Great Boulder Resources Annual Report 2017

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FY2017 Annual Report · Great Boulder Resources

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AnnuAl RepoRt 2017

Great Boulder Resources Limited
ACN 611 695 955

Contents

1. Key Highlights

2. Chairman’s Letter

3. Review of Operations

4. Corporate Activities

5. Directors’ Report

6. Auditors’ Independence Declaration

7. Auditors Report

8. Directors’ Declaration

9. Statement of Profit or Loss and
Other Comprehensive Income

10. Statement of Financial Position

11. Statement of Changes in Equity

12. Statement of Cash Flows

13. Notes to the Financial Statements

14. Information Required by the Australian

Securities Exchange Limited

15. Corporate Directory

1. Key Highlights

Corporate
• Great Boulder successfully listed on the Australian Securities
Exchange (ASX) on Friday 18 November 2016, having raised
A$6.1m

• The company has a tight capital structure with only 68.4m
ordinary shares on issue, $4.3m cash as at 30 June 2017
and nil debt

projects

Yamarna – Mt Venn

• An emerging copper-nickel-cobalt province at Mt Venn, located

east of Laverton in Western Australia

•

Initial assays return grades up to 1.7% Cu, 0.2% Ni and
528ppm Co from the only hole drilled into the Mt Venn complex
on Great Boulder’s tenure

• Bedrock sulphide mineralisation confirmed as the source of a

large EM conductor, with several more conductors over 9km to
be drill tested

• At the time of reporting, a ground based EM and aircore geo-

chemistry programme had commenced at Mt Venn

tarmoola

• Hosts a large-scale regional geochemical anomaly which in-

corporates the multi-million-ounce King of the Hills and Gwalia
gold deposits

• Targeted for large intrusion related gold systems

• Gravity and geochemistry programmes have defined prospec-

tive intrusions

• Recent mapping has also identified large regional shear zones

to be drill tested

Jundee

• Located 10km along strike from the 7Moz Jundee gold mine

and within 2km of the Elliott and Area 7 deposits

• Jundee mine stratigraphy extends through the Jundee South

project, with 3km of strike potential identified from geochemis-
try and field mapping

Balagundi

• Several historic gold mines located on and around the project,
including the high-grade Mount Bellew underground mine

• 5,610m RC programme completed in November & December

2016 (Mt Bellew):

– 2m grading 16.0g/t gold from 88m downhole
– 4m grading 3.5g/t gold from 26m downhole
– 27m grading 1.4g/t gold from 21m downhole
– 4m grading 5.6g/t gold from 135m downhole

Great Boulder Resources Limited - Annual Report 20172. Chairman’s letter

Dear Shareholder

I am pleased to present the Company’s first annual report since listing on
the ASX on 18 November 2016.

During the year the Company followed its strategic plan as outlined in the
prospectus. Exploration plans have been implemented at all five prospects
but access was limited to Balagundi, Tarmoola and Jundee South. Access
to Yamarna and Broadwood are subject to Ministerial Consent and in the
case of Yamarna, entry permits to the Cosmo-Newberry to Aboriginal
Reserve. All consents and permits for Yamarna were granted in August
2017 and consents for Broadwood are being finalised.

the Review of operations report goes into further
detail on these projects.

A significant development in the first year of operation was gaining
joint venture access to Gold Road’s exploration licence adjacent to the
Company’s Yamarna project. Gold Road had drilled a bedrock conductor
detected in an airborne electro-magnetic survey that was designed to
map the Thatchers Soak palaeo-channel for the purpose of delineating
water resources. This drill hole was sited at our common boundary and
intersected nickel, copper and cobalt mineralisation. Now that access to
our Yamarna project has been gained, we look forward to the results of
first pass ground electromagnetic surveying of airborne anomalies within
our tenements and scout bedrock drilling.

I am personally excited by the comparison of the Yamarna geological
setting to the newly emerging nickel province in northern Ontario Canada
known as the “Ring of Fire”. This province lies in-board of the well-known
Thomson Nickel belt whose equivalent in Western Australia is the Albany
Fraser Province which is host to the exciting Nova nickel discovery. I hope
we might make a comparable discovery.

We are still in the early stages of exploring our Tarmoola and Jundee
projects where recent mapping and high-grade surface samples has
focused our attention. The company continues to review its development
options at Balagundi and assess further gold opportunities, primarily in
Western Australia, with a view to acquiring and developing projects that
align with our strategy.

The Directors are excited with progress being made to date and look
forward to the results of the next year’s exploration work programmes.

I thank our directors, officers, staff, advisers and contractors for their
tireless hard work in 2016-17 and their support of the Company goals and
I look forward to their same commitment in 2017-18.

Gregory Hall

Chairman

Great Boulder Resources Limited - Annual Report 20173. Review of operations

Yamarna Copper-nickel

Background

The Yamarna Project is located 130 km east of Laverton in the
Eastern Goldfields District of Western Australia and consists of
six granted exploration licences and one granted prospecting
license. Great Boulder has executed a JV agreement with
EGMC to earn a 75% interest in the Yamarna project through a
minimum expenditure of $2,000,000 over five years.

The Yamarna Project lies immediately west of the
Yamarna greenstone belt and covers the southern
extensions of the Mt Venn igneous complex. A poorly-
explored greenstone enclave, interpreted to represent a
previously unrecognised portion of the Mt Venn igneous
complex, has also been interpreted on the project
tenements.

In March 2017 Great Boulder, through its Yamarna JV
partner Eastern Goldfields Mining Company Pty Ltd

(EGMC), entered into various access agreements with
the Gruyere Joint Venture which cover the Yamarna
Project. These agreements cover the joint use of
Gruyere JV transport, access and water infrastructure
over the Yamarna Project.

The Yamarna JV also acquired Exploration Licence
E38/2320 from Gold Road. E38/2320 hosts the northern
extensions of the Mt Venn igneous complex where Gold
Road identified copper-nickel sulphide mineralisation.

Updated geological

Figure 1.
map following collation of
previous exploration and
re-processed geophysics.

Great Boulder Resources Limited - Annual Report 20173. Review of Operations

(continued)

Mt Venn Copper-nickel-Cobalt prospect
The Mt Venn igneous complex is known to host anomalous Cu-Ni
mineralisation along the basal Mt Venn corridor. Interpretation of
regional aeromagnetic and airborne EM data and recently acquired
drill hole assays from E38/2320 indicates that the Cu-Ni anomalous
corridor extends under cover onto the Great Boulder tenements
with a number of magnetic and EM anomalies evident that remain
untested by drilling.

Significantly, the peak of the XTEM-1 conductor is located
450m south of the RC drill hole on Great Boulder’s Yamarna
Project. Another strong EM conductor (XTEM-2) is located a
further 2km south along the same magnetic trend and also
within Great Boulder’s Yamarna Project.

The magnetic signature of the prospective Mt Venn Complex
extends for 9km into the Yamarna Project. Re-processed
magnetic images show further co-incident XTEM anomalies
west and south east of the Thatcher’s Soak paleochannel. The
paleochannel may also mask possible bedrock conductors and
further blind targets may exist which will need to be assessed
by ground EM surveys.

During the June quarter, an independent technical review of
the Mt Venn igneous complex was commissioned to better
understand the formation and architecture of the layered mafic
intrusion, source of sulphur, and generate targets of possible
copper-nickel sulphide accumulation.

The Mt Venn intrusion appears to be formed by multiple magma
phases which have slightly different chemistry, including the
timing and differences in how sulphur has been incorporated
into the magma to form the copper-nickel sulphides.

In addition to the main Mt Venn igneous complex, a separate
mafic complex comprising several mafic-ultramafic units
within a granitoid country rock is located immediately
southeast of Mt Venn. Multi-element analysis from historical
drilling has identified nickel-copper depletion in mafic units,
suggesting a sulphur saturation event has occurred.

In May 2017 Great Boulder geologists logged Gold Road
hole 15GYWB0004 which confirmed the copper-nickel
mineralisation is associated with primary sulphides.
Importantly for EM planning and targeting, there was no
evidence in the drill hole of carbonaceous or graphitic shales
that may produce spurious EM results.

During late 2015 Gold Road drilled and assayed a single
RC hole into the edge of a large EM anomaly which was
identified from an airborne XTEM survey. The XTEM survey
was conducted to map the Thatchers Soak paleochannel as
a source of ground water for the Gruyere gold mine but also
identified discrete conductors within the Mt Venn igneous
complex which suggested a bedrock source.

Gold Road logged and assayed the drill hole for gold, base
metals and a multi-element suite. Copper-nickel sulphide
mineralisation was confirmed with hand-held XRF grades of
+1% Cu and +0.3% Ni.

Great Boulder subsequently assayed the hole in March 2017
and confirmed that the EM anomaly relates to primary
bedrock sulphide mineralisation, with peak assay results
of 1.7% Cu, 0.2% Ni, 528ppm Co, 0.3g/t Au and 6.5g/t Ag
(over 1m intervals).

Figure 2. Late-time
XTEM and location of
XTEM-1 and XTEM-2
conductors.

Great Boulder Resources Limited - Annual Report 2017Table 1. RC chip trays from drill hole 15GYWB0004 showing
mineralised intersections

Zone

From
(m)

To
(m)

Interval
(m)

Cu
(%)

Ni
(%)

Co
(ppm)

Upper

0.54 0.08

244

including

1.53

0.12

341

Lower

0.85 0.12

360

including

1.71

0.07

235

Great Boulder engaged Newexco to design and implement
the ground-based EM (moving loop) survey. The XTEM data
already available at Mt Venn was used to assist in planning
the location and size of the survey, with six initial areas
targeted for the EM survey (Figure 3).

