Alicanto Minerals
Annual Report 2021

Plain-text annual report

ABN 90 141 196 545 al ABN 81 149 126 858 Annual Report 2021 2021Annual Report 2 Contents Corporate Directory Chairperson’s Letter to Shareholders Directors’ Report Auditor’s Independence Declaration Financial Statements Directors’ Declaration Independent Auditor’s Report Additional Shareholder Information Schedule of Mineral Tenements 2 3 4 43 44 76 77 82 85 Alicanto Minerals Limited | 1 Corporate Directory Non-Executive Chairperson Raymond Shorrocks Managing Director Peter George Non-Executive Director Didier Murcia AM Company Secretary Michael Naylor Principal and Registered Office Ground Floor, 24 Outram Street WEST PERTH WA 6005 Telephone: (08) 6279 9425 Facsimile: (08) 6500 9989 Share Registry Automic Pty Ltd Level 2/267 St Georges Terrace PERTH WA 6000 Auditors Stantons International Audit and Consulting Pty Ltd Level 2, 1 Walker Avenue WEST PERTH WA 6005 Bankers National Australia Bank 50 St Georges Terrace PERTH WA 6000 Solicitors HWL Ebsworth Lawyers Level 20/240 St Georges Terrace PERTH WA 6000 Stock Exchange Listing Australian Securities Exchange (Home Exchange: Perth, Western Australia) Code: AQI Website Address www.alicantominerals.com.au Alicanto Minerals Limited | 2 Chairperson’s Letter to Shareholders Dear Shareholder It has been another busy year for the Board and Management team at Alicanto Limited with drilling in our two key assets and the disposal of another. We have managed to maintain our drilling campaign despite COVID 19 and all the difficulties it brings. During the reporting period Alicanto sold its assets in Guyana, South America and reposition its Swedish assets. This Company’s purchase of the Oxberg and Naverberg base metals projects in the world-class Bergslagen Mining District of Southern Sweden was further enhanced by the acquisition of the nearby historical silver mine at Sala. The two Falun projects each host known mineralisation, have highly advanced prospects and immediate drilling targets which augers well for our near-term activities. These prospects are all located within a 15km radius of the world class Falun Copper Mine which closed in 1992. Combined these two projects allows for easy access and convenient drilling campaigns. Greater Falun covers 130sqkm of tenements in the Bergslagen region. This region also hosts world-class base and precious metals projects such as the Garpenberg mine operated by Boliden and the Zinkgruvan mine operated by Lundin. Our first holes, drilled earlier this year, returned high grade Bergslagen is widely viewed as a Tier-1 jurisdiction based on its large mineralised systems and pro-mining regime. And while mining in the region can be traced back more than 1,000 years, no concerted exploration campaign has ever been undertaken in the Greater Falun area. We have now completed our initial 4,000m drill campaign and will embark on a larger 20,000m drill campaign on the completion of drilling at Sala. In the meantime, we will continue to rock chip sample and conduct geo chem work. Earlier this year we began our initial drill campaign at our Sala project which is located 100km southeast of the Greater Falun project. After a detailed review of the historical data, Sala appears to have immediate and large exploration potential. In fact, the historic Bronas Mine 300km north of Sala is believed to be part of the same mineralised zone mined high grade silver and Lead. Further historical drilling to our south at the Prince lode returned multiple mineralized drill hits including 15.9m at 157g/t Ag and 4.2% Zn (ASX: 15/2/2021). Even more interestingly, another historical drill with grades of 844g/t Ag and 16,3% Pb (ASX: 15/2/2021) is believed to have intersected the strike extension of Sala some 200m from existing workings. While very promising the Company has much work to do as we undergo our first campaign there, our first drill assays returned excellent grades and again point to an exciting next six months. On behalf of the Board, I would like to thank the team led by Erik Lundstam who was appointed as Alicanto Chief Geologist. Mr Lundstam has been bolstered with the further appointment of Mr Duncan Grieve our Senior Geologist, who has extensive experience, most recently at the Bellevue Gold asset. In addition, Peter George who joined the Board as Managing Director, in August 2020, was previously Resident General Manager at the Mineral Resources Wodgina Project and prior to that, COO at Keras Resources. The team is therefore well credentialled to advance our project and prove up a sizable resource. Finally, I am proud to say that our safety record is intact. It is particularly pleasing to note that even with two projects and all the inherent activity we have had no environmental, health or safety issues. The year ahead is exciting and the team full of enthusiasm and a new approach to both the Falun and Sala projects, we are posed for great success in 2022. We have that enviable combination of two projects with extensive known mineralisation in a world- class geological region and in a Tier-1 mining location. With new techniques and thorough drilling campaigns Alicanto is on the verge of delivering extensive shareholder value. Finally, I would like to thank our loyal shareholders who have supported the Company over the past year and look forward to delivering an exciting and profitable 2022. Yours Faithfully Raymond Shorrocks Non-Executive Chairperson Alicanto Minerals Limited | 3 Directors’ Report The Directors of Alicanto Minerals Limited (“Company” or “Alicanto”) submit herewith the consolidated financial statements of the Company and its controlled entities (“Group”) or (“Consolidated Entity”) for the year ended 30 June 2021 in order to comply with the provisions of the Corporations Act 2001. 1. Directors The following persons were Directors of Alicanto Minerals Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Mr Raymond Shorrocks Non-Executive Chairperson (appointed 7 August 2020) Mr Peter George Mr Didier Murcia Managing Director (appointed 7 August 2020) Non-Executive Director (previously Non-Executive Chairperson 30 May 2012 to 7 August 2020) Non-Executive Director (resigned 7 August 2020) Non-Executive Director (resigned 7 August 2020) Mr H Halliday Mt T Schwertfeger 2. Principal Activities The principal activity of the entity during the financial year was mineral exploration. The Company commenced exploration in Sweden. Other than the above, there were no significant changes in the nature of the entity’s principal activities during the financial year. 3. Operating Results The loss attributable to owners of the entity after providing for income tax amounted to $7,361,110 (2020: $1,631,079). 4. Dividends Paid or Recommended The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to the date of this report. 5. Financial Position The consolidated entity has $4,512,532 in cash and cash equivalents as at 30 June 2021 (2020: $2,431.923). 6. Business Strategies and Prospects for the Forthcoming Year Alicanto Minerals Limited will continue to explore its significant tenement holding in Sweden. An extensive drilling campaign has commenced aiming at establishing a maiden JORC compliant Resource early next year at its Sala silver-lead-zinc project in Sweden. Alicanto is also expected to complete on the divestment of its Guyana assets. Material business risks that may impact the results of future operations include further exploration results, future commodity prices, failure to complete on the sale of its Guyana assets and funding. 7. Significant Changes in the State of Affairs The following significant changes in the state of affairs of the entity occurred during the financial year: On 14 August 2020, a placement to sophisticated investors was completed raising $1,425,000, before issue costs through the issue of 25,909,090 shares at an offer price of $0.055 and 37,000,000 unlisted options with an exercise price of $0.10 issued for services provided by management, consultants, advisors and incoming directors expiring on 13 August 2025 pursuant to ASX Listing Rule 7.1 and 7.1A, with the following exercise prices: On 18 August 2020, 1,500,000 unlisted options were exercised with an exercise price of $0.001. On 30 November 2020, a placement to sophisticated investors was completed raising $6,000,000, before issue costs through the issue of 46,153,847 shares at an offer price of $0.130 pursuant to ASX Listing Rule 7.1 and 7.1A. On 4 November 2020, 5,500,000 performance rights were issued to management and consultants as an incentive and with performance hurdles aligned with their capabilities that were approved by shareholders at the General Meeting held on 4 November 2020. Alicanto Minerals Limited | 4 Directors’ Report 7. Significant Changes in the State of Affairs (continued) On 24 November 2020, a total of 19,000,000 unlisted options issued for services provided by directors and advisors that were approved by shareholders at the General Meeting held on 4 November 2020 were issued, as follows: • • • • • 9,000,000 with an exercise price of $0.10 2,500,000 with an exercise price of $0.10 2,500,000 with an exercise price of $0.15 2,500,000 with an exercise price of $0.20 2,500,000 with an exercise price of $0.25 On 22 April 2021, 750,000 unlisted options were exercised with an exercise price of $0.001. On 27 April 2021 200,000 performance shares were issued at a deemed issue price of $0.1000. 8. Post Balance Date Events On 2 August 2021, 10,000,000 unlisted Options were issued to Mr Stephen Parsons (or his nominee) who is a corporate consultant with an exercise price of $0.20 and expiry date of 26 July 2026. On 2 August 2021, 4,500,000 performance rights were issued as an incentive component of remuneration and to align interests with those of Shareholders, issued for no consideration and an expiry date of 2 August 2024. On 10 August 2021, 1,000,000 performance rights were converted to fully paid ordinary shares on meeting the performance hurdles and having been approved for issue by the Board. There were no further events occurring after 30 June 2021. 9. Review of Operations Introduction Alicanto Minerals Limited is an emerging mineral exploration company focused on creating shareholder wealth through exploration and discovery in world class mining districts of Scandinavia. In addition, the Company holds a portfolio of gold projects in Guyana, South America, including the Arakaka Project. Financial Performance and Position The net operating loss after tax for the year ended 30 June 2021 was $7,361,110 (2020: $1,631,079). The loss for the period includes $3,247,522 (2020: $848,117) in exploration and evaluation expenditure and share based payment expenses of $2,733,272 of which $1,708,997 is included in consultancy expenses (2020: $8,517). As at 30 June 2021 the Company had cash of $4,512,532 (2020: $2,431,923). Exploration Properties The Greater Falun and the Sala Projects are located in the Bergslagen region in Sweden, which hosts world-class base and precious metals operating projects such as the Garpenberg mine owned by Boliden and the Zinkgruvan mine owned by Lundin. Alicanto Minerals Limited | 5 Directors’ Report 9. Review of Operations (continued) Figure 1: Location of Projects in Sweden The Greater Falun Project and the Sala Project are situated 100km apart and connected by a major highway and railway connecting them to each other and to a port at the town of Gavle which is located 90km to the East of Falun. The now-closed Falun Copper-Gold mine in Bergslagen has a long-established mining history dating back over the best part of 1,000 years, producing 28 million tonnes of high-grade ore at 4% copper, 5% zinc, 4 g/t gold, 35 g/t silver and 2.1% lead. (ASX: 01/05/20191). Sala Silver mine, which is also closed, is 100km to the South-East of Falun and was mined from the 15th Century through to 1908. Some additional mining occurred between 1945-1962 in the neighbouring Bronas Mine. Alicanto Minerals Limited | 6 Directors’ Report 9. Review of Operations (continued) Figure 2: Overview map showing location of major polymetallic skarn deposits surrounding the Sala Silver-Lead-Zinc Project including Garpenberg and Falun. AQI tenements shown in green. Alicanto is currently undertaking field work and an extended 20,000m drilling program within the Greater Falun and the Sala Silver Projects having completed 4,000m in the Greater Falun Project by May 2021. Bergslagen is widely viewed as a Tier-1 jurisdiction based on its large mineralised systems, highly developed infrastructure and pro- mining regime. Alicanto Minerals Limited | 7 Directors’ Report 9. Review of Operations (continued) Technical Detail – Sala Project First assay results for maiden diamond drill hole (SAL21-01) received in August 2021. Results have confirmed two significant high- grade zones that represent the down dip continuation of historic intercepts. Significant intercepts from the maiden AQI drillhole include (ASX: 03/08/2021) 2: • 3.8m @ 7.7% Zn and 9g/t Ag from 572.75m • 6.8m @ 123 g/t Ag, 2.3% Pb and 1.4% Zn from 589.75m (Including 0.95m @ 348 g/t Ag, 5.9% Pb & 4.06% Zn) from 592.58m The reported drill results represent a step out of 140m down dip on the area known as the Prince Lode which has had a total of 12 diamond holes published previously drilled during the 1980’s and 2008. The historical results have never been followed up and Alicanto is targeting the down dip and along strike extensions of this zone (Figure 3,4). The recent step out has extended known mineralisation to an area of 400m by 500m by 200m which remain completely open. Historic results from the Prince target include (ASX: 03/08/21)2: • 7.1m @ 81 g/t Ag, 10.4% Zn & 0.6% Pb • 5.5m @ 69 g/t Ag, 7.4% Zn & 0.8% Pb • 11.9m @ 15 g/t Ag, 8.1% Zn & 0.1% Pb • 9.85m @203 g/t Ag, 6.4% Zn 0.8% Pb • 0.8m @ 1,034 g/t Ag, 1.5% Zn, 2.4% Pb The two zones reported in SAL21-01 differ in style and sulphide mineralogy, representing a zinc rich lode and a silver-lead rich lode, which has been confirmed in the assays (refer Figure 6). The first zone from 572.75m-576.55m, characterised by semi-massive sphalerite veining, returned 7.7% Zinc and 9g/t Ag over 3.8m. The lower zone from 589.75 to 596.52m returned 123g/t Ag, 1.4% Zn and 2.3% Pb over 6.8m, is characterised by a silver-lead dominant sulphide mineralisation (ASX: 03/08/211). A third drillhole, SAL21-03, targeting the Prince lodes has also been completed intersecting multiple mineralised zones. Locally semi-massive sphalerite-galena mineralization was intersected over 4.85m from 489.58m to 494.43m, followed by another zone of veins and patches of sphalerite-dominant mineralization over 1.95m from 497.2m to 499.15m. Assays are pending for holes SAL21-02 (ASX: 07/07/2021)3 and hole SAL2103. Diamond drilling is continuing on site with two dedicated diamond rigs operating on double shift targeting the Sala mineralisation. The Historic Bergslagen Mining District - host to a number of world class polymetallic skarns and VMS The distinct differences in sulphide assemblage intersected in SAL21-01, being a Zinc rich and Silver/Lead rich end member is in line with the historically described types of mineralisation at the adjacent Sala mine. Sala, once Europe's largest silver producer, produced more than 200Moz of silver at an estimated average grade of 1,244 g/t and grades reported as high as 7,000 g/t. Sala also produced over 35,000t of lead at 1 to 2% as well as mined zinc at an average grade of 12% (ASX: 03/08/20211). A small drill program undertaken in 2012 demonstrated that the Sala mineralisation continues to plunge to the north from the historic mine area, with grades as high as 1.65m @ 463 g/t Ag, 0.9% Zn & 8% Pb. The historic Sala deposit remains open to the north and down-dip (ASX: 03/08/20211). The Sala system is a polymetallic skarn hosted in dolomitic marble and occurs dominantly as silver-bearing galena and to a lesser extent as complex antimonides, sulphosalts and native silver. The silver content of the galena was between 0.2% to 1.0%, the latter being one of the highest contents of silver in galena ever reported (ASX: 03/08/2021). The Sala Project is located 50km from Boliden’s operating Garpenberg Mine. Garpenberg has produced over 40Mt of ore and has a current resource of 151.5Mt @ 2.75% Zn, 1.3% Pb and 86.6 g/t Ag (ASX: 06/09/20211). Garpenberg mine which is currently being mined to a depth of 1250m below surface and has been operating continuously for over 64 years. Sala and Garpenberg are both limestone-skarn hosted replacement type deposits with several different style lenses along one major limestone unit. The Sala system is completely untested below 500m and open in all directions. The company believes the polymetallic skarn system at Sala as highlighted by the high-grade intercepts directly next to the Sala Mine combined with the lack of previous drilling presents a significant opportunity to target continuations of known mineralisation and to grow the mineralised footprint of a significant historic producing mine. Alicanto Minerals Limited | 8 Directors’ Report 9. Review of Operations (continued) Figure 3: Plan view geology map over the Sala Silver-Zinc-Lead Project (ASX: 03/08/2021). The Sala Lode (shown in blue) historically produced over 200Moz of Silver from an underground mining operation. The Prince Lode (shown in red) is the target of the current drilling program and has not been previously exploited. Limited drilling has been completed at the project to date. Alicanto Minerals Limited | 9 Directors’ Report 9. Review of Operations (continued) Figure 4: Cross section through the Prince Lode, looking towards the NE. Intercepts from historic drilling illustrated alongside recent Alicanto intercepts down dip of the known mineralisation. Results from drilling are consistent with interpretation of multiple lenses within a 200m wide mineralised corridor (ASX: 03/08/20211). Figure 5: Long Section through the Prince Lode, looking towards the east. Image shows the Prince Lode in red with historic drill intersections and recent Alicanto intersections with the Sala Mine in the background illustrated in blue. Mineralisation at Prince is open in all directions (ASX: 03/08/20211). Alicanto Minerals Limited | 10 Directors’ Report 9. Review of Operations (continued) Figure 6: Cut core from SAL21-01 with composite intervals of the here reported 3.8m @ 7.7% Zn, 9g/t Ag, from 572.75m – 576.55m and 6.8m @ 123g/t Ag, 2.3% Pb, 1.4% Zn, from 589.75m- 596.52m (ASX: 03/08/20211). Technical Detail – Greater Falun Project Exploration Skarn Model A simplified model as a guidance for navigating the mineralized systems at the Greater Falun and Sala projects is shown in Figure 7 below. The typical distance between the causative intrusion to distal Zn-Pb-Ag dominated skarn mineralisation can be in the range of hundreds of meters to several kilometres with the sulphide precipitation mechanism changing from a heat-gradient to a chemical- trap as fluids migrate from a proximal intrusion to a distal environment. Alicanto Minerals Limited | 11 Directors’ Report 9. Review of Operations (continued) A “tight” system will demonstrate more of a high-grade polymetallic signature (Cu-Au-Ag-Zn-Pb) in one place, whereas a protracted system will be dominated by a larger Cu-Au versus Zn-Pb-Ag separation. The “tightness” of the system is often driven by the closeness of the Causative Intrusion and the Limestone (Chemical trap). Figure 7: The Skarn Model Application of the Skarn Model and recently discovered folding of the stratigraphic sequence driving exploration in the Greater Falun Project Commonly in Bergslagen, limestone-skarn hosted (distal) massive sulphide deposits show a strong asymmetry in footwall versus hanging wall alteration of the volcanic stratigraphy. This implies a mineralising event prior to strong deformation and inversion of the stratigraphy. Alteration patterns occur on two main levels, skarn zonation’s and footwall alteration of the volcanic package. Both can be used to navigate from distal to a proximal setting (refer Figure 8). Alicanto Minerals Limited | 12 Directors’ Report 9. Review of Operations (continued) Figure 8: Zonation model for skarn systems Practically, skarn zonation’s involve abundance of garnet-pyroxene-wollastonite and dolomitisation and their colour scheme. Massive garnet>>pyroxene indicating proximal to heat source, pyroxene>>garnet more medial, and pyroxene-wollastonite front at dolomite or carbonate boundary. Alteration within volcanic footwall usually incorporates intensity of mica and silica alteration, abundance of base metals, depletion or addition of sodium, potassium, magnesium etc. Distinguishing the metamorphic overprint over a chemistry that was already in the rock versus true pro- and retrograde skarn alteration can be challenging. Zonation’s of alteration occur on small scale as well as large scale. As distal massive sulphide deposits are likely to be stratabound (within a chemical trap such as limestone), careful mapping of the stratigraphic sequence is essential in order to navigate towards potential mineralisation. Where hanging wall stratigraphy is present at the current surface, the mineralised stratigraphy is expected to be preserved at depth. Subsequent structural overprint includes compaction and following deformation event(s). The volcanic rocks of Bergslagen have filled up an opening rift where subsidence has been matched by volcanic activity until this activity ceases, and deeper water sedimentation had taken over. First main deformation included inversion of the rift growth fault. Evidence recently discovered during fieldwork and drilling has uncovered later folding events. Presently the stratigraphic sequence is thus undulating around in synclines (troughs) and anticlines (ridges) in a complex way. Massive sulphides in a structural environment such as in the Greater Falun Project can be moved or squeezed around, much like toothpaste in