! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! CARAVEL!MINERALS!LIMITED! ACN!120!069!089! ! ! ANNUAL!REPORT! ! 30!June!2015! ! ! Corporate!Directory! ! DIRECTORS! Mr!Marcel!Hilmer!–!Executive!Director!and!Chief!Executive!Officer!(“CEO”)! Mr!James!Harris!–!Non@Executive!Director! Mr!Peter!Alexander!–!Non@Executive!Director! ! COMPANY!SECRETARY! Mr!Simon!Robertson! ! REGISTERED!AND!PRINCIPAL!OFFICE! Level!3,!18!Richardson!Street! West!Perth!6005! Western!Australia! ! Telephone:! Facsimile:!! Internet:!www.caravelminerals.com.au! ! +61!8!9426!6400! +61!8!9426!6448! SHARE!REGISTER! Security!Transfer!Registrars!Pty!Ltd! 770!Canning!Highway! Applecross!6153! Western!Australia! ! Telephone:!!! Facsimile:!!! ! +61!8!9315!2333! +61!8!9315!2233! SECURITIES!EXCHANGE!LISTING! Australian!Securities!Exchange!Limited! Home!Branch!–!Perth! Level!40,!Central!Park! 152@158!St!George’s!Terrace! Perth!!!!6000! Western!Australia! ! ASX!CODE! CVV!!!@!Fully!paid!ordinary!shares! CVVOA!@!$0.035!Listed!Options! ! SOLICITORS! Johnson!Winter!&!Slattery! Lawyers! Level!4,!Westralia!Plaza! 167!St!Georges!Terrace! Perth!6000! Western!Australia! ! AUDITOR! BDO!Audit!(WA)!Pty!Ltd! 38!Station!Street!! Subiaco!6008! Western!Australia! ! ! ! ANNUAL!REPORT!2015! ! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Table!of!Contents! ! ! ! ! Chief!Executive!Officer’s!Report! Directors’!Report!.............................................................................................................................................!1! Remuneration!Report!......................................................................................................................................!5! Auditor’s!Independence!Declaration!.............................................................................................................!11! Consolidated!Statement!of!Profit!or!Loss!and!Other!Comprehensive!Income!..............................................!12! Consolidated!Statement!of!Financial!Position!...............................................................................................!13! Consolidated!Statement!of!Changes!in!Equity!..............................................................................................!14! Consolidated!Statement!of!Cash!Flows!........................................................................................................!15! Notes!to!the!Consolidated!Financial!Statements!..........................................................................................!16! Directors’!Declaration!....................................................................................................................................!41! Independent!Auditor’s!Report!........................................................................................................................!42! Corporate!Governance!Statement!................................................................................................................!44! ASX!Additional!Information!...........................................................................................................................!51! ANNUAL!REPORT!2015! ! ! ! CARAVEL!MINERALS!LIMITED! ! ! ! Chief!Executive!Officer’s!Report! ! DEAR!FELLOW!SHAREHOLDER,! ! The!past!year!has!been!characterised!by!a!continuing!decline!in!activity!in!the!mining!sector!in!reaction!to!economic! uncertainty,!international!political!concerns!and!a!flow@on!negative!impact!on!commodity!prices,!confidence!and!funding! availability.!In!response,!the!Company!has!reduced!the!breadth!of!its!exploration!activities!and!reassessed!corporate! costs.! ! The!significant!positive!has!been!the!ongoing!support!for!our!100%@owned!flagship!development,!the!Calingiri!Copper@ Molybdenum!Project!in!Western!Australia!(“Calingiri”).!!! ! Calingiri! is! located! 120km! NE! of! Perth,! near! the! town! of! Calingiri! and! is! potentially! one! of! the! largest! bulk! tonnage! deposits!for!copper!and!molybdenum!in!Australia.!The!project!hosts!a!regional!trend!of!copper@molybdenum@silver@gold! mineralisation!which!extends!for!30km.!Metallurgical!test!work!at!Calingiri!supports!our!strategy!to!develop!a!large!bulk@ tonnage!copper!project.!It!was!very!pleasing!that!the!Company!was!able!to!release!one!new!and!expand!two!existing! JORC! compliant! Exploration! Targets! with! a! substantial! range! of! tonnes! of! copper! and! molybdenum! during! the! year.! This! was! achieved! through! hard! work,! strong! financial! management! and! a! wonderful! exploration! team! and! support! personnel.! ! Another!significant!milestone!for!the!project!was!the!announcement!in!June!2015!of!a!Farm@In!Agreement!(“FIA”)!with! First!Quantum!Minerals!(“FQM”)!that!was!approved!by!shareholders!in!September!2015.!In!summary!the!terms!of!the! agreement!are:! ! •! Under!the!FIA,!FQM!will!contribute!A$3.6!million!for!the!right!to!acquire!50.1%!of!Calingiri!Project!tenements! •! In!the!first!12!months!FQM!will!contribute!a!minimum!of!A$1.2!million!after!which!they!are!entitled!to!withdraw! with!no!right!or!interest!(cid:1)! FQM!have!a!right!to!nominate!one!(1)!board!member!(cid:1)! The! existing! Convertible! Loan! Agreement! with! a! principal! balance! of! A$600,000! was! converted! to! shares! in! Caravel!at!a!conversion!price!of!1.3c,!thus!extinguishing!the!debt!funding!obligations!in!the!Company’s!books! and!(cid:1)! FQM! will! be! provided! with! a! Right! of! First! Offer! after! acquiring! 50.1%,! to! increase! the! FQM! equity! in! the! Calingiri!Project!tenements(cid:1)! •! •! •! ! The!Company!decided!to!limit!activity!on!the!Wynberg!Project,!located!30!km!east!of!Cloncurry!in!North!Queensland.! Although! the! Company! had! announced! the! discovery! of! broad! zones! of! primary! Cloncurry@style! copper@gold! mineralisation!and!alteration,!it!was!decided!to!restrict!exploration!to!enable!a!retained!focus!on!Calingiri.! ! We! were! able! to! considerably! reduce! our! corporate! overhead! costs! to! meet! the! significant! challenges! mentioned! above.! In! 2015! we! achieved! a! 12.4%! reduction! in! overheads! (Administration! Services! and! Employee! Expenses)! and! subsequent!to!year@end,!a!further!reduction!in!the!order!of!13%!has!been!achieved.!! ! At!a!corporate!level,!one!of!our!non@executive!directors,!Mr!Brett!McKeon!resigned!form!the!board.!Brett!was!a!great! contributor! and! we! wish! him! well! as! he! focuses! on! his! other! business! interests.! As! the! sole! Executive! Director! and! CEO,!it!has!been!satisfying!to!work!with!the!board!and!our!team!to!achieve!the!excellent!progress!in!the!past!year.!! ! Noting!the!above!achievements,!it!is!disappointing!to!see!the!lacklustre!performance!of!the!Company’s!share!price.!The! Board!is!keenly!aware!of!this!and!we!believe!that!by!continuing!to!deliver!real!progress!on!the!ground!our!shareholders! will!ultimately!be!rewarded.! ! Kind!regards,!good!luck!and!thank!you!for!taking!the!time!to!consider!this!message.! ! ! Yours!faithfully,! ! ! ! ! Marcel!Hilmer! Executive!Director!and!CEO! ANNUAL!REPORT!2015! ! ! ! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Report! 30!June!2015! DIRECTORS’!REPORT! The!Directors!of!Caravel!Minerals!Limited!(the!“company”)!present!their!report!on!the!consolidated!entity!(the!“group”)! consisting!of!Caravel!Minerals!Limited!and!its!subsidiaries!for!the!year!ended!30!June!2015.! DIRECTORS! The!names!of!directors!in!office!at!any!time!during!or!since!the!end!of!the!financial!year!are:! Mr!Marcel!Hilmer! Mr!James!Harris! Mr!Peter!Alexander! Mr!Brett!McKeon!(resigned!22!May!2015)! Unless!otherwise!indicated,!all!Directors!held!their!positions!from!the!beginning!of!the!year!to!the!date!of!this!report.!! QUALIFICATIONS,!EXPERIENCE!AND!SPECIAL!RESPONSIBILITIES!OF!DIRECTORS! MARCEL!HILMER! Executive)Director)and)CEO) Mr!Hilmer!is!a!Fellow!and!long@standing!member!of!the!Institute!of!Chartered!Accountants!in!Australia!with!more!than! 25!years'!experience!in!executive!management!of!global!public!and!private!organizations.!He!has!significant!expertise! in!international!mergers!and!acquisitions!throughout!Africa,!Europe,!Asia!and!Australia.!Mr!Hilmer!is!the!CEO!of!Forsys! Metals!Corp.,!a!TSX!listed!uranium!developer.!Immediately!prior!to!this!he!was!a!business!development!executive!with! First! Quantum! Minerals! Limited! for! six! years! where! he! was! instrumental! in! effecting! a! number! of! First! Quantum's! significant! acquisitions.! In! addition! to! Mr! Hilmer's! extensive! mining! sector! experience,! from! 1995! to! 2004! he! was! the! Director!and!Head!of!European!Operations!for!Nifco!Inc.,!a!global!automotive!parts!supplier.!Other!than!Forsys!Metals! Corp.!Mr!Hilmer!does!not!currently!hold!any!directorships!of!other!listed!companies,!nor!has!he!done!in!the!past!three! years.! JAMES!HARRIS,!FAICD! Non3Executive)Director) Mr! Harris! has! had! extensive! experience! in! both! government! and! private! enterprise! in! Australia! and! overseas.! He! worked!for!ten!years!with!both!Alcoa!of!Australia!and!the!United!Group!Limited.!His!qualifications!are!in!Legal!Studies! and!Public!Administration!and!he!is!a!Fellow!of!the!Australian!Institute!of!Company!Directors.!He!is!currently!a!Director! of!Swanline!Developments!Pty!Ltd!and!its!associated!companies.!Mr!Harris!does!not!currently!hold!any!directorships!of! other!listed!companies,!nor!has!he!done!in!the!past!three!years.! PETER!ALEXANDER) Non3Executive)Director) Peter! Alexander! is! a! geologist! by! profession! and! has! over! 40! years! experience! in! mineral! exploration! and! mining! in! Australia! and! overseas.! Peter! was! Managing! Director! and! Chief! Executive! Officer! of! Dominion! Mining! Ltd! from! 1997! until! his! retirement! in! January! 2008,! at! which! time! he! continued! as! a! Non@Executive! Director! until! the! takeover! by! Kingsgate! Consolidated! in! 2010.! Peter! is! currently! a! Non@Executive! Director! of! Kingsgate! Consolidated! Limited,! Fortunis!Resources!Limited!and!Non@Executive!Chairman!of!Doray!Minerals!Limited.!Peter!managed!the!start@up!and! operation! of! Dominion's! Challenger! gold! mine! in! South! Australia! and,! under! Peter's! management,! Dominion! won! the! Gold!Mining!Journal's!"Gold!Miner!of!the!Year"!three!years!in!succession.!Other!than!stated!above,!Mr!Alexander!does! not!currently!hold!any!directorships!of!other!listed!companies,!nor!has!he!done!in!the!past!three!years.! BRETT!MCKEON!(RESIGNED!22!MAY!2015)! Non3Executive)Director) Mr!McKeon's!background!is!in!group!strategy,!corporate!governance!and!driving!future!growth!and!direction.!Brett!has! practised! for! over! 25! years! in! the! financial! services! industry! and! brings! considerable! management,! capital! raising,! public! company! and! sales! experience! to! the! Board.! Brett! is! also! a! founding! Director! of! AFG! and! is! the! company's! Managing!Director!and!in!2006!he!was!awarded!the!Ernst!&!Young!Entrepreneur!of!the!Year!for!WA.!Mr!McKeon!does! not!currently!hold!any!directorships!of!other!listed!companies,!nor!has!he!done!in!the!past!three!years.! DIRECTORS!INTERESTS!IN!THE!SHARES!AND!OPTIONS!OF!THE!COMPANY! ! ! ! Marcel!Hilmer! James!Harris! Peter!Alexander! ! ! ANNUAL!REPORT!2015! ! Interest!in!Securities! at!the!date!of!this!Report! Listed!Options! 13,333,333! 658,333! 1,333,333! Unlisted!Options! 4,780,220! 1,126,374! 1,126,374! Shares! 30,268,345! 7,116,851! 5,816,850! ! 1! CARAVEL!MINERALS!LIMITED! ! Directors’!Report!(Continued)! 30!June!2015! ! SIMON!ROBERTSON!B.!BUS!MAPP!FIN.! Company)Secretary) Mr!Robertson!gained!a!Bachelor!of!Business!from!Curtin!University!in!Western!Australia!and!Master!of!Applied!Finance! from! Macquarie! University! in! New! South! Wales.! He! is! a! member! of! the! Institute! of! Chartered! Accountants! and! the! Chartered! Secretaries! of! Australia.! Mr! Robertson! currently! holds! the! position! of! Company! Secretary! for! a! number! of! public! listed! companies! and! has! experience! in! corporate! finance,! accounting! and! administration,! capital! raisings! and! ASX!compliance!and!regulatory!requirements.! ! PRINCIPAL!ACTIVITIES! The! principal! activities! of! the! group! during! the! financial! year! were! the! exploration! of! mineral! tenements! in! Western! Australia!(“WA”)!and!Queensland.! DIVIDENDS! No!dividends!have!been!declared,!provided!for!or!paid!in!respect!of!the!year!ended!30!June!2015.! REVIEW!OF!OPERATIONS!AND!ACTIVITIES! Summary'Review'of'Activities'' Caravel!is!a!junior!explorer!domiciled!in!Perth,!Australia!and!listed!on!the!Australian!Securities!Exchange!(ASX:!CVV).! The! Company! is! a! copper,! molybdenum,! gold! and! base! metals! exploration! and! resource! development! company! with! projects! located! in! WA! and! Queensland.! Caravel! has! a! technically! strong! and! well@established! exploration! and! mine! development! team.! During! the! 2015! year! the! Company! focused! on! the! Calingiri! Copper! Molybdenum! Project! in! WA! whilst!continuing!to!rationalize!its!exploration!portfolio!from!sale!or!surrender!of!a!number!of!tenements!that!were!not! considered!central!to!the!long@term!strategy.!! As! noted,! the! Company’s! focus! is! on! its! 100%@owned! Calingiri! Project! located! 120km! NE! of! Perth,! near! the! town! of! Calingiri.!Calingiri!exploration!activities!progressed!the!potential!of!the!project.!!During!the!year!the!Company!released! a! number! of! additional! news! releases! on! the! progress! at! Calingiri! which! are! available! from! the! Company! website! or! from!the!ASX.!A!quarterly!summary!of!those!announcements!related!to!the!Calingiri!Project!are!as!follows:! Quarter' Announcement' Q1!2014:! Metallurgical! tests! at! Calingiri’s! Bindi! deposit! returned! high! recoveries! of! 95%! copper,! 93%! molybdenum!and!88%!silver,!further!supporting!Caravel’s!strategy!to!develop!a!bulk@tonnage!copper! project! Q2!2014:! Two! new! diamond! drill! holes! testing! the! continuity! of! the! Dasher! prospect,! returned! outstanding! thick!intersections,!including:!! !!!414m!grading!0.40%!CuEq!(Hole!12CADD001),!including:!!100m'grading'0.50%'CuEq'! !!!103m!@!0.36%!Cu!Eq!(Hole!14CAD001),!including:!!41m'grading'0.45%'CuEq'! The! Calingiri! project! expanded! further! with! successful! scout! drilling! identifying! extensions! to! the! Bindi! Prospect.! These! promising! results! were! outside! of! current! defined! mineralisation! and! confirmed!growth!potential!! Q3!2015:! A! major! drilling! program! announced! with! 9,000! metres! of! reverse! circulation! drilling! planed! across! multiple!targets! Drilling! results! significantly! increased! the! estimated! size! and! economic! potential! of! the! Calingiri! Project!with!increases!to!the!consolidated!Exploration!Targets!at!Bindi!and!Dasher!Prospects.!!! A!significant!new!mineralised!zone!was!discovered!at!the!Opie!Prospect!with!results!including:! !!!122m@0.37%CuEqincluding4m@1.98CuEq!(cid:1) ! !!!!!54m!@!0.35%!CuEq(cid:1) ! Q4!2015:! Latest!drilling!results!significantly!increased!the!estimated!size!and!economic!potential!of!the!project.! The!consolidated!Exploration!targets!were!further!updated!as!follows:! ! Cut[off!grades! Cu! Tonnage! Range!(Mt)! Cu!Range! (%)! Mo! Range! (ppm)! Ag!Range! (ppm)! Au! range! (ppb)! CuEq!! (%)! (%)! 0.2%! 0.3%! ! 435!–!460! 0.30!–!0.32! 58!–!63! 1.6!–!1.7! 31!–!33! 0.35!–!0.37! 275!–!335! 0.35!–!0.37! 68!–73! 1.9!–!2.1! 34!–!38! 0.41!–!0.43! ANNUAL!REPORT!2015! ! ! 2! CARAVEL!MINERALS!LIMITED! ! Directors’!Report!(Continued)! 30!June!2015! ! An! Exploration! Target! is! conceptual! in! nature! and! there! has! been! insufficient! exploration! to! estimate! a! Mineral! Resource!and!it!is!uncertain!if!further!exploration!will!result!in!the!estimation!of!a!Mineral!Resource.!! The! Company! previously! announced! the! discovery! of! broad! zones! of! primary! Cloncurry@style! copper@gold! mineralisation! and! alteration! at! the! Wynberg! Project! in! Qld.! The! results! significantly! upgraded! the! potential! and! prospectivity! of! the! Wynberg! Project! but! the! company! delayed! further! exploration! activities! to! remain! focused! on! Calingiri!and!to!preserve!available!free!cash.! During! the! year! the! company! successfully! completed! fund! raisings.! A! private! placement! in! October! 2014! that! raised! $720,000,!a!convertible!loan!agreement,!also!in!October!2014,!that!raised!an!additional!$600,000!and!a!short@term!loan! in!June!2015!for!$200,000.! The!company’s!future!activities!will!focus!on!completing!additional!exploration!at!Calingiri!including!air!core,!diamond! and!RC!drilling,!as!well!as!commencing!a!Scoping!Study.! During! the! year! the! Company! received! R&D! rebates! from! the! Australian! Government! for! eligible! exploration! expenditure! incurred! in! the! financial! year! ending! 30! June! 2014! at! the! Calingiri! Project! being! $312,469.! An! additional! claim!for!2015!eligible!expenditure!will!be!lodged!with!the!Company!tax!return!but!no!rebate!has!been!booked!in!the! accounts!at!30!June!2015!as!it!is!subject!to!approval!by!the!Australian!Taxation!Office.!During!the!year!the!company! also!received!$196,884!from!the!WA!Government!under!the!Exploration!Incentive!Scheme.! CORPORATE!AND!FINANCIAL!POSITION! The!group’s!net!loss!from!operations!for!the!year!was!$2,718,672!(2014:!$3,490,998).! At!30!June!2015!the!group!had!a!cash!balance!of!$146,414!(2014:!$675,753).! This! report! is! prepared! on! the! going! concern! basis! which! assumes! the! continuity! of! normal! business! activity! and! the! realisation!of!assets!and!settlement!of!liabilities!in!the!normal!course!of!business.! The!Group!had!net!assets!of!$2,523,382!(2014:!$4,280,546).!The!Directors!believe!there!are!sufficient!funds!to!meet! the!Group’s!working!capital!requirements!and!as!at!the!date!of!this!report!the!Group!believes!it!can!meet!all!liabilities!as! and!when!they!fall!due.!! The!Directors!have!reviewed!the!business!outlook!and!the!assets!and!liabilities!of!the!Group!and!are!of!the!opinion!that! the! going! concern! basis! of! accounting! is! appropriate! as! they! believe! the! Group! will! continue! to! be! successful! in! securing!additional!funds!through!equity!issues!as!and!when!the!need!to!raise!funds!arises.! BUSINESS!STRATEGIES!AND!PROSPECTS! The!group!currently!has!the!following!business!strategies!and!prospects!over!the!medium!to!long!term:! (i)! Seek!to!maximise!the!value!of!the!group!through!successful!exploration!activitiesp! (ii)! Selectively!expand!the!group’s!portfolio!of!exploration!assetsp!and! (iii)! Examine!other!new!business!development!opportunities!in!the!mining!and!resources!sector.! ! SIGNIFICANT!CHANGES!IN!THE!STATE!OF!AFFAIRS! During!the!year!the!Company!raised!additional!capital!of!$720,000!through!the!issue!of!55,384,616!shares!as!detailed! in! note! 18! of! the! Consolidated! Financial! Statements! with! net! cash! received! of! $676,032.! In! addition! there! were! 25,898,845!shares!issued!as!share!based!payments!of!$292,901!issued!to!drilling!contractors!for!services!received.! On! 2! June! 2015! the! Company! executed! a! farm@in! agreement!with!First!Quantum!Minerals!(“FQM”)! which!will!enable! Caravel!to!continue!to!advance!the!Calingiri!Copper@!Molybdenum!Project.!FQM!will!have!the!right!to!acquire!a!50.1%! interest!in!the!Calingiri!Project!after!contributing!$3.6!million.!The!farm@in!was!approved!by!shareholders!at!a!General! Meeting!held!on!27!August!2015.! MATTERS!SUBSEQUENT!TO!THE!END!OF!THE!FINANCIAL!YEAR! On!8!July!2015!the!company!announced!the!execution!of!a!definitive!Farm@in!Agreement!with!First!Quantum!Minerals! (Australia)! Pty! Ltd! (“FQM”)! for! the! right! to! acquire! a! 50.1%! equity! interest! in! the! Calingiri! exploration! project! for! a! contribution!of!$3.6!million.!Terms!of!the!agreement!include:! •! FQM!to!contribute!$3.6!million!for!the!right!to!acquire!50.1%!of!the!Calingiri!project!tenements! •! In!the!first!12!months!FQM!to!contribute!a!minimum!$1.2!million!at!which!time!they!are!entitled!to!withdraw!with!no! right!or!interest! •! The! existing! Convertible! Loan! Agreement! with! a! principal! balance! of! $600,000! will! be! converted! to! shares! in! Caravel!at!a!conversion!price!of!1.3c!per!share! •! After!acquiring!50.1%!in!Calingiri!tenements!FQM!will!have!a!Right!of!First!Offer!to!increase!their!equity!interest!in! Calingiri! ! ! ANNUAL!REPORT!2015! ! ! 3! CARAVEL!MINERALS!LIMITED! ! Directors’!Report!(Continued)! 30!June!2015! ! Finalisation!of!some!terms!and!conditions!of!the!Farm@in!Agreement!were!approved!at!a!Caravel!shareholder!General! Meeting!held!on!27!August!2015.!At!the!same!meeting!shareholders!approved!the!issue!of!48,356,154!shares!for!the! conversion!of!the!Convertible!Loan!with!FQM.!These!shares!were!issued!on!28!August!2015.! ! On!28!July!2015!Caravel!repaid!in!full!the!promissory!note!of!$200,000!plus!outstanding!accrued!interest.!! ! Caravel! announced! a! $1.45! million! capital! raising! through! a! private! placement! on! 13! July! 2015.! Details! of! the! placement!are!as!follows:! •! Commitments! from! investors! to! raise! $1,451,940! through! the! issue! of! 207,420,009! shares! at! an! issue! price! of! $0.007.!One!attaching!free!unlisted!option!exercisable!at!$0.013!for!each!two!shares!issued!! •! Tranche!1!comprising!140,134,291!shares!were!issued!17!July!2015!raising!$980,940! •! Tranche! 2! comprising! 67,285,718! shares! to! raise! $471,000! and! the! issue! of! 103,710,005! unlisted! options,! exercisable! at! $0.013! on! or! before! 31! January! 2017! to! investors! of! the! placement,! was! approved! at! a! Caravel! shareholder!General!Meeting!held!on!27!August!2015! •! 