An aircore geochemical programme has also been designed
to cover the entire Mt Venn intrusion on Great Boulder’s
tenements (Figure 3). The primary purpose of the drilling is
to map the geochemical distribution of nickel and copper
throughout the intrusion and to identify zones of metal
depletion and enrichment.

Mapping nickel-copper depletion in the intrusion is an
indicator of a sulphur-saturated system that has potentially
‘stripped’ the metals from the magma to form massive
sulphide deposits. The geochemistry will be used in
conjunction with the ground EM to identify and prioritise
targets for follow-up RC and diamond drilling.

A Heritage survey was completed in early June 2017, covering
the entire Mt Venn igneous complex as well as the Eastern
Mafic Complex. A total of 195km of tracks were surveyed
and cleared as part of Great Boulder’s ground-based EM and
drilling activities.

At the time of reporting, the moving loop EM survey and
aircore geochemistry programmes had commenced. It is
anticipated that the EM and geochemistry programmes will
be complete in September-October 2017, with RC drilling to
commence soon after.

Figure 3. Ground based moving loop EM survey and aircore drilling locations (magnetic image right, XTEM image left).

Great Boulder Resources Limited - Annual Report 20173. Review of Operations

(continued)

tarmoola
The Tarmoola project is located approximately 40 km northwest of
Leonora and in close proximity to King of the Hills (15km east) and
Thunderbox (40km north) gold mines. The Tarmoola project consists
of two exploration and 19 prospecting licences. Great Boulder has
executed a JV agreement with EGMC to earn a 75% interest in the
Tarmoola project by funding a $1,400,000 exploration program over
five years.

Tarmoola is located within the Sons of Gwalia Domain of the
Leonora greenstone belt and is composed predominantly
of basalt, with lesser dolerite, komatiite, and interflow
sedimentary units. A kilometre-scale internal granitoid
(Robbie’s Well Pluton) intrudes the central portion of the project
area. Several historical gold deposits are located around the
margin of the Tarmoola project, associated with differentiated
granitoid intrusions along northwest trending regional
structures (e.g. Diorite King, Victory and Mount Stirling)

Regional soil sampling by the Geological Survey of Western
Australia defined a kilometre-scale arsenic corridor which
transects the northeast half of the Great Boulder tenement
package. Great Boulder completed a detailed auger
geochemical programme over Tarmoola in November-
December 2016, excluding the areas of excessive transported
cover to the south of the project. The arsenic anomaly to the
north east has now been better defined as with several other
gold and pathfinder anomalies along the granite-greenstone
contact identified.

During February 2017, Great Boulder completed a ground
based gravity survey over its entire Tarmoola tenements
and combined the data with third party detailed gravity to
generate a district scale gravity map. Results from the gravity
survey, in conjunction with the multi-element geochemistry
completed, identified several targets, displaying a similar
structural setting to the King of the Hills mine and other
intrusion-related gold systems.

Figure 4. Tarmoola Regional Arsenic Soil Anomaly and
Significant Gold Mines.

Agnew-LawlersGold Fields2.7Moz Au (R&R)DarlotRed 50.3Moz Au (R&R)ThunderboxSaracen2Moz Au (R&R)0.8Moz Au (produced)BannockburnSaracen1.1Moz Au (R&R)0.3Mz Au (produced)King of the HillsRed 50.2Moz Au (R&R)1.9Mz Au (produced)GwaliaSt Barbara 3.9Moz Au (R&R)5.3Moz Au (produced)Great Boulder Resources Limited - Annual Report 2017Figure 5. Gravity image with tellurium, bismuth and
arsenic geochem anomalies, proximal mines and
prospects and planned drilling.

Figure 6. Bedrock geology with pathfinder and gold auger
geochem (target locations labeled).

In May 2017, Great Boulder completed a 67-hole (1,950m)
scout aircore geochem program at Tarmoola. Given the large
tenement holding, the drilling was wide spaced, designed
with the purpose of gathering as much information on the
underlying geology, specifically:

1. Map the regolith profile to understand the amount of

transported cover and validate the auger geochemistry results
from the November-December 2016 programme;

2. Provide end of hole geology and geochemistry to differentiate
granite intrusions and map the granite-greenstone contact; and

3. Provide additional data to generate a more detailed,

constrained gravity inversion model.

Great Boulder Resources Limited - Annual Report 20173. Review of Operations

(continued)

tarmoola (continued)
The drilling showed a stripped regolith profile to the east
where basalts and dolerites dominate the greenstone
sequence with little to no weathering profile. West of the
outcropping greenstone is dominated by extensive and
variable depth transported cover which has shed off the
eastern outcropping area and also transported south west
along more deeply incised paleochannels.

End-of-hole samples were collected for multi-element
analysis and assessed for different granite intrusion phases
and potential alteration signatures. This data was also utilised
in updating the gravity inversion model which has identified
key structures and additional granite intrusions under cover
that have not yet been tested (Figure 7 and 8).

In August 2017 (post FY17 year-end), field mapping was
undertaken over the outcropping eastern portion of the
Tarmoola project. Recently reported assay results from
surface samples show the area in close proximity the Ursus
Fault is extensively mineralised. The results of the field
mapping and surface sampling will be integrated with the
gravity and geochem data to generate a predictive geological
model for the next phase of drilling, expected to commence in
October-November 2017.

Figure 7. GBR aircore drilling and all historical drilling
over gravity image with gravity inversion contours
showing interpreted granite intrusions.

Tarmoola Fault

Ursus Fault

Granite Intrusion
with Density Contrast

NE Bounding Fault

Significant Gold Bearing
NW Structures

Potential NW Structures

GBR Aircore Drilling

Figure 8. Oblique view of Tarmoola gravity inversion
model, showing known NW mineralised structures and
potential repetitions of these structures further south.

Great Boulder Resources Limited - Annual Report 2017Jundee South
Jundee South is located 10km along strike to the south of the Jundee
gold mine (+6 million ounces of gold produced since 1995) in the
Eastern Goldfields District of Western Australia.

Great Boulder owns a 100% interest in the Jundee South
project (E53/1101). A third-party vendor retains a 0.5% Net
Smelter Return Royalty on any gold produced from Jundee
South. In June 2017, Great Boulder applied for an extension
of term for the Jundee South Exploration Lease which was
granted for a further year (until 28 July 2018).

Jundee South lies within the northern portion of the Yandal
greenstone belt and within the structural hangingwall of the
Nimary Fault. This Archaean sequence is dominated by mafic-
ultramafic volcanic rocks interbedded with meta-sediments,
mafic intrusives along with a kilometre-scale internal

granodiorite that has intruded the greenstone sequence in the
west of the project. Dolerite sills that are key host rocks for
gold mineralisation in the Jundee mine sequence extend south
from the mine area into Great Boulder’s Jundee South project

In November 2016, Great Boulder released results of an
aircore geochemistry programme that defined a 3km arsenic
and pathfinder trend, with a large accumulation of gold
nuggets discovered near the highest arsenic values. Arsenic
maps a locally significant northwest trend and is an important
pathfinder used to map gold-bearing fluid pathways at the
Jundee gold mine.

Figure 9. Left: Regional map showing the Jundee gold mine, satellite deposits and geology. Right: Arsenic anomaly
(red=high, green=moderate) over initial litho-geochem interpretation and location of gold nuggets.

Great Boulder Resources Limited - Annual Report 20173. Review of Operations

(continued)

sodic alteration in and around the porphyries, along with
Mo-W-Bi pathfinder anomalism. Moderate to strong sericite
alteration was identified in the dolerites and sediments with
associated As-Sb. This alteration signature is consistent with
what would be expected for a hydrothermal system within the
Jundee mine sequence.

Given the drilling results showed strong evidence of a
hydrothermal system, Great Boulder undertook detailed field
mapping in August 2017 (post FY17 end) to better define
the Jundee mine sequence and identify possible controlling
structures for gold mineralisation. A more refined predictive
geological model is now being developed and will be used for
planning the next phase of drilling at Jundee South.

Multi-element analysis of the fresh-rock interface was used to
build a litho-geochemical model for Jundee South. The results
show the Jundee greenstone mine sequence occurs over a
width of +1km and extends through the Jundee South project.

In January 2017, a heritage survey was completed over a
proposed exploration programme along the peak arsenic trend
and in the area where surface gold nuggets were recovered.

A maiden RC drilling programme was completed in March
2017, with 24 RC holes drilled for 3,712m testing a 500m
x 400m area. The programme was extended beyond the
planned 3,200m as structural complexity became evident
during the drilling programme.

Drilling succeeded in identifying significant structures
containing sulphide mineralisation, quartz veining and
hydrothermal alteration within the host Jundee dolerite
sequence. While highly anomalous pathfinder geochemistry
was identified in the drilling, no significant gold was detected.

Downhole multi-element data was collected from the RC
drilling and combined with all previous multi-element drill
hole data available for the project. The results showed strong

Figure 10. Jundee South project over re-processed magnetic image. Inset shows updated geological and structural
interpretation based on RC drilling with drill hole location and traces.

Great Boulder Resources Limited - Annual Report 2017Balagundi
Balagundi is located 22 km east of Kalgoorlie in Western Australia
and access to the project is provided via the sealed Bulong Road.
Balagundi covers a greenstone sequence located along the western
margin of the Bulong Dome and immediately southeast of the
Kanowna Basin. Several historic gold mines are known on and
adjacent to the tenement including the Balagundi mining centre (to
the west), Bank of Ireland (excised in the southern part of the project)
and the high-grade Mount Bellew underground mine.

Great Boulder has executed a JV agreement with EGMC to
earn a 75% interest in Mining Lease (M25/194) through the
expenditure of $1,000,000 over a five-year period.

