Alara Resources Limited
Annual Report 2024

Plain-text annual report

EXPLORATION MINING PRODUCTION Annual Report 2024 Alara Resources Limited ABN 27 122 892 719 Alara had an action packed 2024, with the company achieving new heights as a copper-gold concentrate producer and expanding its exploration footprint in the Middle East, targeting minerals beyond copper. This report contains “forward-looking statements” and “forward-looking information”, including statements and forecasts which include without limitation, expectations regarding future performance, costs, production levels or rates, mineral reserves and resources, the financial position of Alara, industry growth and other trend projections. Often, but not always, forward- looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “is expecting”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will” be taken, occur or be achieved. Such information is based on assumptions and judgements of management regarding future events and results. The purpose of forward-looking information is to provide the audience with information about management’s expectations and plans. Readers are cautioned that forward- looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Alara and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, changes in market conditions, future prices of gold and silver, the actual results of current production, development and/or exploration activities, changes in project parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns. Forward-looking information and statements are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. Alara believes that the assumptions and expectations reflected in such forward- looking statements and information are reasonable. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Alara does not undertake to update any forward-looking information or statements, except in accordance with applicable securities laws. Forward-Looking Statements Contents 02 Letter to Shareholders 04 Projects Overview – Oman 24 Health, Safety and Environment Review 26 Board of Directors 28 Management Support Team 36 Directors’ Report 49 Auditor’s Independence Declaration 51 Financial Report 80 Consolidated Entity Disclosure Statement 81 Directors’ Declaration 82 Independent Auditor’s Report 86 JORC Code Information 87 Securities Information 88 Corporate Directory PRODUCTION Commercial production commenced and the first copper-gold concentrate shipped. REVENUE $5.5m The year marked the commencement of revenue generation which is expected to increase as plant achieves its full operational capability. Alara Resources Annual Report 2024 1 2024 saw the completion of mechanical construction activities and various phases of commissioning of the Al Wash-hi Majaza copper concentrator plant in Oman. In March 2024, Al Hadeetha Resources LLC (AHRL), our flagship JV company in Oman, kick-started the production of copper-gold concentrate. Over the year, our strong technical team and ever supportive JV partners together overcame any teething issues and we are happy to report a constant improvement in both the quality and quantity of concentrate. As we write this letter, AHRL has sold a fifth parcel of copper-gold concentrate from Al Wash-hi to Trafigura marking a total of 5,000 WMT with high gold grades dispatched thus far. The year also marked the commencement of revenue generation for AHRL which is expected to increase as plant achieves it full operational capability. Alara had another proud moment this year when impressed with the highest health, safety, environment and operational standards maintained by us, the Ministry of Energy and Minerals Oman chose AHRL and the Al Wash-hi Majaza project to be a pilot for standardisation of statutory reporting and monitoring regulations. Alara and its JV partners are looking forward to working with the government for betterment of the mining industry in Oman. Furthering Alara’s efforts to expand exploration activities, the Ministry of Energy and Minerals Oman granted Alara and its JV an additional 1,452km2 of exploration ground titled “Block 22B” and invited the JV to negotiate and execute an Exploration and Mining Concession Agreement. Alara’s capabilities leading it to secure this additional area for mineral exploration in Oman demonstrated the Government’s faith and trust in the Company and its JV partners. This exciting achievement was the result of Alara’s strong, decade-long commitment and unwavering effort in alignment with the Omani Government’s vision for mining, by investing in and conducting state-of-the-art mineral exploration campaigns, discovering multiple instances of base metal mineralisation in the country and developing an operating copper mine. The extended Block 22B concession area, which includes the existing Al Wash-hi Majaza copper-gold mine and an ancient mine and copper mineralisation intersected at Mullaq, has tremendous potential for further mineral discoveries adjacent to the Company’s existing processing facility. The timing of the grant of this concession fits well into Alara’s overall Oman copper development strategy. Letter to Shareholders Alara had an action packed 2024, with the company achieving new heights as a copper concentrate producer and expanding its exploration footprint in the Middle East, targeting minerals beyond copper. The surge in global demand for copper, driven by a pivotal role in supporting green energy and sustainable products, sets the stage for a potential 75% surge in copper prices over the next two years. Analysts anticipate copper prices soaring up to US$15,000 a ton in 2025, surpassing the record peak of US$10,730 per ton scaled in March last year. Alara has positioned itself as a key player in this equation. Evolving from an exploration-focused entity to a mining company and now a producer, Alara has undertaken a transformative rebrand this year to emphasise its commitment to sustainable metal production, particularly focusing on copper extraction, expanding its main operations in Oman. 2 Alara Resources Annual Report 2024 In May 2024, Awtad Copper LLC, another JV of Alara in Oman succeeded in obtaining renewal of the Block 8 exploration license area after a long wait. The Awtad JV has now entered into partnership with a UK listed exploration company to commence exploration activities in Block 8 which encompasses a 497km2 area in prospective North Batinah ophiolites. Previously, in 2011-12, Alara conducted exploration programs in this block identifying potential targets worthy of further prospecting. We are pleased to see the work in Block 8 will now be progressing unabated. During the year, Alara Resources LLC, a mining and exploration service provider company of Alara in Oman, saw significant growth. While continuing contract mining for AHRL, Alara Resources’ drilling division also executed several drilling contracts of various mining exploration companies in the country. Two diamond coring rigs owned by the company have completed several thousands of metres of drilling in chromite, limestone and marble projects. The mining industry in Oman, encouraged by the new exploration and mining policies of the Government, is witnessing a boom in the exploration sector. Alara has strategically positioned itself to benefit from this growth. Daris Resources JV, which owns the Block 7 exploration license and has two mining license applications in the pipeline, continued to pursue the pending grant of mining licenses. We remain optimistic to see both mining licenses awarded to develop two more copper mines in Oman. The path ahead for Alara in Oman will continue to remain challenging with very high expectations from all supportive local authorities, stakeholders and communities for the successful operation of a sustainable copper mine and increased production of copper-gold concentrate. We are determined to build upon the trust of our local stakeholders and better our approach to communities and stakeholders both locally and globally. In these exciting times, when the demand for copper is at all time high, we feel greatly privileged and committed in leading Alara and its JV companies in the Middle East. Over this year, Alara’s group of companies in Oman welcomed several new engineers, technicians, drillers and administrative professionals, taking its current manpower strength to 183 personnel with a healthy Omanisation ratio. The positive support from our Board and shareholders, the trust and confidence of all Alara’s JV partners, the talent and commitment of our employees, and the quality of our assets excites us and makes us optimistic about our future in Oman. We look forward to sharing key mine production and exploration updates and milestones with you throughout the coming year. Atmavireshwar Sthapak Managing Director Stephen Gethin Chairman Letter to Shareholders 3 Alara Resources Annual Report 2024 PROJECTS OVERVIEW OMAN Alara Resources Annual Report 2024 4 Muscat O M A N Sohar Port Block 22B Al Wash-hi Majaza Project 1,452km2 Al Ajal Daris Project Mullaq 41km2 Wash-hi 39km2 587km2 497km2 Block 7 Block 8 25km2 Awtad Project Gulf of Oman 0 50KM 25 Alara through four different joint ventures in Oman has exploration access rights over 2,561km2 under four exploration licenses and one mineral concession. Projects Overview — Oman OMAN IRAN Gulf of Oman Arabian Sea 5 Alara Resources Annual Report 2024 The current status of all mineral tenements and applications Al Hadeetha LLC JV Projects Licence Name Licence Owner Alara Share Exploration Licences Mining Licence within Exploration Licences Area Date of Grant Renewal Applied for Status Area Date of Application Status Washi-hi Majaza ML 10003075 Al Hadeetha Resources LLC 51% 39km2 Jan 2008 Nov 2016 Active 3km2 2013 Active. Included in 22B Concession Mullaq Al Hadeetha Resources LLC 51% 41km2 Oct 2009 Nov 2016 Active 1km2 Jan 2013 Included in 22B Concession Al Ajal Al Hadeetha Resources LLC 51% 25km2 Jan 2008 Nov 2016 Active 1.5km2 Jan 2013 Pending Daris Resources JV Project Block/Licence Name Licence Owner Alara Share Exploration Licences Mining Licence within Exploration Licences Area Date of Grant Renewal Applied for Status Area Date of Application Status Block 7 Al Tamman Trading and Est. LLC 50% 587km2 Nov 2009 May 2018 Pending Daris East 2km2 Dec 2012 In process Daris 3A5 3km2 Dec 2012 In process Awtad Copper LLC JV Project Block/Licence Name Licence Owner Alara Share Exploration Licences Mining Licence within Exploration Licences Area Date of Grant Renewal Applied for Status Area Date of Application Status Block 8 Awtad Copper LLC 10% 597km2 Nov 2009 April 2024 Active NA NA NA Projects Overview – Oman Mineral Tenements 6 Alara Resources Annual Report 2024 Projects Overview Al Wash-hi Majaza Copper-Gold Project Oman Al Wash-hi Majaza Project Mullaq 41km2 Muscat Wash-hi 39km2 0 50KM 25 Indicated Cu-Au Resource Outline Inferred Cu-Au Resource Outline Inferred Gold Resource Outline Exploration Licence Area = 39km2 Mining Licence Area = 3km2 Al Hadeetha Resources LLC (AHRL) 51%: Alara Resources 30%: Al Hadeetha Investments LLC 19%: Al Tasnim Infrastructure Services LLC Al Wash-hi Majaza project is located 160km south east of Muscat. The project comprises an open pit mine and 1MTPA copper concentrator plant with accommodation village. Full reports of the resources referred to in the legend prepared in accordance with the JORC Code, 2012 Edition are contained in the Company’s ASX announcements dated 15 December 2016 and 19 September 2016, which are summarised in more detail on page 13. Please also see further the statement regarding the Company’s mineral resources and ore reserves on page 86. 7 Alara Resources Annual Report 2024 Projects Overview — Al Wash-hi Majaza Copper-Gold Project Safety Performance: The Health, Safety, and Environment (HSE) performance for the period from Sept 2023 to Sept 2024 has demonstrated a strong commitment to maintaining a safe and environmentally responsible workplace. Notably, there were zero loss time injuries reported, which shows our dedication to safety and effective risk management. This report provides an overview of key metrics and activities that reflect our ongoing efforts to enhance HSE standards. Health Initiatives: A significant highlight this year was the Annual Medical Health Camp, conducted over two days. This initiative included: Comprehensive health assessments for employees, focusing on key parameters such as liver and kidney function, blood sample tests and blood sugar test to monitor overall health and detect any potential issues early. These efforts demonstrate our successful assessments and proactive interventions. Environmental Stewardship: We undertook several key environmental initiatives this year: — Tree Plantation: We planted trees across the plant and mine areas, enhancing biodiversity and promoting a healthier ecosystem. — Sprinkling System: An effective sprinkling system was introduced to reduce dust emissions, improving air quality for employees and surrounding communities. — Tailing Management: We implemented enhanced tailing management practices to minimize environmental impact and ensure safe disposal. HSE Integration of Operations Our mining and plant operations are closely integrated, ensuring efficient material flow from extraction to processing. This synergy not only enhances productivity but also aligns with our HSE objectives by facilitating consistent monitoring and management of health, safety, and environmental practices across all stages. Together, our mining and plant operations represent our commitment to operational excellence, safety, and sustainability in the mining sector. Safety and Sustainability at Al Wash-hi Majaza A view of crusher and ore stockpile area 8 Alara Resources Annual Report 2024 Projects Overview — Al Wash-hi Majaza Copper-Gold Project Key mine development work is being executed with an emphasis on grade control practices, including detailed blast hole sampling to ensure optimal ore quality. — December 2023: The primary ore body was encountered at 405 (MRL). — January 2024: Permission has been granted to blast up to 500 holes by Royal Oman Police. — February 2024: The operation began feeding the processing plant from the copper ore stackyard. — April to August 2024: Mining activities were temporarily suspended due to sufficient ore availability in the stackyard, which ensured continuous plant operations. — September 2024: Mining operations resumed, focusing on ore excavation from 395 MRL. — A comprehensive review of pit optimisation, design, and scheduling has been conducted to enhance the overall operational strategy. The box cut and blast plan direction has been adjusted based on the grade distribution. This allows us to perform in-pit blending during the blasting process. Additionally, blending continues from the old stackyard, ensuring that we consistently feed the plant with high-quality material. Currently, excavation is ongoing at 390 MRL, with a clear plan to reach at 375 MRL within the next year. As of September 2024, 12.1 Million Tonnes of OB had been removed from pit and 192,000 Tonnes of ore has been supplied to Plant and remaining low to medium grade ore of around 150,000 remains in stack yard. Mining commenced before processing infrastructure completion. Overburden is being removed and stockpiled and copper mining is also underway. Ore is placed in a separate stockpile for treatment at the processing facility. Key mine development work including the haul road, drainage channels, settling ponds, topsoil stacking, waste dump and ROM pad are complete. In March 2022 the first blast was conducted and topsoil from the first cut area was stockpiled for post mine rehabilitation. Overburden stripping has progressed continually since that time and copper oxide ore mining has subsequently commenced. Mining activities are conducted in two 10-hour shifts per day. The ongoing mining operation is characterised by strategic development and efficient resource management. Mining in progress at 390 MRL Al Wash-hi Majaza copper mine 9 Alara Resources Annual Report 2024 Projects Overview — Al Wash-hi Majaza Copper-Gold Project Exploratory Drilling Program Amidst the ongoing full-fledged operations at Al Washi-hi copper-gold open pit mine, the subsequent phase of exploratory drilling is scheduled for December 2024. The exploration plan will comprise both step-out and infill diamond core drilling in NQ size. The objective of the infill drilling program is to upgrade the inferred resources to indicated resources and indicated to measured category, thereby increasing the geological confidence and aid in precisely delineating the orebody configuration. The infill drilling will include a total of an estimated 3,000 metres with an estimated 13 holes, proposed at gap areas. Presently, the mineral resources stand at 12.39 million tonnes indicated and 3.71 million tonnes in the inferred category (see further details of the mineral resource on page 13). The step-out drilling of approximately 4,000 metres, targets testing whether mineralisation continuities in down dip and along the northwest potential side of strike extensions with the objective of increasing the mineral resources and the likelihood of it being converted into a reserve and hence increase the life of the mine. Exploratory drilling program Copper grades shown in the above diagram are part of the definition of the mineral resource and ore reserve at the Wash-hi mine. More details of this resource are on page 13. Bird’s eye view of Al Wash-hi Majaza pit Exploratory drilling plan Orebody Drillholes completed Drillholes proposed FY24 10 Alara Resources Annual Report 2024 Projects Overview — Al Wash-hi Majaza Copper-Gold Project Construction of plant and pre-stripping of the mine was completed during the year. Commissioning of the plant commenced in November 2023 with commercial production commencing in March 2024. The first shipment of copper-gold concentrate was dispatched to China in May 2024 under an offtake agreement with Trafigura. A key component of the concentrator plant – the tailing filter press (TFP) – while sourced from a reputable European manufacturer has not performed in accordance with its rated design capacity. Problems with the TFP limited production at the plant to approximately 40% of its design capacity on commencement of operations. Engineers from the manufacturer have visited the site on two occasions to make improvements. As at the date of writing this report, the plant is in ramp-up phase after a two-week shutdown to make further improvements to the TFP. The plant is now operating at approximately 45-50% of its design capacity. Alara has ordered two interim replacement TFPs from China, with a combined processing capacity of 75-80 tonnes of concentrate per hour, as an interim solution. Once installed these TFPs are expected to increase production at the plant to 80-85% of rated capacity. The interim TFPs are due to be installed and operational by February to March 2025. As a long-term solution AHRL has also ordered a state-of-the-art filter press from Italy which will serve as the permanent TFP for the plant once delivered. This unit has a longer lead time than the Chinese TFPs, thus the solution is being implemented in two stages. The permanent TFP will have a processing capacity of 137 tonnes of concentrate per hour and has been ordered from a leading manufacturer in Italy. The vendor’s proposed design has exceptional performance, including a short filtration cycle and a suite of modern capabilities including high-pressure, automatic filter-cloth rinsing, automatic plate shaking and an overhead robot to perform plate change outs. AHRL is targeting October 2025 for the installation and commissioning of the permanent TFP. Once operational, this press will provide a robust and permanent solution to the current challenges with tailings management at the plant. The reporting period was monumental for Alara, seeing the completion of AHRL’s 1 MTPA1 copper concentrator plant at the Wash-hi mine and commencement of production of copper-gold concentrates. Production commencement at Al Wash-hi Majaza (1) Alara’s ASX Announcements dated 1 April 2016 (Definitive Feasibility Study Results initial announcement), 24 January 2017 (Definitive Feasibility Study update), 28 June 2018 (Project Net Present Value update) and 29 March and 7 April 2021 (Project Net Present Value NPV update) contain the information required by ASX Listing Rule 5.16 regarding the stated production target. All material assumptions underpinning the production target as announced on those dates continue to apply and have not materially changed, except to the extent that a relevant assumption in an earlier announcement referred to above has been updated by an assumption in a later announcement referred to. 11 Alara Resources Annual Report 2024 Commercial Production at the Plant Commenced in March 2024 Initially, the plant was tested with basaltic waste materials to ensure proper trial runs of all the equipment, then followed by a low grade of copper ore (< 0.4%) to initiate the concentrate production. The plant is equipped with state-of-the-art online sampling system for process control. There is a constant effort by the operations team on site for grade and recovery optimisation by varying the various dosage rates of the reagents, air flow to the float cells and the froth level at the various cells. Wash-hi copper concentrator plant The Wash-hi copper concentrator plant is a full-fledged concentrator plant starting with primary crushing followed by 2-stage grinding, concentrate flotation, concentrate dewatering and tailing dewatering including dry tail disposal. On-site geochemical lab Fresh water storage facility Plant control room Mills and Crusher Projects Overview — Al Wash-hi Majaza Copper-Gold Project 12 Alara Resources Annual Report 2024 Copper-gold concentrate being loading into containers Wash-hi copper resources and reserves Mineral resources and reserves AHRL has conducted an extensive exploration program in the license area, resulting in the discovery of a substantial copper resource at Wash-hi – Majaza. Resource and reserve statements are provided in the two tables below. An Inferred Resource of 0.31MT at 0.51g/t Au was also identified in the gossan, outside the main ore body. Mineral resources summary – 0.25% Cu cut-off Resource Tonnes (m) Cu % Indicated 12.4 0.89 Inferred 3.7 0.79 Total 16.1 0.87 Ore reserve statement JORC Category Tonnes (m) Cu % Au g/t Probable Reserve 9.70 0.88 0.22 Additional copper potential The Wash-hi exploration license has significant potential for the discovery of additional copper deposits. Most of the area around Wash-hi Majaza is covered by ancient and recent alluvial fans. Based on the premise that sulfide mineralisation in the area is coincident with a distinct reduction in the magnetic susceptibility values of basaltic rocks, four other targets have been identified for further follow-up. It is proposed to follow-up these areas with electrical geophysical methods (EM or IP) to confirm the target potential followed by drilling. Resource exploration is uncertain. There is no guarantee that exploration of the above targets will yield an economically mineable quantity of any mineral. JORC Code information Full reports of the resources and reserve referred to in this section, prepared in accordance with the JORC Code, 2012 Edition, are contained in the Company’s ASX announcements dated 15 December 2016 and 19 September 2016. Please also see further the statement regarding the Company’s mineral resources and ore reserves on page 86. Wash-hi Mine Copper Sales AHRL has shipped five consignments of copper and gold concentrate from Sohar Port since the plant commenced operation. Summaries of the shipments are set out in the table below. The longer interval between the fourth and fifth shipments is a result of a suspension of operations due to the TFP. Monthly Copper and Gold Production at Al Wash-hi Majaza Plant Item Parcel 1: May 2024 Parcel 2: Jun 2024 Parcel 3: 18 Jul 2024 Parcel 4: 14 Aug 2024 Parcel 5: 14 Oct 2024 Dispatch Cycle 4 weeks 4 weeks 3 weeks 4 weeks 8.5 weeks Copper Concentrate WMT (approx.) 