a tube (refer Figure 9). Structural deformation can locally create “bonanza” style plastic enhancement or similarly remove/reduce sulphides (from the limbs of folds). Figure 9: Example of simple inversion-like folding and plastic enhancement in hinge zone Alicanto Minerals Limited | 13 Directors’ Report 9. Review of Operations (continued) Careful assessment of drill intersections needs to be undertaken when orientating around in this structurally complex regime, distinguishing between limb and hinge intersections and any intersection of sulphides within this contextual setting, should be investigated with great interest. Geophysical and geochemical patterns are assessed contextually to the framework above. For a detailed visual representation of the formation of the geology, structures and folding events within the Greater Falun Project over the last two billion years, please follow the link (https://www.alicantominerals.com.au/) to the animation “Two Billion Years in the Making – Greater Falun Project”. The Historic Falun Deposit – An example of a folded & tight Polymetallic high-grade (Cu-Au-Ag-Zn-Pb) Skarn System Recent work by Alicanto is leading the company geologists to believe that Falun is a good example of a “tight” skarn system with a strong polymetallic character. This could explain the deposits Cu-Au rich nature with massive limestone and skarn being preserved in the southern parts of the deposit. Whilst no causative intrusion has yet been identified at surface in the near vicinities of the Falun deposit, a possible clue exists one kilometre West of the deposit where a small copper-galena mineralized granitoid outcrops. Examining historical mining plans from the Falun Mine reveals a structural thickening of sulphides into a major hinge zone, with remobilisation/squeezing occurring along the limbs like “toothpaste” within a tube (refer Figure 10 and 10a). The deposit shows a strongly asymmetric footwall versus hanging wall alteration. Strongly altered outcrops, with or without copper mineralization, can be found up to 750 meters away from the deposit. The alteration footprint at surface is roughly 25 times larger than the actual deposit. While the structurally thickened ore body is steeply plunging at Falun (refer Figure 11), current fieldwork is focusing on understanding if more gently plunging structures can be expected (and targeted) as well, within the Greater Falun area (refer Figure 12). To the Southwest of Falun, thick packages of unaltered pyroclastic hanging wall mass-flows can be studied. Figure 10a: Simplified inversion-like folding model Figure 10: Simplified Alteration footprint map over Falun showing folding and structural thickening at surface. Alicanto Minerals Limited | 14 Directors’ Report 9. Review of Operations (continued) Greater Falun Project (AQI: 100%) The Greater Falun Project is located in the Bergslagen region, which hosts world-class base and precious metals projects such as the Garpenberg mine operated by Boliden and the Zinkgruvan mine operated by Lundin. The now-closed Falun mine in Bergslagen has a long-established mining history dating back over the best part of 1,000 years, producing 28 million tonnes of high-grade copper-gold-zinc-silver-lead ore in modern times. No concerted exploration campaign has ever been undertaken in the Greater Falun area. Exploration up to this time reflected the belief that Falun hosted a Volcanogenic Massive Sulphide (VMS) system. However, upon acquiring the Greater Falun area in early 2020, Alicanto instigated an extensive review which has concluded that the dominant mineralisation is instead copper-gold and polymetallic (silver-lead-zinc) skarn. Figure 11: Iso view of selected levels of Falun Mine Alicanto Minerals Limited | 15 Directors’ Report 9. Review of Operations (continued) Figure 12: Example of possible structural blind Target based upon current interpretation in Falun area Figure 13: Location of targets and Magnetic Signatures within the Greater Falun Project area (ASX: 15/09/2020) Alicanto Minerals Limited | 16 Directors’ Report 9. Review of Operations (continued) The Swamp Thing and Wolf Mountain Targets A key development recently understood in the Wolf Mountain area is the relationship between the outlined extensive alteration system at Wolf Mountain and the recently discovered intrusion-proximal copper-gold skarn at The Swamp Thing. The developing model is that the scale of the combined system is of a magnitude larger than what has previously been considered when looking at Swamp Thing or Wolf Mountain in their own right (refer Figure 14). Figure 14: Combined Swamp Thing and Wolf Mountain map The Swamp Thing Four drill holes have been completed at The Swamp Thing (Enmyregruvan), ST20-01 to ST21-04. ST20-01 intersected a mineralized zone with copper-gold skarn in the contact between limestone and an intruding apophyse of a feldspar porphyry, showing what the potential target mineralisation could look like within this environment. Assay results from 58.30-58.62m returned 3.25% Cu, 1.36 g/t Au, 31 g/t Ag and elevated Bi at 55 ppm (refer Photo 1) (ASX: 20/04/2021)5. Photo 1: Drill core ST20-01 from 58.30m with visual sulphides of Chalcopyrite (visuals reported ASX:27/01/2021) (ASX: 20/04/2021) Alicanto Minerals Limited | 17 Directors’ Report 9. Review of Operations (continued) A second hole, ST20-02, targeted the potential limestone contact zone to a larger body of a feldspar porphyry outlined at surface with an old showing Northeast of ST20-01. From 3.20-45.40m a sequence of felsic volcaniclastics intruded by numerous granite apophyses was intersected, with a sharp contact to a feldspar porphyry at 45.40m. The hole ended in the feldspar porphyry at 121.80m without intersecting significant sulphides. Subsequent lithogeochemical analysis has revealed that the feldspar porphyry intersected in the deeper parts of ST20-02 represents a different rock than the Cu-Au skarn causing feldspar porphyry intersected in ST20-01 (ASX: 20/04/20211). ST21-03 was drilled semi-parallel to number 01 hole to the South expecting intersecting the limestone stratigraphy. The hole intersected an altered granite with disseminated pyrite and traces of chalcopyrite and molybdenite locally. ST21-04 (refer Figure 15) finally intersected the contact zone between the granite in the south and the limestone succession to the north. The hole collared in altered granite and then intersected massive skarn between 48.50-104.20m down hole, with numerous altered granite apophyses. Magnetite-rich Fe-skarn dominates the core but with local pyrite-chalcopyrite bearing Mg-skarn zones (56.51-56.81m returned 1.16% Cu, 76.75-77.28m returned 1.06% Cu & 95.45-96.03m returned 0.41% Cu). Altered granite at 104.20-144.60m is followed by a gabbro down to 160.56m. Lithogeochemical analysis has revealed that the latter is very similar to the porphyry intersected in ST20-02, however clearly different to the more granodioritic, feldspar-porphyritic rock related to Cu- Au-Ag mineralization in hole ST20-01. A massive skarn zone at 160.56-175.80 has remnants of limestone, and disseminated magnetite, iron sulphides and chalcopyrite. Assays from 166.82-175.33m (0.30% Cu, 0.19 g/t Au, 3.6 g/t Ag) included a zone between 174.11-174.51m with 3.76% Cu, 2.36 g/t Au and 37 g/t Ag (refer Photo 2). A fresh diabase dike between 175.80-191.15m cuts off the skarn zone. The hole ends in an altered granite at 195.20m down hole (ASX: 20/04/20211). The Swamp Thing project constitutes the best example encountered so far of intrusion-proximal limestone-skarn hosted setting of a copper-gold skarn within the Greater Falun Project. Further work is being planned. Photo 2: Drill core ST21-04 from 174.4m with visual sulphides of Chalcopyrite and Bornite (ASX: 20/04/2021) Alicanto Minerals Limited | 18 Directors’ Report 9. Review of Operations (continued) Figure 15: Profile of drill core ST21-04 (ASX: 20/04/2021) Wolf Mountain Distal Copper-gold skarn mineralization was drilled at the Wolf Mt prospect during early 2020 based upon a high IP, Low resistivity anomaly discovered in late 2019. Following the discovery of numerous IP anomalies in an expanded IP study in mid-2020, similar alteration styles have been intersected in recent drilling targeting IP anomalies to the West and South of Wolf Mt. The intersected IP anomalies, together with the previously drilled Wolf Mt copper prospect, are interpreted to be caused by the distal parts of a large hydrothermal alteration system at play. At the IPC anomaly, drillhole VB20-07 intersecting intense biotite-amphibole-garnet alteration assayed 0.21 g/t Au from 23.80- 24.83m, indicating the fluid’s pathway. The alteration style has now been traced from Wolf Mt in north to IPD in South, a distance over two km’s, with the historic record of copper and gold at Rullputt4 another two kilometres to the Southwest (ASX: 20/04/20211). Volcanic stratigraphy in the area is dominated by thick sequences of resedimented silt and sandstones interrupted by minor juvenile pyroclastic mass-flow deposits. This is similar to the nature of the deeper footwall at the limestone-hosted high-grade Cu-Au-Zn- Pb-Ag Lustebo deposit in the Northeast. The sub basin-like nature of the reworked ash-silt-sandstone volcanic strata in the Wolf Mt area could thus constitute the equivalent unit to the footwall of the Lustebo deposit. Given the distance between Wolf Mt and Lustebo being eight kilometres, it is most likely different causative intrusions to the two systems, which albeit could come from the same suite. Lustebo, similarly to Falun, shows a strongly polymetallic character indicating a “tight” system). Heden Target The drilling campaign at Heden was designed to explore a more than three-kilometre-long trend of limestone strata (up to 200m wide sequence at surface) with zoned garnet-pyroxene skarn alteration and associated chalcopyrite (refer Figure 16). Historical rock chip results of up to 3.1% Cu taken from historical workings at Heden East in pyroxene dominated skarn (see ASX release dated 15/06/20206) and 1.4% Cu from Heden Central within massive garnet skarn (see ASX release dated 15/06/20206) was interpreted to represent a larger skarn alteration zonation within a continuous limestone sequence (ASX: 20/04/20215). At Heden East, copper has been mined near surface at the historic Efriksgårds mine. The alteration is dominated by pyroxene with minor garnet and retrograde amphibole-biotite with disseminated to strongly impregnated chalcopyrite-pyrrhotite mineralisation. At Heden Central, limestone was mined in several small quarries where garnet skarn with impregnation of chalcopyrite can be seen in the waste dumps. Reoccurring limestone has been mapped across a 200m section at surface. Alicanto Minerals Limited | 19 Directors’ Report 9. Review of Operations (continued) Several large, massive garnet-pyroxene boulders have been found in between Heden Central and East, thought to represent locally transported boulders from the same stratigraphy. To the north the limestone is overlain by a thick package of quartz-feldspar crystal-rich rhyolite interpreted to possibly represent the equivalent pyroclastic sequence to what that can be found in the hanging wall to Falun deposit. To the south biotite-amphibolite altered footwall volcaniclastic rocks have been mapped, as well as a potentially causative k-feldspar and epidote altered intrusion with endoskarn of magnetite and iron-pyroxene. Northeast of the intrusion a small showing, Upper Heden, has semi-massive magnetite-pyrrhotite with traces of chalcopyrite. Gravity data provided by SGU (Swedish Geological Survey) has been reprocessed by SGC (Southern Geophysical Consultants) and show a residual gravity anomaly coinciding with mapped garnet-skarn alteration at Heden East to Central. Airborne Magnetic data shows anomalies coinciding with interpreted strike of the target limestone sequence. While drilling at Heden, two ground EM loops where surveyed. No major anomaly was detected, although a weak conductor at Heden East was later intersected. Figure 16: Heden plan map with drill holes 1 through to 5 HED20-01 targeting the depth extension of Efrikgårds copper mine collared in moderate mica altered felsic volcanites. At 39.30- 40.30m pyrrhotite veins causes a weak EM anomaly seen with the ground survey. Light green pyroxene skarn at 67.00-72.46m is interpreted to constitute the depth continuation of the historic mine. Assay results from 71.44-72.46m returned 3.04% Cu, 0.1 g/t Au and 37 g/t Ag and had strongly elevated Bi (240 ppm) (refer Photo 3) (ASX: 20/04/20211). Photo 3: Drill core HED20-01 from 71.44m with visual sulphides of Chalcopyrite (visuals reported ASX:10/1/2020) (ASX: 20/04/2021) Alicanto Minerals Limited | 20 Directors’ Report 9. Review of Operations (continued) HED20-02 drilled underneath the main limestone quarry at Heden Central. The hole collared in moderately biotite-silica altered felsic volcanites with a pegmatite between 5.60-22.50m. A thin skarn altered limestone unit at 67.00-69.75m was followed by fresh, quartz-phyric rhyolites interpreted to constitute the stratigraphic hanging wall pyroclastics. The hole was stopped at 119.4 meters. No major sulphide bearing zone was intersected (ASX: 20/04/20215). HED20-03 drilled in the same profile to the South of the HED20-02 hole, collared in similar biotite-silica altered felsic volcanites. A gabbro occurs at 15.95-25.85m followed by massive garnet-pyroxene skarn to 34.70m. Marble at 80.65-81.90m and 115.45- 120.20m is followed by the hanging wall quartz-phyric unit. The hole was stopped at 176.75 meters. No major sulphide bearing zone was intersected (ASX: 20/04/20211). HED20-04 was drilled in between the profile at Heden Central and Heden East (roughly 1.0 kilometre apart), targeting a magnetic anomaly. The drillhole intersected strongly altered felsic volcanites with intense pyroxene altered limestone at 95.40-101.40 and 163.00-167.50 separated by a diffuse textured, altered granite. The hole was stopped at 182.00 meters. No major sulphide bearing zone was intersected (ASX: 20/04/20211). HED20-05 was drilled in between 04 and 01 hole. The hole intersected moderate to intense altered felsic volcanics. No limestone unit or major sulphide bearing zone was intersected. The hole was stopped at 102.50m. The Heden area is interpreted to constitute of a semi-regional to regional limestone unit with intense and extensive footwall alteration and covered by a quartz-phyric pyroclastic rhyolite sequence. The central Heden is dominated by Fe-skarn while the East Heden shows pale green Mg-skarn associated with Cu-Ag-(Au-Bi) mineralization. Early mapping at the Central zone indicated a up to 200m thick limestone unit but drilling has revealed it is a couple of meters thick only, with folding repetition. The fold hinge dips 20 degrees (only) towards East, creating elongated rod like shapes of the limestone in hinges, easily missed with drilling (as was the case with the major limestone pit targeted by HED20-02 hole). Green Mile to Falun Targets Detailed outcrop mapping together with recent diamond drilling has shown that the targets spread out over 15 km from Falun through to the Green Mile (Zn-Pb-Cu-Au-Ag) are hosted by the same stratigraphic sequence constituting a regional limestone unit overlain by an extrusive basalt partly showing fire fountain textures. Mineralisation sits in the proximal footwall of the limestone, within the limestone itself and within the basalt unit. The basalt unit is of a unique high chromium, primitive type, easily distinguishable with lithogeochemistry analysis from the numerous amphibolite and gabbro intrusions occurring in the area. Strong footwall alteration can be seen in places as far as 10 kilometres West of Falun (refer Figure 17 & Figure 18). This is strongly indicative of at least several proximal hydrothermal centres along strike within the Falun volcanic inlier. Footwall as well as hanging wall to the formation constitutes of felsic juvenile pyroclastics and reworked ash-silt-sandstones, which historically have hindered interpretability of the region. Numerous high level volcanic intrusions have been mapped out at surface, interpreted to represent deeper footwall. A semi-regional rhyolite lava is yet to be allocated to the appropriate stratigraphic position. Later gabbro’s and granites intrude into the volcanic sequence. The volcanic rocks are metamorphosed into amphibolite facies, but mostly still show distinguishable primary volcanic textures. Inversion of synvolcanic faults and folding has locally created repetition of the stratigraphy. Alicanto Minerals Limited | 21 Directors’ Report 9. Review of Operations (continued) Figure 17: Falun geology (working map in progress) (ASX: 20/04/2021) Figure 18: 3D Interpretation at depth of Green Mile project viewing West, based upon currently available information and assumptions. Existing mining tenure in red (Grönbo *Historical Boliden Application for Mining Licence, most recent estimate, based on 1998 diamond drilling by Boliden, not JORC 2012 compliant, not within AQI tenure or material to AQI, estimate reported 21/12/1998) (ASX: 20/04/2021). Drillhole GRO20-04 was a step out from the copper intersection in GRO20-02, towards the historic Gronbo deposit 500 meters to the West. The hole started in stratigraphic hanging wall pumiceous rhyolite between 3.90-34.20m, followed by a strong alteration zone down to 101.65m. The basalt formation was intersected between 101.65-110.55m followed by a mafic dike down to 115.40m. The dike is interpreted to occupy a fault. Strongly altered footwall rhyolites occur to end of hole at 189.40m. No significant mineralisation was encountered in the drill hole (ASX: 20/04/20215). Drillhole GRO20-05 was a step out to the East from the copper intersection in GRO20-02 hole. The hole collared in moderate to strongly altered stratigraphic hanging wall pumiceous rhyolite. Alicanto Minerals Limited | 22 Directors’ Report 9. Review of Operations (continued) At 76.10m to end of hole at 189.30m, a basaltic sequence was intersected. Local swirly scoria-like textures are interpreted representing a fire fountain genesis. Strong epidote alteration occurs as local veins throughout the intersected basalt, accompanied by visual chalcopyrite, pyrrhotite and pyrite at 91.22-94.6m (ASX: 20/04/20211). Assay results show 3.41m with 0.20% copper including a vein with 1.12 % copper at 94.25-94.63m (ASX: 20/04/20211). Assay results from drillhole GRO20-02 returned 2.78m with 0.89% copper between 24.58-27.36m hosted by basalt, included a higher-grade vein with 2.12% copper and 0.25 g/t gold at 26.75-27.36m. A second zone at 32.80-34.36 meter assayed 1.18% copper and 0.1 g/t gold (ASX: 20/04/20211). Assays results from drillhole GRO20-03 drilled 2 km West of Green Mile shows anomalous copper values between 67.40-78.71 meters with highest grade at 72.04-72.29 with 0.15% copper (ASX: 20/04/20211). The intersected zones 500m East of Green Mile deposit is interpreted as copper-gold bearing medial parts of an alteration system asymmetrically affecting footwall and hanging wall felsic stratigraphy, preferably precipitating the sulphides in the intersected basalt formation. True limestone strata has not been intersected, possibly due to a combination of faults and palaeo topography. Structurally the Greater Falun area is quite complex, and more work remains to be done. South-west of the Green Mile deposit (owned by Boliden) a set of outcrops have been mapped with clastic basalt textures inferring the target formation outcrops at surface in the surrounding hanging wall felsic pyroclastics, indicating dome or ridge-like structures occurring to the south. This creates opportunities for near surface targeting within the more than 20km2 large area to the south consisting mainly of hanging wall pyroclastic rhyolites mapped at surface. Potential deposits would be blind and not have been touched by the inland ice with no traces in the form of boulders or metal anomalies in the till (refer Figure 12). If they occur at considerable depths, or have a steeply dipping rod like shape, they would be blind to most electromagnetic surveying attempts. Arakaka Gold Project Guyana, South America (AQI 100%) (ASX: 20/04/20215) In November 2020, Alicanto released its maiden JORC 2012-compliant Inferred Resource of 500,000oz at 1.8 g/t gold at its 100 per cent-owned Arakaka Gold Project in Northwest Guyana, South America (ASX: 16/11/20201). The Resource estimate stems from a review of the data at Arakaka collected by Alicanto in conjunction with that provided by Barrick Gold Corp and NordGold, and has been calculated by Perth-based Cube Consulting. Arakaka is located in a world-class gold mining province which also hosts projects such as Las Christinas/Las Brisas (27Moz), Aurora (6.5Moz) and Gros Rosebel (13.7Moz) – (SGA Field Guide – Bardoux et al 2018). The Maiden Mineral Resource Estimate (“MRE”) for the Arakaka Gold Project is taken from two separate domains, the Purple Heart and Gomes deposits located approximately 6km from one another. The Purple Heart resource lies within a stacked thrust system developed to the margin of multiple Porphyry intrusions of variable composition hosted within metavolcanics and metasediments. The stacked thrusts and coincident gold mineralisation dip at approximately 30o to the North West. Mineralisation has been observed to extend to approximately 150m vertical depth. At Gomes the current resource is located within approximately 500m of strike along a West South West dipping regional scale shear, the Temberlin shear zone. Lithological units, shear structures and mineralisation all dip at a moderate 30-40o to the West- Southwest. Mineralisation has been observed to extend approximately 100m vertical depth. All resources are reported at a 0.8 g/t gold lower cut-off which is deemed acceptable based on industry costings associated with the likely mining method (open