During November and December 2016, Great Boulder drilled
63 RC holes at Balagundi (5,610m) focused on the Mt Bellew
trend. The initial 41-hole phase 1 programme commenced in
November and returned extensive mineralisation from the Mt
Bellew North and East trends.

The phase 2 drilling commenced in December following
receipt of the phase 1 results, targeting dip and strike
extensions at Mt Bellew North with results confirming the
continuity of mineralisation at Mt Bellew North and East which
remains open.

Significant results from both phases include:

• 2m at 16.0/t gold from 88m downhole, including 1m at 30.7 g/t

• 2m at 4.5g/t gold from 25m downhole, including 1m at 7.6g/t

• 4m at 3.5g/t gold from 26m downhole, including 1m at 9.0g/t

and 1m at 4.3g/t

• 4m at 3.5g/t gold from 75m downhole, including 1m at 12.6g/t

• 4m at 5.6g/t gold from 135m downhole, including 2m at 10.4g/t

• 8m at 1.5g/t gold from 35m downhole, including 2m at 3.0g/t

• 3m at 2.0g/t gold from 6m downhole, including 1m at 5.4g/t

• 14m at 1.4g/t gold from 14m downhole

Figure 11. Mt Bellew
Prospect - Interpreted
structures and drill results.

Great Boulder Resources Limited - Annual Report 20173. Review of Operations

(continued)

At Mt Bellew North, mineralisation has now been delineated
along a 300m strike extent and remains open along strike to
the south and up-dip to the south-west where thick zones
of oxide mineralisation have been discovered. At Mt Bellew
East, mineralisation has been identified along a ~200m strike
extent and remains open along strike.

While extensive mineralisation has been identified, Great
Boulder was not able to replicate the previous high grades or
widths from previous drilling. Given the repeatability issues

it is likely due to nuggety gold within the primary quartz lode.
As a consequence of the modest results from Mt Bellow, Great
Boulder completed a review of all historical and new data for
the Balagundi project, including previous exploration, as well
as more recent Great Boulder drilling and airborne magnetics
re-processing. This has led to the identification of several
additional targets which the company intends to test as part of
its next drilling campaign.

Figure 12. Balagundi
Project – Mt Bellew and
priority target areas.

Great Boulder Resources Limited - Annual Report 2017Broadwood
The Broadwood project is located immediately southwest of
Kalgoorlie and east of the Binduli gold mine and accessible via the
Great Eastern Highway. GBR has executed a JV agreement with
EGMC to earn a 75% interest in the seven Prospecting Licences
that constitute the Broadwood project by spending $500,000 on
exploration within the licences over five years.

The two Prospecting Licenses forming the
western tenement group cover an area
dominated by felsic to intermediate volcanic
and volcaniclastic rocks from the Black Flag
Group. This volcano-sedimentary package has
been intruded by a number of felsic porphyritic
intrusions that are interpreted to be part of
the Centurion porphyry suite that are a critical
element of the Binduli gold system. This package
of rocks are bound to the west by the Zuleika
shear corridor and to the east by the Abattoir
Fault. Broadly NNW-trending fault systems are
evident in and around the western tenements
and are interpreted to represent hanging-wall
splay faults off the deeper Zuleika shear corridor.
Similar structures within the Centurion Shear
host gold mineralisation at Binduli.

The eastern five Prospecting Licences at
Broadwood lie in the structural hanging-wall
of the Abattoir Fault and cover an elongate,
northwards-tapering structural sliver comprising
Kambalda Komatiite, Paringa Basalt and volcano-
sedimentary rocks of the Black Flag Group. The
Abattoir Fault transects the western portion of
these tenements and any structural repetitions
in its hanging-wall probably reflect splay faults
that link into this structure at depth. Several
significant broadly NNE trending cross-cutting
faults have been interpreted by the Geological
Survey of Western Australia to splay into the
hanging-wall of the Abattoir Fault.

Figure 13. Broadwood Project location map.

Great Boulder Resources Limited - Annual Report 20173. Review of Operations

(continued)

A programme of work application has been made for a first
pass auger geochemical programme at Broadwood. As the
project is located in close proximity to Kalgoorlie with various
land use requirements, the approvals process requires
Ministerial Consent and is proving extremely complex. Great
Boulder recently received consent for its auger programme
on two of the eastern Prospecting Licenses at Broadwood
but awaits approval on the remaining tenements before
commencing its geochemistry programme. In addition, the
northern most of the western tenements is yet to be granted,
so no programme of work application has been made for
this tenement.

Great Boulder Resources Limited - Annual Report 20174. Corporate Activities

On 12 September 2016, Great Boulder lodged its
prospectus with ASIC for an Initial Public Offering (IPO)
to raise A$5m (before costs) and take up to an additional
$2m in oversubscriptions.

The IPO was closed on 10 October 2016, having raised $6.1m
(before costs). A total of 30.7m new ordinary shares were
issued under the IPO (in addition to the existing 37.6m pre-IPO
shares) at an issue price of 20₵ per share. On 18 November
2016, shares in Great Boulder were admitted to trading on
the ASX.

Great Boulder’s total issued share capital and significant
shareholders at 30 June 2017 are detailed in Table 1 below.

Capital Structure

Total Shares on issue

Total Options on issue

Performance Rights

Shareholders

68,394,000

38,086,750

2,000,000

Exploration Capital Partners

3,571,429

Directors

Key Advisors

6,664,286

5,350,000

5.2%

9.7%

7.8%

As at 30 June 2017 Great Boulder had $4.3m in cash.

The following changes occurred to the issued capital of Great
Boulder post 30 June 2017:

• Release of 11,028,132 ordinary fully paid shares and

8,483,178 unlisted options from escrow on 7 July 2017.

The issued share capital of the Company at the date of this
report is:

Class of Securities

Issued Capital

Ordinary fully paid shares

• Quoted on the ASX

• Escrowed (18 Nov. 2018)

68,394,000

48,109,357

20,284,643

Unlisted Options (exercisable at $0.20 and
expire 18 Nov. 2020)

38,086,750

Unlisted Performance Rights

2,000,000

Competent Person’s Statement

Exploration information in this Annual Report is based upon
work undertaken by Stefan Murphy whom is a Member of
the Australasian Institute of Geoscientists (AIG). Mr Stefan
Murphy has sufficient experience that is relevant to the style
of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a
‘Competent Person’ as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’ (JORC Code). Mr Stefan
Murphy is Managing Director of Great Boulder and consents
to the inclusion in the report of the matters based on their
information in the form and context in which it appears.

Forward Looking Statements

This Annual Report is provided on the basis that neither the Company
nor its representatives make any warranty (express or implied) as to the
accuracy, reliability, relevance or completeness of the material contained
in the Annual Report and nothing contained in the Annual Report is, or
may be relied upon as a promise, representation or warranty, whether
as to the past or the future. The Company hereby excludes all warranties
that can be excluded by law. The Annual Report contains material which
is predictive in nature and may be affected by inaccurate assumptions or
by known and unknown risks and uncertainties, and may differ materially
from results ultimately achieved.

The Annual Report contains “forward-looking statements”. All statements
other than those of historical facts included in the Annual Report are
forward-looking statements including estimates of Mineral Resources.
However, forward-looking statements are subject to risks, uncertainties
and other factors, which could cause actual results to differ materially
from future results expressed, projected or implied by such forward-
looking statements. Such risks include, but are not limited to, copper,
gold and other metals price volatility, currency fluctuations, increased
production costs and variances in ore grade recovery rates from those
assumed in mining plans, as well as political and operational risks and
governmental regulation and judicial outcomes. The Company does not
undertake any obligation to release publicly any revisions to any “forward-
looking statement” to reflect events or circumstances after the date of
the Annual Report, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws. All persons
should consider seeking appropriate professional advice in reviewing
the Annual Report and all other information with respect to the Company
and evaluating the business, financial performance and operations of the
Company. Neither the provision of the Annual Report nor any information
contained in the Annual Report or subsequently communicated to any
person in connection with the Annual Report is, or should be taken as,
constituting the giving of investment advice to any person.

Great Boulder Resources Limited - Annual Report 20174. Corporate Activities

(continued)

tenement Schedule

Project

Balagundi

Broadwood

Tenement Number

M25/194

P26/4009

P26/4010

P26/4030

P26/4037

P26/4038

P26/4039

P26/4049

Status

Granted

Application

Granted

Jundee South

E53/1101

Granted

100%

Tarmoola

Yamarna

E37/1241

E37/1242

P37/8667

P37/8668

P37/8669

P37/8670

P37/8671

P37/8672

P37/8673

P37/8674

P37/8675

P37/8676

P37/8677

P37/8678

P37/8679

P37/8680

P37/8681

P37/8682

P37/8683

P37/8684

P37/8685

P37/8935

E38/2320

E38/2685

E38/2952

E38/2953

E38/2957

E38/2958

P38/4178

Granted

Application

100%

Granted

% Held

% Earning

GBR Status

75%

Earning-In

Holder

Earning-In

Holder

Earning-In

Great Boulder Resources Limited - Annual Report 20175. Directors’ Report

Your directors have pleasure in presenting their report, together with the financial statements, for the year ending 30 June 2017
and the auditor’s report thereon.

