Auric Mining Limited
Annual Report 2021

Plain-text annual report

Auric Mining Limited ACN 635 470 843 Annual Report 31 December 2021 Auric Mining Limited Annual Report 31 December 2021 Contents Corporate Directory Letter from the Chair Letter from the Managing Director Review of Activities Mineral Resources Annual Statement and Review Competent Persons Statements Estimation Governance Statement Schedule of Tenements Directors Report Auditor’s Independence Declaration Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements Directors’ Declaration Independent Auditors’ Report Corporate Governance Statement Additional ASX Information 2 3 4 5 14 15 16 17 18 29 30 31 32 33 34 59 60 64 65 Auric Mining Limited Annual Report 31 December 2021 Corporate Directory Directors Mr Steven Morris (Non-Executive Chair) Mr Mark English (Managing Director) Mr John Utley (Technical Director) Mr Stephen Strubel (Non-Executive Director) Company Secretary Mr Stephen Strubel (Resigned 1 February 2022) Miss Tamara Barr (Appointed 1 February 2022) Registered Office Share Register Solicitors Auditors c/- Danpalo Group Pty Ltd Suite 1, 1 Tully Road East Perth WA 6004 Email: info@auricmining.com.au Website: www.auricmining.com.au Computershare Investor Services Pty Limited 172 St Georges Terrace Perth WA 6004 Phone (within Australia): 1300 214 705 Phone (outside Australia): +61 3 9415 4036 Steinepreis Paganin Level 4, 50 Market Street Melbourne Vic 3000 William Buck Audit (Vic) Pty Ltd Level 20, 181 William Street Melbourne Vic 3000 Stock Exchange Auric Mining Limited Shares (AWJ) Auric Mining Limited Options (AWJO) are quoted on the Australian Securities Exchange (ASX) Page 2 Auric Mining Limited Annual Report 31 December 2021 Letter from the Chair Dear Fellow Shareholder Welcome to the 2021 Annual Report of our Company. Whilst this year has been one where as a Company, we have substantially expanded our tenement holdings and continued our exploration programs as planned, there is no doubt that it has been a disappointing year as far as the share price goes. When we put the Company together and listed on ASX our goal was to increase resource ounces and the quality of those ounces through both the drill bit and by corporate activity where it presented itself and was positive for us. We continue to hold that view and are pleased with our progress and expansion. As you’ll see in this Annual Report, we’ve not only increased our holdings in the Widgiemooltha Gold Project and the Spargoville Project but also our resource ounces along with a large increase in the Indicated resource component. We continue to search for opportunities to add quality prospective ground to our holdings too. The Jefferys Find deposit presents itself as a near term toll treatment opportunity amongst other options. We have progressed the development pathway significantly in the last 12 months. Over recent times we have considered opportunities for further expansion beyond our current project base. With gold at high prices historically but the market value of gold explorers not reflecting the value of the businesses we are increasingly looking at the potential to increase our mineral exploration activities to expand beyond gold. I’d like to take this opportunity to thank everyone at Auric for their efforts and hard work this year. Their commitment is much appreciated. I’d also like to thank my fellow Directors and pay special thanks to Stephen Strubel, who has been involved in Auric from the very beginning and who, due to a big increase in his overall workload in general, has informed us that regretfully he will not be standing for re-election at the AGM. In conclusion, I can comfort and assure shareholders that we share your frustration at the share price and market valuation as it stands right now and that we are fully committed to the success of Auric. Yours faithfully Steven Morris Non-Executive Chair 29 April 2022 Page 3 Auric Mining Limited Annual Report 31 December 2021 Letter from the Managing Director Dear Fellow Shareholder It is a pleasure to introduce Auric’s 2021 Annual Report to shareholders. Our long-term ambition from establishment of the Company was to become a successful gold producer in a Tier One area in Western Australia. I am pleased with our progress towards this aspiration, notwithstanding the 2021 year has been extremely difficult in Western Australia due to the Covid19 restrictions. We have been very active in our pursuit of first-class gold and other mineral exploration and development projects around Widgiemooltha in West Australia. We believe we have acquired excellent projects at highly competitive prices; the acquisition of the tenement package from Neometals Ltd in June 2021 being a highlight. We will continue to advance our ambition via exploration and by strategic acquisition. I thank my fellow directors and staff in helping Auric continuing to work towards our objectives and adding value to our projects. In particular, I wish to acknowledge the outstanding work that our technical team, John Utley and Nicholas Snow and consultants have achieved at Munda, as part of the Widgiemooltha Gold Project, since its acquisition. The Widgiemooltha Gold Project is currently the centrepiece of our three projects. Throughout 2021 and up to the date of this report we have concentrated our activities at the Munda Project and the Guest Prospect. We completed 3 drilling programs at these 2 locations throughout this period. At Munda we have increased our gold resources from 173,700 ounces to 198,700 ounces. However, by far the most important improvement is moving from nil resources in the Indicated category to 163,100 ounces. This represents approximately 82% of the Munda resource in the higher confidence category. At Jeffreys Find, we have worked diligently toward development. We are investigating various alternative strategies to monetize the Project and will soon be in a position to make informed decisions as to the best development pathway. At the Spargoville Project we are still endeavouring to get the largest tenement E15/1688 granted. The tenement was applied for in November 2018. Tenements E15/1688 and E15/1689 are important in the growth of the Company as we believe the Spargoville Project is prospective for gold and nickel. Since establishment of Auric Mining in August 2019, the business has progressed from concept to a gold development and minerals exploration company. With the continued drive of the Directors and management team we will realise our key ambition sooner than later. I thank you for your continuing support and look forward to you being a participant at our Annual General Meeting on 27 May 2022. Yours faithfully Mark English Managing Director 29 April 2022 Page 4 Auric Mining Limited Annual Report 31 December 2021 Review of Activities Overview Auric started the year with 6 tenements including the 2 key tenements hosting the Munda and Jeffreys Find gold deposits and by years end managed 27 tenements, of which 19 are granted, including 6 mining leases and 8 in application covering an area of 102km2. The Company listed on the ASX on 12 February 2021 and in June 2021, acquired the gold rights to a suite of tenements in the Widgiemooltha and Spargoville areas from Neometals Ltd. Widgie Nickel Ltd, the ‘spin-out’ from Neometals, retains the rights to all other minerals. Auric’s projects combine these tenements as well as Munda where rights to nickel and lithium minerals are held by Widgie Nickel Limited and Auric holds the rights to all other minerals including gold. At the Jeffreys Find and other Spargoville tenements, Auric owns all mineral rights. Figure 1. Auric Project Locations Page 5 Auric Mining Limited Annual Report 31 December 2021 Auric maintained a high level of activity through 2021, initiating an RC program at Munda the day after listing and with RC and air core drilling programs together with soil sampling programs undertaken at various times throughout the year. Munda The first RC program at Munda was completed in March with 27 holes drilled for 3664m. The holes were drilled to fill gaps in the Auric resources and to potentially extend resources in several positions particularly at the southwestern and northwestern margins of the deposit. Numerous mineralised intercepts were returned when defined at a 0.5g/t cut-off with some very high-grade intercepts including 13m @ 14.62g/t Au and 18m @ 3.69g/t Au, together with broad zones of mineralisation. A follow up RC program completed in August comprised 28 holes for 3,116. The program had a threefold objective: • • • Resource Definition - close spacing around successful holes drilled in the March program to the nominal 25m x 25m pattern required for resource estimation. Munda northeastern area - test a potentially new zone of gold mineralisation approximately 200m northeast of the current resource area. Ongoing validation work Results were consistent with the 1st round of drilling but more modest in grade with the better intercepts including 5m @ 4.72g/t Au and 4m @ 6.23g/t Au. They also provided critical inputs for new resource modelling which was undertaken later in the year. Figure 2. Munda drilling and geology The northeastern zone has yet to define potentially economic resources but broad zones of lower grade mineralisation have been intersected including 19m @ 0.72g/t Au and 19m @ 0.81g/t Au. Page 6 Auric Mining Limited Annual Report 31 December 2021 Better results from the two rounds of drilling at Munda are shown in Figure 2 with results from the 1st round of drilling highlighted in white and those from the second round highlighted in orange. All significant figures have been defined at a 0.5g/t cut-off. Auric initiated a new estimate of resources for Munda in December which was completed and reported in January 2022. The estimate was undertaken by FSS International Consultants (Australia) Pty Ltd (FSSI) and incorporated 39 RC holes drilled by Auric within the resource area. The new estimate represents a 14% increase in resources to 4.481M tonnes at 1.38g/t for 198,700oz Au at a 0.5gpt cut- off. Importantly, work done to qualify the historic data led to classification of 82% of the new estimate into the Indicated category. Table 1 presents gold Mineral Resource estimates for Munda for a range of gold cut-off grades. The figures are rounded to reflect the precision of the estimates and may include rounding errors. Au gpt Cut- off 0.2 0.3 0.4 0.5 0.6 0.8 1.0 Indicated Inferred Indicated + Inferred MTonnes Au gpt Koz MTonnes Au gpt Koz MTonnes Au gpt Koz 8.928 6.113 4.598 3.684 3.052 2.240 1.737 0.75 0.98 1.19 1.38 1.55 1.86 2.14 215.3 2.807 193.0 1.597 176.3 1.070 163.1 0.797 152.0 0.633 133.9 0.450 119.4 0.353 0.61 0.88 1.15 1.39 1.61 1.98 2.28 54.7 45.4 39.5 35.6 32.7 28.7 25.9 11.735 7.710 5.668 4.481 3.685 2.690 2.090 0.72 0.96 1.18 1.38 1.56 1.88 2.16 270.0 238.4 215.8 198.7 184.7 162.6 145.3 Table 1 January 2022 Munda gold deposit Mineral Resources estimate When combined with the estimate of resources for the Jeffreys Find gold deposit, the estimate of group resources at a 0.5gpt cut-off is 5.69M tonnes at 1.35gpt for 245,900oz Au. The increase in total resources and changes in resource classification are represented in Figure 3. This illustrates the now predominant component of ounces in the Indicated category. Further detail is provided in the Annual Mineral Resources Statement and Review in this report. Auric Combined Resources l d o G s e c n u O d e t a m i t s E l a t o T 300,000 250,000 200,000 150,000 100,000 50,000 0 Jul-20 Jan-22 Inferred Indicated Total Figure 3. Auric’s gold resources inventory at a 0.5gpt cut-off defined by resource category Page 7 Auric Mining Limited Annual Report 31 December 2021 Jeffreys Find Auric completed a 7 hole RC drilling program at Jeffreys Find. Six of the holes were drilled as twins of historic holes which have been used in the estimation of resources at Jeffreys Find, to confirm both the grade distribution and widths of the mineralised intervals and to provide material for metallurgical test work specific to toll