70,067,146!options!were!issued!to!Tranche!1!investors!on!28!August!2015.!The!Tranche!2!shares!and!options!were! issued!on!7!September!2015.! Except!for!the!matters!detailed!above,!at!the!date!of!this!report!there!are!no!other!matters!or!circumstances,!which!have! arisen!since!30!June!2015!that!have!significantly!affected!or!may!significantly!affect:! the!operations!in!financial!years!subsequent!to!30!June!2015!of!the!groupp! the!results!of!those!operations!in!financial!years!subsequent!to!30!June!2015!of!the!groupp!or! the!state!of!affairs!in!financial!years!subsequent!to!30!June!2015!of!the!group.! (i)! (ii)! (iii)! ! ENVIRONMENTAL!REGULATION!AND!PERFORMANCE! The! group’s! operations! are! subject! to! various! environmental! laws! and! regulations! under! the! relevant! government’s! legislation.! Full! compliance! with! these! laws! and! regulations! is! regarded! as! a! minimum! standard! for! all! operations! to! achieve.! Instances! of! environmental! non@compliance! by! an! operation! are! identified! either! by! external! compliance! audits! or! inspections! by! relevant! government! authorities.! There! have! been! no! significant! known! breaches! by! the!group! during! the!financial!period.!! LIKELY!DEVELOPMENTS!AND!EXPECTED!RESULTS!! It!is!the!Board's!current!intention!that!the!group!will!seek!to!progress!exploration!on!current!projects.!The!group!will!also! continue!to!examine!new!opportunities!in!the!mining!and!resources!sector!where!appropriate.! These!activities!are!inherently!risky!and!there!can!be!no!certainty!that!the!group!will!be!able!to!successfully!achieve!the! objectives.!! GREENHOUSE!GAS!AND!ENERGY!DATA!REPORTING!REQUIREMENTS! The! Directors! have! considered! compliance! with! the! National! Greenhouse! and! Energy! Reporting! Act! 2007! which! requires!entities!to!report!annual!greenhouse!gas!emissions!and!energy!use.! The!directors!have!assessed!that!there! are!no!current!reporting!requirements,!but!may!be!required!to!do!so!in!the!future.! MEETINGS!OF!DIRECTORS! The! following! table! sets! out! the!number! of! meetings! of! the! Company's! directors! held! during! the!year! ended! 30! June! 2015,!and!the!number!of!meetings!attended!by!each!director.! ! Marcel!Hilmer! James!Harris) Peter!Alexander! Brett!McKeon!(resigned!22!May!2015)! INSURANCE!OF!OFFICERS!AND!AUDITORS! Board!Meetings' Number!Eligible!' to!attend' Board!Meetings' Number!' attended' 8! 8! 8! 7! 8! 7! 7! 7! During! or! since! the! end! of! the! financial! year! the! Company! has! given! an! indemnity! or! entered! into! an! agreement! to! indemnify,!or!paid!or!agreed!to!pay!insurance!premiums!as!follows:! The!Company!has!paid!premiums!to!insure!each!of!the!directors!against!liabilities!for!costs!and!expenses!incurred!by! them! in! defending! any! legal! proceedings! arising! out! of! their! conduct! while! acting! in! the! capacity! of! director! of! the! Company,!other!than!conduct!involving!a!wilful!breach!of!duty!in!relation!to!the!Company.!The!amount!of!the!premium! was!$8,036!(2014:!$!8,657)!exclusive!of!GST.! ANNUAL!REPORT!2015! ! ! 4! CARAVEL!MINERALS!LIMITED! ! Directors’!Report!(Continued)! 30!June!2015! ! SHARE!OPTIONS!ON!ISSUE!AT!THE!DATE!OF!THIS!REPORT! UNISSUED!SHARES! At!the!date!of!this!report,!the!unissued!ordinary!shares!of!Caravel!Minerals!Limited!under!option!are!as!follows! ! Grant!Date! 27!March!2013! 28!June!2013! 27!September!2013! 17!October!2013! 20!March!2014! 17!October!2014! 20!November!2014! 28!August!2015! 7!September!2015! 7!September!2015! Expiry!Date! 26!March!2016! 31!May!2016! 31!May!2016! 16!October!2016! 31!December!2016! 16!October!2016! 16!October!2016! 31!January!2017! 31!January!2017! 31!January!2017! Exercise!Price! $0.100! $0.035! $0.035! $0.021! $0.035! $0.020! $0.020! $0.013! $0.013! $0.013! Number!under!option! 20,000,000! 115,982,326) 50,613,262) 750,000) 83,333,333) 50,000,000! 5,384,616) 70,067,146) 33,642,860) 12,000,000) Total! ! ! 441,773,543! ! Option!holders!do!not!have!any!right,!by!virtue!of!the!option,!to!participate!in!any!share!issue!of!the!Company!or!any! related!body!corporate.! SHARES!ISSUED!AS!A!RESULT!OF!THE!EXERCISE!OF!OPTIONS! During!the!financial!year,!employees!and!executives!did!not!exercise!any!options!to!acquire!ordinary!shares.! ! NON[AUDIT!SERVICES! The!Directors!are!satisfied!that!the!provision!of!non@audit!services!during!the!period!ended!30!June!2015!by!the!auditor! (BDO!Audit!(WA)!Pty!Ltd!(“BDO”))!is!compatible!with!the!general!standard!of!independence!for!auditors!imposed!by!the! Corporations!Act!2001,!as:! (i)! There!were!no!non@audit!service!provided!during!the!yearp!and! (ii)! Details!of!amounts!paid!or!payable!to!the!auditor!for!non@audit!services!provided!during!the!period!by!the!auditor! are!outlined!in!Note!24!to!the!Consolidated!Financial!Statements.! Based!on!the!above,!the!Board!is!satisfied!that!there!were!no!non@audit!services!provided!and!so!did!not!compromise! the!auditor’s!independence.! AUDITOR’S!INDEPENDENCE!DECLARATION! The!auditor’s!independence!declaration!is!on!page!11!of!the!Annual!Report.! REMUNERATION!REPORT! (AUDITED)! This! Remuneration! Report! outlines! the! director! and! executive! remuneration! arrangements! of! the! Company! in! accordance!with!the!requirements!of!the!Corporations'Act'2001!and!its!Regulations.!For!the!purposes!of!this!report!Key! Management! Personnel! (KMP)! of! the! Group! are! defined! as! those! persons! having! the! authority! and! responsibility! for! planning,!directing!and!controlling!the!major!activities!of!the!Group,!directly!or!indirectly,!including!any!director!(whether! executive!or!otherwise)!of!the!Group.!Based!on!this!definition!the!KMP!of!Caravel!Minerals!Limited!are!the!directors!of! the!Company.! DETAILS!OF!KEY!MANAGEMENT!PERSONNEL! Directors) Executive!Director!and!CEO! Mr!Marcel!Hilmer! Non@Executive!Director! Mr!James!Harris! Mr!Peter!Alexander! Non@Executive!Director! Mr!Brett!McKeon!(resigned!22!May!2015)! Non@Executive!Director! ! ! ! ! ! ! There!were!no!changes!in!KMP!after!the!reporting!date!and!before!the!date!the!annual!financial!report!was!authorised! for!issue.! ANNUAL!REPORT!2015! ! ! 5! CARAVEL!MINERALS!LIMITED! ! Directors’!Report!(Continued)! 30!June!2015! ! REMUNERATION!PHILOSOPHY! The!performance!of!the!Company!depends!upon!the!quality!of!its!Directors!and!Executives.!To!prosper,!the!Company! must!attract,!motivate!and!retain!highly!skilled!Directors!and!Executives.! To!this!end,!the!Company!embodies!the!following!principles!in!its!remuneration!framework:! •! •! Provide!competitive!rewards!to!attract!high!calibre!executivesp!and! Link!executive!rewards!to!shareholder!value.! Due!to!the!early!stage!of!development!which!the!Company!is!in,!shareholder!wealth!is!directly!affected!by!the!Company! share!price,!as!the!Company!is!not!in!a!position!to!pay!dividends.!By!remunerating!Directors!and!Executives!in!part!by! share!based!payments,!the!Company!aims!to!align!the!interests!of!Directors!and!Executives!with!Shareholder!wealth,! thus! providing! individual! incentive! to! perform! and! thereby! improving! overall! Company! performance! and! associated! value.! As!the!Company!has!only!been!incorporated!since!June!2006!and!is!in!the!development!stage!of!an!inherently!risky! industry,!the!remuneration!policy!does!not!currently!take!into!account!current!or!prior!year!earnings.!Other!than!share! based!payments!made!to!the!directors!from!time!to!time,!there!is!no!specific!link!to!the!Company’s!performance!and! directors’!remuneration.! REMUNERATION!STRUCTURE! In! accordance! with! best! practice! corporate! governance,! the! structure! of! non@executive! director! and! executive! remuneration!is!separate!and!distinct.! NON[EXECUTIVE!DIRECTOR!REMUNERATION! Objective) The!Board!seeks!to!set!aggregate!remuneration!at!a!level!which!provides!the!Company!with!the!ability!to!attract!and! retain!directors!to!the!highest!calibre,!whilst!incurring!a!cost!which!is!acceptable!to!shareholders.! Structure) The! Constitution! and! the! ASX! Listing! Rules! specify! that! the! aggregate! directors'! fees! payable! to! non@executive! directors!shall!be!determined!from!time!to!time!by!a!general!meeting.!An!amount!not!exceeding!the!amount!determined! is! then! divided! between! the! directors! as! agreed.! Shareholders’! have! approved! aggregate! directors'! fees! payable! of! $300,000!per!year.! 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.! Fees! for! non@ executive! directors! are! not! linked! to! the! performance! of! the! Company! or! shareholder! wealth.! However,! to! align! directors’!interests!with!shareholder!interests,!the!directors!are!encouraged!to!hold!shares!in!the!Company!and!subject! to! shareholder! approval,! have! received! or! may! receive! options! or! shares! issued! under! the! Caravel! Employee! Share! Acquisition! Plan.! This! effectively! links! directors’! performance! to! the! share! price! performance! and! therefore! to! the! interests!of!shareholders.! For!this!reason!there!are!no!performance!conditions!prior!to!grant,!but!instead!an!incentive!to!increase!the!value!to!all! shareholders.! During!the!financial!year!ended!30!June!2015!no!shares!or!options!were!granted!to!Non@Executive!Directors.!! During! the! year! ended! 30! June! 2014! 9,000,000! shares! were! issued! to! Non@Executive! Directors! under! the! Caravel! Employee!Share!Acquisition!Plan.! All!remuneration!paid!to!Non@Executive!Directors!is!valued!at!cost!to!the!Company!and!expensed.! The!remuneration!of!Non@Executive!Directors!for!the!years!ended!30!June!2015!and!30!June!2014!is!detailed!on!page! 7!and!8!of!this!report.! ! EXECUTIVE!REMUNERATION! Objective) The!Company!aims!to!reward!executives!(both!directors!and!company!executives)!with!a!level!and!mix!of!remuneration! commensurate!with!their!position!and!responsibilities!within!the!Company!and!so!as!to:! •! •! •! Reward!executives!for!Company!performancep! Align!the!interest!of!executives!with!those!of!shareholdersp!and! Ensure!total!remuneration!is!competitive!by!market!standards.! Structure) The! remuneration! policy! for! executives! is! to! provide! a! fixed! remuneration! component! and! a! specific! equity! related! component.! The! board! believes! that! this! remuneration! policy! is! appropriate! given! the! stage! of! development! of! the! Company!and!the!activities!which!it!undertakes!and!is!appropriate!in!aligning!director!objectives!with!shareholder!and! business!objectives.! ANNUAL!REPORT!2015! ! ! 6! CARAVEL!MINERALS!LIMITED! ! Directors’!Report!(Continued)! 30!June!2015! ! The!remuneration!policy!going!forward!in!regard!to!setting!the!terms!and!conditions!for!the!executive!directors!has!been! developed!by!the!board!taking!into!account!market!conditions!and!comparable!salary!levels!for!companies!of!a!similar! size!and!operating!in!similar!sectors.! Fixed'Remuneration'' Objective) The!level!of!fixed!remuneration!is!set!so!as!to!provide!a!base!level!of!remuneration.! Fixed! remuneration! is! to! be! reviewed! annually! and! the! process! consists! of! a! review! of! company! and! individual! performance,!relevant!comparative!remuneration!in!the!market!and!internal!policies!and!practices.! Structure) Executives!are!given!the!opportunity!to!receive!their!fixed!remuneration!in!a!variety!of!forms!including!cash!and!fringe! benefits.!It!is!intended!that!the!manner!of!payment!chosen!will!be!optimal!for!the!recipient!without!creating!undue!cost! for!the!Company.! The!remuneration!policy!going!forward!in!regard!to!setting!the!terms!and!conditions!for!the!executive!directors!has!been! developed!by!the!board!taking!into!account!market!conditions!and!comparable!salary!levels!for!companies!of!a!similar! size!and!operating!in!similar!sectors.! The!remuneration!of!executives!for!the!years!ended!30!June!2015!and!30!June!2014!are!detailed!on!page!7!and!8!of! this!report.! Variable'Remuneration' Objective) The! objective! of! variable! remuneration! provided! is! to! reward! executives! in! a! manner! which! aligns! this! element! of! remuneration!with!the!creation!of!shareholder!wealth.! Structure) Variable!remuneration!may!be!delivered!in!the!form!of!options!or!cash!bonus.!No!cash!bonuses!were!granted!during! the!year!ended!30!June!2015!or!in!the!prior!year.! No!shares!or!options!were!granted!to!executives!during!the!year!ended!30!June!2015.!! Executives!receive!a!superannuation!guarantee!contribution!required!by!the!government,!which!is!currently!9.5%!(9.5%! for! the! year! ended! 30! June! 2014)! and! do! not! receive! any! other! retirement! benefit.! Some! individuals,! however,! may! choose!to!sacrifice!part!of!their!salary!to!increase!payments!towards!superannuation.! All!remuneration!paid!to!executives!is!valued!at!cost!to!the!Company!and!expensed.! EMPLOYMENT!CONTRACTS! Executive)Director)and)CEO)(current)) The! employment! conditions! of! the! Executive! Director,! Mr! Marcel! Hilmer,! are! formalised! in! a! contract! of! employment! which! commenced! on! 20! November! 2012! with! an! initial! contract! for! a! two! year! fixed! term,! which! has! now! been! extended!with!no!fixed!end!date.!The!total!current!remuneration!package!as!at!30!June!2015!was!$209,419!per!annum! inclusive!of!a!9.5%!superannuation!contribution.! Notice!of!at!least!three!months!is!required!for!either!party!to!terminate!the!contract.!! ! KEY!MANAGEMENT!PERSONNEL!REMUNERATION! REMUNERATION!FOR!THE!YEAR!ENDED!30!JUNE!2015! ! ! ! Executive!Director) Marcel!Hilmer!! Non[Executive!Directors) James!Harris) Peter!Alexander!! Brett!McKeon!(resigned!22!May!2015)! Short!Term! Salary,!Fees! Long!Term! Benefits! &! Commissions! Termination! Payments! Post[employment! Superannuation! Share!Based! Payments! Shares! ! ! Options' Total' $' ! 174,099! ! 32,089! 32,089! 28,639! $! ! @! ! @! @! @! $' ! 37,502!! ! 3,048) 3,048! 2,721! ! $! @! ! 1,032! 1,032! 1,032! 3,096! $' ! $' ! ! @! @) @! @! [! (1)!211,601! ! 36,169) 36,169! 32,392! 316,331! Total) 46,319! (1)! Total!remuneration!varies!to!the!contract!amount!due!to!movements!in!the!annual!leave!provision! 266,916! [! ANNUAL!REPORT!2015! ! ! 7! CARAVEL!MINERALS!LIMITED! ! Directors’!Report!(Continued)! 30!June!2015! ! REMUNERATION!FOR!THE!YEAR!ENDED!30!JUNE!2014! ! ! ! Executive!Director) Marcel!Hilmer!! Non[Executive!Directors! James!Harris) Peter!Alexander!! Brett!McKeon!! Total) ! SHARE!BASED!COMPENSATION! Short!Term! Salary,!Fees! Long!Term! Benefits! &! Commissions! Termination! Payments! $' ! 191,667! ! 33,033! 33,033! 33,033! 290,766! $! ! @! ! @! @! @! [! Post[employment! Share!Based! Payments! Superannuation! Shares! Options' Total' $' ! $! $' ! ! $' ! 18,210!! 37,230! ! 3,055) ! 12,843! 3,055! 12,843! 3,055! 12,843! 27,375! 75,759! ! @! @) @! @! [! 247,107! ! 48,931) 48,931! 48,931! 393,900! SHARES'ISSUED' Shareholders!approved!the!establishment!of!the!Caravel!Employee!Share!Acquisition!Plan!at!a!general!meeting!on!13! March!2013.!The!Company!believes!that!the!share!acquisition!plan!provides!eligible!employees!and!Directors!effective! incentive! for! their! ongoing! commitment! and! contribution! to! the! Company.! Eligible! employees! and! Directors! offered! shares!under!the!scheme!are!provided!a!limited!recourse,!interest!free!loan!to!be!used!to!subscribe!for!the!shares!in! the!Company.!No!shares!were!issued!to!KMP!under!the!scheme!during!the!year!ended!30!June!2015.!The!following! shares!are!held!by!KMP!under!the!terms!of!the!plan.! ! Date!shares! granted! Number! of!Shares! Granted! Issue! Price! Value!of! shares! granted! Shares!vested!at! 30!June!2015! Vested! %! Value!of! shares!to! be!vested! Vesting!date! unvested! shares! Marcel!Hilmer! 15@Mar@2013! 7,500,000! $0.02760! $72,000! 2014:!3,750,000! 100%! 2013:!3,750,000! James!Harris! 6@Nov@2013! 3,000,000! $0.01335! $13,875! 2015:!1,500,000! 100%! 2014:!1,500,000! Peter!Alexander! 6@Nov@2013! 3,000,000! $0.01335! $13,875! 2015:!1,500,000! 100%! 2014:!1,500,000! Brett!McKeon! (resigned!22!May! 2015)! 6@Nov@2013! 3,000,000! $0.01335! $13,875! 2015:!1,500,000! 100%! 2014:!1,500,000! @! @! @! @! @! @! @! @! For! details! on! the! valuation! of! the! shares,! including! models! and! assumptions! used,! please! refer! to! Note! 20! in! the! Consolidated!Financial!Statements.! OPTIONS'ISSUED' As! discussed! above! under! “Remuneration! Structure”,! options! granted! to! Directors! and! other! KMP! are! not! linked! to! either!individual!performance!or!the!performance!of!the!Company,!but!are!instead!issued!as!an!incentive!to!align!the! goals!of!Directors!and!other!KMP!with!those!of!all!shareholders.! There!are!no!performance!conditions!prior!to!vesting!and!all!options!were!issued!for!nil!consideration.! No!options!were!granted!to!Directors!or!other!KMP!for!the!years!ending!30!June!2015.! There!were!no!alterations!to!the!terms!and!conditions!of!options!granted!as!remuneration!since!their!grant!date.! There!were!no!forfeitures!or!cancellations!during!the!year.! The!maximum!grant,!which!will!be!payable!assuming!that!all!service!criteria!are!met,!is!equal!to!the!number!of!options! granted!multiplied!by!the!fair!value!at!the!grant!date.!The!minimum!grant!payable!assuming!that!service!criteria!are!not! met!is!zero.! The! plan! rules! contain! a! restriction! on! removing! the! “at! risk”! aspect! of! the! instruments! granted! to! executives.! Plan! participants!may!not!enter!into!any!transaction!designed!to!remove!the!“at!risk”!aspect!of!an!instrument!before!it!vests.! No!compensation!options!were!exercised!during!the!year.! ! ! ANNUAL!REPORT!2015! ! ! 8! CARAVEL!MINERALS!LIMITED! ! Directors’!Report!(Continued)! 30!June!2015! ! ADDITIONAL!DISCLOSURES!RELATING!TO!KEY!MANAGEMENT!PERSONNEL! SHAREHOLDING' The!number!of!shares!in!the!company!held!during!the!financial!year!by!KMP!of!the!consolidated!entity,!including!their! personally!related!parties,!is!set!out!below:! ! Balance!at! beginning!of!year! Granted!as! remuneration! On!exercise!of! options! Net!change!other! ! Marcel!Hilmer! James!Harris! Peter!Alexander! Brett!McKeon!! (resigned!22!May!2015)! ! 22,630,982! 5,633,334! 4,333,333! 12,109,426! 44,707,075! @! @! @! @! [! @! @! @! @! [! 1,923,077! 769,231! 769,231! Balance' 30!June!15' 24,554,059! 6,402,565! 5,102,564! 1,923,077! (1)14,032,503! 5,384,616! 50,091,691! (1)'Holding'at'time'of'resignation' Option'holding' The! number! options! over! ordinary! shares! in! the! company! held! during! the! financial! year! by!KMP! of! the! consolidated! entity,!including!their!personally!related!parties,!is!set!out!below:! ! ! Balance!at! beginning! of!year! Granted!as! remuneration! Options! expired! Net!change! other! Balance!at! end!of!year! Vested!at!30!June!2015! Exercis[ able! Not!exerc[ isable! Total! Directors! ! ! ! ! ! ! ! ! Marcel!Hilmer! 13,333,333! James!Harris! 987,500! Peter!Alexander! 1,333,333! Brett!McKeon! (resigned!22!May! 2015)! 8,333,333! ! 23,987,499! (1)'Holding'at'time'of'resignation' @! @! @! @! [! @! 1,923,077! 15,256,410! 15,256,410! 15,256,410! 329,167! 769,231! 1,427,564! 1,427,564! 1,427,564! @! @! 769,231! 2,102,564! 2,102,564! 2,102,564! 1,923,077! (1)10,256,410! 10,256,410! 10,256,410! 329,167! 5,384,616! 29,042,948! 29,042,948! 29,042,948! @! @! @! @! [! Other'transactions'with'KMP' During! the! year! ending! 30! June! 2015! $60,000! was! received! from! a! public! company,! of! which! Mr! Marcel! Hilmer! is! a! director,!for!provision!of!serviced!offices!(2014:!$60,000).!! USE!OF!REMUNERATION!CONSULTANTS! The!company!did!not!use!the!services!of!any!remuneration!consultants!during!the!year.! VOTING!AND!COMMENTS!MADE!AT!THE!COMPANY’S!2014!ANNUAL!GENERAL!MEETING! At!the!2014!Annual!General!Meeting!held!on!20!November!2014!the!company’s!shareholders!did!not!record!a!vote!of! more! than! 25%! against! the! Remuneration! Report! and! no! questions! were! raised! at! the! meeting! in! relation! to! the! Remuneration!Report.! ! END!OF!AUDITED!REMUNERATION!REPORT! ! ! Signed!in!accordance!with!a!resolution!of!the!directors.! ! ! ! ! Marcel!Hilmer! Executive!Director!&!CEO! Perth!! 16!September!2015! ! ! ANNUAL!REPORT!2015! ! ! 9! CARAVEL!MINERALS!LIMITED! ! Directors’!Report!(Continued)! 30!June!2015! ! ! Cautionary!Statement!! An! Exploration! Target! is! conceptual! in! nature! and! there! has! been! insufficient! exploration! to! estimate! a! Mineral! Resource!in!compliance!with!the!JORC!Code!and!it!is!uncertain!if!further!exploration!will!result!in!the!estimation!of!a! Mineral!Resource!as!defined!by!the!JORC!Code.!(see'ASX'News'Release'dated'2'August'2013).! ! Competent!Person’s!Statement! The! information! in! this! report! that! relates! to! Exploration! Targets! and! Exploration! Results! is! based! on! and! fairly! represents!information!and!supporting!documentation!compiled!by!Tony!Poustie,!a!Competent!Person!who!is!a!full@time! employee!of!Caravel!Minerals!Limited!and!a!Fellow!of!the!Australasian!Institute!of!Mining!and!Metallurgy.!Mr.!Poustie! 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!Poustie!consents!to!the!inclusion!in!the! report!of!the!matters!based!on!his!information!in!the!form!and!context!in!which!it!appears.!! ! ! ANNUAL!REPORT!2015! ! ! 10! CARAVEL!MINERALS!LIMITED! Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au 38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF CARAVEL MINERALS LIMITED As lead auditor of Caravel Minerals Limited for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Caravel Minerals Limited and the entities it controlled during the period. Jarrad Prue Director BDO Audit (WA) Pty Ltd Perth, 16 September 2015 BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees. ! Consolidated!Statement!of!Profit!or!Loss!and!Other!Comprehensive!Income! For!the!Year!Ended!30!June!2015! CONSOLIDATED!STATEMENT!OF!PROFIT!OR!LOSS!AND!OTHER!COMPREHENSIVE!INCOME! ! ! Revenue!from!continuing!operations! Other!income! ! Administration!services) Depreciation!expense) Employee!expenses) Exploration!expenses) Impairment!of!exploration!expenditure! Finance!expenses! Loss!on!available@for@sale!investments) Loss!from!continuing!operations!before!income!tax!expense) Income!tax!expense!relating!to!continuing!operations) Loss!from!continuing!operations) ! Profit!(loss)!from!discontinued!operations) Loss!for!the!year) Other!comprehensive!income) Items!that!may!be!reclassified!to!profit!or!loss) Foreign!currency!translation!adjustment) Unrealised!gain!on!available@for@sale!investments) Reclassification!of!unrealised!loss!on!available!for!sale! investments! Other!comprehensive!(loss)!income!for!the!year!net!of!taxes) Comprehensive!loss!attributable!to!the!shareholders!of!the! Company) Comprehensive!(loss)!income!attributable!to!the!shareholders!of! the!Company!arises!from:) Continuing!activities) Discontinued!operations) ! ! Note' 5(a)' 5(b)' 13) 5(c)) ' ' 12) 8' 7) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Basic!and!diluted!loss!per!share!(cents!per!share)!for!continuing! operations!attributable!to!the!shareholders!of!the!Company! Basic!and!diluted!loss!per!share!(cents!per!share)!attributable!to! the!shareholders!of!the!Company! 6' 6' 2015' $! 2014' $! 13,221) 109,400' 509,353) 289,871' ! ! (506,764)) (500,128)' (30,246)) (90,497)' (992,456)) (1,212,000)' (1,546,285)) (1,990,005)' (200,000)! (40,115)! (8,545)) @! @! @' ) (2,801,837)) (3,393,359)' [) @' (2,801,837)) (3,393,359)' ! ! 83,165) (97,639)' (2,718,672)) (3,490,998)' ! ! (40,025)) 5,001) 8,545! (5,778)' 12,504' @! (26,479)) 6,726' (2,745,151)) (3,484,272)' ! ! (2,788,291)) (3,380,855)' 43,140) (103,417)' (2,745,151)) (3,484,272)' ! ! (0.39)) (0.59)' (0.38)) (0.61)' ! The' above' Consolidated' Statement' of' Profit' or' Loss' and' Other' Comprehensive' Income' should' be' read' in' conjunction' with' the' accompanying'notes.' ! ANNUAL!REPORT!2015! ! ! 