pit, bulk-tonnage). Refer to Resource Statement on page 25 for more details. Alicanto’s Option over the Ianna project lapsed on 7th November 2020. Alicanto Minerals Limited | 23 Directors’ Report Corporate Capital Raisings The following capital raisings occurred during the year: • On 14 August 2020, a placement to sophisticated investors was completed raising $1,425,000, before issue costs through the issue of 25,909,090 shares at an offer price of $0.055 pursuant to ASX Listing Rule 7.1 and 7.1A. • On 30 November 2020, a placement to sophisticated investors was completed raising $6,000,000, before issue costs through the issue of 46,153,847 shares at an offer price of $0.130 pursuant to ASX Listing Rule 7.1 and 7.1A. Sale of Guyana Gold Project, South America During the year, Alicanto entered a sale agreement with Virgin Gold Corporation (Virgin Gold) under which Alicanto will sell its Arakaka Gold Project in Guyana to Virgin Gold for cash and shares with a total value of up to C$4.75 million, subject to satisfaction of milestones (Sale Agreement). The sale is subject to conditions precedent, including that Virgin Gold complete due diligence on the Arakaka Project (noting that this has subsequently been completed to the satisfaction of Virgin Gold), obtain any necessary third-party consents, complete a reverse takeover of Goldblock Capital Inc. (Goldblock Capital), an entity listed on the Canadian Stock Exchange (CSE), and procure that Goldblock Capital complete a capital raising of not less than C$5M through the issue of shares at a price to be determined (Listing Price) which is expected to occur in early October. In turn, Alicanto was required to obtain shareholder approval which was approved on 26 July 2021. The conditions precedent need to be satisfied or waived within 90 days (or such other date as agreed between the parties). The consideration for the sale is set out as follows: • C$50,000 cash deposit (received on 10 June 2021); • C$700,000 in cash at completion; • In addition, Alicanto can earn up to C$4 million in Goldblock common shares subject to Virgin achieving an NI43-101 compliant resources on the Arakaka Project in the two years following completion. Earn in as follows: Resources Targets Shares equivalent (C$) 0.50 Moz Au 1,000,000 0.75 Moz Au 1,000,000 1.00 Moz Au 1,000,000 2.00 Moz Au 1,000,000 TOTAL 4,000,000 Under the Sale Agreement, Alicanto will transfer 100% of its interests in the following subsidiaries: • StrataGold Guyana Inc.; and • Manticore Resources Inc. Virgin Gold is a privately held mining exploration company with its head office in Vancouver, British Columbia. Virgin Gold’s mineral exploration activities are focused on underexplored regions of Guyana with an immediate strategy to assemble a portfolio of high-quality gold assets. Virgin Gold has identified the Guiana Shield in Guyana as a stand-out region for gold exploration and is in the process of acquiring several prospecting and mining permits. Alicanto Minerals Limited | 24 Directors’ Report Resource Statement The Inferred Mineral Resource Estimate, at the 30 June 2021 for the Arakaka Gold Project in Northwest Guyana, South America is: Independent JORC 2012 Inferred resource estimate at selected lower cut-off grades at the Arakaka Gold Project Lower Cut-Off Tonnes (Mt) Grade Gold g/t Gold Million oz 0.5 g/t Au 0.8 g/t Au 1.0 g/t Au 13.2 9.1 6.0 1.4 1.8 2.2 0.61 0.52 0.43 0.8 g/t gold lower cut off. Totals rounded to reflect acceptable precision. • Figures may not add up due to rounding • Mineral Resources that are not Mineral Reserves have not demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues • Mineral Resources are reported at a block cut-off grade of 0.8 g/t Au • No minimum mining SMU parameters applied to the Inferred Mineral Resources. • The average bulk density assigned to the mineralisation is 2.7 g/cm3 for fresh rock, and variable within weathering zones (2.0 to 2.5 g/cm3). Please refer to ASX Release 16th November 2020 for further details. Classification The Mineral Resource his entirely classified as Inferred. The classification is based on the relative confidence in the mineralised domain countered by high nugget values, variable drill spacing, un-verifiable historical database and partial lack of historical quality assurance and quality control. Review of Material Changes As part of an annual review of resource, the economic assumptions outlined in accordance with principles of the JORC Code have been reviewed, and no material changes have been applied. Furthermore, the company is not in possession of any new information or data relating to the previously announced resource estimate, as such there is no material changes to the resource estimate and no comparison of estimates is necessary. No further review of the resource estimate has been completed following the annual review of mineral resources completed for the financial year ending 30 June 2021, and no further adjustments to resources are made in relation to subsequent events following the agreed sale of the Arakaka Gold Project as announced 1 June 2021. Governance Controls Alicanto has adopted the following governance arrangements and internal controls for the preparation of mineral resource estimations for the Company to ensure any Mineral Resource or Ore Reserve estimations prepared by Alicanto are reported in accordance with the principles of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 edition (JORC Code) and ASX Listing Rules. Exploration activity and material results acquired in support of Mineral Resource estimation is subject to regular internal review to confirm and compile exploration results on a continuous basis for disclosure to shareholders in accordance with ASX listing rule 5.7 and in accordance with requirements of the JORC Code. Compilation of exploration results is completed or overseen by Alicanto personnel that meet the requirements of a Competent Person in accordance with the principles of the JORC Code. Any documentation for the estimation of Mineral Resources or Ore Reserve must be prepared or overseen by a Competent Person in accordance with the principles of the JORC Code involving either Company personnel or an Independent Competent Person as deemed appropriate by Company management, with reporting of final documentation prepared in accordance with ASX listing rule(s) 5.8 and/or 5.9 as relevant to the consideration of modifying factors used in the estimation process. Alicanto Minerals Limited | 25 Directors’ Report 10. Likely Developments and Expected Results of Operations The Consolidated Entity will continue its mineral exploration activity at and around its exploration projects with the objective of identifying commercial resources. Material business risks that may impact the results of future operations include further exploration results, future commodity prices and funding. Further information on likely developments in the operations of the Company and the expected results of operations have not been included in the Annual Report because the Directors believe it would be likely to result in unreasonable prejudice to the Group. 11. Environmental Regulation The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with all appropriate regulations when carrying out any exploration work. 12. Information on Directors, Officers and Company Secretary Raymond Shorrocks Non-Executive Chairperson – appointed 7 August 2020 Qualifications Experience BA (Hons), MBA (Finance) Mr Shorrocks has more than 27 years’ experience in corporate finance in the mining sector and has advised a diverse range of resources companies during his career at one of Australia’s largest investment banking and stockbroking/financial services firms. He has been instrumental in managing and structuring equity capital raisings as well as having advised extensively in the area of mergers and acquisitions. Mr Shorrocks has worked on mines in South America, Africa, Australia, and North America. Interest in Securities 1,765,355 Fully Paid Ordinary Shares 10,000,000 Options expiring 13 August 2025, Exercise Price $0.10 Other Listed Directorships Previous Listed Directorships Peter George Qualifications Experience Galilee Energy Limited (Appointed 15 January 2014) Auteco Minerals Limited (Appointed 28 January 2020) Cygnus Gold Limited (Appointed 30 June 2020 Hydrocarbon Dynamics (Appointed 12 June 2016) Bellevue Gold Limited (Appointed 31 December 2015, resigned 9 September 2019) International Goldfields Limited (Appointed 8 September 2016, resigned 4 January 2018) Estrella Resources Limited (Appointed 24 January 2015, resigned 1 February 2019) Managing Director – appointed 7 August 2020 (Previously Chief Executive Officer since 6 August 2018) BEng (Mining)(WASM) Mr George has a background in company, project and operations management with over 20 years’ experience in gold, iron-ore, lithium, nickel, zinc, copper and other base metals projects across Australia companies, mining contractors/consultants and small to mid-cap miners. Most recently, Mr George held the role of Project Resident Manager at Mineral Resources Limited, where he was responsible for bringing the 200Mt+ Wodgina Lithium DSO operation into production within 49 days. having worked with major resources Europe, and Prior to Mineral Resources Limited, Mr George was Chief Operations Officer at Keras Resources (AIM) and was responsible for all operational aspects of the company including the rapid progress of multiple gold projects through the feasibility and approvals process and then into production. Mr George is a member of the Australasian Institute of Mining and Metallurgy, Graduate of the Australian Institute of Company Directors and holds a WA First Class Mine Managers Certificate of Competency. Interest in Securities 8,448,128 (6,000,000 release from escrow to 3 Feb 2021) Fully Paid Ordinary Shares 3,000,000 Options expiring 24 November 2025, Exercise Price $0.10 3,000,000 Performance Rights vesting period to 7 August 2022, not currently vested Other Listed Directorships Mr George does not hold any other directorships with any Listed entities Alicanto Minerals Limited | 26 Directors’ Report Didier Murcia AM Qualifications Experience Non-Executive Director – appointed 7 August 2020 (Previously Non-Executive Chairperson 30 May 2012 to 7 August 2020) LLB, BJuris Mr Murcia holds a Bachelor of Jurisprudence and Bachelor of Laws from the University of Western Australia, and has over 30 years’ experience in corporate, commercial and resource law. Mr Murcia is Non-Executive Chairperson of Strandline Resources Limited and Non-Executive Chairperson of Centaurus Metals Limited, both of which are listed on the Australian Securities Exchange. He is also Chairperson of Perth law firm Murcia Pestell Hillard and the Honorary Consul for the United Republic of Tanzania. In January 2014, Mr Murcia was made a Member of the Order of Australia in recognition of his significant service to the international community. Interest in Securities 1,272,500 Fully Paid Ordinary Shares 2,000,000 Options expiring 24 November 2025, Exercise Price $0.10 Other Listed Directorships Centaurus Metals Limited (Appointed 16 April 2009) Strandline Resources Limited (Appointed 23 October 2014) Company Secretary and Chief Financial Officer Michael Naylor BCom CA Appointed - 1 April 2020 Mr Naylor has 24 years’ experience in corporate advisory and public company management since commencing his career and qualifying as a chartered accountant with Ernst & Young. Mr Naylor has been involved in the financial management of mineral and resources focused public companies serving on the board and in the executive management team focusing on advancing and developing mineral resource assets and business development. Mr Naylor has worked in Australia and Canada and has extensive experience in financial reporting, capital raisings, debt financings and treasury management of resource companies. Mr Naylor is an Executive Director at Bellevue Gold Limited and a Non-Executive Director of Auteco Minerals Limited and Midas Minerals Limited. Alicanto Minerals Limited | 27 Directors’ Report 13. Audited Remuneration Report The Directors are pleased to present your Company’s 2021 remuneration report which sets out remuneration information for Alicanto Minerals Limited’s non-executive directors, executive directors and other key management personnel. The remuneration report is set out under the following headings: A. Directors and key management personnel disclosed in this report; B. Remuneration governance; C. Use of remuneration consultants; D. Executive remuneration policy and framework; E. Group Performance, Shareholder Wealth and Executive Remuneration F. Non-Executive Director remuneration policy; G. Voting and comments made at the Company’s 2020 Annual General Meeting; H. Details of remuneration; I. Details of share based compensation and bonuses; J. K. Equity instruments held by key management personnel; L. Loans to key management personnel; M. Other transaction with key management personnel. Service agreements; A. Directors and key management personnel disclosed in this report This report details the nature and amount of remuneration for all key management personnel of Alicanto Minerals Limited and its subsidiaries. The information provided within this remuneration report has been audited as required by section 308(C) of the Corporations Act 2001. The Individuals included in this report are: Executive Director Mr P George Managing Director (appointed 7 August 2020, previously Chief Executive Officer) Non-Executive Directors Mr Raymond Shorrocks Non-Executive Chairperson (appointed 7 August 2020) Mr D Murcia Mr T Schwertfeger Mr H Halliday Non-Executive Director (appointed 7 August 2020, previously Non-Executive Chairperson 30 May 2012 to 7 August 2020) Non-Executive Director (resigned 7 August 2020) Non-Executive Director (resigned 7 August 2020) Other Key Management Personnel M Naylor Company Secretary (appointed 1 April 2020) B. Remuneration Governance The role of a Remuneration Committee is to assist the Board in fulfilling its responsibilities in respect of establishing appropriate remuneration levels and incentive policies for employees. As the whole Board only consists of three (3) members, the Company does not have a remuneration committee and therefore the full board acts as the remuneration committee. The Board has established a broad remuneration policy which is consistent with the Company’s business objectives and designed to attract and retain high calibre individuals, align key management personnel remuneration with the creation of shareholder value and motivate executives to achieve challenging performance levels. The business and operational environment of the Company is dynamic and ever changing and so too is the remuneration policies. As such the broader remuneration policies, whilst currently under specific and detailed review, are by nature, always under consideration by the Board. Further information relating to the role of the Board and its responsibilities in relation to remuneration policies can be found within the Company’s website available the Corporate Governance https://www.alicantominerals.com.au/corporate/corporate-governance/. Statement which inspection on for is C. Use of remuneration consultants The Company has not engaged or contracted remuneration consultants during the financial year. Alicanto Minerals Limited | 28 Directors’ Report 13. Audited Remuneration Report (continued) D. Executive remuneration policy and framework Remuneration Policy The remuneration policy of Alicanto Minerals Limited has been designed to align executives’ objectives with shareholder and business objectives by providing both fixed and discretionary remuneration components which are assessed on an annual basis in line with market rates. By providing components of remuneration that are indirectly linked to share price appreciation (in the form of options and performance rights), executive, business and shareholder objectives are indirectly aligned. The board of Alicanto Minerals Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best directors to run and manage the Company, as well as create goal congruence between Directors and Shareholders. In determining competitive remuneration rates, the Board review local and international trends among comparative companies and industry generally. It examines terms and conditions for employee incentive schemes, benefit plans and share plans. Independent data is sourced to ensure that the company’s remuneration levels fall within the 50th to 75th percentile of companies in a similar industry group and with a similar market capitalisation. These ongoing reviews are performed to confirm that executive remuneration is in line with market practice and is reasonable in the context of Australian executive reward practices. The Board also ensures that the mix of executive compensation between fixed, variable, long-term, short-term and cash versus equity is appropriate. The Company endeavours to reduce cash expenditure by providing a greater proportion of compensation in the form of equity instruments. This allows cash-flows to be directed towards exploration programs with a view to improving the quality of our projects. Mix of Remuneration - June 2021 100% 75% 50% 25% 0% Mr R Shorrocks Mr D Murcia Mr P George Mr T Schwertfeger Mr H Halliday Mr M Naylor Fixed LTI Fixed Remuneration All executives receive a base cash salary which is based on factors such as length of service and experience as well as other fringe benefits. All applicable executives also receive a superannuation guarantee contribution required by the government, which was 9.5% during the 2021 financial year and do not receive any other retirement benefits. Note that effective 1 July 2021 the super guarantee rate has risen to 10.0% and will be effective from the 2022 financial year. Short-term Incentives (STI) Under the Company’s current remuneration policy, executives can from time to time receive short-term incentives in the form of cash bonuses. The Board can use its discretion when paying bonuses, however they have currently determined relevant industry key performance targets such as, definition and growth of existing resources, targets and on-going Executive loyalty to the Company. The Board believes that the criteria of eligibility for short-term incentives appropriately aligns shareholder wealth and executive remuneration as the completion of key performance targets have the potential to increase share price growth. There were no cash bonuses paid out in the current financial year. Alicanto Minerals Limited | 29 Directors’ Report 13. Audited Remuneration Report (continued) D. Executive remuneration policy and framework (continued) Long-term Incentives (LTI) Executives are encouraged by the Board to hold shares in the Company and it is therefore the objective of the Company’s option scheme to provide an incentive for participants to partake in the future growth of the company and, upon becoming shareholders in the Company, to participate in the Company’s profits and dividends that may be realised in future years. The Board considers that this equity performance linked remuneration structure is effective in aligning the long-term interests of group executives and shareholders as there exists a direct correlation between shareholder wealth and executive remuneration. E. Group Performance, Shareholder Wealth and Executive Remuneration The remuneration policy has been tailored to increase goal congruence between shareholders directors and executives. This has been achieved by the issue of performance options to directors, executives and other key management personnel, at the discretion of the Board of Directors. The performance options are issued under the Employee Incentive Scheme and based on a mixture of short, medium and long-term incentive options. This structure rewards executives for both short-term and long-term shareholder wealth development. F. Non-Executive Director remuneration policy The Boards policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and responsibilities. Fees for non-executive directors are not linked to the performance of the group. Typically, the Company will compare non-executive remuneration to companies with similar market capitalisations in the exploration and resource development business group. These ongoing reviews are performed to confirm that non-executive remuneration is in line with market practice and is reasonable in the context of Australian executive reward practices. Further to ongoing reviews, the maximum aggregate amount of fees that can be paid to non-executive directors is currently $500,000 as per the Company’s constitution. No change is being requested for approval by shareholders at the Annual General Meeting. During the current year a total of 15,000,000 options and 3,000,000 Performance Rights were issued to directors, which were approved by shareholders at the shareholder meetings held on 4 November 2020. (2020: No options were issued during the period). Options were issued to non-executives as they provide an indirect mechanism of aligning shareholder wealth and non- executive director remuneration. The remuneration policy, setting the terms and conditions for the non-executive directors was developed and approved by the Board. In determining competitive remuneration rates, the Board reviews local and international trends among comparative companies and industry generally. Reviews are performed to confirm that executive remuneration is in line with market practice and is reasonable in the context of Australian non-executive reward practices. G. Voting and comments made at the Company’s 2020 Annual General Meeting The Company received 99.97% of “Yes” votes on its remuneration report for the 2020 financial year (2019: 85.7%). The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. Alicanto Minerals Limited | 30 Directors’ Report 13. Audited Remuneration Report (continued) H. Details of Remuneration The Key Management Personnel of Alicanto Minerals Limited for the year ended 30 June 2021 are set out in the table below. There have been no changes to the below named key management personnel since the end of the reporting period unless noted. Short-Term Employee Benefits Post Employment Securities Total Incentives Consulting fees Other Amounts Super- annuation Cash Salary & Fees $ 59,583 32,850 1,667 2,452 244,872 90,000 2021 Non-Executive Directors Mr R Shorrocks 1 Mr D Murcia Mr H Halliday 2 Mr T Schwertfeger 3 Executive Director Mr P George 4 Other Key Management Personnel Mr M Naylor Total Remuneration 431,424 $ $ - 3,518 1,083 - - - 3,731 3,791 59 59 3,791 3,791 $ - - - - - - - Options & Performanc e Rights $ $ 498,123 6. 