mills in the Kalgoorlie and Coolgardie areas. The seventh hole (AJRC002) was drilled to infill a gap at the margin of the current resource model, confirming the continuity of mineralisation (Figure 4). Gold mineralisation is associated with a moderately southwest dipping Banded Iron Formation (BIF) unit. The BIF comprises magnetite-grunerite-chert and is bounded by sandstones, siltstones, cherts and limestones. Gold mineralisation was intersected predominantly within the BIF unit at depths correlating well with the original drilling. Figure 4. Jeffreys Find drilling and geology Significant assay intervals (in red) show some grade variation from the original intervals (in black) as illustrated in cross section in Figure 5 but are considered reasonable overall. Metallurgical consultancy, Upside Metallurgy, have designed a test work program that will assess the gold mineralisation at Jeffreys Find. Samples have been selected based on assay results and lithologies and composited for processing at ALS Metallurgy with results expected in early 2022. Page 8 Auric Mining Limited Annual Report 31 December 2021 Figure 5 Jeffreys Find drill hole cross section A-A Guest Prospect The Guest Prospect lies within E15/1583, one of the tenements acquired through the Neometals transaction in June 2021. There are several clusters of historic workings and drill programs were undertaken by Kalgoorlie Consolidated Gold Mines in 1984 and by Ramelius Resources 2006 along the workings (Figure 6). Figure 6. Guest Prospect Location Plan Page 9 Auric Mining Limited Annual Report 31 December 2021 In August, Auric drilled 4 RC holes to target historic workings and associated RAB and RC drilling in the south eastern part of the prospect (Guest Southeast) and 5 holes drilled on two traverses, beneath shallow RC holes in the north western part of the prospect (Guest Northwest) (Figure 7). Figure 7. Guest Prospect drill hole location plan Particularly encouraging results were returned from Guest Southeast where the 4 holes drilled in that area intersected a 20-30m wide basalt unit bounded by ultramafics, with quartz veining and trace to 3% pyrite recorded within the basalt over most 1m sample intervals. Gold mineralisation occurs which is clearly associated with the basalt unit such that significant gold assays at a 0.5g/t cut-off are recorded within the basalt in each of the 4 holes, including 3m @ 3.45g/t Au in AGRC001, 8m @ 3.95g/t Au in AGRC002, 10m @ 0.96g/t Au in AGRC003 and 2m @ 20.44g/t Au in AGRC004. Guest Southeast (henceforth ‘Guest’) will be a focus for further RC drilling in 2022. Regional Exploration The recognition of the Fugitive Prospect by earlier explorers can be attributed to auger sampling which is particularly effective in the calcareous soils in that area. Auric closed the spacing of historic soil auger traverses from 200m to 100m in EL15/1689, better defining several gold and nickel-in-soil anomalies in the southern half of the tenement. These anomalies will be tested with air core drilling (Figure 8). Page 10 Auric Mining Limited Annual Report 31 December 2021 Figure 8. Spargoville Project – soil auger gold anomalism including Auric infill sampling in E15/1689 A total of 198 air core holes for 7,769m were drilled during August and September and 524 soil samples were taken during that same period. The sampling traverses are represented in Figure 9. Page 11 Auric Mining Limited Annual Report 31 December 2021 Figure 9. Air core drill hole and soil sample traverse locations The results are encouraging, particularly around the northern margin of the Widgiemooltha Dome with both air core and soil sampling results defining anomalies that can be related to lithological contacts and fold axes. Bottom-of-hole gold anomalism in the northern area is outlined by a series of ellipses in Figure 10 which interpret most of the anomalism to relate to lithological contacts or to fold axes and to be located on or near the northern hinge of the dome. Traverse spacing is too great to confirm this early- stage interpretation and further air core drilling will be used to target and better define these anomalies. Page 12 Auric Mining Limited Annual Report 31 December 2021 Figure 10. Northern Widgiemooltha gold-in-air core anomalism Page 13 Auric Mining Limited Annual Report 31 December 2021 Mineral Resources Annual Statement and Review An updated estimate of gold resources for the Munda project has been completed with combined Indicated and Inferred Mineral Resources now totalling 4.48Mt @ 1.38g/t gold for 198,700 ounces of contained gold. This represents an increase of 14% in contained ounces when compared with the estimate of resources for Munda as reported to the end of December 2020. It also represents a substantial increase in confidence in the estimates with conversion of 100% in the Inferred category at the end of 2020 to 82% in the Indicated category and only 18% in the Inferred category. Resources estimated for Jeffreys Find were reported in the 2020 Annual Report and remain unchanged for the 2021 Annual Report. Munda and Jeffreys Find are in the same geographical area and the combined resources are also reported. The combined resources are 5.69Mt @ 1.35g/t for 245,900 ounces, representing an 11% increase over the 221,600 ounces in contained gold reported to December 2020. Deposit Category Tonnes (Million) Au g/t Au koz Munda Indicated Inferred Subtotal Indicated Jeffreys Find Inferred Subtotal Indicated Combined Inferred Total 3.68 0.80 4.48 0.91 0.30 1.21 4.59 1.10 5.69 1.38 1.39 1.38 1.26 1.08 1.22 1.26 1.41 1.35 163.1 35.6 198.7 36.9 10.3 47.2 200.0 45.9 245.9 Table 2. Gold Mineral Resource Estimates at 0.5 g/t cut off – 31 December 2021 NB. Figures are rounded to reflect the precision of the estimates and may include rounding discrepancies Details of the Munda Mineral Resources estimate are reported in the Company’s ASX announcement dated 28 January 2022 titled ‘Increase in Estimated Resources at Munda and Reclassification from Inferred to Indicated’ Details of the Jeffreys Find Mineral Resources estimate are reported in the Company’s ASX announcement dated 2 March 2021 and titled ‘Auric Mining Limited Resources Summary and Exploration Update’. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, that all material assumptions and technical parameters underpinning the estimates in the market announcements continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Page 14 Auric Mining Limited Annual Report 31 December 2021 Competent Persons Statements The information in the Annual Mineral Resources Annual Statement that relates to Mineral Resource estimation for the Munda Gold Project and Jeffreys Find Gold Project is based on, and fairly represents information and supporting documentation compiled by Mr Neil Schofield, a Competent Person who is a Member of the Australian Institute of Geoscientists and a full time employee of FSS International Consultants (Australia) Pty Ltd. Mr Schofield has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Schofield consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this announcement that relates to exploration results is based on and fairly represents information and supporting documentation compiled by Mr John Utley, who is a full-time employee of Auric Mining Limited. Mr Utley is a Competent Person and a member of the Australian Institute of Geoscientists. Mr Utley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Utley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Page 15 Auric Mining Limited Annual Report 31 December 2021 Estimation Governance Statement The Company ensures that all Mineral Resource estimates are subject to appropriate levels of governance and internal controls. All data collection is conducted to industry standards including appropriate quality control and data validation procedures. It is managed by Company employees and overseen by the Company’s Technical Director. Estimation of resources is undertaken by an independent consultant with many years of experience in the estimation of gold and other mineral resources. Mineral resources estimation utilised the method of Multiple Indicator Kriging (MIK) with block support adjustment reflecting selective open pit mining. Page 16 Auric Mining Limited Annual Report 31 December 2021 Schedule of Tenements Tenement Schedule as at 31 December 2021 Tenement Project Location Status Registered Holder Mineral Rights Widgiemooltha M15/74 Widgiemooltha WA M15/75 Widgiemooltha WA M15/87 Widgiemooltha WA M15/698 Widgiemooltha WA M15/699 Widgiemooltha WA E15/1505 Widgiemooltha WA E15/1507 Widgiemooltha WA E15/1553 Widgiemooltha WA E15/1576 Widgiemooltha WA E15/1583 Widgiemooltha WA P15/6092 Widgiemooltha WA P15/6387 Widgiemooltha WA P15/6570 Widgiemooltha WA P15/6612 Widgiemooltha WA Live Live Live Live Live Live Live Live Live Live Live Live Live Live Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Widgie Gold 100% All Minerals except Ni, Li Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights E15/1679 Widgiemooltha WA Pending Mt Edwards Lithium 100% Au Rights E15/1749 Widgiemooltha WA Pending Mt Edwards Lithium 100% Au Rights P15/6362 Widgiemooltha WA Pending Mt Edwards Lithium 100% Au Rights P15/6539 Widgiemooltha WA Pending Mt Edwards Lithium 100% Au Rights L15/414 Widgiemooltha WA Pending Widgie Gold Infrastructure Jeffreys Find M63/242 Jeffreys Find L63/97 Jeffreys Find Spargoville E15/1689 Spargoville P15/5905 Spargoville P15/5906 Spargoville P15/6408 Spargoville E15/1665 Spargoville E15/1688 Spargoville WA WA WA WA WA WA WA WA Table 3. Auric tenements at 31 December 2021 Live Jeffreys Find 100% All Minerals Pending Jeffreys Find Infrastructure Live Live Live Live Spargoville Minerals 100% All Minerals Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Mt Edwards Lithium 100% Au Rights Pending Mt Edwards Lithium 100% Au Rights Pending Mariner Mining 100% All Minerals Page 17 Auric Mining Limited Annual Report 31 December 2021 Directors Report General information The financial statements cover both Auric Mining Limited as an individual entity and the consolidated entity consisting of Auric Mining Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Auric Mining Limited’s functional and presentation currency. Auric Mining Limited is a listed public company limited by shares, incorporated and domiciled in Australia. The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the ‘consolidated entity’) consisting of Auric Mining Limited (referred to hereafter as “Auric”, “Company” or “parent entity”) and the entities it controlled at the end of, or during, the year ended 31 December 2021. Directors The following persons were Directors of Auric Mining Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Steven Morris – Non-Executive Chair Mark English – Managing Director John Utley – Executive Director Stephen Strubel – Non-Executive Director Particulars of each Director’s experience and qualifications are set out later in this report. Principal Activities The principal activities of the Group during the financial year were gold exploration and development. Operating and Financial Review Auric successfully listed on the ASX on 12 February 2021. The well-supported Initial Public Offering (IPO) raised $7.3M. The Company completed its first RC drilling program at Munda Deposit M15/87. The drilling program commenced on 13 February 2021 and was completed on 9 March 2021. The program was for 27 holes with 3,664 metres drilled. Refer to ASX announcements dated, 23 March 2021, 29 March 2021 and 9 April 2021. The Company completed the acquisition of the Neometals Ltd gold rights on the 10 June 2021. This acquisition consisted of acquiring the gold rights to 13 tenements and 8 applications at Widgiemooltha and Spargoville. The consideration paid was $250,000 cash plus the issue of 3,429,691 shares at $0.2041 per share totalling $700,000 and a 1% gross royalty on gold production from tenement E 15/1583 or subsequent tenements. Refer to ASX announcements dated, 19 April 2021 and 10 June 2021. The Company completed further RC drilling