Directors
The names of the Directors of Great Boulder Resources Limited during the financial period and to the date of this report are:

Gregory C Hall

(Non-Executive Chairman)

Stefan K Murphy

(Managing Director) (Appointed 1 September 2016)

Murray E Black

(Non-Executive Director)

Melanie J Leighton

(Non-Executive Director)

Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Directors’ Information

Gregory C Hall, Non-Executive Chairman

Greg Hall is a Director of Golden Phoenix International Pty Ltd a geological consulting company. Greg was Chief Geologist for
the Placer Dome Group from 2000 to 2006. He managed Placer Dome’s exploration activity in China from 1993 to 2001. Before
joining Placer Dome in 1988, he managed exploration in Western Australia for CSR Limited. He made significant contributions to
the discovery of Rio Tinto’s Yandi iron ore mine in the Pilbara region of Western Australia and to Barrick’s Granny Smith gold mine
in WA including Keringal and Sunrise satellite gold mines. He was educated at the University of New South Wales and graduated
with Bachelor of Applied Science (First Class Honours) in 1973.

Stefan K Murphy, Managing Director (appointed 1 September 2016)

Stefan Murphy has 16 years’ experience in the mining Industry, both in industry as a geologist and mine Planning engineer and
more recently in financial advisory and equity capital markets. His technical background covers 10 years’ experience, initially
working within BHP Billiton’s iron ore and bauxite mining divisions before moving into gold and precious metals at Goldfields
Limited mining operations in Western Australia. In 2006, Mr Murphy worked on the float of Corvette Resources (formally Mineral
Sands Limited) which focused on gold and mineral sands exploration throughout Australia. In 2009, he joined PwC, within the
corporate finance group primarily focused on foreign inbound investment into Australian mining and development projects. Mr
Murphy joined RFC Ambrian in 2012, becoming an executive director in 2013. He provided both technical and financial advice on
corporate transactions and financing for Australian, European and Canadian companies and investors. For the past 2 years, Mr
Murphy has been based in London managing RFC Ambrian’s corporate finance group. During this period he has worked with UK
and European companies and investors to successfully fund global mining and oil & gas projects.

Stefan has a Bachelor of Science (Geology and Environmental Geoscience) from the University of Western Australia and a Master
of Business Administration from Curtin University.

Murray Edward Black, Non-Executive Director

Mr Black has over 40 years’ experience in the mineral exploration and mining industry and has served as an Executive Director
and Chairman for several listed Australian exploration and mining companies. He owns and manages a substantial private
Australian drilling business, has interests in several commercial developments and has significant experience in capital financing.
Mr Black has acquired and managed the exploration projects described in this document over a 20 year period. Mr Black was a
founding director and is currently the Non-executive chairman of ASX listed company Great Boulder Resources Limited.

Melanie J Leighton, Non-Executive Director

Melanie Leighton holds a degree in Geology from the University of Western Australia is a Member of the AIG and has greater than
17 years’ experience within the mineral exploration industry. She currently holds the position of General Manager- Technical
Services with Great Boulder Resources Limited. Since 2011 Mrs Leighton has managed and coordinated resource estimation,
land management, systems development, data integration, and stakeholder relations for Hot Chili. Prior to her time with Hot Chili,
Melanie held senior geological roles with Northwest Resources, Hill 50 Gold and Terra Gold gaining practical and management
experience within the areas of exploration, mining and resource development. Mrs. Leighton has extensive experience in mineral
exploration, resource development and project feasibility studies.

Great Boulder Resources Limited - Annual Report 2017
5. Directors’ Report

(continued)

Corporate Information
Great Boulder Resources Limited is a company limited by shares and is domiciled in Australia.

principal Activities
During the year, the company was principally involved in the mineral exploration of gold in Western Australia.

Results of operations
The results of the company for the year ended 30 June 2017 was a loss of $697,578 (2016: loss $20,788).

Dividends
No dividends were paid or declared since the end of the previous year. The Directors do not recommend the payment of
a dividend.

Review of operations
Refer to Operations Report on pages 4 to 16.

Significant Changes in the State of Affairs
During the year the Company successfully listed on the Australian Securities Exchange. There were no other significant changes
to the state of affairs, during or subsequent to the end of the reporting period, other than what has been reported in other parts of
this report.

Matters Subsequent to the end of the Financial Year
At the date of this report there are no other matters or circumstances which have arisen since 30 June 2017 that has significantly
affected or may significantly affect:

the operations of the company;

ii.

the results of its operations; or

iii.

the state of affairs of the company subsequent to 30 June 2017.

likely Developments and expected Results of operations
Further information on the likely developments in the operations of the company and the expected results of operations have
been included in the review of operations.

Corporate Governance Statement
The Board is responsible for the overall corporate governance of the Company, and it recognises the need for the highest
standards of ethical behaviour and accountability. It is committed to administering its corporate governance structures to
promote integrity and responsible decision making.

The Company’s corporate governance structures, policies and procedures are described in its Corporate Governance Statement
which is available on the Company’s website at http://www.greatboulder.com.au/corporate-governance/

Great Boulder Resources Limited - Annual Report 2017Security Holding Interests of Directors

Directors

Gregory C Hall

Stefan K Murphy

Murray E Black

Melanie Leighton

Ordinary Shares

Options Over Ordinary Shares

Direct

Interest

Indirect

Interest

Direct

Interest

Indirect

Interest

1,400,000

2,000,000

314,286

3,000,000

1,450,000

1,057,143

3,500,000

2,000,000

Shares under option
There were 38,086,750 ordinary shares under option at 30 June 2017.

Shares Issued on the exercise of options
There were no ordinary shares of Great Boulder Resources Limited issued during the year ended 30 June 2017 from the exercise
of options.

options lapsed/ Cancelled During the Year
No options lapsed or were cancelled during the year.

Directors Benefits
Since 30 June 2017, no Director of the company has received or become entitled to receive a benefit (other than a benefit
included in the aggregate number of emoluments received or due and receivable by Directors shown in the financial statements)
by reason of a contract made by the company with the Director or with a firm of which he is a member, or with a company in
which he has a substantial financial interest.

Company Secretary
John Sendziuk

John Sendziuk is a Chartered Accountant. He has 30 years’ experience in providing corporate secretarial, taxation and business
advice to a diverse group of business clients and public companies.

Indemnification and Insurance of Directors and officers
During the financial year, the company maintained an insurance policy which indemnifies the Directors and Officers of Great
Boulder Resources Limited in respect of any liability incurred in connection with the performance of their duties as Directors or
Officers of the company. The company’s insurers have prohibited disclosure of the amount of the premium payable and the level
of indemnification under the insurance contract.

Indemnification and Insurance of Auditor
The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the company
or any related entity against a liability incurred by the auditor.

During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company or
related entity.

Great Boulder Resources Limited - Annual Report 20175. Directors’ Report

(continued)

Directors’ Meetings
The number of directors’ meetings attended by each of the Directors of the Company during the year were:

Director

Gregory C Hall

Melanie J Leighton

Stefan K Murphy

Murray E Black

Eligible Meetings while in office

Eligible Meetings attended

environmental Issues
The Directors advise that during the year ended 30 June 2017 no claim has been made by any competent authority that any
environmental issues, condition of license or notice of intent has been breached.

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. For the measurement period, 1 July 2016 to 30 June 2017, the
Directors have assessed that there are no current reporting requirements but may be required to do so in the future.

occupational Health and Safety
Health and Safety actions are framed within the “Quality, Environment, Safety and Occupational Health Integrated Policy” that
states people´s health and safety is safeguarded within the different fields of our activity. Great Boulder Resources Limited strictly
follows. The plan covers specific areas such as the Compliance of Legal and Other Standards, Risk Assessment and Control,
Occupational Health, Emergency Response, Training, Incidents - Corrective and Preventive Action, Management of Contractors
and Suppliers, Audit and Management Review.

proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which
the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

The company was not a party to any such proceedings during the year.

non-Audit Services
The Board of Directors is satisfied that the provision of non-audit services during the year is compatible with the general standard
of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed below
did not compromise the external auditor’s independence for the following reasons:

• all non-audit services are reviewed and approved by the directors prior to commencement to ensure they do not adversely affect the

integrity and objectivity of the auditor; and

•

the nature of the services provided does not compromise the general principles relating to auditor independence in accordance with
APES 110: Code of Ethics for Professional Accountants set by the Accounting Professional and Ethical Standards Board.

Non-audit services that have been provided by the entity’s auditor, RSM Australia Partners, have been disclosed in Note 15.

Auditors Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2017 has been received and is included within this
annual report.

Great Boulder Resources Limited - Annual Report 2017ReMuneRAtIon RepoRt (AuDIteD)
The information provided in this remuneration report has been audited.

principles used to determine amount and nature of remuneration
The objective of the company’s executive reward framework is to ensure reward for performance is competitive and appropriate
for the results delivered. The Board ensures that executive reward satisfies the following key criteria for good reward governance
practises:

• competitiveness and reasonableness

• acceptability to shareholders

•

transparency

The current base remuneration pool of $300,000 for non-executive directors was set and reported in the Prospectus dated 12
September 2016. All director fees are will be periodically recommended for approval by shareholders.

The company’s policy regarding executive’s remuneration is that the executives are paid a commercial salary and benefits based
on the market rate and experience.

Details of Remuneration of the Key Management personnel of the company
Details of the nature and amount of each element of remuneration of the Key Management Personnel of the company for the
financial year are as follows:

2017

Name

Gregory C Hall
(Non-Executive Chairman)

Melanie J Leighton
(Non-Executive Director)

Stefan K Murphy *
(Managing Director)

Murray E Black
(Non-Executive Director)

John Sendziuk
(Company Secretary)

Post-
Employment

Share-
based
Payments

Performance
Linked

Salary
$

Directors’
Fee
$

Other
Benefits
$

Superannuation
$

Options
$

Total
$

50,187

36,667

187,500

36,667

55,000

242,500

123,521

3,483

50,187

40,150

17,813

35,820

241,133

14.8%

3,483

5,225

30,004

40,150

60,225

35,820

431,845

8.3%

*Stefan Murphy was appointed on 1 September 2016.

