn) value of 33.7ppm and three cerium (Ce) assays over 100ppm (maximum 150ppm) from Mount Creek. The team also mapped five prominent structural features up to 4 km in strike length at Sandy Creek, which host several phases of aplite, pegmatite and quartz- carbonate veining considered prospective for lithium and REE mineralisation and with some gold potential (see ASX Announcement dated 13 March 2023). Post 30 June 2023, the Company has successfully expanded its lithium exploration project footprint to 395km2 with the application for four new tenements (E45/6416, E45/6604, E45/6615 and E45/6634), two of which 7 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 (E45/6416 and E45/6634) are subject to competing applications by other companies, with final ownership to be decided by ballot (Figure 4; see ASX Announcement dated 5 July 2023). Figure 4. Location of the Pilbara Lithium Project. Satellite image interpretation has identified several zones of quartzose felsic rocks that are prospective for lithium bearing pegmatites in two of the tenements (E45/6604 and E45/6615; Figure 5). Further target generation and fieldwork is planned, including rock chip sampling for mineralogical based geochemical fingerprinting to rank and prioritise pegmatite targets. In parallel to the field work, the Company will also fast- track the granting of tenements and associated permitting to advance exploration activities (see ASX Announcement dated 27 July 2023). 8 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Figure 5. Location of quartzose felsic rocks interpreted from satellite imagery that are possibly prospective for lithium bearing pegmatites. Windi Lithium Project The new Windi tenement application covers a portion of the 5-9km wide target zone along the SE edge of the Bonney Downs Monzogranite, which is recognised as being fertile for Li-Ta mineralisation. Figure 6 shows the known Li-Ta occurrences (source GSWA, MINEDEX data), the outline of the fertile Bonney Downs Monzogranite and the 4km wide target zone (5-9km from the granite margin) that represents the most likely zone to encounter Li-bearing pegmatites. The tenement covers nearly 10km of the prospective zone, which represents a substantial target (see ASX Announcement dated 6 September 2023). 9 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Figure 6. Location of the Windi Lithium Project area showing the lithium exploration target zone and extent of the Bonney Downs Monzogranite. Murchison Lithium Projects Garden Rock Lithium Project Accelerate's Garden Rock Lithium Project in the Murchison Region is located approximately 7km southeast of the town of Cue (Figure 7). The area is well known for gold occurrences in the greenstones, however it remains underexplored for pegmatite-hosted lithium mineralisation despite the existence of possible late granitoid intrusions. Initial indications from limited GSWA open-file geochemical data suggests that elevated lithium values within the Comet project area may be spatially associated with a late K-feldspar porphyry intrusion in the Garden Rock Monzogranite (Figure 7). This association may suggest that the late porphyritic phase of the monzogranite could be the source of the elevated lithium in the area (see ASX Announcement dated 6 September 2023). 10 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Figure 7. Garden Rock Lithium Project area showing location of elevated lithium values and extent of the Garden Rock Monzogranite. Woodie Woodie North Manganese Project The Woodie Woodie North Manganese Project is located 120km east of Marble Bar, 250km from Port Hedland, and approximately 70km north of the Woodie Woodie Manganese Mine (Figure 8). The project consists of two granted exploration licenses (E45/5978 and E45/5854) and two applications (E45/6508 and E45/6603) covering a total area of 307km2 within the Woodie Woodie Manganese Corridor, which is considered highly prospective for manganese deposits (Figure 9). 11 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Figure 8. Woodie Woodie North Manganese Project Location Figure 9. East Pilbara Manganese Projects location and tenements. 12 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Previous exploration in the northern area of the Woodie Woodie project, i.e. the Barra South area (Figure 11), included surface sampling, RC drilling (27,478m, 343 drill holes), geological mapping, aerial photography and photogrammetry, limited gravity and IP surveys, airborne magnetic and EM surveys, surface EM re- processing, metallurgical test work, mineralogical analysis, 3D geological modelling and resource analysis, Aboriginal heritage and ethnological surveys. Further south in the Braeside West area of the project (i.e. Gum Creek, Parsons Creek and Area 42 in Figure 11), limited historical exploration drilling, geological mapping and sampling of manganese outcrops was completed. The area is partially overlapped with VTEM geophysics, gravity and IP geophysical surveys. Exploration Activities by Accelerate: Woodie Woodie North Manganese Project The Company completed a total of four drilling campaigns over five key prospective Areas summarised in Table 2 below. Table 2. Summary of Phases 1 to 4 RC drilling for the period 1 July 2022 to 31 August 2023. Area Area 1 Area 3 Area 4 Area 5 Area 42 Total Drillholes 23 16 14 7 103 163 Metres 1,039 903 669 384 5,681 8,676 The Phase 1 RC drilling program was completed during the latter half of 2022 and was followed up by a second phase of drilling (Phase 2) focusing on Area 42. A regional heliborne mapping program was completed in January 2023 (Figure 10), resulting in the recognition of five fault-bounded corridors hosting manganese mineralisation (Figure 11). A further two phases of exploration drilling (Phases 3 and 4) were completed by the end of August 2023. Figure 10. Heli-supported mapping program in the Gum Creek Corridor at Area 51 showing extensive outcropping manganese for more than 200m along the ridge. 13 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 The Phase 1 drilling program focused on Barra North Area 1, Barra South Areas 3 and 4, and Area 42 (Figure 11), and was designed to provide an initial indication of the extent of manganese mineralisation and potential for extensions. The maiden drilling program resulted in the discovery of a well-developed manganese enriched zone localised along a significant NNW trending fault in drill hole WNRC017 at Area 42 (see ASX Announcements dated 25 August and 11 October 2022). Significant results from the drilling included: • Area 3 – northern strike extension of the Barra South deposit: o WNRC011 – 17 m @ 22% Mn & 15.7% Fe from 16m, incl. 9m @ 25.3% Mn from 15m • Area 42 – mineralisation along a prominent NNW trending fault: o WNRC017 – 6m @ 17.3% & 18.2% Fe from 13m o WNRC017 – 5m @ 18.6% Mn & 21.9% Fe from 40m o WNRC017 – 5m @ 19.4% Mn & 30.2% Fe from 82m Figure 11. Location of Woodie Woodie North Manganese Project and the five manganese corridors (shaded in grey) and exploration targets therein. 14 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 The Phase 2 drilling program followed up on results from the Phase 1 drilling to further define the extent of near-surface, high-grade manganese mineralisation and the deeper feeder zone identified from discovery holes WNRC017 and WNRC015 in Area 42 (Figure 12). Drilling was completed in November 2022. Significant results from the drilling included: • Chris’s Ridge o WNRC038 – 7m @ 31.4% Mn (19% Fe) from surface, incl. 1m @ 42.2% Mn • Dale’s Patch: o WNRC054 – 5m @ 33.7% Mn (13.4% Fe) from surface, incl. 1m @ 50.8% Mn from 1m o WNRC059 – 8m @ 30.8% Mn (2.7% Fe) from 13 m, incl. 1m @ 50.7% Mn from 18m • Nathan’s Flat o WNRC063 – 9m @ 22% Mn (8.7% Fe) from 4m, incl. 2m @ 34% Mn (5.8% Fe) from 9 m o WNRC074 – 6m @ 28.4% Mn (9.9% Fe) from 3m, incl. 3m @ 37.4% Mn (9.1% Fe) from 5m • Dirk’s Valley o WNRC076 – 8m @ 18.3% Mn (2.2% Fe) from 14m A geological cross section of the Dale’s Patch prospect showing significant intercepts is shown in Figure 13. See ASX Announcement dated 9 February 2023 for further details. Figure 12. Location of prospects in Area 42. 15 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Figure 13. Long section through the Dale's Patch prospect at Area 42 showing significant intercepts. AX8 commenced a third phase (Phase 3) of exploration and resource definition drilling in May 2023. The Phase 3 program was completed in June 2023 and comprised extensional and infill drilling with nominal spacings of 20m to 40m targeting strike and depth extensions of the manganese mineralisation at Area 42. A total of 40 holes for 2,308m of RC drilling was completed, with 17 holes intersecting significant visual manganese mineralisation (Figure 14). Significant drilling results included: • Dale’s Patch: o WNRC080 – 12m @ 26.8% Mn (6.6% Fe) from 11m, incl. 6m @ 39.8% Mn from 12m o WNRC081 – 10m @ 18.7% Mn (18.6% Fe) from 29m • Nathan’s Flat: o WNRC091 – 8m @ 23.9% Mn (11.5% Fe) from 3m • Drew’s Find: o WNRC109 – 3m @ 12% Mn (1.9% Fe) from 36m • Drape’s Hill: o WNRC115 – 10m @ 20.2% Mn (9.8% Fe) from 8m Geological cross sections showing significant intercepts are shown in Figures 15 and 16. Further details can be found in ASX Announcement dated 7 August 2023. 16 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Figure 14. Photo of RC chips from drill hole WNRC089 at Nathan’s Flat in Area 42. Figure 15. Interpretive cross section of Dale’s Patch showing significant intercepts. 17 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Figure 16. Interpretive cross section of Nathan’s Flat showing significant intercepts. Post 30 June 2023, a fourth phase of drilling (Phase 4) was completed by the end of August 2023 and comprised extensional and resource definition drilling at Barra North and South (Areas 1, 3 and 4) and Area 42. Infill drilling at Area 5 in the Gum Creek Corridor (Figure 11) was completed to assess the resource potential. A total of 2,105m of RC drilling (45 holes) was completed with significant extensions of mineralisation confirmed in the Barra South Corridor. Significant results from the drilling included: • Area 42 – Chris's Ridge: o WNRC162 – 12m @ 25.7% Mn (12.6% Fe) from surface, incl. 4m @ 33.7% Mn from 5m • Barra South – Area 3: o WNRC140 – 6m @ 22.8% Mn (32.7% Fe) from 16m o WNRC145 – 16m @ 22% Mn (11.5% Fe) from 25m, incl. 6m @ 32.8% Mn from 27m o WNRC149 – 11m @ 18.6 Mn (17.4% Fe) from 24m o WNRC146 – 18m @ 14.6% Mn (24.9% Fe) from 32m A geological cross section of Barra South – Area 3 showing significant intercepts is shown in Figure 17. Further details can be found in ASX Announcement dated 4 October 2023. 18 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Figure 17. Interpretive cross section of Barra South - Area 3 showing significant intercepts. Results from the Phase 1 to 4 drilling campaign and the historical drilling database will be utilised for the development of JORC-2012 Mineral Resource Estimates (MREs) at Barra North (Area 1) and South (Areas 3 and 4), and Area 42. The MREs are scheduled to be completed by 2023 year end (see ASX Announcement dated 16 May 2023). High Purity Manganese Sulphate Monohydrate (HPMSM) test work program Accelerate’s Critical Minerals strategy seeks to generate additional value from the Woodie Woodie manganese resources through development of higher value products that deliver superior returns to the Company and shareholders. On 5 April 2023, the Company announced that its High Purity Manganese Sulphate Monohydrate (HPMSM) test program had achieved results of 99.9% manganese sulphate purity using samples from Area 42 in the Woodie Woodie North Manganese Project. 