1019 WMT 1223 WMT 833 WMT 855 WMT 1168 WMT Copper Concentrate DMT (approx.) 909 DMT 1093 DMT 762 DMT 762 DMT 1048 DMT Copper (approx.) 130 MT 163 MT 120 MT 124 MT 167 MT Gold (approx.) 5.8 Kg 5.7 Kg 4 Kg 4 Kg 7.1 Kg Potential RTP magnetic regional exploration targets in Wash-hi licenses 13 Alara Resources Annual Report 2024 Review of Operations New Block 22B Exploration Permit Oman In 2024 the Omani Ministry of Energy and Minerals (MOEM) granted an Alara JV company an additional 1452 km2 of exploration ground titled “Block 22B” and invited the JV to negotiate and execute an Exploration and Mining Concession Agreement covering this area (Concession Agreement). On execution of the Concession Agreement the Omani Government will grant the JV the exclusive right to explore, appraise, develop and mine designated minerals within Block 22B. The Concession Agreement will comprise an initial two-year exploration phase followed by an exploitation phase extending up to 15 years. Extensions of both phases may be considered for reasonable cause. The Concession Agreement will detail the obligations of the concession holder and the Government, and address issues such as included minerals, royalties and tax. Block 22B includes Block 22A, covering the former Al Wash-hi and Mullaq exploration licenses held by AHRL. AHRL will continue to hold that area, with the remainder of Block 22B being held by a new joint venture company “Al Hadeetha Mining LLC” in which Alara holds a 27.5% stake. Alara’s other partners in the new JV will be its two existing partners in AHRL – Al Naba Group and Al Tasnim Group (each also holding 27.5%) with the remaining 17.5% held by South West Pinnacle, an existing Alara JV Partner in Alara Resources LLC, an Omani mining services company. Brief geological description of Block 22B Nearly 20% of the area in the southern and central-north and along the north-western margin of Block 22B is occupied by recent alluvial sands interspaced by dry river channels, known as wadis. More than two-thirds of the area in the northern half of Block 22B is mountainous, with low hills. The AHRL Block 22A area, which surrounds the existing Washi-hi Mine and includes the ancient Mullaq copper mine, is located in the south-western corner of Block 22B. The geological characteristics of Block 22B overlaid with existing exploration licenses are shown in the diagram on the following page. The Company’s existing Wash-hi project (covering an area of 39km2) and Mullaq project (covering an area of 41km2) fall entirely within Block 22B. Importantly, areas already explored by Alara constitute a substantial part of the upper-crustal rocks of Block 22B. This is significant, as the Semail Ophiolite upper-crustal rocks are considered to contain nearly all the VMS-type base metal prospects in Oman. Geologically, the mountainous areas of Block 22B include the Semail Nappe. The Semail Nappe is now recognised as a Cretaceous ophiolite, exposing the world’s best-preserved section of upper mantle, lower- oceanic crust and upper-oceanic crust. The Semail Nappe (the Semail Ophiolite) covers almost the entire area of Block 22B (excepting some pre-Ophiolitic sedimentary rocks in the north-western section) and exposes the upper-mantle section, lower-crustal rocks and upper-crustal rocks of the ophiolite sequence, with the upper-crustal rocks mainly being covered by alluvium. There are reports of several old copper workings in the north-western section of the Block, old gold and chromite workings in the northern section and a small number of old iron workings in the western section. In general, the upper-oceanic crust of the Semail Ophiolite is known to host copper and gold deposits, whereas the lower-crustal parts and the upper mantle sections are known to host some chromite deposits with minor incidences of PGE mineralisation. Exploration activities in the concession area will not be restricted to discovering base mental deposits, Al Hadeetha Mining LLC will be focussing on all potential commodities including industrial minerals. There is no assurance that any new mineralisation will be discovered in Block 22B in economically mineable quantities. Location of concession encompassing Wash-hi and Mullaq licenses Muscat 0 50KM 25 Block 22B 1,452km2 Al Wash-hi Project Having brought its first mine to production, the next phase in Alara’s growth plan is to resume exploration on its other Omani mineral properties to endeavour to identify further economic copper-gold resources. Any new discovery within proximity to the existing Wash-hi processing facility can be taken there for treatment under the “hub and spoke” model, thus avoiding the need to construct further high-capital infrastructure at any satellite deposit that may be found. Any future discovery has potential to significantly extend the economic life of the Wash-hi processing plant. 14 Alara Resources Annual Report 2024 Projects Overview — New Block 22B Exploration Permit Geological Map of Block 22B 15 Alara Resources Annual Report 2024 In January 2011, Awtad Copper entered into a joint-venture (JV) agreement with Alara which had been carrying out exploration work in the adjoining Block 7 as part of another JV. Exploration work on Block 8 ceased in 2013 while the block’s licence was being renewed, a process which was finalised in May 2024. The Awtad Project is located immediately adjacent to the Block 7 where Alara exploration identified copper mineralisation and resources (Daris Copper-Gold Project). Exploration previously undertaken at this project includes: — 86-line km of airborne VTEM, 14-line km of ground IP, 169-line km of ground magnetics and 202-line km of high-resolution ground magnetics. — 76 RAB drill holes totalling 1,747m and 11 core drill holes totalling 299m. — Drilling results (including some undertaken across the Al Mansur Prospect) were low grade in general and inconclusive. A diagram below shows the potential of the Al Mansur Prospect. Awtad drilling results were publicly reported in a manner compliant with the then current, 2004 Edition, of the JORC Code on ASX on 31 October . Review of Operations Awtad Copper-Gold Project Oman Muscat 0 50KM 25 Block 8 Awtad Project 497km2 Block 7 Daris Project Al Mansur Prospect – Rock chip geochemistry over RTP Mag Awtad LLC Copper 10% Alara interest with potential to increase to 70% 90% Awtad Resources LLC (Awtad) Block 8 covers approximately 497km2 in the Hazm area east of Daris in north western Oman and was first granted in 2009. 16 Alara Resources Annual Report 2024 2012 Previous exploration identified anomalies worthy of further exploration. The fact that prospective geological formations within the license area are under cover of alluvial and aeolian deposits enhances the chances of further copper mineralisation. There is no assurance that further exploration at Awtad will result in an economically mineable quantity of any mineral being discovered. Block-8 Exploration License The Block 8 Exploration License lies within the Semail Ophiolite Sequence of Oman, 150km west of Muscat. The western boundary of the area adjoins Block 7 where Alara previously identified the Daris East copper resource and Daris 3A5 mineralisation. Copper and gold in the Sultanate of Oman is found in the Semail Nappe, which comprises the Semail Ophiolite sequence consisting of mylonite at the base, through mafic cumulates, high level gabbros, sheeted dykes and volcanic rocks at the top. Copper and gold mineralisation usually occurs in the volcanic rock units of ophiolite. More than 150 volcanic massive sulphide (VMS) prospects have been discovered along the 500km length of the Semail Ophiolite. Block 8 is part of this geological belt and is distinguished by extensive regolith cover over exposed geology, which includes recent alluvial and aeolian deposits. Because of this cover, no known copper mineralisation has yet been located in the area, making the Block an ideal location for potential fresh discoveries of base metal deposits. The Block 8 licence was renewed in April 2024. With renewal of the license, the Awtad JV has executed a non-binding heads-of-terms (HoT) with AIM-listed Power Metal plc for the parties to enter negotiations for a binding agreement with the following key terms: — Power Metal will manage the Block 8 exploration program for one year. — Power Metal will provide all management, planning, execution, interpretation and reporting on exploration activities and will consult with Awtad and Alara during development and implementation of the program. — Power Metal will provide funding of up to US$740,000 for exploration activities. It will contribute an initial amount of US$500,000 to cover the period up until the renewal date of the existing licence (due 30 April 2025), with the balance to be contributed following successful renewal. — Following the US$500,000 initial expenditure milestone, Power Metal will earn a 10% interest in Block 8 and a further 2.5% interest on expenditure of a further US$240,000. — Upon Power Metal completing US$740,000 expenditure on the project, a joint funding program covering future expenditure and specifying Power Metal’s ongoing percentage interest in the project will be negotiated. — Awtad Copper is responsible to maintain the licence and must remain the holder of it throughout the period in which the above work is carried out. Power Metal has a first right of refusal to acquire Block 8 if Awtad Copper wishes to dispose of it. — Awtad Copper is responsible to seek all required approvals for the exploration program. The formal agreement was executed, on those terms, in October 2024. The parties are to endeavour to negotiate a formal, legally binding agreement. Although there can be no certainty at this stage given the non-binding nature of the HoT, Alara is confident that an agreement will be entered into, subject to further discussions between the parties. While maintaining its current interest in Block 8, Alara plans to increase its stake in future based on success of Power Metal exploration programs. Further to detailed discussions, Power Metal has proposed a comprehensive exploration program for Block 8 to both develop existing copper prospects defined from a combination of historic surface work and drilling, as well as grass-roots exploration work on the remainder of the Block which, to date, has not been the subject of detailed exploration. The historic exploration work, combined with the geological setting of the Block, are highly encouraging, with the Block hosting a section of the Semail ophiolite sequence, which is a highly prospective geological unit that, to date, has yielded 150 known volcanic massive sulphide (VMS) prospects. Power Metal will use industry-accepted exploration techniques to advance the licence, with technical work to be carried out at every stage to enable any new data to qualify for inclusion in an accredited MRE to 43-101 or JORC compliance should this be required. Through historical work by Alara in 2013, there are several copper prospects already identified, which allows next stage exploration programmes to proceed efficiently while more early-stage work will be required on the remainder of the highly under-explored Block 8. Projects Overview — Awtad Copper-Gold Project 17 Alara Resources Annual Report 2024 Projects Overview– Oman Daris Copper-Gold Project Oman Al Musanaah As Suwayq Block 8 Daris 3A5 Daris East Awtad Project 0 20KM 10 Block 7 Daris Project 587km2 Al Tamman Trading Establishment LLC 50%: Alara with option to increase to 70% 50%: Al Tamman Trading Establishment LLC – 50%, of Daris Resources LLC (DRL) The Daris project comprises two high-grade copper deposits within the 587km2 exploration license, which includes two mining license applications covering 4.5km2. This project fits well with Alara’s preferred “hub and spoke” model, which provides for processing of Daris ore at the Wash-hi–Majaza copper concentration plant. The above Daris-East resource estimate was first reported on ASX on 1 November 2012. That report complied with the then current 2004 Edition of the JORC Code. Reported details of that estimate have not been updated subsequently to comply with the JORC Code 2012 Edition, on the basis that the information has not materially changed since it was first reported. By conducting extensive exploration programs in Block 7, the Daris JV has defined resources at Daris East Prospect to measured category under JORC, identified mineralisation at the Daris 3A5 prospect and several exploration targets. Block 7 Exploration License and Mining License application areas Two Mining Licence applications filed over Daris East and Daris 3A5 prospects within the exploration licence remain pending. The table on page 6 provides details of licenses at Daris. Recent site visits conducted by Ministry officials gave positive indications for these applications advancing towards issuance. Daris East Prospect The copper resource for the Daris-East Prospect is outlined above. The following drilling has already been carried out at the Daris East Project: — A total of 21 rotary (624m) and 41 diamond core (4,654m) holes totalling 5,278m have been drilled by Alara to test shallow oxide mineralisation and to locate massive sulphide and stringer zones beneath the oxide cap at the Daris-East prospect and to test geophysical targets in the vicinity. — In addition, historic drilling data from 44 holes totalling 4,353m has been included in the resource database. Drilling results at the Daris-East project have been fully disclosed on ASX in a manner compliant with the then current 2004 Edition of the JORC Code, in announcements dated 6 October 2010, 13 December 2010, 19 April 2011 and 30 September 2012. Reported details of those results have not been updated subsequently to comply with the JORC Code 2012 Edition, on the basis that the information has not materially changed since it was first reported. Daris-East Prospect copper resource estimate Ore Type Cut-off grade Measured Indicated Measured and Indicated Inferred Cu% Tonnes Cu% Tonnes Cu% Tonnes Cu% Tonnes Cu% Sulphides 0.5 130,000 2.5 110,000 2.2 240,000 2.4 31,000 2.3 Oxides 0.5 97,000 0.8 87,000 0.66 180,000 0.72 1,700 0.61 18 Alara Resources Annual Report 2024 Alara plans to conduct further drilling before making an updated resource estimation. There is no assurance that further exploration at Daris-East will result in any increase in the resource estimate. Next steps – Daris East The Daris East Mining License application, which covers an area that includes measured, indicated and inferred JORC copper resources, was opposed by the Ministry of Housing due to its proximity to recently allotted land. Negotiations with the MOEM progressed with the following representations made. — Modifications to the mining licence area, if required — Request submitted to stop future allotments of land in the area — Offered to acquire (rent/lease) constructed houses for a short duration — Promised minimal infrastructure build — Proposed safe mining operation — Committed to post mining rehabilitation. Review of a petition supporting the application lodged by Daris is now underway at the Ministry of Energy and Minerals. Projects Overview — Daris Copper-Gold Project Daris East Drilling Locations Daris East Core Drillholes Projected Copper Sulphide Resource Outline Projected Copper Oxide Resource Outline Projected Basalt Copper Disseminated Resource Outline 19 Alara Resources Annual Report 2024 Daris 3A5 Drilling Results Past Drilling Alara 2010 Drilling Alara 1012 Drilling Daris 3A5 Prospect Preliminary drilling at Daris 3A5 has intersected high-grade copper mineralisation. Alara plans to conduct further drilling before making a resource estimation. The drill hole location map and intersection table are set out above. There is no assurance that further exploration at Daris 3A5 will result in any resource estimate being made. Next steps – Daris 3A5 The Daris 3A5 Mining License application is progressing with the Government. See p18 for references to the full public reports of these drillingresults, in a form compliant with the then current JORC Code 2004 Edition. Projects Overview — Daris Copper-Gold Project 20 Alara Resources Annual Report 2024 Exploration potential – future opportunities Preliminary exploration confirmed the presence of two more areas of potential positivity in similar geological trends. The Al Ajal prospect is unique, as it is considered to be the only known mineral occurrence in Oman Mountains not to be associated with the ophiolite volcanics of Oman. Despite its small size and difficult terrain, in view of the high gold grades detected by previous explorers, this prospect warrants further exploration for copper and gold-bearing deposits. There is no assurance that exploration at Al Ajal will result in any resource estimate being made. Mining License Application A mining license application at Al Ajal submitted in 2013 has progressed through various Ministries in Oman. AHRL considers the grant of a mining licence clearance as a key prerequisite to further exploration work in the area. Prospective areas within Al Ajal Exploration License EP Slice at 100m depth Projects Overview– Oman Al Ajal Exploration License Oman The Al Ajal Prospect is located near the village of Al Ajal in the Taww area, near the northern coast of the Sultanate of Oman and about 65km west of Muscat. Alara carried out ground geophysical surveys over limited areas to confirm the geophysical signatures of mineralisation from historical (non-JORC compliant) mineral estimates in the Al Ajal License Area (see diagrams below). Al Ajal 25km2 Muscat 0 20KM 10 21 Alara Resources Annual Report 2024 Mining Division Alara holds a 35% share in AHRL. Al Hadeetha Resources LLC (AHRL) entered in a contract with Alara Resources LLC (ARL) for it to perform mining services for AHRL over ten years at a cost of approximately USD 126m (AUD 187.83m). The company along with its JV partners is delivering good value to Wash-hi project by most efficient mining practices. Drilling Division Two diamond coring rigs owned by the company have completed over ten thousand metres of drilling in copper, chromite, limestone, marble exploration projects and have running contracts with Mineral Development Oman for three thousand metres of diamond drilling. The mining industry in Oman, encouraged by new transparent exploration and mining policies of the Government, is witnessing a boom in exploration sector. Alara is in a good positioned to benefit from such growth. ARL Drill Crew Projects Overview– Oman Alara Resources LLC Oman 22 Alara Resources Annual Report 2024 23 Alara Resources Annual Report 2024 Health, safety and environment review Key Highlights — Safety Performance: The Health, Safety, and Environment (HSE) performance for the period from July 2023 to June 2024 has demonstrated a strong commitment to maintaining a safe and environmentally responsible workplace. Notably, there were zero loss time injuries reported, which shows our dedication to safety and effective risk management. This report provides an overview of key metrics and activities that reflect our ongoing efforts to enhance HSE standards. — Environmental Stewardship: We undertook several key environmental initiatives this year: Tree Plantation: We planted trees across the plant and mine areas, enhancing biodiversity and promoting a healthier ecosystem. Sprinkling System: An effective sprinkling system was introduced to reduce dust emissions, improving air quality for employees and surrounding communities. Tailing Management: We implemented enhanced tailing management practices to minimise environmental impact and ensure safe disposal. Integration of Operations Our mining and plant operations are closely integrated, ensuring efficient material flow from extraction to processing. This synergy not only enhances productivity but also aligns with our HSE objectives by facilitating consistent monitoring and management of health, safety, and environmental practices across all stages. Together, our mining and plant operations represent our commitment to operational excellence, safety, and sustainability in the mining sector. HSE Objectives Set for the Year — Continue to Maintain Zero Loss Time Injuries: By reinforcing safety protocols and training programs. — Enhance HSE Inspections: Increase the frequency and focus of inspections to further reduce unsafe practices. — Expand Training Programs: Continue to develop and implement comprehensive training to address emerging safety challenges. — Improve Environmental Impact: Further reduce resource consumption and hazardous waste generation through targeted initiatives — Strengthen Hazard Identification: Conduct risk assessments and safety audits across all operations to identify potential hazards and implement corrective actions. — Improve Emergency Preparedness: Develop and conduct emergency response drills throughout the year, ensuring all employees are familiar with emergency procedures and protocols. — Promote Health and Well-being: Launch a health and wellness program aimed at pulmonary function test, with 100% participation target of employees working in mines and plant. — Foster a Safety Culture: Increase employee participation in safety committees and initiatives by 100%, fostering a culture of shared responsibility for health and safety Challenges While we made significant strides, we faced challenges such as increased number of first aid cases and very low near-miss reporting. The annual Health, Safety, and Environment (HSE) report provides a comprehensive overview of our commitment to maintaining a safe and sustainable mining and plant operation. In year 2023-2024, we focused on enhancing safety protocols, promoting employee health, and minimizing environmental impacts. 