There were no salaries paid to the Key Management Personnel for the year ended 30 June 2016.

Great Boulder Resources Limited - Annual Report 2017
5. Directors’ Report

(continued)

Key Management personnel Interests in the Shares and options of the Company
The number of shares and options in the company held during the financial year, and up 30 June 2017, by each Key Management
Personnel of Great Boulder Resources Limited, including their personally related parties, is set out below. There were no shares
granted as compensation during the year.

2017

Gregory C Hall

Stefan K Murphy*

Murray E Black

Melanie Leighton

John Sendziuk

Balance at the
start of the year

Granted as
compensation

Other changes
during the year

Balance at the
end of the year

1,300,000

2,500,000

1,300,000

1,000,000

6,100,000

100,000

314,286

500,000

150,000

1,400,000

314,286

3,000,000

1,450,000

1,150,000

1,214,286

7,314,286

*Stefan Murphy was appointed on 1 September 2016.

2016

Gregory C Hall

Murray E Black

Melanie Leighton

John Sendziuk

options

2017

Gregory C Hall

Stefan K Murphy*

Murray E Black

Melanie Leighton

John Sendziuk

Balance at the
start of the year

Granted as
compensation

Other changes
during the year

Balance at the
end of the year

1,300,000

2,500,000

1,300,000

1,000,000

6,100,000

1,300,000

2,500,000

1,300,000

1,000,000

6,100,000

Balance at the
start of the year

Granted as
compensation

Other changes
during the year

Balance at the
end of the year

2,000,000

1,000,000

3,500,000

2,000,000

1,000,000

57,143

2,000,000

1,057,143

3,500,000

2,000,000

1,000,000

8,500,000

1,000,000

57,143

9,557,143

*Stefan Murphy was appointed on 1 September 2016.

2016

Gregory C Hall

Murray E Black

Melanie Leighton

John Sendziuk

Balance at the
start of the year

Granted as
compensation

Other changes
during the year

Balance at the
end of the year

2,000,000

3,500,000

2,000,000

1,000,000

8,500,000

2,000,000

3,500,000

2,000,000

1,000,000

8,500,000

Great Boulder Resources Limited - Annual Report 2017Share-based compensation
Shares

No shares were issued to key management personnel as compensation during the year ended 30 June 2017.

Options

The terms and conditions of options affecting remuneration granted to key management personnel in this and future reporting
years are as follows:

Employee

Stefan Murphy

No. Options
granted

Grant
date

Vesting
date

Expiry
date

Exercise
price

Fair value
per option at
grant date

1,000,000

25/08/2016

17/11/2020

$0.20

$0.036

All options were granted over unissued fully paid ordinary shares in the company. Options vest based on the provision of service over
the vesting period whereby the executive becomes beneficially entitled to the option on vesting date. Options are exercisable by the
holder as from the vesting date. There has not been any alteration to the terms or conditions of the grant since the grant date. There
are no amounts paid or payable by the recipient in relation to the granting of such options other than on their potential exercise.

Service Contracts
Stefan Murphy - Managing Director

The Company has entered into an Executive Services Agreement with its Managing Director, Mr Stefan Murphy, in relation to his
employment by the Company.

The material terms of this agreement are as follows:

(a) Mr Murphy is employed as the Managing Director.

(b) Mr Murphy will be paid an annual salary of $225,000 plus statutory superannuation.

Plan:

(i) 1,000,000 unlisted options exercisable at $0.20 on or before 16 November 2020; and

(ii) 500,000 Class A Performance Rights, 750,000 Class B Performance Rights and 750,000 Class C Performance Rights.
Each class of Performance Rights is subject to achieving performance hurdles. The granting of the Performance Rights
are subject to approval of the shareholders at a general meeting.

(d) Mr Murphy’s employment may be terminated by the Company giving 2 months’ notice in the first 12 months of his
employment, and 6 months’ notice thereafter. The Company may otherwise terminate his employment immediately
for cause (e.g. serious misconduct).

Great Boulder Resources Limited - Annual Report 20175. Directors’ Report

(continued)

non-executive Directors
The Company has entered into a letter of engagement with each Non-Executive Director confirming their appointment and terms
of the engagement.

Each Non-Executive Director is entitled to be paid an annual director’s fee as follows:

Mr Hall

Mr Black

$50,000

$40,000

Ms Leighton

$40,000

The director’s fees are exclusive of statutory superannuation.

John Sendziuk - Company Secretary

The Company has entered into a letter of engagement with John Sendziuk as Company Secretary. Mr Sendziuk is to be paid an
annual salary of $60,000 plus statutory superannuation.

Additional information
The earnings of the company for the two years since incorporation to 30 June 2017 are summarised below:

Revenue

Expenses

EBITDA

EBIT

Loss after income tax

The factors that are considered to affect total shareholders return (‘TSR’) are summarised below

Share price at financial year end ($)

Basic earnings per share (cents per share)

*The Company was not listed as at 30 June 2016

[end of Remuneration Report]

2017

56,871

(754,449)

(694,015)

(697,578)

2016

351

(21,139)

(20,788)

0.15

(1.24)

(.11)

Dated this 18th day of September 2017 in accordance with a resolution of the Directors, pursuant to section 298(2)(a) of the
Corporations Act 2001 and signed on behalf of the Board by:

Stefan K Murphy

Managing Director

Perth

Great Boulder Resources Limited - Annual Report 2017

6. Auditors’ Independence Declaration

AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of Great Boulder Resources Limited for the year ended 30 June 2017, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. RSM AUSTRALIA PARTNERS Perth, WA ALASDAIR WHYTE Dated: 18 September 2017 Partner Great Boulder Resources Limited - Annual Report 20177. Auditors Report

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GREAT BOULDER RESOURCES LIMITED Opinion We have audited the financial report of Great Boulder Resources Limited (the Company), which comprises the statement of financial position as at 30 June 2017, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Company's financial position as at 30 June 2017 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Great Boulder Resources Limited - Annual Report 201727

Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed this matter Carrying value of exploration and evaluation expenditure Refer to Note 9 in the financial statements The Company has capitalised a significant amount of exploration and evaluation expenditure, with a carrying value of $1,719,701 as at 30 June 2017. Under AASB 6 Exploration for and Evaluation of Mineral Resources, the Company is required to test the amount of exploration and evaluation asset for impairment when facts and circumstances suggest that the carrying amount may exceed the recoverable amount. This assessment was significant to our audit as a result of the judgement and complexity involved. Our audit procedures in relation to the carrying value of the exploration and evaluation asset included:  Obtaining evidence that the Company has valid rights to explore in the specific area;  Enquiring with and assessing management’s basis on which they have determined that the exploration and evaluation of mineral resources has not yet reached the stage where it can be concluded that no commercially viable quantities of mineral resources exists;  Enquiring with management and reviewing budgets and plans to test that the Company will incur substantive expenditure on further exploration for and evaluation of mineral resources in the specific area; and  Reviewing minutes of director meetings and Australian Securities Exchange announcements to ensure that the Company had not resolved to discontinue activities in the specific area. Other Information The directors are responsible for the other information. The other information comprises the information included in the Company's annual report for the year ended 30 June 2017, but does not include the financial report and the auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Great Boulder Resources Limited - Annual Report 20177. Auditors Report

(continued)

In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This description forms part of our auditor's report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included within the directors' report for the year ended 30 June 2017. In our opinion, the Remuneration Report of Great Boulder Resources Limited, for the year ended 30 June 2017, complies with section 300A of the Corporations Act 2001. Responsibilities 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. RSM AUSTRALIA PARTNERS Perth, WA ALASDAIR WHYTE Dated: 18 September 2017 Partner Great Boulder Resources Limited - Annual Report 20178. Directors’ Declaration

The directors of the company declare that:

the financial statements and notes are in accordance with the Corporations Act 2001, Corporations Regulations 2001 and
other mandatory professional reporting requirements, and:

a. comply with Australian Accounting Standards, which, as stated in accounting policy Note 1 to the financial statements,

constitutes explicit and unreserved compliance with International Financial Reporting Standards; and

b. give a true and fair view of the company’s financial position as at 30 June 2017 and of its performance for the year

ended on that date; and

in the Directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when
they become due and payable.

The Directors have been given the declarations required by section 295A of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the Board of Directors.