172,634 - - 561,437 212,793 2,809 2,511 $ - - - - 23,263 353,518 5 625,444 - 298,873 392,664 4,601 15,222 23,263 1,323,148 1,797,658 1: Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 2: Mr Halliday resigned as Non-Executive Director on 7 August 2020. 3:: Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 4: Mr George was appointed as Chief Executive Officer of the Company on 6 August 2018 holding this position during the year and was subsequently appointed as Managing Director on 7 August 2020. 5: This amount includes an amount from prior year options which amounted to $2,485 and performance rights expensed of $92,081. 6 The 10 million options granted to Mr R Shorrocks were granted on 6 August, prior to Mr R Shorrocks joining the board. These options were issued on 13 August 2020. Accordingly, the value of these options have been included in the above table, as the options were issued to him as a result of him joining the board. Short-Term Employee Benefits Post Employment Securities Total 2020 Non-Executive Directors Mr D Murcia Mr H Halliday 1 Mr T Schwertfeger 2 Mr R Shorrocks 3 Executive Director Mr P George 4 Other Key Management Personnel Mr P George 4 Mr J Byrde 5 Mr M Naylor 6 Cash Salary & Fees $ 32,850 24,000 29,400 - - 200,000 48,433 15,000 Total Remuneration 349,683 Incentives $ - - - - - - - - - Consulting fees $ Other Amounts $ Super- annuation $ Options $ - - - - - $ 35,666 35,816 32,216 - - - - - - - 19,000 - - 8,517 - - 230,333 50,545 15,704 - 9,000 - - - - - - 2,816 2,816 2,816 - - 2,816 2,112 704 9,000 14,080 19,000 8,517 400,280 1: Mr Halliday resigned as Non-Executive Director on 7 August 2020. 2: Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 3: Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 4: Mr George was appointed as Chief Executive Officer of the Company on 6 August 2018 holding this position during the year and was subsequently appointed as Managing Director on 7 August 2020. 5: Mr Byrde resigned as Company Secretary on 1 April 2020. 6: Mr Naylor was appointed as Company Secretary on 1 April 2020. Alicanto Minerals Limited | 31 Directors’ Report 13. Audited Remuneration Report (continued) I. Details of share-based compensation and bonuses Options are issued to directors and executives as part of their remuneration. The options are not always issued based on performance criteria and in the instances, they are not, they are issued to the majority of directors and executives of Alicanto Minerals Limited to increase goal congruence between executives, directors and shareholders. Options issued – 30 June 2021 (i) During the year a total of 56,000,000 options were issued to directors, management, consultants and advisors which were approved and/or ratified by shareholders at the shareholder meetings held on 4 November 2020. Included in these approvals / ratifications is 15,000,000 options issued to directors and 6,000,000 issued to key management personnel as set out in the following table. (ii) On 18 August 2020, Mr P George exercised 500,000 options being options granted in financial year 2019. Further details of options issued during the year to Directors and key management personnel are as follows: Granted No. Fair Value at Grant Date $ Total Remuneration Represented by Options Exercised No. Other changes No. Lapsed No. 2021 Non-Executive Directors Mr R Shorrocks 1, 8 Mr D Murcia Mr H Halliday 2 Mr T Schwertfeger 3 Executive Director Mr P George 4 10,000,000 2,000,000 - - 498,123 172,634 - - 89% 81% - - - - - - 3,000,000 258,952 41%7 (500,000)5 Other Key Management Personnel Mr M Naylor 6 6,000,000 298,873 76% - - - - - - - - - - - - - 1: Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 2: Mr Halliday resigned as Non-Executive Director on 7 August 2020. 3: Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 4: Mr George was appointed as Chief Executive Officer of the Company on 6 August 2018 holding this position during the year and was subsequently appointed as Managing Director on 7 August 2020. Mr George also received $92,081 new performance rights and $2,485 options vesting which were issued in 2019. 5: The options exercised of 500,000 were part of the 1,000,000 options granted in 2019 financial year. 6: Mr Naylor was appointed as company secretary on 1 April 2020. 7: Total % calculated included the $2,485 final expense from prior year options. 8. The 10 million options granted to Mr R Shorrocks were granted on 6 August, prior to Mr R Shorrocks joining the board. These options were issued on 13 August 2020. Accordingly, the value of these options have been included in the above table, as the options were issued to him as a result of him joining the board. Options issued – 30 June 2020 There were no options issued during the prior year. (i) On 5 July 2019, Mr George exercised 500,000 options being part of the 1,000,000 options granted in the prior year. Alicanto Minerals Limited | 32 Directors’ Report 13. Audited Remuneration Report (continued) I. Details of share-based compensation and bonuses (continued) Granted No. Fair Value at Grant Date $ Total Remuneration Represented by Options Exercised No. Other changes No. Lapsed No. 2020 Non-Executive Directors Mr D Murcia Mr H Halliday 1 Mr T Schwertfeger 2 Mr R Shorrocks 3 Executive Director Mr P George 4 Other Key Management Personnel Mr P George 4 Mr J Byrde 5 Mr M Naylor 6 - - - - - - - - - - - - - - - - - - - - - - 8,517 - 4% - (500,000) 7 - - - - - - - - - - - - - - - 1: Mr Halliday resigned as Non-Executive Director on 7 August 2020. 2: Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 3: Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 4: Mr George was appointed as Chief Executive Officer of the Company on 6 August 2018 holding this position during the year and was subsequently appointed as Managing Director on 7 August 2020. 5: Mr Byrde resigned as Company Secretary on 1 April 2020. 6: Mr Naylor was appointed as Company Secretary on 1 April 2020. 7: The options exercised of 500,000 were part of the 1,000,000 options granted in prior year. Grant Date Expiry Date % Vested in Year Exercise Price 2021 Non-Executive Directors Mr R Shorrocks 1, 5 Mr D Murcia Mr H Halliday 2 Mr T Schwertfeger 3 Executive Mr P George 4 6 Aug 20 24 Nov 20 - - 13 Aug 25 24 Nov 25 - - 24 Nov 20 24 Nov 25 Other Key Management Personnel Mr M Naylor 6 Aug 20 13 Aug 25 100% 100% - - 100% 100% Number of Options 10,000,000 2,000,000 - - 3,000,000 $0.100 $0.100 - - $0.100 $0.100 6,000,000 1: Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 2: Mr Halliday resigned as Non-Executive Director on 7 August 2020. 3: Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 4: Mr George was appointed as Chief Executive Officer of the Company on 6 August 2018 holding this position during the year and was subsequently appointed as Managing Director on 7 August 2020. 5. The 10 million options granted to Mr R Shorrocks were granted on 6 August, prior to Mr R Shorrocks joining the board. These options were issued on 13 August 2020. Accordingly, the value of these options have been included in the above table, as the options were issued to him as a result of him joining the board. Alicanto Minerals Limited | 33 Directors’ Report 13. Audited Remuneration Report (continued) I. Details of share-based compensation and bonuses (continued) Grant Date Expiry Date % Vested in Year Exercise Price Number of Options 2020 Non-Executive Directors Mr D Murcia Mr H Halliday 1 Mr T Schwertfeger 2 Mr R Shorrocks 3 Executive Mr P George 4 - - - - - - - - - - Other Key Management Personnel Mr P George 4 Mr J Byrde 5 Mr M Naylor 6 19 Oct 18 - - 6 Aug 21 - - - - - - - 50% - - - - - - - - - - - - $0.001 - - 500,000 - - 1: Mr Halliday resigned as Non-Executive Director on 7 August 2020. 2: Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 3: Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 4: During the year Mr George held the position of Chief Executive Office and was subsequently appointed as Managing Director on 7 August 2020. The options held is the remaining balance of 500,000 from 1,000,000 options issued in the 2019 financial year. 5: Mr Byrde resigned as Company Secretary on 1 April 2020. 6: Mr Naylor was appointed as Company Secretary on 1 April 2020. The value at grant date is calculated in accordance with AASB2 Share Based Payments utilising the Black Scholes Methodology. The following factors and assumptions were used in determining the fair value of options issued to key management personnel on grant date: Grant Date Expiry Date Exercise Price Fair Value Per Option Price of Shares on Grant Date Estimated Volatility Risk Free Interest Rate Dividend Yield 2021 13 Aug 20 25 Nov 20 2020 - 13 Aug 25 25 Nov 25 $0.100 $0.100 $0.0498 $0.0863 $0.080 $0.124 - - - - 85% 85% - 0.39% 0.26% - 0% 0% - Historical volatility has been the basis for determining expected share price volatility as it assumed that this is indicative of future tender, which may not eventuate. The life of the options is based on historical exercise patterns, which may not eventuate in the future. Alicanto Minerals Limited | 34 Directors’ Report 13. Audited Remuneration Report (continued) I. Details of share-based compensation and bonuses (continued) Performance Shares issued – 30 June 2021 (i) During the year a total of 5,500,000 performance rights were issued to directors and consultants which were approved by shareholders at the shareholder meetings held on 4 November 2020 of which a total of 3,000,000 were issued to directors as set out in the table below. Performance Shares issued – 30 June 2020 There were no performance shares issued during the prior year. Granted No. Portion of Fair Value Recognised as Expense in Financial Year $ Total Remuneration Represented by Performance Rights Vested Other changes No. Lapsed No. 2021 Non-Executive Directors Mr R Shorrocks 1 Mr D Murcia Mr H Halliday 2 Mr T Schwertfeger 3 Executive Director Mr P George 4 - - - - - - - - 3,000,000 92,081 5 Other Key Management Personnel Mr M Naylor - - - - - - 15% - - - - - - - - - - - - - - - - - - - 1: Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 2: Mr Halliday resigned as Non-Executive Director on 7 August 2020. 3: Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 4: Mr George was appointed as Chief Executive Officer of the Company on 6 August 2018 holding this position during the year and was subsequently appointed as Managing Director on 7 August 2020. 5: The performance rights issued on 4 November 2020 have been assessed as having a total fair value of $372,000 over their life to 7 August 2022, subject to vesting conditions. The remaining fair value is currently assessed as $279,919 but which will be continually reviewed based on the probability assigned to the achievement of required performance milestones. J. Services Agreements Remuneration and other key terms of employment for the Executives, Non-Executives and Other Executives of Alicanto Minerals Limited are formalised in executive service agreements. Major provisions of the agreements relating to remuneration are set out below: Mr D Murcia, Non-executive Chairperson (resigned as Non-Executive Chairperson and appointed as Non-Executive Director 7 August 2020) Term of Agreement – unspecified. Normal Base fee of $60,000 exclusive of superannuation. From 1 July 2018 a voluntary fee reduction of 30% to 31 October 2018 reduced to $45,990 Since 1 November 2018 reduced to $32,850. Eligible to participate in the Company’s Employee Incentive Scheme. No termination benefit under any circumstances. Mr P George, Chief Executive Officer (appointed as Managing Director 7 August 2020) Term of Agreement – unspecified Base salary of $262,800 inclusive of superannuation. From 1 June 2019, Mr George accepted a voluntary reduction to a Base salary of $219,000 inclusive of superannuation. Following appointment as Managing Director on 7 August 2020 Base salary increased to $273,750 inclusive of superannuation. Payment of a termination benefit on early termination by the company, other than for gross misconduct, equal to 12 weeks base fee, being payment in lieu of the specified termination notice period. In the event there is change of control a payment of 6 months base fee will become payable. Eligible to participate in the Company’s Employee Incentive Scheme. Alicanto Minerals Limited | 35 Directors’ Report 13. Audited Remuneration Report (continued) J. Services Agreements (continued) Mr H Halliday, Non-executive Director (resigned 7 August 2020) Term of Agreement – unspecified. Base fee of $20,000 Non-Executive Director and $80,000 Management Consultant inclusive of superannuation. From 1 July 2018, a voluntary reduction of 30% is in place for a total base fee of $70,000. From 1 November 2018, this reduced to $50,000 Since 1 May 2019 this reduced down to $24,000. Eligible to participate in the Company’s Employee Incentive Scheme. No termination benefit under any circumstances. Mr T Schwertfeger, Non Executive Director (resigned 7 August 2020) Non-Executive Director is on a base fee of $36,000 per annum inclusive of superannuation is payable Since 1 October 2018, a voluntary reduction was accepted for a total fee of $30,000 and includes a consulting fee of $500 per day as required. Eligible to participate in the Company’s Employee Incentive Scheme. No termination benefit under any circumstances. Mr M Naylor, Company Secretary (appointed 1 April 2020) Term of Agreement – Agreement is held with related entity and charged on a monthly basis in arrears for Mr Naylor’s services as Chief Financial Officer and Company Secretary. Base fee of $60,000 inclusive of Superannuation from 1 April 2020 and increasing to $90,000 from 1 July 2020. Payment of a termination benefit on early termination by the company, other than for gross misconduct, equal to 3 months base fee, being payment in lieu of the specified termination notice period. Eligible to participate in the Company’s Employee Incentive Scheme. K. Equity instruments held by key management personnel Shares Balance at the start of the year/ on appointment Received on exercise of options Other purchases Held on date of resignation Balance at the end of the year 2021 Directors of Alicanto Minerals Limited Mr R Shorrocks 1 Mr D Murcia Mr P George 2 Mr T Schwertfeger 3 Mr H Halliday 4 492,628 522,500 6,584,492 2,400,000 11,825,000 - 750,000 500,000 - - 1,272,727 - 1,363,636 - - - - - 2,400,000 11,825,000 1,765,355 1,272,500 8,448,128 - - Other key management personnel Mr M Naylor - - 2,794,918 - 1. Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 2. Mr George was appointed as Chief Executive Officer of the Company on 6 August 2018 holding this position during the year and was subsequently appointed as Managing Director on 7 August 2020. 3. Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 4. Mr Halliday resigned as Non-Executive Director on 7 August 2020. Alicanto Minerals Limited | 36 Directors’ Report 13. Audited Remuneration Report (continued) K. Equity instruments held by key management personnel (continued) Shares Balance at the start of the year/ on appointment Received on exercise of options Other purchases Held on date of resignation Balance at the end of the year 2020 Directors of Alicanto Minerals Limited Mr D Murcia Mr T Schwertfeger Mr H Halliday 522,500 2,400,000 5,825,000 Other key management personnel Mr P George1 Mr J Byrde 2 Mr M Naylor 3 - 300,000 - - - - 500,000 - - - - 6,000,000 6,084,492 - - - - - 522,500 2,400,000 11,825,000 - 300,000 - 6,584,492 - - 1: During the year Mr P George held the position as Chief Executive Officer and was subsequently appointed as Managing Director on 7 August 2020 (2019: Mr P George appointed as Chief Executive Officer on 6 August 2018) 2: M J Byrde resigned on 1 April 2020 3: Mr M Naylor appointed on 1 April 2020 Unlisted options Balance at start of the year/ on appointment Granted as remuneration Exercised Held on date of resignation Balance at end of the year Vested and exercisable 2021 Directors of Alicanto Minerals Limited Mr R Shorrocks 1 Mr D Murcia Mr P George 2 Mr T Schwertfeger 3 Mr H Halliday 4 - 750,000 500,000 - 1,000,000 10,000,000 2,000,000 3,000,000 - - - (750,000) (500,000) - - - - - - 1,000,000 10,000,000 2,000,000 3,000,000 - - 10,000,000 2,000,000 3,000,000 - - Other key management personnel Mr M Naylor - 6,000,000 - - 6,000,000 6,000,000 1. Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 2. Mr George was appointed as Chief Executive Officer of the Company on 6 August 2018 holding this position during the year and was subsequently appointed as Managing Director on 7 August 2020. 3. Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 4. Mr Halliday resigned as Non-Executive Director on 7 August 2020. Unlisted options Balance at start of the year/ on appointment Granted as remuneration Exercised Held on date of resignation Balance at end of the year Vested and exercisable 2020 Directors of Alicanto Minerals Limited Mr D Murcia Mr T Schwertfeger Mr H Halliday Other key management personnel Mr P George 1 Mr J Byrde 2 Mr M Naylor 3 750,000 - 1,000,000 1,000,000 300,000 - - - - - - - - - - - - - (500,000) - - - 300,000 - 750,000 - 1,000,000 500,000 - - 750,000 - 1,000,000 - - - 1: During the year Mr P George held the position as Chief Executive Officer and was subsequently appointed as Managing Director on 7 August 2020 (2019: Mr P George appointed as Chief Executive Officer on 6 August 2018) 2: M J Byrde resigned on 1 April 2020 3: Mr M Naylor appointed on 1 April 2020 Alicanto Minerals Limited | 37 Directors’ Report 13. Audited Remuneration Report (continued) K. Equity instruments held by key management personal (continued) Listed Options ($0.28, 28 July 2019) Balance at start of the year Granted as remuneration Exercised Other changes Balance at end of the year Vested and exercisable 2021 There were no listed options on issue during the year. 2020 Directors of Alicanto Minerals Limited Mr D Murcia Mr T Schwertfeger Mr H Halliday Other key management personnel Mr P George Mr M Harden Mr J Byrde Mr M Naylor 1,250 50,000 75,000 - - - - - - - - - - - - - - - - - - Performance Rights d e d r a w a r e b m u n l a t o T r a e Y l a i c n a n i F e t a d d r a w A e t a d g n i t s e V e t a d y r i p x E Directors of Alicanto Minerals Limited Mr R Shorrocks 1 Mr D Murcia Mr P George 2 Mr T Schwertfeger 3 Mr H Halliday 4 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 - - - - 3,000,000 - - - - - - - - - 04/11/2020 - - - - - Other key management personnel Mr M Naylor 5 2021 2020 - - - - - - - - - - - - - - - - - - - - 07/08/2022 - - - - - - - (1,250) (50,000) (75,000) e c n a m r o f r e p f o e u a v l r i a F e t a d d r a w a t h g i r - - - - 372,000 - - - - d e l l e c n a c / d e s p a l r e b m u N r a e y g n i r u d d e t i e f r o f e h t g n i r u d d e t n a r g r e b m u N r a e y - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - e c n a m r o f r e p f o e u a v l l a t o T - - - - - - - e h t g n i r u d d e t n a r g t h g i r r a e y g n i r u d d e s i n g o c e r t n u o m A d o i r e p g n i t s e v e h t - - - - - - - - - - - - - - - - 92,081 - - - - - - - The exercise of Performance Rights is subject of the performance hurdles being met by the holder. 1. Mr Shorrocks was appointed as Non-Executive Chairperson on 7 August 2020. 2. Mr George was appointed as Chief Executive Officer of the Company on 6 August 2018 holding this position during the year and was subsequently appointed as Managing Director on 7 August 2020. 3. Mr Schwertfeger resigned as Non-Executive Director on 7 August 2020. 4. Mr Halliday resigned as Non-Executive Director on 7 August 2020. 