programs at both Munda and Guest later during the year. The Company completed a substantial Aircore drilling program over the NMT gold rights tenements during the year. Page 18 Auric Mining Limited Annual Report 31 December 2021 The loss for the consolidated entity after providing for income tax amounted to $1,103,126 (31 December 2020: loss of $750,871). Significant changes in the state of affairs There were no significant changes in the state of affairs of the consolidated entity during the financial year. Dividends There were no dividends paid, recommended or declared during the current financial year. Matters subsequent to the end of the financial year No matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years, other than detailed in these financial statements. Likely developments and expected results of operations Information on likely developments, future prospects and business strategies of the operations of the consolidated entity and the expected results of operations, not otherwise disclosed in this report, have not been included in this report because the Directors believe that the inclusion of such information would be likely to result in unreasonable prejudice to the consolidated entity. Indemnifying Officers or Auditor During the year, the Group maintained an insurance policy which indemnifies the directors and officers in respect of any liability incurred in connection with the performance of their duties as directors and officers of the Group to the extent permitted by the Corporations Act 2001. The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Group has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Environmental regulation The consolidated entity is not subject to any significant environmental regulation under Australian Commonwealth or State law as it is still in exploration stages. Proceedings on Behalf of the Company No person has applied for leave of a Court to bring proceedings against 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 those proceedings. The Company was not a party to any Court proceedings during the year. Non-audit Services There were no non-audit services provided during the financial year  by the auditor. Page 19 Auric Mining Limited Annual Report 31 December 2021 Options At the date of this report, the unissued ordinary shares of Auric Mining Limited under option are as follows: Grant Date Date of Expiry Exercise Price 29 January 2021 31 October 2023 29 January 2021 31 October 2023 29 January 2021 31 October 2023 $0.40 $0.40 $0.40 Number under Option 26,895,341 14,512,834 2,500,000 43,908,175 Option holders do not have any rights to participate in any issues of shares or other interests of the Company or any other entity. There have been no options granted over unissued shares or interests of any controlled entity within the Group since the end of the financial year. During the year ended 31 December 2021, no shares of Auric Mining Limited were issued on the exercise of options granted. No person entitled to exercise an option had or has any right by virtue of the option to participate in any share issue of any other body corporate. During the period ended 31 December 2020, 26,895,341 options were granted and issued to various parties. These options were cancelled on 17 November 2020 and were re-issued on 29 January 2021. Included in the 26,895,341 were 500,000 options issued as part of the cost of raising capital. These 500,000 options were brought to account in the 31 December 2020 financial statements in the option reserve. 14,512,834 options were issued as part of the capital raising and IPO. During the year ended 31 December 2021, 2,500,000 options were issued as part of the cost of raising capital. These options granted for services rendered during the year ended 31 December 2021 have been brought to account in this year’s financial statements in the option reserve. Page 20 Auric Mining Limited Annual Report 31 December 2021 Information on Directors and Company Secretary Name: Title: Qualifications: Experience and expertise: Other current ASX directorships: Directorships held in other listed entities in the last three years: Interests in shares: Interests in options: Name: Title: Qualifications: Experience and expertise: Steven Morris Non-Executive Chair Diploma of Financial Markets (FINSIA) Steven has over 25 years’ experience in financial markets. He was Head of Private Clients (Australia) for Patersons Securities, Managing Director of Intersuisse Ltd, Founder and Managing Director of Peloton Shareholder Services and held senior executive roles in the Little Group. Steven is Vice President of the Melbourne Football Club. Steven was a Non-Executive Director of De Grey Mining Ltd(“DEG”) from 2014 to 2019 and Chairman of ASX-listed Purifloh Ltd (“PO3”) from 2013 to 2019. None Steven was previously the Chair of Purifloh Ltd (ASX:PO3) until November 2019 and a Director of De Grey Mining Ltd (ASX:DEG) until July 2019 6,225,000 ordinary shares of Auric Mining Limited 2,312,500 options of Auric Mining Limited Mark English Managing Director Bachelor of Business (Curtin University) Fellow of the Institute of Chartered Accountants Australia and New Zealand Member of the Institute of Company Directors Mark is a Chartered Accountant and a member of the Australian Institute of Company Directors. Mark has 40 year career in the resources sector and corporate services. Mark has particular responsibility financial management, corporate development and acquisition opportunities. Mark was a founding Director of Bullion Minerals Ltd, that he managed for 10 years including completing IPO. for Company strategy, Other current ASX directorships: Directorships held in other listed entities in the last three years: Interests in shares: Interests in options: Mark is a Co-Founder, Director and Shareholder in the Moora Citrus group of companies, WA’s largest citrus producing orchard in operation for over 20 years. None None 6,681,767 ordinary shares of Auric Mining 2,515,834 options of Auric Mining Limited Page 21 Auric Mining Limited Annual Report 31 December 2021 Name: Title: Qualifications: Experience and expertise: Other current ASX directorships: Directorships held in other listed entities in the last three years: Interests in shares: Interests in options: John Utley Technical Director Master's of Science in Earth Sciences (University of Waikato, New Zealand) Member of the Australian Institute of Mining and Metallurgy Member of the Australian Institute of Geoscientists John has a 30 year career in mining and exploration, principally gold sector. John has worked in Australia, South America, Papua New Guinea and in Canada where he was Chief Geologist for Atlantic Gold Corporation, during exploration and development of the Touquoy Gold Mine and other gold deposits in Nova Scotia, prior to its acquisition by St Barbara. John previously worked with Plutonic Resources Ltd, where he was head of the exploration team at Darlot Gold Mine, during the discovery and development of the 2.3M ounce Centenary gold deposit. None None 6,420,000 ordinary shares of Auric Mining Limited 2,527,500 options of Auric Mining Limited Page 22 Auric Mining Limited Annual Report 31 December 2021 Name: Title: Company Secretary: Qualifications: Experience and expertise: Other current ASX directorships: Directorships held in other listed entities in the last three years: Interests in shares: Interests in options: Name: Title: Qualifications: Experience and expertise: Other current ASX directorships: Directorships held in other listed entities in the last three years: Interests in shares: Interests in options: Stephen Strubel Non-Executive Director Stephen was the Company Secretary from 19 August 2019 to 1 February 2022 Bachelor of Business in Banking and Finance/International Trade (Victoria University) Graduate Certificate in Business (Finance) (Victoria University) Master's in Business Administration (Australian Institute of Business) Fellow Governance Institute of Australia (FGIA) Stephen completed a Bachelor of Business in Banking and Finance/International Trade and Graduate Certificate in Business (Finance) from Victoria University and has an MBA from the Australian Institute of Business. He is a Fellow of the Governance Institute of Australia. Stephen has worked in financial markets in for approximately 10 years predominantly with Melbourne Patersons Securities. Stephen is a Non-Executive Director of Star Minerals Ltd (“SMS”), Executive Director of ChemX Materials Ltd ("CMX") and is Joint Company Secretary of the Environmental Group Ltd (“EGL”). A Non-Executive Director of Star Minerals Ltd (ASX:SMS) 2021 to date An Executive Director of ChemX Materials Ltd (ASX:CMX) 2022 to date None 6,165,100 ordinary shares of Auric Mining Limited 2,332,500 options of Auric Mining Limited Tamara Barr Company Secretary: Appointed: 1 February 2022 Certificate in Governance Practice (Governance Institute of Australia) Affiliated Member (GIA) Tamara is a highly experienced ASX Company Secretary with over 17 years’ experience practising as a Company Secretary and Corporate Governance Advisor across a variety of sectors and industries. She has worked predominantly in Australia, as well as in the UK and Europe, providing Company Secretarial advice and service to ASX listed, Public and NFP companies. Tamara is Managing Director of corporate services firm, Clear Sky Blue Pty Ltd were Tamara works closely with Boards to enhance their Corporate Governance procedures. None None 183,670 ordinary shares of Auric Mining Limited 135,334 options of Auric Mining Limited Page 23 Auric Mining Limited Annual Report 31 December 2021 Meetings of Directors The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 31 December 2021, and the number of meetings attended by each Director were: Steven Morris Mark English John Utley Stephen Strubel Full Board Attended 10 10 10 10 Held 10 10 10 10 Held: represents the number of meetings held during the time the Director held office. All other matters requiring approval by the Directors, have been approved by Circular Resolution. REMUNERATION REPORT (AUDITED) Remuneration Policy The remuneration policy of the company has been designed to align key management personnel (KMP) objectives with shareholder and business objectives by providing a fixed remuneration component. The Board of the company believes the remuneration policy to be appropriate and effective in its ability to attract and retain high-quality KMP to run and manage the Group, as well as create goal congruence between Directors, executives and shareholders. For the purposes of this report, KMP comprises executive and non-executive Directors of the Group, as follows: Steven Morris – Non-Executive Chair Mark English – Managing Director John Utley – Technical Director Stephen Strubel – Non-Executive Director The Board’s policy for determining the nature and amount of remuneration for KMP of the Group is based on the following: - The remuneration policy is developed and approved by the Board after professional advice, if required. - All KMP receive a base salary (which is based on factors such as length of service and experience), superannuation, fringe benefits and long service leave. - The Board reviews KMP packages annually by reference to the Group’s performance, executive performance and comparable information from industry sectors. Page 24 Auric Mining Limited Annual Report 31 December 2021 KMP receive, at a minimum, a superannuation guarantee contribution required by the government, which is currently 9.5% of the individual’s average weekly ordinary time earnings (AWOTE). Some individuals, however, have chosen to sacrifice part of their salary to increase payments towards superannuation. All remuneration paid to KMP is valued at the cost to the Group and expensed. The Board’s policy is to remunerate non-executive Directors at market rates for time, commitment and responsibilities. The Board determines payments to the non-executive Directors and reviews their remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. The