12! CARAVEL!MINERALS!LIMITED! ! Consolidated!Statement!of!Financial!Position! As!at!30!June!2015! CONSOLIDATED!STATEMENT!OF!FINANCIAL!POSITION! ! Current!Assets! Cash!and!cash!equivalents) Trade!and!other!receivables) Other!current!assets) Total!Current!Assets! Non[Current!Assets) Investments) Plant!and!equipment) Exploration!and!evaluation!expenditure) Total!Non[Current!Assets! TOTAL!ASSETS! ! Current!Liabilities! Trade!and!other!payables) Provisions) Interest!bearing!liabilities! Total!Current!Liabilities! TOTAL!LIABILITIES! NET!ASSETS! ! EQUITY! Share!capital) Accumulated!loss) Reserves! TOTAL!EQUITY! ! Note' ' ! 9! 10! 11) ! ! 12! 13) 14) ! ! ! ! 15) 16) 17! ! ! ! ! ! 2015! $! ! 146,414) 3,893) 59,200) 209,507) ! [) 73,422) 2014! $! ! 675,753' 149,727' 59,200' 884,680' ! 36,470' 103,668' 3,507,811) 3,787,218' 3,581,233! 3,927,356' 3,790,740) 4,812,036' ! ! 393,303) 74,055) 800,000! 1,267,358) 1,267,358) ! ! 446,175' 85,315' @! 531,490' 531,490' 2,523,382) 4,280,546' ! ! ! ! 18! 36,672,676) 35,691,743' ! ! ! (36,613,172)) (33,894,500)' 2,463,878! 2,483,303! 2,523,382) 4,280,546' ! ! The'above'Consolidated'Statement'of'Financial'Position'should'be'read'in'conjunction'with'the'accompanying'notes'! ! ! ! ANNUAL!REPORT!2015! ! ! 13! CARAVEL!MINERALS!LIMITED! ! Consolidated!Statement!of!Changes!in!Equity! For!the!Year!Ended!30!June!2015! CONSOLIDATED!STATEMENT!OF!CHANGES!IN!EQUITY! ! Share!capital) Common!shares) Balance!as!at!beginning!of!year) Share!issuance!net!of!costs) Balance!as!at!end!of!year) Total!share!capital) ! Accumulated!loss) Balance!as!at!beginning!of!year) Loss!for!the!year!attributable!to!shareholders!of!the!Company) Total!accumulated!loss) ! Reserves! Share!based!payments!reserve! Balance!as!at!beginning!of!year! Share!based!compensation! Balance!as!at!end!of!year! Converted!option!reserve! Balance!as!at!beginning!of!year! Options!converted! Balance!as!at!end!of!year! Foreign!currency!translation! Balance!as!at!beginning!of!year! Currency!translation!differences!on!foreign!operations! Balance!as!at!end!of!year! AFS!reserve! Balance!as!at!beginning!of!year! Available@for@sale!investment! Balance!as!at!end!of!year! Total!reserves! ! Note' 18! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2015! $! ! ! 35,691,743) 980,933) 36,672,676) 36,672,676) 2014! $! ! ! 33,537,775' 2,153,968' 35,691,743' 35,691,743' ! ! ! (33,894,500)) (2,718,672)) (36,613,172)) ! (30,403,502)' (3,490,998)' (33,894,500)' ! ! ! ! 2,446,585! 2,300,436! 7,054! 146,149! 2,453,639! 2,446,585! ! ! 10,239! 10,239! [! @! 10,239! 10,239! ! 40,025! (40,025)! [! ! (13,546)! 13,546! [! ! 45,803! (5,778)! 40,025! ! (26,050)! 12,504! (13,546)! 2,463,878! 2,483,303! ! ! Total!comprehensive!loss!for!the!year! ! ! The'above'Consolidated'Statement'of'Changes'in'Equity'should'be'read'in'conjunction'with'the'accompanying'notes' '' ! ' (2,745,151)! (3,484,272)! ANNUAL!REPORT!2015! ! ! 14! CARAVEL!MINERALS!LIMITED! ! Consolidated!Statement!of!Cash!Flows! For!the!Year!Ended!30!June!2015! CONSOLIDATED!STATEMENT!OF!CASH!FLOWS! ) ! Note' Cash!flows!from!operating!activities) Interest!received) Interest!paid! Government!grants) Payments!to!suppliers!and!employees) Payments!for!exploration!and!evaluation!expenditure) Net!cash!used!in!operating!activities) 9(b)! ! Cash!flows!from!investing!activities) Proceeds!from!sale!of!tenements) Proceeds!from!sale!of!available@for@sale!investments) Proceeds!from!disposal!of!plant!and!equipment) Payments!for!plant!and!equipment) Net!cash!provided!by!investing!activities) ! Cash!flows!from!financing!activities) Proceeds!from!issue!of!shares) Share!issue!costs) Proceeds!from!borrowings! Net!cash!inflow!from!financing!activities) Decrease!in!cash!and!cash!equivalents!held) Cash!and!cash!equivalents!at!the!beginning!of!the!financial!year) ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2015! $! ! 12,861) (3,560)! 2014' $! ! 25,994' @! 509,353) 289,871' (1,350,274)) (1,811,178)' (1,215,582)) (2,020,039)' (2,047,202)) (3,515,352)' ! ! [) 41,471) 360) [! 41,831) ! ! ! ! 400,000' @' 75,808' (42,016)' 433,792' ! ! 720,000) 1,995,698' (43,968)) 800,000! (87,607)' @! 1,476,032! 1,908,091' (529,339)) (1,173,469)! 675,753) 1,849,222! Cash!and!cash!equivalents!at!the!end!of!the!financial!year) 9(a)! 146,414) 675,753! ! ! The'above'Consolidated'Statement'of'Cash'Flows'should'be'read'in'conjunction'with'the'accompanying'notes' ANNUAL!REPORT!2015! ! ! 15! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements! For!the!Year!Ended!30!June!2015! NOTES!TO!THE!CONSOLIDATED!FINANCIAL!STATEMENTS 1.! CORPORATE!INFORMATION! The!annual!report!of!Caravel!Minerals!Limited!for!the!year!ended!30!June!2015!was!authorised!for!issue!in!accordance! with!a!resolution!of!the!directors!on!16!September!2015.! Caravel!Minerals!Limited!is!a!company!limited!by!shares!incorporated!in!Australia!whose!shares!are!publicly!traded!on! the!Australian!Securities!Exchange.!! The!nature!of!operations!and!principal!activities!of!the!Company!are!described!in!the!Directors’!Report.! 2.! SUMMARY!OF!SIGNIFICANT!ACCOUNTING!POLICIES! a)! Basis!of!preparation! These!financial!statements!are!general!purpose!financial!statements!which!have!been!prepared!in!accordance!with!the! requirements!of!the!Corporations'Act'2001,!Australian!Accounting!Standards!and!other!authoritative!pronouncements! of!the!Australian!Accounting!Standards!Board.! Caravel!Minerals!Limited!is!a!for@profit!entity!for!the!purpose!of!preparing!the!financial!statements.! The!financial!report!has!been!prepared!on!a!historical!cost!basis.! The!financial!report!is!presented!in!Australian!dollars.! Compliance)with)IFRS! These! financial! statements! comply! with! Australian! Accounting! Standards! as! issued! by! the! Australian! Accounting! Standards! Board! and! International! Financial! Reporting! Standards! (IFRS)! as! issued! by! the! International! Accounting! Standards!Board.! b)! New!accounting!pronouncement! The! Company! has! adopted! the! following! new! and! revised! standards,! along! with! any! consequential! amendments,! effective!1!July!2014.!These!changes!have!been!made!in!accordance!with!the!applicable!transitional!provisions.! Interpretation!21!Accounting!for!Levies! •! •! AASB!2013@3!Amendments!to!AASB!136!–!Recoverable!Amount!Disclosures!for!Non@Financial!Assets! •! AASB!2013@4!Amendments!to!Australian!Accounting!Standards!–!Novation!of!Derivatives!and!Continuation!of! Hedge!Accounting! •! AASB!2014@1!Amendments!to!Australian!Accounting!Standards! ! None!of!the!new!Standards!and!amendments!to!Standards!that!are!mandatory!or!early!adopted!for!the!first!time!for!the! financial!year!beginning!1!July!2014!affected!any!of!the!amounts!recognised!in!the!current!period!or!any!prior!period! and!are!not!likely!to!affect!future!periods.!!Additionally,!they!did!not!significantly!affect!the!Group’s!accounting!policies! or!any!of!the!disclosures.!!! c)! Principles!of!consolidation! Subsidiaries' The! consolidated! financial! statements! incorporate! the! assets! and! liabilities! of! all! subsidiaries! of! Caravel! Minerals! Limited! (‘company’! or! ‘parent! entity’)! as! at! 30! June! 2015! and! the! results! of! all! subsidiaries! for! the! year! then! ended.! Caravel! Minerals! Limited! and! its! subsidiaries! together! are! referred! to! in! this! financial! report! as! the! group! or! the! consolidated!entity.! Subsidiaries! are! all! those! entities! over! which! the! consolidated! entity! has! control.! The! consolidated! entity! controls! an! entity!when!the!consolidated!entity!is!exposed!to,!or!has!rights!to,!variable!returns!from!its!involvement!with!the!entity! and! has! the! ability! to! affect! those! returns! through! its! power! to! direct! the! activities! of! the! entity.! Subsidiaries! are! fully! consolidated!from!the!date!on!which!control!is!transferred!to!the!consolidated!entity.!They!are!de@consolidated!from!the! date!that!control!ceases.! A!list!of!controlled!entities!is!contained!in!note!4!to!the!financial!statements.! Intercompany! transactions,! balances! and! unrealised! gains! on! transactions! between! group! companies! are! eliminated.! Unrealised! losses! are! also! eliminated! unless! the! transaction! provides! evidence! of! the! impairment! of! the! asset! transferred.! Accounting! policies! of! subsidiaries! have! been! changed! where! necessary! to! ensure! consistency! with! the! policies!adopted!by!the!group.! The! acquisition! of! subsidiaries! is! accounted! for! using! the! acquisition! method! of! accounting.! A! change! in! ownership! interest,! without! the! loss! of! control,! is! accounted! for! as! an! equity! transaction,! where! the! difference! between! the! consideration!transferred!and!the!book!value!of!the!share!of!the!non@controlling!interest!acquired!is!recognised!directly! in!equity!attributable!to!the!parent.! ! ! ANNUAL!REPORT!2015! ! ! 16! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES!(CONTINUED)! c)! Principles!of!consolidation!(continued)! Non@controlling!interest!in!the!results!and!equity!of!subsidiaries!are!shown!separately!in!the!statement!of!profit!or!loss! and! other! comprehensive! income,! statement! of! financial! position! and! statement! of! changes! in! equity! of! the! consolidated!entity.!Losses!incurred!by!the!consolidated!entity!are!attributed!to!the!non@controlling!interest!in!full,!even!if! that!results!in!a!deficit!balance.! Where! the! consolidated! entity! loses! control! over! a! subsidiary,! it! derecognises! the! assets! including! goodwill,! liabilities! and!non@controlling!interest!in!the!subsidiary!together!with!any!cumulative!translation!differences!recognised!in!equity.! The! consolidated! entity! recognises! the! fair! value! of! the! consideration! received! and! the! fair! value! of! any! investment! retained!together!with!any!gain!or!loss!in!profit!or!loss.! d)! Foreign!currency!transactions!and!balances! Functional'and'presentation'currency' Items! included! in! the! financial! statements! of! each! of! the! group’s! entities! are! measured! using! the! currency! of! the! primary! economic! environment! in! which! the! entity! operates! (‘the! functional! currency’).! The! consolidated! financial! statements! are! presented! in! Australian! dollars,! which! is! Caravel! Minerals! Limited’s! functional! and! presentation! currency.! Transaction'and'balances' Foreign!currency!transactions!are!translated!into!functional!currency!using!the!exchange!rates!prevailing!at!the!date!of! the! transaction.! Foreign! currency! monetary! items! are! translated! at! the! year@end! exchange! rate.! Non@monetary! items! measured! at! historical! cost! continue! to! be! carried! at! the! exchange! rate! at! the! date! of! the! transaction.! Non@monetary! items!measured!at!fair!value!are!reported!at!the!exchange!rate!at!the!date!when!fair!values!were!determined.! Exchange!differences!arising!on!the!translation!of!monetary!items!are!recognised!in!the!profit!or!loss.! Exchange! differences! arising! on! the! translation! of! non@monetary! items! are! recognised! directly! in! equity! to! the! extent! that! the! gain! or! loss! is! directly! recognised! in! equityp! otherwise! the! exchange! difference! is! recognised! in! the! profit! or! loss.! Group'companies' The! financial! results! and! position! of! foreign! operations! whose! functional! currency! is! different! from! the! Group’s! presentation!currency!are!translated!as!follows:! @! @! @! assets!and!liabilities!are!translated!at!year@end!exchange!rates!prevailing!at!that!reporting!datep! income!and!expenses!are!translated!at!average!exchange!rates!for!the!periodp!and! retained!earnings!are!translated!at!the!exchange!rates!prevailing!at!the!date!of!the!transaction.! Exchange!differences!arising!on!translation!of!foreign!operations!are!transferred!directly!to!the!Group’s!foreign!currency! translation! reserve! in! the! statement! of! financial! position.! These! differences! are! recognised! in! the! profit! or! loss! in! the! period!in!which!the!operation!is!disposed.! e)! Investments!and!other!financial!assets! Classification' The! group! classifies! its! financial! assets! in! the! following! categories:! loans! and! receivables! and! available@for@sale! financial! assets.! The! classification! depends! on! the! purpose! for! which! the! investments! were! acquired.! Management! determines!the!classification!of!its!investments!at!initial!recognition.! Loans'and'receivables' Loans!and!receivables!are!non@derivative!financial!assets!with!fixed!or!determinable!payments!that!are!not!quoted!in!an! active! market.! They! are! included! in! current! assets,! except! for! those! with! maturities! greater! than! 12! months! after! the! reporting!period!which!are!classified!as!non@current!assets.! Available\for\sale'financial'assets' Available@for@sale! financial! assets,! comprising! principally! marketable! equity! securities,! are! non@derivatives! that! are! either! designated! in! this! category! or! not! classified! in! any! of! the! other! categories.! They! are! included! in! non@current! assets!unless!the!investment!matures!or!management!intends!to!dispose!of!the!investment!within!12!months!of!the!end! of!the!reporting!period.!Investments!are!designated!as!available@for@sale!if!they!do!not!have!fixed!maturities!and!fixed!or! determinable!payments!and!management!intends!to!hold!them!for!the!medium!to!long!term.! ! ! ANNUAL!REPORT!2015! ! ! 17! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES!(CONTINUED)! e)! Investments!and!other!financial!assets!(continued)! Measurement' At! initial! recognition,! the! group! measures! a! financial! asset! at! its! fair! value! plus! transaction! costs! that! are! directly! attributable!to!the!acquisition!of!the!financial!asset.! Loans!and!receivables!and!held@to@maturity!investments!are!subsequently!carried!at!amortised!cost!using!the!effective! interest!method.! Available@for@sale!financial!assets!are!subsequently!carried!at!fair!value.!Gains!or!losses!arising!from!changes!in!the!fair! value!are!recognised!in!other!comprehensive!income.! Fair'value' Fair! value! is! determined! based! on! current! bid! prices! for! all! quoted! investments.! Valuation! techniques! are! applied! to! determine! the! fair! value! for! all! unlisted! securities! held! at! cost! less! impairment,! including! recent! arm’s! length! transactions,!reference!to!similar!instruments!and!option!pricing!models.! Impairment'of'assets' The! consolidated! entity! assesses! at! each! reporting! date! whether! there! is! objective! evidence! that! a! financial! asset! or! group! of! financial! assets! is! impaired.! ! In! the! case! of! equity! securities! classified! as! available@for@sale,! a! significant! or! prolonged! decline! in! the! fair! value! of! a! security! below! its! cost! is! considered! as! an! indicator! that! the! securities! are! impaired.! If! any! such! evidence! exists! for! available@for@sale! financial! assets,! the! cumulative! loss! –! measured! as! the! difference! between! the! acquisition! cost! and! the! current! fair! value,! less! any! impairment! loss! on! that! financial! asset! previously! recognised! in! profit! or! loss! –! is! removed! from! equity! and! included! in! profit! or! loss.! Impairment! losses! recognised! in! the! statement! of! comprehensive! income! on! equity! instruments! classified! as! available@for@sale! are! not! reversed!through!profit!or!loss.! Recognition'and'derecognition' Regular! purchases! and! sales! of! financial! assets! are! recognised! on! trade@date! –! the! date! on! which! the! consolidated! entity! commits! to! purchase! or! sell! the! asset.! Investments! are! initially! recognised! at! fair! value! plus! transaction! costs.! Financial!assets!are!derecognised!when!the!rights!to!receive!cash!flows!from!the!financial!assets!have!expired!or!have! been!transferred!and!the!consolidated!entity!has!transferred!substantially!all!the!risks!and!reward!of!ownership.!When! the!securities!classified!as!available@for@sale!are!sold,!the!accumulated!fair!value!adjustments!recognised!in!equity!are! included!in!profit!or!loss!as!gains!and!losses!for!investment!securities.! f)! Exploration!and!evaluation!expenditure! Exploration! and! evaluation! costs! are! expensed! as! incurred! as! an! operating! cost! of! the! Group.! Costs! related! to! the! acquisition! of! properties! that! contain! mineral! resources! are! capitalised! and! allocated! separately! to! specific! areas! of! interest.!These!costs!are!capitalised!until!the!viability!of!the!area!of!interest!is!determined.! g)! Plant!and!equipment! Plant!and!equipment!is!stated!at!historical!cost!less!accumulated!depreciation!and!any!accumulated!impairment!losses.! 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!charged!to!the!statement!of!profit!and!loss!and!other! comprehensive!income!during!the!financial!period!in!which!they!are!incurred.! Depreciation' Depreciation!is!calculated!on!either!the!straight@line!basis!or!diminishing!value!basis!over!their!useful!lives!to!the!Group! commencing!from!the!time!the!asset!is!held!ready!for!use.!The!depreciation!rates!used!are!as!follows:! ! Plant!and!equipment! ! Exploration!equipment! ! Vehicles!! Leasehold!improvements! ! Computer!equipment!and!software! ! ! ! ! ! ! 30%! 25%! 30%! 25%! 40%! ! The!assets’!residual!values,!useful!lives!and!depreciation!methods!are!reviewed,!and!adjusted!if!appropriate,!at!each! reporting!date.! Derecognition' Gains! and! losses! on! disposals! are! determined! by! comparing! proceeds! with! the! carrying! amount.! These! gains! and! losses!are!included!in!the!Statement!of!profit!or!loss!and!other!comprehensive!income.! ! ANNUAL!REPORT!2015! ! ! 18! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES!(CONTINUED)! h)! Impairment!of!assets! Caravel!Minerals!Limited!conducts!an!annual!internal!review!of!asset!values,!which!is!used!as!a!source!of!information! to!assess!for!any!indicators!of!impairment.!External!factors,!such!as!changes!in!expected!future!processes,!technology! and! economic! conditions,! are! also! monitored! to! assess! for! indicators! of! impairment.! If! any! indication! of! impairment! exists,!an!estimate!of!the!asset’s!recoverable!amount!is!calculated.! An!impairment!loss!is!recognised!for!the!amount!by!which!the!asset’s!carrying!value!exceeds!its!recoverable!amount.! Recoverable! amount! is! the! higher! of! an! asset’s! fair! value! less! costs! to! sell! and! value! in! use.! For! the! purposes! of! assessing!impairment,!assets!are!grouped!at!the!lowest!levels!for!which!there!are!separately!identifiable!cash!inflows! that! are! largely! independent! of! the! cash! inflows! from! other! assets! or! groups! of! assets! (cash@generating! units).! Non@ financial! assets! other! than! goodwill! that! suffered! an! impairment! are! tested! for! possible! reversal! of! the! impairment! whenever!events!or!changes!in!circumstances!indicate!that!the!impairment!may!have!reversed.! i)! Revenue!recognition) Revenue!is!recognised!to!the!extent!that!it!is!probable!that!economic!benefits!will!flow!to!the!Group!and!the!revenue! can! be! reliably! measured.! Revenue! is! measured! at! the! fair! value! of! the! consideration! received! or! receivable.! The! following!specific!recognition!criteria!must!also!be!met!before!revenue!is!recognised:! Interest' Interest!revenue!is!recognised!as!the!interest!accrues!(using!the!effective!interest!method,!which!is!the!rate!that!exactly! discounts!estimated!future!cash!receipts!through!the!expected!life!of!the!financial!instrument)!to!the!net!carrying!value! amount!of!the!financial!asset.! Government'Grants' Government!grant!revenue!is!measured!at!the!fair!value!of!the!consideration!received!or!receivable.!!! j)! Income!tax! The!income!tax!expense!for!the!period!is!the!tax!payable!on!the!current!period’s!taxable!income!based!on!the!national! income!tax!rate!for!each!jurisdiction!adjusted!by!changes!in!deferred!tax!assets!and!liabilities!attributable!to!temporary! differences!between!the!tax!bases!of!assets!and!liabilities!and!their!carrying!amounts!in!the!financial!statements,!and!to! unused!tax!losses.! Deferred!tax!assets!and!liabilities!are!recognised!for!temporary!differences!at!the!tax!rates!expected!to!apply!when!the! assets!are!recovered!or!liabilities!are!settled,!based!on!those!tax!rates!which!are!enacted!or!substantively!enacted!for! each! jurisdiction.! The! relevant! tax! rates! are! applied! to! the! cumulative! amounts! of! deductible! and! taxable! temporary! differences!to!measure!the!deferred!tax!asset!or!liability.!!An!exception!is!made!for!certain!temporary!differences!arising! from!the!initial!recognition!of!an!asset!or!a!liability.!No!deferred!tax!asset!or!liability!is!recognised!in!relation!to!these! temporary!differences!if!they!arose!on!goodwill!or!in!a!transaction,!other!than!a!business!combination,!that!at!the!time! of!the!transaction!did!not!affect!either!accounting!profit!or!taxable!profit!or!loss.! Deferred!tax!assets!are!recognised!for!deductible!temporary!differences!and!unused!tax!losses!only!if!it!is!probable!that! future!taxable!amounts!will!be!available!to!utilise!those!temporary!differences!and!losses.! The!carrying!amount!of!deferred!income!tax!assets!is!reviewed!at!each!reporting!date!and!reduced!to!the!extent!that!it! is!no!longer!probable!that!sufficient!taxable!profit!will!be!available!to!allow!all!or!part!of!the!deferred!income!tax!asset!to! be!utilised.! Unrecognised!deferred!income!tax!assets!are!reassessed!at!each!reporting!date!and!are!recognised!to!the!extent!that!it! has!become!probable!that!future!taxable!profit!will!allow!the!deferred!tax!asset!to!be!recovered.! Current!and!deferred!tax!balances!attributable!to!amounts!recognised!directly!in!equity!are!also!recognised!directly!in! equity.! Deferred!tax!assets!and!deferred!tax!liabilities!are!offset!only!if!a!legally!enforceable!right!exists!to!set!off!current!tax! assets! against! tax! liabilities! and! the! deferred! tax! liabilities! relate! to! the! same! taxable! entity! and! the! same! taxation! authority.! k)! Cash!and!cash!equivalents! “Cash!and!cash!equivalents”!includes!cash!on!hand,!deposits!held!at!call!with!financial!institutions!and!other!short@term! highly!liquid!investments!that!are!readily!convertible!to!known!amounts!of!cash!and!which!are!subject!to!an!insignificant! risk!of!changes!in!value.!For!the!purposes!of!the!Statement!of!Cash!Flows,!cash!and!cash!equivalents!consist!of!cash! and!cash!equivalents!as!defined!above,!net!of!any!bank!overdrafts.!! ! ! ANNUAL!REPORT!2015! ! ! 19! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES!(CONTINUED)! l)! Trade!and!other!receivables! Trade! receivables! are! initially! recognised! and! carried! at! original! invoice! amount! less! provision! for! impairment.! Trade! receivables! are! due! for! settlement! no! more! than! 30! days! from! the! date! of! recognition.! A! provision! for! impairment! is! made! when! there! is! objective! evidence! that! the! Group! will! not! be! able! to! collect! the! debts.! Bad! debts! are! written! off! when!identified.! Financial'assets'carried'at'amortised'cost'' If! there! is! objective! evidence! that! an! impairment! loss! on! loans! and! receivables! carried! at! amortised! cost! has! been! incurred,! the! amount! of! the! loss! is! measured! as! the! difference! between! the! asset’s! carrying! amount! and! the! present! value! of! estimated! future! cash! flows! (excluding! future! credit! losses! that! have! not! been! incurred)! discounted! at! the! financial! asset’s! original! effective! interest! rate! (i.e.! the! effective! interest! rate! computed! at! initial! recognition).! The! carrying!amount!of!the!asset!is!reduced!either!directly!or!through!use!of!an!allowance!account.!The!amount!of!the!loss! is!recognised!in!profit!or!loss.! m)! Leases! The!determination!of!whether!an!arrangement!is!or!contains!a!lease!is!based!on!the!substance!of!the!arrangement!and! requires! an! assessment! of! whether! the! fulfilment! of! the! arrangement! is! dependent! on! the! use! of! a! specific! asset! or! assets!and!the!arrangement!conveys!a!right!to!use!the!asset.! Company'as'a'lessee' Operating! lease! payments,! where! substantially! all! the! risk! and! benefits! remain! with! the! lessor,! are! recognised! as! an! expense! in! the! statement! of! profit! and! loss! and! other! comprehensive! income! on! a! straight@line! basis! over! the! lease! term.! Operating! lease! incentives! are! recognised! as! a! liability! when! received! and! subsequently! reduced! by! allocating! lease!payments!between!rental!expense!and!reduction!of!the!liability.! n)! Trade!and!other!payables! Trade!and!other!payables!are!carried!at!amortised!cost!and!represent!liabilities!for!the!goods!and!services!provided!to! the!Group!prior!to!the!end!of!the!financial!period!that!are!unpaid!and!arise!when!the!Group!becomes!obliged!to!make! future!payments!in!respect!of!the!purchase!of!these!goods!and!services.!The!amounts!are!unsecured!and!are!usually! paid!within!30!days.! o)! Provisions!and!employee!benefits! Provisions!are!recognised!when!the!Group!has!a!present!obligation!(either!legal!or!constructive)!as!a!result!of!a!past! event,!it!is!probable!that!an!outflow!of!resources!embodying!economic!benefits!will!be!required!to!settle!the!obligation! and!a!reliable!estimate!can!be!made!of!the!amount!of!the!obligation.! Provisions!are!measured!at!the!present!value!of!management’s!best!estimate!of!the!expenditure!required!to!settle!the! present!obligation!at!the!reporting!date!using!a!discounted!cash!flow!methodology.!The!risks!specific!to!the!provision! are!factored!into!the!cash!flows!and!as!such!a!corporate!bond!rate!relative!to!the!expected!life!of!the!provision!is!used! as!a!discount!rate.!The!increase!in!the!provision!resulting!from!the!passage!of!time!is!recognised!in!finance!costs.! Employee'leave'benefits' Liabilities!for!wages!and!salaries,!including!non@monetary!benefits,!annual!leave!and!accumulating!sick!leave!expected! to!be!settled!within!12!months!of!the!reporting!date!are!recognised!in!respect!of!employees’!services!up!to!the!reporting! date.! They! are! measured! at! the! amounts! expected! to! be! paid! when! the! liabilities! are! settled.! Expenses! for! non@ accumulating!sick!leave!are!recognised!when!the!leave!is!taken!and!are!measured!at!the!rates!paid!or!payable.! p)! Share!based!payments! The!Group!provides!benefits!to!Directors,!employees,!consultants!and!other!advisors!of!the!Group!in!the!form!of!share@ based! payments,! whereby! the! Directors,! employees,! consultants! and! other! advisors! render! services! in! exchange! for! shares!or!rights!over!shares!(equity@settled!transactions).! The!cost!of!these!equity@settled!transactions!is!measured!by!reference!to!the!fair!value!of!the!equity!instruments!at!the! date!at!which!they!are!granted.!The!fair!value!is!determined!by!an!external!valuer!using!a!Black@Scholes!model.! In!valuing!equity@settled!transactions,!no!account!is!taken!of!any!performance!conditions,!other!than!conditions!linked!to! the!market!price!of!the!shares!of!the!Company!if!applicable.! The!cost!of!equity@settled!transactions!is!recognised,!together!with!a!corresponding!increase!in!equity,!over!the!period! in!which!the!performance!and/or!service!conditions!are!fulfilled,!ending!on!the!date!on!which!the!relevant!recipient! becomes!fully!entitled!to!the!award!(the!vesting!period).! ! ! ANNUAL!REPORT!2015! ! ! 20! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES!(CONTINUED)! p)! Share!based!payments!(continued)) The!cumulative!expense!recognised!for!equity@settled!transactions!at!each!reporting!date!until!vesting!date!reflects!(i)! the! extent! to! which! the! vesting! period! has! expired! and! (ii)! the! Company’s! best! estimate! of! the! number! of! equity! instruments!that!will!ultimately!vest.!No!adjustment!is!made!for!the!likelihood!of!market!performance!conditions!being! met!as!the!effect!of!these!conditions!is!included!in!the!determination!of!fair!value!at!grant!date.!The!statement!of!profit! and! loss! and! other! comprehensive! income! charge! or! credit! for! a! period! represents! the! movement! in! cumulative! expense!recognised!as!at!the!beginning!and!end!of!that!period.! No! expense! is! recognised! for! awards! that! do! not! ultimately! vest,! except! for! awards! where! vesting! is! only! conditional! upon!a!market!condition.! If!the!terms!of!an!equity@settled!award!are!modified,!as!a!minimum!an!expense!is!recognised!as!if!the!terms!had!not! been!modified.!In!addition,!an!expense!is!recognised!for!any!modification!that!increases!the!total!fair!value!of!the!share@ based!payment!arrangement,!or!is!otherwise!beneficial!to!the!recipient,!as!measured!at!the!date!of!modification.! If!an!equity@settled!award!is!cancelled,!it!is!treated!as!if!it!had!vested!on!the!date!of!cancellation,!and!any!expense!not! yet!recognised!for!the!award!is!recognised!immediately.!However,!if!a!new!award!is!substituted!for!the!cancelled!award! and!designated!as!a!replacement!award!on!the!date!that!it!is!granted,!the!cancelled!and!new!award!are!treated!as!if! they!were!a!modification!of!the!original!award,!as!described!in!the!previous!paragraph.! The!dilutive!effect,!if!any,!of!outstanding!options!is!reflected!as!additional!share!dilution!in!the!computation!of!earnings! per!share!(see!Note!6).! Under!the!employee!share!scheme,!shares!are!issued!to!employees!by!providing!interest!free!loans!and!will!vest!over! the! restriction! period.! The! shares! are! held! by! the! Trust! until! the! loan! is! repaid.! Within! the! loan! period! the! employee! must! have! paid! off! the! loan! balance,! at! which! point! the! shares! are! delivered! to! the! employee,! or! surrendered! the! shares.!Surrender!of!the!shares!by!the!employee!after!the!restriction!period,!is!treated!as!discharging!any!outstanding! amount!on!the!loan,!irrespective!of!the!value!of!the!shares.! The!effect!of!such!an!arrangement!is!equivalent!to!an!option!with!a!strike!price!per!share!equal!to!the!share!price!on! grant!date.! q)! Contributed!equity! Ordinary!shares!are!classified!as!equity.!Issued!and!paid!up!capital!is!recognised!at!the!fair!value!of!the!consideration! received!by!the!Company.! Incremental!costs!directly!attributable!to!the!issue!of!new!shares!or!options!are!shown!in!equity!as!a!deduction,!net!of! tax,!from!the!proceeds.! r)! Earnings!per!share!(EPS)! Basic!earnings!per!share!is!calculated!by!dividing!the!profit/loss!attributable!to!equity!holders!of!the!Group,!excluding! any! costs! of! servicing! equity! other! than! ordinary! shares,! by! the! weighted! average! number! of! ordinary! shares! outstanding!during!the!period,!adjusted!for!bonus!elements!in!ordinary!shares!issued!during!the!period.! Diluted!earnings!per!share!adjusts!the!figures!used!in!the!determination!of!basic!earnings!per!share!to!take!into!account! the! after! tax! effect! of! interest! and! other! financing! costs! associated! with! 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.! s)! Goods!and!services!tax! Revenues,!expenses!and!assets!are!recognised!net!of!the!amount!of!GST!except:! •! when! the! GST! incurred! on! a! purchase! of! goods! and! services! is! not! recoverable! from! the! taxation! authority,! in! which!case!the!GST!is!recognised!as!part!of!the!cost!of!acquisition!of!the!asset!or!as!part!of!the!expense!item!as! applicablep!and! receivables!and!payables!are!stated!with!the!amount!of!GST!included.! •! The! net! amount! of! GST! recoverable! from,! or! payable! to,! the! taxation! authority! is! included! as! part! of! receivables! or! payables!in!the!statement!of!financial!position.! Cash! flows! are! included! in! the! Statement! of! Cash! Flows! on! a! gross! basis! and! the! GST! components! of! cash! flows! arising! from! investing! and! financing! activities,! which! are! recoverable! from,! or! payable! to,! the! taxation! authority,! are! classified!as!operating!cash!flows.! Commitments!and!contingencies!are!disclosed!net!of!the!amount!of!GST!recoverable!from,!or!payable!to,!the!taxation! authority.! ! ANNUAL!REPORT!2015! ! ! 21! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES!(CONTINUED)! t)! Segment!reporting! AASB! 8! requires! a! management! approach! under! which! segment! information! is! presented! on! the! same! basis! as! that! used! for! internal! reporting! purposes.! Operating! segments! are! now! reported! in! a! manner! that! is! consistent! with! the! internal!reporting!to!the!Chief!Executive!Officer!(“CEO”).!! u)! Government!grants! Grants!from!the!government!are!recognised!at!their!fair!value!where!there!is!a!reasonable!assurance!that!the!grant!will! be!received!and!the!Company!will!comply!with!all!attached!conditions.! v)! Non[current!assets!(or!disposal!groups)!held!for!sale!and!discontinued!operations! Non@current! assets! (or! disposal! groups)! are! classified! as! held! for! sale! if! their! carrying! amount! will! be! recovered! principally!through!a!sale!transaction!rather!than!through!continuing!use!and!a!sale!is!considered!highly!probable.!They! are!measured!at!the!lower!of!their!carrying!amount!and!fair!value!less!costs!to!sell,!except!for!assets!such!as!deferred! tax!assets,!assets!arising!from!employee!benefits,!financial!assets!and!investment!property!that!are!carried!at!fair!value! and!contractual!rights!under!insurance!contracts,!which!are!specifically!exempt!from!this!requirement.! An!impairment!loss!is!recognised!for!any!initial!or!subsequent!write@down!of!the!asset!(or!disposal!group)!to!fair!value! less! costs! to! sell.! A! gain! is! recognised! for! any! subsequent! increases! in! fair! value! less! costs! to! sell! of! an! asset! (or! disposal!group),!but!not!in!excess!of!any!cumulative!impairment!loss!previously!recognised.!A!gain!or!loss!not!previously! recognised!by!the!date!of!the!sale!of!the!non@current!asset!(or!disposal!group)!is!recognised!at!the!date!of!derecognition.! Non@current! assets! (including! those! that! are! part! of! a! disposal! group)! are! not! depreciated! or! amortised! while! they! are! classified!as!held!for!sale.!Interest!and!other!expenses!attributable!to!the!liabilities!of!a!disposal!group!classified!as!held! for!sale!continue!to!be!recognised.!! Non@current!assets!classified!as!held!for!sale!and!the!assets!of!a!disposal!group!classified!as!held!for!sale!are!presented! separately!from!the!other!assets!in!the!statement!of!financial!position.!The!liabilities!of!a!disposal!group!classified!as!held! for!sale!are!presented!separately!from!other!liabilities!in!the!balance!sheet.!! A!discontinued!operation!is!a!component!of!the!entity!that!has!been!disposed!of!or!is!classified!as!held!for!sale!and!that! represents!a!separate!major!line!of!business!or!geographical!area!of!operations,!is!part!of!a!single!co@ordinated!plan!to! dispose!of!such!a!line!of!business!or!area!of!operations,!or!is!a!subsidiary!acquired!exclusively!with!a!view!to!resale.!The! results!of!discontinued!operations!are!presented!separately!in!the!income!statement.! w)! Borrowings! Borrowings! are! initially! recognised! at! fair! value,! net! of! transaction! costs! incurred.! Borrowings! are! subsequently! measured! at! amortised! cost.! Any! difference! between! the! proceeds! (net! of! transaction! costs)! and! the! redemption! amount!is!recognised!in!profit!or!loss!over!the!period!of!the!borrowings!using!the!effective!interest!method.! Certain! convertible! notes! issued! by! the! Group! which! include! embedded! derivatives! (option! to! convert! to! variable! number! of! shares! in! the! Group)! are! recognised! as! financial! liabilities! at! fair! value! through! profit! or! loss.! On! initial! recognition,!the!fair!value!of!the!convertible!note!will!equate!to!the!proceeds!received!and!subsequently!the!liability!is! measured!at!fair!value!at!each!reporting!period!until!settlement.!!The!fair!value!movements!are!recognised!on!the!profit! and!loss!as!finance!costs.! x)! Going!Concern! This! report! is! prepared! on! the! going! concern! basis! which! assumes! the! continuity! of! normal! business! activity! and! the! realisation!of!assets!and!settlement!of!liabilities!in!the!normal!course!of!business.! The!Group!incurred!a!net!loss!of!$2,718,672!during!the!year!ended!30!June!2015!and!as!of!that!date!the!Group!had!net! assets!of!$2,523,282!(2014:!$4,280,546)!including!cash!and!cash!equivalents!of!$146,414!(2014:!$675,753).!! Subsequent! to! balance! date! the! company! has! completed! a! private! placement! which! raised! gross! proceeds! of! $1,451,940.! Additionally,! the! FQM! Farm@in! was! approved! by! shareholders! on! 27! August! 2015! which! initiated! the! conversion!of!the!$600,000!FQM!Convertible!Loan!to!shares!on!that!date.! The!Directors!believe!there!are!sufficient!funds!to!meet!the!Group’s!working!capital!requirements!and!as!at!the!date!of! this!report!the!Group!believes!it!can!meet!all!liabilities!as!and!when!they!fall!due.!! The!Directors!have!reviewed!the!business!outlook!and!the!assets!and!liabilities!of!the!Group!and!are!of!the!opinion!that! the! going! concern! basis! of! accounting! is! appropriate! as! they! believe! the! Group! will! continue! to! be! successful! in! securing!additional!funds!as!and!when!the!need!to!raise!funds!arises.! ! ! ANNUAL!REPORT!2015! ! ! 22! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 2.! SIGNIFICANT!ACCOUNTING!POLICIES!(CONTINUED)! y)! New!accounting!standards!and!interpretations!that!are!not!yet!mandatory! Certain! new! accounting! standards! and! interpretations! have! been! published! that! are! not! mandatory! for! 30!June! 2015! reporting!periods!and!have!not!been!early!adopted!by!the!group.!The!group’s!assessment!of!the!impact!of!these!new! standards!and!interpretations!is!set!out!below.! (i)' AASB'9'Financial'Instruments' This! standard! addresses! the! classification,! measurement! and! derecognition! of! financial! assets! and! financial! liabilities! and! introduces! new! rules! for! hedge! accounting.! In! December! 2014,! the! AASB! made! further! changes! to! the! classification! and! measurement! rules! and! also! introduced! a! new! impairment! model.! These! latest! amendments! now! complete!the!financial!instruments!standard.!The!consolidated!entity!will!adopt!this!standard!from!1!July!2018!and!there! will!be!no!significant!impact!on!the!group.! (ii)! AASB'15'Revenue'from'Contracts'with'Customers'' This!new!standard!addresses!the!recognition!of!revenue!and!will!replace!AASB!118!which!covers!contracts!for!goods! and! services! and! AASB! 111! which! covers! construction! contracts.! The! new! standard! is! based! on! the! principle! that! revenue!is!recognised!when!control!of!a!good!or!service!transfers!to!a!customer,!so!the!notion!of!control!replaces!the! existing!notion!of!risks!and!rewards.!The!standard!permits!a!modified!retrospective!approach!for!the!adoption.!Under! this!approach!entities!will!recognise!any!applicable!transitional!adjustments!in!retained!earnings!on!the!date!of!the!initial! application!(i.e.!1!July!2018)!without!restating!the!comparative!period.!Entities!will!only!need!to!apply!the!new!rules!to! contracts!that!are!not!completed!as!of!the!date!of!initial!application.!The!group!will!adopt!the!standard!from!1!July!2018! and!the!impact!of!its!adoption!is!yet!to!be!assessed!by!the!consolidated!entity.! (iii)' AASB'2015\2'Amendments'to'AASB'101'–'Presentation'of'Financial'Statements' These!amendments!are!designed!to!further!encourage!companies!to!apply!professional!judgment!in!determining!what! information! to! disclose! in! the! financial! statements.! The! amendments! also! clarify! that! companies! should! use! professional! judgment! in! determining! where! and! in! what! order! in! formation! is! to! be! presented! in! the! financial! disclosures.!The!adoption!of!these!amendments!from!1!July!2016!will!not!have!a!significant!impact!on!the!group.! 3.! !SIGNIFICANT!ACCOUNTING!JUDGEMENTS,!ESTIMATES!AND!ASSUMPTIONS! The!preparation!of!the!financial!statements!requires!management!to!make!judgements,!estimates!and!assumptions!that! affect! the! reported! amounts! in! the! financial! statements.! Management! continually! evaluates! its! judgements! and! estimates! in! relation! to! assets,! liabilities,! contingent! liabilities,! revenue! and! expenses.! Management! bases! its! judgements!and!estimates!on!historical!experience!and!on!other!various!factors!it!believes!to!be!reasonable!under!the! circumstances,! the! results! of! which! form! the! basis! of! the! carrying! values! of! assets! and! liabilities! that! are! not! readily! apparent! from! other! sources.! Actual! results! may! differ! from! these! estimates! under! different! assumptions! and! conditions.!! Management! has! identified! the! following! critical! accounting! policies! for! which! significant! judgements,! estimates! and! assumptions!are!made.!Actual!results!may!differ!from!these!estimates!under!different!assumptions!and!conditions!and! may!materially!affect!financial!results!or!the!financial!position!reported!in!future!periods.! Further! details! of! the! nature! of! these! assumptions! and! conditions! may! be! found! in! the! relevant! notes! to! the! financial! statements.! Significant)accounting)judgements) Determination'of'mineral'resources' The! determination! of! mineral! resources! impacts! the! accounting! for! asset! carrying! values.! Caravel! Minerals! Limited! estimates!its!mineral!resources!in!accordance!with!the!Australasian'Code'for'Reporting'of'Exploration'Results,'Mineral' Resources'and'Ore'Reserves'2012!(the!‘JORC’!Code).!The!information!on!mineral!resources!was!prepared!by!or!under! the!supervision!of!Competent!Persons!as!defined!in!the!JORC!Code.!The!amounts!presented!are!based!on!the!mineral! resources!determined!under!the!JORC!Code.! There!are!numerous!uncertainties!inherent!in!estimating!mineral!resources,!and!assumptions!that!are!valid!at!the!time! of!estimation!may!change!significantly!when!new!information!becomes!available.! ! ! ANNUAL!REPORT!2015! ! ! 23! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 3.! SIGNIFICANT!ACCOUNTING!JUDGEMENTS,!ESTIMATES!AND!ASSUMPTIONS!(CONTINUED)! Significant)accounting)estimates)and)assumptions) Impairment'of'capitalised'exploration'and'evaluation'expenditure' It! is! the! Group’s! policy! to! capitalise! costs! related! to! the! acquisition! of! properties! that! contain! mineral! resources.! The! future! recoverability! of! capitalised! exploration! and! evaluation! expenditure! is! dependent! upon! a! number! of! factors,! including! whether! the! Group! decides! to! exploit! the! related! lease! itself! or,! if! not,! whether! it! successfully! recovers! the! related!exploration!and!evaluation!asset!through!sale.! Factors!that!could!impact!future!recoverability!include!the!level!of!reserves!and!resources,!future!technological!changes! which!could!impact!the!cost!of!mining,!future!legal!changes!(including!changes!to!environmental!restoration!obligations)! and!changes!to!commodity!prices.! To!the!extent!that!capitalised!exploration!and!evaluation!expenditure!is!determined!not!to!be!recoverable!in!the!future,! profits!and!net!assets!will!be!reduced!in!the!period!in!which!the!determination!is!made.! Share\based'payment'transactions' The!Group!measures!the!cost!of!equity@settled!share@based!payment!transactions!with!employees!by!reference!to!the! fair!value!of!the!equity!instruments!at!the!grant!date.!The!fair!value!is!determined!by!the!Company!Secretary!using!a! Black@Scholes!model,!with!the!assumptions!detailed!in!Note!20.!The!accounting!estimates!and!assumptions!relating!to! equity@settled!share@based!payments!would!have!no!impact!on!the!carrying!amounts!of!assets!and!liabilities!within!the! next!annual!reporting!period!but!may!impact!expenses!and!equity.! Valuation'of'performance'shares'issued' During! the! year! ended! 30! June! 2011,! the! Company! entered! into! an! agreement! with! Gledich! Associates! Pty! Ltd! to! purchase! certain! tenements.! Consideration! for! the! tenements! included! 2,000,000! performance! shares! (issued! 2! September! 2011).! The! performance! shares! are! subject! to! performance! milestones! (as! disclosed! in! Note! 18).! The! Company!has!valued!the!performance!shares!at!$nil!at!30!June!2015!as!achievement!of!the!performance!milestones! are!not!probable.!If!the!performance!milestones!are!not!met!by!30!April!2016,!the!2,000,000!performance!shares!are! converted!into!1!ordinary!share!on!that!date.! 4.! SUBSIDIARIES! The! consolidated! financial! statements! incorporate! the! assets,! liabilities! and! results! of! the! following! subsidiaries! in! accordance!with!the!accounting!policy!described!in!note!2:! ! ! ! Name!of!entity! Country!of! incorporation! Class!of! shares! Date!of! incorporation! Equity! holding!30! June!2014! &!2015! Caravel!Resources!Netherlands!Cooperatief!U.A.! Netherlands! Ordinary! 99.999%! 16!July!2012! Quadrio!Resources!Pty!Ltd! Caravel!Employee!Share!Plan!Pty!Ltd! Australia! Australia! Ordinary! 100%! 11!June!1985! Ordinary! 