5 The performance rights issued on 4 November have been assessed at having a fair value over its life to 7 August 2022 and subject to vesting conditions. Alicanto Minerals Limited | 38 Directors’ Report 13. Audited Remuneration Report (continued) L. Loans to key management personnel There were no loans made to directors of Alicanto Minerals Limited and other key management personnel of the group, including their close family members or entities related to them. M. Other transactions with key management personnel Recharges from Director and key management personnel related entities: Recharge of costs by Bellevue Gold Limited (i) Recharge of costs by Auteco Minerals Limited (ii) Recharge of costs by Venture Minerals Limited (iii) Recharge of costs by Blackstone Minerals Limited (iii) Purchases from Director related entities Purchases for legal services from Murcia Pestell Hilliard Lawyers (iv) Consolidated 2021 $ 97,445 23,907 867 2,399 2020 $ - - 31,874 113,271 3,517 8,754 Outstanding balances arising from recharges/purchases with Director Related Parties: Current payables 86,343 31,131 (i) Mr Naylor is an Executive Director of Bellevue Gold Limited a company which holds the head lease for Right of Use Asset and on charges rent, office and other administration service costs on normal terms and conditions. (ii) Mr Shorrocks is Executive Chairman and Mr Naylor a Non-Executive Director of Auteco Minerals Limited which shares office and administration service costs on normal commercial terms and conditions. (iii) Mr H Halliday who resigned as a director of Alicanto on 7 August 2020 was a Non-Executive Director of Venture Minerals Limited and Blackstone Minerals Limited which shares office and administration service costs on normal commercial terms and conditions. (iv) Mr D Murcia is a Director of Murcia Pestell Hillard a company which provided legal services on normal commercial terms and conditions. In addition to the above, Mr George and Mr Halliday are included in the Zaffer vendors that may benefit in the future from the net 2.5% smelter royalties agreed to and as disclosed as a contingent liability on page 74 in Note 27. End of Remuneration Report. Alicanto Minerals Limited | 39 Directors’ Report 14. Shares under Option and Performance Rights Unissued ordinary shares of Alicanto Minerals Limited under option at the date of this report are as follows: Date Options Issued 15 Mar 19 17 Jun 19 14 Aug 20 24 Nov 20 24 Nov 20 24 Nov 20 24 Nov 20 24 Nov 20 02 Aug 21 Expiry Date 14 Mar 24 23 Jun 23 13 Aug 25 24 Nov 25 24 Nov 25 24 Nov 25 24 Nov 25 24 Nov 25 26 Jul 26 Exercise Price $0.030 $0.065 $0.100 $0.100 $0.100 $0.150 $0.200 $0.250 $0.200 Number under Option 5,000,000 24,000,000 37,000,000 9,000,000 2,500,000 2,500,000 2,500,000 2,500,000 10,000,000 No option holder has any right under the options to participate in any other share issue of the Company or any other entity. Unissued ordinary shares of Alicanto Minerals Limited under performance rights at the date of this report are as follows: Date Performance Rights Issued 24 Nov 20 10 Dec 20 02 Aug 21 02 Aug 21 Expiry Date Exercise Price 07 Aug 22 31 Dec 22 02 Aug 24 02 Aug 24 Nil Nil Nil Nil Number under Performance Rights 3,000,000 1,500,000 4,000,000 500,000 15. Proceedings on behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of these proceedings. The Company was not a party to any such proceedings during the year. 16. Meetings of Directors The number of Directors' meetings held during the financial year that each Director who held office during the financial year was eligible to attend and the number of meetings attended by each Director were: Director Mr R Shorrocks Mr D Murcia Mr P George Mr T Schwertfeger Mr H Halliday 17. Insurance of Officers Directors Meetings Number Eligible to Attend 3 4 3 1 1 Meetings Attended 3 4 3 1 1 Alicanto Minerals Limited has paid a premium of $15,222 (2020: $14,080) to insure the directors and secretary of the Company and its controlled entities. The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of entities in the group, and any other payments arising from liabilities incurred by the officers in connection with such proceedings. This does not include such liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else or to cause detriment to the company. Alicanto Minerals Limited | 40 Directors’ Report 18. Auditors Independent Declaration and Non-Audit Services The lead auditor’s independence declaration for the year ended 30 June 2021 has been received and can be found on page 43 of the Directors’ report. No non-audit services have been provided by the auditor, Stantons International Audit and Consulting during the financial year. The Auditor’s audit remuneration is disclosed in Note 5. Signed in accordance with a resolution of the Board of Directors. Raymond Shorrocks Non-Executive Chairperson Perth Western Australia, 28 September 2021 Alicanto Minerals Limited | 41 Competent Persons Statement Competent Person’s Statement The information in this report that relates to Exploration Results is based on and fairly represents information compiled by Mr Marcus Harden and Mr Lundstam who are Members of The Australian Institute of Geoscientists. Mr Harden and Mr Lundstam are Chief Geologists for the Company in Guyana and Sweden respectively. Mr Harden and Mr Lundstam have sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hardenand Mr Lundstam consents to their inclusion in the report of the matters based on his information in the form and context in which it appears. Forward Looking Statements Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors constitute, among others, continued funding, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; changes in project parameters as exploration strategies continue to be refined; renewal of mineral concessions; accidents, labour disputes, contract and agreement disputes, and other sovereign risks related to changes in government policy; changes in policy in application of mining code; political instability; as well as those factors discussed in the section entitled "Risk Factors" in the Company’s rights issue prospectus. The Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, however there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. New Information or Data The company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement. Notes 1 For full details of these Exploration results, refer to the said ASX Announcement. Alicanto is not aware of any new information or data that materially affects the information included in the said announcement. Alicanto Minerals Limited | 42 PO Box 1908 West Perth WA 6872 Australia Level 2, 1 Walker Avenue West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au 28 September 2021 The Directors Alicanto Minerals Limited Ground Floor 24 Outram Street West Perth, WA 6005 Dear Sirs RE: ALICANTO MINERALS LIMITED In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Alicanto Minerals Limited. As Audit Director for the audit of the financial statements of Alicanto Minerals Limited for the year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) (ii) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and any applicable code of professional conduct in relation to the audit. Yours sincerely STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LIMITED Martin Michalik Director Liability limited by a scheme approved under Professional Standards Legislation Stantons Is a member of the Russell Bedford International network of firms Financial Statements Contents Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Directors’ Declaration Independent Auditor’s Report 45 46 47 48 49 76 77 These financial statements are the consolidated financial statements of the consolidated entity consisting of Alicanto Minerals Limited and its subsidiaries. The financial statements are presented in the Australian currency. Alicanto Minerals Limited is a Company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Alicanto Minerals Limited Ground Floor 24 Outram Street WEST PERTH WA 6005 A description of the nature of the consolidated entity's operations and its principal activities is included in the review of operations and activities on pages 4 to 27 in the Directors’ report, both of which is not part of these financial statements. The financial statements were authorised for issue by the directors on 28 September 2021. The Company has the power to amend and reissue the financial statements. Through the use of the internet, the Company has ensured that its corporate reporting is timely, complete, and available globally at minimum cost to the Company. All press releases, financial statements and other information are available on our website: www.alicantominerals.com.au. Alicanto Minerals Limited | 44 Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2021 Revenue from continuing operations Other income Administrative costs Consultancy expense Employee benefits expense Share based payment expenses Occupancy expense Compliance and regulatory expenses Insurance expenses Depreciation expense Depreciation on right of use assets Write-off of property plant and equipment Preacquisition costs - Sweden project Finance costs Exploration expenditure Note 3(a) 3(b) 4(a) 26 4(b) 10 9 4(c) 11(iii) Consolidated 2021 $ 9,142 81,679 (398,974) (1,986,088) (415,921) (1,024,275) (74,924) (93,729) (27,244) (57,064) (107,156) (7,396) - (11,638) (3,247,522) 2020 $ 296 282,295 (298,869) (178,323) (326,453) (8,517) (23,234) (71,316) (32,694) (84,047) - - (36,051) (6,049) (848,117) (Loss) before income tax (7,361,110) (1,631,079) Income tax expense 6(a) - - (Loss) attributable to owners (7,361,110) (1,631,079) Other comprehensive income: Items that may be reclassified to profit or loss - Items that will not be classified to profit or loss Exchange differences on translation of foreign operations 18(c) (211,559) (21,571) - Total comprehensive (loss) attributable to owners (7,572,669) (1,652,650) Basic and Diluted loss per share (cents per share) 20 (2.4) (0.8) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. Alicanto Minerals Limited | 45 Consolidated Statement of Financial Position As at 30 June 2021 Current Assets Cash and cash equivalents Trade and other receivables Assets held for sale Total Current Assets Non-Current Assets Trade and other receivables Property, plant and equipment Right of use assets Exploration and evaluation expenditure Total Non-Current Assets Total Assets Current Liabilities Trade and other payables Provisions Lease liabilities Hire purchase liabilities Total Current Liabilities Non-Current Liabilities Lease liabilities Hire purchase liabilities Total Non-Current Liabilities Total Liabilities Net Assets Equity Contributed equity Reserves Accumulated losses Total Equity Note 7 8(a) 9 8(b) 9 10 11 12 13 14 15 14 15 Consolidated 2021 $ 2020 $ 4,512,532 310,713 208,805 2,431,923 98,251 - 5,032,050 2,530,174 486,388 7,577 409,411 1,500,000 35,122 307,468 - 1,500,000 2,403,376 1,842,590 7,435,426 4,372,764 699,736 32,351 10,915 207,835 950,837 39,268 107,872 147,140 209,998 18,388 - - 228,386 - - - 1,097,977 228,386 6,337,449 4,144,378 16 18(d) 25,793,913 4,906,140 (24,362,604) 19,164,805 1,981,067 (17,001,494) 6,337,449 4,144,378 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Alicanto Minerals Limited | 46 Consolidated Statement of Changes in Equity For the Year Ended 30 June 2021 Consolidated Contributed Equity Accumulated Losses $ $ Foreign Currency Translation Reserve $ Option Reserve Total $ $ Balance at 1 July 2019 Total comprehensive (loss) for the year: Loss for the year Foreign exchange differences 14,496,233 (15,370,415) (35,675) 2,046,830 1,136,973 - - - (1,631,079) - - (21,571) (1,631,079) (21,571) - - - (1,631,079) (21,571) (1,652,650) Transactions with owners in their capacity as owners: Contributions of equity (net of transaction costs) Share based payment transactions 4,651,538 17,034 4,668,572 - - - - - - - (8,517) (8,517) 4,651,538 8,517 4,660,055 Balance at 30 June 2020 19,164,805 (17,001,494) (57,246) 2,038,313 4,144,378 Balance at 1 July 2020 Total comprehensive (loss) for the year: Loss for the year Foreign exchange differences Transactions with owners in their capacity as owners: Contributions of equity (net of transaction costs) Share based payment transactions 19,164,805 (17,001,494) (57,246) 2,038,313 4,144,378 - - - (7,361,110) - (7,361,110) (211,559) (211,559) 6,609,108 20,000 6,629,108 - - - - - - - - - - (7,572,669) - (7,572,669) 6,609,108 3,136,632 3,136,632 3,156,632 9,765,740 Balance at 30 June 2021 25,793,913 (24,362,604) (268,805) 5,174,945 6,337,449 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes. Alicanto Minerals Limited | 47 Consolidated Statement of Cash Flows For the Year Ended 30 June 2021 Cash Flows from Operating Activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees Interest received Payments for exploration and evaluation Contributions received from farm-in partners Government grants and tax incentives Net cash (outflow) from operating activities Cash Flows from Investing Activities Purchase of property, plant and equipment Acquisition of mineral tenements Proceeds transferred to security deposits Net cash (outflow) from investing activities Cash Flows from Financing Activities Proceeds from issue of shares Share issue transaction costs Payment to secure and transport drill rig to Sweden Repayment of lease liabilities Note Consolidated 2021 $ 2020 $ 53,238 (1,143,123) 8,089 (3,243,730) - 28,548 (4,296,978) (3,967) - (450,800) (454,767) 7,427,251 (394,782) (79,079) (121,036) 197,200 (995,027) 370 (4,644,741) 4,213,803 25,376 (1,203,019) (12,140) (374,014) - (386,154) 3,410,744 (259,206) - - 11 21 9 11 15 21 Net cash inflow from financing activities 6,832,354 3,151,538 Net increase in cash and cash equivalents 2,080,609 1,562,365 Cash and cash equivalents at the beginning of the year 2,431,923 869,558 Cash and cash equivalents at the end of the year 7 4,512,532 2,431,923 Amounts relating to payments to suppliers and employees as set out above are inclusive of goods and services tax. The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. Alicanto Minerals Limited | 48 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 1. Summary of Significant Accounting Policies The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to the financial years presented, unless otherwise stated. These financial statements cover Alicanto Minerals Limited as a consolidated entity consisting of Alicanto Minerals Limited and its subsidiaries (‘the consolidated entity’ or ‘the group’). (a) Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements and the Corporations Act 2001. (i) (ii) Compliance with IFRS The financial statements of Alicanto Minerals Limited also comply with Australian Equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial statements and notes as presented comply with International Financial Reporting Standards (IFRS). Historical cost convention These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available for sale financial assets. (iii) Going Concern The financial report has been prepared on a going concern basis. The directors believe there are sufficient grounds to believe that the business will be able to continue to pay its debts as and when they fall due. For the year ended 30 June 2021, the Group incurred a loss before tax of $7,361,110 (2020: $1,631,079). At 30 June 2021, the Group had total current assets of $5,032,050 (2020: $2,530,174) and total current liabilities of $950,837 (2020: $228,386). The Group’s ability to continue as a going concern basis is dependent upon maintain sufficient funds for its operations and commitments. The Directors continue to be focused on meeting the Group’s business objectives and is mindful of the funding requirements to meet these objectives. The Directors consider the basis of going concern to be appropriate based on future cash forecasts, existing cash reserves and the ability to significantly reduce activity and preserve cash if necessary. Furthermore, the Directors are also of the opinion that a capital raising could be achieved to raise additional funds if required. Should the Group be unable to undertake the initiatives disclosed above, there is uncertainty which may cast doubt as to whether or not the Group will be able to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern. (b) Principles of consolidation (i) Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Alicanto Minerals Limited as at 30 June 2021 and the results of all subsidiaries for the year then ended. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. A list of subsidiaries is provided in Note 28. The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statement of the Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between group entities are eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted by the Group. Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-controlling interests”. The Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled to a proportionate share of the subsidiary’s net assets on liquidation at either fair value or at the non-controlling interests’ proportionate share of the subsidiary’s net assets. Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and each component of other comprehensive income. Non-controlling interests are shown separately within the equity section of the statement of financial position and statement of profit or loss. Alicanto Minerals Limited | 49 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 1. Summary of Significant Accounting Policies (continued) (b) Principles of consolidation(continued) (ii) (iii) Joint arrangements Under AASB 11 Joint Arrangements investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. Alicanto Minerals Limited is not involved in any joint arrangements. Jointly operations Alicanto Minerals Limited recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. Alicanto Minerals Limited is not involved in any joint operations. (c) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the board of directors. (d) Revenue recognition Revenue is recognised when performance obligations are satisfied, being when control upon goods or services underlying the performance is transferred to the customer. (i) Interest income Interest income is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset. (ii) Other income Revenue from other income, rendering goods and services is measured at the fair value of consideration received or receivable for the sale of goods and services in the ordinary course of the Group’s activities when control of the asset is transferred to the customer or services rendered. (iii) Grant income Grant income received from Governments is recognised on an accrual basis. This includes grants received from Australian Taxation Office (ATO) from the Cashflow Boost during 2021. (e) Income tax The income tax expense or revenue for the year is the tax payable on the current year’s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity. (f) Impairment of assets At each reporting date, the Board assesses whether there is any indication that an asset may be impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the Alicanto Minerals Limited | 50 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 1. Summary of Significant Accounting Policies (continued) (f) Impairment of assets (continued) higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date. (g) Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. (h) Trade and other receivables Trade and other receivables include amounts due from customers for goods and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. (i) Exploration and evaluation expenditure Exploration, evaluation and development expenditure is expensed as incurred other than for the capitalisation of acquisition costs. (j) Property, plant and equipment All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. 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 company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or loss and other comprehensive income during the financial year in which they are incurred. Depreciation on assets is calculated using the reducing balance method to allocate their cost, net of their residual values, over their estimated useful lives, as follows: Plant and equipment - office Furniture and equipment - office Plant and equipment - field Motor vehicles 40.0% 20.0% 20.0% 22.5% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet 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 (note 1(f)). Gains and losses on disposals are determined by comparing proceeds received with the carrying amount. These are included in the statement of profit or loss and other comprehensive income. (k) Intangibles Acquired minerals rights Acquired minerals rights comprise exploration and evaluation assets including ore reserves and minerals resources which are acquired as part of: • • business combinations recognised at fair value at the date of acquisition; and asset acquisitions recognised at cost. Acquired minerals rights are carried forward only if they relate to an area of interest for which rights of tenure are current and in respect of which: • such costs are expected to be recouped through successful development and exploitation or from sale of the area: or Alicanto Minerals Limited | 51 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 1. Summary of Significant Accounting Policies (continued) (k) Intangibles (continued) • exploration and evaluation activities in the area have not, at balance date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active operations in, or relating to, the area are continuing. Acquired minerals rights in respect of areas of interest which are abandoned are written off in full against profit or loss in the year in which the decision to abandon the area is made. For acquired minerals rights in an area of interest that are developed, costs are classified as mine property and development from commencement of development and amortised when commercial production commences on a unit of production basis over the estimated economic reserves of the mine. (l) Financial Instruments Recognition, initial measurement and derecognition Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument. Financial instruments (except for trade receivables) are measured initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active market are used to determine the fair value. In other circumstances, valuation techniques are adopted. Subsequent measurement of financial assets and financial liabilities are described below. Trade receivables are initially measured at the transaction price if the receivables do not contain a significant financing component in accordance with AASB 15. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires. Classification and subsequent measurement Financial assets Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable). For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments, are classified into the following categories upon initial recognition: • • • amortised cost; fair value through other comprehensive income (FVOCI); and fair value through profit or loss (FVPL). Classifications are determined by both: • The contractual cash flow characteristics of the financial assets; and • The entities business model for managing the financial asset. Financial assets at amortised cost Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVPL): • • they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding. Alicanto Minerals Limited | 52 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 1. (l) Summary of Significant Accounting Policies (continued) Financial Instruments After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments. Financial assets at fair value through other comprehensive income (Equity instruments) The Group measures debt instruments at fair value through OCI if both of the following conditions are met: • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding; and • The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling the financial asset. For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under AASB 132 Financial Instruments: Presentation and are not held for trading. Financial assets at fair value through profit or loss (FVPL) Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial liabilities Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss. All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in profit or loss. Impairment The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by AASB, which requires expected lifetime losses to be recognised from initial recognition of the receivables. (m) Trade and other payables These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. (n) Provisions Provisions are recognised when; the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the balance sheet date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. Alicanto Minerals Limited | 53 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 1. Summary of Significant Accounting Policies (continued) (o) Employee benefits (i) Short-term obligations Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are presented in payables. (ii) Other long-term employee benefit obligations (o) (iii) The liability for long service leave and annual which is not expected to be settled within 12 months after the end of the period in which the employees render the related service is recognised in the provision for employee benefits and measured as present value of expected future wage payments to be made. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period. The obligations are presented as current liabilities in the balance sheet if the entity Employee benefits (continued) does not have an unconditional right to defer settlement for at least twelve months after the reporting regardless of when the actual settlement is expected to occur. Share-based payments The company provides benefits to employees (including directors) of the company in the form of share-based payment transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’). The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option. In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of shares of Alicanto Minerals Limited (‘market conditions’). (p) Contributed equity Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares for the acquisition of a business are not included in the cost of the acquisition as part of the purchase consideration. (q) Earnings per share (i) Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year. (ii) Diluted earnings per share Diluted earnings per share adjusts the Figures used in the determination of basic earnings per share to take into account the after-tax effect of interest and other financing costs associated with the dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. (r) Goods and services tax (‘GST’) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow. Alicanto Minerals Limited | 54 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 1. Summary of Significant Accounting Policies (continued) (s) Foreign currency translation (i) Functional and presentation currency Items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollars, which is Alicanto Minerals Limited’s functional and presentation currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges, qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. Translation differences on financial assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary financial assets such as equities classified as available for sale financial assets are included in the fair value reserve in equity. (iii) Group companies The results and financial position of foreign operations that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • • Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; Income and expenses for the statement of profit or loss and other comprehensive income are translated at average exchange rates, and All resulting exchange differences are recognised in other comprehensive income. • (t) Leases The Group as lessee At inception of a contract the Group assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a corresponding liability are recognised by the Group where the Group is a lessee. However, all contracts that are classified as short-term leases (i.e. leases with a remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a straight-line basis over the term of the lease. Initially, the lease liability is measured at the present value of the lease payments still to be paid at the commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the Group uses incremental borrowing rate. Lease payments included in the measurement of the lease liability are as follows; • • • • • • fixed lease payments less any lease incentives; variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date; the amount expected to be payable by the lessee under residual value guarantees; the exercise price of purchase options if the lessee is reasonably certain to exercise the options; lease payments under extension options, if the lessee is reasonably certain to exercise the options; and payments of penalties for terminating the lease, if the lease term reflects the exercise of options to terminate the lease. The right-of-use asses comprise the initial measurement of the corresponding lease liability, any lease payments made at or before the commencement date and any initial direct costs. The subsequent measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses. Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the shortest. Where a lease transfers ownership of the underlying asset or the costs of the right-of-use asset reflects that the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset. Alicanto Minerals Limited | 55 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 1. Summary of Significant Accounting Policies (continued) (t) Leases (continued) The Group as lessor The Group does not have any property which has been leased out, and therefore not applicable. (u) New and amended standards adopted by the Group The Group has considered the implications of new and amended Accounting Standards which have become applicable for the current financial reporting period. Initial adoption of AASB 2020-04: COVID-19-Related Rent Concessions AASB 2020-4: Amendments to Australian Accounting Standards – COVID-19-Related Rent Concessions amends AASB 16 by providing a practical expedient that permits lessees to assess whether rent concessions that occur as a direct consequence of the COVID-19 pandemic and, if certain conditions are met, account for those rent concessions as if they were not lease modifications. Initial adoption of AASB 2018-6: Amendments to Australian Accounting Standards – Definition of a Business AASB 2018-6 amends and narrows the definition of a business specified in AASB 3: Business Combinations, simplifying the determination of whether a transaction should be accounted for as a business combination or an asset acquisition. Entities may also perform a calculation and elect to treat certain acquisitions as acquisitions of assets. Initial adoption of AASB 2018-7: Amendments to Australian Accounting Standards – Definition of Material This amendment principally amends AASB 101 and AASB 108 by refining the definition of material by improving the wording and aligning the definition across the standards issued by the AASB. Initial adoption of AASB 2019-3: Amendments to Australian Accounting Standards – Interest Rate Benchmark This amendment amends specific hedge accounting requirements to provide relief from the potential effects of the uncertainty caused by interest rate benchmark reform. Initial adoption of AASB 2019-1: Amendments to Australian Accounting Standards – References to the Conceptual Framework This amendment amends Australian Accounting Standards, Interpretations and other pronouncements to reflect the issuance of Conceptual Framework for Financial Reporting by the AASB. The standards listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. Alicanto Minerals Limited | 56 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 2. Critical accounting estimates and judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates and judgements may differ from the related actual results and may have a significant effect on the carrying amount of assets and liabilities within the next financial year and on the amounts recognised in the financial statements. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (a) (b) Impairment of acquisition costs on exploration projects The acquisition costs in relation to the exploration and evaluation assets were impaired at the half year 31 December 2018, and whilst the Board have budgeted expenditure on the Guyana projects, they have elected not to reverse the impairment. Share based payment transactions The group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by an internal valuation using a Black-Scholes option pricing model, using the assumptions detailed in note 26. (c) Recovery of deferred tax assets Deferred tax assets are recognised for deductible temporary differences when management considers that it is probable that future taxable profits will be available to utilise those temporary differences. 3. Revenue (a) Revenue from continuing operations Interest received Total revenue from continuing operations (b) Other income Foreign currency (losses)/ gains Management fees from farm-in partners Cashflow boost Other income Total other income 4. Expenses (a) Employee benefits expense Salaries and wages expense Defined contribution superannuation expense Total employee benefits expense (b) Depreciation expense Leasehold Improvements Plant and equipment – office Plant and equipment – field Plant and equipment – motor vehicle Total depreciation expense (c) Finance costs Interest and finance charges paid or payable Total finance costs 2021 $ 9,142 9,142 (107) - 28,548 53,238 81,679 2021 $ 392,658 23,263 415,921 1,667 4,703 25,457 25,237 57,064 11,638 11,638 Consolidated 2020 $ 296 296 - 197,200 - 85,095 282,295 Consolidated 2020 $ 307,453 19,000 326,453 5,511 7,416 35,782 35,338 84,047 6,049 6,049 Alicanto Minerals Limited | 57 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 5. Auditor’s Remuneration Remuneration of the auditor of the group Auditing or reviewing the financial statements Total auditor remuneration 6. Income Tax Expense (a) Income tax expense Current tax Deferred tax Total income tax expense Deferred income tax expense included in income tax expense comprises: - (Increase) in deferred tax assets (note 6(c)) - Increase in deferred tax liabilities (note 6(d)) Consolidated 2021 $ 38,500 38,500 2020 $ 37,795 37,795 Consolidated 2021 $ 2020 $ - - - - - - - - - - - - (b) Numerical reconciliation of income tax expense to prima facie tax payable Loss from continuing operations before income tax expense Tax (tax benefit) at the tax rate of 26.0% (2020: 27.5%) (7,361,110) (1,913,889) (1,631,079) (448,546) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: - Share based payments - Other non-deductible amounts - Unrecognised tax losses - Non-assessable income 710,651 847,338 348,477 7,423 2,342 314,782 144,507 (13,085) Income tax expense (c) Deferred tax assets Tax lossesA Employee benefits Other accruals Set-off deferred tax liabilities (note 6(d)) Net deferred tax assets (e) Tax losses - - - - - - - - - - - - - - Unused tax losses for which no deferred tax asset has been recognized Potential tax benefit at 25% (2020: 26%) 10,894,205 2,723,551 9,455,387 2,458,401 (f) Unrecognised temporary differences Unrecognised future deductions relating to capital raising costs Unrecognised deferred tax asset on capital raising costs at 25% (2020: 26%) 228,320 57,080 108,409 28,186 A: The deferred tax asset attributable to tax losses has not been brought to account as it is not probable that the Group will make taxable profits against which the Tax Losses can be utilised. Alicanto Minerals Limited | 58 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 7. Cash and Cash Equivalents Total cash and cash equivalents (a) Cash at bank and on hand Total cash and cash equivalents Consolidated 2021 $ 2020 $ 4,512,532 2,431,923 4,512,532 2,431,923 (b) (c) Cash at bank and on hand Cash on hand is non-interest bearing. Cash at bank bears interest rates between 0.00% and 0.35% (2020: 0.00% and 0.2%). Cash denominated in foreign currency Included in cash and cash equivalents the following Australian dollar equivalent are held Swedish Krona Guyanese Dollars Total cash and cash equivalents denominated in foreign currency 197,561 4,214 201,775 25,137 2,685 27,822 Trade and Other Receivables 8. (a) Current Other receivables Prepayments Total current trade and other receivables (b) Non-Current Security deposits Total non-current trade and other receivables Consolidated 2021 $ 300,502 10,211 310,713 486,388 486,388 2020 $ 92,851 5,400 98,251 35,122 35,122 (c) (d) Past due and impaired receivables As at 30 June 2021, there were no other receivables that were past due or impaired (2020: nil). Receivables denominated in foreign currency Included in receivable equivalents the following Australian dollar equivalent are held Swedish Krona Guyanese Dollars Total receivable equivalents denominated in foreign currency 4,206 266,148 270,354 47,959 15,753 63,712 Alicanto Minerals Limited | 59 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 Leasehold Improvements Plant and Equipment Office Plant and Equipment Field Motor Vehicles Consolidated Total $ $ $ $ $ 9. Property, Plant and Equipment Year ended 30 June 2020 Opening net book amount Additions Depreciation charge Effect of exchange rates Closing net book amount At 30 June 2020 Cost Accumulated depreciation Net book amount Year ended 30 June 2021 Opening net book amount Additions Depreciation charge Written off balance Reclassification to non- current asset held for sale Effect of exchange rates Closing net book amount At 30 June 2021 Cost Reclassification to non- current asset held for sale Accumulated depreciation Net book amount 10,656 3,122 (5,511) - 8,267 30,737 (22,470) 8,267 8,267 - (1,667) (6,600) - - - - - - - 16,536 7,490 (7,416) 329 16,939 52,655 (35,716) 16,939 16,939 3,967 (4,703) (796) (6,831) (999) 7,577 171,991 1,528 (35,782) 3,175 140,912 260,101 (119,189) 140,912 140,912 - (25,457) - (100,681) (14,774) - 173,294 - (35,338) 3,394 141,350 284,751 (143,401) 141,350 141,350 - (25,237) - (101,293) (14,820) - 372,477 12,140 (84,047) 6,898 307,468 628,244 (320,776) 307,468 307,468 3,967 (57,064) (7,396) (208,805) (30,593) 7,577 54,592 250,975 274,840 580,407 (6,831) (40,184) 7,577 (100,681) (150,294) - (101,293) (173,547) - (208,805) (364,025) 7,577 9(b) Property, Plant and Equipment reclassification Current Non-current Total Consolidated 2021 $ 208,805 7,577 216,382 2020 $ - 307,468 307,468 Sale of Gold Project Guyana, South America6 During the year, Alicanto entered a sale agreement with Virgin Gold Corporation (Virgin Gold) under which Alicanto will sell its Arakaka Gold Project in Guyana to Virgin Gold for cash and shares with a total value of up to C$4.75 million, subject to satisfaction of milestones (Sale Agreement). The sale is subject to conditions precedent, including that Virgin Gold complete due diligence on the Arakaka Project (noting that this has subsequently been completed to the satisfaction of Virgin Gold), obtain any necessary third-party consents, complete a reverse takeover of Goldblock Capital Inc. (Goldblock Capital), an entity listed on the Canadian Stock Exchange (CSE), and procure that Goldblock Capital complete a capital raising of not less than C$5M through the issue of shares at a price to be determined (Listing Price) which is expected to occur in early October. Included in the Property, plant and equipment are assets held by Strata Gold with a written down value of $208,805 (refer Note 23 Segment Report on page 69-70). Due to the expected completion of this sales within the next 12 months, the carrying value of these assets has been reclassified as non-current held for sale as disclosed in the consolidated statement of financial position. Alicanto Minerals Limited | 60 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 10. Right of Use Assets Right of use lease asset – on initial recognition Right of use hire purchase asset – on initial recognition Right of use asset at cost Depreciation - lease for the year Depreciation - hire purchase for the year Depreciation for the year Net carrying amount Amount recognised in profit or loss Depreciation expense on right to use assets Consolidated 2021 $ 2020 $ 59,488 457,079 516,567 (10,906) (96,250) (107,156) 409,411 (107,156) - - - - - - The Company has a sub-lease over part of the premises at Ground Floor, 24 Outram Street, West Perth with an estimated life of 4.1 years remaining. Where the option to extend is reasonably certain, this has been included in the calculation. The maturity analysis of the lease liabilities is shown at note 14. The Company has entered into a hire purchase agreement to acquire a drill rig, with ownership transferring to it on satisfaction of the terms of the lease, being on meeting total payments set out in the agreement. The maturity analysis of the lease liabilities is shown at note 15. 11. Exploration and Evaluation Expenditure Non-current Opening balance Exploration and evaluation costs Acquisition of assets - Sweden (i) Option payment to acquire Arakaka (ii) Contributions received from farm-in partners Exploration expensed – Guyana (iii) Exploration expensed – Sweden (iii) Total non-current exploration and evaluation expenditure Consolidated 2021 $ 2020 $ 1,500,000 3,247,522 - - - (673,170) (2,574,352) 1,500,000 - 4,687,906 1,500,000 374,014 (4,213,803) (126,893) (721,224) 1,500,000 (i) On 3 February 2020 Alicanto Minerals Limited exercised its option to acquire 100% of shares in Zaffer (Australia) Pty Ltd (“Zaffer”) which owns the Oxberg and Naverberg VMS (Volcanogenic Massive Sulphide) Projects within the highly endowed Cu-Au-Zn-Pb-Ag Bergslagen Mining District of Southern Sweden. In accordance with the terms of the Option and Share Sale Agreement approved by Shareholders on 31 July 2019 Alicanto issued 30,000,000 ordinary fully paid shares equally to the shareholders of Zaffer Australia Pty Ltd, in accordance with the Agreement, escrowed for 12 months. (ii) On 12 May 2020, Alicanto announced that it will retain 100% of the Arakaka Gold Project in Guyana following Nord Gold SE election not to exercise its option to acquire Arakaka. (iii) Combined exploration expenditure expensed in Guyana and Sweden totals $3,247,522 (2020: $848,117). Alicanto Minerals Limited | 61 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 12. Trade and Other Payables Current Trade payables Other payables Total current trade and other payables No trade or other payables are considered past due. Consolidated 2021 $ 270,608 429,128 699,736 2020 $ 64,545 145,453 209,998 (a) Payables denominated in foreign currency Included in receivable equivalents the following Australian dollar equivalent are held Swedish Krona Guyanese Dollars Total payables equivalents denominated in foreign currency 446,642 7,812 454,454 80,029 8,102 88,131 13. Provisions Current Employee entitlements Total current provisions 14. Lease Liabilities Current Non-current Amount recognised in profit and loss Interest expense incurred on lease liability Consolidated 2021 $ 32,351 32,351 Consolidated 30 June 2021 $ 10,915 39,268 50,183 2,281 2020 $ 18,388 18,388 30 June 2020 $ - - - - Lease liability maturity At 30 June 2021 Lease Payments Finance Charge Within 1 Year 12,951 (2,036) 1 – 2 Years 2 – 3 Years 3 – 4 Years 4 – 5 Years Total 13,300 (1,526) 13,660 (978) 14,032 (388) Net Present Value 10,915 11,774 12,682 13,644 1,172 (4) 1,168 55,115 (4,932) 50,183 Alicanto Minerals Limited | 62 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 15. Hire purchase liabilities Current Non-current Amount recognised in profit and loss Interest expense incurred on lease liability Consolidated 30 June 2021 $ 207,835 107,872 315,707 9,357 30 June 2020 $ - - - - The Company made a payment of $79,079 for securing and transporting the drill rig to Sweden. Hire purchase liability maturity At 30 June 2021 Lease Payments Finance Charge Within 1 Year 218,900 (11,065) 109,450 (1,578) Net Present Value 207,835 107,872 1 – 2 Years 2 – 3 Years 3 – 4 Years 4 – 5 Years Total - - - - - - - - - 328,350 (12,643) 315,707 16. Contributed Equity (a) Issued capital Ordinary shares (fully paid) Total contributed equity (b) Ordinary Shares Consolidated 2021 Shares 2020 Shares Consolidated 2021 $ 2020 $ 327,867,461 327,867,461 253,354,524 253,354,524 25,793,913 19,164,805 25,793,913 19,164,805 Ordinary shares participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held and in proportion to the amount paid up on the shares held. At shareholders meetings, each ordinary share is entitled to one vote in proportion to the paid-up amount of the share when a poll is called, otherwise each shareholder has one vote on a show of hands. (c) Options Information relating to options including details of options issued, exercised and lapsed during the financial year and options and performance rights outstanding at the end of the financial year, is set out in note 17. (d) Performance Rights Information relating to options including details of performance rights issued, exercised and lapsed