19 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 For further information please refer to ASX announcement dated 5 April 2023. Corporate Activities Capital Raising 2023 Capital raising On 6 October 2023, the Company announced that it had received firm commitments to raise $3.6 million (before costs) from a range of professional and sophisticated investors by way of a placement. Proceeds from the placement, together with existing cash, will be applied primarily to exploration activities within the newly acquired, highly prospective Karratha Lithium Projects, as well as progressing the East Pilbara Lithium Project and Woodie Woodie North Manganese Project. General working capital and costs of the placement will also be included. On 11 November 2022, the Company announced that it had received firm commitments to raise $3 million (before costs) from sophisticated investors via a placement. Proceeds from the Placement had been applied primarily to exploration at the Company’s Woodie Woodie North Manganese Project and as well as progressing the Lithium strategy. Sale of Currie Rose Shares On 14 April 2023, the Company announced the sale of its 8,333,333 shares in Currie Rose, the Company received ~$450,000 in net proceeds. Junior Minerals Exploration Incentive (JMEI) Credits The Australian Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme encourages investment in mineral exploration companies that carry out “Greenfields” mineral exploration in Australia, by allowing such companies to generate a tax incentive by choosing to give up a portion of their losses from “Greenfields” mineral exploration expenditure for distribution to Australian residents who acquired new shares during the relevant eligibility period. The shares must be equity interests for the purposes of debt and equity tax rules. In January 2023, the Company distributed JMEI credit of $220,000 as Tax credit to the Company’s eligible shareholders. Successful application on the WA Government Co-funded Exploration Incentive Scheme (EIS) In May 2023 the Company received confirmation being one of the successful applicants of the WA Government Co-funded Exploration Incentive Scheme (EIS) with up to $150,000 co-funding to enhance the planned diamond drilling program at Woodie Woodie North Manganese project. The co-funding from the WA Government EIS program is also a strong endorsement of the Company’s exploration work at the Woodie Woodie North project. 20 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Accelerate enters partnership with US-based energy storage technology group RedoxBlox As announced on 14 March 2023, the Company has entered into a binding Heads of Agreement with RedoxBlox, Inc. to investigate strategic co-operation opportunities for the ongoing material supply, commercialisation and deployment of RedoxBlox’s proprietary manganese-based thermochemical energy storage technology using manganese products from the Company’s Woodie Woodie North Project. The collaboration is structured through a phased approach, with initial efforts focused on AX8’s testing and supply of manganese materials and providing results of comminution and metallurgical test work to enable RedoxBlox to complete the necessary product qualification test work in the US. RedoxBlox will provide updates on the results of its ongoing demonstration plant test work and any resulting changes in its manganese and magnesium product specifications and volumes. TAMBELLUP KAOLIN PROJECT, WA In 2021, Accelerate executed a binding agreement with Vytas Resources Pty Ltd ("Vytas") and completed the sale of Tambellup project. Vytas is a technology Material company with a strong focus on Green Hydrogen, and Ultra High Purity Quartz (UHPQ). Vytas seeks to capitalise on this opportunity in the market by producing 99.999% SiO2 (5N), 99.998% SiO2 (4N8), 99.997% SiO2 (4N7) and 99.99% SiO2 (4N) products. Vytas is working through a process with a number of different off-take parties for off-take and project funding. In August 2023, Vytas successfully completed a $1.5mil seed raise from sophisticated inverters and institution investors. The Company intends to be listed on ASX listed in H1 2024. Accelerate Resources currently holds 27,120,000 shares, which is equal to a ~27% interest in Vytas pre-IPO. 21 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 DIRECTOR’S REPORT The Directors of Accelerate Resources Limited (the ‘Company’) and its controlled entities (the ‘Group’) present their Report for the financial year ended 30 June 2023. DIRECTORS The following were Directors of the Company at any time during the reporting period and up to the date of this report, unless otherwise indicated, were Directors for the entire period. Director Mr Richard Hill Ms Yaxi Zhan Mr Grant Mooney Dr Stephen Bodon* Title Non-Executive Director Managing Director Non-Executive Director Executive Director - Technical Appointment Date 3 July 2020 7 March 2017 1 June 2017 1 February 2022 Resignation Date - - - - * appointed Non-Executive Director 1 February 2022, appointed Executive Director – Technical 1 August 2023 COMPANY SECRETARY Ms Yaxi Zhan – appointed 2 March 2023 Ms Deborah Ho - resigned 2 March 2023 PRINCIPAL ACTIVITIES The Group is an Australian mineral exploration company, focusing on Manganese, lithium and other minerals exploration. RESULTS The loss of the Group for the financial year ended 30 June 2023 was $2,040,114 (2022: $1,489,738). SIGNIFICANT CHANGES IN STATE OF AFFAIRS There are no significant changes in the state of affairs of the Group. EVENTS SUBSEQUENT TO BALANCE DATE On 3 July 2023, the Company announced its Non-Executive Director Dr Steve Bodon took up a new role as the Company’s Executive Director – Technical, effective 1 August 2023. On 25 August 2023, the Company issued 1,000,000 fully paid ordinary shares as consideration for the Public Relation Services provided by SparkPlus. On 2 September 2023, the Company announced the expiry of 5,000,000 options exercisable at $0.06. On 6 October 2023, the Company announced a placement by issuing up to 180,500,000 new fully paid ordinary shares at an issue price of $0.02 per share to raise $3.6 million. 22 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 There are no other matters or circumstances that have arisen since 30 June 2022 to the date of this report that have significantly affected, or may significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in future financial years. LIKELY DEVELOPMENTS Information on likely developments in the operations of the Group and the expected results of operations have not been included in this report because the Directors believe it would be likely to result in unreasonable prejudice to the Group. DIVIDEND No dividends have been paid or declared during the financial year ended 30 June 2023, nor have the Directors recommended that any dividends be paid. ENVIRONMENTAL REGULATION The Directors believe that the Group has, in all material respects, complied with all particular and significant environmental regulations relevant to its operations. PARTICULARS OF DIRECTORS AND COMPANY SECRETARY CURRENT DIRECTORS Richard Hill Non-Executive Chairman (Appointed Non-Executive Director 3 July 2020, appointed Non-Executive Chairman 20 November 2020) Qualifications and Experience Mr Hill is a qualified geologist and solicitor with over 25 years’ experience in the resources sector. In addition to his corporate, commercial and fundraising roles, Mr Hill has practical geological experience in a range of commodities worldwide Interest in Shares and Options 9,132,653 Ordinary Shares 3,000,000 options exercisable at $0.0957, expiring on 27 November 2024 1,500,000 options exercisable at $0.0593, expiring on 16 November 2024 Directorships held in other listed entities in the past three years Non-Executive Chairman at New World Resources Limited (31 October 2017 to the present) Non-Executive Director at Sky Metals Ltd (20 June 2019 to the present) Yaxi Zhan Managing Director and Company Secretary (Appointed Managing Director 7 March 2017 and Company Secretary 2 March 2023) Qualifications and Experience Ms Zhan has over 16 years of experience in the resource industry. She has in capital raising, mergers and acquisitions and project worked 23 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 development with Sinosteel, Norilsk Nickel and within the Australian listed junior exploration sector. Interest in Shares and Options 4,810,009 Ordinary Shares 3,000,000 Options exercisable at $0.0957, expiring on 27 November 2024 2,000,000 options exercisable at $0.0593, expiring on 16 November 2024 Directorships held in other listed entities in the past three years Nil Stephen Bodon Executive Director - Technical (Appointed Non-Executive Director 1 February 2022, appointed Executive Director - Technical 1 August 2023) Qualifications and Experience Dr Bodon has a PhD in geology with 30 years’ experience in mining and upstream oil & gas. He is a successful senior business leader with broad in exploration, production and business management experience development. He previously held senior leadership roles for a number of large international organisations, such as Anglo American and Sasol and is currently General Manager Higginsville Operations for Karora Resources. Interest in Shares and Options 1,000,000 Options exercisable at $0.059, expiring on 1 February 2025 Directorships held in other listed entities in the past three years Nil Grant Mooney Non-Executive Director (Appointed Non-Executive Chairman 1 June 2017, appointed Non-Executive Director 20 November 2020) Qualifications and Experience Mr Mooney is the principal of Perth-based corporate advisory firm Mooney & Partners, specialising in corporate compliance administration to public companies. He has extensive experience in the areas of corporate and project management, capital raisings, mergers and acquisitions and corporate governance. Interest in Shares and Options 2,016,115 Ordinary Shares 3,000,000 Options exercisable at $0.0957, expiring on 27 November 2024 1,000,000 options exercisable at $0.0593, expiring on 16 November 2024 24 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Directorships held in other listed entities in the past three years Non-Executive Chairman at Riedel Resources Limited (31 October 2018 to the present) Non-Executive Chairman at Aurora Labs Limited (25 March 2020 to the present) Non-Executive Director at Carnegie Clean Energy Limited (19 February 2008 to the present) Non-Executive Director at Gibb River Diamonds Limited (13 October 2008 to the present) Non-Executive Director at Talga Group Ltd (20 February 2014 to the present) Non-Executive Director at Greenstone Resources limited (29 November 2002 to 19 August 2022) Non-Executive Director at SRJ Technologies Limited (2 June 2020 to 17 January 2023) Company Secretary (Resigned 2 March 2023) Deborah Ho Qualifications and Experience Ms Ho has over six years of experience in company secretarial, corporate compliance and financial accounting matters. She has acted as Company Secretary to a number of ASX listed and private companies. She holds a Bachelor of Commerce from Curtin University and is an Associate Member of the Governance Institute of Australia. DIRECTORS' MEETINGS The Directors attendances at Board meetings held during the year were: Richard Hill Yaxi Zhan Stephen Bodon Grant Mooney Board Meetings Number eligible to attend 6 6 6 6 Number attended 6 6 6 6 The Company does not have any remuneration, nomination or audit committees, these functions are performed by the Board. The Board also approved four (4) circular resolutions during the year ended 30 June 2023 which were signed by all Directors of the Company. 