100%! 13!March!2013! ! ANNUAL!REPORT!2015! ! ! 24! CARAVEL!MINERALS!LIMITED! ! ' ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! 5.! REVENUE!AND!EXPENSES! (a)'Revenue'from'continuing'operations' Interest!revenue! Profit!on!disposal!of!plant!and!equipment! Other!revenue! ! (b)'Other'income' Government!EIS!Grant! Government!R&D!rebate! ! (c)'Employee'expenses) Directors!Fees) Salaries!and!wages) Termination!payments) Superannuation) Leave!provisions) Share!based!payments!expense) ! (d)'Other'share'based'payments' SBP!consultants!–!included!in!Administration!expenses! ! SBP!finance!costs!–!included!in!Finance!expenses!! ! SBP!drilling!contractors!–!included!in!Exploration!expenses!! 6.! LOSS!PER!SHARE! ! 2015! $! 2014! $! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 12,861! 360! [! 13,221! ! 196,884! 312,469! 509,353! (92,817)! (817,377)) [) (86,468)! 11,260! (7,054)) (992,456)) ! [! ! 12,000! ! 292,901! ! 25,994' 73,869' 9,537' 109,400' ! @! 289,871! 289,871! (99,099)' (841,603)' (17,229)' (132,992)' 14,872' (135,949)' (1,212,000)' ! 6,600! ! @! ! 249,477! The!following!reflects!the!income!and!share!data!used!in!the!calculations!of!basic!and!diluted!loss!per!share:! Net!loss!used!in!calculating!basic!and!diluted!loss!per!share:! From!continuing!operations! From!discontinued!operations! ! ! ! Weighted!average!number!of!ordinary!shares!and!potential!ordinary!shares! used!in!calculating!basic!earnings!per!share' Effect!of!dilutive!securities!(see!below)' ! ! ! ! ! (2,801,837)! (3,393,359)! 83,165! (97,639)! ! ! ! ! ! 2015! No.!of!Shares' 2014! No.!of!Shares! 711,202,448! 572,147,399' [) @' Adjusted!weighted!average!number!of!ordinary!shares!and!potential!ordinary! shares!used!in!calculating!basic!and!diluted!earnings!per!share' 711,202,448! 572,147,399' ' Non\dilutive'securities' ! As! at! reporting! date,! 159,467,949! (2014:! 108,243,333)! unlisted! options! and! 166,595,588! (2014:! 226,486,857)! listed! options!(which!represent!potential!ordinary!shares)!were!not!dilutive!as!they!would!decrease!the!loss!per!share.!! ! Conversions,'calls,'subscriptions'or'issues'after'30'June'2015' There!have!been!no!conversions!to,!calls!of,!or!subscriptions!for!ordinary!shares!or!issues!of!potential!ordinary!shares! since!the!reporting!date!and!before!the!completion!of!this!financial!report.! ! ! ANNUAL!REPORT!2015! ! ! 25! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 7.! SEGMENT!INFORMATION!! Management! has! determined! that! the! Group! operates! in! one! industry,! in! two! geographical! locations,! being! mineral! exploration! in! Australia! and! Spain.! As! the! Group! is! focused! on! mineral! exploration,! the! Board! monitors! the! Group! based! on! actual! versus! budgeted! exploration! expenditure! incurred! by! area! of! interest.! Operating! segments! are! now! reported! in! a! manner! that! is! consistent! with! the! internal! reporting! to! the! chief! operating! decision! makers! (“CODM”),! which!have!been!identified!by!the!Group!as!the!Chief!Executive!Officer!and!members!of!the!Board!of!Directors.! ! Geographic!Region! Australia! Discontinued! operations!@!Spain! Revenue! 2015! $! [! [! 2014! $! @! @! Results! 2015! $! 2014! $! Assets! 2015! $! 2014! $! (1,236,932)! (1,700,134)! 3,507,811! 3,787,218! 83,165! (97,639)! [! @! Unallocated!amounts! 13,221! 109,400! (1,564,905)! (1,693,225)! 282,929! 1,024,818! ! 13,221! 109,400! (2,718,672)! (3,490,998)! 3,790,740! 4,812,036! RECONCILIATION!OF!SIGNIFICANT!UNALLOCATED!AMOUNTS!ABOVE:! Results! Revenue! Administration!expenses! Employee!benefits! Depreciation! Finance!expenses! Loss!on!available@for@sale!investments! ! ASSETS' Cash!and!cash!equivalents' Trade!and!other!receivables' Plant!and!equipment' Other!assets' ! DISCONTINUED!OPERATIONS! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2015! $! 13,221! (506,764)! (992,456)) (30,246)) (40,115)! (8,545)! (1,564,905)! ! 146,414! 3,893! 73,422! 59,200! 2014! $! 109,400! (500,128)' (1,212,000)' (90,497)' @! @! (1,693,225)' ! 675,753' 149,727' 103,668! 95,670' 282,929! 1,024,818' a)! Description! On! 26! March! 2012! the! Company! entered! into! a! Farm@in! and! Joint! Venture! Heads! of! Agreement! with! Astur! Gold! Corporation!and!Exploraciones!Mineras!Del!Cantabrico!SL!in!respect!of!the!La!Codosera!Gold!Project!in!Spain.!On!1! August! 2012! the! Company! established! a! wholly! owned! Spanish! subsidiary! Recuros! Minerales! Caravel! Espana! S.L.! (“RMCE”)! to! complete! the! exploration! on! the! project.! As! a! result! of! unsatisfactory! drilling! results! from! an! extensive! exploration!program!conducted!from!August!to!December!2012,!the!Company!decided!to!cease!further!exploration!in! Spain.!The!liquidation!of!RMCE!was!completed!during!the!year!ended!30!June!2015.! Financial!information!relating!to!discontinued!operations!for!the!year!is!set!out!below.! b)! Financial!performance!and!cash!flow!information! ! Revenue! Expenses!–!reversal!of!accrued!administration!costs' Profit!(loss)!before!income!tax) Income!tax!expense) Profit!(loss)!from!discontinued!operations) ! Net!cash!outflow!from!ordinary!activities' Net!cash!outflow!from!investing!activities' Net!cash!outflow!from!financing!activities' Net!decrease!in!cash!consumed!by!the!division! ! ANNUAL!REPORT!2015! ! ! ! ! ! ! ! ! ! ! ! ! 2015) $) [) 83,165) 83,165) [) 83,165) ! 8,820) [) [) 2014' $) @' (97,639)' (97,639)' @' (97,639)' ! 12,816' @' @' 8,820) 12,816' ! 26! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 8.! INCOME!TAX! (a)'The'major'components'of'income'tax'are:! Current!income!tax) Current!income!tax!benefit! Current!income!tax!benefit!not!recognised) ! Deferred!income!tax) Relating!to!the!origination!and!reversal!of!temporary!differences' Deferred!tax!assets!not!brought!to!account!as!their!realisation!is! not!regarded!as!probable) Income!tax!(benefit)/expense!recorded!in!the!statement!of!profit! and!loss!and!other!comprehensive!income) ! (b)'A'reconciliation'between'tax'expense'and'the'product'of' accounting'loss'before'tax'multiplied'by'the'Company’s' applicable'income'tax'rate'is'as'follows:! Accounting!loss!before!tax!from!continuing!operations' Loss!before!income!tax!from!discontinued!operations) Accounting!loss!before!income!tax' At!the!Company’s!statutory!income!tax!rate!of!30%!(2014:!30%)) Non@deductible!expenses' Share!based!payments' Research!&!development!tax!offset!prior!year!adjustment' Deferred!tax!assets!not!brought!to!account!as!their! realisation!is!not!regarded!as!probable) ! Income!tax!expense!reported!in!the!consolidated!statement!of! profit!or!loss!and!other!comprehensive!income) Income!tax!attributable!to!discontinued!operations) ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2015! $! ! (942,738)) 942,738! ! ! (36,010)! 2014! $! ! ! (1,082,979)' 1,082,979' ' ! 7,926' 36,010) (7,926)' [! ! ! (2,801,837)) 83,165) (2,718,672)) (815,602)) 549! 2,116! (93,741)) 906,677! [! [! [! [! @' ! ! (3,393,359)' (97,639)' (3,490,998)' (1,047,299)' 591! 42,765' (86,961)' 1,090,904' @) @) @) @) R&D!tax!rebate!of!$312,469!(2014:!$289,871)!has!been!recognised!in!other!income.! ! ! (c)'Deferred'income'tax! Deferred!income!tax!at!30!June!relates!to!the!following:' Deferred!Tax!Liabilities) Exploration!and!evaluation!assets' Recognition!of!losses!to!offset!future!taxable!income' ! Deferred!Tax!Assets) Accruals' Provisions' Section!40@880!deductions' Australian!losses!available!to!offset!against!future! taxable!income' Foreign!losses!available!to!offset!against!future!taxable! income' Recognition!of!losses!to!offset!future!taxable!income' Deferred!tax!assets!not!brought!to!account!as!their! realisation!is!not!regarded!as!probable' ! ! ! ! Statement!of!Financial! Position! Statement!of!Profit!&!Loss! and!Other!Comprehensive! Income' 2015!$! ! ! (1,052,343)) 1,052,343! [! ! 35,136! 22,217! 87,262! 2014!$! ! ! (1,136,165)' 1,136,165! @! ! 76,469! 25,595! 126,204! 2015!$! ! ! [! [! [! ! 41,333) 3,378! 38,942! 2014!$! ! ! @! @! @! ! 43,377' 4,461! 36,981! 12,418,674! 11,494,972! (748,199)! (6,334,734)! 2,480! (1,052,343)) 276,159! (1,136,165)' 14,273! (83,822)! (29,292)! (120,001)! (11,513,426)) [! (10,863,234)! @! 734,095! [! 6,399,208! @! ANNUAL!REPORT!2015! ! ! 27! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 9.! CASH!AND!CASH!EQUIVALENTS! (a)'Reconciliation'to'the'Statement'of'Financial'Position'and' Statement'of'Cash'Flows! Cash!at!bank!and!on!hand' ! (b)'Reconciliation'of'net'loss'after'income'tax'expense'to'net' cash'outflow'from'operating'activities! Net!loss!after!income!tax!expense' Adjustment'for'non\cash'income'and'expense'items! Share!based!payments' Depreciation!expense' Profit!on!disposal!of!plant!and!equipment' Loss!on!disposal!of!plant!and!equipment' Loss!on!disposal!of!available!for!sale!assets' Impairment!of!tenements! Foreign!exchange!movement' Changes'in'assets'and'liabilities! Decrease/(Increase)!in!receivables' Decrease/(Increase)!in!other!current!assets' (Decrease)/Increase!in!payables' (Decrease)/Increase!in!provisions' Net!cash!outflow!from!operating!activities' ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2015! $! 2014! $! ! 146,414) ! ! ! 675,753' ! ! (2,718,672)) (3,490,998)' ! 311,955) 30,246) (360)) [) 8,545) 200,000! [) ! 145,834) [) (13,490)) (11,260)) (2,047,202)) ! 392,026' 90,497' (73,869)' 1,118! @' @! (5,778)' ! 119,624' 191' (533,291)' (14,872)' (3,515,352)' ! ! ! (c)'Significant'Non\Cash'Financing'and'Investing'Activities! In! October! and! November! 2014! and! February! and! April! 2015! shares! were! issued! to! drilling! contractors! for! drilling! services.!A!total!of!25,898,845!ordinary!shares!were!issued!at!market!value!calculated!by!a!10!day!VWAP!at!the!end! of!each!invoice!month!for!a!total!consideration!of!$292,901!(refer!note!20(c)).! ! ! ! ) (d)'Credit'Standby'Arrangements'with'Banks! At!reporting!date,!the!Group!had!no!used!or!unused!financing!facilities!(2014:!nil).! ! ! ! ! 10.! TRADE!AND!OTHER!RECEIVABLES! GST!and!FBT!receivables' ! 11.! OTHER!CURRENT!ASSETS! Bank!term!deposits!–!securing!guarantees! Security!deposits' ! ! 12.! AVAILABLE!FOR!SALE!FINANCIAL!ASSETS! Shares!of!Crusader!Resources!Limited' ! ! ! ! ! ! ! ! 3,893! 3,893! 59,000! 200! 59,200! 149,727' 149,727' 59,000! 200) 59,200) [! [! 36,470! 36,470! On!14!August!2014!the!company!sold!104,200!shares!in!Crusader!Resources!for!net!consideration!of!$41,471.!These! shares!were!purchased!on!24!August!2012!for!$50,016.!!The!resulting!net!loss!on!sale!of!$8,545!has!been!expensed! through!profit!and!loss!during!the!period.! ! ! ANNUAL!REPORT!2015! ! ! 28! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 13.! PLANT!AND!EQUIPMENT! Computer!equipment!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Vehicles!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Exploration!equipment!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Office!equipment!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Software!–!at!cost' Accumulated!depreciation' Net!carrying!amount' ! Total!plant!and!equipment' Accumulated!depreciation' Net!carrying!amount) ! (a)'Reconciliations! ! Computer!equipment' Balance!at!the!beginning!of!year' Disposals' Depreciation!expense' Balance!at!end!of!year' ! Vehicles' Balance!at!the!beginning!of!year' Additions' Depreciation!expense' Balance!at!end!of!year' ! Exploration!equipment' Balance!at!the!beginning!of!year' Disposals' Depreciation!expense' Balance!at!end!of!year' ! Office!equipment' Balance!at!the!beginning!of!year' Depreciation!expense' Balance!at!end!of!year' ! Software' Balance!at!the!beginning!of!year' Depreciation!expense' Balance!at!end!of!year' ! ANNUAL!REPORT!2015! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2015! $! 2014! $! 100,671! (96,325)! 4,346!! 208,490!! (180,781)! 27,709!! ! 182,457!! (145,136)! 37,321!! ! 16,858!! (15,220)! 1,638!! ! 54,755!! (52,347)! 2,408!! ! 563,231!! (489,809)! 73,422!! ! ! ! 7,390) [) (3,044)) 4,346) ! ! 39,586) [) (11,877)) 27,709) ! ! 49,895) [) (12,574)) 37,321) ! 2,783) (1,145)) 1,638) 4,014) (1,606)) 2,408) ! ! 100,671! (93,281)! 7,390!! 208,490!! (168,904)! 39,586!! ! 182,457!! (132,562)! 49,895!! ! 16,858!! (14,075)! 2,783!! ! 54,755!! (50,741)! 4,014!! ! 563,231!! (459,563)! 103,668!! ! ! ! 17,586! (2,817)! (7,379)! 7,390! ! ! 59,289! 42,016! (61,719)! 39,586! ! ! 67,022! (239)! (16,888)! 49,895! ! 4,618! (1,835)! 2,783! ! ! 6,690! (2,676)! 4,014! ! ! 29! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 13.! PLANT!AND!EQUIPMENT!(CONTINUED)! Total) Balance!at!the!beginning!of!year' Additions' Disposals' Depreciation!expense!–!continuing!operations' Balance!at!end!of!year) ! ! 14.! EXPLORATION!&!EVALUATION!EXPENDITURE! The!Group!has!exploration!costs!carried!forward!in!respect!of! areas!of!interest:' Areas!of!interest:' Calingiri!tenements! Wynberg!tenements! Bryah!tenements' ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2015! $! ! ! 103,668) [) [) (30,246)) 73,422) ! ! ! 3,107,811! 300,000! 100,000) 3,507,811) 2014! $! ! ! 155,205! 42,016! (3,056)' (90,497)' 103,668! ! ! ! 3,187,218! 500,000! 100,000! 3,787,218! ! The! recoverability! of! the! carrying! amount! of! the! exploration! and! evaluation! assets! is! dependent! on! the! successful! development!and!commercial!exploitation,!or!alternatively!the!sale,!of!the!respective!areas!of!interest.!At!the!year!end! the! Company! recognises! that! it! may! have! to! surrender! some! of! the! Wynberg! blocks! within! the! tenements! and! has! therefore!impaired!to!reflect!the!potential!non@recoverability!of!the!exploration!expenditure.!! ! Reconciliation:! Calingiri!tenements' Balance!at!the!beginning!of!year' Change!in!purchase!related!costs!of!mining!tenements' Impairment' Balance!at!end!of!year' ! Wynberg!tenements' Balance!at!the!beginning!of!year' Purchase!of!mining!tenements' Impairment' Balance!at!end!of!year' ! Bryah!tenements' Balance!at!the!beginning!of!year' Purchase!of!mining!tenements' Impairment' Balance!at!end!of!year' 15.! TRADE!AND!OTHER!PAYABLES! ! Trade!payables!(1)' Accrued!interest! Accruals' ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 3,187,218) (79,407)) [) 3,107,811) ! 500,000) [) (200,000)) 300,000) ! 100,000) [) [) 100,000) ! 276,183! 24,555! 92,565! 393,303! ! ! 3,187,218' @' @' 3,187,218' ! 500,000) @' @' 500,000' ! 100,000) @' @' 100,000' ! 191,280! @! 254,895! 446,175! (1)'Terms'&'Conditions' ' ' ' Trade!creditors!are!non@interest!bearing!and!are!normally!settled!on!30!days!terms.! ! ! ANNUAL!REPORT!2015! ! ! 30! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 16.! PROVISIONS! Employee!benefits! ! ! 2015! $! 2014! $! 74,055! 85,315! Amounts!not!expected!to!be!settled!within!the!next!12!months!) The! current! provision! for! employee! benefits! includes! accrued! annual! leave! and! long! service! leave.! For! long! service! leave!it!covers!all!unconditional!entitlements!where!employees!have!completed!the!required!period!of!service!and!also! those!where!employees!are!entitled!to!pro@rata!payments!in!certain!circumstances.!The!entire!amount!of!the!provision! of! $74,055! (2014! @! $85,315)! is! presented! as! current,! since! the! group! does! not! have! an! unconditional! right! to! defer! settlement!for!any!of!these!obligations.!However,!based!on!past!experience,!the!group!does!not!expect!all!employees! to!take!the!full!amount!of!accrued!leave!or!require!payment!within!the!next!12!months.!The!following!amounts!reflect! leave!that!is!not!to!be!expected!to!be!taken!or!paid!within!the!next!12!months.' Current!leave!obligations!expected!to!be!settled!after!12!months!) 20,647! 18,570! The!measurement!and!recognition!criteria!relating!to!employee!benefits!have!been!included!in!Note!2!to!this!report.! 17.! INTEREST!BEARING!LIABILITIES! Convertible!loan!(i)' ' Promissory!loan!(ii) ! ! ! ! 600,000! 200,000! 800,000! @! @! @! Convertible'note'at'fair'value' (i)' On!17!October!2014!the!Company! completed!a!Convertible!Loan!Agreement!with!First!Quantum!Minerals!(Australia)! Pty!Ltd!(“FQM”)!to!finance!further!exploration!at!the!Calingiri!Project!specifically!the!Ninan!and!Bindi!extensions!of!the! tenements.!Details!of!the!loan!facility!are!summarised!as!follows:! Principal:! Interest:! ! Maturity:!! Conversion:! $600,000! Bank!prime!rate!plus!3%!per!annum!payable!quarterly! 1!year! FQM!can!choose!to!convert!all!or!part!of!the!principal!and!interest!to!ordinary!shares!in!the!Company! at!the!greater!of!$0.017!per!share!or!the!5!day!VWAP!prior!to!the!conversion!date.! (ii)' On!11!June!2015!Caravel!executed!a!Promissory!Note!with!RM!Poustie!which!included!the!following!conditions:! Promissory'note' $200,000! 11.75%! 31!July!2015! Principal:! Interest:! ! Maturity:!! ! The!loan!was!secured!by!a!fixed!and!floating!charge!over!the!unencumbered!assets!of!the!Company.!A!loan!facilitation! fee!of!1,500,000!ordinary!shares!in!the!Company!with!a!market!value!of!$12,000!was!expensed!to!the!profit!and!loss!at! 30!June!2015.!These!shares!were!subsequently!issued!on!7!September!2015!(refer!note!20(c)).! ! ! ! ANNUAL!REPORT!2015! ! ! 31! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! ! 18.! CONTRIBUTED!EQUITY! (a)!Issued!and!paid!up!capital! 745,938,533!(2014:!664,655,072)!fully!paid!ordinary!shares' ! ! (b)!Movement!in!shares!on!issue! (1)'Ordinary'Shares! Balance!–!1!July!2013' Issue!of!Shares!(i)' Less!Transaction!costs' Issue!of!shares!Employee!Share!Scheme!(ii)' Balance!–!30!June!2014! ! Issue!of!Shares!(iii)' Less!Transaction!costs' Issue!of!shares!Employee!Share!Scheme' Balance!–!30!June!2015' (2)'Treasury'Shares! Shares!held!by!the!Trust' ' (3)'Performance'Shares' Balance!1!July!2013' Cancellation!and!conversion' Balance!–!30!June!2014' Cancellation!and!conversion' Balance!–!30!June!2015' ! !(i)!Shares!issued!as!follows:! @!11,799,929!@!$0.015!each!on!18!September!2013! @!37,913,333!@!$0.015!each!on!27!September!2013! @!4,881,115!@!$0.0176!each!on!18!March!2014! @!83,333,333!@!$0.015!each!on!20!March!2014! @!7,862,758!@!$0.0149!each!on!13!May!2014! @!3,575,701!@!$0.0131!each!on!17!June!2014! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 36,672,676) 35,691,743' No.! ! 499,329,935! 149,366,169! @! 15,958,968! 664,655,072! ! 81,283,461! @! @! 745,938,533! ! (26,958,968)' 718,979,565' ! 2,000,000! @' 2,000,000! @' 2,000,000! $! ! 33,537,775! 2,245,175!! (91,207)! @! 35,691,743! ! 1,024,901!! (43,968)! @! 36,672,676! ! @! 36,672,676! ! @! @' @! @' @! ! !(iii)!Shares!issued!as!follows:! @!50,000,000!@!$0.013!each!on!17!October!2014! @!1,405,622!@!$0.0161!each!on!17!October!2014! @!3,205,457!@!$0.0164!each!on!20!November!2014! @!2,367,295!@!$0.0138!each!on!20!November!2014! @!5,384,616!@!$0.013!each!on!20!November!2014! @!3,118,826!@!$0.0124!each!on!11!February!2015! !(ii)!Employee!Share!Acquisition!Plan!shares!issued!as!follows!! @!15,801,645!@!$0.0093!each!on!30!April!2015! @!2,659,832!@!$0.01307!each!on!4!September!2013! @!9,000,000!@!$0.01335!each!on!6!November!2013! @!2,001,382!@!$0.01737!each!on!5!February!2014! @!2,297,754!@!$0.01513!each!on!13!May!2014! ! (c)!Terms!and!conditions!of!contributed!equity! ! !' ! ! ! Ordinary'Shares! Ordinary!shares!have!the!right!to!receive!dividends!as!declared!and,!in!the!event!of!the!winding!up!of!the!Company,!to! participate!in!the!proceeds!from!the!sale!of!all!surplus!assets!in!proportion!to!the!number!of!and!amounts!paid!up!on! shares! held.! Ordinary! shares! entitle! their! holder! to! one! vote,! either! in! person! or! by! proxy,! at! a! meeting! of! the! Company.! ! ! ! ! ! ANNUAL!REPORT!2015! ! ! 32! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! 18.! CONTRIBUTED!EQUITY!(CONTINUED)! ! ! 2,000,000'Unlisted'Performance'Shares'(issued'2'September'2011)! The!Performance!Shares!will!convert!to!ordinary!shares!on!a!1!for!1!basis!on!satisfaction,!prior!to!the!expiry!date,!of! the!Verification!Milestone.!' The!Verification!Milestone!is!the!identification!of!an!independently!calculated!Mineral!Resource!of!250,000!ounces!of! gold!at!the!Indicated!Category!as!defined!by!JORC!or!such!amount!of!a!metal!other!than!gold!that!has!an!equivalent! value! at! the! time! of! determination! as! 250,000! ounces! of! gold! from! the! tenements! acquired! under! the! Heads! of! Agreement.' ! ! ! The!expiry!date!is!30!April!2016.' The!Performance!Shares!do!not!carry!voting!rights!and!are!not!transferable.! There!are!no!participation!rights!or!entitlements!inherent!in!the!Performance!Shares!and!holders!will!not!be!entitled!to! participate!in!new!issues!of!capital!during!the!currency!of!the!Performance!Shares.! If! the! Company! is! wound! up! prior! to! conversion! of! the! Performance! Shares! the! Performance! Shareholders! have! no! right!to!be!paid!cash!for!the!issue!price,!nor!any!right!to!participate!in!the!surplus!assets!or!profits!of!the!Company.! If! prior! to! the! expiry! date! the! Verification! Milestone! is! not! met,! then! the! total! number! of! Performance! Shares! will! convert!into!one!ordinary!share.! No!value!has!been!attributed!to!the!Performance!Shares!as!the!tenement!has!been!abandoned! and! the! Verification! Milestone!will!not!be!achieved.! Treasury'shares' Information'relating'to'the'employee'share'acquisition'plan'is'disclosed'in'note'20(a).! ' (d)!Capital!Risk!Management! When! managing! capital,! management’s! objective! is! to! ensure! the! entity! continues! as! a! going! concern! as! well! as! to! maintain!optimal!returns!to!shareholders!and!benefits!for!other!stakeholders.!! ! ! ! Being!at!an!exploration!stage,!the!Company!does!not!generate!cash!inflows!from!its!operations!to!fund!its!exploration! and!working!capital!requirements,!therefore,!the!Company!may!issue!shares!to!either!generate!cash!for!operations!or! to!acquire!assets!in!order!to!maintain!adequate!levels!of!cash!reserves.! During! the! financial! year! ended! 30! June! 2015,! the! Company! issued! 81,283,461! ordinary! shares! including! treasury! shares!(2014:!165,325,137!ordinary!shares).!! The!Company!is!not!subject!to!any!externally!imposed!capital!requirements.! ' 19.! RELATED!PARTIES! (a)'Transactions'with'Key'Management'Personnel' Details!relating!to!key!management!personnel,!including!remuneration!paid,!are!included!in!the!audited!remuneration! report! section! of! the! directors’! report.! The! aggregate! compensation! made! to! directors! and! other! members! of! key! management!personnel!of!the!consolidated!entity!is!set!out!below:! ) Short!term!employee!benefits' Termination!payments' Post@employment!benefits' Share!based!payments' Total!compensation! ! ! ! ! ! ! 2015! $! 266,916) [) 46,319) 3,096! 316,331) 2014! $! 290,766' @' 27,375' 75,759' 393,900' (b)'Transactions'with'Other'Related'Parties! During!the!year!ending!30!June!2015!