during the financial year and options and performance rights outstanding at the end of the financial year, is set out in note 26. Alicanto Minerals Limited | 63 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 Date Shares Issue Price Total $ 16. Contributed Equity (continued) (e) Movements in issued capital Opening Balance 1 July 2019 Exercise of options Exercise of listed options Placement Zaffer acquisition shares Placement Less: Transaction costs Closing Balance at 30 June 2020 5 Jul 19 29 Jul 19 6 Sep 19 3 Feb 20 27 Feb 20 Opening Balance 1 July 2020 Placement Exercise of options Placement Exercise of options Performance shares issued 14 Aug 20 18 Aug 20 30 Nov 20 22 Apr 21 27 Apr 21 Less: Transaction costs (1) Closing Balance at 30 June 2021 172,020,313 500,000 873 17,500,004 30,000,000 33,333,334 253,354,524 253,354,524 25,909,090 1,500,000 46,153,847 750,000 200,000 327,867,461 $0.0010 $0.2800 $0.0520 $0.0500 $0.0750 $0.0550 $0.0010 $0.1300 $0.0010 $0.1000 14,496,233 17,534 244 910,000 1,500,000 2,500,000 (259,206) 19,164,805 19,164,805 1,425,000 1,500 6,000,000 750 20,000 (818,142) 25,793,913 (1) Amount includes fair value of 10,000,000 unlisted options issued to corporate advisors which amounted to $423,360. Expiry date Exercise price Balance at start of year Granted during the year Exercised during the year Cancelled/ lapsed during the year Balance at end of the year 17. Share Options (a) 2021 unlisted share option details 30 Apr 21 6 Aug 21 14 Mar 24 17 Jun 23 13 Aug 25 24 Nov 25 24 Nov 25 24 Nov 25 24 Nov 25 24 Nov 25 $0.001 $0.001 $0.030 $0.065 $0.100 $0.100 $0.100 $0.150 $0.200 $0.250 Weighted average exercise price (b) 2020 unlisted share option details 28 Jul 19 28 Jul 19 30 Apr 21 6 Aug 21 14 Mar 24 17 Jun 23 $0.230 $0.130 $0.001 $0.001 $0.030 $0.065 Weighted average exercise price 1,750,000 500,000 5,000,000 24,000,000 - - - - - - 31,250,000 $0.055 7,060,000 348,000 1,750,000 1,000,000 5,000,000 24,000,000 39,158,000 $0.086 - - - - 37,000,000 9,000,000 2,500,000 2,500,000 2,500,000 2,500,000 56,000,000 $0.113 - - - - - - - - (1,750,000) (500,000) - - - - - - - - (2,250,000) $0.001 - - -- (500,000) - - (500,000) $0.001 - - - - - - - - - - - - (7,060,000) (348,000) - - - - (7,408,000) $0.225 - - 5,000,000 24,000,000 37,000,000 9,000,000 2,500,000 2,500,000 2,500,000 2,500,000 85,000,000 $0.095 - - 1,750,000 500,000 5,000,000 24,000,000 31,250,000 $0.055 As at 30 June 2021, there were no listed options on issue. Alicanto Minerals Limited | 64 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 18. Reserves (a) Unlisted option reserve Opening balance Unlisted options issued Unlisted option vested Exercise of options Closing balance 2021 $ 2,038,313 2,897,250 2,485 - 4,938,048 Consolidated 2020 $ 2,046,830 - 8,517 (17,034) 2,038,313 The share based payment reserve records items recognised on valuation of director, employee and contractor share options and performance rights. Information relating to options and performance rights issued, exercised and lapsed during the financial year and options outstanding at the end of the financial year, is set out in note 17 and 26 respectively (b) (c) Performance rights reserve Opening balance Portion of fair value recognised as expense Closing balance Functional currency translation reserve Opening balance Exchange differences arising on translation of foreign operations Closing balance - 236,897 236,897 (57,246) (211,559) (268,805) - - - (35,675) (21,571) (57,246) Exchange differences arising on translation of the foreign controlled entity are taken to the foreign currency translation reserve. The reserve is recognised in the statement of profit or loss when the net investment is disposed of. (d) Total reserves Unlisted option reserve and performance rights reserves Exchange differences arising on translation of foreign operations Closing balance 5,174,945 (268,805) 4,906,140 2,038,313 (57,246) 1,981,067 19. Financial Instruments, Risk Management Objectives and Policies The Consolidated Entity’s principal financial instruments comprise cash and cash equivalents. The main purpose of the financial instruments is to earn the maximum amount of interest at a low risk to the group. The Consolidated Entity also has other financial instruments such as trade and other receivables and trade and other payables which arise directly from its operations. For the year under review, it has been the Consolidated Entity’s policy not to trade in financial instruments. The main risks arising from the Consolidated Entity’s financial instruments are interest rate risk and credit risk. The board reviews and agrees policies for managing each of these risks and they are summarised below: Alicanto Minerals Limited | 65 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 19. Financial Instruments, Risk Management Objectives and Policies (continued) (a) Interest Rate Risk The Groups exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rate for each class of financial assets and financial liabilities comprises: Consolidated 2021 Financial assets Cash and cash equivalents Trade and other receivables (current) Trade and other receivables (non- current) Financial Liabilities Trade and other payables (current) Lease liabilities Hire purchase liabilities Consolidated 2020 Financial assets Cash and cash equivalents Trade and other receivables (current) Trade and other receivables (non- current) Financial Liabilities Trade and other payables (current) Weighted Average Interest Rate % Floating Interest Rate $ Fixed Interest $ Non- interest Bearing $ 2021 Total $ 0.18% 0.00% 0.33% 0.19% 0.00% 4.50% 5.00% 1.69% - - - - - - - - 4,000,000 - 470,800 512,532 300,502 15,588 4,512,532 300,502 486,388 4,470,800 828,622 5,299,422 - 50,183 315,707 699,736 - - 699,736 50,183 315,707 365,890 699,736 1,065,626 Weighted Average Interest Rate % Floating Interest Rate $ Fixed Interest $ Non- interest Bearing $ 2020 Total $ 0.05% 0.00% 1.10% 3,958 - - - - 20,000 2,427,965 92,851 15,122 2,431,923 92,851 35,122 3,958 20,000 2,535,938 2,559,696 0.00% - - 209,998 209,998 The maturity date for all cash, current trade and other receivable and current trade and payable financial instruments included in the above tables is one year or less from balance date. The maturity for the non-current trade and other receivables is between 1 and 3 years from balance date. (b) Group Sensitivity analysis The Consolidated Entity’s main interest rate risk arises from cash and cash equivalents with variable and fixed interest rates. At 30 June 2021 and 30 June 2020, the Group’s exposure to interest rate risk is not considered material. (c) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group. The group has adopted the policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The group does not have any significant credit risk exposure to any single counterparty or any company of counterparties having similar characteristics. The carrying amount of financial assets recorded in the financial statements, net of any provisions for losses, represents the company’s maximum exposure to credit risk. Alicanto Minerals Limited | 66 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 19. Financial Instruments, Risk Management Objectives and Policies (continued) (d) Liquidity risk The group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Due to the dynamic nature of the underlying businesses, the group aims at ensuring flexibility in its liquidity profile by maintaining the ability to undertake capital raisings. Funds in excess of short-term operational cash requirements are generally only invested in short term bank bills. (e) Foreign Currency Risk The Group is exposed to currency risk arising from exchange rate fluctuations on purchases that are denominated in currency other than the respective functional currencies of the Group entities, primarily the Australian Dollar (AUD), Guyanese Dollars (GUD), Swedish Krona (SEK) and United states Dollar (USD). The currencies in which these transactions are primarily denominated in are AUD, GUY, SEK and the USD. Sensitivity analysis The following able illustrates sensitivities to the Group’s exposure to changes exchange rates. The table indicates the impact of how profit and equity values reported at the end of the reporting period would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. The sensitivities assume that the movement in a particular variable is independent of other variables. Year ended 30 June 2021 Increase in SEK exchange rate by 10% Decrease in SEK exchange rate by 10% Year ended 30 June 2020 Increase in SEK exchange rate by 10% Decrease in SEK exchange rate by 10% Consolidated Consolidated Loss $000 257,435 (257,435) Loss $000 72,122 (72,122) Equity $000 3,266 (3,266) Equity $000 819 (819) The group’s exposure to foreign currency exchange risk in GYD and USD is not considered material and therefore no sensitivity analysis has been performed. The Group’s investments in its Guyanese and Swedish subsidiaries are denominated in AUD and are not hedged as those currency positions are considered long term in nature. The Group does not have a hedging policy in place. 20. Loss per Share (a) Loss Loss used in the calculation of basic EPS (b) Weighted average number of ordinary shares (‘WANOS’) WANOS used in the calculation of basic loss per share: (c) Basic loss per share (d) Diluted Loss Per Share Diluted loss per share is considered to be the same as the basic loss per share, as the potential ordinary shares on issue are anti-dilutive and have not been applied inf calculating dilutive loss per share. Consolidated 2021 $ 2020 $ (7,361,110) (1,631,079) 304,587,133 210,444,730 (2.4) (2.4) (0.08) (0.8) Alicanto Minerals Limited | 67 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 Consolidated 2021 $ 2020 $ 21. Cash Flow Information (a) Reconciliation of cash flows from operating activities with loss from ordinary activities after tax: (7,361,110) (Loss) from ordinary activities after income tax 57,064 Depreciation 107,156 Depreciation on right of use assets 7,396 Write-off of property, plant and equipment 1,024,275 Share based payments 1,708,997 Share based payments included in consultancy expenses - Option payment to acquire Arakaka Other - Net exchange differences (127,737) Changes in assets and liabilities: - - provisions Net cash (outflows) from Operating Activities Increase/ (decrease) in operating receivables and prepayments (Decrease)/ increase in operating trade and other payables and (212,928) 499,909 (4,296,978) (1,631,079) 84,047 - - (8,517) 374,014 (596) (10,840) (65,557) 55,509 (1,203,019) (b) Non-cash investing and financing activities 2021 As announced to ASX on 28 April 2021 200,000 performance shares were issued to a consultant in accordance with their consultancy agreement for no consideration. Based on a deemed issue price of $0.10, an expense of $20,000 has been recognised in consultancy expenses. 2020 In accordance with the terms of the Option and Share Sale Agreement approved by Shareholders on 31 July 2019 Alicanto issued 30,000,000 ordinary fully paid shares equally to the shareholders of Zaffer Australia Pty Ltd, in accordance with the Agreement, escrowed for 12 months (refer Note 11 (a) (i)). (c) Changes in liabilities arising from financing activities Lease liabilities Hire-purchase liabilities Total liabilities from financing activities 1 July 2020 - - - New Leases 59,488 415,800 Cash Floors Other (non-cash) 30 June 2021 (11,586) (109,450) 2,281 9,357 50,183 315,707 475,288 (121,036) 11,638 365,890 Consolidated 2021 $ 2020 $ 22. Commitments The Group has the following exploration / tenure commitments and hire purchase commitments Exploration/tenure commitments Not longer than one year Longer than one year, but not longer than five years Longer than five years Total exploration commitments 1,877 559,147 1,736,573 2,297,597 673,346 2,326,897 - 3,000,243 Sweden As there is no minimum spend for exploration activities in Sweden the minimum commitments to be met are represented by annual rentals for the current tenement holding. Guyana Alicanto has entered a sale agreement with Virgin Gold Corporation (Virgin Gold) under which Alicanto will sell its Arakaka Gold Project in Guyana to Virgin Gold for cash and shares with a total value of up to C$4.75 million, as such no commitments have been recognised for Guyana tenement Option Payments. Alicanto Minerals Limited | 68 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 23. Segment Information (a) Description of segments Management has determined the operating segments based on the reports reviewed by the chief operating decision maker that are used to make strategic decisions. For the purposes of segment reporting the chief operating decision maker has been determined as the board of directors. The board monitors the entity primarily from a geographical perspective, and has identified three operating segments, being exploration for mineral reserves and the corporate/head office function in Australia. (b) Segment information provided to the board of directors The segment information provided to the board of directors for the reportable segments for the year ended 30 June 2020 is as follows: 2021 Total segment revenue Interest revenue Other income Depreciation expense including write-off Exploration expense Exploration Guyana $ Sweden $ Corporate $ Total $ - - - (52,396) (673,170) - - - - (2,574,352) 90,821 9,142 81,679 (119,220) - 90,821 9,142 81,679 (171,616) (3,247,522) Total segment (loss) before income tax (725,566) (2,574,352) (4,061,192) (7,361,110) Total segment assets Total segment liabilities 2020 Total segment revenue Equipment rental Interest revenue Depreciation and amortisation expense 208,805 479,297 6,797,324 7,435,426 7,812 446,642 643,523 1,097,977 - - - (73,438) - - - - 296 - 296 (10,609) 296 - 296 (84,047) Total segment (loss) before income tax (200,331) (721,224) (709,524) (1,631,079) Total segment assets Total segment liabilities 310,231 88,217 3,974,316 4,372,764 8,102 80,029 140,255 228,386 (c) Measurement of segment information All information presented in part (b) above is measured in a manner consistent with that in the financial statements. (d) Segment revenue No inter-segment sales occurred during the current financial year. The entity is domiciled in Australia. A detailed breakdown of revenue from continuing operations is as follows; Interest received - Australia Other income - Australia Total revenue from continuing operations (Note 3a) Consolidated 2021 $ 9,142 81,679 90,821 2020 $ 296 - 296 Alicanto Minerals Limited | 69 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 23. Segment Information (continued) Reconciliation of segment information (e) Total segment revenue, total segment profit/(loss) before income tax, total segment assets and total segment liabilities as presented in part (b) above, equal total entity revenue, total entity profit/(loss) before income tax, total entity assets and total entity liabilities respectively, as reported within the financial statements. 24. Events Occurring After the Balance Sheet Date On 2 August 2021 10,000,000 unlisted Options were issued to Mr Stephen Parsons (or his nominee) who is a corporate consultant with an exercise price of $0.20 and expiry date of 26 July 2026. On 2 August 2021 4,500,000 performance rights were issued as an incentive component of remuneration and to align interests with those of Shareholders, issued for no consideration and an expiry date of 2 August 2024. On 10 August 2021 1,000,000 performance rights were converted to fully paid ordinary shares on meeting the performance hurdles and having been approved for issue by the Board. There were no further events occurring after 30 June 2021. 25. Related Party Transactions (a) Parent entity The ultimate parent entity within the group is Alicanto Minerals Limited. (b) Subsidiaries Interests in subsidiaries are set out in note 28. (c) Key management personnel compensation Short-term employee benefits Post-employment benefits Share-based payments Total key management personnel compensation Consolidated 2021 $ 451,247 23,263 1,323,148 1,797,658 Details of remuneration disclosures are provided in the remuneration report on pages 28 to 39. (d) Transactions with Director and other key management personnel related parties The following transactions occurred with related parties: Recharges from director related entities: Recharge of costs by Bellevue Gold Limited Recharge of costs by Auteco Limited Recharge of costs by Venture Minerals Limited Recharge of costs by Blackstone Minerals Limited Consolidated 2021 $ 97,445 23,907 867 2,399 2020 $ 372,763 19,000 8,517 400,280 2020 $ - - 31,874 113,271 Purchases from director related entities Purchases for legal services from Murcia Pestell Hilliard Lawyers 3,517 8,754 Outstanding balances arising from recharges/purchases with Director Related Parties: Current payables 86,343 31,131 In addition to the above, Mr George and Mr Halliday are included in the Zaffer vendors that may benefit in the future from the net 2.5% smelter royalties agreed to and as disclosed as a contingent liability on page 74 in Note 27. (e) Terms and conditions of related party transactions Transactions between related parties are on commercial terms and conditions, no more favourable than those available to other parties unless otherwise stated. Alicanto Minerals Limited | 70 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 26. Share Based Payments (a) Fair value of listed options granted The fair value of listed options granted is calculated as the market value prevailing at the date on which the options are authorised for issue. No listed options were issued this year (2020: Nil). (b) Fair value of unlisted options granted 2021 During the year there were a total of 56,000,000 unlisted options issued to directors, management, consultants and advisors, with the weighted average fair value of the options granted during the year being $0.113 (2020: $0.000). The price was calculated using the Black-Scholes Option Pricing Model applying the following inputs Peer volatility has been the basis for determining expected share price volatility as it assumed that this is indicative of future tender, which may not eventuate. The life of the options is based on historical exercise patterns, which may not eventuate in the future. Total share-based payment transactions recognised during the year are as set out in (d) below. Details of other options movements and balances are set out in note 17. The unlisted options issued during the year are made up as follows are represented in the below table and as described below: Option Issues Grant Date Options Granted Exercise Price Life of Option Share Price on Grant Date Price Vol- atility Risk Free Interest Rate ID Number Number $ Years $ OPT5 OPT6 OPT7 OPT8 OPT9 OPT10 OPT10 6/8/20 6/8/20 6/8/20 6/8/20 6/8/20 4/11/20 6/8/20 37,000,000 $0.10 2,500,000 $0.10 2,500,000 $0.15 2,500,000 $0.20 2,500,000 $0.25 5,000,000 $0.10 4,000,000 $0.10 56,000,000 5 5 5 5 5 5 5 $0.080 $0.080 $0.080 $0.080 $0.080 $0.124 $0.080 % 85 85 85 85 85 85 85 % 0.39 0.39 0.39 0.39 0.39 0.26 0.39 Discount Factor for Lack of Market- ability % 0 0 0 0 0 0 0 Fair Value Per Option Fair Value Per Issues $ $ 0.0498 0.0498 0.0439 0.0395 0.0361 0.0863 0.049 1,843,055 124,531 109,681 98,811 90,337 431,586 199,249 2,897,250 • On 13 August 2020 37,000,000 unlisted options (‘OPT5’) were issued for services provided by management, consultants, advisors and incoming directors, with an exercise price of $0.10 and expiring on 13 August 2025; • On 24 November 2020 2,500,000 unlisted options (‘OPT6’) that were approved by shareholders at the General Meeting held on 4 November 2020 were issued, with an exercise price of $0.10 and expiring on 24 November 2025; • On 24 November 2020 2,500,000 unlisted options (‘OPT7’) that were approved by shareholders at the General Meeting held on 4 November 2020 were issued, with an exercise price of $0.15 and expiring on 24 November 2025; • On 24 November 2020 2,500,000 unlisted options (‘OPT8’) that were approved by shareholders at the General Meeting held on 4 November 2020 were issued, with an exercise price of $0.20 and expiring on 24 November 2025; • On 24 November 2020 2,500,000 unlisted options (‘OPT9’) that were approved by shareholders at the General Meeting held on 4 November 2020 were issued, with an exercise price of $0.25 and expiring on 24 November 2025; • On 24 November 2020 5,000,000 unlisted options (‘OPT10’) that were approved by shareholders at the General Meeting held on 4 November 2020 were issued, with an exercise price of $0.10 and expiring on 24 November 2025. • On 24 November 2020 4,000,000 unlisted options (‘OPT10’) that were approved by shareholders at the General Meeting held on 4 November 2020 were issued, with an exercise price of $0.10 and expiring on 24 November 2025. Alicanto Minerals Limited | 71 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 26. Share Based Payments (continued) 2020 No unlisted options were issued during the financial year ended 30 June 2020. (c) Fair value of performance rights issued 2021 The table below discloses the number of performance rights granted, vested or lapsed during the year. Each performance right converts to one ordinary share in the Company upon satisfaction of the performance conditions linked to the rights. The rights do not carry any other privileges. The fair value of the performance rights granted is determines based on the number of rights awarded multiplied by the share price of the Company on the date awarded. Management has then assessed the likelihood of the performance conditions being achieved. If the probability is judged to be greater than 50%, the total value is recognised on a straight line basis over the vesting period (in this case from the award date to the expiry date) within the relevant expense or equity account. If the probability if judged 50% or less, no amounts are recognised in the