25 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 REMUNERATION REPORT (AUDITED) This report details the nature and amount of remuneration for each key management personnel of the Group, and for the executives receiving the highest remuneration. REMUNERATION POLICY The remuneration policy of Accelerate Resources Limited has been designed to align key management personnel objectives with shareholder and business objectives by providing a fixed remuneration component that provides cost effective services to the Group at an early stage of its development. The Board of Accelerate Resources Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best key management personnel to run and manage the Group, as well as create goal congruence between directors, executives and shareholders. The Board’s policy for determining the nature and amount of remuneration for key management personnel of the Group is as follows: • • • The remuneration policy, setting the terms and conditions for the key management personnel, was developed and approved by the Board. All key management personnel receive a base salary or fee appropriate to the skills and responsibility of the role. The Board reviews key management personnel packages annually by reference to the Group’s performance, executive performance and comparable information from industry sectors. The performance of key management personnel is measured against criteria agreed annually with each executive and is based predominantly on the forecast development of the Group’s projects. Any bonuses or incentives must be linked to predetermined performance criteria. The Board may, however, exercise its discretion in relation to approving incentives, bonuses and options. Any changes must be justified by reference to measurable performance criteria. The policy is designed to attract the highest calibre of executives and reward them for performance that results in long-term growth in shareholder wealth. Key management personnel are also entitled to participate in the employee share and option arrangements. All remuneration paid to key management personnel is valued at the cost to the Group and expensed. Shares given to key management personnel are valued as the difference between the market price of those shares and the amount paid by key management personnel. Options are valued using the Black-Scholes methodology. The Board policy is to remunerate Non-Executive Directors at market rates for time, commitment and responsibilities. The Board determines payments to the Non-Executive Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to approval by shareholders at the Annual General Meeting. Fees for Non-Executive Directors are not linked to the performance of the Group. However, to align directors’ interests with shareholder interests, the Directors are encouraged to hold shares in the Company and are able to participate in the employee option plan. 26 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 PERFORMANCE-BASED REMUNERATION It is the Group’s intention when appropriate to include performance-based remuneration as a component of management remuneration, and this was not deemed necessary in the year under review. COMPANY PERFORMANCE, SHAREHOLDER WEALTH AND DIRECTOR AND EXECUTIVE REMUNERATION The following table shows gross income, profits (losses) and dividends for the last 5 years as a listed entity (incorporated on 7 March 2017), as well as the share price at the end of the respective financial years. As highlighted above, the Group currently does offer any variable remuneration incentive plans or bonus schemes to Directors and, as such, there are no performance related links to the existing remuneration policies. Revenue Loss after income tax EBITDA EBIT Share price at year-end Basic loss per share (cents per share) Dividends paid 2023 $ - (2,308,322) (2,297,535) (2,308,322) 0.02 (0.59) 2022 $ 1,500 (1,221,530) (1,219,327) (1,221,530) 0.031 (0.66) 2021 $ 125,535 (3,374,055) (3,368,028) (3,374,055) 0.031 (2.37) 2020 $ 66,827 (1,505,847) (1,487,631) (1,514,134) 0.023 (2.66) 2019 $ 46,036 (1,715,102) (1,711,883) (1,713,998) 0.03 (3.60) - - - - - KEY MANAGEMENT PERSONNEL REMUNERATION POLICY The Board's policy for determining the nature and amount of remuneration key management for the Group is as follows: The remuneration structure for key management personnel is based on a number of factors, including length of service, particular experience and skills of the individual concerned, and overall performance of the Group. The contracts for service between the Company and key management personnel are on a continuing basis. Upon retirement key management personnel are paid employee benefit entitlements accrued to date of retirement. SERVICE AGREEMENTS The following Directors had contracts in place with the Company during the financial year as detailed below: Richard Hill, Non-Executive Director (Appointed Non-Executive Director 3 July 2020, appointed Non-Executive Chairman 20 November 2020) • Confirmation of Appointment dated 3 July 2020 with no termination date; o 4 million shares @ deemed $0.023 per share in lieu of cash for services to 31 December 2020. o Fees of $40,000 per annum from 1 January 2021, increased to $60,000 per annum (from 1 March 2021). o 2 million performance rights vesting upon weighted average price of share equals or exceeds $0.05 for 15 consecutive trading days. o 2 million performance rights vesting upon ASX announcement of acquisition of new exploration project with significant exploration and/or exploitation potential. 27 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 o There will be no payment upon termination. Yaxi Zhan, Managing Director and Company Secretary (Appointed Managing Director 7 March 2017 and Company Secretary 2 March 2023) • Confirmation of Appointment dated 7 March 2017 with no termination date; o Fees of $150,000 per annum (post-IPO), amended to $110,000 per annum (1 May 2019 – 29 February 2020); amended to $150,000 per annum (from 1 March 2020); amended to $180,000 per annum (from September 2021); amended to $216,000 per annum (from March 2023); amended to $220,000 per annum (from June 2023). o There will be no payment upon termination other than the statutory requirements as per the employment agreement. Grant Mooney, Non-Executive Director (Appointed Non-Executive Chairman 1 June 2017, appointed Non- Executive Director 20 November 2020) • Confirmation of Appointment dated 1 June 2017 with no termination date; o Director fees of $50,000 per annum (post-IPO); amended to $30,000 per annum (1 May 2019 – 29 February 2020); amended to $50,000 per annum (from 1 March 2020); amended to $45,000 (from 20 November 2020); o There will be no payment upon termination. Stephen Bodon, Executive Director – Technical (Appointed Non-Executive Director 1 February 2022, appointed Executive Director - Technical 1 August 2023) • Confirmation of Appointment dated 1 February 2022 with no termination date; o Fees of $45,000 per annum; amended to $300,000 per annum (from August 2023). o There will be no payment upon termination other than the statutory requirements as per the employment agreement. 28 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 DETAILS OF REMUNERATION Compensation of Key Management Personnel Remuneration Short-term Benefits Post- Employment Benefits Long-term Benefits Share-Based Payments Cash, salary and fees $ Annual leave $ Superannuation $ Long Service Leave $ Shares $ Options / Performance Rights $ Total $ FY2023 Directors Richard Hill Yaxi Zhan1 Stephen Bodon 2 Grant Mooney FY2022 Directors Richard Hill Yaxi Zhan1 Stephen Bodon 2 Grant Mooney 151,563 192,333 46,100 51,000 440,996 100,625 175,000 18,750 45,000 339,375 - - - - - - - - - - - 20,195 4,841 4,725 29,761 - 17,500 1,875 4,500 23,875 - - - - - - - - - - - - - - - - - - - - - - - - - 41,638 55,517 20,276 27,758 145,189 151,563 212,528 50,941 55,725 470,757 142,263 248,017 40,901 77,258 508,439 1 Appointed Managing Director on 7 March 2017 and took on additional role as the Company Secretary on 2 March 2023 2 Appointed Non-Executive Director on 1 February 2022, appointed Executive Director – Technical on 1 August 2023 The proportion of remuneration linked to performance and the fixed proportion are as follows: Directors Richard Hill Yaxi Zhan Stephen Bodon Grant Mooney Fixed At Risk - STI At Risk - LTI 2023 2022 2023 2022 2023 2022 100% 100% 100% 100% 100% 100% 100% 100% - - - - - - - - - - - - - - - - Cash bonuses granted as compensation for the current financial year No cash bonuses were granted during the year ended 2023 (2022: nil). 29 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Other transactions with related parties Directors Director’s fees paid to Braeside Minerals Pty Ltd, a company in which Richard Hill is a director Consulting fees paid to Braeside Minerals Pty Ltd, a company in which Richard Hill is a director Consulting fees paid to Mooney & Partners Pty Ltd, a company in which Grant Mooney is a director 2023 $ 2022 $ 60,000 60,000 91,563 40,625 6,000 - Loans from key management personnel As at 30 June 2023, there were no outstanding amounts due to key management personnel (2022: nil). Use of remuneration consultants During the financial year ended 30 June 2023, the Group did not engage the services of an independent remuneration consultant to review its remuneration for Directors, key management personnel and other senior executives. Voting and comments made at the company's Annual General Meeting ('AGM') At the 2022 Annual General Meeting, 100% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2022. The Company did not receive any specific feedback at the AGM regarding its remuneration practices. SHARE-BASED PAYMENTS This section only refers to those shares and options issued as part of remuneration. As a result, they may not indicate all shares and options held by a Director or other Key Management Personnel. Shares No shares were issued to Directors as part of compensation during the year ended 30 June 2023 (2022: nil). Options No options were issued to Directors as part of compensation during the year ended 30 June 2023. During the year ended 30 June 2022, the Company issued 4,500,000 unlisted options exercisable at $0.0593 each, expiring 16 November 2024 to Directors of the Company. The Black-Scholes option pricing model was used to value the options and the following table lists the inputs to the model used for the valuation of the options: 30 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Grant Date 16/11/2021 Share Price at Grant Date $0.048 The share-based payment expense recognised in relation to options over ordinary shares granted, and the value of options exercised and lapsed for directors as part of compensation during the year ended 30 June 2022 are set out below: Risk-free Interest Rate 1.02% Fair Value per Option $0.0278 Expected Volatility 100.0% Exercise Price $0.0593 Expiry Date 16/11/2024 Share-based payment expense of options granted during the year $ Value of options exercised during the year $ Value of options lapsed during the year $ Remuneration consisting of options for the year 2022 % 41,638 55,517 27,758 - - - - - - 29% 22% 36% Directors Richard Hill Yaxi Zhan Grant Mooney During the year ended 30 June 2022, the Company issued 1,000,000 unlisted options exercisable at $0.059 each, expiring 1 February 2025 to a Director of the Company. The Black-Scholes option pricing model was used to value the options and the following table lists the inputs to the model used for the valuation of the options: Grant Date 01/02/2022 Expiry Date 01/02/2025 Exercise Price $0.059 Share Price at Grant Date $0.038 Expected Volatility 100.0% Risk-free Interest Rate 1.23% Fair Value per Option $0.0203 The share-based payment expense recognised in relation to options over ordinary shares granted, and the value of options exercised and lapsed for directors as part of compensation during the year ended 30 June 2022 are set out below: Share-based payment expense of options granted during the year $ Value of options exercised during the year $ Value of options lapsed during the year $ Remuneration consisting of options for the year 2022 % Directors Stephen Bodon No options held by Directors of the Company were exercised during the year ended 30 June 2023 (2022: nil). 20,276 50% - - Performance Rights No Director performance rights were granted, exercised, sold or lapsed during the year ended 30 June 2023 (2022: nil). 