$60,000!was!received!from!a!public!company,!of!which!Mr!Marcel!Hilmer!is!a! director,!for!provision!of!serviced!offices!(2014:!$60,000).!! ! ! ! ANNUAL!REPORT!2015! ! ! 33! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! 20.! SHARE!BASED!PAYMENTS) (a)!Employee!Share!Acquisition!Plan! Shareholders!approved!the!establishment!of!the!Caravel!Employee!Share!Acquisition!Plan!at!a!general!meeting!on!13! March!2013.!The!Company!believes!that!the!share!acquisition!plan!provides!eligible!employees!and!Directors!effective! incentive! for! their! ongoing! commitment! and! contribution! to! the! Company.! Eligible! employees! and! Directors! offered! shares!under!the!scheme!are!provided!a!limited!recourse,!interest!free!loan!to!be!used!to!subscribe!for!the!shares!in! the!Company.!No!shares!were!issued!under!this!scheme!during!the!year!ended!30!June!2015!(2014:!15,958,968).) ! ! Directors! Date!shares! granted) Loan! vesting!date) Price) Balance!1! July!2014) Issued!during! the!year) Balance!at!30! June!2015) Vested!at!30! June!2015) Marcel!Hilmer) 15@Mar@2013) 15@Mar@2014) $0.0276) 7,500,000) Peter!Alexander) 6@Nov@2013) 6@Nov@2014) $0.01335) 3,000,000) James!Harris) 6@Nov@2013) 6@Nov@2014) $0.01335) 3,000,000) Brett!McKeon) 6@Nov@2013) 6@Nov@2014) $0.01335) 3,000,000) ! Employees! ! ! ! ! 16,500,000! ! ! ! Rowen!Colman) 4@Apr@2013) 25@Mar@2015) $0.0237) 1,500,000) Anthony!Poustie) 4@Apr@2013) 1@Feb@2015) $0.0239! 2,000,000) Various) Various) Various) ! Total) 2@Sep@2013) 2@Oct@2013) $0.01307) 2,659,832) 5@Feb@2014) 6@Mar@2014) $0.01754) 2,001,382) 13@May@2014) 12@Jun@2014) $0.01513) 2,297,754) ! ! ! ! 10,458,968! ! 26,958,968' ! @) @) @) @) @! ! @) @) @) @) @) @! @! 7,500,000! 7,500,000) 3,000,000! 3,000,000' 3,000,000! 3,000,000' 3,000,000! 3,000,000' 16,500,000! 16,500,000! ! ! 1,500,000) 1,500,000) 2,000,000) 2,000,000) 2,659,832) 2,659,832) 2,001,382) 2,001,382) 2,297,754) 2,297,754) 10,458,968! 10,458,968! 26,958,968) 26,958,968! ! Employee'Share'Acquisition'Plan'shares'to'Directors) No!shares!were!issued!to!directors!during!the!year!ended!30!June!2015!(2014:!9,000,000).) The!director!loans!of!$327,483!have!become!non@recourse,!except!against!the!shares!held!in!trust!for!the!participant,! as!the!vesting!conditions!have!been!satisfied.) The! value! of! the! instruments! has! been! expensed! to! share! based! compensation! on! a! proportionate! basis! for! each! financial! year! from! grant! to! vesting! date.! The! proportion! expensed! to! remuneration! and! accounted! for! in! the! share@ based!payments!reserve!was!$3,096!for!the!year!ended!30!June!2015!(2014:!$38,529).) Employee'Share'Acquisition'Plan'shares'to'employees) No!shares!were!issued!to!employees!during!the!year!ended!30!June!2015!(2014:!6,958,968).! The! employee! loans! of! $187,654! have! become! non@recourse,! except! against! the! shares! held! in! trust! for! the! participant,!as!the!vesting!conditions!have!been!satisfied.! The! value! of! the! instruments! has! been! expensed! to! share! based! compensation! on! a! proportionate! basis! for! each! financial! year! from! grant! to! vesting! date.! The! proportion! expensed! to! remuneration! and! accounted! for! in! the! share@ based!payments!reserve!was!$951!for!the!year!ended!30!June!2015!(2014:!$44,795).) (b)!Options! No!unlisted!options!were!granted!under!the!Caravel!Employee!Option!Scheme!during!the!year!ended!30!June!2015! (2014:! Nil).! During! the! year! ended! 30! June! 2015! Nil! options! issued! under! the! scheme! were! cancelled! (2014:! 1,080,000)! and! 1,160,000! options! expired! (2014:! 1,260,000).! The! directors! are! not! eligible! to! participate! in! this! scheme.! No! options! were! issued! to! directors! during! the! year! ended! 30! June! 2015! while! 3,000,000! unlisted! options! expired.!! In!addition,!during!the!year!ended!30!June!2015,!Nil!listed!options!were!issued!to!an!advisor!of!the!Company!(2014:! 900,000!listed!options).!During!the!year!7,000,000!listed!options!which!had!been!issued!to!an!advisor!expired!(2014:! Nil).! Also! during! the! year! ended! 30! June! 2015,! Nil! unlisted! options! were! issued! to! advisors! of! the! Company! (2014:! 750,000).! Terms! and! conditions! of! each! grant! to! directors,! employees! and! consultant! are! described! below.! There! were! no! modifications!to!grants!during!2015!or!2014.! ANNUAL!REPORT!2015! ! ! 34! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! 20.!!SHARE!BASED!PAYMENTS!(CONTINUED)! ! ! ! (i)'Terms'and'conditions'of'share\based'payments' Terms!and!conditions!of!options!granted!during!the!year!ended!30!June!2014! Terms!and!conditions!of!Options!granted!to!an!Advisor) @! Each!Option!shall!be!issued!for!no!consideration.) @! Each!Option!entitles!the!holder!to!subscribe!for!one!Share!upon!exercise.) @! The!exercise!prices!of!the!Options!are!$0.021.) @! The!Options!are!exercisable!at!any!time!prior!to!the!Expiry!Date.) @! The!Options!expire!on!16!October!2016.) @! Shares!issued!on!exercise!of!the!Options!rank!equally!with!the!then!shares!of!the!Company.) @! No!application!for!quotation!of!the!Options!will!be!made!by!the!Company.) @! The!Options!are!non@transferable.) @! If!there!is!any!reconstruction!of!the!issued!share!capital!of!the!Company,!the!rights!of!the!Option!holders!may!be! varied!to!comply!with!the!ASX!Listing!Rules,!which!apply!to!the!reconstruction!at!the!time!of!the!reconstruction.! ! (ii)'Summary'of'options'granted' The!following!table!illustrates!the!number!(No.)!and!weighted! average!exercise!prices!(WAEP)!of,!and!movements!in,!share! options!issued!during!the!year:! ! ! ! Outstanding!at!the!beginning!of!the!year! Granted!during!the!year! Exercised!during!the!year! Cancelled!during!the!year! Expired!or!lapsed!during!the!year! Outstanding!at!the!end!of!the!year! Exercisable!at!the!end!of!the!year! Outstanding!at!the!beginning!of!the!year! Granted!during!the!year! Exercised!during!the!year! Cancelled!during!the!year! Expired!or!lapsed!during!the!year! Outstanding!at!the!end!of!the!year! ! Exercisable!at!the!end!of!the!year! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 2014' No.' 45,800,000) 1,650,000) @) (1,080,000)) (13,560,000)) 32,810,000) ! 31,650,000) 2015' No.! 32,810,000) @! @) @! (11,160,000)) 21,650,000! ! 21,650,000' ! ! ! 2014' WAEP' $0.13! $0.03! @! $0.03! $0.21! $0.09! ! $0.09! 2015' WAEP! $0.09! @! @! @! $0.09! $0.09! ! $0.09! ! (iii)'Weighted'average'remaining'contractual'life' The! weighted! average! remaining! contractual! life! of! the! share! options! outstanding! as! at! 30! June! 2015! is! 1.26! years! (2014:!1.40!years).! ! ! ! ! (iv)'Range'of'exercise'prices' The!range!of!exercise!prices!for!options!outstanding!at!the!end!of!the!year!was!$0.02!@!$0.10!(2014:!$0.021!@!$0.30).! ! ! ! ! ! (v)'Weighted'average'fair'value' The!weighted!average!fair!value!of!options!granted!during!the!year!was!$Nil!(2014:!$0.006).! ! ! ' ! ANNUAL!REPORT!2015! ! ! 35! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! 20.!!SHARE!BASED!PAYMENTS!(CONTINUED)! ! ! ! (vi)'Option'pricing'model' Options! granted! as! part! of! employee! emoluments! and! advisor! services! have! been! independently! valued! using! the! Black@Scholes!Option!Valuation!model,!which!takes!account!of!factors!including!the!option!exercise!price,!the!current! level!and!volatility!of!the!underlying!share!price,!the!risk@free!interest!rate,!expected!dividends!on!the!underlying!share,! current!market!price!of!the!underlying!share!and!the!expected!life!of!the!option.!See!below!for!the!assumptions!used! for!grants!made!during!the!period!ended!30!June!2015:) ! Dividend!yield!(%)! Expected!volatility!(%)! Risk!free!interest!rate!(%)! Expected!life!of!the!option!(years)! Option!exercise!price!($)! Share!price!at!grant!date!($)! ! ! ! ! ! ! ! 2015! [! [! [! [! [! [! 2014! 0%! 128%! 3.00%! 3!years! $0.021! $0.013! The!dividend!yield!reflects!the!assumption!that!the!current!dividend!payout!will!remain!unchanged.!The!expected!life!of! the! options! is! based! on! historical! data! and! is! not! necessarily! indicative! of! exercise! patterns! that! may! occur.! The! expected!volatility!reflects!the!assumption!that!the!historical!volatility!is!indicative!of!future!trends,!which!may!also!not! necessarily!be!the!actual!outcome.! (vii)'Option'modifications' ! ! ! There!were!no!changes!to!the!exercise!price!of!existing!options!during!the!year!ended!30!June!2015.! (c)!Shares! In!October!and!November!2014!and!February!and!April!2015!shares!were!issued!to!drilling!contractors!for!drilling! services.!A!total!of!25,898,845!ordinary!shares!were!issued!at!market!value!calculated!by!a!10!day!VWAP!at!the!end! of!each!invoice!month!for!a!total!consideration!of!$292,901.! On!7!September!2015!the!Company!issued!1,500,000!ordinary!shares!for!a!loan!facilitation!fee.!The!Promissory!Note! was!executed!on!11!June!2015!and!$12,000!has!been!expensed!in!the!profit!and!loss!at!30!June!2015!representing! the!market!value!of!the!shares!at!that!date.! (d)!Recognised!share!based!payment!expense!in!profit!or!loss! The!expense!recognised!for!director,!employee!and!consultant! services!received!during!the!year!is!shown!in!the!table!below:! Expense!arising!from!employee!share!plan!acquisitions!(a)! Expense!arising!from!employee!options!issued!(b)! Expense!arising!from!consultant!options!issued!(b)! Finance!expenses!(c)! Shares!issued!for!drilling!services!(c)! Total!share!based!payments! ! ! ! (e)!Recognised!share!based!payment!expense!in!share!issue!costs! The!expense!recognised!for!consultant!services!during!the!year! is!as!follows:! Share!issue!costs!for!consultant!options!issued!(b)! ! 21.! FINANCIAL!INSTRUMENTS! 2015! $! ! 4,047! 3,007! [! 12,000! 292,901! 311,955! ! ! [! ! ! ! ! ! ! 2014! $! ! 128,020! 7,929! 6,600! @! 249,477! 392,026! ! ! ! 3,600! Financial!risk!management! The!Group’s!principal!financial!instruments!comprise!cash!and!short@term!deposits.! The!main!purpose!of!these!financial!instruments!is!to!fund!capital!expenditure!on!the!Group’s!operations.!The!Group! has!various!other!financial!assets!and!liabilities!such!as!trade!receivables!and!trade!payables,!which!arise!directly!from! its! operations.! It! is,! and! has! been! throughout! the! period! under! review,! the! Group’s! policy! that! no! trading! in! financial! instruments!shall!be!undertaken.!Being!at!an!exploration!stage,!the!Group!has!limited!exposure!to!risks!arising!from!its! financial!instruments.!! ! ANNUAL!REPORT!2015! ! ! 36! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! 21.!!FINANCIAL!INSTRUMENTS!(CONTINUED)! Currently! the! Group! does! not! have! any! exposure! to! commodity! price! risk! or! foreign! currency! risk! as! the! Group! has! ceased! operations! in! Spain.! As! the! Group! moves! into! development! and! production! phases,! exposure! to! commodity! price! risk,! foreign! currency! risk! and! credit! risk! are! expected! to! increase.! The! Board! will! set! appropriate! policies! to! manage!these!risks!dependent!on!market!conditions!and!requirements!at!that!time.! Details!of!the!significant!accounting!policies!and!methods!adopted,!including!the!criteria!for!recognition,!the!basis!of! measurement!and!the!basis!on!which!income!and!expenses!are!recognised,!in!respect!of!each!class!of!financial!asset! and!financial!liability!are!disclosed!in!Note!2.! (a))Credit)risk) Credit! risk! represents! the! loss! that! would! be! recognised! if! counterparties! fail! to! perform! as! contracted.! The! Group’s! maximum!exposure!to!credit!risk!at!reporting!date!in!relation!to!each!class!of!financial!asset!is!the!carrying!amount!of! those!assets!as!indicated!in!the!statement!of!financial!position.!The!majority!of!cash!and!cash!equivalents!is!held!with! one!Australian!Bank!which!has!an!AA@!long@term!credit!rating!from!Standard!and!Poor’s.! Wherever! possible,! the! Group! trades! only! with! recognised,! credit! worthy! third! parties.! There! are! no! significant! concentrations! of! credit! risk! within! the! Group.! Since! the! Group! trades! only! with! recognised! third! parties,! there! is! no! requirement!for!collateral.! (b))Liquidity)risk) Liquidity!risk!is!the!risk!that!the!Group!does!not!have!sufficient!funds!to!pay!its!debts!as!and!when!they!become!due! and! payable.! The! Group! currently! does! not! have! major! funding! in! place.! However! the! Group! continuously! monitors! forecast!and!actual!cash!flows!and!the!maturity!profiles!of!financial!assets!and!financial!liabilities!to!manage!its!liquidity! risk.! ! ! ! ! The! Group’s! objective! is! to! maintain! a! balance! between! continuity! of! funding! and! flexibility! through! the! use! of! bank! loans!if!and!when!required.!! Cash!at!bank!and!on!hand,!as!set!out!in!Note!9,!is!available!for!use!by!the!Group!without!restrictions.! Financial! liabilities! (note! 17)! of! the! Group! at! 30! June! 2015! and! 30! June! 2014! are! expected! to! be! settled! within! 6! months!of!year@end.! (c))Market)risk) ! ! ! ! Price'risk' The!group!is!exposed!to!equity!securities!price!risk.!This!arises!from!investments!held!by!the!group!and!classified!as! available@for@sale.!The!group!is!not!exposed!to!commodity!price!risk.!The!sensitivity!of!movements!in!the!price!has!not! been!disclosed!as!it!is!not!material!to!the!Group.! Foreign'currency'risk' The! carrying! amount! of! financial! assets! and! financial! liabilities! recorded! in! the! financial! statements! represents! their! respective!net!fair!values,!determined!in!accordance!with!the!accounting!policies!disclosed!in!Note!2.! ! ! ! ! ! ! ! ! Interest'rate'risk' The! following! tables! summarise! the! sensitivity! of! the! Group’s! financial! assets! to! interest! rate! risk.! Had! the! relevant! variables,!as!illustrated!in!the!tables,!moved,!with!all!other!variables!held!constant,!post!tax!loss!and!equity!would!have! been! affected! as! shown.! The! analysis! has! been! performed! on! the! same! basis! for! 2015! and! 2014,! and! represents! management’s!judgement!of!a!reasonably!possible!movement.! ! ! 30!June!2015! ! Financial'assets' Cash!and!cash!equivalents! Other!current!assets! Financial'liabilities' Interest!bearing!liabilities! ! ! ! ! ! Interest!Rate!Risk! Interest!Rate!Risk! Carrying! Amount! $! Net!Loss! $! 146,414! 59,000! (1,464)! (590)! 800,000! 8,000! ! ! [1%! +1%! Equity! $! (1,464)! (590)! 8,000! ! ! ! Net!Gain! $! 1,464! 590! (8,000)! ! ! ! Equity! $! 1,464! 590! (8,000)! ! ! ! ! ! ! ANNUAL!REPORT!2015! ! ! 37! CARAVEL!MINERALS!LIMITED! ! ! ! ! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! 21.!!FINANCIAL!INSTRUMENTS!(CONTINUED)! ! 30!June!2014! ! Financial'assets' Cash!and!cash!equivalents! Other!current!assets! ! ! Carrying! Amount! $! 675,753! 59,000! ! Interest!Rate!Risk! Interest!Rate!Risk! [1%! +1%! Net!Loss! $! (6,758)! (590)! ! ! Equity! $! (6,758)! (590)! ! Net!Gain! $! Equity! $! ! ! ! 6,758! 590! ! 6,758! 590! ! None!of!the!Group’s!financial!liabilities!in!2014!were!interest!bearing.! Fair)value)of)financial)instruments) Unless!otherwise!stated,!the!carrying!amounts!of!financial!instruments!reflect!their!fair!value.! ! 22.! FAIR!VALUE!MEASUREMENT! Recurring!fair!value!measurements! The!following!financial!instruments!are!subject!to!recurring!fair!value!measurements:! ! Available@for@sale!financial!assets:! @!Listed!equity!securities!–!Level!1! 30!June!2015! $! 30!June!2014! $! ! ! ! @! ! 36,470! @! Financial!liabilities!at!fair!value!through!profit!or!loss!–!Level!3! ! (800,000)! Valuation!techniques!used!to!derive!level!3!fair!values:! The!fair!value!of!convertible!notes!not!traded!in!an!active!market!is!determined!using!an!internally!prepared!discounted! cash! flow! valuation! technique! using! observable! inputs! (such! as! share! price! and! the! terms! and! conditions! of! the! convertible!notes!as!disclosed!per!note!17)!and!release!of!the!initial!calibration!adjustment!to!the!profit!or!loss.!At!30! June!2015,!the!fair!value!of!the!convertible!note!equates!to!its!carrying!(redemption)!amount,!as!the!conversion!option! is!out!of!the!money.!! Fair!values!of!financial!instruments!not!measured!at!fair!value! Due!to!their!short@term!nature,!the!carrying!amounts!of!current!receivables!and!current!trade!and!other!payables!is! assumed!to!approximate!their!fair!value.! ! 23.! COMMITMENTS!AND!CONTINGENCIES! ! (a)'Operating'lease'commitments' Non@cancellable! operating! leases! contracted! for! but! not! capitalised! in! the! financial!statements! Payable!—!minimum!lease!payments! ! @!not!later!than!1!year! @!later!than!1!year!but!not!later!than!5!years! ! ! ! ! ! The! property! lease! is! a! non@cancellable! operating! lease! expiring! on! 31! May! 2016,!with!rent!payable!monthly!in!advance.!The!lease!allows!for!subletting!of! all!lease!areas!with!the!consent!of!the!lessee.! (b)'Contingencies' The!Group!has!no!contingent!liabilities!at!reporting!date.! 24.! REMUNERATION!OF!AUDITORS! ! The!auditor!of!Caravel!Minerals!Limited!is!BDO!Audit!(WA)! Pty!Ltd.! Amounts'received'or'due'and'receivable'by'BDO'Audit'(WA)' Pty'Ltd'for:' An!audit!or!review!of!the!financial!reports!of!the!Group! ! ! ! ! ! ! ! ! 2015! $! ! ! ! 121,790) [) 121,790) ! ! ! ! 2014! $! ! ! 127,752! 117,106! 244,858! ! ! ! ! ! ! 33,000) 33,000) ! 33,000! 33,000! ANNUAL!REPORT!2015! ! ! 38! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! 25.! PARENT!ENTITY!INFORMATION! ! The! following! information! relates! to! the! parent! entity,! Caravel! Minerals! Limited.! The! information! presented! has! been! prepared!using!accounting!policies!that!are!consistent!with!those!presented!in!Note!2.! ! ! ! Current!assets! Non@current!assets! Total!assets! ! Current!liabilities! Non@current!liabilities! Total!liabilities! ! Contributed!equity! Accumulated!losses! Available@for@sale!reserve! Converted!option!reserve! Share@based!payment!reserve! Total!equity! ! Loss!for!the!year!from!continuing!operations! Loss!for!the!year!from!discontinued!operations! Other!comprehensive!income!for!the!year! Total!comprehensive!loss!for!the!year! ! Guarantees!in!relation!to!subsidiaries! ! ! ! ' ! ! ! ! ! ! ! ! ! ! ! ! ! ! ' ! ! Parent! 2015! $! 158,801! 3,352,308! 3,511,109! 987,728! [! 2014! $! 644,986! 3,923,638! 4,568,624! ! 308,896! @! 987,728! 308,896! 36,660,676! 35,691,743! ! (36,601,173)!! (33,875,293)!! [! 10,239! 2,453,639! 2,523,381! ! (2,737,880)! [! 13,546! (13,546)! 10,239! 2,446,585! 4,259,728! ! (3,515,993)! @! 12,504! (2,724,334)! (3,503,489)! ! ! ! ! Caravel!Minerals!Limited!has!not!issued!any!guarantees!on!behalf!of!subsidiaries.! Commitments! Parent!has!operating!lease!commitments!as!detailed!in!note!23(a).! Contingent!liabilities! As!at!30!June!2015!Caravel!Minerals!Limited!has!no!contingent!liabilities.! ! ! ANNUAL!REPORT!2015! ! ! 39! CARAVEL!MINERALS!LIMITED! ! Notes!to!the!Consolidated!Financial!Statements!(Continued)! For!the!Year!Ended!30!June!2015! 26.! EVENTS!OCCURING!AFTER!THE!REPORTING!PERIOD! ! ! ! On!8!July!2015!the!company!announced!the!execution!of!a!definitive!Farm@in!Agreement!with!First!Quantum!Minerals! (Australia)! Pty! Ltd! (“FQM”)! for! the! right! to! acquire! a! 50.1%! equity! interest! in! the! Calingiri! exploration! project! for! a! contribution!of!$3.6!million.!Terms!of!the!agreement!include:! •! •! •! •! FQM!to!contribute!$3.6!million!for!the!right!to!acquire!50.1%!of!the!Calingiri!project!tenements! In!the!first!12!months!FQM!to!contribute!a!minimum!$1.2!million!at!which!time!they!are!entitled!to!withdraw!with! no!right!or!interest! The! existing! Convertible! Loan! Agreement! with! a! principal! balance! of! $600,000! will! be! converted! to! shares! in! Caravel!at!a!conversion!price!of!1.3c!per!share! After!acquiring!50.1%!in!Calingiri!tenements!FQM!will!have!a!Right!of!First!Offer!to!increase!their!equity!interest! in!Calingiri! ! Finalisation!of!some!terms!and!conditions!of!the!Farm@in!Agreement!were!approved!at!a!Caravel!shareholder!General! Meeting!held!on!27!August!2015.!At!the!same!meeting!shareholders!approved!the!issue!of!48,356,154!shares!for!the! conversion!of!the!Convertible!Loan!with!FQM.!These!shares!were!issued!on!28!August!2015.! ! On!28!July!2015!Caravel!repaid!in!full!the!promissory!note!of!$200,000!plus!outstanding!accrued!interest.!! ! Caravel! announced! a! $1.45! million! capital! raising! through! a! private! placement! on! 13! July! 2015.! Details! of! the! placement!are!as!follows:! •! Commitments! from! investors! to! raise! $1,451,940! through! the! issue! of! 207,420,009! shares! at! an! issue! price! of! $0.007.!One!attaching!free!unlisted!option!exercisable!at!$0.013!for!each!two!shares!issued!! Tranche!1!comprising!140,134,291!shares!were!issued!17!July!2015!raising!$980,940! Tranche! 2! comprising! 67,285,718! shares! to! raise! $471,000! and! the! issue! of! 103,710,005! unlisted! options,! exercisable! at! $0.013! on! or! before! 31! January! 2017! to! investors! of! the! placement,! was! approved! at! a! Caravel! shareholder!General!Meeting!held!on!27!August!2015! 70,067,146!options!were!issued!to!Tranche!1!investors!on!28!August!2015.!The!Tranche!2!shares!and!options! were!issued!on!7!September!2015.! •! •! •! Other!than!the!matters!above,!at!the!date!of!this!report!there!are!no!other!matters!or!circumstances!which!have!arisen! since!30!June!2015!that!have!significantly!affected!or!may!significantly!affect:! @! @! @! ! the!operations,!in!financial!years!subsequent!to!30!June!2015,!of!the!Groupp! the!results!of!those!operations,!in!financial!years!subsequent!to!30!June!2015,!of!the!Groupp!or! the!state!of!affairs,!in!financial!years!subsequent!to!30!June!2015,!of!the!Group.! ! ANNUAL!REPORT!2015! ! ! 40! CARAVEL!MINERALS!LIMITED! ! ! Directors’!Declaration! DIRECTORS’!DECLARATION! ! In!accordance!with!a!resolution!of!the!directors!of!Caravel!Minerals!Limited,!I!state!that:! ! (1)! ! In!the!opinion!of!the!directors:! (a)! the! financial! statements,! notes! and! the! additional! disclosures! included! in! the! directors’! report! designated!as!audited,!of!the!Group!are!in!accordance!with!the!Corporations'Act'2001!including:! ! ! ! ! ! (i)! (ii)! ! giving! a! true! and! fair! view! of! the! Group’s! financial! position! as! at! 30! June! 2015! and! of! its! performance!for!the!period!ended!on!that!datep!and! complying!with!Accounting!Standards,!the!Corporations!Regulations!2001!and!other!! mandatory!professional!reporting!requirements,!and! (b)! there!are!reasonable!grounds!to!believe!that!the!Company!will!be!able!to!pay!its!debts!as!and!when! they!become!due!and!payable.! ! (2)! ! (3)! The! Company! has! included! in! the! notes! to! the! financial! statements! an! explicit! and! unreserved! statement!of!compliance!with!International!Financial!Reporting!Standards.! This! declaration! has! been! made! after! receiving! the! declarations! required! to! be! made! to! the! directors!in!accordance!with!section!295A!of!the!Corporations'Act'2001!for!the!year!ended!30!June! 2015.! ! ! On!behalf!of!the!Board.! ! ! ! ! Marcel!Hilmer! Executive!Director!