period. d e d r a w a . o n l a t o T e t a d d r a w A e t a d g n i t s e V e t a d y r i p x E f o e u l a v r i a F t h g i r e c n a m r o f r e p e t a d d r a w a e c i r p e s i c r e x E / d e s p a l . o N 3,000,000 4 Nov 2020 N/A 7 Aug 2022 0.124 Nil 1,000,000 4 Nov 2020 N/A 6 Aug 2021 0.124 Nil 1,500,000 4 Nov 2020 N/A 31 Dec 2022 0.124 Nil Mr Peter George ‘Class A’ Mr T Schwertfeger ‘Class B’ Mr Erik Lundstam ‘Class C’ d e t i e f r o f / d e l l e c n a c r a e y e h t g n i r u d d e t n a r G . o N r a e y e h t g n i r u d f o e u l a v l a t o T s t h g i r e c n a m r o f r e p e h t g n i r u d d e t n a r g 1 r a e y t n u o m A 1 2 0 2 n i d e s i n g o c e r g n i t s e v n o d e s a b d o i r e p - - - 3,000,000 372,000 92,081 1,000,000 124,000 107,316 1,500,000 186,000 37,499 5,500,000 - 5,500,000 682,000 236,896 2020 No performance rights were issued during the financial year ended 30 June 2020. Alicanto Minerals Limited | 72 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 26. Share Based Payments (continued) (c) Fair value of performance rights issued (continued) The following performance conditions are applicable to the rights awarded in the current year Each performance rights entitles the holder to one ordinary share in Alicanto upon satisfaction of the performance conditions linked to the rights during the relevant measurement period. The rights do not carry privileges. Class Number Vesting Condition A 3,000,000 The vesting of the Performance Rights is subject to the achievement of the following performance milestones, which is to be determined by the Board in its discretion: Grant Date 4 November 2020 (a) 1,000,000 Performance Rights will vest upon the Company achieving ounces at a grade greater than 1 g/t gold at the Company's Guyana projects on or before 7 August 2022; (b) 1,000,000 Performance Rights will vest upon a significant discovery by the Company in Sweden on or before 7 August 2022; and (c) 1,000,000 Performance Rights will vest subject to Mr George's continued engagement as a Director for a period of two years from the date of his appointment (i.e. until 7 August 2022). B 1,000,000 The vesting of the Performance Rights is subject to the achievement of the following performance milestones, which is to be determined by the Board in its discretion: 4 November 2020 (a) the provision of timely and accurate advice to the management team of the Company in order to allow the Company to keep in good standing all critical relationships and agreements with landholders, partners and government agencies in Guyana; and (b) the provision of geological advisory services to the management team of the Company to assisting in the development of a Inferred Mineral Resource (as defined in the JORC Code 2012) at the Arakaka Project to in excess of 1 Mt. C 1,500,000 The vesting of the Performance Rights is subject to the achievement of the following performance milestones, which is to be determined by the Board in its discretion: 4 November 2020 (a) 500,000 Performance Rights will vest upon a material acquisition in Scandinavia on or before 31 December 2022; (b) 500,000 Performance Rights will vest upon a significant discovery by the Company in Scandinavia on or before 31 December 2022; and (c) 500,000 Performance Rights will vest subject to your continued engagement as a Chief Geologist for a period of two years until the date until 31 December 2022. (d) Fair value of ordinary shares issued During the year, there were 200,000 fully paid ordinary shares were issued to a consultant in accordance with their consultancy agreement. Total fair value of the shares issued was $20,000. (2020: $Nil). Alicanto Minerals Limited | 73 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 26. Share Based Payments (continued) (e) Reconciliation of share-based payments Recognised in profit or loss Options issued to directors, employees and consultants Portion of expense recognised on Performance rights issued to directors Options issued to consultant’s and key management personnel recognised under Consultancy Expense Portion of expense recognised on Performance Rights issued to consultants recognised within Consultancy Expense Recognised in equity Options issued to Corporate Advisors (against capital raising costs) Total share-based payments 27. Contingent Assets / Liabilities (a) Contingent Liabilities Consolidated 2021 $ 932,194 92,081 1,024,275 1,544,181 144,816 1,688,997 423,360 3,136,632 2020 $ 8,517 - 8,517 - - - - - Guyana Alicanto, through its subsidiaries has entered into a number of agreements on the exploration tenure at the Arakaka Project and there are contingent liabilities that exist as follows; i) Purchase of alluvial rights should the company wish to progress to development which is to a maximum of US$2.2 million in cash. ii) Net smelter royalties of up to 2.5%. Sweden On 3 February 2020, Alicanto announced it had exercised its option to acquire 100% of shares in Zaffer (Australia) Pty Ltd (“Zaffer”) which owns the Oxberg and Naverberg VMS (Volcanogenic Massive Sulphide) Projects within the highly endowed Cu-Au-Zn-Pb-Ag Bergslagen Mining District of Southern Sweden , the transaction which was approved by shareholders on 31 July 2019. Pursuant to the Acquisition Agreement, Zaffer has agreed to enter into a royalty deed with the Zaffer Vendors in which it will pay the Zaffer Vendors a royalty on net smelter returns in respect of sales of products extracted from the Tenements. As such a contingent liability exists as follows: i) Net smelter royalties of 2.5% will be paid to the Zaffer Vendors for extracted zinc, lead, copper, gold, cobolt, nickel and iron that is able to be recovered from the Tenements and is capable of being sold or otherwise disposed of. There are no further contingent liabilities outstanding at the end of the year. (b) Contingent Assets During the year Alicanto entered into a Hire Purchase agreement to acquire a drill rig and associated equipment for use in Sweden to be used for its exploration activities (refer note 10). Upon Alicanto paying the total rental and paying all other moneys then due to the Owner under this agreement the property in and title to the Goods shall pass to Alicanto. There are no further contingent assets at the end of the year. Alicanto Minerals Limited | 74 Notes to the Consolidated Financial Statements For the year ended 30 June 2021 28. Subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 1(b): Name of entity Country of incorporation Alicanto Minerals WA Pty Ltd B StrataGold Guyana Inc. Calrissian (Guyana) Resources Inc. Manticore Resources (Guyana) Inc. Banner (Guyana) Inc.B Zaffer Australia Pty Ltd Zaffer Sweden AB A: The proportion of ownership interest is equal to the proportion of voting power held. B: Alicanto Minerals WA Pty Ltd, Banner (Guyana) Inc and Manticore Resources (Guyana) Inc. were dormant during the financial year. Australia Guyana Guyana Guyana Guyana Australia Sweden Class of shares Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary Equity HoldingA 2021 % 100 100 100 80 100 100 100 2020 % 100 100 100 80 100 100 100 29. Parent Entity Information (a) Assets Current assets Non-current assets Total assets (b) Liabilities Current liabilities Non-current liabilities Total liabilities (c) Equity Contributed equity Reserves Accumulated losses Total equity (d) Total comprehensive income/(loss) for the year (Loss) for the year Other comprehensive income for the year Total comprehensive (loss) for the year (e) Capital commitments Not longer than one year Longer than one year, but not longer than five years Longer than five years Total capital commitments (f) Guarantees The parent entity has not guaranteed any loans for any entity during the year. (g) Contingent Liabilities The parent entity has no contingent liabilities at the end of the financial year. 2021 $ 4,351,116 2,387,788 6,738,904 496,383 147,140 643,523 25,793,913 5,174,945 (24,873,477) 6,095,381 (7,519,522) - (7,519,522) 207,835 107,872 - 315,707 Company 2020 $ 2,453,744 1,535,674 3,989,418 140,255 - 140,255 19,164,805 2,038,313 (17,353,955) 3,849,163 (1,588,034) - (1,588,034) - - - - Alicanto Minerals Limited | 75 Director’s Declaration In the Directors’ opinion: (a) the financial statements and notes set out on pages 44 to 75 are in accordance with the Corporations Act 2001, including: (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and (ii) giving a true and fair view of the financial position as at 30 June 2021 and of its performance for the financial year ended on that date; and (b) the audited remuneration disclosures set out on pages 28 to 39 of the Directors’ report comply with section 300A of the Corporations Act 2001; and (c) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable; and (d) the financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board. The Directors have been given the declarations required by section 295A of the Corporations Act 2001. This declaration is made in accordance with a resolution of the Board of Directors. Raymond Shorrocks Non-Executive Chairperson Perth, Western Australia, 28 September 2021 Alicanto Minerals Limited | 76 PO Box 1908 West Perth WA 6872 Australia Level 2, 1 Walker Avenue West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ALICANTO MINERALS LIMITED Report on the Audit of the Financial Report Opinion We have audited the financial report of Alicanto Minerals Limited (the “Company”) and its subsidiaries (the “Group”), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters We have determined the following matters below to be key audit matters to be communicated in our report. Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Liability limited by a scheme approved under Professional Standards Legislation Stantons Is a member of the Russell Bedford International network of firms Key Audit Matters How the matters were addressed in the audit Measurement of Share-based Payments As disclosed in Note 26 to the consolidated financial statements, the Company granted 56,000,000 unlisted options and 5,500,000 performance rights to directors, management, consultants and advisors during the year. The total fair value recognised as share-based payments amounted to $3,136,632. The Company accounted for these options and performance rights in accordance AASB 2: Share-based Payment. Measurement of share-based payments was a key audit matter due to the complex and judgmental estimates used in determining the fair value of the share-based payments. Inter alia, our audit procedures included the following: i. ii. iii. iv. Reviewed the relevant agreements to obtain an understanding of the contractual nature and terms and conditions of the share-based payment arrangements; Reviewed management’s determination of the share-based the fair value of payments granted, the considering appropriateness of the valuation models used in assessing the valuation inputs focusing on the Group’s interpretation of grant date, vesting dates and vesting conditions; Assessed the allocation of the share- based payment expense over the relevant vesting period; and Assessed the adequacy of the disclosures in accordance with the applicable accounting standards. Issued Capital As disclosed in Note 16 to the consolidated financial statements, the Group’s issued capital as at 30 June 2021 amounted to $25,793,913. During the year 74,512,937 ordinary shares were issued resulting in an increase of issued capital of $6,629,108 net of capital raising costs. Issued capital is a key audit matter due to: Inter alia, our audit procedures included the following: i. Obtained an understanding of the underlying transactions which occurred; ii. Verified all issued capital movement to relevant ASX announcements; ▪ the significant amount of audit effort which was spent ensuring that issued capital was accounted for correctly and disclosed appropriately in the financial report; and ▪ the significant amount of funds received from the issue of capital during the year. iii. Vouched proceeds from capital raisings to bank statements and other supporting documentation; iv. Verified underlying capital raising costs and these costs were appropriately ensured recorded; v. Ensured consideration for services provided are measured in accordance with AASB: 2 Share-based Payment and agreed the related costs supporting and documentation; and valuation to vi. Assessed the adequacy of the related disclosures within the financial report. Other Information The directors are responsible for the other information. The other information comprises the information included in the Company’s annual report for the year ended 30 June 2021, 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 opinion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Company 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 Company or to cease operations, or has no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report. We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial report. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in Internal control that we identify during our audit. The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the consolidated financial report of the current period and are therefore key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report We have audited the Remuneration Report included in pages 28 to 39 of the directors’ report for the year ended 30 June 2021. 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 Opinion on the Remuneration Report In our opinion, the Remuneration Report of Alicanto Minerals Limited for the year ended 30 June 2021 complies with section 300A of the Corporations Act 2001. STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (An Authorised Audit Company) Martin Michalik Director West Perth, Western Australia 28 September 2021 Additional Shareholder Information (continued) Corporate Governance Statement In accordance with ASX Listing Rule 4.10.3 the company’s Corporate Governance Statement can be found on the company’s website, refer to https://www.alicantominerals.com.au/corporate/corporate-governance. Shareholding The distribution of members and their holdings of equity securities in the holding company as at 22 September 2021 were as follows: Number Held as at 22 September 2020 Class of Equity Securities Fully Paid Ordinary Shares 1- 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and above 43 98 195 565 300 1,201 Holders of less than a marketable parcel: 107, based on a closing price of $0.115 per share. Substantial Shareholders The names of the substantial shareholders listed on the company’s register as at 22 September 2021: Shareholder Symorgh Investments Pty Ltd J P Morgan Nominees Australia Pty Limited Percentage 7.5% 6.5% Number 24,726,058 22,506,706 Voting Rights In accordance with the holding company's Constitution, on a show of hands every member present in person or by proxy or attorney or duly authorised representative has one vote. On a poll, every member present in person or by proxy or attorney or duly authorised representative has one vote for every fully paid ordinary share held. Option holders and Performance Right holders are not entitled to vote. Options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Unlisted options Exercise price Expiry date $0.03 $0.065 $0.100 $0.100 $0.100 $0.150 $0.200 $0.250 $0.200 14 March 2024 17 June 2023 13 August 2025 24 November 2025 24 November 2025 24 November 2025 24 November 2025 24 November 2025 26 July 2026 Number of options 5,000,000 24,000,000 37,000,000 9,000,000 2,500,000 2,500,000 2,500,000 2,500,000 10,000,000 Number of holders 1 3 6 4 1 1 1 1 1 Number Held as at 22 September 2021 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and above Class of Equity Securities Options - - - - 13 13 Alicanto Minerals Limited | 82 Additional Shareholder Information (continued) Performance Rights Security Name Performance Rights – Class A Performance Rights – Class C Performance Rights – Class D Performance Rights – Class E Performance Rights – Class F Number Held as at 22 September 2021 1- 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and above Twenty Largest Shareholders Number of performance rights Number of holders 3,000,000 1,500,000 4,000,000 250,000 2,50,000 1 1 2 1 1 Class of Equity Securities Performance Rights - - - - 5 The names of the twenty largest ordinary fully paid shareholders as at 22 September 2021 are as follows: Shareholder Number % Held of J P MORGAN NOMINEES AUSTRALIA PTY LIMITED SYMORGH INVESTMENTS PTY LTD SYMORGH INVESTMENTS PTY LTD CAMPBELL KITCHENER HUME & ASSOCIATES PTY LTD MR HAMISH PETER HALLIDAY CHAFFERS GOLD PTY LTD LOKTOR HOLDINGS PTY LTD MR PHILIP JOHN CAWOOD TALEX INVESTMENTS PTY LTD MR NICHOLAS JOHN HILL & MISS RACHELLE SARAH TERZIC HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED VICEX HOLDINGS PROPRIETARY LIMITED MR ERIK LUNDSTAM BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD CITICORP NOMINEES PTY LIMITED MRS LENORE THERESA RADONJIC KOBIA HOLDINGS PTY LTD MR DAMON WILLIAM BRUCE DORMER PONDEROSA INVESTMENTS WA PTY LTD BLU BONE PTY LTD CS THIRD NOMINEES PTY LIMITED Totals: Top 21 holders of Ordinary Fully Paid Shares Total Remaining Holders Balance Issued Ordinary Capital 6.84% 4.33% 3.19% 3.04% 2.74% 2.57% 2.46% 2.31% 2.30% 2.25% 1.97% 1.85% 1.82% 1.76% 1.62% 1.52% 1.52% 1.30% 1.13% 1.06% 1.02% 22,506,706 14,229,392 6,000,000 10,000,000 9,000,000 8,448,128 8,075,847 7,600,000 7,548,000 7,400,000 6,466,285 6,075,214 6,000,000 5,780,770 5,335,047 5,000,000 5,000,000 4,273,333 3,717,949 3,500,000 3,341,462 155,298,133 48.59% 173,539,328 51.41% Alicanto Minerals Limited | 83 Additional Shareholder Information (continued) Unmarketable Parcels There were 107 holders with less than a marketable parcel of shares based on a closing price of $0.12. Restricted Securities There were no restricted securities Company Secretary Michael Naylor On-Market Buy Back The Company has not initiated an on-market buy back. Alicanto Minerals Limited | 84  Tenement Listing As at 22 September 2021 Project Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Location Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Tenement Y-33/000/04, PPMS/680/04 Y-33/001/04, PPMS/681/04 Y-31/000/04, PPMS/463/04 Y-31/001/04, PPMS/464/04 51/002/94, Ituni #1 51/003/94, Ituni #2 51/324/74, May 53/2014/731 53/2014/732 53/2014/733 P-33/MP/000/11 P-33/MP/001/11 P-33/MP/002/11 51/2005/235, Dennis #1 51/2005/236, Dennis #2 51/2005/237, Dennis #3 51/2005/238, Dennis #4 S-182/MP/000/2014 PPMS/631/07 P-39/MP/000/11 P-39/MP/001/11 P-39/MP/002/11 Y-1/MP/000/06, MP 91/2007 K-1004/MP/000/2017 MP085/2017 K-1004/MP/001/2017 MP086/2017 P-175/MP/000/2015 P-175/MP/001/2015 P-175/MP/002/2015 P-184/MP/000/2015 PL-09/2011, GS14: B-22 PL-10/2011, GS14: B-23 P-633/000, PPMS/1190/2015 P-633/001, PPMS/1191/2015 P-633/002, PPMS/1192/2015 P-633/003, PPMS/1193/2015 P-633/004, PPMS/1194/2015 P-633/005, PPMS/1195/2015 P-642/000, PPMS/123/2016 51/1989/104 51/1989/105 51/1989/106 53/2011/519 53/2011/520 53/2011/521 51/1983/038 51/1984/023 51/2010/311 51/2010/312 51/2010/313 51/1979/020 (No. 56812) 51/1988/058 (No. 84091) 51/1990/025 51/1990/026 53/2004/036 53/2004/037 53/2004/038 53/2008/004 53/2008/005 Interest as at 22 September 2021 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 80%1 80%1 80%1 80%1 80%1 80%1 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Alicanto Minerals Limited | 85  Tenement Listing As at 22 September 2021 Project Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Location Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Tenement 53/2008/006 53/2008/007 53/2008/008 53/2008/009 53/2008/010 53/2008/011 53/2011/518 51/1992/149 51/1992/150 51/2010/325 51/2010/326 51/2010/327 51/2010/329 51/2010/330 51/2010/331 51/2010/332 51/1982/028 51/1986/020 51/1986/021 51/1986/022 51/1986/023 51/1986/024 51/1986/043 51/1987/093 51/1987/094 51/1987/101 51/1987/102 51/1987/110 51/1988/104 51/1988/136 51/1989/259 51/1993/005 51/1993/006 51/1993/007 51/1993/008 51/1981/019 51/1981/020 51/1981/021 51/1981/022 51/1981/023 J-18/MP/000/12 J-18/MP/001/12 J-62/MP/002/13 J-62/MP/003/13 J-1007/MP/000/16 J-1007/MP/001/16 J-1007/MP/002/16 J-1007/MP/003/16 J-1007/MP/004/16 J-1007/MP/005/16 J-1007/MP/006/16 J-1007/MP/007/16 J-1007/MP/008/16 J-1007/MP/000/16 J-1007/MP/001/16 51/2004/184 51/2005/019 51/2004/185 Interest as at 22 September 2021 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Alicanto Minerals Limited | 86  Tenement Listing As at 22 September 2021 Project Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Arakaka Tassawini Tassawini Tassawini Tassawini Naverberg Oxberg Oxberg Dunderberget Sommarberget Uvbränna Björkberget Heden Harmsarvet Fågelberget Stensjön Vattholma Morgonrodnad Vegerbol Sala Sala Sala Sala Sala Sala Dunderberget Location Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Guyana Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Sweden Tenement 51/2005/020 51/2002/031 51/1994/118 51/2002/33 51/2002/34 51/2002/35 51/2002/36 51/1994/112 51/2002/32 51/1994/111 51/2001/09 51/2005/01 51/2005/02 51/2005/03 51/2005/04 51/2005/05 51/2005/06 51/2005/07 51/2005/026 Rose 8 51/2005/027 Rose 9 51/2002/27 Javid #1 Javid #2 V-04/MP/000, MP 47/98 V-5/MP/000, MP 23/01 V-5/MP/001, MP 24/01 V-5/MP/002, MP 25/01 Naverberg nr 1, 2,3,4,5,6 Oxberg 101 Oxberg 102 Dunderberget nr 1,2 Sommarberget nr 1 Uvbränna nr 1 Björkberget nr 1 Heden nr 2,3 Harmsarvet nr 1 Fågelberget nr 1 Stensjögruvan nr 101 Vattholma nr 1 Morgonrodnadsgruvan Vegerbol nr 101 Sala nr 101 Sala nr 102 Sala nr 103 Sala nr 104 Sala nr 105 Sala nr 106 Dunderberget nr 3 1 Interest held subject to Option Agreement announced 5 February 2016. Exploration License Prospecting License Notes E: PL: PPMS: MP: Mining Permit Prospecting License Medium Scale Interest as at 22 September 2021 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Alicanto Minerals Limited | 87 

Continue reading text version or see original annual report in PDF format above