Stefan K Murphy

Managing Director

Dated this 18th September 2017

Great Boulder Resources Limited - Annual Report 2017
9. Statement of profit or loss and other

Comprehensive Income

For the year ended 30 June 2017

Interest income

Rent

Depreciation

Rehabilitation

Corporate fees

Employee benefits expense

General expenses

Geological supplies

Marketing

Legal costs

Share based payment

Travel costs

Plant and equipment written off

Administration expenses

Tenement management

IT consulting

Project Acquisition costs

Loss before income tax

Income tax expense

Loss after income tax

Note

2017

56,871

(88,399)

(3,563)

(3,325)

(22,737)

(304,162)

(83,964)

(52,711)

(35,820)

(23,457)

(12,662)

(67,631)

(25,029)

(30,989)

06.04.2016-
30.06.2016

351

(652)

(1,926)

(7,480)

(2,655)

(5,603)

(2,823)

(697,578)

(20,788)

(697,578)

(20,788)

Other comprehensive income

Total comprehensive income attributable to members of Great Boulder
Resources Limited

(697,578)

(20,788)

Basic and diluted loss per share (cents)

(1.24)

(.11)

The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

Great Boulder Resources Limited - Annual Report 201710. Statement of Financial position

As at 30 June 2017

Current Assets

Cash and cash equivalents

Other current assets

Total Current Assets

Non-Current Assets

Plant and equipment

Exploration and evaluation expenditure

Total Non-Current Assets

Total Assets

Current Liabilities

Trade and other payables

Borrowings

Total Current Liabilities

Total Liabilities

Net Assets

Equity

Contributed equity

Option reserve

Accumulated losses

Total Equity

Note

2017

2016

4,256,267

1,333,698

55,264

10,810

4,311,531

1,344,508

39,317

1,719,701

1,759,018

109,260

6,070,549

1,453,768

72,644

435,700

28,000

463,700

5,997,905

990,068

6,473,451

1,010,856

242,820

(718,366)

(20,788)

5,997,905

990,068

The above Statement of Financial Position should be read in conjunction with the accompanying notes

Great Boulder Resources Limited - Annual Report 201711. Statement of Changes in equity

For the year ended 30 June 2017

Company

Balance at 1 July 2016

Loss for the year

Total Comprehensive Income for the Year

Shares issued (net of costs)

Share based payments

Balance at 30 June 2017

Balance at 6 April 2016 - date of incorporation

Loss for the year

Total Comprehensive Income for the Year

Shares issued (net of costs)

Balance at 30 June 2016

Contributed
Equity

1,010,856

5,462,595

6,473,451

1,010,856

Option
Reserve

Accumulated
Losses

Total Equity

242,820

(20,788)

(697,578)

990,068

(697,578)

5,462,595

242,820

(718,366)

5,997,905

(20,788)

1,010,856

(20,788)

990,068

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes

Great Boulder Resources Limited - Annual Report 2017

12. Statement of Cash Flows

For the Year Ended 30 June 2017

Cash Flows from Operating Activities

Payments to suppliers and employees

Interest received

Company

2017
$

06.04.2016-
30.06.2016
$

Note

(772,402)

27,857

(17,865)

351

Net cash used in operating activities

17(b)

(744,545)

(17,514)

Cash Flows from Investing Activities

Payments for plant and equipment

Payments for exploration and evaluation

(55,542)

(1,605,896)

(12,185)

Net cash used in investing activities

(1,661,438)

(12,185)

Cash Flows from Financing Activities

Proceeds from issue of shares (net of costs)

Share capital refunded

Proceeds / (repayment) of borrowings

5,669,596

1,335,397

(313,044)

(28,000)

28,000

Net cash provided by financing activities

5,328,552

1,363,397

Net increase in cash held

2,922,569

1,333,698

Cash and cash equivalents at the beginning of the financial year

Cash and cash equivalents at the end of the financial year

17(a)

1,333,698

4,256,267

1,333,698

The above Statement of Cash Flows should be read on conjunction with the accompanying notes.

Great Boulder Resources Limited - Annual Report 2017

13. notes to the Financial Statements

1. SuMMARY oF SIGnIFICAnt ACCountInG polICIeS
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated.

new, revised or amending Accounting Standards and Interpretations adopted
The company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Any significant impact on the accounting policies of the company from the adoption of these Accounting Standards and
Interpretations are disclosed below. The adoption of these Accounting Standards and Interpretations did not have any significant
impact on the financial performance or position of the company.

The following Accounting Standards and Interpretations are most relevant to the company:

AASB 9 Financial Instruments

This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard replaces all previous
versions of AASB 9 and completes the project to replace IAS 39 ‘Financial Instruments: Recognition and Measurement’. AASB
9 introduces new classification and measurement models for financial assets. A financial asset shall be measured at amortised
cost, if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows, which arise
on specified dates and solely principal and interest. All other financial instrument assets are to be classified and measured at fair
value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on
equity instruments (that are not held -for-trading) in other comprehensive income (‘OCI’). For financial liabilities, the standard
requires the portion of the change in fair value that relates to the entity’s own credit risk to be presented in OCI (unless it would
create an accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting
treatment with the risk management activities of the entity. New impairment requirements will use an ‘expected credit loss’
(‘ECL’) model to recognise an allowance. Impairment will be measured under a 12-month ECL method unless the credit risk on
a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. The
standard introduces additional new disclosures. The company will adopt this standard from 1 July 2018 but the impact of its
adoption is yet to be assessed by the company.

AASB 16 Leases

This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB 117
‘Leases’ and for lessees will eliminate the classifications of operating leases and finance leases. Subject to exceptions, a ‘right-
of-use’ asset will be capitalised in the statement of financial position, measured as the present value of the unavoidable future
lease payments to be made over the lease term. The exceptions relate to short -term leases of 12 months or less and leases of
low-value assets (such as personal computers and small office furniture) where an accounting policy choice exists whereby either
a ‘right-of-use’ asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the
capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred
and an estimate of any future restoration, removal or dismantling costs. Straight-line operating lease expense recognition
will be replaced with a depreciation charge for the leased asset (included in operating costs) and an interest expense on the
recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease
under AASB 16 will be higher when compared to lease expenses under AASB 117. However, EBITDA (Earnings before Interest,
Tax, Depreciation and Amortisation) results will be improved as the operating expense is replaced by interest expense and
depreciation in profit or loss under AASB 16. For classification within the statement of cash flows, the lease payments will be
separated into both a principal (financing activities) and interest (either operating or financing activities) component. For lessor
accounting, the standard does not substantially change how a lessor accounts for leases. The company will adopt this standard
from 1 July 2019. The impact of the new leases standard is that leased asset will be capitalised in the statement of financial
position, measured as the present value of the unavoidable future lease payments to be made over the lease term and a liability
corresponding to the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial
direct costs incurred and an estimate of any future restoration, removal or dismantling costs.

(a) Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian equivalents to International
Financial Reporting Standards (AIFRS), other authoritative pronouncements of the Australian Accounting Standards Board,
Australian Accounting Interpretations and the Corporations Act 2001.

These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board.

Great Boulder Resources Limited - Annual Report 2017The financial report was authorised for issue on 11th September 2017 by the Board of Directors.

The functional and presentation currency of Great Boulder Resources Limited is Australian Dollars.

The directors have prepared the financial statements on a going concern basis, which contemplates continuity of normal business
activities and the realisation of assets and extinguishment of liabilities in the normal course of business.

Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-
for-sale financial assets.

(b)

Income tax

The company adopts the liability method of tax-effect accounting whereby the income tax expense is based on the profit adjusted
for any non-assessable or disallowed items.

Deferred tax is accounted for using the statement of balance sheet liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax
will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect
on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled.
Deferred tax is credited in the statement of comprehensive income except where it relates to items that may be credited directly
to equity, in which case the deferred tax is adjusted directly against equity.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse
change will occur in income taxation legislation and the anticipation that the company will derive sufficient future assessable
income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of
returns, trade allowances and amounts collected on behalf of third parties. Revenue is recognised for major business activities as
follows:

Interest Income

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Other Services

Other debtors are recognised at the amount receivable and are due for settlement within 30 days from the end of the month in
which services were provided.

(d) Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is current when: it is expected to be realised or intended to be sold or consumed in normal operating cycle; it is held
primarily for the purpose of trading; it is expected to be realised within twelve months after the reporting period; or the asset is
cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period. All other assets are classified as non-current.

A liability is current when: it is expected to be settled in normal operating cycle; it is held primarily for the purpose of trading; it is
due to be settled within twelve months after the reporting period; or there is no unconditional right to defer the settlement of the
liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current.

(e) Exploration and evaluation expenditure

Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried
forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through
the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an
area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically
recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written off
in the year in which the decision is made.

Great Boulder Resources Limited - Annual Report 201713. Notes to the Financial Statements

(continued)

(f) Plant and equipment

Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and 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 company and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and
impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount
from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the
assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining
recoverable amounts.

Depreciation

The depreciable amount of all plant and equipment is depreciated on a diminishing value over their useful lives to the company
commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset

Depreciation Rate

Plant and Equipment

10-33%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are
included in the statement of comprehensive income.

(g) Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and
which are unpaid, together with assets ordered before the end of the financial year. The amounts are unsecured and are usually
paid within 30 days of recognition.

(h) Equity-based payments

Equity-based compensation benefits can be provided to suppliers and employees.

The fair value of options granted is recognised as an employee benefit expense with a corresponding increase in contributed
equity. The fair value is measured at grant date and recognised over the period during which the recipient becomes
unconditionally entitled to the options.

The fair value at grant date is independently determined using an option pricing model that takes into account the exercise price,
the term of the option, the vesting and performance criteria, the impact of dilution, the non-tradeable nature of the option, the
share price at grant date and expected price volatility of the underlying share, the expected divided yield and the risk-free interest
rate for the term of the option.

(i)

Earnings per share

Basic earnings per share

Basic earnings per share is determined by dividing the profit attributable to equity holders of the company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial
year, adjusted for bonus elements in ordinary shares issued during the year.

ii. Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

Great Boulder Resources Limited - Annual Report 2017(j) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the board of directors.

(k)

Impairment of assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are
subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The 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 flows
(cash generating units).

(l) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value, and bank overdrafts.

(m) Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is more
likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.

(n) GST

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable
from the taxation. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated as inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which
are recoverable from, or payable to the taxation authority, are presented as operating cash flow.

(o) Borrowings

Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are
subsequently measured at amortised cost using the effective interest method.

Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date, the loans
or borrowings are classified as non-current.

The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in the statement of
financial position, net of transaction costs.

(p) Finance costs

Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the
period in which they are incurred, including interest on short-term and long-term borrowings

(q)

Issued Capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from
the proceeds.