current amount has been set at an amount not to exceed $250,000 per annum. The maximum aggregate amount of fees that can be paid to non-executive Directors is subject to approval by shareholders at general meeting. Options granted under the arrangement do not carry dividend or voting rights. Each option is entitled to be converted into one ordinary share once the interim or final financial report has been disclosed to the public and is measured using the Black Scholes methodology. Relationship between Remuneration Policy and Company Performance The remuneration policy has been tailored to increase goal congruence between shareholders, Directors and executives. The method has been applied to achieve this aim, the first being a performance-based bonus based on KPI’s. Employment Details of Members of Key Management Personnel The following table provides employment details of persons who were, during the financial year, members of KMP of the Group. The table also illustrates the proportion of remuneration that was performance and non-performance based. Page 25 Auric Mining Limited Annual Report 31 December 2021 Position Held as at 31 December 2021 and any Change During the Year Contract Details (Duration and Termination) Group KMP Steven Morris Non-executive Chair Consultancy agreement commenced 14 December 2020 for three years. The Company may terminate Consultancy the three months’ Agreement with The Consultant may notice. terminate Consultancy Agreement by giving the Company one months’ notice or immediately if Mr Morris ceases to be a Director of the Company. the Mark English Managing Director John Utley Technical Director Stephen Strubel Non-Executive Director in force Executive Services agreement commenced 14 December 2020 and continues till terminated. The Company may the Agreement with terminate three months’ notice and the payment of twelve months base salary. executive may terminate the Agreement by giving the Company three months’ notice and being paid twelve months base salary upon certain events. The in force Executive Services agreement commenced 14 December 2020 and continues till terminated. The Company may the Agreement with terminate three months’ notice and the payment of twelve months base salary. executive may terminate the Agreement by giving the Company three months’ notice and being paid twelve months base salary upon certain events. The in force Executive Services agreement commenced 14 December 2020 and continues till terminated. The Company may the Agreement with terminate three months’ notice and the payment of twelve months base salary. executive may terminate the Agreement by giving the Company three months’ notice and being paid twelve months base salary upon certain events. The 2021 2020 Proportions of Elements of Remuneration Related to Performance (Other than Options Issued) Proportions of Elements of Remuneratio n Not Related to Performance Proportions of Elements of Remuneration Related to Performance (Other than Options Issued) Proportions of Elements of Remuneration Not Related to Performance Shares/ Units Fixed Salary/Fees Non-salary Cash- based Incentives Shares/ Units Non-salary Cash- based Incentives Fixed Salary/Fees % % % % % % – – 100 – – 100 – – 100 49 – 51 – – 100 47 – 53 – – 100 – – 100 Page 26 Auric Mining Limited Annual Report 31 December 2021 The employment terms and conditions of all KMP are formalised in contracts of employment or consulting agreements. Remuneration Expense Details for the Year Ended 31 December 2021 The following table of benefits and payments represents the components of the current year remuneration expenses for each member of KMP and their related parties of the Group. Such amounts have been calculated in accordance with Australian Accounting Standards. Table of Benefits and Payments Due for the Year Ended 31 December 2021, including related parties Short-term benefits Post- employme nt Other long- term benefits Share-based payments Total Performance related Equity compensation 2021 Directors Salary & Fees $ Steven Morris 48,000 Mark English 241,449 John Utley 195,016 Stephen Strubel 66,863 Total 551,328 Bonus Annual leave Super $ - - - - - $ - 8,881 6,439 1,201 $ - 25,896 19,356 6,636 16,521 51,888 Long service leave $ - 4,334 3,501 1,200 9,035 Share rights Shares $ - - - - - $ - - - - - Loan funded shares $ - - - - - $ 48,000 280,560 224,312 75,900 628,772 % - - - - - % - - - - - Table of Benefits and Payments Due for the Period Ended 31 December 2020, including related parties Short-term benefits Post- employme nt Other long- term benefits Share-based payments Total Performance related Equity compensation Bonus Annual leave Super 2020 Directors Salary & Fees $ Steven Morris 18,500 $ - Mark English 124,132 120,000 John Utley 133,876 120,000 Stephen Strubel 19,029 - Total 295,537 240,000 $ - - - - - $ - 868 701 240 1,809 Long service leave $ - - - - - Share rights Shares $ - - - - - $ - - - - - Loan funded shares $ - - - - - $ 18,500 245,000 254,577 19,269 537,346 % - 48.98 47.14 - - % - - - - - Securities Received that Are Not Performance-related No members of KMP are entitled to receive securities that are not performance-based as part of their remuneration package. Cash Bonuses, Performance-related Bonuses and Share-based Payments Bonuses of $120,000 each were accrued for Mark English and John Utley for the successful IPO and ASX listing in December 2020 and were paid in cash during 31 December 2021 year. Page 27 Auric Mining Limited Annual Report 31 December 2021 KMP Shareholdings The number of ordinary shares in Auric Mining Limited held by each KMP and their related parties of the Group during the financial year and up to the date of this financial report is as follows: Ordinary shares Steven Morris Mark English John Utley Stephen Strubel Balance at the start of the year 6,125,000 6,191,767 6,260,000 6,125,100 24,701,867 Received as part of remuneration Additions - - - - - 100,000 710,000 160,000 40,000 790,000 Disposals/ other - 220,000 - - - Balance at the end of the year 6,225,000 6,681,767 6,420,000 6,165,100 25,491,867 The number of options in Auric Mining Ltd held by each KMP and their related parties of the Group during the financial year and up to the date of this financial report is as follows: Options over ordinary shares Steven Morris Mark English John Utley Stephen Strubel Balance at the start of the year Granted Exercised - - - - - 2,312,500 2,515,834 2,527,500 2,332,500 9,688,334 - - - - - Expired/ forfeited/ other Balance at the end of the year - - - - - 2,312,500 2,515,834 2,527,500 2,332,500 9,688,334 During the year ended 31 December 2021, the above options were issued to KMP and their related parties as a consequence of capital raisings and the IPO. There have been no KMP transactions involving equity instruments apart from those described in the tables above relating to options and shareholdings. Other Transactions with KMP and/or their Related Parties There were no other transactions conducted between the Group and KMP or their related parties, apart from those disclosed above relating to equity and compensation that were conducted other than in accordance with normal employee, customer or supplier relationships on terms no more favourable than those reasonably expected under arm’s length dealings with unrelated persons. This Directors’ Report, incorporating the remuneration report, is signed in accordance with a resolution of the Board of Directors: Director........................................................................................... Mark English Managing Director Perth WA 11 March 2022 Page 28 Auric Mining Limited Annual Report 31 December 2021 Auditor’s Independence Declaration [This page has intentionally been left blank for the insertion of the auditor's independence declaration] Page 29 Auric Mining Limited Annual Report 31 December 2021 Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Period ended 31 December 2021 Other Revenue Expenses Employee benefits expense Consultant, corporate advisory & publicity ASX & share registry Subscription, software & conference Director fees Accounting fees Audit fees Insurance Legal fees Depreciation and amortisation expense Rent Meeting expenses Other expenses Loss before income tax expense Income tax expense Note Consolidated 2021 $ 2020 $ 13,998 - (474,992) (197,915) (68,486) (53,105) (48,000) (46,375) (39,500) (32,930) (28,986) (16,933) (16,000) (13,870) (80,033) (537,346) (71,562) - - - (30,464) (32,800) - (43,820) (388) - - (34,491) (1,103,126) (750,871) 4 - - Loss after income tax expense for the year attributable to the owners of Auric Mining Limited (1,103,126) (750,871) Other comprehensive income for the year, net of tax - - Total comprehensive loss for the year attributable to the owners of Auric Mining Limited (1,103,126) (750,871) Basic earnings per share Diluted earnings per share Cents Cents 20 20 (1.32) (1.32) (3.91) (3.91) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes Page 30 Auric Mining Limited Annual Report 31 December 2021 Consolidated Statement of Financial Position As at 31 December 2021 Current assets Cash and cash equivalents Term Deposits Other receivables Other current assets Total current assets Non-current assets Property, plant and equipment Right of use asset Exploration and evaluation Other non-current assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Employee benefits Provisions Lease liability Total current liabilities Non-current liabilities Employee benefits Lease liability Total non-current liabilities Total liabilities Net assets Equity Issued capital Option reserve Accumulated losses Total equity Note Consolidated 2021 $ 2020 $ 5 6 7 8 545,007 2,020,000 35,850 68,057 2,668,914 176,418 - 54,098 17,812 248,328 29,569 134,363 6,529,640 8,878 6,702,450 3,062 - 3,830,614 - 3,833,676 9,371,364 4,082,004 85,532 92,135 - 20,653 198,320 1,149,553 - 248,000 - 1,397,553 9,035 116,133 125,168 - - - 323,488 1,397,553 9,047,876 2,684,451 9 10 10,244,807 657,066 (1,853,997) 3,098,256 337,066 (750,871) 9,047,876 2,684,451 The above consolidated statement of financial position should be read in conjunction with the accompanying notes Page 31 Auric Mining Limited Annual Report 31 December 2021 Consolidated Statement of Changes in Equity For the Period ended 31 December 2021 Note Issued Capital $ Option Reserve Accumulated Losses $ $ Total $ Balance at 1 January 2021 3,098,256 337,066 (750,871) 2,684,451 Loss for the year ended 31 December 2021 Total comprehensive loss for the year Transactions with owners, directly in equity Shares issued Transaction costs Option reserve - - 9 7,956,417 (809,866) - - - - 10 - 320,000 (1,103,126) (1,103,126) (1,103,126) (1,103,126) - - - 7,956,417 (809,866) 320,000 Balance at 31 December 2021 10,244,807 657,066 (1,853,997) 9,047,876 Balance at 12 August 2019 Loss for the period ended 31 December 2020 Total comprehensive loss for the period $ 30 - - Transactions with owners, directly in equity Shares issued Transaction costs Option reserve Balance at 31 December 2020 9 3,688,800 (590,574) 10 - 3,098,256 $ - - - - 337,066 337,066 $ $ 30 (750,871) (750,871) (750,871) (750,871) - - - 3,688,800 (590,574) 337,066 (750,871) 2,684,451 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes Page 32 Auric Mining Limited Annual Report 31 December 2021 Consolidated Statement of Cash Flows For the Period ended 31 December 2021 Cash flows from operating activities Note Consolidated 2021 $ 2020 $ Payments to suppliers and employees (inclusive of GST) (1,403,595) (352,713) Net cash used in operating activities 19 (1,403,595) (352,713) Cash flows from investing activities Payments for property, plant and equipment Payments for exploration and evaluation Payments for security deposits Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Capital raising costs Repayment of lease liabilities Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Note Consolidated 2021 $ 2020 $ (26,997) (2,802,827) (2,028,878) (3,450) (2,050,047) - (4,858,702) (2,053,497) 9 7,256,417 (615,738) (9,793) 2,988,830 (406,202) - 6,630,886 2,582,628 368,589 176,418 176,418 - Cash and cash equivalents at the end of the financial year 545,007 176,418 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes Page 33 Auric Mining Limited Annual Report 31 December 2021 Notes to the Consolidated Financial Statements For the Period ended 31 December 2021 The consolidated financial statements and notes represent those of Auric Mining Limited and Controlled Entities (the Consolidated Group or Group). The separate financial statements of the Parent Entity, Auric Mining Limited, have not been presented within this financial report as permitted by the Corporations Act 2001. The financial statements were authorised for issue on 11 March 2022 by the Directors of the Company. Note 1. Significant Accounting Policies The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting year. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Basis of Preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). Except for cash flow information, the financial statements have been prepared on an accrual basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about the transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated. Going Concern The consolidated financial statements have been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and the payment of liabilities in the ordinary course of business. The Group has incurred a net loss after tax for the year ended 31 December 2021 of $1,103,126, a net cash outflow from operations of $1,403,595 and net cash used in investing activities, excluding the term deposits of $2,829,824. As at 31 December 2021, the Group had net equity of $9,047,876 and cash and term deposits of $2,565,007. Page 34 Auric Mining Limited Annual Report 31 December 2021 There is a material uncertainty that the Group will be able to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business. The Group’s ability to continue as a going concern and pay its debts as and when they fall due is dependent upon the following: - - - the Group raising additional equity capital via any means available to it inclusive of, but not limited to, share placements, right issues, or joint venture arrangements in a timely manner in order to fund the ongoing exploration and operation activities of the Group; the Group delaying exploration activities if sufficient funds are not raised; or the Group selling some of the tenements if sufficient funds are not raised. Although it is not certain that these efforts will be successful, management has determined that the activities it will take are sufficient to mitigate the material uncertainty on the entity’s ability to continue as a going concern and be able to discharge its liabilities in the normal course of business. The Directors have reviewed the Business outlook and cash flow forecasts after taking into account the above matters and are of the view that the use of going concern basis accounting is appropriate as the Directors believe the Group will achieve the matters set out above and be able to pay its debts as and when they fall due. The financial statements are normally prepared on the assumption that the Group is a going concern and will continue in operation for the foreseeable future. Hence, it is assumed that the Group has neither the intention nor the need to liquidate or curtail materially the scale of its operations. If such an intention or need exists, the financial statements may have to be prepared on a different basis and, if so, the basis will be disclosed and the impacts quantified. a. Principles of Consolidation The consolidated financial statements incorporate all of the assets, liabilities and results of the Parent (Auric Mining Limited) and all of the subsidiaries (including any structured entities). 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 the subsidiaries is provided in Note 17. The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements 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 fully 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 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 comprehensive income. Business combinations Business combinations occur where an acquirer obtains control over one or more businesses. A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The business combination will be accounted for from the date that control is obtained, whereby the fair value of the identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exemptions). When measuring the consideration transferred in the business combination, any asset or liability resulting Page 35 Auric Mining Limited Annual Report 31 December 2021 from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability is remeasured in each reporting year to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date. All transaction costs incurred in relation to business combinations, other than those associated with the issue of a financial instrument, are recognised as expenses in profit or loss when incurred. The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase. b. Income Tax The income tax expense for the year comprises current income tax expense and deferred tax expense. Current income tax expense charged to profit or loss is the tax payable on taxable income for the current year. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority using tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting year. Deferred tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses. Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss or arising from a business combination. A deferred tax liability shall be recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from: (a) the initial recognition of goodwill; or (b) the initial recognition of an asset or liability in a transaction which: (i) is not a business combination; and (ii) at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss). Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled and their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. With respect to non-depreciable items of property, plant and equipment measured at fair value and items of investment property measured at fair value, the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of the asset will be recovered entirely through sale. When an investment property that is depreciable is held by the entity in a business model whose objective is to consume substantially all of the economic benefits embodied in the property through use over time (rather than through sale), the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of such property will be recovered entirely through use. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised, unless the deferred tax asset relating to temporary differences arises from the initial recognition of an asset or liability in a transaction that: – – is not a business combination; and at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss). Where temporary differences exist in relation to investments in subsidiaries, branches, associates and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future. Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where: (i) a legally enforceable right of set-off exists; and (ii) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous Page 36 Auric Mining Limited Annual Report 31 December 2021 realisation and settlement of the respective asset and liability will occur in future years in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled. c. Fair Value of Assets and Liabilities The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Australian Accounting Standard. Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e., unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e., the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting year (i.e., the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs). For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use. The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-based payment arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial instruments, by reference to observable market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective note to the financial statements. d. Plant and Equipment Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Plant and equipment Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised in profit or loss. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(g) for details of impairment). The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. The cost of fixed assets constructed within the Consolidated Group includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads. 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 Group and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss during the financial year in which they are incurred. Page 37 Auric Mining Limited Annual Report 31 December 2021 Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets, is depreciated on a straight-line basis over the asset’s useful life to the Consolidated Group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired year of the lease or the estimated useful lives of the improvements. The depreciation rates used for office equipment is 66.67% diminishing value. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting year. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in profit or loss in the year in which they arise. Gains shall not be classified as revenue. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings. e. Exploration and Evaluation Costs Exploration, evaluation and development expenditures incurred are capitalised in respect of each identifiable area of interest. These costs are only capitalised to the extent that they are expected to be recovered through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which the decision to abandon the area is made. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation to that area. Costs of site restoration are provided for over the life of the project from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with local laws and regulations and clauses of the permits. Such costs have been determined using estimates of future costs, current legal requirements and technology on an undiscounted basis. Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of abandoning the site. f. Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (i.e., trade date accounting is adopted). Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Trade receivables are initially measured at the transaction price if the trade receivables do not contain a Page 38 Auric Mining Limited Annual Report 31 December 2021 significant financing component or if the practical expedient was applied as specified in AASB 15: Revenue from Contracts with Customers Classification and subsequent measurement Financial liabilities Financial instruments are subsequently measured at: – – amortised cost; or fair value through profit or loss. A financial liability is measured at fair value through profit and loss if the financial liability is: – – – a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies; held for trading; or initially designated as at fair value through profit or loss. All other financial liabilities are subsequently measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the relevant year. The effective interest rate is the internal rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition. A financial liability is held for trading if: – – – it is incurred for the purpose of repurchasing or repaying in the near term; part of a portfolio where there is an actual pattern of short-term profit taking; or a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative that is in an effective hedging relationships). Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship are recognised in profit or loss. The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to other comprehensive income and are not subsequently reclassified to profit or loss. Instead, they are transferred to retained earnings upon derecognition of the financial liability. If taking the change in credit risk in other comprehensive income enlarges or creates an accounting mismatch, then these gains or losses should be taken to profit or loss rather than other comprehensive income. A financial liability cannot be reclassified. Financial assets Financial assets are subsequently measured at: – – – amortised cost; fair value through other comprehensive income; or fair value through profit or loss. Measurement is on the basis of two primary criteria: – – the contractual cash flow characteristics of the financial asset; and the business model for managing the financial assets. Page 39 Auric Mining Limited Annual Report 31 December 2021 A financial asset that meets the following conditions is subsequently measured at amortised cost: – – the financial asset is managed solely to collect contractual cash flows; and the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates. A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive income: – – the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates; the business model for managing the financial assets comprises both contractual cash flows collection and the selling of the financial asset. By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive income are subsequently measured at fair value through profit or loss. The Group initially designates a financial instrument as measured at fair value through profit or loss if: – – – it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as "accounting mismatch") that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases; it is in accordance with the documented risk management or investment strategy, and information about the groupings was documented appropriately, so that the performance of the financial liability that was part of a group of financial liabilities or financial assets can be managed and evaluated consistently on a fair value basis; it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise required by the contract. The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial classification and is irrevocable until the financial asset is derecognised. Equity instruments At initial recognition, as long as the equity instrument is not held for trading and not a contingent consideration recognised by an acquirer in a business combination to which AASB 3: Business Combinations applies, the Group may make an irrevocable election to measure any subsequent changes in fair value of the equity instruments in other comprehensive income, while the dividend revenue received on underlying equity instruments investment will still be recognised in profit or loss. Regular way purchases and sales of financial assets are recognised and derecognised at settlement date in accordance with the Group's accounting policy. Derecognition Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial position. Derecognition of financial liabilities A liability is derecognised when it is extinguished (i.e., when the obligation in the contract is discharged, cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability is treated as an extinguishment of the existing liability and recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. Page 40 Auric Mining Limited Annual Report 31 December 2021 Derecognition of financial assets A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred. All of the following criteria need to be satisfied for derecognition of financial asset: – – – the right to receive cash flows from the asset has expired or been transferred; all risk and rewards of ownership of the asset have been substantially transferred; and the Group no longer controls the asset (i.e., the Group has no practical ability to make a unilateral decision to sell the asset to a third party). On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. On derecognition of a debt instrument classified as at fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit or loss. On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is not reclassified to profit or loss but is transferred to retained earnings. Impairment The Group recognises a loss allowance for expected credit losses on: – – – – – financial assets that are measured at amortised cost or fair value through other comprehensive income; lease receivables; contract assets (e.g., amounts due from customers under construction contracts); loan commitments that are not measured at fair value through profit or loss; and financial guarantee contracts that are not measured at fair value through profit or loss. Loss allowance is not recognised for: – – financial assets measured at fair value through profit or loss; or equity instruments measured at fair value through other comprehensive income. Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument. A credit loss is the difference between all contractual cash flows that are due and all cash flows expected to be received, all discounted at the original effective interest rate of the financial instrument. The Group uses the following approaches to impairment, as applicable under AASB 9: Financial Instruments: – – – – the general approach the simplified approach the purchased or originated credit-impaired approach; and low credit risk operational simplification. General approach Under the general approach, at each reporting year, the Group assesses whether the financial instruments are credit-impaired, and if: Page 41 Auric Mining Limited Annual Report 31 December 2021 – – the credit risk of the financial instrument has increased significantly since initial recognition, the Group measures the loss allowance of the financial instruments at an amount equal to the lifetime expected credit losses; or there is no significant increase in credit risk since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. Simplified approach The simplified approach does not require tracking of changes in credit risk at every reporting year, but instead requires the recognition of lifetime expected credit loss at all times. This approach is applicable to: – – trade receivables or contract assets that result from transactions within the scope of AASB 15: Revenue from Contracts with Customers and which do not contain a significant financing component; and lease receivables. In measuring the expected credit loss, a provision matrix for trade receivables was used taking into consideration various data to get to an expected credit loss (i.e., diversity of customer base, appropriate groupings of historical loss experience, etc). Recognition of expected credit losses in financial statements At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or loss in the statement of profit or loss and other comprehensive income. The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset. Assets measured at fair value through other comprehensive income are recognised at fair value, with changes in fair value recognised in other comprehensive income. Amounts in relation to change in credit risk are transferred from other comprehensive income to profit or loss at every reporting year. For financial assets that are unrecognised (e.g., loan commitments yet to be drawn, financial guarantees), a provision for loss allowance is created in the statement of financial position to recognise the loss allowance. g. Impairment of Non-Financial Assets At the end of each reporting year, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include the consideration of external and internal sources of information, including dividends received from subsidiaries, associates or joint ventures deemed to be out of pre- acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g., in accordance with the revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible assets not yet available for use. When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is Page 42 Auric Mining Limited Annual Report 31 December 2021 recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. h. Employee Benefits Short-term employee benefits Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting year in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The Group’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as part of current trade and other payables in the statement of financial position. The Group’s obligations for employees’ annual leave and long service leave entitlements are recognised as provisions in the statement of financial position. Other long-term employee benefits Provision is made for employees’ long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the end of the annual reporting year in which the employees render the related service. Other long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at rates determined by reference to market yields at the end of the reporting year on government bonds that have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the years in which the changes occur. The Group’s obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except where the Group does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting year, in which case the obligations are presented as current provisions. Defined contribution superannuation benefits All employees of the Group other than those who receive defined benefit entitlements receive defined contribution superannuation entitlements, for which the Group pays the fixed superannuation guarantee contribution (currently 10% of the employee’s average ordinary salary) to the employee’s superannuation fund of choice. All contributions in respect of employees’ defined contribution entitlements are recognised as an expense when they become payable. The Group’s obligation with respect to employees’ defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting year. All obligations for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the Group’s statement of financial position. Termination benefits When applicable, the Group recognises a liability and expense for termination benefits at the earlier of: – – the date when the Group can no longer withdraw the offer for termination benefits; and when the Group recognises costs for restructuring pursuant to AASB 137: Provisions, Contingent Liabilities and Contingent Assets and the costs include termination benefits. In either case, unless the number of employees affected is known, the obligation for termination benefits is measured on the basis of the number of employees expected to be affected. Termination benefits that are expected to be settled wholly before 12 months after the annual reporting year in which the benefits are recognised are measured at the (undiscounted) amounts expected to be paid. All other termination Page 43 Auric Mining Limited Annual Report 31 December 2021 benefits are accounted for on the same basis as other long-term employee benefits. i. Provisions Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting year. j. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short- term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are reported within borrowings in current liabilities on the statement of financial position. k. Goods and Services Tax (GST) 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 ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). 