31 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 DIRECTORS’ INTERESTS Shareholding The number of shares in the Company held during the financial year by each director and other members of key management personnel of the Group, including their personally related parties, is set out below: Opening Balance No. Granted as Compensation No. Additions No. Disposals / Other No. Closing Balance No. 30 June 2023 Directors Richard Hill Yaxi Zhan Stephen Bodon Grant Mooney Total 9,132,653 4,810,009 - 2,016,115 15,958,777 - - - - - - - - - - Opening Balance No. Granted as Compensation No. Additions No. 30 June 2022 Directors Richard Hill 8,577,097 Yaxi Zhan 4,254,453 Stephen Bodon - Grant Mooney 1,460,559 Total 14,292,109 1 Shares issued for participation in the Company’s Placement raising 555,5561 555,5561 - 555,5561 1,666,668 - - - - - Disposals / Other No. - - - - - - - - - - 9,132,653 4,810,009 - 2,016,115 15,958,777 Closing Balance No. 9,132,653 4,810,009 - 2,016,115 15,958,777 Option Holding The following table discloses the movement in Directors’ and Key Management Personnel’s Options during the year. Opening Balance No. 4,500,000 5,000,000 1,000,000 4,000,000 14,500,000 30 June 2023 Richard Hill Yaxi Zhan Stephen Bodon Grant Mooney Total Options Granted No. Options Exercised No. - - - - - - - - - - Options Lapsed Closing Balance No. - - - - - No. 4,500,000 5,000,000 1,000,000 4,000,000 14,500,000 Vested During the Year No. Vested and Exercisable at 30 June 23 No. 4,500,000 - 5,000,000 - 1,000,000 - 4,000,000 - - 14,500,000 Not Vested at 30 June 23 No. - - - - - 32 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 Opening Balance No. Options Granted No. Options Exercised No. 3,000,000 1,500,000 3,000,000 2,000,000 - 1,000,000 3,000,000 1,000,000 9,000,000 5,500,000 - - - - - Options Lapsed Closing Balance No. - - - - - No. 4,500,000 5,000,000 1,000,000 4,000,000 14,500,000 Vested During the Year No. Vested and Exercisable at 30 June 22 No. 4,500,000 - 5,000,000 - 1,000,000 - - 4,000,000 - 14,500,000 Not Vested at 30 June 22 No. - - - - - 30 June 2022 Richard Hill Yaxi Zhan Stephen Bodon Grant Mooney Total The following table discloses the movement in Directors’ and Key Management Personnel’s Performance Rights during the year. Performance Rights Granted No. Performance Rights Exercised No. Opening Balance No. Performance Rights Lapsed No. Closing Balance No. - - - - - - - - - - - - - - - - Performance Rights Granted No. Performance Rights Exercised No. Opening Balance No. Performance Rights Lapsed No. Closing Balance No. - - - - - - - - - - - - - - - - End of Remuneration Report Vested During the Year No. Vested and Exercisable at 30 Jun 22 No. Not Vested at 30 June 22 No. - - - - - - - - - - - - Vested During the Year No. Vested and Exercisable at 30 Jun 21 No. Not Vested at 30 June 21 No. - - - - - - - - - - - - - - - - - - - - 30 June 2023 Richard Hill Yaxi Zhan Stephen Bodon Grant Mooney Total 30 June 2022 Richard Hill Yaxi Zhan Stephen Bodon Grant Mooney Total 33 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 SHARES UNDER OPTION Unissued ordinary shares of the Company at the date of this report are as follows: Grant Date 23/11/2020 16/11/2021 01/02/2022 22/04/2022 28/12/2022 27/01/2023 27/01/2023 Expiry Date 27/11/2024 16/11/2024 01/02/2025 22/10/2024 28/12/2024 27/01/2025 01/12/2024 Exercise Price $0.0957 $0.0593 $0.059 $0.10 $0.05 $0.05 $0.05 Number under option 9,000,000 4,500,000 1,000,000 10,000,000 58,571,376 2,250,000 1,000,000 At the date of this report, there were 1,500,000 performance rights under issue. No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the company or of any other body corporate. PROCEEDINGS ON BEHALF OF THE COMPANY No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Group or the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings. No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of the Corporations Act 2001. DIRECTORS’ INDEMNITIES The Group has indemnified the directors and executives of the Group for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. During the financial year, the Group paid a premium in respect of a contract to insure the directors and executives of the Group against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. AUDITOR’S INDEMNITIES The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Group or any related entity against a liability incurred by the auditor. During the financial year, the Group has not paid a premium in respect of a contract to insure the auditor of the Group or any related entity. CORPORATE GOVERNANCE The Group’s Appendix 4G is released to ASX on the same day the Annual Report is released. Accelerate Resources Limited’s Corporate Governance Statement, and the Company’s Policies, Charters and Procedures, can be all found on the Company’s website. 34 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NON-AUDIT SERVICES There were no non-audit services provided during the current and previous financial year by the auditor. The Board has established certain procedures to ensure that the provision of non-audit services are compatible with, and do not compromise the external auditor's independence requirements of the Corporations Act 2001 for the following reasons: • All non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and • None of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Group, acting as advocate for the Group or jointly sharing economic risks and rewards. OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF AUDITORS There are no officers of the company who are former partners of Hall Chadwick WA Audit Pty Ltd . AUDITOR INDEPENDENCE A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. AUDITOR Hall Chadwick WA Audit Pty Ltd were appointed auditors in accordance with section 327 of the Corporations Act 2001, to perform the year-end audit, replacing RSM Australia Partners. This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors Yaxi Zhan Managing Director 29 September 2023 35 To the Board of Directors, AUDITOR’S CORPORATIONS ACT 2001 INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE As lead audit director for the audit of the financial statements of Accelerate Resources Limited for the financial year ended 30 June 2023, 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 audit; and • any applicable code of professional conduct in relation to the audit. Yours Faithfully HALL CHADWICK WA AUDIT PTY LTD CHRIS NICOLOFF CA Director Dated this 29th day of September 2023 Perth, Western Australia ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 30 June 2023 Revenue Other income Expenses Corporate and professional expenses Director and employee benefits Administration expenses Other expenses Depreciation Exploration expenditure Impairment of exploration expenditure Research and development Share-based payments expenses Loss before income tax expense Income tax expense Loss before other comprehensive income Other comprehensive income Items that will not be subsequently reclassified to profit or loss: Changes in fair value of financial assets – fair value OCI Consolidated 2023 $ Consolidated 2022 $ Note - - (293,266) (444,803) (190,122) (212,164) (10,787) (51,020) (1,000,000) (33,612) (72,548) (2,308,322) - (2,308,322) 1,500 1,500 (234,081) (341,987) (244,496) (136,599) (2,203) (118,440) - - (145,224) (1,221,530) - (1,221,530) 5 14 7 268,208 (268,208) Total comprehensive loss (2,040,114) (1,489,738) Earnings per share for (loss) from continuing operations attributable to the ordinary equity holders of the Group Basic and diluted earnings per share (cents) 13 (0.59) (0.66) The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. 37 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2023 ASSETS Current Assets Cash and cash equivalents Other current assets Asset held for sale Total Current Assets Non-Current Assets Exploration and evaluation expenditure Other non-current assets Plant and equipment Total Non-Current Assets Total Assets LIABILITIES Current Liabilities Trade and other payables Provision Total Current Liabilities Total Liabilities Net Assets Equity Issued capital Reserves Accumulated losses Total Equity Consolidated 2023 $ Consolidated 2022 $ Note 3 4 5 5 4 6 8 9 10 11 2,037,164 153,444 - 2,190,608 4,499,391 1,236,261 108,660 5,844,312 2,313,957 112,351 1,000,000 3,426,308 2,121,929 1,131,223 11,426 3,264,578 8,034,920 6,690,886 320,768 100,464 421,232 266,167 63,857 330,024 421,232 330,024 7,613,688 6,360,862 16,169,011 2,795,555 (11,350,878) 7,613,688 12,948,619 2,454,799 (9,042,556) 6,360,862 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. 38 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2023 Issued Capital $ Note Accumulated Reserves $ Losses Total Equity $ $ 9,090,949 2,367,354 (7,821,026) 3,637,277 - - - - (268,208) (1,221,530) - (1,221,530) (268,208) (268,208) (1,221,530) (1,489,738) Consolidated Balance as at 1 July 2021 Loss after income tax Other comprehensive income Total comprehensive loss for the period Shares issued Share issue costs Consideration shares issued Performance rights issued Options issued Balance as at 30 June 2022 10 10,11 5,10 11 11 4,044,000 (186,330) - - - 12,948,619 - - 34 145,189 210,430 2,454,799 - - - - - (9,042,556) 4,044,000 (186,330) 34 145,189 210,430 6,360,862 Consolidated Loss after income tax Other comprehensive income Total comprehensive loss for the period - - - - 268,208 (2,308,322) - (2,308,322) 268,208 268,208 (2,308,322) (2,040,114) Shares issued Share issue costs Performance rights issued Director and employee options issued Options issued Balance as at 30 June 2023 10 10,11 11 11 11 3,428,400 (208,008) - - - - 14,500 17,612 - - - - 3,428,400 (208,008) 14,500 17,612 - 16,169,011 40,436 2,795,555 - (11,350,878) 40,436 7,613,688 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 39 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 30 June 2023 Consolidated 2023 $ Consolidated 2022 $ Note Cash Flows from Operating Activities Payments to suppliers and employees Interest received Other income received Cash flow boost Net cash (outflows) from operating activities 15 Cash Flows from Investing Activities Purchase of plant and equipment Payments for exploration and evaluation expenditure Amounts advanced to external party Cash acquired from asset acquisition Proceeds from sale of investment Net cash (outflows) from investing activities 6 4 5 Cash Flows from Financing Activities Proceeds from issue of shares Capital raising cost Net cash inflow from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year (1,116,974) - - - (1,116,974) (108,021) (2,291,543) - - 447,753 (1,951,811) (793,885) - 1,500 - (792,385) (8,175) (1,031,593) - - - (1,039,768) 3,000,000 (208,008) 2,791,992 3,100,000 (186,330) 2,913,670 (276,793) 1,081,517 2,313,957 1,232,440 3 2,037,164 2,313,957 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. 40 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements and notes represent those of Accelerate Resources Limited (the ‘Company’) and its controlled entities (‘Group’). The financial report was authorised for issue by the Board on 29 September 2023. The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Basis of Preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). In accordance with the Corporations Act 2001, these financial statements present the results of the Group. Supplementary information about the Company is disclosed in Note 21: Parent Entity Disclosures. Except for cash flow information, the financial report has been prepared on an accruals basis and is based on historical costs, modified where applicable, by the measurement at fair value of selected financial assets and financial liabilities. Cost is based on the fair values of the consideration given in exchange for assets. The financial statements have been presented in Australian dollars (AUD), which is the Group’s functional and presentation currency. Going Concern The financial statements have been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and discharge of liabilities in the normal course of business. As disclosed in the financial statements, the Group incurred a loss of $2,040,114 (30 June 2022: $1,489,738) and had net cash outflows from operating and investing activities of $1,116,974 (30 June 2022: $792,385) and $1,951,811 (30 June 2022: $1,039,768) respectively for the year ended 30 June 2023. As at that date, the Group had net current assets of $1,769,376 (30 June 2022: $3,096,284). The ability of the Group to continue as a going concern is principally dependent upon the ability of the Group to secure funds by raising additional capital from equity markets and managing cash flows in line with available funds. 