Great Boulder Resources Limited - Annual Report 201713. Notes to the Financial Statements

(continued)

2. CRItICAl 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, estimates and assumptions on
historical experience and on other various factors, including expectations of future events; management believes to be reasonable
under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The
judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Exploration and evaluation costs

Exploration and evaluation costs have been capitalised on the basis that the company will commence commercial production in
the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources. Key judgements
are applied in considering costs to be capitalised which includes determining expenditures directly related to these activities and
allocating overheads between those that are expensed and capitalised. In addition, costs are only capitalised that are expected to
be recovered either through successful development or sale of the relevant mining interest. Factors that could impact the future
commercial production at the mine include the level of reserves and resources, future technology changes, which could impact
the cost of mining, future legal changes and changes in commodity prices. To the extent that capitalised costs are determined not
to be recoverable in the future, they will be written off in the period in which this determination is made.

Share-based payment transactions

The company measures the cost of equity-settled transactions with suppliers and employees by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-
Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates
and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and
liabilities within the next annual reporting period but may impact profit or loss and equity.

Great Boulder Resources Limited - Annual Report 20173. SeGMent InFoRMAtIon
The company has identified its operating segments based on the internal reports that are reviewed and used by the board of
directors (chief operating decision makers) in assessing performance and determining the allocation of resources.

The company operates as a single segment which is mineral exploration and in a single geographical location which is Australia.

InteReSt InCoMe

Interest income

InCoMe tAX eXpenSe

(a) Reconciliation of income tax expense to prima facie tax payable

Loss before income tax

Prima facie income tax at 28.5% (2016: 30%)

Tax loss not recognised

Income tax expense

(b) Tax losses:

2017

56,871

2016

35,475

(697,578)

(198,810)

198,810

(20,788)

(6,236)

6,236

Unused tax losses for which no deferred tax asset has been recognised

718,366

20,788

Potential tax benefit @ 28.5% (2016: 30%)

204,734

6,236

account is $204,734 (2016: $6,236).

The benefit for tax losses will only be obtained if:

The company derives income, sufficient to absorb tax losses.

ii. There is no change to legislation to adversely affect the company and its subsidiaries in realising the benefit from the

deduction of the losses.

6. CASH AnD CASH eQuIVAlentS

Cash at Bank

4,256,267

1,333,698

Great Boulder Resources Limited - Annual Report 2017

13. Notes to the Financial Statements

(continued)

7. otHeR CuRRent ASSetS

GST refund

Trade and other receivables

8. plAnt AnD eQuIpMent

Plant and equipment at cost

Less provision for depreciation

Reconciliations:

Plant and equipment

Carrying amount at the beginning of the year

Additions

Plant and equipment written off

Depreciation

Carrying amount at the end of the year

2017

15,440

39,824

55,264

42,880

(3,563)

39,317

55,542

(12,662)

(3,563)

39,317

2016

171

10,639

10,810

9. eXploRAtIon AnD eVAluAtIon eXpenDItuRe

Exploration and evaluation – at cost

Carrying amount at the beginning of the year

Mining tenements purchased at cost

Capitalised mineral exploration and evaluation expenditure

Exploration costs written off

Carrying amount at the end of the year

1,719,701

109,260

1,610,441

1,719,701

109,260

21,000

88,260

109,260

The future realisation of these non-current assets is dependant on further exploration and funding necessary to the resources or
realisation through sale.

10. tRADe AnD otHeR pAYABleS

Trade payables and accruals

Seed Capital refunds

Seed capital refund are due to an oversubscription for capital raising completed in June 2016.

11. BoRRoWInGS

Non-bank loan

Borrowings are non-interest bearing with short term maturities.

72,644

122,656

313,044

435,700

28,000

Great Boulder Resources Limited - Annual Report 201712. ContRIButeD eQuItY

No. Shares

2017

2016

2017

(a) Ordinary Shares - fully paid

At the beginning of the financial year

34,102,071

1,010,856

Issue of Incorporation Shares

Issue of Seed shares

Shares issued during the year

Less cost of issue

19,500,000

14,602,071

34,291,929

6,394,100

(931,505)

2016

196

1,022,157

(11,497)

At the end of the financial year

68,394,000

34,102,071

6,473,451

1,010,856

(b) Terms and Conditions of Contributed Equity

Ordinary Shares

Ordinary shares have the right to receive dividends as declared and, in the event of winding up 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.

Restricted Shares

As at 30 June 2017 31,312,775 ordinary shares were in escrow.

The company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can
continue to provide returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.

In order to maintain or adjust the capital structure, the company may issue new shares, pay dividends or return capital to shareholders.

Capital is calculated as ‘equity’ as shown in the statement of financial position, and is monitored on the basis of funding
exploration activities.

Great Boulder Resources Limited - Annual Report 201713. Notes to the Financial Statements

(continued)

13. ReSeRVeS AnD ACCuMulAteD loSSeS

(a) Accumulated losses

Accumulated losses at the beginning of the year

Net loss for the year

Accumulated losses at the end of the year

(b) Reserves

Options reserve

The options reserve is used to recognise the fair value of options issued.

As at 30 June 2017, no options to which the reserve relates have been exercised.

Balance at the beginning of the year

Share based payment expense

Share based payment - capital raising costs

Balance at the end of the year

Movement in Unlisted Options

Balance at beginning of financial year

Issued on incorporation

Issue of options attached to seed shares

Options issued during the year

Options lapsed/cancelled during the financial year

Balance at end of financial year

Listed Options

There are no listed options over ordinary shares in the company at 30 June 2017 (2016: NIL).

2017

(20,788)

(697,578)

(718,366)

35,820

207,000

242,820

2017

Options

2016

(20,788)

2016

Options

33,801,036

26,500,000

1,785,714

2,500,000

7,301,036

38,086,750

33,801,036

Great Boulder Resources Limited - Annual Report 2017

14. loSS peR SHARe

Loss after tax attributable to the owners of Great Boulder Resources Limited

Basic and diluted loss per share (cents)

Unexercised options are not dilutive.

2017

(697,578)

(1.24)

2016

(20,788)

(0.05)

The weighted average number of ordinary shares on issue used in the calculation
of basic loss per share

The weighted average number of ordinary shares and potential ordinary shares
used as the denominator in calculating diluted loss per share

56,137,247

37,673,500

56,137,247

37,673,500

15. ReMuneRAtIon oF AuDItoRS

Remuneration of the auditor for:

- Auditing and reviewing of financial reports

- Tax services

- Independent assurance report

22,600

4,231

8,000

34,831

3,000

16. KeY MAnAGeMent peRSonnel DISCloSuReS

(a) Directors

The following persons were Directors of Great Boulder Resources Limited during the financial year and up to the date of
this report:

Gregory C Hall

(Chairman)

Stefan K Murphy

(Managing Director)

Melanie J Leighton

(Non-Executive Director)

Murray E Black

(Non-Executive Director)

(b) Company Secretary

John Sendziuk

Short-term benefits

Post-employment benefits

Share based payments

2017

366,021

30,004

35,820

431,845

2016

Great Boulder Resources Limited - Annual Report 201713. Notes to the Financial Statements

(continued)

17. noteS to StAteMent oF CASH FloWS

(a) Reconciliation of Cash

For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in money market
instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statement of cash flows is
reconciled to the related items in the statement of financial position as follows:

Cash and short term deposits

(b) Reconciliation of Net Cash used in Operating Activities to Operating

Loss for the year

Depreciation

Share based payments

Plant & equipment written off

2017

4,256,267

2016

1,333,698

1.333,698

(697,578)

(20,788)

3,563

35,820

12,662

Net cash flows from operating activities before change in assets and liabilities

(645,533)

(20,788)

Change in assets and liabilities during the financial year:

Other current assets

Payables

Net cash outflow from operating activities

There were no non cash investing and financing activities during the year.

18. CoMMItMentS FoR eXpenDItuRe
Exploration Commitments

(44,454)

(54,558)

(744,545)

(10,810)

14,084

(17,514)

On 13 June 2016, the company signed Joint Venture Agreements with Eastern Goldfields Mining Company Pty Ltd, which grants
the company the rights to earn a 75% interest in the tenements by sole funding certain Joint Venture expenditure upon the terms
and conditions set out in the agreements.

Over a five year period from the commencement date, the company must fund all outgoings payments required to keep the
tenements in good standing and all other Joint Venture expenditure, or pay amount to Eastern Goldfields Mining Company Pty Ltd,
or a combination of the two to the amounts disclosed below. These obligations are not provided for in the financial statements.

Within one year

Later than one year but not later than five years

Operating Leases

554,160

3,212,537

3,766,697

554,160

4,345,840

4,900,000

During the year the Company entered into a Licence Deed with Hot Chili Limited whereby the Company is granted a licence to
co-occupy the office located at 768 Canning Highway Applecross. The material terms of the Deed are:

• The Company will pay 50% of the rent and variable outgoings otherwise payable by Hot Chili under the Head Lease;

• The Deed will operate until terminated by either party giving three months’ notice of termination of the Head Lease;

• The Head Lease was renewed during the year for three years expiring on 29 February 2020.

Great Boulder Resources Limited - Annual Report 2017

18. CoMMItMentS FoR eXpenDItuRe (continued)
The minimum lease obligations are not provided for in the financial statements:

Within one year

Later than one year but not later than five years

2017

55,750

92,917

148,667

2016

19. eVentS oCCuRRInG AFteR RepoRtInG DAte
No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect
the operations of the company, the results of those operations, or the state of affairs of the company in future financial periods.

20. RelAteD pARtIeS
A company associated with Mr Hall, a director, Golden Phoenix International Limited was paid $50,187 (2016: $nil) in directors
and consulting fees. No amounts were owing as at 30 June 2017 (2016: Nil).