&!CEO! ! Perth,!!! 16!September!2015! ! ! ! ! ANNUAL!REPORT!2015! ! ! 41! CARAVEL!MINERALS!LIMITED! Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au 38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia INDEPENDENT AUDITOR’S REPORT To the members of Caravel Minerals Limited Report on the Financial Report We have audited the accompanying financial report of Caravel Minerals Limited, which comprises the consolidated statement of financial position as at 30 June 2015, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year. Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 2, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Caravel Minerals Limited, would be in the same terms if given to the directors as at the time of this auditor’s report. Opinion In our opinion: (a) the financial report of Caravel Minerals Limited is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and (b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 2. Report on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2015. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Opinion In our opinion, the Remuneration Report of Caravel Minerals Limited for the year ended 30 June 2015 complies with section 300A of the Corporations Act 2001. BDO Audit (WA) Pty Ltd Jarrad Prue Director Perth, 16 September 2015 ! ! Corporate!Governance!Statement! CORPORATE!GOVERNANCE!STATEMENT! The! Board! of! Directors! of! Caravel! Minerals! Limited! (the! “Company”)! is! responsible! for! the! corporate! governance!of!the!Company.!The!Board!guides!and!monitors!the!business!and!affairs!of!the!Company!on! behalf!of!the!shareholders!by!whom!they!are!elected!and!to!whom!they!are!accountable.! ! This!statement!sets!out!the!main!corporate!governance!practices!in!place!throughout!the!financial!year!in! accordance! with! 3rd! edition! of! the! ASX! Principles! of! Good! Corporate! Governance! and! Best! Practice! Recommendations.! ! Further! information! about! the! Company’s! corporate! governance! practices! is! set! out! on! the! Company’s! website!at!www.caravelminerals.com.au.!! ! This!Statement!was!approved!by!the!Board!of!Directors!and!is!current!as!at!25!September!2015.! ! PRINCIPLE!1:!LAY!SOLID!FOUNDATIONS!FOR!MANAGEMENT!AND!OVERSIGHT! ! ASX!Recommendation!1.1:!a!listed!entity!should!establish!the!functions!reserved!to!the!board!and! those!delegated!to!senior!executives!and!disclose!those!functions! ! The!Company!has!complied!with!this!recommendation.! ! The!Board!has!adopted!a!formal!charter!that!details!the!respective!board!and!management!functions!and! responsibilities.! ! A! copy! of! this! board! charter! is! available! in! the! corporate! governance! section! of! the! Company's!website!at!www.caravelminerals.com.au.! ! ASX!Recommendation!1.2:!a!listed!entity!should!undertake!appropriate!checks!before!appointing!a! person,! or! putting! forward! to! security! holders! a! candidate! for! election! as! a! director! and! provide! security!holders!with!all!material!information!relevant!to!a!decision!on!whether!or!not!to!elect!or!reT elect!a!director! ! The!Company!has!complied!with!this!recommendation.! ! The!Company!did!not!elect!any!new!Directors!during!the!year.! ! Information! in! relation! to! Directors! seeking! reappointment! is! set! out! in! the! Directors! report! and! Notice! of! Annual!General!Meeting.! ! ASX! Recommendation! 1.3:! a! listed! entity! should! have! a! written! agreement! with! each! Director! and! senior!executive!setting!out!the!terms!of!their!appointment.! ! The!Company!has!complied!with!this!recommendation.! ! The!Company!has!in!place!written!agreements!with!each!Director.! ! ASX! Recommendation! 1.4:! the! company! secretary! of! a! listed! company! should! be! accountable! directly! to! the! board,! through! the! chair,! on! all! matters! to! do! with! the! proper! functioning! of! the! board.! ! The!Company!has!complied!with!this!recommendation.! ! The!Board!Charter!provides!for!the!Company!Secretary!to!be!accountable!directly!to!the!board!through!the! Chair.! ANNUAL!REPORT!2015! ! ! 44! CARAVEL!MINERALS!LIMITED! ! ! Corporate!Governance!Statement!(Continued)! ! ASX!Recommendation!1.5:!a!listed!entity!should:! •! have! a! diversity! policy! which! includes! the! requirement! for! the! board! to! set! measurable! objectives!for!achieving!gender!diversity!and!assess!annually!the!objectives!and!the!entity’s! progress!to!achieving!them\! •! disclose!the!!policy!or!a!summary!of!it\! •! disclose!the!measurable!objectives!and!progress!towards!achieving!them\!and! •! disclose! the! respective! proportions! of! men! and! women! on! the! board! and! at! each! level! of! management!and!the!company!as!a!whole! ! The!Company!partly!complies!with!this!recommendation.! The!Company!has!adopted!a!Diversity!Policy!which!is!available!in!the!corporate!governance!section!of!the! Company's!website!at!www.caravelminerals.com.au.! The! Board! considers! that,! due! to! the! size,! nature! and! stage! of! development! of! the! Company,! setting! measurable!objectives!for!the!Diversity!Policy!at!this!time!is!not!appropriate.!The!Board!will!consider!setting! measurable!objectives!as!the!Company!increases!in!size!and!complexity.! There! are! no! women! on! the! Board! or! in! senior! Management! positions.! The! company! currently! has! one! female!employee!which!represents!11%!of!the!total!workforce!including!Directors.! ! ASX! Recommendation! 1.6:! a! listed! entity! should! disclose! the! process! for! evaluating! the! performance! of! the! board,! its! committees! and! individual! directors! and! whether! a! performance! evaluation!was!carried!out!during!the!reporting!period!in!accordance!with!that!process.! ! The!Company!has!complied!with!this!recommendation.! ! The! Board! has! adopted! a! selfYevaluation! process! to! measure! its! performance,! and! that! of! individual! directors,!during!each!financial!year.!! A!performance!review!was!undertaken!during!the!reporting!period.! ! ASX! Recommendation! 1.7:! a! listed! entity! should! have! and! disclose! a! process! for! periodically! evaluating!the!performance!of!its!senior!executives!and!disclose!in!relation!to!each!reporting!period! where!a!performance!evaluation!was!undertaken!in!accordance!with!a!process.! ! The!Company!has!complied!with!this!recommendation.! Arrangements!put!in!place!by!the!Board!to!monitor!the!performance!of!the!Company’s!executives!include:! •! •! a!review!by!the!Board!of!the!Company’s!financial!performance[!and! appraisal!meetings!incorporating!analysis!of!key!performance!indicators!with!each!individual.! The!company!conducted!ongoing!performance!reviews!of!senior!executives!during!the!year.! ! PRINCIPLE!2:!STRUCTURE!THE!BOARD!TO!ADD!VALUE! ! ASX!Recommendation!2.1:!The!board!of!a!listed!entity!should!establish!a!nomination!committee:! •! with!at!least!three!members!the!majority!of!which!are!independent!directors! •! chaired!by!an!independent!Director\!and! •! disclose! the! charter! of! the! committee,! the! members! of! the! committee! and! the! number! of! times!the!committee!met!throughout!the!period!and!member!attendance!at!those!meetings! ! The!Company!has!not!complied!with!this!recommendation.! ! Given! the! present! size! and! complexity! of! the! Company! the! Board! has! not! constituted! a! Nomination! Committee!with!the!full!Board!carrying!out!the!role!of!a!Nomination!Committee.! ! ! ANNUAL!REPORT!2015! ! ! 45! CARAVEL!MINERALS!LIMITED! ! ! Corporate!Governance!Statement!(Continued)! ! ASX!Recommendation!2.2:!a!listed!entity!should!have!and!disclose!a!board!skills!matrix!setting!out! the! mix! of! skills! and! diversity! that! the! board! currently! has! or! is! looking! to! achieve! in! its! membership! ! The!Company!has!complied!with!this!recommendation.! ! The!Board!has!established!a!skill!matrix.!On!a!collective!basis!the!Board!has!the!following!skills:! ! Strategic!expertise!Y!ability!to!identify!and!critically!assess!strategic!opportunities!and!threats!and!develop! strategies.! Specific!Industry!knowledge!–!members!of!the!Board!have!either!specific!qualifications!and!experience!in! the!resources!sector!or!a!general!background!and!experience!in!the!resources!sector.!! Accounting! and! finance! Y! members! of! the! Board! have! either! specific! qualifications! and! experience! in! accounting! and! finance! or! the! ability! to! read! and! comprehend! the! company’s! accounts,! financial! material! presented!to!the!board,!financial!reporting!requirements!and!an!understanding!of!corporate!finance.! Risk!management!Y!Identify!and!monitor!risks!to!which!the!Company!is,!or!has!the!potential!to!be!exposed! to.! Experience!with!financial!markets!Y!Experience!in!working!in!or!raising!funds!from!the!equity!or!capital! markets.! Investor! relations! T! Experience! in! identifying! and! establishing! relationships! with! Shareholders,! potential! investors,!institutions!and!equity!analysts.! ! ASX!Recommendation!2.3:!a!listed!entity!should!disclose!the!names!of!the!directors!considered!by! the!board!to!be!independent!directors!and!provide!details!in!relation!to!the!length!of!service!of!each! Director! ! The!Company!has!complied!with!this!recommendation.! Messrs!Harris!and!Alexander!are!considered!to!be!independent!directors.!Mr!Hilmer!is!an!executive!of!the! Company!and!is!therefore!not!considered!to!be!independent.! The!appointment!date!of!Directors!is!as!follows:! ! •! Mr!Marcel!Hilmer! •! Mr!James!Harris! •! Mr!Peter!Alexander!! ! ! ! 19!November!2012! 6!June!2006! 29!April!2013! ! ASX! Recommendation! 2.4:! the! majority! of! the! board! of! a! listed! entity! should! be! independent! directors! ! The!Company!has!complied!with!this!recommendation.! Two!of!the!three!members!of!the!Board!are!considered!to!be!independent.!! ! ASX! Recommendation! 2.5:! The! Chair! of! a! listed! entity! should! be! an! independent! director! and,! in! particular,!should!not!be!the!same!person!as!the!CEO!of!the!entity! The! Company! has! not! appointed! a! chairman! at! this! time! however! two! out! of! the! three! members! of! the! Board!are!considered!to!be!independent.!When!available!to!attend!Board!meetings!Mr!James!Harris!chairs! the!meetings.!Mr!Harris!is!considered!to!be!an!independent!Director.! Mr!Hilmer!is!Chief!Executive!Officer!of!the!Company.! ASX! Recommendation! 2.6:! a! listed! entity! should! have! a! program! for! inducting! new! directors! and! provide!appropriate!professional!development!opportunities! ! The!Company!has!complied!with!this!recommendation.! ! The!Board!is!responsible!for!providing!new!directors!with!an!induction!to!the!Company!and!for!the!program! for!providing!adequate!professional!development!opportunities!for!directors!and!management.! ! ! ANNUAL!REPORT!2015! ! ! 46! CARAVEL!MINERALS!LIMITED! ! ! Corporate!Governance!Statement!(Continued)! ! PRINCIPLE!3:!ACT!ETHICALLY!AND!RESPONSIBLY! ! ASX!Recommendation!3.1:!a!listed!entity!should!establish!a!code!of!conduct!and!disclose!the!code! or!a!summary!of!the!code.! ! The!Company!has!complied!with!this!recommendation.! The! Company! has! established! a! code! of! conduct! which! requires! all! business! affairs! to! be! conducted! legally,!ethically!and!with!integrity.!! A! copy! of! the! Company’s! code! of! conduct! is! available! in! the! corporate! governance! section! of! the! Company's!website!at!www.caravelminerals.com.au.! ! ! PRINCIPLE!4:!SAFEGUARD!INTEGRITY!IN!FINANCIAL!REPORTING! ! ASX!Recommendation!4.1:!The!Board!of!a!listed!entity!should!establish!an!audit!committee:! •! with!at!least!three!members,!all!of!whom!are!nonTexecutive!directors!and!a!majority!of!which! are!independent!directors! •! chaired!by!an!independent!Director\!and! •! disclose! the! charter! of! the! committee,! the! members! of! the! committee! and! the! number! of! times!the!committee!met!throughout!the!period!and!member!attendance!at!those!meetings! ! The!Company!has!not!complied!with!this!recommendation.! ! Given!the!present!size!and!complexity!of!the!Company!the!Board!has!not!constituted!an!Audit!Committee! with!the!full!Board!carrying!out!the!role!of!an!Audit!Committee.! ! The!qualifications!of!the!members!of!the!Board!are!set!out!in!the!Directors!report.!! ! ASX! Recommendation! 4.2:! The! Board! of! a! listed! entity! should,! before! it! approves! the! entity’s! financial!statements!for!a!financial!period,!receive!from!its!CEO!and!CFO!a!declaration!that,!in!their! opinion,! the! financial! records! of! the! entity! have! been! properly! maintained! and! that! ! the! financial! statements!comply!with!the!appropriate!accounting!standards!and!give!a!true!and!fair!view!of!the! financial!position!and!performance!of!the!entity!and!that!the!opinion!has!been!formed!on!the!basis! of!a!sound!system!of!risk!management!and!internal!control!which!is!operating!effectively.! ! The!Company!partly!complies!with!this!recommendation.! ! The! Board! has! received! the! assurance! required! by! ASX! Recommendation! 4.2! in! respect! of! the! financial! statements! for! the! half! year! ended! 31! December! 2014! and! the! full! year! ended! 30! June! 2015.! Given! the! size! and! nature! of! the! Company’s! operations! the! Board! has! not! received! the! assurance! in! respect! of! the! quarterly! cash! flow! statements! believing! that! the! provision! of! the! assurance! for! the! half! and! full! year! financial!statements!is!sufficient.! ! ASX!Recommendation!4.3:!a!listed!entity!should!ensure!that!the!external!auditor!attends!its!Annual! General!Meeting!and!is!available!to!answer!questions!from!security!holders!relevant!to!the!audit.! ! The!Company!has!complied!with!this!recommendation.! ! The! external! auditor! attends! the! Annual! General! Meeting! and! is! available! to! answer! questions! from! shareholders! relevant! to! the! audit! and! financial! statements.! The! external! auditor! will! also! be! allowed! a! reasonable!opportunity!to!answer!written!questions!submitted!by!shareholders!to!the!auditor!as!permitted! under!the!Corporations!Act.! ! ! ANNUAL!REPORT!2015! ! ! 47! CARAVEL!MINERALS!LIMITED! ! ! Corporate!Governance!Statement!(Continued)! ! PRINCIPLE!5:!MAKE!TIMELY!AND!BALANCED!DISCLOSURE! ! ASX! Recommendation! 5.1:! a! listed! entity! should! establish! written! policies! designed! to! ensure! compliance!with!ASX!Listing!Rule!disclosure!requirements!and!to!ensure!accountability!at!a!senior! executive!level!for!that!compliance!and!disclose!those!policies!or!a!summary!of!those!policies.! ! The!Company!has!complied!with!this!recommendation.! The!Company!has!established!a!continuous!disclosure!policy!which!is!designed!to!guide!compliance!with! ASX! Listing! Rule! disclosure! requirements! and! to! ensure! that! all! Directors,! senior! executives! and! employees! of! the! Company! understand! their! responsibilities! under! the! policy.! The! Board! has! designated! the!Managing!Director!as!the!person!responsible!for!ensuring!that!this!policy!is!implemented!and!enforced! and!that!all!required!price!sensitive!information!is!disclosed!to!the!ASX!as!required.! In!accordance!with!the!Company's!continuous!disclosure!policy,!all!information!provided!to!ASX!for!release! to!the!market!is!posted!to!its!website!at!www.caravelminerals.com.au!after!ASX!confirms!an!announcement! has!been!made.! A! copy! of! the! continuous! disclosure! policy! is! available! in! the! corporate! governance! section! of! the! Company's!website!at!www.caravelminerals.com.au.! ! PRINCIPLE!6:!RESPECT!THE!RIGHTS!OF!SHAREHOLDERS! ! ASX!Recommendation!6.1:!a!listed!entity!should!provide!information!about!itself!and!its!governance! to!investors!via!its!website! ! The!Company!has!complied!with!this!recommendation.! The!Company’s!website!at!www.caravelminerals.com.au!contains!information!about!the!Company’s! projects,!Directors!and!management!and!the!Company’s!corporate!governance!practices,!policies!and! charters.!All!ASX!announcements!made!to!the!market,!including!annual!and!half!year!financial!results!are! posted!on!the!website!as!soon!as!they!have!been!released!by!the!ASX.!The!full!text!of!all!notices!of! meetings!and!explanatory!material,!the!Company’s!Annual!Report!and!copies!of!all!investor!presentations! are!posted!on!website.!! ! ASX! Recommendation! 6.2:! a! listed! entity! should! design! and! implement! an! investor! relations! program!to!facilitate!effective!twoTway!communication!with!investors! ! The!Company!has!complied!with!this!recommendation.! The!Company’s!Managing!Director!is!the!Company’s!main!contact!for!investors!and!potential!investors!and! make!himself!available!to!discuss!the!Company’s!activities!when!requested!together!with!other!Directors!or! senior! executives! as! required.! In! addition! to! announcements! made! in! accordance! with! its! continuous! disclosure! obligations! the! Company,! from! time! to! time,! prepares! and! releases! general! investor! updates! about!the!Company.! The!Company!has!engaged!the!services!of!an!Investor!Relations!company!to!assist!the!company!with!its! investor!relations!program.! Contact!with!the!Company!can!be!made!via!an!email!address!provided!on!the! website!and!investors!can! subscribe!to!the!Company’s!electronic!mailing!list.! ! ASX!Recommendation!6.3:!a!listed!entity!should!disclose!the!policies!and!processes!it!has!in!place! to!facilitate!and!encourage!participation!at!meetings!of!security!holders! ! The!Company!has!complied!with!this!recommendation.! The!Company!encourages!participation!of!shareholders!at!any!general!meetings!and!its!Annual!General! Meeting!each!year.!Shareholders!are!encouraged!to!lodge!direct!votes!or!proxies!subject!to!the!adoption!of! satisfactory!authentication!procedures!if!they!are!unable!to!attend!the!meeting.!! The! full! text! of! all! notices! of! meetings! and! explanatory! material! are! posted! on! the! Company’s! website! at! www.caravelminerals.com.au.! ! ! ANNUAL!REPORT!2015! ! ! 48! CARAVEL!MINERALS!LIMITED! ! ! Corporate!Governance!Statement!(Continued)! ! ASX! Recommendation! 6.4:! a! listed! entity! should! give! security! holders! the! option! to! receive! communications! from,! and! send! communications! to,! the! entity! and! its! security! register! electronically! ! The!Company!has!complied!with!this!recommendation.! Contact!with!the!Company!can!be!made!via!the!facility!or!the!email!address!provided!on!the!website!and! investors!can!subscribe!to!the!Company’s!electronic!mailing!list.! The!Company’s!share!register!provides!a!facility!whereby!investors!can!provide!email!addresses!to!receive! correspondence! from! the! Company! electronically! and! investors! can! contact! the! share! register! via! telephone,!facsimile!or!email.! ! PRINCIPLE!7:!RECOGNISE!AND!MANAGE!RISK! ! ASX!Recommendation!4.1:!The!Board!of!a!listed!entity!should!have!a!committee!to!oversee!risk:! •! with!at!least!three!members,!all!of!whom!are!nonWexecutive!directors!and!a!majority!of!which! are!independent!directors! •! chaired!by!an!independent!DirectorZ!and! •! disclose! the! charter! of! the! committee,! the! members! of! the! committee! and! the! number! of! times!the!committee!met!throughout!the!period!and!member!attendance!at!those!meetings! ! The!Company!has!not!complied!with!this!recommendation.! ! Given! the! present! size! and! complexity! of! the! Company! the! Board! has! not! constituted! a! Risk! Committee! with!the!full!Board!responsible!for!risk!management.! ! ASX!Recommendation!7.2:!The!Board!or!a!committee!of!the!Board,!of!a!listed!entity!should!review! the! entity’s! risk! management! framework! at! least! annually! to! satisfy! itself! that! it! continues! to! be! sound!and!disclose!in!relation!to!each!reporting!period!whether!such!a!review!was!undertaken! ! The!Company!has!complied!with!this!recommendation.! ! The! ! Board! ! is! ! responsible! ! for! ! the! ! oversight! ! of! ! the! ! Company’s! ! risk! ! management! ! and! control!! framework.!!Responsibility!!for!!control!!and!!design!!of!!risk!!management!!is!delegated!!to!!the!!appropriate!! level!!of!!management!!within!!the!!Company!!with!!the!Managing!Director!and!Chief!Financial!Officer!being! responsible!to!the!Board!for!the!risk!management!and!control!framework.! ! The!Board!conducted!a!review!during!the!reporting!period.! ! ASX!Recommendation!7.3:!a!listed!entity!should!disclose!if!it!has!an!internal!audit!function!and!if!it! does!not!have!an!internal!audit!function!that!fact!and!the!processes!it!employs!for!evaluating!and! continually!improving!the!effectiveness!of!risk!management!and!internal!control!processes! ! The!Company!has!complied!with!this!recommendation.! Given!the!Company’s!current!size!and!level!of!operations!it!does!not!have!an!internal!audit!function.! The! ! Board! ! is! ! responsible! ! for! ! the! ! oversight! ! of! ! the! ! Company’s! ! risk! ! management! ! and! control!! framework.!!Responsibility!!for!!control!!and!!design!!of!!risk!!management!!is!delegated!!to!!the!!appropriate!! level!!of!!management!!within!!the!!Company!!with!!the!Managing!Director!and!Chief!Financial!Officer!being! responsible!to!the!Board!for!the!risk!management!and!control!framework.! ! ! ANNUAL!REPORT!2015! ! ! 49! CARAVEL!MINERALS!LIMITED! ! ! Corporate!Governance!Statement!(Continued)! ! ASX! Recommendation! 