24 Alara Resources Annual Report 2024 Performance Metrics Safety Performance: HSE Performance Overview Incident Statistics: • Loss Time Injuries: 0 • First Aid Incidents Reported: 12 • Near Misses Reported: 7 • Environmental Incidents: 14 Safe Manhours: • Total Safe Manhours: 2,971,784 hours HSE Activities: • Training and Development: • Induction Training Hours: 467.5 hours • Inspections and Observations: • HSE Inspections Conducted: 420 • Environmental Observations: 18 Environmental Performance: • Water Consumption: 84,870.9 KL • Diesel Consumption: 11,446 KL • Power Consumption: 5,930.81 KW • Lube Oil Consumption: 3.6KL Achievements • Behavioural safety initiatives implemented • Successful training programs • 180 trees planted in mine and camp Future Goals Looking ahead, we aim to further reduce incidents, enhance employee training programs, and continue our commitment to environmental sustainability through recycling of waste & water recycling This report underscores our dedication to fostering a culture of safety and environmental responsibility in all aspects of our mining operations. This policy serves as the foundation for our HSE management system, guiding our actions and decisions as we strive for excellence in health, safety, and environmental stewardship. Conclusion The period from July 2023 to June 2024 has demonstrated our organisation’s robust commitment to health, safety, and environmental oversight. With no loss time injuries reported and a proactive approach to risk management and environmental performance, we are in a strong position to maintain our positive momentum. Our upcoming initiatives will build on this solid foundation to ensure ongoing success and further improvements in our HSE practices HSE Inspections Sep 2023 65 56 75 28 28 0 12 1 5 0 70 80 Jan 2024 May 2024 Oct 2023 Feb 2024 Jun 2024 Nov 2023 Mar 2024 Jul 2024 Dec 2023 Apr 2024 Aug 2024 Unsafe Practices Reported Sep 2023 140 168 143 18 36 9 24 23 19 118 129 78 Jan 2024 May 2024 Oct 2023 Feb 2024 Jun 2024 Nov 2023 Mar 2024 Jul 2024 Dec 2023 Apr 2024 Aug 2024 25 Alara Resources Annual Report 2024 STEPHEN GETHIN Non-Executive Director and Chairman Barrister and Solicitor of the High Court of Australia Appointed Non-Executive Chairman on 2 July 2020 Appointed Non-Executive Director on 28 June 2020 Non-Executive Director from 11 January to 22 November 2019 Experience Stephen Gethin has 30+ years of experience in the provision of corporate legal advice and 15+ years of experience in the provision of ASX-listed secretarial services in a range of industries, including resources, technology and investment. Prior to founding a private legal practice in 2013, he served as General Counsel and Company Secretary of Strike Resources Limited (ASX:SRK) and before that held the same roles at ERG Limited (ASX:ERG). Special Responsibilities Chairman of the Remuneration and Nomination Committee and Member of the Audit Committee. Other Directorships In Listed Companies in Past 3 Years – Nil ATMAVIRESHWAR STHAPAK Managing Director Bachelor of Applied Science and Master of Technology, Applied Geology Appointed Managing Director on 28 July 2020 Appointed Executive Director on 3 February 2016 Previously Non-Executive Director (22 September 2015 to 3 February 2016) Experience Atmavireshwar Sthapak is a geologist specializing in mineral resource exploration and evaluation studies. He joined Alara in 2011 as an Exploration Manager and led geological investigations in Oman. His contribution resulted in identification of copper mineralisation in four tenements, definitions of JORC resources at Wash-hi and Daris East, and applications for mining licenses over five areas. AV was later instrumental in acquiring the mining license for the Al Hadeetha Copper-Gold Project in Oman. In July 2020, Mr Sthapak was appointed Managing Director, leading the company’s new future in copper production. Prior to joining the Company, Mr. Sthapak’s career spanned 10 years with ACC/ ACC-CRA Ltd as exploration geologist and project manager, and 10 years with Rio Tinto (Australasia) Exploration and Rio Tinto Diamond, where he was awarded a Rio Tinto Discovery Award in 2009. He has worked on world- class deposits and mines in Australia, and gold and diamond mines on four continents. Mr Sthapak is an active member of AusIMM. Other Directorships In Listed Companies in Past 3 Years – Nil VIKAS JAIN Non-Executive Director MBA Appointed 6 April 2016 Experience Vikas Jain has 19 years of experience in the field of mineral exploration, mining, oil-field exploration and allied activities. He is currently Managing Director and CEO of the Indian Company South West Pinnacle Exploration Limited (SWPE), founded by him in 2006 and listed on the National Stock Exchange, India. Under his leadership and able guidance, SWPE has continued to grow and at present is a premier exploration company in India. Mr Jain also has wide experience in the open-cut mining of various minerals and allied activities through his earlier roles with other companies, as well as his current involvement in other family run businesses and interests. Special Responsibilities Chairman of the Audit Committee and Member of the Remuneration and Nomination Committee. Other Directorships In Listed Companies in Past 3 Years – South-West Pinnacle Exploration Limited, listed on the National Stock Exchange, India. Board of Directors 26 Alara Resources Annual Report 2024 SANJEEV KUMAR Non-Executive Director MBA (Finance & Marketing), IMT Ghaziabad, India; BE (Metallurgy), VNIT Nagpur, India Appointed 23 October 2020 Experience Sanjeev Kumar has extensive Australian and international business experience, with a specialisation in high-value asset finance lending. He is currently a director of Tradexcel Global Pty Ltd, an Australian company which he co- founded in 2017, that helps ANZ businesses in expanding into the overseas markets by assessing new markets, navigating entry barriers, business strategy & planning, local partnerships etc. His previous roles include Vice President at India Factoring & Finance Solutions (a subsidiary of Fimbank), Associate Vice President at Tata Capital Financial Services, India and Manager, Infrastructure Division at ICICI Bank Limited. Other Directorships In Listed Companies in Past 3 Years – Nil DEVAKI KHIMJI Non-Executive Director Appointed 2 February 2022 Experience Ms. Khimji is the Managing Director of Al Tasnim Group. Al Tasnim is a major all-service group in the Omani construction industry, with over 30,000 employees. The Group leads the Omani construction industry in contracting, manufacturing of cement products, building finishes products and roads, asphalt and infrastructure works, among other product offerings. Ms. Khimji is experienced in leading and growing a wide range of businesses, establishing profitable relationships with clients and suppliers across the world. She has previously served as Managing Director of India Circus Pvt. Ltd, an online lifestyle products retailer in India. She is also a pioneer of fitness club/ gym management systems, becoming a very successful entrepreneur in the software and e-commerce industries. Other Directorships In Listed Companies in Past 3 Years – Nil FARROKH JIMMY MASANI Alternate Director Appointed 2 February 2022 Experience Mr Masani has 30+ years experience in the ever-evolving construction industry. He has a strong track record of creating and growing businesses in a competitive environment, with a commitment to the principles of excellence through innovation and teamwork. Mr Masani has extensive commercial expertise and in-depth knowledge of civil construction, HVAC, plumbing, firefighting, electrical systems design and project management. Other Directorships In Listed Companies in Past 3 Years – Nil 27 Alara Resources Annual Report 2024 DINESH AGGARWAL Company Secretary FCPA, CA, CMA, FTI, DipFS (Advanced) Appointed 2 July 2020 Experience Mr Aggarwal has over 20 years’ experience in accounting, finance and business management both in Australia and overseas, and is the Founder and Managing Director of Fortuna Advisory Group – an award-winning, multi- disciplinary practice with Tax and Business Advisory, Legal Services, Mortgage Broking and Financial Planning divisions. Mr Aggarwal advises clients in Australia and overseas on tax matters and business services and advises the Australian operations of several multi- nationals. He also handles tax disputes with the ATO including appeals to the AAT. He is the former Chairman of the Public Practice Committee of CPA Western Australia and is currently a member of the National Public Practice Advisory Committee of CPA Australia. Named as one of Australia’s top three SME Tax Advisers in 2015 by the Tax Institute, Mr. Aggarwal has also won the prestigious CPA Australia 40 Under 40 Young Business Leaders Award for 2012 and 2013 and has won numerous other awards. Company Secretary 28 Alara Resources Annual Report 2024 AVIGYAN BERA (CEO) AHRL BTech, Pengg (SAIMECHE) Mr. Bera has more than 18 years of experience in handling EPC Projects in India and overseas. He had been involved in projects right across the globe in various countries like India, Zambia, South Africa, Liberia, Namibia, Mongolia, Iran, UAE, and Morocco. He started his career in Process Engineering for Mineral Bulgaria Beneficiation Plants and Complex Chemical Process Plants, then migrated to Project Management and Business Development activities in India, Africa & Middle East regions. Mr. Bera joined AHRL in June 2020. He brings in all the. experience and technical know-how for executing Owner Managed Projects through his key knowledge in process engineering, project execution and overall management skills. MOHAMMAD KAHLID QAMAR General Manager – Operations B.Tech, Chemical Engineering Mr. Khalid has over 15 years of diverse experience in operations, projects, and commissioning of process plants in India and Oman. Prior to joining AHRL, he has worked with leading resource companies like Hindustan Zinc Limited and Strategic and Precious Metals Processing (SPMP), Oman. He has overseen a wide range of functions including manufacturing, industrial safety and project engineering. Currently he is working to develop the Operation and Maintenance team for AHRL’s Copper Processing plant and also overseeing the overall operational readiness for successful and sustainable operation of the processing plant. MOBASHIRUL HODA HSE Manager (HSE Head) B.Sc. in Biotechnology, PGD in ISM, NEBOSH, OH&S(NVQ 6) Mobashirul Hoda is a highly qualified HSE professional with over 18 years of experience in managing major projects across diverse sectors, including oil and gas, aluminum smelting, civil construction, cross-country pipelines, waste management, water treatment & Beneficiation Plant & Mine He has successfully contributed to projects in Qatar, Saudi Arabia, the UAE, India, and Oman. He possesses a strong understanding of HSE risks, opportunities, and regulatory requirements, both nationally and internationally. He is well-versed in municipality regulations and industry best practices, enabling him to implement effective safety procedures on-site. His excellent communication skills and assertive personality facilitate productive interactions with site management and subcontractors, ensuring that all HSE matters are effectively addressed. His proven ability to lead and drive safety initiatives makes him a valuable asset in any organisation dedicated to maintaining high safety standard. Management Support Team 29 Alara Resources Annual Report 2024 GAUTHAM JAIN (CFO) M.Com, Chartered Accountant (CA) A seasoned finance professional with over 17 years of extensive experience in Finance, Accounts, Audits and Taxation across diversified industries. Having a strong foundation from working with Big4 audit firm, he has honed his skills in cost control, profit optimisation and liquidity management. His core competencies include financial reporting, cash flow monitoring and ensuring compliance with statutory regulations. A skilled leader, with strong analytical abilities, Gautam has successfully managed large finance teams, streamlined financial workflows, and conducted internal audits to improve organisational efficiencies. In his previous assignment, he served as Finance & Accounts Manager at Al Tasnim Enterprises LLC, leading financial operations for the Sohar Region, Oman. His focus on monthly financial reporting, cost controls and initiatives on increasing productions have consistently enhanced profitability and strengthened internal financial controls. REXIN KAMILAS Finance and Administrative Manager BACS, M. Com Mr. Kamilas is a Business Administration Lead and Accounts Manager having 17+ years of Administration and Accounts experience in Oman and India. He joined Alara Resources in 2011 and has been involved in business activities related to company administration, banking, Insurance, finance, procurements, logistics, tax compliance and tenders Mr. Kamilas has utilized his experiences and skills in improving the administrative and finance system in the organisation and providing his full support to the team to build a robust management system as a solid foundation for future corporate developments Mr. Kamilas also Leading the Core drilling Operations in Oman and dealing with Various client and govt organisation since 2018. SANJAY CHOUDHARY General Manager Mining Phd. In Mining, MBA A highly experienced mining professional, involved in a diverse array of mining consulting projects spanning over 19 years. Area of specialisation include short term and long term mine planning and scheduling along with financial evaluation and risk analysis. He holds a proven track record of optimizing production schedules, implementing advanced resource management software, and successfully collaborating with major industry players. His expertise extends to a broad range of minerals, including copper, bauxite, limestone, coal, lignite, and iron ore. Throughout the career, he is privileged to work on projects with leading organisations such as Coal India, Hindalco Industries Ltd., Ultratech Cement, Kazakhmys Corporation in Kazakhstan, and Jindal Steel. His extensive hands-on expertise in mining software, including MineScape and Datamine, has proven to be invaluable in delivering measurable results and driving successful outcomes. In his previous role as Manager of Technical Services and Operation Head in India at Datamine International, he led a team that provided consulting, project management, and technical support across India and international operations, consistently delivering results by improving mine planning systems and ensuring regulatory compliance. Management Support Team 30 Alara Resources Annual Report 2024 NISHITH C. UDYAVARA Head of Human Resources MSW – (Human Resources) Nishith is a seasoned and strategic Human Resources professional with over 17+ years of global experience across India, UAE, and Oman. Nishith’s international exposure, especially in diverse industries like manufacturing, hospitality, and greenfield projects, has equipped him with a deep understanding of HR best practices on a global scale He has a distinguished career working with renowned organisations such as Sodexo, Suzlon Energy & Manipal Group, where he has managed an entire HR gamut. Nishith excels in implementing HR strategies and driving cultural transformation initiatives that align with business objectives. His extensive experience across different geographies and sectors positions him as a versatile, results-driven HR professional with a track record of fostering high-performing teams and creating a positive workplace culture NEELABH DUBEY Head Marketing & Logistics Master of Management Science (Marketing), B. Tech. (Electrical & Electronics Engineering) Seasoned Sales and Marketing professional with 19+ years of experience across FMCG, telecom, and non-ferrous metal industry. Holds a Master of Management Science (Marketing) from University of Lucknow and a B.Tech. in Electrical & Electronics Engineering from United College of Engineering & Research, Allahabad. His previous assignment was as Chief Manager (Marketing) at Hindustan Copper Limited, a PSU under Ministry of Mines, Government of India, where he was responsible for large-scale export operations, including overseeing a $80 million Copper Concentrate export. Have extensive expertise in channel management, business development, contract negotiations, exports, logistics, and CRM with comprehensive industry experience in leading sales roles to drive growth and development. MANISH TOMAR Head of Geology M.Sc. in Applied Geology Resource Geologist with over 17 years in mining and exploration industry with specialisation in mineral resource estimation, geological modeling, and geostatistics. Proven expertise in developing 3D geological models and employing advanced grade-interpolation and resource classification techniques. Member of AusIMM and IMIC, he is competent person for mineral resource reporting in accordance with international reporting codes. Highly proficient in Datamine Studio, Supervisor, Leapfrog and other industry-leading software with specialisation in developing customized solutions. Worked extensively across commodities like lead-zinc-silver, gold, copper, limestone, iron, bauxite, and coal. Significant hands-on experience gained through leadership roles at Hindustan Zinc Limited (HZL) and Datamine International, focusing on mining geology, resource estimation, classification, reconciliation and reporting. In previous assignment headed R&R and Database at Hindustan Zinc Limited, primarily responsible for public release of annual R&R statements of all assets of Hindustan Zinc and providing technical oversight to the exploration and mining geology teams. Management Support Team 31 Alara Resources Annual Report 2024 MARWAN ABDULLAH AL BUSAIDI Project Control Manager/ Govt Relations Office Bachelor’s in Arts and Science, Geography & Population Studies Mr. Marwan Abdullah Al-Busaidi is an experienced in Technical and Administrative with over 6 years of experience in various sectors in Oman. He joined AHRL in August 2022 and has since been involved in many aspects of the business including managing the utilities providers in Oman, managing import- export requirements and customs clearance, taxation regulations, working with Oman Vision 2040 Implementation (ISFU), and major Ministries. Mr. Marwan plays in key role in maintaining infrastructure operations, ensuring compliance with government policies, control of project documentation and applications for government licenses and permits. Mr. Marwan holds a set of professional training certificates in Population and Social Statistics & Survey. AMJAD AL SHARJI HSE Manager Dip (Civil Engg.), IOSH, NEBOSH Mr. Amjad Al Sharji is an experienced HSE Manager with over 6 years of experience in various sectors in Oman. He joined AHRL in October 2021. Prior to this, he worked as a consultant with MMC and dealt with a number of electricity companies such as OETC an and Mazoon. He holds a set of professional HSE training certificates. He has experience in electrical safety, stations, transmission lines, electrical transfers, hilly areas, construction, and food safety. He worked to reduce the incidence of accidents, risks and environmental damage and participated in developing safety standards, raizing awareness of the importance of health and safety. ASILA AHMED SAID AL HARTHY Environmental Engineer Bachelors in Chemical Engineering Ms. Asila Al-Harthy has been part of Al-Hadeetha Resources since November 2022 and is a Chemical Engineer with experience in oil refineries and environmental assessment. She has strong expertise in oil refineries and chemical industries. She has been involved in environmental research combating the environmental impact of mining. She focuses on monitoring Environmental Impact Assessment such as noise and emissions monitoring, air quality, ground water quality, handling chemicals and handling waste in most environmentally sustainable manner. Management Support Team 32 Alara Resources Annual Report 2024 ZAHRA ALBATTASHI Administration/Accounts Support Dip Acctg. and Bus. Admin. (Muscat College) Ms. Albattashi has over 4 years’ experience in the field of reception, office administration and foreign exchange. She joined the company in March 2022. She handles SAP data entry and serves as the Company’s liaison with Government departments for project-related licenses. Prior to joining AHRL she worked for the Superior Care C.O. LLC in administration and accounting and, prior to that, worked at an international currency exchange, handling exchange transactions and transferring money. LUJAINA ALBALUSHI Human Resource Manager Bachelors in Human Resources and Marketing Ms. Lujaina Al-Balushi is a Human Resources manager, she joined AHRL February 2023 after graduating from the Modern College of Business & Science with Bachelor’s in human resources and Marketing. Prior to working with AHRL, Ms. Lujaina worked in Customer Service in compliances such as Bank Dhofar and Al Saher Company. HAITHAM AL BUSAIDII Human Resource & Admin Bachelors in Human Resources Haitham Al