A company in which Mr Black is a director, Blue Spec Drilling Pty Ltd, was paid $479,688 (2016: $88,260) for drilling services
and $10,050 for expenses reimbursed at cost. No amounts were owing as at 30 June 2017 (2016: $88,260).

All payments were made at recognised commercial rates.

21. ContInGent lIABIlItIeS
The company has no contingent liabilities.

22. FInAnCIAl RISK MAnAGeMent
The company’s principal financial instruments comprise receivables, payables, cash and short-term deposits. The company
manages its exposure to key financial risks in accordance with the company’s financial risk management policy. The objective of
the policy is to support the delivery of the company’s financial targets while protecting future financial security.

The main risks arising from the company’s financial instruments are interest rate risk, credit risk and liquidity risk. The company
uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of
exposure to interest rates and assessments of market forecasts for interest rates. Ageing analysis of and monitoring of receivables
are undertaken to manage credit risk, liquidity risk is monitored through the development of future rolling cash flow forecasts.

The Board reviews and agrees policies for managing each of these risks as summarized below.

Primary responsibility for identification and control of financial risks rests with the Board. The Board reviews and agrees policies for
managing each of the risks identified below, including for interest rate risk, credit allowances and cash flow forecast projections.

Risk Exposures and Responses

(a)

Interest rate risk exposure

The company’s is not exposed to interest rate risk.

(b)

Credit risk exposure

Credit risk arises from the financial assets of the company, which comprise deposits with banks and trade and other receivables.
The company’s exposure to credit risk arises from potential default of the counter party, with the maximum exposure equal to
the carrying amount of these instruments. The carrying amount of financial assets included in the statement of financial position
represents the company’s maximum exposure to credit risk in relation to those assets.

The company does not hold any credit derivatives to offset its credit exposure.

The company trades only with recognised, credit worthy third parties and as such collateral is not requested nor is it the
Company’s policy to securities it trades and other receivables.

Receivable balances are monitored on an ongoing basis with the result that the company does not have a significant exposure to
bad debts.

There are no significant concentrations of credit risk within the company.

Great Boulder Resources Limited - Annual Report 201713. Notes to the Financial Statements

(continued)

22. FInAnCIAl RISK MAnAGeMent (continued)

Liquidity risk arises from the financial liabilities of the company and the company’s subsequent ability to meet their obligations to
repay their financial liabilities as and when they fall due.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and, the availability of
funding through the ability to raise further equity or through related party entities. Due to the dynamic nature of the underlying
businesses, the Board aims at maintaining flexibility in funding through management of its cash resources. The company has no
financial liabilities at the year-end other than normal trade and other payables incurred in the general course of business.

Remaining contractual maturities

The following tables detail the company’s remaining contractual maturity for its financial instrument liabilities. The tables have
been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial
liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual
maturities and therefore these totals may differ from their carrying amount in the statement of financial position.

2017

Non-derivatives

Non-interest bearing

Trade payables

Borrowings

Total non-derivatives

2016

Non-derivatives

Non-interest bearing

Trade payables

Borrowings

Total non-derivatives

Weighted average
interest rate

1 year or less

72,644

Remaining contractual
maturities

72,644

1 year or less

Remaining contractual
maturities

435,700

28,000

463,700

435,700

28,000

463,700

Great Boulder Resources Limited - Annual Report 201723. SHARe BASeD pAYMentS
Below are details of share based payments made during the current year and prior financial years.

(a) Options issued

Set out below is a summary of options on issue as at 30 June 2017

Issue
date

Expiry
date

Exercise
Price

Balance
at start
of year

Number
issued
during year

Number
expired
during year

Exercised
during
the year

Balance
at end
of year

Number
exercisable
at end of
year

13/05/2016 17/11/2020

$0.20

26,500,000

30/06/2016

17/11/2020

$0.20

7,301,036

07/07/2016

17/11/2020

25/08/2016

17/11/2020

18/11/2016

17/11/2020

$0.20

1,785,714*

1,000,000

1,500,000

33,801,036

4,285,714

*Options were granted as free attaching options as part of the share placement

(b) Fair value of options issued

26,500,000

7,301,036

1,785,714

1,000,000

1,500,000

38,086,750

1,500,000

The fair value at issue date was determined using a Black-Scholes option pricing model that takes into account the exercise
price, the share price at issue date and expected price volatility of the underlying share, and the risk free interest rate for the
term of the loan.

The model inputs for options granted during the year ended 30 June 2017 included:

Options are granted for no consideration.

Exercise price - $0.20

Expected price volatility of the Company’s shares: 100%

Risk-free interest rate: (1.56% to1.86%)

Spot price at date of valuation: ($0.07 to $0.20)

The options granted as free attaching options are not included in the above inputs as they did not incur any share based
payment expense.

The weighted average exercise price for options issued during the year was $0.20 (2016: $0.20).

The weighted average remaining contractual life of options outstanding at the end of the financial year is 3.4 years (2016: 4.4 years).

Total transactions arising from share-based payment transactions recognised during the year were as follows:

SBP – transaction costs within contributed equity

SBP - expenses

2017

207,000

35,820

242,820

2016

Great Boulder Resources Limited - Annual Report 201714. Information Required by the Australian

Securities exchange limited

(a) Spread of Holdings

1,001

5,001

10,001

1,000

5,000

10,000

100,000

100,001 & Over

Shareholders

Units

232

106

451

955

79,857

805,436

10,201,587

57,306,165

68,394,000

(b) Substantial Shareholders

Exploration Capital Partners 2014 Ltd

3,571,429

Gregory C Hall

Stefan K Murphy

Murray E Black

Melanie J Leighton

Shares Held
Directly

Held by Companies
in which Directors’
have a beneficial Interest

314,286

1,400,000

3,000,000

1,450,000

Great Boulder Resources Limited - Annual Report 2017Shareholder information as at 17 August 2017
The names of the twenty largest shareholders as at 17 August 2017 who between them held 49.58% of the issued capital are
listed below:

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Exploration Capital Partners 2014 Ltd
Black International Pty Ltd
Ostertag Holdings Pty Ltd
Milling George S & M
R & L Leighton Pty ltd
Ajava Holdings Pty Ltd
Willroth Pty Ltd
Broomhead James
Leighton Crossing Pty Ltd
Omaroo Pty Ltd
Halley Scott W & SM
Double DJ Enterprises Pty Ltd
Beeson John
Woolford Graham
Romulus Pty Ltd
O’Donnell Patrick W
Francis Raymond
Gecko Resources Pty Ltd
Rothwell David
Unaval Nominees Pty Ltd Unaval Management

Number of Ordinary Shares

3,571,429
3,000,000
2,750,000
2,750,000
2,500,000
2,000,000
1,969,000
1,849,750
1,450,000
1,400,000
1,300,000
1,300,000
1,300,000
1,214,286
1,150,000
1,000,000
1,000,000
885,714
767,675
750,000

5.22
4.39
4.02
4.02
3.66
2.92
2.88
2.70
2.12
2.05
1.90
1.90
1.90
1.78
1.68
1.46
1.46
1.30
1.12
1.10

optionholder information as at 17 August 2017
The names of the twenty largest optionholders as at 17 August 2017 who between them held 88.06% of the issued capital are
listed below:

33,907,854

49.58

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

R & L Leighton Pty Ltd
Ostertag Holdings Pty Ltd
Milling George S & M
Black International Pty Ltd
Halley Scott W & S M
Double DJ Enterprises Pty Ltd
Beeson John
Omaroo Pty Ltd
Leighton Crossing Pty Ltd
Expl Cap Partners 2014 Ltd
Murphy Stefan
Ajava Holdings Pty Ltd
O’Donnell Patrick W
Romulus Pty Ltd
QOC Founders Nominees Pty Ltd
Stephens B O & E J
Broomhead James
Pistachio Pty Ltd
Francis Raymond
Woolford Graham

Number of Ordinary Shares

3,500,000
3,500,000
3,500,000
3,500,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
1,785,714
1,057,143
1,000,000
1,000,000
1,000,000
867,857
750,000
642,500
571,429
500,000
357,143
33,531.786

9.19
9.19
9.19
9.19
5.25
5.25
5.25
5.25
5.25
4.69
2.78
2.63
2.63
2.63
2.28
1.97
1.69
1.50
1.31
0.94
88.06

Great Boulder Resources Limited - Annual Report 201715. Corporate Directory

Directors
Gregory C Hall (Non-Executive Chairman)

Stefan K Murphy (Managing Director)
(Appointed 1 September 2016)

Murray E Black (Non-Executive Director)

Melanie J Leighton (Non-Executive Director)

Company Secretary
John E Sendziuk

principal place of Business
First Floor, 768 Canning Highway

APPLECROSS, WA 6153

Telephone: +61 8 6323 7800

Facsimile:

+61 8 9315 5004

Registered office
First Floor 768 Canning Highway

APPLECROSS, WA 6153

Telephone: +61 8 6323 7800

Facsimile:

+61 8 9315 5004

Solicitors
Jackson McDonald

Level 17, 225 St George’s Terrace

PERTH, WA 6000

Auditors
RSM Australia Partners

8 St George’s Terrace

PERTH, WA 6000

Share Registry
Security Transfer Registrars Pty Ltd

770 Canning Highway

APPLECROSS, WA 6153

Telephone:

+61 8 9315 0933

Bankers
Westpac Banking Corporation

Hannan Street

KALGOORLIE, WA 6430

Stock exchange
Securities are listed on the Australian

Securities Exchange (ASX Code: GBR)

Great Boulder Resources Limited - Annual Report 201751

Great Boulder Resources Limited - Annual Report 201752

Great Boulder Resources Limited - Annual Report 2017Strong team proven
track record