7.4:! a! listed! entity! should! disclose! whether! it! has! any! material! exposure! to! economic,!environmental!and!social!sustainability!risks!and!if!it!does!how!it!manages!or!intends!to! manage!those!risks.! ! The!Company!has!complied!with!this!recommendation.! The!Company!has!exposure!to!economic!risks,!including!general!economy!wide!economic!risks!and!risks! associated!with!the!economic!cycle.!! There!will!a!requirement!in!the!future!for!the!Company!to!raise!additional!funding!to!pursue!its!business! objectives.!!The!Company’s!ability!to!raise!capital!may!be!effected!by!these!economic!risks.! The!Company!has!in!place!risk!management!procedures!and!processes!to!identify,!manage!and!minimise! its!exposure!to!these!economic!risks!where!appropriate! The!current!operations!of!the!Company!are!subject!to!State!and!Federal!laws!and!regulations!concerning! the!environment.!As!with!most!exploration!projects!and!mining!operations,!the!Company’s!activities!are! expected!to!have!an!impact!on!the!environment,!particularly!if!advanced!exploration!or!mine!development! proceed.!It!is!the!Company’s!intention!to!conduct!its!activities!to!the!highest!standard!of!environmental! obligation,!including!compliance!with!all!environmental!laws.! The! Board! currently! considers! that! the! Company! does! not! have! any! material! exposure! to! social! sustainability! risk.! The! Company’s! Corporate! Code! of! Conduct! outlines! the! Company’s! commitment! to! integrity! and! fair! dealing! in! its! business! affairs.! The! code! sets! out! the! principles! covering! appropriate! conduct!in!a!variety!of!contexts!and!outlines!the!minimum!standard!of!behavior!expected!from!employees! when!dealing!with!stakeholders.! ! PRINCIPLE!8:!REMUNERATE!FAIRLY!AND!RESPONSIBLY! ! ASX!Recommendation!8.1:!The!board!of!a!listed!entity!should!establish!a!remuneration!committee:! •! with!at!least!three!members!the!majority!of!which!are!independent!directors! •! chaired!by!an!independent!Director\!and! •! disclose! the! charter! of! the! committee,! the! members! of! the! committee! and! the! number! of! times!the!committee!met!throughout!the!period!and!member!attendance!at!those!meetings! ! The!Company!has!not!complied!with!this!recommendation.! ! Given! the! present! size! and! complexity! of! the! Company! the! Board! has! not! constituted! a! Remuneration! Committee.! ! ASX! Recommendation! 8.2:! a! listed! entity! should! separately! disclose! its! policies! and! practices! regarding!the!remuneration!of!nonTexecutive!directors!and!the!remuneration!of!executive!directors! and!other!senior!executives! The!Company!has!complied!with!this!recommendation.! Directors! are! paid! a! fixed! annual! fee! for! their! service! to! the! Company! as! a! NonYExecutive! Director.! NonY Executive!Directors!may,!subject!to!shareholder!approval,!be!granted!equity!based!remuneration.! Executives!of!the!Company!typically!receive!remuneration!comprising!a!base!salary!component!and!other! fixed! benefits! based! on! the! terms! of! their! employment! agreements! with! the! Company! and! potentially! the! ability! to! participate! in! bonus! arrangements! and! may,! subject! to! shareholder! approval,! if! appropriate,! be! granted!equity!based!remuneration.! ! ASX!Recommendation!8.3:!a!listed!entity!which!has!an!equity!based!remuneration!scheme!should! have! a! policy! on! whether! participants! are! permitted! to! enter! into! transactions! which! limit! the! economic!risk!of!participating!in!the!scheme!and!disclose!the!policy!or!a!summary!of!that!policy.! ! The!Company!has!complied!with!this!recommendation.! A! participant! in! an! equity! based! remuneration! plan! operated! by! the! Company! must! not! enter! into! a! transaction! (whether! through! the! use! of! derivatives! or! otherwise)! which! limit! the! economic! risk! of! participating!in!the!equity!based!remuneration!plan.! ANNUAL!REPORT!2015! ! ! 50! CARAVEL!MINERALS!LIMITED! ! ! ASX!Additional!Information! ASX!ADDITIONAL!INFORMATION! The!shareholder!information!set!out!below!was!applicable!as!at!24!September!2015:! 1.! TWENTY!LARGEST!SHAREHOLDERS! The!names!of!the!twenty!largest!holders!of!each!class!of!listed!securities!are!listed!below:! ORDINARY!SHARES! Name! KINGSGATE!CAPITAL!Pty!Ltd! FIRST!QUANTUM!MINERALS!(AUSTRALIA)!Pty!Ltd! CARAVEL!EMPLOYEE!SHARE!PLAN!Pty!Ltd! J!P!MORGAN!NOMINEES!AUSTRALIA!Ltd! HEALY!Robert!A!&!H!M! POUSTIE!Anthony!&!R!M! EYEON!INVESTMENT!Pty!Ltd! NEWSTEAD!SOUTH!HOLDINGS!Pty!Ltd! WARATAH!INVESTMENTS!Ltd! LEVY!Geoffrey! SBD!DRILLING!Pty!Ltd! HEALY!Robert!Anthony! WARATAH!AUSTRALIA!Pty!Ltd! CLARKSON’S!BOATHOUSE!Pty!Ltd! SYMINGTON!Pty!Ltd! CALAMA!HOLDINGS!Pty!Ltd! EL!PRADO!HOLDINGS!Pty!Ltd! WHITING!Michael!A!&!T!A! M!&!C!HILMER!SUPER!FUND! TAYLOR!Nicholas!Charles! Total!Top!20! Others! No!of!Ordinary! Shares!Held! Percentage!of! Issued!Shares! 135,000,000! 131,689,487! 13.01%! 12.69%! 61,458,968! 30,496,191! 28,571,429! 26,952,381! 24,458,461! 23,333,333! 22,266,057! 21,428,571! 18,168,940! 18,025,000! 15,000,000! 14,000,000! 13,142,857! 12,571,428! 10,779,761! 10,714,286! 10,000,000! 9,625,000! 5.92%! 2.94%! 2.75%! 2.60%! 2.36%! 2.25%! 2.15%! 2.06%! 1.75%! 1.74%! 1.45%! 1.35%! 1.27%! 1.21%! 1.04%! 1.03%! 0.96%! 0.93%! 637,682,150! 400,032,543! 61.46%! 38.54%! Total!Ordinary!Shares!on!Issue! 1,037,714,693! 100.00%! ! ! ANNUAL!REPORT!2015! ! ! 51! CARAVEL!MINERALS!LIMITED! ! ! ASX!Additional!Information!(Continued)! ! LISTED!OPTIONS!–!CVVOA!$0.035!EXPIRING!31!MAY!2016! Name! NEWSTEAD!SOUTH!HOLDINGS!Pty!Ltd! IONA!RESOURCES!Ltd! M!&!C!HILMER!SUPER!FUND! LOCANTRO!SPECULATIVE!INV! SMAC!NOMINEES!Pty!Ltd! MBM!INVESTMENT!Pty!Ltd! KUBALE!Graham! WINDELL!HOLDINGS!Pty!Ltd! MEDUSA!NOMINEES!Pty!Ltd! EL!PRADO!HOLDINGS!Pty!Ltd! POUSTIE!Anthony!&!R!M! ROWLEY!FAMILY!SUPER!FUND! VITOR!Pty!Ltd! HILMER!Celeste!Leonie! MARTIN!TANNER!Pty!Ltd! WINDELL!HOLDINGS!Pty!Ltd! ANCONA!NOMINEES!Pty!Ltd! MARA!SUPER!Pty!Ltd! HOWARTH!Judith!Anne! BROWN!William!Richard! Total!Top!20! Others! No!of!Listed! Options!Held! 23,333,333! 13,333,333! 10,000,000! 10,000,000! 9,000,000! 8,333,333! 7,333,333! 5,000,000! 4,284,604! 3,713,332! 3,416,666! 3,333,333! 3,333,333! 3,333,333! 2,750,000! 2,500,000! 2,000,000! 2,000,000! 2,000,000! 2,000,000! Percentage!of! Listed!Options! Issued! 14.01%! 8.00%! 6.00%! 6.00%! 5.40%! 5.00%! 4.40%! 3.00%! 2.57%! 2.23%! 2.05%! 2.00%! 2.00%! 2.00%! 1.65%! 1.50%! 1.20%! 1.20%! 1.20%! 1.20%! 120,997,933! 45,597,655! 72.61%! 27.39%! Total!Listed!Options!CVVOA!on!Issue! 166,595,588! 100.00%! ! ! ! ANNUAL!REPORT!2015! ! ! 52! CARAVEL!MINERALS!LIMITED! ! ! ASX!Additional!Information!(Continued)! ! ! 2.! DISTRIBUTION!OF!EQUITY!SECURITIES! (a)! Analysis!of!security!by!size!holding!as!at!24!September!2015:! ! ! 1!–!1,000! 1,001!–!5,000! 5,001!–!10,000! 10,001!–!100,000! 100,001!–!and!over! ! Ordinary!Shares! Listed!Options!CVVOA! Number!of! Security! Holders! 47! 60! 119! 379! 440! 1045! Number!of!Securities!Held! Number!of! Security!Holders! Number!of! Securities!Held! 9,955! 190,949! 1,108,109! 20,631,559! 1,015,774,121! 1,037,714,693! 7! 8! 4! 23! 84! 126! 3,539! 27,172! 34,166! 899,551! 165,631,160! 166,595,588! (b)! Number!of!holders!of!unmarketable!parcels!–!Ordinary!shares! Unmarketable!Parcels!–!527! 3.! SUBSTANTIAL!SHAREHOLDERS! The!names!of!the!substantial!shareholders!listed!in!the!company’s!register!at!24!September!2015!are:! Name! KINGSGATE!CAPITAL!Pty!Ltd! FIRST!QUANTUM!MINERALS!(AUSTRALIA)!Pty!Ltd! Number!of!Shares!Held! 135,000,000! 131,689,487! 4.! UNQUOTED!SECURITIES! As!at!24!September!2015,!the!following!unquoted!securities!are!on!issue:! Unquoted!Securities! Number!on!Issue! Number!of!Holders! Name!of!Holders! $0.1000!Options!expiring!26/03/2016! $0.0210!Options!expiring!16/10/2016! $0.0200!Options!expiring!16/10/2016! $0.0350!Options!expiring!31/12/2016! $0.0130!Options!expiring!31/01/2017! $0.0130!Options!expiring!31/01/2017! $0.0075!Options!expiring!31/01/2017! Total!unquoted!securities! 20,000,000! 750,000! 55,384,616! 83,333,333! 28,571,429! 87,138,578! 4,412,500! 279,590,456! 1! 1! 32(1)! 1! 1! 30(1)! 1! ! KINGSGATE!CAPITAL!Pty!Ltd! ROBWARD!Pty!Ltd! Various! FIRST!QUANTUM!MINERALS! (AUSTRALIA)!Pty!Ltd! TAYCOL!NOMINEES!Pty!Ltd! Various! ROBWARD!Pty!Ltd! ! (1)! No!individual!holder!in!excess!of!20%!of!the!issued!securities! 5.! RESTRICTED!SECURITIES! As!at!24!September!2015,!there!are!2,000,000!performance!shares!which!are!subject!to!milestone!hurdles.! ! ! ANNUAL!REPORT!2015! ! ! 53! CARAVEL!MINERALS!LIMITED! ! ! ASX!Additional!Information!(Continued)! ! ! 6.! VOTING!RIGHTS! The!voting!rights!of!the!ordinary!shares!are!as!follows:! Subject!to!any!rights!or!restrictions!for!the!time!being!attached!to!any!shares!or!class!of!shares!of!the!Company,!each! member!of!the!Company!is!entitled!to!receive!notice!of,!attend!and!vote!at!a!general!meeting.!Resolutions!of!members! will!be!decided!by!a!show!of!hands!unless!a!poll!is!demanded.!On!a!show!of!hands!each!eligible!voter!present!has!one! vote.! However,! where! a! person! present! at! a! general! meeting! represents! personally! or! by! proxy,! attorney! or! representation!more!than!one!member,!on!a!show!of!hands!the!person!is!entitled!to!one!vote!only!despite!the!number! of!members!the!person!represents.!! On!a!poll!each!eligible!member!has!one!vote!for!each!fully!paid!share!held.!! There!are!no!voting!rights!attached!to!any!of!the!options!that!the!Company!currently!has!on!issue.!Upon!exercise!of! these!options,!the!shares!issued!will!have!the!same!voting!rights!as!existing!ordinary!shares.!! 7.! ON[MARKET!BUY!BACK! There!is!currently!no!on@market!buy!back!program!for!any!of!Caravel!Minerals!Limited’s!listed!securities.! 8.! TENEMENTS! The!following!tenements!were!held!at!30!June!2015:! Prospect!Name!and!Location! Tenements! Bryah!(WA)! Calingiri!(WA)! Wynberg!(QLD)! E51/1290! E51/1369! E70/2343,!E70/2796! E70/2788,!E70/2789,!E70/3674,!E70/3680,!E70/3755,!E70/3881,! E70/4327,!E70/4328,!E70/4476,!E70/4512,!E70/4517,!E70/4674,! E70/4675,!E70/4676,!P70/1576,!P70/1593! EPM12409,!EPM25262! EPM15627!(option!to!earn!up!to!80%)! Ownership! Interest! 92.5%! 100%! 80%! ! 100%' 100%! 0%! 9.! MINERAL!RESOURCES! At!30!June!2015!the!Company!has!an!Inferred!Mineral!Resource!at!its!Wynberg!Project!of!3.1!million!tonnes!at!1.4!g/t! Au! for! 140,000! contained! ounces.! The! resource! is! unchanged! from! 30! June! 2014! and! from! the! date! the! Wynberg! Project!was!acquired!from!Kingsgate!Consolidated!Limited.!No!additional!work!has!been!performed!by!the!Company!on! the!Mineral!Resource.! ! Competent!Person!Statement! In!relation!to!the!Wynberg!Project!Mineral!Resource,!Mr!Poustie!has!sufficient!experience!that!is!relevant!to!the!style!of! mineralisation! and! type! of! deposit! under! consideration! and! to! the! activity! that! he! is! undertaking! to! qualify! as! a! Competent! Person! as! defined! in! the! 2004! Edition! of! the! ‘Australasian! Code! for! Reporting! of! Exploration! Results,! Mineral!Resources!and!Ore!Reserves’.!Mr!Poustie!consents!to!the!inclusion!in!the!report!of!the!matters!based!on!his! information!in!the!form!and!context!in!which!it!appears!and!with!the!consent!of!Kingsgate!Consolidated!Limited.!This! information!was!prepared!and!first!disclosed!under!the!JORC!Code!2004.!It!has!not!been!updated!since!to!comply!with! the!JORC!Code!2012!on!the!basis!that!the!information!has!not!materially!changed!since!it!was!last!reported.! ANNUAL!REPORT!2015! ! ! 54! CARAVEL!MINERALS!LIMITED! Information on %Exploration%Targets%'! A.%%Dasher%' % Caravel!initially!referred!to!the!Dasher!Exploration!Target!in!its!release!of!10!July!2013!(subsequently!modified!on!2! August!2012)!–!Exploration'Confirms'Significant'Potential'of'Calingiri'Copper;Molybdenum'Project.'In!a!subsequent! release!of!17!March!2014!–!Latest'Results'Confirm'Potential'of'Calingiri'Copper'Project'the!Exploration!Target!was! amended!to!include!copper!equivalent!grades.!The!latest!modelling!(November!2014)!includes!new!diamond!drill!hole! data!and!assumptions!on!metal!recoveries!based!on!recent!metallurgical!testwork.!There!has!been!no!additional!data! that!affects!the!relevant!interpretation!and!assumptions,!which!are!summarised!below:! ! The!Dasher!mineralisation,!which!is!developed!within!a!very!consistent!gneissic!unit!between!50!R!150m!thick!and! dipping!at!approximately!45!degrees!to!the!east,!has!been!intersected!over!a!strike!length!of!over!1,000m,!from! near! surface! to! a! vertical! depth! of! 500m.! Importantly,! the! mineralisation! is! open! in! all! directions.! The! consistent! nature! of! the! mineralisation! has! allowed! the! construction! of! a! robust! geological! model! from! which! tonnage! and! grade!estimates!can!be!made.!! ' Ordinary! Kriging! Block! modeling! techniques! have! been! applied! to! interpolate! grade! within! the! mineralised! host! gneiss.! While! Caravel! believes! that! the! drilling! completed! to! date! could! permit! the! estimation! of! an! Inferred! Resource! within! the! more! closely! drilled! sections! of! the! mineralised! zone,! the! density! of! drilling! is! insufficient! to! permit!resource!estimation!for!much!of!the!interpreted!mineralisation.! ! The! Company! believes! that! the! Exploration! Target! is! supported! by! the! extensive! drilling! results,! block! modeling! techniques!and!early!stage!metallurgical!results.!! ! This!target!is!based!on!the!geological!model!that!has!been!extended!only!100!m!beyond!both!the!most!northerly! and! southerly! drill! sections! (i.e.! a! total! strike! length! of! 1,250m)! and! to! a! vertical! depth! of! 450m! (500m! was! the! deepest!drill!intersection).! ! Mineralogical! studies! have! indicated! that! copper! and! molybdenum! values! are! related! to! sulphide! mineralisation! and!that!chalcopyrite!(copper!sulphide)!is!the!dominant!sulphide!species.!Also,!a!geostatistical!study!has!indicated! that! the! gold! and! silver! values! show! a! very! strong! correlation! with! copper! values.! Furthermore,! multiRelement! analyses! have! shown! relatively! low! values! of! elements,! such! as! arsenic,! that! can! be! metallurgically! deleterious.! Caravel!notes!that!this!style!of!mineralisation,!coupled!with!the!conceptual!size!and!grade!ranges,!is!indicative!of!a! significant!number!of!deposits!worldwide!that!are!currently!under!exploration!or!in!production.! !! ' Metallurgical! testwork! has! been! carried! out! by! SGS! Lakefield! Oretest! Pty! Ltd.! Two! representative! composite! samples! of! Dasher! mineralisation! (respectively! grading! 0.39%! Cu,! 130! ppm! Mo,! 1.9! ppm! Ag,! 40! ppb! Au! and! 0.49%! Cu,! 43! ppm! Mo,! 4.8! ppm! Ag,! 50! ppb! Au)! were! subject! to! rougher! flotation! testwork! which! produced! recoveries! of! 96! –! 96.4%! Cu,! 93! –! 98.2%! Mo,! 76.1! –! 80.2%! Ag! and! 42! –! 51%! Au.! This! testwork! was! primarily! designed! to! maximize! copper! recoveries! and! additional! testwork! is! needed! to! optimize! recoveries! of! other! elements.! ! Mineralogical! examination! of! the! concentrate! samples! (Report! by! R.! N.! England! Consulting! Geologist)! has! indicated! that! chalcopyrite! is! 5! times! more! abundant! than! all! other! sulphides! combined! (mainly! pyrite! and! pyrrhotite!as!well!as!molybdenite),!with!the!rest!of!the!concentrate!samples!consisting!of!silicates.! ! These!metallurgical!and!mineralogical!results!strongly!support!the!potential!for!the!Dasher!mineralisation!to!yield! both! high! recoveries,! in! particular! of! copper! and! molybdenum,! as! well! as! high! grade,! and! potentially! premium! quality,!concentrates.!Further!testwork!is!planned!to!more!specifically!evaluate!potential!process!parameters!and! concentrate!grades.! ! On! the! basis! of! these! results! Caravel! believes! that! there! is! a! reasonable! potential! for! the! recovery! and! sale! of! copper,! molybdenum,! silver! and! gold! and! that! these! elements! can,! therefore,! be! used! to! calculate! a! copper! equivalent!grade.! ! The!assumptions!and!the!formula!used!for!the!calculation!are!as!follows:! ! Metal!price!assumptions!(US$)!–!Cu!$2.61/lb,!Mo!$8/lb,!Ag!$16/oz,!Au!$1,200/oz.! Recovery!assumptions!–!Cu!96%,!Mo!98%,!Ag!80%,!Au!47%! Formula!!CuEq!=!Cu!ppm!+!(Mo!ppm*4.69)+(Ag!ppm*74.5)+(Auppm*3280).!! ! % ! ! B.%%Bindi% % The!Bindi!West!mineralisation!(western!limb!of!the!fold!structure),!is!developed!within!a!very!consistent!gneissic!unit! between!150!R!200m!thick!and!dipping!at!approximately!35R45!degrees!to!the!west!has!been!intersected!over!a!strike! length!of!over!2,000m,!from!near!surface!to!a!vertical!depth!of!275m.!Importantly,!the!mineralisation!is!open!in!all! directions.!The!consistent!nature!of!the!mineralisation!has!allowed!the!construction!of!a!robust!geological!model!from! which!tonnage!and!grade!estimates!can!be!established.!Mineralisation!at!Bindi!East!(eastern!limb!of!the!fold! structure),!is!also!developed!within!gneiss!however!its!geometry!is!interpreted!to!be!flat!dipping!with!no!current! constraints!yet!identified!on!dip!and!dip!direction.!! ' 3D! wireframe! modeling! techniques! have! been! applied! to! generate! weighted! average! grades! of! the! mineralised! bodies! within! the! host! gneiss.! While! Caravel! believes! that! the! drilling! completed! to! date! could! permit! the! estimation!of!an!Inferred!Resource!within!the!more!closely!drilled!sections!of!the!mineralised!zones,!the!density!of! drilling!is!insufficient!to!permit!resource!estimation!for!much!of!the!interpreted!mineralisation.! ! The!Company!believes!that!the!Exploration!Target!is!supported!by!the!extensive!drilling!results!and!subsequent! geological!modeling.!! ! This!target!is!based!on!the!geological!model!that!has!been!extended!100R150m!beyond!both!the!most!northerly! and! southerly! drill! sections! (i.e.! a! total! strike! length! of! 2150m)! and! to! a! vertical! depth! of! 300m! (275m! was! the! deepest!drill!intersection)!at!Bindi!West!and!100m!beyond!both!the!most!northerly!and!southerly!drill!sections!(i.e.! a!total!strike!length!of!1650m)!and!to!a!vertical!depth!of!300m!(250m!was!the!deepest!drill!intersection)!at!Bindi! East.!! ! The! visual! appearance! of! mineralisation! is! considered! very! similar! to! that! seen! at! Dasher! and! dominated! by! coarse! grained! chalcopyrite! (copper! sulphide)! and! molybdenite! (molybdenum! sulphide)! being! the! dominant! sulphide!species.!Also,!a!geostatistical!study!has!indicated!that!silver!values!show!a!very!strong!correlation!with! copper! values.! Furthermore,! multiRelement! analyses! have! shown! relatively! low! values! of! elements,! such! as! arsenic,! that! can! be! metallurgically! deleterious.! Caravel! notes! that! this! style! of! mineralisation,! coupled! with! the! conceptual! size! and! grade! ranges,! is! indicative! of! a! significant! number! of! deposits! worldwide! that! are! currently! under!exploration!or!in!production.! ! Metallurgical!testwork!has!been!carried!out!by!SGS!Lakefield!Oretest!Pty!Ltd.!A!representative!composite!sample! of! Bindi! mineralisation! (grading! 0.32%! Cu,! 77! ppm! Mo,! 1.6! ppm! Ag! and! 40ppb! gold)! were! subject! to! rougher! flotation! testwork! which! produced! recoveries! of! 95%! Cu,! 93! %! Mo,! 88%! Ag! and! 81%! Au.! This! testwork! was! primarily! designed! to! maximize! copper! recoveries! and! additional! testwork! is! needed! to! optimize! recoveries! of! other!elements.! ! These!metallurgical!results!strongly!support!the!potential!for!the!Bindi!mineralisation!to!yield!both!high!recoveries! and!potentially!premium!quality,!concentrates.!Further!testwork!is!planned!to!more!specifically!evaluate!potential! process!parameters!and!concentrate!grades.! ! On! the! basis! of! these! results! Caravel! believes! that! there! is! a! reasonable! potential! for! the! recovery! and! sale! of! copper,!molybdenum!and!silver!and!that!these!elements!can,!therefore,!be!used!to!calculate!a!copper!equivalent! grade.! ! The!assumptions!and!the!formula!used!for!the!calculation!are!as!follows:! ! Metal!price!assumptions!(US$)!–!Cu!$2.61/lb,!Mo!$8/lb,!Ag!$16/oz,!Au!$1,200/oz! Recovery!assumptions!–!Cu!95%,!Mo!93%,!Ag!88%,!Au!81%! Formula!CuEq!=!Cu!ppm!+!(Mo!ppm*4.50)+(Ag!ppm*82.8)+(Auppm*5720)! ' % % ! !! C.%%Opie% % The! Opie! mineralisation! is! developed! within! a! consistent! gneissic! unit! between! 50! R! 150m! thick! and! dipping! at! approximately! 35R45! degrees! to! the! north! has! been! intersected! over! a! strike! length! of! over! 200m,! from! near! surface! to! a! vertical! depth! of! 240m.! Importantly,! the! mineralisation! is! open! in! most! directions.! The! consistent! nature! of! the! mineralisation! has! allowed! the! construction! of! a! robust! geological! model! from! which! tonnage! and! grade!estimates!can!be!established.!! ' 3D! wireframe! modeling! techniques! have! been! applied! to! generate! weighted! average! grades! of! the! mineralised! bodies! within! the! host! gneiss.! While! Caravel! believes! that! the! drilling! completed! to! date! could! permit! the! estimation!of!an!Inferred!Resource!within!the!more!closely!drilled!sections!of!the!mineralised!zones,!the!density!of! drilling!is!insufficient!to!permit!resource!estimation!for!much!of!the!interpreted!mineralisation.! ! The!Company!believes!that!the!Exploration!Target!is!supported!by!the!extensive!drilling!results!and!subsequent! geological!modeling.!! ! This!target!is!based!on!the!geological!model!that!has!been!extended!50R100m!beyond!both!the!most!northerly!and! southerly!drill!sections!(i.e.!a!total!strike!length!of!350m)!and!to!a!vertical!depth!of!300m!(240m!was!the!deepest! drill!intersection).! ! The!visual!appearance!of!mineralisation!is!considered!very!similar!to!that!seen!at!Dasher!and!Bindi!and!dominated! by! coarse! grained! chalcopyrite! (copper! sulphide)! and! molybdenite! (molybdenum! sulphide)! being! the! dominant! sulphide!species.!Also,!a!geostatistical!study!has!indicated!that!silver!values!show!a!very!strong!correlation!with! copper! values.! Furthermore,! multiRelement! analyses! have! shown! relatively! low! values! of! elements,! such! as! arsenic,! that! can! be! metallurgically! deleterious.! Caravel! notes! that! this! style! of! mineralisation,! coupled! with! the! conceptual!size!and!grade!ranges!seen!collectively!at!Dasher,!Bindi!and!Opie,!is!indicative!of!a!significant!number! of!deposits!worldwide!that!are!currently!under!exploration!or!in!production.! ! Metallurgical!testwork!has!been!carried!out!by!SGS!Lakefield!Oretest!Pty!Ltd.!A!representative!composite!sample! of!Opie!mineralisation!(grading!0.32%!Cu,!1.34!ppm!Ag!and!50ppb!gold)!were!subject!to!rougher!flotation!testwork! which!produced!recoveries!of!97%!Cu,!96%!Ag!and!69.4%!Au.!This!testwork!was!primarily!designed!to!maximize! copper!recoveries!and!additional!testwork!is!needed!to!optimize!recoveries!of!other!elements.! ! These!metallurgical!results!strongly!support!the!potential!for!the!OPie!mineralisation!to!yield!both!high!recoveries! and!potentially!premium!quality,!concentrates.!Further!testwork!is!planned!to!more!specifically!evaluate!potential! process!parameters!and!concentrate!grades.! ! On! the! basis! of! these! results! Caravel! believes! that! there! is! a! reasonable! potential! for! the! recovery! and! sale! of! copper,!molybdenum!and!silver!and!that!these!elements!can,!therefore,!be!used!to!calculate!a!copper!equivalent! grade.! ! The!assumptions!and!the!formula!used!for!the!calculation!are!as!follows:! ! Metal!price!assumptions!(US$)!–!Cu!$2.61/lb,!Mo!$8/lb,!Ag!$16/oz,!Au!$1,200/oz! Recovery!assumptions!–!Cu!97%,!Mo!93%,!Ag!96%,!Au!69%! Formula!CuEq!=!Cu!ppm!+!(Mo!ppm*4.41)+(Ag!ppm*82.5)+(Auppm*4770)! ' % ! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!