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 ATO 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 ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. l. Critical Accounting Estimates and Judgements The Directors evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group. m. Key Judgements Exploration and evaluation expenditure The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not reached a stage that permits a reasonable assessment of the existence of reserves. While there are certain areas of interest from which no reserves have been extracted, the Directors are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded. Such capitalised expenditure is carried at the end of the reporting year at $6.33 million. n. Share-based Payment Transactions The consolidated entity measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting year but may impact profit or loss and equity. Page 44 Auric Mining Limited Annual Report 31 December 2021 o. Coronavirus (COVID-19) Pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the consolidated entity based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. p. Right-of-Use-Asset A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the  consolidated entity  expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The  consolidated entity  has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. q. Lease Liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. Page 45 Auric Mining Limited Annual Report 31 December 2021 Note 2. Parent Information The following information has been extracted from the books and records of the financial information of the Parent Entity set out below and has been prepared in accordance with Australian Accounting Standards. Statement of Financial Position ASSETS Current assets Non-current assets TOTAL ASSETS LIABILITIES Current liabilities Non-current liabilities TOTAL LIABILITIES NET EQUITY EQUITY Issued capital Accumulated losses Share option reserve TOTAL EQUITY 2021 $ 2020 $ 616,647 201,210 8,762,578 3,070,822 9,379,225 3,272,032 193,670 584,024 125,168 - 318,838 584,024 9,060,387 2,688,008 10,244,807 3,098,256 (1,841,486) (747,314) 657,066 337,066 9,060,387 2,688,008 The Parent entity has guaranteed the contingent asset and liabilities as detailed in note 13 and has also guaranteed the obligation to Neometals Limited as detailed in note 14. Note 3. Operating segments Identification of reportable operating segments For management’s purposes, the Group is organised into one main operating segment, which involves the exploration and development of minerals in Australia. All of the Group’s activities are interrelated, and discrete financial information is reported to the Board as a single segment. Accordingly, all significant decisions are based upon analysis of the Group as one segment. The financial results from this segment are equivalent to the financial statements of the Group as a whole. Page 46 Auric Mining Limited Annual Report 31 December 2021 Note 4. Income tax Numerical reconciliation of income tax benefit and tax at the statutory rate Loss before income tax expense Tax at the statutory tax rate of 26% Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Non-allowable items Other items Carry forward tax losses not recognised DTA/DTL not recognised Income tax benefit Consolidated 2021 $ 2020 $ (1,103,126) (750,871) (286,813) (206,490) 37,929 (176,342) (108,482) 533,708 - 97,872 (6,124) - 114,741 - Accounting policy for income tax The income tax expense or benefit for the year is the tax payable on that year's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior years, where applicable. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. ● 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. The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Page 47 Auric Mining Limited Annual Report 31 December 2021 Note 5. Current assets - Term Deposits Term Deposit 1 Term Deposit 2 Term Deposit 3 Term deposits 1 & 2 matures on 16 April 2022. Term deposit 3 matures on 18 August 2022. Note 6. Non-current assets - exploration and evaluation Exploration and evaluation - at cost Consolidated 2021 $ 2020 $ 1,000,000 1,000,000 20,000 2,020,000 - - Consolidated 2021 $ 2020 $ 6,529,640 3,830,614 Reconciliations Reconciliations of the values at the beginning and end of the current and previous financial year are set out below: Opening balance Expenditure during the year Closing balance Consolidated 2021 $ 2020 $ 3,830,614 2,699,026 - 3,830,614 6,529,640 3,830,614 All exploration and evaluation expenditure including general activities, geological, project generation, and drilling costs are capitalised as incurred. Page 48 Auric Mining Limited Annual Report 31 December 2021 Note 7. Current liabilities - trade and other payables Trade and other payables Accruals Deferred consideration - Munda Project Royalty consideration - Jeffreys Find Project Note 8. Current liabilities - Employee Benefits Annual leave Superannuation payable PAYG payable Note 9. Equity - Issued capital At incorporation Share issued Convertible Note conversion Shares issued Shares raised Shares raised Shares issued for acquisition of Jeffreys Find tenement Shares issued for acquisition of Spargoville tenements Capital raising costs Closing balance as at 31 December 2020 Shared issued via IPO Shares issued to NMT re Gold Rights Capital raising costs Consolidated 2021 $ 2020 $ 26,402 59,130 - - 279,707 69,846 650,000 150,000 85,532 1,149,553 Consolidated 2021 $ 2020 $ 28,742 5,575 57,818 92,135 - - - - Consolidated 2021 Shares 2020 Shares 2021 $ 2020 $ - - - - - - - - 300 9,000,000 27,750,000 500,000 1,161,999 17,950,001 3,666,667 600,000 - - - - - - - - 30 9,000 111,000 2,000 174,300 2,692,500 550,000 150,000 (590,574) - - - 60,628,967 29,025,667 3,429,691 - - - - - 3,098,256 7,256,417 700,000 (809,866) - Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital. 93,084,325 60,628,967 10,244,807 3,098,256 Page 49 Auric Mining Limited Annual Report 31 December 2021 On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. Share buy-back There is no current on-market share buy-back. Capital risk management The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital. Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents. In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current Company's share price at the time of the investment. The capital risk management policy remains unchanged from the 31 December 2020 Annual Report. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the proceeds. Note 10. Equity - Option Reserve The 2,500,000 options issued for the capital raising services had the following assumptions: The options were valued by the Directors using the Black Scholes method. The assumptions used are as follows: Stock price $0.25 Volatility 97% Exercise price $0.40 Risk free rate 1.5% Grant date 29/01/2021 Fair value per option $0.128 Expiry date 31/10/2023 Option reserve 320,000 Opening balance Value of options issued during the year Closing balance Consolidated 2021 $ 2020 $ 337,066 320,000 - 337,066 657,066 337,066 Page 50 Auric Mining Limited Annual Report 31 December 2021 At incorporation Issued to promoters Issued for seed capital Granted for acquisition of tenements Issued for capital raising services Subtotal Options cancelled Closing balance as at 31 December 2020 Options reissued 29 January 2021 Issued as per IPO Issued for capital raising services 2021 No. Consolidated 2020 No. 2021 $ - 14,125,000 10,137,008 2,133,333 500,000 26,895,341 (26,895,341) - 26,895,341 14,512,834 2,500,000 337,066 - - 320,000 2020 $ - - - - 337,066 337,066 - The weighted average exercise price is $0.40 per option, the same in prior year and the current year. 43,908,175 - 657,066 337,066 The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.8 years (31 December 2020: 2.8 years) Note 11. Key management personnel disclosures Refer to the remuneration report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Group’s Key Management Personnel (KMP) or their related parties for the period ended 31 December 2021. The total of remuneration paid to KMP of the Company and the Group during the period are as follows: Short-term employee benefits Post-employment benefits Long-term employee benefits Total KMP compensation Short-term benefits Consolidated 2021 $ 2020 $ 567,849 51,888 9,035 628,772 535,537 1,809 - 537,346 These amounts include fees and benefits paid to non-executive Directors or their related parties as well as all salary and paid leave benefits awarded to executive Directors and other KMP. Post-employment benefits These amounts are the current-year’s estimated costs of providing for the Group’s defined benefits scheme post-retirement, superannuation contributions made during the period. Other long-term benefits These amounts represent long service leave benefits accruing during the period and deferred bonus payments. Page 51 Auric Mining Limited Annual Report 31 December 2021 Note 12. Auditor’s Remuneration During the financial year the following fees were paid or payable for services provided by William Buck, the auditor of the Company: Audit services - William Buck Audit or review of the financial statements Other services - William Buck Accounts preparation services Investigating Accountants Report Consolidated 2021 $ 2020 $ 39,500 30,000 - - - 2,800 11,000 13,800 39,500 43,800 Note 13. Contingent Assets and Liabilities As part of the terms and conditions of the acquisition of Spargoville Project, the Group has contingent liabilities amounting to $150,000 worth of Shares to be issued, subject to performance milestones being achieved, at a deemed issue price per share equal to the VWAP of shares calculated over the 5 trading days immediately preceding the date of issue of the shares. As part of the acquisition of the Spargoville Project, the Group has taken on the obligation to Breakaway Resources Pty Ltd to a 1.5% net smelter royalty in respect of production from the Tenements. As part of the acquisition of the Neometals gold rights, the Group has taken on the obligation to Neometals Ltd to a 1% gross royalty in respect of gold production from the Tenement E15/1583. Note 14. Commitments Tenement commitments: 0-1 year Tenement commitments: 1-5 years Tenement commitments: 5 years plus Consolidated 2021 $ 2020 $ 513,900 529,500 86,800 74,000 343,000 104,000 1,130,200 521,000 As part of the acquisition of the Neometals gold rights, the Group has taken on the obligation to spend $450,000 on the tenements in year 1 for settlement date and further $450,000 in the second year. Page 52 Auric Mining Limited Annual Report 31 December 2021 Note 15. Related party transactions a. Related Parties The Group's main related parties are related to Key Management Personnel, identified as follows: Steven Morris Mark English John Utley Stephen Strubel b. Transactions with related parties Transactions between related parties are on normal commercial terms and conditions no more favourable than those available with key management personnel have been disclosed in the Remuneration Report. to other parties unless otherwise transactions stated. All c. Amounts paid/ payable to related parties The following transactions occurred with related parties: LBL (WA) Pty Ltd, entity related to Mark English for services rendered 140 Holdings Pty Ltd, entity related to Mark English for services rendered Teralba Nominees VIC Pty Ltd, entity related to Stephen Strubel for services rendered Targo Holdings Pty Ltd, entity related to Steven Morris for services rendered Consolidated 2021 $ - - - 48,000 2020 $ 60,000 55,000 16,500 18,500 Receivable from and payable to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting date. Loans to/from related parties There were no loans to or from related parties at the current and previous reporting date. Terms and conditions All transactions were made on normal commercial terms and conditions and at market rates. Note 16. Capital Commitments The Company has entered into a contract for the purchase of a Toyota Hilux for an amount up to $55,000. Subsequent to the end of the financial year, the Company has submitted an offer to purchase a Crown Lease Property at Widgiemooltha. Page 53 Auric Mining Limited Annual Report 31 December 2021 Note 17. Interests in Subsidiaries The subsidiaries listed below have share capital consisting solely of ordinary shares which are held directly by the Group. The proportion of ownership interests held equals the voting rights held by the Group. Each subsidiary’s principal place of business is also its country of incorporation. Name Widgie Gold Pty Ltd Spargoville Minerals Pty Ltd Jeffreys Find Pty Ltd Principal place of business / Country of incorporation Australia Australia Australia Ownership interest 2020 2021 % % 100% 100% 100% 100% 100% 100% Subsidiary financial statements used in the preparation of these consolidated financial statements have also been prepared as at the same reporting date as the Group’s financial statements.