41 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Management have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet its commitments and working capital requirements for the 12 month period from the date of this report. The ability of the Group to continue as a going concern is dependent on the success of the fund raising and the Group generating cashflows from operating activities and managing costs in line with available funds. Based on the cash flow forecasts and other factors referred to above, the Directors are satisfied that the going concern basis of preparation is appropriate. In particular, given the Group’s history of raising capital to date, the Directors are confident of the Group’s ability to raise additional funds as and when they are required. Should the Group not achieve the matters set out above, there is material uncertainty as to whether the Group will continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. The full year financial report does not contain any adjustments relating to the recoverability and classification of recorded assets or to the amounts or classification of recorded assets or liabilities that might be necessary should the Group not be able to continue as a going concern. The Directors believe that it is reasonably foreseeable that the Group will continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report after consideration of the following factors: • The Group has the ability to curtail administrative, discretionary exploration and overhead cash outflows as and when required. New or amended Accounting Standards and Interpretations adopted During the year ended 30 June 2023, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Group and effective for the year-end reporting period beginning on or after 1 July 2022. Any new or amended standards and interpretations that are not yet mandatory have not been early adopted. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2023. None of the new or amended Accounting Standards and Interpretations, most relevant to the Group, are expected to have a material impact on the Group’s financial statements. 42 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) a) Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the consolidated statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial position. b) Other Assets Other receivables are recognised at amortised cost, less any provision for impairment. c) Asset Held for Sale Assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continued use. They are measured at the lower of their carrying amount and fair value less costs of disposal. For assets to be classified as held for sale, they must be available for immediate sale in their present condition and their sale must be highly probable. An impairment loss is recognised for any initial or subsequent write down of the fair value less costs of disposal. A gain is recognised for any subsequent increases in fair value less costs of disposal of an asset, but not in excess of any cumulative impairment loss previously recognised. Assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of assets held for sale continue to be recognised. Assets classified as held for sale are presented separately on the face of the consolidated statement of financial position, in current assets. d) Exploration and Evaluation Assets Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the period in which the decision to abandon the area is made. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. 43 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis. Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have been determined on the basis that the restoration will be completed within one period of abandoning the site. e) Plant and Equipment Recognition and measurement Items of plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The gain or loss on disposal of an item of plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of plant and equipment and is recognised net within other income / other expenses in profit or loss. Depreciation Depreciation is based on the cost of an asset less its residual value. Depreciation is recognised in profit or loss on a diminishing value basis over the estimated useful lives of each part of an item of plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful lives for the current and comparative periods are as follows: Office equipment 3 -10 years Field equipment 5 years Computer equipment 3 years Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. 44 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Impairment of Non-Financial Assets f) At each reporting date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. An asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. g) Trade and Other Payables These amounts represent liabilities for goods and services provided to the entity prior to the end of the financial period and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. h) Leases The Group as a lessee For any new contracts entered into on or after 1 July 2022 the Group considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’. To apply this definition the Group assesses whether the contract meets three key evaluations which are whether: • The contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the Group The Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract The Group has the right to direct the use of the identified asset throughout the period of use. The Group assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use. • • Measurement and recognition of leases as a lessee At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the statement of financial position. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease payments made in advance of the lease commencement date (net of any incentives received). 45 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group also assesses the right-of-use asset for impairment when such indicators exist. At the commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Group’s incremental borrowing rate. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments arising from options reasonably certain to be exercised. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in- substance fixed payments. When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero. The Group has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss on a straight-line basis over the lease term. On the statement of financial position, right-of-use assets have been included in plant and equipment (except those meeting the definition of investment property) and lease liabilities have been included in trade and other payables. Current and non-current classification i) Assets and liabilities are presented in the statement of financial position based on current and non- current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. 46 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Issued capital j) Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. k) Earnings Per Share The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss after income tax attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated by dividing the profit or loss after income tax attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for the effects of all dilutive potential ordinary shares, which comprise share options granted to employees. l) Revenue Interest Interest revenue is recognised as interest accrues using the effective interest method. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. m) Employee Benefits Wages and salaries Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled wholly within 12 months of the reporting date are recognised in employee provisions in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Superannuation The amount charged to the profit and loss in respect of superannuation represents the contributions paid or payable by the Group to the employee’s superannuation funds. Employee Benefits on-costs Employee benefit on-costs, including payroll tax, are recognised when paid or payable by the Group. Share-based payments Equity-settled and cash-settled share-based compensation benefits are provided to employees. 47 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is determined by reference to the share price. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows: • • during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the expired portion of the vesting period. from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the reporting date. All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to settle the liability. Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. 48 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. Income Taxes n) Income tax expense or revenue comprises current and deferred tax. Current and deferred taxes are recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities are recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences, the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and associates and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those rates which are enacted or subsequently enacted for each jurisdiction. Deferred tax assets are recognised for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. 49 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) o) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as a current asset or liability in the statement of financial position. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which is disclosed as operating cash flows. p) Segment Reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that related to transactions with any of the Group’s other components. A geographical segment is engaged in providing products or services within a particular economic environment and is subject to risks and returns that are different from those of segments operating in other economic environments. The Board (Chief Operating Decision Makers “CODM”) is responsible for the allocation of resources to operating segments and assessing their performance. q) Principles of Consolidation Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. 50 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance. Fair value measurement r) When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. 51 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Share-based payment transactions The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share- based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. 2. CRITICIAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS Exploration and evaluation costs Exploration and evaluation costs have been capitalised and are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Key judgements are applied in considering the costs to be capitalised which includes determining expenditures directly related to these activities and allocating overheads between those that are expensed and capitalised. 