Busaidi is a dedicated and dynamic Human Resources professional with a strong academic foundation in HR management and a proven track record in both administrative and HR roles. Currently working as a Human Resource & Admin Officer at AL Hadeetha Resources LLC, he has developed key skills in recruitment and employee Relations. With a bachelor’s degree in human resources management and internships in diverse sectors, Haitham brings a blend of practical experience and a passion for fostering positive workplace environments. Fluent in both Arabic and English. Management Support Team 33 Alara Resources Annual Report 2024 MANISH GURJAR Mines Manager B.Tech in Mining. Mechanical Diploma Mining Professional with over 7 years of multi-commodity experience in open pit mining, specializing in mine management, drilling and blasting, contract management planning, regulatory compliance, and sustainable mining practices. Holder of a First Class Mine Manager Certificate, demonstrating a strong commitment to safety and operational excellence. Proven track record in overseeing efficient mine operations, particularly in lead, zinc, iron and chromite commodities. Previously exemplified by his role as Deputy Manager of Mine Operations at Tata Steel. Skilled in strategic project planning & sustainable development practices, He excel at optimizing resource extraction while adhering to industry regulations and sustainability initiatives. His ability to lead cross-functional teams and manage complex projects positions as a valuable asset in advancing operational goals and driving continuous improvement within the mining sector. MIRZA RIAJ BAIG Electrical Maintenance Lead B.Tech, Electrical Engineering Mr. Mirza has over 14 years of experience in Commissioning, Operations & Maintenance in Metal and Mining industries in India and Saudi Arabia. He has worked with leading companies like Kirloskar Ferrous, Vedanta Aluminium, Ma’aden Bauxite & Alumina Company, and Tata Power. He has an extensive background in plant maintenance activities in Metal, Mining and Power sector. He has been responsible for Critical Troubleshooting, Emergency Power Restoration and Maintenance work execution with utmost Safety standard. Currently he is leading the electrical team for overall plant operation and maintenance. MOHAMMAD IMROZ AHMAD Process Superintendent B.Tech (Chemical Engineering) and MBA (Business Analytics) Mr. Mohammad Imroz has 15+ years of diverse experience in project commissioning, operations, procurement, and technical services in the metal & mining industries in India. Before joining AHRL, he worked with leading metal & mining companies in India such as Hindalco Industries (Aditya Birla Group) where he was involved in process and technical services for 10+ years. Before ABG he was associated with Vedanta Resources Plc for 5 years and worked in different units like Pantnagar Metal Plant (HZL), Vedanta Aluminium. He has extensive experience in greenfield and brawn field projects and commissioning. He has significant experience in CAPEX & OPEX planning, training and development, and system implementation in the plant. Management Support Team 34 Alara Resources Annual Report 2024 NISHU KHAN Manager Technical Purchase and Inventory Control B.Tech, Mechanical Engineering (Aligarh Muslim University) Mr. Nishu has 14+ years of diverse experience in maintenance, commissioning, and project operations. He worked with leading companies such as Hindustan Zinc Limited and Vedanta Resources, prior to joining AHRL. Nishu has wide experience in Alumina Refinery, Aluminium Smelter, Zinc and Lead Beneficiation Plant, Silver Refinery, Zinc & Lead Casting and Melting Unit and Thermal Power Plant. He has been engaged in initiating, implementing, and managing the plant maintenance program based on best practices in the industry, with an emphasis on planning & scheduling and preventive & predictive maintenance. He has a good command in ERP systems such as SAP PM and MM modules. He is certified in First Aid from the Red Cross Society, Aluminium Smelter Training Certification from Chalco Guangzhou – China, Hydraulics and Pneumatics Maintenance Certification from CRISP, Conveyor Maintenance Certification from Martin, Hydraulics Level-2 Maintenance Certification from EATON, Coating and Lining Certification by MARCEP and many others. JAI PRAKASH MEEL Mechanical Maintenance Lead B.Tech (Mechanical Engineering) A Dynamic Mechanical Engineer with nearly 16 years of extensive experience in operations, maintenance, and project management within the minerals processing and production plant industries. In previous assignment he served as Manager Mechanical Maintenance at Somika Group in DR Congo. His expertise includes managing complex mechanical operations, overseeing the installation and maintenance of various equipment, and optimizing processes to enhance performance and safety. Adept at technical problem-solving, project budgeting, and inventory control, with a strong commitment to continuous improvement and team collaboration. BHERU SINGH Instrumentation Lead B.Tech (Electronics Instrumentation and Control Engineering) A Dynamic engineering professional with over 14 years of extensive experience in Commissioning Operations & Power Plant Maintenance and Instrumentation & Control (I&C), specializing in DCS and PLC configuration, fault diagnosis, and performance improvement projects. Adept at managing critical operations, enhancing process safety, and implementing digitalisation initiatives, with a proven ability to lead teams and foster strong relationships. Known for strong analytical and problem-solving skills, committed to optimizing asset performance and achieving organisational objectives in fast-paced environments. Prior to joining AHRL, he worked with Kepco Plant Services and Engineering Co. Ltd. Management Support Team 35 Alara Resources Annual Report 2024 2024 DIRECTORS’ REPORT The Directors present their report on Alara Resources Limited (Company or Alara or AUQ) and the entities it controlled at the end of or during the financial year ended 30 June 2024 (the Consolidated Entity). Alara Resources Annual Report 2024 36 Material Business Risks The Company’s future revenue projections are strongly linked to the world copper price. The copper price is, in turn, dependent on demand for copper, particularly the extent to which that demand may increase in connection with the anticipated transition of the world’s vehicle fleet to electric power. At the date of this report the LME spot copper price is USD 9982.50 per tonne, relatively close to its historic high of $10,856.50 in May this year. Projections for copper demand are favourable to the Company. Demand is projected to significantly exceed supply for at least the next five years. The Company’s mine has a life of 10 years. The Company’s copper-gold mine is in Oman. Oman has a history of political stability. No change to that state of affairs is anticipated in the foreseeable future. The Company maintains good relations with landowners in the vicinity of its project. There are no indigenous landholdings in the area. Environmental risks in the Company’s mine are modest and are being managed with appropriate systems and technology. The risk of an environmental incident are considered low and easily manageable. The Company considers that the risk to its social licence is low and manageable. Mineral Tenements The current status of all mineral tenements and applications for the Daris and Awtad Projects are presented in the table below. Block Name Licence Owner Alara JV Interest Exploration Licence Mining Licence within EL Area Date of Grant Date of Expiry Status Area Date of Application Status Block 7 Al Tamman Trading and Est. LLC 50% (earn into 70%) 587km2 Nov 2009 Feb 2016 Pending Daris 345 & East Resub- mitted 2018 Pending Block 8 Awtad Resources LLC 10% (earn into 70%) 597km2 Nov 2009 Oct 2013 Active N/A N/A N/A Corporate Information Alara is a company limited by shares incorporated in Western Australia. Principal Activities The principal activities of entities within the Consolidated Entity during the year were the exploration, evaluation and development of mineral exploration licenses in Oman. Significant Changes in the State of Affairs There have been no significant changes in the state of affairs of the Consolidated Entity save as otherwise disclosed in this Directors’ Report or the financial statements and notes thereto. Dividends No dividends have been paid or declared during the financial year. Directors’ Report 37 Alara Resources Annual Report 2024 Operating Results 2024 $ 2023 $ Consolidated Total revenue 5,500,421 25,297 Total expenses (16,125,650) (2,757,689) Profit/loss before tax (10,625,229) (2,732,392) Income tax benefit – – Profit/loss after tax (10,625,229) (2,732,392) Profit/(Loss) per Share 2024 2023 Consolidated Basic profit/(loss) per share (cents) (0.81) (0.27) Diluted profit/(loss) per share (cents) (0.81) (0.27) Weighted average number of ordinary shares outstanding during the year used in the calculation of basic loss per share 718,087,541 715,810,289 Weighted average number of ordinary shares outstanding during the year used in the calculation of diluted loss per share 718,920,791 718,015,877 Cash Flows 2024 $ 2023 $ Consolidated Net cash flow used in operating activities (12,000,778) (1,554,524) Net cash flow from investing activities (19,088,862) (51,981,341) Net cash flow provided by financing activities 31,794,218 54,690,693 Net change in cash held 704,578 1,154,828 Effect of exchange rates on cash (5,511) 52,126 Cash held at year end 4,355,812 3,656,745 Directors’ Report 38 Alara Resources Annual Report 2024 Financial Position Outlined below is the Consolidated Entity’s financial position and prior year comparison. 2024 $ 2023 $ Consolidated Cash 4,355,812 3,656,745 Trade and other receivables 4,842,437 924,905 Exploration & evaluation 4,689,128 4,713,750 Mine properties & development assets 83,191,138 98,618,098 Investment in associates 354,716 151,558 Term deposits 329,963 802,710 Other current assets 141,742 142,440 Inventory 7,212,316 Advance to Subcontractors 1,805,416 5,990,041 Non-Current assets 65,027,286 2,660,045 Total assets 171,949,954 117,660,291 Trade and other payables 53,797,327 21,566,739 Financial liabilities 97,183,638 66,837,435 Provisions 364,199 175,195 Total liabilities 151,345,164 88,579,369 Net assets 20,604,790 29,080,923 Issued capital 68,722,146 68,722,146 Reserves 15,061,404 14,254,956 Accumulated losses (65,085,620) (59,292,998) Parent interest 18,697,930 23,684,104 Non-controlling interest 1,906,860 5,396,8159 Total equity 20,604,790 29,080,923 Issued Capital Fully paid ordinary shares, listed options and unlisted options on issue in the Company as at the date of this report are as follows: Fully paid shares quoted on ASX Listed options Unlisted options Securities 718,087,541 – 182,854,885 Total 718,087,541 – 182,854,885 900,942,426 Unlisted Options No unlisted options were issued during the reporting period. Directors’ Report 39 Alara Resources Annual Report 2024 Likely Developments and Expected Results During the 2024-25 financial year the Consolidated Entity intends to rectify the issue with the tailing filter press (discussed above) in the copper-gold processing plant at the Al Wash-hi Majaza mine to bring the plant up to full production capacity. The Company will continue the production and sale of copper and gold from the mine. The Company intends to continue exploration, evaluation and development activities in relation to its other mineral exploration licences in Oman, and to apply for and participate in option processes for the award of further exploration licences in Oman and Saudi Arabia, in the 2024-25 financial year. The likely results of these activities will depend on a range of geological, technical and economic factors. Environmental Regulation and Performance The Consolidated Entity holds licences and abides by Acts and Regulations issued by the relevant mining and environmental protection authorities of the countries in which the Consolidated Entity operates. These licences, Acts and Regulations specify limits and regulate the management of discharges to the air, surface waters and groundwater associated with exploration and mining operations as well as the storage and use of hazardous materials. There have been no significant breaches of the Consolidated Entity’s licence conditions. Board of Directors The Directors of the Company in office during the financial year and until the date of this report are as follows: — Stephen Gethin, Chairman — Atmavireshwar Sthapak, Managing Director — Vikas Jain — Sanjeev Kumar — Devaki Khimji — Farrokh Masani The qualifications, experience and special responsibilities of the Directors are provided on pages 26 to 27. Directors’ Interests in Shares and Options As at the end of the reporting period, the relevant interests of the Directors in shares and options held in the Company are: Director Fully Paid Ordinary Shares Options Stephen Gethin 1,500,000 – Atmavireshwar Sthapak 3,862,051 3,333,000 Vikas Jain 37,745,930 – Sanjeev Kumar – – Devaki Khimji – – Farrokh Masani 12,142,581 – Directors’ Meetings The number of meetings and resolutions of Directors (including meetings of committees of directors) held during the year and the number of meetings (or resolutions) attended by each Director were as follows: Director Appointment/ Resignation Board Audit Committee Remuneration and Nomination Committee Meetings Attended Max Possible Meetings Attended Max Possible Meetings Attended Max Possible Stephen Gethin 28 Jun 2020 8 9 2 2 0 0 Atmavireshwar Sthapak 22 Sep 2015 9 9 2 2 – – Vikas Jain 6 Apr 2016 9 9 2 2 0 0 Sanjeev Kumar 23 Oct 2020 8 9 – – – – Devaki Khimji 2 Feb 2022 8 9 – – – – Farrokh Masani 2 Feb 2022 6 9 – – – – Directors’ Report 40 Alara Resources Annual Report 2024 Audit Committee The Audit Committee currently comprises Non-Executive Directors Vikas Jain (Committee Chairman) (appointed 6 April 2016), Non-Executive Company Chairman Stephen Gethin (appointed 2 July 2020) and Managing Director Atmavireshwar Sthapak (appointed 28 September 2016). The Audit Committee has a formal charter to prescribe its objectives, duties and responsibilities, access and authority, composition, membership requirements of the Committee and other administrative matters. Its function includes reviewing and approving the audited annual and reviewed half-yearly financial reports, ensuring a risk management framework is in place, reviewing and monitoring compliance issues, reviewing reports from management and matters related to the external auditor. The Audit Committee Charter may be viewed and downloaded from the Company’s website. Remuneration Report The information in this Remuneration Report has been audited. This Remuneration Report details the nature and amount of remuneration for each Director and Company Executive (being a Company Secretary or senior manager with authority and responsibility for planning, directing and controlling the major activities of the Company or Consolidated entity, directly or indirectly) (Key Management Personnel or KMP) of the Consolidated Entity in respect of the financial year ended 30 June 2024. Directors Stephen Gethin Chairman Atmavireshwar Sthapak Managing Director Vikas Jain Non-Executive Director Sanjeev Kumar Non-Executive Director Devaki Khimji Non-Executive Director Farrokh Masani Alternate Director Executives Dinesh Aggarwal Company Secretary Avigyan Bera CEO, AHRL Mohammed Qamar GM Plant Operations, AHRL Mobashirul Hoda HSC Head, AHRL Mohammad Imroz Process Superintendent, AHRL Ahmad Nishith Chandra Head of HR, AHRL Gautam Jain Financial Controller, AHRL Remuneration and Nomination Committee The Remuneration and Nomination Committee currently comprises Non-Executive Board Chairman, Stephen Gethin (Committee Chairman, appointed 2 July 2020), Non-Executive Director, Vikas Jain (appointed 6 April 2016) and Managing Director Atmavireshwar Sthapak appointed 28 June 2016). The Remuneration and Nomination Committee has a formal charter to prescribe its purpose, key responsibilities, composition, membership requirements, powers and other administrative matters. The Committee has a remuneration function (with key responsibilities to make recommendations to the Board on policy governing the remuneration benefits of the Managing Director and Executive Directors, including equity-based remuneration and assist the Managing Director to determine the remuneration benefits of senior management and advise on those determinations) and a nomination function (with key responsibilities to make recommendations to the Board as to various Board matters including the necessary and desirable qualifications, experience and competencies of Directors and the extent to which these are reflected in the Board, the appointment of the Chairman and Managing Director, the development and review of Board succession plans and addressing Board diversity). The Remuneration and Nomination Committee Charter may be viewed and downloaded from the Company’s website. Directors’ Report 41 Alara Resources Annual Report 2024 Remuneration Policy The Board (with guidance from the Remuneration and Nomination Committee) determines the remuneration structure of all Key Management Personnel having regard to the Consolidated Entity’s strategic objectives, scale and scope of operations and other relevant factors, including experience and qualifications, length of service, market practice, the duties and accountability of Key Management Personnel and the objective of maintaining a balanced Board which has appropriate expertise and experience, at a reasonable cost to the Company. The Board recognises that the performance of the Company depends upon the quality of its Directors and Executives. To achieve its financial and operating objectives, the Company must attract, motivate and retain highly skilled Directors and Executives. The Company embodies the following principles in its remuneration framework: — Provide competitive rewards to attract and retain high calibre Executives. — Structure remuneration at a level that reflects the Executive’s duties and accountabilities and is competitive. Remuneration Structure The structure of Non-Executive Director and Executive Director remuneration is separate and distinct. Director Remuneration Objective The Board seeks to set aggregate remuneration (for Directors) at a level which provides the Company with the ability to attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders. Structure Each Non-Executive Director receives a fee for serving as a Director of the Company and on relevant Board Committees, if applicable. The level of each Non- Executive Director’s fee is commensurate with the workload and responsibilities undertaken. According to the Company’s Constitution and the ASX Listing Rules, the aggregate remuneration of Non-Executive Directors must not exceed an amount determined by the Shareholders from time to time at a General Meeting (Non-Executive Fee Pool). An amount up to the Non- Executive Fee Pool is then allocated among the Non- Executive Directors as Directors’ fees, as determined by the Board on the recommendation of the Remuneration and Nomination Committee (Remuneration Committee). The Non-Executive Fee Pool, set by Shareholders at the Annual General Meeting held on 26 May 2011, is AUD 275,000 per annum. Shareholders determined the amount of the Non-Executive Fee Pool having regard to the recommendation of the Board. That recommendation was, in turn, based on the recommendation of the Remuneration Committee, made based on a consideration of fees paid to non- executive directors of comparable companies. Managing Director and Senior Executive Remuneration Objective The Company aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the Company and so as to ensure total remuneration is competitive by market standards. Formal employment contracts are entered into with the Managing Director and senior executives. Details of these contracts are outlined later in this report. Directors’ Report 42 Alara Resources Annual Report 2024 Consequences of Company Performance on Shareholder Wealth In considering the Company’s performance and creation of value for shareholders, the Board had regard to the following information in relation to the current financial year and the previous four years: Item 2024 2023 2022 2021 2020 Total Equity (AUD) 20.9m 29.1m 22.9m 21.5m 22.9m Basic earnings/(loss) per share (AUD) (0.81) (0.27) (0.19) (0.24) 0.04 Net Profit/(Loss) attributable to members (AUD) (5,792,626) (1,914,019) (1,316,222) (1,622,329) 273,985 Market Capitalisation (AUD) 35.9m 20.1m 31.0m 9.9m 8.3m Fixed Remuneration During the financial year, the Key Management Personnel of the Company are paid a fixed base salary/fee per annum plus applicable employer superannuation contributions, as detailed below (Details of Remuneration Provided to Key Management Personnel). Performance Related Benefits/Variable Remuneration Performance-related benefits/variable remuneration payable to Key Management Personnel is disclosed in the table Details of Remuneration Provided to Key Management Personnel. Current Managing Director Atmavireshwar Sthapak was paid allowances including housing and vehicle allowances and medical insurance. Special Exertions and Reimbursements Pursuant to the Company’s Constitution, each: — Non-Executive Director is entitled to receive payment for the performance of extra services, or the undertaking of special exertions, at the request of the Board for Company purposes. — Each Director is entitled to reimbursement of all reasonable expenses (including traveling and accommodation) which they incur for the purpose of attending Board and Board Committee meetings, the business of the Company, or in performing their duties as a Director. Post-Employment Benefits Other than employer contributions to nominated complying superannuation funds (where applicable) and entitlements to accrued unused annual and long service leave (where applicable), the Company does not provide retirement benefits to Key Management Personnel. The Company notes that Shareholders’ approval is required where a Company proposes to make a “termination payment” (for example, a payment in lieu of notice, a payment for a post-employment restraint and payments made as a result of the