\ Note 18. Events after the reporting year No matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years, other than, a new subsidiary company was incorporated subsequent to the end of the financial year. The subsidiary is currently dormant. Note 19. Cash flow information Reconciliation of loss after income tax to net cash used in operating activities Loss after income tax expense for the year (1,103,126) (750,871) Consolidated 2021 $ 2020 $ Change in operating assets and liabilities: (Decrease)/Increase in trade and other payables (Decrease)/Increase in other provisions Depreciation and amortisation (Increase) in receivables and other current assets Net cash used in operating activities Note 20. Earnings per share (75,182) (210,223) 16,933 (31,997) 221,680 248,000 388 (71,910) (1,403,595) (352,713) Consolidated 2021 $ 2020 $ Loss after income tax attributable to the owners of Auric Mining Limited (1,103,126) (750,871) Basic loss per share Diluted loss per share Cents Cents (1.32) (1.32) (3.91) (3.91) Page 54 Auric Mining Limited Annual Report 31 December 2021 No. No. Weighted average number of ordinary shares used in calculating basic earnings per share 83,599,875 19,225,357 Weighted average number of ordinary shares used in calculating diluted earnings per share 83,599,875 19,225,357 Diluted loss per share has not been disclosed as the impact from options is anti-dilutive, because the exercise price of the option is higher than the average issued price. Accounting policy for earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the loss attributable to the owners of Auric Mining Limited, 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 financial year. 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 income tax effect of interest and other financing costs associated with 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. Note 21. Financial Risk Management The Group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable. The totals Instruments as detailed in the accounting policies to these financial statements, are as follows: instruments, measured in accordance with AASB 9: Financial for each category of financial Financial assets Financial assets at amortised cost Cash and cash equivalents Other receivables Term deposits Total financial assets Financial liabilities Financial liabilities at amortised cost Other payables Consolidated 2021 $ 2020 $ 545,007 35,850 2,020,000 176,418 54,098 - 2,600,857 230,516 Consolidated 2021 2020 323,488 1,397,553 Page 55 Auric Mining Limited Annual Report 31 December 2021 Financial Risk Management Policies The Board monitors the Group’s financial risk management policies and exposures and approves financial transactions within the scope of its authority. It also reviews the effectiveness of internal controls relating to commodity price risk, counterparty credit risk, foreign currency risk, liquidity risk and interest rate risk. The overall risk management strategy seeks to assist the Consolidated Group in meeting its financial targets, while minimising potential adverse effects on financial performance. Its functions include the review of the use of credit risk policies and future cash flow requirements. Specific financial risk exposures and management The main risks the Group is exposed to through its financial instruments are credit risk and liquidity risk. There are no substantive changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives, policies and processes for managing or measuring the risks. a. Credit risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group. Due to the current nature of the Group, being an exploration entity, the Group is not exposed to material credit risk. b. Liquidity risk Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate liquidity risk management framework for the management of the Group's short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Typically, the Group ensures that it has sufficient cash to meet expected operational expenses for a year of 60 days. The financial liabilities of the Group include trade and other payables as disclosed in the statement of financial position. All trade and other payables are non-interest bearing and due within 30 days of the reporting date. The following table reflects an undiscounted contractual maturity analysis for financial assets and financial liabilities. Page 56 Auric Mining Limited Annual Report 31 December 2021 Financial liability and financial asset maturity analysis: Consolidated Group 2021 Within 1 Year 1 to 5 Years $ $ Total $ Financial liabilities due for payment Other payables Employee benefits Lease liability Total expected outflows Financial assets – cash flows realisable Cash and cash equivalents Other receivables Term Deposit Rental security bond Total anticipated inflows Net inflow on financial instruments (85,532) (92,135) (20,653) (198,320) 545,007 103,907 2,020,000 - 2,668,914 2,470,594 - (9,035) (116,133) (125,168) - - - 8,878 8,878 (116,290) Consolidated Group 2020 Within 1 Year 1 to 5 Years $ $ Financial liabilities due for payment Other payables Total expected outflows Financial assets – cash flows realisable Cash and cash equivalents Other receivables Total anticipated inflows (1,397,553) (1,397,553) 176,418 54,098 230,516 Net (outflow) on financial instruments (1,167,037) - - - - - (85,532) (101,170) (136,786) (323,488) 545,007 103,907 2,020,000 8,878 2,677,792 2,354,304 Total $ (1,397,553) (1,397,553) 176,418 54,098 230,516 (1,167,037) The above liquidity risk shortfall as at 31 December 2020 has been eliminated by the IPO and capital raising of $7.26 million in February 2021. Fair value estimation The fair values of financial assets and financial liabilities are presented above and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Financial instruments whose carrying value is equivalent to fair value due to their nature include:  Cash and cash equivalents;  Other receivables; and  Other payables Page 57 Auric Mining Limited Annual Report 31 December 2021 Note 22. Company Details The registered office and principal place of business of the Company is: Auric Mining Limited Level 1, 1 Tully Road East Perth WA 6004 Page 58 Auric Mining Limited Annual Report 31 December 2021 Directors’ Declaration In the Directors' opinion: ● ● ● ● the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 1 to the financial statements; the attached financial statements and notes give a true and fair view of the Company's and consolidated entity's financial position as at 31 December 2021 and of their performance for the financial year ended on that date; and As disclosed in Note 1 of the financial statements, in the Directors’ opinion there are reasonable grounds to believe that the Company and the consolidated entity will be able to pay its debts as and when they become due and payable. The Directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the Directors ___________________________ Mark English Managing Director 11 March 2022 Page 59 Auric Mining Limited Annual Report 31 December 2021 Independent Auditors’ Report [This page has intentionally been left blank for the insertion of page one of the independent auditor's report] Page 60 Auric Mining Limited Annual Report 31 December 2021 [This page has intentionally been left blank for the insertion of page two of the independent auditor's report] Page 61 Auric Mining Limited Annual Report 31 December 2021 [This page has intentionally been left blank for the insertion of page three of the independent auditor's report] Page 62 Auric Mining Limited Annual Report 31 December 2021 [This page has intentionally been left blank for the insertion of page four of the independent auditor's report] Page 63 Auric Mining Limited Annual Report 31 December 2021 Corporate Governance Statement In recognising the need for high standards of corporate behaviour and accountability, the Directors of the Company support the principles of sound corporate governance. The Board recognises the recommendations of the ASX Corporate Governance Council and considers that the Company is in compliance with the 4th Edition Principles & Recommendations to the extent reasonable in respect of the Company’s circumstances, which are of importance or relevant to the commercial operation of developing listed resources companies. The Company’s Corporate Governance Statement is located on the Company’s website at www.auricmining.com.au. Page 64 Auric Mining Limited Annual Report 31 December 2021 Additional ASX Information The shareholder information set out below was applicable as at 22 April 2022. Distribution of equitable securities Analysis of number of equitable security holders by size of holding: Ordinary shares Options over ordinary shares % of total % of total Number shares Number options of holders issued of holders issued 11 65 136 320 115 - 0.24 1.18 15.65 82.93 - 128 74 210 61 - 1.24 1.53 23.81 73.42 1 to 1,000 1,001 to 5,000 5,001 to 10,000 10,001 to 100,000 100,001 and over Total 647 100.00 473 100.00 Holding less than a marketable parcel 87 - 311 - Page 65 Auric Mining Limited Annual Report 31 December 2021 Equity security holders Twenty largest quoted equity security holders The names of the twenty largest security holders of equity securities are listed below: Ordinary shares % of total shares Number held issued 7,200,000 7.73 1 R J & A INVESTMENTS PTY LTD 2 ANAMORPH PTY LTD 3 4 5 6 FAIRCHILD CAPITAL AUSTRALIA PTY LTD 13 NOMINEES PTY LTD SRS HGS PTY LTD STEVEN JOHN MORRIS 7 MINCOR RESOURCES NL 8 NEOMETALS INVESTMENTS PTY LTD 9 CS THIRD NOMINEES PTY LIMITED 10 TARGO HOLDINGS PTY LTD 11 140 HOLDINGS PTY LTD 12 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 13 CITICORP NOMINEES PTY LIMITED 14 THREE ZEBRAS PTY LTD 6,420,000 6,125,100 5,181,667 5,125,100 3,912,500 3,666,667 3,429,691 2,896,396 2,312,500 1,500,100 1,355,999 1,342,142 1,333,333 15 MR STEPHEN STRUBEL + MR BRIAN STRUBEL 1,040,000 16 ESTRELLA RESOURCES LIMITED 17 CAM NOMINEES PTY LTD 18 LYTTON NOMINEES PTY LTD 19 WHIMPLECREEK PTY LTD 20 GREENBACK GLOBAL PTY LTD 856,400 680,000 666,667 666,667 666,666 6.90 6.58 5.57 5.51 4.20 3.94 3.68 3.11 2.48 1.61 1.46 1.44 1.43 1.12 0.92 0.73 0.72 0.72 0.72 Total Top 20 Others Total 56,977,595 36,106,730 61.21 38.79 93,084,325 100.00 Page 66 Auric Mining Limited Annual Report 31 December 2021 Options over ordinary shares % of total options Number held issued 1 R J & A INVESTMENTS PTY LTD 2 ANAMORPH PTY LTD 3 CONRAD CAPITAL INVESTMENTS PTY LTD 4 5 13 NOMINEES PTY LTD THOMAS FAIRCHILD 6 MINCOR RESOURCES NL 7 SRS HGS PTY LTD 2,916,666 2,527,500 2,500,000 2,405,834 2,312,500 1,833,333 1,812,500 8 CS THIRD NOMINEES PTY LIMITED 1,586,884 9 STEVEN JOHN MORRIS 10 TARGO HOLDINGS PTY LTD 11 GOFFACAN PTY LTD 12 THREE ZEBRAS PTY LTD 13 M & K KORKIDAS PTY LTD 1,156,250 1,156,250 813,697 666,667 550,000 14 MR STEPHEN STRUBEL + MR BRIAN STRUBEL 520,000 15 CONRAD CAPITAL GROUP PTY LTD 16 MR PETER RAFTOPOULOS 17 WHIMPLECREEK PTY LTD 18 MR THOMAS MAUSEZAHL + MRS EVELYN CALAPAN MANZA 19 LYTTON NOMINEES PTY LTD 20 GREENBACK GLOBAL PTY LTD Total Top 20 Others Total Unquoted equity securities There are no unquoted equity securities. 500,000 433,334 383,333 350,000 333,334 333,333 25,091,415 18,816,760 6.64 5.76 5.69 5.48 5.27 4.18 4.13 3.61 2.63 2.63 1.85 1.52 1.25 1.18 1.14 0.99 0.87 0.80 0.76 0.76 57.15 42.85 43,908,175 100.00 Page 67 Auric Mining Limited Annual Report 31 December 2021 Substantial holders The names of the substantial shareholders listed in the Company’s register are: Shareholder: Name R J & A INVESTMENTS PTY LTD MARK ENGLISH & ASSOCIATES ANAMORPH PTY LTD (UTLEY FAMILY A/C) THOMAS FAIRCHILD & FAIRCHILD CAPITAL AUSTRALIA PTY LTD STEPHEN STRUBEL & ASSOCIATES STEVEN MORRIS & ASSOCIATES Voting rights The voting rights attached to ordinary shares are set out below: Number held % Units 7,000,000 6,531,767 6,420,000 6,191,767 6,165,100 6,125,000 7.52 7.02 6.90 6.65 6.62 6.58 Ordinary shares On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. There are no other classes of equity securities. Page 68 

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