3. CASH AND CASH EQUIVALENTS Cash at bank 4. OTHER ASSETS Current Accounts receivable GST receivable Deposit Prepayments Note Consolidated 2023 $ 2,037,164 2,037,164 Consolidated 2022 $ 2,313,957 2,313,957 Consolidated 2023 $ - 83,912 46,000 23,532 153,444 Consolidated 2022 $ - 48,582 46,000 17,769 112,531 52 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 4. OTHER ASSETS (CONTINUED) Non-Current Other asset – Currie Rose Resources Inc 1 Other asset – Vytas Resources Pty Ltd 2 7 Consolidated 2023 $ - 1,236,261 1,236,261 Consolidated 2022 $ 281,363 849,860 1,131,223 1 The Company announced on 30th April 2021, that it had completed its Due Diligence on the Exploration Program and elected to convert its expenditure to 8,333,333 shares in Currie Rose. During the year to 30 June 2022, the Company received confirmation that the shares had been issued. During the year to 30 June 2023, the Company sold 8,333,333 shares in Currie Rose. 2 Pursuant to the binding term sheet entered into with Vytas Resources Pty Ltd (“Vytas”) on 2 September 2021, Accelerate made available A$250,000 to Vytas in order to fund the work program on the Tambellup and Midwest Silica Sand Projects, preparing for Vytas’ initial public offering and contributions to working capital. The Company announced on 30 November 2021, that the transaction had completed and Accelerate had been issued with 27,120,000 shares, equal to 33% interest in Vytas. 5. EXPLORATION AND EVALUATION EXPENDITURE Exploration and evaluation expenditure – Western Australia Exploration and evaluation expenditure – Western Australia Opening balance Additions 1 Impairment 2 Closing balance 1 Consolidated 2023 $ 4,445,391 4,445,391 Consolidated 2022 $ 2,121,929 2,121,929 2,121,929 3,377,462 (1,000,000) 4,499,391 912,356 1,209,573 - 2,121,929 In July 2022, the Company issued 7,000,000 fully paid ordinary shares as deferred consideration for the Halcyon transaction, the deemed issue price was $0.0552 per share. In June 2023, the Company issued 2,000,000 fully paid ordinary shares as consideration for the acquisition of exploration tenements E45/5942 and E45/5907, the deemed issue price was $0.021 per share. 53 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 5. EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED) 2 In June 2021, the Company announced that it had entered into a Heads of Agreement, granting an option to unlisted company Stunalara Metals Limited (“Stunalara”), to acquire 100% of the legal and beneficial interest in the Company’s Mt Read Project in Tasmania. The Mt Read Project comprises exploration license EL06/2013. Upon exercising of the option, the Company will receive fully paid ordinary shares in Stunalara to the value of $1,000,000 at a deemed issue price equal to the price per share offered to the public under Stunalara’s proposed initial public offering or the 1-month VWAP price of an RTO vehicle prior to a deal being announced for the listing via a reverse takeover (back door listing). The parties mutually agreed to terminate the Heads of Agreement as of 25 October 2022 due to unfavourable IPO market conditions. As a result of the above, an impairment charge of $1,000,000 has been recognised during the year-end to 30 June 2023. Asset held for sale – Mt Read Project 6. PLANT AND EQUIPMENT Plant and equipment - at cost - accumulated depreciation Plant and equipment – movements Opening balance Additions Depreciation Closing balance 7. FINANCIAL ASSETS – FAIR VALUE OCI At beginning of year Changes in fair value - sale of financial assets Other adjustment At end of year Consolidated 2023 $ - Consolidated 2022 $ 1,000,000 Consolidated 2023 $ Consolidated 2022 $ 135,363 (26,703) 108,660 11,426 108,021 (10,787) 108,660 Consolidated 2023 $ 281,363 (268,363) (13,000) - 27,342 (15,916) 11,426 5,454 8,175 (2,203) 11,426 Consolidated 2022 $ 549,571 (268,208) - 281,363 54 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 7. FINANCIAL ASSETS – FAIR VALUE OCI (CONTINUED) Financial assets – fair value OCI, consist of investments in TSX-V listed company. During the year ended 30 June 2023, all investments were disposed of. 8. TRADE AND OTHER PAYABLES Trade payables Accruals Other payables Consolidated 2023 $ 230,257 35,460 55,051 320,768 Consolidated 2022 $ 216,687 42,815 6,665 266,167 Trade creditors, excluding related party payables, are expected to be paid on 30-day terms. 9. PROVISION Employee annual leave provision Consolidated 2023 $ 100,464 100,464 Consolidated 2022 $ 63,857 63,857 55 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 10. ISSUED CAPITAL Ordinary shares on issue, fully paid Consolidated 30-Jun-23 No. 379,601,756 Consolidated Consolidated Consolidated 30-Jun-22 $ 12,948,619 30-Jun-22 No. 263,458,899 30-Jun-23 $ 16,169,011 Reconciliation of Movement in Issued Capital Closing balance at 30 June 2021 Placement – tranche 1 Placement – tranche 2 Shares to Finders Fee 1 Acquisition of Volcanic (Note 5) Acquisition of Braeside West and Ripon Hills2 Acquisition of Barramine (Note 5) Share Issue Cost Closing balance at 30 June 2022 Deferred consideration for Halcyon transaction (Note 5) Placement – Tranche 1 Placement – Tranche 2 Acquisition of E45/5942 and E45/5907 (Note 5) Share Issue Cost Closing balance at 30 June 2022 Shares No. 156,847,794 38,899,428 47,211,677 2,000,000 500,000 Date Issue Price $ 20-Sep-21 16-Nov-21 16-Nov-21 16-Nov-21 0.036 0.036 0.048 0.072 Amount $ 9,090,949 1,400,379 1,699,621 96,000 36,000 8,000,000 01-Dec-21 0.039 312,000 21-Apr-22 0.05 10,000,000 - 263,458,899 500,000 (186,330) 12,948,619 7,000,000 04-Jul-22 0.0552 386,400 40,568,834 66,574,023 21-Nov-22 28-Dec-22 2,000,000 09-Jun-22 0.028 0.028 0.021 - 379,601,756 1,135,927 1,864,073 42,000 (208,008) 16,169,011 * Total value of share capital issued during the year ended 30 June 2023 amounted to $3,428,400. 1 On 16 November 2021, 2,000,000 fully paid ordinary shares were issued to advisors pursuant to finders’ fee agreements, of which 1,500,000 shares are voluntarily restricted to 15 November 2022. 2 On 1 December 2021, 8,000,000 fully paid ordinary shares were issued for the exercise of the option to acquire the Mineral Rights on the Ripon Hills and Braeside West Projects in the East Pilbara Manganese Field. Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Group in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital. On a show of hands, every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. 56 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 10. ISSUED CAPITAL (CONTINUED) Capital risk management The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it may continue to provide returns for shareholders and benefits for other stakeholders. The Group’s capital includes ordinary share capital and financial liabilities, supported by financial assets. Due to the nature of the Group’s activities, being mineral exploration, it does not have ready access to credit facilities, with the primary source of funding being equity raisings. Accordingly, the objective of the Group’s capital risk management is to balance the current working capital position against the requirements of the Group to meet exploration programmes and corporate overheads. This is achieved by maintaining appropriate liquidity to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as required. The Group is not subject to any externally imposed capital requirements. Cash and cash equivalents Trade and other receivables (excludes deposit) Trade and other payables Working capital position 11. RESERVES Options reserve Performance rights reserve Fair value reserve Consolidated 2023 $ 2,037,164 107,444 (320,768) 1,823,840 Consolidated 2022 $ 2,313,957 66,351 (266,167) 2,114,141 Consolidated 2023 $ 2,781,021 14,534 - 2,795,555 Consolidated 2022 $ 2,722,973 34 (268,208) 2,454,799 Option reserve Options issued carry no dividend or voting rights. When exercisable, each option is convertible to one ordinary share. 57 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 11. RESERVES (CONTINUED) Closing balance at 30 June 2021 Options issued to Directors 1 Options issued to Directors 2 Options issued to acquire Barramine3 Options expired 4 Closing balance at 30 June 2022 Options issued to Shareholders 5 Options issued to Placement Advisor 6 Options issued to Consultants of the Company7 Options expired 8 Closing balance at 30 June 2023 No. of Options 33,000,000 4,500,000 1,000,000 10,000,000 (5,000,000) 43,500,000 53,571,376 5,000,000 3,250,000 (14,000,000) 43,500,000 $ 2,367,354 124,913 20,276 210,430 - 2,722,973 - 20,276 210,430 - 2,722,973 1 On 16 November 2021, the Company issued 4,500,000 unlisted options exercisable at $0.0593 each, expiring 16 November 2024, to Directors of the Company. 2 On 1 February 2022, the Company issued 1,000,000 unlisted options exercisable at $0.059 each, expiring 1 February 2025, to a Director of the Company. 3 On 22 April 2022, the Company issued 10,000,000 unlisted options exercisable at $0.10 each, expiring 22 October 2024 in relation to the Barramine asset acquisition. 4 On 14 February 2022, 5,000,000 unlisted options exercisable at $0.25 each expired. 5 On 28 December 2022, the Company issued 53,571,376 unlisted options exercisable at $0.05 each, expiring 28 December 2024 as free attaching options to participants of the Placement. 6 On 28 December 2022, the Company issued 5,000,000 unlisted options exercisable at $0.05 each, expiring 28 December 2024 to the Placement Advisor. 7 On 27 January 2023, the Company issued 2,250,000 unlisted options exercisable at $0.05 each, expiring 27 January 2025 and 1,000,000 unlisted options exercisable at $0.05 each, expiring 1 December 2024 to employees and consultants of the Company. 8 On 27 November 2022 and 9 June 2023, 9,000,000 and 5,000,000 unlisted options exercisable at $0.0959, $0.0957 and $0.06 each expired. 58 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 11. RESERVES (CONTINUED) Summary of options granted as at 30 June 2023 are as follows: Exercise Price $0.06 $0.06 Balance at Start of Year Granted Grant Date Expiry Date 28/05/2020 09/06/2023 30/08/2020 02/09/2023 31/10/2020 27/11/2022 $0.0959 23/11/2020 27/11/2024 $0.0957 23/11/2020 27/11/2022 $0.0957 16/11/2021 16/11/2024 $0.0593 $0.059 01/02/2022 01/02/2025 $0.10 22/04/2022 22/10/2024 $0.05 28/12/2022 28/12/2024 $0.05 28/12/2022 28/12/2024 $0.05 27/01/2023 27/01/2025 $0.05 27/01/2023 01/12/2024 5,000,000 5,000,000 1,500,000 9,000,000 7,500,000 4,500,000 1,000,000 10,000,000 - - - - - - - - - 53,571,376 5,000,000 - 2,250,000 - 1,000,000 - 43,500,000 61,821,376 Balance at Start of Year Granted Summary of options granted as at 30 June 2022 are as follows: Exercise Price Grant Date Expiry Date $0.25 18/01/2018 12/02/2022 $0.06 28/05/2020 09/06/2023 30/08/2020 02/09/2023 $0.06 31/10/2020 27/11/2022 $0.0959 23/11/2020 27/11/2024 $0.0957 23/11/2020 27/11/2022 $0.0957 16/11/2021 16/11/2024 $0.0593 $0.059 01/02/2022 01/02/2025 $0.10 22/04/2022 22/10/2024 - 5,000,000 - 5,000,000 - 5,000,000 - 1,500,000 - 9,000,000 - 7,500,000 4,500,000 - - 1,000,000 - 10,000,000 33,000,000 15,500,000 Exercised - - - - - - - - - - - - - Exercised - - - - - - - - - - Balance at Expired / End of Year Cancelled - (5,000,000) 5,000,000 - - (1,500,000) 9,000,000 - - (7,500,000) 4,500,000 - - 1,000,000 - 10,000,000 - 53,571,376 5,000,000 - 2,250,000 - 1,000,000 - (14,000,000) 91,321,376 Balance at Expired / End of Year Cancelled - (5,000,000) 5,000,000 - 5,000,000 - 1,500,000 - 9,000,000 - 7,500,000 - 4,500,000 - - 1,000,000 - 10,000,000 (5,000,000) 43,500,000 The weighted average exercise price of the outstanding options as at 30 June 2023 was $0.06 (30 June 2022: $0.08). The weighted average remaining contractual life of options outstanding at 30 June 2023 was 1.39 years (30 June 2022: 1.67 years). 59 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 11. RESERVES (CONTINUED) Performance rights reserve Performance rights issued carry no dividend or voting rights. When exercisable, each performance right is convertible to one ordinary share. Closing balance at 30 June 2021 Performance rights issued to a Consultant 1 Closing balance at 30 June 2022 Performance rights issued to a Consultant 2 Closing balance at 30 June 2023 No. of Rights - 500,000 500,000 1,000,000 1,500,000 $ - 34 34 14,500 14,534 1 On 27 June 2022, the Company granted 500,000 performance rights expiring 1 October 2023 to a Consultant. The performance rights were valued at $0.032 per right, being the share price on the grant date, which reflects fair value in line with AASB 2 Share-Based Payment. 