automatic or accelerated vesting of share based payments) in excess of one year’s “base salary” (defined as the average base salary over the previous 3 years) to a Director or any person who holds a managerial or executive office. Long-Term Benefits Other than early termination benefits disclosed in “Employment Contracts” below, Key Management Personnel have no right to termination payments, save for payment of accrued unused annual and long service and/or end of service leave (where applicable). Directors’ Report 43 Alara Resources Annual Report 2024 Details of Remuneration Provided to Key Management Personnel Key Management Personnel Perfor- mance based Short-term benefits Post-employment benefits Other long-term benefits Equity based benefits Fixed At risk STI Option related Salary and fees Allow­ ances(1) Cash Bonus Non- cash(2) Other(3) Superan­ nuation Termina­ tion Other Options Total 2024 % % % % $ $ $ $ $ $ $ $ $ $ Executive Director Atmavireshwar Sthapak – 100% – – 372,743 27,840 – – – – – 31,062 – 431,645 Non-Executive Directors Stephen Gethin – 100% – – 82,500 – – – – – – – – 82,500 Vikas Jain – 100% – – 50,000 – – – – – – – – 50,000 Sanjeev Kumar – 100% – – 25,000 – – – – – – – – 27,523 Devaki Khimji – 100% – – 27,500 – – – – – – – – 27,500 Farrokh Masani – 100% – – – – – – – – – – - Company Secretary Dinesh Aggarwal(4) – 100% – – 47,317 – – – – – – – – 47,317 Chief Executive Officer – AHRL Avigyan Bera – 100% – – 81,538 25,626 – – – – – – – 107,164 Mohammed Qamar – 100% – – 81,538 34,945 – – – – – – – 116,483 Mobashirul Hoda – 100% – – 60,571 23,296 – – – – – – – 83,867 MD Imroz Khan – 100% – – 44,263 41,934 – – – – – – – 86,197 Nishith Chandra – 100% – – 9,707 6,057 – – – – – – – 15,764 Gautam Jain – 100% – – 11,648 6,212 – – – – – – – 17,860 (1) Allowances are based on the executive employment agreement and may include expat allowance, company car allowance, rent allowance and security bond and school-fee allowance received from subsidiaries and related joint venture entities. (2) Non-cash benefits include net leave and/or end of service gratuity accrued or paid to relevant labour laws. (3) Other short-term benefits consist of exchange gain/(loss) due to foreign currency translation from Oman Riyal to Australia Dollars on Mr. Bera’s salary. (4) Remuneration, in his capacity as Company Secretary, paid to Fortuna Advisory Group. Key Management Personnel Perfor- mance based Short-term benefits Post-employment benefits Other long-term benefits Equity based benefits Fixed At risk STI Option related Salary and fees Allow­ ances(1) Cash Bonus Non- cash(2) Other Superan­ nuation Termina­ tion Other Options Total 2023 % % % % $ $ $ $ $ $ $ $ $ $ Executive Director Atmavireshwar Sthapak – 100% – – 355,718 27,740 – – – – – 31,293 – 414,751 Non-Executive Directors Stephen Gethin – 100% – – 75,000 – – – – – – – – 75,000 Vikas Jain – 100% – – 50,000 – – – – – – – – 50,000 Sanjeev Kumar – 100% – – 23,935 – – – – 2,523 – – – 26,458 Devaki Khimji – 100% – – 16,042 – – – – – – – – 27,500 Farrokh Masani – 100% – – – – – – – – – – - Company Secretary Dinesh Aggarwal(3) – 100% – – 110,400 – – – – – – – – 110,400 Chief Executive Officer – AHRL Avigyan Bera – 100% – – 79,798 26,795 – – – – – 3,423 – 110,016 (1) Allowances are based on the executive employment agreement and may include expat allowance, company car allowance, rent allowance and security bond and school-fee allowance received from subsidiaries and related joint venture entities. (2) Non-cash benefits include net leave and/or end of service gratuity accrued or paid to relevant labour laws. (3) Appointed 2 July 2020. Remuneration, in his capacity as Company Secretary, paid to Fortuna Advisory Group. Directors’ Report 44 Alara Resources Annual Report 2024 Equity Based Benefits The Company provided no equity based benefits (e.g. grant of shares or options) to Key Management Personnel during the financial year. No shares were issued as a result of the exercise of options held by Key Management Personnel during the financial year. Options Lapsed During the Year The following options lapsed or were cancelled during the reporting period. — 1,666,000 options (issued to Managing Director Atmavireshwar Sthapak on 23 December 2021 each exercisable over one fully paid, ordinary, share in the Company with an exercise price of AUD 0.03 per share) expired on 30 April 2024. — 2,500,000 options (issued to Managing Director Atmavireshwar Sthapak on 23 December 2021 each exercisable over one fully paid, ordinary, share in the Company with an exercise price of AUD 0.03 per share) expired on 30 June 2024. Details of Shares Held by Key Management Personnel 2023-2024 Director/KMP Ordinary Fully Paid Shares Balance at 1 July 2023 Balance at appointment(1) Net change Balance at cessation1 Balance at 30 June 2024 Stephen Gethin 1,500,000 – 1,500,000 Atmavireshwar Sthapak 3,862,051 – 3,862,051 Vikas Jain 37,745,930 – 37,745,930 Sanjeev Kumar – – – Dinesh Aggarwal 8,555,725 – 8,555,725 Devaki Khimji – – – Farrokh Masani 10,676,187 1,466,394 12,142,581 (1) Applies where the Director was appointed, or ceased as a Director, during the reporting period. 2022–2023 Director/KMP Ordinary Fully Paid Shares Balance at 1 July 2022 Balance at appointment(1) Net change Balance at cessation1 Balance at 30 June 2023 Stephen Gethin – 1,500,000 1,500,000 Atmavireshwar Sthapak 3,862,051 – 3,862,051 Vikas Jain 37,745,930 – 37,745,930 Sanjeev Kumar – – – Dinesh Aggarwal 6,055,725 2,500,000 8,555,725 Devaki Khimji – – – – Farrokh Masani 10,422,687 – 253,500 10,676,187 (1) Applies where the Director was appointed, or ceased as a Director, during the reporting period. Details of Options Held by Key Management Personnel The only options held by Key Management Personnel are those disclosed above under the heading “Equity Based Benefits”. Directors’ Report 45 Alara Resources Annual Report 2024 Employment Contracts (a) Managing Director – Atmavireshwar Sthapak Atmavireshwar Sthapak was appointed Managing Director on 27 July 2020. The material terms of his contract in effect during the reporting period were as follows5: — Annual base salary of AUD 324,278 per annum; — Housing allowance of up to AUD 41,406 per annum; — Vehicle allowance – up to AUD 77,637 per annum, plus pay the costs of keeping the vehicle fuelled, maintained and registered; — Compulsory statutory “end of service” payments due under Oman Labour Law; — Standard annual leave (20 days) and personal/ sick leave (10 days paid) entitlements plus any additional entitlements prescribed under Oman Labour Law; and — Either party may terminate the agreement by providing three months’ notice. — Long-term incentive: The Managing Director’s Options, as detailed above formed part of his long- term incentive but since the end of the reporting period have now all expired. (b) Other Executives Details of the material terms of formal employment/ consultancy agreements (as the case may be) between the Company and other Key Management Personnel during the period are as follows: KMP Postion(s) held Base Salary/Fees per annum Other Key Terms Stephen Gethin Chairman AUD 75,000 plus GST per annum. N/A Dinesh Aggarwalt Company Secretary The Company pays Fortuna Advisory Group AUD 110,400 as a combined amount for Company Secretarial and Chief Financial Officer services. Mr Aggarwal is a consultant to Fortuna Advisory Group through Fortuna Accountants and Business Advisors, of which he is Managing Director. N/A Other Benefits Provided to Key Management Personnel No Key Management Personnel has during or since the end of the financial year, received or become entitled to receive a benefit, other than a remuneration benefit as disclosed above, by reason of a contract made by the Company or a related entity with the Director or with a firm of which he is a member, or with a Company in which he has a substantial interest. There were no loans to directors or executives during the reporting period. Employee Share Option Plan The Company has an Employee Share Option Plan (the ESOP) which was most recently approved by shareholders at the 2017 Annual General Meeting. The ESOP was developed to assist in the recruitment, reward, retention and motivation of employees (excluding Directors) of Alara. Under the ESOP, the Board will nominate personnel to participate and will offer options to subscribe for shares to those personnel. A summary of the terms of ESOP is set out in Annexure A to Alara’s Notice of Annual General Meeting and Explanatory Statement for its 2017 AGM. Director’s Loan Agreements There were no loan agreements with the Directors during the year. Securities Trading Policy The Company has a Securities Trading Policy, a copy of which is available for viewing and downloading from the Company’s website. Directors’ Report 46 Alara Resources Annual Report 2024 Voting and Comments on the Remuneration Report at the 2023 Annual General Meeting At the Company’s most recent Annual General Meeting (AGM), a resolution to adopt the Remuneration Report for the previous reporting period was put to a shareholders’ vote and passed unanimously on a show of hands with the proxies received also indicating 99.31% support for adopting the Remuneration Report.(1) No comments were made on the Remuneration Report at the AGM. (1) Refer Alara’s 17 November 2017 ASX Announcement: Results of Meeting. Engagement of Remuneration Consultants The Company did not engage a remuneration consultant during the year. The Board has established a policy for engaging external remuneration consultants. The policy includes a requirement for the Remuneration and Nomination Committee to: — approve all engagements of remuneration consultants; — receive remuneration recommendations from remuneration consultants (to the exclusion of persons not members of the Committee) regarding Key Management Personnel; and — ensure that the making of remuneration recommendations is free from undue influence by the member or members of the Key Management Personnel to whom the recommendation relates. This concludes the audited Remuneration Report. Directors’ and Officers’ Insurance The Company insures Directors and Officers against liability they may incur in respect of any wrongful acts or omissions made by them in such capacity (to the extent permitted by the Corporations Act 2001) (D&O Policy). Details of the amount of the premium paid in respect of the D&O Policy is not disclosed as such disclosure is prohibited under the terms of the policy. Directors’ Deeds In addition to the rights of indemnity provided under the Company’s Constitution (to the extent permitted by the Corporations Act), the Company has also entered into a deed with each of the Directors and the Secretary (each an Officer) to regulate certain matters between the Company and each Officer, both during the time the Officer holds office and after the Officer ceases to be an officer of the Company, including the following matters: — The Company’s obligation to indemnify an Officer for liabilities or legal costs incurred as an officer of the Company (to the extent permitted by the Corporations Act). — Subject to the terms of the deed and the Corporations Act, the Company may advance monies to Officers to meet any costs or expenses of the Officer incurred in circumstances relating to the indemnities provided under the deed and before the outcome of legal proceedings brought against the Officer. Legal Proceedings on Behalf of Consolidated Entity (Derivative Actions) No person has applied for leave of a court to bring proceedings on behalf of the Consolidated Entity or intervene in any proceedings to which the Consolidated Entity is a party for the purpose of taking responsibility on behalf of the Consolidated Entity for all or any part of such proceedings and the Consolidated Entity was not a party to any such proceedings during and since the financial year. Directors’ Report 47 Alara Resources Annual Report 2024 Auditor Details of the amounts paid or payable to the Company’s auditors (In.Corp Audit & Assurance Pty Ltd for the year ended 30 June 2024 and RSM Chartered Accountants for the Oman entity audits) for audit and non-audit services provided during the financial year are set out below (refer to Note 5 of the Notes to the Consolidated Financial Statements): Audit and Review Fees $ Fees for Other Non-Audit Services $ Total $ 35,617 – 35,617 No non-audit services were provided by the Auditors during the year. Auditor’s Independence Declaration A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 forms part of this Directors Report and is set out on page 49. Events Subsequent to Reporting Date The Directors are not aware of any matters or circumstances at the date of this Directors’ Report, other than those referred to in this Directors’ Report or the financial statements or notes thereto, that have significantly affected or may significantly affect the operations, the results of operations or the state of affairs of the Company and Consolidated Entity in subsequent financial years. Signed for and on behalf of the Directors in accordance with a resolution of the Board: Atmavireshwar Sthapak Managing Director 30 September 2024 Directors’ Report 48 Alara Resources Annual Report 2024 In.Corp Audit & Assurance Pty Ltd ABN 14 129 769 151 Level 1 6-10 O’Connell Street SYDNEY NSW 2000 Suite 11, Level 1 4 Ventnor Avenue WEST PERTH WA 6005 GPO BOX 542 SYDNEY NSW 2001 T +61 2 8999 1199 E team@incorpadvisory.au W incorpadvisory.au To the directors of Alara Resources Limited: AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 Liability limited by a scheme approved under Professional Standards Legislation In.Corp Audit & Assurance Pty Ltd Daniel Dalla Director 30 September 2024 As lead auditor of the audit of Alara Resources Limited for the year ended 30 June 2024, 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 • no contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Alara Resources Limited and the entities it controlled during the year. 49 Alara Resources Annual Report 2024 Alara Resources Annual Report 2024 50 2024 FINANCIAL REPORT Annual Report 2024 Alara Resources 51 Note 2024 $ 2023 $ Revenue 3 5,462,901 – Other income 3 37,520 25,297 Gain/(Loss) on Forex 3 74,313 (72,793) Production (3,267,721) – Personnel (2,737,044) (936,187) Occupancy costs (266,434) (46,225) Finance expense (2,216,834) (14,641) Corporate expenses (86,279) (204,750) Administration expenses (1,396,991) (771,907) Share of profit/(losses) of associates 11 203,158 52,638 Depreciation (6,431,684) (763,824) PROFIT/(LOSS) BEFORE INCOME TAX (10,625,095) (2,732,392) Income tax benefit 4 – – PROFIT/(LOSS) FOR THE YEAR (10,625,095) (2,732,392) Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 806,448 1,785,027 TOTAL OTHER COMPREHENSIVE INCOME/(LOSS) 806,448 1,785,027 TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR (9,818,647) (947,365) Profit/(loss) attributable to: Owners of Alara Resources Limited (5,792,626) (1,914,019) Non-controlling interest (4,832,602) (818,373) (10,625,228) (2,732,392) Total comprehensive income/(loss) for the year attributable to: Owners of Alara Resources Limited (4,986,178) (128,992) Non-controlling interest (4,832,602) (818,373) (9,818,780) (947,365) Earnings/loss per share: Basic earnings/(loss) per share cents 6 (0.81) (0.27) Diluted earnings/(loss) per share cents 6 (0.81) (0.27) The accompanying notes form part of this consolidated financial statement. Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2024 52 Alara Resources Annual Report 2024 Note 2024 $ 2023 $ Current assets Cash and cash equivalents 7 4,355,812 3,656,745 Trade and other receivables 8 4,842,437 924,905 Other current assets 9 141,742 142,440 Inventory 7,212,316 – Financial assets 10 329,963 802,710 TOTAL CURRENT ASSETS 16,882,270 5,526,800 Non-current assets Financial assets 10 806,042 507,651 Investment in Associate 11 354,715 151,557 Borrowing cost 12 480 482 Property, plant and equipment 13 36,423,933 2,151,911 Mine properties 13 100,537,641 98,618,098 Development assets 13 10,450,327 – Exploration and evaluation 14 4,689,128 4,713,750 Advance to Subcontractors 1,805,416 5,990,041 TOTAL NON-CURRENT ASSETS 155,067,684 112,133,492 TOTAL ASSETS 171,949,954 117,660,292 Current liabilities Trade and other payables 15 53,797,327 21,566,739 Provisions 16 364,199 175,195 Financial liability 17 19,099,990 19,791 TOTAL CURRENT LIABILITIES 73,261,516 21,761,725 Non-current liabilities Financial liabilities 17 78,083,648 66,817,644 TOTAL NON-CURRENT LIABILITIES 78,083,648 66,817,644 TOTAL LIABILITIES 151,345,164 88,579,369 NET ASSETS 20,604,790 29,080,923 Equity Issued capital 18 68,722,146 68,722,146 Reserves 19 15,061,404 14,254,956 Accumulated losses (65,085,620) (59,292,994) Parent interest 18,697,930 23,684,108 Non-controlling interest 1,906,860 5,396,815 TOTAL EQUITY 20,604,790 29,080,923 The accompanying notes form part of this consolidated financial statement. Consolidated Statement of Financial Position As at 30 June 2024 53 Alara Resources Annual Report 2024 Note Issued Capital $ Foreign Currency Translation Reserve $ Accumulated Losses $ Transactions with Minority Interests $ Non- Controlling Interest $ Total $ Balance as at 1 July 2022 68,233,860 3,876,076 (57,378,975) 8,593,853 (438,774) 22,886,040 Foreign currency translation reserve – 1,785,027 – – – 1,785,027 Net income and expense recognised directly in equity – 1,785,027 – – – 1,785,027 Transactions with minority interest – – – – 6,653,962 6,653,962 Profit/(Loss) for the year – – (1,914,019) – (818,373) (2,732,392) Total comprehensive income/(loss) for the year – 1,785,027 (1,914,019) 5,835,589 5,706,597 Transactions with owners in their capacity as owners: Share placement 488,286 – – – – 488,286 BALANCE AS AT 30 JUNE 2023 68,722,146 5,661,103 (59,292,994) 8,593,853 5,396,815 29,080,923 Balance as at 1 July 2023 68,722,146 5,661,103 (59,292,994) 8,593,853 5,396,815 29,080,923 Options expired – – – – – – Foreign currency translation reserve – 806,448 – – – 806,448 Net income and expense recognised directly in equity – 806,448 – – – 806,448 Transactions with minority interest – – – – 1,342,644 1,342,644 Profit/(Loss) for the year – – (5,792,626) – (4,832,599) (10,625,225) Total comprehensive income/(loss) for the year – 806,448 (5,792,626) – (3,489,955) (8,476,133) Transactions with owners in their capacity as owners: Share placement 19 – – – – – – Share placement costs 19 – – – – – – BALANCE AS AT 30 JUNE 2024 68,722,146 6,467,551 (65,085,620) 8,593,853 1,906,860 20,604,790 The accompanying notes form part of this consolidated financial statement. Consolidated Statement of Changes in Equity For the year ended 30 June 2024 54 Alara Resources Annual Report 2024 Note 2024 $ 2023 $ Cash flows from operating activities Receipts from customer/others 2,260,105 – Interest received 25,170 24,667 Payments to suppliers and employees (inclusive of GST) (14,286,053) (1,579,191) NET CASH FLOWS USED IN OPERATING ACTIVITIES 7b (12,000,778) (1,554,524) Cash flows from investing activities Payments for plant and equipment (191,829) (3,020,712) Payments for development and exploration expenditure (19,090,594) (49,188,469) Payments towards term deposits (193,753) (22,160) Loan to other entity (repayment) (104,688) – Proceeds from disposal and redemption of financial assets 492,002 250,000 NET CASH FLOWS USED IN INVESTING ACTIVITIES (19,088,862) (51,981,341) Cash flows from financing activities Capital contributed by non-controlling interests 1,342,644 6,653,964 Proceeds from issuing ordinary shares – 120,000 Proceeds from borrowings 30,451,574 47,920,749 Cost of issuing ordinary shares – (4,020) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 31,794,218 54,690,693 NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS HELD 704,578 1,154,828 Cash and cash equivalents at beginning of the financial year 3,656,745 2,449,791 Effect of exchange rate changes on cash (5,511) 52,126 CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 7 4,355,812 3,656,745 The accompanying notes form part of this consolidated financial statement. Consolidated Statement of Cash Flows For the year ended 30 June 2024 55 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 1. STATEMENT OF ACCOUNTING POLICIES Material Accounting Policy The principal accounting policies adopted in the preparation of these financial statements are set out below. The financial report includes the financial statements for the Consolidated Entity consisting of Alara Resources Limited and its controlled and jointly controlled entities. Alara Resources Limited is a company limited by shares, incorporated in Western Australia, Australia and whose shares are publicly traded on the Australian Securities Exchange (ASX). 1.1. Basis of preparation These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Alara Resources Limited is a for-profit entity for the purposes of preparing the financial statements. Compliance with IFRS The consolidated financial statements of the Consolidated Entity, Alara Resources Limited, also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Reporting Basis and Conventions The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied. Going Concern Assumption The financial statements have been prepared on the going concern basis of accounting which assumes the continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business. The Group has incurred a loss for the year ended 30 June 2024 of AUD 10,625,228 (2023: Loss AUD 2,732,392) and cash inflows/(outflows) from operating and investing activities of (AUD 31,089,640) (2023: (AUD 53,535,865)). As at 30 June 2024 the Group has a cash at bank balance of AUD 4,355,812 (2023: AUD 3,656,745), bank deposits of AUD 534,942 (2023: AUD 813,985) and working capital of AUD (56, 379,246) (2023: AUD 16,234,925). Related-party creditors of Al Hadeetha Resources LLC (AHRL), including the other shareholders in that JV company, which have contracts for the provision of various mining and construction services to AHRL, agreed subsequent to the balance date to defer current liabilities owing to them of AUD 43,014,201.50. The directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12-month period from the date of signing this financial report. Based on the cash flow forecast, the directors are satisfied that the going concern basis of preparation is appropriate. Notes to the Consolidated Financial Statements For the year ended 30 June 2024 56 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 1.2. Foreign Currency Translation and Balances Functional and presentation currency The functional currency of each entity within the Consolidated Entity is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity’s functional and presentation currency. Transaction and balances Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Exchange differences arising on the translation of monetary items are recognised in profit or loss, except where deferred in equity as a qualifying cash flow or net investment hedge. Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in profit or loss. Consolidated entity The financial results and position of foreign operations whose functional currency is different from the Consolidated Entity’s presentation currency are translated as follows: (a) assets and liabilities are translated at year-end exchange rates prevailing at that reporting date; (b) income and expenses are translated at average exchange rates for the period; and (c) retained earnings are translated at the exchange rates prevailing at the date of the transaction. Exchange differences arising on translation of foreign operations are transferred directly to the Consolidated Entity’s foreign currency translation reserve in the statement of financial position. These differences are recognised in profit or loss in the period in which the operation is disposed. 1.3. Joint Arrangements Joint arrangements exist when two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control, in the event the Company does not share control the financials are consolidated (or deconsolidated in the event of loss of control) (refer to 1.2 for further information). The Consolidated Entity’s joint arrangements are currently of one type: Joint operations Joint operations are joint arrangements in which the parties with joint control have rights to the assets and obligations for the liabilities relating to the arrangement. The activities of a joint operation are primarily designed for the provision of output to the parties to the arrangement, indicating that: — the parties have the rights to substantially all the economic benefits of the assets of the arrangement; and — all liabilities are satisfied by the joint participants through their purchases of that output. This indicates that, in substance, the joint participants have an obligation for the liabilities of the arrangement. 57 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 1.4. Comparative Figures Certain comparative figures have been adjusted to confirm to changes in presentation for the current financial year. 1.5. Critical Accounting Judgements and Estimates The preparation of the Consolidated Financial Statements requires Directors to make judgements and estimates and form assumptions that affect how certain assets, liabilities, revenue, expenses and equity are reported. At each reporting period, the Directors evaluate their judgements and estimates based on historical experience and on other various factors they believe to be reasonable under the circumstances, the results of which form the basis of the carrying values of assets and liabilities (that are not readily apparent from other sources, such as independent valuations). Actual results may differ from these estimates under different assumptions and conditions. Exploration and evaluation expenditure The Consolidated Entity’s accounting policy for exploration and evaluation expenditure being capitalised include the Daris Project where these costs are expected to be recoverable 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 or otherwise of economically recoverable reserves. In the case of the Al Hadeetha project, a maiden reserve announcement was issued in December 2016. This policy requires management to make certain estimates to future events and circumstances, in particular whether an economically viable extraction operation can be established. Any such estimates and assumptions may change as new information becomes available. If, after having capitalised the expenditure under the policy, a judgement is made that recovery of the expenditure is not possible, the relevant capitalised amount will be written off to profit or loss. Impairment of mine development expenditure The future recoverability of capitalised mine development expenditure is dependent on a number of factors, including the level of proved and probable reserves and measured, indicated and inferred mineral resources, future technological changes which could impact the cost of mining, future legal changes and changes to commodity prices. To the extent that capitalised mine development expenditure is determined not to be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made. 1.6. New, Revised or Amending Accounting Standards and Interpretations Adopted The Consolidated Entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Consolidated Entity during the financial year. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. 1.7. New Accounting Standards and Interpretations not yet Mandatory or Early Adopted There are no forthcoming standards and amendments that are expected to have a material impact on the group in the current or future reporting periods, or on foreseeable future transactions. 58 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 2. PARENT ENTITY INFORMATION The following information provided relates to the Company, Alara Resources Limited, as at 30 June 2024. 2024 $ 2023 $ Statement of Financial Position Current assets 437,074 956,806 Non-current assets 14,519,762 9,497,133 Total assets 14,956,836 10,453,939 Current liabilities 28,526 27,751 Non-current liabilities 5,469,248 5,627 Total liabilities 5,497,774 33,378 Net assets 9,459,062 10,420,561 Issued capital 68,722,146 68,722,146 Accumulated losses (59,263,084) (58,301,585) Total equity 9,459,062 10,420,561 Profit/(loss) for the year (961,499) (590,591) Total comprehensive income /(loss) for the year (961,499) (590,591) 3. PROFIT/(LOSS) FOR THE YEAR The operating profit before income tax includes the following items of revenue and expense: 2024 $ 2023 $ Revenue Interest 37,520 25,297 Sale of Copper 5,462,901 – Unrealised forex gain/(loss) 74,313 (72,793) 5,574,734 (47,496) ACCOUNTING POLICY NOTE Revenue Recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Consolidated Entity and the revenue can be reliably measured. All revenue is stated net of the amount of goods and services tax (GST) except where the amount of GST incurred is not recoverable from the Australian Tax Office. The following specific recognition criteria must also be met before revenue is recognised: — Interest revenue – Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. — Other revenues – Other revenues are recognised on a receipts basis. Sale of Copper Sales revenue is recognised when control transfers to the customers i.e. control passes and sales revenue is recognised when the product is delivered to the vessel or vehicle at port of loading for transportation of goods to the customers’ destination. Sales of copper concentrate are recorded on a provisional basis as per standard parameters for want of actual specifications and differential sales value are recorded only on receipt of actual. Final prices for copper concentrate are normally determined between 30 and 120 days after delivery to the customer. There are subsequent adjustments made to the initial transaction price for the difference in the LME rate considered during the initial transaction and the quotational price; and for any mismatch in the grade of copper concentrate and other parameters in it. Revenue from the sale of significant by-products, such as gold and silver, is included in the sales revenue. Two shipments of copper-gold concentrate were made by AHRL during the reporting period, in May and June 2024, from which the Company was due AUD 4,813,520 . This amount represented 90% of the provisional price payable for the consignments under the offtake agreement. The remaining part of the final price payable for the shipments is recognised when it has been determined, which occurs after the reporting period. Copper sales are made under an offtake agreement with Trafigura Pte Ltd. Key terms of the offtake agreement are: Term – Eight years and two months from the commencement of copper concentrate production at the Project, which occurred in May 2024 (Term); Deliverable quantity – the full copper and gold concentrate production of the Washi-hi Project for the Term; Pricing – based on the official London Metal Exchange cash settlement quotation for Grade A copper at the time of delivery. 59 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 4. INCOME TAX EXPENSE The major components of tax expense and the reconciliation of the expected tax expense based on the domestic effective tax rate for the reporting period of 25% (prior period: 25%) and the reported tax expense in profit or loss are as follows: 2024 $ 2023 $ Tax expense comprises: (a) Current tax 272,663 206,768 Deferred income tax relating to origination and reversal of temporary differences – Origination and reversal of temporary differences – – Deferred tax expense – temporary differences (28,751) – Deferred tax expense – losses 28,751 – – Utilisation of unused tax losses previously unrecognised (272,663) (206,768) Under/(Over) provision in respect of prior years – – Tax expense – – Deferred tax expense (income), recognised directly in other comprehensive income (b) Accounting profit before tax (2,732,392) (2,732,392) Income tax expense to accounting profit: Tax at the Australian tax rate of 25% (prior period: 25%) (2,571,420) (683,098) Assessable amounts 335,787 579,557 Non-deductable expenses 342,828 68,922 Deferred tax asset losses not brought to account 1,212,296 23,769 Non-assessable income – other – – Non-deductible items Utilisation of unused tax losses previously unrecognised (272,663) (206,768) Deferred Tax Asset Losses not previously brought to account, now brought to account (28,751) 7,565 Deferred tax assets recognised/ (not recognised) Tax rate difference 981,924 217,998 Under Provision in respect of prior years – (7,945) Income tax expenses (benefit) – – (c) Recognised deferred tax balances Deferred tax asset 7,738 13,798 Deferred tax asset (losses) 87,374 79,809 Set-off deferred tax liabilities (95,112) (93,607) – – (d) Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been recognised are attributable to the following: Unrecognised deferred tax asset losses 1,292,096 1,089,449 Unrecognised deferred tax asset losses (capital) 409,991 409,991 Unrecognised deferred tax asset Oman losses 203,627 220,672 1,905,714 1,720,112 60 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements The benefit of the deferred tax assets not recognised will only be obtained if: (i) The Consolidated Entity derives future income that is assessable for Australian income tax purposes and is of a type and an amount sufficient to enable the benefit of them to be realised; (ii) The Consolidated Entity continues to comply with the conditions for deductibility imposed by tax legislation in Australia; and (iii) There are no changes in tax law which will adversely affect the Consolidated Entity in realising the benefit of them. The Consolidated Entity has elected to consolidate for taxation purposes and has entered into a tax sharing and funding agreement in respect of such arrangements. ACCOUNTING POLICY NOTE Tax consolidation legislation The Consolidated Entity implemented the tax consolidation legislation. The head entity, Alara Resources Limited, and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a stand-alone taxpayer in its own right. In addition to its own current and deferred tax amounts, the Company also recognises the current tax liabilities (or assets) and the deferred tax assets (as appropriate) arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group. Assets or liabilities arising under tax funding agreements within the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the Consolidated Entity. Any differences between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from) wholly owned tax consolidated entities. 5. AUDITOR’S REMUNERATION During the year the following fees were paid or payable for services provided by the auditors to the Consolidated Entity, their related practices and non-audit related firms. 2024 $ 2023 $ In.Corp Audit & Assurance Pty Ltd – Auditors of the Consolidated Entity (Audit and review of financial reports) 32,300 29,000 RSM Chartered Accountants – Auditors of Oman-controlled entities (Audit and review of financial reports) 3,317 4,810 35,617 33,810 6. EARNINGS/(LOSS) PER SHARE 2024 $ 2023 $ Basic earnings/(loss) per share cents (0.81) (0.27) Diluted earnings/(loss) per share cents (0.81) (0.27) Profit/(loss) $ used to calculate earnings/(loss) per share (5,792,626) (1,914,019) Weighted average number of ordinary shares during the period used in calculation of basic earnings/(loss) per share 718,087,541 715,810,289 Weighted average number of ordinary shares during the period used in calculation of diluted earnings/(loss) per share 719,962,291 715,015,289 Under AASB 133 “Earnings per share”, potential ordinary shares such as options will only be treated as dilutive when their conversion to ordinary shares would increase loss per share from continuing operations. 4. INCOME TAX EXPENSE (continued) 61 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 7. CASH AND CASH EQUIVALENTS The operating profit before income tax includes the following items of revenue and expense: 2024 $ 2023 $ Cash in hand 5,233 1,991 Cash at bank 4,238,757 3,548,310 Term deposits 111,822 106,444 4,355,812 3,656,745 The effective interest rate on short-term bank deposits in the reporting period was 0.76% (prior period: 0.70%) with an average maturity of 90 days. (a) Risk exposure The Consolidated Entity’s exposure to interest rate and foreign exchange risk is discussed in Note 23. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above. (b) Reconciliation of Net Profit/(Loss) after Tax to Net Cash Flow from Operations 2024 $ 2023 $ Profit/(Loss) after income tax (10,625,095) (2,732,393) Gain/(loss) on Forex (realised) 49,479 80,556 Share of (profits)/losses of associates and joint ventures (203,158) (52,637) Foreign exchange movement (265,898) 173,196 Depreciation 6,431,684 763,824 (Increase)/Decrease in Assets: Trade and other receivables (2,844,336) (7,224) Other current assets (38,466) (19,377) Borrowing cost – 173 Stock in hand (7,212,316) – Increase/(Decrease) in Liabilities: Insurance premium funding (other payables) (11,718) (738) Trade and other payables 2,529,426 225,171 Provisions 189,753 14,925 Net cash flows from/(used in) operating activities (12,000,645) (1,554,524) 62 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 8. TRADE AND OTHER RECEIVABLES 2024 $ 2023 $ Current Amounts receivable from: Sundry debtors 4,199,514 321,200 Goods and services tax recoverable 16,792 7,139 VAT receivable 626,131 596,566 4,842,437 924,905 (a) Risk exposure Information about the Consolidated Entity’s exposure to credit risk, foreign exchange risk and interest rate risk is in Note 22. (b) Impaired receivables None of the above receivables are impaired or past due. ACCOUNTING POLICY NOTE Trade and other receivables are recorded at amounts due less any provision for doubtful debts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when considered non-recoverable. 9. OTHER CURRENT ASSETS 2024 $ 2023 $ Prepayments 140,340 133,845 Accrued interest 1,402 8,595 141,742 142,440 10. FINANCIAL ASSETS 2024 $ 2023 $ Current Bank deposits 329,963 802,710 Non-Current Interest free loan to Alara Resources LLC 435,028 496,376 Loan to Other Entities – ARL 166,035 – Bank deposits (more than one year) 204,979 11,275 1,136,005 1,310,361 63 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 11. INVESTMENT IN ASSOCIATES The movement for the year in the Group’s investments accounted for using the equity method is as follows: 2024 $ 2023 $ Opening balance 151,557 98,920 Profit/(Loss) from equity accounted investments 203,158 52,637 354,715 151,557 ACCOUNTING POLICY NOTE An associate is an entity over which the group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Under the equity method, an investment in an associate is recognized initially in the consolidated statement of financial position at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. When the Group’s share of losses of an associate exceeds the Group’s interest in that associate, the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. 12. BORROWING COST 2024 $ 2023 $ Borrowing cost 862 865 Less: Amortisation for the period (382) (383) 480 482 64 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 13. PROPERTY, PLANT AND EQUIPMENT Plant and Equipment $ Mine Properties $ Development Assets $ Total $ Year ended 30 June 2023 Carrying amount at beginning 138,400 – 25,213,324 25,351,724 Additions 2,785,002 – 72,425,882 75,210,884 Disposal (2,479) – – (2,479) Depreciation expense (763,824) – – (763,824) Exchange difference (5,190) – 978,892 973,703 Closing amount at reporting date 2,151,911 – 98,618,098 100,770,009 Year ended 30 June 2023 Cost or fair value 3,148,475 – 98,618,098 101,766,573 Accumulated depreciation (996,564) – – (996,564) Net carrying amount 2,151,911 – 98,618,098 100,770,009 Year ended 30 June 2024 Carrying amount at beginning 2,151,911 – 98,618,098 100,770,009 Transfer from development 38,011,394 103,107,787 (141,119,181) – Additions 21,934 – 53,386,266 53,408,200 Disposal – – – – Depreciation expense (3,817,053) (2,614,630) – (6,431,683) Exchange difference 55,747 44,484 (434,856) (334,625) Closing amount at reporting date 36,423,933 100,537,641 10,450,327 147,411,901 Year ended 30 June 2024 Cost or fair value 41,168,980 103,107,787 10,450,327 154,727,094 Accumulated depreciation (4,745,047) (2,570,146) – (7,315,193) Net carrying amount 36,423,933 100,537,641 10,450,327 147,411,901 ACCOUNTING POLICY NOTE All plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present value in determining recoverable amount. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Consolidated Entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. The depreciable amount of all fixed assets is depreciated on a diminishing value basis over the asset’s useful life to the Consolidated Entity commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Office Equipment 15 – 37.5% Motor Vehicles 33.3% Plant and Equipment 15 – 33.3% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of profit or loss and other comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. Mine properties and development assets Mine property and development assets include costs and developed assets in accessing the ore body and costs to develop the mine to the production phase, once the technical feasibility and commercial viability of a mining operation has been established. At this stage, exploration and evaluation assets are reclassified to mine properties and developed assets. Mine property and development assets are stated at historical cost less accumulated amortisation and any accumulated impairment losses recognised. The initial cost of an asset comprises its purchase price or construction cost and any costs directly attributable to bringing the asset into operation. Any ongoing costs associated with mining which are considered to benefit mining operations in future periods are capitalised. 65 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 14. EXPLORATION AND EVALUATION 2024 $ 2023 $ Opening balance 4,713,750 5,635,650 Reinstatement of Foreign Reserve balance relating to prior years 9,213 (1,191,744) Exploration and evaluation expenditure – 938 Exchange differences (33,835) 268,906 Closing balance 4,689,128 4,713,750 Alara Oman Operations Pty Limited (a wholly owned Australian subsidiary) gained a 50% shareholding interest in a jointly controlled company, Daris Resources LLC (Oman), on 1 December 2010. The principal activity of this company is exploration, evaluation and development of mineral licences in Oman. The Consolidated Entity has a valid and legally enforceable contractual right to commercially exploit the Daris Project held by Daris Resources LLC (in which the Consolidated Entity has a 50% shareholding interest) and does not hold the legal title to the mineral exploration licence (which is held by the other 50% shareholder of Daris Resources LLC). The financial statements have been prepared on this basis. Should these legal rights not be enforceable, the carrying value of Exploration and Evaluation Expenditure attributable to the Daris Project would be impaired. The Consolidated Group has entered into a Heads of Agreement with Awtad Copper LLC, under which wholly owned subsidiary Alara Oman Operations Pty Ltd would become a 10% shareholder in the Awtad Block 8 Project. As part of the Heads of Agreement, Awtad acknowledges OMR 246,215 (AUD 812,316) previously spent on the project by Alara as the basis for Alara’s interest in that project. ACCOUNTING POLICY NOTE Mineral Exploration and Evaluation Expenditure Exploration, evaluation and development expenditure incurred is accumulated (i.e. capitalised) in respect of each identifiable area of interest. These costs are only carried forward where they are expected to be recovered through the successful development of the area or where activities in the area and includes areas that have not yet reached a stage that permits reasonable assessment of the existence or otherwise of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made. Exploration and evaluation expenditure is written-off when it fails to meet at least one of the conditions outlined above or an area of interest is abandoned. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. When facts and circumstances suggest that the carrying amount exceeds the recoverable amount, the impairment loss will be measured in accordance with the Consolidated Entity’s impairment policy. This policy requires management to make certain estimates to future events and circumstances, in particular whether an economically viable extraction operation can be established. Any such estimates and assumptions may change as new information becomes available. If, after having capitalised the expenditure under the policy, a judgement is made that recovery of the expenditure is not possible, the relevant capitalised amount will be written off to the statement of profit or loss and other comprehensive income. Impairment of Non-Financial Assets At each reporting date, the Consolidated Entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the profit or loss. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. 66 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 15. TRADE AND OTHER PAYABLES 2024 $ 2023 $ Current Trade payables 51,384,719 19,402,062 Other payables 2,412,608 2,164,677 53,797,327 21,566,739 Due to the short-term nature of the trade and other payables, their carrying value is assumed to approximate their fair value. Risk exposure Details of the Consolidated Entity’s exposure to risks arising from current payables are set out in Note 22. ACCOUNTING POLICY NOTE These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. 16. PROVISIONS 2024 $ 2023 $ Current Employee benefits – annual leave 364,199 175,195 364,199 175,195 Amounts not expected to be settled within the next 12 months The entire annual leave obligation is presented as current as the Consolidated Entity does not have an unconditional right to defer settlement. 67 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 17. FINANCIAL LIABILITIES 2024 $ 2023 $ Financial Liabilities Non-Current Loan – Sohar International Bank Opening balance 65,937,034 17,359,449 Add: Addition during the year 5,732,908 48,577,585 Closing balance 71,669,942 65,937,034 Loan – Trafigura PTE Ltd Opening balance – – Add: Addition during the year 5,418,886 – Closing balance 5,418,886 – Loan from Associate – Alara Resources LLC Opening balance 30,047 – Add: Addition during the year 62,107 30,047 Closing balance 92,154 30,047 Loan with unrelated third party Opening balance 820,809 732,568 Add: Addition during the year – – Add: Interest 64,230 60,523 Add/ Less: Foreign exchange differences 3,509 27,718 Closing balance 888,548 820,809 Vehicle Loan Opening balance 29,754 42,314 Add: Addition during the year – – Less: Paid during the Year (14,874) (7,944) Less: Unexpired interest on vehicle loan (623) (2,783) Add/less: Foreign exchange differences (139) (1,833) Closing balance 14,118 29,754 Total Financial Liabilities – Non-Current 78,083,648 66,817,644 Current SIB Loan – STL Opening balance – – Add: Addition during the year 19,067,338 – Closing balance 19,067,338 – Vehicle Loan Opening balance 14,164 12,425 Add: Addition during the year 3,569 5,954 Less: Unexpired Interest on Vehicle Loan (2,149) (3,569) Add/Less: Foreign exchange differences (76) (646) Closing balance 15,508 14,164 Insurance Premium Funding Opening balance 5,627 4,793 Add: Addition during the year 55,915 56,271 Less: Payment during the year (44,398) (55,437) Closing balance 17,144 5,627 Total Financial Liabilities – Current 19,099,990 19,791 68 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 17. FINANCIAL LIABILITIES (continued) (i) On 16 April 2017, Al Hadeetha Resources LLC (AHR) (the joint venture company which conducts the Al Hadeetha Copper-Gold Project (Project), in which the Company is a 51% shareholder) entered into an unsecured loan agreement as borrower with Al Hadeetha Investments LLC (Lender) (an un-related company, which holds the remaining 30% of the shares in AHR). Under the agreement, AHR may draw down a maximum of (AUD 2,997,800; OMR 772,191)to assist with working capital for the Project (AHI to AHR Loan). The AHI to AHR Loan bears interest at LIBOR plus two percent per annum. The Loan will be in effect for the duration of the Project joint venture agreement, at which time AHR must repay any outstanding balance. AHR must make interim repayments equal to its available net cash profit (if any) at the end of each financial year. During the year AHR has not made any drawdowns under the Loan. The total amount drawn down (being the total amount owing by AHR under the Loan to the end of the year (after offsetting corresponding debit balance of OMR 18,095; AUD 70,246) OMR 228,878 (USD 592,788; AUD 888,548). If AHR determines at the end of any quarter or other period that it has a working capital shortfall it may draw down the whole or part of the shortfall, until the entire Loan amount is drawn down. The remaining, un-drawn balance of the Loan is OMR 525,218 (USD 1,360,332 ; AUD 2,039,001) (This is the undrawn balance based on the gross drawdown amount of loan without offsetting the corresponding debit balance of OMR 18,095; AUD 70,246). Although the AHI to AHR Loan is shown as a liability in the consolidated financial statements, loans by entities within the Alara Consolidated Entity to AHR, which is also within that Consolidated Entity (Consolidated Entity AHR Loans) are not shown in the consolidated financial statements. The Consolidated Entity AHR Loans total AUD 19.5 million and are subject to the same loan terms as the AHI to AHR Loan. The Consolidated Entity AHR Loans are repayable on the same basis as the AHI to AHR Loan. Therefore, if AHR makes a loan repayment to AHI, AHR will also be required to make a loan repayment to its lenders within the Alara Consolidated Group on a pro-rata basis. (ii) The Company’s 51% owned joint-venture vehicle Al Hadeetha Resource LLC (AHRL) has a finance facility of OMR 24.8 million (AUD 97.327 million) (Facility) from Sohar International Bank (Sohar) for construction of mining and processing infrastructure at AHRL’s Wash-hi – Majaza copper-gold project. The Facility is secured over AHRL’s mining property and mine development assets and by corporate guarantees by stakeholders of AHRL, including an Alara wholly owned subsidiary. The interest rate for the Facility is 6.5% per annum for amounts drawn in OMR and 5.15% per annum for amounts drawn in USD, reviewable annually. The Facility has a term of 9 years and 9 months, including a moratorium period of 2 years and 9 months in which only interest is payable. After the moratorium, the principal of the Facility is repayable in 28 equal quarterly instalments. Interest is payable monthly throughout the term. There have been no breaches of the covenants or other provisions of the Facility in the reporting period or subsequently to the date of this report. Sohar is a well-known and respected Bank in Oman. The Group’s due diligence in connection with entering the Facility involved reviewing publicly available information regarding Sohar and making enquiries of other AHRL shareholders, which are large Omani conglomerates each with extensive knowledge of the Omani banking industry. (iii) In July 2023 the Company entered a loan agreement with Trafigura Pte Ltd for finance of USD 3.45 million (AUD 5.106 million, at a USD:AUD exchange rate of 1.48 at approximately the time of drawdown) (Trafigura Loan). The interest rate payable under the Trafigura Loan is SOFR +5.15% per annum. The Trafigura Loan has a maturity date of 30 June 2029 and a moratorium on principal payments until 30 September 2025. 179,521,885 options have been issued to Trafigura to secure a USD 3.45m loan, exercisable on default under the loan at 30 day VWAP minus 10%. 69 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 18. ISSUED CAPITAL 2024 Number 2023 Number 2024 $ 2023 $ Fully paid ordinary shares 718,087,541 718,087,541 68,722,146 68,722,146 Number $ 2023 Balance as at 1 July 2022 705,429,239 68,233,860 Share movement during the 2023 financial year 12,658,302 492,306 Share issue costs during the 2023 financial year – (4,020) Balance as at 30 June 2023 718,087,541 68,722,146 Number $ 2024 Balance as at 1 July 2023 718,087,541 68,722,146 Balance as at 30 June 2024 718,087,541 68,722,146 Each fully paid ordinary share carries one vote per share and the right to participate in dividends. Ordinary shares have no par value and the Company does not have a limit on the amount of its capital. Capital risk management The Consolidated Entity’s objective when managing its capital is to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and to maintain a capital structure balancing the interests of all shareholders. The Board will consider capital management initiatives as is appropriate and in the best interests of the Consolidated Entity and shareholders from time to time. The Consolidated Entity’s financial liabilities as at 30 June 2024 are disclosed in Note 17. The Consolidated Entity’s non-cash investments can be realised to meet accounts payable arising in the normal course of business. 19. RESERVES 2024 $ 2023 $ Foreign currency translation reserve 6,467,552 5,661,104 Transactions with minority interests 8,593,852 8,593,852 15,061,404 14,254,956 Foreign currency translation reserve Exchange differences arising on translation of a foreign controlled entity’s financial results and position are taken to the foreign currency translation reserve. The reserve is de-recognised when the investment is disposed of. Options reserve The number of unlisted options outstanding over unissued ordinary shares at the reporting date is as follows: Grant Date Number of Options 2024 $ 2023 $ Employees’ Options Listed options exercisable at $0.03: expiring 31 July 2024 – Atmavireshwar Sthapak 23 Dec 2021 3,333,000 99,990 99,990 3,333,000 99,990 99,990 70 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 20. SHARE-BASED PAYMENTS No shares were issued as a result of the exercise of any options during the year (2023: 4,000,000). 21. SEGMENT INFORMATION The Board has considered the activities/operations and geographical perspective within the operating results and have determined that the Consolidated Entity operates in the resource exploration, evaluation and development sector within geographic segments – Australia, Saudi Arabia and Oman. 2024 Australia $ Oman $ Saudi Arabia $ Total $ Total segment revenues 36,214 5,464,073 – 5,500,287 Total segment loss/(profit) before tax (809,065) (9,815,068) (1,095) (10,625,228) Total segment assets 2,663,704 169,286,250 – 171,949,954 Total segment liabilities (5,936,609) (145,408,555) – (151,345,164) 2023 Australia $ Oman $ Saudi Arabia $ Total $ Total segment revenues 24,546 751 – 25,297 Total segment loss/(profit) before tax (522,407) (2,218,931) 8,945 (2,732,393) Total segment assets 2,884,506 114,775,786 – 117,660,292 Total segment liabilities (445,794) (88,133,575) – (88,579,369) Reconciliation of segment information 2024 $ 2023 $ (i) Total Segment Assets Total Assets as per Statement of Financial Position 171,949,954 117,660,292 (ii) Total Segment Revenues Total Revenue as per Statement of Profit or Loss and Other Comprehensive Income 5,500,421 25,297 (iii) Total Segment profit/(loss) before tax Total Consolidated Entity profit/(loss) before tax (10,625,095) (2,732,393) ACCOUNTING POLICY NOTE Operating Segments The Consolidated Entity has applied AASB 8: Operating Segments which requires that segment information be presented on the same basis as that used for internal reporting purposes. An operating segment is a component of the Consolidated Entity that engages in business activities from which it may earn revenues and incur expenses. An operating segment’s operating results are reviewed regularly by management to make decisions on allocation of resources to the relevant segments and assess performance. Unallocated items comprise mainly share investments, corporate and office expenses. 71 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 22. FINANCIAL RISK MANAGEMENT The Consolidated Entity’s financial instruments mainly consist of deposits with banks, accounts receivable and payable, and investments. The principal activity of the Consolidated Entity is resource exploration, evaluation and development. The main risks arising from the Consolidated Entity’s financial instruments are market (which includes price, interest rate and foreign exchange risks), credit and liquidity risks. Risk management is carried out by the Board of Directors. The Board evaluates, monitors and manages the Consolidated Entity’s financial risk in close co-operation with its operating units. The financial receivables and payables of the Consolidated Entity in the table below are due or payable within 30 days. The financial investments are held for trading and are realised at the discretion of the Board. The Consolidated Entity holds the following financial instruments: 2024 $ 2023 $ Financial assets Cash and cash equivalents 4,355,812 3,656,745 Financial instruments (term deposits) 534,942 813,985 Trade and other receivables 4,842,437 924,905 Financial asset 435,028 496,376 10,168,219 5,892,011 Financial liabilities at amortised cost Trade and other payables (53,797,327) (21,566,739) Financial liabilities (97,183,638) (66,837,435) (150,980,965) (88,404,174) Net Financial Assets (140,812,746) (82,512,163) (a) Market Risk (i) Price risk The Consolidated Entity is exposed to equity securities price risk. This arises from investments held by the Consolidated Entity and classified in the statement of financial position at fair value through profit or loss. The Consolidated Entity is not directly exposed to commodity price risk. The value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the individual instrument or its issuer or factors affecting all instruments in the market. The Consolidated Entity does not manage this risk through entering into derivative contracts, futures, options or swaps. Market risk is minimised through ensuring that investment activities are undertaken in accordance with Board established mandate limits and investment strategies. 72 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 22. FINANCIAL RISK MANAGEMENT (continued) (ii) Interest rate risk Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Consolidated Entity’s exposure to market risk for changes in interest rates relate primarily to investments held in interest bearing instruments and its loan from third parties. The average interest rate applicable to funds held on deposit during the reporting period was 0.76 % (prior period: 0.70%). 2024 $ 2023 $ Cash at bank 4,238,757 3,548,380 Term deposits 111,822 106,444 Term deposits more than 90 days 534,944 813,985 Loan with unrelated third parties – – Current financial liabilities (19,099,990) (19,791) Non-current financial liabilities (78,083,650) (66,817,644) (92,296,165) (62,368,626) The Consolidated Entity has borrowings subject to interest rate risk. The possible impact on profit or loss or total equity on this exposure is displayed below: 2024 $ 2023 $ Financial Liability Change in profit Increase by 1% (971,836) (668,374) Decrease by 1% 971,836 668,374 Change in equity Increase by 1% (971,836) (668,374) Decrease by 1% 971,836 668,374 2024 $ 2023 $ Revenue Change in profit Increase by 3% 163,887 109,702 Decrease by 3% (163,887) (109,702) Change in equity Increase by 3% 163,887 109,702 Decrease by 3% (163,887) (109,702) 73 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 22. FINANCIAL RISK MANAGEMENT (continued) (iii) Foreign exchange risk The Consolidated Entity is exposed to foreign currency risk in cash held in Omani Riyals (OMR) by the Consolidated Entity’s foreign controlled entity, foreign resource project investment commitments and exploration and evaluation expenditure on foreign exploration and evaluation. The primary currency giving rise to this risk is Omani Riyals (OMR). The Consolidated Entity has not entered into any forward exchange contracts as at reporting date and is currently fully exposed to foreign exchange risk. The Consolidated Entity’s exposure to foreign currency risk at reporting date was as follows: 2024 OMR 2023 OMR Cash and cash equivalents 898,725 705,902 Trade and other receivables 3,706,341 1,910,307 Trade and other payables (13,849,944) (5,523,174) Financial liabilities (23,380,408) (17,133,708) (32,625,286) (20,040,673) 2024 US $ 2023 US $ Cash and cash equivalents 9,787 9,589 9,787 9,589 The Consolidated Entity’s exposure to foreign exchange risk is mitigated by having comparable asset and liability balances in OMR and US dollars. Therefore, a sensitivity analysis has not been performed. The Consolidated Entity enters into forward exchange contracts with its Australian bank from time to time to hedge against foreign exchange risk. (b) Credit risk Credit risk refers to the risk that a counterparty under a financial instrument will default (in whole or in part) on its contractual obligations resulting in financial loss to the Consolidated Entity. Concentrations of credit risk are minimised primarily by undertaking appropriate due diligence on potential investments, carrying out all market transactions through approved brokers, settling non-market transactions with the involvement of suitably qualified legal and accounting personnel (both internal and external), and obtaining sufficient collateral or other security (where appropriate) as a means of mitigating the risk of financial loss from defaults. This financial year there was no necessity to obtain collateral. The credit quality of the financial assets are neither past due nor impaired and can be assessed by reference to external credit ratings (if available with Standard & Poor’s) or to historical information about counterparty default rates. The maximum exposure to credit risk at reporting date is the carrying amount of the financial assets as summarised below: 2024 $ 2023 $ Cash and cash equivalents BB- 4,350,580 3,654,824 No external credit rating available 5,233 1,921 4,355,813 3,656,745 Trade and other receivables (due within 30 days) No external credit rating available 4,842,437 924,905 4,842,437 924,905 The Consolidated Entity measures credit risk on a fair value basis. The carrying amount of financial assets recorded in the financial statements, net of any provision for losses, represents the Consolidated Entity’s maximum exposure to credit risk. All receivables noted above are due within 30 days. None of the above receivables are past due. 74 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 22. FINANCIAL RISK MANAGEMENT (continued) (c) Liquidity risk Liquidity risk is the risk that the Consolidated Entity will encounter difficulty in meeting obligations associated with financial liabilities. There is sufficient cash and cash equivalents and the non-cash investments can be realised to meet accounts payable arising in the normal course of business. The financial liabilities maturity obligation is disclosed below: Less than 6 months AUD 6-12 months AUD 1-5 years AUD Total AUD 2024 Financial assets Cash and cash equivalents 4,355,812 – – 4,355,812 Financial instruments (term deposits) 294,635 35,328 204,979 534,942 Interest free loan to Alara Resources LLC – – 435,028 435,028 Trade and other receivables 4,842,437 – – 4,842,437 9,492,884 35,328 640,007 10,168,219 Financial liabilities Trade and other payables (53,797,327) – – (53,797,327) Other financial liabilities (24,712) (19,074,510) (97,151,752) (97,183,636) (53,822,039) (19,074,510) (97,151,752) (150,980,963) Net inflow/(outflow) (44,329,155) (19,039,182) (96,511,745) (140,812,744) Less than 6 months AUD 6-12 months AUD 1-5 years AUD Total AUD 2023 Financial assets Cash and cash equivalents 3,656,745 – – 3,656,745 Financial instruments (term deposits) 767,231 35,479 11,275 813,985 Interest free loan to Alara Resources LLC – – 496,376 496,376 Trade and other receivables 6,914,946 – – 6,914,946 11,338,922 35,479 507,651 11,882,052 Financial liabilities Trade and other payables (21,566,739) – – (21,566,739) Other financial liabilities (12,541) (7,249) (66,817,643) (66,837,433) (21,579,280) (7,249) (66,817,643) (88,404,172) Net inflow/(outflow) (10,240,358) 28,230 (66,309,992) (76,522,120) (d) Fair Value of Financial Assets and Liabilities The carrying amount of financial instruments recorded in the financial statements represents their fair value determined in accordance with the accounting policies disclosed in Note 1. The aggregate fair value and carrying amount of financial assets at reporting date are set out in Notes 7,8 and 10. The financial liabilities at reporting date are set out in Note 15 and 17. (e) Fair value measurements The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The Consolidated Entity’s financial assets and liabilities approximate their fair values. 75 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 23. COMMITMENTS Lease Commitments 2024 $ 2023 $ Non-cancellable operating lease commitments: Within 1 year 26,108 14,073 1-5 years – – After 5 years – – Total 26,108 14,073 The Group leases office space under a non-cancellable operating lease. On renewal, the terms of the lease are renegotiated. The Group does not have an option to purchase the leased asset at the expiry of the lease period. During the year the Group has signed a sub-lease for the office space hence mitigating the outstanding lease commitments remaining on the lease. 