2 On 27 January 2023, the Company granted 1,000,000 performance rights expiring 1 December 2023 to a Consultant. The performance rights were valued at $0.029 per right, being the share price on the grant date, which reflects fair value in line with AASB 2 Share-Based Payment. 12. SHARE-BASED PAYMENTS On 28 December 2022, the Company issued 5,000,000 unlisted options exercisable at $0.05 each, expiring 28 December 2024, to Placement Advisors of the Company. On 27 January 2023, the Company issued 2,250,000 unlisted options exercisable at $0.05 each, expiring 27 January 2025, to Employees and Consultants of the Company. On 27 January 2023, the Company issued 1,000,000 unlisted options exercisable at $0.05 each, expiring 1 December 2024, to a Consultant of the Company. The Black-Scholes option pricing model was used to value the options and the following table lists the inputs to the model used for the valuation of the options: Grant Date 28/12/2022 27/01/2023 27/01/2023 Expiry Date 28/12/2024 27/01/2025 01/12/2024 Exercise Price $0.05 $0.05 $0.05 Share Price at Grant Date $0.023 $0.029 $0.029 Expected Volatility 100.0% 100.0% 100.0% Risk-free Interest Rate 3.42% 3.17% 3.17% Fair Value per Option $0.0081 $0.0117 $0.0111 60 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 12. SHARE BASED PAYMENTS (CONTINUED) On 27 January 2023, the Company granted 1,000,000 performance rights expiring 1 December 2023 to a Consultant. The performance rights were valued at $0.029 per right, being the share price on the grant date, which reflects fair value in line with AASB 2 Share-Based Payment. 13. EARNINGS PER SHARE Loss after income tax (used in calculating both basic and diluted loss per share) Basic loss per share (cents) Diluted loss per share (cents) Weighted average number of ordinary shares used in calculating basic and diluted EPS 14. INCOME TAX EXPENSE Consolidated 2022 $ Consolidated 2021 $ (1,489,738) (3,374,055) Cents (0.66) (0.66) Cents (2.37) (2.37) Number Number 224,488,940 142,274,032 A reconciliation between the income tax expense and the product of accounting profit before income tax multiplied by the Group’s applicable income tax rate is as follows: Consolidated 2023 $ Consolidated 2022 $ Loss before income tax (2,308,322) (1,221,530) Prima facie benefit on operation loss at 25% (2022: 25%) Non-allowable expenditure Non-assessable income Temporary differences not brought to account as a deferred tax asset / (liability) Tax losses not brought to account as a deferred tax asset Income tax benefit (577,080) 18,137 - (305,383) 36,313 - (329,065) (202,902) 888,008 - 471,971 - Unrecognised tax losses 11,960,939 8,254,843 61 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 14. INCOME TAX EXPENSE A potential deferred tax asset, attributable to tax losses carried forward, amounts to approximately $747,559 (2022: $515,928) and has not been brought to account at reporting date because the directors do not believe it is appropriate to regard realisation of the deferred tax asset as probable at this point in time. This benefit will only be obtained if: • • • • • the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the loss incurred; the Group continues to comply with the conditions for deductibility imposed by law; and no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the loss incurred. the Group continues to comply with the conditions for deductibility imposed by law; and no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the loss incurred. 15. CASH FLOW INFORMATION Reconciliation of cash flow from operating activities with loss after income tax: Loss after income tax Add / (deduct) non-cash items: Share based payment expense Depreciation Impairment of exploration expenditure Loss on sale of investments Changes in assets and liabilities: Other current assets Trade and other payables Provisions Cash outflows from operating activities Consolidated 2023 $ Consolidated 2022 $ (2,308,322) (1,221,530) 72,548 10,787 1,000,000 92,679 (31,955) 10,682 36,607 (1,116,974) 145,224 2,203 90,590 - (31,023) 197,790 24,361 (792,385) 62 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 16. RELATED PARTY TRANSACTIONS a) Key Management Personnel Compensation Short-term employee benefits – Cash, salary and fees Post-employment benefits Share-based payment Consolidated 2023 $ 440,996 29,761 - 470,757 Consolidated 2022 $ 339,375 23,875 145,189 508,439 b) Transactions with Related Parties There were no other transactions with related parties other than through Key Management Personnel Compensation above. c) Amount owing from / (to) Related Parties There were no amounts owing from / (to) related parties at 30 June 2022 (2021: nil). 16. AUDITOR’S REMUNERATION Audit services Audit or review of the financial statements 17. COMMITMENTS Consolidated 2023 $ Consolidated 2022 $ 28,109 28,109 23,000 23,000 Operating lease commitments consists of various mining tenement leases in Western Australia (Woodie Woodie North, Comet, Pilbara Lithium). The Group has annual minimum expenditure commitments of $473,000 (2022: $224,000 excluding commitments of $65,000 relating to the Mt Read Cobalt Project which is being met by Stunalara Metals Limited under a Heads of Agreement). 18. OPERATING SEGMENTS The Group has identified its operating segments based on the internal reports that are used by the Board (the chief operating decision makers) in assessing performance and in determining the allocation of resources. The operating segments are identified by the Board based on the phase of operation within the mining industry. 63 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 18. OPERATING SEGMENTS (CONTINUED) For management purposes, the Group has organised its operations into one reportable segment on the basis of stage of development as follows: • Exploration and evaluation assets, which includes assets that are associated with the determination and assessment of the existence of commercial economic reserves. The Board as a whole will regularly review the identified segments in order to allocate resources to the segment and to assess its performance. During the year ended 30 June 2021 and 30 June 2022, the Group had no development assets. The Board considers that it has only operated in one segment, being mineral exploration. The Group is domiciled in Australia. Another income from external customers are only generated from Australia. No income was derived from a single external customer. 19. CONTROLLED ENTITIES The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-owned subsidiaries in accordance with the accounting policy described in Note 1. Volcanic Resources Pty Ltd Attstar Pty Ltd Country of Incorporation Australia Australia Principal Activities Exploration Exploration Ownership 2023 (%) 100 1 100 2 Ownership 2022 (%) 100 1 100 2 1 Volcanic Resources Pty Ltd was acquired on 27 November 2020. Refer to Note 5 for more details on the acquisition. 2 Attstar Pty Ltd was acquired on 15 February 2022. Refer to Note 5 for more details on the acquisition. 64 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 20. PARENT ENTITY DISCLOSURES The following information has been extracted from the books and records of the legal parent, being Accelerate Resources Limited and has been prepared in accordance with Accounting Standards. Financial Position Total current assets Total non-current assets Total assets Total current liabilities Total liabilities Net assets Issued capital Reserves Accumulated losses Total equity Financial Performance Loss for the year Other comprehensive income Total comprehensive loss 2023 $ 2022 $ 2,190,608 5,844,312 8,034,920 421,232 421,232 7,613,688 16,169,011 2,795,555 (11,350,878) 7,613,688 3,426,308 3,264,578 6,690,886 330,024 330,024 6,360,862 12,948,619 2,454,799 (9,042,556) 6,360,862 (2,308,322) 268,208 (2,040,114) (1,221,530) (268,208) (1,489,738) 20. PARENT ENTITY DISCLOSURES (CONTINUED) The Parent Entity has no capital commitments and has not entered into a deed of cross guarantee nor are there any contingent liabilities, apart from that mentioned in Note 24, at the year end. 21. FINANCIAL RISK MANAGEMENT The Group has exposure to the following risks from their use of financial instruments: credit risk; liquidity risk; and • • • market risk. 65 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 21. FINANCIAL RISK MANAGEMENT (CONTINUED) This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Management monitors and manages the financial risks relating to the operations of the Group through regular reviews of the risks. Credit risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is spread amongst approved counterparties. Credit risk related to balances with banks and other financial institutions is managed by the board. The board’s policy requires that surplus funds are only invested with counterparties with a Standard & Poor’s rating of at least AA-. All of the Group’s surplus funds are invested with AA- Rated financial institutions. The Group does not have any material credit risk exposure to any single receivable or Group of receivables under financial instruments entered into by the Group. The credit risk for counterparties included in cash and cash equivalents as at 30 June 2022 is detailed below: Financial assets: Cash and cash equivalents Consolidated 2023 $ Consolidated 2022 $ 2,037,164 2,037,164 2,313,957 2,313,957 Liquidity risk The responsibility with liquidity risk management rests with the Board of Directors. The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate working capital is maintained. The Group’s policy is to ensure that it has sufficient cash reserves to carry out its planned exploration activities over the next 12 months. The Group’s financial instrument liabilities of $320,768 are expected to be paid within one year. 66 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 NOTES TO THE FINANCIAL STATEMENTS 21. FINANCIAL RISK MANAGEMENT (CONTINUED) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. Interest rate risk The Group does not have any exposure to interest rate risk as there were no external borrowings at 30 June 2022 (2021: nil). Interest bearing assets are all short-term liquid assets and the only interest rate risk is the effect on interest income by movements in the interest rate. There is no other material interest rate risk. Fair values The net fair values of financial assets and financial liabilities approximate their carrying value. The methods for estimating fair value are outlined in the relevant notes to the financial statements. 22. EVENTS SUBSEQUENT TO BALANCE DATE On 3 July 2023, the Company announced its Non-Executive Director Dr Steve Bodon took up a new role as the Company’s Executive Director – Technical, effective 1 August 2023. On 25 August 2023, the Company issued 1,000,000 fully paid ordinary shares as consideration for the Public Relation Services provided by SparkPlus. On 2 September 2023, the Company announced the expiry of 5,000,000 options exercisable at $0.06. On 6 October 2023, the Company announced a placement by issuing up to 180,000,000 new fully paid ordinary shares at an issue price of $0.02 per share to raise $3.6 million. There are no other matters or circumstances that have arisen since 30 June 2023 to the date of this report that have significantly affected, or may significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in future financial years. 23. CONTINGENT LIABILITIES AND ASSETS At 30 June 2023, there was contingent consideration payable of 8,000,000 ordinary shares relating to the acquisition of Halcyon Resources Pty Ltd on 18 November 2019. These contingent consideration shares are payable based on Accelerate Resources announcing on ASX platform upon shipment(s) of 50,000 tons of Kaolin Clay or derived product from the Project (E70/4969). - There were no other contingent assets at 30 June 2023 (2022: nil). 67 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 DIRECTORS’ DECLARATION In the opinion of the Directors of the Group: a) The financial statements and notes set out on the preceding pages are in accordance with the Corporations Act 2001 including: i ii Giving a true and fair view of the financial position of the Group as at 30 June 2023 and of its performance for the financial year ended on that date; and Complying with Australian Accounting Standards (including the Australian Accounting Interpretations), the Corporations Regulations 2001 and other mandatory professional reporting requirements; and There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; The financial statements and notes are in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. b) c) The Directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of the Directors made pursuant to section 295(5)(a) of Corporations Act 2001. Yaxi Zhan Managing Director 29 September 2023 Perth 68 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ACCELERATE RESOURCES LIMITED Report on the Audit of the Financial Report Opinion We have audited the financial report of Accelerate Resources Limited (“the Company”) and its subsidiaries (“the Consolidated Entity”), which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion: a. the accompanying financial report of the Consolidated Entity is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2023 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 1. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Consolidated Entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty Related to Going Concern We draw attention to Note 1 in the financial report which indicates that the Consolidated Entity incurred a loss of $2,308,322 during the year ended 30 June 2023. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. Our opinion is not modified in this respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed the Key Audit Matter Exploration and Evaluation Expenditure The carrying amount of exploration and evaluation Our procedures included, amongst others: expenditure as at 30 June 2023 was $4,449,391. Exploration and evaluation expenditure is a key audit matter due to: • The significance of the balance to the Company’s financial position; • The level of in evaluating management’s application of the judgement required requirements of AASB 6 Exploration for and Evaluation of Mineral Resources (“AASB 6”). AASB 6 accounting is an standard industry specific the requiring application of significant judgements, estimates and industry knowledge. This for includes requirements specific • Assessed management’s determination of its areas of interest for consistency with the definition in AASB 6. This involved analysing the tenements in which the Company holds an interest and the exploration programmes planned for those tenements. • Agreed the terms of acquisition agreements and on a sample basis corroborated rights to tenure to government registries and relevant agreements as applicable; For each area of interest, we assessed the Company’s rights to tenure by corroborating to government registries and evaluating agreements in place with other parties as applicable. expenditure to be capitalised as an asset and subsequent requirements which must • Considered the activities in each area of interest to date and assessed the planned be complied with for capitalised expenditure to continue to be carried as an asset; and future activities for each area of interest by evaluating budgets. The assessment of impairment of exploration and evaluation expenditure being inherently difficult. • Substantiated a sample of expenditure by agreeing to supporting documentation. • We assessed each area of interest for one or more of the following circumstances that may indicate impairment of the capitalised expenditure: o the licenses for the right to explore expiring in the near future or are not expected renewed; o substantive expenditure for further to be exploration in the specific area is neither budgeted or planned Key Audit Matter How our audit addressed the Key Audit Matter o decision or intent by the Company to discontinue activities in the specific area of interest due to lack of commercially viable quantities of resources; and o data indicating that, although a development in the specific area is the carrying likely to proceed, amount of the exploration asset is unlikely to be recovered in full from successful development or sale. • Assessed the appropriateness of the disclosures included in the relevant notes to the financial statements. Other Information The directors are responsible for the other information. The other information comprises the information included in the Consolidated Entity’s annual report for the year ended 30 June 2023, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial report complies with International Financial Reporting Standards. In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Consolidated Entity’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Consolidated Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Consolidated Entity to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2023. The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. Auditor’s Opinion In our opinion, the Remuneration Report of Accelerate Resources Limited, for the year ended 30 June 2023, complies with section 300A of the Corporations Act 2001. HALL CHADWICK WA AUDIT PTY LTD CHRIS NICOLOFF CA Director Dated this 29th day of September 2023 Perth, Western Australia ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 ASX ADDITIONAL INFORMATION SCHEDULE OF MINING TENEMENTS HELD AT THE REPORT DATE Status Location Beneficial Percentage Interest Tenement Number E20/908 E20/970 E21/213 E21/214 E20/965 Granted Western Australia Granted Western Australia Granted Western Australia Granted Western Australia Granted Western Australia Project Comet Comet Comet Comet Comet Comet Comet E20/1000 Application Western Australia E21/217 Application Western Australia Wooleen Project E09/2757 Application Western Australia Wooleen Project E59/2775 Application Western Australia Wooleen Project E59/2628 Granted Western Australia Wooleen Project E59/2629 Application Western Australia Wooleen Project E59/2630 Granted Western Australia Wooleen Project E59/2632 Application Western Australia Wooleen Project E59/2646 Application Western Australia 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Woodie Woodie North E45/5854 Granted Western Australia 100% Mn and Iron Right Woodie Woodie North E45/5088 Granted Western Australia 100% Mn and Iron Right Woodie Woodie North E45/5978 Granted Western Australia Woodie Woodie North E45/6100 Application Western Australia Woodie Woodie North E45/5907 Application Western Australia Woodie Woodie North E45/5942 Application Western Australia Woodie Woodie North E45/6508 Application Western Australia Pilbara Lithium E45/6278 Application Western Australia Pilbara Lithium E45/6279 Application Western Australia Pilbara Lithium E45/6280 Application Western Australia Pilbara Lithium E45/66416 Application/Ballot Western Australia Mt Read EL 6/2013 Granted Tasmania 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 74 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 ASX ADDITIONAL INFORMATION Additional information required by the ASX Limited Listing Rules not disclosed elsewhere in this Annual Report is set out below. The information is current as at 26 September 2023. SHAREHOLDINGS The issue capital of the Company as at 26 September 2023 is 380,601,756 ordinary fully paid shares. As at 26 September 2023 there are no substantial holders. Distribution of Shareholders 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over No. of Shares No. of Holders 5,020 32 97,551 26 97 855,269 414 17,727,737 367 361,916,17 9 936 380,601,75 6 Number holding less than a marketable parcel 248 2,336,847 1 2 3 Top 20 Shareholders of Quoted Shares MR CRAIG MICHAEL LAKE + MRS JUDITH MAY LAKE SWANCAVE PTY LTD SILVERPEAK NOMINEES PTY LTD MR ANTON WASYL MAKARYN + MRS MELANIE FRANCES MAKARYN BRIGHT ELEMENT PTY LTD MR MARX LIN BATAVIA CAPITAL PTY LTD QUEBEC NOMINEES PTY LTD GELLI PTY LTD MISS YAXI ZHAN GENDPORT PTY LTD VALIAN NOMINEES PTY LTD 4 5 6 7 8 9 10 11 12 13 W M T RESOURCES PTY LTD 14 ADRIATIC PTY LTD GANDRIA CAPITAL PTY LTD GOVINDA FREEDOM FUND PTY LTD WALLCLIFFE HOLDINGS PTY LTD MRS ADRIENNE ROSEMARY HAWKINS SOLSTRAALE NOMINEES PTY LTD MR ROLAND MICHAEL JOHNSTON 15 16 17 18 19 20 No. of Shares Held % Held 10,000,000 9,400,000 9,132,653 7,974,918 7,142,857 6,745,495 6,177,500 5,700,000 5,000,000 4,810,009 4,800,000 4,350,000 4,140,000 4,100,000 4,100,000 4,100,000 4,000,000 4,000,000 3,820,000 3,680,000 2.63 2.47 2.4 2.1 1.88 1.77 1.62 1.5 1.31 1.26 1.26 1.14 1.09 1.08 1.08 1.08 1.05 1.05 1 0.97 75 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 ASX ADDITIONAL INFORMATION OPTION HOLDINGS The Company has the following classes of options on issue at 26 September 2023 as detailed below. Class Type AX8OPT1 Unlisted Options Terms Unlisted options exercisable at $0.10 each, expiring 22 October 2024 AX8OPT2 AX8OPT3 AX8OPT4 AX8OPT5 AX8OPT6 AX8OPT7 Unlisted Options Unlisted options exercisable at $0.0593 each, expiring 16 November 2024- Directors Unlisted Options Unlisted options exercisable at $0.0957 each, expiring 27 November 2024 Unlisted Options Unlisted options exercisable at $0.059 each, expiring 1 February 2025 Unlisted Options Unlisted options exercisable at $0.05 each, expiring 28 December 2024 Unlisted Options Unlisted options exercisable at $0.05 each, expiring 27 January 2025 Unlisted Options Unlisted options exercisable at $0.05 each, expiring 1 December 2024 No. of Options 10,000,000 4,500,000 9,000,000 1,000,000 58,571,376 2,250,000 1,000,000 86,321,376 Options Range 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over Unlisted Options (AX8OPT1) No. of Holders No. of Options - - - 2 9 11 - - - 200,000 9,800,000 10,000,000 The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT1) Holder WMT RESOURCES PTY LTD No. of Options 2,990,000 % 29.9 Options Range 1 – 1,000 1,001 – 5,000 5,001 – 10,000 Unlisted Options (AX8OPT2) No. of Holders No. of Options - - - - - - 76 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 ASX ADDITIONAL INFORMATION 10,001 – 100,000 100,001 and over - 3 3 - 4,500,000 4,500,000 The following Option holders hold more than 20% of the Company’s Unlisted Options (AX8OPT2). Holder EMPF INVESTMENT PTY LTD SILVERPEAK NOMINEES PTY LTD GRANT JONATHAN MOONEY No. of Options 2000000 1500000 1000000 % 44.44 33.33 22.22 The following Option holders hold more than 20% of the Company’s Unlisted Options (AX8OPT3). Holder GRANT MOONEY MISS YAXI ZHAN SILVERPEAK NOMINEES PTY LTD No. of Options 3,000,000 3,000,000 3,000,000 % 33.33 33.33 33.33 The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT4). Holder STEPHEN BRUCE BODON Options Range 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over No. of Options 1,000,000 % 100 Unlisted Options (AX8OPT5) No. of Holders No. of Options - - - 13 113 126 - - - 1,097,742 57,473,634 58,571,376 No Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT5). Holder No. of Options % The following Option holders hold more than 20% of the Company’s Unlisted Options (AX8OPT6). Holder No. of Perf. Rights 1 2 OOFY PROSSER PTY LTD BEVERLEY NICHOLS % 1,500,000 500,000 The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT7). Holder 66.67 22.22 77 ACCELERATE RESOURCES LIMITED Consolidated Annual Report for the Year Ended 30 June 2023 ASX ADDITIONAL INFORMATION Holder JOSEPH ALLEN PRINSIP DRAKE-BROCKMAN No. of Options 1,000,000 % 100 PERFORMANCE RIGHTS HOLDINGS The Company has the following performance rights on issue at 26 September 2023 as detailed below. Holder JOSEPH ALLEN PRINSIP DRAKE-BROCKMAN No. of Perf. Rights 1,000,000 % 100 RESTRICTED SECURITIES Restricted Class Fully paid ordinary shares No. of Securities 1,000,000 Restriction Period Voluntarily escrowed to 25 February 2024 VOTING RIGHTS The holders of ordinary shares are entitled to one vote per share at meetings of the Company. Options and Performance Rights do not carry any rights to vote. ON-MARKET BUY BACK There is no current on-market buy back. 78 

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