24. CONTROLLED ENTITIES Investment in Controlled Entities Controlled Entity Principal Activity Country of Incorporation Date of Incorporation June 2024 June 2023 Alara Resources Limited (AUQ) Parent Exploration Australia 6-Dec-06 100% 100% Alara Peru Operations Pty Ltd (APO) AUQ Inactive Australia 9-Mar-07 100% 100% Alara Saudi Operations Pty Ltd (ASO) AUQ Management Australia 4-Aug-10 100% 100% Saudi Investments Pty Limited (SIV) AUQ Development Australia 14-Feb-11 100% 100% Alara Oman Operations Pty Limited (AOO) AUQ Management Australia 28-Jun-10 100% 100% Alara Kingdom Operations Pty Limited (AKO) AUQ Management Australia 5-Sep-11 100% 100% Alara Saudi Holdings Pty Limited (ASH) AUQ Inactive Australia 5-Jun-13 100% 100% Al Hadeetha Resources LLC AOO Exploration/ Development Oman 6-Feb-07 51% 51% Alara Resource Ghana Limited AUQ Inactive Ghana 8-Dec-09 100% 100% Alara Peru S.A.C APO Inactive Peru 1-Mar-07 100% 100% Alara Operations LLC AOO Administration Oman 1-Feb-20 100% 100% Sita Mining Company LLC ASO Inactive Saudi Arabia 70% 70% Khnaiguiyah Mining Company LLC AKO Inactive Saudi Arabia 50% 50% Alara Saudi Ventures Pty Ltd AUQ Administration Australia 1-Mar-22 100% 100% 25. JOINTLY CONTROLLED ENTITIES & INVESTMENTS IN ASSOCIATES Investment in Controlled Entities Controlled Entity Principal Activity Country of Incorporation Date of Incorporation June 2022 June 2021 Daris Resources LLC AOO Exploration Oman 1-Dec-10 50% 50% Alara Resources LLC AOO Mining Services Oman 2-Oct-10 35% 35% 76 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 26. RELATED PARTY TRANSACTIONS Controlled and jointly controlled entities Details of the interest in controlled entities and jointly controlled entities are set out in Notes 24 and 25. Transactions with other related parties The following transactions occurred with related parties during the year ending 30 June 2024: Nil. Director loan agreements There was no outstanding Directors’ loan during the year. Transactions with key management personnel Key Management of the Consolidated Entity are each Director and Company Executive being a company secretary or senior managers with authority and responsibility for planning, directing and controlling the major activities of the Company or Consolidated entity. Details of key management personnel individual remuneration are disclosed in the remuneration report section of the directors’ report. Key Management Personnel remuneration includes the following expenses: 2024 $ 2023 $ Short term employee benefits: Remuneration including bonuses and allowances 1,060,235 698,044 Total short term employee benefits 1,060,235 698,044 Long term benefits 31,062 34,716 Total other long-term benefits 31,062 34,716 Post-employment benefits: Defined contribution pension plans 2,523 2,523 Total post-employment benefits 2,523 2,523 Total remuneration 1,093,820 735,283 77 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 27. CONTINGENT ASSETS AND LIABILITIES Contingent assets and liabilities exist in relation to certain exploration and evaluation of the Consolidated Entity subject to the continued development and advancement of the same, as described below. (a) Directors’ Deeds – The Company has entered into deeds of indemnity with each of its Directors indemnifying them against liability incurred in discharging their duties as directors/officers of the Consolidated Entity. As at the reporting date, no claims have been made under any such indemnities and accordingly, it is not possible to quantify the potential financial obligation of the Consolidated Entity under these indemnities. (b) Loan to unrelated party (AHI) (Oman) – On 26 October 2017 Al Hadeetha Investments LLC (AHI) gave a bank guarantee of OMR 30,000 to the Omani Ministry of the Environment as security for performance of the environmental obligations of AHRL in connection with the Al Wash-hi Majaza Project mining licence. AHI was required to deposit the amount of the face value of the bank guarantee with its bank as security in the event that the bank guarantee is called upon. Pursuant to an agreement between the Consolidated Entity and AHI, the Consolidated Entity paid OMR 20,000 to AHI on or about that date, representing an approximation of its share of liability to contribute to the costs of remediating any unmet environmental obligations of AHR. This amount will be returned to the Consolidated Entity in the event that AHRL performs its environmental obligations in relation to that mining licence. (c) Alara Oman Operations Pty Limited, a wholly owned subsidiary of Alara Resources Ltd has provided a guarantee to Sohar International SAOG (Sohar) for the full liability of Al Hadeetha Resources LLC (AHRL – Alara, 51%) under a loan of OMR 24.8 million (AUD 97.327 million) from Sohar International to AHRL (Sohar Loan), the proceeds of which AHRL is using to finance construction of the Al Wash-hi Majaza copper-gold project in Oman. (d) Principals (Guarantors) of shareholders in AHRL which hold 30% and 19% of the shares in AHRL respectively have provided personal guarantees to Sohar in respect of the Sohar Loan (Guarantees) which correspond to the guarantee referred to in note (c). Alara Resources Limited has provided an indemnity to the Guarantors in respect of their liability under the Guarantee, limited to 49% of the amounts paid by the Guarantors to Sohar under the Guarantees. 78 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements 28. SUBSEQUENT EVENTS Events occurring after the balance date are set out as below: (a) In September 2024 Alara entered a non-binding heads of terms (HoT) with AIM-listed Power Metal plc for it to explore the Block 8 concession in Oman. The HoT requires the parties to negotiate an agreement the following key terms: Power Metal will manage the Block 8 exploration program for one year. Power Metal will provide all management, planning, execution, interpretation and reporting on exploration activities and will consult with Awtad and Alara during development and implementation of the program. Power Metal will provide funding of up to US$740,000 for exploration activities. It will contribute an initial amount of US$500,000 to cover the period up until the renewal date of the existing licence (due 30 April 2025), with the balance to be contributed following successful renewal. Following the US$500,000 initial expenditure milestone, Power Metal will earn a 10% interest in Block 8 and a further 2.5% interest on expenditure of a further US$240,000. Upon Power Metal completing US$740,000 expenditure on the project, a joint funding program covering future expenditure and specifying Power Metal’s ongoing percentage interest in the project will be negotiated. Awtad Copper is responsible to maintain the licence and must remain the holder of it throughout the period in which the above work is carried out. Power Metal has a first right of refusal to acquire Block 8 if Awtad Copper wishes to dispose of it. Awtad Copper is responsible to seek all required approvals for the exploration program. (b) AHRL made the following shipments of copper-gold concentrate after the end of the reporting period: 18 July 2024 16 August 2024 Copper Concentrate WMT (approx.) 821 WMT 855 WMT Copper Concentrate DMT (approx.) 751 DMT 762.18 DMT Copper (approx.) 119 MT 123.7 MT Gold (approx.) 4.0 Kg 4.0 Kg Al Wash-hi – Majaza Project (“Project”) development The Company continued to develop the Project after the end of the reporting period, as detailed in the section of this report titled “Review of Operations”. 79 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements Basis of preparation The Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001. It includes certain information for each entity that was part of the consolidated entity at the end of the financial year. Determination of tax residency Section 295(3A) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act 1997. The determination of tax residency involves judgment as there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the consolidated entity has applied the following interpretations: (a) Australian tax residency The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner’s public guidance in Tax Ruling TR 2018/5. (b) Foreign tax residency Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in determining tax residency and ensure compliance with applicable foreign tax legislation. Entity Name Entity Type Place formed/ Country of Incorporation Ownership Interest Tax Residency Alara Resources Limited (AUQ) Body corporate Australia 100% Australia Alara Peru Operations Pty Ltd (APO) Body corporate Australia 100% Australia Alara Saudi Operations Pty Ltd (ASO) Body corporate Australia 100% Australia Saudi Investments Pty Limited (SIV) Body corporate Australia 100% Australia Alara Oman Operations Pty Limited (AOO) Body corporate Australia 100% Australia Alara Kingdom Operations Pty Limited (AKO) Body corporate Australia 100% Australia Alara Saudi Holdings Pty Limited (ASH) Body corporate Australia 100% Australia Al Hadeetha Resources LLC Body corporate Oman 51% Australia, Oman Alara Resources Ghana Limited Body corporate Ghana 100% Australia, Ghana Alara Peru S.A.C Body corporate Peru 100% Australia, Peru Alara Operations LLC Body corporate Oman 100% Australia, Oman Sita Mining Company LLC Body corporate Saudi Arabia 70% Australia, Saudi Arabia Khnaiguiyah Mining Company LLC Body corporate Saudi Arabia 50% Australia, Saudi Arabia Alara Saudi Ventures Pty Ltd Body corporate Australia 100% Australia There are no trusts, partnerships or joint ventures within the consolidated entity. Accordingly, none of the above entities was a trustee of a trust within the consolidated entity, a partner in a partnership within the consolidated entity, or a participant in a joint venture within the consolidated entity. Consolidated Entity Disclosure Statement For the year ended 30 June 2024 80 Alara Resources Annual Report 2024 Notes to the Consolidated Financial Statements In the Directors’ opinion: — the Corporations Regulations 2001 and other mandatory professional reporting requirements; — the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 1 to the financial statements; — the attached financial statements and notes give a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of its performance for the financial year ended on that date — there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and — the information disclosed in the attached consolidated entity disclosure statement is true and correct. The directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the directors Atmavireshwar Sthapak Managing Director 30 September 2024 Directors’ Declaration For the year ended 30 June 2024 81 Alara Resources Annual Report 2024 In.Corp Audit & Assurance Pty Ltd ABN 14 129 769 151 Level 1 6-10 O’Connell Street SYDNEY NSW 2000 Suite 11, Level 1 4 Ventnor Avenue WEST PERTH WA 6005 GPO BOX 542 SYDNEY NSW 2001 T +61 2 8999 1199 E team@incorpadvisory.au W incorpadvisory.au To the members of Alara Resources Limited Opinion We have audited the financial report of Alara Resources Limited (“the Company”) and its controlled entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of profit and loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement and the directors’ declaration of the company. In our opinion, the accompanying financial report of the Group, is in accordance with the Corporations Act 2001, including: a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial performance for the year then ended; and b) complying with Australian Accounting Standards and the Corporations Regulations 2001. ALARA RESOURCES LIMITED INDEPENDENT AUDITOR’S REPORT Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under these standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of this report. We are independent of the Group 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 (Including Independence Standards) (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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Liability limited by a scheme approved under Professional Standards Legislation Independent Auditor’s Report to the members of Alara Resources Limited 82 Alara Resources Annual Report 2024 ALARA RESOURCES LIMITED INDEPENDENT AUDITOR’S REPORT (continued) 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 year. 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 - Financial Liabilities How our Audit Addressed the Key Audit Matter The Group has significant financial liabilities as disclosed in Note 17 to the financial statements. This was considered to be a key audit matter due to its importance in financing future activities of the Group and complexities in determining whether financial covenants have been complied with, ensuring that the classification between current and non-current is accurate and in valuing the financial liabilities denominated in foreign currencies. Our procedures over the Group’s financial liabilities included but were not limited to: • Reviewing financing agreements; • Agreeing significant financial liabilities to third- party supporting documentation; • Reviewing management’s assessment of compliance with financial covenants related to the financial liabilities; and • We assessed the appropriateness of the disclosures included in the financial report. Key Audit Matter - Capitalised Mine Properties Asset How our Audit Addressed the Key Audit Matter As disclosed in Note 13 to the financial statements, the Group’s has capitalised mine properties and development assets of $100,537,641. The recognition and recoverability of mine development was considered a key audit matter as: • the carrying value represents a significant asset to the Group; and • significant management judgement is involved in determining whether impairment indicators exist. Our procedures in assessing mine development expenditure included but were not limited to the following: • We reviewed the ownership rights to the tenements, against which the expenditure is capitalised and their expiry dates; • We assessed the reasonableness of capitalising mine development expenditure in accordance with Australian Accounting Standards; • We tested a sample of mine development expenditure items to supporting documentation to ensure they were bona fide payments; • We assessed the reasonableness of the management’s assessment for the existence of impairment indicators; and • We reviewed the appropriateness of the related disclosures included in the financial report. 83 Alara Resources Annual Report 2024 ALARA RESOURCES LIMITED INDEPENDENT AUDITOR’S REPORT (continued) Other Information The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2024, 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: a) the financial report (other than consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001, and for such internal control as the directors determine is necessary to enable the preparation of: ii) the financial report (other than consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and iii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Group’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 Group or to cease operations, or have no realistic alternative but to do so. 84 Alara Resources Annual Report 2024 ALARA RESOURCES LIMITED INDEPENDENT AUDITOR’S REPORT (continued) 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 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. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor’s report. In.Corp Audit & Assurance Pty Ltd Daniel Dalla Director 30 September 2024 Opinion on the Remuneration Report We have audited the remuneration report included in the directors’ report for the year ended 30 June 2024. In our opinion the remuneration report of Alara Resources Limited for the year ended 30 June 2024 complies with section 300A of the Corporations Act 2001. Responsibilities for the Remuneration Report The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 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. 85 Alara Resources Annual Report 2024 Summaries of mineral resources and ore reserves References to mineral resources, ore reserves and exploration results in this report are summaries of the Company’s previous public reports of those matters, as referenced in the particular sections of this Report containing those summaries (Previous Public Reports). Previous Public Reports were prepared in compliance with the edition of the JORC Code applicable at the time, being either the 2012 Edition or, in some cases as referenced in the text, the 2004 Edition. The Company is not aware of any new information or data that materially affects the information about any mineral resource, or reserve or exploration result included in a Previous Public Report, except to the extent that a later Previous Public Report has modified an earlier Previous Public Report. In the case of estimates of mineral resources and ore reserves, the Company confirms that all material assumptions and technical parameters underpinning the estimates in the relevant previous Public Reports continue to apply and have not materially changed. The form and context in which the findings of the relevant competent person (as defined in the JORC Code) on which the Previous Public Reports were based have not been materially modified when repeated in this Report. Mineral resources and ore reserve review The Company has conducted a review of its mineral resources and ore reserves statements effective 30 June 2024. As a result of that review the Company reports no change to its mineral resources and ore reserves as contained in the relevant, latest Previous Public Reports of those resources and reserves. The review confirmed that the Company’s mineral resources and ore reserves are as stated in the various sections of this Report which summarise those matters. Competent person statements The information in this announcement that relates to the feasibility study of the Al Hadeetha copper-gold project is based on information compiled by Mr H. Shanker Madan, who is a Member of the Australasian Institute of Mining and Metallurgy, and consultant to Alara Resources. Mr Madan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking to qualify as a Competent Person as defined in the JORC Code, 2012 edition. Mr Madan consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears. Mr Madan is an independent consultant and was Managing Director of the Company from 2007 until 2013. The information in this announcement that relates to Ore Reserve of the Al Hadeetha Project was compiled by Mr Harry Warries, who is a Fellow of the Australasian Institute of Mining and Metallurgy, and a consultant to Alara Resources. Mr Warries has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ In assessing the appropriateness of the Ore Reserve estimate, Mr Warries has relied on various reports, from both internal and external sources, in either draft or final version, which form part of or contribute to the Al Hadeetha Project Feasibility Study. These reports are understood to be compiled by persons considered by Alara to be competent in the field on which they have reported. Mr Warries is a director of Mining Focus Consultants Pty Ltd and is not and has never been an employee of the Company. Mr Warries consents to the inclusion in the report of the information in the form and context in which it appears. The information in this announcement that relates to JORC Resources of the Daris Copper Gold Project and the Al Hadeetha Copper-Gold Project (Oman) are based on, and fairly represents, information and supporting documentation prepared by Mr Ravi Sharma, who is a Chartered Member of The Australasian Institute of Mining and Metallurgy, Registered Member of The Society for Mining, Metallurgy and Exploration. Mr Sharma was a principal consultant to Alara Resources and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking to qualify as a Competent Person as defined in the JORC Code, 2012 edition. Mr Sharma is Principal of Bedrock Mineral Resource Consulting. He is not and has never been an employee of the Company. Mr Sharma approves and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. JORC Code Information 86 Alara Resources Annual Report 2024 e Issued Securities Quoted on ASX Unlisted Total Fully Paid Ordinary Shares 718,087,541 – – Options (AUQOPT8) – 179,521,885 – Total 718,087,541 179,521,885 897,609,426 Distribution of Fully Paid, Ordinary Shares Spread of Holdings Number of Holders Number of Units % of Issued Captial 1 – 1000 822 264,113 0.04% 1,001 – 5,000 244 572,245 0.08% 5,001 – 10,000 157 1,319,649 0.18% 10,001 – 100,000 557 21,967,805 3.06% 100,001 + 306 693,963,729 96.64% Total 2,086 718,087,541 100.00% Unmarketable Parcels Min. parcel size Holders Units Minimum $500.00 parcel at $0.031 per unit 16,129 1,344 3,756,642 Substantial Holders Holding Holding Balance % IC Al Tasnim Infrastructure LLC 99,650,067 13.88 Mr Vikas Malu 50,000,000 6.96 Al Tasnim Infrastructure LLC 99,650,067 13.88 Top 20 Ordinary Fully Paid Shareholders Rank Shareholder Shares Held % of Issued Captial 1. Al Tasnim Infrastructure LLC 99,650,067 13.88 2. Vikas Malu 64,142,050 8.93 3. Ms Meng Meng 41,844,441 5.83 4. Vikas Jain 37,745,930 5.26 5. Al Hadeetha Investment Services LLC 31,500,000 4.39 6. BNO Paribas Nominees Pty Ltd 25,707,379 3.58 7. Piyush Jain 24,199,437 3.37 8. Citicorp Nominees Pty Ltd 23,198,764 3.23 9. Mr Tyrone James Giese 17,705,960 2.47 10. Mr Mohammed Saleh Alalshaikh 16,875,925 2.35 11. J P Morgan Nominees Australia Pty Limited 15,000,000 2.09 12. Whitechurch Developments Pty Ltd 14,644,134 2.04 13. Progesys International FZC 14,527,028 2.02 14. Ferguson Superannuation Pty Ltd 12,650,000 1.76 15. Mr Farrokh Jimmy Masani 12,142,581 1.69 16. Mr Pradeep Goyal 9,964,433 1.39 17. Anthony Cullen 9,950,851 1.39 18. Mr Steven Spencer Dahlin & Mrs Eli Odny Dahlin 9,497,181 1.32 19. Peter Kelvin Rodwell 9,422,858 1.31 20. Aum Family Super Pty Ltd 8,555,725 1.19 Total 498,924,744 69.48% On-Market Buy Back There is no current on-market buy back in progress. Voting Rights Each fully paid ordinary share entitles the holders to one vote. Options do not have voting rights. Securities Information The shareholder information set out below was applicable at 22 October 2024. 87 Alara Resources Annual Report 2024 Directors Stephen Gethin Non-Executive Chairman Atmavireshwar Sthapak Managing Director Vikas Jain Non-Executive Director Sanjeev Kumar Non-Executive Director Devaki Khimji Non-Executive Director Farrokh J Masani Alternate Director(1) Company Secretary Dinesh Aggarwal Registered Office and Business Address Suite 1.02, 110 Erindale Road Balcatta, Western Australia 6021 Postal: PO Box 963 Balcatta Western Australia 6914 AUSTRALIA Telephone: +61 8 9240 4211 E-mail: info@alararesources.com ASX Code: AUQ Corporate Governance Statement The Company’s Corporate Governance Statement is available on the Company’s website: www.alararesources.com Email alerts Investors wishing to receive email alerts of all Company ASX Announcements can register their interest by clicking “email alerts” at: www.alararesources.com/irm or by emailing info@alararesources.com. Auditors In.Corp Audit & Assurance Pty Ltd (formerly known as Rothsay Audit & Assurance Pty Ltd) Level 1, Lincoln Building 4 Ventnor Avenue West Perth, Western Australia 6005 www.australia.incorp.asia Share Registry Automic Group Level 5, 191 St Georges Terrace, Perth Western Australia 6000 www.automicgroup.com.au Australian Securities Exchange ASX Limited Level 40, Central Park 152-158 St Georges Terrace Perth, Western Australia 6000 Corporate Directory (1) Mr Masani is an alternate director for Devaki Khimji 88 Alara Resources Annual Report 2024 Alara Resources Limited Suite 1.02, 110 Erindale Road Balcatta, Western Australia 6021 T +61 8 9240 4211 E info@alararesources.com www.alararesources.com Alara Resources Annual Report 2024

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